P.B.M. Polytex Ltd. — Annual Report 2025

Sep 1, 2025

PBM POLYTEX LTD. CIN :L17110GJ1919PLC000495 REGD. OFFICE: OPP. STATION, POST PETLAD – 388450, DIST: ANAND, GUJARAT, PHONE: 224001, 224003, STORES: 224005, SALES: 224006, FAX (02697) 224009, E-Mail: pbmmills@patodiagroup.com

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THROUGH BSE.LISTING CENTRE

Date-01.09.2025

To, The General Manager M/s BSE Limited, Department of Corporate Services, Floor 25, P. J. Towers, Dalal Street, Mumbai – 400001

BSE Scrip Code – 514087

Sir / Madam,

SUB: ANNUAL REPORT FOR THE FINANCIAL YEAR 2024-25

Pursuant to provisions of Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed herewith copy of 106[th] Annual Report of the Company for the Financial Year 2024-25 along with the Notice of 106[th] Annual General Meeting of the Company, as circulated to the Shareholders of the Company through electronic mode today.

The 106[th] Annual Report is placed on the Company’s website i.e. www.pbmpolytex.com.

This is for your kind information and record.

Thanking you, Yours faithfully, For PBM Polytex Limited

SWATI Digitally signed by SWATI BILLORE BILLORE Date: 2025.08.30 14:39:34 +05'30'

Swati Billore Company Secretary and Compliance Officer (FCS 8321)

ENCL: As above

BARODA OFFICE: 8[TH] FLOOR, “RAMAKRISHNA CHAMBERS”, PRODUCTIVITY ROAD, ALKAPURI, BARODA – 390 007. TELEPHONE NO. : 2333587, 2320053, FAX NO. (0265) 2338979 E-Mail: pbm@patodiagroup.com, Website: www.pbmpolytex.com

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PBM POL YTEX LIMITE 106TH ANNUAL REPORT FY2024-25

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www.pbmpolytex.com

PBM POLYTEX LIMITED

Table of Contents

Corporate Information	1
106THAGM Notice	2
Boards’ Report and Annexures	15
Corporate Governance Report	31
Shareholders’ Information	45
Management Discussion and Analysis	48
Independent Auditor’s Report- Standalone	56
Standalone Financial Statements - Balance Sheet - Statement of Profit & Loss - Statement of Cash Flow - Change in Equity - Notes to Financial Statements	69 70 71 72 73
Independent Auditor’s Report- Consolidated	117
Consolidated Financial Statements - Balance Sheet - Statement of Profit & Loss - Statement of Cash Flow - Change in Equity - Notes to Financial Statements	127 128 129 130 131

PBM POLYTEX LIMITED

106[TH] ANNUAL REPORT (2024-25) BOARD OF DIRECTORS Shri Krishan Kumar Patodia Chairman Shri Gopal Patodia Managing Director Shri Mohan Kumar Patodia Managing Director cum CFO Shri Hari Prasad Siotia Non – Executive Director Shri Ashok Pandit Independent Director Shri Rakesh Todi Independent Director Shri Chirayush Patel Independent Director Ms. Amishal Modi Independent Director SENIOR EXECUTIVES Shri Amit Patodia Senior President cum CEO Shri Vikash Patodia Senior President COMPANY SECRETARY Ms. Swati Billore REGISTERED OFFICE Opposite Railway Station, Petlad – 388450 Dist. Anand, Gujarat, Website – www.pbmpolytex.com MUMBAI OFFICE 12[th ] Floor, Raheja Chambers, 213, Nariman Point, Mumbai – 400 021 CORPORATE OFFICE 8[th] Floor, Ramakrishna Chambers, Productivity Road, Alkapuri, Vadodara – 390 007 MANUFACTURING UNITS (1) Opposite Railway Station, Petlad – 388 450 Dist. Anand, Gujarat. (2) Plot No. 16 to 19, Sector B, AKVN Industrial Area, Kheritaigaon, Borgaon, Dist. Chhindwara (MP) WINDMILLS (1) Vill: Suthari, Revenue Survey No. 870/P, AbdasaTaluka, Dist. Kutch (Guj.) (2) Vill: OkhaMadhi, Survey No. 24 Part, Taluka Dwarka, Dist. Jamnagar (Guj.) (3) Vill: Methan Survey No. 284, Taluka Jamjodhpur, Dist. Jamnagar (Guj.) (4) Vill: Methan Survey No. 284/3 Paiki, Taluka Jamjodhpur, Dist. Jamnagar (Guj.)

BANKERS State Bank of India IDBI Bank Limited REGISTRAR AND SHARE TRANSFER M/s. MUFG Intime India Pvt. Ltd. (Formerly Link Intime India Pvt. Ltd.) AGENT (“RTA”) Branch Office: “Geetakunj” 1, Bhakti Nagar Society, Behind ABS Tower, Old Padra Road,

Vadodara – 390 015

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PBM POLYTEX LIMITED NOTICE OF 106[TH] ANNUAL GENERAL MEETING

To

The Shareholder,

The Notice is, hereby, given that the 106[th] Annual General Meeting of the Members of PBM Polytex Limited will be held through Video Conferencing (“VC”) / Other Audio Visual Means (“OAVM”), on Friday, the 26[th] Day of September, 2025 at 11:00 A.M. to transact the following business(es):

ORDINARY BUSINESS:

1. To receive, consider and adopt the Standalone and Consolidated Financial Statements including Audited Balance Sheets as at 31[st] March 2025, Statements of Profit and Loss and Cash Flow Statements for the year ended on that date together with the Directors’ Report and Auditors’ Reports thereon.

2. To appoint a Director in place of Shri Gopal Patodia (DIN: 00014247), as director who retires by rotation and being eligible, offers himself for re-appointment.

3. To appoint a Director in place of Shri Krishan Kumar Patodia (DIN: 00027335), as director who retires by rotation and being eligible, offers himself for re-appointment.

SPECIAL BUSINESS:

4. To ratify the remuneration payable to the Cost Auditor for the financial year 2025-26:

To consider and, if thought fit, to pass the following resolution, with or without modification(s), as an ORDINARY RESOLUTION:

“RESOLVED THAT pursuant to the provisions of Section 148 and all other applicable provisions, if any, of the Companies Act, 2013, and the Companies (Audit and Auditors) Rules, 2014 (including any statutory modification(s) or re-enactment(s) thereof, for the time being in force), the remuneration of Rs. 60,000/(Rupees Sixty Thousand only) plus GST and reimbursement of travelling and out-of pocket expenses to M/s. K. C. Moondra & Associates, Cost Accountants, Vadodara (FRN No. 101814), as recommended by the Audit Committee and approved by the Board to conduct the audit of cost records and statements maintained by the Company for the financial year 2025-26, be and is, hereby, ratified and confirmed.

RESOLVED FURTHER THAT the Board of Directors of the Company, be and is, hereby, authorized to do all such acts, things and deeds and take all such steps as may be deemed necessary, proper or expedient to give effect to this resolution. ”

5. To appoint Secretarial Auditors of the Company

To consider and, if thought fit, to pass the following resolution, with or without modification(s), as an ORDINARY RESOLUTION:

“ RESOLVED THAT pursuant to Section 204 and other applicable provisions, if any, of the Companies Act, 2013, Rule 9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 and Regulation 24A of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI Listing Regulations”), other applicable laws/statutory provisions, if any, as amended from time to time, M/s J J Gandhi & Co., Practising Company Secretaries (Firm Registration Number S1996GJ018900) be and are hereby appointed as Secretarial Auditors of the Company for term of five consecutive years commencing from financial year 2025-26 till financial year 2029-30, at such fees, plus applicable taxes and other out-of-pocket expenses as may be mutually agreed upon between the Board of Directors of the Company and the Secretarial Auditors.”

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6. To approve revision in remuneration payable to Shri Amit Patodia, Senior President cum Chief Executive Officer

To consider and, if thought fit, to pass the following Resolution, with or without modifications, as SPECIAL RESOLUTION:

“RESOLVED THAT pursuant to Section 188(1)(f) of the Companies Act, 2013 read with Rule 15(3)(b) of the Companies (Meetings of Board and its Powers) Rules, 2014 and as approved by the Nomination and Remuneration Committee and the Board of Directors, the Company, hereby, accords consent, for revision in remuneration payable to the Senior President cum Chief Executive Officer, Shri Amit Patodia, a relative of the Managing Director of the Company at monthly salary in the scale of Rs. 2,65,000/ – Rs. 12,000 – Rs. 3,25,000/- with effect from 01.10.2025. House Rent is being reduced from 50% to 30%. The monthly salary, together with the usual allowances and benefits, amenities and facilities including Superannuation Fund, Gratuity Fund, Provident Fund, as applicable to other employees occupying similar post or posts within the same rank so that the total remuneration and perks shall not exceed Rs. 5,00,000/- per month i.e. Rs. 60,00,000/- per annum, with authority to the Board of Directors to bifurcate the above referred remuneration and perks within the aforesaid limit.”

By Order of the Board For PBM Polytex Limited

Place : Vadodara Date : 13.08.2025

GOPAL PATODIA (Managing Director) (DIN: 00014247)

NOTES:

1. An Explanatory Statement pursuant to Section 102 of the Companies Act, 2013 (“Act”) which sets out details relating to ordinary and special business to be transacted at the AGM is annexed hereto.

2. The Ministry of Corporate Affairs (“MCA”) has vide its General Circular No. 20/2020 dated May 5, 2020 read with General Circular No. 14/2020 dated April 8, 2020, General Circular No. 17/2020 dated April 13, 2020 and latest amended by the Cicular No. 09/2024 dated 19.09.2024 (collectively referred to as “MCA Circulars”) and Securities and Exchange Board of India (‘SEBI’) vide its Circular SEBI/HO/CFD/CFD-PoD2/P/CIR/2024/133 dated October 3, 2024 (collectively referred to as “SEBI Circulars”), have permitted the holding of AGM through Video Conferencing (“VC”) or Other Audio-Visual Means (“OAVM”), without the physical presence of the Members at a common venue vide the above MCA circulars and provided relaxation to companies from dispatching physical copy of annual report vide above SEBI circulars. In compliance with the provisions of the Companies Act, 2013 (“Act”), amended provisions of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations”), MCA Circulars and Secretarial Standard on General Meetings issued by The Institute of Company Secretaries of India (‘SS-2’), the AGM of the Company will be held through VC / OAVM.

3. Pursuant to the provisions of Section 108 of the Companies Act, 2013 read with Rule 20 of the Companies (Management and Administration) Rules, 2014 (as amended) and Regulation 44 of SEBI (Listing Obligations & Disclosure Requirements) Regulations 2015 (as amended), and MCA Circulars, the Company is providing facility of remote e-voting to its Members in respect of the business to be transacted at the AGM. For this purpose, the Company has entered into an agreement with Central Depository Services (India) Limited (CDSL) for facilitating voting through electronic means, as the authorized e-Voting agency. The facility of casting votes by a member using remote e-voting as well as the e-voting system on the date of the AGM will be provided by CDSL.

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1. As the AGM is being conducted through VC/OAVM, where physical attendance of the Members is dispensed with, the facility of appointment of proxies by the Members is not available. Consequently, the Proxy Form and the Route Map are not annexed to this Notice. However, the Body Corporates are entitled to appoint authorised representatives to attend the AGM through VC/OAVM and participate there at and cast their votes through e-voting.

2. The Company has fixed Monday, September 19, 2025 as Cut-off date for determining entitlement for remote e-voting as well as e-voting of shareholders holding shares in physical or dematerialized form.

3. In accordance with Regulation 40 of the SEBI Listing Regulations, as amended, the Company has stopped accepting any fresh transfer requests for securities held in physical form. Members holding shares of the Company in physical form are requested to kindly get their shares converted into demat/electronic form to get inherent benefits of dematerialization. Members may please note that SEBI vide its Circular No. SEBI/HO/MIRSD/MIRSD_RTAMB/P/CIR/2022/8 dated January 25, 2022 has mandated the listed companies to issue securities in demat form only, while processing service requests viz. Issue of duplicate share certificate, transmission and transposition request etc. Accordingly, Shareholders are requested to make service requests by submitting a duly filled and signed Form ISR-4, the format of which is available on the Company’s website under the weblink at https://pbmpolytex.com/upload/investor_relations/form-isr-4circular-p-pdf.pdf. It may be noted that any service request can be processed only after the folio is KYC compliant.

4. The Members can join the AGM in the OAVM mode 15 minutes before and after the scheduled time of the commencement of the Meeting by following the procedure mentioned in the Notice. The facility of participation at the AGM through VC/OAVM will be made available for 1000 members on first come first served basis. This will not include large Shareholders (Shareholders holding 2% or more shareholding), Promoters, Institutional Investors, Directors, Key Managerial Personnel, the Chairpersons of the Audit Committee, Nomination and Remuneration Committee and Stakeholders Relationship Committee, Auditors etc. who are allowed to attend the AGM without restriction on account of first come first served basis.

5. The attendance of the Members attending the AGM through VC/OAVM will be counted for the purpose of reckoning the quorum under Section 103 of the Companies Act, 2013.

6. The details of Director seeking Appointment / Re-appointment pursuant to provisions of Regulation 36(3) of the Listing Regulations and Secretarial Standard – 2 are annexed herewith as Annexure - A.

7. Pursuant to the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016, as amended from time to time, all the Equity Shares held by such shareholders who have not claimed their dividend for consecutive seven years from the financial year 2017-18 shall be transferred to the Investor Education and Protection Fund (IEPF) Authority alongwith dividend remaining unpaid for the financial year 2017-18. The necessary notices in this regard have been given to all the concerned shareholders through Registered Post.

8. All the work related to share registry in terms of both physical and electronic, are being conducted by Company’s Registrar & Share Transfer Agents, MUFG Intime India Pvt. Limited, (Formerly known as Link Intime India Pvt. Ltd.) “Geetakunj” 1, Bhakti Nagar Society, Behind ABS Tower, Old Padra Road, Vadodara – 390 015, Tel: 0265-3566768, Email Id: vadodara@in.mpms.mufg.com. The Members are requested to send their communication to the aforesaid address.

9. The Register of Members of the Company will remain closed from Saturday 20[th] September, 2025 to Friday, 26[th] September, 2025 (both days inclusive), for the purpose of Annual General Meeting.

10. All documents referred to in the Notice are open for inspection at the Registered Office of the Company between 11:00 a.m. to 1:00 p.m. on any working day except Saturdays and Sundays and holidays upto the date of Annual General Meeting.

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1. In line with the MCA Circulars, the Notice calling the AGM and Annual Report have been uploaded on the website of the Company at http://pbmpolytex.com. The Notice can also be accessed from the websites of the Stock Exchange i.e. BSE Limited at www.bseindia.com and on the website of CDSL (authorized agency for providing the e-voting facility) i.e. www.evoting.nsdl.com.

2. ELECTRONIC DISPATCH OF NOTICE AND ANNUAL REPORT: As per the MCA General Circular No. 20/2020 dated 5th May, 2020 and SEBI Circular No. SEBI/HO/CFD/CMD1/CIR/P/2020/79 dated 12th May, 2020, Notice of AGM along with Annual Report for the Financial Year ended 31st March, 2025 is being sent only in electronic mode (through email) to those Members whose e-mail addresses are registered with the Company/ MUFG Intime India Private Limited or the Depository Participant(s).

3. Members are requested to register / update their details of Email ID, Bank Details by accessing https://web.in.mpms.mufg.com/EmailReg/Email_Register.html which is the portal of the RTA of the Company, M/s. MUFG Intime India Private Limited.

4. Members are requested to intimate changes, if any, pertaining to their name, postal address, e-mail address, telephone / mobile numbers, Permanent Account Number (PAN), mandates, nominations, power of attorney, bank details such as, name of the bank and branch details, bank account number, MICR code, IFSC code, etc.:

5. a. For shares held in electronic form: to their Depository Participants (DPs).

b. For shares held in physical form: to the Company / Registrar and Transfer Agent of the Company in prescribed Form ISR-1 and other forms pursuant to SEBI Master Circular No. SEBI/HO/MIRSD/POD1/P/CIR/2023/70 dated May 17, 2023. The Company has sent individual letters to all the Members holding shares of the Company in physical form for furnishing their PAN, KYC details and Nomination pursuant to aforesaid SEBI Circulars in Form ISR-1 and other Forms. These Forms are also available on the website of the Company at https://pbmpolytex.com/investor-relations/2/. Attention of the Members holding shares of the Company in physical form is invited to go through and submit the said Form ISR–1 and such other Forms, as may be applicable to them.

1. As per the provisions of Section 72 of the Act and Rule 19(1) of the Companies (Share Capital and Debentures) Rules, 2014, Members holding shares in physical form may file nomination in the prescribed Form SH - 13 with Registrar. In respect of shares held in demat form, the nomination form may be filed with the respective DP. As per SEBI Circular No. SEBI/HO/MIRSD/MIRSD-PoD-1/P/ CIR/2023/37 dated March 16, 2023, the common and simplified norms for processing investor’s service request by RTAs and norms for furnishing PAN, KYC details and Nominations with various forms are made available at the Company’s website at https://pbmpolytex.com/investor-relations/2/ for easy access.

2. This information has also been placed on the Company’s, as well as, BSE’s websites and notified in Newspapers. The shareholders should take proper care in this regard in their interest as advised in the Notices by the Company. Such action will continue to be enforced year after year.

3. AGM has been convened through VC/OAVM in compliance with applicable provisions of the Companies Act, 2013 read with MCA Circular No. 14/2020 dated April 08, 2020 and MCA Circular No. 17/2020 dated April 13, 2020, MCA Circular No. 20/2020 dated May 05, 2020.

21. The detailed instructions and the process for accessing and participating in the AGM through VC/OAVM facility and voting through electronic means including remote e-voting are explained herein below:

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THE INSTRUCTIONS FOR MEMBERS FOR E-VOTING AND JOINING ANNUAL GENERAL MEETING:-

The remote e-voting period begins on 23[rd] September 2025 at 09:00 A.M. and ends on 25[th] September 2025 at 05:00 P.M. The remote e-voting module shall be disabled by CDSL for voting thereafter. The Members, whose names appear in the Register of Members / Beneficial Owners as on the record date (cut-off date) i.e. 19[th] September, 2025, may cast their vote electronically. The voting right of shareholders shall be in proportion to their share in the paid-up equity share capital of the Company as on the cut-off date, being 19[th] September, 2025.

CDSL e-Voting System – For e-voting and Joining Virtual meetings:

Step 1 : Access through Depositories CDSL/NSDL e-Voting system in case of individual shareholders holding shares in demat mode.

Step 2 : Access through CDSL e-Voting system in case of shareholders holding shares in physical mode and non-individual shareholders in demat mode.

• (i) The voting period begins on 23[rd] September, 2025 from 9.00AM and ends on 25[th] September, 2025 till 5.00PM. During this period shareholders’ of the Company, holding shares either in physical form or in dematerialized form, as on the cut-off date 19[th] September 2025 may cast their vote electronically. The e- voting module shall be disabled by CDSL for voting thereafter.

• (ii) Shareholders who have already voted prior to the meeting date would not be entitled to vote at the meeting venue.

• (iii) Pursuant to SEBI Circular No. SEBI/HO/CFD/CMD/CIR/P/2020/242 dated 09.12.2020, under Regulation 44 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, listed entities are required to provide remote e-voting facility to its shareholders, in respect of all shareholders’ resolutions. However, it has been observed that the participation by the public noninstitutional shareholders/retail shareholders is at a negligible level.

Currently, there are multiple e-voting service providers (ESPs) providing e-voting facility to listed entities in India. This necessitates registration on various ESPs and maintenance of multiple user IDs and passwords by the shareholders.

In order to increase the efficiency of the voting process, pursuant to a public consultation, it has been decided to enable e-voting to all the demat account holders , by way of a single login credential, through their demat accounts/ websites of Depositories/ Depository Participants . Demat account holders would be able to cast their vote without having to register again with the ESPs, thereby, not only facilitating seamless authentication but also enhancing ease and convenience of participating in e-voting process.

Step 1 : Access through Depositories CDSL/NSDL e-Voting system in case of individual shareholders holding shares in demat mode.

(iv) In terms of SEBI circular no. SEBI/HO/CFD/CMD/CIR/P/2020/242 dated December 9, 2020 on e-Voting facility provided by Listed Companies, Individual shareholders holding securities in demat mode are allowed to vote through their demat account maintained with Depositories and Depository Participants. Shareholders are advised to update their mobile number and email Id in their demat accounts in order to access e-Voting facility.

Pursuant to abovesaid SEBI Circular , Login method for e-Voting and joining virtual meetings for Individual shareholders holding securities in Demat mode CDSL/NSDL is given below:

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Type of shareholders	Login Method
Individual Shareholders holding securities in Demat mode withCDSL Depository	1) Users who have opted for CDSL Easi / Easiest facility, can login through their existing user id and password. Option will be made available to reach e-Voting page without any further authentication. The users to login to Easi / Easiest are requested to visit CDSL website www.cdslindia.com and click on login icon & My Easi New (Token) Tab. 2) After successful login the Easi / Easiest user will be able to see the e- Voting option for eligible companies where the evoting is in progress as per the information provided by company. On clicking the evoting option, the user will be able to see e-Voting page of the e-Voting service provider for casting your vote during the remote e-Voting period or joining virtual meeting & voting during the meeting. Additionally, there is also links provided to access the system of all e-Voting Service Providers, so that the user can visit the e-Voting service providers’ website directly. 3) If the user is not registered for Easi/Easiest, option to register is available at CDSL website www.cdslindia.com and click on login & My Easi New (Token) Tab and then click on registration option. 4) Alternatively, the user can directly access e-Voting page by providing Demat Account Number and PAN No. from a e-Voting link available onwww.cdslindia.com home page. The system will authenticate the user by sending OTP on registered Mobile & Email as recorded in the Demat Account. After successful authentication, user will be able to see the e- Voting option where the evoting is in progress and also able to directly access the system of all e-Voting Service Providers.
Individual Shareholders holding securities in demat mode withNSDL Depository	1) If you are already registered for NSDL IDeAS facility, please visit the e- Services website of NSDL. Open web browser by typing the following URL: https://eservices.nsdl.com either on a Personal Computer or on a mobile. Once the home page of e-Services is launched, click on the “Beneficial Owner” icon under “Login” which is available under ‘IDeAS’ section. A new screen will open. You will have to enter your User ID and Password. After successful authentication, you will be able to see e-Voting services. Click on “Access to e-Voting” under e-Voting services and you will be able to see e-Voting page. Click on company name or e-Voting service provider name and you will be re-directed to e-Voting service provider website for casting your vote during the remote e-Voting period or joining virtual meeting & voting during the meeting. 2) If the user is not registered for IDeAS e-Services, option to register is available athttps://eservices.nsdl.com.Select “Register Online for IDeAS “Portal or click at https://eservices.nsdl.com/SecureWeb/IdeasDirectReg.jsp 3) Visit the e-Voting website of NSDL. Open web browser by typing the following URL:https://www.evoting.nsdl.com/ either on a Personal Computer or on a mobile. Once the home page of e-Voting system is launched, click on the icon “Login” which is available under ‘Shareholder/Member’ section. A new screen will open. You will have to

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enter your User ID (i.e. your sixteen digit demat account number hold with NSDL), Password/OTP and a Verification Code as shown on the screen. After successful authentication, you will be redirected to NSDL Depository site wherein you can see e-Voting page. Click on company name or e- Voting service provider name and you will be redirected to e-Voting service provider website for casting your vote during the remote e-Voting period or joining virtual meeting & voting during the meeting 4) For OTP based login you can click onhttps://eservices.nsdl.com/SecureWeb/evoting/evotinglogin.jsp. You will have to enter your 8-digit DP ID,8-digit Client Id, PAN No., Verification code and generate OTP. Enter the OTP received on registered email id/mobile number and click on login. After successful authentication, you will be redirected to NSDL Depository site wherein you can see e-Voting page. Click oncompany name or e-Voting service provider nameand you will be re-directed toe-Voting service provider websitefor casting your vote during the remote e-Voting period or joining virtual meeting & voting during the meeting.

Individual Shareholders (holding securities in demat mode) login through theirDepository Participants (DP)

You can also login using the login credentials of your demat account through your Depository Participant registered with NSDL/CDSL for e- Voting facility. After Successful login, you will be able to see e-Voting option. Once you click on e-Voting option, you will be redirected to NSDL/CDSL Depository site after successful authentication, wherein you can see e-Voting feature. Click on company name or e-Voting service provider name and you will be redirected to e-Voting service provider website for casting your vote during the remote e-Voting period or joining virtual meeting & voting during the meeting.

Important note: Members who are unable to retrieve User ID/ Password are advised to use Forget User ID and Forget Password option available at abovementioned website.

Helpdesk for Individual Shareholders holding securities in demat mode for any technical issues related to login through Depository i.e. CDSL and NSDL

Login type	Helpdesk details
Individual Shareholders holding securities in Demat mode withCDSL	Members facing any technical issue in login can contact CDSL helpdesk by sending a request at helpdesk.evoting@cdslindia.comor contact at toll free no. 1800 21 09911
Individual Shareholders holding securities in Demat mode withNSDL	Members facing any technical issue in login can contact NSDL helpdesk by sending a request at evoting@nsdl.co.in or call at : 022 - 4886 7000 and 022 - 2499 7000

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Step 2 : Access through CDSL e-Voting system in case of shareholders holding shares in physical mode and nonindividual shareholders in demat mode.

• (v) Login method for e-Voting and joining virtual meetings for Physical shareholders and shareholders other than individual holding in Demat form.

• 1) The shareholders should log on to the e-voting website www.evotingindia.com.

• 2) Click on “Shareholders” module.

• 3) Now enter your User ID

  • a. For CDSL: 16 digits beneficiary ID,

  • b. For NSDL: 8 Character DP ID followed by 8 Digits Client ID,

  • c. Shareholders holding shares in Physical Form should enter Folio Number registered with the Company.

• 4) Next enter the Image Verification as displayed and Click on Login.

• 5) If you are holding shares in demat form and had logged on to www.evotingindia.com and voted on an earlier e-voting of any company, then your existing password is to be used.

• 6) If you are a first-time user follow the steps given below:

	For Physical shareholders and other than individual shareholders holding shares in Demat.
PAN	Enter your 10 digit alpha-numeric *PAN issued by Income Tax Department (Applicable for both demat shareholders as well as physical shareholders).Shareholders who have not updated their PAN with the Company/Depository Participant are requested to use the sequence number sent by Company/RTA or contact Company/RTA.
Dividend Bank DetailsORDate of Birth (DOB)	Enter the Dividend Bank Details or Date of Birth (in dd/mm/yyyy format) as recorded in your demat account or in the company records in order to login. If both the details are not recorded with the depository or company, please enter the member id / folio number in the Dividend Bank details field.

(vi) After entering these details appropriately, click on “SUBMIT” tab.

• (vii) Shareholders holding shares in physical form will then directly reach the Company selection screen. However, shareholders holding shares in demat form will now reach ‘Password Creation’ menu wherein they are required to mandatorily enter their login password in the new password field. Kindly note that this password is to be also used by the demat holders for voting for resolutions of any other company on which they are eligible to vote, provided that company opts for e-voting through CDSL platform. It is strongly recommended not to share your password with any other person and take utmost care to keep your password confidential.

(viii) For shareholders holding shares in physical form, the details can be used only for e-voting on the resolutions contained in this Notice.

• (ix) Click on the EVSN for the relevant on which you choose to vote.

(x) On the voting page, you will see “RESOLUTION DESCRIPTION” and against the same the option “YES/NO” for voting. Select the option YES or NO as desired. The option YES implies that you assent to the Resolution and option NO implies that you dissent to the Resolution.

• (xi) Click on the “RESOLUTIONS FILE LINK” if you wish to view the entire Resolution details.

(xii) After selecting the resolution, you have decided to vote on, click on “SUBMIT”. A confirmation box will be displayed. If you wish to confirm your vote, click on “OK”, else to change your vote, click on “CANCEL” and accordingly modify your vote.

(xiii) Once you “CONFIRM” your vote on the resolution, you will not be allowed to modify your vote.

• (xiv) You can also take a print of the votes cast by clicking on “Click here to print” option on the Voting page.

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• (xv) If a demat account holder has forgotten the login password then Enter the User ID and the image verification code and click on Forgot Password & enter the details as prompted by the system.

• (xvi) There is also an optional provision to upload BR/POA if any uploaded, which will be made available to scrutinizer for verification.

• (xvii) Additional Facility for Non – Individual Shareholders and Custodians –For Remote Voting only.

• Non-Individual shareholders (i.e. other than Individuals, HUF, NRI etc.) and Custodians are required to log on

  • to www.evotingindia.com and register themselves in the “Corporates” module.

• A scanned copy of the Registration Form bearing the stamp and sign of the entity should be emailed to helpdesk.evoting@cdslindia.com.

• After receiving the login details a Compliance User should be created using the admin login and password. The Compliance User would be able to link the account(s) for which they wish to vote on.

• The list of accounts linked in the login will be mapped automatically & can be delink in case of any wrong mapping.

• It is Mandatory that, a scanned copy of the Board Resolution and Power of Attorney (POA) which they have issued in favour of the Custodian, if any, should be uploaded in PDF format in the system for the scrutinizer to verify the same.

• Alternatively Non Individual shareholders are required mandatory to send the relevant Board Resolution/ Authority letter etc. together with attested specimen signature of the duly authorized signatory who are authorized to vote, to the Scrutinizer and to the Company at the email address viz; pbmcs@patodiagroup.com, if they have voted from individual tab & not uploaded same in the CDSL e-voting system for the scrutinizer to verify the same.

INSTRUCTIONS FOR SHAREHOLDERS ATTENDING THE AGM THROUGH VC/OAVM & E-VOTING DURING MEETING ARE AS UNDER:

1. The procedure for attending meeting & e-Voting on the day of the AGM is same as the instructions mentioned above for e-voting.

2. The link for VC/OAVM to attend meeting will be available where the EVSN of Company will be displayed after successful login as per the instructions mentioned above for e-voting. Shareholders who have voted through Remote e-Voting will be eligible to attend the meeting. However, they wlll not be eligible to vote at the AGM.

3. Shareholders are encouraged to join the Meeting through Laptops / IPads for better experience.

4. Further shareholders will be required to allow Camera and use Internet with a good speed to avoid any disturbance during the meeting.

5. Please note that Participants Connecting from Mobile Devices or Tablets or through Laptop connecting via Mobile Hotspot may experience Audio/Video loss due to Fluctuation in their respective network. It is therefore recommended to use Stable Wi-Fi or LAN Connection to mitigate any kind of aforesaid glitches.

6. Shareholders who would like to express their views/ask questions during the meeting may register themselves as a speaker by sending their request in advance atleast 7 days prior to meeting mentioning their name, demat account number/folio number, email id, mobile number at (company email id). The shareholders who do not wish to speak during the AGM but have queries may send their queries in advance 7 days prior to meeting mentioning their name, demat account number/folio number, email id, mobile number at (company email id). These queries will be replied to by the company suitably by email.

7. Those shareholders who have registered themselves as a speaker will only be allowed to express their views/ask questions during the meeting.

8. Only those shareholders, who are present in the AGM through VC/OAVM facility and have not casted their vote on the Resolutions through remote e-Voting and are otherwise not barred from doing so, shall be eligible to vote through e-Voting system available during the AGM.

9. If any Votes are cast by the shareholders through the e-voting available during the AGM and if the same shareholders have not participated in the meeting through VC/OAVM facility, then the votes cast by such shareholders may be considered invalid as the facility of e-voting during the meeting is available only to the shareholders attending the meeting.

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PROCESS FOR THOSE SHAREHOLDERS WHOSE EMAIL/MOBILE NO. ARE NOT REGISTERED WITH THE COMPANY/DEPOSITORIES.

1. For Physical shareholders- please provide necessary details like Folio No., Name of shareholder, scanned copy of the share certificate (front and back), PAN (self attested scanned copy of PAN card), AADHAR (self attested scanned copy of Aadhar Card) by email to Company/RTA email id .

2. For Demat shareholders -, Please update your email id & mobile no. with your respective Depository Participant (DP)

3. For Individual Demat shareholders – Please update your email id & mobile no. with your respective Depository Participant (DP) which is mandatory while e-Voting & joining virtual meetings through Depository.

If you have any queries or issues regarding attending AGM & e-Voting from the CDSL e-Voting System, you can write an email to helpdesk.evoting@cdslindia.com or contact at toll free no. 1800 21 09911

All grievances connected with the facility for voting by electronic means may be addressed to Mr. Rakesh Dalvi, Sr. Manager, (CDSL, ) Central Depository Services (India) Limited, A Wing, 25th Floor, Marathon Futurex, Mafatlal Mill Compounds, N M Joshi Marg, Lower Parel (East), Mumbai - 400013 or send an email to helpdesk.evoting@cdslindia.com or call toll free no. 1800 21 09911.

By Order of the Board For PBM Polytex Limited

			GOPAL PATODIA
Place	:	Vadodara	Managing Director
Date	:	13.08.2025	(DIN: 00014247)

Statement as required under Regulation 36 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Section 102 of the Companies Act, 2013, as may be applicable.

ITEM NO. 4

The Cost Records and related statements of the Company are subject to audit as required under section 148 of the Companies Act, 2013 for which, on the recommendation of Audit Committee, M/s. K. C. Moondra & Associates, Cost Accountants, Vadodara (FRN No. 101814), has been appointed as Cost Auditor by the Board of Directors of the Company for the financial year 2025-26 at total remuneration of Rs. 60,000/- plus GST plus Out of pocket expenses (Out of pocket expenses to be defined as expenses for visiting factories or offices which will only include actual taxi charges and meal expenses), also including all charges of XBRL. The consent of the members is sought for ratification of remuneration payable to the Cost Auditor.

Pursuant to Section 148 of the Companies Act, 2013 read with the Companies (Audit and Auditors) Rules, 2014, members of the Company are required to ratify the remuneration to be paid to the Cost Auditors.

None of the Directors, Key Managerial Personnel and their relatives are, in any way, concerned or interested, financially or otherwise, in this resolution.

The Board recommends the Resolution set out under Item No. 4 of the Notice for approval of the Members as an Ordinary Resolution.

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ITEM NO. 5

To appoint Secretarial Auditors of the Company

The Board at its meeting held on 28[th] May, 2025, based on recommendation of the Audit Committee, after evaluating and considering various factors such as industry experience, competency of the audit team, efficiency in conduct of audit, independence, etc., has approved the appointment of M/s J J Gandhi & Co., Practising Company Secretaries, Vadodara, a peer reviewed firm (Firm Registration Number: S1996GJ018900) as Secretarial Auditors of the Company for a term of five consecutive years commencing from FY 2025-26 till FY 2029-30, subject to approval of the Members. The appointment of Secretarial Auditors shall be in terms of the amended Regulation 24A of the SEBI Listing Regulations vide SEBI Notification dated December 12, 2024 and provisions of Section 204 of the Act and Rule 9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.

M/s J J Gandhi & Co. is a well-known firm of Practising Company Secretaries based in Vadodara. Renowned for its commitment to quality and precision, the firm has been Peer Reviewed and Quality Reviewed by the Institute of Company Secretaries of India (ICSI), ensuring the highest standards in professional practices. M/s J J Gandhi & Co focussed on providing comprehensive professional services in corporate law, SEBI regulations, FEMA compliance, and allied fields, delivering strategic solutions to ensure regulatory adherence and operational efficiency. The firm provides its services to various prominent companies and their expertise has earned the trust of industry leaders across sectors like Listed Companies, Govt Companies, MNCs, and Public Sector Companies.

M/s J J Gandhi & Co. confirmed that the firm is not disqualified and is eligible to be appointed as Secretarial Auditors in terms of Regulation 24A of the SEBI Listing Regulations. The services to be rendered by M/s J J Gandhi & Co., as Secretarial Auditors is within the purview of the said regulation read with SEBI circular no. SEBI/ HO/CFD/CFD-PoD-2/CIR/P/2024/185 dated December 31, 2024.

The proposed fees in connection with the secretarial audit shall be 73,000/- plus applicable taxes and other out-of-pocket expenses for FY 2025-26, and for subsequent year(s) of their term, such fees as may be mutually agreed between the Board of Directors and M/s J J Gandhi & Co. In addition to the secretarial audit, M/s J J Gandhi & Co. shall provide such other services in the nature of certifications and other professional work, as approved by the Board of Directors. The relevant fees will be determined by the Board, as recommended by the Audit Committee in consultation with the Secretarial Auditors. The Board recommends the Ordinary Resolution as set out in Item No. 5 of this Notice for approval of the Members. None of the Directors and/or Key Managerial Personnel of the Company and/or their relatives are concerned or interested, in the Resolution set out in Item No. 5 of this Notice.

ITEM NO. 6

Shri Amit Patodia, Senior President cum CEO, is a qualified Textile Engineer and Gold Medalist from North Carolina State University of United States and possesses organizational capacity and ability for developing the overseas, as well as, domestic market. He has significantly contributed to the sales promotion and development of export market and has shown exceptional administrative ability. The Company had bad experience of Strike for a period of three and half months during the financial year 2016-17 by the Petlad Unit workers of the Company. Managing the things during this period of crisis, his devotion and winning over the situation was remarkable. Looking to the development and present circumstances his responsibilities and duties have considerably increased.

In order to provide adequate incentive to Shri Amit Patodia to continue to contribute all his mite in the development of the business of the Company, the Nomination and Remuneration Committee has recommended to suitably revise the remuneration payable to Shri Amit Patodia who happens to be a relative of a Director of the Company and performs function as Senior President cum Chief Executive Officer of the Company. It is proposed to increase his existing remuneration from Rs. 1,98,000/- per month in the Pay Scale of Rs. 1,86,000/- Rs. 12,000/- Rs. 2,46,000/-to Rs. 2,65,000/- per month with a increment of Rs. 12,000/- per month every completed year with effect from 01.10.2025 including all perquisites and benefits i.e. not

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exceeding Rs. 60,00,000/- (Rupees Sixty Lakh Only) per annum. House Rent is being reduced from 50% to 30%.

The Board of Directors has also approved the revision in salary of Shri Amit Patodia as recommended by the Nomination and Remuneration Committee in the Board Meeting held on 28[th] May 2025. He shall discharge such functions as are delegated to him by the Board of Directors and/or Managing Director(s) of the Company from time to time.

Under clause (f) of sub-section (1) of section 188 of the Companies Act 2013 read with Companies (Meetings of Board and its Powers) Rules, 2014, it is necessary to obtain prior consent of the Company by Resolution for holding or continue to hold office or place of profit of the company in any such office or place of profit carrying a total monthly remuneration exceeding Rs. 2,50,000/- and the person being appointed is a Related Party.

Information pursuant to the Rule 15 the Companies (Meetings of Board and its Powers) Rules, 2014:

1. Name of the Related Party:

Shri Amit Patodia.

2. Name of the Director or key managerial personnel who is related, if any:

Shri Gopal Patodia, Managing Director, being relative of the above referred person is concerned or interested in the above resolution.

3. Nature of Relationship:

Shri Amit Patodia is son of Managing Director, Shri Gopal Patodia.

4. Nature, material terms, monetary value and particulars of the contract or arrangement:

Total Remuneration is proposed Rs. 60,00,000/- per annum for the Senior President cum Chief Executive Officer of the Company, Shri Amit Patodia, who looks after all administrative activities, exports sales and supervision of other day to day activities of the Company as details in the draft agreement between the said Shri Amit Patodia and the Company.

5. Any other information relevant or important for the members to take a decision on the proposed resolution:

Shri Amit Patodia is employment of the Company as Senior President cum Chief Executive Officer since 2006 and is discharging his duties with all devotion and perfectness.

Shri Gopal Patodia, the Managing Director of the Company and Shri Amit Patodia, Sr. President cum Chief Executive Officer (Key Managerial Personnel) are concerned or interested in the resolution proposed under this item in as much as they are related to each other.

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Annexure – A Details of Directors seeking Appointment/Reappointment at the 106[th] Annual General Meeting pursuant to Regulation 36 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Secretarial Standard-II issued by the Institute of Company Secretaries of India (“ICSI”) are as under:

Sl. No.	Name of Director		Shri Krishan Kumar Patodia, Chairman		Shri Gopal Patodia, Managing Director
1	DIN (Director Identification Number)		00027335		00014247
2	Date of Birth		26.05.1945		12.12.1946
3	Age (in Years)		80		79
4	Date of First Appointment on the Board		12.06.1979		12.09.1978
5	Qualifications		B.Sc Text(Hons.)		B.Sc. B. Tech(Chemical)
6.	No. of shares held in Company as on 31stMarch,2025.		141028		27369
7.	Brief profile and nature of their expertise in specific functional areas and Skill & Capabilities.		Gold medalist in textile engineering. More than 58 years of rich experience in managing textile industries. Also he is Managing Director of Eurotex Industries and Exports Limited and Chairman of the Companysince 1984.		B.Sc., Chemical Engineer (first division). More than 52 years of experience in managing textile industry and marketing. He is Managing Director of the Company since 1978.
8.	Number of meetings of the Board attended duringtheyear 2024-25		1		7
9.	Directorship of other Companies		Eurotex Industries and Exports Ltd; Patodia Syntex Ltd; Maharashtra Fibres & Syntex Ltd; Eurospin Industries Ltd; Sambhu Investments Private Ltd; Rajiv Agencies LLP; Thrust Invest. & Mgt. Consult. LLP.; Mercury Gems Private Limited; Patodia CompanyPvt. Ltd.		Patodia Syntex Ltd; Shashank Investments Pvt Ltd; Trikon Investments Pvt Ltd; Sambhu Investments Pvt Ltd; Veepee Intrades Pvt Ltd
10.	Chairman of Committees of other Companies		CSR Committee, Eurotex Industries and Exports Limited		NIL
11.	Member of Committees of other Companies		Stakeholders Relationship Committee, Eurotex Industries and Exports Limited		NIL
12.	Relationship with other Directors, Manager and Key Managerial Personnel (“KMP”)		Brothers: Shri Gopal Patodia and Shri Mohan Kumar Patodia		Brothers: Shri Krishan Kumar Patodia, and Shri Mohan Kumar Patodia Son: Shri Amit Patodia – Senior President cum CEO
13.	Resignation as a Director from listed companies in the past three years		NIL		NIL

By Order of the Board For PBM Polytex Limited

Place : Vadodara Date : 13.08.2025

GOPAL PATODIA Managing Director (DIN: 00014247)

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PBM POLYTEX LIMITED DIRECTORS’ REPORT

To,

The Members,

Your Directors have pleasure in presenting the 106[th] Annual Report of the Company together with the Audited Standalone and Consolidated Statements of Accounts for the financial year ended 31[st] March, 2025.

1.

Financial Results

1. Financial Results	1. Financial Results	1. Financial Results	1. Financial Results
		(Rs. in Lakhs)
	Particulars
		2024-25	2023-24
	Earnings Before Interest,Tax,Depreciation and Amortization(EBITDA)	(214.93)	(418.41)
	Less:- Interest and Financial Charges	47.46	54.65
	Profit before depreciation and tax	(262.39)	(473.06)
	Less:- Depreciation and Amortization	367.64	365.85
	Profit Before Tax	(630.03)	(838.91)
	Less:- Provision for Taxation(Net)	0.35	12.55
		(629.68)	(826.36)
	Add:- Deferred Tax Assets	161.86	196.73
	Profit After Tax(PAT)	(467.82)	(629.63)
	Add:- Other Comprehensive Income	82.56	35.89
	Total Comprehensive Income for theyear	(385.26)	(593.74)
	Add:- Surplus brought forward	790.42	1384.16
	Amount available for Appropriation	405.16	790.42
	Less :- Appropriation:-
	General Reserve	NIL	NIL
	Dividend	NIL	NIL
	Total Appropriation	NIL	NIL
	Balance carried to Balance Sheet	405.16	790.42

2. DIVIDEND

Your Directors have decided not to declare any dividend for the FY 2024-25.

3. TRANSFER TO RESERVES

No amount has been transferred to General Reserves.

4. CHANGE IN THE NATURE OF BUSINESS

There was no change in the nature of business of the Company during the financial year 2024-25.

5. REVIEW OF BUSINESS OPERATIONS/STATE OF COMPANY’S AFFAIRS

Market Conditions and Cotton Price Volatility

PBM Polytex continues to operate under intense pressure due to persistent disparities between domestic and international cotton prices. As of August 2025 Indian cotton prices (Shankar-6 quality) are trading between ₹56,600 and ₹57,700 per candy , equivalent to 82–85 cents/lb , significantly above global benchmarks. Global cotton prices remain subdued, with the NY/ICE benchmark at 67 cents/lb and the A Index near 78 cents/lb , reflecting a stable but lower international market.

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However, the 50% tariff imposed by the United States on Indian textile exports with effective, August 27, has severely impacted export viability, particularly for yarn and ready-made garments.

Operational Challenges

Absenteeism remains a critical issue. Both units (Petlad and BLP) continue to face a shortage of skilled workers and high absenteeism, resulting in production losses. Industry-wide, absenteeism in spinning mills ranges from 11–20% daily , driven by strenuous working conditions and low job satisfaction. The HR department is actively recruiting and training apprentices to stabilize manpower and restore production efficiency.

Market Dynamics & Cost Pressures

Yarn Realizations remain under pressure due to Surplus domestic supply and Weak global demand, exacerbated by US tariffs. The Company has been unable to pass on elevated input costs to customers, leading to margin compression. However, measures are underway to reduce expenses across power, stores, and miscellaneous overheads.

Strategic Outlook

PBM Polytex is navigating a volatile macroeconomic and policy landscape. Key strategic priorities include Policy Advocacy : Supporting industry efforts to extend the cotton import duty waiver beyond September to sustain competitiveness; and Operational Efficiency : Intensifying cost control and workforce stabilization efforts to protect margins.

Management Commitment

Despite formidable challenges, the management remains focused on minimizing losses, restoring profitability and engaging with policymakers and industry bodies to shape a more favourable operating environment.

6. INDEPENDENT DIRECTORS’ DECLARATION

All the Independent Directors of the Company have given their declarations that they meet the criteria of Independence as prescribed under section 149(6) of the Companies Act, 2013.

7. DIRECTORS

In accordance with the provisions of Section 152 of the Companies Act, 2013 and Articles of Association of the Company, Shri Gopal Patodia (DIN: 00014247), Managing Director and Shri Krishan Kumar Patodia (DIN: 00027335), Director the Company are liable to retire by rotation at the ensuing Annual General Meeting (“AGM”) of the Company and being eligible, offer themselves for re-appointment.

The details in respect of qualification, area of expertise etc. of all the above appointee directors are provided in annexure to the notice. You are therefore in the interest of the company requested to accord your consent to these resolutions.

Neither of these Directors are disqualified under Section 164(2) of the Act.

8. KEY MANAGERIAL PERSONNEL

Pursuant to the provisions of Sections 2(51) and 203 of the Act read with Rule 8 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the following persons are acting as Key Managerial Personnel of the Company:-

Shri Gopal Patodia : Managing Director Shri Mohan Kumar Patodia: Managing Director cum Chief Financial Officer Shri Amit Patodia : Senior President cum Chief Executive Officer

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Ms. Kirti Chauhan : Company Secretary cum Compliance Officer upto 11[th] March 2025 Ms. Swati Billore : Company Secretary cum Compliance Officer w.e.f. 11[th] March 2025

9. FORMAL ANNUAL EVALUATION

Pursuant to the provisions of Section 134(3)(p) of the Act and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Board has carried out an annual performance evaluation of its own performance, Board’s Committees, as well as, Directors individually including performance of Independent Directors, after seeking inputs from all the Directors/Committee members and finds it satisfactory.

10. BOARD MEETINGS

The Board of Directors have met 7 times during the financial year 2024-25.

The details of Board Meetings held are disclosed in Corporate Governance Report appended to Directors’ Report.

11. DIRECTORS’ RESPONSIBILITY STATEMENT

Pursuant to the Provisions of Section 134(3)I of the Act, your Directors confirm that –

1. in the preparation of annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures;

2. the accounting policies adopted are consistently applied and judgments made and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year and of the profit of the company for the said period;

3. proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of this Act, for safeguarding the assets of the Company and for preventing & detecting errors & frauds and other irregularities;

4. annual accounts have been prepared on a going concern basis;

5. internal financial controls (as required by explanation to section 134(5)I of the Act) is being followed by the Company and that such internal financial controls are adequate and were operating effectively;

6. Proper systems have been devised to ensure compliance with all other applicable laws and that such systems are adequate and operating effectively.

12. SHARE CAPITAL

There was no change in the authorized/issued or paid up share capital of the company during the year.

13. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS UNDER SECTION 186 OF THE ACT

The Company had granted loan of Rs. Three Crores to its Associate Company Eurotex Industries & Exports Limited. As on 31[st] March 2025 the Loan amount outstanding was Rs. 36555452/- including the Interest Rs. 6555452/-. Further, the said loan has been repaid in full in the month of July 2025 and the interest amount of Rs. 3324384/- is outstanding as on 13[th] August 2025 i.e. the date of this report. Investments in mutual fund as on 31.03.2025 was NIL.

Short Term deposits with banks have been made, the details of which are given under Note pertaining to Cash and Bank Balances.

The Company is holding 46,00,000 Preference shares of Rs. 10/- each aggregating to Rs. 4.60 Crores in Eurotex Industries & Exports Limited. The said Company since last more than five years due to inadequate profit/loss has not declared dividend on Preference Shares.

All these investments including long term investments are within the limits prescribed under Section 186 of the Act.

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14. INDUSTRIAL RELATIONS

During the year under review, the Industrial relations remained cordial at both the Petlad and Borgaon Units of the Company.

15. DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013

The Company has, in place, an Anti-Sexual Harassment Policy in line with the requirements of The Sexual Harassment of Women at the Workplace (Prevention, Prohibition and Redressal) Act, 2013. Internal Complaints Committee (“Committee”) has been set up to redress the complaints received regarding sexual harassment.

Status of cases reported during the FY 2024-25:

cases reported during the FY 2024-25:
Particulars	No.
Number of complaints received duringthe FY 2024-25	0
Number of complaints resolved duringthe FY 2024-25	0
Number of complaintspendingover 90 days	0

16. COMPLIANCE WITH THE PROVISIONS OF MATERNITY BENEFIT ACT, 1961

The organization remains fully committed to upholding the rights and welfare of women employees as mandated under the Maternity Benefit Act, 1961. During the year, we have ensured strict adherence to all statutory provisions of the Act. The organization continues to foster a supportive and inclusive work environment, ensuring that all women employees are aware of and able to exercise their rights under the Act. No complaints or violations were reported during the year.

17. PARTICULARS OF EMPLOYEES AND RELATED DISCLOSURES

The information required pursuant to section 197 (12) of the Act read with Rule 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 in respect of the employees of the Company is given in Annexure “A” .

There is no Employee in the company who was / is drawing remuneration more than managerial personnel. Further, there is no employee who has drawn remuneration more than Rs. 102.00 Lakhs p.a. or 8.50 Lakhs p.m. as described under Rules Rule 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.

18. SUBSIDIARY AND ASSOCIATE COMPANIES

The Company does not have any Subsidiary Company. However, the Company holds 22,31,980 Equity Shares of Rs. 10/- per share and also 46,00,000; 6% Non-Cumulative Non-Convertible Redeemable Preference Shares of Rs. 10/- per share of Eurotex Industries and Exports Limited (CIN : L70200MH1987PLC042598) having its registered office at 809 – Raheja Chambers, 8[th] Floor, 213 – Nariman Point, Mumbai and Spinning Unit at Kolhapur. Form AOC – 1 as required under section 129(3) of the Act is attached as Annexure “A (1)”.

Accordingly, the said Eurotex Industries and Exports Limited is an Associate Company of our Company as defined under section 2(6) of the Act by virtue of the fact that our Company holds 25.5087% equity share of that Associate Company.

In pursuance of section 129 of the Companies Act, 2013 including any amendment and/or modifications thereof read with other applicable provisions of the Financial Statements of our Company and the associate company has been consolidated and accordingly, the share of our Company in Reserves and Surplus of the Associate Company upto the period 31.03.2014 has been accounted and exhibited under the head “Reserves and Surplus” as Capital Reserves, and the results from the F.Y. 2014-15 to 2024-25 have

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been incorporated in Consolidated Statement of Profit and Loss (of relevant years). The corresponding effect of the above has been given in the value of shares of the Associate Company held by us and has been shown under Note No. 5 of Balance Sheet of the Consolidated Balance Sheet under Investments (Non – Current).

The working of the Mill of the said Company is at grinding halt due to the continuous illegal strike by the workers since long and the company is suffering huge losses. As per the provisions of Industrial Disputes Act, 1947, services of the remaining 38 workers who were sitting idle were terminated as the mill was closed following the legal provisions from 30.03.2022. Now, Eurotex do not have any permanent workmen in the mills and only have a few essential staff. Presently, Eurotex has one major legal case with MSEB regarding a dispute already decided in its faovur by MERC and APTEL, Delhi and where the Honorable Supreme Court has lastly decided in its favour but the order has been wrongly interpreted by MSEB as being in their favour and the matter is now pending with Honorable APTEL, Delhi. Plant and machineries in the mills are being maintained in proper shape. Some of the machines in the Plant are being gradually sold as and when they get suitable buyers and price since yarn markets all over the world including in India continues to be in bad shape. The Real Estate business operations are continuing satisfactorily. The loans and dues of Banks and financial institutions have been fully paid.

The portion of our company’s share in profit/losses of the associate company has been shown in Form AOC-1 as required under the Act.

19. RELATED PARTY TRANSACTIONS

All Related Party Transactions as entered into during the financial year were at Arm’s Length basis and were in ordinary course of business. No materially significant related party transactions were entered/effected/undertaken by the Company with Promoters, Directors, Key Managerial Personnel, other designated persons or other related parties, which may have potential conflict with the interest of the Company at large.

All related party transactions were approved by the Audit Committee, as well as, the Board of Directors. The summary of such transactions is given in Note No. 41 of ‘Notes forming part of Accounts’.

The Policy on Related Party Transactions has been uploaded on the Company’s Website, web-link of which is https://pbmpolytex.com/upload/investor_lodr_reg/policy-on-related-party-transactions.pdf

Form AOC – 2 as required under section 134 (3) (h) of the Act read with rule 8(2) of the Companies (Accounts) Rules, 2014 is attached as Annexure “A (2)”.

During the year, the Company has made changes in the policy to bring them in line with the amendments in the SEBI Listing Regulations, 2015.

20. DISCLOSURE ON CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO.

In terms of Sub-section 3(m) of Section 134 of the Act read with Rule 12(1) of the Companies (Management and Administration) Rules, 2014, particulars relating to conservation of energy, technology absorption, foreign exchange earnings and outgo are given in Annexure “B” forming part of this report.

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21. ANNUAL RETURN AND EXTRACT OF ANNUAL RETURN

As per provisions of Section 92 of the Companies Act, 2013 read with Rules made thereunder, a draft Annual Return of the Company for the financial year 2024-25 is available on the website of the Company, web-link of which is https://pbmpolytex.com/investor-disc-reg-46-lodr/2/.

22. CORPORATE SOCIAL RESPONSIBILITY (“CSR”)

Pursuant to Section 135 of the Companies Act, 2013 and the Companies (Corporate Social Responsibility Policy) Rules, 2014, every company meeting the specified financial thresholds is required to constitute a Corporate Social Responsibility Committee and undertake CSR activities as prescribed.

For the financial year ended 2024-25, the provisions of Section 135 of the Companies Act, 2013 relating to Corporate Social Responsibility are not applicable to the Company. Accordingly, the Company has not constituted a CSR Committee, nor is it required to formulate a CSR Policy or undertake CSR initiatives during the year.

The Company continues to remain committed to ethical business practices, sustainability, and stakeholder engagement, and will comply with CSR requirements as and when they become applicable.

23. VIGIL MECHANISM / WHISTLE BLOWER POLICY

Your Company has a well-defined Whistle Blower Policy and has established Vigil Mechanism which provides adequate safeguards against victimisation of Reporting persons who follow such mechanism and also make provisions for direct access to the Chairman of Audit Committee in appropriate cases. The Vigil Mechanism / Whistle Blower Policy has been placed on the Company’s website www.pbmpolytex.com.

24. POLICY ON NOMINATION AND REMUNERATION

In compliance with the requirements of Section 178 of the Companies Act, 2013 and Regulation 19 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company has laid down a Nomination and Remuneration policy which has been uploaded on the Company’s website www.pbmpolytex.com.

The salient features of the NRC Policy are as under:-

• a.) Setting out the objectives of the Policy

• b.) Definitions for the purposes of the Policy

• c.) Policy for appointment and removal of Director, KMP and Senior Management

• d.) Policy relating to the Remuneration for the Managerial Personnel, KMP, Senior Management Personnel & other employees.

25. RISK MANAGEMENT POLICY

The Company has a structured Risk Management Policy. The Risk Management Process is designed to safeguard the organization from various risks through adequate and timely actions. It is designed to anticipate, evaluate and mitigate risks in order to minimize its impact on the business. The potential risks are inventoried and integrated with the management process so that they receive the necessary consideration during decision making. It is dealt with in greater details in the management discussion and analysis section.

26. COMMITTEES OF THE BOARD

The Company has already formed the following committees to ensure timely compliances and better corporate governance of all the applicable rules and regulations:

1) Audit Committee, 2) Nomination & Remuneration Committee and 3) Stakeholders’ Relationship Committee. The details about these committees are given in the Corporate Governance Report.

ANNUAL REPORT 2024-25

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27. INSURANCE

All the properties of the Company including plant and machinery, stocks etc. have been adequately insured. The Company has also taken adequate insurance cover for loss of profit and Standing Charges.

28. AUDITORS

A. Statutory Auditors

In compliance with the Companies (Audit and Auditors) Rules, 2014, the Members at the 103[rd] Annual General Meeting (AGM) of the Company, have appointed M/s. Mahendra N. Shah & Co., Chartered Accountants (FRN: 105775W), Ahmedabad as Statutory Auditors of the Company, for a consecutive years of five years from the conclusion of 103[rd] Annual General Meeting till the conclusion of the 108[th] Annual General Meeting.

B. Secretarial Auditors

Pursuant to the provisions of section 204 of the Act and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Company has appointed M/s. J J Gandhi & Co. (FRN: S1996GJ018900) a firm of Practicing Company Secretaries, Vadodara, as Secretarial Auditors for a period of 5 consecutive years from the FY 2025-26 to FY 2029-30, subject to approval in the ensuing Annual General Meeting of the Company to undertake Secretarial Audit of the Company. The Secretarial Audit Report from previous Secretarial Auditor M/s Samdani Shah and Kabra for the financial year 2024-25 is annexed herewith as Annexure “C” .

C. Cost Auditor

M/s. K. C. Moondra & Associates (FRN No. 101814), has been appointed as Cost Auditor for audit of cost records and statements for the financial year 2025-26 also. The proposed remuneration for the said financial year, as stated in the notice of the ensuing Annual General Meeting, is to be confirmed by the shareholders as required under section 148 of the Act.

Further the company has made and maintained proper Cost Records as specified by the Central Government under Section 148 (1) of the Companies Act, 2013 for its business activities carried out during the year.

D. Internal Auditors

Shri. Yegasubramaniam Iyer, (Membership No-045781), Chartered Accountants, Vadodara and M/s. D. P. Sarda & Co., (FRN: 117227W), Chartered Accountants, Nagpur have been appointed as Internal Auditors for conducting internal audit of Petlad and Borgaon Units of the Company respectively, for the financial year 2025-26.

Explanation or Comments on disqualifications, reservations, adverse remarks or disclaimers in the Auditors’ Reports ;

No disqualifications, reservations, adverse remarks or disclaimers have been reported in the Auditors’ Reports, requiring any explanation or comments by the Board of Directors of the Company.

29. REPORT ON CORPORATE GOVERNANCE AND MANAGEMENT DISCUSSIONS & ANALYSIS REPORT

The Company has complied with all the applicable requirements of Corporate Governance as stipulated in Regulations 17 to 27 and clauses (b) to (i) of Sub-Regulation (2) of Regulation 46 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. A Separate Report on Corporate Governance and a Certificate obtained from M/s. Samdani Shah & Kabra, Practicing Company Secretaries, regarding compliance with the conditions of Corporate Governance and Management Discussions & Analysis Report are annexed herewith with as Annexure “D” which forms part of this Report.

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30. MATERIAL CHANGES AND COMMITMENTS, IF ANY, AFFECTING THE FINANCIAL POSITION OF THE COMPANY

No material changes and commitments affecting the financial position of the Company have occurred during the financial year and upto the date of this Report.

31. DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS IMPACTING THE GOING CONCERN STATUS AND COMPANY’S OPERATIONS IN FUTURE

No significant and/or material orders were passed by any Regulator or Court or Tribunal impacting the going concern status and the Company’s operations in future.

32. INTERNAL CONTROL SYSTEMS

The Company has adequate internal control systems, commensurate with the size and scale of the Company. However, looking to the need of the time it has been decided to widen the scope of internal audit and accordingly internal auditors have been appointed for Petlad, as well as, Borgaon units of the Company who submit their periodical reports to the Board and their advices are adopted and needful is done, if required for better control.

33. UNCLAIMED EQUITY SHARES AND DIVIDEND

Pursuant to the provisions of Section 124 of the Companies Act, 2013 (“the said Act”), the declared dividends which remained unpaid or unclaimed for a period of seven years have been duly transferred by the Company to the Investor Education and Protection Fund (“IEPF”) established by the Central Government under Section 125 of the said Act.

The Company has uploaded the details of unpaid and unclaimed amounts lying in separate bank accounts named “PBM POLYTEX LIMITED UNPAID DIVIDEND ACCOUNT” upto the financial year 2016-17 on the Company’s website (www.pbmpolytex.com) and also on the Ministry of Corporate Affairs’ website: www.mca.gov.in.

The dividend for the years mentioned below, if remain unclaimed for consecutive seven years, will be transferred by the Company to IEPF:-

Financial Year	Date of Declaration of Dividend	Unclaimed Dividend as on 31.03.2025 (Rs.)
2017-18	18.09.2018	5,36,169.00
2018-19	30.09.2019	93,060.00
2019-20	No dividend declared	0.00
2020-21	30.09.2021	1,98,372.00
2021-22	28.09.2022	4,47,383.00
2022-23	No dividend declared	0.00
2023-24	No dividend declared	0.00
TOTAL		12,74,984.00

Pursuant to the provision of Section 124 (6) read with Rule 6 of Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 (the “IEPF Rules”) as amended, all the shares in respect of which dividend has/have remained unpaid or unclaimed for consecutive seven years, have to be transferred in the name of IEPF Authority.

Accordingly 16472 equity shares against 118 folios corresponding to the dividend for the financial year ended 31[st] March, 2017 which remained unclaimed for seven consecutive years have been transferred to the IEPF Authority after giving individual notices to the concerned shareholders and advertisement in Newspapers.

ANNUAL REPORT 2024-25

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In aggregate 188011 equity shares are lying with IEPF Authority as on 31.03.2025

The Company has uploaded the details of all shares transferred to the IEPF Authority on the Company’s website (www.pbmpolytex.com) and also on the Ministry of Corporate Affairs’ website: www.mca.gov.in.

The shareholders or their legal successors can claim back the dividend and all equity shares so transferred, from MCA after following the procedure laid down by MCA.

SECRETARIAL STANDARDS

All the applicable Secretarial Standards are being followed by the Company.

DEPOSITS

The Company has not accepted or continued any public deposits as contemplated under section 73 of the Act and the Companies (Acceptance of Deposits) Rules, 2014.

ACKNOWLEDGEMENTS

The bankers, and financiaL institutions have extended their full cooperation, support and valuable assistance to the Company. Your Directors place on record their appreciation for the same.

GOPAL PATODIA ASHOK PANDIT Place: Vadodara Managing Director (Independent Director) Date: 13.08.2025 (DIN: 00014247) (DIN: 08132980)

ANNUAL REPORT 2024-25

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ANNEXURE “A” TO THE DIRECTORS’ REPORT

Disclosure under Section 197(12) of the Act and Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014

1. Ratio of the remuneration of each Executive Director to the median remuneration of the Employees of the Company for the financial year 2024-25, the percentage increase in remuneration of each director, Chief Executive Officer and Chief Financial Officer during the financial year 2024-25:

Sl. No.	Name of Director / Key Managerial Personnel	Designation	Ratio of remuneration of each Director to median remuneration of Employees	Percentage increase in Remuneration during 2024-25 (%)
1.	Shri Gopal Patodia	ManagingDirector	25.21	-5.82
2.	Shri Mohan Kumar Patodia	ManagingDirector cum CFO	21.28	3.30
3.	Shri Amit Patodia	Senior President cum CEO	NA	6.94
4.	Ms. Swati Billore	CompanySecretary	NA	NA

Note:

• a. The Non-Executive Directors of the Company are entitled to sitting fees for meetings attended as per the statutory provisions. The details of remuneration of Non-Executive Directors have been exhibited in the Corporate Governance Report and is governed by the Nomination and Remuneration Policy. The ratio of remuneration and percentage increase for Non-Executive Directors’ Remuneration is therefore, not considered for the above purpose.

• b. Percentage increase in remuneration indicates annual target total compensation increases, as approved by the Nomination & Remuneration Committee of the Company during the financial year 2024-25.

• The percentage increase in the median remuneration of Employees for the financial year 2024-25 was 5.19% compared to previous year because of retirement of many old employees from service, recruitment of new employees in their place, reduction in benefits related to attendance which was much less during the year.

• The Company has 772 permanent Employees on the rolls of Company as on 31[st] March, 2025.

• It is hereby affirmed that the remuneration paid during the year is as per the Nomination and Remuneration Policy of the Company.

Disclosure under Rule 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, as amended from time to time.

• A) None of the employee was employed throughout the year who was in receipt of remuneration of more than Rs. 102.00 lakhs per annum.

• B) None of the employee was employed for part of the year who was in receipt of remuneration of more than Rs. 8.50 lakhs per month.

• C) No employee was in receipt of remuneration in the financial year which, in aggregate, or as the case may be, was at a rate which, in aggregate, is in excess of that drawn by the Managing Director(s) and holds by himself or along with his spouse and dependent children, two percent of the equity shares of the Company.

For PBM POLYTEX LIMITED For PBM POLYTEX LIMITED

GOPAL PATODIA ASHOK PANDIT Place: Vadodara (Managing Director) (Independent Director) Date: 13.08.2025 (DIN: 00014247) (DIN: 08132980)

ANNUAL REPORT 2024-25

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ANNEXURE “A(1)” TO THE DIRECTORS’ REPORT

Form AOC-I

Part “B”: Associates and Joint Ventures

Statement pursuant to Section 129 (3) of the Companies Act, 2013 related to Associate Companies:

	Name of Associate Company	Name of Associate Company	Name of Associate Company	Eurotex Industries and Exports Ltd
1.	Latest audited Balance Sheet Date			31.03.2025
2.	Shares of Associate held by the Company on the year end
	A.	No. of EquityShares		22,31,980
		Amount of Investment in Associate (Rs. In Lakhs)		545.91
		Extent of Holding (%)		25.5087
	B.	No. of 6% Non-Convertible Non-Cumulative Redeemable Preference Shares		46,00,000
		Amount of Investment in Associate (Rs. In Lakhs)		460.00
3.	Description of how there is significant influence			By virtue of more than 20% holding in paid up share capital and thereby the voting rights.
4.	Reason why the Associate is not consolidated			Results of Associate Company are consolidated.
5.	Net worth attributable to Shareholding as per latest audited Balance Sheet (Rs. In Lakhs)			NIL
6.	Profit/ (Loss) for theyear
	I.		Considered in Consolidation(Rs. In Lakhs)	NIL
	ii.		Not Considered in Consolidation (Rs. In Lakhs)	NIL

1. Names of associates or joint ventures which are yet to commence operations: NA

2. Names of associates or joint ventures which have been liquidated or sold during the year: NA NOTE:

AOC – 1 Part A “Subsidiaries” is not applicable as the Company does not have any subsidiary.

		For PBM POLYTEX LIMITED	For PBM POLYTEX LIMITED
		GOPAL PATODIA	ASHOK PANDIT
Place:	Vadodara	(Managing Director)	(Independent Director)
Date:	13.08.2025	(DIN: 00014247)	(DIN: 08132980)

ANNUAL REPORT 2024-25

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ANNEXURE “A(2)” TO THE DIRECTORS’ REPORT

Form No. AOC-2

(Pursuant to clause (h) of sub-section (3) of section 134 of the Act and Rule 8(2) of the Companies (Accounts) Rules, 2014)

Form for disclosure of particulars of contracts/arrangements entered into by the company with related parties referred to in sub-section (1) of section 188 of the Companies Act, 2013 including certain Arm’s Length transactions under third proviso thereto:

1. Details of contracts or arrangements or transactions not at arm’s length basis: All the transactions with related parties were at arm’s length.

2. Details of material contracts or arrangement or transactions at arm’s length basis: Details given in “Notes forming part of Accounts”. (Note No. 41 ).

For PBM POLYTEX LIMITED For PBM POLYTEX LIMITED

GOPAL PATODIA ASHOK PANDIT Place: Vadodara (Managing Director) (Independent Director) Date: 13.08.2025 (DIN: 00014247) (DIN: 08132980)

ANNUAL REPORT 2024-25

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ANNEXURE “B” TO THE DIRECTORS’ REPORT

ADDITIONAL INFORMATION AS REQUIRED UNDER SUB-SECTION 3 (M) OF SECTION 134 OF THE ACT AND RULE 8 OF THE COMPANIES (ACCOUNTS) RULES, 2014

(A) CONSERVATION OF ENERGY:

(i) Steps taken or impact on conservation of energy:

The management is very much cautious for minimizing/eliminating any losses in energy consumption. With such watch the consumption of electricity and its cost is absolutely under control.

(ii) Steps taken by the Company for utilizing alternate sources of energy:

Both the manufacturing units are purchasing power from respective State Electricity Boards. Whenever possible, to reduce the power cost, the company also purchases power from open excess sources.

(iii) The capital investment on energy conservation equipment:

Phase I Solar Plant : Commissioned at a cost of ₹1.82 Crore, generating 9.19 lakh units annually,

resulting in savings of ₹66 lakh per year. The project was fully funded without borrowings.

Phase II Solar Plant : Commissioned in May 2025 at a cost of ₹54 lakh, expected to generate 9.95 lakh units annually, with projected savings of ₹10 lakh per year.

(B) TECHNOLOGY ABSORPTION:

(i) Efforts made towards technology absorption:

The company has its own Quality Assurance Department which is equipped with instruments of latest technology for testing quality of raw material i.e. cotton, finished goods etc.

• (ii) The benefits derived like product improvement, cost reduction, product development or import substitution:

Since considerable quantity of company’s cotton yarn is exported, the quality of finished product is always kept within the acceptable norms. It is also kept in view that the cost of production does not go beyond the appropriate level.

(iii) In case of imported technology (imported during the last three years reckoned from the beginning of the financial year):- Not Applicable

(iv) Expenditure incurred on Research and Development:

Expenditure on In-House R & D, as and when incurred, is debited to the respective head of expenses in Statement of Profit and Loss

(C) Foreign Exchange Earning in terms of actual Inflows and actual Outflows:

(Rs. In Lacs)

Particulars		2024-25		2023-24
Foreign Exchange outgo in terms of Actual Outflows		59.22		23.83
Foreign Exchange earned in terms of Actual Inflows		4005.15		4995.40

For PBM POLYTEX LIMITED For PBM POLYTEX LIMITED

GOPAL PATODIA ASHOK PANDIT Place: Vadodara (Managing Director) (Independent Director) Date: 13.08.2025 (DIN: 00014247) (DIN: 08132980)

ANNUAL REPORT 2024-25

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ANNEXURE “C” TO THE DIRECTORS’ REPORT

Secretarial Audit Report

For the Financial Year ended March 31, 2025

[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule 9 of the

Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 and Regulation 24A of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015]

The Members,

PBM Polytex Limited

Opp. Railway Station, Petlad – 388 450, Gujarat, India.

We have conducted the Secretarial Audit of the compliance of applicable statutory provisions and the adherence to good corporate practices by PBM Polytex Limited (“Company”). Secretarial Audit was conducted in a manner that provided us a reasonable basis for evaluating the corporate conducts / statutory compliances and expressing our opinion thereon.

Based on our verification of the Company’s Books, Papers, Minute Books, Forms and Returns filed and other records maintained by the Company and also the information provided by the Company, its officers, agents and authorized representatives during the conduct of Secretarial Audit, we hereby report that, in our opinion, the Company has, during the audit period covering the Financial Year ended on March 31, 2025 (“review period”), complied with the statutory provisions listed hereunder and also that the Company has proper Board-Processes and Compliance-Mechanism in place to the extent, in the manner and subject to the reporting made hereinafter:

We have examined the Books, Papers, Minute Books, Forms and Returns filed and other records maintained by the Company for the review period, according to the provisions of:

• i. The Companies Act, 2013 (“Act”) and the rules made thereunder;

• ii. The Securities Contracts (Regulation) Act, 1956 and the rules made thereunder;

• iii. The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder;

• iv. Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to the extent of Foreign Direct Investment, Overseas Direct Investment and External Commercial Borrowings;

• v. The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India (“SEBI”) Act, 1992: -

• a. SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018; However, there were no actions / events pursuant to these regulations, hence not applicable.

• b. SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011;

• c. SEBI (Buy-back of Securities) Regulations, 2018; However, there were no actions / events pursuant to these regulations, hence not applicable.

• d. SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021; However, there were no actions / events pursuant to these regulations, hence not applicable.

• e. SEBI (Prohibition of Insider Trading) Regulations, 2015;

• f. SEBI (Registrars to an Issue and Share Transfer Agents) Regulations, 1993 regarding the Act and dealing with client;

• g. SEBI (Delisting of Equity Shares) Regulations, 2021; However, there were no actions / events pursuant to these regulations, hence not applicable;

ANNUAL REPORT 2024-25

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• h. SEBI (Depositories and Participants) Regulations, 2018;

• i. SEBI (Issue and Listing of Non-Convertible Securities) Regulations, 2021; However, there were no actions / events pursuant to these regulations, hence not applicable;

• j. SEBI( Debenture Trustees) Regulations, 1993; However, there were no actions / events pursuant to these regulations, hence not applicable;

• (a) Other sector specific laws as follows:

• (b) The Essential Commodities Act, 1955;

• (c) Ordinances issued by the Textile Commissioner (Textile Control Order).

We have also examined compliance with the applicable clauses / regulations of the following: -

• i. Secretarial Standards issued by The Institute of Company Secretaries of India; and

• ii. Listing Agreements entered into by the Company with BSE Limited read with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

• During the review period, the Company has complied with the provisions of the applicable Acts, Rules, Regulations, Guidelines, Standards, etc. as mentioned above.

We further report that;

• A. The Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non-Executive Directors and Independent Directors. The changes in the composition of the Board of Directors that took place during the review period were carried out in compliance with the provisions of the Act;

• B. Adequate notice is given to all the Directors to schedule the Board Meetings, Agenda and detailed Notes on Agenda were sent at least seven days in advance and a system exists for seeking and obtaining further information and clarification on the Agenda items before the meeting and for meaningful participation at the meeting;

• C. As per the minutes of the meetings duly recorded and signed by the Chairman, the decisions of the Board were unanimous and no dissenting views have been recorded;

• D. There are adequate systems and processes in the Company commensurate with the size and operations of the Company to monitor and ensure compliance with all the applicable Laws, Rules, Regulations and Guidelines;

• E. During the review period, there were no specific instances / actions in the Company in pursuance of the above referred Laws, Rules, Regulations, Guidelines, Standards etc. having major bearing on the Company’s affairs.

S. Samdani

Partner

Samdani Shah & Kabra

Company Secretaries FCS No. 3677 | CP No. 2863

ICSI Peer Review # 1079/2021 ICSI Unique Coe: P2008GJ016300 ICSI UDIN: F003677G000449529

Place: Vadodara | Date: May 28, 2025

This Report is to be read with our letter of even date which is annexed as Appendix A and forms an integral part of this report.

ANNUAL REPORT 2024-25

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Appendix A

The Members,

PBM Polytex Limited

Opp. Railway Station, Petlad – 388 450, Gujarat, India.

Our Secretarial Audit Report of even date is to be read along with this letter, that:

i. Maintenance of secretarial records and compliance of the provisions of Corporate and other applicable Laws, Rules, Regulations, Standards is the responsibility of the management of the Company. Our examination was limited to the verification and audit of procedures and records on test basis. Our responsibility is to express an opinion on these secretarial records and compliances based on such verification and audit.

ii. We have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the correctness of the contents of secretarial records. The verification was done on test basis to ensure that correct facts are reflected in secretarial records and we believe that the processes and practices we followed provide a reasonable basis for our opinion.

iii. Wherever required, we have obtained the management representation about the Compliance of Laws, Rules and Regulations, happening of events, etc.

iv. The Secretarial Audit Report is neither an assurance as to the future viability of the Company nor of the efficacy or effectiveness with which the management has conducted the Company’s affairs.

S. Samdani

Partner

Samdani Shah & Kabra

Company Secretaries FCS No. 3677 | CP No. 2863 ICSI Peer Review # 1079/2021 ICSI Unique Coe: P2008GJ016300 ICSI UDIN: F003677G000449529 Place: Vadodara | Date: May 28, 2025

ANNUAL REPORT 2024-25

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ANNEXURE “D” TO THE DIRECTORS’ REPORT

CORPORATE GOVERNANCE REPORT

1. COMPANY’S PHILOSOPHY ON CODE OF GOVERNANCE

Corporate Governance refers to a combination of laws, regulations, procedures, implicit rules and good corporate practices which ensures that the Company meets its obligations and fulfils its responsibilities towards shareholders, employees, government and others. The Company is committed on adopting the best possible practices.

The Company’s philosophy of corporate governance aims at the best possible in every sphere of operations consistent with good ethical standards.

2. BOARD OF DIRECTORS

A. Composition of the Board

As per requirements of section 149 of the Companies Act, 2013 (“the Act”) and Regulation 17 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations”), atleast 50% of the Board Members should be Independent. There is optimum combination of Executive, Non – Executive and Independent Directors including Woman Director and the Company fulfills the criteria. The Chairman of the Company is Non-Executive Promoter Director. The Composition of the Board is given hereunder:

Name of Directors	Designation	No. of Shares held as on 31st March 2025	Category	As on 31st March, 2025	As on 31st March, 2025	As on 31st March, 2025
				No. of Directorship in other Companies	#Committee(s) Position in other Companies
					Member	Chairperson
Shri Krishan Kumar Patodia	Chairman	141028	Promoter – Non Executive Director	7	1	0
Shri Gopal Patodia	Managing Director	27369	Promoter – Executive Director	5	0	0
Shri Hari Prasad Siotia	Director	199280	Promoter – Non Executive Director	4	1	1
Shri Mohan Kumar Patodia	Managing Director cum CFO	67998	Promoter – Executive Director	3	0	0
Shri Ashok Pandit	Director	0	Independent Director	0	0	0
Shri Rakesh Todi	Director	13227	Independent Director	0	0	0

ANNUAL REPORT 2024-25

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Shri Chirayush Patel	Director	0	Independent Director	0	0	0
Ms. Amishal Modi	Director	0	Independent Director (Woman Director)	0	0	0

# Only Committee position of Audit Committee and Stakeholders’ Relationship Committee have been considered.

B. Seven Board meetings were held during the FY 2024-25 on the dates mentioned below:

Dates on which Board Meetings were held	Total strength of Board	No. of Directors Present
29.05.2024	8	5
13.08.2024	8	8
08.10.2024	8	3
13.11.2024	8	5
31.12.2024	8	5
14.02.2025	8	4
10.03.2025	8	3

C. Attendance of each Director present at the Board Meetings and Last Annual General Meeting (“AGM”):-

Name of the Directors			Attendance at Board Meetings held on	Attendance at Board Meetings held on	Attendance at Board Meetings held on	Attendance at Board Meetings held on
	29.05. 2024	13.08. 2024	08.10. 2024	13.11. 2024	31.12. 2024	14.02. 2025	10.03. 2025	Attendance at AGM held on 27.09.2024
Shri Krishan Kumar Patodia	Leave of Absence		Leave of Absence	Leave of Absence	Leave of Absence	Leave of Absence	Leave of Absence	Leave of Absence
Shri Gopal Patodia								
Shri Hari Prasad Siotia	Leave of Absence		Leave of Absence	Leave of Absence	Leave of Absence	Leave of Absence	Leave of Absence	Leave of Absence
Shri Mohan Kumar Patodia	Leave of Absence		Leave of Absence	Leave of Absence	Leave of Absence	Leave of Absence	Leave of Absence	
Shri Ashok Pandit								
Shri Rakesh Todi			Leave of Absence				Leave of Absence	
Shri Chirayush								

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Patel								Leave of Absence
Ms. Amishal Modi			Leave of Absence			Leave of Absence	Leave of Absence

D. Directorship in	other Listed Companies:-
Name of Directors	Name of Listed Companies	Category of Directorship
Shri Krishan Kumar Patodia	M/s. Eurotex Industries and Exports Ltd.	Chairman and Managing Director
Shri Gopal Patodia	--	--
Shri Hari Prasad Siotia	M/s. Eurotex Industries and Exports Ltd.	Non-Executive Director
Shri Mohan Kumar Patodia	--	--
Shri Ashok Pandit	--	--
Shri Rakesh Todi	--	--
Shri Chirayush Patel	--	--
Ms. Amishal Modi	--	--

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(i) Key Board qualifications, expertise and attributes:

SKILLS/ EXPERTISE/ COMPETENCE OF THE BOARD OF DIRECTORS

Leadership -The capacity to set and achieve challenging goals, take fast and decisive action when needed, outperform the competition, and inspire others to perform at their highest possible level. The Chairman Shri Krishan Kumar Patodia and Managing Directors Shri Goal Patodia and Shri Mohan Kumar Patodia have vast experience in running of textile industry. They lead the whole administration and Senior personnel of the company at every point and on every problem. Shri Gopal Patodia, and Shri Mohan Kumar Patodia, (Managing Directors) and Audit Committee Chairman, Shri Ashok Pandit and other directors are well versed in techniques and requirements of Corporate Governance.

Corporate Finance - Managing sources and deployment of funds to enable the best returns both for the long and short term so as to increase the value of the Corporate to the stakeholders. Shri Gopal Patodia and Shri Mohan Kumar Patodia Managing Directors of the company are having vast knowledge and experience of managing finance and they monitor it on day to day basis.

Sales and marketing - Generating revenue from the operations of the Corporate. The role of Marketing is to create market awareness, preference and demand for the Products of the Corporate. Sales is responsible for converting that demand into actual sales. Other than the Chairman and the Managing Directors the other Independent Directors, Shri Rakesh Todi and Shri Chirayush Patel are experts in marketing and have rich knowledge of managing business.

Governance - The collection of mechanisms, processes and relations by which Corporate is governed. Corporate Governance is the combination of rules, processes and laws by which businesses are operated, regulated or controlled. Shri Gopal Patodia, and Shri Mohan Kumar Patodia, (Managing Directors) and Audit Committee Chairman, Shri Ashok Pandit and other directors are fully acquainted with requirements of Corporate Governance.

Technology – The combination of techniques, skills, methods and processes used in the production of goods or services or in the accomplishment of objectives. The chairman Shri Krishan Kumar Patodia is textile gold medalist and Managing Director Sri Gopal Patodia is Chemical Engineer (First Division). Both of them are highly experienced in textile technology.

International business - Encompasses all commercial activities that take place to promote the transfer of goods, services, resources, people, ideas and technologies across national boundaries. Shri Krishan Kumar Patodia, Chairman and Shri Gopal Patodia and Shri Mohan Kumar Patodia, Managing Directors are all in the business of yarn sales since very long time. The company and these three directors are having much knowledge and experience in export market. The company is exporting considerable quantity of its product since the year 1984.The chairman is also managing 100% export oriented unit namely Eurotex Industries and Exports Ltd. They are always in touch with foreign buyers.

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Disclosure of relationships between Directors inter-se

Shri Krishan Kumar Patodia, Shri Gopal Patodia and Shri Mohan Kumar Patodia are related to each other. No other director is relative of any other director(s).

Confirmation on the independence of the Independent Directors

The Board of Directors hereby confirm that in their opinion, the Independent Directors fulfil the conditions specified in the Listing Regulations and are Independent of the Management.

COMMITTEES OF THE BOARD

With a view to have more focused attention on business and for better governance and accountability, the Board has constituted various mandatory committees viz. Audit Committee, Nomination and Remuneration Committee and Stakeholders Relationship Committee. The term of reference of these Committees are determined by the Board and their relevance is reviewed from time to time.

3. AUDIT COMMITTEE

(i) Terms of Reference

The Audit Committee acts as a link between the Statutory Auditors, Internal Auditors and the Board of Directors. Its purpose is to assist the Board in fulfilling its responsibilities of monitoring financial reporting process, reviewing the Company’s established systems and processes for internal financial controls, governance and reviewing the Company’s Statutory and Internal Audit activities. The Committee is governed by a Charter, which is in line with the regulatory requirements mandated by the Act and Listing Regulations.

(ii) Composition

The Audit Committee (as mentioned below) consists of five Non-Executive Directors, out of which four (4) are Independent Directors. All the members of Audit Committee are financially literate and majority of them are specialized in accounting and financial management. The constitution of Audit Committee meets with the requirements prescribed under Section 177 of the Act and Listing Regulations.

Name of Committee Members	Category
Shri Ashok Pandit	Chairman, Independent Director
Shri Hari Prasad Siotia	Member,Non-Executive Director
Shri Rakesh Todi	Member,Independent Director
Shri Chirayush Patel	Member, Independent Director
Ms. Amishal Modi	Member, Independent Director

The Chairman of Audit Committee was present at the last Annual General Meeting to answer the shareholders’ queries through video conference.

Ms. Swati Billore acts as the Secretary of the Committee.

(iii) Meetings

During the year, the Audit Committee has met Six times. Attendance of each Committee member at the meetings were as follows:

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Name of Committee Members	Category	Attendance at the Audit Committee Meetings held on	Attendance at the Audit Committee Meetings held on	Attendance at the Audit Committee Meetings held on	Attendance at the Audit Committee Meetings held on	Attendance at the Audit Committee Meetings held on	Attendance at the Audit Committee Meetings held on
		29.05.24	13.08.24	08.10.24	13.11.24	31.12.24	14.02.25
Shri Ashok Pandit	Chairman, Independent Director						
Shri Hari Prasad Siotia	Member, Non – Executive Director	Leave of Absence		Leave of Absence	Leave of Absence	Leave of Absence	Leave of Absence
Shri Rakesh Todi	Member, Independent Director			Leave of Absence			
Shri Chirayush Patel	Member, Independent Director						
Ms. Amishal Modi	Member, Independent Woman Director			Leave of Absence			Leave of Absence

The Internal Auditors and Statutory Auditors are permanent invitees at the meetings. The terms of reference of Audit Committee are in accordance with the section 177 of the Act and Listing Regulations.

The Company has system and procedures in place to ensure that the Audit Committee mandatorily review:

• Management discussion and analysis of financial condition and results of operations;

• All Related Party Transactions submitted by management;

• Management letters / letters of internal control weaknesses issued by the Statutory Auditor;

• Internal Audit Reports relating to internal control weaknesses; and

• The appointment, removal and terms of remuneration of the Chief Internal Auditor.

• Statement of deviation, if applicable

3. NOMINATION AND REMUNERATION COMMITTEE AND REMUNERATION OF MANAGERIAL PERSONNEL AND SENIOR EXECUTIVES

(i) Terms of reference

Remuneration of employees largely consists of basic remuneration and perquisites. The components of total remuneration vary for different cadres and are governed by industry pattern, qualifications and experience of the employee (concerned), responsibilities handled, individual performance etc. The objectives of the Nomination and Remuneration Policy are to motivate employees to excel in their performance, recognize their contribution, and retain talent in the organization and reward merit.

The Nomination and Remuneration Committee shall act in accordance with the terms of reference which inter alia, include:

• a) To identify persons who are qualified to become Directors and who may be appointed in senior management in accordance with the criteria laid down and to recommend to the Board their appointment and/or removal;

• b) To carry out evaluation of every Director’s performance;

• c) To formulate the criteria for determining qualifications, positive attributes and independence of a Director, and recommend to the Board a policy, relating to the remuneration for the Directors, key managerial personnel and other employees;

• d) To formulate the criteria for evaluation of Independent Directors and the Board of Directors;

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• e) To devise a policy on Board diversity;

• f) To recommend/review remuneration of the Managing Director(s), Whole-time Directors and other senior management personnel based on their performance and defined assessment criteria;

• g) whether to extend or continue the term of appointment of the independent director, on the basis of the report of performance evaluation of independent directors;

• h) For every appointment of an independent director, to evaluate the balance of skills, knowledge and experience on the Board and on the basis of such evaluation, prepare a description of the role and capabilities required of an independent director. The person recommended to the Board for appointment as an independent director shall have the capabilities identified in such description. For the purpose of identifying suitable candidates, the Committee may: a. use the services of an external agencies, if required;

  • b. consider candidates from a wide range of backgrounds, having due regard to diversity; and

• c. consider the time commitments of the candidates;

• i) #To carry out any other function as is mandated by the Board from time to time and / or enforced by any statutory notification, amendment or modification, as may be applicable;

• j) To perform such other functions as may be necessary or appropriate for the performance of its duties.

#The terms of reference at point no. (i) are effective from January 1, 2022.

(ii) Composition

The Nomination and Remuneration Committee consists of five Non-Executive Directors as mentioned below.

below.
Name of Committee Members	Category
Shri Ashok Pandit	Chairman, Independent Director
Shri Hari Prasad Siotia	Member,Non-Executive Director
Shri Rakesh Todi	Member, Independent Director
Shri Chirayush Patel	Member, Independent Director
Ms. Amishal Modi	Member, Independent Director

Ms. Swati Billore acts as the Secretary of the Committee.

The appointments and remuneration of all the Managerial Personnel and top executives are decided on the recommendation of the Committee.

(iii) Meetings

During the year, the Nomination and Remuneration Committee has met four times. Attendance of each Committee member at the meetings were as follows:

Name of Committee Members	Category	Attendance at the Nomination and Remuneration Committee Meetings held on	Attendance at the Nomination and Remuneration Committee Meetings held on	Attendance at the Nomination and Remuneration Committee Meetings held on	Attendance at the Nomination and Remuneration Committee Meetings held on
		29.05.2024	13.08.2024	13.11.2024	10.03.2025
Shri Ashok Pandit	Chairman, Independent Director				
Shri Hari Prasad Siotia	Member, Non – Executive Director	Leave of Absence		Leave of Absence	Leave of Absence

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Shri Rakesh Todi	Member, Independent Director				Leave of Absence
Shri Chirayush Patel	Member, Independent Director				
Ms. Amishal Modi	Member, Independent Woman Director				Leave of Absence

The Chairman of Nomination and Remuneration Committee was present at the last Annual General Meeting to answer the shareholders’ queries through video conference.

POLICY FOR SELECTION AND APPOINTMENT OF DIRECTORS & SENIOR EXECUTIVES AND THEIR REMUNERATION

The remuneration of Managing Directors is decided as per the applicable Schedule and Sections of the Act, as amended from time to time on recommendation of the Nomination and Remuneration Committee and approved by the Board of Directors subject to the approval of shareholders and other authority(ies), if required.

The remuneration of Senior Executives is also decided by the Board of Directors on the recommendation of the Nomination and Remuneration Committee and also subject to the sanction of shareholders, if any. Senior Executive holds Place of Profit.

The selection and appointment of the Whole Time Directors, other directors and Top Executives is done on the basis of their experience, qualifications and knowledge of the concerned field.

Performance evaluation criteria for Independent Directors:

All the Independent Directors of the Company have efficiently played their roles and discharged their responsibilities for the benefit of the Company as a whole. Based on formal and informal appraisals, all the Independent Directors have played vital role in ensuring good corporate governance efficiency.

DETAILS OF REMUNERATION PAID / PAYABLE TO EXECUTIVE AND NON-EXECUTIVE DIRECTORS

Remuneration of Whole Time / Executive Directors

Remuneration paid/accrued to the Executive Directors for the financial year ended March 31, 2025 is as follows

					(Amount in Rs.)	(Amount in Rs.)
Name of Managing Director	Salary	Perquisites	Commission	Incentives	Other	Total
Shri Gopal Patodia	3254000	1841645	--	325400	975000	6396045
Shri Mohan Kumar Patodia	2280000	2243836	--	228000	646000	5397836
TOTAL	5534000	4085481	--	553400	1621000	11793881

Two Managing Directors namely Shri Gopal Patodia and Shri Mohan Kumar Patodia have been reappointed as such for the period of three year from 01.04.2024 to 31.03.2027 by the shareholders at the Annual

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General Meeting of the company held on 25.09.2023 on recommendations of Nomination & Remuneration Committee on approval of the Board of Directors.

Remuneration of Non-Executive Directors

Non-Executive Directors including Independent Directors are paid sitting fees only for attending the meetings of the Board of Directors and Committees thereof within the limits prescribed under the Act and Articles of Association of the company. No criteria of making payment to Non-Executive Directors is required to be fixed as they are paid only sitting fees. Details of remuneration paid to Non-Executive Directors during financial year 2024-25 are as follows:

Name of Directors	Sitting Fees(Rs.)
Shri Krishan Kumar Patodia	15000
Shri Hari Prasad Siotia	45000
Shri Ashok Pandit	240000
Shri Rakesh Todi	150000
Shri Chirayush Patel	240000
Ms. Amishal Modi	120000

The company has not done any transaction with any of the above Non-Executive Directors except reimbursement of actual travelling expenses incurred for attending Board Meeting(s)/Committee Meeting(s) and/or Annual General Meeting during the year ended March 31, 2025.

The Company does not have any Stock Option Scheme.

Both the Managing Directors have agreements with the Company for the period of three consecutive years which are renewed after every three years on their reappointment.

Both the Managing Directors shall be paid Incentive upto 10% of the Salary as may be decided by Board from time to time. Further there is no separate provision for notice period or payment of severance fees to the Managing Directors.

4. STAKEHOLDERS RELATIONSHIP COMMITTEE

(A) Terms of reference

Stakeholders Relationship Committee is constituted in line with the provisions of Regulation 20 of the listing Regulations and Section 178 of the Act.

• 1) To consider and resolve the grievances of security holders.

• 2) To consider and approve issue of share certificates, transfer, transmission of securities etc.

(B) .The Stakeholders Relationship Committee (“Committee”) consists of the following Directors:

Name of Committee Members	Category
Shri Ashok Pandit	Chairman,Independent Director
Shri Krishan Kumar Patodia	Member,Non-Executive Director
Shri Hari Prasad Siotia	Member,Non – Executive Director
Shri Gopal Patodia	Member,Executive Director
Shri Rakesh Todi	Member,Independent Director
Shri Chirayush Patel	Member,Independent Director

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This Committee also looks into the grievances lodged by the Shareholders. No complaints have been received from shareholders during the year 2024-25.

The Chairperson of the Committee, Shri Ashok Pandit was present at the last Annual General Meeting to answer the shareholders’ queries through video conference.

The meetings of the Committee were held on 29.05.2024, 13.08.2024, 13.11.2024 and 14.02.2025.

Ms. Swati Billore, Company Secretary is the Compliance Officer of the Company.

(C) The Company has appointed M/s. MUFG Intime India Private Limited ., having its Vadodara Office at “Geetakunj”

1, Bhakti Nagar Society, Behind ABS Tower, Old Padra Road, Vadodara – 390 015 India and registered office at C-101, 247 Park, LBS Marg, Vikhroli (West), Mumbai – 400083, Maharashtra, India as Registrar and Share Transfer Agent .

5. CORPORATE SOCIAL RESPONSIBILITY (“CSR”) COMMITTEE

For the financial year 2024-25, the provisions of Section 135 of the Companies Act, 2013 relating to Corporate Social Responsibility are not applicable to the Company. Accordingly, the Company has not constituted a CSR Committee.

6. GENERAL BODY MEETINGS

Details about location, dates and details of the Special Resolutions passed at the previous three AGMs are as under:

Financial Year	Meeting and Venue	Day, Date and Time	Special Resolutions passed
2021-22	103rd AGM through video conferencing (VC)/Other Audio Visual Means (OAVM)	Wednesday, 28.09.2022 at 11:00 A.M.	To approve revision in remuneration payable to Shri Amit Patodia, Senior President cum Chief Executive Officer. To reappoint Shri Ashok Pandit (DIN: 08132980) as an Independent Director of the Company for the second term of 5 consecutive years. To appoint Ms. Amishal Modi (DIN: 09661312) as an Independent Director of the Company to hold office for a term of 5 consecutive years. To approve the revision through increase in the remuneration payable to Shri Gopal Patodia (DIN: 00014247) as Managing Director of the company. To approve the revision through increase in the terms of remuneration payable to Shri Mohan Kumar Patodia (DIN: 00035381) as a Managing director of the company.

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2022-23	104th AGM through video conferencing (VC)/Other Audio Visual Means (OAVM)	Monday, 25.09.2023 at 11:00 A.M.	To Consider Re-appointment of Shri Mohan Kumar Patodia (DIN: 00035381) as Managing Director of the Company for a period of 3 years from 1st April 2024. To Consider Re-appointment of Shri Gopal Patodia (DIN: 00014247) as Managing Director of the Company for a period of 3 years from 1st April 2024. To reappoint Shri Rakesh Todi (DIN: 08476512) as an Independent Director of the Company for the second term of 5 consecutiveyears.
2023-24	105th AGM through video conferencing (VC)/Other Audio Visual Means (OAVM)	Friday, 27.09.2024 at 11:00 A. M	To reappoint Shri Chirayush Indrajitbhai Patel (DIN: 08690998) as an Independent Director of the Company for the second term of 5 consecutive years

Whether any special resolution was passed through Postal Ballot last year – No

Whether any Special Resolution is proposed to be conducted through Postal Ballot this year – No

7. INDEPENDENT DIRECTORS’ MEETING

During the year under review, all the Independent Directors of the Company met One time i.e. on 13.08.2024, to discuss and evaluate :-

• a.) the performance of Non-Independent Directors and the Board as a whole;

• b.) the performance of the Chairperson of the Company, taking into account the views of Executive Directors and Non-Executive Directors;

• c.) the quality, quantity and timeliness of flow of information between the Company’s Management and the Board that is necessary for the Board to effectively and reasonably perform their duties.

• d.) To take note of applicable provisions of The Act, and rules made thereunder and to do needful in the matter.

Based on the disclosures received from all the independent directors and also in the opinion of the Board, the independent directors have fulfilled the conditions specified in the Act, SEBI Listing Regulations and are independent of the management.

The details of the Familiarization Programme imparted to Independent Directors is available on Company’s Website, at https://pbmpolytex.com/upload/investor_lodr_reg/details-of-familiarization-programmeconverted-pdf-1-new.pdf

8. RELATED PARTY TRANSACTIONS

The Policy on Related Party Transactions is available on Company’s Website, web-link of which is https://pbmpolytex.com/upload/investor_lodr_reg/policy-on-related-party-transactions.pdf.

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9. DISCLOSURES

A. Disclosure on Materially Significant Related Party Transactions that may have potential conflict with the interests of the company at large:

There are no materially significant related party transactions made by the Company with its Promoters, Directors or Management, their subsidiaries or relatives, etc., that may have potential conflict with the interests of the Company at large.

However, the Company has taken on rent- Offices, Godowns (for storing material ) and Residential Premises (for employees) in and outside Gujarat which belong to Related Parties namely Sambhu Inv. Pvt. Ltd., M/s Murarilal Mahendrakumar, Eurotex Industries & Exports Ltd., Patodia Syntex Limited, M/s Dharamchand Kesardeo, M/s Brijlal Purushottamdas and M/s B L Patodia Family Trust, to whom rent is paid at reasonable rates and sale and purchase transactions have also been made with Eurotex Industries & Exports Ltd. which all are on Arm’s Length Basis.

Further, the Company has given on rent a small room for office use in Premises of Registered Office of the company to Shashank Investments Pvt. Ltd., Chandramauli Global Ventures LLP, Veepee Intrades Pvt. Ltd. and Suragini Enterprises LLP, from whom rent is received at reasonable rates which are on Arm’s Length Basis.

B. Details of non-compliances by the Company, penalties and strictures imposed on the Company by Stock Exchange or SEBI or any Statutory Authority, on any matter related to capital markets during the last three years:

The Company has complied with all the requirements of Listing Agreement entered into with BSE, as well as, the Listing regulations and guidelines of SEBI. There were no strictures or penalties imposed either by SEBI or BSE or any Statutory Authority for non – compliance of any matter (s) related to the capital markets during the last three years.

C. Whistle Blower Policy / Vigil Mechanism:

A Vigil Mechanism provides adequate safeguards against victimization of persons who use such mechanism for reporting genuine concerns. It also makes provision for direct access to the Chairman of the Audit Committee. Web link for Whistle Blower Policy / Vigil Mechanism is https://pbmpolytex.com/upload/investor_lodr_reg/whistle-blower-or-vigil-mechanism-policy.pdf. As per the Policy, no person has been denied access to the Chairman of Audit Committee.

D. Policy for determining material subsidiaries: The Company does not have any Subsidiary Company. Therefore, requirement of devising such policy does not apply to the Company.

E. Certificates from Company Secretary in Practice: The following certificates as issued by Shri S. Samdani, Partner of M/s. Samdani Shah & Kabra, a firm of Practicing Company Secretaries, Vadodara are enclosed to this Report:

• (a) Compliance Certificate regarding compliance of conditions of Corporate Governance; and

(b) Certificate that none of the Directors on the Board of the Company have been debarred or disqualified from being appointed or continuing as directors of companies by SEBI / Ministry of Corporate Affairs or any such statutory authority.

F. Details of utilization of funds raised through preferential allotment/qualified institutions placement as specified under Reg. 32(7A) of the Listing Regulations:

The Company has, during the year, not raised any funds through preferential allotment or qualified institutions placement as specified under the Listing Regulations.

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G. Fees paid to Statutory Auditors:

The Company has, during the year, paid an amount of Rs. 5,50,000/- ( Rupees Five Lakhs Fifty Thousand only) excluding GST to its Statutory Auditors M/s. Mahendra N. Shah & Co., Chartered Accountants as approved by the shareholders.

H. Disclosures under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013:

Number of complaints filed duringthe Financial Year 2024-25	NIL
Number of complaints disposed off duringthe Financial Year 2024-25	NIL
Number of complaintspendingas at the end of the Financial Year 2024-25	NIL

I. Disclosure of compliance with corporate governance requirements specified in Regulation 17 to 27 and clauses (b) to (i) of sub-regulation (2) of Regulation 46 of the Regulations:

Regulation No.	Particulars	Compliance Status (Yes or No)
17	Board of Directors	YES
17A	Maximum number of Directorship	YES
18	Audit Committee	YES
19	Nomination and Remuneration Committee	YES
20	Stakeholders RelationshipCommittee	YES
21	Risk Management Committee	N. A.
22	Vigil Mechanism	YES
23	Related PartyTransactions	YES
24	Corporate Governance requirements with respect to subsidiaryof the Company	N. A.
24A	Secretarial Audit and Secretarial Compliance Report	YES
25	Obligations with respect to Independent Directors	YES
26	Obligations with respect to employees including senior management, key managerial persons, directors and Promoters	YES
27	Other Corporate Governance Requirements	YES
46(2) (b)to(i)	Website	YES

J. Compliance with the Listing Regulations

The Company has adopted and complied with mandatory requirements of the Listing Regulations. Some of the following non-mandatory requirements have also been complied with.

NON-MANDATORY REQUIREMENTS:

(i) Reporting of Internal Auditor

Internal Auditors of the Company submit their reports directly to the Audit Committee regularly.

(ii) Audit Qualification / Modified Opinion(s)

There is no Audit Qualification / Modified Opinion(s) in the Audit Reports by the Auditor.

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(iii) Disclosure of Accounting Treatment:

In the preparation of the financial statements, the Company has followed the applicable Indian Accounting Standards (Ind AS) issued by the Institute of Chartered Accountants of India. The significant accounting policies, which are constantly applied, are set out in the Annexure to Notes on Accounts.

(iv) Shareholder Rights:

Since the financial results are published in the newspapers and also posted on the Company's website, those are not being sent to the shareholders.

(v) Risk Management:

Business risk evaluation and management is an ongoing process within the Company. During the year under review, a detailed exercise of Risk Assessment and Management was carried out covering the entire gamut of business operations and the Board was informed of the same.

K. Instances of not accepting any recommendation of the Committee by the Board:

There was no such instance where Board had not accepted any recommendation of any committee of the Board, whether mandatorily required or not, in the relevant financial year.

• L. Details of Loans and advances in the nature of loans to firms/companies in which directors are interested by name and amount:

The Company had granted loan of Rs. Three Crores to its Associate Company Eurotex Industries & Exports Limited. As on 31[st] March 2025 the Loan amount outstanding was Rs. 36555452/- including the Interest Rs. 6555452/-. Further, the said loan has been repaid in full in the month of July 2025 and the interest amount of Rs. 3324384/- is outstanding as on 13[th] August 2025 i.e. the date of this report.

M. The Company is not required to formulate Dividend Distribution Policy as per Reg. 43A of the Listing Regulations.

N. MEANS OF COMMUNICATION

The Company generally publishes quarterly, half yearly, nine months and Annual Standalone and Consolidated Financial Results in one English daily newspaper and one daily newspaper of regional language namely “The Financial express”, in accordance with the requirements of the Regulation 47 of the Listing Regulations.

All periodical compliance like Announcements, Financial Results, Shareholding Pattern, Corporate Governance Report, Book Closure Dates, etc. are electronically filed with BSE Limited through BSE.LISTING CENTRE. All material information about the Company including financial results is promptly uploaded on website of the Company www.pbmpolytex.com also as may be required from time to time.

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O. GENERAL SHAREHOLDER INFORMATION:

1. 106[th] Annual General Meeting will be held at 11:00 A. M. on 26[th] September, 2025 , through Video Conference.

2. Financial Year from 01.04.2024 to 31.03.2025.

3. Date of Book Closure : From 20.09.2025 to 26.09.2025 (both days inclusive)

4. Listing of Shares:

The Company’s shares are listed on the following Stock Exchange. The Company confirms that the annual listing fees to BSE Limited for the financial year 2024-25 has been paid.

**Name of Stock Exchange **	Scrip Code	ISIN No.
BSE Limited Floor 25, P. J. Towers, Dalal Street, Mumbai – 400001	514087	INE501F01018

5. Stock Market Data for FY 2024-25 (BSE) :

Month	Month’s Highest Price(Rs.)	Month’s Lowest Price (Rs.)
April 2024	97.55	78.36
May2024	99.80	79.60
June 2024	90.42	78.40
July2024	114.80	83.25
August 2024	117.95	95.60
September 2024	100.99	88.07
October 2024	97.89	79.68
November 2024	93.95	78.05
December 2024	104.00	83.20
January2025	95.45	82.50
February2025	91.95	63.25
March 2025	79.50	58.00

6. Performance in comparison to broad-based indices such as BSE Sensex, CRISIL Index etc.

Particulars	31.03.2025(Rs.)	31.03.2024(Rs.)	Change (%)
Shareprice of PBM	62.49	77.35	-19.21
BSE Sensex	77414.92	73651.35	+5.11

7. Commodity price risk or foreign exchange risk and hedging activities

During the financial year, the Company actively monitored and managed its foreign exchange exposure, implementing hedging strategies for export transactions as deemed appropriate. The management continues to closely observe fluctuations in yarn prices, which remain inherently volatile, and takes necessary measures to mitigate associated risks.

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The Company does not have any material exposure to other commodities and, therefore, has not undertaken any specific hedging activities in this regard. Consequently, there are no disclosures required under the SEBI circular dated November 15, 2018

8. Demat Suspense account/ Unclaimed Suspense Account

No unclaimed share certificates are with the Company.

9. Registrars & Share Transfer Agent:

(Share Transmission, Duplicate issue, Consolidation, Name Deletion etc., Demat, communications regarding Share Certificates, Dividends and Change of address):-

Mr. Alpesh Gandhi

M/s MUFG Intime India Pvt. Ltd., (Unit:- PBM Polytex Limited)

“Geetakunj” 1, Bhakti Nagar Society, Behind ABS Tower, Old Padra Road, Vadodara – 390 015; Tel Nos. 0265-3566768; Fax No. 0265-2356791;

E-mail: alpesh.gandhi@in.mpms.mufg.com/ vadodara@in.mpms.mufg.com

10. Share Transfer System:

Share transfers are processed and Share Certificates are duly endorsed, and are delivered within a period of 15 days from the date of receipt, subject to documents being valid and complete in all respect. All requests for dematerialization of shares are processed and the confirmation is given to the Depositories concerned within 15 days from the date of receipt, subject to documents being valid and complete in all respects.

Effective from April 1, 2019, as per SEBI notification no. SEBI/LAD-NRO/GN/2018/24 dated June 8, 2018 as amended from time to time, no shares can now be transferred in physical form except transmission of shares to the legal successors.

11.Distribution of shareholding as at 31.03.2025:

No. of Equity Shares held	No. of Shareholders	No. of Shares Held	% of Issued Capital
1 – 500	4195	502508	7.30
501 – 1000	284	219864	3.20
1001 – 2000	131	190026	2.76
2001 – 3000	41	103975	1.51
3001 – 4000	17	60053	0.87
4001 – 5000	11	52622	0.76
5001 – 10000	20	143170	2.08
More than 10000	48	5606802	81.51
TOTAL	4747	6879020	100.00

12. Dematerialization of shares:

About 97.36% of Company’s paid up equity share capital has been dematerialized up to 31[st] March, 2025. The shareholders wishing to demat the shares may approach Depository Participant(s).

13. Outstanding GDRs/ADRs/Warrants or any Convertible Instruments, conversion date and likely impact

on equity: Not Applicable.

14. Plant Location:

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(A) Yarn Manufacturing Plants of the Company are situated at -

(i) Opp. Railway Station, Petlad – 388450, Dist. Anand, Gujarat

(ii) Plot No.16 to 19, Sector B, AKVN Industrial Area, Borgaon, Kheritaigaon, Dist. Chhindwara (M. P.)

(B) Four Windmills are located in Gujarat at -

(i) Vill: Suthari, Revenue Survey No. 870/P, Taluka Abdasa, Dist. Kutch (Guj.)

(ii) Vill: Okha Madhi, Survey No. 24 Part, Taluka Dwarka, District Jamnagar (Guj.)

(iii) Vill: Methan, Survey No. 284, Taluka Jamjodhpur, Dist. Jamnagar (Guj.)

(iv) Vill: Methan, Survey No. 284/3/Paiki, Taluka Jamjodhpur, Dist. Jamnagar (Guj.)

15. Address for correspondence

Attn: Company Secretary PBM Polytex Limited, Corporate Office: 8[th] Floor, Ramakrishna Chambers, Productivity Road, Alkapuri, Baroda – 390007, Gujarat E-Mail pbmcs@patodiagroup.com

16. Details of Credit Ratings assigned

Your Company has been assigned the following ratings by CARE Ratings Limited:

Name of Credit Rating Agency	Facilities	Existing Ratings	Revised Ratings
CARE Ratings Limited	Long-term Bank Facilities	Care BBB+; Outlook : Negative	Care BBB; Outlook : Stable
	Short-term Bank Facilities	CARE A2; (A Two)	CARE A3+ (A Threeplus)

Members are requested to quote their Folio No. / DP ID-Client ID, Email ID, Telephone Number and full address while having any communication with the Company / Registrars & Share Transfer Agent.

Members are also requested to register their email ID with the Registrar & Share Transfer Agent and also to give their bank account particulars for direct remittance of dividend to their account, if declared (i.e. Name of Bank, account No. with the Bank, Bank IFC Code No., a cancelled cheque leaf).

For PBM POLYTEX LIMITED For PBM POLYTEX LIMITED

		GOPAL PATODIA	ASHOK PANDIT
Place:	Vadodara	Managing Director	Independent Director
Date:	13.08.2025	(DIN: 00014247)	(DIN: 08132980)

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MANAGEMENT DISCUSSION AND ANALYSIS REPORT

(ANNEXURE TO DIRECTORS’ REPORT)

 Industrial Structure and Developments

PBM Polytex Limited, established in 1919, began manufacturing operations in 1922 at Petlad, Gujarat. After facing near-terminal financial distress, the Company was revived by the current management in 1978 through phased modernization. Between 1980 and 1998, capital was raised through internal accruals, public and rights issues, and private placement of debentures, transforming PBM into a consistent dividend-paying entity. Its shares were listed on the Bombay Stock Exchange in 1986, and bonus shares were issued twice.

A second spinning unit was established in 1990 at Borgaon, District Chhindwara (MP). The Company also invested in renewable energy by installing four windmills (aggregate capacity: 1600 KWA) in Jamnagar and Kutch, Gujarat, during 2006–07. In FY 2024–25, PBM Polytex expanded its sustainability initiatives:

Phase I Solar Plant : Commissioned at a cost of ₹1.82 Crore, generating 9.19 lakh units annually, resulting in savings of ₹66 lakh per year. The project was fully funded without borrowings.

Phase II Solar Plant : Commissioned in May 2025 at a cost of ₹54 lakh, expected to generate 9.95 lakh units annually, with projected savings of ₹10 lakh per year.

These investments reflect the Company’s commitment to reducing energy costs and enhancing operational resilience.

 Market Analysis

The Indian textile industry remains one of the largest employment generators globally. However, cotton yarn spinning units face mounting challenges:

-Cotton Price Disparity : As of August 2025, Indian cotton prices remain elevated—₹71.21/quintal for medium staple and ₹75.21 for long staple—following a 7.6% MSP hike. This has pushed ready cotton prices up by ₹2,500 per candy.

-Global Benchmark : International cotton prices hover around 64.5 cents/lb, creating a significant cost gap.

• Import Duty Impact: The 11% import duty on cotton continues to distort competitiveness, although a temporary waiver (Aug–Sep 2025) offers short-term relief.

-Export Headwinds : A 25–50% tariff imposed by the United States has sharply reduced export viability, particularly for cotton yarn.

The Company reported a Profit after Tax (PAT) of ₹–1.47 Crore for QE June 2025, marking a 32.4% decline from the prior four-quarter average.

 Opportunities, Threats, Risks & Concerns Opportunities:

-Solar energy investments to reduce power costs

- Policy advocacy for permanent removal of cotton import duties

-Export diversification to mitigate tariff risks

Threats & Risks:

-Cotton remains a rain-dependent crop, vulnerable to climatic and policy shifts

-Rising MSP and import duties inflate input costs

-Competition from newer, tech-enabled units with lower production costs

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• Segment-Wise Performance

• Cotton Yarn: The Company’s core product continues to face margin pressure due to poor price realization and weak export demand.

Wind Energy : The four windmills are operating at average efficiency due to aging infrastructure. Solar Power: The newly commissioned solar plants are expected to significantly reduce energy costs and improve sustainability metrics.

 Internal Control Systems and adequecy

• The Company maintains robust internal controls commensurate with its scale and complexity. To enhance compliance and transparency two independent Chartered Accountant firms conduct internal audits at Petlad and Borgaon units. Internal Control Department regularly monitors asset protection, transaction accuracy, and legal compliance.

• Outlook

The near-term outlook for cotton yarn remains subdued due to elevated domestic cotton prices and global trade barriers. However, the upcoming cotton season (October onwards) may offer relief. The solar power investment is expected to improve cost efficiency and support long-term profitability.

• Financial & Operational Performance

• FY 2024–25 witnessed high volatility in cotton and yarn markets. Domestic demand remained tepid, compressing margins. Operational cost pressures persisted due to high input prices and limited pricing power.

• Human Resources & Industrial Relations

• Industrial relations remained stable across both units. Both units continues to face a shortage of skilled workers and high absenteeism, resulting in production losses. Industry-wide, absenteeism in spinning mills ranges from 11–20% daily, driven by strenuous working conditions and low job satisfaction. The HR department is actively recruiting and training apprentices to stabilize manpower and restore production efficiency.

DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS ALONGWITH DETAILED EXPLANATIONS THEREOF:

The following key financial ratios in FY 2024-25 has witnessed a significant change i.e. a change of 25% or more as compared to the FY 2023-24 :-

Sr. No.	Key Financial Ratios	FY 2024-25	FY 2023-24	Change in % as compared to previous year	Reason
1.	Current Ratio	5.87 times	3.95 times	48.66%	Due to decrease in current liability as compared topreviousyear
2.	Net Profit Margin (%)	-2.69%	-3.33%	19.35%	No major Variation
3.	Return on Net Worth (%)	-4.89%	-6.26%	21.91%	No major Variation
4.	Debtors Turnover Ratio	14.58 times	13.77 times	5.87%	No major variation
5.	Inventory Turnover Ratio	3.34 times	4.07 times	-17.79%	No major variation
6.	Interest Coverage	-11.29 times	-17.73 times	36.32%	Due to decrease in losses as compared to previous year
7.	Operating Profit Margin	-1.39%	-2.37%	41.35%	Due to decrease in losses as compared to previous year
8.	Debt Equity Ratio	0.003%	0.011%	-72.73%	Due to decrease in working capital facilities.

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FINANCIAL PERFORMANCE OF CURRENT AND PREVIOUS TWO YEARS BASED ON DIFFERENT INDICATORS

			(Rs. In Lakhs)
Year	2022-23	2023-24	2024-25
Capital	688	688	688
Free Reserves	10443	10443	10443
Effective Capital	12640	12046	11660
Exports	5332	4656	4191
Total Sales & other Income	20529	19600	17820
Profit Before Depreciation & Tax	403	-473	-262
Dividend Per Share(Rs.)	NIL	NIL	NIL

CAUTIONARY STATEMENT

Any changes in applicable laws, regulations and Government policies and the present epidemic leading to reduction / stoppage of production are beyond the control and anticipations of the management and may adversely affect the profitability of the Company.

Place: Vadodara Date: 13.08.2025

For PBM POLYTEX LIMITED For PBM POLYTEX LIMITED GOPAL PATODIA ASHOK PANDIT Managing Director Independent Director (DIN: 00014247) (DIN: 08132980)

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Compliance with Code of Business Conduct and Ethics

Pursuant to Part D of Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, I, hereby, confirm that the Company has received affirmations on compliance with the Company’s Code of Business Conduct and Ethics for the financial year ended 31[st] March, 2025 from all the Board members and Senior Management Personnel.

For PBM Polytex Limited Place : Vadodara (Amit Patodia) Date : 28.05.2025 Chief Executive Officer

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CEO / CFO CERTIFICATION

We, the undersigned, in our respective capacities as Sr. President cum Chief Executive Officer and as Managing Director cum Chief Financial Officer of PBM Polytex Limited (“the Company”), to the best of our knowledge and belief, certify that:

• a. We have reviewed the Financial Statements and Cash Flow Statement for the financial year ended 31[st] March, 2025 and that to the best of our knowledge and belief, we state that:

• i. these statements do not contain any materially untrue statement or omit any material fact or contain statements that might be misleading;

• ii. these statements together present a true and fair view of the Company’s affairs and are in compliance with the existing accounting standards, applicable laws and regulations;

• b. We further state that to the best of our knowledge and belief, no transactions which are entered into by the Company during the year, are fraudulent, illegal or violative of the Company’s Code of Business Conduct and Ethics;

• c. We are responsible for establishing and maintaining internal controls for financial reporting and that we have evaluated the effectiveness of the internal control systems of the Company and have disclosed to the Auditors and the Audit Committee, deficiencies in the design or operation of the internal control, if any, of which we are aware and the steps we have taken or proposed to take to rectify these deficiencies.

• d. We have indicated to the Auditors and the Audit Committee that there are :

• i. no significant changes in internal controls over financial reporting during the year;

• ii. no significant changes in accounting policies during the year and that the same have been disclosed in the notes to the financial statements; and

• iii. no instances of significant fraud of which we have become aware and the involvement therein of the management or an employee having a significant role in the Company’s internal control system over the financial reporting.

Place : Vadodara (Amit Patodia) (Mohan Kumar Patodia) Date : 28.05.2025 Sr. President cum Chief Executive Managing Director cum Chief Financial Officer Officer

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Corporate Governance Compliance Certificate

[For the Financial Year ended March 31, 2025 pursuant to Schedule V – Part E of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015]

The Members,

PBM Polytex Limited

We have examined the compliance of the conditions of Corporate Governance by PBM Polytex Limited (“Company”) for the Financial Year ended March 31, 2025(“review period”), as per the relevant provisions of Securities and Exchange Board of India (“SEBI”) (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations”).

The Compliance of conditions of Corporate Governance is the responsibility of the Company’s Management. Our examination was limited to the procedures and implementation thereof, adopted by the Company for ensuring the compliance of the conditions of Corporate Governance. It is neither an audit nor an expression of an opinion on the Financial Statements of the Company.

In our opinion and to the best of our information and according to the explanations given to us, we certify that the Company has complied with the conditions of Corporate Governance as stipulated in the above mentioned Listing Regulations.

We further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness with which the Management has conducted the affairs of the Company.

S. Samdani

Partner

Samdani Shah & Kabra

Company Secretaries FCS No. 3677 | CP No. 2863

ICSI Peer Review # 1079/2021 ICSI UDIN: F003677F000478107 Place: Vadodara | Date: May 28 2025

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Certificate of Non-Disqualification of Directors

[ Pursuant to Regulation 34(3) read with Schedule V Para C Clause 10 (i)

of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015]

The Members,

PBM Polytex Limited

We have examined the Registers, Papers, Books, Records, Forms, Returns, Declarations, Disclosures and other related documents of PBM Polytex Limited (“Company”), having CIN: L17110GJ1919PLC000495, situated at Opposite Railway Station, Petlad – 388 450, Gujarat, India, as produced before us by the Company for the purpose of issuing this Certificate, in accordance with Regulation 34(3) read with Schedule V Para C Clause 10(i) of Securities and Exchange Board of India (“SEBI”) (Listing Obligations and Disclosure Requirements) Regulations, 2015.

In our opinion and to the best of our information and according to the verifications (including Director Identification Number (DIN) status at the portal www.mca.gov.in) as considered necessary and explanations furnished to us by the Company, its officers and representatives, we hereby certify that none of the Directors on the Board of the Company, as stated below for the Financial Year ended on March 31, 2025, have been debarred or disqualified from being appointed or continuing as Director of the Company by the SEBI, Ministry of Corporate Affairs, or any such other Statutory Authority.

Sr. No.	Name of the Director	DIN	Original Date of Appointment
1.	Ms. Amishal Surendrakumar Modi	09661312	12-08-2022
2.	Mr. Ashok Anandpriya Pandit	08132980	19-05-2018
3.	Mr. Chirayush Indrajitbhai Patel	08690998	14-02-2020
4.	Mr. Gopal Patodia	00014247	01-10-2010
5.	Mr. Hari Prasad Siotia	00015103	09-08-1980
6.	Mr. Krishan Kumar Patodia	00027335	12-06-1979
7.	Mr. Mohan Kumar Patodia	00035381	01-04-2012
8.	Mr. Rakesh Laxmanprasad Todi	08476512	13-08-2019

Ensuring the eligibility for the appointment / continuity of every Director on the Board is the responsibility of the Management of the Company. Our responsibility is to express an opinion on these, based on our verification. This certificate is neither an assurance as to the future viability of the Company nor of the efficiency or effectiveness with which the management has conducted the affairs of the Company.

S. Samdani

Partner

Samdani Shah & Kabra

Company Secretaries FCS No. 3677 | CP No. 2863

ICSI Peer Review #: 1079/2021 | ICSI UDIN: F003677F000478173 Place: Vadodara | Date: May 28, 2025

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Standalone Financial Statements

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INDEPENDENT AUDITOR’S REPORT

To the Members of

PBM Polytex Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements of PBM Polytex Limited (the ‘Company’) which comprise the Balance Sheet as at March 31, 2025, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Cash Flows and the Statement of Changes in Equity for the year then ended, and notes to the standalone financial statements, including a summary of material accounting policies and other explanatory information (herein after referred as “the Standalone Financial Statements”).

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 (the “Act”) in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended (“Ind AS”) and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2025, and its loss, total comprehensive loss, its cash flows and the changes in equity for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor’s Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by Institute of Chartered Accountants of India (ICAI) together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI’s Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

We have determined that there is no key audit matter to communicate in our report.

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Information other than Financial Statements & Auditors Report thereon.

The Company’s Board of Directors is responsible for the Other Information. The Other Information comprises the information included in the Board’s Report including Annexures to Board’s Report and Management Discussion & Analysis, but does not include the standalone financial statements and our auditor’s report thereon. The other information is expected to be made available to us after the date of this auditor’s report.

Our opinion on the standalone financial statements does not cover the Other Information and we do not and will not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained during course of audit, or otherwise appears to be materially misstated.

When we read the other information, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance as required under SA 720 ‘The Auditor’s Responsibilities Relating to Other Information”.

Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements

The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards specified under Section 133 of the Act . This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgement and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the standalone financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Company’s Board of Directors are also responsible for overseeing the Company’s financial reporting process.

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Auditor’s Responsibilities for the Audit of the Standalone Financial Statements:-

Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal financial control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls with reference to standalone financial statements in place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting polices used and the reasonableness of accounting estimates and related disclosures made by the management.

• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the standalone financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the standalone financial statements.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and

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other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by Section 143(3) of the Act, we report that:

2. (a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief are necessary for the purpose of our audit.

3. (b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.

4. (c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, the Statement of Cash Flow and the Statement of Changes in Equity dealt with by this report are in agreement with the books of account.

5. (d) In our opinion, the aforesaid standalone financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act.

6. (e) On the basis of the written representations received from the directors as on March 31, 2025 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2025 from being appointed as a director in terms of Section 164(2) of the Act.

7. (f) With respect to the adequacy of internal financial controls with reference to standalone financial statements of the Company and the operating effectiveness of such controls, refer to our separate report in “Annexure A” .

8. (g) With respect to the other matters to be included in the Auditor’s Report in accordance with the requirements of Section 197(16) of the Act, as amended:

   • In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid/provided by the Company to its directors during the year is in accordance with the provisions of Section 197 read with Schedule V to the Companies Act, 2013.

9. (h) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations given to us :

   • i. The Company has disclosed the impact of pending litigations on its financial position of its standalone financial statements – Refer Note No. 37 to the standalone financial statements.

   • ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.

   • iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.

   • iv. (a) The management has represented that, to the best of its knowledge and belief, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other

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person(s) or entity(ies), including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(b) The management has represented, that, to the best of its knowledge and belief, no funds have been received by the Company from any person(s) or entity(ies), including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

  - (c) Based on the audit procedures that has been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under (a) & (b) above contain any material misstatement.

• v. The Company has not declared or paid any dividend during the year and has not proposed final dividend for the year.

• vi. Based on our examination which included test checks, the Company has used accounting software for maintaining its books of account for the financial year ended March 31, 2025 which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software (refer Note No. 53 to the standalone financial statements). Further, during the course of our audit we did not come across any instance of audit trail feature being tampered with. Additionally, the audit trail has been preserved by the Company as per statutory requirements for record retention.

• As required by the Companies (Auditor’s Report) Order, 2020 (the “Order”) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Companies Act, 2013, we give in the “Annexure B” a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

For, Mahendra N. Shah & Co. Chartered Accountants FRN 105775W

Place: Ahmedabad Date: May 28, 2025 UDIN: 25045706BMJAIZ6859

Chirag M. Shah Partner Membership No. 045706

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“Annexure A” to the Independent Auditors’ Report

(Referred to in paragraph 1(f) under “Report on Other Legal and Regulatory Requirements” section of our report to the members of PBM Polytex Limited of even date)

Report on the Internal Financial Controls with reference to standalone financial statements under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”)

We have audited the internal financial controls with reference to standalone financial statements of PBM Polytex Limited (“the Company”) as of March 31, 2025 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.

Management’s Responsibility for Internal Financial Controls

The Company’s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial controls over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.

Auditor’s Responsibility

Our responsibility is to express an opinion on the Company’s internal financial controls with reference to standalone financial statements based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the “Guidance Note”) and the Standards on Auditing as specified under section 143(10) of the Act, to the extent applicable to an audit of internal financial controls, both applicable to an audit of internal financial controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls with reference to standalone financial statements was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls with reference to standalone financial statements and their operating effectiveness. Our audit of internal financial controls with reference to standalone financial statements included obtaining an understanding of internal financial controls with reference to standalone financial statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor’s Judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company’s internal financial controls with reference to standalone financial statements.

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Meaning of Internal Financial Controls with Reference to Standalone Financial Statements

A company’s internal financial control with reference to standalone financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purpose in accordance with generally accepted accounting principles. A company’s internal financial control with reference to standalone financial statements includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company. (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company, and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the standalone financial statements.

Inherent Limitations of Internal Financial Controls with Reference to Standalone Financial Statements

Because of the inherent limitations of internal financial controls with reference to standalone financial statement, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls with reference to standalone financial statements to future periods are subject to the risk that the internal financial control with reference to standalone financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies of procedures may deteriorate.

Opinion

In our opinion, the Company has, in all material respects, an adequate internal financial controls with reference to standalone financial statements and such internal financial controls with reference to standalone financial statements were operating effectively as on March 31, 2025, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal controls stated in the Guidance Note issued by the Institute of Chartered Accountants of India.

For, Mahendra N. Shah & Co. Chartered Accountants FRN 105775W

Place: Ahmedabad Date: May 28, 2025 UDIN: 25045706BMJAIZ6859

Chirag M. Shah Partner Membership No. 045706

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62

PBM Polytex Limited

“Annexure B” to the Independent Auditors’ Report

(Referred to in paragraph 2 under “Report on Other Legal & Regulatory Requirements” section of our report of even date to the financial statements of the Company for the year ended March 31, 2025)

To the best of our information and according to the explanations provided to us by the Company and the books of account and records examined by us in the normal course of audit, we state that :-

• i. (a) (A) The Company is maintaining proper records showing full particulars, including quantitative details and situation of Property Plant & Equipment and relevant details of right-ofuse assets.

  • (B) The Company has maintained proper records showing full particulars of intangible assets.

• (b) The Property, Plant & Equipment have been physically verified by the management in a phased manner, designed to cover all the items over a period of three years, which in our opinion, is reasonable having regard to the size of the Company and nature of its business. According to information and explanation given to us, no material discrepancies were noticed on such verification.

• (c) The title deeds of immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) as disclosed in Note No. 2 on “Property, Plant and Equipment” to the financial statements are in the name of the company.

• (d) The Company has not revalued any of its property, plant and equipment (including Right of Use assets) and intangible assets during the year.

• (e) No proceedings have been initiated during the year or are pending against the Company as at March 31, 2025 for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (as amended in 2016) and rules made thereunder.

• ii. (a) The inventories were physically verified during the year by the Management at reasonable intervals. In our opinion and according to the information and explanations given to us, the coverage and procedure of such verification by the Management is appropriate having regard to the size of the Company and the nature of its operations. No discrepancies of 10% or more in the aggregate for each class of inventories were noticed on such physical verification of inventories when compared with books of account.

• (b) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has been sanctioned working capital limits in excess of Rs. 5 crores, in aggregate, from banks on the basis of security of current assets. In our opinion, the quarterly returns/ statements filed by the Company are not in agreement with the books of accounts. Refer Note No. 51 of the financial statements for the same.

• iii. The Company has not made investments in, provided any guarantee or security to companies, firms, Limited Liability Partnerships and other parties during the year. The Company has granted loans or advances in the nature of loans, secured or unsecured, to companies and any other parties during the year, in respect of which:

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• (a) Company has granted loans or advances in the nature of loans during the year and details of which are given below:

(Rs. In Lakhs)

The Particulars	Aggregate Amount during the year (Rs. In Lakhs)	Balance outstanding at the balance sheet date (Rs. In Lakhs)
- Subsidiaries	Nil	Nil
- Joint Ventures	Nil	Nil
- Associates	Nil	365.55*
- Others	20.97	28.55

• including interest accrued amounting to Rs. 65.55 Lakhs

The Company has not given guarantee or provided security to any other entity during the year.

• (b) The grant of all the above-mentioned loans and advances in the nature of loans and guarantees provided, during the year are, in our opinion, prima facie, not prejudicial to the Company’s interest.

• (c) In respect of interest-free loans or advances in the nature of loans provided by the Company to its employees, the schedule of repayment of principal has been stipulated and the repayments of principal amounts are regular as per stipulation in such cases except for the following:

(Rs. In Lakhs)

Name of the employee	Nature	Amount	Due Date	Extent of Delay
Vinod Kumar Sharma	Staff Loan	0.04	Apr-24	12 Months
DEV RAJ SAINI	Staff Loan	0.94	Jan-25	3 Months
PRADEEP KADU	Staff Loan	0.05	Dec-24	4 Months
PRITI NIMSARKAR	Staff Loan	0.24	Oct-24	6 Months
SANJAY PRASAD	Staff Loan	0.03	Aug-24	8 Months
SHANKAR NIMBALKAR	Staff Loan	0.03	Apr-24	12 Months
Shri Paresh A. Patel	Staff Loan	0.17	Aug-24	8 Months

In respect of loan to associate company, schedule of repayment of principal amount has not been stipulated and is repayable on demand. However, a term for payment of interest has been stipulated and the same is not paid on due date:-

(Rs. In Lakhs)

Name of the Company	Nature	Financial Year	Amount	Due Date	Extent of Delay
Eurotex Industries and Exports Limited	Interest on Inter- corporate Loan	2021-22	8.85	March-22	36 Months
		2022-23	18.90	March-23	24 Months
		2023-24	18.90	March-24	12 Months
		2024-25	18.90	March-25	1 day

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• (d) In respect of following loans granted and advances in the nature of loans provided by the Company, which have been overdue for more than 90 days at the balance sheet date, as explained to us, the management has taken reasonable steps for recovery:

• (Rs. In Lakhs)

Nos. of cases	Principal amount overdue	Interest overdue	Total overdue
6	1.50	46.65	48.15

• (e) No loan or advance in the nature of loan granted by the Company which has fallen due during the year, has been renewed or extended or fresh loans granted to settle the overdues of existing loans given to the same parties.

• (f) The Company has granted loans which are repayable on demand or without specifying any terms or period of repayment details of which are given below:

			(Rs. In Lakhs)
Particulars	All Parties- Including Related Party (Rs. In Lakhs)*	Promoters (Rs. In Lakhs)*	Related Parties (Rs. In Lakhs)*
Aggregate amount of loans or advances in the nature of loans which are repayable on demand or without specifying any terms or period of repayment	300.00	Nil	300.00

  - including opening balance as on 1/4/2024

• iv. In our opinion and according to the information and explanations given to us, the company has complied with provisions of Section 185 and 186 of the Act in respect of investments made and loans granted, to the extent applicable to the Company. The company has not given guarantee or provided security as provided in section 185 and 186 of the Act.

• v. The Company has not accepted any deposit or amounts which are deemed to be deposits. Hence, reporting under clause 3(v) of the Order is not applicable.

• vi. The Central Government has prescribed maintenance of Cost Records under section 148(1) of the Companies Act, 2013 in respect of manufacturing activities of the company. We have broadly reviewed the accounts and the records of the company in this connection and are of opinion, that prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the same.

• vii. According to information and explanations given to us in respect of statutory dues and on the basis of our examination of the books of account, and records,

• (a) The Company has been generally regular in depositing undisputed statutory dues including Goods and Services Tax, Provident Fund, Employees State Insurance, Income-Tax, Sales Tax, Service Tax, Duty of Customs, Duty of Excise, Value Added Tax, Cess and any other statutory dues with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of the above were in arrears as at March 31, 2025 for a period of more than six months from the date on when they become payable.

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65

(b) According to the information and explanations given to us, there are no statutory dues referred to in sub-clause (a) above which have not been deposited with the appropriate authorities as on March 31, 2025 on account of any dispute.

• viii. There were no transactions relating to previously unrecorded income that were surrendered or disclosed as income in the tax assessments under the Income Tax Act, 1961 (43 of 1961) during the year.

• ix. (a) In our opinion, the Company has not defaulted in the repayment of loans or other borrowings or in the payment of interest thereon to any lender during the year.

(b) The company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

(c) The Company has not taken any term loan during the year and there are no unutilized term loans at the beginning of the year and hence, reporting under clause 3(ix)(c) of the Order is not applicable.

(d) On an overall examination of the financial statements of the Company, funds raised on short-term basis have, prima facie, not been used during the year for long-term purposes by the Company.

(e) On an overall examination of the financial statements of the Company, the Company has not taken any funds from any entity or person on account of or to meet the obligations of its subsidiary, associate or joint venture.

(f) The Company has not raised loans during the year on the pledge of securities held in its subsidiary, associate or joint venture.

• x. (a) According to the information and explanations given by the management, The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments) during the year and hence reporting under clause 3(x)(a) of the Order is not applicable.

(b) During the year the Company has not made any preferential allotment or private placement of shares or convertible debentures (fully or partly or optionally) and hence reporting under clause 3(x)(b) of the Order is not applicable to the Company.

• xi. (a) To the best of our knowledge, no fraud by the Company and no material fraud on the Company has been noticed or reported during the year.

(b) To the best of our knowledge, no report under sub-section (12) of section 143 of the Act has been filed in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central Government, during the year and upto the date of this report.

(c) As represented to us by the Management, there were no whistle blower complaints received by the Company during the year and upto the date of this report.

• xii. The Company is not a Nidhi Company and hence reporting under clause (xii) of the Order is not applicable.

• xiii. In our opinion, the Company is in compliance with Section 177 and 188 of the Companies Act, where applicable, for all transactions with the related parties and the details of related party transactions

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66

have been disclosed in the financial statements etc. as required by the applicable accounting standards.

• xiv. (a) In our opinion the Company has an adequate internal audit system commensurate with the size and the nature of its business.

(b) We have considered, the internal audit reports issued to the Company during the year and till the date of the audit report covering the period up to March 31, 2025.

xv. In our opinion during the year the Company has not entered into any non-cash transactions with any of its directors or persons connected with such directors and hence provisions of section 192 of the Companies Act, 2013 are not applicable to the Company.

xvi. (a) In our opinion and according to information and explanations given to us, the Company is not required to be registered under section 45IA of the Reserve Bank of India Act, 1934.

(b) In our opinion, the Company has not conducted any Non-Banking Financial or Housing Finance activities without any valid Certificate of Registration from Reserve Bank of India. Hence, the reporting under paragraph clause 3(xvi)(b) of the Order are not applicable to the Company.

(c) The Company is not a Core investment Company (CIC) as defined in the regulations made by Reserve Bank of India. Hence, the reporting under paragraph clause 3 (xvi)(c) of the Order are not applicable to the Company. s

(d) The Company does not have any CIC as part of its group. Hence the provisions stated in paragraph clause 3(xvi)(d) of the order are not applicable to the company.

xvii. The Company has incurred cash losses amounting to Rs. 236.70 Lakhs during the financial year covered by our audit and Rs. 473.06 Lakhs in the immediately preceding financial year.

xviii. There has been no resignation of the statutory auditors of the Company during the year. Accordingly, clause 3(xviii) of the Order is not applicable.

xix. On the basis of the financial ratios, ageing and expected dates of realization of financial assets and payment of financial liabilities, other information accompanying the financial statements and our knowledge of the Board of Directors and Management plans and based on our examination of the evidence supporting the assumptions, nothing has come to our attention, which causes us to believe that any material uncertainty exists as on the date of the audit report indicating that Company is not capable of meeting its liabilities existing at the date of balance sheet as and when they fall due within a period of one year from the balance sheet date. We, however, state that this is not an assurance as to the future viability of the Company. We further state that our reporting is based on the facts up to the date of the audit report and we neither give any guarantee nor any assurance that all liabilities falling due within a period of one year from the balance sheet date, will get discharged by the Company as and when they fall due.

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67

• xx. The Company has not having net worth of rupees five hundred crore or more, or turnover of rupees one thousand crore or more or a net profit of rupees five crore or more during the immediately preceding financial year and hence, provisions of Section 135 of the Act are not applicable to the Company during the year. Accordingly, reporting under clause 3(xx) of the Order is not applicable to the Company for the year.

For, Mahendra N. Shah & Co. Chartered Accountants FRN 105775W

Place: Ahmedabad Chirag M. Shah Date: May 28, 2025 Partner UDIN: 25045706BMJAIZ6859 Membership No. 045706

==> picture [293 x 293] intentionally omitted <==

ANNUAL REPORT 2024-25

68

PBM POLYTEX LIMITED

STANDALONE BALANCE SHEET AS AT 31ST MARCH, 2025

				(Rs. In Lakhs)	(Rs. In Lakhs)
Particulars			Notes No.	As at 31st March, 2025	As at 31st March, 2024
I	ASSETS
1)	Non-current Assets
	(a)	Property,Plant and Equipment(includingROU Assets)	2	5,202.51	5,417.90
	(b)	Capital work-in-progress	3	69.02	69.14
	(c)	Intangible assets	4	3.67	5.80
	(d)	Financial Assets
		(i)Investments	5	466.51	484.86
		(ii)Other Financial Assets	6	86.32	83.11
	(e)	Other non-current assets	7	71.11	26.77
		Total Non-current Assets		5,899.14	6,087.58
2)	Current Assets
	(a)	Inventories	8	4,707.36	5,620.67
	(b)	Financial Assets
		(i)Current Investments	9	0.00	670.18
		(ii)Trade receivables	10	1,423.60	962.93
		(iii)Cash and cash equivalents	11	277.49	302.38
		(iv)Bank balances other than(iii)above	12	28.12	34.56
		(v)Loans	13	328.55	323.68
		(vi)Other Financial Assets	14	65.89	46.98
	(c)	Current tax assets(Net)	15	15.92	16.87
	(d)	Other current assets	16	492.93	628.32
		Total Current Assets		7,339.86	8,606.57
		TOTAL ASSETS		13,239.00	14,694.15
II	EQUITY AND LIABILITIES
1)	Equity
	(a)	EquityShare Capital	17	687.90	687.90
	(b)	Other Equity	18	10,973.01	11,358.27
		Total Equity		11,660.91	12,046.17
2)	Liabilities
	Non-current Liabilities
	(a)	Financial Liabilities
		(i)Lease Liabilities	36.1	11.67	17.62
		(ii)Other financial liabilities	19	1.00	1.20
	(b)	Provisions	20	73.47	74.08
	(c)	Deferred tax liabilities(Net)	21	241.78	375.87
		Total Non-current Liabilities		327.92	468.77
	Current Liabilities
	(a)	Financial Liabilities
		(i)Borrowings	22	16.80	107.85
		(ii)Lease Liabilities	36.1	5.95	4.93
		(iii)Tradepayables
		- Total outstanding dues of micro & small enterprises	23	13.92	9.14
		- Total outstanding dues of creditors other than micro enterprises and small enterprises		350.20	213.32
		(iv)Other financial liabilities	24	170.15	213.02
	(b)	Other current liabilities	25	578.62	1,516.06
	(c)	Provisions	26	114.53	114.89
		Total Current Liabilities		1,250.17	2,179.21
		TOTAL EQUITY AND LIABILITIES		13,239.00	14,694.15
		Material Accounting Policies and Notes to the Financial Statements	1 - 55

As per our report of even date attached herewith

For and behalf of the Board of Directors of

PBM Polytex Limited

For Mahendra N. Shah & Co. Chartered Accountants

FRN: 105775W

Shri Gopal Patodia, Managing Director (DIN: 00014247)

Shri Mohan Kumar Patodia, Managing Director cum CFO (DIN: 00035381)

Shri Ashok Pandit, Independent Director (DIN: 08132980)

Chirag M. Shah Partner

M. No.: 045706 Place : Ahmedabad Date: 28th May, 2025

Shri Amit Patodia, CEO

Shri Sunil Somani, Finance Controller

Swati Billore

Company Secreary Place: Vadodara (M. No. F8321) Date: 28th May, 2025

ANNUAL REPORT 2024-25

69

PBM POLYTEX LIMITED

STANDALONE STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31ST MARCH, 2025

PBM POLYTEX LIMITED STANDALONE STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31ST MARCH, 2025	PBM POLYTEX LIMITED STANDALONE STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31ST MARCH, 2025	PBM POLYTEX LIMITED STANDALONE STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31ST MARCH, 2025	PBM POLYTEX LIMITED STANDALONE STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31ST MARCH, 2025	PBM POLYTEX LIMITED STANDALONE STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31ST MARCH, 2025
(Rs. In Lakhs)
Particulars		Notes No.	2024-25	2023-24
I	INCOME
	Revenue from operations	27	17,621.48	19,157.11
	Other income	28	198.25	443.31
	Total Income		17,819.73	19,600.42
**II **	EXPENSES
	Cost of materials consumed	29	12,179.93	13,512.75
	Changes in inventories of finished goods, Stock-in -Trade and work-in-progress	30	(98.86)	391.03
	Employee benefits expense	31	2,263.04	2,222.14
	Finance costs	32	47.46	54.65
	Depreciation and amortization expense	33	367.64	365.86
	Other expenses	34	3,690.55	3,892.90
	Total Expenses		18,449.76	20,439.33
**III **	Profit/(Loss) before exceptional items and tax		(630.03)	(838.91)
**IV **	Exceptional Items		-	-
**V **	Profit/(Loss) before tax		(630.03)	(838.91)
**VI **	Tax Expenses
	Current Tax
	Deferred Tax Provision/ (Reversal)		(161.86)	(196.73)
	Excess Provision of Income Tax of Earlier Years		(0.35)	(12.55)
	Total Tax Expense		(162.21)	(209.28)
**VII **	Profit/(Loss) for theyear		(467.82)	(629.63)
**VIII **	Other Comprehensive Income
	Items that will not be reclassified toprofit or loss
	Remeasurement of defined benefitplans		110.33	47.96
	Income tax relatingto above items		(27.77)	(12.07)
	Total Other comprehensive Income/(Loss) for theyear		82.56	35.89
**IX **	Total Comprehensive Income/(Loss) for theyear		(385.26)	(593.74)
**X **	Earning per Equity Share of face value of Rs. 10 each
	Basic(₹)	35	(6.80)	(9.15)
	Diluted(₹)	35	(6.80)	(9.15)
	Material Accounting Policies and Notes to the Financial Statements	1 - 55

As per our report of even date attached herewith

For and behalf of the Board of Directors of PBM Polytex Limited

For Mahendra N. Shah & Co.

Chartered Accountants FRN: 105775W

Shri Gopal Patodia, Managing Director (DIN: 00014247)

Shri Mohan Kumar Patodia, Managing Director cum CFO (DIN: 00035381)

Shri Ashok Pandit, Independent Director (DIN: 08132980)

Chirag M. Shah Partner M. No.: 045706

Shri Amit Patodia, CEO

Shri Sunil Somani, Finance Controller

Place : Ahmedabad Date: 28th May, 2025

Swati Billore Company Secreary (M. No. F8321)

Place: Vadodara Date: 28th May, 2025

ANNUAL REPORT 2024-25

70

PBM POLYTEX LIMITED

STANDALONE STATEMENT OF CASH FLOW FOR THE YEAR ENDED 31ST MARCH, 2025

PBM POLYTEX LIMITED STANDALONE STATEMENT OF CASH FLOW FOR THE YEAR ENDED 31ST MARCH, 2025	PBM POLYTEX LIMITED STANDALONE STATEMENT OF CASH FLOW FOR THE YEAR ENDED 31ST MARCH, 2025	PBM POLYTEX LIMITED STANDALONE STATEMENT OF CASH FLOW FOR THE YEAR ENDED 31ST MARCH, 2025	PBM POLYTEX LIMITED STANDALONE STATEMENT OF CASH FLOW FOR THE YEAR ENDED 31ST MARCH, 2025
(Rs. In Lakhs)
Particulars		For the Year Ended 31/03/2025	For the Year Ended 31/03/2024
A	CASH FLOW FROM OPERATING ACTIVITIES
	Profit/(Loss) Before Tax	(630.03)	(838.91)
	Adjustments for :
	Depreciation/Amortization	367.64	365.86
	Interest Income	(43.14)	(44.10)
	Interest and Other BorrowingCost	47.46	54.65
	(Profit) /Loss on Sale of Tangible assets	(5.08)	(111.56)
	(Profit) /Loss on Sale of Investment	(145.45)	(132.97)
	Provision for doubtful debt	11.09	0.00
	Excessprovision/sundrybalances written back	(1.62)	(128.45)
	Effect of fair valuation of investments	33.32	(22.16)
	Other Comprehensive Income forgratuity	110.33	47.96
	Operating Profit/(Loss) before Working Capital Changes	(255.48)	(809.68)
	WorkingCapital Changes:
	Changes in Inventories	913.31	(1,961.43)
	Changes in trade and other receivables	(389.27)	801.29
	Changes in trade and otherpayables	(830.84)	819.26
	Net Changes in Working Capital	(306.80)	(340.88)
	Cash Generated from Operations	(562.28)	(1,150.56)
	Direct Taxespaid(Net of Income Tax refund)	1.31	32.91
	Net Cash flow from/(used in) Operating Activities	(560.97)	(1,117.65)
B	CASH FLOW FROM INVESTING ACTIVITIES
	Purchase ofproperty, plant & equipment/intangible assets	(158.99)	(498.81)
	Saleproceeds from disposal ofproperty, plant & equipment	14.56	133.20
	Proceeds from Sale/Redemption of Investment(Net)	814.44	(536.03)
	Movement in Other Bank Balances	6.44	20.15
	Interest Income	10.45	12.26
	Net Cash flow from/(used) in Investing Activities	686.90	(869.23)
C	CASH FLOW FROM FINANCING ACTIVITIES
	Dividend Paid	(7.37)	(8.36)
	Proceeds from/(Repayments)of Short Term Borrowings	(91.05)	71.38
	Interest and Other BorrowingCost Paid	(45.43)	(52.17)
	Payment of Lease Liability	(6.97)	(6.49)
	Net Cash flow from/(used) in Financing Activities	(150.82)	4.36
	Net Increase/(Decrease) in cash & cash equivalents	(24.89)	(1,982.52)
	Cash & Cash equivalent at the beginningof theyear	302.38	2,284.90
	Cash & Cash equivalent at the end of theyear	277.49	302.38
	Cash & Cash Equivalents above comprises of the following
	Balances with banks
	- In current accounts	267.08	285.25
	Cash on hand	10.41	17.13

The accompanying notes are an integral part of these standalone financial statements.

Note :

The cash flow statement has been prepared under the indirect method as set out in Indian Accounting Standards (Ind AS) 7, 'Statement of Cash Flows'.

As per our report of even date attached herewith

For and behalf of the Board of Directors of PBM Polytex Limited

For Mahendra N. Shah & Co.

Chartered Accountants

FRN: 105775W

Shri Gopal Patodia, Managing Director (DIN: 00014247)

Shri Mohan Kumar Patodia, Managing Director cum CFO (DIN: 00035381)

Shri Ashok Pandit, Independent Director (DIN: 08132980)

Chirag M. Shah Partner M. No.: 045706 Place : Ahmedabad Date: 28th May, 2025

Shri Amit Patodia, CEO

Shri Sunil Somani, Finance Controller

Swati Billore

Company Secreary Place: Vadodara (M. No. F8321) Date: 28th May, 2025

ANNUAL REPORT 2024-25

71

PBM POLYTEX LIMITED

STANDALONE STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31ST MARCH, 2025

a. Equity Share capital

a. Equity Share capital
PARTICULARS	(Rs. In Lakhs)
As at 1st April, 2023	687.90
Changes duringtheyear 2023 - 2024	-
As at 31st March, 2024	687.90
Changes duringtheyear 2024 - 2025	-
As at 31st March, 2025	687.90

b. Other Equity

b. Other Equity	(Rs. In Lakhs)
Particulars	Reserves and Surplus				Total
	Share Capital Forfeiture	Capital Redemption Reserve	General Reserve	Retained Earnings
Balance at 1st April, 2023	0.23	125.00	10,442.62	1,384.16	11,952.01
Profit/(Loss)for theyear	-	-	-	(629.63)	(629.63)
Other Comprehensive Income for the year (Including tax thereon)	-	-	-	35.89	35.89
Balance at 31st March, 2024	0.23	125.00	10,442.62	790.42	11,358.27
Balance at 1st April, 2024	0.23	125.00	10,442.62	790.42	11,358.27
Profit/(Loss)for theyear	-	-	-	(467.82)	(467.82)
Other Comprehensive Income for the year (Including tax thereon)	-	-	-	82.56	82.56
Balance at 31st March, 2025	0.23	125.00	10,442.62	405.16	10,973.01

Gain of Rs. 82.56 Lakhs and Rs. 35.89 Lakhs on remeasurement of defined employee benefit plan (net of tax) is recognized as a part of retained earnings for the year ended 31st March, 2025 and 2024 respectively.

As per our report of even date attached herewith

For Mahendra N. Shah & Co. Chartered Accountants FRN: 105775W

For and behalf of the Board of Directors of PBM Polytex Limited

Shri Gopal Patodia, Managing Director (DIN: 00014247)

Shri Mohan Kumar Patodia, Managing Director cum CFO (DIN: 00035381)

Shri Ashok Pandit, Independent Director (DIN: 08132980)

Chirag M. Shah

Partner M. No.: 045706 Place : Ahmedabad Date: 28th May, 2025

Shri Amit Patodia, CEO

Swati Billore Shri Sunil Somani, Finance Controller Company Secreary Place: Vadodara (M. No. F8321) Date: 28th May, 2025

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PBM POLYTEX LIMITED

NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31[ST] MARCH, 2025

1A CORPORATE INFORMATION

PBM Polytex Limited is a public company domiciled in India and is incorporated under the provisions of Companies Act applicable in India. The company is listed on the BSE limited (BSE). The registered office of the Company is located at Opp. Railway Station, Petlad – 388450, District - Anand, Gujarat, India.

The Company is engaged in manufacture and processing of yarn. Its plants are located at Petlad, Gujarat and Boregaon, Madhya Pradesh. The Company has its wide market in local as well foreign market. The Company sells its products through established network.

The standalone financial statements were authorized for issue in accordance with a resolution of the directors on 28[th] May, 2025.

1B MATERIAL ACCOUNTING POLICIES

(1) Basis of Preparation:

Compliance with Ind AS

These standalone financial statements have been prepared in accordance with the Indian Accounting Standards (‘Ind AS’) as notified under the Companies (Indian Accounting Standards) Rules, 2015 read with Section 133 of the Companies Act, 2013 and presentation requirements of Division II of Schedule III to the Companies Act, 2013 (as amended from time to time).

Historical cost convention

The financial statements have been prepared on a historical cost basis, except for the following: 1) certain financial assets and liabilities that are measured at fair value;

2) defined benefit plans - plan assets measured at fair value;

Current and non-current classification

All assets and liabilities have been classified as current or non-current as per the Company’s normal operating cycle (twelve months) and other criteria set out in the Schedule III to the Act.

Functional currency:

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

Rounding of amounts

All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakh as per the requirement of Schedule III, unless otherwise stated.

(2) Key accounting estimates & judgements:

The estimates and judgements used in the preparation of the financial statements are continuously evaluated by the Company and are based on historical experience and various other assumptions and factors (including expectations of future events) that the Company believes to be reasonable under the existing circumstances. Differences between actual results and estimates are recognised in the period in which the results are known/materialised.

The said estimates are based on the facts and events, that existed as at the reporting date, or that occurred after that date but provide additional evidence about conditions existing as at the reporting date.

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PBM POLYTEX LIMITED

NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31[ST] MARCH, 2025

(3) Property, Plant & Equipment:

• Property, plant and equipment are stated at cost, net of recoverable taxes, less depreciation and impairment losses, if any. Such cost includes purchase price, borrowing cost and other cost directly attributable to the acquisition of the items.

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced. All other repairs and maintenance are charged to the Statement of Profit and Loss during the reporting period in which they are incurred.

All expenditure incurred towards property, plant and equipment including expenditure incurred during construction / new projects are accumulated and shown as capital work in progress and not depreciated until such assets are ready for commercial use.

Depreciation methods, estimated useful lives and residual value

Depreciation is provided on a Straight-Line Method over the estimated useful lives of assets as follows: -

Class of Assets	Estimated useful life
Buildings	5-60 years
Plant & Equipment	15-25 years
Electrical Installations	10 years
Furniture & Fixtures	10 years
Office Equipment	3-6 years
Vehicles	8-10years

The useful life as estimated above is aligned to the prescribed useful life specified under Schedule II to the Companies Act, 2013.

The residual values are not more than 5% of the original cost of the asset. The assets residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.

Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in the Statement of Profit and Loss.

Leasehold land is amortized over the period of lease.

(4) Intangible Assets

Computer software is stated at cost, less accumulated amortisation and impairments, if any.

Amortisation method and useful life

The Company amortizes computer software using the straight-line method over the period of 5 years. Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in the Statement of Profit and Loss.

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PBM POLYTEX LIMITED

NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31[ST] MARCH, 2025

(5) Inventories:

Items of inventories of Raw Material, Finished goods, Spares and Stores, Packing Material, etc. are valued at lower of cost or net realizable value except waste which is valued at estimated net realizable value. Cost is computed on a weighted average basis. Cost of inventories comprise of cost of purchase, cost of conversion and other costs including manufacturing overheads incurred in bringing them to their respective present location and condition. The net realizable value is the estimated selling price in the ordinary course of business less the estimated cost of completion and estimated cost necessary to make the sale.

(6) Financial Instruments

i. Recognition and initial measurement

All financial assets and financial liabilities are initially recognized when the Company becomes a party to the contractual provisions of the instrument.

A financial asset or financial liability is initially measured at fair value plus, for an item not at fair value through profit and loss (FVTPL), transaction costs that are directly attributable to its acquisition or issue. Trade receivables that do not contain a significant financing component are measured at the transaction price determined under Ind AS 115.

ii. Classification and subsequent measurement Financial assets

On initial recognition, a financial asset is classified as measured at

• amortized cost;

• Fair Value through Other Comprehensive Income (FVOCI) – equity investment; or

• Fair Value Through Profit and Loss (FVTPL)

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

A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as at FVTPL:

• the asset is held within a business model whose objective is to hold assets to collect contractual cash flows; and

• the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

On initial recognition of an equity investment that is not held for trading, the Company may irrevocably elect to present subsequent changes in the investment’s fair value in OCI. (designated as FVOCI – equity investment). This election is made on an investment-byinvestment basis.

All financial assets not classified as measured at amortized cost or FVOCI as described above are measured at FVTPL. This includes all derivative financial assets. On initial recognition, the Company may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortized cost or at FVOCI or at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

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PBM POLYTEX LIMITED

NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31[ST] MARCH, 2025

Financial liabilities

Financial liabilities are classified as measured at amortized cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as held-for-trading, or it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognized in profit or loss. Other financial liabilities are subsequently measured at amortized cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognized in profit or loss. Any gain or loss on de-recognition is also recognized in profit or loss.

De-recognition

Financial assets

The company de-recognizes a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the company neither transfers nor retains substantially all of the risks and rewards of ownership and does not retain control of the financial asset.

If the company enters into transactions whereby it transfers assets recognized on its balance sheet, but retains either all or substantially all of the risks and rewards of the transferred assets, the transferred assets are not derecognized.

Financial liabilities

The company de-recognizes a financial liability when its contractual obligations are discharged or cancelled, or expire. The company also de-recognizes a financial liability when its terms are modified and the cash flows under the modified terms are substantially different. In this case, a new financial liability based on the modified terms is recognized at fair value. The difference between the carrying amount of the financial liability extinguished and the new financial liability with modified terms is recognized in profit or loss.

Off-setting

Financial assets and financial liabilities are offset and the net amount presented in the balance sheet when, and only when, the company currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realize the asset and settle the liability simultaneously.

(7)

Revenue recognition

Revenue is measured at the value of the consideration received or receivable, after deduction of any trade discount, volume rebates and any taxes or duties collected on behalf of Government such as Goods and Services Tax, etc.

The Company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the Company and specific criteria have been met for each of the Company’s activities as described below.

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PBM POLYTEX LIMITED

NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31[ST] MARCH, 2025

Sale of goods

Revenue from sale of goods is recognised when control of the products being sold is transferred to our customers and there are no longer any unfulfilled obligations. The performance obligations in our contracts are fulfilled at the time of dispatch, delivery or upon formal customer acceptance depending on customer terms.

Sale of Service

Revenue from contract with customers for job work charges is recognised on the basis of percentage of completion method.

Other revenue:

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable rate of interest.

Revenue in respect of insurance/other claims etc, is recognized only when it is reasonably certain that the ultimate collection will be made.

Dividends are generally recognised in the Statement of Profit and Loss only when the right to receive is established.

(8) Foreign Currency Transactions:

Foreign currency transactions are translated into the functional currency using exchange rate at the date of the transaction. Foreign exchange gains and losses from the settlement of these transactions are recognized in the statement of profit and loss. Foreign currency denominated monetary assets and liabilities are translated into functional currency at the exchange rates in effect at the balance sheet date, the gain or loss arising on such translations are recognized in the statement of profit and loss.

(9)

Income tax

Income tax expense represents the sum of tax currently payable and deferred tax. Tax is recognized in the Statement of Profit and Loss, except to the extent that it relates to items recognized directly in equity or in other comprehensive income.

(a) Current Tax

Current tax includes provision for Income Tax computed under Special provision (i.e., Minimum alternate tax) or normal provision of Income Tax Act. Tax on Income for the current period is determined on the basis on estimated taxable income and tax credits computed in accordance with the provisions of the relevant tax laws and based on the expected outcome of assessments/appeals.

(b) Deferred Tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the balance sheet and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences.

Deferred tax assets are generally recognised for all deductible temporary differences, unabsorbed losses and unabsorbed depreciation to the extent that it is probable that

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PBM POLYTEX LIMITED

NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31[ST] MARCH, 2025

future taxable profits will be available against which those deductible temporary differences, unabsorbed losses and unabsorbed depreciation can be utilised.

The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the balance sheet date. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis.

(10) Provisions, contingent liabilities and contingent assets

Provisions are recognised when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. Provisions are not recognised for future operating losses.

Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense.

Contingent Liabilities are disclosed in respect of possible obligations that arise from past events but their existence will be confirmed by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the Company or where any present obligation cannot be measured in terms of future outflow of resources or where a reliable estimate of the obligation cannot be made.

A contingent asset is a possible asset arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company. Contingent assets are not recognised till the realisation of the income is virtually certain. However the same are disclosed in the financial statements where an inflow of economic benefit is possible.

(11) Employee benefits

Short-term obligations

Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognised in respect of employees’ services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled.

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PBM POLYTEX LIMITED

NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31[ST] MARCH, 2025

Other long-term employee benefit obligations

The liabilities for earned leave and sick leave that are not expected to be settled wholly within 12 months are measured as the present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the projected unit credit method.

Post-employment obligations

The Company operates the following post-employment schemes:

• (a) defined benefit plans such as gratuity; and

• (b) defined contribution plans such as provident fund.

Gratuity obligations

The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plan is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by actuaries using the projected unit credit method.

The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related obligation.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the Statement of Profit and Loss.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the balance sheet.

Gratuity liability of employees is funded with the approved gratuity trusts.

Defined Contribution Plans

Defined Contribution Plans such as Provident Fund, etc., are charged to the Statement of Profit and Loss as incurred. The Company contributes to Superannuation Trust for the Managerial Personnel of the Company as per the rules of the Trust.

(12) Borrowing costs

Interest and other borrowing costs attributable to qualifying assets are capitalised. Other interest and borrowing costs are charged to Statement of Profit and Loss.

(13) Earnings Per Share

Basic earnings per share

Basic earnings per share is calculated by dividing:

• the profit attributable to owners of the Company

• Average number of equity shares outstanding during the financial year, adjusted for bonus elements in equity shares issued during the year and excluding treasury shares.

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PBM POLYTEX LIMITED

NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31[ST] MARCH, 2025

Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account:

• the after income tax effect of interest and other financing costs associated with dilutive potential equity shares, and

• the weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive potential equity shares.

(14) Impairment of Assets:

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable Value. An impairment loss is charged to the statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognized in earlier accounting period is reversed if there has been a change in the estimate of recoverable amount.

(15) Leases :

The Company has adopted Ind AS 116-Leases effective 1st April, 2019, using the modified retrospective method. The Company has applied the standard to its leases with the cumulative impact recognised on the date of initial application (April 1, 2019).

As a Leasee

At inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

The Company recognises a Right-of-Use (ROU) asset and a lease liability at the lease commencement date. The ROU asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payment made at or before the commencement date, plus any initial direct cost incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentive received.

The ROU asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the ROU asset or the end of the lease term. The estimated useful lives of ROU assets are determined on the same basis as those of Property, Plant and Equipment. In addition, the ROU asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate.

Short-term leases and leases of low-value assets

The Company has elected not to recognise right-to-use assets and lease liabilities for short-term lease that have a lease term of 12 months or less and leases of low-value assets. The Company recognise the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

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PBM POLYTEX LIMITED

NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31[ST] MARCH, 2025

As a Lessor

The company, as a lessor, classifies a lease either as an operating lease or a finance lease. Leases are classified as finance lease whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases. The Company recognises lease payments received under operating leases as income on a straightline basis over the lease term.

(16) Cash and Cash Equivalents

Cash and cash equivalents comprise cash in hand, cash at bank, demand deposits with banks, other short-term highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

(17) Events occurring after the balance sheet date

Assets and liabilities are adjusted for events occurring after the reporting period that provides additional evidence to assist the estimation of amounts relating to conditions existing at the end of the reporting period.

1C RECENT ACCOUNTING PRONOUNCEMENTS

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. During the year ended 31[st] March, 2025, MCA has notified Ind AS 117 – “Insurance Contracts” and amendments to Ind AS 116 – “Leases”, relating to sale and lease back transactions, applicable from 1[st] April, 2024. The Company has assessed that there is no impact on its financial statements.

On 9[th] May, 2025, MCA notified the amendments to Ind AS 21 – “Effects of Changes in Foreign Exchange Rates”. These amendments aim to provide clearer guidance on assessing currency exchangeability and estimating exchange rates when currencies are not readily exchangeable. The amendments are effective for annual periods beginning on or after 1[st] April, 2025. The Company is currently assessing the probable impact of these amendments on its financial statements.

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PBM POLYTEX LIMITED

NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025

2. Property, plant and equipment	2. Property, plant and equipment	2. Property, plant and equipment	2. Property, plant and equipment	2. Property, plant and equipment	2. Property, plant and equipment	2. Property, plant and equipment	2. Property, plant and equipment	2. Property, plant and equipment	(Rs. in Lakhs)	(Rs. in Lakhs)	(Rs. in Lakhs)
Particular	*Freehold Land	Building	Plant and Equipment	Electric Installation	Furniture and fixtures	Vehicles	Office equipment	Computers	Right-of- Use Assets		Total
									Leasehold Land	Other Assets
Gross Value
Balance as at 1st April, 2023	137.25	2,270.99	11,748.76	537.28	177.61	388.32	62.20	45.36	25.36	30.23	15,423.36
Additions	-	-	545.03	0.53	2.50	39.24	3.73	4.16	-	-	595.19
Deduction & Adjustment	-	5.64	117.60	-	8.45	14.93	1.82	8.81	-	-	157.25
Balance as at 31st March, 2024	137.25	2,265.35	12,176.19	537.81	171.66	412.63	64.11	40.71	25.36	30.23	15,861.30
Additions	-	37.54	88.04	0.37	3.45	21.99	5.02	3.19	-	-	159.60
Deduction & Adjustment	-	-	63.00	-	0.09	9.61	0.94	3.18	-	-	76.82
Balance as at 31st March, 2025	137.25	2,302.89	12,201.22	538.18	175.02	425.01	68.19	40.72	25.36	30.23	15,944.08
Accumulated Depreciation
Balance as at 1st April, 2023	-	1,217.61	8,012.17	490.83	144.66	259.76	40.92	42.57	1.08	5.99	10,215.59
Depreciaton for theyear	-	51.91	262.06	3.47	5.10	25.31	7.31	3.01	0.36	4.92	363.45
Deduction & Adjustment	-	4.38	99.16	-	7.78	14.21	1.73	8.38	-	-	135.64
Balance as at 31st March, 2024	-	1,265.14	8,175.07	494.30	141.98	270.86	46.50	37.20	1.44	10.91	10,443.40
Depreciaton for theyear	-	42.07	270.61	3.36	4.91	29.26	6.85	3.18	0.36	4.92	365.51
Deduction & Adjustment			54.62	-	0.09	8.72	0.90	3.02	-	-	67.34
Balance as at 31st March, 2025	-	1,307.21	8,391.06	497.66	146.80	291.40	52.45	37.36	1.80	15.83	10,741.57
Net carrying amount
Balance as at 31st March, 2024	137.25	1,000.21	4,001.12	43.51	29.68	141.77	17.61	3.51	23.92	19.32	5,417.90
Balance as at 31st March, 2025	137.25	995.68	3,810.16	40.52	28.23	133.61	15.73	3.36	23.56	14.40	5,202.51

• Includes 100 Shares of Rs.10/- each (fully paid up) of The Friends Co-operative Housing Society Limited, Baroda.

• 2.1 All the title deeds for the immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) are in the name of the Company.

• 2.2 The Company has not done revaluation of PPE / Intangible assets.

• 2.3 Refer note no. 22.1 for details of charge created against the above mentioned assets.

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PBM POLYTEX LIMITED

NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025

(Rs. in Lakhs)

3 Capital Work in Progress

3 Capital Work in Progress
Particulars	As at 31/03/2025	As at 31/03/2024
Project in Progress	69.02	69.14
Total	69.02	69.14

3.1 Details of Capital work in progress Ageing

Ageing of Capital work-in-progress as at 31/03/2025 is as follows Project In Progress

Project In Progress
Particulars	Amount in Capital work-in-progress for the Period of				Total
	Less than 1 Year	1-2 Year	2-3 Year	More than 3 Years
As at 31st March,2025	69.02	-	-	-	69.02
As at 31st March,2024	69.14	-	-	-	69.14

Note :

There are no projects under Capital Work in Progress where the completion is overdue or has exceeded its cost compared to its original plan.

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PBM POLYTEX LIMITED

NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025

(Rs. in Lakhs)

(Rs. in Lakhs)	(Rs. in Lakhs)
4. Intangible Assets
Particular	Computer Software
Gross Value
Balance as at 1st April, 2023	28.35
Additions	-
Deduction & Adjustment	-
Balance as at 31st March, 2024	28.35
Additions	-
Deduction & Adjustment	-
Balance as at 31st March, 2025	28.35
Amortization
Balance as at 1st April, 2023	20.14
Deduction & Adjustment	-
Amortization for theyear	2.41
Balance as at 31st March, 2024	22.55
Deduction & Adjustment	-
Amortization for theyear	2.13
Balance as at 31st March, 2025	24.68
Net carrying amount
Balance as at 31st March, 2024	5.80
Balance as at 31st March, 2025	3.67

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PBM POLYTEX LIMITED

NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025

5. Investments(Non-Current)	(Rs. in Lakhs)	(Rs. in Lakhs)	(Rs. in Lakhs)	(Rs. in Lakhs)
PARTICULARS	As at 31/03/2025		As at 31/03/2024
	Nos.	Rs. In Lakhs	Nos.	Rs. In Lakhs
Investments measured at Fair Value Through Profit & Loss In Equity Shares of Associate Companies Quoted, Fully Paid Up
M/s Eurotex Industries and Exports Limited (of Rs. 10 each)	22,31,980	280.34	22,31,980	312.48
Total of Investments measured at Fair Value Through Profit & Loss Investments measured at Amortized Cost In Preference Shares of Associate Companies Unquoted, Fully Paid Up		280.34		312.48
6% Non- Cumulative Non- convertible Redeemable Preference Shares of Rs. 10/- each of M/s Eurotex Industries and Exports Limited	46,00,000	186.17	46,00,000	172.38
Total of Investments measured at Amortized Cost		186.17		172.38
Total Non Current Investments		466.51		484.86
Aggregate amount of quoted Investments Market Value of quoted Investments Aggregage amount of unquoted Investments		280.34 280.34 186.17		312.48 312.48 172.38

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PBM POLYTEX LIMITED

NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025

(Rs. in Lakhs)

6. Other Financial Assets (Non Current)

6. Other Financial Assets(Non Current)
Particulars	As at 31/03/2025	As at 31/03/2024
Unsecured, Considered Good
SecurityDeposits
- Deposits with Related Parties	2.00	2.00
- Deposits with Others	84.32	81.03
Fixed Deposits with Banks*	0.00	0.08
Total	86.32	83.11

*given as security deposit to sales tax authorities

7. Other Non Current Assets

7. Other Non Current Assets
Particulars	As at 31/03/2025	As at 31/03/2024
Unsecured, Considered Good
Capital Advances	25.57	26.06
Others	45.54	0.71
Total	71.11	26.77
8. Inventories

8. Inventories
Particulars	As at 31/03/2025	As at 31/03/2024
Raw materials	2,972.04	4,014.82
Stores, Spares & Fuel (including Goods in Transit of Rs.19.65 Lakhs,	187.99	157.37
PY Rs. 14.49 Lakhs)
Finishedgoods	1,180.90	1,102.09
Work in Process	326.01	299.78
Cotton Waste	40.42	46.60
Total	4,707.36	5,620.67

For valuation method of Inventories, refer note no. 1B(5). Refer note no. 22.1 for details of charges created against inventories.

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9. Investments(Current)
PARTICULARS	As at 31/03/2025		As at 31/03/2024
	Units	Rs. In Lakhs	Units	Rs. In Lakhs
Investments measured at Fair Value Through Profit & Loss In Mutual Funds - Quoted
ICICI prudential overnight fund Total Current Investments	-	-	51,930.50	670.18
	-	-	51,930.50	670.18
Aggregate amount of quoted investments Market Value of quoted Investments Aggregage amount of unquoted Investments	- - -	- - -	- - -	670.18 670.18 -

ANNUAL REPORT 2024-25

87

PBM POLYTEX LIMITED

NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025

(Rs. in Lakhs)

(Rs. in Lakhs) PBM POLYTEX LIMITED NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025	(Rs. in Lakhs) PBM POLYTEX LIMITED NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025	(Rs. in Lakhs) PBM POLYTEX LIMITED NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025
10. Trade Receivables(Current)
Particulars	As at 31/03/2025	As at 31/03/2024
Unsecured,Considered Good	1,434.69	962.93
Less: Provision for doubtful debts	11.09	-
Total	1,423.60	962.93
Refer Note No. 48 for ageing of trade receivales Refer note no. 22.1 for details of charges created against trade receivables.

11. Cash and Cash Equivalents

11. Cash and Cash Equivalents
Particulars	As at 31/03/2025	As at 31/03/2024
Balances with banks
- In current/cash credit accounts	267.08	285.25
Cash on hand	10.41	17.13
Total	277.49	302.38

12. Bank balances other than mentioned in cash and cash equivalents	12. Bank balances other than mentioned in cash and cash equivalents	12. Bank balances other than mentioned in cash and cash equivalents
Particulars	As at 31/03/2025	As at 31/03/2024
Unclaimed Dividend	12.75	20.12
Fixed Deposits with Banks*	15.37	14.44
Total	28.12	34.56

• under lien for security against margin money / overdraft facility

13. Loans (Current)

Particulars	As at 31/03/2025	As at 31/03/2024
Unsecured - Consideredgood
Loans to Employees	28.55	23.68
Secured - Consideredgood
Loans to Related Parties
-Inter Corporate Deposit with Associate Company	300.00	300.00
Total	328.55	323.68
14. Other financial assets(Current)
Particulars	As at 31/03/2025	As at 31/03/2024
Interest receivable	65.89	46.98
Total	65.89	46.98
15. Current tax asset(Net)
Particulars	As at 31/03/2025	As at 31/03/2024
Advance tax(net offprovision of income tax)	15.92	16.87
Total	15.92	16.87

16. Other Current Assets

16. Other Current Assets
Particulars	As at 31/03/2025	As at 31/03/2024
Unsecured, Considered Good
Advances to Suppliers & Others	241.75	225.79
Balance with Govt. Agencies	177.26	325.73
Prepaid Expenses	73.92	76.80
Total	492.93	628.32

ANNUAL REPORT 2024-25

88

PBM POLYTEX LIMITED

NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025

17 17.1 17.2	Share capital	(Rs. in Lakhs)	(Rs. in Lakhs)	(Rs. in Lakhs)	(Rs. in Lakhs)
	Particulars	As at 31/03/2025		As at 31/03/2024
		Units	Rs.	Units	Rs.
	Authorised Share Capital :
	EquityShares of Rs. 10 each	1,00,00,000	1,000.00	1,00,00,000	1,000.00
	Issued & Subscribed :
	EquityShares of Rs. 10 each	68,80,000	688.00	68,80,000	688.00
	Subscribed and Fully Paid Up
	EquityShares of Rs. 10 each	68,79,020	687.90	68,79,020	687.90
	Forfeited Shares
	EquityShares of Rs. 10 each	‐	‐	‐	‐
	Total	68,79,020	687.90	68,79,020	687.90
	The reconciliation of the no. of shares outstanding is
	Particulars	As at 31/03/2025	As at 31/03/2024
	Equity shares
	At Beginningof theperiod	68,79,020	68,79,020
	Add : Issued duringtheyear	‐	‐
	At End of theperiod	68,79,020	68,79,020
	Name of the shareholder	As at 31/03/2025		As at 31/03/2024
		Units	% of holding	Units	% of holding
	M/s Eurotex Industries & Exports Ltd.	3,58,345	5.21	3,58,345	5.21
	M/s Sambhu Investments Pvt Ltd	7,79,320	11.33	7,79,320	11.33
	M/s Patodia Syntex Ltd.	7,12,957	10.36	7,12,957	10.36
	M/s Trikon Investments Pvt Ltd	5,57,834	8.11	5,57,834	8.11

• 17.3 The Company has only one class of shares i.e. equity shares. All equity shares carry equal rights with respect to voting and dividend.

17.4 In the event of liquidation of the Company, the equity shareholders shall be entitled to proportionate share of their holding in the assets remaining after distribution of all preferential amounts.

17.5 Disclosure of Shareholding of Promoters

Disclosure of shareholding of promoters as at 31st March, 2025 is as follows

Promoter Name	As at 31/03/2025	As at 31/03/2025	As at 31/03/2024	As at 31/03/2024	% Change during the year
	No. of Shares	% of holding	No. of Shares	% of holding
Sambhu Investments Pvt Ltd	7,79,320	11.33	7,79,320	11.33	‐
Patodia Syntex Ltd	7,12,957	10.36	7,12,957	10.36	‐
Trikon Investments Pvt Ltd	5,57,834	8.11	5,57,834	8.11	‐
Eurotex Industries and Exports Limited	3,58,345	5.21	3,58,345	5.21	‐
Rajiv Agencies LLP	2,22,848	3.24	2,22,848	3.24	‐
Manju Patodia	2,16,744	3.15	2,16,744	3.15	‐
Madhu Patodia	2,12,594	3.09	2,12,594	3.09	‐
Rani Krishan Kumar Patodia	2,10,511	3.06	2,10,511	3.06	‐
Hari Prasad Siotia	1,99,280	2.90	1,99,280	2.90	‐
Anita Patodia	1,48,194	2.15	1,48,194	2.15	‐
Nandini Narayan Patodia	1,48,194	2.15	1,48,194	2.15	‐
Krishan Kumar Patodia	1,41,028	2.05	1,41,028	2.05	‐
Shashank Investments Private Limited	89,512	1.30	89,512	1.30	‐
Amit Patodia	78,980	1.15	78,980	1.15	‐
Shakuntala Devi Patodia	74,386	1.08	74,386	1.08	‐
Siddharth krishan kumarpatodia	69,007	1.00	69,007	1.00	‐
Narayan Patodia	68,849	1.00	68,849	1.00	‐
Mohankumarpatodia	67,998	0.99	67,998	0.99	‐
Aditi Jussawalla	63,467	0.92	63,467	0.92	‐
Priyagopalpatodia	56,553	0.82	56,553	0.82	‐
Chandramauli Investment Pvt Ltd	56,314	0.82	56,314	0.82	‐
Vikashpatodia	49,518	0.72	49,518	0.72	‐
Yashvardhan Narayan Patodia	47,173	0.69	47,173	0.69	‐
Devan Patodia	45,917	0.67	45,917	0.67	‐
Gaurav Narayan Patodia	44,995	0.65	44,995	0.65	‐
Gopal Patodia	27,369	0.40	27,369	0.40	`
Shailja Patodia	3,125	0.05	3,125	0.05	‐
Maharashtra Fibre and Syntex Ltd.	447	0.01	447	0.01	‐
Thrust Investment and Management Consultants LLP	6,473	0.09	6,473	0.09	‐
~~ANNUAL REPORT 2024-25~~	~~89~~

PBM POLYTEX LIMITED

NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025 Disclosure of shareholding of promoters as at 31st March, 2024 is as follows

Promoter Name	As at 31/03/2024	As at 31/03/2024	As at 31/03/2023	As at 31/03/2023	% Change during the year
	No. of Shares	% of holding	No. of Shares	% of holding
Sambhu Investments Pvt Ltd	7,79,320	11.33	7,79,320	11.33	‐
Patodia Syntex Ltd	7,12,957	10.36	7,12,957	10.36	‐
Trikon Investments Pvt Ltd	5,57,834	8.11	5,57,834	8.11	‐
Eurotex Industries and Exports Limited	3,58,345	5.21	3,58,345	5.21	‐
Rajiv Agencies LLP	2,22,848	3.24	2,22,848	3.24	‐
Manju Patodia	2,16,744	3.15	2,16,744	3.15	‐
Madhu Patodia	2,12,594	3.09	2,12,594	3.09	‐
Rani Krishan Kumar Patodia	2,10,511	3.06	2,10,511	3.06	‐
Hari Prasad Siotia	1,99,280	2.90	1,99,280	2.90	‐
Anita Patodia	1,48,194	2.15	1,48,194	2.15	‐
Nandini Narayan Patodia	1,48,194	2.15	1,48,194	2.15	‐
Krishan Kumar Patodia	1,41,028	2.05	1,41,028	2.05	‐
Shashank Investments Private Limited	89,512	1.30	89,512	1.30	‐
Amit Patodia	78,980	1.15	78,980	1.15	‐
Shakuntala Devi Patodia	74,386	1.08	74,386	1.08	‐
Siddharth krishan kumarpatodia	69,007	1.00	69,007	1.00	‐
Narayan Patodia	68,849	1.00	68,849	1.00	‐
Mohankumarpatodia	67,998	0.99	67,998	0.99	‐
Aditi Jussawalla	63,467	0.92	63,467	0.92	‐
Priyagopalpatodia	56,553	0.82	56,553	0.82	‐
Chandramauli Investment Pvt Ltd	56,314	0.82	56,314	0.82	‐
Vikashpatodia	49,518	0.72	49,518	0.72	‐
Kirti Patodia	‐	‐	47,173	0.69	(0.69)
Yashvardhan Narayan Patodia	47,173	0.69	47,173	0.69	‐
Devan Patodia	45,917	0.67	45,917	0.67	‐
Gaurav Narayan Patodia	44,995	0.65	44,995	0.65	‐
Gopal Patodia	27,369	0.40	27,369	0.40	‐
Shailja Patodia	3,125	0.05	3,125	0.05	‐
Maharashtra Fibre and Syntex Ltd.	447	0.01	447	0.01	‐
Thrust Investment and Management Consultants LLP	6,473	0.09	6,473	0.09	‐

ANNUAL REPORT 2024-25

90

PBM POLYTEX LIMITED

NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025

(Rs. in Lakhs)

18. Other Equity	18. Other Equity	18. Other Equity
Particulars	As at 31/03/2025	As at 31/03/2024
Share Capital Forfeiture	0.23	0.23
General Reserve	10,442.62	10,442.62
Share Capital Redemption Reserve	125.00	125.00
Surplus in Statement of Profit & Loss
Balance at the beginningof the Year	790.42	1,384.15
Add: Total Comprehensive Income/(Loss)for theyear	(385.26)	(593.74)
Balance at the end of the Year	405.16	790.42
Total	10,973.01	11,358.27

Share Capital Redemption Reserve

Capital Redemption Reserve represents reserve created during buy back of Equity Shares and it is a nondistributable reserve.

General Reserve

General Reserve has been created by transfer out of profit generated by the Company and is available for distribution to shareholders. Under the erstwhile Companies Act, 1956, a general reserve was created through an annual transfer of net profit at a specified percentage in accordance with applicable regulations. Consequent to the introduction of the Companies Act, 2013, the requirement to mandatory transfer a specified percentage of net profit to general reserve has been withdrawn.

Retained Earnings

Retained earnings are the profits that the Company has earned till date including effect of remeasurement of defined benefit obligations less any transfers to general reserve, dividends or other distributions paid to shareholders. Retained Earnings is a free reserve available to the Company.

19. Other financial liabilities (Non Current)

19. Other financial liabilities(Non Current)
Particulars	As at 31/03/2025	As at 31/03/2024
Security Deposits (From Debtors,Employees and Contractors)	1.00	1.20
Total	1.00	1.20

ANNUAL REPORT 2024-25

91

PBM POLYTEX LIMITED

NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025

(Rs. in Lakhs)

(Rs. in Lakhs) PBM POLYTEX LIMITED NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025	(Rs. in Lakhs) PBM POLYTEX LIMITED NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025	(Rs. in Lakhs) PBM POLYTEX LIMITED NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025
20. Provisions(Non Current)
Particulars	As at 31/03/2025	As at 31/03/2024
Provision for employee benefits
- Leave Encashment(unfunded)	73.47	74.08
Total	73.47	74.08

21. Deferred Tax Liabilities (Net)

21. Deferred Tax Liabilities(Net)
Particulars	As at 31/03/2025	As at 31/03/2024
LiabilityRelatingto earlieryears	375.87	560.52
Add/(Less): Liability/(Assest)for theyear
- Charged/(Credited)to P & L	(161.86)	(196.73)
- Charged/(Credited)to OCI	27.77	12.07
TOTAL	241.78	375.87

21.1 Component of Deferred Tax Liabilities (Net)

21.1 Component of Deferred Tax Liabilities(Net)
Particulars	As at 31/03/2025	As at 31/03/2024
Depreciation	752.88	759.56
Employee Benefits	3.88	(12.50)
Carried forward losses/unabsorbed depreciation	(375.62)	(251.66)
Other TimingDifferences	(139.36)	(119.54)
TOTAL	241.78	375.87
21.2 Component of Deferred Tax Expense/ (Income)
Particulars	2024-25	2023-24
- Charged/(Credited) to P & L
Depreciation	(6.68)	27.63
Employee Benefits	(11.39)	7.21
Carried forward losses/unabsorbed depreciation	(123.96)	(251.66)
Other TimingDifferences	(19.83)	20.09
	(161.86)	(196.73)
- Charged/(Credited) to OCI
Employee Benefits	27.77	12.07
	27.77	12.07
TOTAL	(134.09)	(184.66)
22. Borrowings (Current)
Particulars	As at 31/03/2025	As at 31/03/2024
Current Interest-bearing loans and borrowings
Working Capital Facilities
From banks
Secured	16.80	107.85
Total	16.80	107.85

ANNUAL REPORT 2024-25

92

PBM POLYTEX LIMITED

NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025

(Rs. in Lakhs)

22.1 Details of Security and Interest of working capital facilities from banks

22.1 Details of Security and Interest of working capital facilities from banks	(Rs. in Lakhs)
Nature of Security	Terms of Interest
IDBI Bank: Primary Security - First pari passu charge over current assets of the company. Collateral Security - First pari passu charge over fixed assets of the company.	RLRR plus 185 bps p.a.
State Bank of India: Primary Security - First charge on pari passu basis over the hypothecation of entire current assets of the company with IDBI. Collateral Security - First pari passu charge over the entire fixed assets of the company including hypothecation over plant and machinery and mortgage over land and building of the company.	2.80% above MCLR- 6M

23. Trade Payables (Current)

23. Trade Payables(Current)
Particulars	As at 31/03/2025	As at 31/03/2024
Total outstanding dues of micro & small Enterprises (Refer Note No. 49.1)	13.92	9.14
Total outstanding dues of creditors other than micro & small enterprises	350.20	213.32
Total	364.12	222.46

(Refer Note No. 49.2 For ageing of trade payables)

24. Other Financial Liabilities (Current)

Particulars	As at 31/03/2025	As at 31/03/2024
Unclaimed dividends*	12.75	20.12
Dues to Employees and others	157.40	192.90
Total	170.15	213.02

* There are no amounts due for payment to Investor Education and Protection Fund under Section 125 of the Companies Act, 2013 as at year end.

25. Other Current liabilities

25. Other Current liabilities
Particulars	As at 31/03/2025	As at 31/03/2024
Credit Balances of customers	5.24	1,208.76
SecurityDeposit from Customer	307.02	-
StatutoryDues	44.49	40.41
Other Payables	221.87	266.89
Total	578.62	1,516.06

26. Provisions (Current)

26. Provisions(Current)
Particulars	As at 31/03/2025	As at 31/03/2024
Provision for employee benefits
- Leave Encashment(unfunded)	34.90	39.08
- Bonus	79.63	75.81
Total	114.53	114.89

ANNUAL REPORT 2024-25

93

PBM POLYTEX LIMITED

NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025

(Rs. in Lakhs)

(Rs. in Lakhs) PBM POLYTEX LIMITED NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025	(Rs. in Lakhs) PBM POLYTEX LIMITED NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025	(Rs. in Lakhs) PBM POLYTEX LIMITED NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025
27. Revenue from Operations
Particulars	2024-25	2023-24
Sale of Products	17,266.59	18,872.58
Sale of Services(Job Work Charges)	125.87	7.22
Other OperatingRevenue
-Sale of Scrap	8.53	11.19
-Export Incentive Income	220.49	266.12
Total	17,621.48	19,157.11
27.1 Sale of Products
Name of Products	2024-25	2023-24
Yarn sales	16,199.35	17,606.70
Cotton/Yarn Waste Sales	941.92	1,140.22
Sale of ElectricityUnits	125.32	125.67
Total	17,266.59	18,872.58
28. Other income
Particulars	2024-25	2023-24
Interest income on financial assets measured at amortised cost :
- Fixed deposits	1.14	0.79
- Securitydeposits	4.99	4.95
- Loan to relatedparty	21.00	21.00
- Preference shares	13.79	12.77
- Others	2.22	4.59
Effect of fair valuation of investments through FVTPL	-	22.16
Net Gain on sale of Investments	145.45	132.97
Insurance claims Recevied	2.71	0.95
Gain on sale ofproperty, plant and equipment	5.08	111.56
Foreign Exchange Fluctuation Gain	0.00	3.01
Excess Provision/SundryBalances written back	1.62	128.45
Other Miscellaneous Income	0.25	0.12
Total	198.25	443.31

ANNUAL REPORT 2024-25

94

PBM POLYTEX LIMITED

NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025

(Rs. in Lakhs)

29. Cost of materials consumed	29. Cost of materials consumed	29. Cost of materials consumed
Particulars	2024-25	2023-24
OpeningStock	4,014.82	1,668.96
Add : Purchases	11,137.14	15,858.61
Sub Total	15,151.96	17,527.57
Less : ClosingStock	2,972.03	4,014.82
Total	12,179.93	13,512.75
30. Changes in Inventories of Finishedgoods, WIP and Waste
Particulars	2024-25	2023-24
Inventories at the beginning of theyear
Finished Goods	1,102.09	1,413.72
WIP	299.78	331.34
Waste	46.60	94.44
Sub Total	1,448.47	1,839.51
Less : Inventories at the end of theyear
Finished Goods	1,180.90	1,102.09
WIP	326.01	299.78
Waste	40.42	46.60
Sub Total	1,547.33	1,448.48
Net Decrease/ (Increase) in Inventories	(98.86)	391.03
31. Employee benefit expense
Particulars	2024-25	2023-24
Salaries,wages and bonus	1,970.54	1,954.49
Contribution toprovident and other funds	147.16	143.75
Gratuityexpense(Refer Note No. 42)	46.36	44.98
Staff welfare expenses	98.97	78.92
Total	2,263.04	2,222.14
32. Finance costs
Particulars	2024-25	2023-24
Interest Expenses	1.77	5.03
Interest on lease liability	2.04	2.48
Other BorrowingCosts	43.65	47.14
Total	47.46	54.65

ANNUAL REPORT 2024-25

95

(Rs. in Lakhs)

PBM POLYTEX LIMITED

NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025

33. Depreciation and Amortization Expenses	33. Depreciation and Amortization Expenses	33. Depreciation and Amortization Expenses
Particulars	2024-25	2023-24
Depreciation on Property,Plant & Equipment	360.23	358.18
Amortization of Intangible Assets	2.13	2.40
Amortization of Leasehold Land	0.36	0.36
Depreciation on Other Right-of-Use Assets	4.92	4.92
Total	367.64	365.86
34. Other expenses
Particulars	2024-25	2023-24
Consumption of stores andpackingmaterial	344.72	358.22
Power and fuel	2,173.04	2,398.22
Rent Expense	46.10	50.35
Repairs:-
- Machinery (includingspares)	208.09	219.19
- Building	50.10	33.36
- Others	46.49	38.85
Insurance	58.95	76.42
Rates and Taxes	16.93	13.86
Licence Fees,Legal & Professional Charges	72.61	69.38
Sales and Distribution Expenses	343.66	394.70
Travellingand conveyance	161.87	148.37
Directors SittingFees	8.10	6.00
Audit Fees and Expenses(Refer Note No. 34.1)	7.76	7.12
Donation	6.85	2.33
Foreign Exchange Fluctuation Loss	4.07	5.04
CSR Expenses(Refer Note No. 39)	-	10.65
Effect of fair valuation of investments through FVTPL	33.32	-
Provision for Doubtful Debts	11.09	-
Other General Expenses	96.80	60.83
Total	3,690.55	3,892.90

34.1 Auditor's Remuneration

34.1 Auditor's Remuneration
Particulars	2024-25	2023-24
As auditor :
Audit fees	5.50	5.00
Tax Audit Fees	1.00	1.00
Reimbursement of expenses	1.26	1.12
Total	7.76	7.12

ANNUAL REPORT 2024-25

96

PBM POLYTEX LIMITED

NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025

(Rs. in Lakhs)

35. Earning Per Share

35. Earning Per Share		(Rs. in Lakhs)
Particulars	2024‐25	2023‐24
Net Profit/(Loss) for the year attributable to Equity Shareholders (Rs. In Lakhs)	(467.82)	(629.63)
Weighted Average number of Equity Shares outstanding of Face Value of Rs. 10 each.(Nos.)	68,79,020	68,79,020
Number of EquityShares for Basic EPS(Nos.)	68,79,020	68,79,020
Add : Diluted Potential EquityShares(Nos.)	‐	‐
Number of EquityShares for Diluted EPS(Nos.)	68,79,020	68,79,020
Basic EarningPer Share(Rs.)	(6.80)	(9.15)
Diluted EarningPer Share(Rs.)	(6.80)	(9.15)
Nominal Value Per Share(Rs.)	10.00	10.00

36. Disclosure under Ind As 116 ‐ Leases

36.1 Lease liabilities included in financial statements

36. Disclosure under Ind As 116 ‐ Leases 36.1 Lease liabilities included in financial statements
Particulars	As at 31/03/2025	As at 31/03/2024
Current	5.95	4.93
Non‐Current	11.67	17.62
Total	17.62	22.56
36.2 Movement in Lease Liability during theyear
Particulars	2024‐25	2023‐24
Balance at the beginningof theyear	22.56	26.57
Additions	‐	‐
Finance Cost accrued duringtheyear	2.04	2.48
Payment of Lease Liabilities(includinginterest)	(6.97)	(6.49)
Balance at the end of theyear	17.62	22.56
36.3 Maturity Analysis of Undiscounted cash flow of the lease liability
Particulars	As at 31/03/2025	As at 31/03/2024
Less than 1year	7.45	6.97
1 to 5years	8.65	15.45
More than 5years	39.02	40.32
36.4 Movement in Right to Use of Assets during theyear
Particulars	2024‐25	2023‐24
(A) Leasehold Land
Balance at the beginningof theyear	23.92	24.28
Addition duringtheyear	0.00	0.00
Amortisation duringtheyear	(0.36)	(0.36)
Balance at the end of theyear	23.56	23.92
(B) Buildings
Balance at the beginningof theyear	19.32	24.24
Addition duringtheyear	‐	‐
Amortisation duringtheyear	(4.92)	(4.92)
Balance at the end of theyear	14.40	19.32

36.5 Expense relating to short‐term leases are disclosed under the head rent expense in other expenses (Refer Note

34). ANNUAL REPORT 2024-25

97

PBM POLYTEX LIMITED

NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025

(Rs. in Lakhs)

36.6 Amount recognised in statement of profit and loss:

36.6 Amount recognised in statement ofprofit and loss:
Particulars	2024‐25	2023‐24
Amortization of Leasehold Land	0.36	0.36
Depreciation charged on other Right of Use Assets	4.92	4.92
Interest Expense included in Finance Cost	2.04	2.48

37. Contingent Liabilities and Commitments

37. Contingent Liabilities and Commitments
Particulars	As at 31/03/2025	As at 31/03/2024
Contingent Liabilities
Claim by Director of Industries, Gujarat in Gujarat High Court for non‐ deliveryofyarn in theyear 1978	1.09	1.09
Bills discounted under Export/Inland Letters of Credit	58.30	143.66
Disputed wages against employee which company has preferred appeal before court	120.87	120.87
Commitments
Estimated amount of contracts remaining unexecuted on capital account and notprovided for in Books(net of advances)	220.97	220.97
Other commitments	‐	‐

38. Segment Information

The company manufactures and deals in single segment, i.e. manufacturing of cotton yarn. Therefore no separate disclosure as per Ind AS 108 ‐ "Operating Segments" is given.

38.1 Geographical Information

38.1 Geographical Information
Revenue from external customers	2024‐25	2023‐24
India	13,527.31	14,161.89
Outside India	3,865.14	4,717.92
Total	17,392.46	18,879.81

38.2 There are no Non Current Assets other than in India.

39. Corporate Social Responsibility

Particulars	2024‐25	2023‐24
1. Gross amount required to be spent bythe Company	N.A.	22.64
2. Amount spent duringtheyear
(i)construction/acquisition of anyasset		‐
(ii)onpurposes other than(i)above		10.65
3. Shortfall at the end of theyear		‐
4. Total ofpreviousyears' shortfall		‐
5. Reasons for shortfall		‐
6. The nature of CSR activities undertaken by the Company		‐
‐ PromotingHealthcare		5.00
‐ PromotingEducation		0.65
‐ Promotion of Art and Culture		5.00
‐ Women Empowerment		‐
7. CSR transactions with relatedparties		‐

ANNUAL REPORT 2024-25

98

PBM POLYTEX LIMITED

NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025

(Rs. in Lakhs)

40. Income Taxes	40. Income Taxes	40. Income Taxes
Particulars	2024‐25	2023‐24
The major components of income tax expense for the year as under:
Current tax	‐	‐
Deferred tax(Refer Note No. 21.2)	(134.09)	(184.66)
Adjustment of tax for earlieryears	(0.35)	(12.55)
Total tax expenes charged to statement of Profit and Loss (including OCI)	(134.44)	(197.21)

40.1 Reconcilliation of Effective Tax Rate	40.1 Reconcilliation of Effective Tax Rate	40.1 Reconcilliation of Effective Tax Rate
Particulars	2024‐25	2023‐24
Applicable Tax Rate	25.168%	25.168%
Profit before tax	(630.03)	(838.91)
Other Comprehensive Income	110.33	47.96
Income tax expense at tax rates applicable to individual entities	(130.80)	(199.07)
Expenses that are not decuctible	2.02	3.27
Adjustment of tax for earlieryears	(0.35)	(12.55)
Others	(5.31)	11.13
Income Tax Expenses recongnised in Statement of Profit and Loss	(134.44)	(197.21)

ANNUAL REPORT 2024-25

99

PBM POLYTEX LIMITED

NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025

(Rs. In Lakhs)

41. Related Party Disclosures

As per the Indian Accounting Standard on "Related Party Disclosures" (Ind AS 24), the related parties of the Company are as follows:

41.1 Name of the Related Parties and Nature of Relationship:

Enterprises owned or significantly influenced by key management personnel (with whom the Company entered into transactions during the year)

M/s Patodia Syntex Limited M/s Sambhu Investments Pvt. Limited M/s Shashank Investment Pvt. Limited M/s Veepee Intrades Pvt. Limited M/s B.L.Patodia Family Trust

M/s Murarilal Mahendrakumar M/s Brijlal Purushottamdas M/s Dharamchand Keshardeo M/s Chandramauli Global Ventures LLP M/s Suragini Enterprises LLP

Associate company :

M/s Eurotex Industries and Exports Limited

Key Managerial Personnel, Directors and Relatives:

Shri Gopal Patodia Shri Mohan Kumar Patodia Shri Amit Patodia Smt. Swati Sharda Smt. Kirti Chauhan Smt. Swati Billore Shri Kishankumar Patodia Shri Hari Prasad Siotia Shri Ashok Pandit Shri Rakesh Todi Shri Chirayush Patel Ms. Amishal Modi

Managing Director

Managing Director cum Chief Financial Officer Senior President cum Chief Executive Officer Company Secretary (upto 21/05/2024) Company Secretary (from 11/06/2024 to 11/03/2025) Company Secretary (from 11/03/2025) Chairman Non-Executive Director Independent Director Independent Director Independent Director Independent Director

41.2 Transactions with Related Parties :	(Rs. In Lakhs)	(Rs. In Lakhs)	(Rs. In Lakhs)	(Rs. In Lakhs)
Transactions	Associates & Enterprises owned or Significantly influenced by KMP		Key Managerial Personnel, Directors & Relatives
	2024-25	2023-24	2024-25	2023-24
Purchase of Goods(Net of GST)
- M/s Eurotex Industries and Exports Limited	11.60	4.44	-	-
Purchase of Property,plant & equipment(Net of GST)
- M/s Eurotex Industries and Exports Limited	12.31	-	-	-
Sales of Goods(Net of GST)
- M/s Eurotex Industries and Exports Limited	0.03	-	-	-
Rent Paid(Net of GST)
- M/s Patodia Syntex Limited	1.20	1.20	-	-
- M/s Sambhu Investments Pt. Limited	7.80	7.80	-	-
- M/s B.L.Patodia FamilyTrust	2.88	2.88	-	-
- M/s Murarilal Mahendrakumar	4.50	4.50	-	-
- M/s Brijlal Purushottamdas	1.80	1.80	-	-
- M/s Dharamchand Keshardeo	1.80	1.80	-	-
- M/s Eurotex Industries and Exports Limited	0.90	1.50	-	-

ANNUAL REPORT 2024-25

100

Rent Received(Net of GST)
- M/s Shashank Investment Pvt. Limited	0.03	0.03	-	-
- M/s Veepee Intrades Pvt. Limited	0.03	0.03	-	-
- M/s Chandramauli Investment Pvt. Limited	0.03	0.03	-	-
- M/s Suragini Investment Pvt. Limited	0.03	0.03	-	-
Sitting Fees
Shri Kishankumar Patodia	-	-	0.15	0.15
Shri Hari Prasad Siotia	-	-	0.45	0.45
Shri Ashok Pandit	-	-	2.40	1.65
Shri Rakesh Todi	-	-	1.50	1.65
Shri Chirayush Patel	-	-	2.40	1.20
Ms. Amishal Modi	-	-	1.20	0.90
Interest Income
- M/s Eurotex Industries and Exports Limited	21.00	21.00	-	-
Remuneration to KMP*
- ManagingDirectors	-	-	112.79	115.02
- Senior President cum Chief Executive Officer	-	-	49.35	48.37
- CompanySecretary	-	-	3.89	3.84

*Does not include provision made for gratuity and compensated absences as they are determined on actuarial basis for all employees together.

41.3 Outstanding Balances:	(Rs. In Lakhs)	(Rs. In Lakhs)	(Rs. In Lakhs)	(Rs. In Lakhs)
Transactions	Associates & Enterprises owned or Significantly influenced by KMP		Key Managerial Personnel
	As at 31/03/2025	As at 31/03/2024	As at 31/03/2025	As at 31/03/2024
Security depositsgiven
- M/s Sambhu Inestments Pt. Limited	2.00	2.00	-	-
Investmensts
Investments in 22,31,980 Equity Shares of Rs. 10/- each of M/s. Eurotex Industries and Exports Limited (Stated at Fair Value through Profit & Loss) (Purchase Value Rs. 545.90 Lakhs)	280.34	312.48	-	-
Investments in 46,00,000 6% Non-Cumulative Non-Convertible Redeemable Preference Shares of Rs.10/- each of M/s. Eurotex Industries and Exports Limited. (Stated at Amortized Cost) (Purchase Value Rs. 460 Lakhs)	186.17	172.38	-	-
Loan Given
- M/s Eurotex Industries and Exports Limited	300.00	300.00	-	-
Interest Accrued
- M/s Eurotex Industries and Exports Limited	65.55	46.65	-	-
Trade Receivables/ (Payables)
- M/s Eurotex Industries and Exports Limited	12.67	(0.08)	-	-
Remuneration Payable to
- ManagingDirector	-	-	9.81	11.68
- CompanySecretary	-	-	0.57	0.30
- Senior President	-	-	4.00	4.77

Terms and conditions of transactions with related parties:

Outstanding balances at the year-end are unsecured and interest free (except loan to Associate Company) and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables or payables.

ANNUAL REPORT 2024-25

101

PBM POLYTEX LIMITED

NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025

(Rs. in Lakhs)

42 DISCLOSURES AS REQUIRED BY INDIAN ACCOUNTING STANDARD (IND AS) 19 "EMPLOYEE BENEFITS"

(a) Defined contribution plans

Contribution to defined contribution plans, recognised as expense for the year is as under :

Particulars	2024-25	2023-24
Employer's contribution to Provident Fund	51.70	49.32
Employer's contribution to Superannuation Fund	21.43	17.77
Employer's contribution to Pension Scheme	69.31	70.37

(b) Defined benefit plan

Details of defined benefit obligation and plan assets in respect of retiring gratuity are given below :

i) Reconciliation of opening and closing balances of defined benefit obligation

Particulars	2024-25	2023-24
Present value of obligation as at the beginningof theyear	1,331.53	1,294.96
Interest Cost	81.20	81.42
Current Service Cost	58.61	57.17
Benefits Paid	(54.04)	(57.45)
Actuarial(Gain)/Loss on arisingfrom Change in Financial Assumption	(25.32)	(30.44)
Actuarial(Gain)/Loss on arisingfrom Change Demographic Assumption	(20.38)	10.51
Actuarial(Gain)/Loss on arisingfrom Experience Adjustment	(47.54)	(24.65)
Present value of obligation as at the end of theyear	1,324.05	1,331.53

ii) Reconciliation of opening and closing balances of fair value of plan assets

Particulars	2024-25	2023-24
Fair Value ofplan assets at the beginningof theyear	1,470.97	1,431.42
Interest Income	93.45	93.61
Contributions bythe employer	-	-
Benefitspaid	(54.04)	(57.45)
Return onplan assets	17.09	3.38
Fair Value ofplan assets at the end of theyear	1,527.46	1,470.97

iii) Reconciliation of fair value of assets and obligations

Reconciliation of fair value of assets and obligations
Particulars	As at 31/03/2025	As at 31/03/2024
Fair Value ofplan assets	1,527.46	1,470.97
Present value of obligation	1,324.05	1,331.53
Amount recognised in Balance Sheet[Surplus/(Deficit)]	203.41	139.44
Expenses recognised during theyear
Particulars	2024-25	2023-24
(A) In the Statement of Profit & Loss
Interest Cost	(12.25)	(12.19)
Current Service Cost	58.61	57.17
Net Cost	46.36	44.98
(B) In Other Comprehensive Income
Actuarial(Gain)/Loss	(93.24)	(44.58)
Return on Plan Assets	(17.09)	(3.38)
Net Expense/(Income)recognized in Other Comprehensive Income	(110.33)	(47.96)

iv) Expenses recognised during the year

ANNUAL REPORT 2024-25

102

NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025

(Rs. in Lakhs)

PBM POLYTEX LIMITED

v) Investment Details :

v)	Investment Details :
vi)	Particulars	As at 31/03/2025	As at 31/03/2024
	Insurance Plan	100%	100%
	Actuarial Assumptions
	Particulars	As at 31/03/2025	As at 31/03/2024
	MortalityTable	IALM(2012-14)	IALM(2012-14)
	Discount Rate	6.60%	7.20%
	Expected rate of return onplan assets	6.60%	7.20%
	Rate of escalation in salary	5.00%	6.00%

vii) Sensitivity Analysis

Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate, expected salary increase and employee turnover. The sensitivity analysis below, have been determined based on reasonably possible changes of the assumptions occurring at the end of the reporting period, while holding all other assumptions constant. The result of sensitivity analysis is given below :

analysis is given below :
Particulars	As at 31/03/2025	As at 31/03/2024
Sensitivity Level - Discount Rate
0.5% Increase	1,312.94	1,299.56
0.5% Decrease	1,374.32	1,365.12
Sensitivity Level - Salary Escalation
0.5% Increase	1,372.19	1,362.95
0.5% Decrease	1,314.71	1,301.34
Sensitivity Level - Withdrawal Rate
W.R. X 110%	1,349.68	1,333.71
W.R. X 90%	1,344.18	1,329.20

viii) Expected contribution to the defined benefit plan for the next reporting period - Rs. 52.14 Lakhs

ix) Maturity Profile of Defined Benefit Obligation

Maturity Profile of Defined Benefit Obligation
Particulars	As at 31/03/2025	As at 31/03/2024
Within the next 12 months(next annual reporting period)	373.46	407.38
Between 2 to 5years	393.06	442.48
Beyond 5years	580.32	590.76
Weighted Average duration of Defined Plan Obligation
Particulars	As at 31/03/2025	As at 31/03/2024
Gratuity	6.64 Years	5.775 Years

x) Weighted Average duration of Defined Plan Obligation

ANNUAL REPORT 2024-25

103

PBM POLYTEX LIMITED

NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025

(Rs. in Lakhs)

43 Financial Instruments - Fair Values & Risk Management

43.1 Accounting Classifications & Fair Value Measurements

The fair values of the financial assets and liabilities are measured at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

All financial instruments are initially recognized and subsequently re-measured at fair value as described below :

1. The fair value of investment in quoted equity shares and mutual funds is measured at quoted price or NAV.

2. Fair values of cash and short term deposits, trade and other short term receivables, trade payables, other current liabilities, short term loans from

banks and other financial institutions approximate their carrying amounts largely due to short-term maturities of these instruments.

1. Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counterparty. Based on the evaluation, allowances are taken to account for the expected losses of these receivables.

2. The fair value of forward foreign exchange contracts and currency swaps is determined using forward exchange rates and yield curves at the balance sheet date.

The company uses the following hierarchy for determining and disclosing the fair values of financial instruments by valuation technique:

Level 1 : Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 : Inputs other than the quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3: Input that is significant to the fair value measurement is unobservable.

I. Figures as at March 31, 2025

I. Figures as at March 31, 2025
Particulars	Level 1 Level 2 Level 3 Fair value Carrying Amount
Other Non Current Financial Assets Trade Receivables Cash and Cash Equivalents Other Current Financial Assets Lease Liabilities Trade Payables Investments (Non-Current) Financial liabilities at fair value through profit or loss: TOTAL TOTAL Financial liabilities at amortised cost: Borrowings (Current) Other Financial Liabilities TOTAL Bank Balances Other than Cash and Cash Equivalents TOTAL Financial assets at fair value through profit or loss: Investments (Current) Investments (Non-Current) Financial assets at amortised cost:	186.17 - - 86.32 - - 1423.60 - - 277.49 - - 28.12 - - 394.44 - -
	2,396.14 - - -
	- - - 280.34 280.34 -
	280.34 280.34 - -
	17.62 - - 16.80 - - 364.12 - - 171.15 - -
	569.70 - - -
	- - -
	- - - -

ANNUAL REPORT 2024-25

104

PBM POLYTEX LIMITED

NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025

(Rs. in Lakhs)

	(Rs. in Lakhs)
II. Figures as at March 31, 2024
Particulars	Level 1 Level 2 Level 3 Carrying Amount Fair value
Other Non Current Financial Assets Trade Receivables Cash and Cash Equivalents Other Current Financial Assets Lease Liabilities Trade Payables Financial liabilities at fair value through profit or loss: Other Financial Liabilities TOTAL TOTAL Borrowings (Current) TOTAL Financial liabilities at amortised cost: TOTAL Investments (Non-Current) Bank Balances Other than Cash and Cash Equivalents Financial assets at fair value through profit or loss: Investments (Current) Financial assets at amortised cost: Investments (Non-Current)	172.38 - - 83.11 - - 962.93 - - 302.38 - - 34.56 - - 370.67 - -
	1,926.03 - - -
	670.18 670.18 - 312.48 312.48 -
	982.66 982.66 - -
	22.56 - - 107.85 - - 222.46 - - 214.22 - -
	567.07 - - -
	- - -
	- - - -

No financial instruments have been routed through Other Comprehensive Income and hence separate reconciliation disclosure relating to the same is not applicable.

ANNUAL REPORT 2024-25

105

PBM POLYTEX LIMITED NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025

(Rs. in Lakhs)

44 Financial Risk Management

The company's Board of Directors has overall responsibility for the establishment and oversight of the company's risk management framework. The company's risk management policies are established to identify and analyse the risks faced by the company, to set appropriate risk limits and controls and to monitor risks. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the company's activities.

44.1 Credit Risk Management

Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The carrying amount of following financial assets represents the maximum credit exposure.

Trade Receivables

The Company periodically assesses the financial reliability of customers, taking into account the financial condition, current economic trends and ageing of accounts receivable. Individual risk limits are set accordingly. The Company performs impairment analysis at each reporting date using expected credit loss model. The Company does not hold collateral as security.

Details of single customer accounted for more than 10% of the accounts receivables as at 31st March 2025 and 31st March 2024:

2024:
Name of Customer	As at 31/03/2025	As at 31/03/2024
HUNARAM PROCESSING PVT LTD(KOLKATA)	159.27	166.57
KOTHARI HOSIERY FACTORY PVT.LTD.	168.14	35.00

2024-25 2023-24 2,218.81 3,168.81 BYC Co. Ltd Name of Customer Details of single customer accounted for more than 10% of revenue for the year ended at 31st March 2025 and 31st March 2024 :	2024-25 2023-24 2,218.81 3,168.81 BYC Co. Ltd Name of Customer Details of single customer accounted for more than 10% of revenue for the year ended at 31st March 2025 and 31st March 2024 :	2024-25 2023-24 2,218.81 3,168.81 BYC Co. Ltd Name of Customer Details of single customer accounted for more than 10% of revenue for the year ended at 31st March 2025 and 31st March 2024 :
Name of Customer	2024-25	2023-24
BYC Co. Ltd	2,218.81	3,168.81

The requirement of impairment of trade receivable is analysed as each reporting date. Based on historic default rates and overall credit worthiness of customers, management has made provision for doubtdul debts in respect of outstanding trade receivables as on 31st March, 2025 as below:

Movment in provision of doubtful trade receivable

Movment inprovision of doubtful trade receivable
Particulars	As at 31/03/2025	As at 31/03/2024
OpeningProvision	-	-
Add : Additionalprovision made duringtheyear	11.09	-
Closing Balance	11.09	-

Other Financial Assets

The company has limited credit risk arising from cash and cash equivalents as the balances are maintained with banks with high credit rating. Hence, these are low risk items.

The company evaluates the recoverability of Other financial assets at each reporting date and the same are written off when there is no reasonable expectation of recovery. Where recoveries are made, these are recognised in the Statement of Profit and Loss.

44.2 Liquidity Risk

Liquidity Risk is defined as the risk that the company will not be able to settle or meet its obligations on time or at reasonable price. The company's treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management. Management monitors the company's net liquidity position through rolling forecast on the basis of expected cash flows.

ANNUAL REPORT 2024-25

106

PBM POLYTEX LIMITED

NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025

(Rs. in Lakhs)

Maturity profile of financial liabilities

The table below provides details regarding the remaining contractual maturities of financial liabilities at the reporting date based on contractual undiscounted payments.

Particulars	Borrowings including interest obligations	Trade Payables	Other Financial Liabilities	Total
As at 31st March, 2025
Less than 1year	16.80	364.12	176.10	557.02
1 to 5years	-	-	12.67	12.67
Total	16.80	364.12	188.78	569.70
As at 31st March, 2024
Less than 1year	107.85	222.46	217.95	548.26
1 to 5years	-	-	18.82	18.82
Total	107.85	222.46	236.77	567.08

44.3 Market risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including investments and deposits, foreign currency receivables, payables and loan borrowings.

The Company manages market risk through a treasury department, which evaluates and exercises independent control over the entire process of market risk management. The treasury department recommends risk management objectives and policies, which are approved by Senior Management and the Audit Committee. The activities of this department include management of cash resources, implementing hedging strategies for foreign currency exposures, borrowing strategies, and ensuring compliance with market risk limits and policies.

44.4 Interest rate risk

Interest rate risk is the risk that fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. In order to optimize the company's position with regards to the interest income and interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in it total portfolio.

With all other variables held constant, the following table demonstrates the impact of the borrowing cost on floating rate portion of loans and borrowings and excluding loans on which interest rate swaps are taken.

Nature of Borrowing	Change in basis points	Impact on PAT	Impact on PAT
		2024-25	2023-24
Working Capital Facilities from Bank	(0.50)	0.06	0.40
	0.50	(0.06)	(0.40)

ANNUAL REPORT 2024-25

107

PBM POLYTEX LIMITED NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025

(Rs. in Lakhs)

44.5 Foreign currency risk

The company operates internationally and is exposed to currency risk on account of its receivables in foreign currency. The functional currency of the company is Indian Rupee. The company uses forward exchange contracts to hedge its currency risk, most with a maturity of less than one year from the reporting date.

The company does not use derivative financial instruments for trading or speculative purposes.

I. Foreign Currency Exposure

I. Foreign Currency Exposure
Particulars	As at 31/03/2025		As at 31/03/2024
	USD	Euro	USD	Euro
Financial Assets
Trade & Other Receivables	1.28	-	2.41	-
Less : Forward Contract for selling foreign currency	(1.28)	-	(2.41)	-
Total	-	-	-	-
Financial Liabilities	-	-	-	-
Net Exposure	-	-	-	-

44.6 Price Risk

• --> Investment Price Risk

The company's exposure to price risk arises from investments in equity and mutual fund held by the company and classified in the balance sheet at fair value through profit or loss. To manage its price risk arising from investments, the company diversifies its portfolio.

Sensitivity Analysis

The table below summarises the impact of increase/decrease of the index on the company’s equity and profit for the period. The analysis is based on the assumption that the price of the instrument has increased by 3% or decreased by 3% with all other variables held constant.

Particulars	Movement in Rate	Impact on PAT	Impact on PAT
		2024-25	2023-24
EquityShares(Quoted)	3%	6.29	7.01
EquityShares(Quoted)	-3%	(6.29)	(7.01)

• --> Commodity Price Risk

• Principal Raw Material for company’s products is cotton. Company sources its raw material requirements from domestic markets. Company effectively manages availability of material as well as price volatility through well planned procurement and inventory strategy and also through appropriate contracts and commitments.

Sensitivity Analysis

The table below summarises the impact of increase/decrease in prices of cotton by Rs. 1 per kg on profit for the period.

Particulars	Impact on PAT	Impact on PAT
	2024-25	2023-24
Rs. 1 decrease inprice of cotton	58.71	60.76
Rs. 1 increase inprice of cotton	(58.71)	(60.76)

ANNUAL REPORT 2024-25

108

PBM POLYTEX LIMITED NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025

(Rs. in Lakhs)

45 Capital management

For the purposes of the Company’s capital management, capital includes issued capital and all other equity reserves. The primary objective of the Company’s Capital Management is to maximise shareholder value. The company manages its capital structure and makes adjustments in the light of changes in economic environment and the requirement of the financial covenants.

The company monitors capital using gearing ratio, which is net debt divided by total equity plus debt.

Particulars	As at 31/03/2025	As at 31/03/2024
Borrowings	16.80	107.85
Less : Cash & Cash Equivalents	277.49	302.38
Net Debt(A)	-	-
Total Equity	11,660.91	12,046.17
Equityand Net Debt(B)	11,660.91	12,046.17
GearingRatio(A/B)	-	-

• 46 In terms of Ind AS 36 – Impairment of Assets issued by ICAI, the management has reviewed its fixed assets and arrived at the conclusion that impairment loss which is difference between the carrying amount and recoverable value of assets, was not material and hence no provision is required to be made.

ANNUAL REPORT 2024-25

109

PBM POLYTEX LIMITED

NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025

47 Key Ratios

Sr. No	Ratio	Ratio as on 31st March 2025	Ratio as on 31st March 2024	% Deviation	Reason for variance
1	Current Ratio
	Current Assets	5.87	3.95	48.66%	Due to decrease in curent liability as compared to previous year
	Current Liabilities
2	Debt-to-equity Ratio
	Total Borrowing plus Lease Liability	0.003	0.01	-72.73%	Due to decrease in working capital facilities as compared to previous year
	Shareholder's Equity
3	Debt Service Coverage Ratio
	Earnings Available for Debt Servicing	(3.18)	(8.11)	60.78%	Due to decrease in loss as comapred to previous year
	Interest and Lease Payment Installments
4	Return on Equity Ratio
	Net Profit After Tax	-3.95%	-5.10%	22.63%	N.A.
	Average Shareholder's Equity
5	Inventory Turnover Ratio
	Sale of Products	3.34	4.07	-17.79%	N.A.
	Average Inventory
6	Receivables Turnover Ratio
	Net Sales	14.58	13.77	5.87%	N.A.
	Average Accounts Receivable
7	Payables Turnover Ratio
	Net Credit Purchasesplus Other Expenses	50.43	67.44	-25.22%	Net credit purchases and other expenses have been reduced as compared topreviousyear
	Average Trade Payables
8	Net Capital Turnover Ratio
	Net Sales	2.86	2.94	-2.77%	N.A.
	WorkingCapital
9	Net Profit Ratio
	Proift After Tax	-2.69%	-3.33%	19.35%	N.A.
	Net Sales
10	Return on Capital employed Ratio
	EBIT	-4.89%	-6.26%	21.91%	N.A.
	Capital Employed
11	Return on investment Ratio
(a)	Mutual Fund Investments
	Gain on sale / fair valuation of Mutual Fund	11.13%	6.26%	77.80%	Due to fluctuations in market yeild.
	Average investment in Mutual Funds
(b)	Fixed Income Investments(FD, Bonds, Debentures & Preference Shares)
	Interest Income + Profit on redemption	7.75%	5.68%	36.46%	Due to increase in interest rate.
	Average investment in Fixed Income investments
(c)	Quoted Equity Instruments Investments
	Fair valuation of quoted investment + Dividend Income	-10.29%	7.20%	-242.91%	Due to fluctuations in market yeild.
	Openinginvestment in Quoted EquityInstruments

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PBM POLYTEX LIMITED

NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025

(Rs. in Lakhs)

48. Ageing of Trade Receivable

48.1 Ageing of Trade Receivables outstanding as at 31/03/2025

48.1 Ageing of Trade Receivables outstanding as at 31/03/2025
Particulars	Outstanding for following periods from due date ofpayment						Total
	Unbilled Revenue/ Not due	Less than 6 months	6 months-1 Years	1-2 Years	2-3 Years	More than 3 Years
Undisputed Trade Receivable-Consideredgood	89.35	1,288.99	0.91	-	-	-	1,379.25
Undisputed trade receivable-Significant increase in credit risk	-	-	-	-	-	-	-
Undisputed Trade Receivable-Credit Impaired	-	-	-	-	-	-	-
Disputed Trade Receivable-Consideredgood	-	-	-	-	55.44	-	55.44
Disputed trade receivable-Significant increase in credit risk	-	-	-	-	-	-	-
Disputed Trade Receivable-Credit Impaired	-	-	-	-	-	-	-
Total	89.35	1,288.99	0.91	-	55.44	-	1,434.69
Less : Provision for doubtful debts	-						11.09
Net Trade Receivable							1,423.60

48.1 Ageing of Trade Receivables outstanding as at 31/03/2024

48.1 Ageing of Trade Receivables outstanding as at 31/03/2024
Particulars	Outstanding for following periods from due date ofpayment						Total
	Unbilled Revenue/ Not due	Less than 6 months	6 months-1 Years	1-2 Years	2-3 Years	More than 3 Years
Undisputed Trade Receivable-Consideredgood	-	903.52	2.45	55.92	1.04	-	962.93
Undisputed trade receivable-Significant increase in credit risk	-	-	-	-	-	-	-
Undisputed Trade Receivable-Credit Impaired	-	-	-	-	-	-	-
Disputed Trade Receivable-Consideredgood	-	-	-	-	-	-	-
Disputed trade receivable-Significant increase in credit risk	-	-	-	-	-	-	-
Disputed Trade Receivable-Credit Impaired	-	-	-	-	-	-	-
Total	-	903.52	2.45	55.92	1.04	-	962.93
Less : Provision for doubtful debts							-
Net Trade Receivable							962.93

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PBM POLYTEX LIMITED

NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025

49.1 Details as required under MSMED Act aregiven below :	(Rs. in Lakhs)	(Rs. in Lakhs)
Particulars	As at 31/03/2025	As at 31/03/2024
	TOTAL	TOTAL
Principal amount due to any supplier registered under MSMED Act and remainingunpaid as at the end of accounting year	13.92	9.14
Interest due to any supplier registered under MSMED Act and remainingunpaid as at the end of accounting year	-	-
Amount of interest paid by the Company in terms of section 16 of the MSMED Act, along with the amount of the payment made to the supplier beyond the appointed dayduringthe accounting year	-	-
Amount of interest due and payable for the reporting period of delay in making payment [which have been paid but beyond the appointed day during the year] but without adding the interest specified under the MSMED Act	-	-
Amount of interest accrued and remaining unpaid at the end of the accounting year.	-	-
Amount of further interest remaining due and payable even in succeeding years, untill such date when the interest dues as above are actually paid to the small enterprise, for the purpose of disallowance as a deductivble expenditure under Section 23 of MSMED Act.	-	-

The above information regarding micro, small and medium enterprises has been determined to the extent such parties have been identified on the basis of information available with the company.

49.2 Ageing of Trade Payables

Ageing of Trade Payables outstanding as on 31/03/2025 (Rs. in Lakhs)

Particulars	Outstanding for following periods from due date ofpayment	Outstanding for following periods from due date ofpayment	Outstanding for following periods from due date ofpayment	Outstanding for following periods from due date ofpayment	Outstanding for following periods from due date ofpayment	Total
	Not Due	Less Than 1 Year	1-2 Year	2-3 Years	More than 3 Years
MSME	13.91	0.01	-	-	-	13.92
Others	291.78	57.63	0.67	0.12	-	350.20
Disputed dues – MSME	-	-	-	-	-	-
Disputed dues - Others	-	-	-	-	-	-
Total	305.69	57.64	0.67	0.12	-	364.12

Ageing of Trade Payables outstanding as on 31/03/2024	(Rs. in Lakhs)	(Rs. in Lakhs)	(Rs. in Lakhs)	(Rs. in Lakhs)	(Rs. in Lakhs)	(Rs. in Lakhs)
Particulars	Outstanding for following periods from due date ofpayment					Total
	Not Due	Less Than 1 Year	1-2 Year	2-3 Years	More than 3 Years
MSME	9.14	-	-	-	-	9.14
Others	182.75	30.39	0.17	-	-	213.32
Disputed dues – MSME	-	-	-	-	-	-
Disputed dues - Others	-	-	-	-	-	-
Total	191.89	30.39	0.17	-	-	222.46

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PBM POLYTEX LIMITED

NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025

(Rs. in Lakhs)

50. Loans granted to Promoters, Directors, KMPs and Related Parties

Details of Loans or Advances in the nature of loans granted to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013,) either severally or jointly with any other person, that are(a) repayable on demand or (b) without specifying any terms or period of repayment :

Type of Borrower	As at 31/03/2025	As at 31/03/2025	As at 31/03/2024	As at 31/03/2024
	Amount of loan or advance in the nature of loan outstanding	Percentage to the total Loans and Advances in the nature of loans	Amount of loan or advance in the nature of loan outstanding	Percentage to the total Loans and Advances in the nature of loans
Promoters		‐ 0.00%	‐	0.00%
Directors		‐ 0.00%	‐	0.00%
KMPs		‐ 0.00%	‐	0.00%
Related Parties	365.89	92.76%	346.65	93.60%

50.1 Disclosures pursuant to Section 186(4) of the Companies Act, 2013 :

Name of the Company	Purpose of Loan	Amount outstanding	Amount outstanding	Maximum Outstanding durng the year	Maximum Outstanding durng the year
		As at 31/03/2025	As at 31/03/2024	2024‐25	2023‐24
Eurotex Industries and Exports Limited	Working Capital	365.89	346.65	365.89	346.65

51. Borrowing based on security of current assets

Quarter	Name of Bank	Particulars of securities provided	Amount as per books of accounts	Amount as reported in quarterly return/statement	Amount of difference	Reason for material discrepancies
June,2024	State Bank of India/ IDBI Bank	Trade Receivable	1,028.18	1,192.00	(163.82)	Refer Note Below
June,2024		Inventory‐ Raw Material	2,098.74	2,099.00	(0.26)
June,2024		Inventory‐ Finished Goods	1,673.63	1,611.00	62.63
June,2024		Inventory‐ Work in Progress	301.47	301.00	0.47
June,2024		Inventory‐ Stores and Spares	372.98	129.00	243.98
September,2024		Trade Receivable	886.69	815.00	71.69
September,2024		Inventory‐ Raw Material	739.67	739.00	0.67
September,2024		Inventory‐ Finished Goods	2,055.29	1,930.00	125.29
September,2024		Inventory‐ Work in Progress	311.25	311.00	0.25
September,2024		Inventory‐ Stores and Spares	154.41	140.00	14.41
December,2024		Trade Receivable	1,172.01	1,334.00	(161.99)
December,2024		Inventory‐ Raw Material	1,861.63	1,861.63	(0.00)
December,2024		Inventory‐ Finished Goods	1,832.19	1,532.31	299.88
December,2024		Inventory‐ Work in Progress	305.44	304.63	0.81
December,2024		Inventory‐ Stores and Spares	154.86	143.30	11.56
March,2025		Trade Receivable	1,434.69	1,060.00	374.69
March,2025		Inventory‐ Raw Material	2,972.03	2,973.00	(0.97)
March,2025		Inventory‐ Finished Goods	1,221.33	884.00	337.33
March,2025		Inventory‐ Work in Progress	326.01	328.00	(1.99)
March,2025		Inventory‐ Stores and Spares	187.99	168.00	19.99

Note‐ 'Reason for material discrepancies'

‐The differences in inventories and trade receivables are majorly on account of goods in transit where the goods have been physically dispatched from the Company location however, the same has not been considered as revenue from the purpose of revenue recognition principles and hence reversed from books of accounts for respective quarter ends.

‐ The management, basis their understanding with banks, submits stock statement of physical stock as available at respective locations at the period end. Accordingly adjustment for goods in transit (inward and outward) is not considered for the purpose of filing returns with banks.

‐ There are other differences on account of regrouping and reclassification of trade receivable balances .

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PBM POLYTEX LIMITED

NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025

(Rs. in Lakhs)

52. Other Statutory Information

(a) The Company does not held any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder. Hence any proceeding has not been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

(b) The Company does not have any transactions with companies struck off.

(c) As on March 31, 2025 there is no unutilised amounts in respect of any issue of securities and long term borrowings from banks and financial institutions. The borrowed funds have been utilised for the specific purpose for which the funds were raised.

(d) The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 ( Such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

(e) The Company has not traded or invested in crypto currency or virtual currency during the financial year.

(f) The company does not have any charges or satisfaction, which is yet to be registered with ROC beyond the statutory period.

(g) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

‐ directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

‐ provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(h) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

‐ directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

‐ provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

53 .The company has used accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has been operated throughout the year for all relevant transactions recorded in the software. Further, there are no instances of audit trail being tampered with. Additionally, the audit trail of prior year(s) has been preserved by the Company as per the statutory requirements for record retention.

54. Previous year's figures have been re‐grouped/re‐arranged/re‐casted, wherever necessary, so as to make them comparable with current year's figures. The management believes that such reclassification does not have any material impact on the information presented in the financial statements.

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PBM POLYTEX LIMITED

NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025

(Rs. in Lakhs)

55. Events occuring after reporting period

The Company evaluated subsequent events through May 28,2025 , the date financial statements were available for issuance and determined that there were no additional material subsequent events requiring disclosure.

As per our attached Report of even Date For, Mahendra N Shah & Co. Chartered Accountants FRN : 105775W

CA Chirag M Shah Partner Membership No: 45706

Place: Ahmedabad Date: 28th May, 2025

For and behalf of the Board of Directors of PBM Polytex Limited Shri Gopal Patodia, Managing Director (DIN: 00014247) Shri Mohan Kumar Patodia, Managing Director cum CFO (DIN: 00035381) Shri Ashok Pandit, Independent Director (DIN: 08132980) Shri Amit Patodia, CEO Swati Billore Shri Sunil Somani, Finance Controller Company Secreary Place: Vadodara (M. No. F8321) Date: 28th May, 2025

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Consolidated Financial Statements

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INDEPENDENT AUDITOR’S REPORT

To the Members of PBM Polytex Limited

Report on the Audit of the Consolidated Financial Statements

Opinion

We have audited the accompanying consolidated financial statements of PBM Polytex Limited (the ‘Company’) and its associate which comprise the Consolidated Balance Sheet as at March 31, 2025, the Consolidated Statement of Profit and Loss (including Other Comprehensive Income), the Consolidated Statement of Cash Flow and the Consolidated Statement of Changes in Equity for the year then ended, and notes to the consolidated financial statements, including a summary of material accounting policies and other explanatory information (herein after referred as “Consolidated Financial Statements”).

In our opinion and to the best of our information and according to the explanations given to us, the consolidated financial statements give the information required by the Companies Act, 2013 (the “Act”) in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended (“Ind AS”) and other accounting principles generally accepted in India, of the consolidated state of affairs of the Company and its associate as at March 31, 2025, its consolidated loss, its consolidated total comprehensive loss, its consolidated cash flows and the consolidated changes in equity for the year ended on that date.

Basis for Opinion

We conducted our audit of the consolidated financial statements in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Company and its associate in accordance with the Code of Ethics issued by Institute of Chartered Accountants of India (ICAI) together with the ethical requirements that are relevant to our audit of the consolidated financial statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI’s Code of Ethics. We believe that the audit evidence obtained by us and other auditor in terms of their reports referred to in “Other Matter” paragraph below is sufficient and appropriate to provide a basis for our audit opinion on the consolidated financial statements.

Emphasis of Matter

Attention is drawn to Note No. 57 of accompanying consolidated financial statements, which explains that statements of Eurotex Industries and Exports Limited (associate company) have been

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prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business though the said Company has incurred cash loss during the current year, losses during last many years, having eroded its entire net worth, that the operations of the manufacturing plants at Kolhapur having been discontinued since March 25, 2019 and announcement of their closure on March 30, 2022. The management of the said Company has settled dues of lender banks (by borrowing from promoter group companies) and the company is planning to undertake the further development of available land area at Kolhapur in near future. In view of such positivities, the financial statements of the said Company have been prepared on a going concern basis.

Our opinion on the consolidated financial statements is not modified in respect above matter.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

We have determined that there is no key audit matter to communicate in our report.

Information other than Consolidated Financial Statements & Auditors Report thereon.

The Company’s Board of Directors is responsible for the Other Information. The Other Information comprises the information included in the Board’s Report including Annexures to Board’s Report and Management Discussion & Analysis, but does not include the consolidated financial statements and our auditor’s report thereon. The other information is expected to be made available to us after the date of this auditor’s report.

Our opinion on the consolidated financial statements does not cover the Other Information and we do not and will not express any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained during the course of our audit, or otherwise appears to be materially misstated.

When we read the other information, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance as required under SA 720 ‘The Auditor’s Responsibilities Relating to Other Information”.

Responsibilities of Management and those charged with Governance for the Consolidated Financial Statements

The Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these consolidated financial statements that give a true and fair view of the consolidated financial position, consolidated financial performance including other comprehensive income, consolidated cash flows and consolidated changes in equity of the Company

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including in its associate in accordance with the with the accounting principles generally accepted in India, including the Indian Accounting Standards specified under Section 133 of the Act .

The respective Board of Directors of the Company and its associate are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act, for safeguarding the assets of the Company and its associate and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgement and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring accuracy and completeness of the accounting records, relevant to the preparation and presentation of the consolidated financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error, which have been used for the purpose of preparation of the consolidated financial statements by the Directors of the Company, as aforesaid.

In preparing the consolidated financial statements, the respective Board of Directors of the company and its associate are responsible for assessing the ability of their respective companies to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The respective Board of Directors of the Company and its associate are responsible for overseeing the financial reporting process of their respective companies.

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements: -

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal financial control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate

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internal financial controls with reference to financial statements in place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting polices used and the reasonableness of accounting estimates and related disclosures made by the management.

• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the Company and its associate to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company and its associate company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

• Obtain sufficient appropriate audit evidence regarding the financial information of such entities or business activities of the Company and its associate of which we are the independent auditors and whose financial information we have audited, to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the audit of financial information of such entities included in the consolidated financial statements of which we are the independent auditors. For the other entities included in the consolidated financial statements, which have been audited by other auditors, such other auditors remain responsible for the direction, supervision and performance of the audits carried out by them. We remain solely responsible for our audit opinion.

Materiality is the magnitude of misstatements in the consolidated financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the consolidated financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the consolidated financial statements.

We communicate with those charged with governance of the Company regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current

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period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Other Matter

The Consolidated financial statements also include the Company’s share of net loss of Rs. Nil for the year ended March 31, 2025, as considered in the consolidated financial statements in respect of an associate company, whose financial statements have not been audited by us. These financial statements have been audited by other auditor whose report has been furnished by the management and our opinion on the consolidated financial statements, in so far as it relates to the amounts and disclosures included in respect of the above associate and our report in terms of subsection (3) of Section 143 of the Act, in so far as it relates to the above associate, is based solely on the report of the other auditor.

Our opinion on the consolidated financial statements as above and our report on Other Legal and Regulatory Requirements below is not modified in respect above matters with respect of our reliance on the work done and the report of the other auditor.

Report on Other Legal and Regulatory Requirements

1. As required by Section 143(3) of the Act, we report that:

2. (a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief are necessary for the purpose of our audit;

3. (b) In our opinion, proper books of account as required by law relating to preparation of the aforesaid consolidated financial statements have been kept so far as it appears from our examination of those books and the reports of the other auditors except for the matters stated in the paragraph 1(i)(vi)(b) below on reporting under Rule 11(g).

4. (c) The Consolidated Balance Sheet, the Consolidated Statement of Profit and Loss including Other Comprehensive Income, the Consolidated Statement of Cash Flow and the Consolidated Statement of changes in Equity dealt with by this Report are in agreement with the books of account maintained for the purpose of preparation of the consolidated financial statements.

5. (d) In our opinion, the aforesaid consolidated financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act.

6. (e) On the basis of the written representations received from the directors of the Company as on 31[st ] March, 2025 taken on record by the Board of Directors of the Company and the report of the statutory auditor of its associate company, none of the directors of the company and its associate company is disqualified as on March 31, 2025 from being appointed as a director in terms of Section 164(2) of the Act.

7. (f) The modification relating to the maintenance of accounts and other matters connected therewith are as stated in the paragraph (b) above on reporting under Section 143(3)(b) and paragraph 1(i)(vi)(b) below on reporting under Rule 11(g).

8. (g) With respect to the adequacy of internal financial controls with respect to consolidated financial statements of the Company and its associate company, incorporated in India,

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and the operating effectiveness of such controls, refer to or separate report in “Annexure A” .

• (h) In our opinion and to the best of our information and according to the explanations given to us and based on the consideration of report of other statutory auditors of associate Company, incorporated in India, the managerial remuneration paid/provided by the Company and its associate Company to their directors during the year is in accordance with the provisions of Section 197 read with Schedule V to the Act.

• (i) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rule, 2014, in our opinion and to the best of our information and according to the explanations given to us and based on the auditor’s report of associate company:

• i. The consolidated financial statements disclose the impact of pending litigations on the consolidated financial position of the Company and its associate – Refer Note No. 37 to the Consolidated Financial Statements.

• ii. The Company and its associate did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.

• iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company and its associate.

• iv. (a) The respective management of the Company and its associate Company, incorporated in India, have represented to us and the other auditors of such associate company respectively that, to the best of their knowledge and belief, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company or its associate to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company or its associate (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

• (b)The respective management of the Company and its associate company, incorporated in India, have represented to us and the other auditors of such associate Company respectively that, to the best of their knowledge and belief, no funds have been received by the Company or its associate from any person(s) or entity(ies), including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company or its associate shall, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

• (c) Based on the audit procedures that has been considered reasonable and appropriate in the circumstances performed by us and those performed by the auditors of associate Company, incorporated in India, nothing has come to our notice that has caused us to believe that the representations under (a) & (b) above contain any material misstatement.

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• v. No dividend has been declared or paid during the year by the Company and its associate company.

• vi. (a) Based on our examination which included test checks, the Company has used accounting software for maintaining its books of account for the financial year ended March 31, 2025 which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software [refer Note No. 56(a) to the consolidated financial statements]. Further, during the course of our audit we did not come across any instance of audit trail feature being tampered with. Additionally, the audit trail has been preserved by the Company as per statutory requirements for record retention.

(b) Based on examination which included test checks performed by the auditors of the of the Associate Company, it uses an accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software except that audit trail feature is not enabled to trace information contained in certain statements or reports back to the original input source [refer Note No. 56(b)]. It is in compliance with the preservation of audit trail as per the statutory requirements for record retention.

1. With respect to matter specified in paragraph 3(xxi) and 4 of Companies (Auditor’s Report) Order, 2020 (the “Order”) issued by the Central Government of India in terms of sub‐section (11) of section 143 of the Companies Act, 2013, there are no qualification or adverse remarks by respective auditor in the Companies (Auditors Report) Order (CARO) reports of the companies included in consolidated financial statements except for the following:

No.	Name of the Company	CIN	Nature of Relationship	Clause Number of CARO report with qualification or adverse remarks
1	PBM Polytex Limited	L17110GJ1919PLC000495	Company	ii(b), iii(c), iii(d), iii(f) and xvii
2	Eurotex Industries and Exports Limited	L70200MH1987PLC042598	Associate Company	vii(b), ix(a), ix(d) and xvii

For, Mahendra N. Shah & Co. Chartered Accountants FRN 105775W

Place: Ahmedabad Date: May 28, 2025 UDIN: 25045706BMJAJB1398

Chirag M. Shah Partner Membership No. 045706

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123

(Referred to in paragraph 1(f) under “Report on Other Legal and Regulatory Requirements” section of our report to the members of PBM Polytex Limited of even date)

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”)

We have audited the internal financial controls with reference to consolidated financial statements of PBM Polytex Limited (“the Company”) and its associate company incorporated in India, as of March 31, 2025 in conjunction with our audit of the consolidated financial statements of the Company for the year ended on that date.

Management’s Responsibility for Internal Financial Controls

The respective Board of Directors of the company and its associate, which are incorporated in India, are responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial controls over Financial Reporting issued by the Institute of Chartered Accountants of India (“ICAI”). These responsibilities include the design implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to the respective company’s policies, the safeguarding of its assets, the prevention and detection of frauds, and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.

Auditors’ Responsibility

Our responsibility is to express an opinion on the Company’s internal financial controls with reference to consolidated financial statements based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the “Guidance Note”) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls with reference to consolidated financial statements was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls with reference to consolidated financial statements and their operating effectiveness. Our audit of internal financial controls with reference to consolidated financial statements included obtaining an understanding of internal financial controls with reference to consolidated financial statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The

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procedures selected depend on the auditor’s Judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained and the audit evidence obtained by the other auditors of the associate company in terms of their reports referred to in the Other Matters paragraph below, is sufficient and appropriate to provide a basis for our audit opinion on the internal financial controls with reference to consolidated financial statements of the Company and its associate, which are companies incorporated in India.

Meaning of Internal Financial Controls with reference to Consolidated Financial statements

A company’s internal financial control with reference to consolidated financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purpose in accordance with generally accepted accounting principles. A company’s internal financial control with reference to consolidated financial statements includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company. (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company, and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the standalone financial statements.

Inherent Limitations of Internal Financial Controls with reference to Consolidated Financial statements

Because of the inherent limitations of internal financial controls with reference to consolidated financial statements, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls with reference to consolidated financial statements to future periods are subject to the risk that the internal financial control with reference to consolidated financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies of procedures may deteriorate.

Opinion

In our opinion, the Company and its associate company, which are incorporated in India, have, in all material respects, an adequate internal financial control system with reference to consolidated financial statements and such internal financial controls with reference to consolidated financial statements were operating effectively as at March 31, 2025, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal controls as stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reports issued by the Institute of Chartered Accountants of India. Besides, it is advisable to continue internal audit of associate company for better financial controls.

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Other Matters

Our aforesaid report under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 on the adequacy and reporting effectiveness of the internal financial controls with reference to the consolidated financial statements in so far as it relates to an associate company, incorporated in India, is based on the corresponding report of the auditor of such associate company incorporated in India. Our opinion is not modified in respect of this matter.

For, Mahendra N. Shah & Co. Chartered Accountants FRN 105775W

Place: Ahmedabad Date: May 28, 2025 UDIN: 25045706BMJAJB1398

Chirag M. Shah Partner Membership No. 045706

ANNUAL REPORT 2024-25

126

PBM POLYTEX LIMITED

CONSOLIDATED BALANCE SHEET AS AT 31ST MARCH, 2025

				(Rs. In Lakhs)	(Rs. In Lakhs)
Particulars			Notes No.	As at 31st March, 2025	As at 31st March, 2024
I	ASSETS
1)	Non-current Assets
	(a)	Property,Plant and Equipment(includingROU Assets)	2	5,202.51	5,417.90
	(b)	Capital work-in-progress	3	69.02	69.14
	(c)	Intangible assets	4	3.67	5.80
	(d)	Financial Assets
		(i)Investments	5	186.17	172.38
		(ii)Other Financial Assets	6	86.32	83.11
	(e)	Other non-current assets	7	71.11	26.77
		Total Non-current Assets		5,618.80	5,775.10
2)	Current Assets
	(a)	Inventories	8	4,707.36	5,620.67
	(b)	Financial Assets
		(i)Current Investments	9	0.00	670.18
		(ii)Trade receivables	10	1,423.60	962.93
		(iii)Cash and cash equivalents	11	277.49	302.38
		(iv)Bank balances other than(iii)above	12	28.12	34.56
		(v)Loans	13	328.55	323.68
		(vi)Other Financial Assets	14	65.89	46.98
	(c)	Current tax assets(Net)	15	15.92	16.87
	(d)	Other current assets	16	492.93	628.32
		Total Current Assets		7,339.86	8,606.57
		TOTAL ASSETS		12,958.66	14,381.67
II	EQUITY AND LIABILITIES
1)	Equity
	(a)	EquityShare Capital	17	687.90	687.90
	(b)	Other Equity	18	10,763.22	11,124.44
		Total Equity		11,451.12	11,812.34
2)	Liabilities
	Non-current Liabilities
	(a)	Financial Liabilities
		(i)Lease Liabilities	36.1	11.67	17.62
		(ii)Other financial liabilities	19	1.00	1.20
	(b)	Provisions	20	73.47	74.08
	(c)	Deferred tax liabilities(Net)	21	171.23	297.22
		Total Non-current Liabilities		257.37	390.12
	Current Liabilities
	(a)	Financial Liabilities
		(i)Borrowings	22	16.80	107.85
		(ii)Lease Liabilities	36.1	5.95	4.93
		(iii)Tradepayables
		- Total outstanding dues of micro & small enterprises	23	13.92	9.14
		- Total outstanding dues of creditors other than micro enterprises and small enterprises		350.20	213.32
		(iv)Other financial liabilities	24	170.15	213.02
	(b)	Other current liabilities	25	578.62	1,516.06
	(c)	Provisions	26	114.53	114.89
		Total Current Liabilities		1,250.17	2,179.21
		TOTAL EQUITY AND LIABILITIES		12,958.66	14,381.67
		Material Accounting Policies and Notes to the Financial Statements	1 - 59

As per our report of even date attached herewith

For and behalf of the Board of Directors of

PBM Polytex Limited

For Mahendra N. Shah & Co.

Chartered Accountants

FRN: 105775W

Shri Gopal Patodia, Managing Director (DIN: 00014247)

Shri Mohan Kumar Patodia, Managing Director cum CFO (DIN: 00035381)

Shri Ashok Pandit, Independent Director (DIN: 08132980)

Chirag M. Shah

Shri Amit Patodia, CEO

Partner

M. No.: 045706

Shri Sunil Somani, Finance Controller

Place : Ahmedabad Date: 28th May, 2025

Swati Billore Place: Vadodara Company Secreary Date: 28th May, 2025 (M. No. F8321)

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PBM POLYTEX LIMITED

CONSOLIDATED STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31ST MARCH, 2025

PBM POLYTEX LIMITED CONSOLIDATED STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31ST MARCH, 2025	PBM POLYTEX LIMITED CONSOLIDATED STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31ST MARCH, 2025	PBM POLYTEX LIMITED CONSOLIDATED STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31ST MARCH, 2025	PBM POLYTEX LIMITED CONSOLIDATED STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31ST MARCH, 2025	PBM POLYTEX LIMITED CONSOLIDATED STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31ST MARCH, 2025
(Rs. In Lakhs)
Particulars		Notes No.	2024-25	2023-24
I	INCOME
	Revenue from operations	27	17,621.48	19,157.11
	Other income	28	198.25	422.33
	Total Income		17,819.73	19,579.44
**II **	EXPENSES
	Cost of materials consumed	29	12,179.93	13,512.75
	Changes in inventories of finished goods, Stock-in -Trade and work-in-progress	30	(98.86)	391.03
	Employee benefits expense	31	2,263.04	2,222.14
	Finance costs	32	47.46	54.65
	Depreciation and amortization expense	33	367.64	365.86
	Other expenses	34	3,658.41	3,892.90
	Total Expenses		18,417.63	20,439.33
**III **	Profit/(Loss) before exceptional items and tax		(597.90)	(859.89)
**IV **	Exceptional Items		0.00	0.00
**V **	Profit/(Loss) before tax		(597.90)	(859.89)
**VI **	Tax Expenses
	Current Tax
	Deferred Tax Provision/ (Reversal)		(153.76)	(202.01)
	Excess Provision of Income Tax of Earlier Years		(0.35)	(12.55)
	Total Tax Expense		(154.11)	(214.56)
**VII **	Profit/(Loss) for theyear		(443.79)	(645.33)
**VIII **	Other Comprehensive Income
	Items that will not be reclassified toprofit or loss
	Remeasurement of defined benefitplans		110.33	47.96
	Income tax relatingto above items		(27.77)	(12.07)
	Total Other comprehensive Income/(Loss) for theyear		82.56	35.89
**IX **	Total Comprehensive Income/(Loss) for theyear		(361.23)	(609.44)
**X **	Net Profit attriubutable to:
	Owners of the company		(443.79)	(645.33)
	Non controllingInterest		-	-
**XI **	Other Comprehensive Income attributable to:
	Owners of the company		82.56	35.89
	Non controllingInterest		-	-
**XII **	Total Comprehensive Income attributable to:
	Owners of the company		(361.23)	(609.44)
	Non controllingInterest		-	-
**XIII **	Earning per Equity Share of face value of Rs. 10 each
	Basic(Rs.)	35	(6.45)	(9.38)
	Diluted(Rs.)	35	(6.45)	(9.38)
	Material Accounting Policies and Notes to the Financial Statements	1 - 59

As per our report of even date attached herewith

For and behalf of the Board of Directors of PBM Polytex Limited

For Mahendra N. Shah & Co.

Chartered Accountants FRN: 105775W

Shri Gopal Patodia, Managing Director (DIN: 00014247)

Shri Mohan Kumar Patodia, Managing Director cum CFO (DIN: 00035381)

Shri Ashok Pandit, Independent Director (DIN: 08132980)

Shri Amit Patodia, CEO

Chirag M. Shah Partner M. No.: 045706

Place : Ahmedabad Date: 28th May, 2025

Shri Sunil Somani, Finance Controller

Swati Billore Place: Vadodara Company Secreary Date: 28th May, 2025 (M. No. F8321)

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128

PBM POLYTEX LIMITED

AUDITED CONSOLIDATED STATEMENT OF CASH FLOW FOR THE YEAR ENDED MARCH 31,2025

PBM POLYTEX LIMITED AUDITED CONSOLIDATED STATEMENT OF CASH FLOW FOR THE YEAR ENDED MARCH 31,2025	PBM POLYTEX LIMITED AUDITED CONSOLIDATED STATEMENT OF CASH FLOW FOR THE YEAR ENDED MARCH 31,2025	PBM POLYTEX LIMITED AUDITED CONSOLIDATED STATEMENT OF CASH FLOW FOR THE YEAR ENDED MARCH 31,2025	PBM POLYTEX LIMITED AUDITED CONSOLIDATED STATEMENT OF CASH FLOW FOR THE YEAR ENDED MARCH 31,2025
(Rs. In Lakhs)
Particulars		As at 31st March, 2025	As at 31st March, 2024
**A **	CASH FLOW FROM OPERATING ACTIVITIES
	Profit/(Loss) Before taxation	(597.90)	(859.89)
	Adjustments to reconcileprofit before tax to net cash flows:
	Depreciation/Amortization	367.64	365.86
	Interest Income	(43.14)	(44.10)
	Interest and Other BorrowingCost	47.46	54.65
	(Profit) /Loss on Sale of Tangible assets	(5.08)	(111.56)
	(Profit) /Loss on Sale of Investment	(145.45)	(132.97)
	Provision for doubtful debt	11.09	-
	Excessprovision/sundrybalances written back	(1.62)	(128.45)
	Effect of fair valuation of investments	1.18	(1.18)
	Other Comprehensive Income forgratuity	110.33	47.96
	Operating Profit/(loss) before Working Capital Changes	(255.48)	(809.68)
	WorkingCapital Changes:		-
	Changes in Inventories	913.31	(1,961.43)
	Changes in trade and other receivables	(389.27)	801.29
	Changes in trade and otherpayables	(830.84)	819.26
	Net Changes in Working Capital	(306.80)	(340.88)
	Cash Generated from Operations	(562.28)	(1,150.56)
	Direct Taxespaid(Net of Income Tax refund)	1.31	32.91
	Net Cash flow from/(used in) Operating Activities	(560.97)	(1,117.65)
**B **	CASH FLOW FROM INVESTING ACTIVITIES
	Purchase ofproperty, plant & equipment/intangible assets	(158.99)	(498.81)
	Sale ofproperty, plant & equipment	14.56	133.20
	Proceeds from Sale/Redemption of Investment(Net)	814.44	(536.03)
	Movement in Other Bank Balances	6.44	20.15
	Interest Income	10.45	12.26
	Net Cash flow from/(used in) Investing Activities	686.90	(869.23)
**B **	CASH FLOW FROM FINANCING ACTIVITIES
	Dividend Paid	(7.37)	(8.36)
	Proceeds from/(Repayments)of Short Term Borrowings	(91.05)	71.38
	Interest and Other BorrowingCost Paid	(45.43)	(52.17)
	Payment of Lease Liability	(6.97)	(6.49)
	Net Cash flow from/(used in) Financing Activities	(150.82)	4.36
			-
	Net Increase/(Decrease) in cash & cash equivalents	(24.89)	(1,982.52)
	Cash & Cash equivalent at the beginningof theyear	302.38	2,284.90
	Cash & Cash equivalent at the end of theyear	277.49	302.38
	Cash & Cash Equivalents above comprises of the following
	Balances with banks
	- In current accounts	267.08	285.25
	Cash on hand	10.41	17.13

Note :

The cash flow statement has been prepared under the indirect method as set out in Indian Accounting Standards (Ind AS) 7, 'Statement of Cash Flows'.

As per our report of even date attached herewith

For and behalf of the Board of Directors of PBM Polytex Limited

For Mahendra N. Shah & Co. Chartered Accountants FRN: 105775W

Shri Gopal Patodia, Managing Director (DIN: 00014247)

Shri Mohan Kumar Patodia, Managing Director cum CFO (DIN: 00035381)

Shri Ashok Pandit, Independent Director (DIN: 08132980)

Shri Amit Patodia, CEO

Chirag M. Shah Partner

M. No.: 045706 Place : Ahmedabad Date: 28th May, 2025

Shri Sunil Somani, Finance Controller

Swati Billore

Company Secreary Place: Vadodara (M. No. F8321) Date: 28th May, 2025

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129

PBM POLYTEX LIMITED

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31ST MARCH, 2025

a. Equity Share capital

a. Equity Share capital
PARTICULARS	(Rs. In Lakhs)
As at 1st April, 2023	687.90
Changes duringtheyear 2023 - 2024	-
As at 31st March, 2024	687.90
Changes duringtheyear 2024 - 2025	-
As at 31st March, 2025	687.90

b. Other Equity

b. Other Equity	(Rs. In Lakhs)
Particulars	Reserves and Surplus					Total
	Share Capital Forfeiture	Capital Redemption Reserve	General Reserve	Capital Reserve	Retained Earnings
Balance at 1st April, 2023	0.23	125.00	10,442.62	1,483.39	(317.35)	11,733.89
Profit/(Loss)for theyear	-	-	-	-	(645.33)	-645.33
Other Comprehensive Income for the year (Including tax thereon)	-	-	-	-	35.89	35.89
Balance at 31st March, 2024	0.23	125.00	10,442.62	1,483.39	(926.79)	11,124.45
Balance at 1st April, 2024	0.23	125.00	10,442.62	1,483.39	(926.79)	11,124.45
Profit/(Loss)for theyear	-	-	-	-	(443.79)	-443.79
Other Comprehensive Income for the year (Including tax thereon)	-	-	-	-	82.56	82.56
Balance at 31st March, 2025	0.23	125.00	10,442.62	1,483.39	(1,288.03)	10,763.22

Gain of Rs. 82.56 Lakhs and Rs. 35.89 Lakhs on remeasurement of defined employee benefit plan (net of tax) is recognized as a part of retained earnings for the year ended 31st March, 2025 and 2024 respectively.

As per our report of even date attached herewith

For and behalf of the Board of Directors of PBM Polytex Limited

For Mahendra N. Shah & Co.

Chartered Accountants FRN: 105775W

Shri Gopal Patodia, Managing Director (DIN: 00014247)

Shri Mohan Kumar Patodia, Managing Director cum CFO (DIN: 00035381)

Shri Ashok Pandit, Independent Director (DIN: 08132980)

Chirag M. Shah

Shri Amit Patodia, CEO

Partner M. No.: 045706 Place : Ahmedabad Date: 28th May, 2025

Swati Billore Shri Sunil Somani, Finance Controller Company Secreary Place: Vadodara (M. No. F8321) Date: 28th May, 2025

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130

PBM POLYTEX LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31[ST] MARCH, 2025

1A CORPORATE INFORMATION

PBM Polytex Limited is a public company domiciled in India and is incorporated under the provisions of Companies Act applicable in India. The company is listed on the BSE limited (BSE). The registered office of the Company is located at Opp. Railway Station, Petlad – 388450, District - Anand, Gujarat, India.

The company is engaged in manufacture and processing of yarn. Its plants are located at Petlad, Gujarat and Boregaon, Madhya Pradesh. The Company has its wide market in local as well foreign market. The Company sells its products through established network.

The Consolidated Financial Statements comprise financial statements of PBM Polytex Limited (the “Company”) and its associate company M/s Eurotex Industries & Exports Limited (the “Associate Company”) for the year ended 31[st] March, 2025.

The consolidated financial statements were authorized for issue in accordance with a resolution of the directors on 28[th] May, 2025.

1B MATERIAL ACCOUNTING POLICIES

• (1) Basis of Preparation:

Compliance with Ind AS

These consolidated financial statements have been prepared in accordance with the Indian Accounting Standards (‘Ind AS’) as notified under the Companies (Indian Accounting Standards) Rules, 2015 read with Section 133 of the Companies Act, 2013 and presentation requirements of Division II of Schedule III to the Companies Act, 2013 (as amended from time to time).

Historical cost convention

The financial statements have been prepared on a historical cost basis, except for the following: 1) certain financial assets and liabilities that are measured at fair value;

2) defined benefit plans - plan assets measured at fair value;

Current and non-current classification

All assets and liabilities have been classified as current or non-current as per the Company’s normal operating cycle (twelve months) and other criteria set out in the Schedule III to the Act.

Principles of consolidation and equity accounting

Investments in associates are accounted for using the equity method of accounting, after initially being recognised at cost.

Under the equity method of accounting, the investments are initially recognised at cost and adjusted thereafter to recognise the company’s share of the post-acquisition profits or losses of the investee in profit and loss. Dividends received or receivable from associates and joint ventures are recognised as a reduction in the carrying amount of the investment.

When the company’s share of losses in an equity-accounted investment equals or exceeds its interest in the entity, including any other unsecured long-term receivables, the company does not recognise further losses, unless it has incurred obligations or made payments on behalf of the other entity.

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PBM POLYTEX LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31[ST] MARCH, 2025

Functional currency:

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

Rounding of amounts

All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakh as per the requirement of Schedule III, unless otherwise stated.

(2) Key accounting estimates & judgements:

The estimates and judgements used in the preparation of the financial statements are continuously evaluated by the Company and are based on historical experience and various other assumptions and factors (including expectations of future events) that the Company believes to be reasonable under the existing circumstances. Differences between actual results and estimates are recognised in the period in which the results are known/materialised.

The said estimates are based on the facts and events, that existed as at the reporting date, or that occurred after that date but provide additional evidence about conditions existing as at the reporting date.

(3) Property, Plant & Equipment:

Property, plant and equipment are stated at cost, net of recoverable taxes, less depreciation and impairment losses, if any. Such cost includes purchase price, borrowing cost and other cost directly attributable to the acquisition of the items.

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced. All other repairs and maintenance are charged to the Statement of Profit and Loss during the reporting period in which they are incurred.

All expenditure incurred towards property, plant and equipment including expenditure incurred during construction / new projects are accumulated and shown as capital work in progress and not depreciated until such assets are ready for commercial use.

Depreciation methods, estimated useful lives and residual value

Depreciation is provided on a Straight-Line Method over the estimated useful lives of assets as follows: -

ollows: -
Class of Assets	Estimated useful life
Buildings	5-60 years
Plant & Equipment	15-25 years
Electrical Installations	10 years
Furniture & Fixtures	10 years
Office Equipment	3-6 years
Vehicles	8-10years

The useful life as estimated above is aligned to the prescribed useful life specified under Schedule II to the Companies Act, 2013.

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PBM POLYTEX LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31[ST] MARCH, 2025

The residual values are not more than 5% of the original cost of the asset. The assets residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.

Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in the Statement of Profit and Loss.

Leasehold land is amortized over the period of lease.

(4)

Intangible Assets

Computer software is stated at cost, less accumulated amortisation and impairments, if any.

Amortisation method and useful life

The Company amortizes computer software using the straight-line method over the period of 5 years. Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in the Statement of Profit and Loss.

(5) Inventories:

Items of inventories of Raw Material, Finished goods, Spares and Stores, Packing Material, etc. are valued at lower of cost or net realizable value except waste which is valued at estimated net realizable value. Cost is computed on a weighted average basis. Cost of inventories comprise of cost of purchase, cost of conversion and other costs including manufacturing overheads incurred in bringing them to their respective present location and condition. The net realizable value is the estimated selling price in the ordinary course of business less the estimated cost of completion and estimated cost necessary to make the sale.

(6) Financial Instruments

i. Recognition and initial measurement

All financial assets and financial liabilities are initially recognized when the Company becomes a party to the contractual provisions of the instrument.

A financial asset or financial liability is initially measured at fair value plus, for an item not at fair value through profit and loss (FVTPL), transaction costs that are directly attributable to its acquisition or issue. Trade receivables that do not contain a significant financing component are measured at the transaction price determined under Ind AS 115.

ii. Classification and subsequent measurement Financial assets

On initial recognition, a financial asset is classified as measured at

• amortized cost;

• Fair Value through Other Comprehensive Income (FVOCI) – equity investment; or

• Fair Value Through Profit and Loss (FVTPL)

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

A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as at FVTPL:

• the asset is held within a business model whose objective is to hold assets to collect contractual cash flows; and

• the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

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PBM POLYTEX LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31[ST] MARCH, 2025

On initial recognition of an equity investment that is not held for trading, the Company may irrevocably elect to present subsequent changes in the investment’s fair value in OCI. (designated as FVOCI – equity investment). This election is made on an investment-byinvestment basis.

All financial assets not classified as measured at amortized cost or FVOCI as described above are measured at FVTPL. This includes all derivative financial assets. On initial recognition, the Company may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortized cost or at FVOCI or at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

Financial liabilities

Financial liabilities are classified as measured at amortized cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as held-for-trading, or it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognized in profit or loss. Other financial liabilities are subsequently measured at amortized cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognized in profit or loss. Any gain or loss on de-recognition is also recognized in profit or loss.

De-recognition

Financial assets

The Company de-recognizes a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all of the risks and rewards of ownership and does not retain control of the financial asset.

If the Company enters into transactions whereby it transfers assets recognized on its balance sheet, but retains either all or substantially all of the risks and rewards of the transferred assets, the transferred assets are not derecognized.

Financial liabilities

The Company de-recognizes a financial liability when its contractual obligations are discharged or cancelled, or expire. The Company also de-recognizes a financial liability when its terms are modified and the cash flows under the modified terms are substantially different. In this case, a new financial liability based on the modified terms is recognized at fair value. The difference between the carrying amount of the financial liability extinguished and the new financial liability with modified terms is recognized in profit or loss.

Off-setting

Financial assets and financial liabilities are offset and the net amount presented in the balance sheet when, and only when, the Company currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realize the asset and settle the liability simultaneously.

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PBM POLYTEX LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31[ST] MARCH, 2025

(7) Revenue recognition

Revenue is measured at the value of the consideration received or receivable, after deduction of any trade discount, volume rebates and any taxes or duties collected on behalf of Government such as Goods and Services Tax, etc.

The Company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the Company and specific criteria have been met for each of the Company’s activities as described below.

Sale of goods

Revenue from sale of goods is recognised when control of the products being sold is transferred to our customers and there are no longer any unfulfilled obligations. The performance obligations in our contracts are fulfilled at the time of dispatch, delivery or upon formal customer acceptance depending on customer terms.

Sale of Service

Revenue from contract with customers for job work charges is recognised on the basis of percentage of completion method.

Other revenue:

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable rate of interest.

Revenue in respect of insurance/other claims etc, is recognized only when it is reasonably certain that the ultimate collection will be made.

Dividends are generally recognised in the Statement of Profit and Loss only when the right to receive is established.

(8) Foreign Currency Transactions:

Foreign currency transactions are translated into the functional currency using exchange rate at the date of the transaction. Foreign exchange gains and losses from the settlement of these transactions are recognized in the statement of profit and loss. Foreign currency denominated monetary assets and liabilities are translated into functional currency at the exchange rates in effect at the balance sheet date, the gain or loss arising on such translations are recognized in the statement of profit and loss.

(9) Income tax

Income tax expense represents the sum of tax currently payable and deferred tax. Tax is recognized in the Statement of Profit and Loss, except to the extent that it relates to items recognized directly in equity or in other comprehensive income.

(a) Current Tax

Current tax includes provision for Income Tax computed under Special provision (i.e., Minimum alternate tax) or normal provision of Income Tax Act. Tax on Income for the current period is determined on the basis on estimated taxable income and tax credits computed in accordance with the provisions of the relevant tax laws and based on the expected outcome of assessments/appeals.

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PBM POLYTEX LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31[ST] MARCH, 2025

(b) Deferred Tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the balance sheet and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences.

Deferred tax assets are generally recognised for all deductible temporary differences, unabsorbed losses and unabsorbed depreciation to the extent that it is probable that future taxable profits will be available against which those deductible temporary differences, unabsorbed losses and unabsorbed depreciation can be utilised.

The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the balance sheet date. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis.

(10) Provisions, contingent liabilities and contingent assets

Provisions are recognised when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. Provisions are not recognised for future operating losses.

Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense.

Contingent Liabilities are disclosed in respect of possible obligations that arise from past events but their existence will be confirmed by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the Company or where any present obligation cannot be measured in terms of future outflow of resources or where a reliable estimate of the obligation cannot be made.

A contingent asset is a possible asset arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company. Contingent assets are not recognised till the realisation

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PBM POLYTEX LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31[ST] MARCH, 2025

of the income is virtually certain. However the same are disclosed in the financial statements where an inflow of economic benefit is possible.

(11) Employee benefits

Short-term obligations

Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognised in respect of employees’ services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled.

Other long-term employee benefit obligations

The liabilities for earned leave and sick leave that are not expected to be settled wholly within 12 months are measured as the present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the projected unit credit method.

Post-employment obligations

The Company operates the following post-employment schemes:

• (a) defined benefit plans such as gratuity; and

• (b) defined contribution plans such as provident fund.

Gratuity obligations

The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plan is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by actuaries using the projected unit credit method.

The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related obligation.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the Statement of Profit and Loss.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the balance sheet.

Gratuity liability of employees is funded with the approved gratuity trusts.

Defined Contribution Plans

Defined Contribution Plans such as Provident Fund, etc., are charged to the Statement of Profit and Loss as incurred. The Company contributes to Superannuation Trust for the Managerial Personnel of the Company as per the rules of the Trust.

(12) Borrowing costs

Interest and other borrowing costs attributable to qualifying assets are capitalised. Other interest and borrowing costs are charged to Statement of Profit and Loss.

(13) Earnings Per Share

ANNUAL REPORT 2024-25

137

PBM POLYTEX LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31[ST] MARCH, 2025

Basic earnings per share

Basic earnings per share is calculated by dividing:

• the profit attributable to owners of the Company

• average number of equity shares outstanding during the financial year, adjusted for bonus elements in equity shares issued during the year and excluding treasury shares.

Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account:

• the after income tax effect of interest and other financing costs associated with dilutive potential equity shares, and

• the weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive potential equity shares.

• (14)

Impairment of Assets:

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable Value. An impairment loss is charged to the statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognized in earlier accounting period is reversed if there has been a change in the estimate of recoverable amount.

(15)

Leases :

The Company has adopted Ind AS 116-Leases effective 1st April, 2019, using the modified retrospective method. The Company has applied the standard to its leases with the cumulative impact recognised on the date of initial application (April 1, 2019).

As a Leasee

At inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

The Company recognises a Right-of-Use (ROU) asset and a lease liability at the lease commencement date. The ROU asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payment made at or before the commencement date, plus any initial direct cost incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentive received.

The ROU asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the ROU asset or the end of the lease term. The estimated useful lives of ROU assets are determined on the same basis as those of Property, Plant and Equipment. In addition, the ROU asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate.

Short-term leases and leases of low-value assets

ANNUAL REPORT 2024-25

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PBM POLYTEX LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31[ST] MARCH, 2025

The Company has elected not to recognise right-to-use assets and lease liabilities for short-term lease that have a lease term of 12 months or less and leases of low-value assets. The Company recognise the lease payments associated with these leases as an expenses on a straight-line basis over the lease term.

As a Lessor

The Company, as a lessor, classifies a lease either as an operating lease or a finance lease. Leases are classified as finance lease whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases. The Company recognises lease payments received under operating leases as income on a straight-line basis over the lease term.

• (16) Cash and Cash Equivalents

Cash and cash equivalents comprise cash in hand, cash at bank, demand deposits with banks, other short-term highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

(17) Events occurring after the balance sheet date

• Assets and liabilities are adjusted for events occurring after the reporting period that provides additional evidence to assist the estimation of amounts relating to conditions existing at the end of the reporting period.

1C RECENT ACCOUNTING PRONOUNCEMENTS

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. During the year ended 31[st] March, 2025, MCA has notified Ind AS 117 – “Insurance Contracts” and amendments to Ind AS 116 – “Leases”, relating to sale and lease back transactions, applicable from 1[st] April, 2024. The Company has assessed that there is no impact on its financial statements.

On 9[th] May, 2025, MCA notified the amendments to Ind AS 21 – “Effects of Changes in Foreign Exchange Rates”. These amendments aim to provide clearer guidance on assessing currency exchangeability and estimating exchange rates when currencies are not readily exchangeable. The amendments are effective for annual periods beginning on or after 1[st] April, 2025. The Company is currently assessing the probable impact of these amendments on its financial statements.

ANNUAL REPORT 2024-25

139

PBM POLYTEX LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025

2. Property, plant and equipment	2. Property, plant and equipment	2. Property, plant and equipment	2. Property, plant and equipment	2. Property, plant and equipment	2. Property, plant and equipment	2. Property, plant and equipment	2. Property, plant and equipment	2. Property, plant and equipment	(Rs. in Lakhs)	(Rs. in Lakhs)	(Rs. in Lakhs)
Particular	*Freehold Land	Building	Plant and Equipment	Electric Installation	Furniture and fixtures	Vehicles	Office equipment	Computers	Right-of- Use Assets		Total
									Leasehold Land	Other Assets
Gross Value
Balance as at 1st April, 2023	137.25	2,270.99	11,748.76	537.28	177.61	388.32	62.20	45.36	25.36	30.23	15,423.36
Additions	-	-	545.03	0.53	2.50	39.24	3.73	4.16	-	-	595.19
Deduction & Adjustment	-	5.64	117.60	-	8.45	14.93	1.82	8.81	-	-	157.25
Balance as at 31st March, 2024	137.25	2,265.35	12,176.19	537.81	171.66	412.63	64.11	40.71	25.36	30.23	15,861.30
Additions	-	37.54	88.04	0.37	3.45	21.99	5.02	3.19	-	-	159.60
Deduction & Adjustment	-	-	63.00	-	0.09	9.61	0.94	3.18	-	-	76.82
Balance as at 31st March, 2025	137.25	2,302.89	12,201.22	538.18	175.02	425.01	68.19	40.72	25.36	30.23	15,944.08
Accumulated Depreciation
Balance as at 1st April, 2023	-	1,217.61	8,012.17	490.83	144.66	259.76	40.92	42.57	1.08	5.99	10,215.59
Depreciaton for theyear	-	51.91	262.06	3.47	5.10	25.31	7.31	3.01	0.36	4.92	363.45
Deduction & Adjustment	-	4.38	99.16	-	7.78	14.21	1.73	8.38	-	-	135.64
Balance as at 31st March, 2024	-	1,265.14	8,175.07	494.30	141.98	270.86	46.50	37.20	1.44	10.91	10,443.40
Depreciaton for theyear	-	42.07	270.61	3.36	4.91	29.26	6.85	3.18	0.36	4.92	365.51
Deduction & Adjustment			54.62	-	0.09	8.72	0.90	3.02	-	-	67.34
Balance as at 31st March, 2025	-	1,307.21	8,391.06	497.66	146.80	291.40	52.45	37.36	1.80	15.83	10,741.57
Net carrying amount
Balance as at 31st March, 2024	137.25	1,000.21	4,001.12	43.51	29.68	141.77	17.61	3.51	23.92	19.32	5,417.90
Balance as at 31st March, 2025	137.25	995.68	3,810.16	40.52	28.23	133.61	15.73	3.36	23.56	14.40	5,202.51

• Includes 100 Shares of Rs.10/- each (fully paid up) of The Friends Co-operative Housing Society Limited, Baroda.

• 2.1 All the title deeds for the immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) are in the name of the Company.

• 2.2 The Company has not done revaluation of PPE / Intangible assets.

• 2.3 Refer note no. 22.1 for details of charge created against the above mentioned assets.

ANNUAL REPORT 2024-25

140

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025

PBM POLYTEX LIMITED

(Rs. in Lakhs)

3 Capital Work in Progress

3 Capital Work in Progress
Particulars	As at 31/03/2025	As at 31/03/2024
Project in Progress	69.02	69.14
Total	69.02	69.14

3.1 Details of Capital work in progress Ageing

Ageing of Capital work-in-progress as at 31/03/2025 is as follows

Project In Progress

Project In Progress
Particulars	Amount in Capital work-in-progress for the Period of				Total
	Less than 1 Year	1-2 Year	2-3 Year	More than 3 Years
As at 31st March,2025	69.02	-	-	-	69.02
As at 31st March,2024	69.14	-	-	-	69.14

Note :

There are no projects under Capital Work in progress where the completion is overdue or has exceded its cost compared to its original plan.

ANNUAL REPORT 2024-25

141

PBM POLYTEX LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025

(Rs. in Lakhs)

(Rs. in Lakhs)	(Rs. in Lakhs)
4. Intangible Assets
Particular	Computer Software
Gross Value
Balance as at 1st April, 2023	28.35
Additions	-
Deduction & Adjustment	-
Balance as at 31st March, 2024	28.35
Additions	-
Deduction & Adjustment	-
Balance as at 31st March, 2025	28.35
Amortization
Balance as at 1st April, 2023	20.14
Deduction & Adjustment	-
Amortization for theyear	2.41
Balance as at 31st March, 2024	22.55
Deduction & Adjustment	-
Amortization for theyear	2.13
Balance as at 31st March, 2025	24.68
Net carrying amount
Balance as at 31st March, 2024	5.80
Balance as at 31st March, 2025	3.67

ANNUAL REPORT 2024-25

142

PBM POLYTEX LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025

5. Investments(Non-Current)
PARTICULARS	As at 31/03/2025		As at 31/03/2024
	Nos.	Rs. In Lakhs	Nos.	Rs. In Lakhs
Investments measured at Fair Value Through Profit & Loss In Equity Shares of Associate Companies Quoted, Fully Paid Up
M/s Eurotex Industries and Exports Limited (of Rs. 10 each)	22,31,980	-	22,31,980	-
Total of Investments measured at Fair Value Through Profit & Loss Investments measured at Amortized Cost In Preference Shares of Associate Companies Unquoted, Fully Paid Up		-		-
6% Non- Cumulative Non- convertible Redeemable Preference Shares of Rs. 10/- each of M/s Eurotex Industries and Exports Limited	46,00,000	186.17	46,00,000	172.38
Total of Investments measured at Amortized Cost		186.17		172.38
Total Non Current Investments		186.17		172.38
Aggregate amount of quoted Investments		- 280.34 186.17		- 312.48 172.38
Market Value of quoted Investments Aggregage amount of unquoted Investments

ANNUAL REPORT 2024-25

143

PBM POLYTEX LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025

(Rs. in Lakhs)

6. Other Financial Assets (Non Current)

6. Other Financial Assets(Non Current)
Particulars	As at 31/03/2025	As at 31/03/2024
Unsecured, Considered Good
SecurityDeposits
- Deposits with Related Parties	2.00	2.00
- Deposits with Others	84.32	81.03
Fixed Deposits with Banks*	0.00	0.08
Total	86.32	83.11

*given as security deposit to sales tax authorities

7. Other Non Current Assets

7. Other Non Current Assets
Particulars	As at 31/03/2025	As at 31/03/2024
Unsecured, Considered Good
Capital Advances	25.57	26.06
Others	45.54	0.71
Total	71.11	26.77

8. Inventories

8. Inventories
Particulars	As at 31/03/2025	As at 31/03/2024
Raw materials	2,972.03	4,014.82
Stores, Spares & Fuel (including Goods in Transit of Rs.19.65 Lakhs, PY Rs. 14.49 Lakhs)	188.00	157.37
Finishedgoods	1,180.90	1,102.09
Work in Process	326.01	299.78
Cotton Waste	40.42	46.60
Total	4,707.36	5,620.67

For valuation method of Inventories, refer note no. 1B(5). Refer note no. 22.1 for details of charges created against inventories.

ANNUAL REPORT 2024-25

144

9. Investments(Current)
PARTICULARS	As at 31/03/2025		As at 31/03/2024
	Units	Rs. In Lakhs	Units	Rs. In Lakhs
Investments measured at Fair Value Through Profit & Loss In Mutual Funds - Quoted
ICICI prudential overnight fund Total Current Investments	-	-	51,930.50	670.18
	-	-	51,930.50	670.18
Aggregate amount of quoted investments Market Value of quoted Investments Aggregage amount of unquoted Investments	- - -	- - -	- - -	670.18 670.18 -

ANNUAL REPORT 2024-25

145

PBM POLYTEX LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025

(Rs. in Lakhs)

(Rs. in Lakhs) PBM POLYTEX LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025	(Rs. in Lakhs) PBM POLYTEX LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025	(Rs. in Lakhs) PBM POLYTEX LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025
10. Trade Receivables(Current)
Particulars	As at 31/03/2025	As at 31/03/2024
Unsecured,Considered Good	1,434.69	962.93
Less: Provision for doubtful debts	11.09
Total	1,423.60	962.93

Refer Note No. 48 for ageing of trade receivales Refer note no. 22.1 for details of charges created against trade receivables.

11. Cash and Cash Equivalents

11. Cash and Cash Equivalents
Particulars	As at 31/03/2025	As at 31/03/2024
Balances with banks
- In current/cash credit accounts	267.08	285.25
Cash on hand	10.41	17.13
Total	277.49	302.38

12. Bank balances other than mentioned in cash and cash equivalents	12. Bank balances other than mentioned in cash and cash equivalents	12. Bank balances other than mentioned in cash and cash equivalents
Particulars	As at 31/03/2025	As at 31/03/2024
Unclaimed Dividend	12.75	20.12
Fixed Deposits with Banks*	15.37	14.44
Total	28.12	34.56

• under lien for security against margin money / overdraft facility

13. Loans (Current)

Particulars	As at 31/03/2025	As at 31/03/2024
Unsecured - Consideredgood
Loans to Employees	28.55	23.68
Secured - Consideredgood
Loans to Related Parties
-Inter Corporate Deposit with Associate Company	300.00	300.00
Total	328.55	323.68
14. Other financial assets(Current)
Particulars	As at 31/03/2025	As at 31/03/2024
Interest receivable	65.89	46.98
Total	65.89	46.98
15. Current tax asset(Net)
Particulars	As at 31/03/2025	As at 31/03/2024
Advance tax(net offprovision of income tax)	15.92	16.87
Total	15.92	16.87
16. Other Current Assets
Particulars	As at 31/03/2025	As at 31/03/2024
Unsecured, Considered Good
Advances to Suppliers & Others	241.75	225.79
Balance with Govt. Agencies	177.26	325.73
Prepaid Expenses	73.92	76.80
Total	492.93	628.32

16. Other Current Assets
Particulars	As at 31/03/2025	As at 31/03/2024
Unsecured, Considered Good
Advances to Suppliers & Others	241.75	225.79
Balance with Govt. Agencies	177.26	325.73
Prepaid Expenses	73.92	76.80
Total	492.93	628.32

ANNUAL REPORT 2024-25

146

PBM POLYTEX LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025

17	Share capital	(Rs. in Lakhs)	(Rs. in Lakhs)	(Rs. in Lakhs)	(Rs. in Lakhs)
	Particulars	As at 31/03/2025		As at 31/03/2024
		Units	Rs.	Units	Rs.
	Authorised Share Capital :
	EquityShares of Rs. 10 each	1,00,00,000	1,000.00	1,00,00,000	1,000.00
	Issued & Subscribed :
	EquityShares of Rs. 10 each	68,80,000	688.00	68,80,000	688.00
	Subscribed and Fully Paid Up
	EquityShares of Rs. 10 each	68,79,020	687.90	68,79,020	687.90
	Forfeited Shares
	EquityShares of Rs. 10 each	-	-	-	-
	Total	68,79,020	687.90	68,79,020	687.90

17.1 The reconciliation of the no. of shares outstanding is set out below :

Particulars	As at 31/03/2025	As at 31/03/2024
Equity shares
At Beginningof theperiod	68,79,020	68,79,020
Add : Issued duringtheyear	-	-
At End of theperiod	68,79,020	68,79,020

17.2 Details of shareholders holding more than 5% shares

Name of the shareholder	As at 31/03/2025	As at 31/03/2025	As at 31/03/2024	As at 31/03/2024
	Units	% of holding	Units	% of holding
M/s Eurotex Industries & Exports Ltd.	3,58,345	5.21%	3,58,345	5.21%
M/s Sambhu Investments Pvt Ltd	7,79,320	11.33%	7,79,320	11.33%
M/s Patodia Syntex Ltd.	7,12,957	10.36%	7,12,957	10.36%
M/s Trikon Investments Pvt Ltd	5,57,834	8.11%	5,57,834	8.11%

17.3 The Company has only one class of shares i.e. equity shares. All equity shares carry equal rights with respect to voting and dividend.

17.4 In the event of liquidation of the Company, the equity shareholders shall be entitled to proportionate share of their holding in the assets remaining after

17.5 Disclosure of Shareholding of Promoters

Disclosure of shareholding of promoters as at 31st March, 2025 is as follows

Promoter Name	As at 31/03/2025	As at 31/03/2025	As at 31/03/2024	As at 31/03/2024	% Change during the year
	No. of Shares	% of holding	No. of Shares	% of holding
Sambhu Investments Pvt Ltd	7,79,320	11.33	7,79,320	11.33	-
Patodia Syntex Ltd	7,12,957	10.36	7,12,957	10.36	-
Trikon Investments Pvt Ltd	5,57,834	8.11	5,57,834	8.11	-
Eurotex Industries and Exports Limited	3,58,345	5.21	3,58,345	5.21	-
Rajiv Agencies LLP	2,22,848	3.24	2,22,848	3.24	-
Manju Patodia	2,16,744	3.15	2,16,744	3.15	-
Madhu Patodia	2,12,594	3.09	2,12,594	3.09	-
Rani Krishan Kumar Patodia	2,10,511	3.06	2,10,511	3.06	-
Hari Prasad Siotia	1,99,280	2.90	1,99,280	2.90	-
Anita Patodia	1,48,194	2.15	1,48,194	2.15	-
Nandini Narayan Patodia	1,48,194	2.15	1,48,194	2.15	-
Krishan Kumar Patodia	1,41,028	2.05	1,41,028	2.05	-
Shashank Investments Private Limited	89,512	1.30	89,512	1.30	-
Amit Patodia	78,980	1.15	78,980	1.15	-
Shakuntala Devi Patodia	74,386	1.08	74,386	1.08	-
Siddharth krishan kumarpatodia	69,007	1.00	69,007	1.00	-
Narayan Patodia	68,849	1.00	68,849	1.00	-
Mohankumarpatodia	67,998	0.99	67,998	0.99	-
Aditi Jussawalla	63,467	0.92	63,467	0.92	-
Priyagopalpatodia	56,553	0.82	56,553	0.82	-
Chandramauli Investment Pvt Ltd	56,314	0.82	56,314	0.82	-
Vikashpatodia	49,518	0.72	49,518	0.72	-
Yashvardhan Narayan Patodia	47,173	0.69	47,173	0.69	-
Devan Patodia	45,917	0.67	45,917	0.67	-
Gaurav Narayan Patodia	44,995	0.65	44,995	0.65	-
Gopal Patodia	27,369	0.40	27,369	0.40	`
Shailja Patodia	3,125	0	3,125	0.05	-
Maharashtra Fibre and Syntex Ltd.	447	0.01	447	0.01	-
Thrust Investment and Management Consultants LLP	6,473	0.09	6,473	0.09	-

ANNUAL REPORT 2024-25

147

PBM POLYTEX LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025

Disclosure of shareholding of promoters as at 31st March, 2024 is as follows

Promoter Name	As at 31/03/2024	As at 31/03/2024	As at 31/03/2023	As at 31/03/2023	% Change during the year
	No. of Shares	% of holding	No. of Shares	% of holding
Sambhu Investments Pvt Ltd	7,79,320	11.33	7,79,320	11.33	-
Patodia Syntex Ltd	7,12,957	10.36	7,12,957	10.36	-
Trikon Investments Pvt Ltd	5,57,834	8.11	5,57,834	8.11	-
Eurotex Industries and Exports Limited	3,58,345	5.21	3,58,345	5.21	-
Rajiv Agencies LLP	2,22,848	3.24	2,22,848	3.24	-
Manju Patodia	2,16,744	3.15	2,16,744	3.15	-
Madhu Patodia	2,12,594	3.09	2,12,594	3.09	-
Rani Krishan Kumar Patodia	2,10,511	3.06	2,10,511	3.06	-
Hari Prasad Siotia	1,99,280	2.90	1,99,280	2.90	-
Anita Patodia	1,48,194	2.15	1,48,194	2.15	-
Nandini Narayan Patodia	1,48,194	2.15	1,48,194	2.15	-
Krishan Kumar Patodia	1,41,028	2.05	1,41,028	2.05	-
Shashank Investments Private Limited	89,512	1.30	89,512	1.30	-
Amit Patodia	78,980	1.15	78,980	1.15	-
Shakuntala Devi Patodia	74,386	1.08	74,386	1.08	-
Siddharth krishan kumarpatodia	69,007	1.00	69,007	1.00	-
Narayan Patodia	68,849	1.00	68,849	1.00	-
Mohankumarpatodia	67,998	0.99	67,998	0.99	-
Aditi Jussawalla	63,467	0.92	63,467	0.92	-
Priyagopalpatodia	56,553	0.82	56,553	0.82	-
Chandramauli Investment Pvt Ltd	56,314	0.82	56,314	0.82	-
Vikashpatodia	49,518	0.72	49,518	0.72	-
Kirti Patodia	-	-	47,173	0.69	(0.69)
Yashvardhan Narayan Patodia	47,173	0.69	47,173	0.69	-
Devan Patodia	45,917	0.67	45,917	0.67	-
Gaurav Narayan Patodia	44,995	0.65	44,995	0.65	-
Gopal Patodia	27,369	0.40	27,369	0.40	-
Shailja Patodia	3,125	0.05	3,125	0.05	-
Maharashtra Fibre and Syntex Ltd.	447	0.01	447	0.01	-
Thrust Investment and Management Consultants LLP	6,473	0.09	6,473	0.09	-

ANNUAL REPORT 2024-25

148

PBM POLYTEX LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025

(Rs. in Lakhs)

18. Other Equity	18. Other Equity	18. Other Equity
Particulars	As at 31/03/2025	As at 31/03/2024
Share Capital Forfeiture	0.23	0.23
CAPITAL RESERVE:
Balance asper lastyear	1,483.39	1,483.39
Add: Appropriations From Currentyear's Profit	0.00	0.00
Balance at the end of the Year	1,483.39	1,483.39
General Reserve
Balance asper lastyear	10,442.62	10,442.62
Add: Appropriations From Currentyear's Profit	0.00	0.00
Balance at the end of the Year	10,442.62	10,442.62
Share Capital Redemption Reserve	125.00	125.00
Surplus in Statement of Profit & Loss
Balance at the beginningof the Year	(926.80)	(317.35)
Add: Total Comprehensive Income/(Loss)for theyear	(361.23)	(609.44)
Balance at the end of the Year	(1,288.03)	(926.80)
Total	10,763.21	11,124.44

Share Capital Redemption Reserve

Capital Redemption Reserve represents reserve created during buy back of Equity Shares and it is a nondistributable reserve.

General Reserve

General Reserve has been created by transfer out of profit generated by the Company and is available for distribution to shareholders. Under the erstwhile Companies Act, 1956, a general reserve was created through an annual transfer of net profit at a specified percentage in accordance with applicable regulations. Consequent to the introduction of the Companies Act, 2013, the requirement to mandatory transfer a specified percentage of net profit to general reserve has been withdrawn.

Retained Earnings

Retained earnings are the profits that the Company has earned till date including effect of remeasurement of defined benefit obligations less any transfers to general reserve, dividends or other distributions paid to shareholders. Retained Earnings is a free reserve available to the Company.

ANNUAL REPORT 2024-25

149

PBM POLYTEX LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025

(Rs. in Lakhs)

19. Other financial liabilities(Non Current)	19. Other financial liabilities(Non Current)	19. Other financial liabilities(Non Current)
Particulars	As at 31/03/2025	As at 31/03/2024
Security Deposits (From Debtors,Employees and Contractors)	1.00	1.20
Total	1.00	1.20
20. Provisions(Non Current)
Particulars	As at 31/03/2025	As at 31/03/2024
Provision for employee benefits
- Leave Encashment(unfunded)	73.47	74.08
Total	73.47	74.08
21. Deferred Tax Liabilities(Net)
Particulars	As at 31/03/2025	As at 31/03/2024
LiabilityRelatingto earlieryears	297.22	487.16
Add/(Less): Liability/(Assest)for theyear
- Charged/(Credited)to P & L	(153.76)	(202.01)
- Charged/(Credited)to OCI	27.77	12.07
TOTAL	171.23	297.22
21.1 Component of Deferred Tax Liabilities(Net)
Particulars	As at 31/03/2025	As at 31/03/2024
Depreciation	752.87	759.56
Employee Benefits	3.88	(12.50)
Carried forward losses/unabsorbed depreciation	(375.61)	(247.34)
Other TimingDifferences	(209.91)	(202.50)
TOTAL	171.23	297.22
21.2 Component of Deferred Tax Expense/ (Income)
Particulars	2024-25	2023-24
- Charged/(Credited) to P & L
Depreciation	(6.68)	27.63
Employee Benefits	(11.39)	7.21
Carried forward losses/unabsorbed depreciation	(128.27)	(247.34)
Other TimingDifferences	(7.42)	10.49
	(153.76)	(202.01)
- Charged/(Credited) to OCI
Employee Benefits	27.77	12.07
	27.77	12.07
TOTAL	(125.99)	(189.94)

22. Borrowings (Current)

22. Borrowings (Current)
Particulars	As at 31/03/2025	As at 31/03/2024
Current Interest-bearing loans and borrowings
Working Capital Facilities
From banks
Secured	16.80	107.85
Total	16.80	107.85

ANNUAL REPORT 2024-25

150

PBM POLYTEX LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025

(Rs. in Lakhs)

22.1 Details of Security and Interest of working capital facilities from banks

22.1 Details of Security and Interest of working capital facilities from banks
Nature of Security	Terms of Interest
IDBI Bank: Primary Security - First pari passu charge over current assets of the company. Collateral Security - First pari passu charge over fixed assets of the company.	RLRR plus 185 bps p.a.
State Bank of India: Primary Security - First charge on pari passu basis over the hypothecation of entire current assets of the company with IDBI. Collateral Security - First pari passu charge over the entire fixed assets of the company including hypothecation over plant and machinery and mortgage over land and building of the company.	2.80% above MCLR- 6M

23. Trade Payables (Current)

23. Trade Payables(Current)
Particulars	As at 31/03/2025	As at 31/03/2024
Total outstanding dues of micro & small Enterprises (Refer Note No. 49.1)	13.92	9.14
Total outstanding dues of creditors other than micro & small enterprises	350.20	213.32
Total	364.12	222.46

(Refer Note No. 49.2 For ageing of trade payables)

24. Other Financial Liabilities (Current)

24. Other Financial Liabilities(Current)
Particulars	As at 31/03/2025	As at 31/03/2024
Unclaimed dividends*	12.75	20.12
Dues to Employees and others	157.40	192.90
Total	170.15	213.02

* There are no amounts due for payment to Investor Education and Protection Fund under Section 125 of the Companies Act, 2013 as at year end.

25. Other Current liabilities

25. Other Current liabilities
Particulars	As at 31/03/2025	As at 31/03/2024
Credit Balances of customers	5.24	1,208.76
SecurityDeposit from Customer	307.02	0.00
StatutoryDues	44.49	40.41
Other Payables	221.87	266.88
Total	578.62	1,516.06
26. Provisions(Current)
Particulars	As at 31/03/2025	As at 31/03/2024
Provision for employee benefits
- Leave Encashment(unfunded)	34.90	39.08
- Bonus	79.63	75.81
Total	114.53	114.89

ANNUAL REPORT 2024-25

151

PBM POLYTEX LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025

(Rs. in Lakhs)

(Rs. in Lakhs) PBM POLYTEX LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025	(Rs. in Lakhs) PBM POLYTEX LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025	(Rs. in Lakhs) PBM POLYTEX LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025
27. Revenue from Operations
Particulars	2024-25	2023-24
Sale of Products	17,266.59	18,872.58
Sale of Services(Job Work Charges)	125.87	7.22
Other OperatingRevenue
-Sale of Scrap	8.53	11.19
-Export Incentive Income	220.49	266.12
Total	17,621.48	19,157.11
27.1 Sale of Products
Name of Products	2024-25	2023-24
Yarn sales	16,199.35	17,606.70
Cotton/Yarn Waste Sales	941.92	1,140.22
Sale of ElectricityUnits	125.32	125.67
Total	17,266.59	18,872.58

28. Other income

28. Other income
Particulars	2024-25	2023-24
Interest income on financial assets measured at amortised cost :
- Fixed deposits	1.14	5.38
- Securitydeposits	4.99	4.95
- Loan to relatedparty	21.00	21.00
- Preference shares	13.79	12.77
- Others	2.22	0.00
Effect of fair valuation of investments through FVTPL	0.00	1.18
Net Gain on sale of Investments	145.45	132.97
Insurance claims Recevied	2.71	0.95
Gain on sale ofproperty, plant and equipment	5.08	111.56
Foreign Exchange Fluctuation Gain	0.00	3.01
Excess Provision/SundryBalances written back	1.62	128.45
Other Miscellaneous Income	0.25	0.12
Total	198.25	422.33

ANNUAL REPORT 2024-25

152

PBM POLYTEX LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025

(Rs. in Lakhs)

29. Cost of materials consumed	29. Cost of materials consumed	29. Cost of materials consumed
Particulars	2024-25	2023-24
OpeningStock	4,014.82	1,668.96
Add : Purchases	11,137.14	15,858.61
Sub Total	15,151.96	17,527.57
Less : ClosingStock	2,972.03	4,014.82
Total	12,179.93	13,512.75

30. Changes in Inventories of Finished goods, WIP and Waste

Particulars	2024-25	2023-24
Inventories at the beginning of theyear
Finished Goods	1,102.09	1,413.72
WIP	299.78	331.34
Waste	46.60	94.44
Sub Total	1,448.48	1,839.51
Less : Inventories at the end of theyear
Finished Goods	1,180.90	1,102.09
WIP	326.01	299.78
Waste	40.42	46.60
Sub Total	1,547.33	1,448.48
Net Decrease/ (Increase) in Inventories	(98.86)	391.03

31. Employee benefit expense

31. Employee benefit expense
Particulars	2024-25	2023-24
Salaries,wages and bonus	1,970.54	1,954.49
Contribution toprovident and other funds	147.16	143.75
Gratuityexpense (Refer Note No. 42)	46.36	44.98
Staff welfare expenses	98.97	78.92
Total	2,263.04	2,222.14

32. Finance costs

Particulars	2024-25	2023-24
Interest Expenses	1.77	5.03
Interest on lease liability	2.04	2.48
Other BorrowingCosts	43.65	47.14
Total	47.46	54.65

ANNUAL REPORT 2024-25

153

PBM POLYTEX LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025

(Rs. in Lakhs)

33. Depreciation and Amortization Expenses

Particulars	2024-25	2023-24
Depreciation on Property,Plant & Equipment	360.24	358.18
Amortization of Intangible Assets	2.12	2.40
Amortization of Leasehold Land	0.36	0.36
Depreciation on Other Right-of-Use Assets	4.92	4.92
Total	367.64	365.86

34. Other expenses

Particulars	2024-25	2023-24
Consumption of stores andpackingmaterial	344.72	358.22
Power and fuel	2,173.04	2,398.22
Rent Expense	46.10	50.35
Repairs:-
- Machinery (includingspares)	208.10	219.19
- Building	50.11	33.36
- Others	46.48	38.85
Insurance	58.95	76.42
Rates and Taxes	53.68	13.86
Licence Fees,Legal & Professional Charges	72.61	69.38
Sales and Distribution Expenses	343.65	394.70
Travellingand conveyance	161.86	148.37
Directors SittingFees	8.10	6.00
Audit Fees and Expenses(Refer Note No. 34.1)	7.76	7.12
Donation	6.85	2.33
Foreign Exchange Fluctuation Loss	4.07	5.04
CSR Expenses(Refer Note No. 39)	0.00	10.65
Effect of fair valuation of investments through FVTPL	1.17	0.00
Provision for Doubtful Debts	11.09	0.00
Other General Expenses	60.06	60.83
Total	3,658.41	3,892.90

34.1 Auditor's Remuneration

Particulars	2024-25	2023-24
As auditor :
Audit fees	5.50	5.00
Tax Audit Fees	1.00	1.00
Reimbursement of expenses	1.26	1.12
Total	7.76	7.12

ANNUAL REPORT 2024-25

154

PBM POLYTEX LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025

PBM POLYTEX LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025	PBM POLYTEX LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025	PBM POLYTEX LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025
(Rs. in Lakhs) 35. Earning Per Share
Particulars	2024-25	2023-24
Net Profit/(Loss) for the year attributable to Equity Shareholders (Rs. In Lakhs)	(443.79)	(645.33)
Weighted Average number of Equity Shares outstanding of Face Value of Rs. 10 each.(Nos.)	68,79,020	68,79,020
Number of EquityShares for Basic EPS(Nos.)	68,79,020	68,79,020
Add : Diluted Potential EquityShares(Nos.)	0	0
Number of EquityShares for Diluted EPS(Nos.)	68,79,020	68,79,020
Basic EarningPer Share(Rs.)	(6.45)	(9.38)
Diluted EarningPer Share(Rs.)	(6.45)	(9.38)
Nominal Value Per Share(Rs.)	10.00	10.00

36. Disclosure under Ind As 116 - Leases

36. Disclosure under Ind As 116 - Leases	36. Disclosure under Ind As 116 - Leases	36. Disclosure under Ind As 116 - Leases
36.1 Lease liabilities included in financial statements
Particulars	As at 31/03/2025	As at 31/03/2024
Current	5.95	4.93
Non-Current	11.67	17.62
Total	17.62	22.56
36.2 Movement in Lease Liability during theyear
Particulars	2024-25	2023-24
Balance at the beginningof theyear	22.56	26.57
Additions	0.00	0.00
Finance Cost accrued duringtheyear	2.04	2.48
Payment of Lease Liabilities(includinginterest)	(6.97)	(6.49)
Balance at the end of theyear	17.62	22.56
36.3 Maturity Analysis of Undiscounted cash flow of the lease liability
Particulars	As at 31/03/2025	As at 31/03/2024
Less than 1year	7.45	6.97
1 to 5years	8.65	15.45
More than 5years	39.02	40.32
36.4 Movement in Right to Use of Assets during theyear
Particulars	2024-25	2023-24
(B) Leasehold Land
Balance at the beginningof theyear	23.92	24.28
Addition duringtheyear	0.00	0.00
Amortisation duringtheyear	(0.36)	(0.36)
Balance at the end of theyear	23.56	23.92
(A) Buildings
Balance at the beginningof theyear	19.32	24.24
Addition duringtheyear	0.00	0.00
Amortisation duringtheyear	(4.92)	(4.92)
Balance at the end of theyear	14.40	19.32

36.5 Expense relating to short-term leases are disclosed under the head rent expense in other expenses (Refer Note 34).

36.6 Amount recognised in statement ofprofit and loss:	36.6 Amount recognised in statement ofprofit and loss:	36.6 Amount recognised in statement ofprofit and loss:
Particulars	2024-25	2023-24
Amortisation of Leasehold Land	0.36	0.36
Depreciation charged on Right of Use Assets	4.92	4.92
Interest Expense included in Finance Cost	2.04	2.48

ANNUAL REPORT 2024-25

155

PBM POLYTEX LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025

(Rs. in Lakhs)

37. Contingent Liabilities and Commitments	37. Contingent Liabilities and Commitments	37. Contingent Liabilities and Commitments
Particulars	As at 31/03/2025	As at 31/03/2024
Contingent Liabilities
Claim by Director of Industries, Gujarat in Gujarat High Court for non- deliveryofyarn in theyear 1978	1.09	1.09
Bills discounted under Export/Inland Letters of Credit	58.30	143.66
Disputed wages against employee which company has preferred appeal before court	120.87	120.87
Commitments
Estimated amount of contracts remaining unexecuted on capital account and notprovided for in Books(net of advances)	220.97	220.97
Other commitments	-	-

38. Segment Information

The company manufactures and deals in single segment, i.e. manufacturing of cotton yarn. Therefore no separate disclosure as per Ind AS 108 - "Operating Segments" is given.

38.1 Geographical Information

38.1 Geographical Information
Revenue from external customers	2024-25	2023-24
India	13,527.31	14,161.89
Outside India	3,865.14	4,717.92
Total	17,392.46	18,879.81

38.2 There are no Non Current Assets other than in India.

39. Corporate Social Responsibility

Particulars	2024-25	2023-24
1. Gross amount required to be spent bythe Company	NA	22.64
2. Amount spent duringtheyear
(i)construction/acquisition of anyasset		-
(ii)onpurposes other than(i)above		10.65
3. Shortfall at the end of theyear		-
4. Total ofpreviousyears' shortfall		-
5. Reasons for shortfall		-
6. The nature of CSR activities undertaken by the Company		-
- PromotingHealthcare		5.00
- PromotingEducation		0.65
- Promotion of Art and Culture		5.00
- Women Empowerment		-
7. CSR transactions with relatedparties		-

ANNUAL REPORT 2024-25

156

PBM POLYTEX LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025

(Rs. in Lakhs)

40. Income Taxes	40. Income Taxes	40. Income Taxes
Particulars	2024-25	2023-24
The major components of income tax expense for theyear as under:
Current tax	-	-
Deferred tax(Refer Note No. 21.2)	(125.99)	(189.94)
Adjustment of tax for earlieryears	(0.35)	(12.55)
Total tax expenes charged to statement of Profit and Loss	(126.35)	(202.49)
40.1 Reconcilliation of Effective Tax Rate
Particulars	2024-25	2023-24
Applicable Tax Rate	25.168%	25.168%
Profit before tax	(597.90)	(859.89)
Other Comprehensive Income	110.33	47.96
Income tax expense at tax rates applicable to individual entities	(122.71)	(204.35)
Income exempt from tax	0.00	0.00
Expenses that are not decuctible	2.02	3.27
Adjustment of tax for earlieryears	(0.35)	(12.55)
Impact of changes in tax rates	0.00	0.00
Others	(5.31)	11.13
Income Tax Expenses recongnised in Statement of Profit and Loss	(126.35)	(202.49)

ANNUAL REPORT 2024-25

157

PBM POLYTEX LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025

(Rs. In Lakhs)

41. Related Party Disclosures

As per the Indian Accounting Standard on "Related Party Disclosures" (Ind AS 24), the related parties of the Company are as follows:

41.1 Name of the Related Parties and Nature of Relationship:

Enterprises owned or significantly influenced by key management personnel (with whom the Company entered into transactions during the year)

M/s Patodia Syntex Limited M/s Murarilal Mahendrakumar M/s Sambhu Investments Pvt. Limited M/s Brijlal Purushottamdas M/s Shashank Investment Pvt. Limited M/s Dharamchand Keshardeo M/s Veepee Intrades Pvt. Limited M/s Chandramauli Global Ventures LLP M/s B.L.Patodia Family Trust M/s Suragini Enterprises LLP

Associate company :

M/s Eurotex Industries and Exports Limited

Key Managerial Personnel, Directors and Relatives:

Shri Gopal Patodia Managing Director Shri Mohan Kumar Patodia Managing Director cum Chief Financial Officer Shri Amit Patodia Senior President cum Chief Executive Officer Smt. Swati Sharda Company Secretary (upto 21/05/2024) Smt. Kirti Chauhan Company Secretary (from 11/06/2024 to 11/03/2025) Smt. Swati Billore Company Secretary (from 11/03/2025) Shri Kishankumar Patodia Chairman Shri Hari Prasad Siotia Non-Executive Director Shri Ashok Pandit Independent Director Shri Rakesh Todi Independent Director Shri Chirayush Patel Independent Director Ms. Amishal Modi Independent Director

41.2 Transactions with Related Parties :	(Rs. In Lakhs)	(Rs. In Lakhs)	(Rs. In Lakhs)	(Rs. In Lakhs)
Transactions	Associates & Enterprises owned or Significantly influenced by KMP		Key Managerial Personnel, Directors & Relatives
	2024-25	2023-24	2024-25	2023-24
Purchase of Goods(Net of GST)
- M/s Eurotex Industries and Exports Limited	11.60	4.44		-
Purchase of Property,plant & equipment(Net of GST)
- M/s Eurotex Industries and Exports Limited	12.31	-	-	-
Sales of Goods(Net of GST)
- M/s Eurotex Industries and Exports Limited	0.03	-	-	-
Rent Paid(Net of GST)
- M/s Patodia Syntex Limited	1.20	1.20		-
- M/s Sambhu Investments Pt. Limited	7.80	7.80		-
- M/s B.L.Patodia FamilyTrust	2.88	2.88		-
- M/s Murarilal Mahendrakumar	4.50	4.50		-
- M/s Brijlal Purushottamdas	1.80	1.80		-
- M/s Dharamchand Keshardeo	1.80	1.80		-
- M/s Eurotex Industries and Exports Limited	0.90	1.50		-
Rent Received(Net of GST)
- M/s Shashank Investment Pvt. Limited	0.03	0.03		-
- M/s Veepee Intrades Pvt. Limited	0.03	0.03		-
- M/s Chandramauli Investment Pvt. Limited	0.03	0.03		-
- M/s Suragini Investment Pvt. Limited	0.03	0.03		-

ANNUAL REPORT 2024-25

158

Sitting Fees
Shri Kishankumar Patodia		-	0.15	0.15
Shri Hari Prasad Siotia		-	0.45	0.45
Shri Ashok Pandit		-	2.40	1.65
Shri Rakesh Todi		-	1.50	1.65
Shri Chirayush Patel		-	2.40	1.20
Ms. Amishal Modi		-	1.20	0.90
Interest Income
- M/s Eurotex Industries and Exports Limited	21.00	21.00		-
Remuneration to KMP*
- ManagingDirectors		-	112.79	115.02
- Senior President cum Chief Executive Officer		-	49.35	48.37
- CompanySecretary		-	3.89	3.84

*Does not include provision made for gratuity and compensated absences as they are determined on actuarial basis for all employees together.

41.3 Outstanding Balances:	(Rs. In Lakhs)	(Rs. In Lakhs)	(Rs. In Lakhs)	(Rs. In Lakhs)
Transactions	Associates & Enterprises owned or Significantly influenced by KMP		Key Managerial Personnel
	As at 31/03/2025	As at 31/03/2024	As at 31/03/2025	As at 31/03/2024
Security depositsgiven
- M/s Sambhu Inestments Pt. Limited	2.00	2.00	-	-
Investmensts
Investments in 46,00,000 6% Non-Cumulative Non-Convertible Redeemable Preference Shares of Rs.10/- each of M/s. Eurotex Industries and Exports Limited. (Stated at Amortized Cost) (Purchase Value Rs. 460 Lakhs)	186.17	172.38	-	-
Loan Given
- M/s Eurotex Industries and Exports Limited	300.00	300.00	-	-
Interest Accrued
- M/s Eurotex Industries and Exports Limited	65.55	46.65	-	-
Trade Receivables/ (Payables)
- M/s Eurotex Industries and Exports Limited	12.67	(0.08)	-	-
Remuneration Payable to
- ManagingDirector	-	-	9.81	11.68
- CompanySecretary	-	-	0.57	0.30
- Senior President	-	-	4.00	4.77

Terms and conditions of transactions with related parties:

Outstanding balances at the year-end are unsecured and interest free (except loan to Associate Company) and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables or payables.

ANNUAL REPORT 2024-25

159

PBM POLYTEX LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025

(Rs. in Lakhs)

42 DISCLOSURES AS REQUIRED BY INDIAN ACCOUNTING STANDARD (IND AS) 19 "EMPLOYEE BENEFITS"

(a) Defined contribution plans

Contribution to defined contribution plans, recognised as expense for the year is as under :

Particulars	2024-25	2023-24
Employer's contribution to Provident Fund	51.70	49.32
Employer's contribution to Superannuation Fund	21.43	17.77
Employer's contribution to Pension Scheme	69.31	70.37

(b) Defined benefit plan

Details of defined benefit obligation and plan assets in respect of retiring gratuity are given below :

• i) Reconciliation of opening and closing balances of defined benefit obligation

Particulars	2024-25	2023-24
Present value of obligation as at the beginningof theyear	1,331.53	1,294.96
Interest Cost	81.20	81.42
Current Service Cost	58.61	57.17
Benefits Paid	(54.04)	(57.45)
Actuarial(Gain)/Loss on arisingfrom Change in Financial Assumption	(25.32)	(30.44)
Actuarial(Gain)/Loss on arisingfrom Change Demographic Assumption	(20.38)	10.51
Actuarial(Gain)/Loss on arisingfrom Experience Adjustment	(47.54)	(24.65)
Present value of obligation as at the end of theyear	1,324.05	1,331.53

ii) Reconciliation of opening and closing balances of fair value of plan assets

iii) iv) v) vi)	Particulars	2024-25	2023-24
	Fair Value ofplan assets at the beginningof theyear	1,470.97	1,431.42
	Interest Income	93.45	93.61
	Contributions bythe employer	0.00	0.00
	Benefitspaid	(54.04)	(57.45)
	Return onplan assets	17.09	3.38
	Fair Value ofplan assets at the end of theyear	1,527.46	1,470.97
	Reconciliation of fair value of assets and obligations
	Particulars	As at 31/03/2025	As at 31/03/2024
	Fair Value ofplan assets	1,527.46	1,470.97
	Present value of obligation	1,324.05	1,331.53
	Amount recognised in Balance Sheet[Surplus/(Deficit)]	203.41	139.44
	Expenses recognised during theyear
	Particulars	2024-25	2023-24
	(A) In the Statement of Profit & Loss
	Interest Cost	(12.25)	(12.19)
	Current Service Cost	58.61	57.17
	Net Cost	46.36	44.98
	(B) In Other Comprehensive Income
	Actuarial(Gain)/Loss	(93.24)	(44.58)
	Return on Plan Assets	(17.09)	(3.38)
	Net Expense/(Income)recognized in Other Comprehensive Income	(110.33)	(47.96)
	Investment Details :
	Particulars	As at 31/03/2025	As at 31/03/2024
	Insurance Plan	100.00%	100.00%
	Actuarial Assumptions
	Particulars	As at 31/03/2025	As at 31/03/2024
	MortalityTable	IALM(2012-14)	IALM(2012-14)
	Discount Rate	6.60%	7.20%
	Expected rate of return onplan assets	6.60%	7.20%
	Rate of escalation in salary	5.00%	6.00%

vii) Sensitivity Analysis

Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate, expected salary increase and employee turnover. The sensitivity analysis below, have been determined based on reasonably possible changes of the assumptions occurring at the end of the reporting period, while holding all other assumptions constant. The result of sensitivity analysis is given below :

Particulars	As at 31/03/2025	As at 31/03/2024
Sensitivity Level - Discount Rate
0.5% Increase	1,312.94	1,299.56
0.5% Decrease	1,374.32	1,365.12
Sensitivity Level - Salary Escalation		0.00
0.5% Increase	1,372.19	1,362.95
0.5% Decrease	1,314.71	1,301.34
Sensitivity Level - Withdrawal Rate		0.00
W.R. X 110%	1,349.68	1,333.71
W.R. X 90%	1,344.18	1,329.20

viii) Expected contribution to the defined benefit plan for the next reporting period - Rs. 52.14 Lakhs

• ix) Maturity Profile of Defined Benefit Obligation

Particulars	As at 31/03/2025	As at 31/03/2024
Within the next 12 months(next annual reporting period)	373.46	407.38
Between 2 to 5years	393.06	442.48
Beyond 5years	580.32	590.76
Weighted Average duration of Defined Plan Obligation
Particulars	As at 31/03/2025	As at 31/03/2024
Gratuity	6.64 Years	5.775 Years

• x) Weighted Average duration of Defined Plan Obligation

ANNUAL REPORT 2024-25

160

PBM POLYTEX LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025

(Rs. in Lakhs)

43 Financial Instruments - Fair Values & Risk Management 43.1 Accounting Classifications & Fair Value Measurements

The fair values of the financial assets and liabilities are measured at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

All financial instruments are initially recognized and subsequently re-measured at fair value as described below :

1. The fair value of investment in quoted equity shares and mutual funds is measured at quoted price or NAV.

2. Fair values of cash and short term deposits, trade and other short term receivables, trade payables, other current liabilities, short term loans from banks and other financial institutions approximate their carrying amounts largely due to short-term maturities of these instruments.

3. Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counterparty. Based on the evaluation, allowances are taken to account for the expected losses of these receivables.

4. The fair value of forward foreign exchange contracts and currency swaps is determined using forward exchange rates and yield curves at the balance sheet date.

The company uses the following hierarchy for determining and disclosing the fair values of financial instruments by valuation technique:

Level 1 : Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 : Inputs other than the quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3: Input that is significant to the fair value measurement is unobservable.

I. Figures as at March 31, 2025

I. Figures as at March 31, 2025
Particulars	Level 1 Level 2 Level 3 Fair value Carrying Amount
Other Non Current Financial Assets Trade Receivables Cash and Cash Equivalents Other Current Financial Assets Lease Liabilities Trade Payables Financial liabilities at fair value through profit or loss: TOTAL TOTAL Financial liabilities at amortised cost: Borrowings (Current) Other Financial Liabilities TOTAL Bank Balances Other than Cash and Cash Equivalents Investments (Non-Current) TOTAL Financial assets at fair value through profit or loss: Investments (Current) Investments (Non-Current) Financial assets at amortised cost:	186.17 - - 86.32 - - 1423.60 - - 277.49 - - 28.12 - - 394.44 - -
	2,396.14 - - -
	- - - - - -
	- - - -
	17.62 - - 16.80 - - 364.12 - - 171.15 - -
	569.70 - - -
	- - -
	- - - -

ANNUAL REPORT 2024-25

161

PBM POLYTEX LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025

(Rs. in Lakhs)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS	(Rs. in Lakhs) FOR THE YEAR ENDED ON 31ST MARCH, 2025
II. Figures as at March 31, 2024
Particulars	Level 1 Level 2 Level 3 Fair value Carrying Amount
Other Non Current Financial Assets Trade Receivables Cash and Cash Equivalents Other Current Financial Assets Lease Liabilities Trade Payables Financial liabilities at fair value through profit or loss: Other Financial Liabilities TOTAL TOTAL Borrowings (Current) Financial liabilities at amortised cost: TOTAL Financial assets at fair value through profit or loss: Investments (Current) Financial assets at amortised cost: Investments (Non-Current) Investments (Non-Current) TOTAL Bank Balances Other than Cash and Cash Equivalents	172.38 - - 83.11 - - 962.93 - - 302.38 - - 34.56 - - 370.67 - -
	1,926.03 - - -
	670.18 670.18 - 0.00 - -
	670.18 670.18 - -
	22.56 - - 107.85 - - 222.46 - - 214.22 - -
	567.07 - - -
	- - -
	- - - -

No financial instruments have been routed through Other Comprehensive Income and hence separate reconciliation disclosure relating to the same is not applicable.

ANNUAL REPORT 2024-25

162

PBM POLYTEX LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025

(Rs. in Lakhs)

44 Financial Risk Management

The company's Board of Directors has overall responsibility for the establishment and oversight of the company's risk management framework. The company's risk management policies are established to identify and analyse the risks faced by the company, to set appropriate risk limits and controls and to monitor risks. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the company's activities.

44.1 Credit Risk Management

Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The carrying amount of following financial assets represents the maximum credit exposure.

Trade Receivables

The Company periodically assesses the financial reliability of customers, taking into account the financial condition, current economic trends and ageing of accounts receivable. Individual risk limits are set accordingly. The Company performs impairment analysis at each reporting date using expected credit loss model. The Company does not hold collateral as security.

Details of single customer accounted for more than 10% of the accounts receivables as at 31st March 2025 and 31st March 2024:

Name of Customer	As at 31/03/2025	As at 31/03/2024
BYC Co. Ltd	-	56.29
HUNARAM PROCESSING PVT LTD(KOLKATA)	159.27	166.57
KOTHARI HOSIERY FACTORY PVT.LTD.	168.14	35.00

Details of single customer accounted for more than 10% of revenue for the year ended at 31st March 2025 and 31st March 2024 :

Name of Customer	2024-25	2023-24
BYC Co. Ltd.	2,218.81	3168.81

The requirement of impairment of trade receivable is analysed as each reporting date. Based on historic default rates and overall credit worthiness of customers, management has made provision for doubtdul debts in respect of outstanding trade receivables as on 31st March, 2025 as below:

Movment in provision of doubtful trade receivable

Movment inprovision of doubtful trade receivable
Particulars	As at 31/03/2025	As at 31/03/2024
OpeningProvision	-	-
Add : Additionalprovision made duringtheyear	11.09	-
Closing Balance	11.09	-

Other Financial Assets

The company has limited credit risk arising from cash and cash equivalents as the balances are maintained with banks with high credit rating. Hence, these are low risk items.

The company evaluates the recoverability of Other financial assets at each reporting date and the same are written off when there is no reasonable expectation of recovery. Where recoveries are made, these are recognised in the Statement of Profit and Loss.

44.2 Liquidity Risk

Liquidity Risk is defined as the risk that the company will not be able to settle or meet its obligations on time or at reasonable price. The company's treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management. Management monitors the company's net liquidity position through rolling forecast on the basis of expected cash flows.

ANNUAL REPORT 2024-25

163

(Rs. in Lakhs)

PBM POLYTEX LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025

Maturity profile of financial liabilities

The table below provides details regarding the remaining contractual maturities of financial liabilities at the reporting date based on contractual undiscounted payments.

contractual undiscounted payments.
Particulars	Borrowings including interest obligations	Trade Payables	Other Financial Liabilities	Total
As at 31st March, 2025
Less than 1year	16.80	364.12	176.10	557.02
1 to 5years	-	-	12.67	12.67
Total	16.80	364.12	188.78	569.70
As at 31st March, 2024
Less than 1year	107.85	222.46	217.95	548.26
1 to 5years	-	-	18.82	18.82
Total	107.85	222.46	236.77	567.08

44.3 Market risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including investments and deposits, foreign currency receivables, payables and loan borrowings.

The Company manages market risk through a treasury department, which evaluates and exercises independent control over the entire process of market risk management. The treasury department recommends risk management objectives and policies, which are approved by Senior Management and the Audit Committee. The activities of this department include management of cash resources, implementing hedging strategies for foreign currency exposures, borrowing strategies, and ensuring compliance with market risk limits and policies.

44.4 Interest rate risk

Interest rate risk is the risk that fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. In order to optimize the company's position with regards to the interest income and interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in it total portfolio.

With all other variables held constant, the following table demonstrates the impact of the borrowing cost on floating rate portion of loans and borrowings and excluding loans on which interest rate swaps are taken.

Nature of Borrowing	Change in basis points	Impact on PAT	Impact on PAT
		2024-25	2023-24
Working Capital Facilities from Bank	(0.50)	0.06	0.40
	0.50	(0.06)	(0.40)

ANNUAL REPORT 2024-25

164

PBM POLYTEX LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025

(Rs. in Lakhs)

44.5 Foreign currency risk

The company operates internationally and is exposed to currency risk on account of its receivables in foreign currency. The functional currency of the company is Indian Rupee. The company uses forward exchange contracts to hedge its currency risk, most with a maturity of less than one year from the reporting date.

The company does not use derivative financial instruments for trading or speculative purposes.

I. Foreign Currency Exposure

I. Foreign Currency Exposure
Particulars	As at 31/03/2025		As at 31/03/2024
	USD	Euro	USD	Euro
Financial Assets
Trade & Other Receivables	1.28	-	2.41	-
Less : Forward Contract for selling foreign currency	(1.28)	-	-2.41	-
Total	-	-	-	-
Financial Liabilities	-	-	-	-
Net Exposure	-	-	-	-

44.6 Price Risk

--> Investment Price Risk

The company's exposure to price risk arises from investments in equity and mutual fund held by the company and classified in the balance sheet at fair value through profit or loss. To manage its price risk arising from investments, the company diversifies its portfolio.

--> Commodity Price Risk

Principal Raw Material for company’s products is cotton. Company sources its raw material requirements from domestic markets. Company effectively manages availability of material as well as price volatility through well planned procurement and inventory strategy and also through appropriate contracts and commitments.

Sensitivity Analysis

The table below summarises the impact of increase/decrease in prices of cotton by Rs. 1 per kg on profit for the period.

Particulars	Impact on PAT	Impact on PAT
	2024-25	2023-24
Rs. 1 decrease inprice of cotton	58.71	60.76
Rs. 1 increase inprice of cotton	(58.71)	(60.76)

ANNUAL REPORT 2024-25

165

PBM POLYTEX LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025

(Rs. in Lakhs)

45 Capital management

For the purposes of the Company’s capital management, capital includes issued capital and all other equity reserves. The primary objective of the Company’s Capital Management is to maximise shareholder value. The company manages its capital structure and makes adjustments in the light of changes in economic environment and the requirement of the financial covenants.

The company monitors capital using gearing ratio, which is net debt divided by total equity plus debt.

Particulars	As at 31/03/2025	As at 31/03/2024
Borrowings	16.80	107.85
Less : Cash & Cash Equivalents	277.49	302.38
Net Debt(A)	-	-
Total Equity	11,451.12	11,812.34
Equityand Net Debt(B)	11,451.12	11,812.34
GearingRatio(A/B)	-	-

46 In terms of Ind AS 36 – Impairment of Assets issued by ICAI, the management has reviewed its fixed assets and arrived at the conclusion that impairment loss which is difference between the carrying amount and recoverable value of assets, was not material and hence no provision is required to be made.

ANNUAL REPORT 2024-25

166

PBM POLYTEX LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025

**47 **	Key Ratios	Key Ratios	Key Ratios	Key Ratios
	Sr. No	Ratio	Amount as on 31st March 2025	Ratio as on 31st March 2025	Amount as on 31st March 2024	Ratio as on 31st March 2024	% Deviation	Reason for variance
	1	Current Ratio
		Current Assets	7,339.86	5.87	8,606.57	3.95	48.66%	Due to decrease in curent liability as compared to previous year
		Current Liabilities	1,250.17		2,179.21
	2	Debt-to-equity Ratio
		Total Borrowing plus Lease Liability	34.42	0.003	130.41	0.01	-72.77%	Due to decrease in working capital facilities as compared to previous year
		Shareholder's Equity	11,451.12		11,812.34
	3	Debt Service Coverage Ratio
		Earnings Available for Debt Servicing	(178.05)		(470.53)	(8.02)	57.63%	Due to decrease in loss as comapred to previous year
		Interest and Lease Payment Installments			58.66
	4	Return on Equity Ratio
		Net Profit After Tax	(443.79)	-3.82%	-64533.07%	-5.23%	27.03%	Current year loss has been decreased as compared to previous year due to favourable market condition.
		Average Shareholder's Equity	11,631.73		1234304.06%
	5	Inventory Turnover Ratio
		Sale of Products	17,266.59	3.34	18,872.58	4.07	-17.79%	N.A.
		Average Inventory	5,164.01		4,639.95
	6	Receivables Turnover Ratio
		Net Sales	17,392.46	14.58	18,879.81	13.77	5.87%	N.A.
		Average Accounts Receivable	1,193.26		1,371.40
	7	Payables Turnover Ratio
		Net Credit Purchasesplus Other Expenses	14,790.31	50.43	19,746.47	67.44	-25.22%	Net credit purchases and other expenses have been reduced stabstantially as compared to previous year
		Average Trade Payables	293.29		292.82
	8	Net Capital Turnover Ratio
		Net Sales	17,392.46	2.86	18,879.81	2.94	-2.77%	N.A.
		WorkingCapital	6,089.69		6,427.37
	9	Net Profit Ratio
		Proift After Tax	(443.79)	-2.55%	(645.33)	-3.42%	25.35%	There has been reduction in loss as compared to previous year
		Net Sales	17,392.46		18,879.81
	10	Return on Capital employed Ratio
		EBIT	(550.43)	-4.73%	-80524.13%	-6.43%	26.41%	Current year loss has been decreased as compared to previous year due to favourable market condition.
		Capital Employed	11,639.16		1252989.28%
	11	Return on investment Ratio
	(a)	Mutual Fund Investments
		Gain on sale/fair valuation of Mutual Fund	144.28	11.13%	13414.53%	6.26%	77.80%	Due to fluctuations in market yeild.
		Average investment in Mutual Funds	1,296.68		214361.67%
	(b)	Fixed Income Investments(FD, Bonds, Debentures & Preference Shares)
		Interest Income + Profit on redemption	1.14	7.75%	79.77%	5.68%	36.46%	Due to increase in interest rate.
		Average investment in Fixed Income investment	14.69		1403.67%

ANNUAL REPORT 2024-25

167

PBM POLYTEX LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025

(Rs. in Lakhs)

48. Ageing of Trade Receivable

48.1 Ageing of Trade Receivables outstanding as at 31/03/2025

48.1 Ageing of Trade Receivables outstanding as at 31/03/2025
Particulars	Outstanding for following periods from due date ofpayment						Total
	Unbilled Revenue/ Not due	Less than 6 months	6 months-1 Years	1-2 Years	2-3 Years	More than 3 Years
Undisputed Trade Receivable-Consideredgood	89.35	1,288.99	0.91	-	-	-	1,379.25
Undisputed trade receivable-Significant increase in credit risk	-	-	-	-	-	-	-
Undisputed Trade Receivable-Credit Impaired	-	-	-	-	-	-	-
Disputed Trade Receivable-Consideredgood	-	-	-	-	55.44	-	55.44
Disputed trade receivable-Significant increase in credit risk	-	-	-	-	-	-	-
Disputed Trade Receivable-Credit Impaired	-	-	-	-	-	-	-
Total	89.35	1,288.99	0.91	-	55.44	-	1,434.69
Less : Provision for doubtful debts							11.09
Net Trade Receivable	89.35	1,288.99	0.91	-	55.44	-	1,423.60

48.1 Ageing of Trade Receivables outstanding as at 31/03/2024

48.1 Ageing of Trade Receivables outstanding as at 31/03/2024
Particulars	Outstanding for following periods from due date ofpayment						Total
	Unbilled Revenue/ Not due	Less than 6 months	6 months-1 Years	1-2 Years	2-3 Years	More than 3 Years
Undisputed Trade Receivable-Consideredgood	-	903.52	2.45	55.92	1.04	-	962.93
Undisputed trade receivable-Significant increase in credit risk	-	-	-	-	-	-	-
Undisputed Trade Receivable-Credit Impaired	-	-	-	-	-	-	-
Disputed Trade Receivable-Consideredgood	-	-	-	-	-	-	-
Disputed trade receivable-Significant increase in credit risk	-	-	-	-	-	-	-
Disputed Trade Receivable-Credit Impaired	-	-	-	-	-	-	-
Total	-	903.52	2.45	55.92	1.04	-	962.93
Less : Provision for doubtful debts	-	-	-	-	-	-	-
Net Trade Receivable	-	903.52	2.45	55.92	1.04	-	962.93

ANNUAL REPORT 2024-25

168

PBM POLYTEX LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025

49.1 Details as required under MSMED Act aregiven below :	(Rs. in Lakhs)	(Rs. in Lakhs)
Particulars	As at 31/03/2025	As at 31/03/2024
	TOTAL	TOTAL
Principal amount due to any supplier registered under MSMED Act and remainingunpaid as at the end of accounting year	13.92	9.14
Interest due to any supplier registered under MSMED Act and remainingunpaid as at the end of accounting year	-	-
Amount of interest paid by the Company in terms of section 16 of the MSMED Act, along with the amount of the payment made to the supplier beyond the appointed dayduringthe accounting year	-	-
Amount of interest due and payable for the reporting period of delay in making payment [which have been paid but beyond the appointed day during the year] but without adding the interest specified under the MSMED Act	-	-
Amount of interest accrued and remaining unpaid at the end of the accounting year.	-	-
Amount of further interest remaining due and payable even in succeeding years, untill such date when the interest dues as above are actually paid to the small enterprise, for the purpose of disallowance as a deductivble expenditure under Section 23 of MSMED Act.	-	-

The above information regarding micro, small and medium enterprises has been determined to the extent such parties have been identified on the basis of information available with the company.

49.2 Ageing of Trade Payables

49.2 Ageing of Trade Payables
Ageing of Trade Payables outstanding as on 31/03/2025	(Rs. in Lakhs)
Particulars	Outstanding for following periods from due date ofpayment					Total
	Not Due	Less Than 1 Year	1-2 Year	2-3 Years	More than 3 Years
MSME	13.91	0.01	-	-	-	13.92
Others	291.78	57.63	0.67	0.12	-	350.20
Disputed dues – MSME	-	-	-	-	-	-
Disputed dues - Others	-	-	-	-	-	-
Total	305.69	57.64	0.67	0.12	-	364.12
Ageing of Trade Payables outstanding as on 31/03/2024	(Rs. in Lakhs)
Particulars	Outstanding for following periods from due date ofpayment					Total
	Not Due	Less Than 1 Year	1-2 Year	2-3 Years	More than 3 Years
MSME	9.14	-	-	-	-	9.14
Others	182.75	30.39	0.17	-	-	213.32
Disputed dues – MSME	-	-	-	-	-	-
Disputed dues - Others	-	-	-	-	-	-
Total	191.89	30.39	0.17	-	-	222.46

ANNUAL REPORT 2024-25

169

PBM POLYTEX LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025

50	Details of associate company	Details of associate company	Details of associate company	(Rs. in Lakhs)	(Rs. in Lakhs)
	Name of Associate Company	Principal Activity	Country of Incorporation	Proportion of Ownership Interest
				As at 31/3/2025	As at 31/3/2024
	Eurotex Industries and Exports Limited	Yarn	India	25.51%	25.51%

51	Summarised financial Information in respect of associate company (Eurotex Industries and Exports Limited) Particulars As at 31/03/2025 As at 31/03/2024 Non-current Assets 1,725.54 3513.74 Current Assets 1506.77 277.78 Non-current Liabilities 1124.89 1250.91 Current Liabilities 4983.32 5186.23 Equity (2,875.90) (2,645.62) Proportion of the Group's ownership 25.51% 25.51% Carrying amount of the Investment - - Particulars 2024-25 2023-24 Total Income 718.61 291.68 Total Expenses 1,012.78 984.37 Loss for theyear before tax (294.17) (692.69) Income Tax Expenses (119.94) (39.26) Loss for theyear (174.23) (653.43) Other Comprehensive Income (56.04) (36.25) Total Comprehensive Income (230.27) (689.68) Group's share ofprofit for theyear - -	Summarised financial Information in respect of associate company (Eurotex Industries and Exports Limited) Particulars As at 31/03/2025 As at 31/03/2024 Non-current Assets 1,725.54 3513.74 Current Assets 1506.77 277.78 Non-current Liabilities 1124.89 1250.91 Current Liabilities 4983.32 5186.23 Equity (2,875.90) (2,645.62) Proportion of the Group's ownership 25.51% 25.51% Carrying amount of the Investment - - Particulars 2024-25 2023-24 Total Income 718.61 291.68 Total Expenses 1,012.78 984.37 Loss for theyear before tax (294.17) (692.69) Income Tax Expenses (119.94) (39.26) Loss for theyear (174.23) (653.43) Other Comprehensive Income (56.04) (36.25) Total Comprehensive Income (230.27) (689.68) Group's share ofprofit for theyear - -	Summarised financial Information in respect of associate company (Eurotex Industries and Exports Limited) Particulars As at 31/03/2025 As at 31/03/2024 Non-current Assets 1,725.54 3513.74 Current Assets 1506.77 277.78 Non-current Liabilities 1124.89 1250.91 Current Liabilities 4983.32 5186.23 Equity (2,875.90) (2,645.62) Proportion of the Group's ownership 25.51% 25.51% Carrying amount of the Investment - - Particulars 2024-25 2023-24 Total Income 718.61 291.68 Total Expenses 1,012.78 984.37 Loss for theyear before tax (294.17) (692.69) Income Tax Expenses (119.94) (39.26) Loss for theyear (174.23) (653.43) Other Comprehensive Income (56.04) (36.25) Total Comprehensive Income (230.27) (689.68) Group's share ofprofit for theyear - -
	Particulars	**As at 31/03/2025 **	As at 31/03/2024
	Non-current Assets	1,725.54	3513.74
	Current Assets	1506.77	277.78
	Non-current Liabilities	1124.89	1250.91
	Current Liabilities	4983.32	5186.23
	Equity	(2,875.90)	(2,645.62)
	Proportion of the Group's ownership	25.51%	25.51%
	Carrying amount of the Investment	-	-
	Particulars	2024-25	2023-24
	Total Income	718.61	291.68
	Total Expenses	1,012.78	984.37
	Loss for theyear before tax	(294.17)	(692.69)
	Income Tax Expenses	(119.94)	(39.26)
	Loss for theyear	(174.23)	(653.43)
	Other Comprehensive Income	(56.04)	(36.25)
	Total Comprehensive Income	(230.27)	(689.68)
	Group's share ofprofit for theyear	-	-

• 52 Additional information, as required under Schedule III to the Companies Act, 2013 of Enterprises Consolidated as Associates

Name of the Company	Net Assets, i.e., total assets minus total liabilities	Share in profit or loss	Share in other comprehensive income	Share in total comprehensive income
	As % of Consolidation Amount	As % of Consolidation Amount	As % of Consolidation Amount	As % of Consolidation Amount
Parent PBM Polytex Limited Associate Eurotex Industries and Exports Limited	100.00% 11,451.11 - -	100.00% (443.79) - -	100.00% 82.56 - -	100.00% (361.23) - -
Total	100.00% 11451.11	100.00% (443.79)	100.00% 82.56	100.00% (361.23)

ANNUAL REPORT 2024-25

170

PBM POLYTEX LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025

(Rs. in Lakhs)

53. Loans granted to Promoters, Directors, KMPs and Related Parties

Details of Loans or Advances in the nature of loans granted to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013,) either severally or jointly with any other person, that are(a) repayable on demand or (b) without specifying any terms or period of repayment :

Type of Borrower	As at 31/03/2025	As at 31/03/2025	As at 31/03/2024	As at 31/03/2024
	Amount of loan or advance in the nature of loan outstanding	Percentage to the total Loans and Advances in the nature of loans	Amount of loan or advance in the nature of loan outstanding	Percentage to the total Loans and Advances in the nature of loans
Promoters	-	0.00%	-	0.00%
Directors	-	0.00%	-	0.00%
KMPs	-	0.00%	-	0.00%
Related Parties	365.89	92.76%	346.65	93.60%

53.1 Disclosures pursuant to Section 186(4) of the Companies Act, 2013 :

Name of the Company	Purpose of Loan	Amount outstanding	Amount outstanding	Maximum Outstanding durng the year	Maximum Outstanding durng the year
		As at 31/03/2025	As at 31/03/2024	2024-25	2023-24
Eurotex Industries and Exports Limited	Working Capital	365.89	346.65	365.89	346.65

54. Borrowing based on security of current assets

Quarter	Name of Bank	Particulars of securities provided	Amount as per books of accounts	Amount as reported in quarterly return/statement	Amount of difference	Reason for material discrepancies
June,2024	State Bank of India/ IDBI Bank	Trade Receivable	1,028.18	1,192.00	(163.82)	Refer Note Below
June,2024		Inventory- Raw Material	2,098.74	2,099.00	(0.26)
June,2024		Inventory- Finished Goods	1,673.63	1,611.00	62.63
June,2024		Inventory- Work in Progress	301.47	301.00	0.47
June,2024		Inventory- Stores and Spares	372.98	129.00	243.98
September,2024		Trade Receivable	886.69	815.00	71.69
September,2024		Inventory- Raw Material	739.67	739.00	0.67
September,2024		Inventory- Finished Goods	2,055.29	1,930.00	125.29
September,2024		Inventory- Work in Progress	311.25	311.00	0.25
September,2024		Inventory- Stores and Spares	154.41	140.00	14.41
December,2024		Trade Receivable	1,172.01	1,334.00	(161.99)
December,2024		Inventory- Raw Material	1,861.63	1,861.63	(0.00)
December,2024		Inventory- Finished Goods	1,832.19	1,532.31	299.88
December,2024		Inventory- Work in Progress	305.44	304.63	0.81
December,2024		Inventory- Stores and Spares	154.86	143.30	11.56
March,2025		Trade Receivable	1,434.69	1,060.00	374.69
March,2025		Inventory- Raw Material	2,972.03	2,973.00	(0.97)
March,2025		Inventory- Finished Goods	1,221.33	884.00	337.33
March,2025		Inventory- Work in Progress	326.01	328.00	(1.99)
March,2025		Inventory- Stores and Spares	187.99	168.00	19.99

Note- 'Reason for material discrepancies'

-The differences in inventories and trade receivables are majorly on account of goods in transit where the goods have been physically dispatched from the Company location however, the same has not been considered as revenue from the purpose of revenue recognition principles and hence reversed from books of accounts for respective quarter ends.

• The management, basis their understanding with banks, submits stock statement of physical stock as available at respective locations at the period end.

• Accordingly adjustment for goods in transit (inward and outward) is not considered for the purpose of filing returns with banks.

• There are other differences on account of regrouping and reclassification of trade receivable balances .

ANNUAL REPORT 2024-25

171

PBM POLYTEX LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025

(Rs. in Lakhs)

55. Other Statutory Information

(a) The Company does not held any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder. Hence any proceeding has not been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

• (b) The Company does not have any transactions with companies struck off.

(c) As on March 31, 2025 there is no unutilised amounts in respect of any issue of securities and long term borrowings from banks and financial institutions. The borrowed funds have been utilised for the specific purpose for which the funds were raised.

(d) The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 ( Such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

(e) The Company has not traded or invested in crypto currency or virtual currency during the financial year.

• (f) The company does not have any charges or satisfaction, which is yet to be registered with ROC beyond the statutory period.

• (g) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

• directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries)

• or

• provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(h) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall: - directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

• provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

56. (a) The company has used accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has been operated throughout the year for all relevant transactions recorded in the software. Further, there are no instances of audit trail being tampered with. Additionally, the audit trail of prior year(s) has been preserved by the Company as per the statutory requirements for record retention.

(b) The associate company has used accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has been operated throughout the year for all relevant transactions recorded in the software except that audit trail feature is not enabled to trace information contained in certain statements or reports back to the original input source. Additionally, it is in compliance with the preservation of audit trail as per the statutory requirements for record retention.

57 . In respect of Eurotex Industries & Exports Limited (associate company)

The Board of Directors in their meeting held on 26th March, 2022, has decided for closure of its manufacturing plants situated at Kolhapur under Industrial Disputes Act, 1947, due to continuous grinding halt of operations of plants at Kolhapur since 25th March, 2019 arising out of persistent, unfair and illegal activities of labour including severe inter-union rivalry and disconnection of power. The Notice of Closure of the manufacturing plants at Kolhapur has been displayed on 30th March, 2022 at the main gate of the Plants and a copy of said Notice has been sent to concerned workers and authorities. The matter in respect of labour dues for lay off of workers which was subjudice, has been disposed off by the Hon’ble Supreme Court mentioning that the remedy has to be sought in the Hon’ble High court. Accordingly, the Company has filed a writ petition before Hon’ble High Court, Mumbai. In view of expert legal advice taken in the matter, the Company expects a favourable decision. The management has settled all the dues of lender banks and the Company is planning to undertake the further development of available land area at Kolhapur in near future. In view of such positivities, the financial statements have been prepared on a going concern basis.

58. Previous year's figures have been re-grouped/re-arranged/re-casted, wherever necessary, so as to make them comparable with current year's figures. The management believes that such reclassification does not have any material impact on the information presented in the financial statements.

ANNUAL REPORT 2024-25

172

PBM POLYTEX LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31ST MARCH, 2025

(Rs. in Lakhs)

59. Events occuring after reporting period

The Company evaluated subsequent events through May 28, 2025, the date financial statements were available for issuance and determined that there were no additional material subsequent events requiring disclosure.

As per our attached Report of even Date

For, Mahendra N Shah & Co.

For and behalf of the Board of Directors ofBoard of Directors of PBM Polytex LimitedPBM Polytex Limited

Chartered Accountants FRN : 105775W

Shri Gopal Patodia, Managing Director (DIN: 00014247)

Shri Mohan Kumar Patodia, Managing Director cum CFO (DIN: 00035381)

Shri Ashok Pandit, Independent Director (DIN: 08132980)

CA Chirag M Shah Partner Membership No: 45706

Partner Shri Amit Patodia, CEO Membership No: 45706 Swati Billore Shri Sunil Somani, Finance Controller Place: Ahmedabad Company Secreary Place: Vadodara Date: 28th May, 2025 (M. No. F8321) Date: 28th May, 2025

ANNUAL REPORT 2024-25

173

PBM POLYTEX LTD. CIN: L17110GJ1919PLC000495 OPP. RAILWAY STATION, POST: PETLAD DIST: ANAND, GUJARAT- – 388450 Email ID: pbm@patodiagroup.com Website: www.pbmpolytex.com,