Nitin-Spinner AR 2020 PDF

Enduring
Commitment
Towards Excellence
Annual Report
2020-21
As You Glance Down
Corporate Overview 01-21
Excellence that Comes with Commitment 01
Committed to Excel 02
Products That Spell Excellence 04
Our Enduring Footprint Across the Globe 06
Our Excellence Drivers 08
Chairman’s Message 10
Business Model 12
Research & Development: Striving for Excellence 14
Infrastructure: Committed Towards Growth 16
Going Beyond Business to Achieve Excellence 18
Governance: Committed to Deliver 20
Corporate Information 21
Statutory Reports 22-64

Board’s Report 22
Business Responsibility Report 33
Management Discussion and Analysis 47
Corporate Governance 52
Financial Statements 65-112

Independent Auditors’ Report 65
Balance Sheet 74
Statement of Profit & Loss 75
Cash Flow Statement 76
Statement of Changes in Equity 77
Notes to the Financial Statements 78
An electronic version of this report is available online at:

https://nitinspinners.com/investor-relation/annual-reports/
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Cautionary Statement Regarding Forward-Looking Statement

Certain statements in this release concerning our future growth prospects are forward-looking statements, which involve a number of risks
and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties
relating to these statements include, but are not limited to risks and uncertainties regarding fluctuations in earnings, our ability to manage
growth, intense competition in IT business, including those factors which may affect our cost advantage, wage increases in India, our ability
to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration,
restrictions on immigration, our ability to manage our international operations, reduced demand for technology in our key focus areas,
disruptions in telecommunication networks, our ability to successfully complete and integrate potential acquisitions, liability for damages on
our service contracts, withdrawal of governmental fiscal incentives, political instability, and unauthorised use of our intellectual property and
general economic conditions affecting our industry. From time to time, Nitin Spinners may make additional written and oral forward-looking
statements, including statements contained in our reports to shareholders. The Company does not undertake to update any forward-looking
statement that may be made from time to time by or on behalf of the Company.
Excellence that Comes
with Commitment
Two decades and counting, Nitin Spinners Limited (‘Nitin Spinners’ or ‘the Company’)
has marked a new epoch in the textile industry curated through excellence in quality
and committed delivery and services. The Company’s glorious legacy helps it deliver
lasting excellence, in a way creating a niche for its customers.
The strong dedication and commitment towards its customers globally have led
the Company to achieve the highest turnover and profit during the year despite the
unexpected turn of events, making 2020-21 a landmark year for the Company. It is
now set to embark on a new journey with optimising capacity utilisation, increased
value addition, diversified product portfolio to cater to a diverse set of customers.
Highlights of 2020-21
` 1,624 Crores +13%

Annual Revenue
` 257 Crores +52%

Earnings Before Interest, Taxes,
Depreciation, and Amortisation
` 12.25 Per Share +189%

Earning Per Share
` 69 Crores +189%
Profit After Tax
Investor information
CIN : L17111RJ1992PLC006987
BSE Code : 532698
NSE Symbol : NITINSPIN
Bloomberg Code : NSPL:IN
AGM Date : 16th September, 2021
AGM Mode : Virtual Meeting
Committed to Excel
Incorporated in 1992, Nitin Spinners Limited has
positioned itself as one of the leading manufacturers
of cotton yarn, blended yarn, knitted fabrics, and
finished woven fabrics. It continues to invest in the latest
technologies backed by its robust distribution network
and a strong focus on R&D, Quality and Service. It has
thus created an irreplicable value for its clients in India
and abroad.
Established in Bhilwara, Rajasthan, the Company is

equipped with state-of-the-art technology from leading
European and other global suppliers. It is connected to
India’s major cities, giving easy access to procure raw
materials. The Company also installed a composite textile
project at Begun, Chittorgarh, in Rajasthan to manufacture
cotton, blended yarns, and grey & finished woven fabrics.
It is certified with ISO 9001:2015, ISO 14000,

and ISO 50001 Management certifications and
OSHAS certification for occupational safety
and SA 8000 for social accountability. It is also
certifed with GOTS standard for Organic cotton,
GRS for use of sustainable Fibres and also for
use of Supima and Giza Cotton
Achieved sales of 22.8

million meters of woven
fabric, contributing to
15% revenue
Snapshot
Established of the Achieved
new products: year highest-ever
blended yarns turnover and
and finished profits
woven fabrics
2 Annual Report 2020-21

Corporate Overview
Statutory Reports
Financial Statements
28 Years ` 1,624 Crores ` 69 Crores
of inception Total revenue PAT
50+ 3,00,048 3,488

Present in countries Total spindles installed Total rotors installed
across the globe
5,000+ 168
Employee strength Total air-jet weaving machines
installed along with dyeing,
finishing and printing facilities
Become an integrated textiles manufacturer by forward and vertical integration

Our Vision Remain at the forefront in high-quality textile products manufacturing
Create value for shareholders and allied industries
Increase foreign exchange earnings by being the preferred international supplier
Stay effective and proactive in developing new markets and products
Endeavour for the ultimate satisfaction of our allied partners with:
« The Right Technology
« The Right Raw Material
« The Right People, and above all The Right Attitude
To be the most reliable supplier across the textile value chain

Our Mission To provide superior quality products at competitive prices and establish a brand value in the
international arena
To exceed industry standards with exceptional customer and technical service
To maintain our competitive strategic position through leading-edge technology
To provide a safe, fulfilling, and rewarding work environment for employees
To promote partnerships with Government agencies and institutions of international recognition
To provide training to our employees for their future development
Nitin Spinners Limited 3

Products That Spell
Excellence
Yarn
100% cotton and blended ring-spun combed

and carded yarns
Open-end yarns
Compact yarns
Slub yarns
Core spun yarns
Multifold yarns
Yarns made from Supima, Giza
Yarns made from Organic & BCI Cotton
Yarns made from Recycled fibres
Count range 6 to 100s
Knitted Fabric
Single Jersey
Open width with Elastene
3 t fleece
Interlock
Rib
Woven Fabrics
100% cotton & cotton blends in piece dyed

Yarn-dyed variations in different weaves
Finishes, including special finishes and
Stretch Fabrics

Corporate Overview
Statutory Reports
Woven Apparel Knitted Apparel Furnishing Fabrics
Denims Terry Towel Medical Fabrics
Tea Bags Bed Linen
End
usage
Inner Wear Comfort Wear Masks
Sports Wear Winter Wear Baby Wear
Fashion and Uniform Industrial and

Image Wear Protective Wear
Health Care Hotel Apparel Defence Wear

Apparel

Our Enduring Footprint
Across the Globe
50
20
16
33
10
14
35 6
34
8
1,000
Crossed ` crore turnover from exports
Highlights of
the year 63%
Exporting more than of turnover to over 50 countries
value-added
Developing successfully and
sustainable products
This map is a generalised illustration only for the ease of the reader to understand the locations, and it is not intended to be used for reference purposes. The
representation of political boundaries and the names of geographical features/states do not necessarily reflect the actual position. The Company or any of its directors,
officers or employees, cannot be held responsible for any misuse or misinterpretation of any information or design thereof. The Company does not warrant or represent
any kind in connection to its accuracy or completeness.

Corporate Overview
Statutory Reports
38
17
13 28 27
49 32
4 36
19 12
2
18 43
24 5
37 42
11 47 26
25
46
23
9
15
48 3 44
21
45
51
41
29
39
22
31
30
40
1. Argentina 12. Czech 23. Israel 34. Paraguay 45. Thailand

2. Austria 13. Denmark 24. Italy 35. Peru 46. Tunisia
3. Bangladesh 14. Ecuador 25. Japan 36. Poland 47. Turkey
4. Belgium 15. Egypt 26. Korea 37. Portugal 48. U.A.E
5. Bulgaria 16. El Salvador 27. Latvia 38. Russia 49. UK
6. Brazil 17. Estonia 28. Lithuania 39. Singapore 50. USA
7. Canada 18. France 29. Malaysia 40. South Africa 51. Vietnam
8. Chile 19. Germany 30. Mauritius 41. Sri Lanka
9. China 20. Guatemala 31. Madagaskar 42. Spain
10. Colombia 21. Hong Kong 32. Netherland 43. Switzerland
11. Croatia 22. Indonesia 33. Panama 44. Taiwan

Our Excellence Drivers
Nitin Spinners has been a market pioneer and a globally recognised textile manufacturer brand for over two decades. The
Company has strategically created a competitive portfolio of the most delicate quality – yarn, knitted fabrics, and finished
woven fabrics, which has helped it serve diversified and leading clientele from across the globe. The core values of the
Company [Quality, Reliabilty and Cutomer Satisfaction] are integral to its business. It has also been certified globally, adding
to its quality assurance and excellent business model.
Cutting-edge manufacturing facilities

The Company has achieved higher productivity even in crucial times like the ongoing Covid-19 pandemic. This was possible
through advanced technology backed by continuous investments in R&D.
Strategic location
The Company enjoys logistics and cost advantages, as its domestic manufacturing plants are located in
the cotton-growing region.
Reliable customer base

The Company provides a diversified portfolio of products, matched with its
unparalleled quality standards and best-in-class after-sale services. This sides in
the favour of diversified international clients.

Corporate Overview
Statutory Reports
Focus on sustainable products and processes

The Company is increasingly offering products made from Sustainable fibres like Organic and BCI cotton, Recyled fibres.
It is also promoting use of green power and also ensures zero liquid discharge for environment protection.
Exceptional innovation track record

The Company’s R&D department is well equipped and continuously engaged in development of
new products, process improvements and also developing products based on specific customer
requirements. The Company state-of-the-art fabric design studio and pilot plants help it to develop
wide range of innovative designs according to fashion requirements and also match exact colours
as per customers’ samples.
Highly qualified promoters and management team

The Company has enabled a robust business model with the help of the vast
professional promoters and key executives. The well-versed and powerful
management only adds more strength to the team.

Chairman’s Message
We at Nitin Spinners are
geared up for the upcoming year
with all positivity in light of the
unprecedented time. With our
differentiated strategy, marked
by innovation and sustainable
practices, we will strive to
maintain our top-line growth
momentum by optimising capacity
utilisation and thrust on value-
added products
Dear Shareholders, I am happy to announce that the Board of Directors have

recommended a dividend of ` 1.50 per Equity Share.
I am pleased to share with you, the glimpses of the year
Our financial metrics are the indicator of our resilience and
gone by. When we stepped into 2020, very few had
growth. Our strong product portfolio has helped us boost
foreseen the profound challenges that the world and we
our business growth and deepen our connection with the
would face in the months to follow. After Covid-19 triggered
consumers across markets and operational categories.
a healthcare catastrophe and a colossal economic
Optimum utilisation of capacities and cost efficienices also
disruption around the globe, today, when we look back, we
helped to achieve these results.
are amazed by the agility and the effectiveness with which
we navigated the crisis, despite all the challenges of lock
Export Award
downs, restrictions on travel, and running the operations
while ensuring the safety of the workforce. I am delighted to share with you that the Company has been
conferred with the following prestigious Texprocil Awards
We are proud to present you, the Annual Report of
2020-21 with the remarkable topline growth of 13% and
TEXPROCIL Silver Trophy for the second highest export
bottomline growth of 189%, witnessed in the time of a performance in Cotton Yarn - Counts 50s & below under
global pandemic. In the course of the year, we have, Category III for the year 2019-20
maintained steady growth in all our segments and have
TEXPROCIL Gold Trophy for the highest export
achieved highest ever turnover and profits of ` 1,624 performance in Cotton Yarn - Counts 51s & above under
Crores and ` 69 Crores, respectively. Category I for the year 2019-20

Corporate Overview
Statutory Reports
Thriving Together in New Normal

Our cutting-edge manufacturing facilities and strong focus
on R&D, help us constantly innovate our products. This
assists us in meeting the demands of the ever-burgeoning
consumer base worldwide. We are aligned to evolve our
brand portfolio into different value-adding products to fuel
the growth and keep us in accordance with our vision and
mission.
Our new composite textile project to manufacture Cotton

and Blended yarns and Grey & Finished Woven Fabrics has
been firmly established in terms of quality, productivity and
acceptance of products. The infrastructure helped us expand
our presence into the value-adding products. Our Finished
Woven Fabrics are supplied to well-known domestic and
international brands globally.
Sustainable, Environment Friendly and

Response to Covid-19
The world is currently going through a significant crisis, and
we at Nitin understand our responsibility and duty towards
our employees and the society. We have established
multiple Covid centres on the Company campus, providing
quarantine facilities to the people affected. Proper tracking
of health parameters is of utmost priority, and we follow
it unfailingly. In addition, we constantly extend our help
towards the local administrations for the people reeling
under the virus and vaccination drive.
We look forward to enhance value-added products in our
Our operations are rooted in sustainability and mandating
portfolio and continue to yield higher profitability. We will
optimal utilisation of resources to conserve the environment.
focus on debottlenecking our existing manufacturing facilities
We have several practices in place which help us create a
to increase the production base. At the same time, we will
harmonious balance with the planet. We are increasing the
continue to offer innovative and value-added products and
use of sustainable fibres in our product range, promoting the
explore newer markets across the geographies.
use of green energy and ensure a zero liquid discharge.
As a part of community development, we are constantly Gratitude to All

creating employment opportunities and conducting several
I express my sincere gratitude to our Shareholders, Bankers,
awareness drives in the areas of cleanliness, social issues,
Customers, Suppliers, State and Central Governments, Board
and education.
of Directors, and Committed Employees, who stood by us in
these trying times. We hope to emerge out of the ongoing
Way Forward situation better than ever. I hope and pray for the well-being
We at Nitin Spinners are geared up for the upcoming year and prosperity of all.
with all positivity in light of this unprecedented time. With Regards,
our differentiated strategy, marked by innovation and
sustainable practices, we will strive to maintain our top- R.L. Nolkha
line growth momentum by optimising capacity utilisation. Chairman

Business Model
We transform resources through our business activities and generate output in the form of
innovative products. Our focus is always on leveraging our size, scale and expertise, for
generating significant and meaningful value for all our stakeholders.
Our Inputs
How we create value
Financial Resources
across integrated business
Prudent financial management and strong balance sheet position product portfolio
Manufacturing Resources
68%
Yarn
Fully integrated operations from Yarn to Finished Fabrics with the
Latest Technology from globally renowned suppliers.
15%
Woven Fabrics
Intellectual Resources
Robust investment in R&D, helped in innovating new value- 11%
added products Knitted Fabrics
State-of-the-art innovation centres
Quality control labs installed for each process of production
All quality certifications received as per international standards
Certified by OEKOTex, Global Organic Textile Standard (GOTS),
06%
Others
which prescribes standards for the processing of fibres from
certified organic agriculture and GRS for use of recycled fibres
Revenue from Operations (` in Crores)
Human Resources FY21 1,624

Skilled, passionate and experienced 5,000+ workforce
FY20 1,438
Regular training and development programmes
GR
Safe and healthy work environment FY19 1,243

CA
Engaging working culture

5%
FY18
+1
1,145
Steered by highly experienced and skilled promoter and
management team FY17 933
Social and CSR Resources

Average ROCE (%)
Installation of energy-efficient equipment. Zero liquid discharge
system and Sewage Treatment Plant FY21 11.0%
Promoting education among special children, construction of rooms
FY20 6.3%
in schools
Rural development activity by construction of drainage system FY19 11.4%
Installation of solar rooftop system in hostel building
Contribution for Cotton Development and Research activities FY18 12.0%
FY17 13.4%

Corporate Overview
Statutory Reports
Integrated operations – Fibre to Strong clientele throughout domestic and

Finished goods international markets
Best-in-class technology and state-of-the-art Steadily expanding asset portfolio by

machineries resulting in cost efficiency and adding infrastructure to focus on value-
faster turn-around time added products
Growing contribution of value-added Key driving Optimisation of raw material procurement

products, while focusing on the core force considering global and local perspective
Effectively positioning ourselves to

Constantly fortifying global presence, while
benefit from the government policies to
connecting deeply with the Indian brands
maximise ROE
Supported by
Strong Prudent risk Effective and hybrid Stakeholder Environment

governance management product portfolio engagement sustainability
Outcomes
EBITDA (` in Crores) PAT (` in Crores)
FY21 257 FY21 69
FY20 170 FY20 24

GR
FY19 178 FY19 64

CA
8%
FY18 155 FY18 52

+1
FY17 133 FY17 57
Average ROE (%) Net Worth (` in Crores)
FY21 13.0% FY21 563
FY20 4.9% FY20 494

GR
FY19 14.3% FY19 483

CA
%
FY18 15.5% FY18 417

2
+2
FY17 24.8% FY17 256

Research & Development:
Striving for Excellence
Reserach & Development is the foundation
as well as the guiding principle of Nitin
Spinners. The Company makes considerable
investments in R&D and constantly tracks
the ever-emerging market trends to stay up-
to-date. This helps the Company provide
superior quality to the consumers. All yarn and
fabric produced go through layers of tests
before getting added to the product portfolio.
The in-house observation team analyses
the quality of the raw material in depth for
processing it into the optimum product.
Interacting with consumers is an ongoing process, helping the Company

understand the market-specific needs and develop new products accordingly.
It has specially installed a state-of-the-art design studio to create fabric samples
suiting the current fashion requirements. Steered by innovation and strong
customer focus, the team constantly aims to develop new-age products, leading
to value creation for both global and domestic client bases.
To meet the growing demand and offer exact colour samples, the Company has
installed a pilot plant, a spectrophotometer, and a colour computer. It benefits
the Company to offer an endless variety of colour samples to its customers.
The final output is then tested at every stage during production process
at its well-equipped Quality Control lab to cross-check the quality as per
internationally accepted norms. This ensures that this product is of superior
quality. This advanced technology and prime focus on customers have made
the Company one of the finest yarn and fabric manufacturers.

Corporate Overview
Statutory Reports

Infrastructure: Committed
Towards Growth
Quality, reliability, and customer satisfaction form the core of sources. Further, to enhance and diversify the product
value of Nitin Spinners. The Company achieves this through portfolio, the Company has recently installed a composite
its strategically located state-of-the-art manufacturing base, textile project at Begun, in district Chittorgarh (Rajasthan),
uniquely positioned in the proximity of cotton growing areas to manufacture cotton and blended yarns and grey and
and ports. It helps in a quick delivery turnaround time to the finished woven fabrics. It will also help the Company cater
clients. The environment-friendly, globally certified plants to all the fabric sourcing needs of the apparel manufacturers.
are designed for farm-to-finish production across the diverse
Given that power is a significant input in the business, all
product range.
the plants have multiple captive solar power generators
The Company actively invests in the upgrade of machinery installed. It is also equipped with zero-discharge facilities,
and equipment at its manufacturing base. It helps to cater helping it recycle and upcycle its waste, thereby ensuring
to the ever-growing demand of the industry and helps in sustainability. It also aids in minimising its energy cost.
providing single-point solutions through the hybrid product
All the operative units are globally certified, a
portfolio.
testimonial to the Company’s high-quality production.
To maintain the ever burgeoning product range, the The Company believes in carrying out quality tests as a
Company has installed a capacity of 3,00,048 spindles, continuous process. Each batch of raw material sourced
3,488 rotors, 63 knitting machines, 168 woven fabrics is tested on required parameters before going into the
looms, and a capacity to produce 30 million meters of production process. Through vertically integrated in-house
finished fabrics. With adequate resources, the Company facilities, it monitors all the functions. It helps in serving
has achieved higher productivity and efficient utilisation end-consumer needs.

Corporate Overview
Statutory Reports
Production and Sales of the Company’s products:
Production Production
Yarn (MT) Sales Knitted Fabrics (MT) Sales
63,973 7,375
FY21 FY21
48,180 7,165
61,315 6,310
FY20 FY20
48,817 6,312
49,216 6,996
FY19 FY19
41,689 6,941
47,138 7,526
FY18 FY18
40,219 7,546
Woven & Finished Fabric (Mn Mtrs) Woven Fabric Production (Greige)
Finished Fabric Production
23.48
Woven Fabric Sales (Greige & Finished)
FY21 14.30
22.80
19.70
FY20 2.63
15.97

Going Beyond Business to
Achieve Excellence
LIQUID
DISCHARGE
SYSTEM
Environment and Industrial Safety

Nitin Spinners is committed to continuously improve its also installed sewage treatment plant to conserve water. The
environmental management system through effective value of environmental conservation is deeply ingrained in
supervision of its products, activities and services the Company’s core thought process and all its members.
associated with its manufacturing operations. The Company It continuously ensures that all its operations abide by the
believes in creating a harmonious environmentally industrial requirements for environment protection and
compliant enterprise that aims use of recycled and conservation of natural resources to the extent possible.
sustainable fibres for recycling/upcycling of its waste.
The Company is also accredited with OHSAS18001:2007
The Company has adopted a Zero Liquid Discharge (Occupational Health and Safety Management System)
system, wherein it makes sure there is no liquid disposal certification from the British Standards India (BSI).
helping it create an awareness on water pollution. It has

Corporate Overview
Statutory Reports
Social
The Company is committed to delivering impactful community at large. It continues to work dedicatedly
value that goes beyond business. It constantly seeks to towards addressing the deep-rooted aspirations of the
strengthen its initiatives to create a sustainable value for the communities.
During the year, the Company undertook various

initiatives that impacted the lives of the community
at large, including:
Construction of women’s hostel in Bhilwara Installation of solar rooftop system
Promoting education among special children, Construction of toilets as a part of Swachh

construction of rooms in schools Bharat Abhiyan
Contribution towards Covid-19 relief Rural development by drainage construction
Contribution for cotton development Installation of energy-efficient equipment. Zero

and research liquid discharge system and sewage treatment plant
Ensure inclusive, equitable quality

education and promote lifelong
learning opportunities for all
Ensure healthy lives and promote
well-being for all
Ensure access to
affordable, reliable,
sustainable and
modern energy for all
Our Enduring
Achieve gender equality
Commitment Towards
and empower all women SDG
and girls The Company contributes towards Take urgent action
Sustainable Development Goals to combat climate
(SDG) that has been adopted by all change and its
UN Member States in 2015, as a part impacts
of the 2030 Agenda for Sustainable
Development. These are our
sustainable goals:
Promote sustained, inclusive and
sustainable economic growth, full Build resilient infrastructure,
and productive employment promote inclusive and
and decent work environment for all sustainable industrialisation and
foster innovation

Governance:
Committed to Deliver
Shri Dinesh Nolkha

Shri R.L. Nolkha Shri Y.R. Shah
Managing Director
Chairman Independent Director
Smt. Aditi Mehta Shri Nitin Nolakha Dr. R. Chattopadhyay

Independent Director Joint Managing Director Independent Director

Corporate Overview
Statutory Reports
Corporate Information
BOARD OF DIRECTORS BANKERS
SHRI R.L. NOLKHA Punjab National Bank
Chairman State Bank of India
Bank of Baroda
SHRI Y.R. SHAH
Union Bank of India
Independent Director
SHRI DINESH NOLKHA AUDITORS

Managing Director
M/S. KALANI & CO.
SMT. ADITI MEHTA Chartered Accountants
SHRI NITIN NOLAKHA

SECRETARIAL AUDITOR
Joint Managing Director M/S V. M. ASSOCIATES
Company Secretaries
DR. R. CHATTOPADHYAY
COST AUDITORS
KEY EXECUTIVES VIVEK LADHA & ASSOCIATES
SHRI SANDEEP GARG Cost Accountants
President (Operations)
REGISTERED OFFICE
SHRI P. MAHESHWARI
Chief Financial Officer 16-17 Km. Stone, Chittor Road, Hamirgarh,
Bhilwara - 311025 (Rajasthan)
SHRI UMESH TOSHNIWAL
CIN: L17111RJ1992PLC006987
Vice President (Marketing)
Telephone: 01482 - 286110 - 113
SHRI K. L. PAREEK Fax: 01482-286117
Vice President (HR) Email: [email protected]
Website: www.nitinspinners.com
SHRI ANIL JAIN
Vice President (Commercial) Works
SHRI SUDHIR GARG 1. 16-17 Km. Stone, Chittor Road, Hamirgarh,
Company Secretary and GM (Legal) Distt Bhilwara - 311025 (Rajasthan)
2. Chittor - Kota N.H. 27, Village Bhanwaria kalan,

Tehsil - Begun Distt Chittorgarh - 312023
(Rajasthan)

BOARD’S REPORT
To
The Members
Your Directors have pleasure to present the 29th Annual Report on the business and operations of your Company along with the
Audited Financial Statements for the year ended 31st March, 2021.
FINANCIAL RESULTS
The Financial Results of the Company’s performance for the year under review and those of the previous year are as follows: -
(` in Crores)
Particulars Current Year Previous Year

2020-21 2019-20
Revenue From Operations 1624.41 1438.06
Gross Profit Before Finance Cost, Depreciation & Exceptional item 259.16 171.90
Finance Cost 61.61 55.56
Profit before Depreciation, Exceptional items and Tax 197.55 116.34
Depreciation 91.03 80.69
Exceptional items - -
Profit before Taxation 106.52 35.65
Provision for Taxation - Current Tax (Net of MAT Credit) - -
- Earlier Year - (0.44)
- Deferred Tax 37.65 12.27
Profit after Tax 68.87 23.82
Other Comprehensive Income/(Loss) net of Income Tax 3.82 (3.85)
Total Comprehensive Income for the period 72.69 19.97
OPERATIONAL PERFORMANCE PROFITABILITY

REVENUE FROM OPERATIONS The Company has registered significant increase in Operating
In spite of challenges posed by COVID-19 pandemic, your Profit (EBIDTA) as it has increased from ` 171.90 Crores in the
Company has registered highest ever Revenue and Profit. previous year to ` 259.16 Crores in current year. As percentage
The Revenue from Operations during the year under review to revenue from operations the Operating Profits (EBIDTA)
is ` 1624.41 Crores against ` 1438.06 Crores in the previous increased from 11.95% in previous year to 15.95% in current
year, registering an increase of 12.96%. The revenue of Yarn year. The Company has reported Net Profit of ` 68.87 Crores
increased by 3.86% during current year from ` 1054.51 Crores in the current year against ` 23.82 Crores in the previous year.
to ` 1095.23 Crores. The revenue from Yarn constitutes DIVIDEND
67.42% of the total revenue. Revenue of Fabric has increased
Your Directors are pleased to recommend Dividend of 15% i.e.
from ` 277.84 Crores in the previous year to ` 423.71 Crores
` 1.50 per Equity Shares on the fully paid-up Equity Share of
during year under review and registered growth of 52.50%.
` 10/- each for the financial year 2020-21 subject to approval
The Fabric revenue constitutes 26.09% of the total revenue
of shareholders at the ensuing Annual General Meeting.
from operations.
No interim dividend declared during the reporting period.
EXPORTS If the dividend, as recommended above, is declared by the
Exports registered remarkable increase of 29.80% as it Shareholders at the ensuing Annual General Meeting (‘AGM’),
has increased to ` 1016.57 Crores in the current year from the total outflow towards dividend on Equity Shares for the
` 783.17 Crores in the previous year. Exports constituted year would be ` 8.43 Crores.
62.58% of the total revenue during the year. The Company’s TRANSFER TO RESERVES
focus of increasing export of value added products resulted
The Board of Directors has decided to retain the entire amount
in significant growth of 92% in Fabrics Exports which has
of profits for 2020-21 in the profit and loss account.
increased to ` 126.89 Crores during this year from ` 65.97
Crores in the last year.

Corporate Overview
Statutory Reports
BOARD’S REPORT (Contd.)
COMBATING COVID-19 No other changes have taken place in composition of Board

With the wholehearted support from all our employees, of Directors and Key Managerial Personnel of the Company
suppliers and channel partners, we managed to serve our during the year under review.
domestic as well as international customers and ensured All the Independent Directors have given declaration and
growth in our business. Measures on continuous engagement confirmation of their independence and inclusion of their
with our employees facilitated us in safeguarding our workforce names in Independent Director’s data bank maintained with
and their family members from the Covid-19 impact. We, at the the Indian Institute of Corporate Affairs (‘IICA’) in terms of
Board level, are very appreciative of the support offered by Section 150 of the Act read with Rule 6 of the Companies
the team and their family members. Without their commitment (Appointment & Qualification of Directors) Rules, 2014, as
and support, we would not have been able to successfully amended. They are exempt from the requirement to undertake
adapt to the newer ways of working during the year. We are the online proficiency self-assessment test conducted by IICA.
intensifying our efforts in managing the Covid-19 situation in
All the Directors, Key Managerial Personnel and Senior
view of the intensity of the ongoing second wave. We are
Managerial Personnel have confirmed compliance of “Code
cautious and yet hopeful, that our efforts in this direction will
of Conduct for Directors and Senior Management Personnel”.
help us in managing the safety of all our relevant stakeholders
A declaration by the Managing Director in this regard is
and serve our customers with limited disruption.
enclosed to this Report.
CORPORATE SOCIAL RESPONSIBILTY (CSR)
Your Company is committed to make a positive contribution AUDITORS :-
to communities where it operates. Pursuant to Section 135 STATUTORY AUDITORS
of the Companies Act, 2013, the Company constituted CSR M/s Kalani & Co., Chartered Accountants (FRN 000722C)
committee and formulated CSR Policy as guiding principle were appointed Statutory Auditors at the 25th Annual General
for undertaking CSR activities. The Company’s vision on CSR Meeting held on 4th September, 2017 for five years till the
is that the Company being a responsible Corporate Citizen conclusion of 30th Annual General Meeting to be held in
would continue to make a serious endeavor for improvement the calendar year 2022. Accordingly, they have conducted
in quality of life and betterment of society through its CSR Statutory Audit for the 2020-21 and shall continue to be
related initiatives. Statutory Auditors for the Financial Year 2021-22. They have
During the current year, the Company has incurred expenditure confirmed their eligibility to continue as Statutory Auditors
of ` 143.16 Lacs on CSR activities against obligation of ` of the Company for the 2021-22 under section 141 of the
136.25 Lacs. The disclosures of CSR activities pursuant to Companies Act, 2013 and rules framed there under.
Section 134(3) of the Companies Act, 2013 read with Rule 8 The Audit Report on the Financial Statements for the Financial
of Companies (Corporate Social Responsibility Policy) Rules, Year ended on 31st March, 2021, issued by M/s Kalani & Co.,
2014 is annexed as Annexure – I hereto and form part of this Chartered Accountants, do not contain any qualifications,
report. reservations or adverse remarks. The information referred in
DIRECTORS AND KEY MANAGERIAL PERSONNEL Auditor’s Report are self explanatory and hence do not require
Shri Ratan Lal Nolkha, Director of the Company who retired any further clarification.
and being eligible, was re-appointed at the Annual General SECRETARIAL AUDITORS
Meeting of the Company held on 16th September, 2020. The Board of Directors has appointed M/s. V. M & Associates,
Shri Nitin Nolakha, Director of the Company retires by rotation Company Secretaries (Firm Registration No. P1984RJ039200),
at the ensuing Annual General Meeting and being eligible, to conduct Secretarial Audit for the Financial Year 2020-21
offer himself for re-appointment. The Board recommends his under the provisions of Section 204 of the Companies Act,
re-appointment for consideration of members of the Company 2013. Accordingly, they have conducted Secretarial Audit for
at the ensuing Annual General Meeting. the Financial Year 2020-21 and Secretarial Audit Report in
Form MR-3 is enclosed herewith. The report does not contain
Tenure of Shri Ratan Lal Nolkha, Executive Chairman and
any qualification, reservation or adverse remark.
Shri Nitin Nolakha, Joint Managing Director is expiring on
31st August, 2021 and 30th September, 2021 respectively. The Board of Directors has re-appointed M/s V. M. &
Based on performance evaluation and the recommendation Associates, Company Secretaries (Firm Registration No.
of the Nomination and Remuneration Committee, the Board P1984RJ039200), being eligible, to conduct Secretarial Audit
recommends their re-appointment for another term of three for the Financial Year 2021-22 under the provisions of Section
years. 204 of the Companies Act, 2013.

COST RECORDS AND COST AUDITORS work force constitutes the primary source of sustainable
The Company is required to maintain cost records as specified competitive advantage. Accordingly, human resource
by the Central Government as per Section 148(1) of the Act and development received focused attention. The Company has
the rules framed there under, and accordingly, the Company in house skill training centre and imparts on the job training to
has made and maintained such cost accounts and records. its manpower on continuous basis.
The Board of Directors has appointed M/s. Vivek Laddha & Your Directors wish to place on record their appreciation for
Associates, Cost Accountants (FRN 103465) to conduct Cost the dedicated services rendered by the work force during the
Audit of the Cost Records maintained by the Company for the year under review.
Financial Year 2020-21. Accordingly, they have conducted ENERGY CONSERVATION, TECHNOLOGY ABSORPTION
Cost Audit for the 2020-21 and their report does not contain
AND FOREIGN EXCHANGE EARNINGS AND OUTGO
any qualification, reservation or adverse remark.
Your Directors inform the members that the Company
Pursuant to Section 148 of the Companies Act, 2013, your continuously looks out for energy conservation measures
Directors have re-appointed M/s. Vivek Laddha & Associates, in all areas of operations across its both the Units. Similarly,
Cost Accountants (FRN 103465), being eligible, to conduct your Company endeavors to lookout for up-gradation and
Cost Audit of the Cost Records maintained by the Company absorption of technology. Your Company also spends
for the Financial Year 2021-2022. continuously on research and development. Your Directors
REPORTING OF FRAUDS BY AUDITORS are glad to inform the members that your Company is a net
foreign exchange earner. The relevant detail as required to be
During the year under review, the Statutory Auditors, Cost
disclosed with respect to Energy Conservation, Technology
Auditors and Secretarial Auditors have not reported any
Absorption and Foreign Exchange Earnings and Outgo
instances of frauds committed in the Company by its officers
pursuant to Section 134(3)(m) of the Companies Act, 2013 read
or employees under Section 143(12) of the Companies Act,
2013. with the Rule 8(3) of the Companies (Accounts) Rules, 2014 are
given in Annexure – II and forms integral part of this Report.
CORPORATE GOVERNANCE
NUMBER OF BOARD MEETINGS
The Company is committed to maintain the high standards
of Corporate Governance. Your Directors adhere to the During the year 2020-21, the Board of Directors met four
requirements set out in Companies Act, 2013 and the SEBI times on 19th June, 2020, 8th August, 2020, 31st October,
(Listing Obligations and Disclosure Requirements) Regulations, 2020 and 28th January, 2021. The details of number of Board
2015 and have implemented all the prescribed requirements. Meetings and the attendance of the Directors are provided
Pursuant to regulation 34(3) of the SEBI (Listing Obligations in the Corporate Governance Report forming part of the
and Disclosure Requirements) Regulations, 2015, the Reports Board’s Report. The frequency and intervening gap between
on Corporate Governance and Management Discussions & the meetings was within the period prescribed under the
Analysis have been incorporated in the Annual Report and Companies Act, 2013, SEBI (Listing Obligations and Disclosure
form an integral part of the Board’s Report. A Certificate Requirements) Regulations, 2015 and Secretarial Standards-1
from Statutory Auditors confirming compliance to conditions issued by Institute of Company Secretaries of India (ICSI) on
of Corporate Governance as stipulated under SEBI (Listing Board Meetings read with General Circular 11/2020 dtd. 24th
Obligations and Disclosure Requirements) Regulations, 2015, March, 2020 of Ministry of Corporate Affairs and Circular SEBI/
forms part of the Annual Report. HO/CFD/CMD1/CIR/P/2020/38 dtd. 19th March, 2020 of SEBI
issued in view of COVID-19 Pandemic.
AWARDS AND RECOGNITION
Your Company has been conferred with the following awards COMMITTEES
and recognition during the year under review :- The Company has constituted Audit Committee, Nomination
& Remuneration Committee, Stakeholders Relationship
1. Texprocil’s Gold Trophy for highest export performance
Committee and Corporate Social Responsibility Committee of
in cotton yarn – 51 & above counts under category -1 for
Directors. The details of these committees have been given in
the Financial Year 2019-20.
the Corporate Governance Report which is integral part of the
2. Texprocil’s Silver Trophy for second highest export Board’s Report.
performance in cotton yarn – 50 & below counts under
RELATED PARTY TRANSACTIONS
Category III for the Financial Year 2019-20.
All the related party transactions are entered on arm’s
HUMAN RESOURCE DEVELOPMENT
length basis and in the ordinary course of business. The
Industrial relations continued to be cordial during the period Company has complied with all the applicable provisions of
under review. Your Company firmly believes that a dedicated

Corporate Overview
Statutory Reports
the Companies Act, 2013 and SEBI (Listing Obligations and The Independent Directors in their separate meeting have
Disclosure Requirements) Regulations, 2015 in this regard. reviewed the performance of non-independent directors,
There is no materially significant related party transaction with Chairperson and Board as a whole along with review of
Promoters, Directors or Key Management Personnel and any quality, quantity and timeliness of flow of information between
other related party which may have potential conflict with the Board and management and expressed their satisfaction over
interest of the Company at large. During the year, the Company the same. The Nomination, Remuneration & Evaluation Policy
has not entered into any related party transactions under the is available under the link http://nitinspinners.com/wp-content/
Section 188 of the Companies Act, 2013 and the particulars of uploads/2019/06/Nomination-Remuneration-Policy.pdf
contracts or arrangements with related parties are Nil.
RISK MANAGEMENT POLICY
LOANS, GUARANTEES OR INVESTMENTS The Company has adopted a Risk Management Policy with
During the year under review, the Company has not given the objective of ensuring sustainable business growth with
any Loan, Guarantee or provided security in connection with stability and to promote a pro-active approach in reporting,
a loan nor has made any Investments under the Section 186 of evaluating and resolving risks associated with the business.
the Companies Act, 2013. The detailed Risk Management framework has been provided
in the Management Discussion and Analysis Report of the
PUBLIC DEPOSITS
Company.
During the period under review, your Company has not
accepted any public deposit within the meaning of provisions PARTICULARS OF EMPLOYEES & ANALYSIS OF
of section 73 of the Companies Act, 2013 read with the REMUNERATION
Companies (Acceptance of Deposits) Rules, 2014 and there is The information about employees and analysis of
no outstanding deposit due for re-payment. remuneration as required under Section 197 of the Companies
Act, 2013 read with Rule 5 of the Companies (Appointment
VIGIL MECHANISM/WHISTLE BLOWER POLICY
and Remuneration of Managerial Personnel) Rules, 2014 are
In pursuance of Section 177 (9) of the Companies Act, 2013 enclosed as Annexure - III
and the regulation 22 of the SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015 and with the ANNUAL RETURN
objective of pursuing the business in a fair and transparent Pursuant to Section 92(3) read with Section 134(3)(a) of the Act,
manner by adopting the highest standards of professionalism, the Annual Return as on 31st March, 2021 is available on the
honesty, integrity and ethical behavior and to encourage and Company’s website at https://nitinspinners.com/wp-content/
protect the employees who wish to raise and report their uploads/2021/06/MGT-7-2020-21.pdf
genuine concerns about any unethical behavior, actual or
INTERNAL FINANCIAL CONTROL
suspected fraud or violation of Company’s Code of Conduct,
the Company has adopted a Whistle Blower Policy. The policy The Company has laid down Internal Financial Controls
has been disclosed on the website of the Company under the that include a risk-based framework to ensure orderly and
link https://nitinspinners.com/wp-content/uploads/2018/06/ efficient conduct of its business, safeguarding of its assets,
VIGIL-MECHANISM.pdf accuracy and completeness of the accounting records and
assurance on reliability of financial information. The Company
During the year under review, there was no instance of fraud maintains adequate and effective internal control systems
reported and all the recommendation of the Audit Committee commensurate with its size and complexity. An independent
were accepted by the Board. No employee was denied internal audit function is an important element of the
access to the Audit Committee. Company’s internal control systems. This is executed through
NOMINATION, REMUNERATION & EVALUATION POLICY an extensive internal audit programme and periodic review by
AND EVALUATION the management and the Audit Committee.
Pursuant to provisions of Section 178 of the Companies Act, 2013 The Audit Committee has satisfied itself on the adequacy and
and SEBI (Listing Obligations and Disclosure Requirements) effectiveness of the internal financial control systems laid down
Regulations, 2015, the Board of Directors have approved by the management. The Statutory Auditors have confirmed
Nomination, Remuneration & Evaluation Policy prescribing the adequacy of the internal financial control systems over
inter-alia the criteria for appointment, remuneration & financial reporting.
evaluation of the Directors. The Nomination and Remuneration
Further, details of the internal control systems are given in the
Committee and Board reviewed the performance of Board,
Management Discussion and Analysis which forms part of this
its committee and all Individual Directors of the Company
Annual Report.
and expressed its satisfaction over the performance of them.

COMPLIANCE WITH THE PROVISIONS OF SEXUAL The disclosures other than made above are either nil or not
HARSSMENT OF WOMEN AT WORKPLACE (PREVENTION, applicable on the Company.
PROHIBITION AND REDRESSAL) ACT, 2013
DIRECTORS’ RESPONSIBILITY STATEMENT
The Company has duly constituted internal complaints
Pursuant to sub-section 3 (c) of Section 134 of the Companies
committee in line with the requirements of the Sexual
Act, 2013, the Board of Directors of the Company hereby state
Harassment of Woman at Workplace (Prevention, Prohibition
and confirm that:
and Redressal) Act, 2013 to redress complaints regarding
sexual harassment at workplace. The committee has informed (i) in the preparation of Annual Accounts, the applicable
that during the year it has not received any complaint under accounting standards have been followed along with
the Act, no complaint was pending at the beginning of the proper explanation relating to material departures;
year and no complaint was pending at the end of year under (ii) they have selected such accounting policies and applied
review. them consistently and made judgments and estimates
BUSINESS RESPONSIBILTY REPORT (BRR) that are reasonable and prudent so as to give a true
The Regulation 34(2)(f) of the SEBI (Listing Obligations and and fair view of the state of affairs of the Company at the
Disclosure Requirements) Regulations, 2015 (as amended) end of the financial year and of the profit or loss of the
requires top 1000 listed entities based on Market Capitalisation Company for that period;
to include BRR in its Board’s Report. In compliance of the (iii) they have taken proper and sufficient care for the
same Business Responsibility Report has been annexed as maintenance of adequate accounting records in
Annexure - IV with Board’s Report forming part of this Annual accordance with the provisions of this Act for safeguarding
Report. the assets of the Company and for preventing and
OTHER DISCLOSURES detecting frauds and other irregularities,
There is no material changes and commitments affecting the (iv) they have prepared the Annual Accounts on a going
financial position of the Company which has occurred between concern basis;
the end of the financial year and the date of the report. (v) they have laid down internal financial controls to be
The Company has complied with all the applicable Secretarial followed by the Company and that such internal financial
standards issued by the Institute of Company Secretaries of controls are adequate and were operating effectively;
India. and
The Company does not have any subsidiary, joint venture & (vi) they have devised proper systems to ensure compliance
associate company. with the provisions of all applicable laws and that such
systems were adequate and operating effectively.
No significant and material order has been passed during the
year by the regulators or courts or tribunals which can impact ACKNOWLEDGEMENTS
the going concern status and Company’s operations in future. Your Directors take this opportunity to thank Members, Bankers,
No unclaimed dividend or shares are due for transfer to Business Partners/Associates, Central and State Governments
Investor Education & Protection Fund (IPEF) in terms of for their consistent support and co-operation extended to the
provisions of Companies Act, 2013. Company. We also acknowledge the significant contribution
made by the employees by their dedication and hard work
The paid-up Equity Share Capital as on 31st March, 2021 was ` and trust reposed on us. We look forward to have the same
56.22 crore and there was no change in the Share Capital of support in our endeavor to help the Company to grow faster.
the Company during the Financial Year 2020-21.
The certain disclosures are common under Companies

For and on Behalf of the Board of Directors
Act, 2013 and SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 and the same are disclosed Place : Hamirgarh, Bhilwara R. L. NOLKHA
in the Corporate Governance Report forming part of this Date : 3rd August, 2021 Chairman
Report. (DIN – 00060746)

Corporate Overview
Statutory Reports
ANNEXURE - I
ANNUAL REPORT ON CSR ACTIVITIES
1. Brief outline on CSR Policy of the Company :

CSR is strongly connected with the principles of sustainability; an organisation should make decisions based not only on financial
factors but also on the social and environmental consequences. Hence, it is core responsibility of the Company to practice its
corporate values through its commitment to grow in a socially and environmentally responsible way, while meeting interests of
stakeholders. The Company recognises that its business activities have wide impact on the societies in which it operates, and
therefore an effective practice is required giving due consideration to the interests of its stakeholders including shareholders,
customers, employees, suppliers, business partners, local communities and other organisations. The Company constantly strives to
ensure strong corporate culture which emphasises on integrating CSR values with business objectives.
2. Composition of CSR Committee :

S. Name of Director Designation / Nature Number of meetings of Number of meetings of
No. of Directorship CSR Committee held CSR Committee attended
during the year during the year
1. Sh. Ratan Lal Nolkha Chairman-Executive Director 2 2
2. Sh. Dinesh Nolkha Member- Executive Director 2 2
3. Sh. Yeshwantlal Rati Lal Shah Member - Independent Director 2 2
4. Smt. Aditi Mehta Member - Independent Director 2 2
3. Provide the web-link where Composition of CSR Committee, CSR Policy and CSR projects approved by the board are
disclosed on the website of the Company.
Composition of CSR Committee - https://nitinspinners.com/invester-relation/company-information/
CSR Policy - https://nitinspinners.com/wp-content/uploads/2021/08/CSR-Policy.pdf
CSR Projects - https://nitinspinners.com/csr-environment/csr/
4. Provide the details of Impact assessment of CSR projects carried out in pursuance of sub-rule (3) of rule 8 of the Companies
(Corporate Social Responsibility Policy) Rules, 2014, if applicable (attach the report).
Not Applicable
5. Details of the amount available for set off in pursuance of sub rule (3) of rule 7 of the Companies (Corporate Social
responsibility Policy) Rules, 2014 and amount required for set off for the financial year, if any
Nil
6. Average net profit of the Company as per section 135(5) - ` 6812.44 Lacs
7. (a) Two Percent of average net profit of the Company as per section135(5) - ` 136.25 Lacs
(b) Surplus arising out of the CSR projects or programmes or - Nil

activities of the previous financial years.
(c) Amount required to be set off for the financial year, if any - Nil
(d) Total CSR obligation for the financial year (7a+7b-7c) - ` 136.25 Lacs
8. (a) CSR amount spent or unspent for the financial year :
Total Amount Amount Unspent (in `) - Nil

Spent for the Total Amount transferred to Unspent Amount transferred to any fund specified under Sched-
Financial Year CSR Account as per section 135(6) ule VII as per second provision to section 135(5)
(` In Lacs) Amount Date of transfer Name of the Fund Amount Date of transfer
` 143.16 N.A. N.A. N.A. N.A. N.A.
(b) Details of CSR amount spent against ongoing projects for the financial year : Nil

ANNEXURE - I (Contd.)
(c) Details of CSR amount spent against other than ongoing projects for the financial year:-
(1) (2) (3) (4) (5) (6) (7) (8)

S. Name of the Item from the Local Location of the Amount Mode of Mode of implementa-
No. Project list of activities area project spent implemen- tion-Through implementing
in schedule VII (Yes for the tation agency
to the Act / No) State District project -Direct Name CSR
(` in (Yes / No) Registration
Lacs) number
1. Medical Aid for Animal Welfare Yes Rajasthan Bhilwara 0.31 No People for Animals -
Animal
2. Health Check-up Health Care Yes Rajasthan Bhilwara 0.71 No Shri Ganesh Utsav -
Camps Prabandh and Seva
Samti
3. Cotton Rural Yes Rajasthan Bhilwara 1.65 No CITI-CDRA -
Development & Development
Research purpose
4. Payment to Widows Empowering Yes Rajasthan Bhilwara 2.51 No Mahesh Seva Nidhi -
Women and Shri Krishna Das
Jajoo Smarak Trust
5. COVID Support Contribution to Yes India Not 11.00 No PM Care Fund -
PM Care Fund Applicable
6. COVID Support Disaster Yes Rajasthan Chittorgarh 8.36 Yes - -
-Distribution of food Management
packets to migrant
workers
7. Bio - Toilets Sanitation Yes Rajasthan Chittorgarh 2.00 Yes - -
8. Construction of Sanitation Yes Rajasthan Bhilwara 106.48 Yes - -
Drainage System
9. Installation of Solar Ensuring Yes Rajasthan Bhilwara 8.08 Yes - -
Panel at Girls Environment
Hostel Sustainability
10. Conservation of Ensuring Yes Rajasthan Bhilwara 2.10 No Jaldhara Sansthan -
Water and Environment
Plantation Sustainability
TOTAL 143.16
(d) Amount spent in Administrative Overheads - Nil
(e) Amount spent on Impact Assessment, if applicable - Not Applicable
(f) Total amount spent for the Financial Year (8b+8c+8d+8e) - ` 143.16
(g) Excess amount for set off, if any
Sl. Particulars Amount (` in Lakhs)

No.
(I) Two Percent of average net profit of the Company as per section 135 (5) 136.25
(II) Total amount spent for the Financial Year 143.16
(III) Excess amount spent for the financial year [(ii)-(i)] 6.91
(IV) Surplus arising out of the CSR projects or programmes or activities of the previous financial Nil
years, if any
(V) Amount available for set off in succeeding financial years [(iii)-(iv)] 6.91
9. (a) Details of Unspent CSR amount for the preceding three financial years : Nil
(b) Details of CSR amount spent in the financial year for ongoing projects
of the preceding financial year(s) : Nil

Corporate Overview
Statutory Reports
ANNEXURE - I (Contd.)
10. In case of creation or acquisition of capital asset, furnish the details relating to the asset so created or acquired through CSR
spent in the financial year (assets-wise details) :
(a) Date of creation or acquisition of the capital asset(s) : None
(b) Amount of CSR spent for creation or acquisition of capital asset : Nil
(c) Details of the entity or public authority or beneficiary under : N.A.

whose name such capital asset is registered, their address etc.
(d) Provide details of the capital asset (s) created or acquired : N.A.
(including complete address and location of the capital asset).
11. Specify the reason (s), if the Company has failed to spend two percent of the average net profit as per section 135(5) - N.A.
Place : Hamirgarh, Bhilwara Dinesh Nolkha Ratan Lal Nolkha

Date : 3rd August, 2021 (Managing Director) (Chairman of CSR Committee)

ANNEXURE - II
ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO
Information pursuant to Rule 8 (3) of the Companies (Accounts) Rules, 2014 under Section 134 (3) of the Companies Act, 2013 and
forming part of Board’s Report for the year ended 31st March, 2021.
A. Conservation of Energy
(i) The steps taken or impact on Conservation of Energy - The Company gives high priority for conservation of energy in all fields.
The Company has taken following measures for energy savings in the previous year :
a) Replacement of Old type Spindles taps of Ring Frames Machines with Energy efficient Taps.
b) Replacement of Six old Two for One (TFO) Machines with high energy efficient TFO.
(ii) Steps taken by the Company for utilizing alternate sources of energy -
As renewable/green energy initiatives, the Company has installed 8.40 MW Roof Top Solar Power Plant for captive consumption
of Solar Power at Hamirgarh & Begun Units.
(iii) Capital Investments on energy conservation equipments
Estimated expenditure on energy conservation equipments is ` 213.03 Lacs.
B. Technology Absorption
(1) The efforts made towards technology absorption :-
The technology is being used for development of new products and for improvement in the production process and quality of
products.
(2) Benefits derived like product improvement, cost reduction, product development or import substitute:-
The Company has been continuously improving the quality of its existing products at reduced cost and developed new
products from time to time. During the year Company has set up state of art Fabric Designing facilities to develop innovative
designs.
(3) No technology has been imported during the last three years.
(4) Expenditure incurred on Research and Development during the year is as follows :
[` In Lacs]
(a) Capital - 153.67
(b) Recurring 396.98 330.94
Total (a+b) 396.98 484.61
% to total turnover 0.24% 0.34%
Foreign Exchange Earnings and Outgo

[` In Lacs]
(a) Earnings (Exports on FOB Value) 97568.40 75927.49
(b) Outgo - Capital Goods 69.01 9178.37
- Recurring :-
- Components, Spares Parts 1138.11 1849.83
- Raw Materials 12531.62 15191.15
- Sales Commission, Overseas Freight & Others 1801.94 1053.49
- Travelling - 9.95
R. L. Nolkha
Place : Hamirgarh, Bhilwara Chairman
Date : 3rd August, 2021 (DIN – 00060746)

Corporate Overview
Statutory Reports
ANNEXURE - III
Statement of Particulars of Employees pursuant to Section 197 of the Companies Act, 2013 read with Rule 5(2) of Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014
Details of Top Ten Employees in terms of Remuneration drawn :-
Name of Employee Designation Remuneration Qualifications Experience Commencement Whether Age Last
(` Lacs) Years of employment Permanent/ Years Employment
Contractual
Sh. Ratan Lal Nolkha Chairman 133.33 FCA,FCS, 50 6th September, Contractual 75 Managing
FCMA 1997 Director BSL
Limited
Sh. Dinesh Nolkha Managing Director 125.33 FCA, FCMA 26 1stJanuary, 1996 Contractual 50 -
Sh. Nitin Nolakha Jt. Managing Director 118.48 B.Com., MBA 21 1st Octobor, 1998 Contractual 45 -
Sh. Sandeep Kumar President (Operations) 38.76 B. Tech 29 1st April, 2007 Permanent 50 ST Cotex
Sh. Debasis Kumar Vice President 34.97 M. Tech. 35 17th April, 2018 Permanent 61 Nahar Ind.
Das Gupta (Weaving) (Tex.)
Sh. Purushottam Chief Financial Officer 31.44 B.Com, FCA 36 1st August, 2006 Permanent 59 BSL Limited
Maheshwari
Sh. Umesh Toshniwal Vice President (Mktg.) 31.41 B.Com 27 1st Apil, 1993 Permanent 49 -
Sh. Anil Kumar Jain Vice President 31.10 B.Sc, 31 3rd March, 2018 Permanent 55 Sutlej
(Commercial) ICWA,CS Textiles
Sh. Ratnesh Kumar General Manager 22.07 B. Tech. (Tex.) 29 29th April, 2008 Permanent 50 CLC Group
(Rotor Spinning)
Sh. Inderjeet Singh General Manager 21.73 B. Tech. (Tex.) 24 29th June, 2018 Permanent 48 Welspun
(Spinning) India
Sh. Ratan Lal Nolkha, Sh. Dinesh Nolkha and Sh. Nitin Nolakha are related to each other and none of the other employees are
related to any Director or manager of the Company.
Notes:
1. None of the employees of the Company are covered under Rule 5 (2) (iii) of the Companies (Appointment and Remuneration
of Managerial Personnel) Rules, 2014 as none of the employee is in receipt of remuneration in excess of remuneration drawn
by Managing Director & Whole Time Directors and holding more than 2% of the paid-up capital of the Company.
2. Except above, none of the person was employed for the full year and was in receipt of remuneration of ` 1,02,00,000 or more
and employed for part of the year and was in receipt of remuneration aggregating to ` 8,50,000/- or more per month.
Analysis of Managerial Remuneration
Pursuant to Section 197 of the Companies Act, 2013 read with Rule 5(1) of the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014 the statistical analysis of the remuneration paid to Directors and Key Managerial Personnel (KMP)
as against other employees of the Company and with respect to the performance of the Company (PAT) is given below:-
1. The ratio of the remuneration of each director to the median remuneration of the employees of the Company for the financial
year 2020-21 :-
Name of Directors Ratio

Executive Directors :-
Sh. Ratan Lal Nolkha, Chairman 63.24:1
Sh. Dinesh Nolkha, Managing Director 59.45:1
Sh. Nitin Nolakha, Jt. Managing Director 56.20:1
Non Executive Independent Directors :-
Sh. Yeshwantlal Ratilal Shah 1.14:1
Smt. Aditi Mehta 1.42:1
Dr. Rabisankar Chattopadhyay 1.42:1
Non Executive Directors are being paid only Sitting Fee.

ANNEXURE - III (Contd.)
2. The percentage increase/(Decrease) in remuneration of each director, Chief Financial Officer, Chief Executive Officer, Company
Secretary or Manager, if any, in the financial year 2020-21:-
Name of Directors & KMP % increase/

(Decrease) in
remuneration
Executive Directors :-
Sh. Ratan Lal Nolkha, Chairman 52.98
Sh. Dinesh Nolkha, Managing Director 61.20
Sh. Nitin Nolakha, Jt. Managing Director 70.49
Non Executive Independent Directors :-
Sh. Yeshwantlal Ratilal Shah (25.00)
Smt. Aditi Mehta 36.36
Dr. Rabisankar Chattopadhyay Nil
CFO & Company Secretary :-
Sh. P. Maheshwari, Chief Financial Officer Nil
Sh. Sudhir Garg, Company Secretary & GM (Legal) Nil
3. The percentage increase in the median remuneration of employees in the financial year 2020-21 :- 1.67
4. The number of permanent employees on the rolls of company:- 5172
5. Average percentile increase already made in the salaries of employees other than the managerial personnel in the last financial
year and its comparison with the percentile increase in the managerial remuneration and justification thereof and point out if
there are any exceptional circumstances for increase in the managerial remuneration :-
Average % increase in the salary of employees other than Managerial Personnel: - (2.16)
Average % increase/(Decrease) in the Salary of the Managerial Personnel :- 58.79
The variable component of Salary i.e. Commission of Executive Directors increased due to higher profit of the Company and
resulted into substantial increase in the salary of Managerial Personnel in comparison to other employees. However, the fixed
component of Salary has decreased during this year in comparison to previous year.
6. The Company affirms that the remuneration paid to Directors and employees are as per the remuneration policy of the
Company.
R. L. Nolkha


Corporate Overview
Statutory Reports
ANNEXURE - IV
BUSINESS RESPONSIBILITY REPORT (BRR)
This Business Responsibility Report (“BRR”) for the Financial Year ended 31st March, 2021 conforms to the Business Responsibility
Reporting requirement pursuant to Regulation 34(2)(f) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations,
2015, which has mandated the inclusion of BRR as part of the Company’s Annual Report for top 1000 listed entities based on market
capitalisation (calculated as on March 31 of every financial year) and the National Guidelines on Responsible Business Conduct
issued by Ministry of Corporate Affairs, Government of India in March, 2019.
We at Nitin Spinners believe that following National Guidance on Responsible Business Conduct results in long term value creation
for all stakeholders. We understand that our operations has social and environmental impacts and the company is committed towards
sustainable development, which requires caring for all stakeholders, maximising the social impact of business and minimising the
environmental footprint.
SECTION A: GENERAL INFORMATION ABOUT THE COMPANY

1. Corporate Identity Number (CIN) of the Company - L17111RJ1992PLC006987
2. Name of the Company - NITIN SPINNERS LIMITED
3. Registered address - 16-17 KM. STONE, CHITTOR ROAD,
HAMIRGARH,
BHILWARA - 311025 RAJASTHAN
4. Website - www.nitinspinners.com
5. E-mail id - [email protected]
6. Financial Year reported - 2020-21
7. Sector(s) that the Company is engaged in (industrial - Yarn - NIC Code – 13111
activity code-wise) Cotton Knitted Fabric - NIC Code - 13911
Woven Fabric – NIC Code – 13121
Finish Fabric – NIC Code - 13131
8. List three key products / services that the Company - Yarn, Knitted Fabric, Woven Fabric and Finish Fabric
manufactures / provides (as in balance sheet)
9. Total number of locations where business activity is - 2 (Two)
undertaken by the Company
A. Number of International Locations (Provide details - Company’s manufacturing facilities and offices are located in India
of major 5)
B. Number of National Locations - The Company has 2 state-of-the-art manufacturing facilities located
at in the State of Rajasthan. The registered office of the company is
located at the factory at Hamirgarh, Bhilwara. The second factory is
located in Bhanwaria Kalan, Chittorgarh.
10. Markets served by the Company – Local / State / - Company serves both national and international markets and we
National / International export to more than 50 countries.
SECTION B: FINANCIAL DETAILS OF THE COMPANY

1. Paid up Capital (`) -
` 5622.00 Lacs
2. Total Turnover (`) -
` 162441.22 Lacs
3. Total profit after taxes (`) -
` 6887.19 Lacs
4. Total Spending on Corporate Social Responsibility -
The Company’s total spending on CSR for the financial year 2020-21
(CSR) as percentage of profit after tax (%) is ` 143.16 Lacs against obligations of ` 136.25 Lacs which is 2% of
the average PAT for the last 3 years
5. List of activities in which expenditure in 4 above has - Nitin Spinners Limited is committed to sustainable development of
been incurred all sections of society and preservation of Environment. During the
year under review, the Company has carried out activities primarily
related to :
1. Rural Development - Construction of drainage system at
Kanyakheri a nearby village.
2. Disaster Management - Distribution of Food Packets during
lockdown, contribution to PM Care
3. Installation of Solar System at Girls Hostel
4. Construction of Bio Toilets
5. Conservation of Water & Plantation
Details of CSR policy and activities under section 135 of The
Companies Act, 2013 has been attached as Annexure in the Board’s
Report.

ANNEXURE - IV (Contd.)
SECTION C: OTHER DETAILS

1. Does the Company have any Subsidiary Company / - No
Companies
2. Do the Subsidiary Company/Companies participate - N.A.
in the BR Initiatives of the parent Company? If yes,
then indicate the number of such Subsidiary
Company(s):
3. Do any other entity/entities (e.g. suppliers, - At present, the BR initiatives have been undertaken at company
distributors etc.) that the Company does business level. Several stakeholders engage with the Company in the course
with, participate in the BR initiatives of the Company? of its business such as suppliers, distributors, customers, government
If yes, then indicate the percentage of such entity/ agencies, similar economic groups and other entities. The Company
entities? [Less than 30%, 30- 60%, More than 60%]:- promotes BR initiatives across its value chain. However, none of
them directly participate in the BR initiatives of the Company.
SECTION D : BR INFORMATION
1. Details of Director/Directors responsible for BR
A. Details of the Director/Director responsible for implementation of the BR policy/policies -
1 DIN Number - 00054658
2 Name - Shri Dinesh Nolkha
3 Designation - Managing Director
1. PRINCIPLES OF RESPONSIBLE BUSINESS CONDUCT

Principle 1 : Businesses should conduct and govern themselves with Ethics, Transparency and Accountability
Principle 2 : Businesses should provide goods and services that are safe and contribute to sustainability throughout
their life cycle.
Principle 3 : Businesses should promote the wellbeing of all employees.
Principle 4 : Businesses should respect the interests of, and be responsive towards all stakeholders, especially those
who are disadvantaged, vulnerable and marginalised.
Principle 5 : Businesses should respect and promote human rights.
Principle 6 : Business should respect, protect, and make efforts to restore the environment.
Principle 7 : Businesses, when engaged in influencing public and regulatory policy, should do so in a responsible
manner.
Principle 8 : Businesses should support inclusive growth and equitable development.
Principle 9 : Businesses should engage with and provide value to their customers and consumers in a responsible
manner.
2. PRINCIPLE-WISE (AS PER NVGS) BR POLICY/POLICIES (REPLY IN Y/N)

A. DETAILS OF COMPLIANCE (REPLY IN Y/N)
P1 P2 P3 P4 P5 P6 P7 P8 P9
1. Do you have a policy/ policies for...... Y Y Y Y Y Y Y Y Y
2. Has the policy being formulated in consultation with the relevant Y Y Y Y Y Y Y Y Y
stakeholders? *
3. Does the policy conform to any national / international standards? Y Y Y Y Y Y Y Y Y
If yes, specify? (50 words) **
4. Has the policy being approved by the Board? if yes, has it been Y Y Y Y Y Y Y Y Y
signed by MD/owner/ CEO/ appropriate Board/Director?***
5. Does the company have a specified committee of the Board / Y Y Y Y Y Y Y Y Y
Director / Official to oversee the implementation of the policy?
6. Indicate the link for the policy to be viewed online? Policies can be viewed at the website of the
Company at www.nitinspinners.com
7. Has the policy been formally communicated to all relevant Yes, the policies have been posted on the
internal and external stakeholders? website of the Company and communicated to
all internal stakeholders.

Corporate Overview
Statutory Reports
P1 P2 P3 P4 P5 P6 P7 P8 P9
8. Does the company have in-house structure to implement the Y Y Y Y Y Y Y Y Y
policy / policies?
9. Does the Company have a grievance redressal mechanism Y Y Y Y Y Y Y Y Y
related to the policy / policies to address stakeholders’
grievances related to the policy /policies? ****
10. Has the Company carried out independent audit/evaluation of Y Y Y Y Y Y Y Y Y
the working of this policy by an internal or external agency *****
Notes
* All the policies have been formulated in consultation with Internal stakeholders. While there may not be formal consultation
with all the external stakeholders, relevant policies / procedures have been evolved over a period of time by taking inputs
from concerned stakeholders.
Policies
P1 - Code of Conduct, Vigil Mechanism
P2 - Integrated Management System Policy
P3 - Integrated Management System Policy, HR Policy
P4 - Stakeholder Engagement Policy
P5 - Human Rights Policy
P6 - Integrated Management System Policy
P7 - Public and Regulatory Policy
P8 - Corporate Social Responsibility Policy, Social Accountability Policy
P9 - Customer Centricity Policy
** All policies conform to the applicable laws of the country, SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015, and National Guidance on Responsible Business Conduct. In addition the policies have been formulated
in accordance with the following standards where ever applicable:
P1 P2 P3 P4 P5 P6 P7 P8 P9
ISO 14001:2015 ISO ISO SA 8000:2014
45001:2018 50001: 2018
*** The Policies which are statutorily required to be approved by the Board have been approved by the Board. The Company’s
other policies have been approved by Managing director of the company and these policies has been taken up by the
Board in its Meeting held on 8th May, 2021
***** The Whistle Blower Mechanism adopted by the Company provides employees/ Customers/Vendors/Contractors etc.
to report any concerns or grievances pertaining to any potential or actual violation of Company’s Code of Conduct and
Ethics policy or any unethical behaviour.
***** The policies are evaluated internally. Policies relating to occupational health and safety management, energy management
system, environment management system, and social accountability have been audited by an external agency.
B. IF ANSWER TO THE QUESTION AT SERIAL NUMBER 1 AGAINST ANY PRINCIPLE, IS ‘NO’, PLEASE
P1 P2 P3 P4 P5 P6 P7 P8 P9
1. The Company has not understood the Principles
2. The Company is not at a stage where it finds itself in a position to
formulate and implement the policies on specified principles
3. The Company does not have financial or manpower resources
------ Not Applicable ------
available for the task
4. It is planned to be done within next 6 months
5. It is planned to be done within the next 1 year
6. Any other reason (please specify)

3. GOVERNANCE RELATED TO BR
1. Indicate the frequency with which the Board of : The Board of Directors of the Company, either directly or through its
Directors, Committee of the Board or CEO to Committees, assesses various initiatives forming part of the BR
assess the BR performance of the Company. performance of the Company on a periodic basis. The CSR
Within 3 months, 3-6 months, Annually, More Committee meets from time to time to review implementation of the
than 1 year. projects/programmes/activities to be undertaken in the field of CSR.
2. Does the Company publish a BR or a : The Company publishes the information on BR which forms part of
Sustainability Report? What is the hyperlink for the Annual Report of the Company. The Annual Report is also
viewing this report? How frequently it is uploaded on the website of the Company
published?
SECTION E: PRINCIPLE-WISE PERFORMANCE

PRINCIPLE – 1
1. Does the policy relating to ethics, bribery and : The Company has a “Code of Conduct Policy” (“Code”) to conduct
corruption cover only the company? Yes/ No. Does it its business with honesty and integrity and in compliance with all
extend to the Group/Joint Ventures/ Suppliers/ applicable legal and regulatory requirements. This Code sets out
Contractors/NGOs /Others? the fundamental standards to be followed by all employees of the
Company.
The Code is also to act as a deterrent from unethical doings and to
promote ethical values and is the manifestation of the Company’s
commitment to successful operation of the Company’s business in
the best interest of the shareholders, creditors, employees, other
business associates and stakeholders.
The Code of Conduct explicitly guides our people on ethical
dealings with external stakeholders. The Code is also to act as a
deterrent from unethical doings and to promote ethical values and is
the manifestation of the Company’s commitment to successful
operation of the Company’s business in the best interest of the
shareholders, creditors, employees, other business associates and
stakeholders.
2. How many stakeholder complaints have been : During the year under review, there were no cases on the violation
received in the past financial year and what of the Company’s Code of Conduct.
percentage was satisfactorily resolved by the
management? If so, provide details thereof, in about
50 words or so.
PRINCIPLE - 2
1. List up to 3 of your products or services whose : We produce yarns and fabrics and cotton is our main raw material.
design has incorporated social or environmental We have been proactive in sourcing from responsible sources. We
concerns, risks and/or opportunities. use 100% organic cotton, BCI certified and GIZA certified cotton
recycled cotton and recycled polyester fibre. The yarns and fabrics
produced out of these sources constitute approx. 15% of the total
revenues. It is realised at farming end.
2. For each such product, provide the following details : The benefits are realised at farming end
in respect of resource use (energy, water, raw
material etc.) per unit of product(optional):thereof, in
about 50 words or so.

Corporate Overview
Statutory Reports
A. Reduction during sourcing / production / distribution : We procure BCI certified and organic cotton. BCI certified and
achieved since the previous year throughout the organic cotton have multiple advantages for all stakeholders right
value chain? from Farmers to the final consumer. Better Cotton Initiative (BCI)
exists to make global cotton production better for the people who
produce it, better for the environment it grows in, and better for the
sector’s future. BCI connects people and organisations from across
the cotton sector, from field to store, to promote measurable and
continuing improvements for the environment, farming communities
and the economies of cotton producing areas. BCI has 7 Principles
that are the overarching sustainability requirements.
Principle 1: BCI Farmers minimise the harmful impact of crop
protection practices.
Principle 2: BCI Farmers promote water stewardship
Principle 3: BCI Farmers care for the heath of soil
Principle 4: BCI Farmers enhance biodiversity and use land
responsibly
Principle 5: BCI Farmers care for and preserve fibre quality
Principle 6: BCI Farmers promote decent work
Principle 7: BCI Farmers operate an effective management system
B. Reduction during usage by consumers (energy, : The benefits in terms of energy and water savings for BCI certified
water) has been achieved since the previous year? cotton and organic cotton are realised at the growing and sourcing
stage.
3. Does the Company have procedures in place for : The Company has a policy to encourage a purchase of BCI (Better
sustainable sourcing (including transportation)? Cotton Initiative) certified cotton, recycled Polyester Fibre and
Organic Cotton. We also use recycled cotton in our manufacturing.
We have a policy to procure 15% of the raw material from responsible
sources which include BCI certified, Organic and recycled cotton
and Polyester fibre.
A. If yes, what percentage of your inputs was sourced : We have approx. 15% of our inputs sourced sustainably.
sustainably? Also, provide details thereof, in about Organic Cotton - 5%
50 words or so. year throughout the value chain?
BCI certified Cotton - 5%
Recycled cotton - 2%
Recycled Polyester Fibre – 3%
4. Has the company taken any steps to procure goods : Purchases from nearby districts amount to 15% of total purchases
and services from local & small producers, including
communities surrounding their place of work?
A. If yes, what steps have been taken to improve their : The Company actively participates in the funding and activities of
capacity and capability of local and small vendors? the Cotton Research Centre - CITI towards Cotton Development and
research. The research benefits the local cotton farmers in growing
cotton which are of good quality and also improves the profitability
of the farmers.
5. Does the company have a mechanism to recycle : We maintain a ZERO waste to landfill operations at both of our
products and waste? If yes what is the percentage of plants. Being a environmentally conscious and responsible
recycling of products and waste (separately as <5%, organisation we don’t send our wastes to landfill. All the cotton, yarn
5-10%, >10%). Also, provide details thereof, in about and fabric wastes are either reprocessed in our own manufacturing
50 words or so. or sent for other industrial uses. 10% of our waste out of production
is recycled and reprocessed in our own operations and balance is
sold for other industrial uses. For our liquid discharge we have
installed ZERO LIQUID DISCHARGE (ZLD) systems hence we don’t
discharge effluent in our vicinity of operations. The dry sludge out of
ZLD is sent to authorised collectors and recyclers.

PRINCIPLE – 3
1. Please indicate the Total number of employees. : 5172 (Permanent - 5133, Contractual - 39)
2. Please indicate the Total number of employees : 39 (Thirty Nine)
hired on temporary/contractual/casual basis.
3. Please indicate the Number of permanent women : 7 (Seven)
employees.
4. Please indicate the Number of permanent employees : 17 (Seventeen)
with disabilities
5. Do you have an employee association that is : No. Being a responsible organisation we understand that employees
recognised by management. are an important stakeholder and employees satisfaction is
immensely important for the success of the organisation. We have
instituted Grievance Redressal Mechanism under the Social
Accountability Standard (SA 8000). One of the important part of the
Grievance redreesal mechanism to include worker representatives
in addressing the complaints or issues on employees
6. What percentage of your permanent employees is : N.A.
members of this recognised employee association?
7. Please indicate the Number of complaints relating to : No complaints relating to child labour, forced labour, involuntary
child labour, forced labour, involuntary labour, sexual labour, sexual harassment has been received during the last
harassment in the last financial year and pending, as financial year ending on 31st March, 2021.
on the end of the financial year.
8. What percentage of your under mentioned : Category of Employees Safety Skill
employees were given safety & skill up-gradation Training Upgradation
training in the last year? - % Training - %
Employees Employees
covered covered
(a) Permanent Employees 100% 4%
(b) Permanent Women Employees 100% 4%
(c) Casual/Temporary/Contractual 100% 0%
Employees
(d) Employees with Disabilities 100% 4%
PRINCIPLE – 4
1. Has the company mapped its internal and external While no formal stakeholder mapping exercise has been done the
stakeholders? Yes/No company considers employees, customers, suppliers, investors and
analysts, shareholders, regulatory bodies and community around
our plants as stakeholders for the organisation.
2. Out of the above, has the company identified the Yes, the community around our plants particularly women and poor
disadvantaged, vulnerable & marginalised are identified as vulnerable and marginalised stakeholders by the
stakeholders. organisation.
3. Are there any special initiatives taken by the Yes. The Company through CSR Policy addresses the socially
company to engage with the disadvantaged, disadvantaged sections of the society i.e. women and poor nearby
vulnerable and marginalised stakeholders. If so, our plant locations. Within the broader stakeholder group of
provide details thereof, in about 50 words or so. communities, the Company works towards women empowerment.
The details of our work with the disadvantages, vulnerable and
marginalised stakeholders have been reported in the Annexure 1 of
the Board’s report.

Corporate Overview
Statutory Reports
PRINCIPLE – 5
1. Does the policy of the company on human rights The Company understands and continuously strives to promote
cover only the company or extend to the Group/ human rights as mentioned in the Constitution of India in the
Joint Ventures/Suppliers/Contractors/NGOs/Others? provisions of Fundamental Rights and Directive Principles of State
Policy and also the guidelines of the International Bill of Human
Rights. While, the company’s human rights policy is applicable to the
company only, we promote the awareness and realisation of human
rights across our value chain and among our stakeholders.
2. How many stakeholder complaints have been No complaint was pending in the past and further, no complaint was
received in the past financial year and what percent received pertaining to human rights violation during the financial
was satisfactorily resolved by the management? 50 year 2020-21.
words or so.
PRINCIPLE – 6
1. Does the policy related to Principle 6 cover only the Environment Policy covers all manufacturing sites and own
company or extends to the Group/Joint Ventures/ employees and contractors of the Company. We encourage
Suppliers/Contractors/NGOs/ others. Suppliers and others in our value chain to adopt policies to minimise
the environmental impact
2. Does the company have strategies/ initiatives to Yes, the Company has strategies to address global environmental
address global environmental issues such as climate issues. The Company also has a Environment Policy, Sustainability
change, global warming, etc? Y/N. If yes, please give Policy, Energy Management System that covers the aspects of
hyperlink for webpage etc. environment conservation. Various sustainability initiatives taken by
the Company includes energy management, waste reduction,
emission reduction, and water management.
3. Does the company identify and assess potential Yes - The Company has a mechanism to identify and assess potential
environmental risks? Y/N environmental risks at the plant level. The Company is certified for
ISO 14001 whereby the environmental risks and control measures
are periodically reviewed by independent auditors.
4. Does the company have any project related to Clean No
Development Mechanism? If so, provide details
thereof, in about 50 words or so. Also, if Yes, whether
any environmental compliance report is filed?
5. Has the company undertaken any other initiatives on Being an good corporate citizen and being responsible towards the
– clean technology, energy efficiency, renewable environmental impact of our operations we have taken a number of
energy, etc. Y/N. If yes, please give hyperlink for initiatives.
web page etc. 1. Zero Liquid Discharge System
2. Zero Waste to landfill
3. Sustainable cotton procurement
4. Rain Water Harvesting
5. Sewage Treatment Plant
6. Use of Renewal Energy - We have installed 8.40 MW capacity
of solar power in our premises.
7. Energy Efficient Machinery
a) Replacement of Spindles and Bobbins of Ring Frames
Machines from higher to lower weight.
b) Reduction in the leakage of compressed air and air
pressure during machine cleaning.
c) Replacement of old motors of Machines to Energy Efficient
Motors.
d) The Company has also replaced eight old Two for One
(TFO) Machines with high energy efficient TFO.

6. Are the Emissions/Waste generated by the company Yes

within the permissible limits given by CPCB/SPCB for
the financial year being reported?
7. Number of show cause/ legal notices received from No showcause / legal notice has been received from CPCB / SPCB
CPCB/SPCB which are pending (i.e. not resolved to during the 2020-21.
satisfaction) as on end of Financial Year.
PRINCIPLE – 7
1. Is your company a member of any trade and chamber Yes, Nitin Spinners Limited is a member of the following bodies :
or association? If Yes, Name only those major ones (a) The Confederation of Indian Textile Industry (CITI)
that your business deals with:
(b) Northern India Textile Research Association (NITRA)
(c) The Cotton Textiles Export Promotion Council (TEXPROCIL)
(d) The Rajasthan Textile Mills Association (RTMA)
(e) Mewar Chamber of Commerce and Industry (MCCI)
2. Have you advocated/lobbied through above Yes, the Company through various Industry associations, participates
associations for the advancement or improvement of in advocating matters for the advancement of the Industry and Public
public good? Yes/No; if yes specify the broad areas Good. The Company has a Public and Regulatory Policy to ensure
( drop box: that the highest standards of business conduct are followed while
Governance and Administration, Economic Reforms, engaging with aforesaid Trade associations/Industry bodies.
Inclusive Development Policies, Energy security,
Water, Food Security, Sustainable Business
Principles, Others)
PRINCIPLE – 8
1. Does the company have specified programmes/ Nitin Spinners Limited acknowledges its responsibility towards the
initiatives/projects in pursuit of the policy related to society and supports inclusive growth and equitable development
Principle 8? If yes details thereof. of all its stakeholders. We strongly believe in growing together
responsibly leading to success of our business. We aim at balancing
the needs and address the concerns of our stakeholders and
endeavour to take into the consideration the impact we have on the
environment, society and the community. We are committed to
giving back to the society within which it operates and flourishes
and as part of this principle, we have chosen our initiatives under our
CSR Programs. The Company carries out various initiatives under
the aegis of ‘Corporate Social Responsibility’ and are undertaken
directly or through NGO or government entities. Please refer to CSR
Report in Annexure to the Board’s Report.
2. Are the programmes / projects undertaken through Please refer to the CSR Report which is annexed as Annexure to the
in-house team / own foundation / external NGO / Board’s Report in this Annual Report
government structures / any other organisation?
3. Have you done any impact assessment of your Impact assessment is done by our internal teams.
initiative?
4. What is your company’s direct contribution to During the financial year 2020-21, the Company spent ` 143.16 Lacs
community development projects- Amount in INR towards CSR initiatives. Details of the projects are available in
and the details of the projects undertaken. Annexure to the Board’s Report.
5. Have you taken steps to ensure that this community Each of the projects is having an outcome which is acknowledged
development initiative is successfully adopted by by the community. The Company works with partners who have a
the community? Please explain in 50 words, or so. grass root understanding of the community that makes the projects
successful, both in the short term and long term. Most of the
Company’s CSR programs are long term in nature and the Company
also work with the Government in creating a sustainable engagement.
PRINCIPLE – 9

Corporate Overview
Statutory Reports
1. What percentage of customer complaints/consumer The Company is committed to creating products and solutions that
cases are pending as on the end of financial year. exceed customer expectations and enhance the level of business
profitability. We consistently strive forth to ensure higher customer
satisfaction through our efforts in production innovation, R&D
activities and ensuring enhanced lifecycle of the product. No
customer complaints was received during the 2020-21
2. Does the company display product information on The Company complies with disclosure requirements as per local
the product label, over and above what is mandated laws. In addition, some other details are also displayed as per
as per local laws? Yes / No / N.A. / Remarks customers’ requests and/or facilitate handling/transportation.
(additional information)
3. Is there any case filed by any stakeholder against There are no cases received in the last 5 years or pending with
the company regarding unfair trade practices, regard to unfair trade practices, irresponsible advertising and/or
irresponsible advertising and/or anti-competitive anticompetitive behaviour as on 31st March, 2021
behaviour during the last five years and pending as
on end of financial year. If so, provide details thereof,
in about 50 words or so.
4. Did your company carry out any consumer survey/ Customer feedback is taken after sales. We have consistently
consumer satisfaction trends? achieved 100% customer satisfaction in our customer satisfaction
index.
R. L. Nolkha

FORM NO. MR-3
SECRETARIAL AUDIT REPORT
FOR THE FINANCIAL YEAR ENDED 31st March, 2021
[Pursuant to section 204(1) of the Companies Act, 2013 and Rule No.9 of
the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014]
To, (a) The Securities and Exchange Board of India

The Members, (Substantial Acquisition of Shares and Takeovers)
Nitin Spinners Limited Regulations, 2011;
16-17 K. M. Stone, Chittor Road, Hamirgarh (b) The Securities and Exchange Board of India
Bhilwara – 311 001 (Rajasthan) (Prohibition of Insider Trading) Regulations, 2015;
(c) The Securities and Exchange Board of India (Issue of
We have conducted the secretarial audit of the compliance
Capital and Disclosure Requirements) Regulations,
of applicable statutory provisions and the adherence to good
2018 (Not applicable to the Company during the
corporate practices by Nitin Spinners Limited (hereinafter
Audit Period);
called “the Company”). Secretarial Audit was conducted in a
manner that provided us a reasonable basis for evaluating the (d) The Securities and Exchange Board of India (Share
corporate conducts/statutory compliances and expressing our Based Employee Benefits) Regulations, 2014 (Not
opinion thereon. applicable to the Company during the Audit
Based on our verification of the Company’s books, papers, Period);
minute books, forms and returns filed and other records (e) The Securities and Exchange Board of India (Issue
maintained by the Company and also the information and Listing of Debt Securities) Regulations, 2008
provided by the Company, its officers, agents and authorized (Not applicable to the Company during the Audit
representatives during the conduct of secretarial audit, Period);
the explanations and clarifications given to us and the (f) The Securities and Exchange Board of India
representations made by the Management and considering (Registrars to an Issue and Share Transfer Agents)
the relaxations granted by the Ministry of Corporate Affairs Regulations, 1993 regarding the Companies Act
and Securities and Exchange Board of India warranted due and dealing with client;
to the spread of the COVID-19 pandemic, we hereby report
that in our opinion, the Company has, during the audit period (g) The Securities and Exchange Board of India
covering the financial year ended on 31st March, 2021 (‘Audit (Delisting of Equity Shares) Regulations, 2009
Period’) complied with the statutory provisions listed hereunder (Not applicable to the Company during the Audit
and also that the Company has proper Board-processes and Period);
compliance-mechanism in place to the extent, in the manner (h) The Securities and Exchange Board of India
and subject to the reporting made hereinafter: (Buyback of Securities) Regulations, 2018 (Not
We have examined the books, papers, minute books, forms applicable to the Company during the Audit
and returns filed and other records maintained by the Period);
Company for the financial year ended on 31st March, 2021 (i) The Securities and Exchange Board of India
according to the provisions of: (Listing Obligations and Disclosure Requirements)
(i) The Companies Act, 2013 (the Act) and the rules made Regulations, 2015.
thereunder; (vi) As confirmed by the management, there are no sector
(ii) The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) specific laws that are applicable specifically to the
and the rules made thereunder; Company.
(iii) The Depositories Act, 1996 and the Regulations and Bye- We have also examined compliance with the applicable
laws framed thereunder; clauses of the following:
(iv) Foreign Exchange Management Act, 1999 and the i. Secretarial Standards issued by The Institute of Company
rules and regulations made thereunder to the extent of Secretaries of India;
Foreign Direct Investment, Overseas Direct Investment ii. The Listing Agreements entered into by the Company
and External Commercial Borrowings (Not applicable to with BSE Limited and National Stock Exchange of India
the Company during the Audit Period); Limited.
(v) The following Regulations and Guidelines prescribed During the period under review the Company has complied
under the Securities and Exchange Board of India Act, with the provisions of the Act, Rules, Regulations, Guidelines,
1992 (‘SEBI Act’):- Standards, etc. mentioned above.

Corporate Overview
Statutory Reports
FORM NO. MR-3

SECRETARIAL AUDIT REPORT (Contd.)
We further report that Majority decision is carried through while the dissenting
The Board of Directors of the Company is duly constituted members’ views, if any, are captured and recorded as part of
with proper balance of Executive Directors, Non-Executive the minutes.
Directors and Independent Directors. The changes in the We further report that there are adequate systems and
composition of the Board of Directors that took place during processes in the Company commensurate with the size and
the period under review were carried out in compliance with operations of the Company to monitor and ensure compliance
the provisions of the Act. with applicable laws, rules, regulations and guidelines.
Adequate notice is given to all directors to schedule the We further report that during the audit period the Company
Board Meetings, agenda and detailed notes on agenda were has not undertaken any event/action having a major bearing
sent at least seven days in advance, and a system exists for on the Company’s affairs in pursuance of the above referred
seeking and obtaining further information and clarifications laws, rules, regulations, guidelines, standards, etc.
on the agenda items before the meeting and for meaningful
participation at the meeting.
Place: Jaipur For V. M. & Associates

Date: 8 May, 2021
th
Company Secretaries
UDIN: F003355C000260150 (ICSI Unique Code P1984RJ039200)
PR 581 / 2019
CS Manoj Maheshwari
Partner
Membership No.: FCS 3355
C P No.: 1971
Note: This report is to be read with our letter of even date which is annexed as Annexure A and forms an integral part of this report.

ANNEXURE A
To,
The Members,
Nitin Spinners Limited
16-17 K. M. Stone, Chittor Road, Hamirgarh
Bhilwara – 311001 (Rajasthan)
Our report of even date is to be read along with this letter.
1. Maintenance of secretarial record is the responsibility of the management of the Company. Our responsibility is to express an
opinion on these secretarial records based on our audit.
2. We have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the correctness
of the contents of the Secretarial records. The verification was done on test basis to ensure that correct facts are reflected in
secretarial records. We believe that the processes and practices, we followed provide a reasonable basis for our opinion.
3. We have not verified the correctness and appropriateness of financial records and Books of Accounts of the Company.
4. Where ever required, we have obtained the Management representation about the compliance of laws, rules and regulations and
happening of events etc.
5. The compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards is the responsibility of
management. Our examination was limited to the verification of procedures on test basis.
6. 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 affairs of the Company.

Date: 8th May, 2021 Company Secretaries
PR 581 / 2019
CS Manoj Maheshwari
Partner
C P No.: 1971

Corporate Overview
Statutory Reports
SECRETARIAL COMPLIANCE REPORT OF

NITIN SPINNERS LIMITED
For the year ended 31st March, 2021
We M/s V. M. & Associates, Company Secretaries have the Company during the Review Period);
examined:
(f) Securities and Exchange Board of India (Issue and Listing
(a) all the documents and records made available to us and of Debt Securities) Regulations, 2008 (Not applicable to
explanation provided by Nitin Spinners Limited (“the the Company during the Review Period);
listed entity”),
(g) Securities and Exchange Board of India (Issue and Listing
(b) the filings/ submissions made by the listed entity to the of Non- Convertible and Redeemable Preference Shares)
stock exchanges, Regulations,2013 (Not applicable to the Company during
(c) website of the listed entity, the Review Period);
(d) any other document/ filing, as may be relevant, which has (h) Securities and Exchange Board of India (Prohibition of
been relied upon to make this certification, Insider Trading) Regulations, 2015;
for the year ended 31st March, 2021 (“Review Period”) in respect (i) Securities and Exchange Board of India (Registrars to
of compliance with the provisions of: an Issue and Share Transfer Agents) Regulations, 1993
regarding the Companies Act and dealing with client and
(a) the Securities and Exchange Board of India Act, 1992 circulars/guidelines issued there under;
(“SEBI Act”) and the Regulations, circulars, guidelines
issued there under; and and based on the above examination and considering the
relaxations granted by the Ministry of Corporate Affairs and
(b) the Securities Contracts (Regulation) Act, 1956 (“SCRA”), Securities and Exchange Board of India warranted due to the
rules made there under and the Regulations, circulars, spread of the COVID-19 pandemic, we hereby report that,
guidelines issued there under by the Securities and during the Review Period:
Exchange Board of India(“SEBI”);
(a) The listed entity has complied with the provisions of the
The specific Regulations, whose provisions and the circulars/
above Regulations and circulars/ guidelines issued there
guidelines issued there under, have been examined, include:-
under.
(a) Securities and Exchange Board of India (Listing Obligations
(b) The listed entity has maintained proper records under
and Disclosure Requirements) Regulations, 2015;
the provisions of the above Regulations and circulars/
(b) Securities and Exchange Board of India (Issue of Capital guidelines issued there under insofar as it appears from
and Disclosure Requirements) Regulations, 2018 (Not our examination of those records.
applicable to the Company during the Review Period);
(c) No action has been taken against the listed entity/ its
(c) Securities and Exchange Board of India (Substantial promoters/ directors/ material subsidiaries either by SEBI
Acquisition of Shares and Takeovers) Regulations, 2011; or by Stock Exchanges (including under the Standard
Operating Procedures issued by SEBI through various
(d) Securities and Exchange Board of India (Buyback
circulars)under the aforesaid Acts/ Regulations and
of Securities) Regulations, 2018 (Not applicable to the
circulars/ guidelines issued there under.
Company during the Review Period);
(d) The listed entity has taken the following actions to comply
(e) Securities and Exchange Board of India (Share Based
with the observations made in previous reports: NOT
Employee Benefits) Regulations, 2014 (Not applicable to
APPLICABLE being no observation in previous report.

PR 581 / 2019
CS Manoj Maheshwari
Partner
C P No.: 1971

CERTIFICATE OF NON-DISQUALIFICATION OF DIRECTORS
(Pursuant to Regulation 34(3) and Schedule V Para C clause (10)(i) of the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015)
To,
The Members,
16-17 K.M. Stone,
Chittor Road, Hamirgarh
Bhilwara-311001 (Rajasthan)
We have examined the relevant registers, records, forms, returns and disclosures received from the Directors of Nitin Spinners
Limited having CIN:L17111RJ1992PLC006987 and having registered office at 16-17 K.M. Stone, Chittor Road, Hamirgarh,
Bhilwara-311001 (Rajasthan) (hereinafter referred to as ‘the Company’), 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 Sub clause 10(i) of the Securities Exchange
Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.
In our opinion and to the best of our information and according to the verifications (including Directors Identification Number (DIN)
status at the portal www.mca.gov.in) as considered necessary and explanations furnished to us by the Company & its officers, we
hereby certify that none of the Directors on the Board of the Company as stated below for the Financial Year ended on 31st March,
2021 have been debarred or disqualified from being appointed or continuing as Directors of companies by the Securities and
Exchange Board of India, Ministry of Corporate Affairs or any such other Statutory Authority.
Sr. No. Name of the Director DIN

1. Mr. Yeshwantlal Ratilal Shah 00019557
2. Mr. Dinesh Nolkha 00054658
3. Mr. Nitin Nolakha 00054707
4. Mr. Ratan Lal Nolkha 00060746
5. Mrs. Aditi Mehta 06917890
6. Mr. Rabisankar Chattopadhyay 06928729
Ensuring the eligibility of, 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.

PR 581 / 2019
CS Manoj Maheshwari
Partner
C P No.: 1971

Corporate Overview
Statutory Reports
MANAGEMENT DISCUSSION & ANALYSIS
Global Economic Overview The Net Foreign Direct Investment has also remained firm
The shake-up in all economies due to the prolonged Covid-19 throughout. Over 47% of the FDI has flown into the computer
stay will have a lasting impact on growth. However, most software and hardware sector, while construction accounted
economies are responding well to the current crisis with for 13.9%. Among these, manufacturing, chemicals, metals,
renewed stimulus and tailor-made strategies designed to and products and transport have also announced a significant
mitigate the losses of the year gone by. number of new projects, indicating that the capital investments
have remained strong despite the uncertainties. The overall
The global economic output is expected to expand 4% in economy, however, is likely to witness stress despite a
2021 and moderate to 3.8% in 2022, weighed down by the V-shaped recovery.
pandemic’s lasting damage to potential growth. On the other
hand, the overall global market is expected to strengthen Outlook
over the forecast horizon as confidence, consumption, and The Indian Government is curating a stimulus package for
trade gradually improve, primarily supported by the ongoing sectors worst affected by the pandemic, aiming to support an
vaccination. economy struggling with a slew of localised lockdowns due
to the second wave. The finance ministry is also working on
The global financial conditions have also eased considerably,
proposals to bolster tourism, aviation, and hospitality industries
especially after tightening early last year, primarily supported
and small and medium-sized companies.
by monetary policy accommodation. Growth in Emerging
Markets and Developing Economies (EMDEs) is expected to In April 2021, the finance ministry eased rules for Government
bounce back to 5% in 2021 from a 2.6% contraction in 2020. departments’ capital expenditure to boost spending. In
With a sharp contraction of 9.5% in 2020, global trade is addition to the low base effect in 2020-21, these will be some
expected to experience a modest pickup to an average of of the crucial drivers that will steer growth over the next two
5.1% in 2021-22. years:
The highly uncertain evolution of the pandemic, influenced Rapid vaccination pace and low death rates despite high
by Government actions, social behaviour, and vaccine-related infections
developments, will play a critical role in shaping the global Strong growth in private investment and its rebound
recovery’s strength and durability. stimulated by reforms and schemes
Outlook Pent-up demand backed by savings made by high- and
The economy’s structure is changing as per the pandemic, mid-income consumers who are waiting to spend
with some industries shrinking, while others are growing. Fiscal spending on building assets and infrastructure,
It impacted the mix of jobs available and the mix of skills which will have a high multiplier effect on the income,
required of the labour force. The global economic growth is jobs, and private investments, will likely start gaining
projected at 6% in 2021 and 4.4% in 2022 on the expectation momentum on the ground
of a sustained recovery. The main pointers to this would be
the gradual return to normalcy owing to worldwide vaccination Global Textile and Apparel Industry
drive, reducing unemployment rate, and policies and reforms The global textile market size was estimated at US$ 1,000.3
announced by Governments worldwide. As pent-up demand billion in 2020, and it is projected to reach US$ 1,041.8 billion
gets unleashed and consumer confidence returns, spending in 2021, with an expected CAGR of 4.4% from 2021 to 2028.
will also increase across sectors. However, new variants of Increasing demand for apparel from the fashion industry,
the virus and more waves of Covid-19 might come in between coupled with the growth of e-commerce platforms, is expected
expectation and reality. to drive the market over the forecast period.
Indian Economic Overview Cotton being the world’s most important natural fibre,
accounted for the largest revenue share of more than 39% in
According to the United Nations, India is expected to grow
2020. Whereas the wool segment accounted for a revenue
to 7.5% for 2021 and it is projected to grow by 10.1% in 2022.
share of 13.3% in 2020 and natural fibres made up 44% of total
However, the outlook for the year remains highly fragile since
the global share in 2020. (Source: Grandviewresearch.com).
India has been particularly affected by a more lethal second
wave. India’s total spending on health has remained almost Outlook
stagnant at 1.5% of the Gross Domestic Product (GDP) in the The demand for textiles will rise manifold, as it is expected that
last four years. But given the situation, the Government is the global population will touch the 8.1-billion mark by 2025.
projecting an increase to 1.8% this financial year and to 2.5% The global apparel market will grow to US$ 2.1 trillion by 2025.
by 2025. Apparel demand from the fashion industry, rising e-commerce,

MANAGEMENT DISCUSSION & ANALYSIS (Contd.)
and global demand for crease-free fabrics and high-quality dyed and printed fabrics is expected to drive this growth. The technical
segment is also expected to grow at 3.7% annually from CY2021 to 2028.
Indian Textile and Apparel Industry

India is the world’s second-largest producer of textiles and garments. It is also the fifth-largest exporter of textiles spanning apparel,
home, and technical products. Textiles export stood at US$ 26.08 billion as of February 2021.The textiles and apparel industry
contributes 2.3% to the country’s GDP, 13% to industrial production, and 12% to exports. Rising per capita income, favourable
demographics, and a shift in preference to branded products is helping the demand escalate north. The sector has witnessed a
spurt in investment during the last five years. It attracted Foreign Direct Investment (FDI) worth US$ 3.68 billion from April 2000 to
December 2020. It also employs around 4.5 Crores workers, including 35.22 lakh handloom workers.
Domestic textile and apparel industry in India (US$ billion)
200
150
100 190
50 90 100 106
75
0
FY18 FY19 FY20 FY21 FY26F
Textiles and apparel exports from India (US$ billion)
80 65
60
37 36 34
40 28
20
0
FY18 FY19 FY20 FY21 FY26F
(Source: IBEF, May 2021)
Government Initiatives
In the Union Budget 2021-22, the Government announced various initiatives to enhance the growth of this sector. Here are a few
of the highlights:
Launch a Mega Integrated Textile Region and Apparel (MITRA) Park scheme to establish seven textile parks with state-of-the-
art infrastructure, shared utilities, and R&D lab over three years
Funds allocated for setting up Kakatiya Mega Textile Park (KMTP) at an estimated cost of ` 1,552 Crores (US$ 212 Million)
Gujarat Government announced two mega textile parks for enabling forward and backward integration
Ministry of Textiles favoured a limited deal for the India-UK free trade agreement that could boost the garments sector (Source:
IBEF, May 2021).

Corporate Overview
Statutory Reports
Outlook textile industry, include prominent western brands such as

Zara, Forever 21, Levi’s, Benetton, and Marks & Spencer. It
The Indian textile and apparel industry is expected to grow to
also allows them to be near raw material suppliers, as India is
US$ 190 billion by FY26, driven by increased awareness of
one of the few countries in the world with presence across the
goods and higher disposable incomes. Increased penetration
textile value chain.
of organised retail, favourable demographics, and rising
income level will drive demand for textiles. The Government Improving farming techniques
initiatives such as the National Textile Policy, the SMARTH Despite being the world’s largest cotton producer, India’s
scheme, the easy availability of raw materials, and the rising yield in terms of kilograms of cotton per hectare of land
income levels will also add to this sector’s critical growth. under cotton cultivation is extremely low. India’s output is at
Cotton Industry 487 kgs/ha, as against the world average yield of 768 kgs/
ha. Modernisation of farming techniques and the use of
India accounts for 26% of the world’s total cotton production
machinery and equipment are likely to culminate into higher
and maintains its position as the world’s largest cotton
profits. Furthermore, the rising trend of the agri-tech theme in
producer (Source: IBEF, May 2021).Production grew from
start-ups is expected to act as a tailwind.
30.0 Million bales in 2015-16 to 35.4 Million bales in 2019-20.
Cotton production is expected to reach 36.0 Million bales. The Threats
Indian cotton industry acts as a source of income to 5.8 Million Availability of cotton
cotton farmers and also for 40 to 50 Million people in the allied Any significant damage to cotton crops in India or overseas
industries such as cotton processing and trade. due to natural calamities may cause severe price, supply
Cotton prices have ruled higher than the Minimum Support disruption and create uncertainty.
Price (MSP) of ₹ 5,515 a quintal since the beginning of October Pandemic and its variants
2020 due to the sharp increase in global prices since June
The long duration of second wave or further waves of the
2020. However, the prices were competitive against global
pandemic and its variants can disrupt trade.
prices, as there was good demand for Indian Textile products
in the global market. Uncertainty over physical retail
With new Covid-19 variants and waves, the opening of
Opportunities
physical apparel retail stores remains uncertain. Physical retail
Favourable demographics and landscape
is the preferred mode for shopping apparel for consumers,
In the second half of 2020-21, we witnessed households as they can feel the fabric, gauge the size/fitting, try wearing
switching from an ‘essentials-only’ spending to discretionary the clothes. Consumers are unlikely to spend large sums on
spending with the gradual reopening and unlocking of the apparel in the absence/only partial presence of physical retail
economy. This is likely to be the case in 2021-22, especially under the current circumstances.
with the increasing penetration of organised retail (physical
Dependency on labour
and e-commerce).
The Indian textile industry is still a highly labour-intensive one,
Ready for pent-up demand unlike other countries, where a large part of the process is
The Company can focus on value-added or premium products automated. This dependency on labour makes the sector
with new Capex by capitalising on the current low-interest vulnerable to the cost of rising wages and labour unrest.
regime and easy liquidity. These, combined with the visibilities
Company Overview
of robust demand post-Covid-19, will help companies with
the suitable capacity to capture the future demand early and Incorporated in 1992 in Bhilwara with a small capacity of
only 384 rotors, Nitin Spinners over the years has expanded
increase their margins.
its operations to include open-end yarns, ring-spun yarns,
Incentive Schemes blended yarns, knitted fabrics, and finished woven fabrics.
The Central Government has announced Production Link
It now has an installed capacity of 3,00,048 Spindles and 3,488
Incentive Scheme (PLI) for Textile sector and the Government
Rotors, producing 72,000 tons of yarn per annum. It also has
of Rajasthan has put in place Rajasthan Investment Production
an installed capacity of 63 Knitting Machines, producing 8,500
Scheme provides for Interest, Electricity Duty etc. subsidies for
tons of knitted fabrics per annum and 168 looms and dyeing,
installation/expansion of Textiles Units.
printing, and finishing capacities to make approximately 300
100% FDI allowance lakh meters of fabrics per annum.
It will encourage the foreign apparel industry to enter the The Company’s manufacturing units are strategically located
market. Already, the existing global investors in the Indian near places from where it sources its raw materials. It is also

well connected to major ports and markets. Investment in world-class technology, continuous growth and value addition, commitment
to consistent product quality, emphasis on customer satisfaction, and timely delivery of products are integral to the Company’s way
of functioning.
Financial Performance
(` in Crores)
Particulars 2020-21 2019-20

Revenue from operations 1,624.41 1,438.06
Other income 1.90 2.13
Total income 1,626.31 1,440.19
Earnings Before Interest, Tax and Depreciation & Amortisation 259.16 171.90
Profit for the year 68.87 23.82
EPS (Basic) (In ₹) 12.25 4.24
EPS (Diluted) (In ₹) 12.25 4.24
For financial and product-wise performance concerning operational performance, please refer to the ‘Financial Results’ and
‘Operational Performance’ section of the Board’s Report.
The Company operates in a Single Segment of Textiles.
Details of Significant Changes

(i.e., change of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with detailed
explanations, therefore:
2020-21 2019-20 % change Reason for change

Inventory Turnover 4.58 5.43 -15.65% Higher inventories days due to value addition activities
Interest Coverage Ratio 4.21 3.09 36.25% Improved due to higher operating profit margins
Current Ratio 1.27 1.15 10.43% Improved due to higher operating cash flow
Debt Equity Ratio 1.20 1.53 -21.57% Reduced due to repayments and increase in Net worth
Debtors Turnover 9.79 9.41 4.04% Average realisation period reduced
Operating Profit Margin 15.95% 11.95% 33.47% Increased sale of value-added products, cost
optimisation, and better realisations
Net Profit Margin 4.24% 1.66% 155.42% Due to higher production and turnover and better-
operating margins
Return on Net Worth 12.23% 4.82% 153.73% Due to higher profits
Earnings Per Share 12.25 4.24 188.92% Due to higher profits
Risk Management
Risk management measures are essential to a governance system. Therefore, it contributes to its strategic goals and safeguards its
value, assets, and reputation. Here are some of the risks and mitigation strategies of Nitin Spinners:
Risk Impact Mitigation

Competition Risk An increase in competition could The distinctly differentiated brand image,
negatively impact the market share, long-standing customer relationships and
margin profile and return on capital economies of scale help the Company
employed. mitigate this risk.
Foreign Currency Exchange Rate Risk Given that exports constitute 63% of the The Company mitigates this risk by way of
revenue, strengthening the Indian Rupee its robust currency hedging mechanisms
could hamper the revenue. and systems and export pricing.
Raw Material Price Inflation Risk An increase in cotton prices can adversely The Company has a team that constantly
impact the Company. monitors the cotton prices and follows a
diplomatic stocking policy to hedge against
any sharp movements.

Corporate Overview
Statutory Reports
Risk Impact Mitigation

Reputation Risk Any delay in payments to lenders/ The Company makes a conscious attempt
suppliers or poor quality of products can to meet the expectations of all stakeholders
lead to loss of trust in our integrity and and have stringent quality control
adversely impact business performance. procedures in place to ensure superior
product quality.
Customer Concentration Risk Any concentration of customers can cause The Company continuously aims to
loss of revenue in case of failure of any big strengthen its customer relationships and
customer. strives to add new customers across
geographies to diversify the customer
base.
Environment and Safety

Clean and safe environmental operations form Nitin Spinners’ key priorities. The Company conducts all its operations, ensuring the
safety of everyone concerned, compliance with statutory and industrial requirements for environment protection, and conservation
of natural resources to the extent possible. The Company is also accredited with OHSAS18001:2007 (Occupational Health & Safety
Management System) certification from the British Standards India (BSI).
Human Resources
Human resource is a crucial asset for a Company to achieve sustained growth. To attract, retain and develop its talent pool, the
Company has consistently recognised talent, imparted training, and followed the golden principle of rewarding performance.
Besides, it is committed to individual well-being and safety at the workplace and it is proud to attract the talent that it needs for future
growth. Most importantly, it places great emphasis on eliminating all forms of discrimination in terms of employment and professional
activities (gender, age, race, political affiliation, religion, among others).It pays special attention to professional equality, gender
equality, the employment of seniors and young people, the employment of people with disabilities. It also has been accredited with
S.A. 8000:2014 (Social Accountability System) certification from the BSI. As of 31st March, 2021, the Company’s strength stood at
5,172 employees.
Internal Control Systems and Their Adequacy

Nitin Spinners has appropriate systems for internal control. These systems are continually improved and modified to meet the
changes in the business conditions and the statutory and accounting requirements. The Company also has a robust Management
Information System, an integral part of the control mechanism. The Audit Committee of the Board of Directors reviews the efficiency
and effectiveness of the internal control systems. It then suggests solutions to improve and strengthen. The internal control system
was tested during the year, and no material weakness in design or operations was found.
Cautionary Statements
Statements in this Management Discussion and Analysis describing the Company’s objectives, projections, estimates, expectations
or predictions, may be ‘forward-looking statements’ within the meaning of applicable laws and regulations. Actual results could differ
materially from those expressed or implied. Important factors that could make a difference to the Company’s operations include raw
material availability and prices, cyclical demand and pricing in the Company’s principal markets, changes in Government regulations,
tax regimes, economic developments within India and the countries in which the Company conducts business and other incidental
factors.
R. L. Nolkha

CORPORATE GOVERNANCE REPORT
1. COMPANY’S PHILOSOPHY ON CORPORATE GOVERNANCE

The Company’s philosophy on Corporate Governance envisages attainment of high level of transparency, accountability and
integrity in all its facets.
The Company has consistently practiced good Corporate Governance norms for the efficient conduct of its business and its
obligations towards all its stakeholders viz., the shareholders, customers, employees and the community in which the Company
operates. The Company is committed to observe good governance by focusing on adequate & timely disclosures, transparent &
robust accounting policies, strong & independent Board and endeavors to maximise shareholders benefit. The Company believes
that it shall go beyond adherence of regulatory frameworks in disclosing material information to the stakeholders. We believe that
Corporate Governance is a journey to constantly improving sustainable value creation. The Board of Directors of the Company plays
a central role in the good Corporate Governance by building up strong principles and values on which the Company operates.
2. BOARD OF DIRECTORS
Composition, Category and Attendance at Meetings
The Board of Directors of the Company consists of eminent persons with considerable professional expertise and experience
in business and industry, finance, management, legal and marketing. The Company has a balanced mix of Executive and Non-
Executive Directors, the Board comprises of six Directors including one Woman Director and composition of Board of Directors
of the Company is in conformity with Regulation 17 of the Securities Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015 (herein after referred as “Listing Regulations”) and applicable provisions of the Companies Act,
2013. The Company has 50% Non Executive Directors, it has an Executive Chairman and the numbers of Independent Directors are
50% of the total number of Directors. The Independent Directors with their diverse knowledge, experience and expertise bring in
their independent judgment in the deliberation and decisions of the Board.
Number of Board Meetings

During the financial year 2020-21, four meetings of the Board of Directors were held on 19th June, 2020, 8th August, 2020, 31st
October, 2020 and 28th January, 2021. The frequency and intervening gap between the meetings was within the period prescribed
under the Companies Act, 2013, Listing Regulations and Secretarial Standards-1 issued by Institute of Company Secretaries of India
(ICSI) on Board Meetings read with General Circular 11/2020 dtd. 24th March, 2020 of Ministry of Corporate Affairs and Circular SEBI/
HO/CFD/CMD1/CIR/P/2020/38 dtd. 19th March, 2020 of SEBI issued in view of COVID-19 Pandemic. The frequency of the meetings
is enough for the Board to undertake its duties effectively.
The 28th Annual General Meeting of the Company was held on 16th September, 2020.
The Composition of the Board of Directors, attendance at Board & previous Annual General Meeting, number of other Directorship,
Committee Membership and Chairmanship are as under:-
Name of Directors Category of Directorship Board Attendance Directorship No. of other Committees
Meetings at last AGM in other in which Member or
attended held on 16th Companies Chairperson
out of 4 September Chairman Member
Meetings 2020
Sh. Ratan Lal Nolkha Promoter Executive 4 Yes 4 Nil Nil
Sh. Dinesh Nolkha Promoter Executive 4 Yes 3 Nil Nil
Sh. Nitin Nolakha Promoter Executive 4 Yes 2 Nil Nil
Sh. Yeshwantlal Ratilal Shah Independent Non-Executive 3 Yes Nil Nil Nil
Dr. Rabisankar Chattopadhyay Independent Non-Executive 4 Yes Nil Nil Nil
Smt. Aditi Mehta Independent Non-Executive 4 No Nil Nil Nil
None of the Directors of the Board serve as Members of more than 10 Committees nor are they Chairman of more than 5 Committees,
as per requirements of the Regulation 26(1) of the Listing Regulations. As required under Regulation 17A of the Listing Regulations
none of the Independent Directors serves as an Independent Director in more than seven listed companies and none of the
Independent Director of the Company is Whole Time Director in any other Listed Company. None of the Director is a Director in any
listed entity other than Nitin Spinners Limited. Dr. Rabisankar Chattopadhyay is holding 100 Equity Shares of the Company except
him no Independent & Non Executive Directors are holding any share in the Company and no convertible instrument has been
issued by the Company. None of the Directors are related to each other except three Executive Promoter Directors as Sh. R. L.
Nolkha is father of Sh. Dinesh Nolkha & Nitin Nolakha and Sh. Dinesh Nolkha & Nitin Nolakha are brothers.

Corporate Overview
Statutory Reports
CORPORATE GOVERNANCE REPORT (Contd.)
All the Independent Directors have given declaration and confirmation of their independence and inclusion of their names in
Independent Director’s data bank maintained with the Indian Institute of Corporate Affairs (‘IICA’) in terms of Section 150 of the Act
read with Rule 6 of the Companies (Appointment & Qualification of Directors) Rules, 2014, as amended. They are exempt from the
requirement to undertake the online proficiency self-assessment test conducted by IICA. It is hereby confirmed that in the opinion
of Board, the Independent Directors fulfill the conditions specified under the “Listing Regulations” and they are independent of
Management. No Independent Director has resigned during the year.
The table below summarizes the key attributes and skills matrix, identified by the Board of Directors, as required in the
context of business of the Company and the name of Directors who have such skills / expertise / competence :-
S. Name of Directors Skills / Expertise / Competence
No. Finance Legal Management Technical Marketing / Administra-
Operations Sales tion
1. Sh. Ratan Lal Nolkha, P P P P
Chairman
2. Sh. Dinesh Nolkha, P P P P P P
Managing Director
3. Sh. Nitin Nolakha, P P P P P
Jt. Managing Director
4. Sh. Yeshwant Lal Ratilal Shah, P P P P P
5. Dr. Rabisankar Chattopadhyay, P P P P
6. Smt. Aditi Mehta, P P P P
Board Meeting Procedure

management, auditors and the Board and oversees the
The Company’s Board Meetings are governed by a structured financial reporting process.
agenda. The Board Meetings are generally scheduled well
Broad terms of reference
in advance and the notice of each board meeting is given in
writing to each Director. The Board Meeting may be convened The terms of reference of the Audit Committee are aligned
on short notice, with the consent of Independent Directors, with the guidelines set out in the Regulation 18 read with Part
for urgent matters. The Board members, in consultation with C of schedule II of the Listing Regulations and also with the
the Chairman, may bring up any matter for the consideration provisions of Section 177 of the Companies Act, 2013. The
of the Board. The Board papers, comprising the agenda are terms of reference broadly includes approval of annual Internal
circulated well in advance before the meeting of the Board. Audit Plan, review of financial reporting processes, internal
control, risk management system, Internal Financial Control
All statutory, significant and other material information as
and its adequacy, functioning of whistle blower mechanism
specified in Part A of Schedule-II under the regulation 17(8)
and governance processes, discussions and approval of
of the Listing Regulations are regularly made available to
quarterly, half yearly and annual financial statements/results,
the Board, wherever applicable. The Board also reviews
recommendation for appointment, remuneration and terms of
periodically the compliances of laws applicable on the
appointment of auditors, monitor related party transactions,
Company.
uses and application of funds raised through issues etc.
Board’s role, functions, responsibility and accountability are
Composition
clearly defined. In addition to matters statutorily requiring
The composition of the Audit committee meets the requirements
Board’s approval, all major decisions involving formulation,
of section 177 of the Companies Act, 2013 and Regulation 18
strategy and business plans, annual operating and capital
of the Listing Regulations. It comprises Shri Y.R. Shah, Smt.
expenditure budgets, new investments, compliance with
Aditi Mehta and Dr. R. Chattopadhyay. All the members of
statutory regulatory requirements, major accounting provisions
the committee are non-executive and independent Directors.
etc. are considered by the Board.
Sh. Y.R. Shah, Chairman of the Committee possesses high
3. AUDIT COMMITTEE degree of accounting and financial management expertise
and all other members of the committee have experience and
Your Company has an Audit Committee constituted by
sound accounting and financial knowledge. The Chairman of
the Board of Directors which acts as a link between the

the Audit Committee was present at the last Annual General requirements of section 178 of the Companies Act, 2013 and
Meeting of the Company held on 16th September, 2020. Regulation 19 of the Listing Regulations. During the financial
year 2020-21 three meetings of the Committee were held
Meetings and Attendance
on 19th June, 2020, 31st October, 2020 and 28th January,
The committee met four times during the financial year 2020- 2021. The number of meetings attended by each committee
21. The dates on which Audit Committee Meetings were held member during the year was as under:-
are 19th June, 2020, 8th August, 2020, 31st October, 2020 and
28th January, 2021. The number of meetings attended by each Name of Member No. of Meetings attended
committee member during the year was as under:- Sh. Y.R. Shah, Chairman 2
Smt. Aditi Mehta, Member 3
Name of Member No. of Meetings attended
Dr. R. Chattopadhyay, Member 3
Sh. Y.R. Shah, Chairman 3
Sh. R. L. Nolkha, Member 3
Smt. Aditi Mehta, Member 4
Dr. R. Chattopadhyay, Member 4 Performance Evaluations:-
The Nomination & Remuneration Committee(NRC) and Board
The Managing Director, CFO as well as the representatives of
is responsible for undertaking a formal annual evaluation of
the internal & the statutory auditors are permanent invitees to
its own performance, committees and individual Directors
the meeting. The Company Secretary acts as secretary to the
with a view to review their functioning and effectiveness
audit committee.
and to determine whether to extend or continue the term of
4. NOMINATION AND REMUNERATION COMMITTEE: appointment of the independent directors. During the year,
NRC and the Board carried out the performance evaluation
Brief Description of terms of reference
of itself, Committees and each of the executive directors/
The terms of reference of Nomination and Remuneration non-executive directors/independent directors excluding
Committee are aligned with the guidelines set out in the the director being evaluated. The criteria for performance
Regulation 19 read with Part D of Schedule II of the Listing evaluation of the Board included aspects such as Board
Regulations and also with the provisions of Section 178 of the composition and structure, effectiveness of Board processes,
Companies Act, 2013 which broadly includes formulation of etc. The criteria for performance evaluation of the Committees
the criteria for determining qualifications, positive attributes included aspects such as structure and composition of
and independence of a director and recommend to the Committees, effectiveness of Committee Meetings, etc. The
Board a policy, relating to the remuneration of the directors, above criteria are broadly based on the Guidance Note on
key managerial personnel and other employees; formulation Board Evaluation issued by the Securities and Exchange
of criteria for evaluation of performance of the Independent Board of India on 5th January, 2017.
Directors and the Board of Directors and devising a policy
on Board diversity; to Devise a policy on diversity of board The detailed Policy inter-alia including criteria for performance
of directors; Identifying persons who are qualified to become evaluation is available under web link http://nitinspinners.
directors and who may be appointed in senior management com/wp-content/uploads/2018/06/Nomination-Remuneration-
in accordance with the criteria laid down, and recommend Policy.pdf.
to the Board their appointment and removal. Decision about Remuneration of Directors
extension or continuation of term of Independent Directors
Non-Executive/Independent Directors are paid only sitting
on the basis of report of performance evaluation and to
fees for attending the Board and Committee meetings
recommend to the Board, all remuneration in whatever form,
and Executive Directors are paid Salary, Commission and
payable to senior management.
Perquisites subject to the overall ceilings imposed by the
Composition Companies Act, 2013 and other applicable statues.
The Committee constitutes Sh. Y. R. Shah, Smt. Aditi Mehta, The appointment and remuneration of Chairman, Managing
Dr. R. Chattopadhyay, Non-Executive & Independent Directors Director and Jt. Managing Director are governed as per
and Sh. R. L. Nolkha, Executive Chairman of the Company. Sh. terms and conditions approved by the Board of Directors
Y. R. Shah is Chairman of the Committee. The composition and Shareholders on the recommendation of Nomination and
of the Nomination and Remuneration Committee meets the Remuneration Committee.

Corporate Overview
Statutory Reports
Details of Remuneration paid to Executive Directors

(` in Lakhs)
S. Name of Directors Category of Directors Basic Salary Contribution Commission Others Total
No. to P.F.
1 Sh. R.L. Nolkha Promoter & Executive Director 43.86 5.26 82.38 1.83 133.33
2 Sh. Dinesh Nolkha Promoter & Executive Director 36.72 4.40 82.38 1.83 125.33
3 Sh. Nitin Nolakha Promoter & Executive Director 30.60 3.67 82.38 1.83 118.48
Performance linked incentive & Criteria – Commission based on profit of the Company.
Service contract, notice period, severance fee - The employment of Executive Director shall terminate automatically in the event
of his ceasing to be a Director of the Company in the General Meeting and/or in the event of their resignation as a Director of the
Company. No severance fee is payable to Executive Directors. Notice period shall be as per the appointment letter issued at the
time of appointment.
Stock option to Executive Directors - Nil
Non-Executive Directors do not draw any remuneration except sitting fee of ` 40,000/- for attending every Board Meeting and `
20,000/- for attending every Committee Meeting except for that the CSR Committee Meetings. Total sitting fee of ` 8,40,000/- was
paid during the financial year 2020-21. The details of remuneration paid to Non-Executive Directors during the financial year 2020-21
are as under:-
Details of Sitting Fee paid to Non-Executive Directors

S. Name of Director Category of Directors Sitting Fee
No. (Amt. In Lakhs)
1. Sh. Y. R. Shah Independent Non-Executive Director 2.40
2. Smt. Aditi Mehta Independent Non-Executive Director 3.00
3. Dr. R. Chattopadhyay Independent Non-Executive Director 3.00
The Company has no pecuniary relationship or transactions with its Non-Executive Directors other than payment of sitting fees to
them for attending Board and Committee meetings. Dr. Rabisankar Chattopadhyay is holding 100 Equity Shares of the Company
except him no Independent & Non Executive Directors are holding any share in the Company and no stock option, convertible
instrument have been issued by the Company. The Company has not advanced any loan to any Director during the Financial Year
2020-21.
5. STAKEHOLDERS RELATIONSHIP COMMITTEE

The terms of reference of Stakeholders Relationship Committee are in line with the provisions of regulation 19 read with Part D of
Schedule II of the Listing Regulations and also with the provisions of Section 178 of the Companies Act, 2013 which broadly includes
the following:-
The committee considers and approves various requests for transmission, sub-division, consolidation, renewal, exchange, issue of
new certificates in replacement of old ones, Dematerialisation/Rematerialisation of Shares, non-receipt of declared Dividend, Annual
Reports and to redress the grievances of the investors as may be received from time to time. The Committee evaluate performance
and service standards of the Registrar and Share Transfer Agent of the Company; Provide guidance and make recommendations to
improve investor service levels for the investors; Review of the various measures and initiatives taken by the Company for reducing
the quantum of unclaimed dividends; Review of adherence to the service standards adopted by the Company; Review of measures
taken for effective exercise of voting rights by shareholders.
The Committee meets as and when required and during the financial year 2020-21, one meeting of the Committee was held on 31st
October, 2020.
The Secretarial Department of the Company and Registrar & Transfer Agent, Bigshare Services Private Limited, Mumbai attend all
the Grievance of the Shareholders and Investors received directly or through SEBI, Stock Exchanges, Ministry of Corporate Affairs,
Registrar of Companies, SCORES etc.
No Stakeholders’ Grievance remained un-attended/pending for more than 15 days. There was no complaint pending disposal
as on the 31st March, 2021. No request for dematerialisation of Equity Shares of the Company was pending for approval as at the
31st March, 2021.

Composition
The composition of “Stakeholders Relationship Committee” is as under:
S. Name of the Director Designation Nature of Directorship

No.
1 Sh. Y.R. Shah Chairman Independent & Non-Executive
2. Sh. Dinesh Nolkha Member Promoter & Executive
3. Sh. Nitin Nolakha Member Promoter & Executive
Compliance Officer: - Shri Sudhir Garg, Company Secretary & GM (Legal)
Designated E-mail for Investors’ Grievances - [email protected]
Details of Complaints received and status thereof:-
No complaint was received from Investors during the financial year 2020-21 and no complaint was pending at the end of the year.
6. GENERAL BODY MEETING:-

(i) Location and Time of General Body Meetings:
The details of location, date and time of Annual General Meetings held during last three years are given as under :-
AGM Date Time Place Special Resolution(s) passed

26 AGM
th
22 September,2018
nd
3.30 PM Nitin Spinners Limited 1. Increase in Borrowing Power to ` 1500 Crores
16-17 KM Stone, Chittor u/s 180(1)(c) of the Companies Act, 2013 .
Road, Hamirgarh, 2. Creation of Security on increased Borrowing
Bhilwara -311025 Power u/s 180(1)(a) of the Companies Act, 2013.
3. Re-appointment of Sh. R. L. Nolkha, Executive
Chairman.
4. Re-appointment of Sh. Nitin Nolakha, Executive
Director.
5. Adoption of New set of Articles of Association
6. Ratification of “Relevant Date” (Preferential
Issue of Equity Shares)
27th AGM 20th September, 2019 3.30 PM Nitin Spinners Limited 1. Re-appointment of Sh. Dinesh Nolkha, Managing
16-17 KM Stone, Chittor Director
Road, Hamirgarh, 2. Re-appointment of Sh. Yashwantlal Ratilal Shah,
Bhilwara -311025 Independent Director
3. Re-appointment of Smt. Aditi Mehta,
4. Re-appointment of Sh. Rabishankar
Chattopadhyay, Independent Director
28th AGM 16th September,2020 3.00 PM Through Video Nil
Conference (VC)/ Other
Audio Visual Means
(“OAVM”) hosted at
16-17 KM Stone, Chittor
Road, Hamirgarh,
Bhilwara -311025
During the financial year 2020-21, no resolution has been passed through Postal Ballot. Also, no business proposed at the
ensuing Annual General Meeting requires passing through postal ballot.

Corporate Overview
Statutory Reports
7. INDEPENDENT DIRECTORS’ MEETING The code of conduct for Directors and Senior Management as
Pursuant to the Regulation 25(3) of the SEBI (Listing Obligations approved by the Board of Directors has been placed on the
and Disclosure Requirements) Regulations, 2015, the meeting website of the Company under the link http://nitinspinners.
of the Independent Directors was held on 19th June, 2020 com/wp-content/uploads/2019/04/Code-of-Conduct-for-
without the attendance of Non-Independent Directors and Directors.pdf. All Board members and senior management
members of management to inter-alia to: personnel have affirmed compliance with the code of conduct
during the year under review. In this regard, certificate of
Review the performance of Non Independent Directors
Managing Director is given at the end of this report.
and the Board of Directors as a whole;
Initiatives on Code of Conduct for Regulating, Monitoring &
Review the performance of the Chairman of the Company
Reporting Trading by Insiders
taking into account the views of the Executive and Non
In compliance with the SEBI regulation on Code of Conduct
Executive Directors;
for Regulating, Monitoring & Reporting Trading by Insiders, the
Assess the quality, content and timelines of flow of Company has instituted a comprehensive code of conduct for
information between the Management and the Board that its management staff. The Code lays down guidelines, which
is necessary for the Board to effectively and reasonably advises them on procedures to be followed and disclosures
perform its duties. to be made, while dealing with shares of the Company and
All the Independent Directors were present at the Meeting. cautions them on consequences of violations. The Company
follows closure of trading window prior to the publication of
8. OTHER DISCLOSURES: price sensitive information. The Company has been informing
the directors, senior management personnel and other
Details of Compliances:-
persons covered under the code and advise them not to trade
The Company has complied with all the requirements of the
in Company’s securities during the closure of trading window
Listing Regulations as well as SEBI regulations and guidelines.
period.
During the last three years, no penalties/strictures were
imposed / passed on the Company by Stock Exchanges or Compliance with Regulation 34(3) of SEBI (Listing Obligations
SEBI or any other statutory authority on any matter related to and Disclosure Requirements) Regulation, 2015.
capital markets. In accordance with the provisions of Regulation 34(3) read
with Schedule V Para C Sub clause (10) (i) of the SEBI (Listing
Related Party Transactions:-
Obligations and Disclosure Requirements) Regulations,
All transactions entered into with Related Parties as defined
2015, the Company has obtained a certificate from Practicing
under the Companies Act, 2013 and regulation 23 of the Listing
Company Secretary confirming that none of the Directors on
Regulations during the financial year were in the ordinary
the Board of the Company has been debarred or disqualified
course of business and on arms length pricing basis and do
from being appointed or continuing as directors of companies
not have any potential conflict the interests of the Company
by the Securities and Exchange Board of India, Ministry of
at large. There were no materially significant transactions with
Corporate Affairs or any such statutory authority. The certificate
related parties during the financial year. Suitable disclosure
issued is annexed herewith in this report.
as required by the Ind AS 24 has been made in the notes
to the Financial Statements. Pursuant to regulation 23 of Whistle Blower Policy/Vigil Mechanism:-
the Listing Regulations, all the related party transactions With the rapid expansion of business in terms of volume, value
are disclosed to Stock Exchanges on half yearly basis. The and geography, various risks associated with the business
Board has approved a policy for related party transactions have also increased considerably. One such risk identified
which has been uploaded on the Company’s website under is the risk of fraud & misconduct. The Audit Committee is
the link http://nitinspinners.com/wp-content/uploads/2021/02/ committed to ensure fraud-free work environment and to this
Related-Party-Policy.pdf end the Committee has laid down a Whistle Blower Policy
providing a platform to all the Directors, employee, other
Code of Conduct:-
stakeholders can report any suspected or confirmed incident
The Board of the Company has laid down a Code of Conduct
of fraud/misconduct. The policy also provides for adequate
for all Board members and Senior Management of the
safeguard against victimisation. This policy is applicable to all
Company. The Company is committed to conduct its business
the directors, employees, other stakeholders of the Company
in accordance with the pertinent laws, rules and regulations
and it is posted on the website of the Company under the
and with the highest standards of business ethics.

link http://nitinspinners.com/wp-content/uploads/2018/06/ Compliance Confirmation

VIGIL-MECHANISM.pdf. It provides for direct access to the It is confirmed that the Company has complied with the
Chairperson of audit committee in appropriate or exceptional requirements prescribed under Regulation 17 to 27 of the
cases and no employee was denied access to the Audit Listing Regulations, 2015.
Committee.
Discretionary Requirements
During the year under review, there was no instance of fraud
The Company has complied with all the mandatory
reported and all the recommendation of the Audit Committee
requirements of the Listing Regulations and adoptions of
were accepted by the Board. No employee was denied
discretionary requirements as provided in the Part –E of
access to the Audit Committee.
Schedule – II under regulation 27(1) Listing Regulations are as
Sexual Harassment of Women under:-
The Company has constituted Internal Complaint Committee (i) Separate post of Chairperson and Chief Executive Officer
under the Sexual Harassment of Women at Workplace
(ii) Modified opinion(s) in Audit Report –To move towards
(Prevention, Prohibition & Redressal) Act, 2013 and committee
regime of financial statement with unmodified audit
meet from time to time. The committee has informed that no
opinion.
complaint was pending at the beginning and end of the year
and no complaint of sexual harassment of women has been During the year the Company has paid total fee of ` 12.06
received during the financial year 2020-21. Lakhs to the Statutory Auditors towards Audit Fee and other
services.
Familiarisation Programme for Independent Directors:-
On appointment, the concerned Director is issued a Letter of There are no instances where Board has not accepted the
Appointment setting out in detail, the terms of appointment, recommendation of any Committee of Board of the Company.
duties, responsibilities and expected time commitments. Each The Company do not have any Subsidiary Company.
newly appointed Independent Director is taken through a
formal induction program on the Company’s manufacturing, 9. MEANS OF COMMUNICATION
marketing, finance and other important aspects. The Company The main channel of communication to shareholders is
Secretary briefs the Director about their legal and regulatory through Annual Report which inter-alia includes the Board
responsibilities as a Director. Report, the Report on Corporate Governance and Audited
Further, the Directors are regularly updated with amendments in Financial Statements.
the provisions of the Companies Act, 2013, Listing Regulations Quarterly financial results are approved by the Board of
etc. Besides this Directors are updated on continuous basis in Directors and submitted to the Stock Exchanges. The
respect of Related Party Transactions, Audit and Auditors and Quarterly financial results are published in one prominent
they are periodically meeting with the senior management of English newspaper such as the Business Standard and one/
the Company. two vernacular language newspapers such as the Rajasthan
The details of familiarisation programme for Independent Patrika/the Dainik Bhaskar and Nafa Nuksan.
Directors is available at the website of the Company under the The website of the Company www.nitinspinners.com acts as
link https://nitinspinners.com/wp-content/uploads/2021/03/ the primary source of information about the Company which
FAMILIARIZATION-PROGRAMS-2020-21.pdf inter-alia displayed the annual/quarterly financial results,
Risk Management official press/news release and Shareholding pattern, of the
The Company has a well-defined risk management Company. The same are also displayed on the website of both
framework in place. Under this framework, the Management the Stock Exchanges. The Company ensures that relevant
has categorised the risks as High risk, Moderate risk and provisions of Regulation 46 of the Listing Regulation, 2015 are
Low risk which were monitored on a continuous basis and complied with.
appropriate risk mitigation steps were initiated as and when Presentations made to institutional investors and analysts
deemed necessary. The detail of commodity price risk, during the financial year 2020-21 are available on the website
foreign exchange risk and hedging activities has been given of the Company www.nitinspinners.com and also disseminated
in Management & Discussions Analysis Report. to the Stock Exchanges i.e. BSE and NSE.
During the Financial year 2020-21, the Company did not

raise any funds through preferential allotment or qualified
institutional placement.

Corporate Overview
Statutory Reports
10. GENERAL SHAREHOLDER INFORMATION

Shareholder Information:-
A. Date of AGM & Time & Venue 16th September, 2021 at 3.00 PM IST through Video Conference
(VC)/Other Audio Visual Means (OAVM)
B. Date of Book Closure 10.09.2021 to 16.09.2021
(Both the days Inclusive)
C. Dividend Payment date Within 30 days from the date of AGM.
D. Financial Year 1st April, 2021 to 31st March, 2022
E. Tentative Financial Calendar for next Year for 2021-22:

Period Date of Board Meeting
1 Quarter ending June, 2021
st
Last week of July, 2021 or first week of August, 2021
2nd Quarter ending September, 2021 Last week of October, 2021 or First week of November, 2021
3rd Quarter ending December, 2021 Last week of January, 2022 or First week of February, 2022
Year ending 31 March, 2022
st
April/May 2022
AGM for year ending 31st March, 2022 August/September 2022
F. Listing on Stock Exchange & Stock Code :

Name of Stock Exchange Address Stock Code
BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, 532698
Mumbai – 400 001
National Stock Exchange of India Limited Exchange Plaza, Bandra Kurla Complex, Bandra (E), NITINSPIN
Mumbai – 400 051
The applicable listing fee for the Financial Year 2021-22 has been paid to both the Stock Exchanges
G. Stock Price Data :
Month BSE NSE

High Low High Low
April, 2020 35.20 26.45 35.90 26.00
May, 2020 32.05 27.20 32.40 27.00
June, 2020 56.00 30.80 55.00 30.10
July, 2020 42.85 36.40 42.95 36.45
August, 2020 43.25 36.60 43.25 36.95
September, 2020 41.20 34.95 41.00 35.05
October, 2020 52.40 37.80 52.50 37.50
November, 2020 59.75 43.30 60.50 41.15
December, 2020 77.35 57.05 76.95 56.90
January, 2021 96.00 69.05 96.30 69.60
February, 2021 86.35 68.70 85.00 69.75
March, 2021 93.00 78.05 93.20 78.00

H. Performance in comparison to Broad based Indices - BSE Sensex :-
60000.00 120.00
50000.00 100.00
40000.00 80.00 BSE SENSEX

BSE SENSEX
30000.00 60.00 NSL RATE

20000.00 40.00
10000.00 20.00
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MONTH
18000.00 120.00
16000.00
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12000.00 80.00 NSE NIFTY
NSE NIFTY
10000.00
60.00 NSL RATE
8000.00
6000.00 40.00
4000.00
20.00
2000.00
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I. Dematerialisation of Share and Liquidity:

The equity shares of the Company are compulsorily traded and settled in dematerialised form under ISIN INE229H01012. The
details of Shares under dematerialised and physical mode are as under:-
Particulars 31st March, 2021 31st March, 2020

No. of Shares % No. of Shares %
No. of Shares Dematerialised
- NSDL 4,90,00,821 87.16 5,08,50,651 90.45
- CDSL 72,18,549 12.84 53,68,719 9.55
No. of Shares in Physical Mode 630 0.00 630 0.00
Total 5,62,20,000 100.00 5,62,20,000 100.00
J. Outstanding GDRs/ADRs/Warrants Etc. Nil

Corporate Overview
Statutory Reports
K. Registrar & Share Transfer Agent:-

The Bigshare Services Private Limited is the Registrar and Share Transfer Agent (RTA) of the Company. The Shareholders /
Investors are requested to contact for all correspondence / queries at the following address:-
M/s Bigshare Services Private Limited

Unit : Nitin Spinners Limited
Address : 1st floor, Bharat Tin Works Building,
Opp. Vasant Oasis, Makwana Road
Marol, Andheri East,
Mumbai 400059, Maharashtra
Phone No. : 022-62638200
Fax No. : 022-62638299
Email : [email protected]
Web Site : http://www.bigshareonline.com
Share Transfer System
The SEBI vide PR No. 12/2019 dated 27th March, 2019 mandated that w.e.f. 1st April, 2019 no request for effecting transfer of
securities shall be processed unless shares are held in DEMAT form however this is not applicable on transmission or
transposition of securities. Accordingly, no request for transfer of shares in physical form was received by the Company. The
cases of transmission & transposition of shares in physical form is processed and completed by Bigshare Services Private
Limited, Mumbai within a period of 15 days from the date of receipt thereof provided all the documents are in order and after
taking necessary approvals from the Company. In case of shares in electronic form, the transfers are processed by NSDL/CDSL
through respective Depository Participants. In compliance with the Listing regulations, a practicing Company Secretary audits
the System of Transfer and a Certificate to that effect is issued.
L. Distribution of Shareholding as on 31st March, 2021:

No. of Equity Shares held No. of Shareholders % to Shareholders No. of Shares % to Shares
Up to 500 14678 78.9862 2449322 4.3567
501 to 1,000 1761 9.4764 1466715 2.6089
1,001 to 2,000 902 4.8539 1395155 2.4816
2,001 to 3,000 379 2.0395 981762 1.7463
3,001 to 4,000 180 0.9686 648437 1.1534
4,001 to 5,000 172 0.9256 816324 1.4520
5,001 to 10,000 261 1.4045 1952010 3.4721
10,001 & above 250 1.3453 46510275 82.7291
Total 18583 100.0000 56220000 100.0000
M. Credit Ratings of the Company
During the year 2020-21, Brickwork Ratings India Private Limited has reviewed the ratings of Bank Loan facilities of the
Company and following are credit ratings given by them :-
Facilities Reviewed Credit Rating Existing Rating

Long term Rating - Term Loan & Working BWR A (BWR A) Outlook – Negative BWR A (BWR A) Outlook – Stable
Capital (Fund Based)
Short Term Ratings (Non Fund based) BWR A1 (BWR A One) BWR A1 (BWR A One)

N. Plant Location & Address for Correspondence
(a) Plant Locations (i) 16-17 KM Stone, Chittor Road,

Hamirgarh,
Bhilwara (Rajasthan)
PIN - 311025
(ii) Chittor –Kota NH-27,
Village – Bhanwaria Kalan,
Tehsil-Begun,
Distt. - Chittorgarh (Rajasthan),
PIN - 312023
(b) Registered office and address for 16-17 KM Stone,
correspondence Chittor Road, Hamirgarh,
Bhilwara – 311025 (Rajasthan)
Phone : 01482-286110 to 286113
Fax No. : 01482-286117 & 286114
E-Mail : [email protected]
Website – www.nitinspinners.com
R. L. Nolkha

Corporate Overview
Statutory Reports
COMPLIANCE CERTIFICATE
{Under Regulation 17(8) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015}
A) We have reviewed financial statements and cash flow statement for the year ended 31st March, 2021 and that to the best of our
knowledge and belief:
(1) These statements do not contain any materially untrue statement or omit any material fact or contain statements that might
be misleading.
(2) These statements together present a true and fair view of the Company’s affairs and are in compliance with existing
accounting standards, applicable laws and regulations.
B) There are, to the best of our knowledge and belief, no transactions entered into by the company during the year which are
fraudulent, illegal or violative of the Company’s Code of Conduct.
C) We accept responsibility for establishing and maintaining internal controls for financial reporting and that we have evaluated the
effectiveness of the internal control system of the Company pertaining to financial reporting and we have disclosed to the auditors
and the audit committee, deficiencies in the design or operation of such internal controls, if any, of which we are aware and the
steps we have taken or propose to take rectify these deficiencies.
D) We have indicated to the auditors and the Audit Committee:
(1) Significant changes in internal control over financial reporting during the year;
(2) Significant changes in accounting policies during the year and that the same have been disclosed in the notes to the financial
statements; and
(3) Instances of significant fraud of which we have become aware and the involvement therein, if any, of the management or an
employee having a significant role in the Company’s internal control system over financial reporting.
(P. Maheshwari) (Dinesh Nolkha)

Chief Financial Officer Managing Director
PAN – ABAPM8005C (DIN - 00054658)
Place: Hamirgarh, Bhilwara

Date: 8th May, 2021
DECLARATION AS REQUIRED UNDER REGULATION 34(3) OF THE SEBI (LISTING OBLIGATIONS AND DISCLOSURE
REQUIREMENTS) REGULATIONS, 2015
All Directors and Senior Management Personnel of the Company have affirmed compliance with the Code of Conduct for Directors
and Senior Management of Nitin Spinners Limited for the Financial Year ended 31st March, 2021.
Place : Hamirgarh, Bhilwara (Dinesh Nolkha)

Date : 8th May, 2021 Managing Director
(DIN – 00054658)

AUDITOR’S CERTIFICATE ON COMPLIANCE OF CORPORATE
GOVERNANCE
To
The Members of Nitin Spinners Limited
We have examined the compliance of conditions of Corporate Governance by Nitin Spinners Limited for the year ended 31st March,
2021 as stipulated in Regulation 17 to 27 and clause (b) to (i) of sub-regulation (2) of regulation 46 of the SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015 (“Listing Regulations”).
The compliance of conditions of Corporate Governance is the responsibility of Management of the Company. Our examination
was limited to review of 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 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 condition 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.
For Kalani & Company

Chartered Accountants
Firm Regn. No 000722C
S.P. Jhanwar
Partner
Membership No.- 074414
Place : Hamirgarh, Bhilwara

Date : 3rd August, 2021

Corporate Overview
Statutory Reports
INDEPENDENT AUDITORS’ REPORT
To the Members of Basis for Opinion

Nitin Spinners Limited We conducted our audit of the Financial Statements in
accordance with the Standards on Auditing (SAs) specified
REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS under section 143(10) of the Companies Act, 2013 (“the
Opinion act”). Our responsibilities under those Standards are further
We have audited the accompanying Financial statements of described in the Auditor’s Responsibilities for the Audit
Nitin Spinners Limited (“the Company”), which comprise the of the Financial Statements section of our report. We are
Balance Sheet as at 31st March, 2021, the Statement of Profit and independent of the Company in accordance with the Code
Loss (including Other Comprehensive Income), the Statement of Ethics issued by the Institute of Chartered Accountants of
of Changes in Equity and the Statement of Cash Flows for the India (ICAI) together with the independence requirements that
year ended on that date, and a summary of the significant are relevant to our audit of the financial statements under the
accounting policies and other explanatory information provisions of the Act and the Rules made there under, and we
(hereinafter referred to as “the financial statements”). have fulfilled our other ethical responsibilities in accordance
with these requirements and the ICAI’s Code of Ethics. We
In our opinion and to the best of our information and according believe that the audit evidence we have obtained is sufficient
to the explanations given to us, the aforesaid financial and appropriate to provide a basis for our audit opinion on the
statements give the information required by Companies financial statements.
Act, 2013 (“the Act”) in the manner so required, and give a
true and fair view in conformity with the Indian Accounting Key Audit Matters
Standards prescribed under section 133 of the Act read with Key audit matters are those matters that, in our professional
the Companies (Indian Accounting Standards) Rules, 2015, as judgment, were of most significance in our audit of the
amended, (“IndAs” ) and other accounting principles generally financial statements of the current period. These matters
accepted in India, of the state of affairs of the Company as at were addressed in the context of our audit of the financial
31st March, 2021, the profit and total comprehensive income, statements as a whole, and in forming our opinion thereon,
changes in equity and its cash flows for the year ended on and we do not provide a separate opinion on these matters.
that date. We have determined the matters described below to be the
key audit matters to be communicated in our report.

INDEPENDENT AUDITORS’ REPORT (Contd.)
Key Audit Matter How the matter was addressed in our audit
1. Valuation of Inventories Our audit procedure:
• The net carrying value of inventory as on 31st March, • We have performed the Inventory physical stock count on sample
2021 is 21.16 % of Total Assets of the Company. basis. We performed inventory counts at location, which is selected
• Sales in the industry can be extremely volatile with based on financial significance and risk and we performed the
consumer demand changing significantly (Seasonal) following procedures at each site:
based on current trends. As a result, there is a risk (i) Selected a sample of inventory items and compared the quantities
that the carrying value of inventory exceeds its net we counted to the quantities recorded.
realisable value. (ii) Observed a sample of management’s inventory count procedures
Hence, we determined the valuation of inventories as a to assess compliance with Company’s policy, and
key audit matter. (iii) Made inquiries regarding obsolete inventory items and inspected
Related Disclosures: the condition of items counted.
Please refer to Note-6 for details of the accounting • We have also evaluated a selection of controls over inventory
policies of inventories and Note-6 of Notes to Financial existence across the Company.
Statements for relevant disclosures of inventories. • Examining the Company’s historical trading patterns of inventory
sold at full price and inventory sold below full price, together with
the related margins achieved for each product lines in order to gain
comfort that stock has not been sold below cost.
• Evaluating the rationality of the inventory policies such as the
policy of inventory valuation and provision for obsolescence and
understanding whether the valuation of inventory was performed in
accordance with the Company’s policy.
• Analyzing the inventory aging report and net realisable value of
inventories.
• Inspecting the post period sales situation and evaluating the net
realisable value of measurement applied on aging inventory in
order to verify the evaluation accuracy of the estimated inventory
allowance by the Company and
• Assessing whether the disclosures of provision for inventory
valuation are appropriate.
2. Trade Receivables Our Audit Procedure:
• The recoverability of trade receivables and the level • Assessed the design and implementation of key controls around the
of provisions for doubtful debts are considered to monitoring of recoverability.
be a significant risk due to the pervasive nature of • Discussed with the management regarding the level and ageing of
these balances to the financial statements, and the trade receivables, along with the consistency and appropriateness of
importance of cash collection with reference to the receivables provisioning by assessing recoverability with reference
working capital management of the business. to amount received in respect of trade receivables.
• 31 March, 2021 the trade receivables balances (net • In addition, we have considered the Company’s previous experience
st
of provisions) consist of 9.89 % of the total amount of bad debt exposure and the individual counter-party credit risk.
of assets. Accordingly, we determined audit of trade
• Tested these balances on a sample basis through agreement to post
receivables as the key audit matter.
period end invoicing and cash receipt.
Related Disclosures:
• The accuracy and completeness was verified through, analytical
Please refer to Note-7of Notes to Financial Statements for reviews and balance confirmation.
relevant disclosures of Trade Receivables.
• Analyzing the aging schedule of trade receivable, past collection
records, industry boom and concentration of customers’ credit risk.

Corporate Overview
Statutory Reports
Key Audit Matter How the matter was addressed in our audit
3. Revenue Recognitionn Our audit procedure:
• Revenue is an important measure used to evaluate • Assessing the design, implementation existence and operating
the performance of the Company. There is a risk that effectiveness of internal control procedures implemented as well as
the revenue is presented for amounts higher than test of details to ensure accurate processing of revenue transactions.
what has been actually generated by the Company. • Inspecting underlying documentation for any book entries which
Consequently, we considered revenue recognition to were considered to be material on a sample basis.
be a significant key audit matter.
• Inspecting the key terms and conditions of agreements with major
Related Disclosures: customers on a sample basis to assess if there were any terms and
Please refer to Note-11 of the accounting policies for conditions that may have affected the accounting treatment of the
details of the accounting policies of revenue recognition revenue recognition.
and Note- 39 of Notes to Financial Statements. • The accuracy and completeness of revenue was verified through,
cut-off test, analytical reviews and balance confirmation.
Information Other than the Financial Statements and preventing and detecting frauds and other irregularities;
Auditor’s Report Thereon selection and application of appropriate accounting policies;
The Company’s Board of Directors is responsible for the making judgments and estimates that are reasonable and
preparation of the other information. The other information prudent; and design, implementation and maintenance of
comprises the information included in the Management adequate internal financial controls, that were operating
Discussion and Analysis, Board’s Report including Annexures effectively for ensuring the accuracy and completeness of
to Board’s Report, Corporate Governance and Shareholder’s the accounting records, relevant to the preparation and
Information, but does not include the financial statements presentation of the financial statements that give a true and
and our auditor’s report thereon. The other information as fair view and are free from material misstatement, whether due
identified above is expected to be made available to us after to fraud or error.
the date of this auditor’s report. In preparing the financial statements, management is
Our opinion on the financial statements does not cover responsible for assessing the Company’s ability to continue
the other information and we will not express any form of as a going concern, disclosing, as applicable, matters related
assurance conclusion thereon. to going concern and using the going concern basis of
accounting unless management either intends to liquidate the
In connection with our audit of the financial statements, our
Company or to cease operations, or has no realistic alternative
responsibility is to read the other information identified above
but to do so.
when it becomes available and, in doing so, consider whether
the other information is materially inconsistent with the financial Those Board of Directors are responsible for overseeing the
statements or our knowledge obtained during the course of Company’s financial reporting process.
our audit or otherwise appears to be materially misstated. Auditor’s Responsibilities for the Audit of the Financial
When we read the other information as identified above, if Statements
we conclude that there is a material misstatement therein, Our objectives are to obtain reasonable assurance about
we are required to communicate the matter to those charged whether the financial statements as a whole are free from
with governance. material misstatement, whether due to fraud or error, and to
issue an auditor’s report that includes our opinion. Reasonable
Management’s Responsibility for the Financial Statements
assurance is a high level of assurance, but is not a guarantee
The Company’s Board of Directors is responsible for the matters that an audit conducted in accordance with SAs will always
stated in Section 134(5) of the Companies Act, 2013 (“the Act”) detect a material misstatement when it exists. Misstatements
with respect to the preparation of these financial statements can arise from fraud or error and are considered material if,
that give a true and fair view of the financial position, financial individually or in the aggregate, they could reasonably be
performance, total comprehensive income, changes in equity expected to influence the economic decisions of users taken
and cash flows of the Company in accordance with the IndAS on the basis of these financial statements.
and other accounting principles generally accepted in India.
This responsibility also includes maintenance of adequate As part of an audit in accordance with SAs, we exercise
accounting records in accordance with the provisions of professional judgment and maintain professional skepticism
the Act for safeguarding the assets of the Company and for throughout the audit. We also:

• Identify and assess the risks of material misstatement of We communicate with those charged with governance
the financial statements, whether due to fraud or error, regarding, among other matters, the planned scope and
design and perform audit procedures responsive to those timing of the audit and significant audit findings, including
risks, and obtain audit evidence that is sufficient and any significant deficiencies in internal control that we identify
appropriate to provide a basis for our opinion. The risk during our audit. We also provide those charged with
of not detecting a material misstatement resulting from governance with a statement that we have complied with
fraud is higher than for one resulting from error, as fraud relevant ethical requirements regarding independence, and
may involve collusion, forgery, intentional omissions, to communicate with them all relationships and other matters
misrepresentations, or the override of internal control. that may reasonably be thought to bear on our independence,
and where applicable, related safeguards.
• Obtain an understanding of internal financial controls
relevant to the audit in order to design audit procedures From the matters communicated with those charged with
that are appropriate in the circumstances. Under section governance, we determine those matters that were of most
143(3)(i) of the Act, we are also responsible for expressing significance in the audit of the financial statements of the
our opinion on whether the Company has adequate current period and are therefore the key audit matters. We
internal financial controls system in place and the describe these matters in our auditor’s report unless law or
operating effectiveness of such controls. regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a
• Evaluate the appropriateness of accounting policies
matter should not be communicated in our report because
used and the reasonableness of accounting estimates
the adverse consequences of doing so would reasonably
and related disclosures made by management.
be expected to outweigh the public interest benefits of
• Conclude on the appropriateness of management’s use such communication.
of the going concern basis of accounting and, based
Report on Other Legal and Regulatory Requirements
on the audit evidence obtained, whether a material
1) As required by the Companies (Auditor’s Report) Order,
uncertainty exists related to events or conditions that
2016(“the order) issued by the Central Government in
may cast significant doubt on the Company’s ability to
terms of Section 143(11) of the act, we give in “Annexure I”
continue as a going concern.
a statement on the matters specified in paragraph 3 and
If we conclude that a material uncertainty exists, we are 4 of the Order
required to draw attention in our auditor’s report to the
2) As required by section 143(3) of the Act, based on our
related disclosures in the financial statements or, if such
audit we report:
disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained (a) We have sought and obtained all the information and
up to the date of our auditor’s report. However, future explanations, which to the best of our knowledge
events or conditions may cause the Company to cease and belief were necessary for the purpose of
to continue as a going concern. our audit;
• Evaluate the overall presentation, structure and content (b) In our opinion and to the best of our information and
of the financial statements, including the disclosures, and according to the explanations given to us, proper
whether the financial statements represent the underlying books of accounts as required by law have been
transactions and events in a manner that achieves kept by the Company so far as appears from our
fair presentation. examination of those books;
Materiality is the magnitude of misstatements in the financial (c) The Balance Sheet, the Statement of Profit and Loss
statements that, individually or in aggregate, makes it probable (including Other Comprehensive Income), Statement
that the economic decisions of a reasonably knowledgeable of Changes in Equity and the Statement of Cash
user of the financial statements may be influenced. We Flow dealt with by this Report are in agreement with
consider quantitative materiality and qualitative factors in the relevant books of account.
(i) planning the scope of our audit work and in evaluating
(d) In our opinion, the aforesaid financial statements
the results of our work; and (ii) to evaluate the effect of any
comply with the IndAS specified under Section
identified misstatements in the financial statements.
133 of the Act, read with Rule 7 of the Companies
(Accounts) Rules, 2014

Corporate Overview
Statutory Reports
(e) On the basis of written representations received (h) With respect to the other matters to be included in
from the directors, as on 31st March, 2021 and taken the Auditor’s Report in accordance with Rule 11 of
on record by the Board of Directors, none of the the Companies (Audit and Auditors) Rules, 2014, in
Directors are disqualified as on 31st March, 2021, our opinion and to the best of our information and
from being appointed as a director in terms of according to the explanations given to us:
section 164 (2) of the Act.
i. The Company has disclosed the impact of
(f) With respect to the adequacy of the internal financial pending litigations on its financial position in its
controls over financial reporting of the Company financial statements. (Refer Note No.31)
and the operating effectiveness of such controls,
ii. The Company did not have any long term
refer to Annexure ‘II’ to this report.
contracts including derivative contracts, for
(g) With respect to the other matter to be included which there were any material foreseeable
in the Auditor’s Report in accordance with losses.
the requirements of section 197(16) of the Act,
iii. There are no amounts which are required to
as amended:
be transferred to the Investor Education and
In our opinion and to the best of our information Protection Fund by the Company.
and according to the explanations given to us, the
remuneration paid by the Company to its directors
during the year is in accordance with the provisions For Kalani & Company.
of section 197 of the Act. Chartered Accountants
Firm Regn. No. 000722C
S.P. Jhanwar
Partner
Membership No. 074414
Place: Bhilwara
Date: 8th May, 2021

ANNEXURE ‘I’
TO THE INDEPENDENT AUDITOR’S REPORT
(Referred to in paragraph 2 under ‘Report on Other Legal and Regulatory Requirements’ section of our report to the Members
of Nitin Spinners Limited of even date)
i. In respect of the Company’s fixed assets: has not given any guarantee or provided any security
to any party covered under section 185 or 186 of the
(a) The Company has maintained proper records
Companies Act, 2013. In case of investments provisions
showing full particulars, including quantitative
of section 185 and 186 of the Companies Act 2013 has
details and situation of fixed assets (Property, Plant
been complied.
& Equipment).
v. The Company has not accepted deposits from the public
(b) The fixed assets (Property, Plant & Equipment) have
within the meaning of Sections 73 to 76 of the Companies
been physically verified by the management at
Act, 2013 and the rules made there under, hence this
reasonable intervals. According to the information
clause is not applicable.
and explanations given to us, no material
discrepancies were noticed on such verification. vi. The maintenance of cost records has been prescribed
by the Central Government under section 148(1) of
(c) The title deeds of immovable properties are held in
the Companies Act, 2013, and as informed to us
the name of Company.
such accounts and records have been so made and
ii. Physical verification of inventory has been conducted maintained. However, we have not conducted a detailed
during the year at reasonable intervals by management. examination of the same.
As informed to us no material discrepancies have been
vii. According to the information and explanations given to
noticed on such verification.
us, in respect of statutory dues:
iii. The Company has not granted any loans, secured or
(a) Undisputed statutory dues including provident fund,
unsecured to any companies, firms, limited liability
employee state insurance, income tax, GST, custom
partnership or other parties covered in register
duty, cess and other statutory dues have generally
maintained under Section 189 of the Companies
been regularly deposited with the appropriate
Act, 2013.
authorities and there are no undisputed dues
iv. No loans have been given to parties covered under outstanding as on 31st March, 2021.
section 185 of the Companies Act, 2013. The Company
(b) Details of dues of Income Tax, Goods and Service Tax, Sales Tax, Service Tax, Excise Duty and Value Added Tax which
have not been deposited as at 31st March, 2021 on account of dispute are given below:
S. Name of Nature of Period Forum where Gross Amount Amount not

N. Statute Dues the dispute is Amount due deposited under deposited
pending (₹ in Lacs) protest/adjusted (₹ in Lacs)
by tax authorities
(₹ in Lacs)
1. Central Excise Excise duty 2006-07 High Court, 9.25 9.25 Nil
and Penalty Jodhpur
2. Customs Redemption 2009-10 CESTAT, 0.50 Nil 0.50
Fine Ahmedabad
Total 9.75 9.25 0.50
viii. Based on our verification, and according to the information and explanations given by the management, and also considering
the relief/moratorium allowed by Reserve Bank of India pursuant to Covid-19 pandemic, the Company has not defaulted in the
repayment of loans or borrowings to any banks and financial institutions. The Company did not have any loans or borrowing in
respect of Government or dues to debenture holders during the year.

Corporate Overview
Statutory Reports
ANNEXURE ‘I’
TO THE INDEPENDENT AUDITOR’S REPORT (CONTD.)
ix. The Company has not raised any money by way of xiv. During the year the Company has not made any
initial public offer or further public offer. According to preferential allotment or private placement of shares or
the information and explanation given to us, the money fully or partly convertible debentures, accordingly this
raised by the Company by way of term loans have been clause is not applicable
applied for the purpose for which they were obtained.
xv. The Company has not entered into any non-cash
x. To the best of our knowledge and according to the transactions with its Directors or persons connected to
information and explanations given to us, no fraud by its directors and hence provisions of section 192 of the
the Company or no material fraud on the Company by Companies Act, 2013 are not applicable to the Company.
its officers or employees has been noticed or reported
during the year. xvi. The Company is not required to be registered under
section 45-IA of the Reserve Bank of India Act, 1934.
xi. In our opinion and according to the information and
explanations given to us, the Company has paid/
provided managerial remuneration in accordance with For Kalani & Company.
the requisite approvals mandated by the provisions of Chartered Accountants
section 197 read with Schedule V to the Act. Firm Regn. No. 000722C
xii. The Company is not a Nidhi Company and hence S.P. Jhanwar
reporting under clause 3 (xii) of the Order is not applicable Partner
to the Company. Membership No. 074414
xiii. The Company has complied with Section 177 and 188 Place: Bhilwara
of the Companies Act, 2013 where applicable, for all Date : 8th May, 2021
transactions with the related parties and the details of
related party transactions have been disclosed in the
financial statements as required by the applicable Indian
Accounting Standards.

ANNEXURE ‘II’
TO THE INDEPENDENT AUDITOR’S REPORT
Report on the Internal Financial Controls under Clause (i) of was established and maintained and if such controls operated
Sub-section 3 of Section 143 of the Companies Act, 2013 effectively in all material respects.
(“the Act”).
Our audit involves performing procedures to obtain audit
We have audited the internal financial controls with reference evidence about the adequacy of the internal financial controls
to financial statements of Nitin Spinners Limited (“the system with reference to financial statements and their
Company”) as of 31st March, 2021 in conjunction with our audit operating effectiveness. Our audit of internal financial controls
of the financial statements of the Company for the year ended over financial reporting included obtaining an understanding
on that date. of internal financial controls over financial reporting, assessing
Management’s Responsibility for Internal Financial Controls the risk that a material weakness exists, and testing and
evaluating the design and operating effectiveness of internal
The Company’s management is responsible for establishing
control based on the assessed risk. The procedures selected
and maintaining internal financial controls with reference
depend on the auditor’s judgment, including the assessment
to financial statements based on the internal control over
of the risks of material misstatement of the financial statements,
financial reporting criteria established by the Company
whether due to fraud or error.
considering the essential components of internal control
stated in the Guidance Note on Audit of Internal Financial We believe that the audit evidence we have obtained is
Controls over Financial Reporting issued by the Institute of sufficient and appropriate to provide a basis for our audit
Chartered Accountants of India. These responsibilities include opinion on the Company’s internal financial controls with
the design, implementation and maintenance of adequate reference to financial statements.
internal financial controls that were operating effectively for
Meaning of Internal Financial Controls over Financial
ensuring the orderly and efficient conduct of its business,
Reporting
including adherence to Company’s policies, the safeguarding
A Company’s internal financial controls with reference
of its assets, the prevention and detection of frauds and errors,
to financial statements is a process designed to provide
the accuracy and completeness of the accounting records,
reasonable assurance regarding the reliability of financial
and the timely preparation of reliable financial information, as
reporting and the preparation of financial statements for
required under the Act.
external purposes in accordance with generally accepted
Auditors’ Responsibility accounting principles. A Company’s internal financial controls
Our responsibility is to express an opinion on the Company’s with reference to IndAS financial statements includes those
internal financial controls with reference to financial statements policies and procedures that (1) pertain to the maintenance
based on our audit. We conducted our audit in accordance of records that, in reasonable detail, accurately and fairly
with the Guidance Note on Audit of Internal Financial Controls reflect the transactions and dispositions of the assets of the
Over Financial Reporting (the “Guidance Note”) and the Company; (2) provide reasonable assurance that transactions
Standards on Auditing, issued by ICAI and deemed to be are recorded as necessary to permit preparation of financial
prescribed under section 143(10) of the Companies Act, 2013, statements in accordance with generally accepted accounting
to the extent applicable to an audit of internal financial controls, principles, and that receipts and expenditures of the Company
both applicable to an audit of Internal Financial Controls and, are being made only in accordance with authorizations of
both issued by the Institute of Chartered Accountants of India. management and directors of the Company; and (3) provide
Those Standards and the Guidance Note require that we reasonable assurance regarding prevention or timely
comply with ethical requirements and plan and perform the detection of unauthorised acquisition, use, or disposition of
audit to obtain reasonable assurance about whether adequate the Company’s assets that could have a material effect on the
internal financial controls with reference to financial statements financial statements.

Corporate Overview
Statutory Reports
ANNEXURE ‘II’
TO THE INDEPENDENT AUDITOR’S REPORT (CONTD.)
Inherent Limitations of Internal financial controls with Opinion

reference to financial statements In our opinion, the Company has, in all material respects, an
Because of the inherent limitations of internal financial controls adequate internal financial controls with reference to financial
over financial reporting, including the possibility of collusion statements and such internal financial controls with reference
or improper management override of controls, material to IndAS financial statements were operating effectively as at
misstatements due to error or fraud may occur and not be 31st March, 2021, based on the internal financial controls with
detected. Also, projections of any evaluation of the internal reference to IndAS financial statements criteria established
financial controls over financial reporting to future periods by the Company considering the essential components
are subject to the risk that the internal financial control over of internal control stated in the Guidance Note on Audit of
financial reporting may become inadequate because of Internal Financial Controls over Financial Reporting issued by
changes in conditions, or that the degree of compliance with the Institute of Chartered Accountants of India.
the policies or procedures may deteriorate.
For Kalani & Company.

Chartered Accountants
Firm Regn. No. 000722C
S.P. Jhanwar
Partner
Membership No. 074414
Place: Bhilwara
Date: 8th May, 2021

BALANCE SHEET
AS AT 31ST MARCH, 2021
(` in Lacs)
Particulars Note As at As at
No. 31st March, 2021 31st March, 2020
ASSETS
(1) Non-Current Assets
(a) Property, Plant and Equipment 2 105852.02 113807.89
(b) Capital Work-in-Progress 3 156.78 -
(c) Other Intangible Assets 4 120.74 153.29
(d) Other Non-Current Assets 5 1167.98 1647.30
Total Non-Current Assets (A) 107297.52 115608.48
(2) Current Assets
(a) Inventories 6 35468.40 26470.28
(b) Financial Assets
(i) Trade Receivables 7 16584.58 15278.27
(ii) Cash and Cash Equivalents 8 2.06 12.45
(iii) Other Bank Balances 8A 82.76 30.99
(iv) Other Financial Assets 9 91.83 32.38
(c) Current Tax Assets (Net) 10 - 96.06
(d) Other Current Assets 11 8104.92 6997.09
Total Current Assets (B) 60334.55 48917.52
Total Assets (A+B) 167632.07 164526.00
EQUITY AND LIABILITIES
(1) Equity
(a) Equity Share Capital 12 5622.00 5622.00
(b) Other Equity 13 50712.75 43781.32
Total Equity (A) 56334.75 49403.32
(2) LIABILITIES
Non-Current Liabilities
(a) Financial Liabilities
(i) Borrowing 14 56389.36 67632.88
(ii) Other Financial Liabilities 15 - 3.69
(b) Provisions 16 1971.18 1667.32
(c) Deferred Tax Liabilities (Net) 17 5350.95 3327.38
Total Non-Current Liabilities (B) 63711.49 72631.27
(3) Current Liabilities
(a) Financial Liabilities
(i) Borrowing 18 28327.76 28661.35
(ii) Trade Payables 19
- Due to Micro & Small Enterprises 148.04 48.54
- Due to Others 5328.83 4101.25
(iii) Other Financial Liabilities 20 12559.22 9111.85
(b) Other Current Liabilities 21 705.74 405.35
(c) Provisions 22 159.41 163.07
(d) Current Tax Liabilities (Net) 23 356.83 -
Total Current Liabilities (C) 47585.83 42491.41
Total Liabilities (B+C) 111297.32 115122.68
Total Equity and Liabilities (A+B+C) 167632.07 164526.00
Significant Accounting Policies 1
Disclosures and Additional Informations 31-44
In terms of our report of even date For and on behalf of the Board
For KALANI & CO. R. L. NOLKHA DINESH NOLKHA

Chartered Accountants Chairman Managing Director
(Firm Reg. No. 000722C ) (DIN - 00060746) (DIN - 00054658)
S. P. JHANWAR P. MAHESHWARI SUDHIR GARG

Partner Chief Financial Officer Company Secretary & General Manager (Legal)
M. No. 074414 (PAN - ABAPM8005C) (PAN - ABBPK6037F)

Date: 08.05.2021

Corporate Overview
Statutory Reports
STATEMENT OF PROFIT AND LOSS

FOR THE YEAR ENDED 31ST MARCH, 2021
(` in Lacs)
Particulars Note For the year ended For the year ended
I Revenue from Operations 24 162441.22 143806.11
II Other Income 25 189.93 212.79
III Total Income (I+II) 162631.15 144018.90
IV Expenses
Cost of Materials Consumed 26 97190.93 92193.07
Purchase of Stock in Trade - -
Changes in Inventories of Finished Goods, Work-in-Progress and Stock- 27 (2560.42) (218.16)
in-Trade
Employee Benefits Expense 28 11177.71 9432.90
Finance Cost 29 6160.71 5555.72
Depreciation & Amortisation Expense 2,4 9103.28 8069.57
Other Expenses 30 30907.08 25421.33
Total Expenses (IV) 151979.29 140454.43
V Profit before Exceptional Items & Tax 10651.86 3564.47
VI Exceptional Items - -
VII Profit/(Loss) Before Tax (V-VI) 10651.86 3564.47
VIII Tax Expenses
1. Current Tax (Net of Mat Credit) - -
2. Earlier Year - (44.24)
3. Deferred Tax 3764.67 1226.99
IX Profit /(Loss) for the year from Continuing Operations After Tax (VII- 6887.19 2381.72
VIII)
X Other Comprehensive Income
1 Items that will not be reclassified to Profit or Loss (Net of Tax)
Remeasurements of Defined Benefit Plans 129.39 38.71
Income Tax related to Defined Benefit Plans (45.21) (13.53)
84.18 25.18
2 Items that will be reclassified to profit or loss (Net of Tax)
Change in Fair Value of Effective portion of Cash Flow Hedge 456.98 (629.99)
Tax on Cash Flow Hedge Recognised during the year (159.60) 220.14
297.38 (409.85)
Total Other Comprehensive Income for the year, net of Income Tax 381.56 (384.67)
XI Total Comprehensive Income for the period (IX+X) 7268.75 1997.05
XII Earning Per Equity Share (Rupees per Share)
(1) Basic 12.25 4.24
(2) Diluted 12.25 4.24
Significant Accounting Policies 1
Disclosures and Additional Informations 31-44



Date: 08.05.2021

CASH FLOW STATEMENT
(` in Lacs)
Particulars For the year ended For the year ended
31st March, 2021 31st March, 2020
(A) CASH FLOW FROM OPERATING ACTIVITIES :
Net Profit Before Tax & Exceptional Items 10651.86 3564.47
Adjustments for :-
Depreciation 9103.28 8069.57
Interest Expenditure 6160.71 5555.72
Loss/ (Profit) on sale of Property, Plant & Equipment (45.52) (25.08)
Actuarial (loss)/gains on Defined Benefit Obligations 129.39 38.71
Operating Profit Before Working Capital Changes (1) 25999.72 17203.39
Adjustments for :-
Decrease/( Increase) Inventories (8998.12) (3687.74)
Decrease/ (Increase) Trade Receivables (1306.31) (3205.73)
Decrease/ (Increase) Other Current & Non Current Assets (677.07) (767.03)
Increase/(Decrease) Current & Non Current Liabilities 2077.89 1288.99
Total Adjustments (2) (8903.61) (6371.51)
Cash Generated from Operations (1-2) 17096.11 10831.88
Less : Taxes Paid 1609.07 1012.87
Net Cash Generated from Operating Activities (A) 15487.04 9819.01
(B) CASH FLOW FROM INVESTING ACTIVITIES:
Purchase of Property, Plant & Equipment (1189.33) (69694.20)
Capital WIP including Capital Advances (52.95) 47978.36
Receipts of Capital Subsidy 23.06 -
Sale of Property, Plant & Equipment 96.93 44.18
Net Cash Generated/(Used) in Investing Activities (B) (1122.29) (21671.66)
(C) CASH FLOW FROM FINANCING ACTIVITIES:
Proceeds from /(Repayment) of Short Term Borrowing (Net) (333.59) 10117.99
Proceeds from Long Term Borrowings 218.00 12204.37
Repayment of Long Term Borrowings (7761.52) (4329.35)
Interest Paid (6160.71) (5555.72)
Dividend Paid (337.32) (702.75)
Tax on Dividend Paid - (144.45)
Net Cash Generated/(Used) From Financing Activities (C) (14375.14) 11590.09
Net Increase / (Decrease) in Cash & Cash Equivalent (A+B+C) (10.39) (262.56)
Opening Balance of Cash & Cash Equivalent 12.45 275.01
Closing Balance of Cash & Cash Equivalent 2.06 12.45



Date: 08.05.2021

Corporate Overview
Statutory Reports
STATEMENT OF CHANGES IN EQUITY

A. Equity Share Capital

(` in Lacs)
Particulars As at 31 March, 2021
st
As at 31 March, 2020
st
Number (` in Lacs) Number (` in Lacs)

Equity Share Capital
Balance at the beginning of reporting period 56220000 5622.00 56220000 5622.00
Add: Shares issued during the year - - - -
Balance at the closing of reporting period 56220000 5622.00 56220000 5622.00
B. Other Equity
(` in Lacs)
Reserves & Surplus Other Reserves
Effective
Capital
Particulars Securities General Retained Portion of Cash Total
Redemption
Premium Reserve Earning Flow Hedge
Reserve
Reserve
Balance as at 1st April, 2019 150.00 13727.12 5000.00 23609.07 145.28 42631.47
Profit for the year ended 31st March, 2020 2381.72 2381.72
Other Comprehensive Income/ (Expenses)
(OCI)
(a) Remeasurement of Defined Benefit 25.18 25.18
obligation (Net of Tax)
(b) Adjustment for Effective portion of Cash (409.85) (409.85)
Flow Hedge (Net of Tax)
Dividends (Including Dividend Tax) (847.20) (847.20)
Securities Premium -
Transfer to General Reserve -
Balance as at 31st March, 2020 150.00 13727.12 5000.00 25168.77 (264.57) 43781.32
Profit for the year ended 31st March, 2021 6887.19 6887.19
Other Comprehensive Income/ (Expenses)
(OCI)
(a) Remeasurement of Defined Benefit 84.18 84.18
obligation (Net of Tax)
(b) Adjustment for Effective portion of Cash 297.38 297.38
Flow Hedge (Net of Tax)
Dividends (Including Dividend Tax) (337.32) (337.32)
Security Premium -
Transfer to General Reserve -
Balance as at 31st March, 2021 150.00 13727.12 5000.00 31802.82 32.81 50712.75



Date: 08.05.2021

NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST MARCH, 2021 (Contd.)
NOTE NO. 1 - COMPANY INFORMATION AND SIGNIFICANT 3. Current and Non-Current classification
ACCOUNTING POLICIES The Company presents Assets and Liabilities in
A. Corporate Overview the Balance Sheet based on Current/Non-Current
Nitin Spinners Limited (the “Company”), incorporated on classification.
15th October, 1992, is a Company domiciled in India and
An Asset is Current when it is:
limited by shares (CIN: L17111RJ1992PLC006987). The
address of the Company’s Registered Office is 16-17 Km. • Expected to be realised or intended to be sold
Stone, Chittor Road, Hamirgarh, Distt. Bhilwara- (Rajasthan or consumed in normal operating cycle;
311025). The Company is engaged in manufacturing of • Held primarily for the purpose of trading;
Cotton and Blended Yarn, Knitted Fabrics and Woven
Fabrics. The Company is listed at National Stock • Expected to be realised within twelve months
Exchange of India Limited and at BSE Limited. after the reporting period; or
B. Basis of Preparation • Cash or Cash equivalent unless restricted

from being exchanged or used to settle a
These Separate Financial Statements are prepared
liability for at least twelve months after the
on Going Concern basis following Accrual basis of
reporting period.
accounting and comply in all material aspects with the
Indian Accounting Standards (Ind AS) notified under the All other assets are classified as Non-Current.
Companies (Indian Accounting Standards) Rules, 2015
A Liability is Current when:
and subsequent amendments thereto, the Companies
Act, 2013 (to the extent applicable), applicable provisions • It is expected to be settled in normal operating
of the Companies Act, 1956. cycle;
1. Basis of Measurement/Use of Estimates • It is held primarily for the purpose of trading;

(i) The Financial Statements are prepared • It is due to be settled within twelve months
on Accrual basis under the Historical Cost after the reporting period; or
convention except certain Financial Assets and
• There is no unconditional right to defer
Liabilities (including Derivatives instruments)
settlement of the liability for at least twelve
that are measured at fair value.
months after the reporting period.
Historical Cost is generally based on the Fair
Value of the consideration given in exchange All other Liabilities are classified as Non-Current.
for goods and services. Deferred Tax Assets/Liabilities are classified as
Fair Value is the price that would be received Non-Current.
to sell an asset or paid to transfer a Liability
C. Significant Accounting Policies
in an orderly transaction between market
A summary of the significant Accounting Policies applied
participants at the measurement date.
in the preparation of the Financial Statements are as
(ii) The preparation of Financial Statements
given below. These Accounting Policies have been
requires judgments, estimates and assumptions
applied consistently to all periods presented in the
that affect the reported amount of Assets and
Financial Statements.
Liabilities, disclosure of Contingent Liabilities
on the date of the Financial Statements and the 1. Property, Plant & Equipment
reported amount of Revenues and Expenses 1.1. Initial Recognition and Measurement
during the reporting period. Difference
An item of Property, Plant and Equipment is
between the actual results and estimates are
recognised as an Asset if and only if it is probable
recognised in the period in which the results
that future economic benefits associated with the
are known/ materialised.
item will flow to the Company and the cost of the
2. Functional and Presentation Currency item can be measured reliably.
These Financial Statements are presented in Indian Items of Property, Plant and Equipment are measured
Rupees (INR), which is the Company’s functional at Cost less Accumulated Depreciation/Amortisation
currency. All financial information presented in INR and Accumulated impairment losses. Cost includes
has been rounded to the nearest Lacs (up to two expenditure that is directly attributable to bringing
decimals), except as stated otherwise. the asset, inclusive of non-refundable taxes &

Corporate Overview
Statutory Reports

duties, to the location and condition necessary for it Where it is probable that future economic
to be capable of operating in the manner intended benefits deriving from the cost incurred will flow
by management. to the enterprise and the cost of the item can be
measured reliably, subsequent expenditure on a
When parts of an item of property, plant and
PPE along-with its unamortised depreciable amount
equipment have different useful lives, they are
is charged off prospectively over the revised useful
recognised separately.
life determined by technical assessment.
Items of spare parts, stand-by equipment and
In circumstance, where a property is abandoned,
servicing equipment which meet the definition of
the cumulative capitalised costs relating to the
Property, Plant and Equipment are capitalised.
property are written off in the same period.
1.2. Subsequent Costs
2. Capital Work-in-Progress
Subsequent expenditure is recognised as an The cost of self-constructed assets includes the cost
increase in the carrying amount of the asset when of materials & direct labour, any other costs directly
it is probable that future economic benefits deriving attributable to bringing the assets to the location
from the cost incurred will flow to the enterprise and and condition necessary for it to be capable of
the cost of the item can be measured reliably. operating in the manner intended by management
The cost of replacing part of an item of Property, and borrowing costs.
Plant and Equipment is recognised in the carrying Expenses directly attributable to construction of
amount of the item if it is probable that the future property, plant and equipment incurred till they
economic benefits embodied within the part will are ready for their intended use are identified
flow to the Company and its cost can be measured and allocated on a systematic basis on the cost of
reliably. The carrying amount of the replaced part is related assets.
derecognised. The costs of the day-to-day servicing
of Property, Plant and Equipment are recognised in 3. Intangible Assets and Intangible Assets under
Statement of Profit or Loss as and when incurred. Development
3.1. Initial recognition and measurement
1.3. Derecognition
An Intangible Asset is recognised if and only if it
Property, Plant and Equipment are derecognised
is probable that the expected future economic
when no future economic benefits are expected
benefits that are attributable to the asset will flow
from their use or upon their disposal. Gains and
to the Company and the cost of the asset can be
Losses on disposal of an item of Property, Plant
measured reliably.
and Equipment are determined by comparing the
proceeds from disposal with the carrying amount of Intangible assets that are acquired by the Company,
Property, Plant and Equipment, and are recognised which have finite useful lives, are recognised at
in the Statement of Profit and Loss. cost. Subsequent measurement is done at cost
less accumulated amortisation and accumulated
1.4. Depreciation
impairment losses. Cost includes any directly
Assets are depreciated using straight line method attributable incidental expenses necessary to make
over the estimated useful life of the asset as specified the assets ready for its intended use.
in Part “C” of Schedule II of Companies Act, 2013
Expenditure on development activities is capitalised
except for Plant & Machinery (other than Laboratory
only if the expenditure can be measured reliably, the
Equipments, Fire Fighting Equipments and Tools
product or process is technically and commercially
&Equipments) whose estimated useful life is taken
feasible, future economic benefits are probable
as 13 years (Triple Shift) after retaining residual life
and the Company intends to and has sufficient
of 5% of original cost. Assets residual values and
resources to complete development and to use or
useful lives are reviewed at each financial year end
sell the asset.
considering the physical condition of the assets.
Expenditure incurred which are eligible for
Depreciation on additions to/deductions from
capitalisations under intangible assets are carried
Property, Plant & Equipment during the year is
as intangible assets under development till they are
charged on pro-rata basis from/up to the date on
ready for their intended use.
which the asset is available for use/disposed.

3.2. Subsequent Costs 5. Statement of Cash Flows
Subsequent expenditure is recognised as an Cash Flow Statement has been prepared in

increase in the carrying amount of the asset when accordance with the Indirect method prescribed in
it is probable that future economic benefits deriving Ind AS 7 ‘Statement of Cash Flows’.
from the cost incurred will flow to the enterprise and 6. Inventories
the cost of the item can be measured reliably.
Inventories are valued at the lower of cost and net
3.3. Derecognition realisable value. Cost includes cost of purchase,
cost of conversion and other costs incurred in
An Intangible Asset is derecognised when no future
bringing the inventories to their present location
economic benefits are expected from their use or
and condition. Costs of purchased inventory are
upon their disposal. Gains and Losses on disposal
determined after deducting rebates and discounts.
of an item of Intangible Assets are determined
Net realisable value is the estimated selling price
by comparing the proceeds from disposal with
in the ordinary course of business, less estimated
the carrying amount of Intangible Assets and are
costs of completion and the estimated costs
recognised in the Statement of Profit and Loss.
necessary to make the sale.
3.4. Amortisation
Spare parts other than those capitalised as Property,
Intangible Assets having definite life is amortised on Plant and Equipment are carried as inventory.
straight line method in their useful lives. Useful life
The diminution in the value of obsolete,
of Computer Software is estimated at five years.
unserviceable and surplus stores & spares is
4. Borrowing Cost ascertained on review and provided for.
Borrowing costs that are directly attributable to the 7. Cash and Cash Equivalent
acquisition, construction, exploration, development
Cash and cash equivalent in the Balance Sheet
or erection of qualifying assets are capitalised as
comprises Cash at Banks, Cash on Hand and Short-
part of cost of such asset until such time the assets
Term Deposits with an original maturity of three
are substantially ready for their intended use.
months or less, which are subject to insignificant risk
Qualifying assets are assets which take a substantial
of change in value.
period of time to get ready for their intended use or
sale. Capitalisation of borrowing costs ceases when 8. Government Grants
substantially all the activities necessary to prepare Government grants are recognised where there is a
the qualifying assets for their intended uses are reasonable assurance that the grant will be received
complete. Borrowing costs consist of: and the Company will comply with all attached
(a) interest expense calculated using the conditions. When the government grant relates to
effective interest method as described in Ind an asset, the asset is disclosed by deducting that
AS 109 – ‘Financial Instruments’, grant in arriving at the carrying amount of that asset.
Government grants that compensate the Company
(b) finance charges in respect of finance for expenses incurred are recognised in the
leases recognised in accordance with Ind statement of profit and loss, as income or deduction
AS 116 – ‘Leases’, from the relevant expense, on a systematic basis in
(c) exchange differences arising from foreign the periods in which the expense is recognised.
currency borrowings to the extent that they 9. Provisions, Contingent Liabilities and Contingent
are regarded as an adjustment to interest Assets
costs and,
A provision is recognised if, as a result of a past event,
(d) other costs that an entity incurs in connection the Company has a present legal or constructive
with the borrowing of funds. Income earned obligation that can be estimated reliably, and it is
on temporary investment of the borrowings probable that an outflow of economic benefits will
pending their expenditure on the qualifying be required to settle the obligation. If the effect of
assets is deducted from the borrowing costs the time value of money is material, provisions are
eligible for capitalisation. determined by discounting the expected future
All other borrowing costs are charged to revenue as cash flows at a pre-tax rate that reflects current
and when incurred. market assessments of the time value of money and

Corporate Overview
Statutory Reports

the risks specific to the liability. When discounting Statement of Profit and Loss in the year in which
is used, the increase in the provision due to the it arises.
passage of time is recognised as a finance cost.
Non-monetary items are measured in terms
The amount recognised as a provision is the best of historical cost in a foreign currency are
estimate of the consideration required to settle the translated using the exchange rate at the date of
present obligation at reporting date, taking into the transaction.
account the risks and uncertainties surrounding
11. Revenue Recognition
the obligation.
The Company derives revenues primarily from
When some or all of the economic benefits required business of textiles. Effective 1st April, 2018, the
to settle a provision are expected to be recovered Company adopted Ind AS 115 “Revenue from
from a third party, the receivable is recognised as Contracts with Customers” using cumulative catch-
an asset if it is virtually certain that reimbursement up transition method, applied to contracts that were
will be received and the amount of the receivable not completed as of 1st April, 2018. In accordance
can be measured reliably. The expense relating to a with the cumulative catch-up transition method,
provision is presented in the statement of profit and the comparatives have not been retrospectively
loss net of any reimbursement. adjusted. The following is a summary of new and/
Contingent Liabilities are possible obligations or revised significant accounting policies related
that arise from past events and whose existence to revenue recognition. Refer Note1“Significant
Accounting Policies,” in the Company’s 2018 Annual
will only be confirmed by the occurrence or non-
Report for the policies in effect for Revenue prior to
occurrence of one or more future events not
1st April, 2018.
wholly within the control of the Company. Where
it is not probable that an outflow of economic Revenue is recognised upon transfer of control of
benefits will be required, or the amount cannot promised products or services to customers in an
be estimated reliably, the obligation is disclosed amount that reflects the consideration we expect to
as a Contingent Liability, unless the probability of receive in exchange for those products or services.
outflow of economic benefits is remote. Contingent
Ind AS 115 moves away from the “transfer of risk and
Liabilities are disclosed on the basis of judgment
rewards” approach and introduces a new “transfer
of the management/independent experts. These
of control” approach delivered through the new
are reviewed at each balance sheet date and
five-step model described as follows:
are adjusted to reflect the current management
estimate. 1. Identify the contract with a customer.
Contingent Assets are possible assets that arise from 2. Identify the separate performance obligations
in the contract.
past events and whose existence will be confirmed
only by the occurrence or non-occurrence of one 3. Determine the transaction Price.
or more uncertain future events not wholly within 4. Allocate the transaction price to the separate
the control of the Company. Contingent Assets are performance obligations.
disclosed in the financial statements when inflow
5. Recognise revenue when (or as) each
of economic benefits is probable on the basis of
performance obligation is satisfied.
judgment of management. These are assessed
continually to ensure that developments are At contract inception, an entity assesses the goods
appropriately reflected in the financial statements. or services promised in a contract with a customer
and identify each performance obligation promised
10. Foreign Currency Transactions and Translation
to be transferred to the customer either:
Transactions in foreign currencies are initially
(a) a good or service (or a bundle of goods or
recorded at the functional currency rates at the date
services) that is distinct; or
the transaction first qualifies for recognition.
(b) a series of distinct goods or services that are
Monetary Assets and Liabilities denominated in
substantially the same and that have the same
foreign currencies are translated at the functional
pattern of transfer to the customer.
currency spot rates of exchange at the reporting
date. Exchange differences arising on settlement The Company classifies the right to consideration
or translation of monetary items are recognised in in exchange for deliverables as either a receivable

or as a contract asset. A receivable is a right to discounts the estimated future cash receipts
consideration that is unconditional upon passage over the expected life of the financial instrument
of time .Revenues in excess of billings is recorded or a shorter period, where appropriate, to the
as contract asset and is classified as a financial net carrying amount of the financial asset. When
asset for these cases a right to consideration is calculating the effective interest rate, the Company
unconditional upon passage of time. This would estimates the expected cash flows by considering
result in the timing of revenue recognition being all the contractual terms of the financial instrument
different from the time of billing the customers. (for example, prepayment, extension, call and similar
Company classifies amount received as advance options) but does not consider the expected credit
from customers against sales as contract liability. losses. Interest income is included in other income
in the statement of profit or loss.
Trade receivables and unbilled revenues are
presented net of impairment in the Balance Sheet. 11.6 Dividend
11.1 Sale of Goods Dividend Income is recognised when the
Company’s right to receive is established which
Revenue from the sale of goods is recognised upon
transfer of control of the goods have passed to the generally occurs when the shareholders approve
buyer, which generally coincides with dispatch. the dividend.
Revenue from export sales are recognised 11.7 Income other than Interest and Dividend
on shipment basis. Revenue from the sale of
goods is measured at an amount that reflects the Other income is recognised in the Statement of Profit
consideration we expect to receive in exchange and Loss when increase in future economic benefits
for those products (i.e. the transaction price). The related to an increase in an asset or a decrease of a
Company presents revenues net of indirect taxes, liability has arisen that can be measured reliably.
returns and allowances, trade discounts and volume 12. Employee Benefits
rebates in its Statement of Profit and Loss. Inter-
12.1. Short Term Benefit
divisional sales comprising of sale of power for
captive consumption is reduced from gross turnover Short-term employee benefit obligations are
in arriving Net Turnover. measured on an undiscounted basis and are
booked as an expense as the related service
11.2 Rendering of services
is provided.
Revenue from Job work services is recognised
A liability is recognised for the amount expected to be
based on the services rendered in accordance with
paid under performance related pay if the Company
the terms of contracts.
has a present legal or constructive obligation to
11.3 Other Export Benefit pay this amount as a result of past service provided
by the employee and the obligation can be
Export benefits are accounted for in the year of
estimated reliably.
export at net market realisable value.
12.2. Post-Employment Benefits
11.4 Other Income
Employee Benefit that are payable after the
Revenue from transactions or events that do not
arise from a contract with a customer not in the completion of employment are Post-Employment
scope of Ind AS 115 are continue to be recognised in Benefit (other than termination benefit). These are
accordance with the other standards. Such Income of two types:
includes Interest and Dividend income which are 12.2.1.Defined Contribution Plans
dealt with in Ind AS 109 and Rental income to be
accounted as per Ind AS 116. Defined contribution Plans are those plans in
which an entity pays fixed contribution into
11.5 Interest Income separate entities and will have no legal or
For all financial instruments measured at amortised constructive obligation to pay further amounts.
cost and interest-bearing financial assets classified Provident Fund and Family Pension Funds are
as fair value through other comprehensive income, Defined Contribution Plans in which Company
interest income is recorded using the effective pays a fixed contribution and will have no
interest rate (EIR). The EIR is the rate that exactly further obligation.

Corporate Overview
Statutory Reports

12.2.2.Defined Benefit Plans other comprehensive income or equity, in which it is

recognised in OCI or Equity.
A defined benefit plan is a post-employment
benefit plan other than a defined contribution Current Tax is the expected tax payable on the
plan. taxable income for the year, using tax rates enacted
or substantively enacted and as applicable at the
Company pays Gratuity as per provisions of
reporting date, and any adjustment to tax payable
the Gratuity Act, 1972. The Company’s net
in respect of previous years. Current Income Taxes
obligation in respect of defined benefit plans
are recognised under ‘Income Tax payable’ net of
is calculated separately for each plan by
payments on account, or under ‘Tax receivables’
estimating the amount of future benefit that
where there is a debit balance.
employees have earned in return for their
service in the current and prior periods; that Deferred Tax is recognised using the Balance
benefit is discounted to determine its present Sheet method, providing for temporary differences
value. Any unrecognised past service costs between the carrying amounts of assets and
and the fair value of any plan assets are liabilities for financial reporting purposes and the
deducted. The discount rate is based on the amounts used for taxation purposes. Deferred Tax
prevailing market yields of Indian government is measured at the tax rates that are expected to
securities as at the reporting date that have be applied to temporary differences when they
maturity dates approximating the terms of reverse, based on the laws that have been enacted
the Company’s obligations and that are or substantively enacted by the reporting date.
denominated in the same currency in which Deferred Tax Assets and Liabilities are offset if
the benefits are expected to be paid. there is a legally enforceable right to offset current
tax liabilities and assets, and they relate to income
The calculation is performed annually by a
taxes levied by the same tax authority on the same
qualified actuary using the projected unit
taxable entity, or on different tax entities, but they
credit method. When the calculation results in
intend to settle Current Tax Liabilities and Assets on
a liability to the Company, the present value of
a net basis or their tax assets and liabilities will be
liability is recognised as provision for employee
realised simultaneously.
benefit. Any actuarial gains or losses in respect
of gratuity are recognised in OCI in the period Deferred Tax is recognised in Statement of Profit
in which they arise. and Loss except to the extent that it relates to items
recognised directly in OCI or Equity, in which case it
12.3 Other Long-Term Employee Benefits
is recognised in OCI or Equity.
Benefits under the Company’s Leave Encashment
A Deferred Tax Asset is recognised to the extent
Scheme constitute other long-term employee
that it is probable that future taxable profits will be
benefits. The Company’s net obligation in respect
available against which the temporary difference
of leave encashment is the amount of future benefit
can be utilised. Deferred tax assets are reviewed
that employees have earned in return for their
at each reporting date and are reduced to the
service in the current and prior periods; that benefit
extent that it is no longer probable that the related
is discounted to determine its present value, and
tax benefit will be realised. Minimum Alternate Tax
the fair value of any related assets is deducted. The
credit is recognised as deferred tax asset only when
discount rate is based on the prevailing market yields
and to the extent there is convincing evidence that
of Indian government securities as at the reporting
the Company will pay normal income tax during the
date that have maturity dates approximating the
specified period. Such asset is reviewed at each
terms of the Company’s obligations. The calculation Balance Sheet date and the carrying amount of the
is performed using the projected unit credit method. MAT credit asset is written down to the extent there
Any actuarial gains or losses are recognised in profit is no longer a convincing evidence to the effect that
or loss in the period in which they arise. the Company will pay normal Income Tax during the
13. Income Taxes specified period.
Income Tax Expense comprises Current and Additional Income Taxes that arise from the
Deferred Tax. Current Tax Expense is recognised distribution of dividends are recognised at the same
in Statement of Profit and Loss A/c except to the time that the liability to pay the related dividend
extent that it relates to items recognised directly in is recognised.

14. Leases:
The lease liability is initially measured at amortised
14.1 Recognition:
cost at the present value of the future lease
The Company as a Lessee payments. The lease payments are discounted
The Company’s Lease Asset classes primarily using the interest rate implicit in the lease or, if
consist of Leases for Land and Buildings. The not readily determinable, using the incremental
Company assesses whether a contract contains a borrowing rates in the country of domicile of these
lease, at inception of a contract. A contract is, or leases. Lease liabilities are remeasured with a
contains, a lease if the contract conveys the right to corresponding adjustment to the related right of
control the use of an identified asset for a period of use asset if the Company changes its assessment
time in exchange for consideration. if whether it will exercise an extension or a
termination option.
To assess whether a contract conveys the right to
control the use of an identified asset, the Company Lease liability and ROU asset have been separately
assesses whether: presented in the Balance Sheet and lease payments
have been classified as financing cash flows.
(i) the contract involves the use of an identified
asset 14.2 Accounting for
(ii) the Company has substantially all of the 14.2.1 Operating Leases
economic benefits from use of the asset Leases in which a significant portion of the risks
through the period of the lease and and rewards of ownership are not transferred to
the Company as lessee are classified as operating
(iii) the Company has the right to direct the use of
lease. Payments made under operating leases are
the asset.
recognised as an expense over the lease term.
At the date of commencement of the lease, the 14.2.2 Finance Lease
Company recognises a right-of-use asset (“ROU”)
Leases of Property, Plant and Equipment where
and a corresponding lease liability for all lease
the Company, as lessee has substantially all risks
arrangements in which it is a lessee, except for
and rewards of ownership are classified as finance
leases with a term of twelve months or less (short-
lease. On initial recognition, assets held under
term leases) and low value leases. For these short-
finance leases are recorded as Property, Plant and
term and low value leases, the Company recognises
Equipment and the related liability is recognised
the lease payments as an operating expense on a
under borrowings. At inception of the lease, finance
straight-line basis over the term of the lease.
leases are recorded at amounts equal to the fair
Certain lease arrangements includes the options value of the leased asset or, if lower, the present
to extend or terminate the lease before the end value of the minimum lease payments. Minimum
of the lease term. ROU assets and lease liabilities lease payments made under finance leases are
includes these options when it is reasonably certain apportioned between the finance expense and the
that they will be exercised. The right-of-use assets reduction of the outstanding liability.
are initially recognised at cost, which comprises
15. Impairment of Non-Financial Assets
the initial amount of the lease liability adjusted
for any lease payments made at or prior to the The carrying amounts of the Company’s
commencement date of the lease plus any initial non-financial assets are reviewed at each reporting
direct costs less any lease incentives. They are date to determine whether there is any indication of
subsequently measured at cost less accumulated impairment considering the provisions of Ind AS 36
depreciation and impairment losses. ‘Impairment of Assets’. If any such indication exists,
then the asset’s recoverable amount (higher of its
Right-of-use assets are depreciated from the
fair value less costs to disposal or its value in use)
commencement date on a straight-line basis over
is estimated.
the shorter of the lease term and useful life of the
underlying asset. Right of use assets are evaluated An impairment loss is recognised if the carrying
for recoverability whenever events or changes in amount of an asset or its Cash Generating Unit
circumstances indicate that their carrying amounts (CGU) exceeds its estimated recoverable amount.
may not be recoverable. Impairment losses are recognised in profit or loss.

Corporate Overview
Statutory Reports

Impairment losses recognised in prior periods are assets not recorded at fair value through profit
assessed at each reporting date for any indications or loss, transaction costs that are attributable
that the loss has decreased or no longer exists. to the acquisition or issue of the financial asset
An impairment loss is reversed if there has been
Impairment of Financial Assets
a change in the estimates used to determine the
recoverable amount which is only to the extent that In accordance with Ind-AS 109, the Company
the asset’s carrying amount does not exceed the applies expected credit loss (ECL) model for
carrying amount that would have been determined, measurement and recognition of impairment
net of depreciation or amortisation, if no impairment loss on the financial assets and credit
loss had been recognised. risk exposure.
16. Dividends For recognition of impairment loss on financial

assets and risk exposure, the Company
Dividends and Interim dividends payable to a
determines that whether there has been a
Company’s shareholders are recognised as
significant increase in the credit risk since initial
changes in equity in the period in which they are
recognition. If credit risk has not increased
approved by the shareholders’ meeting and the
significantly, 12-month ECL is used to provide
Board of Directors respectively.
for impairment loss. However, if credit risk has
17. Material Prior Period Errors increased significantly, lifetime ECL is used. If,
Material prior period errors are corrected in a subsequent period, the credit quality of the
retrospectively by restating the comparative instrument improves then the entity reverts to
amounts for the prior periods presented in which recognizing impairment loss allowance based
the error occurred. If the error occurred before on 12-month ECL.
the earliest prior period presented, the opening In respect of Trade receivables or any financial
balances of assets, liabilities and equity for the asset that result from transactions that are
earliest prior period presented, are restated. within the scope of Ind AS 115, Company
follows ‘simplified approach’ for recognition of
18. Earnings Per Share
impairment loss allowance within the scope of
Basic earnings per equity share is computed by
Ind AS 115, if they do not contain a significant
dividing the net profit or loss attributable to equity
financing component. It recognises impairment
shareholders of the Company by the weighted
loss allowance based on lifetime ECLs at each
average number of equity shares outstanding
reporting date, right from its initial recognition.
during the financial year.
b. Financial Liabilities
Diluted earnings per equity share is computed by
dividing the net profit or loss attributable to equity Initial recognition and measurement
shareholders of the Company by the weighted All Financial Liabilities are recognised at fair
average number of equity shares considered for value and in case of loans, net of directly
deriving basic earnings per equity share and also attributable transaction cost. Fees of recurring
the weighted average number of equity shares nature are directly recognised in the Statement
that could have been issued upon conversion of all of Profit and Loss as finance cost.
dilutive potential equity shares.
Subsequent Measurement
19. Financial Instruments
Financial Liabilities are carried at amortised cost
A financial instrument is any contract that gives using the effective interest method. Amortised
rise to a financial asset of one entity and a financial cost is calculated by taking into account any
liability or equity instrument of another entity. discount or premium on acquisition and any
a. Financial Assets material transaction that are any integral part of
the EIR. For trade and other payables maturing
Initial recognition and measurement
within one year from the balance sheet date,
All financial assets are recognised initially at the carrying amounts approximate the fair
fair value plus or minus, in the case of financial value of the instrument.

Derecognition b) Fair Value Hedge
A Financial Liability is derecognised when the Changes in the fair value of hedging
obligation under the liability is discharged or instruments and hedged items that are
cancelled or expired. When an existing financial designated and qualify as fair value hedges are
liability is replaced by another from the same recorded in the Statement of Profit and Loss. If
lender on substantially different terms, or the the hedging relationship no longer meets the
terms of an existing liability are substantially criteria for hedge accounting, the adjustment
modified, such an exchange or modification to the carrying amount of a hedged item for
is treated as the derecognition of the original which the effective interest method is used is
liability and the recognition of a new liability. amortised to Statement of Profit and Loss over
The difference in the respective carrying the period of maturity.
amounts is recognised in the Statement of
20. CSR Expenditure
Profit and Loss.
Amount spent on CSR activities during the year is
c. Derivative Financial Instruments charged to Statement of Profit & Loss, if the same
The Company uses forwards to mitigate the is of revenue nature. If the expenditure is of such
risk of changes in interest rates, exchange nature, which may give rise to a capital asset,
rates and commodity prices. Such derivative the same is recognised in the Balance Sheet as
financial instruments are initially recognised “CSR Assets” under respective head of Property,
at fair value on the date on which a derivative Plant & Equipment.
contract is entered into and are also D. Major Estimates made in preparing Financial
subsequently measured at fair value on the Statements:
reporting date. Derivatives are carried as
financial assets when the fair value is positive 1. Useful life of Property, Plant and Equipment and
and as financial liabilities when the fair value Intangible Assets
is negative. Any gains or losses arising from The estimated useful life of Property, Plant and
changes in the fair value of derivatives are Equipment is based on a number of factors including
taken to cash flow hedge reserve through the effects of obsolescence, demand, competition
Statement of Other Comprehensive Income. and other economic factors (such as the stability of
the industry and known technological advances)
These are accounted for as follows:
and the level of maintenance expenditures required
a) Cash flow hedge to obtain the expected future cash flows from
the asset.
When derivative is designated as a cash flow
hedging instrument, the effective portion of Useful life of the assets other than Plant and
changes in the fair value of the derivative is machinery (except Laboratory Equipments, Fire
recognised in the cash flow hedging reserve Fighting Equipments and Tools &Equipments) are
being part of other comprehensive income. in accordance with Schedule II of the Companies
Any ineffective portion of changes in the Act, 2013.
fair value of the derivative is recognised
The Company reviews at the end of each reporting
immediately in the Statement of Profit and
date the useful life of property, plant and equipment,
Loss. If the hedging instrument expires or is
and are adjusted prospectively, if appropriate.
sold, terminated or exercised, the cumulative
gain or loss previously recognised in the Intangible assets are being amortised on straight
cash flow hedging reserve is transferred to line basis over the period of five years.
the Statement of Profit and Loss upon the 2. Post-Employment Benefit Plans
occurrence of the underlying transaction. If the
Employee benefit obligations are measured on
forecasted transaction is no longer expected
the basis of actuarial assumptions which include
to occur, then the amount accumulated in cash
mortality and withdrawal rates as well as assumptions
flow hedging reserve is reclassified in the
concerning future developments in discount rates,
Statement of Profit and Loss.

Corporate Overview
Statutory Reports

the rate of salary increases and the inflation rate. COVID-19 on the carrying amounts of receivables,
The Company considers that the assumptions and inventory. In developing the assumptions
used to measure its obligations are appropriate relating to the possible future uncertainties in
and documented. However, any changes in these the global economic conditions because of this
assumptions may have a material impact on the pandemic, the Company, as at the date of approval
resulting calculations. of these financial statements has used internal and
external sources of information including credit
3. Provisions and Contingencies
reports and related information, economic forecasts.
The assessments undertaken in recognizing The Company has performed sensitivity analysis
provisions and contingencies have been made in on the assumptions used and based on current
accordance with Ind AS 37, ‘Provisions, Contingent estimates expects the carrying amount of these
Liabilities and Contingent Assets’. The evaluation of assets will be recovered. The impact of COVID-19
the likelihood of the contingent events requires best on the Company’s financial statements may differ
judgment by management regarding the probability from that estimated as at the date of approval of
of exposure to potential loss. In case of change these financial statements.
in the circumstances the following unforeseeable
developments, the likelihood could alter.
4. Estimation of uncertainties relating to the Global

Health Pandemic from COVID-19
The Company has considered the possible effects
that may result from the pandemic relating to

NOTE 2 : PROPERTY, PLANT AND EQUIPMENT
88
(` in Lacs)
Particulars Gross Carrying Amount Depreciation/Amortisation Net Carrying Amount
As at 1st April, Addition Deduction As at 31st As at 1st April, For the Deduction As at 31st As at 31st As at 31st
2020 March, 2021 2020 Year March, 2021 March, 2021 March, 2020
Tangible Assets
Free Hold Land 877.93 28.66 - 906.59 - - - - 906.59 877.93
Lease Hold Land 135.06 - - 135.06 4.67 1.31 - 5.98 129.08 130.39
Annual Report 2020-21

Buildings 31582.58 391.24 - 31973.82 2498.80 1080.26 - 3579.06 28394.76 29083.78
Plant & Machinery 98809.50 693.54 182.48 99320.56 19388.72 7414.43 120.18 26682.97 72637.59 79420.78
Electric Installations 3512.89 3.37 0.10 3516.16 732.56 326.12 - 1058.68 2457.48 2780.33
Furniture & Fixtures 1146.71 30.32 - 1177.03 133.14 110.48 - 243.62 933.41 1013.57
Office Equipments 405.18 31.06 0.19 436.05 134.40 84.32 - 218.72 217.33 270.78
Vehicles 373.12 5.80 40.00 338.92 149.55 45.09 28.12 166.52 172.40 223.57
Right of Use- Building 10.14 - - 10.14 3.38 3.38 - 6.76 3.38 6.76
Total 136853.11 1183.99 222.77 137814.33 23045.22 9065.39 148.30 31962.31 105852.02 113807.89
Previous Year 67390.86 69540.95 78.70 136853.11 15066.34 8038.48 59.60 23045.22 113807.89 52324.52
2.1 All Property, Plant and Equipments mentioned above (except PPE under CSR and Right of Use - Building) having net block of ` 105389.43 Lacs (Previous Year - `
113330.62 Lacs) are held as security towards Borrowings as specified in Note 14

2.2 Deduction in Plant & Machinery include ` 23.06 Lacs (Previous Year - ` Nil) received as Capital Subsidy received from Government of Rajasthan under Rajasthan
Investment Promotion Scheme for Installation of Zero Liquid Discharge Effluent Treatment Plant.
2.3 Details of Property, Plant and Equipment under CSR included in above are as follows:
(` in Lacs)

As at 1st April, Addition Deduction As at 31st As at 1st For the Deduction As at 31st As at 31st As at 31st
2020 March, 2021 April, 2020 Year March, 2021 March, 2021 March, 2020
Lease Hold Land 135.06 - - 135.06 4.67 1.31 - 5.98 129.08 130.39
Building 298.26 - - 298.26 5.91 4.72 - 10.63 287.63 292.35
Electric Installation 26.42 - - 26.42 3.60 2.51 - 6.11 20.31 22.82
Furniture & Fixtures 29.45 - - 29.45 4.50 2.76 - 7.26 22.19 24.95
Total 489.19 - - 489.19 18.68 11.30 - 29.98 459.21 470.51
Previous Year 352.16 137.03 - 489.19 7.56 11.12 - 18.68 470.51 344.60
2.4 Information regarding Historical cost of Property, Plant and Equipment based on the previous GAAP prior to date of transition to Ind AS is as follows:
(` in Lacs)
Particulars Free Hold Lease Hold Buildings Plant & Electric Furniture Office Vehicles Right of Use Total
Land Land Machinery Installation & Fixtures Equipments Building
Gross Block as on 1st April, 2020 877.93 135.06 33785.30 119176.29 4757.15 1192.16 499.51 436.06 10.14 160869.60
Addition during the year 2020-21 28.66 - 391.24 693.54 3.37 30.32 31.06 5.80 - 1183.99
Deduction during the year 2020-21 - - - (521.54) (1.91) - (3.90) (50.36) - (577.71)
Total Historical Cost as on 31st 906.59 135.06 34176.54 119348.29 4758.61 1222.48 526.67 391.50 10.14 161475.88
March, 2021
NOTE 3 : CAPITAL WORK IN PROGRESS
(` in Lacs)
Particulars As at 1st Addition Deduction/ Capitalised As at 31st
April, 2020 Adjustements March, 2021
Building - 88.04 - - 88.04
Electric Installation - 0.71 - - 0.71
Plant & Machinery - 68.03 - - 68.03
Total - 156.78 - - 156.78
NOTE 4 : OTHER INTANGIBLE ASSETS

(` in Lacs)
st st
As at 1 April, Addition Deduction As at 31st As at 1 April, For the Deduction As at 31st As at 31st As at 31st
2020 March, 2021 2020 Year March, 2021 March, 2021 March, 2020
Computer Software 219.87 5.34 - 225.21 66.58 37.89 - 104.47 120.74 153.29
Total 219.87 5.34 - 225.21 66.58 37.89 - 104.47 120.74 153.29
Previous Year 66.62 153.25 - 219.87 35.49 31.09 - 66.58 153.29 31.13
NOTE 4.1 : NFORMATION REGARDING HISTORICAL COST OF INTANGIBLE ASSETS BASED ON THE PREVIOUS GAAP PRIOR TO DATE OF TRANSITION TO IND AS IS
AS FOLLOWS:
(` in Lacs)
Particulars Computer Software
Gross Block as on 1st April, 2020 227.84
Addition during the year 2020-21 5.34
Deduction during the year 2020-21 -
Total Histrorical Cost as on 31st March, 2021 233.18

Statutory Reports
Corporate Overview
89
NOTE 5 : OTHER NON CURRENT ASSETS

(` in Lacs)
Particulars As at As at
Security Deposits 884.92 1222.31
Deferred Transaction Cost 125.25 163.35
Capital Advances 157.81 261.64
Total 1167.98 1647.30
NOTE 6 : INVENTORIES
(` in Lacs)
Raw Material 23339.65 17023.49
Work-In-Process 3381.38 2962.61
Finished Goods 7506.39 5364.74
Stores and Spares 718.06 772.94
Fuel 522.92 346.50
Total 35468.40 26470.28
NOTE 6.1 : Inventory has been valued as per the Accounting Policy
NOTE 6.2 : RAW MATERIAL CONSIST OF

(` in Lacs)
Cotton 22182.45 16513.06
Yarn 321.75 68.01
Polyster 573.80 147.91
Dyes & Chemical 261.65 294.51
Total 23339.65 17023.49
NOTE 6.3 : FINISHED GOODS CONSIST OF

(` in Lacs)
Yarn 3959.41 2556.64
Fabric 3112.10 2579.26
Saleable Waste 434.88 228.84
Total 7506.39 5364.74
NOTE 7 : CURRENT FINANCIAL ASSETS - TRADE RECEIVABLES

(` in Lacs)
Secured
Considered Good - -
Unsecured
Considered Good 16152.00 15278.27
Receivables having Significant Increase in Credit Risks 865.16 -
Less : - Provision for Doubtful Debts 432.58 -
Net 432.58 -
Total 16584.58 15278.27
Note 7.1 : Ageing and other information has been depicted in Note no. 38

Corporate Overview
Statutory Reports

NOTE 8 : CURRENT FINANCIAL ASSETS - CASH AND CASH EQUIVALENTS

(` in Lacs)
Cash in Hand 1.95 9.64
Balance with Banks in :
Current Accounts 0.11 2.81
Total 2.06 12.45
NOTE 8A : CURRENT FINANCIAL ASSETS - BANK BALANCES OTHER THAN CASH AND CASH EQUIVALENTS
(` in Lacs)
Unclaimed Dividend Accounts 31.36 30.99
Fixed Deposits 51.40 -
Total 82.76 30.99
1) The yearwise details of Unclaimed Dividend is given in Note No. 43.

2) Fixed Deposits are maturing with in 12 months and pledged with bank as margin against opening of Letter of Credit.
NOTE 9 : OTHER CURRENT FINANCIAL ASSETS

(` in Lacs)
Derivative Assets (Net) 50.45 -
Advances to Employees 41.38 32.38
Total 91.83 32.38
NOTE 10 : CURRENT TAX ASSETS

(` in Lacs)
Advance Income Tax (Net) - 96.06
Total - 96.06
NOTE 11 : OTHER CURRENT ASSETS

(` in Lacs)
Advances to Suppliers 1165.99 925.38
Prepaid Expenses 188.42 115.27
Amount Receivable under TUFS /RIPS 4133.79 2992.15
Income Tax Refundable 118.26 2.22
VAT & GST Credit Receivables 1725.41 2243.57
GST Refundable 523.69 435.89
Other Receivables* 249.36 282.61
Total 8104.92 6997.09
* Other receivable includes amount of Export Incentive and Duty drawback etc.

EQUITY & LIABILITIES
EQUITY
NOTE 12 : SHARE CAPITAL

(` in Lacs)
Authorised :
6,00,00,000 (Previous Year : 6,00,00,000) 6000.00 6000.00
Equity Shares of ` 10/- Each
Total 6000.00 6000.00
Issued, Subscribed & Fully Paid up :
5,62,20,000 (Previous Year : 5,62,20,000 ) 5622.00 5622.00
Equity Shares of ` 10/- Each fully paid up
ranking pari passu
Total 5622.00 5622.00
a. Details of Shareholders holding more than 5% Shares are as under :

Name of Shareholers No. of Shares No. of Shares
(% of Holding) (% of Holding)
Redial Trading & Investment Private Limited 17850000 (31.75%) 17758000 (31.59%)
Ratan Lal Nolkha 6150000 (10.94%) 6130000 (10.90%)
Aditya Birla Sun Life Trustee Private Limited A/c Aditya Birla Sun Life Small Cap Fund 1255762 (2.23%) 3689000 (6.56%)
b. Reconciliation of the number of Shares outstanding is set out below :

Particulars No. of Shares No. of Shares
Equity Shares at the beginning of the year 56220000 56220000
Add : Shares issued during the year - -
Equity Shares at the end of the year 56220000 56220000
c. The Company has not issued, any Shares pursuant to contract without payment being received in Cash, Bonus Shares
and has not bought back any Shares
d. Terms and Rights attached to Equity Shares:
The Company has only one class of Equity Shares having a par value of ` 10/- per share. The holders of the Equity Shares are
entitled to dividends as declared from time to time and are entitled to voting rights proportionate to their share holding at the
meetings of shareholders.
NOTE 13 : OTHER EQUITY

(` in Lacs)
Capital Redemption Reserve 150.00 150.00
Securities Premium 13727.12 13727.12
General Reserve 5000.00 5000.00
Other Reserve - Cash Hedge Reserve 32.81 (264.57)
Retained Earnings 31802.82 25168.77
Total 50712.75 43781.32

Corporate Overview
Statutory Reports

NOTE 13.1 : PARTICULAR OF OTHER EQUITY

(` in Lacs)
a. Capital Redemption Reserve
Opening Balance 150.00 150.00
Additions during the year - -
Deductions during the year - -
Net Balance 150.00 150.00
b. Securities Premium
Net Balance 13727.12 13727.12
c. General Reserve
Net Balance 5000.00 5000.00
d. Other Reserve - Cash Hedge Reserve
Opening Balance (264.57) 145.28
Additions during the year 297.38 (409.85)
Net Balance 32.81 (264.57)
e. Retained Earnings
Add: Profit for the year 6887.19 2381.72
Less : Allocation / Appropriation
Dividend Paid 337.32 702.75
Tax on Dividend Paid - 144.45
Transfer to General Reserve - -
Actuarial Loss/(Gain) (84.18) (25.18)
Sub Total 253.14 822.02
Net Balance 31802.82 25168.77
Total (a to e) 50712.75 43781.32
NOTE 14 : NON CURRENT FINANCIAL LIABILITIES - BORROWINGS

(` in Lacs)
Term Loans from Banks
Term Loans from Banks 67835.61 75379.13
Less: Taken to other Current Liabilities being Current Maturities 11446.25 7746.25
Total 56389.36 67632.88
14.1 Security
Term Loans of ` 67835.61 Lacs (PY ` 75379.13 Lacs) are secured by way of first charge on all immovable and movable Property, Plant
& Equipment except PPE under CSR and Right of Use - Building (both present and future) situated at Hamirgarh unit & Begun unit and
site situated at Badi ka Kheda Tehsil Begun dist. Chittorgarh or anywhere else ranking pari-passu with all term lenders and second
charge on entire current assets i.e. Stock of Raw Material, Consumable Stores, Semi Finished & Finished Goods & Book Debts of
Hamirgarh unit & Begun unit and or anywhere else ranking pari-passu with all term lenders. The term loans are also secured by
way of personal guarantee of three executive directors.

14.2 Terms of Repayment

Term loans of ` 7150.00 Lacs in 10 variable quarterly installments upto Sept. 2023, ` 15050.00 Lacs in 17 variable quarterly installments
upto June 2025, ` 44626.94 Lacs in 25 variable quarterly installments upto June 2027 and ` 1008.67 Lacs in 11 variable quarterly
installments upto Dec. 2023.
NOTE 15 : OTHER NON CURRENT FINANCIAL LIABILITIES

(` in Lacs)
Lease Liability - Building - 3.69
Total - 3.69
NOTE 16 : NON CURRENT LIABILITIES - PROVISIONS

(` in Lacs)
Provision for Employee Benefits 1971.18 1667.32
Total 1971.18 1667.32
NOTE 17 : DEFERRED TAX LIABILITY

(` in Lacs)
A. Deferred Tax Liability
- Depreciation 12078.32 10802.52
- Deferred Transaction Cost 43.77 57.08
12122.09 10859.60
B. Deferred Tax Assets
- Employee Benefits Expenses 940.81 679.88
- Unabsorbed Depreciation 145.78 2908.90
1086.59 3588.78
Total (A-B) 11035.50 7270.82
Less : MAT Credit Entitlement 5760.92 3801.46
Add : Deferred Tax related to OCI 76.37 (141.98)
C. Deferred Tax Liability (Net) 5350.95 3327.38
NOTE 17.1 : Further information has been disclosed in Note No. 32
NOTE 18 : CURRENT FINANCIAL LIABILITIES - BORROWINGS

(` in Lacs)
Working Capital Loan from Banks (Secured) 28227.76 28586.35
Loan from Corporates (Unsecured) 100.00 75.00
Total 28327.76 28661.35
18.1 Security
Working capital loans of ` 28227.76 Lacs (PY ` 28586.35 Lacs) are secured by way of first charge on entire current assets i.e. Stock
of Raw Material, Consumable Stores, Semi Finished & Finished Goods & Book Debts of Hamirgarh unit & Begun unit or anywhere
else ranking pari-passu with all lenders and second charge on all immovable and movable Property, Plant & Equipment except PPE
under CSR and Right of Use - Building (both present and future) situated at Hamirgarh unit & Begun unit and site situated at Badi ka
Kheda Tehsil Begun dist Chittorgarh or anywhere else ranking pari-passu with all lenders. The working capital loans are also secured
by way of personal guarantee of three executive directors.

Corporate Overview
Statutory Reports

Note 18.2 : Terms of Repayment

Working Capital Loans and Loans from Corporates are repayable on Demand.
NOTE 19 : CURRENT FINANCIAL LIABILITIES - TRADE PAYABLE

(` in Lacs)
For Goods Purchased
Due to Micro & Small Enterprises 148.04 48.54
Due to Others 1885.66 2215.45
For Services & Others
Due to Micro & Small Enterprises - -
Due to Others 3443.17 1885.80
Total 5476.87 4149.79
19.1 Disclosure related to Micro, Small & Medium Enterprises

A. Trade Payables include Principal amount ` 148.04 Lacs (Previous Year ` 48.54 Lacs) and Interest amount ` Nil (Previous Year ` Nil)
due to Micro, Small & Medium Enterprises as at 31st March, 2021. The figures have been disclosed on the basis of informations
received from suppliers who have registered themselves under the Micro, Small and Medium Enterprises Development Act,
2006 (MSMED Act, 2006) and/or based on the information available with theCompany. Further, no interest during the year has
been paid or payable under the provisions of the MSMED Act, 2006.
B. No Interest has been paid under section 16 of the Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006),
along with the amount of the payment made to the supplier beyond the appointed day during each accounting year.
C. No Interest due and payable for the period of delay in making payment (which has been paid but beyond the appointed day
during the year) but without adding the interest specified under the Micro, Small and Medium Enterprises Development Act,
2006.
D. No Interest accrued and remaining unpaid at the end of each accountig year.
E. No further interest remaining due and payable even in the succeeding years, until such date when the interest dues above are
actually paid to the small enterprise, for the purpose of disalowance of a deductable expenditure under section 23 of the Micro,
Small and Medium Enterprises Development Act, 2006.
NOTE 20 : OTHER CURRENT FINANCIAL LIABILITY

(` in Lacs)
Derivative Liability (Net) - 406.54
Current Maturities of Long Term Debt 11446.25 7746.25
Interest accrued but not due on Borrowings - 73.05
Unclaimed Dividend 31.36 30.99
For Capital Goods
Due to Micro & Small Enterprises - -
Due to Others 0.40 203.71
Current Lease Liability 3.69 3.34
Security Deposit 16.99 9.29
Other Payable 1060.53 638.68
Total 12559.22 9111.85

NOTE 21 : OTHER CURRENT LIABILITIES
(` in Lacs)
Advances From Customers 433.00 154.26
Statutory Dues 235.00 197.80
Security Deposit 37.74 53.29
Total 705.74 405.35
NOTE 22 : CURRENT LIABILITIES - PROVISIONS
(` in Lacs)
Provision for Employee Benefits 159.41 163.07
Total 159.41 163.07
NOTE 23 : CURRENT TAX LIABILITIES
(` in Lacs)
Provision for Tax (Net) 356.83 -
Total 356.83 -
NOTE 24 : REVENUE FROM OPERATIONS
(` in Lacs)
Revenue from Contract with Customers
Sale of Products
Yarn 108136.66 104058.87
Fabrics 42230.57 27709.38
Others 10497.44 10557.58
Sale of Services 0.89 2.51
Other
Foreign Exchange Fluctuation (Net) 1575.66 1477.77
Total 162441.22 143806.11
NOTE 25 : OTHER INCOME

(` in Lacs)
Interest Received 115.40 172.21
Insurance Charge Collected 22.61 14.96
Profit on Sale of Property, Plant and Equipments 45.52 25.08
Miscellaneous Income 6.40 0.54
Total 189.93 212.79
NOTE 26 : COST OF MATERIAL CONSUMED

(` in Lacs)
Stock at Opening
Cotton 16513.06 16227.84

Corporate Overview
Statutory Reports

(` in Lacs)
Yarn 68.01 239.69
Polyster 147.91 66.86
Total (A) 17023.49 16545.26
Add : Purchases & Expenses
Cotton 96890.09 96360.79
Yarn 1822.51 950.06
Polyster 3097.30 2937.84
Grey Fabric - 37.27
Total (B) 103507.09 101146.87
Total (A+B) 120530.58 117692.13
Less : Stock at Closing
Cotton 22182.45 16513.06
Yarn 321.75 68.01
Polyster 573.80 147.91
Total (C) 23339.65 17023.49
Total (A+B-C) 97190.93 100668.64
Less: Consumption Transferred to Trial Period Income & Expenditure - 8475.57
Net Consumption 97190.93 92193.07
NOTE 27 : CHANGES IN INVENTORIES OF FINISHED GOODS, WORK-IN-PROGRESS AND STOCK-IN-TRADE

(` in Lacs)
Stock at Closing
Work-In-Progress 3381.38 2962.61
Total 10887.77 8327.35
Stock at Opening
Work-In-Progress 2962.61 1869.98
Total 8327.35 4891.72
(Increase)/Decrease in Stocks (2560.42) (3435.63)
Less: Transferred to Trial Period Income & Expenditure - 3217.47
(Increase)/Decrease in Stocks (2560.42) (218.16)
NOTE 28 : EMPLOYEE BENEFITS EXPENSE

(` in Lacs)
Salary & Wages 9291.94 7731.17
Contribution to Providend and Other Funds 825.29 711.23
Gratuity and Leave Encashment Expenses 497.10 578.03
Staff Welfare Expenses 563.38 412.47
Total 11177.71 9432.90

NOTE 29 : FINANCE COST

(` in Lacs)
Interest Expenses
On Term Loans 3270.37 2777.38
On Others 2453.52 2345.74
5723.89 5123.12
Other Borrowing Costs 436.82 432.60
Total 6160.71 5555.72
NOTE 30 : OTHER EXPENSES

(` in Lacs)
(a) Manufacturing Expenses
Power & Fuel 17857.12 16272.20
Stores & Spares Consumed 3429.58 2961.19
Packing Expenses 1891.76 1837.05
Job Charges Paid 0.37 1.90
Repair to :-
Machinery 110.86 118.80
Building 61.71 42.66
Others 67.61 23.14
Total (a) 23419.01 21256.94
(b) Administrative and Other Expenses
Printing & Stationary 33.85 33.24
Postage & Communication 26.34 27.42
Subscription & Membership Fees 4.03 8.40
Director's Sitting Fee 8.40 8.40
Rates & Taxes 19.49 29.39
Listing Expenses 7.81 7.83
Travelling Exp - Directors 1.43 10.29
- Others 11.75 33.21
Vehicle & Conveyance 146.56 140.95
Charity & Donation 6.24 1.64
CSR Expenditure 143.16 24.33
Legal & Professional 22.44 41.27
Insurance Charges 278.75 137.36
Payment to Auditors 12.36 11.41
Cost Audit Fees 0.50 0.50
Advertisement 9.23 12.50
Software Expenses 45.52 25.23
Provision for Doubtful Debts 432.58 -
Miscellaneous Expenses 8.12 11.07
Total (b) 1218.56 564.44
(c) Selling and Distribution Expenses
Sales Promotion Expenses 59.63 50.73
Sales Commission 1866.32 1385.72
Rebate, Claims & Discount 224.90 184.55

Corporate Overview
Statutory Reports

Freight & Forwarding 4115.38 1969.21

Hank Yarn Obligation Expenses 3.28 9.74
Total (c) 6269.51 3599.95
Total (a to c) 30907.08 25421.33
NOTE 30.1 : PAYMENT TO AUDITORS

(` in Lacs)
Audit Fees 10.00 10.00
Tax Audit Fees 1.00 1.00
Legal Services 1.00 -
Certification & Others 0.06 0.03
Reimbursment of Expenses 0.30 0.38
Total 12.36 11.41
NOTE 31 : DISCLOSURE AS PER IND AS 37 “PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS”
1. Contingent Liabilities not provided for:
(` in Lacs)
Sr. Particulars Current Year Previous Year
No.
a. Disputed Liabilities not acknowledged as debts
- Cenvat, Vat, Service Tax and Custom Duty 9.75 9.75
b. Guarantees
- Outstanding Bank Guarantees 219.89 219.89
c. Other money for which the Company is contingently liable
- Bills negotiated with Banks (against goods sold under Letter of Credit) 10539.01 5500.38
2. Commitments
a) Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of Advances)
` 2277.66 Lacs (Previous Year – ` 195.09 Lacs).
b) The Company has an outstanding export obligation of approx. ` 69947.97 Lacs (Previous Year – ` 98220.51 Lacs), in
respect of capital goods imported at the concessional rate of duty under Export Promotion Capital Goods Scheme, which
is required to be met at different dates on or before 31st March, 2027.
NOTE 32 : DISCLOSURE AS PER IND AS 12 “INCOME TAXES”

(a) Reconciliation of Tax Expense and the accounting profit multiplied by India’s Tax Rate:
(` in Lacs)
Accounting Profit Before Tax 10651.86 3564.47
Tax using Company's Domestic Tax Rate for respective year 3722.19 1245.57
Effect of Non-Deductible Expenses 22.63 (19.28)
Effect of Depreciation 19.85 0.70
Tax in respect of Earlier Years - (44.24)
Tax as per Statement of Profit & Loss 3764.67 1182.75

(b) Income Tax Expense

i. Income Tax recognised in Statement of Profit and Loss
(` in Lacs)
[A] Current Tax Expense:
Current Year (Net of MAT Credit) - -
Adjustment for Earlier Years - (44.24)
Total [A] - (44.24)
[B] Deferred Tax Expense
Origination and Reversal of Temporary Differences 3764.67 1226.99
Total [B] 3764.67 1226.99
Total Income Tax [A+B] 3764.67 1182.75
ii. Income Tax recognised in Other Comprehensive Income
(` in Lacs)
Before Tax Net of Before Tax Net of
Tax Expenses Tax Tax Expenses Tax
Net Actuarial Gain/ (Losses) on Defined Benefit Plans 129.39 45.21 84.18 38.71 13.53 25.18
Net Gain/ (Losses) on Cash Flow Hedge 456.98 159.60 297.38 (629.99) (220.14) (409.85)
(c) Movement in Deferred tax Asset/ Liability
(` in Lacs)
Particulars As at Recognised in As at
1st April, 2020 P&L A/c 31st March, 2021
(A) Deferred Tax Assets
- Provision for Employee Benefit and Others 679.88 260.93 940.81
- Unabsorbed Depreciation 2908.90 (2763.12) 145.78
Total (A) 3588.78 (2502.19) 1086.59
(B) Deferred Tax Liability
- Impact of Temporary Difference in Depreciation 10802.52 1275.80 12078.32
- Amortised Value of Financial Assets 57.08 (13.31) 43.77
Total (B) 10859.60 1262.49 12122.09
Net Deferred Tax Liability (B-A) 7270.82 3764.67 11035.50
Add: Deferred Tax Related to OCI (141.97) 218.34 76.37
7128.85 3983.01 11111.87
Less: Liability net off through MAT Credit Entitlement 3801.47 1959.45 5760.92
Net Deferred Tax Liability 3327.38 2023.56 5350.95
(d) MAT Credit Available to the Company in future:

(` in Lacs)
Financial Years As at Available Till
31st March, 2021
2013-14 190.29 2023-24
2014-15 1126.56 2024-25
2015-16 582.47 2025-26
2016-17 1272.59 2026-27
2019-20 629.56 2034-35
2020-21 1959.45 2035-36
Total 5760.92

Corporate Overview
Statutory Reports

(e) Reconciliation of Deferred Tax Liabilities (Net)
(` in Lacs)
Financial Years 2020-21 2019-20
Deferred tax liability at the beginning of the year 3327.38 2991.17
Deferred tax (Income)/ Expenses during the year recognised in the Statement of 3764.67 1226.99
Profit and Loss
Deferred tax (Income)/ Expenses during the year recognised in Other 218.35 (220.14)
Comprehensive Income
Liability Net off through MAT Credit Entitlement 1959.45 670.64
Deferred tax liability at the end of the year 5350.95 3327.38
NOTE 33 : DISCLOSURE AS PER IND 23 “BORROWING COST”

(` in Lacs)
Particulars 2020-21 2019-20
Amount of Borrowing Cost Capitalised - 1568.35
Capitalisation Rate - 9.15%
NOTE 34 : DISCLOSURE AS PER IND AS 24 “RELATED PARTY DISCLOSURES”

1. List of Related Parties with whom Transactions have taken place:-
a. Key Management Personnel:-
Name of Person Relationship
Shri R.L. Nolkha Chairman
Shri Dinesh Nolkha Managing Director
Shri Nitin Nolakha Joint Managing Director
Shri P. Maheshwari Chief Financial Officer
Shri Sudhir Garg Company Secretary & GM (Legal)
b. Relatives:-
Smt. Sushila Devi Nolkha Wife of Shri R.L. Nolkha,
Mother of Shri Dinesh Nolkha & Shri Nitin Nolakha
c. Related Companies:-
Name of Company Relationship
Redial Trading & Investment Private Limited Holding 31.75% shares of the Company
d. Independent Directors:-
Shri Y. R. Shah Independent Director
Shri R. Chattopadhyay Independent Director
Smt. Aditi Mehta Independent Director
2. Details of Transactions with related parties:-
(` in Lacs)
S. Nature of Transactions For the year ended For the year ended
1 Rent Payment
Smt. Sushila Devi Nolkha 3.00 3.00
Redial Trading & Investment Private Limited 0.90 0.90
2 Remuneration to Key Managerial Person
Shri R.L. Nolkha 133.33 87.15
Shri Dinesh Nolkha 125.33 77.75
Shri Nitin Nolakha 118.47 69.49
Shri P. Maheshwari 31.44 31.44
Shri Sudhir Garg 20.14 20.14

(` in Lacs)
S. Nature of Transactions For the year ended For the year ended
3 Interest Payment on Unsecured Loans
Shri R.L. Nolkha - 3.73
Shri Nitin Nolakha - 1.31
Redial Trading & Investment Private Limited 8.06 3.55
4 Sitting Fees Paid to Independent Director
Shri Y. R. Shah 2.40 3.20
Shri R. Chattopadhyay 3.00 3.00
Smt. Aditi Mehta 3.00 2.20
3. Balance due to related parties and maximum balance outstanding during the year are as under:-
(` in Lacs)
S. Name of related party Outstanding Balance Maximum Balance outstanding during
No. the year
For the Year Ended For the Year Ended For the Year Ended For the Year Ended
31st March, 2021 31st March, 2020 31st March, 2021 31st March, 2020
1 Shri R. L. Nolkha - - - 150.00
2 Shri Nitin Nolakha - - - 50.00
3 Redial Trading & Investment 100.00 75.00 150.00 85.00
Private Limited
NOTE 35 : DISCLOSURE AS PER IND AS 33 “EARNING PER SHARE (EPS)”
i. Basic and Diluted Earnings Per Share (in `)
(` in Lacs)
a) Net Profit available to Equity Shareholders 6887.19 2381.72
b) Weighted Average Number of Equity Shares of ` 10 each outstanding during 562.20 562.20
the year (In Lacs)
c) Basic/Diluted Earning per share (In `) 12.25 4.24
d) Face Value of each Equity Share (In `) 10 10
ii. Weighted Average Number of Equity Shares
(` in Lacs)
Opening Balance of issued Equity Shares 56220000 56220000
Effect of Shares issued during the year - -
Weighted Average No. of Equity Shares ` 10 each 56220000 56220000
NOTE 36 : DIVIDEND ON EQUITY SHARES

(` in Lacs)
Particulars Year 2020-21 Year 2019-20
(i) Dividend Declared and paid during the year
Final Dividend for the year ended 31st March, 2020 of ` 0.60 (31st March, 2019- ` 1.25) 337.32 702.75
per fully paid Equity Share
Dividend Distribution Tax on Final Dividend - 144.45
Total 337.32 847.20
(ii) Dividend not recognised at the end of reporting period
In addition to the above dividends, at the year end the Company’s Board of Directors have proposed the payment of final

Corporate Overview
Statutory Reports

dividend of ` 1.50 (31st March, 2020- ` 0.60) per fully paid Equity Share. This proposed dividend is subject to the approval of the
shareholders in Annual General Meeting. The total outgo towards the same will be ` 843.30 Lacs.
NOTE 37 : DISCLOSURE AS PER IND AS 19 “EMPLOYEE BENEFITS”

a) Defined Contribution Plan
The Company makes contributions towards Employees Provident Fund and Family Pension Fund for qualifying employees.
The Fund is operated by the Regional Provident Fund Commissioner. The amount of contribution is recognised as expense for
defined contribution plans.
Total contribution made by the employer to the Fund during the year is ` 639.95 Lacs (Previous Year ` 592.31 Lacs).
b) Defined Benefit Plan & Other Long Term Benefits

(i) Gratuity
The Company makes payment to vested employees as per provisions of Payment of Gratuity Act, 1972. The provision of
Gratuity liability as on the Balance Sheet date is done on actuarial valuation basis for qualifying employees, however the same
is not funded to any trust or scheme.
The present value of the Defined Benefits obligation and the related current service cost is measured using the Projected Unit
Credit Actuarial Method at the end of Balance Sheet date by the Actuary.
(ii) Leave Encashment

The Company provides benefit of leave encashment to its employees as per defined rules. The provision for liability for leave
encashment as on date of Balance Sheet is recognised on the basis of Actuarial certificate.
(iii) The following table set out the status of Gratuity and Leave encashment plans as required under Ind AS-19 :
(a) Changes in Defined Benefit Obligations :-
(` in Lacs)
Gratuity Leave Gratuity Leave
Encashment Encashment
Defined Benefit obligation at the beginning of the year 1371.65 432.10 1001.97 274.58
Interest cost 85.88 27.34 76.75 21.03
Current service cost 358.11 174.14 356.03 185.43
Benefits paid (37.89) (12.70) (24.39) (10.11)
Actuarial (Gain)/Loss on obligation (129.39) (148.37) (38.71) (38.83)
Present value of obligation at the end of year 1648.36 472.51 1371.65 432.10
(b) Net Defined Benefit Cost/(Income) included in the :-
1. Statement of Profit and Loss
(` in Lacs)
Current service Cost 358.11 174.14 356.03 185.43
Interest Cost 85.88 27.34 76.75 21.03
Net actuarial (gain)/loss recognised in the period - (148.37) - (38.83)
Expenses recognised in the Profit & Loss statement* 443.99 53.11 432.78 167.63
* Amount of ` Nil of Gratuity (Previous Year ` 13.30 Lacs) and ` Nil of Leave Encashment (Previous Year ` 9.08 Lacs)
debited to Trial Run Income & Expenditure A/c.

2. Other Comprehensive Income :-
(` in Lacs)
Particulars Gratuity
For the year ended For the year ended
Actuarial (Gain)/Loss for the year on Projected Benefit Obligations (129.39) (38.71)
Unrecognised actuarial (Gain)/Loss at the end of the year (129.39) (38.71)
(c). Reconciliation of the Present value of Defined Obligation and the fair value of the plan assets :
(` in Lacs)
Present value of obligation as at the end of year 1648.36 472.51 1371.65 432.10
Fair value of Plan Assets - - - -
Liability Recognised in Balance Sheet 1648.36 472.51 1371.65 432.10
(d). The assumptions used in Actuarial Valuation :-
Financial Assumptions used to determine the Profit & Loss Charge Year 2020-21 Year 2019-20
a) Discounting Rate 6.76% p.a. 6.76% p.a.
b) Salary Escalation Rate 8.00% p.a. 8.00% p.a.
c) Expected rate of Return on Assets 0.00%p.a. 0.00%p.a.
Demographic Assumptions Used to determine the Defined Benefit
a) Retirement Age 60 Years 60 Years
b) Mortality Table 100% IALM 100% IALM
(2012-2014) (2012-2014)
c) Employee Turnover/Attrition Rate
18 To 30 Years 3.00% 3.00%
31 to 44 Years 2.00% 2.00%
Above 44 Years 1.00% 1.00%
(e). Sensitivity Analysis as at 31st March, 2021 :-
(` in Lacs)
Particulars Gratuity Leave
Encashment
Defined benefit Obligation - Discount Rate+50 Basis points (116.31) (38.28)
Defined benefit Obligation - Discount Rate-50 Basis points 129.98 43.13
Defined benefit Obligation – Salary Escalation Rate+50 Basis points 127.77 42.40
Defined benefit Obligation – Salary Escalation Rate-50 Basis points (115.55) (38.04)
(f). Expected Cash Flows for the next ten years as at 31st March, 2021 :-
(` in Lacs)
Particulars Gratuity Leave
Encashment
Within 1 Year 120.33 29.37
1-5 Years 168.28 49.61
Beyond 5 Years but upto 10 Years 1359.75 393.53
Total Expected Payments 1648.36 472.51
(g) The estimates of future salary increase; considered in actuarial valuation, take account of inflation, seniority, promotions
and other relevant factors such as supply and demand in the employment market.
(h) The discount rate is based on prevailing market yields of Indian Government Bonds, as at the balance sheet date,
consistent with the currency and estimated term of the post employment benefit obligations.

Corporate Overview
Statutory Reports

NOTE NO.38 - DISCLOSURE AS PER IND AS 107 “FINANCIAL INSTRUMENT DISCLOSURE”

i. Capital Management
For the purpose of the Company’s capital management, capital includes issued equity capital and all other equity reserves
attributable to the equity holders of the Company. The primary objective of the Company’s capital management is to ensure that it
maintains an efficient capital structure and healthy capital ratios in order to support its business and maximise shareholder value.
The Company manages its capital so as to safeguard its ability to continue as a going concern and to optimise returns to
shareholders. The capital structure of the Company is based on management’s judgement of its strategic and day-to-day needs
with a focus on total equity so as to maintain investor, creditors and market confidence. The management and the Board of
Directors monitors the return on capital as well as the level of dividends to shareholders. The Company may take appropriate
steps in order to maintain, or if necessary adjust, its capital structure.
The Company monitors capital using a gearing ratio, which is calculated by dividing Net Debt from the Equity. The Company
includes within Net Debt, interest bearing loans and borrowings less cash and short-term deposits (including other bank
balance) and under Equity, the Equity Share Capital plus other Equity (excluding Preference Share Capital) is considered.
(` in Lacs)
Gross Debt 96163.37 104040.48
Less: Cash and Cash Equivalents (2.06) (12.45)
Net Debt (A) 96161.31 104028.03
Total Equity (B) 56334.75 49403.32
Gearing Ratio (A/B) 1.71 2.11
ii Financial Risk Management
The Company’s Financial Risk Management is an integral part of how to plan and execute its business strategies. The Company’s
financial risk management is set by the Managing Board.
Company is exposed to following risk from the use of its financial instrument:
-Credit Risk
-Liquidity Risk
-Market Risk
(a) Credit Risk
Financial assets are written off when there is no reasonable expectation of recovery, such as a debtor failing to engage in a
repayment plan with the Company. The Company categorise a loan or receivable for write off when a debtor fails to make
contractual payments greater than 2 years past due. Where loans or receivables have been written off, the Company continues
to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognised
in profit or loss.
Provision for Expected Credit or Loss
(a) Financial assets for which loss allowance is measured using 12 month expected credit losses:
The Company has assets where the counter-parties have sufficient capacity to meet the obligations and where the risk of
default is very low. Accordingly, no loss allowance for impairment has been recognised.
(b) Financial assets for which loss allowance is measured using life time expected credit losses:
The Company provides loss allowance on trade receivables using life time expected credit loss and as per simplified approach.
Ageing of Trade Receivables
Ageing Not Due 0-180 days 181-365 days 1-2 years 2-5 years Total
past due past due past due past due
Gross Carrying amount as on 31st March, 2021. 12610.77 3403.21 123.41 879.77 - 17017.16
Impairment loss recognised in 2020-21 - - - 432.58 - 432.58
Gross Carrying amount as on 31st March, 2020. 10331.48 4451.74 495.05 - - 15278.27
Impairment loss recognised in 2019-20 - - - - - -

Hedge Accounting Disclosures

The Cash Flow hedging reserve represents the cumulative effective portion of gains or losses arising on charges in fair value
of designated portion of hedging instruments entered into cash flow hedges. The cumulative gain or loss arising on changes
in fair value of the designated portion of the hedging instruments that are recognised and accumulated under the heading of
cash flow reserve will be reclassified to statement of profit and loss only when the hedged transaction affects the profit or loss
or included as a basic adjustment to the non financial hedged item.
(b) Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities
that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to ensure, as
far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed
conditions, without incurring unacceptable losses or risking damage to the Company’s reputation. The Company’s finance
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
forecasts on the basis of expected cash flows.
The table below summarises the maturity profile of the Company’s financial liabilities based on contractual undiscounted
payments:
As on 31st March, 2021

(` in Lacs)
Contractual Maturities of Financial Liabilities Contractual cash flows Total
3 Months 3-12 1-2 Years 2-5 Years More than
or less Months 5 Years
Term Loans from Banks* 4338.12 12657.35 17031.19 40159.93 11746.17 85932.76
Trade and other Payables 5476.87 - - - - 5476.87
As on 31st March, 2020
(` in Lacs)
Contractual Maturities of Financial Liabilities Contractual cash flows Total
3 Months 3-12 1-2 Years 2-5 Years More than
or less Months 5 Years
Term Loans from Banks* 1717.17 12746.53 17239.99 46327.32 23171.85 101202.87
Trade and other Payables 4149.79 - - - - 4149.79
*Includes contractual interest payment based on interest rate prevaling at the end of the reporting period over the tenure of
the borrowing.
The Company has accessed the following undrawn facilities at the end of reporting period:
(` in Lacs)
Fixed Rate Borrowings - -
Floating-rate Borrowings 7202.24 2123.65
Total- Undrawn Facilities 7202.24 2123.65
(c) Market Risk

Considering the Company’s existing foothold/experience in the Textile sector, established & diversified client base, association
with various international/domestic agents, it’s competent sales team and an established marketing setup in India and
International Market, it does not foresee any problem in marketing its production.
“Market Risk is the risk of loss of future earnings, fair values of 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 exchanges rates, equity prices and other market changes that effect market risk sensitive instruments. Market risk
is attributable to all market risk sensitive financial instruments including investments and deposits, and other market changes.
The Company manages market risk through a finance department, which evaluates and exercises independent control over

Corporate Overview
Statutory Reports

the entire process of market risk management. The finance 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.”
i) Interest Rate Risk
It is the risk where changes in market interest rates might adversely affect the Company’s financial condition. The short
term/immediate impact of changes in interest rates are on the Company’s net interest income/expenses. On a longer
term, change in interest rate impact the cash flows on the assets, liabilities and off-balance sheet items, giving rise to a
risk to the net worth of the Company arising out of all reprising mismatches and other interest rate sensitive positions.
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes
in market interest rate. In order to optimise the Company’s position with regards to 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 its total portfolio.
At the reporting date the interest rate profile of the Company’s interest-bearing financial instruments is as follows.
Detail of financial instrument bearing interest rate risk

At the reporting date the interest rate profile of the Company’s interest bearing financial instrument is at its fair value:
(` in Lacs)
Variable rate instruments
Long Term Borrowings 56389.36 67632.88
Current Maturities of Long Term Debts 11446.25 7746.25
Short Term Borrowings 28327.76 28661.35
Total 96163.37 104040.48
Interest rate sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans
and borrowings affected. With all other variables held constant, the Company’s profit before tax is affected through the
impact on floating rate borrowings, as follows:
(` in Lacs)
Particulars Effect of Profit or Loss
50 BP decrease 50 BP increase
31st March, 2021
Term Loans 339.18 (339.18)
Loan repayable on demand 141.64 (141.64)
Total 480.82 (480.82)
31st March, 2020
Term Loans 376.89 (376.89)
Loan repayable on demand 143.30 (143.30)
Total 520.19 (520.19)

ii) Foreign Exchange Risk
It is the risk that the Company may suffer losses as a result of adverse exchange rates movements during a period in which
it has an open position in an individual foreign currency. In addition, the Company may also expose to the following risks
on account of foreign exchange exposures as applicable.
Interest Rate Risk - Which arises from the maturity mismatches of foreign currency position
Settlement Risk - On account of risk of default of the counter parties.
Exposure to Foreign Currency :

[Foreign Currency In Lacs]
Exposure on account of Financial Assets
Trade Receivables (Net of Bill Discounted) (A)
In US $ 112.36 88.23
In Euro 2.40 2.58
In GBP - 0.53
In CHF - -
Amount hedged through Forward Contracts (B)
In US $ 112.36 88.23
In Euro 2.40 2.58
In GBP - 0.50
In CHF - -
Net Exposure to Foreign Currency Assets (C = A-B)
In US $ - -
In Euro - -
In GBP - 0.03
In CHF - -
Exposure on account of Financial Liabilities
Trade Payables (D)
In US $ 4.26 3.05
In Euro 0.22 0.31
In GBP 0.11 0.05
In CHF 0.20 0.42
Amount hedged through Forward Contracts (E)
In US $ - -
In Euro - -
In GBP - -
In CHF - -
Net Exposure to Foreign Currency Liabilities(F = D-E)
In US $ 4.26 3.05
In Euro 0.22 0.31
In GBP 0.11 0.05
In CHF 0.20 0.42
Net Exposure to Foreign Currency Assets/Liabilities (C-F)
In US $ (4.26) (3.05)
In Euro (0.22) (0.31)
In GBP (0.11) (0.02)
In CHF (0.20) (0.42)
The Company uses forward contracts to hedge its risk associated with fluctuation in foreign currency relating to foreign
currency assets and liabilities, firm commitments and highly probable forecast transactions. The use of the aforesaid

Corporate Overview
Statutory Reports

financial instruments is governed by the Company’s overall Risk Management Strategy. The Company does not use
forward contracts and options for speculative purposes. The details of the outstanding forward contracts and unhedged
currency exposure as at 31st March, 2021 is as under :
(` in Lacs)
Foreign INR Foreign INR
Currency Currency
Forward Contracts Outstanding (For Hedging)
US $ (Sale) 458.08 33986.82 241.44 17646.22
EURO (Sale) 5.53 492.39 13.23 1072.74
GBP (Sale) 1.48 150.19 0.50 45.32
Total 465.09 34629.40 255.17 18764.28
Unhedged Forex Exposure
Payable – US $ 4.26 313.13 3.05 229.94
Payable – EURO 0.22 18.94 0.31 25.75
Payable – GBP 0.11 11.10 0.05 4.65
Payable – CHF 0.20 15.50 0.42 32.84
Total 4.79 358.68 3.83 293.18
Foreign Currency sensitivity:

The following tables demonstrate the sensitivity to a reasonably possible change in US $, EURO, GBP and CHF rates to
the functional currency of respective entity, with all other variables held constant. The Company’s exposure to foreign
currency changes for all other currencies is not material. The impact on the Company’s profit before tax is due to changes
in the fair value of monetary assets and liabilities.
(` in Lacs)
1% Appreciation in INR
Impact on Equity 3.59 2.93
Impact on P&L 3.59 2.93
1% Depreciation in INR
Impact on Equity (3.59) (2.93)
Impact on P&L (3.59) (2.93)
NOTE 39 - DISCLOSURE AS PER IND AS 115 “REVENUE FROM CONTRACT WITH CUSTOMERS”
The Company has adopted Ind AS 115 “Revenue from Contracts with Customers” which is mandatory for reporting periods begining
on or after 1st April 2018. The Company has adopted the cumulative catch-up transition method, applied to contracts that were not
completed as of 1st April, 2018. In accordance with this method, the comparatives have not been retrospectively adjusted. Application
of Ind AS 115 does not have any material impact on the financial results of the company.
Disaggregate revenue information

The table below presents disaggregated revenues from contracts with customers for the year ended 31st March, 2021 by contract-
type. The Company believes that this disaggregation best depicts how the nature, amount, timing and uncertainty of our revenues
and cash flows are affected by industry, market and other economic factors.
(` in Lacs)
Particulars For the year ended
31st March, 2021
Revenues on the basis of Geographical area
- Domestic Sales 60783.38
- Export Sales (Including Export Incentives) 101657.84
Total 162441.22

Trade receivables and Contract Balances

The Company classifies the right to consideration in exchange for deliverables either as a receivable or as unbilled revenue. A
receivable is a right to consideration that is unconditional upon passage of time. Revenues in excess of billings is recorded as
unbilled revenue and is classified as a financial asset for these cases as right to consideration is unconditional upon passage of time.
This would result in the timing of revenue recognition being different from the timing of billing the customers.
Company classifies amount received as advance from customers against sales as contract liability.
Trade receivable and unbilled revenues are presented net of impairment in the Balance Sheet.
During the year ended 31st March 2021, the Company recognises revenue of ` 154.26 Lacs arising from opening contract liabilities
as of 1st April, 2020.
Performance obligations and remaining performance obligations

The remaining performance obligation disclosure provides the aggregate amount of the transaction price yet to be recognised as
at the end of the reporting period and an explanation as to when the Company expects to recognise these amounts in revenue.
Applying the practical expedient as given in para 121 of Ind AS 115, the Company has not disclosed the remaining performance
obligation related disclosures for contracts as the performance obligation is part of a contract that has an original expected duration
of less than 1 year.
The remaining performance obligation as on 31st March, 2021 is ` 433.00 Lacs which is to be satisfied within 1 year or less.
The impact on account of applying the erstwhile IndAS 18 Revenue instead of IndAS 115 Revenue from contract with customers on
the financials results of the Company for the year ended as at 31st March, 2021 is insignificant.
NOTE 40 - DISCLOSURE AS PER IND AS 108 “OPERATING SEGMENTS”

(i) The Company is engaged in Business of Textiles. Hence there is no separate business segments.
Details of Export outside country and Domestic sales within country are as under:
(` in Lacs)
Segment Revenue
- Within India (Domestic Sales) 60783.38 65489.00
- Outside India (Exports - Including Export Incentives) 101657.84 78317.11
Total 162441.22 143806.11
NOTE 41 - DISCLOSURE OF CORPORATE SOCIAL RESPONSIBILITY (CSR)

As per section 135 of Companies Act the company is required to spend in every financial year, at least 2% of the average net profits
of the Company made during the three immediately preceding financial year in accordance with its CSR policy.
A. Gross amount required to be spent by the Company during the year 2020-21 – ` 136.25 Lacs (Year 2019-20 - ` 159.52 Lacs)
B. Amount spent during the year on:
(` in Lacs)
i) Construction/ Acquisition of any assets - 137.03
ii) Insurance expenses of assets - 0.24
iii) Purposes other than (i) above 143.16 24.09
Total 143.16 161.36
NOTE 42 - DISCLOSURE AS PER IND AS 116: LEASES

Effective 1st April, 2019, the Company adopted Ind AS 116 “Leases” and applied the standard to all lease contracts existing on 1st April,
2019 using the modified retrospective method. Consequently, the Company recorded the lease liability at the present value of the
lease payments discounted at the incremental borrowing rate and the right of use asset at its carrying amount as if the standard
had been applied since the commencement date of the lease, but discounted at the Company’s incremental borrowing rate at
the date of initial application. Comparatives as at and for the year ended 31st March, 2019 have not been retrospectively adjusted

Corporate Overview
Statutory Reports

FOR THE YEAR ENDED 31st MARCH, 2021 (Contd.)
and therefore will continue to be reported under the accounting policies included as part of our Annual Report for year ended
31st March, 2019.
On transition, the adoption of the new standard resulted in recognition of ‘Right of Use’ asset of ` 10.14 Lacs and a lease liability of `
10.14 Lacs. Ind AS 116 will result in an increase in cash inflows from operating activities and an increase in cash outflows from financing
activities on account of lease payments.
The following is the summary of practical expedients elected on initial application
1. Applied a single discount rate to a portfolio of leases of similar assets in similar economic environment with a similar end date.
2. Applied the exemption not to recognise right-of-use assets and liabilities for leases with less than 12 months of lease term on
the date of initial application.
3. Excluded the initial direct costs from the measurement of the right-of-use asset at the date of initial application.
4. Applied the practical expedient to grandfather the assessment of which transactions are leases. Accordingly, Ind AS 116 is
applied only to contracts that were previously identified as leases under Ind AS 17.
The weighted average incremental borrowing rate applied to lease liabilities as at 1st April, 2019 is 10% p.a.
Following are the changes in the carrying value of right of use assets for the year ended 31st March, 2021:
(` in Lacs)
Particulars Right to Use Assets
Building Land Total
Balance as at 1st April, 2020 6.76 - 6.76
Reclassified on account of adoption of Ind AS 116 - - -
Additions* - - -
Deletion - - -
Depreciation 3.38 - 3.38
Balance as at 31st March, 2021 3.38 - 3.38
* The aggregate depreciation expense on ROU assets is included under depreciation and amortisation expense in the statement
of Profit and Loss.
The following is the break-up of current and non-current lease liabilities as at 31st March, 2021
(` in Lacs)
Particulars Amount
Lease liability as on 31st March, 2021
Current Lease Liability 3.69
Non Current Lease Liability -
Total 3.69
The following is the movement in lease liabilities during the year ended 31st March, 2021:
(` in Lacs)
Particulars For the year ended
31st March, 2021
Balance at the beginning 7.03
Additions -
Finance cost accrued during the period 0.56
Deletions -
Payment of lease liabilities 3.90
Translation Difference -
Balance at the end 3.69

Maturity Analysis of Lease Liability

(` in Lacs)
Maturity Analysis- Contractual undiscounted cashflows As at
31st March, 2021
Less than one year 3.69
One to Two years -
Amount Recognised in Profit and Loss
(` in Lacs)
Particular 2020-21
Interest on lease liabilities 0.56
Amortisation 3.38
Variable lease payments not included in measurement of lease liabilities -
Income from sub-leasing right of use assets -
Expenses related to short term leases -
Expenses related to leases of low value assets, excluding short term leases of low value assets -
Total 3.94
NOTE 43 : DETAILS OF UNCLAIMED DIVIDEND

The yearwise details of Unclaimed dividend lying in separate bank account is as under :
(` in Lacs)
Unclaimed Dividend Accounts
- Year 2013-14 4.62 4.62
- Year 2014-15 4.30 4.39
- Year 2015-16 5.22 5.28
- Year 2016-17 4.97 5.43
- Year 2017-18 6.95 7.65
- Year 2018-19 3.62 3.62
- Year 2019-20 1.68 -
31.36 30.99
NOTE 44 : RECENT ACCOUNTING PRONOUNCEMENTS

Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to existing standards. There is no such notification which
would be applicable from 1st April, 2021.



Date: 08.05.2021

If undelivered please return to:
16-17 Km. Stone, Chittor Road, Hamirgarh,
Distt Bhilwara (Rajasthan) - 311025
Telephone: 01482-286110-113

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Enduring

Statutory Reports 22-64

Financial Statements 65-112

An electronic version of this report is available online at:

Cautionary Statement Regarding Forward-Looking Statement

` 1,624 Crores +13%

` 257 Crores +52%

` 12.25 Per Share +189%

Established in Bhilwara, Rajasthan, the Company is

It is certified with ISO 9001:2015, ISO 14000,

Achieved sales of 22.8

2 Annual Report 2020-21

28 Years ` 1,624 Crores ` 69 Crores

of inception Total revenue PAT

50+ 3,00,048 3,488

Become an integrated textiles manufacturer by forward and vertical integration

To be the most reliable supplier across the textile value chain

Nitin Spinners Limited 3

100% cotton and blended ring-spun combed

100% cotton & cotton blends in piece dyed

4 Annual Report 2020-21

Woven Apparel Knitted Apparel Furnishing Fabrics

Denims Terry Towel Medical Fabrics

Tea Bags Bed Linen

Sports Wear Winter Wear Baby Wear

Fashion and Uniform Industrial and

Health Care Hotel Apparel Defence Wear

Nitin Spinners Limited 5

6 Annual Report 2020-21

1. Argentina 12. Czech 23. Israel 34. Paraguay 45. Thailand

Nitin Spinners Limited 7

Cutting-edge manufacturing facilities

Reliable customer base

8 Annual Report 2020-21

Focus on sustainable products and processes

Exceptional innovation track record

Highly qualified promoters and management team

Nitin Spinners Limited 9

Dear Shareholders, I am happy to announce that the Board of Directors have

10 Annual Report 2020-21

Thriving Together in New Normal

Our new composite textile project to manufacture Cotton

Sustainable, Environment Friendly and

As a part of community development, we are constantly Gratitude to All

Nitin Spinners Limited 11

Revenue from Operations (` in Crores)

Human Resources FY21 1,624

Safe and healthy work environment FY19 1,243

Engaging working culture

Social and CSR Resources

12 Annual Report 2020-21

Integrated operations – Fibre to Strong clientele throughout domestic and

Best-in-class technology and state-of-the-art Steadily expanding asset portfolio by

Growing contribution of value-added Key driving Optimisation of raw material procurement

Effectively positioning ourselves to

Strong Prudent risk Effective and hybrid Stakeholder Environment

EBITDA (` in Crores) PAT (` in Crores)

FY21 257 FY21 69

FY20 170 FY20 24

100% cotton and blended ring-spun combed

100% cotton & cotton blends in piece dyed

2. Chittor - Kota N.H. 27, Village Bhanwaria kalan,