1.11 Provisions, Contingent Liability and Contingent Assets

Disputed liabilities and claims against the company including claims raised by fiscal authorities (e.g.
Sales Tax, Income Tax, Excise etc.) pending in appeal or court for which no reliable estimate can be
made and or involves uncertainty of the outcome of the amount of the obligation or which are
remotely poised for crystallization are not provided for in accounts but disclosed in notes to accounts.

However, present obligation as a result of past event with possibility of outflow of resources, when
reliable estimation can be made of the amount of obligation, if any, is recognized in accounts in terms of
discounted value, if the time value of money is material using a current pre-tax rate that reflects the risk
specific to the liability. No contingent asset is recognized by the company.

1.12 Foreign Currency Translation

The company's financial statements are presented in INR, which is also the company's functional
currency.

i. Transactions in foreign currencies, if any, are recognized at rate of overseas currency ruling on the
date of transactions. Gain/Loss arising on account of rise or fall in overseas currencies vis-a-vis
functional currency between the date and that of payment is charged to Statement of Profit and
Loss.

ii. Monetary Assets in foreign currencies, if any, are translated into functional currency at the
exchange rate ruling at the Reporting Date and the resultant gain or loss is accounted for in the
Statement of Profit and Loss.

iii. Non-Monetary items which are carried at historical cost denominated in a foreign currency, if
any, are reported using the exchange rate at the date of transaction.

iv. Impact of exchange fluctuation, if any, is separately disclosed in the notes to accounts.

1.13 Earnings Per Share

Basic Earnings per share is calculated by dividing:

- the net profit for the period attributable to equity shareholders

- by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share:

- the net profit for the period attributed to equity shareholders

- and the weighted average number of shares outstanding during the period

- is adjusted for the effects of all dilutive potential equity shares.

1.14 Borrowing Costs

Borrowing cost, if any, that are directly attributable to the acquisition, construction, or production of a
*qualifying asset are capitalized as a part of the cost of such asset till such time the asset is ready for its
intended use or sale.

Borrowing cost consists of interest and other costs that an entity incurs in connection with the

borrowing of funds. Borrowing costs also includes exchange differences, if any, to the extent regarded
as an adjustment to the borrowing costs. All other borrowing costs are recognized as expense in the
period in which they are incurred.

* A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its
intended use or sale.

1.15 Cash and Cash Equivalents

For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash
on hand, deposits held at call with financial institutions, other short- term, highly liquid investments
with original maturities of three months or less that are readily convertible to known amounts of cash
and which are subject to an insignificant risk of changes in value.

1. In the opinion of the Board, the current assets, loans and advances are approximately of the value
stated if realized in the ordinary course of the business, the provision for all known liabilities is
adequate and no in excess of the amount considered reasonably necessary.

2. Contingent Liabilities not provided for :

Contingent Liabilities not provided for in respect of -

a. Guarantee provided by/on behalf of the company: NILb. Claims against company not acknowledged as debts: NILc. Other money for which the company is contingently liable: NIL5. DEFERRED TAX

The company has recognized Deferred Tax Asset in respect of the timing differences as on 31 March
2026. In view of the estimates of future profitability of the Company and the availability of sufficient
future taxable income, company has decided to recognize Deferred Tax Asset in respect of the timing
differences outstanding at the beginning of the period as well as those arisen during the period.

6. Figures of the previous year have been regrouped rearranged and recast wherever necessary, to make
them comparable with the figures or the current year.

7. Expenditure in Foreign Currency - NIL

(Previous year Rs. NIL/-)

9. Segment Information

The Company has identified only one reportable segment viz. manufacturing and whole sale trading in
sarees, dress material and allied garments and reported taking into account nature of products and
services, the differing risks and returns and the internal business reporting system.

10. The Company does not hold any crypto currency or any other digital virtual asset.

11. The issue of 'disclosure or otherwise of any undisclosed income in the hands of the Company' is not
applicable to the Company.

12. The Company has not obtained any loans from the banks.

13. The Company does not own any immovable properties.

14. The Company has not granted any loans to any related parties during the year.

15. No proceedings have been initiated against the Company under the Prohibition of Benami Transactions
(Prohibition) Amendment Act, 2016.

16. The Company has not been declared willful defaulter by any of the banks/financial institutions.

17. The Company has no transactions with companies struck off either under section 248 of the Companies
Act, 2013 or under section 560 of the Companies Act, 1956.

18. Corporate Social Responsibility

The Company contributes towards Corporate Social Responsibility (CSR) activities through Samarth
Yuva Foundation, Kai Shree Marutirao Salokhe Vrudha Va Ardhangvayu Grastha Seva Mandal,
Siddhagiri Gurukul Foundation and Shri Siddhagiri Sansthan Math. The areas for CSR activities are
environmental sustainability, rural development and other social activities. The company has
undertaken the project of rejuvenating abandoned wells in areas in and around Kolhapur.

The company has made a provision of Rs.5.78 million towards CSR expenses for the year 2024-25.

The company has made a provision of Rs.7.41 million towards CSR expenses for the year 2025-26.

19. 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. The primary objective of the Company's
capital management is to maximize the shareholder value and to ensure the Company's ability to
continue as a going concern.

The Company has declared an interim dividend during the quarter ended June 30, 2025 on the equity
shares of the Company at the Board meeting held on April 04, 2025 at Rs 1.515 (15.15%) per equity
share of Rs 10 each. The Company monitors net debt i.e. total debt net off cash and cash equivalent.
Total debt comprises of current borrowings.

No changes were made in the objectives, policies or processes for managing capital during the years
ended 31st March 2026 and 31st March, 2025.

20. FINANCIAL RISK MANAGEMENT

The Company is exposed to various financial risks. These risks are categorized into credit risk and
liquidity risk. The Company's risk management is coordinated by the Board of Directors and focuses on
securing long term and short-term cash flows.

Credit Risk:

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial
instrument fails to meet its contractual obligations, and arises principally from the Company's
receivables from customers. Credit risk is managed through credit approvals, establishing credit limits
and continuously monitoring the creditworthiness of customers to which the Company grants credit
terms in the normal course of business. The Company establishes an allowance for doubtful debts and
impairment that represents its estimate of expected losses in respect of trade receivables.

Liquidity Risk:

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they
become due. The Company manages its liquidity risk by ensuring, 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 risk to the Company's reputation.