29 ADDITIONAL NOTES TO ACCOUNTS TO FINANCIAL STATEMENT1 Contingent Liabilities and Capital Commitment

The Company had received a Notice for Total Payment of Stamp Duty Amounting to Rs. 27.20 Lakhs and Penalty of Rs. 40.79 Lakhs Totaling to Rs. 67.99 Lakhs. The company made an application under Application for reduction of penalty under Amnesty Scheme - 2022 and received a final Order for payment under Amnesty Scheme to the extend of Rs. 27.20 Lakhs towards Stamp Duty and Penalty Rs. 6.25 Lakhs. The company has paid the said amount on June 24, 2022 under that scheme. The Company has not received the final certificate accepting the said Application for Amnesty Scheme.

Under previous GAAP, Deferred Taxes are recognised for the tax effects of timing difference between accounting profit and taxable profit for the year using the Income Statement approach, Under Ind AS, Deferred Taxes are required to be recognised using the balance sheet approach for future tax consequences of temporary differences between the carrying value of assets and liabilities and their respective tax bases. Further, Deferred Tax asset shall be recognised for the carry forward of unused tax losses and credits to the extent that it is probable that

future taxable profit will be available against which the unused tax losses and credits can be utilised as against virtual certainty for future taxable profit as required by previous GAAP. Due to amendment to the Income Tax Act, 1961 in the Budget 21, the depreciation on Goodwill is no more allowed and the Company has been claiming this benefit till last year. Due to permanent nature of difference because of amendment the WDV of Goodwill is not considered for calculation of Deferred Tax Assets.

Segment Information

The primary segment reporting format is determined to be business segments as the company's risks and rates of return are affected predominantly by differences in the segments being operated, Secondary information is reported geographically. Accordingly, the Company has identified” Textiles”, “ Real Estate Development” as the operating segments.

The Company operates only in India and therefore the analysis of geographical segments is limited to Indian operations only.

management policies and systems are reviewed regularly to reflect changes in market conditions and the Group's activities. The Company's Board of Director oversees how management monitors compliance with the Group's risk management policies and procedures and reviews the adequacy of the risk management framework in relation to the risks faced by the Group. The Board of Directors is assisted in its oversight role by internal audit team. Internal audit team undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the Board of Directors.

Company has exposure to the following risks arising from financial instruments:

• Credit risk;

• Liquidity risk;

• Market risk a Credit risk :

Credit risk arises from the possibility that customers or counterparty to financial instruments may not be able to meet their obligations. To manage this, the Group periodically assesses the financial reliability of customers, taking into account the financial condition, current economic trends, analysis of historical bad debts and ageing of accounts receivable. Credit risks arises from cash and cash equivalents, deposits with banks, financial institutions and others, as well as credit exposures to customers, including outstanding receivables.

The company factors such as track record, size of institutions, market reputation and service standards to select banks with which balances and deposits are maintained. the balances and fixed deposits are generally maintained with the banks with whom the Group has regular transactions. Further, the Group does not maintain significant cash in hand other than those required for its day to day operations. Considering the same, the Group is not exposed to expected credit loss of cash and cash equivalent and bank balances.

The company has established a credit policy under which each new customer is analysed individually for creditworthiness before entering into contract. Sale limits are established for each customer, reviewed regularly and any sales exceeding those limits require approval from the appropriate authority. There are no significant concentrations of credit risk within the Company. b Liquidity risk :

Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Group's approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to Company reputation.

Management monitors rolling forecasts of the company liquidity position and cash and cash equivalents on the basis of expected cash flows to ensure it has sufficient cash to meet operational needs. Such forecasting takes into consideration the company debt financing plans, covenant compliance and compliance with internal statement of financial position ratio targets.

c Market risk

Market risk is the risk that the changes in market prices such as foreign exchange rates, interest rates and equity prices will affect the Company's income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return. The pre dominant currency of the Company's revenue and operating cash flows is Indian Rupees (INR). Company does not have any earnings in foreign currency. There is no foreign currency risk as there is no outstanding foreign currency exposure at the year end.

11 Capital risk management

The managment manages its capital to ensure that it will be able to continue as a going concern so, that they can continue to provide returns for shareholders and benefits for other stakeholders and maintain an optimal capital structure to reduce cost of capital. The managment manages its capital structure and make adjustments to, in light of changes in economic conditions, and the risk characteristics of underlying assets. In order to achieve this overall objective, the Group's capital management, amongst other things, aims to ensure that it meets financial covenants attached to the borrowings that define the capital structure requirements.

Consistent with others in the industry, the Group monitors capital on the basis of the gearing ratio. The ratio is calculated as net debt divided by equity. Net debt is calculated as total borrowing (including current and noncurrent terms loans as shown in the balance sheet).

b. Fair valuation techniques

The Company maintains policies and procedures to value financial assets or financial liabilities using the best and most relevant data available. The fair values of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The management assessed that fair value of Trade receivables (net), Cash and cash equivalents, Loans, Current borrowings, Trade payables and Other current financial liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments. Further, the management has assessed that fair value will be approximate to their carrying amounts as they are priced to market interest rates on or near the end of reporting period.

c. Fair value hierarchy

Financial assets and financial liabilities are measured at fair value in the financial statement and are grouped into three levels of a fair value hierarchy. The three Levels are defined based on the observability of significant inputs to the measurement, as follows:

Level 1 : Quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2 : Other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly.

Level 3 : Techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data.

d. Financial assets/ liabilities measured at fair value

The following table represents the fair value hierarchy of assets and liabilities measured at fair value on a

recurring basis.

e. Valuation techniques used to determine fair value

The level 3 hierarchy includes financial assets measured using inputs that are not based on observable market data (unobservable inputs). Fair values are determined in whole or in part, using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data.

The fair value of Other Equity Shares Investments are similar to carrying amounts as carrying amounts are a reasonable approximately on of the fair values due to its unquoted nature.

Notes:

(i) The above disclosures are given only for non-current financial assets and non-current financial liabilities. Short term financial assets and current financial liabilities (investment, cash and cash equivalents, other receivables, trade payables and other current financial liabilities) represents the best estimate of fair value.

(ii) Management uses its best judgement in estimating the fair value of its financial instruments. However, there are inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates presented above are not necessarily indicative of the amounts that the Company could have realised or paid in sale transactions as of respective dates. As such, fair value of financial instruments subsequent to the reporting dates may be different from the amounts reported at each reporting date.

(iii) There have been no transfers between Level 1 and Level 2 for the years ended March 31, 2025, March 31, 2024.

13 Additional regulatory information required by Schedule III to the Companies Act, 2013

(i) The Company does not have any benami property held in its name. No proceedings have been initiated on or are

pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (as amended in 2016) and rules made thereunder.

(ii) The Company has not traded or invested in Crypto currency or Virtual Currency during the year.

(iii) The Company has not come across any transaction ocurred with struck-off companies under section 248 of the

Companies Act, 2013 or section 560 of the Companies Act, 1956.

(iv) The Company has not been declared wilful defaulter by any bank or financial institution or other lender or government or any government authority.

(v) The Company does not have any charges or satisfaction of charges which is yet to be registered with the Registrar of the Companies beyond the statutory period.

(vi) Utilization of borrowed funds and share premium :

(I) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or

(b) Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

(II) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or

(b) Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

(vii) There is no income surrendered or disclosed as income during the year in tax assessments under the Income Tax

Act, 1961 (such as search or survey), that has not been recorded in the books of account.

Explanation for variance exceeding 25%

1 Current Ratio - There has been increase in Current Asset and decrease in the Current Liabilities during the period/ year ended 31st March, 2025 as compared to earlier years.

2 Debt Service coverage ratio - There has been improvement in operating profits and cash flows during the period/ year ended 31st March, 2025 as compared to earlier years.

3 Return on capital employed - There has been improvement in operating profits and Total Assets during the period/ year ended 31st March, 2025 as compared to earlier years.

15 Quarterly financial results are published in accordance with the guidelines issued by SEBI. The recognition and

measurement principles as laid down in the standards are followed with respect to such results.

1 6 At the balance sheet date, an assessment is done to determine whether there is an indication of impairment in the

carrying amount of the fixed assets. No impairment loss is determined.

17 The Company has not received any information / memorandum from the suppliers ( as required to be filed by

Suppliers / Vendors with the notified authority under Micro, Small and Medium Enterprises Development Act, 2006), claiming their status as Micro, Small or Medium Enterprises. Consequently, the amount paid / payable together with interest paid / payable to these parties under the Act is Nil.

1 8 In terms of provisions of Schedule V of the Companies Act,2013 read with the Companies (Particulars of Employees)

Rules,1975 none of the employees are in receipt of remuneration in excess of Rs 5,00,000 per month or Rs. 60,00,000 p.a.as per the limits stated in the provisions.

19 The disclosures required under Accounting Standard 15 “Em ployee Benefits” notified in the Companies ( Accounting Standard ) Rules 2006 is not relevant to the Company as retirement benefits are not given to the employees of the Company, as company is not covered by The Provident Fund Act, 1948 and The Payment of Gratuity Act, 1972. Thus no actuarial valuation has been done and provided by the Company.

20 Additional information as required by para 5 of General Instructions for preparation of Statement of Profit and Loss (other than already disclosed above) are either Nil or Not Applicable.

21 Previous year's figures have been rearranged / regrouped wherever necessary.