1.16 Provision, Contingent Liabilities and Contingent Assets, legal or constructive

Provisions are recognised when there is a present obligation as a result of a past event and it
is probable that an outflow of resources embodying economic benefits will be required to settle
the obligation and there is a reliable estimate of the amount of the obligation. Provisions are
measured at the present value of management's best estimate of the expenditure required to
settle the present obligation at the end of the reporting period. The discount rate used to deter¬
mine the present value is a pre-tax rate that reflects current market assessments of the time
value of money and the risk specific to the liability. The increase in the provision due to the
passage of time is recognised as interest expense.

A disclosure for contingent liabilities is made when there is a possible obligation arising from
past events, the existence of which will be confirmed only by the occurrence or non-occur¬
rence of one or more uncertain future events not wholly within the control of the Company or a
present obligation that arises from past events where it is either not probable that an outflow of
resources will be required to settle or a reliable estimate of the amount cannot be made.

When there is a possible obligation or a present obligation and the likelihood of outflow of
resources is remote, no provision or disclosure for contingent liability is made.

Contingent Assets are not recognised but are disclosed when an inflow of economic benefits
is probable.

1.17 Employee Benefits

1.17.1 Short-term Employee Benefits

These are recognised at the undiscounted amount as expense for the year in which

the related service is rendered.

1.17.2 Post-employment Benefit Plans
(a) Defined Contribution Plans

i. Gratuity Plan

• The Company has Defined Benefit Plan for post-employment benefit in the form of
gratuity for eligible employees which is administered through a group gratuity policy
with Life Insurance Corporation of India (L.I.C). The liability for the above defined benefit
planis provided on the basis of an actuarial valuation as carried out by L.I.C. The actu¬
arial method used for measuring the liability is the Project Unit Credit method.

• In case of Unfunded Gratuity, payable to all eligible employees of the Company on
death, permanent disablement and resignation as the provisions of the Payment of
Gratuity Act or as per the company’s scheme, whichever is more beneficial. Benefit
would be paid at the time of separation based on the last drawn basic sal¬
ary.

ii. Leave Encashment

Eligible employees can carry forward and encash leave upto death, permanent disable¬
ment and resignation subject to maximum accumulation allowed upto 15 days for em¬
ployees. The leave over and above 15 days is paid to employees as per the balance as
on 31st March every year. Benefit would be paid at the time of separation based on the
last drawn basic salary.

1.17.3 Bonus plans

The Company recognizes aliability and an expense for bonus. The Company recog¬
nizes a provision where contractually obliged or where there is a past practice that has
created aconstructive obligation.

1.18 Equity

Equity shares are classified as equity. Incremental costs directly attributable to the issue of
new shares are shown in equity as a deduction, net of tax, from the proceeds.

1.19 Dividends

Provision is made for the amount of any dividend declared, being appropriately authorised and
no longer at the discretion of the Company, on or before the end of the reporting period but not
distributed at the end of the reporting period.

1.20 Earnings per Share

1.20.1 Basic earnings per shar

Basic earnings per share is calculated by dividing :

The profit/ loss attributable to owners of the Company

By the weighted average number of equity shares outstanding during the financial year.

1.20.2 Diluted earnings per share

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

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

The weighted average number of additional equity shares that would have been out¬
standing assuming the conversion of all dilutive potential equity shares.

1.21 Leases

Leases in which a significant portion of the risks and rewards of ownership are not transferred
to the Company as lessee are classified as operating leases. Payments made under operat¬
ing leases (net of any incentives received from the lessor) are charged to statement profit and
loss on a straight line basis over the period of the lease unless the payments are structured to
increase in line with expected general inflation to compensate for the lessor's expected infla¬
tionary cost increases.

1.22 Impairment of non-financial assets.

Assets are tested for impairmentwhenever events or changes in circumstances indicatethat
the carrying amount may not be recoverable. An impairment loss is recognised for the amount
by which theasset's carrying amount exceeds itsrecoverable amount. The recoverable amount
is thehigher of an asset's fair value less costs of disposal and value in use. For the purpose of
assessing impairment, assets are grouped at the lowest levels for which there are separately
identifiable cash flows which arelargely independent of the cash flows from other assets or
group of assets (cash-generating units). Non-financial assets that sufferedan impairment are
reviewed for possible reversal of the impairment atthe end of each reporting period.

1.23 Derivatives

a) a) The Company enters into Forward Foreign exchange contracts/Option contracts (de¬
rivatives) to mitigate the risk of change in Foreign Exchange Rate on forecasted transac¬
tions. The company enters into Derivative Financial Contracts where the counterparty
isbank. Gain/Losses on in effective transactions of derivative contracts are recognised
in the Statement of Profit & Loss Account as they arise andreported in accordance with
IND AS 21.

b) Accounting for Forward Foreign Exchange Contracts are Marked to Market (M to M)
basis and the net loss after considering the offsetting effects on the underlying contracts,
ischarged to the statement of profit & Loss in accordance with IND AS 21. Net Gains on
M to M are ignored. Reporting and disclosures of such amounts are donein accordance
with guidelines issued by ICAI.

1.24 Offsetting financial instruments

Financial assets and liabilities are offset and the net amount is reported in the balance sheet
where there is a legally enforceable right to offset the recognized amounts and there is an
intention to settle on a net basis or realise the asset and settle the liability simultaneously. The
legally enforceable right must not be contingent on future events and must be enforceable in

the normal course of business and in the event of default, insolvency or bankruptcy of the
Company or the counterparty.

1.25 Use of Estimates

The Preparation of financial statements in conformity with the generally accepted accounting
principles in India requires the management to make estimates and assumptions that affects
the reported amount of assets and liabilities as at the balance sheet date, the reported amount
of revenue and expenses for the periods and disclosure of contingent liabilities at the balance
sheet date. The estimates and assumptions used in the financial statements are based upon
management's evaluation of relevant facts and circumstances as of the date of financial state¬
ments. Actual results could differ from estimates.

1.26 Borrowing costs

Interest and other borrowing costs attributable to qualifying assets (PPE) are capitalised. Other
interest and borrowing costs arecharged to Statement of Profit and Loss.

31. Exceptional Item Disclosure :

During the year ended 31st March, 2025, the Company sold its office premises located at Bhagalpur, Bihar, for a total
Consideration R450.19 Lacsresulting in a net gain R447.99 Lacs. This gain has been recognised in the Statement of
Profit & Loss and presented as a seperately disclosed item to reflect its exceptional and non-recurring nature. The asset
was not classified as held for sale and was derecognised in accordance with Ind AS 16 - Property, Plant and Equipment.

32. During the year, one Unit of the Company M/s Zenith Textiles-Mysore (EOU) has written off Rs.345.93 Lacs out of
inventory of Finished Goods due to fungal infection, rendering the product unfit for sale. This was written off after
obtaining permission from The Deputy Commissioner of Customs, EPC Cell, Mysuru. The said finished goods have
been physically burnt and intimated to the Dy Commissioner of Customs.

45 Financial instruments and Risk management

45.1 Capital management

Capital management is driven by Company's policy to maintain a sound capital base to support the continued develop¬
ment of its business. The Management seeks to maintain a prudent balance between different components of the
Company's capital. The Management the monitors capital structure and the net financial debt. Net financial debt is
defined as current and non-current financial liabilities less cash and cash equivalents and short term investments. The
debt equity ratio highlights the ability of a business to repay its debts. Accordingly the management periodically reviews
and sets prudent limit on overall borrowing limits of the Company.

45.2 Categories of financial instruments
Fair Value hierarchy

The following table provides the fair value measurement hierarchy of Company's asset and liabilities, grouped into
Level 1 to Level 3 as described below:

Level 1: It includes fair value of financial instruments traded in active markets and are based on quoted market prices
at the balance sheet date like mutual fund. The mutual fund are valued using the closing market price as at the
balance sheet date.

Level 2: It includes fair value of the financial instruments that are not traded in an active market like over-the-counter
derivatives, which is valued by using valuation techniques. These valuation techniques maximise the use of observ¬
able market data where it is available and rely as little as possible on the specific estimates. If all significant inputs
required to fair value if instrument are observable then instrument is included in level 2.

Level 3: Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs).
If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

45.3 Financial risk management

The financial risks emanating from the Company's operating business include market risk, credit risk and liquidity risk.
These risks are Company using managed by the appropriate financial instruments.

45.4 Market risk management

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in
market prices. Market risk comprises of Currency risk, Interest rate risk and other price risk.

45.5 Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in foreign exchange rate.

The Company operates internationally and is exposed to the foreign exchange risk arising from foreign currency transac¬
tions, primarily with respect to the USD, EURO and GBP Foreign exchange risk arises from future commercial transac¬
tions. The objective of the hedges is to minimise the volatility of the INR cash flows of highly probable forecast transac¬
tions.

The Company, as risk management policy, hedges foreign currency transactions to mitigate the risk exposure and
reviews periodically to ensure that the results from fluctuating currency exchange rates are appropriately managed.

45.6 Credit Riak

Credit risk refers to the risk of financial loss arising from default / failure by the counterparty to meet financial obligations
as per the terms of contract. The Company is exposed to credit risk for receivables, cash and cash equivalents and
derivative financial instruments. None of the financial instruments of the Company result in material concentration of

Credit risk on receivables is minimum since sales through different mode are made after judging credit worthiness of the
customers, advance payment or against letter of credit by banks. The history of defaults has been minimal and out¬
standing receivables are regularly monitored. For credit risk on the loans to parties, the Company is not expecting any
material risk on account of non-performance by any of the parties.

For derivative and financial instruments, the Company manage & its credit risks by dealing with reputable banks and
financial institutions.

Credit risk from balances with banks is manages by constant monitoring in accordance with the Company's policy.
Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each
counterparty.The limits are set to minimise the concentration of risks and therefore mitigate financial loss through
counterparty's potential failure to make payments.

The carrying value of the financial assets represent the maximum credit exposure. The maximum exposure to credit risk
at the reporting date is the carrying value of each class of financial assets.

45.7 Interest rate risk management

The Company does not have interest rate risk exposure at the end of the year.

45.8 Price risk

The Company is not an active investor in equity markets; so it is not exposed to price risk.

45.9 Other Financial Assets

The Company maintains exposure in cash and cash equivalents, fixed deposits with banks. Investment of surplus funds
are made only with approved counterparties. The maximum exposure to credit risk at the reporting date is the carrying
value of each class of financial assets.

45.10 Agricultural Risk

Cultivation of Eucalyptus trees being an agricultural activity, there are certain specific financial risks. These financial risks
arise mainly due to adverse weather conditions, logistic problems and fire hazards.

The Company manages the above financial risks by keeping Sufficient inventory levels of agro chemicals, fertilisers and
other inputs so that timely corrective can be taken in case of adverse weather conditions.

45.11 Liquidity risk management

The objective of liquidity risk management is to maintain sufficient liquidity to meet financial obligations of the Company
as they become due. The Treasury Risk Management Policy includes an appropriate liquidity risk management frame¬
work for the management of the short-term, medium-term and long term funding and cash management requirements.
The Company manages the liquidity risk by maintaining adequate cash reserves, banking facilities and reserve borrow¬
ing facilities continuously monitoring forecast and actual by cash flows and by matching the maturity profiles of financial
assets and liabilities.

46. No preceedings have been initiated or pending against the company for holding any benami property under the
Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made there under.

49. Borrowinas from Banks:-

All the quarterly returns or statements of current assets filed by the company with banks are in agreement with the books
of accounts.

50. Funds borrowed by the company from banks have been utilised for the specified purpose for which the same have
been borrowed.

51. Previous year's figures have been re-grouped/re-classified wherever necessary to correspond with the current year's
classification/disclosure.

As per our report of even date annexed FOR AND ON BEHALF OF THE BOARD

For V. Goyal & Associates

Chartered Accountants Managing Director : V. Loyalka (DIN: 07315452)

Firm Regn. No. 312136 E Director : U.Loyalka (DIN: 00009266)

Director : R.K.Sarawgee (DIN: 00559970)

Director : K.K.Jain (DIN: 00551662)

(Vinod Kumar Goyal)

^Partner Company Secretary:

^MNO. ⁰⁵⁰⁶⁷⁰ [Anita Kumari Gupta (FCS: 11369)]

^{Place : Kolkata} Chief Financial Officer:

^{Date :} 30052025 [S.K.Kasera (PAN: AFNPK5320D)]