Provisions and contingent liabilities

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a
past event, it is probable that an outflow of resources embodying economic benefits will be required to
settle the obligation and a reliable estimate can be made of the amount of the obligation. The expense
relating to a provision is presented in the statement of profit and loss net of any reimbursement.

Contingent liabilities are recognized only when there is a possible obligation arising from past events, due to
occurrence or non-occurrence of one or more uncertain future events, not wholly within the control of the
Company or where any present obligation cannot be measured in terms of future outflow of resources or

where a reliable estimate of obligation cannot be made. Contingent assets are not recognized in the financial
statements.

Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability
or equity instrument of another entity.

Financial AssetsInitial recognition and measurement

All financial assets are initially recognized when the Company becomes a party to the contractual provisions
of the instrument. All financial assets are initially measured at fair value plus, in the case of financial assets
not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of
the financial asset.

Subsequent measurement
Classification

For the purpose of subsequent measurement, the Company classifies financial assets in following categories:

Financial assets at amortized cost

Financial assets at amortized cost are subsequently measured at amortized cost using the effective interest
method. The amortized cost is reduced by impairment losses, if any. Interest income and impairment are
recognized in the Statement of Profit and Loss.

Financial assets at fair value through other comprehensive income (FVTOCI)

These assets are subsequently measured at fair value through other comprehensive income (OCI). Changes
in fair values are recognized in OCI and on derecognition, cumulative gain or loss previously recognized in
OCI is reclassified to the Statement of Profit and Loss. Interest income calculated using EIR and impairment
loss, if any, are recognized in the Statement of Profit and Loss.

Financial assets at fair value through profit or loss (FVTPL)

These assets are subsequently measured at fair value. Net gains and losses, including any interest income,
are recognized in the Statement of Profit and Loss.

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

De-recognition

The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial
asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which
substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the
Company neither transfers nor retains substantially all of the risks and rewards of ownership and it does not
retain control of the financial asset. If the Company enters into transactions whereby it transfers assets
recognized on its balance sheet, but retains either all or substantially all of the risks and rewards of the
transferred assets, the transferred assets are not derecognized. Any gain or loss on derecognition is
recognized in the Statement of Profit and Loss.

Impairment of financial assets

The Company applies the expected credit loss model for recognizing impairment loss on financial assets
measured at amortized cost, lease receivable, trade receivable other contractual rights to receive cash or
other financial assets. For trade receivable, the Company measures the loss allowance at an amount equal
to life time expected credit losses. Further, for the measuring life time expected credit losses allowance for
trade receivable the Company has used a practical expedient as permitted under Indian AS 109. This
expected credit loss allowance is computed based on provisions, matrix which takes into account historical
credit loss experience and adjusted for forward looking information.

Financial LiabilitiesInitial recognition and measurement

All financial liabilities are initially recognized when the Company becomes a party to the contractual
provisions of the instrument. All financial liabilities are initially measured at amortized cost unless at initial
recognition, they are classified as fair value through profit or loss. In case of trade payables, they are initially

recognizing at fair value and subsequently, these liabilities are held at amortized cost, using the Effective
interest method.

Classification and subsequent measurement

Financial liabilities are classified as measured at amortized cost or FVTPL.

A financial liability is classified as FVTPL if it is classified as held-for-trading, or it is a derivative or it is
designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net
gains and losses, including any interest expense, are recognized in the Statement of Profit and Loss.

Financial liabilities other than classified as FVTPL, are subsequently measured at amortized cost using the
effective interest method. Interest expense is recognized in Statement of Profit and Loss. Any gain or loss on
derecognition is also recognized in the Statement of Profit and Loss.

De-recognition

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or
expires. When an existing financial liability is replaced by another from the same lender on subsequently
different terms, or the terms of an existing liability are subsequently modified, such an exchange or
modification is treated as the derecognition of the original liability and the recognition of the new liability.
The difference in the respective carrying amount is recognize in the Statement of Profit & Loss.

Offsetting of financial instruments

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

Recent accounting pronouncements

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as issued from time to time. During the year ended March
31, 2026, MCA has notified the Companies (Indian Accounting Standards) Amendment Rules, 2025
applicable to the company w.e.f. 1st April, 2025.

Amendments to Ind AS 21 - Lack of exchangeability

The amendment requires the Effects of Changes in Foreign Exchange Rates to specify how an entity should
assess whether a currency is exchangeable and how it should determine a spot exchange rate when
exchangeability is lacking. The amendments also require disclosure of information that enables users of its
financial statements to understand how the currency not being exchangeable into the other currency affects,
or is expected to affect, the entity's financial performance, financial position and cash flows.

The amendments are effective for annual reporting periods beginning on or after 1st April 2025. When
applying the amendments, an entity cannot restate comparative information. The amendments do not have
a material impact on the financial statements.

Amendments to Ind AS 1 - Classification of Liabilities as Current or Non-current and Non-current Liabilities
with Covenants

In August 2025, the MCA notified amendments to paragraphs 69 to 76 of Ind AS 1 to specify the requirements
for classifying liabilities as current or non-current. The amendments clarify:

• What is meant by a right to defer settlement

• That a right to defer must exist at the end of the reporting period

• That classification is unaffected by the likelihood that an entity will exercise its deferral right

• That only if an embedded derivative in a convertible liability is itself an equity instrument would the terms
of a liability not impact its classification in addition; a requirement has been introduced to require disclosure
when a liability arising from a loan agreement is classified as non-current and the entity's right to defer
settlement is contingent on compliance with future covenants within twelve months.

The amendments do not have an impact on the Financial Statements.

Amendments to Ind AS 7 and Ind AS 107 - Supplier Finance Arrangements

MCA via notification dated 13 August 2025 announced amendments to Ind AS 7 - "Statement of Cash Flows"
and Ind AS 107 "Financial Instruments: Disclosures" which introduced disclosure requirements with the
objective to enable users of financial statements to assess how supplier finance arrangements affect an
entity's liabilities, cashflows and exposure to liquidity risk.

The amendments do not have an impact on the Financial Statements.

International Tax Reform-Pillar Two Model Rules - Amendments to Ind AS 12

MCA via notification dated 13 August 2025 announced amendments to Ind AS 12 "Income Taxes" which
includes:

• a temporary exception to the recognition and disclosure of deferred taxes arising from the implementation
of the Pilar Two model rules; and

• additional disclosure requirements targeted at a reporting entity's exposure to income taxes in periods in
which the Pillar Two Model legislation is enacted or substantively enacted but not yet in effect.

The amendments do not have an impact on the Financial Statements.

Amendments to Ind AS 1 - Classification of Liabilities as Current or Non-current and Non-current Liabilities
with Covenants

This amendment also includes specific provisions that will take effect for reporting periods beginning on or
after 1 April 2026, as outlined below.

Under the existing Ind AS 1, where there is a breach of a material provision of a long-term loan arrangement
on or before the end of the reporting period with the effect that the liability becomes payable on demand
on the reporting date, the entity does not classify the liability as current, if the lender agreed, after the
reporting period and before the approval of the financial statements for issue, not to demand payment as a
consequence of the breach.

However, the amended requirements stipulate that entities will no longer be permitted to consider lender
waivers that are granted after the reporting date but before the financial statements are approved for the
purpose of classification of loans. This amendment is required to be applied retrospectively in accordance
with Ind AS 8.

This amendment is not expected to have an impact on the Financial Statements.

Nature and Purpose of Reserves:

Securities Premium

Securities premium represents the premium received on issue of shares over and above the face value of equity shares. The reserve can be utilised only for
limited purposes such as issuance of bonus shares in accordance with the provisions of the Companies Act, 2013.

Retained Earnings

Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to
shareholders. Retained earnings represent the amount that can be distributed as dividend considering the requirements of the Companies Act, 2013. During
the year, no dividends are distributed to the equity shareholders by the Company.

(B) Other Statutory Information

1 There are no proceedings initiated or pending against the company under Section 24 of The Prohibition of Benami Property, 1988 and rules made
thereunder for holding any benami property.

2 The company has not been declared wilful defaulters by any bank or financial institution or consortium thereof in accordance with the guidelines
on wilful defaulters issued by RBI.

3 The company does not have any transactions with struck off under Section 248 of the Companies Act, 2013.

4 There is no charge or satisfaction of charge which is yet to be registered with ROC beyond the statutory period.

5 The company has complied with the number of layers prescribed under Section 2(87) of the Companies Act, 2013 read with the Companies

(Restriction on Number of Layers) Rules, 2017.

6 The company has not entered into any scheme of arrangement in terms of Section 230 to 237 of the Companies Act, 2013.

7 The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kinds of funds) to
any other person or entity, including foreign entities ("Intermediaries") with the understanding (whether recorded in writing or otherwise) that the
intermediary shall, whether directly or indirectly lend or invest in other person / entities identified in any manner whatsoever by or on behalf of the
company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of Ultimate Beneficiaries.

8 The Company has not received any fund from any other person or entity, including foreign entities ("Funding Party") with the understanding

(whether recorded in writing or otherwise) that the company shall directly or indirectly lend or invest in other person / entities identified in any
manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of

9 The company does not have any transaction not recorded in the books of accounts that has been surrendered or not disclosed as income during
the year in tax assessments under the Income Tax Act, 1961.

10 The company has not traded or invested in Crypto Currency or Virtual Currency during the reporting periods.

11 The company has not been sanctioned working capital limit in form of term loans and overdraft facilities.

12 There are no immovable property in the books of the company whose title deed is not held in the name of the company.

32. Financial Instruments - Accounting Classifications and Fair Value Measurements

The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between
willing parties, other than in a forced or liquidation sale.

The following methods and assumptions were used to estimate the fair values:

1) Fair values of cash and short term deposits, trade and other short term receivables, trade payables, other current liabilities, short term loans approximate their
carrying amounts largely due to short-term maturities of these instruments.

2) Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual credit
worthiness of the counterparty. Based on the evaluation, allowances are taken to account for the expected losses of these receivables.

The company uses the following hierarchy for determining and disclosing the fair values of financial instruments by valuation technique:

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 effects on the recorded fair value are observable, either directly or indirectly.

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

33. Financial risk management objectives and policies
Risk management framework

The Company's board of directors has overall responsibility for the establishment and oversight of the Company's risk management framework. The board of
directors has established the Risk Management Committee (RMC) which is responsible for developing and monitoring the Company's risk management policies.

The Company's risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and control and
monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company's
activities.

The Company's activities expose it to market risk, liquidity risk and credit risk which are measured, monitored and managed to abide by the principles of risk
management.

i) Credit Risk

Credit risk arises when a customer defaults on its contractual obligations to pay, resulting in financial loss to the Company. The Company has adopted a policy of
categorising the customers based on the performance and accordingly credit limit ceiling of each category is defined. The Company's exposure and categorisation
of its customers are continuously monitored. Credit exposure is controlled by customer credit limits which are reviewed and approved.

The Company applies the simplified approach to providing for expected credit losses prescribed by Ind AS 109, which permits the use of the lifetime expected loss
provision for all trade receivables.

There is no change in estimation techniques or significant assumptions during the reporting period.

ii) Liquidity Risk

The board of directors has established an appropriate liquidity risk management framework for the management of the Company's short, medium and long-term
funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing
facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

iii) Market Rate Risk

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
two types of risk: interest rate risk and currency risk. Financial instruments affected by market risk include loans and borrowings, deposits and derivative financial
instruments.

The objective of market risk management is to avoid exposure in our foreign currency transactions and interest rate risk.

a) Interest Rate Risk

Interest rate risk is measured by using the cash flow sensitivity for changes in variable interest rates. Any movement in the reference rates could have an impact
on the Company's cash flows as well as costs. The Company has no interest bearing liabilities as on the balance sheet date.

b) Foreign currency risk

During the current financial year the company has not done any transactions with other countries or in other currencies due to which the company is not exposed
to any foreign currency risk.

iv) Capital management

The Company manages its capital to ensure that the Company will be able to continue as going concern while maximising the return to stakeholders through
optimisation of debt and equity balance. The Company monitors capital using gearing ratio, which is net debt (borrowings less cash and bank balances) divided by
total equity.

34. Segment Information

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (CODM). The CODM is
considered to be the Board of Directors who makes strategic decisions and is responsible for allocating resources and assessing performance of the operating
segments.

An Operating Segment is component of the Company that engages in business activities from which it may earn revenues and incur expenses, including revenues
and expenses that relate to transactions with any of the Company's other components, and for which discrete financial information is available.

Manufacturing & Trading in Textile is the Company's only business segment ,hence the disclosure of segment wise information as required by Ind AS 108 on
"Segment Reporting” is not applicable. Further, there are no export sales and hence there is no reportable secondary segment as per Ind AS 108.

35. Employee Benefits

The provision of gratuity is not made by the Company. However, if payment on account of gratuity arises due to happening of any incidents as provided under the
applicable provisions of law, the same will be accounted for cash basis. Also, as per the company's policy, paid absences not utilised for the year are lapsed, hence
the provision for the paid absences is not applicable to the company.

36. Audit Trail

The Company uses an accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has
operated throughout the year for all relevant transactions recorded in the accounting software. Further no instance of audit trail feature being tampered with was
noted in respect of the accounting software.

37. Note on New Labour Code

On November 21, 2025, the Government of India notified four new Labour Codes (the Code on Wages, 2019, the Code on Social Security, 2020, the Industrial
Relations Code, 2020, and the Occupational Safety, Health and Working Conditions Code, 2020), consolidating 29 existing labour laws. The Ministry of Labour &
Employment published draft Central Rules and FAQs to enable assessment of the financial impact arising from changes in regulations and the Company has
assessed and accounted for the incremental impact of these changes in accordance with the guidance provided by the Ministry of Labour & Employment and the
Institute of Chartered Accountants of India. Based on its assessment, the Company has considered and evaluated the impact of the new Labour Codes and
concluded that there is no material impact on its financial statements.

38. Disclosure Regarding Derivative Instruments and Unhedged Foreign Currency Exposure

i) The company does not have any Foreign currency exposures which is not covered by derivative instruments or otherwise as at March 31, 2026 & March 31,
2025.

ii) The Company does not have any outstanding foreign currency derivative contracts as at March 31, 2026 & March 31, 2025 in respect of various types of
derivative hedge instruments and nature of risk being hedged.

iii) The Company does not enters into derivative financial instruments such as foreign currency forward and option contracts to mitigate the risk of changes in
exchange rates on foreign currency exposures.

39. Events Occuring after the reporting period

The Company evaluates events and transactions that occur subsequent to the balance sheet date but prior to the approval of financial statements to determine
the necessity for recognition and/or reporting of any of these events and transactions in the financial statements. As of the date of signing of this financial
statements, there were no subsequent events to be recognised or reported that are not already disclosed.

39. Previous Year's figures have been regrouped and reclassified, wherever necessary to correspond with the current year's classification/disclosure.

40. The Standalone financial statements were authorized for issue in accordance with a resolution passed by the Board of Directors and are subject to final
approval by its Shareholders.