L. Provision, Contingent Liabilities and Contingent Assets:

A Provision is recognized when an enterprise has a present obligation as a result of past event and it is probable that an
outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made.

Provisions are determined based on management estimate required to settle the obligation at the balance sheet date.
These are reviewed at each balance sheet date and adjusted to reflect the current management estimates. Contingent
Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in
the financial statements.

M. Derivatives:

The Company uses foreign exchange forward contracts to hedge its exposure to movements in foreign exchange rates.
The use of these foreign exchange forward contracts reduces the risk or cost to the Company and the Company does not
use the foreign exchange forward contracts for trading or speculation purposes. The Company records the gain or loss
on change in fair value of cash flow hedges in the Statement of Profit and Loss of that period through other
comprehensive income.

N. Gratuity and other post-employment benefits

The Company recognizes contribution paid or payable to the provident fund as an expense.

Leave encashment is accounted for on the basis of accumulated leave to the credit of employees at the year end.

Gratuity which are defined benefits are accrued based on actuarial valuation as at the Balance Sheet date. The Company
contributes to a defined benefit gratuity plan through Life India Corporation, which requires contributions to be made to
a separately administered fund. The cost of providing benefits under the defined benefit plan is determined using the
projected unit credit method. Remeasurements comprising of actuarial gains and losses, the effect of the asset ceiling,
excluding amounts included in net interest on the net defined benefit liability and the return on plan assets (excluding

amounts included in net interest on the net defined benefit liability), are recognized immediately in the balance sheet

with a corresponding debit or credit to retained earnings through OCI in the period in which they occur.

Remeasurements are not reclassified to profit or loss in subsequent periods.

Net interest is calculated by applying the discount rate to the net defined benefit liability or asset. The Company

recognizes the following changes in the net defined benefit obligation as an expense in the statement of profit and loss:

• Service costs comprising current service costs, past-service costs, gains and losses on curtailments and non¬
routine settlements; and

• Net interest expense or income.

O. Earnings Per Share Basic earnings per shareBasic earnings per share is calculated by dividing:

- the profit attributable to owners of the Company

- by the weighted average number of equity shares outstanding during the financial year, adjusted for bonus
elements in equity shares issued during the year and excluding treasury shares.

Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings 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 outstanding assuming the
conversion of all dilutive potential equity shares.

b) Terms / rights attached to equity shares

i) The Company has one class of equity shares having a par value of Rs. 5 per share. Each holder of equity shares
is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend
proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual
General Meeting.

ii) In the event of the liquidation of the Company, the equity share holders will be entitled to receive remaining
assets of the Company after distribution of all preferential amounts. The distribution will be in proportion to
the number of equity shares held by the share holders.

a) Securities Premium Reserve : Securities Premium Reserve is used to record the premium on issue of shares. This
reserve is utilised in accordance with the provision of the Act.

b) General Reserve : The Company has transferred a portion of Net Profit to General Reserve. Mandatory transfer to
General Reserve is not required under the Companies Act 2013.

c) Retained Earnings : Retained Earnings are the profit, the company has earned till date, less any transfer to general
reserve, dividend or other distributions paid to shareholders.

32 The Company is engaged only in Textile business and there are no separate reportable segments as per Ind AS 108.

33 Related Party Disclosures

As per Accounting Standard 24, the disclosures of transactions with the related parties as defined in the Accounting
Standard are given below.

List of related parties where control exists and related parties with whom material transactions have taken place
and relationships:

(a) Key Management Personnel (KMP)

Shri Arunkumar Biyani - Chairman & Director

Shri Aman. Biyani - Managing Director

Shri Aditya. Biyani - Whole-Time Director

Shri Subrat Shukla - Company Secretary

Shri Sheetal Prashad Singhal -Chief Financial officer

(b) Relatives of Key Management Personnel (KMP) :

" Mrs. Kanta Biyani, Mr. Aman Biyani, Mr. Akshay Biyani, Mrs. Manju Biyani, Mrs. Sanju Biyani, Ms. Risha Biyani, Mrs.
Payal Biyani, Mrs. Bhawna Biyani, Mrs. Savitridevi D Biyani, Mr. Aditya Biyani, Ms. Reiya Biyani, Ms. Jia Biyani, Ms.
Kiara Biyani, Mrs. Radhika Biyani, Master Yuvan Biyani, Mr. Abhishek Biyani, Ms. Aarika Biyani, Ms. Anushree Biyani
& Ms Janvi Biyani "

(c) Other Related Parties (Enterprises - KMP having significant influence / Owned by Major Shareholders)

" M/s. Shri Damodar Yarn Manufacturing Pvt.Ltd., M/s. RRKJ Warehouse, M/s. Calves & Leaves Initative Pvt. Ltd.,
M/s. Suam Overseas Pvt. Ltd., M/s. Damosuam carriers Pvt. Ltd., Ajay Biyani HUF, Arun Kumar Biayni HUF & Shri
Damodar Foundation."

34 Defined Benefit Plan :- Gratuity (Funded)

The employees' gratuity fund scheme managed by Life Insurance Corporation. The present value of the obligation is
determined based on actuarial valuation using the Projected unit Credit Method, which recognises each year of service
as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final
obligation.

# The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority,
promotion and other relevant factors including supply and demand in the employment market. The above information is
certified by the actuary.

VI) Risk Exposure - Asset Volatility

The plan liabilities are calculated using a discount rate set with reference to bond yields; if plan assets underperform this
yield, this will create a deficit. Most of the plan asset investments is in fixed income securities with high grades and in
government securities. These are subject to interest rate risk and the fund manages interest rate risk derivatives to
minimize risk to an acceptable level.

36 Fair value measurement

Financial Instrument by category and hierarchy

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 value of cash and short-term deposits, trade and other short term receivables, trade payables, other current
liabilities, short term loans from banks and other financial institutions 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 this evaluation, allowances are
taken to account for expected losses of these receivables. Accordingly, fair value of such instruments is not
materially different from their carrying amounts."

"3. For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values."

The Company uses the following hierarchy for determining and disclosing the fair value of financial instrument by
valuation technique.

Level 1 : Quoted (unadjusted) price 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.

Financial risk management objectives and policies

In the course of business, the company is exposed to certain financial risk that could have considerable influence on the
Company's business and its performance. These include market risk ( including currency risk, interest risk and other price
risk), credit risk and liquidity risk. The Board of Directors review and approves risk management structure and policies for
managing risks and monitors suitable mitigating actions taken by the management to minimise potential adverse effects and
achieve greater predictability to earnings.

In line with the overall risk management framework and policies, the treasury function provides service to the business,
monitors and manages through an analysis of the exposures by degree and magnitude of risks. It is the Company's policy that
no trading in derivatives for speculative purposes may be undertaken. The company uses derivative financial instruments to
hedge risk exposures in accordance with the Company's policies as approved by the board of directors.

a) Market Risk- Foreign currency risk.

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in
foreign exchange rates. The Company's exposure to the risk of changes in foreign exchange rates relates primarily to its
operating activities. The Company manages its foreign Currency risk by hedging transaction that are expected to occur
within a maximum 12 month periods for hedge of forecasted sales and purchases in foreign currency.

"c) Equity Price Risk"

Equity price risk is related to the change in market reference price of the investments in quoted equity securities. The fair
value of some of the Company's investments exposes the company to equity price risks. At the reporting date, the
company do not hold any equity securities.

"d) Credit Risk"

Customer credit risk is managed by each business unit subject to the Company's established policy, procedures and
control relating to customer credit risk management. Credit quality of a customer is assessed based on customer
profiling, credit worthiness and market intelligence. Trade receivables consist of a large number of customers, spread
across geographical areas. Outstanding customer receivables are regularly monitored.

The average credit period is in the range of 30 -90 days. However in select cases credit is extended which is backed by
security deposit/bank guarantee/letter of credit and other firms. The Company's Trade receivables consist of a large
number of customers, across geographies hence the Company is not exposed to concentration risk.

The Company measures the expected credit loss of trade receivables from individual customers based on historical
trend, industry practices and the business environment in which the entity operates.

e) Liquidity Risk :

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk
management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The
Company has obtained fund and non-fund based working capital limits from various banks. Furthermore, the Company
access to funds from debt markets through short term working capital loans.