S The major amount in this category belongs to Texprint Fashion Pvt Ltd -Rs 298.89 Lakhs. This advance is remitted for procurement of materials and corresponding order is not supplied by the vendor in contracted time. The company has charged Rs 82 Lakhs lor the year ended 31.03.24 in form of interest according to contract terms for which confirmation is not received from the vendor This forms a major amount as compared to size of the company and is material in nature.

Note on Term Loan from Other Parlies

Term Loan of Rs. 19 Crores borrowed from Axis Finance Limited. Tenor: 12 years from initial disbursement.

Security Exclusive First charge on land parcel of 60.8 Acres with built up area of 1,30,000 sq. ft. at Nangangud Industrial Area. Mysore owned by Indus Fila Ltd. Exclusive first charge by way of hypothecation and Escrow of ail the cash flow / rent receivable including any lease deposit or any other receivable from the existing and future potential lessee.

Note on Unsecured loan

The Company has obtained an unsecured loan of Rs. 479 lakhs from Vision Textiles. This loan is interest-free and lacks a specified tenure, making it repayable on demand. Consequently no unwinding interest has been recorded for this loan.

Terms/Rtghls attached to equity share holders

The Company has ohiy one class ol shores. referred fo as equity shares, having o par value of Rs. Wf- Each holder of equity shares is entitled to one vote per shore held.

The Company declcres and pays dividend in Indian rupees. The dividend proposed, if any by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting

Dividend, if any. is poyable to the shareholders in proportion to their shareholding.

The Company has not declared dividend during the years 2017-18. 2018-19. 2019-20 2020-21. 2021-22 2022-23& fill 31st March 2024.

In the eveni of liquidation of the Company the holders ol equity shares will be entitled to receive any of the remaining assets ol the company after distribution of all preferential amounts, in proportion to their shareholding.

Fair Value Heirarchy

Management considers that the carrying amount of those financial assets and financial liabilities , that are not subsequently measured at fair value . in the financial statements approximate their fair values

For financial instruments that are subsequently measured at fair vale, their fair value measurement is grouped into Levels I Jo 3 based on the following fair value hierarchy

Level I :quoted prices (unadjusted) in active markets for identical assets or liabilities

Level 2 :inpu1s other than quoted prices included within level I, that are observable for the asset or liability, either directly (i.e as a pricej or indirectly (i.e derived from prices]

Level 3.derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs)

There are no financial instruments measured at Level I, Level 2,Level 3 of Fair Value Hierarchy as at reporting date

• The carrying amounts of financial instruments carried at amortized cost i.e Trade receivables, Cash and Cash equivalents .other financial' assets.Borrowings .other financial liabilities and trade payables are considered to be the same as their fair values, due to their short term nature

Fair Valuation techniques

Fair value of financial assets and liabilities measured at amortized cost

Trade receivables, cosh and cash equivalents . borrowings,trade payables .other financial assets, other financial liabilities are financial instruments with carrying values that approximate fair value If measured at fair value in the financial statements these financial instruments would be classified as level 3 in the fair value hierarchy

U Term Loan of Rs. 19 Crores borrowed from Axis Finance Limited

2]Securit)':Exclusive First charge on land parcel of 60.8 Acres with built up area of 1,30.000 sq. ft. at Nangangud Industrial Area, Mysore owned by Indus Fila Ltd. Exclusive first charge by way of hypothecation and Escrow of all the cashflow / rent receivable including any lease deposit or any oiher receivable from the existing and future potential lessee.

The company's activities expose il variety' of financial risks : Market risk. Credit risk and Liquidity risk. The company's focus is to foresee the unpredictability of financial markets and seek lo minimize potential adverse effects on its linancial performance. The Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk management framework. The Board of Directors has established a risk managemenl policy to identify and analyze Ihe risks laced by the Company, lo sel appropriate risk limits and confrois. and to monitor risks and adherence to limits. Risk management systems are reviewed periodically to reflect changes in market conditions and Ihe Company's activities. The Board of Directors oversee compliance with Ihe Company's risk management policies and procedures, and reviews the risk management framework.

A) Market risk

The market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Markel risk comprises three types of risk: Foreign currency risk, interest rale risk and other price risk.

i Foreign Currency Risk

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

The company is noi exposed to foreign currency risk as il has no borrowings in foreign currency and also the company doesn't have any receivable or payable amounts in foreign currency.

ii Cash flow and fair value Interest rate risk

Interest rate risk is Ihe risk Ihot fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest The Interest risk arises to the company mainly from Long term borrowings, bank overdrafts with variable rates. The company measures risk through sensitivity analysis.

iii Price risk

Price risk is the risk that the fair value or future cash (lows of a financial instrument will fluctuate becouse of changes in market prices (other then those arising from interest rate risk or currency risk)

The company is noi exposed to price risk os there are no investments.

B) liquidity risk

Liquidity risk is the risk thot an entity will encounter difficulty In meeting obligations associated with financial liabilities that are settled by delivering cash or onother financial assets.

Prudent liquidity risk managemenl implies maintaining sulficient cash and the availability of funding to meet obligations when due.

Liquidity risk arises in situations where (lie company has difficulties in obtaining funding

The company monqges its liquidity risk by conlinuousiy monitoring rolling forecasts of the company's liquidity requirements actual cash

. flows available* and tn^_di_u*-dnte* of financial assets and liabilities _—~—_

Cl. Credit risk

Credit risk is the risk that a counter party will default on its contractual obligations resulting in financial loss to the company. Credit Risk encompasses of both .the direct risk of default and the risk of deterioration of creditworthiness as well as concentration risks.

Credit risk arises from cash and cash equivalents , deposits with banks and financial institutons. as well as credit exposure to Trade receivables.

The maximum exposure to credit risk for each class of financial instruments is the carrying amount of that class of financial instruments presented in the financial statements

The company's major class of financial assets are cosh and cash equivalents .Security deposits and trade receivables.

For Banks and financial institutions, only high rated banks/Financiai institutions are accepted.

Company's Credit Risk arises principally from Trade Receivables.

Trade Receivables:

Trade receivables are primarily short term receivables from customers which arise in fhe normal course of business.

Credit worthiness of Customers are being assessed before making sales to the customers.

The outstanding Trade receivables are regularly monitored and appropriate action is taken for collection of overdue receivables.

Provision for bad and doubtful debts was made in previous years where recoverability from trade receivable was not considered certain.

d) Capital management

(a) Risk management

The company's objectives when managing capital are to safeguard ihe company's ability lo continue as a going concern in order to provide returns for shareholders benefits for other stakeholders and to maintain an opiimal capital structure to reduce the cost of capital. In order to maintain or adjust the capiial stiuciure , the company may issue new shares or sell assets to reduce debt

The company periodically reviews and manages its capital slrucfure to ensure optimal capital structure and shareholder returns, taking into consideration Ihe future capital requirements and capital efficiency of the company . prevailing and projected profitability . projected operating cash flows, and projected capital expenditures.

fn aider to maintain or odjusi the capital structure , Ihe company may use internal funding to reduce debt.

(b) Dividends

No Dividends have been issued/Proposed by Ihe company during ihe last 3 financial years(F.Y.2025-26.2024-25. 2023-24)

c) Disclosure pursuant to Accounting Standard - IS - Employee Rcnefll r

There are no employees who are eligible for gratuity as on 31.03,2026. Hence no provision Is considered necessary

d) The Company Is nol in the possession ot details required for the purpose of classification of creditors as per Micro. Small and Medium Enterprises Development Act 2006. Hence the company is unable to turnish the information required under the said Act.

e) Balances In certain poriv's accounts are subject to reconciliation and consequent adjustments fhereot. In the opinion of the management the impact of such adjustments, if any on the financial results would be no! moterial

f) (b): In case or income lax department there is a TDS liability of Rs 1.75.1270? belonging to period before NCLT order. In the opinion of the management this liability is to be written oif as per NCLT order but the department has yet not accepted it Management Is in the process to file an appeal and waiver of the said demand

g) The company does not hove information on Ihe status of its suppliers, whether they ore under the Micro .Small or Medium category under the MSME Act. 2CG6. As a result, the amounts due or payable to creditors are not separately disclosed as required under the Companies Act. Additionally, the company does not have information on whether its suppliers are registered under Ihe Micro. Small & Medium Enterprises Development Act. 2006. Therefore, the management is unable to cclculoie the interest poid or payable under Section 23 of that Act

h) The company underwenl NCLT proceedings, resulting in irregularities in its fisting status. Following Ihe NCLT court order, new promoters hove taken over The management is now engaged in compliance procedures lo meet listing norms and relist Ihe company on Ihe stock exchanges once all requirements are fulfilled

I) All three directors of the Company are listed as Additional Directors on the MCA portal As the Company is preparing for relisting, it will reconstitute the board in accordance with regulatory requirements during the current financial year 2025-26.

j) The Company has not constituted an Audit Committee as required by Section 177 ol the Companies Act. 2013.