2.16 Provision and Contingencies

A provision is recognised when the Company has a present obligation as a result of past events
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 (excluding retirement benefits) are not
discounted to their present value and are determined based on the best 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 best estimates. Contingent liabilities are disclosed in the
Notes. Contingent assets are not recognised in the financial statements.

2.17 Derivatives and Hedge Accounting

Derivatives are initially recognised at fair value and are subsequently remeasured to their fair
value at the end of each reporting period. The resulting gains/losses is recognised in profit or
loss immediately unless the derivative is designated and effective as a hedging instrument, in
which event the timing of recognition in profit or loss depends on the nature of the hedging
relationship and the nature of the hedged item.

To comply with the principles of ‘fair value hedge’, ‘cash flow hedge’ or ‘hedges of net
investments in foreign operations’ where derivative contracts are designated as hedge
instruments, depending upon documented risk management objective and hedge relationship
established at inception and which are highly effective in offsetting changes in fair values or
cash flows of the hedged item attributable to the hedged risk.

2.18 Operating Segments

Operating segments are reported in a manner consistent with the internal reporting provided to
the chief operating decision-maker. The chief operating decision-maker, who is responsible for
allocating resources and assessing performance of the operating segments, has been identified
as the Corporate Management Committee.

Segments are organized based on business which have similar economic characteristics as
well as exhibit similarities in nature of products and services offered, the nature of production
processes, the type and class of customer and distribution methods. The CODM reviews the
segments primarily from a business similarity perspective as well as from a geographic
perspective.

Segment revenue is reported on the same basis as revenue in the financial statements.
Segment results represents profits before finance charges, investment income and taxes. Inter¬
segment revenue is accounted for on the basis of transactions which are primarily market led.

“Unallocated Corporate Expenses” revenue and expenses relate to initiatives/costs attributable
to the enterprise as a whole and are not attributable to segments.

2.19 Dividend Distribution

To recognised Dividends paid (including income tax thereon) in the financial statements in the
period in which the related dividends are actually paid or, in respect of the Company’s final
dividend for the year, when the same are approved by shareholders.

3. Property, Plant and Equipment and capital work-in-progress Carrying amounts of:

Dues to Micro and Small Enterprises have been determined to the extent such parties have been
identified on the basis of information collected by the Management. This has been relied upon by
the auditors.

31. Employee Benefit Plans

(a) Defined Contribution Plan

The Company makes Provident fund and other funds contributions to defined contribution plans
for qualifying employees. The Company recognised (? '000) 4240 (Year ended 31 March, 2025
(? '000) 4080) for Provident Fund contributions.

In February 2019, the Supreme Court of India in its judgement clarified the applicability of
allowances that should be considered to measure obligations under Employees Provident Fund
Act, 1952. The Company has been legally advised that there are interpretative challenges on
the application of judgement retrospectively and as such does not consider there is any probable
obligations for past periods. Accordingly, based on legal advice the Company has made a
provision for provident fund contribution from the date of the Supreme Court order.

(b) Defined Benefit Plan: Gratuity

Provision is made for gratuity and compensated absences based upon actuarial valuation done
at the end of every financial year using 'Projected Unit Credit' method and it covers all regular
employees. Gains and losses on changes in actuarial assumptions are accounted for in the
Statement of profit and loss.

The Company has funded gratuity with Life Insurance Corporation of India.

The disclosures as required under revised Indian Accounting Standard 19 on "Employee
Benefits" are as follows:

The following table sets out the funded status of the defined benefit schemes and the amount
recognised in the financial statements:

Previous year figures are given in brackets.

Segregation of assets (except trade receivable) into secondary segments has not been done as all
the assets are located and used in India and the Company is of the view that it is not practical to
reasonably allocate such assets and an ad-hoc allocation will not be meaningful.

Information about major customers

Included in revenues arising from direct sales of knitted socks of (In ?'000) 123563, 87296 and 11377
(2023-2024 :(In ?'000) 156671, 81411, Nil and 17109) are revenues of approximately (In ?'000)
216886 (2023 - 2024: (In ?' 000) 255191) which arose from Federation of Migros Co-operative
Society, Buffalo Private Label Limited and HM Sox Limited. No other single customers contributed
10% or more to the revenue for both 2024-2025 and 2023-2024.

36. The Company has not granted any loans / advances in the nature of loans as stipulated in the
Clause 32 of the Listing Agreement with the Stock Exchanges. For this purpose, the loans to
employees as per the Company’s policy and security deposits paid towards premises taken on
leave and license basis have not been considered.

Capital Management and Financial Instrument Disclosures

37. Capital management

The Company manages capital risk in order to maximize shareholders’ profit by maintaining
sound and optimal capital structure through monitoring of financial ratios, such as debt-to-equity
ratio and net borrowings-to-equity ratio on a monthly basis and implements capital structure
improvement plan when necessary. There is no change in the overall capital risk management
strategy of the Company compared to last year.

The Company monitors the total capital as comprising of debt and equity. Debt includes all short
term and long term debts. Equity comprises of total shareholders' equity as reported in the
financial statements.

The Company is not subject to externally enforced capital regulation.

Total Capital as of 31 March 2025 and 31 March 2024 are as follows:

38. Financial Risk Management

The Company's activities expose it to avariety of financial risks: market risk, credit risk, liquidity
risk. The Company's primary focus is to foresee the unpredictability of financial markets and seek
to minimize potential adverse effects on its financial performance. The primary market risk to the
Company is foreign exchange risk. The Company uses derivative financial instruments to mitigate
foreign exchange related risk exposures. The Company's exposure to credit risk is influenced
mainly by the individual characteristic of each customer.

Market Risk

Market risk is the risk that changes in market prices such as foreign exchange rates, interest rates
and equity prices could affect the Company’s income or the value of its holdings of financial
instruments including cash flow. The objective of market risk management is to manage and
control market risk exposures within acceptable parameters, while optimizing the return. The
Company uses derivatives to manage market risks.

All such transactions are carried out within the guidelines set by the Board of Directors. Generally,
the Company seeks to apply hedge accounting to manage volatility in profit or loss."

Currency Risk

The Company undertakes transactions denominated in foreign currencies. Consequently,
exposures to exchange rate fluctuations arise. The Company’s exposure to currency risk relates
primarily to the Company's operating activities and borrowings when transactions are denominated
in a different currency from the Company's functional currency.

The carrying amounts of the Company’s foreign currency exposure at the end of the reporting

norinrl aro ac fnllmA/c

The above foreign currency forward contract, the Company has accrued loss on foreign currency
transaction and translation of (?'000) 71 (previous year gain on foreign currency transaction and
translation of (?'000) 29).

Credit Risk

Credit Risk refers to the risk that a counterparty will default on its contractual obligations resulting in
financial loss to the Company. The Company has adopted a policy of only dealing with creditworthy
counterparties and obtaining sufficient collateral, where appropriate, as a means of mitigating the
risk of financial loss from defaults. The Company's exposure is continuously monitored.

Trade Receivables

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.
The company has computed expected credit losses based on a provision matrix which uses historical
credit loss experience of the Company. Forward-looking information (including macroeconomic
information) has been incorporated into the determination of expected credit losses. Certain sales
are undertaken based on advance payments from customers, which is considered as collateral and
these are considered in determination of expected credit losses, where applicable.

The credit risk on liquid funds such as Fixed deposits with Banks, investment in IRFC Bonds and
derivative financial instruments is limited because the counterparties are banks and financial
institutions with high credit-ratings.

The company considers the probability of default upon initial recognition of asset and whether there
has been a significant increase in credit risk on ongoing basis. To assess whether there is a
significant increase in credit risk, the company compares the risk of default occuring on the asset as
at the reporting date with the risk of default as at the date of initial recognition.

Liquidity Risk

The Company has established an appropriate liquidity risk management framework for the
management of short-term, medium-term 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.

Maturity profile of financial liabilities

The following tables detail the Company’s remaining contractual maturity for its non-derivative
financial liabilities with agreed repayment periods. The tables have been drawn up based on the
undiscounted cash flows of financial liabilities based on the earliest date on which the Company can
be required to pay. The tables include both interest and principal cash flows.

The amounts included above for financial guarantee contracts are the maximum amounts the
Company could be forced to settle under the arrangement for the full guaranteed amount if that
amount is claimed by the counterparty to the guarantee. Based on expectations at the end of the
reporting period, the Company on siders that it is more likely than not that such an amount will not
be payable under the arrangement.

39. Sensitivity Analysis

Foreign Currency Sensitivity

The sensitivity analysis arises on account of outstanding foreign currency denominated assets and
liabilities, including derivative contracts. The Company considers a sensitivity of 10% in applicable
foreign currency rates, holding all other variables constant.

The following tables demonstrate the sensitivity to a reasonably possible change in USD, GBP and
EURO exchange rates, with all other variables held constant.

If the change in rates decline by a similar percentage, there will be opposite impact of similar amount
on Profit Before Tax and Pre-tax Equtiy Effect.

The sensitivity analysis is unrepresentative of the inherent foreign exchange risk because the
exposure at the end of the reporting period does not reflect the exposure during the
year.

Interest Rate sensitivity

The sensitivity analyses below have been determined based on exposure to interest rate for both
derivative and non-derivative instruments at the end of reporting period. For floating rate liabilities,
analysis is prepared assuming the amount of liability outstanding at the end of the reporting period
was outstanding for the whole year.

The following table demonstrates the sensitivity to a reasonably possible change in interest rates
on that portion of loans and borrowings affected, after the impact of hedge accounting. With all other
variables held constant, the Company’s profit before tax is affected through the impact on floating
rate borrowings, as follows:

Offsetting of balances

Certain financial assets and financial liabilities are subject to offsetting where there is currently a
legally enforceable right to set off recognized amounts and the Company intends to either settle on
a net basis, or to realise the asset and settle the liability, simultaneously. Certain derivative financial
assets and financial liabilities are subject to master netting arrangements, whereby in the case of
insolvency, derivative financial assets and financial liabilities will be settled on a net basis.

• Net profit ratio: Significant Change due to higher realization rate.

• Return on Capital employed: No material Change is observed.

41. Fair Value Measurement

Fair value hierarchy

Fair value of the financial instruments is classified in various fair value hierarchies based on the
following three levels:

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

Level 2: Inputs other than quoted price including within level 1 that are observable for the asset or
liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

The fair value of financial instruments that are not traded in an active market is determined using
valuation techniques which maximize the use of observable market data and rely as little as
possible on entity-specific estimates. If significant inputs required to fair value an instrument are
observable, the instrument is included in Level 2.

Derivatives are valued using valuation techniques with market observable inputs such as foreign
exchange spot rates and forward rates at the end of the reporting period, yield curves, risk free
rate of returns, volatility etc., as applicable.

Level 3: Inputs for the assets or liabilities that are not based on observable market data
(unobservable inputs)

If one or more of the significant inputs is not based on observable market data, the instrument is
included in level 3. This is the case with listed instruments where market is not liquid and for
unlisted instruments.

The fair value of trade receivables and payables is considered to be equal to the carrying amounts
of these items due to their short - term nature.

There has been no change in the valuation methodology for Level 3 inputs during the year. The
Company has not classified any material financial instruments under Level 3 of the fair value
hierarchy. There were no transfers between Level 1 and Level 2 during the year.

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

In terms of our report attached For and on behalf of the Board of Directors

For B. K. KHARE & CO. Adi F. Madan Ayesha K. DadyBurjor Kaizad R. DadyBurjor

Chartered Accountants (Managing Director) (Whole Time Director) (Director)

(FR No. 105102W) DIN : 00023629 DIN : 02949248 DIN : 00022387

Amit Mahadik Chintamani D. Thatte Dashrath B. Pawaskar Vaibhav P. Mandhana

Partner (Director) (Director) (Director)

Membership No. : 125657 DIN : 01071980 DIN : 10728150 DIN : 07007166

Pune, Date: May 15, 2025 Bhavik R. Maisuria Himanshu Zinzuwadia

(Chief Financial Officer) (Company Secretary)

Mumbai, Date: May 15, 2025