9. Provisions, Contingent Liabilities and Contingent
Assets

A provision is recognized if, as a result of a past event, the
Company has a present legal or constructive obligation
that can be estimated reliably, and it is probable that an

outflow of economic benefits will be required to settle
the obligation. If the effect of the time value of money is
material, provisions are determined by discounting the
expected future cash flows at a pre-tax rate that reflects
current market assessments of the time value of money
and the risks specific to the liability. When discounting is
used, the increase in the provision due to the passage of
time is recognized as a finance cost.

The amount recognized as a provision is the best
estimate of the consideration required to settle the
present obligation at reporting date, taking into account
the risks and uncertainties surrounding the obligation.

When some or all of the economic benefits required to
settle a provision are expected to be recovered from a
third party, the receivable is recognized as an asset if it is
virtually certain that reimbursement will be received and
the amount of the receivable can be measured reliably.
The expense relating to a provision is presented in the
statement of profit and loss net of any reimbursement.

Contingent Liabilities are possible obligations that arise from
past events and whose existence will only be confirmed by
the occurrence or non-occurrence of one or more future
events not wholly within the control of the Company. Where
it is not probable that an outflow of economic benefits will
be required, or the amount cannot be estimated reliably,
the obligation is disclosed as a Contingent Liability,
unless the probability of outflow of economic benefits is
remote. Contingent Liabilities are disclosed on the basis of
judgment of the management/independent experts. These
are reviewed at each balance sheet date and are adjusted
to reflect the current management estimate.

Contingent Assets are possible assets that arise from
past events and whose existence will be confirmed only
by the occurrence or non-occurrence of one or more
uncertain future events not wholly within the control of
the Company. Contingent Assets are disclosed in the
financial statements when inflow of economic benefits is
probable on the basis ofjudgment of management. These
are assessed continually to ensure that developments
are appropriately reflected in the financial statements.

10. Foreign Currency Transactions and Translation

Transactions in foreign currencies are initially
recorded at the functional currency rates at the date
the transaction first qualifies for recognition.

Monetary Assets and Liabilities denominated in foreign
currencies are translated at the functional currency
spot rates of exchange at the reporting date. Exchange
differences arising on settlement or translation of
monetary items are recognized in Statement of Profit
and Loss in the year in which it arises.

Non-monetary items are measured in terms of
historical cost in a foreign currency are translated
using the exchange rate at the date of the transaction.

11. Revenue Recognition

The Company derives revenues primarily from business
of textiles. Effective April 1, 2018, the Company adopted
Ind AS 115 “Revenue from Contracts with Customers”
using cumulative catch-up transition method, applied to
contracts that were not completed as of April 1, 2018.
In accordance with the cumulative catch-up transition
method, the comparatives have not been retrospectively
adjusted. The following is a summary of new and/or
revised material accounting policies related to revenue
recognition. Refer Note1 “Material Accounting Policies,”
in the Company’s 2018 Annual Report for the policies in
effect for Revenue prior to April 1, 2018.

Revenue is recognized upon transfer of control of
promised products or services to customers in an
amount that reflects the consideration we expect to
receive in exchange for those products or services.

Ind AS 115 moves away from the “transfer of risk and
rewards” approach and introduces a new “transfer
of control” approach delivered through the new five-
step model described as follows:

1. Identify the contract with a customer.

2. Identify the separate performance obligations
in the contract.

3. Determine the transaction Price.

4. Allocate the transaction price to the separate
performance obligations.

5. Recognize revenue when (or as) each
performance obligation is satisfied.

At contract inception, an entity assesses the goods or
services promised in a contract with a customer and
identify each performance obligation promised to be
transferred to the customer either:

(a) a good or service (or a bundle of goods or
services) that is distinct; or

(b) a series of distinct goods or services that are
substantially the same and that have the same
pattern of transfer to the customer.

The company classifies the right to consideration in
exchange for deliverables as either a receivable or as
a contract asset. A receivable is a right to consideration
that is unconditional upon passage of time. Revenues
in excess of billings is recorded as contract asset and
is classified as a financial asset for these cases a right

to consideration is unconditional upon passage of time.
This would result in the timing of revenue recognition
being different from the time of billing the customers.

Company classifies amount received as advance
from customers against sales as contract liability.

Trade receivables and unbilled revenues are
presented net of impairment in the Balance Sheet.

11.1 Sale of Goods

Revenue from the sale of goods is recognized
upon transfer of control of the goods have
passed to the buyer, which generally coincides
with dispatch. Revenue from export sales are
recognized on shipment basis. Revenue from
the sale of goods is measured at an amount that
reflects the consideration we expect to receive in
exchange for those products (i.e. the transaction
price). The Company presents revenues net of
indirect taxes, returns and allowances, trade
discounts and volume rebates in its Statement of
Profit and Loss.

11.2 Rendering of services

Revenue from Job work services is recognized
based on the services rendered in accordance
with the terms of contracts.

11.3 Other Export Benefit

Export benefits are accounted for in the year of
export at net market realizable value.

11.4 Other income

Revenue from transactions or events that do not
arise from a contract with a customer not in the
scope of Ind AS 115 are continue to be recognized
in accordance with the other standards. Such
Income includes Interest and Dividend income
which are dealt with in Ind AS 109 and Rental
income to be accounted as per Ind AS 116.

11.5 interest income

For all financial instruments measured at
amortized cost and interest-bearing financial
assets classified as fair value through other
comprehensive income, interest income is
recorded using the effective interest rate (EIR).
The EIR is the rate that exactly discounts the
estimated future cash receipts over the expected
life of the financial instrument or a shorter period,
where appropriate, to the net carrying amount
of the financial asset. When calculating the
effective interest rate, the Company estimates
the expected cash flows by considering all the
contractual terms of the financial instrument (for

example, prepayment, extension, call and similar
options) but does not consider the expected
credit losses. Interest income is included in other
income in the statement of profit or loss.

11.6 Dividend

Dividend Income is recognized when the
company’s right to receive is established
which generally occurs when the shareholders
approve the dividend.

11.7 income other than interest and Dividend

Other income is recognized in the Statement of
Profit and Loss when increase in future economic
benefits related to an increase in an asset or a
decrease of a liability has arisen that can be
measured reliably.

12. Employee Benefits

12.1. Short Term Benefit

Short-term employee benefit obligations are
measured on an undiscounted basis and are booked
as an expense as the related service is provided.

A liability is recognized for the amount expected
to be paid under performance related pay if the
Company has a present legal or constructive
obligation to pay this amount as a result of
past service provided by the employee and the
obligation can be estimated reliably.

12.2. Post-Employment Benefits

Employee Benefit that are payable after the
completion of employment are Post-Employment
Benefit (other than termination benefit). These
are of two types:

12.2.1. Defined Contribution Plans

Defined contribution Plans are those plans
in which an entity pays fixed contribution
into separate entities and will have no
legal or constructive obligation to pay
further amounts. Provident Fund and Family
Pension Funds are Defined Contribution
Plans in which company pays a
fixed contribution and will have no
further obligation.

12.2.2. Defined Benefit Plans

A defined benefit plan is a post¬
employment benefit plan other than a
defined contribution plan.

Company pays Gratuity as per provisions of
the Gratuity Act, 1972. The Company’s net
obligation in respect of defined benefit plans

is calculated separately for each plan by
estimating the amount of future benefit that
employees have earned in return for their
service in the current and prior periods; that
benefit is discounted to determine its present
value. Any unrecognized past service
costs and the fair value of any plan assets
are deducted. The discount rate is based
on the prevailing market yields of Indian
government securities as at the reporting
date that have maturity dates approximating
the terms of the Company’s obligations and
that are denominated in the same currency
in which the benefits are expected to be paid.

The calculation is performed annually by
a qualified actuary using the projected unit
credit method. When the calculation results
in a liability to the company, the present
value of liability is recognized as provision
for employee benefit. Any actuarial gains or
losses in respect of gratuity are recognized
in OCI in the period in which they arise.

12.3 Other Long-Term Employee Benefits

Benefits under the Company’s Leave Encashment
Scheme constitute other long-term employee
benefits. The Company’s net obligation in
respect of leave encashment is the amount of
future benefit that employees have earned in
return for their service in the current and prior
periods; that benefit is discounted to determine
its present value, and the fair value of any
related assets is deducted. The discount rate is
based on the prevailing market yields of Indian
government securities as at the reporting date
that have maturity dates approximating the terms
of the Company’s obligations. The calculation is
performed using the projected unit credit method.
Any actuarial gains or losses are recognized in
profit or loss in the period in which they arise.

13. Income Taxes

Income Tax Expense comprises Current and Deferred
Tax. Current Tax Expense is recognized in Statement of
Profit and Loss A/c except to the extent that it relates to
items recognized directly in other comprehensive income
or equity, in which it is recognized in OCI or Equity.

Current Tax is the expected tax payable on the
taxable income for the year, using tax rates enacted or
substantively enacted and as applicable at the reporting
date, and any adjustment to tax payable in respect of
previous years. Current Income Taxes are recognized
under ‘Income Tax payable’ net of payments on account,
or under ‘Tax receivables’ where there is a debit balance.

Deferred Tax is recognized using the Balance Sheet method,
providing for temporary differences between the carrying
amounts of assets and liabilities for financial reporting
purposes and the amounts used for taxation purposes.
Deferred Tax is measured at the tax rates that are expected
to be applied to temporary differences when they reverse,
based on the laws that have been enacted or substantively
enacted by the reporting date. Deferred Tax Assets and
Liabilities are offset if there is a legally enforceable right to
offset current tax liabilities and assets, and they relate to
income taxes levied by the same tax authority on the same
taxable entity, or on different tax entities, but they intend to
settle Current Tax Liabilities and Assets on a net basis or their
tax assets and liabilities will be realised simultaneously.

Deferred Tax is recognized in Statement of Profit
and Loss except to the extent that it relates to items
recognized directly in OCI or Equity, in which case it is
recognized in OCI or Equity.

A Deferred Tax Asset is recognized to the extent that it
is probable that future taxable profits will be available
against which the temporary difference can be utilized.
Deferred tax assets are reviewed at each reporting date
and are reduced to the extent that it is no longer probable
that the related tax benefit will be realised.

14. 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.

a. Financial Assets

Initial recognition and measurement

All financial assets are recognized initially at
fair value plus or minus, in the case of financial
assets not recorded at fair value through profit
or loss, transaction costs that are attributable to
the acquisition or issue of the financial asset.

Impairment of Financial Assets

In accordance with Ind-AS 109, the Company
applies expected credit loss (ECL) model for
measurement and recognition of impairment loss
on the financial assets and credit risk exposure.

For recognition of impairment loss on financial
assets and risk exposure, the Company determines
that whether there has been a significant increase
in the credit risk since initial recognition. If credit
risk has not increased significantly, 12-month ECL
is used to provide for impairment loss. However, if
credit risk has increased significantly, lifetime ECL
is used. If, in a subsequent period, the credit quality
of the instrument improves then the entity reverts
to recognising impairment loss allowance based
on 12-month ECL.

In respect of Trade receivables or any financial
asset that result from transactions that are
within the scope of Ind AS 115, company
follows ‘simplified approach’ for recognition of
impairment loss allowance within the scope of
Ind AS 115, if they do not contain a significant
financing component. It recognizes impairment
loss allowance based on lifetime ECLs at each
reporting date, right from its initial recognition.

b. Financial Liabilities

initial recognition and measurement

All Financial Liabilities are recognized at fair
value and in case of loans, net of directly
attributable transaction cost. Fees of recurring
nature are directly recognized in the Statement
of Profit and Loss as finance cost.

Subsequent Measurement

Financial Liabilities are carried at amortized cost
using the effective interest method. Amortized cost
is calculated by taking into account any discount
or premium on acquisition and any material
transaction that are any integral part of the EIR. For
trade and other payables maturing within one year
from the balance sheet date, the carrying amounts
approximate the fair value of the instrument.

Derecognition

A Financial Liability is derecognized when the
obligation under the liability is discharged or
cancelled or expired. When an existing financial
liability is replaced by another from the same
lender on substantially different terms, or the
terms of an existing liability are substantially
modified, such an exchange or modification
is treated as the derecognition of the original
liability and the recognition of a new liability. The
difference in the respective carrying amounts is
recognized in the Statement of Profit and Loss.

c. Derivative Financial instruments

The Company uses forwards to mitigate the risk
of changes in interest rates, exchange rates
and commodity prices. Such derivative financial
instruments are initially recognized at fair value on
the date on which a derivative contract is entered
into and are also subsequently measured at fair
value on the reporting date. Derivatives are carried
as financial assets when the fair value is positive
and as financial liabilities when the fair value is
negative. Any gains or losses arising from changes
in the fair value of derivatives are taken to cash
flow hedge reserve through Statement of Other
Comprehensive Income.

These are accounted for as follows:

a) Cash flow hedge

When derivative is designated as a cash flow
hedging instrument, the effective portion of
changes in the fair value of the derivative is
recognized in the cash flow hedging reserve
being part of other comprehensive income.
Any ineffective portion of changes in the
fair value of the derivative is recognized
immediately in the Statement of Profit and
Loss. If the hedging instrument expires or is
sold, terminated or exercised, the cumulative
gain or loss previously recognized in the
cash flow hedging reserve is transferred to
the Statement of Profit and Loss upon the
occurrence of the underlying transaction. If the
forecasted transaction is no longer expected
to occur, then the amount accumulated in
cash flow hedging reserve is reclassified in
the Statement of Profit and Loss.

b) Fair Value Hedge

Changes in the fair value of hedging
instruments and hedged items that are
designated and qualify as fair value hedges
are recorded in the Statement of Profit and
Loss. If the hedging relationship no longer
meets the criteria for hedge accounting,
the adjustment to the carrying amount of a
hedged item for which the effective interest
method is used is amortized to Statement of
Profit and Loss over the period of maturity.

15. CSR Expenditure

The Company undertakes Corporate Social
Responsibility (CSR) activities as per Section 135
of the Companies Act, 2013 and the Companies
(CSR Policy) Rules, 2014. CSR expenditure includes
amounts incurred on activities that are approved as
ongoing projects by the Board in line with the CSR
policy and applicable law.

CSR expenditure is recognized in the Statement of
Profit and Loss in the period in which it is incurred.
For ongoing projects, any unspent amount at the
end of the financial year is transferred to a separate
“Unspent CSR Account” with a scheduled bank
within 30 days from the end of the financial year,
in accordance with Section 135(6) of the Act. Such
amounts are spent within the timelines prescribed
under Rule 4(6) of the CSR Rules.

The Company does not capitalize any CSR
expenditure unless it results in the creation of an
asset controlled by a qualifying entity as specified
under Rule 7(4) of the CSR Rules.

D. Other Accounting Policies

1. Leases:

1.1 Recognition:

The Company as a Lessee

The Company’s Lease Asset classes primarily
consist of Leases for Land and Buildings. The
Company assesses whether a contract contains
a lease, at inception of a contract. A contract is,
or contains, a lease if the contract conveys the
right to control the use of an identified asset for
a period of time in exchange for consideration.

To assess whether a contract conveys the right
to control the use of an identified asset, the
Company assesses whether:

(i) the contract involves the use of an
identified asset

(ii) the Company has substantially all of the
economic benefits from use of the asset
through the period of the lease and

(iii) the Company has the right to direct the
use of the asset.

At the date of commencement of the lease,
the Company recognizes a right-of-use asset
(“ROU”) and a corresponding lease liability for
all lease arrangements in which it is a lessee,
except for leases with a term of twelve months
or less (short-term leases) and low value leases.
For these short-term and low value leases, the
Company recognizes the lease payments as an
operating expense on a straight-line basis over
the term of the lease.

Certain lease arrangements include the options
to extend or terminate the lease before the
end of the lease term. ROU assets and lease
liabilities includes these options when it is
reasonably certain that they will be exercised.
The right-of-use assets are initially recognized
at cost, which comprises the initial amount of the
lease liability adjusted for any lease payments
made at or prior to the commencement date
of the lease plus any initial direct costs less
any lease incentives. They are subsequently
measured at cost less accumulated depreciation
and impairment losses.

Right-of-use assets are depreciated from the
commencement date on a straight-line basis
over the shorter of the lease term and useful life
of the underlying asset. Right of use assets are
evaluated for recoverability whenever events

or changes in circumstances indicate that their
carrying amounts may not be recoverable.

The lease liability is initially measured at
amortized cost at the present value of the
future lease payments. The lease payments
are discounted using the interest rate implicit in
the lease or, if not readily determinable, using
the incremental borrowing rates in the country
of domicile of these leases. Lease liabilities are
remeasured with a corresponding adjustment
to the related right of use asset if the Company
changes its assessment if whether it will exercise
an extension or a termination option.

Lease liability and ROU asset have been
separately presented in the Balance Sheet
and lease payments have been classified as
financing cash flows.

1.2 Accounting for

1.2.1 Operating 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 lease. Payments made under
operating leases are recognized as an expense
over the lease term.

1.2.2 Finance Lease

Leases of Property, Plant and Equipment where
the Company, as lessee has substantially all risks
and rewards of ownership are classified as finance
lease. On initial recognition, assets held under
finance leases are recorded as Property, Plant and
Equipment and the related liability is recognized
under borrowings. At inception of the lease, finance
leases are recorded at amounts equal to the fair
value of the leased asset or, if lower, the present
value of the minimum lease payments. Minimum
lease payments made under finance leases are
apportioned between the finance expense and the
reduction of the outstanding liability.

2. impairment of Non-Financial Assets

The carrying amounts of the Company’s non-financial
assets are reviewed at each reporting date to
determine whether there is any indication of impairment
considering the provisions of Ind AS 36 ‘Impairment of
Assets’. If any such indication exists, then the asset’s
recoverable amount (higher of its fair value less costs
to disposal or its value in use) is estimated.

An impairment loss is recognized if the carrying
amount of an asset or its Cash Generating Unit
(CGU) exceeds its estimated recoverable amount.
Impairment losses are recognized in profit or loss.

Impairment losses recognized in prior periods are
assessed at each reporting date for any indications
that the loss has decreased or no longer exists.
An impairment loss is reversed if there has been
a change in the estimates used to determine the
recoverable amount which is only to the extent that
the asset’s carrying amount does not exceed the
carrying amount that would have been determined,
net of depreciation or amortization, if no impairment
loss had been recognized.

3. Dividends

Dividends and Interim dividends payable to a
Company’s shareholders are recognized as changes
in equity in the period in which they are approved
by the shareholders’ meeting and the Board of
Directors respectively.

4. Material Prior Period Errors

Material prior period errors are corrected
retrospectively by restating the comparative amounts
for the prior periods presented in which the error
occurred. If the error occurred before the earliest prior
period presented, the opening balances of assets,
liabilities and equity for the earliest prior period
presented, are restated.

5. Earnings Per Share

Basic earnings per equity share is computed by
dividing the net profit or loss attributable to equity
shareholders of the Company by the weighted
average number of equity shares outstanding during
the financial year.

Diluted earnings per equity share is computed by
dividing the net profit or loss attributable to equity
shareholders of the Company by the weighted
average number of equity shares considered for
deriving basic earnings per equity share and also the
weighted average number of equity shares that could
have been issued upon conversion of all dilutive
potential equity shares.

E. Major Estimates made in preparing Financial
Statements:

1. Useful life of Property, Plant and Equipment and
intangible Assets

The estimated useful life of Property, Plant and
Equipment is based on a number of factors including
the effects of obsolescence, demand, competition
and other economic factors (such as the stability of
the industry and known technological advances) and
the level of maintenance expenditures required to
obtain the expected future cash flows from the asset.

Useful life of the assets other than Plant and machinery
(except Laboratory Equipments, Fire Fighting
Equipments and Tools &Equipments) are in accordance
with Schedule II of the Companies Act, 2013.

The Company reviews at the end of each reporting
date the useful life of property, plant and equipment,
and are adjusted prospectively, if appropriate.

Intangible assets are being amortized on straight line
basis over the period of five years.

2. Post-Employment Benefit Plans

Employee benefit obligations are measured on
the basis of actuarial assumptions which include
mortality and withdrawal rates as well as assumptions
concerning future developments in discount rates,
the rate of salary increases and the inflation rate.
The Company considers that the assumptions
used to measure its obligations are appropriate
and documented. However, any changes in these
assumptions may have a material impact on the
resulting calculations.

3. Provisions and Contingencies

The assessments undertaken in recognizing
provisions and contingencies have been made in
accordance with Ind AS 37, ‘Provisions, Contingent
Liabilities and Contingent Assets’. The evaluation
of the likelihood of the contingent events requires
best judgment by management regarding the
probability of exposure to potential loss. In case of
change in the circumstances following unforeseeable
developments, the likelihood could alter.

13.1 Security

Term Loans of H 81062.17 Lacs (Previous Year H 95603.13 Lacs) are secured by way of first charge on all immovable and movable
Property, Plant & Equipment (both present and future) situated at Hamirgarh unit & Begun unit and site situated at Badi ka
Kheda Tehsil Begun dist. Chittorgarh or anywhere else ranking pari-passu with all term lenders and second charge on entire
current assets i.e. Stock of Raw Material, Consumable Stores, Semi Finished & Finished Goods & Book Debts of Hamirgarh unit &
Begun unit and or anywhere else ranking pari-passu with all term lenders. The term loans are also secured by way of personal
guarantee of two executive directors namely Shri Dinesh Nolkha & Shri Nitin Nolakha.

13.2 Terms of Repayment

Term loans of H 19492.54 Lacs in 9 variable quarterly installments upto June 2027 and H 61569.63 Lacs in 26 variable quarterly
installments upto September 2031.

16.1 Security

Working capital loans of H 35409.01 Lacs (Previous Year H 38307.74 Lacs) are secured by way of first charge on entire current
assets i.e. Stock of Raw Material, Consumable Stores, Semi Finished & Finished Goods & Book Debts of Hamirgarh unit & Begun
unit or anywhere else ranking pari-passu with all lenders and second charge on all immovable and movable Property, Plant &
Equipment (both present and future) situated at Hamirgarh unit & Begun unit and site situated at Badi ka Kheda Tehsil Begun dist
Chittorgarh or anywhere else ranking pari-passu with all lenders. The working capital loans are also secured by way of personal
guarantee of two executive directors namely Shri Dinesh Nolkha & Shri Nitin Nolakha.

16.2 Terms of Repayment

Working Capital Loans are repayable on Demand.

2 Commitments

a) Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of Advances)
H 7122.66 Lacs (Previous Year - H 437.13 Lacs).

b) The company has an outstanding export obligation of approx. H 100195.76 lacs (Previous Year - H 99280.46 lacs), in respect
of capital goods imported at the concessional rate of duty under Export Promotion Capital Goods Scheme, which is required
to be met at different dates on or before 31st March, 2031 and export obligation of approx. H 50392.61 lacs (Previous Year -
H 11584.09), in respect of cotton imported at the concessional rate of duty under Advance Licence scheme, which is required
to be met at different dates on or before 23th March, 2026.

Note 35 - Disclosure as per ind AS 19 "Employee Benefits"

a) Defined Contribution Plan

The Company makes contributions towards Employees Provident Fund and Family Pension Fund for qualifying employees. The
Fund is operated by the Regional Provident Fund Commissioner. The amount of contribution is recognised as expense for defined
contribution plans.

Total contribution made by the employer to the Fund during the year is H 1212.65 lakhs (Previous Year H 1070.45 Lakhs).

b) Defined Benefit Plan & Other Long Term Benefits

(i) Gratuity

The Company makes payment to vested employees at retirement, disability or termination of employment as per provisions
of Payment of Gratuity Act, 1972. The provision of Gratuity liability as on the Balance Sheet date is done on actuarial
valuation basis for qualifying employees and the same is funded in the funds held under the Gratuity Plan by Trust.
Trust is incorporated on 28-09-2021 and 100% management of funds for gratuity is entrusted with HDFC Life Insurance
Company Limited.

The present value of the Defined Benefits obligation and the related current service cost is measured using the Projected
Unit Credit Actuarial Method at the end of Balance Sheet date by the Actuary.

(ii) Leave Encashment

The company provides benefit of leave encashment to its employees as per defined rules. The provision for liability for
leave encashment as on date of Balance Sheet is recognised on the basis of Actuarial certificate.

(iii) The following table set out the status of Gratuity and Leave encashment plans as required under Ind AS-19 :

(h) The estimates of future salary increase considered in actuarial valuation, take account of inflation, seniority,
promotions and other relevant factors such as supply and demand in the employment market.

(i) The discount rate is based on prevailing market yields of Indian Government Bonds, as at the balance sheet date,
consistent with the currency and estimated term of the post employment benefit obligations.

Note 36 - Disclosure as per ind AS 107 “Financial instrument disclosure”

i. Capital Management

For the purpose of the Company’s capital management, capital includes issued equity capital and all other equity reserves
attributable to the equity holders of the Company. The primary objective of the Company’s capital management is to ensure that
it maintains an efficient capital structure and healthy capital ratios in order to support its business and maximize shareholder value.

The Company manages its capital so as to safeguard its ability to continue as a going concern and to optimise returns to
shareholders. The capital structure of the Company is based on management’s judgement of its strategic and day-to-day needs
with a focus to maintain investor, creditors and market confidence. The management and the Board of Directors monitors the
return on capital as well as the level of dividends to shareholders. The Company may take appropriate steps in order to maintain,
or if necessary adjust, its capital structure, in light of changes in economic conditions and the requirement of financial Covenants.

The Company monitors capital using a gearing ratio, which is calculated by dividing Net Debt from the Equity. The Company
includes within Net Debt, interest bearing loans and borrowings less cash and short-term deposits (including other bank balance)
and under Equity, the Equity Share Capital plus other Equity (excluding Preference Share Capital) is considered.

ii. Financial Risk Management

The Company's Financial Risk Management is an integral part of how to plan and execute its business strategies. The Company's
financial risk management is set by the Managing Board. The Board of directors has established the risk management committee,
which is responsible for developing and monitoring the Company’s risk management policies. The Committee reports regularly
to the board of directors on its activities.

Company is exposed to following risk from the use of its financial instrument:

- Credit Risk

- Liquidity Risk

- Market Risk

Financial assets are written off when there is no reasonable expectation of recovery, such as a debtor failing to engage in a repayment
plan with the Company. The Company categorise a loan or receivable for write off when a debtor fails to make contractual payments
greater than 2 years past due. Where loans or receivables have been written off, the Company continues to engage in enforcement
activity to attempt to recover the receivable due. Where recoveries are made, these are recognised in profit or loss.

Provision for Expected Credit or Loss

(a) Financial assets for which loss allowance is measured using 12 month expected credit losses:

The Company has assets where the counter-parties have sufficient capacity to meet the obligations and where the
risk of default is very low. Accordingly, no loss allowance for impairment has been recognised.

(b) Financial assets for which loss allowance is measured using life time expected credit losses:

The Company provides loss allowance on trade receivables using life time expected credit loss and as per
simplified approach.

(b) Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial
liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to
ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and
stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation. The Company's
finance department is responsible for liquidity, funding as well as settlement management. In addition, processes and
policies related to such risks are overseen by senior management. Management monitors the Company's net liquidity
position through rolling forecasts on the basis of expected cash flows.

The table below summarizes the maturity profile of the Company’s financial liabilities based on contractual
undiscounted payments:

Considering the Company's existing foothold/experience in the Textile sector, established & diversified client base,
association with various international/domestic agents, it's competent sales team and an established marketing setup in
India and International Market, it does not foresee any problem in marketing its production.

Market Risk is the risk of loss of future earnings, fair values of future cash flows that may result from a change in the price
of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates,
foreign currency exchanges rates, equity prices and other market changes that effect market risk sensitive instruments.
Market risk is attributable to all market risk sensitive financial instruments including investments and deposits, and other
market changes.

The Company manages market risk through a finance department, which evaluates and exercises independent control
over the entire process of market risk management. The finance department recommends risk management objectives and
policies, which are approved by Senior Management and the Audit Committee. The activities of this department include
management of cash resources, implementing hedging strategies for foreign currency exposures, borrowing strategies,
and ensuring compliance with market risk limits and policies.

i) interest Rate Risk

It is the risk where changes in market interest rates might adversely affect the company's financial condition. The short
term/immediate impact of changes in interest rates are on the Company's net interest income/expenses. On a longer
term, change in interest rate impact the cash flows on the assets, liabilities and off-balance sheet items, giving rise to a
risk to the net worth of the Company arising out of all reprising mismatches and other interest rate sensitive positions.

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in market interest rate. In order to optimize the Company's position with regards to interest income and
interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk
management by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio.

At the reporting date the interest rate profile of the Company’s interest-bearing financial instruments is as follows:

ii) Foreign Exchange Risk

It is the risk that the company may suffer losses as a result of adverse exchange rates movements during a period
in which it has an open position in an individual foreign currency. In addition, the company may also expose to the
following risks on account of foreign exchange exposures as applicable.

Interest Rate Risk - Which arises from the maturity mismatches of foreign currency position

Settlement Risk - On account of risk of default of the counter parties.

Hedge Accounting Disclosures

The Cash Flow hedging reserve represents the cumulative effective portion of gains or losses arising on charges in fair
value of designated portion of hedging instruments entered into cash flow hedges. The cumulative gain or loss arising
on changes in fair value of the designated portion of the hedging instruments that are recognised and accumulated
under the heading of cash flow reserve will be reclassified to statement of profit and loss only when the hedged
transaction affects the profit or loss or included as a basic adjustment to the non financial hedged item.

The company has adopted Ind AS 115 "Revenue from Contracts with Customers” which is mandatory for reporting periods beginning
on or after 01st April 2018. The Company has adopted the cumulative catch-up transition method, applied to contracts that were not
completed as of April 1, 2018. In accordance with this method, the comparatives have not been retrospectively adjusted. Application
of Ind AS 115 does not have any material impact on the financial results of the company.

Disaggregate revenue information

The table below presents disaggregated revenues from contracts with customers for the year ended March 31, 2025 by contract-type.
The Company believes that this disaggregation best depicts how the nature, amount, timing and uncertainty of our revenues and cash
flows are affected by industry, market and other economic factors.

Trade receivables and Contract Balances

The Company classifies the right to consideration in exchange for deliverables either as a receivable or as unbilled revenue. A
receivable is a right to consideration that is unconditional upon passage of time. Revenues in excess of billings is recorded as unbilled
revenue and is classified as a financial asset for these cases as right to consideration is unconditional upon passage of time. This
would result in the timing of revenue recognition being different from the timing of billing the customers.

Company classifies amount received as advance from customers against sales as contract liability.

Trade receivable and unbilled revenues are presented net of impairment in the Balance Sheet.

During the year ended 31st March 2025, the company recognizes revenue of H 389.25 Lacs arising from opening contract liabilities
as of 1st April, 2024.

The remaining contract liability as on 31st March 2025 is H 240.65 Lacs (Previous Year H 389.25 Lacs) which is to be satisfied within
1 year or less.

Performance obligations and remaining performance obligations

The remaining performance obligation disclosure provides the aggregate amount of the transaction price yet to be recognised as at
the end of the reporting period and an explanation as to when the Company expects to recognise these amounts in revenue. Applying

Note 37 - Disclosure as per ind AS 115 "Revenue from Contract with Customers" (Contd..)

the practical expedient as given in para 121 of Ind AS 115, the Company has not disclosed the remaining performance obligation related
disclosures for contracts as the performance obligation is part of a contract that has an original expected duration of less than 1 year.

The impact on account of applying the erstwhile IndAS 18 Revenue instead of IndAS 115 Revenue from contract with customers on the
financials results of the Company for the year ended as at March 31, 2025 is insignificant.

Note 38 - Disclosure as per ind AS 108 "Operating Segments"

The Company is engaged in Business of Textiles. Hence there is no separate business segments.

A. Trade Payables include Principal amount H 953.16 Lacs (Previous Year H 473.36 Lacs) and Creditors for Capital Goods include
principal amount H 1.02 (Previous Year H Nil) and Interest amount H Nil (Previous Year H Nil) due to Micro & Small Enterprises as
at 31st March 2025. The figures have been disclosed on the basis of informations received from suppliers who have registered
themselves under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act, 2006) and/or based on the
information available with the company. Further, no interest during the year has been paid or payable under the provisions of
the MSMED Act, 2006.

B. No Interest has been paid under section 16 of the Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006),
along with the amount of the payment made to the supplier beyond the appointed day during each accounting year.

C. No Interest due and payable for the period of delay in making payment (which has been paid but beyond the appointed day
during the year) but without adding the interest specified under the Micro, Small and Medium Enterprises Development Act, 2006.

D. No Interest accrued and remaining unpaid at the end of each accounting year.

E. No further interest remaining due and payable even in the succeeding years, until such date when the interest dues above are
actually paid to the small enterprises, for the purpose of disallowance of a deductable expenditure under section 23 of the Micro,
Small and Medium Enterprises Development Act, 2006.

Note 44 : Additional Regulatory Requirements as Required under Shedule III of The Companies Act 2013

(a) The Company does not have any transactions with the companies which have been strucked off.

(b) The Company has borrowed funds from banks on the basis of security of current assets. The company has filed quarterly
statements with the banks or financial institution that are in principle in agreement with the books of accounts.

(c) The company does not hold any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules
made there under and no proceeding has been initiated or pending against the company.

(d) The company has no such transaction which is not recorded in the books of accounts that has been surrendered or disclosed
as income during the year in the tax assessments under the Income Tax Act, 1961 such as search or survey or any other relevent
provisions of The Income Tax Act, 1961.

(e) The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.

(f) The company has not declared as a wilful defaulter by any bank or any financial institution or any other lender at any time
during the financial year.

Note 44 : Additional Regulatory Requirements as Required under Shedule III of The Companies Act 2013
(Contd..)

(g) The company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities
(Intermediaries) with the understanding that the Intermediary shall:

(i) Directly or indirectly lend or invest in other persons or entities identified in any manner what so ever by or on behalf of the
company (ultimate beneficiaries) or

(ii) Provide any Gurantee, Security or the like to or on behalf of the ultimate beneficiaries.”

(h) The company has not received any fund from any person(s) or entity(ies) including foreign entities (funding party) with the
understanding whether recorded in writing or otherwise that the company shall:

(i) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
funding party (ultimate beneficiaries) or

(ii) Provide any Gurantee, Security or the like on behalf of the ultimate beneficiaries.

(i) The Company has filed all type of applicable charges or satisfaction with Registrar of Companies (ROC) in time, So there are no
charges or satisfaction of charges which are yet to be registered with Registrar of Companies beyond the statutory period.

(j) The company is neither a holding company of any subsidiaries companies not a subsidiary company of any holding company,
hence The company is not covered under clause (87) of section 2 of the Companies Act along with the Companies (Restriction
on number of Layers) Rules, 2017.

(k) The Company has not entered in any Scheme of Arrangements which has been approved by the Competent Authority in terms
of sections 230 to 237 of the Companies Act, 2013 during the year.

(l) The title deeds of all immovable properties are in the name of Company.

In terms of our report of even date For and on behalf of the Board

For KALANI & CO LLP DINESH NOLKHA NITIN NOLAKHA

Chartered Accountants Chairman & Managing Director Managing Director

(Firm Reg. no. 000722C/C400390) (DIN - 00054658) (DIN - 00054707 )

S. p. jhanwar p. maheshwari sudhir garg

Partner Chief Financial Officer Company Secretary &

M. No. 074414 (PAN - ABAPM8005C) Vice President (Legal)

(PAN - ABBPK6037F)

Place : Hamirgarh, Bhilwara
Date : 13.05.2025