o) Provisions, contingent liabilities and contingent asset
Provisions

Provisions are recognised when the Company has a present obligation (legal
or constructive) as a result of a past event and 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.

Provisions are discounted, if the effect of the time value of money is material,
using pre-tax rates that reflects the risks specific to the liability. When discounting
is used, an increase in the provisions due to the passage of time is recognised
as finance cost. These provisions are reviewed at each balance sheet date and
adjusted to reflect the current best estimates. Necessary provision for doubtful
debts, claims, etc., are made, if realisation of money is doubtful in the judgement
of the management.

Contingent liabilities

A contingent liability is a possible obligation that arises from past events whose
existence will be confirmed by the occurrence or non-occurrence of one or more
uncertain future events beyond the control of the company or a present obligation
that is not recognized because it is not probable that an outflow of resources will
be required to settle the obligation. A contingent liability also arises in extremely
rare cases where there is a liability that cannot be recognized because it cannot be
measured reliably. Contingent liabilities are disclosed separately.

Show cause notices issued by various Government authorities are considered for
evaluation of contingent liabilities only when converted into demand.

Contingent assets

Where an inflow of economic benefits is probable, the Company discloses a brief
description of the nature of the contingent assets at the end of the reporting period,
and, where practicable, an estimate of their financial effect. Contingent assets are
disclosed but not recognised in the financial statements.

p) Cash and cash equivalents

Cash comprises cash on hand and demand deposits with banks. Cash equivalents
are short-term balances with original maturity of less than 3 months, highly liquid
investments that are readily convertible into cash, which are subject to insignificant
risk of changes in value.

q) Cash Flow Statement

Cash flows are presented using indirect method, whereby profit / (loss) before tax
is adjusted for the effects of transactions of non-cash nature and any deferrals or
accruals of past or future cash receipts or payments.

Cash flows are presented using indirect method, whereby profit / (loss) before tax
is adjusted for the effects of transactions of non-cash nature and any deferrals or
accruals of past or future cash receipts or payments.

Bank borrowings are generally considered to be financing activities. However,
where bank overdrafts which are repayable on demand form an integral part of an
entity's cash management, bank overdrafts are included as a component of cash
and cash equivalents for the purpose of Cash flow statement.

r) Earnings per share

The basic earnings per share are computed by dividing the net profit for the period
attributable to equity shareholders by the weighted average number of equity
shares outstanding during the period.

Diluted EPS is computed by dividing the net profit after tax by the weighted average
number of equity shares considered for deriving basic EPS and also weighted
average number of equity shares that could have been issued upon conversion
of all dilutive potential equity shares. Dilutive potential equity shares are deemed
converted as of the beginning of the period, unless issued at a later date. Dilutive
potential equity shares are determined independently for each period presented.
The number of equity shares and potentially dilutive equity shares are adjusted for
bonus shares, as appropriate.

3) Details of shares issued consideration other than cash during the last five years immedi¬
ately preceding the date of Balance Sheet

The Company has issued bonus shares of 6,03,41,400 by capitalisation of reserves during
May 2025. There are no buy back of shares during the last five years immediately preced¬
ing the date of Balance Sheet.

|

4) Rights, preferences and restrictions in respect of equity shares issued by the Company

|

(a) The company has issued only one class of equity shares having a par value of Re. 1 each.
The equity shares of the company having par value of Re.1/- rank pari-passu in all respects
including voting rights and entitlement to dividend.

|

(b) In the event of liquidation, shareholders will be entitled to receive the remaining assets of
—the company after distribution of all preferential amounts. The distribution will be propor¬
tionate to the number of equity shares held by the shareholder.

1-—-1- -r

Note : The Company has used the borrowings from banks and financial institutions for the
specific purpose for which it was taken as at the reporting date.

Registration, Modification and Satisfaction of charges relating to the year under review, had
been filed with the ROC, within the prescribed time or within the extended time requiring
the payment of additional fees

** Terms of loan and security details

Term loan - II availed from HDFC Bank by securing first charge on the specific assets pro-

1) cured under ATUF Scheme - repayable in 5 years on half yearly basis, commencing from
February 25, 2021. This loan has been fully repaid in the current year.

Term loan - III availed from HDFC Bank by securing first charge on the specific assets

2) procured under ATUF Scheme - repayable in 5 years on quarterly basis, commencing from
August 15, 2020. This loan has been fully repaid in the current year.

Working Capital Term Loan availed from State Bank of India (SBI) under the Export Cred-

3) it Guarantee Scheme (ECGS) by securing second charge on the entire current assets and
Machineries/ equipment purchased out of the Capex LC limits already availed with SBI. The
loan is repayable in 3 years on monthly basis, commencing from April 2027.

, . Proceedings under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and
⁽ ) rules made thereunder

There are no proceedings initiated or are pending against the company for holding any
benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988)

(f) Borrowings from banks

The Company has been sanctioned working capital limits in excess of five crore rupees,
in aggregate, from banks or financial institutions on the basis of security of current as¬
sets and the quarterly returns or statements filed by the company with such banks or
financial institutions are in agreement with the books of account of the Company.

The Company is not declared as wilful defaulter by any bank or financial Institution or

(g) Relationship with Struck off Companies

The Company did not have any transactions with Companies struck off under Section
248 of Companies Act, 2013 or Section 560 of Companies Act, 1956 considering the
information available with the Company.

(h) Compliance with number of layers of companies

The Company do not have any parent company and accordingly, compliance with the
number of layers prescribed under clause (87) of section 2 of the Act read with Compa¬
nies (Restriction on number of Layers) Rules, 2017 is not applicable for the year under
consideration.

During the current year, additional packing credit facilities have been availed from banks,

Ýt of higher purchases towards the end of

declined compared to the previous year.

rm loan of INR 1,060.00 lakhs has been
Ýe has been an increase in the debt equity

ne textiles unit have increased significant-
rdingly to meet the higher export demand

ncreased on account of higher purchases
ted in an increase in Trade payables turn-

resulted in the increase in the Net Capital

ed by the Competent Authority in terms of
13 during the year.

(k) to intermediaries and receipt of

The company has not advanced or loaned or invested funds (either borrowed funds or
share premium or any other sources or kind of funds) to any other person(s) or enti-
ty(ies), including foreign entities (Intermediaries) with the understanding (whether re¬
corded in writing or otherwise) that the Intermediary shall (i) directly or indirectly lend or
invest in other persons or entities identified in any manner whatsoever by or on behalf of
the company (Ultimate Beneficiaries) or (ii) provide any guarantee, security or the like to
or on behalf of the Ultimate Beneficiaries.

The company has also 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 (Ul¬
timate Beneficiaries) or (ii) provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries.

The Company do not have any transaction which are not recorded in the books of ac¬
counts that has been surrendered or disclosed as income in the tax assessments under

(m) Details of Crypto Currency or Virtual Currency

The Company did not trade or invest in Crypto Currency or virtual currency during the
financial year. Hence, disclosures relating to it are not applicable.

(n) 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 been operated
throughout the year for all transactions recorded in the software and the audit trail fea¬
ture has not been tampered with at any time during the year. The audit trail has been
preserved by the company as per the statutory requirements for record retention.

55 Financial Instruments
Capital management

The Company manages its capital to ensure that entities in the Company will be able
to continue as going concern, while maximising the return to stakeholders through
the optimisation of the debt and equity balance.

The Company determines the amount of capital required on the basis of annual
operating plans and long-term product and other strategic investment plans. The
funding requirements are met through equity, long term and short-term borrowings.

For the purposes of the Company's capital management, capital includes issued
capital and other equity reserves attributable to the equity holders.

Financial risk management objectives

The treasury function provides services to the business, co-ordinates access to do¬
mestic and international financial markets, monitors and manages the financial risks
relating to the operations through internal risk reports which analyse exposures by
degree and magnitude of risks. These risks include market risk (including currency
risk, interest rate risk and other price risk), credit risk and liquidity risk.

The Company seeks to minimise the effects of these risks by using natural hedg¬
ing financial instruments to hedge risk exposures. The use of financial derivatives is
governed by the Company's policies approved by the board of directors, which pro¬
vide written principles on foreign exchange risk, the use of financial derivatives, and
the investment of excess liquidity. The Company does not enter into or trade finan¬
cial instruments, including derivative financial instruments, for speculative purposes.

Market risk

Market risk is the risk of any loss in future earnings, in realizable fair values or in fu¬
ture cash flows that may result from a change in the price of a financial instrument.
The Company's activities expose it primarily to the financial risks of changes in for¬
eign currency exchange rates and interest rates. The Company actively manages its
currency and interest rate exposures through its finance division and uses derivative
instruments such as forward contracts and currency swaps, wherever required, to
mitigate the risks from such exposures. The use of derivative instruments is subject
to limits and regular monitoring by appropriate levels of management.

Foreign currency risk management

The Company undertakes transactions denominated in foreign currencies; conse¬
quently, exposures to exchange rate fluctuations arise. The Company actively man¬
ages its currency rate exposures through a centralised treasury division and uses
natural hedging principles to mitigate the risks from such exposures. The use of
derivative instruments, if any, is subject to limits and regular monitoring by appropri¬
ate levels of management.

The carrying amounts of the Company's foreign currency denominated monetary
assets and monetary liabilities at the end of the reporting period are as follows:

Foreign currency sensitivity analysis

Movement in the functional currencies of the various operations of the Company
against major foreign currencies may impact the Company's revenues from its oper¬
ations. Any weakening of the functional currency may impact the Company's cost of
imports and cost of borrowings and consequently may increase the cost of financing
the Company's capital expenditures. The foreign exchange rate sensitivity is calcu¬
lated for each currency by aggregation of the net foreign exchange rate exposure
of a currency and a simultaneous parallel foreign exchange rates shift in the foreign
exchange rates of each currency by 2%, which represents management's assess¬
ment of the reasonably possible change in foreign exchange rates. The sensitivity
analysis includes only outstanding foreign currency denominated monetary items
and adjusts their translation at the period end for a 2% change in foreign currency
rates. The estimated sensitivity impact will be around /- INR 51.02 lakhs (Previous
year Rs. 258.11 lakhs), which is considered to be immaterial to the size of operations
of the Company.

In management's opinion, 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 risk management

The Company is exposed to interest rate risk because it borrow funds at both fixed
and floating interest rates. The risk is managed by the Company by maintaining an
appropriate mix between fixed and floating rate borrowings and by the use of in¬
terest rate swap contracts. Hedging activities are evaluated regularly to align with
interest rate views and defined risk appetite, ensuring the most cost-effective hedg¬
ing strategies are applied. Further, in appropriate cases, the Company also effects
changes in the borrowing arrangements to convert floating interest rates to fixed
interest rates.

Interest rate sensitivity analysis

The sensitivity analyses below have been determined based on the exposure to
interest rates for both derivatives and non-derivative instruments at the end of the
reporting period. For floating rate liabilities, the analysis is prepared assuming the
amount of the liability outstanding at the end of the reporting period was outstand¬
ing for the whole year. A 25 basis point increase or decrease is used when reporting
interest rate risk internally to key management personnel and represents manage¬
ment's assessment of the reasonably possible change in interest rates.

The 25 basis point interest rate changes will impact the profitability by INR 0.45
Lakhs for the year (Previous year INR 0.45 Lakhs)

Credit risk management

Credit risk arises when a customer or counterparty does not meet its obligations un¬
der a customer contract or financial instrument, leading to a financial loss. The Com¬
pany is exposed to credit risk from its operating activities primarily trade receivables
and from its financing/ investing activities, including deposits with banks, mutual
fund investments, investments in debt securities and foreign exchange transactions.
The Company has no significant concentration of credit risk with any counterparty.

Exposure to credit risk

The carrying amount of financial assets represents the maximum credit exposure.
The maximum exposure is the total of the carrying amount of balances with banks,
short term deposits with banks, trade receivables, margin money and other financial
assets excluding equity investments.

(a) Trade Receivables

Trade receivables are consisting of a large number of customers. The Company has
credit evaluation policy for each customer and, based on the evaluation, credit limit
of each customer is defined. Wherever the Company assesses the credit risk as
high, the exposure is backed by either bank, guarantee/letter of credit or security
deposits.

The Company does not have higher concentration of credit risks to a single cus¬
tomer. As per simplified approach, the Company makes provision of expected credit
losses on trade receivables using a provision matrix to mitigate the risk of default
in payments and makes appropriate provision at each reporting date wherever out¬
standing is for longer period and involves higher risk.

The allowance for lifetime expected credit losses on trade receivables for the years
ended March 31, 2026 and 2025 and the reconciliation of allowance for expected
credit losses are as follows:

Liquidity risk management

Liquidity risk refers to the risk that the Company cannot meet its financial obliga¬
tions. The objective of liquidity risk management is to maintain sufficient liquidi¬
ty and ensure that funds are available for use as per requirements. The Company
invests its surplus funds in bank fixed deposit and mutual funds, which carry minimal
mark to market risks. The Company also constantly monitors funding options avail¬
able in the debt and capital markets with a view to maintaining financial flexibility.

Liquidity tables

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.

(b) Investments, Derivative Instruments, Cash and Cash Equivalents and Bank
deposits

Credit Risk on cash and cash equivalents, deposits with the banks/financial institu¬
tions is generally low as the said deposits have been made with the banks/financial
institutions, who have been assigned high credit rating by international and domes¬
tic rating agencies.

Credit Risk on Derivative Instruments is generally low as the Company enters into
the Derivative Contracts with the reputed Banks.

Investments of surplus funds are made only with approved Financial Institutions/
Counterparty. Investments primarily include investment in units of quoted Mutual
Funds. These Mutual Funds and Counterparties have low credit risk. The Company
has standard operating procedures and investment policy for deployment of surplus
liquidity, which allows investment in debt securities and mutual fund schemes of
debt and arbitrage categories and restricts the exposure in equity markets.

Offsetting related disclosures

Offsetting of cash and cash equivalents to borrowings as per the loan agreement is
available only to the bank in the event of a default. Company does not have the right
to offset in case of the counter party's bankruptcy, therefore, these disclosures are
not required.

57 Retirement benefit plans
Defined contribution plans

In accordance with Indian law, eligible employees of the Company are entitled to re¬
ceive benefits in respect of provident fund, a defined contribution plan, in which both
employees and the Company make monthly contributions at a specified percentage
of the covered employees' salary. The contributions, as specified under the law, are
made to the Provident fund as well as Employee State Insurance Fund.

The total expense recognised in profit or loss of INR 135.66 lakhs (for the year ended
March 31, 2025 is INR 82.14 lakhs) represents contribution payable to these plans by
the Company at rates specified in the rules of the plan.)

Defined benefit plans

(a) Gratuity

Gratuity is payable as per Payment of Gratuity Act, 1972. In terms of the same, gra¬
tuity is computed by multiplying last drawn salary (basic salary including dearness Al¬
lowance if any) by completed years of continuous service with part thereof in excess
of six months and again by 15/26. The Act provides for a vesting period of 5 years for
withdrawal and retirement and a monetary ceiling on gratuity payable to an employee
on separation, as may be prescribed under the Payment of Gratuity Act, 1972, from
time to time. However, in cases where an enterprise has more favourable terms in
this regard, the same has been adopted.

(b) Compensated absences

As per the policy of the Company, compensated absences are accumulating in na¬
ture which can be carried forward to the subsequent financial year upto a limit of 30
days. The expected cost of accumulating compensated absences is determined by
actuarial valuation performed by an independent actuary at each balance sheet date
using projected unit credit method on the additional amount expected to be paid /
availed as a result of the unused entitlement that has accumulated at the balance
sheet date. Expense recognised during the year is INR 21.74 Lakhs (previous year INR
12.03 Lakhs)

58 Exceptional Items

Exceptional items include (a) incremental provision for gratuity in accordance with
the new labour codes amounting to INR 47.76 Lakhs and (b) the abnormal effect of
changes in forex rates amounting to INR 254.56 Lakhs.

⁵⁹ Previous year figures have been regrouped/ reclassified to confirm to current year's
classification