Investments at FVOCI

Investments at FVOCI reflect investment in unquoted equity securities. These equity shares are designated as FVTOCI as they are not held for trading purpose. Thus, disclosing their fair value fluctuation in profit or loss will not reflect the purpose of holding. The Company has not transferred any gain or loss within equity in the previous year. Refer Note 43 for determination of their fair values.

On 20^th May 2025, the company sold its stake in June Industries Ltd (Formerly known as Kashyap Tele-Medicine Limited) . Hence, it ceases to be an associate of the Company from that date.

On 6 August 2025, the company disposed of 51% of its investment in Goodcore Spintex Limited (Formerly known as Goodcore Spintex Private Limited), reducing its shareholding from 100% to 49% and thereby losing control over the entity. Consequently, Goodcore Spintex Limited (Formerly known as Goodcore Spintex Private Limited) ceased to be a subsidiary and has been accounted for as an associate in accordance with Ind AS 28-Investments in Associates and Joint Ventures.

Consequent to bonus issue in Goodcore Spintex Limited (Formerly known as Goodcore Spintex Private Limited), the number of shares held increased proportionately with no change in aggregate cost of investment. Profit on sale of investment has been recognised in the Statement of Profit and Loss. The remaining investment in associate is carried at ' 1, being the residual carrying amount after the transaction and does not represent impairment or remeasurement.

*During the year ended March 31,2025, the Company issued bonus shares in the ratio of 4:1 (i.e., four new equity shares for every one existing equity share) by capitalizing reserves. The bonus issue was made out of the Retained Earnings and accordingly, 80,20,81,600 equity shares of ' 1 each, aggregating to ' 8,020.82 Lakh were issued as fully paid-up bonus shares.

(b) Terms/rights attached to equity shares:

The Company has only one class of equity shares having a face value of ' 1/- per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all liabilities. The distribution will be in proportion to the number of equity shares held by the shareholders.

(d) Shares reserved for issue under option

The Company has not reserved any shares for issuance under options

(e) Aggregate number of bonus shares issued, share issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date

During the year ended March 31,2025, the Company issued bonus shares in the ratio of 4:1 (i.e., four new equity shares for every one existing equity share) by capitalizing reserves. The bonus issue was made out of the Retained Earnings and accordingly, 80,20,81,600 equity shares of ' 1 each, aggregating to ' 80,20,81,600, were issued as fully paid-up bonus shares.Except for the bonus issue mentioned above, the Company has not issued any shares for consideration other than cash, nor has there been any buyback of shares during the current year or in the five years preceding March 31,2026.

41 SEGMENT INFORMATION

a Basis for segmentation

The Company's senior management examines the company's performance on the basis of single segment namely Textiles. Hence, the Company has only one operating segment under Ind AS 108-Operating Segments i.e. Textiles. Therefore, there is no separate disclosure made for disaggregared revenue based on business segment. b Geographical Information

The geographical information have been identified based on revenue within India (sales to customers within India) and revenue outside India (sales to customers located outside India). The following table presents geographical information regarding the Company's revenue:

c Major Customers

During the year ended March 31,2026 , two customer contributed more than 10% of the company's revenue which is ' 36,381.99 Lakhs and ' 36,363.64 Lakhs respectively.

During the year ended March 31, 2025 , three customer contributed more than 10% of the company's revenue which is ' 33,372.73 Lakhs, ' 28,782.03 Lakhs and ' 26,506.73 Lakhs respectively.

e) Terms and conditions of transactions with related parties

The sales to and purchases from related parties are made on terms equivalent to those that prevail in arm's length transactions. Outstanding balances at the year-end are unsecured and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables or payables. During the year the Company has not recorded any impairment of receivables relating to amounts owed by related parties (previous year: Nil). This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

f) Loans to related parties

Loans to related parties have been given to meet out their working capital requirement from time to time basis.

The fair value of the financial assets and liabilities is the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values:

- The fair values of investments which are measured at fair value, the carrying amounts are equal to the fair values.

- The fair values of other investments, other financial assets and borrowings have been estimated using DCF model which consider certain assumptions viz. forecast cash flows, discount rate, credit risk and volatility.

- The management assessed that the carrying amounts of current financial assets and current financial liabilities such as trade receivables, cash and bank balances, loans, other financial assets, short-term borrowings, trade payables and other financial liabilities are reasonable approximations of fair values largely due to the short-term maturities of these instruments.

45 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company's principle financial liabilities, comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company's operations. The Company's principal financial assets include loans, trade and other receivables, and cash and cash equivalents that derive directly from its operations. The Company also holds FVTPL and FVOCI investments.

The Company is exposed to market risk, credit risk and liquidity risk. The Company's risk management assessment and policies and processes are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and the Company's activities.

(a) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises interest rate risk and currency risk. Financial instruments affected by market risk include loans and borrowings, trade and other receivables and trade and other payables.

The sensitivity analyses in the following sections relate to the position as at March 31,2026 and March 31,2025.

The sensitivity analyses have been prepared on the basis that the amount of net debt, the ratio of fixed to floating interest rates of the debt and the proportion of financial instruments in foreign currencies are all constant.

The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at March 31,2026 and March 31,2025.

Interest Rate Risk

The Company's exposure to changes in interest rates relates primarily to the Company's outstanding floating rate debt. Most of the borrowing of the Company are at floating rate of interest.

The assumed movement in basis points for the interest rate sensitivity analysis is based on the currently observable market environment.

Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company's exposure to the risk of changes in foreign exchange rates relates primarily to the Company's operating activities (when revenue or expense is denominated in a foreign currency).

The most significant foreign currencies the Company is exposed to is the USD and EURO. The following tables sets forth information relating to unhedged foreign currency exposureas at March 31,2026 and March 31,2025.

Foreign Currency Sensitivity

The following tables demonstrate the sensitivity to a reasonably possible change in USD and EURO exchange rates, with all other variables held constant. The impact on the Company's profit before tax is due to changes in the fair value of unhedged foreign currency monetary assets and liabilities. The Company's exposure to foreign currency changes for all other currencies is not material.

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions.

The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and industries and operate in largely independent markets.

The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets. The Company does not hold collateral as security.

i) Trade Receivables

Customer credit risk is managed on the basis of the Company's established policy, procedures and control relating to customer credit risk management. Trade receivables are non-interest bearing and are generally on 30 days to 90 days credit term. Credit limits are established for all customers based on internal rating criteria. Outstanding customer receivables are regularly monitored.

For trade receivables, Expected Credit Loss (ECL) is provided as per simplified approach. The Company has applied the practical expedient as per Ind AS 109 'Financial Instruments' to measure the loss allowance at lifetime ECL. The Company determines the ECL on trade receivables by using a provision matrix, estimated based on historical credit loss experience based on the past due status of the debtors, adjusted as appropriate to reflect current conditions and estimates of future economic conditions.

ii) Other Financial Instruments and Cash Deposits

Credit risk from balances with banks and financial institutions is managed by the Company's finance department in accordance with the Company's policy. Investments in equity instruments and of surplus funds are made only with approved counterparties who meets the minimum threshold requirements under the counterparty risk assessment process. Based on its on-going assessment of counterparty risk, the Company adjusts its exposure to various counterparties.

Liquidity risk is defiined as the risk that the Company will not be able to settle or meet its obligation on time or at a reasonable price. Processes and policies related to such risks are overseen by senior management. The Company regularly monitors the rolling forecasts and actual cashflows, to ensure it has sufficient funds to meet the operational needs.

Notes

A. In pursuance to disclosure required under Section 186(4) of the Companies Act, 2013, the above corporate guarntee was given to banks in order to secure the borrowings as availed by Other Body Corporates.

B. The Company believes that the ultimate outcome of these proceedings will not have a material adverse effect on the Company's financial position and results of operations.

(ii) Capital commitments

The Company has entered into various contracts with suppliers and contractors for the acquisition of plant and machinery, equipment and various civil contracts of capital nature amounting (net of advances given) to ' 352.23 Lakhs (previous year: ' 657.63 Lakhs).

47 CAPITAL MANAGEMENT

The Company's capital management objective are to ensure Company's ability to continue as a going concern as well to create value for shareholders by facilitating the meeting of long term and short term goals of the Company. The Company determines the amount of capital required on the basis of annual business plan coupled with long term and short term strategic investment and expansion plans. The funding needs are met through cash generated from operations, long term and short term bank borrowings. The Company monitors the capital structure on the basis of net debt to equity ratio and maturity profile of the overall debt portfolio of the Company. Net debt includes interest bearing borrowings less cash and cash equivalents and other bank balances (including non-current earmarked balances). The table below summarises the capital, net debt and net debt to equity ratio of the company.

In order to achieve this overall objective, the Company's capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current period.

No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, 2026 and March 31,2025.

48 In accordance with the provisions of section 135 of the Companies Act 2013, the Board of Directors of the company had constituted a Corporate Social Responsibility (CSR) Committee. In terms with the provisions of the said Act, the company has spent a sum of ' 263.50 Lakhs (previous year: ' 273.00 Lakhs) towards CSR activities during the year ended March 31,2025.

49 LEASES

Company as Lessee

The Company takes gowdowns on lease with lease terms of less than 12 months. The Company applies the 'short-term lease' recognition exemption for these leases. The expense recognised in the profit or loss with respect to this lease is ' 220.07 Lakhs (previous year: ' 217.00 Lakhs).

(ii) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

(iii) The Company does not have any transactions with companies struck off.

(iv) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

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

(vi) 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:

(a) 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

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

(vii) 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:

(a) 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

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

(viii) The Company does not any 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 relevant provisions of the Income Tax Act, 1961.

(ix) The Company has Fund-based and Non-fund-based limits of Working Capital from Banks and Financial institutions. For the said facility, the submissions made by the Company to its lead bankers based on closure of books of accounts at the year end, the quarterly returns or statements comprising stock statements, book debt statements, credit monitoring arrangement reports, statements on ageing analysis of the debtors/other receivables, and other stipulated financial information filed by the Company with such banks or financial institutions are in agreement with the unaudited books of account of the Company of the respective quarters and no material discrepancies have been observed.

51 The previous year figures have been re-grouped wherever necessary in order to make the figures comparable to the current year.