2.12 Provisions, contingent liabilities and contingent assets

Provisions :- Provisions are recognized when there is 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 there is a reliable estimate of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present
obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the
obligation. These estimates are reviewed at each reporting date and adjusted to reflect the current best
estimates. If the effect of the time value of money is material, provisions are discounted. The discount rate
used to determine the present value is a pre-tax rate that reflects current market assessments of the time
value of money and the risks specific to the liability. The increase in the provision due to the passage of time is
recognised as interest expense.

Contingent liabilities :- Contingent liabilities are disclosed when there is a possible obligation arising from
past events, the existence of which 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 or a present obligation that arises
from past events where it is either not probable that an outflow of resources will be required to settle or a
reliable estimate of the amount cannot be made.

Contingent Asset :- A contingent asset is a possible asset arising from past events, the existence of which
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 not recognised till the realisation of the income is
virtually certain. However, the same are disclosed in the financial statements where an inflow of economic
benefit is possible.

2.13 Cash and cash equivalents & bank balances

Cash and cash equivalent in the balance sheet comprise cash at banks, cash on hand and fixed deposits with
an original maturity of less than three months, which are subject to an insignificant risk of changes in value.

Bank Balances other than cash and cash equivalents in the balance sheet comprise of unpaid dividend
accounts and fixed deposits with an original maturity of more than three months and less than twelve months,
which are subject to an insignificant risk of changes in value.

For the purposes of the cash flow statement, cash and cash equivalents include balance with banks, cash on
hand, cheques/ draft on hand and short-term deposits net of bank overdraft.

2.14 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

(i) Initial recognition and measurement

At initial recognition, the Company measures a financial assets at its fair value and in the case of
financial assets not recorded at fair value through profit or loss at transaction costs that are
attributable to the acquisition of the financial asset. Transaction cost of financial assets carried at fair
value through profit or loss is expensed in the Statement of Profit or Loss.

(ii) Classification and subsequent measurement

For purposes of subsequent measurement, financial assets are classified in following categories:

a) at amortized cost; or

b) at fair value through other comprehensive income; or

c) at fair value through profit or loss.

The classification depends on the entity's business model for managing the financial assets and the
contractual terms of the cash flows.

Debt Instruments: Subsequent measurement of debt instruments depends on the Company's
business model for managing the asset and the cash flow characteristics of the asset. There are
three measurement categories into which the Company classifies its debt instruments.

Amortized cost: Assets that are held for collection of contractual cash flows where those cash flows
represent solely payments of principal and interest are measured at amortized cost. Interest income
from these financial assets is included in finance income using the effective interest rate method
(EIR).

Fair value through other comprehensive income (FVOCI): Assets that are held for collection of
contractual cash flows and for selling the financial assets, where the assets' cash flows represent
solely payments of principal and interest, are measured at fair value through other comprehensive
income (FVOCI). Movements in the carrying amount are taken through OCI, except for the
recognition of impairment gains or losses, interest revenue and foreign exchange gains and losses
which are recognized in Statement of Profit and Loss. When the financial asset is derecognized, the
cumulative gain or loss previously recognized in OCI is reclassified from equity to Statement of Profit
and Loss and recognized in other gains/ (losses). Interest income from these financial assets is
included in other income using the effective interest rate method.

Fair value through profit or loss: Assets that do not meet the criteria for amortized cost or FVOCI are
measured at fair value through profit or loss. Interest income from these financial assets is included in
other income.

Equity investments: All equity investments in scope of Ind AS 109 are measured at fair value. Equity
instruments which are held for trading and contingent consideration recognised by an acquirer in a
business combination to which Ind AS103 applies are classified as at FVTPL. For all other equity
instruments, the Company may make an irrevocable election to present in other comprehensive
income subsequent changes in the fair value. The Company makes such election on an instrument-
by-instrument basis. The classification is made on initial recognition and is irrevocable.

If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on
the instrument, excluding dividends, are recognized in the OCI. There is no recycling of the amounts
from OCI to P&L, even on sale of investment. However, the Company may transfer the cumulative
gain or loss within equity.

Equity instruments included within the FVTPL category are measured at fair value with all changes
recognized in the profit and loss.

(iii) Impairment of financial assets

In accordance with Ind AS 109, Financial Instruments, the Company applies expected credit loss
(ECL) model for measurement and recognition of impairment loss on financial assets that are
measured at amortized cost and FVTOCI.

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 subsequent years, credit quality of the
instrument improves such that there is no longer a significant increase in credit risk since initial
recognition, then the entity reverts to recognizing impairment loss allowance based on 12 month
ECL.

Life time ECLs are the expected credit losses resulting from all possible default events over the
expected life of a financial instrument. The 12 month ECL is a portion of the lifetime ECL which results
from default events that are possible within 12 months after the year end.

ECL is the difference between all contractual cash flows that are due to the Company in accordance
with the contract and all the cash flows that the entity expects to receive (i.e. all shortfalls), discounted
at the original EIR. When estimating the cash flows, an entity is required to consider all contractual
terms of the financial instrument (including prepayment, extension etc.) over the expected life of the
financial instrument. However, in rare cases when the expected life of the financial instrument cannot
be estimated reliably, then the entity is required to use the remaining contractual term of the financial
instrument.

In general, it is presumed that credit risk has significantly increased since initial recognition if the
payment is more than 30 days past due.

ECL impairment loss allowance (or reversal) recognized during the year is recognized as
income/expense in the statement of profit and loss. In balance sheet ECL for financial assets
measured at amortized cost is presented as an allowance, i.e. as an integral part of the measurement
of those assets in the balance sheet. The allowance reduces the net carrying amount. Until the asset
meets write off criteria, the Company does not reduce impairment allowance from the gross carrying
amount.

(iv) Derecognition of financial assets

A financial asset is derecognized only when

a) the rights to receive cash flows from the financial asset is transferred or

b) retains the contractual rights to receive the cash flows of the financial asset, but assumes a
contractual obligation to pay the cash flows to one or more recipients.

Where the financial asset is transferred then in that case financial asset is derecognized only if
substantially all risks and rewards of ownership of the financial asset is transferred. Where the entity
has not transferred substantially all risks and rewards of ownership of the financial asset, the financial
asset is not derecognized.

(B) Financial liabilities

(i) Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or
loss and at amortized cost, as appropriate.

All financial liabilities are recognized initially at fair value and, in the case of borrowings and payables,
net of directly attributable transaction costs.

(ii) Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and
financial liabilities designated upon initial recognition as at fair value through profit or loss. Separated
embedded derivatives are also classified as held for trading unless they are designated as effective
hedging instruments. Gains or losses on liabilities held for trading are recognized in the Statement of
Profit and Loss.

Borrowings at amortised cost

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized
cost using the EIR method. Gains and losses are recognized in Statement of Profit and Loss when the
liabilities are derecognized as well as through the EIR amortization process. Amortized cost is
calculated by taking into account any discount or premium on acquisition and fees or costs that are an
integral part of the EIR. The EIR amortization is included as finance costs in the Statement of Profit and
Loss.

(iii) Derecognition

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or
expires. 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 as
finance costs.

(C) Offsetting financial instruments

Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a
legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or
realize the asset and settle the liability simultaneously. The legally enforceable right must not be contingent
on future events and must be enforceable in the normal course of business and in the event of default,
insolvency or bankruptcy of the Company or the counterparty.

2.15 Employee benefits

Short-term obligations

Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly

within 12 months after the end of the year in which the employees render the related service are recognized in
respect of employees' services up to the end of the year and are measured at the amounts expected to be
paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the
balance sheet.

Defined Contribution Plan

Provident Fund: Contribution towards provident fund is made to the regulatory authorities, where the
Company has no further obligations. Such benefits are classified as Defined Contribution Schemes as the
Company does not carry any further obligations, apart from the contributions made on a monthly basis which
are charged to the Statement of Profit and Loss.

Employee's State Insurance Scheme: Contribution towards employees' state insurance scheme is made to
the regulatory authorities, where the Company has no further obligations. Such benefits are classified as
Defined Contribution Schemes as the Company does not carry any further obligations, apart from the
contributions made on a monthly basis which are charged to the Statement of Profit and Loss.

Defined benefit plans

Gratuity: The Company provides for gratuity, a defined benefit plan (the 'Gratuity Plan") covering eligible
employees in accordance with the Payment of Gratuity Act, 1972. The Gratuity Plan provides a lump sum
payment to vested employees at retirement, death, incapacitation or termination of employment, of an
amount based on the respective employee's salary. The Company's liability is actuarially determined (using
the Projected Unit Credit method) at the end of each year. Actuarial losses/gains are recognized in the other
comprehensive income in the year in which they arise.

The present value of the defined benefit obligation denominated in INR is determined by discounting the
estimated future cash outflows by reference to market yields at the end of the reporting period on government
bonds that have terms approximating to the terms of the related obligation. The estimated future payments
which are denominated in a currency other than INR, are discounted using market yields determined by
reference to high-quality corporate bonds that are denominated in the currency in which the benefits will be
paid, and that have terms approximating to the terms of the related obligation.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit
obligation and the fair value of plan assets. This cost is included in employee benefit expense in the statement
of profit and loss.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial
assumptions are recognized in the period in which they occur, directly in other comprehensive income. They
are included in retained earnings in the statement of changes in equity and in the balance sheet.

Changes in the present value of the defined benefit obligation resulting from plan amendments or
curtailments are recognized immediately in profit or loss as past service cost.

2.16 Current Asset and Current Liability

Current Asset - “An entity shall classify an asset as current when:

(a) it expects to realise the asset, or intends to sell or consume it, in its normal operating cycle;

(b) it holds the asset primarily for the purpose of trading;

(c) it expects to realise the asset within twelve months after the reporting period;

(d) the asset is cash or a cash equivalent unless the asset is restricted from being exchanged or used to
settle a liability for at least twelve months after the reporting period. An entity shall classify all other
assets as non-current.

Current Liability - “An entity shall classify a liability as current when:

(a) it expects to settle the liability in its normal operating cycle;

(b) it holds the liability primarily for the purpose of trading;

(c) trie naDiiity is due to be settled witnin twelve months after trie reporting period; or

(d) it does not have an unconditional right to defer settlement of the liability for at least twelve months
after the reporting period. Terms of a liability that could, at the option of the counterparty, result in its
settlement by the issue of equity instruments do not affect its classification. An entity shall classify all
other liabilities as non-current.”

2.17 Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity
shareholders by the weighted average number of equity shares outstanding during the year. Earnings
considered in ascertaining the Company's earnings per share is the net profit or loss for the year after
deducting preference dividends and any attributable tax thereto for the year. The weighted average number
of equity shares outstanding during the year and for all the years presented is adjusted for events, such as
bonus shares, other than the conversion of potential equity shares, that have changed the number of equity
shares outstanding, without a corresponding change in resources, excluding treasury shares.

For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to
equity shareholders and the weighted average number of shares outstanding during the year is adjusted for
the effects of all dilutive potential equity shares.

2.18 Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision maker (CODM)(Managing Director) of the Company. The Managing Director is
responsible for allocating resources and assessing performance of the operating segments of the company.

During the period, entity was engaged in the business of home textile products, which is the only operating
segment as per Ind AS 108.

2.19 Rounding off amounts

All amounts disclosed in standalone financial statements and notes have been rounded off to the nearest
crores as per requirement of Schedule III of the Act, unless otherwise stated.

2.20 New Standards and amendments issued but not effective

Ministry of Corporate Affairs (“MCA”) notifies new standard or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as issued from time to time. During the year, MCA vide
notification dated September 9, 2024 and September 20, 2024 notified the Companies (Indian Accounting
Standard) Second Amendment Rules, 2024 and Companies (Indian Accounting Standards) Third
amendment Rule, 2024 respectively which amended / notified certain accounting standards and are effective
for annual reporting periods beginning on or after April 01, 2024: - Insurance Contract - Ind AS 117 and -
Lease Liability in Sale and Leaseback - Amendment to Ind AS 116. These amendments did not have any
impact on the amount recognised in prior periods and are not expected to significantly affect the current or
future periods

Revaluation Note:

Freehold and leasehold land classified as property, plant and equipment were valued on 31 March 2024 using sale
comparison technique carried out by external independent qualified valuers who are registered valuers as defined
under Rule 2 of the Companies (Registered Valuers and Valuation) Rules, 2017

The fair value of freehold land and leasehold land is a level 3 recurring fair value measurement. A reconciliation of the
opening and closing fair value balance is provided above

The valuation techniques and significant unobservable inputs used in determining the fair value measurement of
freehold land and leasehold land, as well as the inter relationship between key unobservable inputs and fair value, are
set out below.

Significant unobservable inputs

Freehold and leasehold land - Price per square metre (range) - March 31,2025'4,000 to ' 11,000 (March 31,2024
' 4,000 to ' 11,000)

Significant increases/(decreases) in estimated price per square metre in isolation would result in a significantly
higher/(lower) fair value on a linear basis.

There were no valuation carried out during the period. The fair value measurement is based on the above items'
highest and best use, which does not differ from their actual use. Had the revalued items been measured on a
historical cost basis, the net book value of freehold and leasehold land would have been ' 6.21 (31 March 2024:
' 6.22). The revaluation surplus (gross of tax) amounted to ' 51.71 (31 March 2024: ' 56.09) for freehold and
leasehold land. Further, adjustment of ' 4.26 relates to sale of land in the current year.

Terms and conditions of loans

(i) Packing Credit in Rupee Scheme (PCRS) is secured by way of hypothecation of Inventories meant for
exports and book debts as prime security and collaterally secured by extension of the charge on the
Property, plant and equipment (excluding Immovable property of Panipat Plant) of the Company.

The Company has interest rate subvention of 2% till Jun 2024 (previous year 2%), Interest rates for PCRS
Scheme(post subvention) ranges from 6.56% to 8.15% (March 31,2024 5.00% to 6.75%)

The above mentioned PCRS is secured by way of lien over Fixed Deposits amounting to ' NIL (March 31,
2024'47.31) to be excercised at the time of release of funds.

(ii) The Company has obtained PCFC Loans from Standard Chartered Bank carry interest rate of 6.56% which
are secured by way of hypothecation of Inventories meant for exports and book debts as prime security and
collaterally secured by extension of the charge on the Property, plant and equipment (excluding Immovable
property of Panipat Plant) of the Company.

(B) Defined benefit plans

The Company provides for gratuity for employees as per the Payment of Gratuity Act, 1972. The amount of gratuity
shall be payable to an employee on the termination of employment after rendering continuous service for not less
than five years, or on their superannuation or resignation. However, in case of death of an employee, the minimum
period of five years shall not be required. The amount of gratuity payable on retirement / termination is the
employee's last drawn basic salary per month computed proportionately for 15 days salary multiplied by the
number of years of service completed. The gratuity plan is a funded plan administered by a Life Insurance
Corporation of India that is legally separated from the entity,. The Company does not fully fund the liability and
maintains the funding from time to time based on estimations of expected gratuity payments.

These plans typically expose the Company to the following actuarial risks:

Investment risk - The present value of the defined benefit plan liability is calculated using a discount rate which is
determined by reference to market yields at the end of the reporting period on government bonds. If the return on
plan asset is below this rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively balanced
mix of investments in government securities, and other debt instruments.

Interest risk - A fall in the discount rate, which is linked, to the G-Sec rate will increase the present value of the
liability requiring higher provision. A fall in the discount rate generally increases the mark to market value of the
assets depending on the duration of asset.

Salary risk - The present value of the defined benefit plan liability is calculated by reference to the future salaries of
members. As such, an increase in the salary of the members more than assumed level will increase the plan's
liability.

Asset Liability matching risk - The plan faces the ALM risk as to the matching cash flow. Since the plan is invested
in lines of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk.

Mortality risk - Since the benefits under the plan is not payable for life time and payable till retirement age only, plan
does not have any longevity risk.

Concentration risk - Plan is having a concentration risk as all the assets are invested with the insurance company
and a default will wipe out all the assets. Although probability of this is very low as insurance companies have to
follow stringent regulatory guidelines which mitigate risk.

The most recent actuarial valuation of the plan assets and the present value of the defined benefit obligation were
carried out at 31 March 2025 by M/S K. A. Pandit Consultants & Actuaries. The present value of the defined benefit
obligation, and the related current service cost and past service cost, were measured using the projected unit
credit method.

Fair value hierarchy

The following is the hierarchy for determining and disclosing the fair value of financial instruments by valuation
technique:

• Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

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

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

38 Financial risk management objectives and policies

The Company is exposed to various financial risks. These risks are categorized into market risk, credit risk and
liquidity risk. The Company's risk management is coordinated by the Board of Directors and focuses on securing
long term and short term cash flows. The Company does not engage in trading of financial assets for speculative
purposes.

(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. The Company is exposed to market risk primarily related to interest rate risk and
Foreign currency risk. Financial instruments affected by market risk include borrowings and derivative financial
instruments.

(i) Interest rate risk

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 rates. The Company exposure to the risk of changes in market
interest rates relates primarily to the Company's short-term debt obligations with floating interest rates.

The Company manages its interest rate risk by having a balanced portfolio of variable rate loans and
borrowings.

(ii) 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 operating activities.

The Company is exposed to foreign currency risk arising mainly on export of finished goods and import of
raw material. Foreign currency exposures are managed within approved policy parameters utilising forward
contracts.

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

(B) Credit risk

Credit risk is the risk that counterparty will not meet its obligations leading to a financial loss. The Company is
exposed to credit risk arising from its operating (primarily trade receivables) and investing activities including
deposits placed with banks, financial institutions and other corporate deposits. The Company establishes an
allowance for impairment that represents its estimate of expected losses in respect of financial assets. Financial
assets are classified into performing, under-performing and non-performing. All financial assets are initially
considered performing and evaluated periodically for expected credit loss. A default on a financial asset is when
there is a significant increase in the credit risk which is evaluated based on the business environment. The
assets are written off when the Company is certain about the non-recovery.

Trade Receivables: The Company has an established credit policy and a credit review mechanism. The
Company also covers certain category of its debtors through a credit insurance policy. In such case the
insurance provider sets an individual credit limit and also monitors the credit risk. Management believes that the
unimpaired amounts that are past due by more than 90 days are still collectible in full, based on historical
payment behavior and analysis of customer credit risk.

Before accepting new customer, the Company has appropriate level of control procedures to assess the
potential customer's credit quality. The credit-worthiness of its customers are reviewed based on their financial
position, past experience and other relevant factors. The credit period provided by the Company to its
customers generally ranges from 0-60 days. Outstanding customer receivables are reviewed periodically.
Provision is made based on expected credit loss method or specific identification method. The credit risk related
to the trade receivables is mitigated by taking security deposits / bank guarantee / letter of credit - as and where
considered necessary, setting appropriate credit terms and by setting and monitoring internal limits on exposure
to individual customers.

Financial instruments and cash deposits: The credit risk from balances / deposits with banks, other financial
assets and current investments are managed in accordance with the Company's approved policy. Investments
of surplus funds are made only with approved counterparties and within the limits assigned to each
counterparties. The limits are assigned to mitigate the concentration risks. These limits are actively monitored
by the Company.

(C) Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due.
The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available
for use as and when required. The Company manages the liquidity risk by maintaining adequate cash 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. The Company invests its surplus funds in
bank fixed deposit and liquid schemes of mutual funds, which carry no/negligible mark to market risks.

39 Reconciliation of quarterly returns or statements of current assets filed with banks or financial
institutions

The Company has obtained borrowings from bank on basis of security of current assets wherein the quarterly
returns/ statements of current assets as filed with bank are in agreement with the books.

40 Relationship with Struck off Companies under section 248 of the Companies Act, 2013 or section 560 of
Companies Act, 1956,

The company does not have any transaction with companies struck off under section 248 of the Companies Act,
2013 or section 560 of Companies Act, 1956, during the current year and in the previous year.

41 Registration of charges or satisfaction with Registrar of Companies

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

42 Compliance with number of layers of companies

The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read
with the Companies (Restriction on number of Layers) Rules, 2017.

44 Utilisation of Borrowed funds

(i) 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.

(ii) 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.

45 Undisclosed income

The Company does not have any undisclosed income which is not recorded in the books of account that has
been surrendered or disclosed as income during the year (and previous 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)

46 Corporate Social Responsibility

As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend
at least 2% of its average net profit for the immediately preceding three financial years on corporate social
responsibility (CSR) activities. The areas for CSR activities are mainly for environmental sustainability,
promotion of education, health care, etc. A CSR committee has been formed by the company as per the Act. The
funds are utilized through the year on these activities which are specified in Schedule VII of the Companies Act,
2013.

49 Details of Benami Property held

There are no proceedings initiated or are pending against the Company for holding any benami property under
the Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder

50 Wilful Defaulter

The Company has not been declared wilful defaulter by any bank or financial institution or government or any
government authority.

51 Capital management

For the purpose of the Company's capital management, capital includes issued equity capital, share premium
and all other equity reserves attributable to the equity holders. The primary objective of the Company's capital
management is to maximize the shareholder value and to ensure the Company's ability to continue as a going
concern.

The Company has not distributed any dividend to its shareholders. The Company monitors gearing ratio i.e.
total debt in proportion to its overall financing structure, i.e. equity and debt. Total debt mainly comprises of
current liabilities which represents - Packing Credit. The Company manages the capital structure and makes
adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying
assets.

56 The Code on Social Security 2020 (‘the Code') relating to employee benefits, during the employment and post¬
employment, has received Presidential assent on September 28, 2020. The Code has been published in the
Gazette of India. Further, the Ministry of Labour and Employment has released draft rules for the Code on
November 13, 2020. However, the effective date from which the changes are applicable is yet to be notified and
rules for quantifying the financial impact are also not yet issued.

The Company will assess the impact of the Code and will give appropriate impact in the standalone financial
statements in the period in which, the Code becomes effective and the related rules to determine the financial
impact are published. Based on a preliminary assessment, the entity believes the impact of the change will not
be significant.

57 Events after the reporting period

There are no significant subsequent events between the year ended 31 March 2025 and signing of standalone
financial statements as on 23 May 2025 which have material impact on the financials of the Company.

58 Approval of standalone financial statements

The financial statements were approved for issue by the board of directors on 23 May 2025.

59 Previous year figures have been regrouped/ reclassified to conform presentation as per Ind AS as required by
Schedule III of the Act.

As per our report of even date

For M S K A & Associates For and on behalf of Board of Directors of

Chartered Accountants Faze Three Limited

ICAI Firm Registration No.:105047W CIN: L99999DN1985PLC000197

Rajesh Murarka Ajay Anand Sanjay Anand

Partner Managing Director Whole-time Director

Membership No: 120521 DIN: 00373248 DIN: 01367853

Place : Mumbai Ankit Madhwani Akram Sati

Date : May 23, 2025 Chief Financial Officer Company Secretary

M No: A50020