m) Provisions and Contingencies

(i) Provisions involving a substantial degree of estimation in measurement are
recognized when there is a present obligation as a result of a past event and it is
probable that there will be an outflow of resources. Contingent Liabilities are not
recognized but are disclosed in the notes. Contingent Assets are neither
recognized nor disclosed in the Financial Assets.

(ii) Provisions, Contingent Liabilities and Contingent Assets are reviewed at each
Balance Sheet date in accordance with the Accounting Standard AS-29 on
"Provisions, Contingent Liabilities and Contingent Assets'" notified under the
Companies (Accounting Standards) Rules, 2006.

n) Segment Reporting

As the Company's business activities fall within a single primary business segment,
the disclosure requirements of Accounting Standards (AS)-17 on "Segment
Reporting", issued by The Institute of Chartered Accountants of India are not
applicable.

o) Use of Estimates

The preparation of financial statements in conformity with Ind AS requires the
management to make judgments, estimates and assumptions that affect the
reported amounts of revenues, expenses, assets and liabilities and the disclosure of
contingent liabilities during and at the end of the reporting period. Although these
estimates are based on the management's best knowledge of the current events and
actions, uncertainty about these assumptions and estimates could result in the
outcomes requiring a material adjustment to the carrying amounts of assets and
liabilities in future periods.

p) Financial Instruments

Financial instruments is any contract that gives rise to a financial asset of one entity and
a financial liability or equity instrument of another entity.

Financial Assets

i Initial recognition

Financial assets are recognized when the Company becomes a party to the contractual
provisions of the financial instrument. Financial assets and financial liabilities are initially
measured at fair value. Transaction costs that are directly attributable to the acquisition
or issue of financial assets and financial liabilities (other than financial assets and
financial liabilities at fair value through profit and loss) are added to or deducted from the
fair value of the financial assets or financial liabilities, as appropriate, on initial
recognition. Transaction costs directly attributable to the acquisition of financial assets or
financial liabilities at fair value through profit and loss are recognized immediately in the
statement of profit and loss.

ii Subsequent measurement

Financial assets are classified into the following specified categories: amortized cost,
financial assets at fair value through profit and loss (FVTPL), Fair value through other
comprehensive income (FVTOCI). The classification depends on the Company’s
business model for managing the financial assets and the contractual terms of cash
flows.

Debt Instrument
Amortized Cost

A financial asset is subsequently measured at amortized cost if it is held within a
business model whose objective is to hold the asset in order to collect contractual cash
flows and the contractual terms of the financial asset give rise on specified dates to cash
flows that are solely payments of principal and interest on the principal amount
outstanding.

Fair value through other comprehensive income (FVTOCI)

A ‘debt instrument’ is classified as at the FVTOCI if both of the following criteria are met:

a. The objective of the business model is achieved both by collecting contractual cash
flows and selling the financial assets.

b. The asset’s contractual cash flows represent solely payments of principal and interest.
Debt instruments included within the FVTOCI category are measured initially as well as
at each reporting date at fair value. Fair value movements are recognized in the other
comprehensive income (OCI).

On de-recognition of the asset, cumulative gain or loss previously recognized in OCI is
reclassified from the equity to statement of profit and loss.

Fair value through Profit and Loss (FVTPL)

FVTPL is a residual category for debt instruments. Any debt instrument, which does not
meet the criteria for categorization as at amortized cost or as FVTOCI, is classified as at
FVTPL. In addition, the Company may elect to designate a debt instrument, which
otherwise meets amortized cost or FVTOCI criteria, as at FVTPL. However, such
election is considered only if doing so reduces or eliminates a measurement or
recognition inconsistency (referred to as ‘accounting mismatch’). Debt instruments
included within the FVTPL category are measured at fair value with all changes
recognized in the statement of profit and loss.

Equity investments

The Company measures its equity investments at fair value through profit and loss.
However, where the Company’s management makes an irrevocable choice on initial
recognition to present fair value gains and losses on specific equity investments in other
comprehensive income, there is no subsequent reclassification, on sale or otherwise, of
fair value gains and losses to statement of profit and loss.

Derivative financial instruments

Derivative financial instruments are classified and measured at fair value through profit
and loss.

iii Derecognition of financial assets

A financial asset is derecognized only when

i) The Company has transferred the rights to receive cash flows from the asset or the
rights have expired.

ii) The Company 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 in an arrangement. Where the entity has transferred an asset, the Company
evaluates whether it has transferred substantially all risks and rewards of ownership of
the financial asset. In such cases, the financial asset is derecognized. Where the entity
has not transferred substantially all risks and rewards of ownership of the financial asset,
the financial asset is not derecognized.

Impairment of financial assets

The Company measures the expected credit loss associated with its assets based on
historical trend, industry practices and the business environment in which the entity
operates or any other appropriate basis. The impairment methodology applied depends
on whether there has been a significant increase in credit risk.

Significant increase in credit risk

The Company monitors all financial assets that are subject to the impairment
requirements to assess whether there has been a significant increase in credit risk since
initial recognition. If there has been a significant increase in credit risk the Company will
measure the loss allowance based on lifetime rather than twelve-months ECL.

The ECL allowance is based on the credit losses expected to arise over the life of the
asset (the lifetime expected credit loss), unless there has been no significant increase in
credit risk since origination, in which case, the allowance is based on the 12 months’
expected credit loss. Lifetime ECL are the expected credit losses resulting from all
possible default events over the expected life of a financial instrument.

ECL is calculated on either an individual basis or a collective basis, depending on the
nature of the underlying portfolio of financial instruments.

The Company has established a policy to perform an assessment, at the end of each
reporting period, of whether a financial instrument’s credit risk has increased significantly
since initial recognition, by considering the change in the risk of default occurring over
the remaining life of the financial instrument. The Company does the assessment of
significant increase in credit risk at a borrower level. If a borrower has various facilities
having different past due status, then the highest days past due (dpd) is considered to
be applicable for all the facilities of that borrower.

Based on the above, the Company categorizes its loans into Stage 1, Stage 2 and Stage
3 as described below:

Stage 1

All exposures where there has not been a significant increase in credit risk since initial
recognition or that has low credit risk at the reporting date and that are not credit
impaired upon origination are classified under this stage. The Company classifies all
standard advances and advances up to 30 days default under this category. Stage 1
loans also include facilities where the credit risk has improved and the loan has been
reclassified from Stage 2 or Stage 3

Stage 2

All exposures where there has been a significant increase in credit risk since initial
recognition but are not credit impaired are classified under this stage. 30 days past due
is considered as significant increase in credit risk.

Stage 3

All exposures assessed as credit impaired when one or more events that have a
detrimental impact on the estimated future cash flows of that asset have occurred are
classified in this stage. For exposures that have become credit impaired, a lifetime ECL
is recognized and interest revenue is calculated by applying the effective interest rate to
the amortized cost (net of provision) rather than the gross carrying amount. 90 days past
due is considered as default for classifying a financial instrument as credit impaired. If an
event (for e.g. any natural calamity) warrants a provision higher than as mandated under
ECL methodology, the Company may classify the financial asset in Stage 3 accordingly.

The Company’s accounting policy is not to use the practical expedient that financial
assets with ‘low’ credit risk at the reporting date are deemed not to have had a
significant increase in credit risk. As a result, the Company monitors all financial assets
that are subject to impairment for significant increase in credit risk.

Write-off

Loans and debt securities are written-off when the Company has no reasonable
expectations of recovering the financial asset (either in its entirety or a portion of it). This
is the case when the Company determines that the borrower does not have assets or
sources of income that could generate sufficient cash flows to repay the amounts subject
to the write-off. A write-off constitutes a derecognition event. The Company may apply
enforcement activities to financial assets written off.

Presentation of allowance for ECL in the Balance Sheet

Loss allowances for ECL are presented in the Balance Sheet as follows:

Ý For financial assets measured at amortized cost: as a deduction from the gross
carrying amount of the assets;

• For debt instruments measured at FVTOCI: no loss allowance is recognized in the
Balance Sheet as the carrying amount is at fair value.

Debt or equity instruments issued by the Company are classified as either financial
liabilities or as equity in accordance with the substance of the contractual arrangements
and the definitions of a financial liability and an equity instrument.

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an
entity after deducting all of its liabilities. Equity instruments issued by the Company are
recognized at the proceeds received, net of direct issue costs. Repurchase of the
Company’s own equity instruments is recognized and deducted directly in equity. No
gain or loss is recognized on the purchase, sale, issue or cancellation of the Company’s
own equity instruments. Net Gain/ loss on fair value changes includes the effect of
financial instruments held at fair value through Profit or loss (FVTPL) for continuing and
discontinuing portfolio.

Financial liabilities

i Classification

Financial liabilities are recognized when Company becomes party to contractual
provisions of the instrument. The Company determines the classification of its financial
liability at initial recognition. All financial liabilities are recognized initially at fair value plus
transaction costs that are directly attributable to the acquisition of the financial liability
except for financial liabilities classified as fair value through profit or loss. The Company
classifies all financial liabilities at amortized cost or fair value through profit or loss.

ii Subsequent measurement

For the purposes of subsequent measurement, financial liabilities are classified in two
categories:

i) Financial liabilities measured at amortized cost

ii) Financial liabilities measured at FVTPL (fair value through profit or loss)
i) Financial liabilities measured at amortized cost

After initial recognition, financial liabilities are subsequently measured at amortized cost
using the EIR method. Gains and losses are recognized in the 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 fee or costs that are an integral part of the EIR. The EIR amortization is
included in finance costs in the statement of profit and loss.

After initial recognition financial liabilities are subsequently measured at amortized cost
using the effective interest rate (EIR) method. Gains and losses are recognized in the
statement of profit and loss when the liabilities are derecognized as well as through the
EIR amortization process. The EIR amortization is included in finance costs in the
statement of profit and loss.

iii De-recognition of financial liabilities

A financial liability is de-recognized 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 de-recognition
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 or loss.

iv Reclassification of financial assets and liabilities

The Company does not reclassify its financial assets subsequent to their initial
recognition. Financial liabilities are never reclassified. The Company did not reclassify
any of its financial assets or liabilities in FY 2022-23 and until the year ended March 31,
2024.

3. Critical Estimates and Judgments

The preparation of standalone financial statements in conformity with Ind AS requires
management to make judgments, estimates and assumptions, that affect the application
of accounting policies and the reported amounts of assets, liabilities, income, expenses
and disclosures of contingent assets and liabilities at the date of these standalone
financial statements and the reported amounts of revenue and expenses for the year
presented. Actual results may differ from these estimates. Estimates and underlying
assumptions are reviewed at each balance Sheet date. Revisions to accounting
estimates are recognized in the period in which the estimate is revised and future
periods affected.

37. The Company is taking the inventories of its Knitwear division on the basis of stock

register maintained. However, in the year ended 31.03.2024 the inventory of its
knitwear division based on physical stock taking as the knitwear division of the
company is not maintaining the proper stock registers.

38. In the opinion of the Board, all the Current Assets, Loans & Advances have a value on
realization in the ordinary course of business at least equal to the amount at which they
are stated except as expressly stated otherwise.

39. Expenditure in Foreign Currency - Rs. NIL (Previous Year-Rs. NIL)

40. Contingent Liabilities- Rs. NIL (Previous Year- Rs. NIL)

41. During the year, the company has availed working capital facilities from bank on the
security of current assets. The company is submitting the monthly return of its current
assets with the bank.

On the review of the monthly returns submitted by the company with the bank, it has
been observed that the quantities mentioned in the statements was in agreement with
the stock register (except for knitwear division) and the receivables/debtors submitted
are generally in agreement with the books of accounts.

The company has not been declared as a wilful defaulter by the bank or other lender in
accordance with the guidelines issued by Reserve Bank of India.

45. Financial Risk Management

The Company's principal financial liabilities comprise Borrowings and trade and other
payables. The main purpose of these financial liabilities is to finance the Company's
operations and to support its operations. The Company's principal financial assets
include investments, trade and other receivables, and cash and cash equivalents that
derive directly from its operations.

The Company is exposed to various financial risks. These risks are categorised 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) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a
financial instrument fails to meet its contractual obligations. Credit risk arises principally
from the Company's trade receivables, receivables from deposits and also arises from
cash held with banks and financial institutions. The maximum exposure to credit risk is
equal to the carrying value of the financial assets.

The objective of managing counterparty credit risk is to prevent losses in financial
assets. The Company assesses the credit quality of the counterparties, taking into
account their financial position, past experience and other factors. The Company limits
its exposure to credit risk of cash held with banks by dealing with highly rated banks and
institutions

Trade receivables are typically unsecured and are derived from revenue earned from
customers located in India. Credit risk has always been managed by the Company
through credit approvals, establishing credit limits and continuously monitoring the
creditworthiness of customers to which the Company grants credit terms in the normal
course of business. On account of adoption of Ind AS 109 - Financial Instruments ("Ind
AS 109"), the Company uses expected credit loss (ECL) model to assess the impairment
loss. The Company computes the expected credit loss allowance for trade receivables
based on available external and internal credit risk factors such as the ageing of its
dues, market information about the customer, industry information and the Company's
historical experience for customers with forward looking experience

(b) Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial
obligations as they become due. The Company manages its liquidity risk by ensuring, as
far as possible, that it will always have sufficient liquidity to meet its liabilities when due

(c) 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 three types of
risk: interest rate risk, currency risk and other price risk, such as equity price risk and
commodity risk. Financial instruments affected by market risk include borrowings.

(i) Foreign Currency Risk

The Company does not have any exposure in foreign currency. Hence, there is no
Foreign Currency Risk in the Company.

(ii) 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 long-term debt obligations with floating interest rates, if applicable

Interest sensitivity Analysis :

Since the long-term debt obligations carry fixed interest rates, no risk is anticipated on
account of interest rate changes

46. No proceedings have been initiated on or pending against the company for holding
benami property under the Benami Transactions (Prohibition) Act, 1988 [45 of 1988]
and Rules made thereunder.

47. ADDITIONAL REGULATORY INFORMATION AS PER DIVISION III SCHEDULE III

OF THE COMPANIES ACT, 2013

a) No funds have been advanced or loaned or invested by the company to or in any other
persons or entities, including foreign entities("Intermediaries"), with the understanding,
whether recorded in writing or otherwise, that the intermediary shall, whether, 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 provide any
guarantee, security or the like on behalf of the ultimate Beneficiaries.

b) No funds have been received by the company from any persons or entities, including
foreign entities ("Funding Parties") with the understanding, whether recorded in writing
or otherwise, that the company shall, whether, directly or indirectly, lend invest in other
persons or entities identified in any manner whatsoever by or on behalf of the Funding
Party ("Ultimate beneficiaries") or provide any guarantee, security or the like on behalf
of the Ultimate beneficiaries.

c) The company does not have any long-term contracts including derivative contracts for
which there are any material foreseeable losses.

d) There was no amount which were required to be transferred to the Investor Education
and Protection Fund by the Company.

e) During the year, the company has not entered any transactions with companies struck
off under section 248 of the Companies Act ,2013 or section 560 of Companies Act,
1956.

f) There are no transactions which have not been recorded in the books of accounts and
which have been surrendered or disclosed as income during the year in the tax
assessments under the Income Tax Act, 1961.

g) There is one charge for Rs. 21.00 Lakhs yet to filed by the company with ROC. However,
there is no satisfaction of charge yet to be registered with the ROC during the year.

h) The company has not traded or invested in Crypto Currency or Virtual Currency during
the financial year.

i) Section 135 of the Companies Act, 2013 pertaining to Corporate Social responsibility is
not applicable to the company.

48. Corresponding figures of the previous year have been regrouped/rearranged, wherever
deemed necessary.

Signature to Notes 1 to 48

As per our Report of even date attached On behalf of the Board

For Ashok Shashi & Co.

(FRNo. 013258N)

Chartered Accountants (Ritesh Arora) (Rijul Arora)

(00080156) (07477956)

Chairman cum Executive

(Ashok Mehta) Mg. Director Director & CEO

Prop

M No.080969

(Neha Chhabra)

Place: Ahmedgarh (A-30546)

Dated: 21.05.2025 Company Secretary