(s) Provisions, contingent liabilities and contingent assets

Provisions are recognised 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 a reliable estimate can be made of the amount of the obligation.

Prov'sions are measured at the estimated expenditure required to settle the present obligation, based on the
most reliable evdence available at the reporting date, including the risks and uncertainties associated with
the present obligation. Prov'sions are determined by discounting the expected future cash flows (representing
the best estimate of the expenditure required to settle the present obligation at the balance sheet date) at a
pre-tax rate that refects current market assessments of the time value of money and the risks specific to the
liability. The unwinding of the discount is recognised as finance cost.

Any reimbursement that the Company can be v'rtually certain to collect from a third party with respect to the
obligation is recognised as a separate asset. However, this asset may not exceed the amount of the related
provsion.

All prov'sions are rev'ewed at each reporting date and adjusted to refect the current best estimate.

In those cases where the outflow of economic resources as a result of present obligations is considered
improbable or remote, no liability is recognised.

Contingent liability is a possible obligation arising from past events and 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 but is not recognised because it is not
possible that an outflow of resources embodying economic benefit will be required to settle the obligations
or reliable estimate of the amount of the obligations cannot be made. The Company discloses the existence of
contingent liabilities in other notes to standalone financial statements.

Contingent assets usually arise from unplanned or other unexpected events that give rise to the possibility
of an inflow of economic benefits. Contingent assets are not recognised. However, when inflow of economic
benefits is probable, related asset is disclosed.

(t) Operating Segments

Operating segments are reported in a manner consistent with the internal reporting provded to the chief
operating decision maker. The accounting policies adopted for segment reporting are in conformity with the
accounting policies adopted by the Company. As per Ind As 108 Operating Segments are identified based on
the nature of products, the different risks and returns, being the performance measure of the Company. The
company is engaged in the business of manufacture and distribution of Nonwoven Fabrics. Further disclosure
of segments based on geography by location of customers i.e. in India and outside India has been made.

(u) Income tax
Current tax

Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the
taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or
substantively enacted in India, at the reporting date.

Current tax relating to items recognised outside statement of profit or loss is recognised (other comprehensive
income). Management periodically evaluates positions taken in the tax returns with respect to situations in
which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

Current tax assets is offset against current tax liabilities if, and only if, a legally enforceable right exists to set
off the recognised amounts and there is an intention either to settle on a net basis, or to realise the asset and
settle the liability simultaneously.

Deferred tax

Deferred tax is provided using the liability method on temporary differences between the tax bases of assets
and liabilities and their carrying amounts for financial reporting purposes at the reporting date.

Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax
credits and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that
taxable profit will be available against which the deductible temporary differences, and the carry forward of
unused tax credits and unused tax losses can be utilised. Deferred tax liabilities are generally recognised for
all the taxable temporary differences.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it
is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset
to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised
to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be
recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when
the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or
substantively enacted at the reporting date.

Deferred tax relating to items recognised outside statement of profit or loss is recognised outside statement
of profit or loss (either in other comprehensive income or in equity). Deferred tax items are recognised in
correlation to the underlying transaction either in OCI or directly in equity.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current
tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same
taxation authority.

(v) Leases

Company as a lessee

The Company assesses if a contract is or contains a lease at inception of the contract. A contract is, or contains,
a lease if the contract conveys the right to control the use of an identified asset for a period time in exchange
for consideration.

The Company recognizes a right-of-use asset and a lease liability at the commencement date, except for
short-term leases of twelve months or less and leases for which the underlying asset is of low value, which are
expensed in the statement of operations on a straight-line basis over the lease term.

The lease liability is initially measured at the present value of the lease payments that are not paid at the
commencement date, discounted using the interest rate implicit in the lease, or, if not readily determinable,
the incremental borrowing rate specific to the company, term and currency of the contract. Lease payments
can include fixed payments, variable payments that depend on an index or rate known at the commencement
date, as well as any extension or purchase options, if the Company is reasonably certain to exercise these

options. The lease liability is subsequently measured at amortized cost using the effective interest method and
remeasured w'th a corresponding adjustment to the related right-of-use asset when there is a change in future
lease payments in case of renegotiation, changes of an index or rate or in case of reassessments of options.

The right-of-use asset comprises, at inception, the initial lease liability, any initial direct costs and, when
applicable, the obligations to refurbish the asset, less any incentives granted by the lessors. The right-of-
use asset is subsequently depreciated, on a straight-line basis, over the lease term, if the lease transfers the
ownership of the underlying asset to the Company at the end of the lease term or, if the cost of the right-of-use
asset reflects that the lessee will exercise a purchase option, over the estimated useful life of the underlying
asset. other are also subject to testing for impairment if there is an indicator for impairment. Variable lease
payments not included in the measurement of the lease liabilities are expensed to the statement of operations
in the period in which the events or conditions which trigger those payments occur.

The Company applies the low-value asset recognition exemption on a lease-by-lease basis, if the lease qualifies
as leases of low-value assets. In making this assessment, the Company also factors below key aspects

a. the assessment is conducted on an absolute basis and is independent of the size, nature, or circumsta
lessee.

b. the assessment is based on the value of the asset when new, regardless of the asset's age at the time of the
lease.

c. the lessee can benefit from the use of the underlying asset either independently or in combination w'th
other readily available resources, and the asset is not highly dependent on or interrelated with other
assets.

d. if asset is subleased or expected to be subleased, the head lease does not qualify as a lease of a low-
value asset.

Company as a lessor

Leases in which the Company does not transfer substantially all the risks and rewards of ownership of an asset
are classified as operating leases. Rental income from operating lease shall not be straight-lined, if escalation
in rentals is in line with expected inflationary cost. Initial direct costs incurred in negotiating and arranging
an operating lease are added to the carrying amount of the leased asset and recognised over the lease term on
the same basis as rental income.

(w) Cash and Cash Equivalents

Cash and cash equivalents comprise cash at bank and in hand, short-term deposits and highly liquid
investments w'th an original maturity of three months or less which are readily convertible in cash and subject
to insignificant risk of change in value.

(x) Government Grants

The Company may receive government grants that require compliance with certain conditions related to the
Company's operating activities or are provided to the company by way of financial assistance on the basis of
certain qualifying criteria. Government grants are recognised at fair value when there is reasonable assurance
that the grant w'll be received upon the company complying with the conditions attached to the grant.
Accordingly, government grant :

(i) related to incurring specific expenditures are taken to the Statement of Profit and Loss on the same basis
and in the same periods as the expenditures incurred and disclosed in other income.

(ii) related to Packaging Scheme of Incentives Government of Maharashtra are initially carried by setting up
these grants as Deferred Government Grants and amortised/recognised in the statement of profit and loss
on straight line method and disclosed in Other Income.

(iii) related to acquisition of property, plant & equipment are initially carried by setting up these grants as
Deferred Government Grants and amortised/recognised in the statement of profit and loss on straight line
method and netted off from depreciation expenses.

(iv) Government grants under Export Promotion Credit Guarantee Scheme (EPCG) related to duty saved
on import of property, plant and equipment are initially carried by setting up this grant as "Deferred
Government Grants" and credited to the statement of profit and loss on the basis of pattern of fulfilment
of obligations associated with the grant received and shown under "Other Income".

(y) Earnings per share

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

Diluted earnings per share is computed by dividing net profit or loss for the year attributable to the equity
shareholders of the Company and weighted average number of equity shares considered for deriving basic
earnings per equity share and also the weighted average number of equity shares that could have been issued
upon conversion of all dilutive potential equity shares. The dilutive potential equity shares are adjusted for the
proceeds receivable had the equity shares been actually issued at fair value (i.e. the average market value of
the outstanding equity shares).

(z) Fair value measurement

In determining the fair value of its financial instruments, the Company uses a variety of methods and
assumptions that are based on market conditions and risks existing at each reporting date. The methods
used to determine fair value include discounted cash flow analysis, available quoted market prices and dealer
quotes. All methods of assessing fair value result in general approximation of value, and such value may never
actually be realized. For financial assets and liabilities maturing within one year from the Balance Sheet date
and which are not carried at fair value, the carrying amounts approximate fair value due to the short maturity
of these instruments.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date, regardless of whether that price is directly observable
or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the
Company takes into account the characteristics of the asset or liability, if market participants would take those
characteristics into account when pricing the asset or liability at the measurement date.

In addition, for financial reporting purposes, fair value measurements are categorized into Level 1, 2 or 3
based on the degree to which the inputs to the fair value measurements are observable and the significance of
the inputs to the fair value measurement in its entirety, which are described as follows:

Level 1 inputs are quoted prices /net asset value (unadjusted) in active markets for identical assets or
liabilities that the company can access at the measurement date;

Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset
or liability, either directly or indirectly; and

Level 3 inputs are unobservable inputs for the asset or liability.

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. Financial instruments also include derivative contracts such as foreign
currency forward contracts and commodity futures contracts.

(aa)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.

Financial Assets

Initial recognition and measurement

Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual
provisions of the financial instrument. Financial instrument (except trade receivables) are measured initially
at fair value adjusted for transaction costs, except for those carried at fair value through profit or loss which
are measured initially at fair value. Trade receivables are measured at their transaction price unless it contains
a significant financing component in accordance with Ind AS 115 for pricing adjustments embedded in the
contract.

Subsequent measurement (Non-derivative financial assets)

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

i. Debt instruments at amortised cost

ii. Debt instruments at fair value through other comprehensive income (FVTOCI)

iii. Debt instruments, derivatives and equity instruments at fair value through profit or loss (FVTPL)

i. Financial assets carried at amortised cost

A financial asset is measured at the amortised cost, if both the following conditions are met:

a. The asset is held within a business model whose objective is to hold assets for collecting contractual
cash flows, and

b. Contractual terms of the asset give rise on specified dates to cashflows that are solely payments of
principal and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortised cost using
the effective interest rate (EIR) method. Amortised 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
amortisation is included in finance income in the profit or loss. The losses arising from impairment are
recognised in the profit or loss. This category generally applies to trade and other receivables.

ii. Financial assets at fair value through other comprehensive income (FVTOCI)

Financial assets are measured at fair value through other comprehensive income if these financial assets
are held within a business whose objective is achieved by both collecting contractual cash flows on
specified dates that are solely payments of principal and interest on the principal amount outstanding
and selling financial assets.

On initial recognition, the Company has an irrevocable option to present changes in the fair value of
equity investments not held for trading in OCI. This option is made on an investment-by-investment basis.
Investments in equity instruments at FVTOCI are subsequently measured at fair value with gains and losses
arising from changes in fair value recognised in other comprehensive income and accumulated in other
Equity. Where the asset is disposed of, the cumulative gain or loss prev'ously accumulated in the other
Equity is directly reclassified to retained earnings.

iii. Financial assets at fair value through Profit & Loss (FVTPL)

Financial assets, which does not meet the criteria for categorization as at amortized cost or as FVOCI, are
classified as at FVTPL.

Financial assets included within the FVTPL category are measured at fair value with all changes recognized in
the Statement of Profit & Loss.

Derivatives

The Company uses derivative financial instruments, such as forward currency contracts to hedge its foreign
currency risks and interest rate risk respectively. Such derivative financial instruments are initially recognised
at fair value on the date on which a derivative contract is entered into and are subsequently re-measured at

fair value provided by the respective banks. Derivatives are carried as financial assets when the fair value is
positive and as financial liabilities when the fair value is negative.

Any gains or losses arising from changes in the fair value of derivatives are recorded directly to statement of
profit and loss.

De-recognition of financial assets: A financial asset is primarily de-recognised when the contractual rights to
receive cash flows from the asset have expired or the Company has transferred its rights to receive cash flows
from the asset.

Financial liabilities

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or
loss, loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective
hedge, as appropriate. All financial liabilities are recognised initially at fair value and, in the case of loans and
borrowings and payables, net of directly attributable transaction costs.

The Company's financial liabilities include trade and other payables, loans and borrowings including bank
overdrafts, financial guarantee contracts and derivative financial instruments.

Subsequent measurement (Non-derivative financial liabilities)

Subsequent to initial recognition, all non-derivative financial liabilities are measured at amortised cost using
the effective interest method.

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 recognised in the statement of profit or loss.

Impairment of financial assets

In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for measurement and
recognition of impairment loss for financial assets. ECL is the weighted-average of difference between all
contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that
the Company expects to receive, discounted at the original effective interest rate, with the respective risks of
default occurring as the weights. When estimating the cash flows, the Company is required to consider:

• AH contractual terms of the financial assets (including prepayment and extension) over the expected life
of the assets.

• Cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual
terms.

Trade receivables: In respect of trade receivables, the Company applies the simplified approach of Ind AS
109, which requires measurement of loss allowance at an amount equal to lifetime expected credit losses.
Lifetime expected credit losses are the expected credit losses that result from all possible default events over
the expected life of a financial instrument.

Other financial assets: In respect of its other financial assets, the Company assesses if the credit risk on
those financial assets has increased significantly since initial recognition. If the credit risk has not increased
significantly since initial recognition, the Company measures the loss allowance at an amount equal to
12-month expected credit losses, else at an amount equal to the lifetime expected credit losses.

When making this assessment, the Company uses the change in the risk of a default occurring over the expected
life of the financial asset. To make that assessment, the Company compares the risk of a default occurring on
the financial asset as at the balance sheet date with the risk of a default occurring on the financial asset
as at the date of initial recognition and considers reasonable and supportable information, that is available
without undue cost or effort, that is indicative of significant increases in credit risk since initial recognition.
The Company assumes that the credit risk on a financial asset has not increased significantly since initial
recognition if the financial asset is determined to have low credit risk at the balance sheet date.

Offsetting of financial instruments: Financial assets and financial liabilities are offset, and the net amount
is reported in the balance sheet if there is a currently enforceable legal right to offset the recognised amounts
and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.

(ab) Financial guarantee contracts

Financial guarantee contracts are recognised as a financial liability at the time the guarantee is issued. The
liability is initially measured at fair value and subsequently at the higher of (i) the amount determined in
accordance with the expected credit loss model as per IndAS 109 and (ii) the amount initially recognised
less, where appropriate, cumulative amount of income recognised in accordance with the principles of Ind AS
115. The fair value of financial guarantees is determined based on the present value of the difference in cash
flows between the contractual payments required under the debt instrument and the payments that would be
required without the guarantee, or the estimated amount that would be payable to a third party for assuming
the obligations.

(ac) Recent amendments

(i) New and amended standards adopted by the Company: The Ministry of Corporate Affairs ("MCA") notifies
new standards or amendments to the existing standards under Companies (Indian Accounting Standards)
Rules as issued from time to time. For the year ended March 31, 2025, MCA has notified Ind AS - 117
Insurance Contracts and amendments to Ind AS 116 - Leases, relating to sale and leaseback transactions,
applicable to the Company w.e.f. April 1 , 2024. The Company has reviewed the new pronouncements
and based on its evaluation has determined that it does not have any significant impact on its financial
statements.

(ii) New and amended standards issued but not effective: On May 09 2025, MCA notifies the amendments
to Ind AS 21 - Effects of Changes in Foreign Exchange Rates. These amendments aim to provide clearer
guidance on assessing currency exchangeability and estimating exchange rates when currencies are
not readily exchangeable. The amendments are effective for annual periods beginning on or after April
01, 2025. The Company is currently assessing the probable impact of these amendments on its financial
statements.

19C Securities

(i) Secured by first pari passu charge over immovable properties including land and buildings and movable fixed
assets (both present and future) of Nonwovens fabrics division of the Company, situated at village Mundegaon at
village Mukane, Igatpuri, District Nasik in the state of Maharashtra.

(ii) Foreign currency term loans aggregating Rs 11,815.53 lakhs (Previous year Rs. 13,645.16 lakhs) are guaranteed
by Euler Hermes Aktiengesellschaft, Germany in addition to security given above.

19D Terms of repayments of non-current portion of borrowings :

(a) Loan of Rs. 9,667.25 lakhs (Previous year Rs. 11,545.90 lakhs)- Repayable in 9 fixed half yearly equal
instalments (Previous year 11 fixed half yearly equal instalments).

(b) Loan of Rs. 6,083.84 lakhs (Previous year Rs. 7,774.24 lakhs)- converted into foreign currency loan in earlier
year and repayable in 13 quarterly equal instalments (Previous year 17 quarterly equal instalments).

(c) Loan of Rs. 8,687.02 lakhs (Previous year Rs. 9,846.99 lakhs)- converted into foreign currency loan in earlier
year and repayable in 25 quarterly instalment (Previous year 29 quarterly instalment).

(e) Loan of Rs. 6,997.40 lakhs (Previous year Rs. 9,572.82 lakhs) was converted into foreign currency loan during the
year and repayable in 10 fixed quarterly equal instalments (Previous year 14 fixed quarterly equal instalments).

(f) Loan of Rs. 2,520.85 lakhs (Previous year Rs. 3,284.44 lakhs ) was converted into foreign currency loan
during the year and repayable in 12 fixed quarterly equal instalments (Previous year 16 fixed quarterly equal
instalments).

19E Foreign currency loans - Fixed rate loan with interest rate ranging from 0.84% to 5.5% (Previous year fixed rate
0.84% to 5.5%) and floating rate loan with interest linked to EURIBOR plus spread of 1.80% (Previous year- spread
of 1.84%)

24 A Securities

(i) Secured by way of hypothecation of all current assets (both current and future) of Nonwovens fabrics division
of the Company. These are further secured by way of second pari-pasu charge on all fixed assets of the said
division and also secured by pledge of fixed deposits of Rs. 6,288.13 lakhs (Previous year Rs. 8,374.60 lakhs).
Refer note 6 and 12.

(ii) In previous year, loans repayable on demand is secured by lien on fixed deposit and interest accrued thereon and
carries interest based on MCLR.

(iii) Secured by way of hypothecation of mutual funds of Rs. 5,701.16 lakhs (Previous year : Rs. 5,244.21 lakhs).

(iv) Refer Note 19C and 56.

28 The Company has received advances in foreign currency from various overseas customers aggregating to
Rs. 2,841.20 lakhs (Previous year Rs. 2,841.20 lakhs) in earlier years, out of which:

(a) Rs. 607.67 lakhs (Previous year Rs.607.67 lakhs) were settled in earlier years, but the requisite approval for write¬
back under FEMA has not been received; accordingly, the same has not been written back till March 31, 2025.

(b) Rs. 828.99 lakhs (Previous year Rs. 828.99 lakhs), relating to advances from overseas customers who have filed legal
suits, remain sub-judice; thus, the Company continued to carried advance, pending settlement of the legal cases.

(c) Rs. 1,404.51 lakhs (Previous year Rs. 1,404.51 lakhs) remain unadjusted as of March 31, 2025, for more than nine
months from the date of the advance receipt, which exceeds the permitted time period under the RBI Master
Direction on Export of Goods, as amended by the Reserve Bank of India. The management has initiated the
process of seeking the required approval for settlement of payables or extensions under FEMA.

Note No. 40 : Exceptional items

(a) The Company has given Rs. 9,148.95 lakhs to JindaL India Power Limited (formerly known as JindaL India Thermal
Power Limited) for advance against power purchase which was written off in earlier year. The Company has
recovered in current year Rs. 13,650.88 lakhs (including Rs. 4,501.93 lakhs interest thereon) which has been
shown as exceptional item.

(b) The Company has a non-current investment in equity shares of its Subsidiary, JPF Netherland Investment B.V.
amounting to Rs. 54,840.69 lakhs (previous year Rs. 43,194.59 lakhs). An impairment assessment was made as
at March 31, 2025 using the discounted cash flow model and the key assumption used in calculating the value in
use as below:

• Terminal growth rate is assumed at 3.5% (previous year Nil)and is based on industry growth rate.

• The free cash flow arrived are at discounted to present value using weighted average cost of capital (WACC) at
the rate of 8.74% (including 1.75% addition alpha/risk) (previous year Nil)

• The Equity value of JPF Netherland B.V. was determined to be Rs. 52,236.25 lakhs (prev'ous year Nil) (3.77
Million euro/share) as against the cost of acquisition of Rs. 54,840.69 lakhs (previous year Rs. 43,194.59
lakhs).

The company has performed an impairment test of its investment in JPF Netherland Investment B.V. during the
current financial year. Based on this assessment, a provision of Rs. 2,604.44 lakhs (prev'ous year Nil) has been
recorded in financial statements.

43.11 Description of risk exposures:

Valuations are performed on certain basic set of pre-determined assumptions and other regulatory framework
which may vary over time. Thus, the Company is exposed to various risks in prov'ding the above gratuity benefit
which are as follows:

Discount Rate risk: Discount Rate risk: The present value of the defined benefit obligation is calculated using
discount rate based on Government bonds.

Interest Rate risk: The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will
result in an increase in the ultimate cost of prov'ding the above benefit and will thus result in an increase in the
value of the liability (as shown in financial statements).

Liquidity Risk: This is the risk that the Company is not able to meet the short-term gratuity payouts. This may
arise due to non availability of enough cash / cash equivalent to meet the liabilities or holding of illiquid assets
not being sold in time.

Salary Escalation Risk: The present value of the defined benefit plan is calculated with the assumption of
salary increase rate of plan participants in future. Dev'ation in the rate of increase of salary in future for plan
participants from the rate of increase in salary used to determine the present value of obligation will have a
bearing on the plan's liability.

Demographic Risk: The Company has used certain mortality and attrition assumptions in valuation of the liability.
The Company is exposed to the risk of actual experience turning out to be worse compared to the assumption.

Note No. 47 Disclosures of deferred Government grants / assistance / subsidies

47.01 Under the Package Scheme of Incentive 2013 approved by the Government of Maharashtra, the Company is
entitled to industrial promotion subsidy to the extent of 100% of the fixed capital investment or to the extent of
taxes paid to the State Government in next 20 years from the date of commercial production, whichever is lower.
During the year, subsidy receivable under the above scheme aggregating Rs Nil (Previous year Rs Nil) has been
accounted by setting up these grants as deferred Government grants as "Non-Current/Current Liabilities" and
amortised/recognised in the statement of profit and loss on straight line method over the useful life of related
plant and machinery and disclosed in "Other Income".

47.02 Rs. Nil (Previous year Rs. 113.49 lakhs) accounted as Deferred Government Grants for duty saved on import
of capital goods and spares under the EPCG scheme. Under the scheme, the company is committed to export
goods at the prescribed times of duty saved on import of capital goods over a specified period of time. In case
such commitments are not met, the company would be required to pay the duty saved along with interest to the
regulatory authorities. Such grants recognised are released to the statement of profit & loss based on fulfilment
of related export obligations.

47.03 Non-woven fabrics division of the Company has received / receivable Rs. 1,692.97 lakhs (Previous year
Rs 1,565.90 lakhs) being subsidy for electricity tariff under Government of Maharashtra scheme for textile
industry in respect of capital investment made in previous year and disclosed in other income. (Refer note 32)

47.04 The Company is entitled to certain capital subsidy under TUFS scheme under State Textile Policy 2018-23. The
Company has recognised the capital subsidy of Rs. Nil (Previous year Rs 36,542.01 lakhs) with the Government
of Maharashtra for the expansion made in earlier year, in accordance with Ind AS 20. Upon submission of the
subsidy application during the year, the division has accounted for subsidy amortization as deduction from
depreciation cost.

Level 1: hierarchy includes financial instruments measured using quoted prices / net asset value. This includes
listed equity instruments, traded bonds, alternate investment funds and mutual funds that have quoted price /
net asset value. The fair value of all equity instruments which are traded in the stock exchanges is valued using
the closing price as at the reporting period.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded
bonds) is determined using valuation techniques which maximize the use of observable market data and rely
as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are
observable, the instrument is included in level 2; and

Level 3: Inputs which are not based on observable market data (unobservable inputs). Fair values are determined
in whole or in part using a net asset value or valuation model based on assumptions that are neither supported
by prices from observable current market transactions in the same instrument nor are they based on available
market data.

There are no transfers between level 1 and level 2 during the year.

(b) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

- the use of quoted market prices or net asset value for similar instruments.

- the fair value of the remaining financial instruments is determined using discounted cash flow analysis.

All of the resulting fair value estimates are included in level 2 or level 3, where the fair values have been
determined based on present values and the discount rates used were adjusted for counterparty or own
credit risk.

The Company has obtained the valuation report from a registered valuer, required for financial reporting
purposes, including level 3 fair values.

The main level 3 inputs for unlisted preference shares used by the Company are derived and evaluated as follows:

- Risk adjusted discount rates are estimated based on expected cash inflows arising from the instrument and the
entity's knowledge of the business and how the current economic environment is likely to impact it.

- The fair market value of unquoted equity shares was computed on NAV method based on underlying equity
shares of listed entity on reporting date.

Note No. 52 : Financial risk management

(a) Risk management framework

The Company's board of directors has overall responsibility for the establishment and oversight of the Company's
risk management framework. The board of directors has established the processes to ensure that executive
management controls risks through the mechanism of properly defined framework.

The Company's risk management policies are established to identify and analyse the risks faced by the Company,
to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies
and systems are reviewed by the board annually to reflect changes in market conditions and the Company's
activities. The Company, through its training and management standards and procedures, aims to maintain a
disciplined and constructive control environment in which all employees understand their roles and obligations.

The Company is exposed to credit risk, liquidity risk, market risk, foreign currency risk and interest rate risk. The
Company's management oversees the management of these risks. The management reviews and agrees policies
for managing each of these risks, which are summarised below.

(b) 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, and arises principally from the Company's receivables from customers and
investments in debt securities.

The carrying amount of financial assets represents the maximum credit exposure. The Company monitor credit
risk very closely both in domestic and export market. The Management's impact analysis shows credit risk and
impact assessment as low.

Trade and other receivables

The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer.
However, management also considers the factors that may influence the credit risk of its customer base, including
the default risk of the industry and country in which customers operate.

The Company's management has established a credit policy under which each new customer is analysed
individually for creditworthiness before the Company's standard payment and delivery terms and conditions are
offered. The Company's review includes market check, industry feedback, past financials and external ratings, if
they are available, and in some cases bank references. Sale limits are established for each customer and reviewed
quarterly. Any sales exceeding those limits require appropriate approvals.

The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer.
However, management also considers the factors that may influence the credit risk of its customer base, including
the default risk of the industry and country in which customers operate.

The Company establishes an allowance for impairment that represents its expected credit losses in respect of
trade and other receivables. The management uses a simplified approach for the purpose of computation of
expected credit loss for trade receivables.

Financial guarantee contracts

A financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse the
holder for a loss it incurs because a specified debtor fails to make payments when due in accordance with the
terms of a debt instrument.

The Company manages and controls credit risk by setting limits on the amount of risk it is willing to accept for
individual entities within the group, and by monitoring exposures in relation to such limits. It is the responsibility
of the Board of Directors to review and manage credit risk.

The Company has, based on current available information and based on the policy approved by the Board of
Directors, calculated impairment loss allowance using the Expected Credit Loss (ECL) model to cover the
guarantees provided to banks.

The Company has assessed the credit risk associated with its financial guarantee contracts for allowance for
Expected Credit Loss (ECL) as at the respective year end. The Company makes use of various reasonable supportive
forward-looking parameters which are both qualitative as well as quantitative while determining the change in
credit risk and the probability of default.

The Company has developed an ECL Model that takes into consideration the stage of delinquency, Probability of
Default (PD), Exposure at Default (EAD) and Loss Given Default (LGD).

I. Probability of Default (PD): represents the likelihood of default over a defined time horizon. The definition
of PD is taken as 90 days past due for all loans.

II. Exposure at Default (EAD): represents what is the user's likely borrowing at the time of default.

III. Loss Given Default (LGD): represents expected losses on EAD given the event of default.

Each financial guarantee contract is classified into (a) Stage 1, (b) Stage 2 and (c) Stage 3 (Default or Credit
Impaired). Delinquency buckets have been considered as the basis for the staging of all credit exposure under
the guarantee contract in the following manner:

The Company's maximum exposure relating to financial guarantees is Rs. 41,091.38 lakhs (Previous year
Rs 36,237.26 lakhs).

Considering the creditworthiness of entities within the group in respect of which financial guarantees have been
given to banks, the management believes that the group entities have a low risk of default and do not have any
amounts past due. Accordingly, no allowance for expected credit loss needs to be recognised as at respective
period-ends.

Investments

Investments are reviewed for any fair valuation loss on a periodic basis and necessary provision/fair valuation
adjustments have been made based on the either fair valuation available or valuation carried by the independent
valuer, where applicable and the management does not expect any investee entities to fail to meet its
obligations.Where book value of any investment became negative, adequate provision for impairment has been
provided in the books. Accordingly provision for impairment on investment of Rs 2,604.44 lakhs (Previous year
Rs 4.50 lakhs).

Loans

Credit risk on loans is generally low as the said loans have been given to the group companies and no material
impairment loss has been recognized against these loans. The Company management has analysed individually
for creditworthiness before the loans are offered.

During the year, the Company has not written off any other receivables. However, based on an assessment of
the recoverability of these balances and in accordance with Ind AS 109 - Financial Instruments, the Company
does not expect to receive future cash flows or recoveries from these receivables within the next 12 months.
Accordingly, an allowance for expected credit loss has been recognized to reflect the estimated impairment of
these financial assets.

Cash and bank balances

Credit risk on cash and cash equivalent, deposits with the bank is generally low as the said deposits have been
made with the banks who have been assigned high credit rating by international and domestic rating agencies.
Receivable from Government

The Company's receivables from the Government of India/State, credit risk is considered Nil hence, no impairment
provision has been made in the books.

Others

Other than trade receivables and other receivables reported above, the Company has no other material financial
assets which carries any significant credit risk.

(c) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with
its financial liabilities that are settled by delivering cash or another financial asset. The Company's approach to
managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when
they are fallen due, under both normal and stressed conditions, without incurring unacceptable losses or risking
damage to the Company's reputation.

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the
availability of funding through an adequate amount of committed credit facilities to meet obligations when due
and to close out market positions. Due to the dynamic nature of the underlying businesses, Company treasury
maintains flexibility in funding by maintaining availability under committed credit lines.

Management monitors rolling forecasts of the Company's liquidity position (comprising the undrawn borrowing
facilities) and cash and cash equivalents on the basis of expected future cash flows. This is generally carried out
at business division level and monitored through respective divisional office of the Company in accordance with
practice and limits available with the Company. These limits vary to take into account requirement, future cash
flow and the liquidity in which the entity operates. In addition, the Company's liquidity management strategy
involves projecting cash flows in major currencies and considering the level of liquid assets necessary to meet
these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and
maintaining debt financing plans.

(a) Financing arrangements

The Company had access to the undrawn working capital facilities. These facilities may be drawn at any
time and may be terminated by the bank without notice. Working capital facilities are in Indian rupee and
in foreign currency and have an average maturity period of one year.

(b) Maturities of financial liabilities

The table below provides details regarding the remaining contractual maturities of financial liabilities
at the reporting date based on contractual undiscounted payments (excluding transaction cost on
borrowings).

(d) Market risk

Market risk is the risk that changes in market prices - such as foreign exchange rates and interest rates - will
affect the Company's income or the value of its holdings of financial instruments. The objective of market risk
management is to manage and control market risk exposures within acceptable parameters, while optimizing
the return.

The Company uses derivatives like forward contracts to manage market risks on account of foreign exchange and
various debt instruments on account of interest rates. All such transactions are carried out within the guidelines
set by the Board of Directors.

(i) Foreign currency risk

The Company is exposed to foreign exchange risk arising from foreign currency transactions, primarily
with respect to the USD and EUR. Foreign exchange risk arises from future commercial transactions and
recognised assets and liabilities denominated in a currency that is not the Company's functional currency
(Rs.). The risk is measured through a forecast of highly probable foreign currency cash flows. The objective
of the hedges is to minimise the volatility of the Rs. cash flows of highly probable forecast transactions
by hedging the foreign exchange inflows on regular basis. The Company also takes help from external
consultants who provide views on the currency rates in volatile foreign exchange markets.

Currency risks related to the principal amounts of the Company's foreign currency payables, have been
partially hedged using forward contracts taken by the Company.

In respect of other monetary assets and liabilities denominated in foreign currencies, the Company's
policy is to ensure that its net exposure is kept to an acceptable level by buying or selling foreign
currencies at spot rates when necessary to address short-term balances.

Exposure to unhedged currency risk

The summary quantitative data about the Company's exposure to unhedged currency risk as reported to
the management of the Company is as follows :

Note No. 54 : Capital Management

The Company manages its capital structure and makes adjustments in light of changes in economic conditions
and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may
adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The primary
objective of the Company's capital management is to maximize the shareholder value. The Company's primary
objective when managing capital is to ensure that it maintains an efficient capital structure and healthy capital
ratios and safeguard the Company's ability to continue as a going concern in order to support its business and
provide maximum returns for shareholders. The Company also proposes to maintain an optimal capital structure
to reduce the cost of capital. No changes were made in the objectives, policies or processes during the year ended
March 31, 2025 and March 31, 2024.

For the purpose of the Company's capital management, capital includes issued capital, share premium and
all other equity reserves. Net debt includes, interest bearing loans and borrowings less cash and short term
deposits. The Company monitors capital and net debt as under:

Note 1 First pari-passu charge on movable and immovable fixed assets (both present and future) located at Nasik,
Maharashtra and second Pari-passu charge on current assets (both present and future).

Note 2 First ranking pari passu charge on all present and future movable and immovable assets of the borrower
at its Nashik site in the state of Maharashtra in India (except the movable and immovable assets of the
borrower pertaining to its global non woven division) as described in detail in the security documents
attached.

Note 3 First pari passu charge over fixed assets of the Company, situated at village Mundegaon at village Mukane,
Igatpuri, District Nasik in the state of Maharashtra "Nasik Plant").

(d) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with

Companies (Restriction on number of layers) Rule, 2017 during the year and in previous year.

(e) A) The Company has not advanced or loaned or invested (either from borrowed funds or share premium or any other

sources or kind of funds) to or in any other persons or entities, including foreign entities ("Intermediaries"),
with the understanding, whether recorded in writing or otherwise, that the Intermediaries 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 during the year and in previous year;

B) The Company has not received any funds from any person or entity, including foreign entities ("Funding
Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether,
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 provide any guarantee, security or the like on behalf
of the ultimate beneficiaries during the year and in previous year.

(f) The Company has not traded or invested in crypto currency or virtual currency during the year and in previous year.

(g) There was no scheme of arrangement were filed during the current year and previous year.

(h) The Company does not have any transaction, not recorded in the books of accounts that has been surrendered or
disclosed as income during the year and in previous year in the tax assessments under the Income Tax Act, 1961.

(i) The Company is not a Core Investment Company (CIC) as defined in the regulations made by the Reserve Bank of
India. The Group has three CICs as part of the Group.

(j) Borrow'ngs obtained by the Company from banks have been applied for the purposes for which such loans were
taken.

Note No. 62 The financial assets of the Company have been growing on account of accumulated cash flows from its
businesses and on account of the slump sale of its packaging (plastic) films business in the previous year
which have been invested in securities and other financial instruments generating significant income
from these investments which has been included in other income.

Note No. 63 The Company has used accounting software (SAP) for maintaining books of accounts which has the feature
of recording audit trail (edit log) facility however the audit trail facility was not enabled throughout
the year for all relevant transactions recorded in the SAP at application level and also at the database
level. Further, in respect of audit trail the Company has not complied w'th the statutory requirements
for record retention.The audit trail has not been preserved by the Company for the prior years as per the
statutory requirements for records retention.

Note No. 64 The Company has international and specified domestic transactions w'th associated enterprises which
are subject to transfer pricing regulations in India. These regulations inter alia require maintenance of
prescribed information and the documents for the basis of establishing arm's length price including
furnishing a report from an accountant w'thin the due date of filing the return of income.

The Company has undertaken necessary steps to comply w'th the transfer pricing regulations and the
prescribed certificate from the accountant w'll be obtained w'thin the prescribed time-frame. The
management is of the opinion that its international and specified domestic transactions are at arm's
length and hence the aforesaid legislations are not expected to have any impact on the financial
statements, particularly on the amount of tax expenses and that of provision for taxation.

Note No. 65 The Company has given a corporate guarantee in favour of Export Credit Agencies for loans availed by its
subsidiary. The Board of Directors of the subsidiary has approved a revision in the corporate guarantee
fees from 0.75% p.a. to 1.25% p.a. payable to the Company. However, as per the terms of the Shareholders'
Agreement of the subsidiary, the revised fees require the approval of one of the shareholders, which is
currently pending.

As on the reporting date, an amount of Rs 183.22 lakhs pertaining to the revised guarantee fees remains
unaccrued and unpaid by the subsidiary, pending receipt of the necessary shareholder approval. The
subsidiary has informed that it is in the process of obtaining the requisite approvals. The Company w'll
recognise the income in its books upon receipt of such approval and confirmation from the subsidiary.

Note No. 66 The Indian Parliament has approved the Code on Social Security, 2020 which would impact the
contributions by the Company towards Provident Fund and Gratuity. The draft rules for the Code on Social
Security, 2020 have been released by the Ministry of Labour and Employment on November 13, 2020.
The Company is in the process of assessing the additional impact on Provident Fund contributions and
on Gratuity liability contributions and w'll complete their evaluation and give appropriate impact in the
financial statements in the period in which the rules that are notified become effective

As per our report of even date attached For and on behalf of the Board of Directors

For Singhi & Co. Vijender Kumar Singhal Rathi Binod Pal

Chartered Accountants (Whole Time Director & CFO) (Director)

Firm Registration No : 302049E DIN - 09763670 DIN - 00092049

Rishhabh Surana Ashok Yadav

Partner (Company Secretary)

M No :530367 ACS-14223

Date : July 22,2025 Date : July 22,2025

Place: Gurugram Place: Gurugram