(y) Provisions, Contingent Liabilities and Contingent
Assets:

Provisions are recognized when the Company has a
present obligation (legal or constructive) as a result of a
past event and it is probable that an outflow of resources,
that can be reliably estimated, will be required to settle such
an obligation.

If the effect of the time value of money is material, provisions
are determined by discounting the expected future cash
flows to net present value using an appropriate pre-tax
discount rate that reflects current market assessments
of the time value of money and, where appropriate, the
risks specific to the liability. Unwinding of the discount is
recognized in the Statement of Profit and Loss as a finance
cost. Provisions are reviewed at each reporting date and are
adjusted to reflect the current best estimate.

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, is disclosed as a contingent liability.
Contingent liabilities are also 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.

Claims against the Company where the possibility of
any outflow of resources in settlement is remote, are not
disclosed as contingent liabilities.

Contingent assets are not recognized in financial statements
since this may result in the recognition of income that may
never be realized. However, when the realization of income
is virtually certain, then the related asset is not a contingent
asset and is recognized.

(z) Investment in Associates

The Company's investment in its associates are carried at
cost net of accumulated impairment loss, if any.

On disposal of the Investment, the difference between the
net disposal proceeds and the carrying amount is charged
or credited to the statement of Profit and Loss.

2(A) CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES
OF ESTIMATION UNCERTAINTY:

The preparation of the Company's financial statements requires
management to make judgements, estimates and assumptions
that affect the reported amounts of revenues, expenses, assets
and liabilities, and the accompanying disclosures, and the
disclosure of contingent liabilities. Uncertainty about these
assumptions and estimates could result in outcomes that require
a material adjustment to the carrying amount of assets or liabilities
affected in future periods.

Key assumptions:

The key assumptions concerning the future and other key
sources of estimation uncertainty at the reporting date, that have
a significant risk of causing a material adjustment to the carrying
amounts of assets and liabilities within the next financial year,
are described below. The Company based its assumptions and
estimates on parameters available when the financial statements
were prepared. Existing circumstances and assumptions about
future developments, however, may change due to market
changes or circumstances arising that are beyond the control
of the Company. Such changes are reflected in the assumptions
when they occur.

(i) Useful Lives of Property, Plant & Equipment and
Intangible Assets:

The Company uses its technical expertise along with
historical and industry trends for determining the economic
life of an asset/component of an asset. The useful lives
are reviewed by management periodically and revised,
if appropriate. In case of a revision, the unamortized
depreciable amount is charged over the remaining useful
life of the assets.

(ii) Fair value measurement of financial instruments:

When the fair values of financial assets and financial
liabilities recorded in the balance sheet cannot be
measured based on quoted prices in active markets, their
fair value is measured using valuation techniques including
the Discounted Cash Flow model. The inputs to these

models are taken from observable markets where possible,
but where this is not feasible, a degree of judgement is
required in establishing fair values. Judgements include
considerations of inputs such as liquidity risk, credit risk and
volatility.

(iii) Defined benefit plans:

The cost of the defined benefit plans gratuity and provident
fund, and the present value of the gratuity and provident
fund obligation are determined using actuarial valuations.
An actuarial valuation involves making various assumptions
that may differ from actual developments in the future.
These include the determination of the discount rate, future
salary increases and mortality rates. Due to the complexities
involved in the valuation and its long-term nature, a defined
benefit obligation is highly sensitive to changes in these
assumptions. All assumptions are reviewed at each
reporting date.

(iv) Recognition and measurement of deferred tax assets
and liabilities:

Deferred tax assets and liabilities are recognized for
deductible temporary differences for which there is
probability of utilization against the future taxable profit.
The Company uses judgement to determine the amount of
deferred tax liability / asset that can be recognized, based
upon the likely timing and the level of future taxable profits
and business developments.

(v) Income Taxes:

The Company calculates income tax expense based on
reported income and estimated exemptions / deduction
likely available to the Company. The Company has applied
the lower income tax rates on income tax expenses and the
deferred tax assets / liabilities.

(vi) Asset held for sale:

The company has used certain judgements and estimates
to determine fair value of asset held for sale. Fair value has
determined on basis of independent external valuation and
quotes from dealer of similar assets.

(vii) Inventory

Valuation of inventories involves a level of subjectivity due
to inherent uncertainties such as volatility in raw material
prices and fluctuations in the prices of finished goods
driven by changes in consumer demand. Given the size
of the inventory balance, the complexities involved, and
the need for judgment in applying assumptions related to
cost and net realizable value, we recognize that inventory
valuation requires careful consideration and is a significant
area of accounting focus for the company.

Notes :

a) Working Capital borrowings are secured by way of hypothecation of Inventories, Book Debts and Receivables, both present and future.

b) Working capital borrowings carried an average interest rate of 8.65% per annum (Previous Year: 9.30% per annum). The Company did not
have any outstanding working capital borrowings as at the reporting date.

c) Working Capital Borrowings are renewed based on contract with bankers.

d) Borrowings obtained by the company from banks have been utilised for the purposes for which such loans were taken.

e) The statements of current assets filed by the company with banks are in agreement with the books of accounts.

36 FINANCIAL RISK MANAGEMENT OBJECTIVES (IND AS 107):

The Company's principal financial liabilities, other than derivatives, comprises of borrowings, lease, trade and other payables. The main purpose
of these financial liabilities is to finance the company's operations. The company's principal financial assets, other than derivatives include trade
and other receivables, deposit with banks, investments and cash and cash equivalents that derive directly from its operations.

The Company's activities expose it to market risk, liquidity risk and credit risk. Company's overall risk management focuses on the unpredictability
of financial markets and seeks to minimise potential adverse effects on the financial performance of the Company. The Company uses derivative
financial instruments, such as foreign exchange forward contracts, to hedge foreign currency risk exposure. Derivatives are used exclusively for
hedging purposes and not as trading or speculative instruments.

The Company has standard operating procedures and investment policy for deployment of surplus liquidity, which allows investment in inter
corporate deposits, fixed deposits, debt securities and mutual fund schemes of debt and debt like categories and restricts the exposure in equity
markets.

Compliances of these policies and principles are reviewed by internal auditors on periodical basis.

The Corporate Treasury team updates the Audit Committee on a quarterly basis to about the implementation of the above policies. It also updates
to the Internal Risk Management Committee of the Company on periodical basis about the various risk to the business and status of various
activities planned to mitigate the risk.

A. Market Risk Management:

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial
instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates,
commodity prices, equity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all
market risk sensitive financial instruments including investments and deposits, foreign currency receivables, payables and borrowings.

1) Foreign Currency Risk: Foreign currency risk is the risk of impact related to fair value or future cash flows of exposure in foreign currency,
which fluctuate due to changes in foreign exchange rates. The Company's exposure to the risk of changes in foreign exchange rates relates
primarily to imports of raw materials and spare parts, capital expenditure and exports.

When a derivative is entered for the purpose of being a hedge, the Company negotiates the terms of those derivatives to match the terms
of the hedged exposure.

The Company evaluates exchange rate exposure arising from foreign currency transactions. The Company follows established risk
management policies and standard operating procedures. It uses derivative instruments like foreign currency forwards to hedge exposure
to foreign currency risk.

Note: If the rate is decreased by 100 bps profit will increase by an equal amount.

Interest rate sensitivity has been calculated assuming the borrowings outstanding at the reporting date have been outstanding for the
entire reporting period.

3) Commodity price risk

Commodity price risk for the Company is mainly related to fluctuations of raw materials prices linked to various external factors, which
can affect the production cost of the Company. Company actively manages inventory and in many cases sale prices are linked to major
raw material prices. Energy costs is also one of the primary costs' drivers, any increase in fuel prices can lead to drop in operating margin.
To manage this risk, the Company enters into long-term supply agreement for power, identifying new sources of supply etc. Additionally,
processes and policies related to such risks are reviewed and managed by senior management on continuous basis.

B. Credit Risk Management:

Credit risk arises when a customer or counterparty does not meet its obligations under a financial instrument or customer contract, leading
to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing/
investing activities, including deposits with banks, mutual fund investments, and investments in debt securities, foreign exchange
transactions and financial guarantees. The Company has two major customers which represents 68% receivables as on 31^st March, 2026
(80% receivables as on 31^st March, 2025) and company is receiving payments from these parties within due dates. Hence, the company has
no significant credit risk related to these parties.

Trade receivables

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

As per simplified approach, the Company makes provision of expected credit losses on trade receivables using a provision matrix to mitigate
the risk of default payments and makes appropriate provision for loss allowance at each reporting date wherever outstanding is for longer
period and involves higher risk.

Investments, Derivative Instruments, Cash and Cash Equivalent and Bank Deposit

Credit Risk on cash and cash equivalent, deposits with the banks/financial institutions, debt securities are generally low as the said deposits
have been made with the banks/financial institutions who have been assigned high credit rating by international and domestic rating
agencies.

Credit Risk on Derivative Instruments are generally low as Company enters into the Derivative Contracts with the reputed Banks and
Financial Institutions.

Investments of surplus funds are made only with approved Financial Institutions/ Counterparty. Investments primarily include investment in
units of mutual funds and high investment grade corporates. These Mutual Funds and Counterparties have low credit risk.

Total non-current and current investments as on 31stMarch, 2026 is ' 49,347 Lacs (31st March,2025 - ' 41,289 Lacs).

C. Liquidity Risk Management:

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at reasonable price. Prudent
liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate
amount of credit facilities to meet obligations when due. The Company's treasury team is responsible for liquidity, funding as well as
settlement management. In addition, processes and policies related to such risks are overseen by senior management. Management
monitors the Company's liquidity position through rolling forecasts based on expected cash flows.

The table below provides details regarding the remaining contractual maturities of financial liabilities and investments at the reporting date
based on contractual undiscounted payments.

36(B)FAIR VALUE MEASUREMENTS (IND AS 113):

The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction
between willing parties, other than in a forced or liquidation sale.

The Company has established the following fair value hierarchy that categorizes the values into 3 levels. The inputs to valuation techniques used
to measure fair value of financial instruments are:

Level 1: This hierarchy uses quoted (unadjusted) prices in active markets for identical assets or liabilities. The fair value of all bonds which are
traded in the stock exchanges is valued using the closing price or dealer quotations as at the reporting date.

Level 2: The fair value of financial instruments that are not traded in an active market (For example traded bonds, over the counter derivatives)
is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on company specific
estimates. The mutual fund units are valued using the closing Net Asset Value. If all significant inputs required to fair value an instrument are
observable, the instrument is included in Level 2.

The management assessed that fair value of cash and bank balances, trade receivables, trade payables, cash credits and other financial assets
and liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

The following methods and assumptions were used to estimate the fair values:

(a) The fair values of the quoted investments/units of mutual fund schemes are based on market price/net asset value at the reporting date.

(b) The fair value of forward foreign exchange contracts is calculated as the present value determined using forward exchange rates and
interest rate curve of the respective currencies.

(c) The fair value of the remaining financial instruments is determined using discounted cash flow analysis or based on the contractual terms.
The discount rates used is based on management estimates.

37 SEGMENT REPORTING (IND AS 108):

The Company is exclusively engaged in the business of synthetic yarn related products primarily in India. As per Ind AS 108 “Operating
Segments", specified under Section 133 of the Companies Act, 2013, there are no reportable operating or geographical segments applicable to
the Company.

38(B)CAPITAL MANAGEMENT (IND AS 1):

The Company's objectives when managing capital are to (a) maximise shareholder value and provide benefits to other stakeholders and (b)
maintain an optimal capital structure to reduce the cost of capital.

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

The Company monitors capital using debt-equity ratio, which is total debt divided by total equity.

(iii) The weighted average incremental borrowing rate of 8.5% p.a. has been applied for measuring the lease liability at the date of initial
application.

(iv) The total cash outflow for leases for year ended March 31, 2026 is ' 86 lacs (March 31, 2025 is ' 86 lacs).

General description of leasing agreements:

Ý Leased assets: Land, Plant & Machinery, Godowns, Offices.

Ý Future lease rentals are determined based on agreed terms.

Ý At the expiry of lease terms, the Company has an option to return the assets or extend the term by giving notice in writing.

Ý Lease agreements are generally cancellable and are renewed by mutual consent on mutually agreed terms

b) Defined Benefit Plans - Gratuity and Provident Fund
Gratuity:

Inherent Risk - The plan is defined benefit in nature which is sponsored by the Company and hence it underwrites all the risks pertaining
to the plan. In particular, this exposes the Company to actuarial risk such as adverse salary growth, change in demographic experience,
inadequate return on underlying plan assets. This may result in an increase in cost of providing these benefits to employees in future. Since
the benefits are lump sum in nature, the plan is not subject to any longevity risks.

The Company operates a gratuity plan which is administered through Life Insurance Corporation and a trust which is administered through
trustees. Every employee is entitled to a minimum benefit equivalent to 15 days salary last drawn for each completed year of service in line
with the provisions of Payment of Gratuity Act, 1972. However, certain employees are entitled to benefit higher than the benefit prescribed
under Payment of Gratuity Act, 1972. The same is payable at the time of separation from the Company or retirement, whichever is earlier or
death in service.

xiii) The estimates of future salary increases considered in actuarial valuation takes into account inflation, seniority, promotion
and other relevant factors.xiv) Asset liability matching strategy:

The money contributed by the Company to Gratuity Fund has to be invested. The trustee have outsourced management of investment
to an Insurance Company. The Insurance Company in turn manage these funds as per mandate provided by the trustees and the asset
allocation which is with in permissible limits prescribed in insurance regulations. Due to restrictions in type of investments that can be held
by the fund it is not possible to explicitly follow asset liability matching strategy. There is no compulsion on the part of company to fully
prefund liability of the plan. The Company fund these benefit based on known liability and Level of underfunding of the plan.

xv) Exceptional Item:

The Government of India has notified the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020
and the Occupational Safety, Health, and Working Conditions Code, 2020 (“ Labour Codes") with effect from 21st November, 2025, which
consolidates 29 existing labour laws. The Labour Codes, amongst other things introduce changes, including a uniform definition of
wages and enhanced benefits relating to leave. The Ministry of Labour & Employment has issued draft Central Rules and FAQs to facilitate
assessment of the financial impact arising from these regulatory changes. In accordance with the guidance issued by the Institute of
Chartered Accountants of India and based on actuarial valuation, the Company has assessed and disclosed the financial Impact of these
changes as “Statutory Impact of New Labour Codes" under Exceptional Items in the financial statements for the year ended 31st March,
2026. The Company has recognized ' 186 Lacs as Statutory Impact of New Labour Codes towards additional Gratuity, classified as past
service cost, primarily due to the revised definition of wages under the Labour Codes. The Company continues to monitor the developments
relating to the Implementation of the Labour Codes and will review the estimates as further clarification and Rules are notified.

Provident Fund:

The Company contributes to a provident fund scheme for eligible employees, which is administered through a trust established by the
Company in accordance with the Employees' Provident Funds and Miscellaneous Provisions Act, 1952. The scheme guarantees interest
at the rates notified by the statutory authorities. Contributions made by the Company and employees, together with accumulated interest
thereon, are payable to employees upon retirement or separation, whichever is earlier, and the benefits vest immediately upon rendering
of service by employee.

In accordance with the rules of the trust, in the event the trust is unable to declare interest at the rate prescribed under Paragraph 60 of the
Employees' Provident Fund Scheme, 1972 due to lower returns on investments or any other reason, the resultant shortfall is required to be
made good by the Company. Accordingly, the provident fund is treated as a defined benefit plan to the extent of the interest rate guarantee.

The Company has obtained an actuarial valuation of the plan. Based on the valuation and underlying assumptions, the plan assets exceed
the present value of the defined benefit obligation as at the reporting date and no contribution shortfall exists. Accordingly, the Company's
liability is restricted to its contributions.

The surplus in the trust is not recognised as an asset in the financial statements, as it is neither refundable to the Company nor available for
set-off against future contributions.

44 OTHER STATUTORY INFORMATION

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

b) 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:

i. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company
(Ultimate Beneficiaries) or

ii. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

c) The company has no transactions with the companies struck off under Companies Act, 2013 during the current year.

d) The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

e) There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax
Act, 1961, that has not been recorded in the books of account.

f) The company has not traded or invested in crypto currency or virtual currency during the current or previous year.

g) There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond the statutory period.

h) The Company have 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

The above amount of contingencies does not include applicable interest, if any. Cash outflows for the above are determinable only on
receipt of judgments pending at various forums / authorities.

(b) Excise Department had issued an order dated 31^st December, 2013 denying the applicability of Notification No. 6/2000 dated 1^st March,
2000 and raised a demand of '22,927 lacs plus interest thereon and penalty equivalent to duty demand amount. In this matter, CESTAT in
its order dated 20^th December 2019, upheld the denial of aforesaid notification and remanded back the matter to Central Excise Department
to redetermine quantum of duty short paid, imposition of equal amount of penalty on redetermined amount of duty demand and applicable
interest. The Commissioner, CGST & Central Excise, Raigad has re-determined assessable value pursuant to order of CESTAT and confirmed
the demand amounting to '730 lacs (as against above demand of '22,927 lacs), interest at appropriate rate on the duty and equal amount
of penalty vide its order dated 8^th September 2020. Against the said order of the Commissioner, CGST & Central Excise, Raigad, Department
has filed an appeal before the Appellate Tribunal.

The Company's appeal in the matter is pending before the hon'ble Supreme Court of India. The Company has deposited the amount of
duty of '730 Lacs under protest. The Company has been advised by legal experts that it has a fair chance of ultimately succeeding in the
matter and accordingly no provision is required to be made in the accounts.

(c) Foreseeable Losses: The Company has a process whereby periodically all long-term contracts are assessed for material foreseeable
losses. At the year end, the Company has reviewed and ensured that adequate provision as required under any law/ applicable accounting
standards for material foreseeable losses on such long-term contracts has been made in the books of account.

(d) Pending litigations: The Company has reviewed its pending litigations and proceedings and has adequately provided for where provisions
are required and disclosed the contingent liabilities where applicable, in its financial statements. The Company does not expect the
outcome of these proceedings to have a materially adverse effect on its financial statements.

46 CAPITAL AND OTHER COMMITMENTS:

(a) Estimated amount of contracts remaining to be executed on capital account, not provided for (net of advances) as on 31^st March, 2026 is '
3,285 Lacs. (31^st March, 2025 - ' 1,044 Lacs).

(b) Other Commitments: The Company has non-cancellable agreements with Gas Utilities Company for purchase of LNG. Under this
agreement, the Company is committed to purchasing certain annual minimum quantity of LNG failing which it will pay the seller for any
shortfall in offtake of LNG based on an agreed formula. The cost of the minimum committed quantity as at 31^st March 2026 for the remaining
period of the contract at current market prices approximates ' 3,305 Lacs (Previous Year ' 5,051 Lacs). Based on the current projection
Company does not expect shortfall in offtake of minimum committed quantity and therefore no material foreseeable losses are expected.

50 REVENUE FROM CONTRACTS (IND AS 115):

The Company is primarily in the business of manufacture, trade and sale of Synthetic Yarn. Sales are made at a point in time and revenue from
contracts with customers is recognized when goods are dispatched and the control over the goods sold is transferred to customers. The
Company does not expect to have any contracts where the period between the transfer of goods and payment by customer exceeds one year.
Hence, the Company does not adjust revenue for the time value of money.

52 ROUNDING OFF: Figures have been rounded off to the nearest ' Lacs. Accordingly, minor differences in totals may arise due to casting/rounding
adjustments.