m) Provisions and contingent liabilities:

Provisions are recognised when the Company has a
present obligation (legal or constructive) as a result of
a past event, it is probable that the Company will be
required to settle the obligation, and a reliable estimate
can be made of the amount of the obligation.

The amount recognised as a provision is the best
estimate of the consideration required to settle the

present obligation at the end of the reporting period,
taking into account the risks and uncertainties
surrounding the obligation. When a provision is
measured using the cash flows estimated to settle the
present obligation, its carrying amount is the present
value of those cash flows (when the effect of the time
value of money is material). When discounting is used,
the increase in the provision due to the passage of time
is recognised as a finance cost.

When some or all of the economic benefits required to
settle a provision are expected to be recovered from a
third party, a receivable is recognised as an asset if it
is virtually certain that reimbursement will be received
and the amount of the receivable can be measured
reliably.

A contingent liability is:-

a) a possible obligation that arises from past events
and whose existence will be confirmed only by
the occurrence or non-occurrence of one or more
uncertain future events not wholly within the
control of the entity; or

b) a present obligation that arises from past events
but is not recognised because:-

i) it is not probable that an outflow of resources
embodying economic benefits will be
required to settle the obligation; or

ii) the amount of the obligation cannot be
measured with sufficient reliability.

Contingent liability is disclosed in the case of:

• a present obligation arising from past events,
when it is not probable that an outflow of resources
will be required to settle the obligation;

• a present obligation arising from past events,
when no reliable estimate is possible;

• a possible obligation arising from past events,
unless the probability of outflow of resources is
remote.

A contingent asset is disclosed where an inflow of
economic benefits is probable.

Provisions, contingent liabilities and contingent assets
are reviewed at each balance sheet date.

n) Retirement and other employee benefits:

Post-employment benefits

• Payments to defined contribution benefit plans
are recognised as an expense when employees
have rendered service entitling them to the
contributions. For defined benefit retirement
plans, the cost of providing benefits is determined
using the projected unit credit method, with
actuarial valuations being carried out at the end
of each annual reporting period. Remeasurement,
comprising actuarial gains and losses, the effect
of the changes to the asset ceiling (if applicable)
and the return on plan assets (excluding net
interest), is reflected immediately in the balance
sheet with a charge or credit recognised in other
comprehensive income in the period in which
they occur. Remeasurement recognised in other
comprehensive income is not reclassified to
statement of profit and loss. Past service cost
is recognised in statement of profit and loss in
the period of a plan amendment. Net interest
is calculated by applying the discount rate at
the beginning of the period to the net defined
benefit liability or asset. Defined benefit costs are
categorised as follows:

• Service cost (including current service cost,
past service cost, as well as gains and losses on
curtailments and settlements);

• Net interest expense or income; and

• Re-measurement.

The Company presents the first two components
of defined benefit costs in statement of profit and
loss in the line item "Employee benefits expense”,
and the last component in Other Comprehensive
Income. Curtailment gains and losses are
accounted for as past service costs.

The retirement benefit obligation recognised in
the balance sheet represents the actual deficit
or surplus in the Company's defined benefit
plans. Any surplus resulting from this calculation
is limited to the present value of any economic
benefits available in the form of refunds from the
plans or reductions in future contributions to the
plans.

Terminal benefits

A liability for a termination benefit is recognised at the
earlier of when the entity can no longer withdraw the
offer of the termination benefit and when the entity
recognises any related restructuring costs.

Short-term and other long-term employee benefits

A liability is recognised for benefits accruing
to employees in respect of wages and salaries,
performance incentives and similar benefits other than
compensated absences in the period the related service
is rendered at the undiscounted amount of the benefits
expected to be paid in exchange for that service.

Liabilities recognised in respect of compensated
absences are measured on the basis of actuarial
valuation as on the balance sheet date.

Liabilities recognised in respect of other long-term
employee benefits are measured at the present value
of the estimated future cash outflows expected to be
made by the Company in respect of services provided
by employees up to the reporting date.

o) Earnings per share:

Basic earnings per share is calculated by dividing the
profit/loss attributable to the owners of the Company
by the weighted average number of equity shares
outstanding during the financial year.

Diluted earnings per share adjusts the figure used in
determination of basic earnings per share to take into
account the after income tax effect of interest and other
financing costs associated with dilutive potential equity
shares, and the weighted average number of additional
equity shares that would have been outstanding
assuming the conversion of all dilutive potential equity
shares.

p) Operating segment

Identification of segment - Operating segments are
reported in the manner consistent with the internal
reporting provided to the Chief Operating Decision
Maker (CODM) of the Company.

Segment accounting policies - The Board of Directors
of the Company have been identified as the Chief
Operating Decision Maker (CODM) as defined under
Ind AS 108. CODM reviews overall financial information
of the Company together for performance evaluation
and allocation of resources and does not review any
discrete information to evaluate performance of any
individual product or geography.

The Company prepares its segment information
in conformity with accounting policies adopted for
preparing and presenting the financial statements of
the Company as a whole.

q) Onerous contracts

If the Company has a contract that is onerous, the
present obligation under the contract is recognised and
measured as a provision. However, before a separate
provision for an onerous contract is established, the
Company recognises any impairment loss that has
occurred on assets dedicated to that contract.

An onerous contract is a contract under which the
unavoidable costs (i.e., the costs that the Company
cannot avoid because it has the contract) of meeting
the obligations under the contract exceed the
economic benefits expected to be received under it.
The unavoidable costs under a contract reflect the
least net cost of exiting from the contract, which is the
lower of the cost of fulfilling it and any compensation
or penalties arising from failure to fulfil it. The cost
of fulfilling a contract comprises the costs that relate
directly to the contract (i.e., both incremental costs
and an allocation of costs directly related to contract
activities).

r) Key sources of estimation uncertainty and critical
accounting judgements

In the course of applying the accounting policies, the
Company is required to make judgements, estimates
and assumptions about the carrying amount of
assets and liabilities that are not readily apparent
from other sources. The estimates and associated
assumptions are based on historical experience
and other factors that are considered to be relevant.
Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting estimates
are recognized in the period in which the estimate is
revised if the revision affects only that period, or in the
period of the revision and future period, if the revision
affects current and future periods.

Key sources of estimation uncertainty

a) Useful lives of property, plant and equipment,
intangible assets, investment property and
right-of-use assets

Management reviews the useful lives of property,
plant and equipment at least once a year. Such
lives are dependent upon an assessment of both
the technical lives of the assets and also their
likely economic lives based on various internal
and external factors including relative efficiency
and operating costs. Refer Note 2 and 30 for
further disclosure.

b) Property, plant and equipment, intangible assets
and investment property

Determining whether the property, plant and
equipment are impaired requires an estimate
in the value in use of cash generating units.
It requires to estimate the future cash flows
expected to arise from the cash generating units
and a suitable discount rate in order to calculate
present value. When the present value of the cash
flows are less than carrying value of property,
plant and equipment a material impairment loss
may arise. Refer Note 2 for further disclosure.

c) Impairment of investments in and loan given to
subsidiaries and joint ventures

Determining whether the investments in and
loan given to subsidiaries and joint ventures are
impaired requires an estimate of the value in use
/ recoverable amount of assets. In considering
the value in use / recoverable amount of assets,
the Management have anticipated the future
cash flows, discount rates and other factors of
the underlying businesses/companies. In certain
cases, the Company engages third party qualified
valuers to perform the valuation. The management
works closely with the qualified external valuers
to establish the appropriate valuation techniques
and inputs to the model. Refer Note 5, 6, and 39
for further disclosure.

d) Provisions, liabilities and contingencies

Provisions and liabilities are recognized in the
period when it becomes probable that there will

be a future outflow of funds resulting from past
events that can reasonably be estimated. The
timing of recognition requires application of
judgement to existing facts and circumstances
which may be subject to change.

In the normal course of business, contingent
liabilities may arise from litigation and other
claims against the Company. Potential liabilities
that are possible but not probable of an outflow
of resources embodying economic benefits are
treated as contingent liabilities. Such liabilities
are disclosed in the notes but are not recognized.
Refer Note 37 for further disclosure.

e) Taxes

Deferred tax assets are recognized for unused tax
losses to the extent that it is probable that taxable
profit will be available against which the losses can
be utilized. Significant management judgement is
required to determine the amount of deferred tax
assets that can be recognised, based upon the
likely timing and the level of future taxable profits
together with future tax planning strategies. Refer
Note 8 for further disclosure.

f) Employee benefit plans

The cost of defined benefit gratuity plan and
other post-employment benefits 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.

The mortality rate is based on publicly available
mortality tables for India. Those mortality tables
tend to change only at interval in response to
demographic changes. Future salary increases
and gratuity increases are based on expected
future inflation rates. Refer Note 28 and 41 for
further disclosure.

g) Lease

The application of Ind AS 116 requires Company
to make judgements and estimates that affect
the measurement of right-of-use assets and
liabilities. In determining the lease term, the
Company consider all facts and circumstances
that create an economic incentive to exercise
renewal options (or not exercise termination
options). Assessing whether a contract includes
a lease also requires judgement. Estimates are
required to determine the appropriate discount
rate used to measure lease liabilities.

The Company cannot readily determine the
interest rate implicit in the lease, therefore, it uses
its incremental borrowing rate (IBR) to measure
lease liabilities. The IBR is the rate of interest that
the Company would have to pay to borrow over a
similar term, and with a similar security, the funds
necessary to obtain an asset of a similar value
to the right-of-use asset in a similar economic
environment. The IBR therefore reflects what
the Company 'would have to pay', which requires
estimation when no observable rates are available
or when they need to be adjusted to reflect the
terms and conditions of the lease. The Company
estimates the IBR using observable inputs (such
as market interest rates) when available and is
required to make certain entity-specific estimates.
Refer Note 45 for further disclosure.

h) Recoverability of trade receivables

Judgements are required in assessing the
recoverability of overdue trade receivables and
determining whether a provision against those
receivables is required. Factors considered
include the credit rating of the counterparty, the
amount and timing of anticipated future payments
and any possible actions that can be taken to
mitigate the risk of non-payment. Refer note 11
for further disclosure.

i) Inventories

"Inventories are reviewed on a regular basis
and the Company make allowance for aged
or obsolete inventories and write down to net

realizable value primarily based on historical
trends and management estimates of expected
and future product demand and related pricing.
Inventories are stated at the lower of cost and
net realisable value. Judgements are required
in assessing the expected realisable values of
Inventories. Factors considered includes demand
levels and pricing competition in the industry.
Refer note 10 for further disclosure.

j) Changes in accounting policies and disclosuresNew and amended standards

The Ministry of Corporate Affairs ('MCA')
notifies new standards or amendments to the
existing standards under the Companies (Indian

Accounting Standards) Rules, 2015 as amended
from time to time. For the year ended March 31,
2026, the MCA has notified amendments to (Ind AS
1, Presentation of Financial Statements) and (Ind
AS 7, Statement of Cash Flows and Ind AS 107,
Financial Instruments: Disclosures) amendments
relating to Classification of liabilities as current
or non-current and non-current liabilities with
Covenants and Disclosure of supplier finance
arrangements , applicable to the Company, w.e.f.,
April 1, 2025.

The Company has reviewed the new
pronouncements and based on its evaluation, has
determined that the new pronouncement is not
applicable to the Company.

Note :

In earlier years, the Company had entered into an agreement with the erstwhile promoters to buy land and hold it in
trust on behalf of the Company. Post execution of the sale agreement and conversion of land to 'Non-Agricultural'
purpose, the land will be transferred in the name of the Company. As of March 31, 2026, the advances paid of '18.24
crore (Previous year ' 18.26 crore) are disclosed as part of capital advances. On completion of the process, the land will
be capitalised in the books. Also refer Note 38 for contractual capital commitments.

Asset Reconstruction Company Limited (acting in its capacity as a Trustee of 'JMFARC- March 2018 - Trust'-
(JMFARC)), pursuant to conversion of debt. Accordingly the same has been issued for a consideration other
than cash.

b) During the earlier year, In accordance with the Approved Resolution Plan, 10,827 equity shares belonging to
the erstwhile promoters of the Company stand cancelled and extinguished.

(ii) Shareholders holding more than 5 percent shares in the Company(iii) Rights, preferences and restrictions attached to equity shares

i) The Company has one class of equity shares having a par value of 1 per share. Each holder of equity share is
entitled to one vote per share.

ii) Right to receive dividend as may be approved by the Board of Directors / Annual General Meeting.

iii) The equity shares are not repayable except in the case of a buy-back, reduction of capital or winding up in
terms of the provisions of the Companies Act, 2013.

iv) Every member of the Company holding equity shares has a right to attend the General Meeting of the Company
and has a right to vote in proportion to his share of the paid-up capital of the Company.

v) In the event of liquidation, the equity shareholders are eligible to receive remaining assets of the Company,
after distribution of all preferential amounts, in proportion to their shareholding.

(i) Optionally Convertible Preference Shares :

During the earlier year, as per the Approved Resolution Plan, On February 28, 2020, the Company has issued and
allotted 250,00,00,000 9% Optionally Convertible Preference Shares (OCPS) of ' 1/- each to Reliance Industries
Limited (RIL). (i) RIL is entitled to convert these OCPS into equity shares of the Company (1:1 basis) at any time on or
before 18 months from their date of allotment i.e. February 28, 2020. (ii) if RIL does not convert the OCPS into equity
shares with in the period of 18 months, OCPS shall be redeemed at the end of 10 years from the date of allotment.
(iii) dividend @9% per annum is payable on cumulative basis.

(ii) Non-Convertible Redeemable Preference Shares :

During the earlier year, the Company has issued and allotted 3300,00,00,000 9% Non-Convertible Redeemable
Preference Shares (NCRPS) of ' 1/- each to Reliance Industries Limited (RIL). (i) These NCRPS shall be redeemable
at par at any time at the option of the Company within a period not exceeding 20 years from the date of allotment
i.e. 2 January 2024. (ii) dividend @9% per annum is payable on cumulative basis.

(1) Working capital loans are secured by; (i) first ranking pari-passu charge on the current assets of the Company,
both present and future (ii) second ranking pari-passu charge (after term loan) over the movable fixed assets of the
Company, both present and future. (iii) loan is repayable on demand and carrying interest 7% to 9.5% per annum.

(2) The Company has been sanctioned working capital limits in excess of ' five crores in aggregate from banks during
the year on the basis of security of current assets of the Company. The quarterly returns/statements filed by the
Company with such banks are in agreement with the books of account of the Company.

(3) As at March 31, 2026, the Company had available ' 63.49 crores (Previous Year: ' 154.76 crores) of undrawn
committed borrowing facilities.

(4) The Company has satisfied all the covenants prescribed in the terms of borrowings.

Performance Obligation

The performance obligation is satisfied upon delivery of the goods and payment is generally due within up to 90 days
from delivery. There are no material unsatisfied performance obligation outstanding at the year end.

The performance obligations of the Company are part of contracts that have an original expected duration of less than
one year and accordingly, the Company has applied the practical expedient and opted not to disclose the information
about it's remaining performance obligations in accordance with IND AS 115.

insurance company and has received ' 25 crore in current year hence recognised exceptional gain of ' 18.58 crore
in the current financial year. Further the Company has recognised exceptional gain ' 12.21 crore from sale of such
damaged assets.

b. During previous year, the Company had sold certain Investment properties, leasehold land and building situated at
Mumbai, Pawne and Mahape which resulted into a gain of ' 94.14 crore.

33 The Company has completed all the steps as laid down in the Resolution Plan approved by the National Company Law
Tribunal vide its order dated March 8, 2019. The resolution applicants had obtained joint control over the Company, the
Board of Directors was re-constituted on September 14, 2020, being the closing date in terms of Resolution Plan. The
Company is in the process of restructuring its operations. The Company has incurred a loss of ' 779.81 crore for the year
ended March 31,2026 and has accumulated losses of ' 23,648.21 crore as on that date. It has earned EBITDA of ' 48.14
crore for the year ended March 31, 2026. Considering the cash flow projections of the Company and improved market
conditions and expected growth in textile industry, the financial statements have been prepared on going concern basis.

34 As per Clause 1.2 (xi) of Approved Resolution Plan, the outstanding debt amounting to '17,384.02 crore assigned to
Resolution Applicants shall not carry interest for the first 8 years from the Closing Date (as defined in the Approved
Resolution Plan), hence such debt has been measured at cost. After such period of 8 years, the terms of assigned debt
shall be mutually agreed among the Resolution Applicants and the Company. The Approved Resolution Plan has an
overriding effect on the requirements of Ind AS, as per legal view obtained by the Company in this regard. Hence, had
the Company applied the Ind AS, it would have recognised the assigned debt at its fair value and accordingly recognized
the imputed interest cost over the period of loan in the statement of profit and loss.

35 As on June 2017, the Company had an amount of '11,623.94 crore receivable from trading debtors on account of sale
of fabric ("Outstanding Trading Dues”). As at March 31, 2019, the Company had created full provision against said
receivables by charging it to the statement of profit and loss in earlier years. As per the Approved Resolution Plan, if any
of the trading debtors make payment towards the Outstanding Trading Dues or any person is required to contribute to
the assets of the Company under any legal process against the Outstanding Trading Dues and has contributed the same,
such amounts (net of any income tax payable by the Company on account of such receipt of the Outstanding Trading
Dues) shall be deposited in a designated escrow account ("Escrow Account") to be opened in the name of the Company.
Provided however, nothing contained in the resolution plan shall oblige the Resolution Applicants or the Company to take
steps for recovery of the Outstanding Trading Dues.

Accordingly, the Company has an obligation to deposit into the escrow account any collections received out of the
"Outstanding Trading Dues" or otherwise, as stated above, for the benefit of the Financial Creditors and as a result
therefore, the risk and reward associated with the Outstanding Trading Dues now belong to the Financial Creditors.
Accordingly the Company had derecognised the said outstanding trade receivables and related provisions in the books.
The Company has not received any amounts towards Outstanding Trading Dues in the current year.

36 The Code on Social Security, 2020 ('Code') relating to employee benefits during employment and post employment
benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. Certain
sections of the Code came into effect on May 3, 2023. However, the final rules/interpretation have not yet been issued.
Based on a preliminary assessment, the entity believes the impact of the change will not be significant.

Notes:

1 The Company has issued a letter of comfort to Alok Infrastructure Limited, wholly-owned subsidiary Company in
order to meet its financial obligations. As on March 31, 2026, management has assessed that the possibility of
outflow of resources embodying economic benefits with respect to the letter of comfort issued is remote.

2 Claims / Debts against the Company up to the closing date which are addressed under the NCLT approved resolution
plan are not included in contingent liabilities though many of such claims / debts may be pending for disposal at
various judicial forums. As per clause 3.3.4 of the aforesaid resolution plan, these liabilities stands extinguished.

Accordingly, the management has assessed that the possibility of outflow of resources embodying economic
benefits with respect to such claims / debts is remote.

3 All direct and indirect tax liabilities relating to assessments of earlier year up to the closing date stand extinguished
as per the NCLT approved resolution plan. Further, the implementation of the resolution plan does not have any
effect over claims or receivables owed to the Company. Accordingly, the Company has assessed that any receivables
due to the Company, evaluated based on merits of underlying litigations, from various governmental agencies
continues to subsist.

C. Terms and conditions of transactions with related parties(i) Sales to related parties and concerned balances

Sales are made to related parties on the same terms as applicable to third parties in an arm's length transaction
and in the ordinary course of business. The Company enters into sales transactions with related parties as
per business practice, the Company determines the transaction price considering the amount it expects to be
entitled in exchange of transferring promised goods or services to the customer.

Trade receivables outstanding balances are unsecured and require settlement in cash. No guarantee or other
security has been received against these receivables.

(ii) Purchases of goods and services received from related parties and related balances

Purchases are made / services received (IT Support and related services) from related parties on the same
terms as applicable to third parties in an arm's length transaction and in the ordinary course of business.
Discount for this purpose is mutually negotiated and agreed between transacting parties.

Trade payable outstanding balances are unsecured and require settlement in cash. No guarantee or other
security has been received against these receivables.

(iii) Services rendered to related parties

The Company has entered into contract with related party for rendering of job work services of Polyester. The
Company mutually negotiates and agrees the price and payment terms with the related parties on a fixed price
based on capacity utilisation.

Outstanding balances are unsecured and require settlement in cash. No guarantee or other security has been
provided against these payables.

(iv) Items of Property, Plant and Equipment (PPE) purchased from the related party

During previous year 2024-25, the Company purchased items of PPE from Sintex Industries Limited. The
purchase was made on the same terms as applicable to third parties in an arm's length transaction and in
the ordinary course of business. The Company mutually negotiated and agreed purchase price and payment
terms with Sintex Industries Limited by benchmarking the same to sale transactions with non-related parties
entered into by the counterparty. The amount was fully paid at the reporting date.

(v) Loans given to related parties

During the earlier years (prior to NCLT period), the Company had given loan to its subsidiaries. These loans are
fully provided for except for loan given to Alok Infrastructure Limited. Loan given to Alok Infrastructure Limited
is ' 1,372.99 crore out of which ' 1,178.53 crore is provided, refer note no. 47 and 49. Further, repayment of this
loan was due in the year ended on March 31,2024.

(vi) Loans taken from the related parties

As per the approved resolution plan, outstanding loan as on March 31, 2026 ' 17,384.02 crore is assigned
to Reliance Industries Limited and JMFARC. Further, the Company had issued preference shares worth
' 3,300.00 crore to Reliance Industries Limited to finance partial repayment of term loan and working capital
requirements. Refer note no. 17 and 34 for additional details.

(vii) Guarantees given by related parties

As on the reporting date, the Company has an outstanding term loan amounting to ' 3,453,33 crore from
banks. The loan is secured with charge over the assets of the Company (refer note no. 17). In addition,
Reliance Industries Limited has given a guarantee to the bank against loan obligation of the Company. As
per the Guarantee arrangement, Reliance Industries Limited will be required to make specified payments to
reimburse the bank for the loss incurred if the Company fails to make payment when due in accordance with
the original terms of the loan arrangement. Reliance Industries Limited is entitled to recover losses from
the Company if it needs to make any payment to bank under the guarantee arrangement. The Company has
incurred ' 1.75 crore (Previous year ' 1.75 crore) as commission towards Reliance Industries Limited for the
said guarantee.

(viii) Investment made in subsidiary company and joint ventures

In the previous years (prior to NCLT period), the Company has invested in its subsidiaries and joint ventures.
These investments are fully impaired as on the reporting date. Refer note no. 5 for details of investments.
There are not investments made in current and previous year.

(ix) Investment made by related parties

Refer note 15 and 17. no new investments made during the current year.

(x) Reimbursement of expenses

Alok International Inc. (wholly-owned subsidiary) make certain rent payment on behalf of the Company.
During the year ended March 31, 2026, Company has reimbursed an amount of ' 4.89 crore (March 31, 2025:
' 4.72 crore) in respect of expenses paid by Alok International Inc. on behalf of the Company.

(xi) Compensation to KMP of the Company

The amounts disclosed in the table are the amounts recognised as an expense during the financial year related
to KMP. The amounts do not include expense, if any, recognised toward post-employment benefits and other
long-term benefits of KMP unless actually paid during the year. Such expenses are measured based on an
actuarial valuation. Hence, amounts attributable to KMPs are not separately determinable.

Generally, non-executive directors do not receive any gratuity or post-employment benefits from the Company.
During the year ended March 31, 2026, an amount of ' 0.07 crore was incurred towards sitting fees of
non-independent directors (March 31,2025: ' 0.11 crore).

Note: Potential ordinary shares shall be treated as dilutive when, and only when, their conversion to ordinary shares
would decrease earnings per share or increase loss per share from continuing operations. If the Potential ordinary
shares are anti-dilutive then Basic EPS is considered for Dilutive EPS.

41 Disclosures Pursuant to - “Employee benefits":i) Defined contribution plans:

The Company's contribution to Provident Fund for the year 2025-26 aggregating to ' 8.28 crore (Previous Year:
' 8.99 crore), ' 0.72 crore (Previous Year: ' 0.90 crore) for ESIC has been recognised in the statement of profit and
loss under the head employee benefits expense. (Refer Note 28).

ii) Defined benefit plans:
a) Gratuity Plan:

The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the act, employee who has completed
five years of service is entitled to specific benefit. though the gratuity liability is recognised from the date the
employee commences service, regardless of whether the employee has completed five years of continuous
service. The level of benefits provided depends on the member's length of service and salary at retirement
age.

The Company makes annual contribution to the Employee's Company Gratuity Assurance Scheme, a funded
defined benefit plan for qualifying employees. The Fund invests in the scheme of insurance with the Life
Insurance Corporation of India, IndiaFirst Life Insurance Company Limited, SBI Life Insurance Company
Limited and Canara HSBC Life Insurance Company Limited. The scheme provides for lump-sum payment to
vested employees at retirement, death while in employment or on termination of employment of an amount
equivalent to fifteen day's salary payable for each completed year of service or part thereof in excess of six
months.

The plans typically expose the Company to actuarial risks such as: interest rate risk, longevity risk and salary
risk.

Interest risk : The plan exposes the Company to the risk off all in interest rates. A fall in interest rates will
result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in
the value of the liability.

Longevity Risk : The present value of the defined benefit plan liability is calculated by reference to the best
estimate of the mortality of plan participants both during and after their employment. An increase in the life
expectancy of the plan participants will increase the plan's liability.

Salary risk: The present value of the defined benefit plan is calculated with the assumption of salary increase
rate of plan participants in future. Deviation 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.

The most recent actuarial valuation of the plan assets and the present value of the defined benefit obligation
were carried out at March 31, 2026 by KP Actuaries and Consultants LLP. The present value of the defined
benefit obligation, and the related current service cost and past service cost, were measured using the Project
Unit Credit Method as per Ind AS 19.

The following table sets out the status of the gratuity plan for the year ended March 31,2026 as required under
Ind AS 19.

42 Segment Information:

The Chief Operating Decision Maker (CODM) monitors the operating results at the Company level for the purpose of
making decisions about resource allocation and performance assessment. Accordingly, the Company operates in a
single primary segment namely "Textiles", which constitutes a reportable segment as per Ind AS 108.

43 Capital Management and Financial Management Framework:

The Company being in a working capital intensive industry, its objective is to maintain a strong credit rating, healthy
ratios and establish a capital structure that would maximize the return to stakeholders through optimum mix of debt
and equity.

The Company's capital requirement is mainly to fund its capex, working capital, repayment of principal and interest
on its borrowings. The principal source of funding of the Company has been, and is expected to continue to be, cash
generated from its operations supplemented by funding from bank borrowings and the capital markets. The Company is
not subject to any externally imposed capital requirements.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the
requirements of the financial covenants. The Company monitors capital using a gearing ratio, which is net debt divided
by total capital plus net debt. Since net worth of the Company is negative, debt equity ratio is not calculated.

The key risks associated with day to day operations of the Company and working capital management are given below:

A. Credit Risk:

Credit risk is the risk that counter party will not meet its obligation under a financial instrument or customer
contract leading to a financial loss. The Company is exposed to credit risk mainly from trade receivables and other
financial assets.

i) Trade Receivables:

Trade receivables are typically unsecured and are derived from revenue earned from customers. Credit risk
has 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, the Company uses expected credit loss model to assess
the impairment loss or gain. The Company uses a provision matrix and forward-looking information and an
assessment of the credit risk over the expected life of the financial asset to compute the expected credit loss
allowance for trade receivables. Concentrations of credit risk with respect to trade receivables are limited.

ii) Other Financial Assets & loans

The Company has limited credit risk arising from cash and cash equivalents as the deposits are maintained
with banks and financial institutions with high credit rating. Hence, these are low risk items and the Company
evaluates the recoverability of these financial assets at each reporting date and wherever required, a provision
is created against the same.

The Company had in earlier years given loans to its subsidiaries/a Company in which erstwhile directors were
interested of ' 1,465.99 crore, which are fully provided for in the books. The net exposure of ' 194.46 crore
is with respect of one wholly-owned subsidiary whereby the Company has impaired to the extent of the fair
valuation of the subsidiary's investment properties / inventories.

B. 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 of three types of risks - interest rate risk, currency risk and other
price risk in a fluctuating market environment. Financial instrument affected by market risks includes loans and
borrowings, deposits, derivatives and other financial assets.

i) Currency Risk

The Company's functional currency is Indian Rupees (INR). The Company undertakes transactions denominated
in foreign currencies; consequently, exposure to exchange rate fluctuations arise. Volatility in exchange rates
affects the Company's revenue from export markets and the costs of imports. The Company has exports
and to that extent has a natural hedge as a mitigation measure to cover foreign exchange risk on account of
imports/expenses in foreign currency. The Company hedges its foreign currency risk by entering into forward
contracts.

5% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel
and represents management's assessment of the reasonably possible change in foreign exchange rates. The
sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their
translation at the period end for a 5% change in foreign currency rates. A positive number below indicates an
increase in profit and negative number below indicates a decrease in profit.

Following is the analysis of change in profit where the Indian Rupee strengthens and weakens by 5% against
the relevant currency:

ii) Interest rate risk

a. 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 is exposed to interest rate risk because
funds are borrowed at both fixed and floating interest rates. Interest rate risk is measured by using the
cash flow sensitivity for changes in variable interest rate. The borrowings of the Company are principally
denominated in rupees with a mix of fixed and floating rates of interest. The Company has exposure to
interest rate risk, arising principally on changes in base lending rate. The Company uses a mix of interest
rate sensitive financial instruments to manage the liquidity and fund requirements for its day-to-day
operations. The risk is managed by the Company by maintaining a mix between fixed and floating rate
borrowings.

If interest rates had been 50 basis points higher/lower and all other variables were held constant,
following is the impact on profit. A positive effect is decrease in profit and negative effect is increase in
profit.

iii) Commodity Price Risk

Commodity price risk arises due to fluctuation in prices of raw materials like cotton and yarn. The Company has
a risk management framework aimed at prudently managing the risk arising from the volatility in commodity
prices and freight costs. The Company's commodity risk is managed centrally through well-established
trading operations and control processes.

C. Financial risk management objectives

The Company has a Risk Management Committee established by its Board of Directors for overseeing the Risk
Management Framework and developing and monitoring the Company's risk management policies. The risk
management policies are established to ensure timely identification and evaluation of risks, setting acceptable risk
thresholds, identifying and mapping controls against these risks, monitor the risks and their limits, improve risk
awareness and transparency. Risk management policies and systems are reviewed regularly to reflect changes
in the market conditions and the Company's activities to provide reliable information to the Management and the
Board to evaluate the adequacy of the risk management framework in relation to the risk faced by the Company.

D. Liquidity Risk:

Liquidity risk refers to the risk of financial distress or extraordinary high financing costs arising due to shortage
of liquid funds in a situation where business conditions unexpectedly deteriorate and requiring financing. The
Company requires funds both for short-term operational needs as well as for long-term capital expenditure for
capex. The Company generates sufficient cash flow from operations, which together with the available cash and
cash equivalents provide liquidity in the short-term and long-term. The Company has established an appropriate
liquidity risk management framework for the management of the Company's short, medium and long-term funding
and liquidity management requirements. The Company manages liquidity risk through cash generated from
operations, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash
flows, and by matching the maturity profiles of financial assets and liabilities. As at March 31, 2026, the Company
has undrawn committed borrowing facilities amounting to ' 63.49 crore and the Company expects to avail all the
working capital limits sanctioned to it in FY 26-27.

The following tables detail the Company's remaining contractual maturity for its non-derivative financial liabilities
with agreed repayment periods. The amount disclosed in the tables have been drawn up based on the undiscounted
cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The
contractual maturity is based on the earliest date on which the Company may be required to pay.

Fair value hierarchy

The Company uses the following hierarchy for determining and or disclosing the fair value of financial instrument by
valuation technique: (i) Level 1 — quoted (unadjusted) market prices in active markets for identical assets or liabilities;
(ii) Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is
directly or indirectly observable; (iii) Level 3 — Valuation techniques for which the lowest level input that is significant to
the fair value measurement is unobservable.

There has been no transfers between level 1 & level 2 during the period.

45 Lease Disclosures
Company as a lessee

The Company has entered into lease contracts (from October 1, 2025), for plant and machinery (chiller) with tenure of 5
years with a lock in period of 2 years.

The Company had entered into lease contracts (from October 1, 2022), for factory buildings with tenure of 10 years with
a lock in period of 3 years which expired on September 30, 2025.

Refer note 2 for disclosure relating to right-of-use assets.

Extension and termination option

The lease of building contain termination options exercisable by both the lessor and the lessee after the end of the
non-cancellable contract period. Where practicable, the Company seeks to include termination options in new leases to
provide economic viability. The Company assesses at lease commencement whether it is reasonably certain to exercise
the termination options. The Company reassesses whether it is reasonably certain to exercise the options if there is a
significant event or significant change in circumstances within its control.

Company as a lessor

The Company has entered into leases on its investment property portfolio consisting of certain Residential flats and
commercial buildings (see Note 4). These leases have terms of between 5 and 20 years. All leases include a clause to
enable upward revision of the rental charge on an annual basis according to prevailing market conditions. Rental income
recognised by the Company during the year is ' 0.09 crore (2024-25: ' 0.26 crore). There are no non-cancellable leases.

i6 During the previous year the Board of Directors of the Company in their meeting held on October 14, 2024 has approved
the sell / lease of some of the assets, accordingly; Land of ' 11.74 crore (net block) and Investment properties of ' 1.02
crore transferred to "Assets held for sale” the said assets were disposed off during the current year.

47 The Company had granted interest free loan in earlier years (prior to corporate insolvency resolution process) to a
company which is outstanding as at the year-end amounting to ' 233.32 crores (against which an impairment allowance
of ' 233.32 crores is made). Further, the Company had granted interest free loan in earlier years (prior to the corporate
insolvency resolution process) to its wholly owned subsidiaries ('WOS') which are outstanding as at the year-end
amounting to ' 2,605.66 crores (against which an impairment allowance of ' 2,411.20 crores is made). Based on legal
opinion obtained by the Company, the provisions of Section 186 of the Companies Act, 2013 are not applicable to all such
interest free loans granted under the erstwhile Companies Act, 1956 and by virtue of the resolution plan approved by the
NCLT, any claim from the authorities with respect to the breach / contravention / non-compliance of any applicable law
is abated, settled and extinguished as at the closing date (i.e. September 14, 2020).

48 As per Section 135 of the Companies Act, 2013, a company meeting the applicability threshold, needs to spend at least
2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR)
activities. The areas for CSR activities are eradication of hunger and malnutrition, promoting education, art and culture,
healthcare, destitute care and rehabilitation, environment sustainability, disaster relief and rural development projects.

A CSR committee has been formed by the Company as per the Act. The Company has incurred losses in current and
in previous years, Accordingly, as the average net profit for immediately preceding three financial years is NIL there
are no amounts required to be spend on corporate social responsibility under Section 135 of the Companies Act, 2013.
Consequently, there are no unspent amount on ongoing projects / other than ongoing projects.

49 In the earlier year, on March 22, 2021, the NCLT has passed the order for withdrawal of the corporate insolvency
resolution process for Alok Infrastructure Limited ("AIL'), wholly-owned subsidiary of the Company. Post this, the
subsidiary had also performed a valuation of its investment properties / inventories with the help of external valuation
specialists and accordingly considered impairment in its books in earlier years. AIL do not have significant business
operations and has made a profit of ' 27.28 crore for the year ended March 31, 2026 and has accumulated losses of
' 1,498.75 crore as on March 31, 2026. During the current year, the said subsidiary has also reassessed the valuation
of its investment properties / inventories with the help of external valuation specialist and there is significant change
in the valuation, though the Company has incurred losses during the year and considering valuations of assets of the
Company, the impairment provision of ' 9.60 crore is made during the year and closing provision stands at ' 1,178.53
crore (previous year ' 1,168.93 crore) against gross loan value of ' 1,372.99 crore (previous year ' 1,372.99 crore) is
made as on 31 March 2026 (refer note 6). Further, the aforesaid loan was due for repayment during the previous year
and has not been repaid by AIL.

50 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 person or entity, 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.

Further, 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.

51 The Company has used accounting software for maintaining its books of account which has a feature of recording
audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the
software. Further, there are no instance of audit trail feature being tampered with. Also, Company has preserved the
audit trail details as per the statutory requirements for record retention.

52 Other Disclosure

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

b. The Company has not entered into any transactions with struck off companies during the year.

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

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

e. The Company does not have any such transaction which is not recorded in the books of accounts that has been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such
as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

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

g. The Company has complied with the relevant provisions of the Foreign Exchange Management Act, 1999 (42 of
1999) and the Companies Act for the above transactions and the transactions are not violative of the Prevention of
Money-Laundering Act, 2002 (15 of 2003).

53 The management has evaluated the likely impact of prevailing uncertainties relating to imposition or enhancement of

reciprocal tariffs and believes that there are no material impacts on the financial statements of the Company for the year

ended March 31,2026. However, the management will continue to monitor the situation from the perspective of potential

impact on the operations of the Company.