1.16 Provisions and contingent liabilities

Provisions are recognized when there is a present
legal or constructive obligation that can be estimated
reliably, as a result of a past event, when 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.

Provisions are reviewed at each reporting date and
adjusted to reflect the current best estimate. If it is no
longer probable that an outflow of economic resources
will be required to settle the obligation, the provisions
are reversed. Where the effect of the time value of
money is material, provisions are discounted using a
current pre-tax rate that reflects, where appropriate,
the risks specific to the liability. When discounting is
used, the increase in the provisions due to the passage
of time is recognized as a finance cost.

Contingent Liabilities

Contingent liabilities are disclosed when there
is a possible obligation arising from past events,
the existence of which will be confirmed only by
the occurrence or non-occurrence of one or more
uncertain future events not wholly within the control
of the Company or a present obligation that arises
from past events where it is either not probable that
an outflow of resources will be required to settle
the obligation or a reliable estimate of the amount
cannot be made.

1.17 Earnings per share

The Company presents basic and diluted earnings
per share ("EPS") data for its ordinary shares. Basic
EPS is calculated by dividing the profit or loss
attributable to ordinary shareholders of the Company
by the weighted average number of ordinary
shares outstanding during the period. Diluted EPS is
determined by adjusting the profit or loss attributable
to ordinary shareholders and the weighted average
number of ordinary shares outstanding for the effects
of all dilutive potential ordinary shares, which includes
all stock options granted to employees.

1.18 Foreign Currency transactions

• Functional and Reporting Currency:

The Company's functional and reporting
currency is Indian National Rupee

• Initial Recognition:

Foreign currency transactions are recorded in the
reporting currency, by applying to the foreign
currency amounts the exchange rate between
the reporting currency and the foreign currency
at the date of the transaction.

• Conversion on reporting date:

Foreign currency monetary items are reported
using the closing rate. Non-monetary items that
are measured in terms ofhistorical cost in a foreign
currency are translated using the exchange rates
at the dates of the initial transactions.

• Exchange Differences:

Exchange difference arising on the settlement
of monetary items or on reporting monetary
items of Company at rates different from those
at which they were initially recorded during the
year or reported in previous financial statements
are recognized as income or as expenses in the
year in which they arise.

1.19 Employee Benefits

• Short-Term Employee Benefits

The undiscounted amount of short-term
employee benefits expected to be paid in
exchange for the services rendered by employees
are recognised as an expense during the period
when the employees render the services.

• Post-Employment Benefits
Defined Contribution Plan

Employer's contribution to Provident Fund/
Employee State Insurance which is in the nature
of defined contribution scheme is expensed off

when the contributions to the respective funds
are due. There are no other obligations other
than the contribution payable to the fund.

Defined Benefit Plan

a. Gratuity and compensated absences

Gratuity and compensated absences are
in the nature of defined benefit obligations.
These are provided based on independent
actuarial valuation on projected unit credit
method made at the end of each reporting
period as per the requirements of Ind AS 19
"Employee Benefits". Actuarial gain/ (loss)
in the valuation are recognized as other
comprehensive income for the period.

1.20 Dividends

Annual dividend distribution to the shareholders
is recognized as a liability in the period in which
the dividend is approved by the shareholders. Any
interim dividend paid is recognized on approval by
Board of Directors. Dividend payable is recognized
directly in equity.

1.21 Recent Accounting Pronouncement

The Company applied for the first time these
amendments of Ind AS 8 , Ind AS 1 and Ind AS 12
and there is no material impact on financials.

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 not notified any new
standards or amendments to the existing standards
applicable to the Company.

b. Terms/ rights attached to equity shares

(i) The company has only one class of equity shares having a face value of H 10 per share.

(ii) Each holder of equity share is entitled to one vote per share.

(iii) The dividends recommended by the Board of Directors if any, are subject to the approval of the shareholders in
the ensuing Annual General Meeting.

(iv) In the event of liquidation of the Company, the equity share holders are entitled to receive the remaining assets
of the Company after distribution of all preferential claims, in proportion to the number of shares held.

fl. fill the installments falling due within 12 months from the date of Balance Sheet have been classified as current

maturities, the aggregate amounts are shown under Short Term Borrowings'.

B. Security Details of Term Loans from Banks

1. The term loan referred at (a)(i & ii) above is secured by mortgage of (present & future) movable and immovable
properties of the company on first charge pari passu & second charge pari passu on the current assets of the
company with existing term lenders and guaranteed by two Directors & Chief Executive of the company in their
personal capacities.

C. Security Details of Term Loans from Others

(i) Vehicle loans are secured by hypothecation of the respective vehicles and guaranteed by one of the directors
of the company.

(ii) Term Loans from Candi Solar in 1 Pvt. Ltd. are secured by hypothecation of Solar Plant acquired and situated at
Spinning Division in fimangallu, Telangana. This Loan is further secured by an unconditional and irrevocable
personal guarantee of Mr Paritosh figarwal (Managing Director ).

21 Trade payables (Contd..)

a. Secured:

(i) Working capital loans from (a) to (d) are secured by hypothecation of stocks of raw materials, yarn, fabric,
stock-in-process, stores and spares and book debts and by a second mortgage over the (present and future)
movable & immovable properties of the company on pari-passu basis and further guaranteed by two Directors &
Chief Executive of the Company in their personal capacities.

b. Export bills are discounted with the banks and the net amount after deducton of discounting charges is received by
the company . Once the bills are realised the same is utilized to settle the outstanding amount with the bank.

c. Its short Term Revolving Loan with a validity of 12 months.

22 Other Financial liabilities (Contd..)

a) The Company has entered into foreign exchange forward contracts with the intention of hedging foreign exchange
risk of Foreign Currency Loan, these contracts are not designated as hedge and are measured at fair value through
profit or loss. Derivative instruments at fair value through profit or loss reflect the negative change in fair value of
those foreign exchange forward contracts that are not designated in hedge relationships, but are, nevertheless,
intended to reduce the level of foreign currency risk for expected payment of Borrowings.

24 Revenue from operations (Contd..)

c) Performance Obligation:

fill sales are made at a point in time and revenue recognised upon satisfaction of the performance obligation which
typically upon dispatch/delivery. The company does not have any remaining performance obligation for sale of
goods or rendering of services which remains unsatisfied as at march 31,2025 and march 31,2024.

d) Disaggregation revenue:

Refer note 33.15 for disaggregated revenue information. The management determines that the segment information
is reported is sufficent to meet the disclosure objectives with respect to disaggregation of revenue under Ind fiS 115
"Revenue from contract with customers".

note:

For the year ended 31 March, 2025

a) Arrears of Workers Wages Rs 106.72 Lakhs

b) Pursuant to a settlement arrived with the Successful Resolution Applicant, ITI/s. Vasavi Realty Private Limited,
in the CIRP (Corporate Insolvency Resolution Process) against Rajvir Industries Limited, an amount of H 25 lakhs
against the Company's claim lodged with Resolution Professional of Rajvir Industries Limited was received and the
national Company Law Appellate Tribunal (nCLAT) has duly taken the same on record and the same is shown as
exceptional item.

c) The Company received H 135.58 Lakhs (including salvage value) Lakhs from the Insurance Company for the claim
lodged against the fire accident in the Denim Division and the same is shown as exceptional item

For the year ended 31 march, 2024

a) Fire Accident

On June 22,2023, there was a fire accident in one of the godowns of Denim Division at Ramtek in Taharastra. There
were no human casualties reported. Evacuation team conducted successful evacuation of persons present in at the
time of fire. After preliminary investigation, it was found that the cause of fire was due to short circuit.

Consequent to the above, during the year ended March 31,2024, the carrying value of inventories of Rs. 393.55 Lakhs
(including expenses incurred and GST reversals) and carrying value of property plant and equipment of Rs. 51.20 Lakhs
has been written off in the statement of profit and loss.

The Company received Rs. 393.95 Lakhs (including salvage value) Lakhs from the Insurance Company for the claim
lodged against the fire accident. Accordingly, the balance unrecoverable amount of Rs. (50.80) Lakhs is shown as an
exceptional loss.

b) Rs. (80.01) Lakhs on account of Interest Paid on Right of Recompense ("ROR") to Banks.

c) Rs. ( 236.93) Lakhs on account of write off of Advance Recoverable form Rajvir Industries.

33.1 Contingent Liabilities and commitments not provided for in respect of: (Contd..)

Other Litigations:

fin order has been received from the office of DGFT, Hyderabad for alleged violation of Target Plus Scheme to
recover H 3807 Lakhs including interest and penalties in FY2010-11. The High Court of Telangana allowed the Writ
Petition filed by the company challenging aforesaid order and that of the appellate authority and directed the
JDGFT to refund H 500 lakhs deposited by the company. The office of JDGFT has filed a Writ Appeal before the
High Court of Telangana against this order which is pending. fi show cause notice on the same issue was issued
by DRI and the Commissioner of Customs & Central Excise, Flagpur has confirmed the same which has been
challenged by the company before CESTfiT, Mumbai, which remanded the matter back to the adjudicating
authority with a direction to reconsider the matter in the light of the High Curt Order. CESTfiT has challenged
the same before Flagpur Bench, ITIumbai High Court Order which is pending. The company has been advised
that no liability is likely to arise under the notice in view of the High Court allowing the Writ Petition filed by the
company and the allegations are unfounded and the company is taking adequate steps to defend itself.

33.3 There was a major fire accident in spinning department of denim division at Ramtek,Flagapur district, Maharashtra
state during January, 2008, in which the Building, Plant & Machinery, Electrical Installations and stocks were totally
damaged. The factory was fully insured under reinstatement policy for fixed assets and under declaration policy
for stocks. The Company's Insurance claim is processed and settled partly. The Company received an amount
of H2,609 lakhs from the Insurance Company including salvage during FY2007-08 & 2008-09. The part claim of
H490 lakhs which is still to be settled by the Insurance Company is shown under Flon-Current Other Financial
Assets as Claims Receivable. The Company's complaint in this matter is pending before national consumer disputes
Redressal commission(FICDRC), new Delhi.

33.4 Other Statutory Information

i) The Company does not have any Benami property, where any proceeding has been initiated or pending against
the Company for holding any Benami property.

ii) The Company does not have any transactions with struck off companies.

iii) Quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in
agreement with the books of accounts.

iv) The Company does not have any 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

v) fis at March 31,2025, the register of charges of the Company as available in records of the Ministry of Corporate
Affairs (MCA) includes charges that were created/modified since the inception of the Company. There are certain
charges which are historic in nature and it involves practical challenges in obtaining no objection certificates
(NOCs) from the charge holders of such charges, despite repayment of the underlying loans. The Company is in the
continuous process of filing the charge satisfaction e-form with MCA, within the timelines,as and when it receives
NOCs from the respective charge holders.

vi) The Company has not revalued its property plant and equipment during the year.

vii) The Company has not been declared as wilful defaulter by any bank or financial institution or other lender

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

ix) No Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the
Companies Act, 2013, during the year.

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

xi) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign
entities (Intermediaries) with the understanding that the Intermediary shall:

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

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

xii) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party)
with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

33.7 Capital Management

The company's capital management is intended to create value for shareholders by facilitating the meeting of long-term
and short-term goals of the company.

The company determines the amount of capital required on the basis of annual operating plans and long-term product
and other strategic investment plans. The funding requirements are met through equity and other long-term/short
term borrowings.

The company's policy is aimed at combination of short term and long-term borrowings. The company monitors the
capital structure on the basis of total debt to equity ratio and maturity profile of the overall debt portfolio of the company.

33.12 non Current Assets Held for sale and discontinued operations

fis required by the Ind RS 105, non Current fissets held for Sale and Discontinued Operations, Some of the fissets of
Spinning & Garment division are lying in Rsset held for sale and the same is expected to be sold during the coming
financial year.

33.13 Financial Instruments

The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at
fair value, grouped into level 1 to level 3 as described below.

Level 1 - Quoted prices in an active market:

This level of hierarchy includes financial assets that are measured by reference to quoted prices (unadjusted) in active
markets for identical assets or liabilities. This category consists of Listed Equity shares.

Level 2 - Valuation techniques with observable inputs:

This level of hierarchy includes financial assets and liabilities, measured using inputs other than quoted prices included
within level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).

Level 3 - Valuation techniques with significant unobservable inputs:

This level of hierarchy includes financial assets and liabilities measured using inputs that are not based on observable
market (unobservable inputs). Fair values are determined in whole or in part, using a 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.

33.14 Financial Risk Management Objectives and Policies

The company is exposed to financial risks arising from its operations and the use of financial instruments. The key
financial risks include interest rate risk, foreign currency risk, market risk, credit risk and liquidity risk. The company has
a risk management policy which not only covers the foreign exchange risks, but also other risks associated with the
financial assets and liabilities such as interest rate risks and credit risks. The risk management framework aims to:

1. Create a stable business planning environment by reducing the impact of currency and interest rate fluctuations on
the company's business plan.

2. Achieve greater predictability to earnings by determining the financial value of the expected earnings in advance.

The following sections provide the details regarding the Company's exposure to the financial risks associated with
financial instruments held in the ordinary course of business and the objectives policies and processes for the management
of these risks.

(i) market Risk:

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market prices. market prices comprise three types of risk, currency rate risk, interest rate risk and other
price risks such as equity risk. Financial instruments affected by market risk include investments in equity shares.

33.14 Financial Risk Management Objectives and Policies (Contd..)

a. Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of the Company and the Company's financial
instruments will fluctuate because of changes in market interest rates. Since the Company has only fixed
interest-bearing debts, exposure to interest rate risk is minimal.

b. Foreign Currency Risk

Currency risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange
rates. Currency risk arises when transactions are denominated in foreign currencies.

The Company has transactional currency exposures arising from goods supplied or received that are
denominated in a currency other than the functional currency. The foreign currencies in which these
transactions are denominated are mainly in US Dollars ($). The Company's trade receivable and trade payable
balances at the end of the reporting period have similar exposures.

The following table demonstrates the sensitivity in the USD to the Indian Rupee with all other variables held
constant. The impact on the company's profit before tax due to changes in the fair value of monetary assets
and liabilities is given below:

c. Other price risk

Other price risk is the risk that the fair value or future cash flows of the Company's financial instruments will
fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk)
whether those changes are caused by factors specific to the individual financial instrument or its issuer or by
factors affecting all similar financial instruments traded in the market.

The Company is exposed to price risk arising mainly from investments in Equity shares recognized at FVTOCI.

(ii) Credit Risk:

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer
contract, leading to a financial loss. The credit risk arises from its operation activity primarily from trade receivable
and from its financial activity. Customer credit risk is controlled by analysis of credit limit and credit worthiness of
the customer on a continuous basis to whom the credit has been granted.

Long outstanding receivable from customer are regularly monitored. The maximum exposure to credit risk at the
reporting date is the carrying value of trade and other receivable.

(iii) Liquidity Risk:

The risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities that are
settled by delivering cash or another financial asset.

33.15 Operating Segments

The company's operating segments are established on the basis of those components of the company that are evaluated
regularly by the Chairman & Managing Director {the Chief Operating Decision Maker as defined in Ind AS 108 - Operating
Segments'), in deciding how to allocate resources and in assessing performance. These have been identified taking into
account nature of products and services, the differing risks and returns and the internal business reporting systems.

The Company's Board has identified the CODM who is responsible for financial decision making and assessing
performance. The company has a single operating segment as the operating results of the company are reviewed on an
overall basis by the CODM.

(c) Information about major customers

Revenue from transactions with a single customer exceed 10% or more of entity revenues - During the year under
report and in the previous year there is no single customer having transactions with the Company's three operating
segments exceeding 10% or more of the entity revenues.

33.16 Leases

fl. The company takes on lease premises (offices/godowns) for operations and storage purposes. Accordingly, the
Company recognizes a right-of-use asset and a lease liability for its leases, if the contract conveys the right to control
the use of an identified asset.

B. The changes in the carrying value of ROU assets for the year ended march 31,2025 are as follows.

33.17 Dues to Micro, Small and Medium Enterprises

The information as required to be disclosed w.r.t. Micro and Small Enterprises under the Micro, Small and Medium
Enterprises Development Act, 2006 (Act) is as given below and the information mentioned under Trade Payable w.r.t.
dues to Micro and Small Enterprises, has been determined to the extent such parties have been identified on the basis of
information available with the Company and relied on by the Auditors :

33.18 Previous Year's figures have been reclassified, wherever necessary so as to conform with those of Current year.

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

for Brahmayya & Co.

Chartered Accountants (E.V.S.V. Sarma) (L. N. Agarwal)

Firm Registration No.: 000513S Company Secretary Chairman & Managing Director

M.NO. A5220 DIN: 00008721

(K Shravan) (S K Agarwal) (Paritosh Agarwal)

Partner Chief Financial Officer Managing Director

Membership No. 215798 M.NO. A200290 DIN: 00008738

Place: Hyderabad (Dhruv Vijai Singh)

Date: 27.05.2025 Director

DIN: 07180749