(f) Provisions

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a
past event, 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. If the effect of the time
value of money is material, provisions are discounted using a current pre-tax rate that reflects, when
appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the
passage of time is recognized as a finance cost.

(g) Contingent Liabilities

Disclosure of contingent liability is made 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 embodying economic benefits will be required to settle or
a reliable estimate of amount cannot be made.

(h) Current Tax and Deferred Tax

The tax expenses for the period comprise of current tax and deferred tax. The Company exercises judgment in
computation of current tax considering the relevant rulings and reassesses the carrying amount of deferred tax
assets at the end of each reporting period

(i) Revenue Recognition

Revenue is recognized upon transfer of control of promised goods to customers in an amount that reflects the
consideration which the Company expects to receive in exchange for those goods. Revenue from the sale of
goods is recognized at the point in time when control is transferred to the customer which is usually on dispatch
/ delivery of goods, based on contracts with the customers. Revenue is measured based on the transaction price,
which is the consideration, adjusted for volume discounts, price concessions, incentives, and returns, if any, as
specified in the contracts with the customers. Revenue excludes taxes collected from customers on behalf of
the government. Accruals for discounts/incentives and returns are estimated (using the most likely method)
based on accumulated experience and underlying schemes and agreements with customers. Due to the short
nature of credit period given to customers, there is no financing component in the contract. Other operating
income is accounted on accrual basis as and when the right to receive arises. Interest income is recognised
using effective interest rate (EIR) method. Dividend income is recognized, when the right to receive the
dividend is established by the reporting date. Insurance claims are accounted for on the basis of claims admitted
and to the extent that there is no uncertainty in receiving the claims.

(j) Financial Instruments

I. Financial Assets

Purchase and sale of Financial Assets are recognized using trade date accounting. Trade receivables that do
not contain a significant financing component are measured at transaction price.

The Company has elected to account for its investments in subsidiaries, associates and joint venture at cost
less impairment loss (if any). All other equity investments are measured at fair value, with value changes
recognized in Statement of Profit and Loss, except for those equity investments for which the Company has
elected to present the value changes in ‘Other Comprehensive Income’. However, dividend on such equity
investments is recognized in Statement of Profit and loss when the Company’s right to receive payment is
established. The investments in preference shares with the right to surplus assets which are in nature of
equity in accordance with Ind AS 32 are treated as separate category of investment and measured at
FVTOCI. Other Financial Assets are generally measured at Fair Value Through Profit or Loss (FVTPL)
except where the Company, based on the business model objectives, measures these at Amortized Cost or
Fair Value Through Other Comprehensive Income (FVTOCI). The Company uses ‘Expected Credit Loss’
(ECL) model, for evaluating impairment of Financial Assets other than those measured at Fair Value
Through Profit or Loss (FVTPL).

Expected Credit Losses are measured through a loss allowance at an amount equal to:

The 12-months expected credit losses (expected credit losses that result from those default events on the
financial instrument that are possible within 12 months after the reporting date); or
Full lifetime expected credit losses (expected credit losses that result from all possible default events over
the life of the financial instrument).

For Trade Receivables, the Company applies ‘simplified approach’ which requires expected lifetime losses
to be recognized from initial recognition of the receivables.

The Company uses historical default rates to determine impairment loss on the portfolio of trade
receivables. At every reporting date these historical default rates are reviewed and changes in the forward¬
looking estimates are analyzed.

For other assets, the Company uses 12-month ECL to provide for impairment loss where there is no
significant increase in credit risk. If there is significant increase in credit risk full lifetime ECL is used.

II. Financial Liabilities

For trade and other payables maturing within one year from the balance sheet date, the carrying amounts
are determined to approximate fair value due to the short maturity of these instruments.

III. Derivative Financial Instruments and Hedge Accounting

The Company uses various derivative financial instruments such as interest rate swaps, currency swaps,
forwards & options and commodity contracts to mitigate the risk of changes in interest rates, exchange rates
and commodity prices. At the inception of a hedge relationship, the Company formally designates and
documents the hedge relationship to which the Company wishes to apply hedge accounting and the risk
management objective and strategy for undertaking the hedge.

Any gains or losses arising from changes in the fair value of derivatives are taken directly to Statement of
Profit and Loss, except for the effective portion of cash flow hedge which is recognized in Other
Comprehensive Income and later to Statement of Profit and Loss when the hedged item affects profit or
loss or is treated as basis adjustment if a hedged forecast transaction subsequently results in the recognition
of a Non-Financial Assets or Non-Financial liability.

Hedges that meet the criteria for hedge accounting are accounted for as follows:

Cash Flow Hedge

The Company designates derivative contracts or non-derivative Financial Assets/ Liabilities as hedging
instruments to mitigate the risk of movement in interest rates and foreign exchange rates for foreign
exchange exposure on highly probable future cash flows attributable to a recognized asset or liability or
forecast cash transactions.

IV. Offsetting

Financial Assets and Financial Liabilities are offset and the net amount is presented in the balance sheet
when, and only when, the Company has a legally enforceable right to set off the amount and it intends,
either to settle them on a net basis or to realize the asset and settle the liability simultaneously.

3. Critical Accounting Judgements and Key Sources of Estimation Uncertainty

The preparation of the Company’s Financial Statements requires management to make judgement, estimates and
assumptions that affect the reported amount of revenue, expenses, assets and liabilities and the accompanying
disclosures. 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 next financial years.

(a) Property Plant and Equipment/ Intangible Assets

Estimates are involved in determining the cost attributable to bringing the assets to the location and condition
necessary for it to be capable of operating in the manner intended by the management. Property, Plant and
Equipment/Intangible Assets are depreciated/ amortized over their estimated useful life, after taking into
account estimated residual value. Management reviews the estimated useful life and residual values of the
assets annually in order to determine the amount of depreciation/ amortization to be recorded during any
reporting period. The useful life and residual values are based on the Company’s historical experience with
similar assets and take into account anticipated technological and future risks. The depreciation/ amortization
for future periods is revised if there are significant changes from previous estimates.

(b) Provisions

The timing of recognition and quantification of the liability (including litigations) requires the application of
judgement to existing facts and circumstances, which can be subject to change. The carrying amounts of
provisions and liabilities are reviewed regularly and revised to take account of changing facts and
circumstances.

(c) Impairment of Financial and Non-Financial Assets

The impairment provisions for Financial Assets are based on assumptions about risk of default and expected
cash loss rates. The Company uses judgement in making these assumptions and selecting the inputs to the
impairment calculation, based on Company’s past history, existing market conditions as well as forward¬
looking estimates at the end of each reporting period. In case of non-financial assets, assessment of
impairment indicators involves consideration of future risks. Further, the Company estimates asset’s
recoverable amount, which is higher of an asset’s or Cash Generating Units (CGU’s) fair value less costs of
disposal and its value in use. In assessing value in use, the estimated future cash flows are discounted to their
present value using pre-tax discount rate that reflects current market assessments of the time value of money
and the risks specific to the asset. In determining fair value less costs of disposal, recent market transactions
are taken into account, if no such transactions can be identified, an appropriate valuation model is used.

(d) Fair Value Measurement

For estimates relating to fair value of financial instruments refer note 39 of financial statements.

Nature and purpose of reserves: -

1. Retained earnings - It represents surplus / accumulated earnings of the Company available for distribution to the shareholders.

* During the current year, the Company identified that certain items of other comprehensive income(Actuarial Gain / (Loss)) were
incorrectly classified under Retained Earnings in the previous financial year. The error has been corrected by restating each of the affected
financial statement line items for the prior year. The adjustment reduced opening retained earnings by Rs. 24.43 Lakhs, representing
Actuarial Gain / (Loss)and increased the Other comprehensive reserve, representing Actuarial Gain / (Loss) under Other Equity by the
same amount.

The accompanying notes are integral part of the Financial Statements.

As per our report of even date attached

* The Company has provided interest-free loans to certain employees for personal purposes. These loans are
unsecured and recoverable in instalments through salary deductions over agreed periods. The aggregate
outstanding balance as at the reporting date is Rs. 14,06,967.84. These loans are considered to be at arm’s
length and do not carry any specific repayment terms beyond internal policy norms.

** During the year, the Company has advanced two loans to Jain Finscap Pvt. Ltd., a registered Non-Banking
Financial Company (NBFC),

Loan 1 Amounting to Rs. 5,00,00,000 having interest rate 13% p.a. is repayable in a single instalment on 3rd
April, 2025 and is secured by the Following

(a) An irrevocable and unconditional Personal Guarantee executed by the Borrower or a third-party guarantor in
favour of the Lender, in a form and manner acceptable to the Lender ("Personal Guarantee Deed");

(b) Post-dated cheques and undated cheques (UDCs) issued by the Borrower to the Lender against the Loan
Amount;

(c) Any additional security or collateral, as may be required by the Lender, to maintain the security margin
envisaged under this Agreement.

Loan 2 Amounting to Rs. 1,50,00,000 having interest rate 18% p.a is repayable as per the mutually agreed
repayment schedule over a longer term The Loan shall be secured by the personal guarantee of the directors of
Jain Finscap Pvt. Ltd. In the event of default, the Lender shall have the right to enforce the personal guarantee
and recover the outstanding Loan Amount from the personal assets of the guarantors. As additional security, the
Borrower shall provide three undated signed cheques at the time of disbursement of the loan

*** The Company has extended an unsecured loan to its subsidiary, KPR Sports and Media Pvt Ltd , which is
repayable on demand and having interest rate 12%. The outstanding balance as at the reporting date is Rs.
83,56,835.

As per the requirements of Ind AS 24 on Related Party Disclosures, this loan is disclosed as a related party
transaction.

(ii) Terms/Rights attached to Equity Shares:

The Company has only one class of shares viz. equity shares having a par value of Re. 1/- each as above. All equity shares,
in present and in future, rank pari passu with the existing equity shares of the Company and each shareholder is entitled
to one vote per share. The Company declares and pays dividend in Indian Rupees. The dividend proposed by the Board
of Directors is subject to the approval of shareholders in the ensuing Annual General Meeting. In the event of liquidation
of the Company, the holders of equity shares will be entitled to receive residual assets of the Company. The distribution
will be in proportion to the number of equity shares held by the shareholders. During the year ended 31 March, 2025, the
amount of Final dividend per share recognised as distribution to equity shareholders is Rs. 0.10 per share.

(v) Bonus shares, Buy back of shares & Other information:

On September 23. 2024 on approval of Board of Directors at their Meeting, the Company has allotted 8,68,94,493 bonus
shares of Re. 1/- each (fully paid up) in the proportion of 1 Bonus Shares for every 3 fully paid up Equity Shares to eligible
shareholders, whose names appeared in the Register of Members as on September 20. 2024, being the record date fixed for
this purpose. in accordance with approval received from the Members through the Postal Ballot on September 11, 2024,
result of which was declared on September 12, 2024. The said Bonus Shares shall rank pari passu in all respects with the
existing Equity Shares of the Company. As a result of the Bonus issue, the paid-up capital of the Company stands increased
to Rs. 34,77,72,501 from Rs. 26,08,78,008. Consequent to the above increase in paid up capital. the earnings per share (Basic
and Diluted) have been adjusted for all periods presented.

Terms of repayment, security and interest are as follows:

** Secured Loans comprise cash credit from State Bank of India is secured by hypothecation of current assets of the
Company including stock of raw material, work in process, finished goods, stores & spares, book debts, all other current
asset and entire plant and machineries of the Company. Interest Rate for the same loan is 10.65% p.a.

** Secured Loans comprise cash credit from State Bank of India is secured by way of collateral security in the form of
industrial non agriculture land together with consturction of factory standing thereon bearing (i) Survey No. 357, Paiki
western side admeasuring about 3901 sq. mt., togather with the construction of factory thereon, of Mouje; Borisana, TA.
Kadi, Dist. Mehsana. (ii) Survey No. 358, Paiki western side admeasuring about 3428 sq. mt., togather with the
construction of factory thereon, of Mouje; Borisana, TA. Kadi, Dist. Mehsana. (iii) Survey No. 417, Paiki western side
admeasuring about 2632 sq. mt., togather with the construction of factory thereon, of Mouje; Borisana, TA. Kadi, Dist.
Mehsana.

** Secured Loans comprise cash credit from State Bank of India is secured by way of Personal Gurantee of Nitinbhai
Govindbhai Patel and Mr. Kushal Nitinbhai Patel.

Note 32

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) Basis the information available with the Company as on the reporting date and as on the date on which financial statements
are approved and authorised for issue, the Company does not have any transactions with the companies struck off. Further,
the Company has not been declared as a wilful defaulter by any Bank / Financial Institution / any other lender.

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

(iv) The Company have not traded or invested in Crypto currency or Virtual currency during the financial year.

(v) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources
or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”)
with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party
identified by or on behalf of the Company (Ultimate Beneficiaries).

(vi) The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall
whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company
(“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(vii) The Company has not 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).

(viii) Immovable Properties owned by the compnay on its name, and further for immovable properties taken on lease, lease
agreements are executed with Lessor.

(ix) Borrowings are secured based on working capital of the Company and hence, the Company is required to submit monthly
financial document such as working capital etc. Further, the borrowings have been utilised for the purpose for which the
same is obtained.The Monthly Returns or the Current Assets Statements filed by the company with the Bank are in the
agreement with the books of accounts, except for the month of December 2024.

(x) 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.

(xi) The Company did not have any scheme of arrangement / amalgamation executed in past wherein the accounting is not in
compliance with the applicable accounting principles.

(xii) 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. However,
the date on which the Code will come in to effect has not been notified. The Company will assess the impact of the Code
when it comes into effect and will record any related impact in the period when the Code becomes effective.

(xiii) The Company has given loan to employees with the terms being repayable on demand or without repayment terms.

(xiv) Contingent liabilities, Capital commitments and Contingent assets as on the reporting dates are Nil.

(xv) Previous years’ figures have been regrouped and rearranged wherever necessary to comply with requirement of Ind AS.

Note 33

SEGMENT REPORTING

The Company is engaged in the business of producing cotton bales and cotton seeds and trading of Kapas, cotton bales and

cotton seeds. The board of directors of the Company allocate resources and assess the performance of the Company, and hence

board of directors are considered as the Chief Operating Decision Maker (CODM). The CODM monitors the operating results

of the business as a one, hence no separate segment need to be disclosed. None of the Company's assets are located out of India.

The Company's revenue is derived from below mentioned geographies:

Note 34
LEASES

During the Year, the Company cancelled its lease agreement for its corporate office (Ground, Second and Third floor) located
at Rannade House, Opp. Sankalp Grace 3, Near Ishan Bunglow, Shilaj, Ahmedabad, Gujarat, 380059. As a result of the lease
termination, the Company recognized a net gain of Rs. 62.92 Lakhs due to the reversal of lease liabilities exceeding the
corresponding right-of-use asset and related costs.

The Company has buildings (Rannade House, 1st Floor) on lease with lease term of 9 Years. Lease contract can be renewed
with mutual consent and they also contains the termination options. Such options are appropriately considered in determination
of the lease term based on the management's judgement. In certain contracts, the Company is restricted from assigning and
subletting the leased assets.

The Company has buildings (Mumbai office) on lease with lease term of 5 Years. Lease contract can be renewed with mutual
consent and they also contains the termination options. Such options are appropriately considered in determination of the lease
term based on the management's judgement. In certain contracts, the Company is restricted from assigning and subletting the
leased assets.

For leases where the lease term is less than 12 months with no purchase option or the underlying leased assets are of low value,
the Company has elected to apply exemption for such leases and accordingly, right of use assets and lease liabilities for these
contracts are not recognised.

A description of methods used for sensitivity analysis and its Limitations:

Sensitivity analysis is performed by varying a single parameter while keeping all the other parameters unchanged. Sensitivity
analysis fails to focus on the interrelationships between underlying parameters. Hence, the results may vary if two or more
variables are changed simultaneously. The method used does not indicate anything about the likelihood of change in any
parameter and the extent of the change, if any.

Note 37

SUBSEQUENT EVENTS

We have exported sesame seeds to Korea agro fisheries and food trade corporation on January 24, 2025 amounting to Rs. 893.63
lakhs. Subsequent to the reporting date and upon arrival at the destination, the buyer identified quality issues with the
consignment. Despite extensive discussions and efforts to resolve the matter, the buyer has ultimately decided to reject the
shipment and return the entire consignment.

As this situation arose from conditions that occurred after the reporting date of March 31, 2025, it has been classified as a non¬
adjusting event in accordance with Ind AS 10 - Events after the Reporting Period.

Accordingly, the financial statements for the year ended March 31, 2025, remain unadjusted in this regard. However, based on
our current assessment, the estimated financial impact of this event is a potential loss of approximately 10% of the transaction
value. The effect of this event will be recognized in the financial statements of the subsequent period.

Valuation Methodology

All financial instruments are initially recognised and subsequently re-measured at fair value as described below:

a) The fair value of investment in quoted Equity Shares, Mutual Funds and, Alternate investment funds is measured at quoted
price or NAV.

b) The fair value of Forward Foreign Exchange contracts is determined using observable forward exchange rates at the balance
sheet date.

B. Financial risk management

The Company’s activities expose it to a variety of financial risks: credit risk, liquidity risk, foreign currency risk and interest
rate risk. The Company’s primary focus is to foresee the unpredictability of financial markets and seek to minimize potential
adverse effects on its financial performance. The primary market risk to the Company is foreign exchange risk. The Company
uses derivative financial instruments to mitigate foreign exchange related risk exposures. It is the Company’s policy that no
trading in derivative for speculative purposes may be undertaken. The Board of Directors reviews and agrees policies for
managing each of these risks, which are summarized below:

Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its
contractual obligations, and arises principally from the Company’s receivables from customers and investment securities. Cred it
risk arises from cash held with banks and financial institutions, as well as credit exposure to clients, including outstanding
accounts receivable and other receivables. The maximum exposure to credit risk is equal to the carrying value of the financial
assets. The objective of managing counterparty credit risk is to prevent losses in financial assets. The Company assesses the
credit quality of the counterparties, taking into account their financial position, past experience and other factors.

Trade and other receivables

The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The
demographics of the customer, including the default risk of the industry and country in which the customer operates, also has
an influence on credit risk assessment. Ratings of customers are periodically monitored. The expected credit loss allowance is
based on the ageing of the days receivables which are past due and the rates derived based on past history of defaults in the
provision matrix.

Other financial assets - investments, cash, derivative assets, loans and security deposits and other bank balances

The Company limits its exposure to credit risk by generally investing in liquid securities and only with counterparties that have
a good credit rating. The Company does not expect any losses from non-performance by these counterparties, and does not have
any significant concentration of exposures to specific industry sectors. Further, the Company maintains its Cash and cash
equivalents and Bank deposits with banks / financial institutions having good reputation, good past track record and high quality
credit rating and also reviews their credit-worthiness on an on-going basis.

Foreign Currency Risk

The Company’s exchange risk arises from its foreign operations, foreign currency revenues and expenses (primarily in U.S.
Dollars). A significant portion of the Company’s revenues are in these foreign currencies, while a significant portion of its costs
are in Indian Rupees. As a result, if the value of the Indian Rupee appreciates relative to these foreign currencies, the Company ’ s
revenues measured in Rupees may decrease. The exchange rate between the Indian Rupee and these foreign currencies has
changed substantially in recent periods and may continue to fluctuate substantially in the future. Consequently, the Company
uses derivative financial instruments, such as foreign exchange forward contracts, to mitigate the risk of changes in foreign
currency exchange rates in respect of its forecasted cash flows and trade receivables. The following table presents foreign
currency risk from non-derivative financial instruments as on reporting dates:

The accompanying notes are integral part of the Financial Statements.

As per our report of even date attached.

For Mistry & Shah LLP For and on behalf of Board of

Chartered Accountants Axita Cotton Limited

FRN: W-100683

Nitinbhai Patel Kushal Patel

Chairman cum Managing Director Managing Director

DIN: 06626646 DIN: 06626639

Malav Shah

Partner Harsh Shah Shyamsunder Panchal

M. No. 117101 Chief Finance Officer Company Secretary

Place: Ahmedabad Place: Ahmedabad

Date:26th May, 2025 Date: 26th May, 2025

UDIN: 25117101BMLWPY5701