3.18 Provisions and Contingencies

Provisions are recognised when the Company has a
present obligation (legal or constructive) as a result
of a past event, and it is probable that an outflow
of resources embodying economic benefits will
be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation.
When the Company expects some or all of a provision
to be reimbursed, for example, under an insurance
contract, the reimbursement is recognised as a
separate asset, but only when the reimbursement is
virtually certain. The expense relating to a provision
is presented in the statement of profit or loss net of
any reimbursement.

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 recognised as a finance cost.

A contingent liability is a possible obligation that
arises from past events whose existence will be
confirmed by the occurrence or non-occurrence of
one or more uncertain future events beyond the
control of the Company or a present obligation that
is not recognised because it is not probable that
an outflow of resources will be required to settle
the obligation. A contingent liability also arises
in extremely rare cases where there is a liability
that cannot be recognised because it cannot be
measured reliably. The Company does not recognize
a contingent liability but discloses its existence in the
Standalone Financial Statements.

Contingent assets are not recognised but disclosed in
the Standalone Financial Statements when an inflow
of economic benefits is probable.

3.19 Segment Reporting

Operating segments are reported in a manner
consistent with the internal reporting provided to
the chief operating decision maker.

3.20 Events after the reporting period

Adjusting events are events that provide further
evidence of conditions that existed at the end of
the reporting period. The financial statements are
adjusted for such events before authorisation for
issue. Non-adjusting events are events that are
indicative of conditions that arose after the end of
the reporting period. Non-adjusting events after the
reporting date are not accounted but disclosed.

3.21 Exceptional Items

An item of income or expense which by its size, type or
incidence requires disclosure in order to improve an
understanding of the performance of the Company
is treated as an exceptional item.

4. SIGNIFICANT ACCOUNTING JUDGEMENTS,
ESTIMATE AND ASSUMPTIONS

The preparation of the Standalone financial
statements requires management to make
judgements, estimates and assumptions about the
reported amounts of assets and liabilities, and,
income and expenses that are not readily apparent
from other sources. Such judgements, estimates
and associated assumptions are evaluated based
on historical experience and various other factors,
including estimation of the effects of uncertain
future events, which are believed to be reasonable
under the circumstances. Actual results may differ
from these estimates. The estimates and underlying
assumptions are reviewed on an on-going basis.
Revisions to accounting estimates are recognised
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 periods if the revision affects
both current and future periods.

The following are the critical judgements and
estimations that have been made by the management
in the process of applying the Company's accounting
policies and that have the most significant effect on
the amount recognised in the financial statements
that may have a significant risk of causing a material
adjustment to the carrying amounts of assets and
liabilities within the next financial year.

4.1 Revenue recognition

The Company assesses its revenue arrangement in
order to determine if its business partner is acting as
a principle or as an agent by analysing whether the
Company has primary obligation for pricing latitude
and exposure to credit / inventory risk associated
with the sale of goods. The Company has concluded
that certain arrangements are on principal to agent
basis where its business partner is acting as an
agent. Hence, sale of goods to its business partner is
recognised once they are sold to the end customer.

4.2 Provision for discount and sales return

a) The Company provides for sales return based on
season wise, brand wise and channel wise trend
of previous years. The Company reviews the trend
at regular intervals to ensure the applicability of
the same in the changing scenario. Provision is
created based on the management's assessment of
market conditions.

b) At each balance sheet date, management estimates
the adequacy of provision for discounts to be given
to its customers on the sales made by the Company
on the basis of historical trend, past experience and
discount policies.

4.3 Allowance for expected credit loss on trade
receivables

Trade receivables do not carry any interest and
are stated at their nominal value as reduced by
appropriate allowances for estimated irrecoverable
amounts. Estimated irrecoverable amounts are
calculated using simplified 12 months ECL approach
based on the ageing of the receivable balance and
historical experience. Additionally, a large number
of minor receivables is Grouped into homogeneous
Groups and assessed for impairment collectively.
Individual trade receivables are written off when
management deems them not to be collectible. Refer
Note 7 (b) for further details.

4.4 Share-based payments

The Company initially measures the cost of equity-
settled transactions with employees using a
binomial model to determine the fair value of the
liability incurred. Estimating fair value for share-
based payment transactions requires determination
of the most appropriate valuation model, which
is dependent on the terms and conditions of the
grant. This estimate also requires determination of
the most appropriate inputs to the valuation model
including the expected life of the share option,
volatility and dividend yield and making assumptions
about them. For equity-settled share-based payment
transactions, the liability needs to be measured at the
time of grant. The expenses recognised for share-
based payment transactions are disclosed in Note 32.

4.5 Taxes

Deferred tax assets are recognised for unused tax
credits to the extent that it is probable that taxable

profit will be available against which the losses can
be utilised. 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.

The Company has taxable temporary difference
and tax planning opportunities available that could
partly support the recognition of these credits as
deferred tax assets. On this basis, the Company has
determined that it can recognise deferred tax assets
on the tax credits carried forward and unused losses
carried forward.

Further details on taxes are disclosed in Note 24.

4.6 Inventories

An inventory provision is recognised for cases
where the realisable value is estimated to be lower
than the inventory carrying value. The inventory
provision is estimated taking into account various
factors, including prevailing sales prices of inventory
item, the seasonality of the item's sales profile
and losses associated with obsolete / slow-moving
inventory items.

4.7 Provisions and contingencies

The assessments undertaken in recognising
provisions and contingencies have been made in

accordance with the applicable Ind AS. A provision is
recognized if, as a result of a past event, the Company
has a present legal or constructive obligation that
can be estimated reliably, and it is probable that
an outflow of economic benefits will be required to
settle the obligation. Where the effect of time value
of money is material, provisions are determined by
discounting the expected future cash flows.

The Company has capital commitments in relation to
various capital projects which are not recognized on
the balance sheet. In the normal course of business,
contingent liabilities may arise from litigation and
other claims against the Company.

Although there can be no assurance regarding the
final outcome of the legal proceedings in which
the Company involved, it is not expected that such
contingencies will have a material effect on its
financial position or profitability (Refer Note 25).

4.8 Control over subsidiaries

The Company evaluates its control over the entities
where it holds significant voting rights and considers
them as Subsidiaries where it exercises control (Refer
note 7a).

Note 3: The Company has pledged 4,63,51,265 equity shares of Arvind Lifestyle Brands Limited as a security against
working capital loans availed by the Company and Arvind Lifestyle Brands Limited.

The Company has pledged 4,05,75,090 equity shares of Arvind Youth Brands Retail Private Limited as a security against
working capital loans availed by the Company.(Refer Note 13(a)).

Note 4: The Company has complied with the requirement with respect to number of layers prescribed under section
2(87) of the Companies Act, 2013 read with the Companies (Restriction on number of layers) Rules, 2017.

Note 5: Investment in Perpetual Non Convertible Debentures / Perpetual Debt is redeemable / Payable at issuer's option
and can be deferred indefinitely.

Note 6 :The carrying amounts of long-term investments in equity shares and perpetual debt of subsidiary companies viz.
Arvind Lifestyle Brands Limited ("ALBL") and Arvind Youth Brands Private Limited ("AYBPL") aggregates to ' 1871.51 crore,
indirect investment from ALBL in AYBPL by ' 68.16 crores as at March 31,2025. The said individual subsidiary companies
have erosion in net worth as compared to investment made by the Company as at March 31,2025. The Company has
determined the recoverable amounts to be higher of (i) value in use and (ii) fair value less cost to sell as applicable.

The value in use has been determined based on management's best estimates, which require the application of significant
judgment. These estimates involve forecasting future cash flows, primarily relating to revenue growth, profitability,
terminal growth rate, and discount rates. Furthermore, the Company applies sensitivity analysis to key inputs to ensure
the value in use reflects potential variability in future cash flows.

Fair value less cost to sell, wherever applicable, has been determined using the Comparable Companies Multiple (CCM)
approach, as evaluated by the Company with the assistance of an external valuation expert. On evaluation of the
aforesaid factors, the Company has concluded that no provision for impairment in respect of such investments are
considered necessary at this stage.

Note 7 : Company has considered PVH Arvind Fashion Limited as a subsidiary even though the company has 50%
ownership interest in the entity. Based upon the contractual agreement between the company and other investor, the
company has power to appoint the chairman who has a voting right, of the board of directors and has the power to
direct the relevant activities.Therefore,the directors of the company concluded that they have the practical ability to
direct the power to affect the relevant activities and thus,criteria for effective control are fulfilled.

Notes :

1. Balance with Government Authorities mainly consist of input tax credit availed.

2. Other current assets are given as security for borrowings as disclosed under Note 13(a).

3. Returnable Asset are recognised pursuant to Ind AS 115 - Revenue from Contracts with Customers and are accounted,
considereing the nature of inventory, ageing and net realisable value. Accordingly ' 8.17 Crores (March 31, 2024
' 9.58 Crores) has been provided. The changes in write downs are recognised as an expense in the Statement of
profit & loss.

4. No advances are due from directors or promoters of the Company either severally or jointly with any person.

5. Other current assets represents Goods and Service Tax paid on refund liability component.

11.2. Rights, Preferences and Restrictions attached to the equity shares :

The Company has one class of shares referred to as equity shares having a par value of ' 4 each. Each shareholder
is entitled to one vote per share held. The dividend proposed by the Board of Directors is subject to the approval
of the shareholders in the ensuing Annual General Meeting (Refer Note-42). In the event of liquidation, the equity
shareholders are eligible to receive the remaining assets after distribution of all preferential amounts, in proportion to
their shareholding.However no such preferential amount exists currently.The distribution will be in proportion to the
number of equity shares held by shareholders.

11.5. Issue of Equity Shares on preferential basis

On August 21,2021 the Board of Directors approved issuance of equity shares on a preferential basis to various investors.
The Company received the approval of shareholders in the extra ordinary general meeting held on September 16, 2021.
The Board of Directors approved allotment of 1,83,06,624 fully paid equity shares to various investors at ' 218.50 per
equity share (of which ' 4/- is towards face value and ' 214.50/- towards premium) on receipt of consideration. There
has been no deviation in the use of proceeds of the Preferential Issue, from the Objects stated in the Offer Letter.

11.6. Issue of Shares under Right Issue

On June 21, 2020, the Board of Directors of the Company had approved the revised size of Rights Issue of 3,99,79,347
shares of face value of ' 4 each (the "Rights Issue Shares") at a price of ' 100 per Rights Equity Shares (including premium
of ' 96 per Rights Equity Share) in the ratio of 62:91, i.e. 62 Rights Equity Shares for every 91 existing Equity Shares held
by the eligible equity shareholders on the record date, i.e. March 18, 2020. On July 24, 2020, the Company has approved
the allotment of 3,99,79,347 equity shares of face value ' 4/- each to the eligible equity shareholders as fully paid up.

On February 03, 2021, the Board of Directors of the Company and subsequently on February 18, 2021, the Committee
of Directors had approved the Rights Issue of 1,48,02,856 equity shares of face value of ' 4 each (the "Rights Issue
Shares") at a price of ' 135 per Rights Equity Shares (including premium of ' 131 per Rights Equity Share) in the ratio
of 3:20, i.e. 3 Rights Equity Shares for every 20 existing Equity Shares held by the eligible equity shareholders on the
record date, i.e. February 24, 2021. On March 25, 2021, the Company has approved the allotment of 1,48,01,776 equity
shares of face value ' 4/- each to the eligible equity shareholders as partly paid up for an amount of ' 70/- per Rights
Issue Share received on application (of which ' 2/- was towards face value and ' 68/- towards premium). The allotment
of 1,080 Rights Equity Shares has been kept in abeyance pending regulatory/other clearance. The third reminder to pay
first and final call of ' 65/- was made in the month of August 2022 and the company has received ' 17,01,440/- against
26,176 equity shares (of which ' 2/- was towards face value and ' 63/- towards premium). As on date the First and Final
call payment for 24,689 shares amounting to ' 0.16 Crores is yet to be received.

11.7. Shares reserved for issue under options and contracts :

Refer Note 32 for details of shares to be issued under Employee Stock Option Schemes (ESOPs)

11.8. Objective, policy and procedure of capital management:

Refer Note 38.

a. Capital reserve

Capital reserve represents capital reserve on amalgamation/business combination. This reserve arose pursuant
to scheme of arrangement and shall not be considered to be reserve created by the Company.

b. Securities premium

Securities premium is created due to premium on issue of shares. This reserve is utilised in accordance with the
provisions of the Companies Act.

c. Share based payment reserve

This reserve relates to share options granted by the Company to its employees (including Subsidiary Companies)
and erstwhile Holding Company's employee share option plan. Further information about share-based payments
to employees is set out in Note 32.

1) During the previous year ended March 31,2024, the company had entered into Share Purchase Agreement (SPA)
with Reliance Beauty & Personal Care Limited to sell and transfer entire equity stake held by the company in
Arvind Beauty Brands Retail Limited (ABBRL) (now known as Reliance Luxe Beauty Limited), at an enterprise value
of ' 212.79 Crores (based on adjustments based of closing period balances) towards sale of equity shares and
repayment of loans.

The company had made a provision of ' 1.69 crores towards the ongoing contingent matters related to ABBRL
business prior to transfer date to be borne by the company as per SPA.The Company had made a provision of ' 10
crores as ex-gratia payment to employee who were involved in the sale process.The Company had presented loss
on sale of equity investment and expenditure incurred as an exceptional item in the financial results.

ABBRL ceased to be a subsidiary from November 03, 2023.

(a) Employees of the Company receive benefits from a provident fund, which is a defined contribution plan. The
eligible employees and the company make monthly contributions to the provident fund plan equal to a specified
percentage of the employees' salary.Amounts collected under the provident fund plan are deposited in a government
administered provident fund.The remaining portion is contributed to the government-administered pension fund.
Employees of the Company receive benefits from a government administered provident fund, which is a defined
contribution plan. The Company has no further obligation to the plan beyond its monthly contributions. Such
contributions are accounted for as defined contribution plans and are recognised as employee benefits expenses
when they are due in the Statement of profit and loss.

B Defined Benefit Plans

The Company has following post employment benefits which are in the nature of defined benefit plans:

Gratuity

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees
who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on
retirement/termination is the employees last drawn salary per month computed proportionately for 15 days salary
multiplied for the number of years of service. The Gratuity plan is a Funded plan administered by the Company.

Liabilities with regard to the Gratuity Plan are determined by actuarial valuation, performed by an independent
actuary, at each Balance Sheet date using the projected unit credit method. The Company fully contributes all
ascertained liabilities to the Life Insurance Coporation - Insurance product.

The Company recognizes the net obligation of a defined benefit plan in its Balance Sheet as an asset or liability.
Gains and losses through re-measurements of the net defined benefit liability/(asset) are recognized in other
comprehensive income and are not reclassified to profit or loss in subsequent periods. The actual return of the
portfolio of plan assets, in excess of the yields computed by applying the discount rate used to measure the defined
benefit obligations recognized in other comprehensive income

In presenting the above sensitivity analysis, the present value of defined benefit obligation has been calculated using
the projected unit credit method at the end of reporting period, which is the same as that applied in calculating the
defined benefit obligation liability recognized in the balance sheet. The methods and types of assumptions used
in preparing the sensitivity analysis did not change compared with the previous period.

The company has a Gratuity plan as a part of its employee benefit program.This is a defined benefit scheme that
exposes the company to various risks. Some of the common risks associated with similar schemes are as follows:

Interest Rate Risk: The defined benefit obligation represents the present value of future cash flows expected to
be paid from the plan, calculated using prevailing interest rates.Although changes in interest rates do not impact
the actual cash flows from the scheme, they do not affect the value of the liability (defined benefit obligation) ,
thereby impacting the Company's balance sheet and profit & loss statement.

Investment Risk: Plans funded with assets are exposed to market fluctuations in asset values.The company may
experience these fluctuations impacting its balance sheet and profit & loss statement.

Demographic Risk: When determining the defined benefit scheme, it is assumed that employees will follow certain
patterns of attrition or morality.If the actual trend differ from these assumptions.the company may incur costs
different from those provisioned.

Asset Liability matching strategy

The Company has purchased insurance policy, which is basically a year-on-year cash accumulation plan in which
the interest rate is declared on yearly basis and is guranteed for a period of one year.The insurance company, as
part of the policy rules, makes payment of all gratuity outgoes happening during the year (subject to sufficiacy of
funds under the policy).The policy, thus,mitigates the liquidity risk.However, being a cash accumulation plan,the
duration of assets is shorter compared to the duration of liabilities.Thus , the company is exposed to movement in
interest rates (in particular, the significant fall in interest rates ,which should result in a increase in liability without
corresponding increase in the asset).

C Leave encashment

The Company has a policy on leave encashment which are both accumulating and non-accumulating in nature. The
expected cost of accumulating leave encashment is determined by actuarial valuation performed by an independent
actuary at each Balance Sheet date using projected unit credit method on the additional amount expected to be
paid/availed as a result of the unused entitlement that has accumulated at the Balance Sheet date. Expense on
non-accumulating compensated absences is recognized in the period in which the absences occur.

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

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged
in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and
assumptions were used to estimate the fair values.

The fair value of borrowings and other financial liabilities is calculated by discounting future cash flows using rates
currently available for debts on similar terms, credit risk and remaining maturities.

Fair value hierarchy

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity
instruments that have quoted price. The fair value of all equity instruments which are traded in the stock exchanges is
valued using the closing price as at the reporting period.

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

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level
3. This is the case for unlisted equity securities, contingent consideration and indemnification asset included in level 3.

There are no transfer between level 1, 2 and 3 during the year.

The Company's policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of the
reporting period.

NOTE 37 : FINANCIAL INSTRUMENTS RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company's principal financial liabilities, other than derivatives, comprise borrowings and trade & other payables.
The main purpose of these financial liabilities is to finance the Company's operations and to support its operations. The
Company's principal financial assets include Investments, loans given, trade and other receivables and cash & short-term
deposits that derive directly from its operations.

The Company's activities expose it to market risk, credit risk and liquidity risk. In order to minimise any adverse effects
on the financial performance of the Company, derivative financial instruments, such as foreign exchange forward
contracts, foreign currency option contracts are entered to hedge certain foreign currency exposures. Derivatives are
used exclusively for hedging purposes and not as trading / speculative instruments.

The Company's risk management is carried out by a Treasury department under policies approved by the Board of
directors. Company's treasury identifies, evaluates and hedges financial risks in close co-operation with the Company's
operating units. The board provides written principles for overall risk management, as well as policies covering specific
areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non¬
derivative financial instruments, and investment of excess liquidity.

(a) 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 two types of risk: interest rate risk and currency risk. Financial
instruments affected by market risk include borrowings, deposits, Investments, trade and other receivables, trade
and other payables and derivative financial instruments.

Within the various methodologies to analyse and manage risk, Company has implemented a system based on
"sensitivity analysis" on symmetric basis. This tool enables the risk managers to identify the risk position of the
entities. Sensitivity analysis provides an approximate quantification of the exposure in the event that certain
specified parameters were to be met under a specific set of assumptions. The risk estimates provided here assume:

- a parallel shift of 50-basis points of the interest rate yield curves in all currencies.

- a simultaneous, parallel foreign exchange rates shift in which the INR appreciates / depreciates against all
currencies by 2%

The potential economic impact, due to these assumptions, is based on the occurrence of adverse / inverse market
conditions and reflects estimated changes resulting from the sensitivity analysis. Actual results that are included in
the Statement of profit & loss may differ materially from these estimates due to actual developments in the global
financial markets.

The analyses exclude the impact of movements in market variables on: the carrying values of gratuity, pension and
other post-retirement obligations and provisions.

The following assumption has been made in calculating the sensitivity analyses:

- The sensitivity of the relevant statement of profit or loss item is the effect of the assumed changes in respective
market risks. This is based on the financial assets and financial liabilities held at respective year end including
the effect of hedge accounting.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in the market interest rates. The Company's exposure to the risk of changes in market interest rates
relates primarily to the Company's debt obligations with floating interest rates.

The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and
borrowings. As at March 31,2025, approximately 0.14 % of the Company's Borrowings are at fixed rate of interest
(March 31, 2024: 0.3%)

Interest rate sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion
of loans and borrowings affected, after the impact of hedge accounting. With all other variables held constant, the
Company's profit before tax is affected through the impact on floating rate borrowings, as follows:

Exclusion from this analysis are as follows:

- Fixed rate financial instruments measured at cost : Since a change in interest rate would not change the
carrying amount of this category of instruments, there is no net income impact and they are excluded from
this analysis

- The effect of interest rate changes on future cash flows is excluded from this analysis.

Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of
changes in foreign exchange rates. The Company transacts business in local currency and in foreign currency,
primarily in USD. The Company has obtained foreign currency loans and has foreign currency trade payables and
receivables etc. and is, therefore, exposed to foreign exchange risk. The Company may use forward contracts
or foreign exchange options towards hedging risk resulting from changes and fluctuations in foreign currency
exchange rate.

The Company manages its foreign currency risk by hedging appropriate percentage of its foreign currency exposure,
as approved by Board as per established risk management policy. Details of the hedge & unhedged position of the
Company given in Note 27.

Foreign currency sensitivity

The following tables demonstrate the sensitivity to a reasonably possible change in USD rates to the functional
currency of entity, with all other variables held constant. The impact on the Company's profit before tax is due to
changes in the fair value of monetary assets and liabilities.

Although the financial instruments have not been designated in a hedge relationship, they act as an economic
hedge and will offset the underlying transactions when they occur.

(b) Credit risk

Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer
contract, leading to a financial loss. To manage this, the Group periodically assesses financial reliability of customers
and other counterparties, taking into account the financial condition, current economic trends and analysis of
historical bad debts and ageing of financial assets. Individual risk limits are set and periodically reviewed on
the basis of such information. The Group is exposed to credit risk from its operating activities (primarily trade
receivables) and from its financing activities, including deposits with banks, foreign exchange transactions and
other financial instruments.

Trade receivables

Customer credit risk is managed by each business unit subject to the Company's established policy, procedures
and control relating to customer credit risk management. Trade receivables are non-interest bearing and are
generally on 30 days to 180 days credit term. Credit limits are established for all customers based on internal
rating criteria. Outstanding customer receivables are regularly monitored and any shipments to major customers
are generally covered by letters of credit. The Company has no concentration of credit risk as the customer base
is widely distributed both economically and geographically.

An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a
large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively.
The calculation is based on actual incurred historical data. The maximum exposure to credit risk at the reporting
date is the carrying value of each class of financial assets disclosed in Note 7(b). The Company does not hold
collateral as security. The Company evaluates the concentration of risk with respect to trade receivables as low, as
its customers are located in several jurisdictions and industries and operate in largely independent markets.

Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company's treasury department in
accordance with the Company's policy. Investments of surplus funds are made only with approved counterparties
who meets the minimum threshold requirements under the counterparty risk assessment process. The Company
monitors the ratings, credit spreads and financial strength of its counterparties. Based on its on-going assessment of
counterparty risk, the Company adjusts its exposure to various counterparties. The Company's maximum exposure
to credit risk for the components of the Balance sheet as is the carrying amount as disclosed in Note 37.

(c) Liquidity risk

Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral
obligations without incurring unacceptable losses. The Company's objective is to, at all times maintain optimum
levels of liquidity to meet its cash and collateral requirements. The Company closely monitors its liquidity position
and deploys a robust cash management system. It maintains adequate sources of financing including bilateral
loans, debt and overdraft from both domestic and international banks at an optimised cost. It also enjoys strong
access to domestic capital markets across equity.

Excessive risk concentration

Concentrations arise when a number of counterparties are engaged in similar business activities, or activities in the
same geographical region, or have economic features that would cause their ability to meet contractual obligations
to be similarly affected by changes in economic, political or other conditions. Concentrations indicate the relative
sensitivity of the Company's performance to developments affecting a particular industry.

NOTE 38 : CAPITAL MANAGEMENT

For the purpose of the Company's capital management, capital includes issued equity capital and all other equity
reserves attributable to the equity holders of the Company. The primary objective of the Company's capital management
is to ensure that it maintains an efficient capital structure and healthy capital ratios in order to support its business and
maximise shareholder value.

The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions or
its business requirements to optimise return to our shareholders through continuing growth. To maintain or adjust
the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or
issue new shares. The funding requirements are met through a mixture of equity, internal fund generation and other
non-current borrowings. The Company monitors capital using a gearing ratio, which is net debt divided by total capital
plus net debt. The Company includes within net debt, interest bearing loans and borrowings less cash and short-term
deposits (including other bank balance). The Company is not subject to any externally imposed capital requirements.

In order to achieve this overall objective, the Company's capital management, amongst other things, aims to ensure
that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure
requirements and other ratios. Breaches in meeting the financial covenants would permit the bank to charge penal
interest. There have been no breaches in the financial covenants of any long-term borrowing in the current period as
of March 31, 2025. Accordingly, the management has not created provision for penal interest.

No changes were made in the objectives, policies or processes for managing capital during the years ended March 31,
2025 and March 31, 2024.

Note 39 (a): Additional Regulatory Disclosures as per Schedule III of the Companies Act, 2013

(i) The Company does not have any benami property held in their name. No proceedings have been initiated on or
are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act,
1988 (45 of 1988) and Rules made thereunder.

(ii) The Company has not been declared wilful defaulter by any bank or financial institution or other lender or
government or any government authority.

(iii) The Company has complied with the requirement with respect to number of layers as prescribed under section
2(87) of the Companies Act, 2013 read with the Companies (Restriction on number of layers) Rules, 2017.

(iv) Utilisation of borrowed funds and share premium

I. 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 Parent
Company (Ultimate Beneficiaries) or b) Provide any guarantee, security or the like to or on behalf of the ultimate
beneficiaries

II. 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 to or on behalf
of the ultimate beneficiaries except as mentioned below.

(v) The Company has not invested or traded in Crypto Currency or Virtual Currency during the year.

(vi) The Company has no income surrendered or disclosed as income during the year in tax assessments under the
Income tax Act, 1961 (such as search or survey), that has not been recorded in the books of account.

(vii) The Company does not have any transactions with the companies struck off under section 248 of the Companies
Act, 2013 or section 560 of the Companies Act, 1956.

Note 39(b) : Audit Trail

The Ministry of Corporate Affairs(MCA) has issued a notification(Companies(Accounts) Amendments Rules,2021) which
is effective from April 01,2023, State that every Company which uses accounting software for maintaining its books
of account shall use only such accounting software which has a feature of recording audit trail of each and every
transaction, and further creating an edit log of each change made in the books of account along with the date when
such changes were made and ensuring that the audit trail cannot be disabled.

Further no instance of audit trail feature being tampered with was noted and the audit trail has been preserved by the
company as per the statuatory requirements for record retention for accounting software used by company during
the year.

NOTE 41 : CODE OF SOCIAL SECURITY, 2020

The Parliament of India has approved the Code of Social Security, 2020 (the Code) which may impact the contribution
by the Company towards Provident Fund, Gratuity and ESIC. The Code have been published in the Gazette of India.
However effective date has yet not been notified. The Company will assess the impact of the Code and will record related
impact in the period it becomes effective.

NOTE 42 : EVENTS OCCURRING AFTER THE REPORTING PERIOD

The Company evaluates events and transactions that occur subsequent to the balance sheet date but prior to the
approval of financial statements to determine the necessity for recognition and/or reporting of subsequent events
and transactions in the financial statements. The Board of Directors recommended a final dividend of ' 1.60 per equity
share of face value of ' 4 each, for the financial year ended March 31,2025, subject to the approval of shareholders in
the ensuing Annual General Meeting.

For and on behalf of the board of directors of
Arvind Fashions Limited

Sanjay S. Lalbhai Shailesh Chaturvedi Girdhar Chitlangia Lipi Jha

Chairman & Director Managing Director & CEO Chief Financial Officer Company Secretary

DIN - 00008329 DIN - 03023079

Place: Bengaluru Place: Bengaluru Place: Bengaluru Place: Bengaluru

Date: May 17, 2025 Date: May 17, 2025 Date: May 17, 2025 Date: May 17, 2025