(b) Provision for income Tax has been made in the Statement of Profit & Loss on the basis of actual tax
liability as per the Income Tax Act, 1961.

2.5 Interest on FDRs is accounted for on accrual basis and the same has been accounted for under the head
other Income. Other Income also includes Rent Received.

2.6 Impairment of Assets:-

A) Financial assets

The company recognizes loss allowances using the expected credit loss (ECL) model for the financial assets
which are not fair valued through profit or loss. Loss allowance for trade receivables with no significant
financing component is measured at an amount equal to lifetime ECL. For all other financial assets,, expected
credit losses are measured at an amount equal to the 12-month ECL, unless there has been a significant
increase in credit risk from initial recognition in which case those are measured at lifetime ECL The amount of
expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to the
amount that is required to be recognised is recognized as an impairment gain or loss in statement of profit or
loss.

B) Impairment of property, plant and equipment and intangible assets

Property, plant and equipment and intangible assets are evaluated for recoverability whenever events or
changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of
impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-
use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely
independent of those from other assets. In such cases, the recoverable amount is determined for the CGU
(Cash Generating unit) to which the asset belongs, ilf such assets are considered to be impaired, the
impairment to be recognized in the statement of profit and loss is measured by the amount by which the
carrying value of the'assets exceeds the estimated recoverable amount of the asset. An impairment loss is
reversed in the statement of profit and. loss if there has been a change in the estimates used to determine the
recoverable amount. The carrying amount of the asset is increased to its revised recoverable amount, provided
that this amount does not exceed the carrying amount that would have been determined (net of any
accumulated depreciation) had no impairment loss been recognized for the asset in prior years.

2.7 Party's balances (under Debtors, Creditors and Advances) as at the yearend are subject to confirmation.
However Company has a perpetual system of reconciling the accounts with its suppliers & customers during
the year.

2.8 In the opinion of the Board, current assets, loans and advances have a value in the ordinary course of
business at least equal to that stated in the Balance Sheet;

2.9 Segment Reporting

The company is operating in single segment. Hence segment reporting as required under IND AS 108
(Operating Segments) is not applicable

2.10 Investments

2.12 Accounting for Taxes

The accounting treatment followed for taxes on income is to provide for Current Tax and Deferred Tax. Current
tax is the aggregate amount of income tax determined to be payable in respect of taxable income for a period.
Deferred Tax is the tax effect on timing differences between taxable income and accounting income that
originate in one period and are capable of reversal in one or more subsequent periods

Deferred Tax liability

As per requirements of the Indian Accounting standard, the company has created deferred tax Assets for the
year which is net off with the deferred tax liability: -

Detail of disclosures as required by Indian Accounting Standard on "Related Party Disclosures" issued by the
Institute of Chartered Accountants of India are as under:-

Related parties with whom transactions have taken place during the year 2024-25. Key
Managerial Personnel:

Mr. Nitin Bhandari, Chairman cum Managing Director Ms.

Shilpa Tiwari, Company Secretary
Mr. Deepak Sharma, CFO

Relatives of Key Managerial Personnel

Mr. Naresh Bhandari (Father of Mr. Nitin Bhandari, Chairman cum Managing Director) Ms. Kusum
Bhandari (Mother of Mr. Nitin Bhandari, Chairman cum Managing Director) Ms. Aditi Bhandari
(Wife of Mr. Nitin Bhandari, Chairman cum Managing Director)

Ms. Nitika Bhandari (Sister of Mr, Nitin Bhandari, Chairman cum Managing Director)

2.16 Actuarial Valuation:

2.16.1 Accounting Policy & Valuation Method

The Gratuity Benefits are classified as Post-Retirement Benefits as per Ind AS 19 and the
accounting policy is outlined as follows.

As per Ind AS 19, the service cost and the net interest cost would be charged to the Profit & Loss account.
Actuarial gains and losses arise due to difference in the actual experience and the assumed parameters and
also due to changes in the assumptions used for valuation. The Company recognizes these
remeasurements in the Other Comprehensive Income (OCI).

2.16.2 Actuarial Valuation Method (Refer Para 67 of Ind AS 19):-

M/S. Kapadia Global Actuaries have used Projected Unit Credit (PUC) method to value the Defined benefit
obligation. Under the PUC method a "projected accrued benefit" is calculated at the beginning of the year
and again at the end of the year for each benefit that will accrue for all active members of the Plan.

The "Projected Unit Credit Method" is based on the Plan’s accrual formula and upon service as of the
beginning or end of the year, but using a member's final compensation, projected to the age at which the
employee is assumed to leave active service. The Plan liability is the actuarial present value of the
"projected accrued benefits" as of the beginning of the vear for active members.

NOTE: For actuarial valuation we have relied on the report issued bvM/S. Kapadia Global Actuaries which Is provided to us by the
Management.

2.17 Leases
(a) Accounting policy
Lessee:

At inception of a contract, the Company assesses whether a contract is, or contain a lease. A contract is, or
contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in
exchange for consideration. To assess whether a contract conveys the right to control the use of an identified
asset, the Company assesses whether:

D The contract involves the use of an identified asset -this may be specified explicitly or implicitly, and should
be physically distinct or represent substantially all of the capacity of a physically distinct asset. If the supplier
has a substantive substitution right, then the asset is not identified;

Q The Company has the right to substantially all of the economic benefits from the use of the asset throughout
the period of use; and

Q The Company has the right to direct the use of the asset. The Company has this right when it has the
decision making rights that are most relevant to changing how and for what purposes the asset is used. In rare
cases where the decision about how and for what purpose the asset is used is predetermined, the Company
has the right to direct the use of the asset if either:

- The Company has the right to operate the asset; or

- The Company designed the asset in a way that predetermines how and for what purposes it will be used.

As a practical expedient, Ind AS 116 permits a lessee not to separate non-lease components, and instead
account for any lease and associated non-lease components as a single arrangement. The Company has not
used this practical expedient. At inception or on reassessment of a contract that contains a lease component,
the Company allocates the consideration in the contract to each lease component on the basis of their relative
stand-alone prices.

The Company recognises a right-of-use asset and a lease liability at the lease commencement date. The right-
of-use asset is initially measured at cost, which comprises of the initial amount of the lease liability adjusted for
any tease payments made at or before the commencement date, plus any initial direct costs incurred and
estimated dilapidation costs, less any lease incentives received. The right-of-use asset is subsequently
amortised using the straight-line method over the shorter of the useful life of the leased asset or the period of
lease. If ownership of the leased asset is automatically transferred at the end of the lease term or the exercise
of a purchase option is reflected in the lease payments^ the right-of-use asset is amortised on a straight-line
basis over the expected useful life of the leased asset.

The lease liability is initially measured at the present value of the lease payments that are not paid at
commencement date, discounted using, the Company's incremental borrowing rate. The lease liability is
measured at amortised cost using the effective interest method. It is re-measured when there is a change in
future lease payments. Lease payments include fixed payments, i.e. amounts expected to be payable by the
Company under residual value guarantee, the exercise price of a purchase option if the Company is reasonably
certain to exercise that option and payment of penalties for terminating the lease if the lease term considered
reflects that the Company shall exercise termination option. The Company also recognises a right of use asset
which comprises of amount of initial measurement of the lease liability, any initial direct cost incurred by the
Company and estimated dilapidation costs.

Payment made towards short term leases (leases for which non-cancellable term is 12 months or lesser) and
low value assets (lease of assets worth less than Rs0.03 crores) are recognised in the statement of Profit and
Loss as rental expenses over the tenor of such leases.

M

r

Lessor:

At the inception of a lease, the lease arrangement is classified as either a finance lease or an operating lease,
based on contractual terms and substance of the lease arrangement. Whenever the terms of the lease transfer
substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All
other leases are classified as operating leases.

Amounts due from lessees under finance leases are recognised as receivables at the amount of the Company's
net investment in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant
periodic rate of return on the Company's net investment outstanding in respect of the leases.

Rental income from operating leases is recognised on a straight-line basis over the term of the relevant lease.
Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of
the leased asset and recognised on a straight-line basis over the lease term.

(b) During the year company has leased certain Factory lands and buildings which have a renewal and/or
purchase option in the normal course of the business. Extension and termination options are included in the
lease. The extension and termination option held are exercisable only by the Company and not by the
respective lessors. The Company assesses at lease commencement whether it is reasonably certain to exercise
the extension or termination option. The Company re-assesses whether it is reasonably certain to exercise
options if there is a significant event or significant change in circumstances within its control. It is recognised
that there is potential for lease term assumptions to change in the future and this will continue to be
monitored by the Company where relevant. The Company's leases mature in financial year 2037-2038. The
weighted average rate applied is 10.75% p.a.

Retirement Benefits:

a Short term benefits

Short term employee benefit are charged off at the undiscounted amount in the year in which the related service is rendered
b Long term Post retirement

Post retirement benefit comprise of provident fund and gratuity which are accounted for as follows; i Provident

fund

This is a defined contribution plan and contribution made to the fund are charged to revenue .The Company has no further obligation for
the future provident fund benefits other than monthly contribution .
ii Gratuity Fund ;

This is a defined contribution plan . The Liability of the company is determined based on the acturial valuation using projected unit credit
method . Acturial gain and losses are recognised in full to the profit & loss; account for the period in which they occur. The retirement
benefit obligation recognised in the Balance sheet represents the present value of the benefit obligation as per Acturial Valuation .

Iii Leave with wages

B. Financial Risk Management

The principal financial assets of the Company include cash, bank balances and trade and other receivables that derive directly from its
operations. The principal financial liabilities of the company include loans and borrowings, trade and other payables and the main
purpose of these financial liabilities is to finance the day to day operations of the company. The Company is exposed to market risk,
credit risk and liquidity risk. The Company's senior management oversees the management of these risks and that advises on financial
risks and the appropriate financial risk governance framework for the Company.

This note explains the risks which the company is exposed to and policies and framework adopted by the company to manage these
risks:

(i) 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 prices comprise three types of risk: foreign currency risk, interest rate risk and investment risk.

a) Foreign currency risk

The fluctuation in foreign currency exchange rates may have potential impact on the income statement, statement of comprehensive income,
balance sheet, statement of changes in equity and statement of cash flows where any transaction references more than one currency or where
assets/liabiiities are denominated in a currency other than the functional currency.

Considering the countries and economic environment in which the Company operates, its operations are subject to risks arising from fluctuations
in exchange rates in those countries. The risks primarily relate to fluctuations in U.S. dollar, Euro and GBP against the respective functional
currencies of the Company.

Please explain how the company manages such risk like through hedging, forward contracts etc. Any weakening of the functional currency may
impact the Company's cost of exports and cost of borrowings and consequently may increase the cost of financing the Company's capital
expenditures.

NOTE 34: - 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 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. Total debt includes all long and short-term debts as disclosed in notes 26 and 27 to the standalone financial statements.

NOTE 35:- The Company has declared Rs. 0.02/- dividend per share having face value of Rs.l/- for the year ended 31^st March, 2024
For Raj Gupta & Company For and on behalf of the Board of Directors of

Chartered Accountants BHANDARI HOSIERY EXPORTSLIMITED

FRN: 009607N

Sd/-

(Sandeep Gupta)

Partner *d/- ^sd/’ ^sd/‘

Membershlp No. 529774

Place: Ludhiana {DeepakSharma) (Shilpa Tiwari) (NItin Bhandari)

Date:30.05.2025 Chief Financial Officer Company Secretary Chairman & Mg.Director

UDIN: 25529774BM1VCK7549 A59374 DIN :01385065