22 Provisions

Accounting Policy

Provisions

Provisions are recognized when there is 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. Provisions are determined by discounting the expected future cash flows (representing the
best estimate of the expenditure required to settle the present obligation at the balance sheet date) at a pre-tax rate that reflects
current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is
recognized as finance cost.

Onerous Contracts

Present obligations arising under onerous contracts are recognized and measured as provisions. An onerous contract is considered
to exist when a contract under which the unavoidable costs of meeting the obligations exceed the economic benefits expected to
be received from it.

23 Trade payables

Accounting Policy

Trade payables represent liabilities for goods and services provided to the Company and are unpaid at the reporting period.
The amounts are unsecured and usually paid within time limits as contracted. Trade and other payables are presented as
current liabilities unless the payment is not due within 12 months after the reporting period. They are recognised initially at their
transactional value which represents the fair value and subsequently measured at amortised cost using the effective interest
method wherever applicable.

26 Revenue from operations

Accounting Policy

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and the revenue can
be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration
received or receivable, taking into account contractually defined terms of payment and excluding taxes or duties collected on behalf
of the Government.

a) Sale of Goods

Sale of goods is recognised at the point in time when control of the goods is transferred to the customer. Revenue towards
satisfaction of a performance obligation is measured at the amount of transaction price (net of variable consideration) allocated to
that performance obligation. The transaction price of goods sold and services rendered is net of variable consideration on account
of various discounts and schemes offered by the company as part of the contract. As the period between the date on which the
company transfers the promised goods to the customer and the date on which the customer pays for these goods is generally one
year or less, no financing components are taken into account.

Certain contracts provide a customer with a right to return the goods within a specified period. The company uses the expected value
method to estimate the goods that will not be returned because this method best predicts the amount of variable consideration to
which the company will be entitled. The requirements in Ind AS 115 on constraining estimates of variable consideration are also
applied in order to determine the amount of variable consideration that can be included in the transaction price for goods that are
expected to be returned instead of revenue the company recognises a refund liability. A right of return asset and corresponding
adjustment to change in inventory is also recognised for the right to recover products from a customer.

b) Sale of Services

In contracts involving the rendering of services, revenue is measured using the completed service method.

c) Other Operating Revenue

Export incentive and subsidies are recognized when there is reasonable assurance that the company will comply with the conditions
and the incentive will be received. Insurance & other claims, where quantum of accruals cannot be ascertained with reasonable
certainty are recognized as income only when revenue is virtually certain which generally coincides with receipt/acceptance.

d) Government Grants

Government grants are recognized at their fair values when there is reasonable assurance that the grants will be received and the
Company will comply with all the attached conditions. When the grant relates to an expense item, it is recognized as income on
a systematic basis over the periods that the related costs, for which it is intended to compensate, are expensed. Grants related
to purchase of property, plant and equipment are included in non-financial liabilities as deferred income and are credited to the
Statement Profit and Loss on a straight line basis over the expected useful life of the related asset and presented within other
operating revenue.

27 Other income

Accounting Policy

Interest Income

For all financial instruments measured at amortized cost, Interest income is recorded using the effective interest rate (EIR). EIR
is the rate that exactly discounts the estimated future cash receipts over the expected life of the financial instrument or a shorter
period, where appropriate, to the gross carrying amount of the financial asset.

30 Employee benefits expense

Accounting Policy

Short Term Benefits

Short term employee benefit obligations are measured on an undiscounted basis and are expensed as the related services are
provided. Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within twelve
months after the end of the period in which the employees render the related service are recognized in respect of employees’
services up to the end of the reporting period.

Post-Employment Benefits

The company operates the following post-employment schemes:

a) Defined Benefit Plans

The liability or asset recognized in the balance Sheet in respect of defined benefit plans is the present value of the defined benefit
obligation at the end of the reporting period less the fair value of plan assets. The company net obligation in respect of defined
benefit plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in the
current and prior periods. The defined benefit obligation is calculated annually by Actuaries using the projected unit credit method.

The liability recognized for defined benefit plans is the present value of the defined benefit obligation at the reporting date less
the fair value of plan assets, together with adjustments for unrecognized actuarial gains or losses and past service costs. The
net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value
of plan assets. The benefits are discounted using the government securities (G-Sec) at the end of the reporting period that have
terms approximating to the terms of related obligation.

Remeasurement of the net defined benefit obligation, which comprise actuarial gains and losses, the return on plan assets
(excluding interest) and the effect of the asset ceiling, are recognized in other comprehensive income. Remeasurement recognized
in other comprehensive income is reflected immediately in retained earnings and will not be reclassified to the statement of Profit
and Loss.

b) Defined Contribution Plan

Defined contribution plans such as provident fund, ESI etc. are charged to the statement of Profit and Loss as and when incurred.

31 Finance costs

Accounting Policy

Finance costs includes costs in relation to pensions and similar obligations, interest on lease liabilities which represents unwinding
of the discount rate applied to lease liabilities and also include interest costs in relation to financial liabilities.

Borrowing Costs consists of interest and other costs that an entity incurs in connection with the borrowings of funds. Borrowing
costs also include exchange difference to the extent regarded as an adjustment to the borrowing costs.

Borrowing costs directly attributable to the acquisition or construction of a qualifying asset are capitalized as a part of the cost of
that asset that necessarily takes a substantial period of time to complete and prepare the asset for its intended use or sale. The
company considers a period of twelve months or more as a substantial period of time.

35 Earnings per share

Accounting Policy

Basic earnings per share is computed by dividing profit or loss for the year attributable to equity holders by the weighted average
number of shares outstanding during the year. Partly paid up shares are included as fully paid equivalents according to the fraction
paid up.

Diluted earnings per share is computed using the weighted average number of shares and dilutive potential shares except where
the result would be anti-dilutive.

b) Defined Benefit Plan

The following are the types of Defined Benefit Plans:

(i) Gratuity Plan

Every employee who has completed five years or more of service is entitled to gratuity on terms not less favourable than the

provisions of The Payment of Gratuity Act, 1972. The present value of defined obligation and related current cost are measured

using the Projected Unit Credit Method with actuarial valuation being carried out at Balance Sheet date.

(ii) Provident Fund

Provident Fund (other than government administered) as per the provisions of the Employees Provident Funds and Miscellaneous

Provisions Act, 1952.

c) Risk Exposure

Defined Benefit Plans

Defined benefit plans expose the Company to actuarial risks such as: Interest rate risk, Salary risk and Demographic risk.

a) Interest rate risk: The defined benefit obligation calculated uses a discount rate based on government bonds. If the bond
yield falls, the defined benefit obligation will tend to increase.

b) Salary risk: Higher than expected increases in salary will increase the defined benefit obligation.

c) Demographic risk: This is the risk of variability of results due to unsystematic nature of decrements that includes mortality
withdrawal disability and retirement. The effect of these decrements on the defined benefits obligations is not straight
forward and depends on the combination of salary increase, discount rate and vesting criteria. It is important not to overstate
withdrawals because in the financial analysis the retirement benefit of the short career employee typically costs less per year
as compared to a long service employee.

37 Corporate Social Responsibility

As per the Companies Act, 2013, the gross amount required to be spent by the Company during the year H 207.22 Lakhs
(March 31, 2025 H 258.08 Lakhs) and amount spent by the company during the year H 210.00 Lakhs (March 31, 2025
H 260.00 Lakhs). Details are as given below:

37.2Excess Spent has not been carried forward.

38 Contingent liabilities

Accounting Policy

Contingent liability is a possible obligation arising from past events and 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 but is not recognized because it is not possible that an outflow of resources embodying
economic benefit will be required to settle the obligations or reliable estimate of the amount of the obligations cannot be made.
The company discloses the existence of contingent liabilities in other Notes to Financial Statements. Contingent assets are neither
recognised nor disclosed in the financial statements.

*Amount of H Nil (March 31, 2025: H Nil) pertaining to Income tax and H 126.67 Lakhs (March 31, 2025: 17.22 Lakhs) pertaining to GST paid under
protest.

#A refund claim of H 11,20,21,074 was filed by the Company on March 28, 2024 under the Inverted Duty Structure category. The refund was
sanctioned and processed by the GST Department and received by the Company.Subsequently, on November 22, 2024, the GST Department filed
and appeal against the refund sanctioned and processed, disputing the amount.

Deputy Commissioner (Appeals) vide order dated 12.03.2026 partly allowed the refund to the tune of H 6,62,92,203 /- in relation to the period
March'22 to March'23 while disallowing balance refund for the period April'21 to February'22 on time bar. The Company has contested the order by
filing an appeal before the Hon'ble GSTAT, Coimbatore on 23.03.2026 and also duly paid the applicable pre deposit without waiting till the last date

and time limit of 3 months from the date of communication of order considering the strong merits in the case. The Company is of the firm believe
that no part of the disallowed refund warrants reversal as the refund claim was filed within the time limit. The Company relies on various favourable
jurisdictional (Hon'ble Madras High Court) orders in the case of (Lenovo (India) Pvt Ltd vs The Joint Commissioner of GST (Appeals-1)), reported in
2023 (11) TMI 774, ARS Energy Private Limited vs Additional Commissioner (Appeals) reported in 2023 (12) TMI 233 wherein it was held that time
limit prescribed u/s 54 is directory and not mandatory. It is also a settled position of law that orders of higher appellate authorities are binding on
subordinate authorities as categorically held by Hon'ble Supreme Court in the case of Union of India and Ors v/s Kamlakshi Finance Corporation Ltd
1991 (55) ELT 433 (SC). The Company is expecting for a favourable outcome on this matter.

42 Fair value of financial assets and financial liabilities

42.1 The Company has measured its financial asset and financial liabilities at amortised cost.

42.2 The management has assessed that the fair values of cash and cash equivalents, trade receivables, trade payables, lease
liabilities, short term borrowings and other current financial liabilities approximates their carrying amounts largely due to the
short-term maturities of these instruments. The management has assessed that the fair value of floating rate instruments
approximates their carrying value.

42.3 The fair values of non-current borrowings are based on the discounted cash flows using a current borrowing rate. They are
classified as Level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including own credit
risks, which was assessed as on the balance sheet date to be insignificant.

43 Fair value hierarchy

The fair value of financial instruments are classified into three categories depending on the inputs used in the valuation technique.
The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1 measurements)
and lowest priority to unobservable inputs (Level 3 measurements). The categories used are as follows:

Ý Level 1: Quoted prices for identical instruments in an active market;

Ý Level 2: Directly or indirectly observable market inputs, other than Level 1 inputs; and

Ý Level 3: Inputs which are not based on observable market data.

a) The following are the judgements and estimates made in determining the fair values of the financial instruments that are
(a) recognized and measured at fair value and (b) measured at amortized cost and for which fair value are disclosed in the
financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company
has classified its financial instruments into the three levels of fair value measurement as prescribed under the Ind AS 113
“Fair Value Measurement”.

b) There are no transfers between levels during the year.

44 Financial risk management objectives and policies

The Company's activities expose it to the following risks:

a) Credit risk

b) Liquidity risk

c) Market risk

44.1 Credit risk

Credit risk is the risk that counter party will not meet its obligations under a financial instruments or customer contract leading
to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its
financing activities including deposits with banks and financial institutions, investments, foreign exchange transactions and other
financial instruments.

Trade and other receivables

Customer credit risk is managed by the Company subject to the Company’s established policy, procedures and control relating
to customer credit risk management. Concentration of credit risk with respect to trade and other receivables are limited, due to
the Company's customer / other party base being large and diverse. All trade and other receivables are reviewed and assessed
for default on a quarterly basis. Our historical experience of collecting receivables is that credit risk is low. Outstanding customer
receivables / other party are regularly monitored and major customers / other party are generally secured by obtaining security
deposits/bank guarantee or other forms of credit insurance. The maximum exposure to credit risk at the reporting date is the
carrying value of trade receivable as disclosed in Note 15.

44.2 Liquidity risk

It is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are
settled by delivering cash or another financial asset. The Company's approach to managing liquidity is to ensure, as far as possible,
that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without
incurring unacceptable losses or risking damage to the Company's reputation. Typically the Company ensures that it has sufficient
cash on demand to meet expected short term operational expenses. The Company's objective is to maintain a balance between
continuity of funding and flexibility through the use of bank loans/internal accruals. The table below provides details regarding the
remaining contractual maturities of significant financial liabilities at the reporting date.

1) Commodity price risk

The Company primarily imports cotton and rubber. It is exposed to commodity price risk arising out of movement in prices of such
commodities. Such risks are monitored by tracking of the prices and are managed by entering into fixed price contracts, where
considered necessary.

2) Foreign currency risk

The Company has Foreign Currency Exchange Risk on imports of input materials, Capital Equipment(s) in foreign currency for its
business. The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate
risks. Certain transactions of the Company act as a natural hedge as a portion of both assets and liabilities are denominated in
similar foreign currencies. For the remaining exposure to foreign exchange risk, the Company adopts a policy of selective hedging
based on risk perception of the management using derivative, wherever required, to mitigate or eliminate the risk.

The Company's exposure to foreign currency risk at the end of the reporting period are as follows:

3) Interest rate risk

The Company is exposed to risk due to interest rate fluctuation on long term borrowings. Such borrowings are based on fixed as
well as floating interest rate. Interest rate risk is determined by current market interest rates, projected debt servicing capability
and view on future interest rate. Such interest rate risk is actively evaluated and is managed through portfolio diversification and
exercise of prepayment/refinancing options where considered necessary.

(iii) During the current and previous year, the Company has not earned income on the investments. Accordingly, ratio for Return
on Investments has not been presented.

46 The Code on Wages 2019, the Industrial Relations Code 2020, the Code on Social Security 2020 and the Occupational Safety,
Health and Working Conditions Code, 2020 (collectively referred to as "the New Labour Codes") have been notified with effect
from 21 November 2025. Whilst the New Labour Codes are effective from 21 November, 2025, the supporting rules are yet
to be notified and during transition, the relevant provisions of the existing labour Acts and their respective rules, regulations,
notifications, standards, schemes, etc. will continue to remain in force. The Company has assessed the impact of the changes
and noted no significant impact in financial results for the quarter and nine months ended 31 December 2025 in accordance
with Ind AS 19, read with "FAQs on key accounting implications arising from the New Labour Codes" published by The Institute
of Chartered Accountants of India on 26 December 2025. The Company continues to monitor the finalisation of Central / State
Rules and clarifications from the Government on other aspects of the Labour Code and would provide appropriate accounting
effect of any further provisions as and when the relevant rules and notifications are notified and become applicable.

47 Other Statutory Information

No transactions to report against the following disclosure requirements as notified by MCA pursuant to amended Schedule III

(i) Crypto Currency or Virtual Currency.

(ii) Benami Property held under Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder.

(iii) Registration of charges or satisfaction with Registrar of Companies.

(iv) Any transactions with companies struck off.

(v) The Company has not been declared as Wilful defaulter by any Banks, Financial institution or Other lenders.

(vi) The Company have 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:

(i) 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

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

(vii) The Company have 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:

(i) 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

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

48 Capital management

The Company's objective to manage its capital is to ensure continuity of business while at the same time provide reasonable returns
to its various stakeholders but keep associated costs under control. In order to achieve this, requirement of capital is reviewed
periodically with reference to operating and business plans that take into account capital expenditure and strategic investments.

49 Certain Trade Receivables, Advances and Trade Payables are subject to confirmation. In the opinion of the management, the
value of Trade Receivables and Advances on realisation in the ordinary course of business, will not be less than the value at

which these are stated in the Balance Sheet.

50 Segment Reporting

There is only one primary business segment i .e. "Garments & Hosiery goods and related services" and hence no separate segment
information is disclosed in this financials.

Secondary information is reported geographically.

(i) Details of investments made by the Company in equity shares of subsidiary and its joint venture is disclosed in Note 9.

(ii) The sale to and purchase from Related Party are made in the normal course of business and on terms equivalent to those that
prevail in arm's length transactions. The Loans and Advances issued to Related Parties are on terms equivalent to those that
prevail in arm's length transactions. Outstanding Balances at the year end are unsecured and settlement occurs in cash for
the year ended March 31, 2026, the Company has recorded the receivable relating to amount due from Related Parties net
of impairment. This assessment is undertaken each Financial Year through examining the Financial position of the Related
Parties and the market in which the Related Party operates.

52 The Company has used an accounting software for maintaining its books of account which has a feature of recording audit
trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software,

except that:

i) The feature of recording audit trail (edit log) w.r.t what has been changed is not enabled at the application layer of the accounting
software “UBQ” Application for maintaining the books of accounts..

ii) The feature of recording audit trail (edit log) facility was not enabled at the database level to log any direct data changes for the
accounting software used for maintaining the books of account.

Further there is no instance of audit trail feature being tampered with.

Additionally, the audit trail has been preserved by the company as per the statutory requirements for record retention, except for the

exceptions mentioned above that it was enabled at the application layer of the SAP Application from March 18, 2024 and for the logic

application from April 01, 2024 and no retention at database level as audit trail feature is not enabled.

53 The Board in its meeting held on 26th September, 2025 had approved Composite Scheme of Arrangement under Sections
230 to 232 & other applicable sections of the Companies Act, 2013 amongst Dollar Industries Limited (Transferee Company),
Dindayal Texpro Private Limited (“Demerged Company"), ADDS Projects Private Limited (“Transferor Company 1”), Amicable
Properties Private Limited (“Transferor Company 2”), Bhawani Yarns Private Limited (“Transferor Company 3”), Dollar Brands
Private Limited (“Transferor Company 4”), Goldman Trading Pvt. Ltd. (“Transferor Company 5”), KPS Distributors Private
Limited (“Transferor Company 6”), PHPL Properties Private Limited (“Transferor Company 7”) & Zest Merchants Private Limited
(“Transferor Company 8”) and their respective Shareholders and Creditors ("Scheme") by virtue of which substantial related
party transactions will be pruned down. The Company has applied to BSE & NSE ('Stock Exchanges') for their prior approval to
the Scheme before submission to NCLT for its approval. The company has clarified all the queries as received from both the
Stock Exchanges to their satisfaction and received approval from BSE & NSE ('Stock Exchanges') in the month of March'26
and applied to NCLT Kolkata Bench, which in turn has pronounced its first hearing motion order dated 11th May 2026.

55 The management has evaluated all activity of the company till May 23, 2026 and concluded that there were no additional
subsequent events required to be reflected in the company's financial statements.