The EIR amortisation is included in finance
expense in the statement profit or loss.

2.1.9.c.ii Financial liabilities at Fair Value through
Profit or Loss (FVPL)

Financial Liabilities at FVPL are those which
are designated as such on initial recognition,
or which are held for trading. Fair value
gains / losses attributable to changes in own
credit risk is recognised in OCI. These gains
/losses are not subsequently transferred
to Statement of Profit and Loss. All other
changes in fair value of such liabilities are
recognised in Profit or Loss.

2.1.9.d Derivative Financial Instruments

Derivative instruments such as forward foreign
currency contracts, interest rate swaps and option
contracts are used to hedge foreign currency
risks and interest rate risk. Such derivatives are
initially recognised at their fair values on the date
on which a derivative contract is entered into and
are subsequently re-measured at fair value on
each reporting date. Any gains or losses arising
from changes in the fair value of derivatives are
taken directly to Profit or Loss. Derivatives are
carried as financial assets when the fair value is
positive and as financial liabilities when the fair
value is negative.

2.1.10 Off-setting of financial instruments

Financial assets and financial liabilities are offset
and the net amount is reported in the balance sheet
if there is a currently enforceable legal right to offset
the recognised amounts and there is an intention to
settle on a net basis, to realize the assets and settle the
liabilities simultaneously.

2.1.11 Earnings per Share

Basic earnings per share is calculated by dividing the
profit or loss for the period attributable to the equity
holders of the Company by the weighted average
number of ordinary shares outstanding during the year.
For the purpose of calculating diluted earnings per
share, the net profit or loss for the period attributable to
equity shareholders and the weighted average number
of shares outstanding during the period are adjusted
for the effects of all dilutive potential equity shares.
(Refer Note 33)

2.1.12 Intangible Assets

The Company identifies an identifiable non-monetary
asset without physical substance as an intangible
asset. The Company recognises an intangible asset if
it is probable that expected future economic benefits
attributable to the asset will flow to the entity and the
cost of the asset can be measured reliably. An intangible

asset is initially measured at cost unless acquired in a
business combination in which case an intangible asset
is measured at its fair value on the date of acquisition. The
Company identifies research phase and development
phase of an internally generated intangible asset.
Expenditure incurred on research phase is recognised
as an expense in the profit or loss for the period in
which incurred. Expenditure on development phase
are capitalised only when the Company is able to
demonstrate the technical feasibility of completing the
intangible asset, the ability to use the intangible asset
and the development expenditure can be measured
reliably. The Company subsequently measures all
intangible assets at cost less accumulated amortisation
less accumulated impairment. An intangible asset is
amortised on a straight-line basis over its useful life.
Amortisation commences when the asset is in the
location and condition necessary for it to be capable
of operating in the manner intended by management.
Amortisation ceases at the earlier of the date that the
asset is classified as held for sale (or included in a
disposal group that is classified as held for sale) and the
date that the asset is derecognised. The amortisation
charge for each period is recognised in profit or loss
unless the charge is a part of the cost of another asset.
The amortisation period and method are reviewed at
each financial year end. Any change in the period or
method is accounted for as a change in accounting
estimate prospectively. The Company derecognises
an intangible asset on its disposal or when no future
economic benefits are expected from its use or disposal
and any gain or loss on derecognition is recognised in
profit or loss as gain / loss on derecognition of asset.

2.1.13 Income Taxes

Income tax expense represents the sum of tax
currently payable and deferred tax. Tax is recognised
in profit or loss except to the extent that it relates
to items recognised directly in equity or in other
comprehensive income.

2.1.13. a Current Tax

Current tax is determined on income for the year
chargeable to tax in accordance on the basis of
the tax laws enacted or substantively enacted at
the end of the reporting period. Current tax items
are recognised in correlation to the underlying
transaction either in profit or loss or OCI or directly
in equity. The Company has provided for the tax
liability based on the significant judgment that the
taxation authority will accept the tax treatment.

2.1.13. b Deferred Tax

Deferred tax is recognised on temporary
differences between the carrying amounts of
assets and liabilities in the balance sheet and the

corresponding tax bases used in the computation
of taxable profit. Deferred tax liabilities are
recognised for all taxable temporary differences
on gross basis. Deferred tax assets are recognised
for all deductible temporary differences,
unabsorbed losses and tax credits to the extent
that it is probable that future taxable profits will
be available against which those deductible
temporary differences, unabsorbed losses and
tax credits will be utilised. The carrying amount
of deferred tax assets is reviewed at the end of
financial year and reduced to the extent that it is
no longer probable that sufficient taxable profits
will be available to allow all or part of the asset
to be recovered. Deferred tax assets and liabilities
are measured at the tax rates that are expected to
apply in the period in which the liability is expected
to be settled or the asset realised, based on tax
rates and tax laws that have been substantively
enacted by the balance sheet date. Deferred
tax assets and liabilities are offset when there is
a legally enforceable right to set off current tax
assets against current tax liabilities and when they
relate to income taxes levied by the same taxation
authority and the Company intends to settle its
current tax assets and liabilities on a net basis.

2.1.14 Fair Value Measurement

The Company measures financial instruments
at fair value in accordance with the accounting
policies mentioned above. Fair value is the price
that would be received to sell an asset or paid
to transfer a liability in an orderly transaction
between market participants at the measurement
date. The fair value measurement is based on the
presumption that the transaction to sell the asset
or transfer the liability takes place either:

• In the principal market for asset or liability, or

• In the absence of a principal market, in
the most advantageous market for asset
or liability

All assets and liabilities for which fair value is
measured or disclosed in the financial statements
are categorized within the fair value hierarchy
that categorizes into three levels, described as
follows, the inputs to valuation techniques used to
measure value. The fair value hierarchy gives the
highest priority to quoted prices in active markets
for identical assets or liabilities (Level 1 inputs) and
the lowest priority to unobservable inputs (Level
3 inputs).

Level 1 —quoted market prices in active markets
for identical assets or liabilities

Level 2 — inputs other than quoted prices included
within Level 1 that are observable for the asset or
liability, either directly or indirectly

Level 3 — inputs that are unobservable for the
asset or liability

For assets and liabilities that are recognized in the
financial statements at fair value on a recurring
basis, the Company determines whether transfers
have occurred between levels in the hierarchy by
re-assessing categorization at the end of each
reporting period and discloses the same.

2.1.15 Segment Reporting

The Chief Operational Decision Maker (CODM)
monitors the operating results of its business Segments
separately for the purpose of making decisions about
resource allocation and performance assessment.
Segment performance is evaluated based on profit
or loss and is measured consistently with profit or
loss in the financial statements. Operating segments
are reported in a manner consistent with the internal
reporting to the CODM.

Accordingly, the Board of Directors of the Company
is CODM for the purpose of segment reporting. Refer
note 40 for segment information presented.

2.1.16 Cash and cash equivalents:

Cash comprises cash on hand and demand deposits
with banks. Cash equivalents are short-term balances
(with an original maturity of three months or less
from the date of acquisition), which are subject to an
insignificant risk of changes in value.

For the purpose of the statement of cash flows, cash
and cash equivalents consist of cash and short-term
deposits, as defined above, net of outstanding bank
overdrafts as they are considered an integral part of the
Company's cash management.

2.1.17 Statement of Cash flows:

Cash flows from operating activities are reported using
the indirect method, whereby profit / (loss) before tax
is adjusted for the effects of transactions of non-cash
nature and any deferrals or accruals of past or future cash
receipts or payments. The cash flows from operating,
investing and financing activities of the Company are
segregated based on the available information.

Note:2.2

Ministry of Corporate Affairs (“MCA”) notifies new standards
or amendments to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time to
time. For the year ended 31^st March, 2025, MCA has not
notified any new standards or amendments to the existing
standards applicable to the Company.

Note:

1. Pursuant to a resolution passed at the meeting of Shareholder dated 06^th September 2024 , Company has approved
sub-division of 1 (One) Equity Share of face value of '10/- each into 10 (ten) Equity Shares of face value of '1/- each.
Accordingly, the issued, subscribed and paid-up share capital of the Company was subdivided from 14,41,47,168 equity
shares of face value of '10/- each to 1,44,14,71,680 equity shares of face value of '1/- each. The impact of sub-division
of shares is considered only for the computation of earnings share as per the requirement of earnings share as per the
requirement/ principles of Ind AS 33, as applicable.

02. The Company doesn't have any holding company

03. During the year ended 31/03/2022 company has issued 9,60,98,112 bonus share in 2:1
Note 13.1 Terms/right attached to Equity Shares:

The company has only one class of shares referred to as Equity shares having face value of '1/- each (P.Y. '10 each) Holder
of equity share is entitled to one vote per share.

In the event ofliquidation ofthe Company, the holders of equity shares will be entitled to receive any ofthe remaining assets ofthe
company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution
will be in proportion to the number of equity shares held by the shareholder.

The Company declares and pays dividends in Indian Rupees. The Dividend proposed by the Board of Director is subject to
the approval of the shareholders in the ensuing Annual General Meeting.

Note 34.2.1 Investment in equity shares quoted on recognised stock exchanges

The fair value of investment in equity shares is based on quoted price.

Note 34.2.2 Investment in unqouted preference shares

The fair value of unquoted preference shares has been determined using Level 3 inputs based on Discounted Cash Flow
method. A one percentage point change in the unobservable inputs used in fair valuation of Level 3 does not have a significant
impact on its value. The movement in unquoted investments is on account of sale of shares during the comparative period
(Refer Note 5).

Note 34.2.3 Transfers between levels of fair value hierarchy

There have been no transfers between levels of fair value heirarchy during the year ended 31^st March, 2025 and during the
comparative period ended 31^st March, 2024.

Note 34.2.4 Valuation Process

The finance department of the company includes a team that performs the valuations of financial assests and liabilities
required for financial reporting purposes, including level 3 fair values. The fair valuation of level 1 and level 2 classified
assests and liabilities are readily available from the qouted prices in the open market and rates available in secondary market
respectively. The valuation method applied for various Financial assests and liabilities are as follows-

1. Quoted price in the primary market cosidered for the fair valuation of the non-current investment. Gain/ (loss) on fair
valuation is recognised in profit and loss.

2. The carrying amount of trade receivable, trade payable, cash and bank balances, short term loans and advances,
statutory/ receivable, short term borrowing, employee dues are considered to be the same as their fair value due to their
short-term nature.

Note 34.3 Financial Risk Management

The company is exposed to market risk, credit risk and liquidity risk. The company's senior management oversees the
management of these risks. The Board of Directors review and agree policies for managing each of these risks, which are
summarised below:

Note 34 (Contd...)

Note 34.3.1 Market Risk

Market risk is the risk that the fair value or future cash flow of a financial instrument will fluctuate instrument because of

changes in market factors. Market risk comprises three type of risks:

a. Currency Risk

b. Interest Rate Risk

c. Price Risk

The company is exposed to currency risk and price risk. The same are analysed below:

a. Currency Risk

The company is exposed to foreign exchange risk arising from foreign currency borrowing denominated in US dollars
(US$) and foreign currency notes denominated in various foreign currencies. The company also imports certain material
which are denominated in US$ which exposes it to foreign currency risks. If the value of the Indian Rupee depreciates
relative to these foreign currencies, the related costs may increase. The exchange rates between the Indian Rupee and
US$ has changed substantially in recent periods and may continue to fluctuate substantially in the future. In order to
mitigate the foreign Currency exposure risk , as on 31^st March, 2025, the company has entered into derivative contract
of 'Nil Lakhs (31^st March, 2024 'Nil Lakhs) to hedge exposure to fluctuation risk. The below sensitivity does not include
the impact of foreign currency forward contracts which largly mitigate the risk:

c. Interest Rate Risk

I nterest rate risk is the risk that the fair value of future cash flows of the financial instruments will fluctuate because
of changes in market interest rates. In order to optimize the Company's position with regards to interest income and
interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk
management by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio.

According to the Company interest rate risk exposure is only for floating rate borrowings. For floating rate liabilities, the
analysis is prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding
for the whole year. A 50 basis point increase or decrease is used when reporting interest rate risk internally to key
management personnel and represents management's assessment of the reasonably possible change in interest rates.

Note 34.3.3 Credit Risk

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The Company maintains
its cash and cash equivalents and bank deposits with banks having good reputation, good past track record and high quality
credit rating and also reviews their credit-worthiness on an on-going basis.

The maximum exposure to credit risk at the reporting date is primarily from trade receivables. Credit risk has always been
managed by the Company through credit approvals, establishing credit limits and continuously monitoring the creditworthiness
of customers to which the Company grants credit terms in the normal course of business.

On account of the adoption of Ind AS 109, the Company uses ECL model to assess the impairment loss or gain. The Company
uses a provision matrix to compute the ECL allowance for trade receivables and unbilled revenues. The provision matrix
takes into account available external and internal credit risk factors and the Company's experience for customers.

The Company reviews trade receivables on periodic basis and makes provision for doubtful debts if collection is doubtful.
The Company also calculates the expected credit loss (ECL) for non-collection of receivables. The Company makes additional
provision if the ECL amount is higher than the provision made for doubtful debts. In case the ECL amount is lower than the
provision made for doubtful debts, the Company retains the provision made for doubtful debts without any adjustment.

Note 47 - Additional Regualtory Information (Non Ind AS)

The disclosures required by amendment to Division II of Schedule III of the Companies Act, 2013, are given only to the extent

applicable:

(i) Details of Benami Property: 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) Details of Charges: The Company does not have any charges or satisfaction which is yet to be registered with ROC
beyond the statutory period.

(iii) Details of crypto currency or virtual currency : The Company has not traded or invested in Crypto currency or Virtual
Currency during the financial year.

(iv) Utilization of borrowed funds and share premium: The Company has not received any fund from any person(s) or
entity(is), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise)
that the Company shall:

Note 47 (Contd...)

(iv)(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

(iv)(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficial

(v) Undisclosed Income: The Company does not have any transaction which is not recorded in the books of accounts that
has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961
(such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

(vi) Willful Defaulter: The Company is not declared as willful defaulter by any bank or financial institution (as defined under
the Companies Act, 2013) or consortium thereof or other lender in accordance with the guidelines on willful defaulters
issued by the Reserve Bank of India.

(vii) Compliance with number of layers of Companies: The Company has complied with the number of layers for its holding in
downstream companies prescribed under clause (87) of section 2 of the Companies Act, 2013 read with the Companies
(Restriction on number of Layers) Rules, 2017.

(viii) Valuation of PP&E, Intangible asset and Investment Property : The Company has not revalued any of its Property, Plant
and Equipment (including Right-of-Use Assets) during the year

(ix) Compliance with approved scheme(s) of arrangements : The Company has not entered into any scheme of arrangement
which has an accounting impact on current or previous financial year.

(x) Details in respect of difference in respect of Current Assets as per Books and details as provided in quarterly returns
filed by the company, the details of the same are as under:

(xi) The Company does not have any transctions or relationships with any companies struck off under section 248 of the
Companies Act, 2013.

Note 48

The Income Tax Department had carried out the search at the company's business premises from July 20,2022 to July
26, 2022. The assessments for the period covered by search are pending for some of the years. The management of the
Company does not expect any material additional liability as a result of the search and hence no provision for the additional
income tax liability has been made by the Company.

As per our report of even date attached herewith.

For, Nahta Jain & Associates For & on behalf of the Board of Directors of

Chartered Accountants NANDAN DENIM LIMITED

(Firm Regd. No. 106801W)

(Gaurav Nahta) Jyotiprasad Chiripal Shaktidan Gadhavi Deepak Chiripal

Partner (Managing Director) (Whole Time Director) (Chief Executive Officer)

(M.No. 116735) (DIN: 00155695) (DIN: 09004587)

Date : 23/05/2025 Suresh Maheshwari Rinku Patel

Place: Ahmedabad (Chief Financial Officer) (Company Secretary)