1.7 Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognized 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 recognized 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 and Loss net of any reimbursement.

The amount recognized as a provision is the best estimate of the consideration required to settle
the present obligation at the end of the reporting period, taking into account the risks and
uncertainties surrounding the obligation. When a provision is measured using the cash flows
estimated to settle the present obligation, its carrying amount is the present value of those cash
flows (when the effect of the time value of money is material).

Contingent Liability is disclosed after careful evaluation of facts, uncertainties and possibility
of reimbursement, unless the possibility of an outflow of resources embodying economic
benefits is remote.Contingent Liabilities are not recognized but are disclosed in notes.

Contingent Assets are not recognized. However, when the realization of income is virtually certain,
then the related asset is no longer a Contingent Asset, but it is recognized as an asset.

1.8 Earnings Per Share

Basic Earnings Per Equity share is computed by dividing the Net Profit attributable to the equity
holders of the Company by the weighted average number of equity shares outstanding during the
period. Diluted earnings per equity share is computed by dividing the Net Profit attributable to
the equity holders of the Company by the weighted average number of equity shares considered
for deriving basic earnings per equity share and also the weighted average number of equity
shares that could have been issued upon conversion of all dilutive potential equity shares. The
dilutive potential equity shares are adjusted for the proceeds receivable had the equity shares

been actually issued at fair value (i.e. the average market value of the outstanding equity shares).
Dilutive potential equity shares are deemed converted as of the beginning of the period, unless
issued at a later date. Dilutive potential equity shares are determined independently for each
period presented.

The number of equity shares and potentially dilutive equity shares are adjusted retrospectively for
all periods presented for any Share Splits and Bonus Shares issues including for changes effected
prior to the approval of the Financial Statements by the Board of Directors.

1.9 Cash Flow Statement

Cash Flows are reported using the indirect method, prescribed in Ind-AS 7 'Statement of Cash
Flows'. Whereby Profit Before Tax for the period is adjusted forthe effects of transactions of
a non-cash nature, any deferrals or accruals of Past or Future Operating Cash Receipts or
Payments and Item of Income or expenses associated with investing or financing cash flows. The
Cash Flows from Operating, Investing and Financing Activities of the Company are segregated.

1.10 Borrowing Costs

Borrowing costs are interest and other costs (including exchange differences relating to
foreign currency borrowings to the extent that they are regarded as an adjustment to interest
costs) incurred in connection with the borrowing of funds. Borrowing costs directly attributable
to acquisition or construction of an asset which necessarily take a substantial period of time to
get ready for its intended use are capitalized as part of the cost of the asset. All other borrowing
costs are recognized as an expense in the period in which they are incurred.

1.11 Cash and Cash Equivalents

Cash and Cash Equivalent in the Balance Sheet comprise Cash at Banks and on Hand, Cheques
on Hand and Short-Term Deposits with an original maturity of three months or less and highly
liquid investments that are readily convertible into known amounts of cash and which are
subject to an insignificant risk of changes in value net of outstanding bank overdrafts as they
are considered an integral part of the Company's Cash Management.

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 that are
repayable on demand, as they are considered an integral part of the Company's cash
management.

1.12 Exceptional Items

When items of Income and Expense within Profit or Loss from ordinary activities are of such
size, nature or incidence that their disclosure is relevant to explain the performance of the
enterprise for the period, the nature and amount of such items is disclosed separately as
Exceptional Items.

1.13 Non-Current Assets held for Sale

The Company classifies Non-Current Assets and disposal groups as held for sale if their carrying
amounts will be recovered principally through a sale/ distribution rather than through
continuing use and the sale is considered highly probable. Management must be committed
to the sale within one year from the date of classification.

The Company treats sale/distribution of the asset or disposal group to be highly probable when:

• The appropriate level of management is committed to a plan to sell the Asset (or

disposal group),

• An active Programme to locate a buyer and complete the plan has been initiated (if
applicable),

• The Asset (or disposal group) is being actively marketed for sale at a price that is
reasonable in relation to its current fair value.

• The Sale is expected to qualify for recognition as a completed Sale within one year
from the date of classification, and

• Actions required to complete the plan indicated that it is unlikely that significant changes
to the plan will be made or that the plan will be withdrawn.

Non-Current Assets held for Sale and disposal groups are measured at the lower of their carrying
amount and the fair value less costs to sell. Assets and liabilities classified as held for sale are
presented separately in The Balance Sheet.

Property, Plant and Equipment and Intangible Assets once classified as held for sale are not
depreciated or amortized.

1.14 Critical Accounting Estimates and Judgments

In the course of applying the policies outlined above, the Company is required to make judgments,
estimates and assumptions about the carrying amount of Assets and Liabilities that are not
readily apparent from other sources. The estimates and associated assumptions are based on
historical experience and other factors that are considered to be relevant. Actual results may
differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognized 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 period, if the revision affects
current and future periods.

a) Impairment of Financial Assets

The impairment provisions for Financial Assets are based on assumptions about risk of default
and expected Loss rates. The Company uses judgment in making assumption and selecting the
inputs to the impairment calculation, based on Company's past history, existing market
conditions as well as forward estimate at the end of each reporting period.

b) Income Taxes

Management judgment is required for the calculation of provision for Income Taxes and
Deferred Tax Assets and Liabilities. The Company reviews at each Balance Sheet date the
carrying amount of Deferred Tax Assets. The amount of tax payable in respect of any period is
dependent upon the interpretation of the relevant tax rules. The factors used in estimates
may differ from actual outcome which could lead to significant adjustment to the amounts
reported in the Financial Statements.

c) Defined Benefit Plans

The cost of the defined benefit plan and other post-employment benefits and the present
value of such obligation are determined using actuarial valuations. An actuarial valuation
involves making various assumptions that may differ from actual development in the future.
These Includes the determination of the discount rate, future salary increases, mortality rates
and attrition rate. Due to the complexities involved in the valuation and its long-term nature,

a defined benefit obligation is highly sensitive to changes in these assumptions. All
assumptions are reviewed at each reporting date.

d) Fair Value Measurements

Some of the Company's Assets and Liabilities are measured at fair value for financial reporting
purposes. The management determines the appropriate valuation techniques and inputs for
fair value measurements. In estimating the fair value of an Asset or a Liability, the Company
uses market-observable data to the extent it is available. In case where level 3 inputs are
applied, the Company engages third party qualified valuers to perform the valuation. The
management works closely with the qualified external valuers to establish the appropriate
valuation techniques and inputs to the model.

e) Insurance Claims

Insurance Claims are recognized when the Company has reasonable certainty of recovery.
Subsequently any change in recoverability is provided for.

1.15 Key Sources of Estimation Uncertainties

The key assumptions concerning the future and other key sources of estimation uncertainty at
the reporting date, that have a significant risk of causing a material adjustment to carrying
amounts of Assets and Liabilities within the next financial years are described below. The
Company based its assumptions and estimates on parameters available when the financial
statements were prepared. Existing circumstances and assumptions about future
developments, however, may change due to market changes or circumstances arising that are
beyond the control of the Company. Such changes are reflected in the assumptions when they
occur.

(i) Useful lives and residual value of Property, Plant and Equipment

Useful life and residual value of Property, Plant and Equipment are based on
management's estimate of the expected life and residual value of those Assets and is as
per schedule II to the Companies Act 2013. These estimates are reviewed at the end of
each reporting period. Any reassessment of these may result in change in depreciation
expense for future years.

(ii) Impairment of Property Plant and Equipment

At the end of each reporting period, the Company reviews the carrying amounts of
its Property, Plant and Equipment to determine whether there is any indication that
those Assets have suffered an Impairment Loss. If any such indication exists, the
recoverable amount of the Asset is estimated in order to determine the extent of the
Impairment Loss (if any).

Recoverable amount is the higher of fair value less costs to sell and value in use. Value
in use is usually determined on the basis of discounted estimated future cash flows. This
involves management estimates onanticipated commodity prices, market demand and
supply, economic and regulatory environment, discount rates and other factors. Any
subsequent changes to cash flow due to changes in the above mentioned factors could
impact the carrying value of Assets.

(iii) Deferred Tax Assets

Deferred Tax Assets are recognized only to the extent it is considered probable that
those assets will be recoverable. This involves an assessment of when those Deferred
Tax Assets are likely to reverse and a judgment as to whether or not there will be
sufficient taxable profits available to offset the tax assets when they do reverse. The
Company reviews the carrying amount of Deferred Tax Assets at the end of each reporting
period. Any change in the estimates of future taxable income may impact the
recoverability of Deferred Tax Assets.

(iv) Contingencies

In the normal course of business, contingent liabilities may arise from litigation and other
claims against the Company. Potential liabilities that are possible but not probable of
crystallizing or are very difficult to quantify reliably are treated as contingent liabilities.
Such liabilities are disclosed in the notes but are not recognized.

1.16 Segment Reporting

The Board of Directors of the Company identified Textiles as primary business segment as the
company mainly dealing in Textile business only.

Further the board has identified two geographical segments i.e. 'Domestic' and 'Export'
considering the Political and Economic Environment. Type A customers, assets employed and risk
parameters associated in respect of each of the geographical area.

1.17 CSR Expenditure

Amount spent on CSR activities during the year is charged to Statement of Profit & Loss, if the
same is of revenue nature.

Term Loans Covered:-

i. Primary Security:

(a) first pari-passu charge over all that pieces and parcels of the (i) Industrial Land measuring 1.82
Hectares, comprised in Araji No. 991, 992/1568, 993/1570; (ii) Industrial Land measuring 1.41
Hectares, comprised in Araji No.983; and (iii) Industrial Land measuring 20,400 sq. mtrs., comprised
in Araji No. 989 and 990, village Undwa, tehsil Gangrar, district Chittorgarh, Rajasthan, together with
all super-structures, construction thereof, easements, right to way and appurtenances thereon, both
present and future.

(b) first pari-passu charge over all that pieces and parcels of the land measuring 2.03 Hectare, i.e., 20300
sq. mtrs. converted for industrial purposes from Araji No. 5 measuring 0.61 Hectare, Araji No. 6
measuring 0.99 Hectare and Araji No. 7 measuring 0.43 Hectare, village Jojaro ka Khera, Gram
Panchayat Jojaro ka Khera, Patwar Circle Jojaro ka Khera, tehsil Gangrar, district Chittorgarh,
Rajasthan, together with all super-structures, construction thereof, easements, right to way and
appurtenances thereon, both present and future.

ii. Collateral Security & Equitable Mortgage:

(a) Equitable mortgage of Residential, situated at Plot No. A-133, Araji no. 637/2 Kamla Vihar Vistar
Yojana, Bhilwara, 311001, standing in the name of Smt. Pallavi Laddha.

(b) Equitable mortgage of Industrial Land situated at Araji No 13/2, 14/2 & 16/2,(New Araji No
890/13, 892/14, 894/16) Village Jorjo ka Khera, Tehsil Gangrar -312901 Distt Chittorgarh
Rajasthan, standing in the name of Shri Yogesh Laddha.

(c) Equitable mortgage of Industrial Land & Building situated at Araji No. 18 Means, 19, Village Jojro
ka Khera, Tehsil Gangrar - 312901 Distt Chittorgarh, Rajasthan, standing in the name of M/s
Manomay Tex India Limited.

(d) Equitable mortgage of shop at 32, Heera Panna Market Pur Road, Bhilwara -311001 Rajasthan,
standing in the name of Kailashchandra Hiralal Laddha.

(e) Equitable mortgage of Industrial Land situated at Araji No 9,10,11 & 12, Village Zojaro ka Khera,
Tehsil Gangrar -312901 Distt Chittorgarh Rajasthan, standing in the name of M/s Arav Export
Prop. Shri Kailashchandra Hiralal Laddha.

(f) first pari-passu charge over the fixed deposit(s) amounting to Rs. 2,77,00,000.00 (Rupees Two
Crores Seventy Seven Lakhs Only), held/ maintained with the State Bank of India, together with
all the benefits arising therefrom including accrued interest (the "Fixed Deposit 1").

(g) first pari-passu charge over the fixed deposit(s) amounting to Rs. 2,93,00,000.00 (Rupees Two
Crores Ninety Three Lakhs Only), held/ maintained with the State Bank of India, together with all
the benefits arising therefrom including accrued interest (the "Fixed Deposit 2").

(h) first pari-passu charge over the fixed deposit(s) amounting to Rs. 12,00,000.00 (Rupees Twelve
Lakhs Only), held/ maintained with the State Bank of India, together with all the benefits arising
therefrom including accrued interest (the "Fixed Deposit 3").

(i) Second pari-passu charge over the entire current assets of the Company, both present and future
for Term loans.

iii. Personal Guarantees

(a) Shri Kailashchandra Hiralal Laddha s/o Shri Hiralal Bhagwan Laddha.

(b) Shri Yogesh Laddha s/o Shri Kailashchandra Hiralal Laddha.

(c) Shri Maheshchandra Kailashchandra Laddha s/o Shri Kailashchandra Hiralal
Laddha.

(d) Shri Kamlesh Kailashchandra Laddha s/o Shri Kailashchandra Hiralal Laddha.

(e) Smt. Pallavi Laddha w/o Shri Yogesh Laddha.

iv. Corporate Guarantees

(a) Aarav Export Prop. Shri Kailashchandra Hiralal Laddha s/o Shri Hiralal Bhagwan

Laddha.

Unsecured loans are repayable after one year and bearing interest rate as per Mutual Consent Basis.

Vehicle loans are secured against respective vehicles.

Details of security

First pari passu charge on stock of raw material, WIP, finished goods laying in borrower's factory, godown
elsewhere and including goods in transit, consumables, stores and spares, book debts, consumables, Book
Debts arising out from genuine trade transactions of the business, Loans & Advances and all other current
assets of the company (Present & future).

Disclosure - Borrowings from Banks on basis of Security of Current Assets

In respect of borrowings from banks on the basis of security of current assets, Monthly /quarterly statements
of current assets filed by the Company with banks are in agreement with the books of accounts.

Each year, the Board reviews the level of funding in the gratuity plan. Such a review includes the
asset-liability matching strategy and investment risk management policy. The Board decides its
contribution based on the report of actuarial valuer.

Interest Risk

A decrease in the bond interest rate will increase the Plan Liability.

Longevity Risk

The present value of the defined benefit plan liability is calculated by reference to the best estimate
of the mortality of Plan participants both during and after their employment. An increase in the life
expectancy of the Plan participants will increase the Plan's Liability.

Salary Risk

The present value of the defined benefit plan liability is calculated by reference to the future salaries
of plan participants. As such, an increase in the salary of the plan participants will increase the Plan's
Liability.

33. The response to letters sent requesting confirmation of balances has been insignificant. In the
management's opinion, adjustments on reconciliation of the balances, if any required, will not be
material in relation to the Financial Statements of the group and the same will be adjusted in the
Financial Statements as and when the confirmations are received and reconciliations completed.

34. The Code on Social Security, 2020 ('Code') relating to employee benefits during employment and
post-employment benefits received Presidential assent in September 2020.
The Code has been published in the Gazette of India. However, the date on which the Code will come
into effect has not been notified. The group will assess the impact of the Code when it comes into
effect and will record any related impact in the period the Code becomes effective.

35. Disclosures as per Ind AS-108 "Operating Segments"

The company is engaged in the business of textile & other products. Current operations, according
to the management, constitute a single segment and no reportable segment in accordance with the
requirement of Ind AS- 108 'Operating Segment Reporting" notified under the companies (Indian
Accounting Standards) Rules, 2015.

See accompanying notes forming part of Financial Statements
As per our report of even date annexed
For KARP & Co.

[Formerly known as Alok Palod & Co.] MANOMAY TEX INDIA LIMITED

Chartered Accountants

(F.R.N. 018061C) For and on behalf of the Board

Sd/- Sd/- Sd/-

Alok Palod

Partner Mr. Yogesh Laddha Mrs. Pallavi Laddha

M. No. :- 417729 (Managing Director) (Whole Time Director)

Date:14/05/2025 DIN :02398508 DIN :06856220

Place : Bhilwara (Rajasthan) India

UDIN:25417729BMGYML9593 Sd/- Sd/-

Mr. Kamesh Shri Shri Mal Mr. Raj Kumar Chechani
(Company Secretary) (Chief Financial Officer)

(PAN- CJEPM3737M) (PAN- AXKPC6508J)