2.17 Provisions and contingencies
Provisions:

Provisions are recognised when the Company has a
present obligation (LegaL or constructive) as a resuLt of a
past event, 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 measured at
the best estimate of the expenditure required to settLe
the present obLigation at the BaLance Sheet date.

If the effect of the time vaLue of money is materiaL,
provisions are discounted to reflect its present vaLue
using a current pre-tax rate that reflects the current
market assessments of the time vaLue of money and
the risks specific to the obLigation. When discounting is
used, the increase in the provision due to the passage of
time is recognised as a finance cost.

Where the Company expects some or aLL of a provision
to be reimbursed, the reimbursement is recognised as
a separate asset but onLy when the reimbursement is
virtuaLLy certain. The expense reLating to any provision
is presented in the income statement net of any
reimbursement.

Contingencies:

Contingent liabilities
A contingent liability is:

• a possibLe obLigation arising from past events, 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 recognised because:

- it is not probabLe that an outflow of resources
embodying economic benefits wiLL be required
to settLe the obLigation; or

- the amount of the obLigation cannot be
measured with sufficient reLiabiLity.

Contingent LiabiLities are not recognized but discLosed
unLess the contingency is remote.

Contingent assets

A contingent asset is a possibLe asset that arises from
past events and whose existence 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.

Contingent assets are not recognised but are discLosed
when the inflow of economic benefits is probabLe. When
inflow is virtuaLLy certain, an asset is recognized.

2.18 Segment Reporting

Operating segments are defined as components of an
enterprise for which discrete financiaL information is
avaiLabLe that is evaLuated reguLarLy by the chief operating
decision maker, in deciding how to aLLocate resources
and assessing performance.

The Company is engaged in manufacture and trading
of synthetic yarn and textiLes which is considered as
the onLy reportabLe business segment. The Company's
Chief Operating Decision Maker (CODM) is the Managing
Director. He evaLuates the Company’s performance
and aLLocates resources based on anaLysis of various
performance indicators by geographicaL areas onLy.

2.19 Related party

A reLated party is a person or entity that is reLated to the
reporting entity and it incLudes:

(a) A person or a cLose member of that person’s famiLy
if that person:

(i) has controL or joint controL over the reporting
entity;

(ii) has significant influence over the reporting
entity; or

(iii) is a member of the key management personneL
of the reporting entity or of a parent of the
reporting entity.

(b) An entity is reLated to the reporting entity if any of
the foLLowing conditions appLy:

(i) The entity and the reporting entity are
members of the same Group.

(ii) One entity is an associate or joint venture of
the other entity.

(iii) Both entities are joint ventures of the same
third party.

(iv) One entity is a joint venture of a third entity
and the other entity is an associate of the third
entity.

(v) The entity is a post-empLoyment benefit pLan
for the benefit of employees of either the
reporting entity or an entity reLated to the
reporting entity.

(vi) The entity is controLLed or jointLy controLLed by a
person identified in (a).

(vii) A person identified in (a) (i) has significant
influence over the entity or is a member of the
key management personneL of the entity (or of
a parent of the entity).

(viii) The entity, or any member of a Group of
which it is a part, provides key management
personneL services to the reporting entity or to
the parent of the reporting entity.

CLose members of the famiLy of a person are those
famiLy members who may be expected to influence, or
be influenced by, that person in their deaLings with the
entity incLuding:

(a) that person’s chiLdren, spouse or domestic partner,
brother, sister, father and mother;

(b) chiLdren of that person’s spouse or domestic
partner; and

(c) dependents of that person or that person’s spouse
or domestic partner.

Key management personneL are those persons having
authority and responsibiLity for pLanning, directing
and controLLing the activities of the entity, directLy or
indirectLy, incLuding any director (whether executive or
otherwise) of that entity.

ReLated party transactions and outstanding baLances
discLosed in the financiaL statements are in accordance
with the above definition as per Ind AS 24.

2.20 Cash and cash equivalents

Cash and cash equivaLents in the BaLance Sheet
comprise cash at banks and cash on hand and short
term deposits/investments 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.
These excLude bank baLances (incLuding deposits) heLd as
margin money or security against borrowings, guarantees
etc. being not readiLy avaiLabLe for use by the Company.

For the purpose of the Statement of cash flows, cash
and cash equivaLents consist of cash and short term
deposits and excLude items which are not avaiLabLe for
generaL use as on the date of BaLance Sheet, as defined
above, net of bank overdrafts which are repayabLe on
demand where they form an integraL part of an entity's
cash management.

2.21 Dividend to equity share holders of
the Company

The Company recognises a LiabiLity to make dividend
distributions to equity hoLders of the Company when
the distribution is authorised and the distribution is no
Longer at the discretion of the Company. As per the
corporate Laws in India, a distribution is authorised when
it is approved by the sharehoLders. A corresponding
amount is recognised directLy in equity.

2.22 Cash Flow Statement

Statement of Cash FLows is prepared segregating the
cash flows into operating, investing and financing
activities. Cash flow from operating activities is reported
using indirect method as set out in Ind AS 7 'Statement
of Cash FLows', adjusting the net profit for the effects of:

i. changes during the period in inventories and
operating receivabLes and payabLes transactions of a
non-cash nature;

ii. non-cash items such as depreciation, provisions,
deferred taxes, unreaLised foreign currency gains
and Losses, and"

iii. aLL other items for which the cash effects are
investing or financing cash flows.

2.23 Earnings per share

The Basic Earnings per equity share ('EPS') is computed
by dividing the net profit or Loss after tax before other
comprehensive income for the year attributabLe to the
equity sharehoLders of the Company by weighted average
number of equity shares outstanding during the year.
Ordinary shares that wiLL be issued upon the conversion
of a mandatoriLy convertibLe instrument are incLuded
in the caLcuLation of basic earnings per share from the
date the contract is entered into. ContingentLy issuabLe
shares are treated as outstanding and are incLuded in
the caLcuLation of basic earnings per share onLy from the
date when aLL necessary conditions are satisfied (i.e. the
events have occurred).

DiLuted earnings per equity share are computed by
dividing the net profit or Loss before OCI attributabLe to
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
(incLuding options and warrants). The diLutive potentiaL
equity shares are adjusted for the proceeds receivabLe
had the equity shares been actuaLLy issued at fair vaLue.
DiLutive potentiaL equity shares are deemed converted
as of the beginning of the period unLess issued at a Later
date. Anti-diLutive effects are ignored.

2.24 Events after Reporting date

Where events occurring after the BaLance Sheet date
provide evidence of conditions that existed at the end
of the reporting period, the impact of such events is
adjusted within the financiaL statements. Where the
events are indicative of conditions that arose after the
reporting period, the amounts are not adjusted, but are
discLosed if those non-adjusting events are materiaL.

2.27 Recent accounting pronouncements

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. During the year ended March
31, 2025, MCA has not notified any new standards or
amendments to the existing standards appLicabLe to the
Company.

Nature and Purpose of Reserves

a) Capital Reserve

Capital, reserve was created under the previous GAAP out of the profit earned from a specific transaction of capital,
nature. Capital, reserve is not avaiLabLe for the distribution to the shareholders.

b) Capital Redemption Reserve

CapitaL Redemption Reserve was created on redemption of Preference shares and purchase of its own shares out
of free reserves of the Company in accordance with the requirements of Companies Act. This can be utiLized in
accordance with the provisions of the Companies Act, 2013

c) Securities Premium

The amount received in excess of face vaLue of the equity shares is recognised in Securities Premium Reserve. This
can be utiLized in accordance with the provisions of the Companies Act, 2013.

d) General Reserve

This Reserve is created by an appropriation from one component of equity (generaLLy retained earnings) to another,
not being an item of Other Comprehensive Income. The same can be utiLized by the Company in accordance with the
provisions of the Companies Act, 2013.

e) Employee Stock Option Outstanding

The fair vaLue of the equity-settLed share based payment transactions with empLoyees is recognised in Statement of
Profit and Loss with corresponding credit to EmpLoyee Stock Options Outstanding Account.

f) Retained Earnings

Retained earnings are the profits that the Company has earned tiLL date, Less any transfer to GeneraL Reserve,
dividends or other distributions paid to the sharehoLders.

I. Term loans

External Commercial Borrowings (ECB) From Foreign Consortium Banks

(i) ' 6,370.45 Lakhs (net of transaction cost ' 149.01 Lakhs) [previous Year ' 8,240.33 Lakhs (net of transaction
cost ' 257.98 Lakhs)], are secured by first priority exclusive charge over FuLLy Drawn Yarn spinning machinery and
equipment's thereof and personaL guarantee of promoter directors. The Loan is repayable in 20 haLf yearLy equaL
instalments that commenced from September 2018 and bear Interest at 6M Euribor 1.10% p.a.

(ii) ' 2,499.97 Lakhs (net of transaction cost ' 38.17 Lakhs) [previous Year ' 3,396.40 Lakhs (net of transaction
cost ' 75.90 Lakhs)], are secured by first priority excLusive charge over PartiaL Oriented Yarn spinning machinery
and equipment's thereof and personaL guarantee of promoter directors. The Loans are repayabLe in 14 haLf yearLy
equaL instaLments that commenced from December 2019 and bear Interest at 6M Euribor 0.80% p.a.

(iii) ' 3,286.03 Lakhs (net of transaction cost ' 93.71 Lakhs) [previous Year ' 3,897.93 Lakhs (net of transaction cost
' 138.61 Lakhs)], are secured by first priority excLusive charge over PartiaL Oriented Yarn spinning machinery and
equipment's thereof and personaL guarantee of promoter directors. The Loans are repayabLe in 16 haLf yearLy
equaL instaLments that commenced from February 2023 and bear Interest at 6M Euribor 0.88% p.a.

II. VehicLe Loan are secured by hypothecation of specific vehicLes acquired out of proceeds of the Loans. The said

Loans carry interest rate 8.85% p.a and repayabLe in 60 Equated MonthLy instaLments tiLL JuLy 2028.

III. The Company has used the borrowings from banks and financiaL institution for the specific purpose for which

it was taken at the baLance sheet date.

IV. As on the baLance sheet date, there is no defauLt in repayment of Loan and interest.

I. Working capital. Loans from consortium member banks (Punjab NationaL Bank, Bank of Baroda, Indusind Bank
Ltd and Yes Bank Ltd.) are secured by first charge by way of hypothecation of inventory of raw materials, finished
goods, semi finished goods, stores and spares, book debts and other receivables (both present and future) and first
charge on mortgage on immovable properties (save & except mortgage on vehicles and plant & machinery acquired
out of specific loan(s)) on pari passu basis. These loans are repayable on demand. Rupee working capital loan carry an
interest at 1Year MCLR to 1Year MCLR 0.25% and 3 months T-BiU plus spread aggregating not more than 9% p.a.

II. Disclosure of returns/Statements submitted by the Company to the bank on
quarterly basis in respect of borrowings: Quarterly returns or statements of current assets filed by
the Company with banks or financiaL institutions are in agreement with the books of account.

III. The Company has not been declared as wilful defaulter by any bank or financial institution or government or
any government authority.

C

i) The Company has fiLed writ petition in Gujrat High
Court at Ahmedabad on March 17, 2022 against the
demand raised by Asst. Commissioner, Bharuch for
' 2,340.87 Lakhs in respect of ITC on services in the
case of inverted duty refunds granted for the period
May 2018 to January 2021. Hon’bLe High Court has
stayed the demand. The Company is entitLed to
Input Tax credit of aLLeged excess refund even if the
case is decided against the Company. Thus, there
wouLd not be any financial impact of the same.
However, the Company may have to pay interest
which is presentLy not ascertainabLe.

ii) DGGI Surat ZonaL Unit has issued Show Cause
Notice dated January 16, 2023 raising a demand
of ' 815.81 Lakhs towards IGST amount on
deemed suppLy of services by corporate office
of the Company to other distinct persons i.e.,
manufacturing pLants of the Company in other
states on account of aLLeged vioLation of Section
74(1) of CGST Act, 2017 read with Section 20 of
IGST Act, 2017 and RuLes made thereunder. The
Company has fiLed repLy to the Show Cause Notice
on ApriL 03, 2023. AdditionaL Commissioner, CentraL
GST DeLhi East has wide order dated January 31,
2025 confirmed the demand of ' 815.81 Lakhs
together with penaLty of same amount. The
Company is in the process of fiLing appeaLs with
Commissioner AppeaLs, CGST DeLhi with in the
stipuLated time aLLowed. The Company may have to
pay interest which is presentLy not ascertainabLe.

iii) Hon’bLe Gujarat High Court vide its order dated
February 18, 2022 had quashed and set aside
the order dated JuLy 19, 2021 passed by Joint
Commissioner CGST & CentraL Excise raising

a demand for aLLeged excess GST refunds
of ' 8,537.07 Lakhs, with the direction for
reassessment. On reassessment excess refund
of ' 2,301.11 Lakhs has been determined for
the period January, 2018 to October, 2019. The
Company is in appeaL against the reassessment

orders. The Company is entitLed to Input Tax credit
of aLLeged excess refund. Thus, there wouLd not be
any financiaL impact of the same. The Company
may have to pay interest which is presentLy not
ascertainabLe.

iV) During FY 2023-24 the Company has received three
show cause notices for an aggregate amount of
' 28,771.16 Lakhs on the ground of Inverted Duty
Refunds under ruLe 89(5) of CGST RuLes, 2017
granted erroneousLy for the period January 2018 to
January 2023. The Company has fiLed writ petition
with Hon’bLe High Court of Gujarat at Ahmedabad
against each of the three show cause notices. The
Company is quiet hopefuL of a favourabLe decision
in its favour. Even in case of adverse decision the
Company wiLL be entitLed to input tax credit of the
GST amount. However, in case of an adverse order
the Company wiLL be Liable for interest.

The aforementioned amounts under disputes as
per the demands from various authorities for the
respective periods and has not been adjusted to
incLude further interest and penaLty LeviabLe, if any,
at the time of finaL outcome of the appeaLs.

* Guarantees issued by banks are secured by way of
first pari-passu charge and hypothecation of stock
and book debts of the Company.

The Company does not expect any reimbursement
in respect of the above contingent LiabiLities and it is
not practicabLe to estimate the timings of the cash
outflows, if any, in respect of the matters pending
resoLution of the appeLLate proceedings and it is
not probabLe that an outflow of resources wiLL be
required to settLe the above cLaims.

Based on the discussion with the soLicitors and
as advised, the management and Company's tax
advisors beLieves that there are fair chances of
decisions in its favour (in respect of the items Listed
in A(a) to A(d) & C above). Hence, no provision is
considered necessary against the same.

Grants relating to property, plant and equipment relate
to duty saved on import of capital, goods and spares
under the EPCG scheme. Under such scheme, the
Company is committed to export prescribed times of the
duty saved on import of capital, goods over a specified
period of time. In case such commitments are not met,
the Company wouLd be required to pay the duty saved
aLong with interest to the reguLatory authorities. The
Grant does not incLude refundable duties & taxes.

51. SHARE BASED PAYMENTS

(I) Employee Stock Option Scheme (ESOS)

- TRANCHE 3

(Refer Note No 2.14 of accounting poLicy)

The Nomination and Remuneration Committee of
the Company had at its meeting heLd on October 30,
2023, approved grant of 27,20,000 (face vaLue of
' 1/- per share) stock options (“options”) to the eLigibLe
empLoyees of the Company under the FiLatex EmpLoyee
Stock Option Scheme 2015 (FiLatex ESOS -2015), at an
exercise price of ' 48.05 per option (being the cLosing

price at NSE on October 27, 2023 i.e. immediateLy
preceding the grant date), each option being convertibLe
into one Equity Share of the Company upon vesting
subject to the Securities and Exchange Board of India
(Share Based EmpLoyee Benefits) ReguLations, 2014 and
the terms and conditions of the FiLatex ESOS 2015.

The terms and conditions of the grant as per the FiLatex
EmpLoyee Stock Option Scheme, 2015 (FiLatex ESOS
2015) are as under:

A. Vesting period

On compLetion of 2 Years from the date of grant of
options for 15%

On compLetion of 3 Years from the date of grant of
options for 20%

On compLetion of 4 Years from the date of grant of
options for 25%

On compLetion of 5 Years from the date of grant of
options for 40%

Methods and assumptions used to estimate the fair
vaLues are consistent with those used for the year ended
31^st March, 2024. The foLLowing methods/assumptions
were used to estimate the fair vaLues:

1 The carrying vaLue of Cash and cash equivalents,
trade receivabLes, trade payabLes, short-term
borrowings, other financiaL assets and financiaL
LiabiLities approximate their fair vaLue mainLy due to
the short-term maturities of these instruments.

2 The fair vaLues of investment in MutuaL funds,
quoted equity shares and ALternate investment fund
is based on the quoted price in the active market of
respective investment as at the BaLance Sheet date.

3 Derivative financiaL instruments - The fair vaLue of
forward foreign exchange contracts is determined
using the forward exchange rates at the baLance
sheet date using vaLuation techniques with inputs
that are directLy or indirectLy observabLe in the
marketpLace. The derivatives are entered into with
the banks/counterparties with investment grade
credit ratings.

4 Description of significant unobservabLe inputs to
vaLuation (LeveL 3):

The foLLowing shows the vaLuation techniques and
inputs used for Non-current financiaL instruments
that are not carried at fair vaLue:

a. Security deposits given against Lease and Lease
LiabiLities: Discounted cash flow method using
appropriate discounting rate.

b. Non-current FinanciaL assets/LiabiLities other
than above: Expected Cash FLow for the
financiaL instruments

5 Unquoted equity instruments: where most recent
information to measure fair vaLue is insufficient and
where the fair vaLue of these investments cannot
be reLiabLy measured, or if there is a wide range of
possibLe fair vaLue measurements, cost has been
considered as the best estimate of fair vaLue.

6 There has been no change in the vaLuation
methodoLogy for LeveL 3 inputs during the year.
There were no transfers between LeveL 1 and LeveL
2 during the year and no transfer into and out of
LeveL 3 fair vaLue measurements.

II. Financial Risk Management Objectives
and Policies

The Company’s activities expose it to a variety of
financiaL risks nameLy market risk, credit risk and
Liquidity risk. The Company’s primary risk management
focus is to minimize potentiaL adverse effects of market
risk on its financiaL performance. The Company’s risk
management assessment and poLicies and processes are
estabLished to identify and anaLyse the risks faced by the
Company, to set appropriate risk Limits and controLs, and
to monitor such risks and compLiance with the same.

Risk assessment and management poLicies and
processes are reviewed reguLarLy to reflect changes
in market conditions and the Company’s activities.

The Board of Directors and the Audit Committee

is responsibLe for overseeing the Company’s risk
assessment and management poLicies and processes.

The Company’s financiaL risk management poLicy is set
by the management. Market risk is the risk of Loss of
future earnings, fair vaLues or future cash flows that
may resuLt from a change in the price of a financiaL
instrument. The vaLue of a financiaL instrument may
change as a resuLt of changes in the interest rates,
foreign currency exchange rates, equity prices and
other market changes that affect market risk sensitive
instruments. The Company manages market risk which
evaLuates and exercises independent controL over
the entire process of market risk management. The
management recommends risk management objectives
and poLicies, which are approved by Senior Management
and the Audit Committee.

a) Credit Risk

Credit risk is the risk of financiaL Loss to the Company if a
customer or counterparty to a financiaL instrument faiLs
to meet its contractuaL obLigations, and arises principaLLy
from the Company’s receivabLes from customers. Credit
risk arises from cash heLd with banks as weLL as credit
exposure to cLients, incLuding outstanding accounts
receivabLe. The maximum exposure to credit risk is
equaL to the carrying vaLue of the financiaL assets.

The objective of managing counterparty credit risk is
to prevent Losses in financiaL assets. The Company
assesses the credit quaLity of the counterparties, taking
into account their financiaL position, past experience
and other factors. The Company estabLishes an
aLLowance for impairment that represents its expected
credit Losses in respect of trade and other receivabLes.
The management uses a simpLified approach for the
purpose of computation of expected credit Loss for trade
receivabLes.

The Company’s exposure to credit risk is influenced
mainLy by the individuaL characteristics of each
customer. The demographics of the customer, incLuding
the defauLt risk of the industry and country, in which
the customer operates, aLso has an influence on credit
risk assessment. Credit risk is managed through credit
approvaLs, estabLishing credit Limits, continuousLy
monitoring the credit worthiness of customers to which
the Company grants credit terms in the normaL course
of business and through reguLar monitoring of conduct
of accounts. The Company aLso hoLds security deposits
for outstanding trade receivabLes which mitigate the
credit risk to some extent.

An impairment anaLysis is performed at each reporting
date on an individuaL basis for major customers
and foLLows simpLified approach for recognition of
impairment Loss aLLowance. The history of trade
receivabLes shows a negLigibLe provision for bad and
doubtfuL debts. The management beLieves that no
further provision is necessary in respect of trade
receivabLes based on historicaL trends of these
customers. Further, the Company's exposure to
customers is diversified and no singLe customer has
significant contribution to trade receivabLe baLances.

c) Market Risk

Market risk is the risk of Loss of future earnings, fair vaLues or future cash flows that may resuLt from adverse changes
in market rates and prices (such as interest rates, foreign currency exchange rates and commodity prices) or in the
price of market risk-sensitive instruments as a result of such adverse changes in market rates and prices. Market
risk is attributable to aLL market risk-sensitive financial instruments and aLL short term and long-term debt. Market
risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk
and commodity risk. Financial instruments affected by market risk include loans and borrowings, deposits, FVTPL
investments, trade payables, trade receivables, derivative financial instruments and other financial instruments. The
Company is exposed to market risk primarily related to foreign exchange rate risk, interest rate risk and the market
value of its investments. Thus, the Company’s exposure to market risk is a function of investing and borrowing
activities.

i) Foreign exchange 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’s foreign exchange risk arises from its foreign currency borrowings
and trade receivabLes and trade payabLes denominated in foreign currencies. The resuLts of the Company’s operations
can be affected as the rupee appreciates/depreciates against these currencies. The Company enters into derivative
financiaL instruments such as foreign exchange forward contracts to mitigate the risk of changes in exchange rates on
foreign currency exposures The Company has a treasury team which monitors the foreign exchange fluctuations on a
continuous basis and advises the management of any materiaL adverse effect on the Company.

iii) Price risk

The Company invests its surpLus funds in various mutuaL funds (debt fund, equity fund, Liquid schemes and income
funds etc.), short term debt funds, Listed or unListed equity shares, government securities and fixed deposits. The
price risk arises due to uncertainties about the future market vaLues of these investments. In order to manage its
price risk arising from investments, the Company diversifies its portfoLio in accordance with the Limits set by the risk
management poLicies.

III Capital Risk Management Policies and Objectives

The Company’s objective whiLe managing capitaL is to safeguard its abiLity to continue as a going concern (so that
it is enabLed to provide returns and create vaLue for its sharehoLders, and benefits for other stakehoLders), support
business stability and growth, ensure adherence to the covenants and restrictions imposed by Lenders and/or reLevant
Laws and reguLations, and maintain an optimaL and efficient capitaL structure so as to reduce the cost of capitaL and
to maximise sharehoLders vaLue. In order to maintain or adjust the capitaL structure, the Company may adjust the
dividend payment to sharehoLders, return capitaL to sharehoLders, issue new shares, obtain new borrowings or seLL
assets to reduce debt, etc.

The Company manages its capitaL structure and makes adjustments to it, in Light of changes in economic conditions
or its business requirements and the requirements of the financiaL covenants.

The Company monitors capitaL using a gearing ratio, which is net debt divided by totaL capitaL pLus net debt. Net debt
is caLcuLated as interest bearing Loans and borrowings Less cash and cash equivaLents.

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. Breaches in meeting the financiaL covenants wouLd permit the bank to immediateLy caLL Loans and
borrowings. There have been no breaches in the financiaL covenants of any interest-bearing Loans and borrowings in
the current period.

IV. Changes in liabilities arising from financing activities as per Ind AS 7 -
Statement of cash flows

The major changes in the Company’s LiabiLities arising from financing activities are due to financing cash flows and
accruaL of financiaL LiabiLities. The Company did not acquire any LiabiLities arising from financing activities during
business combinations effected in the current period or comparative period.

The Company discLosed information about its interest-bearing Loans and borrowings. There are no obLigations under
finance Lease and hire purchase contracts.

4. Details of crypto currency or virtual
currency:

The Company has not traded or invested in Crypto
currency or Virtual. Currency during the current or
previous year.

5. Utilisation of borrowed funds and
share premium:

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 Company (ULtimate
Beneficiaries) or

(b) provide any guarantee, security or the Like to or on
behaLf of the ULtimate Beneficiaries.

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 on behaLf
of the ULtimate Beneficiaries.

6. 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.

7. Valuation of PPE, Intangible Assets
and Investment property:

The Company has not revaLued its property, pLant &
equipment (incLuding Right Of Use Assets) or intangibLe
assets or both during the current or previous year.

8. Loans/advances to specified persons:

There is no grant of Loans/advances in the nature of
Loans repayabLe on demand.

9. The Company has compLied with the number of
Layers of companies prescribed under the Companies
Act, 2013.

10. Undisclosed income:

There is no income surrendered or discLosed as
income during the current or previous year in the tax
assessments under the Income Tax Act, 1961, that has
not been recorded in the books of account.

57. Use of estimates and judgements

The preparation of financial, statements in conformity
with the recognition and measurement principles of
Ind AS requires management to make estimates and
assumptions that affect the reported amounts of assets
and Liabilities and disclosure of contingent liabilities at
the date of the financial statements and the results of
operations during the reporting period end. Although
these estimates are based upon management’s best
knowledge of current events and actions, historical
experience and other factors, including expectations of
future events that are believed to be reasonable, actual
results could differ from these estimates. The estimates
and underlying assumptions are reviewed on an ongoing
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.

A. Judgements in applying accounting
policies

The judgements, apart from those involving estimations
(see note below), that the Company has made in the
process of applying its accounting policies and that have
a significant effect on the amounts recognised in these
financial statements pertain to:

Leases:

Ind AS 116 requires lessees to determine the lease
term as the non-cancellable period of a lease adjusted
with any option to extend or terminate the lease, if the
use of such option is reasonably certain. The Company
makes an assessment on the expected lease term on
a lease-by-lease basis and thereby assesses whether
it is reasonably certain that any options to extend or
terminate the contract will be exercised. In evaluating
the lease term, the Company considers factors such
as any significant leasehold improvements undertaken
over the lease term, costs relating to the termination
of the lease and the importance of the underlying
asset to Company’s operations taking into account the
location of the underlying asset and the availability of
suitable alternatives. The lease term in future periods
is reassessed to ensure that the lease term reflects
the current economic circumstances. After considering
current and future economic conditions, the Company
has concluded that no changes are required to lease
period relating to the existing lease contracts.

Investment:

"The Company has invested more than 20% equity
capital in the power SPV's namely FPEL Sunrise Private
Limited and FP Crysta Energy Private Limited to qualify
as a captive user. As per the shareholding agreement,
the Company shall not directly or indirectly take part
in financial and operation policy decisions of the Power
SPV's.

As per Ind AS 28, If an entity holds, directly or indirectly
(e.g. through subsidiaries), 20 per cent or more of the
voting power of the investee, it is presumed that the
entity has significant influence, unless it can be clearly
demonstrated that this is not the case.

Based on the above facts, the presumption of significant

influence/participating in financial and operating decision
making is not valid even though it holds 20% or more of
the voting rights of another entity as the shareholding
by the Company is only by virtue of compliance with
electricity regulations with no intent of influencing the
operations of the power SPV's. In view of the above
investments are not considered as investment in
associates."

B. Key sources of estimation uncertainty

The following are the key assumptions concerning the
future, and other key sources of estimation uncertainty
at the end of the reporting period that may have a
significant risk of causing a material adjustment to the
carrying amounts of assets and liabilities within the next
financial year:

(i) Impairment of trade receivables:

The impairment provisions for trade receivables are
based on lifetime expected credit loss based on a
provision matrix. Lifetime expected credit losses are
the expected credit losses that result from all possible
default events over the expected life of a financial
instrument. The provision matrix takes into account
historical credit loss experience and is adjusted for
forward looking information. The expected credit loss
allowance is based on the ageing of the receivables that
are due and the rates used in the provision matrix.

The Company uses judgment in making assumptions
about risk of default and expected loss rates and
selecting the inputs to the impairments calculation,
based on the Company’s past history, existing market
conditions as well as forward looking estimates at the
end of each reporting period.

(ii) Fair value measurements of
financial instruments:

In estimating the fair value of a financial asset or a
financial liability, the Company uses market-observable
data to the extent it is available. Where active market
quotes are not available, the management applies
valuation techniques to determine the fair value
of financial instruments. This involves developing
estimates, assumptions and judgements consistent with
how market participants would price the instrument.

(iii) Actuarial Valuation:

The determination of Company’s liability towards defined
benefit obligation viz. gratuity and other long-term
employee benefit obligation viz. long term compensated
absences to employees is made through independent
actuarial valuation including determination of amounts
to be recognised in the Statement of Profit and Loss and
in other comprehensive income. Such valuation depend
upon assumptions determined after taking into account
inflation, seniority, promotion and other relevant factors
such as supply and demand factors in the employment
market. Information about such valuation is provided in
notes to the financial statements.

(iv) Claims, Provisions and Contingent

Liabilities:

The Company has ongoing Litigations with various
reguLatory authorities and third parties. Where an
outflow of funds is believed to be probable and a
reliable estimate of the outcome of the dispute can be
made based on management’s assessment of specific
circumstances of each dispute and reLevant externaL
advice, management provides for its best estimate of
the LiabiLity. Such accruaLs are by nature compLex and
can take number of years to resoLve and can invoLve
estimation uncertainty. These estimates couLd change
substantiaLLy over time as new facts emerge and each
dispute progresses. Information about such Litigations is
provided in notes to the financiaL statements.

(v) Income Taxes

Deferred tax assets are recognised for unused tax
Losses and unabsorbed depreciation carry forwards to
the extent that it is probabLe that taxabLe profit wiLL be
avaiLabLe against which the Losses/depreciation 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.

(vi) Share-based payments

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. This requires a reassessment
of the estimates used at the end of each reporting
period. The assumptions and modeLs used for estimating
fair vaLue for share-based payment transactions are
discLosed in notes to the financiaL statements.

(vii) Useful lives of property, plant
and equipment and intangible assets:

As described in the significant accounting poLicies, the
Company determines and aLso reviews the estimated
usefuL Lives of property, pLant and equipment and
intangibLe assets at the end of each reporting period.
Such Lives are dependent upon an assessment of both
the technicaL Life of the assets and aLso their LikeLy
economic Life, based on various internaL and externaL
factors incLuding reLative efficiency and operating costs.
AccordingLy, depreciabLe Lives are reviewed annuaLLy
using the best information avaiLabLe to the Management.

58. The figures for the previous years have been
regrouped and/or recLassified wherever necessary to
conform with the current year presentation.

59. No Subsequent event occurred post baLance
sheet date which requires adjustment in the standaLone
financiaL statement for the year ended March 31, 2025.

As per our report of even date

for ARUN K. GUPTA & for R.N. MARWAH & CO LLP For and on behaLf of the Board of Directors of

ASSOCIATES Firm Registration No. 001211N/ Filatex India Limited

Firm Registration No. 000605N N500019

Chartered Accountants Chartered Accountants

GIREESH KUMAR GOENKA SUNIL NARWAL MADHU SUDHAN MADHAV BHAGERIA

Partner Partner BHAGERIA Joint Managing Director

Membership No. 096655 Membership No. 511190 Chairman & Managing DIN: 00021953

Director
DIN: 00021934

Date: ApriL 23, 2025 NITIN AGARWAL RAMAN KUMAR JHA

Place: New DeLhi Chief FinanciaL Officer Company Secretary