15 Provisions, Contingent Liabilities, Contingent Assets and Commitments:

A Provisions are recognised when the Company has a present obligation as a result of
past events and it is probable that the outflow of resources will be required to settle the
obligation and in respect of which reliable estimates can be made.

When the company expects some or all of a provision to be reimbursed, for example,
under an insurance contract, the reimbursement is recognised as a separate asset, but
only when the reimbursement is virtually certain. A disclosure for contingent liability is
made when there is a possible obligation, that may, but probably will not require an
outflow of resources. When there is a possible obligation or a present obligation in
respect of which the likelihood of outflow of resources is remote, no provision/ disclosure
is made. Contingent Liabilities are not recognised but are disclosed separately in the
financial statements. Commitments include the amount of purchase order (net of
advances) issued to parties for completion of assets. Provisions, contingencies and
commitments are reviewed at each balance sheet date and adjusted to reflect the
correct management estimates.

B If the effect of the time value of money is material, provisions are discounted using a
current pre-tax rate that reflects, when appropriate, the risks specific to the liability.

16 Provision for Product Quality Claims:

Provisions for claims raised by customers for products sold by the company are made on

management estimates based on claim history and other relevant factors. The initial estimate

of the claim is revised at each reporting period.

17 Employee Benefits:

A Short term obligations:

Liabilities for wages and salaries, including leave encashments that are expected to be
settled wholly within 12 months after the end of the period in which the employees
render the related service are recognised in respect of employees’ services up to the
end of the reporting period and are measured by the amounts expected to be paid when
the liabilities are settled. The liabilities are presented as current employee benefit
obligations in the balance sheet.

B Long term employee benefits obligations:

a Defined Benefit Plans:
i Gratuity:

Liability on account of gratuity is provided for on the basis of actuarial
valuation carried out by an independent actuary as at the balance sheet

date. The contribution towards gratuity liability is funded to an approved
gratuity fund and the funds are managed by insurance companies. The
liability or asset recognised in the balance sheet in respect of defined benefit
gratuity plan is the present value of the defined benefit plan obligation at the
end of the reporting period less the fair value of the plan assets. The liability
with regard to the gratuity Plan is determined by actuarial valuation, performed
by an independent actuary, at each balance sheet date using the projected
unit credit method. The present value of the defined benefit obligation
denominated in J is determined by discounting the estimated future cash
outflows by reference to the market yields at the reporting period on
government bonds that have terms approximating to the terms of the related
obligation.

The net interest cost is calculated by applying the discounting rate to the net
balance of the defined benefit obligation and the fair value of plan assets.
Such costs are included in employee benefit expenses in the Statement of
Profit and Loss. Re-measurements gains or losses arising from experience
adjustments and changes in actuarial assumptions are recognised
immediately in the period in which they occur directly in “other comprehensive
income” and are included in retained earnings in the statement of changes
in equity and in the balance sheet.

Re-measurements gains or losses recognized in the other comprehensive
income are not reclassified to profit or loss in subsequent periods.

The Company recognises the following changes in the net defined benefit
obligation as an expense in the Statement of Profit and Loss:

i Service costs comprising current service costs and past service costs.

ii Net interest expense or income.
b Defined Contribution Plans

Contribution to provident fund is made to the provident fund administered by the
Government and is recognised as employee benefit expenses on accrual basis.

Contribution to National Pension Scheme “NPS”, which is also a defined contribution
plan, is made to NPS managed by insurance Company and is recognised as
employee benefit expenses on accrual basis.

C Employee Separation Costs:

The compensation paid to the employees under Voluntary Retirement Scheme is expensed
on accrual basis.

18 Financial Instruments:

A financial instrument is any contract that gives rise to a financial asset of one entity and a
financial liability or equity instrument of another entity.

A Financial assets:

a Initial recognition and measurement:

All financial assets are recognised initially at fair value plus in the case of financial
assets not recorded at fair value through profit or loss, transaction costs that are
attributable to the acquisition of the financial asset. Purchases or sales of financial
assets that require delivery of assets within a time frame established by regulation
or convention in the market place (regular way trades) are recognised on the
settlement date, i.e., the date that the Company settles to purchase or sell the
asset.

b Subsequent measurement:

For purposes of subsequent measurement, financial assets are classified in
following categories:

i Financial Assets at amortized cost:

A ‘financial asset’ is measured at the amortized cost if both the following
conditions are met:

- The asset is held with an objective of collecting contractual cash flows.

- Contractual terms of the asset give rise on specified dates to cash
flows that are “solely payments of principal and interest” (SPPI) on the
principal amount outstanding.

After initial measurement, such financial assets are subsequently measured
at amortized cost using the effective interest rate (EIR) method. Amortized
cost is calculated by taking into account any discount or premium on
acquisition and fees or costs that are an integral part of the EIR. The EIR
amortisation is included in finance income in the Statement of Profit and
Loss. The losses arising from impairment are recognised in the Statement
of Profit or Loss. This category generally applies to trade and other
receivables.

ii Financial Assets at fair value through other comprehensive income
(FVTOCI):

A ‘financial asset’ is classified as at the FVTOCI if both of the following
criteria are met:

- The asset is held with objective of both - for collecting contractual cash
flows and selling the financial assets.

- The asset’s contractual cash flows represent SPPI.

Financial Assets included within the FVTOCI category are measured initially
as well as at each reporting date at fair value. Fair value movements are
recognized in the OCI. However, the Company recognizes interest income,
impairment losses and reversals and foreign exchange gain or loss in the
Statement of Profit and Loss. On Derecognition of the asset, cumulative
gain or loss previously recognised in OCI is reclassified from the equity to
Statement of Profit and Loss. Interest earned whilst holding FVTOCI financial
asset is reported as interest income using the EIR method.

iii Financial Assets and derivatives at fair value through profit or loss
(FVTPL):

FVTPL is a residual category for financial assets. Any financial asset, which
does not meet the criteria for categorization as at amortized cost or as
FVTOCI, is classified as at FVTPL.

Assets included within the FVTPL category are measured at fair value with
all changes recognized in the Statement of Profit and Loss.

c Derecognition:

A financial asset (or, where applicable, a part of a financial asset) is primarily
derecognised when:

i The right to receive cash flows from the asset has expired, or

ii The Company has transferred its right to receive cash flows from the asset
or has assumed an obligation to pay the received cash flows in full without
material delay to a third party under a ‘pass-through’ arrangement and either
(a) the Company has transferred substantially all the risks and rewards of
the asset, or (b) the Company has neither transferred nor retained substantially
all the risks and rewards of the asset, but has transferred control of the
asset.

When the Company has transferred its right to receive cash flows from an
asset or has entered into a pass-through arrangement, it evaluates if and to
what extent it has retained the risks and rewards of ownership. When it has
neither transferred substantially all of the risks and rewards of the asset, nor
transferred control of the asset, the Company continues to recognise the
transferred asset to the extent of the Company’s continuing involvement. In
that case, the Company also recognises an associated liability. The transferred
asset and the associated liability are measured on a basis that reflects the
rights and obligations that the Company has retained. When the Company
has transferred the risk and rewards of ownership of the financial asset, the
same is derecognised.

d Impairment of financial assets:

In accordance with Ind AS 109, the Company applies expected credit loss (ECL)
model for measurement and recognition of impairment loss on the following financial
assets and credit risk exposure:

a Financial assets that are debt instruments, and are measured at amortized
cost.

b Trade receivables or any contractual right to receive cash or another financial
asset.

c Financial assets that are debt instruments and are measured at FVTOCI.

The Company follows ‘simplified approach’ for recognition of impairment loss
allowance on Point c provided above. The application of simplified approach does
not require the Company to track changes in credit risk. Rather, it requires the
company to recognise the impairment loss allowance based on lifetime ECLs at
each reporting date, right from its initial recognition. For recognition of impairment
loss on other financial assets and risk exposure, the Company determines whether
there has been a significant increase in the credit risk since initial recognition. If
credit risk has not increased significantly, 12-month ECL is used to provide for
impairment loss. However, if credit risk has increased significantly, lifetime ECL is
used. If, in a subsequent period, credit quality of the instrument improves such
that there is no longer a significant increase in credit risk since initial recognition,
then the entity reverts to recognising impairment loss allowance based on 12-
month ECL.

Lifetime ECL are the expected credit losses resulting from all possible default
events over the expected life of a financial instrument. The 12-month ECL is a
portion of the lifetime ECL which results from default events that are possible
within 12 months after the reporting date.

ECL is the difference between all contractual cash flows that are due to the
Company in accordance with the contract and all the cash flows that the entity
expects to receive (i.e., all cash shortfalls), discounted at the original EIR. ECL
impairment loss allowance (or reversal) recognized during the period is recognized

as income/ expense in the Statement of Profit and Loss. The balance sheet
presentation for various financial instruments is described below:

a Financial assets measured as at amortized cost and contractual revenue
receivables: ECL is presented as an allowance, i.e., as an integral part of
the measurement of those assets in the balance sheet, which reduces the
net carrying amount. Until the asset meets write-off criteria, the Company
does not reduce impairment allowance from the gross carrying amount.

b Financial guarantee contracts: ECL is presented as a provision in the balance
sheet, i.e. as a liability.

For assessing increase in credit risk and impairment loss, the Company combines
financial instruments on the basis of shared credit risk characteristics.

B Financial liabilities:

a Initial recognition and measurement:

Financial liabilities are classified, at initial recognition, as financial liabilities at fair
value through profit or loss, loans and borrowings, payables, or as derivatives
designated as hedging instruments in an effective hedge, as appropriate. All
financial liabilities are recognised initially at fair value and, in the case of loans,
borrowings and payables, net of directly attributable transaction costs.

b Subsequent measurement:

Subsequently, all financial liabilities are measured as amortized cost except for
financial guarantee contracts, as described below:

i Loans and borrowings:

After initial recognition, interest-bearing loans and borrowings are
subsequently measured at amortized cost using the EIR method. Gains and
losses are recognised in Statement of Profit or Loss when the liabilities are
derecognised as well as through the EIR amortisation process. Amortized
cost is calculated by taking into account any discount or premium on
acquisition and fees or costs that are an integral part of the EIR. The EIR
amortisation is included as finance costs in the Statement of Profit and Loss.

Non interest-bearing non-convertible redeemable Debentures issued by the
company, which are to be redeemed at a premium which is calculated
based on project IRR as per terms of debentures, are subsequently measured
at fair value through profit and loss (FVTPL).

c Derecognition:

A financial liability is derecognised when the obligation under the liability is
discharged or cancelled or expires. When an existing financial liability is replaced
by another from the same lender on substantially different terms, or the terms of
an existing liability are substantially modified, such an exchange or modification
is treated as the derecognition of the original liability and the recognition of a new
liability. The difference in the respective carrying amounts is recognised in the
Statement of Profit and Loss.

C Reclassification of financial assets:

The Company determines classification of financial assets and liabilities on initial
recognition. After initial recognition, no reclassification is made for financial assets which
are equity instruments and financial liabilities. For financial assets which are debt
instruments, a reclassification is made only if there is a change in the business model

for managing those assets. Changes to the business model are expected to be infrequent.
The Company’s senior management determines change in the business model as a
result of external or internal changes which are significant to the Company’s operations.
If the Company reclassifies financial assets, it applies the reclassification prospectively
from the reclassification date, which is the first day of the immediately next reporting
period following the change in business model as per Ind AS 109.

D Offsetting 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 realise the assets and
settle the liabilities simultaneously.

19 Derivative Financial Instruments:

Derivatives are recognised initially at fair value and subsequently at fair value through profit
and loss.

20 Earnings per Share:

Basic earnings per share are calculated by dividing the net profit or loss (excluding other
comprehensive income) for the year attributable to equity shareholders by the weighted average
number of equity shares outstanding during the year. The weighted average number of equity
shares outstanding during the year is adjusted for events such as bonus issue, bonus element
in a right issue, shares split and reverse share splits (consolidation of shares) that have
changed the number of equity shares outstanding, without a corresponding change in resources.
For the purpose of calculating diluted earnings per share, the net profit or loss (excluding other
comprehensive income) for the year attributable to equity shareholders and the weighted
average number of shares outstanding during the year are adjusted for the effects of all dilutive
potential equity shares.

Note: 3 - Recent pronouncements:

The 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, 2026, MCA has notified Ind AS 1 - Classification of liabilities as Current or Non-Current, Ind AS
7 - Disclosure of Supplier Finance Arrangements, Ind AS 12 - International Tax Reform (Pillar Two Model
Rules) and amendments to Ind AS 21 - Lack of Exchangeability, applicable to the Company w.e.f. April 1,
2026. The Company has reviewed the new pronouncements and based on its evaluation has determined
that it does not have any significant impact in its financial statement.

D Rights of Equity Share holders

(a) Holder of equity shares is entitled to one vote per share.

(b) The Company declares and pays dividends in Indian Rupees. The Companies Act, 2013 provides
that dividend shall be declared only out of the profits of the relevant year or out of the profits of
any previous financial year(s) after providing for depreciation in accordance with the provisions of
the Act and the Company may transfer such percentage of its profits for that financial year as it
may consider appropriate to the reserves of the Company.

(c) In case of inadequacy or absence of profits in any year, the Company may declare dividend out
of free reserves subject to the condition that the rate of dividend shall not exceed average of the
rates at which dividend was declared by the Company in three years immediately preceding that
year.

(d) In the event of Liquidation of the Company, the holders of equity shares shall be entitled to receive
the remaining assets of the Company, after distribution of all preferential amounts. The amount
distributed will be in proportion to the number of equity shares held by the shareholders.

A Securities and Terms of Repayment for Secured Long Term Borrowings:

A Preference Shares

i. Terms of redemption :

1% redeemable non-cumulative preference shares of J 100/- each fully paid to be redeemed
at par at the end of 20 years from the date of allotment. The Company has an option to
redeem the preference shares at par at any time after the end of 12 months from the date of
allotment.

ii. Rights of Preference Shareholders:

(a) As per Section 47(2) of the Companies Act, 2013, Preference Shareholders shall have
right to vote only on resolutions placed before company which directly affect their rights
attached to preference shares and any resolution for winding up of the company or for
repayment or reduction of share capital shall be deemed directly to affect their rights.

(b) Voting rights of the preference shareholders shall be in the same proportion as the paid
up preference share capital bears to the paid up equity share capital.

(c) Where the dividend in respect of a class of preference shares has not been paid for a
period of two years or more, such class of preference shareholders shall have a right to
vote on all the resolutions placed before the company.

B Securities and Major Terms of Convertible Debentures

(i) The company has issued 5,500 (previous year 4,500) Unlisted, Secured, Unrated, Redeemable,
Rupee Denominated, Non-Convertible Debentures (“the debentures”) of J 1,00,000/- each on
private placement basis to part-finance the Company’s Project of High-rise Residential
Apartments in the name of ‘The Sovereign’.

During the year, the Company exercised its Call Option for partial redemption of the said
debentures not by cancellation of debentures, but by reduction in paid-up value of the existing
NCDs. Accordingly, J 2825 Lacs were redeemed during the financial year. As at March 31,
2026, the aggregate outstanding principal of the said debentures stands at J 2675 Lacs.

Major Terms of the debentures :

1 Security: The debentures are secured by creation of a first charge on the (a) Project Land
(b) FSI thereof and the (c) Project put up/ being put up thereon, in favour of debenture
trustee for the benefit of the debenture holders by execution and registration of Deed of
Mortgage.

2 No interest is payable on the debentures.

3 Redemption and premium on redemption: On the completion of the project or 7 years from
the date of allotment of debentures, whichever is earlier, the Company shall redeem the
debentures along with premium (if applicable) to be calculated in a manner that the
debenture holders receive premium which is equivalent to an IRR on the Debenture
Subscription Amount which is equal to the “Project IRR” as specified in the terms of
debentures. The premium on redemption, including partial redemptions, will be computed
and paid at the end of the tenure of the NCDs. The Company, at any time after completion
of 12 months from the date of allotment, shall have an option to partially or fully redeem
the debentures.

4 The debentures have been carried at fair value.

(ii) The Company had issued 5,000 (previous year 5,000) Unlisted, Secured, Unrated, Redeemable,
Rupee Denominated, Non-Convertible Debentures (“the debentures”) of J 1,00,000/- each on
private placement basis for financing the working capital requirements of the Company. During
the year, the Company exercised its Call Option for early redemption of the said debentures.
Accordingly, 4,500 NCDs aggregating to J 4500 Lacs were redeemed on July 14, 2025 and
the balance 500 NCDs aggregating to J 500 Lacs were redeemed on September 2, 2025. With
Lacsthe aforesaid redemptions, all 5,000 NCDs aggregating to J 5000 Lacs issued to Subahu
Enterprises LLP have been fully redeemed during the year and no further NCDs remain
outstanding under this series.

(iii) During the year, the Company has issued 12,000 (previous year Nil) Unlisted, Secured, Unrated,
Redeemable, Rupee Denominated, Non-Convertible Debentures (“the debentures”) of
J 1,00,000/- each on private placement basis, comprising of two tranches - 5,000 NCDs
allotted on July 21, 2025 aggregating to J 5000 Lacs and 7,000 NCDs allotted on July 31,
2025 aggregating to J 7000 Lacs aggregating in total to J 12000 Lacs.

Major Terms of the debentures :

1 Security: The debentures are secured by creation of a first charge on the Non-Agricultural
Land in favour of debenture trustee for the benefit of the debenture holder by execution
and registration of Deed of Mortgage in compliance with the provisions of applicable laws.

2 Interest is payable to debenture holders @ 7.50% per annum, due on March 31, every
year.

3 Redemption : At the end of 9 (Nine) years from the respective dates of allotment of
Debentures with Put Option. The subscriber has a Put Option after the end of 2 (Two)
years from the date of allotment, for redemption of Debentures in part or full. In case of
any delay in the payment of interest and/or principal amount on the respective due dates,
the Issuer shall be liable to pay additional interest at the rate of 1% per annum for the
period of delay.

4 The debentures have been carried at amortised cost.

C Unsecured Loan

The unsecured loans include J 750 Lacs in the suspense account representing amount of a
cheque drawn on HDFC Bank given by the company to Bank of Bahrain & Kuwait (“BBK”) and
amount credited to BBK by RBI clearing house because of the delay by HDFC Bank in returning
the cheque to BBK.

The Debt Recovery Tribunal (“DRT”), vide its order dated June 30, 2017 directed BBK (Defendant
No. 1) and the Company (Defendant No.2) jointly and severally to pay the suit amount of J 914.23
Lacs with further simple interest @12% per annum on principal amount of J 750 Lacs.

Meanwhile, as part of recovery proceedings filed by HDFC Bank for a decretal amount of J 2070.45
lacs, the Recovery Officer (“RO”) passed orders dated March 29, 2019 and April 9, 2019 allowing
the application of HDFC Bank for the said decretal amount and inter alia also directed attachment
of certain immovable properties of the Company situated at Ahmedabad, Kadi and Mumbai.

The Company filed a writ petition at Hon’ble High Court of Bombay challenging the aforesaid two
orders of RO dated March 29, 2019 and April 9, 2019. The Hon’ble Bombay High Court vide an
Order dated November 22, 2019 allowed the Company to pursue its said appeal at the Hon’ble
DRAT. The Hon’ble High Court also suspended the warrant of attachment against Company’s
immovable properties and RO’s order dated March 29, 2019 till the Company’s appeal is decided
by the Hon’ble DRAT. The said appeal has been heard and Order dated April 26, 2024 has been
passed by the Hon’ble DRAT remanding the matter back to the DRT with directions to consider
the question of jurisdiction raised by the Company in the OA together with other issues afresh.

Having taken into consideration the Order passed by the Hon’ble High Court of Bombay and the
subsequent Order passed by the Hon’ble DRAT, the Hon’ble Recovery Officer has passed Order
on June 19, 2024 for lifting the said attachment on immoveable properties of the Company situated
at Ahmedabad, Kadi and Mumbai. At present there is no attachment by DRT on any properties of
the Company.

HDFC Bank filed a writ petition at the Hon’ble High Court of Bombay challenging the Order dated
April 26, 2024 passed by the Hon’ble DRAT and the Hon’ble High Court of Bombay has by Order
dated February 20, 2025 given directions to the Hon’ble DRAT to hear and decide the Appeal filed
by the Company without remanding them back to the DRT.

The Appeal filed by the Company will be heard and decided in due course by the Hon’ble DRAT.

Note: 36 - Disclosures as required by Ind AS 19 Employee Benefits :

The Company has classified various benefits provided to employees as under:-
Defined benefit plans:

Gratuity :

The Company provides for gratuity for employees as per the Code on Social Security 2020. The
gratuity plan is a funded plan administered by a Trust and the Company makes contributions to
recognised Trust. In accordance with Indian Accounting Standard 19, actuarial valuation was done in
respect of the aforesaid defined benefit plans based on the following assumptions.

Economic Assumptions

The discount rate and salary increases assumed are the key financial assumptions and should be
considered together; it is the difference or ‘gap’ between these rates which is more important than the
individual rates in isolation.

Discount Rate

The discounting rate is based on the gross redemption yield on medium to long term risk free investments.
The estimated term of the benefits/obligations works out to 2.77 years.

Salary Escalation Rate

The salary escalation rate usually consists of at least three components, viz. regular increments, price
inflation and promotional increases. In addition to this, any commitments by the management regarding
future salary increases and the Company’s philosophy towards employee remuneration are also to be
taken into account.

Note: 37 - Segment Information:

(1) Identification of Segments:

Considering the nature of the Company’s business and operations, as well as based on reviews
performed by chief operating decision maker regarding resource allocation and performance
management, the Company has identified (1) Real Estate, (2) Investment and (3) Others as reportable
segments in accordance with the requirements of Ind AS 108 -"Operating Segments".

(2) Segment revenue and results:

Revenue and expenses directly attributable to segments are reported under each reportable segment.
The expenses and income which are not directly attributable to any business segment are shown as
unallocable expenditure (net of unallocable income). Unallocated expenditure consists of common
expenditure incurred for all the segments and expenses incurred at corporate level.

(3) Segment assets and Liabilities:

Assets and liabilities that are directly attributable or allocable to segments are disclosed under each
reportable segment. Segment assets include all operating assets used by the operating segment and
mainly consist of property, plant and equipment, trade receivables, Inventories and other operating
assets. Segment liabilities primarily include trade payable and other liabilities excluding borrowings.

Common assets and liabilities which cannot be allocated to any of the business segment are shown
as unallocable assets / liabilities.

There are no transactions of inter-segment transfers.

Note: 40 - Financial Instruments:

A Fair values hierarchy:

Financial assets and financial liabilities measured at fair value in the statement of financial position are
grouped into three Levels of a fair value hierarchy. The three Levels are defined based on the observability
of significant inputs to the measurement, as follows:

Level 1 : Quoted prices [unadjusted] in active markets for financial instruments.

Level 2 : The fair value of financial instruments that are not traded in an active market is determined

using valuation techniques which maximise the use of observable market data and rely as
little as possible on entity specific estimates.

Level 3 : If one or more of the significant inputs is not based on observable market data, the
instrument is included in level 3.

The Company’s activities expose it to market risk, liquidity risk, interest risk and credit risk. This note
explains the sources of risk which the entity is exposed to and how the entity manages the risk and
the related impact in the financial statements.

Risk Management is embedded in the company’s operating framework. The Audit Committee of the
Board evaluates the Risk Management systems and the Board takes responsibility for the total process
of Risk Management in the organization, which includes framing, implementing and monitoring Risk
Management Plan.

The Company does not actively engage in the trading of financial assets for speculative purposes nor
does it write options.

The most significant financial risks to which the Company is exposed are described below:
a Credit risk:

Credit risk arises from the possibility that customer may not be able to settle its obligations as
agreed. The Company is exposed to credit risk in the event of non-payment by customers for the
installments due as per the contracts with the customers. Such receivables are subject to continuous
monitoring and regular follow-up. Possession of the units is handed over to customer only after the
entire consideration is received from the customers, hence the credit risk is insignificant.

The Company periodically assesses the financial reliability of the counter party taking into account
the financial condition, current economic trends, analysis of historical bad debts and ageing of
accounts receivable. Party-wise credit is monitored and reviewed accordingly.

Bank deposits:

The company maintains its Cash and cash equivalents and Bank deposits with reputed and highly
rated banks. Hence, there is no significant credit risk on such deposits.

Trade Receivable:

The Company is exposed to credit risk in the event of non-payment by customers. Major part of
sales is made on ‘Delivery against payment’ basis, hence the credit risk is insignificant. To eliminate
credit risk further, high value sales are made by adequate coverage through Letters of Credit,
wherever possible, or against post-dated cheques. Clean credit is extended only in exceptional
cases. The Company trades with recognized and credit worthy customers. It is the Company’s
policy that all customers who wish to trade on credit terms are subjected to scrutiny and periodic
review. In addition, receivable balances are monitored on an on-going basis with the result that the
Company’s exposure to bad debts is not significant.

Further, credit risk concentration with respect to trade receivables is mitigated by the Company’s
large customer base, widely distributed both economically and geographically. Adequate expected
credit losses are recognized as per the assessments based on historic data and prevalent market
conditions.

Against doubtful trade receivables of J 60 Lacs (Previous year - J 45 Lacs), allowance for doubtful
receivables is J 60 Lacs as at March 31, 2026 (Previous year - J 45 Lacs).

a Liquidity risk is the risk that the Company may not be able to meet its present and future cash
and collateral obligations without incurring unacceptable losses.
b Management monitors rolling forecasts of the Company’s liquidity position and cash and cash
equivalents on the basis of expected cash flows. The Company takes into account the liquidity
of the market in which it operates. In addition, the Company’s liquidity management policy
involves considering the level of liquid assets necessary to meet these obligations.
c Maturities of financial liabilities:

The tables below analyse the Company’s financial liabilities into relevant maturity groupings
based on their contractual maturities for all non-derivative financial liabilities.

c Interest rate risk:

Interest rate risk is the risk that the fair value of future cash flow of the financial instrument may
fluctuate because of change in market interest rates.

The Company’s policy is to minimise interest rate cash flow risk exposures on long-term financing.
As at March 31, 2026, the Company is not exposed to changes in market interest rates through
borrowings as all its borrowings are at fixed interest rate. Also, the Company opts for investments
in Fixed Deposits at fixed interest rates.

d Price risk:

The Company has no significant exposure to price risk arising from investments in mutual funds,
as the investments are usually in debt funds. Investing in equity shares of companies is based on
the concept of value investing. While these investments is subject to various risks, stringent norms
for investment decisions are in place for minimising risks associated to such investments.

Note: 42 - Capital Management:

The Company’s capital management objectives are:
a to ensure the Company’s ability to continue as a going concern.

b to provide an adequate return to shareholders.

c maintain an optimal capital structure to reduce the cost of capital.

Management assesses the Company’s capital requirements in order to maintain an efficient overall financing
structure while avoiding excessive leverage. This takes into account the subordination levels of the Company’s
various classes of debt. The Company manages the capital structure and makes adjustments to it in the
light of changes in economic conditions and the risk characteristics of the underlying assets.

Note: 43 - Social Security, 2020 (‘Code’) - New Labour Codes:

On November 21, 2025, the Government of India notified and brought into effect the four Labour Codes,
namely the Code on Wages, 2019, the Code on Social Security, 2020, the Industrial Relations Code, 2020
and the Occupational Safety, Health and Working Conditions Code, 2020, which, inter alia, introduced a
revised definition of “wages” and rationalise various employee-related legislations. Based on the available
information, including revised Labour Codes, draft rules, clarifications and FAQs issued by the Ministry of
Labour and Employment, the Company has assessed the impact of revision in the definition of wages as
per the new Codes and has accounted for additional past service cost of J 29 lacs, based on actuarial
valuation of gratuity liability, which has been treated as part of employee cost. The Company continues to
monitor the finalisation of Central and State Rules and any further clarifications issued by the Government,
and will account for additional impact, if any, in the period in which such changes become effective.

Note: 44 - Previous year’s figures regrouped:

Previous period figures have been regrouped, re-classified and re-arranged wherever considered necessary
to confirm to the current year’s classification

Note: 45 - Discontinued operation:

As per Ind AS 105 “Discontinued Operation”, the cotton textile operations of the Company, are considered
as Discontinued Operations and the financials are presented for Continuing Operations, with profitability of
the Discontinued Operations disclosed as a separate line item.

Note: 46 - Other Statutory Information:

a The company does not hold any benami property as defined under Benami Transactions (Prohibition)
Act, 1988 (45 of 1988) and the rules made thereunder. No proceeding has been initiated or pending
against the Company for holding benami property under the Benami Transactions (Prohibition) Act,
1988 (45 of 1988) and the rules made thereunder.

b The company has not entered into any transaction with Struck off companies under section 248 of
Companies Act, 2013 or section 560 of Companies Act, 1956. Further, there is no balance outstanding
with struck off companies.

c The company does not have any charges or satisfaction, which is yet to be registered with ROC
beyond the statutory period.

d The Company has not traded or invested in crypto currency or virtual currency during the financial year.

e The Company does not have any such 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).

f The company is in compliance with number of layers prescribed under clause (87) of section 2 of
Companies Act read with the companies (Restriction on number of layers) Rules, 2017.

g As on March 31, 2026 there are no unutilised amounts in respect of any long term borrowings from
banks and financial institutions. The borrowed funds have been utilised for the specific purpose for
which the funds were raised.