2.15 Provisions, Contingent Liabilities and Contingent Assets

Based on the best estimate provisions are recognized
when there is a present obligation (legal or constructive) as
a result of a past event and it is probable ("more likely than
not") that it is required to settle the obligation, and a reliable
estimate can be made of the amount of the obligation at
reporting date.

A contingent liability is a possible obligation that arises
from a past event, with the resolution of the contingency

dependent on uncertain future events, or a present
obligation where no outflow is probable. Major contingent
liabilities are disclosed in the financial statements unless
the possibility of an outflow of economic resources is
remote.

Contingent assets are not recognized in the financial
statements but disclosed, where an inflow of economic
benefit is probable.

2.16 Measurement of Fair Value

a) Financial instruments

The estimated fair value of the Company's financial
instruments is based on market prices and valuation
techniques. Valuations are made with the objective to
include relevant factors that market participants would
consider in setting a price, and to apply accepted economic
and financial methodologies for the pricing of financial
instruments. References forless active markets are carefully
reviewed to establish relevant and comparable data.

b) Marketable and non-marketable equity securities

Fair value for quoted securities is based on quoted market
prices as of the reporting date. Fair value for unquoted
securities is calculated based on commonly accepted
valuation techniques utilizing significant unobservable
data, primarily cash flow based models. If fair value cannot
be measured reliably unlisted shares are recognized at cost.

2.17 Financial Instruments
a. Financial AssetsInitial recognition and measurement

All financial assets are recognised initially at fair value, 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.

Classifications

The Company classifies its financial assets as subsequently
measured at either amortised cost or fair value depending
onthe company's business model for managing the financial
assets and the contractual cash flow characteristics of the
financial assets.

Financial assets at amortised cost

A financial asset is measured at amortised cost only if both
of the following conditions are met:

- it is held within a business model whose objective is to
hold assets in order to collect contractual cash flows.

- the contractual terms of the financial asset represent
contractual cash flows that are solely payments of
principal and interest.

After initial measurement, such financial assets are
subsequently measured at amortised cost using the
Effective Interest Rate ('EIR') method. Amortised 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 income
in the Statement of Profit and Loss. The losses arising from
impairment are recognised in the Statement of Profit and
Loss.

Financial assets at fair value through Other Comprehensive
Income (FVOCI)

Financial assets with contractual cash flow characteristics
that are solely payments of principal and interest and
held in a business model whose objective is achieved by
both collecting contractual cash flows and selling financial
assets are classified to be measured at FVOCI.

Financial assets at fair value through profit and loss (FVTPL)

Any Financial assets, which does not meet the criteria for
categorization as at amortized cost or as FVOCI, is classified
as at FVTPL.

In addition, the company may elect to classify a Financial
assets, which otherwise meets amortized cost or FVOCI
criteria, as at FVTPL. However, such election is allowed
only if doing so reduces or eliminates a measurement
or recognition inconsistency (referred to as 'accounting
mismatch').

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

Equity Instruments

All equity instruments in scope of Ind AS 109 are measured
at fair value. On initial recognition an equity investment
that is not held for trading, the Company may irrevocably
elect to present subsequent changes in fair value in OCI.
This election is made on an investment-by-investment
basis.

All other Financial Instruments are classified as measured
at FVTPL.

Derecognition of financial assets

A financial asset (or, where applicable, a part of a financial
asset or part of a group of similar financial assets) is
primarily derecognised (i.e. removed from the company's
balance sheet) when:

- The rights to receive cash flows from the asset have
expired, or

- The company has transferred its rights 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 rights 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 nor retained substantially all
of the risks and rewards of the asset, nor transferred
control of the asset, the company continues to recognize
the transferred asset to the extent of the company's
continuing involvement. In that case, the company also
recognizes 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.

Continuing involvement that takes the form of a guarantee
over the transferred asset is measured at the lower of the
original carrying amount of the asset and the maximum
amount of consideration that the company could be
required to repay.

On derecognition of a financial asset, the difference
between the carrying amount of the asset (or the carrying
amount allocated to the portion of the asset derecognised)
and the sum of (i) the consideration received (including any
new asset obtained less any new liability assumed) and (ii)
any cumulative gain or loss that had been recognised in OCI
is recognised in the Statement of Profit and Loss.

Impairment of financial assets

The Company assesses on a forward looking basis the
expected credit losses associated with its assets carried at
amortised cost and FVOCI. The impairment methodology
applied depends on whether there has been a significant
increase in credit risk.

With regard to trade receivable, the Company applies the
simplified approach as permitted by Ind AS 109, Financial
Instruments, which requires expected lifetime losses to
be recognised from the initial recognition of the trade
receivables.

b. Financial liabilitiesInitial recognition and measurement

Financial liabilities are classified, at initial recognition,
as financial liabilities at fair value through profit or loss,
amortised cost, as appropriate.

All financial liabilities are recognised initially at fairvalue and,
in the case of amortised cost, net of directly attributable
transaction costs.

Subsequent measurement

The measurement of financial liabilities depends on their
classification, as described below:

Financial Liabilities measured at amortised cost

After initial recognition, interest-bearing loans and
borrowings are subsequently measured at amortised cost
using the EIR method. Gains and losses are recognised in
profit or loss when the liabilities are derecognised as well as
through the EIR amortisation process.

Amortised 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.

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit and
loss include financial liabilities designated upon initial
recognition as at fair value through profit and loss.

Gains or losses on liabilities held for trading are recognised
in the Statement of Profit and Loss.

Financial liabilities designated upon initial recognition at
fair value through profit and loss are designated as such
at the initial date of recognition, and only if the criteria in
Ind AS 109 are satisfied. For liabilities designated as FVTPL,
fair value gains/ losses attributable to changes in own
credit risk are recognized in OCI. These gains/ loss are not
subsequently transferred to the Statement of Profit and
Loss. However, the Company may transfer the cumulative
gain or loss within equity. All other changes in fair value of

such liability are recognised in the Statement of Profit and
Loss.

Derecognition of financial liabilities

The Company derecognises a financial liability when its
contractual obligations are discharged or cancelled, or
expired.

2.18 Income Tax

Income tax expense comprises current and deferred tax.
It is recognised in the Statement of Profit and Loss except
to the extent that it relates to items recognised directly in
Equity or in Other Comprehensive Income.

Current tax

Current tax comprises the expected tax payable or
receivable on the taxable income or loss for the year and
any adjustment to the tax payable or receivable in respect
of previous years. It is measured using tax rates enacted or
substantively enacted at the reporting date. Current tax
assets and liabilities are offset only if, the Company:

a) Has a legally enforceable right to set off the recognised
amounts; and

b) Intends either to settle on a net basis, or to realise the
asset and settle the liability simultaneously.

Deferred tax

Deferred tax is recognised on differences between the
carrying amounts of assets and liabilities in the balance
sheet and the corresponding tax bases used in the
computation of taxable profit. Deferred tax liabilities
are generally recognised for all taxable temporary
differences. Deferred tax assets are generally recognised
for all deductible temporary differences to the extent it
is probable that taxable profits will be available against
which those deductible temporary differences can be
utilised. Such assets and liabilities are not recognised if
the temporary difference arises from initial recognition
of goodwill or from the initial recognition (other than in a
business combination) of other assets and liabilities in a
transaction that affects neither the taxable profit nor the
accounting profit.

The carrying amount of deferred tax assets is reviewed at
each balance sheet date and reduced to the extent that it
is no longer probable that sufficient taxable profits will be
available to allow all or part of the asset to be recovered.

Deferred tax assets and liabilities are measured at the tax
rates that are expected to apply in the period in which the
liability is settled or the asset realised, based on tax rates
(and tax laws) that have been enacted or substantively
enacted by the balance sheet date.

2.19 LeasesThe Company as lessor

Leases for which the Company is a lessor are classified as
finance or operating leases. Whenever the terms of the
lease transfer substantially all the risks and rewards of
ownership to the lessee, the contract is classified as finance
lease. All other leases are classified as operating leases.

Rental income from operating leases is recognised on
a straight-line basis over the term of the relevant lease.
Initial direct costs incurred in negotiating and arranging an
operating lease are added to the carrying amount of the
leased asset and recognised on a straight-line basis over
the lease term.

The Company as lessee

The Company assesses whether a contract is or contains a
lease, at inception of the contract. The Company recognises
a right-of-use asset and a corresponding lease liability
with respect to all lease arrangements in which it is the
lessee, except for short-term leases (defined as leases with
a lease term of 12 months or less) and leases of low value
assets. For these leases, the Company recognises the lease
payments as an operating expense on a straight-line basis
over the lease term, unless another systematic basis is
more representative of the time pattern in which economic
benefits from the leased assets are consumed. Contingent
and variable rentals are recognized as expense in the
periods in which they are incurred.

Lease Liability

The lease payments that are not paid at the commencement
date are discounted using the interest rate implicit in the
lease. If that rate cannot be readily determined, which is
generally the case for leases in the Company, the lessee's
incremental borrowing rate is used, being the rate that the
individual lessee would have to pay to borrow the funds
necessary to obtain an asset of similar value to the right-
of-use asset in a similar economic environment with similar
terms, security and conditions.

Lease payments included in the measurement of the lease
liability comprise:

• Fixed lease payments (including in-substance fixed
payments) payable during the lease term and under
reasonably certain extension options, less any lease
incentives;

• Variable lease payments that depend on an index or
rate, initially measured using the index or rate at the
commencement date;

• The amount expected to be payable by the lessee
under residual value guarantees;

• The exercise price of purchase options, if the lessee is
reasonably certain to exercise the options; and

• Payments of penalties for terminating the lease, if
the lease term reflects the exercise of an option to
terminate the lease.

The lease liability is presented as a separate line in the
Balance Sheet.

The lease liability is subsequently measured by increasing
the carrying amount to reflect interest on the lease liability
(using the effective interest method) and by reducing the
carrying amount to reflect the lease payments made.

The Company remeasures the lease liability (and makes
a corresponding adjustment to the related right-of-use
asset) whenever:

• The lease term has changed or there is a change in the
assessment of exercise of a purchase option, in which
case the lease liability is remeasured by discounting
the revised lease payments using a revised discount
rate.

• A lease contract is modified and the lease modification
is not accounted for as a separate lease, in which case
the lease liability is remeasured by discounting the
revised lease payments using a revised discount rate.

Right of Use (ROU) Assets

The ROU assets comprise the initial measurement of the
corresponding lease liability, lease payments made at or
before the commencement day and any initial direct costs.
They are subsequently measured at cost less accumulated
depreciation and impairment losses.

Whenever the company incurs an obligation for costs to
dismantle and remove a leased asset, restore the site on
which it is located or restore the underlying asset to the
condition required by the terms and conditions of the lease,
a provision is recognised and measured under Ind AS 37-

Provisions, Contingent Liabilities and Contingent Assets.
The costs are included in the related right-of-use asset.

ROU assets are depreciated over the shorter period of
the lease term and useful life of the underlying asset. If
the company is reasonably certain to exercise a purchase
option, the right-of-use asset is depreciated over the
underlying asset's useful life. The depreciation starts at the
commencement date of the lease.

The ROU assets are not presented as a separate line in the
Balance Sheet but presented below similar owned assets as
a separate line in the PPE note under "Notes forming part of
the Financial Statement".

The Company applies Ind AS 36- Impairment of Assets
to determine whether a right-of-use asset is impaired
and accounts for any identified impairment loss as per its
accounting policy on 'property, plant and equipment.

As a practical expedient, Ind AS 116 permits a lessee not to
separate non-lease components when bifurcation of the
payments is not available between the two components,
and instead account for any lease and associated non¬
lease components as a single arrangement. The Company
has used this practical expedient.

Extension and termination options are included in many of
the leases. In determining the lease term the management
considers all facts and circumstances that create an
economic incentive to exercise an extension option, or not
exercise a termination option.

2.20 Earning per share

The basic EPS is computed by dividing the profit after tax
for the year attributable to the equity shareholders by the
weighted average number of equity shares outstanding
during the year

For the purpose of calculating diluted EPS, profit after tax
for the year attributable to the equity shareholders and the
weighted average number of equity shares outstanding
during the year are adjusted for the effects of all dilutive
potential equity shares. Dilutive potential equity shares
are deemed converted as of the beginning of the period,
unless they have been issued at a later date. In computing
the dilutive earnings per share, only potential equity shares
that are dilutive and that either reduces the earnings per
share or increases loss per share are included.

2.21 Cash and Cash Equivalents

Cash and cash equivalents comprise cash at bank and in
hand and short-term deposits with an original maturity of
three months or less.

For the purposes of the Cash Flow Statement, cash and
cash equivalents is as defined above, net of outstanding
bank overdrafts. In the balance sheet, bank overdrafts are
shown within borrowings in current liabilities.

2.22 Government Grants and Subsidies

Grants from the government are recognised at their fair
value where there is reasonable assurance that the grant
will be received and the Company will comply with all
attached conditions.

Government grants that compensate the Company for
expenses incurred are recognised in the Statement of
Profit and Loss, as income or deduction from the relevant
expense, on a systematic basis in the periods in which the
expense is recognised.

When the government grant relates to the non-monetary
asset where there is reasonable assurance that the grant
will be received, the asset is disclosed by deducting the
same from carrying amount of that asset and the grant is
then recognised in profit or loss over the useful life of the
depreciable asset by way of a reduced depreciation charge.
Other Government grants relating to the purchase of plant
and equipment are included in noncurrent liabilities as
deferred income and are credited to the statement of Profit
and Loss on a straight - line basis over the expected lives of
related assets and presented within other income.

2.23 Segment Reporting

Operating segments are reported in a manner consistent
with the internal reporting provided to the chief operating
decision maker. The board of directors of the Company has
been identified as being the chief operating decision maker
by the Management of the Company.The Business activityof
the company falls within one business segment viz "Textile".

2.24 Recent Amendments

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. In August 2025, MCA notified the following
amendments to the existing standard:

provide guidance when an entity breaches any covenant of
a long-term loan arrangement on or before the end of the
reporting period with the effect that the liability becomes
payable on demand, it classifies the liability as current,
even if the lender agreed, after the reporting period and
before the approval of the financial statements for issue,
not to demand payment as a consequence of the breach.
An entity classifies the liability as current because, at the
end of the reporting period, it does not have the right to
defer its settlement for at least 12 months after that date.
However, an entity classifies the liability as non-current
if the lender agreed by the end of the reporting period to
provide a period of grace ending at least 12 months after
the reporting period, within which the entity can rectify
the breach and during which the lender cannot demand
immediate repayment. This amendment is to be applied
retrospectively for annual reporting periods beginning on
or after April 1, 2026, in accordance with Ind AS 8, Accounting
Policies, accounting Estimates and Errors.

The Company has considered these amendments and
expects that there will be no impact on the financial
statements.

3.1 a) Depreciation is provided on fixed assets over the remaining useful life in accordance with the provisions of Schedule II of the

Act.

b) Property, Plant and Equipment given as security for borrowings (Refer note 18 & 23).

c) Certain machinery at SPFY unit are hypothecated to Director of Industries Himachal Pradesh towards capital subsidy
received from them.

d) During the year, borrowing cost amounting to '6.88 (' Nil) directly attributable to the acquisition of fixed assets are
capitalized by the Company and work in progress as part of the cost of the assets up to the date of such asset is ready for its
intended use.

3.2 a) Capital work-in-progress ageing schedule for the year ended March 31, 2026:

Rights, preferences and restrictions attached to Equity Shares:

The Company has one class of Equity Shares having a par value of '10 per share. Each shareholder is eligible for one vote per share held.
The dividend, if any, proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General
Meeting. In case of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of
all preferential amounts, in proportion to their shareholding.

18.1 Term Loan from bank of '2,248.59 are secured by first pari passu charge over fixed assets of the Company both present & future
and are further secured by second charge over current assets of the Company, by personal guarantee of Chairman and a Director
of the Company and pledge of company's certain shares by promoter and promoter group firms. This loan is repayable in monthly
instalments ending November 2028 and presently carries interest @8.50% p.a..

18.2 Term Loans from bank of '44.28 are secured by first pari passu charge over current assets of the Company and further secured by
second pari passu charge over fixed assets of the Company both present & future with other term lenders, by personal guarantee
of the Chairman of the Company. This loan is repayable in monthly instalments ending March 2027 and carries interest @7.5% p.a..

18.3 Term Loan from bank of '370.00 are secured by first pari passu charge over fixed assets of the Company both present & future
secured by personal guarantee of Chairman and a Director of the Company . This loan is repayable in monthly instalments ending
March 2033 and presently carries interest @8.65% p.a..

18.4 Term Loan from Banks of '138.34 are secured by hypothecation of respective vehicles financed.

18.5 Term Loan from Tata Capital of '579.09 is secured by exclusive charge on certain machineries financed by them. This loan is
repayable in monthly instalments ending September 2028 and presently carries interest @12.2% p.a.

18.6 Term Loan from Orix Leasing & Financial Services India Limited of '410.08 is secured by exclusive charge on certain machineries
financed by them. This loan is repayable in monthly instalments ending February 2030 and presently carries interest @11.95% p.a.

23.1 Cash Credit Loans are secured by first pari passu charge by hypothecation of stocks, book debts and second pari passu charge
on all fixed assets, both present and future and further secured by personal guarantee of the Chairman and a Director of the
Company.

23.2 Inter Corporate Deposits include '310.31 taken from related enterprises.

40 Disclosure of Deferred Government Grants/Subsidies

a) '93.63 ('20.36) accounted as Deferred Government Grants for duty saved on import/purchase of capital goods and spares
under the Export Promotion Capital Goods (EPCG) scheme. EPCG scheme allows import of certain capital goods including
spares at concessional duty subject to an export obligation for the duty saved on capital goods imported under EPCG
scheme. Under the scheme, the company is committed to export goods at the prescribed times of 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. Such grants recognised are released to the Statement of
Profit & Loss based on fulfillment of related export obligations.

b) Under the Package Scheme of Incentive 2019 approved by the Government of Maharashtra, the Company is entitled to
industrial promotion subsidy to the extent of 80% of the fixed capital investment or to the extent of taxes paid to the State
Government and certain expenses paid in next 10 years from the date of commercial production, whichever is lower. During
the year, subsidy receivable under the above scheme aggregating to '139.25 ('280.26) has been recognised in the Statement
of Profit & Loss.

c) The Company is entitled to capital subsidy under TUFS scheme under State Textile Policy 2018-23. The Company has
recognised the capital subsidy of '1,779.16 ('Nil) with the Government of Maharashtra for the expansion made in earlier year,
in accordance with Ind AS 20 "Accounting for Government Grants and Disclosure of Government Assistance". The Company
has deducted subsidy receivable from Gross Cost of the respective machinery and has accounted for subsidy amortization
as deduction from depreciation cost.

d) The SPFY Division of the Company has received/has become entitled to receive an electricity duty rebate subsidy of '635.45
lakhs ('Nil) in respect of the expansion undertaken in earlier years, pursuant to approval granted by the Himachal Pradesh
Electricity Regulatory Commission (HPERC). Out of the total subsidy, '454.43 lakhs pertains to earlier financial years and has
accordingly been recognized under Other Income during the current year.

42 Employee benefits

The Company contributes to the following post-employment defined benefit plans in India.

(i) Defined Contribution Plans:

The Company makes contributions towards provident fund to a defined contribution retirement benefit plan for qualifying
employees. Under the plan, the Company is required to contribute a specified percentage of payroll cost to the retirement
benefit plan to fund the benefits. During the year the Company has contributed to Government Provident Fund '165.75
('165.81).

(ii) Defined Benefit Plan:

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in
continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination
is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number
of years of service.

The most recent actuarial valuation of plan assets and the present value of the defined benefit obligation for gratuity were
carried out as at March 31, 2026. The present value of the defined benefit obligations and the related current service cost and
past service cost, were measured using the Projected Unit Credit Method.

Sensitivities due to mortality and withdrawals are insignificant, hence ignored. Sensitivities as to rate of inflation, rate of increase of
pensions in payment, rate of increase of pensions before retirement and life expectancy are not applicable being a lump sum benefit
on retirement.

Although the analysis does not take account of the full distribution of cash flows expected under the plan, it does provide an
approximation of the sensitivity of the assumptions shown.

F. Description of Risk Exposures:

Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such Company is exposed to
various risks as follow -

A) Salary Increases- Higher than expected increase in salary will increase the defined benefit obligation.

B) Discount Rate: Reduction in discount rate in subsequent valuations can increase the plan's liability.

C) Mortality & disability - Actual deaths & disability cases proving lower or higher than assumption in the valuation can impact
the liabilities.

44 Pioneer Embroideries Limited Employee Stock Option Plan 2018 Scheme (ESOP)

The Company has granted stock options under the Pioneer Embroideries Limited Employee Stock Option Plan 2018 Scheme
(ESOP) to the eligible employees of the Company. Under ESOP, the company has granted 3,99,864 options on August 12, 2024.
100% of total options granted would vest in after one year from the date of grant subject to fulfilment of vesting conditions. The
maximum period for exercise of options is three year from the date of vesting. Each option when exercised would be converted
into one fully paid-up equity share of '10 each of the Company. The options granted under ESOP carry no rights to dividends and
voting rights till the date of exercise.

@ The exercise price shall be decided by NRC subject to maximum discount of 50% of the closing market price on the stock exchange,
which records the highest trading volume in the Company's equity shares on the date immediately prior to the date on which the notice
of exercise is given to the Company by the employee. In any event, the exercise price shall not be less than face value of the equity
share.

B. Fair value hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are:

(a) recognised and measured at fair value and

(b) measured at amortised cost and for which fair values are disclosed in the financial statements.

To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial
instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the
table.

The carrying amounts of the abovementioned financial assets and financial liabilities are considered to be the same as their fair values,
due to their short-term nature.

II. Financial risk management

The Company has exposure to the following risks arising from financial instruments:

- credit risk;

- liquidity risk; and

- market risk

i. Risk management framework

The Company's board of directors has overall responsibility for the establishment and oversight of the Company's risk
management framework. The board of directors has established the processes to ensure that executive management
controls risks through the mechanism of properly defined framework.

The Company's risk management policies are established to identify and analyse the risks faced by the Company, to set
appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems
are reviewed by the board annually to reflect changes in market conditions and the Company's activities. The Company,
through its training and management standards and procedures, aims to maintain a disciplined and constructive control
environment in which all employees understand their roles and obligations.

The Company's Audit Committee oversees compliance with the Company's risk management policies and procedures,
and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The Audit
Committee is assisted in its oversight role by Internal Audit. Internal Audit undertakes both regular and ad hoc reviews of
risk management controls and procedures, the results of which are reported to the Audit Committee.

ii. 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.

The carrying amount of financial assets represents the maximum credit exposure. The Company monitor credit risk very
closely both in domestic and export market. The Management impact analysis shows credit risk and impact assessment as low.

Trade and other receivables

The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer. However,
management also considers the factors that may influence the credit risk of its customer base, including the default risk of
the industry and country in which customers operate.

The Company Management has established a credit policy under which each new customer is analyzed individually for
creditworthiness beforethe Company's standard paymentand deliveryterms and conditions are offered.The Company's review
includes market check, industry feedback, pastfinancialsandexternal ratings,iftheyare available.Sale limits areestablished for
each customerand reviewed periodically.Anysales exceeding those limits require approval from the President ofthe Company.

More than 60 % of the Company's customers have been transacting with the Company for over four years, and no impairment
loss has been recognized against these customers. In monitoring customer credit risk, customers are reviewed according to
their credit characteristics, including whether they are an individual or a legal entity, their geographic location, industry and
existence of previous financial difficulties.

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.

(a) Financing arrangements

The bank overdraft facilities may be drawn at any time and may be terminated by the bank without notice. Subject to the
continuance of satisfactory credit ratings, the bank loan facilities may be drawn at any time in indian rupee and have an
average maturity within a year.

(b) Maturities of financial liabilities

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross
and undiscounted, and exclude contractual interest payments and the impact of netting agreements.

iii. Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial
liabilities that are settled by delivering cash or another financial asset. The Company's approach to managing liquidity is to
ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are fallen due, under both normal
and stressed conditions, without incurring unacceptable losses or risking damage to the Company's reputation. Prudent
liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding
through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions.
Due to the dynamic nature of the underlying businesses, Company treasury maintains flexibility in funding by maintaining
availability under committed credit lines.

Management monitors rolling forecasts of the Company's liquidity position (comprising the undrawn borrowing facilities)
and cash and cash equivalents on the basis of expected future cash flows. This is generally carried out at unit level and
monitored through corporate office of the Company in accordance with practice and limits set by the Company. These limits
vary by location to take into account requirement, future cash flow and the liquidity in which the entity operates. In addition,
the Company's liquidity management strategy involves projecting cash flows in major currencies and considering the level
of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory
requirements and maintaining debt financing plans.

iv. Market risk

Market risk is the risk that changes in market prices - such as foreign exchange rates and interest rates - will affect the Company's
income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control
market risk exposures within acceptable parameters, while optimizing the return.

The Company uses derivatives like forward contracts to manage market risks on account of foreign exchange. All such transactions
are carried out within the guidelines set by the Board of Directors.

v. Currency risk

The Company is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the
USD and small exposure in EUR and GBP. Foreign exchange risk arises from future commercial transactions and recognised
assets and liabilities denominated in a currency that is not the company's functional currency (INR). The risk is measured
through a forecast of highly probable foreign currency cash flows. The objective of the hedges is to minimise the volatility
of the INR cash flows of highly probable forecast transactions by hedging the foreign exchange inflows on regular basis.

Currency risks related to the principal amounts of the Company's foreign currency payables, have been partially hedged using
forward contracts taken by the Company.

In respect of other monetary assets and liabilities denominated in foreign currencies, the Company's policy is to ensure that its
net exposure is kept to an acceptable level by buying or selling foreign currencies at spot rates when necessary to address short¬
term imbalances.

Exposure to currency risk

The summary quantitative data about the Company's exposure to currency risk as reported to the management of the Company
is as follows:

Interest rate risk

The Company's main interest rate risk arises from long-term borrowings with variable rates, which expose the Company to cash flow
interest rate risk. During March 31, 2026 and March 31, 2025, the Company's borrowings at variable rate were denominated in Indian
Rupees.

Currently the Company's borrowings are within acceptable risk levels, as determined by the management, hence the Company has not
taken any swaps to hedge the interest rate risk.

Exposure to interest rate risk

The interest rate profile of the Company's interest-bearing financial instruments as reported to the management of the Company is as
follows:

Fair value sensitivity analysis for fixed-rate instruments

The Company does not account for any fixed-rate financial assets or financial liabilities at fair value through profit or loss. Therefore, a
change in interest rates at the reporting date would not affect profit or loss.

46 a. Balances of certain trade receivables, advances, trade payables and other liabilities are in the process of confirmation and/or

reconciliation.

b. Realisable value of current assets, deposits, loans and advances in the ordinary course of business will be at least equal to the

amount at which they have been stated in the financial statements.

47 Corporate Social Responsibility (CSR)

As per Section 135 of Companies Act, 2013, a Company needs to spend at least 2% of its average net profit for the immediately
preceding three financial years on Corporate Social Responsibility (CSR) activities. The Company has incurred '8.46 ('Nil)
expenditure on CSR during the year on the activities as specified in Schedule VII of the Companies Act, 2013 in pursuant of the CSR
policy.

48 Segment Reporting

According to Ind AS 108, identification of operating segments is based on Chief Operating Decision Maker (CODM) approach for
making decisions about allocating resources to the segment and assessing its performance. The business activity of the company
falls within one broad business segment viz. "Textile" and substantially sale of the product is within the country. The Gross income
and profit from the other segment is below the norms prescribed in Ind AS 108. Hence, the disclosure requirement of Ind AS 108 of
'Segment Reporting' is not considered applicable.

49 Capital Management

The Company's policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain
future development of the business. Management monitors the return on capital as well as the level of dividends to ordinary
shareholders. The following table summarises the capital of the Company :

53 Additional Regulatory Information

(i) The Company has not been declared willful defaulter by any bank or financial institution or any other lender.

(ii) The Company does not have any transactions with the companies struck off under Companies Act 2013 or Companies Act
1956.

(iii) No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

(iv) The Company has not revalued its property, plant and equipment (including Right-of- Use Assets) or intangible assets or
both during the current or previous financial year.

(v) The Company has complied with the number of Layers prescribed under the Companies Act, 2013.

(vi) There is no undisclosed income under the Income Tax Act, 1961 for the current year or previous year which needs to be
recorded in the books of account.

(vii) The Company has not traded or invested in crypto currency or virtual currency during the current or previous financial
year.

(viii) The Company do not have charges or satisfaction which are yet to be registered with the Registrar of Companies beyond the
statutory period.

(ix) The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources
or kind of funds) to any other person(s) or entity(ies) including foreign entities ("Intermediaries") with the understanding
that the intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries).
The Company has not received any funds from any other person(s) or entity(ies) including foreign entities with the
understanding that the company shall directly or indirectly lend or invest in other persons or entities identified by or on
behalf of the Company (""Ultimate Beneficiaries"") or provide any guarantee, security or the like to or on behalf of the Ultimate
Beneficiaries.

(x) The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous
financial year.