i. Provision for Current and Deferred Tax

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the
Income-tax Act, 1961.

Deferred tax resulting from "timing difference" between taxable and accounting income is accounted for using the tax
rates and laws that are enacted or substantively enacted as on the balance sheet date. Deferred tax asset is recognized
and carried forward only to the extent that there is a virtual certainty that the asset will be realized in future.

j. Provisions

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation

as a result of past events and it is probable that there will be an outflow of resources will be required to settle the
obligation and a reliable estimate can be made. Provisions are not discounted to its present value and are determined
based on best estimate required to settle the obligation at the Balance sheet date. These are reviewed at each reporting
date and adjusted to reflect the current best estimates.

k. Earnings per Share

Basic earnings per share is calculated by dividing the net profit after tax by the weighted average number of equity
shares outstanding during the year adjusted for bonus element in equity share. Diluted earnings per share adjust the
figures used in determination of basic earnings per share to take into account the conversion of all dilutive potential
equity shares. Dilutive potential equity shares are deemed converted as at the beginning of the period unless issued at
a later date.

l. Segment reporting

A) Primary Business Segments:

The Company's Operations currently comprise of one segment i.e. manufacturing of textiles.

B) Secondary Business Segments:

• The company operate its business at single a place and the function of company is such that the company cannot
be classified into segments as per IND AS 108.

m. Contingent Liability:

Disclosure of contingent liability is made when there 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 where it is either not probable
that an outflow of resources embodying economic benefits will be required to settle or a reliable estimate of amount
cannot be made.

n. Financial Instruments
i. Financial Assets

A. Initial Recognition and Measurement

All Financial Assets are initially recognised at fair value. Transaction costs that are directly attributable to the acquisition
or issue of Financial Assets, which are not at Fair Value Through Profit or Loss, are adjusted to the fair value on initial
recognition. Purchase and sale of Financial Assets are recognised using trade date accounting. However, trade
receivables that do not contain a significant financing component are measured at transaction price.

Subsequent Measurement

a) Financial Assets measured at Amortised Cost (AC)

A Financial Asset is measured at Amortised Cost if it is held within a business model whose objective is to hold the asset
in order to collect contractual cash flows and the contractual terms of the Financial Asset give rise to cash flows on
specified dates that represent solely payments of principal and interest on the principal amount outstanding.

b) Financial Assets measured at Fair Value Through Other Comprehensive Income (FVTOCI)

A Financial Asset is measured at FVTOCI if it is held within a business model whose objective is achieved by both
collecting contractual cash flows and selling Financial Assets and the contractual terms of the Financial Asset give rise
on specified dates to cash flows that represents solely payments of principal and interest on the principal amount
outstanding.

c) Financial Assets measured at Fair Value Through Profit or Loss (FVTPL)

A Financial Asset which is not classified in any of the above categories are measured at FVTPL. Financial assets are
reclassified subsequent to their recognition, if the Company changes its business model for managing those financial
assets. Changes in business model are made and applied prospectively from the reclassification date following the
changes in business model in accordance with principles laid down under Ind AS 109 - Financial Instruments.

C. Investment in Subsidiaries, Associates and Joint Ventures

The Company has accounted for its investments in Subsidiaries, associates and joint venture at cost less impairment
loss (if any).

D. Other Equity Investments

All other equity investments are measured at fair value, with value changes recognised in Statement of Profit and Loss,
except for those equity investments for which the Company has elected to present the value changes in 'Other
Comprehensive Income'. However, dividend on such equity investments arerecognised in Statement of Profit and loss
when the Company's right to receive payment is established.

. Impairment of Financial Assets

In accordance with Ind AS 109, the Company uses 'Expected Credit Loss' (ECL) model, for evaluating impairment of
Financial Assets other than those measured at Fair Value Through Profit and Loss (FVTPL), limited to measurement trade
receivables. Expected Credit Losses are measured through a loss allowance at an amount:

• equal to 20 % of those receivables who are outstanding beyond 180 days (limited to within 365 days) of the bill date;

• equal to 50 % of those receivables who are outstanding beyond 365 days (limited to within 720 days) of the bill date;

• equal to 100% of those receivables who are outstanding beyond 720 days (expected credit losses that result from all
possible default events over the life of the financial instrument).

For Trade Receivables the Company applies 'simplified approach' which requires expected lifetime losses to be
recognised from initial recognition of the receivables. The Company uses historical default rates to determine

impairment loss on the portfolio of trade receivables. At every reporting date these historical default rates are reviewed
and changes in the forward-looking estimates are analyzed.

ii. Financial Liabilities

A. Initial Recognition and Measurement

All Financial Liabilities are recognized at fair value and in case of borrowings, net of directly attributable cost. Fees of
recurring nature are directly recognized in the Statement of Profit and Loss as finance cost.

B. Subsequent Measurement

Financial Liabilities are carried at amortized cost using the effective interest method. For trade and other payables
maturing within one year from the balance sheet date, the carrying amounts approximate fair value due to the short
maturity of these instruments.

iii. Derecognition of Financial Instruments

The Company derecognizes a Financial Asset when the contractual rights to the cash flows from the Financial Asset
expire or it transfers the Financial Asset and the transfer qualifies for derecognition under Ind AS 109. A Financial liability
(or a part of a Financial liability) is derecognized from the Company's Balance Sheet when the obligation specified in the
contract is discharged or cancelled or expires.

Offsetting

Financial Assets and Financial Liabilities are offset and the net amount is presented in the balance sheet when, and only
when, the Company has a legally enforceable right to set off the amount and it intends, either to settle them on a net
basis or to realise the asset and settle the liability simultaneously.

o. Non Current Asset Held for Sale

Non current asset or disposal groups comprising of asset and liabilities are classified as 'held for sale' when all the
following criteria are met:

i) decision has been made to sell ,

ii) the asset are available for immediate sale in its present condition ,

iii) the asset are being actively marketed and

iv) sale has been agreed or is expected to be concluded with in 12 months of the balance sheet.

Subsequently , such non current assets and disposal groups classified as 'held for sale' are measured at the lower of its
carrying value and fair value less costs to sell. Non Current assets held for sale are not depreciated or amortised.

For and on Behalf of
Rajiv Shah & Associates

Rajiv C Shah( Partner) Chartered Accountants

FRN No:108454W

M.No.:043261 UDIN:25043261BMKYZA6293

Place: Ahmedabad

Date:26.05.2025