Provisions involving substantial degree of estimation in measurement, are recognized when the present
obligation of or past events gives rise to a probable outflow embodying economic benefits on settlement
and the amount of obligation can be reliably estimated. A contingent liability is a possible obligation that
arises from past events whose existence will be confirmed by tire occurrence or non-occurrence of one or
more uncertain future events beyond the control of the company or a present obligation that is not
1 ecognized because it is not probable that an outflow of resources will Jpe-^rwired to settle the-obligation.

Contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized
because it cannot be measured reliably. The contingent liability to be reported for the year have been
reported in accordance with the requirement, if any. Contingent Assets are neither recognised nor
disclosed in the Financial Statements. Provisions and Contingent Liabilities are reviewed at each Balance
Sheet date and adjusted to reflect the current best estimates.

R. Segment Reporting:

(a) Business Segments:

Based on the guiding principles given in Accounting Standard 17 (AS -17) on Segment Reporting issued
by ICAI, the Company has only one reportable Business Segment, which is Manufacturing of Saree.

Accordingly, tire figures appearing in these financial statements relate to tire Company's single Business
Segment.

(b) Geographical Segments:

The Company activities / operations are confined to India and as such there is only one geographical
segment. Accordingly, tire figures appearing in these financial statements relate to the Company's single
geographical segment.

S. Prior Period Items:

Piioi Period and Extraordinary items and Changes in Accounting Policies having material impact on tire
financial affairs of tire Company are disclosed in financial statements.

T. Events Occurring after Balance Sheet dates:

No significant events which could affect the financial position during tire year to a material extent have
been reported by tire Assesse, after the balance sheet date till the signing of report.

b) me Government of India has notified the Code on Wages, 2019, the Industrial Relation Code,
2020, the Code on Social Security, 2020 and the Occupational Safety, Health, and Working
Conditions Code, 2020 ("Labour Codes") with effect from 21/11/2025, which consolidates 29
existing labour laws. The Labour Codes, amongst other things, introduce changes, including a
uniform definition of wages and enhanced benefits relating to leave. The Company continues to
monitor the developments relating to the implementation of Labour Codes and will review the
estimates as further classification and Rules are notified.

31. The Company is yet to receive balance confirmations in respect of certain trade payable, trade
receivables and unsecured loans availed by the Company. The Management does not expect any
material difference affecting the current period's standalone financial statements due to the same.

33. EARNING PER SHARE:

Earnings per Share is calculated by dividing the Profit after Tax, attributable to the Equity Shareholders
by the weighted average number of Equity Shares Outstanding during the year as below

Note: The Board of Directors of the Company has approved the issue of 1,38,34,059 Bonus Equity Shares
to its existing shareholders in the ratio of 424:100 (i.e. 424 new Bonus Equity Share of face value of Rs.
10/- each on existing 100 Equity Share of face value of Rs. 10/- each) in its meeting held on September
28, 2024 and the same was approved by the Shareholders of the Company on September 28, 2024.
Accordingly, 1,38,34,059 Bonus Equity Shares were issued and allotted on October 16, 2024 and hence,
Basic & Diluted Earnings Per Share has been adjusted against for the current and previous periods and
presented in accordance with AS 20, "Earnings Per Share".

34. DEFERRED TAXATION:

In view of Accounting Standards 22 "Accounting for Taxes on Income" [Companies accounting
Standard rules 2006 as amended notified under sec 211 (3c)]. Reversal of Deferred Tax Liability for
die year ended amounting to Rs. 5.88 Lakhs/- (P.Y. Rs. 8.27 Lakhs/-) has been recognized in the
Profit & Loss Account.

38. IPO Expenses:

The Company has incurred an amount of ? 297.10 lakhs as IPO Expenses. These expenses pertain to
he pioposed Initial Public Offering (IPO) of the Company and include, but are not limited to:

• Advances paid to Merchant Bankers and other intermediaries

• Auditor s fees specifically related to IPO certification and reporting

• Legal and professional charges

• Filing fees and other regulatory costs

In accordance with applicable accounting standards and provisions of the Companies Act, 2013
(including Section 52(2)(c)), these expenses are considered capital in nature and is adjusted against the
Securities Premium Account on successful completion of the Initial Public Offering (IPO) No portion
of these expenses has been routed through the Profit and Loss account during the period.

39. Trade Payables includes Rs. 237.23 Lakhs (PY: 261.64 Lakhs) due to micro and small enterprises
covered under The Micro, Small and Medium Enterprises Development Act, 2006" (MSMED) to
the extent such parties have been identified from the available information.

40. Other Regulatory Information:

(i) The company does not have any proceedings initiated or are pending against the company for

holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and
rules made thereunder.

(ii) The Company has not traded or invested in Crypto currency during the financial period.

(hi) The company has neither been declared as a wilful defaulter nor has received any show cause
notice from any bank or financial institution or government or any government authority.

(iv) The Company does not own any immovable property whose title deeds are not registered in the
name of the Company.

(v) I he Company does not have transactions with any shuck off company during the period.

(vi) The Company has not filed any Scheme of Arrangements in terms of sections 230 to 237 of the
Companies Act, 2013 with any Competent Authority.

^^U\^{The Company does not have an}Y ^such transaction which is not recorded in the books of accounts
that has been surrendered or disclosed as income during the year ended March 31, 2026 and March 31,

2025 in the tax assessments under the Income Tav iqai t, ,

relevant provisions of the Income Tax Act, 1961). ' ^SeaiCh °^{r SUrVey or} *** ^other

(viu) Utilisation of Borrowed Fund & Share Premium

guaiantee, security or the like on behalf of the ultimate beneficiaries ^{P 16 &Ry}

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(ix) No satisfaction or charge is pending for registration with registrar of companies.

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