అకౌంట్స్ గమనికలుIRIS Clothings Ltd.

0) Provisions, contingent
liabilities and contingent assets:

Provisions are recognised only when:

1) a Company entity has a present obligation (legal or construc¬
tive) as a result of a past event; and

ii) it is probable that an outflow of resources embodying eco¬
nomic benefits will be required to settle the obligation; and

iii) a reliable estimate can be made of the amount of
the obligation

Provision is measured using the cash flows estimated to settle
the present obligation and when the effect of time value of
money is material, the carrying amount of the provision is the
present value of those cash flows. Reimbursement expected in
respect of expenditure required to settle a provision is recog¬
nised only when it is virtually certain that the reimbursement
will be received.

Contingent liability is disclosed in case of:

i) a present obligation arising from past events, when it is not
probable that an outflow of resources will be required to settle
the obligation; and

ii) a present obligation arising from past events when no reli¬
able estimate is possible.

Contingent assets are disclosed where an inflow of economic
benefits is probable. Provisions, contingent liabilities, and con¬
tingent assets are reviewed at each Balance Sheet date.

Where the unavoidable costs of meeting the obligations under
the contract exceed the economic benefits expected to be re¬
ceived under such contract, the present obligation under the
contract is recognised and measured as a provision.

?) Commitment:

Commitments are future liabilities for contractual expenditure,
classified and disclosed as follows:

a) estimated amount of contracts remaining to be executed on
capital account and not

provided for.

b) uncalled liability on shares and other investments
partly paid.

?) funding related commitment to associate companies; and

d) other non-cancellable commitments, if any, to the extent
they are considered material and relevant in the opinion
of management.

Other commitments related to sales/procurements made in the
normal course of business are not disclosed to avoid exces¬
sive details.

q) Statement of cash flows:

Statement of cash flows is prepared segregating the cash
flows into operating, investing and financing activities. Cash
flow from operating activities is reported using indirect method
adjusting the net profit for the effects of:

i) changes during the period in operating receivables and
payables transactions of a non-cash nature;

ii) non-cash items such as depreciation, provisions, deferred
taxes, unrealised gains and losses; and

iii) all other items for which the cash effects are investing or fi¬
nancing cash flows.

Cash and cash equivalents (including bank balances) shown in
the Statement of Cash Flows exclude items which are not
available for general use as on the date of Balance Sheet.

r) Earnings per share

The Company presents basic and diluted earnings per share
data for its ordinary shares. Basic earnings per share is calcu¬
lated by dividing the profit or loss attributable to ordinary share¬
holders of the Company by the weighted average number of
ordinary shares outstanding during the year.

Diluted earnings per share is determined by adjusting the profit
or loss attributable to ordinary shareholders and the weighted
average number of ordinary shares outstanding, adjusted
for own shares held, for the effects of all dilutive potential
ordinary shares.

(i) New and amended standards
adopted by the Company

The Ministry of Corporate Affairs vide notification dated May 7,
2025 and August 13, 2025 notified the Companies (Indian
Accounting Standards) Amendment Rules, 2025 and
Companies (Indian Accounting Standards) Second
Amendment Rules, 2025, respectively, which amended certain
accounting standards (see below), and are effective for annual
reporting periods beginning on or after April 1,2025:

(a) Classification of Liabilities as Current or Non-current and
Non-Current Liabilities with Covenants - Amendments to Ind
AS 1

As a result of the adoption of the amendments to Ind AS 1, the
Company changed its accounting policy for the classification
of borrowings:

“Borrowings are classified as current liabilities unless, at the
end of the reporting period, the Company has a right to defer
settlement of the liability for at least 12 months after the report¬
ing period. Covenants that the Company is required to comply
with, on or before the end of the reporting period, are consid¬
ered in classifying loan arrangements with covenants as
current or non-current. Covenants that the Company is
required to comply with after the reporting period do not affect
the classification.”

This new policy did not result in a change in the classification
of the Company''s borrowings. The Company did not make
retrospective adjustments as a result of adopting the
amendments to Ind AS 1.

(b) Supplier Finance Arrangements -Amendments to Ind AS 7
and Ind AS 107

As a result of the adoption of the amendments to Ind AS 7 and
Ind AS 107, the Company provided new disclosures for liabili¬
ties under supplier finance arrangements in note 16.

(c) International Tax Reform -Pillar Two Model Rules -
Amendments to Ind AS 12

The Company is not within the scope of the OECD Pillar
Two Model Rules, as Pillar Two legislation has not yet
been enacted in any of the jurisdictions in which the
Company operates.

(d) Lack of Exchangeability - Amendments to Ind AS 21

The amended Ind AS 21 have added requirements to help en¬
tities to determine whether a currency is exchangeable into an¬
other currency, and the spot exchange rate to use where it is
not. These amendments did not have any material impact on
the amounts recognised in prior periods and are not expected
to significantly affect the current or future periods.

(ii) New standards or amendments not yet adopted

Classification of Liabilities as Current or Non-current and Non¬
Current Liabilities with Covenants - Amendments to Ind AS 1 -

This amendment also includes specific provisions that will take
effect for reporting periods beginning on or after April 1, 2026,
as outlined below.

Under the existing Ind AS 1, where there is a breach of a mate¬
rial provision of a long-term loan arrangement on or before the
end of the reporting period with the effect that the liability be¬
comes payable on demand on the reporting date, the entity
does not classify the liability as current, if the lender agreed,
after the reporting period and before the approval of the finan¬
cial statements for issue, not to demand payment as a conse¬
quence of the breach. However, the amended requirements
stipulate that entities will no longer be permitted to consider
lender waivers that are granted after the reporting date but be¬
fore the financial statements are approved for the purpose of
classification of loans. This amendment is required to be ap¬
plied retrospectively in accordance with Ind AS 8. The
Company does not expect this amendment to have an impact
on its operations or financial statements.

CWIP ageing (as at 31 March 2026, ? Lakhs): Projects in progress — less than 1 year 699.02; 1-2 years, 2-3 years, more than 3
years — nil. Projects temporarily suspended — nil. There is no project whose completion is overdue or has exceeded its cost com¬
pared to the original plan during 2025-26 or 2024-25. The Company has not revalued its property, plant and equipment, intangible
assets or right-of-use assets during 2025-26 or 2024-25.

Notes: (1) The Company has only one class of shares, equity shares of ?2/- par value; each holder is entitled to one vote per
share. (2) On liquidation, holders of equity shares are entitled to receive the remaining assets of the Company after distribution of
all preferential amounts (no preferential amounts currently exist), in proportion to shares held.

(3) The Company raised ?4,758.28 Lakhs through a Rights Issue of 1,35,95,105 equity shares at ?35/- each (including premium of
?33/-), allotted on 24 April 2025. (4) The Company allotted 9,51,65,735 Bonus Equity Shares in the ratio 1:1 to members on 7 July
2025 (previously, 1,16,52,947 Bonus Equity Shares were allotted in the ratio 5:2 on 17 October 2020).

Note 34 — Disclosure under Ind AS 19, Employee Benefits

Defined Contribution Plans. The Company has certain defined contribution plans; contributions are made to provident fund in
India for employees at 12% of basic salary as per regulations, to a registered provident fund administered by the Government. The
Company''s obligation is limited to the amount contributed, with no further contractual or constructive obligation.

Defined Benefit Plan. The Company has a defined benefit gratuity plan, governed by the Social Security Code 2020 (effective
21/11/2025; earlier under the Payment of Gratuity Act, 1972). Every employee completing five or more years of service receives
gratuity at 15 days'' salary (last drawn) for each completed year of service. The plan is funded.

Note 35 — Segment Information (Ind AS 108)

Operating segments are components of the Company whose operating results the Chief Operating Decision Maker (the Managing
Director) regularly reviews to allocate resources and assess performance, and for which discrete financial information is available.
The Company is engaged primarily in the business of manufacturing & trading of readymade garments only; considering risks and
returns, organisation structure and internal reporting, all operations and non-current assets of the Company are in India.
Accordingly, there are no separate reportable segments as per Ind AS 108.

Fair Value Hierarchy

Level 1 — quoted price (unadjusted) in active markets for identical assets or liabilities. Level 2 — inputs other than quoted prices
within Level 1 that are observable, directly or indirectly. Level 3 — inputs not based on observable market data. As at 31 March
2026 and 31 March 2025, the Company has no financial assets or liabilities (investments in equity instruments, derivative financial
instruments) measured at fair value on a recurring basis at any level.

Note 39 — Financial Risk Management Objectives and Policies

The Company''s financial liabilities include loans and borrowings and trade & other payables; the main purpose of these is to fi¬
nance the Company''s operations. The Company''s financial assets include trade & other receivables, deposits and cash & cash
equivalents. The Company''s overall risk management programme focuses on the unpredictability of financial markets and seeks to
minimise potential adverse effects on financial performance. The Company does not acquire or issue derivative financial instru¬
ments for trading or speculative purposes.

Credit Risk — the risk that a counterparty may not meet its obligations under a financial instrument or customer contract.
Customer credit risk is managed by the marketing department per the Company''s established policy and procedures; the Company
reviews customer creditworthiness on an ongoing basis and estimates expected credit loss based on past data and experience.
The maximum exposure to credit risk is the carrying value of trade receivables (Note 6), as the Company holds no collateral. An
impairment analysis is performed at each reporting date, based on historical data of credit losses.

Liquidity Risk — the risk that the Company may not be able to settle its obligations at a reasonable price; managed by the finance
department with oversight from senior management, monitoring net liquidity through expected cash flows, and maintaining a bal¬
ance between continuity of funding and flexibility through cash credits and term loans.

Market Risk — the risk that the fair value of future cash flows of a financial instrument may fluctuate due to changes in market
prices (foreign exchange rates, interest rates, etc). Foreign Currency Risk relates primarily to import and export activities; the
Company monitors foreign exchange fluctuations continuously and, during the current or previous financial year, did not enter into
any derivative instruments for trading or speculative purposes and has no outstanding foreign currency exposure. Interest rate
risk relates primarily to long-term debt.

Note 40 — Capital Management

The Company''s objective when managing capital (net debt and equity) is to safeguard its ability to continue as a going concern,
provide returns to shareholders and benefits to other stakeholders, while protecting and strengthening the Balance Sheet through
an appropriate balance of debt and equity funding. Funding needs are met through equity, cash generated from operations and
short-term bank borrowings. The Company monitors capital using the gearing ratio (net debt divided by sum of capital and net
debt); there have been no breaches of financial covenants for reported periods.

Note 41 — Contribution to Political Parties

Contribution to political parties during 2025-26: ? Nil (PY ? Nil).

Note 42 — Investor Education and Protection Fund

No amounts are due and outstanding to be credited to the Investor Education & Protection Fund as at 31 March 2026.

Note 43 — Events after the Reporting Date

There have been no events after the reporting date requiring disclosure.

Note 44 — Additional Disclosures

• The Company has not revalued its Property, Plant and Equipment; disclosure regarding valuation by a registered valuer
under the Companies (Registered Valuers and Valuation) Rules, 2017 is accordingly not applicable.

• During the year, the Company has not granted any Loans or Advances in the nature of loans, repayable on demand
or without specifying terms/period of repayment, to promoters, directors and KMPs, severally or jointly with any
other person.

• No proceedings have been initiated or are pending against the Company for holding any benami property under the
Benami Transactions (Prohibition) Act, 1988 and rules made thereunder, for the financial year 2025-26.

• The Company has taken borrowings from banks/financial institutions on the basis of security of current assets; the quar¬
terly returns or statements filed with such banks/financial institutions are generally in agreement with the unaudited
books of account for the respective quarter.

• The Company has not been declared a wilful defaulter by any bank, financial institution or other lender.

• The Company has not entered into any transactions with companies struck off under Section 248 of the Companies Act,
2013 or Section 560 of the Companies Act, 1956 during the financial year ended 31.03.2026.

• The Company does not have any charges or satisfaction yet to be registered with the Registrar of Companies beyond
the statutory period.

• The Company does not have any investment through more than two layers of investment companies as per Section
2(87)(d) and Section 186 of the Companies Act, 2013.

• During the year the Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), includ¬
ing foreign entities (Intermediaries), with the understanding that the Intermediary shall lend or invest on behalf of the
Company or provide guarantee/security on behalf of Ultimate Beneficiaries.

• During the year the Company has not received any fund from any person(s) or entity(ies), including foreign entities
(Funding Party), with the understanding that the Company shall lend or invest on behalf of the Funding Party or provide
guarantee/security on behalf of Ultimate Beneficiaries.

• The Company does not have any transactions not recorded in the books of accounts during the year, nor any un¬
recorded income/related assets of earlier years recorded in the books during the year.

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

Note 47 — Regrouping of Previous Year Figures

Previous year figures are regrouped and reclassified to make them comparable with Ind AS presentation.

Note 48 — Approval of Financial Statements

The above financial statements have been reviewed by the Audit Committee and subsequently approved by the Board of Directors
at its meeting held on 11^th May 2026.

1. The Company has only one class of shares referred to as equity shares having a par value of '' 2/-. each holder of equity shares is entitled to one vote per share.

2. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts.However,no such preferential amounts exist currently.The distribution will be in proportion to the number of shares held by the shareholders.

3. Details of Share holders holding more than 5% of total shares:

32. As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, 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 areas for CSR activities are healthcare including preventive healthcare, providing safe drinking water, sanitation facility, promoting education, old age home maintenance, environmental sustainability and promotion and development of traditional art and handicrafts. A Corporate Social Responsibility Committee has been formed by the Company as per the Act.

35. Segment information as per IND AS-108

Operating segment are components of the Company whose operating results, the Chief Operating Decision Maker ("CODM”) to make decisions about resources to be allocated to the segment and assess its performance regularly review and for which discrete financial information is available.

The Company is engaged primarily on the business of "manufacturing & trading of readymade garments business” only, taking into account the risks and returns, the organization structure and the internal reporting systems. All the operations of the Company are in India. All non-current assets of the Company are located in India. Accordingly, there are no separate reportable segments as per Ind AS 108 - "Operating segments”.

36.4 The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the obligations related to lease liabilities as and when they fall due.

36.5 During the period ended March 31, 2025 the expense recognized in the statement of profit and loss includes:

(i) Rental Expenses recorded for Short-term lease '' 59.58 Lakhs for the year ended March 31,2025 (Previous Year: '' 46.61 lakhs)

(ii) Variable lease expense not forming part of lease liability of '' Nil (Previous Year: '' Nil)

Fair Value Hierarchy

Level-1 Quoted Price (unadjusted) is active markets for identical assets or liabilities

Level-2 Inputs other than quoted prices included within Level-1 that are observable for the asset or liability, either directly (i.e as prices) or indirectly (i.e.) derived from prices)

Level-3 Inputs other than quoted prices included within Level-1 that are based on non-observable market data.

The following table presents fair value hierarchy of assets and liabilities measured at fair value on a recurring basis as of March 31, 2025:

39. Financial risk management objective and policies

The Company’s financial liabilities include Loan and borrowings and Trade & other payables. The main purpose of these financial liabilities is to finance the Company’s operations. The Company’s financial assets include trade & other receivables, deposits and cash & cash equivalents.

The Company’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Company’s financial performance. The Company uses derivative financial instruments to hedge certain risk exposures. The Company does not acquire or issue derivative financial instruments for trading or speculative purposes.

A. Credit Risk- A risk that counterparty may not meet its obligations under a financial instrument or customer contract, leading to a financial loss is defined as Credit Risk. The Company is exposed to credit risk from its operating and financial activities.

Customer credit risk is managed by the respective marketing department subject to the Company’s established policy, procedures and control relating to customer credit risk management. The Company reviews the creditworthiness of these customers on an on-going basis. The Company estimates the expected credit loss on the basis of past data, experience and policy laid down in this respect. The maximum exposure to the credit risk at the reporting date is the carrying value of the trade receivables disclosed in Note 6 (Six) as the Company does not hold any collateral as security. The Company has a practice to provide for doubtful debts as per its approved policy.

An impairment analysis is performed at each reporting date on an individual basis. The calculation is based on historical data of credit losses.

The ageing analysis of the receivables (gross of allowances) has been considered from the date the invoice falls due.

B. Liquidity Risk- A risk that the Company may not be able to settle or meet its obligations at a reasonable price is defined as liquidity risks. The Company’s finance department is responsible for managing liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management. Management monitors the Company’s net liquidity position through expected cash flows.

The Company’s objective is to maintain a balance between continuity of funding and flexibility through the use of cash credits, Term loans among others.

C. Market Risk- A risk that the fair value of future cash flows of a financial instrument may fluctuate because of changes in market prices is defined as Marketing Risk. Such changes in the value of financial instruments may result from changes in the foreign currency exchange rates, interest rates, credit, liquidity and other market changes.

(i) Foreign Currency Risk- A risk that the fair value or future value of the cash flows of a forex exposure will fluctuate because of changes in foreign exchange rates is defined as Foreign Currency Risk. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s import and export activities. The Company, as per its risk management policy, uses foreign exchange and other derivative instruments primarily to hedge foreign exchange exposure. The management monitors the foreign exchange fluctuations on a continuous basis.

Derivative instruments and un-hedged foreign currency exposure:

The Company does not enter into any derivative instruments for trading or speculative purposes.

(ii) Interest rate risk- The Company’s exposure to the risk of changes in market interest rates relates primarily to long-term debt.

Maturity profile of financial liabilities

The table below provides details regarding the remaining contractual maturities of financial liabilities at the reporting date based on contractual undiscounted payments.

40. Capital management

The Company’s objective when managing capital (defined as net debt and equity) is to safeguard the Company’s ability to continue as a going concern in order to provide returns to shareholders and benefits for other stakeholders, while protecting and strengthening the Balance Sheet through the appropriate balance of debt and equity funding. The Company manages its capital structure and makes adjustments to it, in taking into consideration the economic conditions and strategic objectives of the Company.

For the purpose of the Company’s capital management, capital includes issued capital, share premium and all other equity reserves. Net debt includes, interest bearing loans and borrowings, trade and other payables less cash and short-term deposits.

In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches of the financial covenants of any interest-bearing loans and borrowing for reported periods.

Contribution to political parties during the year 2024-25 is '' Nil (previous year '' Nil)

41. There are no amounts due and outstanding to be credited to Investor Education & Protection Fund as at March 31,2025.

42. Events after the reporting period

There have been no events after the reporting date that require disclosure in financial statements.

43. Additional Disclosures:

a. The Company has not revalued its Property, Plant and Equipment accordingly disclosure as to whether the revaluation is based on the valuation by a registered valuer as defined under rule 2 of the Companies (Registered Valuers and Valuation) Rules, 2017 is not applicable to the Company.

b. During the year, the Company has not granted any Loans or Advances in the nature of loans which are either repayable on demand or without specifying any terms or period of repayment to promoters, directors and KMPs either severally or jointly with any other person

c. No proceedings have been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder, the company for the financial year 2024-25.

d. The Company has taken borrowings from banks or financial institutions on the basis of security of current assets. The quarterly returns or statements of current assets filed by the Company with such banks or financial institutions are generally in agreement with the unaudited books of account of the Company of the respective quarters.

e. The Company has not been declared as a willful defaulter by any bank or financial Institution or other lender.

f. The company has any not entered into any transactions with companies which are struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956 during the financial year ended on 31.03.2025.

g. The Company does not have any charges or satisfaction which is yet to be registered with Registrar of Companies beyond the statutory period.

h. The Company does not have any investment through more than two layers of investment companies as per section 2(87)(d) and section 186 of the Companies Act 2013.

i. During the year 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 (whether recorded in writing or otherwise) that the Intermediary shall

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries, the company.

j. During the year Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

k. The Company does not have such transaction which are not recorded in the books of accounts during the year and also there are not such unrecorded income and related assets related to earlier years which have been recorded in the books of account during the year.

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

45. Previous year figures are regrouped and reclassified to make them comparable with Ind AS presentation.

46. The above financial statements have been reviewed by the audit committee and subsequently approved by the Board of Directors at its meeting held on May 15, 2025.

(*) The Company has Split its Equity Share having Face Value of ''10 per share into 5 fully paid Equity Share having face value of ''2 each

(**) The Company has increased its number of Authorised Equity shares from 8,25,00,000 (1,65,00,000*5) shares of ''2 per share to 20,00,00,000 shares of ''2 per share at the Extra Ordinary - General Meeting dated July 27, 2023

Notes:

1. The Company has only one class of shares referred to as equity shares having a par value of ''2/-. each holder of equity shares is entitled to one vote per share.

2. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts.However,no such preferential amounts exist currently.The distribution will be in proportion to the number of shares held by the shareholders.

a) Securities Premium

Securities premium is used to record premium amount received on issue of securities. The reserve can be used for the purpose as given in provisions of the Companies Act, 2013 (the "Companies Act”).

Trade Receivables are non-interest bearing and are generally on terms of 30-90 days.

Contract assets are initially recognised for revenue earned from supplying/providing products/services, as receipt of consideration is conditional on successful completion of milestone. Upon acceptance by the customer, the amounts recognised as contract assets are reclassified to trade receivables. Contract liabilities include advances received to deliver products and invoices raised in excess of revenue to be recognised.

Notes:

The Code on Social Security, 2020 (‘Code’) relating to employee benefits during employment and post-employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period when the Code becomes effective.

28.1 Reconciliation of the Total Tax Charge

The tax charge shown in the statement of profit and loss differs from the tax charge that would apply if all profits had been charged at India’s corporate tax rate. A reconciliation between the tax expense and the accounting profit multiplied by India’s domestic tax rate for the years ended March 31, 2024 and 2023 is, as follows:

32. As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, 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 areas for CSR activities are healthcare including preventive healthcare, providing safe drinking water, sanitation facility, promoting education, old age home maintenance, environmental sustainability and promotion and development of traditional art and handicrafts. A Corporate Social Responsibility Committee has been formed by the Company as per the Act.

35. Segment information as per IND AS-108

Operating segment are components of the Company whose operating results, the Chief Operating Decision Maker ("CODM”) to make decisions about resources to be allocated to the segment and assess its performance regularly review and for which discrete financial information is available.

The Company is engaged primarily on the business of "manufacturing & trading of readymade garments business” only, taking into account the risks and returns, the organization structure and the internal reporting systems. All the operations of the Company are in India. All non-current assets of the Company are located in India. Accordingly, there are no separate reportable segments as per Ind AS 108 - "Operating segments”.

36.4 The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the obligations related to lease liabilities as and when they fall due.

36.5 During the period ended March 31,2024 the expense recognized in the statement of profit and loss includes:

(i) Rental Expenses recorded for Short-term lease '' 46,60,788 for the year ended March 31, 2024 (Previous Year: '' 36,27,000)

(ii) Variable lease expense not forming part of lease liability of '' Nil (Previous Year: '' Nil)

Fair Value Hierarchy

Level-1 Quoted Price (unadjusted) is active markets for identical assets or liabilities

Level-2 Inputs other than quoted prices included within Level-1 that are observable for the asset or liability, either directly (i.e as prices) or indirectly (i.e.) derived from prices)

Level-3 Inputs other than quoted prices included within Level-1 that are based on non-observable market data.

39. Financial risk management objective and policies

The Company’s financial liabilities includes Loan and borrowings and Trade & other payables. The main purpose of these financial liabilities is to finance the Company’s operations. The Company’s financial assets include trade & other receivables, deposits and cash & cash equivalents.

The Company’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Company’s financial performance. The Company uses derivative financial instruments to hedge certain risk exposures. The Company does not acquire or issue derivative financial instruments for trading or speculative purposes.

The Company’s activities expose it to Credit Risk, Liquidity Risk and Market Risk. The Company has a Risk management policy and its management is supported by a Risk management committee that advises on risks and the appropriate financial risk governance framework for the Company. The Risk management committee provides assurance to the Company’s management that the Company’s risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company’s policies and risk objectives. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.

A. Credit Risk- A risk that counterparty may not meet its obligations under a financial instrument or customer contract, leading to a financial loss is defined as Credit Risk. The Company is exposed to credit risk from its operating and financial activities.

Customer credit risk is managed by the respective marketing department subject to the Company’s established policy, procedures and control relating to customer credit risk management. The Company reviews the creditworthiness of these customers on an on-going basis. The Company estimates the expected credit loss on the basis of past data, experience and policy laid down in this respect. The maximum exposure to the credit risk at the reporting date is the carrying value of the trade receivables disclosed in Note 6 (Six) as the Company does not hold any collateral as security. The Company has a practice to provide for doubtful debts as per its approved policy.

An impairment analysis is performed at each reporting date on an individual basis. The calculation is based on historical data of credit losses.

B. Liquidity Risk- A risk that the Company may not be able to settle or meet its obligations at a reasonable price is defined as liquidity risks. The Company’s finance department is responsible for managing liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management. Management monitors the Company’s net liquidity position through expected cash flows.

The Company’s objective is to maintain a balance between continuity of funding and flexibility through the use of cash credits, Term loans among others.

C. Market Risk- A risk that the fair value of future cash flows of a financial instrument may fluctuate because of changes in market prices is defined as Marketing Risk. Such changes in the value of financial instruments may result from changes in the foreign currency exchange rates, interest rates, credit, liquidity and other market changes.

(i) Foreign Currency Risk- A risk that the fair value or future value of the cash flows of a forex exposure will fluctuate because of changes in foreign exchange rates is defined as Foreign Currency Risk. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s import and export activities. The Company, as per its risk management policy, uses foreign exchange and other derivative instruments primarily to hedge foreign exchange exposure. The management monitors the foreign exchange fluctuations on a continuous basis.

Derivative instruments and un-hedged foreign currency exposure:

The Company does not enter into any derivative instruments for trading or speculative purposes.

(ii) Interest rate risk- The Company’s exposure to the risk of changes in market interest rates relates primarily to long-term debt.

40. Capital management

The Company’s objective when managing capital (defined as net debt and equity) is to safeguard the Company’s ability to continue as a going concern in order to provide returns to shareholders and benefits for other stakeholders, while protecting and strengthening the Balance Sheet through the appropriate balance of debt and equity funding. The Company manages its capital structure and makes adjustments to it, in taking into consideration the economic conditions and strategic objectives of the Company.

For the purpose of the Company’s capital management, capital includes issued capital, share premium and all other equity reserves. Net debt includes, interest bearing loans and borrowings, trade and other payables less cash and short-term deposits.

In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches of the financial covenants of any interest-bearing loans and borrowing for reported periods.

Contribution to political parties during the year 2023-24 is '' Nil (previous year '' Nil)

41. There are no amounts due and outstanding to be credited to Investor Education & Protection Fund as at March 31,2024.

42. Events after the reporting period

There have been no events after the reporting date that require disclosure in financial statements.

43. Additional Disclosures:

a. The Company has not revalued its Property, Plant and Equipment accordingly disclosure as to whether the revaluation is based on the valuation by a registered valuer as defined under rule 2 of the Companies (Registered Valuers and Valuation) Rules, 2017 is not applicable to the Company.

b. During the year, the Company has not granted any Loans or Advances in the nature of loans which are either repayable on demand or without specifying any terms or period of repayment to promoters, directors and KMPs either severally or jointly with any other person

c. No proceedings have been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder, the company for the financial year 2023-24.

d. The Company has taken borrowings from banks or financial institutions on the basis of security of current assets. The quarterly returns or statements of current assets filed by the Company with such banks or financial institutions are generally in agreement with the unaudited books of account of the Company of the respective quarters.

e. The Company has not been declared as willful defaulter by any bank or financial Institution or other lender.

f. The company has any not entered into any transactions with companies which are struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956 during the financial year ended on 31 03 2024.

g. The Company does not have any charges or satisfaction which is yet to be registered with Registrar of Companies beyond the statutory period.

h. The Company does not have any investment through more than two layers of investment companies as per section 2(87)(d) and section 186 of the Companies Act 2013.

i. During the year 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 (whether recorded in writing or otherwise) that the Intermediary shall

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries, the company.

j. During the year Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

k. The Company does not have such transaction which are not recorded in the books of accounts during the year and also there are not such unrecorded income and related assets related to earlier years which have been recorded in the books of account during the year.

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

45. Previous year figures are regrouped and reclassified to make them comparable with Ind AS presentation.

46. The above financial statements have been reviewed by the audit committee and subsequently approved by the Board of Directors at its meeting held on May 13, 2024.

1. The Company has only one class of shares referred to as equity shares having a par value of ''10/-. each holder of equity shares is entitled to one vote per share.

2. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution will be in proportion to the number of shares held by the shareholders.

a) Securities Premium

Securities premium is used to record premium amount received on issue of securities. The reserve can be used for the purpose as given in provisions of the Companies Act, 2013 (the "Companies Act”).

Cash Credit:

Primary: Exclusive Charge over the hypothecation of stocks and book debts and other current assets of the Company both present and future Collateral: Exclusive Charge over Property, Plant and Equipments of the Company both present and Future.

Cash Credit facilities has been guaranteed by the directors.

32. As per Section 135 of the Companies Act, 2015, a company, meeting the applicability threshold, 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 areas for CSR activities are healthcare including preventive healthcare, providing safe drinking water, sanitation facility, promoting education, old age home maintenance, environmental sustainability and promotion and development of traditional art and handicrafts. A Corporate Social Responsibility Committee has formed by the Company as per the Act.

35. Segment information as per IND AS-108

Operating segment are components of the Company whose operating results, the Chief Operating Decision Maker ("CODM”) to make decisions about resources to be allocated to the segment and assess its performance regularly review and for which discrete financial information is available.

The Company is engaged primarily on the business of "manufacturing & trading of readymade garments business” only, taking into account the risks and returns, the organization structure and the internal reporting systems. All the operations of the Company are in India. All non-current assets of the Company are located in India. Accordingly, there are no separate reportable segments as per Ind AS 108 - "Operating segments”.

36.4 The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the obligations related to lease liabilities as and when they fall due.

36.5 During the period ended March 31,2023 the expense recognized in the statement of profit and loss includes:

(i) Rental Expenses recorded for Short-term lease '' 1,35,99,076 for the year ended 31 March 2023 (Previous Year: '' 52,89,079/-)

(ii) Variable lease expense not forming part of lease liability of '' Nil (Previous Year: '' Nil)

Fair Value Hierarchy

Level-1 Quoted Price (unadjusted) is active markets for identical assets or liabilities

Level-2 Inputs other than quoted prices included within Level-1 that are observable for the asset or liability, either directly (i.e as prices) or indirectly (i.e.) derived from prices)

Level-3 Inputs other than quoted prices included within Level-1 that are based on non-observable market data.

The following table presents fair value hierarchy of assets and liabilities measured at fair value on a recurring basis as of March 31, 2023:

39. Financial risk management objective and policies

The Company’s financial liabilities includes Loan and borrowings and Trade & other payables. The main purpose of these financial liabilities is to finance the Company’s operations. The Company’s financial assets include trade & other receivables, deposits and cash & cash equivalents.

The Company’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Company’s financial performance. The Company uses derivative financial instruments to hedge certain risk exposures. The Company does not acquire or issue derivative financial instruments for trading or speculative purposes.

The Company’s activities expose it to Credit Risk, Liquidity Risk and Market Risk. The Company has a Risk management policy and its management is supported by a Risk management committee that advises on risks and the appropriate financial risk governance framework for the Company. The Risk management committee provides assurance to the Company’s management that the Company’s risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company’s policies and risk objectives. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.

A. Credit Risk- A risk that counterparty may not meet its obligations under a financial instrument or customer contract, leading to a financial loss is defined as Credit Risk. The Company is exposed to credit risk from its operating and financial activities.

Customer credit risk is managed by the respective marketing department subject to the Company’s established policy, procedures and control relating to customer credit risk management. The Company reviews the creditworthiness of these customers on an on-going basis. The Company estimates the expected credit loss on the basis of past data, experience and policy laid down in this respect. The maximum exposure to the credit risk at the reporting date is the carrying value of the trade receivables disclosed in Note 6 (Six) as the Company does not hold any collateral as security. The Company has a practice to provide for doubtful debts as per its approved policy.

An impairment analysis is performed at each reporting date on an individual basis. The calculation is based on historical data of credit losses.

The ageing analysis of the receivables (gross of allowances) has been considered from the date the invoice falls due.

B. Liquidity Risk- A risk that the Company may not be able to settle or meet its obligations at a reasonable price is defined as liquidity risks. The Company’s finance department is responsible for managing liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management. Management monitors the Company’s net liquidity position through expected cash flows.

The Company’s objective is to maintain a balance between continuity of funding and flexibility through the use of cash credits, Term loans among others.

C. Market Risk- A risk that the fair value of future cash flows of a financial instrument may fluctuate because of changes in market prices is defined as Marketing Risk. Such changes in the value of financial instruments may result from changes in the foreign currency exchange rates, interest rates, credit, liquidity and other market changes.

(i) Foreign Currency Risk- A risk that the fair value or future value of the cash flows of a forex exposure will fluctuate because of changes in foreign exchange rates is defined as Foreign Currency Risk. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s import and export activities. The Company, as per its risk management policy, uses foreign exchange and other derivative instruments primarily to hedge foreign exchange exposure. The management monitors the foreign exchange fluctuations on a continuous basis.

Derivative instruments and un-hedged foreign currency exposure:

The Company does not enter into any derivative instruments for trading or speculative purposes.

(ii) Interest rate risk-The Company’s exposure to the risk of changes in market interest rates relates primarily to long-term debt.

Maturity profile of financial liabilities

The table below provides details regarding the remaining contractual maturities of financial liabilities at the reporting date based on contractual undiscounted payments.

40. Capital management

The Company’s objective when managing capital (defined as net debt and equity) is to safeguard the Company’s ability to continue as a going concern in order to provide returns to shareholders and benefits for other stakeholders, while protecting and strengthening the Balance Sheet through the appropriate balance of debt and equity funding. The Company manages its capital structure and makes adjustments to it, in taking into consideration the economic conditions and strategic objectives of the Company.

For the purpose of the Company’s capital management, capital includes issued capital, share premium and all other equity reserves. Net debt includes, interest bearing loans and borrowings, trade and other payables less cash and short-term deposits.

In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches of the financial covenants of any interest-bearing loans and borrowing for reported periods.

Contribution to political parties during the year 2022-23 is '' Nil (previous year '' Nil)

41. There are no amounts due and outstanding to be credited to Investor Education & Protection Fund as at March 31,2023.

42. Events after the reporting period

There have been no events after the reporting date that require disclosure in financial statements.

43. Additional Disclosures:

a. The Company has not revalued its Property, Plant and Equipment accordingly disclosure as to whether the revaluation is based on the valuation by a registered valuer as defined under rule 2 of the Companies (Registered Valuers and Valuation) Rules, 2017 is not applicable to the Company.

b. During the year, the Company has not granted any Loans or Advances in the nature of loans which are either repayable on demand or without specifying any terms or period of repayment to promoters, directors and KMPs either severally or jointly with any other person

c. No proceedings have been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder, the company for the financial year 2022-23.

d. The Company has been taken borrowings from banks or financial institutions on the basis of security of current assets. The quarterly returns or statements of current assets filed by the Company with such banks or financial institutions are generally in agreement with the unaudited books of account of the Company of the respective quarters.

e. The Company has not been declared as willful defaulter by any bank or financial Institution or other lender.

f. The company has any not entered into any transactions with companies which are struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956 during the financial year ended on 31 03 2023.

g. The Company does not have any charges or satisfaction which is yet to be registered with Registrar of Companies beyond the statutory period.

h. The Company does not have any investment through more than two layers of investment companies as per section 2(87)(d) and section 186 of the Companies Act 2013.

i. During the year 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 (whether recorded in writing or otherwise) that the Intermediary shall

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries, the company.

j. During the year Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

k. The Company does not have such transaction which are not recorded in the books of accounts during the year and also there are not such unrecorded income and related assets related to earlier years which have been recorded in the books of account during the year.

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

45. Previous year figures are regrouped and reclassified to make them comparable with Ind AS presentation.

46. The above financial statements have been reviewed by the audit committee and subsequently approved by the Board of Directors at its meeting held on 4^th May 2023.

1. The Company has only one class of shares referred to as equity shares having a par value of '' 10/-. Each holder of equity shares is entitled to one vote per share.

2. I n the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts.However,no such preferential amounts exist currently.The distribution will be in proportion to the number of shares held by the shareholders.

Cash Credit:

Primary: Pari-Passu Charge 1^st charge over the hypothecation of stocks and book debts and other current assets of the Company both present and future Collateral: Pari-Passu Charge 2^nd charge over Property, Plant and Equipments of the Company both present and Future.

Cash Credit facilities has been guaranteed by the directors.

As per the Income Tax Act, 1961, the Company is liable to pay income tax based on higher of regular income tax payable or the amount payable based on the provisions applicable for Minimum Alternate Tax (MAT). MAT paid in excess of regular income tax during a year can be carried forward for a period of fifteen years and can be offset against future tax liabilities arising from regular income tax.

As per the recent Taxation Laws (Amendment) Ordinance, 2019 the company has exercised the option to pay tax at a lower rate of 22%. The Ordinance also amended the relevant section governing MAT provisions and provide that companies opting for new tax rate would not be governed by MAT. The company has adopted the new tax rate starting this financial year.

The Company can claim tax exemptions/deductions under specific sections of the Income Tax Act, 1961 subject to fulfilment of prescribed conditions, as may be applicable.

Business loss can be carried forward for a maximum period of eight assessment years immediately succeeding the assessment year to which the loss pertains. Unabsorbed depreciation can be carried forward for an indefinite period.

The Company has allotted 1,16,52,947/- Fully Paid-up Equity Shares of '' 10/- each, as Bonus Equity Shares to the members in the ratio of 5:2 i.e., for every existing 2 nos. of shares, the members has received 5 nos. of Bonus Equity Shares. The record date and allotment date are 15-10-2020 and 17-10-2020 respectively.

Accordingly, the Earning Per Share (EPS)- Basic and Diluted, has been revised for periods prior to allotment date i.e., 15-10-2020, after considering the bonus issues.

35 As per Section 135 of the Companies Act, 2015, a company, meeting the applicability threshold, 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 areas for CSR activities are healthcare including preventive healthcare, providing safe drinking water, sanitation facility, promoting education, old age home maintenance, environmental sustainability and promotion and development of traditional art and handicrafts. A Corporate Social Responsibility Committee has formed by the Company as per the Act.

As per the provisions of the Act, amount not less than Rs.11,28,568/- (year ended 31/03/2020 Rs. 9,48,611) should have been incurred during the year under CSR. The Company has incurred expenses amounting to Rs. 11,51,587/-(year ended 31/03/2020: Rs. 9,51,000), in line with the CSR policy, which is in conformity with the activities specified in Schedule VII of the Companies Act, 2013.

38. Segment information as per IND AS-108

Operating segment are components of the Company whose operating results, the Chief Operating Decision Maker ("CODM”) to make decisions about resources to be allocated to the segment and assess its performance regularly review and for which discrete financial information is available.

The Company is engaged primarily on the business of "manufacturing & trading of readymade garments business” only, taking into account the risks and returns, the organization structure and the internal reporting systems. All the operations of the Company are in India. All non-current assets of the Company are located in India. Accordingly, there are no separate reportable segments as per Ind AS 108 - "Operating segments”.

39.4 The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the obligations related to lease liabilities as and when they fall due.

39.5 During the period ended March 31, 2021 the expense recognized in the statement of profit and loss includes:

(i) Rental Expenses recorded for Short-term lease '' 49,61,423 for the year ended March 31, 2021 (Previous Year: '' 66,22,265/-)

(ii) Variable lease expense not forming part of lease liability of '' Nil (Previous Year: '' Nil )

Fair Value Hierarchy

Level-1 Quoted Price (unadjusted) is active markets for identical assets or liabilities

Level-2 I nputs other than quoted prices included within Level-1 that are observable for the asset or liability, either directly (i.e as prices) or indirectly (i.e.) derived from prices)

Level-3 Inputs other than quoted prices included within Level-1 that are based on non-observable market data.

The following table presents fair value hierarchy of assets and liabilities measured at fair value on a recurring basis as of March 31, 2021:

42. Financial risk management objective and policies

The Company’s financial liabilities includes Loan and borrowings and Trade & other payables. The main purpose of these financial liabilities is to finance the Company’s operations. The Company’s financial assets include trade & other receivables, deposits and cash & cash equivalents.

The Company’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Company’s financial performance. The Company uses derivative financial instruments to hedge certain risk exposures. The Company does not acquire or issue derivative financial instruments for trading or speculative purposes.

The Company’s activities expose it to Credit Risk, Liquidity Risk and Market Risk. The Company has a Risk management policy and its management is supported by a Risk management committee that advises on risks and the appropriate financial risk governance framework for the Company. The Risk management committee provides assurance to the Company’s management that the Company’s risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company’s policies and risk objectives. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.

A. Credit Risk- A risk that counterparty may not meet its obligations under a financial instrument or customer contract, leading to a financial loss is defined as Credit Risk. The Company is exposed to credit risk from its operating and financial activities.

Customer credit risk is managed by the respective marketing department subject to the Company’s established policy, procedures and control relating to customer credit risk management. The Company reviews the creditworthiness of these customers on an on-going basis. The Company estimates the expected credit loss on the basis of past data, experience and policy laid down in this respect. The maximum exposure to the credit risk at the reporting date is the carrying value of the trade receivables disclosed in Note 6 (Six) as the Company does not hold any collateral as security. The Company has a practice to provide for doubtful debts as per its approved policy.

An impairment analysis is performed at each reporting date on an individual basis. The calculation is based on historical data of credit losses.

The ageing analysis of the receivables (gross of allowances) has been considered from the date the invoice falls due.

B. Liquidity Risk- A risk that the Company may not be able to settle or meet its obligations at a reasonable price is defined as liquidity risks. The Company’s finance department is responsible for managing liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management. Management monitors the Company’s net liquidity position through expected cash flows.

The Company’s objective is to maintain a balance between continuity of funding and flexibility through the use of cash credits, Term loans among others.

C. Market Risk- A risk that the fair value of future cash flows of a financial instrument may fluctuate because of changes in market prices is defined as Marketing Risk. Such changes in the value of financial instruments may result from changes in the foreign currency exchange rates, interest rates, credit, liquidity and other market changes.

(i) Foreign Currency Risk- A risk that the fair value or future value of the cash flows of a forex exposure will fluctuate because of changes in foreign exchange rates is defined as Foreign Currency Risk. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s import and export activities. The Company, as per its risk management policy, uses foreign exchange and other derivative instruments primarily to hedge foreign exchange exposure. The management monitors the foreign exchange fluctuations on a continuous basis.

Derivative instruments and un-hedged foreign currency exposure:

The Company does not enter into any derivative instruments for trading or speculative purposes.

(ii) Interest rate risk- The Company’s exposure to the risk of changes in market interest rates relates primarily to long-term debt.

43. Capital management

The Company’s objective when managing capital (defined as net debt and equity) is to safeguard the Company’s ability to continue as a going concern in order to provide returns to shareholders and benefits for other stakeholders, while protecting and strengthening the Balance Sheet through the appropriate balance of debt and equity funding. The Company manages its capital structure and makes adjustments to it, in taking into consideration the economic conditions and strategic objectives of the Company.

For the purpose of the Company’s capital management, capital includes issued capital, share premium and all other equity reserves. Net debt includes, interest bearing loans and borrowings, trade and other payables less cash and short-term deposits.

In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches of the financial covenants of any interest-bearing loans and borrowing for reported periods.

44. Estimation of Uncertainty Relating to Covid - 19

The nation-wide lockdown/restrictions due to Covid-19 pandemic by the Government, impacted the Company operation activities. The Company resume its operations in phased manner after the Government, announced unlockdown from 1^st half of June, 2020. Accordingly, the financial results for the nine months ended December 31, 2020 is not comparable with the previous corresponding results. In assessing the impact of the pandemic on the Company’s operations and performance, the Company has considered internal and external information up to the date of the approval of the financial statements and based on current indicators of future economic conditions, the Management is of the view that it will not be severely impacted. The impact of the global health pandemic may be different from that estimated as at the date of approval of these financial statements and the Company will continue to closely monitor any material changes to future economic conditions

45. Contribution to political parties during the year 2020-21 is '' Nil (previous year '' Nil)

46. There are no amounts due and outstanding to be credited to Investor Education & Protection Fund as at March 31, 2021.

47. The Company has migrated from NSE-SME Platform to NSE-Main Trading Platform from February 22, 2021. Earlier Companies published the half yearly unaudited financial results as it is listed on NSE-SME trading platform.

48. Events after the reporting period

There has been no events after the reporting date that require disclosure in financial statements.

49. Previous year figures are regrouped and reclassified to make them comparable with Ind AS presentation.

50. The above financial statements have been reviewed by the audit committee and subsequently approved by the Board of Directors at its meeting held on April 30, 2021.