అకౌంట్స్ గమనికలుShree Ram Twistex Ltd.

3.1 Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the year end date, that have a significant risk of
causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The company
based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions
about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the company. Such
changes are reflected in the assumptions when they occur.

Key source of judgments, assumptions and estimates in the preparation of the Financial Statements which may cause a material adjustment to the
carrying amounts of assets and liabilities within the next financial year, are in respect of useful lives of Property, Plant and Equipment, impairment,
employee benefit obligations, provisions, provision for income tax, measurement of deferred tax assets and contingent assets & liabilities.

(a) Useful lives of property, plant and equipment and intangible assets

As described in the Material accounting policies, the company reviews the estimated useful lives of property, plant and equipment and intangible
assets at the end of each reporting period. Useful lives of intangible assets is determined on the basis of estimated benefits to be derived from use of
such intangible assets. These reassessments may result in change in the depreciation /amortisation expense in future periods.

(b) Fair value measurements and valuation processes

Some of the company''s assets and liabilities are measured at fair value at each balance sheet date or at the time they are assessed for impairment. In
estimating the fair value of an asset or a liability, the company uses market-observable data to the extent it is available. Where Level 1 inputs are not
available, the company engages third party valuers, where required, to perform the valuation. Information about the valuation techniques and
inputs used in determining the fair value of various assets and liabilities require estimates to be made by the management and are disclosed in the
notes to consolidated financial statements.

(c) Actuarial Valuation

The determination of company''s liability towards defined benefit obligation to employees is made through independent actuarial valuation
including determination of amounts to be recognised in the Statement of Profit and Loss and in Other Comprehensive Income. Such valuation
depend upon assumptions determined after taking into account discount rate, salary growth rate, expected rate of return, mortality and attrition
rate. Information about such valuation is provided in notes to the financial statements.

(d) Impairment of non-financial assets

In assessing impairment, management estimates the recoverable amount of each asset or cash-generating units based on expected future cash flows
and uses an interest rate to discount them. Estimation uncertainty relates to assumptions about future operating results and the determination of a
suitable discount rate.

(e) Revenue from Contracts with Customers

The company has applied judgments that significantly affect the determination of the amount and timing of revenue from contracts with customers.
3.2 Critical Accounting Judgements and Key Sources of Estimation

The preparation of the company''s financial statements requires management to make judgements, estimates and assumptions that affect the
reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities at the
date of the financial statements. Estimates and assumptions are continuously evaluated and are based on management''s experience and other
factors, including expectations of future events that are believed to be reasonable under the circumstances. Uncertainty about these assumptions
and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

Key source of judgments, assumptions and estimates in the preparation of the Financial Statements which may cause a material adjustment to the
carrying amounts of assets and liabilities within the next financial year, are in respect of useful lives of Property, Plant and Equipment, impairment,
employee benefit obligations, provisions, provision for income tax, measurement of deferred tax assets and contingent assets & liabilities.

(i) Critical judgments in applying accounting policies

The following are the areas of estimation uncertainty and critical judgements that the management has made in the process of applying the
company''s accounting policies and that have the most significant effect on the amounts recognised in the financial statements:-

(a) Determining whether an arrangement contain leases and classification of leases

Ind AS 116 requires lessees to determine the lease term as the non-cancellable period of a lease adjusted with any option to extend or terminate the
lease, if the use of such option is reasonably certain. The company makes an assessment on the expected lease term on a lease-by-lease basis and
thereby assesses whether it is reasonably certain that any options to extend or terminate the contract will be exercised. In evaluating the lease term,
the company considers factors such as any significant leasehold improvements undertaken over the lease term, costs relating to the termination of
the lease and the importance of the underlying asset to operations taking into account the location of the underlying asset and the availability of
suitable alternatives. The lease term in future periods is reassessed to ensure that the lease term reflects the current economic circumstances.

(b) Evaluation of indicators for impairment of Property, Plant and Equipment

The evaluation of applicability of indicators of impairment of assets requires assessment of external factors (significant decline asset''s value,
economic or legal environment, market interest rates etc.) and internal factors (obsolescence or physical damage of an asset or poor economic
performance of the asset etc.) which could result in significant change in recoverable amount of the Property, Plant and Equipment.

(ii) Assumptions and key sources of estimation uncertainty

(a) Assets and obligations relating to employee benefits

The employment benefit obligations depends on a number of factors that are determined on an actuarial basis using a number of assumptions. The
assumptions used in determining the net cost/ (income) include the discount rate, inflation and mortality assumptions. Any changes in these
assumptions will impact upon the carrying amount of employment benefit obligations.

(b) Impairment of non-financial assets

The company assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, or when annual
impairment testing for an asset is required, the company estimates the asset''s recoverable amount. An asset''s recoverable amount is the higher of an
asset''s or CGU''s fair value less costs of disposal and its value in use. It is determined for an individual asset, unless the asset does not generate cash
inflows that are largely independent of those from other assets or companys of assets. Where the carrying amount of an asset or CGU exceeds its
recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current
market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs of disposal, recent market
transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used. These calculations are
corroborated by valuation multiples, quoted share prices for publicly traded subsidiaries or other available fair value indicators.

(c) Useful lives of Property, Plant and Equipment/Intangible Assets

Property, Plant and Equipment/ Intangible Assets are depreciated/amortised over their estimated useful lives, after taking into account estimated
residual value. The useful lives and residual values are based on the company''s historical experience with similar assets and taking into account
anticipated technological changes or commercial obsolescence. Management reviews the estimated useful lives and residual values of the assets
annually in order to determine the amount of depreciation/amortisation to be recorded during any reporting period. The depreciation/amortisation
for future periods is revised, if there are significant changes from previous estimates and accordingly, the unamortised/depreciable amount is
charged over the remaining useful life of the assets.

(d) Income taxes

The company uses estimates and judgements based on the relevant facts, circumstances, present and past experience, rulings, and new
pronouncements while determining the provision for income tax. A deferred tax asset is recognised to the extent that it is probable that future
taxable profit will be available against which the deductible temporary differences and tax losses can be utilised.

4 Recent accounting pronouncements

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. For the year ended 31 March 2026, MCA has not notified any new standards or amendments to the existing standards
applicable to the company.

1. Security for SBI Machinery l.oan-II and SBI Working Capital Loan

A. Primary:

Cash Credit, Bank Guarantees and Clean Export Loans: Hypothecation of all current assets consisting of raw material, stock in process, finished goods, stores and
spares and receivables, current and future assets of the company.

Term Loan, Inland project LC, Import Project LC: Hypothecation charge over Plant & machinery and all other fixed assets of the Company (Present and Future).
Hypothecation of entire current assets(Present and Future)

B. Collateral Security:

Mortgage Charge over following Properties:

1. Factory Land & Buildings bearing Survey Number : 566 palki 1 & 5, situated at Industrial Land, Gondal Rev S No 566 Palki 1, Near Bajarang Cotspin & Parth
Industrial Area, Gondal, Gondal, Gujarat, 360330, (Semi Urban), Admeasuring Total Area : 29947 Belongs to : Shree Ram Twistex Limited.

2. Residential Building bearing Survey Number : 2802/2 palki, situated at 1, Gondal, Gujarat, 360330, (Semi Urban), Admeasuring Total Area : 87.79 Sq Mir
Bhikhubhai Mohanbhai Ramani

3. Residential Building bearing Survey Number : 28/P, situated at City S Sheet No 125, City S No 28 Palki Plot No. 331, Khodiyar Krupa, Kailasah Baug - 6/1 Behind
to Mama Dev Temple, Off. Jail Chowk Raod, Gondal, Gondal, Gujarat, 360330, (Semi Urban), Admeasuring Total Area : 143.86 Sq Mir Atulbhai Govindbhai Tilala

4. Residential Building bearing Survey Number : 2802/2 palki, situated at City S No 102, City S. No. 2802/2 Palki Vraj, Mahadevwadi, Street No. 2, Behind Reliance
Petrol Pump, Off Palace Road, Gondal, Gondal, Gujarat, 360330, (Semi Urban), Admeasuring T otal Area : 171.73 Sq mir Belongs to : Bhikhubhai Mohanbhai Ramani

5. Residential Plot bearing Survey Number : 7793/5, situated at City S No 7793/5 Palki, Plot No 1, Chari Chabhadiya School, Desai Wadi, Behind Devyai Appartment,
Jetpur, Jetpur, Gujarat, 360330, (Semi Urban), Admeasuring Total Area : Total 120.07 Sq Mir , Belongs to : Lilaben Savjibhai Kothari

6. Residential Building bearing Survey Number : 28 Palki, situated at Soham, Plot No. 4, Gokuldham Society, Block No B/34, Jetpur Road, Gondal, Gondal, Gujarat,
360330, (Semi Urban), Admeasuring Total Area: 135 Sq Mir , Belongs to : Pravinbhai Mohanbhai Ramani

7. Residential Building bearing Survey Number : 476 palki, situated at S No 476 Palki, Plot No 20, Yogi, Sardar Park Society, Gondal, Gondal, Gujarat, 360330, (Semi
Urban), Admeasuring T otal Area : 135.77 Sq Mir , Belongs to : Rajeshbhai Mohanbhai Hirani

8. Residential Plot bearing Survey Number : 2807 Palki, situated at Hari Om, Mahadevwadi Street No. 4, Near Reliance Petrol Pump, Gondal, Gujarat - 360330,
admeasuring 143.04 Sq Mtr, belonging to Ramnikbhai Mohanbhai Ramani

9. Residential Building, Survey No. 2806, Residential Open Plot, City Sheet S. No. 102, City S. No. 2806 Paiki, Mahadevwadi Street No. 3, Gondal, Gujarat - 360330,
admeasuring 83.61 Sq Mtr, belonging to Ramniklal Mohanbhai Ramani

10. Residential Plot, Survey No. 2806, Residential Open Plot, City S. No. 102, City S. No. 2806 Paiki, Mahadevwadi Street No. 3, Gondal, Gujarat - 360330,
admeasuring 85.29 Sq Mtr, belonging to Vithalbhai Mohanbhai Ramani

C. Personal Guarantees:

The facilities are further secured by the personal guarantees of: Bhaveshbhai Ramani, Atulbhai Tilala, Jay Tilala, Bhavesh Kothari, Rameshchandra Hirani, Jaydeep
Ramani, Vitthalbhai Ramani, Ramniklal Ramani, Pravinchandra Ramani, Lilaben Kothari, Rajeshkumar Hirani and Bhikhabhai Ramani

Term of Repayment

The Term Loan from SBI outstanding amounting to Rs. 915.48 Lakhs as on 31st March 2026 (Originally Sanctioned Rs. 1950 Lakhs ) is repayable in 72 monthly
principal instalments commencing 25 January 2022, on a step-up basis, Rs. 10 lakhs per month from January 2022 to January 2025, Rs. 45 lakhs per month from
February 2025 to November 2027, and a final instalment of Rs. 50 lakhs in December 2027. The loan carries interest at 1.45% above the External Benchmark
Based Lending Rate (EBLR); the effective rate as per the sanction letter dated 06.02.2026 being 9.35% p.a. (EBLR: 7.90% p.a. Spread: 1.45%), subject to reset at
monthly intervals. The current maturities of the term loan are disclosed under Note 21, Short-T erm Borrowings.

Note:

The related party transactions disclosed above have been carried out in the ordinary course of business and on terms that are equivalent
^J to those that prevail in arm''s length transactions.

The Company has followed the requirements of Ind AS 24 - Related Party Disclosures in preparing these disclosures, and all material
^J related party transactions, relationships, and balances have been adequately disclosed.

Notes:

* (1) As per information and explanation given to us by the management, Goods and service tax department confiscated goods for non-generation ofE-way bill, for which order has been paid dtd.
27.08.2019 and demand has been raised of Rs.15,56,034/-, which has not been provided for in the accounts. The company has preferred an appeal against the order to High Court (Ahmedabad),
however the company has paid Rs.1,35,308/- as on 31.12.2024 under dispute against the demand.

42 Defined Benefit Plan

A. Defined benefit plan

The Company has defined benefit gratuity plan for its employees which is unfunded. Gratuity is computed as 15 days last drawn salary, for every completed year of service or part thereof in excess of 6
months and is payable on retirement / termination / resignation. The benefit vests on the employee completing 5 years of service. The Company makes provision of such gratuity asset/liability in the
books of accounts on the basis of actuarial valuation as per the projected unit credit method.

43 FAIR VALUES OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES

The fair value of other current financial assets, cash and cash equivalents, trade receivables, trade payables and other financial liabilities approximate the carrying amounts because of the short term
nature of these financial instruments.

The amortized cost using effective interest rate (EIR) of non-current financial - borrowings is not significantly different from the carrying amount.

Financial assets that are neither past due nor impaired include cash and cash equivalents, security deposits, term deposits, subsidy receivable and other financial assets.

The impact of fair value on such portion is not material and therefore not considered for above disclousre. Similarly, carrying values of non current security deposits and non-current term deposits are
not signifacant and therefore the impact of fair values is not considered for above disclousre.

44 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company is exposed to various financial risks. These risks are categorized into market risk, credit risk and liquidity risk. The Company''s risk management is coordinated by the Board of Directors
and focuses on securing long term and short term cash flows. The Company does not engage in trading of financial assets for speculative purposes.

(A) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk,
currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include borrowings.

(i) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

(B) 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. The maximum exposure to credit risk is equal to
the carrying value of the financial assets. The objective of managing counterparty credit risk is to prevent losses in financial assets. The Company assesses the credit quality of the counterparties,
taking into account their financial position, past experience and other factors.

The Company limits its exposure to credit risk of cash held with banks by dealing with highly rated banks and institutions and retaining sufficient balances in bank accounts required to meet a month''s
operational costs. The Management reviews the bank accounts on regular basis and fund drawdowns are planned to ensure that there is minimal surplus cash in bank accounts.The Company does not
foresee any credit risks on deposits with regulatory authorities.

(C) Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always
have sufficient liquidity to meet its liabilities when due.

45 CAPITAL MANAGEMENT

For the purpose of the Company''s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders. The primary objective of the Company''s
capital management is to maximize the shareholder value and to ensure the Company''s ability to continue as a going concern.

The Company monitors gearing ratio i.e. total debt in proportion to its overall financing structure, i.e. equity and debt. Total debt comprises of non-current and current borrowings. The Company
manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets.

47 Additional Notes

A) The Company does not have any intangible assets.

B) The Company does not have any investment property.

C) The Company has revalued its Property, Plant and Equipment.

D) There are no loans or advances in the nature of loans are granted to Promoters, Directors, KMPs and their related parties (as defined under Companies Act, 2013), either severally or jointly with any
other person, that are outstanding as on 31st March, 2026:

(i) repayable on demand; or,

(ii) without specifying any terms or period of repayment.

E) The company is not declared willful defaulter by any bank or financial institution or other lender.

F) The company has not undertaken any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

G) No Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.

H) 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 undrstanding (whether recorded in writing or otherwise) that the Intermediary shall directly or indirectly lend or invest in other persons or entities identified in any
manner whatsoever (Ultimate Beneficiaries) by or on behalf of the company or provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

I) The 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 directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever (Ultimate Beneficiaries) by or on behalf of the Funding Party or provide any
guarantee, security or the like on behalf of the Ultimate Beneficiaries.

J) No transactions has been surrendered or disclosed as income during the year in the tax assessment under the Income Tax Act, 1961. There are no such previously unrecorded income or related
assets.

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

L) The company is covered under the provisions of section 135 of the Companies Act, 2013 for Corporate Social Responsibility (CSR) from the FY 2024-25.

50 The Company has considered the business segment as the primary reporting segment on the basis that the risk and returns of the Company is primarily determined by the nature of products and
services. Consequently, the geographical segment has been considered as a secondary segment.

The business segment have been identified on the basis of the nature of products and services, the risks and returns, internal organisation and management structure and the internal performance
reporting systems. The company is engaged in the business of manufacturing of cotton yarn. Geographical segment is considered based on sales within India and outside India.

51 Previous year figures have been regrouped/rearranged whenever necessary to conform to this current year''s classification.

2.14 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions are recognized when there is a present obligation as a result of past events when it is probable that there will
be outflow of resources and reliable estimation can be made of the amount of obligation. Contingent liabilities are disclosed
when the company has a possible obligation or a present obligation and it is probable that a cash outflow will not be
required to settle the obligation. Contingent assets are neither recognized nor disclosed in the financial statements.

2.15 EMPLOYEE BENEFITS

SHORT TERM EMPLOYEE BENEFITS

Employee benefits such as salaries, wages, compensated absence, bonus, ex-gratia, incentives, etc. falling due wholly
within twelve months of rendering the service are classified as short-term employee benefits and are recognised in the
period in which the employee renders the related service and are measured at the amounts expected to be paid when the
liabilities are settled.

COMPENSATED ABSENCES

The company has a policy on compensated absences which are accumulating, but non-vesting. Since the employee has
unconditional right to avail the leave, the benefit is classified as a short term employee benefit. The company records an
obligation for such compensated absences in the period in which the employee renders the services that increase this
entitlement.

Liability in respect of compensated absences becoming due or expected to be availed is recognized on the basis of
estimated amount required to be paid or estimated value of benefit expected to be availed by the employees.

POST EMPLOYMENT EMPLOYEE BENEFITS

i. Defined Contribution Plans

A defined contribution plan is a post-employment benefit under which an entity pays a specific contribution to a
separate entity and has no obligation to pay any further amounts. Retirement benefits in the form of provident fund
and The company''s superannuation scheme, state governed provident fund scheme, employee state insurance scheme
and employee pension scheme are defined contribution plans. The contribution paid/payable under the schemes is
recognised during the period in which the employee renders the related service. The company has no further obligations
under these plans beyond its monthly contribution.

ii. Defined Benefit Plans

Gratuity is a post employment benefit and is in nature of defined benefit plan. The liability in respect of gratuity is
, calculated using the estimation of present value of gratuity liability and accordingly provision is made in the accounts.
However, the company has not taken any term policy or created gratuity trust.

2.16 EARNINGS PER SHARE

Basic earnings per share is computed by dividing the net profit after tax attributable to the shareholders by the weighted
average number of equity shares outstanding during the period.

2.17 CASH FLOW STATEMENT

Cash flows are reported using indirect method, whereby profit before tax is adjusted for the effects of transaction of non¬
cash nature, any deferral or accrual of past or future operating cash receipts or payments and item of incomes or expenses
associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the
Company are segregated.

Additional Information:

5.1 Repayment terms of loans & in case of secured loans, security details also.

(a) All SBI Term Loans

Security Details: All SBI term loans are primary secured by hypothecation charge over entire plant and machinery of the
company, both present and future. Further, secured by hypothecation charge over entire current assets of the company,
both present and future and equitable mortgage of collateral securities viz, industrial property owned by company and
other properties owned by guarantors. Also, they are secured by personal guarantee of all the directors and guarantors
of the Company.

Repayment Details :

SBI Machinery Loan (Old): 96 monthly Installments (after moratorium period of 12 months) started from February
2017. Last installment will be due in January 2025. First 12 installments of ? 33.00 Lacs, then second 12 installments of
? 36.00 Lacs, then third 12 installments of ? 38.00 Lacs, then 5 installments of ? 40.10 Lacs, then 47 installments of ?
41.15 Lacs and last installment of ? 39.00 Lacs.

SBI Covid Loan (CCECL): 18 monthly installments of Rs. 4.17 Lacs commencing from November 2020 and last
installment of Rs. 4.11 Lacs due in April, 2022.

SBI Covid Loan (GECL Loan): 36 monthly installments of Rs. 14,91,667/- after moratorium period of 12 months
commencing from September, 2021 and last installment due In August, 2024 .

SBI Machinery Loan (Expansion): 72 monthly installments after moratorium period of 12 months commencing from
January, 2022 and last installment will be due in December, 2027. First 37 installments of ? 10.00 Lacs, then 34

(b) SIDBI Solar Loan (Secured)

Security Details: SIDBI Solar loan is primary secured by hypothecation charge over all equipment, plant and machineries
and other assets of borrower which are proposed to be acquired under financing scheme.. Further, secured by fixed
deposit receipts amounting to rs.1.43 Crores.Also, they are secured by personal guarantee of all the directors and
guarantors of the Company.

Repayment Details :

54 monthly Installments (after moratorium period of 6 months) of Rs.l0,50,600/-started from July 2024. and Last
installment will be due in December 2028.

Notes:

1. As per information and explanation given to us by the management, Goods and service tax department confiscated
goods for non-generation of E-way bill, for which order has been paid dtd. 27.08.2019 and demand has been raised of
Rs.15,56,034/-, which has not been provided for in the accounts. The company has preferred an appeal against the
order to High Court (Ahemdabad), however the company has paid Rs.1,35,308/- as on 31.03.2021 under dispute

2. As per information and explanation given to us by the management, Goods and service tax department noticed excess
availment of Input tax credit for Financial Year 2017-18, for which order has been Issued dtd. 23.12.2023 and demand
has been raised of Rs.20,87,473/-(Including Interest of Rs. 10,09,282 and Penalty of Rs. 98,018, which has not been
provided for in the accounts. The company has preferred an appeal against the order to Appellate authority, however
the company has paid Rs.98,018/- as on 14.03.2024 under dispute against the demand.

Note : 33 | Provident Fund

The company makes monthly contribution to Employee Provident Fund Organization (EPFO) equal to a specified percentage of
the covered employee''s salary. The monthly contribution made by the company is recognized as a expense. The company has no
further obligation beyond its monthly contribution.

Note : 34 | Provision for gratuity

The company provides for gratuity payable to eligible employees on the basis of number of years completed by eligible
employees and last salary drawn by them. The company has neither created any gratuity fund trust nor taken any policy from
Insurance Company in this respect.