Sonaselection India Ltd. ಖಾತೆಯ ಉಪಯುಕ್ತ ಮಾಹಿತಿ

9. Provisions, Contingent Liabilities and Contingent Assets

A provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably,
and it is probable that an outflow of economic benefits will be required to settle the obligation. If the effect of the time value of money is material,
provisions are determined by discounting the expected future cash flows at a pre-taxrate that reflects current market assessments of the time value
of money and the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as
a finance cost.

The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at reporting date, taking
into account the risks and uncertainties surrounding the obligation.

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the receivable is
recognized as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably. The
expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.

Contingent Liabilities ^

Contingent Liabilities are possible obligations that arise from past events and whose existence will only be confirmed by the occurrence or non¬
occurrence of one or more future events not wholly within the control of the Company. Where it is not probable that an outflow of economic
benefits will be required, or the amount cannot be estimated reliably, the obligation is disclosed as a Contingent Liability, unless the probability ol
outflow of economic benefits is remote. Contingent Liabilities are disclosed on the basis of judgment of the management/independent experts.
These are reviewed at each balance sheet date and are adjusted to reflect the current management estimate.

Contingent Assets

Contingent Assets are possible assets that arise from past events and whose existence will be confirmed only by the occurrence or non¬
occurrence of one or more uncertain future events not wholly within the control of the Company. Contingent Assets are disclosed in the financial
statements when inflow of economic benefits is probable on the basis of judgment of management. These are assessed continually to ensure that
developments are appropriately reflected in the financial statements.

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10. Foreign Currency Transactions and Translation

Transactions in foreign currencies are initially recorded at the functional currency rates at the date the transaction first qualifies for recognition
Monetary Assets and Liabilities denominated in foreign currencies are translated at the functional currency spot rates of exchange at the reporting
date. Exchange differences arising on settlement or translation of monetary items are recognized in Statement of Profit and Loss in the year in
which it arises.

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11. Revenue Recognition

(I) Revenue From Operations

Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer at an amount that
reflects the consideration the company is entitled in exchange for those goods or services

Revenue towards satisfaction of a performance obligation is measured at the amount of transaction price (Net of variable consideration) allocatec
to that performance obligation. The transaction price of goods sold and services rendered is net of variable consideration on account of discounts,
rebates, credits, price incentives or similar terms.

A. Sale of goods | | | | |

Generally, control is transferred upon shipment of goods to the customer or when the goods is made available to the customer, provided transfer of
title to the customer occurs and the Company has not retained any significant risks of ownership or future obligations with respect to the goods
shipped.

Consideration is generally due upon satisfaction of performance obligations and a receivable is recognized when it becomes unconditional.

In case of discounts, rebates, credits, price incentives or similar terms, consideration are determined based on its most likely amount, which is
assessed at each reporting period.

B. Rendering of services | | | |

Revenue from rendering of services is recognised over time by measuring the progress towards complete satisfaction of performance obligations at
the reporting period.

Revenue is measured at the amount of consideration which the company expects to be entitled to in exchange for transferring distinct goods or

services to a customer as specified in the contract, excluding amounts collected on behalf of third parties (for example taxes and duties collected on

behalf of the government). Consideration is generally due upon satisfaction of performance obligations and a receivable is recognized when i1
becomes unconditional.

In case of discounts, rebates, credits, price incentives or similar terms, consideration are determined based on its most likely amount, which is
assessed at each reporting period.

C. Other operational revenue ] | | |

Other operational revenue represents income earned from the activities incidental to the business and is recognised when the right to receive the
income is established as per the terms of the contract.

(II) Other Income ^ | | |

Interest income is accrued on a time basis by reference to the principal outstanding and the effective interest rate.

Dividend income is accounted in the period in which the right to receive the same is established. |

Other items of income are accounted as and when the right to receive such income arises and it is probable that the economic benefits will flow to
the company and the amount of income can be measured reliably

12. Employee Benefits

i. DEFINED BENEFIT OBLIGATIONS

(a) Post-employment benefits (Gratuity):

The liability recognised in balance sheet in respect of gratuity (unfunded) is the present value of defined benefit obligation at the end of reporting
period less fair value of plan assets. The defined benefit obligation is calculated annually by actuaries using projected unit credit method.

Remeasurement actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period
in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement if changes in equity and in
the balance sheet

(b) Other employee benefits: | | | |

The liabilities for earned leave are not expected to be settled wholly within 12 months after the end of the period in which the employees render the
related service. They are therefore measured as present value of expected future payments to be made in respect of services provided by
employees up to the end of reporting period using the projected unit credit method.

ii. DEFINED CONTRIBUTION PLAN: | | | |

Company pays contributions to provident fund, employee pension scheme and employee state insurance as per statutes/ amounts as advised by
the Authorities. The Company has no further obligations once the contributions have been paid. The contributions are accounted for as defined
contribution plan and the contributions are recognised as employee benefit expense when they are due

iii. SHORT-TERM BENEFITS: | | | |

Liabilities for salaries, including non-monetary benefits that are expected to be settled wholly within 12 months after the end of reporting period in
which the employees rendered the related services are recognised in respect of employee’s service up to the end of reporting period and are
measured at the amount expected to be paid when the liabilities are settled. These liabilities are presented as current employee benefit obligations
in the balance sheet

13. Income Taxes

Income Tax Expense comprises Current and Deferred Tax. Current Tax Expense is recognized in Statement of Profit and Loss A/c except to the
extent that it relates to items recognized directly in other comprehensive income or equity, in which it is recognized in OCI or Equity.

CURRENT TAX | | | |

Current Tax is the expected taxpayable on the taxable income for the year, using taxrates enacted or substantively enacted and as applicable at the
reporting date, and any adjustment to tax payable in respect of previous years. Current Income Taxes are recognized under ‘Income Taxpayable’
net of payments on account, or under ‘Tax receivables’ where there is a debit balance.

DEFERRED TAX J_|_|_|_|

Deferred Tax is recognized using the Balance Sheet method, providing for temporary differences between the carrying amounts of assets and
liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred Tax is measured at the tax rates that are expected
to be applied to temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting
date. Deferred Tax Assets and Liabilities are offset if there is a legally enforceable right to offset current taxliabilities and assets, and they relate to
income taxes levied by the same taxauthority on the same taxable entity, or on different taxentities, but they intend to settle Current Tax Liabilities
and Assets on a net basis or their tax assets and liabilities will be realised simultaneously.

Deferred Tax is recognized in Statement of Profit and Loss except to the extent that it relates to items recognized directly in OCI or Equity, in which
case it is recognized in OCI or Equity.

A Deferred Tax Asset is recognized to the extent that it is probable that future taxable profits will be available against which the temporary
difference can be utilized. Deferred taxassets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the
related tax benefit will be realised.

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14. Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity

a. Financial Assets

Initial recognition and measuremen

All financial assets are recognized initially at fair value plus or minus, in the case of financial assets not recorded at fair value through profit or loss,
transaction costs that are attributable to the acquisition or issue of the financial asset.

Impairment of Financial Assets | | | |

In accordance with Ind-AS 109, the Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss on the
financial assets and credit risk exposure.

For recognition of impairment loss on financial assets and risk exposure, the Company determines that whether there has been a significant
increase in the credit risk since initial recognition. If credit risk has not increased significantly, 12-month ECL is used to provide for impairment loss.
However, if credit risk has increased significantly, lifetime ECL is used. If, in a subsequent period, the credit quality of the instrument improves
then the entity reverts to recognising impairment loss allowance based on 12-month ECL.

In respect of Trade receivables or any financial asset that result from transactions that are within the scope of Ind AS 115, company follows
‘simplified approach’ for recognition of impairment loss allowance within the scope of Ind AS 115, if they do not contain a significant financing
component. It recognizes impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.

b. Financial Liabilities
Initial recognition and measurement

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

Subsequent Measurement | | | |

Financial Liabilities are carried at amortized cost using the effective interest method. Amortized cost is calculated by taking into account any
discount or premium on acquisition and any material transaction that are any integral part of the EIR. For trade and other payables maturing within
one year from the balance sheet date, the carrying amounts approximate the fair value of the instrument.

Derecognition 1 | | | |

A Financial Liability is derecognized when the obligation under the liability is discharged or cancelled or expired. When an existing financial
liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified,
such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the
respective carrying amounts is recognized in the Statement of Profit and Loss.

c. Derivative Financial Instrument | | | |

The Company uses forwards to mitigate the risk of changes in interest rates, exchange rates and commodity prices. Such derivative financial
instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are also subsequently measured at
fair value on the reporting date. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair
value is negative. Any gains or losses arising from changes in the fair value of derivatives are taken to cash flow hedge reserve through Statement
of Other Comprehensive Income.

These are accounted for as follows:

a) Cash flow hedge

When derivative is designated as a cash flow hedging instrument, the effective portion of changes in the fair value of the derivative is recognized
in the cash flow hedging reserve being part of other comprehensive income. Any ineffective portion of changes in the fair value of the derivative is
recognized immediately in the Statement of Profit and Loss. If the hedging instrument expires or is sold, terminated or exercised, the cumulative
gain or loss previously recognized in the cash flow hedging reserve is transferred to the Statement of Profit and Loss upon the occurrence of the
underlying transaction. If the forecasted transaction is no longer expected to occur, then the amount accumulated in cash flow hedging reserve is
reclassified in the Statement of Profit and Loss.

b) Fair Value Hedge | | | |

Changes in the fair value of hedging instruments and hedged items that are designated and qualify as fair value hedges are recorded in the
Statement of Profit and Loss. If the hedging relationship no longer meets the criteria for hedge accounting, the adjustment to the carrying amount
of a hedged item for which the effective interest method is used is amortized to Statement of Profit and Loss over the period of maturity.

15. CSR Expenditure

The Company undertakes Corporate Social Responsibility (CSR) activities as per Section 135 of the Companies Act, 2013 and the Companies (CSR
Policy) Rules, 2014. CSR expenditure includes amounts incurred on activities that are approved as ongoing projects by the Board in line with the
CSR policy and applicable law.

CSR expenditure is recognized in the Statement of Profit and Loss in the period in which it is incurred. For ongoing projects, any unspent amounl
at the end of the financial year is transferred to a separate “Unspent CSR Account” with a scheduled bank within 30 days from the end of the
financial year, in accordance with Section 135(6) of the Act. Such amounts are spent within the timelines prescribed under Rule 4(6) of the CSR
Rules.

The Company does not capitalize any CSR expenditure unless it results in the creation of an asset controlled by a qualifying entity as specified
under Rule 7(4) of the CSR Rules.

16. Segment reporting

An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses,
including revenues and expenses that relate to transactions with any ofthe Company’s other components, and for which discrete financial
information is available. Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating
decision maker (‘CODM’).

The Company’s Board has identified the CODM who is responsible for financial decision making and assessing performance. The Company has a
single operating segment as the operating results of the Company are reviewed on an overall basis by the CODM.

17. Lease

The Company, as a lessee, recognises a right-of-use asset and a lease liability for its leasing arrangements, if the contract conveys the right to
control the use of an identified asset. The determination of whether an agreement is, or contains, a lease is based on the substance of the
agreement at the date of inception.

The contract conveys the right to control the use of an identified asset, if it involves the use of an identified asset and the Company has
substantially all of the economic benefits from use ofthe asset and has right to direct the use of the identified asset.

Initial Measurement

Lease Liability: At the commencement date, a Company measure the lease liability at the present value of the lease payments that are not paid at
that date. The lease payments shall be discounted using incremental borrowing rate. Right-of-use assets: initially recognised at cost, which
comprises the initial amount of the lease liability adjusted for any lease payments made at or prior to the commencement date of the lease plus any
initial direct costs less any lease incentives.

Subsequent Measurement

Lease Liability: Company measure the lease liability by (a) increasing the carrying amount to reflect interest on the lease liability; (b) reducing the
carrying amount to reflect the lease payments made; and (c) remeasuring the carrying amount to reflect any reassessment or lease modifications.
Right-of-use assets: subsequently measured at cost less accumulated depreciation and impairment losses. Right-of-use assets are depreciated from
the commencement date on a straight line basis over the shorter of the lease term and useful life of the under lying asset.

Impairment

Right of use assets are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be
recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value in-use) is
determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In
such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs.

Short Term Lease Or Low Value Lease

Short term lease is that, at the commencement date, has a lease term of 12 months or less. A lease that contains a purchase option is not a short¬
term lease.

Low value lease is for which the underlying asset is of low value. If the company elected to apply short term lease/Low Value Lease, the lessee
shall recognise the lease payments associated with those leases as an expense on either a straight-line basis over the lease term or another
systematic basis. The lessee shall apply another systematic basis if that basis is more representative of the pattern of the lessee’s benefit.

18. Earnings per share

Basic earnings per equity share is computed by dividing the net profit or loss attributable to equity shareholders of the Company by the weighted
average number of equity shares outstanding during the financial year.

Diluted earnings per equity share is computed by dividing the net profit or loss attributable to equity shareholders ofthe Company by the
weighted average number of equity shares considered for deriving basic earnings per equity share and also the weighted average number of equity
shares that could have been issued upon conversion of all dilutive potential equity shares

3. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts (if any). The
distribution will be in proportion to the number of equity shares held by the shareholders

4. The Company did not have outstanding calls unpaid by the directors and officers of the Company and also did not have any amount of forfeited shares in any of the reporting period

5. The Company has not allotted any fully paid up equity shares without payment being received in cash except bonus shares and nor has bought back any class of equity shares during the
period of five years immediately preceding the balance sheet date

The security premium received during the year ended March 31, 2025 represents the premium towards allotments of equity share. During the Year ended March 31, 2025, 374,145 equity share with
face value of Rs. 10/- each allotted at Premium of Rs. 137/- per share.

The balance will be utilised in accordance with the provisions of Section 52 of the Companies Act towards issuance of fully paid bonus shares, write-off of preliminary expenses, commission /
discount expenses on issue of shares / debentures, premium payable on redemption of redeemable preference shares / debentures and buy back of its own shares / securities under Section 68 oi
the Companies Act, 2013.

During the FY 2024-25, The company has allotted Bonus Equity Shares to the shareholders of the company in the proportion of 4 new fully paid-up Equity Share of Face Value of Re. 10/- each for
every 1 existing fully paid-up Equity Share of Face Value of Re. 10/- each. the same was partially utilised against retained earnings

During the Financial Year 2025-26, The Company has converted Compulsorily Convertible Debentures (CCDs) into Equity Shares in the ratio of 1:5, pursuant to the terms of issue. Accordingly,
4,83,040 (Four Lakh Eighty-Three Thousand Forty) Equity Shares of ?10/- each were converted including premium of Rs. 137/-

During the Financial Year 2025-26, The Company has issued Bonus Shares in the ratio of 1:16 to the existing equity shareholders. Consequently, 2,61,71,496 (Two Crore Sixty-One Lakh Seventy-
One Thousand Four Hundred Ninety-Six) Equity Shares of ?10/- each the same was partially utilised against retained earnings
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Notes and Terms & Condition of Loans:-

1 Term Loans Term Loan facility from HDFC Bank comprises of 4 term loans and from ICICI Bank comprises of 2 term loans. 5 term
loans out of 6 term loan including current maturities are secured by way of first charge over entire Fixed assets (Present & Future) o]
the company including equitable mortgage of its Factory Land & building situated at 18 K.M. Stone, Chittor Road, Guwardi, Bhilwara in
the name of M/s Sonaselection India Limited & personally guaranteed by guaranteed Directors & guarantors of the Company, viz
Subhash Nuwal, Harshil Nuwal, Uma Nuwal, Deepank Bhandari, Kailash Bhandari and Anita Bhandari and one term loan from ICIC]
bank including current maturities are secured by residential propoerty in the name of Uma Nuwal and Skhina Nuwal including their
personal guarantes.

Term Loan 1 - Sanctioned & Disbursed for Rs. 241.40 Million (Outstanding Balance - Rs. 137.67 Million as on 31st March 2026) is
repayable in monthly installments of Rs. 3.74 Million Last date of Repayment is December 2029. Rate of Interest Linked with 3M Repo
Rate i.e. 7.38% p.a.

Term Loan 2 - Sanctioned & Disbursed for Rs. 117.50 Million (Outstanding Balance - Rs. 78.39 Million as on 31st March 2026) is
repayable in monthly installments of Rs. 1.90 Million. Last date of Repayment is June 2030. Rate of Interest Linked with 3M Repo Rate
i.e. 7.22% p.a.

Term Loan 3- Sanctioned Rs. 850 Million (Outstanding Balance - Rs. 702.23 Million as on 31st March 2026) is repayable in monthly
installments of Rs. 13.44 Million. Last date of Repayment is October 2031. Rate of Interest Linked with 3M- Repo Rate i.e. 7.22% p.a.

Term Loan 4- Sanctioned Rs. 226.30 Million (Outstanding Balance - Rs. 213.62 Million as on 31st March 2026) is repayable in monthly
installments of Rs. 3.58 Million. Last date of Repayment is October 2031. Rate of Interest Linked with 3M- Repo Rate i.e. 7.75% p.a.

Term Loan 5- Sanctioned Rs. 100 Million (Outstanding Balance - Rs. 91.67 Million as on 31st March 2026) is repayable in monthly
installments of Rs. 1.19 Million. Last date of Repayment is October 2032. Rate of Interest Linked with 3M- Repo Rate i.e. 7.85% p.a.

Term Loan 6- Sanctioned Rs. 100 Million (Outstanding Balance - Rs. 84.28 Million as on 31st March 2026) is repayable in monthly
installments of Rs. 1.17 Million. Last date of Repayment is December 2032. Rate of Interest Linked with 3M- Repo Rate i.e. 7.85% p.a.

2 Vehicle loans are taken HDFC bank Ltd , repayable in next 5 years. Loan including current maturities are secured by way of
hypothecation over vehicles. Out of the outstanding Loans of Rs. 36.09 Million as on 31st March 2026, Rs. 12.73 Million will due in next
1 year.

3 Unsecured loan is taken from Directors, Friends, relatives. As Explained the same will become due for payment after a period of 1 year.

Annexure - VI : Notes to the Audited Standalone Statement
(All amounts in ? Million, except as otherwise stated)

Note 31: Earnings per share (EPS)

Basic Earnings per share (''EPS'') amounts are calculated by dividing the Profit/(loss) for the year attributable to
equity holders of the Company by the weighted average number of equity shares outstanding during the

Diluted EPS amounts are calculated by dividing the Profit/(loss) attributable to equity holders of the Company
by the weighted average number of equity shares outstanding during the year plus the weighted average
number of equity shares that would be issued on conversion of all the dilutive potential equity shares into

The following is a reconciliation of the equity shares used in the computation of basic and diluted earnings

Note 4 : The Company had issued 96,608 Compulsorily Convertible Debentures (CCDs) at a face value of ^10
each at a pre:miu:m of ^725 per debenture, aggregating to ?71.01^dillion on 16th September, 2024. The CCDs
were :mandatorily convertible into Equity Shares at a ration of 1:1 (one Equity share for each CCD held) within
18 months of issue. In accordance with terms of the issue, these CCDs were converted into Equity Shares on
20th August, 2025. However, as the company had issued bonus shares during the year ended March 31, 2025
in the ratio of 1:4 (four bonus shares for every one share held), the company had allotted Equity shares to
CCD holders in the ratio of 1:5 (one equity share and four bonus shares for each CCD held), resulting in the
allotment of 4,83,040 Equity Shares of the Company.

Annexure - VI : Notes to the Audited Standalone Statement
(All amounts in ? Million, except as otherwise stated)

NOTE 32: DIFFERENCES BETWEEN IND AS & INDIAN GAAP

A) PRINCIPAL DIFFERENCES BETWEEN IND AS AND INDIAN GAAP

I. Deferred Tax

The Company has accounted for deferred tax on the various adjustments between Indian GAAP and IND AS at their
effective tax rate.

II. Defined Benefit Obligation

Under previous GAAP, Company has been charging the remeasurement (gain)/loss of employee benefits to profit anc
loss account whereas under Ind AS financial statements such (gain) /loss is accounted in Statement of Other
Comprehensive Income along with the corres impact.

III. Prior Period Items

Under Indian GAAP, the impact of prior period items is required to be included in current period statement of profit and
loss. However as per Ind AS-8 an entity is required to correct prior period errors retrospectively by restating the
comparative amounts for the prior period presented in which the error occurred. if the error occurred before the earliest
prior period presented, it will restate the opening balance of assets and equity for the earliest prior period presented.

The Company''s objectives when managing capital is to safeguard continuity, maintain a strong credit
rating and healthy capital ratios in order to support its business and provide adequate return to
shareholders through continuing growth and maximise the shareholders value. The Company''s overall
strategy remains unchanged from previous year. The Company sets the amount of capital required on the
basis of annual business and long-term operating plans which include capital and other strategic
investments. The funding requirements are met through a mixture of equity, internal fund generation and
borrowed funds. The Company''s policy is to use short term and long-term borrowings to meet anticipated
funding requirements. The Company monitors capital on the basis of the net debt to equity ratio. The
Company''s is not subject to any externally imposed capital requirements. Net debt are long term and short
term debts as reduced by cash and cash equivalents (including restricted cash and cash equivalents) and
short-term investments. Total Equity comprises all components of equity.

NOTE 38: FINANCIAL INSTRUMENTS
Accounting classification and fair values

The following table shows the carrying amounts and fair values of financial assets

and financial liabilities, including their levels in the fair value hierarchy. It does not

include fair value information for financial assets and financial liabilities not

measured at fair value if the carrying amount is a reasonable approximation of fair
value.

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that an entity can access at
the measurement date.

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly or indirectly

Level 3: For assets & liabilities where Fair value is not observable

The Company’s board of directors has overall responsibility for the establishment and oversight of the Company’s risk management
framework. The Company’s risk management policies are established to identify and analyze the risks faced by the Company, to set
appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed
regularly to reflect changes in market conditions and the Company’s activities. The Company, through its training and management
standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand
their roles and obligations.

1. Credit Risk

The Company is exposed to credit risk primarily from cash and cash equivalents, bank deposits, trade receivables, and other financial
assets. Credit risk arises from the possibility that a counterparty may fail to meet its financial obligations, leading to a financial loss.

i. Cash and Cash Equivalents and Bank Deposits: The Company minimizes credit risk associated with cash and cash equivalents and
bank deposits by maintaining deposits with banks having high credit ratings, as assigned by domestic credit rating agencies. This
reduces the risk of default by banks.

ii. Trade Receivables : Credit risk on trade receivables is managed by regular monitoring of the outstanding amounts and performing a
detailed assessment of recoverability. The Company has established policies for aging analysis, and where applicable, provisions for
expected credit losses (ECL) are recognized.

2. Liquidity Risk

Liquidity risk is the risk that the Company may not be able to meet its financial obligations as they fall due, without incurring
significant losses. The Company manages liquidity risk by maintaining adequate reserves, banking facilities, and by continuously
monitoring forecast and actual cash flows.

i. Cash Flow Management: The Company continuously monitors its cash flow requirements to ensure that it has sufficient liquidity to
meet its operational and financial obligations, including trade payables, financial liabilities, and tax obligations. Regular cash flow
forecasting is performed to assess the timing and amount of future cash inflows and outflows.

ii. Access to Credit Facilities: The Company has access to various credit facilities from banks, which provide flexibility to meet short¬
term and long term liquidity needs.

iii. Maturity Analysis of Financial Liabilities: The Company has established procedures to regularly monitor and assess the maturity
profile of its financial liabilities, including trade payables, loans, and other financial obligations. The maturity analysis helps ensure
that the Company has enough liquidity to meet these obligations in a timely manner.

iv. Cash and Cash Equivalents: The Company maintains a sufficient level of cash and cash equivalents to manage day-to-day
operational expenses and meet unforeseen liquidity requirements. This liquidity buffer is designed to prevent disruptions to business
operations due to short-term liquidity shortages.

3. Market Risk
a) Foreign Currency Risk

The Company undertakes limited transactions denominated in foreign currencies; consequently, exposures to exchange rate
fluctuations arise. The Company''s exposure to currency risk relates primarily to the Company''s operating activities when transactions
are denominated in a different currency from the Company''s functional currency. The Company has not taken derivative instruments
to hedge the foreign currency risk. The Company continuously monitors the fluctuations in currency risk and ensures that the
company does not have adverse impact on account of fluctuation in exchange rate.

As at the end of period / year, there were no Trade Receivable and Trade Payables outstanding in foreign currency. Hence, sensitivity
analysis with respect to foreign exchange risk is not require.

b) Interest Rate Risk

Interest rate risk primarily arises from floating / fixed rate borrowing, including various short-term and long-term loan. 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.
The Company''s exposure to the risk of changes in market interest rates arises on borrowings with floating interest rate from banks.

Additional regulatory information required by Schedule III of Companies Act, 2013:

A. Balance of Debtors & Creditors & Loans & advances taken are subject to confirmation and consequential adjustments, if any. Debtors & creditors balance has been shown
separately and the advances received and paid from/to the parties is shown as advance from customer and advance to suppliers.

B. The company has no transactions, which are not recorded in the books of accounts and which are surrendered or disclosed as income during the year in the tax assessment or

in search or survey or under any other relevant provision ofthe Income Tax Act, 1961.

C. The Company has not traded or invested in crypto currency or virtual currency for the for the year ended March 31, 2026, March 31, 2025, 01st April 2024.

D. The Company did not have any transaction with companies that are struck off under section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956 during

the year ended March 31, 2026, March 31, 2025 and 01st April 2024

E. The company has not been declared as willful defaulter by any bank or from any other lender during the year ended March 31, 2026, March 31, 2025 and 01st April 2024.

F. The company has registered all the charges which are required to be registered under the terms of the loan and liabilities and submitted Documents with ROC within the period
as required by Companies Act, 2013.

G. The Company have 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: (a) 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 (b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

H. The Company have not given any fund to any person(s) or entity(ies), including foreign entities (Receiving Party) with the understanding (whether recorded in writing or
otherwise) that the Receiving Party shall: (a) 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 (b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

I. The Company is in compliance with the number of layers prescribed under clause (87) of section 2 of the Companies Act, 2013 read with the Companies (Restriction on number
of Layers) Rules, 2017 (as amended).

J. The Company does not hold any benami property, and no proceedings have been initiated or are pending against the Company under the Prohibition of Benami Property
Transactions Act, 1988.

K. The Company has taken working capital loans from various Banks. Company has filed quarterly statements of Current Assets with the banks that are in principle in agreement
with the books of accounts.

L. The Company has covered under this Act do not have any transactions with companies struck off

NOTE 43 : LOANS & ADVANCES TO PROMOTERS , DIRECTORSHIP & THEIR RELATED PARTIES

During the reporting period, the Company has not granted any loans, advances in the nature of loans, or provided any
guarantees or securities to any of its directors, promoters, key managerial personnel, or their relatives, whether jointly
or severally.

Furthermore, there are no outstanding balances in respect of any such transactions from previous periods. The
Company has complied with the applicable provisions of the Companies Act, 2013 and relevant regulations issued by
statutory authorities in this regard.

Note:

The Company has certain disputes, lawsuits and claims, which arise in from time to time in the ordinary course of
business. The amount in some of the cases can not be ascertained and in some cases not material.

NOTE 45: PRIOR PERIOD ITEMS ALONG WITH IMPACT ANALYSIS

As per IND AS 8 an entity is required to correct prior period error retrospectively by restating the comparative
amounts for the prior period presented in which the error occurred. If the error occurred before the earliest prior period
presented, it will restate the opening balance of assets, liabilities and equity for the earlier prior period presented.
Therefore, in terms of provisions of IND AS 8, the impact of the prior period items identified in the current year and
relating to the previous year have been Audited and for the period before the last comparative period shown have
been adjusted in the opening balance of retained earnings.

NOTE 46 : EVENTS OCCURING AFTER THE BALANCE SHEET DATE

. I

The Company evaluates events and transactions that occur subsequent to the balance sheet date but
prior to approval of the financial statements to determine the necessity for recognition and/or reporting
of any of these events and transaction in the financial statements.

Events Required Adjus tments in Financial Statement: Nil.

Non-Adjus ting Events :

Shareholding of Promoters (as at signing date)

Subsequent to the reporting date but before the date of signing of the Audited Standalone Statement,
the list of promoters and their current shareholding is as follows:

NOTE 47: SEGMENT INFORMATION

A) The principal business of the Company is Processing and Sale of Textile Fabric. All other activities
of the Company revolve around its principal business. The ^Tanaging Director of the Company has
been identified as the Chief Operating Decision Maker (CODM).

The CODM evaluates the Group’s performance and allocates resources based on an analysis of
various performance indicators of the Company as a single unit. The CODM has concluded that there
is only one reportable operating segment, as defined under Ind AS 108 — Operating Segments, i.e.,
’Processing of Textile Fabrics"

B) Disaggregation of revenue from operations by geographical area has been provided in Note No. 42

C) All non-current assets of the Group are located within India.

D) Information about ^Tajor Customers

The details of single customers who contributed 10% or more to the Company’s revenue during the
year financial year ended on !M!arch 31, 2026, !M!arch 31, 2025 and 01st April 2024. are provided in Note
No. 42

I I

NOTE 48: PENDING REGISTRATION OF OR MODIFICATION OR SATISFACTION OF CHARGE
WHICH REQUIRED TO BE FILED WITH ROC

. . . ..... I I .

There are no pending registration or modification or satisfaction of charge at the end of reporting
periods, which are required to be filed with the Registrar of Companies

50 Note on First Time Adoption of Ind AS:

The accounting policies set out in the note here have been applied in preparing the financial statements for the year ended March 31, 2026, the comparative information presented in
these financial statements for the year ended March 31, 2025 and in the preparation of an opening Ind AS balance sheet at April 1, 2024 [the Company’s date of transition].

In preparing its opening Ind AS Balance Sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting
standards notified under the Companies (Accounting Standards) Rules, 2021 and other relevant provisions of the Companies Act, 2013 (previous GAAP). An explanation of how the
transition from previous GAAP to Ind AS has affected the Company’s financial position, financial performance and cash flows is set out in the following notes.

Mandatory exceptions
b Estimates

An entity’s estimates in accordance with Ind AS at the date of transition shall be consistent with estimates made for the same date in accordance with Indian GAAP [after
adjustments to reflect any difference in accounting policies], unless there is objective evidence that those estimates were in error.

II I I

The Company’s estimates under Ind AS are consistent with the above requirement. Key estimates considered in preparation of the financial statements that were not required
under the previous GAAP are listed below:

- Impairment of financial assets based on the expected credit loss model.

- Discounted value of long term provisions.

~ I I I I

Classification and measurement of financial assets

Ind AS 101 requires an entity to assess classification of financial assets on the basis of facts and circumstances existing as on the date of transition. Further, the standard permits
measurement of financial assets accounted at amortised cost based on facts and circumstances existing at the date of transition if retrospective application is impracticable.
Accordingly, the Company has determined the classification of financial assets based on facts and circumstances that exist on the date of transition. Measurement of the financia
assets accounted at amortised cost has been done retrospectively except where the same is impracticable.

Note on Transition to Ind AS - Reconciliations:

The following reconciliations provide the explanations and quantification of the differences arising from the transition from Indian GAAP to Ind AS in accordance with Ind AS 101:

b Deferred Tax

The impact of transition adjustments together with Ind AS mandate of using balance sheet approach {against profit and loss approach in the Indian GAAP) for computation of
deferred taxes has resulted in charge to Reserves, on the date of transition, with consequential impact to the Statement of Profit and Loss account for the subsequent periods.

c Other comprehensive income

Under Indian GAAP, the Company has not presented other comprehensive income (OCI) separately. Hence, it has reconciled Indian GAAP profit or loss to profit or loss as per
Ind AS. Further, Indian GAAP profit or loss is reconciled to total comprehensive income as per Ind AS.

d Estimates

The estimates at April 1, 2024 and March 31, 2025 are consistent with those made for the same dates in accordance with previous GAAP (after adjustments to reflect any
differences in accounting policies). The estimates used by the Company to present these amounts in accordance with Ind AS reflect conditions on April 1, 2024, the date o
transition to Ind AS and as of March 31, 2025.