(B) Significant Accounting policies

I. Statement of compliance:

These Financial Statements have been prepared in accordance with Indian Accounting Standards (referred to as "Ind AS") as
prescribed under Section 133 of the Companies Act, 2013 (Act) read with Companies (Indian Accounting Standards) Rules as
amended from time to time. The Financial Statements have been prepared under historical cost convention basis except for
certain financial assets and financial liabilities which have been measured at fair value. Accounting policies have been
consistently applied except where a newly-issued accounting standard is initially adopted or a revision to an existing accounting
standard requires a change in the accounting policy hitherto in use. The Company's presentation and functional currency is
Indian Rupees and all values are rounded to the Lakhs.

II. Basis of preparation and presentation:

These financial statements have been prepared on historical cost basis, except for certain financial instruments which are
measured at fair value or amortized cost at the end of each reporting period, as explained in the accounting policies below.
Historical cost is generally based on the fair value of the consideration given in exchange for goods and services. Fair value is the
price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants
at the measurement date. All assets and liabilities have been classified as current and non-current as per the Company's normal
operating cycle. Based on the nature of services rendered to customers and time elapsed between deployment of resources and
the realization in cash and cash equivalents of the consideration for such services rendered, the Company has considered an
operating cycle of 12 months.

III. Current and non-current classification:

The Company classifies assets and liabilities in the Balance Sheet as current or non-current based on the following criteria:
Current Assets:

An asset is classified as current if it:

• Is expected to be realized or intended for sale/consumption in the normal operating cycle;

• Is held primarily for trading;

• Is expected to be realized within 12 months after the reporting date,

• Is cash or cash equivalent, unless restricted from use for at least 12 months after the reporting date.

All other assets are classified as non-current.

Current Liabilities:

A liability is classified as current if it:

• Is expected to be settled in the normal operating cycle:

• Is held primarily for trading;

• Is due within 12 months after the reporting date;

• The Company does not have an unconditional right to defer settlement for at least 12 months after the reporting date.

- All other liabilities are classified as non-current.

- Deferred tax assets and liabilities are classified as non-current only

• The Ind AS are prescribed under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules,
2015 and relevant amendment rules issued thereafter.

• Accounting policies are applied consistently, except where new or revised Ind AS requires a change.

The standalone financial statements are presented in Indian Rupees (INR), the Company's functional currency. All financial data
is rounded off to the nearest lakh with two decimals, unless otherwise stated.

IV. Use of estimates & Judgments

The preparation of these financial statements under Ind AS requires management to make judgments, assumptions, and
estimates that affect asset and liability balances, contingent liability disclosures, and income and expenses. These estimates are
reviewed regularly, and changes are recognized prospectively.

The key areas involving significant judgments and estimates include:

• Useful lives of property, plant & equipment;

• Valuation of inventories;

• Measurement of recoverable amounts of assets / cash-generating units;

• Assets and obligations relating to employee benefits;

• Evaluation of recoverability of deferred tax assets; and

• Provisions and Contingencies

V. Functional and presentation currency:

These financial statements are presented in Indian Rupees (INR), which is the Company's functional currency. All financial
information presented in INR has been rounded to the nearest lakhs, except as stated otherwise.

VI. Significant accounting policies

A. Revenue recognition

Revenue from contract with customers Revenue from contracts with customers is recognized upon transfer of control of
promised goods/ products to customers at an amount that reflects the consideration to which the Company expect to be
entitled for those goods/ products. To recognize revenues, the Company applies the following five-step approach:

• Identify the contract with a customer,

• Identify the performance obligations in the contract,

• Determine the transaction price,

• Allocate the transaction price to the performance obligations in the contract, and

• Recognize revenues when a performance obligation is satisfied.

1. Sale of goods

Revenue is measured at the fair value of the consideration received or receivable. The Company recognises revenues on sale of
products, net of discounts, sales incentives, rebates granted, returns, sales taxes/GST and duties when the products are
delivered to customer or when delivered to a carrier for export sale, which is when title and risk and rewards of ownership pass
to the customer. Export incentives are recognised as income as per the terms of the scheme in respect of the exports made and
included as part of export turnover.

Revenue from sales is recognised when control of the products has transferred, being when the products are delivered to the
customer, the customer has full discretion over the channel and price to sell / consume the products, and there is no unfulfilled
obligation that could affect the customer's acceptance of the products. Delivery occurs when the products have been shipped to
the specific location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has
accepted the products in accordance with the sales contract or the acceptance provisions have lapsed.

2. Interest income

Interest income from a financial asset is recognized when it is probable that the economic benefits will flow to the Company and
the amount of income can be measured reliably. Interest income is accrued, by reference to the principal outstanding and at the
effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected
life of the financial asset to that asset's net carrying amount on initial recognition.

3. Dividends

Dividend income is accounted for when the right to receive the same is established, which is generally when shareholders
approve the dividend.

4. Rent Income, Income from Carbon Credit and Other income

Rent income, income from carbon credits, and other income earned during the year are recognized on an accrual basis when the
right to receive such income is established. Rent income is accounted for as it becomes due under lease agreements, At the end
of the reporting period, any income related to carbon credits that have been sold but for which payment has not yet been
received is recognized as revenue, and corresponding receivables are recorded in the statement of financial position. Other
income, such as profit from the sale of vehicles or mutual fund investments, is recognized when the transaction is completed and
the right to receive the income is established, provided it is measurable and probable that the economic benefits will flow to the
entity.

B. Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a
substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the asset. Qualifying
assets are assets that necessarily take a substantial period of time to get ready for their intended use or sale. All other borrowing
costs are expensed in the period in which they occur. Borrowing costs consist of interest and other costs that a company incurs
in connection with the borrowing of funds.

Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying asset is
deducted from the borrowing costs eligible for capitalization.

C. Export Benefits

Duty free imports of raw materials under advance license for imports, as per the Foreign Trade Policy, are matched with the
exports made against the said licenses and the net benefits / obligations are accounted by making suitable adjustments in raw
material consumption.

D. Taxes

1. Current income tax

Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to tax authorities,
based on enacted or substantively enacted tax rates and laws at the reporting date in the operating country.

Current tax items are recognized in correlation with the underlying transaction, either in OCI or directly in equity.

Management periodically reviews tax positions subject to interpretation and recognizes provisions when necessary.

2. Deferred tax

Deferred tax is provided using the balance sheet approach on temporary differences between the tax bases of assets and
liabilities and their carrying amounts at the reporting date.

Deferred tax assets relate to:

• deductible temporary differences;

• carry forward of unused tax losses; and

• carry forward of unused tax credits.

Deferred tax assets are reviewed each reporting date and reduced if it is no longer probable that taxable profits will allow
utilization. Unrecognized deferred tax assets are reassessed and recognized when probable.

Deferred tax assets and liabilities are measured at tax rates expected to apply when realized or settled, based on enacted or
substantively enacted rates at the reporting date.

Deferred tax on items recognized outside profit or loss is recognized in OCI or equity, matching the underlying transaction.

Deferred tax assets and liabilities are offset when a legally enforceable right exists, and they relate to the same taxable entity
and authority.

MAT credit is recognized as an asset only if there is convincing evidence of normal income tax payment during the specified
period. It is created as a credit to the Statement of Profit and Loss and reviewed at each Balance Sheet date, with write-downs if
evidence no longer supports realization.

E. Leases

The Company, as a lessee, recognizes 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. Initially the right-of-use assets measured at cost which comprises initial cost of
the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs
incurred. Subsequently measured at cost less any accumulated depreciation/ amortization, accumulated impairment losses, if
any and adjusted for any re measurement of the lease liability.

I. Lease liability is initially recognized at the present value of lease payments not yet paid during the lease term.

II. Right-of-use asset is measured at cost, comprising the initial lease liability, lease payments made before commencement (less
incentives), restoration costs, and initial direct costs.

III. Lease liability is subsequently measured using the effective interest method. The ROU asset is depreciated as per Ind AS 16.

IV. For short-term and low value leases, the Company recognises the lease payments as an operating expense on a straight-line
basis over the lease term.

F. Employee Benefits

A liability is recognized for benefits accruing to employees in respect of wages and salaries, annual leave and sick leave in the
period the related service is rendered at the undiscounted amount of the benefits expected to be paid in exchange for that
service.

Liabilities recognized in respect of short-term employee benefits are measured at the undiscounted amount of the benefits
expected to be paid in exchange for the related service.

Post employment and other long term employee benefits are recognized as an expense in the profit & loss account for the year
in which the liabilities are crystallized.

1. Long-term employee benefits

Post-employment and other employee benefits are recognized as an expense in the statement of profit and loss for the period in
which the employee has rendered services. A liability is recognized for benefits accruing to employees in respect of wages and
salaries, annual leave and sick leave in the period the related service is rendered at the undiscounted amount of the benefits
expected to be paid in exchange for that service.

2. Defined contribution plans

The company pays provident fund contributions to publicly administered provident funds as per local regulations. The company
has no further payment obligations once the contributions have been paid. Company is complying with the provisions of Gratuity
Plan as required as per INDAS 19 as per Actuarial Report.

G. Property, plant and equipment

Freehold land is carried at historical cost. Other property, plant, and equipment (PPE) are stated at acquisition cost, including
directly attributable expenses to prepare the asset for use. Subsequent costs are capitalized only if future economic benefits are
probable and cost is measurable; otherwise, they are expensed. Components replaced are derecognized. Repairs and
maintenance are charged to profit or loss when incurred.

Spare parts qualifying as PPE are capitalized and depreciated when ready for use, possibly from purchase date if readily
available.

Capital work in progress (CWIP) is stated at cost, including direct and incidental expenses during implementation, and
transferred to PPE on commissioning. Pre-operating costs are expensed as incurred.

Decommissioning costs, if provision criteria are met, are included in the asset's cost.

PPE is derecognized on disposal or retirement; resulting losses are recognized in profit or loss.

Depreciation methods, estimated useful lives and residual value

Depreciation is calculated to allocate the cost of assets, net of their residual values, over their estimated useful lives.
Components having value significant to the total cost of the asset and life different from that of the main asset are depreciated
over its useful life. However, land is not depreciated. The useful lives so determined are as follows:

Depreciation on fixed assets has been provided in the accounts based on useful life of the assets prescribed in Schedule II to the
companies Act, 2013 based on Straight Line Method.

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial
year end and adjusted prospectively, if appropriate.

Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in profit or loss
within other gains / (losses).

H. Investment properties

Property held for long-term rental yields or capital appreciation, and not occupied by the Company, is classified as investment
property. Investment property is initially measured at cost, including transaction and borrowing costs where applicable.
Subsequent expenditures are capitalized only if future economic benefits are probable and costs can be reliably measured.
Repairs and maintenance costs are expensed when incurred. When part of an investment property is replaced, the carrying
amount of the replaced part is derecognized.

There are no investment properties in the name of the Company.

I. Intangibles

Intangible assets are recognized when future economic benefits are probable and cost can be measured reliably.

Intangible assets acquired separately are initially measured at cost. Those acquired in a business combination are measured at
fair value on acquisition. After initial recognition, intangible assets are carried at cost less accumulated amortization and
impairment losses. Internally generated intangibles, except capitalized development costs, are expensed as incurred.

J. Inventories

Inventories are valued at the lower of cost and net realizable value.

1. Raw materials: cost includes purchase cost and other costs to bring inventories to present location and condition; determined on
a Specific Identification Method basis.

2. Work-in-progress Inventories: Cost includes cost of materials and labour and proportion of manufacturing overheads based on
the normal operating capacity, but excluding the borrowing costs. Overhead Cost is determined at estimated cost.

3. Finished goods Inventories: Cost includes cost of materials and labour and manufacturing overheads based on the normal
operating capacity, but excluding the borrowing costs. Cost is determined on lower of cost or Net Realizable Value.

4. Stores and spares: Costs are measured at cost, which includes the purchase price and other costs incurred to bring the
inventories to their present location and condition. The cost is determined using the weighted average cost method.

5. Fuel: Costs are measured at cost, which includes the purchase price and other costs incurred to bring the inventories to their
present location and condition. The cost is determined using the weighted average cost method.

K. Investment in subsidiaries, joint ventures and associates

Investments in subsidiaries, joint ventures, and associates are recognized at cost as per Ind AS 27, except when classified as held
for sale under Ind AS 105.

There are no investments in subsidiaries, joint ventures, or associates as defined under Ind AS 27.

L. Financial Instruments

• Financial assets

i. Initial recognition and measurement

All financial assets are initially recognized at fair value plus transaction costs, except for those measured at fair value through
profit or loss, whose transaction costs are expensed.

At initial recognition, financial assets are classified as measured at fair value or amortized cost.

ii. Subsequent measurement

For subsequent measurement, financial assets are classified as:

a. Debt instruments at amortized cost

b. Debt instruments at fair value through other comprehensive income (FVTOCI)

c. Financial assets at fair value through profit or loss (FVTPL)

d. Equity instruments at fair value through other comprehensive income (FVTOCI)

iii. Debt instruments at amortized cost

A debt instrument is measured at amortized cost if both:

a. It is held in a business model to collect contractual cash flows; and

b. Contractual terms give rise to cash flows that are solely payments of principal and interest (SPPI).

After initial measurement, these assets are measured at amortized cost using the effective interest rate (EIR) method. Amortized
cost includes any discount, premium, and integral fees. EIR amortization is recognized in finance income, and impairment losses
are recognized in profit or loss. This category generally applies to trade and other receivables.

iv. Debt instrument at FVTOCI

A debt instrument is classified as FVTOCI if both:

a. The business model objective is to collect contractual cash flows and sell the financial assets; and

b. Contractual cash flows represent SPPI.

Debt instruments at FVTOCI are initially and subsequently measured at fair value, with fair value changes recognized in other
comprehensive income (OCI).

v. Financial instrument at FVTPL

FVTPL is the residual category for debt instruments not meeting amortized cost or FVTOCI criteria.

The company may elect to designate debt instruments as FVTPL to avoid accounting mismatches, but has not done so.

Debt instruments at FVTPL are measured at fair value, with all changes recognized in profit or loss.

vi. Equity investments

All equity investments under Ind AS 109 are measured at fair value. Equity instruments held for trading and contingent
consideration in business combinations (Ind AS 103) are classified as FVTPL.

For other equity instruments, the Company may irrevocably elect to present fair value changes in OCI on an instrument-by¬
instrument basis at initial recognition.

If classified as FVTOCI, all fair value changes except dividends are recognized in OCI with no recycling to P&L, but cumulative
gains/losses may be transferred within equity.

Equity instruments at FVTPL are measured at fair value with changes recognized in profit or loss.

vii. Derecognition

A financial asset is derecognized when:

a. Rights to receive cash flows have expired; or

b. The Company has transferred rights to receive cash flows or has a pass-through arrangement and either:

a) Transferred substantially all risks and rewards; or

b) Neither transferred nor retained substantially all risks and rewards but transferred control.

If neither risks and rewards nor control are transferred, the Company continues to recognize the asset to the extent of
continuing involvement and recognizes an associated liability. Both are measured reflecting retained rights and obligations.

viii. Impairment of financial assets

The Company assesses impairment using the Expected Credit Loss (ECL) model for:

a. Financial assets at amortized cost;

b. Financial assets at FVTOCI.

ECL is measured as:

a. 12-month ECL (default events possible within 12 months); or

b. Lifetime ECL (all possible default events over the life of the instrument).

The Company uses the simplified approach for impairment on trade receivables, recognizing lifetime ECL without tracking credit
risk changes, based on a provision matrix reflecting historical defaults and forward-looking estimates.

For other financial assets, if credit risk has not increased significantly, 12-month ECL is applied; if it has, lifetime ECL is used.
Improvement in credit quality reverts impairment to 12-month ECL.

ECL impairment loss or reversal is recognized in profit or loss under 'other expenses".

ix. Financial assets measured as at amortized cost, contractual revenue receivables and lease receivables

ECL is presented as an allowance reducing the net carrying amount of assets on the balance sheet and is not reduced until the
asset meets write-off criteria.

For credit risk assessment, the Company groups financial instruments with shared credit risk characteristics to identify significant
increases in credit risk timely.

The Company has no purchased or originated credit-impaired (POCI) financial assets.

• Financial liabilities

i. Initial recognition and measurement

All financial liabilities are initially recognized at fair value, net of directly attributable transaction costs for loans, borrowings, and
payables.

Financial liabilities include trade and other payables, loans, borrowings, and bank overdrafts.

ii. Subsequent measurement

Measurement of financial liabilities depends on classification:

a. Financial liabilities at fair value through profit or loss

b. Loans and borrowings

c. Financial guarantee contracts

iii. Financial liabilities at FVTPL

Financial liabilities at FVTPL include those held for trading and designated at initial recognition if criteria under Ind AS 109 are
met.

Gains/losses on trading liabilities are recognized in profit or loss.

For liabilities designated as FVTPL, fair value changes due to own credit risk are recognized in OCI and not recycled to P&L but
may be transferred within equity. Other fair value changes go to profit or loss.

The company has not designated any financial liability as FVTPL.

iv. Loans and borrowings

After initial recognition, interest-bearing loans and borrowings are measured at amortized cost using the effective interest rate
(EIR) method. Gains and losses are recognized in profit or loss when the liabilities are derecognized and through the EIR
amortization. Amortized cost includes any discount, premium, and fees that are part of the EIR. The EIR amortization is recorded
as finance costs in the statement of profit and loss.

v. De recognition

A financial liability is derecognized when the obligation is discharged, cancelled, or expires. Replacement or substantial
modification of terms with the same lender is treated as derecognition of the original liability and recognition of a new one. The
difference in carrying amounts is recognized in the statement of profit and loss.

• Off-setting of financial instruments

Financial assets and liabilities are offset in the standalone balance sheet when there is a legally enforceable right to offset and an
intention to settle net or simultaneously realize the assets and settle the liabilities.

M. Impairment of non-financial assets

The Company assesses at each reporting date whether there is any indication of impairment for an asset. If such indication
exists, or annual testing is required, the recoverable amount is estimated. Recoverable amount is the higher of an assets or
CGU's fair value less costs of disposal and its value in use.

For individual assets or CGUs, if the carrying amount exceeds the recoverable amount, the asset is impaired and written down.

Value in use is based on discounted future cash flows using a pre-tax rate reflecting market conditions. Fair value less disposal
cost considers market transactions or valuation models.

Impairment is based on detailed budgets/forecasts covering up to five years, with long-term growth rates beyond. Impairment
losses are recognized in profit and loss, unless previously revalued through OCI, in which case impairment is first adjusted against
revaluation surplus.

N. Cash and cash equivalents

Cash and cash equivalents include cash on hand, bank balances, and short-term deposits with original maturity of three months
or less and insignificant risk of value change. For cash flow statement purposes, they are presented net of bank overdrafts as
part of cash management.

O. Segment accounting

The Chief Operational Decision Maker reviews segment results separately for resource allocation and performance assessment,
based on profit or loss, consistent with financial statements.

Segments are identified by nature of products/services. Segment accounting policies align with those of the Company. Revenues,
expenses, assets, and liabilities are attributed based on operational relevance. Inter-segment revenue is recorded at market/fair
value. Items not allocable are shown as unallocated.

The Company operates in a single reportable segment-textile products—as per Ind AS 108.