P. Provisions, Contingent liabilities, Contingent assets and Commitments
Provisions are recognized when the Company has a present obligation from a past event, likely to result in outflow of resources,
and can be reliably estimated. Reimbursements are recognized separately when virtually certain and are netted against the
related expense in profit and loss.
If material, provisions are discounted using a current pre-tax rate. The unwinding of the discount is recognized as a finance cost.
Contingent liabilities are disclosed when:
1. Obligation exists but outflow is not probable,
2. No reliable estimate is possible, or
3. It is a possible obligation, unless outflow is remote.
Commitments include purchase orders (net of advances) issued for asset completion.
Provisions, contingent liabilities, assets, and commitments are reviewed at each balance sheet date.
Q. Dividend
In accordance with Ind AS 10 - Events after the Reporting Period, the Company recognises a liability for dividends only when the
obligation arises, i.e., when the dividend is approved by the shareholders (in the case of final dividend) or declared by the Board
of Directors (in the case of interim dividend) before the end of the reporting period.
During the year ended 31 March 2025, the Company paid an amount of ^2,11,19,314.00 towards the final dividend relating to
the financial year 2023-24.
No interim dividend was declared, and no final dividend has been proposed for the year ended 31 March 2025. Accordingly, no
provision for dividend has been made in these financial statements for the year ended 31 March 2025.
R. Earnings per share
Basic EPS is calculated by dividing net profit attributable to equity shareholders by the weighted average number of equity
shares outstanding during the period, adjusted for bonus shares and similar events.
Diluted EPS adjusts both profit and shares for the effects of all dilutive potential equity shares, assuming conversion at the
beginning of the period or issue date, if later. Only dilutive instruments that reduce EPS or increase loss per share are
considered.
S. Statement of cash flows
Cash flows are reported using the indirect method. Net profit before tax is adjusted for non-cash items, deferrals, accruals, and
income/expenses related to investing or financing. Cash flows are classified into operating, investing, and financing activities.
Operating Cycle
The operating cycle is the time between the acquisition of assets for processing and their realization in cash and cash
equivalents. The company has identified twelve months as its operating cycle.
T. Foreign currency translation
Items in the financial statements are measured using the currency of the primary economic environment in which the entity
operates ('functional currency'). The financial statements are presented in Indian Rupee (INR), which is the company's functional
and presentation currency.
Transactions and balances
Transactions in foreign currencies are initially recorded at the functional currency spot rates on the transaction date. Monetary
assets and liabilities in foreign currencies are translated at functional currency spot rates at the reporting date.
Non-monetary items measured at historical cost in foreign currency are translated using exchange rates at the transaction dates.
Non-monetary items measured at fair value in foreign currency are translated using exchange rates at the date fair value is
determined. Gains or losses on translation of non-monetary items measured at fair value are recognized in line with the gain or
loss on the fair value change (i.e., in OCI or profit or loss, as applicable).
U. Fair value measurement
The company measures financial instruments, including derivatives, at fair value at each balance sheet date.
Fair value is the price to sell an asset or transfer a liability in an orderly transaction between market participants at the
measurement date, based on the principal market or, if unavailable, the most advantageous market accessible to the company.
Fair value is measured using assumptions market participants would use, assuming they act in their economic best interest.
Valuation techniques applied maximize relevant observable inputs and minimize unobservable inputs.
All assets and liabilities measured at fair value are categorized in a hierarchy based on the lowest significant input:
• Level 1 - Quoted prices in active markets for identical assets or liabilities.
• Level 2 - Valuation techniques with observable inputs directly or indirectly.
• Level 3 - Valuation techniques with unobservable inputs.
Transfers between levels are assessed at each reporting date by re-assessing the categorization.
The Board of Directors sets policies for recurring and non-recurring fair value measurements. It includes heads of investment
properties, mergers & acquisitions, risk management, financial controllers, and CFO.
External valuers are engaged for significant assets, selected annually by the Board of Directors based on expertise,
independence, and standards. Valuers rotate every three years. Management decides valuation techniques and inputs with
external valuers.
At each reporting date, management reviews asset and liability value movements by verifying valuation inputs and comparing
changes with external sources.
Interim valuation results are presented to the Audit Committee and independent auditors, including major valuation
assumptions.
For disclosures, the company classifies assets and liabilities by nature, risk, and fair value hierarchy level.
This note summarizes the fair value accounting policy. Other disclosures include:
Ý Valuation methods, significant estimates and assumptions;
Ý Quantitative fair value hierarchy disclosures;
Ý Investment in unquoted equity shares (discontinued operations);
Ý Financial instruments (including amortized cost).
V. Exceptional items
Occasionally, items of income or expense related to the company's ordinary activities, due to their size, type, or incidence, are
classified as exceptional items. Such items are disclosed separately in the notes to the financial statements to enhance
understanding of the company's performance.
W. Rounding off
All amounts disclosed in the financial statements and notes have been rounded off to the nearest Lakhs as per the requirements
of Schedule III, unless otherwise stated.
• Recent accounting pronouncements
The Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under the Companies
(Indian Accounting Standards) Rules, as amended from time to time. For the year ended March 31, 2025, MCA has notified the
following amendments applicable from April 1, 2024:
♦ Ind AS 117 - Insurance Contracts, which replaces Ind AS 104 and establishes principles for recognition, measurement,
presentation, and disclosure of insurance contracts.
♦ Amendment to Ind AS 116 - Leases, specifically relating to accounting for sale and leaseback transactions by seller-lessees.
The Company has evaluated the applicability and impact of these amendments and has determined that they are not applicable
to its operations, as the Company does not engage in insurance business or sale and leaseback lease transactions under Ind AS.
Accordingly, these amendments have no significant impact on the Company's financial statements for the year ended March 31,
2025.
• Other Statutory Informations:
1. Details of Benami Property: The Company does not have any Benami property, where any proceeding has been initiated or
pending against the Company for holding any Benami property.
2. Details of Charges: The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory period.
3. Details of crypto currency or virtual currency: The Company has not traded or invested in Crypto currency or Virtual Currency
during the financial year.
4. Utilization of borrowed funds and share premium:
The Company has not received any fund from any person(s) or entity(is), 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 on behalf of the Ultimate Beneficiaries.
5. Undisclosed income: The Company does not have any transaction which is not recorded in the books of accounts that has been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or
survey or any other relevant provisions of the Income Tax Act, 1961.
6. Willful Defaulter: The Company is not declared as willful defaulter by any bank or financial institution (as defined under the
Companies Act, 2013) or consortium thereof or other lender in accordance with the guidelines on willful defaulters issued by the
Reserve Bank of India.
7. Compliance with number of layers of companies: As the company has no holding or subsidiary company, requirement with
respect to number of layers prescribed under clause 87 of sub section 2 of the Companies Act, 2013 read with companies
(restriction on number of layers) rules, 2017 is not applicable.
8. Valuation of PP&E, intangible asset and investment property: The Company has not revalued any of its Property, Plant and
Equipment (including Right-of-Use Assets) during the year.
9. The Company has no transaction with any company struck-off under section 248 of the Companies Act, 2013 or Section 560 of
the Companies Act, 1956
As per our report of even date For and on behalf of the Board of Directors
FOR, NAHTA JAIN & ASSOCIATES AARNAV FASHIONS LIMITED
CHARTERED ACCOUNTANTS
FIRM REGN. NO. 106801W
CHAMPALAL AGARWAL SUMIT AGARWAL
DIN:01716421 DIN: 00356863
CHAIRMAN AND DIRECTOR MANAGING DIRECTOR
(CA. GAURAV NAHTA)
PARTNER
MEM. NO. 116735
MILEE KAMDAR RADHAKISHAN SHARMA
COMPANY SECRETARY & COMPLIANCE OFFICER CHIEF FINANCIAL OFFICER
PLACE: AHMEDABAD
DATE: 30-05-2025
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