0) Provisions, contingent
liabilities and contingent assets:
Provisions are recognised only when:
1) a Company entity has a present obligation (legal or construc¬
tive) as a result of a past event; and
ii) it is probable that an outflow of resources embodying eco¬
nomic benefits will be required to settle the obligation; and
iii) a reliable estimate can be made of the amount of
the obligation
Provision is measured using the cash flows estimated to settle
the present obligation and when the effect of time value of
money is material, the carrying amount of the provision is the
present value of those cash flows. Reimbursement expected in
respect of expenditure required to settle a provision is recog¬
nised only when it is virtually certain that the reimbursement
will be received.
Contingent liability is disclosed in case of:
i) a present obligation arising from past events, when it is not
probable that an outflow of resources will be required to settle
the obligation; and
ii) a present obligation arising from past events when no reli¬
able estimate is possible.
Contingent assets are disclosed where an inflow of economic
benefits is probable. Provisions, contingent liabilities, and con¬
tingent assets are reviewed at each Balance Sheet date.
Where the unavoidable costs of meeting the obligations under
the contract exceed the economic benefits expected to be re¬
ceived under such contract, the present obligation under the
contract is recognised and measured as a provision.
?) Commitment:
Commitments are future liabilities for contractual expenditure,
classified and disclosed as follows:
a) estimated amount of contracts remaining to be executed on
capital account and not
provided for.
b) uncalled liability on shares and other investments
partly paid.
?) funding related commitment to associate companies; and
d) other non-cancellable commitments, if any, to the extent
they are considered material and relevant in the opinion
of management.
Other commitments related to sales/procurements made in the
normal course of business are not disclosed to avoid exces¬
sive details.
q) Statement of cash flows:
Statement of cash flows is prepared segregating the cash
flows into operating, investing and financing activities. Cash
flow from operating activities is reported using indirect method
adjusting the net profit for the effects of:
i) changes during the period in operating receivables and
payables transactions of a non-cash nature;
ii) non-cash items such as depreciation, provisions, deferred
taxes, unrealised gains and losses; and
iii) all other items for which the cash effects are investing or fi¬
nancing cash flows.
Cash and cash equivalents (including bank balances) shown in
the Statement of Cash Flows exclude items which are not
available for general use as on the date of Balance Sheet.
r) Earnings per share
The Company presents basic and diluted earnings per share
data for its ordinary shares. Basic earnings per share is calcu¬
lated by dividing the profit or loss attributable to ordinary share¬
holders of the Company by the weighted average number of
ordinary shares outstanding during the year.
Diluted earnings per share is determined by adjusting the profit
or loss attributable to ordinary shareholders and the weighted
average number of ordinary shares outstanding, adjusted
for own shares held, for the effects of all dilutive potential
ordinary shares.
(i) New and amended standards
adopted by the Company
The Ministry of Corporate Affairs vide notification dated May 7,
2025 and August 13, 2025 notified the Companies (Indian
Accounting Standards) Amendment Rules, 2025 and
Companies (Indian Accounting Standards) Second
Amendment Rules, 2025, respectively, which amended certain
accounting standards (see below), and are effective for annual
reporting periods beginning on or after April 1,2025:
(a) Classification of Liabilities as Current or Non-current and
Non-Current Liabilities with Covenants - Amendments to Ind
AS 1
As a result of the adoption of the amendments to Ind AS 1, the
Company changed its accounting policy for the classification
of borrowings:
“Borrowings are classified as current liabilities unless, at the
end of the reporting period, the Company has a right to defer
settlement of the liability for at least 12 months after the report¬
ing period. Covenants that the Company is required to comply
with, on or before the end of the reporting period, are consid¬
ered in classifying loan arrangements with covenants as
current or non-current. Covenants that the Company is
required to comply with after the reporting period do not affect
the classification.”
This new policy did not result in a change in the classification
of the Company's borrowings. The Company did not make
retrospective adjustments as a result of adopting the
amendments to Ind AS 1.
(b) Supplier Finance Arrangements -Amendments to Ind AS 7
and Ind AS 107
As a result of the adoption of the amendments to Ind AS 7 and
Ind AS 107, the Company provided new disclosures for liabili¬
ties under supplier finance arrangements in note 16.
(c) International Tax Reform -Pillar Two Model Rules -
Amendments to Ind AS 12
The Company is not within the scope of the OECD Pillar
Two Model Rules, as Pillar Two legislation has not yet
been enacted in any of the jurisdictions in which the
Company operates.
(d) Lack of Exchangeability - Amendments to Ind AS 21
The amended Ind AS 21 have added requirements to help en¬
tities to determine whether a currency is exchangeable into an¬
other currency, and the spot exchange rate to use where it is
not. These amendments did not have any material impact on
the amounts recognised in prior periods and are not expected
to significantly affect the current or future periods.
(ii) New standards or amendments not yet adopted
Classification of Liabilities as Current or Non-current and Non¬
Current Liabilities with Covenants - Amendments to Ind AS 1 -
This amendment also includes specific provisions that will take
effect for reporting periods beginning on or after April 1, 2026,
as outlined below.
Under the existing Ind AS 1, where there is a breach of a mate¬
rial provision of a long-term loan arrangement on or before the
end of the reporting period with the effect that the liability be¬
comes payable on demand on the reporting date, the entity
does not classify the liability as current, if the lender agreed,
after the reporting period and before the approval of the finan¬
cial statements for issue, not to demand payment as a conse¬
quence of the breach. However, the amended requirements
stipulate that entities will no longer be permitted to consider
lender waivers that are granted after the reporting date but be¬
fore the financial statements are approved for the purpose of
classification of loans. This amendment is required to be ap¬
plied retrospectively in accordance with Ind AS 8. The
Company does not expect this amendment to have an impact
on its operations or financial statements.
CWIP ageing (as at 31 March 2026, ? Lakhs): Projects in progress — less than 1 year 699.02; 1-2 years, 2-3 years, more than 3
years — nil. Projects temporarily suspended — nil. There is no project whose completion is overdue or has exceeded its cost com¬
pared to the original plan during 2025-26 or 2024-25. The Company has not revalued its property, plant and equipment, intangible
assets or right-of-use assets during 2025-26 or 2024-25.
Notes: (1) The Company has only one class of shares, equity shares of ?2/- par value; each holder is entitled to one vote per
share. (2) On liquidation, holders of equity shares are entitled to receive the remaining assets of the Company after distribution of
all preferential amounts (no preferential amounts currently exist), in proportion to shares held.
(3) The Company raised ?4,758.28 Lakhs through a Rights Issue of 1,35,95,105 equity shares at ?35/- each (including premium of
?33/-), allotted on 24 April 2025. (4) The Company allotted 9,51,65,735 Bonus Equity Shares in the ratio 1:1 to members on 7 July
2025 (previously, 1,16,52,947 Bonus Equity Shares were allotted in the ratio 5:2 on 17 October 2020).
Note 34 — Disclosure under Ind AS 19, Employee Benefits
Defined Contribution Plans. The Company has certain defined contribution plans; contributions are made to provident fund in
India for employees at 12% of basic salary as per regulations, to a registered provident fund administered by the Government. The
Company's obligation is limited to the amount contributed, with no further contractual or constructive obligation.
Defined Benefit Plan. The Company has a defined benefit gratuity plan, governed by the Social Security Code 2020 (effective
21/11/2025; earlier under the Payment of Gratuity Act, 1972). Every employee completing five or more years of service receives
gratuity at 15 days' salary (last drawn) for each completed year of service. The plan is funded.
Note 35 — Segment Information (Ind AS 108)
Operating segments are components of the Company whose operating results the Chief Operating Decision Maker (the Managing
Director) regularly reviews to allocate resources and assess performance, and for which discrete financial information is available.
The Company is engaged primarily in the business of manufacturing & trading of readymade garments only; considering risks and
returns, organisation structure and internal reporting, all operations and non-current assets of the Company are in India.
Accordingly, there are no separate reportable segments as per Ind AS 108.
Fair Value Hierarchy
Level 1 — quoted price (unadjusted) in active markets for identical assets or liabilities. Level 2 — inputs other than quoted prices
within Level 1 that are observable, directly or indirectly. Level 3 — inputs not based on observable market data. As at 31 March
2026 and 31 March 2025, the Company has no financial assets or liabilities (investments in equity instruments, derivative financial
instruments) measured at fair value on a recurring basis at any level.
Note 39 — Financial Risk Management Objectives and Policies
The Company's financial liabilities include loans and borrowings and trade & other payables; the main purpose of these is to fi¬
nance the Company's operations. The Company's financial assets include trade & other receivables, deposits and cash & cash
equivalents. The Company's overall risk management programme focuses on the unpredictability of financial markets and seeks to
minimise potential adverse effects on financial performance. The Company does not acquire or issue derivative financial instru¬
ments for trading or speculative purposes.
Credit Risk — the risk that a counterparty may not meet its obligations under a financial instrument or customer contract.
Customer credit risk is managed by the marketing department per the Company's established policy and procedures; the Company
reviews customer creditworthiness on an ongoing basis and estimates expected credit loss based on past data and experience.
The maximum exposure to credit risk is the carrying value of trade receivables (Note 6), as the Company holds no collateral. An
impairment analysis is performed at each reporting date, based on historical data of credit losses.
Liquidity Risk — the risk that the Company may not be able to settle its obligations at a reasonable price; managed by the finance
department with oversight from senior management, monitoring net liquidity through expected cash flows, and maintaining a bal¬
ance between continuity of funding and flexibility through cash credits and term loans.
Market Risk — the risk that the fair value of future cash flows of a financial instrument may fluctuate due to changes in market
prices (foreign exchange rates, interest rates, etc). Foreign Currency Risk relates primarily to import and export activities; the
Company monitors foreign exchange fluctuations continuously and, during the current or previous financial year, did not enter into
any derivative instruments for trading or speculative purposes and has no outstanding foreign currency exposure. Interest rate
risk relates primarily to long-term debt.
Note 40 — Capital Management
The Company's objective when managing capital (net debt and equity) is to safeguard its ability to continue as a going concern,
provide returns to shareholders and benefits to other stakeholders, while protecting and strengthening the Balance Sheet through
an appropriate balance of debt and equity funding. Funding needs are met through equity, cash generated from operations and
short-term bank borrowings. The Company monitors capital using the gearing ratio (net debt divided by sum of capital and net
debt); there have been no breaches of financial covenants for reported periods.
Note 41 — Contribution to Political Parties
Contribution to political parties during 2025-26: ? Nil (PY ? Nil).
Note 42 — Investor Education and Protection Fund
No amounts are due and outstanding to be credited to the Investor Education & Protection Fund as at 31 March 2026.
Note 43 — Events after the Reporting Date
There have been no events after the reporting date requiring disclosure.
Note 44 — Additional Disclosures
• The Company has not revalued its Property, Plant and Equipment; disclosure regarding valuation by a registered valuer
under the Companies (Registered Valuers and Valuation) Rules, 2017 is accordingly not applicable.
• During the year, the Company has not granted any Loans or Advances in the nature of loans, repayable on demand
or without specifying terms/period of repayment, to promoters, directors and KMPs, severally or jointly with any
other person.
• No proceedings have been initiated or are pending against the Company for holding any benami property under the
Benami Transactions (Prohibition) Act, 1988 and rules made thereunder, for the financial year 2025-26.
• The Company has taken borrowings from banks/financial institutions on the basis of security of current assets; the quar¬
terly returns or statements filed with such banks/financial institutions are generally in agreement with the unaudited
books of account for the respective quarter.
• The Company has not been declared a wilful defaulter by any bank, financial institution or other lender.
• The Company has not entered into any transactions with companies struck off under Section 248 of the Companies Act,
2013 or Section 560 of the Companies Act, 1956 during the financial year ended 31.03.2026.
• The Company does not have any charges or satisfaction yet to be registered with the Registrar of Companies beyond
the statutory period.
• The Company does not have any investment through more than two layers of investment companies as per Section
2(87)(d) and Section 186 of the Companies Act, 2013.
• During the year the Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), includ¬
ing foreign entities (Intermediaries), with the understanding that the Intermediary shall lend or invest on behalf of the
Company or provide guarantee/security on behalf of Ultimate Beneficiaries.
• During the year the Company has not received any fund from any person(s) or entity(ies), including foreign entities
(Funding Party), with the understanding that the Company shall lend or invest on behalf of the Funding Party or provide
guarantee/security on behalf of Ultimate Beneficiaries.
• The Company does not have any transactions not recorded in the books of accounts during the year, nor any un¬
recorded income/related assets of earlier years recorded in the books during the year.
• The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
Note 47 — Regrouping of Previous Year Figures
Previous year figures are regrouped and reclassified to make them comparable with Ind AS presentation.
Note 48 — Approval of Financial Statements
The above financial statements have been reviewed by the Audit Committee and subsequently approved by the Board of Directors
at its meeting held on 11th May 2026.
|