General Reserve:

General reserve is used from time to time to transfer profits from retained profits. Ther is no policy of regular transfer.

Capital Reserve :

Capital reserve on consolidation represents excess of the Parent's share of the net fair value of the Investments in Associates over the cost of the Investment is recognised directly in other equity as capital reserve upon transition.

Retained earnings:

Retained earning are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to shareholders. (Refer statement of changes in equity.)

14.1 Rupee Term Loan and Working Captial Finance from Bank is secured by a First Charge, by way of equitable mortgage of specified assets under this loan.

14.2 Hire Purchase Loan is secured by hypothecation of specified vehicle purchased under the Scheme.

14.3 Asset Backed Loan is secured by the Hypothecation of personal property of Managing Director.

14.4 All loans are additionally secured by Personal Guarantee of Promoter Director of the Company.

14.5 Term Loan from Bank are repayable in equated monthly installments.

14.6 Repayment of Term Loan :

i) ECLGS III Term Loan - Rs. 423 Lakhs - Balance amount is repayable in 24 equated monthly installments starting from April, 2026.

ii) Rupee Term Loan (Solar Power) - Rs. 233 Lakhs - Balance amount is repayable in 34 equated monthly installments starting from April, 2026.

iii) Rupee Term Loan (Sulzer Loom Spares) - Rs.38 Lakhs - Balance amount is repayable in 34 equated monthly installments starting from April, 2026.

iv) Rupee Term Loan (Reimbursement of Machinery) - Rs. 54 Lakhs - Balance amount is repayable in 34 equated monthly installments starting from April, 2026.

v) Asset Backed Loan - Rs.249 Lakhs - Balance amount is repayable in 38 equated monthly installments starting from April, 2026.

vi) ECGS Working Capital Loan - Rs.1600 Lakhs - Repayment will commence from January 2027 and to be repayable in 36 equated monthly installmets.

vii) Loan from Director - Rs.158 Lakhs - Balance amount is repayable in 20 equated monthly installments starting from April, 2026

14.7 Repayment of Hire Purchase Loan :

Facility 1 - Rs. 7.30 Lakhs - Balance amount is repayable in 17 equated monthly installments starting from April, 2026.

Facility 2 - Rs. 5.12 Lakhs - Balance amount is repayable in 18 equated monthly installments starting from April, 2026.

Facility 3- Rs. 12.85 Lakhs - Balance amount is repayable in 18 equated monthly installments starting from April, 2026.

Facility 4- Rs. 17.89 Lakhs - Balance amount is repayable in 26 equated monthly installments starting from April, 2026.

Facility 5- Rs. 16.18 Lakhs - Balance amount is repayable in 30 equated monthly installments starting from April, 2026.

Facility 6- Rs. 10.77 Lakhs - Balance amount is repayable in 32 equated monthly installments starting from April, 2026.

Facility 7- Rs. 20.55 Lakhs - Balance amount is repayable in 39 equated monthly installments starting from April, 2026.

28.1. The Company has fulfilled export obligations (FIBC Bags Division), net foreign exchange earnings and other conditions, as applicable till date, in terms of schemes of Government of India, for 100% EOU.

As per requirements of IND AS 33, the Basic and Diluted earnings per share for all the periods presented have been computed on 1,00,00,000 Equity Shares of Rs. 5/- each.

29. Financial Risk Management

The Company's principle financial liabilities comprise of borrowings, trade and other payables. The main purpose of these financial liabilities is to manage finances for the Company's operations. The Company's principle financlial assets include loans and advances, trade receivables and cash and bank balances that arise directly from its operations.

The Company also enters into derivative transaction to hedge foreign currency and not for speculative purposes. The Company is exposed to Market Risk, Credit Risk and Liquidity Risk and the Company's Senior Management oversees the management of these risks.

29.1. Market Risk

Market Risk is the risk that the fair value of future cash flows of a financial asset will fluctuate because of changes in market prices. The Company's activities expose it to a variety of financial risks, including the effect of changes in foreign currency exchange rates and interest rates.

29.1. (a). Currency Risk

Foreign Currency risk is the risk that fair value of future cash flow of an exposure will fluctuate because of changes in foreign exchange rates.

The Company's exposure in USD and other foreign currency denominated transactions in connection with export of finished goods, besides import of raw materials, capital goods and spares, etc., purchased in foreign currency, gives rise to exchange rate fluctuation risk. The Company has following policies to mitigate this risk:

The Company has entered into foreign currency forward contracts both for export and import, after taking into consideration of the anticipated foreign exchange inflows / outflows, timing of cash flows, tenure of the forward contract and prevailing foreign exchange market conditions.

Risk sensitivity on Foreign Currency Fluctuations:-

The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks. It hedges a part of these risks by using derivative financial instruments in accordance with its risk management policies.

The foreign exchange rate sensitivity is calculated for each currency by aggregation of the net foreign exchange rate exposure of a currency and a simultaneous parallel foreign exchange rates shift in the foreign exchange rates by 3%.

The following analysis is based on the gross exposure as of the relevant balance sheet date, which could affect the income statement.

29.2. Credit Risk

Credit Risk is that risk that counter party will not meet its obligation under a financial instrument or customer contract, leading to financial loss. The Company is exposed to credit risk from its operating activities, primarily trade receivables and from its financial activities, including deposits with banks and other financial instruments.

a) Trade Receivables

The Company extends credit to customers in the normal course of business. Outstanding customer receivables are regularly monitored. The Company has also taken advances from its customers, which mitigate the credit risks to an extent. An impairment analysis is performed at each reporting date on an individual basis for major customers.

economic conditions and the requirements is met through capital, internal accruals, long term borrowings and short term borrowings.

In order to achieve this overall objective, the Company's capital management, amongst other in order to achive this overall objective, the Company's capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest bearing loans and borrowings that define capital structure requirement.

29.3. Liquidity Risk

Liquidity Risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations without incurring unacceptable losses. The Company's objective is to maintain a balance between continuity or funding and flexibility through the use of Packing Credit and Working Capital Limits. The Company ensures it has sufficient cash to meet its operational needs while maintaining sufficient margin on its undrawn borrowing facilities at all times.

29.4. Capital Management:-

For the purpose of the Company's Capital management, capital includes issued equity capital and all other equity reserves attributable to the equity Shareholders of the Company. The primary objective of the Company's capital management is to safeguard continuity, maintain healthy capital ratios in order to support its business and maximize Shareholders value. The Company manages its capital structure and makes adjustments in light of changes in

During the year ended 31^st March, 2025 and 31^st March, 2026, there are no transfer between Level1 and Level 2 fair value measurements and no transfer into and out of Level 3 fair value measurements and there is no transaction / balance under Level 3.

Fair Valuation Technique:

The Company maintains policies and procedures to value financial assets or financial liabilities using the best and most relevant data available. The fair values of the financial assets and liabilities are included at the amount 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. The following methods and assumptions were used to estimate certain fair values:-

1. Fair value of cash deposits, trade receivables, trade payables and other current financial assets and liabilities approximate their carrying amount largely due to the short term maturities of these instruments.

2. The fair value of derivatives are based on marked to market valuation statements received from banks with whom the Company has entered into the relevant contracts.

Fair value hierarchy:

The following table provides the fair value measurement hierarchy of Company's assets and liabilities, grouped into level 1 to level 3 as described below:-

1. Quoted prices / Published NAV (unadjusted) in active markets for identical assets or liabilities (Level 1).

2. Inputs other than quoted prices included within Level 1 that are observable for the asset or liability (i.e. as prices) or indirectly (i.e. derived from prices) Level 2. It includes fair value of the financial instruments that are not traded in an active market (for example, over the counter derivatives) and are determined by using valuation technique. These valuation techniques maximize the use of observable market data where it is available and rely as little as possible on the Company's specific estimates. If all significant inputs required to fair value an instrument are observable, then the instrument is included in Level 2.

3. Inputs for the asset or liability that are not based on observable market date (i.e. unobservable inputs) Level 3. If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3.

29.6. DISCLOSURE PURSUANT TO INDIAN ACCOUNTING STANDARD 23 BORROWING COST

I. During the year the company has capitalized amount of Rs. 1.67 Lakhs as the borrowing cost.

ii. The Interest rate used for borrowing cost is as follows :

Specific Borrowing - 7.9%

General Borrowings - 9.5%

29.7. The Ministry of Corporate Affairs issued the Companies (Indian Accounting Standards), (Amendments) Rules 2018, notifying the new standard IND AS 115 on Revenue from contracts with customers and it is applicable from 01.04.2018.

- Replaces IND AS 18 Revenue and IND AS 11 Construction contracts

- Establishes a new control based revenue recognition model

- Provides new and more detailed guidance on specific topics such as multiple element arrangements, variables consideration, rights of return, warranties, principal versus agent consideration, consignment arrangements, bill and hold arrangements and licensing, to name a few.

Revenue is recognised at an amount that reflects the consideration to which on entity expects to be entitled in exchange for transferring goods at services to a customer.

Adoption of IND AS 115 is not expected to have any impact on the Companies revenue and profit or loss. The Company expects the revenue recognition to occur at a point in time when the materials are delivered to at the customers in case of FIBC Bags, PP Fabric, PP Yarn, Multifilament Yarn.

30. DISCLOSURE PURSUANT TO INDIAN ACCOUNTING STANDARD 19 - EMPLOYEE BENEFITS Defined Contribution Plan:

Contributions under Defined Contribution Plan as recognised in the Statement of Profit and Loss by the Company are as follows:

Defined Benefit Plan (Gratuity):

The Company provides gratuity to employees as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement / termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service.

The Employees Gratuity Fund Scheme, which is a defined benefit plan, is managed by a trust maintained with Life Insurance Corporation of India (LIC).

The present value of the obligation is determined based on actuarial valuation using Projected Units Credit Method, which recognises each period of service as giving rise to additional units of employees benefit entitlement and measures each unit separately to build up the final obligation.

The following table sets out the details of amount recognised in the financial statements in respect of employee benefit schemes:

34.2 Notes for Significant changes in Ratios from

previous year:

S.No. 3 The variation is due to addition of ECGS Working Capital Term Loan guaranteed by Govt of India to manage the tariff- induced working capital shortages.

S.No. 4 The Positive variation is due to the improvement in the Profitability.

S.No. 5 The Positive variation is due to the improvement in the Profitability.

S.No.7 The significant variation in Return on Investments is due to investment in Mutual funds which are not dividend bearing.

S.No.11.The significant increase in working capital Turnover ratio is due to decrease in current Liabilities.

34.3. Charges / Satisfaction of charges with ROC.

All the charges are registered with ROC within the stipulated time.

34.4. The Company does not have any investments through more than two layers of investments companies as per section 192 (87) (cd) and section 186 of companies Act, 2013.

34.5. There is no Scheme of Arrangements that has been approved in terms of sections 230 to 237 of the Companies Act.

34.6. i. The company has not given any Loans or

Advances in the nature of loans to promoters, directors, KMPs and their related parties (as defined under Companies Act, 2013,) either severally or jointly with any other person.

ii. The title deeds of all the immovable properties are held in the name of the Company.

iii. The Company has not revalued its Property, Plant and Equipment (including Right of use assets) or intangible assets during the year ended 31^st March, 2026.

iv. No Intangible Assets under development during the year.

v. Quarterly statements of Current Assets filed with banks and financial institutions for fund borrowed from those banks and financial institutions on the basis of security of current assets are in agreement with the books of account.

vi. No proceedings have been initiated during the year or are pending against the Company as at 31st March 2026 for holding any benami property under the benami Transactions (Prohibition) Act, 1988 (as amended in 2016) and rules made there under.

vii. The Company has not been declared willful

defaulter by any bank or financial institution or government or any government authority.

viii. The company has not advanced / loaned / invested or received funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

34.7. There were no transaction relating to previously unrecorded income that were surrendered or disclosed as income in the tax assessments under the income tax Act,1961 (43 of 1961).

34.8 Dividend

The Board of Directors wish to conserve the resources for future expansion and growth of the Company. Hence, your Directors have decided not to declare any dividend for the financial year ended 31^st March, 2026.

34.9. The obligation with respect to Corporate Social Responsibility is not applicable to the Company for the financial year 2025 - 2026 since, the company has not

fulfilled any one of criteria provided in section 135 of

the Companies Act, 2013.

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

34.11. Code on Wages, Industrial Relations Code, Code on Social Security, and Occupational Safety, Health and Working Conditions Code which came into force on November 21,2025, became operational with effect from 1st April 2026.

The Central Government has completed the notification of rules in the official gazette for all four codes, after inviting public comments on draft rules.

While central rules are finalized, individual states are in the process of finalizing their respective state rules to fully implement the changes.

The requirement of Basic wages to be at least 50% of total wages for the purpose of statutory dues such as Provident fund, Employees state Insurance scheme, Gratuity will not have any impact on the company as the company has been maintaining higher percentage of basic wages for the purpose of afore mentioned statutory dues since the last financial year.

The state of Tamilnadu has not enforced the code by notifying the rules on the minimum floor wage to be paid. A detailed impact study will be made after the relevant notification by the state government, based on which the management will make changes to the employee cost structures as may become necessary. At this juncture, the management is of the opinion that there would not be any material changes to the existing cost structures that may necessitate provisioning for the year under review.