2.10. Provisions and Contingent Liabilities
2.10.1. Provisions are recognized when there is a present obligation (legal or constructive) as a result of a
past event, it is probable that an outflow of resources embodying economic benefits will be required
to settle the obligation and a reliable estimate can be made of the amount of the obligation;
2.10.2. The expenses relating to a provision is presented in the Statement of Profit and Loss net of
reimbursements, if any;
2.10.3. Contingent liabilities are possible obligations whose existence will only be confirmed by future events
not wholly within the control of the Group, or present obligations where it is not probable that an
outflow of resources will be required or the amount of the obligation cannot be measured with
sufficient reliability;
2.10.4. Contingent liabilities are not recognized in the financial statements but are disclosed unless the
possibility of an outflow of economic resources is considered remote.
2.11. Revenue Recognition2.11.1. Sale of goods:
Revenue is recognised upon transfer of control of promised goods to customers in an amount that
reflects the consideration which the Group expects to receive in exchange for those goods;
Revenue from the sale of goods is recognised at the point in time when control is transferred to the
customer which is usually on dispatch of goods, based on contracts with the customers. Export sales
are recognized on the issuance of Bill of Lading / Airway bill by the carrier;
Revenue is measured based on the transaction price, which is the consideration, adjusted for discounts,
price concessions, incentives, and returns, if any, as specified in the contracts with the customers.
Accruals for discounts/incentives and returns are estimated (using the most likely method) based on
accumulated experience and underlying schemes and agreements with customers. Due to the short
nature of credit period given to customers, there is no financing component in the contract;
Revenue excludes taxes collected from customers on behalf of the government.
Contract Balances:Trade Receivables
A receivable represents the Group right to an amount of consideration that is unconditional (i.e., only
the passage of time is required before payment of the consideration is due).
Contract liabilities
A contract liability is the obligation to transfer goods to a customer for which the Group has
received consideration (or an amount of consideration is due) from the customer. If a customer pays
consideration before the Gorup transfers goods or services to the customer, a contract liability is
recognised when the payment is made, or the payment is due (whichever is earlier). Contract liabilities
are recognised as revenue when the group performs under the contract.
2.11.2. Rendering of Services
Revenue is recognized from rendering of services when the performance obligation is satisfied and the
services are rendered in accordance with the terms of customer contracts. Revenue is measured based
on the transaction price, which is the consideration, as specified in the contract with the customer.
Revenue from services is recognised over a time by measuring progress towards satisfaction of
performance obligation for the services rendered.
Revenue excludes taxes collected from customers on behalf of the government.
2.11.3. Lease license fees are recognised on straight line basis over the terms of the lease;
2.11.4. Export incentives under various schemes notified by the Government have been recognised on the
basis of applicable regulations, and when reasonable assurance to receive such revenue is established;
2.11.5. Revenue from the sale of Development rights is recognised in terms of agreement entered into by the
Group with the Developer;
2.11.6. Interest income is recognized using the effective interest rate (EIR) method;
2.11.7. Dividend income on investments is recognised when the right to receive dividend is established;
2.11.8. Insurance claims are accounted for on the basis of claims admitted / expected to be admitted and
to the extent that the amount recoverable can be measured reliably and it is reasonable to expect
ultimate collection;
2.12. Employee Benefits
2.12.1. Short-term employee benefits
All employee benefits payable within twelve months of rendering the service are classified as short¬
term employee benefits. Benefits such as salaries, wages etc. and the expected cost of ex-gratia are
recognised in the period in which the employee renders the related service.
2.12.2. Post-employment benefits
The Group operates the following post - employment schemes:
- Defined contribution plans such as provident fund and Family pension fund; and
- Defined benefit plans such as gratuity.
Defined Contribution Plans:
Obligations for contributions to defined contribution plans such as provident fund are recognised as
an expense in the Statement of Profit and Loss as the related service is rendered by the employee.
The said benefits are classified as Defined Contribution Schemes as the Group has no further defined
obligations beyond the monthly contributions;
Defined Benefit Plans:
The Group net obligation in respect of defined benefit plans such as gratuity is calculated by
estimating the amount of future benefit that the employees have earned in the current and prior
periods, discounting that amount and deducting the fair value of any plan assets;
The calculation of defined benefit obligation is performed at each reporting period end by a qualified
actuary using the projected unit credit method. When the calculation results in a potential asset for
the Group, the recognised asset is limited to the present value of the economic benefits available in
the form of any future refunds from the plan or reductions in future contributions to the plan;
The current service cost of the defined benefit plan, recognized in the Statement of Profit and Loss as
part of employee benefit expense, reflects the increase in the defined benefit obligation resulting from
employee
service in the current year, benefit changes, curtailments and settlements. Past service costs are
recognized immediately in the Statement of Profit and Loss. The net interest is calculated by applying
the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets.
This net interest is included in employee benefit expense in the Statement of Profit and Loss;
Re-measurement 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;
2.12.3. Other long-term employee benefits
Liability towards other long term employee benefits - leave encashment are determined on actuarial
valuation by qualified actuary by using Projected Unit Credit method;
The current service cost of other long terms employee benefits, recognized in the Statement of Profit
and Loss as part of employee benefit expense, reflects the increase in the obligation resulting from
employee service in the current year, benefit changes, curtailments and settlements. Past service costs
are recognized immediately in the Statement of Profit and Loss. The interest cost is calculated by
applying the discount rate to the balance of the obligation. This cost is included in employee benefit
expense in the Statement of Profit and Loss. Re- measurements are recognised in the Statement of
Profit and Loss.
2.13. Borrowing costs
2.13.1. Borrowing costs consist of interest and other costs incurred in connection with the borrowing of
funds. Borrowing costs also include exchange differences to the extent regarded as an adjustment to
the borrowing costs;
2.13.2. Borrowing costs that are attributable to the acquisition or construction of qualifying assets (i.e. an asset
that necessarily takes a substantial period of time to get ready for its intended use) are capitalized as
a part of the cost of such assets. All other borrowing costs are charged to the Statement of Profit and
Loss. Investment Income earned on the temporary investment of funds of specific borrowings pending
their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.
2.14. Foreign Currency Transactions2.14.1. Monetary items:
Transactions in foreign currencies are initially recorded at their respective exchange rates at the date
the transaction first qualifies for recognition;
Monetary assets and liabilities denominated in foreign currencies are translated at exchange rates
prevailing on the reporting date;
Exchange differences arising on settlement or translation of monetary items are recognised in
Statement of Profit and Loss either as profit or loss on foreign currency transaction and translation or
as borrowing costs to the extent regarded as an adjustment to borrowing costs.
2.14.2. Non - Monetary items:
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated
using the exchange rates at the dates of the initial transactions.
2.15. Government Grants
2.15.1. Government grants are recognized where there is reasonable assurance that the grant will be received
and all attached conditions will be complied with;
2.15.2. When the grant relates to an expense item, it is recognized in Statement of Profit and Loss on a
systematic basis over the periods that the related costs, for which it is intended to compensate, are
expensed;
2.15.3. Government grants relating to Property, Plant and Equipment are presented as deferred income and
are credited to the Statement of Profit and Loss on a systematic and rational basis over the useful life
of the asset;
2.15.4. Export incentives under various schemes notified by the Government have been recognised on the
basis of applicable regulations, and when reasonable assurance to receive such revenue is established.
2.16. Fair Value Measurement
2.16.1. The Group measures certain financial instruments at fair value at each reporting date;
2.16.2. Certain accounting policies and disclosures require the measurement of fair values, for both financial
and non- financial assets and liabilities;
2.16.3. 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 in the principal or, in its absence,
the most advantageous market to which the Group has access at that date. The fair value of a liability
also reflects its non-performance risk;
2.16.4. The best estimate of the fair value of a financial instrument on initial recognition is normally the
transaction price - i.e. the fair value of the consideration given or received. If the Group determines
that the fair value on initial recognition differs from the transaction price and the fair value is evidenced
neither by a quoted price in an active market for an identical asset or liability nor based on a valuation
technique that uses only data from observable markets, then the financial instrument is initially
measured at fair value, adjusted to defer the difference between the fair value on initial recognition
and the transaction price. Subsequently that difference is recognised in Statement of Profit and Loss
on an appropriate basis over the life of the instrument but no later than when the valuation is wholly
supported by observable market data or the transaction is closed out;
2.16.5. While measuring the fair value of an asset or liability, the Group uses observable market data as far as
possible. Fair values are categorised into different levels in a fair value hierarchy based on the inputs
used in the valuation technique as follows:
- Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;
- Level 2: inputs other than quoted prices included in Level 1 that are observable for the assets or
liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices);
- Level 3: inputs for the assets or liability that are not based on observable market data
(unobservable inputs);
2.16.6. When quoted price in active market for an instrument is available, the Group measures the fair value of
the instrument using that price. A market is regarded as active if transactions for the asset or liability
take place with sufficient frequency and volume to provide pricing information on an ongoing basis;
2.16.7. If there is no quoted price in an active market, then the Group uses valuation techniques that maximize
the use of relevant observable inputs and minimise the use of unobservable inputs. The chosen
valuation technique incorporates all of the factors that market participants would take into account in
pricing a transaction;
2.16.8. The Group regularly reviews significant unobservable inputs and valuation adjustments. If third party
information, such as broker quotes or pricing services, is used to measure fair values, then the Group
assesses the evidence obtained from third parties to support the conclusion that these valuations
meet the requirements of Ind AS, including the level in the fair value hierarchy in which the valuations
should be classified.
2.17. 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.
2.17.1. Financial AssetsI. Initial recognition and measurement
The Group recognises financial assets when it becomes a party to the contractual provisions of the
instrument.
All financial assets and financial liabilities are recognised at fair value on initial recognition, except for
trade receivables that do not contain a significant financing component or for which the Group has
applied practical expedient are initially measured at the transaction price determined under Ind AS 115.
Transaction costs that are directly attributable to the acquisition or issue of financial assets and
financial liabilities, which are not at fair value through profit and loss, are added to the fair value on
initial recognition. Financial assets are classified at the initial recognition as financial assets measured
at fair value or as financial assets measured at amortised cost.
II. Subsequent measurement
Financial assets are subsequently classified as measured at
a) amortised cost;
b) fair value through profit and loss (FVTPL);
c) fair value through other comprehensive income (FVOCI).
Financial assets are not reclassified subsequent to their recognition, except if and in the period the
Group changes its business model for managing financial assets.
a) Measured at amortised cost
Financial assets that are held within a business model whose objective is to hold financial assets in order
to collect contractual cash flows that are solely payments of principal and interest, are subsequently
measured at amortised cost using the effective interest rate ('EIR') method less impairment, if any. The
amortisation of EIR and loss arising from impairment, if any is recognised in the Statement of Profit
and Loss.
Investments in subsidiaries
The Holding Company has elected to recognise its investments in subsidiary companies at cost in
accordance with the option available in Ind AS 27, Separate Financial Statements.
b) Measured at fair value through other comprehensive income
Financial assets that are held within a business model whose objective is achieved by both, selling
financial assets and collecting contractual cash flows that are solely payments of principal and
interest, are subsequently measured at fair value through other comprehensive income. Fair value
movements are recognized in the other comprehensive income (OCI). Interest income measured using
the EIR method and impairment losses, if any are recognised in the Statement of Profit and Loss. On
derecognition, cumulative gain or loss previously recognised in OCI is reclassified from the equity to
'other income' in the Statement of Profit and Loss.
For equity instruments, the Group may make an irrevocable election (on initial recognition) to present
in other comprehensive income subsequent changes in the fair value. The Group makes such election
on an instrument-by-instrument basis.
If the Group decides to classify an equity instrument as at FVOCI, then all fair value changes on the
instrument, excluding dividends, are recognised in the Other Comprehensive Income (OCI). There is
no recycling of the amounts from OCI to statement of Profit and Loss, even on sale of investment.
However, the Group may transfer the cumulative gain or loss within equity.
Equity instruments included within the FVTPL category are measured at fair value with all changes
recognised in the Statement of Profit & Loss.
c) Measured at fair value through profit or loss
A financial asset not classified as either amortised cost or FVOCI, is classified as FVTPL. Such financial
assets are measured at fair value with all changes in fair value, including interest income and dividend
income if any, recognised as 'other income' in the Statement of Profit and Loss.
III. Derecognition
The Group derecognises a financial asset when the contractual rights to the cash flows from the
financial asset expire, or it transfers the contractual rights to receive the cash flows from the asset and
the transfer qualifies for derecognition under Ind AS 109.
IV. Impairment of Financial Assets
In accordance with Ind AS 109, the Group applies Expected Credit Loss (ECL) model for measurement
and recognition of impairment loss on the financial assets measured at amortised cost and debt
instrument measured at FVOCI.
Loss allowance on receivable from customer are measured following the 'simplified approach' at an
amount equal to life time ECL at each reporting date. In respect of other financial assets, the loss
allowance is measured at 12 months ECL only if there is no significant deterioration in the credit risk
since initial recognition of the asset or asset is determined to have a low credit risk at the reporting
date.
2.17.2. Financial LiabilitiesInitial recognition and measurement
Financial liabilities are recognised when the Group becomes a party to the contractual provisions of
the instrument.
All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and
payables, net of directly attributable transaction costs. For trade and other payables maturing within
one year from the Balance Sheet date, the carrying amounts approximate fair value due to the short
maturity of these instruments.
Subsequent measurement
Financial liabilities are subsequently measured at amortised cost using the EIR method. Financial
liabilities carried at fair value through profit or loss are measured at fair value with all changes in fair
value recognised in the Statement of Profit and Loss;
Derecognition
A financial liability is derecognised when the obligation specified in the contract is discharged,
cancelled or expires;
2.17.3. Financial guarantees
Financial guarantee contracts issued by the Group are those contracts that require a payment to be
made to reimburse the holder for a loss it incurs because the specified debtor fails to make a payment
when due in accordance with the terms of the debt instrument.
Financial guarantee contracts are recognised initially as a liability at fair value, adjusted for transaction
costs that are directly attributable to the issuance of the guarantee.
Subsequently, the liability is measured at the higher of the amount of loss allowance determined as
per impairment requirements of Ind AS 109 and the fair value initially recognised less cumulative
amortisation;
2.17.4. Derivative financial instruments:
The Group uses derivative financial instruments to manage the exposure on account of fluctuation in
interest rate and foreign exchange rates. Such derivative financial instruments are initially recognised
at fair value on the date on which a derivative contract is entered into and are subsequently measured
at fair value with the changes being recognised in the Statement of Profit and Loss. Derivatives are
carried as financial assets when the fair value is positive and as financial liabilities when the fair value
is negative.
2.17.5. Embedded derivatives:
If the hybrid contract contains a host that is a financial asset within the scope of Ind AS 109, the
classification requirements contained in Ind AS 109 are applied to the entire hybrid contract.
Derivatives embedded in all other host contracts, including financial liabilities are accounted for as
separate derivatives and recorded at fair value, if their economic characteristics and risks are not
closely related to those of the host contracts and the host contracts are not held for trading or
designated at FVTPL.
These embedded derivatives are measured at fair value with changes in fair value recognised in
Statement of Profit and Loss, unless designated as effective hedging instruments.
Reassessment only occurs if there is either a change in the terms of the contract that significantly
modifies the cash flows.
2.17.6. Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the Balance Sheet,
if there is a currently enforceable legal right to offset the recognised amounts and there is an intention
to settle on a net basis, or to realise the assets and settle the liabilities simultaneously;
2.18. Taxes on Income2.18.1. Current Tax
Income-tax Assets and liabilities are measured at the amount expected to be recovered from or paid
to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are
enacted or substantively enacted, by the end of reporting period;
Current Tax items are recognised in correlation to the underlying transaction either in the Statement
of Profit and Loss, other comprehensive income or directly in equity.
2.18.2. Deferred tax
Deferred tax is provided using the Balance Sheet method on temporary differences between the
tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the
reporting date;
Deferred tax liabilities are recognised for all taxable temporary differences;
Deferred tax assets are recognised for all deductible temporary differences, the carry forward of
unused tax credits and any unused tax losses. Deferred tax assets are recognised to the extent that
it is probable that taxable profit will be available against which the deductible temporary differences,
and the carry forward of unused tax credits and unused tax losses can be utilized;
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the
extent that it is no longer probable that sufficient taxable profit will be available to allow all or part
of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each
reporting date and are recognised to the extent that it has become probable that future taxable profits
will allow the deferred tax asset to be recovered;
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year
when the asset is realised or the liability is settled, based on tax rates and tax laws that have been
enacted or substantively enacted at the reporting date;
Deferred Tax items are recognised in correlation to the underlying transaction either in the Statement
of Profit and Loss, other comprehensive income or directly in equity;
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off
current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity
and the same taxation authority.
2.19. Segment reporting
2.19.1. The Group identifies operating segments based on the dominant source, nature of risks and returns
and the internal organisation. The operating segments are the segments for which separate financial
information is available and for which operating profit/loss amounts are evaluated regularly by the
Managing Director (who is the Group chief operating decision maker) in deciding how to allocate
resources and in assessing performance;
2.19.2. The accounting policies adopted for segment reporting are in conformity with the accounting policies
of the Group. Segment revenue, segment expenses, segment assets and segment liabilities have been
identified to segments on the basis of their relationship to the operating activities of the segment.
Inter segment revenue is accounted on the basis of transactions which are primarily determined based
on market / Fair value factors. Revenue, expenses, assets and liabilities which relate to the Group as a
whole and are not allocable to segments on a reasonable basis have been included under 'unallocated
revenue / expenses / assets / liabilities.
2.20. Earnings per share
Basic earnings per share are calculated by dividing the profit or loss for the period attributable to equity
shareholders by the weighted average number of equity shares outstanding during the period;
For the purpose of calculating diluted earnings per share, the profit or loss for the period attributable to
equity shareholders and the weighted average number of shares outstanding during the period are adjusted
for the effect of all dilutive potential equity shares.
2.21. Cash and Cash equivalents
Cash and cash equivalents in the Balance Sheet include cash at bank, cash, cheque, draft on hand and demand
deposits with an original maturity of less than three months, which are subject to an insignificant risk of
changes in value;
For the purpose of Statement of Cash Flows, Cash and cash equivalents include cash at bank, cash, cheque
and draft on hand net off of outstanding bank overdrafts as they are considered an integral part of the Group
cash management. The Group considers all highly liquid investments with a remaining maturity at the date
of purchase of three months or less and that are readily convertible to known amounts of cash to be cash
equivalents.
2.22 Investments in subsidiaries
The Holding Company has elected to recognise its investments in subsidiary companies at cost in accordance
with the option available in Ind AS 27, Separate Financial Statements
2.22. Cash Flows
Cash flows are reported using the indirect method, where by net profit before tax is adjusted for the effects
of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or
payments and item of income or expenses associated with investing or financing cash flows. The cash flows
from operating, investing and financing activities are segregated.
2.23. Dividend
Final dividend on shares is recorded as a liability on the date of approval by the shareholders and interim
dividends are recorded as a liability on the date of declaration by the Group Board of Directors.
3. Recent Pronouncements:
Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as issued from time to time. In May 2025, MCA notified
amendments to Ind AS 21 - The Effects of Changes in Foreign Exchange Rates, applicable w.e.f. April 1, 2025.
The Group has reviewed the amendment and based on its evaluation has determined that it does not have
any significant impact in its financial statements. In August 2025, MCA notified the following amendments to:
Ind AS 1, Presentation of Financial Statements, applicable w.e.f April 1, 2025 - The amendment relates to
classification of liabilities as current or non -current and non-current liabilities with covenants. In the context
of classifying a liability as current, it removes the requirement of existence of a right to defer settlement
for at least 12 months after the reporting date, and instead requires that the said right should exist on the
reporting date and have substance. The amendment also introduces guidance on classification of liabilities
with covenants. The Group has no impact of these amendments in its classification criteria of current and
non-current liabilities.
Ind AS 7, Statement of Cash Flows and Ind AS 107, Financial Instruments - Disclosures, applicable w.e.f April
1, 2025 - The amendment in Ind AS 7 requires to inform users of financial statements of the existence of
supplier finance arrangements and explain the nature of the arrangements, the carrying amount of liabilities
and the range of payment due dates. Ind AS 107 has been amended to add supplier finance arrangements as
a factor that may cause concentration of liquidity risk. The Group has reviewed the amendment and based on
its evaluation has determined that it does not have any impact in its financial statements.
Ind AS 12, International Tax Reform - Pillar Two Model Rules applicable immediately - The amendments
provide a temporary mandatory relief from deferred tax accounting for top-up tax and disclose that they
have applied the relief. This relief is immediate and applies retrospectively. The Group has reviewed the
amendment and based on its evaluation has determined that it does not have any impact in its financial
statements.
18.1 There are no unbilled receivables as at 31st March, 2026 and 31st March, 2025
18.2 The credit period for trade receivable for textile related is 21 days and for garment related ranges from 60 days
to 120 days;
18.3 Company is in the process of reconciling balances of some parties. The Company believes that on completion
of the said process, there would be no material adjustments necessary in the accounts.
18.4 Before accepting any new customer, the Company has appropriate levels of control procedures which ensure
the potential customer's credit quality. Credit limits scoring attributed to customers are reviewed periodically
by the Management;
18.5 Trade receivables hypothecated as security for bank borrowings - Refer note 26 and 32
the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after
distribution of all preferential amounts. The distribution will be in proportion to the number of equity
shares held by the shareholders.
ii. The Company declares and pays dividend in Indian Rupees. The final dividend, if any, proposed by the
Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting,
except in case of interim dividend.
25.1 Nature and Purpose of reservesi Securities premium reserve
Securities premium reserve is used to record the premium on issue of shares. These reserve is utilised in
accordance with the provisions of the Act;
ii General Reserve
The general reserve represents amounts appropriated out of retained earnings and are available for
distribution to shareholders.
iii Retained Earnings
Retained earnings are the profits that the group has earned till date, less any transfers to general reserve,
dividends or other distributionspaid to shareholders. Retained earnings includes re-measurement loss /
(gain) on defined benefit plans, net of taxes that will not be reclassified to Statement of Profit and Loss.
Retained earnings is a free reserve available to the Company.
25.2Dividend on equity shares :
Dividend paid during the year ended 31st March, 2026 amounting to ' 585.20 Lacs (' 1.75 per equity share)
towards final dividend for the year ended 31st March, 2025 as disclosed above.
The Board of Directors of the Company in their meeting on 28th May, 2026 recommended final Dividend of
' 2.5 per equity share for the year ended 31st March, 2026. This payment is subject to the approval of
shareholders in the Annual General Meeting of the Company and if approved would result in net cash outflow
of ' 836 lakhs
32.1 Cash Credit and Overdraft Facilities are secured as under :
i. Bank of India - NIL (31st March, 2025'4.91 lakhs)
Bank of Baroda - NIL (31st March, 2025 : 435.89 lakhs)
Secured against
a. First pari passu charge on entire Current Assets, both present and future, of the Company.
b. Second pari passu charge on Land and Building and Plant and Machinery on Company's Assets at
Dhamini and Kharsundi.
c. Personal guarantee of two promoter directors of the Company.
a. Primary secured by the way of pledge of Stock as per the warehouse receipt from the borrower.
b. Personal guarantee of two promoter directors of the Company.
ii. Exclusive charge by way of Hypothecation of Machinery purchased by the Company.
Registered Mortgage of 1st Floor, Ruby House, Near Plaza Cinema, J. K.
Sawant Marg, Dadar (West), Mumbai 400028 owned by the Company
Personal guarantee of two promoter directors of the Company.”
34.1 Trade payables are non - interest bearing and are normally settled within 45 - 60 days.
34.2Company is in the process of reconciling balances of some parties. The Company believes that on completion
of the said process, there would be no material adjustments necessary in the accounts.
34.3Micro and Small enterprises under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED
Act) have been determined based on the information available with the Company and the required disclosure
are given below:
A Post Employment Benefit Plans:
Defined Contribution Scheme
The company makes contributions towards provident fund to define contribution retirement benefit plan for
qualifying employees. The Provident fund contributions are made to Government administered employees'
provident fund. Both the employees and the company make monthly contributions to the provident fund plan
equal to a specified percentage of the covered employees salary.
The company has recognised '150.20 lakhs (31st March,2025'150.05 lakhs) for Provident fund contributions
in the statement of Profit and Loss.
Defined Benefit Plans
The Company has the following Defined Benefit Plans
Gratuity:
The company makes annual contribution to Ruby Mills Limited Employees' Gratuity Fund managed by HDFC
Standard Life Insurance Limited and Bajaj Allianz; a funded defined benefit plan for the qualifying employees.
The scheme provides for Payment to vested employees as under:
i. On normal retirement / early retirement /withdrawals/ resignation : As per the provisions of payment of
Gratuity Act, 1972.
ii. On death in service : As per provisions of Payment of Gratuity Act, 1972.
Leave Salary
The Leave Salary cover the Company's liability for casual and earned leave.Entire amount of the provision is
presented as current, since the Company does not have an unconditional right to defer settlement for any of
these obligations. However, based on past experience, the Company does not expect all employees to take the
full amount of accrued leave or require payment within the next 12 months. The following amounts reflect leave
that is not expected to be taken or paid within the next 12 months.
* This aforesaid amount does not includes amounts in respect of gratuity and leave entitlement as the same is
not determinable.
D Shri Bharat M. Shah and Shri Viraj M. Shah / Shri Purav Shah, (Directors) have given Personal guarantees for
loans availed by the Company. Refer note no 26 and 32.
E - The transactions with related parties are made in the normal course of business and on terms equivalent
to those that prevail in arm's length transactions.
- Outstanding balances at the year-end are unsecured and settlement occurs In cash.
- There have been no guarantees provided or received for any related party receivables or payables
- The Company has not recorded any impairment of receivables relating to amounts owed by related parties.
- Dividend paid to Directors includes their respective HUFs for the FY 2025-26 and FY 2024-25.
49 Leases
A Leases as lessee51 Financial instruments
A Calculation of fair values
The fair values of the financial assets and liabilities are defined as 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. The following methods and assumptions were used to estimate the fair values of financial instruments:
i The fair value of the long-term borrowings carrying floating-rate of interest is not impacted due to interest
rate changes and will not be significantly different from their carrying amounts as there is no significant
change in the under-lying credit risk of the Company (since the date of inception of the loans).
ii Cash and cash equivalents, trade receivables, investments in term deposits,investments in mutual funds,
other financial assets, trade payables, and other financial liabilities have fair values that approximate to
their carrying amounts due to their short-term nature.
The fair value of financial instruments as referred to in note (B) above have been classified into three
categories depending on the inputs used in the valuation technique. The hierarchy gives the highest priority to
quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and lowest priority to
unobservable inputs (Level 3 measurements).
The categories used are as follows:
i Level 1: Quoted prices for identical instruments in an active market;
ii Level 2: Directly or indirectly observable market inputs, other than Level 1 inputs; and
iii Level 3: Inputs which are not based on observable market data.
iv The following table presents the changes in level 3 items for the periods ended 31st March, 2026:
During the reporting period ending 31st March, 2026 there was no transfer between level 1 and level 2 fair
value measurement.
Key Inputs for Level 1 and 2 Fair valuation Technique:
Mutual Funds : Based on Net Asset Value of the Scheme (Level 2)
Debentures : Based on Market Value of Debentures (Level 1)
C Financial risk management
Risk management framework
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 analyse the risks faced by the
Company, to set appropriate risk limits and controls and to monitor risks. Risk management policies and
systems are reviewed regularly to reflect changes in market conditions and the Company's activities.
The key risks and mitigating actions are also placed before the Audit Committee of the Company.
The Company has exposure to the following risks arising from financial instruments:
a. Credit risk;
b. Liquidity risk; and
c. Market risk;
a. Credit risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial
instrument fails to meet its contractual obligations, and arises principally from the Company's trade and
other receivables, cash and cash equivalents and other bank balances. The maximum exposure to credit
risk in case of all the financial instruments covered below is restricted to their respective carrying amount.
i Trade and other receivables
Customer credit is managed by each business unit subject to the Company's established policies,
procedures and control relating to customer credit risk management. Trade receivables are non¬
interest bearing and are generally on 21 days credit term for Textile division and for Garment division
its ranges from 60 to 120 days credit term. Credit limits are established for all customers based on
internal rating criteria. Outstanding customer receivables are regularly monitored.
An impairment analysis is performed at each reporting date on an individual basis for major clients.
In addition, a large number of minor receivables are grouped into homogenous groups and assessed
for impairment collectively. The Company does not hold collateral as security. The Company has
no concentration of credit risk as the customer base is widely distributed both economically and
geographically , except for trade receivables for real estate and related activities where 57% revenue
comes from one customer.
The Company measures the expected credit loss of trade receivables based on historical trend,
industry practices and the business environment in which the entity operates. Loss rates are based on
actual credit loss experience and past trends.
ii Other financial assets
The Company maintains exposure in cash and cash equivalents, term deposits with banks, investments,
and due from developer. The Company has diversified portfolio of investment with various number of
counter parties which have secure credit ratings hence the risk is reduced. Individual risk limits are set
for each counter party based on financial position, credit rating and past experience. Credit limits and
concentration of exposures are actively monitored by the Management of the Company. The maximum
exposure to credit risk at the reporting date is the carrying value of each class of financial assets;
b Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated
with its financial liabilities that are settled by delivering cash or another financial asset;
Liquidity risk is managed by Company through effective fund management. The Company's principal
sources of liquidity are cash and cash equivalents, borrowings and the cash flow that is generated from
operations. The Company believes that current cash and cash equivalents, tied up borrowing lines and
cash flow that is generated from operations is sufficient to meet requirements. Accordingly, liquidity risk
is perceived to below;
c Market risk
Market Risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate
risk and price risk.
i Currency risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate
because of changes in foreign exchange rates. The Company's exposure to the risk of changes in
The following table details the Company's sensitivity to 2% increase and decrease in the Rupee
against the relevant foreign currencies is the sensitivity rate used when reporting foreign currency risk
internally to key management personnel and represents management's assessment of the reasonably
possible change in foreign exchange rates. This is mainly attributable to the net exposure outstanding
on receivables or payables in the Company at the end of the reporting period. The sensitivity analysis
includes only outstanding foreign currency denominated monetary items and adjusts their translation
at the period end for a 2% change in foreign currency rate. This analysis assumes that all other variables,
in particular interest rates, remain constant and ignores any impact of forecast sales and purchases.
In cases where the related foreign exchange fluctuation is capitalised to fixed assets or recognised
directly in reserves, the impact indicated below may affect the Company's income statement over the
remaining life of the related fixed assets or the remaining tenure of the borrowing respectively.
ii Interest rate risk
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 relates primarily to the Company's borrowings obligations with floating interest rates.
The Company's approach to managing interest rate risk is to have a judicious mix of borrowed funds
with fixed and floating interest rate obligation.
Moreover, the short-term borrowings of the Company do not have a significant fair value or cash flow
interest rate risk due to their short tenure.
The Company is also exposed to interest rate risk on its financial assets that includes fixed deposits,
since the same are generally for short duration, the Company believes it has manageable risk and
achieving satisfactory returns. The Company also has long - term fixed interest bearing assets.
However the Company has in place an effective system to manage risk and maximise return
A reasonably possible change of 2 % in interest rates at the reporting date would have increased (decreased)
profit or loss by the amounts shown below. This analysis assumes that all other variables remain constant.
In cases where the related interest rate risk is capitalised to fixed assets, the impact indicated below
may affect the Company's income statement over the remaining life of the related fixed assets. The said
calculation is done excluding loans which are taken and utilised for development of property and charged
to due from developers which will never impact the income statement of the Company.
52 Capital Management:
The Company's objective is to maximize the shareholders' value by maintaining an optimum capital structure.
Management monitors the return on capital as well as the debt equity ratio and makes necessary adjustments
in the capital structure for the development of the business.
For the purpose of computing debt to equity ratio, equity includes Equity share capital and Other equity and
Debt includes Long term borrowings, short term borrowings and current maturities of long term borrowings.
53 Segment information
A Basis for segmentation
Management has identified two reportable business segments, namely:
i Textilesii Real estate and related
Segments have been identified taking into account the nature of activities and its risks and returns.
The Company's Managing Director, the Chief Operating Decision Maker (CODM) for the Company, periodically
reviews the internal management reports and evaluates performance/allocates resources based on the analysis
of various performance indicators relating to the segments referred to above.
The Company sells its products mainly within India where the conditions prevailing are uniform. Since the sales
outside India are below threshold limit, no separate geographical segment disclosure is considered necessary
(Refer Note 55).
All non-current assets in the nature of property, plant and equipment (including capital work in progress) and
intangible assets (including those under development) are domiciled in India.
No single customer contributed 10% or more to the Company's revenue for the year ended 31st March, 2026
and 31st March, 2025 in case of Textile business and one customer has contributed 57 % and 99 % of the
Company's revenue for the year ended 31st March, 2026 and 31st March, 2025 respectively in case of Real
estate business.
v Revenue recognised from Contract liability (Advances from Customers)
The Contract liability outstanding at the beginning of the year has been recognised as revenue during the year
ended 31st March, 2026.
vi Trade receivables are non-interest bearing and are generally on 21 days credit term for Textile division and for
Garment division its range from 60 to 120 days credit term. In 31st March, 2026 '. 391.18 lakhs (31st March, 2025:
The ICD was extended for business purpose. Currently, it is disclosed in the Balance Sheet under non-current
financial assets, based on the stipulated repayment terms.
58. Other Disclosures :
a. The Company does not have any proceedings which have been initiated or pending against the Company
for holding any Benami property;
b. The Company does not have any transactions with struck off companies;
c. There are no instances of charges or satisfaction thereof which is yet to be registered with ROC beyond
the statutory period, except for the charge created on Buyer Credit availed for the purchase of Winder
Autoconer from Bank of Baroda with the Registrar registered in Mumbai amounting to Eur 1,71,000 and
1,44,000 which had to be satisfied on 11-1-2023 and 18-01-2023 respectively. There is a delay of 1175 Days
and 1168 Days beyond the due date for satisfaction of charge.
d. The Company has neither traded or invested, nor holds Crypto currency or Virtual Currency during
the year;
e. During the year, there were no instances of surrender or disclosure of income 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.
f. The company is not declared as willful defaulter by any bank or financial Institution or other lender.
g. There is no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to
237 of the Companies Act, 2013.
h. The Company is in compliance with the Companies (Restriction on Number of Layers) Rules, 2017, as its
wholly owned subsidiaries is exempted from the calculation of layers
i. The company have not advanced or loaned or invested funds to any other person(s) or entity(ies),
including foreign entities (Intermediaries) with the understanding 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 Beneficiarie
j. 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 on behalf of the Ultimate Beneficiaries
59. Events after reporting period
No adjusting or significant non - adjusting events have occurred between the reporting date 31st March, 2026
and the report release date 28th May, 2026.
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