Q. Provisions, Contingent liabilities, Contingent assets
and Commitments

General

Provisions are recognized when the company has
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. When
the company expects some or all of a provision to
be reimbursed, for example, under an insurance
contract, the reimbursement is recognized as a
separate asset, but only when the reimbursement is
virtually certain. The expense relating to a provision
is presented in the statement of profit and loss net of
any reimbursement.

If the effect of the time value of money is material,
provisions are discounted using a current pre-tax rate
that reflects, when appropriate, the risks specific to
the liability. When discounting is used, the increase in
the provision due to the passage of time is recognized
as a finance cost.

Contingent liability is disclosed in the case of:

1. A present obligation arising from the past
events, when it is not probable that an
outflow of resources will be required to settle
the obligation;

2. A present obligation arising from the past events,
when no reliable estimate is possible;

3. A possible obligation arising from the past
events, unless the probability of outflow of
resources is remote.

Commitments include the amount of purchase
order (net of advances) issued to parties for
completion of assets.

The company provides for the expenses to reclaim
the quarries used for mining. The total estimate
of reclamation expenses is apportioned over the
estimate of mineral reserves and a provision is made
based on the minerals extracted during the year. Mines
reclamation expenses are incurred on an ongoing
basis and until the closure of the mine. The actual
expenses may vary based on the nature of reclamation
and the estimate of reclamation expenditure.

Provisions, contingent liabilities, contingent
assets and commitments are reviewed at each
balance sheet date.

R. Dividend

Provision is made for the amount of any dividend
declared, being appropriately authorized and no
longer at the discretion of the entity, on or before the
end of the reporting period but not distributed at the
end of the reporting period.

The Company recognizes a liability to make cash
distributions to equity holders of the Company when
the distribution is authorized, and the distribution is
no longer at the discretion of the Company. Final
dividends on shares are 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 Company's Board of Directors.
The interim dividends declared during the year are
approved by the Board of Directors.

S. Earnings per share

Basic earnings per share are calculated by dividing
the net profit for the period attributable to equity
shareholders by the weighted average number of
equity shares outstanding during the period. Earnings
considered in ascertaining the company's earnings
per share is the net profit for the period after deducting
preference dividends and any attributable tax thereto
for the period. The weighted average number of
equity shares outstanding during the period and for
all periods presented is adjusted for events, such as
bonus shares, other than the conversion of potential
equity shares that have changed the number of
equity shares outstanding, without a corresponding
change in resources.

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 is
adjusted for the effects of all dilutive potential equity
shares. Dilutive potential equity shares are deemed
converted as of the beginning of the period, unless
they have been issued at a later date. The diluted
potential equity shares have been arrived at, assuming
that the proceeds receivable was based on shares
having been issued at the average market value of the
outstanding shares. In computing dilutive earnings
per share, only potential equity shares that are dilutive
and that would, if issued, either reduce future earnings
per share or increase loss per share, are included.

T. Use of estimates and judgements

The presentation of the financial statements is
in conformity with the Ind AS which requires the
management to make estimates, judgments and
assumptions that affect the reported amounts of
assets and liabilities, revenues and expenses and
disclosure of contingent liabilities. Such estimates and
assumptions are based on management's evaluation
of relevant facts and circumstances as on the date of
financial statements. The actual outcome may differ
from these estimates.

Estimates and underlying assumptions are
reviewed on an ongoing basis. Revisions to the
accounting estimates are recognized in the period
in which the estimates are revised and in any future
periods affected.

Information about assumptions and estimation
uncertainties that have a significant risk of resulting
in a material adjustment within the next financial year
are included in the following notes:

Note 33 - Current tax

Note 38 - Measurement of defined benefit obligations
Note 41 - Fair valuation of unlisted securities

U. Statement of cash flows

Cash flow are reported using the indirect method,
whereby net profit before tax is adjusted for the effects
of transactions of a non-cash nature, any deferrals of
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 finance activities of the
company are segregated.

V. Current and non-current classification

The company presents assets and liabilities in
the balance sheet based on current/ non-current
classification. An asset is treated as current when it is:

i. Expected to be realized or intended to be sold
or consumed in normal operating cycle;

ii. Held primarily for the purpose of trading;

iii. Expected to be realized within twelve months
after the reporting period, or

iv. Cash or cash equivalent unless restricted from
being exchanged or used to settle a liability for
at least twelve months after the reporting period

All other assets are classified as non-current.

A liability is current when:

i. It is expected to be settled in normal
operating cycle;

ii. It is held primarily for the purpose of trading;

iii. It is due to be settled within twelve months after
the reporting period, or

iv. There is no unconditional right to defer the
settlement of the liability for at least twelve
months after the reporting period

v. Some current liabilities, such as trade payables
and some accruals for employee and other
operating costs, are part of the working capital
used in the entity's normal operating cycle. An
entity classifies such operating items as current
liabilities even if they are due to be settled more
than twelve months after the reporting period.

All other liabilities are classified as non-current.

Deferred tax assets and liabilities are classified as non¬
current assets and liabilities.

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.

W. Foreign currency translation

Items included in the financial statements of the
entity are measured using the currency of the
primary economic environment in which the entity
operates ('the functional currency'). The financial
statements are presented in Indian rupee (INR), which
is company's functional and presentation currency.

Transactions and balances

Transactions in foreign currencies are initially
recorded by the company's entities at their respective
functional currency spot rates at the date the
transaction first qualifies for recognition.

Monetary assets and liabilities denominated in foreign
currencies are translated at the functional currency
spot rates of exchange at the reporting date.

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. Non-monetary items measured at fair
value in a foreign currency are translated using the
exchange rates at the date when the fair value is
determined. The gain or loss arising on translation of
non-monetary items measured at fair value is treated
in line with the recognition of the gain or loss on
the change in fair value of the item (i.e., translation
differences on items whose fair value gain or loss is
recognized in OCI or profit or loss are also recognized
in OCI or profit or loss, respectively).

X. Fair value measurement

The company measures financial instruments, such
as, derivatives at fair value at each balance sheet date.

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. The fair value measurement is
based on the presumption that the transaction to sell
the asset or transfer the liability takes place either:

i. In the principal market for the asset or liability, or

ii. In the absence of a principal market, in the most
advantageous market for the asset or liability.

The principal or the most advantageous market must
be accessible by the company.

The fair value of an asset or a liability is measured
using the assumptions that market participants would
use when pricing the asset or liability, assuming that
market participants act in their economic best interest.

The company uses valuation techniques that are
appropriate in the circumstances and for which
sufficient data are available to measure fair value,
maximizing the use of relevant observable inputs and
minimizing the use of unobservable inputs.

All assets and liabilities for which fair value is
measured or disclosed in the financial statements are
categorized within the fair value hierarchy, described
as follows, based on the lowest level input that is
significant to the fair value measurement as a whole:

i. Level 1 — Quoted (unadjusted) market prices in
active markets for identical assets or Liabilities.

ii. Level 2 — Valuation techniques for which the
lowest level input that is significant to the fair value
measurement is directly or indirectly observable.

iii. Level 3 — Valuation techniques for which the
lowest level input that is significant to the fair
value measurement is unobservable.

For assets and liabilities that are recognized in the
financial statements on a recurring basis, the company
determines whether transfers have occurred between

levels in the hierarchy by re-assessing categorization
(based on the lowest level input that is significant to
the fair value measurement as a whole) at the end of
each reporting period.

The company's Valuation Committee determines
the policies and procedures for both recurring fair
value measurement, such as derivative instruments
and unquoted financial assets measured at fair value,
and for non-recurring measurement, such as assets
held for distribution in discontinued operations.
The Valuation Committee comprises of the head
of the investment properties segment, heads of the
company's internal mergers and acquisitions team,
the head of the risk management department,
financial controllers and chief finance officer.

External valuers are involved for valuation of
significant assets, such as unquoted financial assets.
Involvement of external valuers is decided upon
annually by the Valuation Committee after discussion
with and approval by the management. Selection
criteria include market knowledge, reputation,
independence and whether professional standards are
maintained. Valuers are normally rotated every three
years. The management decides, after discussions
with the company's external valuers, which valuation
techniques and inputs to use for each case.

At each reporting date, the management analyses the
movements in the values of assets and liabilities which
are required to be remeasured or re-assessed as per
the company's accounting policies. For this analysis, the
management verifies the major inputs applied in the latest
valuation by agreeing the information in the valuation.

The management, in conjunction with the Company's
external valuers, also compares the change in the fair
value of each asset and liability with relevant external
sources to determine whether the change is reasonable.

On an interim basis, the Valuation Committee and
the Company's external valuers present the valuation
results to the Audit Committee and the company's
independent auditors. This includes a discussion of
the major assumptions used in the valuations.

For the purpose of fair value disclosures, the company
has determined classes of assets and liabilities on the
basis of the nature, characteristics and risks of the
asset or liability and the level of the fair value hierarchy
as explained above.

This note summarizes accounting policy for fair
value. Other fair value related disclosures are given in
the relevant notes.

i. Disclosures for valuation methods, significant
estimates and assumptions.

ii. Quantitative disclosures of fair value
measurement hierarchy.

iii. Investment in unquoted equity shares
(discontinued operations).

iv. Financial instruments (including those carried at
amortized cost).

Y. Exceptional items

Certain occasions, the size, type or incidence of an
item of income or expense, pertaining to the ordinary
activities of the company is such that its disclosure
improves the understanding of the performance of
the company, such income or expense is classified as
an exceptional item and accordingly, disclosed in the
notes accompanying to the financial statements.

Z. Rounding off

All amounts disclosed in the financial statements
and notes have been rounded off to the nearest
crores as per the requirements of Schedule III, unless
otherwise stated.

AA. Recent accounting 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. For the year ended
March 31, 2024, MCA has not notified any new
standards or amendments to the existing standards
applicable to the company.

Notes:

Description of nature and purpose of each reserve:

1 Security Premium

The amount received in excess of face value of the equity shares is recognised in equity security premium.

2 Retained Earnings

Retained earnings are the profits/losses that the Company has earned till date less any transfer to other reserves, dividends or
other distributions to shareholders.

3 Other Comprehensive income

a) The fair value change of the equity instruments measured at fair value through other comprehensive income is recognised
in equity instruments through Other Comprehensive income.

b) The remeasurement gain/(loss) on net defined plan is recognised in Other Comprehensive Income net of Tax.

Notes:

1 The company has reviewed all its pending litigations and proceedings and has adequately provided where provisions are
required and disclosed as contingent liabilities where applicable, in its financial statements. The company does not expect the
outcome of these proceedings to have materially adverse effect on its financial position. The company does not expect any
reimbursement in respect of the above contingent liabilities.

2 The company has signed First Loss Default Guarantee in favour of State Bank of India against EDFS facility provided by bank to
our customer. The liability of the company will arise only when customers make default in repayment of EDFS facility provided
by bank. Outstanding as on 31st March, 2025 all customer collectively has outstanding of H 10.26 Cr against EDFS facility.

3 The Income Tax Department ("the Department") conducted a Search activity ("the Search" under Section 132 of the Income Tax
Act) on the Company in July 2022. Subsequently, the Company has provided all support and cooperation and the necessary
documents and data to the Department, as requested by the Department. The Company is examining and reviewing details of
the matter and will take appropriate actions, including addressing regulatory actions, if and when they occur.

4 While the uncertainty exists regarding the outcome of the proceedings by the department, the Company after considering
all available information and facts as of date, has not identified the need for any adjustments to the current or prior period
financial statements.

Note 34

An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur
expenses, including revenues and expenses that relate to transactions with any of the Company's other components and for which
discrete financial information is available. The Company's chief operating decision maker (CODM) is considered to the Company's
Managing Director (MD). The Company is engaged in the business of Production of Yarn and Processing of Fabric which are widely
used in Textile Unit. Information reported to and evaluated regularly by the CODM for the purposes of resource allocation and
assessing performance focuses on the business as a whole and accordingly, in the context of Operating Segment as defined under
the Indian Accounting Standard 108 'Segment Information, there is no separate reportable segment.

Note -36

Due to Micro, Small and Medium Enterprises

Under the Micro Small and Medium Enterprises Development Act, 2006, (MSMED) which came in to force from 02.10.2006,
certain disclosers are required to be made relating to Micro, Small and Medium enterprises. On the basis of the information and
records available with management, outstanding dues to the Micro and Small enterprise as defined in the MSMED Act, 2006 are
disclosed as below

Notes:

The following methods and assumptions were used to estimate the fair values:

1) The carrying amounts of trade receivables, trade payables, cash and cash equivalents, other bank balance, other
current financial liability, loans and other current assets are considered to be the same as their fair values, due to their
short-term nature.

2) The fair values for loans and security deposits were calculated based on cash flows discounted using a current lending rate.

3) The fair values of non-current borrowings are based on discounted cash flows using a current borrowing rate.

III. Measurement of fair values

A. Valuation techniques and significant unobservable inputs

The following tables show the valuation techniques used in measuring Level 2 and Level 3 fair values, as well as the
significant unobservable inputs used.

Note 39

Financial risk management

The company has exposure to the following risks arising from financial instruments:

• Credit risk ;

• Liquidity risk ; and

• Market risk

1. 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 board of directors along with the top management are responsible for developing and monitoring
the Company's risk management policies.

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 and adherence to limits. Risk management policies and systems are
reviewed regularly to reflect changes in market conditions and the Company's activities. The Company, through its training
and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all
employees understand their roles and obligations.

The Company's audit committee oversees how management monitors compliance with the Company's risk management policies
and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company,

2. 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 receivables from customers and investments in debt securities.

The carrying amount of following financial assets represents the maximum credit exposure:

The maximum exposure to credit risk for trade and other receivables are as follows:

A. Trade receivables

The Company has developed guidelines for the management of credit risk from trade receivables. The Company's
exposure to credit risk is influenced mainly by the individual characteristics of each customer The demographics of the
customer, including the default risk of the industry and country in which the customer operates, also has an influence on
credit risk assessment.

Exposures to customers outstanding at the end of each reporting period are reviewed by the Company to determine
incurred and expected credit losses. Historical trends of impairment of trade receivables do not reflect any significant credit
losses Given that the macro economic indicators affecting customers of the Company have not undergone any substantial
change, the Company expects the historical trend of minimal credit losses to continue, Further, management believes that
the unimpaired amounts that are past due by more than 30 days are still collectible in full, based on historical payment
behaviour and extensive analysis of customer credit risk.

Other financial assets

This balance primarily constitute of Bank fixed deposits having maturity of more than 12 months.

Cash and cash equivalents

The Company held cash and cash equivalents with credit worthy banks and financial institutions as at the reporting
dates which has been measured on the 12-month expected loss basis. The credit worthiness of such banks and financial
institutions are evaluated by the management on an ongoing basis and is considered to be good with low credit risk.
Also, no impairment loss has been recorded in respect of fixed deposits that are with recognised commercial banks and
are not past due.

Note 40

Financial instruments - Fair values and risk management
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. The Company's approach to managing liquidity is to ensure, as far as
possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions,
without incurring unacceptable losses or risking damage to the Company's reputation.

The Company has current financial assets which the management believes is sufficient to meet all its liabilities maturing during the
next 12 months.

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and
undiscounted, including contractual interest.

Note 41

Financial instruments - Fair values and risk management
Market risk

Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and equity prices - will affect the
Company's income or the value of its holdings of financial instruments. Market risk is attributable to all market risk sensitive financial
instruments including foreign currency receivables and payables and long term debt. We are exposed to market risk primarily related
to foreign exchange rate risk and the market value of our investments. Thus, our exposure to market risk is a function of investing and
borrowing activities and revenue generating and operating activities in foreign currency. The objective of market risk management is
to avoid excessive exposure in our foreign currency revenues and costs.

A. Currency risk

The functional currency of the Company is Indian Rupee. The Company is exposed to currency risk on account of payables and
receivables in foreign currency. The company has formulated policy to meet the currency risk.

company does not use derivative financial instruments for trading or speculative purposes.

B. Interest rate risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of
changes in fair values of fixed interest bearing investments because of fluctuations in the interest rates. Cash flow interest rate
risk is the risk that the future cash flows of floating interest bearing investments will fluctuate because of fluctuations in the
interest rates. The company adopts a policy to ensure that maximum interest rate exposure is at a fixed rate. This is achieved by
entering into fixed-rate instruments.

Note 43

Capital managemen

For the purpose of the Company's capital management, capital includes issued equity capital and all other equity reserves attributable
to the equity holders of the parent. The primary objective of the Company's capital management is to maximise the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements
of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders,
return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided
by total capital plus net debt. The Company includes within net debt, borrowings, trade and other payables, less cash and cash
equivalents, excluding discontinued operations

Note 46

Additional Regulatory Information pursuant to Clause 6L of General Instructions for preparation of Balance Sheet as given

in Part I of Division II of Schedule III to the Companies Act, 2013, are given hereunder to the extent relevant and other than

those given elsewhere in any other notes to the Financial Statements.

a. The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company
for holding any Benami property.

b. The Company has a Fund-based and Non-fund-based limits of Working Capital from Banks and Financial institutions. For the
said facility, the Company has submitted Stock and debtors statement to the bank on monthly basis as also the Quarterly
Information Statements. The average difference is not material and is less than 1% of amount of stock and debtors, which is on
account of valuation, provisions, etc.

c. The Company has not been declared as a willful defaulter by any lender who has powers to declare a company as a willful
defaulter at any time during the financial year or after the end of reporting period but before the date when the financial
statements are approved.

d. The Company has not entered into any transactions with companies struck off under section 248 of the Companies Act, 2013
or section 560 of Company Act, 1956.

e. The Company has compiled with the number of layers prescribed under clause (87) of section 2 of the Companies Act 2013 read
with Companies (Restrictions on number of Layers) Rules, 2017.

Note 46 (Contd..)

f. The Company has not received any funds 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;

(1) 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

(2) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

g. The Company does not have any transactions which is not recorded in the books of accounts but 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).

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

Note 47

The financial statements are approved by the audit committee and Board of Directors at its meeting held on 21St May, 2025. The said
financial statements are subject to approval of Share Holders in Annual General Meeting.

Note 49

Figures have been presented in 'crore' of rupees with two decimals. Figures less than H 50,000 have been shown at actual in brackets

Note 50 : Events occurring after the reporting period

1. Allotment of Shares in Associate Company

The Company had advanced 6.50 Crores for the proposed acquisition of equity shares in Nandan Industries Private Limited prior
to the balance sheet date. After the reporting date, but before approval of the financial statements, the Company was allotted
5,28,100 equity shares, thereby establishing or increasing its stake in the associate. This transaction is a non-adjusting event
under Ind AS 10.

2. No Other Material Events

Based on management's evaluation, there have been no other material events occurring after the balance sheet date that would
require adjustment to or disclosure in the financial statements for the year ended 31st March, 2025.

Material Accounting Policies 1

The accompanying Notes 2 to 51 are integral part of the Financial Statements.

As per our report of even date

For S V J K and Associates For and on behalf of the Board of Directors of Vishal Fabrics Limited

Chartered Accountants CIN : L17110GJ1985PLC008206

Firm Registration No: 135182W

Reeturaj Verma Brijmohan Chiripal Suketu Shah Dharmesh Dattani

Partner Managing Director Chief Executive Chief Financial

Membership No.: 193591 DIN : 00290426 Officer Officer

UDIN : 25193591BMJGJ09249

Ravindrakumar Bajranglal Bajaj

Place: Ahmedabad Whole-Time Director Place: Ahmedabad

Date: 'May 21,2025 DIN : 08243855 Date: 'May 21,2025