Provisions are measured at the present value of
management’s best estimate of the expenditure
required to settle the present obligation at the end
of the reporting period. The discount rate used to
determine the present value is a pre tax rate that
reflects current market assessments of the time value
of money and the risks specific to the liability. The
increase in the provision due to the passage of time is
recognised as interest expense in Statement of Profit
and loss.

Contingent Liabilities are disclosed in respect of
possible obligations that arise from past events but
their existence will be confirmed by the occurrence
or non occurrence of one or more uncertain future
events.

Contingent assets disclosed in respect of possible
asset that may arise from past event and whose
existence will be confirmed only by the occurrence
or non occurrence of one or more uncertain future
events.

(m) Revenue recognition
Sale of goods - Wholesale

Sales are recognised when the control of the goods
has been transferred to customer which is generally
on delivery of goods and there is no unfulfilled
obligation that could affect the customer’s acceptance
of the product. Delivery occurs when the products
have been shipped to the specific location, risk of
obsolescence and loss have been transfer to customer
and the Company has objective evidence that all
criteria for the acceptance have been satisfied.

A receivable is recognised when the goods are
delivered as this is the point in time that the
consideration is unconditional because only the
passage of time is required before the payment is due.

Sale of goods - retail

The Company operates a chain of retail stores.
Revenue from the sale of goods is recognised when
the Company sells a product to the customer. Payment
of transaction price is generally due immediately
when the customer purchases the goods and takes
delivery in store.

Service income

Sale of services - Revenue is recognised based on
actual service provided at the end of the reporting
period as proportion of total service to be provided.

Other operating revenue - Export incentives

Export incentives under various schemes of
Government of India are accounted on accrual basis
on the basis of exports made and when there is
reasonable assurance that the Company will comply
with the conditions and incentive will be received.

(n) Employee benefits

(i) Short-term obligations

Liabilities for wages and salaries, including non¬
monetary benefits that are expected to be settled
wholly within 12 months after the end of the

period in which the employees render the related
service are recognised in respect of employees’
services up to the end of the reporting period and
are measured at the amounts expected to be paid
when the liabilities are settled.

(ii) Post-employment obligations
Defined Benefits Plan
Gratuity obligations

The liability or asset recognised in the balance
sheet in respect of defined gratuity plans is the
present value of the defined benefit obligation at
the end of the reporting period less the fair value
of plan assets. The defined benefit obligation
is calculated annually by actuaries using the
projected unit credit method.

The net interest cost is calculated by actuary
applying the discount rate to the net balance of
the defined benefit obligation and the fair value
of plan assets. This cost is included in employee
benefit expense in the Statement of Profit and
Loss.

Remeasurement 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. They are included in retained earnings
in the statement of changes in equity and in the
balance sheet.

Changes in the present value of the defined benefit
obligation resulting from plan amendments
or curtailments as calculated by actuary are
recognised immediately in the Statement of Profit
and Loss as past service cost.

Defined Contribution Plans

The Company pays Provident Fund (PF)
contributions, Employees State Insurance Scheme
(ESIC) etc., to publicly administered funds as per
local regulations. The Company has no further
payment obligations once the contributions have
been paid. The contributions are accounted for as
defined contribution plans and the contributions
are recognised as employee benefits expense when
they are due.

(iii) Other long-term employee benefit obligations

The liabilities for earned leave are not expected to
be settled wholly within 12 months after the end
of the period in which the employees render the
related service. An actuarial valuation is obtained
at the end of reporting period. The present value
of expected future payments to be made in respect
of services provided by employees up to the end
of the reporting period using the projected unit
credit method.

The obligations are presented as current liabilities
in the balance sheet, if the Company does not
have an unconditional right to defer settlement
for at least twelve months after the reporting
period, regardless of when the actual settlement
is expected to occur.

(o) Foreign currency transactions

(i) Functional and presentation currency

The standalone financial statements are presented
in Indian rupee (INR), which is Company’s
functional and presentation currency.

(ii) Transactions and balances

transactions in foreign currencies are recognised
at the prevailing exchange rates on the transaction
dates. Realised gains and losses on settlement of
foreign currency transactions are recognised in
the Statement of Profit and Loss.

Monetary foreign currency assets and liabilities
at the year-end are translated at the year-end
exchange rates and the resultant exchange
differences are recognised in the Statement of
Profit and Loss.

(p) Derivative and hedging activities

Derivatives are only used for economic hedging
purposes and not as speculative investments.
Derivatives are initially recognised at fair value on
the date a derivative contract is entered into and
are subsequently re-measured to their fair value at
the end of each reporting period. the accounting
for subsequent changes in fair value depends on
whether the derivative is designated as a hedging
instrument, and if so, the nature of the item
being hedged and the type of hedge relationship
designated.

the Company designates their derivatives as
hedges of foreign exchange risk associated with
the cash flows of firm commitment transactions
(sales orders/purchase orders) (cash flow hedges).

the Company documents at the inception of the
hedging transaction the economic relationship
between hedging instruments and hedged items
including whether the hedging instrument is
expected to offset changes in cash flows of
hedged items. the Company documents its
risk management objectives and strategy for
undertaking various hedge transactions at the
inception of each hedge relationship.

the full fair value of a hedging derivative is
classified as a non-current asset or liability when
the remaining maturity of the hedged item is more
than 12 months; it is classified as a current asset or
liability when the remaining maturity of the hedged
item is less than or equal to 12 months.

Cash flow hedges that qualify for hedge accounting -

the effective portion of changes in the fair value
of derivatives that are designated and qualify
as cash flow hedges is recognised in the other
comprehensive income in cash flow hedging
reserve within equity, limited to the cumulative
change in fair value of the hedged item on a present
value basis from the inception of the hedge.

When forward contracts are used to hedge forecast
transactions, the Company designates them in
entirety as the hedging instrument. Gains or
losses relating to effective portion of fair value
of forward contracts are recognised in the other
comprehensive income in the cash flow hedging
reserve within other equity.

When the option contracts are used to hedge
forecast transactions, the Company designates
only the intrinsic value of the option contract as
the hedging instrument.

Amounts accumulated in equity are reclassified to
statement of profit and loss in the periods when
the hedged item affects profit or loss i.e. when the
underlying sales or purchase transaction occurs.

The gain or loss relating to the ineffective portion
is recognised immediately in the Statement of
Profit and Loss.

Derivative Contracts other than cash flow hedges:

Derivative contracts which are not designated as
cash flow hedges, are accounted for at fair value
through profit or loss and are included in Statement
of Profit and Loss.

(q) Income tax

The income tax expense for the period is the tax
payable on the current period’s taxable income based
on the applicable income tax rate adjusted by changes
in deferred tax assets and liabilities attributable to
temporary differences and to unused tax losses.

The current income tax charge is calculated on the
basis of the tax laws enacted or substantively enacted
at the end of the reporting period. Management
periodically evaluates positions taken in tax returns
with respect to situations in which applicable tax
regulation is subject to interpretation and considers
whether it is probable that a taxation authority
will accept an uncertain tax treatment. The group
measures its tax balances either based on the most
likely amount or the expected value, depending on
which method provides a better prediction of the
resolution of the uncertainty.

Deferred income tax is provided in full, using the
liability method on temporary differences arising
between the tax bases of assets and liabilities and
their carrying amount in the standalone financial
statements. Deferred income tax is determined
using tax rates (and laws) that have been enacted
or substantially enacted by the end of the reporting
period and are expected to apply when the related
deferred income tax assets is realised or the deferred
income tax liability is settled.

Deferred tax assets are recognised for all deductible
temporary differences and unused tax losses only
if it is probable that future taxable amounts will be
available to utilise those temporary differences and
losses.

Deferred tax assets and liabilities are offset when
there is a legally enforceable right to offset current

tax assets and liabilities and when the deferred tax
balances relate to the same taxation authority. Current
tax assets and tax liabilities are off set where the
company has a legally enforceable right to offset and
intends either to settle on a net basis, or to realize the
asset and settle the liability simultaneously.

Current and deferred tax is recognised in the
Statement of Profit and Loss, except to the extent that
it relates to items recognised in other comprehensive
income or directly in equity. In this case, the tax is
also recognised in other comprehensive income or
directly in equity, respectively.

(r) Earnings Per Share
Basic earnings per share

Basic earnings per share is calculated by dividing:

- the profit attributable to owners of the company

- by the weighted average number of equity shares
outstanding during the financial year, adjusted for
bonus elements in equity shares issued during the
year and excluding treasury shares.

Diluted earnings per share

Diluted earnings per share adjusts the figures used in
the determination of basic earnings per share to take
into account:

- the after income tax effect ofinterest and otherfinancing
costs associatedwith dilutive potential equity shares, and

- the weighted average number of additional equity
shares that would have been outstanding assuming the
conversion of all dilutive potential equity shares.

The calculation of diluted earnings per share does not
assume conversion, exercise, or other issue of potential
ordinary shares that would have an antidilutive effect
on earnings per share.

(s) Segment Reporting:

Operating segments are reported in a manner
consistent with the internal reporting provided to
the chief operating decision maker(CODM).
The CODM, being the Managing Director assesses
the financial performance and position of the
Company and makes strategic decisions.

(t) Impairment of non-financial assets:

Intangible assets that have an indefinite useful
life are not subject to amortisation and are tested
annually for impairment, or more frequently if
events or changes in circumstances indicate that
they might be impaired. Other assets are tested
for impairment whenever events or changes in
circumstances indicate that the carrying amount
may not be recoverable. An impairment loss is
recognised for the amount by which the asset’s
carrying amount exceeds its recoverable amount.
The recoverable amount is the higher of an asset’s
fair value less costs of disposal and value in use.
For the purpose of assessing impairment, assets
are grouped at the lowest levels for which there
are separately identifiable cash inflows which are
largely independent of the cash inflows from other

assets or group of assets (cash-generating units).
Non-financial assets that suffered an impairment are
reviewed for possible reversal of the impairment at
the end of each reporting period.

(u) Government Grants

Grants from the government are recognised at their
fair value where there is reasonable assurance that the
grant will be received and the Company will comply
with all the attached conditions.

(v) Non-current assets held for sale

Non-current assets are classified as held for sale if their
carrying amount will be recovered principally through
a sale transaction rather than through continuing use
and a sale is considered highly probable. They are
measured at the lower of their carrying amount and
fair value less costs to sell, except for assets such
as deferred tax assets, assets arising from employee
benefits, financial assets and contractual rights under
insurance contracts, which are specifically exempt
from this requirement.

An impairment loss is recognised for any initial or
subsequent write-down of the asset to fair value less
costs to sell. A gain is recognised for any subsequent
increases in fair value less costs to sell of an asset,
but not in excess of any cumulative impairment loss
previously recognised. A gain or loss not previously
recognised by the date of the sale of the non-current
asset is recognised at the date of de-recognition.

Non-current assets are not depreciated or amortised
while they are classified as held for sale.

Non-current assets classified as held for sale are
presented separately from the other assets in the
balance sheet.

(w) Recent Accounting Pronouncements:

The Ministry of Corporate Affairs has notified
Companies (Indian Accounting Standards)
Amendment Rules, 2024 to amend the following Ind-
AS which are effective for annual periods beginning
on or after 1st April 2024. the Company has applied
these amendments for the first time in the Standalone
Financial Statements.

i) Ind As 116, Leases

The MCA notified the Companies (Indian Accounting
Standards) Second Amendment Rules, 2024, which
amended Ind AS 116, Leases, with respect to lease
liability in a sale and leaseback transaction.

The amendment specifies the requirements that a
seller-lessee uses in measuring the lease liability
arising in a sale and leaseback transaction, to ensure
the seller-lessee does not recognize any amount of the
gain or loss that relates to the right of use it retains.
the amendment is effective for annual reporting
periods beginning on or after 1st April 2024 and
must be applied retrospectively to sale and leaseback
transactions entered into after the date of initial
application of Ind AS 116.

the application of Ind AS 116 had no impact on the
Company’s Standalone Financial Statements as the
Company has not entered any contracts in the nature
of sale and leaseback covered under Ind AS 116.

ii) ind As 117, insurance Contracts

The Ministry of corporate Affairs (“MCA”)
notified the Ind AS 117, Insurance Contracts, under
the Companies (Indian Accounting Standards)
Amendment Rules, 2024, which is effective from
annual reporting periods beginning on or after 1st
April 2024.

Ind AS 117 Insurance Contracts is a comprehensive
new accounting standard for insurance contracts
covering recognition and measurement, presentation
and disclosure. Ind AS 117 replaces Ind AS 104
Insurance Contracts. Ind AS 117 applies to all types of
insurance contracts, regardless of the type of entities
that issue them as well as to certain guarantees and
financial instruments with discretionary participation
features; a few scope exceptions will apply.

The application of Ind AS 117 had no impact on the
Company’s Standalone Financial Statements as the
Company has not entered any contracts in the nature
of insurance contracts covered under Ind AS 117.

iii) New standards and amendments issued but
not effective

There are no such standards which are notified but
not yet effective.

iv) The other amendments to Ind-AS notified by these
rules are primarily in the nature of clarifications.

3 Critical estimates and judgements

The preparation of standalone financial statements
requires the use of accounting estimates which by
definition will seldom equal the actual results.

This note provides an overview of the areas that involved
a higher degree of judgement or complexity, and items
which are more likely to be materially adjusted due to
estimates and assumptions turning out to be different
than those originally assessed. Detailed information about
each of these estimates and judgements is included in
relevant notes together with information about the basis
of calculation for each affected line item in the standalone
financial statements.

The areas involving critical estimates or judgement are:

- Estimation of Defined benefit obligation (Refer Note 41).

- Recoverability of deferred tax assets (Refer Note 37).

- Allowance for doubtful debts (Refer Note 14 and 45).

- Fair value of Investment properties (Refer Note 5)

- Direct tax litigations (Refer Note 39)

- Determination of lease term (Refer Note 4(c))

- Impairment of non-financial assets (Refer Note 2(u))

- Provision for Inventory Obsolescence (Refer Note 2(h)
and 12)

The total cash outflow for leases for the year ended March 31, 2025 was Rs. 2,123.38 Lakhs (March 31, 2024 Rs. 2,134.44
Lakhs) (including short term and variable lease payments).

(iii) Variable Lease Payments

Certain property leases contain variable payment terms that are linked to sales generated from a store. For individual stores,
up to 100% of lease payments are on the basis of variable payment terms with percentages ranging from 10% to 30%
of sales. Variable payment terms are used for a variety of reasons, including minimising the fixed costs base for newly
established stores. Variable lease payments that depend on sales are recognised in statement of profit or loss in the period
in which the condition that triggers those payments occurs.

A 50% increase in sales across all stores in the company with such variable lease contracts would increase total lease
payments by approximately Rs. 82.36 lakhs (March 31, 2024 Rs. 91.48 lakhs).

(iv) Extension and termination options

Extension and termination options are included in a number of property leases across the Company. These are used to
maximise operational flexibility in terms of managing the assets used in the Company’s operations. The majority of
extension and termination options held are exercisable only by the Company and not by the respective lessor.

(v) Critical judgments in determining the lease term

I n determining the lease term, management considers all facts and circumstances that create an economic incentive to
exercise an option, or not exercise a termination option. Extension options (or periods after termination options) are only
included in the lease term if the lease is reasonably certain to be extended.

For leases of retail stores, the Company considers factors such as historical lease durations, the costs and business disruption
required to replace the leased asset.

41 Post retirement benefit plans
I. Defined Benefit Plan - Gratuity:

The Company provides for gratuity for employees in India 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, subject to a ceiling of R20 Lakhs. the gratuity plan is a funded plan and the Company
makes contributions to recognised funds in India.

As per Actuarial Valuation as on March 31, 2025 and March 31, 2024, amounts recognised in the Standalone financial
statements in respect of Employee Benefits Scheme:

H. Risk Exposure - Asset Volatility

The plan liabilities are calculated using a discount rate set with reference to bond yields; if plan assets underperform this
yield, this will create a deficit. Most of the plan asset investments is in fixed income securities with high grades and in
government securities. These are subject to interest rate risk and the fund manages interest rate risk derivatives to minimize
risk to an acceptable level.

IE Compensated absences

the compensated absences obligations cover the Company’s liability for leave, which is actuarially valued at each year end
by applying the assumptions referred in ‘E’ above.

The amount of the provision of R53.88 lakhs (as at March 31, 2024: R57.29 lakhs) is presented as current, since the
Company does not have an unconditional right to defer settlement of these obligations.

in. Details of Defined Contribution Plan

The Company also has certain defined contribution plans. Contributions are made to provident and other funds in India for
employees as per regulations. The contributions are made to registered provident fund, ESIC, etc. which are administered by
the government. The obligation of the Company is limited to the amount contributed and it has no further contractual nor
any constructive obligation. The expense recognised during the year towards defined contribution plan are R352.20 lakhs
(Previous year R332.49 lakhs) in the Standalone Statement of Profit and Loss.

42 In accordance with Accounting Standard Ind AS 108 ‘Operating Segment‘, segment information has been given in the
consolidated financial statements of Zodiac Clothing Company Limited, and therefore, no separate disclosure on segment
information is given in these standalone financial statements.

44 Fair Value Measurement:

(i) Financial Instrument by category and hierarchy.

The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction
between willing parties, other than in a forced or liquidation sale.

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

1. Fair value of trade receivables, cash and cash equivalents, other bank balances, other current financial assets, current loans, trade payables
and other current financial liabilities approximate their carrying amounts largely due to short term maturities of these instruments.

2. Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and
individual credit worthiness of the counterparty. Based on this evaluation, allowances are taken to account for expected losses of these
receivables. Accordingly, fair value of such instruments is not materially different from their carrying amounts.

The fair values for loans (security deposits) were calculated based on cash flows discounted using a current lending rate. They are classified as
level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including counter party credit risk. the interest
rate on term deposits is at the prevailing market rates. Accordingly, fair value of such instrument is not materially different from their
carrying amounts.

the interest rate on borrowing is at the prevailing market rates. Accordingly, fair value of such instruments is not materially different from
their carrying amounts.

For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation
technique:

Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or
indirectly.

Level 3: techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data.

45 Financial Risk Management:

Financial risk management objectives and policies

The Company’s financial risk management is an integral part of how to plan and execute its business strategies. The
Company’s financial risk management policy is set by the Management.

(A) market risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the
price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates,
foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments.
Market risk is attributable to all market risk sensitive financial instruments including investments, future committed
transactions, foreign currency receivables, payables, borrowings etc.

The Company manages market risk through its finance department (headed by CFO), which evaluates and exercises
independent control over the entire process of market risk management. The finance department recommend risk
management objectives and policies, which are approved by Senior Management and the Audit Committee. The activities
of this department include management of cash resources, implementing hedging strategies for foreign currency exposures
like foreign exchange forward contracts, option contracts, borrowing strategies and ensuring compliance with market risk
limits and policies.

market risk- Interest rate risk.

Interest rate risk is the risk that the fair value of future cash flows of the financial instruments will fluctuate because of
changes in market interest rates. In order to optimize the Company’s position with regards to interest income and interest
expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management
by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio, which could vary on
either side based on current interest rates scenario.

According to the Company interest rate risk exposure is only for floating rate borrowings. For floating rate liabilities, the
analysis is prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding
for the whole year. A 50 basis point increase or decrease is used when reporting interest rate risk internally to key
management personnel and represents management’s assessment of the reasonably possible change in interest rates.

market risk- foreign currency risk

The Company operates internationally and portion of the business is transacted in several currencies and consequently the
Company is exposed to foreign exchange risk through its sales, purchases etc. in various foreign currencies.
The Company evaluates exchange rate exposure arising from foreign currency transactions and the Company follows
established risk management policies, including the use of derivatives like foreign exchange forward contracts and option
contracts to hedge exposure to foreign currency risk.

(ii) The table below summarises the impact of increases/decreases in the net asset value (NAV) / fair market value (FMV) of
Company’s investment in venture capital fund units and statement of profit and loss for the year arising from portfolio of
investment in venture capital funds. The analysis is based on the assumption that the NAV / FMV has increased by 10%
or decreased by 10% with all other variables held constant, and that all the Company’s venture capital funds moved in
same direction.

(B) Credit risk

Credit risk is the risk of incurring a loss that may arise from a borrower or debtor failing to make required payments. Credit
risk arises mainly from trade receivables, cash and cash equivalents, deposit with banks, derivative financial instruments,
investments, loan to employee and security deposits. The Company manages and analyses the credit risk for each of its new
customers before standard payment and delivery terms and conditions are offered.

Credit risk on cash and cash equivalents, deposit with banks, derivative financial instruments and investment is limited as
Company generally deals with banks and financial institutions with high credit ratings assigned by credit rating agencies.
Investments primarily include investment in liquid mutual and accredited venture fund.

While loans and security deposits for rental premises are subjected to the impairment requirement of Ind AS 109, the identified
impairment loss was immaterial.

(i) Credit risk management:

The Company assesses on a forward looking basis the expected credit losses associated with its assets carried at amortised
cost. For trade receivables, the Company applies the simplified approach permitted by Ind AS 109 Financial Instrument,
which requires expected lifetime losses to be recognised from initial recognition of the receivables. When determining
whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating expected
credit losses, the Company considers reasonable and supportable information that is relevant and available without undue cost
or effort. This includes both quantitative and qualitative information and analysis, based on the Company’s historical
experience and informed credit assessment and including forward looking information.

Sale to retail customers are required to be settled in cash or using major cards, mitigating credit risk. There are no
significant concentrations of credit risk, whether through exposure to individual customers, specific industry sectors or
regions.

In respect of sales to export customers, there are no past history of losses, thus the identified expected credit loss was
immaterial.

Credit risk for domestic trade receivable is managed by the Company through credit approvals, establishing credit limits
and periodic monitoring of the creditworthiness of its customers to which the Company grants credit terms in the normal
course of business.

Significant estimates and judgements:

Impairment of financial assets

The impairment provision for financial assets disclosed above are based on assumptions about the risk of default and expected loss
rates. The Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on
the Company’s past history, existing market conditions as well as forward looking estimates at the end of each reporting period.

(C) Liquidity Risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding
through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due
to the dynamic nature of the underlying businesses, Company’s finance department maintains flexibility in funding by maintaining
availability under committed credit lines. Management monitors rolling forecasts of the Company’s liquidity position (comprising
the undrawn borrowing facilities below) and cash and cash equivalents on the basis of expected cash flows.

*The foreign exchange forward contracts and option contract are denominated in the same currency as the firm commitment
(sales order/purchase orders), therefore the hedge ratio is 1:1.

The Company’s hedging policy only allows for effective hedge relationships to be established. Hedge effectiveness is
determined at the inception of the hedge relationship, and through periodic prospective effectiveness assessments to ensure
that an economic relationship exists between the hedged item and hedging instrument. The Company enters into hedge
relationships where the critical terms of hedging instrument match exactly with the terms of the hedged items, and so a
qualitative assessment of effectiveness is performed.

46 Capital Management:

The Company aim to manages its capital efficiently so as to safeguard its ability to continue as a going concern and to optimise
returns to the shareholders.

The capital structure of the Company is based on management’s judgement of the appropriate balance of key elements in order
to meet its strategic and day-to-day needs. We consider the amount of capital in proportion to risk and manage the capital
structure in light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or
adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders
or issue new shares.

The Company’s policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investor,
creditors and market confidence and to sustain future development and growth of its business. The Company will take appropriate
steps in order to maintain, or if necessary adjust, its capital structure.

The Company’s management monitors the return on capital as well as the level of dividends to shareholders.

47 (a) The Code on Social Security, 2020 (‘Code’) relating to employee benefits received Presidential assent in September 2020.
However, the date on which the Code will come into effect has not yet been notified. The Company will assess the impact
of the Code when it comes into effect and will record any related impact in the period the Code becomes effective.

(b) No Significant Subsequent events have been observed which may require an adjustments to the standalone financial
statements..

b) Details of benami property held:

No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

c) Borrowing secured against current assets:

The Company has borrowings from banks on the basis of security of current assets. The quarterly returns or statements of
current assets filed by the Company with banks are in agreement with the books of accounts.

d) Wilful defaulter:

Company has not been declared wilful defaulter by any bank or financial institution or government or any government
authority.

e) Relationship with struck off companies:

the Company has no transactions with the companies struck off under Companies Act, 2013 or Companies Act, 1956.

f) Compliance with number of layers of companies:

the Company has complied with the number of layers prescribed under the Companies Act, 2013.

g) Compliance with approved scheme(s) of arrangements:

the Company has not entered into any scheme of arrangement which has an accounting impact on current or previous
financial year.

h) Utilisation of borrowed funds and share premium:

the Company has 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:

(i) . 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

(ii) . provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

the Company has 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:

(i) . 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

(ii) . provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

i) Undisclosed income:

there is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the
Income tax Act, 1961, that has not been recorded in the books of account.

j) Details of crypto currency or virtual currency:

the Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

k) Valuation of PPE, intangible asset and investment property:

the Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both
during the current or previous year.

l) Registration of charges or satisfaction with Registrar of Companies:

there are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond the statutory period.

m) Utilisation of borrowings availed from banks and financial institutions:

The borrowings obtained by the Company from banks and financial institutions have been applied for the purposes for
which such loans were taken.

o) The Company’s international transactions and domestic transactions with related parties are at arm’s length as per the
independent accountants report for the year ended 31 March 2024. Management believes that the Company’s international
transactions and domestic transactions with related parties for the year ended 31 March 2025 and post 31 March 2025
continue to be at arm’s length and that the transfer pricing legislation will not have any impact on these standalone financial
statements, particularly on amount of tax expense and that of provision for taxation.

49 There are no significant subsequent events that would require adjustments or disclosures in the Standalone Financial
Statements as on balance sheet date.

50 The Company has used an accounting software for maintaining its books of account during the current year which has a
feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions
recorded in the software. Further, we did not come across any instance of audit trail feature being tampered with. Additionally,
the audit trail of prior year has been preserved by the Company as per the statutory requirements for record retention to the
extent it was enabled and recorded in previous year.

The Company has used revenue accounting software for maintaining its books of account which has a feature of recording
audit trail (edit log) facility, except that no audit trail feature was enabled at the database level in respect of an accounting
software to log any direct data changes.

Further, where enabled, audit trail feature has been operated for all relevant transactions recorded in the accounting software.
Also, during the course of our audit, we did not come across any instance of audit trail feature being tampered with in respect
of such accounting software. Additionally, the audit trail of prior year has been preserved by the Company as per the statutory
requirements for record retention to the extent it was enabled and recorded in the previous year.

51 These Standalone Financial Statements were authorised for issue by the Directors on May 28, 2025.

As per our report of even date

For M S K A & Associates For and on behalf of Board of Directors

Chartered Accountants Zodiac Clothing Company Limited

Firm Registration Number: 105047W CIN: L17100MH1984PLC033143

S. Y. noorani awais j. noorani

Vice Chairman and Executive Director - Exports

Managing Director DIN: 00951424

DIN: 00068423

Ankush Agrawal

_Partner b. mahabala kumar iyer

M_emb_ership N_o 159694 Chief Financial Officer Company Secretary

Membership No. ACS9600

Mumbai Mumbai

Date: May 28, 2025 Date: May 28, 2025