Accounting Policies of Manomay Tex India Ltd. Company

Mar 31, 2025

2. Significant Accounting Policies

2.1 Basis of Preparation

A. Statement of Compliance

The Financial Statements have been Prepared in accordance with the Indian Accounting
Standards(Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015
(as amended)Prescribed under Section 133 of The Companies Act,2013(''Act'')

B. Functional and Presentation Currency

The Financial Statements are presented in Indian Rupees (''INR'') which is also the Company''s
functional currency and all values are rounded to the nearest lakhs, except when otherwise
indicated.

C. Basis of measurement

The Financial Statements are prepared on Accrual basis under the Historical Cost convention
except certain Financial Assets and Liabilities (including Derivatives instruments) that are
measured at fair value.

D. Use of estimates

The preparation of the Financial Statements in conformity with Ind AS requires
Management to make estimates, judgments and assumptions. These estimates, judgments and
assumptions affect the application of accounting policies and the reported amounts of Assets
and Liabilities, the disclosures of contingent Assets and Liabilities at the date of the Financial
Statements and reported amounts of Revenues and Expenses during the period. Application
of accounting policies that require critical accounting estimates involving complex and
subjective judgments and the use of assumptions in these Financial Statements have been
disclosed in Note 2.22

Accounting estimates could change from period to period. Actual results could differ from
those estimates. Appropriate changes in estimates are made as Management becomes
aware of changes in circumstances surrounding the estimates. Changes in estimates are
reflected in the Financial Statements in the period in which changes are made and, if
material, their effects are disclosed in the notes to the Financial Statements.

E. Current versus Non-Current classification

All Assets and Liabilities have been classified as Current or Non-Current. Based on the
nature of Product & Activities of the Company and their realization in Cash and Cash
Equivalent, the Company has determined its operating cycle as 12 months for the purpose of
Current and Non-Current classification of Assets and Liabilities.

Deferred Tax Assets and Deferred Tax Liabilities are classified as Non-Current Assets and
Liabilities.

F. Measurement of Fair Values

A number of the Company''s Accounting Policies and Disclosures require measurement of Fair
Values, for both Financial and Non-Financial Assets and Liabilities.

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:

• In the Principal market for the Asset or Liability, or

• In the absence of a principal market, in the most advantageous market for the Asset or
Liability and the Company has access to the principal or the most advantageous market.

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.

A Fair value measurement of a Non-Financial Asset takes into account a market participant''s
ability to generate economic benefits by using the Asset in its highest and best use or by selling
it to another market participant that would use the Asset in its highest and best use.

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:

Level 1 — Quoted (unadjusted) market prices in active market for identical Assets or Liabilities

Level 2 — Valuation techniques for which the lowest level input that is significant to the Fair
value measurement is Directly or Indirectly observable.

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 ofeach reporting period.

For the purpose of Fair value disclosures, the Company has determined classes of Assets &
Liabilities on the basis of the nature, characteristics and the 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 note.

2.2 Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow
to the Company and the revenue can be reliably measured. Revenue is measured at the Fair
value of the consideration received or receivable. Revenue is reduced for estimated rebates
and other similar allowances.

Sale of Goods

Revenue from the Sale of goods is recognized, when all the significant risks and rewards of
ownership of the goods have passed to the buyer, the Company no longer retains continuing
managerial involvement to the degree usually associated with ownership nor has effective
control over the goods sold, the amount of revenue and costs associated with the transaction
can be measured reliably and no significant uncertainty exists regarding the amount of
consideration that will be derived from the sales of goods. Revenue is disclosed and net of
returns, trade discounts, taxes and amount collected on behalf of third parties.

Other Operating Revenue

a) Export incentives are accounted for in the year of export.

b) Interest on bank deposits is recognized on the effective interest rate method basis taking into
account the amounts invested and the rate of interest applicable.

c) Interest from trade receivables and other financial assets are recognized when it is probable that
the economic benefit will flow to the entity and the amount can be measured reliably.

d) Claim lodged with insurance companies is recognized as income on acceptance by the insurance
Companies.

2.3 Government Grants

Government grants are recognized only when there is reasonable assurance that the grants will
be received and all attached conditions will be complied with.

Government grants related to revenue are recognized on a systematic basis in the statement of
profit and loss over the periods necessary to match them with the related costs which they are
intended to compensate. If the grants are related to subvention a particular expense, it is
deducted form that expense in the year of recognition of government grant.

Government grants related to assets are treated as deferred income and are recognized in the
statement of profit and loss on a systematic and rational basis over the useful life of the related
asset.

2.4 Inventories

Inventories are measured at lower of cost and net realizable value after providing for obsolescence,
wherever considered necessary. Cost of inventories comprises of cost of material, cost of
conversion and other costs, including manufacturing overheads, incurred in bringing them to
their respective present location and condition. Cost of raw material, stores, packing materials
and other products are determined on FIFO / Actual cost basis.

2.5 Property, Plant and Equipment

On transition to Ind-AS, the Company has opted to continue with the carrying value of all of its
property,plant and equipment recognized as at 1st April, 2021, measured as per previous GAAP
and use that carrying value as the deemed cost of the property, plant & equipment.

Freehold Land is carried at historical cost.

All other items of property, plant and equipment are stated at cost less accumulated
depreciation and accumulated impairment losses, if any. Cost includes its purchase price,
including freight, duties and non- refundable purchase taxes, after deducting trade discounts
and rebates. It includes other costs directly attributable to bringing the asset to the location
and condition necessary for it to be capable of operating in the manner intended by
management.

Subsequent expenditures related to an item of property, plant and equipment are added to its
carrying value only when it is probable that the future economic benefits from the asset will
flow to the Company & cost can be reliably measured.

When significant parts of plant and equipment are required to be replaced at intervals, the
company depreciates them separately based on their specific useful lives. Likewise, when a
major inspection is performed, its cost is recognized in the carrying amount of the plant and
equipment as a replacement if the recognition criteria are satisfied. All other repair and
maintenance costs are recognized in Statement of profit and loss as incurred. The present value
of the expected cost for the decommissioning of an asset after its useis included in the cost of
the respective asset if the recognition criteria for a provision are met.

An item of property, plant and equipment and any significant part initially recognized is
derecognized upon disposal or when no future economic benefits are expected from its use or
disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference
between the net disposal proceeds and the carrying amount of the asset) is included in the
income statement when the asset is derecognized.

Depreciation

Depreciation is recognized for property, plant and equipment so as to write-off the cost less
residual values over their estimated useful lives. The estimated useful lives, residual values and
depreciation method are reviewed at the end of each reporting period, with the effect of any
changes in estimate accounted for on a prospective basis taking into account commercial and
technological obsolescence as well as normal wear and tear.

Depreciation on tangible assets is provided on straight line method over the useful lives
prescribed Part C of Schedule II of Companies Act, 2013

Free hold land is not depreciated.

Depreciation on additions to or on disposal of property, plant and equipment is calculated on
pro-rata basis i.e. from (up to) the date on which the Property, Plant and Equipment is available
for use (disposed off).

Derecognition of PPE

An item of property, plant and equipment and any significant part initially recognized is
derecognized upon disposal or when no future economic benefits are expected from its use or
disposal. Any gain or loss arising on de-recognition of the asset (calculated as the difference
between the net disposal proceeds and the carrying amount of the property, plant and
equipment) is included in the statement of profit & loss when the property, plant and
equipment is derecognized.

2.6 Capital Work-in-Progress

The cost of self-constructed assets includes the cost of materials & direct labor, any other
costs directly attributable to bringing the assets to the location and condition necessary for it
to be capable of operating in the manner intended by management and borrowing costs.

Expenses directly attributable to construction of property, plant and equipment incurred till
they are ready for their intended use are identified and allocated on a systematic basis on the
cost of related assets.

2.7 Intangible Assets and Intangible Assets under Development

On transition to Ind AS, the Company has opted to continue with the carrying value of all its
intangible assets recognized as at 1^st April, 2021 measured as per previous GAAP and used that
carrying value as the deemed cost of the intangible assets.

Intangible assets are stated at acquisition cost, net of accumulated amortization and accumulated
impairment losses, if any. Gains or losses arising from the retirement or disposal of an intangible
asset are determined as the difference between the disposal proceeds and the carrying amount
of the asset and are recognized as income or expense in the Statement of Profit and Loss.

Intangible assets with finite lives are amortized over the useful economic life and assessed for
impairment whenever there is an indication that the intangible asset may be impaired. The
amortization expense on intangible assets with finite lives is recognized in the statement of
profit and loss unless such expenditure forms part of carrying value of another asset.

Intangible Assets with finite useful lives are amortized on a straight line basis over the following
period:

Transmission Line 10 Years

Computer software 3 years

The assets'' residual values and useful lives are reviewed, and adjusted if appropriate, at the
end of each reporting period.

Research and Development Costs

Research costs are expensed as incurred. Development costs relating to new projects are
recognized as intangible assets and are carried forward under Intangible Assets under
Development until the completion of the project when they are capitalized as Intangible assets,
if the following conditions are satisfied:

¦ It is technically feasible to complete the Asset so that it will be available for use;

¦ Management intends to complete the Asset and use or sell it;

¦ There is an ability to use or sell the Asset;

¦ It can be demonstrated how the Asset will generate probable future economic benefits;

¦ Adequate technical, financial and other resources to complete the development and to
use or sell the Asset are available; and

¦ The expenditure attributable to the Asset during its development can be reliably measured.

1.1 Investment Properties

Investment Property is property held either to earn rental income or capital appreciation or for
both, but not for sale in the ordinary course of business, use in production or supply of goods
or services or for administration purposes.

Investment properties are measured initially at cost, including transaction costs. Subsequent
to initial recognition, investment properties are stated at cost less accumulated depreciation
and accumulated impairment loss, if any.

Depreciation is provided over the estimated useful life of the investment property lives which
may be different from the useful life prescribed in Schedule II to the Companies Act, 2013.

Investment properties are derecognized either when they have been disposed of or when they are
permanently withdrawn from use and no future economic benefit is expected from their disposal.
The difference between the net disposal proceeds and the carrying amount of the asset is
recognized in profit or loss in the period of de-recognition.

1.2 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. Financial Assets and Financial
Liabilities are recognized when the Company becomes a party to the contractual provisions of
the instruments.

Financial Assets and Financial Liabilities are initially measured at Fair value. Transaction costs that
are directly attributable to the acquisition or issue of Financial Assets and Financial Liabilities
(other than Financial Assets and Financial Liabilities at fair value through profit or loss) are added
to or deducted from the fair value of the Financial Assets or Financial Liabilities, as appropriate,
on initial recognition. Transaction costs directly attributable to the acquisition of Financial
Assets or Financial Liabilities at Fair value through Profit or Loss are recognized immediately in
Statement of Profit and Loss.

a) Financial Assets

All regular way Purchases or Sales of Financial Assets are recognized and derecognized on a
trade date basis. Regular way Purchases or Sales are Purchases or Sales of Financial Assets that
require delivery of Assets within the time frame established by regulation or convention in the
market place.

All recognized Financial Assets are subsequently measured in their entirety at either amortized
cost or Fair value, depending on the classification of the Financial Assets.

i) Financial Assets at Amortized Cost

A Financial Asset is subsequently measured at amortized cost if it is held within a business
model whose objective is to hold the asset in order to collect contractual cash flows and the
contractual terms of the Financial Asset give rise on specified dates to cash flows that are
solely payments of principal and interest on the principal amount outstanding.

ii) Financial Assets at Fair value through other Comprehensive Income

A Financial Asset is subsequently measured at fair value through other Comprehensive Income
if it is held within a business model whose objective is achieved by both collecting
Contractual Cash Flows and selling Financial Assets and the Contractual Terms of the Financial
Asset give rise on specified dates to Cash Flows that are solely payments of principal and
interest on the principal amount outstanding.

On initial recognition, the Company makes an irrevocable election on an instrument-by¬
instrument basis to present the subsequent changes in fair value in other Comprehensive
Income pertaining to investments in equity instruments, other than equity investment
which are held for trading. Subsequently, they are measured at fair value with gains and
losses arising from changes in fair value, excluding dividends, recognized in other
Comprehensive Income and accumulated in the ''Reserve for equity instruments through
other Comprehensive Income''. The cumulative gain or loss is not reclassified to profit or loss
on disposal of the investments. There is no recycling of the amounts from OCI to P&L, even
on Sale of Investment. However, the Company may transfer the cumulative Gain or Loss
within Equity.

iii) Financial Assets at fair value through Profit or Loss (FVTPL)

Investment in Equity Instruments are classified as at FVTPL, unless the Company irrevocably
elects on initial recognition to present subsequent changes in fair value in other

Comprehensive Income for Investment in Equity Instruments which are not held for
Trading.

Other Financial Assets are measured at fair value through Profit or Loss unless it is measured
at amortized cost or at fair value through other Comprehensive Income on initial
recognition. The transaction costs directly attributable to the acquisition of Financial Assets
and Liabilities at fair value through Profit or Loss are immediately recognized in Profit or Loss.

De-recognition

The Company derecognizes a Financial Asset when the contractual rights to receive the
Cash Flows from the Financial Asset expire or it transfers the Financial Asset and the transfer
qualifies for Derecognition under Ind-AS 109.

Impairment of Financial Assets

The Company recognizes Loss allowances using the expected credit Loss (ECL) model for the
Financial Assets which are not fair valued through Profit or Loss. Loss allowance for trade
receivables with no significant financing component is measured at an amount equal to
lifetime ECL. For all other Financial Assets, expected Credit Losses are measured at an
amount equal to the 12-month ECL, unless there has been a significant increase in credit
risk from initial recognition in which case those are measured at lifetime ECL. The amount of
expected Credit Losses (or reversal) that is required to adjust the loss allowance at the
reporting date to the amount that is required to be recognized is recognized as an
Impairment Gain or Loss in Profit or Loss.

b) Financial Liabilities and Equity Instruments
Classification as Debt or Equity

Debt and Equity Instruments issued by a Company are classified as either Financial Liabilities or
as Equity in accordance with the substance of the contractual arrangements and the definitions of
a Financial Liability and an Equity Instrument.

Equity Instruments

An Equity Instrument is any contract that evidences a residual interest in the assets of an entity
after deducting all of its Liabilities. Equity Instruments issued by a Company entity are
recognized at the proceeds received, net of direct issue costs.

Repurchase of the Company''s own Equity Instruments is recognized and deducted directly in
equity. No Gain or Loss is recognized in statement of Profit and Loss on the purchase, sale,
issue or cancellation of the Company''s own Equity Instruments.

Financial Liabilities

Initial Recognition and Measurement

All Financial Liabilities are recognized initially at fair value and, in the case of Loans and
Borrowings and Payables, net of directly attributable transaction costs.

The Company''s Financial Liabilities include trade and other payables, Loans and Borrowings
including bank overdrafts, Financial Guarantee Contracts and Derivative Financial Instruments.

Subsequent Measurement

All Financial Liabilities are subsequently measured at amortized cost using the effective
interest method The measurement of Financial Liabilities depends on their classification, as
described below:

i) Loans and Borrowings

After initial recognition, interest-bearing Loans and Borrowings are subsequently measured at
amortized cost using the EIR method. Gains and losses are recognized in Profit or Loss when
the liabilities are derecognized as well as through the EIR amortization process.

Amortized cost is calculated by taking into account any discount or premium on acquisition and
fees or costs that are an integral part of the EIR. The EIR amortization is included as finance
costs in the statement of Profit and Loss.

ii) Trade and Other Payables

A payable is classified as ''Trade Payable'' if it is in respect of the amount due on account of
goods purchased or services received in the normal course of business. 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.

De-recognition

A Financial Liability is derecognized when the obligation under the liability is discharged or
cancelled or expires. The difference between the carrying amount of a Financial Liability that
has been extinguished or transferred to another party and the consideration paid, including any
Non-Cash Assets transferred or Liabilities assumed, is recognized in the Statement of Profit or
Loss.

c) Derivative Financial Instruments

The Company holds derivative Financial Instruments such as Foreign Exchange forward and option
contracts to mitigate the risk of changes in exchange rates on Foreign Currency Exposures. The
counterparty for these contracts is generally a bank.

Although the Company believes that these derivatives constitute hedges from an economic
perspective, they may not qualify for hedge accounting under Ind-AS 109, Financial Instruments.
Any derivative that is either not designated a hedge, or is so designated but is ineffective as per
Ind-AS 109, is categorized as a Financial Asset or Financial Liability, at fair value through Profit
or Loss.

Derivatives not designated as hedges are recognized initially at fair value and attributable
transaction costs are recognized in the Statement of Profit and Loss when incurred. Subsequent
to initial recognition,these derivatives are re-measured at fair value through Profit or Loss at the
end of each reporting period and the resulting exchange Gains or Losses recognized in Profit
or Loss immediately. Assets/liabilities in this category are presented as Current Assets/Current
Liabilities if they are either held for trading or are expected to be realized within 12 months after
the Balance Sheet Date.

d) Reclassification of Financial Assets and Financial Liabilities

The Company determines classification of Financial Assets and Liabilities on initial recognition.
After initial recognition, no reclassification is made for Financial Assets which are Equity
Instruments and Financial Liabilities. For Financial Assets which are debt instruments, a

reclassification is made only if there is a change in the business model for managing those assets.
Changes to the business model are expected to be infrequent. The Company''s senior
management determines change in the business model as a result of external or internal
changes which are significant to the Company''s operations. Such changes are evident to
external parties. A change in the business model occurs when the Company either begins or
ceases to perform an activity that is significant to its operations. If the Company reclassifies
Financial Assets, it applies the reclassification prospectively from the reclassification date
which is the first day of the immediately nextreporting period following the change in business
model. The Company does not restate any previously recognized Gains, Losses (including
impairment Gains or Losses) or interest.

e) 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 recognized amounts and there
is an intention to settle on a net basis, to realize the assets and settle the liabilities
simultaneously.

1.3 Impairment of Non-Financial Assets

The Company assesses, at each reporting date, whether there is an indication that an asset may
be impaired. If any indication exists, or when annual impairment testing for an asset is required,
the company estimates the asset''s recoverable amount. An asset''s recoverable amount is the
higher of an asset''s or cash-generating units (CGU) fair value less costs of disposal and its value
in use. Recoverable amount is determined for an individual asset, unless the asset does not
generate cash inflows that are largely independent of those from other assets or groups of
assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the
asset is considered impaired and is written down to its recoverable amount.

In assessing value in use, the estimated future cash flows are discounted to their present value
using a pre- tax discount rate that reflects current market assessments of the time value of money
and the risks specific to the asset. In determining fair value less costs of disposal, recent market
transactions are taken into account. If no such transactions can be identified, an appropriate
valuation model is used. These calculations are corroborated by valuation multiples, quoted
share prices for publicly traded companies or other available fair value indicators.

The Company bases its impairment calculation on detailed budgets and forecast calculations,
which are prepared separately for each of the Company''s CGUs to which the individual assets
are allocated. These budgets and forecast calculations generally cover a period of five years.
For longer periods, a long-term growth rate is calculated and applied to project future cash
flows after the fifth year. To estimate cash flow projections beyond periods covered by the
most recent budgets/forecasts, the Company extrapolates cashflow projections in the budget
using a steady or declining growth rate for subsequent years, unless an increasing rate can be
justified. In any case, this growth rate does not exceed the long-term average growth rate for
the products, industries, or country or countries in which the entity operates, or for the market
in which the asset is used.

Impairment Losses, including Impairment on Inventories, are recognized in the Statement of
Profit and Loss.

For Impairment of Assets, an assessment is made at each reporting date to determine whether
there is an indication that previously recognized impairment losses no longer exist or have

decreased. If such indication exists, the Company estimates the asset''s or CGU''s recoverable
amount.

1.4 Foreign Exchange Transactions and Translation

The Company''s Financial Statements are presented in Indian Rupees which is the Company''s
Functional Currency.

Foreign Currency transactions are recorded, on initial recognition in the Functional Currency, by
applying to the Foreign Currency amount the spot exchange rate between the Functional Currency
and the Foreign Currency at the date of the transaction.

Monetary Assets and Liabilities denominated in foreign currencies (except financial instruments
designated as hedge instruments) are translated at the functional currency spot rates of
exchange at the reporting date. Exchange differences arising on settlement or translation of
monetary items are recognized in Profit or Loss.

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.

1.5 Employee benefits

a) Short Term Employee Benefit

Short-Term Employee Benefit obligations are measured on an undiscounted basis and are
expensed as the related service is provided. A Liability is recognized for the amount expected to
be paid, if the Company has a present legal or constructive obligation to pay this amount as a
result of past service provided by the employee, and the amount of obligation can be
estimated reliably.

b) Defined Contribution Plan

The Company makes contributions towards government administered Provident Fund
Scheme. Obligations for contributions to defined contribution plans are recognized as an
Employee Benefit Expense in the statement of Profit and Loss in the period during which the
related services are renderedby employees.

Prepaid contribution are recognized as an Asset to the extent that a cash refund or reduction in
future paymentsis available.

c) Defined Benefit Plan

The Company''s net obligation in respect of defined benefit plans is calculated separately for
each plan by estimating the amount of future benefit that 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 obligations is performed annually by a qualified actuary using
the projected unit credit method. When the calculation results in a potential asset for the
Company, the recognized asset is limited to the present value of economic benefits available in the
form of any future refunds from the plan or reductions in future contributions to the plan. In
order to calculate the present value of economic benefits, consideration is given to any
applicable minimum funding requirements.

Remeasurement of the net defined benefit liability, which comprise actuarial Gains and Losses,
the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding
interest), are recognized immediately in Other Comprehensive Income. Net interest expense

(income) on the net defined liability (assets) for the period is computed by applying the discount
rate, used to measure the net defined liability (assets), to the net defined liability (assets) at the
start of the financial year, taking into account any changes as a result of contribution and
benefit payments during the year. Net Interest Expense and Other Expenses related to defined
benefit plans are recognized in statement of Profit or Loss.

When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit
that relatesto past service or the Gain or Loss on curtailment is recognized immediately in Profit
or Loss. The Company recognizes Gains and Losses on the settlement of a defined benefit plan
when the settlement occurs.

d) Other Long-Term Employee Benefits

The Company''s net obligation in respect of long-term employee benefits is the amount of future
benefit that employees have earned in return for their service in the current and prior periods.
That benefit is discounted to determine its present value and fair value of any related assets is
deducted. The obligation is measured on the basis of an annual independent actuarial
valuation using the projected unit credit method. Re- Measurement Gains or Losses are
recognized in Profit or Loss in the period in which they arise.

e) Termination Benefits

The Company recognizes a liability and expense for termination benefits at the earlier of the
following dates:

(a) When the entity can no longer withdraw the offer of those benefits; and

(b) When the entity recognizes costs for a restructuring that is within the scope of Ind-AS
37 and involves the payment of Termination Benefits.

If the benefits are not expected to be settled wholly within twelve months of the reporting
date, then they are discounted.

1.6 Income Taxes

Income Tax comprises Current and Deferred Tax. It is recognized in Profit or Loss except to the
extent that it relates to an item recognized directly in equity or in other comprehensive income,
in which case, the current and deferred tax are also recognized directly in equity or in other
comprehensive income respectively.

a) Current Tax

Current Tax comprises the expected tax payable on the taxable profit for the year and any
adjustment to the tax payable or receivable in respect of previous years. Taxable profit differs
from ''Profit Before Tax'' as reported in the statement of Profit and Loss because of items of
Income or Expense that are taxable or deductible in other years and items that are never
taxable or deductible.

Current Tax is determined on the basis of Taxable Income and Tax Credits computed for the
Company, in accordance with applicable tax rates (and tax laws), enacted or substantively
enacted by the reporting date, of the respective jurisdiction where it operates.

Current Tax Assets and Current Tax Liabilities are offset only if there is a legally enforceable right
to set off the recognized amounts, and it is intended to realize the asset and settle the liability
on a net basis or simultaneously.

b) Deferred tax

Deferred Tax is recognized in respect of temporary differences between the carrying amounts
of Assets andLiabilities for financial reporting purposes and the corresponding amounts used
for taxation purposes.

Deferred Tax Assets are recognized for all deductible temporary differences, carried forward
Tax Credits and any Tax Losses. Deferred Tax Assets are recognized to the extent that it is
probable that future Taxable Profits will be available against which they can be used. 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 utilized. Unrecognized Deferred Tax Assets are re-assessed
at each reporting date and are recognized 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 to
the period when the asset is realized or the liability is settled, based on tax rates (and tax laws)
that have been enacted or substantively enacted by the reporting date.

Deferred Tax Assets and Deferred Tax Liabilities are offset if a legally enforceable right exists to
offset Deferred Tax Liabilities and Assets and the deferred taxes relate to the same taxable
entity and the same taxation authority.

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Mar 31, 2024

SIGNIFICANT ACCOUNTING POLICIES AND NOTES ON ACCOUNTS 1. Company overview

The Company was founded on April 13, 2009, as a private limited company called Manomay Tex India Private Limited, and it was later converted to a public limited company on January 6, 2017.

The Company primarily manufacture and sell denim fabrics in domestic and international markets, and have an integrated production operation in Rajasthan (India). The Company has ventured into 14 overseas markets, and customer base is currently distributed across India and International markets such as South America, the Middle East, and Asia. In the textile sector, we are known and recognized by the BRAND NAME MANOMAY.

The Company set up its integrated manufacturing unit for production of Denim production operation at Aaraji No. 5,6,7 Gram-Jojro Ka Khera Tehsil -Gangrar Dist- Chittorgarh -312901(Rajasthan) India & Spinning production operation at Aaraji No. 983, 989, 990, 991, 992/1568,993/1570, Village -Undawa, Tehsil-Gangrar, Distt Chittorgarh -312901 Rajasthan (India).

The Denim unit is spread over 2.03 hectares and is equipped with dyeing, weaving and finishing facilities of yarn/fabric. The denim manufactured by us ranges from 9 to 14 Oz/ Sq. yd. with different blends of cotton, polyester, etc. with foam and wet finishes. The unit is equipped with adequate facilities and machineries. We procure the raw materials i.e. yarn from our Spinning Unit and the local suppliers and weave fabric. The process of sizing, dyeing and finishing is done it Self and outsourced to the third parties.

Our promoters have experience in the line of business and look after strategic as well as day to day business operations. Over the years our Company has carved its foot prints in the industry which can be witnessed by the 100x growth in our total revenue from Rs. 576.93 lakhs in 2010 to Rs.58412.46 lakhs in 2024. Our integrated manufacturing facility and our relationship with our traders are key factors of success in the industry. Our brand has been well received until now and we shall, continue to endeavor to build brand equity by supplying qualitative products at competitive prices.

2. Significant accounting policies

2.1 Basis of preparation A Statement of compliance

The financial statements have been prepared in accordance with the Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 (as amended) prescribed under section 133 of the Companies Act,2013(''Act'')

B Functional and presentation currency

The financial statements are presented in Indian Rupees (''INR'') which is also the Company''s functional currency and all values are rounded to the nearest lakhs, except when otherwise indicated.

C Basis of measurement

The Financial Statements are prepared on accrual basis under the Historical Cost convention except certain Financial Assets and Liabilities (including Derivatives instruments) that are measured at fair value.

D Use of estimates

The preparation of the financial statements in conformity with Ind AS requires management to make estimates, judgments and assumptions. These estimates, judgments and assumptions affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the period. Application of accounting policies that require critical accounting estimates involving complex and subjective judgments and the use of assumptions in these financial statements have been disclosed in Note 2.22

Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the financial statements.

E Current versus non-current classification

All assets and liabilities have been classified as current or non-current. Based on the nature of product & activities of the Company and their realization in cash and cash equivalent, the Company has determined its operating cycle as 12 months for the purpose of current and noncurrent classification of assets and liabilities.

Deferred tax assets and deferred tax liabilities are classified as non-current assets and liabilities. F Measurement of fair values

A number of the Company''s accounting policies and disclosures require measurement of fair values, for both financial and non-financial assets and liabilities

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:

• In the principal market for the asset or liability, or

• In the absence of a principal market, in the most advantageous market for the asset or liability and the Company has access to the principal or the most advantageous market.

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.

A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

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:

Level 1 — Quoted (unadjusted) market prices in active market for identical assets or liabilities

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

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 ofeach reporting period.

For the purpose of fair value disclosures, the Company has determined classes of assets & liabilities on the basis of the nature, characteristics and the 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 note.

2.2 Revenue recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable. Revenue is reduced for estimated rebates and other similar allowances

Sale of goods

Revenue from the sale of goods is recognized, when all the significant risks and rewards of ownership of the goods have passed to the buyer, the Company no longer retains continuing managerial involvement to the degree usually associated with ownership nor has effective control over the goods sold, the amount of revenue and costs associated with the transaction can be measured reliably and no significant uncertainty exists regarding the amount of consideration that will be derived from the sales of goods. Revenue is disclosed and net of returns, trade discounts, taxes and amount collected on behalf of third parties.

Other Operating revenue

a) Export incentives are accounted for in the year of export.

b) Interest on bank deposits is recognized on the effective interest rate method basis taking into account the amounts invested and the rate of interest applicable.

c) Interest from trade receivables and other financial assets are recognized when it is probable that the economic benefit will flow to the entity and the amount can be measured reliably.

d) Claim lodged with insurance companies is recognized as income on acceptance by the insurance Companies.

2.3 Government grants

Government grants are recognized only when there is reasonable assurance that the grants will be received and all attached conditions will be complied with.

Government grants related to revenue are recognized on a systematic basis in the statement of profit and loss over the periods necessary to match them with the related costs which they are intended to compensate. If the grants are related to subvention a particular expense, it is deducted form that expense in the year of recognition of government grant.

Government grants related to assets are treated as deferred income and are recognized in the statement of profit and loss on a systematic and rational basis over the useful life of the related asset.

2.4 Inventories

Inventories are measured at lower of cost and net realizable value after providing for obsolescence, wherever considered necessary. Cost of inventories comprises of cost of material, cost of conversion and other costs, including manufacturing overheads, incurred in bringing them to their respective present location and condition. Cost of raw material, stores, packing materials and other products are determined on FIFO / Actual cost basis.

2.5 Property, plant and equipment

On transition to Ind-AS, the Company has opted to continue with the carrying value of all of its property, plant and equipment recognized as at 1st April, 2021, measured as per previous GAAP and use that carrying value as the deemed cost of the property, plant & equipment.

Freehold Land is carried at historical cost.

All other items of property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Cost includes its purchase price, including freight, duties and non- refundable purchase taxes, after deducting trade discounts and rebates. It includes other costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Subsequent expenditures related to an item of property, plant and equipment are added to its carrying value only when it is probable that the future economic benefits from the asset will flow to the Company & cost can be reliably measured.

When significant parts of plant and equipment are required to be replaced at intervals, the company depreciates them separately based on their specific useful lives. Likewise, when a major inspection is performed, its cost is recognized in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognized in Statement of profit and loss as incurred. The present value of the expected cost for the decommissioning of an asset after its use i s included in the cost of the respective asset if the recognition criteria for a provision are met.

An item of property, plant and equipment and any significant part initially recognized is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the income statement when the asset is derecognized.

Depreciation

Depreciation is recognized for property, plant and equipment so as to write-off the cost less residual values over their estimated useful lives. The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis taking into account commercial and technological obsolescence as well as normal wear and tear.

Depreciation on tangible assets is provided on straight line method over the useful lives prescribed Part C of Schedule II of Companies Act, 2013

Free hold land is not depreciated.

Depreciation on additions to or on disposal of property, plant and equipment is calculated on

pro-rata basis i.e. from (up to) the date on which the Property, Plant and Equipment is available for use (disposed off).

Derecognition of PPE

An item of property, plant and equipment and any significant part initially recognized is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the property, plant and equipment) is included in the statement of profit & loss when the property, plant and equipment is derecognized.

2.6 Capital Work-in-Progress

The cost of self-constructed assets includes the cost of materials & direct labor, any other costs directly attributable to bringing the assets to the location and condition necessary for it to be capable of operating in the manner intended by management and borrowing costs.

Expenses directly attributable to construction of property, plant and equipment incurred till they are ready for their intended use are identified and allocated on a systematic basis on the cost of related assets.

2.7 Intangible assets and Intangible Assets under Development

On transition to Ind AS, the Company has opted to continue with the carrying value of all its intangible assets recognized as at 1^st April, 2021 measured as per previous GAAP and used that carrying value as the deemed cost of the intangible assets.

Intangible assets are stated at acquisition cost, net of accumulated amortization and accumulated impairment losses, if any. Gains or losses arising from the retirement or disposal of an intangible asset are determined as the difference between the disposal proceeds and the carrying amount of the asset and are recognized as income or expense in the Statement of Profit and Loss.

Intangible assets with finite lives are amortized over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization expense on intangible assets with finite lives is recognized in the statement of profit and loss unless such expenditureforms part of carrying value of another asset.

Intangible Assets with finite useful lives are amortized on a straight line basis over the following period:

Transmission Line 10 Years

Computer software 3 years

The assets'' residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.

Research and Development costs

Research costs are expensed as incurred. Development costs relating to new projects are recognized as intangible assets and are carried forward under Intangible Assets under Development until the completion of the project when they are capitalized as Intangible assets, if the following conditions are satisfied:

¦ It is technically feasible to complete the asset so that it will be available for use;

¦ Management intends to complete the asset and use or sell it;

¦ There is an ability to use or sell the asset;

¦ It can be demonstrated how the asset will generate probable future economic benefits;

¦ Adequate technical, financial and other resources to complete the development and to use or sell the asset are available; and

¦ The expenditure attributable to the asset during its development can be reliably measured.

1.1 Investment properties

Investment Property is property held either to earn rental income or capital appreciation or for both, but not for sale in the ordinary course of business, use in production or supply of goods or services or for administration purposes.

Investment properties are measured initially at cost, including transaction costs. Subsequent to initial recognition, investment properties are stated at cost less accumulated depreciation and accumulated impairment loss, if any.

Depreciation is provided over the estimated useful life of the investment property lives which may be different from the useful life prescribed in Schedule II to the Companies Act, 2013.

Investment properties are derecognized either when they have been disposed of or when they are permanently withdrawn from use and no future economic benefit is expected from their disposal. The difference between the net disposal proceeds and the carrying amount of the asset is recognized in profit or loss in the period of de-recognition.

1.2 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. Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions of the instruments.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in statement of profit and loss.

a) Financial assets

All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis. Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the time frame established by regulation or convention in the market place.

All recognized financial assets are subsequently measured in their entirety at either amortized cost or fairvalue, depending on the classification of the financial assets.

i) Financial assets at amortized cost

A financial asset is subsequently measured at amortized cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

ii) Financial assets at fair value through other comprehensive income

A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

On initial recognition, the Company makes an irrevocable election on an instrument-byinstrument basis to present the subsequent changes in fair value in other comprehensive income pertaining to investments in equity instruments, other than equity investment which are held for trading. Subsequently, they are measured at fair value with gains and losses arising from changes in fair value, excluding dividends, recognized in other comprehensive income and accumulated in the ''Reserve for equity instruments through other comprehensive income''. The cumulative gain or loss is not reclassified to profit or loss on disposal of the investments. There is no recycling of the amounts from OCI to P&L, even on sale of investment. However, the Company may transfer the cumulative gain or loss within equity.

iii) Financial assets at fair value through profit or loss (FVTPL)

Investment in equity instruments are classified as at FVTPL, unless the Company irrevocably elects on initial recognition to present subsequent changes in fair value in other comprehensive income for investment in equity instruments which are not held for trading.

Other financial assets are measured at fair value through profit or loss unless it is measured at amortized cost or at fair value through other comprehensive income on initial recognition.

The transaction costs directly attributable to the acquisition of financial assets and liabilities at fair value through profit or loss are immediately recognized in profit or loss.

De-recognition

The Company derecognizes a financial asset when the contractual rights to receive the cash flows from the financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition under Ind AS 109.

Impairment of financial assets

The Company recognizes loss allowances using the expected credit loss (ECL) model for the financial assets which are not fair valued through profit or loss. Loss allowance for trade receivables with no significant financing component is measured at an amount equal to lifetime ECL. For all other financial assets, expected credit losses are measured at an amount equal to the 12-month ECL, unless there has been a significant increase in credit risk from initial recognition in which case those are measured at lifetime ECL. The amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recognized is recognized as an impairment gain or loss in profit or loss.

b) Financial liabilities and equity instruments Classification as debt or equity

Debt and equity instruments issued by a Company are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by a Company entity are recognized at the proceeds received, net of direct issue costs.

Repurchase of the Company''s own equity instruments is recognized and deducted directly in equity. No gain or loss is recognized in statement of profit and loss on the purchase, sale, issue or cancellation of the Company''s own equity instruments.

Financial liabilities

Initial recognition and measurement

All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.

The Company''s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts, financial guarantee contracts and derivative financial instruments.

Subsequent measurement

All financial liabilities are subsequently measured at amortized cost using the effective interest method The measurement of financial liabilities depends on their classification, as described below:

i) Loans and borrowings

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using the EIR method. Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as through the EIR amortization process.

Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance costs in the statement of profit and loss.

ii) Trade and other payables.

A payable is classified as ''trade payable'' if it is in respect of the amount due on account of goods purchased or services received in the normal course of business. 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.

De-recognition

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. The difference between the carrying amount of a financial liability that has been extinguished ortransferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in the statement of profit or loss.

c) Derivative financial instruments

The Company holds derivative financial instruments such as foreign exchange forward and option contracts to mitigate the risk of changes in exchange rates on foreign currency exposures. The counterparty for these contracts is generally a bank.

Although the Company believes that these derivatives constitute hedges from an economic perspective, they may not qualify for hedge accounting under Ind AS 109, Financial Instruments. Any derivative that is either not designated a hedge, or is so designated but is ineffective as per Ind AS 109, is categorized as a financial asset or financial liability, at fair value through profit or loss.

Derivatives not designated as hedges are recognized initially at fair value and attributable transaction costs are recognized in the statement of profit and loss when incurred. Subsequent to initial recognition,these derivatives are re-measured at fair value through profit or loss at the end of each reporting period and the resulting exchange gains or losses recognized in profit or loss immediately. Assets/liabilities in this category are presented as current assets/current liabilities if they are either held for trading or are expected to be realized within 12 months after the balance sheet date.

d) Reclassification of financial assets and financial liabilities

The Company determines classification of financial assets and liabilities on initial recognition. After initial recognition, no reclassification is made for financial assets which are equity instruments and financial liabilities. For financial assets which are debt instruments, a reclassification is made only if there is a change in the business model for managing those assets. Changes to the business model are expected to be infrequent. The Company''s senior management determines change in the business model as a result of external or internal changes which are significant to the Company''s operations. Such changes are evident to external parties. A change in the business model occurs when the Company either begins or ceases to perform an activity that is significant to its operations. If the Company reclassifies financial assets, it applies the reclassification prospectively from the reclassification date which is the first day of the immediately next reporting period following the change in business model. The Company does not restate any previously recognized gains, losses (including impairment gains or losses) or interest.

e) 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 recognized amounts and there

is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously.

1.3 Impairment of Non-Financial Assets

The Company assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the company estimates the asset''s recoverable amount. An asset''s recoverable amount is the higher of an asset''s or cash-generating units (CGU) fair value less costs of disposal and its value in use. Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre- tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs of disposal, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used. These calculations are corroborated by valuation multiples, quoted share prices for publicly traded companies or other available fair value indicators.

The Company bases its impairment calculation on detailed budgets and forecast calculations, which are prepared separately for each of the Company''s CGUs to which the individual assets are allocated. These budgets and forecast calculations generally cover a period of five years. For longer periods, a long-term growth rate is calculated and applied to project future cash flows after the fifth year. To estimate cash flow projections beyond periods covered by the most recent budgets/forecasts, the Company extrapolates cashflow projections in the budget using a steady or declining growth rate for subsequent years, unless an increasing rate can be justified. In any case, this growth rate does not exceed the long-term average growth rate for the products, industries, or country or countries in which the entity operates, or for the market in which the asset is used.

Impairment losses, including impairment on inventories, are recognized in the Statement of profit and loss.

For impairment of assets, an assessment is made at each reporting date to determine whether there is an indication that previously recognized impairment losses no longer exist or have decreased. If such indication exists, the Company estimates the asset''s or CGU''s recoverable amount.

1.4 Foreign exchange transactions and Translation

The Company''s financial statements are presented in Indian Rupees which is the Company''s functional currency.

Foreign currency transactions are recorded, on initial recognition in the functional currency, by applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies (except financial instruments designated as hedge instruments) are translated at the functional currency spot rates of exchange at the reporting date. Exchange differences arising on settlement or translation of monetary items are recognized in profit or loss

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.

1.5 Employee benefits

a) Short Term Employee Benefit

Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. A liability is recognized for the amount expected to be paid, if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee, and the amount of obligation can be estimated reliably.

b) Defined Contribution Plan

The Company makes contributions towards government administered provident fund scheme. Obligations for contributions to defined contribution plans are recognized as an employee benefit expense in the statement of Profit and Loss in the period during which the related services are rendered by employees.

Prepaid contribution are recognized as an asset to the extent that a cash refund or reduction in future paymentsis available.

c) Defined Benefit Plan

The Company''s net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the amount of future benefit that 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 obligations is performed annually by a qualified actuary using the projected unit credit method. When the calculation results in a potential asset for the Company, the recognized asset is limited to the present value of economic benefits available in the form of any future refunds from the plan or reductions in future contributions to the plan. In order to calculate the present value of economic benefits, consideration is given to any applicable minimum funding requirements.

Remeasurement of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognized immediately in Other Comprehensive Income. Net interest expense (income) on the net defined liability (assets) for the period is computed by applying the discount rate, used to measure the net defined liability (assets), to the net defined liability (assets) at the start of the financial year, taking into account any changes as a result of contribution and benefit payments during the year. Net interest expense and other expenses related to defined benefit plans are recognized in statement of profit or loss.

When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relatesto past service or the gain or loss on curtailment is recognized immediately in profit or loss. The Company recognizes gains and losses on the settlement of a defined benefit plan when the settlement occurs.

d) Other long-term employee benefits

The Company''s net obligation in respect of long-term employee benefits is the amount of future benefit that employees have earned in return for their service in the current and prior periods. That benefit is discounted to determine its present value and fair value of any related assets is deducted. The obligation is measured on the basis of an annual independent actuarial valuation using the projected unit credit method. Re- measurement gains or losses are recognized in profit or loss in the period in which they arise.

e) Termination benefits

The Company recognizes a liability and expense for termination benefits at the earlier of the following dates:

(a) When the entity can no longer withdraw the offer of those benefits; and

(b) When the entity recognizes costs for a restructuring that is within the scope of Ind AS 37 and involves the payment of termination benefits.

If the benefits are not expected to be settled wholly within twelve months of the reporting date, then they are discounted.

1.6 Income taxes

Income tax comprises current and deferred tax. It is recognized in profit or loss except to the extent that it relates to an item recognized directly in equity or in other comprehensive income, in which case, the current and deferred tax are also recognized directly in equity or in other comprehensive income respectively.

a) Current tax

Current tax comprises the expected tax payable on the taxable profit for the year and any adjustment to the tax payable or receivable in respect of previous years. Taxable profit differs from ''profit before tax'' as reported in the statement of profit and loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible.

Current tax is determined on the basis of taxable income and tax credits computed for the Company, in accordance with applicable tax rates (and tax laws), enacted or substantively enacted by the reporting date, of the respective jurisdiction where it operates.

Current tax assets and current tax liabilities are offset only if there is a legally enforceable right to set off the recognized amounts, and it is intended to realize the asset and settle the liability on a net basis or simultaneously.

b) Deferred tax

Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the corresponding amounts used for taxation purposes.

Deferred tax assets are recognized for all deductible temporary differences, carried forward tax credits and any tax losses. Deferred tax assets are recognized to the extent that it is probable that future taxable profits will be available against which they can be used. 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 utilized. Unrecognized deferred tax assets are re-assessed at each reporting date and are recognized 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 to the period when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the reporting date.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to offset deferred tax liabilities and assets and the deferred taxes relate to the same taxable entity and the same taxation authority.

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Mar 31, 2023

1 Company overview

The Company was founded on April 13, 2009, as a private limited company called Manomay Tex India Private Limited, and it was later converted to a public limited company on January 6, 2017.

The Company primarily manufacture and sell denim fabrics in domestic and international markets, and have an integrated production operation in Rajasthan. The Company has ventured into 14 overseas markets, and customer base is currently distributed across India and International Markets such as South America, the Middle East, and Asia. In the textile sector, we are known and recognized by the BRAND NAME MANOMAY.

The Company started its commercial production by setting up a fabric weaving unit in Ichalkaranji by installing eight air-jet looms. Thereafter in 2011, the Company set up its integrated manufacturing unit for production of denim fabric in Jojron Ka Khera near Bhilwara. The unit is spread over 2.03 hectares and is equipped with dyeing, weaving and finishing facilities of yarn/fabric. The denim manufactured by us ranges from 9 to 14 Oz/ Sq. yd. with different blends of cotton, polyester, etc. with foam and wet finishes. The unit is equipped with adequate facilities and machineries. At Ichalkaranji unit, we are focused on manufacturing of suiting fabrics of different qualities as per the market demand. We procure the raw materials i.e. yarn from the local suppliers and weave fabric. The process of sizing, dyeing and finishing is outsourced to the third parties.

Our promoters have experience in the line of business and look after strategic as well as day to day business operations. Over the years our Company has carved its foot prints in the industry which can be witnessed by the 100x growth in our total revenue from Rs. 576.93 lakhs in 2010 to Rs.69887.88 lakhs in 2023. Our integrated manufacturing facility and our relationship with our traders are key factors of success in the industry. Our brand has been well received until now and we shall, continue to endeavor to build brand equity by supplying qualitative products at competitive prices.

2 Significant accounting policies2.1 Basis of preparationA Statement of compliance

a) The financial statements have been prepared in accordance with the Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 (as amended) prescribed under section 133 of the Companies Act,2013(''Act'')

First Time Adoption of Ind AS Transition of Ind AS

These are the company''s first standalone financial statements prepared in accordance with Ind AS. The accounting policies set out in Note 1 have been applied in preparing the financial statements for the year ended 31st March, 2023, the comparative information presented in these financial statements for the year ended 31st March, 2022 and 1st April, 2021. The effective date for Companies Ind AS Opening Balance Sheet is 1st April, 2021. (The date of transition to Ind AS)

First Time Adoption of Ind AS

These financial statements, for the year ended 31st March, 2023, are the first annual Ind AS financial statements, the Company has prepared in accordance with Ind AS. For periods up to and including the year ended 31st March, 2022, the Company prepared its financial statements in accordance with Accounting Standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP). Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for periods ending on 31 March, 2023, together with the comparative period data as at and for the year ended 31st March, 2022, as described in the summary of significant accounting policies. In preparing these financial statements, the Company''s opening balance sheet was prepared as at 01st April, 2021, the Company''s date of transition to Ind AS. This note explains the principal adjustments made by the Company in restating its Indian GAAP financial statements, including the balance sheet as at 01st April, 2021 and the previously published Indian GAAP financial statements as at and for the year ended 31st March, 2022.

Optional Exemptions and Mandatory Exceptions

In the Ind AS opening balance sheet as at 1st April, 2021, the carrying amounts of assets and liabilities from the Previous GAAP as at 31st March, 2021 are generally recognized and measured according to Ind AS. However, for certain individual cases, Ind AS 101 "First-time Adoption of Indian Accounting Standards" provides for optional exemptions and mandatory exceptions to the general principles of retrospective application of Ind AS. The Company has made use of the following exemptions and exceptions in preparing its opening Ind AS balance sheet:

i. Deemed cost

As per Ind AS 101, para D7AA, a first-time adopter to Ind ASs may elect to continue with the carrying value for all of its property, plant and equipment as recognized in the financial statements as at the date of transition to Ind ASs, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for decommissioning liabilities. Accordingly, the Company has elected to measure all of its property, plant and equipment and intangible assets at their previous GAAP carrying value.

ii. Borrowings

Ind AS 101 permits that if it is impracticable for an entity to apply retrospectively the effective interest method in Ind AS 109 ''Financial Instruments'', the fair value of the financial liability at

the date of transition to Ind AS shall be the new amortized cost of that financial liability at the date of transition to Ind AS

iii. Classification and measurement of Financial Assets

Ind AS 101 requires an entity to assess classification and measurement of financial assets (investment in debt instruments) on the basis of the facts and circumstances that exist at the date of transition to Ind AS

iv. De-recognition of financial assets and financial liabilities

As per Ind AS 101, a first-time adopter shall apply the de-recognition requirements in Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind Ass

v. Estimates:

An entity''s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP, unless there is objective evidence that those estimates were in error. Ind AS estimates as at 01st April, 2021 and 31st March, 2022 are consistent with the estimates as at the same date made in the conformity with previous GAAP

B Functional and presentation currency

The financial statements are presented in Indian Rupees (''INR'') which is also the Company''s functional currency and all values are rounded to the nearest lakhs, except when otherwise indicated.

C Basis of measurement

The separate financial statements have been prepared on the historical cost basis except for certain financial instruments and plan assets of defined benefit plans, which are measured at fair value

D Use of estimates

The preparation of the financial statements in conformity with Ind AS requires management to make estimates, judgments and assumptions. These estimates, judgments and assumptions affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the period. Application of accounting policies that require critical accounting estimates involving complex and subjective judgments and the use of assumptions in these financial statements have been disclosed in Note 2.22

Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the financial statements.

E Current versus non-current classification

All assets and liabilities have been classified as current or non-current. Based on the nature of product & activities of the Company and their realization in cash and cash equivalent, the Company has determined its operating cycle as 12 months for the purpose of current and non-current classification of assets and liabilities.

Deferred tax assets and deferred tax liabilities are classified as non-current assets and liabilities.

F Measurement of fair values

A number of the Company''s accounting policies and disclosures require measurement of fair values, for both financial and non-financial assets and liabilities

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:

• In the principal market for the asset or liability, or

• In the absence of a principal market, in the most advantageous market for the asset or liability and the Company has access to the principal or the most advantageous market.

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.

A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

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

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised 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:

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

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

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 recognised in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

For the purpose of fair value disclosures, the Company has determined classes of assets & liabilities on the basis of the nature, characteristics and the risks of the asset or liability and the level of the fair value hierarchy as explained above. This note summarises accounting policy for fair value. Other fair value related disclosures are given in the relevant note.

2.2 Revenue recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable. Revenue is reduced for estimated rebates and other similar allowances

Sale of goods

Revenue from the sale of goods is recognised, when all the significant risks and rewards of ownership of the goods have passed to the buyer, the Company no longer retains continuing managerial involvement to the degree usually associated with ownership nor has effective control over the goods sold, the amount of revenue and costs associated with the transaction can be measured reliably and no significant uncertainty exists regarding the amount of consideration that will be derived from the sales of goods. Revenue is disclosed and net of returns, trade discounts, taxes and amount collected on behalf of third parties.

Other Operating revenue

a) Export incentives are accounted for in the year of export.

b) Interest on bank deposits is recognized on the effective interest rate method basis taking into account the amounts invested and the rate of interest applicable.

c) Interest from trade receivables and other financial assets are recognized when it is probable that the economic benefit will flow to the entity and the amount can be measured reliably.

d) Claim lodged with insurance companies is recognized as income on acceptance by the insurance Companies.

Government grants

Government grants are recognized only when there is reasonable assurance that the grants will be received and all attached conditions will be complied with.

Government grants related to revenue are recognized on a systematic basis in the statement of profit and loss over the periods necessary to match them with the related costs which they are intended to compensate. If the grants are related to subvention a particular expense, it is deducted form that expense in the year of recognition of government grant.

Government grants related to assets are treated as deferred income and are recognized in the statement of profit and loss on a systematic and rational basis over the useful life of the related asset.

2.3 Inventories

Inventories are measured at lower of cost and net realizable value after providing for obsolescence, wherever considered necessary. Cost of inventories comprises of cost of material, cost of conversion and other costs, including manufacturing overheads, incurred in bringing them to their respective present location and condition. Cost of raw material, stores, packing materials and other products are determined on FIFO / Actual cost basis.

2.4 Property, plant and equipment

On transition to Ind-AS, the Company has opted to continue with the carrying value of all of its property, plant and equipment recognised as at 1st April, 2021, measured as per previous GAAP and use that carrying value as the deemed cost of the property, plant & equipment.

Freehold Land is carried at historical cost.

All other items of property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Cost includes its purchase price, including freight, duties and non- refundable purchase taxes, after deducting trade discounts and rebates. It includes other costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Subsequent expenditures related to an item of property, plant and equipment are added to its carrying value only when it is probable that the future economic benefits from the asset will flow to the Company & cost can be reliably measured.

When significant parts of plant and equipment are required to be replaced at intervals, the company depreciates them separately based on their specific useful lives. Likewise, when a major inspection is performed, its cost is recognised in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognised in Statement of profit and loss as incurred. The present value of the expected cost for the decommissioning of an asset after its use is included in the cost of the respective asset if the recognition criteria for a provision are met.

An item of property, plant and equipment and any significant part initially recognised is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the income statement when the asset is derecognized

Depreciation

Depreciation is recognised for property, plant and equipment so as to write-off the cost less residual values over their estimated useful lives. The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis taking into account commercial and technological obsolescence as well as normal wear and tear.

Depreciation on tangible assets is provided on straight line method over the useful lives prescribed under Schedule II of Companies Act, 2013

Free hold land is not depreciated.

Depreciation on additions to or on disposal of property, plant and equipment is calculated on pro-rata basis i.e. from (up to) the date on which the Property, Plant and Equipment is available for use (disposed off).

Derecognition of PPE

An item of property, plant and equipment and any significant part initially recognized is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the property, plant and equipment) is included in the statement of profit & loss when the property, plant and equipment is derecognized.

2.5 Intangible assets

On transition to Ind AS, the Company has opted to continue with the carrying value of all its intangible assets recognised as at 1^st April, 2021 measured as per previous GAAP and used that carrying value as the deemed cost of the intangible assets

Intangible assets are stated at acquisition cost, net of accumulated amortisation and accumulated impairment losses, if any. Gains or losses arising from the retirement or disposal of an intangible asset are determined as the difference between the disposal proceeds and the carrying amount of the asset and are recognised as income or expense in the Statement of Profit and Loss.

Intangible assets with finite lives are amortised over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortisation expense on intangible assets with finite lives is recognised in the statement of profit and loss unless such expenditure forms part of carrying value of another asset.

Intangible Assets with finite useful lives are amortized on a straight line basis over the following period:

Transmission Line 10 Years

Computer software 3 years

The assets'' residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.

Research and Development costs

Research costs are expensed as incurred. Development costs relating to new projects are recognised as intangible assets and are carried forward under Intangible Assets under Development until the completion of the project when they are capitalised as Intangible assets, if the following conditions are satisfied:

¦ It is technically feasible to complete the asset so that it will be available for use;

¦ Management intends to complete the asset and use or sell it;

¦ There is an ability to use or sell the asset;

¦ It can be demonstrated how the asset will generate probable future economic benefits;

¦ Adequate technical, financial and other resources to complete the development and to use or sell the asset are available; and

¦ The expenditure attributable to the asset during its development can be reliably measured.

2.6 Investment properties

Investment Property is property held either to earn rental income or capital appreciation or for both, but not for sale in the ordinary course of business, use in production or supply of goods or services or for administration purposes.

Investment properties are measured initially at cost, including transaction costs. Subsequent to initial recognition, investment properties are stated at cost less accumulated depreciation and accumulated impairment loss, if any.

Depreciation is provided over the estimated useful life of the investment property lives which may be different from the useful life prescribed in Schedule II to the Companies Act, 2013.

Investment properties are derecognized either when they have been disposed of or when they are permanently withdrawn from use and no future economic benefit is expected from their disposal. The difference between the net disposal proceeds and the carrying amount of the asset is recognised in profit or loss in the period of derecognition.

2.7 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. Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions of the instruments.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in statement of profit and loss.

a) Financial assets

All regular way purchases or sales of financial assets are recognised and derecognised on a trade date basis. Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the time frame established by regulation or convention in the market place.

All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value, depending on the classification of the financial assets.

i) Financial assets at amortised cost

A financial asset is subsequently measured at amortised cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

ii) Financial assets at fair value through other comprehensive income

A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

On initial recognition, the Company makes an irrevocable election on an instrument-byinstrument basis to present the subsequent changes in fair value in other comprehensive income pertaining to investments in equity instruments, other than equity investment which are held for trading. Subsequently, they are measured at fair value with gains and losses arising from changes in fair value, excluding dividends, recognised in other comprehensive income and accumulated in the ''Reserve for equity instruments through other comprehensive income''. The cumulative gain or loss is not reclassified to profit or loss on disposal of the investments. There is no recycling of the amounts from OCI to P&L, even on sale of investment. However, the Company may transfer the cumulative gain or loss within equity.

iii) Financial assets at fair value through profit or loss (FVTPL)

Investment in equity instruments are classified as at FVTPL, unless the Company irrevocably elects on initial recognition to present subsequent changes in fair value in other comprehensive income for investment in equity instruments which are not held for trading.

Other financial assets are measured at fair value through profit or loss unless it is measured at amortised cost or at fair value through other comprehensive income on initial recognition. The transaction costs directly attributable to the acquisition of financial assets and liabilities at fair value through profit or loss are immediately recognised in profit or loss.

De-recognition

The Company derecognizes a financial asset when the contractual rights to receive the cash flows from the financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition under Ind AS 109.

Impairment of financial assets

The Company recognizes loss allowances using the expected credit loss (ECL) model for the financial assets which are not fair valued through profit or loss. Loss allowance for trade receivables with no significant financing component is measured at an amount equal to lifetime ECL. For all other financial assets, expected credit losses are measured at an amount equal to the 12-month ECL, unless there has been a significant increase in credit risk from initial recognition in which case those are measured at lifetime ECL. The amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recognised is recognized as an impairment gain or loss in profit or loss.

b) Financial liabilities and equity instruments Classification as debt or equity

Debt and equity instruments issued by a Company are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by a Company entity are recognised at the proceeds received, net of direct issue costs.

Repurchase of the Company''s own equity instruments is recognised and deducted directly in equity. No gain or loss is recognised in statement of profit and loss on the purchase, sale, issue or cancellation of the Company''s own equity instruments.

Financial liabilities

Initial recognition and measurement

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.

The Company''s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts, financial guarantee contracts and derivative financial instruments.

Subsequent measurement

All financial liabilities are subsequently measured at amortised cost using the effective interest method the measurement of financial liabilities depends on their classification, as described below:

i) Loans and borrowings

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using the EIR method. Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as through the EIR amortization process.

Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance costs in the statement of profit and loss.

ii) Trade and other payables.

A payable is classified as ''trade payable'' if it is in respect of the amount due on account of goods purchased or services received in the normal course of business. 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.

De-recognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. The difference between the carrying amount of a financial liability

that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in the statement of profit or loss.

c) Derivative financial instruments

The Company holds derivative financial instruments such as foreign exchange forward and option contracts to mitigate the risk of changes in exchange rates on foreign currency exposures. The counterparty for these contracts is generally a bank.

Although the Company believes that these derivatives constitute hedges from an economic perspective, they may not qualify for hedge accounting under Ind AS 109, Financial Instruments. Any derivative that is either not designated a hedge, or is so designated but is ineffective as per Ind AS 109, is categorized as a financial asset or financial liability, at fair value through profit or loss.

Derivatives not designated as hedges are recognized initially at fair value and attributable transaction costs are recognized in the statement of profit and loss when incurred. Subsequent to initial recognition, these derivatives are re-measured at fair value through profit or loss at the end of each reporting period and the resulting exchange gains or losses recognized in profit or loss immediately. Assets/liabilities in this category are presented as current assets/current liabilities if they are either held for trading or are expected to be realized within 12 months after the balance sheet date.

d) Reclassification of financial assets and financial liabilities

The Company determines classification of financial assets and liabilities on initial recognition. After initial recognition, no reclassification is made for financial assets which are equity instruments and financial liabilities. For financial assets which are debt instruments, a reclassification is made only if there is a change in the business model for managing those assets. Changes to the business model are expected to be infrequent.The Company''s senior management determines change in the business model as a result of external or internal changes which are significant to the Company''s operations. Such changes are evident to external parties. A change in the business model occurs when the Company either begins or ceases to perform an activity that is significant to its operations. If the Company reclassifies financial assets, it applies the reclassification prospectively from the reclassification date which is the first day of the immediately next reporting period following the change in business model. The Company does not restate any previously recognised gains, losses (including impairment gains or losses) or interest.

e) 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, to realise the assets and settle the liabilities simultaneously.

2.8 Impairment of Non-Financial Assets

The Company assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the company estimates the asset''s recoverable amount. An asset''s recoverable amount is the higher of an asset''s or cash-generating unit''s (CGU) fair value less costs of disposal and its value in use. Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre- tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs of disposal, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used. These calculations are corroborated by valuation multiples, quoted share prices for publicly traded companies or other available fair value indicators.

The Company bases its impairment calculation on detailed budgets and forecast calculations, which are prepared separately for each of the Company''s CGUs to which the individual assets are allocated. These budgets and forecast calculations generally cover a period of five years. For longer periods, a long-term growth rate is calculated and applied to project future cash flows after the fifth year. To estimate cash flow projections beyond periods covered by the most recent budgets/forecasts, the Company extrapolates cash flow projections in the budget using a steady or declining growth rate for subsequent years, unless an increasing rate can be justified. In any case, this growth rate does not exceed the long-term average growth rate for the products, industries, or country or countries in which the entity operates, or for the market in which the asset is used.

Impairment losses, including impairment on inventories, are recognised in the Statement of profit and loss.

For impairment of assets, an assessment is made at each reporting date to determine whether there is an indication that previously recognised impairment losses no longer exist or have decreased. If such indication exists, the Company estimates the asset''s or CGU''s recoverable amount.

2.9 Foreign exchange transactions

The Company''s financial statements are presented in Indian Rupees which is the Company''s functional currency.

Foreign currency transactions are recorded, on initial recognition in the functional currency, by applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies (except financial instruments designated as hedge instruments) are translated at the functional currency spot rates of exchange at the reporting date. Exchange differences arising on settlement or translation of monetary items are recognised in profit or loss

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.

2.10 Employee benefitsa) Short Term Employee Benefit

Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. A liability is recognised for the amount expected to be paid, if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee, and the amount of obligation can be estimated reliably.

b) Defined Contribution Plan

The Company makes contributions towards government administered provident fund scheme. Obligations for contributions to defined contribution plans are recognised as an employee benefit expense in the statement of Profit and Loss in the period during which the related services are rendered by employees.

Prepaid contribution are recognised as an asset to the extent that a cash refund or reduction in future payments is available.

c) Defined Benefit Plan

The Company''s net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the amount of future benefit that 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 obligations is performed annually by a qualified actuary using the projected unit credit method. When the calculation results in a potential asset for the Company, the recognised asset is limited to the present value of economic benefits available in the form of any future refunds from the plan or reductions in future contributions to the plan. In order to calculate the present value of economic benefits, consideration is given to any applicable minimum funding requirements

Remeasurement of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognised immediately in Other Comprehensive Income. Net interest expense (income) on the net defined liability (assets) for the period is computed by applying the discount rate, used to measure the net defined liability (assets), to the net defined liability (assets) at the start of the financial year, taking into account any changes as a result of contribution and benefit payments during the year. Net interest expense and other expenses related to defined benefit plans are recognised in statement of profit or loss.

When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognised immediately in profit or loss. The Company recognises gains and losses on the settlement of a defined benefit plan when the settlement occurs.

d) Other long-term employee benefits

The Company''s net obligation in respect of long-term employee benefits is the amount of future benefit that employees have earned in return for their service in the current and prior periods. That benefit is discounted to determine its present value and fair value of any related assets is deducted. The obligation is measured on the basis of an annual independent actuarial valuation using the projected unit credit method. Remeasurement gains or losses are recognised in profit or loss in the period in which they arise.

e) Termination benefits

The Company recognises a liability and expense for termination benefits at the earlier of the following dates:

(a) When the entity can no longer withdraw the offer of those benefits; and

(b) When the entity recognises costs for a restructuring that is within the scope of Ind AS 37 and involves the payment of termination benefits.

If the benefits are not expected to be settled wholly within twelve months of the reporting date, then they are discounted.

2.11 Income taxes

Income tax comprises current and deferred tax. It is recognised in profit or loss except to the extent that it relates to an item recognised directly in equity or in other comprehensive income, in which case, the current and deferred tax are also recognised directly in equity or in other comprehensive income respectively.

a) Current tax

Current tax comprises the expected tax payable on the taxable profit for the year and any adjustment to the tax payable or receivable in respect of previous years. Taxable profit differs from ''profit before tax'' as reported in the statement of profit and loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible.

Current tax is determined on the basis of taxable income and tax credits computed for the Company, in accordance with applicable tax rates (and tax laws), enacted or substantively enacted by the reporting date, of the respective jurisdiction where it operates.

Current tax assets and current tax liabilities are offset only if there is a legally enforceable right to set off the recognised amounts, and it is intended to realise the asset and settle the liability on a net basis or simultaneously.

b) Deferred tax

Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the corresponding amounts used for taxation purposes.

Deferred tax assets are recognised for all deductible temporary differences, carried forward tax credits and any tax losses. Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available against which they can be used. 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 to the period when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the reporting date.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to offset deferred tax liabilities and assets and the deferred taxes relate to the same taxable entity and the same taxation authority.

2.12 Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, and 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 recognised 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.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

Contingent Liability is disclosed after careful evaluation of facts, uncertainties and possibility of reimbursement, unless the possibility of an outflow of resources embodying economic benefits is remote. Contingent liabilities are not recognised but are disclosed in notes.

Contingent assets are not recognised. However, when the realisation of income is virtually certain, then the related asset is no longer a contingent asset, but it is recognised as an asset.

2.13 Earnings per share

Basic earnings per equity share is computed by dividing the net profit attributable to the equity holders of the Company by the weighted average number of equity shares outstanding during the period. Diluted earnings per equity share is computed by dividing the net profit attributable to the equity holders of the Company by the weighted average number of equity shares considered for deriving basic earnings per equity share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. The dilutive potential equity shares are adjusted for the proceeds receivable had the equity shares been actually issued at fair value (i.e. the average market value of the outstanding equity shares). Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented.

The number of equity shares and potentially dilutive equity shares are adjusted retrospectively for all periods presented for any share splits and bonus shares issues including for changes effected prior to the approval of the financial statements by the Board of Directors.

2.14 Cash flow statement

Cash flows are reported using the indirect method, whereby profit before tax for the period is adjusted forthe 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 of the Company are segregated.

2.15 Borrowing costs

Borrowing costs are interest and other costs (including exchange differences relating to foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs) incurred in connection with the borrowing of funds. Borrowing costs directly attributable to acquisition or construction of an asset which necessarily take a substantial period of time to get ready for its intended use are capitalised as part of the cost of the asset. All other borrowing costs are recognised as an expense in the period in which they are incurred.

2.16 Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand, cheques on hand and short-term deposits with an original maturity of three months or less and highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value net of outstanding bank overdrafts as they are considered an integral part of the Company''s cash management.

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, net of outstanding bank overdrafts that are repayable on demand, as they are considered an integral part of the Company''s cash management.

2.17 Exceptional Items

When items of income and expense within profit or loss from ordinary activities are of such size, nature or incidence that their disclosure is relevant to explain the performance of the enterprise for the period, the nature and amount of such items is disclosed separately as Exceptional items.

2.18 Non-Current Assets held for sale

The Company classifies non-current assets and disposal groups as held for sale if their carrying amounts will be recovered principally through a sale/ distribution rather than through continuing use and the sale is considered highly probable. Management must be committed to the sale within one year from the date of classification.

The Company treats sale/distribution of the asset or disposal group to be highly probable when:

• The appropriate level of management is committed to a plan to sell the asset (or disposal group),

• An active programme to locate a buyer and complete the plan has been initiated (if applicable),

• The asset (or disposal group) is being actively marketed for sale at a price that is reasonable in relation to its current fair value.

• The sale is expected to qualify for recognition as a completed sale within one year from the date of classification, and

• Actions required to complete the plan indicated that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn.

Non-current assets held for sale and disposal groups are measured at the lower of their carrying amount and the fair value less costs to sell. Assets and liabilities classified as held for sale are presented separately in the balance sheet.

Property, plant and equipment and intangible assets once classified as held for sale are not depreciated or amortised.

2.19 Critical accounting estimates and judgements

In the course of applying the policies outlined above, the Company is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future period, if the revision affects current and future periods.

a) Impairment of financial assets

The impairment provisions for financial assets are based on assumptions about risk of default and expected loss rates. The Company uses judgement in making assumption and selecting the inputs to the impairment calculation, based on Company''s past history, existing market conditions as well as forward estimate at the end of each reporting period.

b) Income taxes

Management judgment is required for the calculation of provision for income taxes and deferred tax assets and liabilities. The Company reviews at each balance sheet date the carrying amount of deferred tax assets. The amount of tax payable in respect of any period is dependent upon the interpretation of the relevant tax rules. The factors used in estimates may differ from actual outcome which could lead to significant adjustment to the amounts reported in the financial statements.

c) Defined benefit plans

The cost of the defined benefit plan and other post-employment benefits and the present value of such obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual development in the future. These Includes the determination of the discount rate, future salary increases, mortality rates and attrition rate. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

d) Fair value measurements

Some of the Company''s assets and liabilities are measured at fair value for financial reporting purposes. The management determines the appropriate valuation techniques and inputs for fair value measurements. In estimating the fair value of an asset or a liability, the Company uses market-observable data to the extent it is available. In case where level 3 inputs are applied, the Company engages third party qualified valuers to perform the valuation. The management works closely with the qualified external valuers to establish the appropriate valuation techniques and inputs to the model.

e) Insurance claims

Insurance claims are recognized when the Company has reasonable certainty of recovery. Subsequently any change in recoverability is provided for.

2.20 Key sources of estimation uncertainties

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to carrying amounts of assets and liabilities within the next financial years are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

a) Useful lives and residual value of property, plant and equipment

Useful life and residual value of property, plant and equipment are based on management''s estimate of the expected life and residual value of those assets and is as per schedule II to the Companies Act 2013. These estimates are reviewed at the end of each reporting period. Any reassessment of these may result in change in depreciation expense for future years.

b) Impairment of property plant and equipment

At the end of each reporting period, the Company reviews the carrying amounts of its property, plant andequipment to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

Recoverable amount is the higher of fair value less costs to sell and value in use. Value in use is usually determined on the basis of discounted estimated future cash flows. This involves management estimates on anticipated commodity prices, market demand and supply, economic and regulatory environment, discount rates and other factors. Any subsequent changes to cash flow due to changes in the above mentioned factors could impact the carrying value of assets.

c) Deferred tax assets

Deferred tax assets are recognised only to the extent it is considered probable that those assets will be recoverable. This involves an assessment of when those deferred tax assets are likely to reverse and a judgment as to whether or not there will be sufficient taxable profits available to offset the tax assets when they do reverse. The Company reviews the carrying amount of deferred tax assets at the end of each reporting period. Any change in the estimates of future taxable income may impact the recoverability of deferred tax assets.

d) Contingencies

In the normal course of business, contingent liabilities may arise from litigation and other claims against the Company. Potential liabilities that are possible but not probable of crystallizing or are very difficult to quantify reliably are treated as contingent liabilities. Such liabilities are disclosed in the notes but are not recognized.

4.21 Segment reporting

The Board of Directors of the Company identified Textiles as primary business segment as the company mainly dealing in Textile business only

Further the board has identified two geographical segments i.e. ''Domestic'' and ''Export'' considering the political and economic environment. Type A customers, assets employed and risk parameters associated in respect of each of the geographical area.

Note: - For this Standalone Financial Results only board of Directors are responsible.

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Mar 31, 2018

1. BASIS OF PRESENTATION

The Financial statements are prepared in accordance with the historical cost conventions in accordance with the generally accepted accounting principles in India and comply with all material aspects of the mandatory Accounting standards issued by the institute of Chartered Accountants of India (ICAI) and the relevant provision of the Companies Act, 2013.

All transactions are generally accounted on accrual as they are earned or incurred.

Accounting policies not specifically referred to other wise are consistent and in consonance with generally accepted accounting principals.

2. FIXED ASSETS

(a) Fixed assets are stated at their original cost of acquisition I construction.

(b) Expenditure including cost of financing incurred in the cost of construction, installation and commissioning of project, property, plant or equipment till the commencement of the commercial production are capitalized and included in the cost of respective fixed assets

3. INVESTMENT

No Investments are made by the Company.

4 DEPRECIATION

During the year the company has charged Depreciation on SLM Double Shift Basis.

5. INVENTORIES:

Inventories are valued as under;

Raw material - At Cost

Work in Process - At cost inclusive of allocable overheads

Finished Goods -At lower of cost or net realizable value

Stores/ spares, packing material etc. -At cost

6. RETIREMENT BENEFITS

a) Provident Fund and Employees State Insurance

Contributions to defined contribution schemes such as Provident Fund and Employees State Insurance are charged to the profit and loss account as accrued during the year. In accordance with AS-15 issued by Institute of Chartered Accountants of India, the liability for gratuity has been actually determined. The company continues to account for such liability on accrual basis

Total contribution made by the employer to the PF fund during the year is Rs. 31.39 Lakhs.

Total contribution made by the employer to the ESIC fund during the year is Rs 17.86Lakhs

b) Gratuity

The Company makes payment to vested employees as per provisions of Payment of Gratuity Act. 1972. The provision of Gratuity liability as on the balance sheet date is done on actuarial valuation basis for qualifying employees, however the same is not funded to any trust or scheme.

The present value of the defined benefits obligation and the related current service cost is measured using the Projected Unit Credit actuarial Method at the end of balance sheet date by Actuary

The Present value of the obligation as recognized in the Balance Sheet:-

7. METHOD OF ACCOUNTING

The Company follows the accrual system of accounting.

8. MISCELLANEOUS EXPENSES

The Preliminary expenses will be written of fully form the year of commencement of commercial production

9. TREATMENT OF CONTINGENT LIABILITIES

Contingent liabilities not provided for are disclosed by way of notes to the accounts.

10 BORROWING COSTS

Borrowing costs that are attributable to acquisitions or construction of qualifying assets are capitalized as part of the cost of such assets, A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charges to revenue,

11 DEFERRED TAX

Provision for current tax is made after taking in to consideration benefits admissible under the Provision of the Income Tax Act, 1961 Deferred tax resulting form ‘timing difference” between book And taxable profit is accounted for using the tax rates and laws that have been enacted or substantively Enacted as on the balance sheet date. The Deferred tax asset is recognized and carreid forward only to The extent there is a reasonable certainty that assets will be realizable in future.

12 AS 17 SEGMENT REPORTING

(a) Primary Segment Reporting (By Business Segments)

The Company is engaged in textiles. Hence there is no separate business Segments

(b) Secondary Segment reporting on the basis of geographical segment is as below: