Notes to Accounts of Vivekanand Cotspin Ltd.

p Provisions, Contingent liabilities and Contingent assets

A provision is recognised when the Company has a present obligation as a result of past event and it is probable that an outflow of resources will be required
to settle the obligation, in respect of which reliable estimate can be made. Provisions (excluding retirement benefits and compensated absences) are not
discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at
each balance sheet date and adjusted to reflect the current best estimates. Contingent liabilities are not recognised in the financial statements. A contingent
asset is neither recognised nor disclosed in the financial statements.

1. ''Secured Term Loans from Bonks" represents the non-current portion of long-term borrowings. The corresponding current maturities of these loans have been classified under
"Short-Term Borrowings."

2. The Secured term loan is Secured by way of:

A. Hypothecation of solar PV ground mounted power plant for 4.00 MWP. - Primary Security

B. Equitable mortgage of immovable properties R S No 30, R S No 29. R S No 25/1 lAll the properties in the name of Ranjanbcn Bhanibhoi Patel and Kapilobcn Vishnabhai
Patel).

C. Equitable mortgage of factory land and building situated at Revenue survey no 181/1 (New R S No 577). 182/1 Rongpurda, Taluka: Kadi, Dist: Mehsana, in the name of M/s
Avodh Cotton Industries and leased to M/s Vivekanand Cotspin Ltd.

D. Equitable mortgage of factory land and building situated at Revenue survey no 187/1 (New R S No 89S). At: Rongpurda, Taluka: Kadi, Dist: Mehsana, in the name of
Bharatbhai Patel and Vishnubhai Patel and leased to M/s Vivekanand Cotspin Ltd.

E. Personal guarantee of all the directors 8i promoters of the company

General Description of the Plan

The Company''s gratuity scheme is a defined benefit plan governed by the Payment of Crotuity Act, 1972 (or the Company''s own rules, if higher),
Employees become eligible after five years of continuous service (with immediate vesting upon death or disability). The normal retirement age under the
plan is 60 years; employees older than 60 at the valuation date ore treated as retired. "Salary" for benefit purposes comprises the last drawn basic
salary plus dearness allowance. The maximum gratuity payable to any employee is capped at T20,00,000. There is no employee contribution; the
Company funds 100% of the octuarially determined obligation. The Board of Directors oversees plan governance ond appoints a qualified actuary to
measure the liability in accordance with 4S IS - Employee Benefits. Actuarial gains and losses are recognized in Other Comprehensive Income. The
present value of the defined benefit obligation is classified as a long-term liability, with the portion due within 12 months shown under current liabilities.

Reasons for Variances

The Company was converted from LLP to Private Limited on 05 August 2024 and subsequently to a Public Limited Company during FY 2025-26. Accordingly, the previous year figures (FY
2024-25) represent the period from 05 August 2024 to 31 March 2025 and are not strictly comparable with the current year,

1. Debt Equity ratio has been reduced during the year, as the company has repaid loans during the year leading to reduction In debts of the company . and also the company has done
right issued leading to increase in equity of the company

2. Trade Payable turnover ration has increased during the year, as the purchases of the company has significantly increased compared to previous year

3. Net capital turnover ratio has increased significantly because turnover is doubled when compared with previous year
4 Return on capital employed has increased due to increase in the profits of the company

37 Regrouping

Previous year figures have been regrouped as and where necessary to make the financials comparable with current year.

38 Other Additional Disclosures

2 The Company has Bank Guarantees issued in favour of UGVCL. GETCO and other parties omountmg to 11.50 crore.

2. The Company holds on Advance Licence under which it is permitted to import goods at concessional customs duty and other applicable charges, subject to fulfillment of specified
export obligations. The unfulfilled export obligation, representing the portion of duty saved, amounted to 13,46.63,323 as of 31 March 2026 (Previous year: 14,24,78.162).