Notes to Accounts of Bhilwara Technical Textiles Ltd.

Mar 31, 2025

2.10. Provisions, Contingent Liabilities & Contingent
Assets

Provisions are recognized for present obligation (legal
or constructive) of certain timing or amount arising as
a result of past event where a reliable estimate can be
made and it is probable that an outflow of resources
embodying economic benefits will be required to
settle the obligation.

When it is not probable that an outflow of resources
embodying economic benefits will be required or the
amount cannot be estimated reliably the obligation is
disclosed as a contingent liability unless the possibility
of outflow of resources embodying economic benefit
is remote.

Possible obligations, whose existence will only be
confirmed by the occurrence or non-occurrence of
one or more uncertain future events, not wholly with
in the control of entity are also disclosed as contingent
liabilities.

Contingent liabilities are not recognized but are disclosed
in notes.

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

2.11. Operating Segment

An operating segment is a component of an entity
whose operating results are regularly reviewed by
the entity''s chief operating decision maker to make
decisions about resource allocation and assess its
performance. The Company has identified the chief
operating decision maker as its Director in Charge.

2.12. Earnings per share

Basic earnings per share are calculated by dividing
the net profit or loss for the period attributable to the
equity shareholders by the weighted average number
of equity shares outstanding during the period. The
weighted average number of equity shares outstanding
during the period and for all periods presented is
adjusted for events, such as bonus issue, bonus
element in a rights issue and shares split that have
changed the number of equity shares outstanding,
without a corresponding change in resources. For
the purpose of calculating Diluted Earnings per share,
the net profit or loss for the period attributable to the
equity shareholders and the weighted average number
of shares outstanding during the period is adjusted for
the effects of all dilutive potential equity shares.

2.13. Cash flow statement

Cash flows are reported using the indirect method,
whereby profit for the year is adjusted for the effects
of transactions of a non-cash nature, any deferrals or
accruals of past or future operating cash receipts or
payments and item of income or expenses associated
with investing or financing cash flows. The cash flows
from operating, investing and financing activities of the

Company are segregated. The Company considers all
highly liquid investments that are readily convertible
to known amounts of cash to be cash equivalents.

2.14. Non-Current assets (or disposal groups) held for
sale and discontinued operations

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

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

Non-current assets (including those that are part of
a disposal group) are not depreciated or amortised
while they are classified as held for sale. Interest and
other expenses attributable to the liabilities of a
disposal group classified as held for sale continue to
be recognised.

Non-current assets classified as held for sale and the
assets of a disposal group classified as held for sale are
presented separately from the other assets in the balance
sheet. The liabilities of a disposal group classified as held
for sale are presented separately from other liabilities in
the balance sheet.

A discontinued operation is a component of the entity
that has been disposed of or is classified as held for
sale and that represents a separate major line of
business or geographical area of operations, is part
of a single co-ordinated plan to dispose of such a line
of business or area of operations, or is a subsidiary
acquired exclusively with a view to resale. The results

of discontinued operations are presented separately in
the statement of profit and loss.

2.15.Fair Value Measurement

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

Fair value is the price that would be received to sell
an asset or paid to transfer a liability in an orderly
transaction between market participants at the
measurement date. The fair value measurement is
based on the presumption that the transaction to sell
the asset or transfer the liability takes place either:

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

• In the absence of a principal market, in 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
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 recognized in the
financial statements on a recurring basis, the Company
determines whether transfers have occurred between
levels in the hierarchy by reassessing categorization
(based on the lowest level input that is significant to
the fair value measurement as a whole) at the end of
each reporting period.

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 notes.

2.16. Cash and cash equivalents

The Company considers all highly liquid financial
instruments, which are readily convertible into known
amounts of cash that are subject to an insignificant risk
of change in value and having original maturities of
three months or less from the date of purchase, to be
cash equivalents. Cash and cash equivalents consist
of balances with banks which are unrestricted for
withdrawal and usage.

For the purposes of the presentation of cash flow
statement, cash and cash equivalents include
cash on hand, in banks and demand deposits with
banks, net of outstanding bank overdrafts that are
repayable on demand, book overdraft as they being
considered as integral part of the Company''s cash
management system.

2.17. Financial Instruments

Financial assets and liabilities are recognised when
the Company becomes a party to the contractual
provisions of the instrument. Financial assets and
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 and loss) are added to or deducted from
the fair value measured on initial recognition of financial

asset or financial liability. Transaction costs directly
attributable to the acquisition of financial assets or
financial liabilities at fair value through profit and loss
(FVTPL) are recognised immediately in the statement of
profit and loss.

Financial assets

For purposes of subsequent measurement, financial
assets are classified in below mentioned categories:

• Financial assets carried at amortised cost;

• Financial asset at fair value through other
comprehensive income;

• Financial asset at fair value through profit and loss

Financial assets at amortised cost

Financial assets are subsequently measured at
amortised cost using the effective interest method if
these financial assets are held within a business whose
objective is to hold these assets 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.

Financial assets at fair value through other
comprehensive income

Financial assets are measured at fair value through
other comprehensive income (OCI) if these financial
assets are held within a business model whose
objective is achieved by both selling financial assets
and collecting contractual cash flows, 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 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 the statement of profit and loss on
disposal of the investments. So far, the Company has
not elected to present subsequent changes in fair value
of any investment in OCI.

Financial assets at fair value through profit and
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 and 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 and loss are
immediately recognised in profit and loss.

Impairment of financial assets (other than at fair
value)

The Company measures the loss allowance for a
financial instrument at an amount equal to the lifetime
expected credit losses if the credit risk on that financial
instrument has increased significantly since initial
recognition. If the credit risk on a financial instrument
has not increased significantly since initial recognition,
the Company measures the loss allowance for that
financial instrument at an amount equal to 12-month
expected credit losses.

However, for trade receivables, the Company measures
the loss allowance at an amount equal to lifetime
expected credit losses. In cases where the amounts
are expected to be realised up to one year from the
date of the invoice, loss for the time value of money
is not recognised, since the same is not considered to
be material.

De-recognition of financial asset

The Company derecognized a financial asset when
the contractual right to the cash flow from the asset
expires or when it transfers the financial asset and
substantially all risk and reward of ownership of the
asset to other party. If the Company neither transfer
nor retain substantially all the risk and reward of

ownership and continue to control the transferred
asset, the Company recognizes its retained interest
in the asset and an associate liability for an amount it
has to pay. If the Company retain substantially all the
risks and reward of ownership of a transferred financial
asset, the company continue to recognize the financial
asset and also a collateralized borrowing for the
proceeds received.

Financial liabilities

All financial liabilities are subsequently measured at
amortised cost using the effective interest method.

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 the entity after deducting
all of its liabilities. Equity instruments issued by the
Company are recognised at the proceeds received, net
of direct issue costs.

Loans and borrowings

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

Trade and other Payables

These amounts represent liabilities for goods & services
provided to the Company prior to the end of the
financial year which are unpaid. These are recognised
initially at fair value and subsequently measured at
amortised cost using effective interest method. Where

the maturity period is within one year from balance
sheet date, the carrying amount approximate the fair
value at initial recognition due to short maturity of
these instruments.

De-recognition of financial liabilities

The Company derecognises financial liabilities when, and
only when, the Company''s obligations are discharged,
cancelled or have expired. The difference between the
carrying amount of the financial liability derecognised
and the consideration paid and payable is recognised
in the statement of profit and loss.

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.

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.

Impairment of Non-Financial Assets

Intangible assets, property, plant and equipment
measured at cost and other non-financial assets are
evaluated for recoverability whenever events or
changes in circumstances indicate that their carrying
amounts may not be recoverable. For the purpose of
impairment testing, the recoverable amount (i.e. the
higher of the fair value less cost to sell and the value-
in-use) is determined on an individual asset basis
unless the asset does not generate cash flows that
are largely independent of those from other assets.
In such cases, the recoverable amount is determined
for the Cash Generating Unit (CGU) to which the asset
belongs. If such assets are considered to be impaired,
the impairment to be recognized in the statement of
profit and loss is measured by the amount by which
the carrying value of the assets exceeds the estimated
recoverable amount of the asset. An impairment loss
is reversed in the statement of profit and loss if there
has been a change in the estimates used to determine
the recoverable amount. The carrying amount of the
asset is increased to its revised recoverable amount,
provided that this amount does not exceed the
carrying amount that would have been determined
(net of any accumulated amortization or depreciation)
had no impairment loss been recognized for the asset
in prior years.

2.18. Impairment of Non-Financial assets

The non-financial assets, other than biological assets,
inventories and deferred tax asset are reviewed at
each reporting date to determine whether there is
any indication of impairment. If any such indications
exist, then the asset''s recoverable amount is estimated.
Goodwill is tested annually for impairment.

For impairment testing, assets that do not generate
independent cash inflows are grouped together into
cash generating units(CGUs). Each CGU represents the
smallest group of assets that generate cash inflows that
are largely independent of the cash inflows of other
assets or CGUs.

Goodwill arising from the business combination is
allocated to CGUs or groups of CGUs that are expected
to benefits from the synergies of the combination.

The recoverable amount of the CGU (or an individual
asset) is the higher of its value in use and its fair value
less cost to sell. Value in used is based on the estimated
future cash flows, discounted to their present value
using a pre-tax discount rate that reflects current market
assessment of the time value of money and the risks
specifics to the CGU (or the asset).

The corporate assets (e.g central office building for
providing support to various CGUs) do not generate
independent cash inflows. To determine impairment
of a corporate asset, recoverable amount is determined
for the CGUs to which the corporate asset belongs.

The impairment loss is recognized if the carrying amount
of the asset or the CGU exceeds its estimated recoverable
amount. Impairment losses are recognized in the
statement of profit & loss. Impairment loss recognized
in respect of CGU is allocated first to reduce the carrying
amount of any goodwill allocated to the CGU, and then
to reduce the carrying amount of the CGU (or group of
CGUs) on a pro rata basis.

An impairment loss in respect of goodwill is not
subsequently reversed. In respect of other assets
for which impairment loss has been recognized in
prior periods, the company reviews at each reporting
date whether there is any indication that the loss has
decreased or no longer exists. An impairment loss is
reversed if there has been a change in the estimates used
to determine the recoverable amount. Such a reversal is
made only to the extent that the asset''s carrying amount
does not exceed the carrying amount that would have
been determined, net of depreciation or amortization,
if no impairment loss had been recognized.

2.19. Use of estimates

The preparation of the financial statement in
conformity with Ind AS requires the Management to
make estimates and assumptions considered in the
reported amounts of assets and liabilities (including
contingent liabilities) and the reported income and
expenses during the year. The Management believes
that the estimates used in preparation of the financial
statements are prudent and reasonable. Future results
could differ due to these estimates and the differences
between the actual results and the estimates are
recognized in the periods in which the results are
known / materialize.

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

2.20. Critical accounting judgements and key sources of
estimation uncertainty

The Preparation of the Company''s financial statements
requires management to make judgments, estimates
and assumptions that affect the reported amounts
of revenues, expenses, assets and liabilities, and the
accompanying disclosures, and the disclosure of
contingent liabilities.

2.20.1. Critical accounting judgements in applying
accounting policies

The following are the critical judgements, apart from
those involving estimations that the Management
have made in the process of applying the Company''s
accounting policies and that have most significant
effect on the amounts recognized in the financial
statements.

Valuation of 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.

Defined benefit plans (gratuity benefits)

The cost of the defined benefit gratuity plan and other
post-employment medical benefits and the present
value of the gratuity obligation are determined using
actuarial valuations. An actuarial valuation involves
making various assumptions that may differ from
actual developments in the future. These include
the determination of the discount rate; future salary
increases and mortality rates. 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.

Fair value measurement of financial instruments

When the fair values of financial assets and financial
liabilities recorded in the balance sheet cannot be
measured based on quoted prices in active markets,
their fair value is measured using valuation techniques
including the DCF model. The inputs to these models
are taken from observable markets where possible,
but where this is not feasible, a degree of judgement
is required in establishing fair values. Judgements
include considerations of inputs such as liquidity risk,
credit risk and volatility. Changes in assumptions about
these factors could affect the reported fair value of
financial instruments. (Refer Note 2.15)

Impairment of non-financial assets

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.

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.

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 factors used in estimates may differ from actual
outcome which could lead to significant adjustment
to the amounts reported in the financial statements.

2.21.Key Source of estimation uncertainty

Key source of estimation uncertainty at the date of
the financial statements, which may cause a material
adjustment to the carrying amounts of assets and
liabilities within the next financial year, is in respect of
impairment of investments, provisions and contingent
liabilities.

The areas involving critical estimates are:

Useful lives and residual values 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
(Refer note no 2.5).

Impairment of property plant and equipment

The recoverable amount of the assets has been
determined on the basis of their value in use. For
estimating the value in use, it is necessary to project the
future cash flow of assets over its estimated useful life. If
the recoverable amount is less than its carrying amount,
the impairment loss is accounted for in statement of
profit and loss. (Refer note 2.5)

Provisions and contingencies

Provisions and liabilities are recognized in the period
when it becomes probable that there will be a future
outflow of funds resulting from past operations or
events and the amount of cash outflow can be reliably
estimated. The timing of recognition and quantification
of the liability requires the application of judgement to
existing facts and circumstances, which can be subject
to change. The carrying amounts of provisions and
liabilities are reviewed regularly and revised to take
account of changing facts and circumstances.

Note 32.3: Fair Value Hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are recognised
and measured at fair value and measured at amortised cost and for which fair values are disclosed in financial statements. To provide
an indication about the reliability of inputs used in determining fair values, the group has classified its financial instruments into three
levels prescribed under the accounting standards.

The fair values of the financial assets and liablities are recognised at the amount 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, other than in a forced or liquidation sale.

The following provides the fair value measurement hierarchy of Company asset and liabilities, for determining and disclosing the fair
value of financial instruments by valuation techniques, grouped into Level 1 to Level 3 as described below:

Level 1- Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2- Input other than quoted prices included within level 1 that are observable for the asset or liabilities, either directly ( i.e as prices)
or indirectly (i.e. derived from prices). (Net Asset value as published by the fund).

Note 32.3.2: Valuation technique used to determine Fair value

The Company maintains policies and procedures to value financial assets or financial liabilities using the best and most relevant data
available. The fair values of the financial assets and liabilities are recognised at the amount that would be received to sell an asset or
paid to transfer a liability in an orderly transaction between market participants at the measurement date.

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

1) Fair value of cash and deposits, trade receivables, trade payables, and other current financial assets and liabilities measured at
amortised cost is approximate to their carrying amounts largely due to the short-term maturities of these instruments. The fair value
of other non-current financial assets and liabilities (security deposit taken/given and advance to employees) carried at amortized
cost is approximately equal to fair value. Hence carrying value and fair value is taken same.

2) The fair values of derivatives are estimated by using pricing models, where the inputs to those models are based on readily
observable market parameters basis contractual terms, period to maturity, and market parameters such as interest rates, foreign
exchange rates, and volatility. These models do not contain a high level of subjectivity as the valuation techniques used do not
require significant judgement, and inputs thereto are readily observable from actively quoted market prices. Management has
evaluated the credit and non-performance risks associated with its derivative counterparties and believe them to be insignificant
and not warranting a credit adjustment.

3) The fair values of the quoted equity shares have been done on quoted price of stock exchange as on reporting date.

Note 32.4: Financial risk management

The Company''s principal financial liabilities, comprises of trade payables. The main purpose of these financial liabilities is to finance the
Company''s operations. The Company''s principal financial assets include loans, trade and other receivables, and cash and cash equivalents
that derive directly from its operations.

The company''s activities expose it to a variety of financial risks: currency risk, interest rate risk, credit risk and liquidity risk. The company''s
overall risk management strategy seeks to minimise adverse effects from the unpredictability of financial markets on the company''s
financial performance. The Company''s senior management is supported by a financial risk committee that advises on financial risks and
the appropriate financial risk governance framework for the Company. The financial risk committee provides assurance to the Company''s
senior management the Company''s financial risk activities are governed by appropriate policies and procedures and that financial risks
are identified, measured and managed in accordance with the Company''s policies and risk objectives. The Audit committee reviews
and agrees policies for managing each of these risks, which are summarised below.

Note 32.4.1: Credit Risk

Credit risk arises from the possibility that the counterparty will default on its contractual obligations resulting in financial loss to the
Company. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities,
including deposits with banks and financial institutions and other financial instruments.

Investments

The Company limits its exposure to credit risk by generally investing with counterparties that have a good credit rating.

Cash & Cash Equivalents

With respect to credit risk arising from financial assets which comprise of cash and cash equivalents, the Company''s risk exposure arises
from the default of the counterparty, with a maximum exposure equal to the carrying amount of these financial assets at the reporting
date. Since the counter party involved is a bank, Company considers the risks of non-performance by the counterparty as non-material.

Foreign exchange risk is the risk that the fair value of future cash flows of financial instruments will fluctuate because of changes in
foreign exchange rate.

The Company derives significant portion of its revenue in foreign currency, exposing it to fluctuations in currency movements. The
Company has laid down a foreign exchange risk policy as per which senior management team reviews and manages the foreign
exchange risks in a systematic manner, including regular monitoring of exposures, proper advice from market experts, hedging of
exposures, etc.

In management''s opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange risk because the exposure at the
end of the reporting period does not reflect the exposure during the year.

Note 32.5: Liquidity risk management

Ultimate responsibility for liquidity risk management rests with the board of directors, which has established an appropriate liquidity
risk management framework for the management of the company''s short, medium, and long-term funding and liquidity management
requirements. The company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities,
by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

Note 34: Recent Accounting Pronouncements

Ministry of Corporate Affairs("MCA") notifies new standards or amendments to the existing standards under Companies (Indian
Accounting Standards) Rules as issued from time to time. For the year ended 31^st March, 2025 MCA has not notified any new standards
or amendments to the existing standards applicable to the Company.

Note 35: Other Statutory Information

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

(ii) The Company does not have any transactions with companies struck off.

(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

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

(v) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the
understanding (whether recorded in writing or otherwise) that the Company shall:

(a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
Funding Party (Ultimate Beneficiaries) or

(b) Provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

(vi) The Company has not advanced any fund to any person(s) or entity(ies), including foreign entities with the understanding (whether
recorded in writing or otherwise) that the Company shall:

(a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
Funding Party (Ultimate Beneficiaries) or

(b) Provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

(vii) The Company has no subsidiary and joint venture downward. The company has one associate company downward.

(viii) The lender of the company has not declared company as wilful defaulter and also company has not defaulted in loan repayment
of loan to the lender.

(ix) There is no transaction which are not recorded in the books of account that has been surrendered or disclosed as income during
the year in the tax assessments under the Income Tax Act, 1961.

(x) The company has used accounting softwares for maintaining its books of account which has a feature of recording audit trail
(edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the softwares.

Note 36: Approval of Financial Statements

The Financial Statements for the period ended 31^st March, 2025 were approved by the Board of Directors and authorized for issue on
16^th May, 2025.

See Accompanying notes to the standalone financial statements 1-36

As per our report of even date attached For and on behalf of Board of Directors

For Doogar & Associates BHILWARA TECHNICAL TEXTILES LIMITED

Chartered Accountants
Firm Regn. No. 000561N

Mukesh Goyal Shekhar Agarwal Shantanu Agarwal

Partner Chairman & Managing Director and CEO Director

Membership No. 081810 DIN-00066113 DIN-02314304

Place: Noida (U.P.) Avnish Maurya

Date: 16^th May, 2025 Company Secretary & Chief Financial Officer

Membership No. A49392

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Mar 31, 2024

2.9 Provisions, Contingent Liabilities & Contingent Assets

Provisions are recognised for present obligation (legal or constructive) of certain timing or amount arising as a result of past event where a reliable estimate can be made and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation.

When it is not probable that an outflow of resources embodying economic benefits will be required or the amount cannot be estimated reliably the obligation is disclosed as a contingent liability unless the possibility of outflow of resources embodying economic benefit is remote.

Possible obligations, whose existence will only be confirmed by the occurance or nonoccurrence of one or more uncertain future events, not wholly with in the control of entity are also disclosed as contingent liabilities.

Contingent liabilities are not recognized but are disclosed in notes.

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

2.10 Operating Segment

An operating segment is a component of an entity whose operating results are regularly reviewed by the entity''s chief operating decision maker to make decisions about resource allocation and assess its performance. The Company has identified the chief operating decision maker as its Director in Charge.

2.11 Earnings per share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to the equity shareholders by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period and for all periods presented is adjusted for events, such as bonus issue, bonus element in a rights issue and shares split that have changed the number of equity shares outstanding, without a corresponding change in resources. For the purpose of calculating Diluted Earnings per share, the net profit or loss for the period

attributable to the equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

2.12 Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit for the year is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated. The Company considers all highly liquid investments that are readily convertible to known amounts of cash to be cash equivalents.

2.13 Non-Current assets (or disposal groups) held for sale and discontinued operations

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

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

Non-current assets (including those that are part of a disposal group) are not depreciated or amortised while they are classified as held for sale. Interest and other expenses attributable to the liabilities of a disposal group classified as held for sale continue to be recognised.

Non-current assets classified as held for sale and the assets of a disposal group classified as held for sale are

presented separately from the other assets in the balance sheet. The liabilities of a disposal group classified as held for sale are presented separately from other liabilities in the balance sheet.

A discontinued operation is a component of the entity that has been disposed of or is classified as held for sale and that represents a separate major line of business or geographical area of operations, is part of a single co-ordinated plan to dispose of such a line of business or area of operations, or is a subsidiary acquired exclusively with a view to resale. The results of discontinued operations are presented separately in the statement of profit and loss.

2.14 Fair Value Measurement

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

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

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

• In the absence of a principal market, in 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 reassessing 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 notes.

2.15 Cash and cash equivalents

The Company considers all highly liquid financial instruments, which are readily convertible into known amounts of cash that are subject to an insignificant risk of change in value and having original maturities of three months or less from the date of purchase, to be cash equivalents. Cash and cash equivalents consist of balances with banks which are unrestricted for withdrawal and usage.

For the purposes of the presentation of cash flow statement, cash and cash equivalents include cash on hand, in banks and demand deposits with banks, net of outstanding bank overdrafts that are repayable on

demand, book overdraft as they being considered as integral part of the Company''s cash management system.

2.16 Financial instruments

Financial assets and liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument. Financial assets and 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 and loss) are added to or deducted from the fair value measured on initial recognition of financial asset or financial liability. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit and loss (FVTPL) are recognised immediately in the statement of profit and loss.

Financial assets

For purposes of subsequent measurement, financial assets are classified in below mentioned categories:

• Financial assets carried at amortised cost

• Financial asset at fair value through other

comprehensive income

• Financial asset at fair value through profit and loss

Financial assets at amortised cost Financial assets are subsequently measured at amortised cost using the effective interest method if these financial assets are held within a business whose objective is to hold these assets 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.

Financial assets at fair value through other comprehensive income

Financial assets are measured at fair value through other comprehensive income (OCI) if these financial assets are held within a business model whose objective is achieved by both selling financial assets and collecting contractual cash flows, 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 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 the statement of profit and loss on disposal of the investments. So far, the Company has not elected to present subsequent changes in fair value of any investment in OCI.

Financial assets at fair value through profit and 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 and 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 and loss are immediately recognised in profit and loss.

Impairment of financial assets (other than at fair value)

The Company measures the loss allowance for a financial instrument at an amount equal to the lifetime expected credit losses if the credit risk on that financial instrument has increased significantly since initial recognition. If the credit risk on a financial instrument has not increased significantly since initial recognition, the Company measures the loss allowance for that financial instrument at an amount equal to 12-month expected credit losses.

However, for trade receivables, the Company measures the loss allowance at an amount equal to lifetime expected credit losses. In cases where the amounts are expected to be realised up to one year from the date of the invoice, loss for the time value of money is not recognised, since the same is not considered to be material.

Derecognition of financial assets

The Company derecognized a financial asset when the contractual right to the cash flow from the asset expires or when it transfers the financial asset and substantially all risk and reward of ownership of the asset to other party. If the Company neither transfer nor retain substantially all the risk and reward of ownership and continue to control the transferred asset, the Company recognizes its retained interest in the asset and an associate liability for an amount it has to pay. If the Company retain substantially all the risks and reward of ownership of a transferred financial asset, the company continue to recognize the financial asset and also a collateralized borrowing for the proceeds received.

Financial liabilities

All financial liabilities are subsequently measured at amortised cost using the effective interest method.

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 the entity after deducting all of its liabilities. Equity instruments issued by the Company are recognised at the proceeds received, net of direct issue costs.

Loans and borrowings

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

Trade and other Payables

These amounts represent liabilities for goods & services provided to the Company prior to the end of the financial year which are unpaid. These are recognised initially at fair value and subsequently measured at amortised cost using effective interest method. Where the maturity period is within one year from balance sheet date, the carrying amount approximate the fair value at initial recognition due to short maturity of these instruments.

Derecognition of financial liabilities

The Company derecognises financial liabilities when, and only when, the Company''s obligations are discharged, cancelled or have expired. The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable is recognised in the statement of profit and loss

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.

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.

Impairment of Non-Financial Assets

Intangible assets, property, plant and equipment measured at cost and other non-financial assets are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs. If such assets are considered to be impaired, the impairment to be recognized in the statement of profit and loss is measured by the amount by which the carrying value of the assets exceeds the estimated recoverable amount of the asset. An impairment loss is reversed in the statement of profit and loss if there has been a change in the estimates used to determine the recoverable amount. The carrying amount of the asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortization or depreciation) had no impairment loss been recognized for the asset in prior years.

2.17 Impairment of Non-Financial assets

The non-financial assets, other than biological assets, inventories and deferred tax asset are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indications exist, then the asset''s recoverable amount is estimated. Goodwill is tested annually for impairment.

For impairment testing, assets that do not generate independent cash inflows are grouped together into cash generating units(CGUs). Each CGU represents the smallest group of assets that generate cash inflows that are largely independent of the cash inflows of other assets or CGUs.

Goodwill arising from the business combination is allocated to CGUs or groups of CGUs that are expected to benefits from the synergies of the combination.

The recoverable amount of the CGU (or an individual asset) is the higher of its value in use and its fair value less cost to sell. Value in used is based on the estimated future cash flows, discounted to their present value using a pre-tax discount rate that reflects current market assessment of the time value of money and the risks specifics to the CGU (or the asset).

The corporate assets (e.g central office building for providing support to various CGUs) do not generate independent cash inflows. To determine impairment of a corporate asset, recoverable amount is determined for the CGUs to which the corporate asset belongs.

The impairment loss is recognized if the carrying amount of the asset or the CGU exceeds its estimated recoverable amount. Impairment losses are recognized in the statement of profit & loss. Impairment loss recognized in respect of CGU is allocated first to reduce the carrying amount of any goodwill allocated to the CGU, and then to reduce the carrying amount of the CGU (or group of CGUs) on a pro rata basis.

An impairment loss in respect of goodwill is not subsequently reversed. In respect of other assets for which impairment loss has been recognized in prior periods, the company reviews at each reporting date whether there is any indication that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. Such a reversal is made only to the extent that the asset''s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized.

2.18 Use of estimates

The preparation of the financial statement in conformity with Ind AS requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and current and / or future periods are affected.

2.19 Critical accounting judgements and key sources of estimation uncertainty

The preparation of the Company''s financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities.

2.19.1 Critical accounting judgements in applying accounting policies

The following are the critical judgements, apart from those involving estimations that the Management have made in the process of applying the Company''s accounting policies and that have most significant effect on the amounts recognised in the financial statements.

Valuation of 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 (Refer note 2.7).

Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the DCF model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments. (Refer Note 2.14)

Impairment of non-financial assets

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.

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.

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 factors used in estimates may differ from actual outcome which could lead to significant adjustment to the amounts reported in the financial statements.

2.20 Key Source of estimation uncertainty

Key source of estimation uncertainty at the date of the financial statements, which may cause a material adjustment to the carrying amounts of assets and liabilities within the next financial year, is in respect of

impairment of investments, provisions and contingent liabilities.

The areas involving critical estimates are:

Useful lives and residual values 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 yea rs (Refer note no 2.4).

Impairment of property plant and equipment

The recoverable amount of the assets has been determined on the basis of their value in use. For estimating the value in use, it is necessary to project the future cash flow of assets over its estimated useful life. If the recoverable amount is less than its carrying amount, the impairment loss is accounted for in statement of profit and loss. (Refer note 2.4)

Provisions and contingencies

Provisions and liabilities are recognized in the period when it becomes probable that there will be a future outflow of funds resulting from past operations or events and the amount of cash outflow can be reliably estimated. The timing of recognition and quantification of the liability requires the application of judgement to existing facts and circumstances, which can be subject to change. The carrying amounts of provisions and liabilities are reviewed regularly and revised to take account of changing facts and circumstances.

Note 15.4: Nature and purpose of Reserves:

Retained Earnings

This reserve represents undistributed accumulated earnings of the Company as on the balance sheet date.

Securities Premium Reserve

Amounts received on issue of shares in excess of the par value has been classified as securities premium. The reserve is utilised in accordance with the provisions of the companies Act, 2013.

Cash Flow Hedge Reserve

This reserve represents the cumulative effective portion of changes in fair value of derivatives that are designated as Cash Flow Hedges. It will be reclassified to statement of profit & loss or included in the carrying amount of the non-financial assets in accordance with the company''s accounting policy.

Note 31: Financial Instruments Note 31.1: Capital Management

The primary objective of the Company Capital Management is to maximise the shareholder''s value and also maintain an optimal capital structure to reduce cost of capital. In order to manage the capital structure, the Company may adjust the amount of dividend paid to shareholders, return on capital to shareholders, issue new shares or sale assets to reduce debts.

The Company monitors capital on the basis of following gearing ratio, which is net debt (net of cash and cash equivalents) divided by total equity plus net debt.

Note 31.3: Fair Value Hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are recognised and measured at fair value and measured at amortised cost and for which fair values are disclosed in financial statements. To provide an indication about the reliability of inputs used in determining fair values, the group has classified its financial instruments into three levels prescribed under the accounting standards.

The fair values of the financial assets and liablities are recognised at the amount 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, other than in a forced or liquidation sale.

The following provides the fair value measurement hierarchy of Company asset and liabilities, for determining and disclosing the fair value of financial instruments by valuation techniques, grouped into Level 1 to Level 3 as described below:

Level 1- Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2- Input other than quoted prices included within level 1 that are observable for the asset or liabilities, either directly ( i.e as prices) or indirectly (i.e. derived from prices). (Net Asset value as published by the fund).

Level 3- Inputs for the assets or liabilities that are not based on observable market data( unobservable inputs).

Note 31.3.2: Valuation technique used to determine Fair value

The Company maintains policies and procedures to value financial assets or financial liabilities using the best and most relevant data available. The fair values of the financial assets and liabilities are recognised at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

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

1) Fair value of cash and deposits, trade receivables, trade payables, and other current financial assets and liabilities measured at amortised cost is approximate to their carrying amounts largely due to the short-term maturities of these instruments. The fair value of other non-current financial assets and liabilities (security deposit taken/given and advance to employees) carried at amortized cost is approximately equal to fair value. Hence carrying value and fair value is taken same.

2) The fair values of derivatives are estimated by using pricing models, where the inputs to those models are based on readily observable market parameters basis contractual terms, period to maturity, and market parameters such as interest rates, foreign exchange rates, and volatility. These models do not contain a high level of subjectivity as the valuation techniques used do not require significant judgement, and inputs thereto are readily observable from actively quoted market prices. Management has evaluated the credit and non-performance risks associated with its derivative counterparties and believe them to be insignificant and not warranting a credit adjustment.

3) The fair values of the quoted equity shares have been done on quoted price of stock exchange as on reporting date.

Note 31.4: Financial risk management

The Company''s principal financial liabilities, comprises of trade payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets include loans, trade and other receivables, and cash and cash equivalents that derive directly from its operations.

The company''s activities expose it to a variety of financial risks: currency risk, interest rate risk, credit risk and liquidity risk. The company''s overall risk management strategy seeks to minimise adverse effects from the unpredictability of financial markets on the company''s financial performance. The Company''s senior management is supported by a financial risk committee that advises on financial risks and the appropriate financial risk governance framework for the Company. The financial risk committee provides assurance to the Company''s senior management the Company''s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives. The Audit committee reviews and agrees policies for managing each of these risks, which are summarised below.

Note 31.4.1: Credit Risk

Credit risk arises from the possibility that the couterparty will default on its contractual obligations resulting in financial loss to the Company. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions and other financial instruments.

Expected Credit Loss for Trade Receivables

There is no debtor outstanding for more than 12 months. Credit risk is managed through credit approvals, establishing credit limits, continuous monitoring of creditworthiness of customers to which the company grants credit terms in the normal course of business.

Investments

The Company limits its exposure to credit risk by generally investing with counterparties that have a good credit rating.

Cash & Cash Equivalents

With respect to credit risk arising from financial assets which comprise of cash and cash equivalents, the Company''s risk exposure arises from the default of the counterparty, with a maximum exposure equal to the carrying amount of these financial assets at the reporting date. Since the counter party involved is a bank, Company considers the risks of non-performance by the counterparty as non-material.

Foreign exchange risk is the risk that the fair value of future cash flows of financial instruments will fluctuate because of changes in foreign exchange rate.

Note 31.5: Liquidity risk management

Ultimate responsibility for liquidity risk management rests with the board of directors, which has established an appropriate liquidity risk management framework for the management of the company''s short, medium, and long-term funding and liquidity management requirements. The company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

Liquidity and interest risk tables

The following tables detail the company''s remaining contractual maturity for its financial liabilities with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the company can be required to pay. The contractual maturity is based on the earliest date on which the company may be required to pay.

Note 33: Recent Accounting Pronouncements

Ministry of Corporate Affairs("MCA") notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended 31^st March, 2024 MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

Note 34: Other Statutory Information

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

(ii) The Company does not have any transactions with companies struck off.

(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period,

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

(v) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the

understanding (whether recorded in writing or otherwise) that the Company shall:

(a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) Provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

(vi) The Company has not advanced any fund to any person(s) or entity(ies), including foreign entities with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) Provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

(vii) The Company has no subsidiary and joint venture downward. The company has one associate company downward.

(viii) The lender of the company has not declared company as wilful defaulter and also company has not defaulted in loan repayment of loan to the lender.

(ix) There is no transaction which are not recorded in the books of account that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

(x) The company has used accounting softwares for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the softwares.

Note 35: Approval of Financial Statements

The Financial Statements for the period ended 31^st March, 2024 were approved by the Board of Directors and authorized for issue on 20^th May, 2024.

In terms of our report attached

As per our report of even date For and on behalf of the Board of Directors

For Doogar & Associates BHILWARA TECHNICAL TEXTILES LIMITED

Chartered Accountants Firm Regn. No. 000561N

Mukesh Goyal Shekhar Agarwal Shantanu Agarwal

Partner Chairman & Managing Director and CEO Director

Membership No. 081810 DIN : 00066113 DIN : 02314304

Avnish Maurya

Place: Noida (U.P.) Company Secretary & Chief Financial Officer

Date: 20^th May, 2024 Membership No. A49392

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Mar 31, 2023

(i) Rights, preferences and restriction attached to equity shares

Company has only one class of equity shares having a par value of D1. Each holder of equity shares is entitled to one vote per share.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

(a) As per records of the company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents legal ownerships of shares.

(v) The Company has not allotted any fully paid up shares pursuant to contract(s) without payment being received in cash and neither has allotted any fully paid up shares by way of bonus shares nor has bought back any class of shares during the period of five years immediately preceding the balance sheet date.

Note 15.4: Nature and purpose of Reserves:

Retained Earnings

This reserve represents undistributed accumulated earnings of the Company as on the balance sheet date.

Securities Premium reserve

Amounts received on issue of shares in excess of the par value has been classified as securities premium. The reserve is utilised in accordance with the provisions of the companies Act, 2013.

Cash flow hedge reserve

This reserve represents the cumulative effective portion of changes in fair value of derivatives that are designated as Cash Flow Hedges. It will be reclassified to statement of profit & loss or included in the carrying amount of the non-financial assets in accordance with the company''s accounting policy.

Note 30: Segment Reporting

The company''s main objects envisage carrying on business in various Textile Products. Currently, the Company is engaged in the business of trading of yarns. In view of the current operation and according to the management the company constitute a single segment and accordingly there are no reportable segments in accordance with the requirement of Indian Accounting Standard (Ind AS) 108 on Operating Segment Reporting notified under the Companies (Indian Accounting Standard) Rules, 2015.

Note 32: Financial instruments Note 32.1: Capital management

The primary objective of the companies'' capital management is to maximise the shareholders'' value and also maintain an optimal capital structure to reduce cost of capital. In order to manage the capital structure, the company may adjust the amount of dividend paid to shareholders, return oncapital to shareholders, issue new shares or sale assets to reduce debts. The Company monitors capital on the basis of following gearing ratio, whch is net debt divided by total capital plus debt.

The Company is not subject to any externally imposed capital requirements.

Note 32.4: Valuation technique used to determine Fair value

The Company maintains policies and procedures to value financial assets or financial liabilities using the best and most relevant data available. The fair values of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

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

1) Fair value of cash and deposits, trade receivables, trade payables, and other current financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments. The fair value of other non-current financial assets and liabilities (security deposit taken/given and advance to employees) carried at amortized cost is approximately equal to fair value. Hence carrying value and fair value is taken same.

Note 32.3: Fair value Hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are recognised and measured at fair value and measured at amortised cost and for which fair values are disclosed in financial statements. To provide an indication about the reliability of inputs used in determining fair values, the group has classified its financial instruments into three levels prescribed under the accounting standards.

Level 1- Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2- Input other than quoted prices included within level 1 that are observable for the asset or liabilities, either directly ( i.e as prices) or indirectly (i.e. derived from prices). (Net Asset value as published by the fund).

Level 3- Inputs for the assets or liabilities that are not based on observable market data( unobservable inputs).

2) Long-term fixed-rate and variable-rate receivables / borrowings are evaluated by the Company based on parameters such as interest rates, specific country risk factors, credit risk and other risk characteristics. Fair value of variable interest rate borrowings approximates their carrying values. For fixed interest rate borrowing fair value is determined by using the discounted cash flow (DCF) method using discount rate that reflects the issuer''s borrowings rate. Risk of non-performance for the company is considered to be insignificant in valuation.

3) The fair values of derivatives are estimated by using pricing models, where the inputs to those models are based on readily observable market parameters basis contractual terms, period to maturity, and market parameters such as interest rates, foreign exchange rates, and volatility. These models do not contain a high level of subjectivity as the valuation techniques used do not require significant judgement, and inputs thereto are readily observable from actively quoted market prices. Management has evaluated the credit and non-performance risks associated with its derivative counterparties and believe them to be insignificant and not warranting a credit adjustment.

Note 32.5: Financial risk management objectives and policies

The Company''s principal financial liabilities, comprises of trade payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets include loans, trade and other receivables, and cash and cash equivalents that derive directly from its operations.

The company''s activities expose it to a variety of financial risks: currency risk, interest rate risk credit risk and liquidity risk. The company''s overall risk management strategy seeks to minimise adverse effects from the unpredictability of financial markets on the company''s financial performance. The Company''s senior management is supported by a financial risk committee that advises on financial risks and the appropriate financial risk governance framework for the Company. The financial risk committee provides assurance to the Company''s senior management the Company''s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives The Audit committee reviews and agrees policies for managing each of these risks, which are summarised below.

Note 32.5.1: Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions and other financial instruments.

Expected Credit Loss for trade receivables

There is no debtor outstanding for more than 12 months. Credit risk is managed through credit approvals, establishing credit limits, continuous monitoring of creditworthiness of customers to which the company grants credit terms in the normal course of business. The Company also assesses the financial reliability of customers taking into account the financial condition, current economic trends and historical bad debts and ageing of accounts receivables.

In management''s opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange risk because the exposure at the end of the reporting period does not reflect the exposure during the year.

Investments

The Company limits its exposure to credit risk by generally investing with counterparties that have a goodcredit rating.

Cash & cash equivalents

With respect to credit risk arising from financial assets which comprise of cash and cash equivalents, the Company s risk exposure arises from the default of the counterparty, with a maximum exposure equal to the carrying amount of these financial assets at the reporting date. Since the counter party involved is a bank, Company considers the risks of non-performance by the counterparty as non-material.

Foreign exchange risk is the risk that the fair value of future cash flows of financial instruments will fluctuate because of changes in foreign exchange rate.

The Company derives significant portion of its revenue in foreign currency, exposing it to fluctuations in currency movements. The Company has laid down a foreign exchange risk policy as per which senior management team reviews and manages the foreign exchange risks in a systematic manner, including regular monitoring of exposures, proper advice from market experts, hedging of exposures, etc.

Note 32.6: Liquidity risk management

Ultimate responsibility for liquidity risk management rests with the board of directors, which has established an appropriate liquidity risk management framework for the management of the company''s short, medium, and long-term funding and liquidity management requirements. The company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

Liquidity and interest risk tables

The following tables detail the company''s remaining contractual maturity for its financial liabilities with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the company can be required to pay. The contractual maturity is based on the earliest date on which the company may be required to pay.

Note 35: Recent Accounting Pronouncements

Ministry of Corporate Affairs has notified amendments to Ind AS on 31^st March 2023 effective for annual reporting periods beginning on or after 1 April 2023. Amendments relate to:

Ind AS 1 - Presentation of Financial Statements

Disclosure of Accounting Policies, amended paragraphs 7, 10, 114, 117 and 122, added paragraphs 117A-117E and deleted paragraphs 118, 119 and 121. The amendments to Ind AS 1 are applicable for annual reporting periods beginning on or after 1 April 2023.The amendment seeks to replace significant accounting policies with material accounting policy information and provides guidance on material accounting policy information. The amendment requires complete review of existing disclosure of accounting policies and may involve redrafting, removing some of the accounting policies now being disclosed or adding new accounting policy disclosures. The company is reviewing its accounting policy disclosure to change the same as per the amendments.

Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors

Definition of Accounting Estimates, amended paragraphs 5, 32, 34, 38 and 48 and added paragraphs 32A, 32B and 34A. These amendments are applicable for annual reporting periods beginning on or after 1 April 2023. The amendment replaces the definition of changes in accounting estimates with a new definition of accounting estimates and provides guidance on that definition, what are regarded as changes in accounting estimates and how to apply changes in accounting estimates. The amendments shall be applied to changes in accounting estimates and changes in accounting policies that occur on or after 1 April 2023. Therefore, the amendments have no impact on the financial position, financial performance or the cash flows of the entity in the current and previous year.

Ind AS 12 - Income Taxes

Deferred Tax related to Assets and Liabilities arising from a Single Transaction, amended paragraphs 15, 22 and 24 and added paragraph 22A. The amendment clarifies that in case, where at the time of initial recognition, equal amount of taxable and deductible temporary differences arise, the initial recognition exemption does not apply and the company shall recognise deferred tax liability and deferred tax asset on gross basis on that date of initial recognition depending on the applicable tax law. This happens typically when a lease liability and right-of-use asset is recognised initially or when decommissioning obligations are initially recognised and the same is added to the cost of the item of property, plant and equipment. If the application of this requirement results in unequal amount of deferred tax asset and deferred tax liability, the difference shall be recognised in profit or loss. These amendments are to be applied for annual reporting periods beginning on or after 1 April 2023 to transactions that occur on or after the beginning of the 1 April 2022. The amendment also requires deferred tax assets and deferred tax liabilities to be recognised on 1 April 2022 based on the carrying amounts of the lease liability and right-of-use asset as on 1 April 2022 and recognise any difference in opening balance of retained earnings or another component of equity, where appropriate, if the company has applied the initial recognition exemption requirements earlier or had recognised deferred tax assets and deferred tax liabilities on net basis. The same is also required for decommissioning obligations recognised initially and added to the cost of the item of property, plant and equipment. As the company has recognised deferred tax assets and deferred tax liabilities on gross basis on lease liability and right-of use assets, the amendment has no impact of the financial statements. Further, the requirements relating to decommissioning obligations are not applicable to the company.

Rest of the Amendments to Ind AS 101, Ind AS 103, Ind AS 107, Ind AS 109 and Ind AS 34 are consequential and clerical in nature having no impact on the financial statements of the company.

Note 36: Other Statutory Information

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

(ii) The Company does not have any transactions with companies struck off.

(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period,

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

(v) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) Provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

(vI) The Company has not advanced any fund to any person(s) or entity(ies), including foreign entities with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) Provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

(vii) The Company has no subsidiary and joint venture downward. The company has one associate company downward.

(viii) The lender of the company has not declared company as wilful defaulter and also company has not defaulted in loan repayment of loan to the lender.

Note 37: Approval of financial statements

The Financial statements for the Year ended 31^st March 2023 were approved by the Board of Directors and authorized for issue on 16^th May 2023.

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Mar 31, 2018

Notes to the reconciliation

1 Under Previous GAAP, there was no concept of other comprehensive income. Under Ind AS, specified items of income, expenses, gains, or losses ae required to be presented in other comprehensive income.

2. Previous year figures have been regrouped/restated wherever considered necessary.

3. Approval of financial statements

The Financial statements for the year ended 31^st March 2018 were approved by the board of directors and authorized for issue on 25th May 2018

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Mar 31, 2016

b) Terms/rights attached to equity shares

Company has only one class of equity shares having a par value of '' 1/-. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed, if any, by the Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

As per records of the company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares

d) The Company has not allotted any fully paid up shares pursuant to contract(s) without payment being received in cash nor has allotted any fully paid up shares by way of bonus shares nor has bought back any class of shares during the period of five years immediately preceding the balance sheet date.

Based on the information available with the Company, no supplier / service provider has informed of having filed any memorandum with the notified authority under The Micro, Small, and Medium Enterprise Development Act, 2006 (“the Act”), claiming their status as a Micro or Small Enterprise. This information has been relied upon by the auditors. Consequently, as of now, it is neither possible for the Company to ascertain whether payment to such enterprises has been made within 45 days from date of acceptance of supply of goods or services rendered by a supplier nor to give the relevant disclosures as required under the Act.

The company does not have any potential equity options.

1 Related party transactions

Following information regarding related parties has been determined on the basis of criteria specified in AS-18 “Related Party Disclosures”

a) Related parties with whom transactions have taken place

i) Associate Companies - BMD Private Limited

2 The company''s main objects envisage carrying on business in various textile products. Current operations, according to the management, constitute a single segment and accordingly the disclosure requirements as per AS-17 ''Segment Reporting'' are not applicable.

3 Previous period''s figures have been regrouped and recast wherever considered necessary.

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Mar 31, 2015

A) Terms/rights attached to equity shares

Company has only one class of equity shares having a par value of Rs.1/-. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed, if any, by the Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

As per records of the company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares

B) The Company has not allotted any fully paid up shares by way of bonus shares nor has bought back any class of shares during the period of five years immediately preceding the balance sheet date. Aggregate number of shares issued for consideration other than cash during the period of five years immediately preceding the reporting date are as follows:

Based on the information available with the Company, no supplier / service provider has informed of having filed any memorandum with the notified authority under The Micro, Small, and Medium Enterprise Development Act, 2006 ("the Act"), claiming their status as a Micro or Small Enterprise. This information has been relied upon by the auditors. Consequently, as of now, it is neither possible for the Company to ascertain whether payment to such enterprises has been made within 45 days from date of acceptance of supply of goods or services rendered by a supplier nor to give the relevant disclosures as required under the Act.

2.1.1 The company's main objects envisage carrying on business in various textile products. Current operations, according to the management, constitute a single segment and accordingly the disclosure requirements as per AS-17 issued under the Companies (Accounting Standards) Rules, 2006 are not applicable.

2.1.2 Previous period's figures have been regrouped and recast wherever considered necessary.

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Mar 31, 2014

1.1.1 Related party transactions

Following information regarding related parties has been determined on the basis of criteria specified in AS-18 "Related Party Disclosures"

a) Related parties with whom transactions have taken place

i) Associate Companies - BMD Private Limited

b) Transactions with Related Parties

1.1.2 The company''s main objects envisage carrying on business in various Textile Products. Current operations, according to the management, constitute a single segment and accordingly the Disclosure Requirements as per AS-17 issued under the Companies (Accounting Standards) Rules, 2006 are not applicable.

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Mar 31, 2013

1. Basis of preparation

The Financial Statements of the Company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The Financial Statements have been prepared to comply in all material respects with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The Financial Statements have been prepared on an accrual basis and under the historical cost convention. The accounting policies adopted in the preparation of Financial Statements are consistent with those of previous year.

2.1.1 Related Party Transactions

Following information regarding related parties has been determined on the basis of criteria specified in AS-18 "Related Party Disclosures"

a) Related Parties with whom transactions have taken place

i) Associate Companies

- BMD Private Limited

2.1.2 The Company''s main objects envisage carrying on business in various textile products. Current operations, according to the management, constitute a single segment and accordingly the disclosure requirements as per AS-17 issued under the Companies (Accounting Standards) Rules, 2006 are not applicable.

2.1.3 Previous period''s figures have been regrouped and recast wherever considered necessary.

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Mar 31, 2012

1. Basis of Preparation

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The financial statements have been prepared to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year, except for the change in accounting policy explained below.

a) Terms/rights attached to Equity Shares

Company has only one class of equity shares having a par value of Rs. 1/-. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed, if any, by the Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

As per records of the Company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.

b) The Company has not allotted any fully paid-up shares by way of bonus shares nor has bought back any class of shares during the period of five years immediately preceding the Balance Sheet date. Aggregate number of shares issued for consideration other than cash during the period of five years immediately preceding the reporting date are as follows:

Based on the information available with the Company, no supplier / service provider has informed of having filed any memorandum with the notified authority under The Micro, Small and Medium Enterprise Development Act, 2006 ("the Act"), claiming their status as a Micro or Small Enterprise. This information has been relied upon by the auditors. Consequently, as of now, it is neither possible for the Company to ascertain whether payment to such enterprises has been made within 45 days from date of acceptance of supply of goods or services rendered by a supplier nor to give the relevant disclosures as required under the Act.

The Company does not have any potential equity options.

2.1.1 Related Party Transactions

Following information regarding related parties has been determined on the basis of criteria specified in AS-18 "Related Party Disclosures

a) Related Parties with whom Transactions have taken place

i) Associate Companies

- BMD Private Limited

2.1.2 The Company's main objects envisage carrying on business in various textile products. Current operations, according to the management, constitute a single segment and accordingly the disclosure requirements as per AS-17 issued under the Companies (Accounting Standards) Rules, 2006 are not applicable.

2.1.3 Till the year ended the 31st March 2011, the Company was using pre-revised Schedule VI to the Companies Act 1956, for preparation and presentation of its financial statements. During the year ended the 31st March 2012, the revised Schedule VI notified under the Companies Act 1956, has become applicable to the Company. The Company has reclassified previous year figures to conform to this year's classification.

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Mar 31, 2010

1. Based on the information available with the Company, no supplier / service provider has informed / confirmed of having filed any memorandum with the notified authority under The Micro, Small, and Medium Enterprise Development Act, 2006 ("the Act"), claiming their status as a Micro or Small Enterprise. This information has been relied upon by the auditors. Consequently, as of now, it is neither possible for the Company to ascertain whether payment to such enterprises has been made within 45 days from date of acceptance of supply of goods or services rendered by a supplier nor to give the relevant disclosures as required under the Act.

2. There were no deffered tax liabilties / assets to be recognised as at end of the year.

3. The Companys main objects envisage carrying on business in various textile products. Current operations, according to the management, constitute a single segment and accordingly the disclosure requirements as per AS-17 issued under the Companies (Accounting Standards) Rules, 2006 are not applicable.

4. Related party transactions

Following information regarding related parties has been determined on the basis of criteria specified in AS-18 "Related Party Disclosures" a) Name of related parties and nature of relationship i) Key Management Personnel

Mr. Shekhar Agarwal, Managing Director ii) Relatives of Key Management Personnel

Mrs. Shashi Agarwal

Mr. Shantanu Agarwal

Miss. Shuchi Agarwal

Shekhar Agarwal (HUF) iii) Associate Companies

BMD Private Limited (BMD) iv) Enterprises over which persons described in (i) above are able to exercise significant influence

RSWM Limited (RSWM)

Essay Marketing Company Ltd

Jyoti Knits (P) Ltd

Agarwal Finestate (P) Ltd

5 Earnings per share ,

Basic earning per share is computed by dividing the net profit or loss for the year available to equity shareholders by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the net profit or loss for the year by the weighted average number of equity shares in issue, adjusted for the effect of all dilutive potential equity shares that were outstanding during the year. Dilutive potential equity shares are weighted for the period they were outstanding and are deemed converted as of beginning of the year, unless they have been issued at a later date.

6. There is no applicable information pursuant to Paragraphs 3 & 4 of Part II of Schedule VI td the Companies Act, 1956.

7. Previous year figures have been regrouped and recast wherever considered necessary.