Notes to Accounts of Cedaar Textile Ltd.

Mar 31, 2025

xii. Provisions, Contingent Liability and Contingent Asset Provisions

The Company creates a provision when there is present obligation as a result of a past event that
probably requires an outflow of resources and a reliable estimate can be made of the amount of
obligation.

Contingent liabilities

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation
that probably will not require an outflow of resources or where a reliable estimate of the obligation
cannot be made.

Contingent assets

Contingent assets are neither recorded nor disclosed in the financial statements.

xiii. Earnings Per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to
equity shareholders by the weighted average number of equity shares outstanding during the period.
The weighted average numbers of equity shares are adjusted for events such as bonus issue, bonus
element in the rights issue, share split and reverse share split (consolidation of shares) that have changed
the number of equity shares outstanding, without corresponding change in resources.

For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable
to equity shareholders and the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.

Note

(a) During the financial year ended 31st March 2025, the Company converted an unsecured loan of ^ 2,840.04
Lakhs from directors into 20,28,600 equity shares of ^ 10 each, issued at a premium of ^ 130 per share, as
per applicable provisions of the Companies Act, 2013.

(b) During the financial year 2023-24, the Company issued 72,50,000 bonus shares to fully paid-up equity
shareholders in the ratio of 29:1 (i.e., 29 equity shares for every 1 equity share held), by capitalizing
reserves.

b) Rights, preferences and restrictions attached to equity shares

The Company has one class of equity shares having a par value of Rs. 10 per Share (As at 31st March 2025
Rs. 10 per share). Each Shareholder is eligible for one vote per share held. The dividend proposed (if any)
by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General
Meeting, except in case of interim dividend (if any). In the event of liquidation, the equity shareholders are
eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in
proportion to their shareholding.

35. Segment Reporting

The Company is primarily engaged in the business of manufacturing, buying, selling, importing, exporting, and
dealing in textiles, including cotton, silk, art silk, rayon, nylon, and other related goods. Accordingly, the
Company has multiple reportable segments as defined under Accounting Standard (AS) 17. However, segment-
wise disclosure of revenue, results, assets, and liabilities has not been provided in the accompanying financial
statements.

36. The name of the Company has been changed from M/s Cedaar Textile Private Limited to M/s Cedaar Textile
Limited vide fresh certificate of incorporation received from Ministry of Corporate Affairs dated 22 August
2024.

37. Employee Benefits Plans
Defined contribution plans:

The Company makes Provident fund and Employee State Insurance Scheme contribution which are defined
contribution plans, for qualifying employees. Under the Schemes, the Company is required to contribute a

iii) Economic assumptions:

The principal assumptions are the discount rate and salary growth rate. The discount rate is generally
based upon the market yield available on the Government bonds at the accounting date with a term that
matches that of the liabilities and the salary growth rate takes account of inflation, seniority, promotion
and other relevant factors on long term basis.

These assumptions were developed by management with the assistance of independent actuarial
appraisers. Discount factors are determined close to each year-end by reference to government bonds
and that have terms to maturity approximating to the terms of the related obligation. Other assumptions
are based on management''s historical experience.

38. Details of dues to Micro and Small Enterprises as defined under the MSMED Act, 2006

Under the Micro, Small and Medium Enterprises Development Act, 2006 which came into force from 2nd October
2006, certain disclosures are required to be made relating to Micro and Small Enterprises.

The Management has identified enterprises which have provided goods and services to the Company and which
qualify under the definition of micro and small enterprises as defined under the Micro, Small and Medium Enterprises
Development Act, 2006. Accordingly, the disclosure in respect of amounts payable to such enterprises as at March
31, 2024 has been made based on the information available with the Company. The information has been determined
to the extent such parties have been identified on the basis of information available with the Company. Auditors have
placed reliance on such information provided by the Management.

# The details of amounts outstanding to micro and small enterprises under the Micro, Small and Medium
Enterprises Development Act, 2006 are as per available information with the Company.

**Dues to Micro, Small and Medium Enterprises including interest have been determined to the extent such parties
have been identified on the basis of information collected by the Management an information collected in this regard

39. Additional regulatory information

i. The title deeds of all the immovable properties (other than properties where the Company is the lessee and
the lease agreements are duly executed in favour of the lessee) are held in the name of the Company.

ii. The company does not hold any benami property as defined under the Benami Transactions (Prohibition) Act,
1988 (45 of 1988) and the rules made thereunder. No proceeding has been initiated or pending against the
company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988)
and the rules made there under.

iii. The Company has not been declared willful defaulter by any bank or financial institution or other lender.

iv. There are no transactions / relationship with struck off companies.

v. The Company does not have any transaction not recorded in the books of accounts that has been surrendered
or disclosed as income during the year in the tax assessments under the Income-tax Act, 1961 (such as, search
or survey or any other relevant provisions of the Income-tax Act, 1961). Further, there was no previously
unrecorded income and no additional assets were required to be recorded in the books of account during the
year.

vi. The Company has neither traded nor invested in Crypto currency or Virtual Currency during the year ended
March 31, 2025. Further, the Company has also not received any deposits or advances from any person for the
purpose of trading or investing in Crypto Currency or Virtual Currency.

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

viii. The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read
with Companies (Restriction on number of Layers) Rules, 2017, and there are no companies beyond the
specified layers.

ix. The Company has not advanced, loaned, or invested funds (including borrowed funds, share premium, or any
other source or kind of funds) to any other person or entity, including foreign entities ("Intermediaries”), with
the understanding (whether recorded in writing or otherwise) that the Intermediary shall, whether directly or
indirectly: lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of
the Company (ultimate beneficiaries), or provide any guarantee, security, or the like on behalf of the ultimate
beneficiaries. However, due to the limitations in the availability of complete data and documentation, the
Company is unable to independently verify or trace whether any such arrangements exist. The management
has represented that, to the best of its knowledge and belief, no such transactions have taken place during the
reporting period.

x. The Company has filed quarterly returns or statements with such banks, which are not in agreement with the
books of accounts

xi. The Company has not entered into any scheme of arrangement approved by the Competent Authority in terms
of sections 230 to 237 of the Companies Act, 2013.

xii. The Company does not have any charges or satisfaction of charges which are yet to be registered with the
Registrar of Companies beyond the statutory period.

xiii. The Company has not received any funds from any person(s) or entity(ies), including foreign entities ("Funding
Party”), with the understanding (whether recorded in writing or otherwise) that the Company shall 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 provide any guarantee, security or the like on behalf of the
ultimate beneficiaries. However, due to limitations in the availability of complete supporting documentation
and data, the Company is unable to independently verify the existence or non-existence of such arrangements,
if any. The management has confirmed that, to the best of its knowledge and belief, no such transactions have
occurred during the reporting period.

40. Events after the Reporting Period

The Company has issued 43,50,000 equity shares with a face value of Rs. 10 each and at a premium of Rs.
130 per share by way of initial public offer ("IPO") and got listed on Emerge Platform of NSE Limited on 07^th
July 2025.

41. Previous year amounts have been regrouped and/or reclassified wherever necessary to confirm to those of
the current year grouping and/or classification.

This is the summary of material accounting policies and other explanatory information referred to in our report
of even date.

For and on behalf of the board of directors of

For KAPISH JAIN & ASSOCIATES

Chartered Accountants CEDAAR TEXTILE LIMITED

Firm’s Registration No.: 022743N

Amit Kumar Madheshia VIRENDER GOYAL RAJESH MITTAL

Partner Director & Chief Finance Officer Managing Director

Membership No. 521888 DIN: 08702573 DIN: 08702551

Place: New Delhi Place: Indore Place: Bangalore

Date: September 25, 2025

ANUSHKA JAIN

Company Secretary
Membership No. A74894
Place: Ludhiana