Notes to Accounts of Gokaldas Exports Ltd.

Mar 31, 2025

l. Provisions and contingent liabilities

i. Provisions:

Provisions are recognized when the Company has
a present obligation (legal or constructive) as a
result of a past event, it is probable that an outflow
of resources embodying economic benefits will
be required to settle the obligation and a reliable
estimate can be made of the amount of the
obligation. When the Company expects some or
all of a provision to be reimbursed, for example,
under an insurance contract, the reimbursement
is recognized as a separate asset, but only when
the reimbursement is virtually certain. The expense
relating to a provision is presented in the statement
of profit and loss net of any reimbursement.

If the effect of the time value of money is material,
provisions are discounted using a current pre-tax
rate that reflects, when appropriate, the risks
specific to the liability. When discounting is used,
the increase in the provision due to the passage of
time is recognized as a finance cost.

ii. Contingent liabilities:

A contingent liability is a possible obligation that
arises from past events whose existence will be
confirmed by the occurrence or non-occurrence
of one or more uncertain future events beyond the
control of the Company or a present obligation
that is not recognised because it is not probable
that an outflow of resources will be required to
settle the obligation. A contingent liability also
arises in extremely rare cases where there is a
liability that cannot be recognised because it
cannot be measured reliably. The Company does

not recognise a contingent liability but discloses its
existence in the standalone financial statements.

Provisions and contingent liabilities are reviewed at
each balance sheet.

m. Retirement and other employee benefits

Retirement benefit in the form of provident fund,
employee state insurance and pension fund are
defined contribution scheme. The Company has
no obligation, other than the contribution payable
to the respective funds. The Company recognises
contribution payable to provident fund, pension
fund and employee state insurance as expenditure,
when an employee renders the related service. If
the contribution payable to the scheme for service
received before the balance sheet reporting
date exceeds the contribution already paid, the
deficit payable to the scheme is recognised as a
liability after deducting the contribution already
paid. If the contribution already paid exceeds the
contribution due for services received before the
balance sheet date, then excess is recognised as
an asset to the extent that the pre-payment will
lead to, for example, a reduction in future payment
or a cash refund.

All employee benefits payable/available within
twelve months of rendering the service are classified
as short term employee benefits. Benefits such as
salaries, allowances and bonus etc., are recognised
in the statement of profit and loss in the period in
which the employee renders the related service.

Gratuity liability is a defined benefit obligation which
is funded through policy taken from Life Insurance
Corporation of India(''LIC'') and liability (net of fair
value of investment in LIC) is provided for on the
basis of actuarial valuation on projected unit credit
method made at the end of each balance sheet
date. Every employee who has completed 4 years
240 days or more of the service gets a gratuity on
departure at 15 days'' salary (last drawn salary) of
each completed year of service. The fair value of
the plan assets is reduced from the gross obligation
under the defined benefit plans to recognise the
obligation on a net basis.

Accumulated leave, which is expected to be utilized
within the next twelve months, is treated as short¬
term employee benefit. The Company measures the
expected cost of such absences as the additional
amount that it expects to pay as a result of the

unused entitlement that has accumulated at the
reporting date.

The Company treats accumulated leave expected
to be carried forward beyond twelve months, as
long-term employee benefit for measurement
purposes. Such long-term compensated absences
are provided for based on the actuarial valuation
using the projected unit credit method at the year-
end.

The Company presents the leave as a current
liability in the standalone balance sheet, to the
extent it does not have an unconditional right to
defer its settlement for twelve months after the
reporting date.

Re-measurements, comprising of actuaria
gains and losses, the effect of the asset ceiling
excluding amounts included in net interest on the
net defined benefit liability and the return on plan
assets (excluding amounts included in net interest
on the net defined benefit liability), are recognised
immediately in the standalone balance sheet with a
corresponding debit or credit to retained earnings
through OCI in the period in which they occur. Re¬
measurements are not reclassified to profit or loss
in subsequent periods.

Past service costs are recognised in profit or loss
on the earlier of:

a. The date of the plan amendment or curtailment
and

b. The date that the Company recognises relatec
restructuring costs.

Net interest is calculated by applying the discount
rate to the net defined benefit liability or asset
The Company recognises the following changes ir
the net defined benefit obligation as an expense in
the statement of profit and loss:

a. Service costs comprising current service
costs, past-service costs, gains and losses on
curtailments and non-routine settlements, and

b. Net interest expense or income.

n. Share- based payments

Employees of the Company receive remuneration
in the form of share-based payments, whereby
employees render services as consideration for
equity instruments (equity-settled transactions).

Equity-settled transactions:

The cost of equity-settled transactions is
determined by the fair value at the date
when the grant is made using an appropriate
valuation model.

That cost is recognised, together with a
corresponding increase in share-based payment
(SBP) reserves in equity, over the period in which
the service/performance conditions are fulfilled in
employee benefits expense. The cumulative expense
recognised for equity-settled transactions at
each reporting date until the vesting date reflects
the extent to which the vesting period has expired
and the Company''s best estimate of the number
of equity instruments that will ultimately vest. The
statement of standalone profit and loss expense
or credit for a period represents the movement in
cumulative expense recognised as at the beginning
and end of that period and is recognised in
employee benefits expense.

Service and non-market performance conditions
are not taken into account when determining the
grant date fair value of awards, but the likelihood
of the conditions being met is assessed as part
of the Company''s best estimate of the number of
equity instruments that will ultimately vest. Market
performance conditions are reflected within
the grant date fair value. Any other conditions
attached to an award, but without an associated
service requirement, are considered to be non¬
vesting conditions. Non-vesting conditions are
reflected in the fair value of an award and lead to
an immediate expensing of an award unless there
are also service and/or performance conditions.

No expense is recognised for awards that do not
ultimately vest because non-market performance
and/or service conditions have not been met. Where
awards include a market or non-vesting condition,
the transactions are treated as vested irrespective
of whether the market or non-vesting condition is
satisfied, provided that all other performance and/
or service conditions are satisfied.

When the terms of an equity-settled award are
modified, the minimum expense recognised is the
expense had the terms had not been modified, if the
original terms of the award are met. An additional
expense is recognised for any modification that
increases the total fair value of the share-based
payment transaction, or is otherwise beneficial
to the employee as measured at the date of

modification. Where an award is cancelled by
the entity or by the counterparty, any remaining
element of the fair value of the award is expensed
immediately through profit or loss.

The dilutive effect of outstanding options is
reflected as additional share dilution in the
computation of diluted earnings per share (except
for anti-dilution).

o. Financial instruments

Financial assets and financial liabilities are
recognised when the Company becomes a party
to the contract embodying the related financial
instruments. All financial assets, financial liabilities
and financial guarantee contracts are initially
measured at transaction cost and where such
values are different from the fair value, 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 and financial liabilities at fair value through
profit and loss are immediately recognised in the
statement of profit and loss. In case of interest
free or concession loans/debentures/preference
shares given to subsidiaries, the excess of the
actual amount of the loan over initial measure at
fair value is accounted as an equity investment.

Investment in equity instruments issued by
subsidiaries, associates and joint ventures are
measured at cost less impairment.

Effective interest method

The effective interest method is a method of
calculating the amortised cost of a financial
instrument and of allocating interest income or
expense over the relevant period. The effective
interest rate is the rate that exactly discounts
future cash receipts or payments through the
expected life of the financial instrument, or where
appropriate, a shorter period.

(a) Financial assets

Financial assets at amortised cost

Financial assets are subsequently measured at
amortised cost if these financial assets are held
within a business model 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 measured at fair value

Financial assets are measured at fair value through
other comprehensive income if these financial
assets are held within a business model whose
objective is to hold these assets in order to collect
contractual cash flows or to sell these financial
assets and the contractual terms of the financial
asset give rise on specified dates to cash flows
that are solely payments of principal and interest
on the principal amount outstanding.

Financial asset not measured at amortised cost or
at fair value through other comprehensive income
is carried at fair value through the statement of
profit and loss.

For financial assets maturing within one year from
the balance sheet date, the carrying amounts
approximate fair value due to the short maturity of
these instruments.

Impairment of financial assets excluding
investments in subsidiary

Loss allowance for expected credit losses is
recognised for financial assets measured at
amortised cost and fair value through other
comprehensive income.

The company recognises impairment loss on trade
receivables using expected credit loss model,
which involves use of provision matrix constructed
on the basis of historical credit loss experience as
permitted under Ind AS 109 - Impairment loss on
investments.

For financial assets whose credit risk has not
significantly increased since initial recognition,
loss allowance equal to twelve months expected
credit losses is recognised. Loss allowance equal
to the lifetime expected credit losses is recognised
if the credit risk on the financial instruments has
significantly increased since initial recognition.

The Company de-recognises a financial asset only
when the contractual rights to the cash flows
from the financial asset expire, or it transfers the
financial asset and the transfer qualifies for de¬
recognition under Ind AS 109.

If the Company neither transfers nor retains
substantially all the risks and rewards of ownership
and continues to control the transferred asset,
the Company recognises its retained interest in
the assets and an associated liability for amounts
it may have to pay.

If the Company retains substantially all the risks
and rewards of ownership of a transferred financial
asset, the Company continues to recognise the
financial asset and also recognises a collateralised
borrowing for the proceeds received.

On de-recognition of a financial asset in its entirety,
the difference between the carrying amount
measured at the date of de-recognition and the
consideration received is recognised in statement
of profit or loss.

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

Financial liabilities and equity instruments issued
by the Company are classified according to the
substance of the contractual arrangements
entered into 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 Company after deducting all of its liabilities.
Equity instruments are recorded at the proceeds
received, net of direct issue costs.

Financial Liabilities

Financial liabilities are initially measured at fair value,
net of transaction costs, and are subsequently
measured at amortised cost, using the effective
interest rate method where the time value of
money is significant. Interest bearing bank loans,
overdrafts and issued debt are initially measured

at fair value and are subsequently measured at
amortised cost using the effective interest rate
method. Any difference between the proceeds
(net of transaction costs) and the settlement or
redemption of borrowings is recognised over the
term of the borrowings in the statement of profit
and loss.

For trade and other payables maturing within one
year from the balance sheet date, the carrying
amounts approximate fair value due to the short
maturity of these instruments.

i. Financial guarantee contracts

Financial guarantee contracts issued by the
Company are those contracts that require a
payment to be made to reimburse the holder for a
loss it incurs because the specified debtor fails to
make a payment when due in accordance with the
terms of a debt instrument. Financial guarantee
contracts are recognised initially as a liability at
fair value, adjusted for transaction costs that
are directly attributable to the issuance of the
guarantee. Subsequently, the liability is measured
at the higher of the amount of loss allowance
determined as per impairment requirements of Ind
AS 109 and the amount recognised less cumulative
amortisation.

ii. De-recognition

A financial liability is derecognised when the
obligation under the liability is discharged or
cancelled or expires. When an existing financial
liability is replaced by another from the same lender
on substantially different terms, or the terms
of an existing liability are substantially modified,
such an exchange or modification is treated as
the de-recognition of the original liability and the
recognition of a new liability. The difference in the
respective carrying amounts is recognised in the
statement of profit and loss.

Off-setting of financial instruments

Financial assets and financial liabilities are offset
and the net amount is reported in the standalone
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.

The Company holds derivative financial instruments
such as foreign exchange forward put/call option
to mitigate the risk of changes in exchange rates
on foreign currency exposures.

(a) Financial assets or financial liabilities, at
fair value through profit or loss

This category has derivative financial assets or
liabilities which are not designated as hedges.
Any derivative that is either not designated a
hedge, or is so designated but is ineffective as
per Ind AS 109, is categorized as a financial asset
or financial liability, at fair value through profit or
loss. Derivatives not designated as hedges are
recognized initially at fair value and attributable
transaction costs are recognized in net profit in
the statement of profit and loss when incurred.
Subsequent to initial recognition, these derivatives
are measured at fair value through profit or loss
and the resulting gains or losses are included in the
statement of profit and loss.

(b) Cash flow hedge accounting

The Company designates certain foreign exchange
forward contracts as cash flow hedges to mitigate
the risk of foreign exchange exposure on highly
probable forecast cash transactions. When a
derivative is designated as a cash flow hedging
instrument, the effective portion of changes in the
fair value of the derivative is recognized in other
comprehensive income and accumulated in the
cash flow hedging reserve. Any ineffective portion
of changes in the fair value of the derivative is
recognized immediately in the net profit in the
statement of profit and loss. If the hedging
instrument no longer meets the criteria for hedge
accounting, then hedge accounting is discontinued
prospectively. If the hedging instrument expires or
is sold, terminated or exercised, the cumulative gain
or loss on the hedging instrument recognized in
cash flow hedging reserve till the period the hedge
was effective remains in cash flow hedging reserve
until the forecasted transaction occurs. The
cumulative gain or loss previously recognized in the
cash flow hedging reserve is transferred to the net
profit in the statement of profit and loss upon the
occurrence of the related forecasted transaction.
If the forecasted transaction is no longer expected
to occur, then the amount accumulated in cash

flow hedging reserve is reclassified to net profit in
the standalone statement of profit and loss.

q. Impairment of non-financial assets

As at the end of each accounting year, the
company reviews the carrying amounts of its
PPE, investment property, intangible assets and
investments in subsidiary companies to determine
whether there is any indication that those assets
have suffered an impairment loss. If such indication
exists, the said assets are tested for impairment
so as to determine the impairment loss, if any.
Goodwill and the intangible assets with indefinite
life are tested for impairment each year.

Impairment loss is recognised when the carrying
amount of an asset exceeds its recoverable
amount. Recoverable amount is determined:

(i) in the case of an individual asset, at the higher
of the net selling price and the value in use,
and

(ii) in the case of a cash generating unit (a
group of assets that generates identified,
independent cash flows), at the higher of the
cash generating unit''s net selling price and the
value in use.

(The amount of value in use is determined as the
present value of estimated future cash flows
from the continuing use of an asset and from
its disposal at the end of its useful life. For this
purpose, the discount rate (pre-tax) is determined
based on the weighted average cost of capital of
the company suitably adjusted for risks specified
to the estimated cash flows of the asset).

For this purpose, a cash generating unit is
ascertained as the smallest identifiable group of
assets that generates cash inflows that are largely
independent of the cash inflows from other assets
or groups of assets.

If recoverable amount of an asset (or cash
generating unit) is estimated to be less than
its carrying amount, such deficit is recognised
immediately in the Statement of Profit and Loss
as impairment loss and the carrying amount of the
asset (or cash generating unit) is reduced to its
recoverable amount.

When an impairment loss subsequently reverses, the
carrying amount of the asset (or cash generating
unit) is increased to the revised estimate of its
recoverable amount, but so that the increased
carrying amount does not exceed the carrying
amount that would have been determined had
no impairment loss is recognised for the asset (or
cash generating unit) in prior years. A reversal of
an impairment loss is recognised immediately in the
Statement of Profit and Loss.

r. Cash and Cash equivalent

Cash and cash equivalent in the standalone
balance sheet comprise cash at banks and on hand
and short-term deposits with an original maturity
of three months or less, which are subject to an
insignificant risk of changes in value.

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

The Statement of Cash Flows has been prepared
under the Indirect method as set out in IND AS
- 7 on Statement of Cash Flows notified under
section 133 of the Companies Act, 2013 (the Act)
[Companies (Indian Accounting Standards) Rules,
2015], as amended.

(b) Terms/rights attached to equity shares

The rights, powers and preferences relating to each class of share capital and the qualifications, limitations

and restrictions thereof are contained in the Memorandum and Articles of Association of the Company.

The principal rights are as below:

(i) The Company has only one class of equity shares having a par value of '' 5 per share. Each holder of
equity is entitled to one vote per share.

(ii) The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of
Directors is subject to the approval of the shareholders in ensuing Annual General Meeting, except in
case of interim dividend.

(iii) In event of liquidation of the Company, the holders of equity shares would be entitled to receive
remaining assets of the Company, after distribution of all preferential amounts. However no such
preferential amounts exist currently. The distribution will be in proportion to the number of equity
shares held by the shareholders.

Terms and conditions of the above financial liabilities:

(i) Trade payables are non interest bearing.

(ii) For explanations on the Company''s credit risk management processes, Refer note 43.

(iii) Trade payables for micro and small enterprises are non interest bearing and are normally settled on 0
days to 45 days credit terms.

(iv) Trade payables other than micro and small enterprises are non interest bearing and are normally
settled on 0 days to 90 days credit terms.

(v) Trade payables due to related parties are disclosed in note no. 40.

¹The information as required to be disclosed pursuant under the Micro, Small and Medium Enterprises
Development Act, 2006 (MSMED Act, 2006) has been determined to the extent such parties have been
identified on the basis of information available with the Company.

There are no disputed trade payables as at and for the years ended March 31, 2025 and March 31, 2024.
Below is the list of undisputed trade payables outstanding for following periods from the due date.

Packing credit loan (Indian rupee and USD) from banks carries interest at upto 6 months Marginal cost of
funds based lending rate (''MCLR'')/Secured Overnight SOFR 0% to 1.75 % (March 31, 2024: upto 6 months
Marginal cost of funds based lending rate (''MCLR'') 0% to 0.75%) and interest is payable monthly.

Packing credit loans (Indian rupee and USD) from all the banks are secured by first pari passu charge on
current assets of the Company including hypothecation of inventory including stores and spares (including
goods in transit/goods awaiting bank negotiation/goods with processors meant for export) and trade
receivables and fixed assets of the Company.

Bill discounting from banks carries interest upto 6 months MCLR/SOFR plus upto 1.75 % for indian rupee
bills discounting (March 31, 2024: upto 0.75% for Indian Rupee bills discounting) and interest is payable on
transaction basis.

Bill discounting loans from all the banks are secured
by first pari passu charge on current assets of the
Company including hypothecation of inventory
including stores and spares (including goods in
transit/goods awaiting bank negotiation/goods
with processors meant for export) and trade
receivables and fixed assets of the Company.

Working Capital demand loans from banks carries
interest ranging from: not applicable (March 31,
2024: 8.30% to 8.75%).

Bank overdraft from banks carries interest linked
to at 1 Year MCLR plus applicable spreads ranging
from 0.75% to 3.00% p.a. (March 31, 2024: at 1 year
MCLR plus applicable spreads ranging from 0.75%
to 3.00% p.a.). Interest is payable on monthly basis.

Bank overdraft is secured by pari passu
hypothecation of inventory including stores and
spares (including goods in transit/goods awaiting
bank negotiation/goods with processors meant for
export) and trade receivables of the Company and
first pari passu charge on current assets of the
Company.

The Company has provided the factory land to
certain banks as collateral for non fund based
working capital facility availed by the Company.

The Company has further provided the following as
the collateral to the Multiple Banking Arrangement
(MBA) lenders towards the borrowings availed by
the Company and as mentioned in the aforesaid
notes.

a) Pari passu charge on certain factory building
located in Bangalore and Mysore owned by the
Company

b) Pari passu charge on plant and machinery and
certain movable assets of the Company

During the year, the Company has availed the
interest subvention for 6 months i.e. from April
2024 to June 2024 (March 31, 2024: 12 months i.e.
from April 2023 to March 2024) under Interest
Equalisation Scheme for pre and post shipment
rupee export credit of Reserve Bank of India.

Repayment of current borrowings and
Interest:

During the year and as on the balance sheet date,
the Company has not defaulted in repayment of
current borrowings and interest there on.

Loans from related parties:

During the year and as on the balance sheet date,
the Company has not taken any borrowings from
related parties.

33. INCOME TAX

The Company is subject to income tax in India on
the basis of its standalone financial statements.
The Company can claim tax exemptions/deductions
under specific sections of the Income Tax Act, 1961
subject to fulfilment of prescribed conditions, as
may be applicable. As per the Income Tax Act, 1961,
the Company is liable to pay income tax based on
higher of regular income tax payable or the amount
payable based on the provisions applicable for
Minimum Alternate Tax (MAT). MAT paid in excess
of regular income tax during a year can be carried
forward for a period of fifteen years and can be
offset against future tax liabilities arising from
regular income tax.

Section 115BAA has newly been inserted in
the Income Tax Act, 1961 vide Taxation Laws
(Amendment) Ordinance, 2019 (subsequently
enacted on December 11, 2019 as The Taxation Laws
(Amendment) Act, 2019) which provides a domestic
company with an irrevocable option to pay tax at
a lower rate of 22% (effective rate of 25.168%) for
any previous year relevant to the assessment year
beginning on or after April 1, 2020. The lower rate
shall be applicable subject to certain conditions,
including that the total income should be computed
without claiming specific deduction or exemptions.
MAT would be inapplicable to companies opting to
apply the lower tax rate.

Business loss can be carried forward for a maximum
period of eight assessment years immediately
succeeding the assessment year to which the loss
pertains. Unabsorbed depreciation can be carried
forward for an indefinite period.

34. EARNINGS PER SHARE (EPS)

Basic EPS amounts are calculated by dividing the profit/(loss) for the year attributable to equity holders
of the Company by the weighted average number of equity shares outstanding during the year. Partly
paid equity shares are treated as a fraction of an equity share to the extent that they were entitled
to participate in dividends relative to a fully paid equity share during the reporting period. The weighted
average number of equity shares outstanding during the period is adjusted for events such as bonus issue,
bonus element in a rights issue, share spilt and reverse share split (consolidation of shares) that have
changed the number of equity shares outstanding, without a corresponding change in resources.

Diluted EPS amounts are calculated by dividing the loss attributable to equity holders of the Company by
the weighted average number of equity shares outstanding during the year plus the weighted average
number of equity shares that would be issued on conversion of all the dilutive potential equity shares into
equity shares.

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.

f. Contingencies

Contingent liabilities may arise from the ordinary
course of business in relation to claims against the
Company, including legal and contractual claims.
By their nature, contingencies will be resolved only
when one or more uncertain future events occur
or fail to occur. The assessment of the existence,
and potential quantum, of contingencies inherently
involves the exercise of significant judgement and
the use of estimates regarding the outcome of
future events.

In respect of bank guarantees provided by the
Company to third parties, the Company considers
that it is more likely than not that such an amount
will not be payable under the guarantees provided.

g. Defined benefit obligations

The cost of the defined benefit gratuity plan 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.

The parameter most subject to change is the
discount rate. In determining the appropriate
discount rate for plans operated in India, the
management considers the interest rates of
government bonds.

The mortality rate is based on publicly available
mortality tables for India. Those mortality tables
tend to change only at interval in response to

demographic changes. Future salary increases and
gratuity increases are based on expected future
inflation rates.

Further details about gratuity obligations are given
in note 39.

h. Provision for obsolete inventory

Inventory write downs are accounted, considering
the nature of inventory, ageing, liquidation plan
and net realisable value. These write downs are
recognised as an expense and are included in
"(Increase)/decrease in inventories of finished
goods and work-in-progress" in the statement of
profit and loss.

i. Expected credit losses on financial assets

The impairment provisions of financial assets
and contract assets are based on assumptions
about risk of default and expected timing of
collection. The Company uses judgment in making
these assumptions and selecting the inputs
to the impairment calculation, based on the
Company''s past history of collections, customer''s
creditworthiness, existing market conditions as
well as forward looking estimates at the end of
each reporting period.

j. Non current assets held for sale

Non current assets held for sale are measured
at the lower of carrying amount or fair value less
costs to sell. Determination of fair value involves
management estimate. Fair value of assets held
for sale is determined using valuation technique
involving unobservable inputs. Judgement is
involved in estimating future cash flow, determining
discount rate etc.

k. Employee share based payments

Company''s share based payments to employees
primarily consist of Employee Stock Option Plans
(''ESOPs'') and Restricted Stock Units (''RSUs'').
The share-based compensation expense is
determined based on the Company''s estimate
of fair value at grant date of the ESOPs/RSUs
granted. The Company estimates fair value of
ESOPs/RSUs using Black-Scholes-Merton (''BSM'')
option pricing model. The BSM model is based on
various assumptions including expected volatility,
expected life, interest rate.

l. Revenue from Export incentives

For measurement of income from the export
incentives, significant estimates and judgments
are made which include, eligibility of the export
transaction for the claim, the timing of processing
such claim and its subsequent realization and also
the rate notified/to be notified by the government
authorities.

36. SEGMENT INFORMATION- DISCLOSURE
PURSUANT TO IND AS 108 ''OPERATING
SEGMENT''

(a) Basis of identifying operating
segments:

Operating segments are identified as those
components of the Company (a) that engage
in business activities to earn revenues and incur
expenses (including transactions with any of the
Company''s other components); (b) whose operating

results are regularly reviewed by the Company''s
Chief Executive Officer to make decisions about
resource allocation and performance assessment
and (c) for which discrete financial information is
available.

The accounting policies consistently used in the
preparation of the financial statements are also
applied to record revenue and expenditure in
individual segments. Assets, liabilities, revenues
and direct expenses in relation to segments are
categorised based on items that are individually
identifiable to that segment, while other items,
wherever allocable, are apportioned to the
segments on an appropriate basis. Certain items
are not specifically allocable to individual segments
as the underlying services are used interchangeably.

(b) The Company is engaged in a single business
segment of sale of garment and hence no
additional disclosures are required.

37. COMMITMENTS AND CONTINGENCIES
I. Leases

The Company evaluates if an arrangement qualifies to be a lease as per the requirements of Ind AS 116.
Identification of a lease requires significant judgement. The Company uses judgement in assessing whether
a contract (or part of contract) include a lease, the lease term (including anticipated renewals), the
applicable discount rate, variable lease payments whether are in-substance fixed. The judgement involves
assessment of whether the asset included in the contract is a fully or partly identified asset based on
the facts and circumstances, whether the contract include a lease and nonlease component and if so,
separation thereof for the purpose of recognition and measurement, determination of lease term basis,
inter alia the non-cancellable period of lease and whether the lessee intends to opt for continuing with
the use of the asset upon the expiry thereof, and whether the lease payments are fixed or variable or a
combination of both. The Company records the lease liability at the present value of the lease payments
discounted at the incremental borrowing rate.

II. Contingencies

In the ordinary course of business, the Company faces claims and assertions by various parties. The
Company assesses such claims and assertions and monitors the legal environment on an ongoing basis
with the assistance of external legal counsel, wherever necessary. The Company records a liability for any
claims where a potential loss is probable and capable of being estimated and discloses such matters in
its financial statements, if material. For potential losses that are considered possible, but not probable,
the Company provides disclosure in the financial statements but does not record a liability in its accounts
unless the loss becomes probable.

The following is a description of claims and assertions where a potential loss is possible, but not probable.
The Company believes that none of the contingencies described below would have a material adverse
effect on the Company''s financial condition, results of operations or cash flows.

IV. Corporate guarantee

The Company has provided corporate guarantee to the banks for the credit limits obtained by the wholly
owned subsidiaries namely, "Gokaldas Exports FZCO, United Arab Emirates" and "Nava Apparels L.L.C-FZ,
United Arab Emirates" and to step down subsidiary "Amibros S.A., Panama (operating under the name of
Atraco Industrial Enterprise, United Arab Emirates)" respectively.

Also, refer note 55 on Corporate guarantee to financial institutions on behalf of BRFL Textiles Private
Limited.

38. HEDGING ACTIVITIES
Cash flow hedges

Foreign exchange forward contracts measured at fair value through OCI are designated as hedging
instruments in cash flow hedges of forecast sales in foreign currency. These forecast transactions are
highly probable, and they comprise about 100% of the Company''s total expected sales in foreign currency.

The foreign exchange forward contract balances vary with the level of expected foreign currency sales
and changes in foreign exchange forward rates.

42. SHARE- BASED PAYMENTS

The Company''s employee benefit plans are as
summarised below:

In September 2010, the shareholders of the
Company approved Stock Option Plan (ESOP 2010)
in accordance with the guidelines issued by the
Securities and Exchange Board of India (SEBI) for
Employees Stock Options Plan. The plan covered
all employees of the Company including employees
of subsidiaries and directors and provided for the
issue of 1,718,800 shares of '' 5 each.

Further, the shareholders of the Company by way of
special resolution dated August 26, 2018 approved
Employee Restricted Stock Unit Plan (RSU 2018) in
accordance with the guidelines issued by the SEBI
for employees Stock Options Plan. The plan covered
all employees of the Company including employees
of subsidiaries, directors and provided for the issue
of 2,133,040 shares of '' 5 each.

Further, the shareholders of the Company by way
of special resolution dated April 03, 2022 and

February 29, 2024 approved Stock Option Plan
(ESOP 2022) in accordance with the guidelines
issued by the SEBI for employees Stock Options
Plan. The plan covered all the employees of the
Company including employees of subsidiairies,
directors and provided for the issue of 4,500,000
shares of '' 5 each.

The fair value of the stock options is estimated
at the grant date using a Black-Scholes-Merton
(''BSM'') option pricing model. The BSM option pricing
model incorporates various assumptions including
expected volatility, expected life and interest
rates. The Company recognises share based
compensation cost as expense over the requisite
service period.

The contractual term of each option granted is
ranging from two to three years. There are no cash
settlement alternatives. The Company does not
have a past practice of cash settlement for these
share options.

The carrying value of financial assets represents
the maximum credit risk. The maximum exposure
to credit risk was '' 135,610.82 lakhs, '' 85,024.24
lakhs, as at March 31, 2025 and March 31, 2024
respectively, being the total carrying value of trade
receivables, balances with bank, bank deposits,
investments other than investments in subsidiaries
and other financial assets.

Customer credit risk is managed by each business
unit subject to the Company''s established policy,
procedures and control relating to customer
credit risk management. An impairment analysis is
performed at each reporting date on an individual
basis for major customers. The Company does not
hold collateral as security.

With respect to Trade receivables, the Company has
constituted the terms to review the receivables on
periodic basis and to take necessary mitigations,
wherever required. The Company creates allowance
for all unsecured receivables based on lifetime
expected credit loss based on a provision matrix.
The provision matrix takes into account historical
credit loss experience and is adjusted for forward
looking information. The expected credit loss
allowance is based on the ageing of the receivables
that are due and rates used in the provision matrix.

Credit risk from balances with bank and financial
institutions is managed by the Company''s treasury
department in accordance with the Company''s
policy. Investments of surplus funds are made
only with approved counterparties and within
credit limits assigned to each counterparty. The
limits are set to minimise the concentration of
risks and therefore mitigate financial loss through
counterparty''s potential failure to make payments.

Liquidity risk

Liquidity risk refers to the risk that the Company
cannot meet its financial obligations. The objective
of liquidity risk management is to maintain sufficient
liquidity and ensure that funds are available for use
as per requirements. The Company has obtained
fund and non-fund based working capital lines
from various banks. The Company invests its
surplus funds in bank fixed deposit and government
securities, which carry no or low market risk.

The Company monitors its risk of a shortage of
funds on a regular basis. The Company''s objective
is to maintain a balance between continuity of
funding and flexibility through the use of bank
overdrafts, bank borrowings etc. The Company
assessed the concentration of risk with respect to
refinancing its debt and concluded it to be low.

Equity Price risk

Equity Price Risk is related to the change in fair value of the investments in equity securities. Company''s
investments in equity securities, including investments held for sale, are subject to changes in fair value
of investments. The carrying value of investments represents the maximum equity risk. The maximum
exposure to equity price risk was '' 34,808.49 lakhs and '' 34,807.65 lakhs as on March 31, 2025 and March 31,
2024 respectively, being the carrying value (net of provisions) of investments in unquoted equity shares.
The risk is arising primarily on account of the Company''s investment in a foreign associate.

44. CAPITAL MANAGEMENT

The Company''s capital management is intended to create value for shareholders by facilitating the
meeting of long term and short term goals of the Company.

The Company determines the amount of capital required on the basis of annual business plan coupled
with long term and short term strategic investment and expansion plans. The funding needs are met
through equity, cash generated from operations and sale of certain assets, long term and short term
bank borrowings and issue of securities.

For the purpose of the Company''s capital management, capital includes issued equity capital, share
premium and all other equity reserves attributable to the equity holders of the Company.

The Company manages its capital structure and makes adjustments in light of changes in economic
conditions and the requirements of the financial covenants. To maintain or adjust the capital structure,
the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue
new shares. The Company monitors capital using a gearing ratio, which is total debt divided by total
capital plus total debt. The Company''s policy is to keep the gearing ratio at an optimum level to ensure
that the debt related covenant are complied with.

45. The Company is in process of taking
necessary steps to comply with the Transfer
Pricing requirements relating to the preparation &
maintenance of the Transfer Pricing documentation
with respect to the specified domestic transactions
entered into by the Company during financial year
ended March 31, 2025. The Management is of the
opinion that the specified domestic transactions
are at arm''s length and hence the aforesaid
legislation will not have any impact on the
standalone financial statements, particularly on
the amount of tax expense and that of provision
for taxation.

46. The Company assessed the fair value less cost
of sale of the investment in an associate held for
sale. Change in the regulatory environment and
the market conditions effecting the associate has
adversely affected the fair value of the Company''s
investment. The Company has written down the
carrying value of the asset by recognizing an
impairment loss of '' 626.56 lakhs as an exceptional
charge during the year ended March 31, 2019. The
Company continues to make efforts to mitigate the
loss by selling such investment in the near future,
which could result in a partial or full reversal of the
impairment loss. Further to related developments
during the year on this matter, including claims filed
by the Company for the recovery, the Company
has reassessed that it is appropriate to reclassify
the Investment from ''Associate'' to ''Others''.

47. The Company had filed petition with the
Company Law Board for compounding of offence
u/s. 297 of the erstwhile Companies Act, 1956 for
the transactions entered with CMS Info Systems
Private Limited between July 2009 to October 2011
and as at date, the petition is pending with the
Company Law Board.

For periods subsequent to October 2011, the
Company had filed an application with Central
Government, Ministry of Corporate Affairs, seeking
its approval u/s. 297(1) of the erstwhile Companies
Act, 1956 for entering into contract with CMS Info
Systems Private Limited which is pending approval.

48. The Board of Directors of the Company at their
meeting held on May 25, 2023 had recommended
a final dividend of ''.1/- (one rupee only) per equity
share (i.e. 20% of face value of '' 5 per equity
share) for the financial year ended March 31,
2023. The dividend recommended by the Board of

Directors was approved by the shareholders at the
Annual General Meeting of the Company held on
September 20, 2023 and was subsequently paid.

49. During the year ended March 31,2024, the Holding
Company has acquired 100% shareholding in Matrix
Design and Industries Private Limited ("MDIPL”) for
a consideration of '' 32,306 lakhs settled through
a combination of cash consideration of '' 7,557
lakhs and preferential allotment of 27,31,366 equity
shares of Gokaldas Exports Limited at a price of ''
906.14 per share. The acquisition resulted in transfer
of control w.e.f. March 13, 2024 and accounted for in
accordance with Ind AS 103, Business Combination.

50. For the period/days of the respective covid
lockdowns imposed by the government during FY
2020-21, the Company had evaluated the various
directions, circulars and orders issued by relevant
government authorities regarding payment
of wages to employees, accordingly had paid
certain ex-gratia amount to eligible employees.
Management evaluated further directions, orders
issued by relevant government authorities and
understand that the matter should be settled
based on mutual discussion between relevant
stakeholders. Pending conclusion of such matter,
management believes that the Company continues
to be in compliance with the directives and will
reassess this periodically.

51. During the year ended March 31, 2024, the
Company had executed certain agreements with
Clean Max Enviro Energy Solutions Private limited and
Clean Max Celeste Private Limited (SPV), including
a share purchase agreement for investment in a
renewable Captive Generating Plant. This involved
an investment in a Special Purpose Vehicle (SPV),
a private limited company through an acquisition
of 26% stake through an investment of '' 315 lakhs
(Indian Rupees Three hundred and fifteen lakhs) by
way of an equity share capital contribution in the
SPV, the arrangement also involves certain power
purchase arrangements, basis the evaluation of
the terms of the aforementioned agreements, the
Company has assessed and classified this as an
investment and is recorded at fair value.

52. On April 23, 2024, the Company had raised
money by way of Qualified Institutional Placement
(''QIP'') and allotted 77,41,935 equity shares of
face value '' 5/- each to the eligible qualified
institutional buyers (''QIB'') at a price of '' 775/-per

share (including a premium of '' 770 per share)
aggregating to '' 60,000 lakhs. This issue was
made in accordance with SEBI (Issue of Capital
and Disclosure Requirements) Regulation, 2018. As
per the QIP placement document, the Company
has appropriately adjusted the expenses from
Securities Premium account. As of March 31, 2025,
the Company has utilised 100% of the QIP proceeds
towards the purpose for which the funds were
raised as per the QIP placement document. There
has been no deviation or variation in the utilisation
of these funds from the objects stated at the time
of the issue.

53. The Company has provided corporate
guarantees to financial institutions on behalf of its
wholly owned subsidiaries Gokaldas Exports FZCO
and Nava Apparels L.L.C. - FZ amounting to USD 23
million (March 31,2024: USD 34 million) and USD 7 million
(March 31, 2024: USD 7 million) respectively for loans
availed by them, towards the acquisition of ATRACO
Group entities. Additionally the Company has
advanced loans amounting to USD 7 million ('' 5,821
lakhs) (March 31, 2024: USD 7 million ('' 5,821 lakhs))
and USD 8 million ('' 6,652 lakhs) (March 31, 2024: USD
8 million ('' 6,652 lakhs)) to Gokaldas Exports FZCO
and Nava Apparels L.L.C. - FZ. respectively for the
said purposes.

54. As approved by the Board of Directors in their
meeting held on June 19, 2024, Company entered into
Investment Agreement and Securities Subscription
Agreement with BRFL Textiles Private Limited
(""BTPL"") for Subscription of Optionally Convertible
Debentures (OCDs). Upto the period ended March
31, 2025, the Company has subscribed to multiple
tranches aggregating to 17,50,000 OCDs (Face
value of '' 1,000 each, with a cumulative coupon
rate of 20.35% per annum compounded annually)
for a consideration of '' 17,500 lakhs. Additionally,
the terms of the agreements provide certain
rights and commitments on the Company towards
acquiring securities from existing shareholders of
BTPL subject to certain conditions. Accordingly,
the Company has recognised the investment of ''
17,500 lakhs as on March 31, 2025.

The Company has also recognised derivative
financial asset and liability against the call and
put option as on March 31, 2025 based on the
investment agreement entered between the
Company and BTPL.

55. During the year ended March 31, 2025, pursuant
to approval of the board of directors of the
Company, the Company has provided corporate
guarantees to financial institutions on behalf of
BTPL amounting to '' 275 Crores for securing the
loans availed by BTPL.

56. At the meeting held on February 07, 2025,
the Board of the Directors of the Company have
approved the acquisition of 9,37,69,382 Equity
shares and 1,57,89,474 Non-Cumulative Compulsorily
Convertible Preference Shares of BTPL, constituting
13.30% shareholding of BTPL on a fully diluted basis,
pursuant to the Investment Agreement dated June
19, 2024 entered by the Company with BTPL and the
existing shareholders of BTPL. Subsequent to the
year end, in April 2025, the Company has completed
the acquisition of the aforementioned instruments
for an aggregate consideration of '' 5,567.10 Lakhs.

57. During the year, the Company has subscribed
to one equity share of USD 1,000, fully paid up, of
Gokaldas Exports Corporation, USA (a wholly owned
subsidiary of Gokaldas Exports Limited).

58. During the period ended March 31, 2025,
employees exercised stock options aggregating
to 341,666 equity shares in accordance with the
Company''s stock option scheme as approved by
the Nomination and Remuneration Committee. The
Company has allotted 341,666 equity shares of '' 5
each, fully paid-up.

59. Additional regulatory information required by
Schedule III

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

b. The Company has borrowings from banks on
the basis of security of curre

---

Mar 31, 2024

(b) Terms/rights attached to equity shares

The rights, powers and preferences relating to each class of share capital and the qualifications, limitations and restrictions

thereof are contained in the Memorandum and Articles of Association of the Company. The principal rights are as below:

(i) The Company has only one class of equity shares having a par value of '' 5 per share. Each holder of equity is entitled to one vote per share.

(ii) The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in ensuing Annual General Meeting, except in case of interim dividend.

(iii) In event of liquidation of the Company, the holders of equity shares would be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. However no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

ii. Remaining performance obligations

All of the Company''s contracts are for the delivery of goods within the next 12 months for which the practical expedient in paragraph 121(a) of Ind AS 115 applies. As a result, the Company has not disclosed the information pertaining to remaining performance obligations as required by paragraph 120 of Ind AS 115.

Note 29(b): Corporate social responsibility expenditure

As per Section 135 of the Companies Act, 2013, a Company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. A CSR committee has been formed by the Company as per the Act. The funds are utilized through the year on the activities specified in Schedule VII of the Companies Act, 2013.

Notes on reason for variances:

31(a): Due to decreased current investment and increase in current liabilities mainly borrowings and trade payables.

31(b): Increased due to increase in borrowings attributed to working capital demand loans.

31(c): Decreased in DSCR due to repayment of borrowings and marginal drop in operating income.

31(d): Decreased due to increase in equity base on account of acquisition of Matrix clothing through preferential allotment of shares in the March 2024 from which the yield is yet to occur.

31(e): Lower inventory turns due to increased inventory holding with a lower revenue base. Inventory was built up to meet the subsequent months production.

31(f): Increase in receivables due to year-end shipments as opposed to lower revenue resulted in the lower receivable turns.

31(g): No major variance given the higher payables at the end of the year.

31(h): Lower due to significant increase in equity consequent to preferential allotment of shares to Matrix Clothing for acquisition.

31(i): Decreased due to lower profit after tax in relation to decrease in sales of finished goods.

31(j): Decreased due to lower earnings and increased capital investments relating to modernisation/upgradation of machinery, capacity expansion.

31(k): Decreased due to lower earnings before interest and tax consequent to decrease in sales of finished goods and increase in capital investment to complete new business acquisitions.

Disclosure about the nature of security: The loan is secured by hypothecation of Plant & Machinery and Equipments.

During the year and as on the balance sheet date, neither any of the promoters nor other shareholders nor directors nor any other persons/third parties (not restricted to related parties/KMP''s as defined in note 40) have given any personal guarantee or personal security for any non-current borrowings taken by the Company and is outstanding as at balance sheet date.

Indian rupee packing credit loan from banks carries interest at upto 6 months Marginal cost of funds based lending rate (''MCLR'') 0% to 0.75% (March 31, 2023: at upto 6 months Marginal cost of funds based lending rate (''MCLR'') 0% to 0.75%) and interest is payable monthly.

Indian rupee packing credit loans from all the banks are secured by first pari passu charge on current assets of the Company including hypothecation of inventory including stores and spares (including goods in transit/goods awaiting bank negotiation/goods with processors meant for export) and trade receivables and fixed assets of the Company.

Bill discounting from banks carries interest upto 6 months MCLR plus upto 0.75% for Indian Rupee bills discounting (March 31, 2023: interest upto 6 months MCLR plus upto 0.75% for Indian Rupee bills discounting) and interest is payable on transaction basis.

Bill discounting loans from all the banks are secured by first pari passu charge on current assets of the Company including hypothecation of inventory including stores and spares (including goods in transit/goods awaiting bank negotiation/ goods with processors meant for export) and trade receivables and fixed assets of the Company.

Working Capital demand loans from banks carries interest ranging from 8.30% to 8.75%.

Bank overdraft from banks carries interest linked to at 1 Year MCLR plus applicable spreads ranging from 0.75% to 3.00% p.a. (March 31, 2023: @ 6 months MCLR plus applicable spreads ranging from 0.75% to 2.50% p.a.). Interest is payable on monthly basis.

Bank overdraft is secured by pari passu hypothecation of inventory including stores and spares (including goods in transit/goods awaiting bank negotiation/goods with processors meant for export) and trade receivables of the Company and first pari passu charge on current assets of the Company.

The Company has further provided the following as the collateral to the Multiple Banking Arrangement (MBA) lenders towards the borrowings availed by the Company and as mentioned in the aforesaid notes.

a) Pari passu charge on certain factory land and building located in Bangalore and Mysore owned by the Company.

b) Pari passu charge on plant and machinery and certain movable assets of the Company.

The Company has availed the interest subvention during the years ended March 31, 2024 and March 31, 2023 under Interest Equalisation Scheme for pre and post shipment rupee export credit of Reserve Bank of India.

Repayment of current borrowings and Interest:

During the year and as on the balance sheet date, the Company has not defaulted in repayment of current borrowings and interest there on.

Loans from related parties:

During the year and as on the balance sheet date, the Company has not taken any borrowings from related parties.

33. INCOME TAX

The Company is subject to income tax in India on the basis of its standalone financial statements. The Company can claim tax exemptions/deductions under specific sections of the Income Tax Act, 1961 subject to fulfilment of prescribed conditions, as may be applicable. As per the Income Tax Act, 1961, the Company is liable to pay income tax based on higher of regular income tax payable or the amount payable based on the provisions applicable for Minimum Alternate Tax (MAT). MAT paid in excess of regular income tax during a year can be carried forward for a period of fifteen years and can be offset against future tax liabilities arising from regular income tax.

Section 115BAA has newly been inserted in the Income Tax Act, 1961 vide Taxation Laws (Amendment) Ordinance, 2019 (subsequently enacted on December 11, 2019 as The Taxation Laws (Amendment) Act, 2019) which provides a domestic Company with an irrevocable option to pay tax at a lower rate of 22% (effective rate of 25.168%) for any previous year relevant to the assessment year beginning on or after April 01, 2020. The lower rate shall be applicable subject to certain conditions, including that the total income should be computed without claiming specific deduction or exemptions. MAT would be inapplicable to companies opting to apply the lower tax rate.

Business loss can be carried forward for a maximum period of eight assessment years immediately succeeding the assessment year to which the loss pertains. Unabsorbed depreciation can be carried forward for an indefinite period.

34. EARNINGS PER SHARE (EPS)

Basic EPS amounts are calculated by dividing the profit/(loss) for the year attributable to equity holders of the Company by the weighted average number of equity shares outstanding during the year. Partly paid equity shares are treated as a fraction of an equity share to the extent that they were entitled to participate in dividends relative to a fully paid equity share during the reporting period. The weighted average number of equity shares outstanding during the period is adjusted for events such as bonus issue, bonus element in a rights issue, share split and reverse share split (consolidation of shares) that have changed the number of equity shares outstanding, without a corresponding change in resources.

Diluted EPS amounts are calculated by dividing the loss attributable to equity holders of the Company by the weighted average number of equity shares outstanding during the year plus the weighted average number of equity shares that would be issued on conversion of all the dilutive potential equity shares into equity shares.

35. SIGNIFICANT ACCOUNTING ESTIMATES AND ASSUMPTIONS

The preparation of the Company''s standalone financial statements requires management to make judgements, estimates and assumptions that affect the reported amount of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Actual results could differ from those estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

The estimates and the underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and future periods affected.

Significant judgements and estimates relating to the carrying values of assets and liabilities include provision for obsolete inventory, impairment of investments, impairment of non-current assets, provision for employee benefits and other provisions, fair value measurement of financial assets and liabilities, commitments and contingencies.

Estimates and assumptions

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

a. Income taxes

The Company''s tax jurisdiction is India. Significant judgements are involved in estimating budgeted profits for the purpose of paying advance tax, determining the provision for income taxes, including amount expected to be paid/recovered for uncertain tax positions.

b. Property, plant and equipment

Property, plant and equipment represent a significant proportion of the asset base of the Company. The charge in respect of periodic depreciation is derived after determining an estimate of an asset''s expected useful life and the expected residual value at the end of its life. The useful lives and residual values of Company''s assets are determined by the management at the time the asset is acquired and reviewed periodically, including at each financial year end. The lives are based on historical experience with similar assets as well as anticipation of future events, which may impact their life, such as changes in technical or commercial obsolescence arising from changes or improvements in production or from a change in market demand of the product or service output of the asset.

c. Right-of-use assets and lease liability

The Company has exercised judgement in determining the lease term as the non-cancellable term of the lease, together with the impact of options to extend or terminate the lease if it is reasonably certain to be exercised. Where the rate implicit in the lease is not readily available, an incremental borrowing rate is applied. This incremental borrowing rate reflects the rate of interest that the lessee would have to pay to borrow over a similar term, with a similar security, the funds necessary to obtain an asset of a similar nature and value to the right-of-use asset in a similar economic environment. Determination of the incremental borrowing rate requires estimation.

d. Impairment of non-current asset including investments

Determining whether investment are impaired requires an estimation of the value in use of the individual investment or the relevant cash generating units (''CGU''). The value in use calculation is based on DCF model over the estimated useful

life of the CGU''s. Further, the cash flow projections are based on estimates and assumptions relating to sale price/customer orders on hand, efficiency in operations etc.

e. 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.

f. Contingencies

Contingent liabilities may arise from the ordinary course of business in relation to claims against the Company, including legal and contractual claims. By their nature, contingencies will be resolved only when one or more uncertain future events occur or fail to occur. The assessment of the existence, and potential quantum, of contingencies inherently involves the exercise of significant judgement and the use of estimates regarding the outcome of future events.

In respect of bank guarantees provided by the Company to third parties, the Company considers that it is more likely than not that such an amount will not be payable under the guarantees provided.

g. Defined benefit obligations

The cost of the defined benefit gratuity plan 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.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans operated in India, the management considers the interest rates of government bonds.

The mortality rate is based on publicly available mortality tables for India. Those mortality tables tend to change only at interval in response to demographic changes. Future salary increases and gratuity increases are based on expected future inflation rates.

Further details about gratuity obligations are given in note 39.

h. Provision for obsolete inventory

Inventory write downs are accounted, considering the nature of inventory, ageing, liquidation plan and net realisable value. These write downs are recognised as an expense and are included in "(Increase)/decrease in inventories of finished goods and work-in-progress" in the statement of profit and loss.

i. Expected credit losses on financial assets

The impairment provisions of financial assets and contract assets are based on assumptions about risk of default and expected timing of collection. The Company uses judgment in making these assumptions and selecting the inputs to the impairment calculation, based on the Company''s past history of collections, customer''s creditworthiness, existing market conditions as well as forward looking estimates at the end of each reporting period.

j. Non-current assets held for sale

Non-current assets held for sale are measured at the lower of carrying amount or fair value less costs to sell. Determination of fair value involves management estimate. Fair value of assets held for sale is determined using valuation technique involving unobservable inputs. Judgement is involved in estimating future cash flow, determining discount rate etc.

k. Employee share based payments

Company''s share based payments to employees primarily consist of Employee Stock Option Plans (''ESOPs'') and Restricted Stock Units (''RSUs''). The share-based compensation expense is determined based on the Company''s estimate of fair value at grant date of the ESOPs/RSUs granted. The Company estimates fair value of ESOPs/RSUs using Black-Scholes-Merton (''BSM'') option pricing model. The BSM model is based on various assumptions including expected volatility, expected life, interest rate.

l. Revenue from Export incentives

For measurement of income from the export incentives, significant estimates and judgments are made which include, eligibility of the export transaction for the claim, the timing of processing such claim and its subsequent realization and also the rate notified/to be notified by the government authorities.

36. SEGMENT INFORMATION-DISCLOSURE PURSUANT TO IND AS 108 ‘OPERATING SEGMENT(a) Basis of identifying operating segments

Operating segments are identified as those components of the Company (a) that engage in business activities to earn revenues and incur expenses (including transactions with any of the Company''s other components); (b) whose operating results are regularly reviewed by the Company''s Chief Executive Officer to make decisions about resource allocation and performance assessment and (c) for which discrete financial information is available.

The accounting policies consistently used in the preparation of the financial statements are also applied to record revenue and expenditure in individual segments. Assets, liabilities, revenues and direct expenses in relation to segments are categorised based on items that are individually identifiable to that segment, while other items, wherever allocable, are apportioned to the segments on an appropriate basis. Certain items are not specifically allocable to individual segments as the underlying services are used interchangeably.

(b) The Company is engaged in a single business segment of sale of garment and hence no additional disclosures are required.

37. COMMITMENTS AND CONTINGENCIESI. Leases

The Company evaluates if an arrangement qualifies to be a lease as per the requirements of Ind AS 116. Identification of a lease requires significant judgement. The Company uses judgement in assessing whether a contract (or part of contract) include a lease, the lease term (including anticipated renewals), the applicable discount rate, variable lease payments whether are insubstance fixed. The judgement involves assessment of whether the asset included in the contract is a fully or partly identified asset based on the facts and circumstances, whether the contract include a lease and nonlease component and if so, separation thereof for the purpose of recognition and measurement, determination of lease term basis, inter alia the non-cancellable period of lease and whether the lessee intends to opt for continuing with the use of the asset upon the expiry thereof, and whether the lease payments are fixed or variable or a combination of both. The Company records the lease liability at the present value of the lease payments discounted at the incremental borrowing rate.

The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the obligations related to lease liabilities as and when they fall due.

Rental charges recorded for short-term leases during the year is '' 1,544.18 Lakhs (31 March 2023: '' 1,400.67 Lakhs).

II. Contingencies

In the ordinary course of business, the Company faces claims and assertions by various parties. The Company assesses such claims and assertions and monitors the legal environment on an ongoing basis with the assistance of external legal counsel, wherever necessary. The Company records a liability for any claims where a potential loss is probable and capable of being estimated and discloses such matters in its financial statements, if material. For potential losses that are considered possible, but not probable, the Company provides disclosure in the financial statements but does not record a liability in its accounts unless the loss becomes probable.

(i) The aforementioned demand amounts under dispute are as per the demands from various authorities for the respective periods and have not been adjusted to include further interest and penalty leviable, if any, at the time of final outcome of the appeals.

(ii) The Company is also involved in various other litigations and claims other than as tabulated above, the impact of which is not quantifiable. These cases are pending with various courts/forums and are scheduled for hearings. After considering the circumstances and legal evaluation thereon, the Company''s management believes that these cases are not tenable/ material and accordingly have not made any further adjustments, other than amount already provided in the standalone financial statements.

IV. Corporate guarantee

The Company has provided corporate guarantee to the banks for the credit limits obtained by the wholly owned subsidiaries namely "Sri Susamyuta Knits Private Limited", "Gokaldasexports Acharpura Private Limited", "Gokaldas Exports FZCO" and "Nava Apparels L.L.C-FZ".

38. HEDGING ACTIVITIES

Cash flow hedges

Foreign exchange forward contracts measured at fair value through OCI are designated as hedging instruments in cash flow hedges of forecast sales in foreign currency. These forecast transactions are highly probable, and they comprise about 100% of the Company''s total expected sales in foreign currency.

The foreign exchange forward contract balances vary with the level of expected foreign currency sales and changes in foreign exchange forward rates.

Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness assessments to ensure that an economic relationship exists between the hedged item and hedging instrument, including whether the hedging instrument is expected to offset changes in cash flows of hedged items.

The cash flow hedges of the expected future sales during the year ended March 31, 2024 and March 31, 2023 were assessed to be highly effective and a net unrealised gain/loss relating to hedging instrument is included in OCI. The amounts retained in OCI at March 31, 2024 are expected to mature and affect the statement of profit and loss during the year ended March 31, 2025 and March 31, 2026.

Details relating to impact of cash flow hedge with respect to foreign currency risk arising from sales in statement of profit and loss for the year ended as on:

The Company offsets a financial asset and financial liability when it currently has a legally enforceable right to set off the recognized amounts and the Company intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.

39. GRATUITY AND OTHER POST-EMPLOYMENT BENEFIT PLANS

The Company has a defined benefit gratuity plan. The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the Payment of Gratuity Act, 1972, every employee who has completed four years and 240 days or more of service gets gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The level of benefits provided depends on the member''s length of service and salary at retirement age. The scheme is funded with Life Insurance Corporation of India in the form of a qualifying insurance policy.

The following tables summarise the components of net benefit expenses recognised in the standalone statement of profit or loss and the funded status and amounts recognised in the standalone balance sheet for gratuity benefit.

1. Plan assets are fully represented by balance with the Life Insurance Corporation of India.

2. The expected return on plan assets is determined considering several applicable factors mainly the composition of the plan assets held, assessed risks of asset management, historical results of the return on plan assets and the Company''s policy for plan asset management.

3. The estimates of future salary increase in compensation levels, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

4. As per Indian Assured Lives Mortality (2012-14) ultimate.

5. Refer note 17 for current and non-current classification.

42. SHARE-BASED PAYMENTS

The Company''s employee benefit plans are as summarised below:

In September 2010, the shareholders of the Company approved Stock Option Plan (ESOP 2010) in accordance with the guidelines issued by the Securities and Exchange Board of India (SEBI) for Employees Stock Options Plan. The plan covered all employees of the Company including employees of subsidiaries, directors and provided for the issue of 1,718,800 shares of '' 5 each.

Further, the shareholders of the Company by way of special resolution dated August 26, 2018 approved Employee Restricted Stock Unit Plan (RSU 2018) in accordance with the guidelines issued by the SEBI for employees Stock Options Plan. The plan covered all employees of the Company including employees of subsidiaries, directors and provided for the issue of 2,133,040 shares of '' 5 each.

Further, the shareholders of the Company by way of special resolution dated April 03, 2022 approved Stock Option Plan (ESOP 2022) in accordance with the guidelines issued by the SEBI for employees Stock Options Plan. The plan covered all employees of the Company including employees of subsidiaries, directors and provided for the issue of 4,500,000 shares of '' 5 each (increased from 3,000,000 to 4,500,000 options vide special resolution passed by the shareholders on February 29, 2024).

The fair value of the stock options is estimated at the grant date using a Black-Scholes-Merton (''BSM'') option pricing model. The BSM option pricing model incorporates various assumptions including expected volatility, expected life and interest rates. The Company recognises share based compensation cost as expense over the requisite service period.

The contractual term of each option granted is ranging from two to three years. There are no cash settlement alternatives. The Company does not have a past practice of cash settlement for these share options.

The weighted average share price at the date of exercise of the options during the period is not applicable (March 31, 2023: '' 376.27).

The weighted average remaining contractual life for the share options outstanding is 8.53 (March 31, 2023: 3.17 years)

The weighted average fair value of options granted during the year was '' 267.80 (March 31, 2023: '' Nil)

The range of exercise prices for options outstanding at the end of the year was '' 72.55 to '' 315.44 (March 31, 2023: '' 60.95 to '' 85.96).

The expected life of the share options is based on historical data and current expectations and is not necessarily indicative of exercise patterns that may occur. The expected volatility reflects the assumption that the historical volatility over a period similar to the life of the options is indicative of future trends, which may not necessarily be the actual outcome.

43. DISCLOSURES ON FINANCIAL INSTRUMENTS

This Section gives an overview of the significance of financial instruments for the Company and provides additional information on balance sheet items that contain financial instruments.

The details of significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised in respect of each class of financial asset and financial liability are disclosed in Note 2.2 (b) and Note 2.2 (o) to the standalone financial statements.

(b) Fair value hierarchy

The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into Level 1 to Level 3, as described below:

Quoted prices in an active market (Level 1):

This level of hierarchy includes financial assets that are measured by reference to quoted prices (unadjusted) in active markets for identical assets or liabilities. This category consists of investment in quoted equity shares, and mutual fund investments.

Valuation techniques with observable inputs (Level 2):

This level of hierarchy includes financial assets and liabilities, measured using inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).

Valuation techniques with significant unobservable inputs (Level 3):

This level of hierarchy includes financial assets and liabilities measured using inputs that are not based on observable market data (unobservable inputs). Fair values are determined in whole or in part, using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data.

(i) Short-term financial assets and liabilities are stated at carrying value which is approximately equal to their fair value.

Fair value of loans (security deposits) having a carrying amount of '' 2,978.91 lakhs as at March 31,2024 (March 31,2023: '' 2,657.01lakhs) was '' 2,978.91 lakhs (March 31, 2023: '' 2,657.01)

(ii) Foreign exchange forward contracts are fair valued using market observable rates and published prices together with forecasted cash flow information where applicable.

(iii) Management uses its best judgement in estimating the fair value of its financial instruments. However, there are inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates presented above are not necessarily indicative of the amounts that the Company could have realised or paid in sale transactions as of respective dates. As such, fair value of financial instruments subsequent to the reporting dates may be different from the amounts reported at each reporting date.

(iv) There have been no transfers between Level 1, Level 2 and Level 3 during the year ended March 31, 2024 and March 31, 2023.

(c) Financial risk management objectives and policies

In the course of its business, the Company is exposed primarily to fluctuations in foreign currency exchange rates, interest rates, equity prices, liquidity and credit risk, which may adversely impact the fair value of its financial instruments. The Company has a risk management policy which not only covers the foreign exchange risks but also other risks associated with the financial assets and liabilities such as interest rate risks and credit risks. The risk management policy is approved by the Board of Directors. The risk management framework aims to:

(i) create a stable business planning environment by reducing the impact of currency and interest rate fluctuations on the Company''s business plan;

(ii) achieve greater predictability to earnings by determining the financial value of the expected earnings in advance.

Market risk

Market risk is the risk of any loss in future earnings, in realisable fair values or in future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in interest rates, foreign currency exchange rates, equity price fluctuations, liquidity and other market changes. Future specific market movements cannot be normally predicted with reasonable accuracy.

(i) Market risk - Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s debt obligations with floating interest rates. The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings.

(ii) Market risk- Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s operating and financing activities. The Company''s exposure to foreign currency changes from investing activities is not material.

The Company manages its foreign currency risk by hedging transactions that are expected to occur within a maximum 12 months period for hedges of forecasted sales.

As at March 31, 2024 and March 31, 2023, the Company hedged '' 161,647.03 lakhs (USD 1,910.00 lakhs) and '' 143,037.06 lakhs (USD 1,731.16 lakhs) respectively of it expected foreign currency sales. Those hedged sales were highly probable at the reporting date. This foreign currency risk is hedged by using foreign currency forward contracts.

The sensitivity analysis has been based on the composition of the Company''s financial assets and liabilities at March 31, 2024 and March 31,2023. The period end balances are not necessarily representative of the average debt outstanding during the period.

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. Financial instruments that are subject to credit risk and concentration thereof principally consist of trade receivables, loans receivables, investments and cash and cash equivalents.

The carrying value of financial assets represents the maximum credit risk. The maximum exposure to credit risk was '' 85,024.24 lakhs, '' 64,999.67 lakhs, as at March 31, 2024 and March 31, 2023 respectively, being the total carrying value of trade receivables, balances with bank, bank deposits, investments other than investments in subsidiaries and other financial assets.

Customer credit risk is managed by each business unit subject to the Company''s established policy, procedures and control relating to customer credit risk management. An impairment analysis is performed at each reporting date on an individual basis for major customers. The Company does not hold collateral as security.

With respect to Trade receivables, the Company has constituted the terms to review the receivables on periodic basis and to take necessary mitigations, wherever required. The Company creates allowance for all unsecured receivables based on lifetime

expected credit loss based on a provision matrix. The provision matrix takes into account historical credit loss experience and is adjusted for forward looking information. The expected credit loss allowance is based on the ageing of the receivables that are due and rates used in the provision matrix.

Credit risk from balances with bank and financial institutions is managed by the Company''s treasury department in accordance with the Company''s policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterparty''s potential failure to make payments.

Liquidity risk

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company has obtained fund and non-fund based working capital lines from various banks. The Company invests its surplus funds in bank fixed deposit and government securities, which carry no or low market risk.

The Company monitors its risk of a shortage of funds on a regular basis. The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts, bank borrowings etc. The Company assessed the concentration of risk with respect to refinancing its debt and concluded it to be low.

The following table shows a maturity analysis of the anticipated cash flows excluding interest obligations for the Company''s financial liabilities on an undiscounted basis, which therefore differ from both carrying value and fair value:

Equity Price risk

Equity Price Risk is related to the change in fair value of the investments in equity securities. Company''s investments in equity securities, including investments held for sale, are subject to changes in fair value of investments. The carrying value of investments represents the maximum equity risk. The maximum exposure to equity price risk was '' 34,807.65 lakhs and '' 2,074.58 lakhs as on March 31, 2024 and March 31, 2023 respectively, being the carrying value (net of provisions) of investments in unquoted equity shares. The risk is arising primarily on account of the Company''s investment in a foreign associate.

44. CAPITAL MANAGEMENT

The Company''s capital management is intended to create value for shareholders by facilitating the meeting of long term and short term goals of the Company.

The Company determines the amount of capital required on the basis of annual business plan coupled with long term and short term strategic investment and expansion plans. The funding needs are met through equity, cash generated from operations and sale of certain assets, long term and short term bank borrowings and issue of securities.

For the purpose of the Company''s capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders of the Company.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is total debt divided by total capital plus total debt. The Company''s policy is to keep the gearing ratio at an optimum level to ensure that the debt related covenant are complied with.

In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no material breaches in the financial covenants of any interest-bearing loans and borrowing for all the periods presented.

No changes were made in the objectives, policies or processes for managing capital during the years ended March 31,2024 and March 31, 2023.

45. The Company is in process of taking necessary steps to comply with the Transfer Pricing requirements relating to the preparation & maintenance of the Transfer Pricing documentation with respect to the specified domestic transactions entered into by the Company during financial year ended March 31, 2024. The Management is of the opinion that the specified domestic transactions are at arm''s length and hence the aforesaid legislation will not have any impact on the standalone financial statements, particularly on the amount of tax expense and that of provision for taxation.

46. The Company assessed the fair value less cost of sale of the investment in an associate held for sale. Change in the regulatory environment and the market conditions effecting the associate has adversely affected the fair value of the Company''s investment. The Company has written down the carrying value of the asset by recognizing an impairment loss of '' 626.56 lakhs as an exceptional charge during the year ended March 31, 2019. The Company continues to make efforts to mitigate the loss by selling such investment in the near future, which could result in a partial or full reversal

of the impairment loss. Further to related developments during the year on this matter, including claims filed by the Company for the recovery, the Company has reassessed that it is appropriate to reclassify the Investment from ''Associate'' to ''Others''.

47. The Company had filed petition with the Company Law Board for compounding of offence u/s. 297 of the erstwhile Companies Act, 1956 for the transactions entered with CMS Info Systems Private Limited between July 2009 to October 2011 and as at date, the petition is pending with the Company Law Board.

For periods subsequent to October 2011, the Company had filed an application with Central Government, Ministry of Corporate Affairs, seeking its approval u/s. 297(1) of the erstwhile Companies Act, 1956 for entering into contract with CMS Info Systems Private Limited which is pending approval.

48. The Board of Directors of the Company at their meeting held on May 25, 2023 had recommended a final dividend of '' 1/- (one rupee only) per equity share (i.e. 20% of face value of '' 5 per equity share) for the financial year ended March 31, 2023. The dividend recommended by the Board of Directors was approved by the shareholders at the Annual General Meeting of the Company held on September 20, 2023 and was subsequently paid.

49. During the year ended March 31, 2023, pursuant to the approval of the Board of Directors, the Company had concluded the sale of one of its building on leasehold land and other assets. The transaction had resulted in a gain of '' 605.03 lakhs, which was disclosed as an exceptional item for that year.

50. During the year ended March 31, 2024, the Holding Company has acquired 100% shareholding in Matrix Design and Industries Private Limited ("MDIPL") for a consideration of '' 32,306 lakhs settled through a combination of cash consideration of '' 7,557 lakhs and preferential allotment of 27,31,366 equity shares of Gokaldas Exports Limited at a price of 906.14 per share. The acquisition resulted in transfer of control w.e.f. March 13, 2024 and accounted for in accordance with Ind AS 103, Business Combination.

51. For the period/days of the respective covid lockdowns imposed by the government during FY 2020-21, the Group had evaluated the various directions, circulars and orders issued by relevant government authorities regarding payment of wages to employees, accordingly had paid certain ex-gratia amount to eligible employees. Management evaluated further directions, orders issued by relevant government authorities and understand that the matter should be settled based on mutual discussion between relevant stakeholders. Pending conclusion of such matter, management believes that the Company continues to be in compliance with the directives and will reassess this periodically.

52. During the year ended March 31, 2024, the Company had executed certain agreements with Clean Max Enviro Energy Solutions Private limited and Clean Max Celeste Private Limited (SPV), including a share purchase agreement for investment in a renewable Captive Generating Plant. This involved an investment in a Special Purpose Vehicle (SPV), a private limited Company through an acquisition of 26% stake through an investment of '' 315 lakhs (Indian Rupees Three hundred and fifteen lakhs) by way of an equity share capital contribution in the SPV, the arrangement also involves certain power purchase arrangements, basis the evaluation of the terms of the aforementioned agreements, the Company has assessed and classified this as an investment and is recorded at fair value.

53. Subsequent to the year ended March 31, 2024, on April 24, 2024, the Company raised money by way of Qualified Institutional Placement (''QIP'') and allotted 77,41,935 equity shares of face value '' 5/- each to the eligible qualified institutional buyers (''QIB'') at a price of '' 775/-per share (Including a premium of '' 770 per share) aggregating to '' 60,000 lakhs on April 23, 2024. This issue was made in accordance with SEBI (Issue of Capital and Disclosure Requirements) Regulation, 2018.

54. During the year ended March 31, 2024, the Company has provided corporate guarantees to financial institutions on behalf of its wholly owned subsidiaries Gokaldas Exports FZCO and Nava Apparels L.L.C. - FZ amounting to USD 34 million and USD 7 million respectively for loans availed by them, towards the acquisition of ATRACO Group entities. Additionally the Company has advanced loans amounting to USD 7 million ('' 5,821 lakhs) and USD 8 million ('' 6,652 lakhs) to Gokaldas Exports FZCO and Nava Apparels L.L.C. - FZ.

55. ADDITIONAL REGULATORY INFORMATION REQUIRED BY SCHEDULE III

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

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

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

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

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

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

g. During the year the Company (Ultimate Beneficiary) provided loans (refer note 54) to its wholly owned subsidiaries ''Gokaldas Exports FZCO'' and ''Nava Apparels LLC'' (Intermediaries). The terms of these transactions have been documented in writing. On January 03, 2024, the Intermediaries directly invested in other entities identified by the Ultimate Beneficiary for the purpose of acquiring the ATRACO group. There has been no violation or non-compliance with the relevant provisions of the Foreign Exchange Management Act, 1999 (42 of 1999), Prevention of Money-Laundering act, 2002 (15 of 2003), or the Companies Act, 2013 in relation to these transactions.

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

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

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

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

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

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

56. UNDISCLOSED INCOME

The Company does not have any undisclosed income which is not recorded in the books of account that has been surrendered or disclosed as income during the year March 31, 2024 and March 31, 2023 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.

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

58. The Indian Parliament had approved the Code on Social Security, 2020. The Ministry of Labour and Employment has notified the draft rules under the Code on Social Security,

2020 on November 13, 2020 inviting objections and suggestions, if any, from the stakeholders. The draft rules provide for operationalization of provisions in the Code on Social Security, 2020 relating to Employees'' Provident Fund, Employees'' State Insurance Corporation, Gratuity, Maternity Benefit, Social Security and Cess in respect of Building and Other Construction Workers, Social Security for Unorganised Workers, Gig Workers and Platform Workers.

The Group will assess the impact and will give appropriate accounting treatment in its financial statements in the period in which the Code on Social Security, 2020 (including the related rules framed thereunder) becomes effective.

59 . The statement of audited standalone financial statements for the year ended March 31, 2024 have been reviewed by the Audit Committee in their meeting on May 26, 2024 and approved by the Board of Directors in their meeting held on May 26, 2024.

60. Certain amounts (currency value or percentages) shown in the various tables and paragraphs included in the standalone financial statements have been rounded off or truncated as deemed appropriate by the management of the Company.

61. Previous period/year''s figures have been regrouped/ reclassified, wherever necessary to confirm to the current period/year''s classification.

---

Mar 31, 2023

(b) Terms/rights attached to equity shares

The rights, powers and preferences relating to each class of share capital and the qualifications, limitations and restrictions

thereof are contained in the Memorandum and Articles of Association of the Company. The principal rights are as below:

(i) The Company has only one class of equity shares having a par value of '' 5 per share. Each holder of equity is entitled to one vote per share.

(ii) The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in ensuing Annual General Meeting, except in case of interim dividend.

(iii) In event of liquidation of the Company, the holders of equity shares would be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. However no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

Repayment of non current borrowings and Interest:

During the year and as on the balance sheet date, the Company has not defaulted in repayment of non-current borrowings and interest there on.

Loans from related parties:

During the year and as on the balance sheet date, the Company has not taken any non-current borrowings from related parties.

Disclosure about the nature of security:

The loan is secured by pari passu (i) hypothecation of inventory including stores and spares (including goods in transit/goods awaiting bank negotiation/goods with processors meant for export) and (ii) Current assets (including trade receivables) of the Company (iii) hypothecation of Plant & Machinery and Equipments and Land & Buildings.

During the year and as on the balance sheet date, neither any of the promoters nor other shareholders nor directors nor any other persons/third parties (not restricted to related parties/KMP''s as defined in note 39) have given any personal guarantee or personal security for any non-current borrowings taken by the Company and is outstanding as at balance sheet date.

Note 15 (B): Notes on current borrowings:

¹ Indian rupee packing credit loan from a bank of '' 2,000 Lakhs (March 31, 2022: '' 2,000 Lakhs) carries interest @ Marginal cost of funds based lending rate (''MCLR'') 0.75% (March 31, 2022: MCLR 0.75%) and interest is payable monthly. The loan is secured by first pari passu charge on current assets of the Company. Out of the above, '' 300 Lakhs is outstanding as at March 31, 2023 (March 31, 2022: '' Nil). Also refer note 15(B) ¹¹ and ¹² below.

² Indian rupee packing credit loan from a bank of ''.2500 Lakhs (March 31, 2022: '' Nil) carries interest @Marginal cost of funds based lending rate (''MCLR'') (March 31, 2022: MCLR) and interest is payable monthly. The loan is secured by pari passu (i) hypothecation of inventory including stores and spares (including goods in transit/goods awaiting bank negotiation/goods with processors meant for export) and (ii) trade receivables of the Company. Out of the above, '' 200 Lakhs is outstanding as at March 31, 2023 (March 31, 2022:'' Nil). Also refer note 15(B) ¹¹ and ¹² below.

³ Indian rupee packing credit loan from a bank of '' 3,000 Lakhs (March 31, 2022: '' 3,000) carries interest @Marginal cost of funds based lending rate (''MCLR'') (March 31, 2022: MCLR) and interest is payable monthly. The loan is secured by pari passu (i) hypothecation of inventory including stores and spares (including goods in transit/goods awaiting bank negotiation/goods with processors meant for export) and

(ii) trade receivables of the Company. Out of the above, '' 200 Lakhs is outstanding as at March 31, 2023 (March 31, 2022:'' Nil). Also refer note 15(B) ¹¹ and ¹² below.

⁴ Indian rupee packing credit loan from a bank of '' 7,500 Lakhs (March 31, 2022: '' 7,500 Lakhs) carries interest rate linked to @3 months Marginal cost of funds based lending rate('' MCLR'') plus applicatble spread of 0.45% p.a for Indian rupee packing credit loan and 6 months SOFR for foreign currency packing credit loan plus applicable spread of 2% p.a (March 31, 2022: @3 months MCLR for Indian rupee packing credit loan plus applicable spred of 0.45% p.a and 6 months SOFR for foreign currency packing credit loan plus applicable spread of 2% p.a). Interest on loans is payable monthly. These loans are secured by pari passu (i) hypothecation of inventory including stores and spares (including goods in transit/goods awaiting bank negotiation/goods with processors meant for export) and (ii) trade receivables and current assets and fixed assets of the Company. Out of the above, '' 200 Lakhs is outstanding as at March 31, 2023 (March 31, 2022: ''.1,000 Lakhs) refer note 15(B) ¹¹ and ¹² below.

⁵ Indian rupee packing credit loan from a bank of '' 6,000 Lakhs (March 31, 2022: '' 6,000 Lakhs) carries interest rate linked to @ 6 months Marginal cost of funds based lending rate (''MCLR'') plus applicable spread of 0.55% p.a and 6 months SOFR for foreign currency packing credit loan plus applicable spread of 2% p.a (March 31, 2022: @ 6 months MCLR plus applicable spread of 0.55% and 6 months SOFR for foreign currency packing credit loan plus applicable spread of 2% p.a) Interest on loans is payable monthly. These loans are secured by pari passu (i) hypothecation of inventory including stores and spares (including goods in transit/goods awaiting bank negotiation/goods with processors meant for export) and (ii) trade receivables and current assets and fixed assets of the Company. Out of the above, '' Nil is outstanding as at March 31, 2023 (March 31, 2022: '' 500 Lakhs). Also refer note 15(B) ¹¹ and ¹² below.

⁶ Indian rupee packing credit loan from a bank of '' 2,000 Lakhs (March 31, 2022: '' 2,000 Lakhs) carries interest rate linked to @ 6 months Marginal cost of funds based lending rate (''MCLR'') (March 31, 2022: @ 6 months MCLR). Interest on loans is payable monthly. These loans are secured by pari passu (i) hypothecation of inventory including stores and spares (including goods in transit/goods awaiting bank negotiation/goods with processors meant for export) and (ii) trade receivables and current assets and fixed assets of the Company. Out of the above, '' Nil is outstanding as at March 31, 2023 (March 31, 2022: '' Nil). Also refer note 15(B) ¹¹ and ¹² below.

⁷ Bill discounting from a bank of '' 3,000 Lakhs (March 31, 2022: '' 3,000 Lakhs) carries interest @SOFR plus applicable spread of 2.50% p.a. for foreign currency bills discounting and @ MCLR plus 0.75% for Indian Rupee bills discounting (March 31, 2022: LIBOR plus applicable spread of 2.50% p.a.

for foreign currency bills discounting and @ MCLR plus 0.75% for Indian Rupee bills discounting) and interest is payable on transaction basis. The loan is secured by first pari passu charge on current assets of the Company. Out of the above, '' Nil is outstanding as at March 31, 2023 (March 31, 2022: '' 2,868.15 Lakhs). Also refer note 15(B) ¹¹ and ¹² below.

⁸ Bill discounting from a bank of '' 2,000 Lakhs (March 31, 2022: '' 2,000 Lakhs) carries interest @Marginal cost of funds based lending rate (''MCLR'') for Indian Rupee bills discounting (March 31, 2022: @MCLR for Indian Rupee bills discounting) and interest is payable on transaction basis. The loan is secured by pari passu (i) hypothecation of inventory including stores and spares (including goods in transit/goods awaiting bank negotiation/goods with processors meant for export) and (ii) trade receivables of the Company. Out of the above, '' Nil is outstanding as at March 31,2023 (March 31,2022: '' 453.45 Lakhs). Also refer note 15(B) ¹¹ and ¹² below.

⁹ Bill discounting from a bank of ''.1,500 Lakhs (March 31, 2022: '' 1,500 Lakhs) carries interest rate linked to @3 months Marginal cost of fund based lending rate plus applicable spread of 0.45% p.a ("MCLR'')for Indian rupee bill discounting loan and @6 months SOFR plus 2% for foreign currency bill discounting loan (March 31, 2022: @3 months MCLR for Indian rupee bill discounting loan plus applicable spread of 0.45% p.a and @6 months SOFR plus 2% p.a for foreign currency bill discounting loan). Interest on the above loans is payable on transaction basis. These loans are secured by pari passu charge on (i) current assets of the Company; and (ii) Fixed assets of the Company. Out of the above, '' Nil is outstanding as at March 31,2023 (March 31,2022: '' 780.68 Lakhs). Also refer note 15(B) ¹¹ and ¹² below.

¹⁰ Bill discounting from a bank of '' 2,500 Lakhs (March 31, 2022: '' 2,500 Lakhs) carries interest rate linked to @6 months Marginal cost of fund based lending rate plus applicable spread of 0.55% p.a (''MCLR'') for Indian rupee bill discounting loan and 6 months SOFR for foreign currency bill discounting loan plus applicable spread of 2% p.a (March 31,2022: @6 months MCLR for Indian rupee bill discounting loan plus applicable spread of 0.55% p.a and 6 months SOFR plus applicable spread of 2% p.a for foreign currency bill discounting loan). Interest on the above loans is payable on transaction basis.

These loans are secured by pari passu charge on (i) current assets of the Company; and (ii) Fixed assets of the Company. Out of the above, '' Nil is outstanding as at March 31, 2023 (March 31, 2022: ''.Nil). Also refer note 15(B) ¹¹ and ¹² below.

¹¹ Bank overdraft from banks of '' 2,500 Lakhs (March 31, 2022: '' 2,500 Lakhs) carries interest linked to @6 month MCLR plus applicable spreads ranging from 0.75% to 2.50% p.a. (March 31, 2022: @6 month MCLR plus applicable spreads ranging from 0.75% to 2.50% p.a. ). Interest on the above loan is payable on monthly basis. These loans are secured by pari passu (i) hypothecation of inventory including stores and spares (including goods in transit/goods awaiting bank negotiation/goods with processors meant for export) and (ii) trade receivables of the Company for a bank and first pari passu charge on current assets of the Company. Out of the above, '' Nil is outstanding as at March 31, 2023 (March 31, 2022: '' Nil). Also refer note 15(B)¹² below.

¹² The Company has further provided the following as the collateral to the Multiple Banking Arrangement (MBA) lenders towards the borrowings availed by the Company and as mentioned in the aforesaid note 15(B).

a) Pari passu charge on certain factory land and building located in Bangalore and Mysore owned by the Company and its subsidiary,

b) Pari passu charge on plant and machinery and certain movable assets of the Company

¹³ The Company has availed the interest subvention during the years ended March 31, 2023 and March 31, 2022 under Interest Equalisation Scheme for pre and post shipment rupee export credit of Reserve Bank of India.

¹⁴ Repayment of current borrowings and Interest:

During the year and as on the balance sheet date, the Company has not defaulted in repayment of current borrowings and interest there on.

¹⁵ Loans from related parties:

During the year and as on the balance sheet date, the Company has not taken any borrowings from related parties.

Apart from geographic location of customers; the characteristics of Company''s revenue are uniform in terms of product type, contract counterparties, timing of transfer of goods, uncertainty of revenue and cashflows etc. Therefore, disaggregation of revenue as per these categories is not applicable.

ii. Remaining performance obligations

All of the Company''s contracts are for the delivery of goods within the next 12 months for which the practical expedient in paragraph 121(a) of Ind AS 115 applies. As a result, the Company has not disclosed the information pertaining to remaining performance obligations as required by paragraph 120 of Ind AS 115.

iii. Estimates and assumptions

There are no significant estimates and assumptions.

Note 29 (b): Corporate social responsibility expenditure

As per Section 135 of the Companies Act, 2013, a Company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. A CSR committee has been formed by the Company as per the Act. The funds are utilized through the year on the activities specified in Schedule VII of the Companies Act, 2013.

32. INCOME TAX

The Company is subject to income tax in India on the basis of its Standalone Financial Statements. The Company can claim tax exemptions/deductions under specific sections of the Income Tax Act, 1961 subject to fulfilment of prescribed conditions, as may be applicable. As per the Income Tax Act, 1961, the Company is liable to pay income tax based on higher of regular income tax payable or the amount payable based on the provisions applicable for Minimum Alternate Tax (MAT). MAT paid in excess of regular income tax during a year can be carried forward for a period of fifteen years and can be offset against future tax liabilities arising from regular income tax.

Section 115BAA has newly been inserted in the Income Tax Act, 1961 vide Taxation Laws (Amendment) Ordinance, 2019

(subsequently enacted on December 11,2019 as The Taxation Laws (Amendment) Act, 2019) which provides a domestic Company with an irrevocable option to pay tax at a lower rate of 22% (effective rate of 25.168%) for any previous year relevant to the assessment year beginning on or after April 01, 2020. The lower rate shall be applicable subject to certain conditions, including that the total income should be computed without claiming specific deduction or exemptions. MAT would be inapplicable to companies opting to apply the lower tax rate.

Business loss can be carried forward for a maximum period of eight assessment years immediately succeeding the assessment year to which the loss pertains. Unabsorbed depreciation can be carried forward for an indefinite period.

33. EARNINGS PER SHARE (EPS)

Basic EPS amounts are calculated by dividing the profit/(loss) for the year attributable to equity holders of the Company by the weighted average number of equity shares outstanding during the year. Partly paid equity shares are treated as a fraction of an equity share to the extent that they were entitled to participate in dividends relative to a fully paid equity share during the reporting period. The weighted average number of equity shares outstanding during the period is adjusted for events such as bonus issue, bonus element in a rights issue, share spilt and reverse share split (consolidation of shares) that have changed the number of equity shares outstanding, without a corresponding change in resources.

Diluted EPS amounts are calculated by dividing the loss attributable to equity holders of the Company by the weighted average number of equity shares outstanding during the year plus the weighted average number of equity shares that would be issued on conversion of all the dilutive potential equity shares into equity shares.

34. SIGNIFICANT ACCOUNTING ESTIMATES AND ASSUMPTIONS

The preparation of the Company''s Standalone Financial Statements requires management to make judgements, estimates and assumptions that affect the reported amount of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Actual results could differ from those estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

The estimates and the underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and future periods affected.

Significant judgements and estimates relating to the carrying values of assets and liabilities include provision for obsolete inventory, impairment of investments, impairment of non current assets, provision for employee benefits and other provisions, fair value measurement of financial assets and liabilities, commitments and contingencies.

Estimates and assumptions

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

a. Income taxes

The Company''s tax jurisdiction is India. Significant judgements are involved in estimating budgeted profits for the purpose

of paying advance tax, determining the provision for income taxes, including amount expected to be paid/recovered for uncertain tax positions.

b. Property, plant and equipment

Property, plant and equipment represent a significant proportion of the asset base of the Company. The charge in respect of periodic depreciation is derived after determining an estimate of an asset''s expected useful life and the expected residual value at the end of its life. The useful lives and residual values of Company''s assets are determined by the management at the time the asset is acquired and reviewed periodically, including at each financial year end. The lives are based on historical experience with similar assets as well as anticipation of future events, which may impact their life, such as changes in technical or commercial obsolescence arising from changes or improvements in production or from a change in market demand of the product or service output of the asset.

c. Right-of-use assets and lease liability

The Company has exercised judgement in determining the lease term as the non-cancellable term of the lease, together with the impact of options to extend or terminate the lease if it is reasonably certain to be exercised. Where the rate implicit in the lease is not readily available, an incremental borrowing rate is applied. This incremental borrowing rate reflects the rate of interest that the lessee would have to pay to borrow over a similar term, with a similar security, the funds necessary to obtain an asset of a similar nature and value to the right-of-use asset in a similar economic environment. Determination of the incremental borrowing rate requires estimation.

d. Impairment of non current asset including investments

Determining whether investment are impaired requires an estimation of the value in use of the individual investment or the relevant cash generating units (''CGU''). The value in use calculation is based on DCF model over the estimated useful life of the CGU''s. Further, the cash flow projections are based on estimates and assumptions relating to sale price/customer orders on hand, efficiency in operations etc.

e. 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.

f. Contingencies

Contingent liabilities may arise from the ordinary course of business in relation to claims against the Company, including legal and contractual claims. By their nature, contingencies will be resolved only when one or more uncertain future events occur or fail to occur. The assessment of the existence, and potential quantum, of contingencies inherently involves the exercise of significant judgement and the use of estimates regarding the outcome of future events.

In respect of bank guarantees provided by the Company to third parties, the Company considers that it is more likely than not that such an amount will not be payable under the guarantees provided.

g. Defined benefit obligations

The cost of the defined benefit gratuity plan 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.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans operated in India, the management considers the interest rates of government bonds.

The mortality rate is based on publicly available mortality tables for India. Those mortality tables tend to change only at interval in response to demographic changes. Future salary increases and gratuity increases are based on expected future inflation rates.

Further details about gratuity obligations are given in note 38.

h. Provision for obsolete inventory

Inventory write downs are accounted, considering the nature of inventory, ageing, liquidation plan and net realisable value.

These write downs are recognised as an expense and are included in "(Increase)/decrease in inventories of finished goods and work-in-progress" in the statement of profit and loss.

i. Expected credit losses on financial assets

The impairment provisions of financial assets and contract assets are based on assumptions about risk of default and expected timing of collection. The Company uses judgment in making these assumptions and selecting the inputs to the impairment calculation, based on the Company''s past history of collections, customer''s creditworthiness, existing market conditions as well as forward looking estimates at the end of each reporting period.

j. Non current assets held for sale

Non current assets held for sale are measured at the lower of carrying amount or fair value less costs to sell. Determination of fair value involves management estimate. Fair value of assets held for sale is determined using valuation technique involving unobservable inputs. Judgement is involved in estimating future cash flow, determining discount rate etc.

k. Employee share based payments

Company''s share based payments to employees primarily consist of Employee Stock Option Plans (''ESOPs'') and Restricted Stock Units (''RSUs''). The share-based compensation expense is determined based on the Company''s estimate of fair value at grant date of the ESOPs/RSUs granted. The Company estimates fair value of ESOPs/RSUs using Black-Scholes-Merton (''BSM'') option pricing model. The BSM model is based on various assumptions including expected volatility, expected life, interest rate.

l. Revenue from Export incentives

For measurement of income from the export incentives, significant estimates and judgments are made which include, eligibility of the export transaction for the claim, the timing of processing such claim and its subsequent realization and also the rate notified/to be notified by the government authorities.

35. SEGMENT INFORMATION- DISCLOSURE PURSUANT TO IND AS 108 ''OPERATING SEGMENT''

(a) Basis of identifying operating segments:

Operating segments are identified as those components of the Company (a) that engage in business activities to earn revenues and incur expenses (including transactions with any of the Company''s other components); (b) whose operating results are regularly reviewed by the Company''s Chief Executive Officer to make decisions about resource allocation and performance assessment and (c) for which discrete financial information is available.

The accounting policies consistently used in the preparation of the financial statements are also applied to record revenue and expenditure in individual segments. Assets, liabilities, revenues and direct expenses in relation to segments are categorised based on items that are individually identifiable to that segment, while other items, wherever allocable, are apportioned to the segments on an appropriate basis. Certain items are not specifically allocable to individual segments as the underlying services are used interchangeably.

(b) The Company is engaged in a single business segment of sale of garment and hence no additional disclosures are required.

36. COMMITMENTS AND CONTINGENCIES

I. Leases

The Company evaluates if an arrangement qualifies to be a lease as per the requirements of Ind AS 116. Identification of a lease requires significant judgement. The Company uses judgement in assessing whether a contract (or part of contract) include a lease, the lease term (including anticipated renewals), the applicable discount rate, variable lease payments whether are insubstance fixed. The judgement involves assessment of whether the asset included in the contract is a fully or partly identified asset based on the facts and circumstances, whether the contract include a lease and nonlease component and if so, separation thereof for the purpose of recognition and measurement, determination of lease term basis, inter alia the non-cancellable period of lease and whether the lessee intends to opt for continuing with the use of the asset upon the expiry thereof, and whether the lease payments are fixed or variable or a combination of both. The Company records the lease liability at the present value of the lease payments discounted at the incremental borrowing rate.

The movement in lease liabilities is as follows:
Particulars	As at March 31, 2023	As at March 31, 2022
Opening balance	12,808.24	11,103.15
Additions	1,403.65	3,663.38
Deletions	-	(88.99)
Finance cost accrued	1,465.33	1,353.04
Payment of lease liabilities	(4,092.24)	(3,222.34)
Closing balance	11,584.98	12,808.24

The break-up of current and non-current lease liabilities is as follows:
Particulars	As at March 31, 2023	As at March 31, 2022
Current lease liabilities	3,112.31	2,638.16
Non-current lease liabilities	8,472.67	10,170.08
Total	11,584.98	12,808.24
The details of the contractual maturities of lease liabilities on an undiscounted basis are as follows:
Particulars	As at March 31, 2023	As at March 31, 2022
Less than one year	4,230.64	3,968.83
One to five years	10,103.24	11,914.33
More than five years	776.33	1,345.24
Total	15,110.21	17,228.40
The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the obligations related to lease liabilities as and when they fall due.

Rental charges recorded for short-term leases during the year is '' 1,400.67 Lakhs (March 31, 2022: '' 1,698.40 Lakhs).

II. Contingencies

In the ordinary course of business, the Company faces claims and assertions by various parties. The Company assesses such claims and assertions and monitors the legal environment on an ongoing basis with the assistance of external legal counsel, wherever necessary. The Company records a liability for any claims where a potential loss is probable and capable of being estimated and discloses such matters in its financial statements, if material. For potential losses that are considered possible, but not probable, the Company provides disclosure in the financial statements but does not record a liability in its accounts unless the loss becomes probable.

(i) The aforementioned demand amounts under dispute are as per the demands from various authorities for the respective periods and have not been adjusted to include further interest and penalty leviable, if any, at the time of final outcome of the appeals.

(ii) The Company is also involved in various other litigations and claims other than as tabulated above, the impact of which is not quantifiable. These cases are pending with various courts/forums and are scheduled for hearings. After considering the circumstances and legal evaluation thereon, the Company''s management believes that these cases are not tenable/ material and accordingly have not made any further adjustments, other than amount already provided in the Standalone Financial Statements.

IV. Corporate guarantee

The Company has provided corporate guarantee to the banks for the credit limits obtained by the wholly owned subsidiaries namely "Sri Susamyuta Knits Private Limited" and "Gokaldasexports Acharpura Private Limited".

37. HEDGING ACTIVITIES

Cash flow hedges

Foreign exchange forward contracts measured at fair value through OCI are designated as hedging instruments in cash flow hedges of forecast sales in foreign currency. These forecast transactions are highly probable, and they comprise about 100% of the Company''s total expected sales in foreign currency.

The foreign exchange forward contract balances vary with the level of expected foreign currency sales and changes in foreign exchange forward rates.

Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness assessments to ensure that an economic relationship exists between the hedged item and hedging instrument, including whether the hedging instrument is expected to offset changes in cash flows of hedged items.

The cash flow hedges of the expected future sales during the year ended March 31, 2023 and March 31, 2022 were assessed to be highly effective and a net unrealised gain/loss relating to hedging instrument is included in OCI. The amounts retained in OCI at March 31, 2023 are expected to mature and affect the statement of profit and loss during the year ended March 31, 2024 and March 31, 2025.

The Company offsets a financial asset and financial liability when it currently has a legally enforceable right to set off the recognized amounts and the Company intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.

38. GRATUITY AND OTHER POST-EMPLOYMENT BENEFIT PLANS

The Company has a defined benefit gratuity plan. The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the Payment of Gratuity Act, 1972, every employee who has completed four years and 240 days or more of service gets gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The level of benefits provided depends on the member''s length of service and salary at retirement age. The scheme is funded with Life Insurance Corporation of India in the form of a qualifying insurance policy.

The following tables summarise the components of net benefit expenses recognised in the standalone statement of profit or loss and the funded status and amounts recognised in the standalone balance sheet for gratuity benefit.

41. SHARE- BASED PAYMENTS

The Company''s employee benefit plans are as summarised below:

In September 2010, the shareholders of the Company approved Stock Option Plan (ESOP 2010) in accordance with the guidelines issued by the Securities and Exchange Board of India (SEBI) for Employees Stock Options Plan. The plan covered all employees of the Company including employees of subsidiaries and directors and provided for the issue of 1,718,800 shares of '' 5 each.

Further, the shareholders of the Company by way of special resolution dated August 26, 2018 approved Employee Restricted Stock Unit Plan (RSU 2018) in accordance with the guidelines issued by the SEBI for employees Stock Options Plan. The plan covered all the senior management employees of the Company and provided for the issue of 2,133,040 shares of '' 5 each.

Further, the shareholders of the Company by way of special resolution dated April 03, 2022 approved Stock Option Plan (ESOP 2022) in accordance with the guidelines issued by the SEBI for employees Stock Options Plan. The plan covered all the senior management employees of the Company and provided for the issue of 3,000,000 shares of '' 5 each.

The fair value of the stock options is estimated at the grant date using a Black-Scholes-Merton (''BSM'') option pricing model. The BSM option pricing model incorporates various assumptions including expected volatility, expected life and interest rates. The Company recognises share based compensation cost as expense over the requisite service period.

The contractual term of each option granted is ranging from two to three years. There are no cash settlement alternatives. The Company does not have a past practice of cash settlement for these share options

The expected life of the share options is based on historical data and current expectations and is not necessarily indicative of exercise patterns that may occur. The expected volatility reflects the assumption that the historical volatility over a period similar to the life of the options is indicative of future trends, which may not necessarily be the actual outcome.

42. DISCLOSURES ON FINANCIAL INSTRUMENTS

This section gives an overview of the significance of financial instruments for the Company and provides additional information on balance sheet items that contain financial instruments.

The details of significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised in respect of each class of financial asset and financial liability are disclosed in Note 2.2 (b) and Note 2.2 (o) to the Standalone Financial Statements.

(a) Financial assets and liabilities

The following tables presents the carrying value and fair value of each category of financial assets and liabilities:

(b) Fair value hierarchy

The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into Level 1 to Level 3, as described below:

Quoted prices in an active market (Level 1): This level of hierarchy includes financial assets that are measured by reference to quoted prices (unadjusted) in active markets for identical assets or liabilities. This category consists of investment in quoted equity shares, and mutual fund investments.

Valuation techniques with observable inputs (Level 2): This level of hierarchy includes financial assets and liabilities, measured using inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).

Valuation techniques with significant unobservable inputs (Level 3): This level of hierarchy includes financial assets and liabilities measured using inputs that are not based on observable market data (unobservable inputs). Fair values are determined in whole or in part, using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data.

(i) Short-term financial assets and liabilities are stated at carrying value which is approximately equal to their fair value.

Fair value of loans (security deposits) having a carrying amount of '' 2,657.01 Lakhs as at March 31, 2023 (March 31, 2022: '' 2,593.91 Lakhs) was '' 2,657.01 Lakhs (March 31, 2022: '' 2,593.91)

(ii) Foreign exchange forward contracts are fair valued using market observable rates and published prices together with forecasted cash flow information where applicable.

(iii) Management uses its best judgement in estimating the fair value of its financial instruments. However, there are inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates presented above are not necessarily indicative of the amounts that the Company could have

realised or paid in sale transactions as of respective dates. As such, fair value of financial instruments subsequent to the reporting dates may be different from the amounts reported at each reporting date.

(iv) There have been no transfers between Level 1, Level 2 and Level 3 during the year ended March 31, 2023 and March 31, 2022.

(c) Financial risk management objectives and policies

In the course of its business, the Company is exposed primarily to fluctuations in foreign currency exchange rates, interest rates, equity prices, liquidity and credit risk, which may adversely impact the fair value of its financial instruments. The Company has a risk management policy which not only covers the foreign exchange risks but also other risks associated with the financial assets and liabilities such as interest rate risks and credit risks. The risk management policy is approved by the Board of Directors. The risk management framework aims to:

(i) create a stable business planning environment by reducing the impact of currency and interest rate fluctuations on the Company''s business plan.

(ii) achieve greater predictability to earnings by determining the financial value of the expected earnings in advance.

Market risk

Market risk is the risk of any loss in future earnings, in realisable fair values or in future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in interest rates, foreign currency exchange rates, equity price fluctuations, liquidity and other market changes. Future specific market movements cannot be normally predicted with reasonable accuracy.

(i) Market risk - Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes

in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s debt obligations with floating interest rates. The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings.

Interest rate sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected. With all other variables held constant, the Company''s profit before tax is affected through the impact on floating rate borrowings, as follows:

Particulars	Increase/	Effect on profit
	(decrease) in	before tax
	basis points
March 31, 2023	50	12.54
March 31, 2022	50	31.53

(ii) Market risk- Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s operating and financing activities. The Company''s exposure to foreign currency changes from investing activities is not material.

The Company manages its foreign currency risk by hedging transactions that are expected to occur within a maximum 12-month period for hedges of forecasted sales.

As at March 31, 2023 and March 31, 2022, the Company hedged '' 143,037.06 Lakhs (USD 1,731.16 Lakhs) and '' 144,555.43 Lakhs (USD 1,850.43 Lakhs) respectively of it expected foreign currency sales. Those hedged sales were highly probable at the reporting date. This foreign currency risk is hedged by using foreign currency forward contracts.

Foreign currency sensitivity

The following tables demonstrate the sensitivity to a reasonably possible change in USD exchange rates, with all other variables held constant. The impact on the Company''s profit before tax is due to changes in the fair value of monetary assets and liabilities. The Company''s exposure to foreign currency changes for all other currencies is not material.

Particulars	Change in USD rate	Effect on profit before tax
March 31, 2023
'' in Lakhs	5%	715.17
March 31, 2022
'' in Lakhs	5%	218.41

The sensitivity analysis has been based on the composition of the Company''s financial assets and liabilities at March 31, 2023 and March 31, 2022. The period end balances are not necessarily representative of the average debt outstanding during the period.

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. Financial instruments that are subject to credit risk and concentration thereof principally consist of trade receivables, loans receivables, investments and cash and cash equivalents.

The carrying value of financial assets represents the maximum credit risk. The maximum exposure to credit risk was '' 64,999.67 Lakhs, '' 34,546.27 Lakhs, as at March 31, 2023 and March 31, 2022 respectively, being the total carrying value of trade receivables, balances with bank, bank deposits, investments other than investments in subsidiaries and other financial assets.

Customer credit risk is managed by each business unit subject to the Company''s established policy, procedures and control

relating to customer credit risk management. An impairment analysis is performed at each reporting date on an individual basis for major customers. The Company does not hold collateral as security.

With respect to Trade receivables, the Company has constituted the terms to review the receivables on periodic basis and to take necessary mitigations, wherever required. The Company creates allowance for all unsecured receivables based on lifetime expected credit loss based on a provision matrix. The provision matrix takes into account historical credit loss experience and is adjusted for forward looking information. The expected credit loss allowance is based on the ageing of the receivables that are due and rates used in the provision matrix.

Credit risk from balances with bank and financial institutions is managed by the Company''s treasury department in accordance with the Company''s policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterparty''s potential failure to make payments.

Liquidity risk

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company has obtained fund and non-fund based working capital lines from various banks. The Company invests its surplus funds in bank fixed deposit and government securities, which carry no or low market risk.

The Company monitors its risk of a shortage of funds on a regular basis. The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts, bank borrowings etc. The Company assessed the concentration of risk with respect to refinancing its debt and concluded it to be low.

Equity Price Risk

Equity Price Risk is related to the change in fair value of the investments in equity securities. Company''s investments in equity securities, including investments held for sale, are subject to changes in fair value of investments. The carrying value of investments represents the maximum equity risk. The maximum exposure to equity price risk was '' Nil and '' Nil as on March 31, 2023 and March 31, 2022 respectively, being the carrying value (net of provisions) of investments in unquoted equity shares. The risk is arising primarily on account of the Company''s investment in a foreign associate.

43. CAPITAL MANAGEMENT

The Company''s capital management is intended to create value for shareholders by facilitating the meeting of long term and short term goals of the Company.

The Company determines the amount of capital required on the basis of annual business plan coupled with long term and short term strategic investment and expansion plans. The funding needs are met through equity, cash generated from operations and sale of certain assets, long term and short term bank borrowings and issue of securities.

For the purpose of the Company''s capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders of the Company.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is total debt divided by total capital plus total debt. The Company''s policy is to keep the gearing ratio at an optimum level to ensure that the debt related covenant are complied with.

In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no material breaches in the financial covenants of any interest-bearing loans and borrowing for all the periods presented.

No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, 2023 and March 31,2022.

44.

The Company is in process of taking necessary steps to comply with the Transfer Pricing requirements relating to the preparation & maintenance of the Transfer Pricing documentation with respect to the specified domestic transactions entered into by the Company during financial year ended March 31, 2023. The Management is of the opinion that the specified domestic transactions are at arm''s length and hence the aforesaid legislation will not have any impact on the Standalone Financial Statements, particularly on the amount of tax expense and that of provision for taxation.

45.

The Company assessed the fair value less cost of sale of the investment in an associate held for sale. Change in the regulatory environment and the market conditions effecting the associate has adversely affected the fair value of the Company''s investment. The Company has written down the carrying value of the asset by recognizing an impairment loss of '' 626.56 Lakhs as an exceptional charge during the year ended March 31, 2019. The Company continues to make efforts to mitigate the loss by selling such investment in the near future, which could result in a partial or full reversal of the impairment loss. Further to related developments during the year on this matter, including claims filed by the Company for the recovery, the Company has reassessed that it is appropriate to reclassify the Investment from ''Associate'' to ''Others''.

46.

The Company had filed petition with the Company Law Board for compounding of offence u/s. 297 of the erstwhile Companies Act, 1956 for the transactions entered with CMS

Info Systems Private Limited between July 2009 to October 2011 and as at date, the petition is pending with the Company Law Board.

For periods subsequent to October 2011, the Company had filed an application with Central Government, Ministry of Corporate Affairs, seeking its approval u/s. 297(1) of the erstwhile Companies Act, 1956 for entering into contract with CMS Info Systems Private Limited which is pending approval.

47.

The Board of Directors of the Company at their meeting held on May 25, 2023 have recommended a final dividend of ''1/-(one rupee only) per equity share (i.e. 20% of face value of '' 5 per equity share) for the financial year ended March 31, 2023. The dividend recommended by the Board of Directors is subject to approval of the shareholders at the ensuing Annual General Meeting of the Company and if approved, would result in a cash outflow of approximately '' 605.78 Lakhs. The final dividend on shares is recorded as a liability on the date of approval by the shareholders.

48.

During the year, pursuant to the approval of the Board of Directors, the Company has concluded the sale of one of its building on leasehold land and other assets. The transaction has resulted in a gain of '' 605.03 Lakhs, which has been recognised as an exceptional item.

49.

The Company is in the process of augmenting its production capacity at cost-efficient locations. The Company intends to carry out the expansion projects under new wholly-owned subsidiary companies to regulate the business in an efficient manner and to be in a better position to service international customers.

In view of the above, during the board meeting held on February 10, 2023, the Company has obtained approval of the board to incorporate a new wholly-owned subsidiary Company. Consequently, "Gokaldas Exports Corporation" was incorporated on April 14, 2023.

Further, the board of directors have approved on March 31, 2023 to incorporate a new wholly-owned subsidiary Company in Dubai, UAE. Consequently, "Nava Apparels L.L.C-FZ" was incorporated on May 01, 2023.

50.

The World Health Organization announced a global health emergency because of a new strain of coronavirus ("COVID-19") and classified its outbreak as a pandemic on March 11, 2020. On March 24, 2020, the Indian government announced a strict 21-day lockdown across the country to contain the spread of the virus, which has been/was further extended till May 03, 2020. This pandemic and government response are creating disruption in global supply chain and adversely impacting most of the industries which has resulted in global slowdown.

The management has made an assessment of the impact of COVID-19 on the Company''s operations, financial performance and position as at and for the year ended March 31, 2022 and has concluded that the impact is primarily on the operational aspects of the business. Management has been able to address and counter the potential impact on the financial statements as at March 31, 2022 such as enhancing borrowing limits, strengthening liquidity, optimisation of resource utilisation, etc.

In assessing the recoverability of receivables including receivables, investments, and other assets, the Company has considered internal and external information up to the date of approval of these financial results including status of existing and future customer orders, cash flow forecasts, commitments with suppliers, etc. The Company has performed sensitivity analysis on the assumptions used and based on current indicators of future economic conditions, the Company expects to recover the carrying amount of these assets, the Company has also considered the impact of subsequent events in its assessment and concluded that there is no significant impact which is required to be recognised in the financial results. Accordingly, no further adjustments have been made to the financial results.

Considering the dynamic nature of the issue, the impact of the global health pandemic may be different from that estimated as at the date of approval of these financial results and the Company will continue to closely monitor any material changes to future economic conditions.

51. THE BOARD OF DIRECTORS, IN THEIR MEETING HELD ON AUGUST 24, 2021,HAD APPROVED:

(a) To increase the authorised share capital of the Company, from existing '' 275,000,000 (Rupees Twenty Seven Crores Fifty Lakhs Only) divided into 55,000,000 (Five Crores Fifty Lakhs Only) equity shares of '' 5/- each ("Equity shares") to '' 325,000,000/- (Rupees Thirty Two Crores Fifty Lakhs Only) divided into 65,000,000 (Six Crores Fifty Lakhs Only) Equity Shares of ''

---

Mar 31, 2018

1. Financial liabilities - Borrowings (Contd.)

⁴ Bill discounting from a bank of RS, 1,800 lakhs (March 31, 2017 and April 1, 2016: RS, 5,600 lakhs) carries interest @LIBOR plus applicable spread of 2.00% p.a. for foreign currency bills discounting and 10.05% p.a. for Indian Rupee bills discounting (March 31, 2017:LIBOR plus applicable spread of 2.00% p.a. for foreign currency bills discounting and 10.05% p.a. for Indian Rupee bills discounting and April 1, 2016:LIBOR plus applicable spread of 2.00 % p.a. for foreign currency bills discounting and 10.70% p.a. for Indian Rupee bills discounting) and interest is payable on transaction basis. The loan is secured by first pari passu charge on current assets of the Company. Out of the above, RS, 1,765.55 lakhs is outstanding as at March 31, 2018 (March 31, 2017:RS, 2,668.44 lakhs and April 1, 2016:RS, 2,361.89 lakhs). Also refer note 16 ⁸ and ⁹ below.

⁵Bill discounting from a bank of RS,10,850 lakhs carries interest @6 months LIBOR plus applicable spread of 3.50% p.a. for foreign currency bills discounting and MCLR plus applicable spread of 0.75% p.a. for Indian Rupee bills discounting (March 31, 2017:@6 months LIBOR plus applicable spread of 3.50% p.a. for foreign currency bills discounting and MCLR plus applicable spread of 0.75% p.a. for Indian Rupee bills discounting and April 1, 2016:@6 months LIBOR plus applicable spread of 3.50% p.a. for foreign currency bills discounting and 10.50% p.a. for Indian Rupee bills discounting) and interest is payable on transaction basis. The loan is secured by pari passu (i) hypothecation of inventory including stores and spares (including goods in transit/goods awaiting bank negotiation/goods with processors meant for export) and (ii) trade receivables of the Company. Out of the above, RS,10,670.58 lakhs is outstanding as at March 31, 2018 (March 31, 2017:RS,10,726.91 lakhs and April 1, 2016:RS,11,550.16 lakhs). Also refer note 16 ⁸ and ⁹ below.

⁶Bank overdraft from banks carries interest @one year MCLR plus applicable spreads of 4.50% p.a. / 4.45% p.a. (March 31, 2017:@one year MCLR plus applicable spreads of 4.50% / 4.45% p.a. and April 1, 2016:Base rate plus applicable spread of 4.50% p.a. / 4.25%p.a.) and interest is payable on monthly basis. The loan is secured by pari passu (i) hypothecation of inventory including stores and spares (including goods in transit/ goods awaiting bank negotiation/goods with processors meant for export) and (ii) trade receivables of the Company for a bank and first pari passu charge on current assets of the Company. Out of the above, RS,3,620 lakhs is outstanding as at March 31, 2018 (March 31, 2017:RS,3,672.87 lakhs and April 1, 2016:RS,3,014.22 lakhs ). Also refer note 16^{8 and 9} below.

⁷Indian rupee term loan from a bank of RS, Nil lakhs as at March 31, 2018 (March 31, 2017:Nil and April 1, 2016:RS,3,041.96 lakhs) carried interest @base rate plus applicable spread of 4.45% p.a .The loan was secured by exclusive charge on immovable property located in Bangalore and Mysore owned by the Company and pledge of certain fixed deposits. The loan was repayable in 35 monthly installments of RS, 184 lakhs each and a final installment of RS, 160 lakhs, after moratorium of 12 months commencing from the date of loan disbursement. The same was fully repaid as on April 6, 2016.

⁸The Company has further provided the following as the collateral to the consortium lenders towards the borrowings availed by the Company and as mentioned in the aforesaid note 16.

a) Pari passu charge on certain factory land and building located in Bangalore and Mysore owned by the Company and its subsidiary,

b) Pari passu charge on plant and machinery and certain movable assets of the Company,

c) Pari passu charge on certain fixed deposits made by the Company,

⁹ The Company has availed the interest subvention @3% during the years ended March 31, 2018 and March 31, 2017 under Interest Equalization Scheme for pre and post shipment ruppee export credit of Reserve Bank of India.

** Amounts for the year ended March 31, 2017 Includes fees paid to predecessor joint auditor of RS, 21.23 lakhs.

2. Income tax

The Company is subject to income tax in india on the basis of standalone financial statements. As per the Income Tax Act, the Company is liable to pay income tax which is the higher of regular income tax payable or the amount payable based on the provisions applicable for Minimum Alternate Tax (MAT).

MAT paid in excess of regular income tax during a year can be carried forward for a period of 15 years and can be offset against future tax liabilities.

Business loss can be carried forward for maximum period of eight assessment years immediately succeeding the assessment year to which the loss pertains. Unabsorbed depreciation can be carried forward for an indefinite period.

The Company has tax losses which arose in India of RS, 23,735.15 lakhs (March 31, 2017:RS, 21,690 lakhs, April 1, 2016:RS, 17,507.39 lakhs) that are available for offsetting over the period of eight years against future taxable profits of the companies in which the losses arose. Majority of these losses will expire by March 2021.

The Company has unabsorbed depreciation of RS, 8,453.72 lakhs (March 31, 2017:RS,7,048.18 lakhs, April 1, 2016:RS, 5,652.49 lakhs) that are available for offsetting for indefinite period.

Deferred tax assets have not been recognized in respect of these losses as the Company has been loss-making for some time.

3. Earnings per share (EPS)

Basic EPS amounts are calculated by dividing the loss for the year attributable to equity holders of the Company by the weighted average number of equity shares outstanding during the year. Partly paid equity shares are treated as a fraction of an equity share to the extent that they were entitled to participate in dividends relative to a fully paid equity share during the reporting period. The weighted average number of equity shares outstanding during the period is adjusted for events such as bonus issue, bonus element in a rights issue, share spilt and reverse share split (consolidation of shares) that have changed the number of equity shares outstanding, without a corresponding change in resources.

Diluted EPS amounts are calculated by dividing the loss attributable to equity holders of the Company by the weighted average number of equity shares outstanding during the year plus the weighted average number of equity shares that would be issued on conversion of all the dilutive potential equity shares into equity Shares.

Notes:

Employee stock options are not included in the calculation of diluted earnings per share as they are antidilutive for the years ended March 31, 2018 and March 31, 2017.

4. Significant accounting estimates and assumptions

The preparation of the Company''s standalone financial statements requires management to make judgments, estimates and assumptions that affect the reported amount of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Actual results could differ from those estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

The estimates and the underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised and future periods affected.

Significant judgments and estimates relating to the carrying values of assets and liabilities include provision for obsolete inventory, impairment of investments, impairment of non-current assets, provision for employee benefits and other provisions, fair value measurement of financial assets and liabilities, commitments and contingencies.

Estimates and assumptions

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

a. Impairment of non-current asset including investments

Determining whether investment are impaired requires an estimation of the value in use of the individual investment or the relevant cash generating units (''CGU''). The value in use calculation is based on DCF model over the estimated useful life of the CGU''s. Further, the cash flow projections are based on estimates and assumptions relating to sale price/customer orders on hand, efficiency in operations etc.

b. 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 judgment is required in establishing fair values. Judgments 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 38 for further disclosures.

c. Contingencies

Contingent liabilities may arise from the ordinary course of business in relation to claims against the Company, including legal and contractual claims. By their nature, contingencies will be resolved only when one or more uncertain future events occur or fail to occur. The assessment of the existence, and potential quantum, of contingencies inherently involves the exercise of significant judgment and the use of estimates regarding the outcome of future events.

In respect of bank guarantees provided by the Company to third parties, the Company considers that it is more likely than not that such an amount will not be payable under the guarantees provided. Refer note 32 for further disclosure.

d. Defined benefit plans (gratuity benefits)

The cost of the defined benefit gratuity plan 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.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans operated in India, the management considers the interest rates of government bonds.

The mortality rate is based on publicly available mortality tables for India. Those mortality tables tend to change only at interval in response to demographic changes. Future salary increases and gratuity increases are based on expected future inflation rates.

Further details about gratuity obligations are given in note 34.

e. Provision for obsolete inventory

Inventory write downs are accounted, considering the nature of inventory, ageing, liquidation plan and net realizable value. These write downs are recognized as an expense and are included in ”(Increase)/decrease in inventories of finished goods and work-in-progress" in the statement of profit and loss. Also refer note 10.

31. Segment information- Disclosure pursuant to Ind AS 108 ''Operating Segment''

(a) Basis of identifying operating segments:

Operating segments are identified as those components of the Company (a) that engage in business activities to earn revenues and incur expenses (including transactions with any of the Company''s other components); (b) whose operating results are regularly reviewed by the Company''s Chief Executive Officer to make decisions about resource allocation and performance assessment and (c) for which discrete financial information is available.

The accounting policies consistently used in the preparation of the financial statements are also applied to record revenue and expenditure in individual segments. Assets, liabilities, revenues and direct expenses in relation to segments are categorised based on items that are individually identifiable to that segment, while other items, wherever allocable, are apportioned to the segments on an appropriate basis. Certain items are not specifically allocable to individual segments as the underlying services are used interchangeably.

(b) The Company is engaged in a single business segment of sale of garment and hence no additional disclosures are required.

The revenue information above is based on the locations of the customers.

Revenue from two customer amounted to RS,52,014.04 lakhs (March 31, 2017: RS,37,725.34 lakhs), arising from sales of readymade garments. **Revenues by geographical area are based on the geographical location of the client.

***Non-current assets excludes non-current tax assets.

5. Commitments and contingencies

I. Leases

Operating lease: Company as lessee

The Company''s leasing arrangements in respect of its office, factory and residential premises are in the nature of operating leases. These leasing arrangements, which are usually cancellable at the option of the lessee, are for a total period ranging from eleven months to six years and are renewable with mutual consent. All leases include a clause to enable upward revision of the rental charge on a periodic basis as specified under the rental agreement usually being 5% every year or 15% once in three years. There are no restrictions imposed by lease arrangements. There are no subleases.

II. Contingencies

In the ordinary course of business, the Company faces claims and assertions by various parties. The Company assesses such claims and assertions and monitors the legal environment on an ongoing basis with the assistance of external legal counsel, wherever necessary. The Company records a liability for any claims where a potential loss is probable and capable of being estimated and discloses such matters in its financial statements, if material. For potential losses that are considered possible, but not probable, the Company provides disclosure in the financial statements but does not record a liability in its accounts unless the loss becomes probable.

The following is a description of claims and assertions where a potential loss is possible, but not probable. The Company believes that none of the contingencies described below would have a material adverse effect on the Company''s financial condition, results of operations or cash flows.

* Certain demands from income tax authorities have been set off against the brought forward business loss and unabsorbed depreciation of previous years and accordingly amount disclosed as contingent liabilities represent the demands after setting off such brought forward loss and depreciation.

(i) The aforementioned demand amounts under dispute are as per the demands from various authorities for the respective periods and have not been adjusted to include further interest and penalty loveable, if any, at the time of final outcome of the appeals.

(ii) The Company is also involved in various other litigations and claims other than as tabulated above, the impact of which is not quantifiable. These cases are pending with various courts/forums and are scheduled for hearings. After considering the circumstances and legal evaluation thereon, the Company''s management believes that these cases are not tenable/material and accordingly have not made any further adjustments, other than amount already provided in the standalone financial statements.

6. Hedging activities Cash flow hedges

Foreign exchange forward contracts measured at fair value through OCI are designated as hedging instruments in cash flow hedges of forecast sales in foreign currency. These forecast transactions are highly probable, and they comprise about 100% of the Company''s total expected sales in foreign currency.

The foreign exchange forward contract balances vary with the level of expected foreign currency sales and changes in foreign exchange forward rates.

The Company is holding the following foreign currency forward contract to hedge the exposure on its highly probable sales over the next 12 months:

Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness assessments to ensure that an economic relationship exists between the hedged item and hedging instrument, including whether the hedging instrument is expected to offset changes in cash flows of hedged items.

The cash flow hedges of the expected future sales during the year ended March 31, 2018, March 31, 2017 and April 1, 2016 were assessed to be highly effective and a net unrealized gain or loss relating to hedging instrument is included in OCI . The amounts retained in OCI at March 31, 2018 are expected to mature and affect the statement of profit and loss during the year ended March 31, 2019.

The Company offsets a financial asset and financial liability when it currently has a legally enforceable right to set off the recognized amounts and the Company intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.

7. Gratuity and other post-employment benefit plans

The Company has a defined benefit gratuity plan. The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the Payment of Gratuity Act, 1972, every employee who has completed four years and 240 days or more of service gets gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The level of benefits provided depends on the member''s length of service and salary at retirement age. The scheme is funded with Life Insurance Corporation of India in the form of a qualifying insurance policy.

The following tables summarize the components of net benefit expense recognized in the standalone statement of profit or loss and the funded status and amounts recognized in the standalone balance sheet for gratuity benefit.

Notes:

1. Plan assets are fully represented by balance with the Life Insurance Corporation of India.

2. The expected return on plan assets is determined considering several applicable factors mainly the composition of the plan assets held, assessed risks of asset management, historical results of the return on plan assets and the Company''s policy for plan asset management.

3. The estimates of future salary increase in compensation levels, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

4. As per Indian Assured Lives Mortality (2006-08) (modified) ultimate.

35. Related party transactions

a. Names of related parties and description of relationships:

Description of relationship Name of related parties

Holding Company Clear Wealth Consultancy Services LLP (effective July 10, 2017)

Blackstone FP Capital Partners (Mauritius) V-B Subsidiary Limited (till July 10, 2017) Wholly owned subsidiaries All Colour Garments Private Limited

Deejay Trading Private Limited Glamourwear Apparels Private Limited Madhin Trading Private Limited Magenta Trading Private Limited Rafter Trading Private Limited Rajdin Apparels Private Limited Reflexion Trading Private Limited Rishikesh Apparels Private Limited Seven Hills Clothing Private Limited SNS Clothing Private Limited Vignesh Apparels Private Limited

Key management personnel and their relatives Mr. Padala Ramababu, Managing Director (resigned w.e.f January 31, 2018)

Mr. Sivaramakrishnan Vilayur Ganapathi, Managing Director (appointed w.e.f October 03, 2017)

Mr. Mathew Cyriac (Director)

Mr. Richard B Saldanha, (Chairman and Independent Director)

Mr. Arun K Thiagarajan (Independent Director)

Ms. Smita Aggarwal (Independent Director)

Mr. Jitendrakumar H.Mehta (Independent Director) (resigned w.e.f October 2, 2017) (reappointed w.e.f December 29, 2017)

Ms. Anuradha Sharma (Independent Director) (appointed w.e.f October 30, 2017)

Mr. Palaniappan Chidambaram (Additional Director) (appointed w.e.f October 30, 2017) Mr. Sathyamurthy A, (Chief Financial Officer)

Ms. Ramya Kannan (Company Secretary)

8. Share- based payments

The Company''s employee benefit plans are as summarized below:

In September 2010, the shareholders of the Company approved Stock Option Plan (ESOP 2010) in accordance with the guidelines issued by the Securities and Exchange Board of India (SEBI) for Employees Stock Options Plan. The plan covered all employees of the Company including employees of subsidiaries and directors and provided for the issue of 1,718,800 shares of H 5 each.

The fair value of the stock options is estimated at the grant date using a Black-Scholes-Merton (''BSM'') option pricing model. The BSM option pricing model incorporates various assumptions including expected volatility, expected life and interest rates. The Company recognizes share based compensation cost as expense over the requisite service period.

The contractual term of each option granted is three years. There are no cash settlement alternatives. The Company does not have a past practice of cash settlement for these share options

* Not applicable since no ESOP''s were granted during the year.

The expected life of the share options is based on historical data and current expectations and is not necessarily indicative of exercise patterns that may occur. The expected volatility reflects the assumption that the historical volatility over a period similar to the life of the options is indicative of future trends, which may not necessarily be the actual outcome.

9. Disclosures on Financial instruments

This section gives an overview of the significance of financial instruments for the Company and provides additional information on balance sheet items that contain financial instruments.

The details of significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognized in respect of each class of financial asset and financial liability are disclosed in Note 2.2 (b) and Note 2.2 (o) to the standalone financial statements.

(a) Financial assets and liabilities

The following tables presents the carrying value and fair value of each category of financial assets and liabilities as at March 31, 2018, March

31, 2017 and April 1, 2016.

10. Disclosures on Financial instruments (Contd.)

Valuation techniques with significant unobservable inputs (Level 3): This level of hierarchy includes financial assets and liabilities measured using inputs that are not based on observable market data (unobservable inputs). Fair values are determined in whole or in part, using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data.

(i) Short-term financial assets and liabilities are stated at carrying value which is approximately equal to their fair value.

(ii) Foreign exchange forward contracts are fair valued using market observable rates and published prices together with forecasted cash flow information where applicable.

(iii) Management uses its best judgment in estimating the fair value of its financial instruments. However, there are inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates presented above are not necessarily indicative of the amounts that the Company could have realized or paid in sale transactions as of respective dates. As such, fair value of financial instruments subsequent to the reporting dates may be different from the amounts reported at each reporting date.

(iv) There have been no transfers between Level 1, Level 2 and Level 3 during the period ended March 31, 2018, March 31, 2017 and April 1, 2016.

(c) Financial risk management objectives and policies

In the course of its business, the Company is exposed primarily to fluctuations in foreign currency exchange rates, interest rates, equity prices, liquidity and credit risk, which may adversely impact the fair value of its financial instruments. The Company has a risk management policy which not only covers the foreign exchange risks but also other risks associated with the financial assets and liabilities such as interest rate risks and credit risks. The risk management policy is approved by the Board of Directors. The risk management framework aims to:

(i) create a stable business planning environment by reducing the impact of currency and interest rate fluctuations on the Company''s business plan.

(ii) achieve greater predictability to earnings by determining the financial value of the expected earnings in advance.

Market risk

Market risk is the risk of any loss in future earnings, in realizable fair values or in future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in interest rates, foreign currency exchange rates, equity price fluctuations, liquidity and other market changes. Future specific market movements cannot be normally predicted with reasonable accuracy

11. Disclosures on Financial instruments (Contd.)

(i) Market risk - Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s debt obligations with floating interest rates. The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings.

Interest rate sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected. With all other variables held constant, the Company''s profit before tax is affected through the impact on floating rate borrowings, as follows:

(ii) Market risk- Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s operating and financing activities. The Company''s exposure to foreign currency changes from investing activities is not material.

The Group manages its foreign currency risk by hedging transactions that are expected to occur within a maximum 12-month period for hedges of forecasted sales.

As at March 31, 2018 and March 31, 2017, the Company hedged RS,24,636.47 lakhs (USD 374.94 lakhs) and RS,29,748.62 lakhs (USD 434.78 lakhs) respectively of it expected foreign currency sales. Those hedged sales were highly probable at the reporting date. This foreign currency risk is hedged by using foreign currency forward contracts.

The following table represents foreign currency risk from non-derivative financial instruments as at March 31, 2018, March 31, 2017 and April 1, 2016

The sensitivity analysis has been based on the composition of the Company''s financial assets and liabilities at March 31, 2018, March 31, 2017 and April 1, 2016. The period end balances are not necessarily representative of the average debt outstanding during the period.

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. Financial instruments that are subject to credit risk and concentration thereof principally consist of trade receivables, loans receivables, investments and cash and cash equivalents.

The carrying value of financial assets represents the maximum credit risk. The maximum exposure to credit risk was RS,40,998.66 lakhs, RS,42,631.67 lakhs, RS,47,401.86 lakhs, as at March 31, 2018, March 31, 2017 and April 1, 2016 respectively, being the total carrying value of trade receivables, balances with bank, bank deposits, investments other than investments in subsidiaries and other financial assets.

Customer credit risk is managed by each business unit subject to the Company''s established policy, procedures and control relating to customer credit risk management. An impairment analysis is performed at each reporting date on an individual basis for major customers. The Company does not hold collateral as security.

With respect to Trade receivables, the Company has constituted the terms to review the receivables on periodic basis and to take necessary mitigations, wherever required. The Company creates allowance for all unsecured receivables based on lifetime expected credit loss based on a provision matrix. The provision matrix takes into account historical credit loss experience and is adjusted for forward looking information. The expected credit loss allowance is based on the ageing of the receivables that are due and rates used in the provision matrix.

Credit risk from balances with bank and financial institutions is managed by the Company''s treasury department in accordance with the Company''s policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. The limits are set to minimize the concentration of risks and therefore mitigate financial loss through counterparty''s potential failure to make payments.

12. Disclosures on Financial instruments (Contd.)

Liquidity risk

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company has obtained fund and non-fund based working capital lines from various banks. The Company invests its surplus funds in bank fixed deposit and government securities, which carry no or low market risk.

The Company monitors its risk of a shortage of funds on a regular basis. The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts, bank borrowings etc. The Company assessed the concentration of risk with respect to refinancing its debt and concluded it to be low.

The following table shows a maturity analysis of the anticipated cash flows excluding interest obligations for the Company''s financial liabilities on an undiscounted basis, which therefore differ from both carrying value and fair value.

13. Capital management

The Company''s capital management is intended to create value for shareholders by facilitating the meeting of long term and short term goals of the Company

The Company determines the amount of capital required on the basis of annual business plan coupled with long term and short term strategic investment and expansion plans. The funding needs are met through equity, cash generated from operations and sale of certain asset, long term and short term bank borrowings and issue of securities.

For the purpose of the Company''s capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders of the Company.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is total debt divided by total capital plus total debt. The Company''s policy is to keep the gearing ratio at an optimum level to ensure that the debt related covenant are complied with.

14. First-time adoption of Ind AS

These audited standalone financial statements for the year ended March 31, 2018, are the first the Company has prepared in accordance with Ind AS. For periods up to and for the year ended March 31, 2017, the Company prepared its financial statements in accordance with accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (as amended) and the Companies (Accounting Standards) Amendment Rules, 2016 (""Previous Indian GAAP"").

Accordingly, the Company has prepared these standalone financial statements which comply with Ind AS applicable for periods ending on March 31, 2018, together with the comparative period data as at and for the year ended March 31, 2017 as described in the summary of significant accounting policies. In preparing these financial statements, the Company''s opening balance sheet was prepared as at April 1, 2016, the Company''s date of transition to Ind AS. This note explains the principal adjustments made by the Company in restating its Previous Indian GAAP financial statements, including the balance sheets as at April 1, 2016 and the financial statement as at and for the year ended March 31, 2017.

I. Exemptions applied

Ind AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has applied the following material exemptions:

Exemptions :

Estimates

The estimates at April 1, 2016 and at March 31, 2017 are consistent with those made for the same dates in accordance with Previous Indian GAAP apart from the Impairment of financial assets based on the Expected Credit Loss (''ECL'') model where application of Indian GAAP did not require estimation.

The estimates used by the Company to present these amounts in accordance with Ind AS reflect conditions at April 1, 2016, the date of transition to Ind AS, as of March 31, 2017 and March 31, 2018.

De-recognition of financial assets and liabilities

The Company has elected to apply the de-recognition provisions of Ind AS 109 prospectively from the date of transition to Ind AS. Classification and measurement of Financial assets

The Company has classified the financial assets in accordance with Ind AS 109 on the basis of facts and circumstances that exist at the date of transition to Ind AS.

Optional Exemptions :

Deemed cost Previous GAAP carrying amount: (PPE and intangible asset)

The Company has elected to avail exemption under Ind AS 101 to use Previous Indian GAAP carrying value as deemed cost at the date of transition for all items of Property, plant and equipment (''PPE''), Capital work in progress (''CWIP'') and Intangible assets as per the balance sheet prepared in accordance with Previous Indian GAAP.

Investment in subsidiaries

In separate financial statements, a first-time adopter that subsequently measures an investment in a subsidiary at cost, may measure such investment at cost (determined in accordance with Ind AS 27) or deemed cost (fair value or previous Indian GAAP carrying amount) in its separate opening Ind AS balance sheet.

Selection of fair value or previous Indian GAAP carrying amount for determining deemed cost can be done for each subsidiary.

The Company has elected to apply previous Indian GAAP carrying amount to its investment in subsidiaries.

15. First-time adoption of Ind AS (Contd.)

Share based payment

Ind AS 101 permits a first time adopter to not consider the employee stock options, that have already vested on or before the date of transition, for fair valuatiom. Accordingly, the Company has elected to measure only those employee stock options that have not vested as on date of transition.

Fair value measurement of financial assets or financial liabilities

In accordance with paragraph D20 of Ind AS 101, the Company has applied day one gain or loss provisions prospectively to transactions occurring on or after the date of transition to Ind AS.

Notes to reconciliations between Previous Indian GAAP and Ind AS

a. Income on government grant:

Under Previous Indian GAAP benefit received from the government in the form of waiver of import duty on import of capital assets was not recognized as cost of plant and machinery. Under Ind AS, the same is treated as a government grant provided by government on capital assets. The amount of grant is added to the cost of plant and machinery and depreciated over the remaining life of the asset. The amount of grant is recognized as income once the conditions for the grant are satisfied.

16. First-time adoption of Ind AS (Contd.)

b. Accretion of security deposit:

Under Previous Indian GAAP, interest free security deposit that are refundable in cash on completion of its term were recorded at their transaction value.

Under Ind AS, all financial assets are to require to be recognized at fair value. Accordingly, the Company has fair valued these security deposits under Ind AS. Difference between the fair value and transaction value of the security deposit has been recognized as prepaid rent. Interest income arising out of the fair valuation of security deposit at the balance sheet date has been credited to statement of profit and loss as other income.

c. Employee share based payment

Under Previous Indian GAAP, the Company accounted for Employee stock option plan expenses based on intrinsic value method. Under Ind AS, these share based payment have been accounted using fair value method."

d. Remeasurment of post- employee benefit obligations:

(a) In accordance with Ind AS 19, "Employee Benefits" re-measurement gains and losses on post-employment defined benefit plans are recognized in other comprehensive income as compared to the statement of profit and loss under the Previous Indian GAAP.

(b) Interest expense/income on the net defined benefit liability/asset is recognized in the statement of profit and loss using the discount rate used for defined benefit obligation as compared to the expected rate used for recognizing income from plan assets under Previous Indian GAAP.

e. Other comprehensive income:

Under Previous Indian GAAP, the Company has not presented other comprehensive income (OCI) separately. Hence, it has reconciled Previous Indian GAAP profit or loss to Ind AS profit or loss. Further, Previous Indian GAAP profit or loss is reconciled to total comprehensive income as per Ind AS.

f. Statement of cash flows

The transition from Indian GAAP to Ind AS has not had a material impact on the statement of cash flows.

g. Previous year figures have been regrouped

The figures of the previous periods have been regrouped/ reclassified, where necessary, to conform with the current year''s classification.

h. Retained earnings

Retained earnings as at April 1, 2016 has been adjusted consequent to the above Ind AS transition adjustments.

17. Standards issued but yet not effective

The amendments to standards that are issued, but not yet effective, up to the date of issuance of the Company''s financial statements are disclosed below. The Company intends to adopt these standards, if applicable, when they become effective.

The Ministry of Corporate Affairs (MCA) has issued the Companies (Indian Accounting Standards) Amendment Rules, 2017 and Companies (Indian Accounting Standards) Amendment Rules, 2018 amending the following standard:

Ind AS 115 Revenue from Contracts with Customers

Ind AS 115 "Revenue from Contracts with Customers" was issued on March 28, 2018 and establishes a five-step model to account for revenue arising from contracts with customers. Under Ind AS 115, revenue is recognized at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer.

The new revenue standard will supersede all current revenue recognition requirements under Ind AS. This new standard requires revenue to be recognized when promised goods or services are transferred to customers in amounts that reflect the consideration to which the Company expects to be entitled in exchange for those goods or services. Adoption of the new rules could affect the timing of revenue recognition for certain transactions of the Company. Ind AS 115 is effective for the Company in the first quarter of fiscal year 2019 using either one of two methods:

(i) retrospectively to each prior reporting period presented in accordance with Ind AS 8 "Accounting Policies, Changes in Accounting Estimates and Errors", with the option to elect certain practical expedients as defined within Ind AS 115 (the full retrospective method); or

(ii) retrospectively with the cumulative effect of initially applying Ind AS 115 recognized at the date of initial application (April 1, 2018) and providing certain additional disclosures as defined in Ind AS 115 (the modified retrospective method).

As the Company is in the business of sale of garments and the same are sold in separate identified contracts with customers wherein sale of garments is the only performance obligation, Adoption of Ind AS 115 is not expected to have any impact on the Company''s revenue and profit or loss. The Company expects the revenue recognition to occur at a point in time when control of the asset is transferred to the customer, generally on delivery of the goods.

Amendments to Ind 112 Disclosure of Interests in Other Entities: Clarification of the scope of disclosure requirements in Ind AS 112

The amendments clarify that the disclosure requirements in Ind AS 112, other than those in paragraphs B10-B16, apply to an entity''s interest in a subsidiary, a joint venture or an associate (or a portion of its interest in a joint venture or an associate) that is classified (or included in a disposal group that is classified) as held for disposal.

As at March 31, 2018, the Company has classified its interest in Yepme Investments UK Limited, an associate, as held for sale (refer note 5 and note 45), but these amendments are unlikely to affect the Company''s financial statements.

Amendments to Ind AS 12 Recognition of Deferred Tax Assets for Unrealized Losses

The amendments clarify that an entity needs to consider whether tax law restricts the sources of taxable profits against which it may make deductions on the reversal of that deductible temporary difference. Furthermore, the amendments provide guidance on how an entity should determine future taxable profits and explain the circumstances in which taxable profit may include the recovery of some assets for more than their carrying amount.

Entities are required to apply the amendments retrospectively. However, on initial application of the amendments, the change in the opening equity of the earliest comparative period may be recognized in opening retained earnings (or in another component of equity, as appropriate), without allocating the change between opening retained earnings and other components of equity. Entities applying this relief must disclose that fact.

These amendments are effective for annual periods beginning on or after April 1, 2018. These amendments are not expected to have any impact on the Company.

18. The Company is in process of taking necessary steps to comply with the Transfer Pricing requirements relating to the preparation & maintenance of the Transfer Pricing documentation with respect to the specified domestic transactions entered into by the Company during financial year ended March 31, 2018. The Management is of the opinion that the specified domestic transactions are at arm''s length and hence the aforesaid legislation will not have any impact on the standalone financial statements, particularly on the amount of tax expense and that of provision for taxation.

19. The Company had applied for a scheme of amalgamation of 9 wholly owned subsidiary companies with the Company. The appointed date of amalgamation is April 1, 2016. The application was filed with the Hon''ble National Company Law Tribunal ("NCLT") on February 23, 2017. The NCLT has passed an order dated September 25, 2017 instructing the Company to conduct Secured Creditors Meeting and shareholders meeting in November 2017. Necessary approval has been obtained from the Secured Creditors (Canara Bank and Corporation Bank) on November 24, 2017 and shareholders of the Company on November 29, 2017 and the Report of the Chairman along with necessary petition has been filed with the NCLT. The approval from NCLT is pending receipt.

In view of the aforesaid matter and to facilitate ease of business operations, majority of the employees have been transferred from the subsidiary companies to the Company with effect from July 1, 2017.

20. An open offer was proposed by Clear Wealth Consultancy Services LLP ("Acquirer") along with Mathew Cyriac {Person acting in concert (""PAC"") 1}, Gazania Advisory LLP ("PAC II"), Westex Infotech Private Limited ("PAC III") and Gautham Madhavan ("PAC IV") (PAC I, PAC II, PAC III and PAC IV are collectively referred to as "PACs"). This Open Offer was made pursuant to the execution of share purchase agreement dated March 31, 2017 ("SPA") by the Acquirer with Blackstone FP Capital Partners (Mauritius) VB Subsidiary Ltd, being the erstwhile promoter of the Company. Pursuant to SPA, the Acquirer had agreed to acquire 13,955,742 equity shares representing 39.94% of fully paid-up equity share capital of the Target Company at a price of H42 per equity share aggregating to H586,141,164 payable in cash. This Open Offer was made under Regulations 3(1) and 4 of the SEBI (SAST) Regulations, 2011 to all public shareholders of the Target Company, pursuant to which the Acquirer will further acquire up to 9,179,993 equity shares representing 26% of expanded voting share capital of the Company at a price of H63.25 per equity share payable in cash subject to the terms and conditions set out in the detailed public statement and letter of offer that was sent to all public shareholders of the Company.

During the year ended March 31, 2018, the Acquirer has completed the acquisition of shares from Blackstone FP Capital Partners (Mauritius) VB Subsidiary Ltd and acquisition of 215 equity shares through open offer.

21. During the year ended March 31, 2018, the Company had acquired 32.45% Yepme UK Limited (YKL) by subscribing to 22,577 preference shares at GBP 33.22 each fully paid up aggregrating to GBP 75,008 (RS,6.27 crore). These shares have cumulative dividend rate of 0.1% and have voting rights pari passu with existing equity shares.

However, pursuant to the approval of Board , the Company has initiated identification and evaluation of potential buyers for its investments in Yepme UK Limited. and accordingly these investments amounting to H626.56 lakhs have been classified as ''held for sale''. Additionally, the Company has received offers for sale for values higher than the carrying value and hence no impairment adjustments has been provided for in the books towards such investments.

22. Subsequent to the year ended March 31, 2018, pursuant to the approval of the committee of the Board of Directors dated May 3, 2018, the Company issued 77.08 lakhs equity shares of RS,5 each, at an issue price of RS,90.00 per equity share (including H85.00 per share towards securities premium) aggregating to H6,937.20 lakhs to qualified institutional buyers under chapter VIII of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 as amended (the "SEBI Regulations") and provisions of all other applicable laws. The Shareholders had approved the aforesaid issue of equity shares by way of special resolution dated February 8, 2018.

23. The Company had filed petition with the Company Law Board for compounding of offence u/s. 297 of the erstwhile Companies Act, 1956 for the transactions entered with CMS Info Systems Private Limited between July 2009 to October 2011 and as at date, the petition is pending with the Company Law Board.

For periods subsequent to October 2011, the Company had filed an application with Central Government, Ministry of Corporate Affairs, seeking its approval u/s. 297(1) of the erstwhile Companies Act, 1956 for entering into contract with CMS Info Systems Private Limited which is pending approval.

24. The annual audited standalone financial statements for the year ended March 31, 2017 were jointly audited by S.R. Batliboi & Associates LLP with another firm of Chartered Accountants under Previous Indian GAAP.

25. The Board of Directors of the Company has appointed Mr. Sivaramakrishnan Vilayur Ganapathi (DIN 07954560) as the Managing Director of the Company with effect from October 03, 2017 and re-designated Mr. P Ramababu (DIN 00149649) as Vice Chairman of the Company. Mr. P Ramababu (DIN 00149649) has resigned from the Company on January 31, 2018.

26. Ministry of Corporate affairs have published a list of Disqualified Directors in September 2017. As per this list, Mr. Jitendra Kumar H Mehta (director of the Company as at March 31, 2018) was reported as disqualified from being appointed as a director in terms of section 164

(2) of the Companies Act, 2013 for the period from November 1, 2015 to October 31, 2020 pursuant to his directorship of Tag Media Network Private Limited (defaulting company). Consequently, the director has filed a writ petition with the High Court of Karnataka and have obtained an interim stay. The Company is confident to receive a favorable order and that there will not be a material impact on the standalone Ind AS financial statements of the Company.

27. Certain amounts (currency value or percentages) shown in the various tables and paragraphs included in the standalone financial statements have been rounded off or truncated as deemed appropriate by the management of the Company.

28. The comparatives given in the standalone financial statements have been complied after making necessary Ind AS adjustments to the respective audited financial statements under previous GAAP to give a true and fair view in accordance with Ind AS.

---

Mar 31, 2016

(b) Terms / rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs. 5 per share. Each holder of equity is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in ensuing Annual General Meeting.

In event of liquidation of the Company, the holders of equity shares would 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 declaration received from shareholders regarding beneficial interest, the above shareholding represent both legal and beneficial ownership of shares.

(e) Shares reserved for issue under options

For details of shares reserved for issue under the employee stock option (ESOP) plan of the Company, please refer note 38.

(a) Working capital loan from bank carries interest at 14.45% (2015: 14.95%) p.a. The loan is repayable in 35 monthly installments of Rs 184 lakhs each and a final installment of Rs 160 lakhs, after moratorium of 12 months from the date of loan. The loan is secured by certain land and buildings and fixed deposit of Rs 402 lakhs.

(e) The Company is also involved in certain litigations with third parties, the impact of which is not quantifiable. These cases are pending with various courts / forums and are scheduled for hearings. After considering the circumstances and legal evaluation thereon, the Company''s management believes that these cases will not have any adverse impact on the financial statements.

1. Gratuity

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on retirement or termination at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with an insurance Company in the form of a qualifying insurance policy.

The following tables summaries the components of net benefit expense recognized in the statement of profit and loss and the funded status and amounts recognized in the balance sheet:

Notes:

2. The estimate of future salary increases considered in actuarial valuation takes into account inflation, seniority, promotion and other relevant factors such as supply & demand in the employment market.

3. The estimated rate of return on plan assets is determined based on the market prices prevailing on that date, applicable to the period over which the obligation is to be settled.

4. The Company expects to contribute Rs.706.38 lakhs to gratuity fund in 2016-17.

5. Segment information

a) Primary business segment

The Company is engaged in a single business segment of sale of garment, and hence, no additional disclosures are required, other than those already given in the financial statements.

6. Related party disclosures

A. Names of related parties and description of relationship:

Description of Relationship Names of related parties

a. Parties where control exists:

Immediate Holding Company Blackstone FP Capital Partners (Mauritius) V-B

Subsidiary Limited

Ultimate holding Company Blackstone FP Capital Partners (Mauritius)

V-B Limited

Wholly owned subsidiaries All Colour Garments Private Limited

Deejay Trading Private Limited Glamourwear Apparels Private Limited Madhin Trading Private Limited Magenta Trading Private Limited Rafter Trading Private Limited Rajdin Apparels Private Limited Reflexion Trading Private Limited Rishikesh Apparels Private Limited Seven Hills Clothing Private Limited SNS Clothing Private Limited Vignesh Apparels Private Limited

b. Key management personnel:

Director and Chief Executive Officer Gautam Chakravarti (resigned effective May 25, 2015) Vice Chairman & Managing Director Padala Ramababu (appointed effective May 25, 2015) Chief Financial Officer (CFO) Sumit Keshan (resigned effective Nov 15, 2015)

Chief Financial Officer (CFO) Sathyamurthy A

(appointed effective Nov 16, 2015)

Company Secretary Ramya Kannan

7. Leasing arrangements

The Company''s leasing arrangements in respect of its office, factory and residential premises are in the nature of operating leases. These leasing arrangements, which are usually cancellable at the option of the lessee, are for a total period ranging from eleven months to sixty six months and are renewable with mutual consent. All leases include a clause to enable upward revision of the rental charge on a periodic basis as specified under the rental agreement. The charge on account of lease rentals for the year is Rs. 2,123.20 lakhs (2015: Rs. 885.58 lakhs).

8 Employee stock option Plans (Equity Settled)

In September 2010, the shareholders of the Company approved Stock Option Plan (ESOP 2010) in accordance with the guidelines issued by the Securities and Exchange Board of India (SEBI) for Employees Stock Options Plan. The plan covered all employees of the Company including employees of subsidiaries and directors and provided for the issue of 1,718,800 shares of Rs. 5 each. The Company follows intrinsic method of accounting for stock compensation cost pursuant to the Guidance Note on "Accounting for Employee Share - Based Payments" issued by the "Institute of Chartered Accountants of India".

Nil (2015: 85,000) options have been granted during the year and 408,339 (2015: 1,136,668) are outstanding as at March 31, 2016. The vesting period ranges from 1 to 7 years. Weighted average of remaining contractual life is 7.37 years (2015: 8.35 years). The weighted average exercise price of all the options is Rs. 42.34 (2015: Rs. 40.89). There is no compensation cost since the exercise price is equal to the intrinsic value as at the date of grant.

The weighted average fair value of options granted during the year was Rs. Nil (2015: Rs.55.86). The Black Scholes valuation model has been used for computing the weighted average fair value considering the following inputs:

* Not applicable since no ESOP''s were granted during the year.

The expected life of the stock is based on historical data and current expectations and is not necessarily indicative of exercise patterns that may occur. The expected volatility reflects the assumption that the historical volatility over a period similar to the life of the options is indicative of future trends, which may also not necessarily be the actual outcome.

9 During the year ended March 31, 2016, the Company has recognized deferred tax asset to the extent that there is virtual certainty supported by convincing evidence based on the future profitability and projections of the Company, backed by confirmed customer orders on hand as at the year end. The Management believes that there is sufficient assurance that future taxable income will be available against which the deferred tax assets can be realized.

10 The Company is in process of taking necessary steps to comply with the Transfer Pricing requirements relating to the preparation & maintenance of the Transfer Pricing documentation with respect to the specified domestic transactions entered into by the Company during financial year ended March 31, 2016. The Management is of the opinion that the specified domestic transactions are at arm''s length and hence the aforesaid legislation will not have any impact on the standalone financial statements, particularly on the amount of tax expense and that of provision for taxation.

11 The Company had filed petition with the Company Law Board for compounding of offence u/s. 297 of the erstwhile Companies Act, 1956 for the transactions entered with CMS Info Systems Private Limited between July 2009 to October 2011 and as at date, the petition is pending with the Company Law Board.

For periods subsequent to October 2011, the Company had filed an application with Central Government, Ministry of Corporate Affairs, seeking its approval u/s. 297(1) of the erstwhile Companies Act, 1956 for entering into contract with CMS Info Systems Private Limited which is pending approval.

12 Previous year comparatives

Previous year figures have been regrouped/re-arranged/reclassified, wherever necessary to confirm to the current year''s presentation.

---

Mar 31, 2015

1. During the year, the Company continued to incur substantial losses i.e. Rs. 919.73 lakhs before exceptional gain of Rs. 4,355.31 lakhs (2014 - loss of Rs. 721.42 lakhs) and has accumulated losses of Rs 12,777.25 lakhs (2014 - Rs. 16,099.37 lakhs) as at March 31, 2015. The management has taken several measures to cut costs and improve productivity and is reasonably confident of improved profitability in coming years. Based on the future business plan, the Company is confident of funding its operating and capital expenditure and continue business operations in the foreseeable future. Accordingly, these financial statements have been prepared on a going concern basis.

The Company has only one class of equity shares having a par value of Rs. 5 per share. Each holder of equity is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of directors is subject to the approval of the shareholders in ensuing Annual General Meeting.

In event of liquidation of the Company, the holders of equity shares would 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 declaration received from shareholders regarding beneficial interest, the above shareholding represent both legal and beneficial ownership of shares.

(e) Shares reserved for issue under options

For details of shares reserved for issue under the employee stock option (ESOP) plan of the Company, please refer note 38.

(a) Working capital loan from bank carries interest at 14.95% p.a. (2014: 14.7%) The loan is repayable in 35 monthly instalments of Rs 184 lakhs each and a final instalment of Rs 160 lakhs, after moratorium of 12 months from the date of loan. The loan is secured by certain land and buildings and fixed deposit of Rs 402 lakhs.

(b) Current maturities disclosed under the head current liabilities [Refer Note 9]

2. Contingent liabilities (to the extent not provided for)

March 31, 2015 March 31, 2014

(a) Claims against the Company not 336.49 308.48 acknowledged as debts

(b) Guarantees given by banks - 2.00

(c) Outstanding letters of credit 4,574.76 1,680.56

(d) Bills of exchange discounted 10,711.33 9,372.68 with banks

(e) The Company is also involved in certain litigations with third parties, the impact of which is not quantifiable. These cases are pending with various courts/forums and are scheduled for hearings. After considering the circumstances and legal evaluation thereon, the Company's management believes that these cases will not have any adverse impact on the financial statements.

3. Gratuity

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on retirement or termination at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with an insurance Company in the form of a qualifying insurance policy.

The following tables summaries the components of net benefit expense recognised in the statement of profit and loss and the funded status and amounts recognised in the balance sheet:

Notes:

1. The estimate of future salary increases considered in actuarial valuation takes into account inflation, seniority, promotion and other relevant factors such as supply & demand in the employment market.

2. The estimated rate of return on plan assets is determined based on the market prices prevailing on that date, applicable to the period over which the obligation is to be settled.

3. The Company expects to contribute Rs.792.68 lakhs to gratuity in 2015-16.

4. Segment information

a) Primary business segment

The Company is engaged in a single business segment of sale of garment, and hence, no additional disclosures are required, other than those already given in the financial statements.

b) Secondary business segment (by geographical area based on location of customers):

The Company mainly operates in two geographical areas of the world, i.e., India and Rest of World, the details of which are as below:

5. Related party disclosures

A. Names of related parties and description of relationship:

Description of Relationship Names of related parties

a. Parties where control exists:

Immediate Holding Company Blackstone FP Capital Partners (Mauritius)

Subsidiary Limited

Ultimate holding Company Blackstone FP Capital Partners (Mauritius)

V-B Limited

Wholly owned subsidiaries All Colour Garments Private Limited

Deejay Trading Private Limited

Glamourwear Apparels Private Limited

Madhin Trading Private Limited

Magenta Trading Private Limited

Rafter Trading Private Limited

Rajdin Apparels Private Limited

Reflexion Trading Private Limited

Rishikesh Apparels Private Limited

Robot Systems Private Limited

Seven Hills Clothing Private Limited

SNS Clothing Private Limited

Vignesh Apparels Private Limited

b. Key management personnel:

Director and Chief Executiv Mr. Gautam Chakravarti Officer

Chief Financial Officer Mr. Sumit Keshan (CFO)

6. Leasing arrangements

The Company's leasing arrangements in respect of its office, factory and residential premises are in the nature of operating leases. These leasing arrangements, which are usually cancellable at the option of the lessee, are for a total period ranging from eleven months to six years and are renewable with mutual consent. All leases include a clause to enable upward revision of the rental charge on a periodic basis as specified under the rental agreement. The charge on account of lease rentals for the year is Rs. 885.58 lakhs (2014: Rs. 744.63 lakhs).

7. Employee stock option Plans (Equity Settled)

In September 2010, the shareholders of the Company approved Stock Option Plan (ESOP 2010) in accordance with the guidelines issued by the Securities and Exchange Board of India (SEBI) for Employees Stock Options Plan. The plan covered all employees of the Company including employees of subsidiaries and directors and provided for the issue of 1,718,800 shares of Rs. 5 each. The Company follows intrinsic method of accounting for stock compensation cost pursuant to the Guidance Note on "Accounting for Employee Share - Based Payments" issued by the Institute of Chartered Accountants of India".

85,000 (2014: 1,290,000) options have been granted during the year and 1,136,668 (2014: 1,290,000) are outstanding as at March 31,2015. The vesting period ranges from 1 to 7 years. Weighted average of remaining contractual life is 8.35 years (2014: 9.25 years). The weighted average exercise price of all the options is Rs. 40.89 (2014: Rs. 36.70). There is no compensation cost since the exercise price is equal to the intrinsic value as at the date of grant.

The weighted average fair value of options granted during the year was Rs. 55.86 (2014: Rs. 26.56). The Black Scholes valuation model has been used for computing the weighted average fair value considering the following inputs:

The expected life of the stock is based on historical data and current expectations and is not necessarily indicative of exercise patterns that may occur. The expected volatility reflects the assumption that the historical volatility over a period similar to the life of the options is indicative of future trends, which may also not necessarily be the actual outcome.

8. The Company is in process of taking necessary steps to comply with the Transfer Pricing requirements relating to the preparation & maintenance of the Transfer Pricing documentation with respect to the specified domestic transactions entered into by the Company during financial year ended March 31, 2015. Management is of the opinion that the specified domestic transactions are at arm's length and hence the aforesaid legislation will not have any impact on the financial statements, particularly on the amount of tax expense and that of provision for taxation.

9. The Company had filed petition with the Company Law Board for compounding of offence u/s. 297 of the erstwhile Companies Act, 1956 for the transactions entered with CMS Info Systems Private Limited between July 2009 to October 2011 and as at date, the petition is pending with the Company Law Board.

For periods subsequent to October 2011, the Company had filed an application with Central Government, Ministry of Corporate Affairs, seeking its approval u/s. 297(1) of the erstwhile Companies Act, 1956 for entering into contract with CMS Info Systems Private Limited which is pending approval.

10. Depreciation on tangible fixed assets

Pursuant to the requirements of Schedule II of the Companies Act, 2013 ("the Act1), management has reassessed and changed, wherever necessary the useful lives to compute depreciation. Accordingly, the carrying amount as at April 1,2014 is being depreciated over the revised remaining useful life of the asset. The carrying value of Rs. 113.46 lakhs, in case of assets with nil revised remaining useful life as at April 1,2014, is reduced from the retained earnings as at such date. Further, had the Company continued with the previously assessed useful lives, charge for depreciation for the year would have been lower by Rs. 929.73 lakhs with consequential impact in the profits for the year.

11. Previous year comparatives

Previous year figures have been regrouped/re-arranged/reclassified, wherever necessary to conform to the current year's presentation.

---

Mar 31, 2013

1. Corporate Information

Gokaldas Exports Limited (''the Company'') was incorporated on March 1, 2004 by converting the erstwhile partnership firm Gokaldas India under Part IX of the Companies Act, 1956. Pursuant to the order of the Hon''ble High Court of Karnataka dated November 20, 2004, Gokaldas Exports Private Limited and The Unique Creations (Bangalore) Private Limited have been amalgamated with the Company, with April 1, 2004 being the appointed date. The Company currently operates a 100% Export Oriented Unit, a Domestic Tariff Area Unit and a Special Economic Zone Unit.

The Company is a public company domiciled in India and its shares are listed on two stock exchanges in India. The Company is engaged in the business of design, manufacture, and sale of a wide range of garments for men, women, and children and caters to the needs of several leading international fashion brands and retailers. The principal source of revenue for the Company is from export of garments and related products.

2. Basis of preparation of financial statements

The financial statements of the Company have been prepared in accordance with the generally accepted accounting principles in India (Indian GAAP) and complies in all material respects with the notified accounting standards under Companies (Accounting Standards) Rules (as amended), 2006 and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis except in case of assets for which provision for impairment is made and revaluation is carried out and derivative financial instruments which have been measured at fair value. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

3. Contingent liabilities (to the extent not provided for)

2013 2012

Claims against the Company not acknowledged as debts 278.43 240.23

Guarantees given by banks 19.81 15.10

Outstanding letters of credit 963.79 1,098.00

Bills discounted with banks 10,232.48 8,647.81

4. Gratuity

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on retirement or termination at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with an insurance Company in the form of a qualifying insurance policy.

The following tables summaries the components of net benefit expense recognised in the statement of profit and loss and the funded status and amounts recognised in the balance sheet:

5. Leasing Arrangements:

The Company''s leasing arrangements in respect of its office, factory and residential premises are in the nature of operating leases. These leasing arrangements, which are usually cancellable at the option of the lessee, are for a total period ranging from eleven months to six years and are renewable with mutual consent. All leases include a clause to enable upward revision of the rental charge on a periodic basis as specified under the rental agreement. The charge on account of lease rentals for the year is Rs. 675.67 lakhs (2012: Rs.843.52 lakhs).

Future obligations of lease rentals for non-cancellable period under respective lease agreements aggregate to Rs. 166.81 lakhs (2012: Rs. 194.01 lakhs)

6. The Company is in process of taking necessary steps to comply with the Transfer Pricing requirements relating to the preparation & maintenance of the Transfer Pricing documentation with respect to the specified domestic transactions entered into by the Company during financial year ended March 31, 2013. The Management is of the opinion that the specified domestic transactions are at arm''s length and hence the aforesaid legislation will not have any impact on the financial statements, particularly on the amount of tax expense and that of provision for taxation.

7. The Company has filed petition with the Company Law Board for compounding of offence u/s. 297 of the Companies Act, 1956 for the transactions entered with CMS Info Systems Private Limited between July 2009 to October 2011 and as at date, the petition is pending with the Company Law Board.

For periods subsequent to October 2011, the Company has filed an application with Central Government, Ministry of Corporate Affairs, seeking its approval u/s. 297(1) of the Companies Act, 1956 for entering into contract with CMS Info Systems Private Limited which is pending approval.

8. Previous year comparatives

Previous year figures have been regrouped/re-arranged/reclassified, wherever necessary to conform to the current year''s presentation.

---

Mar 31, 2012

1. Corporate Information

Gokaldas Exports Limited ('the Company') was incorporated on March 1, 2004 by converting the erstwhile partnership firm Gokaldas India under Part IX of the Companies Act, 1956. Pursuant to the order of the Hon'ble High Court of Karnataka dated November 20, 2004, Gokaldas Exports Private Limited and The Unique Creations (Bangalore) Private Limited have been amalgamated with the Company, with April 1, 2004 being the appointed date. The Company currently operates a 100% Export Oriented Unit, a Domestic Tariff Area Unit and a Special Economic Zone Unit.

The Company is a public company domiciled in India and its shares are listed on two stock exchanges in India. The Company is engaged in the business of design, manufacture, and sale of a wide range of garments for men, women, and children and caters to the needs of several leading international fashion brands and retailers. The principal source of revenue for the Company is from export of garments and related products.

2. Basis of preparation of financial statements

The financial statements of the Company have been prepared in accordance with the generally accepted accounting principles in India (Indian GAAP) and complies in all material respects with the notified accounting standards under Companies (Accounting Standards) Rules (as amended), 2006 and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis except in case of assets for which provision for impairment is made and revaluation is carried out. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

During the year ended March 31, 2012, the revised Schedule VI notified under the Companies Act, 1956 has become applicable to the Company, for the preparation and presentation of financial statements. The adoption of revised Schedule VI does not impact the recognition and measurement principles followed for the preparation of the financial statements. However, it has significant impact on the presentation and disclosure of the financial statements. The Company has reclassified previous year figures in accordance with the requirements applicable in current year.

(a) Terms/ rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs. 5 per share. Each holder of equity is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in ensuing Annual General Meeting.

In event of liquidation of the Company, the holders of equity shares would 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 ownership of shares.

Note :

(a) Term Loan from banks was taken under Technology Upgradation Fund (TUF) scheme and carries interest @ 14.25% (March 2011 : 11.25%). The loan is repayable in 52 monthly installments of Rs. 72 lakhs each commencing from September 2009. The loan is secured by hypothecation of plant and machinery acquired out of this TUF loan.

(b) Current maturities are disclosed under the head current liabilities [Refer Note 8]

3. Contingent liabilities (to the extent not provided for)

2012 2011

Claims against the Company not acknowledged as debts 240.23 239.02

Guarantees given by banks 15.10 305.60

Outstanding letters of credit 1,098.00 1,049.44

Bills discounted with banks 8,647.81 14,153.84

4. Gratuity

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on retirement or termination at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with an insurance Company in the form of a qualifying insurance policy.

The following tables summaries the components of net benefit expense recognised in the statement of profit and loss and the funded status and amounts recognised in the balance sheet:

Notes:

1. The estimate of future salary increases considered in actuarial valuation takes into account inflation, seniority, promotion and other relevant factors such as supply & demand in the employment market.

2. The estimated rate of return on plan assets is determined based on the market prices prevailing on that date, applicable to the period over which the obligation is to be settled,

3. The Company expects to contribute Rs.85 lakhs (Rs. 248.72 lakhs in 2011-12) to gratuity in 2012-13.

5. Segment information

a) Primary business segment

The Company is engaged in a single business segment of sale of garment, and hence, no additional disclosures are required, other than those already given in the financial statements.

6. Leasing Arrangements:

The Company's leasing arrangements in respect of its office, factory and residential premises are in the nature of operating leases. These leasing arrangements, which are usually cancellable at the option of the lessee, are for a total period ranging from eleven months to six years and are renewable with mutual consent. All leases include a clause to enable upward revision of the rental charge on a periodic basis as specified under the rental agreement. The charge on account of lease rentals for the year is Rs. 843.52 lakhs (2011: Rs.899.17 lakhs).

Future obligations of lease rentals for non cancellable period under respective lease agreements aggregate to Rs. 194.01 lakhs (2011 : Rs. 341.75 lakhs)

7. In previous year, there was a fire in the raw material warehouse of the Company in Bangalore and materials valued at Rs. 3,766.49 lakhs were fully destroyed. The Insurance claim was settled at Rs. 3,235.33 lakhs and the difference Rs. 531.16 lakhs was shown as extraordinary item.

8. Previous year comparatives

Previous year figures have been regrouped/re-arranged/reclassified, wherever necessary to conform to the current year's presentation.

---

Mar 31, 2011

(All amounts in Rs. Lakhs except otherwise stated)

A. Background

Gokaldas Exports Limited ('the Company') was incorporated on March 1, 2004 by converting the erstwhile partnership firm Gokaldas India under Part IX of the Companies Act, 1956. Pursuant to the order of the Hon'ble High Court of Karnataka dated November 20, 2004, Gokaldas Exports Private Limited and The Unique Creations (Bangalore) Private Limited have been amalgamated with the Company, with April 1, 2004 being the appointed date. The Company currently operates a 100% Export Oriented Unit, a Domestic Tariff Area Unit and a Special Economic Zone Unit.

The Company is engaged in the business of design, manufacture and sale of a wide range of garments for men, women and children and caters to the needs of several leading international fashion brands and retailers. The principal source of revenue for the Company is from export of garments and related products.

1. Contingent liabilities Amount in Rs Lakhs

2011 2010

Claims against the Company not acknowledged as debts 239.02 349.60

Guarantees given by banks 305.60 315.10

Outstanding letters of credit 1,049.44 364.37

Export Bills discounted with banks 14,153.84 13,849.46

Estimated amount of contracts remaining to be executed on capital accounts and not provided for (net of advances) 320.71 470.66

2. Export Promotion Capital Goods Scheme

The Company has imported capital goods without payment of duty under Export Promotion Capital Goods ('EPCG') Scheme upto March 31, 2010. Under the EPCG scheme, the Company has export obligations of Rs. 1,483.59 lakhs (2010 : Rs. 840.41 lakhs) to be fulfilled before November 05, 2017.

3. Gratuity

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on retirement or termination at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with an insurance Company in the form of a qualifying insurance policy.

The following tables summarise the components of net benefit expense recognised in the profit and loss account and the funded status and amounts recognised in the balance sheet:

4. Segment information

a) Primary business segment

The Company is engaged in a single business segment of sale of garment, and hence, no additional disclosures are required, other than those already given in the financial statements.

b) Secondary business segment (by geographical area based on location of customers):

Notes:

1. All fixed assets are located in India.

2. Figures in brackets relate to previous year.

5. Related party disclosures

A. Names of related parties and description of relationship:

Description of Relationship Names of related parties

a. Parties where control exists:

Immediate Holding Company Blackstone FP Capital Partners (Mauritius) V-B Subsidiary Limited

Ultimate Holding Company Blackstone FP Capital Partners (Mauritius) V-B Limited

Wholly Owned Subsidiaries All Colour Garments Private Limited

Deejay Trading Private Limited

Glamourwear Apparels Private Limited

Madhin Trading Private Limited

Magenta Trading Private Limited

Rafter Trading Private Limited

Rajdin Apparels Private Limited

Reflexion Trading Private Limited

Rishikesh Apparels Private Limited

Robot Systems Private Limited

Seven Hills Clothing Private Limited

SNS Clothing Private Limited

Vignesh Apparels Private Limited

b. Key management personnel:

Chairman Mr. Madanlal J Hinduja (upto January 15, 2011)

Managing Director Mr. Rajendra J Hinduja (upto March 31, 2011)

Executive Director Mr. Dinesh J Hinduja (upto March 31, 2011)

Chief Operating Officer - Production Mr. Ashwin R Hinduja

Chief Operating Officer - Marketing Mr. Vivek M Hinduja (upto September 30, 2010)

Chief Operating Mr. Gaurav D Hinduja (upto Officer - Marketing May 31, 2010)

c. Enterprises over which key management personnel and their relatives exercise significant influence with whom transactions have taken place during the year

Partnership Firm Hinduja Trading Company

DMR Enterprises Universal Garments

Private Limited Companies VAG Exports Private Limited

5. Leasing Arrangements:

The Company's leasing arrangements in respect of its office, factory and residential premises are in the nature of operating leases. These leasing arrangements, which are usually cancellable at the option of the lessee, are for a total period ranging from eleven months to six years and are renewable with mutual consent. The charge on account of lease rentals for the year is Rs. 899.17 lakhs (2010 : Rs. 675.57 lakhs).

6. On April 16, 2010, there was a fire in one of the raw material warehouses of the Company in Bangalore and materials valued at Rs. 3,766.49 lakhs were fully destroyed. The Insurance claim has been settled during the year and the Company has received Rs. 3,235.33 lakhs in full settlement of the claim. The difference between the amount claimed and settled, being Rs. 531.16 lakhs has been charged off as extraordinary item in the profit and loss account in the current year.

7. Previous year's figures have been regrouped / rearranged / reclassified, wherever necessary to conform to the current year's presentation.

---

Mar 31, 2010

A. Background

Gokaldas Exports Limited (the Company) was incorporated on March 1, 2004 by converting the erstwhile partnership firm Gokaldas India under Part IX of the Companies Act, 1956. Pursuant to the order of the Honble High Court of Karnataka dated November 20, 2004, Gokaldas Exports Private Limited and The Unique Creations (Bangalore) Private Limited have been amalgamated with the Company, with April 1, 2004 being the appointed date. The Company currently operates a 100% Export Oriented Unit, a Domestic Tariff Area Unit and a Special Economic Zone Unit.

The Company is engaged in the business of design, manufacture and sale of a wide range of garments for men, women and children and caters to the needs of several leading international fashion brands and retailers. The principal source of revenue for the Company is from export of garments and related products.

1. Contingent liabilities Amount in Rs. Lakhs

Particulars 2010 2009

Claims against the Company not acknowledged as debts 349.60 67.60

Guarantees given by banks 315.10 23.55

Outstanding letters of credit 364.37 1,221.90

Export Bills discounted with banks 13,849.46 17,220.14

Estimated amount of contracts remaining to be executed on

capital accounts and not provided for (net of advances) 470.66 90.40

Note: Certain industrial/ labour disputes are pending before various judicial authorities for which amounts are not ascertainable.

2. Export Promotion Capital Goods Scheme

The Company has imported capital goods without payment of duty under the Export Promotion Capital Goods Scheme. Under the scheme, the Company has export obligations of Rs. 840.41 lakhs (2009: Rs. 1205.59 lakhs ) to be fulfilled before November 05, 2017.

3. Gratuity

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on retirement or termination at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with an insurance company in the form of a qualifying insurance policy.

The following tables summarise the components of net benefit expense recognised in the profit and loss account and the funded status and amounts recognised in the balance sheet:

Notes:

1. The estimate of future salary increases considered in actuarial valuation takes into account inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.

2. The Company expects to contribute Rs. 190 Lakhs to gratuity in 2010-11.

4. Segment information

a) Primary business segment

The Company is engaged in a single business segment of sale of garment, and hence, no additional disclosures are required, other than those already given in the financial statements.

b) Secondary business segment (by geographical area based on location of customers):

Notes:

1. All fixed assets are located in India.

2. Figures in brackets relate to previous year.

6. Leasing Arrangements:

The Companys leasing arrangements in respect of its office, factory and residential premises are in the nature of operating leases. These leasing arrangements, which are usually cancellable at the option of the lessee, are for a total period ranging from eleven months to six years and are renewable with mutual consent.

Note: The above figures do not include provisions for encashable leave and gratuity as actuarial valuation is done for Company as a whole.

Note: Installed capacity cannot be quantified on account of a large variety of products that can be manufactured with varying specifications.

Notes:

i. The above consumption figures are shown after adjusting excesses and shortages ascertained on physical count, unserviceable items, etc.

ii. Quantitative information for accessories/ others is not provided as this comprises numerous items.

5. Post balance sheet event

On April 16, 2010, there was a fire in the raw material warehouse of the Company in Bangalore and materials valued at Rs. 3766.49 lakhs were fully destroyed. The Company has filed claim with the insurance company and management does not foresee any loss arising out of such event.

6. Previous years figures have been regrouped/rearranged/reclassified, wherever necessary to conform to the current years presentation.