Notes to Accounts of Page Industries Ltd.

Mar 31, 2025

l. Provisions and contingent liabilities
General

Provisions are recognised 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 recognised as a separate asset,
but only when the reimbursement is virtually certain.
The expense relating to a provision is presented in the
statement of profit and loss net of any reimbursement.

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 recognised
as a finance cost.

If the Company has a contract that is onerous, the
present obligation under the contract is recognised and
measured as a provision. However, before a separate
provision for an onerous contract is established, the
Company recognises any impairment loss that has
occurred on assets dedicated to that contract.

An onerous contract is a contract under which the
unavoidable costs (i.e., the costs that the Company
cannot avoid because it has the contract) of meeting
the obligations under the contract exceed the economic
benefits expected to be received under it. The
unavoidable costs under a contract reflect the least net
cost of exiting from the contract, which is the lower of
the cost of fulfilling it and any compensation or penalties
arising from failure to fulfil it. The cost of fulfilling a
contract comprises the costs that relate directly to the
contract (i.e., both incremental costs and an allocation
of costs directly related to contract activities).

Contingent liability is-

(i) a possible obligation arising from past events and
whose existence will be confirmed only by the
occurrence or non-occurrence of one or more
uncertain future events not wholly within the
control of the entity, or

(ii) a present obligation that arises from past events
but is not recognized because

- it is not probable that an outflow of resources
embodying economic benefits will be required
to settle the obligation, or

- the amount of the obligation cannot be
measured with sufficient reliability.

The Company does not recognize a contingent
liability but discloses its existence and other required
disclosures in notes to the financial statements, unless
the possibility of any outflow in settlement is remote.

Provisions and contingent liability are reviewed at
each reporting date.

m. Retirement and other employee benefits

Retirement benefit in the form of provident fund
and pension fund are defined contribution scheme.
The Company has no obligation, other than the
contribution payable. The Company recognizes
contribution payable to provident fund and pension
fund as expenditure, when an employee renders the
related service. If the contribution payable to the
scheme for service received before the balance sheet
date exceeds the contribution already paid, the deficit
payable to the scheme is recognized 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 recognized as an asset to the
extent that the pre-payment will lead to, for example,
a reduction in future payment or a cash refund.

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 recognizes expected
cost of short-term employee benefit as an expense,
when an employee renders the related service.

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 reporting date.
Actuarial gains/losses are immediately taken to the
statement of profit and loss and are not deferred.
The obligations are presented as current liabilities
in the balance sheet if the entity does not have an
unconditional right to defer the settlement for at
least twelve months after the reporting date.

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

The cost of providing benefits under the defined
benefit plan is determined using the projected unit
credit method using actuarial valuation to be carried
out at each balance sheet date.

Re-measurements, comprising of actuarial 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 Ind
AS 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 related
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 in 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. 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.

Financial assets are classified, at initial recognition,
as subsequently measured at amortised cost and
fair value through profit or loss. The classification of
financial assets at initial recognition depends on the
financial asset''s contractual cash flow characteristics
and the Company''s business model for managing
them. With the exception of trade receivables that
do not contain a significant financing component
or for which the Company has applied the practical
expedient, the Company initially measures a
financial asset at its fair value plus, in the case of a
financial asset not at fair value through profit or
loss, transaction costs. Trade receivables that do
not contain a significant financing component or
for which the Company has applied the practical
expedient are measured at the transaction price as
disclosed in section 2.3.(c) Revenue recognition.

In order for a financial asset to be classified and
measured at amortised cost, it needs to give rise to
cash flows that are ''solely payments of principal and
interest (SPPI)'' on the principal amount outstanding.
This assessment is referred to as the SPPI test and
is performed at an instrument level. Financial assets
with cash flows that are not SPPI are classified
and measured at fair value through profit or loss,
irrespective of the business model.

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.

(i) 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. This category is the most
relevant to the Company. After initial measurement,
such financial assets are subsequently measured
at amortised cost using the effective interest rate
(EIR) method and are subject to impairment as per

the accounting policy applicable to ''Impairment
of financial assets.'' Amortised cost is calculated by
taking into account any discount or premium on
acquisition and fees or costs that are an integral part
of the EIR. The EIR amortisation is included in other
income in the profit or loss. The losses arising from
impairment are recognised in the profit or loss. The
Company''s financial assets at amortised cost includes
trade receivables, cash and cash equivalents, other
bank balances and other financial assets. For more
information on financial assets, refer note 44.

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 and 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

Loss allowance for expected credit losses is recognised
for financial assets measured at amortised cost and
fair value through the statement of profit and loss.

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 - Financial Instruments.

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.

For financial assets maturing within one year from
the balance sheet date, the carrying amounts

approximates fair value due to the short maturity of
these instruments.

De-recognition of financial assets

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.

(ii) 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.

a) 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.

b) Supplier finance arrangements

The Company has established supplier finance
arrangements [Refer Note 20(b)]. The Company
evaluates whether financial liabilities covered such
arrangements continue to be classified within
trade payables, or they need to be classified as a
borrowing or as part of other financial liabilities/ as
a separate line item on the face of the balance sheet.
Such evaluation requires exercise of judgment basis
specific terms of the arrangement.

The Company classifies financial liabilities covered
under supplier finance arrangement within trade
payables in the balance sheet only if (i) the obligation
represents a liability to pay for goods and services,

(ii) is invoiced and formally agreed with the supplier,

(iii) is part of the working capital used in its normal
operating cycle, (iv) the company is not legally
released from its original obligation to the supplier,
and has not assumed a new obligation toward the
bank, and another party (iv) there is no substantial
modification to the terms of the liability.

If one or more of the above criteria are met, the
Company derecognises its original liability toward
the supplier and recognise a new liability toward
the bank which is classified as bank borrowing or
other financial liability, depending on factors such
as whether the Company (i) has obligation toward
bank, (ii) is getting extended credit period such that
obligation is no longer part of its working capital

cycle, (iii) is paying interest directly or indirectly, (iv)
has provided guarantee or security, and/ or (v) is
recognized as borrower in the bank books.

Cash flows related to liabilities arising from supplier
finance arrangements that continue to be classified
in trade payables in the balance sheet are included
in operating activities in the statement of cash flows,
when the Company finally settles the liability.

In cases, where the Company has derecognised its
original liability toward the supplier and recognise
a new liability toward the bank, the Company has
assessed that the bank is acting as its agent in making
payment to the supplier. Accordingly, the Company
presents operating cash outflow and financing cash
inflow, when bank made payment to the supplier. The
payment made by the Company to the bank toward
interest, if any, as well as on settlement is presented
as financing cash outflow.

Off-setting of financial instruments

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

o. Cash and cash equivalents

Cash and cash equivalent in the Ind AS balance sheet
comprise cash at banks and on hand and short-term
deposits with an original maturity of three months or
less that are readily convertible to a known amount of
cash and 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, as they are considered an
integral part of the Company''s cash management.

p. Dividend

The Company recognises a liability to pay dividend
to equity holders of the parent when the distribution
is authorised, and the distribution is no longer at
the discretion of the Company. As per the corporate
laws in India, a distribution is authorised when it is
approved by the shareholders. A corresponding
amount is recognised directly in equity. Final
dividends on shares are recorded as a liability on
the date of approval by the shareholders and interim
dividends are recorded as a liability on the date of
declaration by the Company''s Board of Directors.

q. Foreign currencies

The Ind AS financial statements are presented in INR,
which is also the Company''s functional currency.

Transactions in foreign currencies are initially recorded
at functional currency spot rates at the date the
transaction first qualifies for recognition. However, for
practical reasons, the Company uses average rate if the
average approximates the actual rate at the date of the
transaction.

Monetary assets and liabilities denominated in foreign
currencies are translated at the functional currency
spot rates of exchange at the reporting date.

Exchange differences arising on settlement or
translation of monetary items are recognised in profit
or loss.

Non-monetary items that are measured in terms of
historical cost in a foreign currency are translated using
the exchange rates at the dates of the initial transactions.
Non-monetary items measured at fair value in a foreign
currency are translated using the exchange rates at the
date when the fair value is determined. The gain or loss
arising on translation of non-monetary items measured
at fair value is treated in line with the recognition of the
gain or loss on the change in fair value of the item (i.e.,
translation differences on items whose fair value gain
or loss is recognised in OCI or profit or loss are also
recognised in OCI or profit or loss, respectively).

Exchange differences arising on the retranslation or
settlement of other monetary items are included in the
statement of profit and loss for the period.

r. Corporate social responsibility (‘CSR’) expenditure

The Company charges its CSR expenditure during the
year to the statement of profit and loss.

s. Earnings per share

Basic earnings per share is calculated by dividing the net
profit or loss attributable to equity holder of the Company
by the weighted average number of equity shares
outstanding during the period. Partly paid equity shares
are treated as a fraction of an equity share to the extent
that they are entitled to participate in dividends relative to
a fully paid equity share during the reporting period.

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

t. Events after the reporting period

If the Company receives information after the reporting
period, but prior to the date of approved for issue,
about conditions that existed at the end of the reporting
period, it will assess whether the information affects
the amounts that it recognises in its Ind AS financial
statements. The Company will adjust the amounts
recognised in its financial statements to reflect any
adjusting events after the reporting period and update
the disclosures that relate to those conditions in light
of the new information. For non-adjusting events after
the reporting period, the Company will not change the
amounts recognised in its Ind AS financial statements,
but will disclose the nature of the non-adjusting event
and an estimate of its financial effect, or a statement
that such an estimate cannot be made, if applicable.

2.4 Standard notified but not yet effective

(i) Amendments to Ind AS 21 - Lack of exchangeability

The MCA notified amendments to Ind AS 21 The effects
of changes in foreign exchange rates to specify how an
entity should assess whether a currency is exchangeable
and how it should determine a spot exchange rate
when exchangeability is lacking. The amendments also
require disclosure of information that enables users
of its Ind AS financial statements to understand how
the currency not being exchangeable into the other
currency affects, or is expected to affect, the entity''s
financial performance, financial position and cash flows.

The amendments are effective for annual reporting
periods beginning on or after 1 April 2025. When
applying the amendments, an entity cannot restate
comparative information.

The amendments are not expected to have a material
impact on the Company''s Ind AS financial statements.

2.5 Climate - related matters

The Company considers climate-related matters in
estimates and assumptions, where appropriate. This
assessment includes a wide range of possible impacts
on the Company due to both physical and transition
risks. Even though the Company believes its business
model and products will still be viable after the transition
to a low-carbon economy, climate-related matters
increase the uncertainty in estimates and assumptions
underpinning several items in the Ind AS financial
statements. Even though climate-related risks might not
currently have a significant impact on measurement, the
Company is closely monitoring relevant changes and
developments, such as new climate-related legislation.

35 Income tax

The Company is subject to income tax in India on the basis of Ind AS financial statements. 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.

Pursuant to the Taxation Law (Amendment) Ordinance, 2019 (‘Ordinance'') issued by Ministry of Law and Justice (Legislative
Department) on September 20, 2019 which is effective from April 1, 2019, domestic companies have the option to pay income tax
at 22% plus applicable surcharge and cess (‘new tax regime'') subject to certain conditions. The Company based on the current
projections has chosen to adopt the reduced rates of tax as per the Income Tax Act, 1961 from the financial year 2020-21 and
accordingly the Company has accounted deferred tax asset based on the reduced applicable tax rates.

36 Earnings per share (‘EPS’)

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity shareholders 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.

Diluted EPS amounts are calculated by dividing the profit attributable to equity shareholders 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:

i) Plan assets are fully represented by balance with the ICICI Prudential Life Insurance Company Limited

ii) 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.

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

iv) Plan Characteristics and Associated Risks: The Gratuity scheme is a Defined Benefit Plan that provides for a lump sum
payment made on exit either by way of retirement, death or disability. The benefits are defined on the basis of final salary
and the period of service and paid as lump sum at exit. The Plan design means the risks commonly affecting the liabilities
and the financial results are expected to be:

a. Discount rate risk : The defined benefit obligation calculated uses a discount rate based on government bonds. If bond

yields fall, the defined benefit obligation will tend to increase

b. Salary inflation risk : Higher than expected increases in salary will increase the defined benefit obligation

c. Demographic risk : This is the risk of variability of results due to unsystematic nature of decrements that include mortality,

withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligation is not straight
forward and depends upon the combination of salary increase, discount rate and vesting criteria. It is important not to
overstate withdrawals because in the financial analysis the retirement benefit of a short career employee typically costs
less per year as compared to a long service employee.

39 Leases

I. Company as a lessee

The Company has lease contracts for its factories and offices used in its operations. These leases generally have
lease terms between 11 months and 20 years. The Company''s obligations under its leases are secured by the
lessor''s title to the leased assets. Generally, the Company is restricted from assigning and subleasing the leased
assets. There are several lease contracts that include extension and termination options at mutual consent.

The Company has lease contracts for its factory land. These leases generally have lease terms between 10 years
and 99 years. The Company''s obligations under its leases are secured by the lessor''s title to the leased assets.
The Company has lease contracts that include extension and termination options. The Company applies judgement
in evaluating whether it is reasonably certain whether or not to exercise the option to renew or terminate the lease.
That is, it considers all relevant factors that create an economic incentive for it to exercise either the renewal or
termination. After the commencement date, the Company reassesses the lease term if there is a significant event
or change in circumstances that is within its control and affects its ability to exercise or not to exercise the option
to renew or to terminate (e.g., construction of significant leasehold improvements or significant customisation to
the leased asset).

The Company applies the ''short-term lease'' and ''lease of low-value assets'' recognition exemptions for certain
leases.

b. Contingent liabilities

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 aforementioned amounts under disputes are as per the demands from various authorities for the respective periods
and has not been adjusted to include further interest and penalty leviable, if any, at the time of final outcome of the appeals.

(A) During October 2020, the Company received summons from Directorate of Revenue Intelligence (DRI), Indirect Taxes
with respect to enquiry under the Customs Act, 1962 regarding valuation of certain goods imported by the Company.
The Company had received demand order amounting to '' 1,271.05 million (including fine and penalty '' 896.97 million)
from Commissioner of Customs against such matter. The Company had filed an appeal against the aforesaid demand
before Customs, Excise and Service Tax Appellate Tribunal (CESTAT). During the year ended March 31, 2024, the
Company had received a favourable order from CESTAT against the aforesaid matter. The Commissioner of Customs
appealed to the Supreme Court which was dismissed by the Supreme Court during the year ended March 31, 2025
citing concurrence with the view taken by the Tribunal.

(ii) The Hon''ble High Court of Karnataka, based on a preliminary hearing of writ petition filed by the Karnataka Employers''
Association, of which, the Company is a Member, on February 02, 2016, has stayed the retrospective applicability of
The Payment of Bonus (Amendment) Act, 2015 from April 01, 2014. The Hon''ble High Court has further ordered that the
amended provision shall be implemented effective from FY 2015-16 pending disposal of the writ petition.

(iii) The Company has certain disputes pertaining to customers, vendors and employee related matters which the
management is contesting before various forums. The management does not expect any adverse financial implications
in this regard.

(iv) The Code on Social Security, 2020 (‘Code'') relating to employee benefits during employment and post employment
benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. Certain
sections of the Code came into effect on May 03, 2023. However, the final rules/interpretation have not yet been issued.
Based on a preliminary assessment, the entity believes the impact of the change will not be significant.

(v) The Hon''ble Supreme Court of India in the month of February 2019 had passed a judgement relating to definition of
wages under the Provident Fund Act, 1952. The Management is of the view that there are interpretative challenges on
the application of the judgement retrospectively. Based on management assessment, the Company does not expect any
material impact of the said judgement.

(a) Information about reportable segments

“Basis of identifying operating segments / reportable segments:

(i) 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 Operating Decision Maker (CODM) 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 financial statements are also applied to record revenue and expenditure in individ¬
ual 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 segment on an
appropriate basis. Certain items are not specifically allocable to individual segments as the underlying services are used in¬
terchangeably. The Company therefore believes that it is not practical to provide segment disclosures relating to such items
and accordingly such items are separately disclosed as ‘unallocated''

(ii) Reportable segments:

An operating segment is classified as reportable segment if reported revenue (including inter-segment revenue) or absolute
amount of result or assets exceed 10% or more of the combined total of all the operating segments.”

The Company has one business unit based on its products and has one reportable segment. The Company''s Board of Directors is
the Chief Operating Decision Maker (CODM). The Board monitors the operating results of its single business unit for the purpose
of making decisions about resource allocation and performance assessment. The following tables present revenue and non-cur¬
rent operating assets details of the Company for the year ended March 31, 2025 and March 31, 2024.

The preparation of the Company''s Ind AS 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. 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 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 impairment
of non financial assets, taxes, fair value measurement of
financial instruments, contingencies, defined benefit plans
(gratuity benefits), provision for inventory obsolescence,
leases - estimating the incremental borrowing rate, useful
life of assets considered for depreciation of property, plant
and equipments and provision for dealer incentive and
accrual for sales return.

(i) 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 Ind AS 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.

Impairment of non financial assets:

Determining whether property, plant and equipment and
capital work-in-progress are impaired requires an estimation
of the value in use of the respective asset or the relevant
cash generating units. The value in use calculation is based
on DCF model. Further, the cash flow projections are based
on estimates and assumptions which are considered as
reasonable by the management.

Taxes

Deferred tax assets are recognised for unused tax losses
to the extent that it is probable that taxable profit will be
available against which the same can be utilised. Significant

management judgement is required to determine the
amount of deferred tax assets that can be recognised,
based upon the likely timing and the level of future taxable
profits together with future tax planning strategies. Refer
note 7 and 35 for further disclosures.

Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities
recorded in the balance sheet cannot be measured based on
quoted prices in active markets, their fair value is measured
using valuation techniques including the DCF model. The
inputs to these models are taken from observable markets
where possible, but where this is not feasible, a degree of
judgement is required in establishing fair values. Judgements
include considerations of inputs such as liquidity risk, credit
risk and volatility. Changes in assumptions about these factors
could affect the reported fair value of financial instruments.
Refer note 44 for further disclosures.

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. Refer
note 40 (b) for further disclosures.

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 where remaining maturity of such bond
correspond to expected term of defined benefit obligation.
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 for India.
Further details about gratuity obligations are given in note 38.

Provision for inventory obsolescence

Inventory obsolescence provision are determined using
policies framed by the Company and in accordance with
the methodologies that the Company deems appropriate
to the business. Significant judgement is exercised in
identifying the slow-moving and obsolete inventories and
in assessing whether provision for obsolescence should be
recognized.

Leases - Estimating the incremental borrowing rate

The Company cannot readily determine the interest rate
implicit in the lease, therefore, it uses its incremental
borrowing rate (IBR) to measure lease liabilities. The IBR is
the rate of interest that the Company would have to pay to
borrow over a similar term, and with a similar security, the
funds necessary to obtain an asset of a similar value to the
right-of-use asset in a similar economic environment. The
IBR therefore reflects what the Company ‘would have to
pay'', which requires estimation when no observable rates
are available or when they need to be adjusted to reflect the
terms and conditions of the lease. The Company estimates
the IBR using observable inputs (such as market interest
rates) when available and is required to make certain entity-
specific estimates.

Useful life of assets considered for depreciation of
property, plant and equipments

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 management at the time the asset is
acquired and reviewed at each financial year end. The lives
are based on prior asset usage experience and the risk of
technological obsolescence.

Provision for dealer incentive and accrual for sales
return

The Company has various incentive schemes for its
retailers and distributors which are based on volume
of sales achieved during the stipulated period. The
estimate of sales likely to be achieved by each retailer
/ distributor is based on judgment, historic trends and
assessment of market conditions. The Company reviews
the trend at regular intervals and accordingly makes
a provision for such incentives at each reporting date.

The Company has contracts with customers which entitles
them the right to return. The Company makes provision for
such right to return, based on historic trends.

44 Disclosures on financial instruments

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

The details of material 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, financial liability and equity instrument are disclosed
in note 2.3(b) and 2.3(n), to the Ind AS financial statements.

(a) Financial assets and liabilities

The management assessed the trade receivables, trade payables, cash and cash equivalents, other bank balances, other financial
assets, borrowings, lease liabilities and other financial liabilities approximate their carrying amounts largely due to the short-term
maturities of these instruments.

Assumptions used in estimating fair value: The fair value of the financial assets and liabilities is included at the amount at which the
instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

The following tables presents the carrying value and fair value of each category of financial assets and liabilities as at March 31, 2025
and March 31, 2024:

(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.

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.

(ii) 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.

(iii) The Company does not have any Level 1 and Level 2 financial instruments, nor there have been no transfers between Level 1, Level 2
and Level 3 for the years ended March 31, 2024 and March 31, 2023.

(c) Financial risk management objectives and policies

The Company''s principal financial liabilities comprise borrowings, lease liabilities, trade and other payables. The main purpose of these
financial liabilities is to finance the Company''s operations. The Company''s principal financial assets include trade receivables, other
financial assets and cash and bank balances derived from its operations.

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.

(a) 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 doesn not have significant exposure to the risk of changes in market interest rates as there are no
outstanding borrowings as at March 31, 2025 and March 31, 2024.

(b) 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 activities. The Company''s exposure to foreign currency changes from financing activities, investing activities and other
currencies is not material. Currently, the Company does not enter into any derivative financial instruments to hedge its foreign
currency risk exposures.

The sensitivity analysis has been based on the composition of the Company''s financial assets and liabilities at March 31, 2025 and
March 31, 2024. The period end balances are not necessarily representative of the average debt outstanding during the period.

Foreign currencies

USD = United States Dollar
EUR = EURO

(c) 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, cash and cash equivalents, and other financial assets of the Company.

The carrying value of financial assets represents the maximum credit risk. The maximum exposure to credit risk was '' 6,825.99
million and '' 5,035.37 million as at March 31, 2025 and March 31, 2024 respectively, being the total carrying value of trade
receivables, cash and cash equivalents, other bank balances and other financial assets.

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. Outstanding customer receivables are regularly monitored and major customers are
generally secured by obtaining security deposits/bank guarantee. The expected credit loss allowance is based on the ageing of
the receivables that are due and rates used in the provision matrix.

(d) 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 limits from various banks. The Company invests its surplus funds in bank fixed deposits,
which carry no or low market risk.

The Company monitors its risk of 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 loans, etc. The Company assessed the concentration
of risk with respect to refinancing its debt and concluded it to be medium.

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

46 Capital management

The Company''s capital management is intended to create value for the 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 short term bank borrowings.

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 shareholders 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 net debt divided by total capital plus net
debt. The Company''s policy is to keep the gearing ratio at an optimum level to ensure that the debt related covenants 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.

No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, 2025 and
March 31, 2024.

47 Other statutory information

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for
holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder.

(ii) The Company does not have any transactions with struck off company under section 248 of Companies Act, 2013.

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

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

(v) The Company has not advanced or loaned or invested funds to any other person or entity, including foreign entities (Intermediaries)
with the understanding that the Intermediary shall:

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

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

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

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

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

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

(vii) The Company has no such transaction which is not recorded in the books of accounts that has been surrendered or disclosed
as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other
relevant provisions of the Income Tax Act, 1961.

48 MCA has amended the Rule 3 of the Companies (Accounts) Rules, 2014 (the "Accounts Rules”) vide notification dated August
05, 2022, relating to the mode of keeping books of account and other books and papers in electronic mode. Back-ups of the
books of account

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Mar 31, 2023

38 Segment information

The Company has one business unit based on its products and has one reportable segment. The Company''s Board of Directors is the Chief Operating Decision Maker (CODM). The Board monitors the operating results of its single business unit for the purpose of making decisions about resource allocation and performance assessment. The following tables present revenue and non-current operating assets details of the Company for the year ended 31 March 2023 and 31 March 2022.

39 Financial assets measured at fair value through profit/loss:

The fair values of the Company''s security deposits and loans are determined by using Discounted Cash Flow (DCF) method (Level 3) using discount rate that reflects the issuer''s borrowing rate for the respective financial asset/liability as at the end of the reporting period.

The carrying value of trade receivables, trade payables, cash and cash equivalents, other bank balances, shortterm borrowings and other current financial assets and liabilities approximate their fair values largely due to the short-term maturities of these instruments.

There are no transfers between levels during the year ended 31 March 2023 and 31 March 2022.

40 Financial risk management objectives and policies

The Company''s activities expose it to the following risks:

a) Credit risk

b) Liquidity risk

c) Market risk

a) Credit risk

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

i) Trade receivables

Customer credit risk is managed by the Company through established policy, procedures and control relating to customer credit risk management. Outstanding customer receivables are regularly monitored and major customers are generally secured by obtaining security deposits/bank guarantee or other forms of credit insurance. Refer below for movement of impairment allowance.

ii) Financial instruments, cash deposits etc.

Credit risk is limited as the Company generally invests in deposits with banks and financial institutions with high credit ratings assigned by international and domestic credit rating agencies. Investments primarily include investments in fixed deposits. Counterparty credit limits are reviewed by the Company periodically and the limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterparty''s potential failure to make payments.

b) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation. Typically the Company ensures that it has sufficient cash on demand to meet expected short term operational expenses. The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of internal accruals and borrowings as required.

c) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk: interest rate risk and foreign currency risk. Financial instruments affected by market risk include borrowings, trade receivable and trade payables.

Interest rate risk is the risk that the fair value or future cash flows of the Company''s financial instruments will fluctuate because of changes in market interest rates. The Company does not have any significant exposure to borrowings with variable interest rates.

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 does not have significant foreign currency exposure and hence, is not exposed to any significant foreign currency risk.

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder.

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

(iv) The Company does not have any Cryptocurrency transactions / balances during the financial year.

(v) The Company has not advanced or loaned or invested funds to any other person or entity, including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

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

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

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

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

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

(vii) The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

(viii) The Company is maintaining its books of account in electronic mode and these books of account are accessible in India at all times and the back-up of books of account has been kept in servers physically located in India on a daily basis from the applicability date of the Companies (Accounts) Rules, 2014, i.e. 5 August 2022 onwards.

44 The Code on Social Security, 2020 (''Code'') relating to employee benefits during employment and postemployment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified and the final rules/ interpretation have not yet been issued. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective.

45 Previous year''s figures have been regrouped and reclassified wherever necessary to conform to the current year presentation.

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Mar 31, 2022

(iv) Shares reserved for issue under options and contracts:

Refer Note 33 for details of shares to be issued under employee stock option Scheme (ANUP ESOS 2019).

(v) In the period of five years immediately preceding March 31, 2022:

i) The Company has allotted 1,01,93,962 shares of '' 10/- each as fully paid without payment being received in cash pursuant to the Scheme of Arrangement sanctioned by National Company Law Tribunal vide its order dated October 26, 2018 between Arvind Limited, Arvind Fashion Limited, the Company and The Anup Engineering Limited in the year 2018-2019.

ii) The Company has not allotted any equity shares by way of bonus issue.

iii) Equity shares extinguished on buy-back

The Company has bought back 3,87,850 equity shares at an average price of '' 642.50 per equity share for an aggregate consideration of '' 2492.11 Lakhs excluding Transaction Costs. The buy-back commenced on February 24, 2021 and closed on March 15, 2021. All the shares bought back have been extinguished as per the records of the depositories.

(vi) Objective, policy and procedure of capital management, refer Note 39.

The description of the nature and purpose of each reserve within equity is as follows:

a. Capital reserve

Capital Reserve is created due to amalgamation/Business Combinations.

b. Capital Redemption Reserve

As per Companies Act, 2013, capital redemption reserve is created when company purchases its own shares out of free reserves or securities premium. A sum equal to the nominal value of the shares so purchased is transferred to capital redemption reserve.

c. Securities premium account

Securities premium reserve is created due to premium on issue of shares. These reserve is utilised in accordance with the provisions of the Companies, Act.

d. Share based payment reserve

This reserve relates to share options granted by the Company to its employee share option plan. Further information about share-based payments to employees is set out in Note 33.

Note : The Company has decided to exercise the option permitted under section 115BAA of the Income-tax Act, 1961 for the year 2019-2020 as introduced by the Taxation Laws (Amendment) Ordinance, 2019 which was subsequently converted into an Act, at the time of filing return of income. Accordingly, the Company has recognised provision for income taxes based on the rate prescribed in the aforesaid section. Further, management reviewed current tax and the components of deferred tax assets/ liabilities leading to a reassessment of its estimates compared to earlier periods. Such re-measurement and change in rate of tax resulted in one-time tax credit of '' 443.03 Lakhs which is shown under (Excess)/Short Provision for the year ended March 31, 2021.

Reconciliation of tax expense and the accounting profit multiplied by domestic tax rate for the year ended March 31, 2022 and March 31, 2021.

Note 28 : Foreign Exchange Derivatives and Exposures not hedged

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

All derivative financial instruments are recognized as assets or liabilities on the balance sheet and measured at fair value. The accounting for changes in the fair value of a derivative instrument depends on the intended use of the derivative and the resulting designation.

The fair values of all derivatives are separately recorded in the balance sheet within current and non-current assets and liabilities depending upon the maturity of the derivatives.

The use of derivative instruments is subject to limits, authorities and regular monitoring by appropriate levels of management. The limits, authorities and monitoring systems are periodically reviewed by management and the Board. The market risk on derivatives is mitigated by changes in the valuation of the underlying assets, liabilities or transactions, as derivatives are used only for risk management purposes.

However, the Company does not have any of derivative contracts outstanding as at reporting date.

Note 29 : Segment Reporting Identification of Segments:

The chief operational decision maker monitors the operating results of its Business segment separately for the purpose of making decision about resource allocation and performance assessment. Segment performance is evaluated based on profit or loss and is measured consistently with profit or loss in the financial statements. Operating segment have been identified on the basis of nature of products and other quantitative criteria specified in the Ind AS 108. Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (“CODM”) of the company.

Operating Segments:

The Company''s business activity falls within a single operating business segment of Engineering products.

Information about major customers:

Considering the nature of business of company in which it operates, the company deals with various customers including multiple geographics. There are three (3) customers together contributing '' 17,664.70 Lakhs (March 31, 2021 : 3 customers, '' 14,583.61 Lakhs)of the total revenue of the Company from domestic and export sales.

Note(a) Employees of the Company receive benefits from a provident fund, which is a defined contribution plan. The eligible employees and the Company make monthly contributions to the provident fund plan equal to a specified percentage of the employees'' salary. Amounts collected under the provident fund plan are deposited in a government administered provident fund. The remaining portion is contributed to the government-administered pension fund. Employees of the Company receive benefits from a government administered provident fund, which is a defined contribution plan. The Company has no further obligation to the plan beyond its monthly contributions. Such contributions are accounted for as defined contribution plans and are recognised as employee benefits expenses when they are due in the Statement of profit and loss.

(b) The Company''s Superannuation Fund is administered by Life Insurance Company. The Company has no further obligations to the plan beyond its contribution.

B. Defined benefit plans:

The Company has following post employment benefit plans which are in the nature of defined benefit plans:

Gratuity

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service. The Gratuity plan is a Funded plan administered by a Trust and the Company makes contributions to recognised Trust in India.

Liabilities with regard to the Gratuity Plan are determined by actuarial valuation, performed by an independent actuary, at each Balance Sheet date using the projected unit credit method. The Company fully contributes all ascertained liabilities to the The Anup Engineering Limited Employees'' Gratuity Fund Trust (the Trust). Trustees administer contributions made to the Trusts and contributions are invested in a scheme as permitted by Indian law.

The Company recognizes the net obligation of a defined benefit plan in its Balance Sheet as an asset or liability. Gains and losses through remeasurements of the net defined benefit liability/(asset) are recognized in other comprehensive income and are not reclassified to profit or loss in subsequent periods. The actual return of the portfolio of plan assets, in excess of the yields computed by applying the discount rate used to measure the defined benefit obligations recognized in other comprehensive income.

The above sensitivity analysis may not be representative of the actual benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated. In presenting the above sensitivity analysis, the present value of defined benefit obligation has been calculated using the projected unit credit method at the end of reporting period.

In presenting the above sensitivity analysis, the present value of defined benefit obligation has been calculated using the projected unit credit method at the end of reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognized in the balance sheet. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared with the previous period.

C. Other Long term employee benefit plans:

Leave encashment

The Company has a policy on leave encashment which are both accumulating and non-accumulating in nature. The expected cost of accumulating leave encashment is determined by actuarial valuation performed by an independent actuary at each Balance Sheet date using projected unit credit method on the additional amount expected to be paid/availed as a result of the unused entitlement that has accumulated at the Balance Sheet date. Expense on non-accumulating compensated absences is recognized in the period in which the absences occur. The liability of leave encashment is funded through Life Insurance Corporation.

The Company has recognised '' 14.49 Lakhs (March 31, 2021: '' 17.41 Lakhs) as expenses and included in Note No. 21 "Employee benefit expense".

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values.

The fair value of borrowings is calculated by discounting future cash flows using rates currently available for debts on similar terms, credit risk and remaining maturities.

For financial assets and financial liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

Note 38 : Financial instruments risk management objectives and policies

The Company''s activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Company''s risk management assessment and policies and processes are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and the Company''s activities.

The Company''s risk management is carried out by a Treasury department under policies approved by the Board of directors. The Company''s treasury identifies, evaluates and hedges financial risks in close co-operation with the Company''s operating units. The board provides written principles for overall risk.

(a) Market risk

Market risk refers to the possibility that changes in the market rates may have impact on the Company''s profits or the value of its holding of financial instruments. The Company is exposed to market risks on account of foreign exchange rates, interest rates, underlying equity prices, liquidity and other market changes.

Future specific market movements cannot be normally predicted with reasonable accuracy.

(a1) Interest rate risk

Interest rate risk refers to the possibility that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rate.

The Company is exposed to interest rate risk of short-term and long-term floating rate instruments and on the refinancing of fixed rate debt. The Company''s policy is to maintain a balance of fixed and floating interest rate borrowings and the proportion of fixed and floating rate debt is determined by current market interest rates. The borrowings of the Company are principally denominated in Indian Rupees with mix of fixed and floating rates of interest. These exposures are reviewed by appropriate levels of management at regular interval.

As on March 31,2022, the Company does not have any borrowings.

(a2) Foreign currency risk

The Company''s foreign currency risk arises from its foreign operations and foreign currency transactions. The fluctuation in foreign currency exchange rates may have potential impact on the income statement and equity, where any transaction references more than one currency or where assets/liabilities are denominated in a currency other than the functional currency of the Company. The major foreign currency exposures for the Company are denominated in USD and EURO.

Since a part of the Company''s revenue is in foreign currency and major part of the costs are in Indian Rupees, any movement in currency rates would have impact on the Company''s performance. Exposures on foreign currency sales are managed through the Company''s hedging policy, which is reviewed periodically to ensure that the results from fluctuating currency exchange rates are appropriately managed. The Company strives to achieve asset liability offset of foreign currency exposures and only the net position is hedged. Consequently, the overall objective of the foreign currency risk management is to minimize the short term currency impact on its revenue and cash-flow in order to improve the predictability of the financial performance. The Company may use forward contracts, foreign exchange options or currency swaps towards hedging risk resulting from changes and fluctuations in foreign currency exchange rate. These foreign exchange contracts, carried at fair value, may have varying maturities varying depending upon the primary host contract requirements and risk management strategy of the company. Hedge effectiveness is assessed on a regular basis. Details of the hedge & unhedged position of the Company given in Note 28.

Foreign currency sensitivity

The foreign exchange rate sensitivity is calculated by the aggregation of the net foreign exchange rate exposure in USD and EURO with a simultaneous parallel foreign exchange rates shift in the currencies by 2% against the functional currency of the respective entities. The company''s exposure to foreign currency changes for all other currencies is not material.

The movement in the pre-tax effect is a result of a change in the fair value of financial instruments not designated in a hedge relationship. Although the financial instruments have not been designated in a hedge relationship, they act as an economic hedge and will offset the underlying transactions when they occur.

(b) Credit risk

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of risks. Financial instruments that are subject to concentrations of credit risk materially consists of trade receivables, investments and derivative financial instruments.

The Company is exposed to credit risk from its operating activities (primarily trade receivables and also from its investing activities including deposits with banks, forex transactions and other financial instruments) for receivables, cash and cash equivalents, financial guarantees and derivative financial instruments.

All trade receivables are subject to credit risk exposure. The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry and country, in which the customer operates, also has an influence on credit risk assessment. Credit risk is managed through established policies, controls relating to credit approvals and procedures for continuously monitoring the creditworthiness of customers to which the Company grants credit terms

in the normal course of business. Outstanding customer receivables are regularly monitored and any shipments to major customers are generally covered by letters of credit. The history of trade receivables shows a negligible provision for bad and doubtful debts. Therefore, the Company does not expect any material risk on account of non-performance by any of the Company''s counterparties. The Company does not have significant concentration of credit risk related to trade receivables. However, 3 customers contribute to more than 10% of outstanding accounts receivable as of March 31,2022 (2 customers contribute to more than 10% of outstanding accounts receivable as of March 31,2021).

Trade receivables are non-interest bearing and are generally on 30 days to 180 days credit term.

With respect to derivatives, the Company''s forex management policy lays down guidelines with respect to exposure per counter party i.e. with banks with high credit rating, processes in terms of control and continuous monitoring. The fair value of the derivatives are credit adjusted at the period end.

(c) Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time, or at a reasonable price. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company generates cash flows from operations to meet its financial obligations, maintains adequate liquid assets in the form of cash & cash equivalents and has undrawn short term line of credits from banks to ensure necessary liquidity. The Company closely monitors its liquidity position and deploys a robust cash management system.

The Company requires funds both for short-term operational needs as well as for long-term investment programmes mainly in growth projects

Note 39 : Capital management

For the purpose of the Company''s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company''s capital management is to ensure that it maintains an efficient capital structure and healthy capital ratios in order to support its business and maximise shareholder value.

The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions or its business requirements to optimise return to our shareholders through continuing growth. 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 funding requirements are met through a mixture of equity, internal fund generation and other non-current borrowings. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings less cash and short-term deposits (including other bank balance). The Company is not subject to any externally imposed capital requirements.

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 breaches in the financial covenants of any long term borrowing in the current period.

No changes were made in the objectives, policies or processes for managing capital during the current period.

Note 40 : Impact of Covid-19

The Company has taken into account all the possible impacts of COVID-19 in preparation of these financial statements, including but not limited to its assessment of, liquidity and going concern assumption, recoverable values of its financial and non-financial assets, impact on revenue recognition owing to changes in cost budgets of fixed price contracts, impact on leases and impact on effectiveness of its hedges. The Company has carried out this assessment based on available internal and external sources of information upto the date of approval of these financial statements and believes that the impact of COVID-19 is not material to these financial statements and expects to recover the carrying amount of its assets. The impact of COVID-19 on the financial statements may differ from that estimated as at the date of approval of these financial statements owing to the nature and duration of COVID-19.

Note 41 : Business Combination

During the year ended March 31, 2021 expenses of '' 191.93 Lakhs in conneciton with the Composite Scheme of Arrangement (the Scheme) sanctioned by National Company Law Tribunal vide its order dated October 26, 2018 between Arvind Limited ("AL"), Arvind Fashions Limited ("AFL"), Anveshan Heavy Engineering Limited ("the Company") and The Anup Engineering Limited ("Anup"), has been adjusted against Securities Premium as mentioned in the Scheme.

Note 42 : Code on Social Security, 2020

The Parliament of India has approved the Code on Social Security, 2020 (the Code) which may impact the contributions by the Company towards provident fund, gratuity and ESIC. The Code has been published in the Gazette of India. However, the effective date has not yet been notified. The Company will assess the impact of the Code when it comes into effect and will record related impact, if any, in the period the Code becomes effective.

Note 43 : Recent Pronouncements

"Ministry of Corporate Affairs (“MCA”) notifies new standard or amendments to the existing standards under Companies (Indian" "Accounting Standards) Rules as issued from time to time. On March 23, 2022, MCA amended the Companies (Indian Accounting" Standards) Amendment Rules, 2022, applicable from April 1, 2022, as below:

Ind AS 103 - Reference to Conceptual Framework

The amendments specify that to qualify for recognition as part of applying the acquisition method, the identifiable assets acquired and liabilities assumed must meet the definitions of assets and liabilities in the Conceptual Framework for Financial Reporting under Indian Accounting Standards (Conceptual Framework) issued by the Institute of Chartered Accountants of India at the acquisition date. These changes do not significantly change the requirements of Ind AS 103. The Company does not expect the amendment to have any significant impact in its financial statements.

Ind AS 16 - Proceeds before intended use

The amendments mainly prohibit an entity from deducting from the cost of property, plant and equipment amounts received from selling items produced while the company is preparing the asset for its intended use. Instead, an entity will recognise such sales proceeds and related cost in profit or loss. The Company does not expect the amendments to have any impact in its recognition of its property, plant and equipment in its financial statements.

Ind AS 37 - Onerous Contracts - Costs of Fulfilling a Contract

The amendments specify that that the ''cost of fulfilling'' a contract comprises the ''costs that relate directly to the contract''. Costs that relate directly to a contract can either be incremental costs of fulfilling that contract (examples would be direct labour, materials) or an allocation of other costs that relate directly to fulfilling contracts. The amendment is essentially a clarification and the Company does not expect the amendment to have any significant impact in its financial statements.

Ind AS 109 - Annual Improvements to Ind AS (2021)

The amendment clarifies which fees an entity includes when it applies the ''10 percent'' test of Ind AS 109 in assessing whether to derecognise a financial liability. The Company does not expect the amendment to have any significant impact in its financial statements.

Ind AS 116 - Annual Improvements to Ind AS (2021)

The amendments remove the illustration of the reimbursement of leasehold improvements by the lessor in order to resolve any potential confusion regarding the treatment of lease incentives that might arise because of how lease incentives were described in that illustration. The Company does not expect the amendment to have any significant impact in its financial statements.

Note 44 : Other Notes

a. During the year ended March 31, 2022 and March 31, 2021, the Company has not advanced or loaned or invested funds (either borrowed funds or share premium or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall:

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

ii) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries. Further, during the year ended March 31, 2022 and March 31, 2021, 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.

b. The Company has not invested or traded in Crypto Currency or Virtual Currency during the year ended March 31, 2022 (Previous year: Nil).

c. No proceedings have been initiated on or are pending against the Company for holding benami property under the Prohibition of Benami Property Transactions Act, 1988 (as amended in 2016) (formerly the Benami Transactions (Prohibition) Act, 1988 (45 of 1988)) and Rules made thereunder during the year ended March 31, 2022 (Previous year: Nil).

d. The Company has not been declared Wilful Defaulter by any bank or financial institution or government or any government authority during the year ended March 31, 2022 (Previous year: Nil).

e. The Company has not surrendered or disclosed as income any transactions not recorded in the books of accounts in the course of tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961) during the year ended March 31, 2022 (Previous year: Nil).

f. The Company does not have any transactions with the companies struck off under section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956 during the year ended March 31, 2022 (Previous year: Nil).

Note 46 : Events occuring after the reporting period

The Company evaluates events and transactions that occur subsequent to the balance sheet date but prior to the approval of financial statements to determine the necessity for recognition and/or reporting of subsequent events and transactions in the financial statements. As of May 18, 2022, there were no subsequent events and transactions to be recognized or reported that are not already disclosed

Note 47 : Dividend

"Dividends paid during the year ended March 31, 2022 include an amount of '' 7.00 per equity share towards final dividend for the year ended March 31, 2021." Dividends declared by the Company are based on profits available for distribution. On May 17, 2022, the Board of Directors of the Company have proposed a final dividend of '' 8.00 per share in respect of the year ended March 31, 2022 subject to the approval of shareholders at the Annual General Meeting.

Note 48 : Regrouped, Recast, Reclassified

Material regroupings: Appropriate adjustments have been made in the statements of assets and liabilities, statement of profit and loss and cash flows, wherever required, by a reclassification of the corresponding items of income, expenses, assets, liabilities and cash flows in order to bring them in line with the groupings as per the audited financials of the Company as at March 31, 2022, prepared in accordance with amended Schedule III of Companies Act 2013.

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Mar 31, 2021

The above term loans from banks carried an interest rate of 7.98% p.a. to 9.75% p.a. and were repayable in monthly/quarterly instalments. These loans were secured by first charge on building, leasehold land and plant and machinery bought with the respective loans and second charge on other property, plant and equipments and current assets, ranking pari passu with other banks. During the year ended 31 March 2021, the Company has paid all the outstanding term-loans and pre-closed the term loan facilities.

	31 March 2021	31 March 2020
(B) Current borrowings
(i) Cash credit from banks (secured)	0.42	59.72
(ii) Short term loan from bank (secured)	-	8.12
	0.42	67.84

Note: Current borrowings are measured at amortised cost.

(i) The overall sanctioned limit of the cash credit from banks is '' 1,380 million and carries interest ranging from 8.10 % p.a. to 9.30 % p.a. and are repayable on demand and is secured by first charge on hypothecation of inventory and trade receivables and other current assets and second charge on movable property, plant and equipment.

(ii) The short term loan from bank carries interest at the rate of 8.60 % p.a. for a period of 60 days and is secured by first charge on hypothecation of inventory and trade receivables and other current assets and second charge on movable property, plant and equipment.

31 In accordance with the provisions of Companies Act, 2013, the Company is required to contribute '' 105.35 million (31 March 2020: '' 100.74 million) towards CSR expenditure for the year ended 31 March 2021 against which actual revenue expenditure is '' 62.58 million (31 March 2020: '' 63.53 million).

As per the Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021, notified by the Ministry of Corporate Affairs on January 2021, the Company has transferred the unspent amount of '' 42.77 million for current financial year to a separate bank account subsequent to the year end, which would be utilized for CSR activities as per the aforesaid rules.

32 Employee benefit plan

The Company has a defined benefit gratuity plan for its employees. The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the Payment of Gratuity Act, 1972, employee who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the member''s length of service and salary at retirement age. The contributions are managed through a third party which acts as the administrator of the fund.

The following tables summarize 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.

33 Leases

The Company has lease contracts for its factories and offices used in its operations. Theses leases generally have lease terms between 11 months and 9 years. The Company''s obligations under its leases are secured by the lessor''s title to the leased assets. Generally, the Company is restricted from assigning and subleasing the leased assets. There are several lease contracts that include extension and termination options at mutual consent.

Further, the Company has also sub-leased few of the Exclusive Brand Outlets across India and accordingly, recognised a net investments in leases for such sub-leased premises. The Company also has certain leases of office equipment with low value. The Company applies the ''short-term lease'' and ''lease of low-value assets'' recognition exemptions for its leases.

(ii) The Hon''ble High Court of Karnataka, based on a preliminary hearing of writ petition filed by the Karnataka Employers'' Association, of which, the Company is a Member, on 2 February 2016, has stayed the retrospective applicability of The Payment of Bonus (Amendment) Act, 2015 from 1 April 2014. The Hon''ble High Court has further ordered that the amended provision shall be implemented effective from FY 2015-16 pending disposal of the writ petition. Consequent to the above, the Company has not recorded the differential liability of bonus payable for the year ended 31 March 2015.

(iii) The Company has certain disputes pertaining to customers, vendors and employee related matters which the management is contesting before various forums. The management based on the advice from its consultants is confident of a favourable outcome and does not expect any material financial implications in this regard.

Future cash outflows in respect of the above matters are determinable only on receipt of judgments/ decisions pending at various forums/authorities.

36 Segment information

The Company has one business unit based on its products and has one reportable segment. The Company''s Board of Directors is the Chief Operating Decision Maker (CODM). The Board monitors the operating results of its single business unit for the purpose of making decisions about resource allocation and performance assessment. The following tables present revenue and non-current operating assets details of the Company for the year ended 31 March 2021 and 31 March 2020.

37 Financial assets measured at fair value through profit/loss:

The fair values of the Company''s security deposits and loans are determined by using Discounted Cash Flow (DCF) method (Level 3) using discount rate that reflects the issuer''s borrowing rate for the respective financial asset/liability as at the end of the reporting period.

The carrying value of trade receivables, trade payables, cash and cash equivalents, loans, short-term borrowings and other current financial assets and liabilities approximate their fair values largely due to the short-term maturities of these instruments.

There are no transfer between levels during the year.

38 Financial risk management objectives and policies

The Company''s activities expose it to the following risks:

a) Credit risk

b) Liquidity risk

c) Market risk

a) Credit risk

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

i) Trade receivables

Customer credit risk is managed by the Company subject to the Company''s established policy, procedures and control relating to customer credit risk management. Outstanding customer receivables are regularly monitored and major customers are generally secured by obtaining security deposits/bank guarantee or other forms of credit insurance. Refer below for movement of impairment allowance.

ii) Financial instrument and deposits with banks

Credit risk is limited as the Company generally invest in deposits with banks and financial institutions with high credit ratings assigned by international and domestic credit rating agencies. Investments primarily include investments in liquid mutual fund units. Counterparty credit limits are reviewed by the Company periodically and the limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterparty''s potential failure to make payments.

b) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation. Typically the Company ensures that it has sufficient cash on demand to meet expected short term operational expenses. The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of internal accruals and borrowings as required.

c) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk: interest rate risk and foreign currency risk. Financial instruments affected by market risk includes borrowings, trade receivables and trade payables.

Interest rate risk is the risk that the fair value or future cash flows of the Company''s financial instruments will fluctuate because of changes in market interest rates. As the Company does not have significant debt obligations, it is not exposed to any significant interest rate 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 does not have significant foreign currency exposure and hence, is not exposed to any significant foreign currency risk.

39 Capital management

The Company''s objective is to maintain a strong capital base to ensure sustained growth in business. The Company''s management focusses to maintain an optimal structure that balances growth and maximizes shareholder value. The Company is predominantly equity financed. Further, the Company has sufficient cash, cash equivalents and financial assets which are liquid to meet its financial obligations.

40 The Code on Social Security, 2020 (''Code'') relating to employee benefits during employment and postemployment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified and the final rules/ interpretation have not yet been issued. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective.

41 The Company has assessed and considered the impact of the ongoing Covid-19 pandemic on carrying amounts of receivables, other assets and its business operations including all relevant internal and external information available up to the date of approval of these financial results. Basis such evaluation, the management does not expect any adverse impact on its future cash flows and shall be able to continue as a going concern and meet its obligations as and when they fall due. The impact of Covid-19 on the Company''s financial results may differ from that estimated as at the date of approval of these financial results. The Company will continue to monitor future economic conditions for any significant change.

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Mar 31, 2019

1. Corporate information

The Company was incorporated in the year 1995 with the key objective of bringing the innerwear brand “JOCKEY” to India. The core values of the brand include youthfulness, fun, quality, value, confidence and innovation. The Company has introduced a wide range of quality products for men, women and children as well as innovative marketing concepts such as display modules aimed at enhancing the consumer’s involvement with the purchase.

The Company commenced operations in the year 1995 in Bengaluru with the manufacturing, distribution and marketing of Jockey products. The Company has added to its profile by entering into license with “SPEEDO”, globally known International brand for swim wear.

The Company is a public company domiciled in India and is incorporated under the provisions of the Companies Act applicable in India. The registered office of the Company is located at Cessna Business Park, 7^th Floor, Umiya Business Bay, Tower-1, Varthur Hobli, Outer Ring Road, Bengaluru - 560 103. Its shares are listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).

The financial statements are approved for issue by the Company’s Board of Directors on 24 May 2019.

During the year ended 31 March 2019, Rs. (29.43) million (31 March 2018 : Rs. 204.75 million) was recognised as a provision / (reversal of provision) for certain old inventories.

i) Loans are measured at amortised cost

ii) The above loan to related party carries interest at the rate of 9% and is repayable on demand.

iii) Loans as per SEBI (Listing Obligation and Disclosure Requirement) regulation 2015:

i) Trade receivable due from a Company in which key managerial personnel or their relatives have significant influence is as follows:

ii) Trade receivables are measured at amortised cost. No trade receivables are due from directors or other officers of the Company either severally or jointly with any other person.

iii) Trade receivable are generally on terms of 7 to 45 days.

* Full amount ‘3201.

** The above trade receivables are secured against deposits from dealers and bank guarantees.

Terms / rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs. 10 per share. Each shareholder is entitled to one vote per share.

In the event of liquidation, the equity shareholders are eligible to receive the residual assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

The Company does not have any holding company or subsidiary company.

2. Other equity

a) General reserve

Under the erstwhile Companies Act 1956, general reserve was created through an annual transfer of net income at a specified percentage in accordance with applicable regulations. Such amount can be utilised in accordance with the specific requirements of Companies Act, 2013.

b) Securities premium

Securities premium is used to record the premium on issue of shares. The reserve can be utilised only for certain purposes in accordance with the provisions of the Companies Act, 2013.

The above loans from banks are secured by first charge on building, leasehold land and plant and machinery bought with the respective loans and second charge on other fixed assets and current assets, ranking pari passu with other banks.

(i) The cash credit from bank carries interest ranging from 9.30 % p.a. to 10.50 % p.a. and are repayable on demand and is secured by first charge on hypothecation of inventory and trade receivables and other current assets and second charge on movable property, plant and equipment.

(ii) The short term loan from bank carries interest at the rate of 8.60 % p.a. for a period of 60 days and is secured by first charge on hypothecation of inventory and trade receivables and other current assets and second charge on movable property, plant and equipment.

i) Trade payables are measured at amortised cost.

ii) Trade payables are non-interest bearing and are normally settled on 15 to 45 days terms.

* Details of dues to micro and small enterprises as defined under the MSMED Act, 2006

The Company has amounts due to Micro and Small Enterprises under The Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) as at 31 March 2019 and 31 March 2018. The details in respect of such dues are as follows:

i) Other financial liabilities are measured at amortised cost.

ii) Borrowings from banks and deposits from dealers are interest bearing.

Sale of products includes excise duty collected from customers of Rs. 6.59 million upto 30 June 2017. Sale of products net of excise duty is Rs. 25,180 million for the year ended 31 March 2018.

3. In accordance with the provisions of Companies Act, 2013, the Company is required to contribute Rs. 83.60 million (31 March 2018: Rs. 65.34 million) towards CSR expenditure for the year ended 31 March 2018 against which actual revenue expenditure is Rs. 52.73 million (31 March 2018: Rs. 32.23 million).

4. Employee benefit plan

The Company has a defined benefit gratuity plan for its employees. The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the act, employee who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the member’s length of service and salary at retirement age. The contributions are managed through a third party which acts as the administrator of the fund.

The sensitivity analyses above have been determined based on a method that extrapolates the impact on defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period.

The average duration of the defined benefit plan obligation at the end of the reporting period is 6 years (31 March 2018: 7 years).

5. Commitments and contingencies

a. Leases

Operating lease commitments - Company as lessee

The Company has entered into operating leases on buildings for office, factory and other premises with lease term between 11 and 132 months and which are renewable on a periodic basis at the option of the Company or lessor.

The Company has recorded Rs. 361.56 million (31 March 2018: Rs. 371.99 million) during the year towards lease expenses.

b. Other Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for as at 31 March 2019 is Rs. 36.13 million (31 March 2018: Rs. 66.86 million).

Note: The Company had received a demand order of Rs 117.25 million from the income tax authorities for AY 2010-11 on account of disallowance of certain expenditure which was dismissed by the Income Tax Appellate Tribunal (ITAT) in favour of the Company during FY 2016-17. The income tax department has filed an appeal against the aforesaid ITAT order and the matter is now pending in the High Court of Karnataka.

(ii) The Hon’ble High Court of Karnataka, based on a preliminary hearing of writ petition filed by the Karnataka Employers’ Association, of which, the Company is a Member, on 2 February 2016, has stayed the retrospective applicability of The Payment of Bonus (Amendment) Act, 2015 from 1 April 2014. The Hon’ble High Court has further ordered that the amended provision shall be implemented effective from FY 2015-16 pending disposal of the writ petition. Consequent to the above, the Company has not recorded the differential liability of bonus payable for the year ended 31 March 2015 aggregating to Rs. 118.18 million in its books.

(iii) The Supreme Court of India in a judgment on Provident Fund (PF) dated 28 February 2019 addressed the principle for determining salary components that form part of Basic Salary for individuals below a prescribed salary threshold. There are numerous interpretative issues relating to the Supreme Court (SC) judgement on PF dated 28 February 2019. As a matter of caution, the Company has evaluated the impact of such order on a prospective basis from the date of the SC order and concluded that the same has no material impact on the Company. The Company will update its provision, on receiving further clarity on the subject.

Future cash outflows in respect of the above matters are determinable only on receipt of judgments/ decisions pending at various forums/authorities.

Terms and conditions of transactions with related parties

The transactions with related parties are at arm’s length. Outstanding balances at the year-end are unsecured and settlement occurs in cash. The Company has not recorded any impairment relating to amounts owed by related parties.

6. Segment information

The Company has one business unit based on its products and has one reportable segment. The management monitors the operating results of its single business unit for the purpose of making decisions about resource allocation and performance assessment. The following tables present revenue and non-current operating assets details of the Company for the year ended 31 March 2019 and 31 March 2018.

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

All non-current operating assets (property, plant & equipment, etc.) are located in India.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The fair values of the investments in mutual funds are derived from quoted market prices in active markets. Accordingly, these are classified as level 1 of fair value hierarchy.

b) The fair values of the Company’s security deposits and loans are determined by using Discounted Cash Flow (DCF) method (Level 3) using discount rate that reflects the issuer’s borrowing rate for the respective financial asset/liability as at the end of the reporting period.

The carrying value of trade receivables, trade payables, cash and cash equivalents, loans, shortterm borrowings and other current financial assets and liabilities approximate their fair values largely due to the short-term maturities of these instruments.

There are no transfer between levels during the year.

7. Financial risk management objectives and policies

The Company’s activities expose it to the following risks:

a) Credit risk

b) Liquidity risk

c) Market risk

a) Credit risk

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

i) Trade receivables

Customer credit risk is managed by the Company subject to the Company’s established policy, procedures and control relating to customer credit risk management. Outstanding customer receivables are regularly monitored and major customers are generally secured by obtaining security deposits/bank guarantee or other forms of credit insurance.

ii) Financial instrument and cash deposit

Credit risk is limited as the Company generally invest in deposits with banks and financial institutions with high credit ratings assigned by international and domestic credit rating agencies. Investments primarily include investments in liquid mutual fund units. Counterparty credit limits are reviewed by the Company periodically and the limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterparty’s potential failure to make payments.

b) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation. Typically the Company ensures that it has sufficient cash on demand to meet expected short term operational expenses. The Company’s objective is to maintain a balance between continuity of funding and flexibility through the use of bank loans/internal accruals.

c) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk: interest rate risk and foreign currency risk. Financial instruments affected by market risk include borrowings, trade receivable and trade payable.

Interest rate risk is the risk that the fair value or future cash flows of the Company’s financial instruments will fluctuate because of changes in market interest rates. The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings. As the Company does not have significant debt obligations with floating interest rates, it is not exposed to any significant interest rate 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 does not have significant foreign currency exposure and hence, is not exposed to any significant foreign currency risk.

8. Capital management

The Company’s objective is to maintain a strong capital base to ensure sustained growth in business. The Capital Management focusses to maintain an optimal structure that balances growth and maximizes shareholder value.

The Company is predominantly equity financed. Further, the Company has sufficient cash, cash equivalents and financial assets which are liquid to meet the debts.

9. The dividends declared during the year are approved by the Board of Directors. Further, subsequent to the year-end, the Board of Directors, at their meeting held on 24 May 2019, have declared 4th interim dividend of Rs. 41 per share.

10. Previous year figures have been regrouped / reclassified, wherever necessary to confirm to the current year’s classification.

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Mar 31, 2018

The Company does not have any holding company or subsidiary company.

1. In accordance with the provisions of Companies Act, 2013, the Company is required to contribute Rs, 65.34 million (31 March 2017: Rs, 57.98 million) towards CSR expenditure for the year ended 31 March 2018 against which actual revenue expenditure is Rs, 32.22 million (31 March 2017: Rs, 20.25 million).

2. earnings per share (EPS)

The following reflects the income and share data used in the basic and diluted EPS computations:

There have been no transactions involving equity shares or potential equity shares between the reporting date and the date of authorisation of these financial statements.

3. Significant accounting judgements, estimates and assumptions

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

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 in currencies consistent with the currencies of the post-employment benefit obligation.

The mortality rate is based on publicly available mortality tables. 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 rate and past trends. Further details about gratuity obligations are given in Note 34.

Provision for litigations and contingencies: The provision for litigations and contingencies are determined based on evaluation made by the management of the present obligation arising from past events the settlement of which is expected to result in outflow of resources embodying economic benefits, which involves judgments’ around estimating the ultimate outcome of such past events and measurement of the obligation amount. Due to the judgments involved in such estimations the provisions are sensitive to the actual outcome in future periods.

4. Employee benefits

The Company has a defined benefit gratuity plan for its employees. The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the act, employee who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the member’s length of service and salary at retirement age. The contributions are managed through a third party which acts as the administrator of the fund.

The following tables summarize 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.

The sensitivity analyses above have been determined based on a method that extrapolates the impact on defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period.

The following payments are expected contributions to the defined benefit plan in future years:

The average duration of the defined benefit plan obligation at the end of the reporting period is 7 years (31 March 2017: 19 years).

5. commitments and contingencies

a. Leases

Operating lease commitments - company as lessee

The Company has entered into operating leases on buildings for office, factory and other premises with lease term between 11 and 144 months and which are renewable on a periodic basis at the option of the Company or less or. All leases include a clause to enable upward revision of the rental charge on an annual basis according to prevailing market conditions.

The Company has paid Rs, 371.99 million (31 March 2017: Rs, 346.62 million) during the year towards minimum lease payments.

b. Other commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for as at 31 March 2018 is Rs, 66.86 million (31 March 2017: Rs, 456.06 million).

* The Hon’ble High Court of Karnataka, based on a preliminary hearing of writ petition filed by the Karnataka Employers’ Association, of which, the Company is a Member, on 2 February 2016, has stayed the retrospective applicability of The Payment of Bonus (Amendment) Act, 2015 from 1 April 2014. The Hon’ble High Court has further ordered that the amended provision shall be implemented effective from FY 2015-16 pending disposal of the writ petition. Consequent to the above, the Company has not recorded the differential liability of bonus payable for the year year ended 31 March 15 aggregating to Rs, 118.18 millions in its books.

The Company has assessed that it is only possible, but not probable, that outflow of economic resources will be required.

Future cash outflows in respect of the above matters are determinable only on receipt of judgments/ decisions pending at various forums/authorities.

6. Related party transactions

Names of related parties and related party relationship

Enterprises in which key managerial personnel Page Garment Exports Private Limited

(KMP) or their relatives have significant influence

Key management personnel Sunder Genomal - Managing Director

Shamir Genomal - Executive Director

Vedji Ticku - Executive Director & CEO

Pius Thomas-Executive Director

(Till 7^th April 2017)

Chandrasekar K - Chief Financial Officer (w.e.f 8^th February 2018)

V. S Ganesh - Executive Director (w.e.f 25^th May 2017)

Pradeep Jaipuria - Director Timothy Ralph Wheeler - Director G.P. Albal - Director P.V. Menon - Director

V Sivadas - Director B.C. Prabhakar - Director Rukmani Menon - Director Vikram Gamanlal Shah - Director Sandeep Kumar Maini - Director C Murugesh - Company Secretary

Relative of key management personnel Ramesh Genomal

Nari Genomal Rohan Genomal Madhuri Genomal

There are no transfer between levels during the year.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The fair values of the investments in mutual funds are derived from quoted market prices in active markets. Accordingly, these are classified as level 1 of fair value hierarchy.

b) The carrying value of trade receivables, trade payables, cash and cash equivalents, loans, borrowings and other current financial assets and liabilities approximate their fair values largely due to the short-term maturities.

7. Financial risk management objectives and policies

The Company’s activities expose it to the following risks:

a) Credit risk

b) Liquidity risk

c) Market risk

a) credit risk

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

i) Trade receivables

Customer credit risk is managed by the Company subject to the Company’s established policy, procedures and control relating to customer credit risk management. Outstanding customer receivables are regularly monitored and major customers are generally secured by obtaining security deposits/bank guarantee or other forms of credit insurance. The maximum exposure to credit risk at the reporting date is the carrying value of trade receivable disclosed in note 9.

ii) Financial instrument and cash deposit

Credit risk is limited as the Company generally invest in deposits with banks and financial institutions with high credit ratings assigned by international and domestic credit rating agencies. Investments primarily include investments in liquid mutual fund units. Counterparty credit limits are reviewed by the Company periodically and the limits are set to minimize the concentration of risks and therefore mitigate financial loss through counterparty’s potential failure to make payments.

b) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation. Typically the Company ensures that it has sufficient cash on demand to meet expected short term operational expenses. The Company’s objective is to maintain a balance between continuity of funding and flexibility through the use of bank loans/internal accruals.

c) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk: interest rate risk and foreign currency risk. Financial instruments affected by market risk include borrowings, trade receivable and trade payable.

Interest rate risk is the risk that the fair value or future cash flows of the Company’s financial instruments will fluctuate because of changes in market interest rates. The Company does not have significant debt obligations with floating interest rates, hence, is not exposed to any significant interest rate 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 does not have significant foreign currency exposure and hence, is not exposed to any significant foreign currency risk.

8. capital management

The Company’s objective is to maintain a strong capital base to ensure sustained growth in business. The Capital Management focusses to maintain an optimal structure that balances growth and maximizes shareholder value.

The Company is predominantly equity financed. Further, the Company has sufficient cash, cash equivalents, current investments and financial assets which are liquid to meet the debts.

9. Standards issued but not yet effective:

The amendments to standard issued up to the date of issuance of the Company’s financial statements, but not yet effective as of the date of the Company’s financial statements and applicable to the Company are disclosed below.

Ind AS 115 Revenue from Contracts with Customers

Ind AS 115 establishes a five-step model to account for revenue arising from contracts with customers. Under Ind AS 115, revenue is recognized when (or as) the entity satisfies a performance obligation by transferring a promised good or service (i.e., an asset) to a customer (i.e., when (or as) the customer obtains control of that asset) at an amount that reflects the consideration to which the 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. Either a full retrospective application or a modified retrospective application is required for accounting periods commencing on or after April 1, 2018.”

“Appendix B to Ind AS 21 foreign currency transactions and Advance consideration:

The Appendix clarifies that, in determining the spot exchange rate to use on initial recognition of the related asset, expense or income (or part of it) on the derecognition of a non-monetary asset or non-monetary liability relating to advance consideration, the date of the transaction is the date on which an entity initially recognizes the non-monetary asset or non-monetary liability arising from the advance consideration. If there are multiple payments or receipts in advance, then the entity must determine the transaction date for each payment or receipt of advance consideration. Entities may apply the Appendix requirements on a fully retrospective basis. Alternatively, an entity may apply these requirements prospectively to all assets, expenses and income in its scope. These amendments are effective for annual periods beginning on or after April 01, 2018.”

The Company will adopt the aforesaid amendments effective from April 1, 2018. As at the date of issuance of the Company’s financial statements, the Company is in the process of evaluating the requirements of the aforesaid amendments and the impact on its financial statements in the period of initial application.

10. Previous year figures have been regrouped/ reclassified, wherever necessary to conform to current year’s classification.

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Mar 31, 2017

1. In accordance with the provisions of Companies Act, 2013, the Company is required to contribute '' 57.98 million (31 March 2016: '' 46.07 million) towards CSR expenditure for the year ended 31 March 2017 against which actual revenue expenditure is '' 20.25 million (31 March 2016: '' 8.00 million).

2. Earnings per share (EPS)

The following reflects the income and share data used in the basic and diluted EPS computations:

* There have been no transactions involving equity shares or potential equity shares between the reporting date and the date of authorization of these financial statements.

3. Significant accounting judgments, estimates and assumptions

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

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 in currencies consistent with the currencies of the post-employment benefit obligation.

The mortality rate is based on publicly available mortality tables. 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 rate and past trends. Further details about gratuity obligations are given in Note 35.

Provision for litigations and contingencies: The provision for litigations and contingencies are determined based on evaluation made by the management of the present obligation arising from past events the settlement of which is expected to result in outflow of resources embodying economic benefits, which involves judgments around estimating the ultimate outcome of such past events and measurement of the obligation amount. Due to the judgments involved in such estimations the provisions are sensitive to the actual outcome in future periods.

4. Employee benefits

The Company has a defined benefit gratuity plan for its employees. The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the act, employee who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the member’s length of service and salary at retirement age. The contributions are managed through a third party which acts as the administrator of the fund.

The following tables summarize 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.

5. Commitments and contingencies

a. Leases

Operating lease commitments - Company as lessee

The Company has entered into operating leases on buildings for office, factory and other premises with lease term between 11 and 144 months and which are renewable on a periodic basis at the option of the Company or less or. All leases include a clause to enable upward revision of the rental charge on an annual basis according to prevailing market conditions. There are no restrictions imposed by lease arrangements.

The Company has paid '' 346.62 million (31 March 2016: '' 310.14 million) during the year towards minimum lease payments.

b. Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for as at 31 March 2017 is '' 456.06 million (31 March 2016: '' 186.00 million).

Refer note 36 (a) above for lease commitments.

* The Hon’ble High Court of Karnataka, based on a preliminary hearing of writ petition filed by the Karnataka Employers’ Association, of which, the Company is a Member, on 2 February 2016, has stayed the retrospective applicability of The Payment of Bonus (Amendment) Act, 2015 from 1 April 2014. The Hon’ble High Court has further ordered that the amended provision shall be implemented effective from FY 2015-16 pending disposal of the writ petition. Consequent to the above, the Company has not recorded the differential liability of bonus payable for the year ended 31 March 15 aggregating to '' 118.18 millions in its books.

The Company has assessed that it is only possible, but not probable, that outflow of economic resources will be required.

Future cash outflows in respect of the above matters are determinable only on receipt of judgments/ decisions pending at various forums/authorities.

37. Related party transactions

Names of related parties and related party relationship

Enterprises in which key managerial Page Garment Exports Private Limited

personnel (KMP) or their relatives have significant influence

Key management personnel Sunder Genomal - Managing Director

Ramesh Genomal, Director Nari Genomal, Director

Pius Thomas - Exeuctive Director, Finance (till 7^th April 2017)

Shamir Genomal - Executive Director Vedji Ticku - Chief Executive Officer (w.e.f. 12^th February 2016)

Pradeep Jaipuria - Director Timothy Ralph Wheeler - Director G.P. Albal - Director P.V.Menon - Director V Sivadas - Director B.C.Prabhakar - Director Rukmani Menon - Director Vikram Gamanlal Shah - Director Sandeep Kumar Maini - Director C Murugesh - Company Secretary

Relative of key management personnel Rohan Genomal

Madhuri Genomal

*As the liability for gratuity and leave encashment is provided on an actuarial basis for the Company as a whole, the amount pertaining to the directors are not included above.

d. Other notes

The sales to and purchases from related parties are made on terms equivalent to those that prevail in arm’s length transactions. Outstanding balances at the yearend are unsecured and interest free (except for loans and advances receivable from Page Garment Exports Private Limited) and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables or payables. The Company has not recorded any impairment of receivables relating to amounts owed by related parties. This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

7. Segment information

For management purposes, the Company has one business unit based on its products and has one reportable segment.

The management monitors the operating results of its single business unit for the purpose of making decisions about resource allocation and performance assessment.

The following tables present revenue details of the Company for the year ended 31 March 2017 and 31 March 2016.

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

All Non-current operating assets (fixed asset etc,.) are located in India

There are no transfer between levels during the year.

The carrying value of trade receivables, trade payables, cash and cash equivalents, loans, borrowings and other current financial assets and liabilities approximate their fair values largely due to the short-term maturities.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The fair values of the investments in mutual funds are derived from quoted market prices in active markets.

8. Financial risk management objectives and policies

The Company’s activities expose it to the following risks:

a) Credit risk

b) Liquidity risk

c) Market risk

a) Credit Risk

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

i) Trade receivables

Customer credit risk is managed by the Company subject to the Company’s established policy, procedures and control relating to customer credit risk management. Outstanding customer receivables are regularly monitored and major customers are generally secured by obtaining security deposits/bank guarantee or other forms of credit insurance. The maximum exposure to credit risk at the reporting date is the carrying value of trade receivable disclosed in note 9.

ii) Financial instrument and cash deposit

Credit risk is limited as the Company generally invest in deposits with banks and financial institutions with high credit ratings assigned by international and domestic credit rating agencies. Investments primarily include investments in liquid mutual fund units. Counterparty credit limits are reviewed by the Company periodically and the limits are set to minimize the concentration of risks and therefore mitigate financial loss through counterparty’s potential failure to make payments.

b) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation. Typically the Company ensures that it has sufficient cash on demand to meet expected short term operational expenses. The Company’s objective is to maintain a balance between continuity of funding and flexibility through the use of bank loans/internal accruals.

c) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk: interest rate risk and foreign currency risk. Financial instruments affected by market risk include borrowings, trade receivable and trade payable.

Interest rate risk is the risk that the fair value or future cash flows of the Company’s financial instruments will fluctuate because of changes in market interest rates. The Company does not have significant debt obligations with floating interest rates, hence, is not exposed to any significant interest rate 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 does not have significant foreign currency exposure and hence, is not exposed to any significant foreign currency risk.

9. Capital management

The Company’s objective is to maintain a strong capital base to ensure sustained growth in business. The Capital Management focuses to maintain an optimal structure that balances growth and maximizes shareholder value.

The Company is predominantly equity financed. Further, the Company has sufficient cash, cash equivalents, current investments and financial assets which are liquid to meet the debts.

10. First time adoption

These financial statements, for the year ended 31 March 2017, are the first the Company has prepared in accordance with Ind AS. For periods up to and including the year ended 31 March 2016, the Company prepared its financial statements in accordance with generally accepted accounting principles in India (Previous GAAP).

Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for periods ending on or after 31 March 2017, together with the comparative period data as at and for the year ended 31 March 2016, as described in the summary of significant accounting policies. In preparing these financial statements, the Company’s opening statement of financial position was prepared as at 1 April 2015, the Company’s date of transition to Ind AS. This note explains the principal adjustments made by the Company in restating its Previous GAAP financial statements as at 1 April 2015 and the financial statements as at and for the year ended 31 March 2016.

Estimates:

Ind AS 101 requires an entity’s estimates in accordance with Ind ASs at the date of transition to Ind AS to be consistent with estimates made for the same date in accordance with Previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.

Exemptions applied on first time adoption of Ind AS 101

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 exemptions:

1. Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Assets. Accordingly, the Company has elected to measure all of its property, plant and equipment and intangible assets at their Previous GAAP carrying value.

Footnotes to the reconciliation of equity as at 1 April 2015 and 31 March 2016 and profit and loss for the year ended 31 March 2016

11. Government grant

a) Under Previous GAAP, the government grant received was reduced from the cost of property, plant and equipment. Under Ind AS, the cost of property, plant and equipment has been increased by such government grant received with corresponding increase in government grant.

b) Under Ind AS, when loans or similar assistance are provided by governments or related institutions, with an interest rate below the current applicable market rate, the effect of this favourable interest is regarded as a government grant. The loan or assistance is initially recognized and measured at fair value and the government grant is measured as the difference between the initial carrying value of the loan and the proceeds received.

12. Security deposits paid

Under the Previous GAAP, interest free lease security deposits (that are refundable in cash on completion of the lease term) were recorded at their transaction value. Under Ind AS, all financial assets are required 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.

13. Deferred tax

Previous GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind AS requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of Ind AS approach has resulted in recognition of deferred tax on new temporary differences which was not required under Previous GAAP.

In addition, the various transitional adjustments lead to temporary differences. According to the accounting policies, the Company has to account for such differences. Deferred tax adjustments are recognized in correlation to the underlying transaction either in retained earnings or a separate component of equity.

14. Dividend and tax on dividend

Under previous GAAP, dividend payable was recorded as a liability in the period to which it relates. Under Ind AS, dividend to holders of equity shares is recognized as a liability in the period in which the obligation to pay is established

15. Sale of goods

(a) Under Previous GAAP, sale of goods was presented as net of excise duty. However, under Ind AS, sale of goods includes excise duty. Excise duty on sale of goods is separately presented on the face of statement of profit and loss.

(b) The Company recovers from its customers certain freight and insurance costs paid to the vendor on behalf of the customers. Under Previous GAAP, the actual freight and insurance costs incurred was netted off with the recoveries. Under Ind AS, such costs and amounts recovered from the customers is accounted on gross basis.

(c) The Company evaluated its revenue contracts and consequently, reversed revenue that did not meet the revenue recognition criteria under Ind AS with corresponding increase in inventory and decrease in cost of sales and trade receivable.

(d) The Company purchases certain products manufactured by a related party and also sells raw materials to the related party. Under Previous GAAP, the purchase and sale transactions are accounted for separately. Under Ind AS, same are netted off as the purchase and sale contract is considered as linked contracts.

16. Defined benefit liabilities

Under Previous GAAP, actuarial gains and losses were recognized in the statement of profit and loss. Under Ind AS, the actuarial gains and losses form part of re-measurement of net defined benefit liability/asset which is recognized in other comprehensive income in the respective periods. Further, interest costs on actuarial valuation of gratuity has been reclassified to finance costs under IND AS.

17. Statement of cash flows

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

18. The figures of the previous year as at and for the year ended 31 March 2016 and as at 1 April 2015 have been regrouped/reclassified, wherever necessary.

19. Standards issued but not yet effective:

The standards issued, but not yet effective up to the date of issuance of Company’s financial statements are disclosed below. The Company intends to adopt these standards when it becomes effective.

a. Amendments to Ind AS 7 Disclosure Initiative:

The amendments require an entity to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities. The amendments apply prospectively for annual periods beginning on or after 1 April 2017. The Company does not anticipate that the application of these amendments will have a material impact on the Company’s financial statements.

b. Amendments to Ind AS 102 Classification and Measurement of Share-based Payment Transactions:

The amendments to Ind AS 102 applies prospectively for annual periods beginning on or after 1 April 2017. As per the amendments, in estimating the fair value of a cash-settled share-based payment, the accounting for the effects of vesting and non-vesting conditions should follow the same approach as for equity-settled share-based payments. Further, where tax law or regulation requires an entity to withhold a specified number of equity instruments and the share-based payment arrangement has a ‘net settlement feature’, such an arrangement should be classified as equity-settled in its entirety. The Company does not anticipate that the application of the amendments in the future will have a significant impact on the Company’s financial statements as the Company does not have any cash-settled share-based payment arrangements or any withholding tax arrangements with tax authorities in relation to such share-based payments.

20. The figures of the previous year up to 31 March 2016 were audited by a firm of Chartered Accountants other than S.R. Batliboi & Associates LLP. Previous year’s figures have been regrouped/ reclassified, wherever necessary to conform to current year’s classification.

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Mar 31, 2014

1 Brief about the Company

The Company was set up in the year 1995 with the key objective of bringing the innerwear brand "JOCKEY" to India. The core values of the brand include youthfulness, fun, quality, value, confidence and innovation. The company has introduced a wide range of quality products for men, women and children as well as innovative marketing concepts such as display modules aimed at enhancing the consumer''s involvement with the purchase.

The Company commenced operations in the year 1995 in Bangalore with the manufacturing, distribution and marketing of Jockey products.

The Company has added to its profile by entering in to license with "SPEEDO", A globally known International brand for swim wear. Wide range of new products are launched in India by the company in the year 2012-13.

2 Terms /Rights attached to Equity Shares

Equity Shares: The company has one class of equity shares having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

3 Company does not have any holding company or subsidiary company, Shares held by holding and subsidiary company does not arise.

4 There were no fresh issue of shares during the year or in the immediately preceding 5 year.

5 Litigations

In accordance with Accounting Standard 29 on Provisions, Contingent Liabilities and Contingent Assets as notified by the Companies (Accounting Standard) Rules 2006, the following provisions are made in the books of accounts.

6 Disclosure pursuant to clause 32 of the listing agreements

a) Loans and Advances in the nature of loans to subsidiary : NA (P.Y - NA)

b) Loans and Advances in the nature of loans to Associates : NA (P.Y - NA)

c) Loans and Advances in the nature of loans where there is :

i) No repayment schedule or repayment beyond seven years : NA (P.Y - N.A)

ii ) No Interest of Interest below sec. 372A of the companies Act, 1956: NA (P.Y - NA)

d) Loans and Advances in the nature of Loans to Companies in which directors are interested :

7 Leasing arrangements: Finance Lease:

The company does not have any item covered under finance lease which needs disclosure as per Accounting Standard 19 - "Accounting for Leases".

Operating Lease:

The significant leasing arrangements entered into by the Company include the following:

1) Buildings taken on operating lease with lease term between 11 and 144 months for office premises, Factory premises and residential accommodation for employees and which are renewable on a periodic basis by mutual consent of both parties. There are no restrictions imposed by lease arrangements, such as those concerning dividends, additional debt and further leasing.

3) Lease payments recognized under rent expenses.

The Company has various operating leases for office facilities and residential premises for employees that are renewable on a periodic basis. Rental expenses for operating leases recognized in statement of profit and loss for the year is Rs. 156,569,397/- (P.Y.Rs. 111,092,212/-)

8 Segmental Information

The Company is engaged in the business of "Manufacturing of Garments". As the basic nature of these articles are governed by the same set of risk and returns, these have been re-grouped as a single business segment. Further the company sells primarily in the domestic market where its operations are governed by the same set of risks and returns and the overseas sales are insignificant. Accordingly the separate primary and secondary segment reporting disclosure as envisaged in Accounting Standard (AS - 17) on Segmental Reporting notified by the Companies ( Accounting Standard ) Rules 2006 is not applicable to the company.

9 Disclosure of Foreign Currency Exposure

The above disclosures have been made consequent to an announcement by the Institute of Chartered Accountants of India in December, 2005, which is applicable to the financial periods ending on or after 31st March, 2006.

10 Disclosure in respect of Related Parties pursuant to Accounting Standard 18 :

(i) List of Related Parties:

a) Enterprises in which KMPs or their relatives having significant influence. Page Garments Exports Private Limited

b) Key management personnel Sunder Genomal

Pius Thomas

c) Relative of Key management personnel Shamir Genomal

ii) During the year following transactions were carried out with the related parties in the ordinary course of business:-

Note: i) The above transactions do not include reimbursement of expenses, which are accounted in the respective heads of accounts.

11 Previous year''s figures have been regrouped / reclassified wherever necessary to make them comparable with the current year''s classification.

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Mar 31, 2013

1 Brief about the Company

The Company was set up in the year 1995 with the key objective of bringing the innerwear brand "JOCKEY" to India. The core values of the brand include youthfulness, fun, quality, value, confidence and innovation. The company has introduced a wide range of quality products for men, women and children as well as innovative marketing concepts such as display modules aimed at enhancing the consumer''s involvement with the purchase.

The company commenced operations in the year 1995 in Bangalore with the manufacturing, distribution and marketing of Jockey products.

The company has added to its profile by entering in to license with "SPEEDO", A globally known International brand for swim wear. Wide range of new products are launched in India by the company in the year 2012-13.

2A Disclosure pursuant to clause 32 of the listing agreements

a) Loans and Advances in the nature of loans to subsidiary : NA (P.Y - NA)

b) Loans and Advances in the nature of loans to Associates : NA (P.Y - NA)

c) Loans and Advances in the nature of loans where there is :

i) No repayment schedule or repayment beyond seven years : NA (P.Y - N.A)

ii ) No Interest of Interest below sec. 372A of the companies Act, 1956: NA (P.Y - NA)

d) Loans and Advances in the nature of Loans to Companies in which directors are interested :

2B Defined Benefit Plan:

As per actuarial valuation as on 31st March, 2013 and recognized in the financial statements in respect of Employee Benefit Schemes :

2C Compensated absence

The defined benefit obligation of compensated absence in respect of the employees of the companies as at 31st march, 2013 is Rs. 33,788,534/- ( Previous year Rs.24,953,694/-)

3 Leasing arrangements:

Finance Lease:

The company does not have any item covered under finance lease which needs disclosure as per Accounting Standard 19 - "Accounting for Leases".

Operating Lease:

The significant leasing arrangements entered into by the Company include the following:

1) Buildings taken on operating lease with lease term between 11 and 144 months for office premises, Factory premises and residential accommodation for employees and which are renewable on a periodic basis by mutual consent of both parties. There are no restrictions imposed by lease arrangements, such as those concerning dividends, additional debt and further leasing.

2) The total future minimum lease rentals payable at the Balance Sheet date is as under

3) Lease payments recognized under rent expenses.

The Company has various operating leases for office facilities and residential premises for employees that are renewable on a periodic basis. Rental expenses for operating leases recognized in statement of profit and loss for the year is Rs. 111,092,212/- (P.Y.Rs. 73,528,796/-)

4 Segmental Information

The Company is engaged in the business of "Manufacturing of Garments". As the basic nature of these articles are governed by the same set of risk and returns, these have been re-grouped as a single business segment. Further the company sells primarily in the domestic market where its operations are governed by the same set of risks and returns and the overseas sales are insignificant. Accordingly the separate primary and secondary segment reporting disclosure as envisaged in Accounting Standard (AS - 17) on Segmental Reporting notified by the Companies ( Accounting Standard ) Rules 2006 is not applicable to the company.

5 Disclosure in respect of Related Parties pursuant to Accounting Standard 18 :

(i) List of Related Parties:

a) Enterprises in which KMPs or their relatives having significant influence.

Page Garments Exports Private Limited

b) Key management personnel

Sunder Genomal

Pius Thomas (W.E.F 13th September 2012)

c) Relative of Key management personnel

Shamir Genomal

6 Previous year''s figures have been regrouped / reclassified wherever necessary to make them comparable with the current year''s classification.

---

Mar 31, 2012

1 Brief about the Company

The Company was set up in the year 1995 with the key objective of bringing the innerwear brand "JOCKEY" to India. The core values of the brand include youthfulness, fun, quality, value, confidence and innovation. The company has introduced a wide range of quality products for men, women and children as well as innovative marketing concepts such as display modules aimed at enhancing the consumer's involvement with the purchase.

The company commenced operations in the year 1995 in Bangalore with the manufacturing, distribution and marketing of Jockey products.

The company has added to its profile by entering in to license with "SPEEDO", A globally known International brand for swim wear. Wide range of products are launched in India by the company in the year 2011.

2A Terms /Rights attached to Equity Shares

Equity Shares: The company has one class of equity shares having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the board of directors is subject to the approval of the shareholders in the ensuing annual general meeting except in case of interim dividend.

2B Company does not have any holding company or subsidiary company, Shares held by holding and subsidiary company does not arise.

3A Litigations

In accordance with Accounting Standard 29 on Provisions, Contingent Liabilities and Contingent Assets as notified by the Companies ( Accounting Standard ) Rules 2006 the following provisions are made in the books of accounts.

4A Disclosure pursuant to clause 32 of the listing agreements

a) Loans and Advances in the nature of loans to subsidiary : NA (P.Y - NA)

b) Loans and Advances in the nature of loans to Associates : NA (P.Y - NA)

c) Loans and Advances in the nature of loans where there is :

i) No repayment schedule or repayment beyond seven years : NA (P.Y - N.A)

ii ) No Interest of Interest below sec. 372A of the companies Act, 1956: NA (P.Y - NA)

5 Contingent liabilities and commitments

As at As at Particulars 31stMarch2012 31stMarch2011

Rs. Rs.

(i)Contingent Liabilities

(a)Claims against the company not acknowledged as debt 1)Other disputed demands - Jai Agencies 876,252 876,252

(b) Guarantees 9,049,970 9,049,970

(c) Other money for which the company is contingently liable

1) Income Tax matters under appeal ( to the 21,097,402 21,097,402 extent ascertained) [Income Tax Claims are disputed by company and is being contested with various forums/authorities]

Out of the above Rs. 21,097,402/- is in relation to various assessment years, which the company has disputed & against which the company has preferred an Appeal. 31,023,624 31,023,624

(ii) Commitments

(a)Estimated amount of contracts remaining to be executed on capital account and not provided for 84,087,255 68,908,256

(b)Uncalled liability on shares and other investments partly paid - -

(c)Commitments towards lease obligations 741,484,193 622,421,135

825,571,448 691,329,391

856,595,072 722,353,015

Note:

1. The discount rate is based on the prevailing market yields of Indian Government Securities as at the balance sheet date for the estimated term of the obligation

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. In order to protect the capital and optimise returns within acceptable risk parameters, the plan assets are well diversified.

3. The estimated 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.

Note:

1. The discount rate is based on the prevailing market yields of Indian Government Securities as at the balance sheet date for the estimated term of the obligation.

2. The estimated 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.

5 Leasing arrangements:

Finance Lease:

The company does not have any item covered under finance lease which needs disclosure as per Accounting Standard 19 - "Accounting for Leases".

Operating Lease:

The significant leasing arrangements entered into by the Company include the following:

1) Buildings taken on operating lease with lease term between 11 and 144 months for office premises, Factory premises and residential accommodation for employees and which are renewable on a periodic basis by mutual consent of both parties. There are no restrictions imposed by lease arrangements, such as those concerning dividends, additional debt and further leasing.

3) Lease payments recognized under rent expenses.

The Company has various operating leases for office facilities and residential premises for employees that are renewable on a periodic basis. Rental expenses for operating leases recognized in profit and loss account for the year is Rs. 73,528,796/- (P.Y.Rs. 59,407,720/- )

6 Segmental Information

The Company is engaged in the business of "Manufacturing of Garments". As the basic nature of these articles are governed by the same set of risk and returns, these have been re-grouped as a single business segment. Further the company sells primarily in the domestic market where its operations are governed by the same set of risks and returns and the overseas sales are insignificant. Accordingly the separate primary and secondary segment reporting disclosure as envisaged in Accounting Standard (AS - 17) on Segmental Reporting notified by the Companies (Accounting Standard) Rules 2006 is not applicable to the company.

7 Disclosure in respect of Related Parties pursuant to Accounting Standard 18 :

(i) List of Related Parties:

a) Enterprises in which KMPs or their relatives having significant influence. Page Garments Exports Private Limited

b) Key management personnel Sunder Genomal

c) Relative of Key management personnel Shamir Genomal

8 The financial statements for the year ended March 31, 2011 had been prepared as per the applicable Schedule VI to the Companies Act, 1956. Consequent to the notification of Revised Schedule VI under the Companies Act, 1956, the financial statements for the year ended March 31,2012 are prepared as per Revised Schedule VI. Accordingly, the previous year figures have also been reclassified to confirm to this year's classification. The adoption of Revised Schedule VI for previous year figures does not impact recognition and measurement principles followed for preparation of financial statements.

---

Mar 31, 2011

1. Contingent liability not provided for in respect of:

2010-11 2009-10 Particulars (Rs.) (Rs.)

A. Claims against the Company not acknowledge as debts - i) Other disputed demands - Jai Agencies 876,252 876,252

B. Bank Guarantees 9,049,970 9,049,970

C. Income Tax matters under appeal (to the extent ascertained) 8,607,181 1,014,819 [Income Tax Claims are disputed by company and is being contested with various forums/authorities ].

2. Capital Commitments

Estimated value of Capital Commitments (Net of Advance) Rs. 68,908,256/- (Previous Year Rs. 42,063,683/-)

3. Capitalization of borrowing cost:-

During the year the company has capitalized interest amounting to Rs.Nil (Previous year - Rs.Nil/-)

4. Leasing arrangements:

Finance Lease : The company does not have any item covered under fnance lease which needs disclosure as per Accounting Standard 19 - "Accounting for Leases”.

Operating Lease: The signifcant leasing arrangements entered into by the Company include the following:

i) Buildings taken on operating lease with lease term between 11 and 72 months for offce premises and residential accommodation for employees and which are renewable on a periodic basis by mutual consent of both parties.

ii) All the operating leases are cancelable by the lessee for any reason by giving notice of between 1 and 3 months.

iii) There are no restrictions imposed by lease arrangements, such as those concerning dividends, additional debt and further leasing.

iv) Lease payments recognized under rent expenses in Schedule K and M :

The Company has various operating leases for offce facilities and residential premises for employees that are renewable on a periodic basis. Rental expenses for operating leases recognized in proft and loss account for the year is Rs.59,638,600/- (P.Y.Rs. 39,943,638/-)

5. Segmental Information

The Company is engaged in the business of "Manufacturing of Garments”. As the basic nature of these articles are governed by the same set of risk and returns, these have been re-grouped as a single business segment. Further the company sells primarily in the domestic market where its operations are governed by the same set of risks and returns and the overseas sales are insignifcant. Accordingly the separate primary and secondary segment reporting disclosure as envisaged in Accounting Standard (AS - 17) on Segmental Reporting notifed by the Companies ( Accounting Standard ) Rules 2006 is not applicable to the company.

6. Disclosure of Foreign Currency Exposure

There are no foreign currency exposure that has not been hedged by a derivative instrument or otherwise.

The principal and interest amount payable on Foreign Currency working capital loan has been covered under the forward contract. The Premium payable on the forward cover had been amortised over the tenure of loan.

The above disclosures have been made consequent to an announcement by the Institute of Chartered Accountants of India in December, 2005, which is applicable to the fnancial periods ending on or after 31st March, 2011.

7. Disclosure in respect of Related Parties pursuant to Accounting Standard 18 :

(i) List of Related Parties:

a) Enterprises in which KMPs or their relatives having signifcant infuence. Page Garments Exports Private Limited

Trigen Apparel Private Limited Trigen Resources Phillipines Inc., Genco Holding Private Limited

b) Key management personnel Sunder Genomal

c) Relative of Key management personnel Shamir Genomal

8. In accordance with Accounting Standard 29 on Provisions, Contingent Liabilities and Contingent Assets as notifed by the Companies ( Accounting Standard ) Rules 2006 the following provisions are made in the books of accounts.

a) Litigations

The Company has income tax demand total amounting to Rs. 21.1 Million in relation to various assessment years, which the company has disputed & against which the company has preferred an Appeal.

Earned Leave

The defned beneft obligation of compensated absence in respect of the employees of the companies as at 31st March, 2011 is Rs.26,325,032/- (Previous year Rs.18,121,597/-).

9. The Balances in Debtors and Creditors are subject to confrmation and reconciliation. Inventory with third parties are subject to reconciliation.

10. Debts due from directors or other offcers of the company at any time during the year : NIL ( Previous year : NIL)

11. Prior period items are income or expenses which arise in the current period as a result of errors or omissions in the preparation of the fnancial statements of one or more prior periods.

12. Disclosures pursuant to clause 32 of the listing agreements

a) Loans and advances in the nature of loans to subsidiary : NA (P.Y - NA)

b) Loans and advances in the nature of loans to Associates : NA (P.Y - NA)

c) Loans and advances in the nature of loans where there is

i) No repayment schedule or repayment beyond seven years : NA (P.Y - NA)

ii) No interest or Interest below sec. 372A of the Companies Act,1956 : NA (P.Y - NA)

13. Previous years fgures have been regrouped/reclassifed wherever necessary to make them comparable with the current years classifcation.

---

Mar 31, 2010

1 BRIEF ABOUT THE COMPANY

The company was set up in the year 1995 with the key objective of bringing the innerwear brand "JOCKEY" to India. The core values of the brand include youthfulness, fun, quality, value, confidence and innovation. The company has introduced a wide range of quality products for men, women and children as well as innovative marketing concepts such as display modules aimed at enhancing the consumers involvement with the purchase.

The company commenced operations in the year 1995 in Bangalore with the manufacturing, distribution and marketing of Jockey products. The company has the distinction of being the only innerwear brand in the country which has been awarded the "Superbrand" status. The "Superbrand" is accredited by Superbrand Organization which is an independent arbiter on branding.

2 Capital Commitments

Estimated value of Capital Commitments (Net of Advance) Rs. 4,20,63,683/- (Previous Year Rs. 30,28,667/-)

3 Additional information pursuant to the provisions of paragraphs 3, 4C and 4D of Part II of Schedule VI to the Companies Act, 1956

4 Capitalization of borrowing cost:-

During the year the company has capitalized interest amounting to Rs.Nil ( Previous year - Rs.26,05,029/-)

5 Leasing arrangements: Finance Lease:

The company does not have any item covered under finance lease which needs disclosure as per Accounting Standard 19 - "Accounting for Leases".

Operating Lease:

The significant leasing arrangements entered into by the Company include the following:

i) Buildings taken on operating lease with lease term between 11 and 72 months for office premises and residential accommodation for employees and which are renewable on a periodic basis by mutual consent of both parties.

ii) All the operating leases are cancelable by the lessee for any reason by giving notice of between 1 and 3 months.

iii) There are no restrictions imposed by lease arrangements, such as those concerning dividends, additional debt and further leasing.

iv) Lease payments recognized under rent expenses in Schedule K and L :

The Company has various operating leases for office facilities and residential premises for employees that are renewable on a periodic basis. Rental expenses for operating leases recognized in profit and loss account for the year is Rs.3,99,43,638/- (P.Y.Rs.2,69,28,912/-)

6 Segmental Information

The Company is engaged in the business of "Manufacturing of Garments". As the basic nature of these articles are governed by the same set of risk and returns, these have been re-grouped as a single business segment. Further the company sells primarily in the domestic market where its operations are governed by the same set of risks and returns and the overseas sales are insignificant. Accordingly the separate primary and secondary segment reporting disclosure as envisaged in Accounting Standard (AS - 17) on Segmental Reporting notified by the Companies ( Accounting Standard ) Rules 2006 is not applicable to the company.

The principal and interest amount payable on Foreign Currency working capital loan has been covered under the forward contract. The Premium payable on the forward cover had been amortised over the tenure of loan

The above disclosures have been made consequent to an announcement by the Institute of Chartered Accountants of India in December, 2005, which is applicable to the financial periods ending on or after 31st March, 2006.

7 Disclosure in respect of Related Parties pursuant to Accounting Standard 18 :

(i) List of Related Parties:

a) Enterprises in which KMPs or their relatives having significant influence. Page Garments Exports Private Limited

Trigen Apparel Private Limited Trigen Resources Philippines Inc., Genco Holding Private Limited

b) Key management personnel

Sunrier Opnnmfll

8 In accordance with Accounting Standard 29 on Provisions, Contingent Liabilities and Contingent Assets as notified by the Companies ( Accounting Standard ) Rules 2006 the following provisions are made in the books of accounts.

a) Litigations

In respect of Income tax demand total amounting to Rs. 2.11 Crores arising on account of claiming deduction u/s.80JJAA and under section 35D. The company has provided provisions to the extent of 50% of the disputed amount towards deduction U/s 80JJAA.Further the company has appealed against the above mentioned orders before Joint Commissioner Income Tax (Appeals).

9 As per the company policy, the maximum gratuity payable to the employee is restricted to the maximum limit specified under Sub Section 3 of Section 4 of the Gratuity Act 1972. The maximum limit had been enhanced to Rs. 10 Lakhs from the erstwhile limit of Rs. 3.5 Lakhs as per Payment of Gratuity (Amendment) Act, 2010. However for the purpose of Gratuity Provision Computation, the company has considered the erstwhile limit of Rs.3.5 Lakhs instead of enhanced limit of Rs.10 Lakhs. In the absence of actuarial valuation certificate under the new enhanced limit, the impact on the financial statement cannot be determined."

10 The disclosure required under Accounting Standard 15 " Employee Benefits " notified in the companies (accounting standards ) rules 2006 is given below :-

Note:

1 The discount rate is based on the prevailing market yields of Indian Government Securities as at the balance sheet date for the estimated term of the obligation

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 companys policy for plan asset management. In order to protect the capital and optimise returns within acceptable risk parameters, the plan assets are well diversified.

3 The estimated 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

11 The Balances in Debtors and Creditors are subject to confirmation and reconciliation.Inventory with third parties are subject to reconciliation.

12 Debts due from directors or other officers of the company at any time during the year : NIL ( Previous year : NIL)

13 Prior period items are income or expenses which arise in the current period as a result of errors or omissions in the preparation of the financial statements of one or more prior periods.

14 Disclosures pursuant to clause 32 of the listing agreements

(a) Loans and advances in the nature of loans to subsidiary : NA ( P.Y - NA )

(b) Loans and advances in the nature of loans to Associates : NA ( P.Y - NA )

(c) Loans and advances in the nature of loans where there is

i) No repayment schedule or repayment beyond seven years - NA ( P.Y - NA )

ii) No interest or Interest below sec.372A of the Companies Act, 1956: NA ( P.Y - NA )

(d) Loans and advances in the nature of loans to companies in which directors are interested:

15 Previous years figures have been regrouped / reclassified wherever necessary to make them comparable with the current years classification.