Notes to Accounts of Trident Ltd.

Mar 31, 2025

N Provisions, contingent liabilities and
contingent assets

Provisions

A provision is recognised when the Company has a
present obligation (legal or constructive) as a result of
past events and it is probable that an outflow of resources
will be required to settle the obligation in respect of
which a reliable estimate can be made. Provisions are
determined based on the best estimate required to settle
the obligation at the balance sheet date and measured
using the present value of cash flows estimated to
settle the present obligations (when the effect of time
value of money is material). These are reviewed at each
balance sheet date and adjusted to reflect the current
best estimates.

Onerous contracts

I f 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.

Contingent liabilities

A contingent liability is a possible obligation that arises
from past events and the existence of which will be
confirmed only by the occurrence or non-occurrence of
one or more uncertain future events not wholly within
the control of the enterprise. Contingent liabilities
are disclosed by way of note to the standalone Ind AS
financial statements.

Contingent Assets

A contingent asset is a possible asset that arises from
past events the existence of which will be confirmed only
by the occurrence or non-occurrence of one or more
uncertain future events not wholly within the control of
the enterprise.

Contingent assets are neither recognised nor disclosed
in the standalone Ind AS financial statements.

O Financial instruments

A financial instrument is any contract that gives rise to
a financial asset of one entity and a financial liability or
equity instrument of another entity.

(a) Financial assets

Initial recognition and measurement

Financial assets are classified, at initial recognition,
as subsequently measured at amortised cost, fair
value through other comprehensive income (OCI),
and fair value through profit or loss.

I n order for a financial asset to be classified and
measured at amortised cost or fair value through
OCI, 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.

All financial assets are recognised initially at fair
value plus, in the case of financial assets not recorded
at fair value through profit or loss, transaction
costs that are attributable to the acquisition of
the financial asset. Transaction costs of financial
assets carried at fair value through profit or loss
are expensed in the Statement of Profit and Loss.
Purchases or sales of financial assets that require
delivery of assets within a time frame established
by regulation or convention in the marketplace
(regular way trades) are recognised on the trade
date, i.e., the date that the Company commits to
purchase or sell the asset. Trade receivables that
do not contain a significant financing component
are measured transaction price.

Subsequent measurement

Subsequent measurement of financial assets
depends on the Company''s business model
for managing the asset and the cash flow
characteristics of the asset. For the purposes of

subsequent measurement, financial assets are
classified in four categories:

• Financial assets at amortised cost (debt
instruments)

• Financial assets at fair value through other
comprehensive income (FVTOCI) with
recycling of cumulative gains and losses (debt
instruments)

• Financial assets designated at fair value
through OCI with no recycling of cumulative
gains and losses upon derecognition (equity
instruments); and

• Financial assets at fair value through profit
or loss

Financial assets at amortised cost (debt
instruments)

A ''financial asset'' is measured at the amortised
cost if both the following conditions are met:

a) The asset is held within a business model
whose objective is to hold assets for collecting
contractual cash flows, and

b) Contractual terms of the asset give rise on
specified dates to cash flows that are solely
payments of principal and interest (SPPI) on
the principal amount outstanding.

After initial measurement, such financial assets
are subsequently measured at amortised cost
using the effective interest rate (EIR) method.
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 finance income in the
Statement of Profit and Loss. The losses arising
from impairment are recognised in the Statement
of Profit and Loss.

Interest Income

For all debt instruments measured either at
amortised cost or at fair value through other
comprehensive income, interest income is
recorded using the effective interest rate (EIR).
EIR is the rate that exactly discounts the estimated
future cash payments or receipts over the expected
life of the financial instrument or a shorter period,
where appropriate, to the gross carrying amount
of the financial asset or to the amortised cost of
a financial liability. When calculating the effective
interest rate, the Company estimates the expected
cash flows by considering all the contractual
terms of the financial instrument (for example,

prepayment, extension, call and similar options)
but does not consider the expected credit losses.
Interest income is included in finance income in the
Statement of Profit and Loss.

Financial assets at FVTOCI (debt instrument)

A ''financial asset'' is classified as at the FVTOCI if
both of the following criteria are met:

a) The objective of the business model is achieved
both by collecting contractual cash flows and
selling the financial assets, and

b) The asset''s contractual cash flows
represent SPPI.

Debt instruments included within the FVTOCI
category are measured initially as well as at each
reporting date at fair value. Fair value movements
are recognised in the other comprehensive income
(OCI). However, the Company recognises interest
income, impairment losses and reversals and
foreign exchange gain or loss in the Statement
of Profit and Loss. On derecognition of the asset,
cumulative gain or loss previously recognised in
OCI is reclassified from the equity to the Statement
of Profit and Loss. Interest earned whilst holding
FVTOCI debt instrument is reported as interest
income using the EIR method.

Financial assets designated at fair value
through OCI (equity instruments)

I n the case of equity instruments which are not
held for trading and where the Company has taken
irrevocable election to present the subsequent
changes in fair value in other comprehensive
income, these elected investments are initially
measured at fair value plus transaction costs and
subsequently, they are measured at fair value with
gains and losses arising from changes in fair value
recognised in other comprehensive income and
accumulated in the ''Equity instruments through
other comprehensive income'' under the head
''Other Equity''. The cumulative gain or loss is not
reclassified to profit or loss on disposal of the
investments. The Company makes such election
on an instrument -by-instrument basis.

I f the Company decides to classify an equity
instrument as at FVTOCI, then all fair value
changes on the instrument, excluding dividends,
are recognised in OCI. There is no recycling of the
amounts from OCI to the Statement of Profit and
Loss, even on sale of investment. However, the
Company may transfer the cumulative gain or loss
within equity.

A financial asset is held for trading if:

• it has been acquired principally for the purpose
of selling it in the near term; or

• on initial recognition it is part of a portfolio
of identified financial instruments that the
Company manages together and has a recent
actual pattern of short-term profit-taking; or

• it is a derivative that is not designated and
effective as a hedging instrument or a
financial guarantee.

Gains and losses on these financial assets are
never recycled to the Statement of Profit and
Loss. Dividends are recognised as other income
in the Statement of Profit and Loss when the right
of payment has been established, except when
the Company benefits from such proceeds as a
recovery of part of the cost of the financial asset, in
which case, such gains are recorded in OCI. Equity
instruments designated at fair value through OCI
are not subject to impairment assessment.

Financial assets at FVTPL (equity
instruments)

Financial assets at fair value through profit or
loss are carried in the Balance Sheet at fair value
with net changes in fair value recognised in the
Statement of Profit and Loss.

I n case of equity instruments which are held for
trading are initially measured at fair value plus
transaction costs and subsequently, they are
measured at fair value with gains and losses
arising from changes in fair value recognised in
the Statement of Profit and Loss.

This category includes derivative instruments and
listed equity investments which the Company had
not irrevocably elected to classify at fair value
through OCI. Dividends on listed equity investments
are recognised in the Statement of Profit and Loss
when the right of payment has been established.

Investment in Subsidiaries and Associates

I nvestment in Subsidiaries is carried at deemed
cost in the standalone financial statements.

Derecognition

A financial asset (or, where applicable, a part of a
financial asset or part of a group of similar financial
assets) is primarily derecognised when:

• The rights to receive cash flows from the asset
have expired, or

• The Company has transferred its rights to receive
cash flows from the asset or has assumed an
obligation to pay the received cash flows in full
without material delay to a third party under
a ''pass-through'' arrangement; and either (a)
the Company has transferred substantially all
the risks and rewards of the asset, or (b) the
Company has neither transferred nor retained
substantially all the risks and rewards of the
asset, but has transferred control of the asset.

Impairment of financial assets

The Company applies the expected credit loss model
for recognising impairment loss on financial assets
measured at amortised cost, debt instruments at
FVTOCI and other contractual rights to receive cash
or other financial asset.

Expected credit losses are the weighted average
of credit losses with the respective risks of
default occurring as the weights. Credit loss is the
difference between all contractual cash flows that
are due to the Company in accordance with the
contract and all the cash flows that the Company
expects to receive (i.e. all cash shortfalls),
discounted at the original effective interest rate
(or credit-adjusted effective interest rate for
purchased or originated credit-impaired financial
assets). The Company estimates cash flows by
considering all contractual terms of the financial
instrument (for example, prepayment, extension,
call and similar options) through the expected life
of that financial instrument.

The Company measures the loss allowance for
a financial instrument at an amount equal to the
lifetime expected credit losses if the credit risk on
that financial instrument has increased significantly
since initial recognition. If the credit risk on a
financial instrument has not increased significantly
since initial recognition, the Company measures the
loss allowance for that financial instrument at an
amount equal to 12-month expected credit losses.
12-month expected credit losses are portion of the
life-time expected credit losses and represent the
lifetime cash shortfalls that will result if default
occurs within the 12 months after the reporting
date and thus, are not cash shortfalls that are
predicted over the next 12 months.

For trade receivables, the Company follows
"simplified approach for recognition of impairment
loss. The application of simplified approach does
not require the Company to track changes in
credit risk.

Further, for the purpose of measuring lifetime
expected credit loss allowance for trade
receivables, the Company has used a practical
expedient as permitted under Ind AS 109. This
expected credit loss allowance is computed based
on a provision matrix which takes into account
historical credit loss experience and adjusted for
forward-looking information.

(b) Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial
recognition, as financial liabilities at fair value
through profit or loss, loans and borrowings,
payables, or as derivatives as hedging instruments
in an effective hedge, as appropriate. All financial
liabilities are recognised initially at fair value and,
in the case of loans and borrowings and payables,
net of directly attributable transaction costs. The
Company''s financial liabilities include trade and
other payables, loans and borrowings including
derivative financial instruments.

Subsequent measurement

The measurement of financial liabilities depends on
their classification, as described below:

Financial liabilities at fair value through
profit or loss

Financial liabilities at fair value through profit or
loss (FVTPL) include financial liabilities held for
trading and financial liabilities designated upon
initial recognition as at FVTPL. Financial liabilities
are classified as held for trading if they are incurred
for the purpose of repurchasing in the near term.
This category also includes derivative financial
instruments entered into by the Company that are
not designated as hedging instruments in hedge
relationships as defined by Ind AS 109 ''Financial
instruments''.

Gains or losses on liabilities held for trading are
recognised in the Statement of Profit and Loss.

Financial liabilities at amortised cost

After initial recognition, financial liabilities are
subsequently measured at amortised cost using
the EIR method. Gains and losses are recognised
in the Statement of Profit and Loss when the
liabilities are derecognised as well as through
the EIR amortisation process. 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 as finance costs in the Statement of Profit
and Loss.

Derecognition

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 financial liability 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 derecognition 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.

Offsetting of financial instruments

Financial assets and financial liabilities are offset
and the net amount is reported in the Balance
Sheet if there is a currently enforceable legal right
to offset the recognised amounts and there is an
intention to settle on a net basis, to realise the
assets and settle the liabilities simultaneously.

P Earnings per share

Basic earnings per share are calculated by dividing
the net profit or loss for the year attributable to equity
shareholders by the weighted average number of equity
shares outstanding during the year.

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

Treasury shares are reduced while computing basic and
diluted earnings per share.

Q Current versus non-current classification

The Company presents assets and liabilities in
the balance sheet based on current/ non-current
classification. An asset is treated as current when it is:

• Expected to be realised or intended to be sold or
consumed in normal operating cycle

• Held primarily for the purpose of trading

• Expected to be realised within twelve months after
the reporting period, or

• Cash or cash equivalent unless restricted from being
exchanged or used to settle a liability for at least
twelve months after the reporting period

All other assets are classified as non-current.

A liability is current when:

• It is expected to be settled in normal operating cycle

• It is held primarily for the purpose of trading

• It is due to be settled within twelve months after the
reporting period, or

• There is no unconditional right to defer the settlement
of the liability for at least twelve months after the
reporting period

The terms of the liability that could, at the option of the
counterparty, result in its settlement by the issue of
equity instruments do not affect its classification.

The Company classifies all other liabilities as non¬
current.

Deferred tax assets and liabilities are classified as non¬
current assets and liabilities.

Based on the nature of products/activities of the
Company and the normal time between acquisition of
assets and their realisation in cash or cash equivalents,
the Company has determined its operating cycle as 12
months for the purpose of classification of its assets and
liabilities as current and non-current.

R Derivative financial instruments and hedge
accounting

Derivative financial instruments and hedge
accounting

The Company uses derivative financial instruments
such as foreign currency forward contracts and option
currency contracts to hedge its foreign currency risks
arising from highly probable forecast transactions. The
counterparty for these contracts is generally a bank.

Derivatives not designated as hedging
instruments

This category has derivative assets or liabilities which
are not designated as hedges.

Although the Company believes that these derivatives
constitute hedges from an economic perspective, they
may not qualify for hedge accounting under Ind AS 109.
Any derivative that is either not designated a hedge, or is
so designated but is ineffective, is recognised on Balance
Sheet and measured initially at fair value. Subsequent to
initial recognition, derivatives are re-measured at fair
value, with changes in fair value being recognised in the
Statement of Profit and Loss. Derivatives are carried as
financial assets when the fair value is positive and as
financial liabilities when the fair value is negative.

Hedge Accounting

The derivatives that are designated as hedging instrument
under Ind AS 109 to mitigate risk arising out of foreign
currency transactions are accounted for as cash flow
hedges. The Company enters into hedging instruments
in accordance with policies as approved by the Board of
Directors with written principles which is consistent with
the risk management strategy of the Company.

The hedge instruments are designated and documented
as hedges at the inception of the contract. The
effectiveness of hedge instruments is assessed and
measured at inception and on an ongoing basis.

When a derivative is designated as a cash flow hedging
instrument, the effective portion of changes in the fair
value of the derivative is recognised in OCI, e.g., cash
flow hedging reserve and accumulated in the cash flow
hedging reserve. Any ineffective portion of changes in
the fair value of the derivative is recognised immediately
in the Statement of Profit and Loss. The amount
accumulated is retained in cash flow hedge reserve and
reclassified to profit or loss in the same period or periods
during which the hedged item affects the Statement of
Profit and Loss. Under fair value hedge, the change in
the fair value of a hedging instrument is recognised in
the Statement of Profit and Loss. The change in the fair
value of the hedged item attributable to the risk hedged
is recorded as part of the carrying value of the hedged
item and is also recognised in the Statement of Profit
and Loss.

If the hedging instrument no longer meets the criteria for
hedge accounting, then hedge accounting is discontinued
prospectively. If the hedging instrument is terminated
or exercised prior to its maturity/ contractual term,
the cumulative gain or loss on the hedging instrument
recognised in cash flow hedging reserve till the period
the hedge was effective remains in cash flow hedging
reserve until the forecasted transaction occurs. The
cumulative gain or loss previously recognised in the cash
flow hedging reserve is reclassified to the Statement
of Profit and Loss upon the occurrence of the related
forecasted transaction. If the forecasted transaction is no
longer expected to occur, then the amount accumulated
in cash flow hedging reserve is reclassified immediately
in the Statement of Profit and Loss.

S Fair Value Measurement

The Company measures financial instruments, such as,
derivatives at fair value at each reporting date. Fair value
is the price that would be received to sell an asset or paid
to transfer a liability in an orderly transaction between
market participants at the measurement date. The fair
value measurement is based on the presumption that

the transaction to sell the asset or transfer the liability
takes place either:

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

• In the absence of a principal market, in the most
advantageous market for the asset or liability

The principal or the most advantageous market must be
accessible by the Company.

The fair value of an asset or a liability is measured using
the assumptions that market participants would use
when pricing the asset or liability, assuming that market
participants act in their economic best interest.

A fair value measurement of a non-financial asset takes
into account a market participant''s ability to generate
economic benefits by using the asset in its highest and
best use or by selling it to another market participant
that would use the asset in its highest and best use.

The Company uses valuation techniques that are
appropriate in the circumstances and for which sufficient
data are available to measure fair value, maximising the
use of relevant observable inputs and minimising the use
of unobservable inputs.

All assets and liabilities for which fair value is measured
or disclosed in the standalone Ind AS financial statements
are categorised within the fair value hierarchy, described
as follows, based on the lowest level input that is
significant to the fair value measurement as a whole:

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

• Level 2-Valuation techniques for which the lowest level
input that is significant to the fair value measurement
is directly or indirectly observable

• Level 3-Valuation techniques for which the lowest level
input that is significant to the fair value measurement
is unobservable

For assets and liabilities that are recognised in the
standalone Ind AS financial statements on a recurring
basis, the Company determines whether transfers
have occurred between levels in the hierarchy by re¬
assessing categorisation (based on the lowest level input
that is significant to the fair value measurement as a
whole) at the end of each reporting period.

The Company''s management determines the policies and
procedures for both recurring fair value measurement,
such as derivative instruments and unquoted financial
assets measured at fair value, and for non-recurring
measurement, such as assets held for disposal in
discontinued operation.

External valuers are involved for valuation of significant
assets, such as properties and unquoted financial
assets, and significant liabilities, such as contingent
consideration, if any.

At each reporting date, the management analyses the
movements in the values of assets and liabilities which
are required to be re-measured or re-assessed as per
the Company''s accounting policies. For this analysis,
the management verifies the major inputs applied
in the latest valuation by agreeing the information
in the valuation computation to contracts and other
relevant documents.

The management, in conjunction with the Company''s
external valuers, also compares the change in the fair
value of each asset and liability with relevant external
sources to determine whether the change is reasonable.

For the purpose of fair value disclosures, the Company
has determined classes of assets and liabilities on the
basis of the nature, characteristics and risks of the asset
or liability and the level of the fair value hierarchy as
explained above.

This note summarises accounting policy for fair value.
Other fair value related disclosures are given in the
relevant notes.

T Cash and Cash Equivalents

Cash and cash equivalents in the 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
subject to an insignificant risk of change in value.

U Dividend to equity holders of the Company

The Company recognises a liability to pay dividend to
equity holders of the Company 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, However, Board of Directors of
a company may declare interim dividend during any
financial year out of the surplus in the Statement of Profit
and Loss and out of the profits of the financial year in
which such interim dividend is sought to be declared. A
corresponding amount is recognised directly in equity.

V Foreign exchange gains and losses

The Company''s functional and reporting currency is INR.
Exchange differences are dealt with as follows:

Foreign currency transactions are recorded at the
exchange rate that approximates the actual rate at the
date of transaction. Monetary items denominated in a
foreign currency are reported at the closing rate as at

the date of balance sheet. Non-monetary items, which
are carried at fair value denominated in foreign currency,
are reported at the exchange rate that existed when
such values were determined, otherwise on historical
exchange rate that existed on the date of transaction.

The exchange difference arising on the settlement of
monetary items or on reporting these items at rates
different from the rates at which these were initially
recorded/reported in previous financial statements are
recognised as income/expense in the period in which
they arise. Further, where foreign currency liabilities
have been incurred in connection with property, plant
and equipment, the exchange differences arising
on reinstatement, settlement thereof during the
construction period are adjusted in the cost of the
concerned property, plant and equipment to the extent
of exchange differences arising from foreign currency
borrowings are regarded as an adjustment to interest
costs in accordance of para 6 (e) as per Ind AS 23.

W Treasury shares

The Company has created an Employee Benefit
Trust (EBT) for providing share-based payment to its
employees. The Company uses EBT as a vehicle for
distributing shares to employees under the Employee
Stock Purchase Scheme 2020. The EBT buys shares
of the Company from the market, for giving shares to
employees. The Company treats EBT as its extension
and shares held by EBT are treated as treasury shares.

Own equity instruments that are reacquired (treasury
shares) are recognised at cost and deducted from
other equity. No gain or loss is recognised in profit or
loss on the purchase, sale, issue or cancellation of the
Company''s own equity instruments. Treasury shares
are reduced while computing basic and diluted earnings
per share.

The Company transfers the excess of exercise price over
the cost of acquisition of treasury shares, net of tax, by
EBT to General Reserve. In the event of sale in open
market, the company transfers the excess of sale price
over cost of acquisition of treasury shares, net of tax, to
Other Equity.

X Share-based Payments

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

Equity-settled transactions

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

appropriate valuation model. Further details are given in
Note 42.

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

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

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

When the terms of an equity-settled award are modified,
the minimum expense recognised is the grant date fair
value of the unmodified award, provided the original
vesting terms of the award are met. An additional
expense, measured as at the date of modification, is
recognised for any modification that increases the total
fair value of the share-based payment transaction,
or is otherwise beneficial to the employee. Where an
award is cancelled by the entity or by the counterparty,
any remaining element of the fair value of the award is
expensed immediately through profit or loss.

Y 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 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.

NOTE 2.2 KEY SOURCES OF ESTIMATION
UNCERTAINTY

In the application of the Company''s accounting policies, the
management of the Company is required to make judgements,
estimates and assumptions about the carrying amounts
of assets and liabilities that are not readily apparent from
other sources. The estimates and associated assumptions
are based on historical experience and other factors that
are considered to be relevant. Actual results may differ from
these estimates.

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 if
the revision affects only that period or in the period of the
revision and future periods if the revision affects both current
and future periods.

The following are the areas of estimation uncertainty and
critical judgements that the management has made in the
process of applying the Company''s accounting policies
and that have the most significant effect on the amounts
recognised in the standalone Ind AS financial statements: -

Useful lives of depreciable tangible assets and
Intangible assets

Management reviews the useful lives of depreciable assets
at each reporting date. As at March 31, 2025 management
assessed that the useful lives represent the expected utility
of the assets to the Company. Further, there is no significant
change in the useful lives as compared to previous year.

The intangible assets are amortised over the estimated
useful life. The estimated useful life and amortisation method
are reviewed at the end of each reporting period, with the
effect of any changes in estimate being accounted for on a
prospective basis.

Defined benefit plans

The cost of the defined benefit plan and other post¬
employment benefits and the present value of such 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,

mortality rates and future pension increases. Due to the
complexities involved in the valuation and its long-term
nature, a defined benefit obligation is highly sensitive to
changes in these assumptions. All assumptions are reviewed
at each reporting date.

Fair value measurement of Land

Fair value of the Company''s land as at April 1, 2015 has
been arrived at on the basis of a valuation carried out as on
the respective date by an independent valuer not related to
the Company. The fair value was derived using the market
comparable approach based on recent market prices without
any significant adjustments being made to the market
observable data. In estimating the fair value of the properties,
the highest and best use of the properties is their current use.

Impairment of non-financial assets

Impairment exists when the carrying value of an asset or cash
generating unit exceeds its recoverable amount, which is the
higher of its fair value less costs of disposal and its value in
use. The fair value less costs of disposal calculation is based
on available data from binding sales transactions, conducted
at arm''s length, for similar assets or observable market
prices less incremental costs for disposing of the asset. The
value in use calculation is based on a DCF model. The cash
flows are derived from the budget for determined period and
do not include restructuring activities that the Company is not
yet committed to or significant future investments that will
enhance the asset''s performance of the CGU being tested.
The recoverable amount is sensitive to the discount rate
used for the DCF model as well as the expected future cash-
inflows, the growth rate used for extrapolation purposes
and the impact of general economic environment (including
competitors).

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.

Leases - Estimating the period of lease contracts
with related parties

In case of lease contracts with related parties, there exist
economic incentive for the Company to continue using the
leased premises for a period longer than the 11 months.
The period of expected lease in these cases is a matter of
estimation by the management. The estimate of lease period
impacts the recognition of ROU asset, lease liability and its
impact in the Statement of Profit and Loss. The lease terms in
the arrangements with related parties have been determined
considering the period for which management has an
economic incentive to use the leased asset (i.e. reasonably
certain to use the asset for the said period of economic
incentive). Such assessment of incremental period is based
on management assessment of various factors including the
remaining useful life of the asset as on the date of transition.
The management has assessed period of arrangements with
related parties as higher of lease period mentioned in the
agreement or 10 years as at April 01, 2019.

Determining the lease term of contracts with
renewal and termination options - Company as
lessee

The Company determines the lease term as the non¬
cancellable term of the lease, together with any periods
covered by an option to extend the lease if it is reasonably
certain to be exercised, or any periods covered by an option
to terminate the lease, if it is reasonably certain not to
be exercised.

The Company has several 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.

Valuation of raw materials inventories

At each reporting date, the management applies judgement
in determining the appropriate valuation of raw materials
inventories(primarily for cotton), based on the consumption
analysis of raw materials inventories, current market
trend and future expectation of consumption for these raw
materials inventories. These judgements are reviewed and
adjusted regularly in the light of market driven changes, past
experience and internally generated information.

b) Defined benefit plans
Gratuity scheme

The Company has a defined gratuity plan (funded) and the gratuity plan is governed by The Payment of Gratuity Act 1972
("Act"). Under the Act, employees who have completed five years of service are entitled for gratuity benefit of 15 days salary
for each completed year of service or part thereof in excess of six months. The amount of benefit depends on respective
employee''s salary, the years of employment and retirement age of the employee and the gratuity benefit is payable on
termination/retirement of the employee. There is no maximum limit for the payment of gratuity benefit. The present value
of obligation is determined based on an actuarial valuation as at the reporting date using the Projected Unit Credit Method.

The fund has the form of an irrevocable trust and it is governed by Board of Trustees. The Board of trustees is responsible
for the administration of the plan assets and for the definition of investment strategy. The scheme is funded with qualifying
insurance policies. The Company is contributing to trust towards the payment of premium of such gratuity schemes.

The following table sets out the details of defined benefit plan and the amounts recognised in the standalone Ind AS
financial statements:

NOTE 39 - SEGMENT INFORMATION

I Segment accounting policies:

a. Product and Services from which reportable segment derive their revenues (Primary Business
Segments)

Based on the nature and class of product and services, their customers and assessment of differential risks and
returns and financial reporting results reviewed by Chief Operating Decision Maker (CODM), the Company has
identified the following business segments which comprises of.

• Yarn

• Towel

• Bedsheets

• Paper and Chemicals

b. Geographical segments (secondary business segments)

The geographical segments considered and reviewed by Chief Operating Decision Maker for disclosure are based on
markets, broadly as under:

India

USA

Rest of the world

c. Segment accounting policies

Segment accounting policies: In addition to the significant accounting policies applicable to the business segment as
set out in note 2, the accounting policies in relation to segment accounting are as under:

i. Segment assets and liabilities:

Segment assets include all operating assets used by a segment and consist principally of cash, debtors,
inventories, right of use assets and property, plant and equipment including capital work in progress, net of
allowances and provisions, which are reported as direct offset in the balance sheet. Segment liabilities include
all operating liabilities and consist principally of creditors and accrued liabilities.

ii Segment revenue and expenses:

Joint revenue and expenses of segments are allocated amongst them on reasonable basis. All other segment
revenue and expenses are directly attributable to the segments.

iii Inter segment sales:

I nter segment sales are accounted for at cost plus appropriate margin (transfer price) and are eliminated
in consolidation.

iv Segment results:

Segment results represent the profit before tax earned by each segment without allocation of central administration
costs, other non operating income as well as finance costs. Operating profit amounts are evaluated regularly by
the Chief Operating Decision Maker in deciding how to allocate resources and in assessing performance.

NOTE 42 -EMPLOYEES’ STOCK OPTION PLANS

The Board of Directors and the Shareholders of the Company had approved a Scheme called as "Trident Limited Employee Stock
Options Scheme - 2020 (" ESOS Scheme") and "Trident Limited Employee Stock Purchase Scheme - 2020" (" ESPS Scheme") in
their meeting held on July 9, 2020 and May 16, 2020 respectively. Pursuant to the ESOS Scheme, the Company has constituted
Trident Limited Employees Welfare Trust (''Trust'') to acquire, hold and allocate/transfer equity shares of the Company to eligible
employees (as defined in the ESOS and ESPS scheme) from time to time on the terms and conditions specified under the ESOS
Scheme and ESPS Scheme.

The said trust had purchased, during the FY 2020-21, Company''s equity shares aggregated to 100,000,000 equity shares from
the secondary open market at cost of Rs. 7.50 per share for which the Company had given loan to trust amounting to Rs. 751.0
Million. The financial statements of the Trust have been included in the standalone Ind AS financial statements of the Company
in accordance with the requirements of Ind AS and cost of such treasury shares has been presented as a deduction in other
equity. Such number of equity shares (which are lying with trust) have been reduced while computing basic and diluted earnings
per share.

Trident Employees Stock Options Scheme, 2020

The Company had granted 66,00,000 stock options under the ESOS Scheme on November 12, 2022. Each option granted and
vested under the Scheme shall entitle to the holder to acquire 1 equity share of Re. 1 each.

In respect of options granted under the Employees'' Stock Option Scheme, 2020, the details of options outstanding are as under:

NUIt 44 - FINANCIAL INbIKUMtNIb

Capital management

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

The Company''s capital management objectives are:

- to ensure the Company''s ability to continue as a going concern

- to provide an adequate return to shareholders by pricing products and services commensurately with the level of risk.

The Company manages capital risk in order to maximise shareholders'' profit by maintaining sound/optimal capital structure
through monitoring of financial ratios, such as net debt-to-equity ratio on a monthly basis and implements capital structure
improvement plan when necessary. There is no change in the overall capital risk management strategy of the Company
compared to last year.

* Investment in note 4 (a) represents investments in equity shares of subsidiaries and associate which are carried at cost and hence are not required
to be disclosed as per Ind AS 107 "Financial Instruments Disclosures". Hence, the same have been excluded from the above table.

The management assessed that fair value of trade receivables, cash and cash equivalents, other bank balances, other
current financial assets (except derivative financial assets), short term borrowings, trade payables and other current financial
liabilities (except derivative financial liabilities) approximate their carrying amounts largely due to short-term maturities of
these instruments.

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.

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:

Level 1: ''Quoted prices in an active market: This level of hierarchy includes financial instruments that are measured by reference
to quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: ''Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or
indirectly observable. This level of hierarchy include Company''s over-the-counter (OTC) derivative contracts and mutual funds.

Level 3: Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

Financial Risk Management Framework

The Company''s principal financial liabilities, other than derivatives, comprise loans and 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 and other receivables, receivables from government authorities, security deposits
and cash and cash equivalents that derive directly from its operations. The Company also holds investments and enters
in to derivative transactions.

The Company''s corporate treasury function provides services to the business, co-ordinates access to domestic and
international financial markets, monitors and manages the financial risks relating to the operations of the Company
through internal risk reports which analyse exposures by degree and magnitude of risks. These risks include market risk
(including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

The Company seeks to minimise the effects of these risks by using derivative financial instruments to hedge risk
exposures. The Company does not enter into or trade financial instruments, including derivative financial instruments,
for speculative purposes.

The Chief financial officer reports quarterly to the Board of Directors of the Company for monitoring risks and reviewing
policies implemented to mitigate risk exposures.

Credit risk

Credit risk arises when a counterparty defaults on its contractual obligations to pay resulting in financial loss to the
Company. The Company has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient
collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults. The Company has also
taken export credit insurance for mitigation of export credit risk for certain parties.

The maximum exposure to the credit risk at the reporting date is primarily from trade receivables amounting to Rs. 2,995.0
Million and Rs. 4,137.2 Million as of March 31, 2025 and March 31, 2024, respectively. Trade receivables consist of a large
number of customers, spread across diverse industries and geographical areas. Credit risk has always been managed
by the Company through credit approvals, establishing credit limits and continuously monitoring the credit worthiness
of customers to which the Company grants credit terms in the normal course of business and by way of taking letter of
credit, credit insurance against export receivables.

lij uivfuiunj i ur\ iiiaiiavjcinciii

The Company''s objective is to maintain optimum levels of liquidity to meet its cash and collat
all times.

The Chief Financial Officer of the Company is responsible for liquidity risk management a
established an appropriate liquidity risk management framework for the management of t
medium and long-term funding and liquidity management requirements. Liquidity risk is m
reserves, banking facilities and reserve borrowing facilities, by continuously monitoring fore
flows, and by matching the maturity profiles of financial assets and liabilities. The Chief Financ
same to the Board of Directors on quarterly basis.

(ii) Maturities of financial liabilities

The following tables detail the Company''s remaining contractual maturity for its non-derivati
with agreed repayment periods. The amount disclosed in the tables have been drawn up basec
contractual cash flows of financial liabilities based on the earliest date on which the Company c
The tables include both interest and principal cash flows.

Less than 3 years to 5 years undi:

Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market prices. Market risk comprises two types of risk: currency risk and interest rate risk. Financial instruments affected
by market risk includes loan and borrowings, lease liabilities and derivative financial instruments. The objective of market
risk management is to manage and control market risk exposures within acceptable parameters, while optimising the
return. The Company uses derivatives to manage market risks. Derivatives are only used for economic hedging purposes
and not as speculative investments. All such transactions are carried out within the guidelines set by the Board of Directors
and Risk Management Committee.

There has been no significant changes to the Company''s exposure to market risk or the methods in which they are managed
or measured.

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 undertakes transactions denominated in foreign currencies; consequently,
exposures to exchange rate fluctuations arise. The Company''s exposure to currency risk relates primarily to the Company''s
operating activities when transactions are denominated in a different currency from the Company''s functional currency.

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

---

Mar 31, 2024

b) Rights, preferences and restrictions attached to the equity shareholders:

The Company has only one class of equity shares having par value of Re. 1 per share (Previous year Re. 1 per share). Each shareholder is eligible for one vote per equity share held. In the event of liquidation of the Company, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding. The Company declares and pays dividend in Indian Rupees.The dividend proposed by the Board of directors is subject to the approval of the shareholders in the ensuing Annual general meeting.

a) Non convertible debentures

*During the previous year, the Company had issued NCD amounting to Rs. 250.0 million and these were secured against pledge of receipt of bank deposit of Rs. 275.0 million. During the current year, the Company has fully prepaid the Non-Convertible Debentures on March 29, 2024 along with interest applicable. (refer note 5,11 and note 42-I(B)).

b) Term loans

Term loans from banks are secured by way of equitable mortgage created or to be created on all the present and future immovable properties including land, buildings, structures, all plant and equipment attached thereon of the Company related to the specific capital project completed/in progress and hypothecation of all the movable properties including movable machinery, spares, tools and accessories, etc., present and future, subject to prior charges created and / or to be created in favour of the Company''s bankers on stocks of raw materials, semi finished and finished goods, consumable stores and other movable assets, as may be required for working capital requirements in the ordinary course of business. The mortgages and charges referred to above are pari-passu among the lenders. (refer note 42-I(A) and 42-II (A)). The amount disclosed as above is net of Current maturities of long-term debts - secured of Rs. 856.2 million (Previous year Rs. 179.4 million).

The interest rates range from 7.70% to 9.70% per annum (Previous year 6.25% to 9.80% per annum) before Interest subsidy under Technology Upgradation Fund Scheme from State Government of Madhya Pradesh.

For the current maturities of long-term borrowings, refer note 18 short term borrowings.

Cash credit/export packing credit/working capital loans from banks

Cash credit/export packing credit/working capital loans from banks are secured by hypothecation of raw materials, semi finished and finished goods and consumable stores.

The interest rates for cash credit/export packing credit/working capital loans from banks range from 4.90% to 8.65% per annum (Previous year 4.95% to 8.50% per annum).

The Company has been sanctioned working capital limits from banks during the year on the basis of security of current assets of the Company. The revised quarterly returns/statements filed by the Company for each quarter with such banks are in agreement with the books of accounts of the Company.

Corporate Overview Statutory Reports Financial Statements

Notes to the Standalone Ind AS Financial Statements

as at and for the year ended March 31, 2024

(All amounts in Rs. Million, unless otherwise stated)

NOTE 30 - FINANCE COSTS

Particulars	For the year ended March 31,2024	For the year ended March 31,2023
(a] Interest expense :
- On term loans, non convertible debentures, working capital loans etc. (net of	1,576.7	888.6
interest subsidy of Rs. 135.0 million (Previous year Rs. 106.2 million]]*
- On lease liabilities (refer note 41]	29.9	23.1
- On security deposits	3.8	3.4
Less: Amount included in the cost of qualifying assets	(91.1]	(158.8]
Interest expenses on financial liabilities measured at amortised cost	1,519.3	756.3
(b] Other borrowing costs	25.5	17.3
Total	1,544.8	773.6

* After adjusting reversal of interest on income tax of Rs. 1.0 million (Previous year interest on income tax of Rs. 3.1 million]

NOTE 31 - OTHER EXPENSES

Particulars	For the year ended March 31,2024		For the year ended March 31,2023
Stores and spares consumed		1,008.0	813.8
Packing materials consumed		2,340.2	2,131.7
Power and fuel (net of utilised by others] *		5,793.4	5,706.9
Water charges		148.6	151.9
Job charges		160.5	105.2
Rent (refer note 41]		19.1	20.1
Repairs and maintenance - Plant and equipment		169.8	159.5
- Buildings		146.6	72.4
- Others		205.2	169.0
Materials handling charges		222.2	182.1
Insurance charges		305.6	294.4
Rates and taxes		44.3	35.6
Commission on sales		1,009.6	924.8
Freight, clearing and octroi charges		1,358.6	997.9
Claims		59.0	144.9
Advertisement and business promotion		390.1	307.0
Auditors'' remuneration (refer note 34]		21.3	18.9
Travelling and conveyance		259.5	186.1
Postage and telephone		47.7	40.2
Legal and professional		1,142.8	757.6
Irrecoverable balances written off (net]	-		7.2
Less: Adjusted from provision for trade receivables and doubtful debts	-	-	(0.4] 6.8
Expected credit loss allowance on trade receivables and advances to vendors		61.8	-
Fair value loss on non-current investments		12.4	2.8
Charity and donation		42.2	60.8
Non current investments written off		0.6	-
Contribution to political parties**		70.0	2.5
Expenditure on corporate social responsibility (refer note 48]		135.2	128.3
Miscellaneous expenses		196.8	189.8
Total		15,371.1	13,611.0

* Net of Rs. 107.2 million (Previous year Rs. 107.2 million] subsidy received from Government. **Donated through electrol bonds to President of India(previous year donated to Bhartiya Janta Party].

NOTE 32 - CONTINGENT LIABILITIES (TO THE EXTENT NOT PROVIDED FOR)
Particulars	As at March 31,2024	As at March 31,2023
A Contingent liabilities Claims* (excluding claims by employees where amounts are not ascertainable) not acknowledged as debt: - Service tax	66.7	67.0
- Income tax	97.3	34.4
- Sales tax	-	0.7

A. Contingent Liabilities under service tax of Rs. 66.7 million (Previous year Rs. 67.0 million) represents:

i) Demand and penalty of Rs. 66.7 million (Previous year Rs. 66.7 million) for service tax under reverse charge basis on commission paid to non-executive Directors for the financial year 2014-15 to 2016-17. During the previous year, the Company had filed an appeal before CESTAT Ludhiana.

ii) Demand and penalty of Rs. Nil (Previous year Rs 0.3 million) for service tax under reverse charge basis on notice pay recovery for the financial year 2017-2018. During the current year, Order has been passed in favour of the company and case has been closed.

B. Contingent liabilities under Income Tax Act, 1961 of Rs. 97.3 million (Previous year Rs. 34.4 million) include:

(i) Rs. 6.1 million (Previous year Rs. 6.1 million) being penalties under Section 271(1)(c) of Income Tax Act, 1961 levied for assessment years 2004-2005 and 2006-2007.

(ii) Other disputed demands of Rs. 91.2 million pertaining to assessment year 2015-2016, 2016-2017, 2017-18 , 2019-2020, 2020-21 , 2021-22, 2022-23 & 2023-24 (Previous year Rs. 28.3 million pertaining to assessment year , 2015-16, 2016-17, and 2019-2020).

*These matters are subject to legal proceedings in the ordinary course of business. The Company has assessed that it is only possible, but not probable, that

outflow of economic resources will be required.

C. There are numerous interpretative issues relating to the Supreme Court (SC) judgement on PF dated 28th February, 2019. As a matter of caution, the Company has applied the judgement on a prospective basis from the date of the SC order. The Company will update its provision for the period prior to the Supreme Court judgement, on receiving further clarity on the subject.

NOTE 33 - COMMITMENTS

	As at	As at
Particulars	March 31,2024	March 31,2023
a) Estimated amount of contracts remaining to be executed on capital account	571.8	2,929.1
(net of advances)
b) For lease commitments please refer note 41 c) Other commitments #

# The Company has other commitments for purchase/sale orders which are issued after considering requirements as per the operating cycle for purchase/sale of goods and services, and employee benefits. The Company does not have any long term commitment or material non cancellable contractual commitments/ contracts which might have a material impact on the standalone Ind AS financial statements of the Company.

NOTE 35 - EMPLOYEE BENEFITS

a) Defined contribution plans

The Company makes contribution towards employees'' provident fund scheme. Under the scheme, the Company is required to contribute a specified percentage of salary, as specified in the rules of the scheme. The Company has recognised Rs. 343.6 million during the year (Previous year Rs. 264.8 million) as expense towards contribution to this plan. An amount of Rs. 6.8 million (Previous year Rs. 9.1 million) has been included under property, plant and equipment / capital work in progress. Further amount of Rs. 0.2 million (Previous year Rs. 0.3 million) and Rs. Nil (Previous year Rs. 0.1 million) has been reimbursed under Deen Dayal Upadhay Gramin Kaushal Yojna and Scheme for Capacity Building in Textile Sector (Samarth Scheme) respectively.

b) Defined benefit plans

Gratuity scheme

The Company has a defined gratuity plan (funded) and the gratuity plan is governed by The Payment of Gratuity Act 1972 (“Act"). Under the Act, employees who have completed five years of service are entitled for gratuity benefit of 15 days salary for each completed year of service or part thereof in excess of six months. The amount of benefit depends on respective employee''s salary, the years of employment and retirement age of the employee and the gratuity benefit is payable on termination/retirement of the employee. There is no maximum limit for the payment of gratuity benefit. The present value of obligation is determined based on an actuarial valuation as at the reporting date using the Projected Unit Credit Method.

The fund has the form of an irrevocable trust and it is governed by Board of Trustees. The Board of trustees is responsible for the administration of the plan assets and for the definition of investment strategy. The scheme is funded with qualifying insurance policies. The Company is contributing to trust towards the payment of premium of such gratuity schemes.

(VII) Actuarial risks

Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are detailed below:

Interest 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.

Salary Inflation risk

Higher than expected increases in salary will increase the defined benefit obligation.

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.

The sensitivity analysis presented above may not be representative of the actual changes in the defined benefit obligations as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumption may be correlated.

Furthermore, in presenting the above sensitivity analysis the present value of the defined benefit obligations has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognised in the standalone Ind AS financial statements.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

The sensitivity analysis above have been determined based on reasonably possible changes of the respective assumption occurring at the end of the reporting period, while holding all other assumptions constant.

NOTE 40 - SEGMENT INFORMATION

I Segment accounting policies:

a. Product and Services from which reportable segment derive their revenues (Primary Business Segments)

Based on the nature and class of product and services , their customers and assessment of differential risks and returns and financial reporting results reviewed by Chief Operating Decision Maker (CODM) , the Company has identified the following business segments which comprises of.

- Yarn

- Towel

- Bedsheets

- Paper and Chemicals

b. Geographical segments (secondary business segments)

The geographical segments considered and reviewed by Chief Operating Decision Maker for disclosure are based on markets, broadly as under:

Ind ia USA

Rest of the world

c. Segment accounting policies

Segment accounting policies: In addition to the significant accounting policies applicable to the business segment as set out in note 2, the accounting policies in relation to segment accounting are as under:

i. Segment assets and liabilities:

Segment assets include all operating assets used by a segment and consist principally of cash, debtors, inventories, right of use assets and property, plant and equipment including capital work in progress, net of allowances and provisions, which are reported as direct offset in the balance sheet. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities.

ii Segment revenue and expenses:

Joint revenue and expenses of segments are allocated amongst them on reasonable basis. All other segment revenue and expenses are directly attributable to the segments.

iii Inter segment sales:

Inter segment sales are accounted for at cost plus appropriate margin (transfer price) and are eliminated in consolidation.

iv Segment results :

Segment results represent the profit before tax earned by each segment without allocation of central administration costs, other non operating income as well as finance costs. Operating profit amounts are evaluated regularly by the Chief Operating Decision Maker in deciding how to allocate resources and in assessing performance.

NOTE 41 - LEASES

The Company has Lease contracts for Land, office premises, guest houses and factory premises (including plant and equipment). Leases of office premises, guest houses and factory premises (including plant and equipment) generally have lease terms ranging from 11 months to 20 years and leases of lands generally have lease terms between 30-99 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.

The Company also has certain leases of office premises and guest houses with lease terms of 12 months or less. The Company applies the ''short-term lease'' recognition exemptions for these leases.

For maturity analysis of lease liability, refer note 45 Financial risk management framework and policies under maturities of financial liabilities.

The Company had total cash outflows for leases of Rs. 84.3 million (previous year: Rs. 65.1 million). There are no future cash outflows relating to leases that have not yet commenced.

There are no leases having variable lease payments. The Company has not entered into any residual value contracts during the year. There are no sale and leaseback transactions during the year.

Extension and termination options are included in a number of leases. These are used to maximise operational flexibility in terms of managing the assets used in the Company''s operations. The majority of extension and termination options held are exercisable only by the Company and not by the respective lessor.

Payments associated with short-term leases are recognised on a straight-line basis as an expense in the Statement of Profit and Loss. Short-term leases are leases with a lease term of 12 months or less. The Company did not have any leases impacted by Covid-19 related rent concession amendment.

NOTE 43 -EMPLOYEES'' STOCK OPTION PLANS

The Board of Directors and the Shareholders of the Company had approved a Scheme called as “Trident Limited Employee Stock Options Scheme - 2020 (“ ESOS Scheme”) and “Trident Limited Employee Stock Purchase Scheme - 2020“ (“ ESPS Scheme”) in their meeting held on July 9, 2020 and May 16, 2020 respectively. Pursuant to the ESOS Scheme, the Company has constituted Trident Limited Employees Welfare Trust (''Trust'') to acquire, hold and allocate/transfer equity shares of the Company to eligible employees (as defined in the ESOS and ESPS scheme) from time to time on the terms and conditions specified under the ESOS Scheme and ESPS Scheme.

The said trust had purchased, during the financial year 2020-21, Company''s equity shares aggregated to 100,000,000 equity shares from the secondary open market at cost of Rs. 7.50 per share for which the Company had given loan to trust amounting to Rs. 751.0 million. The financial statements of the Trust have been included in the standalone Ind AS financial statements of the Company in accordance with the requirements of Ind AS and cost of such treasury shares has been presented as a deduction in other equity. Such number of equity shares (which are lying with trust) have been reduced while computing basic and diluted earnings per share.

(A) Trident Employees Stock Options Scheme, 2020

The Company had granted 66,00,000 stock options under the ESOS Scheme on November 12, 2022. Each option granted and vested under the Scheme shall entitle to the holder to acquire 1 equity share of Re. 1 each.

Based on various judicial prouncements and opinion obtained by the Company from experts, the Company has taken allowance of share based payment expense while computing income tax provision for the current year.

During the previous year, nomination and remuneration committee (“NRC") has approved the winding-up of Trident Limited Employee Stock Purchase Scheme - 2020 and approved the excess monies or shares remaining with the Trust after meeting all the obligations, if any, to be utilised for repayment of loan to Trident Limited. Accordingly, during the previous year, Trust has sold 18,293,707 shares and proceeds from transfer of shares has been utilised for the repayment of loan to the Company.

During the current year, the Company has obtained approval of shareholders of the Company for implementation of (I) Trident Limited General Employee Benefits Scheme - 2023 and (ii) utilisation of proceeds from sale of unappropriated 62,328,640 Equity Shares from Trident Limited Employee Stock Purchase Scheme - 2020, utilisation of excess funds lying with the Trust and funds which Trust may receive from various sources in future for Trident Limited General Employee Benefits Scheme - 2023.

NOTE 45 - FINANCIAL INSTRUMENTS

Capital management

For the purpose of Company''s capital management, capital includes issued equity capital and alt reserves attributable to equity holders of the Company.

The Company''s capital management objectives are:

- to ensure the Company''s ability to continue as a going concern

- to provide an adequate return to shareholders by pricing products and services commensurately with the level of risk.

The Company manages capital risk in order to maximise shareholders'' profit by maintaining sound/optimal capital structure through monitoring of financial ratios, such as net debt-to-equity ratio on a monthly basis and implements capital structure improvement plan when necessary. There is no change in the overall capital risk management strategy of the Company compared to last year.

Refer note 56 for ''Debt-to-equity ratio as of March 31,2024 and March 31, 2023

Fair values and its categories:

The management assessed that fair value of trade receivables, cash and cash equivalents, other bank balances, loans, other current financial assets (except derivative financial assets), short term borrowings (excluding current maturities of long term borrowings), trade payables and other current financial liabilities (except derivative financial liabilities) approximate their carrying amounts largely due to short-term maturities of these instruments.

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.

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

Level 1: ''Quoted prices in an active market: This level of hierarchy includes financial instruments that are measured by reference to quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: ''Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable. This level of hierarchy include Company''s over-the-counter (OTC) derivative contracts and mutual funds.

Level 3: Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

Financial Risk Management Framework

The Company''s principal financial liabilities, other than derivatives, comprise loans and 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 and other receivables, receivables from government authorities, security deposits and cash and cash equivalents that derive directly from its operations. The Company also holds investments and enters in to derivative transactions.

The Company''s corporate treasury function provides services to the business, co-ordinates access to domestic and international financial markets, monitors and manages the financial risks relating to the operations of the Company through internal risk reports which analyse exposures by degree and magnitude of risks. These risks include market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

The Company seeks to minimise the effects of these risks by using derivative financial instruments to hedge risk exposures. The Company does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes.

The Chief financial officer reports quarterly to the Board of Directors of the Company for monitoring risks and reviewing policies implemented to mitigate risk exposures.

Credit risk

Credit risk arises when a counterparty defaults on its contractual obligations to pay resulting in financial loss to the Company. The Company has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults. The Company has also taken export credit insurance for mitigation of export credit risk for certain parties.

The maximum exposure to the credit risk at the reporting date is primarily from trade receivables amounting to Rs. 4,137.2 million and Rs. 2,720.2 million as of March 31,2024 and March 31,2023, respectively. Trade receivables consist of a large number of customers, spread across diverse industries and geographical areas. Credit risk has always been managed by the Company through credit approvals, establishing credit limits and continuously monitoring the credit worthiness of customers to which the Company grants credit terms in the normal course of business and by way of taking letter of credit, credit insurance against export receivables.

Credit Risk Exposure

The Company has used a practical expedient by computing the expected loss allowance for trade receivables based on historical credit loss experience and adjustments for forward looking information

Liquidity risk

(i) Liquidity risk management

The Company''s objective is to maintain optimum levels of liquidity to meet its cash and collateral requirements at all times.

The Chief Financial Officer of the Company is responsible for liquidity risk management and the Company has established an appropriate liquidity risk management framework for the management of the Company''s short, medium and long-term funding and liquidity management requirements. Liquidity risk is managed by adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities. The Chief Financial Officer reports the same to the Board of Directors on quarterly basis.

(ii) Maturities of financial liabilities

The following tables detail the Company''s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The amount disclosed in the tables have been drawn up based on the undiscounted contractual cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The tables include both interest and principal cash flows.

Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk: currency risk and interest rate risk. Financial instruments affected by market risk includes loan and borrowings, lease liabilities and derivative financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return. The Company uses derivatives to manage market risks. Derivatives are only used for economic hedging purposes and not as speculative investments. All such transactions are carried out within the guidelines set by the Board of Directors and Risk Management Committee.

There has been no significant changes to the Company''s exposure to market risk or the methods in which they are managed or measured.

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 undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise. The Company''s exposure to currency risk relates primarily to the Company''s operating activities when transactions are denominated in a different currency from the Company''s functional currency.

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

For the year ended March 31, 2024, every 1 percent depreciation/appreciation in the exchange rate against USD, might have affected the Company''s incremental margins (profit as a percentage to revenue) approximately by 0.50%. The Company''s exposure to foreign currency changes for all other currencies is not material.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s debt obligations with floating interest rates. The borrowings (excluding non convertible debentures) as at March 31,2024 is Rs. 20,608.1 million (previous year Rs. 13,491.1 million) which are interest bearing and interest rates are variable.

Interest rate sensitivity

For the year ended March 31, 2024, every 1 percentage increase/decrease in weighted average bank interest rate might have affected the Company''s incremental margins (profit as a percentage to revenue) approximately by 0.25% (previous year 0.23%).

Price risk

The Company''s investments in other funds are susceptible to market price risk arising from uncertainties about future values of the investment securities. The Company manages the price risk through diversification and by placing limits on individual and total equity instruments. Reports on the portfolio are submitted to the Company''s senior management on a regular basis.

At the reporting date, the exposure in other funds is Rs. 487.9 million (previous year Rs. 3.7 million). A decrease or increase in NAV of 5% could have an impact of approximately of Rs. 24.4 million (previous year Rs. 0.2 million) on the profit or loss.

Derivatives not designated as hedging instruments

The Company uses forward currency contracts to hedge its foreign currency risks. Derivative contracts not designated by management as hedging instruments are initially recognised at fair value on the date on which a derivative contract is entered into and are subsequently re-measured at fair value on each reporting date. Such contracts are entered into for periods consistent with exposure of the underlying transactions.

Derivatives designated as hedging instruments

The Company enters into hedging instruments in accordance with policies as approved by the Board of Directors with written principles which is consistent with the risk management strategy of the Company.

Cash flow hedges

Foreign currency risk

Foreign exchange forward contracts are designated as hedging instruments in cash flow hedges of forecasted hedged items in US dollar. These forecast transactions are highly probable.

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

The critical terms of the foreign currency forward contracts match the terms of the expected highly probable forecast sale transactions. As a result, no hedge ineffectiveness arises requiring recognition through profit or loss.

The cash flow hedges of the forecasted sale transactions during the year ended 31 March 2024 were assessed to be highly effective and unrealised gain of Rs. 49.2 million (previous year Rs: 13.9 million) with a deferred tax charge of Rs. 12.4 million (previous year Rs. 3.5 million) relating to the hedging instruments, is included in OCI.

Valuation Technique

The Parent Company enters into derivative financial instruments with various counterparties, principally banks and financial institutions with investment grade credit ratings. Foreign exchange forward contracts are valued using valuation techniques, which employs the use of market observable inputs. The most frequently applied valuation techniques include forward pricing models, using present value calculations. Where quoted market prices are not available, fair values are based on management''s best estimates, which are arrived at by the reference to market prices.

*During the current year, TGCL had converted its 28,18,500 Compulsorily Convertible Debentures (''CCD'') having face value of Rs. 60/- per CCD into equity shares of Re. 1/- at a premium of Rs. 59/- per equity share based on approval by the Board of Directors in the meeting held on June 6, 2023 which had resulted in change of shareholding of the Company in TGCL from 100% to 63.95%.

Further during the current year, the Company had sold its entire stake of 63.95% in TGCL on September 14, 2023.

During the previous year, the equity shares of the TGCL had been sub-divided from existing face value of Rs 10 per equity share to face value of Re 1 per equity share based on approval of shareholders of TGCL in its Extra ordinary General Meeting held on November 2, 2022.

**During the previous year, the Company had acquired THTL on December 1, 2022 which holds 12,250 (24.5%) equity shares of TGI. Pursuant to the acquisition of THTL, the Company holds 73.5% equity shares of TGI (directly and indirectly) and accordingly, TGI had become a subsidiary of the Company w.e.f. December 1, 2022.

During the current year, THTL has incorporated a wholly owned subsidiary Trident Global B.V. in Netherlands on June 15, 2023.

***During the current year, name of the subsidiaries of the Company, Trident Innovations Limited and Trident Home Decor Limited have been removed by the Register of Companies based on application under Section 248 (2) of the Companies Act, 2013 . The removal of name of these subsidiaries by the Register of Companies does not have any major implication or material impact on the operations of the Company.

On account of above, the Company has written off the investments in the said subsidiaries.

NOTE 50 - (a) During the year ended March 31,2022, Company had accrued the benefits under the aforesaid schemes amounting to Rs. 2,844.1 million (net of discount of Rs. 579.3 million). Due to Lower realization of e-Scrips (received/receivable under RoSCTL and RoDTEP schemes), the Company had reduced the value of such export benefits by the amount of prevailing discount on e-Scrips amounting to Rs. 392.5 million on outstanding e-Scrips as at March 31,2022.

However, due to favourable realization of e-Scrips (received/receivable under RoSCTL and RoDTEP schemes) during the previous year, revenue from operations for the year ended March 31, 2023 includes Rs. 228.6 million, being the amount of additional realisation of e-Scrips outstanding as on March 31, 2022.

*During the current year, one of the erstwhile subsidiary of the Company, TGCL had converted its 28,18,500 Compulsorily Convertible Debentures (''CCD'') having face value of Rs. 60/- per CCD into equity shares of Re. 1/- at a premium of Rs. 59/- per equity share based on approval by the Board of Directors in the meeting held on June 6, 2023 which had resulted in change of shareholding of the Company in TGCL from 100% to 63.95%.

Further during the current year, the Company had sold its entire stake of 63.95% in TGCL on September 14, 2023.

During the previous year, the equity shares of the TGCL had been sub-divided from existing face value of Rs 10 per equity share to face value of Re 1 per equity share based on approval of shareholders of TGCL in its Extra ordinary General Meeting held on November 2, 2022.

**During the current year, name of the subsidiaries of the Company, Trident Innovations Limited and Trident Home Decor Limited have been removed by the Register of Companies based on application under Section 248 (2) of the Companies Act, 2013 . The removal of name of these subsidiaries by the Register of Companies does not have any major implication or material impact on the operations of the Company.

***During the previous year, the Company had acquired THTL on December 1, 2022 which holds 12,250 (24.5%) equity shares of TGI. Pursuant to the acquisition of THTL, the Company holds 73.5% equity shares of TGI (directly and indirectly) and accordingly, TGI had become a subsidiary of the Company w.e.f. December 1, 2022.

NOTE 52 - The Company has used accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software, except that audit trail feature is not enabled at the database level insofar as it relates to SAP accounting software. Further no instance of audit trail feature being tampered with was noted in respect of accounting software.

NOTE 53- 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. However, the date on which the Code will come into effect has not been notified. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period when the Code becomes effective.

NOTE 54- D uring the financial years 2003-04 and 2004-05, the Company had granted loans to one of its overseas subsidiary company namely Trident Global Inc (“TGI") for business purposes. Keeping in view the financial condition of TGI and as a matter of prudence, the Company, during the financial year 2005-06, had written-off these loans amounting to USD$ 183,000 (INR Rs 8.1 million) During the current financial year, with the improvement in performance of TGI, the Company has reinstated the earlier written-off loan amount alongwith accrued interest aggregating to USD 2,38,018 (INR Rs 16.5 million). The Company has further accrued the interest on above loans till the year end and based on agreement the Company will realise the loan amount alongwith interest by June 30, 2024.

NOTE 55 - Other Statutory Information

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

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

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

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

(v) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), 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(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 does not have any such transaction which is not recorded in the books of account that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961

NOTE 56 - In the month of October 2023, the Income Tax Department (''the department'') conducted a search under Section 132 of the Income Tax Act, 1961 at certain locations of Company including its manufacturing and Indian subsidiaries and residence of few of its employees/key managerial personnel. During the search proceedings, the Company provided necessary information and responses to the depart-ment. Also, the department has taken certain documents, few laptops and data backups for further in-vestigation. The business and operations of the Company continued without any disruptions and no demands have been raised on the Company and its Indian subsidiaries as of date. Based on the fore-going and having regard to the matters of inquiry during the search proceedings stated above, man-agement is of the view that no material adjustments are required to these Standalone Ind AS Financial Statements.

Note 60- One of the erstwhile subsidiary of the Company, Trident Global Corp Limited (TGCL), had converted its 28,18,500 Compulsorily Convertible Debentures (''CCD'') having face value of INR 60/- per CCD into equity shares of INR 1/- at a premium of INR 59/- per equity share based on approval by the Board of Directors in the meeting held on June 6, 2023 which had resulted in change of shareholding of the Company in TGCL from 100% to 63.95%.

Further, during the current year, the Company had sold its entire stake of 63.95% in TGCL on September 14, 2023. The Company had recognised gain of Rs 360.5 million. The Company has presented above profit or loss on the sale of said investment, as an exceptional item in the Standalone Ind AS Financial Statements as at and for the year ended March 31, 2024.

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Mar 31, 2023

a) Non Convertible debentures

*The non-convertible debentures are secured against pledge of receipt of bank deposit of Rs. 275.0 million. (refer note 5 and note 42-I(B))

#The non-convertible debentures were secured by way of first ranking pari-passu charge by way of mortgage (shared between the Debentures Trustee and Existing Lenders) on the mortgaged properties, first ranking pari-passu charge by way of hypothecation (shared between the Debentures Trustee and Existing Lenders) on the movable fixed assets and second ranking pari-passu charge by way of hypothecation (as shared between the Debentures Trustee and the Existing Lenders) on the hypothecated assets (excluding the moveable fixed assets) of the Company as defined in trust deed.

As per debenture trustee deed, the Debenture holder had the right to either reset the interest rate type from fixed to floating and to increase the effective rate of interest on the NCD w.e.f. November 3, 2022 or in the event, the same is not acceptable to the Company, the put option would be deemed to be exercised by the Debenture Holder and the Company had to repay the entire outstanding along with all dues payable to Debenture Holder on November 3, 2022.

During the current year, the Debenture holder of the Company has requested to increase the effective rate of interest on the NCD w.e.f. November 3, 2022. However the Company on the basis of approval of the Financial Management Committee has exercised the put option and accordingly the Company has repaid the entire outstanding amount of NCDs on November 2, 2022. (refer note 42-II (B)

b) Term loans

Term loans from banks are secured by way of equitable mortgage created or to be created on all the present and future immovable properties including land, buildings, structures, all plant and equipment attached thereon of the Company related to the specific capital project completed/in progress and hypothecation of all the movable properties including movable machinery, spares, tools and accessories, etc., present and future, subject to prior charges created and / or to be created in favour of the Company''s bankers on stocks of raw materials, semi finished and finished goods, consumable stores and other movable assets excluding vehicles specifically hypothecated against vehicle loans, as may be required for working capital requirements in the ordinary course of business. The mortgages and charges referred to above are pari-passu among the lenders. (refer note 42-I(A) and 42-II (A)). The amount disclosed as above is net of Current maturities of long-term debts - secured of Rs. 179.4 million (Previous year Rs. 163.6 million).

The interest rates range from 6.25% to 9.80% per annum (Previous year 6.65% to 8.80% per annum) before Interest subsidy under Technology Upgradation Fund Scheme from State Government of Madhya Pradesh.

c) Vehicles loans

Vehicle loans were secured by hypothecation of vehicles acquired against such loans (refer note 42(C) for repayment terms).The amount disclosed as above is net of Current maturities of long-term debts - secured of Rs. Nil (Previous year Rs. 5.0 million).

The interest rates range from Nil (Previous year 7.40% to 8.80% per annum).

For the current maturities of long-term borrowings, refer note 18 short term borrowings.

Cash credit/export packing credit/working capital loans from banks

Cash credit/export packing credit/working capital loans from banks are secured by hypothecation of raw materials, semi finished and finished goods, consumable stores, other movable assets excluding vehicles specifically hypothecated against vehicle loans and book debts, present and future, of the Company.

The interest rates for cash credit/export packing credit/working capital loans from banks range from 4.95% to 8.50% (Previous year 4.75% to 7.30% per annum) before subvention.

The Company has been sanctioned working capital limits from banks during the year on the basis of security of current assets of the Company. The revised quarterly returns/statements filed by the Company for each quarter with such banks are in agreement with the books of accounts of the Company.

A. Contingent Liabilities under service tax of Rs. 67.0 million (Previous year Rs. 66.7 million) represents:

i) Demand and penalty of Rs. 66.7 million (Previous year Rs. 66.7 million) for service tax under reverse charge basis on commission paid to non-executive Directors for the financial year 2014-15 to 2016-17. During the previous year, the Company had filed an appeal before CESTAT Ludhiana.

ii) Demand and penalty of Rs. 0.3 million (Previous year Rs Nil) for service tax under reverse charge basis on notice pay recovery for the financial year 2017-2018. During the current year, the Company has filed an appeal against the same.

B. Contingent liabilities under Income Tax Act, 1961 of Rs. 34.4 million (Previous year Rs.23.0 million) include:

(i) Rs. 6.1 million (Previous year Rs. 6.1 million) being penalties under Section 271(1)(c) of Income Tax Act, 1961 levied for

assessment years 2004-2005 and 2006-2007.

(ii) Other disputed demands of Rs. 28.30 million pertaining to assessment year 2015-2016, 2016-2017 and 2019-2020 (Previous year Rs. 16.9 million pertaining to assessment year 2013 -14, 2015-16, 2016-17,2018-19 and 2019-2020).

* These matters are subject to legal proceedings in the ordinary course of business. In the opinion of the management, legal proceedings when

ultimately concluded will not have a material effect on the results of operations or financial position of the Company. Based on the favourable orders in

similar matters and based on the opinion of legal counsel of the Company, the Company has a good chance of winning the cases.

C. There are numerous interpretative issues relating to the Supreme Court (SC) judgement on PF dated 28th February, 2019. As a matter of caution, the Company has applied the judgement on a prospective basis from the date of the SC order. The Company will update its provision for the period prior to the Supreme Court judgement, on receiving further clarity on the subject.

NOTE 35 - EMPLOYEE BENEFITS

a) Defined contribution plans

The Company makes contribution towards employees'' provident fund scheme. Under the scheme, the Company is required to contribute a specified percentage of salary, as specified in the rules of the scheme. The Company has recognised Rs. 264.8 million during the year (Previous year Rs. 286.7 million) as expense towards contribution to this plan. An amount of Rs. 9.1 million (Previous year Rs. 2.6 million) has been included under Property, plant and equipment / Capital work in progress. Further amount of Rs. 0.3 million (Previous year Rs. 0.6 million) and Rs. 0.1 million (Previous year Rs. 0.3 million) has been reimbursed under Deen Dayal Upadhay Gramin Kaushal Yojna and Scheme for Capacity Building in Textile Sector (Samarth Scheme) respectively.

b) Defined benefit plans

Gratuity scheme

The Company has a defined gratuity plan (funded) and the Gratuity plan is governed by The Payment of Gratuity Act 1972 (“Act"). Under the Act, employees who have completed five years of service are entitled for gratuity benefit of 15 days salary for each completed year of service or part thereof in excess of six months. The amount of benefit depends on respective employee''s salary, the years of employment and retirement age of the employee and the gratuity benefit is payable on termination/retirement of the employee. There is no maximum limit for the payment of gratuity benefit. The present value of obligation is determined based on an actuarial valuation as at the reporting date using the Projected Unit Credit Method.

The fund has the form of an irrevocable trust and it is governed by Board of Trustees. The Board of trustees is responsible for the administration of the plan assets and for the definition of investment strategy. The scheme is funded with qualifying insurance policies. The Company is contributing to trusts towards the payment of premium of such gratuity schemes

(VII) Actuarial risks

Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are detailed below:

Interest 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.

Salary Inflation risk

Higher than expected increases in salary will increase the defined benefit obligation.

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.

NOTE 40 - SEGMENT INFORMATION

I Segment accounting policies:

a. Product and Services from which reportable segment derive their revenues (Primary Business Segments)

Upto the previous year, the Company had identified two business segments namely Textiles (Yarn, Towel, Bedsheets) and Paper and Chemical. During the current year, the Board of Directors has reviewed the Textiles Segment and considering the nature and class of product included therein, has decided to present Yarn, Towel and Bedsheets as three separate business segments instead of one Textiles business segment on the basis that such segmentation would be more useful to users of the Company''s financial statements in terms of the requirements of Ind AS 108.

Accordingly, due to change in composition of reportable segments, as stated above, the corresponding items of segment information for previous year have been restated and presented in these standalone Ind AS financial statements. The Company has identified the following business segments which comprises of:

- Yarn

- Towel

- Bedsheets

- Paper and Chemicals

b. Geographical segments (secondary business segments)

The geographical segments considered and reviewed by Chief Operating Decision Maker for disclosure are based on markets, broadly as under:

India

USA

Rest of the world

c. Segment accounting policies

Segment accounting policies: In addition to the significant accounting policies applicable to the business segment as set out in note 2, the accounting policies in relation to segment accounting are as under:

i. Segment assets and liabilities:

Segment assets include all operating assets used by a segment and consist principally of cash, debtors, inventories, right of use assets and property, plant and equipment including capital work in progress, net of allowances and provisions, which are reported as direct offset in the balance sheet. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities.

ii Segment revenue and expenses:

Joint revenue and expenses of segments are allocated amongst them on reasonable basis. All other segment revenue and expenses are directly attributable to the segments.

iii Inter segment sales:

Inter segment sales are accounted for at cost plus appropriate margin (transfer price) and are eliminated in consolidation.

iv Segment results :

Segment results represent the profit before tax earned by each segment without allocation of central administration costs, other non operating income as well as finance costs. Operating profit amounts are evaluated regularly by the Chief Operating Decision Maker in deciding how to allocate resources and in assessing performance.

NOTE 41 - LEASES

The Company has Lease contracts for Land, office premises, guest houses and factory premises (including plant and equipment). Leases of office premises, guest houses and factory premises (including plant and equipment) generally have lease terms ranging from 11 months to 20 years and leases of lands generally have lease terms between 30-99 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.

The Company also has certain leases of office premises and guest houses with lease terms of 12 months or less. The Company applies

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For maturity analysis of lease liability, refer note 45 Financial risk management framework and policies under maturities of financial liabilities.

The Company had total cash outflows for leases of Rs. 65.1 million (previous year: Rs. 56.6 million). There are no future cash outflows relating to leases that have not yet commenced.

There are no leases having variable lease payments. The Company has not entered into any residual value contracts during the year. There are no sale and leaseback transactions during the year.

Extension and termination options are included in a number of leases. These are used to maximise operational flexibility in terms of managing the assets used in the Company''s operations. The majority of extension and termination options held are exercisable only by the Company and not by the respective lessor.

Payments associated with short-term leases are recognised on a straight-line basis as an expense in the Statement of Profit and Loss. Short-term leases are leases with a lease term of 12 months or less. The Company did not have any leases impacted by Covid-19 related rent concession amendment.

NOTE 43 - EMPLOYEES‘ STOCK OPTION PLANS

The Board of Directors and the Shareholders of the Company have approved a Scheme called as “Trident Limited Employee Stock Options Scheme - 2020 (“ ESOS Scheme”) and “Trident Limited Employee Stock Purchase Scheme - 2020“ (“ ESPS Scheme”) in their meeting held on July 9, 2020 and May 16, 2020 respectively. Pursuant to the ESOS Scheme, the Company has constituted Trident Limited Employees Welfare Trust (''Trust'') to acquire, hold and allocate/transfer equity shares of the Company to eligible employees (as defined in the ESOS and ESPS scheme) from time to time on the terms and conditions specified under the ESOS Scheme and ESPS Scheme.

The said trust had purchased, during the financial year 2020-21, Company''s equity shares aggregated to 100,000,000 equity shares from the secondary open market at cost of Rs. 7.50 per share for which the Company had given loan to trust amounting to Rs. 751.0 million. The financial statements of the Trust have been included in the standalone Ind AS financial statements of the Company in accordance with the requirements of Ind AS and cost of such treasury shares has been presented as a deduction in other equity. Such number of equity shares (which are lying with trust) have been reduced while computing basic and diluted earnings per share.

(A) Trident Employees Stock Options Scheme, 2020

The Company had granted 66,00,000 stock options under the ESOS Scheme on November 12, 2022. Each option granted and vested under the Scheme shall entitle to the holder to acquire 1 equity share of Re. 1 each.

Based on various judicial prouncements and opinion obtained by the Company from experts, the Company has taken allowance of share based payment expense while computing income tax provision for the current year.

During the current year, nomination and remuneration committee (“NRC") has approved the winding-up of Trident Limited Employee Stock Purchase Scheme - 2020 and approved the excess monies or shares remaining with the Trust after meeting all the obligations, if any, to be utilised for repayment of loan to Trident Limited. Accordingly, during the current year, Trust has sold 18,293,707 shares and proceeds from transfer of shares has been utilised for the repayment of loan to the Company.

Based on approval of NRC, for remaining 62,328,640 Equity Shares, the Company is seeking approval of shareholders of the Company for implementation of Trident Limited General Employee Benefits Scheme - 2023 by transferring remaining shares from Trident Limited Employee Stock Purchase Scheme - 2020 to Trident Limited General Employee Benefits Scheme - 2023. The Company has also obtained expert opinion on compliance in this regard.

NOTE 45 - FINANCIAL INSTRUMENTS

Capital management

For the purpose of Company''s capital management, capital includes Issued equity capital and alt reserves attributable to equity holders of the Company.

The Company''s capital management objectives are:

- to ensure the Company''s ability to continue as a going concern

- to provide an adequate return to shareholders by pricing products and services commensurately with the level of risk."

The Company manages capital risk in order to maximize shareholders'' profit by maintaining sound/optimal capital structure through monitoring of financial ratios, such as net debt-to-equity ratio on a monthly basis and implements capital structure improvement plan when necessary. There is no change in the overall capital risk management strategy of the Company compared to last year.

The management assessed that fair value of trade receivables, cash and cash equivalents, other bank balances, other current financial assets (except derivative financial assets), short term borrowings, trade payables and other current financial liabilities (except derivative financial liabilities) approximate their carrying amounts largely due to short-term maturities of these instruments.

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.

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

Level 1: ''Quoted prices in an active market: This level of hierarchy includes financial instruments that are measured by reference to quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: ''Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable. This level of hierarchy include Company''s over-the-counter (OTC) derivative contracts and mutual funds.

Level 3: Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

Financial Risk Management Framework

The Company''s principal financial liabilities, other than derivatives, comprise loans and 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 and other receivables, receivables from government authorities, security deposits and cash and cash equivalents that derive directly from its operations. The Company also holds investments and enters in to derivative transactions.

The Company''s corporate treasury function provides services to the business, co-ordinates access to domestic and international financial markets, monitors and manages the financial risks relating to the operations of the Company through internal risk reports which analyse exposures by degree and magnitude of risks. These risks include market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

The Company seeks to minimise the effects of these risks by using derivative financial instruments to hedge risk exposures. The Company does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes.

The Chief financial officer reports quarterly to the Board of Directors of the Company for monitoring risks and reviewing policies implemented to mitigate risk exposures.

Credit risk

Credit risk arises when a counterparty defaults on its contractual obligations to pay resulting in financial loss to the Company. The Company has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults. The Company has also taken export credit insurance for mitigation of export credit risk for certain parties.

The maximum exposure to the credit risk at the reporting date is primarily from trade receivables amounting to Rs. 2,720.2 million and Rs. 5,285.3 million as of March 31,2023 and March 31, 2022, respectively. Trade receivables consist of a large number of customers, spread across diverse industries and geographical areas. Credit risk has always been managed by the Company through credit approvals, establishing credit limits and continuously monitoring the credit worthiness of customers to which the Company grants credit terms in the normal course of business and by way of taking credit insurance against export receivables.

(i) Liquidity risk management

The Company''s objective is to maintain optimum levels of liquidity to meet its cash and collateral requirements at all times.

The Chief Financial Officer of the Company is responsible for liquidity risk management and the Company has established an appropriate liquidity risk management framework for the management of the Company''s short, medium and long-term funding and liquidity management requirements. Liquidity risk is managed by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities. The Chief Financial Officer reports the same to the Board of Directors on quarterly basis."

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk: currency risk and interest rate risk. Financial instruments affected by market risk includes loan and borrowings, lease liabilities and derivative financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return. The Company uses derivatives to manage market risks. Derivatives are only used for economic hedging purposes and not as speculative investments. All such transactions are carried out within the guidelines set by the Board of Directors and Risk Management Committee.

There has been no significant changes to the Company''s exposure to market risk or the methods in which they are managed or measured.

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 undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise. The Company''s exposure to currency risk relates primarily to the Company''s operating activities when transactions are denominated in a different currency from the Company''s functional currency.

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

For the year ended March 31, 2023, every 1 percent depreciation/appreciation in the exchange rate against USD, might have affected the Company''s incremental margins (profit as a percentage to revenue) approximately by 0.43%. The Company''s exposure to foreign currency changes for all other currencies is not material.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s debt obligations with floating interest rates. The borrowings (excluding non convertible debentures) as at March 31, 2023 is Rs. 13,491.1 million (previous year Rs. 14,770.1 million) which are interest bearing and interest rates are variable.

Interest rate sensitivity

For the year ended March 31, 2023, every 1 percentage increase/decrease in weighted average bank interest rate might have affected the Company''s incremental margins (profit as a percentage to revenue) approximately by 0.23% (previous year 0.15%).

Price risk

The Company''s investments in other funds are susceptible to market price risk arising from uncertainties about future values of the investment securities. The Company manages the price risk through diversification and by placing limits on individual and total equity instruments. Reports on the portfolio are submitted to the Company''s senior management on a regular basis.

At the reporting date, the exposure in other funds is Rs.3.7 million (previous year Rs. 9.8 million). A decrease or increase in NAV of 5% could have an impact of approximately of Rs.0.2 million (previous year Rs. 0.5 million) on the profit or loss.

Derivatives not designated as hedging instruments

The Company uses forward currency contracts and option currency contracts to hedge its foreign currency risks. Derivative contracts not designated by management as hedging instruments are initially recognised at fair value on the date on which a derivative contract is entered into and are subsequently re-measured at fair value on each reporting date. Such contracts are entered into for periods consistent with exposure of the underlying transactions.

Derivatives designated as hedging instruments

The Company enters into hedging instruments in accordance with policies as approved by the Board of Directors with written principles which is consistent with the risk management strategy of the Company.

The critical terms of the foreign currency forward contracts match the terms of the expected highly probable forecast sale transactions. As a result, no hedge ineffectiveness arises requiring recognition through profit or loss.

The cash flow hedges of the forecasted sale transactions during the year ended March 31, 2023 were assessed to be highly effective and unrealised loss of Rs. 13.9 million (Previous year Rs. 119.9 million, with a deferred tax charge of Rs. 3.5 million (Previous year Rs. 30.2 million) relating to the hedging instruments, is included in other comprehensive income.

Valuation Technique

The Company enters into derivative financial instruments with various counterparties, principally banks and financial instiutions with investment grade credit ratings. Foreign exchange forward and option contracts are valued using valuation techniques, which employs the use of market observable inputs. The most frequently applied valuation techniques include forward pricing models, using present value calculations. Where quoted market prices are not available, fair values are based on management''s best estimates, which are arrived at by the reference to market prices.

(a) Pursuant to approval granted by Union Cabinet on July 14, 2021 (notified on August 13, 2021), for continuation of Rebate of State and Central taxes and Levies (RoSCTL) with the same rates as notified by Ministry of Textiles vide Notification dated March 08, 2019 on exports of Apparel/Garments and Made-ups, during the previous year, the Company had accrued the export benefits of RoSCTL of Rs. 579.3 million pertaining to the eligible export sales for the period from January 1,2021 to March 31,2021.

Further, the Central Government had also notified Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme Guidelines and Rates for other textile products vide Notification dated August 17, 2021. Accordingly, during the previous year, the Company had accrued the benefits under the aforesaid scheme amounting to Rs. 30.9 million on eligible export sales for the period from January 1,2021 to March 31 2021.

Hence, revenue from operations for the year ended March 31,2022 includes Rs. 610.2 million on standalone basis for the period from January 1,2021 to March 31, 2021.

(b) During the previous year, Company had accrued the benefits under the aforesaid schemes amounting to Rs. 2,844.1 million (net of discount of Rs. 579.3 million). Due to lower realization of e-Scrips (received/receivable under RoSCTL and RoDTEP schemes), the Company had reduced the value of such export benefits by the amount of prevailing discount on e-Scrips amounting to Rs. 392.5 million on outstanding e-Scrips as at March 31,2022.

Due to favourable realization of e-Scrips (received/receivable under RoSCTL and RoDTEP schemes) during the year, revenue from operations for the year ended March 31,2023 includes Rs. 228.6 million, being the amount of additional realisation of e-Scrips outstanding as on March 31, 2022.

NOTE 52

During the current year, the Company has acquired Trident Home Textiles Limited (''THTL'') on December 1, 2022 which holds 24.5% equity shares of Trident Global Inc. (''TGI'') (earlier associate of the Company). Pursuant to the acquisition of THTL, the Company holds 73.5% equity shares of TGI (directly and indirectly) and accordingly, TGI has become a subsidiary of the Company w.e.f. December 1, 2022. Further, during the current year, the Company has acquired 100% share of Trident Innovations Limited on July 22, 2022 and has subscribed for share capital in wholly owned subsidiary company Trident Home Decor Limited on June 22, 2022.

NOTE 53

On April 05, 2021, a major fire broke out in the Cotton warehouse located in the manufacturing facilities at Budhni, Madhya Pradesh, however the fire had not caused any disturbance in the day to day operations of the said facilities. The fire had resulted in major damage of stocks of cotton lying in the cotton warehouse and its building. During the previous year, the Company had received the insurance claim and accounted for loss on account of fire of H 73.5 million.

NOTE 54

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. However, the date on which the Code will come into effect has not been notified. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period when the Code becomes effective.

NOTE 55 - Other Statutory Information

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

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

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

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

(v) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), 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(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 does not have any such transaction which is not recorded in the books of account that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961

Notes :

1. The above statement also indicates performance and financial position of each of the Subsidiary and Associate Companies.

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Mar 31, 2022

1. AH tangible assets have been pledged to secure borrowings of the Company (refer note 16 and 18)

2. The amount of borrowing costs capitalised during the year is H 8.3 million (Previous year H 313.1 million) at the actual rate of interest on specific borrowings utilised and weighted average interest rate for general borrowings.

3. In accordance with Ind AS 101, the Company had carried out fair valuation of all its land on first time adoption as at April 01, 2015 consequent to which deemed cost of land was increased by H 7,905.2 million.

4. Capital work in progress includes goods in transit of H 203.1 million (Previous year H 6.6 million).

5*. Adjustments represent reversal of excess capital subsidies (refer note 54 to the Standalone Ind AS financial statements).

(b) Rights, preferences and restrictions attached to the equity shareholders:

The Company has only one class of equity shares having par value of H 1 per share (Previous year H 1 per share). Each shareholder is eligible for one vote per equity share held. In the event of liquidation of the Company, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding. The Company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

a) Non Convertible debentures

The Non-Convertible Debentures are secured by way of first ranking pari-passu charge by way of mortgage (shared between the Debentures Trustee and Existing Lenders) on the mortgaged properties, first ranking pari-passu charge by way of hypothecation (shared between the Debentures Trustee and Existing Lenders) on the movable fixed assets and second ranking pari-passu charge by way of hypothecation (as shared between the Debentures Trustee and the Existing Lenders) on the hypothecated Assets (excluding the moveable fixed assets) of the Company as defined in trust deed. (refer note 42-I(B) and 42-II (B)).

b) Term loans

Term loans from banks are secured by way of equitable mortgage created or to be created on all the present and future immovable properties including all land, buildings, structures, all plant and equipment attached thereon of the Company and hypothecation of all the movable properties including movable machinery, spares, tools and accessories, etc., present and future, subject to prior charges created and / or to be created in favour of the Company''s bankers on stocks of raw materials, semi finished and finished goods, consumable stores and other movable assets excluding vehicles specifically hypothecated against vehicle loans, as may be required for working capital requirements in the ordinary course of business. The mortgages and charges referred to above are pari-passu among the lenders including debentureholders to the extent stated in note (a) above. (refer note 42-I(A) and 42-II (A)).

The interest rates range from 6.65% to 8.80% per annum before Interest subsidies under TUFS from Central and State Governments.

c) Vehicles loans

Vehicle loans are secured by hypothecation of vehicles acquired against such loans (refer note 42(C) for repayment terms).

The interest rates range from 7.40% to 8.80% per annum.

For the current maturities of long-term borrowings, refer note 18 short term borrowings.

Cash credits/working capital loans

Cash credits/working capital loans are secured by hypothecation of raw materials, semi finished and finished goods, consumable stores, other movable assets excluding vehicles specifically hypothecated against vehicle loans and book debts, present and future, of the Company.

The interest rates for Cash credits/working capital loans from banks range from 4.75% to 7.30% per annum before subvention.

The interest rates for unsecured short term borrowings from banks and financial institutions range from 4.75% to 5.25% per annum.

The Company has been sanctioned working capital limits from banks during the year on the basis of security of current assets of the Company. The quarterly returns/statements filed by the Company with such banks are in agreement with the books of accounts of the Company.

The Reserve Bank of India vide its circular dated March 27, 2020 permitted the lenders to allow a moratorium for three months of EMI (Equated Monthly Instalments) incuding interest, falling due between March 01,2020 and May 31, 2020 (later extended by an additional three months up to August 31, 2020) for various categories of loans. The Company had availed the permitted moratorium for some of its borrowings and interest thereon falling due between March 01, 2020 and May 31, 2020. During the previous year, the Company had paid all its due EMI''s within the extended moratorium period.

A. Contingent Liability under Service tax represent demand and penalty of H 66.7 million (Previous year H 66.7 million) for service tax under reverse charge basis on commission and sitting fee paid to Non-executive Directors for the financial year 2014-15 to 201617. During the year, the Company has filed an appeal before CESTAT, Ludhiana.

B. Contingent liabilities under Income Tax Act, 1961 of H 23.0 million (Previous year H 9.6 million) include:

(i) H.6.1 million (Previous year H 6.1 million) being penalties under Section 271(1)(c) of Income Tax Act, 1961 levied for assessment years 2004-2005 and 2006-2007.

(ii) Other disputed demands of H 16.9 million pertaining to assessment year 2013 - 2014, 2015-2016, 2016-2017, 2018-2019 and 2019 2020 (Previous year H 3.5 million pertaining to assessment year 2013 - 2014, 2016-17 and 2019-2020) .

(iii) The Company has received an order under Section 143(3) of the Income Tax Act, 1961 (Act'') for the assessment year 20162017. The Assessing Officer ("AO") has made reduction in the amount of deduction claimed by the Company under Section 80IA of the Act amounting to H 1,244.2 million. There is no impact of AO order for the assessment year 2016 - 2017 since there were adjustment of brought forward losses and deduction u/s 80IA was not claimed. Further, during the current year, the Company has received similiar orders under Section 143(3) of the Income Tax Act, 1961 (Act'') for the assessment years 20172018 and 2018-2019, wherein AO has made reduction in the amount of deduction claimed by the Company under Section 80IA of the Act amounting to H 520.8 million and H 206.9 million respectively. There is no impact of the said order since the Company has already written off MAT credit entitlement of H 289.5 million in the assessment year 2020-2021. The Company has filed an appeal against the above said orders. The Company is assessing the consequential impact on deductions claimed under Section 80IA of the Act, 1961 for the assessment years 2019 - 2020.

* These matters are subject to legal proceedings in the ordinary course of business. In the opinion of the management, legal proceedings when ultimately concluded will not have a material effect on the results of operations or financial position of the Company. Based on the favourable orders in similar matters and based on the opinion of legal counsel of the Company, the Company has a good chance of winning the cases.

C. There are numerous interpretative issues relating to the Supreme Court (SC) judgement on PF dated 28th February, 2019. As a matter of caution, the Company has applied the judgement on a prospective basis from the date of the SC order. The Company will update its provision for the period prior to the Supreme Court judgement, on receiving further clarity on the subject.

NOTE 35 - EMPLOYEE BENEFITS a) Defined contribution plans

The Company makes contribution towards employees'' provident fund scheme. Under the scheme, the Company is required to contribute a specified percentage of salary, as specified in the rules of the scheme. The Company has recognized H 286.7 million during the year (Previous year H 240.1 million) as expense towards contribution to this plan. An amount of H 2.6 million (Previous year H 2.4 million) has been included under Property, plant and equipment / Capital work in progress. Further amount of H 0.6 million (Previous year H 0.4 million) and H 0.3 million (Previous year Nil) has been reimbursed under Deen Dayal Upadhay Gramin Kaushal Yojna and Scheme for Capacity Building in Textile Sector (Samarth Scheme) respectively.

b) Defined benefit plans

Gratuity scheme

The Company has a defined gratuity plan (Funded) and the Gratuity plan is governed by The Payment of Gratuity Act 1972 ("Act"). Under the Act, employees who have completed five years of service are entitled for gratuity benefit of 15 days salary for each completed year of service or part thereof in excess of six months. The amount of benefit depends on respective employee''s salary, the years of employment and retirement age of the employee and the gratuity benefit is payable on termination/retirement of the employee. There is no maximum limit for the payment of gratuity benefit. The present value of obligation is determined based on an actuarial valuation as at the reporting date using the Projected Unit Credit Method.

The fund has the form of an irrevocable trust and it is governed by Board of Trustees. The Board of trustees is responsible for the administration of the plan assets and for the definition of investment strategy. The scheme is funded with qualifying insurance policies. The Company is contributing to trusts towards the payment of premium of such gratuity schemes.

The following table sets out the details of defined benefit plan and the amounts recognised in the standalone Ind AS financial statements:

VII Actuarial risks

Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are detailed below: Interest 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.

Salary Inflation risk

Higher than expected increases in salary will increase the defined benefit obligation.

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.

The sensitivity analysis presented above may not be representative of the actual changes in the defined benefit obligations as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumption may be correlated.

Furthermore, in presenting the above sensitivity analysis the present value of the defined benefit obligations has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognised in the standalone Ind AS financial statements.

b) Defined benefit plans (Contd..)

VIII Sensitivity Analysis- Impact on defined benefit obligation (Contd..)

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

The sensitivity analysis above have been determined based on reasonably possible changes of the respective assumption occurring at the end of the reporting period, while holding all other assumptions constant.

NOTE 40 - SEGMENT INFORMATION

I Segment Accounting Policies:

a. Product and Services from which reportable segment derive their revenues (Primary Business Segments)

Based on the nature and class of product and services , their customers and assessment of differential risks and returns and financial reporting results reviewed by Chief Operating Decision Maker (CODM) , the Company has identified the following business segments which comprises of:

Textiles : Yarn, Towel, Bedsheets, Dyed Yarn manufacturing (Including utility services)

Paper and Chemical : Paper and Sulphuric Acid (Including utility services)

b. Geographical segments (Secondary Business Segments)

The geographical segments considered and reviewed by Chief Operating Decision Maker for disclosure are based on markets, broadly as under:

India

USA

Rest of the world

c. Segment accounting policies

Segment accounting policies: In addition to the significant accounting policies applicable to the business segment as set out in note 2, the accounting policies in relation to segment accounting are as under:

i. Segment assets and liabilities:

Segment assets include all operating assets used by a segment and consist principally of cash, debtors, inventories, Right of use assets and Property, Plant and Equipment including capital work in progress, net of allowances and provisions, which are reported as direct offset in the balance sheet. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities.

ii Segment revenue and expenses:

Joint revenue and expenses of segments are allocated amongst them on reasonable basis. All other segment revenue and expenses are directly attributable to the segments.

iii Inter segment sales:

Inter segment sales are accounted for at cost plus appropriate margin (transfer price) and are eliminated in consolidation.

iv Segment results :

Segment results represent the profit before tax earned by each segment without allocation of central administration costs, other non operating income as well as finance costs. Operating profit amounts are evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance.

NOTE 41 - LEASES AS LESSEE

The Company has lease contracts for various Land, office premises, guest houses and factory premises (including plant & equipment). Leases of office premises, guest houses and factory premises (including plant & equipment) generally have lease terms ranging from 11 months to 20 years and leases of lands generally have lease terms between 30-99 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.

The Company also has certain leases of office premises and guest houses with lease terms of 12 months or less. The Company applies the ‘short-term lease'' recognition exemptions for these leases.

For maturity analysis of lease liability, refer note 45 Financial risk management framework and policies under maturities of financial liabilities.

The Company had total cash outflows for leases of H 56.6 million (previous year: H 83.7 million). There are no future cash outflows relating to leases that have not yet commenced.

There are no leases having variable lease payments. The Company has not entered into any residual value contracts during the year. There are no sale and leaseback transactions during the year.

Extension and termination options are included in a number of leases. These are used to maximise operational flexibility in terms of managing the assets used in the Company''s operations. The majority of extension and termination options held are exercisable only by the Company and not by the respective lessor.

Payments associated with short-term leases are recognised on a straight-line basis as an expense in statement of profit and loss. Short-term leases are leases with a lease term of 12 months or less. The Company did not have any leases impacted by the Covid-19 related rent concession amendment.

NOTE 43 - EMPLOYEES ‘ STOCK OPTION PLANS

A. Trident Employees Stock Options Plan, 2007

The Compensation Committee of Board of Directors of the Company had granted options to the employees pursuant to Trident Employees Stock Options Plan 2007 (''the Plan'') on July 9, 2007 (Grant I) and July 23, 2009 (Grant II). These options were granted at H 17.55 and H 11.20 per option respectively, being the latest available closing market price prior to the date of grant of options in accordance with SEBI guidelines. The quoted price of share on grant and the exercise price of option is equal and therefore there is no impact on statement of profit and loss due to Employee Share-based options as the Company is following intrinsic value method.

The Company has not allotted any equity share (previous year Nil equity shares) to employees during the year under the Trident Employees Stock Options Plan, 2007. However, the disclosure is given since the Plan is live and the Company can grant further options under this Plan.

B. Trident Limited Employee Stock Purchase Scheme - 2020

The Board of Directors and the Shareholders of the Company have approved a Scheme called as "Trident Limited Employee Stock Purchase Scheme - 2020" ("Scheme") in their meeting held on May 16, 2020 and July 9, 2020 respectively. This scheme is effective from July 9, 2020. Pursuant to the Scheme, the Company has constituted Trident Limited Employees Welfare Trust (‘Trust'') to acquire, hold and allocate/transfer equity shares of the Company to eligible employees from time to time on the terms and conditions specified under the Scheme. However, no offer was made to eligible employees under the Scheme till March 31, 2021. The said trust had purchased, during the previous year, Company''s equity shares aggregated to 100,000,000 equity shares from the secondary open market at cost of H 7.50 per share. The financial statements of the Trust have been included in the standalone Ind AS financial statements of the Company in accordance with the requirements of Ind AS and cost of such treasury shares has been presented as a deduction in Other Equity. Such number of equity shares have been reduced while computing basic and diluted earnings per share.

Capital management

For the purpose of Company''s capital management, capital includes Issued Equity capital and all reserves attributable to equity holders of the Company.

The Company''s capital management objectives are:

- to ensure the Company''s ability to continue as a going concern

- to provide an adequate return to shareholders by pricing products and services commensurately with the level of risk.

The Company manages capital risk in order to maximize shareholders'' profit by maintaining sound/optimal capital structure through monitoring of financial ratios, such as net debt-to-equity ratio on a monthly basis and implements capital structure improvement plan when necessary. There is no change in the overall capital risk management strategy of the Company compared to last year.

Refer Note 58 for ''Debt-to-equity ratio as of March 31, 2022 and March 31, 2021

The management assessed that fair value of trade receivables, cash and cash equivalents, other bank balances, other current financial assets (except derivative financial assets), short term borrowings, trade payables and other current financial liabilities (except derivative financial liabilities) approximate their carrying amounts largely due to short-term maturities of these instruments.

Financial Risk Management Framework

The Company''s principal financial liabilities, other than derivatives, comprise loans and 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 and other receivables, receivables from government authorities, security deposits and cash and cash equivalents that derive directly from its operations. The Company also holds investments and enters in to derivative transactions.

The Company''s corporate treasury function provides services to the business, co-ordinates access to domestic and international financial markets, monitors and manages the financial risks relating to the operations of the Company through internal risk reports which analyse exposures by degree and magnitude of risks. These risks include market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

The Company seeks to minimise the effects of these risks by using derivative financial instruments to hedge risk exposures. The Company does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes.

The Corporate Treasury function reports quarterly to the Board of Directors of the Company for monitoring risks and reviewing policies implemented to mitigate risk exposures.

CREDIT RISK

Credit risk arises when a counterparty defaults on its contractual obligations to pay resulting in financial loss to the Company. The Company has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults. The Company has also taken export credit insurance for mitigation of export credit risk for certain parties.

The maximum exposure to the credit risk at the reporting date is primarily from trade receivables amounting to H 5,285.3 million and H 4,545.1 million as of March 31,2022 and March 31,2021, respectively. Trade receivables consist of a large number of customers, spread across diverse industries and geographical areas. Credit risk has always been managed by the Company through credit approvals, establishing credit limits and continuously monitoring the credit worthiness of customers to which the Company grants credit terms in the normal course of business and by way of taking credit insurance against export receivables.

The following table gives details in respect of percentage of revenues generated from top one customer and top five customers (excluding incentives):

LIQUIDITY RISK

(i) Liquidity risk management

The Company''s objective is to maintain optimum levels of liquidity to meet its cash and collateral requirements at all times.

The Chief Financial Officer of the Company is responsible for liquidity risk management who has established an appropriate liquidity risk management framework for the management of the Company''s short, medium and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities. The Chief Financial Officer reports the same to the Board of Directors on quarterly basis.

(ii) Maturities of financial liabilities

The following tables detail the Company''s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The amount disclosed in the tables have been drawn up based on the undiscounted contractual cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The tables include both interest and principal cash flows.

Derivative financial instruments

The Company holds derivative financial instruments such as foreign currency forward contracts to mitigate the risk of changes in exchange rates on foreign currency exposures. The counterparty for these contracts is generally a bank or a financial institution. These derivative financial instruments are values based on quoted prices for similar assets and liabilities in active markets or inputs that are directly or indirectly observable in the marketplace.

MARKET RISK

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk: currency risk and interest rate risk. Financial instruments affected by market risk includes loan and borrowings, lease liabilities and derivative financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return. The Company uses derivatives to manage market risks. Derivatives are only used for economic hedging purposes and not as speculative investments. All such transactions are carried out within the guidelines set by the Board of Directors and Risk Management Committee.

There has been no significant changes to the Company''s exposure to market risk or the methods in which they are managed or measured.

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 undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise. The Company''s exposure to currency risk relates primarily to the Company''s operating activities and borrowings when transactions are denominated in a different currency from the Company''s functional currency.

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

For the year ended March 31, 2022, every one rupee depreciation/appreciation in the exchange rate against USD, might have affected the Company''s incremental margins (profit as a percentage to revenue) approximately by 0.48%. The Company''s exposure to foreign currency changes for all other currencies is not material.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s debt obligations with floating interest rates. The borrowings as at March 31, 2022 is H 14,770.1 million (previous year H 5,387.6 million) which are interest bearing and interest rates are variable.

Interest rate sensitivity

For the year ended March 31, 2022, every 1 percentage increase/decrease in weighted average bank interest rate might have affected the Company''s incremental margins (profit as a percentage to revenue) approximately by 0.15% (previous year 0.28%).

Price risk

The Company''s investments in other funds are susceptible to market price risk arising from uncertainties about future values of the investment securities. The Company manages the price risk through diversification and by placing limits on individual and total equity instruments. Reports on the portfolio are submitted to the Company''s senior management on a regular basis.

At the reporting date, the exposure in other funds is H.9.8 million (previous year H 12.8 million). A decrease or increase in NAV of 5% could have an impact of approximately of H.0.5 million (previous year H 0.6 million) on the profit or loss.

Derivatives not designated as hedging instruments

The Company uses forward currency contracts and option currency contracts to hedge its foreign currency risks. Derivative contracts not designated by management as hedging instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently re-measured at fair value on each reporting date. Such contracts are entered into for periods consistent with exposure of the underlying transactions.

Derivatives designated as hedging instruments

The Company enters into hedging instruments in accordance with policies as approved by the Board of Directors with written principles which is consistent with the risk management strategy of the Company.

Cash flow hedges

Foreign currency risk

Foreign exchange forward contracts are designated as hedging instruments in cash flow hedges of forecasted hedged items in US dollar and Euro. These forecast transactions are highly probable.

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

Valuation Technique

The Company enters into derivative financial instruments with various counterparties, principally banks and financial instiutions with investment grade credit ratings. Foreign exchange forward and option contracts are valued using valuation techniques, which employs the use of market observable inputs. The most frequently applied valuation techniques include forward pricing models, using present value calculations. Where quoted market prices are not available, fair values are based on management''s best estimates, which are arrived at by the reference to market prices.

NOTE 50 - Pursuant to approval granted by Union Cabinet on July 14, 2021 (notified on August 13, 2021), for continuation of Rebate of State and Central taxes and Levies (RoSCTL) with the same rates as notified by Ministry of Textiles vide Notification dated March 08, 2019 on exports of Apparel/Garments and Made-ups, during the year ended March 31, 2022, the Company has accrued the export benefits of RoSCTL of H 579.3 million pertaining to the eligible export sales for the period from January 1, 2021 to March 31, 2021. Further, the Central Government has also notified Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme Guidelines and Rates for other textile products vide Notification dated August 17, 2021. Accordingly, the Company had accrued the benefits under the aforesaid scheme amounting to H 30.9 million on eligible export sales for the period from January 1, 2021 to March 31 2021.

During the current year, Company has accrued the benefits under the aforesaid schemes amounting to H 2,844.1 million (net of discount of H 579.3 million). Due to lower realization of e-Scrips (received/receivable under RoSCTL and RoDTEP schemes), the Company has reduced the value of such export benefits by the amount of prevailing discount on e-Scrips amounting to H 392.5 million on outstanding e-Scrips as at March 31, 2022.

NOTE 52 - The Company''s operations and revenue were impacted during the previous year on account of disruption in economic activity due to CoVID 19. The management believes that the overall impact of the pandemic is short term and temporary in nature and is not likely to have any significant impact on the recoverability of the carrying value of its assets and the future operations.

NOTE 53 - On April 05, 2021, a major fire broke out in the Cotton warehouse located in the manufacturing facilities at Budhni, Madhya Pradesh, however the fire has not caused any disturbance in the day to day operations of the said facilities. The fire has resulted in major damage of stocks of cotton lying in the cotton warehouse and its building. During the current year, the Company has received the insurance claim and accounted for loss on account of fire of H 73.5 million.

NOTE 54 - The Joint Inspection team of Ministry of Textiles, appointed by Technical Advisory-cum-Monitoring Committee (TAMC) has reached final stage for issues relating to Amended Technology upgradation fund scheme (A-TUFS) and previous versions of Technology upgradation fund scheme vide their final report dated March 02, 2021. Based on final report, the Company had, during the previous year, capitalized excess capital subsidies and interest subsidies of H 124.0 million and reversed excess interest subsidies of H 177.7 million. Further, the Company had during the previous year provided additional depreciation charge of H 51.7 million on above excess capital and interest subsidies amount and interest on reversal of such excess interest subsidies of H 74.9 million pertaining to earlier years. During the previous year, the Company had adjusted the amount of excess capital subsidies, excess interest subsidies and interest on excess capital subsidies/excess interest subsidies aggregating to H 376.6 million from the amount of interest subsidies receivable from the Central Government in the absence of demand letter from the Central Government. Total amount of H 304.3 million towards reversal of excess interest subsidies, provision of interest on excess interest and capital subsidies and depreciation charge on excess capital subsidies pertaining to earlier years had been shown under exceptional item.

NOTE 55 - During the previous year, the Company had sold its entire stake in equity shares of Lotus Hometextiles Limited (‘LTL or "Associate") for H 1,120.4 million and consequently, LTL has ceased to be an Associate of the Company w.e.f. October 16, 2020. The accounting treatment of the same in the books of accounts had been done as per lnd AS 28 "Investments in Associates and Joint Ventures". The Company had presented, the profit on account of sale of said investment of H 487.4 million (net of tax of H 83.0 million), calculated as the difference between the net disposal proceeds and the carrying amount of the investment, which is the same as cost of acquisition on initial recognition as an exceptional item.

NOTE 56- 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. However, the date on which the Code will come into effect has not been notified. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period when the Code becomes effective.

NOTE 57 - Other Statutory Information

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

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

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

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

(v) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), 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 have 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 have not 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

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Mar 31, 2021

1. AH tangible assets have been pledged to secure borrowings of the Company (refer note 16 and 17)

2. The amount of borrowing costs capitalised during the year is '' 313.1 million (Previous year '' 107.6 million) at the actual rate of interest on specific borrowings utilised and weighted average interest rate for general borrowings.

3. In accordance with Ind AS 101, the Company had carried out fair valuation of all its land on first time adoption as at April 01, 2015 consequent to which deemed cost of land was increased by '' 7,905.2 million.

4. Capital work in progress includes goods in transit of '' 6.6 million (Previous year '' 10.6 million).

5*. Adjustments represent reversal of excess capital subsidies (refer note 53 to the Standalone Ind AS financial statements).

6**. Adjustments represented conversion of leasehold land to freehold land, during the previous year (refer note 39 to the Standalone Ind AS financial statements).

7***.Adjustments represented re-allocation of pre-operative expense of Company''s housing colony project capitalised in the year 2018-2019. Excess depreciation provided till 20182019 of '' 2.2 million was adjusted from depreciation charge for the previous year.

8. Depreciation and amortization expense

(b) Rights, preferences and restrictions attached to the equity shareholders:

The Company has only one class of equity shares having par value of '' 1 per share (Previous year '' 1 per share). Each shareholder is eligible for one vote per equity share held. In the event of liquidation of the Company, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding. The Company declares and pays dividend in Indian Rupees.The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

Non Convertible debentures

a) NCDs are to be secured by way of first ranking pari-passu charge by way of mortgage (to be shared between the Debentures Trustee and Existing Lenders) on the mortgaged properties as defined in trust deed, first ranking pari-passu charge by way of hypothecation (to be shared between the Debentures Trustee and Existing Lenders) on the movable fixed assets and second ranking pari-passu charge by way of hypothecation (to be shared between the Debentures Trustee and the Existing Lenders) on the hypothecated Assets as defined in trust deed (excluding the Movable Fixed Assets) of the Company (refer note 40-I(B)).

Term loans

a) Term loans except for loans referred in (b) and (c) below from banks and financial institution are secured by way of

equitable mortgage created or to be created on all the present and future immovable properties including all land,

This reserve represents (i) The cumulative gains and losses arising on the revaluation of equity instruments measured at fair value through other comprehensive income and gain arising on disposal of equity instruments, net of taxes and such gains and losses will never be classified to statement of profit and loss. Such cumulative gains are transferred to retained earnings on disposal of such equity instruments.

( ii) the cumulative effective portion of gains or losses, net of taxes arising on changes in fair value of designated portion of hedging instruments entered into for cash flow hedges. The cumulative gain or loss arising on changes in fair value of the designated portion of the hedging instruments that are recognised and accumulated under the heading of cash flow hedging reserve will be reclassified to statement of profit and loss only when the hedged transaction affects the profit or loss.

buildings, structures, all plant and equipment attached thereon of the Company and hypothecation of all the movable properties including movable machinery spares, tools and accessories, etc., present and future, subject to prior charges created and / or to be created in favour of the Company''s bankers on stocks of raw materials, semi finished and finished goods, consumable stores and other movable assets excluding vehicles specifically hypothecated against vehicle loans, as may be required for working capital requirements in the ordinary course of business. The mortgages and charges referred to above rank pari-passu among the lenders (refer note 40-I(A) and 40-II(A (i))).

b) Term loan from Indusind Bank amounting to '' Nil (Previous year '' 581.3 million) was secured by way of mortgage

created on specific property for which loan was taken. (refer note 40-11 (A)(ii). The Company had pledged receipts of fixed

deposit amounting to Nil (Previous year '' 38.6 million) against the said loan. The said loan was fully repaid during the current year.

c) With respect to the term loans from banks obtained by erstwhile Trident Corporation Limited (the Amalgamated company), amalgamated with the Company with effect from the appointed date i.e. April 1, 2014, the same were secured by way of equitable mortgage created on the immovable properties including all buildings, structures, plant and machinery attached thereon and hypothecation of all the movable properties including movable machinery, spares, tools and accessories stocks of raw materials, semi finished goods, consumable stores and other moveables of the Amalgamated company as existing immediately prior to the amalgamation of the Amalgamated company with the Company 40-II (A) (iii). These loans were fully repaid during the current year.

The interest rates range from 2.98% to 9.60% per annum before Interest subsidies under TUFS from Central and State Governments.

Vehicles loans

Vehicle loans are secured by hypothecation of vehicles acquired against such loans (refer note 40(C) for repayment terms).

The interest rates range from 8.50% to 9.90% per annum.

For the current maturities of long-term borrowings, refer note 19 other financial liabilities.

Cash credits/working capital loans

Cash credits/working capital loans are secured by hypothecation of raw materials, semi finished and finished goods, consumable stores, other movable assets excluding vehicles specifically hypothecated against vehicle loans and book debts, present and future, of the Company. The limits are further secured by way of second pari passu charge on the immovable properties of the Company.

The interest rates for Cash credits/working capital loans from banks range from 1.40% to 9.50% per annum before subvention.

The interest rates for unsecured short term borrowings from banks and financial institutions range from 4.75% to 5.25% per annum.

The Reserve Bank of India vide its circular dated March 27, 2020 permitted the lenders to allow a moratorium for three months of EMI (Equated Monthly Instalments) incuding interest, falling due between March 01, 2020 and May 31, 2020 (later extended by an additional three months up to August 31, 2020) for various categories of loans. The Company had availed the permitted moratorium for some of its borrowings and interest thereon falling due between March 01, 2020 and May 31, 2020. The Company has paid all its due EMI''s within the extended moratorium period.

A. Contingent liability under Service tax represent demand and penalty of '' 66.7 million (Previous year Nil) for service tax under reverse charge basis on commission and sitting fee paid to Non-executive Directors for the financial year 2014-15 to 2016-17. The Company has filed an appeal before CESTAT, Ludhiana subsquent to year end.

B. Contingent liabilities under Income Tax Act, 1961 of '' 9.6 million (Previous year '' 8.8 million) include:

(i) '' 6.1 million (Previous year '' 6.1 million) being penalties under Section 271(1)(c) of Income Tax Act, 1961 levied for assessment years 2004-2005 and 2006-2007.

(ii) Other disputed demands of '' 3.5 million pertaining to assessment year 2013 - 2014, 2016-2017 and 2019-20 (Previous year '' 2.7 million pertaining to assessment year 2013 - 2014 and 2016-17) .

(iii) The Company has received an order under Section 143(3) of the Income Tax Act, 1961 (''Act'') based on order of Transfer Pricing Officer (“TPO”) under Section 92CA(3) of the Act for the assessment year 2016-2017. The TPO has made reduction in the amount of deduction claimed by the Company under Section 80IA of the Act amounting to '' 1,244.2 million. There is no impact of TPO order for the assessment year 2016 - 2017 since there were adjustment of brought forward losses and deduction under Section 80IA was not claimed. The Company has filed an appeal against the said order. Further, the Company has received similiar order for the assessment year 2017-2018, subsquent to year end wherein TPO has made reduction in the amount of deduction claimed by the Company under Section 80IA of the Act amounting to '' 520.8 million. There is no impact of the said order since the Company has already written off MAT credit entitilement of '' 289.5 million in assessment year 2020-2021. The Company is assessing the consequential impact on deductions claimed under Section 80IA of the Act, 1961 for the assessment years 2018 - 2019 and 2019 - 2020.

* These matters are subject to legal proceedings in the ordinary course of business. In the opinion of the management, legal proceedings when ultimately concluded will not have a material effect on the results of operations or financial position of the Company. Based on the favourable orders in similar matters and based on the opinion of legal counsel of the Company, the Company has a good chance of winning the cases.

C. There are numerous interpretative issues relating to the Supreme Court (SC) judgement on PF dated 28^th February, 2019. As a matter of caution, the Company has applied the judgement on a prospective basis from the date of the SC order. The Company will update its provision for the period prior to the Supreme Court judgement, on receiving further clarity on the subject.

D. Guarantees^A given to banks on behalf of others of Nil (Previous year '' 640.0 million) - Loan outstanding was Nil as at March 31, 2020

^A The Company had given corporate guarantees for business purposes to Punjab National Bank on behalf of Lotus Hometextiles Limited (Formerly known as “Lotus Texpark Limited”), associate of the Company. In the current year, the said guarantee has been withdrawn.

a) Defined contribution plans

The Company makes contribution towards employees'' provident fund scheme. Under the scheme, the Company is required to contribute a specified percentage of salary as specified in the rules of the scheme. The Company has recognized '' 240.1 million during the year (Previous year '' 300.3 million) as expense towards contribution to this plan. An amount of '' 2.4 million (Previous year '' 3.0 million) has been included under Property plant and equipment / Capital work in progress. Further amount of '' 0.4 million has been reimbursed under Deen Dayal Upadhay Gramin Kaushal Yojna.

b) Defined benefit plans

Gratuity scheme

The Company has a defined gratuity plan (Funded) and the Gratuity plan is governed by The Payment of Gratuity Act, 1972 (“Act”). Under the Act, employees who have completed five years of service are entitled for gratuity benefit of 15 days salary for each completed year of service or part thereof in excess of six months. The amount of benefit depends on respective employee''s salary, the years of employment and retirement age of the employee and the gratuity benefit is payable on termination/retirement of the employee. There is no maximum limit for the payment of gratuity benefit. The present value of obligation is determined based on an actuarial valuation as at the reporting date using the Projected Unit Credit Method.

The fund has the form of an irrevocable trust and it is governed by Board of Trustees. The Board of trustees is responsible for the administration of the plan assets and for the definition of investment strategy. The scheme is funded with qualifying insurance policies. The Company is contributing to trusts towards the payment of premium of such gratuity schemes.

The following table sets out the details of defined benefit plan and the amounts recognised in the standalone Ind AS financial statements:

VII Actuarial risks

Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are detailed below:

interest 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.

Salary inflation risk

Higher than expected increases in salary will increase the defined benefit obligation.

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.

to the Standalone Ind AS Financial Statements as at and for the year ended March 31, 2021

Furthermore, in presenting the above sensitivity analysis the present value of the defined benefit obligations has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognised in the standalone Ind AS financial statements.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

The sensitivity analysis above have been determined based on reasonably possible changes of the respective assumption occurring at the end of the reporting period, while holding all other assumptions constant.

C. No guarantees have been given or received except a guarantee of Nit (Previous year '' 640.0 million) provided by the Company for business purpose to Punjab National Bank on behalf of Lotus Hometextiles Limited (formerly known as Lotus Texpark Limited), associate of the Company. Further, the Company had executed a non-disposal undertaking in respect of equity shares held by the Company of Lotus Hometextiles Limited (formerly known as Lotus Texpark Limited) in favour of a bank that have provided financial assistance to Lotus Hometextiles Limited (formerly known as Lotus Texpark Limited). During the year, the said guarantee and non-disposal undertaking has been withdrawn. No expense has been recognised in the current or prior years for bad or doubtful debts in respect of the amounts owed by related parties.

D. The above transactions with related parties were made at arm''s length price.

E. With effect from, July 18, 2019, eight companies were merged in the associate company namely ''Lotus Hometextiles Limited (formerly known as Lotus Texpark Limited)''. Hence, the transactions between the Company and said company includes transactions of merged companies with effect from the said date.

NOTE 38- SEGMENT INFORMATION I Segment Accounting Policies:

a. Product and Services from which reportable segment derive their revenues (Primary Business Segments)

Based on the nature and class of product and services, their customers and assessment of differential risks and returns and financial reporting results reviewed by Chief Operating Decision Maker (CODM), the Company has identified the following business segments which comprises of:

Textiles : Yarn, Towel, Bedsheets, Dyed Yarn manufacturing (Including utility services)

Paper and Chemical : Paper and Sulphuric Acid (Including utility services)

b. Geographical segments (Secondary Business Segments)

The geographical segments considered and reviewed by Chief Operating Decision Maker for disclosure are based on markets, broadly as under:

India

USA

Rest of the world

c. Segment accounting policies

Segment accounting policies: In addition to the significant accounting policies applicable to the business segment as set out in note 2, the accounting policies in relation to segment accounting are as under:

i. Segment assets and liabilities:

Segment assets include all operating assets used by a segment and consist principally of cash, debtors, inventories, Right of use assets and Property Plant and Equipment including capital work in progress, net of allowances and provisions, which are reported as direct offset in the balance sheet. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities.

ii Segment revenue and expenses:

Joint revenue and expenses of segments are allocated amongst them on reasonable basis. All other segment revenue and expenses are directly attributable to the segments.

iii Inter segment sales:

I nter segment sales are accounted for at cost plus appropriate margin (transfer price) and are eliminated in consolidation.

iv Segment results:

Segment results represent the profit before tax earned by each segment without allocation of central administration costs, other non operating income as well as finance costs. Operating profit amounts are evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance.

Information about major customers

Refer Note 43 (Credit Risk)

NOTE 39- LEASES AS LESSEE

The Company has (ease contracts for various Land, office premises, guest houses and factory premises (including plant & equipment). Leases of office premises, guest houses and factory premises (including plant & equipment) generally have lease terms ranging from 11 months to 20 years and leases of land generally have lease terms between 30-99 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.

The Company also has certain leases of office premises and guest houses with lease terms of 12 months or less. The Company applies the ''short-term lease'' recognition exemptions for these leases.

For maturity analysis of lease liability refer note 43 Financial risk management framework and policies under maturities of financial liabilities.

The Company had total cash outflows for leases of '' 83.7 million (previous year: '' 91.7 million). There are no future cash outflows relating to leases that have not yet commenced.

There are no leases having variable lease payments. The Company has not entered into any residual value contracts during the year. There are no sale and leaseback transactions during the year.

Extension and termination options are included in a number of leases. These are used to maximise operational flexibility in terms of managing the assets used in the Company''s operations. The majority of extension and termination options held are exercisable only by the Company and not by the respective lessor.

Payments associated with short-term leases are recognised on a straight-line basis as an expense in statement of profit and loss. Short-term leases are leases with a lease term of 12 months or less. The Company did not have any leases impacted by the Covid-19 related rent concession amendment.

The Compensation Committee of Board of Directors of the Company had granted options to the employees pursuant to Trident Employees Stock Options Plan 2007 (''the Plan'') on July 9, 2007 (Grant I) and July 23, 2009 (Grant II). These options were granted at '' 17.55 and '' 11.20 per option respectively being the latest available closing market price prior to the date of grant of options in accordance with SEBI guidelines. The quoted price of share on grant and the exercise price of option is equal and therefore there is no impact on statement of profit and loss due to Employee Share-based options as the Company is following intrinsic value method.

The Company has not allotted any equity share (previous year Nil equity shares) to employees during the year under the Trident Employees Stock Options Plan, 2007. However, the disclosure is given since the Plan is live and the Company can grant further options under this Plan.

The Board of Directors and the Shareholders of the Company have approved a Scheme called as “Trident Limited Employee Stock Purchase Scheme - 2020“ (“Scheme”) in their meeting held on May 16, 2020 and July 9, 2020 respectively. This scheme is effective from July 9, 2020. Pursuant to the Scheme, the Company has constituted Trident Limited Employees Welfare Trust (''Trust'') to acquire, hold and allocate/transfer equity shares of the Company to eligible employees from time to time on the terms and conditions specified under the Scheme. However, no offer has been made to eligible employees under the Scheme till March 31, 2021. The said trust has purchased, during the current year, Company''s equity shares aggregated to 100,000,000 equity shares from the secondary open market. The financial statements of the Trust have been included in the standalone Ind AS financial statements of the Company in accordance with the requirements of Ind AS and cost of such treasury shares has been presented as a deduction in Other Equity. Such number of equity shares have been reduced while computing basic and diluted earnings per share.

NOTE 42- (c) The Company had elected to exercise the option permitted under Section 115BAA of the Income Tax Act, 1961 as introduced by the Taxation Laws (Amendment) Ordinance, 2019 during the year ended March 31, 2020. Accordingly, the Company had recognised provision for taxation and re-measured its deferred tax liabilities basis the rate prescribed in the said Section. The Company had a Minimum Alternate Tax (MAT) credit entitlement amounting to '' 298.5 million which has been reversed during the previous year as the same is not allowed to be carried forward where the Company has elected to exercise the option of lower tax rate permitted under Section 115BAA of the Income Tax Act, 1961 as introduced by the Taxation Laws (Amendment) Ordinance, 2019.

NOTE 43- FINANCIAL INSTRUMENTS Capital management

For the purpose of Company''s capital management, capital includes Issued Equity capital and all reserves attributable to equity holders of the Company.

The Company''s capital management objectives are:

- to ensure the Company''s ability to continue as a going concern

- to provide an adequate return to shareholders by pricing products and services commensurately with the level of risk.

The Company manages capital risk in order to maximize shareholders'' profit by maintaining sound/optimal capital structure through monitoring of financial ratios, such as net debt-to-equity ratio on a monthly basis and implements capital structure improvement plan when necessary. There is no change in the overall capital risk management strategy of the Company compared to last year.

The management assessed that fair value of trade receivables, cash and cash equivalents, other bank balances, other current financial assets (except derivative financial assets), short term borrowings, trade payables and other current financial liabilities (except derivative financial liabilities) approximate their carrying amounts largely due to short-term maturities of these instruments.

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.

Financial Risk Management Framework

The Company''s principal financial liabilities, other than derivatives, comprise loans and 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 and other receivables, receivables from government authorities, security deposits and cash and cash equivalents that derive directly from its operations. The Company also holds investments and enters in to derivative transactions.

The Company''s corporate treasury function provides services to the business, co-ordinates access to domestic and international financial markets, monitors and manages the financial risks relating to the operations of the Company through internal risk reports which analyse exposures by degree and magnitude of risks. These risks include market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

The Company seeks to minimise the effects of these risks by using derivative financial instruments to hedge risk exposures. The Company does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes.

The Corporate Treasury function reports quarterly to the Board of Directors of the Company for monitoring risks and reviewing policies implemented to mitigate risk exposures.

CREDIT RISK

Credit risk arises when a counterparty defaults on its contractual obligations to pay resulting in financial loss to the Company. The Company has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults. The Company has also taken export credit insurance for mitigation of export credit risk for certain parties.

The maximum exposure to the credit risk at the reporting date is primarily from trade receivables amounting to '' 4,545.1 million and '' 2,784.8 million as of March 31, 2021 and March 31, 2020, respectively. Trade receivables consist of a large number of customers, spread across diverse industries and geographical areas. Credit risk has always been managed by the Company through credit approvals, establishing credit limits and continuously monitoring the credit worthiness of customers to which the Company grants credit terms in the normal course of business and by way of taking credit insurance against export receivables.

LIQUIDITY RISK

(i) Liquidity risk management

The Company''s objective is to maintain optimum levels of liquidity to meet its cash and collateralrequirements at all times. The Chief Financial Officer of the Company is responsible for liquidity risk management who has established an appropriate liquidity risk management framework for the management of the Company''s short, medium and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities. The Chief Financial Officer reports the same to the Board of Directors on quarterly basis.

(ii) Maturities of financial liabilities

The following tables detail the Company''s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The amount disclosed in the tables have been drawn up based on the undiscounted contractual cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The tables include both interest and principal cash flows.

MARKET RISK

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk: currency risk and interest rate risk. Financial instruments affected by market risk includes loan and borrowings, lease liabilities and derivative financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return. The Company uses derivatives to manage market risks. Derivatives are only used for economic hedging purposes and not as speculative investments. All such transactions are carried out within the guidelines set by the Board of Directors and Risk Management Committee.

There has been no significant changes to the Company''s exposure to market risk or the methods in which they are managed or measured.

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 undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise. The Company''s exposure to currency risk relates primarily to the Company''s operating activities and borrowings when transactions are denominated in a different currency from the Company''s functional currency.

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

interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s debt obligations with floating interest rates. The borrowings as at March 31, 2021 is '' 5,387.6 million (previous year '' 19,518.1 million) which are interest bearing and interest rates are variable.

interest rate sensitivity

For the year ended March 31, 2021, every 1 percentage increase/decrease in weighted average bank interest rate might have affected the Company''s incremental margins (profit as a percentage to revenue) approximately by 0.28% (previous year 0.47%).

Price risk

The Company''s investments in other funds are susceptible to market price risk arising from uncertainties about future values of the investment securities. The Company manages the price risk through diversification and by placing limits on individual and total equity instruments. Reports on the portfolio are submitted to the Company''s senior management on a regular basis.

At the reporting date, the exposure to listed equity securities at fair value was Nil (previous year '' 202 million). A decrease of 5% on the NSE market index could have an impact of approximately of Nil (previous year '' 10.1 million) on the OCI or equity attributable to the Company. An increase of 5% in the value of the listed securities would also impact OCI and equity by the same amount. These changes would not have an effect on profit or loss.

At the reporting date, the exposure in other funds is '' 12.8 million (previous year '' 12.5 million). A decrease or increase in NAv of 5% could have an impact of approximately of '' 0.6 million (previous year '' 0.6 million) on the profit or loss.

Derivatives not designated as hedging instruments

The Company uses forward currency contracts and option currency contracts to hedge its foreign currency risks. Derivative contracts not designated by management as hedging instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently re-measured at fair value on each reporting date. Such contracts are entered into for periods consistent with exposure of the underlying transactions.

Derivatives designated as hedging instruments

The Company enters into hedging instruments in accordance with policies as approved by the Board of Directors with written principles which is consistent with the risk management strategy of the Company.

Cash flow hedges Foreign currency risk

Foreign exchange forward contracts are designated as hedging instruments in cash flow hedges of forecasted hedged items in US dollar and Euro. These forecast transactions are highly probable.

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

The critical terms of the foreign currency forward contracts match the terms of the expected highly probable forecast sale transactions. As a result, no hedge ineffectiveness arises requiring recognition through profit or loss.

The cash flow hedges of the forecasted sale transactions during the year ended March 31, 2021 were assessed to be highly effective and unrealised gain of '' 640.3 million (previous year unrealised loss of '' 663.3 million (including '' 17.6 million on cancelled forward contracts to be recognised in profit or loss on recognition of underlying hedged item)), with a deferred tax charge of '' 161.1 million (previous year deferred tax credit ''189.5 million) relating to the hedging instruments, is included in OCI.

Valuation Technique

The Company enters into derivative financial instruments with various counterparties, principally banks and financial instiutions with investment grade credit ratings. Foreign exchange forward and option contracts are valued using valuation techniques, which employs the use of market observable inputs. The most frequently applied valuation techniques include forward pricing models, using present value calculations. Where quoted market prices are not available, fair values are based on management''s best estimates, which are arrived at by the reference to market prices.

The Company has the following derivative instruments outstanding as at the year-end against its foreign currency exposures / future transactions:

NOTE 44- The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.

NOTE 45- The Board of Directors have recommended a final dividend of 36% ('' 0.36/- per Equity Share of '' 1/- each) for the financial year 2020-2021 subject to the approval of the shareholders in the ensuing Annual General Meeting of the Company and are not recognised as a liability as at March 31, 2021.

During the financial year 2019-20, the Board of Directors had declared three interim dividends i.e. two interim dividends of 9% each ('' 0.90/- per Equity Share of '' 10/- each) and one interim dividend of 18% ('' 0.18/- per Equity Share of '' 1/- each). The total dividend for the financial year 2019-20 was 36% ('' 0.36/- per Equity Share of '' 1/-each).

NOTE 48- The Central Government of India has announced a new scheme on Remission of Duties or taxes on Export Product (RODTEP) which has replaced erstwhile scheme of export benefits of Remission of State and Central taxes levies (ROSCTL) and Merchandise Export from India Scheme (MEIS) w.e.f. January 01, 2021. As the rates under RODTEP have not been announced till date, the income on account of benefits under the new scheme has not been recognized for the period from the January 1, 2021 to March 31, 2021.

NOTE 50-The C ompany had setup its sheeting division in the year 2015-16. The carrying value of PPE and other non-current assets of the division as at March 31, 2021 is '' 3,997.0 million (Previous year 4,500.7 million). This division manufactures various line of bed sheets. The division has been incurring losses, although the division has earned profit before interest and depreciation during the last two years and earned profit before depreciation during the current year The management of the Company has performed an impairment assessment of the said division as required by the Ind AS 36. The management of the Company has computed the fair enterprise value of the division based on Discounted Cash Flows (""DCF"") method. The turnover of the division has improved from '' 132.0 million for the period ended March 31, 2016 to '' 8,769.2 million for the year ended March 31, 2021. With the increasing turnover, the losses have reduced and the division has a positive profit before depreciation. Keeping the positive trend, the management has estimated revenue of '' 12,768.6 million during the year ending March 31, 2022 after considering the uncertain economic situation due to global pandemic. The management has taken next 5 years projections into consideration for performing impairment analysis. Based on the outcomes of the impairment assessment, no impairment is required as at the year end.

The calculation of Fair Enterprise Value of the division is most sensitive to the following assumptions:

Discount Rate: Discount rates represent the current market assessment of the risks specific to the division, taking into consideration the time value of money and individual risks of the underlying assets that have not been incorporated in the cash flow estimates. The discount rate calculation is based on the specific circumstances of the Company and the division and is derived from its weighted average cost of capital (WACC). The WACC takes into account both debt and equity. The cost of equity is derived from the expected return on investment by the Company''s investors. The cost of debt is based on the interest-bearing borrowings which the Company is obliged to service. Division''s specific risk is incorporated by applying individual beta factor. The beta factor is evaluated annually based on publicly available market data. Adjustments to the discount rate are made to factor in the specific amount and timing of the future tax flows in order to reflect a pre-tax discount rate.

The management has used a discounting rate of 13.6% to arrive at the fair enterprise value for the division.

Revenue Estimates: Revenue estimates are based on trends of last two years as well as based on the expectations of the management for increase in the export sales.

Sensitivity to changes in assumptions

The implications of the key assumptions for the recoverable amount are discussed below:

Discount Rate: A rise in discount rate by 5.0% i.e to 14.3% would not result in value in use being lower than the carrying amount of the assets.

Revenue Estimates: A decrease in estimated revenue by 5.0% would not result in value in use being lower than the carrying amount of the assets.

NOTE 51- The Company''s operations, revenue and consequently profit during the year ended March 31, 2021 were impacted due to Covid-19. Further second wave of Covid-19 pandemic has hit India recently. Currently, the state Governments have implemented regional lockdowns based on situation in individual states/regions. The Company has made detailed assessment of its liquidity position and the recoverability of carrying value of its assets comprising property, plant and equipment, intangible assets, right of use assets, investments, inventory and trade receivables. Based on current indicators of future economic conditions, the Company expects to recover the carrying amount of these assets. The impact of the pandemic in the subsequent period is highly dependent on the situations as they evolve and hence may be different from that estimated as at the date of approval of these standalone Ind AS financial statements.

NOTE 52- On April 05, 2021, a major fire broke out in the Cotton warehouse located in the manufacturing facilities at Budhni, Madhya Pradesh, however the fire has not caused any disturbance in the day to day operations of the said facilities. The fire has resulted in major damage of stocks of cotton lying in the cotton warehouse and its building. The loss of inventory and repair cost of damages to building is adequately covered by Insurance. There has been no loss of life due to fire.

NOTE 53- The Joint Inspection team of Ministry of Textiles, appointed by Technical Advisory-cum-Monitoring Committee (TAMC) has reached final stage for issues relating to Amended Technology upgradation fund scheme (A-TUFS) and previous versions of Technology upgradation fund scheme vide their final report dated March 02, 2021. Based on final report, the Company has, during the current year, capitalized excess capital subsidies and interest subsidies of '' 124.0 million and reversed excess interest subsidies of '' 177.7 million. Further, the Company has during the current year provided additional depreciation charge of '' 51.7 million on above excess capital and interest subsidies amount and interest on reversal of such excess interest subsidies of '' 74.9 million pertaining to earlier years. The Company has adjusted the amount of excess capital subsidies, excess interest subsidies and interest on excess capital subsidies/ excess interest subsidies aggregating to '' 376.6 million from the amount of interest subsidies receivable from the Central Government in the absence of demand letter from the Central Government. Total amount of '' 304.3 million towards reversal of excess interest subsidies, provision of interest on excess interest and capital subsidies and depreciation charge on excess capital subsidies pertaining to earlier years has been shown under exceptional item.

NOTE 54- The Company has sold its entire stake in equity shares of Lotus Hometextiles Limited (''LTL'' or "Associate") for '' 1,120.4 million and consequently, LTL has ceased to be an Associate of the Company w.e.f. October 16, 2020. The accounting treatment of the same in the books of accounts has been done as per Ind AS 28 "Investments in Associates and Joint Ventures". The Company has presented, the profit on account of sale of said investment of '' 487.4 million (net of tax of '' 83.0 million), calculated as the difference between the net disposal proceeds and the carrying amount of the investment, which is the same as cost of acquisition on initial recognition as an exceptional item.

NOTE 55- 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. However, the date on which the Code will come into effect has not been notified. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period when the Code becomes effective.

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

For S.R. BATLIBOI & CO. LLP RAJIV DEWAN DEEPAK NANDA

Chartered Accountants Chairman Managing Director

ICAI firm registration number 301003E/E300005 DIN: 00007988 DIN: 00403335

ANIL GUPTA GUNJAN SHROFF RAMANDEEP KAUR

Partner Chief Financial Officer Company Secretary

Membership No. 87921

Place: New Delhi

Date: May 15, 2021

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Mar 31, 2018

NOTE 1 Key sources of estimation uncertainity

In the application of the Company accounting policies, the management of the Company is required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods. The following are the areas of estimation uncertainty and critical judgements that the management has made in the process of applying the Company’s accounting policies and that have the most significant effect on the amounts recognised in the financial statements: -

Useful lives of Intangible assets

The intangible assets are amortised over the estimated useful life. The estimated useful life and amortisation method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis.

Useful lives of depreciable tangible assets

Management reviews the useful lives of depreciable assets at each reporting date. As at March 31, 2018 management assessed that the useful lives represent the expected utility of the assets to the Company. Further, there is no significant change in the useful lives as compared to previous year. Defined benefit plans

The cost of the defined benefit plan and other post-employment benefits and the present value of such obiigat ion 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, mortality rates and future pension increases. 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.

Notes:

1. Additions to plant and equipment include exchange fluctuation Loss of Nil (Previous year Rs, 13.1 million).

2. All tangible assets have been hypothecated/mortgaged to secure borrowings of the Company, (refer note 17 and 19)

3. The amount of borrowing costs capitalised during the year is Rs, 27.1 million (Previous year Nil) at the actual rate of interest of the specific borrowing.

4.In accordance with Ind AS 101, the Company had carried out fair valuation of all its freehold land on first time adoption as at April 1, 2015 consequent to which deemed cost of land increased by Rs, 8,782.3 million.

(b) Rights, preferences and restrictions attached to the equity shareholders:

The Company has only one class of equity shares having par value of Rs, 10 per share. Each shareholder is eligible for one vote per equity share held. In the event of liquidation of the Company the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding. The Company declares and pays dividend in Indian Rupees. The dividend proposed by the board of directors is subject to approval of the shareholders in the Annual General Meeting.

Term loans

a) Term loans except for loans referred in b, c and d below from banks and financial institution are secured by way of equitable mortgage created or to be created on all the present and future immovable properties except for charges created for loan referred in b, c and d below including all land, buildings, structures, all plant and equipment attached thereon of the Company and hypothecation of all the movable properties except for charges created for loan referred in b, c and d below including movable machinery, spares, tools and accessories, etc., present and future, subject to prior charges created and / or to be created in favour of the Company’s bankers on stocks of raw materials, semi-finished and finished goods, consumable stores and other movable assets excluding vehicles specifically hypothecated against vehicle loans, as may be required for working capital requirements in the ordinary course of business. The mortgages and charges referred to above rank pari-passu among the lenders (refer note 42(A) (i) and 42(B) (i)

b) The Company has pledged receipts of fixed deposits amounting to Rs, 1,000 million (previous year Rs, 500 million) for rupee term loan from Yes Bank Limited, (refer note 42(A) (ii))

c) Term loan from Indusind Bank amounting to Rs, 656.4 million (previous year Nil) is secured by way of mortgage created on related property, (refer note 42(A) (iii))

d) With respect to the term loans from banks obtained by erstwhile Trident Corporation Limited (the Amalgamating Company), amalgamated with the Company with effect from the appointed date i.e. April 1,2014, the same are secured by way of equitable mortgage created on the immovable properties including all buildings, structures, plant and machinery attached thereon and hypothecation of all the movable properties including movable machinery, spares, tools and accessories stocks of raw materials, semi finished goods, consumable stores and other moveable’s of the Amalgamating Company, as existing immediately prior to the amalgamation of the Amalgamating Company with the Company, (refer note 42(A) (iv))

The interest rates range from 4.7% to 10.4% per annum before subsidy.

a) Defined contribution plans

The Company makes contribution towards employees’ provident fund scheme. Under the scheme, the Company is required to contribute a specified percentage of salary, as specified in the rules of the scheme. The Company has recognized Rs, 184.3 million (Previous year Rs, 180.5 million) during the year as expense towards contribution to this plan. Rs, 2.2 million (Previous year Rs, 2.3 million) has been included under Property, plant and equipment / Capital work in progress.

b) Defined benefit plans Gratuity scheme

The Company has a defined gratuity plan (Funded) and the Gratuity plan is governed by The Payment of Gratuity Act 1972 (“Act”). Under the Act, employee who has completed five years of service is entitled for specific benefit. The amount of benefit depends on respective employee’s salary, the years of employment and retirement age of the employee and the gratuity benefit is payable on termination/retirement of the employee. There is no maximum limit for the payment of gratuity benefit. The present value of obligation is determined based on an actuarial valuation as at the reporting date using the Projected Unit Credit Method.

The fund has the form of an irrevocable trust and it is governed by Board of Trustees. The Board of trustees is responsible for the administration of the plan assets and for the definition of investment strategy. The scheme is funded with qualifying insurance policies. The Company is contributing to trusts towards the payment of premium of such company gratuity schemes.

The following table sets out the details of defined benefit plan and the amounts recognised in the financial statements:

NOTE 2 - EMPLOYEE BENEFITS (contd..)

VII Acturial risks

Through its defined benefit plans the Company is exposed to a number of risks, the most significant of which are detailed below: Interest 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.

Salary Inflation risk

Higher than expected increases in salary will increase the defined benefit obligation.

Demographic risk

This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal, disability and ret i reme nt. The effect ofthesedecrementsonthedefinedbenefitobligationisnotstraightforwardanddependsuponthecombination 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.

The sensitivity analysis presented above may not be representative of the actual changes in the defined benefit obligations as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumption may be correlated.

Furthermore, in presenting the above sensitivity analysis the present value of the defined benefit obligations has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognised in the financial statements.

There was no change in the methods and assumption used in preparing the sensitivity analysis from prior years.

The sensitivity analysis above have been determined based on reasonably possible changes of the respective assumption occurring at the end of the reporting period, while holding all other assumptions constant.

The following benefit payments are expected in future years:

The average duration of the defined benefit obligation at the end of the reporting period is 13 years (previous year 11 years) The expected employer contribution for the year ended March 31,2018 is Nil (previous year Rs, 155.9 million)

* comprises of:

(i) Rs, 111.2 million (previous year Rs, 80.0 million) on specific borrowings taken.

(ii) Rs, 21.2 million (previous year Nil) on general borrowings for other qualifying assets using the weighted average interest rate applicable during the year which is 9.6% p.a

NOTE 3 - RELATED PARTY DISCLOSURES

The related party disclosures as per Ind AS-24 are as under:

A. Name of related party and nature of related party relationship (i) Enterprises where control exists:

a) Enterprise that controls the Company

- Madhuraj Foundation (directly or indirectly holds majority voting power)

b) Enterprise that have significant influence over the Company

- Trident Group Limited

c) Enterprises that are controlled by the Company i.e. subsidiary company.

- Trident Global Corp Limited

- Trident Europe Limited

(ii) Other related parties where transactions have taken place during the year:

a) Enterprises under the common control as the Company

- Trident Institute of Social Sciences

- Trident Industrial Corp Limited

- Trident Capital Limited

- Trident Corp Limited

- Trident Corporate Solutions Limited

- Trident Corporate Services Limited

- Trident Comtrade LLP

b) Enterprise on which Company exercises significant influence

Trident Global, Inc. USA Trident Infotech, Inc. USA

- Lotus Texpark Limited

- Narmada Infrabuild Limited

c) Key management personnel and other relatives

- Ms. Pallavi Shardul Shroff- Chairperson

- Mr. Raj inder Gupta- Co-Chairman

- Mr. Rajiv Dewan- Director

- Mr. Deepak Nanda- Managing Director Mr. Gunjan Shroff-CFO

- Ms. Ramandeep Kaur (w.e.f. January 18, 2017)- Company Secretary

- Mr. Pa wan Babbar (ceased to be Company Secretary of the Company w.e.f. December 31,2016) - Company Secretary

- Mr. Surender Kumar Tuteja (ceased to be Director of the Company w.e.f. January 20,2017)- Director Mr. Dinesh Kumar M ittal (w.e.f August 12,2017)- Director

Mr. Abhishek Gupta - Relative Ms. Madhu Gupta - Relative

- Ms. Gayatri Gupta - Relative

d) Post Employment Benefit Plans

- TridentTrust

* Gratuity and Leave benefits are actuarialy determined on overall basis and hence not separately provided.

C. The amounts outstanding are unsecured and will be settled in cash except Rs, 49.1 million (Previous year Nil) given to Madhuraj Foundation being advance given against purchase of property. No guarantees have been given or received except given for Lotus Temper Limited (as mentioned in Note no. 32 above). No expense has been recognised in the current or prior years for bad or doubtful debts in respect of the amounts owed by related parties. Further, the Company has executed a non-disposal undertaking in favour of various banks that have provided financial assistance to the Lotus Texpark Limited.

I Segment Accounting Policies:

a. Product and Services from which reportable segment derive their revenues (Primary Business Segments)

Based on the nature and class of product and services, their customers and assessment of differential risks and returns and financial reporting results reviewed by Chief Operating Decision Maker (CODM), the Company has identified the following business segments which comprised:

Textiles : Yarn, Towel, Bedsheets, Dyed Yarn manufacturing (Including utility services)

Paper and Chemical: Paper and Sulphuric Acid (Including utility services)

Till the previous year, the Company was showing “Sale of software and related services” as a saperate segment, however, CODM does not consider the same as separate segment and hence the same is included under unallocated segment in the previous year as well as current year.

b. Geographical segments (Secondary Business Segments)

The geographical segments considered and reviewed by Chief Operating Decision Maker for disclosure are based on markets, broadly as under:

India

USA

Rest of the world

c. Segment accounting policies

Segment accounting policies: In addition to the significant accounting policies applicable to the business segment as set out in note 2, the accounting policies in relation to segment accounting are as under:

i. Segment assets and liabilities:

Segment assets include all operating assets used by a segment and consist principally of cash, debtors, inventories and Property, Plant and Equipment including capital work in progress, net of allowances and provisions, which are reported as direct offset in the balance sheet. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities.

ii Segment revenue and expenses:

Joint revenue and expenses of segments are allocated amongst them on reasonable basis. All other segment revenue and expenses are directly attributable to the segments.

iii Inter segment sales:

Inter segment sales are accounted for at cost plus appropriate margin (transfer price) and are eliminated in consolidation.

iv Segment results:

Segment results represents the profit before tax earned by each segment without allocation of central administration costs, other non-operating income as well as finance costs. Operating profit amounts are evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance.

* Excludes financial instruments and post-employment benefits assets.

Information about major customers Refer Note45 (Credit Risk)

NOTE 4 - LEASES AS LESSEE

The Company has entered into operating lease agreements for taking various office premises, guest houses, factory premises (including plant & equipment) on operating lease. The lease rentals charged to the statement of profit and loss during the year is Rs, 101.4 million (Previous year Rs, 119.8 million).

The operating lease arrangements, are renewable on a periodic basis and leases extend unto a maximum of ten years from their respective dates of inception.

NOTE 5 - EMPLOYEES¹ STOCK OPTION PLANS

The erstwhile Compensation Committee of Board of Directors of the Company has granted options to the employees pursuant to Trident Employees Stock Options Plan 2007 (‘the Plan’) on July 09, 2007 (Grant I) and July 23, 2009 (Grant II). These options were granted at Rs, 17.55 and Rs, 11.20 per option respectively, being the latest available closing market price prior to the date of grant of options in accordance with SEBI guidelines. The quoted price of share on grant and the exercise price of option is equal and therefore there is no impact on statement of profit and loss due to Employee Share-based options as the Company is following intrinsic value method.

The Company has allotted 16,307 equity shares (previous year 208,234 equity shares) to employees during the year under the Trident Employees Stock Options Plan, 2007.

Capital management

For the purpose of Company’s capital management, capital includes Issued Equity capital and all reserves attributable to equity holders of the Company

The Company’s capital management objectives are:

- to ensure the Company’s ability to continue as a going concern

- to provide an adequate return to shareholders by pricing products and services commensurately with the level of risk.

The Company manages capital risk in order to maximize shareholders ‘profit by maintaining sound/optimal capital structure through monitoring of financial ratios, such as net debt-to-equity ratio on a monthly basis and implements capital structure improvement plan when necessary. There is no change in the overall capital risk management strategy of the Company compared to last year. Debt-to-equity ratio as of March 31,2018 and March 31,2017 is as follows:

The management assessed that fair value of trade receivables, cash and cash equivalents, other bank balances, other current financial assets, short term borrowings, trade payables and other current financial liabilities (except derivative financial liabilities) approximate their carrying amounts largely due to short-term maturities of these instruments.

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.

Financial Risk Management Framework

The Company’s principal financial liabilities, other than derivatives, comprise loans and borrowings, 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 and other receivables, receivables from government authorities, security deposits and cash and cash equivalents that derive directly from its operations. The Company also holds investments and enters in to derivative transactions.

The Company’s corporate treasury function provides services to the business, co-ordinates access to domestic and international financial markets, monitors and manages the financial risks relating to the operations of the Company through internal risk reports which analyse exposures by degree and magnitude of risks. These risks include market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

The Company seeks to minimise the effects of these risks by using derivative financial instruments to hedge risk exposures. The Company does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes. The Corporate Treasury function reports quarterly to the Board of Directors of the Company for monitoring risks and reviewing policies implemented to mitigate risk exposures.

CREDIT RISK

Credit risk arises when a counterparty defaults on its contractual obligations to pay resulting in financial loss to the Company The Company has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults.

The maximum exposure to the credit risk at the reporting date is primarily from trade receivables amounting to Rs, 4,777.6 million and Rs, 3,816.8 million as of March 31, 2018 and March 31, 2017, respectively. Trade receivables consist of a large number of customers, spread across diverse industries and geographical areas. Credit risk has always been managed by the group through credit approvals, establishing credit limits and continuously monitoring the credit worthiness of customers to which the Company grants credit terms in the normal course of business.

Credit Risk Exposure

The Company has used a practical expedient by computing the expected loss allowance for trade receivables based on historical credit loss experience and adjustments for forward looking information

The allowance for lifetime expected credit loss on customer balances for the year ended March 31, 2018 was Rs, 6.3 million. The allowance for lifetime expected credit loss on customer balances for the year ended March 31,2017 was Rs, 91.0 million.

LIQUIDITY RISK

(i) Liquidity risk management

The Company’s objective is to maintain optimum levels of liquidity to meet its cash and collateral requirements at all times. The Chief Financial Officer of the Company is responsible for liquidity risk management who has established an appropriate liquidity risk management framework for the management of the Company’s short, medium and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities. The Chief Financial Officer reports the same to the Board of Directors on quarterly basis.

(ii) Maturities of financial liabilities

The following tables detail the Company’s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment period s. The amount disclosed in the tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay The tables include both interest and principal cash flows.

Derivative financial instruments

The Company holds derivative financial instruments such as foreign currency forward contracts to mitigate the risk of changes in exchange rates on foreign currency exposures. The counterparty for these contracts is generally a bank or a financial institution. These derivative financial instruments are values based on quoted prices for similar assets and liabilities in active markets or inputs that are directly or indirectly observable in the marketplace.

MARKET RISK

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk: currency risk and interest rate risk. Financial instruments effected by market risk includes loan and borrowings and derivative financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return. The Company uses derivatives to manage market risks. Derivatives are only used for economic hedging purposes and not as speculative investments. All such transactions are carried out within the guidelines set by the Board of Directors and Risk Management Committee.

There has been no significant changes to the Company’s exposure to market risk or the methods in which they are managed or measured.

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 undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise. The Company’s exposure to currency risk relates primarily to the Company’s operating activities and borrowings when transactions are denominated in a different currency from the Company’s functional currency.

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

For the year ended March 31,2018, every one ru pee depreciate on/appreciation in the exchange rate against US$, might have affected the Company’s incremental margins (profit as a percentage to revenue) approximately by 0.60%. The Company’s exposure to foreign currency changes for all other currencies is not material.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s long-term debt obligations with floating interest rates. The borrowings as at March 31, 2018 is Rs, 27,998.7 million which are interest bearing and interest rates are variable.

Interest rate sensitivity

For the year ended March 31, 2018, every 1 percentage increase/decrease in weighted average bank interest rate might have affected the Company’s incremental margins (profit as a percentage to revenue) approximately by 0.60 %.

Price risk

The Company’s investments in listed securities, mutual funds and other funds are susceptible to market price risk arising from uncertainties about future values of the investment securities. The Company manages the price risk through diversification and by placing limits on individual and total equity instruments. Reports on the portfolio are submitted to the Company’s senior management on a regular basis.

At the reporting date, the exposure to listed equity securities at fair value wasRs, 142.0 million. A decrease of 5% on the NSE market index could have an impact of approximately of Rs, 7.1 million on the OCI or equity attributable to the Company. An increase of 5% in the value of the listed securities would also impact OCI and equity by the same amount. These changes would not have an effect on profit or loss. At the reporting date, the exposure in mutual funds and other funds is Rs, 120.3 million. A decrease or increase in NAVof 5% mutual funds and other funds could have an impact of approximately of Rs, 6.02 million on the profit or loss.

NOTE 6-

The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.

NOTE 7-

The Board of Directors has recommended a final dividend of 3% (Rs,0.30 per equity share of Rs, 10/- each) for the financial year 2017-18 subject to the approval of the shareholders in the forthcoming Annual General Meeting of the Company. This final dividend is in addition to the two interim dividends of 6% each (Rs,0.60 per equity shares of Rs, 10/- each) declared during the financial year 2017-18. The total dividend for the financial year 2017-18 is 15% (Rs, 1.50 per equity shares of Rs, 10/- each).

NOTE 8-

Revenue from operations for the periods up to 30June2017 includes excise duty, wherever not exempted. From 01 July 2017 onwards, the excise duty and most indirect taxes in India have been replaced with Goods and Service Tax (GST). The Company collects GST on behalf of the Government. Hence, GST is not included in Revenue from operations. In view of the said change in indirect taxes, Revenue from operations for the year ended 31 March 2018 is not comparable with Revenue from operations for the year ended 31 March 2017.

NOTE 9 -

Disclosure required under Section 186(4) of the Companies Act, 2013

The Company has given corporate guarantees for business purposes to Punjab National Bank on behalf of Lotus Temper Limited, associate of the Company.

NOTE 10 -

Employee benefits expense is lower during the current year compared to previous year due to rationalization of manpower cost including structuring of salary and manpower.

NOTE 11-

The figures of previous year were audited by Deloitte Haskins & Sells, Chartered Accountants and has been taken as per the figures audited by them and relied upon by the current statutory auditors.

NOTE 12-

Previous year’s figures have been regrouped/reclassified wherever necessary to correspond with the current year’s classification/ disclosure.

---

Mar 31, 2017

The Company has adopted the provisions of para 46/46A of AS 11 "The Effects of Changes in Foreign Exchange Rates” (refer note

1 (d)), accordingly, the exchange differences on reinstatement/settlement of long term foreign currency borrowings (drawn up to March 31, 2016) relating to acquisition of depreciable property, plant and equipment are adjusted to the cost of the respective assets and depreciated over the remaining useful life of such assets.

(e) Financial liabilities and equity instruments

(1) Classification as debt or equity

Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

(2) Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the Company are recognized at the proceeds received, net of direct issue costs.

Repurchase of the Company''s own equity instruments is recognized and deducted directly in equity. No gain or loss is recognized in profit or loss on the purchase, sale, issue or cancellation of the Company’s own equity instruments.

(3) Financial liabilities at amortized cost

Financial liabilities that are not held-for-trading and are not designated as at FVTPL are measured at amortized cost at the end of subsequent accounting periods. The carrying amounts of financial liabilities that are subsequently measured at amortized cost are determined based on the effective interest method.

The effective interest method is a method of calculating the amortized cost of a financial liability and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts] through the expected life of the financial liability or, where appropriate, a shorter period, to the net carrying amount on initial recognition.

(4) Financial liabilities at FVTPL

Financial liabilities at FVTPL are stated at fair value, with any gains or losses arising on remeasurement recognized in profit or loss. The net gain or loss recognized in statement of profit or loss incorporates any interest paid on the financial liability and is included as a line item in the ''Other income''.

P Earnings per share

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

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

Q Operating cycle

Based on the nature of products/activities of the Company and the normal time between acquisition of assets and their realization in cash or cash equivalents, the Company has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non-current.

R Derivative Contracts

The derivative contracts i.e forward cover contacts are initially recognized at fair value at the date the derivative contracts are entered into and are subsequently premeasured to their fair value at the end of each reporting period. The resulting gain or loss is recognized in statement of profit or loss immediately.

S Fair Value Measurement

Fair Value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date.

Fair value measurement of the financial instruments is classified in various fair value hierarchies based on the following three levels:

Level 1: Quoted prices (unadjusted] in active market for identical assets or liabilities.

Level 2: Inputs other than quoted price including within level 1 that are observable for the asset or liability, either directly (i.e. as prices] or indirectly (i.e. derived from prices].

The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

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

If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case with listed instruments where market is not liquid and for unlisted instruments.

The fair value of trade receivables and payables is considered to be equal to the carrying amounts of these items due to their short - term nature.

4 First time adoption of Ind-AS

These financial statements of the Company as at and for the year ended March 31, 2017 have been prepared in accordance with Ind AS . For the purpose of transition to Ind AS, the Company has followed the guidance prescribed in Ind AS 101 - First Time adoption of Indian Accounting Standard, with April 1, 2015 as the transition date and IGAAP as the previous GAAP.

The transition to Ind AS has resulted in changes in the presentation of the financial statements, disclosures in the notes there to and accounting policies and principles. The accounting policies set out in Note 2.1 have been applied in preparing the financial statements for the year ended March 31, 2017 and the comparative information. An explanation of how the transition from previous GAAP to Ind AS has affected the Company’s Balance Sheet, Statement of Profit and Loss and cash flow is set out in note 49. Optional exemptions and certain exceptions on first time adoption of Ind AS availed in accordance with ind AS 101 have been set out in note 2.2.1.

5 Optional exemptions and certain exceptions availed on first time adoption of Ind-AS 101

(a) Equity instruments at fair value through other comprehensive income

Under Ind AS 109, at initial recognition of a financial asset, an entity may make an irrevocable election to present subsequent changes in the fair value of an investment in an equity instrument in other comprehensive income. Ind AS 101 allows such designation of previously recognized financial assets as '' fair value through comprehensive income'' on the basis of the facts and circumstances that existed at the date of transition to Ind AS.

Accordingly, the Company has designated investment in "IOL Chemicals and Pharmaceuticals Limited” as at FVTOCI on the basis of the facts and circumstances that existed at the date of transition to Ind AS.

(b) Classification of debt instruments

The Company has determined the classification of debt instruments in terms of whether they meet the amortized cost criteria or the FVTOCI criteria based on facts and circumstances that existed as of the transition date.

(c) Past business combinations

The Company has elected not to apply Ind AS 103 - Business Combinations retrospectively to past business combinations that occurred before the transition date of April 1, 2015. Consequently,

- The Company has kept the same classification for the past business combinations as in its previous GAAP financial statements;

- The Company has not recognized assets and liabilities that were not recognized in accordance with previous GAAP in the consolidated balance sheet of the acquirer and would also not qualify for recognition in accordance with Ind AS in the separate balance sheet of the acquire.

(d) Property, Plant and Equipment

- The Company has consistently followed the provisions of para 46/46A of AS 11 "The Effects of Changes in Foreign Exchange Rates”(as stipulated in previous GAAP], accordingly, the exchange differences on reinstatement/settlement of long term foreign currency borrowings (drawn upto March 31, 2016] relating to acquisition of depreciable Property, Plant and Equipment are adjusted to the cost of the respective assets and depreciated over the remaining useful life of such assets.

- The Company has elected to continue with the carrying value of all its property, plant and equipment (other than land) and intangible assets recognized as of April 1, 2015 (transition date) measured as per the previous GAAP and used that carrying value as its deemed cost as of the transition date. In case of land the Company has elected to opt for fair valuation as at April 1, 2015 in accordance with Ind AS 101.

(e) Share based payment transactions

The Company has elected not to apply Ind AS 102 Share based payment to equity instruments that vested before date of transition to Ind AS (i.e April 1, 2015).

6 Standards issued but not yet effective

in March 2017, the Ministry of Corporate Affairs issued the Companies (Indian Accounting Standards) (Amendments) Rules, 2017, notifying amendment to ind AS 7, ''Statement of cash flows''. The amendment is applicable to the Company from April 1, 2017.

Amendment to Ind AS 7:

The amendment to Ind AS 7 requires the entities to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes, suggesting inclusion of a reconciliation between the opening and closing balances in the balance sheet for liabilities arising from financing activities, to meet the disclosure requirements.

The Company is evaluating the requirements of the amendment and the effect on the financial statements is being evaluated.

7Key sources of estimation uncertainty

in the application of the Company accounting policies, the management of the Company is required to make judgments, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

The following are the areas of estimation uncertainty and critical judgments that the management has made in the process of applying the Company’s accounting policies and that have the most significant effect on the amounts recognized in the financial statements:

Useful lives of Intangible assets

The intangible assets are amortized over the estimated useful life. The estimated useful life and amortization method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis.

Defined benefit plans

The cost of the defined benefit plan and other post-employment benefits and the present value of such 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, mortality rates and future pension increases. 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.

Useful lives of depreciable tangible assets

Management reviews the useful lives of depreciable assets at each reporting date. As at March 31, 2017 management assessed that the useful lives represent the expected utility of the assets to the Company. Further, there is no significant change in the useful lives as compared to previous year. Fair value measurement of Land

Fair value of the Company''s land as at April 1, 2015 has been arrived at on the basis of a valuation carried out as on the respective date by an independent valuer not related to the Company. The fair value was derived using the market comparable approach based on recent market prices without any significant adjustments being made to the market observable data. In estimating the fair value of the properties, the highest and best use of the properties is their current use.

Notes:

1. Additions to plant and machinery include exchange fluctuation loss of Rs, 13.1 million (Previous yearRs, 105.5 million).

2. Adjustment represents reclassification of certain items of Property, plant and equipment within the respective class of property, plant and equipment.

3. The tangible assets are hypothecated / mortgaged to secure borrowings of the Company (refer note 16).

4. In accordance with Ind AS 101, the Company has carried out fair valuation of all its land consequent to which value of land increased by Rs 8,782.3 million.

5. All property, plant and equipment and intangible assets (other than land) carried in balance sheet as at April 1, 2015 are in accordance with previous GAAP. The Company has elected to regard such carrying value as deemed cost at the date of transition.

Notes:

1. Additions to plant and machinery include exchange fluctuation loss of Rs, 105.5 million (Previous year Rs, 125.5 million).

2. Adjustment represents reclassification of certain items of Property, plant and equipment with in the respective class of property, plant and equipment.

3. Sales / discard to plant and machinery include exchange fluctuation gain of Rs, Nil (Previous year Rs, 4.7 million).

4. The tangible assets are hypothecated / mortgaged to secure borrowings of the Company (refer note 16).

5. In accordance with Ind AS 101, the Company has carried out fair value of all its land consequent to which value of land increased by Rs, 8,782.3 million.

6. All property, plant and equipment and intangible assets (other than land) carried in balance sheet as at April 1, 2015 are in accordance with previous GAAP. The Company has elected to regard such carrying value as deemed cost at the date of transition.

Term loans

Term loans from banks and financial institutions are secured by way of equitable mortgage created or to be created on all the present and future immovable properties including all land, buildings, structures, all plant and equipment attached thereon of the Company and hypothecation of all the movable properties including movable machinery, spares, tools and accessories, etc., present and future, subject to prior charges created and / or to be created in favour of the Company''s bankers on stocks of raw materials, semi finished and finished goods, consumable stores and other movable, as may be required for working capital requirements in the ordinary course of business. The mortgages and charges referred to above rank pari-passu among the lenders (refer note 43(A), 43(B) and 43(C) for repayment terms).

With respect to the term loans from banks obtained by erstwhile Trident Corporation Limited (the Amalgamating Company), amalgamated with the Company with effect from the appointed date i.e. April 1, 2014, the same are secured by way of equitable mortgage created on the immovable properties including all buildings, structures, plant and equipment attached thereon and hypothecation of all the movable properties including movable machinery, spares, tools and accessories stocks of raw materials, semi finished goods, consumable stores and other moveable’s of the Amalgamating Company, as existing immediately prior to the amalgamation of the Amalgamating Company with the Company.

Vehicles loans

Vehicle loans are secured by hypothecation of vehicles acquired against such loans (refer note 43(D) for repayment terms).

For the current maturities of long-term borrowings, refer note 22 : other financial liabilities-current.

Redeemable preference shares were issued in FY 2015-16 for term of 20 years, subject to an option with holder of the instrument to redeem preference shares prior to their maturity at the end of every year from the date of allotment, and are cumulative with a non discretionary dividend of 6%. These redeemable preference shares do not contain any equity component.

As on August 9, 2016, all of the issued preference shares were redeemed pursuant to exercising of the option by the holders of such preference shares.

* These matters are subject to legal proceedings in the ordinary course of business. In the opinion of the management, legal proceedings when ultimately concluded will not have a material effect on the results of operations or financial position of the Company.

^A The above guarantees have been provided for business purposes to Punjab National Bank on behalf of Lotus Texpark Limited.

# The Company has other commitments for purchase/sale orders which are issued after considering requirements as per the operating cycle for purchase/sale of goods and services, and employee benefits. The Company does not have any long term commitment or material non cancellable contractual commitments/ contracts which might have a material impact on the financial statements other than commitment given for advertisement in print media of Rs, 13.9 million (Previous year Rs, 31.6 million], for which advance has been given by the Company.

^N0TE''⁸ (Contd.)

b) Defined benefit plans

Gratuity scheme

The amount of gratuity has been computed based on respective employee''s salary and the years of employment with the Company. Gratuity has been accrued based on actuarial valuation as at the balance sheet date, carried out by an independent actuary. The amount is funded through trusts'' Company gratuity schemes managed by Life Insurance Corporation of India, SBI Life Insurance Company Limited, Kotak Mahindra and Bajaj Allianz. The Company is contributing to trust towards the payment of premium of such Company gratuity schemes.

The following table sets out the details of defined benefit retirement plans and the amounts recognized in the financial statements:

I Components of Employer Expense

VII Actuarial risks

Through its defined benefit plans the Company is exposed to a number of risks, the most significant of which are detailed below:

Interest rate risk

The defined benefit obligation is calculated using a discount rate based on government bonds. If bond yields fall, the defined benefit obligation will tend to increase.

Salary Inflation risk

Higher than expected increases in salary will increase the defined benefit obligation.

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.

The sensitivity analysis presented above may not be representative of the actual changes in the defined benefit obligations, as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumption may be correlated.

Furthermore, in presenting the above sensitivity analysis the present value of the defined benefit obligations has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognized in the financial statements.

There was no change in the methods and assumption used in preparing the sensitivity analysis from prior years.

The sensitivity analysis above have been determined based on reasonably possible changes of the respective assumption occurring at the end of the reporting period, while holding all other assumptions constant.

NOTE - 9

RELATEDPARTY DISCLOSURES

The related party disclosures as per Ind AS-24 are as under:

A. Name of related party and nature of related party relationship

(i) Enterprises where control exists

a| Enterprise that controls the Company

- Madhuraj Foundation [directly or indirectly holds majority voting power] b| Enterprises that are controlled by the Company, i.e. subsidiary Company.

- Trident Global Corp Limited

- Trident Europe Limited

(ii) Other related parties where transactions have taken place during the year: a| Enterprises under the common control as the Company.

- Trident Group Limited

- Trident Capital Limited

- Trident Institute of Social Sciences

b| Enterprise on which Company exercises significant influence

- Trident Global, Inc.

- Trident Infotech, Inc.

- Lotus Texpark Limited

- Narmada Infrabuild Limited

c| Key management personnel and other relatives

- Ms Pallavi Shardul Shroff

- Mr Rajinder Gupta

- Mr Rajiv Dewan

- Mr Deepak Nanda

- Mr Gunjan Shroff

- Ms Ramandeep Kaur (w.e.f. January 18, 2017]

- Mr Pawan Babbar (ceased to be Company Secretary of the Company w.e.f. December 31, 2016]

- Mr Sure nder Kumar Tuteja (ceased to be Director of the Company w.e.f. January 20, 2017] d| Post Employment Benefit Plans

- Trident Trust

NOTE - 10

SEGMENT INFORMATION

I Segment Accounting Policies:

a. Product and Services from which reportable segment derive their revenues.

Based on the nature and class of product and services, their customers and assessment of differential risks and returns and financial reporting results reviewed by chief operating decision maker, the Company has identified the following business segments which comprised:

Textiles : Yarn, Towel, Bedsheets, Dyed Yarn manufacturing (Including utility service]

Paperand Chemicals : Paperand Sulphuric Acid (Including utility service]

Others : Sale of software and related services

b. Geographical segments

The geographical segments considered for disclosure are based on markets, broadly as under:

- India »USA - Rest of the world

c. Segment accounting policies

Segment accounting policies: In addition to the significant accounting policies applicable to the business segment as set out in note 2, the accounting policies in relation to segment accounting are as under:

i. Segment assets and liabilities:

Segment assets include all operating assets used by a segment and consist principally of cash, debtors, inventories and Property, Plant and Equipment including capital work in progress, net of allowances and provisions, which are reported as direct offset in the balance sheet. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities.

ii Segment revenue and expenses:

Joint revenue and expenses of segments are allocated amongst them on reasonable basis. All other segment revenue and expenses are directly attributable to the segments.

iii Inter segment sales:

Inter segment sales are accounted for at cost and are eliminated in consolidation.

iv Segment results :

Segment results represents the profit before tax earned by each segment without allocation of central administration costs, other income as well as finance costs. Operating profit amounts are evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance.

^N0TE-*¹¹ (Contd.)

Financial Risk Management Framework

The Company''s Corporate Treasury function provides services to the business, co-ordinates access to domestic and international financial markets, monitors and manages the financial risks relating to the operations of the Company through internal risk reports, which analyse exposures by degree and magnitude of risks. These risks include market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

The Company seeks to minimize the effects of these risks by using derivative financial instruments to hedge risk exposures. The Company does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes. The Corporate Treasury function reports quarterly to the Board of Directors of the Company for monitoring risks and reviewing policies implemented to mitigate risk exposures.

CREDIT RISK

Credit risk arises when a counter-party defaults on its contractual obligations to pay resulting in financial loss to the Company. The Company has adopted a policy of only dealing with creditworthy counter parties and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults.

The maximum exposure to the credit risk at the reporting date is primarily from trade receivables amounting to Rs, 3,816.8 million and Rs, 2,580.8 million as of March 31, 2017 and March 31, 2016, respectively. Trade receivables consist of a large number of customers, spread across diverse industries and geographical areas. Credit risk has always been managed by the group through credit approvals, establishing credit limits and continuously monitoring the credit worthiness of customers to which the Company grants credit terms in the normal course of business.

Credit Risk Exposure

The Company has used a practical expedient by computing the expected loss allowance for trade receivables based on historical credit loss experience and adjustments for forward looking information.

The allowance for lifetime expected credit loss on customer balances for the year ended March 31, 2017 was Rs, 91.0 million. The allowance for lifetime expected credit loss on customer balances for the year ended March 31, 2016 was Rs, 101.4 million.

LIQUIDITY RISK

|i) Liquidity risk management

The Chief Financial Officer of the Company is responsible for liquidity risk management who has established an appropriate liquidity risk management framework for the management of the Company''s short, medium and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities. The Chief Financial Officer reports the same to the Board of the Directors on quarterly basis.

Iii) Maturities of financial liabilities

The following tables detail the Company''s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The amount disclosed in the tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The tables include both interest and principal cash flows. To the extent that interest flows are floating rate, the undiscounted amount is derived from interest rate curves at the end of the reporting period. The contractual maturity is based on the earliest date on which the Company may be required to pay.

MARKET RISK

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk: currency risk and interest rate risk. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return. The Company uses derivatives to manage market risks. Derivatives are only used for economic hedging purposes and not as speculative investments. All such transactions are carried out within the guidelines set by the Board of Directors and Risk Management Committee.

There has been no significant changes to the Company''s exposure to market risk or the methods in which they are managed or measured. CURRENCY RISK

The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise. The Company''s exposure to currency risk relates primarily to the Company''s operating activities and borrowings when transactions are denominated in a different currency from the Company''s functional currency.

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

The carrying amounts of the Company''s foreign currency denominated monetary assets and monetary liabilities at the end of the reporting period are as follows.

For the year ended March 31, 2017, everyone rupee depreciation/appreciation in the exchange rate against U.S. dollar, might have affected the Company’s incremental operating margins approximately by 0.66 % the Company''s exposure to foreign currency changes for all other currencies is not material. Interest rate risk

I nterest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company’s long-term debt obligations with floating interest rates. Interest rate sensitivity

For the year ended March 31,2017, every 1 percent increase/decrease in weighted average bank interest rate might have affected the Company’s incremental operating margins approximately by 0.65 %.

NOTES TO RECONCILIATION

a] Under previous GAAP, Leasehold land was recorded and classified as fixed assets. However as per Ind AS, Leasehold land is recognized as operating lease as per definition and classification criteria and have been reclassified to other noncurrent assets/other current assets. The net effect of this change is decrease in property, plant & equipment by Rs, 659.2 million as at March 31, 2016 (Rs, 666.7 million as at April 1, 2015] , increase by Rs, 651.7 million as at March 31, 2016 (Rs, 659.2 million as at April 1, 2015] in other noncurrent assets and increase by Rs,7.5 million as at March 31, 2016 (Rs, 7.5 million as at April 1, 2015] in other current assets. There is increase in other expenses by Rs, 7.5 million and decrease in depreciation by Rs, 7.5 million for the year ended March 31, 2016.

b] Under previous GAAP, grant related to fixed assets were adjusted with cost of fixed assets and grants received in the form of promoters contribution were disclosed under Reserves and Surplus. Under Ind AS, grant related to property, plant and equipment are shown as deferred revenue grant. The effect of this change results in increase in property, plant & equipment by Rs, 535.1 million as at March 31,2016 (Rs, 61.5 million as at April 1,2015], increase in capital work in progress by Rs, Nil as at March 31, 2016 (Rs, 27.3 million as at April 1, 2015], decrease in total equity by Rs, 504.8 million as at March 31, 2016 (Rs, Nilas at April 1, 2015], increase in noncurrent liabilities by Rs, 922.9 million as at March 31, 2016 (Rs, 68.8 million as at April 1, 2015] and increase in other current liabilities by Rs, 117.1 million as at March 31, 2016 (Rs, 20.0 million as at April 1,2015).

c] As per Ind AS 101 - First time adoption of Indian Accounting Standards, company had opted for fair valuation of its land as deemed cost on the date of transit ion. The effect of this change results into increase in property, plant and equipment by Rs, 8,782.3 million as at March 31, 2016 and April 1, 2015 with corresponding increase in other equity by Rs, 7,684.1 million as at March 31, 2016 (Rs, 7,582.4 million as at April 1, 2015] and increase in deferred tax liabilities by Rs, 1,098.2 million as at March 31, 2016 (Rs, 1,200.0 million as at April 1, 2015]. There had been decrease in deferred tax by Rs, 101.8 million for the year ended March 31, 2016.

d] Under previous GAAP, processing fees related to loans related to fixed assets were capitalized in fixed assets. Under Ind AS, such loans are accounted at amortized cost using effective interest rate method. The net effect of change is decrease in Property, plant and equipment by Rs, 46.8 million as at March 31, 2016 (Rs, 21.6 million as at April 1, 2015] and decrease in capital work in progress by Rs, 1.0 million as at March 31, 2016 (Rs, 31.0 million as at April 1,2015] and increase in other current assets by Rs, 35.6 million as at March 31, 2016 (Rs, 45.5 million as at April 1, 2015] and decrease in total equity by Rs, 12.2 million as at March 31,2016. There had been increase in finance cost by Rs, 10.9 million and decrease in depreciation by Rs, 5.7 million and decrease in deferred tax liabilities by Rs, 3.7 million as at March 31, 2016 and decrease in deferred tax by Rs, 3.7 million for the year ended March 31,2016 and decrease in total equity by Rs, 7.0 million as at April 1, 2015.

e] Under previous GAAP, the Company has recognized the capital spares under Inventory. Under Ind AS, such capital spares qualifies as property, plant and equipment as the Company expects to use them during more than one period. The net effect of this change is increase in Property, plant and equipment by Rs, 16.5 million as at March 31, 2016 (Rs, 17.6 million as at April 1, 2015] and decrease in Inventories by Rs, 26.5 million as at March 31, 2016 (Rs, 26.0 million as at April 1, 2015] and decrease in total equity by Rs, 10.0 million as at March 31, 2016 and decrease in deferred tax liabilities by Rs, 1.5 million as at March 31, 2016 (Rs, 2.9 million as at April 1, 2015]. There had been increase in depreciation by Rs, 3.1 million and decrease in other expenses by Rs, 1.4 million and increase in deferred tax by Rs, 1.4 million for the year ended March 31, 2016 and decrease in total equity by Rs, 8.3 million as at April 1,2015.

f] Under previous GAAP, investments were carried at cost. Under ind AS, investments (other than investments in equity instruments of subsidiaries and associates] are carried at fair value through Profit or loss and Other comprehensive income. Net effect of this change is increase in non current investments by Rs, 102.5 million as at March 31,2016 (Rs, 16.9 million as at April 1, 2015], increase in current investments by Rs, 0.1 million as at March 31, 2016 (Rs, 0.2 million as at April 1, 2015] and increase in total equity by Rs, 102.7 million as at March 31, 2016 (Rs, 17.1 million as at April 1, 2015). [Further, investment in equity shares of IOL Chemicals and Pharmaceuticals Limited is reclassified from current investment to non current investment resulting in increase in non current investments by Rs, 50.0 million as at March 31, 2016 (Rs, 50.0 million as at April 1, 2015) and decrease in current investments by Rs, 50.0 million as at March 31, 2016 (Rs, 50.0 million as at April 1, 2015]].

There had been increase in other income by Rs, 0.1 million and Other comprehensive income by Rs, 85.4 million for the year ended march 31, 2016 and increase in retained earnings by Rs, 15.8 million as at April 1, 2015 and increase in other comprehensive income by Rs, 1.3 million as at April 1, 2015.

g] Under previous GAAP, security deposits are carried at cost. Under Ind AS, these are carried at amortized cost. The effect of this change is decrease in other financial assets by Rs, 46.3 million as at March 31, 2016 (Rs, 52.6 million as at April 1, 2015] and increase in other noncurrent assets by Rs, 25.2 million as at March 31, 2016 (Rs, 33.9 million as at April 1, 2015) and increase in other current assets by Rs, 19.0 million as at March 31, 2016 (Rs, 17.0 million as at April 1, 2015] and decrease in total equity by Rs, 2.1 million as at March 31, 2016. There had been increase in other income by Rs, 17.2 million and other expenses by Rs, 17.4 million fortheyear ended March 31,2016 and decrease in retained earnings by Rs, 1.9 million as at April 1,2015 and decrease in deferred tax liabilities by Rs, 0.7 million as at March 31, 2016 (Rs, 0.7 million as at April 1, 2015).

h] Under previous GAAP, MAT credit entitlement was shown as long term loans and advances. Under Ind AS, MAT credit entitlement is recorded and classified as deferred tax assets. The effect of this change is decrease in other noncurrent assets and deferred tax liabilities by Rs, 1,247.9 million as at March 31, 2016 (Rs, 656.7 million as at April 1, 2015).

i] Under previous GAAP, trade receivables which have been transferred with recourse are disclosed as part of contingent liabilities. Under Ind AS, trade receivables which had been transferred with recourse should not be derecognized. The effect of this change is increase in trade receivables by Rs, 745.4 million as at March 31, 2016 (Rs, 703.3 million as at April 1, 2015) with corresponding increase in short-term bank borrowings by Rs, 745.4 million as at March 31, 2016 (Rs, 703.3 million as at April 1, 2015).

j] Under Ind AS, Book overdrafts which are repayable on demand and forms an integral part of an entity''s cash management system are included in cash and cash equivalents for the purpose of presentation of cash flows. Whereas under previous GAAP, there was no similar guidance and hence, book overdrafts were considered similar to other borrowings and the movements therein were reflected in cash flows from financing activities. Net effect of this change is decrease by Rs, Nil as at March 31, 2016 (Rs, 26.1 million as at April 1, 2015] in cash and cash equivalents with corresponding decrease in other financial liabilities.

k] Under previous GAAP, Mark-to-market gain/loss on derivative instruments were recognized to the extent of underlying asset and entire mark-to-market loss were recognized in profit and loss. Under Ind AS, entire gain/ loss on fair valuation of derivative instrument is recognized in statement of profit and loss. The effect of change is increase in other financial assets by Rs, 77.8 million as at March 31, 2016 (Rs, 42.3 million as at April 1, 2015) with corresponding increase in total equity and increase in deferred tax liabilities by Rs,26.9 million as at March 31, 2016 (Rs, 14.6 million as at April 1, 2015). There had been decrease in other expenses by Rs, 35.5 million and increase in deferred tax by Rs, 12.3 million for the year ended March 31, 2016 and increase in retained earnings by Rs, 42.3 million as at April 1, 2015.

I] Under previous GAAP, redeemable preference shares were classified as part of total equity Dividend paid on these preference shares were adjusted against retained earnings. However under Ind AS as these preference shares do not contain any equity component and hence, had been classified entirely as financial liability The resultant dividends had been recognized as finance cost in profit and loss. The net effect of this change is a decrease in total equity by Rs, 600.0 million as at March 31, 2016 (Rs, Nil as at April 1, 2015] with corresponding increase in financial liabilities and decrease in profit before tax as well as total profit and total equity by Rs, 21.8 million for the year ended March 31, 2016 and increase in financial liabilities by Rs, 18.1 million as at March 31, 2016 (Rs, NIL as at April 1, 2015] and increase in current provisions by Rs, 3.7 million as at March 31, 2016 (Rs, NIL as at April 1, 2015).

m] Under previous GAAP, actuarial gains and losses were recognized in profit and loss. Under Ind AS, the actuarial gains and losses form part of re measurement of net defined liability/asset which is recognized in other comprehensive income. Consequently, the tax effect of the same has also been recognized in other comprehensive income. The actuarial loss for the year ended March 31, 2016 was Rs, 40.4 million and tax effect was Rs, 14.0 million and deferred tax liabilities reduced by Rs, 14.0 million as at March 31, 2016.

n] Under previous GAAP, dividends on equity shares recommended by the board of directors after the end of reporting period but before the financial statements were approved for issue were recognized in the financial statements as a liability Under Ind AS, such dividends are recognized when declared by the members in annual general meeting. Effect of this change is increase in total equity by Rs, 178.6 million as at March 31, 2016 (Rs, NIL as at April 1, 2015], decrease in other financial liabilities by Rs, 148.4 million as at March 31,2016 (Rs, NIL as at April 1, 2015) and decrease in other current liabilities by Rs, 30.2 million as at March 31, 2016 (Rs, NIL as at April 1, 2015).

o) Under previous GAAP, treasury shares held with Trust under amalgamation scheme were recognized as current investment. Under Ind AS, such treasury shares are adjusted with other equity The effect is a decrease in current investment and total equity by Rs, 145.5 million as at March 31, 2016 (Rs, 145.5 million as at April 1, 2015). p] Under previous GAAP, revenue from sale of products was presented net of excise duty under revenue from operations. Whereas, under Ind AS, revenue from sale of products includes excise duty. The corresponding excise duty expense is presented separately on the face of the standalone statement of profit and loss. The effect of this is increase in revenue from operations by Rs, 455.5 million for the year ended March 31, 2016 but there is no impact on profit or loss for the year ended March 31, 2016.

q] Under previous GAAP, rebates and discounts on sale of goods are disclosed as other expenses. Under Ind AS, revenue is recognized at fair value, hence rebates and discounts are reduced from revenue from operations. The net effect of this is decrease in revenue from operations by Rs, 182.3 million and decrease in other expenses by Rs, 182.3 million for the year ended March 31, 2016. This change does not affect the net profit for the year ended March 31, 2016.

r] Under previous GAAP, there was no concept of other comprehensive income. Under Ind AS, specified items of income, expense, gains or losses are required to be presented in other comprehensive income.

NOTE-12

The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.

NOTE-13

The Board of Directors has recommended a final dividend of 3% (Rs, 0.30 per Equity Share of Rs, 10/- each) for the financial year 2016-17 subject to the approval of the shareholders in the forthcoming Annual General Meeting of the Company. This final dividend is in addition to the two interim dividends of 6% each (Rs, 0.60 per Equity Share of Rs, 10/- each) declared during the financial year 2016-17. The total dividend for the financial year 2016-17 is 15% (Rs, 1.50 per Equity Share of Rs, 10/- each). Also the dividend on 6% Unlisted Non-convertible, Cumulative, Redeemable Preference Shares of Rs, 10/- each aggregating to Rs, 30,770,492/- has been paid during the financial year 2016-17 on Pro-rata basis, from the date of issue till the date of redemption.

NOTE-14

There are no amounts that are due to be transferred to the Investor Education and Protection Fund in accordance with the relevant provisions of the Companies Act, 1956/2013 and rules made there under.

** includes, 2.6 million (previous years, 1.9 million) on account of expenditure on administrative overheads.

NOTE - 15

Previous yer''s figures have been regrouped/reclassified wherever necessary to correspond with the current year''s classification/disclosure.

NOTE-16

The financial statements were approved for issue by the Board of Directors on May 9, 2017.

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Mar 31, 2016

Notes:

1. Additions to plant and machinery include exchange fluctuation loss of f 105.5 million (Previous year f 125.5 miiiion).

2. Sales/adjustment to plant and machinery include exchange fluctuation gain of f Nil (Previous year M.7 million).

# All the assets are owned assets except as indicated otherwise.

Notes:

1. Additions to plant and machinery include exchange fluctuation loss of f 125.5 million (Previous year f488.4 million).

2. Sales/adjustment to plant and machinery include exchange fluctuation gain of f4.7 million (Previous year f 120.0 million).

3. Pursuant to the transition provisions prescribed in Schedule II to the Companies Act, 2013, the Company has fully depreciated the carrying value of assets, net of residual value, where the remaining useful life of the asset was determined to be Nil as on April 1, 2014, and has charged an amount of f35.1 million in statement of profit and loss for the year 2015.

4. The depreciation expense in the statement of profit and loss for the year is lower by f209.1 million (excluding transaction impact) consequent to the change in the useful life of the assets.

* The Company has executed a non-disposal undertaking for this investment in favour of a bank that has provided financial assistance to this company.

* These matters are subject to legal proceedings in the ordinary course of business. In the opinion of the management, legal proceedings when ultimately concluded will not have a material effect on the results of operations or financial position of the Company.

'' The above guarantees have been provided for business purposes.

# The Company has other commitments for purchase/sale orders which are issued after considering requirements as per the operating cycle for purchase/sale of goods and services, employee benefits. The Company does not have any long term commitment or material non cancellable contractual commitments/contracts which might have a material impact on the financial statements other than commitment given for advertisement in print media of Rs,31.6 million (Previous year Rs,74.3 million), for which advance has been given by the Company.

a) Defined contribution plans

The Company makes contribution towards employees'' provident fund and employees'' state insurance plan scheme. Under the schemes, the Company is required to contribute a specified percentage of payroll cost, as specified in the rules of the schemes, to these defined contribution schemes. The Company recognized Rs,233.4 million (Previous year Rs,255.2 million) during the year as expense towards contribution to these plans. Out of Rs,233.4 million, Rs,12.7 million (Previous year Rs,1.7) is included under Fixed assets / Capital work in progress.

b) Defined benefit plans Gratuity scheme

The amount of gratuity has been computed based on respective employee''s salary and the years of employment with the Company. Gratuity has been accrued based on actuarial valuation as at the balance sheet date, carried out by an independent actuary. The amount is funded through trusts'' group gratuity schemes managed by Life Insurance Corporation of India, SBI Life Insurance Company Limited and Bajaj Allianz. The Company is contributing to trusts towards the payment of premium of such group gratuity schemes.

c) Compensated Absences

Compensated absences include earned leaves and sick leaves. Long term compensated absences have been provided on accrual basis based on year end actuarial valuation and short term compensated absences on actual basis.

# Provision for compensated absences as disclosed under note 10 includes Rs,41.1 million (previous year Rs,35.0 million) provided for short term leaves of the employees.

* The plan assets are maintained with Life Insurance Corporation of India, SBI Life Insurance Company Ltd, Bajaj Allianz and Trust. The details of the investment maintained by these insurance companies have not been provided by these entities and hence have not been disclosed. The trust has kept the amount in bank account.

Dues to Micro, Small and Medium Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the management. This has been relied upon by the auditors.

NOTE 1 - RELATED PARTY DISCLOSURES

The related party disclosures as per Accounting Standard- 18 are as under:

A. Name of related party and nature of related party relationship

(i) Enterprises where control exists

a) Enterprise that controls the Company

- Madhuraj Foundation (directly or indirectly holds majority voting power)

b) Enterprises that are controlled by the Company, i.e. subsidiary company.

- Trident Global Corp Limited

- Trident Europe Limited, (w.e.f. November 26, 2015)

(ii) Other related parties where transactions have taken place during the year:

a) Enterprises under the common control as the Company

- Trident Group Limited

- Trident Capital Limited

- Trident Industrial Corp Limited

- Trident Institute of Social Sciences

b) Enterprise on which Company exercises significant influence

- Trident Global, Inc.

- Lotus Texpark Limited, (w.e.f. January 06, 2016)

c) Key management personnel and other relatives

- Mr. Deepak Nanda

I Segment Accounting Policies:

a. The business segments comprise of the following:

Textiles Yarn, Towel, Bedsheets, Dyed Yarn manufacturing (Including utility service)

Paper and Chemical/Chemicals Paper and Sulphuric Acid (Including utility service)

Others Sale of software and related services

b. Business segments have been identified based on the nature and class of products and services, their customers and assessment of differential risks and returns and financial reporting system within the Company.

c. The geographical segments considered for disclosure are based on markets, broadly as under:

Sale in the USA

Sale in Rest of the world

d. Segment accounting policies: In addition to the significant accounting policies, applicable to the business as set out in note 2, the accounting policies in relation to segment accounting are as under:

i. Segment assets and liabilities:

Segment assets include all operating assets used by a segment and consist principally of cash, debtors, inventories and fixed assets including capital work in progress, net of allowances and provisions, which are reported as direct offset in the balance sheet. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities.

ii Segment revenue and expenses:

Joint revenue and expenses of segments are allocated amongst them on reasonable basis. All other segment revenue and expenses are directly attributable to the segments.

iii Inter segment sales:

Inter segment sales are accounted for at cost and are eliminated in consolidation.

b) Derivative instruments are for hedging foreign exchange risk arising from underlying transaction, firm commitments and/or highly probable forecast transactions.

c) Foreign currency exposures remaining unheeded at the yearend:

Against imports (creditors) - Euro 0.2 million (Previous year Euro 0.7 million)

USD 0.5 million (Previous year USD 0.4 million)

CHF0.1 million (Previous year CHF 0.1 million)

JPY Nil (Previous year JPY 0.7 million)

Against imports (advance to creditors) - Euro 0.11 million (Previous year Euro Nil)

USD 0.10 million (Previous year USD 0.4 million)

CHF 0.03 million (Previous year CHF Nil)

JPY 7.4 million (Previous year JPY 1.3 million)

Foreign currency loans - USD 13.7 million (Previous year USD 21.75 million)

NOTE 2- AMALGAMATION OF TRIDENT CORPORATION LIMITED WITH THE COMPANY_

During the previous year pursuant to scheme of Amalgamation of erstwhile Trident Corporation Limited (TCL) with the Company approved by Hon''ble Punjab and Haryana High Court vide its order dated March 14, 2014 which became effective on April 18, 2014 on filing of the certified copy of the order of the High Court with the Registrar of Companies at Chandigarh, all the properties, assets, both movable and immovable and liabilities of TCL have without further act or deed had been transferred to and vested in the Company, as a going concern with effect from the appointed date i.e. April 1, 2014.

The net surplus of Rs,305.4 million arising consequent to amalgamation of TCL with the Company in terms of the Scheme had been credited to Capital Reserve.

NOTE 3 - LEASE AGREEMENTS_

The Company has entered into operating lease agreements for offices. These lease agreements are cancellable in nature and range between one to three years. The aggregate lease rentals under these agreements amounting to Rs,81.1 million (Previous year Rs,57.5 million) have been charged under "Rent" in note 27.

The Company has given common security for these loans which has been given in note 5 and interest rates ranges from 10.5% to 12.5% per annum before subsidy.

C. Vehicle loans from banks

Vehicle loans are secured by hypothecation of vehicles acquired against such loans, repayable in equal monthly installments, Rs,13.3 million (previous year Rs,13.7 million).

NOTE 4 - EQUITY HELD BYTAL BENEFIT TRUST_

The Company is a beneficiary of a Trust viz. TAL Benefit Trust settled pursuant to the scheme of amalgamation of erstwhile Trident Agritech Limited with the Company as sanctioned by Hon''ble Punjab and Haryana High Court at Chandigarh vide its Order dated September 29, 2011.

As at March 31, 2016, the beneficial interest of the Company in the TAL Benefit Trust is 14,548,387 (previous year 14,548,387) equity shares of Trident Limited aggregating to Rs,145.5 million (previous year Rs,145.5 million) which is shown as Investment.

NOTE 5 - EMPLOYEES'' STOCK OPTION PLANS_

The erstwhile Compensation Committee of Board of Directors of the Company has granted options to the employees pursuant to Trident Employees Stock Options Plan 2007 (''the Plan'') on July 09, 2007 (Grant I) and July 23, 2009 (Grant II). These options were granted at Rs,17.55 and Rs,11.20 per option respectively, being the latest available closing market price prior to the date of grant of options in accordance with SEBI guidelines. The quoted price of share on grant and the exercise price of option is equal and therefore there is no impact on statement of profit and loss due to Employee Share-based options as the Company is following intrinsic value method.

The Company has allotted 729,557 equity shares (previous year 1,202,757 equity shares) to employees during the year under the Trident Employees Stock Options Plan, 2007.

NOTE 6- The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.

NOTE 7 - There are no amounts that are due to be transferred to the Investor Education and Protection Fund in accordance with the relevant provisions of the Companies Act, 1956/2013 and rules made there under.

NOTE 8 - Previous year''s figures have been regrouped/reclassified wherever necessary to correspond with the current year''s classification/ disclosure.

# Written off in earlier year, refer Note 12 of consolidated financial statements.

Notes :

1. There is significant influence due to percentage (%) of Share Capital.

2. The above statement also indicates performance and financial position of each of the Subsidiary and Associate Companies.

3. The Profit/(Loss) of the foreign Associates has been converted into Indian Rupees on the basis of yearly average for the year: 1 US $ = Rs,65.46

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Mar 31, 2015

Note 1: CORPORATE INFORMATION

Trident Limited ("the Company") is a public company domiciled in India and incorporated on April 18, 1990 under the provisions of the Companies Act, 1956. The name of the Company has been changed from Abhishek Industries Limited to Trident Limited on April 18, 2011. The shares of the Company are listed on two stock exchanges in India i.e. National Stock Exchange of India Limited (NSE) and BSE Limited (BSE). The Company is engaged in manufacturing, trading and selling of yarn, terry towels, paper, chemicals and IT enabled and business related services.

a) Rights, preferences and restrictions attached to the equity shareholders:

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. 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.

b) Term loans

Term loans from banks and financial institutions are secured by way of equitable mortgage created or to be created on all the present and future immovable properties including all land, buildings, structures, all plant and machinery attached thereon of the Company and hypothecation of all the movable properties including movable machinery spares, tools and accessories, etc., present and future, subject to prior charges created and / or to be created in favour of the Company''s bankers on stocks of raw materials, semi finished and finished goods, consumable stores and other movable, as may be required for working capital requirements in the ordinary course of business. The mortgages and charges referred to above rank pari-passu among the lenders (refer note 42 A for repayment terms).

With respect to the term loans from banks obtained by erstwhile Trident Corporation Limited (the Amalgamating Company), amalgamated with the Company with effect from the appointed date i.e. April 1, 2014, the same are secured by way of equitable mortgage created on the immovable properties including all buildings, structures, plant and machinery attached thereon and hypothecation of all the movable properties including movable machinery spares, tools and accessories, stocks of raw materials, semi finished goods, consumable stores and other moveables of the Amalgamating Company, as existing immediately prior to the amalgamation of the Amalgamating Company with the Company. (refer note 42 B for repayment terms).

Includes Rs. Nil (Previous year Rs.872.6 million) buyers credits loan taken by the Company for a period of up to 3 years from foreign banks against term loans sanctioned by Indian banks.

Note 2: CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR) (Rs million)

Particular As at March As at March 31, 2015 31, 2014

I Contingent liabilities

a) Claims* (excluding claims by employees where amounts are not ascertainable) not acknowledged as debt:

* Service tax 4.2 3.3

* Excise duty 46.2 83.1

* Income tax 42.8 72.1

* Sales Tax 0.7 -

* Others 0.3 -

b) Bills discounted 1,919.8 1,747.6

c) Guarantees given to banks on behalf of others of Rs.1,896.0 1,159.0 1,111.9 million (Previous year Rs.1,978.1 million) - Loan outstanding

II Commitments

a) Estimated amount of contracts remaining to be executed on 4,909.0 576.0 capital account (net of advances)

b) Other commitments #

* These matters are subject to legal proceedings in the ordinary course of business. In the opinion of the management, legal proceedings when ultimately concluded will not have a material effect on the results of operations or financial position of the Company.

A The above guarantees have been provided for business purposes.

* The Company has other commitments for purchase/sale orders which are issued after considering requirements per operating cycle for purchase/ sale of goods and services, employee benefits. The Company does not have any long term commitment or material non cancellable contractual commitments/contracts which might have a material impact on the financial statements other than commitment given for advertisement in print media of Rs.74.3 million (Previous year Rs.184.3 million), for which advance has been given by the Company.

b) Defined benefit plans Gratuity scheme

The amount of gratuity has been computed based on respective employee''s salary and the years of employment with the Company. Gratuity has been accrued based on actuarial valuation as at the balance sheet date, carried out by an independent actuary. The amount is funded through trusts'' group gratuity schemes managed by Life Insurance Corporation of India, SBI Life Insurance Company Limited, ICICI Prudential Life Insurance Company Limited, Bajaj Allianz and PNB Metlife India Insurance Company Limited. The Company is contributing to trusts towards the payment of premium of such group gratuity schemes.

Note 3: DUES TO MICRO, SMALL AND MEDIUM ENTERPRISES

According to the records available with the Company, dues payable to entities that are classified as Micro and Small Enterprises under the Micro, Small and Medium Enterprises Development Act, 2006, during the year is Rs.27.8 million (Previous year Rs.41.1 million). The amount of interest accrued during the year and remaining unpaid as at March 31, 2015 is Rs.0.3 million (Previous year Rs.0.2 million).

Dues to Micro, Small and Medium Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the management. This has been relied upon by the auditors.

Note 4: RELATED PARTY DISCLOSURES

The related party disclosures as per Accounting Standard- 18 are as under:

A. Name of related party and nature of related party relationship

(i) Enterprises where control exists

a) Enterprise that controls the Company

* Madhuraj Foundation (directly or indirectly holds majority voting power)

b) Enterprises that are controlled by the Company, i.e. subsidiary company

* Trident Global Corp Limited

(ii) Other related parties where transactions have taken place during the year:

a) Enterprises under the common control as the Company

* Trident Group Limited

* Trident Institute of Social Sciences

* Trident Industrial Corp Limited

b) Enterprise on which Company exercises significant influence

* Trident Global Inc.

c) Key management personnel and their relatives

* Mr. Deepak Nanda

Note 5: SEGMENT INFORMATION

I Segment Accounting Policies:

a. The business segments comprise of the following:

Textiles : Yarn, Towel, Dyed Yarn manufacturing (Including utility service)

Paper and Chemical : Paper and Sulphuric Acid (Including utility service)

Others : Sale of software and related services

b. Business segments have been identified based on the nature and class of products and services, their customers and assessment of differential risks and returns and financial reporting system within the Company. On a review carried out on the basis of factors detailed in Accounting standard (AS) - 17 "Segment Reporting", ''Yarn'' and ''Terry Towel'' business segments have been combined into one segment namely "Textiles" during the year.

c. The geographical segments considered for disclosure are based on markets, broadly as under:

Sale in the USA

Sale in rest of the world

d. Segment accounting policies: In addition to the significant accounting policies, applicable to the business as set out in note 2, the accounting policies in relation to segment accounting are as under:

i. Segment assets and liabilities:

Segment assets include all operating assets used by a segment and consist principally of cash, debtors, inventories and fixed assets including capital work in progress, net of allowances and provisions, which are reported as direct offset in the balance sheet. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities.

ii Segment revenue and expenses:

Joint revenue and expenses of segments are allocated amongst them on reasonable basis. All other segment revenue and expenses are directly attributable to the segments.

b) Derivative instruments are for hedging foreign exchange risk arising from underlined transaction, firm commitments and/or highly probable forecast transactions.

c) Foreign currency exposures remaining unhedged at the year end:

Against imports (creditors) - Euro 0.7 million (Previous year Euro 0.2 million)

- USD 0.4 million (Previous year USD 0.9 million)

- CHF 0.1 million (Previous year CHF 0.1 million )

- JPY 0.7 million (Previous year JPY Nil)

Against imports (advance to creditors) - USD 0.4 million (Previous year USD 0.6 million)

- JPY 1.3 million (Previous year JPY 1.9 million)

Foreign currency loans - USD 21.75 million (Previous year USD 28.36 million)

Note 6: AMALGAMATION OF TRIDENT CORPORATION LIMITED WITH THE COMPANY

Pursuant to scheme of Amalgamation of erstwhile Trident Corporation Limited (TCL) with the Company approved by Hon''ble Punjab and Haryana High Court vide its order dated March 14, 2014 which became effective on April 18, 2014 on filing of the certified copy of the order of the High Court with The Registrar of Companies at Chandigarh, all the properties, assets, both movable and immovable and liabilities of TCL have without further act or deed, been transferred to and vested in the Company, as a going concern with effect from the appointed date i.e. April 1,2014.

For giving effect to the amalgamation in the nature of merger, the ''purchase'' method as prescribed by the Accounting Standard 14 "Accounting for Amalgamations" issued by the Institute of Chartered Accountants of India, has been followed in these accounts wherein, the assets and liabilities as at April 1, 2014 and the transactions including income and expenses for the period April 1, 2014 to April 18, 2014 of TCL (being the period when pending effectuation of the Scheme, the business and activities of TCL were being run and managed in trust for the Company) have been incorporated in the accounts of the Company.

Note 7: LEASE AGREEMENTS

The Company has entered into operating lease agreements for offices. These lease arrangements are cancellable in nature and range between one to three years. The aggregate lease rentals under these agreements amounting to Rs.57.5 million (Previous year Rs.47.2 million) have been charged under "Rent" in note 27.

Note 8: MONEY RECEIVED AGAINST SHARE WARRANTS

The Company on September 30, 2013, had issued 60,000,000 warrants carrying an option to the holder of such warrants to subscribe to one equity share of Rs.10 each at par for every warrant held, within 18 months from the date of allotment of warrants.

Pursuant to exercise of conversion option by the holders of warrants, the Company has, in accordance with the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009; allotted 60,000,000 equity shares of Rs.10 each fully paid up for cash on October 6, 2014. There is no warrants outstanding as on March 31, 2015.

Note 9: EQUITY HELD BY TAL BENEFIT TRUST

The Company is a beneficiary of a Trust viz. TAL Benefit Trust settled pursuant to the scheme of amalgamation of erstwhile Trident Agritech Limited with the Company as sanctioned by Hon''ble Punjab and Haryana High Court at Chandigarh vide its Order dated September 29, 2011.

As at March 31, 2015, the beneficial interest of the Company in the TAL Benefit Trust is 14,548,387 (previous year 14,548,387) equity shares of Trident Limited aggregating to Rs.145.5 million (previous year Rs.145.5 million) which is shown as Investment.

Note 10: EMPLOYEES'' STOCK OPTION PLANS

The erstwhile Compensation Committee of Board of Directors of the Company has granted options to the employees pursuant to Trident Employees Stock Options Plan 2007 (''the Plan'') on July 09, 2007 (Grant I) and July 23, 2009 (Grant II). These options were granted at Rs.17.55 and Rs.11.20 per option respectively, being the latest available closing market price prior to the date of grant of options in accordance with SEBI guidelines. The quoted price of share on grant and the exercise price of option is equal and therefore there is no impact on statement of profit and loss due to Employee Share-based options as the Company is following intrinsic value method.

The Company has allotted 1,202,757 equity shares (previous year 249,600 equity shares) to employees during the year under the Trident Employees Stock Options Plan, 2007.

Note 11: INVESTMENT IN PREFERENCE SHARES

The Board of Directors of IOL Chemicals and Pharmaceuticals Limited (IOL) in its meeting held on June 21, 2014 has allotted 1,785,714 equity shares of IOL to the Company at a price of ''28 per equity share pursuant to exercise of conversion option given by the Board of Directors of IOL to the Company as holder of 7% Non-Cumulative Redeemable Preference Shares issued by IOL to it in an earlier year.

Note 12:

The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.

Note 13:

There are no amounts that are due to be transferred to the Investor Education and Protection Fund in accordance with the relevant provisions of the Companies Act, 1956/2013 and rules made thereunder.

Note 14:

As the current year''s figures are of merged entity, these are not comparable with previous financial year''s figures. Further, previous year''s figures have been regrouped/reclassified wherever necessary to correspond with the current year''s classification/disclosure.

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Mar 31, 2014

CORPORATE INFORMATION

Trident Limited ("the Company") is a public company domiciled in India and incorporated on April 18, 1990 under the provisions of the Companies Act, 1956. The name of the Company has been changed from Abhishek Industries Limited to Trident Limited on April 18, 2011. The shares of the Company are listed on two stock exchanges in India i.e. National Stock Exchange of India Limited (NSE) and BSE Limited (BSE). The Company is engaged in manufacturing, trading and selling of yarn, terry towels, paper, chemicals and IT enabled and business related services.

SHARE CAPITAL

Rights, preferences and restrictions attached to the equity shareholders:

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. 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.

Term loans

Term loans from banks and financial institutions are secured by way of equitable mortgage created or to be created on all the present and future immovable properties including all land, buildings, structures, all plant and machinery attached thereon of the Company and hypothecation of all the movable properties including movable machinery spares, tools and accessories, etc., present and future, subject to prior charges created and/or to be created in favour of the Company''s bankers on stocks of raw materials, semi finished and finished goods, consumable stores and other movables, as may be required for working capital requirements in the ordinary course of business. The mortgages and charges referred to above rank pari-passu among the lenders (Refer note 42 for repayment terms).

Includes Rs.872.6 million (Previous year Rs.1,145.8 million) buyers credits loan taken by the Company for a period of up to 3 years from foreign banks against term loans sanctioned by Indian banks. As per agreed terms, these buyer credit loans would be repaid to foreign banks by Indian banks out of term loan amount sanctioned to the Company by these Indian banks and accordingly, have been classified as long term borrowings.

Cash credits/working capital loans

Cash credits/working capital loans are secured by hypothecation of raw materials, semi finished and finished goods, stock-in- process, consumable stores, other movable assets and book debts, present and future, of the Company. The limits are further secured by way of second pari passu charge on the immovable properties of the Company.

FIXED ASSETS

Notes:

1. Additions to plant and machinery include exchange fluctuation loss of Rs.488.4 million (Previous year Rs.390.8 million).

2. Sales/adjustment to plant and machinery include exchange fluctuation gain of Rs.120.0 million (Previous year Rs.33.8 million).

Notes:

1. Additions to plant and machinery includes exchange fluctuation loss of Rs.390.8 million (Previous year Rs.421.3 million).

2. Sales /adjustment to plant and machinery includes exchange fluctuation gain of Rs.33.8 million (Previous year Rs.20.0 million).

CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)

As at March 31, As at March 31, 2014 2013

I. Contingent liabilities

(a) Claims* (excluding claims by employees where amounts are not ascertainable) not acknowledged as debt:

- Service tax 3.3 5.7 - Excise duty 83.1 45.6 - Income tax 72.1 9.4 - Others - 0.5

(b) Bills discounted 1,747.6 1,963.5

(c) Guarantees given to banks on behalf of others of Rs.1978.1 million (Previous year Rs.1978.1 million) - Loan outstanding 1,111.9 1,187.4

II. Commitments

(a) Estimated amount of contracts remaining 576.0 41.4 to be executed on capital account (net of advances)

(b) Other commitments #

* All the above matters are subject to legal proceedings in the ordinary course of business. In the opinion of the management, legal proceedings when ultimately concluded will not have a material effect on the results of operations or financial position of the Company.

# The Company has other commitments for purchase/sale orders which are issued after considering requirements per operating cycle for purchase/sale of goods and services, employee benefits. The Company does not have any long term commitment or material non cancellable contractual commitments/contracts which might have a material impact on the financial statements other than commitment given for advertisement in print media of Rs.184.3 million (Previous year Rs.280.8 million), for which the Company has given advance.

a) Defined contribution plans

The Company makes contribution towards employees'' provident fund and employees'' state insurance plan scheme. Under the schemes, the Company is required to contribute a specified percentage of payroll cost, as specified in the rules of the schemes, to these defined contribution schemes. The Company recognized Rs.185.7 million (Previous year Rs.161.6 million) during the year as expense towards contribution to these plans.

b) Defined benefit plans

Gratuity scheme

The amount of gratuity has been computed based on respective employee''s salary and the years of employment with the Company. Gratuity has been accrued based on actuarial valuation as at the balance sheet date, carried out by an independent actuary. The amount is funded through trusts'' group gratuity schemes managed by Life Insurance Corporation of India, SBI Life Insurance Company Limited, ICICI Prudential Life Insurance Company Limited and Metlife India Insurance Company Limited. The Company is contributing to trusts towards the payment of premium of such group gratuity schemes.

DUES TO MICRO, SMALL AND MEDIUM ENTERPRISES

According to the records available with the Company, dues payable to entities that are classified as Micro and Small Enterprises under the Micro, Small and Medium Enterprises Development Act, 2006, during the year is Rs.41.1 million (Previous year Rs.35.1 million). The amount of interest accrued during the year and remaining unpaid as at March 31, 2014 is Rs.0.2 million (Previous year Nil).

Dues to Micro, Small and Medium Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the management. This has been relied upon by the auditors.

RELATED PARTY DISCLOSURES

The related party disclosures as per Accounting Standard - 18 are as under:

A. Name of related party and nature of related party relationship

(i) Enterprises where control exists

a) Eneterprise that controls the Company

- Madhuraj Foundation (directly or indirectly holds majority voting power)

b) Enterprises that are controlled by the Company, i.e. subsidiary companies

- Trident Global Corp Limited

(ii) Other related parties where transactions have taken place during the year:

a) Enterprises under the common control as the Company

- Trident Group Limited - Trident Capital Limited - Trident Industrial Corp Limited

b) Enterprise on which Company exercises significant influence

- Trident Corporation Limited (Also refer note 39) - Lotus Integrated Texpark Limited (upto 31.03.2013) - Trident Global, Inc.

c) Key management personnel and other relatives

- Mr. Deepak Nanda

Segment Accounting Policies:

a. The business segments comprise of the following:

Yarn : Yarn manufacturing (Including utility service)

Towel : Towel, Dyed Yarn manufacturing (Including utility service)

Paper and Chemical : Paper and Sulphuric Acid(Including utility service)

Others : Sale of software and related services

b. Business segments have been identified based on the nature and class of products and services, their customers and assessment of differential risks and returns and financial reporting system within the Company.

c. The geographical segments considered for disclosure are based on markets, broadly as under:

Sale in the USA Sale in rest of the world

d. Segment accounting policies: In addition to the significant accounting policies, applicable to the business as set out in note 2, the accounting policies in relation to segment accounting are as under:

i. Segment assets and liabilities:

Segment assets include all operating assets used by a segment and consist principally of cash, debtors, inventories and fixed assets including capital work in progress, net of allowances and provisions, which are reported as direct offset in the balance sheet. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities.

ii Segment revenue and expenses:

Joint revenue and expenses of segments are allocated amongst them on reasonable basis. All other segment revenue and expenses are directly attributable to the segments.

iii Inter segment sales:

Inter segment sales are accounted for at cost and are eliminated in consolidation.

AMALGAMATION OF TRIDENT CORPORATION LIMITED WITH THE COMPANY

Subsequent to year end, Trident Corporation Limited has been amalgamated with the Company w.e.f. the appointed date i.e. April 1, 2014 in terms of Scheme of Amalgamation sanctioned by Hon''ble Punjab and Haryana High Court at Chandigarh vide its Order dated March 14, 2014. In terms of the sanctioned scheme, the undertaking of Trident Corporation Limited stands transferred and vests in the Company. The Company has allotted 136,352,000 equity shares of Rs.10 each at a premium of Rs.18.61 per share on May 15, 2014 to the shareholders of erstwhile Trident Corporation Limited in terms of the sanctioned scheme of Amalgamation. Consequent to this allotment, the paid up equity share capital of the Company has increased to Rs.4,474.39 million. The investments and capital advances inter-se between the Amalgamating company (Trident Corporation Limited) and Amalgamated company (Trident Limited) shall stand cancelled on the Appointed date i.e. April 1, 2014.

LEASE AGREEMENTS

The Company has entered into operating lease agreements for offices. These lease arrangements are cancellable in nature and range between one to three years. The aggregate lease rentals under these agreements amounting to Rs.47.2 million (Previous year Rs.45.3 millions) have been charged under "Rent" in note 27.

MONEY RECEIVED AGAINST SHARE WARRANTS

The Company on September 30, 2013, had issued 60,000,000 warrants carrying an option to the holder of such warrants to subscribe to one equity share of Rs.10 each at par for every warrant held, within 18 months from the date of allotment of warrants.

Number of warrants outstanding as on March 31, 2014 are 60,000,000, which can be converted into equity shares within 18 months from the date of allotment i.e. anytime before March 31, 2015. Against these outstanding warrants as on March 31, 2014, an amount of Rs.430 million has been received by the Company and which shall be utilized towards capital expenditure for its composite textile project.

EQUITY HELD BY TAL BENEFIT TRUST

The Company is a beneficiary of a Trust viz. TAL Benefit Trust settled pursuant to the scheme of amalgamation of erstwhile Trident Agritech Limited with the Company as sanctioned by Hon''ble Punjab and Haryana High Court at Chandigarh vide its Order dated September 29, 2011.

As at March 31, 2014, the beneficial interest of the Company in the TAL Benefit Trust is 14,548,387 (Previous year 14,548,387) equity shares of Trident Limited aggregating to Rs.145.5 million (Previous year Rs.145.5 million) which is shown as Investment.

EMPLOYEES'' STOCK OPTION PLANS

The Compensation Committee of Board of Directors of the Company has granted options to the employees pursuant to Trident Employees Stock Options Plan 2007 (''the Plan'') on July 9, 2007 (Grant I) and July 23, 2009 (Grant II). These options were granted at Rs.17.55 and Rs.11.20 per option respectively, being the latest available closing market price prior to the date of grant of options in accordance with SEBI guidelines. The quoted price of share on grant and the exercise price of option is equal and therefore there is no impact on statement of profit and loss due to Employee Share-based options as the Company is following intrinsic value method.

The Company has allotted 249,600 equity shares (Previous year Nil) to employees during the year under the Trident Employees Stock Options Plan, 2007.

The Company has also introduced Trident Employees Option Scheme, 2009 after the approval of shareholders in their meeting held on August 27, 2009. No grant has been given under the said scheme.

INVESTMENT IN PREFERENCE SHARES

7% Non-Cumulative Redeemable Preference Shares of IOL Chemicals and Pharmaceuticals Limited held by the Company were due for redemption on March 20, 2014. However, the date of redemption of the said preference shares has been extended by the Board of Directors of the Company vide its resolution dated February 9, 2014 from March 20, 2014 to June 30, 2015, with an option to convert these preference shares into equity shares at a price calculated in terms of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 or Rs.10/-, whichever is higher. The equity shares so issued shall rank pari passu with existing equity shares of IOL Chemicals and Pharmaceuticals Limited. Further, the Board of Directors of the Company, in their meeting held on May 15, 2014, requested IOL Chemicals and Pharmaceuticals Limited for pre-poning the right of conversion of 7% Non-Cumulative Redeemable Preference Shares into equity shares at the price of Rs.28/- per share or as calculated in terms of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009, whichever is higher.

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Mar 31, 2013

NOTE 1 - CORPORATE INFORMATION

Trident Limited (the Company) is a public company domiciled in ndia and incorporated under the provisions of the Companies Act, 1956 on April 18, 1990. The shares of the Company are listed on two stock exchanges in India i.e. National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). The Company is engaged in manufacturing, trading and sale of yarn, terry towels, paper, chemicals and sale of services

NOTE 2 -According to the records available with the Company, dues payable to entities that are classified as Micro and Small Enterprises under the Micro, Small and Medium Enterprises Development Act, 2006, during the year is Rs.35.1 million (previous yearRs.23.6 million). The amount of interest accrued during the year and remaining unpaid as at March 31, 2013 is Rs.Nil (Previous yearRs.0.1 million)

Dues to Micro, Small and Medium Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management. This has been relied upon by the auditors

NOTE 3- THE RELATED PARTY DISCLOSURES AS PER ACCOUNTING STANDARD- 18 ARE AS UNDER:

A. Name of related party and nature of related party relationship (i) Enterprises where control exists

a. Enterprise that controls the Company

- Madhuraj Foundation (directly or indirectly holds majority voting power)

b. Enterprises that are controlled by the Company, i.e. subsidiary companies

- Trident Global Corp Limited

(ii) Other related parties where transactions have taken place during the year:

a. Enterprises under the common control as the Company

- Trident Group Limited

- Trident Corporation Limited

- Trident Capital Limited

-Abhishek Ventures and Projects Limited

b. Enterprise on which Company exercise significant influence

- Lotus Integrated Texpark Limited

- Trident Global Inc.

c. Key management personnel and their relatives

- Mr. Rajinder Gupta (Ceased to be Managing Director w.e.f. April 23, 2012)

- Mr. Abhishek Gupta (Ceased to be Managing Director w.e.f.October 25, 2012)

- Mr. Deepak Nanda

- Mrs. Madhu Gupta

- Ms. Neha Gupta

NOTE 4 - SEGMENT INFORMATION I Segment Accounting Policies

a. The business segments comprise of the following:

Yarn Yarn manufacturing (Including utility service)

Towel Towel, Dyed Yarn manufacturing (Including utility service)

Paper and Chemical Paper and Sulphuric Acid (Including utility service)

Infotech Sale of software and related services

b. Business segments have been identified based on the nature and class of products and services, their customers and assessment of differential risks and returns and financial reporting system within the Company.

c. The geographical segments considered for disclosure are based on markets, broadly as under: Sale in the USA

Sale in rest of the world

d. Segment accounting policies: In addition to the significant accounting policies, applicable to the business as set out in note 2, the accounting policies in relation to segment accounting are as under:

i. Segment assets and liabilities:

Segment assets include all operating assets used by a segment and consist principally of cash, debtors, inventories and fixed assets including capital work in progress, net of allowances and provisions, which are reported as direct offset in the balance sheet. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities

li. Segment revenue and expenses:

Joint revenue and expenses of segments are allocated amongst them on reasonable basis. All other segment revenue and expenses are directly attributable to the segments

lii. Inter segment sales: Inter segment sales are accounted for at cost and are eliminated in consolidation

NOTE 5 - The Company has entered into operating lease agreements for offices. These lease arrangements are cancellable in nature and range between one to three years. The aggregate lease rentals under these agreements amounting to Rs.45.3 million (Previous year Rs.48.0 millions) have been charges under "Rent" in note 27.

NOTE 6 - MONEY RECEIVED AGAINST SHARE WARRANT

The Company on April 27, 2011 had issued warrants carrying an option to the holder of such warrants to subscribe to one equity share of Rs.10 for every warrant held, within 18 months from the date of allotment of warrants, at a premium of Rs.7.05 per share.

Pursuant to exercise of conversion option by the holder of warrants, the Company has, in accordance with the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009; allotted 50,00,000 equity shares of Rs.10 each fully paid up for cash at a premium of Rs.7.05 per share i.e. at the price of Rs.17.05 per equity share on October 25, 2012.

There is no warrants outstanding as on March 31, 2013, which can be converted into equity shares.

NOTE 7 - AMALGAMATION OF THE ERSTWHILE TRIDENT INFOTECH LIMITED AND ERSTWHILE TRIDENT AGRITECH LIMITED

(a) During previous year, pursuant to the Scheme of Arrangement for Amalgamation (the "Scheme") of the erstwhile Trident nfotech Limited (TIL) and erstwhile Trident Agritech Limited (TAL) with the Company under Sections 391 to 394 of the Companies Act, 1956 approved by the Hon''ble Punjab and Haryana High Court vide its Order dated September 29, 2011 which became effective on November 21, 2011 on filing of the certified copy of the Order of the High Court in the Office of Registrar of Companies, at Chandigarh, all the properties, assets, both movable and immovable, liabilities and reserves of TIL and TAL have without further act or deed, been transferred to and vested in the Company, as a going concern with effect from the appointed date i.e. April 1, 2011

The net surplus arising consequent to amalgamation of TIL and TAL in to the Company in terms of the Scheme had been credited to Capital Reserve'' during previous year

(b) Equity in Trident Benefit Trust

The Company is a beneficiary of a Trust viz. TAL Benefit Trust settled pursuant to the scheme of arrangement for amalgamation of erstwhile Trident Agritech Limited with the Company as sanctioned by Hon''ble Punjab and Haryana High Court at Chandigarh vide its order dated September 29, 2011

As at March 31, 2013, the beneficial interest of the Company in the TAL Benefit Trust is 14,548,387 (Previous year 14,548,387) equity shares of Trident Limited aggregating to Rs.145.5 million which is shown as Investment

NOTE 8 - EMPLOYEE STOCK OPTIONS PLAN

The Compensation Committee of Board of Directors of the Company has granted options to the employees pursuant to Trident Employees Stock Options Plan 2007 (''the Plans'') on July 9, 2007 (Grant I) and July 23, 2009 (Grant II). These options were granted at Rs.17.55 and Rs.11.20 per option respectively, being the latest available closing market price prior to the date of grant of options in accordance with SEBI guidelines. The quoted price of share on grant and the exercise price of option is equal and therefore there is no impact in the statement of profit and loss due to Employee Share-based options as the Company is following intrinsic value method

NOTE 9 - Previous year''s figures have been regrouped/reclassified wherever necessary to correspond with the current year''s classification/disclosure.

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Mar 31, 2012

Term loans

Term loans from banks and financial institutions are secured by way of equitable mortgage created or to be created on all the present and future immovable properties including all land, buildings, structures, all plant and machinery attached thereon of the Company and hypothecation of all the movable properties including movable machinery spares, tools and accessories, etc., present and future, subject to prior charges created and / or to be created in favor of the Company's bankers on stocks of raw materials, semi finished and finished goods, consumable stores and other movable, as may be required for working capital requirements in the ordinary course of business. The mortgages and charges referred to above rank pari-passu among the lenders (refer note 42 for repayment terms).

Includes Rs. 1,391.5 million (previous year Rs. 146.9 million) buyers credits loan taken by the Company for a period of up to 3 years from foreign banks against term loans sanctioned by Indian banks. As per agreed terms, these buyer credit loans would be repaid to foreign banks by Indian banks out of term loan amount sanction to the Company by these Indian banks.

Vehicles loans

Vehicle loans are secured by hypothecation of vehicles acquired against such loans (refer note 42 for repayment terms).

Cash credits/working capital loans

Cash credit/working capital loans are secured by hypothecation of raw materials, semi finished and finished goods, stock-in-process, consumable stores, other movable assets and book debts, present and future, of the Company. The limits are further secured by way of second pari passu charge on the immovable properties of the Company.

* Will be credited to Investor Education and Protection Fund on the expiry of 7 years from the due date.

Notes:

1. Additions to plant and machinery includes exchange fluctuation loss of Rs. 421.3 million (Previous year Rs. 106.9 million).

2. Sales/adjustment to plant and machinery includes exchange fluctuation gain of Rs. 20.0 million (Previous year Rs. 85.5 million).

* Building includes Rs.16.0 million being expenses incurred by the Company towards construction of canal for sourcing of water, ownership of which belongs to Government of Punjab (Department of Irrigation), which has been fully amortized.

# Plant and machinery includes Rs. 15.5 million being expenses incurred by the Company towards laying of feeder line, ownership of which belongs to Punjab State Electricity Board, which has been fully amortized.

^ Refer note 43.

* The Company has executed a non-disposal undertaking in favors of various banks that have provided financial assistance to these companies.

* At cost or net realizable value, whichever is lower

* At cost or net realizable value, whichever is lower

* All the above matters are subject to legal proceedings in the ordinary course of business. The legal proceedings when ultimately concluded will not, in the opinion of the management, have a material effect on the results of operations or financial position of the Company.

# The Company has other commitments for purchase/sale orders which are issued after considering requirements per operating cycle for purchase/sale of goods and services, employee benefits. The Company does not have any long term commitment or material non cancelable contractual commitments/contracts which might have a material impact on the financial statements other than commitment and advance given for advertisement in print media of Rs.300 million for Trident limited and its group entities.

(Rs. millions)

Note CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR):

I. Contingent liabilities

a) Claims* (excluding claims by employees where amounts are not ascertainable) not acknowledged as debt:

-Service Tax 4.1 3.7

- Excise duty 82.5 6.0

-Income Tax 11.0 22.8

-Others 0.5 2.8

b) Bills discounted 995.3 1,069.5

c) Guarantees given to banks on behalf of others Rs. 1,358.1 million

(Previous year Rs.308.1 million) - loan availed 676.1 141.9

II. Commitments

a) Estimated amount of contracts remaining to be

executed on capital account (net of advances) 53.4 2,128.4

b) Other commitments #

a) Defined contribution plans

The Company makes contribution towards employees' provident fund and employees' state insurance plan scheme. Under the schemes, the Company is required to contribute a specified percentage of payroll cost, as specified in the rules of the schemes, to these defined contribution schemes. The Company recognized Rs. 149.0 million (Previous year Rs. 129.6 million) during the year as expense towards contribution to these plans. Out of Rs. 149.0 million, Rs.8.5 million (Previous year Rs. 0.6 million) is included under fixed assets/ capital work in progress.

b) Defined benefit plans Gratuity scheme

The amount of gratuity has been computed based on respective employee's salary and the years of employment with the Company. Gratuity has been accrued based on actuarial valuation as at the balance sheet date, carried out by an independent actuary. The amount is funded through trusts' group gratuity schemes managed by Life Insurance Corporation of India, SBI Life Insurance Company Limited, ICICI Prudential Life Insurance Company Limited and Metlife India Insurance Company Limited. The Company is contributing to trusts towards the payment of premium of such group gratuity schemes.

Compensated Absences

Compensated absences include earned leaves and sick leaves. Long term compensated absences have been provided on accrual basis based on year end actuarial valuation and short term compensated absences on actual basis.

*The plan assets are maintained with Life Insurance Corporation of India, SBI Life Insurance Company Limited, ICICI Prudential Life Insurance Company Limited, MetLife India Insurance Company Limited and Trust. The details of the investment maintained by these parties are not available with the company and have not been disclosed.

The experience adjustments arising on plan liabilities and plan assets and the employer's best estimate of contributions expected to be paid in next financial year is not ascertained and has accordingly not disclosed above.

Note

According to the records available with the Company, dues payable to entities that are classified as Micro and Small Enterprises under the Micro, Small and Medium Enterprises Development Act, 2006, during the year is Rs. 23.6 million (previous year Rs. 17.8 million). The amount of interest accrued during the year and remaining unpaid at as March 31, 2012 is Rs. 0.1 million (Previous year Rs. 0.2 million).

Dues to Micro, Small and Medium Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management. This has been relied upon by the auditors.

* Nil, as exercise price of outstanding ESOP and share warrants is more than the fair value of share, hence considered anti-dilutive.

The related party disclosures as per Accounting Standard-18 are as under:

A. Name of related party and nature of related party relationship

(i) Enterprises where control exists

a) Enterprise that controls the Company

- Madhuraj Foundation (directly or indirectly holds majority voting power)

b) Enterprises that are controlled by the Company, i.e. subsidiary companies - None

(ii) Other related parties where transactions have taken place during the year:

a) Enterprises under the common control as the Company -Trident Group Limited -Trident Infotech Limited (Ceased to be related party w.e.f. 21.11.2011)

-Trident Corporation Limited -Trident Capital Limited

- Trident Towels Limited

- Abhishek Ventures & Projects Limited -Trinetra Technologies Limited

b) Enterprise on which Company exercise significant influence

- Lotus Integrated Texpark Limited

- Trident Agritech Limited (Ceased to be related party w.e.f. 21.11.2011)

c) Key management personnel

- Mr. Rajinder Gupta

- Mr. Raman Kumar (up to 12.11.2011)

- Mr. Deepak Nanda (w.e.f. 12.11.2011)

d) Relative of Key management personnel

- Mrs. Madhu Gupta

- Mr. Abhishek Gupta

* Ceased w.e.f. 27th November 2010.

** Ceased w.e.f. 9th February 2011.

# Amount incorporated pursuant to amalgamation with Trident Agritech Limited (refer note 43).

^ Amount incorporated pursuant to amalgamation with Trident Infotech Limited (refer note 43).

$ Amalgamated with the Company (refer note 43).

## Includes Rs.147.0 million incorporated pursuant to amalgamation of Trident Agritech Limited with the Company. @ Excluding share application money of Rs.178 million given and received back during the year.

d. Segment accounting policies: In addition to the significant accounting policies, applicable to the business as set out in note 2, the accounting policies in relation to segment accounting are as under:

i. Segment assets and liabilities:

Segment assets include all operating assets used by a segment and consist principally of cash, debtors, inventories and fixed assets including capital work in progress, net of allowances and provisions, which are reported as direct offset in the balance sheet. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities.

ii. Segment revenue and expenses:

Joint revenue and expenses of segments are allocated amongst them on reasonable basis. All other segment revenue and expenses are directly attributable to the segments.

iii. Inter segment sales: Inter segment sales are accounted for at cost and are eliminated in consolidation.

Note

A major part of revenue of the Company comes from export sales and as such company has foreign currency fluctuation exposure:

a) During the previous years, the Company has hedged its foreign currency fluctuation exposure by taking various derivative options from various banks having maturity up to January 2013. These derivative options are proprietary products of banks, which do not have a ready market and as such are marked to a model, which is usually bank specific instead of being marked to market. In view of the significant fluctuations associated with the above derivative options, the loss on such derivative options has been provided on settlement basis. Based on the marked to market concept, the loss on valuation on this account amounts to Rs. 343.6 million as on March 31, 2012.

b) The Company has not accounted for reinstatement loss on forward contracts in view of the significant currency fluctuations associated with the exchange rates for the quarter and year ended March 31, 2012. In view of the significant fluctuations associated with these contracts, the loss on such forward contracts has been provided on settlement basis. Based on the marked to market concept, the loss on valuation on this account amounts to Rs. 263.5 million as on March 31, 2012.

Note

The Company has entered into operating lease agreements for offices. These lease arrangements are cancellable in nature and range between one to three years. The aggregate lease rentals under these agreements amounting to Rs.48.0 million (Previous year Rs. 53.7 millions) have been charges under "Rent" in note 27.

Note MONEY RECEIVED AGAINST SHARE WARRANT

The Company on April 27, 2011 had issued 3,50,00,000 warrants carrying an option to the holder of such warrants to subscribe to one equity share of Rs 10 for every warrant held, within 18 months from the date of allotment of warrants, at a premium of Rs. 7.05 per share.

Pursuant to exercise of conversion option by the holder of warrants, the Company has, in accordance with the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009; allotted 3,00,00,000 equity shares of Rs. 10 each fully paid up for cash at a premium of Rs 7.05 per share i.e. at the price of Rs. 17.05 per equity share on March 30, 2012.

Number of warrants outstanding as on March 31, 2012 are 50,00,000, which can be converted into equity shares within 18 months from the date of allotment i.e anytime before October 26, 2012. Against these outstanding warrants as on March 31, 2012, an amount of Rs. 21.30 million i.e. 25% of Rs. 17.05 per warrant has been received by the Company.

B. Vehicle Loans from banks

Vehicle loans are secured by hypothecation of vehicles acquired against such loans, repayable on equal monthly installments, amount due in a year is Rs. 20.1 million (previous year Rs. 22.5 million)

Note AMALGAMATION OF THE ERSTWHILE TRIDENT INFOTECH LIMITED AND ERSTWHILE TRIDENT AGRITECH LIMITED"

a) Pursuant to the Scheme of Arrangement for Amalgamation (the "Scheme") of the erstwhile Trident Infotech Limited (TIL) and erstwhile Trident Agritech Limited (TAL) with the Company under Sections 391 to 394 of the Companies Act, 1956 approved by the Hon'ble Punjab and Haryana High Court vide its Order dated September 29, 2011 which became effective on November 21, 2011 on filing of the certified copy of the Order of the High Court in the Office of Registrar of Companies, at Chandigarh, all the properties, assets, both movable and immovable and liabilities of TIL and TAL have without further act or deed, been transferred to and vested in the Company, as a going concern with effect from the appointed date i.e. April 1, 2011.

For giving effect to the amalgamation in the nature of merger the 'purchase' method as prescribed by the Accounting Standard 14 "Accounting for amalgamations" issued by the Institute of Chartered Accountants of India, has been followed in these accounts wherein, the assets and liabilities as at April 1, 2011 and the transactions including income and expenses for the period April 1, 2011 to November 21, 2011 of TIL and TAL (being the period when pending effectuation of the Scheme, the business and activities of TIL and TAL were being run and managed in trust for the Company) have been incorporated in the accounts of the Company.

Consequent to the effectuation of the said Scheme:

The shareholders of TIL were entitled to five equity shares of Rs. 10 each in the Company as fully paid up (exchange shares) for every six equity shares of Rs. 10 each fully paid held by them in TIL.

The shareholders of TAL were entitled to twenty equity shares of Rs. 1 0 each in the Company as fully paid up (exchange shares) for every thirty one equity shares of Rs. 1 0 each fully paid held by them in TAL.

The net surplus arising consequent to amalgamation of TIL and TAL in to the Company in terms of the Scheme has been credited to 'Capital Reserve'.

b) Interest (Equity) in TAL Benefit Trust

The Company is a beneficiary of a Trust viz. TAL Benefit Trust settled pursuant to the scheme of arrangement for amalgamation of erstwhile Trident Aristech Limited with the Company as sanctioned by Hon'ble Punjab and Haryana High Court at Chandigarh vide its Order dated September 29, 2011.

As at March 31, 2012, the beneficial interest of the Company in the TAL Benefit Trust is 14,548,387 (Previous year Nil) equity shares of Trident Limited aggregating to Rs.145.5 million which is shown as Investment.

Note EMPLOYEE STOCK OPTIONS PLAN

The Compensation Committee of Board of Directors of the Company has granted options to the employees pursuant to Trident Employees Stock Options Plan 2007 ('the Plans') on July 9, 2007 (Grant I) and July 23, 2009 (Grant II). These options were granted at Rs. 17.55 and Rs. 11.20 per option respectively, being the latest available closing market price prior to the date of grant of options in accordance with SEBI guidelines. The quoted price of share on grant and the exercise price of option is equal and therefore there is no impact on profit and loss account due to Employee Share-based options as the Company is following intrinsic value method.

The Company has allotted 32,174 equity shares under Grant II to employees during the year.

In respect of options granted under the Employees' Stock Option Plan, in accordance with Guidance Note on Accounting for Employee Share-based Payment issued by the Institute of Chartered Accountants of India, the details of Options outstanding is as under:

Note

The Revised Schedule VI has become effective from April 1, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year's figures have been regrouped/reclassified wherever necessary to correspond with the current year's classification/disclosure.

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Mar 31, 2011

1 Contingent liabilities not provided for:

(Rs. million) Particulars As at As at March 31, March 31, 2011 2010

Claims* (excluding claims by employees where amounts are not ascertainable) not acknowledged as debt:

– Sales tax – 0.3

– Service tax 3.7 –

– Excise duty 6.0 3.7

– Income tax 22.8 25.5

– Others 2.8 7.7

* All the above matters are subject to legal proceedings in the ordinary course of business. The legal proceedings when ultimately concluded will not, in the opinion of the management, have a material effect on the results of operations or financial position of the Company.

(Rs. million) Particulars As at As at March 31, March 31, 2011 2010

– Bills discounted 1,069.5 881.8

– Estimated amount of contracts 2,128.4 78.0 remaining to be executed on capital account (Net of advances)

– Guarantees given to banks on behalf 141.9 106.7 of others Rs. 308.1 million (Previous Year Rs. 106.7 million), Loan outstanding

2. The following current investments in the units of mutual funds were purchased and sold during the year:

34,54,653 units of Rs. 10 each fully paid up of ICICI Prudential Interval Fund II - Institutional Cumulative

5,94,834 units of Rs. 10 each fully paid up of SBI Magnum Insta Cash Fund - Liquid Floater Plan - Growth

10,00,000 units of Rs. 10 each fully paid up of DSP Blackrock FMP-3M Series 24 – Dividend Payout

1,20,53,470 units of Rs. 10 each fully paid up of BSL Floating Rate Fund-Long Term - Insta- Weekly Dividend

38,48,818 units of Rs. 10 each fully paid up of Reliance monthly Interval Fund – Series – I – Institutional Growth Plan

15,85,867 units of Rs. 10 each fully paid up of Kotak Quarterly Interval Plan Series 1 - Growth

19,84,972 units of Rs. 10 each fully paid up of Kotak Floater Long Term - Daily Dividend

52,567 units of Rs. 10 each fully paid up of SBI Magnum Sector Funds Umbrella Cont ra – Growth

2,176 units of Rs. 10 each fully paid up of SBI SHF Ultra Short Term Fund- Inst Plan- Daily Dividend Fund

3. The related party disclosures as per Accounting Standard- 18 are as under:

i) Enterprises where control exists

a) Enterprise that controls the Company

– Madhuraj Foundation (directly or indirectly holds majority voting power)

b) Enterprises that are controlled by the Company, i.e. subsidiary Companies

– Abhishek Industries Inc. (ceases w.e.f. March 30, 2011)

– Abhishek Global Ventures Limited (ceases w.e.f. February 9, 2011)

ii) Other related parties where transactions have taken place during the year:

a) Enterprises under the common control as the Company

– Trident Group Limited (Formerly Madhuraj Foundation Limited)

– Trident Infotech Limited (Formerly Praneel Corporate Services Limited)

– Rainbow Retail Limited (ceases w.e.f November 27, 2010)

– Trident Corporation Limited

– Trident Towels Limited

b) Enterprise on which Company exercise significant influence – Lotus Integrated Texpark Limited

– Trident Agritech Limited

c) Key management personnel

– Mr. Rajinder Gupta

– Mr. Raman Kumar

d) Relative of Key management personnel

– Mr. Abhishek Gupta

– Mrs. Madhu Gupta

4. a) Loans and advances includes amounts given to Companies under the same management referred to in section 370 (1B) of the Companies Act, 1956 of Rs. 4.9 million (Previous year Rs. 4.9 million) and Rs. 4.8 million (Previous year Rs. 1.0 million), recoverable from Rainbow Retail Limited and Trident Infotech Limited respectively {maximum amount outstanding during the year Rs. 5.3 million (Previous year Rs. 9.9 million) and Rs. 13.2 million (Previous year Rs.18.4 million) respectively}.

b) Loans and advances given to entities referred under clause 32 of Listing Agreement includes loans and advances to Abhishek Global Ventures Limited (a wholly owned subsidiary upto February 8, 2011) of Rs.11.4 million (Previous year Rs. 8.3 million) {maximum balance outstanding during the year Rs. 11.4 million (Previous year Rs. 45.7 million)} and to Trident Agritech Limited and Lotus Integrated Texpark Limited (both associates) amounting to Rs. 77.8 million (Previous year Rs. 58.8 million) and Rs. Nil (Previous year Rs. Nil) respectively {maximum balance outstanding during the year Rs. 77.9 million (Previous year 169.3 million) and Rs. 3.9 million (Previous year Rs. 3.3 million) respectively}.

5. Segment information:

I. Segment Accounting Policies

a. The business segments comprise of the following:

- Yarn : Yarn manufacturing (Including utility service)

- Towel : Towel, Dyed Yarn manufacturing (Including utility service)

- Paper : Paper and Sulphuric Acid (Including utility and Chemical service)

b. Business segments have been identified based on the nature and class of products and services, their customers and assessment of differential risks and returns and financial reporting system within the Company.

c. The geographical segments considered for disclosure are based on markets, broadly as under:

- Sale in the USA

- Sale in rest of the world

d. Segment accounting policies: In addition to the significant accounting policies, applicable to the business as set out in note 1 of schedule 17 "Notes to the Accounts"; the accounting policies in relation to segment accounting are as under:

i. Segment assets and liabilities:

Segment assets include all operating assets used by a segment and consist principally of cash, debtors, inventories and fixed assets including capital work in progress, net of allowances and provisions, which are reported as direct offset in the balance sheet. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities.

ii. Segment revenue and expenses:

Joint revenue and expenses of segments are allocated amongst them on reasonable basis. All other segment revenue and expenses are directly attributable to the segments.

iii. Inter segment sales: Inter segment sales are accounted for at cost and are eliminated in consolidation.

6. The foreign currency exposure of the Company as on March 31, 2011 is as under:

b) Derivative instruments are for hedging foreign exchange risk arising from underlined transaction, firm commitments and/or highly probable forecast transactions.

c) Foreign currency exposures remaining unhedged at the year end:

Against Imports (Creditors) - Euro 0.1 million (Previous year Euro 1.7 million)

- SEK Nil (Previous year SEK 16.3 million)

- USD 1.2 million (Previous year USD 0.7 million)

- JPY Nil (Previous year JPY 11.0 million)

Against Imports (Advance to Creditors) - Euro 0.5 million (Previous year Nil)

- USD 1.3 million (Previous year Nil)

- CHF 0.2 million (Previous year Nil)

Foreign Currency Loans - USD 62.9 million (Previous year USD 60.1 million)

Acceptances - USD 1.1 million (Previous year USD 5.8 million)

- Euro 2.3 million (Previous year Euro 8.3 million)

- SEK 4.3 million (Previous year SEK Nil)

7. The Company hedges its foreign currency fluctuation exposure by way of foreign currency derivative options. The Company has taken various USD/INR options from various banks and as on 31 March 2011, there are 9 open USD put options whose maturities range from May 2012 to January 2013. Additionally, there are 2 open USD put options whose maturities are on April 2011 and June 2011. These derivative options are propriety products of the banks and as such they do not have a ready market. They are marked to a pricing model, which is usually bank specific instead of being marked to market. Based on the marked to a model concept, the loss on valuation amounts to Rs. 541.9 million (Previous year Rs. 885.4 million). However, in the view of the management, due to significant uncertainty associated with the above derivative options whose ultimate outcome depend on future events, the loss on such open derivative options cannot be determined at this stage.

8. The Company has made two grants under its Employee Stock Options Plan, 2007 (the Plan), first on July 9, 2007 and second on July 23, 2009. Pursuant to exercise of options by the employees under second grant, 1,06,836 equity shares have been allotted to the employees. As per the plan, the Company granted options to employees at latest available closing market price prior to the date of grant of options. The quoted price of shares on grant and the exercise price of option is equal, therefore, there is no impact on profit and loss account due to Employee share-based options as the Company is following intrinsic value method.

The Company has not granted any option during the year.

9 The Company's name has been changed subsequent to year end, w.e.f. April 18, 2011 pursuant to fresh certificate of incorporation issued by the Registrar of Companies, Chandigarh.

10 The figures of the previous year have been rearranged / regrouped, wherever considered necessary to facilitate comparison.

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Mar 31, 2010

1. Contingent liabilities not provided for:

(Rs. million)

Particulars As at As at

March 31, 2010 March 31, 2009

Claims* (excluding claims by employees where amounts are not ascertainable) not

acknowledged as debt:

- Sales tax 0.3 0.3

- Service tax - 0.7

- Excise duty 3.7 3.7

- Income tax 25.5 16.3

- Others 7.7 7.7



- All the above matters are subject to legal proceedings in the ordinary course of business. The legal proceedings when ultimately concluded will not, in the opinion of the management, have a material effect on the results of operations or financial position of the Company.

Total Remuneration for the current year includes remuneration paid to the Whole-time Director as minimum remuneration as approved by the Shareholders in its AGM held on August 27, 2009 and as per Schedule XIII to the Companies Act, 1956 and remuneration paid to the Managing Director as approved by the Shareholders in its AGM held on September 24, 2008 and as approved by the Central Government.

Provisions for incremental gratuity liability and leave encashment have not been considered, since the provision is based on actuarial basis for the Company as a whole.

b) Defined benefit plans Gratuity scheme

The amount of gratuity has been computed based on respective employee’s salary and the years of employment with the Company. Gratuity has been accrued based on actuarial valuation as at the Balance Sheet date, carried out by an independent actuary. The amount is funded through trusts’ group gratuity schemes managed by Life Insurance Corporation of India and SBI Life Insurance Company Ltd. The Company is contributing to trusts towards the payment of premium of such group gratuity schemes. The accrued liability of the Company in respect of Gratuity payable to employees is covered in the manner aforesaid.

2.Borrowing cost capitalized (including capital work in progress) during the year amounts to Rs. 109.3 million (Previous year Rs 436.7 million).

3. The following current investments in the units of mutual funds were purchased and sold during the year:

98,93,972 units of Rs. 10 each fully paid up of Magnum Insta Cash Fund Cash Option - Growth 1,82,21,682 units of Rs. 10 each fully paid up of Principal Ultra Short Term Fund - Growth

32,77,335 units of Rs. 10 each fully paid up of Principal Income Short Term Fund - Institutional Plan - Growth 1,22,68,360 units of Rs. 10 each fully paid up of Kotak Liquid (Institutional Premium) - Daily Dividend 1,90,61,298 units of Rs. 10 each fully paid up of Kotak Flexi Debt Scheme Institutional Plan - Growth

2,45,761 units of Rs. 10 each fully paid up of Principal Monthly Income Plan Growth Accumulation Plan 3,383 units of Rs. 1,000 each fully paid up of SBI Gold ETF Mutual Fund 4. The related party disclosures as per Accounting Standard- 18 are as under:

i) Enterprises where control exists

a) Enterprise that controls the Company

- Madhuraj Foundation (directly or indirectly holds majority voting power)

b) Enterprises that are controlled by the Company, i.e. subsidiary Companies – Abhishek Industries Inc.

- Abhishek Global Ventures Limited

- Abhishek Europe SA (ceases w.e.f. May 18, 2009)

ii) Other related parties where transactions have taken place during the year:

a) Enterprises under the common control as the Company – Madhuraj Foundation Limited

- Praneel Corporate Services Limited – Rainbow Retail Limited

b) Enterprise on which Company exercise significant influence – Lotus Integrated Texpark Limited

- Trident Agritech Limited

c) Key management personnel – Mr. Rajinder Gupta

- Mr. Raman Kumar

d) Relative of Key management personnel – Mr. Abhishek Gupta

5. a) Loans and advances includes amounts given to Companies under the same management referred to in section 370 (1B) of the Companies Act, 1956 of Rs. 4.9 million (Previous year Rs. 6.1 million), Rs. 1.0 million (Previous year Rs. 10.0 million) and Rs. Nil (Previous year Rs. Nil), recoverable from Rainbow Retail Limited, Praneel Corporate Services Limited and Madhuraj Foundation Limited respectively {maximum amount outstanding during the year Rs. 9.9 million (Previous year Rs. 16.1 million), Rs. 18.4 million (Previous year Rs.16.2 million) and Rs. Nil (Previous year Rs. 0.2 million) respectively}.

b) Further, as on March 31, 2010, the loans and advances given to entities under clause 32 of the listing agreement includes loans and advances to Abhishek Global Ventures Limited (a wholly owned subsidiary) of Rs 8.3 million (Previous year Rs. 43.1 million) {maximum balance outstanding during the year Rs 45.7 million (Previous year Rs. 48.8 million)} and to Trident Agritech Limited and Lotus Integrated Texpark Limited (both associates) amounting to Rs 58.8 million (Previous year Rs. 145.7 million) and Rs Nil (Previous year Rs. Nil) respectively {maximum balance outstanding during the year Rs 169.3 million (Previous year Rs. 147.3 million) and Rs 3.5 million (Previous year Rs. 5.0 million) respectively}.

6. Segment information:

I. Segment Accounting Policies

a. The business segments comprise of the following:

- Yarn : Yarn manufacturing

- Towel : Towel, Dyed Yarn manufacturing

- Paper and Chemical : Paper and Sulphuric Acid

b. Business segments have been identified based on the nature and class of products and services, their customers and assessment of differential risks and returns and financial reporting system within the Company

c. The geographical segments considered for disclosure are based on markets, broadly as under:

- Sale in the USA

- Sale in rest of the world

d. Segment accounting policies: In addition to the significant accounting policies, applicable to the business as set out in note 1 of schedule 17 “Notes to the Accounts”; the accounting policies in relation to segment accounting are as under:

i. Segment assets and liabilities:

Segment assets include all operating assets used by a segment and consist principally of cash, debtors, inventories and fixed assets including capital work in progress, net of allowances and provisions, which are reported as direct offset in the balance sheet. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities.

ii. Segment revenue and expenses:

Joint revenue and expenses of segments are allocated amongst them on reasonable basis. All other segment revenue and expenses are directly attributable to the segments.

iii. Inter segment sales: Inter segment sales are accounted for at cost and are eliminated in consolidation.

b) Derivative instruments are for hedging foreign exchange risk arising from underlined transaction, firm commitments and/or highly probable forecast transactions.

c) Foreign currency exposures remaining unhedged at the year end:

Against Imports (Creditors) – Euro 1.7 million (Previous year Euro 2.1 million)

- Swedish Kroner 16.3 million (Previous year SEK 16.6 million) – USD 0.7 million (Previous year USD 0.1 million) – JPY 11.0 million (Previous year Nil)

Foreign Currency Loans – USD 60.1 million (Previous year USD 51.3 million)

Acceptances – USD 5.8 million (Previous year USD 8.8 million)

- Euro 8.3 million (Previous year Euro 1.4 million)

7. The Company hedges its foreign currency fluctuation exposure by way of foreign currency derivative options. The Company has taken various USD/INR options from various banks and as at March 31, 2010, there are 17 open put options having a maturity period up to January 2013. These derivative options are proprietary products of banks, which do not have a ready market and as such are marked to a model, which is usually bank specific instead of being marked to market. Based on marked to a model concept the loss on valuation amounts to Rs. 885.4 million (net) (Previous year Rs. 2,707.8 million). However, in the view of the management due to significant uncertainty associated with the above derivative options whose ultimate outcome depends on future events, the loss on such open derivative options cannot be determined at this stage

8. The Compensation Committee of Board of Directors of the Company has granted options to the employees pursuant to Abhishek Employees Stock Options Plan 2007 (the Plan) on July 23, 2009, this being the second grant under the Plan. These options were granted at Rs. 11.20 per option, being the latest available closing market price prior to the date of grant of options in accordance with SEBI guidelines. The quoted price of share on grant and the exercise price of option is equal and therefore there is no impact on profit and loss account due to Employee Share-based options as the Company is following intrinsic value method.

9. Share application money includes Rs. 65.0 million (Previous year Rs. 65.0 million) paid to wholly owned subsidiary.

10. Raw material consumed is net of cash discount of Rs. 18.4 million (Previous year Rs. 12.7 million).

11. The figures of the previous year have been rearranged / regrouped, wherever considered necessary to facilitate comparison.