Notes to Accounts of Virat Industries Ltd.

Mar 31, 2025

2.16 Provision and Contingencies

A provision is recognised when the Company has a present obligation 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 (excluding retirement benefits) are not
discounted to their present value and are determined based on the best estimate required to
settle the obligation at the balance sheet date. These are reviewed at each balance sheet date
and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the
Notes. Contingent assets are not recognised in the financial statements.

2.17 Derivatives and Hedge Accounting

Derivatives are initially recognised at fair value and are subsequently remeasured to their fair
value at the end of each reporting period. The resulting gains/losses is recognised in profit or
loss immediately unless the derivative is designated and effective as a hedging instrument, in
which event the timing of recognition in profit or loss depends on the nature of the hedging
relationship and the nature of the hedged item.

To comply with the principles of ‘fair value hedge’, ‘cash flow hedge’ or ‘hedges of net
investments in foreign operations’ where derivative contracts are designated as hedge
instruments, depending upon documented risk management objective and hedge relationship
established at inception and which are highly effective in offsetting changes in fair values or
cash flows of the hedged item attributable to the hedged risk.

2.18 Operating Segments

Operating segments are reported in a manner consistent with the internal reporting provided to
the chief operating decision-maker. The chief operating decision-maker, who is responsible for
allocating resources and assessing performance of the operating segments, has been identified
as the Corporate Management Committee.

Segments are organized based on business which have similar economic characteristics as
well as exhibit similarities in nature of products and services offered, the nature of production
processes, the type and class of customer and distribution methods. The CODM reviews the
segments primarily from a business similarity perspective as well as from a geographic
perspective.

Segment revenue is reported on the same basis as revenue in the financial statements.
Segment results represents profits before finance charges, investment income and taxes. Inter¬
segment revenue is accounted for on the basis of transactions which are primarily market led.

“Unallocated Corporate Expenses” revenue and expenses relate to initiatives/costs attributable
to the enterprise as a whole and are not attributable to segments.

2.19 Dividend Distribution

To recognised Dividends paid (including income tax thereon) in the financial statements in the
period in which the related dividends are actually paid or, in respect of the Company’s final
dividend for the year, when the same are approved by shareholders.

3. Property, Plant and Equipment and capital work-in-progress Carrying amounts of:

Dues to Micro and Small 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.

31. Employee Benefit Plans

(a) Defined Contribution Plan

The Company makes Provident fund and other funds contributions to defined contribution plans
for qualifying employees. The Company recognised (? ''000) 4240 (Year ended 31 March, 2025
(? ''000) 4080) for Provident Fund contributions.

In February 2019, the Supreme Court of India in its judgement clarified the applicability of
allowances that should be considered to measure obligations under Employees Provident Fund
Act, 1952. The Company has been legally advised that there are interpretative challenges on
the application of judgement retrospectively and as such does not consider there is any probable
obligations for past periods. Accordingly, based on legal advice the Company has made a
provision for provident fund contribution from the date of the Supreme Court order.

(b) Defined Benefit Plan: Gratuity

Provision is made for gratuity and compensated absences based upon actuarial valuation done
at the end of every financial year using ''Projected Unit Credit'' method and it covers all regular
employees. Gains and losses on changes in actuarial assumptions are accounted for in the
Statement of profit and loss.

The Company has funded gratuity with Life Insurance Corporation of India.

The disclosures as required under revised Indian Accounting Standard 19 on "Employee
Benefits" are as follows:

The following table sets out the funded status of the defined benefit schemes and the amount
recognised in the financial statements:

Previous year figures are given in brackets.

Segregation of assets (except trade receivable) into secondary segments has not been done as all
the assets are located and used in India and the Company is of the view that it is not practical to
reasonably allocate such assets and an ad-hoc allocation will not be meaningful.

Information about major customers

Included in revenues arising from direct sales of knitted socks of (In ?''000) 123563, 87296 and 11377
(2023-2024 :(In ?''000) 156671, 81411, Nil and 17109) are revenues of approximately (In ?''000)
216886 (2023 - 2024: (In ?'' 000) 255191) which arose from Federation of Migros Co-operative
Society, Buffalo Private Label Limited and HM Sox Limited. No other single customers contributed
10% or more to the revenue for both 2024-2025 and 2023-2024.

36. The Company has not granted any loans / advances in the nature of loans as stipulated in the
Clause 32 of the Listing Agreement with the Stock Exchanges. For this purpose, the loans to
employees as per the Company’s policy and security deposits paid towards premises taken on
leave and license basis have not been considered.

Capital Management and Financial Instrument Disclosures

37. Capital management

The Company manages capital risk in order to maximize shareholders’ profit by maintaining
sound and optimal capital structure through monitoring of financial ratios, such as debt-to-equity
ratio and net borrowings-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 Company monitors the total capital as comprising of debt and equity. Debt includes all short
term and long term debts. Equity comprises of total shareholders'' equity as reported in the
financial statements.

The Company is not subject to externally enforced capital regulation.

Total Capital as of 31 March 2025 and 31 March 2024 are as follows:

38. Financial Risk Management

The Company''s activities expose it to avariety of financial risks: market risk, credit risk, liquidity
risk. The Company''s primary focus is to foresee the unpredictability of financial markets and seek
to minimize potential adverse effects on its financial performance. The primary market risk to the
Company is foreign exchange risk. The Company uses derivative financial instruments to mitigate
foreign exchange related risk exposures. The Company''s exposure to credit risk is influenced
mainly by the individual characteristic of each customer.

Market Risk

Market risk is the risk that changes in market prices such as foreign exchange rates, interest rates
and equity prices could affect the Company’s income or the value of its holdings of financial
instruments including cash flow. 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.

All such transactions are carried out within the guidelines set by the Board of Directors. Generally,
the Company seeks to apply hedge accounting to manage volatility in profit or loss."

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 carrying amounts of the Company’s foreign currency exposure at the end of the reporting

norinrl aro ac fnllmA/c

The above foreign currency forward contract, the Company has accrued loss on foreign currency
transaction and translation of (?''000) 71 (previous year gain on foreign currency transaction and
translation of (?''000) 29).

Credit Risk

Credit Risk refers to the risk that a counterparty will default on its contractual obligations 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''s exposure is continuously monitored.

Trade Receivables

The Company applies the simplified approach to providing for expected credit losses prescribed by
Ind AS 109, which permits the use of the lifetime expected loss provision for all trade receivables.
The company has computed expected credit losses based on a provision matrix which uses historical
credit loss experience of the Company. Forward-looking information (including macroeconomic
information) has been incorporated into the determination of expected credit losses. Certain sales
are undertaken based on advance payments from customers, which is considered as collateral and
these are considered in determination of expected credit losses, where applicable.

The credit risk on liquid funds such as Fixed deposits with Banks, investment in IRFC Bonds and
derivative financial instruments is limited because the counterparties are banks and financial
institutions with high credit-ratings.

The company considers the probability of default upon initial recognition of asset and whether there
has been a significant increase in credit risk on ongoing basis. To assess whether there is a
significant increase in credit risk, the company compares the risk of default occuring on the asset as
at the reporting date with the risk of default as at the date of initial recognition.

Liquidity Risk

The Company has established an appropriate liquidity risk management framework for the
management of short-term, medium-term 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.

Maturity profile of financial liabilities

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

The amounts included above for financial guarantee contracts are the maximum amounts the
Company could be forced to settle under the arrangement for the full guaranteed amount if that
amount is claimed by the counterparty to the guarantee. Based on expectations at the end of the
reporting period, the Company on siders that it is more likely than not that such an amount will not
be payable under the arrangement.

39. Sensitivity Analysis

Foreign Currency Sensitivity

The sensitivity analysis arises on account of outstanding foreign currency denominated assets and
liabilities, including derivative contracts. The Company considers a sensitivity of 10% in applicable
foreign currency rates, holding all other variables constant.

The following tables demonstrate the sensitivity to a reasonably possible change in USD, GBP and
EURO exchange rates, with all other variables held constant.

If the change in rates decline by a similar percentage, there will be opposite impact of similar amount
on Profit Before Tax and Pre-tax Equtiy Effect.

The sensitivity analysis is unrepresentative of the inherent foreign exchange risk because the
exposure at the end of the reporting period does not reflect the exposure during the
year.

Interest Rate sensitivity

The sensitivity analyses below have been determined based on exposure to interest rate for both
derivative and non-derivative instruments at the end of reporting period. For floating rate liabilities,
analysis is prepared assuming the amount of liability outstanding at the end of the reporting period
was outstanding for the whole year.

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

Offsetting of balances

Certain financial assets and financial liabilities are subject to offsetting where there is currently a
legally enforceable right to set off recognized amounts and the Company intends to either settle on
a net basis, or to realise the asset and settle the liability, simultaneously. Certain derivative financial
assets and financial liabilities are subject to master netting arrangements, whereby in the case of
insolvency, derivative financial assets and financial liabilities will be settled on a net basis.

• Net profit ratio: Significant Change due to higher realization rate.

• Return on Capital employed: No material Change is observed.

41. Fair Value Measurement

Fair value hierarchy

Fair value 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.

Derivatives are valued using valuation techniques with market observable inputs such as foreign
exchange spot rates and forward rates at the end of the reporting period, yield curves, risk free
rate of returns, volatility etc., as applicable.

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.

There has been no change in the valuation methodology for Level 3 inputs during the year. The
Company has not classified any material financial instruments under Level 3 of the fair value
hierarchy. There were no transfers between Level 1 and Level 2 during the year.

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

In terms of our report attached For and on behalf of the Board of Directors

For B. K. KHARE & CO. Adi F. Madan Ayesha K. DadyBurjor Kaizad R. DadyBurjor

Chartered Accountants (Managing Director) (Whole Time Director) (Director)

(FR No. 105102W) DIN : 00023629 DIN : 02949248 DIN : 00022387

Amit Mahadik Chintamani D. Thatte Dashrath B. Pawaskar Vaibhav P. Mandhana

Partner (Director) (Director) (Director)

Membership No. : 125657 DIN : 01071980 DIN : 10728150 DIN : 07007166

Pune, Date: May 15, 2025 Bhavik R. Maisuria Himanshu Zinzuwadia

(Chief Financial Officer) (Company Secretary)

Mumbai, Date: May 15, 2025

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Mar 31, 2024

The Company has not alloted any equity shares for consideration other than cash, bonus shares, nor have any shares been bought back in the 5 years immediately preceding the balance sheet date.

Terms and rights attached to equity shares

The equity shares of the Company rank pari-passu in all respects including voting rights and entitlement to dividend.

* The Company has elected to exercise the option permitted under Section 115BAA of the Incometax Act 1961 as introduced by the Taxation Laws (Amendment) Ordinance, 2019. Accordingly, the Company has recognized provision for income tax for year ended 31^st March, 2024.

** Others includes refunds, adjustment due to completed assessments and impact of rate change.

Additional information to the financial statements 31. Contingent Liabilities and Commitments (to the extent not provided for)			(?'' 000)
	Particulars	As at	As at
		31 March 2024	31 March 2023
	• Contingent Liabilities
	Claims against the company not acknowledged as debt	-	-
	• Commitments
	Estimated amount of contracts remaining to be executed	-	-
	on capital account and not provided for

Dues to Micro and Small 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.

33. Employee Benefit Plansa. Defined Contribution Plan

The Company makes Provident fund and other funds contributions to defined contribution plans for qualifying employees. The Company recognized (?''000) 4,080 (Year ended 31 March, 2023 (?''000) 3,392) for Provident Fund contributions.

In February 2019, the Supreme Court of India in its judgement clarified the applicability of allowances that should be considered to measure obligations under Employees Provident Fund Act, 1952. The Company has been legally advised that there are interpretative challenges on the application of judgement retrospectively and as such does not consider there is any probable obligations for past periods. Accordingly, based on legal advice the

Company has made a provision for provident fund contribution from the date of the Supreme Court order.

b. Defined Benefit Plan: Gratuity

Provision is made for gratuity and compensated absences based upon actuarial valuation done at the end of every financial year using ''Projected Unit Credit'' method and it covers all regular employees. Gains and losses on changes in actuarial assumptions are accounted for in the Statement of profit and loss.

The Company has funded gratuity with Life Insurance Corporation of India.

The disclosures as required under revised Indian Accounting Standard 19 on "Employee Benefits" are as follows:

The following table sets out the funded status of the defined benefit schemes and the amount recognized in the financial statements:

The principal business of the company is of manufacturing of socks. All other activities of the Company revolve around its main business. Hence, there is only one primary reportable business segment as defined by Indian Accounting Standard (Ind AS) 108 - "Segment Reporting". The segment reporting is consistent with the internal reporting provided to the Managing Director regarded as the Chief Operating Decision Maker("CODM").

The Secondary Segment are identified based on the geographical location of customers. The secondary geographical segments of the company consist of regions of United Kingdom, Switzerland, UAE, India and Rest of the World.

Segregation of assets (except trade receivable) into secondary segments has not been done as all the assets are located and used in India and the Company is of the view that it is not practical to reasonably allocate such assets and an ad-hoc allocation will not be meaningful.

Information about major customers

Included in revenues arising from direct sales of knitted socks of (In f''000) 156671, 81411, Nil and 17109 (2022-2023 :(In ?''000) 166377, 58979, 41014 and 22481) are revenues of approximately (In ?''000) 255191 (2022-2023: (In ? 000) 288851) which arose from Federation of Migros Co - operative Society, Buffalo Private Label Limited, T. K. Max and HM Sox Limited. No other single customers contributed 10% or more to the revenue for both 2023 -2024 and 2022 - 2023.

38. The Company has not granted any loans / advances in the nature of loans as stipulated in the Clause 32 of the Listing Agreement with the Stock Exchanges. For this purpose, the loans to employees as per the Company’s policy and security deposits paid towards premises taken on leave and license basis have not been considered.

Capital Management and Financial Instrument Disclosures39. Capital management

The Company manages capital risk in order to maximize shareholders’ profit by maintaining sound and optimal capital structure through monitoring of financial ratios, such as debt-to-equity ratio and net borrowings-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 Company monitors the total capital as comprising of debt and equity. Debt includes all short term and long term debts. Equity comprises of total shareholders'' equity as reported in the financial statements.

The Company is not subject to externally enforced capital regulation.

40. Financial Risk Management

The Company''s activities expose it to a variety of financial risks: market risk, credit risk, liquidity risk. The Company''s primary focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The primary market risk to the Company is foreign exchange risk. The Company uses derivative financial instruments to mitigate foreign exchange related risk exposures. The Company''s exposure to credit risk is influenced mainly by the individual characteristic of each customer.

Market Risk

Market risk is the risk that changes in market prices such as foreign exchange rates, interest rates and equity prices could affect the Company’s income or the value of its holdings of financial instruments including cash flow. 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.

All such transactions are carried out within the guidelines set by the Board of Directors. Generally, the Company seeks to apply hedge accounting to manage volatility in profit or loss."

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 above foreign currency forward contract, the Company has accrued loss on foreign currency transaction and translation of (?''000) 29 (previous year loss on foreign currency transaction and translation of (f''000) 578).

Credit Risk

Credit Risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collatarel , where appropriate, as a means of mitigating the risk of financial loss from defaults. The Company''s exposure are continuously monitored.

Trade Receivables

The Company applies the simplified approach to providing for expected credit losses prescribed by Ind AS 109, which permits the use of the lifetime expected loss provision for all trade receivables. The company has computed expected credit losses based on a provision matrix which uses historical credit loss experience of the Company. Forward-looking information (including macroeconomic information) has been incorporated into the determination of expected credit losses. The Company has taken dealer deposit amounting to Rs. 5 lakh and also certain sales are undertaken based on advance payments from customers, which is considered as collateral and these are considered in determination of expected credit losses, where applicable.

The credit risk on liquid funds such as Fixed deposits with Banks, investment in IRFC Bonds and derivative financial instruments is limited because the counterparties are banks and financial institutions with high credit-ratings.

The company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on ongoing basis. To assess whether there is a significant increase in credit risk, the company compares the risk of default occuring on the asset as at the reporting date with the risk of default as at the date of initial recognition.

Liquidity Risk

The Company has established an appropriate liquidity risk management framework for the management of short-term, medium-term 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.

Maturity profile of financial liabilities

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

Maturity profile of financial Assets

The following table details the Company’s expected maturity for its non-derivative financial assets. The table has been drawn up based on the undiscounted contractual maturities of the financial assets including interest that will be earned on those assets. The inclusion of information on non-derivative financial assets is necessary in order to understand the Company’s liquidity risk management as the liquidity is managed on a net asset and liability basis.

The amounts included above for financial guarantee contracts are the maximum amounts the Company could be forced to settle under the arrangement for the full guaranteed amount if that amount is claimed by the counterparty to the guarantee. Based on expectations at the end of the

reporting period, the Company onsiders that it is more likely than not that such an amount will not be payable under the arrangement.

41. Sensitivity Analysis

Foreign Currency Sensitivity

The sensitivity analysis arises on account of outstanding foreign currency denominated assets and liabilities, including derivative contracts. The Company considers a sensitivity of 10% in applicable foreign currency rates, holding all other variables constant.

The following tables demonstrate the sensitivity to a reasonably possible change in USD, GBP and AUD exchange rates, with all other variables held constant.

If the change in rates decline by a similar percentage, there will be opposite impact of similar amount on Profit Before Tax and Pre-tax Equity Effect.

The sensitivity analysis is unrepresentative of the inherent foreign exchange risk because the exposure at the end of the reporting period does not reflect the exposure during the year.

Interest Rate sensitivity

The sensitivity analyses below have been determined based on exposure to interest rate for both derivative and non-derivative instruments at the end of reporting period. For floating rate liabilities, analysis is prepared assuming the amount of liability outstanding at the end of the reporting period was outstanding for the whole year.

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

Offsetting of balances

Certain financial assets and financial liabilities are subject to offsetting where there is currently a legally enforceable right to set off recognized amounts and the Company intends to either settle on a net basis, or to realize the asset and settle the liability, simultaneously. Certain derivative financial assets and financial liabilities are subject to master netting arrangements, whereby in the case of insolvency, derivative financial assets and financial liabilities will be settled on a net basis.

Current Ratio: No material Change is observed.

Debt Equity Ratio: Significant Change due to increase in borrowing.

Debt Service Coverage Ratio: Due to reduction in EBITDA compared to previous year Return on Equity Ratio: Significant Change due to lower profit compared to previous year Inventory turnover ratio: No material Change is observed.

Trade Receivables turnover ratio: Slight Change due to high proportion of customers paying their debts quickly.

Trade payables turnover ratio: Significant Change due to high proportion of suppliers payment and lower purchases.

Net capital turnover ratio: No material Change is observed.

Net profit ratio: Significant Change due to higher labour and power cost, lower margins due to competition.

Return on Capital employed: Significant Change due to higher labour and power cost, lower margins due to competition.

43. Fair Value Measurement Fair value hierarchy

Fair value 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.

Derivatives are valued using valuation techniques with market observable inputs such as foreign exchange spot rates and forward rates at the end of the reporting period, yield curves, risk free rate of returns, volatility etc., as applicable.

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.

There has been no change in the valuation methodology for Level 3 inputs during the year. The Company has not classified any material financial instruments under Level 3 of the fair value hierarchy. There were no transfers between Level 1 and Level 2 during the year.

44. During the current year the Company has not entered into any transaction with struck off Companies.

45. 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, 2018

1. Corporate Information:

Virat Industries Limited (“the Company”) is a public Company listed on the Bombay Stock Exchange. The Company is a manufacturer and Exporter of premium quality of dress and sport socks for Men, Ladies and Children. The Company also manufactures high quality football socks for many clubs of Europe. The socks are knitted and processed on imported machinery. The socks of the Company are exported to Switzerland, U.K. and Gulf countries for top end markets.

The manufacturing activity and Registered Office of the Company are located in Navsari, South Gujarat. The Head Office of the Company is situated in Mumbai. The marketing function is carried out at the Mumbai Head Office.

2.1 Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting period:

The Company has not alloted any equity shares for consideration other than cash, bonus shares, nor have any shares been bought back in the 5 years immediately preceding the balance sheet date.

Terms and rights attached to equity shares

The equity shares of the Company rank pari passu in all respacts including voting rights and entitlement to dividend.

2.2 Details of shares held by each shareholder holding more than 5% shares:

3 Employee Benefit Plans

(a) Defined Contribution Plan: The Company makes Provident fund and other funds contributions to defined contribution plans for qualifying employees. The Company recognised (Rs. ‘000) 2,483 (Year ended 31 March, 2017 (Rs. ‘000) 2,159) for Provident Fund contributions.

(b) Defined Benefit Plan: Gratuity: Provision is made for gratuity and compensated absences based upon actuarial valuation done at the end of every financial year using ‘Projected Unit Credit’ method and it covers all regular employees. Gains and losses on changes in actuarial assumptions are accounted for in the Statement of profit and loss. The Company has funded gratuity with Life Insurance Corporation of India.

The disclosures as required under revised Indian Accounting Standard 19 on "Employee Benefits" are as follows: The following table sets out the funded status of the defined benefit schemes and the amount recognised in the financial statements:

4 Segment information

The principal business of the company is of manufacturing of socks. All other activities of the Company revolve around its main business. Hence, there is only one primary reportable business segment as defined by Indian Accounting Standard (Ind AS) 108 - “Segment Reporting”. The segment reporting is consistent with the internal reporting provided to the Managing Director regarded as the Chief Operating Decision Maker (“CODM”).

The Secondary Segment are identified based on the geographical location of customers. The secondary geographical segments of the company consist of regions of United Kingdom, Switzerland, UAE, India and Rest of the World.

Previous year figures are given in brackets.

Segregation of assets (except trade receivable) into secondary segments has not been done as all the assets are located and used in India and the Company is of the view that it is not practical to reasonably allocate such assets and an ad-hoc allocation will not be meaningful.

Information about major customers

Included in revenues arising from direct sales of knitted socks of (In Rs.’000) 138,277, 51,009 and 43,495 (2015-2016 : (In Rs.’000) 81,694, 37,239 and 53,521) are revenues of approximately (In *’000) 265,164 (2016-17: (In Rs.’000) 172,454) which arose from Federation of Migros Co-operative Society, Buffalo Private Label Ltd. and RNA Resources. No other single customers contributed 10% or more to the revenue for both 2017-2018 and 2016-2017.

5 Details of leasing arrangements As Lessee

The Company has entered into finance lease arrangements for vehicles, which provide the Company an option to purchase the asset at the end of the lease period.

The Company has acquired premises on lease, which are in the nature of cancellable operating lease as defined in Accounting Standard 19 “Leases”. The lease rent paid and accounted during the year was (Rs. ‘000) 2049 (Previous year ((Rs. ‘000) 2249) as per the terms and conditions of the lease agreements and is charged to the Statement of Profit and Loss.

6 The Company has not granted any loans / advances in the nature of loans as stipulated in the Clause 32 of the Listing Agreement with the Stock Exchanges. For this purpose, the loans to employees as per the Company’s policy and security deposits paid towards premises taken on leave and license basis have not been considered.

7 In the year 2016-17, the Company had received an advance of Rs.’000) 2420/- from a Customer against an order for socks. Since the Customer has wound up its business, the said order has been cancelled. Consequent to this, the said advance has been written back as liabilities no longer required, Note no. 26(ii) and adjusted against the cost of raw material of (Rs.’000) 355/- (Note No. 27) and cost of finished goods Rs.’000) 780/- (Note No. 28) of the said Order.

Notes: First-time adoption of Ind-AS

(i) These financial statements, for the year ended 31st March, 2018, are the first statements prepared by the Company in accordance with Ind-AS. For periods up to and including the year ended 31st March 2017, the Company prepared its financial statements in accordance with statutory reporting requirement in India immediately before adopting Ind AS (‘previous GAAP’).

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

(iii) 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. Further, Indian GAAP profit is reconciled to total comprehensive income as per Ind AS.

(iv) The estimates at 1 April 2016 and at March 31, 2016 are consistent with those made for the same dates in accordance with previous GAAP (after adjustments to reflect any differences in accounting policies).

(v) Ind AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS.

The Company has applied the following exemptions:

Property, Plant and Equipments were carried in the statement of financial position prepared in accordance with previous GAAP on 31 March 2016. The Company has not elected the option to regard carrying values as at 31 March 2015 as deemed cost at the date of transition. Accordingly the Company has elected to measure its items of Property, Plant & Equipment at the date of transition to In AS. Accordingly an amount of (Rs.’000) 148 has been adjusted against opening reserves on date of transition.

(vi) Under previous GAAP, leasehold properties were presented as Fixed Assets and amortized over the period of the lease. Under Ind AS, such properties have been classified as Non Current Assets (current portion presented as Other Current Assets) and have been amortised over the period of the lease, resulting in decrease in Property, Plant and Equipment (PPE) by (Rs.’000) 499/- (NBV) as at 1st April, 2016 and by (Rs.’000)491/- as at 31st March, 2017 and corresponding increase in Other Non Current Assets by by (Rs.’000) 499/- (NBV) as at 1st April, 2016 and by (Rs.’ 000) 491/- as at 31st March, 2017.

Such reclassification has resulted in decrease in Depreciation and amortization expense by (Rs.’000) 8/- for the year ended 31st March 2017 and corresponding increase in Other Expenses, but does not affect profit before tax and total profit for the year ended 31st March, 2017.

(vii) Under previous GAAP, dividends on equity shares (including the tax thereon) was provided in the books of account as proposed by the Directors, pending approval at the Annual General Meeting. Under Ind AS, dividends to shareholders recommended by the Directors after the end of the reporting period but before the financial statements are approved at the Annual General Meeting are not recognised as a liability (including the tax thereon) at the end of the reporting period, but are disclosed separately in the notes. These are recognised when declared by the members in the Annual General Meeting. The effect of this change is an increase in total equity as at 31st March, 2017 of Rs. NIL (1st April, 2016 - (Rs.’000) 14,814/-), but does not affect profit before tax and total profit for the year ended 31st March, 2017.

(viii) Under previous GAAP, actuarial gains and losses were recognised in profit or loss. Under Ind AS, the actuarial gains and losses form part of remeasurement of the net defined benefit liability / asset which is recognised in other comprehensive income. Consequently, the tax effect of the same has also been recognised in other comprehensive income under Ind AS instead of profit or loss. The actuarial gains for the year ended March 31, 2017 were (Rs.’000) 354/- and the tax effect thereon (Rs.’000) 117/-. This change does not affect total equity, but there is a increase in profit before tax of (Rs.’000) 354/-, and in total profit of (Rs.’000) 354/- for the year ended March 31, 2017.

(ix) 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 financial statement of profit and loss. The change does not affect total equity as at April 1, 2016 and March 31, 2017, profit before tax or total profit for the year ended March 31, 2017.

Capital Management and Financial Instrument Disclosures

8 Capital management

The Company manages capital risk in order to maximize shareholders’ profit by maintaining sound and optimal capital structure through monitoring of financial ratios, such as debt-to-equity ratio and net borrowings-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 Company monitors the total capital as comprising of debt and equity. Debt includes all short term and long term debts. Equity comprises of total shareholders’ equity as reported in the financial statements.

The Company is not subject to externally enforced capital regulation.

9 Financial Risk Management

The Company’s activities expose it to avariety of financial risks: market risk, credit risk, liquidity risk. The Company’s primary focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The primary market risk to the Company is foreign exchange risk. The Company uses derivative financial instruments to mitigate foreign exchange related risk exposures. The Company’s exposure to credit risk is influenced mainly by the individual characteristic of each customer.

Market Risk

Market risk is the risk that changes in market prices such as foreign exchange rates, interest rates and equity prices could affect the Company’s income or the value of its holdings of financial instruments including cash flow. 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.

All such transactions are carried out within the guidelines set by the Board of Directors. Generally, the Company seeks to apply hedge accounting to manage volatility in profit or loss.

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 above year-end foreign currency exposures have not been hedged by derivative instruments or otherwise.

Credit Risk

Credit Risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collatarel, where appropriate, as a means of mitigating the risk of financial loss from defaults. The Company’s exposure are continuously monitored.

Trade Receivables

The Company applies the simplified approach to providing for expected credit losses prescribed by Ind AS 109, which permits the use of the lifetime expected loss provision for all trade receivables. The company has computed expected credit losses based on a provision matrix which uses historical credit loss experience of the Company. Forward-looking information (including macroeconomic information) has been incorporated into the determination of expected credit losses. The Company has taken dealer deposit amounting to Rs. 5 lakh and also certain sales are undertaken based on advance payments from customers, which is considered as collateral and these are considered in determination of expected credit losses, where applicable.

The credit risk on liquid funds such as Fixed deposits with Banks, investment in IRFC Bonds and derivative financial instruments is limited because the counterparties are banks and financial institutions with high credit-ratings.

The company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on ongoing basis. To assess whether there is a significant increase in credit risk, the company compares the risk of default occuring on the asset as at the reporting date with the risk of default as at the date of initial recognition.

Liquidity Risk

The Company has established an appropriate liquidity risk management framework for the management of short-term, medium-term 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.

Maturity profile of financial liabilities

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

The amounts included above for financial guarantee contracts are the maximum amounts the Company could be forced to settle under the arrangement for the full guaranteed amount if that amount is claimed by the counterparty to the guarantee. Based on expectations at the end of the reporting period, the Company onsiders that it is more likely than not that such an amount will not be payable under the arrangement.

10 Sensitivity Analysis

Foreign Currency Sensitivity

The sensitivity analysis arises on account of outstanding foreign currency denominated assets and liabilities, including derivative contracts. The Company considers a sensitivity of 10% in applicable foreign currency rates, holding all other variables constant.

The following tables demonstrate the sensitivity to a reasonably possible change in USD, GBP and AUD exchange rates, with all other variables held constant.

If the change in rates decline by a similar percentage, there will be opposite impact of similar amount on Profit Before Tax and Pre-tax Equtiy Effect.

The sensitivity analysis is unrepresentative of the inherent foreign exchange risk because the exposure at the end of the reporting period does not reflect the exposure during the year.

Interest Rate sensitivity

The sensitivity analyses below have been determined based on exposure to interest rate for both derivative and non-derivative instruments at the end of reporting period. For floating rate liabilities, analysis is prepared assuming the amount of liability outstanding at the end of the reporting period was outstanding for the whole year.

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

Offsetting of balances

Certain financial assets and financial liabilities are subject to offsetting where there is currently a legally enforceable right to set off recognized amounts and the Company intends to either settle on a net basis, or to realise the asset and settle the liability, simultaneously. Certain derivative financial assets and financial liabilities are subject to master netting arrangements, whereby in the case of insolvency, derivative financial assets and financial liabilities will be settled on a net basis.

Our Company has not offset any financial asset and financial liability.

11 Fair Value Measurement Fair value hierarchy

Fair value 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.

Derivatives are valued using valuation techniques with market observable inputs such as foreign exchange spot rates and forward rates at the end of the reporting period, yield curves, risk free rate of returns, volatility etc., as applicable.

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.

There has been no change in the valuation methodology for Level 3 inputs during the year. The Company has not classified any material financial instruments under Level 3 of the fair value hierarchy. There were no transfers between Level 1 and Level 2 during the year.

12 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, 2017

1. Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting period:

The Company has not alloted any equity shares for consideration other than cash, bonus shares, nor have any shares been bought back in the 5 years immediately preceding the balance sheet date.

Terms and rights attached to equity shares

The equity shares of the Company rank pari passu in all respects including voting rights and entitlement to dividend.

2. Details of shares held by each shareholder holding more than 5% shares:

Note: 1) Hypothecated by deposit of title deeds of leasehold land and by a charge on buildings, structures, fixtures and fittings, immovable plant and machinery thereon. further secured by a charge on the company''s stocks, book debts, other receivables, movable properties and assets, etc., both present and future, for ''loans repayable on demand'', closing balance as at 31 March, 2017 is NIL.

2) For motor car capitalized during the year Rs. 24,26,500, the company is in the process of registering the motor car in its name.

3. Employee Benefit Plans

(a) Defined Contribution Plan : The Company makes Provident fund and other funds contributions to defined contribution plans for qualifying employees. The Company recognized Rs.2,159,471 (Year ended 31 March, 2016 Rs.1,967,149) for Provident Fund contributions.

(b) Defined Benefit Plan: Gratuity : Provision is made for gratuity and compensated absences based upon actuarial valuation done at the end of every financial year using ''Projected Unit Credit'' method and it covers all regular employees. Gains and losses on changes in actuarial assumptions are accounted for in the Statement of profit and loss. The Company has funded gratuity with Life Insurance Corporation of India.

The disclosures as required under revised Accounting Standard 15 on "Employee Benefits" are as follows:

The following table sets out the funded status of the defined benefit schemes and the amount recognized in the financial statements:

DISCLOSURE UNDER ACCOUNTING STANDARDS

4. Segment information

The principal business of the company is of manufacturing of socks. All other activities of the Company revolve around its main business. Hence, there is only one primary reportable business segment as defined by Accounting Standard 17 - "Segment Reporting".

The Secondary Segment are identified based on the geographical location of customers. The secondary geographical segments of the company consist of regions of United Kingdom, Switzerland, UAE, India and Rest of the World.

ADDITIONAL INFORMATION TO THE FINANCIAL STATEMENTS

5. Details of Leasing Arrangements As Lessee

The Company has entered into finance lease arrangements for vehicles, which provide the Company an option to purchase the asset at the end of the lease period.

The Company has acquired premises on lease, which are in the nature of cancellable operating lease as defined in Accounting Standard 19 "Leases". The lease rent paid and accounted during the year was Rs.2,049,167 (Previous year Rs.2,248,664) as per the terms and conditions of the lease agreements and is charged to the Statement of Profit and Loss.

6. The Company has not granted any loans / advances in the nature of loans as stipulated in the Clause 32 of the Listing Agreement with the Stock Exchanges. For this purpose, the loans to employees as per the Company''s policy and security deposits paid towards premises taken on leave and license basis have not been considered.

ADDITIONAL INFORMATION TO THE FINANCIAL STATEMENTS

7. The Company had received an advance of Rs.2,419,780/- from a Customer against an order for socks. Since the Customer has wound up its business, the said order has been cancelled. Consequent to this, the said advance has been written back as liabilities no longer required, Note no. 20(ii) and adjusted against the cost of raw material of Rs.354,670/- (Note No. 21) and cost of finished goods Rs.780,122 (Note No. 22) of the said Order.

8. 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, 2016

1. Employee Benefit Plans

(a) Defined Contribution Plan

The Company makes Provident fund and other funds contributions to defined contribution plans for. qualifying employees. The Company recognized Rs. 1,967,149 (Year ended 31 March, 2015 Rs 1,668,602) for Provident Fund contributions.

(b) Defined Benefit Plan: Gratuity

Provision is made for gratuity and compensated absences based upon actuarial valuation done at the end of every financial year using ''Projected Unit Credit'' method and it covers all regular employees. Gains and losses on changes in actuarial assumptions are accounted for in the Statement of profit and loss.

The Company has funded gratuity with Life Insurance Corporation of India.

The disclosures as required under revised Accounting Standard 15 on "Employee Benefits" are as follows:

The following table sets out the funded status (unfunded in the previous year) of the defined benefit schemes and the amount recognized in the financial statements:

2. Segment information

The principal business of the Company is of manufacturing of socks. All other activities of the Company revolve around its main business. Hence, there is only one primary reportable business segment as defined by Accounting Standard 17 - "Segment Reporting".

The Secondary Segments are identified based on the geographical location of customers. The secondary geographical segments of the Company consist of regions of United Kingdom, Switzerland, UAE, India and Rest of the World.

Previous year figures are given in brackets.

Segregation of assets (except trade receivable) into secondary segments has not been done as all the assets are located and used in India and the Company is of the view that it is not practical to reasonably allocate such assets and an ad-hoc allocation will not be meaningful.

3. Related Party Transactions Details of related parties: Description of relationship	Names of related parties:
Promoter Company	Shapoorjee Chandabhoy Finvest Private Limited
Associates	Armayesh Enterprise LLP (up to 31 October, 2015)
Key Management Personnel (KMP)	Key Management Personnel:
and their Relatives	Mr. Adi F. Madan - Managing Director
Entities over which promoter group has	Mrs. Ayesha K. DadyBurjor - Whole-time Director (w.e.f. 1 September, 2014) Their Relatives: Mr. Naozer J. Aga Mr. Armand N. Aga Mr. Kaizad R. DadyBurjor Mrs. Ayesha A. Madan Mr. Jehan Adi Madan Armayesh Consultancy and Agencies Private Limited
significant influence	(Up to 31 July, 2015)
Armayesh Embroideries Private Limited Note: Related parties have been identified by the Management.

4 The Company has not granted any loans / advances in the nature of loans as stipulated in the Clause 32 of the Listing Agreement with the Stock Exchanges. For this purpose, the loans to employees as per the Company''s policy and security deposits paid towards premises taken on leave and license basis have not been considered.

5. 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, 2015

1. Corporate Information:

Virat Industries Limited ("the Company") is a Manufacturer and Exporter of premium quality of dress and sport socks for Men, Ladies and Children. The Company also manufactures high quality football socks for many prestigious clubs of Europe. The socks are knitted and processed on imported machinery. The socks of the Company are exported to Switzerland, U.K and Gulf countries for top end markets.

The manufacturing activity and Registered Office of the Company are located in Navsari, South Gujarat. The Head Office of the Company is situated in Mumbai. The marketing function is carried out at the Mumbai Head Office.

Virat Industries Limited is a public imited Company, listed on the Bombay Stock Exchange.

Particulars As at As at 31 March, 2015 31 March, 2014 Rs. Rs.

2. Contingent Liabilities and Commitments (to the extent not provided for)

(i) Contingent Liabilities

Claims against the Company not acknowledged as debt Not Not Ascertained Ascertained

* For Assessment Year 2005-06 and 2006-07, the Income Tax Department has adjusted the carried forward of losses and unabsorbed depreciation in computing the benefit under section 10B of the Income Tax Act, 1961. During the year Company received favourable order in Income-tax Appellate Tribunal for the Assessment Year 2006-07 and the Income-tax Department, Navsari has referred the said matter to the High Court of Gujarat at Ahmedabad. Hence, the matter has been referred to the High Court of Gujarat at Ahmedabad for Assessment Year 2005-06 and 2006-07. Additional liability, if any, is not ascertained.

(ii) Commitments

Estimated amount of contracts remaining to be executed

on capital account and not provided for 200,000 -

Total 200,000 -

3. Employee Benefit Plans

(a) Defined Contribution Plan

The Company makes Provident fund and other funds contributions to defined contribution plans for qualifying employees. The Company recognised Rs. 1,668,602 (Year ended 31 March, 2014 Rs. 1,501,137) for Provident Fund contributions.

(b) Defined Benefit Plan: Gratuity

Provision is made for gratuity and compensated absences based upon actuarial valuation done at the end of every financial year using 'Projected Unit Credit' method and it covers all regular employees. Gains and losses on changes in actuarial assumptions are accounted for in the Statement of profit and loss.

During the previous year the Company funded gratuity with LIC of India.

The disclosures as required under revised Accounting Standard 15 on "Employee Benefits" are as follows: The following table sets out the funded status (unfunded in the previous year) of the defined benefit schemes and the amount recognised in the financial statements:

4. Segment information

The principal business of the Company is of manufacturing of socks. All other activities of the Company revolve around its main business. Hence, there is only one primary reportable business segment as defined by Accounting Standard 17 - "Segment Reporting".

The Secondary Segments are identified based on the geographical location of customers. The secondary geographical segments of the Company consist of regions of United Kingdom, Switzerland, UAE, India and Rest of the World.

5. Related Party Transactions Details of related parties:

Description of relationship Names of related parties:

Promoter Company Shapoorjee Chandabhoy Finvest Private Limited

Associates Armayesh Enterprise LLP

Key Management Personnel (KMP) Key Management Personnel:

and their Relatives Mr. Adi F. Madan - Managing Director

Mrs. Ayesha K. DadyBurjor - Whole-time Director (w.e.f. 01/09/2014)

Their Relatives:

Mr. Naozer J. Aga Mr. Armand N. Aga Mr. Kaizad R. DadyBurjor Mrs. Ayesha A. Madan Mr. Jehan Adi Madan

Entities over which promoter group Armayesh Consultancy and Agencies Private Limited has significant influence Armayesh Embroideries Private Limited

Note: Related parties have been identified by the Management.

6. Details of Leasing Arrangements As Lessee

The Company has acquired premises on lease, which are in the nature of cancellable operating lease as defined in Accounting Standard 19 "Leases". The lease rent paid and accounted during the year was Rs. 1,138,694 (Previous year Rs. 809,400) as per the terms and conditions of the lease agreements and is charged to the Statement of Profit and Loss.

7. The Company has not granted any loans / advances in the nature of loans as stipulated in the Clause 32 of the Listing Agreement with the Stock Exchanges. For this purpose, the loans to employees as per the Company's policy and security deposits paid towards premises taken on leave and license basis have not been considered.

8. Effective from 1 April, 2014, the Company has charged depreciation based on the remaining useful life of the assets as per the requirements of Schedule II of the Companies Act, 2013 ("the Act"). Consequent to this, depreciation charge for the year ended on 31 March, 2015 is higher by Rs. 1,763,765. Pursuant to the transition provisions prescribed in Note 7(b) of 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 1 April, 2014, and has adjusted an amount of Rs. 623,393 (Net of Deferred Tax of Rs. 307,920) against opening Surplus balance in the Statement of Profit and Loss under Reserves and Surplus in respect of assets wherein the remaining useful life of the assets is Nil.

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, 2014

1 Corporate Information:

Virat Industries Limited is a manufacturer and Exporter of premium quality of dress and sport socks for Mens, Ladies and Children. The Company also manufactures high quality football socks for many prestigious clubs of Europe. The socks are knitted and processed on imported machinery. The socks of the Company are exported mainly to Switzerland, U.K and Gulf countries for top end markets. The manufacturing activity and Registered Office of the Company are located in Navsari, South Gujarat. The Head Office of the Company is situated in Mumbai. The marketing function is carried out at the Mumbai Head Office. Virat Industries Limited is a Public Limited Company, listed on the Bombay Stock Exchange.

Particulars As at As at 31 March, 2014 31 March, 2013 2 Contingent Liabilities and Commitments (to the extent not provided for)

i Contingent Liabilities

a Claims against the Company not acknowledged as debt Not Not Ascertained Ascertained

- For Assessment Year 2005-06 and 2006-07, the Income Tax Department has adjusted the carried forward of losses and unabsorbed depreciation in computing the benefit under section 10B of the Income Tax Act, 1961. The matter has been referred to the High Court of Gujarat at Ahmedabad for Assessment Year 2005-06 and is pending before the Income Tax Appellate Tribunal for Assessment Year 2006-07. Additional liability, if any, is not ascertained.

Total - -

DISCLOSURE UNDER ACCOUNTING STANDARDS

3 Employee Benefit Plans

(a) Defined Contribution Plan

The Company makes Provident fund and other funds contributions to defined contribution plans for qualifying employees. The Company recognised Rs. 1,501,137/- (Year ended 31st March, 2013 Rs. 1,335,804/-) for Provident Fund contributions.

(b) Defined Benefit Plan: Gratuity

Provision is made for gratuity and compensated absences based upon actuarial valuation done at the end of every financial year using ''Projected Unit Credit'' method and it covers all regular employees. Gains and losses on changes in actuarial assumptions are accounted for in the statement of profit and loss. During the year the Company funded gratuity with LIC of India.

The disclosures as required under revised Accounting Standard 15 on "Employee Benefits" are as follow: The following table sets out the funded status(unfunded in the previous year) of the defined benefit schemes and the amount recognised in the financial statements:

4 Segment information

The principal business of the company is of manufacturing of socks. All other activities of the Company revolve around its main business. Hence, there is only one primary reportable business segment as defined by Accounting Standard 17 - "Segment Reporting".

The Secondary Segment are identified based on the geographical location of customers. The secondary geographical segments of the company consist of regions of United Kingdom, Switzerland, UAE, India and Rest of the World.

Previous year figures are given in brackets.

Segregation of assets (except trade receivable) into secondary segments has not been done as all the assets are located and used in India and the Company is of the view that it is not practical to reasonably allocate such assets and an ad-hoc allocation will not be meaningful.

5 Related Party Transactions

Details of related parties:

Description of relationship Names of related parties:

Promoter Company Shapoorjee Chandabhoy Finvest Private Limited

Key Management Personnel (KMP) Adi F. Madan

Entities over which promoter group has Armayesh Consultancy and Agencies Private Limited

significant influence Armayesh Embroideries Private Limited

Associates Armayesh Enterprise LLP

Note: Related parties have been identified by the Management.

6 Details of Leasing Arrangements

As Lessee

The Company has acquired premises on lease, which are in the nature of cancellable operating lease as defined in Accounting Standard 19 "Leases". The future lease obligations payable within one year aggregate to NIL (Previous Year Nil). The lease rent paid and accounted during the year was Rs. 809,400/- (Previous year Rs.735,480/-) as per the terms and conditions of the lease agreements and is charged to the Statement of Profit and Loss.

7 The Company has not granted any loans / advances in the nature of loans as stipulated in the Clause 32 of the Listing Agreement with the Stock Exchanges. For this purpose, the loans to employees as per the Company''s policy and security deposits paid towards premises taken on leave and license basis have not been considered.

8 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, 2013

1. Corporate tofanmaiion

Virat Industries Limited is a Manufacturer and Exporter of premium quality of dress and sport socks for .Mens, Ladies and Children. The Company also manufactures high quality football socks for many prestigious clubs of Europe. The socks are knitted and processed on imported machinery.

The installed capacity of the Company is 50 lakhs pairs per annum. 95 to 96 % of the revenue of the Company is derived from export sales. The socks of the Company are exported to Switzerland, U.K and Gulf countries for top end markets.

The manufacturing activity and Registered Office of the Company are located in Navsari, South Gujarat. The Head Office of the Company is situated in Mumbai. The marketing function is carried out at the Mumbai Head Office.

Virat Industries Limited is a public limited Company, listed on the Bombay Stock Exchange.

2 Employee Benefit Plans

(a) Defined Contribution Plan

The Company makes Provident Fund contributions to defined contribution plans for qualifying employees. The Company recognised Rs. 798,666 (Year ended 31 March, 2012 Rs. 1,204,302) for Provident Fund contributions.

(b) Defined Benefit Plan: Gratuity

Provision is made for unfunded gratuity and compensated absences based upon actuarial valuation done at the end of every financial year using "Projected Unit Credit" method and it covers all regular employees. Gains and losses on changes in actuarial assumptions are accounted for in the Profit and Loss account.

The disclosures as required under revised Accounting Standard 15 on "Employee Benefits" are as follow: The Companies gratuity plan is not funded and liability is provided for in the account.

3 Segment information

The principal business of the Company is of manufacturing of socks. All other activities of the Company revolve around its main business. Hence, there is only one primary reportable business segment as defined by Accounting Standard 17 - "Segment Reporting".

The Secondary Segments are identified based on the geographical location of customers. The secondary geographical segments of the Company consist of regions of United Kingdom, Switzerland, UAE, India and Rest of the World.

4 The Company has not granted any Joans / advances in the nature of loans as stipulated in the Clause 32 of the Listing Agreement with the Stock Exchanges. For this purpose, the loans to employees as per the Company''s policy and security deposits paid towards premises taken on leave and license basis have not been considered.

5 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

1. Corporate Information

Virat Industries Limited is manufacturer and exporter of premium quality of dress and sport socks for Mens, Ladies and Children. The Company also manufactures high quality football socks for many prestigious clubs of Europe. The socks are knitted and processed on state of art imported machinery. The installed capacity of the Company is 47 lakhs pairs per annum. 95 to 96% sale revenue of the Company is derived from export sales. The socks of the Company are exported to Switzerland, U.K and Gulf countries for top end markets.

The manufacturing activity and registered office of the Company are located in Navsari, South Gujarat. The Head Office of the Company is situated in Mumbai. The marketing function is carried out at Mumbai Head Office.

Virat Industries Limited is public limited Company, listed on Bombay Stock Exchange.

Particulars As at 31 March, 2012 As at 31 March, 2011 Rs. Rs.

2 Contingent Liabilities and Commitments (to the extent not provided for) (i) Contingent Liabilities Not Not Ascertained Ascertained (a) Claims against the company not acknowledged as debt

- For Assessment Year 2005-06 and 2006-07, the Income Tax Department has adjusted the carried forward of losses and unabsorbed depreciation in computing the benefit under section 10B of the Income Tax Act, 1961. The matter has been referred to the High Court of Gujarat at Ahmedabad for Assessment Year 2005-06 and is pending before the Income Tax Appellate Tribunal for Assessment Year 2006-07. Additional liability, if any, is not ascertained.

3 Employee Benefit Plans

(a) Defined Contribution Plan

The Company makes Provident Fund contributions to defined contribution plans for qualifying employees. The Company recognised Rs. 1,204,302 (Year ended 31 March, 2011 Rs. 1,103,333) for Provident Fund contributions.

(b) Defined Benefit Plan: Gratuity

Provision is made for unfunded gratuity and compensated absences based upon actuarial valuation done at the end of every financial year using 'Projected Unit Credit' method and it covers all regular employees. Gains and losses on changes in actuarial assumptions are accounted for in the Profit and Loss Account.

4 Segment information

The principal business of the company is of manufacturing of socks. All other activities of the Company revolve around its main business. Hence, there is only one primary reportable business segment as defined by Accounting Standard 17 - "Segment Reporting".

The Secondary Segment are identified based on the geographical location of customers. The secondary geographical segments of the company consist of regions of United Kingdom, Switzerland, UAE, India and Rest of the World.

Previous year figures are given in brackets. Segregation of assets (except sundry debtors) into secondary segments has not been done as all the assets are located and used in India and the. Company is of the view that it is not practical to reasonably allocate such assets and an ad-hoc allocation will not be meaningful.

5 the Company has not granted any loans / advances in the nature of loans as stipulated in the Clause 32 of the Listing Agreement with the Stock Exchanges. For this purpose, the loans to employees as per the Company's policy and security deposits paid towards premises taken on leave and license basis have not been considered.

6 The Revised Schedule VI has become effective from 1 April, 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. Capital Commitments:

The estimated amounts of contracts remaining to be executed on capital account, and not provided for (net of advance) as at March 31,2011 NIL (Previous year:Rs 206,919/-)

2. Contingent Liabilities

a) For Assessment Years 2005-06 and 2006-07 the Income Tax Department has adjusted the carried forward losses and unabsorbed depreciation in computing the benefit u/s 10B of the Income Tax Act, 1961.

The matter has been referred to the High Court of Gujarat at Ahmedabad for Assessment Year 2005-06 and is pending before the Income Tax Appellate Tribunal for Assessment Year 2006-07. Additional liability, if any, is not ascertained.

b) For Assessment Year 2009-10 the Income tax department has served an intimation u/s 143(1) of the Income Tax, 1961 demanding Rs 81,70,174/-. The company has also preferred rectification application, since the demand has arisen on account of non-setting off of the brought forward loss against the business income for the year under consideration. The Company is in appeal with the Commissioner of Income-Tax (Appeal). Additional liability of Rs 54,20,173/- may arise on the said matter.

3. Depreciation

a) Depreciation on fixed assets has been provided on Written Down Value basis in accordance with the provisions of section 205(2)(a) of the Companies Act, 1956, in respect of the assets acquired/ purchased upto March 31,1995.

b) Depreciation on assets acquired/purchased since April 1, 1995, has been provided on Straight Line Basis in accordance with the provisions of section 205(2)(b) of the Companies Act, 1956.

c) The depreciation under sections 205(2)(a) and 205(2)(b), as stated above, has been provided at the rates specified in Schedule XIV of the Companies Act, 1956, and has been provided on pro-rata basis according to the period each asset was put to use during the period.

4. Contributions are made to Provident Fund and Family Pension Fund which covers all regular employees. Amount recognized as expense in respect of these defined contribution plans, aggregate to Rs 1,103,333/- (previous year Rs 952,016/-).

Provision is made for unfunded gratuity and compensated absences based upon actuarial valuation done at the end of every financial year using 'Projected Unit Credit' method and it covers all regular employees: Gains and losses on changes in actuarial assumptions are accounted for in the Profit and Loss account.

The above excludes amounts pertaining to gratuity and compensated absences for the year as the same is provided on the basis of the actuarial valuation for the Company as a whole.

Computation of Net Profit in accordance with the provisions of section 349 of the Companies Act, 1956, has not been given as commission by way of percentage of profits is not payable for the year to the Directors of the Company.

5. The principal business of the Company is of manufacturing socks. All other activities of the Company revolve around its main business. Hence, there is only one primary reportable business segment as defined by Accounting Standard 17 - "Segment Reporting" (AS 17).

The Secondary Segments are identified based on the geographical location of customers. The secondary geographical segments of the company consist of regions of United Kingdom, Switzerland, UAE, India and Rest of the World.

*As certified by management and relied upon by the auditors.

"Actual production excludes 1,160,107 pairs (previous year 1,461,400 pairs) manufactured by the job workers.

6. Assets acquired on Lease

a) The Company has acquired premises on lease, which are in the nature of Operating lease as defined in Accounting Standard 19 "Leases". The future lease obligations payable within one year aggregate to NIL (Previous Year Rs. 288,000/-). The lease rent paid and accounted during the year was Rs 288,000/- (Previous Year Rs 205,219/-) as per the terms and conditions of the lease agreements and is charged to the profit and loss account.

general description of Lease terms:

(i) Lease rentals are charged on the basis of agreed terms. (ii) Asset is taken on lease over a period of 36 months.

7. The Company has not granted any loans / advances in the nature of loans as stipulated in the Clause 32 of the Listing Agreement with the Stock Exchanges. For this purpose, the loans to employees as per the Company's policy and security deposits paid towards premises taken on leave and license basis have not been considered.

8. The dues outstanding to Micro, Small and Medium Enterprises under the Micro, Small and Medium Enterprises Development Act, 2006 are based on the information available with the Company and hence the disclosures as required under the said Act have not been given.

9. Figures of the previous year have been regrouped wherever necessary to correspond with those of the current year.

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Mar 31, 2010

1. Capital Commitments:

The estimated amounts of contracts remaining to be executed on capital account, and not provided for (net of advance) as at March 31, 2010 Rs. 206,919/- (Previous year: Rs. 348,660/-)

Current Year Previous Year

2. Contingent Liabilities Rupees Rupees

Guarantees given by the Bank on behalf of the Company to Excise/ Customs authorities NIL 335,000



3. Depreciation

a) Depreciation on fixed assets has been provided on Written Down Value basis in accordance with the provisions of section 205(2)(a) of the Companies Act, 1956, in respect of the assets acquired/purchased upto March 31,1995.

b) Depreciation on assets acquired/purchased since April 1, 1995, has been provided on Straight Line Basis in accordance with the provisions of section 205(2)(b) of the Companies Act, 1956.

c) The depreciation under sections 205(2)(a) and 205(2)(b), as stated above, has been provided at the rates specified in Schedule XIV of the Companies Act, 1956, and has been provided on pro-rata basis according to the period each asset was put to use during the period.

4. Contributions are made to Provident Fund and Family Pension Fund which covers all regular employees. Amount recognized as expense in respect of these defined contribution plans, aggregate to Rs.952,016/- (previous year Rs. 718,917/-).

Provision is made for gratuity and leave encashment based upon actuarial valuation done at the end of every financial year using Projected Unit Credit method and it covers all regular employees. Gains and losses on changes in actuarial assumptions are accounted for in the Profit and Loss account.

5. The principal business of the Company is of manufacturing socks. All other activities of the Company revolve around its main business. Hence, there is only one primary reportable business segment as defined by Accounting Standard 17 - "Segment Reporting" (AS 17).

The Secondary Segments are identified based on the geographical location of customers. The secondary geographical segments of the company consist of regions of United Kingdom, Switzerland, India and Rest of the World.

6. As required under Accounting Standard 18 on "Related party disclosures" (AS 18), following are details of transactions during the period with the related parties of the Company:

(a) Names of related parties and description of relationship

Promoter Company - (which can Shapoorjee Chandabhoy Finvest Pvt. Ltd. exercise significant influence)

Others Related Company - (Other entities Armayesh Consultancy and Agencies Pvt. Ltd. which can exercise significant influence) Indijack Limited

Key Management Personnel Mr. Adi F. Madan



7. Assets acquired on Lease

The Company has acquired premises on lease, which are in the nature of Operating lease as defined in Accounting Standard 19 "Leases". The future lease obligations payable within one year aggregate to Rs. 288,000/- (Previous Year Rs. 127,700/-). The above lease agreement was extended during the year for a period of one year. The lease rent paid and accounted during the year was Rs. 205,219/- (Previous Year Rs. 219,000/-) as per the terms and conditions of the lease agreement and is charged to the profit and loss account.

8. The Company has not granted any loans advances in the nature of loans as stipulated in the Clause 32 of the Listing Agreement with the Stock Exchanges. For this purpose, the loans to employees as per the Companys policy and security deposits paid towards premises taken on leave and license basis have not been considered.

9. The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, as required under the said Act have been given accordingly.

10. Figures of the previous year have been regrouped wherever necessary to correspond with those of the current year.