Aarnav Fashions Ltd. இன் கணக்கு குறிப்புகள்

Mar 31, 2025

P. Provisions, Contingent liabilities, Contingent assets and Commitments

Provisions are recognized when the Company has a present obligation from a past event, likely to result in outflow of resources,
and can be reliably estimated. Reimbursements are recognized separately when virtually certain and are netted against the
related expense in profit and loss.

If material, provisions are discounted using a current pre-tax rate. The unwinding of the discount is recognized as a finance cost.

Contingent liabilities are disclosed when:

1. Obligation exists but outflow is not probable,

2. No reliable estimate is possible, or

3. It is a possible obligation, unless outflow is remote.

Commitments include purchase orders (net of advances) issued for asset completion.

Provisions, contingent liabilities, assets, and commitments are reviewed at each balance sheet date.

Q. Dividend

In accordance with Ind AS 10 - Events after the Reporting Period, the Company recognises a liability for dividends only when the
obligation arises, i.e., when the dividend is approved by the shareholders (in the case of final dividend) or declared by the Board
of Directors (in the case of interim dividend) before the end of the reporting period.

During the year ended 31 March 2025, the Company paid an amount of ^2,11,19,314.00 towards the final dividend relating to
the financial year 2023-24.

No interim dividend was declared, and no final dividend has been proposed for the year ended 31 March 2025. Accordingly, no
provision for dividend has been made in these financial statements for the year ended 31 March 2025.

R. Earnings per share

Basic EPS is calculated by dividing net profit attributable to equity shareholders by the weighted average number of equity
shares outstanding during the period, adjusted for bonus shares and similar events.

Diluted EPS adjusts both profit and shares for the effects of all dilutive potential equity shares, assuming conversion at the
beginning of the period or issue date, if later. Only dilutive instruments that reduce EPS or increase loss per share are
considered.

S. Statement of cash flows

Cash flows are reported using the indirect method. Net profit before tax is adjusted for non-cash items, deferrals, accruals, and
income/expenses related to investing or financing. Cash flows are classified into operating, investing, and financing activities.

Operating Cycle

The operating cycle is the time between the acquisition of assets for processing and their realization in cash and cash
equivalents. The company has identified twelve months as its operating cycle.

T. Foreign currency translation

Items in the financial statements are measured using the currency of the primary economic environment in which the entity
operates (''functional currency''). The financial statements are presented in Indian Rupee (INR), which is the company''s functional
and presentation currency.

Transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency spot rates on the transaction date. Monetary
assets and liabilities in foreign currencies are translated at functional currency spot rates at the reporting date.

Non-monetary items measured at historical cost in foreign currency are translated using exchange rates at the transaction dates.
Non-monetary items measured at fair value in foreign currency are translated using exchange rates at the date fair value is
determined. Gains or losses on translation of non-monetary items measured at fair value are recognized in line with the gain or
loss on the fair value change (i.e., in OCI or profit or loss, as applicable).

U. Fair value measurement

The company measures financial instruments, including derivatives, at fair value at each balance sheet date.

Fair value is the price to sell an asset or transfer a liability in an orderly transaction between market participants at the
measurement date, based on the principal market or, if unavailable, the most advantageous market accessible to the company.

Fair value is measured using assumptions market participants would use, assuming they act in their economic best interest.
Valuation techniques applied maximize relevant observable inputs and minimize unobservable inputs.

All assets and liabilities measured at fair value are categorized in a hierarchy based on the lowest significant input:

• Level 1 - Quoted prices in active markets for identical assets or liabilities.

• Level 2 - Valuation techniques with observable inputs directly or indirectly.

• Level 3 - Valuation techniques with unobservable inputs.

Transfers between levels are assessed at each reporting date by re-assessing the categorization.

The Board of Directors sets policies for recurring and non-recurring fair value measurements. It includes heads of investment
properties, mergers & acquisitions, risk management, financial controllers, and CFO.

External valuers are engaged for significant assets, selected annually by the Board of Directors based on expertise,
independence, and standards. Valuers rotate every three years. Management decides valuation techniques and inputs with
external valuers.

At each reporting date, management reviews asset and liability value movements by verifying valuation inputs and comparing
changes with external sources.

Interim valuation results are presented to the Audit Committee and independent auditors, including major valuation
assumptions.

For disclosures, the company classifies assets and liabilities by nature, risk, and fair value hierarchy level.

This note summarizes the fair value accounting policy. Other disclosures include:

¦ Valuation methods, significant estimates and assumptions;

¦ Quantitative fair value hierarchy disclosures;

¦ Investment in unquoted equity shares (discontinued operations);

¦ Financial instruments (including amortized cost).

V. Exceptional items

Occasionally, items of income or expense related to the company''s ordinary activities, due to their size, type, or incidence, are
classified as exceptional items. Such items are disclosed separately in the notes to the financial statements to enhance
understanding of the company''s performance.

W. Rounding off

All amounts disclosed in the financial statements and notes have been rounded off to the nearest Lakhs as per the requirements
of Schedule III, unless otherwise stated.

• Recent accounting pronouncements

The Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under the Companies
(Indian Accounting Standards) Rules, as amended from time to time. For the year ended March 31, 2025, MCA has notified the
following amendments applicable from April 1, 2024:

♦ Ind AS 117 - Insurance Contracts, which replaces Ind AS 104 and establishes principles for recognition, measurement,
presentation, and disclosure of insurance contracts.

♦ Amendment to Ind AS 116 - Leases, specifically relating to accounting for sale and leaseback transactions by seller-lessees.

The Company has evaluated the applicability and impact of these amendments and has determined that they are not applicable
to its operations, as the Company does not engage in insurance business or sale and leaseback lease transactions under Ind AS.
Accordingly, these amendments have no significant impact on the Company''s financial statements for the year ended March 31,
2025.

• Other Statutory Informations:

1. Details of Benami Property: The Company does not have any Benami property, where any proceeding has been initiated or
pending against the Company for holding any Benami property.

2. Details of Charges: The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory period.

3. Details of crypto currency or virtual currency: The Company has not traded or invested in Crypto currency or Virtual Currency
during the financial year.

4. Utilization of borrowed funds and share premium:

The Company has not received any fund from any person(s) or entity(is), 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.

5. Undisclosed income: The Company does not have any 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.

6. Willful Defaulter: The Company is not declared as willful defaulter by any bank or financial institution (as defined under the
Companies Act, 2013) or consortium thereof or other lender in accordance with the guidelines on willful defaulters issued by the
Reserve Bank of India.

7. Compliance with number of layers of companies: As the company has no holding or subsidiary company, requirement with
respect to number of layers prescribed under clause 87 of sub section 2 of the Companies Act, 2013 read with companies
(restriction on number of layers) rules, 2017 is not applicable.

8. Valuation of PP&E, intangible asset and investment property: The Company has not revalued any of its Property, Plant and
Equipment (including Right-of-Use Assets) during the year.

9. The Company has no transaction with any company struck-off under section 248 of the Companies Act, 2013 or Section 560 of
the Companies Act, 1956

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

FOR, NAHTA JAIN & ASSOCIATES AARNAV FASHIONS LIMITED

CHARTERED ACCOUNTANTS

FIRM REGN. NO. 106801W

CHAMPALAL AGARWAL SUMIT AGARWAL

DIN:01716421 DIN: 00356863

CHAIRMAN AND DIRECTOR MANAGING DIRECTOR

(CA. GAURAV NAHTA)

PARTNER

MEM. NO. 116735

MILEE KAMDAR RADHAKISHAN SHARMA

COMPANY SECRETARY & COMPLIANCE OFFICER CHIEF FINANCIAL OFFICER

PLACE: AHMEDABAD

DATE: 30-05-2025

---

Mar 31, 2024

P. Provisions, Contingent liabilities, Contingent assets and Commitments:

General

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

certain. The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.

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

Contingent liability is disclosed in the case of:

1. A present obligation arising from the past events, when it is not probable that an outflow of resources will be required to settle the obligation;

2. A present obligation arising from the past events, when no reliable estimate is possible;

3. A possible obligation arising from the past events, unless the probability of outflow of resources is remote.

Commitments include the amount of purchase order (net of advances) issued to parties for completion of assets.

The company provides for the expenses to reclaim the quarries used for mining. The total estimate of reclamation expenses is apportioned over the estimate of mineral reserves and a provision is made based on the minerals extracted during the year. Mines reclamation expenses are incurred on an ongoing basis and until the closure of the mine. The actual expenses may vary based on the nature of reclamation and the estimate of reclamation expenditure.

Provisions, contingent liabilities, contingent assets and commitments are reviewed at each balance sheet date.

Q. Dividend

Provision is made for the amount of any dividend declared, being appropriately authorized and no longer at the discretion of the entity, on or before the end of the reporting period but not distributed at the end of the reporting period.

The Company recognizes a liability to make cash distributions to equity holders of the Company when the distribution is authorized, and the distribution is no longer at the discretion of the Company. Final dividends on shares are recorded as a liability on the date of approval by the shareholders and interim dividends are recorded as a liability on the date of declaration by the Company''s Board of Directors. The interim dividends declared during the year are approved by the Board of Directors.

However no dividend has been paid by Company during the year.

R. Earnings per share

Basic earnings per share are calculated by dividing the net profit for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Earnings considered in ascertaining the company''s earnings per share is the net profit for the period after deducting preference dividends and any attributable tax thereto for the period. The weighted average

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events, such as bonus shares, other than the conversion of potential equity shares that have changed the number of equity shares outstanding, without a corresponding change in resources.

For the purpose of calculating diluted earnings per share, the profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares. Dilutive potential equity shares are deemed converted as of the beginning of the period, unless they have been issued at a later date. The diluted potential equity shares have been arrived at, assuming that the proceeds receivable were based on shares having been issued at the average market value of the outstanding shares. In computing dilutive earnings per share, only potential equity shares that are dilutive and that would, if issued, either reduce future earnings per share or increase loss per share, are included.

S. Use of estimates and judgements

The presentation of the financial statements is in conformity with the Ind AS which requires the management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses and disclosure of contingent liabilities. Such estimates and assumptions are based on management''s evaluation of relevant facts and circumstances as on the date of financial statements. The actual outcome may differ from these estimates.

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

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment within the next financial year are included in the following notes:

• Current tax

• Measurement of defined benefit obligations

• Fair valuation of unlisted securities

T. Statement of cash flows

Cash flow are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals of accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and finance activities of the company are segregated.

U. Current and 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:

i. Expected to be realized or intended to be sold or consumed in normal operating cycle;

ii. Held primarily for the purpose of trading;

iii. Expected to be realized within twelve months after the reporting period, or

iv. 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. V /

T-^ /

A liability is current when:

i. It is expected to be settled in normal operating cycle;

ii. It is held primarily for the purpose of trading;

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

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

All other liabilities are classified as non-current.

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

Operating Cycle

The operating cycle is the time between the acquisition of assets for processing and their realization in cash and cash equivalents. The company has identified twelve months as its operating cycle.

V. Foreign currency translation

Items included in the financial statements of the entity are measured using the currency of the primary economic environment in which the entity operates (''the functional currency''). The financial statements are presented in Indian rupee (INR), which is company''s functional and presentation currency.

Transactions and balances

Transactions in foreign currencies are initially recorded by the company''s entities at their respective functional currency spot rates at the date the transaction first qualifies for recognition.

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

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

W. Fair value measurement

The company measures financial instruments, such as, derivatives at fair value at each balance sheet 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:

i. In the principal market for the asset or liability, or

---------------------a.

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.

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

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized 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:

i. Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or Liabilities.

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

iii. 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 recognized in the financial statements on a recurring basis, the company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization (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 Valuation Committee 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 distribution in discontinued operations. The Valuation Committee comprises of the head of the investment properties segment, heads of the company''s internal mergers and acquisitions team, the head of the risk management department, financial controllers and chief finance officer.

External valuers are involved for valuation of significant assets, such as unquoted financial assets. Involvement of external valuers is decided upon annually by the Valuation Committee after discussion with and approval by the management. Selection criteria include market knowledge, reputation, independence and whether professional standards are maintained. Valuers are normally rotated every three years. The management decides, after discussions with the company''s external valuers, which valuation techniques and inputs to use for each case.

At each reporting date, the management analyses the movements in the values of assets and liabilities which are required to be remeasured 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.

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.

On an interim basis, the Valuation Committee and the Company''s external valuers present the valuation results to the Audit Committee and the company''s independent auditors. This includes a discussion of the major assumptions used in the valuations.

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 summarizes accounting policy for fair value. Other fair value related disclosures are given in the relevant notes.

i. Disclosures for valuation methods, significant estimates and assumptions.

ii. Quantitative disclosures of fair value measurement hierarchy.

iii. Investment in unquoted equity shares (discontinued operations).

iv. Financial instruments (including those carried at amortized cost).

X. Exceptional items

Certain occasions, the size, type or incidence of an item of income or expense, pertaining to the ordinary activities of the company is such that its disclosure improves the understanding of the performance of the company, such income or expense is classified as an exceptional item and accordingly, disclosed in the notes accompanying to the financial statements.

Y. Rounding off

All amounts disclosed in the financial statements and notes have been rounded off to the nearest Lakhs as per the requirements of Schedule III, unless otherwise stated.

• Recent accounting pronouncements

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

• Other Statutory Informations:

1- Details of Benami Property: The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

2. Details of Charges: The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

3. Details of crypto currency or virtual currency: The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

f/^n iWMl • * \\

4. Utilization of borrowed funds and share premium:

The Company has not received any fund from any person(s) or entity(is), 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.

5. Undisclosed income: The Company does not have any 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.

6. Willful Defaulter: The Company is not declared as willful defaulter by any bank or financial institution (as defined under the Companies Act, 2013) or consortium thereof or other lender in accordance with the guidelines on willful defaulters issued by the Reserve Bank of India.

7. Compliance with number of layers of companies: As the company has no holding or subsidiary company, requirement with respect to number of layers prescribed under clause 87 of sub section 2 of the Companies Act, 2013 read with companies (restriction on number of layers) rules, 2017 is not applicable.

8. Valuation of PP&E. intangible asset and investment property: The Company has not revalued any of its Property, Plant and Equipment (including Right-of-Use Assets) during the year.

9. The Company has no transaction with any company struck-off under section 248 of the Companies Act, 2013 or Section 560 of the Companies Act, 1956

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

For Nahta Jain & Associates Aarnav Fashions Limited

Chartered Accountants I ________

Firm Regn. No. 106801W _

, Champalal G. Agarwal Sumit C. Agarwal

° (Director) (Director)

(CA. Gfeurav Nahta) (DIN- 01716421) (DIN- 00356863)

Partner _n

M. No. 116735 "''\^A\ H C.KoimcUn

Mi iee Kamdar Radhakishan Sharma

Compliance Officer & Chief Finance Officer

Company Secretary

Date:- 30.05.2024 Date:- 30.05.2024

Place :- Ahmedabad Place:- Ahmedabad

---

Mar 31, 2023

O. Provisions, Contingent liabilities, Contingent assets and Commitments General

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

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

Contingent liability is disclosed in the case of:

1. A present obligation arising from the past events, when it is not probable that an outflow of resources will be required to settle the obligation;

2. A present obligation arising from the past events, when no reliable estimate is possible;

3. A possible obligation arising from the past events, unless the probability of outflow of resources is remote.

Commitments include the amount of purchase order (net of advances) issued to parties for completion of assets.

The company provides for the expenses to reclaim the quarries used for mining. The total estimate of reclamation expenses is apportioned over the estimate of mineral reserves and a provision is made based on the minerals extracted during the year. Mines reclamation expenses are incurred on an ongoing basis and until the closure of the mine. The actual expenses may vary based on the nature of reclamation and the estimate of reclamation expenditure.

Provisions, contingent liabilities, contingent assets and commitments are reviewed at each balance sheet date.

P. Dividend

Provision is made for the amount of any dividend declared, being appropriately authorized and no longer at the discretion of the entity, on or before the end of the reporting period but not distributed at the end of the reporting period.

The Company recognizes a liability to make cash distributions to equity holders of the Company when the distribution is authorized, and the distribution is no longer at the discretion of the Company. Final dividends on shares are recorded as a liability on the date of approval by the shareholders and interim dividends are recorded as a liability on the date of declaration by the Company''s Board of Directors. The interim dividends declared during the year are approved by the Board of Directors.

However no dividend has been paid by Company during the year.

Q. Earnings per share

Basic earnings per share are calculated by dividing the net profit for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Earnings considered in ascertaining the company''s earnings per share is the net profit for the period after deducting preference dividends and any attributable tax thereto for the period. The weighted average number of equity shares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares, other than the conversion of potential equity shares that have changed the number of equity shares outstanding, without a corresponding change in resources.

For the purpose of calculating diluted earnings per share, the profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares. Dilutive potential equity shares are deemed converted as of the beginning of the period, unless they have been issued at a later date. The diluted potential equity shares have been arrived at, assuming that the proceeds receivable were based on shares having been issued at the average market value of the outstanding shares. In computing dilutive earnings per share, only potential equity shares that are dilutive and that would, if issued, either reduce future earnings per share or increase loss per share, are included.

R. Use of estimates and judgements

The presentation of the financial statements is in conformity with the Ind AS which requires the management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses and disclosure of contingent liabilities. Such estimates and assumptions are based on management''s evaluation of relevant facts and circumstances as on the date of financial statements. The actual outcome may differ from these estimates.

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

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment within the next financial year are included in the following notes:

• Current tax

• Fair valuation of unlisted securities

S. Statement of cash flows

Cash flow are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals of accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and finance activities of the company are segregated.

T. Current and 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:

i. Expected to be realized or intended to be sold or consumed in normal operating cycle;

ii. Held primarily for the purpose of trading;

iii. Expected to be realized within twelve months after the reporting period, or

iv. 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:

i. It is expected to be settled in normal operating cycle;

ii. It is held primarily for the purpose of trading;

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

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

All other liabilities are classified as non-current.

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

Operating Cycle

The operating cycle is the time between the acquisition of assets for processing and their realization in cash and cash equivalents. The company has identified twelve months as its operating cycle.

U. Foreign currency translation

Items included in the financial statements of the entity are measured using the currency of the primary economic environment in which the entity operates (''the functional currency''). The financial statements are presented in Indian rupee (INR), which is company''s functional and presentation currency.

Transactions and balances

Transactions in foreign currencies are initially recorded by the company''s entities at their respective functional currency spot rates at the date the transaction first qualifies for recognition.

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

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. The gain or loss arising on translation of non-monetary items measured at fair value is treated in line with the recognition of the

gain or loss on the change in fair value of the item (i.e., translation differences on items whose fair value gain or loss is recognized in OCI or profit or loss are also recognized in OCI or profit or loss, respectively).

V. Fair value measurement

The company measures financial instruments, such as, derivatives at fair value at each balance sheet 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:

i. In the principal market for the asset or liability, or

ii. 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.

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

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized 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:

i. Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or Liabilities.

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

iii. 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 recognized in the financial statements on a recurring basis, the company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization (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 Valuation Committee 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 nonrecurring measurement, such as assets held for distribution in discontinued operations. The Valuation Committee comprises of the head of the investment properties segment, heads of the company''s internal mergers and acquisitions team, the head of the risk management department, financial controllers and chief finance officer.

External valuers are involved for valuation of significant assets, such as unquoted financial assets. Involvement of external valuers is decided upon annually by the Valuation Committee after discussion with and approval by the management. Selection criteria include market knowledge, reputation, independence and whether professional standards are maintained. Valuers are normally rotated every three years. The management decides, after discussions with the company''s external valuers, which valuation techniques and inputs to use for each case.

At each reporting date, the management analyses the movements in the values of assets and liabilities which are required to be remeasured 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.

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.

On an interim basis, the Valuation Committee and the Company''s external valuers present the valuation results to the Audit Committee and the company''s independent auditors. This includes a discussion of the major assumptions used in the valuations.

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 summarizes accounting policy for fair value. Other fair value related disclosures are given in the relevant notes.

i. Disclosures for valuation methods, significant estimates and assumptions.

ii. Quantitative disclosures of fair value measurement hierarchy.

iii. Investment in unquoted equity shares (discontinued operations).

iv. Financial instruments (including those carried at amortized cost).

W. Earnings Per Share

Basic earnings per share is computed and disclosed by dividing the net profit after tax by using the weighted average number of common shares outstanding during the year. Dilutive earning per share is computed and disclosed using the weighted average number of common and dilutive common equivalent shares outstanding during the year, except when the results would be anti-dilutive.

X. Exceptional items

Certain occasions, the size, type or incidence of an item of income or expense, pertaining to the ordinary activities of the company is such that its disclosure improves the understanding of the performance of the company, such income or expense is classified as an exceptional item and accordingly, disclosed in the notes accompanying to the financial statements.

Y. Rounding off

All amounts disclosed in the financial statements and notes have been rounded off to the nearest Lakhs as per the requirements of Schedule III, unless otherwise stated.

• Recent accounting pronouncements

Recent pronouncements Ministry of Corporate Affairs ("MCA") notifies new standard or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On March 31, 2023, MCA amended the Companies (Indian Accounting Standards) Rules, 2015 by issuing the Companies (Indian Accounting Standards) Amendment Rules, 2023, applicable from April 1, 2023, as below:

Ind AS 1 - Presentation of Financial Statements The amendments require companies to disclose their material accounting policies rather than their significant accounting policies. Accounting policy information, together with other information, is material when it can reasonably be expected to influence decisions of primary users of general purpose financial statements. The Group does not expect this amendment to have any significant impact in its financial statements.

Ind AS 12 - Income Taxes The amendments clarify how companies account for deferred tax on transactions such as leases and decommissioning obligations. The amendments narrowed the scope of the recognition exemption in

paragraphs 15 and 24 of Ind AS 12 (recognition exemption) so that it no longer applies to transactions that, on initial recognition, give rise to equal taxable and deductible temporary differences. The Group is evaluating the impact, if any, in its financial statements.

Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors The amendments will help entities to distinguish between accounting policies and accounting estimates. The definition of a change in accounting estimates has been replaced with a definition of accounting estimates. Under the new definition, accounting estimates are "monetary amounts in financial statements that are subject to measurement uncertainty". Entities develop accounting estimates if accounting policies require items in financial statements to be measured in a way that involves measurement uncertainty.

The Group does not expect this amendment to have any significant impact in its financial statements.

• Other Statutory Information:

1. Details of Benami Property: The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

2. Details of Charges: The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

3. Details of crypto currency or virtual currency: The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

4. Utilization of borrowed funds and share premium:

The Company has not received any fund from any person(s) or entity(is), 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.

5. Undisclosed income: The Company does not have any 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.

6. Willful Defaulter: The Company is not declared as willful defaulter by any bank or financial institution (as defined under the Companies Act, 2013) or consortium thereof or other lender in accordance with the guidelines on willful defaulters issued by the Reserve Bank of India.

7. Compliance with number of layers of companies: As the company has no holding or subsidiary company, requirement with respect to number of layers prescribed under clause 87 of sub section 2 of the Companies Act, 2013 read with companies (restriction on number of layers) rules, 2017 is not applicable.

8. Valuation of PP&E, intangible asset and investment property: The Company has not revalued any of its Property, Plant and Equipment (including Right-of-Use Assets) during the year.

9. Compliance with approved scheme(s) of arrangements: The Company has entered into any scheme of arrangement the details of which is reproduced as under:

a. It is stated that, in terms of Clause 13 of the Scheme of Arrangement providing amalgamation of Gopi Synthetics Private Limited ("GSPL"), Aarnav Synthetics Private Limited ("ASPL"), Aarnav Textile Mills Private Limited ("ATMPL"), Symbolic Finance and Investment Private Limited ("SFIPL") and Ankush Motor and General Finance Company Private Limited ("AMFGCPL") with Aarnav Fashions Limited ("AFL") and their respective shareholders and creditors ("Scheme of Arrangement") has been approved in terms of the provisions of sections 230 to 232 read with sections 66 and other applicable provisions of the Companies Act, 2013, by NCLT, Ahmedabad bench on 10.08.2022. The appointed date for the amalgamation is October 1, 2020.

b. The order of Hon''ble NCLT, Ahmedabad bench (No.C.P. (CAA)/6(AHM)2022 in C.A.(CAA)/67(AHM)2021 has been approved on 10.08.2022 and the certified copy of the order has been received on 05.09.2022. The order was filed with the Registrar of Companies, Gujarat. Pursuant to the Scheme, the Company has once again prepared the merged results for F.Y. 2021-2022 for giving the effect of merger from date 01.10.2020. This financial statement (after giving the merger effects) is approved for issue by the Audit Committee as at its meeting and by the Board of Directors on 14th Nov, 2022.

c. It is further stated that the said order has also been approved and taken on records by Ministry of Corporate Affairs on 31st October, 2022, and by virtue of this order, all the assets and liabilities of Transferor Companies have been amalgamated with Transferee Company.

d. Pursuant to the Scheme, the Company has allotted 2,72,33,628 equity shares of face value of Rs.10.00 each, fully paid-up as per the share exchange ratio specified in the Scheme to the specified shareholders of the Transferor Companies as on November 5, 2022 ("Record Date").

e. Further, this financial statement has been prepared by giving the effect of such amalgamation. Thus, the Assets and liabilities taken over from Transferor Companies have been depicted under this financial statement as the assets and liabilities of our company. Also the equity shares have also been deemed to have been issued to the shareholders of transferor companies against the purchase consideration and the effect such issuance of New Equity shares has also been given in the paid up share capital and share premium under the head "Equity" in this financial statement.

10. The Company has no Transaction with any company struck off under section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956.

5.1 Foreign currency sensitivity analysis

The Company is not materially exposed to USD and EURO currency.

6. Interest rate risk management

The Company is exposed to interest rate risk because funds are borrowed at both fixed and floating interest rates. Interest rate risk is measured by using the cash flow sensitivity for changes in variable interest rate. The Company has exposure to interest rate risk, arising principally on changes in interest rates. The Company uses a mix of interest rate sensitive financial instruments to manage the liquidity and fund requirements for its day-to-day operations like long term and short-term loans. The risk is managed by the Company by maintaining an appropriate mix between fixed and floating rate borrowings. Hedging activities are evaluated regularly to align with interest rate views and defined risk appetite, ensuring the most cost-effective hedging strategies are applied.

The table in 6.1 provides a break-up of the Company''s fixed and floating rate borrowings:

6.1 Interest rate sensitivity analysis

The sensitivity analyses below have been determined based on the exposure to interest rates for both derivatives and nonderivative instruments at the end of the reporting period. For floating rate liabilities, the analysis is prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding for the whole year. A 50-basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management''s assessment of the reasonably possible change in interest rates.

7. Credit risk management

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration risks. 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 uses publicly available financial information and its own trading records to rate its major customers. The Company''s exposure and the credit ratings of its counterparties are continuously monitored and the aggregate value of transactions concluded is spread amongst approved counterparties.

Trade receivables consist of a large number of customers, spread across diverse geographical areas. Ongoing credit evaluation is performed on the financial condition of accounts receivable.

The Company does not have significant credit risk exposure to any single counterparty. Concentration of credit risk related to the above mentioned company did not exceed 10% of gross monetary assets at any time during the year. Concentration of credit risk to any other counterparty did not exceed 10% of gross monetary assets at any time during the year.

7.1 Collateral held as security and other credit enhancements

The Company does not hold any collateral or other credit enhancements to cover its credit risk associated with its financial assets.

Liquidity risk refers to the risk of financial distress or extraordinary high financing costs arising due to shortage of liquid funds in a situation where business conditions unexpectedly deteriorate and requiring financing. Ultimate responsibility for liquidity risk management rests with the board of directors, which 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.

1 Disclosure as per Ind AS 113 - Fair Value Measurements

The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in an orderly transaction in the principal (or most advantageous) market at measurement date under the current market condition regardless of whether that price is directly observable or estimated using other valuation techniques.

The Company has established the following fair value hierarchy that categorizes the values into 3 levels. The inputs to valuation techniques used to measure fair value of financial instruments are:

Level 1- Level 1 hierarchy includes financial instruments measured using quoted prices. This Includes listed equity instruments that have quoted price. Listed and actively traded equity instruments are stated at the last quoted closing price on the National Stock Exchange of India Limited (NSE).

Level 2- The fair value of financial instruments that are not traded in 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 all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3- If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. The fair value of the financial assets and liabilities included in Level 3 is determined in accordance with generally accepted pricing models based on Cost Approach using Net Asset Method.

Valuation Techniques used to determine fair values:

A) Specific valuation technique is used to determine the fair value of the financial instruments which include:

i) For financial instruments other than (ii):- In accordance with generally accepted pricing models based on Net Asset Value analysis using prices from observable market transactions and dealer quotes of similar instruments.

ii) For financial liabilities (domestic currency loans) :- appropriate market borrowing rate of the entity as of each balance sheet date used.

III. The estimated amount of capital contract remaining to be executed on capital account and not provided for Rs. Nil (P.Y. Nil) against which advance have been paid Rs. 0/- (P.Y. Nil )

30. The Company has not received full information from vendors regarding their status under Micro, Small and Medium Enterprises Development Act, 2006 (MSME Act); disclosure relating to amount unpaid at year end together with interest paid/payable have been given based on the information so far available with the Company/identified by the Company management:

31. Segment Information

The Managing Director/ Chief Executive Officer of the Company allocate resources and assess the performance of the Company, thus are the Chief Operating Decision Maker (CODM). Textiles Business is identified as single operating segment for the purpose of making decision on allocation of resources and assessing its performance.

(a) Description of segment and principal activities

The Managing Director/ Chief Executive Officer of the Company allocate resources and assess the performance of the Company, thus are the Chief Operating Decision Maker (CODM). Textile Business is identified as single operating segment for the purpose of making decision on allocation of resources and assessing its performance.

It is stated that, in terms of Clause 13 of the Scheme of Arrangement providing amalgamation of Gopi Synthetics Private Limited ("GSPL"), Aarnav Synthetics Private Limited ("ASPL"), Aarnav Textile Mills Private Limited ("ATMPL"), Symbolic Finance and Investment Private Limited ("SFIPL") and Ankush Motor and General Finance Company Private Limited ("AMFGCPL") with Aarnav Fashions Limited ("AFL") and their respective shareholders and creditors ("Scheme of Arrangement") has been approved in terms of the provisions of sections 230 to 232 read with sections 66 and other applicable provisions of the Companies Act, 2013, by NCLT, Ahmedabad bench on 10.08.2022. The appointed date for the amalgamation is October 1, 2020.

The order of Hon''ble NCLT, Ahmedabad bench (No.C.P. (CAA)/6(AHM)2022 in C.A.(CAA)/67(AHM)2021 has been approved on 10.08.2022 and the certified copy of the order has been received on 05.09.2022. The order was filed with the Registrar of Companies, Gujarat. Pursuant to the Scheme, the Company has once again prepared the merged results for F.Y. 2021-2022 for giving the effect of merger from date 01.10.2020. This financial statement (after giving the merger effects) is approved for issue by the Audit Committee as at its meeting and by the Board of Directors on 14th Nov, 2022.

It is further stated that the said order has also been approved and taken on records by Ministry of Corporate Affairs on 31st October, 2022, and by virtue of this order, all the assets and liabilities of Transferor Companies have been amalgamated with Transferee Company.

Pursuant to the Scheme, the Company is to allot 2,72,33,628 equity shares of face value of Rs.10.00 each, fully paid-up as per the share exchange ratio specified in the Scheme to the specified shareholders of the Transferor Companies as on November 5, 2022 ("Record Date").

Further, this financial statement has been prepared by giving the effect of such amalgamation. Thus, the Assets and liabilities taken over from Transferor Companies have been depicted under this financial statement as the assets and liabilities of Transferee company. Also, the equity shares have also been deemed to have been issued to the shareholders of transferor companies against the purchase consideration and the effect such issuance of New Equity shares has also been given in the paid-up share capital and share premium under the head "Equity" in this financial statement.

The financials for the current financial year 2022-2023 and that of preceding financial year 2021-2022 have been prepared so as to include financials of the Transferor Companies in accordance with Indian Accounting Standard (IND-AS) 103, "Business Combinations".

Filing of Applications for the change of name with various authorities like Land Revenue Authority, Electricity Company, Gujarat Pollution Control Board (GPCB), Factory & Industrial Licencing Authority, Ahmedabad Municipal Corporation, DGFT, etc are either get processed or under process and shall get changed in due course.

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

FOR, NAHTA JAIN & ASSOCIATES AARNAV FASHIONS LIMITED

CHARTERED ACCOUNTANTS FIRM REGN. NO. 106801W

(CA. GAURAV NAHTA) CHAMPALAL AGARWAL SUMIT AGARWAL

PARTNER DIN: 01716421 DIN: 00356863

MEM. NO. 116735 CHAIRMAN AND DIRECTOR MANAGING DIRECTOR

NIDHI AGGRAWAL

PLACE: AHMEDABAD DIN: 08364168 RADHAKISHAN SHARMA

DATE: 30-05-2023 COMPANY SECRETARY & COMPLIANCE OFFICER CHIEF FINANCIAL OFFICER

124 | ANNUAL REPORT 2022-2023

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Mar 31, 2014

1. Rights, preference and restriction attached to Equity Shares

(i) The company has only one class of equity shares having a face value of Rs 10/- per share. Each holder of equity shares is entitled to one vote per share. The company declares and pay dividends in Indian rupees. The proposed dividend recommended by the Board of Directors is subject to the approval of the Sharesholders.

(ii) ln the event of liquidation of the company, the holder of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

There were no shares reserved at the year-end for issue under options and contracts / commitments for the sale of shares / disinvestment.

2. In the opinion of the Director, the Creditors are approximately of the value stated, if realised in the ordinary course of the business and there is no contingent liabilities. Provisions for all known liabilities are made & they are adequate. The Bank Balance and Loan & Advances are subject to confirmation and necessary adjustment, if any, will be made on its realisation. The amount of Income Tax is subject to reconciliation/adjustment.

3. Related Party Disclosures:

Related party disclosures as required under the Accounting Standard (AS) 18 on "Related Party Disclosures" notified in Companies (Accounting Standards) Rules, 2006 are given below:

Name of the Related Parties and Description of Nature of Relationship Relationship

Particulars of Associates

* Kayel Syntex Limited Associate Company

Director as at 31st March 2014 Designation

Name

* Rakesh L. Jain Director

* Rahul K. Jain Director

* Rajkumar L Jain Director

Particulars of Relatives of Directors

* Kantilal Loonchand Relative of director

4. Corresponding figures of the Previous years has been rearranged or regrouped wherever necessary.

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Mar 31, 2013

1. Rights, preference and restriction attached to Equity Shares

The company has only one class of equity shares having a face value of Rs 10/- per shares. Each holder of equity shares is entitled to one vote per share. The company declares and pay dividends in Indian rupees. The proposed dividend recommended by the Board of Directors is subject to the approval of the Sharesholders.

2. ln the event of liquidation of the company, the holder of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proporation to the number of equity shares held by the shareholders.

3. There were no shares reserved at the year-end for issue under options and contracts / commitments for the sale of shares / disinvestment.

4. Aggregate number of bonus Shares issued, shares issued for consideration oilier than Cash and Shares bought back during the Period of five Years immediately preceding the reporting date.

5. As per Information available on Company's records, no amount was due to Micro Small and Medium Enterprises as defined under the MSME Act,7006 and Hence disclosure Insure is not given.

6. In the opinion of the Director, the Creditors are approximately of the value stated, if realised in the ordinary course of the business and there is no contingent liabilities. Provisions for all known liabilities are made & they are adequate. The Bank Balance and loan & Advances are subject to confirmation and necessary adjustment, if any, will be made on its realisation. The amount of Income Tax is subject to reconciliation/adjustment.

7. Related party disclosures as required under the Accounting Standard (AS) -18 on "Related Party Disclosures" notified in Companies (Accounting Standards) Rules, 2006 are given below:

a Name of the Related Parties and Description of Nature of Relationship Relationship

Particulars of Associates

* Kayel Syntex Limited Associate Company

Director as at 31st March 2013 Designation

Name

* Rakesh L. Jain Director

* Rahul K. Jain Director

* Rajkumar L. Jain Director

Particulars of Relatives of Directors

* Kantiial Loonchand Relative of director

8. Corresponding figures of the Previous years has been rearranged or regrouped wherever necessary.