Notes to Accounts of Active Clothing Co Ltd.

Mar 31, 2025

2.8 Provisions and contingent liabilities

Provision are recognized when the Company has a present obligation
(legal or constructive) as a result of a past event, it is probable that the
Company will be required to settle the obligation, and a reliable estimate
can be made of the amount of the obligation.

The amount recognized as a provision is the best estimate of the
consideration required to settle the present obligation at the end of the
reporting period, taking into account the risks and uncertainties

surrounding the obligation. When a provision is measured using the cash
flows estimated to settle the present obligation, its carrying amount is the
present value of those cash follows ( when the effect of the time value of
money is material).

When some or all of economic benefits required to settle a provision are
expected to be recovered from a third party, a receivable is recognized
as on asset if it is virtually certain the reimbursements will be received and
amount of the receivable can be measured reliably.

A disclosure for a contingent liability is made when there is a possible
obligation or a present obligation that may, but probably will not, require
an outflow of resources. When there is a possible obligation or a present
obligation that the like hood of outflow of resources is remote, no provision
or disclosure is made. The Company complies with the amended Ind AS
37.

2.9. Revenue Recognition

The Company recognized revenue in accordance with Accounting
Standard Ind AS 115, as per which revenue should be recognized when
the performance obligation is satisfied.

Revenue is measured at the fair value of the consideration received or
receivable. Amount disclosed as revenue are net of returns, rebates,
goods & service tax and value added taxes.

The Company recognizes revenue when the amount of revenue can be
reliably measured, it is probable that future economic benefits will flow to
the entity and specific criteria have been met for each of the Company’s
activities, as described below. The Company bases its estimate of return
on historical results, taking into consideration the type of customer, the
type of transaction and the specifics of each arrangement.

Revenue recognized from major business activities.

2.10 Sale of goods:

Revenue from sale of goods is recognized as and when the Company
satisfies performance obligations by transferring control of the promised
goods to its customers.

2.11 Government Grants

Government grants are not recognized until there is reasonable assurance
that the company will comply with the conditions attaching to them and
that the grants will be received.

As per amendment in lnd-AS20 "Government Grants’ w.e.f. April 1,2018 the
Company had opted to present the grant received/ receivable after April
01,2018 related to assets as deduction from the carrying value of such
specific assets.

Foreign Currencies Transactions

Since functional currency of the company is Indian Rupees (INR) Which is
also the presentation currency, all other currencies are accounted for as
foreign Currency.

Transactions denominated in foreign currencies into by the Company are
initially recorded at the Exchange rated prevailing on the date of the
transaction..

Any income or expenditure, either or settlement or on translation, on
account of difference in exchange rate as on the reporting date and the
exchange rate as on the date of recognition of the them, is recognized in
the statement of profit and loss.

Employee Benefits

A. Short Term Employee Benefits:

All employee benefits payable wholly within twelve months or
rendering the service are classified as short term employee benefits
and they are recognized in the period in which the employee renders
the related service.

B. Post-employment Benefits

Provident Fund Scheme and Employees State Insurance Scheme:

Eligible employees receive benefits of a state run provident fund and
insurance scheme. These are defined contribution plans. Both the eligible
employee and the Company make monthly contributions to provident
fund plan and the insurance scheme equal to a specified percentage of
the covered employees’ salary. There are no other obligations other that
the contribution payable to the relevant fund scheme.

2.12 Expenditure

Expenses are accounted on accrual basis.

2.13 Taxation

Income tax expense represents the sum of the tax currently payable and
deferred tax

2.14 Current Tax

The tax currently payable is based on taxable profit for the year. Taxable
profit differs from ‘profit before tax’ as reported in the statement of profit and
loss because of items of income or expense that are taxable or deductible in
other years and items that are never taxable or deductible. The Company’s
current tax is calculated using tax rates that have been enacted or
substantively enacted by the end of the reporting period.

Current Income Tax assets/liabilities for current year is recognized at the
amount expected to be paid to and/or recoverable from the tax authorities.

2.15 Deferred Tax

Deferred tax is recognized on temporary differences between the carrying
amounts of assets and liabilities in the financial statements and the
corresponding tax basis used in the computation of taxable profit. Deferred
tax liabilities are generally recognized for all taxable temporary differences.
Deferred tax assets are generally recognized for all deductible temporary
differences to the extent that it is probable that taxable profits will be
available against which those deductible temporary differences can be

utilized, Such deferred tax assets and liabilities are not recognized if the
temporary difference arises from the initial recognition ( other that in a
business combination) of assets and liabilities in a transaction that affects
neither the taxable profit nor the accounting profit.

That carrying amount of deferred tax assets is reviewed at the end of each
reporting period and reduced to the extent that it is no longer probable that
sufficient taxable profits will be available to allow all or part of the asset to be
recovered.

Deferred tax liabilities and assets are measured at the tax rates that are
expected to apply in the period in which the liability is settled or the asset
realized, based on tax rates ( and tax laws) that have been enacted or
substantively enacted by the end of the reporting period.

The measurement of deferred tax liabilities and assets reflects the tax
consequences that would follow from the manner in which the Company
expects, at the end of the reporting period, to recover or settle the carrying
amount of its assets and liabilities.

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which
gives future economic benefits in the form of adjustment to future income tax
liability, is considered as an asset if there is convincing evidence that the
Company will pay normal Income Tax. Accordingly, MAT Credit is recognized
as asset in the Balance Sheet when it is probable that future economic
benefit associated with it will flow to the Company.

2.16 Appendix C to Ind AS 12 Uncertainly over Income Tax Treatment

The appendix addresses the accounting for income taxes when tax
treatments involve uncertainly that affects the application of Ind AS 12
Income Taxes. It does not apply to taxes or levies outside the scope of Ind AS
12, nor does it specifically include requirements relating to interest and
penalties associated with uncertain tax treatments. The Appendix
specifically, addressed the following:

• Whether an entity considers uncertain tax treatments separately

• The assumptions an entity makes about the examination of tax
treatments by taxation authorities.

• How an entity determines taxable profit (tax loss), tax bases,
unused tax losses, unused tax credits and tax rates

• How an entity considers changes in facts and circumstances

The Company determines whether to consider each uncertain tax treatment
separately or together with one or more other uncertain tax treatments and
uses the approach that better predicts the resolution of the uncertainty.

The Company applies significant judgments in indentifying uncertainties over
income tax treatments.

2.17 Earnings per Share

Basic earnings per equity share are computed by dividing the net profit
attributable to the equity holders of the Company by the weighted average
number of equity share outstanding during the period. Diluted earnings per
equity share is computed by dividing the net profit attributable to the equity
holders of the Company by the weighted average number of equity shares
considered for deriving basic earnings per equity share and also the
weighted average number of equity shares that could have been issued
upon conversion of all dilutive potential equity shares. The dilutive potential
equity shares are adjusted for the proceeds receivable had the equity shares
have been actually issued at fair value (i.e. the average market value of the
outstanding equity shares). Divine potential equity shares are deemed
converted as of the beginning of the period, unless issued at a later date.
Dilutive potential equity shares are determined independently for each
period presented.

2.18 Significant accounting judgments estimate and assumptions:

In the application of the Company’s accounting policies, which are
described as stated above , the Board of Directors of the Company are

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

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

2.19.1 Key sources of uncertainty

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

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

28 SEGMENT REPORTING

Segment information as required by Accounting Standard 17 on “Segment
Reporting” issued by Companies (Accounting Standard) Rules, 2006 is not
applicable the company.

29. EARNING PER SHARE

The calculation of Earning Per Share (EPS) as disclosed in the statement of profit
and loss has been made in accordance with Accounting Standard (Ind AS)-33 on
“Earning Per Share" issued by Companies (Accounting Standard) Rules, 2006.

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Mar 31, 2024

2.8 Provisions and contingent liabilities

Provision are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash follows (when the effect of the time value of money is material).

When some or all of economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognized as on asset if it is virtually certain the reimbursements will be received and amount of the receivable can be measured reliably.

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation or a present obligation that the like hood of outflow of resources is remole, no provision or disclosure is made. The Company complies with the amended Ind AS 37.

2.9. Revenue Recognition

The Company recognized revenue in accordance with Accounting Standard Ind AS 115, as per which revenue should be recognized when the performance obligation is satisfied.

Revenue is measured at the fair value ot the consideration received or receivable. Amount disclosed as revenue are net of returns, rebates, goods & service tax and value added taxes.

The Company recognizes revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the Company’s activities, as described below. The Company bases its estimate of return on historical results, taking into consideration the type of customer, the type of transaction and the specifics of each arrangemenf.

Revenue recognized from major business activities.

2.10 Sale of goods:

Revenue from sale of goods is recognized as and when the Company satisfies performance obligations by transferring control of the promised goods to its customers.

2.11 Government Grants

Government grants are not recognized until there is reasonable assurance that the company will comply with the conditions attaching to them and that the grants will be received.

As per amendment in ind-AS20 “Government Grants'' w.e.f. April 1,2018 the Company had opted to present the grant received/ receivable after April 01,2018 related to assets as deduction from the carrying value of such specific assets.

Foreign Currencies Transactions

Since functional currency of the company is Indian Rupees (INR) Which is also the presentation currency, all other currencies are accounted for as foreign Currency.

Transactions denominated in foreign currencies into by the Company are initially recorded at the Exchange rated prevailing on the date of the transaction..

Any income or expenditure, either or settlement or on translation, on account of difference in exchange rate as on the reporting date and the exchange rate as on the date of recognition of the them, is recognized in the statement of profit and loss.

Employee Benefits

A. Shorf Term Employee Benefits:

All employee benefits payable wholly within twelve months or rendering the service are classified as short term employee benefits and they are recognized in the period in which the employee renders the related service.

B. Post-employment Benefits

Provident Fund Scheme and Employees State Insurance Scheme:

Eligible employees receive benefits of a slate run provident fund and insurance scheme. These are defined contribution plans. Both the eligible employee and the Company make monthly contributions to provident fund plan and the insurance scheme equal to a specified percentage of the covered employees'' salary. There are no other obligations other that the contribution payable to the relevant fund scheme.

2.12 Expenditure

Expenses are accounted on accrual basis.

2.13 Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax

2.14 Current Tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from ‘profit before tax’ as reported in the statement of profit and loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Company’s current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

Current Income Tax assets/liabilities for current year is recognized at the amount expected to be paid to and/or recoverable from the tax authorities.

2.15 Deferred Tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax basis used in the computation ot taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable lhat taxable profits will be available against which those deductible temporary differences can be utilized, Such deferred tax assets and liabilities are not recognized if the temporary difference arises from the initial recognition ( other that in a business combination] of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

That carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates ( and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal Income Tax. Accordingly, MAT Credit is recognized as asset in the Balance Sheet when it is probable that future economic benefit associated with it will flow to the Company.

2.16 Appendix C to Ind AS 12 Uncertainly over Income Tax Treatment

The appendix addresses the accounting for income taxes when tax treatments involve uncertainly that affects the application of Ind AS 12 Income Taxes. It does not apply to taxes or levies outside the scope of Ind AS 12, nor does it specifically include requirements relating to interest and penalties associated with uncertain tax treatments. The Appendix specifically, addressed the following:

• Whether an entity considers uncertain tax treatments separately

• The assumptions an entity makes about the examination of tax treatments by taxation authorities.

• How an entity determines taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates

• How an entity considers changes in tacts and circumstances

The Company determines whether to consider each uncertain tax treatment separately or together with one or more other uncertain tax treatments and

uses the approach that better predicts the resolution of the uncertainty.

The Company applies significant judgments in indentitying uncertainties over income tax treatments.

2.17 Earnings per Share

Basic earnings per equity share are computed by dividing the net profit attributable to the equity holders of the Company by the weighted average number of equity share outstanding during the period. Diluted earnings per equity share is computed by dividing the net profit attributable to the equity holders of the Company by the weighted average number of equity shares considered for deriving basic earnings per equity share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. The dilutive potential equity shares are adjusted for the proceeds receivable had the equity shares have been actually issued at fair value (i.e. the average market value of the outstanding equity shares). Divine potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented.

2.18 Significant accounting judgments estimate and assumptions:

In the application of the Company’s accounting policies, which are described as stated above , the Board of Directors of the Company are required to make judgments, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered fo be relevant. Actual results may differ from these estimates.

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

2.19.1 Key sources of uncertainty

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

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

28 SEGMENT REPORTING

Segment information as required by Accounting Standard 17 on "Segment Reporting” issued by Companies (Accounting Standard) Rules, 2006 is not applicable the company.

29. EARNING PER SHARE

The calculation of EarningPer Share (EPS) as disclosed in the statement of profit and loss has been made in accordance with Accounting Standard (Ind AS)-33 on “Earning Per Share” issued by Companies (Accounting Standard) Rules. 2006.

33. Quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in agreement with the books of accounts.

34. Company has used the borrowings from banks and financial institutions for the specific purpose for which it was taken at the balance sheet date.

35. Title deeds of Immovable Property not held in name of the Company - NIL

In terms of our Report Attached For and of behalf of the Board of Directors

Sd/- sd/-

For Sworn K Jain & Co. Rajesh Mehra Renu Mehra

Chartered Accountants Managing Director Director

Firm Registration No. 032917N DIN: 00026176 DIN:02033471

Sd/-

Swarn K Jain

Proprietor sd/- sd/-

Membership No. 092951 Mandeep Singh Avneet Bedi

Chief Financial Officer Company Secretary

PLACE: MOHALi DATED: 30.05.2024

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Mar 31, 2018

Background and nature of Operations

Active Clothing Co Limited (The Company) is a Public Company Incorporated under the provisions of Companies Act,1956 on 27.02.2002 . The Company is engaged in Manufacture of designer woolen, cotton readymade garments.

1. IMPAIREMENT OF ASSETS:

In accordance with the Accounting Standard (Ind AS)-36 on “Impairment of Assets” the Company has assessed as on the balance sheet date, whether there are any indications (Listed in paragraphs 8 to 10 of the Standard) with regard to the impairment of any of the assets. Based on such assessment it has been ascertained that no potential loss is present and therefore, formal estimate of recoverable amount has not been made. Accordingly no impairment loss has been provided in the books of account.

2. EARNING PER SHARE

The calculation of Earning Per Share (EPS) as disclosed in the statement of profit and loss has been made in accordance with Accounting Standard (Ind AS)-33 on “Earning Per Share” issued by Companies (Accounting Standard) Rules, 2006.

A statement on calculation of basic EPS is as under

*Weighted average number of equity shares have been calculated on the number of days the IPO proceeds were ploughed in business.

3. RELATED PARTY DISCLOSURE

(a) Disclosure of Related Parties and relationship between the parties.

1. Subsidiaries NIL

2. Associates Again Lifestyle Pvt. Ltd.

3. Key Management Personnel

4. The Information required by paragraph 5 of general instructions for preparation of the statement of profit and loss as per revised Schedule -III of the Companies Act, 2013.

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