Note 28: Income tax (Contd.)

The Company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax
liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority.

The Company has unused tax capital losses amounting to ?111.85 crores as at March 31, 2025 (March 31, 2024: ?475.32 crores). Out of
the same, tax credits on losses of ?49.87 crores have not been recognised on the basis that recovery is not probable in the foreseeable
future. Unrecognised tax capital losses will expire by March 31, 2032, if unutilized, based on the year of origination.

*Pursuant to the latest amendments in the Finance (No. 2) Act 2024, long term capital gains tax rate was changed from 20% plus
surcharge and cess (with indexation) to 12.5% plus surcharge and cess (without indexation). In accordance with the said amendments,
the deferred tax asset has been reduced by ?56.77 crores as a cumulative one time impact while computing the profit after tax for the
year ended March 31, 2025.

The claims which are not acknowledged as debt are related to factory labour which are pending before Labour Court, Industrial Court
and High Court.

Above disputed demand includes show cause notices received from various indirect tax department for various matters and in
response of the same the Company has preferred appeals on these matters and the same are pending with various adjudicating
authorities.

The management expect that its position will likely be upheld on ultimate resolution and will not have a material adverse effect on
the Company’s financial statements.

The Company has received various demands / show cause notices from income tax authorities aggregating to ?3.96 crores. As the
company has opted for new tax regime under section 115BAA of the Act in FY 2022-23, the company has written off MAT credit u/s.
115JAA of the Act amounting to ?27.06 crore, which can be offset against above demands. If the above referred issues settles against
the Company, there will not be any actual tax outflow or impact on profit and loss of the Company. Hence, no contingent liability is
considered on above matters.

Details related to Financial Gurantees given has been disclosed in note - 35 (d).

Note 32: Foreign Exchange Derivatives and Exposures not hedged

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

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

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

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

Cash Flow Hedges

The Company also enters into forward exchange contracts for hedging highly probable forecast transaction and account for them as
cash flow hedges and states them at fair value. Subsequent changes in fair value are recognized in equity until the hedged transaction
occurs, at which time, the respective gain or losses are reclassified to the statement of profit or loss. These hedges have been effective
for the year ended March 31, 2025 and March 31, 2024.

The Company uses foreign exchange contracts from time to time to optimize currency risk exposure on its foreign currency
transactions.

The cash flow hedges are taken out by the Company during the year for hedging the foreign exchange rate of highly probable forecast
transactions.

The cash flows related to above are expected to occur during the year ended March 31, 2025 and consequently may impact the
statement of profit or loss for that year depending upon the change in the foreign exchange rates movements.

Note 33: Segment Reporting
Identification of Segments:

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

Operating Segments:

(a) Textiles: Fabrics, Garments and Fabric Retail.

(b) Advanced Material: Human Protection fabric & garments, Industrial Products, Advance Composites and Automotive
fabrics.

(c) Others: E-commerce, Agriculture Produce, EPABX and One to Many Radio, Developing of Residential Units and Others.

Segment revenue and results:

Revenue and expenses directly attributable to segments are reported under each reportable segment. The expenses and income which
are not directly attributable to any business segment are shown as unallocable expenditure (net of unallocable income). Unallocated
expenditure consists of common expenditure incurred for all the segments and expenses incurred at corporate level.

Segment assets and Liabilities:

Assets and liabilities that are directly attributable or allocable to segments are disclosed under each reportable segment. Segment
assets include all operating assets used by the operating segment and mainly consist of property, plant and equipment, trade
receivables, Inventories and other operating assets. Segment liabilities primarily includes trade payable and other liabilities excluding
borrowings.

Common assets and liabilities which can not be allocated to any of the business segment are shown as unallocable assets /
liabilities.

Inter Segment transfer:

Inter Segment revenues are recognised at sales price. The same is based on market price and business risks. Profit or loss on inter
segment transfer are eliminated at the company level.

The accounting policies of the reportable segments are the same as the Company’s accounting policies described in Note 3. The
Company’s financing (including finance costs and finance income) and income taxes are reviewed on an overall basis and are not
allocated to operating segments.

Geographical segment:

Geographical segment is considered based on sales within India and rest of the world.

Note

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

(b) The Company’s Superannuation Fund was administered by approved Trust. The Company was required to contribute the
specified amount to the Trust for the eligible employees and with effect from October 1, 2023, the company has discontinued
the Superannuation Fund Scheme.

Note 34: Disclosure pursuant to Employee benefits (Contd.)

(c) The Company’s Employee State Insurance Fund, for all eligible employees, is administered by ESIC Corporation. The Company
is required to contribute specified amount to ESIC Corporation and has no further obligations to the same beyond its
contribution.

B. Defined benefit plans:

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

(a) Gratuity (Funded)

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in
continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination
is the employees last drawn basic salary per month computed proportionately for 15 days (30 days for the employees joined
before March 31, 2000 with the grade of M2 and above at the time of retirement/termination from the date they are in Grade M2
and above) salary multiplied for the number of years of service. It is capped at 20 months basic salary for the employees joined
before March 31, 2000 and are in the Grade M2 and above at the time of retirement/termination. The Gratuity plan is a Funded
plan administered by a recognised Trust in India.

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

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

(b) Compensatory Pension Scheme (Unfunded)

The Company operates a post retirement pension scheme, which is discretionary in nature for certain cadres of employees who
have joined before June 30, 1983 and who have rendered not less than 31 years of service before their retirement. The plan is
unfunded. Employees do not contribute to the plan.

Liabilities with regard to the Compensatory Pension Scheme are determined by actuarial valuation, performed by an independent
actuary, at each Balance Sheet date using the projected unit credit method.

The Company recognizes the net obligation of a defined benefit plan in its Balance Sheet as an asset or liability. Gains and
losses through re-measurements of the net defined benefit liability are recognized in other comprehensive income and are not
reclassified to profit or loss in subsequent periods.

Fair value hierarchy

Level 1: Level 1 hierarchy includes financial instruments traded in active markets measured using quoted prices. This includes listed
equity instruments that have quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued
using the closing price as at the reporting period.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the counter
derivatives) 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. This is
the case for unlisted equity securities, contingent consideration and indemnification asset included in level 3.

For the valuation, income approach is applied and the Weighted Average Cost of Capital and Growth Rate has been considered as a
significant unobservable input and the movement is due to change in fair value

There are no transfer between level 1, 2 and 3 during the year.

The Company’s policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of the reporting
period.

Note 42: Financial instruments risk management objectives and policies

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

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

Note 42: Financial instruments risk management objectives and policies (Contd.)

(a) Market risk

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

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

(a1) Interest rate risk

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

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

As at March 31, 2025, 3.12% of the Company's Borrowings are at fixed rate of interest (March 31, 2024: NIL%).

Interest rate sensitivity

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

(a2) Foreign currency risk

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

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

Note 42: Financial instruments risk management objectives and policies (Contd.)

Foreign currency sensitivity

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

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

(b) Credit risk

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

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

All trade receivables are subject to credit risk exposure. The Company’s exposure to credit risk is influenced mainly by the individual
characteristics of each customer. The demographics of the customer, including the default risk of the industry and country,
in which the customer operates, also has an influence on credit risk assessment. Credit risk is managed through established
policies, controls relating to credit approvals and procedures for continuously monitoring the creditworthiness of customers
to which the Company grants credit terms in the normal course of business. Outstanding customer receivables are regularly
monitored and any shipments to major customers are generally covered by letters of credit. The history of trade receivables
shows a negligible provision for bad and doubtful debts. Therefore, the Company does not expect any material risk on account
of non-performance by any of the Company’s counterparties. The Company does not have significant concentration of credit risk
related to trade receivables. No single third party customer contributes to more than 10% of outstanding accounts receivable
(excluding outstanding from subsidiaries) as of March 31, 2025 and March 31, 2024.

Trade receivables are non-interest bearing and are generally on 7 days to 180 days credit term.

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

Note 42: Financial instruments risk management objectives and policies (Contd.)

(c) Liquidity risk

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

During the year, the Company has been regular in repayment of principal and interest on borrowings on or before due dates. The
Company did not have defaults of principal and interest as on reporting date.

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

*Includes contractual interest payment based on interest rate prevailing at the end of the reporting period over the tenor of the borrowings.

'Other financial liabilities includes interest accrued but not due and interest accrued and due of ?5.99 Crores (March 31, 2024: ?4.82 Crores).

Note 43: Capital management

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

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

Note 45: Additional Regulatory Disclosures As Per Schedule III Of Companies Act, 2013

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

B. The Company has Fund-based and Non-fund-based limits of Working Capital from Banks and Financial institutions. For the said
facility, the revised submissions made by the Company to its lead bankers based on closure of books of accounts at the year end,
the revised quarterly returns or statements comprising stock statements, book debt statements, credit monitoring arrangement
reports, statements on ageing analysis of the debtors/other receivables, and other stipulated financial information filed by the
Company with such banks or financial institutions are in agreement with the unaudited books of account of the Company of the
respective quarters and no material discrepancies have been observed.

C. The Company has not been declared as a willful defaulter by any lender who has powers to declare a company as a willful defaulter
at any time during the financial year or after the end of reporting period but before the date when the financial statements are
approved.

D. The Company has not entered into any transactions with companies struck off under section 248 of the Companies Act, 2013 or
section 560 of Company Act, 1956.

E. The Company has compiled with the number of layers prescribed under clause (87) of section 2 of the Companies Act 2013 read
with Companies (Restrictions on number of Layers) Rules, 2017.

F. The Company has not advanced or loaned or invested funds to any other person(s) or entity(is), including foreign
entities(intermediaries), with the understanding that the intermediary shall;

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

ii. Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

G. The Company has not received any funds from any person(s) or entity(ies), including foreign entities (Funding Party) with the
understanding (whether recorded in writing or otherwise) that the Company shall;

i. Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
Funding Party (Ultimate beneficiaries) or

ii. Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

H. The Company does not have any transactions which is not recorded in the books of accounts but 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).

I. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

J. The company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both
during the current or previous year.

K. There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond the statutory
period.

L. The borrowings obtained by the Group from banks have been applied for the purposes for which such loans were was taken.

Note 46(a): Code on Social Security, 2020

The Code on Social Security, 2020 (‘Code’) relating to employee benefits during employment and post-employment benefits received
Indian Parliament approval and Presidential assent in September 2020. The Code has been published in the Gazette of India. However,
the date on which the Code will come into effect has not been notified. The Company will assess the impact of the Code when it comes
into effect and will record any related impact in the period the Code becomes effective.

Note 46(b): Scheme of Arrangement

The Board at its meeting dated May 6, 2024 has approved the Scheme of Arrangement (“Scheme”) for transfer and vesting of “Advanced
materials division” of the company to Arvind Advanced Materials Limited, a wholly owned subsidiary of the company, on an ongoing
basis by way of slump sale with effect from the appointed date i.e. April 1, 2024 at book value, under Sec 230 to 232 and other applicable
provisions of the Companies Act, 2013

The Hon’ble National Company Law Tribunal (NCLT), Ahmedabad Bench, vide its order dated April 8, 2025, admitted the Company’s
application filed under Sections 230-232 of the Companies Act, 2013. The NCLT, inter alia, directed the Company to convene meetings
of its shareholders and creditors for the purpose of considering and, if deemed appropriate, approving the proposed Scheme of
Arrangement.

As the Scheme is subject to requisite regulatory and other approvals, no adjustments are required to be made in the financial statement
for the year ended March 31, 2025.

Note 47: Recent accounting pronouncements

The 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.

During the year ended March 31, 2025, MCA has notified Ind AS 117 - Insurance Contracts and amendments to Ind AS 116 - Leases,
relating to sale and lease back transactions, applicable from April 1, 2024. The Company has assessed that there is no significant impact
on its financial statements.

On May 9, 2025, MCA notifies the amendments to Ind AS 21 - Effects of Changes in Foreign Exchange Rates. These amendments aim
to provide clearer guidance on assessing currency exchangeability and estimating exchange rates when currencies are not readily
exchangeable. The amendments are effective for annual periods beginning on or after April 1, 2025. The Company is currently assessing
the probable impact of these amendments on its financial statements.

Note 48: Events occurring after the reporting period

The Company evaluates events and transactions that occur subsequent to the balance sheet date but prior to the approval of financial
statements to determine the necessity for recognition and/or reporting of subsequent events and transactions in the financial
statements.

The Board of Directors recommended a final dividend of ?3.75 per equity share of face value of ?10 each, for the financial year ended
March 31, 2025, subject to approval of shareholders in the ensuing Annual General Meeting.

For and on behalf of the board of directors of Arvind Limited

Sanjay S. Lalbhai Jayesh K. Shah Nigam Shah Krunal Bhatt

Chairman Director & Group Chief Financial Officer Chief Financial Officer Company Secretary

DIN: 00008329 DIN: 00008349

Place: Ahmedabad