July 23, 2021

BSE Limited

Listing Dept./ Dept. of Corporate Services Phiroze Jeejeebhoy Towers Dalal Street Mumbai - 400001

National Stock Exchange of India Limited

Listing Dept., Exchange Plaza, 5th Floor Plot No. C/1, G. Block Bandra-Kurla Complex Bandra (E) Mumbai - 400051

Symbol : ARVIND

Security ID : ARVIND

Dear Sir/Madam,

Security Code : 500101

Subject: Submission of Annual Report for the financial year 2020-21.

Pursuant to Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we submit herewith the Annual Report of the Company for the financial year 2020-21 alongwith the Notice convening the Annual General Meeting scheduled to be held on Wednesday, August 18, 2021 at 11:00 a.m. through Video Conference ("VC")/ Other Audio Visual Means ("OAVM").

The above is also available on the website of the Company at www.arvind.com.

Thanking you,

Yours faithfully, For Arvind Limited

RAMNIK VASHRAMBH AI BHIMANI Digitally signed by RAMNIK VASHRAMBHAI BHIMANI Date: 2021.07.23 13:37:58 +05'30'

R. V. Bhimani Company Secretary

Encl.: As above

ARVIND LIMITED CIN: l17119GJ1931PLC000093

Mr. Sanjay Lalbhai	- Chairman & Managing Director
Mr. Punit Lalbhai	- Executive Director
Mr. Kulin Lalbhai	- Executive Director
Mr. Jayesh Shah	- Director & Group Chief Financial Officer
Dr. Bakul Dholakia	- Independent Director
Ms. Renuka Ramnath	- Independent Director
Mr. Dileep Choksi	- Independent Director
Mr. Nilesh Shah	- Independent Director
Mr. Arpit Patel	- Independent Director

Mr. Arpit Patel	- Chairman
Mr. Dileep Choksi	- Member
Dr. Bakul Dholakia	- Member
Mr. Jayesh Shah	- Member
Mr. Nilesh Shah	- Member

Member - Member
Member
Member

Dr. Bakul Dholakia Mr. Sanjay Lalbhai Mr. Jayesh Shah

Chairman - Member
Member

Dr. Bakul Dholakia Ms. Renuka Ramnath Mr. Dileep Choksi - Chairman

Member - Member
Dr. Bakul Dholakia Mr. Sanjay Lalbhai Mr. Punit Lalbhai Mr. Jayesh Shah
Chairman - Member - Member
Member

Risk Management Committee

Mr. Dileep Choksi
Dr. Bakul Dholakia
Mr. Jayesh Shah

Mr. Nilesh Shah

Member - Member - Member - Member

Management Committee

Mr. Sanjay Lalbhai	- Member
Mr. Jayesh Shah	- Member
Mr. Punit Lalbhai	- Member
Mr. Kulin Lalbhai	- Member

Mr. R.V. Bhimani

Message from Chairman 04
Company Overview 07
Sustainability @ Arvind 11
CSR @ Arvind 15
Notice 19
Directors' Report 34
Corporate Governance Report 59
Management Discussion and Analysis 79
Business Responsibility Report 82
Standalone Financial Statements 93
Consolidated Financial Statements 167
Location & Sites 247

Registered Office

Naroda Road, Ahmedabad-380025, Gujarat, India Website: www.arvind.com

Deloitte Haskins & Sells LLP Chartered Accountants 19th Floor, Shapath V, S. G. Highway Ahmedabad - 380015

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Link Intime India Private Limited 5th Floor, 506 to 508 Amarnath Business Centre-1 (abc-1) Beside Gala Business Centre (GBC) Near St. Xavier's College Corner, Off C.G. Road Ellisbridge, Ahmedabad - 380006 Phone Nos.: 079-26465179/86/87 Fax No.: 079-26465179 E-mail: Website: [email protected] www.linkintime.co.in

For 04. Denim volumes stood at 20M meters, which was aboul 13% higher Lhan previous year. However. on a full year basis, Denim fabric business saw a decrease in volume from 80 M meters to 62 M meters. The export segments recovered much faster and stayed strong. Among the domestic market s, tier-2/3 brands were relatively less Impacted. The company continued to strengthen its sustainability credentials among key customers. Also. Indigo knits range of products were launched during the year which were received well by our brand customers. During the fourth quarter. the Denim business also saw recovery in price realization and helped close the overall year at INR 191 per meter. which just surpassed last year's realization. For the full year though. Denim revenues stood at INR 1225 crores (about 20% lower than last year).

Woven

81 M meters

Similar to Denim, Woven volumes also recovered well towards t l1e end of FY21. and for 04 stood at 28 M meters which were higher by 3 M met ers compared to 04 FY20. For Lhe full year. Woven volumes stood at 81 M meters compared to 125 M meters in FY20. Woven business saw significantly reduced volumes in the domestic business as key brands and retailers continued to remain impacted by Covid related shut· downs and shopping restrictions. Also. reduced work-place visits, occasions and social get· togethers kept shoppers away from refreshing/ augmenting their wardrobes. In comparison. tl1e exports business to key brands recovered nicely in tandem with reopening of global retailers and brands. especially during the second half of the year. The domestic B2C business including The Arvind Slores saw severe headwinds during the year. Voiles business which predominantly Lhrives on women's dress materials In smaller towns was relatively less impacted as those markets remained less hampered by Lhe Firsl wave of Covid. Woven revenues decl I ned to IN R 1259 crores from INR 2164 crores tasl year.

During the year. we brought all the garment manufacluring capacities under a unif1ecl organization structure to leverage senior expertise across all units, The new faci lities implemented in the previous year were stabilized. and some of the lesser utilized assets were shut-down/ consolidated. All these iniliatfves feel to a p.ortfolio of robusl supply base with a competitive and sustainable cost structure. This helped weather the disruptions caused by Covid, and associated shut-downs which impacted our facilities in Karnalaka quite severely. Although the volumes recovered to 90%+ in Lhe second hair of the year. ror Lhe full year. the total garment shipments, excluding essentials stood at 32 million pieces (down 10 million pcs from 42 million in FY20).

The financial performance of this business also suffered from reduction in government incentives. and lack of clarity around RoDTEP.

Advanced Materials

679 Crores

Revenues INR Crores

713	679

Advanced Materials Division (AMD) saw continuing demand for its products through the pandemic during all times in FY2021. However. the AlvlD businesses did face supply side challenges as facilities worked at less than full capacity owing to worker shortage. Also. supply of input raw materials remained patchy and by H2. their prices start to soar high. Yes. the business delivered a healthy topline of INR 679 crores. which was slighlly lower than 713 crores in FY20. Also. the EBITDA margins for this business Improved from 12.9% in FY20 to 14.4% in FY21. AMD is comprised of three main businesses - Human Protection. Advanced Composites and Industrials. Human Protection segment. that makes and sells specialty functional apparel such as Fire Retardant. Work Wear. Abrasion Resistanl suits, Low lemperature clothing etc.. consolidated its position in large global accounts as a preferred supplier. Composites business continued to diversify its product portfolio Lowards higher value products including carbon-fibre-reinforced sports goods which have got strong market reception. Tt1e Industrial products businesses - which Include various kinds or liquid and gas filtralion. belling. coated fabrics and yarn - also saw nice pickup on the revenue side. and delivered healthy contributions

At Arvind, we have well defined Sustainability approach and strategy, called Fundamentally Right.

Arvincl has always rocussecl on input management as preferred approach to sustainability ratl1er than just looking at taflpipe management. This fundamentally right philosopt1y 11as l1elped us to improve our sustainability performance over the years. We are now integrating thls approach across the value chain to enhance performance of our allies too.

Right alliances accelerate sustainability performance. At Arvind. we see allying as the process of formally co-operating with like-minded forces and combining resources. expertise. networks and assets towards a common purpose: To achieve larger sustainability goals faster.

We have identified key material areas. important to us as wel as our stakeholders. These key areas for:TI tre foundatron of our Susta'nabllity work. 'hese '11aterial areas cire:

Energy

Our Focus is two pronged. firstly to reduce the specific energy consumption per met er of fabric production. and secondly to shi~ to more and more renewable sources of energy. Over the years we have managed to install 22 MW of renewable electricity generation facilities across our operations. We have also shifted 25% of our coal consumption to renewable Biomass. Our facilities have won muftiple Energy Efficiency awards and are best performing in t he Textile sector. Various energy efficiency measures as detailed in Director's report, have helped us to reduce our specific energy consumption.

Water

Water is the most crucial resource for Human survival. Hence our core focus over the years has been to eliminate the usage of fresh water from textile production. This ensures zero competing use or water with communities. agriculture and animals.Across our operations. we recycle 5 billion litres of water every year. We have also invested in water less dyeing and processing technologies to eliminate some of the water requirements. All our facilities are r uture ready in terms of water use regulations.

Chemicals

Chemicals are necessary to give textile the look, feel and properties thal we desire. We have worked over the years to ensure our chemical consumption has least impact on Environment. We screen each chemical consumed in our facilities with the help of globally established and accepted standards to ensure the usage of non-hazardous chemicals in our manufacturing processes. There is an ongoing focus on shif1ing to bet1er chemistry across various business divisions.

Cotton

Cotton is the key raw material for us. and over last 15 years we have worked with thousands of farmers to reduce the impact of cotton farming as well as to provide better livelihood to cotton farmers. Currently we are working with more than 80,000 farmers, spread across 300.000 acres of farmland in Gujarat Maharashtra and Madhya Pr.adesh. The various farm projects are focusing on Regenerative. Organic and BCI standards. We are also actively working on recycling fabric waste and incorporating recycled cotton in our fabric production. During the last year. a fabric waste recycling machine was installed where we are presently recycling 3 tons of fabric waste per day.

People

At Arvind we employ more than 28.000 people across our operations. Our people strategy focuses on employees· health and safety. training, wellbeing and career progression. We have invested in safe workplaces and have been able to reduce number of incidents at workplace. Our strategy also focuses on training and development of our employees. Through Arvind Foundation. Lhe company engages in mul tiple external programs for the benefit of the society.

Our CSR programs are in the realm of education. rural transformat.on. livelihood promotion. art and heritage. women empowerment and inner wellbeing. The proiects and programs are in accordance to the i:hemat1c areas as defined in Schedule VII of the Companies Act. 2013. The development initiatives are being carried out by company promoted organizations-Strategic Help Alliance for Relief to Distressed Areas <SHARDA) Trust. Narortam Lalbhai Rural Development Fund (N LRDF) and Arv ind r-ounda rion (AF) and other partner Civil Society Organizations. The organizations have formed synergistic partnerships to enhance the quality of deliverables and increase the reach of the programs.

The company has defined three broader themes 10 bring larger focus in our CSR initiatives. The broad three thematic areas are Educational Advancement. Rural Advancement and Cult.....ral Advancement. All our initiatives will broadly be falling under the given three umbrella without limiting the purpose. scope and nexibility of CSR initiatives.

Education

Under the broad theme of Educational Advancement. Gyanda is our supplementary education program designed for primary, secondary and higher secondary school going children. This initiative is carried out by SHARDA Trust, Company's CSR arm. The Trust didn't receive any funds 'from the company and it has managed this initiatives through Group Company's CSR support and its own funding sources. The initiative. though has tried to continue supporting its students through online teaching, we notice a huge issue with access to technology and working on stepping up to Lhe challenge. During 2019-20, Gyanda had an enrolment or more than 1. 100 students.

Rural Transformation

Under the broad theme of Rural Advancement. the Arvind Rural Transformation Initiative CARTI) is a corn bin ati on oflon g term integrated programs focused in defined geographies in Ahmedabad. Gandhinagar and Narmada districts of Gujarat. As part of our regular rural advancement programme. Farmers' training on sustainable agricultural farming and an orientation on the concept of Farmer Producer Organisation <FPO) was organised in spite of pandemic. A group of women got training for advanced animal husbandry and best clairy practices. 140 women from Hazipur and Jetlej villages have been assessed through a Need assessment process for non-farm livelihood and 30 women have shown their readiness for enterprise setup. We will take up this program shortly.

Livelihood Promotion through tribal home stay project

We reported last year that the as part of our Rural Transformation program. we carried out a Home Stay Project in villages in Garudeshwar Taluka in Narmada District. With the aim to increase the income of tribal families. quality home stay Facilities were created for tourist at rural homes. The Ta Iuka has the advantage of hosting the World's tallest statue- The Statue of Unity which is a major tourist destination there and hence a huge potential of additional alternative income for the native tribal families. The Arvind Smart Spaces Limited (ASSL) managed the project pro bono on behalf of the company. With the technical expertise. ASSL created a team and undertook site survey, feasibility study. house level mapping, vendor management and supervising the overall execution. The project was completed successfully and a total of 37 rooms in 26 houses were constructed for tourist's occupation. Arvind Foundation has linked the 26 tribal families with dignified livelihood in record time and projecl is creating lasting impact in the lives of people. The project was completed during 2020-21.

Inner Well Being

We reported last year that as part of our rural transformation strategy, Arvind is carrying out an Inner Wellbeing Program in rural Gujarat and Rajasthan since last four years. This is result of our conviction that the physical and social developments are meaningful only if people are also well and experience peace from within. This program is based on the Sahaj Marg system of meditation called Hearfulness and it reached to close to 200 places and around 151000 people during 2019-20. This programme was hugely hit due to pandemic as movement to the distant rural location wasn't possible. The partner organization SHARDA continuecl supporting this initiative. though at much lower scale.

Promotion of lndology

We reported last year that as part of our commitment to support Cultural Advancement. the company supported Lalbhai Dalpatbhai Bhartiya Sanskriti Vidyamandir (LDBSV) for the project named Promotion of lndology towards its efforts to preserve India's rich heritage. The project created a comprehensive digital repository of paper /palm-leaf manuscripts.

Indigo Museum

We reported last year that as part of our commit ment to suppo1t Cultural Advancement, the company has approved a unique plan to set up an Indigo Museum. The company supported this projecl through ANind Foundation.

Note: Our regular CSR initiatives v1ere hugely affected be it the Educational Advancement. Rural Advancemem or Cultural Advancement. We have tried to continue reaching out to our ommu ti ^~and frontline wor~ers and help them through o ur COV!D relief aper ations.

Notice

NOTICE is hereby given that the Annual General Meeting of the members of the Company will be held on Wednesday, the 18th August, 2021 at 11:00 a.m. through Video Conference ("VC")/ Other Audio Visual Means ("OAVM") ("hereinafter referred to as "electronic mode") to transact the following Business:

ORDINARY BUSINESS

1. To receive, consider and adopt the audited financial statements [including consolidated financial statements] of the Company for the financial year ended March 31, 2021 and the reports of the Directors and Auditors thereon.
1. To appoint a Director in place of Mr. Jayesh Kantilal Shah (holding DIN 00008349), who retires by rotation in terms of Article 168 of the Articles of Association of the Company and being eligible, offers himself for reappointment.

SPECIAL BUSINESS

To consider and, if thought fit, to pass with or without modification(s), the following resolution as a Special Resolution:

RESOLVED THAT pursuant to the provisions of Sections 197, 198 and other applicable provisions, if any, of the Companies Act, 2013 ("the Act") read with Schedule V thereto and the Rules made thereunder and SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015 including any amendment(s), statutory modification(s) or re-enactment(s) thereof for the time being in force and in supersession of the Special Resolution No. 3 passed in the Annual General Meeting held on 25th September, 2020 consent of the members of the Company be and is hereby accorded for the payment of commission to the Director(s) of the Company who is / are neither in the whole time employment nor a managing director(s), in accordance with and up to the limits not exceeding 1% as laid down under the provisions of Section 197 of the Act, for a period of 5 years from 1st April, 2021 to 31st March, 2026.

RESOLVED FURHTER THAT in the event of the Company having no profits or inadequate profits in any financial year, during the above mentioned period, the consent of the members of the Company be and is hereby accorded for the payment of Remuneration / Commission to the Director(s) of the Company who is / are neither in the whole time employment nor a managing director(s) in accordance with the limits specified in Part II of Section II (A) of Schedule V to the Act as applicable to the Company but not exceeding Rs. 50,00,000/- (Rupees Fifty Lakhs only) in such manner and up to such amount as the Board and/or Committee of the Board may, from time to time, determine.

RESOLVED FURTHER THAT Board of Directors or Management Committee of the Company be and is hereby authorised to do all acts, deeds and things as may be necessary to give effect to the foregoing resolution."

To consider and, if thought fit, to pass with or without modification(s), the following resolution as a Special Resolution:

RESOLVED THAT pursuant to the provisions of section 42, 71 and all other applicable provisions, if any, of the Companies Act, 2013 ("the Act") and Rules made thereunder (including any statutory modifications, clarifications, exemptions or re-enactment thereof, from time to time) and pursuant to the provisions of SEBI (Issue and Listing of Debt Securities) Regulations, 2008 as amended up to date and other applicable SEBI regulations and guidelines, the provisions of Memorandum and Articles of Association of the Company and subject to such applicable laws, rules and regulations and guidelines, approval of the members of the Company be and is hereby accorded to the Board of Directors of the Company (hereinafter referred to as "the Board" which term shall include any Committee thereof which the Board may have constituted/ reconstituted to exercise its powers including the powers conferred by this Resolution) to offer, issue and allot, in one or more tranches Secured/ Unsecured/ Redeemable Nonconvertible Debentures (NCDs) including but not limited to subordinated debentures, bonds, and/ or other debt securities etc. on private placement basis, during the period of one year from the date of passing of the Special Resolution by the members, for an amount not exceeding Rs.200 Crores (Rupees Two Hundred Crores only) on such terms and conditions and at such times, at par or at such premium, as may be decided by the Board to such person(s), including one or more company(ies), bodies corporate, statutory corporations, commercial banks, lending agencies, financial institutions, insurance companies, mutual funds, pension/ provident funds and individuals, as the case may be or such other person(s) as the Board/ Committee of Directors may decide so, however, that the aggregate amount of funds to be raised by issue of NCDs, subordinated debentures, bonds, and/ or other debt securities etc. shall not exceed the overall borrowing limits of the Company, as may be approved by the Members from time to time.

RESOLVED FURTHER THAT without prejudice to the generality of the above and for the purpose of giving effect to the above, the Board be and is hereby authorized to determine as to the time of issue of the NCDs, the terms of the issue, number of NCDs to be allotted in each tranche, issue price, rate of interest, redemption period, security, listing on one or more recognized stock exchanges and all such terms as are provided in offering of a like nature as the Board may in its absolute discretion deem fit and to make and accept any modifications in the proposal as may be required by the authorities involved in such issues and to settle any questions or difficulties that may arise in regard to the said issue(s).

RESOLVED FURTHER THAT the approval is hereby accorded to the Board to appoint lead managers, arrangers, underwriters, depositories, registrars, trustees, bankers, lawyers, advisors and all such agencies as may be involved or concerned in such offerings and to remunerate them by way of commission, brokerage, fees or the like (including reimbursement of their actual expenses) and also to enter into and execute all such arrangements, contracts/ agreements, memorandum, documents etc., with such agencies and to do such acts, deeds, things and execute all such documents, undertakings as may be necessary for giving effect to this resolution.

To consider and, if thought fit, to pass with or without modification(s), the following resolution as a Special Resolution:

RESOLVED THAT pursuant to the provisions of Section 42, 62(1)(b) of the Companies Act, 2013 ("the Act") and the Companies (Share Capital and Debentures) Rules, 2014 and other applicable provisions, if any, of the Act, including any statutory modification(s) or re-enactment of the Act for the time being in force and in accordance with the provisions of the Memorandum and Articles of Association of the Company and the provisions of the Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 including any modifications thereof or supplements thereto ("the SEBI ESOS Regulations") as and when they become applicable to the Company, SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("the SEBI LODR Regulations") as and when they become applicable to the Company, the Listing Agreement entered into with the Stock Exchange where the securities of the Company are listed and any other applicable laws for the time being in force and subject to such other consents, permissions, sanctions and approvals which may be agreed by the Board of Directors of the Company (which shall be deemed to include the Nomination and Remuneration Committee or any other Committee of the Board of Directors constituted by the Board, to exercise its powers including powers conferred by this Resolution) (hereinafter referred to as "the Board" or as "the Committee"), consent of the Shareholders be and is hereby accorded to create, offer, issue and allot at any time to or for the benefit of such person(s) who are in permanent employment of the Company (whether now or hereafter existing as may be from time to time be allowed under the prevailing laws, rules and regulations and / or any amendments thereto from time to time), whether working in India or out of India, including Director of the Company, whether Whole-time director or not, but excluding Promoter, Promoter group and independent Directors and such other persons as may from time to time be allowed to be eligible for the benefit under the provisions of applicable laws and Regulations prevailing from time to time (hereinafter collectively referred to as "Employees") selected on the basis of criteria decided by the Board such number of stock options exercisable into not more than 1,00,00,000 (One Crore only) equity shares of the Company of face value of Rs. 10 each, under one or more Employee Stock Option Schemes, in one or more tranches, and on such terms and conditions as may be fixed or determined by the Board in accordance with the provisions of the law or guidelines issued by the relevant Authority.

RESOLVED FURTHER THAT the maximum number of stock incentives granted to Eligible Employees of the Company, its holding Company and its subsidiaries under the scheme shall not cumulatively exceed 1,00,00,000 (One Crore only) stock options exercisable into not more than 1,00,00,000 (One Crore only) equity shares of face value Rs. 10/- each.

RESOLVED FURTHER THAT in case of any corporate action (s) such as rights issues, bonus issues, merger and sale of division and others, for the purpose of making a fair and reasonable adjustment, the number of options to be granted and / or the exercise price payable under the Schemes shall be appropriately adjusted, without affecting any other rights or obligations under the Schemes.

RESOLVED FURTHER THAT the Board be and is hereby authorised to issue and allot Equity shares upon exercise of options from time to time in accordance with the employee stock option Schemes and such Equity shares shall rank pari passu in all respects with the then existing Equity Shares of the Company.

RESOLVED FURTHER THAT in case the equity shares of the Company are either sub-divided or consolidated, then the number of shares to be allotted and the price of acquisition payable by the option grantees under the Schemes shall automatically stand augmented or reduced, as the case may be, in the same proportion as the present face value of Rs. 10 per equity share bears to the revised face value of the equity shares of the Company after such sub-division or consolidation, without affecting any other rights or obligations of the said option grantees.

RESOLVED FURTHER THAT that the Board/Committee, be and are hereby authorized to settle all questions, difficulties or doubts that may arise in relation/reference to the amendment of the Scheme to the end and intent that the Members shall be deemed to have given their approval thereto expressly by the authority of this Resolution.

RESOLVED FURTHER that the Board/Committee be and is hereby authorized to vary, amend, modify or alter the terms of the Scheme in accordance with and subject to the terms of the Act and any Guidelines, Rules or Regulations that may be issued by any regulatory/statutory authority, as applicable.

RESOLVED FURTHER that any future grants of options be made by the Board or Nomination and Remuneration Committee only under the newly instituted Employee Stock Option Scheme 2021 and no further grants will be made under any existing Employee Stock Option Schemes of the Company after Employee Stock Option Scheme 2021 is implemented.

RESOLVED FURTHER that the Board/Committee, be and is hereby severally authorized to do all such acts, deeds and things and execute all such deeds, documents and instruments and writings as may be necessary and incidental for giving effect to the above.

To consider and, if thought fit, to pass with or without modification(s), the following resolution as an Special Resolution:

RESOLVED THAT pursuant to the provisions of Section 42, 62(1)(b) of the Companies Act, 2013 ("the Act") and the Companies (Share Capital and Debentures) Rules, 2014 and other applicable provisions, if any, of the Act, including any statutory modification(s) or re-enactment of the Act for the time being in force and in accordance with the provisions of the Memorandum and Articles of Association of the Company and the provisions of the Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 including any modifications thereof or supplements thereto ("the SEBI ESOS Regulations") as and when they become applicable to the Company, SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("the SEBI LODR Regulations") as and when they become applicable to the Company, the Listing Agreement entered into with the Stock Exchange where the securities of the Company are listed and any other applicable laws for the time being in force and subject to such other consents, permissions, sanctions and approvals which may be agreed by the Board of Directors of the Company (which shall be deemed to include the Nomination and Remuneration Committee or any other Committee of the Board of Directors constituted by the Board, to exercise its powers including powers conferred by this Resolution) (hereinafter referred to as "the Board" or as "the Committee"), consent of the Shareholders be and is hereby accorded to create, offer, issue and allot at any time to or for the benefit of such person(s) who are in permanent employment of the holding company and the subsidiaries of the Company (whether now or hereafter existing, whether incorporated in India or overseas as may be from time to time be allowed under the prevailing laws, rules and regulations and / or any amendments thereto from time to time), whether working in India or out of India, including Director of the Holding Company or Subsidiaries Companies, whether Whole-time director or not, but excluding Promoter, Promoter group and independent Directors and such other persons as may from time to time be allowed to be eligible for the benefit under the provisions of applicable laws and Regulations prevailing from time to time (hereinafter collectively referred to as "Employees") selected on the basis of criteria decided by the Board such number of stock options exercisable into not more than 1,00,00,000 (One Crore only) equity shares of the Company of face value of Rs.10 each, under one or more Employee Stock Option Schemes, in one or more tranches, and on such terms and conditions as may be fixed or determined by the Board in accordance with the provisions of the law or guidelines issued by the relevant Authority.

To consider and, if thought fit, to pass with or without modification(s), the following resolution as an Ordinary Resolution:

RESOLVED THAT pursuant to the provisions of Section 148 and any other applicable provisions of the Companies Act, 2013, read with the Companies (Audit and Auditors) Rules, 2014 (including any statutory modification(s) or re-enactment thereof, for the time being in force), the remuneration of Rs. 3.75 lakhs (Rupees three lakhs seventy five thousand only) plus applicable taxes and reimbursement of out-of-pocket expenses in connection with the audit, payable to M/s. Kiran J. Mehta & Co., Cost Accountants, Ahmedabad having Firm Registration No. 000025, appointed by the Board to conduct the audit of the cost records of the Company for the financial year ending 31st March 2022, be and is hereby ratified and confirmed.

RESOLVED FURTHER THAT the Board of Directors of the Company be and is hereby authorized to do all such acts and take all such steps as maybe necessary, proper or expedient to give effect to this Resolution.

Naroda Road Ahmedabad-380025 Date: May 26, 2021

Registered Office: By Order of the Board R. V. Bhimani Company Secretary

Notes

1. In view of the continuing Covid-19 pandemic, the Ministry of Corporate Affairs ("MCA") has vide its Circular No. 02/2021 dated January 13, 2021 read with Circular No. 20 dated May 5, 2020, Circular No. 17 dated April 13, 2020 and circular No. 14 dated April 8, 2020 (hereinafter collectively referred to as "MCA Circulars") and Circular Nos. SEBI/HO/CFD/CMD1/CIR/P/2020/79 and SEBI/HO/CFD/CMD2/CIR/P/2021/11 dated May 12, 2020 and January 15, 2021 respectively, permitted the holding of Annual General Meeting through VC or OAVM without the physical presence of Members at a common venue. In compliance with these MCA Circulars and the relevant provisions of the Companies Act, 2013 and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Annual General Meeting of the Members of the Company is being held through VC/OAVM. Hence, Members can attend and participate in the AGM through VC/OAVM only. The deemed venue for the Annual General Meeting of the Company shall be the Registered Office of the Company. The detailed procedure for participating in the meeting through VC/OAVM is explained at Note No. 18 below.
1. The Notice of the Annual General Meeting along with the Annual Report for the financial year 2020-21 is being sent only by electronic mode to those Members whose email addresses are registered with the Company/ Depositories in accordance with the aforesaid MCA and SEBI Circulars. Members may note that the Notice of Annual General Meeting and Annual Report for the financial year 2020-21 will also be available on the Company's website www.arvind.com; websites of the Stock Exchanges i.e. National Stock Exchange of India Ltd and BSE Limited at www.nseindia.com and www.bseindia.com respectively.
1. Pursuant to the provisions of the Companies Act, 2013, a Member entitled to attend and vote at the Annual General Meeting is entitled to appoint a proxy to attend and vote on his/her behalf and the proxy need not be a Member of the Company. Since this AGM is being held pursuant to the MCA Circulars through VC/OAVM, physical attendance of Members has been dispensed with. Accordingly, the facility for appointment of proxies by the Members will not be available for the Annual General Meeting and hence the Proxy Form and Attendance Slip are not annexed to the Notice.
1. Members attending the meeting through VC/OAVM shall be counted for the purposes of reckoning the quorum under Section 103 of the Companies Act, 2013.
1. In case of joint holders attending the AGM, the Member whose name appears as the first holder in the order of names as per the Register of Members of the Company will be entitled to vote.
1. The Members can join the AGM in the VC/OAVM mode 15 minutes before and after the scheduled time of the commencement of the Meeting by following the procedure mentioned in the Notice. Members may note that the VC/OAVM Facility, provided by NSDL, allows participation of 1,000 Members on a first-come-firstserved basis. The large shareholders (i.e. shareholders holding 2% or more shareholding), promoters, institutional investors, directors, key managerial personnel, the Chairpersons of the Audit Committee, Nomination cum Remuneration Committee and Stakeholders Relationship Committee, auditors, etc. can attend the AGM without any restriction on account of first-come-firstserved principle.
1. The relative Explanatory Statement pursuant to Section 102 of the Companies Act, 2013 setting out material facts concerning the business under Item Nos. 3 to7 of the Notice, is annexed hereto. The relevant details, as required under Regulation 36(3) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Secretarial Standard – 2 on General Meetings issued by the Institute of Company Secretaries of India, of the person seeking appointment/ re-appointment as a Director under Item No. 2 of the Notice is also annexed to the notice.
1. The Register of Members and Share Transfer Books of the Company will remain closed from Thursday, 12th August, 2021 till Wednesday, 18th August, 2021 (both days inclusive).
1. Members are requested to intimate changes, if any, pertaining to their name, postal address, email address, telephone/ mobile numbers, mandates, nominations, power of attorney, bank details such as, name of the bank and branch details, bank account number, MICR code, IFSC code, etc., to their DPs in case the shares are held by them in electronic form and to the Company's Registrars and Transfer Agents, Link Intime India Pvt. Ltd. in case the shares are held by them in physical form.

SEBI has mandated the submission of Permanent Account Number (PAN) by every participant in securities market. Members holding shares in electronic form are, therefore, requested to submit the PAN to their depository participants with whom they are maintaining their demat accounts. Members holding shares in physical form can submit their PAN details to Link Intime India Pvt. Ltd.

1. As per Regulation 40 of SEBI Listing Regulations, as amended, securities of listed companies can be transferred only in dematerialized form with effect from April 1, 2019, except in case of request received for transmission or transposition of securities. In view of this and to eliminate all risks associated with physical shares and for ease of portfolio management, members holding shares in physical form are requested to consider converting their holdings to dematerialized form. Members can contact the Company or Link Intime India Pvt. Ltd. for assistance in this regard.
1. Members holding shares in physical form, in identical order of names, in more than one folio are requested to send to the Company or Link Intime India Pvt. Ltd., the details of such folios together with the share certificates for consolidating their holdings in one folio. A consolidated share certificate will be issued to such Members after making requisite changes.
1. Members intending to require information about Accounts in the Meeting are requested to inform the Company at least 7 days in advance of the AGM.
1. All unclaimed dividends and shares in respect thereof up to the financial year 2005-06 and for financial years 2011-12 and 2012-13 have been transferred to the Investor Education and Protection Fund (IEPF) of the Central Government. The Company did not declare any dividends on equity shares for the financial years 2006-07 to 2010-11 and 2019-20. Unclaimed and unpaid dividends and shares in respect thereof for the financial years 2013-14 to 2018-19 will be transferred to this fund on due dates. Those members who have so far not encashed their dividend for the said financial years are requested to approach the Company or its RTA for payment thereof. Kindly note that once unclaimed and unpaid

dividends and shares in respect thereof are transferred to the Investor Education and Protection Fund, members will have to approach to IEPF for such dividends and shares.

1. All documents referred to in the accompanying Notice of the AGM and explanatory statement shall be open for inspection without any fee at the registered office of the Company during normal business hours on any working day upto and including the date of the AGM of the Company.
1. A person who is not a Member as on the cut-off date should treat this Notice for information purposes only.
1. Since the AGM will be held through VC/OAVM, the Route Map is not annexed with Notice.

17. Instructions for voting through electronic means (e-Voting):

I. In compliance with the provisions of Section 108 of the Companies Act, 2013 read with the Companies (Management and Administration) Rules, 2014 and Regulation 44 of the Listing Regulations, the Company is pleased to provide to its Members facility to exercise their right to vote on resolutions proposed to be passed in the Meeting by electronic means.
II. The Company has engaged the services of NSDL as the Agency to provide remote e-Voting facility and e-Voting during the AGM.
III. Mr. Hitesh Buch, Practicing Company Secretary (Membership No. FCS 3145, COP 8195) has been appointed as the Scrutinizer to scrutinize the e-Voting during the AGM and remote e-Voting in a fair and transparent manner.
IV. The Results of voting will be declared within 48 hours from the conclusion of the AGM. The declared Results, along with the Scrutinizer's Report will be submitted with the Stock Exchanges where the Company's equity shares are listed (BSE Limited & National Stock Exchange of India Limited) and shall also be displayed on the Company's website www.arvind.com and NSDL's website www.evoting.nsdl.com.
V. Voting rights of the Members for voting through remote e-Voting and voting during the AGM shall be in proportion to shares of the paid-up equity share capital of the Company as on the cut-off date i.e. Wednesday, 11th August 2021. A person, whose name is recorded in the Register of Members or in the Register of Beneficial owners (as at the end of the business hours) maintained by the depositories as on the cut-off date shall only be entitled to avail the facility of remote e-Voting and voting during the AGM.
VI. The remote e-Voting facility will be available during the following period:
a. Commencement of remote e-Voting: 09:00 A.M. (IST) on Saturday, 14th August, 2021.
b. End of remote e-Voting: 05:00 P.M. (IST) on Tuesday, 17th August, 2021.
c. The remote e-Voting will not be allowed beyond the aforesaid date and time and the remote e-Voting module shall be disabled by NSDL upon expiry of aforesaid period.
VII. Those Members, who will be present in the AGM through VC/OAVM facility and have not cast their vote on the Resolutions through remote e-Voting and are otherwise not

barred from doing so, shall be eligible to vote through e-Voting system during the AGM.

VIII. The Members who have cast their vote by remote e-Voting prior to the AGM may also attend/ participate in the AGM through VC/OAVM but shall not be entitled to cast their vote again.
IX. Any person, who acquires shares of the Company and becomes a Member of the Company after sending of the Notice and holds shares as of the cut-off date, may obtain the login ID and password by sending a request at [email protected] mentioning their demat account number/ folio number, PAN, name and registered address. However, if he/ she is already registered with NSDL for remote e-Voting then he/ she can use his/ her existing User ID and password for casting the vote.

X. Process and manner for Remote e-Voting:

Members are requested to follow the below instructions to cast their vote through e-Voting:

The way to vote electronically on NSDL e-Voting system consists of "Two Steps" which are mentioned below:

Step 1: Access to NSDL e-Voting system

Step 2: Cast your vote electronically on NSDL e-Voting system

Step 1: Access to NSDL e-Voting system

(A) Login method for e-Voting and joining virtual meeting for Individual shareholders holding securities in demat mode

In terms of SEBI circular dated December 9, 2020 on e-Voting facility provided by Listed Companies, Individual shareholders holding securities in demat mode are allowed to vote through their demat account maintained with Depositories and Depository Participants. Shareholders are advised to update their mobile number and email Id in their demat accounts in order to access e-Voting facility.

Type of shareholders	Login Method
Individual Shareholders holding securities in demat mode with NSDL.	1. If you are already registered for NSDL IDeAS facility, please visit the e-Services website of NSDL. Open web browser by typing the f o l l owi n g UR L : https://eservices.nsdl.com/ either on a Personal Computer or on a mobile. Once the home page of e Services is launched, click on the "Beneficial Owner" icon under "Login" which is available under "IDeAS" section. A new screen will open. You will have to enter your User ID and Password. After successful authentication, you will be able to see e-Voting services. Click on "Access to e-Voting"

Type of shareholders

Individual
Shareholders
holding securities in demat
mode with NSDL.

1.
If you are already registered for
NSDL IDeAS facility, please visit
the e-Services website of NSDL.
Open web browser by typing the
f o l l owi n g
UR L :
https://eservices.nsdl.com/
either
on a Personal Computer or on a
mobile. Once the home page of e
Services is launched, click on the
"Beneficial Owner" icon under
"Login" which is available under
"IDeAS" section. A new screen will
open. You will have to enter your
User
ID
and
Password.
After
successful authentication, you will
be able to see e-Voting services.
Click
on
"Access
to
e-Voting"

2020 - 2021

Type of shareholders	Login Method	Type of shareholders	Login Method
	under e-Voting services and you will be able to see e-Voting page. Click on options available against company name or e-Voting service provider - NSDL and you will be re-directed to NSDL e Voting website for casting your vote during the remote e-Voting period or joining virtual meeting & voting during the meeting. 2. If the user is not registered for IDeAS e-Services, option to r e g ist e r is a v a i l a b l e a t https://eservices.nsdl.com. Select "Register Online for IDeAS" Po rt a l o r c l i c k a t https://eservices.nsdl.com/SecureW eb/IdeasDirectReg.jsp 3. Visit the e-Voting website of NSDL. Open web browser by typing the f o l l owi n g UR L : https://www.evoting.nsdl.com/ either on a Personal Computer or on a mobile. Once the home page of e-Voting system is launched, click on the icon "Login" which is available under 'Shareholder/ Member section. A new screen will open. You will have to enter your User ID (i.e. your sixteen digit demat account number held with NSDL), Password/OTP and a Verification Code as shown on the s c r e e n . Aft e r s u c c e ssf u l authentication, you will be redirected to NSDL Depository site wherein you can see e-Voting page. Click on options available against company name or e-Voting service provider - NSDL and you will be redirected to e-Voting website of NSDL for casting your vote during the remote e-Voting period or joining virtual meeting & voting during the meeting.	Individual Shareholders (holding securities in demat mode) login through their depository participants	2. After successful login of Easi/Easiest the user will be also able to see the E Voting Menu. The Menu will have links of e-Voting service provider i.e. NSDL. Click on NSDL to cast your vote. 3. If the user is not registered for Easi/Easiest, option to register is a v a i l a b l e a t https://web.cdslindia.com/myeasi/R egistration/EasiRegistration 4. Alternatively, the user can directly access e-Voting page by providing demat Account Number and PAN No. from a l i n k i n www.cdslindia.com home page. The system will authenticate the user by sending OTP on registered Mobile & Email as recorded in the demat Account. After successful authentication, user will be provided links for the respective ESP i.e. NSDL where the e-Voting is in progress. You can also login using the login credentials of your demat account through your Depository Participant registered with NSDL/CDSL for e Voting facility. Once login, you will be able to see e-Voting option. Once you click on e-Voting option, you will be redirected to NSDL/CDSL Depository site after successful authentication, wherein you can see e-Voting feature. Click on options available against company name or e-Voting service provider-NSDL and you will be redirected to e-Voting website of NSDL for casting your vote during the remote e-Voting period or joining virtual meeting & voting during the meeting.
Individual Shareholders holding securities in demat mode with CDSL	1. Existing users who have opted for Easi / Easiest, they can login through their user id and password. Option will be made available to reach e-Voting page without any further authentication. The URL for users to login to Easi / E a si e st a r e https://web.cdslindia.com/myeasi/h ome/login or www.cdslindia.com and click on New System Myeasi.	available at abovementioned website.	Important note: Members who are unable to retrieve User ID/ Password are advised to use Forget User ID and Forget Password option

Helpdesk for Individual Shareholders holding securities in demat mode for any technical issues related to login through Depository i.e. NSDL and CDSL.

Login type	Helpdesk details
Individual Shareholders holding securities in demat mode with NSDL.	Members facing any technical issue in login can contact NSDL helpdesk by s e n d i n g a r e q u e st a t [email protected] or call at toll free no.: 1800 1020 990 and 1800 22 44 30
Individual Shareholders holding securities in demat mode with CDSL	Members facing any technical issue in login can contact CDSL helpdesk by s e n d i n g a r e q u e st a t [email protected] or contact at 022- 23058738 or 022- 23058542-43

(B) Login Method for shareholders other than Individual shareholders holding securities in demat mode and shareholders holding securities in physical mode.

How to Log-in to NSDL e-Voting website?

1. Visit the e-Voting website of NSDL. Open web browser by typing the following URL: https://www.evoting.nsdl.com/ either on a Personal Computer or on a mobile.
1. Once the home page of e-Voting system is launched, click on the icon "Login" which is available under 'Shareholder/Member' section.
1. A new screen will open. You will have to enter your User ID, your Password/OTP and a Verification Code as shown on the screen.

Alternatively, if you are registered for NSDL eservices i.e. IDEAS, you can log-in at https://eservices.nsdl.com/ with your existing IDEAS login. Once you log-in to NSDL eservices after using your log-in credentials, click on e-Voting and you can proceed to Step 2 i.e. Cast your vote electronically.

Your User ID details are given below :

Manner of holding shares i.e. Demat (NSDL or CDSL) or Physical	Your User ID is:
a) For Members who hold shares in demat account with NSDL	8 Character DP ID followed by 8 Digit Client ID For example, if your DP ID is IN300 and Client ID is 12 t h e n you r u s e r ID is IN30012**
b) For Members who hold shares in demat account with CDSL	16 Digit Beneficiary ID For example, if your Beneficiary ID is 12 then your user ID is 12

c) For Members holding shares in Physical Form	EVEN Number followed by Folio Number registered with the company
	For example, if folio number is 001 and EVEN is 101456 then user ID is 101456001

1. Password details for shareholders other than Individual shareholders are given below:
a) If you are already registered for e-Voting, then you can user your existing password to login and cast your vote.
b) If you are using NSDL e-Voting system for the first time, you will need to retrieve the 'initial password' which was communicated to you. Once you retrieve your 'initial password', you need to enter the 'initial password' and the system will force you to change your password.
c) How to retrieve your 'initial password'?
(i) If your email ID is registered in your demat account or with the company, your 'initial password' is communicated to you on your email ID. Trace the email sent to you from NSDL from your mailbox. Open the email and open the attachment i.e. a .pdf file. Open the .pdf file. The password to open the .pdf file is your 8 digit client ID for NSDL account, last 8 digits of client ID for CDSL account or folio number for shares held in physical form. The .pdf file contains your 'User ID' and your 'initial password'.
(ii) If your email ID is not registered, please follow steps mentioned below in process for those shareholders whose email ids are not registered
1. If you are unable to retrieve or have not received the "Initial password" or have forgotten your password:
a) Click on "Forgot User Details/Password?"(If you are holding shares in your demat account with NSDL or CDSL) option available on www.evoting.nsdl.com.
b) Physical User Reset Password?" (If you are holding shares in physical mode) option available on www.evoting.nsdl.com.
c) If you are still unable to get the password by aforesaid two options, you can send a request at [email protected] mentioning your demat account number/folio number, your PAN, your name and your registered address etc.
d) Members can also use the OTP (One Time Password) based login for casting the votes on the e-Voting system of NSDL.
1. After entering your password, tick on Agree to "Terms and Conditions" by selecting on the check box.
1. Now, you will have to click on "Login" button.
1. After you click on the "Login" button, Home page of e-Voting will open.

Step 2: Cast your vote electronically and join General Meeting on NSDL e-Voting system.

How to cast your vote electronically and join General Meeting on NSDL e-Voting system?

1. After successful login at Step 1, you will be able to see all the companies "EVEN" in which you are holding shares and whose voting cycle and General Meeting is in active status.
1. Select "EVEN" of company for which you wish to cast your vote during the remote e-Voting period and casting your vote during the General Meeting. For joining virtual meeting, you need to click on "VC/OAVM" link placed under "Join General Meeting".
1. Now you are ready for e-Voting as the Voting page opens.
1. Cast your vote by selecting appropriate options i.e. assent or dissent, verify/modify the number of shares for which you wish to cast your vote and click on "Submit" and also "Confirm" when prompted.
1. Upon confirmation, the message "Vote cast successfully" will be displayed.
1. You can also take the printout of the votes cast by you by clicking on the print option on the confirmation page.
1. Once you confirm your vote on the resolution, you will not be allowed to modify your vote.

General Guidelines for shareholders

1. Institutional shareholders (i.e. other than individuals, HUF, NRI etc.) are required to send scanned copy (PDF/JPG Format) of the relevant Board Resolution/ Authority letter etc. with attested specimen signature of the duly authorized signatory(ies) who are authorized to vote, to the Scrutinizer by e-mail to [email protected] with a copy marked to [email protected].
1. It is strongly recommended not to share your password with any other person and take utmost care to keep your password confidential. Login to the evoting website will be disabled upon five unsuccessful attempts to key in the correct password. In such an event, you will need to go through the "Forgot User Details/Password?" or "Physical User Reset Password?" option available on www.evoting.nsdl.com to reset the password.
1. In case of any queries, you may refer the Frequently Asked Questions (FAQs) for Shareholders and e-voting user manual for Shareholders available at the download section of www.evoting.nsdl.com or call on toll free no.: 1800 1020 990 and 1800 22 44 30 or send a request to [email protected]

Process for those shareholders whose email ids are not registered with the depositories for procuring user id and password and registration of e mail ids for e-voting for the resolutions set out in this notice:

1. In case shares are held in physical mode please provide Folio No., Name of shareholder, scanned copy of the share certificate (front and back), PAN (self attested scanned copy of PAN card), AADHAR (self attested scanned copy of Aadhar Card) by email to [email protected].
1. In case shares are held in demat mode, please provide DPID-CLID (16 digit DPID + CLID or 16 digit beneficiary ID), Name, client master or copy of Consolidated Account statement, PAN (self attested scanned copy of PAN card), AADHAR (self attested scanned copy of Aadhar Card) to [email protected]. If you are an Individual shareholders holding securities in demat mode, you are requested to refer to the login method explained at step 1 (A) i.e. Login method for e-Voting and joining virtual meeting for Individual shareholders holding securities in demat mode.
1. Alternatively shareholder/members may send a request to [email protected] for procuring user id and password for e-voting by providing above mentioned documents.
1. In terms of SEBI circular dated December 9, 2020 on e-Voting facility provided by Listed Companies, Individual shareholders holding securities in demat mode are allowed to vote through their demat account maintained with Depositories and Depository Participants. Shareholders are required to update their mobile number and email ID correctly in their demat account in order to access e-Voting facility.

Instructions for members for e-Voting on the day of the AGM:

1. The procedure for e-Voting on the day of the AGM is same as the instructions mentioned above for remote e-voting.
1. Only those Members/ shareholders, who will be present in the AGM through VC/OAVM facility and have not casted their vote on the Resolutions through remote e-Voting and are otherwise not barred from doing so, shall be eligible to vote through e-Voting system in the AGM.
1. Members who have voted through Remote e-Voting will be eligible to attend the AGM. However, they will not be eligible to vote at the AGM.
1. The details of the person who may be contacted for any grievances connected with the facility for e-Voting on the day of the AGM shall be the same person mentioned for Remote e-voting.

In case you have not registered your e-mail address with the Company/ Depository, please follow below instructions for registration of e-mail address for obtaining Annual Report and / or login details for e-voting:

Physical Holding	Visit the link: https://web.linkintime.co.in/EmailReg/Email_Regi ster.html and follow the registration process as guided therein. The members are requested to provide details such as Name, Folio Number, Certificate number, PAN, mobile number and e mail address.
Demat Holding	Please contact your Depository Participant (DP) and register your e-mail address in your demat account as per the process advised by your DP.

18. Instructions for Members to attend the AGM through VC/OAVM:

I. Member will be provided with a facility to attend the AGM through VC/OAVM through the NSDL e-Voting system. Members may access by following the steps mentioned above for Access to NSDL e-Voting system. After successful login, you can see link of "VC/OAVM link" placed under "Join General meeting" menu against company name. You are requested to click on VC/OAVM link placed under Join General Meeting menu. The link for VC/OAVM will be available in Shareholder/Member login where the EVEN of Company will be displayed. Please note that the members who do not have the User ID and Password for e-Voting or have forgotten the User ID and Password may retrieve the same by following the remote e-Voting instructions mentioned in the notice to avoid last minute rush.
II. Members are encouraged to join the Meeting through Laptops for better experience.
III. Members will be required to allow Camera and use Internet with a good speed to avoid any disturbance during the meeting.
IV. Please note that Participants Connecting from Mobile Devices or Tablets or through Laptop connecting via Mobile Hotspot may experience Audio/ Video loss due to fluctuation in their respective network. It is therefore recommended to use Stable Wi-Fi or LAN Connection to mitigate any kind of aforesaid glitches.
V. Shareholders/Members, who need assistance before or during the AGM, can contact NSDL official Ms. Sarita Mote on Toll free no.: 1800 1020 990 and 1800 22 44 30 or send a request at [email protected]
VI. Members seeking any information with regard to the annual accounts for 2020-21 or any business to be dealt at the AGM, are requested to send an e-mail on [email protected] on or before 11th August, 2021 along with their name, DP ID and Client ID/ folio number, PAN and mobile number. The same will be replied by the Company suitably.
VII. Further, members who would like to express their views or ask questions during the AGM may register themselves as a speaker by sending their request from their registered e-mail address mentioning their name, DP ID and Client ID/ Folio Number, PAN and mobile number at [email protected] on or before 11th August, 2021. Those Members who have registered themselves as a speaker will only be allowed to express their views/ ask questions during the AGM. The Company reserves the right to restrict the number of speakers depending on the availability of time for the AGM.

Date: May 26, 2021

Registered Office: By Order of the Board Naroda Road R. V. Bhimani Ahmedabad-380025 Company Secretary

Item No. 3

Currently, the Non-Executive Directors (other than the Managing Director, Wholetime Directors) are paid commission not exceeding 1% per annum of the net profits of the Company in terms of the resolution passed by the Members at the Annual General Meeting held on 25th September 2020 and as decided by the Board of Directors of the Company. However, in the event, if the Company has no profits or its profits are inadequate in any financial year, the Non-Executive Directors are paid only the sitting fees towards attending the meetings of Board or Committees, as the case may be, and no remuneration is paid which is unfair with regards to the efforts, expertise and the responsibility expected from them in accordance with the Corporate Governance Policies. The Board, therefore, in the view of contributions made by them so far, recognizes the need to suitably remunerate the director(s) of the Company who are neither in the wholetime employment nor managing director(s) irrespective of the profit of the Company.

The Ministry of Corporate Affairs has recently amended Section 197(3) of the Companies Act, 2013 and Schedule V thereto, which permits the payment of following remuneration to a Director who is neither a Wholetime Director, nor a Managing Director of a Company, in the event, if the Company has no profits or its profits are inadequate in any financial year by passing Special or Ordinary Resolution, as the case may be:

S. No.	Where the effective capital (in rupees) is	Limit of yearly remuneration payable shall not exceed (in rupees) in case of other director
1	Negative or less than 5 crores.	12 lakhs
2	5 crores and above but less than 100 crores.	17 lakhs
3	100 crores and above but less than 250 crores.	24 lakhs
4	250 crores and above.	24 Lakhs plus 0.01% of the effective capital in excess of Rs.250 crores

The above limits can be exceeded if the resolution passed by the shareholders is a special resolution.

The Board and/ or Committee of the Board may from time to time determine, every year the amount of commission within the limit of 1% of the net profit and in the event of the Company having no profits or inadequate profits in any financial year during the above mentioned period, as per the limits specified in Part II of Section II (A) of Schedule V to the Act as applicable to the Company but not exceeding Rs. 50,00,000/- (Rupees Fifty Lakhs only) and the same be apportioned amongst the Non-Executive Directors [other than the Managing Director and Wholetime Director(s)] in such manner and up to such amount as the Board and/or Committee of the Board may, from time to time, determine.

Notwithstanding anything to the contrary herein contained, where in any financial year during the above period(s), the Company has no profits or its profits are inadequate, the Company will pay remuneration for a period not exceeding three years as per the limits set out in Section II of Part II of Schedule V of the Companies Act, 2013.

The payment of remuneration by way of commission to Non-Executive Directors will be in addition to the sitting fees payable to them for attending each meeting of the Board/ Committee.

Statement of Information for the members pursuant to Section II of Part II of Schedule V to the Companies Act:

I. GENERAL INFORMATION:

S. No.	Information	Description
1	Nature of industry	Textile Industry
2	Date or expected date of commencement of commercial production	The Company was incorporated on 1st June, 1931 and commercial production thereafter.		commenced
3	In case of new companies, expected date of commencement of activities as per project approved by financial institutions appearing in the prospectus	Not Applicable.
4	Financial performance based on given indicators	Particulars	Standalone	Rs. in Crores Consolidated
(As per audited financial statements for the year ended 31.03.2021)	Sales & Other Income EBIDTA Net Profit	4,593.16 502.12 92.67	5,124.57 478.75 (27.39)
5	Foreign investments or collaborations, if any	Not Applicable.

II. INFORMATION ABOUT THE APPOINTEE:

1. Past remuneration:

2. Recognition or awards: Not Applicable
3. Job profile and his suitability: Not Applicable
4. Remuneration proposed:

The details of the proposed remuneration have already been explained hereinabove.

5. Comparative remuneration profile with respect to industry, size of the company, profile of the position and person (in case of expatriates the relevant details would be with respect to the country of his origin): Not Applicable
6. Pecuniary relationship directly or indirectly with the company, or relationship with the managerial personnel, if any:

The non-executive directors do not have any pecuniary relationship with the Company except the remuneration and the sitting fees being paid to them. They do not have any pecuniary relationship with managerial personnel of the company.

III. OTHER INFORMATION:

S. No.	Information		Description
1	Reasons of loss or inadequate profits	:	Not Applicable
2	Steps taken or proposed to be taken for improvement	:	Not Applicable
3	Expected increase in productivity and profits in measurable terms	:	Not Applicable

The Board recommends the Resolution set out at Item No. 3 of the accompanying Notice as Special Resolution for the approval of the Members.

Item No. 4

Section 42 of the Companies Act, 2013 read with the Companies (Prospectus and Allotment of Securities) Rules, 2014 provides that a company cannot issue securities on a private placement basis unless the proposed offer of securities or invitation to subscribe to securities has been previously approved by the shareholders of such company, by a special resolution for each offer or invitation, and further provides that in case of an offer or invitation for secured/ unsecured non-convertible redeemable debentures (NCDs), it shall be sufficient if the company passes a special resolution once a year for all the offers and invitations for such NCDs to be made during the said year.

In order to meet the financial needs of the Company, the Company may make an offer of NCDs or invite subscription to NCDs on private placement basis, in one or more tranches, during the period of 1 (one) year from the date of passing of the special resolution by the members, for an aggregate amount not exceeding Rs 200 crores (Rupees Two hundred crores). It is proposed that the Board which term shall be deemed to include any Committee of Directors which the Board may have constituted/ will constitute to exercise any or all of its powers including the powers conferred by this resolution, be authorized to issue NCDs within the aforesaid limits, on such terms and conditions as it may deem fit.

The Board recommends the resolution at Item No. 4 for your approval. None of the Directors or any Key Managerial Personnel of the Company or any of their relatives is concerned or interested, financially or otherwise, in the resolution set out at Item No. 4.

Item No. 5 & 6

Stock Options are an effective instrument to attract, reward and retain the talented and key Employees in the Company. They also create a sense of ownership and participation amongst the employees of the Company and achieve sustained growth of the Company by creation of shareholder value by aligning the interests of the employees with that of the Organization.

The Board of Directors, keeping in view of the above-mentioned objectives, at their meeting held on 26th May 2021 formulated Arvind-Employee Stock Option Scheme – 2021 ("Arvind ESOS 2021") for the present and/or future permanent employees of the Company including holding company and subsidiary companies of the company (whether now or hereafter existing, whether incorporated in India or overseas as may be from time to time be allowed under the prevailing laws, rules and regulations and / or any amendments thereto from time to time) (hereinafter referred to as 'employees' or 'said employees') in accordance with the applicable laws.

In terms of the provisions of Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 and Section 62(1) (b) and other applicable provisions of the Companies Act, 2013 and rules framed thereunder, issue of equity shares to the employees requires an approval of the existing Members by way of a Special Resolution and accordingly, the said Special Resolution seeks your approval for the further issue of Equity Shares under the ARVIND ESOS 2021, to the employees of the Company, as may be determined by the Nomination and Remuneration Committee.

The Salient features of the ARVIND ESOS 2021 as per Regulation 6(2) of Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 are as follows:

a) Brief description of the Scheme

The Company recognizes and appreciates the critical role played by the employees of the Company in bringing about growth of the organization. It strongly feels that the value created by them should be shared with them. To promote the culture of employee ownership in the Company, approval of the shareholders is being sought for issue of stock options to the employees of the Company. The purpose of the Scheme is:

Creation of wealth
Retention of critical Employees
Increase the performance of Employees

The Scheme shall be administered by the Board/Committee.

b) The total number of options to be granted

The total number of options that may, in the aggregate, be issued would be such number of options which shall entitle the option holders to acquire in one or more tranches upto 1,00,00,000 (One Crore only) equity shares of Rs. 10/- each (or such other adjusted figure for any bonus, stock splits or consolidations or other re-organisation of the capital structure of the Company as may be applicable from time to time). The Employees are not required to pay any amount at the time of grants made to them.

Vested options lapsed due to non-exercise and/or unvested options that get cancelled due to resignation of Option grantees or otherwise, would be available for being re-granted at a future date. The Board is authorized to re-grant such lapsed / cancelled options as per the provisions of ESOS - 2021.

The Board/Committee shall in accordance with the Applicable Laws determine the procedure for making a fair and reasonable adjustment to the ESOPs entitlement of an Option Grantee in case of a stock split, stock consolidation, rights issue, bonus issue, merger, demerger, amalgamation, sale of division and any other form of corporate restructuring, if any.

If the Company issues bonus or rights shares, the Option Grantee will not be eligible for the bonus or rights shares in the capacity of an Option Grantee, except that the entitlement to the number of options and the Exercise Price will be adjusted, as determined by the Board/Committee. Only if the employee stock options are vested and exercised and the Option Grantee is a valid holder of the shares of the Company, the Option Grantee would be entitled

for bonus or rights options as Option holder of the Company. Accordingly, if any additional options/shares are issued by the Company to the option grantees for making such fair and reasonable adjustment, the above ceiling of 1,00,00,000 (One Crore only) shall be deemed to be increased to the extent of such additional options/shares issued.

c) Identification of classes of employees entitled to participate and be beneficiaries in the Scheme

The following classes of employees of the Company, Holding Company and the Company's Subsidiaries (whether now or hereafter existing, whether incorporated in India or overseas as may be from time to time be allowed under the prevailing laws, rules and regulations and / or any amendments thereto from time to time), depending upon the eligibility criteria determined by the Board, are entitled to participate in ESOS - 2021 (the "Eligible Employees"):

a) a permanent employee of the Company who has been working in India or outside India; or
b) a director of the Company, whether a whole time director or not but excluding an independent director; or
c) an employee as defined in clauses (a) or (b) of a subsidiary, whether in India or outside India, or of a Holding Company of the company; or
d) such other persons as may from time to time be allowed to be eligible for the benefits of the stock options under applicable laws and regulations prevailing from time to time

but does not include-

i. an employee who is a promoter or a person belonging to the promoter group; or
ii. a director who either himself or through his relative or through any body corporate, directly or indirectly, holds more than ten percent of the outstanding equity shares of the Company;

d) Requirements of vesting and period of vesting

The options granted under ESOS - 2021 shall vest so long as the employee continues to be in the employment of the Company or its Holding or its subsidiary subject to maximum period of 5 (five) years, as the case may be, as per applicable laws. The Board/Committee may, at its discretion, lay down certain performance metrics on the achievement of which such options would vest, the detailed terms and conditions relating to such vesting, and the proportion in which options granted would vest subject to the minimum vesting period of 1 (one) year. The vesting may occur in one or more tranches, subject to the terms and conditions of vesting, as stipulated in the ESOS - 2021.

The options which vested may be cancelled in the following events:

i. Expiry of exercise period
ii. Resignation/Termination due to misconduct / breach of company policies, etc. and
iii Abandonment / Long Leave.

e) Maximum period within which the options shall be vested

The maximum vesting period may extend up to 5 (five) years from the date of grant of options.

f) Exercise price or pricing formula

Exercise Price means the price, if any, payable by the Employee for exercising the Vested Option granted to him in pursuance of the Scheme.

The exercise price shall be the Market Price for options to be granted under this scheme. However, it can be such other price as may be decided by the Board/Committee for grant of options not exceeding 0.5% of the paid-up equity shares as on 31st March 2021 i.e. not exceeding 12,94,620 shares or such other price as may be required to be arrived in accordance with the applicable laws.

Further, Board/Committee shall grant such options not exceeding 0.5% of paid up capital as mentioned above to employees in lieu of cash compensation based on achievement of key performance indicators and successful achievement of key performance criteria and such options shall not exceed 0.15% of the paid-up equity shares as on 31st March 2021 i.e. not exceeding 3,88,386 shares to any one employee. The Company sets the performance criteria for its employees on annual basis based on the prevailing opportunities and challenges faced by the company. Some of the key criteria that company has used for performance evaluation in recent past are Sales Growth, profitability, free cash flow generation and returns on invested capital.

Explanation - Market Price means the latest available closing price on a recognised stock exchange on which the shares of the company are listed on the date immediately prior to the relevant date and if such shares are listed on more than one stock exchange, then the closing price on the stock exchange having higher trading volume shall be considered as the market price.

g) Exercise period and process of exercise

a) Employees shall be entitled to exercise options in one or more traches within such period as may be prescribed by the Board, which period shall not be less than one year from the date of grant and shall not exceed a period of three years from the date of respective vesting of options.
b) In the event of an Employee being transferred between the Company, its Subsidiaries or its Holding Company, and at instance of or with consent of the Company, the Option Grantee will continue to hold all the Vested Options and can Exercise them anytime within the Exercise Period. All Unvested Options shall vest as per the Vesting schedule.

The process and conditions subject to which options can be exercised shall be laid down by the Board of the Company.

h) Appraisal Process for determining the eligibility of Employees to the Scheme.

The appraisal process for determining the eligibility of the employees will be specified by the Board/Committee, and will be based on criteria such as criticality of the role, designation, length of service, past performance record, future potential of the employee and / or such other criteria that may be determined by the Board, at its sole discretion.

i) Maximum number of options to be issued per Employee and in the aggregate

The number of Options that may be granted to any specific employee under ESOS-2021 shall not exceed the number of Shares equivalent to 1% of the Issued Share Capital (excluding outstanding warrants and conversions) of the Company in aggregate in any one year unless prior specific approval from members of the Company through a special resolution to this effect is obtained.

j) Maximum Quantum of benefits to be provided per employee

The maximum quantum of benefits underlying the options issued to an Eligible Employee shall depend upon the market price of the equity shares of the Company, as on the date of sale of such equity shares.

k) Whether the scheme is to be implemented and administered directly by the Company or through a trust

The Scheme will be implemented directly by the Company under the guidance of the Nomination and Remuneration Committee of the Board.

l) Whether scheme involves new issue of shares by the Company or Secondary acquisition by the trust

The Scheme will involve only new issue of shares by the Company.

m) The amount of loan to be provided for implementation of the scheme(s) by the company to the trust, its tenure, utilization, repayment terms, etc.;

Not applicable since the Scheme is not implemented through Trust.

n) Maximum percentage of secondary acquisition (subject to limits specified under the regulations) that can be made by the trust for the purposes of the scheme(s);

Not applicable since the Scheme is not implemented through Trust.

o) Disclosure and accounting policies

The Company shall comply with the disclosure and the accounting policies prescribed as per the Securities and Exchange Board of India (Share Based Employee Benefit) Regulations, 2014 (as amended from time to time) and the guidelines issued by Institute of Chartered Accountants of India from time to time.

p) Method of Valuation

To calculate the employee compensation cost, the Company shall use Fair Value Method or any other applicable accounting guidelines for valuation of the options granted.

q) Certificate from auditors

The Board of Directors shall at each annual general meeting place before the shareholders a certificate from the auditors of the company that the scheme(s) has been implemented in accordance with the prescribed regulations and in accordance with the resolution of the company.

r) Other terms

The employees to whom options have been granted (and which have not been exercised by them) shall have right, without giving any reason/s, to surrender such options, whether vested or otherwise and such surrendered options shall be added back to the number of Options that are pending to be granted.

The Board or Nomination and Remuneration Committee shall have the absolute authority to vary, modify or alter the terms of the Scheme in accordance with the regulations and guidelines as prescribed by the Securities and Exchange Board of India or regulations that may be issued by any appropriate authority, from time to time, unless such variation, modification or alteration is detrimental to the interest of the Option Grantees.

To bring in desirable performance matrices and eligibility criterion into ESOP Scheme of the Company, the Board or Nomination and Remuneration Committee will not make any new grants in the existing Employee Stock Option Scheme 2008 of the Company once the shareholders' approval is received for institution of the new Employee Stock Option Scheme 2021 and all new grants will be made in the new scheme.

The Board or Nomination and Remuneration Committee may, if it deems necessary, modify, change, vary, amend, suspend or terminate the ESOS - 2021, subject to compliance with the Applicable Laws and Regulations.

As the Scheme would entail further shares to be offered to persons other than existing Members of the Company, consent of the members is sought pursuant to the provisions of section 42 and 62 (1) (b) and all other applicable provisions, if any, of the Companies Act, 2013 and as per the requirement of Clause 6 of the SEBI ESOS Regulations.

None of the Directors and Key Managerial Personnel of the Company including their relatives are interested or concerned in the resolution No. 5 and 6, except to the extent of their shareholding entitlements, if any, under the ESOS.

Your Directors recommend the Resolution set out in Item No. 5 & 6 of the Notice for adoption by the Shareholders as Special Resolution/s.

Item No. 7

The Board, on the recommendation of the Audit Committee, has approved the appointment and remuneration of M/s. Kiran J. Mehta & Co., Cost Accountants, Ahmedabad as the Cost Auditors to conduct the audit of the cost records of the Company for the financial year ending March 31, 2021 at a remuneration of Rs.3.75 lakhs plus applicable taxes and out of pocket expenses.

In accordance with the provisions of Section 148(3) of the Act read with The Companies (Audit and Auditors) Rules, 2014, the remuneration payable to the Cost Auditors has to be ratified by the shareholders of the Company. Accordingly, consent of the members is sought for passing an Ordinary Resolution as set out at Item No. 7 of the Notice for ratification of the remuneration payable to the Cost Auditors for the financial year ending March 31, 2022.

The Board of Directors recommends the above resolution for your approval.

None of the Directors or any key managerial personnel or any relative of any of the Directors of the Company or the relatives of any key managerial personnel is, in anyway, concerned or interested in the above resolution.

ANNEXURE TO ITEM NO 2 OF THE NOTICE

Details of Director seeking appointment and reappointment at the forthcoming Annual General Meeting

[Pursuant to Regulation 36(3) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Secretarial Standard on General Meetings ("SS-2"), issued by the Institute of Company Secretaries of India]

Name of the Director	Mr. Jayesh Shah
Director Identification Number (DIN)	00008349
Date of Birth	25th May 1960
Date of first appointment on the Board	20th November 2002
Qualifications	• Commerce Graduate, Gujarat University • Chartered Accountant, ICAI
Expertise in specific functional area	Wide experience in Finance, Accounts, MIS, Merger, Acquisition, Expansion, Diversification, Project funding, Euro-issue and Financial Restructuring
Brief Profile & Experience	He started his career in Garment division of the Lalbhai Group and then textile division and also looked after all the financial aspects of the group companies, viz., Textiles, branded garments, electronics and telecom. He was also actively involved in merger, acquisition, expansion, diversification, project funding and euro issue of the Company. Being a dynamic professional, he has always been exploring new business opportunities and challenges. He successfully undertook financial restructuring of the Company during the period 2000 to 2002. He has also served on the Board of e-infochips Limited. Mr. Shah is a Member of the Governing Council of Ahmedabad Management Association. Mr. Shah is Associate member of ICAI and a Commerce Graduate from Gujarat University.
Number of Shares held in the Company	4,97,600
Details of remuneration sought to be paid	Refer report on Corporate Governance
Remuneration last drawn	Refer report on Corporate Governance
Number of Board Meetings attended during the year	4 out of 4
List of the Directorships held in Other Companies	1. Arvind PD Composites Private Limited 2. Arvind Goodhill Suit Manufacturing private Limited 3. Value Fashion Retail Limited 4. Firenze Properties and Investments Private Limited 5. Arvind Internet Limited 6. Aura Securities Private Limited 7. Amplus Capital Advisors Private Limited 8. Aura Business Enterprise Private Limited 9. Centerac Emarket Places Private Limited 10. Arvind Foundation 11. Arvind Worldwide Inc. USA 12. Arvind Textile Mills Limited, Bangladesh

Name of the Director	Mr. Jayesh Shah
Membership/ Chairmanship of the Committees of other Companies in which position of Director is held	NA
Relationship with other Directors, Manager and other Key Managerial Personnel of the Company	NA

DIRECTORS' REPORT

To the Members,

Your Directors are pleased to present the Annual Report along with the Audited Financial Statements for the period from 1st April 2020 to 31st March 2021.

1. FINANCIAL RESULTS

Highlights of Financial Results for the year are as under:

` in crores
	Standalone		Consolidated
Particulars	2020-2021	2019-2020	2020-2021	2019-2020
Turnover & Operating Income	4528.54	6705.31	5072.98	7369.00
Profit before Finance Costs, Depreciation and Amortisation Expenses,	529.05	773.57	514.20	747.63
Extraordinary Items & Tax Expenses
Less : Finance costs	209.65	224.10	224.51	236.89
Profit before Depreciation and Amortisation Expenses, Extraordinary	319.40	549.47	229.05	510.74
Items & Tax Expenses
Less : Depreciation and Amortisation Expenses	236.43	240.54	285.15	290.45
Profit before Share of Profit of a Joint Venture, Exceptional Items and	82.97	308.93	4.54	220.29
Tax Expenses
Less : Exceptional Items	26.93	58.82	35.89	50.21
Add : Share of profit/(loss) of Joint Ventures	NIL	NIL	0.44	(2.29)
Profit Before Tax	56.04	250.11	(30.91)	167.79
Current Tax	3.40	48.71	11.20	64.67
(Excess)/Short Provision of Earlier Years	(4.83)	11.95	(6.45)	12.01
Deferred Tax	(35.20)	18.07	(8.27)	(0.99)
Profit/(Loss) for the year	92.67	171.38	(27.39)	92.10

2. COMPANY'S PERFORMANCE

FY2021 was a difficult year for businesses world-wide. The global economy contracted by 3.3% in 2020 as estimated by the IMF. This was despite the swift and extra-ordinary policy support which governments around the world extended. 2021 is expected to see a global GDP growth of 6% on the previous year's reduced base, and 2022 will likely grow by another 4.4%. The outlook forward is likely to be defined by the ability of countries and regions to respond to the pandemic challenge.

US is seeing a robust recovery as real GDP grew by 6.4% on an annualized basis in first quarter of 2021, driven by consumer spending on goods, business investment in equipment, and Federal government purchases of non-defence items. In the Eurozone and the United Kingdom, activity is recovering but expected to remain below end-of-2019 levels into 2022. China has been the most successful among major economies to contain the pandemic, and is likely to continue seeing robust growth. In general, tourism-based economies, and relatively poor countries will continue to be severely challenged in their recovery resulting in increasing gap between the economies.

The Indian economy contracted by 7% during the financial year ending March 2021. The economy which had fell off the cliff in Q1, started to show V-shaped recovery primarily powered by government expenditure and exports. 15+% contraction in the first half was offset by ~3% growth in the second half. Consumer demand also showed spikes in limited pockets in specific time windows. Overall, the Indian apparel market is estimated to have declined by 27% during 2020. Given the contagious and lethal second wave of the pandemic, FY22 estimates have been revised down to sub-10% levels by most economists and agencies.

In this context, your Company delivered an overall topline of 5,073 crores which was 31% lower compared to previous year. The year was marked by gradual improvement in capacity utilization and volume recovery after the plunge in April 2020. Textiles recovered slowly as exports markets started to recover in Q2, and domestic recovery started in Q3. Advanced Materials demand remained firm, and the business was impacted only on account of supply disruptions in Q1. Overall EBITDA reduced from 748 crores in the previous year, to 514 crores. Consolidate PBT before exceptional items was down to 5 crores from last year level of 220 crores. `

A more detailed analysis and commentary is available in the Management Discussion and Analysis section of this report.

3. DIVIDEND

Keeping in mind the need to conserve resources, your Directors do not recommend any dividend on Equity Shares for the year.

In terms of the provisions of Regulation 43A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, your Company has formulated a Dividend Distribution Policy and the same is available on the Company's Website at

https://www.arvind.com/sites/default/files/field_policy_file/DividendDistributionPolicy.pdf

4. TRANSFER TO RESERVES

During the year under review, the Company has not transferred any amount to reserves.

5. SHARE CAPITAL

The authorised share capital of the Company as on 31st March 2021 was 674.50 crores divided into 57.45 crores equity shares of 10 each and 1 crore preference shares of Rs. 100 each.

During the year under review the Company has allotted 1,57,000 Equity Shares of 10 each to the eligible employees pursuant to the exercise of stock options granted in terms of the Employees Stock Option Scheme 2008 (ESOS) of the Company. Consequently, the paid up Equity Share Capital of the Company stood at 258.92 crores consisting of 25,89,24,069 equity shares of 10 each.

During the year under review, the Company has not issued shares with differential voting rights and sweat equity shares.

6. EMPLOYEE STOCK OPTION SCHEME (ESOS)

The Company has instituted the Employees Stock Option Scheme (ESOS) to grant equity based incentives to certain eligible employees and directors of the Company and its subsidiary companies.

Disclosures in compliance with Section 62 of the Companies Act, 2013 and Rule 12 of Companies (Share Capital and Debentures) Rules, 2014 and the Securities and Exchange Board of India (Share based Employee Benefits) Regulations, 2014 are set out in ''Annexure - A'' to this report.

7. DISCLOSURE UNDER SECTION 67(3)(C) OF THE COMPANIES ACT, 2013

No disclosure is required under section 67(3)(c) of the Companies Act, 2013 read with Rule 16(4) of Companies (Share Capital and Debentures) Rules, 2014, in respect of voting rights not exercised directly by the employees of the Company as the provisions of the said section are not applicable.

8. FINANCE

The Company has repaid the installments of Term Loans amounting to 520 crores during the current year. The Company has also made fresh long term borrowings of 632 crores for funding capital expenditure and other requirements. Long Term Debt of the Company stands to 1313 crores as on 31st March, 2021. `

9. FIXED DEPOSITS

During the year under review, your Company has not accepted or renewed any Deposit within the meaning of Section 73 of the Companies Act, 2013 and the rules made thereunder.

10. NON-CONVERTIBLE DEBENTURES

As on 31st March 2021, 8.5% - 750 Rated, Listed, Secured, Redeemable, Non-Convertible Debentures (NCDs) of the face value of Rs. 10,00,000/- each, for cash at par, aggregating Rs. 75 crores were outstanding, issued on private placement basis and listed on the Wholesale Debt Market Segment of BSE Limited.

11. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS UNDER SECTION 186

Details of Loans, Guarantees and Investments covered under the provisions of Section 186 of the Companies Act, 2013 are given in the notes to the Financial Statements.

12. CONSOLIDATED FINANCIAL STATEMENTS

The Consolidated Financial Statements of the Company are prepared in accordance with relevant Indian Accounting Standards issued by the Institute of Chartered Accountants of India and form part of this Annual Report.

13. CORPORATE SOCIAL RESPONSIBILITY INITIATIVES

Arvind Limited through its CSR policy aims to work for social, economic, educational, infrastructural, environmental, health, inner wellbeing and cultural advancement of the people and thereby positively impact their quality of life. Our CSR programs are in the realm of education, rural transformation, livelihood promotion, art and heritage, women empowerment and inner wellbeing. The projects and programs are in accordance to the thematic areas as defined in Schedule VII of the Companies Act, 2013. The development initiatives are being carried out by company promoted organizations – Strategic Help Alliance for Relief to Distressed Areas (SHARDA) Trust, Narottam Lalbhai Rural Development Fund (NLRDF) and Arvind Foundation (AF) and other partner Civil Society Organizations. The organizations have formed synergistic partnerships to enhance the quality of deliverables and increase the reach of the programs.

The company has defined three broader themes to bring larger focus in our CSR initiatives. The broad three thematic areas are Educational Advancement, Rural Advancement and Cultural Advancement. All our initiatives will broadly be falling under the given three umbrella without limiting the purpose, scope and flexibility of CSR initiatives.

The specific programs undertaken during the year and a brief is given in following paragraphs:

Education: Under the broad theme of Educational Advancement, Gyanda is an ongoing supplementary education program designed for primary, secondary and higher secondary school going children. Carried out by SHARDA Trust, our initiative prevents drop out and helps students complete their basic education from standard V to XII and ahead. Gyanda is an ongoing programme that focuses on improving academic performance and overall development of the students. This is done through a 8-12 year's handholding process that aspire to help students become last generation in poverty. Gyanda is operational since 2006-07. More than 5,000 students from lower socio- economic strata have benefitted so far. At present, Gyanda has enrolment of more than 1,100 students.

Leadership for transformation program: To enhance the effectiveness of the Gyanda initiative and support its planned expansion, we have initiated a 2 year long learning and development program for the Gyanda team (both educators and administrators). This program has been designed and delivered by the Riverside Learning Centre Ahmedabad. The six pillars of the program are Curriculum, Parent partnership, Leadership, Personal and professional development, Administration and Community. About 30 participants are undergoing this program.

Student Mentorship Program: Working continuously with the students for more than 13 years now, a holistic education program was started to prepare students for living life purposefully and joyfully for our senior students. The program aimed to help them see their future life and created a personal and aspirational profile for each participant. The program helped them to get skills to shape up and attain higher personal and professional goals. At present, 110 students from standard 11 and above are learning in this initiative.

Rural Transformation: Under the broad theme of Rural Advancement, the Arvind Rural Transformation Initiative (ARTI) is a combination of long term integrated programs focused in defined geographies in Ahmedabad, Gandhinagar and Narmada districts of Gujarat at present. It will be undertaken in other geographies in future. Improving the education environment by upgrading the infrastructure in village schools, increasing enrolment by multiple learning and development programs for the students and support to parents are initiatives aimed at Educational Advancement. A program to improve farm productivity has been started and multiple trainings and exposure visits for capacity building of farmers are organised at for different villages and village groups. Also, more than 20 health camps were organised across 9 villages which helped us to screen more than 1,400 people for various health conditions. These programs are result of a rapid rural appraisal that was conducted by the team. We have been working with the villages around our factory at Khatraj in Gandhinagar now for over two years. Our experience highlighted that not having a community infrastructure was a major lacuna in expansion of the programme. Hence, we propose to set up a multipurpose community centre and undertake related activities as part of ongoing ARTI. This will help us bring width, depth and integration to our program ARTI.

Livelihood Promotion through tribal home stay project: As part of our Rural Transformation program, we carried out a Home Stay Project in villages in Garudeshwar Taluka in Narmada District. With the aim to increase the income of tribal families, quality home stay facilities were created for tourist at rural homes. The Taluka has the advantage of hosting the World's tallest statue – The Statue of Unity which is a major tourist destination there and hence a huge potential of additional alternative income for the native tribal families.

Inner Well Being: As part of our rural transformation strategy, Arvind is carrying out an Inner Wellbeing Program in rural Gujarat and Rajasthan since last four years. This is result of our conviction that the physical and social developments are meaningful only if people are also well from within. Heartfulness Meditation programs are being conducted in a planned and structured manner. This program is based on the Sahaj Marg system of Raja Yoga meditation. In 2019-20, we conducted sessions in close to 200 places and reached out to around 15,000 people.

Women empowerment (CSR in spirit): We are working towards empowerment and inclusive growth of women belonging to the tribal areas of Gujarat. The project was started in the year 2014 and has enrolled more than 900 women till date. We work with our civil society partners to help women join this program, acquire industry specific vocational skills (Apparel Manufacturing), get employed in Arvind's manufacturing units and stay in company managed dormitories. Stay in dormitories create a unique opportunity of upgrading their qualification and skills in their free time. Apart from employment and earning, the women are enrolled in Babasaheb Ambedkar Open University to further their educational qualification, acquire different life skills and nurture aspiration to move from blue collar to white collar work. We are working on expansion of this program to different geographies.

Promotion of Indology: As part of our commitment to support Cultural Advancement, through this ongoing program, the company has been supporting Lalbhai Dalpatbhai Bhartiya Sanskriti Vidyamandir (LDBSV) towards its efforts to preserve India's rich heritage. The project named Promotion of Indology is creating a comprehensive, research-oriented digital repository of paper/palm-leaf manuscripts housed in Lalbhai Dalpatbhai Institute of Indology (LDII). These digital grabs will initially be accessible on low resolution digital media (hard disks, compact disks), leaving open the possibility of uploading the material onto a website. High resolution versions of the material will be made available as and when appropriate. Around 32 lacs pages of such Manuscripts are available at LDII.

Indigo Museum: As part of our commitment to support Cultural Advancement, the company has approved a unique plan to set up an Indigo Museum. The purpose of undertaking the setting up of an Indigo Museum is to capture the story of indigo and associated materials to create and capture broader narratives around the story of the colour, clothe, trade, revolutionary struggles, design thinking and artistic collaborations. India's cultural connection to Indigo is unique. India was the Indigo capital of the world. Indigo owes its name to the country – "Indikon" in Greek which means "from India". Archaeologists have recovered different varieties of indigo seeds, and even a cloth dyed blue from the ruins of Harappa and Mohenjo-Daro. Greeks and Romans considered it a luxury product and used it sparingly in paints, medicines and cosmetics, in the ancient times. Indigo was often referred to as Blue Gold as it was an ideal trading commodity - high value, compact and long lasting. This is our way to pay respect to our heritage.

Working with Artisans: The Company support to the project titled "Walking Hand-in-Hand - Taking Unnamed Artisans to the World Stage" continued in second year. The project is being implemented by CDS Art Foundation. The project supports such artisans who work on exquisite textiles but largely remain unnoticed and unsupported. The initiative identify, engage, encourage and support such artisans who have unique ability and potential to go far. These are Masters who are not only selfemployed but are employment providers too in their community. The initiative takes these Artisans at different forums and ensures that their craft is displayed, recognised and honoured. Their excellence is deeply appreciated and celebrated amongst the community of fellow artisans nationally which gives them strength and energy to continue working on their craft.

The Annual Report on CSR Activities in prescribed format is enclosed as "Annexure - B".

14. HUMAN RESOURCES

The Company believes that Human Resources shape the success of its business vision. The company is committed to investing in hiring the right talent, sustainably engaging and developing them, retaining and rewarding them to deliver organizational results and growth.

An important focus area for the organization has been to respond

to trends shaping the future of work that make the company agile, productive and help improve HR systems, processes and enhance employee experience.

The company has invested efforts in bringing effectiveness in hiring and creating an employer brand, creating internal mobility, reorganizing structures in line with business plans and performance and establishing the right rewards and recognition. Adoption of digital tools in our new way of working has ensured that our employees are equipped to work with these through the right skills. While doing so, we have been cognizant of understanding what motivates and engages our people and how they perceive their work environment. Therefore, we encourage open and regular dialogue between managers and their team members, conduct surveys and offer hand holding support which ensures our people feel comfortable to speak up, raise concerns and are empowered to initiate improvements.

Our approach to performance management is a holistic one wherein, while holding people accountable, we look at continuous development and create opportunities for them to excel in new and or larger roles. Performance dialogues create opportunities for regular meaningful feedback. This approach is directly linked to our compensation framework and promotion process. We also offer a wide range of benefits to our employees.

To ensure we develop future leaders, we provide a number of opportunities to foster management and leadership skills. The purpose is to equip our people with the necessary capabilities to lead the organization through change, develop their teams, manage performance and ensure business success in line with the organizational strategy. On learning our focus shall continue to be towards digitalization of learning and introduction of various elearning courses on managerial & functional competencies.

15. RISK MANAGEMENT

The Company has a robust Enterprise Risk Management framework which enables it to take certain risks to remain competitive and achieve higher growth and at the same time mitigate other risks to maintain sustainable results.

Under the framework, the Company has laid down a Risk Management Policy which defines the process for identification of risks, its assessment, mitigation measures, monitoring and reporting. While the Company, through its employees and Executive Management, continuously assess the identified Risks, the Risk Management Committee reviews the identified Risks and its mitigation measures annually.

The Company has identified 19 Risks - 6 Strategic Risks, 11 Operational Risks & 2 Regulatory Risks. Key Strategic Risks include demand destruction, changing customer preference and supply chain disruption due to pandemic, reputational risk, succession planning, business continuity planning & geographical concentration. Key Operating Risks include health & safety, cyber security, customers' credit risk, fluctuating forex rates and cotton prices, IT system breakdown, labour unrest, fire & safety, concentration of business with certain customers and sustainability. Regulatory Risks include changes in trade agreements, international trade disputes and regulatory compliances.

16. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has an Internal Control System, commensurate with the size, scale and complexity of its operations. The Company has an Internal Audit Department with adequate experience and expertise in internal controls, operating system and procedures. In discharging their role and responsibilities, the department also engages external audit firms, wherever deemed necessary.

The Internal Audit Department reviews the adequacy of internal control system in the Company, its compliance with operating systems and laid down policies and procedures. Based on the report of internal audit function, process owners undertake corrective actions in their respective areas and thereby strengthen the controls. Significant audit observations and corrective actions thereon are presented to the Audit Committee of the Board.

17. VIGIL MECHANISM/ WHISTLE BLOWER POLICY

The Company has a vigil mechanism named Whistle Blower Policy to deal with instances of fraud and mismanagement, if any. The details of the Whistle Blower Policy are explained in the Corporate Governance Report and also posted on the website of the Company at

https://www.arvind.com/sites/default/files/field_policy_file/Whistle%20Blower%20Policy_n.pdf

18. SUBSIDIARIES, ASSOCIATES AND JOINT VENTURE COMPANIES

As on 31st March 2021, the Company has 23 subsidiary companies (Direct or Indirect) and 5 joint venture/ associate companies.

Pursuant to the provisions of Section 129(3) of the Companies Act, 2013 read with the Companies (Accounts) Rules, 2014, a statement containing salient features of financial statements of subsidiaries, associates and joint venture companies in Form AOC-1 is attached to the Financial Statements. The separate audited financial statements in respect of each of the subsidiary shall be kept open for inspection at the Registered Office of the Company. The Company will also make available these documents upon request by any Member of the Company interested in obtaining the same. The separate audited financial statements in respect of each of the subsidiary are also available on the website of the Company at www.arvind.com.

The Company has framed a policy for determining material subsidiaries, which has been uploaded on Company's website at https://www.arvind.com/sites/default/files/field_policy_file/Policy%20on%20Material%20Subsidiaries.pdf

19. DIRECTORS AND KEY MANAGERIAL PERSONNEL

The Board of Directors consists of 9 (nine) members, of which 5 (five) are Independent Directors. The Board also comprises of one woman Independent Director.

As per the provisions of Section 152(6) of the Act, Mr. Jayesh Shah (holding DIN 00008349) shall retire by rotation at the ensuing Annual General Meeting and being eligible, offered himself for reappointment as the Director of the Company.

As per the provisions of Section 203 of the Companies Act, 2013, Mr. Sanjay Lalbhai - Chairman and Managing Director, Mr. Jayesh Shah - Director and Group Chief Financial Officer and Mr. R.V. Bhimani - Company Secretary; are the Key Managerial Personnels of the Company.

20. FORMAL ANNUAL EVALUATION

Pursuant to the provisions of the Companies Act, 2013 and Regulation 17(10) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Board has carried out an annual evaluation of its own performance as well as that of its Committees and Individual Directors. The manner in which the evaluation has been carried out has been explained in the Corporate Governance Report.

21. APPOINTMENT AND REMUNERATION POLICY

The Board has, on the recommendation of the Nomination and Remuneration Committee, framed a policy for selection and appointment of Directors, Key Managerial Personnel and Senior Management and their remuneration. The same is available on the website of the Company at www.arvind.com.

22. FAMILIARIZATION PROGRAM FOR THE INDEPENDENT DIRECTORS

In compliance with the requirements of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company has put in place a familiarization programme for the Independent Directors to familiarize them with their role, rights and responsibility as Directors, the working of the Company, nature of the industry in which the Company operates, business model etc. The details of the familiarization programme are explained in the Corporate Governance Report and also available on the Company's website at

https://www.arvind.com/sites/default/files/field_policy_file/Familiarisation%20Programme%20for%20IDs.pdf

23. DECLARATION OF INDEPENDENCE

The Company has received declarations from all the Independent Directors of the Company confirming that they meet the criteria of independence as prescribed under Section 149(6) of the Companies Act, 2013 and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and they have complied with the Code for Independent Directors as prescribed in Schedule IV to the Act.

24. BOARD AND COMMITTEE MEETINGS

A calendar of Meetings is prepared and circulated in advance to the Directors.

During the year under review, 4 meetings of the Board were held. The details of the Board and Committee meetings are provided in the Corporate Governance Report forming part of this Report.

25. DIRECTORS' RESPONSIBILITY STATEMENT

Pursuant to Section 134(5) of the Companies Act, 2013, the Board of Directors, to the best of their knowledge and ability, confirm that:

a. in preparation of the annual accounts for the financial year ended March 31, 2021 the applicable accounting standards have been followed along with proper explanation relating to material departures, if any;
b. they have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit and loss of the Company for that period;
c. they have taken proper and sufficient care towards the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
d. they have prepared the annual accounts on a going concern basis;
e. they have laid down internal financial controls, which are adequate and are operating effectively;
f. they have devised proper systems to ensure compliance with the provisions of all applicable laws and such systems are adequate and operating effectively.

26. RELATED PARTY TRANSACTIONS

All the related party transactions are entered on arm's length basis, in the ordinary course of business and are in compliance with the applicable provisions of the Companies Act, 2013 and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. There are no materially significant related party transactions made by the Company with Promoters, Directors, Key Managerial Personnel etc. which may have potential conflict with the interest of the Company at large or which warrants the approval of the shareholders. Accordingly, no transactions are being reported in Form AOC-2 in terms of Section 134 of the Act read with Rule 8 of the Companies (Accounts) Rules, 2014. However, the details of the transactions with Related Parties are provided in the Company's financial statements in accordance with the Accounting Standards.

All Related Party Transactions are presented to the Audit Committee and the Board. Omnibus approval is obtained for the transactions which are foreseen and repetitive in nature. A statement of all related party transactions is presented before the Audit Committee on a quarterly basis, specifying the nature, value and terms and conditions of the transactions.

The Policy on Related Party Transactions as approved by the Board is available on Company's website at https://www.arvind.com/sites/default/files/field_policy_file/Related%20Party%20Transactions%20Policy%202020.pdf

27. SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS

There are no significant material orders passed by the Regulators/ Courts which would impact the going concern status of the Company and its future operations.

28. AUDITORS

• Statutory Auditors

Deloitte Haskins & Sells LLP, Chartered Accountants, (ICAI Firm Registration No. 117366W/W-100018) were appointed as Statutory Auditors of your Company at the Annual General Meeting held on 4th August 2017 for a term of five consecutive years. The Report given by the Auditors on the financial statements of the Company is part of the Annual Report. There has been no qualification, reservation, adverse remark or disclaimer given by the Auditors in their Report.

• Cost Auditors

Kiran J. Mehta & Co., Cost Accountants, Ahmedabad (Firm Registration No. 000025) carried out the cost audit for applicable businesses during the year. The Board of Directors

has appointed them as Cost Auditors for the financial year 2021-22. The remuneration payable to the Cost Auditors is required to be placed before the Members in a general meeting for their ratification. Accordingly, a Resolution seeking Members' ratification for the remuneration payable to Kiran J. Mehta & Co., Cost Auditors is included at item No. 7 of the notice convening the Annual General Meeting.

• Secretarial Auditors

Pursuant to the provisions of Section 204 of the Companies Act, 2013 and The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Company has appointed M/s. Hitesh Buch & Associates, a firm of Company Secretaries in practice, to conduct the Secretarial Audit of the Company for the financial year 2020- 21.

The Secretarial Audit Report for the financial year ended 31st March 2021, pursuant to Section 204 of the Companies Act, 2013 and Rule 9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 and Regulation 24A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is annexed herewith as "Annexure - C". The Secretarial Audit Report does not contain any qualifications, reservation or adverse remarks.

29. ENHANCING SHAREHOLDERS' VALUE

Your Company believes that its Members are its most important stakeholders. Accordingly, your Company's operations are committed to the pursuit of achieving high levels of operating performance and cost competitiveness, consolidating and building for growth, enhancing the productive asset and resource base and nurturing overall corporate reputation. Your Company is also committed to creating value for its other stakeholders by ensuring that its corporate actions positively impact the socioeconomic and environmental dimensions and contribute to sustainable growth and development.

30. CORPORATE GOVERNANCE REPORT AND MANAGEMENT DISCUSSION & ANALYSIS

The Corporate Governance Report and Management Discussion & Analysis, which form part of this Report, together with the Certificate from the auditors of the Company regarding compliance of conditions of Corporate Governance as stipulated in Schedule V of Regulation 34(3) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

31. BUSINESS RESPONSIBILITY REPORT

The Business Responsibility Report for the year ended 31st March 2021 as stipulated under Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is annexed which forms part of this Annual Report.

32. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO

The information on conservation of energy, technology absorption and foreign exchange earnings and outgo stipulated under Section 134(3)(m) of the Companies Act, 2013 read with Rule 8 of The Companies (Accounts) Rules, 2014, is annexed herewith as "Annexure - D".

33. EXTRACT OF THE ANNUAL RETURN

The details forming part of the extract of the Annual Return is available on Company's website at:

https://www.arvind.com/sites/default/files/field_investor_updates_file/AnnualReturn2021.pdf

34. PARTICULARS OF EMPLOYEES

The information required pursuant to Section 197(12) of the Companies Act, 2013 read with Rule 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 in respect of employees of the Company, will be provided upon request. In terms of Section 136(1) of the Companies Act, 2013, the Report and Accounts are being sent to the Members and others entitled thereto, excluding the information on employees' particulars which is available for inspection by the Members at the Registered Office of the Company during business hours on working days of the Company up to the date of the ensuing Annual General Meeting. If any Member is interested in obtaining a copy thereof, such Member may write to the Company Secretary in this regard.

Disclosures pertaining to remuneration and other details as required under Section 197(12) of the Companies Act, 2013 read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are given in ''Annexure - E'' to this report.

35. DISCLOSURE AS PER SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013

The Company has zero tolerance for sexual harassment at workplace and has adopted a policy against sexual harassment in line with the provisions of Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the rules framed thereunder.

Arvind Internal Complaints Committee (AICC) is formed and its details are declared across the organizations. All AICC members are trained by subject experts on handling the investigations and proceedings as defined in the policy.

During the financial year 2020-21, no complaints of sexual harassment were received by the AICC.

36. ACKNOWLEDGEMENTS

The Board expresses its sincere thanks to all the employees, customers, suppliers, investors, lenders, regulatory and government authorities and stock exchanges for their cooperation and support and look forward to their continued support in future.

	By order of the Board
Place: Ahmedabad	Sanjay Lalbhai
Date: May 26, 2021	Chairman and Managing Director

Annexure - A to the Directors' Report

Disclosures under Regulation 14 of the SEBI (Share based Employee Benefit) Regulations, 2014:

The details of ESOP 2008 for the year ended March 31, 2021 are as under:

Description of ESOP 2008:
Date of shareholder's approval	23-Oct-2007
Date of shareholder's approval on amendment	30-Aug-2018
Total number of shares approved under ESOP 2008	5% ofshare capital from time to time
Vesting requirements	Options vest over a period of 1 to 5 years based on continued
	service and certain performance parameters.
Exercise price or pricing formula	The exercise price shall be the Market Price for options to be
	granted under this scheme. However, exercise price can be such
	other price as may be decided by the Nomination and
	Remuneration Committee for grant of options not exceeding
	0.5% of the paid-up equity shares as on 31st March 2018 or such
	other price as may be required to be arrived in accordance with
	the applicable laws. Further, Nomination and Remuneration
	Committee shall grant such options not exceeding 0.5% of paid up capital as mentioned above to employees in lieu of cash
	compensation based on achievement of key performance
	indicators and such options shall not exceed 0.15% of the paid-up
	capital to any one employee.
Maximum term of options granted	5 yearsfrom the date of grant
Source of shares	Primary
Variation of terms of options	No variations were carried out in the reporting financial year
	Fair Value Method
Where the Company opts for expensing of the options using the intrinsic value of the options,	Not applicable
the difference between the employee compensation cost so computed and the employee
compensation cost thatshall have been recognized if it had used the fair value of the optionsshall be
disclosed. The impact of this difference on the profits and EPS of the Company shall also be
disclosed.
(i) Difference between Intrinsic value and Fair value compensation cost
(ii) Impact on the Profits of the Company ( ) `
(iii) Impact on Basic Earnings Per Share of the Company ( ) `
(iv) Impact on Diluted Earnings Per Share of the Company ( ) `
Option movement during the year:
Options Outstanding at the beginning of the year	19,83,000
Options granted during the year	23,11,750
Optionsforfeited / lapsed during the year	2,00,000
Options vested during the year	1,57,000
Options exercised during the year	1,57,000
Number ofshares arising as a result of exercise of option	1,57,000
(`) Money realised by exercise of options	15,70,000
Loan repaid by the Trust during the yearfrom exercise price received Options Outstanding at the end of the year	NA 39,37,750
Options Exercisable at the end of the year	14,26,000

Weighted average exercise prices of options whose Exercise price equals market price of stock	52.09
Exercise price exceeds market price of stock	` -
Exercise price is less than market price of stock	` 10.00
Weighted average fair value of options whose
Exercise price equals market price of stock	16.18 `
Exercise price exceeds market price of stock	-
Exercise price is less than market price of stock	` 23.97
Employee wise details of options granted to:
(i) Key managerial personnel;	Jayesh Shah, CFO – 9,00,000 options
(ii) any other employee who receives a grant in any one year of options amounting to five per cent	Aamir Akhtar – 5,00,000 options
or more of options granted during that year;	Ashish Kumar – 5,00,000 options
	Susheel Kaul – 4,11,750 options
(iii) identified employees who were granted options, during any one year, equal to or exceeding one
per cent of the issued capital (excluding outstanding warrants and conversions) of the issuer at	None.
the time of grant.

A description of the method and significant assumptions used during the year to estimate the fair values of options, including following weighted average information:
(i) Share price ( ) `<br>(ii) Exercise price ( )<br>` (iii) Expected volatility (iv) Risk-free interestrate (v) Any other inputsto the model (vi) Method used and the assumptions made to incorporate effects of expected early exercise (vii) How expected volatility was determined, including an explanation of the extent of to which expected volatility was based on historical volatility	33.50 34.31 74.90% 4.27% None Binomial Option Pricing Model The daily volatility of the Company's stock price on stock exchanges over the expected life of the options has been considered.
(viii) Whether any or how any other features of option grant were incorporated into the measurement of fair value, such as market condition.	None

Annexure - B to the Directors' Report

ANNUAL REPORT ON COROPRATE SOCIAL RESPONSIBILITY (CSR) ACTIVITIES

ANNEXURE - I

1. Brief outline on CSR policy of the Company

Care for the society has been an intrinsic value for the promoters of the Lalbhai group. We strongly believe that a company can improve its own functioning by influencing the environment in which it operates. Our long tradition of contributing to the growth and development of the society led to the setting up of multiple institutions in the realm of educational, social and cultural domains in improving the lives of the people. Our ethos in the realm of Corporate Social Responsibility got culminated in Arvind Limited Policy on Corporate Social Responsibility (ALPCSR).

Our CSR Policy is and will always be synergetic to the broader areas that the Schedule VII of the New Companies Act has defined or will define from time to time.

The key points of the policy can be reached at our website through the given link:

https://www.arvind.com/sites/default/files/field_policy_file/CSR%20Policy%202019.pdf

Overview of CSR Initiatives

Arvind Limited through its CSR policy aims to work for social, economic, educational, infrastructural, environmental, health, inner wellbeing and cultural advancement of the people and thereby positively impact their quality of life. Our CSR programs are in the realm of education, rural transformation, livelihood promotion, art and heritage, women empowerment and inner wellbeing. The projects and programs are in accordance to the thematic areas as defined in Schedule VII of the Companies Act, 2013. The development initiatives are being carried out by company promoted organizations – Strategic Help Alliance for Relief to Distressed Areas Narottam Lalbhai Rural Development Fund and Arvind Foundation and other partner Civil Society Organizations. The organizations have formed synergistic partnerships to enhance the quality of deliverables and increase the reach of the programs. (SHARDA) Trust, (NLRDF) (AF)

The company has defined three broader themes to bring larger focus in our CSR initiatives. The broad three thematic areas are All our initiatives will broadly be falling under the given three umbrella without limiting the purpose, scope and flexibility of CSR initiatives. Educational Advancement, Rural Advancement and Cultural Advancement.

Impact of Pandemic on CSR Initiatives

The world witnessed the pandemic that hugely distressed everyone during 2020-21. While the report is being written in first quarter of 2021-22, the Pandemic is still causing loss of lives and livelihood. This pandemic has hugely affected one and all and our CSR initiatives are no exception. Though we have tried our best to be connected to the communities we work with, it was not possible to normally operate during the lockdowns and time of restrictive movements. Our regular CSR initiatives were hugely affected be it the We have tried to continue reaching out to our communities and frontline workers and help them through our COVID relief operations. The technology has helped in a big way in connecting with our people virtually. When the pandemic situation improves, we see a big shift in use of technology in reaching out to our communities in all programs and perhaps reimagining all the initiatives afresh that we supported so far. Educational Advancement, Rural Advancement or Cultural Advancement.

Initiative brief:

The Ministry of Corporate Affairs has given a new format for reporting from the year 2020-21. To supplement this reporting, a brief of initiatives we have carried out and the funds released for them in last three years is given in the following Table 1.

	Table 1 Arvind Limited CSR - Directors' Report Annexure B 2018-19, 2019-20 & 2020-21
			Amount (Rupees Lacs)
S. No.	CSR Projects	2018-19	2019-20	2020-21	Remarks
1	Project Expenses for Health Project	65	0	0	Project completed.
2	Promotion of Indology	100	0	0	Project completed.
3	Rural Development Projects in Company's Area of Operations	50	0	0	Project not funded for last two years. Continuing with other group company's support.
4	Towards Promoting Education	70	0	0	Project not funded for last two years. Continuing with other group company's support and partner organisation's own sources.
5	Initiatives of Inner Wellbeing	65	0	0	Project not funded for last two years. Continuing with other group company's support and partner organisation's own sources.

	Table 1 Arvind Limited CSR - Directors' Report Annexure B 2018-19, 2019-20 & 2020-21
			Amount (Rupees Lacs)
S. No.	CSR Projects	2018-19	2019-20	2020-21	Remarks
6	Rural Development Project in district Narmada - Home Stay Project and other rural development in Ahmedabad and Gandhinagar	0	200	0	Project Completed. Project not funded last year. Continuing with other group company's support and partner organisation's own sources.
7	Other CSR Projects Supported	93	15	0	Project completed.
8	Administrative Expenses	37	10	43
9	Setting up a multipurpose community centre and related activities around factory premises	0	0	0
10	Setting Up Indigo Museum	0	0	0	Initiated with Arvind Foundation's funds.
11	Carry Forward	0	375	0
12	Corpus	250	0	838	Rs 357 Lacs (Carried Forward Rs 375 Lacs minus 5% Admin Expenses from 2019-20 + Rs 481 Lacs (Rs 506 Lacs minus 5% admin Expenses) for 2020-21.
	Total	730	600	881

Though the initiatives are affected badly, some are put on hold or are closed, we have not only taken up COVID relief operations but also ensured that the starting of the activities when the pandemic situation improves shouldn't be a cause of worry. To do so, the CSR budget of 2020-21 is given as Corpus. The brief of initiatives are given in following paragraphs:

Education: Under the broad theme of Educational Advancement, Gyanda is our supplementary education program designed for primary, secondary and higher secondary school going children. This initiative is carried out by SHARDA Trust, Company's CSR arm. The Trust didn't receive any funds from the company and it has managed this initiatives through Group Company's CSR support and its own funding sources. The initiative, though has tried to continue supporting its students through online teaching, we notice a huge issue with access to technology and working on stepping up to the challenge. During 2019-20, Gyanda had an enrolment of more than 1,100 students. We anticipate about 30-40% drop in number. No funds were released during 2020-21. Refer Table 1 point 4.

Rural Transformation: Under the broad theme of Rural Advancement, the Arvind Rural Transformation Initiative (ARTI) is a combination of long term integrated programs focused in defined geographies in Ahmedabad, Gandhinagar and Narmada districts of Gujarat. As part of our regular rural advancement programme, Farmers' training on sustainable agricultural farming and an orientation on the concept of Farmer Producer Organisation (FPO) was organised in spite of pandemic. A group of women got training for advanced animal husbandry and best dairy practices. 140 women from Hazipur and Jetlej villages have been assessed through a Need assessment process for non-farm livelihood and 30 women have shown their readiness for enterprise setup. We will take up this program shortly.

Though this program also took a hit due to pandemic, a component of COVID relief was added which was the need of the hour from our funds over and above 2% CSR budget. We are reporting this at the end of this report. No funds were released during 2020-21 for ARTI. Refer Table 1 point 6.

Livelihood Promotion through tribal home stay project: We reported last year that as part of our Rural Transformation program, we carried out a Home Stay Project in villages in Garudeshwar Taluka in Narmada District. With the aim to increase the income of tribal families, quality home stay facilities were created for tourist at rural homes. The Taluka has the advantage of hosting the World's tallest statue – The Statue of Unity which is a major tourist destination there and hence a huge potential of additional alternative income for the native tribal families. The Arvind Smart Spaces Limited (ASSL) managed the project pro bono on behalf of the company. With the technical expertise, ASSL created a team and undertook site survey, feasibility study, house level mapping, vendor management and supervising the overall execution. The project was completed successfully and a total of 37 rooms in 26 houses were constructed for tourist's occupation. Arvind Foundation has linked the 26 tribal families with dignified livelihood in record time and project is creating lasting impact in the lives of people. The project was complete during 2020-21. No funds were released during 2020-21. Refer Table 1 point 6.

Inner Well Being: We reported last year that as part of our rural transformation strategy, Arvind is carrying out an Inner Wellbeing Program in rural Gujarat and Rajasthan since last four years. This is result of our conviction that the physical and social developments are meaningful only if people are also well and experience peace from within. This program is based on the Sahaj Marg system of meditation called Hearfulness and it reached to close to 200 places and around 15,000 people during 2019-20. This programme was hugely hit due to pandemic as movement to the distant rural location wasn't possible. The partner organization SHARDA continued supporting this initiative, though at much lower scale. Hence, for the company, we considered this as a project completed. We will again have a relook at the project when the impact of pandemic is over. No funds were released during 2020-21. Refer Table 1 point 5.

Promotion of Indology: We reported last year that as part of our commitment to support Cultural Advancement, the company supported Lalbhai Dalpatbhai Bhartiya Sanskriti Vidyamandir (LDBSV) for the project named Promotion of Indology towards its efforts to preserve India's rich heritage. The project created a comprehensive digital repository of paper/palm-leaf manuscripts. The pandemic has affected this project too. No funds were released for the project from company during 2019-20 and 2020-21. Refer Table 1 point 2.

Indigo Museum: We reported last year that as part of our commitment to support Cultural Advancement, the company has approved a unique plan to set up an Indigo Museum. The company supported this project through Arvind Foundation. However, during the year under review, no funds were released for the project. Refer Table 1 point 10.

Projects undertaken from funds over and above 2%

Young people's empowerment program (YPEP): As part of its commitment towards the Educational Advancement, the company initiated a program YPEP with Collective Good Foundation (CGF). The program is designed to empower and equip women with knowledge, skills and abilities to enable their entry in white collar jobs and self-employment opportunities. The project envisaged designing the program, developing a holistic model based on learnings and outcomes from the pilot, standardizing the program and developing toolkit so that it can be implemented across various locations in India through the civil society partners. It also envisaged to encourage like-minded organizations to champion and institutionalize the program and amplifying the model to showcase impact. Like other programs, though the YPEP also suffered due to COVID, we were able to complete the pilot phase. We have requested CGF to prepare a blended approach for implementing the learning through online and offline interventions. Once the severity of pandemic comes down and life becomes normal, we will look at the project afresh.

COVID Relief: The Company undertook the COVID relief operations in the areas where we operate and also extended this to the front line workers in the health and security sector elsewhere through the Arvind Foundation and SHARDA Trust. As we write this report, these operations continue during the year 2021-22 also, in a much larger scale. The COVID support initiatives during 2020-21 included COVID testing, PPE kit and Bio suit distribution to frontline workers, distribution of masks and disinfectants etc. In addition, through SHARDA Trust, our CSR arm, food packets were distributed to the communities along with supporting the community kitchens that the community managed. In addition, Arvind Foundation supported blue collar workers who had lost their jobs due to the pandemic by providing a returnable grant for financial sustenance and a training program with placement linkage. Collective Goods Foundation (CGF) implemented this as part of our COVID relief programme. We placed 450+ candidates. CGF also gave a returnable grants to 125 candidates who needed it during their placement period.

ANNEXURE II

1. Brief Outline on CSR Policy of the Company

2. Composition of the CSR Committee

The Arvind Limited has set up Corporate Social Responsibility Committee (CSR Committee) as per the requirement of the Companies Act. The members of the CSR Committee are:

Sl. No.	Name of Director	Designation	Nature of Directorship	Number of meetings of CSR Committee held during the year	Number of meetings of CSR Committee attended during the year
1	Mr. Sanjay Lalbhai	Member	Chairman and Managing Director	2	2
2	Mr. Punit Lalbhai	Member	Executive Director	2	2
3	Mr. Jayesh Shah	Member	Wholetime Director and CFO	2	2
4	Dr. Bakul Dholakia	Chairman	Independent Director	2	2

3. Web-link where Composition of CSR committee, CSR Policy and CSR projects approved by the board are disclosed on the website of the company.

https://www.arvind.com/sites/default/files/field_policy_file/CSR%20Policy%202019.pdf

4. Details of Impact assessment of CSR projects carried out in pursuance of sub-rule (3) of rule 8 of the Companies (Corporate Social Responsibility Policy) Rules, 2014, if applicable.

Not Applicable

5. Details of the amount available for set off in pursuance of sub-rule (3) of rule 7 of the Companies (Corporate Social Responsibility Policy) Rules, 2014 and amount required for set off for the financial year, if any NIL
6. Average net profit of the Company as per Section 135(5)

The average net profit of the Company is ` 252.80 crores.

7. a) Two percent of average net profit of the company as per section 135(5):

5.06 Crores `

b) Surplus arising out of the CSR projects or programmes or activities of the previous financial years: NA.
c) Amount required to be set off for the financial year, if any: NIL
d) Total CSR obligation for the financial year (7a+7b-7c): 5.06 Crores `

8. (a) CSR amount spent or unspent for the financial year:

Total Amount Spent for the	Amount Unspent (in Rs.)
Financial Year. (in Rs.)	Total Amount transferred to Unspent CSR Account as per section 135(6).		Amount transferred to any fund specified under Schedule VII as per second proviso to section 135(5).
	Amount	Date of transfer	Name of the Fund	Amount	Date of transfer
8,81,00,000/-	NIL	-	NA	NIL	-

*Unspent amount of Rs. 3,75,00,000/- for FY 2019-20 spent in FY 2020-21.

(b) Details of CSR amount spent against ongoing projects for the financial year:

(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)	(10)		(11)
Sl. No.	Name of the Project	Item from the list of activities in Schedule VII to the Act	Local area (Yes/ No)	Location of the project	Project Duration	Amount allocated for the project (in Rs.)	Amount spent in the current Financial Year (in Rs.)	Amount transferred to Unspent CSR Account for the project	Mode of Implem entation - Direct (Yes/No)		Mode of Implementation - Through Implementing Agency
				State District				as per Section 135(6) (in Rs.)		Name	CSR Registration number
(1)	Arvind Rural Transform ation Initiative (ARTI)	X	Yes	Gujarat, Gandhinagar, Ahmedabad, Narmada	3-5 Years	0	0	NIL	No	Arvind Foundation CSR Registration Number CSR00004733
	Total						0

(c) Details of CSR amount spent against other than ongoing projects for the financial year: Not Applicable.

(1)	(2)	(3)	(4)	(5)			(8)
Sl. No.	Name of the Project	Item from the list of activities in Schedule VII to the Act	Local area (Yes/ No)	Location of the project		Amount allocated for the project (in Rs.)	Mode of Implem entation - Direct (Yes/No)	Mode of Implementation - Through Implementing Agency
				State	District	Name	CSR Registration number
1
2
3
	Total

d) Amount spent in Administrative Overheads:

0.43 crores (4.88% of total 8.81 crores spent in FY 2020-21)

e) Amount spent on Impact Assessment, if applicable: Not Applicable
f) Total amount spent for the Financial Year (8b+8c+8d+8e): Rs. 0.43 Crores
g) Excess Amount for set off, if any:
NIL

Sl. No.	Particular	Amount (in Rs.)
(i)	Two percent of average net profit of the company as per section 135(5)	5,06,00,000.00
(ii)	Total amount spent for the Financial Year	8,81,00,000.00
(iii)	Excess amount spent for the financial year [(ii)-(i)] *	3,75,00,000.00
(iv)	Surplus arising out of the CSR projects or programmes or activities of the previous financial years, if any	NIL
(v)	Amount available for set off in succeeding financial years [(iii)-(iv)]	NIL

*NOTE: Unspent amount of Rs. 3,75,00,000/- for FY 2019-20 spent in FY 2020-21.

9. (a) Details of Unspent CSR amount for the preceding three financial years:

Sl. No.	Preceding Amount transferred to Financial Unspent CSR Account Year under section 135 (6) (in Rs.)		Amount spent in the reporting Financial Year		Amount transferred to any fund specified under Schedule VII as per section 135(6), if any		Amount remaining to be spent in succeeding
			(in Rs.)	Name of the Fund	Amount (in Rs)	Date of transfer	financial years. (in Rs.)
1	2019-20	-	3,75,00,000	NA	NIL	-	NIL
2	2018-19	-	0	NA	NIL	-	NIL
3	2017-18	-	0	NA	NIL	-	NIL
	Total		3,75,00,000		NIL		NIL

(b) Details of CSR amount spent in the financial year for ongoing projects of the preceding financial year(s): NIL

(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)
Sl. No.	Project ID	Name of the Project	Financial Year in which the project was commenced	Project Duration	Total Amount allocated for the project (in Rs.)	Total Amount spent in the reporting Financial Year (in Rs.)	Cumulative amount spent at the end of reporting Financial Year. (in Rs.)	Status of the project - Completed / Ongoing
1
2
3
	Total

10. In case of creation or acquisition of capital asset, furnish the details relating to the asset so created or acquired through CSR spent in the financial year:
(a) Date of creation or acquisition of the capital asset(s): No Capital Asset created during the financial year 2020-21.
(b) Amount of CSR spent for creation or acquisition of capital asset: Not Applicable
(c) Details of the entity or public authority or beneficiary under whose name such capital asset is registered, their address etc. Not Applicable
(d) Provide details of the capital asset(s) created or acquired (including complete address and location of the capital asset). Not Applicable
11. Specify the reason(s), if the company has failed to spend two per cent of the average net profit as per section 135(5): Not applicable. The Company has spent the required amount.

Sd/- Mr. Sanjay Lalbhai Chairman and Manging Director

Sd/- Dr. Bakul Dholakia Chairman – CSR Committee

Sd/- Mr. Jayesh Shah Director & Group Chief Financial Officer

Annexure - C to the Directors' Report

SECRETARIAL AUDIT REPORT

FOR THE FINANCIAL YEAR ENDED 31ST MARCH 2021 [Pursuant to Section 204(1) of the Companies Act, 2013 and Rule 9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014]

To, The Members, Arvind Limited CIN: L17119GJ1931PLC000093 Naroda Road Ahmedabad-380025

We have conducted the secretarial audit of the compliance of applicable statutory provisions and the adherence to good corporate practices by Arvind Limited (hereinafter called the Company). Secretarial Audit was conducted in a manner that provided us a reasonable basis for evaluating the corporate conducts / statutory compliances and expressing our opinion thereon.

Based on our verification of the Company's books, papers, minute books, forms and returns filed and other records maintained by the Company and also the information provided by the Company, its officers, agents and authorized representatives during the conduct of secretarial audit, we hereby report that in our opinion, the Company has, during the audit period covering the financial year ended on 31st March 2021 complied with the statutory provisions listed hereunder and also that the Company has proper Board-processes and compliance-mechanism in place to the extent, in the manner and subject to the reporting made hereinafter:

1. We have examined the books, papers, minute books, forms and returns filed and other records maintained by Arvind Limited ("the Company") for the financial year ended on 31st March 2021 according to the provisions of:
(i) The Companies Act, 2013 ("the Act") and the rules made thereunder;
(ii) The Securities Contracts (Regulation) Act, 1956 ('SCRA') and the rules made thereunder;
(iii) The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder;
(iv) Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to the extent of Foreign Direct Investment, Overseas Direct Investment and External Commercial Borrowings;
1. The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992 ('SEBI Act'):
(i) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011;
(ii) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015;
(iii) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018;
(iv) The Securities and Exchange Board of India (Share based Employee Benefits) Regulations, 2014;
(v) The Securities and Exchange Board of India (Listing Obligations & Disclosure Requirements) Regulations, 2015;
(vi) The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008;
(vii) The Securities and Exchange Board of India (Registrars to Issue and Share Transfer Agents) Regulations, 1993 regarding the Companies Act and dealing with client; (Not Applicable as the Company is not registered as Registrar and Transfer Agents with SEBI)
(viii) The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009; (Not applicable as the Company has not applied for delisting of Equity Shares during the financial year)
(ix) The Securities and Exchange Board of India (Buyback of Securities) Regulations, 1998 (Not Applicable as the Company has not bought back any of the securities during the financial year)
1. We have relied on the representation made by the Company and its Officers for systems and mechanism formed by the Company for compliances under other applicable Acts, Laws and Regulations as applicable to the Company.
1. The Company has identified and confirmed the following laws as specifically applicable to the Company:
(i) Explosives Act, 1884
(ii) Electricity Act, 2003
(iii) Public Liability Insurance Act, 1991
(iv) Information Technology Act, 2000
(v) Essential Commodities Act, 1955
(vi) Textile Committee Act, 1963
(vii) Textile (Development & Regulation) Order, 2001

(viii) Textile (Consumer Protection) Regulations, 1988

We have also examined compliance with the applicable clauses of Secretarial Standards issued by The Institute of Company Secretaries of India and the Listing Agreement entered into by the Company with National Stock Exchange of India Limited and BSE Limited.

During the period under review the Company has complied with the provisions of the Act, Rules, Regulations, Guidelines, Standards, etc. mentioned above.

We further report that

The Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non-Executive Directors and Independent Directors. Adequate notice is given to all directors to schedule the Board Meetings, agenda and detailed notes on agenda were sent at least seven days in advance, and a system exists for seeking and obtaining further information and clarifications on the agenda items before the meeting and for meaningful participation at the meeting.

Majority decision is carried through, while the dissenting members' views are captured and recorded as part of the minutes.

We further report that there are adequate systems and processes in the Company commensurate with the size and operations of the Company to monitor and ensure compliance with applicable laws, rules, regulations and guidelines.

We further report that during the audit period:

• The Company passed a special resolution at the Annual General Meeting held on 25th September 2020 authorizing the board of directors to offer, issue and allot Secured / Unsecured Redeemable Non-convertible debentures, subordinated debentures, bonds, other debt securities etc. on private placement basis for an amount not exceeding Rs. 150 crore.

Hitesh Buch For, Hitesh Buch & Associates FCS No.: 3145; C P No.: 8195 Date: 26th May 2021 UDIN: F003145C000371931

Place: Ahmedabad

This Report is to be read with our letter of even date which is annexed as and forms an integral part of this report. Note: We have conducted online verification and examination of records, as available in the public domain and as facilitated by the company, due to Covid19 restrictions / compulsions and considering the extra-ordinary circumstances arising out of current pandemic, for the purpose of issuing this report. Annexure

To, The Members, Arvind Limited CIN: L17119GJ1931PLC000093 Naroda Road Ahmedabad–380025

Our report of even date is to be read along with this letter.

1. Maintenance of secretarial records is the responsibility of the management of the Company. Our responsibility is to express an opinion on these secretarial records based on our audit.
1. We have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the correctness of the contents of the secretarial records. The verification was done on the test basis to ensure that correct facts are reflected in the secretarial records. We believe that the processes and practices we followed provide a reasonable basis for our opinion.
1. We have not verified the correctness and appropriateness of financial records and books of accounts of the Company.
1. Wherever required, we have obtained the management representation about the compliance of laws, rules and regulations and happening of events etc.
1. The compliance of the provisions of corporate and other applicable laws, rules, regulations and standards is the responsibility of management. Our examination was limited to the verification of procedures on test basis.
1. The Secretarial Audit Report is neither an assurance as to the future viability of the Company nor of the efficacy or effectiveness with which the management has conducted the affairs of the Company.

Hitesh Buch For, Hitesh Buch & Associates Place: Ahmedabad FCS No.: 3145; C P No.: 8195 Date: 26th May 2021 UDIN: F003145C000371931

Annexure

Annexure - D to the Directors' Report

Information on Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo stipulated under Section 134(3)(m) of the Companies Act, 2013 read with Rule 8 of the Companies (Accounts) Rules, 2014.

A. CONSERVATION OF ENERGY:

1. Energy Conservation Measures taken:

Constant efforts in continuing all previous conservation measures and increasing awareness of energy management amongst employees have continued which should enable further savings going forward.

Arvind Naroda & Intex Denim Unit:

Sr. No.	Work Description	Saving/ Day (Kwh)	Units Saved/ Year (Kwh)
	Denim Business Naroda Unit:
1	RODM supply water Pump of 55 Kw Replaced by 30 KW IE3 Energy Efficient Pump	168	57120
2	Removed Orific type flow meter from compressor line resulted eliminated main line	10663	3412160
	compressed air pressure drop. Air leakage arresting in C50 Comp room
3	Replaced IJT Blr. PA Fan Motors with IE3 Motors : 02 Nos.	33.6	11827
4	Replaced Thermax Boiler FD Fan Motor with IE3 Motors	72	25344
5	Installed 45KW New VFD with CTP-4 Pump	225.6	81216
6	Installed Motion Sensor in Switch yard Room for Auto Lighting ON/OFF	2.67	973
7	Energy saving by Optimizing compressed air generation pressure From 102 PSI to 95PSI	840	268800
9	C35 compressor cooling tower water line extension to C90 cooling tower and C90	1032	185760
	compressor heat load can be transferred over C35 cooling tower during rest of summer
	months resulting 43 Kw/Hr power saving
9	Installation of 500 nos. LED light in place of conventional lights in Rope area	216	77760
	Intex Unit:
1	RS1 card H-plant return air fan AC drive installed resulting 4.2 kw saving	100.8	34675
2	Frequency converter installed inRS3 D/F radial fan and put in operation -power saving 14 kw	300	103200
3	RS 2 rotary filter cloth replaced by net which resulted suction increase.	1200	422400
	By this R/F 2, 30 Kw SA fan 1 &30 Kw RA fan 1 kept stop. 50 Kw/Hr power saving
4	RS4 R/FRAF1 VFD drive installed & with same pressure + 01 no rotary filter cloth replaced	360	117000
	by net- power saving 15 kw
5	RS2 card h-plant installed 11 kw mono-block pump instead of 22 kw end suction DB type	192	66048
	pump & with same pressure – power saving Resulting 8 kw/Hr power saving
6	RS4 R/FRAF2 impeller blade angle change and rotary filter cloth replaced by	360	126720
	net- resulting power saving 15 kw
7	RS4 card h plant pump 22 kw drive installed. Resulting 8 kw/hr power saving	192	66048
8	RS2 R/f H-plant pump 22 kw VFD drive installed. Resulting 8 kw/hr power saving	192	67584
9	Installation of LED lights:	86.4	31152
	• 50 w LED lights installed (3 no's) in place of conventional tube (60 no's) in RS2 &
	RS1dept.- Resulted power saving 1.9 kw
	• 50 w LED lights installed (06 no's) in place of conventional tube (44 no's) in
	RS2-4 LT panel room- power saving 1.3 kw

	• 250 w sodium vapor lamp street light replaced by 50 w led (02 no's)
	-resulting power saving
10	Moisture trap provided at IHE7 compressor resulted air leakages reduces 26 cfm	131.04	22932

Ankur Textiles (AT):

1. Monitoring of power consumption and production data to sustain lowest possible kwh/kg through minimum operation of machines. FY 19-20: 2.957 KWH/KG AND FY 20-21: 2.8203 KWH/KG, ENHENCEMENT-4.62%
1. Diverted to open access power and took advantage of low cost.
1. In view of saving natural resources, we are treating Sewage water by our own Sewage Treatment plant at Ankur and during FY 20-21- 271120 KL raw sewage treated and reused for production, which is 43.7 % of total water consumption.
1. Reuse of 10,900 KL/year condensate water at STEAM BOILER saving energy and water.
1. Almost 21,878 KL /year machine cooling water as hot process water is reused in the processing area.
1. Regular checking for wasteful use of water followed by remedial action.
1. Steam condensate recycling in various areas adopted in order to reduce water and steam consumption.
1. During FY-20-21, 6,23,088 KWH solar energy generated from 508.2 kW solar plant.

Steam (Coal) Conservation:

Efforts at Arvind have continued in various forms - these have helped drive both water usage and steam consumption down as well as improved the availability of water from careful harvesting. Optimization of ground water whereas entire process have operated with treated sewage water by installing of sewage treatment plant of 8000 KL/Day at Arvind Ltd. - Naroda in Feb 2020. Some key actions are highlighted below:

Denim Fabric Naroda Unit:

Sr. No.	Work Description	Coal Saving tons/Year
1	Coal Consumption reduced by steam condensate and flash steam recovery	516 Ton
2	Increased boiler combustion efficiency due to replaced modified air nozzle resulting reduction in coal consumption	278 Ton
3	APH install in IJT boiler and improved boiler efficiency resulting coal saving	1285 Ton

Wovens Fabric Santej Unit:

Sr. No.	Work Description	Coal Saving tons/Year
1	Installed Air preheater at TFH exhaust side to recover flue gas heat losses	27905
2	Made use of condensate coming out from shirting section as boiler feed water or in process area	168350
3	Provided Steam insulation to bare pipe in all section in plant	13510
4	Replacement of cooling tower pumps with required head and energy efficient pumps	148500
Sr. No.	Work Description	Gas Saving SCM/Year
1	Converted thermic fluid operated stenter to direct gas fired	450000

2. Additional Investment and Proposals, if any, being implemented for reduction of Consumption of Energy: Capital Investment on energy conservation equipments for Denim Fabric Division at Arvind Naroda, Power Plant – Reduction

Sr. No.	Proposed Saving Project Details:
Naroda Unit:
1	Installation of 746Kwp Roof top Solar panels in addition of 253Kwp solar panels in Arvind Naroda campus
2	Small back press turbine (325kw+150kw) at boiler PRS station and Deaerator PRS
3	Boiler inlet water pre heat by install heat recovery unit at air compressor
4	Replaced IE1/IE2 motor with IE3/IE4 in boiler area
5	VFD to be installed on boiler FD fan
6	Replacement of 2 nos. Old bore well pump By Energy efficient bore well pump, expected 1104 Kwh/ Day power saving
Intex Unit:
7	RS1 dept. 860 nos. 36w conventional tube light to be replaced by 18w LED lights
8	RS2 S/F H-Plant RA fan 22 kw VFD drive to be installed for Expected power saving 7 Kw/Hr

3. Impact of the measures at (1) and (2) above the reduction of energy consumption and consequent impact on the cost of production of goods:

Better Efficiency, Optimum Fuel - Utilization and available Heat Energy, Reduction in Energy Bill, Reduction in Down Time, Higher Productivity and Reduction in Cost of Production. These measures will also help to create a better environment and result in water conservation.

B. TECHNOLOGY ABSORPTION:

1. Efforts made towards technology absorption:

in energy, coal, water consumption (2020-21).

Denim Business - Naroda Road:

Four Key Pillars of our strategy revolve around Design, Innovation, Sustainability and Service. We are constantly scouting for & adopting technologies that support & enhance these commitments. Following Technology interventions are poised to deliver business results.

Quantum Foam Dyeing: We are one of the 2 Global Early adopters of the Indigo foam dyeing technology. It is major disruption in the way Denim yarns are dyed, delivering substantial reduction in environmental impact & cost of manufacturing. Technology is now being adapted for Sulphur dyeing & various permutations / combinations of Indigo & Sulphur. Discerning Global Brands & Retailers are keen to adopt this technology.
Cleankore™ Dyeing: Early adoption of the Proprietary Cleankore™ Dyeing technology from Revolaze USA. Quantifiable environmental savings in dyeing & higher laser friendliness at garment laundry, rendering the garments washed with this technology "PP Free". This is a stated objective at various global brands, which are targeting elimination of the use of PP spray in garment laundries. Technology is now being extended to Sulphur dyeing.
Renaissance Recycled Fiber: In-house garneting capacity for opening recycled cotton fiber. Enhanced control over the supply chain & enhanced capability to add higher recycled fiber content in products (20-40%). Circularity of raw materials is emerging as a key theme in the industry.
Exotica Natural Fibers: Various natural fibers like Hemp, Linen, and Grass fiber have been successfully incorporated in denim fabrics by adapting spinning & fabric manufacturing processes. These enhanced both aesthetic & sustainability quotient of the finished garments & provide viable alternatives to cotton.
Infiknity Indigo True Knits: A fresh take at the Jeanswear category by extending it into true knit substrate. Indigo Dyed Yarns are being knitted using multiple knitting technologies in a never before manner. Various, unique looping structures have been generated for tops & bottoms, ranging from active inspired to smart casuals. Connecting extremely well with the WFH, Lounge Wear, Athleisure themes, through higher inherent comfort. Also commercialized a range of seamless garments, directly converting yarn to ready garments.
Digital Presentation tools (Digital Library & Virtual Showroom): With continued restrictions on travel, dependence on digital presentations & virtual renderings has increased many folds. We have invested in professional digital photography tools & presentation software. We have also collaborated with an Italian Look Customizer Software – MYR for virtual rendering of garment images. Substantial

reduction in physical sampling, reduced costs & sampling lead times.

B2B Online Portal Improved service & transparency with customers through seamless & real time access to basic business data & transaction.
CRM Tool Microsoft D365: A comprehensive Business process management software for improved productivity & service. Key Account Plans, Activity Trackers, Enquiry Pipeline Management, PD Pipeline, Sales Performance etc to be mapped through BI tools.
Textile Genesis Transparency Tool: Industry finds an urgent need for filling the transparency gap in reporting of sustainability initiatives. Collaboration signed up with Textile Genesis - a Block Chain based Digital platform for End to End Traceability of all Sustainable Fibers. Fiber to Retail Traceability using path breaking digital Fibrecoins™ technology.
Artificial Intelligence & Camera based fabric Inspection: Development of AI and camera based Automatic Inspection system for Fabric quality inspection.
Project Sensation & Hydrolittle: Three Disruptive new finishing technologies added. These impart unique hand feels & wash down appearances to fabrics at finishing stage, through mechanical & chemical wash treatments imitating a washed appearance. Such fabric treatments substitute various types garment washing / finishing process, thus, redefining denim laundry approach. Substantial environmental savings, last mile differentiation and unique aesthetics.
Anti-Viral & Anti-Bacterial Denims Yarn & Finish based alternatives that impart lasting anti-viral & anti-bacterial properties to denim. Extremely relevant in current global scenario.
Development of novel dyeing methods for Sustainable continuous reactive dyeing.

Advanced Materials Division - Santej:

Technical or engineered textiles are defined as products that are used for functional purposes. Since technical textiles are linked to hightechnology, it is imperative to indigenously produce these products. The end user requires specific requirements, and for which the cost is no longer the only parameter taken into consideration. Technical textiles products are mainly used for functional purposes because of its own intrinsic structure and performance. We are doing Research & Development in different projects at Advanced Materials Division.

Development of Melamine treated base Fabric for belt in filtration application
Design and Development of Engineered special yarn as well as fabrics for filtration application
Design and Development of High temperature resistance nonwoven pleat able filter media for hot gas filtration
Design and Development of High strength Nonwoven belt fabric for conveyor belt application using high strength woven fabric as scrim.
Design and Development of PPS base woven fabric for high temperature application like Anode cover.
Arvind has facility and expertise to develop different kind of technical and engineered yarns as well as sewing threads. Development of different yarns as well as Sewing threads as follows:
Development of combined monofilaments and spun yarns for making special belt filter fabric in filtration application.
Development of Sewing thread from continuous filament Polyester yarn for Flame Retardant application
Development of Sewing thread from Vat dyed Poly-cotton Core spun yarn for better fastness.
Development of different kind of industrial fabrics like electric arc resistance, belting and filtration fabrics for chemical, pharmaceutical, mining, power, cement and steel industries.
Arvind's technical marketing and product development team works with customers to provide complete solution.
Have developed different kind of mesh fabrics using PP, Polyester and Nylon etc. yarns for different filtration applications.
Development of Polyester base nonwoven fabric for liquid filtration
Design & Development of lower weight m-Aramid scrim to achieve required strength and Air permeability for nonwoven filter media for hot gas filtration.
Have developed different kind of filter fabrics using high end yarns like PA 66, PA 12, PBT and PA 6,10 etc.
Optimization of Micron Size of different Fabrics for Filtration Application.
Have developed different kind of fabrics for conveyor belts.
Have developed special fabric using Tri-blend (Kevlar, Panox & Kynol) for electric Arc protection.

Development of different kinds of coated fabrics for Tarpaulin, Tent, Black out, print media and other applications
Arvind has facility of spinning, weaving, processing as well as coating and expertise to supply fabrics in this segment.
Have developed High strength PVC coated fabric for Hoses, weight lifting etc.
Development of Flame Retardant PVC coated Black out fabric.
Design and development fabric base print media and optimization of coating recipe considering suitability with different inks.
Development of Foam Black out coating on Jacquard fabrics.

Arvind Composites:

Product: FRP Cross Arm (Pultruded Profile For Electrical Insulation) (i)

Pultrusion, Foaming, Coating and Fabrication Manufacturing Process:

- 102 mm X 102 mm X 9 mm / 14 mm Product Dimension:

The FRP cross-arm is a structural beam designed for bending, torque and bearing loads. The cross-arm has electrical insulation properties which are critical to performance in the electrical distribution industry especially in coastal area.

It is manufactured principally by Pultrusion, employing continuous glass fibres in the form of roving tows and non-crimp multi-axial fabrics, as a composite laminate with vinyl-ester resin matrix.

Secured product approval from client with regards to mechanical and UV resistance properties.
Planning of short commercial run for full scale product approval.

(ii) Continuous lamination Machine (FRP Corrugated sheet with top side gelcoat)

Continuous lamination Machine for FRP Sheet Making Instrument/ Machine Name

- Polser Turkey Purchase from

Cooling Tower (FRP Cladding Panels), PEB (Roofing Sheet), Construction and Insulated FRP panels for Truck Bodies and cold rooms. Target Area:

Arvind continuous lamination division has successfully developed an adaptation of the core machine and stabilized the same to incorporate gel coat on the top surface of the cladding sheet.
Advantages of the top side gel coat include the following:
1. Better surface finish.
1. Good UV and weathering resistance.
1. No fiber blooming during operating condition.
Arvind continuous laminated cladding sheets have been certified as per ASTM E84 class A requirement for excellent surface spread of flame and low smoke emission characteristics.

(iii) Product: FRP Radomes (New High width and Thin Wall Profile)

Telecommunication Industry Target Client:

Pultrusion Manufacturing Process:

Radome-640 & Radome-586 Product Dimension:

Thin Wall FRP Pultrusion is a Special Technology right starting from Tool Design and so far on a Global Scale, only very few manufacturers have been able to successfully adopt and master this Technology.

At Arvind, we have developed new high width radomes (640 mm and 586 mm width) for two different clients. In total, so far we have developed 10 different type of radome Profile for 4 different Clients. All the radomes have successfully passed the stringent dimensional, visual and mechanical requirements of our clients and have therefore been commercialized successfully.

(iv) ASTM E84 fire resistance certification for Pultrusion, hand lamination and grating products

Test Description: Surface spread of flame (horizontal orientation) and smoke emission.

Test Standard: ASTM E84.

Products: Pultruded profile, hand-layup laminate, moulded gratings.

Arvind pultruded profiles have achieved class A requirement with a groundbreaking zero flame spread index and ultra-low smoke emissions.
Arvind hand-layup laminate and gratings have also achieved class A requirement through extremely low flame spread and smoke emission characteristics.

(V) Product: FRP Heavy structural profiles for cooling tower application

Manufacturing Process: Pultrusion and fabrication.

List of products (All dimensions are in mm):

1. Square pipe 152.4x152.4x9.525.
2. Rectangular pipe 254 x 170.815 x 12.7 x 7.62.
3. Rectangular pipe 166.7x 152.4 x 6.35 / 9.525.
4. Double-web I-Beam 152.4 x 95.25 x 9.525
5. Double-web I-Beam 152.4 x 95.25 x 3.175
6. Rectangular Pipe 304.8 x 174.625 x 12.7 x 9.525
7. Drip ledge.
8. Wall panel.
These structural profiles are designed mainly for bending and bearing loads. These profiles have a higher mechanical property requirement when compared to CTI-137 standard.
The client requires that the profiles be tested in full-section. This meant that Arvind had developed custom-made testing fixtures for full section flexural, bearing and shear tests for each of the above mentioned profiles individually.
The specification demands a very high visual requirement and mechanical properties along with fire resistance. Hence, special low-filler resin formulations were employed with fire retardant additives of high effectiveness.
Also, the reinforcement content in the profiles were significantly increased to achieve the high mechanical properties.
The two double-web I-beams are first for Arvind composites and have been completely designed and developed in-house from scratch.
Arvind has successfully completed the initial machine trials and in-house testing for all the profiles and the samples have been sent to our client.
A PU-coated wall panel sample has also been prepared in-house as requested by our client and sent successfully.
Secured product approval and the go-ahead for commercialization of all the profiles from the client.

(VI) Product: Double Web Beam (DWB)

Manufacturing Process: Pultrusion

Product Dimension: Double Web Beam-610 mm X 203 mm

Double Web Beam is of the milestone new product added in Arvind product list, DWB is having higher thickness (18 mm), higher cross section area and weight per meter with the weight of 39.06 keg's /mtrs. Which contribute one of the height weight/meter profile category in Arvind product list.

Present application for DWB in the design of structures such as bridges, buildings, offshore structures and other heavy structure fabrications.

Bridges- Primary and secondary stringers and floor beams.
Building- Primary and secondary structural members for building components including floor beams roof beams, purlins, etc.
Offshore Structures Floor beams, deck beams and primary decking structure.

Samples are approved at customer side and we are excepting commercial order for the same.

2. Information regarding technology imported during the three years:

Technology imported	1. Semiautomatic Sewing Thread Machine 12 H 2. Upgradation of 50 gm sample pot dyeing machine 3. Hang Jie machine refurbishing 200gm
Year of Import	1. 2018-19 2. 2018-19 3. 2018-19
Has technology been fully absorbed?	1. Trials are going on to establish the technology 2. Established the technology successfully 3. Established the technology successfully

3. Expenditure on Research and Development

The company has separate in-house Research & Development Centre at Naroda, Santej, Khatraj & Pune locations. All Centers are involved into new products development, new process development etc. and out of four locations, Naroda, Santej & Khatraj are duly recognized and approved by Department of Scientific and Industrial Research, Ministry of Science and Technology, Government of India. The details of Capital and Revenue Expenditure incurred on Research and Development by all Centers are as under:

		` in crores
		Year ended
	March 31, 2021	March 31, 2020
Capital Expenditure
Naroda Centre	0.00	0.00
Santej Centre	0.00	3.19
Khatraj Centre	0.00	0.80
Pune Centre	0.00	0.00
Sub Total	0.00	3.99
Revenue Expenditure
Naroda Centre	2.82	3.68
Santej Centre	12.67	22.43
Khatraj Centre	1.27	1.58
Pune Centre	1.21	1.59
Sub Total	17.97	29.28
Total R & D Expenditure	17.97	33.27

C. FOREIGN EXCHANGE EARNINGS AND OUTGO:

Total Foreign Exchange used and earned:

	` in crores
	2020-21	2019-20
Total foreign exchange used	265.59	488.81
Total foreign exchange earned	2194.39	2,704.48

Annexure - E to theDirectors' Report

Information required under section 197(2) of the Companies Act, 2013 and read with Rule 5(1) of the Companies(Appointment and Remuneration of Managerial Personnel) Rules,2014

Particulars		Status
			Number of Times
The ratio of the remuneration of each director to median remuneration of the employees of the company for F Y 2020-21		If Total remuneration of the Director is considered	If total remuneration of the Director excluding Variable pay and commission is considered
	Bakul Dholakia	2.36	0.26
	Renuka Ramnath	1.82	0.10
	Dileep Choksi	2.23	0.23
	Nilesh Shah	2.21	0.26
	Arpit Patel	2.18	0.18
	Sanjay Lalbhai	91.61	48.01
	Jayesh Shah	59.27	30.93
	Punit Lalbhai	44.54	20.56
	Kulin Lalbhai	44.57	20.59
The percentage increase in remuneration of each director,	Independent Directors		%
Chief Financial Officer, Chief Executive Officer, Company Secretary or Manager, if any, in the financial year	Bakul Dholakia		7%
	Renuka Ramnath		1%
	Dileep Choksi		2%
	Vallabh Bhansali		-100%
	Samir Mehta		-100%
	Nilesh Shah		0%
	Arpit Patel Chairman and Managing		15%
	Director
	Sanjay Lalbhai		-33.00%
	Whole Time Director and
	Chief Financial Officer
	Jayesh Shah		-37.00%
	Executive Directors
	Punit Lalbhai		-38.00%
	Kulin Lalbhai		-38.00%
	Company Secretary
	Ramnik Bhimani		-9.00%
The percentage increase in the median remuneration of employees in the financial year			0.00%
The number of permanent employees on the rolls of company			24774
Average percentile increase already made in the salaries of employees other than the managerial personnel in the last financial year and its comparison with the percentile increase in the managerial remuneration and justification thereof and point out if there are any exceptional circumstances for increase in the managerial remuneration	Average increase for Key Managerial Personnel is ( 35.24%) and for other employees was about remuneration of key Managerial Personnel.	0.75%. There is no	exceptional increase in
Affirmation that the remuneration is as per the remuneration policy of the company	It is affirmed that the remuneration is as per the Remuneration Policy of the Company

Your Directors present the Company's Report on Corporate Governance for the year ended on 31st March 2021.

1. COMPANY'S PHILOSOPHY ON CODE OF GOVERNANCE

Corporate governance at Arvind Limited ("Arvind") is a value-based framework to manage our Company affairs in a fair and transparent manner. As a responsible corporation, we use this framework to maintain accountability in all our affairs and employ democratic and open processes. We have evolved guidelines and best practices over the years to ensure timely and accurate disclosure of information regarding our financials, performance, leadership and governance of the Company.

Our corporate governance philosophy is based on the following principles:

Satisfy the spirit of the law and not just the letter of the law. Corporate governance standards should go beyond the law.
Be transparent and maintain a high degree of disclosure levels.
Make a clear distinction between personal conveniences and corporate resources.
Communicate externally, in a truthful manner, about how the Company is run internally.
Have a simple and transparent corporate structure driven solely by business needs.
The Management is the trustee of the shareholders' capital and not the owner.

The Board of Directors ('the Board') is at the core of our corporate governance practice and oversees how the Management serves and protects the long-term interests of all our stakeholders. We believe that an active, well-informed and independent Board is necessary to ensure the highest standards of Corporate Governance. The majority of our Board, 5 out of 9, are independent members. Given below is the report on Corporate Governance at Arvind.

2. BOARD OF DIRECTORS

(i) Composition of the Board:

The Board has 9 Directors, comprising of Chairman and Managing Director, Director and Group Chief Financial Officer, 2 Executive Directors and 5 Non-Executive Directors. The Non-Executive Directors who are also Independent Directors are leading professionals from varied fields who bring in independent judgment to the Board's discussions and deliberations.

Name of Executive/Non-Executive/Independent Director Director		No. of Directorships held (Including Arvind Ltd.)*		Committee(s) position (Including Arvind Ltd.)**
			Member	Chairman
Mr. Sanjay Lalbhai	Chairman & Managing Director	5	2	1
Mr. Punit Lalbhai	Executive Director 10		1	1
Mr. Kulin Lalbhai	Executive Director 6		2	1
Mr. Jayesh Shah	Director & Group Chief Financial Officer	10	2	0
Dr. Bakul Dholakia	Independent Director	4	4	1
Ms. Renuka Ramnath	Independent Director	14	1	1
Mr. Dileep Choksi	Independent Director	11	8	3
Mr. Nilesh Shah	Independent Director	4	5	0
Mr. Arpit Patel	Independent Director	3	3	2

The following is the Composition of the Board as at 31st March 2021:

*All the Companies have been considered excluding Companies incorporated under Section 8 of the Companies Act, 2013 (earlier Section 25 of the Companies Act, 1956) and Companies incorporated outside India.

**Only Audit Committee and Stakeholders' Relationship Committee have been considered as per Regulation 26 of the SEBI (LODR) Regulations, 2015.

Sr. No.	Name of the Director	Name of Listed Company	Category of Directorship
1	Mr. Sanjay Lalbhai	The Anup Engineering Limited	Chairman and Non-Executive Director
		Arvind SmartSpaces Limited	Chairman and Non-Executive Director
		Arvind Fashions Limited	Chairman and Non-Executive Director
2	Mr. Punit Lalbhai	The Anup Engineering Limited	Non-Executive Director
		Arvind Fashions Limited	Non-Executive Director
3	Mr. Kulin Lalbhai	Zydus Wellness Limited	Non-Executive Independent Director
		Arvind SmartSpaces Limited	Non-Executive Director
		Arvind Fashions Limited	Non-Executive Director
4	Mr. Jayesh Shah	-	-
5	Dr. Bakul Dholakia	Gujarat State Petronet Limited	Independent Director
		Ashima Limited	Independent Director
6	Ms. Renuka Ramnath	Tata Communications Limited	Chairperson (Independent Director)
		TV18 Broadcast Limited	Non-Executive Independent Director
		PVR Limited	Non-Executive Non Independent Director
7	Mr. Dileep Choksi	Deepak Nitrite Limited	Non-Executive Independent Director
		AIA Engineering Limited	Independent Director
		Swaraj Engines Limited	Non-Executive Independent Director
		ICICI Prudential Life Insurance Company Limited	Independent Director
8	Mr. Nilesh Shah	Arvind Fashions Limited	Non-Executive Independent Director
9	Mr. Arpit Patel	The Anup Engineering Limited	Independent Director

Names of the Listed Entities where the person is a Director and the category of Directorship:

(ii) Key Board Qualifications, Expertise and Attributes:

Name of the Director	Areas of Expertise
Mr. Sanjay S. Lalbhai	• Strategic thinking.
	• Track-record of spotting disruptive opportunities ahead of time.
	• Ability to take calibrated risks.
	• Sales and marketing including an understanding of consumer markets in India, US and Europe.
• International business experience covering operations in new geographies.
• Innovation management to ensure continuing relevance of Company's offerings under changing market conditions.
	• Manufacturing and supply chain management skills including running production facilities.
Mr. Punit S. Lalbhai	• Expertise in new materials and sustainable technologies
	• Sales and marketing including an understanding of consumer markets in India, US and Europe.
	• International business experience covering operations in new geographies.
	• Innovation management to ensure continuing relevance of Company's offerings under changing market conditions.
Mr. Kulin S. Lalbhai	• Expert in retail technologies and digital transformation
	• Sales and marketing including an understanding of consumer markets in India, US and Europe.
	• International business experience covering operations in new geographies.
	• Innovation management to ensure continuing relevance of Company's offerings under changing market conditions.
Mr. Jayesh K. Shah	• Sales and marketing including an understanding of consumer markets in India, US and Europe.
	• General management and financial management skills including mergers and acquisitions, legal and regulatory management, industrial relations and overall stakeholder management.

Name of the Director	Qualifications, Expertise and Attributes
Dr. Bakul Dholakia	• Expertise in micro and macro – economy, General management and financial management skills including mergers and acquisitions, legal and regulatory management, industrial relations and overall stakeholder management.
Ms. Renuka Ramnath	• Expertise in Indian consumer and retail markets and e-commerce.
	• General management and financial management skills including mergers and acquisitions, legal and regulatory management.
Mr. Dileep Choksi	• General management and financial management skills including mergers and acquisitions, legal and regulatory management, industrial relations and overall stakeholder management.
Mr. Nilesh Shah	• Expertise in macro-economy.
	• Shareholder value creation.
	• General management and financial management skills including mergers and acquisitions, legal and regulatory management.
Mr. Arpit Patel	• General management and financial management skills including mergers and acquisitions, legal and regulatory management, industrial relations and overall stakeholder management.

(iii) Board Agenda:

The annual calendar of Board and Committee Meetings is agreed upon at the beginning of each year. Meetings are governed by a structured Agenda and a Board Member may bring up any matter for consideration of the meeting in consultation with the Chairman. Agenda papers are generally circulated to the Board Members at least 7 working days in advance. In addition, for any business exigencies the resolutions are passed by circulation and later places at the subsequent Board or Committee Meeting for ratification/ approval. Detailed presentations are made at the meetings on all major issues to enable the Board to take informed decisions.

Invitees & Proceedings:

Apart from the Board Members, the Company Secretary, the Heads of Manufacturing and Marketing are invited to attend all the Board Meetings. Other senior management executives are called as and when necessary, to provide additional inputs for the matters being discussed by the Board. The CFO makes presentation on the quarterly and annual operating & financial performance and on annual operating & capex budget. The Managing Director and other senior executives make presentations on capex proposals & progress, operational health & safety and other business issues.

Support and Role of Company Secretary:

The Company Secretary is responsible for convening the Board and Committee meetings, preparation and distribution of agenda and other documents and recording of the minutes of the meetings. He acts as interface between the Board and the Management and provides required assistance to the Board and the Management.

(iv) Meetings and Attendance:

During the year, the Board of Directors met 4 times on 27th June, 2020, 31st August, 2020, 29th October, 2020 and 4th February, 2021. The gap between two Board Meetings was within the maximum time gap prescribed under the Companies Act, 2013, the SEBI (LODR) Regulations, 2015 and Circulars issued by Ministry of Corporate affairs and SEBI. The Attendance of Directors at these Board Meetings and at the last Annual General Meeting was as under:

Sr. No.	Name of Director	Number of Board Meetings held during the period when the Director was on the Board	Number of Board Meetings attended	Whether present at the previous AGM
1	Mr. Sanjay Lalbhai	4	4	Yes
2	Mr. Punit Lalbhai	4	4	Yes
3	Mr. Kulin Lalbhai	4	4	Yes
4	Mr. Jayesh Shah	4	4	Yes
5	Dr. Bakul Dholakia	4	4	Yes
6	Ms. Renuka Ramnath	4	3	Yes
7	Mr. Dileep Choksi	4	4	Yes
8	Mr. Nilesh Shah	4	4	Yes
9	Mr. Arpit Patel*	4	4	Yes

(v) Independent Directors:

Independent Directors play an important role in the governance processes of the Board. They bring to bear their expertise and experience on the deliberations of the Board. This enriches the decision making process at the Board with different points of view and experiences and prevents conflict of interest in the decision making process.

None of the Independent Directors are holding the position of Whole-time Director/Managing Director in any listed company and serving as an Independent Director in more than 3 listed companies at the same time. No person has been appointed or continuing as an Alternate Director for an Independent Director of the Company.

Based on the disclosures received from all the Independent Directors and also in the opinion of the Board, the Independent Directors fulfils the conditions specified in SEBI (LODR) Regulations, 2015 and are independent of the management.

During the year under review, the Independent Directors met on February 4, 2021, interalia:

To review the performance of the Non-Independent Directors (Executive Directors);
To review the performance of the Board of the Company as a whole;
To review the performance of Chairman of the Company taking into account the views of Executive Directors on the same;
To assess the quality, quantity and timeliness of flow of information between the Company management and the Board.

They expressed satisfaction at the robustness of the evaluation process, the Board's freedom to express views on the business transacted at the Meetings and the openness with which the Management discussed various subject matters on the agenda of meetings.

(vi) Disclosure of relationships between the Directors inter-se:

Except between Mr. Sanjay Lalbhai (Chairman & Managing Director) and his two sons viz. Mr. Punit Lalbhai (Executive Director) and Mr. Kulin Lalbhai (Executive Director), there is no relationship between the Directors inter-se.

(vii) Number of shares and convertible instruments held by Non-Executive Directors:

Name	Category	Number of equity shares held
Dr. Bakul Dholakia	Non-Executive Independent Director	28200
Ms. Renuka Ramnath	Non-Executive Independent Director	295
Mr. Nilesh Shah	Non-Executive Independent Director	211
Mr. Arpit Patel	Non-Executive Independent Director	-
Mr. Dileep Chokshi	Non-Executive Independent Director	-

During the year under review, the Company has not issued any Convertible Instruments.

(viii) Familiarisation Programme for Independent Director:

On appointment of an individual as Director, the Company issues a formal Letter of Appointment to the concerned director, setting out in detail, the terms of appointment, duties and responsibilities. Each newly appointed Independent Director is taken through a formal familiarisation program including the presentation from the Chairman & Managing Director providing information relating to the Company, Denim/ Shirtings/ Branded Garments Business Divisions, industry, business model of the Company, geographies in which Company operates, etc. The programme also provides awareness of the Independent Directors on their roles, rights, responsibilities towards the Company. Further, the Familiarisation Programme also provides information relating to the financial performance of the Company and budget and control process of the Company.

The details of familiarisation program imparted to Independent Directors is also posted on the Company's Website at https://www.arvind.com/sites/default/files/field_policy_file/Familiarisation%20Programme%20for%20IDs.pdf

(ix) Code of Conduct for Directors and Senior Management Personnel:

In terms of provisions of the SEBI (LODR) Regulations, 2015, the Board of Directors of the Company has laid down a Code of Conduct for all Board Members and Senior Management Personnel of the Company. The said Code of Conduct has been posted on the website of the Company. The Board Members and Senior Management Personnel of the Company have affirmed compliance with the Code. The Chairman & Managing Director of the Company has given a declaration to the Company that all the Board Members and Senior Management Personnel of the Company have affirmed compliance with the Code.

(x) Prohibition of Insider Trading Code:

The codes viz. "Code of Conduct for Prohibition of Insider Trading" and the "Code of Practices & Procedures for Fair Disclosure of Unpublished Price Sensitive Information" allows the formulation of a trading plan subject to certain conditions and requires preclearance for dealing in the Company's shares. It also prohibits the purchase or sale of Company's shares by the Designated Persons, while in possession of unpublished price sensitive information in relation to the Company and during the period when the Trading Window is closed.

(xi) Committees of the Board:

The Board of Directors has constituted 6 Committees of the Board viz.

Audit Committee
Nomination and Remuneration Committee
Stakeholders' Relationship Committee
Risk Management Committee
Corporate Social Responsibility Committee
Management Committee

The Board determines the terms of reference of these Committees from time to time. Meetings of these Committees are convened by the respective Committee Chairman/ Company Secretary. At each Board Meeting, minutes of these Committees are placed before the Directors for their perusal and noting.

3. AUDIT COMMITTEE

The Audit Committee of the Company comprises of 5 members out of which 4 members are Non-Executive Independent Directors. The Committee members are professionals having requisite experience in the fields of Finance and Accounts, Banking and Management.

(i) Terms of reference of the committee:

1. Oversight of the Company's financial reporting process and the disclosure of its financial information to ensure that the financial statements are correct, sufficient and credible;
1. Recommendation for appointment, remuneration and terms of appointment of auditors of the Company;
1. Approval of payment to Auditors for any other services rendered by the Auditors of the Company;
1. Reviewing, with the management, the annual financial statements and auditor's report thereon before submission to the Board for approval, with particular reference to:
a) Matters required to be included in the Director's Responsibility Statement to be included in the Board's report in terms of clause (c) of sub-section 3 of section 134 of the Companies Act, 2013;
b) Changes, if any, in accounting policies and practices and reasons thereto;
c) Major accounting entries involving estimates based on the exercise of judgment by management;
d) Significant adjustments made in the financial statements arising out of audit findings;
e) Compliance with listing and other legal requirements relating to financial statements;
f) Disclosure of any related party transactions; and
g) modified opinion(s) in the draft audit report.
1. Reviewing, with the management, the quarterly financial statements before submission to the Board for approval;
1. Reviewing, with the management, the statement of uses/ application of funds raised through an issue (public issue, rights issue, preferential issue, etc.), the statement of funds utilized for purposes other than those stated in the offer document/ prospectus/ notice and the report submitted by the monitoring agency monitoring the utilisation of proceeds of a public or rights issue, and making appropriate recommendations to the Board to take up steps in this matter;
1. Reviewing and monitoring the auditor's independence and performance and effectiveness of audit process;
1. Formulating a policy on related party transactions, which shall include materiality of related party transactions;
1. Approval or any subsequent modification of transactions of our Company with related parties;
1. Scrutiny of inter-corporate loans and investments;
1. Valuation of undertakings or assets of our Company, wherever it is necessary;
1. Evaluation of internal financial controls and risk management systems;
1. Reviewing, with the management, performance of statutory and internal auditors, adequacy of the internal control systems;
1. Reviewing the adequacy of internal audit function, if any, including the structure of the internal audit department, staffing and seniority of the official heading the department, reporting structure coverage and frequency of internal audit;
1. Discussion with internal auditors of any significant findings and follow up there on;
1. Reviewing the findings of any internal investigations by the internal auditors into matters where there is suspected fraud or irregularity or a failure of internal control systems of a material nature and reporting the matter to the Board;
1. Discussion with statutory auditors before the audit commences, about the nature and scope of audit as well as post-audit discussion to ascertain any area of concern;
1. To look into the reasons for substantial defaults in the payment to the depositors, debenture holders, shareholders (in case of

non-payment of declared dividends) and creditors;

1. To review the functioning of the whistle blower mechanism;
1. Approval of the appointment of the CFO of the Company (i.e., the whole-time Finance Director or any other person heading the finance function or discharging that function) after assessing the qualifications, experience and background, etc. of the candidate;
1. to review the utilization of loans and/ or advances from/ investment by the holding company in the subsidiary exceeding rupees 100 crore or 10% of the asset size of the subsidiary, whichever is lower including existing loans/ advances/ investments existing as on the date of coming into force of this provision;
1. to review the compliance with the provisions of Regulation 9A of Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015 at least once in a financial year and to verify that the systems for internal control are adequate and are operating effectively; and
1. to carry out any other function as is mentioned in the terms of reference of the Audit Committee.

Audit Committee shall mandatorily review the following information:

1. Management discussion and analysis of financial condition and results of operations;
1. Statement of significant related party transactions (as defined by the Audit Committee), submitted by the management of our Company;
1. Management letters/ letters of internal control weaknesses issued by the statutory auditors of our Company;
1. Internal audit reports relating to internal control weaknesses;
1. The appointment, removal and terms of remuneration of the chief internal auditor; and
1. Statement of deviations:
a) quarterly statement of deviation(s) including report of monitoring agency, if applicable, submitted to the stock exchanges in terms of sub-regulation (1) of Regulation 32 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015; and
b) annual statement of funds utilized for purposes other than those stated in the offer document/ prospectus/ notice in terms of sub-Regulation (7) of Regulation 32 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

(ii) The Composition of the Committee as at 31st March 2021 and the details of Members participation at the Meetings of the Committee are as under:

During the year, 4 Audit Committee Meetings were held on 27th June, 2020, 31st August, 2020, 29th October, 2020 and 4th February, 2021. The Attendance of Members at meetings was as under:

1	Mr. Arpit Patel	Chairman	4	4
2	Mr. Dileep Choksi	Member	4	4
3	Mr. Jayesh Shah	Member	4	4
4	Dr. Bakul Dholakia	Member	4	4
5	Mr. Nilesh Shah	Member	4	4

The representatives of Internal and Statutory Auditors are invitees to Audit Committee meetings and the Company Secretary acts as the Secretary of the Audit Committee.

4. NOMINATION AND REMUNERATION COMMITTEE

The Nomination and Remuneration Committee of the Company comprises of 3 Directors viz. Dr. Bakul Dholakia, Ms. Renuka Ramnath and Mr. Dileep Choksi, all of whom are Non-Executive Independent Directors. Dr. Bakul Dholakia acts as a Chairman of the Committee.

(i) Terms of reference of the committee:

1. Formulation of the criteria for determining qualifications, positive attributes and independence of a director and recommend to the Board a policy relating to the remuneration of the directors, key managerial personnel and other employees;
1. Formulation of criteria for evaluation of independent directors and the Board;
1. Devising a policy on Board diversity;
1. Identify persons who qualify to become directors or who may be appointed in senior management in accordance with the criteria laid down, recommend to the Board their appointment and removal;

1. Specify the manner for effective evaluation of performance of Board, its committees and individual directors to be carried out either by the Board, by the Nomination and Remuneration Committee or by an independent external agency and review its implementation and compliance;
1. Whether to extend or continue the term of appointment of the independent director, on the basis of the report of performance evaluation of independent directors; and
1. Recommend to the board, all remuneration, in whatever form, payable to senior management.
(ii) The Composition of the Committee as at 31st March 2021 and the details of Members participation at the Meetings of the Committee are as under:

During the year, 1 Nomination and Remuneration Committee Meeting was held on 31st August, 2020 The Attendance of Members at meeting was as under:

1	Dr. Bakul Dholakia	Chairman	1	1
2	Mr. Dileep Choksi	Member	1	1
3	Ms. Renuka Ramnath	Member	1	1

(iii) Evaluation of the Board's Performance:

During the year, the Board adopted a formal mechanism for evaluating its performance as well as that of its Committees and individual Directors. The exercise was carried out through a structured evaluation process covering various aspects of the Boards functioning such as composition of the Board & Committees, experience & competencies, performance of specific duties & obligations, governance issues etc. Separate exercise was carried out to evaluate the performance of individual Directors including the Board Chairman who were evaluated on parameters such as attendance, contribution at the meetings and otherwise, independent judgement, safeguarding of minority shareholders interest etc.

The evaluation of the Independent Directors was carried out by the entire Board and that of the Chairman and the Non-Independent Directors were carried out by the Independent Directors.

The Directors were satisfied with the evaluation results, which reflected the overall engagement of the Board and its Committees with the Company.

(iv) Remuneration of Directors:

Remuneration of Executive Directors is recommended by the Nomination and Remuneration Committee and approved by the Board of Directors and the Shareholders of the Company.

The remuneration of Non-Executive Directors is determined by the Board and is also approved by the Shareholders in General Meeting. Non-Executive Directors are paid Sitting Fees of ` 10,000/- for every meeting of Board of Directors or Committee attended by them. Apart from this, Non-Executive Directors [other than Managing Director and Whole Time Director(s)] are entitled for commission within the limit of 1% of the net profits of the Company per annum.

Details of remuneration to all Directors for the Financial Year 2020-21 are as under:

| | | Salary
() | Perquisites &<br>Allowances<br>() | Retirement &
Leave Benefits
() | Sitting Fees<br>() | Commission/
Bonus (`) | Stock Option |
|---|--------------------|---------------|------------------------------------|---------------------------------------|---------------------|--------------------------|--------------|
| 1 | Mr. Sanjay Lalbhai | 78,12,000 | 46,54,338 | 22,79,210 | -- | -- | -- |
| 2 | Mr. Punit Lalbhai | 31,05,000 | 27,58,313 | 12,65,549 | -- | -- | -- |
| 3 | Mr. Kulin Lalbhai | 31,05,000 | 27,58,313 | 12,66,277 | -- | -- | -- |
| 4 | Mr. Jayesh Shah | 52,11,000 | 30,34,501 | 13,27,163 | -- | -- | 42,18,510 |
| 5 | Dr. Bakul Dholakia | -- | -- | -- | 1,60,000 | 7,50,000 | -- |
| 6 | Ms. Renuka Ramnath | -- | -- | -- | 50,000 | 6,50,000 | -- |
| 7 | Mr. Dileep Choksi | -- | -- | -- | 1,10,000 | 7,50,000 | -- |
| 8 | Mr. Nilesh Shah | -- | -- | -- | 1,00,000 | 7,50,000 | -- |
| 9 | Mr. Arpit Patel | -- | -- | -- | 90,000 | 7,50,000 | -- |

None of the Directors of the Company/ Key managerial Personnel had any pecuniary relationship with the Company during the year.

Stock option details, if any and whether issued at a discount as well as the period over which accrued and over which exercisable:

The details of stock options granted to the eligible employees and directors under Arvind Limited - Employee Stock Option Scheme 2008 (ESOP-2008) are provided in the Directors' Report of the Company.

Please refer Point No. 6 - Employee Stock Option Scheme in Directors' Report.

5. STAKEHOLDERS' RELATIONSHIP COMMITTEE

The Stakeholders' Relationship Committee has 3 Members comprising of 1 Non-Executive Independent Director and 2 Executive Directors. Dr. Bakul Dholakia, Non-Executive Independent Director, acts as a Chairman of the Committee.

(i) Terms of reference of the Committee:

1. Resolve the grievances of the security holders of the Company including complaints related to transfer/transmission of shares, non-receipt of annual report, non-receipt of declared dividends, issue of new/duplicate certificates, general meetings etc.;
1. Review of measures taken for effective exercise of voting rights by shareholders;
1. Review of adherence to the service standards adopted by the Company in respect of various services being rendered by the Registrar & Share Transfer Agent; and
1. Review of the various measures and initiatives taken by the listed entity for reducing the quantum of unclaimed dividends and ensuring timely receipt of dividend warrants/annual reports/statutory notices by the shareholders of the Company.

(ii) The Composition of the Committee as at 31st March 2021 and the details of Members participation at the Meetings of the Committee are as under:

During the year, 3 Stakeholders' Relationship Committee Meetings were held on 31st August 2020, 29th October 2020 and 4th February 2021. The Attendance of Members at meetings was as under:

Sr. No.	Name of Member	Position	Number of Meetings held during the year	Number of Meetings attended
	Dr. Bakul Dholakia			3
	Mr. Sanjay Lalbhai
	Mr. Jayesh Shah

(iii) Name and Designation of Compliance Officer:

R. V. Bhimani

Company Secretary

(iv) Details of Complaints/ Queries received and redressed during 1st April, 2020 to 31st March, 2021 are as follows:

Number of shareholders'	Number of shareholders'	Number of shareholders'	Number of shareholders'
complaints pending	complaints received	complaints redressed	complaints pending
at the beginning of the year	during the year	during the year	at the end of the year
Nil	7	6	1

All the complaints/ queries have been redressed to the satisfaction of the complainants and only 1 complaint/ query was pending at the end of the year.

6. RISK MANAGEMENT COMMITTEE

The Risk Management Committee has 4 Members comprising of 1 Executive Director viz. Mr. Jayesh K. Shah and 3 Non-Executive Independent Directors viz. Dr. Bakul Dholakia, Mr. Dileep Choksi and Mr. Nilesh Shah.

(i) Terms of reference of the Committee:

1. to review and assess the risk management system and policy of the Company from time to time and recommend for amendment or modification thereof;
1. to frame, devise, monitor and review the risk management plan and policy of the Company;
1. to review and recommend potential risk involved in any new business plans and processes; and
1. any other similar functions as may be laid down by Board from time to time and such other functions specifically cover cyber security.

(ii) The Composition of the Committee as at 31st March 2021 and the details of Members participation at the Meetings of the Committee are as under:

During the year, 1 Risk Management Committee Meeting was held on 27th June, 2020. The Attendance of Members at meeting was as under:

Sr. No.	Name of Member	Position	Number of Meetings held during the y ear	Number of Meetings attended
1	Mr. Dileep Choksi	Member	1	1
2	Dr. Bakul Dholakia	Member	1	1
3	Mr. Jayesh Shah	Member	1	1
4	Mr. Nilesh Shah	Member	1	1

7. CORPORATE SOCIAL RESPONSIBILITY COMMITTEE

The Corporate Social Responsibility Committee has 4 Members comprising of 1 Non-Executive Independent Director and 3 Executive Directors.

(i) Terms of reference of the Committee:

1. Formulate and recommend to the Board, a Corporate Social Responsibility Policy which shall indicate the activities to be undertaken by the company as specified in Schedule VII to the Companies Act, 2013;
1. To finalise a list of CSR projects or programs or initiatives proposed to be undertaken periodically including the modalities for their execution / implementation schedules and to review the same from time to time in accordance with requirements of section 135 of the Companies Act, 2013;
1. Recommend the amount of expenditure to be incurred on the activities referred to in clause (a);
1. Monitor the Corporate Social Responsibility Policy of the company from time to time;
1. Review the CSR Report and other disclosures on CSR matters for the approval of the Board for their inclusion in the Board Report.

(ii) Composition of the Committee as at 31st March 2021 and the details of Members participation at the Meetings of the Committee are as under:

Sr. No.	Name of Member	Position	Number of Meetings held during the year	Number of Meetings attended
1	Dr. Bakul Dholakia	Chairman	2	2
2	Mr. Sanjay Lalbhai	Member	2	2
3	Mr. Punit Lalbhai	Member	2	2
4	Mr. Jayesh Shah	Member	2	2

During the year, 2 Meetings were held on 27th June 2020 and 31st August 2020.

8 MANAGEMENT COMMITTEE

The Management Committee consists of 4 Directors, all of whom are Executive Directors.

(i) Role:

The Management Committee's primary role is to look after the day-to-day business activities of the Company within Board approved direction/ framework. The Committee meets frequently, as and when need arises, to transact matters within the purview of its terms of reference.

(ii) The Composition of the Committee as at 31st March 2021 and the details of Members participation at the Meetings of the Committee are as under:

During the year, 22 Management Committee Meetings were held on various dates. The Attendance of Members at meetings was as under:

Sr. No.	Name of Member	Position	Number of Meetings held during the year	Number of Meetings attended
1	Mr. Sanjay Lalbhai	Member	22	21
2	Mr. Punit Lalbhai	Member	22	21
3	Mr. Kulin Lalbhai	Member	22	21
4	Mr. Jayesh K. Shah	Member	22	22

9 INFORMATION ON GENERAL BODY MEETINGS

(i) The last 3 Annual General Meetings of the Company were held as under:

25th September, 2020	11:00 AM	The Registered Office was the deemed venue of the meeting as the meeting was held through
		Video Conference (VC)/Other Audio Visual Means (OAVM)
6th August, 2019	09:30 AM	J.B. Auditorium, Ahmedabad Management Association, ATIRA Campus,
		Dr. Vikram Sarabhai Marg, Ahmedabad – 380015
30th August, 2018	09:30 AM	J.B. Auditorium, Ahmedabad Management Association, ATIRA Campus,
		Dr. Vikram Sarabhai Marg, Ahmedabad – 380015

(ii) Special Resolutions passed in the last 3 Annual General Meetings:

2019-20

1. Special Resolution for payment of commission to Non-executive Directors for a period of 5 years from 1st April 2020 to 31st March 2025 under provision of Section 197 and 198 of the Companies Act,2013.
1. Special Resolution for reappointment of Ms. Renuka Ramnath (holding DIN 00147182), as an Independent Director of the Company to hold office for a second term of five consecutive years upto July 31, 2024 on the Board of the Company.
1. Special Resolution for reappointment of Dr. Bakul H. Dholakia (holding DIN 00005754), as an Independent Director of the Company to hold office for a second term of five consecutive years upto July 31, 2024 on the Board of the Company.
1. Special Resolution for reappointment of Mr. Nilesh Shah (holding DIN 01711720),as an Independent Director of the Company to hold office for a second term of five consecutive years upto May 5, 2025 on the Board of the Company.
1. Special Resolution for alteration of Memorandum of Association of the Company by inserting new Sub Clause (2)(rr),after existing Clause (2)(r).
1. Special Resolution for approval of offer or invitation to subscribe to Non-Convertible Debentures on private placement basis upto Rs. 150 crores.

2018-19

1. Special Resolution for Mr. Jayesh K. Shah (holding DIN 00008349) as Director and Group Chief Financial Officer of the Company for a period of five years from 1st October 2019 to 30th September 2024 and remuneration payable to him.
1. Special Resolution for reappointment of Mr. Dileep C. Choksi (holding DIN 00016322), as an Independent Director of the Company to hold office for a second term of five consecutive years upto May 11, 2024 on the Board of the Company.
1. Special Resolution for approval of offer or invitation to subscribe to Non-Convertible Debentures on private placement basis upto ` 300 crores.

2017-18

1. Special Resolution for approval of offer or invitation to subscribe to Non-Convertible Debentures on private placement basis upto ` 500 crores.
1. Special Resolution for the amendment to the "Arvind Limited Employee Stock Option Scheme 2008".

(iii) Extraordinary General Meeting (EGM):

During the last 3 years, there was no Extra Ordinary General Meeting held.

(iv) Details of Resolution Passed through Postal Ballot, the person who conducted the Postal Ballot Exercise and details of the voting pattern:

The Company had sought approval of the shareholders through notice of Postal Ballot dated 25th January 2021 seeking approval of the members to approve the request for reclassification of "AML Employees' Welfare Trust" from the 'Promoter Group' to the 'Public' Category by way of an Ordinary resolution. The aforesaid resolution was duly passed and the results of postal ballot/e-voting were announced on March 2, 2021. Mr. Hitesh Buch, Proprietor of M/s. Hitesh Buch & Associates, Practicing Company Secretaries, was appointed as the Scrutinizer to scrutinize the postal ballot and remote e-voting process in a fair and transparent manner.

Item No. of the Notice and type	Mode of	In favour of the resolution		Against the resolution			Abstained/ Invalid
of Resolution	Voting	No. of members	No. of Shares/ votes	%	No. of members	No. of Shares/ votes	%	No. of Shares/ votes
Item No. 1	Remote	583	15,21,21,338	98.49	51	23,33,779	1.51	63,27,317
Ordinary	e-voting
Resolution:	Physical	N.A.	N.A.	N.A.	N.A.	N.A.	N.A.	N.A.
To approve request	postal ballot
for reclassification
of a shareholder
from the
'Promoter
Group' to the
'Public'
Category
	Total	583	15,21,21,338	98.49	51	23,33,779	1.51	63,27,317

The postal ballot was conducted in accordance with the provisions contained in Section 108/110 of the Companies Act, 2013, read with Rule 20 and 22 of the Companies (Management and Administration) Rules, 2014 as amended read with Regulation 44 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and General Circular No. 14/2020 dated 8th April, 2020, General Circular No. 17/2020 dated 13th April, 2020, General Circular No. 22/2020 dated 15th June, 2020, General Circular No. 28/2020 dated 17th August, 2020, General Circular No. 33/2020 dated 28th September, 2020 and General Circular No. 39/2020 dated 31st December, 2020 ("General Circulars") issued by the Ministry of Corporate Affairs (the "MCA"). The shareholders were provided the facility to vote through evoting. The postal ballot notice was sent to shareholders in electronic form to the email addresses, where available. The Company also published a notice in the newspapers in accordance with the requirements under the Companies Act, 2013. Shareholders holding equity shares as on the cut-off date casted their votes through e-voting during the voting period fixed for this purpose. After completion of scrutiny of votes, the scrutinizer submitted his report to the Chairman and the results of voting by postal ballot were announced within 48 hours of conclusion of the voting period. The results were displayed on the website of the Company (www.arvind.com), and communicated to the Stock Exchanges, Depositories, and Registrar and Share Transfer Agents. The resolution was passed by the requisite majority and was deemed to have been passed on the last date specified for e-voting.

10. MEANS OF COMMUNICATION

(i) The Quarterly, half-yearly and yearly financial Results are published in the Financial Express All India Editions and Financial Express Gujarati Edition of Ahmedabad and are also posted on the Company's website at www.arvind.com.
(ii) Information released to the press at the time of declaration of results is also sent to all Stock Exchanges where the shares of the Company are listed for the benefit of investors. Moreover, the Company's web-site hosts a special page giving information which investors usually seek.
(iii) Presentations made to institutional investors/analysts are posted on the Company's web site at www.arvind.com.

11. GENERAL SHAREHOLDER INFORMATION

(i) Annual General Meeting:

Date	18th August, 2021
Time	11:00 a.m.
Mode	Video conferencing or through Other Audio Visual Means

(ii) Financial Calendar (Tentative):

The Financial Year of the Company is for a period of 12 months from 1st April to 31st March.

First quarter results	First week of August, 2021
Second quarter results	Last week of October, 2021
Third quarter results	Last week of January, 2022
Fourth quarter results / Year end results	Second week of May, 2022

(iii) Book Closure: 12th August, 2021 to (both days inclusive) 18th August, 2021
(iv) Dividend Payment Date: N.A.
(v) Listing on Stock Exchanges:
(A) Equity Shares

	Code/Symbol

National Stock Exchange of India Ltd.		Exchange Plaza, C-1, Block G, Bandra Kurla Complex, Bandra (E), Mumbai - 400 051

(B) Non-Convertible Debentures

The Unsecured Listed Rated Redeemable Non-Convertible Debentures issued on Private Placement basis by the Company are listed on the Wholesale Debt Market (WDM) of BSE Limited.

The Company has, on 03.06.2020, allotted 8.50% - 750 Rated, Listed, Secured, Redeemable, Non-Convertible Debentures (NCDs) of the face value of ` 10,00,000/- each, for cash at par, aggregating to 75 crores on private placement basis and the said NCDs are listed on the Wholesale Debt Market Segment of BSE Limited.

Scrip Code:

959583:AL-8.5%-2-6-23-PVT

Debenture Trustee (for privately placed debentures):

Axis Trustee Services Limited Axis House, Bombay Dyeing Mills Compound Pandurang Budhkar Marg, Worli, Mumbai - 400 025 Phone: +91 22 6226 0054/ 50 Email: [email protected] Website: www.axistrustee.com

The Company has paid Annual Listing Fees for the year 2021-2022 to the above Stock Exchanges.

(vi) Market Price Data:

The market price data and volume of the company's share traded in the BSE Limited and the National Stock Exchange of India Limited during the Financial Year 2020-21 were as under:

		Share price on BSE*			Volume	Share price on NSE				Volume
	(`) \| (`)				(`) \| (`)
Apr-20	29.65	19.5	33887.25	27500.79	448875023	29.4	19.5	9889.05	8055.8	28563140
May-20	26.25	19.9	32845.48	29968.45	615552431	26.25	19.9	9598.85	8806.75	53740751
Jun-20	39.8	26.8	35706.55	32348.1	550678926	39.8	26.7	10553.15	9544.35	100625029
Jul-20	36.6	28.4	38617.03	34927.2	191593275	36.6	28.35	11341.4	10299.6	37930350
Aug-20	37.25	27.55	40010.17	36911.23	569633246	37.25	27.5	11794.25	10882.25	72142335
Sep-20	36	28.7	39359.51	36495.98	556776714	35.7	28.65	11618.1	10790.2	52250694
Oct-20	37.5	32.55	41048.05	38410.2	314394445	37.7	32.65	12025.45	11347.05	40052696
Nov-20	43.5	32.2	44825.37	39334.92	320814508	43.55	32.85	13145.85	11557.4	46544796
Dec-20	53.25	39.6	47896.97	44118.1	667526998	53.25	39.55	14024.85	12962.8	64350318
Jan-21	58	46.85	50184.01	46160.46	784058997	57.9	46.8	14753.55	13596.75	49041123
Feb-21	83.35	51.15	52516.76	46433.65	799680307	83.4	51.1	15431.75	13661.75	84525090
Mar-21	84.2	60	51821.84	48236.35	226104462	84.5	63.1	15336.3	14264.4	23600973

Nifty

(vii) Registrar And Transfer Agent:

Link Intime India Private Limited 5th Floor, 506 to 508, Amarnath Business Centre-1 (abc-1), Beside Gala Business Centre (GBC), Near St. Xavier's College Corner, Off. C. G. Road, Ellisbridge, Ahmedabad-380006. Phone Nos. 079-26465179/86/87 Fax No. 079-26465179 E-mail: [email protected]

(viii)Share Transfer System:

(A) Delegation of Share Transfer Formalities:

Since the Company's shares are compulsorily traded in the demat segment on stock exchanges, bulk of the transfers take place in the electronic form. However, shares in the physical form are processed by the Registrar and Share Transfer Agent. However, to expedite the transfers, the Board has delegated share transfer formalities to certain officers of the Company and Registrar and Share Transfer Agent, who attend to them at least 3 times in a month. Physical transfers are affected within the statutory period of one month. The Board has designated the Company Secretary as the Compliance Officer.

(B) Share Transfer Details for the period from 1st April 2020 to 31st March 2021:

Number of Transfers	20
Average Number of Transfers per month	1.6
Number of Shares Transferred	1506
Average Number of shares Transferred per month	125.05
Number of Pending Share Transfers	NIL

(C) Investors' Grievances:

The Registrar and Transfer Agent under the supervision of the Secretarial Department of the Company look after investors' grievances. Link Intime India Private Limited is responsible for redressal of Investors' Grievances. The Company Secretary of the Company has been appointed as the Compliance Officer for this purpose. At each Meeting of the Stakeholders' Relationship Committee, all matters pertaining to investors including their grievances and redressal are reported.

(ix) Category wise shareholding as on 31st March 2021:

			% of Shareholding
1	Promoters and Promoter Group	116656302	45.05
2	Mutual Funds	12052881	4.65
3	Financial Institutions, Banks, Insurance Companies & Central/State Government	4445536	1.72
4	Foreign Portfolio Investors, Foreign Institutional Investors, NRIs, Foreign Banks, Foreign Nationals	42302813	16.33
5	NBFCs registered with RBI	19520	0.01
6	Bodies Corporate	7767116	3.00
7	Individuals	69871322	26.98
8	IEPF	973725	0.38
9	Trusts	22586	0.01
10	Hindu Undivided Family	3982001	1.54
11	Clearing Members	827367	0.32
12	Overseas Bodies Corporate	2900	0.00
	Total	258924069	100.00

(x) Distribution of shareholding as on 31st March 2021:

Sr. No.		Shares Range		Number of Shareholders	Total Shares for the Range	% of Issued Capital
1	1	to	500	186860	18683990	7.22
2	501	to	1000	9967	8031690	3.10
3	1001	to	2000	4618	7027328	2.71
4	2001	to	3000	1447	3720211	1.44
5	3001	to	4000	661	2383648	0.92
6	4001	to	5000	603	2866847	1.11
7	5001	to	10000	843	6339367	2.45
8	10001	to	****	750	209870988	81.05
		Total		205749	258924069	100.00%

(xi) Dematerialisation of shares and liquidity:

The Company's shares are available for dematerialisation on both the Depositories viz. National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL). Shares of the Company are compulsorily to be delivered in the demat form on Stock Exchanges by all investors. As on 31st March 2021, 25,70,30,111 shares representing 99.27% of the issued capital have been dematerialised by investors and bulk of transfers take place in the demat form.

Demat ISIN:

Equity Shares fully paid: INE034A01011

(xii) Outstanding GDRs / ADRs / Warrants or any convertible instruments and conversion date and likely impact on equity: Not Applicable

(xiii)Commodity price risk or foreign exchange risk and hedging activities:

Commodity - "Raw Cotton Lint"

Risk Management Policy - Risks faced by the Company in Cotton sourcing & supply chain falls under 3 broad categories:

a) Outright Price Risk on Cotton inventory (bought or yet to be bought):

When the Company is long Cotton, it is exposed to outright price risk of a fall in market prices for that part of Cotton inventory that is not squared off by short position on the fabric side. On the other hand, if the Company is short Cotton, it is exposed to outright price risk of a hike in market prices.

To map & mitigate the outright price risk scenario, 'mark to market' valuation of inventory is being done on a weekly basis. At any point in time, we maintain Cotton inventory enough to last - not less than 15 days for all domestically sourced Cotton categories and 60 days of inventory for all import Cotton categories. If we are net long on Cotton and if the mark to market price of a benchmark Cotton category falls more than 5% in valuation, we might hedge our position through futures hedging strategy (either on MCX and/or ICE futures) to mitigate the fall in market.

To aid risk mitigation strategies in the above mentioned circumstances, the Company does a rigorous analysis of data to help us in price view formation:

(i) Fundamental analysis of the market pertaining to Supply & Demand analysis of Cotton in Indian market and relevant overseas origins;
(ii) Structural analysis of market wherein the Company tracks the investment positions of speculators, hedge funds & trade participants in the ICE futures market.

b) Supply Chain and Operational Risks:

Indian Cotton season lasts from 1st October of a given year to 30th September of the following year. In India, Prime quality of Cotton needed for Denim and Shirting business is available in sufficient quantities between December and April months. During these months, the Company builds inventory for those quality sensitive categories - whose availability is less post April. The Company employs similar strategy for sourcing Contamination Free Cotton categories as well. Counterparty credit risk exposure & liabilities are also tracked on a weekly basis through coordination with F&A department.

(c) Forex Risk:

For Cotton imports, the Company has to make payment in USD terms; therefore, the Company is exposed to the risk of depreciation in the local currency. Since the Company is a net exporting company, Forex hedge management is done centrally by the FX Desk based out of Mumbai.

2. Exposure of the Company to Commodity i.e. Raw Cotton Lint is as follows:

Exposure in Quantity - 9382 MT

Exposure in INR - ` 130.74 Crores

(xiv)Plant Locations:

Lifestyle Fabrics Denim, Arvind Limited, Naroda Road, Ahmedabad 380025, Gujarat, India
Lifestyle Fabrics Voiles, Ankur Textiles, Outside Raipur Gate, Ahmedabad 380022, Gujarat, India
Lifestyle Fabrics Shirting, Khakis and Knitwear, Arvind Limited, PO Khatrej, Taluka Kalol, Dist. Gandhinagar 382721, Gujarat, India
Lifestyle Apparel Knits, Arvind Limited, PO Khatrej, Taluka Kalol, Dist. Gandhinagar 382721, Gujarat, India
Lifestyle Apparel Jeans, Arvind Limited, #26/2, 27/2, Kenchenahalli, Mysore Road, Near Bangalore University, Bangalore 560059, Karnataka, India
Lifestyle Apparel Shirts, Arvind Limited, #63/9, Dodda Thogur Village, Electronic City, Hosur Road, Bangalore 560100, Karnataka, India
Arvind Limited (Division Arvind Intex), Rajpur Road, Gomtipur, Ahmedabad 380021, Gujarat, India
Arvind Cotspin, D-64, MIDC, Gokul Shirgaon, Tal. Karveer, Kolhapur 416234, Maharashtra, India

(xv) Unclaimed Dividend:

Unclaimed dividends upto and including the financial years 1993-94 have been transferred to the General Revenue Account of the Central Government. Shareholders who have not encashed their dividend warrants relating to any financial year upto 1993- 94 are requested to claim the amounts from the Registrar of Companies, Gujarat, ROC Bhavan, Near Ankur Bus Stand, Naranpura, Ahmedabad - 380013 in the prescribed form. Investors may write to the Secretarial Department of the Company or the Registrars and Transfer Agent for a copy of the form.
Dividends on equity shares for the financial years 1994-95 to 1997-98, 2004-05, 2005-06, 2011-12 and 2012-13 remaining unclaimed for 7 years from their due dates have been transferred by the Company to the Investor Education and Protection Fund (IEPF) established by the Central Government.
The Company did not declare any dividends on equity shares for the financial years 1998-99 to 2003-04, 2006-07 to 2010-11 and 2019-20.
The dividends on equity shares for the following years remaining unclaimed for 7 years from the dates of declaration are required to be transferred by the Company to IEPF and the various dates for transfer of such amounts are as under:

Financial Year	Date of Declaration	Due for transfer to IEPF*
2013-14	30th July 2014	4th September 2021
2014-15	6th August 2015	11th September 2022
2015-16	4th August 2016	9th September 2023
2016-17	4th August 2017	9th September 2024
2017-18	30th August 2018	5th October 2025
2018-19	6th August 2019	11th September 2026
2019-20	Not Declared	Not Applicable

*Actual dates of transfer to IEPF may vary.

(xvi)Nomination Facility:

Shareholders holding shares in physical form and desirous of making a nomination in respect of their shareholding in the Company, as permitted under Section 72 of the Companies Act, 2013 are requested to submit the prescribed Form SH-13 for this purpose. Shareholders may write to the Secretarial Department of the Company for a copy of the Form.

(xvii) List of all Credit Ratings obtained by the entity:

Credit Ratings obtained by the Company during the year are available on Company's website at www.arvind.com.

(xviii) Address for correspondence:

Shareholders may correspond with the Company at the Registered Office of the Company or at the office of Registrar and Transfer Agent of the Company:

Arvind Limited Secretarial Department	Link Intime India Private Limited 5th Floor, 506 to 508, Amarnath Business Centre-1 (abc-1)
Naroda Road, Ahmedabad - 380 025	Beside Gala Business Centre (GBC) Near St. Xavier's College Corner
Phone Nos.: 079-68268000/8108-09	Off C. G. Road, Ellisbridge, Ahmedabad - 380006
E-mail: [email protected]	Phone Nos.: 079 - 26465179/86/87 • Fax No.: 079 - 26465179
Website: www.arvind.com	E-mail: [email protected] • Website: www.linkintime.co.in

12. OTHER DISCLOSURES

(i) There are no materially significant transactions with the related parties viz. promoters, directors or the management or their relatives or subsidiaries etc. that had potential conflict with the Company's interest. Suitable disclosure as required by the Indian Accounting Standard (Ind AS 24) has been made in the Annual Report. The Related Party Transactions Policy as approved by the Board is uploaded on the Company's Website at

https://www.arvind.com/sites/default/files/field_policy_file/Related%20Party%20Transactions%20Policy%202020.pdf

(ii) Transactions with related parties are disclosed in detail in Note No. 35 in "Notes forming part of the Accounts" annexed to the financial statements for the year. There were no related party transactions having potential conflict with the interest of the Company at large.
(iii) There are no pecuniary relationships or transactions of Non-Executive Directors vis-à-vis the Company which has potential conflict with the interests of the company at large.
(iv) No Strictures or penalties have been imposed on the Company by the Stock Exchanges or by the Securities and Exchange Board of India (SEBI) or by any statutory authority on any matters related to capital markets during the last three years.
(v) The Company has formed the policy for determining material subsidiary as required by Regulation 16 of the SEBI (LODR) Regulations, 2015 and the same is disclosed on the Company's website. The web link is

https://www.arvind.com/sites/default/files/field_policy_file/Policy%20on%20Material%20Subsidiaries.pdf

The Audited Annual Financial Statements of Subsidiary Companies are tabled at the Audit Committee and Board Meetings.

Copies of the Minutes of the Audit Committee / Board Meetings of Subsidiary Companies are given to all the Directors and are tabled at the subsequent Board Meetings.

(vi) Vigil Mechanism:

In staying true to our values of Strength, Performance and Passion and in line with our vision of being one of the most respected companies in India, the Company is committed to the high standards of Corporate Governance and stakeholder responsibility.

The Company has a Whistleblower Policy (WB Policy) that provides a framework and avenue for all directors, employees, business associates and other stakeholders which are a part of the business ecosystem of the Company for reporting, in good faith, instances of unethical/ improper conduct in the Company and commitment in adhering to the standards of ethical, moral and fair business practices, if any. The WB Policy ensures that strict confidentiality is maintained whilst dealing with concerns and also that no discrimination will be meted out to any person for a genuinely raised concern.

Pursuant thereto, a dedicated helpline "Arvind Ethics Helpline" has been set up which is managed by an independent professional organization.

The Ethics Helpline can be contacted to report any suspected or confirmed incident of fraud / misconduct on:

Website for Complaints: www.in.kpmg.com/ethicshelpline/Arvind

Toll Free No.: 1800 200 8301

Dedicated Email ID: [email protected]

Whistle blower Committee has been constituted which looks into the complaints raised. The Committee reports to the Audit Committee and the Board.

No personnel have been denied access to the Chairman of the Audit Committee, for making complaint on any integrity issue.

(vii) The minimum information to be placed before the Board of Directors as specified in Part A of Schedule II of Listing Regulations is complied with to the extent possible.

(viii)Certification from Company Secretary in Practice

Mr. Hitesh Buch, Proprietor of M/s. Hitesh Buch & Associates, Practicing Company Secretaries, has issued a certificate as required under the SEBI (LODR) Regulations, 2015, confirming that none of the directors on the Board of the Company have been debarred or disqualified from being appointed or continuing as director of companies by the SEBI / Ministry of Corporate Affairs or any such statutory authority.

(ix) Complaints pertaining to Sexual Harassment:

During the year, the Company has received 0 (zero) complaint pertaining to sexual harassment.

(x) Details of total fees paid to Statutory Auditors:

Details relating to fees paid to the Statutory Auditors are given in Note 26 to the Standalone Financial Statements and Note 27 to the Consolidated Financial Statements.

(xi) Details of compliance with mandatory requirements and adoption of the non-mandatory requirements:

During the year, the Company has fully complied with the mandatory requirements as stipulated under SEBI (LODR) Regulations, 2015.

The status of compliance with discretionary recommendations and adoption of the non-mandatory requirements as specified in Regulation 27(1) of the SEBI (LODR) Regulations, 2015, is provided below:

The Chairman of the Company is Executive Director. a. The Board:
Half-yearly and other Quarterly financial statements are published in newspapers, uploaded on company's website www.arvind.com and same are not being sent to the shareholders. b. Shareholder Rights:
The Company already has a regime of un-qualified financial statement. Auditors have raised no qualification on the financial statements. c. Modified Opinion(s) in Audit Report:
Mr. Sanjay S. Lalbhai is the Chairman and Managing Director of the Company. d. Separate posts of Chairperson and Chief Executive Officer:
The Internal Auditor reports to the Audit Committee. e. Reporting of Internal Auditor:

The above Report was placed before the Board at its meeting held on 26th May 2021 and the same was approved.

For and on behalf of the Board Date:May 26, 2021 Chairman & Managing Director SANJAY LALBHAI

Place: Ahmedabad

CEO / CFO Certification

To The Board of Directors Arvind Limited Ahmedabad

Re: Financial Statements for the year 2020-21 - Certification by CEO and CFO

We, Sanjay Lalbhai, Chairman & Managing Director and Jayesh Shah, Director & Group Chief Financial Officer of Arvind Limited, certify that:

A. We have reviewed financial statements and the cash flow statement for the financial year ending 31st March 2021 and that to the best of our knowledge and belief:
1. these statements do not contain any materially untrue statement or omit any material fact or contain statements that might be misleading;
1. these statements together present a true and fair view of the Company's affairs and are in compliance with existing accounting standards, applicable laws and regulations.
B. There are, to the best of our knowledge and belief, no transactions entered into by the Company during the year which are fraudulent, illegal or violative of the Company's Code of Conduct.
C. We accept responsibility for establishing and maintaining internal controls for financial reporting and that we have evaluated the effectiveness of internal control systems of the Company pertaining to financial reporting and we have disclosed to the auditors and the Audit Committee, deficiencies in the design or operation of such internal controls, if any, of which we are aware and the steps we have taken or propose to take to rectify these deficiencies.
D. We have indicated to the auditors and the Audit committee:
1. significant changes in internal control over financial reporting during the year;
1. significant changes in accounting policies during the year and that the same have been disclosed in the notes to the financial statements; and
1. instances of significant fraud of which we have become aware and the involvement therein, if any, of the management or an employee having a significant role in the Company's internal control system over financial reporting.

Ahmedabad	Sanjay Lalbhai	Jayesh Shah
May 26, 2021	Chairman & Managing Director	Director & Group CFO

DECLARATION REGARDING COMPLIANCE WITH CODE OF CONDUCT FOR DIRECTORS AND SENIOR MANAGEMENT PERSONNEL

This is to confirm that the Company has adopted a Code of Conduct for Directors and Senior Management Personnel, which is available on the Company's website at www.arvind.com.

I hereby declare that all the Board Members and Senior Management Personnel have affirmed compliance with the Code of Conduct for the year ended 31st March 2021.

Ahmedabad May 26, 2021 Chairman & Managing Director Sanjay Lalbhai

TO THE MEMBERS OF ARVIND LIMITED

Independent Auditor's Certificate on Corporate Governance

1. This certificate is issued in accordance with the terms of our engagement letter reference no.KR/AL/EL/2020-21/01 dated September 28, 2020.
1. We, Deloitte Haskins & Sells LLP, Chartered Accountants, the Statutory Auditors of Arvind Limited ("the Company"), have examined the compliance of conditions of Corporate Governance by the Company, for the year ended on March 31, 2021, as stipulated in regulations 17 to 27 and clauses (b) to (i) of regulation 46(2) and para C and D of Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (the Listing Regulations).

Managements' Responsibility

The compliance of conditions of Corporate Governance is the responsibility of the Management. This responsibility includes the design, implementation and maintenance of internal control and procedures to ensure the compliance with the conditions of the Corporate Governance stipulated in Listing Regulations.

Auditor's Responsibility

1. Our responsibility is limited to examining the procedures and implementation thereof, adopted by the Company for ensuring compliance with the conditions of the Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements of the Company.
1. We have examined the books of account and other relevant records and documents maintained by the Company for the purposes of providing reasonable assurance on the compliance with Corporate Governance requirements by the Company.
1. We have carried out an examination of the relevant records of the Company in accordance with the Guidance Note on Certification of Corporate Governance issued by the Institute of the Chartered Accountants of India (the ICAI), the Standards on Auditing specified under Section 143(10) of the Companies Act 2013, in so far as applicable for the purpose of this certificate and as per the Guidance Note on Reports or Certificates for Special Purposes issued by the ICAI which requires that we comply with the ethical requirements of the Code of Ethics issued by the ICAI.
1. We have complied with the relevant applicable requirements of the Standard on Quality Control (SQC) 1, Quality Control for Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related Services Engagements.

Opinion

1. Based on our examination of the relevant records and according to the information and explanations provided to us and the representations provided by the Management, we certify that the Company has complied with the conditions of Corporate Governance as stipulated in regulations 17 to 27 and clauses (b) to (i) of regulation 46(2) and para C and D of Schedule V of the Listing Regulations during the year ended March 31, 2021.
1. We state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness with which the Management has conducted the affairs of the Company.

Deloitte Haskins & Sells LLP For

Chartered Accountants (Firm's Registration No. 117366W/W-100018)

Kartikeya Raval

Partner (Membership No. 106189)

Place: Ahmedabad Date: May 26, 2021

Economic context and Textile and Apparel market situation

Global economy contracted by 3.3% in 2020 as estimated by the IMF. The widespread, synchronous and deep impact on economic activity was unprecedented, and nothing close to seen by a generation. Governments around the world rushed in with extra-ordinary policy support which limited the economic impact that could have otherwise ensued.

As the world tries to vaccinate itself out of this pandemic, the mutations and pathways of the disease evolution are very much unknown, and will continue to cast shadow of uncertainty on the outlook. 2021 is expected to see a global GDP growth of 6% on the previous year's reduced base, and 2022 will likely grow by another 4.4%. The outlook forward is likely to be defined by the ability of countries and regions to respond to the pandemic challenge. The wide variation in success of this response, and incidence of multiple waves is likely to be reflected in the variations in the economic activity as well.

US, which was battered by the pandemic in most part of 2020, got off to a blistering start in terms of economic growth in first quarter of 2021. The real GDP grew by 6.4% on an annualized basis, driven by consumer spending on goods, business investment in equipment, and Federal government purchases of non-defence items. In the Eurozone and the United Kingdom, activity is recovering but expected to remain below end-of-2019 levels into 2022. China has been the most successful among major economies to contain the pandemic, and is likely to continue seeing robust growth. In general, tourism-based economies, and relatively poor countries will continue to be severely challenged in their recovery resulting in increasing gap between the economies.

Consumer spend in recovering economies is expected to be strong as pent-up demand and inability to spend on services creates high discretionary spend on goods. A large portion of this is expected to be absorbed by durables, especially the automobiles sector. Global textiles and apparel manufacturing continued to trail at 10% below 2019 levels, and by some estimates lost 92% of economic profits in 2020.

The Indian economy contracted by 7% during the financial year ending March 2021. The economy which had fell off the cliff in Q1, started to show V-shaped recovery primarily powered by government expenditure and exports. 15+% contraction in the first half was offset by 3% growth in the second half. Consumer demand also showed spikes in limited pockets in specific time windows. Overall, the Indian apparel market is estimated to have declined by 27% during 2020.

Aided by an accommodative monetary policy, and a stable fiscal policy and outlook laid out in the budget, asset markets continued to be strong as the fiscal 2021 drew to a close. Before the plunge of 2nd wave, it was widely estimated that the Indian economy will clock a strong 12%+ growth in FY22. The developments in April 2021 have created a huge uncertainty around this outlook, and most agencies have been revising down the growth expectations.

Arvind's business performance summary

				` in Crores
	For the year ended
Particulars	March 31, 2021			March 31, 2020

Revenue from Operations	5,073		7,369
Other Income	52		55
Total Revenue	5,125		7,424
Cost of Material Consumed	2,089	41%	3,300	46%
Purchase of Stock in Trade	272	5%	366	5%
Change in Inventory	161	3%	69	1%
Project Expenses	40	1%	74	1%
Employee Cost	696	14%	942	13%
Power & Fuel	328	6%	456	6%
Stores Consumption	345	7%	520	7%
Other Expenses	679	13%	949	13%
EBIDTA	515	10%	748	10%
EBIDTA w/o Other Income	463	9%	692	10%
Depreciation	285	6%	290	4%
Finance Cost	225	4%	237	3%
Share of Profit/(loss) of Joint venture	0		-2
Profit Before Exceptional Items and	5	0%	218	3%
Tax
Exceptional Item	-36		-50
Profit before Tax	-31	0%	168	2%

While the full FY2021 performance, especially the H1, was impacted given the onset of first wave of Covid, both demand and supply improved subsequently. Each month showed a sequential improvement in capacity utilization and Arvind delivered a strong performance in Q4 of FY2021.

Arvind leadership made swift and difficult decisions in regards to closure of facilities and reduction of headcounts early in the year. This resulted in substantial fixed cost savings and margin improvement as the business volumes returned towards the later half of the financial year. Working Capital discipline also remained strong. Many changes are likely to yield sustainable cost advantage in the quarters to come. Combined with tight control on capital expenditures, Arvind successfully met its objective of reducing the debt by a significant quantum.

In the Textiles business, the Fabric volumes steadily recovered each month, and for Q4 surpassed the numbers for Q4 of FY20. While the domestic markets largely remained challenging, except some recovery post Diwali, export volumes continued to be strong and showed sharp recovery each month as markets opened up post Covid. Price realization also improved especially in Denims, offsetting the sharp increases in input RM costs. Garment volumes reached 90+% of previous year volumes in Q3 and Q4, as factories opened up and workers returned post Wave-1.

Unlike the Textiles businesses, all three Advanced Materials businesses –

Human Protection, Industrials and Advanced Composites – did not see any adverse impact on demand side. However, the capacity loss in Q1 capped the overall full year performance for AMD. Despite manpower challenges resulting from Covid, AMD businesses continued to improve their mix towards differentiated products, and also consolidated their positions in key accounts.

Among other smaller businesses, Arvind-Envisol – our effluent treatment business – had a challenging year as existing project sites and new project starts continued to be hampered given various lock-downs and restrictions. Arvind Internet also got impacted given the disruption in retail segment during the year, despite the strong gains it clocked in consolidating its customer accounts and making significant enhancements/improvements in its product offerings.

Overall, revival of most businesses towards the end of the financial year enabled Arvind to clock a strong fourth quarter, and wrap-up a difficult year on a strong note in terms of financial performance.

Results review

Overall revenues of the company reduced by 31% in FY21, compared to FY20. Textiles revenues reduced by 35% and Advanced Materials by 5%. Overall revenue de-growth stood at 68% in Q1, 33% and 19% in second and third quarters; Q4 showed a small growth of 1% over the previous year Q4 revenues. Operating Earnings (excluding other income) Before Interest Depreciation and Taxes (EBITDA) margins improved to 12.6% for Q4, and this helped close the full year EBITDA at 9.1% which was marginally lower than 9.4% for full year FY20. Consolidated Profit Before Tax and exceptional items which stood at INR 220 crores in FY20, was down to near break-even levels at INR 5 crores in FY21. Profit After Tax was reported at INR (27) crores for the year.

Revenue

FY21 started on a catastrophic note as April revenues were lower by 91% compared to previous year. Gradually the run-rate started to improve and Q1 ended up at level of 32% of Q1FY20 revenues. Fabric volumes gradually improved as the export demand recovered by Q2, and subsequently domestic demand by Q3. Garment revenues were driven more by supply side constraints as volumes recovered to 90% by Q3. Advanced Materials as well was constrained more by supply side limitations as demand for its largely industrial products stayed firm. Overall, by Q4 FY2021, Textile revenues had almost reached previous year levels and AMD saw a growth of 11%.

Cost of Goods Sold:

On one hand, the Textiles business grappled with lower demand, on other hand it also faced steep challenges on the input cost side. Cotton prices increased by about 40% over the 12-month period, and for Q4 stood at an average of INR 114/kg. Costs of other direct materials which includes Dyes & Chemicals also remained at 7% of total revenue. Power & Fuel cost for the year remained at 6% of the total revenue. Similarly, input costs for Advanced Materials businesses also saw a sharp increase especially in second half of FY2021.

During the year, the company implemented a focused fixed cost reduction program that saw manpower, G&A and other fixed costs declining sharply compared to FY20. Our employee cost reduced to 697 crores in the year under review, primarily due to cost reduction measures undertaken during the year. As a proportion to revenue, employee costs continued to remain at 14% of operating revenues.

Operating Margin:

As the year progressed and capacity utilization improved, EBITDA (excluding other income) margins increased as well and for Q4 stood at 12.6%. On a full year basis, the EBITDA (excluding other income) margins were lower by 30 bps to 9.1% as compared to 9.4% for FY20. In absolute terms, EBITDA fell 33% to INR 463 crores for FY2021.

Finance Cost:

Finance cost for the year stood at INR 225 crores as compared to INR 237 crores. This includes write-off of TUF interest benefit of INR 10 crores.

Depreciation:

Depreciation for the year stood at INR 285 crores, which was similar to INR 290 crores in the previous year. Given the lower revenue figure, it stood at a higher 6% compared to 4% in the previous year

Profit before Taxes:

PBT for the full year stood at a near break-even level, at INR 5 crores, down from INR 218 crores in FY2020.

Net Profit:

Profit after taxes and after providing for INR 36 crores worth of exceptional items, stood at negative INR 16.5 crores (excluding minority interest) for the year. In comparison, FY20 PAT was INR 96 crores (after providing for INR 50 crores of exceptional items and including minority interest).

Working Capital:

Net Working Capital saw a second continuing year of reduction – both in terms of absolute amount as well as turns. NWC as of 31st March 2021 stood at INR 1194 crores which was 17% lesser than the corresponding number for one year ago. In terms of turn it has improved from 3.9 for FY19, to 5.1 for FY20 and 5.6 turns basis annualized Q4 FY21 revenues.

Debt:

Our Net Debt at the end of FY21 stood at INR 1,951 crores which was around 18% lower than corresponding figure last year. This sharp reduction in our overall borrowing by INR 421 crores was a result of tighter operating and financial discipline, fixed cost reduction and limiting the capital expenditure to necessary minimum.

Denim

For Q4, Denim volumes stood at 20M meters, which was about 13% higher than previous year. However, on a full year basis, Denim fabric business saw a decrease in volume from 80 M meters to 62 M meters. The export segments recovered much faster and stayed strong. Among the domestic markets, tier-2/3 brands were relatively less impacted. The

company continued to strengthen its sustainability credentials among key customers. Also, Indigo knits range of products were launched during the year which were received well by our brand customers. During the fourth quarter, the Denim business also saw recovery in price realization and helped close the overall year at INR 191 per meter, which just surpassed last year's realization. For the full year though, Denim revenues stood at INR 1225 crores (about 20% lower than last year).

Woven

Similar to Denim, Woven volumes also recovered well towards the end of FY21, and for Q4 stood at 28 M meters which were higher by 3 M meters compared to Q4 FY20. For the full year, Woven volumes stood at 81 M meters compared to 125 M meters in FY20. Woven business saw significantly reduced volumes in the domestic business as key brands and retailers continued to remain impacted by Covid related shutdowns and shopping restrictions. Also, reduced work-place visits, occasions and social get-togethers kept shoppers away from refreshing/augmenting their wardrobes. In comparison, the exports business to key brands recovered nicely in tandem with reopening of global retailers and brands, especially during the second half of the year. The domestic B2C business including The Arvind Stores saw severe headwinds during the year. Voiles business which predominantly thrives on women's dress materials in smaller towns was relatively less impacted as those markets remained less hampered by the first wave of Covid. Woven revenues declined to INR 1259 crores from INR 2164 crores last year.

Garment

During the year, we brought all the garment manufacturing capacities under a unified organization structure to leverage senior expertise across all units. The new facilities implemented in the previous year were stabilized, and some of the lesser utilized assets were shut-down/ consolidated. All these initiatives led to a portfolio of robust supply base with a competitive and sustainable cost structure. This helped weather the disruptions caused by Covid, and associated shut-downs which impacted our facilities in Karnataka quite severely. Although the volumes recovered to 90%+ in the second half of the year, for the full year, the total garment shipments, excluding essentials stood at 32 million pieces (down 10 million pcs from 42 million in FY20).

The financial performance of this business also suffered from reduction in government incentives, and lack of clarity around RoDTEP.

Advanced Materials

Advanced Materials Division (AMD) saw continuing demand for its products through the pandemic during all times in FY2021. However, the AMD businesses did face supply side challenges as facilities worked at less than full capacity owing to worker shortage. Also, supply of input raw materials remained patchy and by H2, their prices start to soar high. Yes, the business delivered a healthy topline of INR 679 crores, which was slightly lower than 713 crores in FY20. Also, the EBITDA margins for this business improved from 12.9% in FY20 to 14.4% in FY21. AMD is comprised of three main businesses – Human Protection, Advanced Composites and Industrials. Human Protection segment, that makes and sells specialty functional apparel such as Fire Retardant, Work Wear, Abrasion Resistant suits, Low temperature clothing etc., consolidated its position in large global accounts as a preferred supplier. Composites business continued to diversify its product portfolio towards higher value products including carbon-fibre-reinforced sports goods which have got strong market reception. The Industrial products businesses – which include various kinds of liquid and gas filtration, belting, coated fabrics and yarn – also saw nice pick-up on the revenue side, and delivered healthy contributions.

Introduction

Arvind Limited, established in the year 1931, is the flagship company of the Lalbhai Group is one of the largest textiles manufacturer and exporter in India. The Company's principal businesses are manufacturing and marketing of denim fabric, shirting fabric, woven and knitted fabric, voiles and garments. The production units are located in Gujarat, Maharashtra, Jharkhand and Karnataka.

This report conforms to the Business Responsibility Reporting (BRR) requirement of the Securities & Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ('SEBI LODR') and the National Voluntary Guidelines on the Social, Environmental and Economic Responsibilities of Business (NVGs) released in 2011. Furthermore, Arvind publishes its sustainability performance in a Sustainability Report in accordance with Global Reporting Initiative (GRI) standards. The Sustainability Report can be accessed at http://arvind.com/sustainability.

Section A: General Information about the company

Corporate Identity Number (CIN) of the Company: L17119GJ1931PLC000093

Name of the Company: Arvind Limited

Registered address: Naroda Road, Ahmedabad-380025, Gujarat, INDIA

Website: http://www.arvind.com/

E-mail id: [email protected]

Financial Year reported: FY 2020-2021

Sector(s) that the Company is engaged in (industrial activity code-wise): Textile Manufacturing

Code : 131

List three key products/services that the Company manufactures/provides (as in balance sheet):

Fabrics and Apparel manufacturing and Retail activities

Total number of locations where business activity is undertaken by the Company:

Business activity is undertaken by the Company out of two locations; India & Ethiopia. For details regarding other locations, refer Page No. 247

Markets served by the Company – Local/State/National/International: National & International

Section B: Financial details of the company

Paid up Capital (INR): ` 258.92 Crores

Total Turnover (INR): 4528.54 Crores `

Total profit after taxes (INR) : 92.67 Crores `

Total Spending on Corporate Social Responsibility (CSR) as percentage of profit after tax (%) : 2% of the average net profit of the company made during the three immediately preceding Financial Years.

The Company's total spending on CSR for the year ended March 31, 2021 was 8.81 Crores* which is 2% of the PAT. `

*Unspent amount of 3,75,00,000/- for FY 2019-20 spent in FY 2020-21. `

List of activities in which expenditure in 4 above has been incurred: Refer Annexure B to the Directors' Report on Page No. 42

Section C: Other Details

Any Subsidiary Company/ Companies:

Yes. Refer to the Annual Return provided on Company's Website at:

https://www.arvind.com/sites/default/files/field_investor_updates_file/AnnualReturn2021.pdf

Do the Subsidiary Company participate in the BR Initiatives of the parent company? If yes, then indicate the number of such subsidiary company(s): No, subsidiary companies do not participate in BR initiatives as of now.

Do any other entity (e.g. suppliers, distributors etc.) that the Company does business with, participate in the BR initiatives of the Company? If yes, then indicate the percentage of such entity/entities? [Less than 30%, 30-60%, More than 60%]:

None of the entities that we work with have taken up BR initiative during previous financial year.

Section D: BR Information

1. (a) Details of Director/Directors responsible for BR

Name: Mr. Jayesh Shah DIN: 00008349 Designation: CFO & Whole time Director Telephone Number: 079-68268000 Email id: [email protected]

(b) Details of the BR head

Name: Mr. Abhishek Bansal Designation: Head of Sustainability Telephone Number: 9712909648 Email id: [email protected]

	National Voluntary Guidelines	Arvind's Policies
P1	Business should conduct and govern themselves with Ethics, Transparency and Accountability	Code of Conduct for Directors and SMP, Related Party Transactions Policy, Whistleblower Policy
P2	Businesses should provide goods and services that are safe and contribute to sustainability throughout their life cycle	Environment Policy, Quality Policy, Chemicals Procurement Policy
P3	Businesses should promote the well-being of all employees	Safety Policy, Prevention of Sexual Harassment Agreement, Freedom of Association (Code of Conduct), Maternity Policy
P4	Businesses should respect the interests of and be responsive towards all stakeholders, especially those who are disadvantaged, vulnerable and marginalized	Whistleblower Policy and Code of Conduct.
P5	Businesses should respect and promote human rights	Code of Conduct, Whistleblower Policy
P6	Business should respect, protect and make efforts to restore the environment	Environment Policy, Chemical Management Policy and Spill Management Policy
P7	Businesses, when engaged in influencing public and regulatory policy, should do so in a responsible manner	Code of Conduct
P8	Businesses should support inclusive growth and equitable development	CSR Policy, Maternity Policy
P9	Businesses should engage with and provide value to their customers and consumers in a responsible manner	Code of Conduct, Quality Policy

2. Principle-wise (as per NVGs) BR Policy/policies (Reply in Y/N)
Principle-wise Policies	P1	P2	P3	P4	P5	P6	P7	P8	P9
Do you have a policy/policies for:	Y	Y	Y	Y	Y	Y	Y	Y	Y
Has the policy being formulated in consultation with the relevant stakeholders?	Y	Y	Y	Y	Y	Y	Y	Y	Y
D o e s t h e p o l i c y c o n f o r m t o a n y national/international standards? If yes, specify? (50 words)	Various national and international laws as well as international conventions are captured in the policies articulated by Arvind Limited such as GRI Guidelines and International Standards such as ISO 14001, ISO 50001, OHSAS 18001 and SA 8000.
Has the policy being approved by the Board? If yes, has it been signed by MD/owner/ CEO/ appropriate Board Director?	Y	Y	Y	Y	Y	Y	Y	Y	Y
Does the Company have a specified committee of the Board/Director/Official to oversee the implementation of the policy?	N	N	N	N	N	N	N	N	N
Indicate the link for the policy to be viewed online?	Y	Y	Y	Y	Y	Y	Y	Y	Y
Has the policy been formally communicated to all relevant internal and external stakeholders?	Y	Y	Y	Y	Y	Y	Y	Y	Y
Does the Company have in-house structure to implement the policy/policies?	Y	Y	Y	Y	Y	Y	Y	Y	Y

Does the Company have a grievance redressal mechanism related to the policy/policies to address stakeholders' grievances related to the policy/policies?	Y	Y	Y	Y	Y	Y	Y	Y	Y
Has the Company carried out independent audit/ evaluation of the working of this policy by an internal or external agency?			We have not carried out independent audit of the working of this policy.

3. Governance related to BR

i. Indicate the frequency with which the Board of Directors, Committee of the Board or CEO to assess the BR performance of the Company. Within three months, 3-6 months, annually, more than 1 year:

The Board of Directors meet every quarter to discuss applicable BR issues and assess the BR performance of the Company.

ii. Does the Company publish a BR or a Sustainability Report? What is the hyperlink for viewing this report? How frequently it is published?

The third Corporate Sustainability Report of Arvind Limited had been published in the year 2020 and uploaded on the website. This report is available at: https://www.arvind.com/sustainability

The fourth Sustainability report is in progress.

Section E: Principle-wise Performance

Principle 1 - Business should conduct and govern themselves with Ethics, Transparency and Accountability

1. Does the policy relating to ethics, bribery and corruption cover only the Company? (Yes/No). Does it extend to the Group/ Joint Ventures/Suppliers/Contractors/NGOs/Others?

Our Corporate Governance practices apply across Arvind Ltd. Group and extend to our value-chain partners like suppliers and service providers, distributors, sales representatives, contractors, channel partners, consultants, intermediaries and agents; joint-venture partners or other business associates; financial stakeholders; governments of the countries in which we operate.

2. How many stakeholder complaints have been received in the past financial year and what percentage was satisfactorily resolved? If so, provide details thereof, in about 50 words or so.

Arvind Ltd.'s stakeholder includes Investors, clients, employees, vendors/ partners, government and local communities. For details on Investor complaints and resolutions, refer to the 'Investor Grievance' in General Shareholder Information Section of Annual Report.

For details on employee grievances and resolutions, the Company has a robust system of Complaints Handling. The complaints are received through a third-party service agency. Such complaints are routed to the Whistle Blower Committee appointed by the Audit Committee. Its members include the Executive Director and Head of Internal Audit. The complaints are investigated and the investigation results are reported to the Audit Committee, along with action taken. The Company has received 12 complaints from employees and business partners during the year, out of which 12 have been addressed.

Principle 2 - Businesses should provide goods and services that are safe and contribute to sustainability throughout their life cycle

1. List up to 3 of your products or services whose design has incorporated social or environmental concerns, risks and/or opportunities.

Environment and social concern holds a center stage in the innovation and development of our products, few products are:

Quantum Denim
Recycled Denim
Recycled Polyester
Khadi Denim
Linen Denim
Rota spray products
Advanced Denim
Waterless Wash in Denim Laundry process

Products made with BCI and Organic cotton
Dynamic Rinsing
Water recycling and Zero Liquid discharge
2. For each such product, provide the following details in respect of resource use (energy, water, raw material etc.) per unit of product (optional):

(i) Reduction during sourcing/production/distribution achieved since the previous year throughout the value chain

and fertilizers which has a huge positive impact on the environment. Organic cotton primarily reduces the impacts during the farming stage of cotton. Organic cotton is farmed using zero chemical pesticides
Waterless wash reduces the water consumption in denim manufacturing process to almost half over the baseline.

(ii) Reduction during usage by consumers (energy, water) has been achieved since the previous year?

BCI:

The Better Cotton Initiatives (BCI) seeks to grow responsible cotton through carefully controlled application of water and use of approved fertilisers and pesticides; thereby, dramatically reducing the environment footprint of cotton farming.

BCI usage in our products has played significant role in social and environmental front. BCI has helped less usage of pesticides, less of water, usages of Natural Manure. This has helped less of input cost and more or similar output as end crop product. Less cost and more output helped upgrade social life and less usage of pesticides & saving of water lead to environmental savings.

To reduce impact of water and pesticide use on human and environmental health •
To Improve soil health and biodiversity •
To Promote decent work for farming communities and cotton farm workers •
To demonstrate the inherent benefits of BCI, particularly the financial profitability for farmers •

Total 39% BCI has been used in the production in the financial year.

Neo Dyeing:

Also, NEO Dyeing has played a major role across savings of Dyes/ Chemicals and water yet stay fit to fashion and trends of Denim. Reduction of water (big way) is a key to NEO Success.

Waterless Wash:

While water cannot be substituted completely in the manufacturing processes, we take water saving initiatives to manage it responsibly. We have adopted some of Levi's waterless washing rules to conserve water during the washing process. Among these, Arvind practices Remove Desize step, Low liquor ratio for stone wash, combine fixing and Softener prominently to conserve water.

Water less washing can be attained by following anyone of the following step (Levis Waterless Washing Rules):

Remove Desize step •
Using Ozone instead of powerful bleach
Low liquor ratio for stonewash •
Using Foam dye •
Water free stone wash •
Foam bleach •
Using Spray softener •
Low liquor ratio for stonewash •
Sky Bleach / Rags Bleach •
Using Soft rigid technique •
Combine fixing and softener •
Ozone Mist •
Combine enzyme and softener •
Low liquor ratio bleach •
Low liquor ratio reactive garment dye •
Water free stonewashes •

3. Does the Company have procedures in place for sustainable sourcing (including transportation)? If yes, what percentage of your inputs was sourced sustainably? Also, provide details thereof.

We have a Responsible Supply Chain Mechanism. We are sourcing sustainable cotton from the farms to produce fabric. Around 45 % of our cotton is sustainable and we are scaling this up now.

4. Has the Company taken any steps to procure goods and services from local & small producers, including communities surrounding their place of work? If yes, what steps have been taken to improve their capacity and capability of local and small vendors?

Being one of the largest producers of textiles and garments in India, cotton continues to remain a key input material for us. Arvind therefore has been working with farmers to promote Sustainable Cotton for over a decade.

Arvind was also the first textile major to partner with Better Cotton Initiatives (BCI). We engage with farmers to produce BCI cotton through contract farming at Maharashtra and Gujarat to procure raw material from them. We ensure an uninterrupted supply chain, while remaining watchful that the cotton farmers, the community and the mother Earth reap the benefits as well. To make cotton farming sustainable and responsible, we need to understand and address the challenges across all three bottom lines:

Economic

In India, most farms are rainfed and monsoons are unpredictable. Crop failures and under-realisation of investment lead to financial impoverishment, and sometimes, farmer suicides. Farmer's interests, therefore, must be safeguarded.

Social

Automation is limited to only a few big farmers. Hence, the high unskilled labour quotient opens the possibilities for social evils like forced labour, inhumane work conditions, gender and caste-based discrimination and child labour.

Environmental

The task on hand is to find environmental friendly processes, to meet the continuously increasing demand.

The Better Cotton Initiatives seeks to grow responsible cotton through carefully controlled application of water and use and reduction of approved fertilizers and pesticides; thereby, dramatically reducing the environment footprint of cotton farming. Arvind is one of the largest implementation partners of BCI in India. We see great merit in BCI as an intermediate step towards responsible farming because of advantages like:

Reduced cost of production
More profit per acre
Better nutrient, pest & disease management
Enhanced water efficiency
Enhancing Bio diversity
Improved soil health
Healthier and more inclusive community
Better work ethics for farm workers

To improve their capacity and capability further we have following plans at place:

Build a reliable supply of clean cotton from India
Enhance yield and fiber quality, ensure safe handling of pesticides
Improve water linkages and sustainable irrigation practices
Train, build farmers capacity and implement BCI principles more robustly
Work on child education, child labour and forced labour
Add new dimensions and work stream to existing work in order to ensure availability and traceability of clean and contamination-free cotton in India
Partner with external agencies for reinforcement with
o Lindsay Corporation for irrigation
o Bayer for high yield seeds variety, and appropriate insecticides and pesticides
o John Deere for mechanised sowing and harvesting of the cotton crop

5. Does the Company have a mechanism to recycle products and waste? If yes, what is the percentage of recycling of products and waste (separately as <5%, 5-10%, >10%). Also, provide details thereof.

Yes, all the textile non-hazardous waste is sent to the recyclers and used by someone else.

	UOM	FY20-21
Total Soft waste	ton	9647.447
Total hard waste	ton	4325.654
Chindi	ton	2073.100

Principle 3 - Businesses should promote the well-being of all employees

1. Total number of employees

Staff: 2940

Workers: (Excluding contractual workers) 21834

2. Total number of employees hired on temporary/contractual/casual basis

Contractual workers: 4377

Total contractual workers here include Lump sum, Man days based and Production based worker

3. Number of permanent women employees:

Staff: 259

Worker: 7594

4. Number of permanent employees with disabilities:

Total physically challenged employees (including permanent workers): 84

Male: 69

Female: 15

5. Do you have an employee association that is recognized by management?

We have worker unions at our textile mills which are duly recognized by the management.

6. What percentage of your permanent employees is members of this recognized employee association?

100% of our workers at the mills are members of the union.

7. Please indicate the number of complaints relating to: (i) Child labour, forced labour, involuntary labour, sexual harassment in the last financial year and pending, as on the end of the financial year; (ii) Sexual harassment; (iii) Discriminatory employment.

There were no complaints against child, forced labour, sexual harassment as well as for discriminatory employment during the last financial year.

Arvind Internal Complaints Committee (AICC) conducts the proceeding regarding sexual harassment as defined in the Policy. The case is dealt as per the policy guidelines and ICC recommendations in a fair and just manner.

8. What percentage of your under mentioned employees were given safety and skill up-gradation training in the last year?

We have done around 64 sessions of safety skill upgradation training covering almost 2834 employees.

Principle 4 - Businesses should respect the interests of and be responsive towards all stakeholders, especially those who are disadvantaged, vulnerable and marginalized

1. Has the Company mapped its internal and external stakeholders?

We recognize the fact that as a large business we have several stakeholder groups each with distinct priorities and diverse interests. We therefore developed a method for structured identification of stakeholder groups, understanding their concerns and incorporating their views in our sustainability strategy. This method was developed as part of a Sustainability Roadmap study by Ernst & Young LLP. Based on various parameters which impact the sustainability of business such as dependency, responsibility, tension and influence, we have distilled down to the following key stakeholders:

Customers
Investors
Employees & Workers
Local Community
Media
Government Agencies
Suppliers
Distributors

The stakeholder identification process was followed by reconstitution of our engagement mechanism. Diverse communication platforms were institutionalised for each stakeholder group, with the objective of communicating our company policies and expectations, and collecting timely feedback from stakeholders. In the reporting year too, we continued to engage with all our stakeholder in a two-way dialogue, around the year and through a host of channels:

Customers	Develop a sustained relationship -Anticipate short and long-term expectations -Fulfill their requirements of Sustainable products -Understand their Sustainability Goals	• Periodic one-to-one interactions with key customers • Personal meetings by our design and technology teams with customer groups at regular intervals throughout the year • B2B customer portal has been launched during reporting period to facilitate a continuous dialogue • Feedback gathered during customer visits and audits to the manufacturing locations
Investors	Understand concerns and expectations, create higher shared value Understand the Sustainability risk perception of investors	• Regular dissemination of financial performance through website, newspapers and published accounts • In-depth interactions in analyst meets and investor presentations • Redressal of Specific queries on sustainability from investors
Employees & Workers	Understand their career ambitions, job satisfaction parameters, support career growth, training and development Share organisation's vision, short-term and long-term goals, workplace needs and expectations	• Structured interactive appraisals, career path guidance, training programmes, employee rewards and recognitions (Arvind Stores), development programmes • Feedback mechanism for FLM using various channels
Local Community	Maintain enduring relations with local communities	• Interactions by IR department • SHARDA Trust's activities
Media	Communicate key developments, milestone events, growth plans etc. Build larger outreach on Sustainability issues as well as create need for Sustainable outcomes	• Media interaction events, press conferences etc. • Media announcements of quarterly reports, annual report and major tie-ups • Media visits to facilities to demonstrate progress on Sustainability
Government Agencies	Understand compliance and applicable regulations. Brief them on steps taken and discuss opportunities to collaborate on pressing issues	• Personal meetings • Submission of relevant compliance documents • Presence in industry forums
Suppliers	Sharing of mutual expectations and needs, especially with regard to quality, cost and timely delivery, growth plans and sharing of best practices	• Periodic interactions between Arvind's buying and sourcing teams • Training programmes, quality workshops

2. Out of the above, has the Company identified the disadvantages, vulnerable and marginalized stakeholders?

No.

stakeholders? If so, provide details thereof, in about 50 words or so. 3. Are there any special initiatives taken by the Company to engage with the disadvantaged, vulnerable and marginalized

No.

Principle 5 - Businesses should respect and promote human rights

1. Does the policy of the Company on human rights cover only the Company or extend to the Group/Joint Ventures/Suppliers/Contractors/NGOs/Others?

Yes, all companies in the Arvind Ltd. Group including employees and contractors are covered by CoC standards. Not only our intentions, but also our actions are compliant with all statutory laws and regulations.

2. How many stakeholder complaints have been received in the past financial year and what percent was satisfactorily resolved?

Our stakeholder engagement processes are robust and have strong listening mechanisms. In the financial year, there were no human rights violation complaints relating either to child, forced and involuntary labor, discriminatory employment against the Company.

Additionally, all our stakeholders have access to the Whistleblower Policy of Arvind Ltd. at http://arvind.com/sites/default/files/field_policy_file/Whistle%20Blower%20Policy_n.pdf

Principle 6 - Business should respect, protect and make efforts to restore the environment

1. Does the policy related to Principle 6 cover only the Company or extends to the Group/Joint Ventures/ Suppliers/Contractors/NGOs/others.

Yes, the company's Environment and Chemical policy is made available to all our employees. Also, posters and instructions are physically displayed across our premises. We are certified to ISO 14001:2015 at all major manufacturing locations.

Additionally, we encourage our suppliers and contractors to adopt similar policies and practices.

2. Does the Company have strategies/initiatives to address global environmental issues such as climate change, global warming, etc.? Y/N. If yes, please give hyperlink for webpage etc.

Yes, we have worked extensively towards the environmental issues such as Climate Change, Global Warming etc., through various water, energy and chemical initiatives which are mentioned in detail in the Sustainability Report of Arvind.

Also, we have worked out the key material issues of the company which are contributing to the environmental challenge. Refer the Sustainability Report: http://www.arvind.com/sustainability

3. Does the Company identify and assess potential environmental risks?

Yes, we have a proper mechanism to identify and assess the potential environmental risks on a regular basis and also do the after follow-ups for the same to ensure the proper actions to cater to those identified risks.

4. Does the Company have any project related to Clean Development Mechanism? If so, provide details thereof, in about 50 words or so. Also, if yes, is any environmental compliance report filed? (Please confirm)

Currently we do not have any project related to Clean Development Mechanism.

5. Has the Company undertaken any other initiatives on – clean technology, energy efficiency, renewable energy, etc.? Y/N. If yes, please give hyperlink for webpage etc.

The initiatives on clean technology, energy efficiency and renewable energy can be found in our Sustainability report available at www.arvind.com

We have implemented about 22 MW rooftop solar in last few years.

6. Are the emissions/waste generated by the Company within the permissible limits given by CPCB/SPCB for the financial year being reported?

Yes, we comply with all applicable environmental legislations in the locations we operate from. We monitor and track all parameters as defined by CPCB or SPCBs and ensure that they are maintained within norms.

7. Number of show cause/legal notices received from CPCB/SPCB which are pending (i.e. not resolved to satisfaction) as on end of financial year.

We did not have any monetary or non-monetary sanctions imposed on us for non-compliance with environmental laws and regulations during FY 2020-21.

Principle 7 - Businesses, when engaged in influencing public and regulatory policy, should do so in a responsible manner

1. Is your Company a member of any trade and chamber or association? If yes, name only those major ones that your business deals with.

Our long-standing commitment is to be a responsible organization. Towards the purpose, we have embraced globally best sustainability

practices, and have signed several international charters, principles and coalitions.

Sustainable Apparel Coalition

We are a founding member of The Sustainable Apparel Coalition (SAC). Higg Index, one of the key focus areas of SAC, helps gauge environment and social impact of the apparel industry. We have reported on the Higg Index 3.0 Assessments at all our manufacturing facilities.

Better Cotton Initiative

We have collaborated extensively with BCI in our quest to bring environmental and social sustainability, in the production and sourcing of our most valued raw material - Cotton. Details of our collaboration with BCI are presented in the Cotton section of this Report.

Social Accountability International – SA8000 Standard

We have adopted Social Accountability Management System as per the SA8000: 2008 Standard, and have been externally audited by Bureau Veritas. The scope of our operations for this certification includes manufacture and dispatch of woven fabrics, knit fabrics and industrial fabrics.

International Organization for Standardization – ISO 9001, ISO 14001

Our operations are ISO 9001: 2008 (Quality Management Systems) and ISO 14001: 2004 (Environmental Management Systems) certified.

Global Organic Textile Standard

We have received the GOTS Standard 5.0 certification for our fabrics, fibers and yarns products. Our manufacturing activities covered within the scope of this certification includes dyeing, exporting, finishing, knitting, printing, sizing, spinning, storing, trading, weaving, wet processing and yarn dyeing.

Global Reporting Initiative

This Report represents our first attempt at presenting sustainability disclosures, using the GRI G4 Sustainability Reporting Guidelines. As we continue to integrate sustainability within our business in the future, we remain committed to publicly disclosing our sustainability performance through publishing such reports on a periodic basis.

Occupational Health and Safety Assessment Series (OHSAS 18001:2007 Certifications)

Our emphasis on continual improvement in health and safety of our workers continues to remain strong as ever. All hazards and its associated risk identified across the Santej Facility. Any risk that deems to be high in the Hazard Identification and Risk Analysis (HIRA) are prioritized and taken in to management plan. Various control measures adopted to oversee safe functioning of scores of activities. This is a recognition of our adherence to health and safety by an independent agency.

CDP

Arvind Ltd. has reported at CDP (Carbon Disclosure Project) for last four years in row now.

2. Have you advocated/lobbied through above associations for the advancement or improvement of public good? Yes/No. If yes specify the broad areas.

We work through above bodies for advancement of Sustainability agenda across the global textile and apparel supply chain. The areas include environmental improvements in manufacturing sector.

Principle 8 - Businesses should support inclusive growth and equitable development

1. Does the Company have specified programmes/initiatives/projects in pursuit of the policy related to Principle 8? If yes, details thereof.

At Arvind Limited the underlying value system has a firm belief that only in a healthy society healthy businesses flourish. We have well planned, tested and acclaimed initiatives under CSR. The Arvind Limited Policy on Corporate Social Responsibility (ALPCSR) has been put in place to facilitate and formalize the CSR processes, set up a guiding structure and define broader thematic areas for projects and programs. The company has defined three broader themes to bring larger focus in our CSR initiatives. The broad three thematic areas are Educational Advancement, Rural Advancement and Cultural Advancement. All our initiatives ascertains its deep connect to Principle 8 that the Businesses should support inclusive growth and equitable development. The key points of the policy can be reached at our website through the given link: https://www.arvind.com/sites/default/files/field_policy_file/CSR%20Policy%202019.pdf. For more details, refer to http://arvind.com/corporate-social-responsibility.

2. Are the programmes/projects undertaken through in-house team/own foundation/external NGO/government structures/any other organization?

Section 5.04 of our policy specifically mentions about this aspect – our approach to partnerships.

The Company undertakes initiatives for social advancement through specific institutions promoted by the company. SHARDA Trust & NLRDF, the public charitable Trusts having credible history of over two and four decades respectively, are actively working in the urban and rural landscape. In 2015, Arvind Foundation was created as an umbrella organisation for CSR initiatives.

3. Have you done any impact assessment of your initiative?

The management of Arvind Limited is convinced that the impact assessment is an important tool to judge the efficacy and the effectiveness of the programme. Continuous monitoring and evaluation are a part of our program planning and implementation mechanism, which ensures that the programs' achieve the expected impact.

4. What is your Company's direct contribution to community development projects – Amount in INR and the details of the projects undertaken?

The focus of our CSR initiatives is aligned with the broader areas that Schedule VII of the Companies Act has defined or will define from time to time. The areas which are covered are:

Education
Employment Enhancing vocational skills for Employability
Projects and programmes around factory premises
Health
Poverty, Malnutrition, Food, Clothing, Shelter
Environmental Initiatives
Agricultural Initiatives
Water and Sanitation
Art and Cultural Initiatives
Rural Development Initiatives
Other Social Advancement Initiatives

Direct Contribution:

During this year, the covid situation impacted our initiatives badly, some were put on hold or are closed. In this situation, we have not only taken up COVID relief operations but also ensured that the starting of the activities when the pandemic situation improves shouldn't be a cause of worry. To do so, the CSR budget of 2020-21 i.e. Rs. 4.81 crores (after deducting 5% management expense) is given to Corpus.

Projects Undertaken:

The brief account of CSR Initiatives is given in the following paragraphs. For the details of the projects undertaken, refer Annexure I – Board Report.

Educational Support Program Gyanda is a unique supplementary education model designed for primary, secondary and higher secondary school going children studying in Municipal Schools. It prevents these children from dropping out and helps them to complete their basic education from standard V to XII. This program is being managed by SHARDA Trust. During 2019- 20, Gyanda had an enrolment of more than 1,100 students. We anticipate about 30-40% drop in number. No funds were released during 2020-21. The Trust didn't receive any funds from the company and it has managed this initiatives through Group Company's CSR support and its own funding sources.
Promotion of Indology: A project titled "Promotion of Indology" was undertaken to preserve a repository of rare art, manuscripts and archaeological objects of India. The project is being implemented by Lalbhai Dalpatbhai Bhartiya Sanskriti Vidyamandir (LDBSV).The project created a comprehensive digital repository of paper/palm-leaf manuscripts. The pandemic has affected this project too and no funds were released from the Company during 2020-21.
Livelihood Promotion through tribal home stay project: This project focusses on bringing transformation in the lives of tribal people living in Narmada District. The aim was to increase the income of tribal families, this was done through establishing quality home stay facilities for tourist at rural homes. This particular intervention was selected since the Taluka has the advantage of hosting the World's tallest statue – The Statue of Unity which is a major tourist destination there and hence a huge potential of additional alternative income for the native tribal families. Through our implementation, linkage for 26 tribal families with dignified livelihood was done in record time and project is creating lasting impact in the lives of people. The project was complete during 2020-21.
Arvind Rural Transformation Initiative (ARTI) – This program is a combination of long term integrated programs focused in defined geographies in Ahmedabad, Gandhinagar and Narmada districts of Gujarat which are in proximity to our Santej unit. Through this program, Farmers' training on sustainable agricultural farming and an orientation on the concept of Farmer Producer Organisation (FPO) was organised in spite of pandemic. A group of women got training for advanced animal husbandry and best dairy practices. 140 women from Hazipur and Jetlej villages have been assessed through a Need

assessment process for non-farm livelihood and 30 women have shown their readiness for enterprise setup. We will take up this program shortly. Though this program also took a hit due to pandemic, a component of COVID relief was added which was the need of the hour from our funds over and above 2% CSR budget.

Promoting Inner Well Being through meditation programs among masses. We have conviction that the physical and social developments are meaningful only if people are also well and experience peace from within. This program is based on the Sahaj Marg system of meditation called Heartfulness and it reached to close to 200 places and around 15,000 people during 2019-20. This programme was hugely hit due to pandemic as movement to the distant rural location wasn't possible. The partner organization SHARDA continued supporting this initiative, though at much lower scale. Hence, for the company, we considered this as a project completed. We will again have a relook at the project when the impact of pandemic is over. No funds were released during 2020-21.
Young people's empowerment program (YPEP): As part of our commitment towards the Educational Advancement, the company initiated a program YPEP with Collective Good Foundation (CGF). The program is designed to empower and equip women with knowledge, skills and abilities to enable their entry in white collar jobs and self-employment opportunities.
COVID Relief: The Company undertook the COVID relief operations in the areas where we operate and also extended this to the front line workers in the health and security sector elsewhere through the Arvind Foundation and SHARDA Trust. As we write this report, these operations continue during the year 2021-22 also, in a much larger scale.
5. Have you taken steps to ensure that the community successfully adopts this community development initiative? Please explain in 50 words, or so.

Our program philosophy follows a participative approach from all the stakeholders including the community. Community dialogue and engagement is a continuous process. Feedback from the community is incorporated for making the program more community need oriented and increase the efficacy of our efforts. Need assessments, focus group discussions, formation of community groups, continuous monitoring ensure that the community successfully adopts the program and becomes an active participant and not just a beneficiary. However, some programs like our Educational initiative Gyanda, though have been very well adopted by parents and students, require continuous support as the students complete their education and go out and new set of students join. Such projects which are continuous in nature (we are managing this programme for last 12 years), will continue to seek support and adoption by stakeholder also is a continuous process.

Principle 9 - Businesses should engage with and provide value to their customers and consumers in a responsible manner

1. What percentage of customer complaints/consumer cases are pending as on the end of financial year.

We resolve all the customer queries and complaints in timely and efficient manner. There are no long-standing complaints that are pending resolution.

2. Does the Company display product information on the product label, over and above what is mandated as per local laws? Yes/No/N.A./Remarks (additional information)

We display the information on products as mandated by law or by customer requirements.

3. Is there any case filed by any stakeholder against the Company regarding unfair trade practices, irresponsible advertising and/or anti-competitive behavior during the last five years and pending as on end of financial year? If so, provide details thereof, in about 50 words or so.

Not applicable.

4. Did your Company carry out any consumer survey/ consumer satisfaction trends?

Not during recently concluded financial year.

TO THE MEMBERS OF ARVIND LIMITED

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements of Arvind Limited ("the Company"), which comprise the Balance Sheet as at 31, 2021, and the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Cash Flows and the Statement of Changes in Equity for the year then ended, and a summary of significant accounting policies and other explanatory information. March

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 ("the Act") in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, ("Ind AS") and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2021, and its profit, total comprehensive income, its cash flows and the changes in equity for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing specified under section 143(10) of the Act (SAs). Our responsibilities under those Standards are further described in the Auditor's Responsibility for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI's Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.

Sr. No.	Key Audit Matter Description	How the key Audit Matter Was Addressed in the Audit
1	Revenue recognition – cut off	Principal Audit Procedures performed:
	Revenue is one of the key profit dri v e rs a nd is t h e re fore susceptible to misstatement.	Our audit process consisted testing of the design and operating effectiveness of the

Sr. No.	Key Audit Matter Description	How the key Audit Matter Was Addressed in the Audit
	Cut-off is the key assertion in so far as revenue recognition is concerned. There is a risk that revenue is recognized on sale of goods around the year end without substantial transfer of control and is not in accordance with Ind AS-115 "Revenue from Contracts with Customers".	i n t e r n a l c o n t r o l s a n d substantive testing are as follows: • W e o b t a i n e d a n understanding of process and evaluated the design, i m p l e m e n t a t i o n a n d operating effectiveness of management's internal controls in relation to revenue recognition from sale of goods. We tested the Company's control over t i m i n g o f r e v e n u e recognition around year end. • At the year end, we have performed the cut off testing for late cut off to test that the revenue is recorded in the appropriate period. We have traced sales with proof of delivery (POD) to confirm the recognition of sales.

Information Other than the Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the other information. The other information comprises the information included in the Director's report, but does not include the consolidated financial statements, standalone financial statements and our auditor's report thereon.

Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the Ind AS and other accounting principles generally accepted in India. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgements and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statement that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the standalone financial statements, management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the Company's financial reporting process.

Auditor's Responsibility for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal financial control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management.
Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the standalone financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the standalone financial statements.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

Report on Other Legal and Regulatory Requirements

1. As required by Section 143(3) of the Act, based on our audit we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, the Statement of Cash Flows and Statement of Changes in Equity dealt with by this Report are in agreement with the relevant books of account.
d) In our opinion, the aforesaid standalone financial statements comply with the Ind AS specified under Section 133 of the Act.
e) On the basis of the written representations received from the directors as on March 31, 2021 taken on record by the Board of Directors, none of the directors is disqualified as

on March 31, 2021 from being appointed as a director in terms of Section 164(2) of the Act.

f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure A". Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company's internal financial controls over financial reporting.
g) With respect to the other matters to be included in the Auditor's Report in accordance with the requirements of section 197(16) of the Act, as amended, in our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of section 197 of the Act.
h) With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements.
ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
1. As required by the Companies (Auditor's Report) Order, 2016 ("the Order") issued by the Central Government in terms of Section 143(11) of the Act, we give in "Annexure B" a statement on the matters specified in paragraphs 3 and 4 of the Order.

For DELOITTE HASKINS & SELLS LLP

Chartered Accountants (Firm's Registration No. 117366W/W-100018)

Kartikeya Raval

Partner (Membership no. 106189) (UDIN: 21106189AAAAFG8147)

Place: Ahmedabad Date: May 26, 2021

ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1(f) under 'Report on Other Legal and Regulatory Requirements' section of our report of even date)

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")

We have audited the internal financial controls over financial reporting of Arvind Limited ("the Company") as of March 31, 2021 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company's policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financial controls over financial reporting of the Company based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") issued by the Institute of Chartered Accountants of India and the Standards on Auditing prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company's internal financial controls system over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion, to the best of our information and according to the explanations given to us, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2021, based on the criteria for internal financial control over financial reporting established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.

For DELOITTE HASKINS & SELLS LLP

Chartered Accountants (Firm's Registration No. 117366W/W-100018)

Kartikeya Raval

Partner (Membership no. 106189) (UDIN: 21106189AAAAFG8147)

Place: Ahmedabad Date: May 26, 2021

ANNEXURE "B" TO THE INDEPENDENT AUDITORS' REPORT

(Referred to in paragraph 2 under "Report on Other Legal and Regulatory Requirements" section of our report of even date)

(i) In respect of its Property, plant and equipment (including Capital work in progress):
(a) The Company has maintained proper records showing full particulars, including quantitative details and situation of Property, plant and equipment.
(b) Some of the Property, plant and equipment were physically verified by the management in accordance with a programme of verification which in our opinion provides for physical verification of the Property, plant and equipment at reasonable intervals. According to the information and explanation given to us, no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and the records examined by us and based on the examination of the registered sale deed / transfer deed / conveyance deed provided to us, we report that, the title deeds, comprising all the immovable properties of land and acquired buildings which are freehold, are held in the name of the Company as at the balance sheet date, except the following:

Particulars	Total No. of Cases	Area	Amount (Gross Carrying amount as at the balance sheet date)	Amount (Net Carrying amount as at the balance sheet date)
Freehold land	46	4,13,126 Sq. Mtr.	99.37 `<br>crores \| 99.37<br>` crores	The Company is in process to register title deed in its name.
Freehold Acquired Building	8	10,373 Sq. Mtr.	16.28 `<br>crores \| 15.16<br>` crores
Freehold Land	6	2,85,662 Sq. Mtr.	21.27 `<br>crores \| 21.27<br>` crores	The title deeds are in the name of Arvind Brands and Retail Limited,
Freehold Acquired Building	6	916 Sq. Mtr.	1.03 `<br>crores \| 1.01<br>` crores	Arvind Fashion Limited and Dholka Texti le Par k Pri vate Limited (erstwhile companies) which were merged with the Company under s c h e m e o f a m a l g a m a t i o n sanctioned by National Company Law Tribunal vide its order dated August 24, 2017, with effect from April 1, 2016. The Company is in process to register title deed in its name.

Immovable properties of land whose title deeds have been pledged as security for loans, guarantees, etc. are held in the name of the Company based on the confirmations directly received by us from lenders.

In respect of immovable properties of land that have been taken on lease and disclosed as Property, plant and equipment in the Standalone financial statements, the lease agreements are in the name of the Company, where the Company is the lessee in the agreements.

(ii) As explained to us, the inventories were physically verified during the year by the Management at reasonable intervals and no material discrepancies were noticed on physical verification.
(iii) According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured, to Companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013.
(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provision of section 185 and 186 of the Act in respect of grant of loans, making investment and providing guarantees and securities, as applicable.
(v) According to the information and explanations given to us, the Company has not accepted any deposits during the year from the public to which the directives issued by the Reserve Bank of India and the provisions of Section 73 to 76 or any other relevant provisions of the Act and the Companies (Acceptance of Deposits) Rules, 2014, as amended, would apply. Accordingly, the provisions of Cause 3(v) of the Order are not applicable to the Company.
(vi) The maintenance of cost records have been specified by the central government under section 148(1) of the act. We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules, 2014, as amended prescribed by the Central Government under sub-section (1) of Section 148 of the Act, and are of the opinion that, prima facie, the prescribed cost records have been made and maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
(vii) According to the information and explanations given to us in respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Employees' State Insurance, Sales Tax, Excise Duty, Service Tax, Value Added Tax, Goods and Service Tax, Custom Duty, Income tax, Cess and other material statutory dues applicable to the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Provident Fund, Sales Tax, Goods and Service Tax, Service Tax, Income tax, Cess and other material statutory dues in arrears as at March 31, 2021 for a period of more than six months from the date they became payable.
(c) Details of Income Tax, Excise Duty, Custom Duty, Service Tax, Sales Tax and Value Added Tax dues which have not been deposited as on March 31, 2021 on account of disputes are given below:

Name of Statute	Nature of Dues	Amount involved and Unpaid (` in crores)	Period to which the Amount Relates	Forum where Dispute is pending
The Income Tax Act, 1961	Income Tax	9.73 `	2004-05, 2008-09 20014-15, 2015-16	Commissioner of Income Tax Appeal
		4.92 `	2005-06, 2011-12, 2012-13	Income Tax Appellate Tribunal
		` 0.12	2005-06	High Court
The Central Excise Act, 1944	Excise Duty	9.18 `	1999-00, 2000-01	Supreme Court
		1.06 `	2000-01, 2001-02, 2002-03, 2003-04	High Court
		0.47 `	2008-09	Assistant Commissioner
The Customs Act, 1962	Custom Duty	2.88 `	2012-13	Customs, Excise and Service Tax Appellate Tribunal
The Finance Act, 1994	Service Tax	7.76 `	2004-05 to 2017-18	Assistant Commissioner
		0.07 `	2004-05, 2007-08	Commissioner
		0.40 `	2017-18	Commissioner (Appeal)
		0.44 `	2003-04 to 2007-08 2012-13, 2013-14	Customs, Excise and Service Tax Appellate Tribunal
Gujarat Value Added Tax Act, 2003	Value Added Tax	3.87 `	2006-07, 2007-08	Joint Commissioner (Appeal)
Maharashtra Value Added Tax Act, 2003	Value Added Tax	5.73 `	2014-15	Assistant Commissioner
Central Sales Tax Act, 1956	Central Sales Tax	0.62 `	2007-08	Joint Commissioner (Appeal)
		` 4.73	2014-15	Assistant Commissioner
		0.60 `	2005-06	Deputy Commissioner

(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of dues as at March 31, 2021 to financial institutions, banks and debenture holders. The Company has not borrowed money from Government
(ix) The Company has not raised money by way of initial public offer/further public offer (including debt instruments). In our opinion and according to the information and explanation given to us, money raised by way of term loans during the year have been applied by the Company for the purposes for which they were raised other than pending temporary deployment pending application of proceeds.
(x) To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no material fraud on the Company by its officers or employees has been noticed or reported during the year.
(xi) In our opinion and according to the information and explanations given to us, the Company has paid / provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.

(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of the Order is not applicable.
(xiii) In our opinion and according to the information and explanations given to us, the Company is in compliance with Section 188 and 177 of the Act, where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the Standalone Ind AS financial statements as required by the applicable accounting standards.
(xiv) During the year, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures and hence reporting under clause (xiv) of the Order is not applicable to the Company.
(xv) In our opinion and according to the information and explanations given to us, during the year the Company has not entered into any non-cash transactions with its directors or persons connected with him and hence provisions of section 192 of the Act are not applicable.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.

For DELOITTE HASKINS & SELLS LLP

Chartered Accountants (Firm's Registration No. 117366W/W-100018)

Kartikeya Raval

Partner (Membership no. 106189) (UDIN: 21106189AAAAFG8147)

Place: Ahmedabad Date: May 26, 2021

Standalone Balance Sheet as at March 31, 2021

			` in Crores
Particulars	Notes	As at	As at
		March 31, 2021	March 31, 2020
ASSETS
Non-current assets
(a) Property, plant and equipment	5	3,133.64	3,256.96
(b) Capital work-in-progress		74.15	70.29
(c) Investment properties	6	30.53	35.81
(d) Intangible assets	7	44.18	78.28
(e) Intangible assets under development (f) Right of Use Assets	38	0.33 49.41	0.29 89.72
(g) Financial assets
(i) Investments	8 (a)	531.97	525.47
(ii) Loans	8 (c)	0.68	0.94
(iii) Other financial assets	8 (f)	74.41	30.05
(h) Other non-current assets	9	31.00	8.73
Total non-current assets (A)		3,970.30	4,096.54
Current assets
(a) Inventories	10	998.70	1,038.46
(b) Financial assets
(i) Trade receivables	8 (b)	933.68	898.32
(ii) Cash and cash equivalents	8 (d)	9.80	20.61
(iii) Bank balance other than (ii) above	8 (e)	9.45	9.51
(iv) Loans (v) Other financial assets	8 (c) 8 (f)	257.68 91.99	305.15 87.37
(c) Current tax assets (net)	11	12.28	19.58
(d) Other current assets	9	234.12	248.53
Total current assets (B)		2,547.70	2,627.53
Assets classified as held for Sale (C)		90.73	90.48
TOTAL ASSETS (A) + (B) + (C)		6,608.73	6,814.55
EQUITY AND LIABILITIES
Equity
(a) Equity share capital (b) Other equity	12 13	258.92 2,682.08	258.77 2,594.92
Total equity (A)		2,941.00	2,853.69
LIABILITIES
Non-current liabilities
(a) Financial liabilities
(i) Borrowings	14 (a)	1,100.37	953.21
(ii) Lease Liabilities	38	54.03	91.70
(iii) Other financial liabilities	14 (c)	9.37	6.35
(b) Long-term provisions	15	24.24	42.16
(c) Deferred tax liabilities (net)	28	5.24	22.01
(d) Government grants	16	67.72	68.55
Total non-current liabilities (B) Current liabilities		1,260.97	1,183.98
(a) Financial liabilities
(i) Borrowings	14 (a)	600.56	1,111.83
(ii) Lease Liabilities	38	17.62	26.30
(iii) Trade payables
- Total Outstanding dues of Micro Enterprises and Small Enterprises	14 (b)	38.22	8.93
- Total Outstanding dues other then Micro Enterprises and Small Enterprises	14 (b)	1,284.18	1,109.38
(iv) Other financial liabilities	14 (c)	337.34	417.86
(b) Short-term provisions	15	8.99	13.06
(c) Government grants	16	7.36	6.71
(d) Other current liabilities	17	112.49	82.81
Total current liabilities (C) TOTAL EQUITY AND LIABILITIES (A) + (B) + (C)		2,406.76 6,608.73	2,776.88 6,814.55
See accompanying notes forming part of the standalone financial statements

In terms of our report attached Chartered Accountants

Date: Date: Place: Place:

For Deloitte Haskins & Sells LLP For and on behalf of the board of directors of Arvind Limited

Kartikeya Raval Sanjay S. Lalbhai Jayesh K. Shah DIN: 00008329 DIN: 00008349

Partner Chairman & Managing Director Director & Chief Financial Officer

Company Secretary Ahmedabad Ahmedabad R. V. Bhimani May 26, 2021 May 26, 2021

Standalone Statement of profit and loss for the year ended March 31, 2021

				` in Crores
	Particulars	Notes	Year ended March 31, 2021	Year ended March 31, 2020
I.	INCOME
	(a) Revenue from operations	18	4,528.54	6,705.31
	(b) Other income	19	64.62	80.16
	TOTAL INCOME		4,593.16	6,785.47
II.	EXPENSES
	(a) Cost of raw materials and accessories consumed	20	1,952.93	3,158.37
	(b) Purchase of stock-in-trade	21	107.44	214.71
	(c) Changes in inventories of finished goods, work-in-progress and stock-in-trade	22	131.16	64.27
	(d) Project expenses		23.97	27.69
	(e) Employee benefits expense	23	586.88	776.12
	(f) Finance costs	24	209.65	224.10
	(g) Depreciation and amortisation expense	25	236.43	240.54
	(h) Other expenses	26	1,261.73	1,770.74
	TOTAL EXPENSES		4,510.19	6,476.54
III.	PROFIT BEFORE EXCEPTIONAL ITEMS AND TAX (I-II)		82.97	308.93
IV.	Exceptional items	27	26.93	58.82
V.	PROFIT BEFORE TAX (III-IV)		56.04	250.11
VI.	Tax expense	28
	(a) Current tax		3.40	48.71
	(b) Short/(excess) provision related to earlier years		(4.83)	11.95
	(c) Deferred tax (Credit)/ charge Total tax expense		(35.20) (36.63)	18.07 78.73
	VII. PROFIT FOR THE YEAR (V-VI)		92.67	171.38
	VIII. Other comprehensive income/(Loss)
A.	Items that will not be reclassified to Profit and Loss
	(i) Remeasurement gain/(loss) of defined benefit plans		22.27	0.60
	(ii) Income tax related to items no (i) above		(7.78)	(0.21)
	Net other comprehensive income/(loss) not to be reclassified to
	profit or loss in subsequent periods		14.49	0.39
B.	Items that will be reclassified to Profit & Loss
	(i) Effective portion of gain/(loss) on cash flow hedges		53.62	(77.34)
	(ii) Income tax related to items no (i) above		(18.74)	27.03
	Net other comprehensive income/(loss) that will be reclassified to
	profit or loss in subsequent periods		34.88	(50.31)
	TOTAL OTHER COMPREHENSIVE INCOME/(LOSS) FOR THE YEAR, NET OF TAX (VIII) = (A+B)		49.37	(49.92)
IX.	TOTAL COMPREHENSIVE INCOME FOR THE YEAR, NET OF TAX (VII+VIII)		142.04	121.46
X.	Earning per equity share [nominal value per share ` 10]	36
	- Basic		3.58	6.62
	- Diluted		3.57	6.62
	See accompanying notes forming part of the standalone financial statements

In terms of our report attached

Chartered Accountants

Place: Ahmedabad Place: Ahmedabad Date: May 26, 2021 Date: May 26, 2021

For Deloitte Haskins & Sells LLP For and on behalf of the board of directors of Arvind Limited

Kartikeya Raval Sanjay S. Lalbhai Jayesh K. Shah

Partner Chairman & Managing Director Director & Chief Financial Officer DIN: 00008329 DIN: 00008349

R. V. Bhimani

Company Secretary

Standalone Statement of cash flows for the year ended March 31, 2021

					` in Crores
	Particulars	Year ended March 31, 2021		Year ended March 31, 2020
A	Cash Flow from Operating activities
	Profit after taxation		92.67		171.38
	Adjustments to reconcile profit after tax to net cash flows:
	Depreciation and Amortization expense	236.43		240.54
	Interest Income	(24.20)		(35.48)
	Tax Expense/(Credit)	(36.63)		78.73
	Finance Costs	209.66		224.10
	Dividend Income	-		(5.50)
	Allowances for doubtful debts	0.55		3.28
	Sundry Debit Written off	0.25		1.27
	Share of Loss from LLP	0.32		0.30
	Provision for Non moving inventory	31.97		39.69
	Foreign Exchange Loss / (Gain)	5.31		(9.05)
	Profit on Sale of Property, plant and equipment	(9.61)		2.19
	Excess Provision written back	(1.44)		(0.48)
	Share based payment expense	1.12		1.12
	Government grant income	(7.05)		(6.31)
	Loss of Mark to market of derivative financial instruments	(10.28)		11.40
	Provision for Diminution in value of share application money	-		1.49
	Provision for Diminution in Value of Investments	(16.52)		21.79
	Allowances for doubtful loan	1.12		0.81
	Reversal of Excise Duty Provision	-		(4.95)
	Loss on Sale of Investments	40.10		-
	Financial guarantee commission income	(1.30)		(1.10)
			419.80		563.84
	Operating Profit before Working Capital Changes		512.47		735.22
	Adjustments for changes in working capital :
	(Increase) / Decrease in Inventories	15.89		308.04
	(Increase) / Decrease in trade receivables	(42.54)		(177.67)
	(Increase) / Decrease in other financial assets	19.46		47.49
	(Increase) / Decrease in other current assets	20.03		117.57
	Increase / (Decrease) in trade payables	205.40		(72.11)
	Increase / (Decrease) in other financial liabilities	6.93		(9.72)
	Increase / (Decrease) in other current liabilities Increase / (Decrease) in provisions	29.67 0.27		35.18 1.11
	Net Changes in Working Capital		255.11		249.89
	Cash Generated from Operations		767.58		985.11
	Direct Taxes (Paid) / Refund (Net)		0.65		(2.20)
	Net Cash Flow from Operating Activities (A)		768.23		982.91
B	Cash Flow from Investing Activities
	Purchase of Property, plant and equipment and intangible assets	(96.61)		(321.61)
	Proceeds from disposal of Property, plant and equipment	19.00		16.31
	Purchase of Investments	(160.00)		(31.02)
	Proceeds from disposal of Investments	28.71		-
	Changes in other bank balances not considered as
	cash and cash equivalents	(0.40)		(1.23)
	Loans Repaid / (Given) (Net)	46.62		(50.46)
	Dividend Received	-		5.50
	Interest Received	25.08		45.97
	Net Cash Flow from/(used in) Investing Activities (B)		(137.60)		(336.54)

Standalone Statement of cash flows for the year ended March 31, 2021 (Contd.)

	` in Crores
Year ended March 31, 2021	Year ended March 31, 20120

0.15	0.86
-	(61.82)
632.13	446.65
(519.75)	(360.98)
(511.27)	(424.51)
(22.94)	(33.47)
(219.66)	(216.73)
(641.34)	(650.00)

(10.71)	(3.63)
19.21	22.84
8.50	19.21

Reconciliation of cash and cash equivalents

Particulars	Year ended March 31, 2021	Year ended March 31, 2020
Cash and cash equivalents :
Cash on Hand	0.01	0.01
Cheques on hand	-	3.77
Balances with Banks	9.79	16.83
Cash and cash equivalents as per Balance Sheet (Refer note 8 (d))	9.80	20.61
Less: Book Overdrafts (Refer note 14 (c))	(1.30)	(1.40)
Cash and cash equivalents as per Cash flow Statement	8.50	19.21

See accompanying notes forming part of the financial statements

Disclosure under Para 44A as set out in Ind As 7 on cash flow statements under Companies (Indian Accounting Standards) Rules, 2015 (as amended)

	Note	As at	Net		Non Cash Changes		As at
Particulars of liabilities arising from financing activity	No.	March 31, 2020	cash flows	Other changes *	Impact due to IndAS 116	Fair value adjustment on interest free inter corpo rate deposits	March 31, 2021
Borrowings :
Long term borrowings	14 (a)	1,200.84	112.38	-	-	-	1,313.22
Short term borrowings	14 (a)	1,111.83	(511.27)	-	-	-	600.56
Interest accrued on borrowings	14 (c)	19.11	(19.11)	8.42	-	-	8.42
Lease Liabilities	38	118.00	-	-	(46.35)	-	71.65
Total		2,449.78	(418.00)	8.42	(46.35)	-	1,993.85

* The same relates to amount charged in statement of profit and loss.

1 The cash flow statement has been prepared under the indirect method as set out in Indian Accounting Standard (Ind AS 7) statement of cash flows.

In terms of our report attached		For and on behalf of the board of directors of Arvind Limited
For Deloitte Haskins & Sells LLP	Sanjay S. Lalbhai	Jayesh K. Shah
Chartered Accountants	Chairman & Managing Director	Director & Chief Financial Officer
Kartikeya Raval	DIN: 00008329	DIN: 00008349
Partner
	R. V. Bhimani
	Company Secretary
Place: Ahmedabad	Place: Ahmedabad
Date: May 26, 2021	Date: May 26, 2021

Notes:

Standalone Statement of changes in equity for the year ended March 31, 2021

A.Equity share capital
Particulars	Balance atthe beginning ofthe reporting	year	Changes in Equity during the year Share Capital		Balance atthe reporting	year end ofthe
March 31, 2020 March 31, 2021 Forthe year ended Forthe year ended		258.62 258.77		0.15 0.15		258.77 258.92
Other equity B.
				Reserves and Surplus					Comprehensive Income Items of Other		other Total
Particulars	Reserve Capital	Share based payment reserve	Rede Capital mption Reserve	Securities premium	malg Reserve amation A	Debenture Redem ption Reserve	General Reserve	Earnings Retained	Effective portion of gain or cash flow hedges loss on	Equity Ins truments through Other Co mprehens ive Income (FVOCI)	equity
Balance as at April1, 2019	26.71	12.37	69.50	564.77	34.20	50.00	35.65	1,740.03	23.78	0.49	2,557.50
Profitforthe year	-	-	-	-	-	-	-	171.38	-	-	171.38
Total Comprehensive income for the year Other comprehensive income forthe year	- -	- -	- -	- -	- -	- -	- -	0.39 171.77	(50.31) (50.31)	- -	121.46 (49.92)
Less:Utilized during the year	-	-	-	(5.19)	-	-	-	-	-	-	(5.19)
Scheme Add: Issue of Shares under Employee StockOption	-	1.13	-	0.71	-	-	-	-	-	-	1.84
Add /(Less): Transferfromshare based paymentreserve	-	-	-	1.72	-	-	-	-	-	-	1.72
Add /(Less): Transferto securities premium	-	(1.72)	-	-	-	-	-	- (29.00)	-	-	(1.72) (29.00)
Add :Deferred Tax on IndAS 116 transitionAdjustment Less: IndAS 116 transitionAdjustment( Refer note 38)	-	-	-	-	-	-	-		-	-
Refer note 38) (	-	-	-	-	-	-	-	10.13	-	-	10.13
Less:Dividend Paid during the year	-	-	-	-	-	-	-	(51.75)	-	-	(51.75)
Less:Dividend distribution tax onDividend paid Balance as at March 31, 2020	- 26.71	- 11.78	- 69.50	- 562.01	- 34.20	- 50.00	- 35.65	(10.07) 1,831.11	- (26.53)	- 0.49	(10.07) 2,594.92
Balance as at April1, 2020	26.71	11.78	69.50	562.01	34.20	50.00	35.65	1,831.11	(26.53)	0.49	2,594.92
Profitforthe year	-	-	-	-			-	92.67	-	-	92.67
Less: Loss on Sale ofInvestment	(56.01)	-	-	-	-	-	-	-	-	-	(56.01)
Total Comprehensive income for the year Other comprehensive income forthe year	- (56.01)	- -	- -	- -	-	-	- -	14.49 107.16	34.88 34.88	- -	49.37 86.03
Add: Issue of Shares under Employee StockOption Scheme	-	1.13	-	-	-	-	-	-	-	-	1.13
Add /(Less): Transferfromshare based paymentreserve	-	-	-	1.02	-	-	-	-	-	-	1.02
Add /(Less): Transferto securities premium	-	(1.02)	-	-	-	-	-	-	-	-	(1.02)
Add /(Less): Transferfromdebenture redemption reserve	-	-	-	-	-	-	50.00	-	-	-	50.00
Add /(Less): Transferto generalreserve	-	-	-	-	-	(50.00)	-	-	-	-	(50.00)
Balance as at March 31, 2021	(29.30)	11.89	69.50	563.03	34.20	-	85.65	1,938.27	8.35	0.49	2,682.08
See accompanying notesforming part ofthe financialstatements
In terms of ourreport attached				For and on behalf ofthe board of directors of			Arvind Limited
For DeloitteHaskins & Sells LLP			Sanjay S. Lalbhai			Jayesh K. Shah				R. V. Bhimani
CharteredAccountants Kartikeya Raval			DIN:00008329 Chairman&	ManagingDirector		DIN:00008349	Director&Chief FinancialOfficer			Company Secretary
Partner

Ahmedabad Ahmedabad Date: Date: Place: Place: May 26, 2021 May 26, 2021

Notes to the Standalone Financial Statement for the year ended March 31, 2021

1. Corporate Information

Arvind Limited ('the Company') is one of India's leading vertically integrated textile company with the presence of almost eight decades in this industry. It is among the largest denim manufacturers in the world. It also manufactures a range of cotton shirting, denim, knits and bottom weights (Khakis) fabrics and Jeans and Shirts Garments. The Company also has the presence in Telecom business directly and through its subsidiaries and joint venture companies. The Company has made foray into Technical Textiles on its own and in joint venture with leading global players.

The Company is a Public Limited Company domiciled in India and incorporated under the provisions of the Companies Act, 2013 ("the Act" erstwhile Companies Act, 1956) applicable in India. Its equity shares are listed on the National Stock Exchange ("NSE") and the BSE Limited. The registered office of the Company is located at Naroda Road, Ahmedabad - 380025.

The financial statements have been considered and approved by the Board of Directors at their meeting held on May 26, 2021.

2. Statement of Compliance and Basis of Preparation:

The financial statements have been prepared on a historical cost convention on the accrual basis except for the certain financial assets and liabilities measured at fair value, the provisions of the Companies Act, 2013 to the extent notified ("the Act").

Accounting policies were consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standards requires a change in the accounting policy hitherto in use.

These financial statements comprising of Balance Sheet, Statement of Profit and Loss including other comprehensive income, Statement of Changes in Equity and Statement of Cash Flows as at March 31, 2021 have been prepared in accordance with Ind AS as prescribed under Section 133 of the Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016.

Rounding of amounts

The financial statements are presented in Indian Rupee ("INR") and all values are rounded to the nearest crore as per the requirement of Schedule III, except when otherwise indicated. Figures less than ` 50,000 which are required to be shown separately, have been shown actual in brackets.

3. Summary of Significant Accounting Policies

3.1. Current versus non-current classification

The Company presents assets and liabilities in the Balance Sheet based on current/non-current classification.

An asset is current when it is:

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

Held primarily for the purpose of trading;
Expected to be realised within twelve months after the reporting period; or
Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is current when:

It is expected to be settled in the normal operating cycle;
It is held primarily for the purpose of trading;
It is due to be settled within twelve months after the reporting period; or
There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

The Company classifies all other liabilities as non-current.

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

Operating cycle

For the purpose of current/non-current classification of assets and liabilities, the Company has ascertained its normal operating cycle as twelve months. This is based on the nature of services and the time between the acquisition of assets or inventories for processing and their realization in cash and cash equivalents.

Non-Current Assets classified as held for sale

The Company classifies non-current assets as held for sale if their carrying amounts will be recovered principally through a sale rather than through continuing use of the assets and actions required to complete such sale indicate that it is unlikely that significant changes to the plan to sell will be made or that the decision to sell will be withdrawn. Also, such assets are classified as held for sale only if the management expects to complete the sale within one year from the date of classification.

Non-current assets classified as held for sale are measured at the lower of their carrying amount and the fair value less cost to sell. Non-current assets are not depreciated or amortized.

3.2. Use of estimates and judgements

The estimates and judgements used in the preparation of the financial statements are continuously evaluated by the Company and are based on historical experience and various other assumptions and factors (including expectations of future events) that the Company believes to be reasonable under the existing circumstances. Difference between actual results and estimates are recognised in the period in which the results are known / materialised.

Following are significant estimates (For details refer note 4.1)

• Taxes

Useful life of Property, plant and equipment and Intangible Assets
Provisions and contingencies
Defined benefit plans

The said estimates are based on the facts and events, that existed as at the reporting date, or that occurred after that date but provide additional evidence about conditions existing as at the reporting date.

3.3. Business combinations and goodwill

Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the consideration transferred measured at acquisition date fair value and the amount of any non-controlling interests in the acquiree. For each business combination, the Company elects whether to measure the non-controlling interests in the acquiree at fair value or at the proportionate share of the acquiree's identifiable net assets.

Acquisition-related costs are expensed as incurred.

At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognised at their acquisition date fair values. For this purpose, the liabilities assumed include contingent liabilities representing present obligation and they are measured at their acquisition fair values irrespective of the fact that outflow of resources embodying economic benefits is not probable. However, the following assets and liabilities acquired in a business combination are measured at the basis indicated below:

Deferred tax assets or liabilities, and the assets or liabilities related to employee benefit arrangements are recognised and measured in accordance with Ind AS 12 Income Tax and Ind AS 19 Employee Benefits respectively.
Liabilities or equity instruments related to share based payment arrangements of the acquiree or share – based payments arrangements of the Company entered into to replace share-based payment arrangements of the acquiree are measured in accordance with Ind AS 102 Share-based Payments at the acquisition date.
Assets (or disposal groups) that are classified as held for sale in accordance with Ind AS 105 Non-current Assets Held for Sale and Discontinued Operations are measured in accordance with that standard.
Reacquired rights are measured at a value determined on the basis of the remaining contractual term of the related contract. Such valuation does not consider potential renewal of the reacquired right.

When the Company acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic circumstances and pertinent conditions as at the acquisition date. This includes the separation of embedded derivatives in host contracts by the acquiree.

If the business combination is achieved in stages, any previously held equity interest is re-measured at its acquisition date fair value and any resulting gain or loss is recognised in profit or loss or OCI, as appropriate.

Any contingent consideration to be transferred by the acquirer is recognised at fair value at the acquisition date. Contingent consideration classified as an asset or liability that is a financial instrument and within the scope of Ind AS 109 Financial Instruments, is measured at fair value with changes in fair value recognised in profit or loss. If the contingent consideration is not within the scope of Ind AS 109, it is measured in accordance with the appropriate Ind AS. Contingent consideration that is classified as equity is not re-measured at subsequent reporting dates and subsequent to its settlement is accounted for within equity.

Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred and the amount recognised for non-controlling interests, and any previous interest held, over the net identifiable assets acquired and liabilities assumed. If the fair value of the net assets acquired is in excess of the aggregate consideration transferred, the Company re-assesses whether it has correctly identified all of the assets acquired and all of the liabilities assumed and reviews the procedures used to measure the amounts to be recognised at the acquisition date. If the reassessment still results in an excess of the fair value of net assets acquired over the aggregate consideration transferred, then the gain is recognised in OCI and accumulated in equity as capital reserve. However, if there is no clear evidence of bargain purchase, the entity recognises the gain directly in equity as capital reserve, without routing the same through OCI.

After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Company's cashgenerating units that are expected to benefit from the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those units.

A cash generating unit to which goodwill has been allocated is tested for impairment annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash generating unit is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro rata based on the carrying amount of each asset in the unit. Any impairment loss for goodwill is recognised in profit and loss statement. An impairment loss recognised for goodwill is not reversed in subsequent periods.

Where goodwill has been allocated to a cash-generating unit and part of the operation within that unit is disposed of, the goodwill

associated with the disposed operation is included in the carrying amount of the operation when determining the gain or loss on disposal. Goodwill disposed in these circumstances is measured based on the relative values of the disposed operation and the portion of the cash-generating unit retained.

If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the Company reports provisional amounts for the items for which the accounting is incomplete. Those provisional amounts are adjusted through goodwill during the measurement period, or additional assets or liabilities are recognised, to reflect new information obtained about facts and circumstances that existed at the acquisition date that, if known, would have affected the amounts recognized at that date. These adjustments are called as measurement period adjustments. The measurement period does not exceed one year from the acquisition date.

Business Combination under Common Control

A business combination involving entities or businesses under common control is a business combination in which all of the combining entities or businesses are ultimately controlled by the same party or parties both before and after the business combination and the control is not transitory. The transactions between entities under common control are specifically covered by Appendix C of Ind AS 103. Such transactions are accounted for using the pooling-of-interest method. The assets and liabilities of the acquired entity are recognised at their carrying amounts of the parent entity's consolidated financial statements with the exception of certain income tax and deferred tax assets. No adjustments are made to reflect fair values, or recognise any new assets or liabilities. The only adjustments that are made are to harmonise accounting policies. The components of equity of the acquired companies are added to the same components within the Company's equity. The difference, if any, between the amounts recorded as share capital issued plus any additional consideration in the form of cash or other assets and the amount of share capital of the transferor is transferred to other equity and is presented separately from other capital reserves. The Company's shares issued in consideration for the acquired companies are recognized from the moment the acquired companies are included in these financial statements and the financial statements of the commonly controlled entities would be combined, retrospectively, as if the transaction had occurred at the beginning of the earliest reporting period presented.

3.4. Foreign currencies

The Company's functional and presentation currency is Indian Rupee. Transactions in foreign currencies are initially recorded by the Company's 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. Differences arising on settlement of such transaction and on translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rate are recognised in profit or loss. They are deferred in equity if they relate to qualifying cash flow hedges.

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 recognised in OCI or profit or loss are also recognised in OCI or profit or loss, respectively).

3.5. Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

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

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

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

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

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

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

Level 1 Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
Level 2 Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.

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

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

The Company's management determines the policies and procedures for both recurring fair value measurement, such as derivative instruments and for non-recurring measurement, such as asset held for sale.

External valuers are involved for valuation of significant assets, such as properties. Involvement of external valuers is decided upon annually by the management after discussion with and approval by the Company's Audit Committee. Selection criteria include market knowledge, reputation, independence and whether professional standards are maintained. Management decides, after discussions with the Company's external valuers, which valuation techniques and inputs to use for each case.

At each reporting date, 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, management verifies the major inputs applied in the latest valuation by agreeing the information in the valuation computation to contracts and other relevant documents.

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 yearly basis.

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

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

Significant accounting judgements, estimates and assumptions
Quantitative disclosures of fair value measurement hierarchy
Property, plant and equipment & Intangible assets measured at fair value on the date of transition
Investment properties
Financial instruments (including those carried at amortised cost)

3.6. Property, plant and equipment

Property, plant and equipment is stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. Such cost includes the cost of replacing part of the plant and equipment and borrowing costs for long-term construction projects if the recognition criteria are met. When significant parts of Property, plant and equipment are required to be replaced at intervals, the company recognises such parts as individual assets with specific useful lives and depreciates them accordingly. Likewise, when a major inspection is performed, its cost is recognised in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognised in profit or loss as incurred. The present value of the expected cost for the decommissioning of an asset after its use is included in the cost of the respective asset if the recognition criteria for a provision are met.

The Company adjusts exchange differences arising on translation difference / settlement of long-term foreign currency monetary items outstanding as at March 31, 2016, pertaining to the acquisition of a depreciable asset, to the cost of asset and depreciates the same over the remaining life of the asset.

Borrowing cost relating to acquisition / construction of fixed assets which take substantial period of time to get ready for its intended use are also included to the extent they relate to the period till such assets are ready to be put to use.

Capital work-in-progress comprises cost of fixed assets that are not yet installed and ready for their intended use at the balance sheet date.

De-recognition

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the Statement of Profit and Loss when the asset is de-recognised.

Depreciation

The carrying value of the property, plant and equipment as on April 1, 2014 are depreciated over remaining useful life of the assets based on independent technical evaluation carried out by external valuer.

Depreciation on property, plant and equipment is provided so as to write off the cost of assets less residual values over their useful lives of the assets, using the straight line method as prescribed under Part C of Schedule II to the Companies Act 2013 except for Plant and Machinery (other than Lab equipment, Power generation plant, Electrical installations, Wind power generation plant and Engineering Equipments which are depreciated as per schedule II of the Companies act, 2013) and Leasehold Improvements.

When parts of an item of property, plant and equipment have different useful life, they are accounted for as separate items (Major Components) and are depreciated over their useful life or over the remaining useful life of the principal assets whichever is less.

Depreciation on Plant and Machinery (other than Lab equipment, Power generation plant, Electrical installations, Wind power generation plant and Engineering Equipments) and Leasehold Improvements are provided on straight-line basis over the useful lives of the assets as estimated by management based on technical assessment of the assets, the estimated usage of the assets, nature of assets, operating condition of the assets, maintenance supports and anticipated technological changes required in the assets. The management estimates the useful lives as follows:

Particulars	Useful Life
Plant and Machinery (other than Lab
equipment, Power generation plant,
Electrical installations, Wind power
generation plant and Engineering
Equipments)	20 Years
Leasehold Improvements	6 Years

The management believes that the useful life as given above best represent the period over which management expects to use these assets. Hence the useful lives for these assets are different from the useful lives as prescribed under Part C of Schedule II to the Companies Act 2013.

Depreciation for assets purchased/sold during a period is proportionately charged for the period of use.

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

3.7. Leases

The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

Company as a lessee

The Company applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. The Company recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets.

i) Right of use assets

The Company recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the lease term. The right of use assets are also subject to impairment.

ii) Lease liabilities

At the commencement date of the lease, the Company recognises lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments are fixed payments. In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset.

iii) Short-term leases and leases of low-value assets

The Company applies the short-term lease recognition exemption to its short-term leases (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption that are considered to be low value. Lease payments on short-term leases and leases of low-value assets are recognised as expense on a straight-line basis over the lease term.

Company as a lessor

Leases in which the Company does not transfer substantially all the risks and rewards of ownership of an asset are classified as operating leases. Rental income from operating lease is recognised on a straight-line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised over the lease term on the same basis as rental income. Contingent rents are recognised as revenue in the period in which they are earned.

3.8. Borrowing cost

Borrowing cost includes interest expense as per Effective Interest Rate (EIR) and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost.

is calculated using a weighted average of rates applicable to relevant general borrowings of the company during the year. Capitalisation of borrowing costs is suspended and charged to profit and loss during the extended periods when the active development on the qualifying assets is interrupted.

All other borrowing costs are expensed in the period in which they occur.

3.9. Investment properties

Property that is held for long-term rental yields or for capital appreciation or both, and that is not occupied by the Company, is classified as investment property. Investment properties are measured initially at cost, including transaction costs. Subsequent to initial recognition, investment properties are stated at cost less accumulated depreciation and accumulated impairment loss, if any.

The cost includes the cost of replacing parts and borrowing costs for long-term construction projects if the recognition criteria are met. When significant parts of the property are required to be replaced at intervals, the Company depreciates them separately based on their specific useful lives. All other repair and maintenance costs are recognised in profit or loss as incurred.

An investment property is derecognised on disposal or on permanently withdrawal from use or when no future economic benefits are expected from its disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the Statement of Profit and Loss when the asset is derecognised.

Transfers are made to (or from) investment property only when there is a change in use. Transfers between investment property, owner-occupied property and inventories are at carrying amount of the property transferred.

Depreciation on Investment property is provided on the straight line method over useful lives of the assets as prescribed under Part C of Schedule II to the Companies Act 2013.

3.10. Intangible Assets

Intangible Assets that the Company controls and from which it expects future economic benefits are capitalised upon acquisition and measured initially:

for assets acquired in a business combination at fair value on the date of acquisition
for separately acquired assets, at cost comprising the purchase price and directly attributable costs to prepare the asset for its intended use.

Revenue expenditure pertaining to research is charged to the Statement of Profit and Loss. Development costs of products are charged to the Statement of Profit and Loss unless a product's technological and commercial feasibility has been established, in which case such expenditure is capitalised.

Following initial recognition, Intangible assets are carried at cost less accumulated amortisation and accumulated impairment losses, if any. Internally generated intangible assets, excluding capitalised development costs, are not capitalised and expenditure is recognised in the Statement of Profit and Loss in the period in which expenditure is incurred.

The useful lives of intangible assets are assessed as finite.

Intangible assets with finite lives are amortised over their useful economic lives and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortisation period or method, as appropriate, and are treated as changes in accounting estimates. The amortisation expense on intangible assets with finite lives is recognised in the Statement of Profit and Loss.

Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the Statement of Profit and Loss when the asset is derecognised.

Amortisation

Software is amortized over management estimate of its useful life of 5 years or License Period whichever is lower and Patent/Knowhow is amortized over its useful validity period. Website is amortized over 5 years.

3.11. Inventories

Inventories of Raw material, Work-in-progress, Finished goods and Stock-in-trade are valued at the lower of cost and net realisable value. However, Raw material and other items held for use in the production of inventories are not written down below cost if the finished products in which they will be incorporated are expected to be sold at or above cost.

Costs incurred in bringing each product to its present location and condition are accounted for as follows:

Raw materials and accessories: cost includes cost of purchase and other costs incurred in bringing the inventories to their present location and condition. Cost is determined on weighted average basis.
Finished goods and work in progress: cost includes cost of direct materials and labour and a proportion of manufacturing overheads based on the normal operating capacity, but excluding borrowing costs. Cost is determined on weighted average basis.
Traded goods: cost includes cost of purchase and other costs incurred in bringing the inventories to their present location and condition. Cost is determined on weighted average basis.

All other inventories of stores, consumables, project material at site are valued at cost. The stock of waste is valued at net realisable value.

Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.

3.12. Impairment of non-financial assets

The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset's recoverable amount. An asset's recoverable amount is the higher of an asset's or cashgenerating unit's (CGU) fair value less costs to sell and its value in use. It is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets of the Company. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs to sell, recent market transactions are taken into account, if available. If no such transactions can be identified, an appropriate valuation model is used. These calculations are corroborated by valuation multiples, quoted share prices for publicly traded subsidiaries or other available fair value indicators.

The Company bases its impairment calculation on detailed budgets and forecasts which are prepared separately for each of the Company's CGU to which the individual assets are allocated. These budgets and forecast calculations are generally covering a period of five years. For longer periods, a long-term growth rate is calculated and applied to project future cash flows after the fifth year.

Impairment losses, including impairment on inventories, are recognised in the Statement of Profit and Loss in those expense categories consistent with the function of the impaired asset, except for a property previously revalued where the revaluation was taken to other comprehensive income. In this case, the impairment is also recognised in other comprehensive income up to the amount of any previous revaluation.

For assets excluding goodwill, an assessment is made at each reporting date as to whether there is any indication that previously recognised impairment losses may no longer exist or may have decreased. If such indication exists, the Company estimates the asset's or CGU's recoverable amount. A previously recognised impairment loss is reversed only if there has been a change in the assumptions used to determine the asset's recoverable amount since the last impairment loss was recognised. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years. Such reversal is recognised in the Statement of Profit and Loss unless the asset is carried at a revalued amount, in which case the reversal is treated as a revaluation increase.

3.13. Revenue Recognition

Effective April 1, 2018, the Company has adopted Ind AS 115 – 'Revenue from contracts with customers', which establishes a comprehensive framework for determining whether, how much and when revenue is to be recognised. Ind AS 115 replaces Ind AS 18 Revenue and Ind AS 11 Construction Contracts.

The Company earns revenue primarily from sale of manufactured goods (fabrics, garments and other textile derivatives). It has applied the principles laid down in Ind AS 115 and determined that there is no change required in the existing revenue recognition methodology. In case of sale to domestic customers, most of the sale is made on ex-factory basis and revenue is recognised when the goods are dispatched from the factory gates. In case of export sales, revenue is recognised on shipment date, when performance obligation is met. The company has considered specific criteria which have been met for each of company's activities as described below while recognising revenue:

Sale of goods – customer loyalty programme (deferred revenue)

The Company operates a loyalty points programme which allows customers to accumulate points when they purchase the products. The points can be redeemed for free products, subject to a minimum number of points being obtained. Consideration received is allocated between the product sold and the points issued, with the consideration allocated to the points equal to their fair value. Fair value of the points is determined by applying a statistical analysis. The fair value of the points issued is deferred and recognised as revenue when the points are redeemed.

Export Incentive

Export incentives under various schemes notified by government are accounted for in the year of exports based on eligibility and when there is no uncertainty in receiving the same.

Interest Income

Interest income from debt instruments are recorded using the effective interest rate (EIR) and accrued on timely basis. The EIR is the rate that exactly discounts the estimated future cash receipts over the expected life of the financial instrument or a shorter period, where appropriate, to the net carrying amount of the financial asset. When calculating the effective interest rate, the Company estimates the expected cash flows by considering all the contractual terms of the financial instrument

(for example, prepayment, extension, call and similar options) but does not consider the expected credit losses. Interest income is included in other income in the statement of profit or loss.

Dividend Income

Dividend income from investments is recognised when the Company's right to receive is established which generally occurs when the shareholders approve the dividend.

Profit or loss on sale of Investments

Profit or Loss on sale of investments are recorded on transfer of title from the Company, and is determined as the difference between the sale price and carrying value of investment and other incidental expenses.

Rental income

Rental income arising from operating leases on investment properties is accounted for on a straight-line basis over the lease terms except in the case where incremental lease reflects inflationary effect and rental income is accounted in such case by actual rent for the period.

Insurance claims

Insurance claims are accounted for to the extent the Company is reasonably certain of their ultimate collection.

3.14. Financial instruments – initial recognition and subsequent measurement

Financial assets and financial liabilities are recognised when a Company becomes a party to the contractual provisions of the instruments. For recognition and measurement of financial assets and financial liabilities, refer policy as mentioned below:

Initial recognition of financial assets and financial liabilities:

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss.

Subsequent measurement of financial assets:

For purposes of subsequent measurement, financial assets are classified in four categories:

(a) Financial assets at amortised cost
(b) Financial assets at fair value through other comprehensive income (FVTOCI)
(c) Financial assets at fair value through profit or loss (FVTPL)
(d) Equity instruments measured at fair value through other comprehensive income (FVTOCI)

(a) Financial assets at amortised cost:

A financial asset is measured at amortised cost if the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows, and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

This category is the most relevant to the Company. After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included in finance income in the profit or loss.

(b) Financial assets at fair value through other comprehensive income

A financial asset is measured at fair value through other comprehensive income if the financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets, and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

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

(c) Financial assets at fair value through profit or loss

Financial assets are measured at fair value through profit or loss unless it is measured at amortised cost or at fair value through other comprehensive income on initial recognition. The transaction costs directly attributable of financial assets at fair value through profit or loss are immediately recognised profit or loss.

The Company may elect to designate a financial asset, which otherwise meets amortized cost or fair value through other comprehensive income criteria, as at fair value through profit or loss. However, such election is allowed only if doing so reduces or eliminates a measurement or recognition inconsistency (referred to as 'accounting mismatch'). The Company has not designated any debt instrument as at FVTPL.

(d) Equity instruments:

All equity investments in scope of Ind AS 109 other than Investment in subsidiaries, Joint Ventures and Associates are measured at fair value. Equity instruments which are held for

trading, are classified as at FVTPL. For all other equity instruments, the Company may make an irrevocable election to present in other comprehensive income subsequent changes in the fair value. The Company makes such election on an instrument-by-instrument basis. The classification is made on initial recognition and is irrevocable.

Equity Investment in subsidiaries, Joint Ventures and Associates are measured at cost as per Ind AS 27 - Separate Financial Statements.

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

Impairment of financial assets

The Company assesses at each reporting date whether a financial asset (or a group of financial assets) such as investments, trade receivables, advances and security deposits held at amortised cost and financial assets that are measured at fair value through other comprehensive income are tested for impairment based on evidence or information that is available without undue cost or effort. Expected credit losses (ECL) are assessed and loss allowances recognised if the credit quality of the financial asset has deteriorated significantly since initial recognition.

Loss allowance for trade receivables with no significant financing component is measured at an amount equal to lifetime ECL. For all other financial assets, ECL are measured at an amount equal to the 12 months ECL, unless there has been significant increase in credit risk from initial recognition in which case these are measured at lifetime ECL. The amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recognised as an impairment gain or loss in Statement of Profit and Loss.

Derecognition of financial assets

Financial assets are derecognised when the right to receive cash flows from the assets has expired, or has been transferred, and the Company has transferred substantially all of the risks and rewards of ownership.

Concomitantly, if the asset is one that is measured at:

(a) amortised cost, the gain or loss is recognised in the Statement of Profit and Loss;
(b) fair value through other comprehensive income, the cumulative fair value adjustments previously taken to reserves are reclassified to the Statement of Profit and Loss unless the asset represents an equity investment in which case the cumulative fair value adjustments previously taken to reserves is reclassified within equity.

Reclassification

When and only when the business model is changed, the Company shall reclassify all affected financial assets prospectively from the reclassification date as subsequently measured at amortised cost, fair value through other comprehensive income, fair value through profit or loss without restating the previously recognised gains, losses or interest and in terms of the reclassification principles laid down in the Ind AS relating to Financial Instruments.

Financial liabilities and equity instruments

Classification as debt or equity

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

Financial liabilities

All financial liabilities are subsequently measured at amortised cost using the effective interest method.

Financial liabilities at fair value through profit or loss

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

Gains or losses on liabilities held for trading are recognised in the profit or loss.

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated at the initial date of recognition, and only if the criteria in Ind AS 109 are satisfied. For liabilities designated as FVTPL, fair value gains/ losses attributable to changes in own credit risks are recognized in OCI. These gains/ loss are not subsequently transferred to Statement of Profit or Loss. However, the Company may transfer the cumulative gain or loss within equity. All other changes in fair value of such liability are recognised in the statement of profit or loss. The Company has not designated any financial liability as at fair value through profit and loss.

Equity instruments

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

Financial guarantee contracts

A financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payments when due in accordance with the terms of a debt instrument.

Financial guarantee contracts issued by a Company are initially measured at their fair values and, if not designated as at FVTPL, are subsequently measured at the higher of:

the amount of loss allowance determined in accordance with impairment requirements of Ind AS 109; and
the amount initially recognised less, when appropriate, the cumulative amount of income recognised in accordance with the principles of Ind AS 18.

Derecognition of financial liabilities

The Company derecognises financial liabilities when, and only when, the Company's obligations are discharged, cancelled or have expired. An exchange with a lender of debt instruments with substantially different terms is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. Similarly, a substantial modification of the terms of an existing financial liability (whether or not attributable to the financial difficulty of the debtor) is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable is recognised in profit or loss.

Offsetting Financial Instruments

Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company or the counterparty.

Derivatives and Hedge Accounting

Derivatives are initially recognised at fair value and are subsequently re-measured to their fair value at the end of each reporting period. The resulting gains / losses is recognised in the Statement of Profit and Loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of recognition in profit or loss / inclusion in the initial cost of non-financial asset depends on the nature of the hedging relationship and the nature of the hedged item.

The Company complies with the principles of hedge accounting where derivative contracts are designated as hedge instruments. At the inception of the hedge relationship, the Company documents the relationship between the hedge instrument and the hedged item, along with the risk management objectives and its strategy for undertaking hedge transaction, which can be a fair value hedge or a cash flow hedge.

(i) Fair value hedges

Changes in fair value of the designated portion of derivatives that qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk. The change in the fair value of the designated portion of hedging instrument and the change in fair value of the hedged item attributable to the hedged risk are recognised in the Statement of Profit and Loss in the line item relating to the hedged item.

Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, or exercised, or when it no longer qualifies for hedge accounting. The fair value adjustment to the carrying amount of the hedged item arising from the hedged risk is amortised to profit or loss from that date.

(ii) Cash flow hedges

The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognised in the other comprehensive income and accumulated as 'Cash Flow Hedging Reserve'. The gains / losses relating to the ineffective portion is recognised in the Statement of Profit and Loss.

Amounts previously recognised and accumulated in other comprehensive income are reclassified to profit or loss when the hedged item affects the Statement of Profit and Loss. However, when the hedged item results in the recognition of a nonfinancial asset, such gains / losses are transferred from equity (but not as reclassification adjustment) and included in the initial measurement cost of the non-financial asset.

Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, or exercised, or when it no longer qualifies for hedge accounting. Any gains/losses recognised in other comprehensive income and accumulated in equity at that time remains in equity and is reclassified when the underlying transaction is ultimately recognised. When an underlying transaction is no longer expected to occur, the gains / losses accumulated in equity is recognised immediately in the Statement of Profit and Loss.

3.15. Cash and cash equivalent

Cash and cash equivalent in the balance sheet includes cash on hand, at banks and short-term deposits with a maturity of three months or less, which are subject to an insignificant risk of changes in value.

For the purpose of the cash flows statement, cash and cash equivalents includes cash, short-term deposits, as defined above, other short-term and highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value adjusted for outstanding bank overdrafts as they are considered an integral part of the Company's cash management. Bank Overdrafts are shown within Borrowings in current liabilities in the balance sheet.

3.16. Government Grants

Government grants are recognised where there is reasonable assurance that the grant will be received and all attached conditions will be complied with. When the grant relates to an expense item, it is recognised in Statement of Profit or Loss on a systematic basis over the periods that the related costs, for which it is intended to compensate, are expensed. When the

grant relates to an asset, it is recognised as income in equal amounts over the expected useful life of the related asset.

When the Company receives grants of non-monetary assets, the asset and the grant are recorded at fair value amounts and released to profit or loss over the expected useful life in a pattern of consumption of the benefit of the underlying asset by equal annual installments.

3.17. Taxes

Tax expense comprises of current income tax and deferred tax.

Current income 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 tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted at the reporting date. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

Current tax is recognised in the Statement of Profit and Loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively.

Deferred tax

Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.

Deferred tax liabilities are recognised for all taxable temporary differences, except:

When the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss;
In respect of taxable temporary differences associated with investments in subsidiaries and interests in joint arrangements, when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.

Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised, except:

When the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss;
In respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint arrangements, deferred tax assets are recognised only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilised.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in the Statement of Profit and Loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

The Company recognizes tax credits in the nature of MAT credit as an asset only to the extent that there is convincing evidence that the Company will pay normal income tax during the specified period, i.e., the period for which tax credit is allowed to be carried forward. In the year in which the Company recognizes tax credits as an asset, the said asset is created by way of tax credit to the Statement of profit and loss. The Company reviews such tax credit asset at each reporting date and writes down the asset to the extent the Company does not have convincing evidence that it will pay normal tax during the specified period. Deferred tax includes MAT tax credit.

3.18. Employee Benefits

(a) Short Term Employee Benefits

All employee benefits payable within twelve months of rendering the service are classified as short term benefits. Such benefits include salaries, wages, bonus, short term compensated absences, awards, ex-gratia, performance pay etc. and the same are recognised in the period in which the employee renders the related service.

(b) Post-Employment Benefits

(i) Defined contribution plan

The Company's approved provident fund scheme, superannuation fund scheme, employees' state insurance fund scheme and Employees' pension scheme are defined contribution plans. The Company has no obligation, other than the contribution paid/payable under such schemes. The contribution paid/payable under the schemes is recognised during the period in which the employee renders the related service.

(ii) Defined benefit plan:

The employee's Gratuity fund scheme, company-administered Provident fund and Compensatory Pension Scheme are Company's defined benefit plans.

Gratuity fund scheme and Compensatory Pension Scheme

The present value of the obligation under Defined benefit schemes is determined based on the actuarial valuation using the Projected Unit Credit Method as at the date of the Balance sheet. In case of funded plans, the fair value of plan asset is reduced from the gross obligation under the defined benefit plans, to recognize the obligation on the net basis.

Company Administered Provident Fund

In case of a specified class of employees of Company receive benefits from a provident fund, is a defined benefit plan. Both the eligible employee and the Company make monthly contributions to the provident fund plan equal to a specified percentage of the covered employee's salary. The Company contributes a portion to the Arvind Limited Employees' Provident Fund Trust. The trust invests in specific designated instruments as permitted by Indian law. The remaining portion is contributed to the governmentadministered pension fund. The rate at which the annual interest is payable to the beneficiaries by the trust is being administered by the government.

The Company has an obligation to make good the shortfall, if any, between the return from the investments of the Trust and the notified interest rate.

Re-measurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability and the return on plan assets (excluding amounts included in net interest on the net defined benefit liability), are recognised immediately in the Balance Sheet with a corresponding debit or credit to retained earnings through OCI in the period in which they occur. Remeasurements are not reclassified to Statement of Profit and Loss in subsequent periods.

(c) Other long term employment benefits:

The employee's long term compensated absences are Company's defined benefit plans. The present value of the obligation is determined based on the actuarial valuation using the Projected Unit Credit Method as at the date of the Balance sheet. In case of funded plans, the fair value of plan asset is reduced from the gross obligation, to recognise the obligation on the net basis.

(d) Termination Benefits :

Termination benefits such as compensation under voluntary retirement scheme are recognised in the year in which termination benefits become payable.

3.19. Share-based payments

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

Equity-settled transactions:

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

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

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

No expense is recognised for awards that do not ultimately vest because non-market performance and/or service conditions

have not been met. Where awards include a market or nonvesting condition, the transactions are treated as vested irrespective of whether the market or non-vesting condition is satisfied, provided that all other performance and/or service conditions are satisfied.

When the terms of an equity-settled award are modified, the minimum expense recognised is the expense had the terms had not been modified, if the original terms of the award are met. An additional expense is recognised for any modification that increases the total fair value of the share-based payment transaction, or is otherwise beneficial to the employee as measured at the date of modification. Where an award is cancelled by the entity or by the counterparty, any remaining element of the fair value of the award is expensed immediately through profit or loss.

The dilutive effect of outstanding options is reflected as additional share dilution in the computation of diluted earnings per share.

Cash-settled transactions:

In case of cash-settled transactions, a liability is recognised for the fair value of cash-settled transactions. The fair value is measured initially and at each reporting date up to and including the settlement date, with changes in fair value recognised in employee benefits expense. The fair value is expensed over the period until the vesting date with recognition of a corresponding liability. The fair value is determined with the assistance of an external valuer.

3.20. Earnings per share (EPS)

Basic EPS is computed by dividing the net profit / loss for the year attributable to ordinary equity holders of the Company by the weighted average number of ordinary shares outstanding during the year.

Diluted EPS is computed by dividing the net profit / loss attributable to ordinary equity holders of the Company by the weighted average number of ordinary shares outstanding during the year adjusted for the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares.

The dilutive potential equity shares are adjusted for the proceeds receivable had the equity shares been actually issued at fair value (i.e. the average market value of the outstanding equity shares). Dilutive 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. The number of equity shares and potentially dilutive equity shares are adjusted retrospectively for all periods presented for any share splits and bonus shares issues including for changes effected prior to the approval of the standalone financial statements by the Board of Directors.

3.21. Dividend

The Company recognises a liability (including tax thereon) to make cash or non-cash distributions to equity shareholders of the Company when the distribution is authorised and the distribution is no longer at the discretion of the Company.

Non-cash distributions are measured at the fair value of the assets to be distributed with fair value re-measurement recognised directly in equity.

Upon distribution of non-cash assets, any difference between the carrying amount of the liability and the carrying amount of the assets distributed is recognised in the Statement of Profit and Loss.

3.22. Provisions and Contingencies

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, and 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.

The amount recognised 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 the Company expects some or all of a provision to be reimbursed from third parties, for example, under an insurance contract, the reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably. The expense relating to a provision is presented in the statement of profit or 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 recognised as a finance cost.

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognised because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses its existence in the financial statements.

Contingent assets are not recognised but disclosed in the financial statements when an inflow of economic benefits is probable.

3.23. Non-current assets held for sale/ distribution to owners and discontinued operations

The Company classifies non-current assets (or disposal group) as held for sale if their carrying amounts will be recovered principally through a sale rather than through continuing use. Actions required to complete the sale should indicate that it is unlikely that significant changes to the sale will be made or that the decision to sell will be withdrawn. Management must be committed to the sale expected within one year from the date of classification.

The criteria for held for sale classification is regarded met only when the assets is available for immediate sale in its present condition, subject only to terms that are usual and customary for sales of such assets, its sale is highly probable; and it will genuinely be sold, not abandoned. The Company treats sale of the asset to be highly probable when:

The appropriate level of management is committed to a plan to sell the asset,
An active programme to locate a buyer and complete the plan has been initiated (if applicable),
The asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value,
The sale is expected to qualify for recognition as a completed sale within one year from the date of classification , and
Actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn.

Non-current assets held for sale are measured at the lower of their carrying amount and the fair value less costs to sell. Assets and liabilities classified as held for sale are presented separately in the balance sheet.

An impairment loss is recognised for any initial or subsequent write-down of the assets to fair value less cost to sell. A gain is recognised for any subsequent increases in the fair value less cost to sell of an assets but not in excess of the cumulative impairment loss previously recognised, A gain or loss previously not recognised by the date of sale of the non-current assets is recognised on the date of de-recognition.

Property, plant and equipment and intangible assets once classified as held for sale/ distribution to owners are not depreciated or amortised.

A discontinued operation qualifies as discontinued operation if it is a component of an entity that either has been disposed of, or is classified as held for sale, and:

Represents a separate major line of business or geographical area of operations,
Is part of a single co-ordinated plan to dispose of a separate major line of business or geographical area of operations; or
Is a subsidiary acquired exclusively with a view to resale

Discontinued operations are excluded from the results of continuing operations and are presented as a single amount as profit or loss after tax from discontinued operations in the statement of profit and loss.

3.24. Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker.

3.25. Research and Development

Research expenditure is recognised as an expense when it is incurred. Development costs are capitalised only after the technical and commercial feasibility of the asset for sale or use has been established. Thereafter, all directly attributable expenditure incurred to prepare the asset for its intended use are recognised as the cost of such assets. Internally generated brands and customer lists are not recognised as intangible assets.

4. Critical accounting estimates and assumptions

The preparation of the Company's financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

4.1. Estimates and assumption

(a) Taxes

The Company has ? 163.66 crores (March 31, 2020: ? 165.53 crores) of tax credits carried forward. These credits expire in 15 years from the date of initial recognition. The Company has taxable temporary difference and tax planning opportunities available that could partly support the recognition of these credits as deferred tax assets. On this basis, the Company has determined that it can recognise deferred tax assets on the tax credits carried forward.

Further details on taxes are disclosed in note 28.

(b) Useful life of Property, plant and equipment and Intangible Assets

Property, plant and equipment represent a significant proportion of the asset base of the Company. The depreciation charge with respect to such assets is derived based on the estimated useful life of the asset and its residual value. The useful life and residual value of an asset is reviewed at the end of each reporting period.

(c) Provisions and contingencies

be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Where the effect of time value of money is material, provisions are determined by discounting the expected future cash flows.

The Company has significant capital commitments in relation to various capital projects which are not recognized on the balance sheet. In the normal course of business, contingent liabilities may arise from litigation and other claims against the Company. Guarantees are also provided in the normal course of business. There are certain obligations which management has concluded, based on all available facts and circumstances, are not probable of payment or are very difficult to quantify reliably, and such obligations are treated as contingent liabilities and disclosed in the notes but are not reflected as liabilities in the financial statements. Although there can be no assurance regarding the final outcome of the legal proceedings in which the Company

involved, it is not expected that such contingencies will have a material effect on its financial position or profitability (Refer note 15 and 30).

(d) Defined benefit plans

The determination of Company's liability towards defined benefit obligation to employees is made through independent actuarial valuation including determination of amounts to be recognised in the Statement of Profit and Loss and in other comprehensive income. Such valuation depend upon assumptions determined after taking into account inflation, seniority, promotion and other relevant factors such as supply and demand factors in the employment market. Information about such valuation is provided in notes to the financial statements.

Further details about defined benefit obligations are provided in note 34.

Note 5 : Property, plant and equipment

` in Crores

Particulars	Freehold land	Leasehold land	Building	Plant & Machinery	Furniture & fixture	Vehicles	Leasehold Improve ments	Office Equipment	Computer, server & network	Total
Gross Carrying Amount
As at April 1, 2019	1,131.87	182.66	534.79	1,599.81	74.91	45.99	33.38	29.98	41.60	3,674.99
Additions	25.72	-	44.42	339.84	8.26	7.78	0.40	3.96	3.75	434.13
Transfer from Investment Properties	-	-	7.55	-	-	-	-	-	-	7.55
Transfer to Stock In Trade (refer note 6 below)	21.26	-	-	-	-	-	-	-	-	21.26
Deductions	-	-	-	18.38	1.24	5.67	2.61	0.12	0.05	28.07
As at April 1, 2020	1,136.33	182.66	586.76	1,921.27	81.93	48.10	31.17	33.82	45.30	4,067.34
Additions	7.57	-	1.36	55.83	0.96	4.34	-	0.80	2.40	73.26
Transfer from Investment Properties	-	-	5.69	-	-	-	-	-	-	5.69
Transfer to Stock In Trade (refer note 6 below)	8.06	-	-	-	-	-	-	-	-	8.06
Deductions	-	-	1.12	13.18	0.84	7.37	0.23	0.05	0.01	22.80
As at March 31, 2021	1,135.84	182.66	592.69	1,963.92	82.05	45.07	30.94	34.57	47.69	4,115.43
Accumulated Depreciation and Impairment
As at April 1, 2019	-	-	85.52	462.94	25.06	13.06	20.14	17.91	23.05	647.68
Depreciation for the year	-	-	24.17	118.32	7.66	5.69	4.72	4.57	6.18	171.31
Transfer from Investment Properties	-	-	0.96	-	-	-	-	-	-	0.96
Deductions	-	-	-	5.51	0.49	1.99	1.47	0.06	0.05	9.57
As at April 1, 2020	-	-	110.65	575.75	32.23	16.76	23.39	22.42	29.18	810.38
Depreciation for the year	-	-	25.38	127.55	7.43	5.48	3.34	3.73	5.48	178.39
Transfer from Investment Properties	-	-	0.92	-	-	-	-	-	-	0.92
Deductions	-	-	0.17	3.90	0.50	3.15	0.14	0.03	0.01	7.90
As at March 31, 2021	-	-	136.78	699.40	39.16	19.09	26.59	26.12	34.65	981.79
Net Carrying Amount
As at March 31, 2021	1,135.84	182.66	455.91	1,264.52	42.89	25.98	4.35	8.45	13.04	3,133.64
As at April 1, 2020	1,136.33	182.66	476.11	1,345.52	49.70	31.34	7.78	11.40	16.12	3,256.96

Notes :

Freehold Land amounting to 51.67 crores in respect of which registration are pending in the favour of the Company and Land amounting to 21.27 crores in respect of which title deeds are in the name of merged companies. For Capital Work-in Progress, the Company is in process to execute deeds of 47.71 crores for land. `
Buildings includes 1.91 crores (Previous year 2.45 crores) in respect of ownership flats in Co-Operative Housing Society and 500/- (Previous year 500/-) in respect of shares held in Co-Operative Housing Society.
Details of Borrowing Cost and Exchange Differences Capitalised:

	2020-21	2019-20	2020-21	2019-20
Borrowing Cost	0.37	1.63	0.35	0.59
Exchange Differences	-	-	-	-
Total	0.37	1.63	0.35	0.59

Additions in Plant and Machinery includes Nil Crores ( Previous Year 3.99 Crores ) which are purchased for the Research and Development purpose. For details refer note 46.
For Properties pledged as security, refer note 14 (a).
During the year , Freehold Land of 8.06 Crores (Previous Year 21.26 Crores) is transferred to Stock In Trade.

Note 6 : Investment properties

Particulars
Gross Carrying Amount
As at April 1, 2019	21.44	16.01	37.45
Additions	-	7.12	7.12
Transfer to Property, plant and equipment	-	7.55	7.55
As at April 1, 2020	21.44	15.58	37.02
Transfer to Property, plant and equipment	-	5.69	5.69
As at March 31, 2021	21.44	9.89	31.33
Accumulated Depreciation
As at April 1, 2019	-	1.80	1.80
Depreciation for the year	-	0.37	0.37
Transfer to Property, plant and equipment	-	0.96	0.96
As at April 1, 2020	-	1.21	1.21
Depreciation for the year	-	0.51	0.51
Transfer to Property, plant and equipment	-	0.92	0.92
As at March 31, 2021	-	0.80	0.80
Net Carrying Amount
As at March 31, 2021	21.44	9.09	30.53
As at April 1, 2020	21.44	14.37	35.81

Notes :

(1) Buildings of investment property includes ` 9.05 crores in respect of which registration are pending in the favour of the Company.

(2) Information regarding income and expenditure of Investment property

Particulars	Year ended	Year ended
	March 31, 2021	March 31, 2020
Rental income derived from Investment properties	3.45	4.35
Less: Direct operating expenses (including repairs and maintenance)	0.02	0.01
Profit arising from investment properties before depreciation	3.43	4.34
Less : Depreciation	0.51	0.37
Profit arising from investment properties	2.92	3.97

(3) Fair value of the Investment properties

Fair value of the Investment properties are as under

Fair value
Balance as at April 1, 2020	27.98	19.22	47.20
Asset transfer to to Property, plant and equipment	-	6.65	6.65
Balance as at March 31, 2021	27.98	12.57	40.55

The fair value of the properties are based on internal evaluation by the management.

` in Crores

Note 7 : Intangible assets

Particulars	Computer Software	Patent & Technical Know How	Website (Refer note (i))	Total
Gross Carrying Amount
As at April 1, 2019	94.98	24.80	71.36	191.14
Additions	3.94	1.11	-	5.05
As at March 31, 2020	98.92	25.91	71.36	196.19
Additions	1.67	-	-	1.67
Deductions	0.25	-	-	0.25
As at March 31, 2021	100.34	25.91	71.36	197.61
Accumulated Depreciation
As at April 1, 2019	34.47	15.14	32.18	81.79
Amortisation for the year	16.40	4.86	14.86	36.12
As at March 31, 2020	50.87	20.00	47.04	117.91
Amortisation for the year	15.71	4.95	14.86	35.52
As at March 31, 2021	66.58	24.95	61.90	153.43
Net Carrying Amount
As at March 31, 2021	33.76	0.96	9.46	44.18
As at April 1, 2020	48.05	5.91	24.32	78.28

Note : (i) Website consist of development cost capitalised being an internally generated intangible asset.

123

` in Crores Note 8 : Financial assets Notes to the Standalone Financial Statement

8 (a) Investments

	Particulars	Face Value		No. of Shares/unit		Amount
		per Share	As at	As at	As at	As at
		(in unless `	March	March	March	March
		otherwise	31, 2021	31, 2020	31, 2021	31, 2020
		stated)

	(a) Investment in equity shares (fully paid up):
I.	Subsidiaries - measured at cost (unquoted) :
	Syntel Telecom Limited	10	50,000	50,000	0.05	0.05
	Arvind Envisol Limited (Formerly known as 'Arvind Accel Limited')*	10	2,10,000	2,10,000	10.99	10.04
	Arvind Worldwide Inc., Delaware (Shares without par value)		502	502	0.08	0.08
	Arvind Worldwide(M) Inc., Mauritius	100 USD	54,840	54,840	0.01	0.01
	Less: Provision for Impairment				(0.01)	(0.01)
					-	-
	Arvind Spinning Limited (Shares without par value)		8,24,099	8,24,099	0.08	0.08
	Less: Provision for Impairment				(0.08)	(0.08)
					-	-
	Arvind Overseas (M) Inc., Mauritius	100 Mau	23,85,171	23,85,171	0.24	0.24
	Less: Provision for Impairment				(0.24)	(0.24)
					-	-
	Arvind Textile Mills Limited	10 Taka	-	64,73,200	-	9.27
	Less: Provision for Impairment (Refer note 27)				-	(9.27)
					-	-
	Arvind Lifestyle Apparel Manufacturing Plc	1,000 ETB	9,60,772	9,60,772	260.07	260.07
	Arvind Envisol Plc	1,000 ETB	46	46	0.01	0.01
	Arvind Foundation	10	10,000	10,000	0.01	0.01
	Arvind Internet Limited	10	3,30,55,600	3,30,55,600	33.48	33.48
	Arvind Sports Fashion Private Limited (Formerly known as
	'Arvind Ruf and Tuf Limited')	10	9,50,000	9,50,000	14.11	14.11
	Less: Provision for Impairment (Refer note 27)				(9.76)	(9.76)
					4.35	4.35
	Arvind True Blue Limited	10	-	10,000	-	0.01
	Arvind Premium Retail Limited	10	10,409	10,409	0.01	2.33
	(Incluing Equity Component of Preference Shares ` 2.32 crores)
	Less: Provision for Impairment (Refer note 27)				(0.01)	(2.33)
					-	-
	Arvind BKP Berolina Private Limited (Formerly known as
	'Arvind Transformational Solutions Private Limited')	10	10,000	10,000	0.01	0.01
	Arvind Smart Textiles Limited	10	12,35,000	1,10,000	50.81	5.81
	Arvind Goodhill Suit Manufacturing Private Limited	10	-	5,45,700	-	26.79
	Arvind OG Nonwovens Private Limited	10	26,80,710	23,14,710	26.71	23.05
	Arvind PD Composites Private Limited	10	1,60,451	1,60,451	15.04	15.04
	Arvind Polser Engineered Composite Panels Private Limited	10	2,88,897	2,88,897	6.98	6.98
	Arya Omnitalk Wireless Solutions Private Limited*	10	10,02,500	10,02,500	1.36	1.35
	Arvind Niloy Exports Private Limited	100 Taka	1,61,265	1,61,265	1.24	1.24
	Less: Provision for Impairment (Refer note 27)				(1.24)	(1.24)
					-	-
	Westech Advanced Materials Limited (Shares without par value)		28,28,363	28,28,363	18.13	18.13
	Arvind Enterprise FZC	1000 AED	183	183	0.32	0.32
		Total (I)			428.40	405.58
II.	Joint Ventures - measured at cost (unquoted) :
	Arya Omnitalk Radio Trunking Services Private Limited*	10	10,05,000	10,05,000	6.06	6.06
	Adient Arvind Automotive Fabrics India Private Limited	10	81,42,750	81,42,750	8.14	8.14
	Less: Provision for Impairment (Refer note 27)				(5.00)	(5.00)
					3.14	3.14
	PVH Arvind Manufacturing PLC	1,000 ETB	18,177	18,177	5.33	5.33
	Less: Provision for Impairment (Refer note 27)				(5.33)	(5.33)
					-	-
	Arvind Norm CBRN Systems Pvt. Ltd.	10	5,000	5,000	0.01	0.01
	Arudrama Development Private Limited	100	50,000	50,000	2.05	2.05
		Total (II)			11.26	11.26

Notes to the Standalone Financial Statement

Note 8 : Financial assets

8 (a) Investments (Contd.)

	Particulars Face Value		No. of Shares/unit		Amount
	per Share	As at	As at	As at	As at
	(in unless `	March	March	March	March
	otherwise	31, 2021	31, 2020	31, 2021	31, 2020
III.	stated) Limited Liability Partnerships:
	(a) Subsidiaries - measured at cost (unquoted)
	Enkay Converged Technologies LLP			0.02	0.02
	Maruti and Ornet Infrabuild LLP			26.77	26.77
	(b) Joint ventures - measured at cost (unquoted)
	Arvind and Smart Value Homes LLP			63.40	63.72
	Total (III)			90.19	90.51
IV.	Others - Fair value through Other Comprehensive Income:
(i)	Unquoted
	Amazon Textile Private Limited** 10	1,18,000	1,18,000	0.01	0.01
	Abeer Textiles Private Limited** 10	22,42,000	22,42,000	2.09	2.09
	Ahmedabad Cotton Merchants' Co-operative Shops and
	Warehouses Society Limited** 250	140	140	(`35,000/-) \| ( 35,000/-)<br>`
	Gujarat Cloth Dealers Co-operative Shops and
	Warehouses Society Limited** 100	10	10	(`1,000/-) \| ( 1,000/-)<br>`
	Total (IV)			2.10	2.10
	Total Equity Investments ((I) + (II) + (III) + (IV)) Total (a)			531.95	509.45

	(b) Investments in Preference Shares of Subsidiaries -
	measured at amortised cost (Fully Paid up): Unquoted
	9% Redeemable Non- Cumulative - Arvind Premium Retail Limited 10	-	60,000	-	4.94
	Less: Provision for Impairment (Refer note 27)			-	(4.94)
				-	-
	0.001% Compulsory Convertible
	Non-Cumulative - Arvind True Blue Limited 10	-	1,60,00,000	-	16.00
	Total (b)			-	16.00
	(c) Investment in debentures - measured at amortised
	cost (Unquoted):
	9% Optionally Convertible Debentures of Arya Omnitalk
	Radio Trunking Services Private Limited 10	2,500	2,500	0.02	0.02
	Total (c)			0.02	0.02
	(d) Investment in government securities - measured at amortised cost:
	National Saving Certificates			(`23,000/-) \| ( 23,000/-)<br>`
	(Lodged with Sales Tax and Government Authorities)
	Total (d)			-	-
	Total Investments (a)+(b)+(c)+(d)			531.97	525.47
	Aggregate amount of quoted investments			-	-
	Aggregate amount of unquoted investments			531.97	525.47
	Aggregate impairment in value of investment			21.67	38.20

` in Crores

Note 8 : Financial assets

8 (a) Investments (Contd.)

Disclosure in respect of Partnership Firms

Name of the Firm	Name of the Partner	Share in		Capital as at
		partnership	March 31, 2021	March 31, 2020
Arvind and Smart Value Homes LLP	Arvind Limited	50%	63.40	63.72
	Tata Value Homes Limited	50%	63.40	63.48
Enkay Converged Technologies LLP	Arvind Limited	1%	0.02	0.02
	Syntel Telecom Limited	99%	1.48	1.48
Maruti and Ornet Infrabuild LLP	Arvind Limited	99%	26.77	26.78
	Arvind Internet Limited	1%	11.50	11.50

* Increase in the cost of investment during the period includes recognition of notional commission on fair valuation of financial guarantee provided for loan taken by direct and indirect subsidiaries. The same is detailed below :

Subsidiaries / Joint ventures	Nature of transaction	fair valuation of financial guarantee	Impact of notional commission on
		2020-21	2019-20
Arya Omnitalk Wireless Solutions Private Limited	Financial guarantee given	0.01	-
Arvind Envisol Limited	Financial guarantee given	0.95	0.76

** The management has assessed that carrying value of the investments approximate to their fair value.

8 (b) Trade receivables ~ Current

Particulars	As at	As at
	March 31, 2021	March 31, 2020
Unsecured, considered good	933.68	898.32
Unsecured, considered doubtful	-	-
Less : Allowance for doubtful debts	-	-
Total Trade receivables	933.68	898.32
Receivables from Directors or from firm / Private company where director is interested
(Refer note 35 for further details)	3.18	6.33
Trade receivables are non-interest bearing and are generally on terms of 7 to 180 days.

Trade Receivables are given as security for borrowings as disclosed under note 14(a).

Allowance for doubtful debts

The Company has provided allowance for doubtful debts based on the lifetime expected credit loss model using provision matrix. Movement in allowance for doubtful debt are as follows:

Particulars	Year ended	Year ended
	March 31, 2021	March 31, 2020
Balance as per last financial statements	-	0.23
Less : Write off of bad debts and other adjustment (net of recovery)	-	(0.23)
Balance at the end of the year	-	-

8 (c) Loans Note 8 : Financial assets

Particulars	As at	As at
	March 31, 2021	March 31, 2020
Unsecured, considered good unless otherwise stated
Non-current
Loans to employees	0.68	0.94
Total Non-current Loans (A)	0.68	0.94
Current
Loans to
- Related parties (Refer note 35)	234.98	282.24
- Employees	0.23	0.44
- Others	22.47	22.47
	257.68	305.15
Considered Doubtful
Loans to related parties (Refer note 35)	15.96	14.85
Less : Allowance for doubtful loan	(15.96)	(14.85)
	-	-
Total Current Loans (B)	257.68	305.15
Total (A) + (B)	258.36	306.09
Loans to Directors or to firm / Private company where director is interested
(Refer note 35 for further details)	-	-

8 (d) Cash and cash equivalents

Particulars	As at March 31, 2021	As at March 31, 2020
Cash on hand	0.01	0.01
Cheques on hand	-	3.77
Balance with Banks
In Current accounts and debit balance in cash credit accounts	9.79	16.69
In Exchange Earners Foreign Currency account	-	0.14
Total cash and cash equivalents	9.80	20.61

8 (e) Other bank balance

Particulars	As at	As at
	March 31, 2021	March 31, 2020
Unpaid dividend accounts	3.46	3.92
Deposits held as Margin Money*	5.99	5.59
Total other bank balances	9.45	9.51

* Under lien with bank as Security for Guarantee given by the bankers

Note 8 : Financial assets

8 (f) Other financial assets

` in Crores
Particulars	As at	As at
	March 31, 2021	March 31, 2020
Unsecured, considered good unless otherwise stated
Non-current
Security deposits	22.99	26.31
Bank deposits with maturity of more than 12 months	1.30	0.08
Foreign exchange forward contracts (Cash flow hedge)	0.12	-
Share Application Money	51.49	5.15
Less : Allowance for doubtful share application money	(1.49)	(1.49)
	50.00	3.66
Total Other Non-current Financial Asset (A)	74.41	30.05
Current
Interest Subsidy Receivable	22.84	32.84
Receivable other than trade	18.75	26.00
Security deposits	4.32	3.56
Interest Accrued on financial assets measured at amortised cost	20.09	21.48
Foreign exchange forward contracts (Cash flow hedge)	23.64	0.03
Income receivable	2.35	3.46
Total Other Current Financial Asset (B)	91.99	87.37
Total (A) + (B)	166.40	117.42

Other current financial assets are given as security for borrowings as disclosed under note 14(a).

Note 9 : Other assets

Particulars	As at March 31, 2021	As at March 31, 2020
Non-current
Capital advances	30.75	8.35
Pre-paid expense	0.25	0.38
Other than Capital Advances
Advances to suppliers, Doubtful	0.30	0.05
Less : Provision for doubtful advances	(0.30)	(0.05)
	-	-
Total Other Non-current Other Asset (A)	31.00	8.73
Current
Advance to suppliers
To Related Parties	9.10	6.21
To Others	74.48	40.93
Balance with Government Authorities (Refer note (i) below)	111.07	112.16
Export incentive receivable	19.49	72.96
Pre-paid expense	12.50	14.38
Pre-paid Gratuity (Refer note 34)	6.49	-
Other Advances	0.99	1.89
Total Other Current Asset (B)	234.12	248.53
Total (A) + (B)	265.12	257.26
Advance to Directors or to firm / Private company where director is interested
(Refer note 35 for further details)	0.10	2.17
(i) Balance with Government Authorities mainly consists of input credit availed.

Other current assets are given as security for borrowings as disclosed under note 14(a).

Note 10 : Inventories (At lower of cost and net realisable value)

Particulars	As at March 31, 2021	As at March 31, 2020
Raw materials and components	322.87	227.95
Fuel	3.26	2.31
Land plots and materials at site	55.18	31.59
Stores and spares	45.06	49.53
Work-in-progress	297.78	378.62
Finished goods	249.30	320.12
Waste	2.27	2.89
Stock-in-trade	22.98	25.45
Total	998.70	1,038.46

Inventory write downs are accounted, considering the nature of inventory, ageing and net realisable value for 31.97 Crores (March 31, 2020 39.69 Crores). The changes in write downs are recognised as an expense in the Statement of Profit and Loss. Inventories are hypothecated as security for borrowings as disclosed under note 14(a).

Note 11 : Current Tax Assets (Net)

Particulars	As at	As at
	March 31, 2021	March 31, 2020
Tax Paid in Advance (Net of Provision)	12.28	19.58
Total	12.28	19.58

Note 12 : Equity share capital:

Particulars	As at March 31, 2021		As at March 31, 2020
	No. of shares	in Crores `\| No. of shares \| in Crores<br>`
Authorised share capital
Equity shares of 10 each `	57,45,00,000	574.50	57,45,00,000	574.50
Preference shares of 100 each `	1,00,00,000	100.00	1,00,00,000	100.00
Issued, subscribed and paid-up share capital
Equity shares of 10 each `	25,89,24,069	258.92	25,87,67,069	258.77
Add : Forfeited shares	900	(`4,500/-) \| 900 \| ( 4,500/-)<br>`
Total	25,89,24,969	258.92	25,87,67,969	258.77

(i) Reconciliation of equity shares outstanding at the beginning and at the end of the year:

Particulars	As at March 31, 2021			As at March 31, 2020
	No. of shares	in Crores `\| No. of shares \| in Crores<br>`
Outstanding at the beginning of the year Add : Shares allotted pursuant to exercise of	25,87,67,069	258.77	25,86,17,069	258.62
Employee Stock Option Scheme	1,57,000	0.15	1,50,000	0.15
Outstanding at the end of the year	25,89,24,069	258.92	25,87,67,069	258.77

(ii) Rights, Preferences and Restrictions attached to equity shares:

The Company has one class of shares having par value of ` 10 per share. Each shareholder is eligible for one vote per share held. The final dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

2020 - 2021

Note 12 : Equity share capital: (Contd.)

(iii) Details of shareholder holding more than 5% Shares in the Company:

Name of the Shareholder	As at March 31, 2021		As at March 31, 2020
	No. of shares	% of shareholding	No. of shares	% of shareholding
Aura Securities Private Limited	9,55,61,810	36.91	9,55,61,810	36.93

(iv) Shares reserved for issue under options and contracts:

Refer note 37 for details of shares to be issued under employee stock option Scheme (ESOS 2008).

(v) In the period of five years immediately preceding March 31, 2021:

i) The Company has not allotted any equity shares as fully paid up without payment being received in cash.

ii) The Company has not allotted any equity shares by way of bonus issue.
iii) The Company has not bought back any equity shares.

Note 13 : Other Equity

	Particulars		As at
		March 31, 2021	March 31, 2020
(a)	Capital reserve
	Balance as per last financial statements	26.71	26.71
	Less: Loss on Sale of Investment	(56.01)	-
	Balance at the end of the year	(29.30)	26.71
(b)	General reserve
	Balance as per last financial statements	35.65	35.65
	Add: Transfer from Debenture redemption reserve	50.00	-
	Balance at the end of the year	85.65	35.65
(c)	Amalgamation reserve
	Balance as per last financial statements	34.20	34.20
	Balance at the end of the year	34.20	34.20
(d)	Securities premium account
	Balance as per last financial statements	562.01	564.77
	Add: Received during the year	-	0.71
	Add: Transfer from share based payment reserve	1.02	1.72
	Less: Utilized during the year	-	(5.19)
	Balance at the end of the year	563.03	562.01
(e)	Capital redemption reserve
	Balance as per last financial statements	69.50	69.50
	Balance at the end of the year	69.50	69.50
(f)	Debenture redemption reserve
	Balance as per last financial statements	50.00	50.00
	Less: Transfer to General reserve	(50.00)	-
	Balance at the end of the year	-	50.00
(g)	Share based payment reserve (Refer note 37)
	Balance as per last financial statements	11.78	12.37
	Add: Addition during the year	1.13	1.13
	Less: Transfer to Securities Premium Account	(1.02)	(1.72)
	Balance at the end of the year	11.89	11.78

` in Crores

Note 13 : Other Equity (Contd.) ` in Crores

	Particulars	As at	As at
		March 31, 2021	March 31, 2020
(h)	Retained earnings
	Balance as per last financial statements	1,831.11	1,740.03
	Add: Profit for the year	92.67	171.38
	Add: Other comprehensive income/(loss) arising from remeasurement of
	defined benefit obligation (net of tax)	14.49	0.39
	Less: Ind AS 116 transition Adjustment ( Refer note 38)	-	(29.00)
	Add : Deferred Tax on Ind AS 116 transition Adjustment ( Refer note 38)		10.13
			1,892.93
	Less: Payment of dividend on equity shares	-	(51.75)
	Less: Dividend distribution tax on dividend	-	(10.07)
	Balance at the end of the year	1,938.27	1,831.11
	Items of Other comprehensive income
	(i) Equity Instruments through OCI (net of tax)
	Balance as per last financial statements	0.49	0.49
	Balance at the end of the year	0.49	0.49
	(ii) Cash Flow hedge reserve
	Balance as per last financial statements	(26.53)	23.78
	Add/(Less): Addition during the year	53.62	(77.34)
	Add/(Less): Tax impact on additions	(18.74)	27.03
	Balance at the end of the year	8.35	(26.53)
	Total Other equity	2,682.08	2,594.92

The description of the nature and purpose of each reserve within equity is as follows

a. Capital reserve

Capital Reserve includes forfeiture of application money received on issue of share warrants and Capital Reserves on amalgamation/Business Combinations.

During the year, the Company has sold its investment in equity shares and compulsory convertible non cumulative preference shares of its subsidiary Arvind True Blue Limited, to its another subsidiary Arvind Sports Fashion Private Limited (formerly known as Arvind Ruf and Tuf Private Limited), for a consideration of 25.00 crores. Resulting loss of 56.01 crores on such sale is accounted for in "Capital Reserve", this being in the nature of common control business combination.

b. General reserve

General Reserve is a free reserve created by the Company by transfer from Retained earnings for appropriation purposes.

c. Amalgamation reserve

The reserve was created pursuant to scheme of amalgamation in earlier years. Amalgamation Reserve is a reserve which arose pursuant to the scheme of amalgamation and shall not be considered to be a reserve created by the Company.

d. Securities premium account

Securities premium reserve is created due to premium on issue of shares. These reserve is utilised in accordance with the provisions of the Companies Act.

e. Capital redemption reserve

Capital Redemption Reserve is created for redemption of preference shares from its retained earnings. The amount in Capital Redemption Reserve is equal to nominal amount of the preference shares redeemed. Capital Redemption Reserve may be applied by the Company in paying up unissued shares of the Company to be issued to shareholders of the Company as fully paid bonus shares.

f. Debenture redemption reserve

The reserve represents amount required to be set aside out of profits in accordance with Companies Act, 2013 up to 2019-20.

g. Share based payment reserve

This reserve relates to share options granted by the Company to its employee stock option scheme. Further information about share-based payments to employees is set out in note 37.

` in Crores Note 13 : Other Equity (C0ntd.) Notes to the Standalone Financial Statement

h. Equity instruments through OCI

The Company has elected to recognise changes in the fair value of certain investment in equity instrument in other comprehensive income. This amount will be reclassified to retained earnings on derecognition of equity instrument.

i. Cash flow hedge reserve

The cash flow hedge reserve represents the cumulative effective portion of gains or losses arising on changes in fair value of designated portion of hedging instruments entered into for cash flow hedges. The cumulative gain or loss arising on the changes of the fair value of the designated portion of the hedging instruments that are recognised and accumulated under the cash flow hedge reserve will be reclassified to profit or loss only when the hedged transaction affects the profit or loss, or included as a basis adjustment to the non-financial hedged item.

Note 14 : Financial liabilities

14 (a) Long-term Borrowings

	Particulars		As at
		March 31, 2021	March 31, 2020
A.	Non-current portion
	(Secured)(at amortised cost)
	(ai) Term loan
	- from Banks	852.71	853.46
	- from others	174.34	-
	(aii) Non-convertible Debentures	73.32	-
	(Unsecured)(at amortised cost)
	(aiii) Non-convertible Debentures	-	99.75
		1,100.37	953.21
B.	Current maturities (Refer note I below)
	(Secured)(at amortised cost)
	(bi) Term loan
	- from Banks	212.85	145.14
	(Unsecured)(at amortised cost)
	(bii) Non convertible Debentures	-	100.00
		212.85	247.64
	Total long-term borrowings (i)	1,313.22	1,200.85
C.	Short-term Borrowings
	(Secured)(at amortised cost)
	(ci) Working Capital Loans repayable on demand from Banks	600.56	1,111.83
	Total short-term borrowings (ii)	600.56	1,111.83
	Total borrowings (i + ii)	1,913.78	2,312.68

Notes :

Installments falling due within a year in respect of all the above Loans aggregating 212.85 crore (March 31, 2020 : 247.64 crore) have been grouped under "Current maturities of long-term debt" (Refer note 14(c)). I)

II) Nature of security:

Term loan of 1239.90 Crores and NCD of 73.32 Crores

Loans amounting to NIL Crores (March 31, 2020 956.52 Crores) are secured by (a) first pari passu charge on all the Immovable Properties, Movable Properties, Intangible Properties and General Assets of the Company presently relating to the Textile Plants and Garment Division at Bangalore; and all Immovable Properties, Movable Properties, Intangible Properties and General Assets acquired by the Company at any time after execution of and during the continuance of the Indenture of Mortgage; (b) charge on the Company's Trademarks; (c) Secured by second pari passu charge on all the Company's Current Assets presently relating to the Textile Plants and Garment Division and all the current assets aquired by the Company at any time in future .

Loans and NCD amounting to 549.33 Crores (March 31, 2020 NIL Crores) are secured by (a) first pari passu charge on all the Immovable Properties, Movable Properties, Intangible Properties and General Assets of the Company presently relating to the Textile Plants

` in Crores

Note 14 : Financial liabilities

14 (a) Long-term Borrowings (Contd.)

and Garment Division at Bangalore; and all Immovable Properties, Movable Properties, Intangible Properties and General Assets acquired by the Company at any time after execution of and during the continuance of the Indenture of Mortgage; (b) Secured by second pari passu charge on all the Company's Current Assets presently relating to the Textile Plants and Garment Division and all the current assets aquired by the Company at any time in future .

Loans amounting to 218.22 Crores (March 31, 2020 NIL Crores) are secured by (a) first pari passu charge on all the Immovable Properties, Movable Properties, Intangible Properties and General Assets of the Company presently relating to the Textile Plants and Garment Division at Bangalore; and all Immovable Properties, Movable Properties, Intangible Properties and General Assets acquired by the Company at any time after execution of and during the continuance of the Indenture of Mortgage; (b) Pledge of shares of Arvind Envisol Limited, wholly own subsidiary of the company ; (c) Secured by second pari passu charge on all the Company's Current Assets presently relating to the Textile Plants and Garment Division and all the current assets aquired by the Company at any time in future .

Loans amounting to 99.08 Crores (March 31, 2020 ? NIL Crores) are secured by (a) exclusive charge on some of the Immovable properties at Dholka; (b) first pari passu charge on all the Immovable Properties, Movable Properties, Intangible Properties and General Assets of the Company presently relating to the Textile Plants and Garment Division at Bangalore; and all Immovable Properties, Movable Properties, Intangible Properties and General Assets acquired by the Company at any time after execution of and during the continuance of the Indenture of Mortgage; (c) Secured by second pari passu charge on all the Company's Current Assets presently relating to the Textile Plants and Garment Division and all the current assets aquired by the Company at any time in future . Process for creation of securities mentioned in (b) and (c) for these loans has been initiated. `

Loans amounting to 197.10 Crores (March 31, 2020 NIL Crores) are secured by (a) exclusive charge on Immovable properties of Ankur division; (b) first pari passu charge on all the Immovable Properties, Movable Properties, Intangible Properties and General Assets of the Company presently relating to the Textile Plants and Garment Division at Bangalore; and all Immovable Properties, Movable Properties, Intangible Properties and General Assets acquired by the Company at any time after execution of and during the continuance of the Indenture of Mortgage; (c) Secured by second pari passu charge on all the Company's Current Assets presently relating to the Textile Plants and Garment Division and all the current assets aquired by the Company at any time in future .

Loans amounting to 174.34 Crores (March 31, 2020 NIL Crores) are secured by (a) exclusive charge on some of the Immovable properties at Asarwa; (b) first pari passu charge on all the Immovable Properties, Movable Properties, Intangible Properties and General Assets of the Company presently relating to the Textile Plants and Garment Division at Bangalore; and all Immovable Properties, Movable Properties, Intangible Properties and General Assets acquired by the Company at any time after execution of and during the continuance of the Indenture of Mortgage. Process for creation of securities mentioned in (b) for these loans has been initiated.

Loans amounting to 74.93 Crores (March 31, 2020: NIL Crores) are secured by (a) first pari passu charge on all the Movable Properties, Intangible Properties and General Assets of the Company presently relating to the Textile Plants and Garment Division at Bangalore; and all Immovable Properties, Movable Properties, Intangible Properties and General Assets acquired by the Company at any time after execution of and during the continuance of the Indenture of Mortgage; (b) Secured by second pari passu charge on all the Company's Current Assets presently relating to the Textile Plants and Garment Division and all the current assets aquired by the Company at any time in future . Process for creation of securities for these loans has been initiated.

Process of creation of securities for Loans amounting to NIL crores (March 31,2020: 40.00 crores) have been initiated.

Loans of 0.22 Crores (March 31, 2020 4.58 Crores) are secured by hypothecation of related vehicles.

Rate of Interest and Terms of Repayment

Particulars		in Crores `	Range of Interest (%)	Terms of Repayment from Balance sheet date
	From Banks
(a)	Term Loan
	(I) Secured Rupee Loans	1,065.34	2.10% to 8.62%	Repayable in quarterly instalments ranging between 4 to 23.
	(II) Secured Vehicle Loan	0.22	8.45% to 8.85%	Monthly payment of Equated Monthly Instalments beginning from the month subsequent to taking the loans.
(b)	Non-Convertible Debentures	73.32	8.50%	Repayable in June 2023.
From Others
	Secured Rupee Loans	174.34	8.85%	Repayable in 14 quarterly instalments.

Note 14 : Financial liabilities

14 (a) Long-term Borrowings (Contd.)

Nature of Security

Cash Credit and Other Facilities from Banks

(a) Secured by first pari passu charge on all the Company's Current Assets presently relating to the Manufacturing Locations and all the Current Assets acquired by the Company at any time after the execution of and during the continuance of the Indenture of Mortgage.
(b) Secured by a second pari passu charge over all the Immovable Properties relating to Textile Plants, Movable Properties presently relating to the Company and all the movable properties aquired by the Company at any time in future after execution of and during the continuance of the Indenture of Mortgage.

Rate of Interest

i. Working Capital Loans from banks carry interest rates ranging from 3.00% to 9.50% per annum.
ii. Inter Corporate Deposit carries interest rate of 8.75% per annum.

14 (b) Trade payables

Particulars	As at March 31, 2021	As at March 31, 2020
Current Acceptances Other trade payables (Refer note below)	134.83	118.90
- Total Outstanding dues of Micro Enterprises and Small Enterprises	38.22	8.93
- Total Outstanding dues other then Micro Enterprises and Small Enterprises	1,149.35	990.48
Total	1,322.40	1,118.31

Note

(i) Information required to be furnished as per Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) and Schedule III of the Companies Act, 2013 for the year ended March 31, 2021. This information has been determined to the extent such parties have been identified on the basis of information available with the Company and relied upon by auditors.

Particulars		As at	As at
		March 31, 2021	March 31, 2020
(i)	Principal amount and the interest due thereon remaining unpaid to each supplier at the end of each accounting year (but within due date as per the MSMED Act) - Principal amount due to micro and small enterprise - Interest due on above	38.22 -	8.93 -
(ii) (iii)	Interest paid by the Company in terms of Section 16 of the Micro, Small and Medium Enterprises Development Act, 2006, along-with the amount of the payment made to the supplier beyond the appointed day during the period Interest due and payable for the period of delay in making payment (which have been paid but	-	-
(iv)	beyond the appointed day during the period) but without adding interest specified under the Micro, Small and Medium Enterprises Act, 2006 The amount of interest accrued and remaining unpaid at the end of each accounting year	- -	- -
(v)	Interest remaining due and payable even in the succeeding years, until such date when the interest dues as above are actually paid to the small enterprises	-	-

(ii) For amount payable to related parties, refer note 35.

Note 14 : Financial liabilities

14 (c) Other financial liabilities

Particulars	As at	As at
	March 31, 2021	March 31, 2020
Non-current
Financial guarantee contract	1.15	1.34
Mark to market of derivative financial instruments	8.22	5.01
Total Other Non-current financial liabilities (A)	9.37	6.35
Current
Current maturity of long term borrowings (Refer note 14 (a))	212.85	247.64
Interest accrued but not due
- On Borrowings	6.79	19.11
- On Others	0.53	0.03
Interest accrued and due	1.63	-
Payable to employees	87.65	82.19
Deposits from customers and others	6.47	6.38
Financial guarantee contract	0.19	0.17
Mark to market of derivative financial instruments	3.82	47.20
Unpaid dividends	3.46	3.92
Book overdraft	1.30	1.40
Payable for Capital Goods	12.43	9.57
Other Payables	0.22	0.25
Total Other Current financial liabilities (B)	337.34	417.86
Total (A) + (B)	346.71	424.21

Note 15 : Provisions

Particulars	As at	As at
	March 31, 2021	March 31, 2020
Long-term
Provision for employee benefits (Refer note 34)
Provision for gratuity	-	0.11
Provision for leave encashment	22.03	28.33
Provision for compensatory pension*	2.21	2.34
Provision for Medical benefits	-	11.38
Total Long term Provisions (A)	24.24	42.16
Short-term
Provision for employee benefits (Refer note 34)
Provision for gratuity	-	3.27
Provision for leave encashment	7.31	7.06
Provision for superannuation	1.44	1.78
Provision for compensatory pension*	0.24	0.29
Provision for Medical benefits	-	0.66
Total Short-term provisions (B)	8.99	13.06
Total (A) + (B)	33.23	55.22

* Including 0.77 Crores (March 31, 2020 : 1.02 crores) pertaining to employees for which the liability of the Company is crystalised. Hence, it is a liability towards defined contribution plan.

` in Crores

Note 16 : Government grants

Particulars	As at	As at
	March 31, 2021	March 31, 2020
Non-current
Deferred income	67.72	68.55
Total Non-current Government Grants (A)	67.72	68.55
Current
Deferred income	7.36	6.71
Total Current Government Grants (B)	7.36	6.71
Total (A) + (B)	75.08	75.26

Government grants

Particulars	Year Ended March 31, 2021	Year Ended March 31, 2020
Balance at the beginning of the year	75.26	64.54
Received during the year (net)	6.87	17.03
Released to statement of profit and loss (net)(Refer note 19)	(7.05)	(6.31)
Balance at the end of the year	75.08	75.26

Note 17 : Other current liabilities

As at	As at
March 31, 2021	March 31, 2020
88.00	60.84
19.52	16.97
0.16	0.16
4.81	4.84
112.49	82.81

(a) Deferred income of Loyalty Program Reward Points

The Company has deferred the revenue related to the customer loyalty program reward points. The movement in deferred revenue for those reward points are given below:

Particulars	Year Ended March 31, 2021	Year Ended March 31, 2020
Balance at the beginning of the year	0.16	0.09
Add : Deferment during the year (Net)	-	0.07
Balance at the end of the year	0.16	0.16

Note 18 : Revenue from operations

Particulars	Year Ended	Year Ended
	March 31, 2021	March 31, 2020
Sale of products	4,329.57	6,412.12
Sale of services	19.22	22.79
Other Operating income
Waste sale	61.34	76.58
Gain/(Loss) on forward contracts	21.70	31.77
Export incentives	85.32	131.20
Foreign exchange fluctuation on vendors and customers (Net)	(4.17)	11.89
Liabilities no longer required written back	1.44	0.48
Others	14.12	18.48
Total	4,528.54	6,705.31

Notes to the Standalone Financial Statement

Note 18 : Revenue from operations (Contd.)

Disaggregation of Revenue from contracts with customers

Revenue based on Geography

Particulars	Year Ended	Year Ended
	March 31, 2021	March 31, 2020
Domestic	2,265.09	3,934.15
Export	2,263.45	2,771.16
Revenue from Operations	4,528.54	6,705.31

Revenue based on business segment

The Company does not have any remaining performance obligation as contracts entered for sale of goods are for a shorter duration. There are no contracts for sale of services wherein, performance obligation is unsatisfied to which transaction period has been allocated.

Particulars	Year Ended March 31, 2021	Year Ended March 31, 2020
Textile	3,853.74	5,985.59
Advanced Material	582.37	628.78
Others	92.43	90.94
Revenue from Operations	4,528.54	6,705.31

Reconciliation of revenue from operation with contract price

Particulars	Year Ended March 31, 2021	Year Ended March 31, 2020
Revenue from contract with customers as per the contract price	4,689.10	6,910.37
Less : Adjustment made to contract price on account of:
a) Discounts and Rebates	38.94	55.94
b) Sales Return	104.49	121.79
c) Bonus / incentive	16.98	26.73
d) Customer loyalty programme	0.15	0.60
Revenue from Operations	4,528.54	6,705.31

Note 19 : Other income

Particulars	Year Ended March 31, 2021	Year Ended March 31, 2020
Interest income on financial assets measured at amortized cost
- Fixed Deposits	0.35	0.37
- Loans and Advances	22.33	23.62
- Others	1.52	11.50
Scrap income	9.82	12.92
Dividend income	-	5.50
Government grants (Refer note 16)	7.05	6.31
Financial guarantee commission	1.30	1.10
Rent	3.45	4.45
Share of Profit/(Loss) from LLP	(0.32)	(0.30)
Profit on sale of Property, plant and equipment (Net)	9.61	(2.19)
Miscellaneous income	9.51	16.88
Total	64.62	80.16

` in Crores

Note 20 : Cost of raw materials and accessories consumed

Particulars	Year Ended March 31, 2021	Year Ended March 31, 2020
Inventory at the beginning of the year	227.95	453.65
Add : Purchases during the year	2,047.85	2,932.67
	2,275.80	3,386.32
Less : Inventory at the end of the year	322.87	227.95
Total	1,952.93	3,158.37

Note 21 : Purchases of stock-in-trade

Particulars	Year Ended	Year Ended
	March 31, 2021	March 31, 2020
Purchase of stock-in-trade	107.44	214.71
Total	107.44	214.71

Note 22 : Changes in inventories of finished goods, work-in-progress and stock-in-trade

Particulars	Year Ended	Year Ended
	March 31, 2021	March 31, 2020
Inventories at the end of the year
Finished goods	249.30	320.12
Inventories-in-trade	22.98	25.45
Work-in-Progress	297.78	378.62
Project work-in-progress	55.18	31.59
Waste	2.27	2.89
	627.51	758.67
Inventories at the beginning of the year
Finished goods	320.12	338.00
Inventories-in-trade	25.45	26.12
Work-in-Progress	378.62	446.80
Project work-in-progress	31.59	10.11
Waste	2.89	1.91
	758.67	822.94
(Increase) / Decrease in Inventories	131.16	64.27
Total	131.16	64.27

Note 23 : Employee benefits expense

Particulars	Year Ended March 31, 2021	Year Ended March 31, 2020
Salaries, Wages, Gratuity, Bonus and Commission (Refer note 34)	531.25	713.82
Contribution to provident and other funds (Refer note 34)	43.10	44.61
Staff welfare and training expenses	11.40	16.57
Share based payment to employees (Refer note 37)	1.13	1.12
Total	586.88	776.12

Notes to the Standalone Financial Statement

Note 24 : Finance costs

Particulars	Year Ended	Year Ended
	March 31, 2021	March 31, 2020
Interest expense on Financial Liabilities measured at amortised cost
- Loans	176.53	184.62
- Related Parties	-	5.03
- Debentures	16.10	16.28
- Lease Liabilities (Refer note 38)	8.60	12.21
- Others	2.69	1.72
Exchange differences regarded as an adjustment to borrowing costs	5.71	4.14
Other borrowing cost	0.02	0.10
Total	209.65	224.10

Note 25 : Depreciation and amortization expense

Particulars	Year Ended	Year Ended
	March 31, 2021	March 31, 2020
Depreciation on Property, plant and equipment (Refer note 5)	178.39	171.31
Depreciation on Investment properties (Refer note 6)	0.51	0.37
Amortization of Intangible assets (Refer note 7)	35.52	36.12
Depreciation on Right of use assets	22.01	32.74
Total	236.43	240.54

Note 26 : Other expenses

Particulars	Year Ended March 31, 2021	Year Ended March 31, 2020
Power and fuel	317.16	444.54
Stores and spares consumed	339.09	513.55
Processing charges	190.74	233.08
Miscellaneous Labour charges	67.76	95.33
Rent (Refer note 38)	0.19	10.08
Insurance	12.29	9.46
Printing, stationery and communication	13.16	15.13
Commission and Brokerage	22.74	24.72
Rates and taxes	11.07	9.28
Repairs :
To Building	2.44	3.08
To Machineries (including spares consumption)	78.33	128.26
To others	6.34	4.49
Freight, insurance and clearing charge	92.45	101.18
Advertisement and publicity	4.00	22.21
Software Expenses	0.55	9.59
Legal and Professional charges	20.96	30.01
Conveyance and Travelling expenses	8.04	33.80
Director's sitting fees	0.05	0.04
Sundry advances written off	0.25	1.27
Auditor's remuneration (Refer note (i) below)	1.17	1.55
Bank charges	12.66	14.68
Corporate Social Responsibility expenses (Refer note 39)	4.83	5.70
Miscellaneous expenses	55.46	59.71
Total	1,261.73	1,770.74

Notes to the Standalone Financial Statement

Note 26 : Other expenses (Contd.)

	Particulars	Year Ended March 31, 2021	Year Ended
(i)	Break up of Auditor's remuneration
	Payment to Auditors as
	Auditors	1.16	1.30
	For Other Services	-	0.23
	For reimbursement of expenses	0.01	0.02
	Total	1.17	1.55

Note 27 : Exceptional items

Particulars	Year Ended March 31, 2021	Year Ended March 31, 2020
(a) Retrenchment compensation	2.23	18.71
(b) Provision for Impairment/Loss on Sale of Investments/Loans/share application money	(15.40)	24.09
(c) Loss on Sale of Investment	40.10	-
(d) Reversal of Excise Duty Provision	-	(4.95)
Impact Due to Covid19
(a) Loss of mark to market of derivative financial instruments	-	11.40
(b) Allowances for doubtful receivables	-	3.28
(c) Reversal of Benefit under Garment and Apparel Policy, 2017	-	6.29
Total	26.93	58.82

Note 28 : Income tax

The major component of income tax expense for the years ended March 31, 2021 and March 31, 2020 are as follows:

Particulars	Year Ended	Year Ended
	March 31, 2021	March 31, 2020
Statement of Profit and Loss
Current income tax	3.40	48.71
Short provision related to earlier years
- Current Tax	(3.95)	11.95
- Deferred tax expense/(credit)	(0.88)	-
	(4.83)	11.95
Deferred tax expense/(credit)	(35.20)	18.07
Income tax expense/(credit) in the Statement of Profit and Loss	(36.63)	78.73
Statement of Other comprehensive income (OCI)
- Current income tax	7.21	(1.58)
- Deferred tax expense/(credit)	19.31	(25.24)
Income tax expense/(credit) recognised in OCI	26.52	(26.82)

Reconciliation of tax expense and the accounting profit multiplied by domestic tax rate for the year ended March 31, 2021 and March 31, 2020.

Notes to the Standalone Financial Statement

Note 28 : Income tax (Contd.)

A. Current tax

Particulars	Year Ended March 31, 2021	Year Ended March 31, 2020
Accounting profit before tax	56.04	250.11
Tax Rate	34.944%	34.944%
Current tax expenses on Profit before tax expenses at the enacted income tax rate in India	19.58	87.40
Adjustment
On account of reassessment of factory land (refer note (a) below)	(65.62)	-
On account of reavaluation of tax base of non-depreciable assets (due to indexation benefit)	(2.40)	(5.71)
Unused tax losses - Capital losses	-	(10.20)
Exempt income	-	(1.92)
Additional deduction for research and product development cost	-	(5.30)
Expenditure not deductible for tax/not liable to tax	(2.05)	1.59
Short Provision of the earlier years	(3.96)	11.95
MAT credit pertaining to earlier years	(0.87)	1.72
On account of Loss on sale of Investment and other adjustments	18.69	(0.80)
Total income tax expense/(credit)	(36.63)	78.73
Effective tax rate	(65.36)	31.48

B. Deferred tax

The Company has accrued significant amounts of deferred tax. The majority of the deferred tax (assets) & liability represents accelerated tax relief for the depreciation of property, plant and equipment, unused long-term capital loss carried forward and unused tax credit in the form of MAT credits carried forward. Significant components of Deferred tax (assets) and liabilities recognized in the financial statements of the Company are as follows:

Particulars	Balance Sheet as at			Statement of Profit and Loss and OCI for the year ended on
	March 31, 2021	March 31, 2020	March 31, 2021	March 31, 2020
Accelerated depreciation for tax purposes	239.23	232.99	6.24	36.27
Impact of fair valuation of Land	40.68	108.70	(68.02)	(5.71)
Provision for doubtful debt	(6.83)	(6.43)	(0.40)	(1.43)
Expenditure allowable on payment basis	(16.98)	(20.77)	3.79	(5.59)
Expenditure allowable over the period (Section 35D / 35DD)	(9.01)	(15.23)	6.22	(0.19)
Unused long-term capital loss	(39.14)	(39.14)	-	(10.20)
Unused tax credit available for offsetting against future taxable
income (MAT Credit Entitlement)	(163.66)	(165.53)	1.87	21.97
Others	(39.05)	(72.58)	33.53	(42.29)
Deferred tax expense/(income)			(16.77)	(7.17)
Net deferred tax liabilities	5.24	22.01
Reflected in the balance sheet as follows
Deferred tax liabilities	279.91	341.69
Deferred tax assets	(274.67)	(319.68)
Deferred tax liabilities (net)	5.24	22.01

There are certain income-tax related legal proceedings which are pending against the Company. Potential liabilities, if any have been adequately provided for, and the Company does not currently estimate any probable material incremental tax liabilities in respect of these matters. (Refer note 30).

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 387.16 crores as at March 31, 2021 (March 31, 2020: 387.16 crores). Out of the same, tax credits on losses of 219.14 crores have not been recognised on the basis that recovery is not probable in the foreseeable future. Unrecognised tax capital losses will expire on March 31, 2025, if unutilized, based on the year of origination. `

Notes to the Standalone Financial Statement

Note 28 : Income tax (Contd.)

Notes :

(a) At the time of transition to Indian Accounting Standards (Ind AS) with effect from April 1, 2015, the Company had recognised fair value of its land parcels in its books of accounts and recognised deferred tax liability on such fair Valued Land as company expected sale of such land parcels on a piecemeal basis, delinked from the business.

During the year ended March 31, 2021, the Company has reassessed the expected manner of recovery of the carrying value of all land parcels and has now determined that a number of such land parcels would not be delinked from the business as they either form an integral part of the business operations or are proximate to the factory premises. Consequently, the Company currently expects that in the event of disposal of most of the land parcels in future, these would only be disposed off along with the business and in a slump sale arrangement thereby resulting in no temporary difference between the accounting position and position as per tax laws upon such future disposal.

Accordingly, the Company has reversed deferred tax liability amounting to ` 65.62 crores pertaining to such land parcels in the Statement of Profit and loss during the year ended March 31, 2021.

Note 29 : Disclosure in respect of Construction / Job work Contracts

Particulars	Year Ended March 31, 2021	Year Ended March 31, 2020
Amount of Contract Revenue Recognized During the Year	-	2.19
Amount of Advance Received from Customers	56.87	8.92

Note 30 : Contingent liabilities

Contingent liabilities not provided for

(i) Claims against Company not acknowledged as debts 10.91	7.52
(ii) Guarantees given 161.65	82.97
(iii) Disputed demands in respect of
Excise and Customs duty 13.74	13.74
Value added tax and Central sales tax 16.61	16.61
Income tax (Refer note (d) below) 12.93	12.93
Service tax 8.77	10.75

Notes :

(a) It is not practicable for the Company to estimate the timing of cash outflows, if any, in respect of the above pending resolution of the respective proceedings.
(b) The Company does not expect any reimbursements in respect of the above contingent liabilities.
(c) The Company believes that the ultimate outcome of these proceedings will not have a material adverse effect on the Company's financial position and results of operations.
(d) During the year, the Company had reassessed the position of its contingent liability pertaining to Income tax matters as at March 31, 2021 based on the advice received from its tax counsel. Many issues raised by Income tax department are either covered by judgement of respective judicial authorities in Company's own case in different assessment years or for other assesses, in favour of assesee, which supports Company's contention. Hence, considering the probability of occurrence as remote for such issues, the Company has not considered them as part of Contingent liability in the current year.

Note 31 : Capital commitment and other commitments

` in Crores

Particulars	As at March 31, 2021	As at March 31, 2020
(a) Capital commitments Estimated amount of Contracts remaining to be executed on capital account and not provided for (Net of advances)	19.89	27.06
(b) Other commitments Export obligations against the import licenses taken for import of capital goods under the Export Promotion Capital Goods Scheme which is to be fulfilled over the period of next six years. If the Company is unable to meet these obligations, its liability would be `24.94 crores (March 31, 2020:<br>17.86 crores) which will reduce<br>` in proportion to actual exports. The Company is reasonably certain to meet its export obligations and expects no outflow, hence it does not anticipate a loss with respect to these obligations and accordingly has not made any provision in its financial statements.	149.64	107.14

Note 32 : Foreign Exchange Derivatives and Exposures not hedged

The Company holds derivative financial instruments such as foreign currency forward, option and swap 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, 2021 and March 31, 2020.

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, 2021 and consequently may impact the statement of profit or loss for that year depending upon the change in the foreign exchange rates movements.

Note 32 : Foreign Exchange Derivatives and Exposures not hedged (Contd.)

A. Foreign Exchange Derivatives

	Currency		As at March 31, 2021				As atMarch 31, 2020
Nature of instrument		Average Exchange Rate (in equivalent `) \| Amount<br>in<br>Foreign<br>currency<br>(in<br>Millions) \| Nominal<br>Amount<br>( in<br>` Crores)	MTM Value ( in `<br>Crores) \| Average<br>Exchange<br>Rate<br>(in<br>equivalent<br>` )	Amount in Foreign currency (in Millions)	Nominal Amount (`in<br>Crores) \| MTM<br>Value<br>(` in Crores)
Cash Flow Hedges
(Routed through OCI)
Forward Sales Contracts
Maturing less than 3 months	USD	74.83	40.65	304.16	4.87	73.10	27.35	199.94	(8.23)
Maturing between 3 to 6 months	USD	76.07	29.49	224.36	4.29	73.96	30.44	225.14	(8.23)
Maturing between 6 to 9 months	USD	76.35	32.25	246.22	2.87	74.17	21.16	156.94	(6.88)
Maturing between 9 to 12 months	USD	76.41	21.00	160.46	0.14	74.56	7.85	58.53	(2.69)
Total	USD		123.39	935.20	12.17		86.80	640.55	(26.03)
Option contracts *
Maturing less than 3 months	USD	-	-	-	5.51	-	-	-	(0.55)
Maturing between 3 to 6 months	USD	-	-	-	2.88	-	-	-	(2.23)
Maturing between 6 to 9 months	USD	-	-	-	1.41	-	-	-	(3.07)
Maturing between 9 to 12 months	USD	-	-	-	(1.03)	-	-	-	(3.88)
Maturing after 12 months	USD	-	-	-	(8.10)	-	-	-	-
Total	USD		-	-	0.67		-	-	(9.73)
Swap Deals
Maturing less than 3 months		-	-	-	-	-	-	-	-
Maturing between 3 to 6 months		-	-	-	-	-	-	-	-
Maturing between 6 to 9 months		-	-	-	-	-	-	-	-
Maturing between 9 to 12 months		-	-	-	-	-	-	-	-
Maturing after 12 months		-	-	-	-	74.15	24.95	185.00	(5.01)
Total			-	-	-		24.95	185.00	(5.01)
Other Hedges
(Routed through Profit & Loss)
Forward Purchase Contracts
Maturing less than 3 months	USD	73.91	49.33	364.61	(0.72)	71.97	26.57	191.22	(10.63)
Maturing between 3 to 6 months	USD	75.08	10.26	77.01	(0.39)	-	-	-	-
Maturing between 6 to 9 months	USD	-	-	-	-	-	-	-	-
Maturing between 9 to 12 months	USD	-	-	-	-	-	-	-	-
Total	USD		59.59	441.62	(1.11)		26.57	191.22	(10.63)
Option Contracts
Maturing less than 3 months	USD	-	-	-	-	74.18	9.00	66.77	(0.77)
Maturing between 3 to 6 months	USD	-	-	-	-	-	-	-	-
Maturing between 6 to 9 months	USD	-	-	-	-	-	-	-	-
Maturing between 9 to 12 months	USD	-	-	-	-	-	-	-	-
Total	USD		-	-	-		9.00	66.77	(0.77)

* Option contract are in the nature of zero premium option, hence nominal value as on the date of contract was Nil.

All derivative contracts stated above are for the purpose of hedging the underlying foreign currency exposure.

Note 32 : Foreign Exchange Derivatives and Exposures not hedged (Contd.)

B. Exposure Not Hedged

Nature of exposure	Currency	As at March 31, 2021		As at March 31, 2020
		FC In Mn	in Crores `\| FC In Mn \| in Crores<br>`
Receivables	USD	21.76	159.07	23.92	181.02
	EUR	0.28	2.39	1.34	11.10
	GBP	0.02	0.19	0.02	0.18
	AUD	0.03	0.15	0.05	0.21
Payable towards borrowings	USD	(USD 2300)	0.02	-	-
Receivable towards loans	USD	4.56	33.35	7.37	55.77
Payable to creditors	USD	3.40	24.89	3.64	27.56
	EUR	0.22	1.84	0.23	1.88
	GBP	0.07	0.68	(GBP 3832)	0.04
	AUD	(AUD 4371)	0.02	(AUD 4371)	0.02
	JPY	9.52	0.63	1.68	0.12
	CHF	0.01	0.11	0.03	0.23
	HKD	0.01	0.01	0.01	0.01

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) Fabrics, Garments and Fabric Retail. Textiles :
(b) Human Protection fabric & garments, Industrial Products, Advance Composites and Automotive fabrics. Advanced Material :
(c) E-commerce, Agriculture Produce, EPABX and One to Many Radio, Water Treatment and Others. 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.

Note 33 : Segment Reporting (Contd.)

Geographical segment

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

Summarised segment information for the years ended March 31, 2021 and March 31, 2020 are as follows:

Particulars	For the Year ended / As at March 31, 2021
	Textiles	Advanced Material	Other	Elimi nation	Total
REVENUE
External Revenue	3,853.74	582.37	92.43	-	4,528.54
Inter segment Revenue	1.11	0.16	-	(1.27)	-
Enterprise revenue	3,854.85	582.53	92.43	(1.27)	4,528.54
RESULT
Segment Result Before Finance cost	318.40	61.25	(46.02)	-	333.63
Less: Finance Cost					(209.65)
Less: Unallocable expenses (net of income)					(67.94)
Add: Tax credit					36.63
Net profit/(loss) after tax	318.40	61.25	(46.02)	-	92.67
Segment Assets	4,200.92	379.11	185.92	-	4,765.95
Unallocated Assets					1,842.78
Total Assets	4,200.92	379.11	185.92	-	6,608.73
Segment Liabilities	1,495.41	96.16	127.84	-	1,719.41
Unallocated Liabilities					34.54
Total Liabilities	1,495.41	96.16	127.84	-	1,753.95
Depreciation and amortisation expense	172.12	16.11	21.81	-	210.04
Unallocated Depreciation and amortisation expense					26.39
Total Depreciation and amortisation expense	172.12	16.11	21.81	-	236.43
Capital Expenditure	43.46	25.86	2.30	-	71.62
Unallocated Capital Expenditure					32.02
Total Capital Expenditure (Refer note (a))	43.46	25.86	2.30	-	103.64
Material non-cash items other than Depreciation and amortisation	11.09	21.76	0.23	-	33.08
Unallocated Material non-cash items
other than Depreciation and amortisation					(9.57)
Total Material non-cash items other than
Depreciation and amortisation	11.09	21.76	0.23	-	23.51

` in Crores

Note 33 : Segment Reporting (Contd.)

` in Crores

Particulars	For the Year ended / As at March 31, 2020
	Textiles	Advanced Material	Other	Elimi nation	Total
REVENUE
External Revenue	5,985.59	628.78	90.94	-	6,705.31
Inter segment Revenue	1.50	-	-	(1.50)	-
Enterprise revenue	5,987.09	628.78	90.94	(1.50)	6,705.31
RESULT
Segment Result Before Finance cos t	496.41	75.05	(55.85)	-	515.61
Less: Finance Cost					(224.10)
Less: Unallocable expenses (net of income)					(41.40)
Less: Tax expense					(78.73)
Net profit/(loss) after tax	496.41	75.05	(55.85)	-	171.38
Segment Assets	4,367.87	406.00	149.88	-	4,923.75
Unallocated Assets					1,890.80
Total Assets	4,367.87	406.00	149.88	-	6,814.55
Segment Liabilities	1,441.45	58.50	54.78	-	1,554.73
Unallocated Liabilities					93.45
Total Liabilities	1,441.45	58.50	54.78	-	1,648.18
Depreciation and amortisation expense	175.58	14.51	22.35	-	212.44
Unallocated Depreciation and amortisation expense					28.10
Total Depreciation and amortisation expense	175.58	14.51	22.35	-	240.54
Capital Expenditure	390.82	23.73	13.48	-	428.03
Unallocated Capital Expenditure					33.53
Total Capital Expenditure (Refer note (a))	390.82	23.73	13.48	-	461.56
Material non-cash items other than Depreciation and amortisation	33.10	10.01	0.59	-	43.70
Unallocated Material non-cash items other
than Depreciation and amortisation					24.64
Total Material non-cash items other
than Depreciation and amortisation	33.10	10.01	0.59	-	68.34

(a) Capital expenditure consists of additions to property, plant and equipment, intangible assets, investment properties, capital work-in-progress and Right of Use assets.

(b)

Particulars	Year Ended / As at	Year Ended / As at
	March 31, 2021	March 31, 2020
Segment Revenue*
(a) In India	2,265.09	3,934.15
(b) Rest of the world	2,263.45	2,771.16
Total	4,528.54	6,705.31
Carrying Cost of Segment Non Current Assets@
(a) In India	3,363.24	3,540.08
(b) Rest of the world	-	-
Total	3,363.24	3,540.08

* Based on location of Customers. @ Other than financial assets.

(c) Information about major customers:

Considering the nature of business of company in which it operates, the company deals with various customers including multiple geographics. No single customer has accounted for more than 10% of the company's revenue for the years ended March 31, 2021 and 2020.

Note 34 : Disclosure pursuant to Employee benefits ` in Crores

A. Defined contribution plans:

Amount of 32.93 Crores (March 31, 2020: 42.37 Crores) is recognised as expenses and included in note no. 23 "Employee benefit expense".

	Particulars	Year Ended	Year Ended
		March 31, 2021	March 31, 2020
(i)	Contribution to Provident Fund [note (a)]	13.53	17.95
(ii)	Contribution to Pension Fund [note (a)]	12.25	14.71
(iii)	Contribution to Superannuation Fund [note (b)]	1.61	1.79
(iv)	Contribution to Employees' State Insurance [note (c)]	5.54	7.92
Total		32.93	42.37

Note

(a) Employees of the Company, other than covered in Provident Fund Trust, 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 covered 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. Employees of the Company, other than covered in Provident Fund Trust, receive benefits from a government administered provident fund, which is a defined contribution plan. 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 is administered by approved Trust. The Company is required to contribute the specified amount to the Trust. The Company has no further obligations to the plan beyond its contribution to a Trust Fund.

(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

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 salary multiplied for the number of years of service. The Gratuity plan is a Funded plan administered by a Trust and the Company makes contributions to 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 remeasurements 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) Company administered Provident Fund

In case of Employees of the Company covered in Provident Fund Trust, provident fund contributions are deposited to The Arvind Mills Employees' Provident Fund Trust. The rate at which the annual interest is payable to the beneficiaries by the trust is being administered by the government. The company has an obligation to make good the shortfall, if any, between the return from the investments of the Trust and the notified interest rate. Contributions to such provident fund are recognised as employee benefits expenses when they are due in the Statement of profit and loss.The actuary has provided a valuation for provident fund liabilities on the basis of guidance issued by Actuarial Society of India.

(c) Compensatory Pension Scheme

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.

2 0 2 0 - 2 0 2 1

` inCrores

Changes in defined benefit obligation and plan assets as at Disclosure pursuantto E Note 34 :			mployee benefits (Contd.)		March 31, 2021:											` inCrores
	As at		Charged to statement of profit and loss										Remeasurement gains/(losses)in other comprehensive income			Increase	As at
Particulars	April1, 2020	Service cost	Net interest expense /(income)	of lity ** Reve- rsal Liabi-	Sub-total included in statement of profit and loss (note 23)	yees' Emplo- contri- bution	Emplo- yer's cont ribution	Transfer In	Benefit paid	(excluding Return on plan assets amounts included in net interest income)	arising Actuarial changes from changesin demog- raphic assum- ptions	changes arising changes assum- ptions Actuarial from in financial	arising adju- Actuarial changes from changesin Experience stments	of lity ** Reve- rsal Liabi-	Sub-total included in OCI	due to business com- bination	March 31, 2021
Gratuity
Defined benefit obligation	114.14	12.73	7.48	-	20.21	-	-	2.71	(18.26)	-	1.58	2.09	(8.61)	-	(4.94)	-	113.86
Fair value of plan assets	(110.76)	-	(7.27)	-	(7.27)	-	(3.27)	-	16.59	(15.64)	-	-	-	-	(15.64)		- (120.35)
Net Benefitliability/(asset)	3.38	12.73	0.21	-	12.94	-	(3.27)	2.71	(1.67)	(15.64)	1.58	2.09	(8.61)	-	(20.58)	-	(6.49)
Medical benefits** Post employment
Defined benefit obligation	12.03	-		- (10.41)	(10.41)	-	-	-	-	-	-	-	-	(1.62)	(1.62)	-	-
Net Benefitliability/(asset)	12.03	-	-	(10.41)	(10.41)	-	-	-	-	-	-	-	-	(1.62)	(1.62)	-	-
Provident Fund Scheme
Defined benefit obligation	420.84	9.38	31.39	-	40.77	27.66	-	5.48	(76.09)	-	-	-	-	-	-	-	418.66
Fair value of plan assets	(420.94)	-	(31.39)	-	(31.39) (27.66)		(9.38)	(5.48)	76.09	(9.20)	-	-	-	-	(9.20)		- (427.96)
Deficit/(Surplus)	(0.10)	9.38	-	-	9.38	-	(9.38)	-	-	(9.20)	-	-	-	-	(9.20)	-	(9.30)
Effects of asset ceiling, if any*	0.10	-	-	-	-	-	-	-	-	9.20	-	-	-	-	9.20	-	9.30
Net Benefitliability/(asset)	-	9.38	-	-	9.38	-	(9.38)	-	-	-	-	-	-	-	-	-	-
Compensatory Pension Scheme
Defined benefit obligation	1.61	0.04	0.10	-	0.14	-	-	-	-	-	0.03	0.01	(0.11)	-	(0.07)	-	1.68
Net Benefitliability/(asset)	1.61	0.04	0.10	-	0.14	-	-	-	-	-	0.03	0.01	(0.11)	-	(0.07)	-	1.68
Total benefitliability/(asset)	17.02	22.15		0.31 (10.41)	12.05	-	(12.65)	2.71	(1.67)	(15.64)	1.61	2.10	(8.72) (1.62)		(22.27)	-	(4.81)

mployee benefits (Contd.)
























Disclosure pursuantto E























Note 34 :

Changes in defined benefit obligation and plan assets as at					March 31, 2020:
Particulars	April1, 2019 As at	cost Service	Charged to statement of profit and loss Net interest expense /(income)	Reve- rsal of Liabi- lity **	statement of profit and loss Sub-total included in (note 23)	yees' Emplo- contri- bution	Emplo- yer's cont ribution	Transfer In	Benefit paid	plan assets (excluding amounts in net interest Return on included income)	changes arising changesin demog- raphic assum- ptions Actuarial from	arising Actuarial changes from changes in financial assum- ptions	Remeasurement gains/(losses)in other comprehensive income changes arising Experience adju- stments Actuarial from changesin	Reve- rsal of Liabi- lity **	Sub-total included in OCI	Increase due to business com- bination	As at 31, 2020 March
Gratuity
Defined benefit obligation	117.11	12.82	8.74	-	21.56	-	-	-	(21.29)	-	1.38	(0.61)	(4.12)	-	(3.35)	0.11	114.14
Fair value of plan assets	(129.09)	-	(9.64)	-	(9.64)	-	-	-	19.39	8.58	-	-	-	-	8.58	-	(110.76)
Net Benefitliability/(asset)	(11.98)	12.82	(0.90)	-	11.92	-	-	-	(1.90)	8.58	1.38	(0.61)	(4.12)	-	5.23	0.11	3.38
Medical benefits** Post employment
Defined benefit obligation	16.05	0.40	1.20	-	1.60	-	-	-	(0.50)	-	(3.00)	(0.16)	(1.96)	-	(5.12)	-	12.03
Net Benefitliability/(asset)	16.05	0.40	1.20	-	1.60	-	-	-	(0.50)	-	(3.00)	(0.16)	(1.96)	-	(5.12)	-	12.03
Provident Fund Scheme
Defined benefit obligation	410.25	12.31	31.03	-	43.34	35.21	-	4.66	(72.62)	-	-	-	-	-	-	-	420.84
Fair value of plan assets	(411.07)	-	(31.03)	-	(31.03)	(35.21)	(12.31)	(4.66)	72.62	0.72	-	-	-	-	0.72		- (420.94)
Deficit/(Surplus)	(0.82)	12.31	-	-	12.31	-	(12.31)	-	-	0.72	-	-	-	-	0.72	-	(0.10)
Effects of asset ceiling, if any*	0.82	-	-	-	-	-	-	-	-	(0.72)	-	-	-	-	(0.72)	-	0.10
Net Benefitliability/(asset)	-	12.31	-	-	12.31	-	(12.31)	-	-	-	-	-	-	-	-	-	-
Compensatory Pension Scheme
Defined benefit obligation	2.10	0.05	0.16	-	0.21	-	-	-	-	-	-	0.04	(0.74)	-	(0.70)	-	1.61
Net Benefitliability/(asset)	2.10	0.05	0.16	-	0.21	-	-	-	-	-	-	0.04	(0.74)	-	(0.70)	-	1.61
Total benefitliability/(asset)	6.17	25.58	0.46	-	26.04	-	(12.31)	-	(2.40)	8.58	(1.62)	(0.73)	(6.82)	-	(0.59)	0.11	17.02

*TheCompany has an obligation tomake good the shortfall, if any.

Themajor categories of plan assets ofthe fair value ofthe total plan assets ofGratuity are asfollows:

Particulars	(%) oftotal plan assets March 31, 2021 As at	March 31, 2020 (%) oftotal plan assets As at
CentralGovernment Securities	% 0.00	0.00%
Public Sector/Financial Institutional Bonds	% 0.00	0.00%
Mutual Fund with Portfolio	% 99.97	99.97%
Others(including bank balances)	% 0.03	0.03%
(%) oftotal plan assets	% 100	100%

N o t e s t o t h e S t a n d alo n e Fin a n cial S t a t e m e n t

149

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

The major categories of plan assets of the fair value of the total plan assets of Provident Fund are as follows:

2020 - 2021

Particulars	As at March 31, 2021	As at March 31, 2020
	(%) of total plan assets	(%) of total plan assets
Government Securities (Central & State)	54.43%	55.34%
Public Sector and Private Sector Bonds	35.76%	36.35%
Portfolio with Mutual Fund	5.50%	5.60%
Others (including bank balances)	4.31%	2.71%
(%) of total plan assets	100%	100%

The principal assumptions used in determining above defined benefit obligations for the Company's plans are shown below:

Particulars	As at March 31, 2021	As at March 31, 2020
Discount rate	6.06%	6.56%
Future salary increase	5.00%	5.00%
Medical cost inflation**	N/A	5.00%
Expected rate of return on plan assets	6.06%	6.56%
Attrition rate	15.00%	10.00%
Morality rate during employment	Indian assured lives Mortality	Indian assured lives Mortality
	(2006-08)	(2006-08)
Morality rate after employment	N/A	N/A

Assumptions used in determining the present value obligation of the defined benefit plan under the Deterministic Approach :

Particulars	As at March 31, 2021	As at March 31, 2020
Discount rate	6.06%	6.50%
Average remaining tenure of investment portfolio	6 years	5.16 years
Guaranteed rate of return	8.50%	8.50%

A quantitative sensitivity analysis for significant assumption is as shown below for the defined benefit plan:

Particulars	Sensitivity	Increase / (decrease) in defined benefit obligation (Impact)
		Year ended March 31, 2021	Year ended March 31, 2020
Gratuity
Discount rate	1% increase	(4.07)	(5.49)
	1% decrease	4.48	6.19
Salary increase	1% increase	4.48	6.22
	1% decrease	(4.15)	(5.62)
Attrition rate	1% increase	0.09	0.35
	1% decrease	(0.11)	(0.42)
Post employment medical benefits**
Discount rate	1% increase	N/A	(0.84)
	1% decrease	N/A	0.82
Medical cost inflation	1% increase	N/A	0.69
	1% decrease	N/A	(0.60)
Attrition rate	1% increase	N/A	(0.36)
	1% decrease	N/A	0.47
Compensatory Pension Scheme
Discount rate	1% increase	(0.03)	(0.04)
	1% decrease	0.03	0.04

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

In presenting the above sensitivity analysis, the present value of defined benefit obligation has been calculated using the projected unit credit method at the end of reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognized in the balance sheet. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared with the previous period.

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

Maturity analysis (Expected undiscounted future benefit payments for the defined benefit plan)

` in Crores

Particulars	As at	As at
	March 31, 2021	March 31, 2020
Gratuity
Within the next 12 months	29.85	25.93
From 2 to 5 years	52.74	44.67
From 6 to 10 years	36.45	43.54
Post employment medical benefits**
Within the next 12 months	-	0.66
From 2 to 5 years	-	2.86
From 6 to 10 years	-	8.51
Compensatory Pension Scheme
Within the next 12 months	0.38	0.38
From 2 to 5 years	1.52	1.23
From 6 to 10 years	-	-

Weighted average duration of defined plan obligation (based on discounted cash flows)

Particulars	As at	As at
	March 31, 2021	March 31, 2020
	In Years	In Years
Gratuity	5	7
Post employment medical benefits**	N/A	7
Compensatory Pension Scheme	3	3

The Company does not have any contributions expected towards planned assets for the next year.

C. Other Long term employee benefit plans:

a) Leave encashment

The Company has a policy on leave encashment which are both accumulating and non-accumulating in nature. The expected cost of accumulating leave encashment is determined by actuarial valuation performed by an independent actuary at each Balance Sheet date using projected unit credit method on the additional amount expected to be paid/availed as a result of the unused entitlement that has accumulated at the Balance Sheet date. Expense on non-accumulating compensated absences is recognized in the period in which the absences occur.

The Company has recognised following as expenses and included in note no. 24 "Employee benefit expense".

Particulars	Year Ended	Year Ended
	March 31, 2021	March 31, 2020
Leave Encashment	12.70	12.29
Total	12.70	12.29

** Under the Post- medical benefits scheme, employees and their spouses used to be covered for hospitalisation benefits after retirement, on completion of specified number of years services. The cover used to be available to these beneficiaries until they were alive. Thus, liabilities with regard to the plan were determined by actuarial valuation, performed by an independent actuary, at each Balance Sheet date using the projected unit credit method and the Company recognized the net obligation of the defined benefit plan in its Balance Sheet as an asset or liability. Gains and losses through re-measurements of the net defined benefit liability were recognized in other comprehensive income and were not reclassified to profit or loss in subsequent periods. employment

During the year however, the company has revised the policy for post- medical benefits plan, as a result of which, the obligation to pay for medical benefits premium of retired employees has been shifted from the company to respective employees. Consequently, the company has reversed the outstanding provision for post- medical benefits in the current year. employment employment

Note 35 : Disclosure of Related Party Transactions in accordance with Ind AS 24 - Related Party Disclosures

2021

(a)	Name of Related Parties and Nature of Relationship :
(I)	Subsidiaries
1	Arvind Envisol Limited
2	Arvind Smart Textiles Limited
3	Syntel Telecom Limited
4	Arvind Internet Limited
5	Arvind Goodhill Suit Manufacturing Private Limited
6	Arvind Sports Fashion Private Limited
	(Previously Known as Arvind Ruf & Tuf Private Limited)
7	Arvind PD Composites Private Limited
8	Arvind OG Nonwovens Private Limited
9	Arvind BKP Berolina Private Limited (Previously known as
	Arvind Transformational Solutions Private Limited)
10	Arvind Premium Retail Limited
11	Arvind True Blue Limited
12	Arya Omnitalk Wireless Solutions Private Limited
13	Arvind Polser Engineered Composite Panels Private Limited
14 15	Arvind Lifestyle Apparel Manufacturing PLC, Ethiopia Arvind Enterprise FZC
16	Arvind Worldwide Inc., USA
17	Arvind Envisol PLC
18	AJ Environmental Solutions Company	w.e.f. October 25, 2019
19	Westech Advance Materials Limited
20	Brillaire Inc
21	Arvind Textile Mills Limited, Bangladesh
22	Arvind Niloy Exports Private Limited, Bangladesh
23	Arvind Worldwide(M) Inc., Mauritius
24	Arvind Overseas (M) Inc., Mauritius
25	Arvind Spinning Limited
26	Maruti Ornet and Infrabuild LLP
27	Enkay Converged Technologies LLP
28	Arvind Foundation
(II)	Joint Ventures
1	Arya Omnitalk Radio Trunking Services Private Limited
2	Arvind Norm CBRN Systems Private Limited
3	Adient Arvind Automotive Fabrics India Private Limited
4	Arudrama Developers Private Limited
5	Arvind and Smart Value Homes LLP
6	PVH Arvind Manufacturing PLC, Ethiopia	w.e.f. October 1, 2019
	(III) Key Management Personnel
1	Mr. Sanjay S. Lalbhai	Chairman and Managing Director
2	Mr. Jayesh K. Shah	Director & Chief Financial Officer
3	Mr. Punit S. Lalbhai	Executive Director
4	Mr. Kulin S. Lalbhai	Executive Director
5	Mr. Bakul Harshadrai Dholakia	Non-Executive Director
6	Mr. Dileep Chinubhai Choksi	Non-Executive Director
7	Mr. Samir Uttamlal Mehta	Non-Executive Director (up to July 28, 2019)
8	Ms. Renuka Ramnath	Non-Executive Director
9	Mr. Vallabh Roopchand Bhansali	Non-Executive Director (up to May 10, 2019)
10	Mr. Nilesh Dhirajlal Shah	Non-Executive Director
11	Mr. Arpit Kantilal Patel	Non-Executive Director (w.e.f. May 17, 2019)

Note 35 : Disclosure of Related Party Transactions in accordance with Ind AS 24 - Related Party Disclosures (C0ntd.)

(a)	Name of Related Parties and Nature of Relationship :
	(IV) Relatives of Key Management Personnel
1	Mrs. Jayshree S Lalbhai
2	Mrs. Poorva P Lalbhai
3	Mrs. Jaina K Lalbhai
(V)	Enterprise over which Key Management personnel are
	able to exercise significant influence
1	Aura Securities Private Limited
2	Amplus Capital Advisors Private Limited
3	Arvind Smartspaces Limited
4	The Anup Engineering Limited
5	Arvind Fashions Limited
6	Arvind Lifestyle Brands Limited
7	Arvind Beauty Brands Retail Private Limited
8	Calvin Klein Arvind Fashion Private Limited
9	Tommy Hilfiger Arvind Fashions Private Limited
10	Arvind Youth Brands Private Limited	w.e.f. February 27, 2020
11	White Ocean Business Ventures LLP
	(VI) Trusts and Others
1	Arvind Mills Employees' Provident Fund
2	Arvind Mills Employees' Gratuity Fund
3	Lalbhai Group of Companies Officers' Superannuation Fund

2020 - 2021

Notes to the Standalone Financial Statement

Disclosure in respect of Related Party Disclosure of Related Party Note 35 : (b)	Transactions in accordance Transactions :		with Ind		AS 24 - Related Party		Disclosures (C	0ntd.)				` inCrores
Particulars		Subsidiaries		Ventures Joint		Key Management Personnel and relatives	Trusts		Company under Key Managerial the control of Personnel			Total
		Year ended / as at		Year ended / as at		Year ended / as at	Year ended / as at		Year ended / as at			Year ended / as at
	31, 2021 March	31, 2020 March	31, 2021 March	31, 2020 March	31, 2021 March	31, 2020 March	31, 2021 March	31, 2020 March	31, 2021 March	31, 2020 March	31, 2021 March	31, 2020 March
(I) Transactions during the year
Purchase of Property, plant and equipment Purchase ofGoods	60.40	83.34 18.65	0.01	1.42	- -	-	-	-	-	4.62	60.41	89.38 18.65
Sales ofGoods	1.22 101.41	147.88	3.72 -	- 0.01	-	- -	- -	- -	8.03 -	- 39.95	4.94 109.44	187.84
Sale of Property, plant and equipment	0.54	2.23	-	-	-	-	-	-	0.04	-	0.58	2.23
Services Rendered	6.17	9.72	0.05	2.00	-	-	-	-	8.97	8.81	15.19	20.53
Expenses Recovered RentIncome	2.75 6.41	5.64 2.61	0.45	1.50 3.28	- -	- -	-	- -	0.11	0.68 22.37	18.00 3.31	4.79 31.29
Remuneration	-	-	1.59 -	-	3.94	11.28	- -	-	10.00 -	-	3.94	11.28
Sitting Fees paid toNon-ExecutiveDirectors	-	-	-	-	0.05	0.04	-	-	-	-	0.05	0.04
mission toNon-ExecutiveDirectors Com	-	-	-	-	0.37	0.38	-	-	-	-	0.37	0.38
Services Received	43.61	18.80	2.30 -	0.21	-	-	-	-	-	0.94	45.91	19.95
Reimbursement of expenses Rent Expenses	0.12 -	0.02 -	-	- -	- -	- -	- -	- -	9.03 -	- 18.28	0.12 9.03	0.02 18.28
Interest Expenses	-	2.95	-	-	-	-	-	-	-	2.08	-	5.03
DonationGiven	8.38	2.00	-	-	-	-	-	-	-	-	8.38	2.00
ContributionGiven for Employee Benefit Plans	-	-	-	-	-	-	3.35	31.28	-	-	3.35	31.28
Share of ProfitfromLLP	(`33,053/-)	-	(0.32)	(0.29)	-	-	-	-	-	-	(0.32)	(0.29)
Dividend Income	-	2.79	-	2.71	-	-	-	-	-	-	-	5.50
InterestIncome	21.47	17.57	-	-	-	-	-	-	-	-	21.47	17.57
mission Income GuaranteeCom	1.30	1.10	-	-	-	-	-	-	-	2.14	1.30	3.24
Provision /(Reversal) of diminution in value ofinvestments	(16.52)		-								(16.52)
Impairmentin value of Loan	1.12	11.46 0.82	-	10.33 -	- -	- -	- -	- -	- -	- -	1.12	21.79 0.82
LoanGiven	600.60	415.35	-	-	-	-	-	-	-	-	600.60	415.35
Receipttowards LoanGiven	645.19	257.85	-	-	-	-	-	-	-	-	645.19	257.85
Loan Taken	56.81	7.55	-	-	-	-	-	-	-	-	56.81	7.55
Repayment of Loan	56.81	82.55	-	-	-	-	-	-	-	44.36	56.81	126.91
ShareApplicationMoneyGiven	50.00	3.66	-	-	-	-	-	-	-	-	50.00	3.66
Sale ofInvestment Investmentmade	115.13 28.71	- 25.96	-	5.33 -	- -	- -	-	- -	-	- -	115.13 28.71	31.29 -
Withdrawal of capitalContribution	-	-	0.32	0.29	-	-	- -	-	- -	-	0.32	0.29
(II) Balances as at year end
Guarantees	161.65	82.97	-	-	-	-	-	-	-	-	161.65	82.97
Trade Receivables	56.05	64.30	1.10	4.58	-	-	-	-	48.65	52.68	105.80	121.56
Investments	466.53	476.24	85.01	85.33	-	-	-	-	-	-	551.54	561.57
Provision forImpairment ofInvestment LoanGiven	(11.34)	(27.87) 297.08	(10.33) -	(10.33)		-	-	-	-	-	(21.67)	297.08 (38.20)
Allowance forDoubtful Loan	250.94 (15.96)	(14.85)	-	- -	- -	- -	- -	- -	- -	- -	250.94 (15.96)	(14.85)
OtherCurrentAssets	1.53	1.45	2.78	2.13	-	-	6.49	-	7.35	2.91	18.15	6.49
OtherCurrent FinancialAssets	18.77	15.56	-	-	-	-	-	-	-	-	18.77	15.56
OtherNonCurrentAssets	-	2.15	- -	-	-	-	-	-	0.25	0.25	0.25	2.40
OtherCurrent Financial Liabilities Trade Payable	20.70 0.05	23.45 0.08	4.39	- -	0.34 -	- -	0.13 -	- -	13.44 -	9.68 -	4.44 34.61	33.13 0.08
Short TermPorvision	-	-	-	-	-	-	1.44	5.05	-	-	1.44	5.05

Note 35 : Disclosure of Related Party Transactions in accordance with Ind AS 24 - Related Party Disclosures (C0ntd.)

` in Crores

(c)Disclosures pursuant to the Regulation 34(3) read with para A of Schedule V to the SEBI (Listing obligations and disclosure requirements) Regulations, 2015 read with section 186(4) of the Companies Act, 2013.

Loans and Advances in the nature of loans

List of Related Parties	Purpose	Balance as at March 31, 2021	Balance as at March 31, 2020
Loans and Advances
Arvind Worldwide (M) Inc.	General Business Purpose	5.23	5.23
Less : Allowance for doubtful loan		(5.23)	(5.23)
		-	-
Arvind Premium Retail Limited	General Business Purpose	9.94	9.61
Less : Allowance for doubtful loan		(9.94)	(9.61)
		-	-
Arvind Worldwide Inc. USA	General Business Purpose	-	20.43
Syntel Telecom Limited	General Business Purpose	26.41	24.88
Arvind Internet Limited	General Business Purpose	0.26	0.21
Arvind Sports Fashion Private Limited	General Business Purpose	88.78	86.24
(Previously Known as Arvind Ruf & Tuf Private Limited)
Arvind True Blue Limited	General Business Purpose	23.37	76.41
Arvind Smart Textiles Limited	General Business Purpose	25.93	37.14
Arvind BKP Berolina Private Limited (Previously known as
Arvind Transformational Solutions Private Limited)	General Business Purpose	0.01	( 20,000/-) `
Arvind Envisol Limited	General Business Purpose	33.75	-
Arvind Polser Engineered Composite Panels Private Limited	General Business Purpose	4.49	3.83
Arvind Lifestyle Apparel Manufacturing PLC, Ethiopia	General Business Purpose	19.37	20.05
Arvind Enterprise FZC	General Business Purpose	12.61	13.05
Total(A)		234.98	282.24
Corporate Guarantee given on behalf of
Arvind Envisol Limited	Facilitate Trade Finance	94.91	28.00
Arvind Smart Textiles Limited	Facilitate Trade Finance	45.32	54.97
Enkay Converged Technologies LLP	Facilitate Trade Finance	2.86	-
Arya Omnitalk Wireless Solutions Private Limited	Facilitate Trade Finance	18.56	-
Total(B)		161.65	82.97
Total(A+B)		396.63	365.21

List of Related Parties	Purpose	Maximum Outstanding During
		March 31, 2021	March 31, 2020
Loans and Advances
Arvind Worldwide (M) Inc.	General Business Purpose	5.23	5.23
Arvind Worldwide Inc. USA	General Business Purpose	20.43	20.43
Arvind Lifestyle Apparel Manufacturing PLC, Ethiopia	General Business Purpose	21.94	21.94
Arvind Enterprise FZC, Sharjah	General Business Purpose	13.05	13.05
Arvind Envisol Limited	General Business Purpose	38.94	16.56
Syntel Telecom Limited	General Business Purpose	31.51	25.88
Arvind Internet Limited	General Business Purpose	0.26	0.21
Enkay Converged Technologies LLP	General Business Purpose	0.65	( 50,000/-) `
Arvind Sports Fashion Private Limited	General Business Purpose	88.78	86.24
(Previously Known as Arvind Ruf & Tuf Private Limited)
Arvind Premium Retail Limited	General Business Purpose	10.73	9.61
Arvind True Blue Limited	General Business Purpose	88.97	76.40
Arvind Polser Engineered Composite Panels Private Limited	General Business Purpose	4.49	8.92
Arvind Smart Textiles Limited	General Business Purpose	103.74	79.12
Arvind BKP Berolina Private Limited (Previously known as	General Business Purpose	0.01	(` 20,000/-)
Arvind Transformational Solutions Private Limited)

Note 35 : Disclosure of Related Party Transactions in accordance with Ind AS 24 - Related Party Disclosures (C0ntd.)

(d) Terms and conditions of transactions with related parties

(1) Outstanding balances other than loan given and taken and fair value of financial guarantee contract, at the year-end are unsecured and interest free and settlement occurs in cash.
(2) Loans in INR given to the related party carries interest rate of 8.75% (March 31, 2020: 8.75%). Loans in USD given to the related party carries an interest rate of 2.50% (March 31, 2020 : 3.90%).
(3) Loans in INR taken from the related party carries an interest rate 8.75% (March 31, 2020 : 8.75% 8.80%).
(4) Financial guarantee given to Bank on behalf of subsidiaries carries no charge and are unsecured.
(5) No repayment schedule has been fixed in case of above mentioned Loans in the nature of loans given to Subsidiary Companies and are repayable on demand.

(e) Commitments with related parties

The Company has provided commitment of 5.31 Crores to the related party as at March 31, 2021 (March 31, 2020: 4.19 Crores).

(f) Transactions with key management personnel

The remuneration of key management personnel during the year was as follows :

Particulars	Year ended	Year ended
	March 31, 2021	March 31, 2020
Short-term employee benefits	3.80	11.13
Post employment benefits	0.30	0.25
Other long-term employment benefits	0.04	0.01
Others - Contribution towards Provident Fund	0.22	0.31
Total compensation paid to key management personnel	4.36	11.70

The amounts disclosed in the table are the amounts recognised as an expense during the year including expense of share based payment of 0.42 Crores (March 31, 2020 NIL) in respect of Director & Chief Financial Officer. The remuneration of key management personnel is determined by the Remuneration committee.

Note 36 : Earning per share:

Particulars		Year ended March 31, 2021	Year ended March 31, 2020
Profit attributable to ordinary equity holders	` in Crores	92.67	171.38
Weighted average number of equity shares for basic EPS (a)	No.	25,88,83,636	25,87,33,462
Effect of potential Ordinary shares on Employee Stock Options outstanding (b)	No.	3,85,758	86,648
Weighted average number of Ordinary shares in computing diluted
earnings per share (a) + (b)	No.	25,92,69,394	25,88,20,110
Nominal value of equity shares	`	10	10
Basic earning per share	`	3.58	6.62
Diluted earning per share	`	3.57	6.62

` in Crores

2020 - 2021

Note 37 : Share based payments

A. The Company has instituted Employee Stock Option Scheme 2008 (ESOS 2008), pursuant to the approval of the shareholders of the company at their extra ordinary general meeting held on October 23, 2007. Under ESOS 2008, the Company has granted options convertible into equal number of equity shares of the face value of 10 each to its certain employees. The following table sets forth the particulars of the options outstanding as on March 31, 2021 under ESOS 2008: `

Scheme	ESOS 2008
Date of grant	May 23, 2014		August 22, 2016 October 25, 2019	August 31, 2020	August 31, 2020		August 31, 2020 August 31, 2020
Expiry Date	April 30, 2019		August 22, 2017September 30, 2023 August 31, 2022		August 31, 2023	August 31, 2021	August 31, 2021
Number of options granted	10,50,000	9,00,000	2,00,000	6,50,000	6,50,000	1,11,750	9,00,000
Number of options outstanding	5,26,000	9,00,000	2,00,000	6,50,000	6,50,000	1,11,750	9,00,000
Exercise price per option	`57.51 \| 90.81<br>`	45.45 `\| 35.55<br>`	35.55 `\| 10.00<br>`	35.55 `
Fair Value of option on Grant date	36.65 `\| 14.00<br>`	13.31 `\| 18.95<br>`	11.98 `\| 23.97<br>`	8.07 `
Vesting period		Over a period of 1 to 5 years from the date of grant
Vesting requirements			On continued employment with the company and fulfilment of performance parameters.
Exercise period	1.75 to 5 years from the date of vesting
Method of settlement			Through allotment of one equity share for each option granted.

B. Movement in Stock Options during the year :

The following reconciles the share option outstanding at the beginning and at the end of the year :

Particulars		Year Ended March 31, 2021	Year Ended March 31, 2020
	No. of Options	Weighted Average Exercise Price	No. of Options	Weighted Average Exercise Price
Outstanding at the beginning of the year	19,83,000	69.12	15,76,000	76.53
Vested during the year	1,57,000	10.00	6,76,000	57.51
Granted during the year	23,11,750	34.31	5,57,000	45.04
Lapsed/Forfeited during the year	2,00,000	72.15	-	-
Exercised during the year	1,57,000	10.00	1,50,000	57.51
Outstanding at the end of the year	39,37,750	50.89	19,83,000	69.12
Exercisable at the end of the year	14,26,000	78.53	14,26,000	78.53

C. Share Options Exercised during the year:

Option Series	No. of Options	Exercise Date	Weighted Average Share Price at Exercise Date
Options exercised during the year	1,57,000	July 4, 2020	32.53

D. Share Options Outstanding at the end of the year:

The share options outstanding at the end of the year had a weighted average exercise price of 50.89 (as at March 31,2020: 69.12),and a weighted average remaining contractual life of 3.58 Years (as at March 31,2020: 3.42 years). The range of exericse price is from 10.00 to90.81.

Note 37 : Share based payments (Contd.)

E. Significant Assumptions of Valuation on New Grant:

Weighted Average Information:

(i)	Share price ( ) `	33.50
(ii)	Exercise price ( ) `	34.31
(iii)	Expected volatility	74.90%
(iv)	Risk-free interest rate	4.27%
(v)	Any other inputs to the model	None
(vi)	Method used and the assumptions made to incorporate effects	Binomial Option Pricing Model
	of expected early exercise
	(vii) How expected volatility was determined, including an	The volatility of the Company's stock price on stock exchanges over
	explanation of the extent of to which expected volatility	the expected life of the options has been considered.
	was based on historical volatility
	(viii) Whether any or how any other features of option grant were	None
	incorporated into the measurement of fair value, such as
	market condition.

E. Expense arising from share- based payment transactions

Total expenses arising from share- based payment transactions recognised in profit or loss as part of employee benefit expense were as follows :

Particulars	Year ended	Year ended
	March 31, 2021	March 31, 2020
Share Based Payment to Employees	1.13	1.13

Note 38 : Leases

A. For transition, The Company has elected not to apply the requirements of Ind AS 116 to leases which are expiring within 12 months from the date of transition by class of asset and leases for which the underlying asset is of low value on a lease-by-lease basis. The Company has also used the practical expedient provided by the standard when applying Ind AS 116 to leases previously classified as operating leases under Ind AS 17 and therefore, has not reassessed whether a contract, is or contains a lease, at the date of initial application, relied on its assessment of whether leases are onerous, applying Ind AS 37 immediately before the date of initial application as an alternative to performing an impairment review, excluded initial direct costs from measuring the right of use asset at the date of initial application and used hindsight when determining the lease term if the contract contains options to extend or terminate the lease. The Company has used a single discount rate to a portfolio of leases with similar characteristics.

On transition, The Company recognised a lease liability measured at the present value of the remaining lease payments. The right of use asset is recognised at its carrying amount as if the standard had been applied since the commencement of the lease, but discounted using the lessee's incremental borrowing rate as at April 1, 2019. The weighted average incremental borrowing rate of 9% has been applied to lease liabilities recognised in the balance sheet at the date of initial application.

On application of Ind AS 116, the nature of expenses has changed from lease rent in previous periods to depreciation cost for the right of use asset and finance cost for interest accrued on lease liability.

The difference between the future minimum lease rental commitments towards non-cancellable operating leases reported as at March 31, 2019 compared to the lease liability as accounted as at April 1, 2019 is primarily due to inclusion of present value of the lease payments for the cancellable term of the leases, reduction due to discounting of the lease liabilities as per the requirement of Ind AS 116 and exclusion of the commitments for the leases to which The Company has chosen to apply the practical expedient as per the standard.

The Company has adopted modified retrospective approach as per para C8 (C) (i) of Ind AS 116, Leases to its leases effective from accounting period beginning from April 1, 2019 and recognised Right of Use assets and Lease Liability as on April 1, 2019 and difference between Right of Use Assets and Lease Liability, net of deferred tax amounting to 18.87 crores (Deferred Tax 10.13 crores) has been adjusted in retained earnings.

The Company has taken land, factory buildings, godowns, offices, plant and machinaries and other facilities on lease. B.

2020 - 2021

` in Crores

Note 38 : Leases (Contd.)

Disclosures as per Ind AS 116 - Leases are as follows:

C. The changes in the carrying value of ROU assets for the year ended on March 31, 2021 are as follows :

Particulars	Land & Building	Others	Total
Balance at the beginning of the year	72.95	16.77	89.72
Additions during the year	2.42	-	2.42
Deletions/cancellation/modification during the year	(15.14)	(5.58)	(20.72)
Depreciation	(16.30)	(5.71)	(22.01)
Balance at the end of the year	43.93	5.48	49.41

The changes in the carrying value of ROU assets for the year ended on March 31, 2020 are as follows :

Particulars	Land & Building	Others	Total
Recognition of ROU Asset on account of adoption of Ind AS 116	87.22	54.79	142.01
Additions during the year	5.14	-	5.14
Deletions/cancellation/modification during the year	(1.56)	(23.13)	(24.69)
Depreciation	(17.85)	(14.89)	(32.74)
Balance at the end of the year	72.95	16.77	89.72

The aggregate depreciation expense on ROU assets is included under depreciation expense in the Statement of Profit and Loss.

D. The movement in lease liabilities are as follows :

Particulars	Year ended March 31, 2021	Year ended March 31, 2020
Balance at the beginning of the year	118.00	-
Recognition of lease liabilities on account of adoption of Ind AS 116	-	171.01
Additions during the year	2.42	5.14
Deletions/cancellation/modification during the year	(25.82)	(26.34)
Finance cost accrued during the year	8.60	12.21
Payment of lease labilities	(31.55)	(44.02)
Balance at the end of the year	71.65	118.00

The break-up of current and non-current lease liabilities is as under :

Particulars	As at March 31, 2021	As at March 31, 2020
Current Non Current	17.62 54.03	26.30 91.70
Total	71.65	118.00

E. The details of contractual maturities of lease liabilities on discounted basis are as follows:

Particulars	As at March 31, 2021	As at March 31, 2020
Less than one year One to five years More than five years	17.62 41.80 12.23	26.30 71.76 19.94
Total	71.65	118.00

F. The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the obligations related to lease liabilities as and when they fall due.

Note 38 : Leases (Contd.)

G. The amount recognised in the statement of profit or loss are as follows:

` in Crores

Particulars	Year ended March 31, 2021	Year ended March 31, 2020
Depreciation expense of right of use assets	22.01	32.74
Interest expense on lease liabilities	8.60	12.21
Rent expense - short-term lease and leases of low value assets	0.19	10.08
Total	30.80	55.03

Note 39 : Corporate Social Responsibility (CSR) Activities:

(a) The Company is required to spend 5.06 Crores (March 31, 2020 : 5.86 Crores) on CSR activities under section 135 of the Act.

Amount spent during the year towards CSR activities are as follows: (b)

	Particulars			Year ended March 31, 2021 Year ended March 31, 2020
		In cash	In cash for FY 2019-20	Yet to be Total paid in cash		In cash	Yet to be paid in cash	Total
(i) (ii)	Construction/acquisition of any asset Contribution to various Trusts / NGOs / Societies /	-	-	-	-	-	-	-
(iii)	Agencies and utilization thereon Expenditure on Administrative Overheads for CSR	4.81 0.25	3.57 -	- -	8.38 0.25	2.15 0.10	3.55 -	5.70 0.10

Note 40 : Financial Instruments by category

(i) Financial assets by category

			As at March 31, 2021					As atMarch 31, 2020
Particulars	Cost	Fair value through Profit and Loss (FVTPL)	Fair value through Other Comprehen sive Income (FVTOCI)	Amortised cost	Total	Cost	Fair value through Profit and Loss (FVTPL)	Fair value through Other Comprehen sive Income (FVTOCI)	Amortised cost	Total
Investments
- Equity shares (including share application money pending allotment)	439.66	-	2.10	-	441.76	416.84	-	2.10	-	418.94
- Preference Shares	-	-	-	-	-	16.00	-	-	-	16.00
- Debentures	-	-	-	0.02	0.02	-	-	-	0.02	0.02
- Government securities	-	-			- (`23,000/-) ( 23,000/-)<br>`	-	-		- ( 23,000/-) ( 23,000/-) `\|`
- Limited liability partnership	90.19	-	-	-	90.19	90.51	-	-	-	90.51
Trade receivables	-	-	-	933.68	933.68	-	-	-	898.32	898.32
Loans	-	-	-	258.36	258.36	-	-	-	306.09	306.09
Cash and cash equivalents	-	-	-	9.80	9.80	-	-	-	20.61	20.61
Other bank balances	-	-	-	9.45	9.45	-	-	-	9.51	9.51
Other financial assets	-	-	23.64	142.76	166.40	-	-	0.03	117.39	117.42
Total Financial assets	529.85	-	25.74	1,354.07	1,909.66	523.35	-	2.13	1,351.94	1,877.42

(ii) Financial liabilities by category

	As at March 31, 2021			As at March 31, 2020
Particulars	Fair value through Profit and Loss (FVTPL)	Amortised cost	Total	Fair value through Profit and Loss(FVTPL)	Amortised cost	Total
Borrowings	-	1,700.93	1,700.93	-	2,065.04	2,065.04
Lease Liabilities	-	71.65	71.65	-	118.00	118.00
Trade payable	-	1,322.40	1,322.40	-	1,118.31	1,118.31
Other Financial Liabilities	1.34	345.37	346.71	1.51	422.70	424.21
Total Financial liabilities	1.34	3,440.35	3,441.69	1.51	3,724.05	3,725.56

For Financial instruments risk management objectives and policies, refer note 42.

` in Crores

161

Note 41 : Fair value disclosures for financial assets and financial liabilities:

(a) Set out below is a comparison, by class, of the carrying amounts and fair value of the Company's financial instruments, other than those with carrying amounts that are reasonable approximations of fair values:

Particulars	Carrying amount			Fair value
	As at	As at	As at	As at
	March 31, 2021	March 31, 2020	March 31, 2021	March 31, 2020
Financial assets
Amortised Cost
Investment in Debentures	0.02	0.02	0.02	0.02
Investment in Government Securities	(`23,000/-) \| ( 23,000/-)<br>`	(`23,000/-) \| ( 23,000/-)<br>`
Total	0.02	0.02	0.02	0.02
Financial liabilities
Amortised Cost
Borrowings	1,913.78	2,312.68	1,913.78	2,310.26
Total	1,913.78	2,312.68	1,913.78	2,310.26

The management assessed that the fair values of cash and cash equivalents, other bank balances, loans, trade receivables, other current financial assets, trade payables and other current financial liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values. The fair value of borrowings is calculated by discounting future cash flows using rates currently available for debts on similar terms, credit risk and remaining maturities.

For financial assets and financial liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

(b) Fair value hierarchy

The following table provides the fair value measurement hierarchy of the Company's assets and liabilities.

Quantitative disclosures fair value measurement hierarchy for assets as at March 31, 2021 and March 31, 2020

Particulars			Fair value measurement using
	Total	Quoted prices in active markets (Level 1)	Significant observable inputs (Level 2)	Significant unobservable inputs (Level 3)
As at March 31, 2021
Assets measured at fair value
Fair value through Other Comprehensive Income
Investment in Equity shares	2.10	-	-	2.10
Foreign exchange forward contracts (Cash flow hedge)	23.76	-	23.76	-
As at March 31, 2020 Assets measured at fair value Fair value through Other Comprehensive Income
Investment in Equity shares	2.10	-	-	2.10
Foreign exchange forward contracts (Cash flow hedge)	0.03	-	0.03	-

Quantitative disclosures fair value measurement hierarchy for financial liabilities as at March 31, 2021 and March 31, 2020

Particulars		Fair value measurement using
	Total	Quoted prices in active markets (Level 1)	Significant observable inputs (Level 2)	Significant unobservable inputs (Level 3)
As at March 31, 2021
Liabilities measured at fair value
Financial guarantee contract	1.34	-	-	1.34
As at March 31, 2020
Liabilities measured at fair value
Financial guarantee contract	1.51	-	-	1.51

2020 - 2021

Note 41 : Fair value disclosures for financial assets and financial liabilities: (Contd.)

Fair value hierarchy

Level 1: Level 1 hierarchy includes financial instruments 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.

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.

(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 and on the refinancing of fixed rate debt. 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 and US dollars 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, 2021, approximately 3.84% of the Company's Borrowings are at fixed rate of interest (March 31, 2020 : 8.94%).

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:

Particulars		Effect on profit before tax
	March 31, 2021	March 31, 2020
Increase in 50 basis points	(9.20)	(10.53)
Decrease in 50 basis points	9.20	10.53

(a2) Foreign currency risk

The Company's foreign currency risk arises from its foreign operations, investments in foreign subsidiaries, 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, foreign exchange options or currency swaps 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.

Notes to the Standalone Financial Statement

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.

Particulars	Change in		Effect on profit before tax
	Currency rate	in USD rate	in EURO rate
March 31, 2021	+2%	3.35	0.01
	-2%	(3.35)	(0.01)
March 31, 2020	+2%	3.07	0.18
	-2%	(3.07)	(0.18)

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, 2021 and March 31, 2020.

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.

(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..

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

The table below summarises the maturity profile of the Company's financial liabilities based on contractual undiscounted payments:

Particulars	< 1 year	>1 year but < 3 years	>3 year but < 5 years	more than 5 years	Total
Year ended March 31, 2021
Interest bearing borrowings*	703.33	807.76	446.73	14.08	1,971.90
Lease liabilities	17.62	26.47	15.33	12.23	71.65
Trade payables	1,322.40	-	-	-	1,322.40
Other financial liabilities#	337.34	8.67	0.56	0.14	346.71
	2,380.69	842.90	462.62	26.45	3,712.66
Year ended March 31, 2020
Interest bearing borrowings*	1,216.45	775.23	266.91	72.86	2,331.45
Lease liabilities	26.30	43.43	28.33	19.94	118.00
Trade payables	1,118.31	-	-	-	1,118.31
Other financial liabilities#	422.87	0.41	0.50	0.43	424.21
	2,783.93	819.07	295.74	93.23	3,991.97

* 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 of 8.95 Crores (March 31, 2020 : `19.14 Crores). interest accrued and due`

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.

Particulars	As at	As at
	March 31, 2021	March 31, 2020
(a) Interest bearing loans and borrowings (note 14)	1,913.78	2,312.68
(b) Less: cash and bank balance (including other bank balance and book overdraft)	(17.95)	(28.72)
(c) Net debt (a) - (b)	1,895.83	2,283.96
(d) Equity share capital (note 12)	258.92	258.77
(e) Other equity (note 13)	2,682.08	2,594.92
(f) Total capital (d) + (e)	2,941.00	2,853.69
(g) Total capital and net debt (c) + (f)	4,836.83	5,137.65
(h) Gearing ratio (c)/(g)	39.20%	44.46%

In order to achieve this overall objective, the Company's capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any long term borrowing in the current period except for one loan. The Company has obtained letter from the lender before the date of adoption of financial statements for not accelerating the payment of this loan within one year from the balance sheet date subject to regularisation of the breach by end of March 31, 2022. Accordingly, the management has considered the classification of loan based upon the original repayment schedule.

No changes were made in the objectives, policies or processes for managing capital during the current period.

2020 - 2021

` in Crores

Note 44 : COVID - 19

World Health Organisation (WHO) declared outbreak of Coronavirus Disease (COVID-19) a global pandemic on March 11, 2020. Consequent to this, Government of India declared lockdown on March 23, 2020 and the Company temporarily suspended the operations in all the units of the Company in compliance with the lockdown instructions issued by the Central and State Governments. COVID-19 has substantially impacted the normal business operations of the Company by way of interruption in production, supply chain disruption, unavailability of personnel, closure/lock down of production facilities etc. during the lock-down period which has been extended till May 17, 2020. Production and supply of goods has commenced at various dates during the month of May 2020 and in a staggered manner during the year at some of the manufacturing locations of the Company after obtaining permissions from the appropriate government authorities. The Company has witnessed significant improvement in its operations during the second half of the year. Nearer to the year end, the operations of the Company were affected by the impact of the second wave of COVID-19 pandemic.

The situation is changing rapidly giving rise to inherent uncertainty around the extent and timing of the potential future impact of the COVID-19 on revenue from operations, profitability, recoverability of Property Plant and Equipment, investments and trade receivables.

The Company has made detailed assessment of its liquidity position for the next 12 months, recoverability of its assets comprising of Property Plant and Equipment, Intangible assets, investments, inventories and trade receivables. Based on current indicators of future economic conditions and estimates made by the Management of the Company, the Company expects to recover the carrying amount of these assets.

As a result of the growing uncertainties with respect to COVID-19, the impact of this pandemic may be different from that estimated as at the date of approval of these financial results. The Company will continue to closely monitor any material changes to future economic conditions.

Note 45 : Business Combinations

The company has acquired the Leasing division of "Amol Minechem Limited (formerly known as Amol Dicalite Limited)" w.e.f. November 8, 2019 at a consideration of 9.75 crores and the Weaving division of "Anveshan Textile Limited" w.e.f March 31, 2020 at a consideration of 1.00 crores. Value of net assets acquired is determined at 9.75 crores for Amol Minechem Limited and Value of net assets acquired is determined at 1.00 crores for Anveshan Textile Limited, consequently no goodwill has been recognized for both the acquisitions in accordance with Ind AS 103 – "Business Combination".

Amol Minechem Limited was engaged in the business of leasing of assets and Anveshan Textile Limited was engaged in the business of the Weaving Jobwork.

Based on the fair value of the assets acquired the purchase price paid has been allocated among various assets as below:

Amol Minechem	Anveshan Textile	Total
Limited	Limited

9.17	42.13	51.30
0.99	1.53	2.52
10.16	43.66	53.82

-	0.25	0.25
0.41	42.41	42.82
0.41	42.66	43.07
9.75	1.00	10.75

Notes to the Standalone Financial Statement

Note 46 :Expenditure on Research and Development

The Company has separate in-house Research and Development Centre at Naroda, Santej, Khatraj and Pune locations. All Centers are involved into new products development, new process development etc. and out of four locations, Naroda, Santej and Khatraj are duly recognized and approved by Department of Scientific and Industrial Research, Ministry of Science and Technology, Government of India. The details of Capital and Revenue expenditure incurred on Research and Development by all Centres are as under:

Particulars	Year ended March 31, 2021	Year ended March 31, 2020
Naroda Centre
Capital expenditure	-	-
Revenue expenditure	2.82	3.68
Total expenditure at Naroda Centre	2.82	3.68
Santej Centre
Capital expenditure	-	3.19
Revenue expenditure	12.67	22.43
Total expenditure at Santej Centre	12.67	25.62
Khatraj Centre
Capital expenditure	-	0.80
Revenue expenditure	1.27	1.58
Total expenditure at Khatraj Centre	1.27	2.38
Pune Centre
Capital expenditure	-	-
Revenue expenditure	1.21	1.59
Total expenditure at Pune Centre	1.21	1.59
Total	17.97	33.27

Note 47 : 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. As of May 26, 2021, there were no subsequent events and transactions to be recognized or reported that are not already disclosed.

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

Sanjay S. Lalbhai Jayesh K. Shah DIN: 00008329 DIN: 00008349

Chairman & Managing Director Director & Chief Financial Officer

R. V. Bhimani Company Secretary

Place: Date: Ahmedabad May 26, 2021

TO THE MEMBERS OF ARVIND LIMITED

Report on the Audit of the Consolidated Financial Statements

Opinion

We have audited the accompanying consolidated financial statements of Arvind Limited ("the Parent") and its subsidiaries, (the Parent and its subsidiaries together referred to as "the Group") which includes Group's share of loss in its joint ventures, which comprise the Consolidated Balance Sheet as at March 2021, and the Consolidated Statement of Profit and Loss (including Other Comprehensive Income), the Consolidated Statement of Cash Flows and the Consolidated Statement of Changes in Equity for the year then ended, and a summary of significant accounting policies and other explanatory information. 31,

In our opinion and to the best of our information and according to the explanations given to us, and accordingly explanation given to us, and based on the reports of other auditors on separate financial statements of subsidiaries and joint ventures referred to in the Other Matters section below, the aforesaid consolidated financial statements give the information required by the Companies Act, 2013 ("the Act") in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended ('Ind AS'), and other accounting principles generally accepted in India, of the consolidated state of affairs of the Group as at , and their consolidated loss, their consolidated total comprehensive loss, their consolidated cash flows and their consolidated changes in equity for the year ended on that date. March 31, 2021

Basis for Opinion

We conducted our audit of the consolidated financial statements in accordance with the Standards on Auditing specified under section 143 (10) of the Act (SAs). Our responsibilities under those Standards are further described in the Auditor's Responsibility for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group, and its joint ventures in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the ethical requirements that are relevant to our audit of the consolidated financial statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI's Code of Ethics. We believe that the audit evidence obtained by us and the audit evidence obtained by the other auditors in terms of their reports referred to in the sub-paragraphs (a) and (b) of the Other Matters section below, is sufficient and appropriate to provide a basis for our audit opinion on the consolidated financial statements.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.

Sr. No.	Key Audit Matter Description	How the key Audit Matter Was Addressed in the Audit
1	Revenue recognition – cut	Principal Audit Procedures
	off Revenue is one of the key profit dri v e rs a nd is t h e re fore susceptible to misstatement. Cut-off is the key assertion in so far as revenue recognition is concerned. There is a risk that revenue is recognized on sale of goods around the year end without substantial transfer of control and is not in accordance with Ind AS-115 "Revenue from Contracts with Customers".	performed: Our audit process consisted testing of the design and operating effectiveness of the i n t e r n a l c o n t r o l s a n d substantive testing performed by us and by the Component auditor are as follows: • W e o b t a i n e d a n understanding of process and evaluated the design, i m p l e m e n t a t i o n a n d operating effectiveness of management's internal controls in relation to revenue recognition from sale of goods. We tested the Company's control over t i m i n g o f r e v e n u e recognition around year end. • At the year end, we have performed the cut off testing for late cut off to test that the revenue is recorded in the appropriate period. We have traced sales with proof of delivery (POD) to confirm the recognition of sales. For above procedure Group auditor have enquired from the Component auditor for the process followed by them and relied upon the testing carried by Component auditor for Components audited by them.

Information Other than the Financial Statements and Auditor's Report Thereon

The Parent's Board of Directors is responsible for the other information. The other information comprises the information included in the Director's report of even date and annexures thereof, but does not include the consolidated financial statements, standalone financial statements and our auditor's report thereon.

• Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information, compare with the financial statements of the subsidiaries and joint ventures audited by the other auditors, to the extent it relates to these entities and, in doing so, place reliance on the work of the other auditors and consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated. Other information so far as it relates to the subsidiaries and joint ventures, is traced from their financial statements audited by the other auditors.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Management's Responsibility for the Consolidated Financial Statements

The Parent's Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these consolidated financial statements that give a true and fair view of the consolidated financial position, consolidated financial performance including other comprehensive income, consolidated cash flows and consolidated changes in equity of the Group including its joint ventures in accordance with the Ind AS and other accounting principles generally accepted in India. The respective Board of Directors of the companies included in the Group and of its joint ventures are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Group and its joint ventures and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error, which have been used for the purpose of preparation of the consolidated financial statements by the Directors of the Parent, as aforesaid.

In preparing the consolidated financial statements, the respective Board of Directors of the companies included in the Group and of its joint ventures are responsible for assessing the ability of the respective entities to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the respective Board of Directors either intends to liquidate their respective entities or to cease operations, or has no realistic alternative but to do so.

The respective Board of Directors of the companies included in the Group and of its joint ventures are also responsible for overseeing the financial reporting process of the Group and of its joint ventures.

Auditor's Responsibility for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the

consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal financial control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Parent has adequate internal financial controls system in place and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management.
Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the Group and its joint ventures to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group and its joint ventures to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group and its joint ventures to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the audit of the financial statements of such entities or business activities

included in the consolidated financial statements of which we are the independent auditors. For the other entities or business activities included in the consolidated financial statements, which have been audited by the other auditors, such other auditors remain responsible for the direction, supervision and performance of the audits carried out by them. We remain solely responsible for our audit opinion.

Materiality is the magnitude of misstatements in the consolidated financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the consolidated financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the consolidated financial statements.

We communicate with those charged with governance of the Parent and such other entities included in the consolidated financial statements of which we are the independent auditors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Other Matters

(a) We did not audit the financial statements of 16 subsidiaries, whose financial statements reflect total assets of 1112.49 crore as at March 31, 2021, total revenues of 691.89 crore and net cash outflows amounting to 11.08 crore for the year ended on that date, as considered in the consolidated financial statements. The Consolidated financial statements also include the group's share of net profit of 0.84 crore for the year ended on that date, as considered in the consolidated financial statements in respect of 2 joint ventures, whose financial statements have not been audited by us. These financial have been audited by other auditors whose reports have been furnished to us by the Management and our opinion on the consolidated financial statements, in so far as it relates to the amounts and disclosures included in respect of these subsidiaries and joint ventures, and our report in terms of subsection (3) of Section 143 of the Act, in so far as it relates to the aforesaid subsidiaries and joint ventures is based solely on the reports of the other auditors.
(b) We did not audit the financial statements of 8 subsidiaries, whose financial statements reflect total assets of ` 116.08 crores as at

March 31, 2021, total revenues of 119.26 crores and net cash inflows amounting to 0.20 crores for the year ended on that date, as considered in the consolidated financial statements. The consolidated financial statements also include the Group's share of net loss of ` 0.42 crores for the year ended March 31, 2021, as considered in the consolidated financial statements, in respect of 4 joint ventures, whose financial statements have not been audited by us. These financial statements are unaudited and have been furnished to us by the Management and our opinion on the consolidated financial statements, in so far as it relates to the amounts and disclosures included in respect of these subsidiaries and joint ventures, is based solely on such unaudited financial statements. In our opinion and according to the information and explanations given to us by the Management, these financial statements are not material to the Group.

Our opinion on the consolidated financial statements above and our report on Other Legal and Regulatory Requirements below, is not modified in respect of the above matters with respect to our reliance on the work done and the reports of the other auditors and the financial statements certified by the Management.

Report on Other Legal and Regulatory Requirements

As required by Section 143(3) of the Act, based on our audit and on the consideration of the reports of the other auditors on the separate financial statements of the subsidiaries and joint ventures referred to in the Other Matters section above we report, to the extent applicable that:

a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit of the aforesaid consolidated financial statements.
b) In our opinion, proper books of account as required by law relating to preparation of the aforesaid consolidated financial statements have been kept so far as it appears from our examination of those books, returns and the reports of the other auditors.
c) The Consolidated Balance Sheet, the Consolidated Statement of Profit and Loss including Other Comprehensive Income, the Consolidated Statement of Cash Flows and the Consolidated Statement of Changes in Equity dealt with by this Report are in agreement with the relevant books of account maintained for the purpose of preparation of the consolidated financial statements.
d) In our opinion, the aforesaid consolidated financial statements comply with the Ind AS specified under Section 133 of the Act.
e) On the basis of the written representations received from the directors of the Parent as on March 31, 2021 taken on record by the Board of Directors of the Company and the reports of the statutory auditors of its subsidiary companies and joint venture companies incorporated in India, none of the directors of the Group companies, its joint venture companies incorporated in India is disqualified as on March 31, 2021 from being appointed as a director in terms of Section 164 (2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting and the operating effectiveness of such controls, refer to our separate Report in "Annexure A" which is based on the auditors' reports of the Parent, subsidiary

2020 - 2021

companies and joint venture companies incorporated in India. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of internal financial controls over financial reporting of those companies.

g) With respect to the other matters to be included in the Auditor's Report in accordance with the requirements of section 197(16) of the Act, as amended, in our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the parent to its directors during the year is in accordance with the provisions of section 197 of the Act.
h) With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended in our opinion and to the best of our information and according to the explanations given to us:
i) The consolidated financial statements disclose the impact of pending litigations on the consolidated financial position of the Group and its joint ventures;
ii) Provision has been made in the consolidated financial statements, as required under the applicable law or

accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts;

iii) There is no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.

Place: Ahmedabad Date: 26 May, 2021

For DELOITTE HASKINS & SELLS LLP

Chartered Accountants (Firm's Registration No. 117366W/W-100018)

Kartikeya Raval

Partner (Membership no. 106189) (UDIN: 21106189AAAAFH4122)

ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1(f) under 'Report on Other Legal and Regulatory Requirements' section of our report of even date)

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")

In conjunction with our audit of the consolidated Ind AS financial statements of the Company as of and for the year ended March 31, 2021, we have audited the internal financial controls over financial reporting of Arvind Limited (hereinafter referred to as "Parent") its subsidiaries and joint ventures, which are companies incorporated in India, as of that date.

Management's Responsibility for Internal Financial Controls

The respective Board of Directors of the Parent, its subsidiary companies and joint ventures, which are companies incorporated in India, are responsible for establishing and maintaining internal financial controls based on reporting criteria established by the respective Companies considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to the respective company's policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the internal financial controls over financial reporting of the Parent, its subsidiary companies and its joint ventures, which are companies incorporated in India, based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") issued by the Institute of Chartered Accountants of India and the Standards on Auditing, prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.

We believe that the audit evidence we have obtained and the audit evidence obtained by the other auditors of the subsidiary companies and joint ventures, which are companies incorporated in India, in terms of their reports referred to in the Other Matters paragraph below, is sufficient and appropriate to provide a basis for our audit opinion on the internal financial controls system over financial reporting of the Parent, its subsidiary companies and its joint ventures, which are companies incorporated in India.

Meaning of Internal Financial Controls Over Financial Reporting A company's internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Opinion

In our opinion to the best of our information and according to the explanations given to us and based on the consideration of the reports of the other auditors referred to in the Other Matters paragraph below, the Parent, its subsidiary companies and joint ventures, which are companies incorporated in India, have, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2021, based on the criteria for internal financial control over financial reporting established by the respective companies considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.

Other Matters

Our aforesaid report under Section 143(3)(i) of the Act on the adequacy and operating effectiveness of the internal financial controls over financial reporting insofar as it relates to 15 subsidiary companies and 2 joint ventures, which are companies incorporated in India, is based solely on the corresponding reports of the auditors of such companies incorporated in India.

Our opinion is not modified in respect of the above matters.

For DELOITTE HASKINS & SELLS LLP

Chartered Accountants (Firm's Registration No. 117366W/W-100018)

Kartikeya Raval Partner Place: Ahmedabad (Membership no. 106189)

Date: 26 May, 2021 (UDIN: 21106189AAAAFH4122)

Consolidated Balance Sheet as at March 31, 2021

			` in Crores
Particulars	Notes	As at	As at
		March 31, 2021	March 31, 2020
ASSETS
Non-current assets
(a) Property, plant and equipment	5	3,405.38	3,530.28
(b) Capital work-in-progress		77.95	112.47
(c) Investment properties	6	22.79	34.37
(d) Goodwill	7	14.59	26.70
(e) Other Intangible assets	7	59.18	96.05
(f) Intangible assets under development		0.40	0.36
(g) Right of Use Assets (h) Financial assets	38	88.56	147.61
(i) Investments	8 (a)	70.28	90.41
(ii) Loans	8 (c)	0.68	0.94
(iii) Other financial assets	8 (f)	35.99	41.33
(i) Deferred tax assets (net)	29	7.80	35.58
(j) Other non-current assets	9	32.52	11.65
Total non-current assets (A)		3,816.12	4,127.75
Current assets
(a) Inventories	10	1,159.85	1,276.83
(b) Financial assets
(i) Trade receivables	8 (b)	1,091.67	1,047.67
(ii) Cash and cash equivalents (iii) Bank balance other than (ii) above	8 (d) 8 (e)	27.12 24.44	50.24 33.84
(iv) Loans	8 (c)	50.16	39.51
(v) Other financial assets	8 (f)	118.48	125.14
(c) Current tax assets (net)	11	22.70	24.22
(d) Other current assets	9	319.45	349.76
Total current assets (B)		2,813.87	2,947.21
Assets classified as held for Sale (C)		90.73	90.48
TOTAL ASSETS (A) + (B) + (C)		6,720.72	7,165.44
EQUITY AND LIABILITIES
Equity
(a) Equity share capital	13	258.92	258.77
(b) Other equity	14	2,460.37	2,449.81
Equity attributable to equity holders of the Parent (c) Non-controlling interest		2,719.29 47.33	2,708.58 57.96
Total equity (A)		2,766.62	2,766.54
LIABILITIES
Non-current liabilities
(a) Financial liabilities
(i) Borrowings	15 (a)	1,141.90	1,018.34
(ii) Lease Liabilities	38	95.20	149.18
(iii) Other financial liabilities	15 (c)	8.55	5.46
(b) Long-term provisions	16	29.98	48.63
(c) Deferred tax liabilities (net) (d) Government grants	29 17	9.64 71.69	27.14 73.12
(e) Other non current liabilities	18	0.89	2.06
Total non-current liabilities (B)		1,357.85	1,323.93
Current liabilities
(a) Financial liabilities
(i) Borrowings	15 (a)	630.74	1,175.15
(ii) Lease Liabilities	38	23.98	35.49
(iii) Trade payables
- Total Outstanding dues of Micro Enterprises and Small Enterprises	15 (b)	38.79	10.64
- Total Outstanding dues other then Micro Enterprises and Small Enterprises	15 (b)	1,361.47	1,249.22
(iv) Other financial liabilities	15 (c)	381.29	460.27
(b) Short-term provisions	16	11.53	16.69
(c) Government grants	17	7.96	7.31
(d) Current tax liabilities (net)	12	0.04	2.31
(e) Other current liabilities Total current liabilities (C)	18	140.45 2,596.25	117.89 3,074.97
TOTAL EQUITY AND LIABILITIES (A) + (B) + (C)		6,720.72	7,165.44

See accompanying notes forming part of the Consolidated financial statements

In terms of our report attached Chartered Accountants

Date: Date: Place: Place:

For Deloitte Haskins & Sells LLP For and on behalf of the board of directors of Arvind Limited

Kartikeya Raval Sanjay S. Lalbhai Jayesh K. Shah DIN: 00008329 DIN: 00008349

Partner Chairman & Managing Director Director & Chief Financial Officer

Company Secretary R. V. Bhimani

Ahmedabad Ahmedabad May 26, 2021 May 26, 2021

Consolidated Statement of profit and loss for the year ended March 31, 2021

			Year ended	` in Crores Year ended
	Particulars	Notes	March 31, 2021	March 31, 2020
I.	INCOME
	(a) Revenue from operations	19	5,072.98	7,369.00
	(b) Other income	20	51.59	55.24
	TOTAL INCOME		5,124.57	7,424.24
II.	EXPENSES
	(a) Cost of raw materials and accessories consumed	21	2,088.82	3,300.46
	(b) Purchase of stock-in-trade	22	271.81	365.91
	(c) Changes in inventories of finished goods, work-in-progress and stock-in-trade	23	161.64	69.45
	(d) Project expenses		39.86	73.84
	(e) Employee benefits expense	24	696.51	942.24
	(f) Finance costs	25	224.51	236.89
	(g) Depreciation and amortisation expense	26	285.15	290.45
	(h) Other expenses TOTAL EXPENSES	27	1,351.73 5,120.03	1,924.71 7,203.95
III.	PROFIT BEFORE SHARE OF PROFIT/(LOSS) OF A JOINT VENTURE,
	EXCEPTIONAL ITEMS AND TAX (I-II)		4.54	220.29
IV.	Share of profit/(loss) of joint ventures accounted for using the equity method		0.44	(2.29)
V.	PROFIT BEFORE EXCEPTIONAL ITEMS AND TAX (III+IV)		4.98	218.00
VI.	Exceptional items	28	35.89	50.21
VII.	PROFIT/(LOSS) BEFORE TAX (V-VI)		(30.91)	167.79
	VIII. Tax expense	29
	(a) Current tax		11.20	64.67
	(b) Short/(excess) provision related to earlier years		(6.45)	12.01
	(c) Deferred tax (Credit)/ charge		(8.27)	(0.99)
IX.	Total tax expense Profit/(Loss) for the year (VII-VIII)		(3.52) (27.39)	75.69 92.10
X.	Other comprehensive income/(Loss) (net of tax)
A.	Items that will not be reclassified to Profit and Loss
	(i) Remeasurement gain/(loss) of defined benefit plans		23.82	(0.03)
	(ii) Share of Other Comprehensive Income of Joint Venture accounted for using Equity method (net of tax)		(0.02)	-
	(iii) Income tax related to items (i) above		(8.03)	(0.06)
	Net other comprehensive Income/(Loss) not to be reclassified to
	profit or loss in subsequent periods		15.77	(0.09)
B.	Items that will be reclassified to Profit & Loss
	(i) Effective portion of gain/(loss) on cash flow hedges		53.55	(77.75)
	(ii) Income tax related to items no (i) above		(18.72)	27.14
	(iii) Exchange differences in translating the financial statements of a foreign operation		(24.41)	(12.42)
	Net other comprehensive Income/(Loss) that may be reclassified to
	profit or loss in subsequent periods Total other comprehensive Income/(Loss) for the year, net of tax (X) = (A+B)		10.42 26.19	(63.03) (63.12)
XI.	Total comprehensive Income/(Loss) for the year, net of tax (IX+X)		(1.20)	28.98
XII.	Profit/(Loss) for the year attributable to:
	(i) Equity holders of the parent		(16.52)	95.65
	(ii) Non-controlling interest		(10.87)	(3.55)
			(27.39)	92.10
	XIII. Other comprehensive Income/(Loss) attributable to:
	(i) Equity holders of the parent		25.95	(62.95)
	(ii) Non-controlling interest		0.24	(0.17)
			26.19	(63.12)
	XIV. Total comprehensive Income/(Loss) attributable to: (XII+XIII) (i) Equity holders of the parent		9.43	32.70
	(ii) Non-controlling interest		(10.63)	(3.72)
			(1.20)	28.98
XV.	Earning per equity share [nominal value per share `10]	36
	- Basic		(0.64)	3.70
	- Diluted		(0.64)	3.70
	See accompanying notes forming part of the Consolidated financial statements

	In terms of our report attached
	For Deloitte Haskins & Sells LLP		For and on behalf of the board of directors of Arvind Limited
	Chartered Accountants

Place: Ahmedabad Place: Ahmedabad Date: May 26, 2021 Date: May 26, 2021

Kartikeya Raval Sanjay S. Lalbhai Jayesh K. Shah DIN: 00008329 DIN: 00008349

Partner Chairman & Managing Director Director & Chief Financial Officer

R. V. Bhimani Company Secretary

Consolidated Statement of cash flows for the year ended March 31, 2021

Consolidated Statement of cash flows		for the year ended March 31, 2021
	Year ended March 31, 2021	Year ended March 31, 2020	` in Crores
Particulars A Cash Flow from Operating activities
Profit After taxation	(27.39)		92.10
Adjustments to reconcile profit after tax to net cash flows:
Share of profit from Joint Ventures	(0.44)	2.29
Depreciation and Amortization expense	285.15	290.45
Interest Income	(5.64)	(19.31)
Tax Expense/(Credit)	(3.52)	75.69
Finance Costs	224.51	236.89
Bad Debts Written Off	4.90	5.44
Allowances for doubtful receivables	0.11	9.90
Allowance for doubtful advances	0.09	-
Sundry Advances written off	0.25	1.27
Sundry Debit Written off	0.42	0.01
Provision for Non moving inventory	44.99	51.71
Foreign Exchange Loss / (Gain)	5.31	(9.05)
Property, plant and equipment Write off	-	0.21
(Profit)/Loss on Sale of Property, plant and equipment	(8.93)	2.38
Excess Provision Written Back Share based payment expense	(1.44) 1.12	(0.48) 1.13
Government grant income	(7.66)	(6.83)
(Profit)/Loss of Mark to market of derivative financial instruments	(10.26)	11.40
Provision of diminution in value of investments and
share application money	19.85	11.82
Impairment in Goodwill	13.18	-
Reversal of Excise Duty Provision	-	(4.95)
	561.99		659.97
Operating Profit before Working Capital Changes	534.60		752.07
Adjustments for Changes in Working Capital:
(Increase) / Decrease in Inventories	80.05	291.15
(Increase) / Decrease in trade receivables (Increase) / Decrease in other financial assets	(55.64) 31.42	(156.34) (24.76)
(Increase) / Decrease in other assets	30.23	93.18
Increase / (Decrease) in trade payables	141.72	(94.10)
Increase / (Decrease) in other financial liabilities	6.20	(14.10)
Increase / (Decrease) in other liabilities	21.39	40.90
Increase / (Decrease) in provisions	0.01	2.69
Net Changes in Working Capital	255.38		138.62
Cash Generated from Operations	789.98		890.69
Direct Taxes paid (Net of Tax refund)	(13.70)		(30.22)
Net Cash Flow from Operating Activities ( A )	776.28		860.47
B Cash Flow from Investing Activities Purchase of Property, plant and equipment and intangible assets	(115.86)	(414.62)
Proceeds from disposal of Property, plant and equipment and
intangible assets	26.85	17.84
Purchase of Investments	-	(25.35)
Payment towards acquisition of Non-Controling Interest	-	(11.82)
Changes in Non Controlling interest	-	2.51
Changes in other bank balances not considered as cash and
cash equivalents	8.94	(23.68)
Loans Repaid/ (Given) (Net)	(10.39)	123.88
Interest Received	9.36	25.61
Net cash flow from/(used in) Investing Activities ( B )	(81.10)		(305.63)

Consolidated Statement of cash flows forthe year endedMarch 31, 2021(Contd.)

			` in Crores
--	--	--	-------------

	Particulars	Year ended March 31, 2021	Year ended March 31, 2020
C	Cash Flow from Financing Activities
	Proceeds from Issue of Share Capital	0.15	0.86
	Dividend Paid (including Dividend Distribution Tax)	-	(62.29)
	Proceeds from long term Borrowings	663.76	480.11
	Repayment of long term Borrowings	(572.63)	(298.31)
	Proceeds/(Repayment) from Short term borrowings (Net)	(544.41)	(426.22)
	Repayment towards lease liabilities	(30.17)	(39.43)
	Interest Paid	(233.46)	(229.41)
	Net Cash flow from / (used in) Financing Activities ( C )	(716.76)		(574.69)
	Net Increase/(Decrease)
	in cash & cash equivalents ( A )+( B )+( C )	(21.58)		(19.85)
	Cash & Cash equivalent at the beginning of the year	47.06		66.91
	Cash & Cash equivalent at the end of the year	25.48		47.06

Reconciliation of cash and cash equivalents

Particulars	Year ended	Year ended
	March 31, 2021	March 31, 2020
Cash and cash equivalents :
Cash on Hand	0.21	0.28
Cheques on hand	-	3.77
Balances with Banks	26.91	46.19
Cash and cash equivalents as per Balance Sheet (Refer note 8 (d))	27.12	50.24
Book Overdrafts (Refer note 15 (c))	(1.64)	(3.18)
Cash and cash equivalents as per Cash flow Statement	25.48	47.06

See the accompanying notes to the consolidated financial statements.

Disclosure under Para 44A as set out in Ind AS 7 on cash flow statements under Companies (Indian Accounting Standards) Rules, 2015 (as amended)

	Note	As at	Net		Non Cash Changes		As at
Particulars of liabilities arising from financing activity	No.	March 31, 2020	cash flows	Other changes *	Impact due to IndAS 116	Fair value adjustment on interest free inter corpo rate deposits	March 31, 2021
Borrowings :
Long term borrowings	15 (a)	1,280.28	91.13	-	-	-	1,371.41
Short term borrowings	15 (a)	1,175.15	(544.41)	-	-	-	630.74
Interest accrued on borrowings	15 (c)	19.31	(19.31)	10.36	-	-	10.36
Lease Liabilities	38	184.67	(44.02)	-	(21.47)	-	119.18
Total		2,659.41	(516.61)	10.36	(21.47)	-	2,131.69

* The same relates to amount charged in statement of profit and loss accounts.

1 The cash flow statement has been prepared under the indirect method as set out in Indian Accounting Standard (Ind AS 7) statement of cash flows.

In terms of our report attached For Deloitte Haskins & Sells LLP Chartered Accountants

Kartikeya Raval Partner

Date: Place: Place:

For and on behalf of the board of directors of Arvind Limited Sanjay S. Lalbhai Jayesh K. Shah DIN: 00008329 DIN: 00008349

Chairman & Managing Director Director & Chief Financial Officer

Company Secretary Ahmedabad Ahmedabad R. V. Bhimani May 26, 2021 Date: May 26, 2021

Notes:

A.Equity share capital													` inCrores
Particulars		Balance atthe beginning ofthe	Changes in Equity	Share Capital		Balance atthe end ofthe
March 31, 2020 Forthe year ended		year 258.62 reporting		during the year 0.15		reporting	year 258.77
March 31, 2021 Forthe year ended		258.77		0.15		258.92
Other equity B.
		Reserves and Surplus attributable to the owners ofthe Company							Comprehensive Income Items of Other
Particulars	Reserve Capital	payment Capital Reserve	Amalg amation Reserve Share based	Debenture Redem ption	Capital Rede mption	Securities premium	Earnings Retained General Reserve	portion of Effective gain or	Foreign Currency Translation	Net gain / (loss) on FVOCI	Other Equity Total	rolling Non cont	equity Total A + B ) (

176

Consolidated Statement of changes in equity for the year ended March 31, 2021

					Reserves and Surplus attributable to the owners ofthe Company						Comprehensive Income Items of Other
Particulars	Capital Reserve	Reserve Consoli Capital on dation	payment Share based reserve	Amalg amation Reserve	Debenture Redem ption Reserve	Capital Rede mption Reserve	Securities premium	General Reserve	Earnings Retained	portion of gain or Effective loss on cash flow hedges	Foreign Currency Translation Reserve	equity instru ments Net gain / (loss) on FVOCI	Other Equity Total A ) (	rolling Non cont interest B ) (	equity Total A + B ) (
Balance as at April1, 2019	17.16	1.50	12.37	34.54	50.00	69.50	564.77		1.47 1,750.77	24.14	(34.89)	0.49	2,491.82	86.32	2,578.14
Profitforthe year	-		-	-	-	-	-	-	95.65	-	-	-	95.65	(3.55)	92.10
Other comprehensive income forthe year	-		-	-	-	-	-	-	0.08	(50.61)	(12.42)	-	(62.95)	(0.17)	(63.12)
Total Comprehensive income for the year	-	-	-	-	-	-	-	-	95.73	(50.61)	(12.42)	-	32.70	(3.72)	28.98
Less:Dividend Paid during the year	-	-	-	-	-	-	-	-	(51.75)	-	-	-	(51.75)	-	(51.75)
Less:Dividend distribution tax onDividend paid	-	-	-	-	-	-	-	-	(10.54)	-	-	-	(10.54)	-	(10.54)
Add /(Less):Movement betweenNon-Controling
Interest and Equity holders ofthe parent	-	-	-	-	-	-	-	-	14.51	-	-	-	14.51	(18.83)	(4.32)
Less: IndAS 116 transitionAdjustment(Refer note 38)	-	-	-	-	-	-	-	-	(34.83)	-	-	-	(34.83)	-	(34.83)
Add :Deferred Tax on IndAS 116 transition
Adjustment (Refer note 38)	-	-	-	-	-	-	-	-	11.25	-	-	-	11.25	-	11.25
Add: Issue of Shares under Employee StockOption Scheme	-	-	1.13	-	-	-	0.71	-	-	-	-	-	1.84	(5.81)	(3.97)
Less:Utilized during the year	-	-	-	-	-	-	(5.19)	-	-	-	-	-	(5.19)	-	(5.19)
Add /(Less): Transferfromshare based paymentreserve	-	-	-	-	-	-	1.72	-	-	-	-	-	1.72	-	1.72
Add /(Less): Transferto securities premium	-	-	(1.72)	-	-	-	-	-	-	-	-	-	(1.72)	-	(1.72)
Balance as at March 31, 2020	17.16	1.50	11.78	34.54	50.00	69.50	562.01		1.47 1,775.14	(26.47)	(47.31)	0.49	2,449.81	57.96	2,507.77
Balance as at April1, 2020	17.16	1.50	11.78	34.54	50.00	69.50	562.01		1.47 1,775.14	(26.47)	(47.31)	0.49	2,449.81	57.96	2,507.77
Profitforthe year	-	-	-	-	-	-	-	-	(16.52)	-	-	-	(16.52)	(10.87)	(27.39)
Other comprehensive income forthe year	-	-	-	-	-	-	-	-	15.53	34.83	(24.41)	-	25.95	0.24	26.19
Total Comprehensive income for the year	-	-	-	-	-	-	-	-	(0.99)	34.83	(24.41)	-	9.43	(10.63)	(1.20)
Add /(Less): TransferfromDebenture Redemption Reserve	-	-	-	-	-	-	-	50.00	-	-	-	-	50.00	-	50.00
Add /(Less): TransfertoGeneral Reserve	-	-	-	-	(50.00)	-	-	-	-	-	-	-	(50.00)	-	(50.00)
Scheme Add: Issue of Shares under Employee StockOption	-	-	1.13	-	-	-	-	-	-	-	-	-	1.13	-	1.13
Add /(Less): Transferfromshare based paymentreserve	-	-	-	-	-	-	1.02	-	-	-	-	-	1.02	-	1.02
Add /(Less): Transferto securities premium	-	-	(1.02)	-	-	-	-	-	-	-	-	-	(1.02)	-	(1.02)
Balance as at March 31, 2021	17.16	1.50	11.89	34.54	-	69.50	563.03		51.47 1,774.15	8.36	(71.72)	0.49	2,460.37	47.33	2,507.70
See accompanying notesforming part ofthe financialstatements In terms of ourreport attached					For and on behalf ofthe board of directors of					Arvind Limited

Ahmedabad Ahmedabad May 26, 2021 Place: Place:

For DeloitteHaskins & Sells LLP

Sanjay S. Lalbhai Jayesh K. Shah R. V. Bhimani

ManagingDirector Director&Chief FinancialOfficer Company Secretary

Chairman&

DIN:00008329 DIN:00008349

CharteredAccountants Kartikeya Raval Partner Date: Date:May 26, 2021

2020 - 2021

Notes to the Consolidated Financial Statements for the year ended March 31, 2021

1. Corporate Information

Arvind Limited ("the Group" or "the Company" or "the Parent Company") is one of India's leading vertically integrated textile companies with the presence of almost eight decades in this industry. It is among the largest denim manufacturers in the world. It also manufactures a range of cotton shirting, denim, knits and bottom weights (Khakis) fabrics and Jeans and Shirts Garments. Arvind Limited also has the presence in Telecom business directly and through subsidiaries and joint venture companies. Also the Group has made foray into Technical Textiles on its own and in joint venture with leading global players. The Company through its subsidiary is also engaged in manufacturing and fabrication of process equipment as well as in water treatment business.

Arvind Limited together with its consolidated subsidiaries is hereinafter referred to as "the Group".

The Group's financial statements have been considered and approved by the Board of Directors at their meeting held on May 26, 2021.

2. Statement of Compliance and Basis of Preparation:

The Consolidated Financial Statements have been prepared on a historical cost convention on the accrual basis except for the certain financial assets and liabilities measured at fair value, the provisions of the Companies Act, 2013 to the extent notified ("the Act").

These Consolidated Financial Statements comprising of Consolidated Balance Sheet, Consolidated Statement of Profit and Loss including other comprehensive income, Consolidated Statement of Changes in Equity and Consolidated Statement of Cash Flows as at March 31, 2021 have been prepared in accordance with Ind AS as prescribed under Section 133 of the Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016.

Rounding of amounts

The Consolidated Financial Statements are presented in Indian Rupee ("INR") and all values are rounded to the nearest crore as per the requirement of Schedule III, except when otherwise indicated. Figures less than ? 50,000, which are required to be shown separately, have been shown actual in brackets.

Principles of Consolidation and equity accounting

The consolidated financial statements incorporate the financial statements of Arvind Limited and its subsidiaries, being the entities that it controls. Control is evidenced where the Group has power over the investee or is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Power is demonstrated through existing rights that give the ability to direct relevant activities, which significantly affect the entity returns.

The financial statements of subsidiaries are prepared for the

same reporting year as the parent company. Where necessary, adjustments are made to the financial statements of subsidiaries to align the accounting policies in line with accounting policies of the Group.

For non-wholly owned subsidiaries, a share of the profit / loss for the financial year and net assets is attributed to the noncontrolling interests as shown in the consolidated statement of profit and loss and consolidated balance sheet.

Changes in the Company's interests in subsidiaries that do not result in a loss of control are accounted for as equity transactions. The carrying amount of the Company's interests and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to owners of the Company.

When the Company loses control of a subsidiary, the profit or loss on disposal is calculated as the difference between (i) the aggregate of the fair value of consideration received and the fair value of any retained interest and (ii) the previous carrying amount of the assets (including goodwill), and liabilities of the subsidiary and any non-controlling interests. Amounts previously recognized in other comprehensive income in relation to the subsidiary are accounted for (i.e., reclassified to profit or loss) in the same manner as would be required if the relevant assets or liabilities were disposed off. The fair value of any investment retained in the former subsidiary at the date when control is lost is regarded as the fair value on initial recognition for subsequent accounting under Ind AS.

Generally, there is a presumption that a majority of voting rights result in control. To support this presumption and when the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including:

The contractual arrangement with the other vote holders of the investee
Rights arising from other contractual arrangements
The Group's voting rights and potential voting rights

The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the year are included in the Consolidated Financial Statements from the date the Group gains control until the date the Group ceases to control the subsidiary.

Profit or loss and each component of other comprehensive income (OCI) are attributed to the equity holders of the parent of the Group and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance.

All intra-group assets and liabilities, equity, income, expenses

including unrealized gain /loss and cash flows relating to transactions between members of the Group are eliminated in full on consolidation.

Joint Ventures

A joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint venture. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require unanimous consent of the parties sharing control.

The Group's investments in joint venture are accounted for using the equity method.

Equity Method

Under equity method, the investment in a joint venture is initially recognised at cost. The carrying amount of the investment is adjusted to recognise changes in the Group's share of net assets of the joint venture since the acquisition date. Goodwill relating to the joint venture is included in the carrying amount of the investment and is not tested for impairment individually.

The Consolidated Statement of Profit and Loss reflects the Group's share of the results of operations of the joint venture. Any change in OCI of those investees is presented as part of the Group's OCI. In addition, when there has been a change recognised directly in the equity of the joint venture, the Group recognises its share of any changes, when applicable, in the statement of changes in equity. Unrealised gains and losses resulting from transactions between the Group and the joint venture are eliminated to the extent of the interest in the joint venture.

The aggregate of the Group's share of profit or loss of joint venture is shown on the face of the Consolidated Statement of Profit and Loss.

The financial statements of the joint venture are prepared for the same reporting period as the Group. When necessary, adjustments are made to bring the accounting policies in line with those of the Group.

After application of the equity method, the Group determines whether it is necessary to recognise an impairment loss on its investment in its joint venture. At each reporting date, the Group determines whether there is objective evidence that the investment in the joint venture is impaired. If there is such evidence, the Group calculates the amount of impairment as the difference between the recoverable amount of the joint venture and its carrying value, and then recognises the loss as 'Share of profit of a joint venture' in the Consolidated Statement of Profit and Loss.

Upon loss of joint control over the joint venture, the Group measures and recognises any retained investment at its fair value. Any difference between the carrying amount of the joint venture upon loss of significant influence or joint control and the fair value of the retained investment and proceeds from disposal is recognised in the statement of profit and loss.

3. Summary of Significant Accounting Policies

3.1. Current versus non-current classification

The Group presents assets and liabilities in the Balance Sheet based on current/non-current classification.

An asset is current when it is:

Expected to be realised or intended to be sold or consumed in the normal operating cycle;
Held primarily for the purpose of trading;
Expected to be realised within twelve months after the reporting period; or
Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is current when:

It is expected to be settled in the normal operating cycle;
It is held primarily for the purpose of trading;
It is due to be settled within twelve months after the reporting period; or
There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

All other liabilities are classified as non-current.

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

Operating cycle

Operating cycle of the Group is the time between the acquisition of assets for processing and their realisation in cash or cash equivalents. As the Group's normal operating cycle is not clearly identifiable, it is assumed to be twelve months.

Non-Current Assets classified as held for sale

The Group classifies non-current assets as held for sale if their carrying amounts will be recovered principally through a sale rather than through continuing use of the assets and actions required to complete such sale indicate that it is unlikely that significant changes to the plan to sell will be made or that the decision to sell will be withdrawn. Also, such assets are classified as held for sale only if the management expects to complete the sale within one year from the date of classification.

Non-current assets classified as held for sale are measured at the lower of their carrying amount and the fair value less cost to sell. Non-current assets are not depreciated or amortized.

3.2. Use of estimates and judgements

The estimates and judgements used in the preparation of the consolidated financial statements are continuously evaluated by the Group and are based on historical experience and various other assumptions and factors (including expectations of future events) that the Group believes to be reasonable under the existing circumstances. Difference between actual results and estimates are recognised in the period in which the results are known / materialised.

Following are significant estimates (for details refer note 4.1)

Taxes
? Useful life of Property, plant and equipment and Intangible Assets
? Provisions and contingencies
Defined benefit plans

3.3. Business combinations and goodwill

Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the consideration transferred measured at acquisition date fair value and the amount of any non-controlling interests in the acquiree. For each business combination, the Group elects whether to measure the non-controlling interests in the acquiree at fair value or at the proportionate share of the acquiree's identifiable net assets.

Acquisition-related costs are expensed as incurred.

At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognised at their acuisition date fair values. For this purpose, the liabilities assumed include contingent liabilities representing present obligation and they are measured at their acquisition fair values irrespective of the fact that outflow of resources embodying economic benefits is not probable. However, the following assets and liabilities acquired in a business combination are measured at the basis indicated below:

Deferred tax assets or liabilities, and the assets or liabilities related to employee benefit arrangements are recognised and measured in accordance with Ind AS 12 Income Tax and Ind AS 19 Employee Benefits respectively.
Liabilities or equity instruments related to share based payment arrangements of the acquiree or share – based payments arrangements of the Group entered into to replace share-based payment arrangements of the acquiree are measured in accordance with Ind AS 102 Share-based Payments at the acquisition date.
Assets (or disposal groups) that are classified as held for sale in accordance with Ind AS 105 Non-current Assets Held for Sale and Discontinued Operations are measured in accordance with that standard.
Reacquired rights are measured at a value determined on the basis of the remaining contractual term of the related contract. Such valuation does not consider potential renewal of the reacquired right.

When the Group acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic circumstances and pertinent conditions as at the acquisition date. This includes the separation of embedded derivatives in host contracts by the acquiree.

Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred and the amount recognised for non-controlling interests, and any previous interest held, over the net identifiable assets acquired and liabilities assumed. If the fair value of the net assets acquired is in excess of the aggregate consideration transferred, the Group re-assesses whether it has correctly identified all of the assets acquired and all of the liabilities assumed and reviews the procedures used to measure the amounts to be recognised at the acquisition date. If the reassessment still results in an excess of the fair value of net assets acquired over the aggregate consideration transferred, then the gain is recognised in OCI and accumulated in equity as capital reserve. However, if there is no clear evidence of bargain purchase, the entity recognises the gain directly in equity as capital reserve, without routing the same through OCI.

After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Group's cash-generating units that are expected to benefit from the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those units.

A cash generating unit to which goodwill has been allocated is tested for impairment annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash generating unit is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro rata based on the carrying amount of each asset in the unit. Any impairment loss for goodwill is recognised in profit or loss. An impairment loss recognised for goodwill is not reversed in subsequent periods.

Where goodwill has been allocated to a cash-generating unit and part of the operation within that unit is disposed of, the goodwill associated with the disposed operation is included in the carrying amount of the operation when determining the gain or loss on disposal. Goodwill disposed in these

circumstances is measured based on the relative values of the disposed operation and the portion of the cash-generating unit retained.

If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the Group reports provisional amounts for the items for which the accounting is incomplete. Those provisional amounts are adjusted through goodwill during the measurement period, or additional assets or liabilities are recognised, to reflect new information obtained about facts and circumstances that existed at the acquisition date that, if known, would have affected the amounts recognized at that date. These adjustments are called as measurement period adjustments. The measurement period does not exceed one year from the acquisition date.

Business Combination under Common Control

A business combination involving entities or businesses under common control is a business combination in which all of the combining entities or businesses are ultimately controlled by the same party or parties both before and after the business combination and the control is not transitory. The transactions between entities under common control are specifically covered by Ind AS 103. Such transactions are accounted for using the pooling-of-interest method. The assets and liabilities of the acquired entity are recognised at their carrying amounts of the parent entity's consolidated financial statements with the exception of certain income tax and deferred tax assets. No adjustments are made to reflect fair values, or recognise any new assets or liabilities. The only adjustments that are made are to harmonise accounting policies. The components of equity of the acquired companies are added to the same components within the Group's equity. The difference, if any, between the amounts recorded as share capital issued plus any additional consideration in the form of cash or other assets and the amount of share capital of the transferor is transferred to other equity and is presented separately from other capital reserves. The Group's shares issued in consideration for the acquired companies are recognized from the moment the acquired companies are included in these financial statements and the financial statements of the commonly controlled entities would be combined, retrospectively, as if the transaction had occurred at the beginning of the earliest reporting period presented.

3.4. Foreign currencies

The Group's functional and presentation currency is Indian Rupee. Transactions in foreign currencies are initially recorded by the Group'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. Differences arising on settlement of such transaction and on translation of monetary assets and liabilities denominated in foreign currencies at yearend exchange rate are recognised in profit or loss. They are deferred in equity if they relate to qualifying cash flow hedges.

For the purpose of consolidation, the assets and liabilities of the Company's foreign operations are translated to Indian rupees at the exchange rate prevailing on the balance sheet date, and the income and expenses at the average rate of exchange for the respective months. Exchange differences arising are recognized as foreign currency translation reserve under equity.

3.5. Fair value measurement

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

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

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

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

Level 1 Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
Level 2 Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.
Level 3 Valuation techniques for which the lowest level

input that is significant to the fair value measurement is unobservable.

For assets and liabilities that are recognised in the Consolidated Financial Statements on a recurring basis, the Group determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

The Group's management determines the policies and procedures for both recurring fair value measurement, such as derivative instruments and for non-recurring measurement, such as asset held for sale.

External valuers are involved for valuation of significant assets, such as properties. Involvement of external valuers is decided upon annually by the management after discussion with and approval by the Group's Audit Committee. Selection criteria include market knowledge, reputation, independence and whether professional standards are maintained. Management decides, after discussions with the Group's external valuers, which valuation techniques and inputs to use for each case.

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

Management, in conjunction with the Group'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 yearly basis.

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

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

Significant accounting judgements, estimates and assumptions
Quantitative disclosures of fair value measurement hierarchy
Property, plant and equipment & Intangible assets measured at fair value on the date of transition
Investment properties
Financial instruments (Including those carried at amortised cost)

3.6. Property, plant and equipment

Property, plant and equipment is stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. Such cost includes the cost of replacing part of the plant and equipment and borrowing costs for long-term construction projects if the recognition criteria are met. When significant parts of Property, plant and equipment are required to be replaced at intervals, the Group recognises such parts as individual assets with specific useful lives and depreciates them accordingly. Likewise, when a major inspection is performed, its cost is recognised in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognised in profit or loss as incurred. The present value of the expected cost for the decommissioning of an asset after its use is included in the cost of the respective asset if the recognition criteria for a provision are met.

The Group adjusts exchange differences arising on translation difference / settlement of long-term foreign currency monetary items outstanding as at March 31, 2016, pertaining to the acquisition of a depreciable asset, to the cost of asset and depreciates the same over the remaining life of the asset.

Capital work-in-progress comprises cost of fixed assets that are not yet installed and ready for their intended use at the balance sheet date.

De-recognition

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the Consolidated Statement of Profit and Loss when the asset is de-recognised.

Depreciation

Depreciation on Plant and Machinery (other than Lab equipment, Power generation plant, Electrical installations, Wind power generation plant and Engineering Equipments), Leasehold Improvements, Furniture & Fixtures, Vehicles and Office Equipments are provided on straight-line basis over the useful lives of the assets as estimated by management based on

the technical assessment of the assets, nature of assets, the estimated usage of assets, the operating condition of the assets, maintenance supports and anticipated technological changes required in the assets. The management estimates the useful lives as follows:

Particulars	Useful Life
Plant and Machinery (other than Lab
equipment, Power generation plant,
Electrical installations, Wind power
generation plant and Engineering
Equipments)	5-20 Years
Leasehold Improvements	5-6 Years
Furniture and Fixtures	6-10 Years
Vehicles	4-8 Years
Office Equipments	3-5 Years

The management believes that the useful life as given above best represent the period over which management expects to use these assets. Hence, the useful lives for these assets are different from the useful lives as prescribed under Part C of Schedule II to the Act.

Depreciation for assets purchased/sold during a period is proportionately charged for the period of use.

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year-end and adjusted prospectively, if appropriate.

3.7. Leases

The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

Group as a lessee

The Group applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. The Group recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets.

i) Right of use assets

The Group recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the lease term. The right of use assets are also subject to impairment.

ii) Lease liabilities

At the commencement date of the lease, the Group recognises lease liabilities measured at the present value of lease payments to be made over the lease term. The lease

payments are fixed payments. In calculating the present value of lease payments, the Group uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset.

iii) Short-term leases and leases of low-value assets

The Group applies the short-term lease recognition exemption to its short-term leases (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption that are considered to be low value. Lease payments on short-term leases and leases of lowvalue assets are recognised as expense on a straight-line basis over the lease term.

Group as a lessor

Leases in which the Group does not transfer substantially all the risks and rewards of ownership of an asset are classified as operating leases. Rental income from operating lease is recognised on a straight-line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised over the lease term on the same basis as rental income. Contingent rents are recognised as revenue in the period in which they are earned.

3.8. Borrowing cost

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the respective asset. Where funds are borrowed specifically to finance a project, the amount capitalised represents the actual borrowing costs incurred. Where surplus funds are available out of money borrowed specifically to finance a project, the income generated from such current investments is deducted from the total capitalized borrowing cost. Where the funds used to finance a project form part of general borrowings, the amount capitalised is calculated using a weighted average of rates applicable to relevant general borrowings of the Group during the year. Capitalisation of borrowing costs is suspended and charged to the statement of profit and loss during the extended periods when the active development on the qualifying assets is interrupted.

All other borrowing costs are expensed in the period in which they occur.

3.10. Investment properties

Property that is held for long-term rental yields or for capital appreciation or both, and that is not occupied by the Group, is classified as Investment property. Investment properties are measured initially at cost, including transaction costs. Subsequent to initial recognition, investment properties are stated at cost less accumulated depreciation and accumulated impairment loss, if any.

The cost includes the cost of replacing parts and borrowing costs for long-term construction projects if the recognition criteria are met. When significant parts of the property are required to be replaced at intervals, the Group depreciates them separately based on their specific useful lives. All other repair and maintenance costs are recognised in profit or loss as incurred.

An investment property is derecognised on disposal or on permanently withdrawal from use or when no future economic benefits are expected from its disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in consolidated Statement of Profit and Loss when the asset is derecognised.

Depreciation on Investment property is provided on the straight line method over useful lives of the assets as prescribed under Part C of Schedule II to the Act.

3.11. Intangible Assets

Intangible Assets that the Group controls and from which it expects future economic benefits are capitalised upon acquisition and measured initially:

for assets acquired in a business combination at fair value on the date of acquisition/grant
for separately acquired assets, at cost comprising the purchase price (including non-refundable taxes) and directly attributable costs to prepare the asset for its intended use.

Revenue expenditure pertaining to research is charged to Consolidated Statement of Profit and Loss. Development costs of products are charged to Consolidated Statement of Profit and Loss unless a product's technological and commercial feasibility has been established, in which case such expenditure is capitalised.

Following initial recognition, Intangible assets are carried at cost less accumulated amortisation and accumulated impairment losses, if any. Internally generated intangible assets, excluding capitalised development costs, are not capitalised and expenditure is recognised in Consolidated Statement of Profit and Loss in the period in which expenditure is incurred.

The useful lives of intangible assets are assessed as finite.

Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in Consolidated Statement of Profit and Loss when the asset is derecognised.

Amortisation

Research and development costs for Website Design

Research costs are expensed as incurred. Development expenditures on an individual project are recognised as an intangible asset when the Group can demonstrate:

The technical feasibility of completing the intangible asset so that the asset will be available for use or sale
Its intention to complete and its ability and intention to use or sell the asset
How the asset will generate future economic benefits
The availability of resources to complete the asset
The ability to measure reliably the expenditure during development

Following initial recognition of the development expenditure as an asset, the asset is carried at cost less any accumulated amortisation and accumulated impairment losses. Amortisation of the asset begins when development is complete and the asset is available for use. It is amortised over the period of expected future benefit. Amortisation expense is recognised in Consolidated Statement of Profit and Loss unless such expenditure forms part of carrying value of another asset.

During the period of development, the asset is tested for impairment annually.

3.12. Inventories

Costs incurred in bringing each product to its present location and condition are accounted for as follows:

Raw materials and accessories: Cost includes cost of purchase and other costs incurred in bringing the inventories to their present location and condition. Cost is determined on weighted average basis.
Finished goods and work in progress: Cost includes cost of direct materials and labour and a proportion of manufacturing overheads based on the normal operating capacity, but excluding borrowing costs. Cost is determined on weighted average basis.
Traded goods: Cost includes cost of purchase and other costs incurred in bringing the inventories to their present location and condition. Cost is determined on weighted average basis.

All other inventories of stores, consumables, project material at site are valued at cost. The stock of waste is valued at net realisable value.

Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.

3.13. Impairment of non-financial assets

The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Group estimates the asset's recoverable amount. An asset's recoverable amount is the higher of an asset's or cash-generating unit's (CGU) fair value less costs to sell and its value in use. It is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets of the Group. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

The Group bases its impairment calculation on detailed budgets and forecasts which are prepared separately for each of the Group's CGU to which the individual assets are allocated. These budgets and forecast calculations are generally covering a period of five years. For longer periods, a long-term growth rate is calculated and applied to project future cash flows after the fifth year.

Impairment losses, including impairment on inventories, are recognised in Consolidated Statement of Profit and Loss in those expense categories consistent with the function of the impaired asset, except for a property previously revalued where the revaluation was taken to other comprehensive income. In this case, the impairment is also recognised in other comprehensive income up to the amount of any previous revaluation.

For assets excluding goodwill, an assessment is made at each reporting date as to whether there is any indication that previously recognised impairment losses may no longer exist or may have decreased. If such indication exists, the Group estimates the asset's or CGU's recoverable amount. A previously recognised impairment loss is reversed only if there has been a change in the assumptions used to determine the asset's recoverable amount since the last impairment loss was recognised. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years. Such reversal is recognised in Consolidated Statement of Profit and Loss unless the asset is carried at a revalued amount, in which case the reversal is treated as a revaluation increase.

3.14. Revenue Recognition

The Group earns revenue primarily from sale of manufactured goods (fabrics, garments and other textile derivatives). It has applied the principles laid down in Ind AS 115 and determined that there is no change required in the existing revenue recognition methodology. In case of sale to domestic customers, most of the sale is made on ex-factory basis and revenue is recognised when the goods are dispatched from the factory gates. In case of export sales, revenue is recognised on shipment date, when performance obligation is met. The Group has considered specific criteria which have been met for each of Group's activities as described below while recognising revenue:

Sale of goods – customer loyalty programme (deferred revenue)

The Group operates a loyalty points programme which allows customers to accumulate points when they purchase the products. The points can be redeemed for free products, subject to a minimum number of points being obtained. Consideration received is allocated between the product sold and the points issued, with the consideration allocated to the points equal to their fair value. Fair value of the points is determined by applying a statistical analysis. The fair value of the points issued is deferred and recognised as revenue when the points are redeemed.

Rendering of services

Revenue from services are recognized based on the services rendered in accordance with the terms of contracts on the basis of work performed.

Construction contract

Revenue in respect of projects for Construction of Plants and Systems, is recognised based on satisfaction of performance obligation over the period of time on the basis of percentage of completion method. Percentage of completion is determined by the proportion that contract costs incurred for work done till date bears to the estimated total contract cost. Contract revenue earned in excess of billing has been reflected under the head "Other Current Assets" and billing in excess of contract revenue has been reflected under the head "Other Current

Liabilities" in the balance sheet. Full provision is made for any loss in the year in which it is first foreseen and cost incurred towards future contract activity is classified as project work in progress. Determination of revenues under the percentage of completion method necessarily involves making estimates by the Group, some of which are of a technical nature, relating to the percentage of completion, costs to completion, expected revenue from the contract and the foreseeable losses to completion.

Export Incentive

Export incentives under various schemes notified by government are accounted for in the year of exports based on eligibility and when there is no uncertainty in receiving the same.

Interest Income

Interest income from debt instruments are recorded using the effective interest rate (EIR) and accrued on timely basis. The EIR is the rate that exactly discounts the estimated future cash receipts over the expected life of the financial instrument or a shorter period, where appropriate, to the net carrying amount of the financial asset. When calculating the effective interest rate, the Group estimates the expected cash flows by considering all the contractual terms of the financial instrument (for example, prepayment, extension, call and similar options) but does not consider the expected credit losses. Interest income is included in other income in the statement of profit or loss.

Dividend Income

Dividend income from investments is recognised when the Group's right to receive is established which generally occurs when the shareholders approve the dividend.

Profit or loss on sale of Investments

Profit or Loss on sale of investments are recorded on transfer of title from the Group, and is determined as the difference between the sale price and carrying value of investment and other incidental expenses.

Rental income

Insurance claims

Insurance claims are accounted for to the extent the Group is reasonably certain of their ultimate collection.

3.15. Financial instruments – initial recognition and subsequent measurement

Financial assets and financial liabilities are recognised when a Group becomes a party to the contractual provisions of the instruments. For recognition and measurement of financial assets and financial liabilities, refer policy as mentioned below:

Initial recognition of financial assets and financial liabilities:

Subsequent measurement of financial assets:

For purposes of subsequent measurement, financial assets are classified in four categories:

(a) Financial assets at amortised cost
(b) Financial assets at fair value through other comprehensive income (FVTOCI)
(c) Financial assets at fair value through profit or loss (FVTPL)
(d) Equity instruments measured at fair value through other comprehensive income (FVTOCI)

(a) Financial assets at amortised cost:

This category is the most relevant to the Group. After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included in finance income in the profit or loss.

(b) Financial assets at fair value through other comprehensive income

Financial assets included within the FVTOCI category are measured at each reporting date at fair value. Fair value movements are recognized in the other comprehensive income (OCI). However, the Group recognizes interest income, impairment losses & reversals and foreign exchange gain or loss in Consolidated Statement of Profit and Loss. On derecognition of the asset, cumulative gain or loss previously recognised in OCI is reclassified from the equity to P&L. Interest earned whilst holding FVTOCI financial asset is reported as interest income using the EIR method.

(c) Financial assets at fair value through profit or loss

The Group may elect to designate a financial asset, which otherwise meets amortized cost or fair value through other comprehensive income criteria, as at fair value through profit or loss. However, such election is allowed only if doing so reduces or eliminates a measurement or recognition inconsistency (referred to as 'accounting mismatch'). The Group has not designated any debt instrument as at FVTPL.

(d) Equity instruments:

All equity investments in scope of Ind-AS 109 other than Investment in subsidiaries, Joint Ventures and Associates are measured at fair value. Equity instruments which are held for trading, are classified as at FVTPL. For all other equity instruments, the Group may make an irrevocable election to present in other comprehensive income subsequent changes in the fair value. The Group makes such election on an instrument-by-instrument basis. The classification is made on initial recognition and is irrevocable.

Equity Investment in subsidiaries, Joint Ventures and Associates are measured at cost as per Ind AS 27 - Separate Financial Statements.

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

Impairment of financial assets

The Group assesses at each reporting date whether a financial asset (or a group of financial assets) such as investments, trade receivables, advances and security deposits held at amortised cost and financial assets that are measured at fair value through other comprehensive income are tested for impairment based on evidence or information that is available without undue cost or effort. Expected credit losses (ECL) are assessed and loss allowances recognised if the credit quality of the financial asset has deteriorated significantly since initial recognition.

Derecognition of financial assets

Financial assets are derecognised when the right to receive cash flows from the assets has expired, or has been transferred, and the Group has transferred substantially all of the risks and rewards of ownership.

Concomitantly, if the asset is one that is measured at:

(a) amortised cost, the gain or loss is recognised in Consolidated Statement of Profit and Loss;
(b) fair value through other comprehensive income, the cumulative fair value adjustments previously taken to reserves are reclassified to Consolidated Statement of Profit and Loss unless the asset represents an equity investment in which case the cumulative fair value adjustments previously taken to reserves is reclassified within equity.

Reclassification

When and only when the business model is changed, the Group shall reclassify all affected financial assets prospectively from the reclassification date as subsequently measured at amortised cost, fair value through other comprehensive income, fair value through profit or loss without restating the previously recognised gains, losses or interest and in terms of the reclassification principles laid down in the Ind AS relating to Financial Instruments.

Financial liabilities and equity instruments

Classification as debt or equity

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

Financial liabilities

All financial liabilities are subsequently measured at amortised cost using the effective interest method.

Financial liabilities at fair value through profit or loss

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

Gains or losses on liabilities held for trading are recognised in the profit or loss.

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated at the initial date of recognition, and only if the criteria in Ind-AS 109 are satisfied. For liabilities designated as FVTPL, fair value gains/ losses attributable to changes in own credit risks are recognized in OCI. These gains/ loss are not subsequently transferred to Statement of Profit or Loss. However, the Group may transfer the cumulative gain or loss within equity. All other changes in fair

value of such liability are recognised in the statement of profit or loss. The Group has not designated any financial liability as at fair value through profit and loss.

Equity instruments

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

Financial guarantee contracts

Financial guarantee contracts issued by a Group are initially measured at their fair values and, if not designated as at FVTPL, are subsequently measured at the higher of:

the amount of loss allowance determined in accordance with impairment requirements of Ind AS 109; and
the amount initially recognised less, when appropriate, the cumulative amount of income recognised in accordance with the principles of Ind AS 18.

Derecognition of financial liabilities

The Group derecognises financial liabilities when, and only when, the Group's obligations are discharged, cancelled or have expired. An exchange with a lender of debt instruments with substantially different terms is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. Similarly, a substantial modification of the terms of an existing financial liability (whether or not attributable to the financial difficulty of the debtor) is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable is recognised in the statement of profit and loss.

Offsetting Financial Instruments

Derivatives and Hedge Accounting

Derivatives are initially recognised at fair value and are subsequently re-measured to their fair value at the end of each reporting period. The resulting gains / losses is recognised in Consolidated Statement of Profit and Loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of recognition in profit or loss / inclusion in the initial cost of non-financial asset depends on the nature of the hedging relationship and the nature of the hedged item.

The Group complies with the principles of hedge accounting where derivative contracts are designated as hedge instruments. At the inception of the hedge relationship, the Group documents the relationship between the hedge instrument and the hedged item, along with the risk management objectives and its strategy for undertaking hedge transaction, which can be a fair value hedge or a cash flow hedge.

(i) Fair value hedges

Changes in fair value of the designated portion of derivatives that qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk. The change in the fair value of the designated portion of hedging instrument and the change in fair value of the hedged item attributable to the hedged risk are recognised in Consolidated Statement of Profit and Loss in the line item relating to the hedged item.

(ii) Cash flow hedges

Amounts previously recognised and accumulated in other comprehensive income are reclassified to profit or loss when the hedged item affects Consolidated Statement of Profit and Loss. However, when the hedged item results in the recognition of a non-financial asset, such gains / losses are transferred from equity (but not as reclassification adjustment) and included in the initial measurement cost of the non-financial asset.

3.16. Cash and cash equivalent

For the purpose of the cash flows statement, cash and cash

equivalents includes cash, short-term deposits, as defined above, other short-term and highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value adjusted for outstanding bank overdrafts as they are considered an integral part of the Group's cash management. Bank Overdrafts are shown within Borrowings in current liabilities in the balance sheet.

3.17. Government Grants

When the Group receives grants of non-monetary assets, the asset and the grant are recorded at fair value amounts and released to profit or loss over the expected useful life in a pattern of consumption of the benefit of the underlying asset by equal annual instalments.

3.18. Taxes

Tax expense comprises of current income tax and deferred tax.

Current income tax:

The tax currently payable is based on taxable profit for the year. Taxable profit differs from 'profit before tax' as reported in Consolidated 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 tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted at the reporting date. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

Current tax is recognised in Consolidated Statement of Profit and Loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively.

Deferred tax

Deferred tax liabilities are recognised for all taxable temporary differences, except:

When the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss;
In respect of taxable temporary differences associated with investments in subsidiaries and interests in joint arrangements, when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.

When the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss;
In respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint arrangements, deferred tax assets are recognised only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilised.

Deferred tax is recognised in Consolidated Statement of Profit and Loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively.

Deferred tax liabilities are not recognised for temporary differences between the carrying amount and tax bases of investments in subsidiaries where the group is able to control the timing of the reversal of the temporary differences and it is probable that the differences will not reverse in the foreseeable future.

The Group recognizes tax credits in the nature of MAT credit as an asset only to the extent that there is convincing evidence that the Group will pay normal income tax during the specified period, i.e., the period for which tax credit is allowed to be carried forward. In the year in which the Group recognizes tax credits as an asset, the said asset is created by way of tax credit to Consolidated Statement of Profit and Loss. The Group reviews such tax credit asset at each reporting date and writes down the asset to the extent the Group does not have convincing evidence that it will pay normal tax during the specified period. Deferred tax includes MAT tax credit.

3.19. Employee Benefits

(a) Short Term Employee Benefits

(b) Post-Employment Benefits

(i) Defined contribution plan

The Group's approved provident fund scheme, superannuation fund scheme, employees' state insurance fund scheme and Employees' pension scheme are defined contribution plans. The Group has no obligation, other than the contribution paid/payable under such schemes. The contribution paid/payable under the schemes is recognised during the period in which the employee renders the related service.

(ii) Defined benefit plan:

The employee's gratuity fund scheme, provident fund and Compensatory Pension Scheme are Company's defined benefit plans.

Gratuity fund scheme and Compensatory Pension Scheme

Company Administered Provident Fund

The Company has an obligation to make good the shortfall, if any, between the return from the investments of the Trust and the notified interest rate.

(c) Other long term employment benefits:

The employee's long term compensated absences are Group's defined benefit plans. The present value of the obligation is determined based on the actuarial valuation using the Projected Unit Credit Method as at the date of the Balance sheet. In case of funded plans, the fair value of plan asset is reduced from the gross obligation, to recognise the obligation on the net basis.

(d) Termination Benefits:

Termination benefits such as compensation under voluntary retirement scheme are recognised in the year in which termination benefits become payable.

3.20. Share-based payments

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

Equity-settled transactions:

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

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

conditions are reflected within the grant date fair value. Any other conditions attached to an award, but without an associated service requirement, are considered to be non-vesting conditions. Non-vesting conditions are reflected in the fair value of an award and lead to an immediate expensing of an award unless there are also service and/or performance conditions.

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

The dilutive effect of outstanding options is reflected as additional share dilution in the computation of diluted earnings per share.

Cash-settled transactions:

In case of cash-settled transactions, a liability is recognised for the fair value of cash-settled transactions.

The fair value is measured initially and at each reporting date up to and including the settlement date, with Changes in fair value recognised in employee benefits expense. The fair value is expensed over the period until the vesting date with recognition of a corresponding liability. The fair value is determined with the assistance of an external valuer.

3.21. Earnings per share (EPS)

Basic EPS is computed by dividing the net profit / loss for the year attributable to ordinary equity holders of the Group by the weighted average number of ordinary shares outstanding during the year.

Diluted EPS is computed by dividing the net profit / loss attributable to ordinary equity holders of the Group by the weighted average number of ordinary shares outstanding during the year adjusted for the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares.

dilutive equity shares are adjusted retrospectively for all periods presented for any share splits and bonus shares issues including for changes effected prior to the approval of the financial statements by the Board of Directors.

3.22. Dividend

The Group recognises a liability (including tax thereon) to make cash or non-cash distributions to equity shareholders of the Group when the distribution is authorised and the distribution is no longer at the discretion of the Group.

Non-cash distributions are measured at the fair value of the assets to be distributed with fair value re-measurement recognised directly in equity.

Upon distribution of non-cash assets, any difference between the carrying amount of the liability and the carrying amount of the assets distributed is recognised in Consolidated Statement of Profit and Loss.

3.23. Provisions and Contingencies

Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, and 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 Group expects some or all of a provision to be reimbursed from third parties, for example, under an insurance contract, the reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably. The expense relating to a provision is presented in the statement of profit or loss net of any reimbursement.

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Group or a present obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognised because it cannot be measured reliably. The Group does not recognize a contingent liability but discloses its existence in the Consolidated Financial Statements.

Contingent assets are not recognised but disclosed in the Consolidated financial statements when an inflow of economic benefits is probable.

3.24. Non-current assets held for sale/ distribution to owners and discontinued operations

The Group classifies non-current assets (or disposal group) as held for sale if their carrying amounts will be recovered principally through a sale rather than through continuing use. Actions required to complete the sale should indicate that it is unlikely that significant changes to the sale will be made or that the decision to sell will be withdrawn. Management must be committed to the sale expected within one year from the date of classification.

The criteria for held for sale classification is regarded met only when the assets is available for immediate sale in its present condition, subject only to terms that are usual and customary for sales of such assets, its sale is highly probable; and it will genuinely be sold, not abandoned. The Group treats sale of the asset to be highly probable when:

The appropriate level of management is committed to a plan to sell the asset,
An active programme to locate a buyer and complete the plan has been initiated (if applicable),
The asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value,
The sale is expected to qualify for recognition as a completed sale within one year from the date of classification , and
Actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn.

Property, plant and equipment and intangible assets once classified as held for sale/ distribution to owners are not depreciated or amortised.

A discontinued operation qualifies as discontinued operation if it is a component of an entity that either has been disposed of, or is classified as held for sale, and:

Represents a separate major line of business or geographical area of operations,
Is part of a single co-ordinated plan to dispose of a separate major line of business or geographical area of operations; or
Is a subsidiary acquired exclusively with a view to resale

Discontinued operations are excluded from the results of continuing operations and are presented as a single amount as profit or loss after tax from discontinued operations in Consolidated Statement of Profit and Loss.

3.25. Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker.

3.26. Research and Development

4. Critical accounting estimates and assumptions

The preparation of the Consolidated Financial Statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

4.1. Estimates and assumption

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Group based its assumptions and estimates on parameters available when the Consolidated Financial Statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Group. Such changes are reflected in the assumptions when they occur.

(a) Taxes

The Group has 164.99 crores (March 31, 2020: 167.79 crores) of tax credits carried forward. These credits expire in 15 years from the date of initial recognition. The Group has taxable temporary difference and tax planning opportunities available that could partly support the recognition of these credits as deferred tax assets. On this basis, the Group has determined that it can recognise deferred tax assets on the tax credits carried forward.

The Group has (0.53) crores (March 31, 2020: 34.65 crores) of unused tax losses available which is carried forward for set off against taxable income in future years. The Group believes that if sufficient future taxable income available to utilise against which the unused tax losses can be utilised. On this basis, the Group has determined that it has recognised deferred tax assets on the carried forward tax losses.

Further details on taxes are disclosed in note 29.

(b) Useful life of Property, plant and equipment and Intangible Assets

As described in Note 3.6 and 3.11 of the significant accounting policies, the Group reviews the estimated useful lives of property, plant and equipment and intangible assets at the end of each reporting period.

(c) Provisions and contingencies

The assessments undertaken in recognising provisions and contingencies have been made in accordance with the applicable Ind AS. A provision is recognized if, as a result of a past event, the Group has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Where the effect of time value of money is material, provisions are determined by discounting the expected future cash flows.

The Group has significant capital commitments in relation to various capital projects which are not recognized on the balance sheet. In the normal course of business, contingent liabilities may arise from litigation and other claims against the Group. Guarantees are also provided in the normal course of business. There are certain obligations which management has concluded, based on all available facts and circumstances, are not probable of payment or are very

difficult to quantify reliably, and such obligations are treated as contingent liabilities and disclosed in the notes but are not reflected as liabilities in the Consolidated Financial Statements. Although there can be no assurance regarding the final outcome of the legal proceedings in which the Group involved, it is not expected that such contingencies will have a material effect on its financial position or profitability (Refer note 16 and 30).

(d) Defined benefit plans

The determination of Group's liability towards defined benefit obligation to employees is made through independent actuarial valuation including determination of amounts to be recognised in Consolidated Statement of Profit and Loss and in other comprehensive income. Such valuation depend upon assumptions determined after taking into account inflation, seniority, promotion and other relevant factors such as supply and demand factors in the employment market. Information about such valuation is provided in notes to the Consolidated Financial Statements.

Further details about defined benefit obligations are provided in note 34.

Note 5 : Property, plant and equipment

Particulars	Freehold land	Leasehold land	Building	Plant & Machinery	Furniture & fixture	Vehicles	Leasehold Improve ments	Office Equipment	Computer, server & network	Total
Gross Carrying Amount
As at April 1, 2019	1,136.46	182.65	548.35	1,833.68	86.99	53.05	37.22	33.37	48.76	3,960.53
Additions	25.72	-	45.98	439.45	11.94	10.34	0.62	4.52	6.45	545.02
Transfer	-	-	-	0.78	0.83	-	-	(0.83)	(0.78)	-
Transfer from Investment Property	-	-	7.56	-	-	-	-	-	-	7.56
Transfer to Intangible Assets	-	-	-	-	-	-	-	-	0.51	0.51
Transfer to Stock In Trade (Refer note 6 below)	21.26	-	-	-	-	-	-	-	-	21.26
Other adjustments	-	-	-	0.67	-	-	-	-	-	0.67
Foreign Currency Translation Reserve	-	-	-	(7.65)	(0.30)	(0.09)	0.02	0.01	(0.11)	(8.12)
Deductions	-	-	-	18.65	1.20	7.26	2.95	0.43	(0.29)	30.20
As at April 1, 2020	1,140.92	182.65	601.89	2,248.28	98.26	56.04	34.91	36.64	54.10	4,453.69
Additions	7.57	-	1.42	96.80	2.20	4.70	9.24	1.05	3.34	126.32
Transfer from Investment Property	-	-	10.75	-	-	-	1.53	-	-	12.28
Transfer to Stock In Trade (Refer note 6 below)	8.06	-	-	-	-	-	-	-	-	8.06
Foreign Currency Translation Reserve	-	-	(0.48)	(30.68)	(1.24)	(0.31)	(0.01)	(0.01)	(0.60)	(33.33)
Deductions	-	-	1.12	13.20	1.10	10.56	0.46	0.06	0.03	26.53
As at March 31, 2021	1,140.43	182.65	612.46	2,301.20	98.12	49.87	45.21	37.62	56.81	4,524.37
Accumulated Depreciation and Impairment
As at April 1, 2019	-	-	88.89	528.02	28.01	14.31	21.84	19.14	26.32	726.53
Depreciation for the year	-	-	24.78	149.02	9.46	6.60	5.21	5.00	7.68	207.75
Transfer from Investment Property	-	-	0.96	-	-	-	-	-	-	0.96
Transfer to Intangible Assets	-	-	-	-	-	-	-	-	0.02	0.02
Transfer	-	-	0.12	(0.21)	(0.11)	-	-	(0.01)	0.21	-
Foreign Currency Translation Reserve	-	-	0.32	(1.42)	(0.32)	(0.03)	0.01	0.01	(0.22)	(1.65)
Deductions	-	-	-	5.69	0.43	2.30	1.62	0.25	(0.13)	10.16
As at April 1, 2020	-	-	114.83	670.14	36.83	18.58	25.44	23.91	33.68	923.41
Depreciation for the year	-	-	26.37	157.35	9.03	6.19	4.68	4.14	6.84	214.60
Transfer	-	-	(0.89)	-	-	-	(0.03)	-	-	(0.92)
Foreign Currency Translation Reserve	-	-	(0.14)	(10.09)	(0.56)	(0.12)	-	-	(0.20)	(11.11)
Deductions	-	-	0.17	3.90	0.76	3.69	0.24	0.04	0.03	8.83
As at March 31, 2021	-	-	141.78	813.50	44.54	20.96	29.91	28.01	40.29	1,118.99
Net Carrying Amount
As at March 31, 2021	1,140.43	182.65	470.68	1,487.70	53.58	28.91	15.30	9.61	16.52	3,405.38
As at April 1, 2020	1,140.92	182.65	487.06	1,578.14	61.43	37.46	9.47	12.73	20.42	3,530.28

Notes :

Freehold Land amounting to 51.67 crores in respect of which registration are pending in the favour of the Company. For Capital Work-in Progress, the Company is in process to execute deeds of 47.71 crores for land.
Buildings includes 1.91 crores (Previous year 2.45 crores) in respect of ownership flats in Co-Operative Housing Society and 500/- (Previous year 500/-) in respect of shares held in Co-Operative Housing Society.
Details of Borrowing Cost and Exchange Differences Capitalised:

	2020-21	2019-20	2020-21	2019-20
Borrowing Cost	0.45	2.49	0.68	0.59
Exchange Differences	-	(0.19)	-	-
Total	0.45	2.30	0.68	0.59

Additions in Plant and Machinery includes ? Nil Crores ( Previous Year 3.99 Crores ) which are purchased for the Research & Development purpose. For details refer note no 48. `
For Properties Pledge as security - Refer note no 15 (a).
During the year , Freehold Land of 8.06 Crores (Previous Year 21.26 Crores) is transferred to Stock In Trade.

` in Crores

Gross Carrying Amount
As at April 1, 2019	21.44	14.18	35.62
Additions	-	7.13	7.13
Transfer to Property, Plant and Equipment	-	7.56	7.56
As at April 1, 2020	21.44	13.75	35.19
Transfer to Property, Plant and Equipment	-	12.28	12.28
As at March 31, 2021	21.44	1.47	22.91
Accumulated Depreciation
As at April 1, 2019	-	1.49	1.49
Depreciation for the year	-	0.29	0.29
Transfer to Property, Plant and Equipment	-	0.96	0.96
As at April 1, 2020	-	0.82	0.82
Depreciation for the year	-	0.22	0.22
Transfer to Property, Plant and Equipment	-	0.92	0.92
As at March 31, 2021	-	0.12	0.12
Net Carrying Amount
As at March 31, 2021	21.44	1.35	22.79
As at April 1, 2020	21.44	12.93	34.37

Notes :

(1) Buildings of investment property includes ` 9.05 crores in respect of which registration are pending in the favour of the Company.

(2) Information regarding income and expenditure of Investment property

Particulars	Year ended	Year ended
	March 31, 2021	March 31, 2020
Rental income derived from Investment properties	0.60	1.75
Less: Direct operating expenses (including repairs and maintenance)	0.02	0.01
Profit arising from investment properties before depreciation	0.58	1.74
Less : Depreciation	0.22	0.29
Profit arising from investment properties	0.36	1.45

(3) The fair value of the properties are based on internal evaluation by the management.

Fair value of the Investment properties are as under

Fair value
Balance as at April 1, 2020	27.98	16.82	44.80
Less : Fair Value Transfer to Property, Plant and Equipment	-	(12.51)	(12.51)
Balance as at March 31 2021	27.98	4.31	32.29

The fair value of the properties are based on internal evaluation by the management.

` in Crores

Notes to the Consolidated Financial Statements

Note 7 : Intangible assets

Particulars	Computer Software	Patent & Technical knowhow	Website (Refer note (1) below)	Brand Value & Licence Brands	Distribu tion Network	Total	Goodwill	Goodwill on Consolid ation	Total Goodwill
Gross Carrying Amount
As at April 1, 2019	95.74	36.09	71.37	2.58	15.45	221.23	17.24	8.95	26.19
Additions	4.05	5.14	-	-	-	9.19	-	-	-
Transfer from Tangible Assets	0.51	-	-	-	-	0.51	-	-	-
Exchange Rate Difference	-	-	-	0.06	0.47	0.53	0.51	-	0.51
Deductions	(0.16)	1.67	-	-	-	1.51	-	-	-
As at April 1, 2020	100.46	39.56	71.37	2.64	15.92	229.95	17.75	8.95	26.70
Additions	1.68	0.15	-	-	-	1.83	-	-	-
Exchange Rate Difference	-	-	-	0.20	1.47	1.67	1.66	-	1.66
Deductions	0.26	-	-	-	-	0.26	-	-	-
As at March 31, 2021	101.88	39.71	71.37	2.84	17.39	233.19	19.41	8.95	28.36
Accumulated Depreciation
As at April 1, 2019	35.05	21.97	32.18	0.77	4.44	94.41	-	-	-
Amortisation for the Year	16.63	8.25	14.85	0.23	0.90	40.86	-	-	-
Transfer from Tangilble Assets	0.02	-	-	-	-	0.02	-	-	-
Exchange Rate Difference	-	-	-	0.02	0.13	0.15	-	-	-
Deductions	(0.13)	1.67	-	-	-	1.54	-	-	-
As at April 1, 2020	51.83	28.55	47.03	1.02	5.47	133.90	-	-	-
Amortisation for the Year	15.89	7.64	14.86	0.23	0.87	39.49	-	-	-
Impairment for the year	-	-	-	-	-	-	13.18	-	13.18
Exchange Rate Difference	-	-	-	0.07	0.55	0.62	0.59	-	0.59
As at March 31, 2021	67.72	36.19	61.89	1.32	6.89	174.01	13.77	-	13.77
Net Carrying Amount
As at March 31, 2021	34.16	3.52	9.48	1.52	10.50	59.18	5.64	8.95	14.59
As at April 1, 2020	48.63	11.01	24.34	1.62	10.45	96.05	17.75	8.95	26.70

Notes :

Website consist of Capitalised development cost being an internally generated intangible assets.
During the year, Amortisation of 0.36 Crores (Previous year 1.45 Crores) has been capitalised.

` in Crores

Note 8 : Financial assets

8 (a) Investments
-------------------	--

	Particulars	Face Value		No. of Shares/unit		Amount
		per Share	As at	As at	As at	As at
		(in unless `	March	March	March	March
		otherwise	31, 2021	31, 2020	31, 2021	31, 2020
		stated)
	(a) Investment in equity shares (fully paid up):
I.	Subsidiaries - measured at cost (unquoted) :
	Arvind Foundation **	10	10,000	10,000	0.01	0.01
	Arvind Worldwide(M) Inc., Mauritius ***	100 USD	54,840	54,840	0.01	0.01
	Less: Provision for Impairment				(0.01)	(0.01)
					-	-
	Arvind Spinning Limited (Shares without par value) ***		8,24,099	8,24,099	0.08	0.08
	Less: Provision for Impairment				(0.08)	(0.08)
	Arvind Overseas (M) Inc., Mauritius ***	100 Mau	23,85,171	23,85,171	- 0.24	- 0.24
	Less: Provision for Impairment				(0.24)	(0.24)
					-	-
		Total (I)			0.01	0.01
II.	Joint Ventures - measured using equity Method (unquoted)
	Adient Arvind Automotive Fabrics India Private Limited	10	81,42,750	81,42,750	8.14	8.14
	Less: Provision for Impairment				(5.00)	(5.00)
					3.14	3.14
	PVH Arvind Manufacturing PLC, Ethiopia	1000 ETB	84,166	84,166	25.10	25.88
	Less: Provision for Impairment				(25.10)	(5.33)
					-	20.55
	Arya Omnitalk Radio Trunking Services Private Limited	10	10,05,000	10,05,000	6.49	5.65
	Arvind Norm CBRN Systems Private Limited	10	5,000	5,000	0.01	0.01
	Arudrama Development Private Limited	100	50,000	50,000	2.05	2.05
		Total (II)			11.69	31.40
III.	Limited Liability Partnerships:
	Joint ventures - measured using equity Method (unquoted)
	Arvind and Smart Value Homes LLP				56.46	56.88
IV.	Others - Fair value through Other Comprehensive Income:	Total (III)			56.46	56.88
	Unquoted
	Amazon Textile Private Limited*	10	1,18,000	1,18,000	0.01	0.01
	Abeer Textiles Private Limited*	10	22,42,000	22,42,000	2.09	2.09
	Ahmedabad Cotton Merchants' Co-operative Shops and
	Warehouses Society Limited*	250	140	140	( 35,000/-) `	(? 35,000/-)
	Gujarat Cloth Dealers Co-operative Shops and
	Warehouses Society Limited*	100	10	10	( 1,000/-) `\| ( 1,000/-)<br>`
		Total (IV)			2.10	2.10
	Total Equity Investments ((I) + (II) + (III) + (IV)	Total (a)			70.26	90.39
(b)	Investment in debentures - measured
	at amortised cost (Unquoted):
	9.00% Optionally Convertible Debentures of
	Arya Omnitalk Radio Trunking Services Private Limited	10	2500	2500	0.02	0.02
		Total (b)			0.02	0.02
	Total Investments (a)+(b)				70.28	90.41
	Aggregate amount of quoted investments				-	-
	Aggregate amount of unquoted investments				70.28	90.41
	Aggregate impairment in value of investment				30.43	10.66

` in Crores

Note 8 : Financial assets 8 (a) Investments (Contd.)

Disclosure in respect of Partnership Firms

Name of the Firm	Name of the Partner	Share in		Capital as at
		partnership	March 31, 2021	March 31, 2020
Arvind and Smart Value Homes LLP	Arvind Limited	50%	56.46	56.88
	Tata Value Homes Limited	50%	63.40	63.47

* The management has assessed that carrying value of the investments approximate to their fair value.

** The Group has made investment of ? 0.01 Crores in the equity shares of Arvind Foundation, which is a Company incorporated under Section 8 of the Act for the sole purpose of CSR activities. Since the Group has no intention of earning variable returns from the voting rights, the above investment doesn't meet the definition of control under Ind AS 110 and hence, not consolidated in the Consolidated Financial Statements.

*** Not considered for the purpose of consolidation for the financial year 2020-21 and 2019-20 respectively being defunct status.

8 (b) Trade receivables ~ Current

Particulars	As at	As at
	March 31, 2021	March 31, 2020
Unsecured, considered good	1,091.67	1,049.15
Less : Refundable Liability	-	(1.48)
Unsecured, considered doubtful	7.49	20.65
Less : Allowance for doubtful debts	(7.49)	(20.65)
Total Trade and other receivables	1,091.67	1,047.67
Receivables from Directors or from firm / Private company where director is interested (Refer note 35 for further details)	0.59	1.50
Trade receivables are non-interest bearing and are generally on terms of 7 to 180 days.

Trade Receivables are given as security for borrowings as disclosed under note 15(a).

Allowance for doubtful debts

The Group has provided allowance for doubtful debts based on the lifetime expected credit loss model using provision matrix. Movement in allowance for doubtful debt are as follows:

Particulars	Year ended	Year ended
	March 31, 2021	March 31, 2020
Balance as per last financial year	20.65	11.22
Add : Allowance for the year (Refer note 27 and 28)	-	9.90
Less : Write off of bad debts and other adjustment (net of recovery)	(13.16)	(0.47)
Balance at the end of the year	7.49	20.65

Note 8 : Financial assets

8 (c) Loans

` in Crores

Particulars	As at March 31, 2021	As at March 31, 2020
Unsecured, considered good unless otherwise stated
Non-current
Loans to employees	0.68	0.94
Total Non-current Loans (A)	0.68	0.94
Current
Loans to
- Employees	0.23	0.44
- Others	49.93	39.07
	50.16	39.51
Considered Doubtful
Loans to related parties (Refer note 35)	5.23	5.23
Less : Allowance for doubtful loan	(5.23)	(5.23)
	-	-
Total Current Loans (B)	50.16	39.51
Total Loans (A)+(B)	50.84	40.45
Loans to Directors or to firm / Private company where director is interested
(Refer note 35 for further details)	-	-

8 (d) Cash and cash equivalents

Particulars	As at March 31, 2021	As at March 31, 2020
Cash on hand	0.21	0.28
Cheques on hand	-	3.77
Balance with Banks
In Current accounts and debit balance in cash credit accounts	26.27	46.05
In Deposits with original maturity of less than three months	0.64	-
In Exchange Earners Foreign Currency account	-	0.14
Total cash and cash equivalents	27.12	50.24

8 (e) Other bank balance

Particulars	As at	As at
	March 31, 2021	March 31, 2020
Unpaid dividend accounts	3.46	3.92
Deposits with original maturity of more than three months but less than 12 months	20.98	18.43
Deposits held as Margin Money*	-	11.49
Total other bank balances	24.44	33.84

* Under lien with bank as Security for Guarantee Facility given by the Bankers.

Note 8 : Financial assets

8 (f) Other financial assets ` in Crores
Particulars	As at March 31, 2021	As at March 31, 2020
Unsecured, considered good unless otherwise stated
Non-current
Security deposits	29.15	35.55
Deposits held as Margin Money*	1.99	3.80
Foreign exchange forward contracts (Cash flow hedge)	0.12	-
Share Application Money	1.49	1.49
Less : Provision for doubtful share application money	(1.49)	(1.49)
	-	-
Bank deposits with maturity of more than 12 months	4.73	1.98
Total Other Non-current Financial Asset (A)	35.99	41.33
Current
Security deposits	9.04	6.90
Income receivable	3.84	4.97
Interest Subsidy Receivable	22.84	32.84
Interest Accrued on financial assets measured at amortised cost	2.40	6.12
Foreign exchange forward contracts (Cash flow hedge)	23.64	0.11
Receivable other than trade	18.75	26.00
Others	37.97	48.20
Total Other Current Financial Asset (B)	118.48	125.14
Total (A)+(B)	154.47	166.47

* Deposits are placed as bank guarantee to the sales tax department of various states.

Other current financial assets are given as security for borrowings as disclosed under note - 15(a).

Note 9 : Other assets

Notes to the Consolidated Financial Statements

` in Crores

Particulars	As at March 31, 2021	As at March 31, 2020
Non-current
Capital advances
Considered Good	32.16	11.12
Pre-paid expense	0.36	0.53
Other than Capital Advances
Advances to suppliers - Doubtful	0.30	0.05
Less : Provision for doubtful advances	(0.30)	(0.05)
	-	-
Total Other Non-current Asset (A)	32.52	11.65
Current
Advance to suppliers
Considered Good	97.76	61.47
Advances to suppliers - Doubtful	0.09	-
Less : Provision for doubtful advances	(0.09)	-
	97.76	61.47
Balance with Government Authorities (Refer note (i) below)	148.11	156.15
Export incentive receivable	25.17	84.38
Pre-paid expense	13.86	16.09
Income Receivable	23.08	15.97
Pre-paid Gratuity (Refer note 34)	6.56	-
Returnable Assets	-	12.03
Other Current Asset	4.91	3.67
Total Other Current Asset (B)	319.45	349.76
Total (A) + (B)	351.97	361.41
Advance to Directors or to firm / Private company where director is interested
(Refer note 35 for further details) (i) Balance with Government Authorities mainly consists of input credit availed.	0.02	2.05

Other current assets are given as security for borrowings as disclosed under note 15(a).

Note 10 : Inventories (At lower of cost and net realisable value)

Particulars	As at	As at
	March 31, 2021	March 31, 2020
Raw materials
- Raw materials and components	359.33	298.24
- Raw materials in transit	2.65	4.01
Fuel	4.03	2.47
Land plots and materials at site	55.18	31.59
Stores and spares	48.99	52.78
Work-in-progress	302.13	390.06
Finished goods	267.95	350.15
Waste	2.36	2.96
Stock-in-trade	75.45	89.95
Stock-in-trade in transit	-	12.84
Land Held as Stock-in-trade	41.78	41.78
Total	1,159.85	1,276.83

Inventory write downs are accounted, considering the nature of inventory, ageing and net realisable value for 44.99 Crores (March 31, 2020 51.71 Crores). The changes in write downs are recognised as an expense in the Statement of Profit and Loss.

Inventories are hypothecated as security for borrowings as disclosed under note 15 (a).

` in Crores

Note 11 : Current Tax Assets (Net)

Particulars	As at	As at
	March 31, 2021	March 31, 2020
Tax Paid in Advance (Net of Provision)	22.70	24.22
Total	22.70	24.22

Note 12 : Current Tax Liability (Net)

Particulars	As at	As at
	March 31, 2021	March 31, 2020
Provision for taxation (Net of Advance Tax)	0.04	2.31
Total	0.04	2.31

Note 13 : Equity share capital:

Particulars		As at March 31, 2021	As at March 31, 2020
	No. of shares	in Crores `\| No. of shares \| in Crores<br>`
Authorised share capital
Equity shares of 10 each `	57,45,00,000	574.50	57,45,00,000	574.50
Preference shares of 100 each `	1,00,00,000	100.00	1,00,00,000	100.00
Issued, subscribed and paid-up share capital
Equity shares of 10 each `	25,89,24,069	258.92	25,87,67,069	258.77
Add : Forfeited shares	900	(`4,500/-) \| 900 \| ( 4,500/-)<br>`
Total	25,89,24,969	258.92	25,87,67,969	258.77

(i) Reconciliation of equity shares outstanding at the beginning and at the end of the year:

Particulars	As at March 31, 2021		As at March 31, 2020
	No. of shares	in Crores `\| No. of shares \| in Crores<br>`
Outstanding at the beginning of the year Add : Shares allotted pursuant to exercise of	25,87,67,069	258.77	25,86,17,069	258.62
Employee Stock Option Scheme	1,57,000	0.15	1,50,000	0.15
Outstanding at the end of the year	25,89,24,069	258.92	25,87,67,069	258.77

(ii) Rights, Preferences and Restrictions attached to equity shares:

The Company has one class of shares having par value of `10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

(iii) Details of shareholder holding more than 5% Shares in the Company:

Name of the Shareholder	As at March 31, 2021			As at March 31, 2020
	No. of shares	% of	No. of shares	% of
		shareholding		shareholding
Aura Securities Private Limited	9,55,61,810	36.91	9,55,61,810	36.93

(iv) Shares reserved for issue under options:

Refer note 37 for details of shares to be issued under employee stock option scheme (ESOS 2008).

(v) In the period of five years immediately preceding March 31, 2021:

i) The Company has not allotted any equity shares as fully paid up without payment being received in cash.
ii) The Company has not allotted any equity shares by way of bonus issue.
iii) The Company has not bought back any equity shares.

` in Crores

Note 14 : Other Equity

Particulars		As at As at
		March 31, 2021	March 31, 2020
(a)	Capital reserve
	Balance as per last financial statements	17.16	17.16
	Balance at the end of the year	17.16	17.16
(b)	Capital reserve on Consolidation
	Balance as per last financial statements	1.50	1.50
	Balance at the end of the year	1.50	1.50
(c)	General reserve
	Balance as per last financial statements	1.47	1.47
	Add : Transfer from Debenture Redumption Reserve	50.00	-
	Balance at the end of the year	51.47	1.47
(d)	Amalgamation reserve
	Balance as per last financial statements	34.54	34.54
	Balance at the end of the year	34.54	34.54
(e)	Securities premium account
	Balance as per last financial statements	562.01	564.77
	Add: Received during the year	-	0.71
	Less: Utilise during the year	-	(5.19)
	Add: Transfer from share based payment reserve	1.02	1.72
	Balance at the end of the year	563.03	562.01
(f)	Capital redemption reserve
	Balance as per last financial statements	69.50	69.50
	Balance at the end of the year	69.50	69.50
(g)	Debenture Redemption Reserve
	Balance as per last financial statements	50.00	50.00
	Less: Transfer to General Reserve	(50.00)	-
	Balance at the end of the year	-	50.00
(h)	Share based payment reserve (Refer note 37)
	Balance as per last financial statements	11.78	12.37
	Add: Addition during the year	1.13	1.13
	Less: Transfer to Securities Premium Account	(1.02)	(1.72)
(i)	Balance at the end of the year Retained earnings	11.89	11.78
	Balance as per last financial statements	1,775.14	1,750.77
	Add: Profit for the year	(16.52)	95.65
	Add: Other comprehensive income/(loss) arising from remeasurement of
	defined benefit obligation (net of tax)	15.53	0.08
	Add: Movement between Non-Controling Interest and Equity holders of the parent	-	14.51
	Less: Ind AS 116 transition Adjustment (Refer note 38)	-	(34.83)
	Add: Deferred Tax on Ind AS 116 transition Adjustment (Refer note 38)	-	11.25
		1,774.15	1,837.43
	Less: Payment of dividend on equity shares	-	(51.75)
	Less: Dividend distribution tax on dividend	-	(10.54)
	Balance at the end of the year	1,774.15	1,775.14

Note 14 : Other Equity (Contd.) ` in Crores
Particulars	As at	As at
	March 31, 2021	March 31, 2020
Items of Other comprehensive income
(i) Equity Instruments through OCI (net of tax)
Balance as per last financial statements	0.49	0.49
Balance at the end of the year	0.49	0.49
(ii) Foreign Currency Translation Reserve
Balance as per last financial statements	(47.31)	(34.89)
Add: Addition during the year	(24.41)	(12.42)
Balance at the end of the year	(71.72)	(47.31)
(iii) Cash Flow hedge reserve
Balance as per last financial statements	(26.47)	24.14
Add/(Less) : Addition during the year	53.55	(77.75)
Add/(Less) : Tax impact on additions	(18.72)	27.14
Balance at the end of the year	8.36	(26.47)
Total Other equity	2,460.37	2,449.81

The description of the nature and purpose of each reserve within equity is as follows :

a. Capital reserve

Capital Reserve includes forfeiture of application money received on issue of share warrants and Capital Reserves on amalgamation/Business Combinations.

b. General reserve

General Reserve is a free reserve created by the Group by transfer from Retained earnings for appropriation purposes.

c. Amalgamation reserve

d. Securities premium account

Securities premium reserve is created due to premium on issue of shares. These reserve is utilised in accordance with the provisions of the Companies Act.

e. Capital redemption reserve

Capital Redemption Reserve is created for redemption of preference shares from its retained earnings. The amount in Capital Redemption Reserve is equal to nominal amount of the preference shares redeemed. Capital Redemption Reserve may be applied by the Group in paying up unissued shares of the Group to be issued to shareholders of the Group as fully paid bonus shares.

f. Debenture Redemption Reserve

The reserve represents amount required to be set aside out of profits in accordance with Companies Act, 2013 up to 2019-20.

g. Share based payment reserve

This reserve relates to share options granted by the Group to its employee stock option scheme. Further information about share-based payments to employees is set out in note 37.

h. Capital reserve on consolidation

Gain on purchase, i.e. excess of fair value of net assets acquired over the fair value of consideration in a business combination or on acquisition of interest in subsidiary is recognised as capital reserve on consolidation.

i. Equity Instruments through OCI

The Group has elected to recognise changes in the fair value of certain investment in equity instrument in other comprehensive income. This amount will be reclassified to retained earnings on derecognition of equity instrument.

` in Crores

2020 - 2021

Note 14 : Other Equity (C0ntd.)

j Cash Flow hedge reserve

k Foreign currency translation reserve

Exchange differences relating to the translation of the results and net assets of the Group's foreign operations from their functional currencies to the Group's presentation currency (i.e. Currency Units) are recognised directly in other comprehensive income and accumulated in the foreign currency translation reserve.

Note 15 : Financial liabilities

15 (a) Long-term Borrowings

	Particulars	As at	As at
		March 31, 2021	March 31, 2020
A.	Non-current portion
	(Secured)(at amortised cost)
	(ai) Term loan
	- from Banks	894.24	918.59
	- from others	174.34	-
	(aii) Non convertible Debentures	73.32	-
	(Unsecured)(at amortised cost)
	(aiii)Non convertible Debentures	-	99.75
		1,141.90	1,018.34
B.	Current maturities (Refer note (i) below)
	(Secured)(at amortised cost)
	(bi) Term loan
	- from Banks	229.51	159.44
	- from others	-	2.50
	(Unsecured)(at amortised cost)
	(bii) Non convertible Debentures	-	100.00
		229.51	261.94
	Total long-term borrowings (A) + (B)	1,371.41	1,280.28
C.	Short-term Borrowings
	(Secured)(at amortised cost)
	(ci) Working Capital Loans repayable on demand from Banks	601.27	1,127.80
	(Unsecured)(at amortised cost)
	(cii) Working Capital Loans repayable on demand from Banks	-	23.66
	(ciii) Under Buyer's Credit Arrangement	25.53	19.75
	(civ) Intercorporate Deposits
	From Others	3.94	3.94
	Total short-term borrowings ( C )	630.74	1,175.15
	Total borrowings (A) +(B) + ( C )	2,002.15	2,455.43

Notes :

i) Installments falling due within a year in respect of all the above Loans aggregating 229.51 crores (March 31, 2020 : 261.94 crores) have been grouped under "Current maturities of long-term debt" (Refer note 15(c))

Note 15 : Financial liabilities

15 (a) Long-term Borrowings (Contd.)

ii) Nature of security:

Term loan of `1,298.09 Crores and NCD of` 73.32 Crores

a) (i) Loans amounting to Nil Crores (March 31, 2020 956.52 Crores) are secured by (a) first pari passu charge on all the Immovable Properties, Movable Properties, Intangible Properties and General Assets of the Holding Company presently relating to the Textile Plant and Garment Division at Bangalore; and all Immovable Properties, Movable Properties, Intangible Properties and General Assets acquired by the Company at any time after execution of and during the continuance of the Indenture of Mortgage; (b) charge on the Holding Company's Trademarks; (c) Secured by second pari passu charge on all the Holding Company's Current Assets presently relating to the Textile Plants and Garment Division and all the current assets acquired by the Holding Company at any time in future.

(ii) Loans and NCD amounting to 549.34 Crores (March 31, 2020 Nil Crores) are secured by (a) first pari passu charge on all the Immovable Properties, Movable Properties, Intangible Properties and General Assets of the Company presently relating to the Textile Plants and Garment Division at Bangalore; and all Immovable Properties, Movable Properties, Intangible Properties and General Assets acquired by the Company at any time after execution of and during the continuance of the Indenture of Mortgage; (b) Secured by second pari passu charge on all the Company's Current Assets presently relating to the Textile Plants and Garment Division and all the current assets aquired by the Company at any time in future.

(iii) Loans amounting to 218.22 Crores (March 31, 2020 Nil Crores) are secured by (a) first pari passu charge on all the Immovable Properties, Movable Properties, Intangible Properties and General Assets of the Company presently relating to the Textile Plants and Garment Division at Bangalore; and all Immovable Properties, Movable Properties, Intangible Properties and General Assets acquired by the Company at any time after execution of and during the continuance of the Indenture of Mortgage; (b) Pledge of shares of Arvind Envisol Limited, wholly own subsidiary of the company ; (c) Secured by second pari passu charge on all the Company's Current Assets presently relating to the Textile Plants and Garment Division and all the current assets aquired by the Company at any time in future .

(iv) Loans amounting to 99.08 Crores (March 31, 2020 Nil Crores) are secured by (a) exclusive charge on some of the Immovable properties at Dholka; (b) first pari passu charge on all the Immovable Properties, Movable Properties, Intangible Properties and General Assets of the Company presently relating to the Textile Plants and Garment Division at Bangalore; and all Immovable Properties, Movable Properties, Intangible Properties and General Assets acquired by the Company at any time after execution of and during the continuance of the Indenture of Mortgage; (c) Secured by second pari passu charge on all the Company's Current Assets presently relating to the Textile Plants and Garment Division and all the current assets aquired by the Company at any time in future. Process for creation of securities mentioned in (b) and (c) for these loans has been initiated.

(v) Loans amounting to 197.10 Crores (March 31, 2020 Nil Crores) are secured by (a) exclusive charge on Immovable properties of Ankur division; (b) first pari passu charge on all the Immovable Properties, Movable Properties, Intangible Properties and General Assets of the Company presently relating to the Textile Plants and Garment Division at Bangalore; and all Immovable Properties, Movable Properties, Intangible Properties and General Assets acquired by the Company at any time after execution of and during the continuance of the Indenture of Mortgage; (c) Secured by second pari passu charge on all the Company's Current Assets presently relating to the Textile Plants and Garment Division and all the current assets aquired by the Company at any time in future .

(vi) Loans amounting to 174.34 Crores (March 31, 2020 Nil Crores) are secured by (a) exclusive charge on some of the Immovable properties at Asarwa; (b) first pari passu charge on all the Immovable Properties, Movable Properties, Intangible Properties and General Assets of the Company presently relating to the Textile Plants and Garment Division at Bangalore; and all Immovable Properties, Movable Properties, Intangible Properties and General Assets acquired by the Company at any time after execution of and during the continuance of the Indenture of Mortgage. Process for creation of securities mentioned in (b) for these loans has been initiated.

(vii) Loans amounting to 74.93 Crores (March 31, 2020: Nil Crores) are secured by (a) first pari passu charge on all the Movable Properties, Intangible Properties and General Assets of the Company presently relating to the Textile Plants and Garment Division at Bangalore; and all Immovable Properties, Movable Properties, Intangible Properties and General Assets acquired by the Company at any time after execution of and during the continuance of the Indenture of Mortgage; (b) Secured by second pari passu charge on all the Company's Current Assets presently relating to the Textile Plants and Garment Division and all the current assets aquired by the Company at any time in future . Process for creation of securities for these loans has been initiated.

(viii) Process for creation of securities for Loans amounting to Nil Crores (March 31, 2020 40 Crores) have been initiated.

b) Loans amounting to 12.56 Crores (March 31, 2020 23.33 Crores) are secured by first pari passu charge over the entire land, building and fixed assets of the subsidiary company and by second pari passu charge over the inventory, receivables and other current assets of the company of the subsidiary company.

` in Crores

Note 15 : Financial liabilities

15 (a) Long-term Borrowings (Contd.)

c) (i) Loans amounting to 45.32 Crores (March 31, 2020 55.01 Crores) are secured by first pari passu charge over the entire moveable fixed assets of the subsidiary company and current assets of the company of the subsidiary company.

(ii) These Loans are additionally secured by Corprate Guarantee given by Holding company.

d) Loans of 0.52 Crores (March 31, 2020 5.67 Crores) are secured by hypothecation of related vehicles.

Rate of Interest and Terms of Repayment

	Particulars	in Crores `	Range of Interest (%)	Terms of Repayment from Balance sheet date
	From Banks
(a)	Term Loan
	(I) Secured Rupee Loans	1,123.23	2.10% to 10.95%	Repayable in quarterly instalments ranging between 1 to 23.

	(II) Secured Vehicle Loan	0.52	8.45% to 10.25%	Monthly payment of Equated Monthly Instalments beginning from the month subsequent to taking the loans

(b)	Non-Convertible Debentures	73.32	8.50%	Repayable in June 2023.

	From Others
	Secured Rupee Loans	174.34	8.85%	Repayable in 14 quarterly instalments.

Nature of Security

Cash Credit and Other Facilities from Banks

(a) Secured by first pari passu charge on all the Company's Current Assets presently relating to the Manufacturing Locations and all the Current Assets acquired by the Company at any time after the execution of and during the continuance of the Indenture of Mortgage.

(b) Secured by a second pari passu charge over all the Immovable Properties relating to Textile Plants, Movable Properties presently relating to the Company and all the movable properties aquired by the Company at any time in future after execution of and during the continuance of the Indenture of Mortgage.

Rate of Interest

i. Working Capital Loans from banks carry interest rates ranging from 3.00% to 9.50% per annum.

ii. Inter Corporate Deposit carries interest rate of 8.75% per annum.

15 (b) Trade payables

Particulars	As at	As at
	March 31, 2021	March 31, 2020
Acceptances Other trade payables (Refer note below)	134.83	118.90
- Total Outstanding dues of Micro Enterprises and Small Enterprises - Total Outstanding dues other then Micro Enterprises and Small Enterprises	38.79 1,226.64	10.64 1,130.32
Total	1,400.26	1,259.86

Note

No ` in Crores tes to the Consolidated Financial Statements

Note 15 : Financial liabilities

15 (b) Trade payables (Contd.)

	Particulars	As at March 31, 2021	As at March 31, 2020
(i)	Principal amount and the interest due thereon remaining unpaid to each supplier at the end of each accounting year (but within due date as per the MSMED Act) - Principal amount due to micro and small enterprise	38.79	10.64
	- Interest due on above	-	0.05
(ii)	Interest paid by the Group in terms of Section 16 of the Micro, Small and Medium Enterprises Development Act, 2006, along-with the amount of the payment made to the supplier beyond the appointed day during the period	-	-
(iii)	Interest due and payable for the period of delay in making payment (which have been paid but beyond the appointed day during the period) but without adding interest specified under the Micro, Small and Medium Enterprises Act, 2006	-	0.05
(iv) (v)	The amount of interest accrued and remaining unpaid at the end of each accounting year Interest remaining due and payable even in the succeeding years, until such date when the	-	0.05
	interest dues as above are actually paid to the small enterprises	-	0.05

(ii) For amount payable to related parties, refer note 35.

15 (c) Other financial liabilities

Particulars	As at March 31, 2021	As at March 31, 2020
Non-current
Security Deposits	0.33	0.45
Mark to market of derivative financial instruments	8.22	5.01
Total Other Non-current financial liabilities (A)	8.55	5.46
Current
Current maturity of long term borrowings [Refer note 15 (a)]	229.51	261.94
Interest accrued but not due on financial liabilities	8.73	19.31
Interest accrued and due on financial liabilities	1.63	-
Payable to employees	102.06	96.05
Deposits from customers and others	7.24	6.90
Payable in Respect of Capital Goods	12.38	9.49
Mark to Market of Derivative Financial Instruments	3.83	47.20
Unpaid dividends	3.46	3.92
Book overdraft	1.64	3.18
Other Payables	10.81	12.28
Total Other Current financial liabilities (B)	381.29	460.27
Total (A)+(B)	389.84	465.73

No ` in Crores tes to the Consolidated Financial Statements

Note 16 : Provisions
Particulars	As at	As at
	March 31, 2021	March 31, 2020
Long-term
Provision for employee benefits (Refer note 34)
Provision for leave encashment	25.73	32.55
Provision for Gratuity	2.04	2.36
Provision for compensatory pension*	2.21	2.34
Provision for Medical benefits	-	11.38
Total Long-term provisions (A)	29.98	48.63
Short-term
Provision for employee benefits (refer note 34)
Provision for leave encashment	7.71	8.17
Provision for Gratuity	1.47	4.73
Provision for superannuation	1.44	1.78
Provision for compensatory pension*	0.24	0.29
Provision for Medical benefits	-	0.66
Others
Provision for Warranties ( Refer note (a) below)	0.67	1.06
Total Short-term provisions (B)	11.53	16.69
Total (A)+(B)	41.51	65.32

* Including 0.77 Crores (March 31, 2020 : 1.02 crores) pertaining to employees for which the liability of the Company is crystallised. Hence, it is a liability towards defined contribution plan.

Note:

(a) Provision for Warranties

The Group has made provisions for warranty expenses. The movement in the provision account is as under:

Particulars	Year Ended March 31, 2021	Year Ended March 31, 2020
Balance as per last financial statements Add : Provision used during the year	1.06 (0.39)	1.92 (0.86)
Balance at the end of the year	0.67	1.06

Note 17 : Government grants

Particulars	As at	As at
	March 31, 2021	March 31, 2020
Non-current
Deferred income	71.69	73.12
Total Non-current government grants (A) Current	71.69	73.12
Deferred income	7.96	7.31
Total Current government grants (B)	7.96	7.31
Total (A)+(B)	79.65	80.43

Government grants

Particulars	Year Ended March 31, 2021	Year Ended March 31, 2020
Balance as per last financial year	80.43	69.02
Add : Received during the year	6.88	18.24
Add : Released to statement of profit and loss (net) (Refer note 20)	(7.66)	(6.83)
Balance at the end of the year	79.65	80.43

No ` in Crores tes to the Consolidated Financial Statements

Note 18 : Other liabilities

Particulars	As at	As at
	March 31, 2021	March 31, 2020
Non-current
Income received in advance	0.89	2.06
Total Other Non-current liabilities (A)	0.89	2.06
Current
Advance from customers	99.20	79.10
Statutory dues including provident fund and tax deducted at source	25.85	22.57
Deferred income of loyalty program reward points (Refer note (a) below)	0.16	0.16
Other liabilities	15.24	16.06
Total Other current liabilities (B)	140.45	117.89
Total (A)+(B)	141.34	119.95

(a) Deferred income of Loyalty Program Reward Points

The Group has deferred the revenue related to the customer loyalty program reward points. The movement in deferred revenue for those reward points are given below:

Particulars	Year Ended March 31, 2021	Year Ended March 31, 2020
Balance as per last financial year	0.16	0.09
Add : Deferment during the year (Net)	-	0.07
Balance at the end of the year	0.16	0.16

Note 19 : Revenue from operations

Particulars	Year Ended March 31, 2021	Year Ended March 31, 2020
Sale of products	4,814.23	6,981.19
Sale of services	71.82	102.84
Other Operating income
Waste sale	63.96	77.19
Gain on forward contracts	21.70	31.77
Export incentives	89.79	140.44
Foreign exchange fluctuation on vendors and customers	(4.17)	24.94
Liabilities no longer required written back	1.44	0.48
Others	14.21	10.15
Total	5,072.98	7,369.00

Disaggregation of Revenue from contracts with customers

Revenue based on Geography

Particulars	Year Ended March 31, 2021	Year Ended March 31, 2020
Domestic	2,510.37	4,169.49
Export	2,562.61	3,199.51
Revenue from Operations	5,072.98	7,369.00

` in Crores

Note 19 : Revenue from operations (Contd.)

Revenue based on business segment

In Textile and advances material business the group does not have any remaining performance obligation as contracts entered for sale of goods are for a shorter duration. There are no contracts for sale of services wherein performance obligation is unsatisfied to which transaction period has been allocated.

While in Others business the group have Unsatisfied (or partially satisfied) performance obligations which are subject to variability due to several factors such as terminations, changes in scope of contracts, periodic revalidations of the estimates, economic factors (changes in currency rates, tax laws etc.). The value of transaction price allocated to unsatisfied (or partially satisfied) performance obligations is expected to be recognised as revenue in the next year upon the progress on each contract. No consideration from contracts with customer is excluded from the amount mentioned below.

Particulars	Year Ended	Year Ended
	March 31, 2021	March 31, 2020
Textile	3,985.92	6,167.27
Advanced Material	677.84	702.10
Others	409.22	499.63
Revenue from Operations	5,072.98	7,369.00

Reconciliation of revenue from operation with contract price

Particulars	Year Ended March 31, 2021	Year Ended March 31, 2020
Revenue from contract with customers as per the contract price	5,251.07	7,591.42
Less : Adjustment made to contract price on account of:
a) Discounts and Rebates	42.70	60.83
b) Sales Return	118.26	134.25
c) Bonus / incentive	16.98	26.73
d) Customer loyalty programme	0.15	0.61
Revenue from Operations	5,072.98	7,369.00

Note 20 : Other income

Particulars	Year Ended March 31, 2021	Year Ended March 31, 2020
Interest income on financial assets measured at amortized cost	5.64	19.31
Government grants (Refer note 17)	7.66	6.83
Rent	0.60	1.84
Profit/(Loss) on sale of Property, plant and equipment (Net)	9.63	(2.14)
Exchange difference on Borrowing and others	-	0.15
Scrap income	10.25	8.61
Miscellaneous income	17.81	20.64
Total	51.59	55.24

Note 21 : Cost of raw materials and accessories consumed ` in Crores

Particulars	Year Ended	Year Ended
	March 31, 2021	March 31, 2020
Inventories at the beginning of the year	298.24	507.13
Add : Purchases during the year	2,149.91	3,091.57
	2,448.15	3,598.70
Less : Inventories at the end of the year	359.33	298.24
Total	2,088.82	3,300.46

Note 22 : Purchases of stock-in-trade

Particulars	Year Ended	Year Ended
	March 31, 2021	March 31, 2020
Purchase of stock-in-trade	271.81	365.91
Total	271.81	365.91

Note 23 : Changes in inventories of finished goods, work-in-progress and stock-in-trade

Particulars	Year Ended March 31, 2021	Year Ended March 31, 2020
Inventories at the end of the year
Finished goods	267.95	350.15
Stock-in-trade	75.45	89.95
Work-in-Progress	302.13	390.06
Project work-in-progress	55.18	31.59
Waste	2.36	2.96
(A)	703.07	864.71
Inventories at the beginning of the year
Finished goods	350.15	377.05
Stock-in-trade	89.95	86.60
Work-in-Progress	390.06	457.02
Project work-in-progress	31.59	35.70
Waste	2.96	2.01
(B)	864.71	958.38
(Increase) / Decrease in Inventories (B-A)	161.64	93.67
Transfered from Capital Work-in-Progress	-	1.38
Adjustment on Consolidation	-	(25.60)
Total	161.64	69.45

Note 24 : Employee benefits expense

Particulars	Year Ended	Year Ended
	March 31, 2021	March 31, 2020
Salaries, wages, gratuity, bonus, commission, etc. (Refer note 34)	630.51	866.04
Contribution to provident and other funds (Refer note 34)	50.08	52.17
Welfare and training expenses	14.79	22.90
Share based payment to employees (Refer note 37)	1.13	1.13
Total	696.51	942.24

No ` in Crores tes to the Consolidated Financial Statements

Note 25 : Finance costs

Particulars	Year Ended	Year Ended
	March 31, 2021	March 31, 2020
Interest expense on Financial Liabilities
- Loans	185.44	189.31
- Debentures	16.10	16.28
- Lease Liability (Refer note 38)	13.45	18.11
- others	3.49	7.21
Exchange differences regarded as an adjustment to borrowing costs	5.71	4.14
Other borrowing cost	0.32	1.84
Total	224.51	236.89

Note 26 : Depreciation and amortization expense

Particulars	Year Ended March 31, 2021	Year Ended March 31, 2020
Depreciation on Property, plant and equipment (Refer note 5)	214.60	207.75
Depreciation on Investment properties (Refer note 6)	0.22	0.29
Amortization of Intangible assets (Refer note 7)	39.13	39.42
Depreciation of right of use assets	31.20	42.99
Total	285.15	290.45

Note 27 : Other expenses

Particulars	Year Ended	Year Ended
	March 31, 2021	March 31, 2020
Power and fuel	327.75	455.61
Stores consumed	344.91	520.32
Processing charges	172.76	238.19
Miscellaneous Labour charges	72.02	99.55
Rent (Refer note 38)	10.50	28.23
Insurance	13.74	10.93
Printing, stationery and communication	14.66	17.20
Commission, Brokerage and discount	26.49	27.36
Rates and taxes	12.33	10.20
Repairs :
To Building	2.75	3.43
To Machineries (including spares consumption)	62.62	123.04
To others	8.04	5.55
Freight, insurance and clearing charge	111.66	133.15
Advertisement and publicity	4.53	27.57
Software Expenses	1.18	11.27
Legal and Professional charges	28.38	38.43
Conveyance and Travelling expense	14.85	51.54
Director's sitting fees	0.05	0.04
Allowances for doubtful debts (Refer note 8 (b))	-	2.96
Allowances for doubtful advances	0.09	-
Bad debt written off	4.90	5.44
Sundry Advances written off	0.25	1.27
Sundry debits written off	0.42	0.01

N ` in Crores otes to the Consolidated Financial Statements

Note 27 : Other expenses (Contd.)

Particulars	Year Ended	Year Ended
	March 31, 2021	March 31, 2020

Auditor's remuneration (Refer note (i) below)	1.17	1.55
Bank charges	14.95	17.74
Corporate Social Responsibility expenses	6.89	6.05
Loss on sale of Property, plant and equipment (Net)	0.70	0.24
Property, plant and equipment written off	-	0.21
Exchange difference on Borrowing and others	7.43	(0.25)
Miscellaneous expenses	85.71	87.88
Total	1,351.73	1,924.71
(i) Break up of Auditor's remuneration
Payment to Auditors as
Auditors	1.16	1.30
For Other Services	-	0.23
For reimbursement of expenses	0.01	0.02
Total	1.17	1.55

Note 28 : Exceptional items

	Particulars	Year Ended March 31, 2021	Year Ended March 31, 2020
(a)	Retrenchment compensation	2.86	18.71
(b)	Impairment in Goodwill	13.18	-
(c)	Provision for Impairment in Investment/share application money	19.85	11.82
(d)	Reversal of Excise Duty Provision	-	(4.95)
	Impact Due to Covid19
(a)	Loss of Mark to market of derivative financial instruments	-	11.40
(b)	Allowance for doubtful receivable	-	6.94
(c)	Reversal of Benefit under Garment and Apparel Policy,2017	-	6.29
Total		35.89	50.21

Note 29 : Income tax

The major component of income tax expense for the years ended March 31, 2021 and March 31, 2020 are as follows:

Particulars	Year Ended	Year Ended
	March 31, 2021	March 31, 2020
Statement of Profit and Loss
Current income tax	11.20	64.67
Short provision related to earlier years
- Current income tax	(5.59)	12.01
- Deferred tax Credit	(0.86)	-
Deferred tax Credit	(8.27)	(0.99)
Income tax expense/(credit) in the statement of profit and loss	(3.52)	75.69
Statement of Other comprehensive income (OCI)
Current income tax	7.34	(1.69)
Deferred tax expense/(credit)	19.41	(25.39)
Income tax expense/(credit) recognised in OCI	26.75	(27.08)

Reconciliation of tax expense and the accounting profit multiplied by domestic tax rate for the year ended March 31, 2021 and March 31, 2020.

A. Current tax Note 29 : Income tax (Contd.)

Particulars	Year Ended	Year Ended
	March 31, 2021	March 31, 2020
Accounting profit before tax	(30.91)	167.79
Tax Rate	34.944%	34.944%
Current tax expenses on Profit before tax expenses at the enacted income tax rate in India	(10.80)	58.63
Adjustment
On account of reassessment of factory land ( refer note a below)	(65.62)	-
On account of revaluation of tax base of non-depreciable assets (due to indexation benefit)	(2.40)	(5.71)
Additional deduction for research and product development cost	-	(5.30)
Expenditure not deductible for tax/not liable to tax	(2.01)	1.44
Accelerated depreciation for tax purposes	0.02	0.16
Difference in tax rates for certain entities of the group	9.78	6.25
In respect of current income tax of previous years	-	0.06
Non-recognition of deferred tax assets due to absence of probable certainty of reversal in future	61.36	20.66
MAT credit pertaining to earlier years	(0.88)	1.72
Unused tax losses and credits	-	(12.28)
Impact of Ind AS 116	-	(0.17)
Short Provision of the earlier years	(5.57)	11.95
Other adjustments	12.60	(1.72)
Total income tax expense/(credit)	(3.52)	75.69
Effective tax rate	11.39	45.11

B. Deferred tax

The Group has accrued significant amounts of deferred tax. The majority of the deferred tax liability represents accelerated tax relief for the depreciation of property, plant and equipment and unused tax credit in the form of MAT credits carried forward. Significant components of Deferred tax assets and (liabilities) recognized in the financial statements of the Group as follows:

Particulars	Balance Sheet as at		Adjustment Due to Consolidation for the year ended on		Statement of Profit and Loss and OCIfor the year ended on		Balance Sheet as at
	March	March	March	March	March	March	March	March
	31, 2020	31, 2019	31, 2021	31, 2020	31, 2021	31, 2020	31, 2021	31, 2020
Accelerated depreciation for tax purposes		(241.55) (206.03)	-	-	5.47		(35.52) (236.08)	(241.55)
Impact of fair valuation of Land	(108.70)	(114.41)	-	-	68.02	5.71	(40.68) (108.70)
Provision for doubtful debt	9.39	7.49	-	-	-	1.90	9.39	9.39
Expenditure allowable on payment basis	23.09	16.51	-	-	(5.09)	6.58	18.00	23.09
Expenditure allowable over the period (Section 35D / 35DD)	15.23	15.05	-	-	(6.22)	0.18	9.01	15.23
Unused long-term capital loss	39.14	28.94	-	-	-	10.20	39.14	39.14
Unused losses available for offsetting against future
taxable income	34.65	13.78	-	0.36	(35.18)	20.51	(0.53)	34.65
Unused tax credit available for offsetting against future taxable
income (MAT Credit Entitlement)	167.79	189.52	-	-	(2.80)	(21.73)	164.99	167.79
Deferred tax on unrealised profit	3.40	4.16	-	-	(0.38)	(0.76)	3.02	3.40
Others	66.00	15.44	-	-	(34.10)	39.31	31.90	66.00
Deferred tax (expense)/income					(10.28)	26.38
Net deferred tax assets/(liabilities)	8.44	(29.55)	-	0.36			(1.84)	8.44

` in Crores

Note 29 : Income tax B. Deferred tax (Contd.)

The Group 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. Hence, deferred tax assets and liabilities which can not be offset, are presented separately as Deferred Tax Assets and Deferred Tax Liabilities. Details of the same are as under:

Particulars	Balance as at
	March 31, 2021	March 31, 2020	March 31, 2021	March 31, 2020
		Deferred tax assets	Deferred tax Liabilities
Accelerated depreciation for tax purposes	1.96	(9.97)	(238.04)	(231.58)
Impact of fair valuation of Land	-	-	(40.68)	(108.70)
Provision for doubtful debt	2.55	2.96	6.84	6.43
Expenditure allowable on payment basis	0.83	2.32	17.17	20.77
Expenditure allowable over the period (Section 35D / 35DD)	-	-	9.01	15.23
Unused long-term capital loss	-	-	39.14	39.14
Unused losses available for offsetting against future taxable income	(0.53)	34.65	-	-
Unused tax credit available for offsetting against future taxable income	1.32	2.26	163.67	165.53
Deferred tax on unrealised profit	-	-	3.02	3.40
Others	1.67	3.36	30.23	62.64
Total of Deferred Tax Assets/(Liabilities)	7.80	35.58	(9.64)	(27.14)

There are certain income-tax related legal proceedings which are pending against the Group. Potential liabilities, if any have been adequately provided for, and the group does not currently estimate any probable material incremental tax liabilities in respect of these matters. (Refer note 30).

The Group has unused tax capital losses amounting to 387.16 crores as at March 31, 2021 (March 31, 2020: 387.16 crores). Out of the same, tax credits on losses of 219.14 crores have not been recognised on the basis that recovery is not probable in the foreseeable future. Unrecognised tax capital losses will expire on March 31, 2025, if unutilized, based on the year of origination. `

Deferred income taxes are not provided on the undistributed earnings of subsidiaries and joint ventures where it is expected that earnings of the subsidiaries and joint ventures will not be distributed in the foreseeable future.

Note :

(a) At the time of transition to Indian Accounting Standards (Ind AS) with effect from April 1, 2015, the Parent Company had recognised fair value of its land parcels in its books of accounts and recognised deferred tax liability on such fair Valued Land as company expected sale of such land parcels on a piecemeal basis, delinked from the business.

During the year ended March 31, 2021, the Parent Company has reassessed the expected manner of recovery of the carrying value of all land parcels and has now determined that a number of such land parcels would not be delinked from the business as they either form an integral part of the business operations or are proximate to the factory premises. Consequently, the Parent Company currently expects that in the event of disposal of most of the land parcels in future, these would only be disposed off along with the business and in a slump sale arrangement thereby resulting in no temporary difference between the accounting position and position as per tax laws upon such future disposal.

Accordingly, the Parent Company has reversed deferred tax liability amounting to 65.62 crores pertaining to such land parcels in the Statement of Profit and loss during the year ended March 31, 2021. `

Notes to the Consolidated Financial Statements

Note 30 : Contingent liabilities

Particulars	As at March 31, 2021	As at March 31, 2020
Contingent liabilities not provided for
(i) Claims against Group not acknowledged as debts	10.91	7.52
(ii) Disputed demands in respect of
Excise and Customs duty	13.74	13.74
Value added tax and Central sales tax	18.62	16.61
Income tax (Refer note (d) below)	17.91	12.93
Service tax	8.77	10.75

Notes :

(a) It is not practicable for the Group to estimate the timing of cash outflows, if any, in respect of the above pending resolution of the respective proceedings.
(b) The Group does not expect any reimbursements in respect of the above contingent liabilities.
(c) The Group believes that the ultimate outcome of these proceedings will not have a material adverse effect on the Group's financial position and results of operations.
(d) During the year under the consideration, the Group has reassessed the position of its contingent liability pertaining to Income tax matters as at March 31, 2021 based on the advice received from its tax counsel. Many issues raised by Income tax department are either covered by judgement of respective judicial authorities in Group's own case in different assessment years or for other assesses, in favour of assesee, which supports Group's contention. Hence, considering the probability of occurrence as remote for such issues, the Group has not considered them as part of Contingent liability in the current year.

Note 31 : Capital commitment and other commitments

	Particulars	As at	As at
		March 31, 2021	March 31, 2020
(a)	Capital commitments
	Estimated amount of Contracts remaining to be executed on capital account and not	14.58	28.81
	provided for (net of advances)
(b)	Other commitments
	Export obligations against the import licenses taken for import of capital goods under	149.64	107.14
	the Export Promotion Capital Goods Scheme which is to be fulfilled over the period of
	next six years. If the Group is unable to meet these obligations, its liability would be `
	24.94 crores (March 31, 2020: ` 17.86 crores) which will reduce in proporation to actual
	exports. The Group is reasonably certain to meet its export obligations and expects no
	outflow, hence it does not anticipate a loss with respect to these obligations and
	accordingly has not made any provision in its financial statements.

Note 32 : Foreign Exchange Derivatives and Exposures not hedged

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

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.

Cash Flow Hedges

The Group 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 statements of profit or loss. These hedges have been effective for the year ended March 31, 2021 and March 31, 2020.

The Group 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 Group 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, 2021 and consequently may impact the statement of profit or loss for that year depending upon the change in the foreign exchange rates movements.

Note 32 : Foreign Exchange Derivatives and Exposures not hedged (Contd.)

A details of derivative contracts outstanding as at reporting date are as follows:

A. Foreign Exchange Derivatives

Nature of instrument	Currency		As at March 31, 2021				As atMarch 31, 2020
		Average Exchange Rate (in equivalent `) \| Amount<br>in<br>Foreign<br>currency<br>(in<br>Millions) \| Nominal<br>Amount<br>( in<br>` Crores)	MTM Value ( in `<br>Crores) \| Average<br>Exchange<br>Rate<br>(in<br>equivalent<br>` )	Amount in Foreign currency (in Millions)	Nominal Amount (`in<br>Crores) \| MTM<br>Value<br>(` in Crores)
Cash Flow Hedges
(Routed through OCI)
Forward Sales Contracts
Maturing less than 3 months	USD	74.82	40.65	304.16	4.87	73.12	27.41	200.41	(8.23)
Maturing between 3 to 6 months	USD	76.08	29.49	224.36	4.29	73.96	30.44	225.14	(8.23)
Maturing between 6 to 9 months	USD	76.35	32.25	246.22	2.87	74.17	21.16	156.94	(6.88)
Maturing between 9 to 12 months	USD	76.41	21.00	160.46	0.14	74.56	7.85	58.53	(2.69)
Total	USD		123.39	935.20	12.17		86.86	641.02	(26.03)
Maturing less than 3 months	GBP	-	-	-	-	95.23	0.44	4.19	0.08
Maturing between 3 to 6 months	GBP	-	-	-	-	-	-	-	-
Maturing between 6 to 9 months	GBP	-	-	-	-	-	-	-	-
Maturing between 9 to 12 months	GBP	-	-	-	-	-	-	-	-
Total	GBP		-	-	-		0.44	4.19	0.08
Option contracts*
Maturing less than 3 months	USD	-	-	-	5.51	-	-	-	(0.55)
Maturing between 3 to 6 months	USD	-	-	-	2.88	-	-	-	(2.23)
Maturing between 6 to 9 months	USD	-	-	-	1.41	-	-	-	(3.07)
Maturing between 9 to 12 months	USD	-	-	-	(1.03)	-	-	-	(3.88)
Maturing after 12 months	USD		-	-	(8.10)	-	-	-	-
Total Swap Deals	USD		-	-	0.67		-	-	(9.73)
Maturing less than 3 months		-	-	-	-	-	-	-	-
Maturing between 3 to 6 months		-	-	-	-	-	-	-	-
Maturing between 6 to 9 months		-	-	-	-	-	-	-	-
Maturing between 9 to 12 months		-	-	-	-	-	-	-	-
Maturing after 12 months		-	-	-	-	74.15	24.95	185.00	(5.01)
Total		-	-	-			24.95	185.00	(5.01)
Other Hedges
(Routed through Profit & Loss)
Forward Purchase Contracts
Maturing less than 3 months	USD	73.91	49.46	365.55	(0.72)	71.97	26.57	191.22	(10.63)
Maturing between 3 to 6 months	USD	75.10	10.38	77.95	(0.39)	-	-	-	-
Maturing between 6 to 9 months	USD	78.13	0.16	1.25	-	-	-	-	-
Maturing between 9 to 12 months	USD	76.15	0.96	7.31	(0.01)	-	-	-	-
Total	USD		60.96	452.06	(1.12)		26.57	191.22	(10.63)
Option contracts
Maturing less than 3 months	USD	-	-	-	-	74.19	9.00	66.77	(0.77)
Maturing between 3 to 6 months	USD	-	-	-	-	-	-	-	-
Maturing between 6 to 9 months	USD	-	-	-	-	-	-	-	-
Maturing between 9 to 12 months	USD	-	-	-	-	-	-	-	-
Total	USD		-	-	-		9.00	66.77	(0.77)

* Option contract are in the nature of zero premium option, hence nominal value as on the date of contract was Nil.

All derivative contracts stated above are for the purpose of hedging the underlying foreign currency exposure.

Note 32 : Foreign Exchange Derivatives and Exposures not hedged (Contd.)

B. Exposure Not Hedged

Nature of exposure	Currency		As at March 31, 2021		As at March 31, 2020
		FC In Mn	`in Crores \| FC In Mn \| in Crores<br>`
Receivables	USD	33.31	243.48	35.48	268.44
	EUR	1.24	10.58	1.59	13.16
	BIR	-	-	15.48	3.53
	AUD	0.03	0.15	0.05	0.21
	JPY	0.17	0.01	-	-
	GBP	0.26	2.65	0.97	9.06
Payable towards borrowings	USD	3.24	23.94	1.72	13.04
	EUR	0.19	1.62	0.28	2.29
Payable to creditors	USD	6.89	50.38	8.84	66.91
	EUR	0.60	5.08	0.73	6.07
	JPY	11.16	0.74	1.92	0.13
	GBP	0.07	0.69	0.17	1.61
	AUD	(AUD 4371)	0.02	(AUD 4341)	0.02
	CHF	0.01	0.11	0.03	0.23
	HKD	0.01	0.01	0.01	0.01

Note 33 : Segment Reporting

Operating Segments:

(a) Fabrics, Garments and Fabric Retail. Textiles :
(b) Human Protection fabric & garments, Industrial Products, Advance Composites and Automotive fabrics. Advanced Material :
(c) E-commerce, Agriculture Produce, EPABX and One to Many Radio, Water Treatment and Others. Others :

Segment revenue and results:

Segment assets and Liabilities:

AAssets 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 equipments, 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 group level.

The accounting policies of the reportable segments are the same as the Group's accounting policies described in note 3. The Group's borrowing and income taxes are reviewed on an overall basis and are not allocated to operating segments.

Notes to the Consolidated Financial Statements

Note 33 : Segment Reporting (Contd.)

Geographical segment

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

Summarised segment information for the years ended March 31, 2021 and March 31, 2020 are as follows:

Particulars	For the Year ended / As at March 31, 2021
	Textiles	Advanced Materials	Others	Elimin- ation	Total
REVENUE
External Revenue	3,985.92	677.84	409.22	-	5,072.98
Inter segment Revenue	11.43	1.63	25.01	(38.07)	-
Enterprise revenue	3,997.35	679.47	434.23	(38.07)	5,072.98
RESULT
Segment Result Before Finance cost	230.82	62.90	(34.63)	-	259.09
Less: Finance Cost					(224.51)
Less: Unallocable expenses (net of income)					(65.49)
Add: Tax Credit					3.52
Net profit/(loss) after tax	230.82	62.90	(34.63)	-	(27.39)
Segment Assets	4,644.55	544.71	805.26	(1,116.58)	4,877.94
Unallocated Assets					1,774.61
Investments in Joint Ventures					68.17
Total Assets	4,644.55	544.71	805.26	(1,116.58)	6,720.72
Segment Liabilities	1,638.72	149.31	288.00	(158.62)	1,917.41
Unallocated Liabilities					34.54
Total Liabilities	1,638.72	149.31	288.00	(158.62)	1,951.95
Depreciation and amortisation expense	203.82	25.72	29.22	-	258.76
Unallocated Depreciation and amortisation expense					26.39
Total Depreciation and amortisation expense	203.82	25.72	29.22	-	285.15
Capital Expenditure	47.81	30.75	9.25	-	87.81
Unallocated Capital Expenditure					34.02
Total Capital Expenditure (Refer note (a))	47.81	30.75	9.25	-	121.83
Material non-cash items other than Depreciation and amortisation	35.13	38.30	5.95	-	79.38
Unallocated Material non-cash items other than
Depreciation and amortisation					7.13
Total Material non-cash items other than Depreciation
and amortisation	35.13	38.30	5.95	-	86.51

Note 33 : Segment Reporting (Contd.)

` in Crores

Particulars		For the Year ended / As at March 31, 2020
	Textiles	Advanced	Others	Elimin-	Total
		Materials		ation
REVENUE
External Revenue	6,167.27	702.10	499.63	-	7,369.00
Inter segment Revenue	5.93	11.30	35.68	(52.91)	-
Enterprise revenue	6,173.20	713.40	535.31	(52.91)	7,369.00
RESULT
Segment Result Before Finance cost	414.44	75.08	(31.27)	-	458.25
Less: Finance Cost					(236.89)
Less: Unallocable expenses (net of income)					(53.57)
Less: Tax Expense					(75.69)
Net profit/(loss) after tax	414.44	75.08	(31.27)	-	92.10
Segment Assets	4,951.05	579.80	804.12	(1,060.33)	5,274.64
Unallocated Assets					1,802.50
Investments in Joint Ventures					88.30
Total Assets	4,951.05	579.80	804.12	(1,060.33)	7,165.44
Segment Liabilities	1,615.42	104.87	276.63	(146.90)	1,850.02
Unallocated Liabilities					93.45
Total Liabilities	1,615.42	104.87	276.63	(146.90)	1,943.47
Depreciation and amortisation expense	208.01	22.81	31.53	-	262.35
Unallocated Depreciation and amortisation expense					28.10
Total Depreciation and amortisation expense	208.01	22.81	31.53	-	290.45
Capital Expenditure	506.12	38.08	43.62	-	587.82
Unallocated Capital Expenditure					29.85
Total Capital Expenditure (Refer note (a))	506.12	38.08	43.62	-	617.67
Material non-cash items other than Depreciation and amortisation	41.69	14.28	12.04	-	68.01
Unallocated Material non-cash items other than
Depreciation and amortisation					12.36
Total Material non-cash items other than Depreciation
and amortisation	41.69	14.28	12.04	-	80.37

(a) Capital expenditure consists of additions to property, plant and equipment, intangible assets, investment properties, capital work-in-progress and Right of Use assets.

(b)

Particulars	Year Ended / As at	Year Ended / As at
	March 31, 2021	March 31, 2020
Segment Revenue*
(a) In India	2,510.37	4,169.49
(b) Rest of the world	2,562.61	3,199.51
Total	5,072.98	7,369.00
Carrying Cost of Segment Non Current Assets@
(a) In India	3,608.34	3,817.58
(b) Rest of the world	93.03	141.91
Total	3,701.37	3,959.49

* Based on location of Customers. @ Other than financial assets and deferred tax assets.

(c) Information about major customers:

Considering the nature of business of group in which it operates, the group deals with various customers including multiple geographic. No single customer has accounted for more than 10% of the group's total revenue for the years ended March 31, 2021 and 2020.

Notes to the Consolidated Financial Statements

Note 34 : Disclosure pursuant to Employee benefits

A. Defined contribution plans:

Amount of 39.60 Crores (March 31, 2020: 50.08 Crores) is recognised as expenses and included in note no. 24 "Employee benefit expense"

Particulars	Year Ended March 31, 2021	Year Ended March 31, 2020
(i) Contribution to Provident Fund [note (a)]	16.78	22.13
(ii) Contribution to Pension Fund [note (a)]	14.81	17.48
(iii) Contribution to Superannuation Fund [note (b)]	1.61	1.79
(iv) Contribution to Employees' State Insurance [note (c)]	6.40	8.68
Total	39.60	50.08

Note

(a) Employees of the Group, other than covered in Provident Fund Trust, receive benefits from a provident fund, which is a defined contribution plan. The eligible employees and the Group make monthly contributions to the provident fund plan equal to a specified percentage of the covered 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 Group 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 Group's Superannuation Fund is administered by approved Trust. The Group is required to contribute the specified amount to the Trust. The Group has no further obligations to the plan beyond its contribution to a Trust Fund.

(c) The Group's Employee State Insurance Fund, for all eligible employees, is administered by ESIC Corporation. The Group 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 Group has following post employment benefit plans which are in the nature of defined benefit plans:

(a) Gratuity

The Group operates a gratuity plan covering qualifying employees. The Group 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 salary multiplied for the number of years of service.

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. Gratuity benefits are both funded and unfunded. The Parent 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. Some of the subsidiaries make annual contribution to the gratuity scheme administered by the Life Insurance Corporation of India.

The Group 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) Company administered Provident Fund

(c) Compensatory Pension Scheme

2 0 2 0 - 2 0 2 1

Changes in defined benefit obligation and plan assets as at Disclosure pursuantto E Note 34 :		mployee benefits (Contd.)			March 31, 2021:											` inCrores
	As at	Increase due		Charged to statement of profit and loss										Remeasurement gains/(losses)in other comprehensive income			As at
Particulars	April1, 2020	to business combination	Service cost	Net interest expense /(income)	Reve- rsal of Liabi- lity **	statement of profit and loss Sub-total included in (note 24)	yees' Emplo- contri- bution	Emplo- yer's cont ribution	Transfer In	Benefit paid	plan assets (excluding amounts in net interest Return on included income)	arising Actuarial changes from changesin demog- raphic assum- ptions	changes arising changes assum- ptions Actuarial from in financial	arising Actuarial changes from changesin Experience adju- stments	Reve- rsal of Liabi- lity **	Sub-total included in OCI	31, March 2021
Gratuity - Funded
Defined benefit obligation	117.95	-	13.31	7.74	-	21.05	-	-	2.71	(18.83)	-	1.58	2.24	(8.82)	-	(5.00)	117.88
Fair value of plan assets	(113.62)	-	-	(7.46)	-	(7.46)	-	(3.49)	-	16.99	(15.67)	-	-	-	-	(15.67) (123.25)
Benefitliability/(asset)-Funded (A)	4.33	-	13.31	0.28	-	13.59	-	(3.49)	2.71	(1.84)	(15.67)	1.58	2.24	(8.82)	-	(20.67) (5.37)
Gratuity - Non Funded
Defined benefit obligation	2.76	-	1.60	0.14	-	1.74	-	-	-	(0.72)	-	0.01	0.05	(1.52)	-	(1.46)	2.32
Benefitliability/(asset)-Non Funded (B)	2.76	-	1.60	0.14	-	1.74	-	-	-	(0.72)	-	0.01	0.05	(1.52)	-	(1.46)	2.32
Net Benefitliability/(asset) (A+B)	7.09	-	14.91	0.42	-	15.33	-	(3.49)	2.71	(2.56)	(15.67)	1.59	2.29	(10.34)	-	(22.13) (3.05)
Medical benefits** Post employment
Defined benefit obligation	12.03	-	-		- (10.41)	(10.41)	-	-	-	-	-	-	-	-	(1.62)	(1.62)	-
Net Benefitliability/(asset)	12.03	-	-	-	(10.41)	(10.41)	-	-	-	-	-	-	-	-	(1.62)	(1.62)	-
Provident Fund Scheme
Defined benefit obligation	420.84	-	9.38	31.39	-	40.77	27.66	-	5.48 (76.09)		-	-	-	-	-	-	418.66
Fair value of plan assets	(420.94)	-	-	(31.39)	-	(31.39)	(27.66)	(9.38)	(5.48)	76.09	(9.20)	-	-	-	-	(9.20)(427.96)
Deficit/(Surplus)	(0.10)	-	9.38	-	-	9.38	-	(9.38)	-	-	(9.20)	-	-	-	-	(9.20)	(9.30)
Effects of asset ceiling, if any*	0.10	-	-	-	-	-	-	-	-	-	9.20	-	-	-	-	9.20	9.30
Net Benefitliability/(asset)	-	-	9.38	-	-	9.38	-	(9.38)	-	-	-	-	-	-	-	-	-
Compensatory Pension Scheme
Defined benefit obligation	1.61	-	0.04	0.10	-	0.14	-	-	-	-	-	0.03	0.01	(0.11)	-	(0.07)	1.68
Net Benefitliability/(asset)	1.61	-	0.04	0.10	-	0.14	-	-	-	-	-	0.03	0.01	(0.11)	-	(0.07)	1.68
Total benefitliability/(asset)	20.73	-	24.33	0.52 (10.41)		14.44	-	(12.87)	2.71	(2.56)	(15.67)	1.62	2.30	(10.45)	(1.62) (23.82)		(1.37)

mployee benefits (Contd.)

Disclosure pursuantto E














Note 34 :

Changes in defined benefit obligation and plan assets as at					March 31, 2020:
	As at	Increase due		Charged to statement of profit and loss										Remeasurement gains/(losses)in other comprehensive income			As at
Particulars	April1, 2019	to business combination	Service cost	Net interest expense /(income)	of Reve Liabi lity ** rsal	statement of profit and loss Sub-total included in (note 24)	yees' Emplo contri bution	Emplo yer's cont ribution	Transfer In	Benefit paid	plan assets (excluding amounts in net interest Return on included income)	arising Actuarial changes from changes in demog raphic assum ptions	changes arising changes assum ptions Actuarial from in financial	arising Actuarial changes from changesin Experience adju stments	of Reve Liabi lity ** rsal	Sub-total included in OCI	31, 2020 March
Gratuity - Funded
Defined benefit obligation	119.98	0.11	13.29	8.96	-	22.25	-	-	-	(21.54)	-	1.29	(0.65)	(3.49)	-	(2.85)	117.95
Fair value of plan assets	(131.55)	-	-	(9.83)	-	(9.83)	-	(0.41)	-	19.57	8.60	-	-	-	-	8.60 (113.62)
Benefitliability/(asset)-Funded (A)	(11.57)	0.11	13.29	(0.87)	-	12.42	-	(0.41)		(1.97)	8.60	1.29	(0.65)	(3.49)	-	5.75	4.33
Gratuity - Non Funded
Defined benefit obligation	1.52	-	1.17	0.11	-	1.28	-	-	-	(0.14)	-	(0.03)	0.02	0.11	-	0.10	2.76
Benefitliability/(asset)-Non Funded (B)	1.52	-	1.17	0.11	-	1.28	-	-		(0.14)	-	(0.03)	0.02	0.11	-	0.10	2.76
Net Benefitliability/(asset) (A+B)	(10.05)	0.11	14.46	(0.76)	-	13.70	-	(0.41)		(2.11)	8.60	1.26	(0.63)	(3.38)	-	5.85	7.09
Medical benefits** Post employment
Defined benefit obligation	16.05	-	0.40	1.20	-	1.60	-	-	-	(0.50)	-	(3.00)	(0.16)	(1.96)	-	(5.12)	12.03
Net Benefitliability/(asset)	16.05	-	0.40	1.20	-	1.60	-	-		(0.50)	-	(3.00)	(0.16)	(1.96)	-	(5.12)	12.03
Provident Fund Scheme
Defined benefit obligation	410.25	-	12.31	31.03	-	43.34	35.21	-	4.66	(72.62)	-	-	-	-		-	420.84
Fair value of plan assets	(411.07)	-	-	(31.03)	-	(31.03)	(35.21)	(12.31)	(4.66)	72.62	0.72	-	-	-			0.72 (420.94)
Deficit/(Surplus)	(0.82)	-	12.31	-	-	12.31	-	(12.31)	-	-	0.72	-	-	-	-	0.72	(0.10)
Effects of asset ceiling, if any*	0.82	-	-	-	-	-	-	-	-	-	(0.72)	-	-	-	-	(0.72)	0.10
Net Benefitliability/(asset)	-	-	12.31	-	-	12.31	-	(12.31)	-	-	-	-	-	-	-	-	-
Compensatory Pension Scheme
Defined benefit obligation	2.10	-	0.05	0.16	-	0.21	-	-	-	-	-	-	0.04	(0.74)	-	(0.70)	1.61
Net Benefitliability/(asset)	2.10	-	0.05	0.16	-	0.21	-	-		-	-	-	0.04	(0.74)	-	(0.70)	1.61
Total benefitliability/(asset)	8.10	0.11	27.22	0.60	-	27.82	-	(12.72)	-	(2.61)	8.60	(1.74)	(0.75)	(6.08)	-	0.03	20.73

*TheCompany has an obligation tomake good the shortfall, if any.

Themajor categories of plan assets ofthe fair value ofthe total plan assets ofGratuity are asfollows:

Particulars	March 31, 2021 As at	March 31, 2020 As at
	(%) oftotal plan assets	(%) oftotal plan assets
CentralGovernment Securities	% 0 0.0	0.00%
Public Sector/Financial Institutional Bonds	% 0 0.0	0.00%
Mutual Fund with Portfolio	% 9.97 9	99.97%
Others(including bank balances)	% 0.03	0.03%
(%) oftotal plan assets	% 0 10	100%

` inCrores

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

The major categories of plan assets of the fair value of the total plan assets of Provident Fund are as follows:

Particulars	As at March 31, 2021	As at March 31, 2020
	(%) of total plan assets	(%) of total plan assets
Government Securities (Central & State)	54.43%	55.34%
Public Sector and Private Sector Bonds	35.76%	36.35%
Portfolio with Mutual Fund	5.50%	5.60%
Others (including bank balances)	4.31%	2.71%
(%) of total plan assets	100%	100%

The principal assumptions used in determining above defined benefit obligations for the Group's plans are shown below:

Particulars	As at	As at
	March 31, 2021	March 31, 2020
Discount rate	3.86%-6.86%	5.21%-6.84%
Future salary increase	5.00%-8.50%	5.00%-10.00%
Medical cost inflation**	N/A	5.00%
Expected rate of return on plan assets	6.06%-6.84%	6.24%-6.84%
Attrition rate	7.00%-18.00%	7.00%-23.10%
Morality rate during employment	Indian assured lives	Indian assured lives
	Mortality (2006-08)	Mortality (2006-08)
Morality rate after employment	N/A	N/A

Assumptions used in determining the present value obligation of the defined benefit plan under the Deterministic Approach :

Particulars	As at	As at
	March 31, 2021	March 31, 2020
Discount rate	6.06%	6.56%
Average term to maturity of assets	6 years	5.16 years
Guaranteed rate of return	8.50%	8.50%

A quantitative sensitivity analysis for significant assumption is as shown below for the defined benefit plan:

Particulars	Sensitivity level	Increase / (decrease) in defined benefit obligation (Impact)
		Year ended March 31, 2021	Year ended March 31, 2020
Gratuity
Discount rate	1% increase	(4.46)	(5.92)
	1% decrease	4.93	6.70
Salary increase	1% increase	4.92	6.72
	1% decrease	(4.54)	(6.06)
Attrition rate	1% increase	0.04	0.29
	1% decrease	(0.06)	(0.36)
Post employment medical benefits**
Discount rate	1% increase	N/A	(0.84)
	1% decrease	N/A	0.82
Medical cost inflation	1% increase	N/A	0.69
	1% decrease	N/A	(0.60)
Attrition rate	1% increase	N/A	(0.36)
	1% decrease	N/A	0.47
Compensatory Pension Scheme
Discount rate	1% increase	(0.03)	(0.04)
	1% decrease	0.03	0.04

2020 - 2021

224

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

Maturity analysis (Expected undiscounted future benefit payments for the defined benefit plan)

Particulars	As at	As at
	March 31, 2021	March 31, 2020
Gratuity
Within the next 12 months	30.54	26.83
Between 2 to 5 years	55.02	47.04
From 6 to 10 years	43.11	50.54
	128.67	124.41
Post employment medical benefits**
Within the next 12 months	-	0.66
Between 2 to 5 years	-	2.86
From 6 to 10 years	-	8.51
	-	12.03
Compensatory Pension Scheme
Within the next 12 months	0.38	0.38
Between 2 to 5 years	1.52	1.23
From 6 to 10 years	-	-
	1.90	1.61

Weighted average duration of defined plan obligation (based on discounted cash flows)

Particulars	As at	As at
	March 31, 2021	March 31, 2020
	In Years	In Years
Gratuity	5	7
Post employment medical benefits	N/A	7
Compensatory Pension Scheme	3	3

The Group does not have any contributions expected towards planned assets for the next year.

C. Other Long term employee benefit plans:

Leave encashment

The Group has a policy on leave encashment which are both accumulating and non-accumulating in nature. The expected cost of accumulating leave encashment is determined by actuarial valuation performed by an independent actuary at each Balance Sheet date using projected unit credit method on the additional amount expected to be paid/availed as a result of the unused entitlement that has accumulated at the Balance Sheet date. Expense on non-accumulating compensated absences is recognized in the period in which the absences occur.

The Group has recognised following as expenses and included in note no. 24 "Employee benefit expense".

Particulars	Year Ended	Year Ended
	March 31, 2021	March 31, 2020
Leave Encashment	13.34	13.86
Total	13.34	13.86

During the year however, the company has revised the policy for post- medical benefits plan, as a result of which, the obligation to pay for medical benefits premium of retired employees has been shifted from the company to respective employees. Consequently, the company has reversed the outstanding provision for post-employment medical benefits in the current year. employment

` in Crores

Note 35 : Disclosure of Related Party Transactions in accordance with Ind AS 24 - Related Party Disclosures

(a)		Name of Related Parties and Nature of Relationship :
(I)		Key Management Personnel
	1	Mr. Sanjay S. Lalbhai	Chairman and Managing Director
	2	Mr. Jayesh K. Shah	Director & Chief Financial Officer
	3	Mr. Punit S. Lalbhai	Executive Director
	4	Mr. Kulin S. Lalbhai	Executive Director
	5	Mr. Bakul Harshadrai Dholakia	Non-Executive Director
	6	Mr. Dileep Chinubhai Choksi	Non-Executive Director
	7	Mr. Samir Uttamlal Mehta	Non-Executive Director (up to July 28, 2019)
	8	Ms. Renuka Ramnath	Non-Executive Director
	9	Mr. Vallabh Roopchand Bhansali	Non-Executive Director (up to May 10, 2019)
	10	Mr. Nilesh Dhirajlal Shah	Non-Executive Director
	11	Mr. Arpit Kantilal Patel	Non-Executive Director (w.e.f. May 17, 2019)
(II)		Relatives of Key Management Personnel
	1	Mrs. Jayshree S Lalbhai
	2	Mrs. Poorva P Lalbhai
	3	Mrs. Jaina K Lalbhai
		(III) Joint Ventures
	1	Arya Omnitalk Radio Trunking Services Private Limited
	2	Arudrama Developers Private Limited
	3	Arvind Norm CBRN Systems Private Limited
	4	Adient Arvind Automotive Fabrics India Private Limited
	5	PVH Arvind Manufacturing PLC, Ethiopia	w.e.f. October 1, 2019
		(IV) Limited Liability Partnership
(V)	1.	Arvind and Smart Value Homes LLP Subsidiaries
	1	Arvind Worldwide (M) Inc. *
	2	Arvind Overseas (M) Inc. *
	3	Arvind Spinning Limited *
	4	Arvind Foundation **
		(VI) Entities under the control of Key Managerial Personnel
	1	Aura Securities Private Limited
	2	Amplus Capital Advisors Private Limited
	3	Arvind Smartspaces Limited
	4	The Anup Engineering Limited
	5	Arvind Fashions Limited
	6	Arvind Lifestyle Brands Limited
	7	Arvind Beauty Brands Retail Private Limited
	8	Calvin Klein Arvind Fashion Private Limited
	9	Tommy Hilfiger Arvind Fashions Private Limited
	10	Arvind Youth Brands Private Limited	w.e.f. February 27, 2020
	11	White Ocean Business Ventures LLP
		(VII) Entity under the control of Non Executive Director
	1	Arvind Mills Employees' Provident Fund
	2	The Arvind Mills Employee's Gratuity Fund

* Not considered for the purpose of consolidation for the financial year 2020-21 and 2019-20 respectively being defunct status.

Lalbhai Group of Companies Officers' Superannuation Fund

** The Group has made investment of ` 0.01 Crores in the equity shares of Arvind Foundation, which is a Company incorporated under Section 8 of the Act for the sole purpose of CSR activities. Since the Group has no intention of earning variable returns from the voting rights, the above investment doesn't meet the definition of control under Ind AS 110 and hence, not consolidated in the Consolidated Financial Statements.

Disclosures (Contd.)
AS 24 - Related Party

with Ind
Transactions in accordance

Disclosure of Related Party	Balances :
	(b) Transactions and
Note 35 :

														` inCrores
Particulars		Subsidiaries		Ventures Joint	Partnership Liability Limited		Key Management Personnel and relatives		Trusts		Company under Key Managerial the control of Personnel		Total
		Year ended/as at		Year ended/as at	Year ended/as at		Year ended/as at		Year ended/as at		Year ended/as at		Year ended/as at
	31, 2021 March	31, 2020 March	31, 2021 March	31, 2020 March	31, 2021 March	31, 2020 March	31, 2021 March	31, 2020 March	31, 2021 March	31, 2020 March	31, 2021 March	31, 2020 March	31, 2021 March	31, 2020 March
(I) Transactions during the year
Purchase ofGoods	-	-	0.01	1.42	-	-	-	-	-	-	-	4.62	0.01	6.04
Sales ofGoods	0.09	-	0.30	0.01	-	-	-	-	-	-	8.48	42.51	8.87	42.52
Sale of Property, Plant and Equipment	-	-	-	-	-	-	-	-	-	-	0.04	-	0.04	-
Expenses Recovered	-	-	1.59	3.28	-	-	-	-	-	-	10.00	22.37	11.59	25.65
RentIncome	-	-	0.45	1.50	-	-	-	-	-	-	0.11	0.68	0.56	2.18
Services Rendered	-	-	0.87	2.88	-	-	-	-	-	-	8.97	9.35	9.84	12.23
Remuneration	-	-	-	-	-	-	3.94	11.28	-	-	-	-	3.94	11.28
Sitting Fees paid toNon-ExecutiveDirectors	-	-	-	-	-	-	0.05	0.04	-	-	-	-	0.05	0.04
mission toNon-ExecutiveDirectors Com	-	-	-	-	-	-	0.37	0.38	-	-	-	-	0.37	0.38
Services Received	-	-	4.34	2.58	-	-	-	-	-	-	5.30	2.99	9.64	5.57
Reimbursement of Expenses	-	-	-	-	-	-	-	-	-	-	4.15	18.28	4.15	18.28
mission Income Guarantee com	-	-	-	-	-	-	-	-	-	-	-	2.14	-	2.14
Share of ProfitfromLLP	-	-	-	-	(0.32)	(0.29)	-	-	-	-	-	-	(0.32)	(0.29)
Interest Expense	-	-	-	-	-	-	-	-	-	-	-	2.08	-	2.08
DonationGiven	8.38	2.00	-	-	-	-	-	-	-	-	-	-	8.38	2.00
ContributionGiven for Employee Benefit Plans	-	-	-	-	-	-	-	-	3.35	31.28	-	-	3.35	31.28
Repayment of Loan	-	-	-	-	-	-	-	-	-	-	-	44.36	-	44.36
Investmentmade	-	-	-	28.03	-	-	-	-	-	-	-	-	-	28.03
Provision of diminution in value ofinvestments	-	-	19.85	10.33	-	-	-	-	-	-	-	-	19.85	10.33
Withdrawal of capitalContribution	-	-	-	-	0.32	0.29	-	-	-	-	-	-	0.32	0.29
(II) Balances as at year end
Trade Receivable	(` 20,003/-)	-	1.10	4.58	-	-	-	-	-	-	49.32	54.27	50.42	58.85
Investments	0.34	0.34	41.81	41.75	56.46	56.88	-	-	-	-	-	-	98.61	98.97
Provision forImpairment ofInvestment	(0.33)	(0.33)	(30.10)	(10.33)	-	-	-	-	-	-	-	-	(30.43)	(10.66)
OtherCurrentAssets	0.01	0.01	2.78	2.13	-	-	-	-	6.49	-	7.35	2.91	16.63	5.05
OtherNonCurrentAssets	-	-	-	-	-	-	-	-	-	-	0.25	0.25	0.25	0.25
LoanGiven	5.23	5.23	-	-	-	-	-	-	-	-	-	-	5.23	5.23
Allowance forDoubtful Loan	(5.23)	(5.23)	-	-	-	-	-	-	-	-	-	-	(5.23)	(5.23)
Trade payables	-	-	0.45	0.52	-	-	0.34	-	0.13	-	13.99	11.22	14.91	11.74
Short TermProvision	-	-	-	-	-	-	-	-	1.44	5.05	-	-	1.44	5.05

Notes to the Consolidated Financial Statements

Note 35 : Disclosure of Related Party Transactions in accordance with Ind AS 24 - Related Party Disclosures (C0ntd.)

List of Related Parties Purpose Balance as at March 31, 2021 Arvind Worldwide (M) Inc. General Business Purpose 5.23 Less : Allowance for doubtful loan (5.23) - Balance as at March 31, 2020 Loans and Advances 5.23 (5.23) Total - (c) Loans and Advances in the nature of loans

List of Related Parties	Purpose		Maximum Outstanding During
		March 31, 2021	March 31, 2020
Loans and Advances Arvind Worldwide (M) Inc.	General Business Purpose	5.23	5.23

(d) Commitments with related parties

The Group has provided commitment of Nil Crores to the related party as at March 31, 2021 (March 31, 2020: 4.11 Crores)

(e) Transactions with key management personnel

The remuneration of key management personnel during the year was as follows :

Particulars	Year ended	Year ended
	March 31, 2021	March 31, 2020
Short-term employee benefits	3.80	11.13
Post employment benefits	0.30	0.25
Other long-term employment benefits	0.04	0.01
Others - Contribution towards Provident Fund	0.22	0.31
Total compensation paid to key management personnel	4.36	11.70

Note 36 : Earning per share:

Particulars		Year ended March 31, 2021	Year ended March 31, 2020
Profit for the year attributable to owners of the Company	` in Crores	(16.52)	95.65
Weighted average number of Equity Shares for Basic EPS (a)	No.	25,88,83,636	25,87,33,462
Effect of potential Ordinary shares on Employee Stock Options outstanding (b)	No.	3,85,758	86,648
Weighted average number of Equity Shares in computing diluted EPS (a) + (b)	No.	25,92,69,394	25,88,20,110
Nominal value of equity shares	`	10	10
Basic earning per share	`	(0.64)	3.70
Diluted earning per share	`	(0.64)	3.70

Note 37 : Share based payments

Arvind Limited (AL)

A. The Company has instituted Employee Stock Option Scheme 2008 (ESOS 2008), pursuant to the approval of the shareholders of the company at their extra ordinary general meeting held on October 23, 2007. Under ESOS 2008, the Company has granted options convertible into equal number of equity shares of the face value of ` 10 each to its certain employees. The following table sets forth the particulars of the options outstanding as on March 31, 2021 under ESOS 2008:

Scheme				ESOS 2008
Date of grant		May 23, 2014 August 22, 2016	October 25, 2019	August 31, 2020 August 31, 2020		August 31, 2020	August 31, 2020
Expiry Date			April 30, 2019 August 22, 2017 September 30, 2023	August 31, 2022	August 31, 2023	August 31, 2021	August 31, 2021
Number of options granted	10,50,000	9,00,000	2,00,000	6,50,000	6,50,000	1,11,750	9,00,000
Number of options outstanding	5,26,000	9,00,000	2,00,000	6,50,000	6,50,000	1,11,750	9,00,000
Exercise price per option	`57.51 \| 90.81<br>`	45.45 `\| 35.55<br>`	35.55 `\| 10.00<br>`	35.55 `
Fair Value of option on Grant date	36.65 `\| 14.00<br>`	13.31 `\| 18.95<br>`	11.98 `\| 23.97<br>`	8.07 `
Vesting period			Over a period of 1 to 5 years from the date of grant
Vesting requirements			On continued employment with the company and fulfilment of performance parameters.
Exercise period		1.75 to 5 years from the date of vesting
Method of settlement			Through allotment of one equity share for each option granted.

B. Movement in Stock Options during the year :

The following reconciles the share option outstanding at the beginning and at the end of the year :

Particulars		Year Ended March 31, 2021		Year Ended March 31, 2020
	No. of Options	Weighted Average Exercise Price	No. of Options	Weighted Average Exercise Price
Outstanding at the beginning of the year	19,83,000	69.12	15,76,000	76.53
Vested during the year	1,57,000	10.00	6,76,000	57.51
Granted during the year	23,11,750	34.31	5,57,000	45.04
Lapsed/Forfeited during the year	2,00,000	72.15	-	-
Exercised during the year	1,57,000	10.00	1,50,000	57.51
Outstanding at the end of the year	39,37,750	50.89	19,83,000	69.12
Exercisable at the end of the year	14,26,000	78.53	14,26,000	78.53

C. Share Options Exercised during the year:

Option Series	No. of Options	Exercise Date	Weighted Average Share Price at Exercise Date
Options exercised during the year	1,57,000	July 4, 2020	32.53

D. Share Options Outstanding at the end of the year:

The share options outstanding at the end of the year had a weighted average exercise price of 50.89 (as at March 31, 2020: 69.12) and a weighted average remaining contractual life of 3.58 Years (as at March 31, 2020: 3.42 years). The range of exericse price is from 10.00 to 90.81.

Note 37 : Share based payments (Contd.)

E. Significant Assumptions of Valuation on New Grant:

Weighted Average Information:

33.50
34.31
74.90%
4.27%
Any other inputs to the model None
Method used and the assumptions made to incorporate effects Binomial Option Pricing Model

(vii) How expected volatility was determined, including an The volatility of the Company's stock price on stock exchanges over
explanation of the extent of to which expected volatility the expected life of the options has been considered.
was based on historical volatility
(viii) Whether any or how any other features of option grant were None
incorporated into the measurement of fair value, such as

Arvind Internet Limited (AIL)

A. The Company has instituted Employee Stock Option Scheme 2015 ("ESOS 2015"), pursuant to the approval of the shareholders of the Company at their Extra Ordinary General Meeting held on October 12, 2015. Under ESOS 2015, up to March 31, 2021, the Company has granted 1,69,28,860 options convertible into equal number of Equity Shares of face value of 10 each. The following table sets forth the particulars of the options granted during the Financial Year 2020-21 under ESOS 2015 `

Scheme		ESOS 2015
Date of grant	April 1, 2020	April 1, 2019	October 15, 2015
Number of options granted	15,13,549	96,21,511	27,69,500
Exercise price per option	10 `\| 10<br>`	10 `
Vesting period	Over a period of 4 years	Over a period of 4 years	Over a period of 4 years
Vesting requirements	On continued employment with the company
Exercise period	Up to 5 years from the date of vesting
Method of settlement		Through allotment of one equity share for each option granted

The following table sets forth a summary of the activity of options:

Particulars	Year ended March 31, 2021	Year ended March 31, 2020
Options
Outstanding at the beginning of the year	1,35,71,591	57,93,800
Granted during the year	15,13,549	96,21,511
Lapsed during the year	1,51,636	18,43,720
Outstanding at the end of the year	1,49,33,504	1,35,71,591
Exercisable at the end of the year	1,12,33,634	81,02,734
Weighted average exercise price per option (`) \| 10<br>`	10 `
Weighted average remaining contractual life (Years)	6.24	7.06

` in Crores

Note 37 : Share based payments (Contd.)

Share options outstanding at the end of the year have the following expiry date , exercise price and weighted average contractual life of the options outstanding at the end of the year :

Grant date	Expiry date	Exercise price	March 31, 2021	March 31, 2020
			Share options	Share options
October 15, 2015	October 14, 2024	10 `	22,69,980	22,65,230
April 1, 2016	March 31, 2025	10 `	15,04,590	14,93,690
November 15, 2016	November 14, 2025	10 `	1,91,160	1,91,160
April 1, 2019	March 30, 2028	10 `	94,54,225	96,21,511
April 1, 2020	March 31, 2029	` 10	15,13,549	-
Weighted average remaining contractual life (Years)			6.24	7.06

AIL has granted 15,13,549 options during the year ended on March 31, 2021 (March 31, 2020 : 96,21,511). The fair value of the share based payment options granted is determined using the binomial model using the following inputs at the grant date which takes in to account the risk free rate of interest - 5.94%, expected life 4.16 year, and the expected price volatility of the underlying share - 20.32%, the expected dividend yield of 0%. Fair Value of the underlying share at the time of grant of the option ` 3.40 per share.

E. Expense arising from share- based payment transactions

Total expenses arising from share-based payment transactions recognised in profit or loss as part of employee benefit expense were as follows :

Particulars	Year ended	Year ended
	March 31, 2021	March 31, 2020
Share Based Payment to Employees	1.13	1.13

Note 38 : Leases

A. For transition, The Group has elected not to apply the requirements of Ind AS 116 to leases which are expiring within 12 months from the date of transition by class of asset and leases for which the underlying asset is of low value on a lease-by-lease basis. The Group has also used the practical expedient provided by the standard when applying Ind AS 116 to leases previously classified as operating leases under Ind AS 17 and therefore, has not reassessed whether a contract, is or contains a lease, at the date of initial application, relied on its assessment of whether leases are onerous, applying Ind AS 37 immediately before the date of initial application as an alternative to performing an impairment review, excluded initial direct costs from measuring the right of use asset at the date of initial application and used hindsight when determining the lease term if the contract contains options to extend or terminate the lease. The Group has used a single discount rate to a portfolio of leases with similar characteristics.

On transition, The Group recognised a lease liability measured at the present value of the remaining lease payments. The right of use asset is recognised at its carrying amount as if the standard had been applied since the commencement of the lease, but discounted using the lessee's incremental borrowing rate as at April 1, 2019. The weighted average incremental borrowing rate of 9% has been applied to lease liabilities recognised in the balance sheet at the date of initial application.

The difference between the future minimum lease rental commitments towards non-cancellable operating leases reported as at March 31, 2019 compared to the lease liability as accounted as at April 1, 2019 is primarily due to inclusion of present value of the lease payments for the cancellable term of the leases, reduction due to discounting of the lease liabilities as per the requirement of Ind AS 116 and exclusion of the commitments for the leases to which The Group has chosen to apply the practical expedient as per the standard.

The Group has adopted modified retrospective approach as per para C8 (C) (i) of 116, Leases to its leases effective from accounting period beginning from April 1, 2019 and recognised Right of Use assets and Lease Liability as on April 1, 2019 and difference between Right of Use Assets and Lease Liability, net of deferred tax amounting to 23.58 crores (Deferred Tax 11.25 crores) has been adjusted in retained earnings. Ind AS

The Group has taken land, factory buildings, godowns, offices, plant and machinaries and other facilities on lease. B.

` in Crores

Note 38 : Leases (Contd.)

Disclosures as per Ind AS 116 - Leases are as follows:

C. The changes in the carrying value of ROU assets for the year ended on March 31, 2021 are as follows :

Particulars	Land & Building	Others	Total
Balance at the beginning of the year	130.84	16.77	147.61
Additions during the year	7.11	-	7.11
Deletions/cancellation/modification during the year	(29.38)	(5.58)	(34.96)
Depreciation	(25.49)	(5.71)	(31.20)
Balance at the end of the year	83.08	5.48	88.56

The changes in the carrying value of ROU assets for the year ended on March 31, 2020 are as follows :

Particulars	Land & Building	Others	Total
Recognition of ROU Asset on account of adoption of Ind AS 116	151.75	54.79	206.54
Additions during the year	9.57	-	9.57
Deletions/cancellation/modification during the year	(1.62)	(23.13)	(24.75)
Depreciation	(28.86)	(14.89)	(43.75)
Balance at the end of the year	130.84	16.77	147.61

The aggregate depreciation expense on ROU assets is included under depreciation expense in the Statement of Profit and Loss.

D. The movement in lease liabilities are as follows :

Particulars	Year ended	Year ended
	March 31, 2021	March 31, 2020
Balance at the beginning of the year	184.67	-
Recognition of ROU Asset on account of adoption of Ind AS 116	-	241.37
Additions during the year	7.11	9.57
Deletions/cancellation/modification during the year	(42.03)	(26.40)
Finance cost accrued during the year	13.45	18.68
Payment of lease labilities	(44.02)	(58.55)
Balance at the end of the year	119.18	184.67

The break-up of current and non-current lease liabilities is as under :

Particulars	Year ended March 31, 2021	Year ended March 31, 2020
Current	23.98	35.49
Non Current	95.20	149.18
Total	119.18	184.67

E. The details of contractual maturities of lease liabilities on discounted basis are as follows:

Particulars	Year ended March 31, 2021	Year ended March 31, 2020
Less than one year	23.98	35.49
One to five years	75.61	108.68
More than five years	19.59	40.50
Total	119.18	184.67

Note 38 : Leases (Contd.)

F. The Group does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the obligations related to lease liabilities as and when they fall due.

G. The amount recognised in the statement of profit or loss are as follows:

Particulars	Year ended March 31, 2021	Year ended March 31, 2020
Depreciation expense of right of use assets	31.20	42.99
Interest expense on lease liabilities	13.45	18.11
Rent expense - short-term lease and leases of low value assets	10.50	28.23
Total	55.15	89.33

Note 39 : Disclosure in respect of Construction / Job work Contracts

Particulars	Year ended March 31, 2021	Year ended March 31, 2020
Amount of Contract Revenue recognized	108.21	139.48
Recognized and included in the financial statements as amounts due:
-from customers under construction contracts	18.87	20.44
-to customers under construction contracts	8.35	11.35
	10.52	9.09
Amount of Advance Received from Customers	63.64	17.18

Note 40 : Fair value measurements

(a) Financial Instruments by category

(i) Financial assets by category

				As at March 31, 2021					As atMarch 31, 2020
Particulars	Equity Method	Cost	Fair value through Profit and Loss (FVTPL)	Fair value through Other Compre hensive Income (FVTOCI)	At Amor tised cost	Total	Equity Method	Cost	Fair value through Profit and Loss (FVTPL)	Fair value through Other Compre hensive Income (FVTOCI)	At Amor tised cost	Total
Investments
- Equity shares	11.69	0.01	-	2.10	-	13.80	31.40	0.01	-	2.10	-	33.51
- Debentures	-	-	-	-	0.02	0.02	-	-	-	-	0.02	0.02
- Limited liability partnership	56.46	-	-	-	-	56.46	56.88	-	-	-	-	56.88
Trade receivables	-	-	-	-	1,091.67	1091.67	-	-	-	-	1,047.67	1047.67
Loans	-	-	-	-	50.84	50.84	-	-	-	-	40.45	40.45
Cash and cash equivalents	-	-	-	-	27.12	27.12	-	-	-	-	50.24	50.24
Other Bank balance	-	-	-	-	24.44	24.44	-	-	-	-	33.84	33.84
Other financial assets	-	-	-	23.76	130.71	154.47	-	-	-	0.11	166.36	166.47
Total Financial assets	68.15	0.01	-		25.86 1,324.80 1,418.82		88.28	0.01	-	2.21		1,338.58 1,429.08

` in Crores

Note 40 : Fair value measurements

(a) Financial Instruments by category (Contd.)

(ii) Financial liabilities by category

		As at March 31, 2021					As atMarch 31, 2020
Particulars	Fair value through Profit and Loss (FVTPL)	Fair value through Other Compre hensive Income (FVTOCI)	At Amortised cost	Total	Fair value through Profit and Loss (FVTPL)	Fair value through Other Compre hensive Income (FVTOCI)	At Amortised cost	Total
Borrowings	-	-	1,772.64	1,772.64	-	-	2,193.49	2,193.49
Lease Liabilities	-	-	119.18	119.18	-	-	184.67	184.67
Trade payables	-	-	1,400.26	1,400.26	-	-	1,259.86	1,259.86
Other financial liabilities	-	12.05	377.79	389.84	-	52.21	413.52	465.73
Total Financial Liabilities	-	12.05	3,669.87	3,681.92	-	52.21	4,051.54	4,103.75

For Financial instruments risk management objectives and policies, refer note 42.

Note 41 : Fair value disclosures for financial assets and financial liabilities:

Set out below is a comparison, by class, of the carrying amounts and fair value of the Group's financial instruments, other than those with carrying amounts that are reasonable approximations of fair values:

Particulars		Carrying amount	Fair value
	As at	As at	As at	As at
	March 31, 2021	March 31, 2020	March 31, 2021	March 31, 2020
Financial assets
Investments measured at fair value through OCI	2.10	2.10	2.10	2.10
Investments measured at amortised cost	0.02	0.02	0.02	0.02
Total	2.12	2.12	2.12	2.12
Financial liabilities
Borrowings at amortised cost	2,002.15	2,455.43	2,002.15	2,453.01
Total	2,002.15	2,455.43	2,002.15	2,453.01

The fair value of borrowings and other financial liabilities is calculated by discounting future cash flows using rates currently available for debts on similar terms, credit risk and remaining maturities.

For financial assets and financial liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

` in Crores

2020 - 2021

Notes to the Consolidated Financial Statements

Note 41 : Fair value disclosures for financial assets and financial liabilities (Contd.)

Fair value hierarchy

The following table provides the fair value measurement hierarchy of the Group's assets and liabilities as at March 31, 2021 and March 31, 2020.

Quantitative disclosures fair value measurement hierarchy for assets as at March 31, 2021 and March 31, 2020

Particulars			Fair value measurement using
	Total	Quoted prices in active markets (Level 1)	Significant observable inputs (Level 2)	Significant unobservable inputs (Level 3)
As at March 31, 2021
Assets measured at fair value
Fair value through Other Comprehensive Income
Investment in Equity shares, unquoted	2.10	-	-	2.10
Foreign exchange forward contracts
(Cash flow hedge)	23.76	-	23.76	-
As at March 31, 2020
Assets measured at fair value
Fair value through Other Comprehensive Income
Investment in Equity shares, unquoted	2.10	-	-	2.10
Foreign exchange forward contracts
(Cash flow hedge)	0.11	-	0.11	-

Fair value hierarchy

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

The Group'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 Group's activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Group's risk management assessment and policies and processes are established to identify and analyse the risks faced by the Group, 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 Group's activities.

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

(a) Market risk

Market risk refers to the possibility that changes in the market rates may have impact on the Group's profits or the value of its holding of financial instruments. The Group 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.

` in Crores

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

(a1) Interest rate risk

Interest rate risk refers to the possibility that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rate. The Group is exposed to interest rate risk on short-term and long-term floating rate instruments and on the refinancing of fixed rate debt. The Group'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 Group are principally denominated in Indian Rupees and US dollars 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, 2021, approximately 3.84% of the Group's Borrowings are at fixed rate of interest (March 31, 2020 : 8.94%).

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 Group's profit before tax is affected through the impact on floating rate borrowings as follows:

Particulars	Effect on profit before tax
	March 31, 2021	March 31, 2020
Increase in 50 basis points	(9.47)	(10.89)
Decrease in 50 basis points	9.47	10.89

(a2) Foreign currency risk

The Group's foreign currency risk arises from its foreign operations, investments in foreign subsidiaries, 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 Group. The major foreign currency exposures for the Group are denominated in USD and EURO.

Since a significant part of the Group'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 Group's performance. Exposures on foreign currency sales are managed through the Group's hedging policy, which is reviewed periodically to ensure that the results from fluctuating currency exchange rates are appropriately managed. The Group 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 Group may use forward contracts, foreign exchange options or currency swaps 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 Group. Hedge effectiveness is assessed on a regular basis.

Foreign currency sensitivity

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

Particulars	Change in		Effect on profit before tax
	Currency rate	in USD rate	in EURO rate	in GBP rate	in BIR rate
March 31, 2021	+2%	4.23	0.08	0.05	-
	-2%	(4.23)	(0.08)	(0.05)	-
March 31, 2020	+2%	3.74	0.24	0.15	0.07
	-2%	(3.74)	(0.24)	(0.15)	(0.07)

(b) Credit risk

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Group. 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 Group 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.

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

` in Crores

All trade receivables are subject to credit risk exposure. The Group'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 Group 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 Group does not expect any material risk on account of non-performance by any of the Group's counterparties. The Group 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 as of March 31, 2021 and March 31, 2020.

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

With respect to derivatives, the Group'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.

(c) Liquidity risk

Liquidity risk is defined as the risk that the Group 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 Group 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 Group closely monitors its liquidity position and deploys a robust cash management system.

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

The Group requires funds both for short-term operational needs as well as for long-term investment programmes mainly in growth projects The table below summarises the maturity profile of the Group's financial liabilities based on contractual undiscounted payments:

Particulars	< 1 year	>1 year but	>3 year but	more than	Total
		< 3 years	< 5 years	5 years
Year ended March 31, 2021
Interest bearing borrowings*	737.50	844.50	454.89	15.39	2,052.28
Lease liabilities	23.97	35.35	40.27	19.59	119.18
Trade payables	1,397.03	0.48	2.75	-	1,400.26
Other financial liabilities#	380.12	9.02	0.56	0.14	389.84
	2,538.62	889.35	498.47	35.12	3,961.56
Year ended March 31, 2020
Interest bearing borrowings*	1,301.28	825.54	288.59	78.26	2,493.67
Lease liabilities	35.49	62.25	46.43	40.50	184.67
Trade payables	1,251.10	1.63	2.10	-	1,254.83
Other financial liabilities#	455.11	0.41	0.50	0.43	456.45
	3,042.98	889.83	337.62	119.19	4,389.62

* 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 10.36 Crores (March 31, 2020 : 19.31 Crores).

Notes to the Consolidated Financial Statements

Note 43 : Capital management:

For the purpose of the Group's capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders of the Group. The primary objective of the Group'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 Group 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 Group 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 Group monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Group includes within net debt, interest bearing loans and borrowings less cash and short-term deposits (including other bank balance). The Group is not subject to any externally imposed capital requirements.

Particulars	As at March 31, 2021	As at March 31, 2020
(a) Interest bearing loans and borrowings (note 15)	2,002.15	2,455.43
(b) Less: cash and bank balance (including other bank balance and book overdraft)	(49.92)	(80.90)
(c) Net debt (a) - (b)	1,952.23	2,374.53
(d) Equity share capital (note 13)	258.92	258.77
(e) Other equity (note 14)	2,460.37	2,449.81
(f) Total capital (d) + (e)	2,719.29	2,708.58
(g) Total Capital and net debt (c) + (f)	4,671.52	5,083.11
(h) Gearing ratio (c)/(g)	41.79%	46.71%

In order to achieve this overall objective, the Group's capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any long term borrowing in the current period except for one loan. The Group has obtained letter from the lender before the date of adoption of financial statements for not accelerating the payment of this loan within one year from the balance sheet date subject to regularisation of the breach by end of March 31, 2022. Accordingly, the management has considered the classification of loan based upon the original repayment schedule.

No changes were made in the objectives, policies or processes for managing capital during the current period.

Note 44 : COVID - 19

World Health Organisation (WHO) declared outbreak of Coronavirus Disease (COVID-19) a global pandemic on March 11, 2020. Consequent to this, Government of India declared lockdown on March 23, 2020 and the Group temporarily suspended the operations in all the units of the Group in compliance with the lockdown instructions issued by the Central and State Governments. COVID-19 has substantially impacted the normal business operations of the Group by way of interruption in production, supply chain disruption, unavailability of personnel, closure/lock down of production facilities etc. during the lock-down period which has been extended till May 17, 2020. Production and supply of goods has commenced at various dates during the month of May 2020 and in a staggered manner during the year at some of the manufacturing locations of the Group after obtaining permissions from the appropriate government authorities. The Group has witnessed significant improvement in its operations during the second half of the year. Nearer to the year end, the operations of the Group were affected by the impact of the second wave of COVID-19 pandemic.

The Group has made detailed assessment of its liquidity position for the next 12 months, recoverability of its assets comprising of Property Plant and Equipment, Intangible assets, investments, inventories and trade receivables. Based on current indicators of future economic conditions and estimates made by the Management of the Group, the Group expects to recover the carrying amount of these assets.

As a result of the growing uncertainties with respect to COVID-19, the impact of this pandemic may be different from that estimated as at the date of approval of these financial results. The Group will continue to closely monitor any material changes to future economic conditions.

Notes to the Consolidated Financial Statements Note 45. Business Combination

` in Crores

The Group has acquired the Leasing division of "Amol Minechem Limited (formerly known as Amol Dicalite Limited)" w.e.f. November 8, 2019 at a consideration of 9.75 crores and the Weaving division of "Anveshan Textile Limited" w.e.f March 31, 2020 at a consideration of 1.00 crores. Value of net assets acquired is determined at 9.75 crores for Amol Minechem Limited and Value of net assets acquired is determined at 1.00 crores for Anveshan Textile Limited, consequently no goodwill has been recognized for both the acquisitions in accordance with Ind AS 103 – "Business Combination".

Amol Minechem Limited was engaged in the business of leasing of assets and Anveshan Textile Limited was engaged in the business of the Weaving Jobwork.

Based on the fair value of the assets acquired the purchase price paid has been allocated among various assets as below:

Particulars	Amol Minechem	Anveshan Textile	Total
	Limited	Limited
Assets:
Property, plant and equipment	9.17	42.13	51.30
Current Assets	0.99	1.53	2.52
Total Assets acquired (A)	10.16	43.66	53.82
Liabilities:
Non-current Liabilities	-	0.25	0.25
Current Liabilities	0.41	42.41	42.82
Total Liabilities assumed (B)	0.41	42.66	43.07
Net Identifiable Assets Acquired (A - B)	9.75	1.00	10.75

Note 46 : Interest in Other Entities

Sr.				Activities	Proportion of Ownership ofInterest
No.	Name of Entities	Country of Incorporation	Remarks		As at March 31, 2021	As at March 31, 2020
	Subsidiaries
	- Indian Subsidiaries
1	Arvind Envisol Limited (formerly known as
	Arvind Accel Limited)	India		Engineering	100%	100%
2	Syntel Telecom Limited	India		Telecom	100%	100%
3	Arya Omnitalk Wireless Solutions Private Limited	India		Telecom	50.06%	50.06%
4	Arvind PD Composites Private Limited	India		Technical Textile	51%	51%
5	Arvind OG Nonwovens Private Limited	India		Technical Textile	76.72%	74%
6	Arvind Goodhill Suit Manufacturing Private Limited	India		Garments	51%	51%
7	Arvind Internet Limited	India		E-Commerce	100%	100%
8	Arvind Sports Fashion Private Limited (Previously
	Known as Arvind Ruf & Tuf Private Limited)	India		Garments	100%	100%
9	Arvind Premium Retail Limited	India		Garments	51%	51%
10	Arvind True Blue Limited	India		Garments	87.50%	87.50%
11	Arvind Smart Textiles Limited	India		Textiles	100%	100%
12	Arvind BKP Berolina Private Limited (Previously
	known as Arvind Transformational Solutions
	Private Limited)	India		Textiles	100%	100%
13	Arvind Foundation	India	!	CSR Activity	100%	100%
14	Arvind Polser Engineered Composite Panels Private Limited	India		Technical Textile	60%	60%

	- Foreign Subsidiaries
15	Arvind Worldwide Inc.	USA		Textiles	100%	100%
16	Arvind Worldwide (M) Inc.	Mauritius	^	Textiles	100%	100%
17 18	Westech Advance Materials Limited Brillaries Inc.	Canada Canada	\$ ##	Textiles Textiles	100% 100%	100% 100%

19 20	Arvind Niloy Exports Private Limited Arvind Textile Mills Limited	Bangladesh Bangladesh		Textiles Textiles	70% 100%	70% 100%
21	Arvind Overseas (Mauritius) Limited	Mauritius	^	Textiles	100%	100%
22	Arvind Spinning Limited	Mauritius	^	Textiles	100%	100%
23	Arvind Lifestyle Apparel Manufacturing PLC	Ethiopia	\$	Garments	100%	100%
24	Arvind Envisol PLC	Ethiopia	&	Engineering	100%	100%
25	Arvind Enterprises (FZC)	U.A.E		Textiles	100%	100%
26	AJ Environmental Solutions Company	Chaina	*	Engineering	60%	60%
	- Limited Liability Partnerships
27	Maruti Ornet and Infrabuild LLP	India	#	Construction
28	Enkay Converged Technologies LLP	India	@	Telecom
	- Joint Ventures
29	Arya Omnitalk Radio Trunking Services
	Private Limited	India		Telecom	49.94%	49.94%
30	Arudrama Developments Private Limited	India		Construction	50%	50%
31	Arvind and Smart Value Homes LLP	India		Real Estate	50%	50%
32	Arvind Norm CBRN Systems Private Limited	India		Technical Textile	50%	50%
33	Adient Arvind Automotive Fabrics India
	Private Limited	India		Technical Textile	49.50%	49.50%
34	PVH Arvind Manufacturing PLC	Ethiopia	@@	Textiles	25%	25%

Note 46 : Interest in Other Entities (Contd.)

* Held by Arvind Envisol Limited.

@ Jointly held by Arvind Limited and Syntel Telecom Limited.
@@ Jointly held by Arvind Limited and Arvind Enterprises (FZC) ( Previous Year Jointly held by Arvind Limited and Arvind Worldwide Inc.)
Jointly held by Arvind Limited and Arvind Internet Limited.
Held by Westech Advanced Material Limited.
\$ Jointly held by Arvind Limited and Arvind Sports Fashion Private Limited (Previously Known as Arvind Ruf & Tuf Private Limited).
& Jointly held by Arvind Limited and Arvind Envisol Limited.
^ Not considered for the purpose of consolidation for the financial year 2020-21 and 2019-20 respectively being defunct status.
! The Group has made investment of ? 0.01 Crores in the equity shares of Arvind Foundation, which is a Company incorporated under Section 8 of the Act for the sole purpose of CSR activities. Since the Group has no intention of earning variable returns from the voting rights, the above investment doesn't meet the definition of control under Ind AS 110 and hence, not consolidated in the Consolidated Financial Statements.

Material party-owned subsidiaries : The Group does not have any subsidiaries that have non-controlling interests that are material to the group.

(A) Group's Share in Contingent Liability of Joint Ventures

Sr.	Particulars	As at 31st March, 2021	As at 31st March, 2020
1	Disputed Demand in respect of : Sales Tax	-	-
	Service Tax	0.44	0.44
2	Claims against the Company not acknowledged as debts	-	-

Note : The above figures are considered based on unaudited financial statements of the respective Joint Ventures.

` in Crores

Note 47 : Additional information pursuant to Schedule III of Companies Act 2013

` in Crores

	For the financial year ending on / as at March 31, 2021
Name of Entities	Net Assets i.e. Total Assets minus Total Labilities			Share in Profit or (loss)	Share in other Comprehensive Income			Share in Total Comprehensive Income
	As a % of consolidation net assets	Amount	As a % of consolidated Profit	Amount	As a % of consolidated OCI	Amount	As a % of consolidation Total Comprehensive Income	Amount
Parent :
Arvind Limited	103.60%	2,866.34	(560.96%)	92.67	190.25%	49.37	1506.26%	142.04
Subsidiaries :
- Indian
Syntel Telecom Limited	0.26%	7.11	(6.05%)	1.00	0.00%	-	10.60%	1.00
Arvind Envisol Limited	3.93%	108.77	(30.81%)	5.09	0.42%	0.11	55.14%	5.20
Arvind Internet Limited	0.40%	11.19	0.36%	(0.06)	0.00%	-	(0.64%)	(0.06)
Arvind PD Composites Private Limited	1.42%	39.19	(55.02%)	9.09	(0.04%)	(0.01)	96.29%	9.08
Arvind OG Nonwovens Private Limited	1.06%	29.35	(2.24%)	0.37	-	-	3.92%	0.37
Arvind Goodhill Suit Manufacturing Private Limited	0.16%	4.32	195.58%	(32.31)	1.97%	0.51	(337.22%)	(31.80)
Arvind Sports Fashion Private Limited (Previously
Known as Arvind Ruf & Tuf Private Limited)	(0.02%)	(0.43)	32.93%	(5.44)	0.00%	-	(57.69%)	(5.44)
Arvind Premium Retail Limited Arvind True Blue Limited	(0.57%) 0.11%	(15.85) 2.97	13.62% 75.06%	(2.25) (12.40)	0.00% 0.23%	- 0.06	(23.86%) (130.86%)	(2.25) (12.34)
Arvind Smart Textiles Limited	0.49%	13.45	317.49%	(52.45)	2.50%	0.65	(549.31%)	(51.80)
Arvind BKP Berolina Private Limited (Previously known as Arvind Transformational Solutions
Private Limited)	0.00%	-	0.00%	-	0.00%	-	0.00%	-
Arya Omnitalk Wireless Solutions Private Limited Arvind Polser Engineered Composite Panels	2.46%	68.17	(55.93%)	9.24	(0.19%)	(0.05)	97.45%	9.19
Private Limited	0.29%	8.03	18.89%	(3.12)	0.00%	-	(33.09%)	(3.12)
- Foreign
Arvind Worldwide Inc.	0.18%	5.10	6.23%	(1.03)	(0.54%)	(0.14)	(12.41%)	(1.17)
Westech Advance Materials Limited Brillaries Inc.,Canada	0.73% (0.00%)	20.23 (0.04)	86.99% 0.06%	(14.37) (0.01)	8.67% 0.00%	2.25 -	(128.53%) (0.11%)	(12.12) (0.01)
Arvind Niloy Exports Private Limited	(0.04%)	(1.19)	0.00%	-	0.12%	0.03	0.32%	0.03
Arvind Textile Mills Limited	0.00%	0.10	2.48%	(0.41)	(0.04%)	(0.01)	(4.45%)	(0.42)
Arvind Lifestyle Apparel Manufacturing PLC	3.38%	93.40	164.53%	(27.18)	(107.09%)	(27.79)	(582.93%)	(54.97)
Arvind Envisol PLC, Ethiopia	(0.26%)	(7.23)	33.47%	(5.53)	5.13%	1.33	(44.54%)	(4.20)
Arvind Enterprises (FZC)	(0.47%)	(12.99)	(1.51%)	0.25	(0.31%)	(0.08)	1.80%	0.17
AJ Environmental Solutions Company	0.03%	0.77	0.30%	(0.05)	0.15%	0.04	(0.11%)	(0.01)
- LLP
Maruti Ornet and Infrabuild LLP	0.00%	-	0.00%	-	0.00%	-	0.00%	-
Enkay Converged Technologies LLP	(0.59%)	(16.46)	26.21%	(4.33)	0.00%	-	(45.92%)	(4.33)
Sub Total		3,224.30		(43.23)		26.27		(16.96)
Less: Adjustment arising out of consolidation Total	(20.72%) 95.83%	(573.18) 2,651.12	(93.21%) 168.47%	15.40 (27.83)	(0.23%) 101.00%	(0.06) 26.21	162.69% (17.20%)	15.34 (1.62)
Add: Non Controlling Interest in Subsidiaries	1.71%	47.33	(65.80%)	10.87	(0.92%)	(0.24)	112.74%	10.63
Add: Joint Ventures (Investment as per
Equity method)
Arya Omnitalk Radio Trunking Services Private Limited	0.24%	6.51	(5.21%)	0.86	(0.08%)	(0.02)	8.91%	0.84
Arudrama Developments Private Limited	0.07%	2.05	0.00%	-	0.00%	-	0.00%	-
Arvind and Smart Value Homes LLP	2.04%	56.46	2.54%	(0.42)	0.00%	-	(4.45%)	(0.42)
Arvind Norm CBRN Systems Private Limited	0.00%	0.01	0.00%	-	0.00%	-	0.00%	-
Adient Arvind Automotive Fabrics India Private Limited	0.11%	3.14	0.00%	-	0.00%	-	0.00%	-
PVH Arvind Manufacturing PLC	0.00%	-	0.00%	-	0.00%	-	0.00%	-
Grand Total	100%	2,766.62	100%	(16.52)	100.00%	25.95	100%	9.43

Note 47 : Additional information pursuant to Schedule III of Companies Act 2013 (Contd.) ` in Crores

					For the financial year ending on / as at March 31, 2020
Name of Entities	Net Assets i.e. Total			Share in		Share in other	Share in Total
	Assets minus Total Labilities			Profit or (loss)		Comprehensive Income	Comprehensive Income
	As a % of consolidation net assets	Amount	As a % of consolidated Profit	Amount	As a % of consolidated OCI	Amount	As a % of consolidation Total Comprehensive Income	Amount
Parent :
Arvind Limited	100.44%	2,778.71	179.17%	171.38	79.30%	(49.92)	371.44%	121.46
Subsidiaries :
- Indian
Syntel Telecom Limited	0.22%	6.12	1.58%	1.51	0.00%	-	4.62%	1.51
Arvind Envisol Limited	3.74%	103.57	23.27%	22.26	0.10%	(0.06)	67.89%	22.20
Arvind Internet Limited	0.41%	11.25	(0.04%)	(0.04)	0.00%	-	(0.12%)	(0.04)
Arvind PD Composites Private Limited	1.09%	30.11	3.18%	3.04	0.00%	-	9.30%	3.04
Arvind OG Nonwovens Private Limited Arvind Goodhill Suit Manufacturing Private Limited	1.05% 1.31%	28.98 36.12	(2.85%) (15.78%)	(2.73) (15.09)	(0.03%) 0.10%	0.02 (0.06)	(8.29%) (46.33%)	(2.71) (15.15)
Arvind Sports Fashion Private Limited (Previously
Known as Arvind Ruf & Tuf Private Limited)	0.18%	5.01	(2.00%)	(1.91)	0.00%	-	(5.84%)	(1.91)
Arvind Premium Retail Limited	(0.49%)	(13.61)	(2.33%)	(2.23)	0.00%	-	(6.82%)	(2.23)
Arvind True Blue Limited	(1.80%)	(49.69)	(26.00%)	(24.87)	0.03%	(0.02)	(76.12%)	(24.89)
Arvind Smart Textiles Limited	0.55%	15.25	(26.86%)	(25.69)	0.46%	(0.29)	(79.45%)	(25.98)
Arvind BKP Berolina Private Limited (Previously
known as Arvind Transformational Solutions
Private Limited)	0.00%	-	(0.01%)	(0.01)	0.00%	-	(0.03%)	(0.01)
Arya Omnitalk Wireless Solutions Private Limited	2.13%	58.98	16.16%	15.46	0.52%	(0.33)	46.27%	15.13
Arvind Polser Engineered Composite Panels
Private Limited	0.40%	11.15	(0.61%)	(0.58)	0.00%	-	(1.77%)	(0.58)
- Foreign Arvind Worldwide Inc.	(0.59%)	(16.43)	0.84%	0.80	0.13%	(0.08)	2.20%	0.72
Westech Advance Materials Limited	1.17%	32.35	(3.77%)	(3.61)	4.50%	(2.83)	(19.69%)	(6.44)
Brillaries Inc.,Canada	0.00%	(0.02)	(0.02%)	(0.02)	0.00%	-	(0.06%)	(0.02)
Arvind Niloy Exports Private Limited	(0.04%)	(1.22)	0.00%	-	0.13%	(0.08)	(0.24%)	(0.08)
Arvind Textile Mills Limited	0.02%	0.52	(0.07%)	(0.07)	(0.06%)	0.04	(0.09%)	(0.03)
Arvind Lifestyle Apparel Manufacturing PLC	5.36%	148.37	(43.00%)	(41.13)	15.36%	(9.67)	(155.37%)	(50.80)
Arvind Envisol PLC, Ethiopia	(0.11%)	(3.03)	(1.65%)	(1.58)	(0.22%)	0.14	(4.40%)	(1.44)
Arvind Enterprises (FZC)	0.08%	2.17	1.76%	1.68	(0.17%)	0.11	5.47%	1.79
AJ Environmental Solutions Company	0.03%	0.78	(0.29%)	(0.28)	(0.08%)	0.05	(0.70%)	(0.23)
- LLP Maruti Ornet and Infrabuild LLP	0.00%	-	0.00%	-	0.00%	-	0.00%	-
Enkay Converged Technologies LLP	(0.44%)	(12.13)	(5.14%)	(4.92)	0.05%	(0.03)	(15.14%)	(4.95)
Sub Total		3,173.31		91.37		(63.01)		28.36
Less: Adjustment arising out of consolidation	(19.99%)	(553.01)	3.16%	3.02	0.17%	(0.11)	8.88%	2.91
Total	94.72%	2,620.30	98.69%	94.39	100.27%	(63.12)	95.61%	31.27
Add: Non Controlling Interest in Subsidiaries	2.10%	57.96	3.71%	3.55	(0.27%)	0.17	11.38%	3.72
Add: Joint Ventures (Investment as per
Equity method)
Arya Omnitalk Radio Trunking Services
Private Limited	0.20%	5.65	0.10%	0.10	0.00%	-	0.31%	0.10
Arudrama Developments Private Limited Arvind and Smart Value Homes LLP	0.07% 2.06%	2.05 56.88	0.00% (0.25%)	- (0.24)	0.00% 0.00%	- -	0.00% (0.73%)	- (0.24)
Arvind Norm CBRN Systems Private Limited	0.00%	0.01	0.00%	-	0.00%	-	0.00%	-
Adient Arvind Automotive Fabrics India
Private Limited	0.11%	3.14	0.00%	-	0.00%	-	0.00%	-
PVH Arvind Manufacturing PLC	0.74%	20.55	(2.25%)	(2.15)	0.00%	-	(6.57%)	(2.15)
Grand Total	100%	2,766.54	100%	95.65	100%	(62.95)	100%	32.70

Notes to the Consolidated Financial Statements

Note 48 : Expenditure on Research and Development

The Group has separate in- House Research and Development Centre at Naroda, Santej, Khatraj & Pune locations. All Centers are involved into new products development, new process development etc. and out of four locations, Naroda, Santej & Khatraj are duly recognized and approved by Department of Scientific and Industrial Research, Ministry of Science and Technology, Government of India. The details of Capital and Revenue Expenditure incurred on Research and Development by all Centers are as under:-

Particulars	Year ended	Year ended
	March 31, 2021	March 31, 2020
Naroda Centre
Capital Expenditure	-	-
Revenue Expenditure	2.82	3.68
Total Expenditure at Naroda Centre	2.82	3.68
Santej Centre
Capital Expenditure	-	3.19
Revenue Expenditure	12.67	22.43
Total Expenditure at Santej Centre	12.67	25.62
Khatraj Centre
Capital Expenditure	-	0.80
Revenue Expenditure	1.27	1.58
Total Expenditure at Khatraj Centre	1.27	2.38
Pune Centre
Capital Expenditure	-	-
Revenue Expenditure	1.21	1.59
Total Expenditure at Pune Centre	1.21	1.59
Total Research and Development Expenditure	17.97	33.27

Note 49 : Events Occurring After the Reporting Period :

The Group 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. As of May 26, 2021, there were no subsequent events and transactions to be recognized or reported that are not already disclosed.

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

Sanjay S. Lalbhai Jayesh K. Shah DIN: 00008329 DIN: 00008349

Chairman & Managing Director Director & Chief Financial Officer

R. V. Bhimani Company Secretary

Place: Date: Ahmedabad May 26, 2021

FORM AOC - 1

( Persuant to first proviso to sub - section ( 3 ) of section 129 read with rule 5 of Companies (Accounts) Rules, 2014 )

STATEMENT CONTAINING SAILENT FEATURES OF THE FINANCIAL STATEMENT OF SUBSIDIARIES/JOINT VENTURES

	` in crores Part "A" : Subsidiaries
Sr. no.	Name of Subsidiary	Reporting Period	Exchange Rate	Share Capital	Reserves & Surplus	Total Assets	Total Liabilities	Details of Invest ment	Turnover Profit/	(Loss) before Taxation	Provision for Taxation	Profit/ (Loss) after Taxation	Proposed Dividend	% of Share Holding

1	Arvind Internet Limited	March 31, 2021	INR	33.06	(21.87)	11.54	0.35	-	-	(0.06)	-	(0.06)	Nil	100%
2	Syntel Telecom Limited	March 31, 2021	INR	0.05	7.06	37.70	30.59	-	9.28	1.33	0.33	1.00	Nil	100%
3	Arvind PD Composites Private Limited	March 31, 2021	INR	0.31	38.88	71.31	32.12	-	89.76	12.71	3.62	9.09	Nil	51%
4	Arvind Envisol Limited (formerly known as Arvind Accel Limited)	March 31, 2021	INR	0.21	108.56	224.88	116.11	-	209.01	6.80	1.71	5.09	Nil	100%
5	Arvind Goodhill Suit Manufacturing Private Limited	March 31, 2021	INR	1.07	3.25	67.83	63.51	-	25.99	(24.28)	8.03	(32.31)	Nil	51%
6	Arvind OG Nonwovens Private Limited	March 31, 2021	INR	3.49	25.86	50.00	20.65	-	43.34	3.83	3.46	0.37	Nil	76.72%
7	Arvind Worldwide Inc. USA	March 31, 2021	1 USD = 73.11 `	2.20	2.90	5.21	0.11	-	6.34	(1.45)	(0.42)	(1.03)	Nil	100%
8	Arvind Lifestyle Apparel Manufacturing PLC, Ethiopia	March 31, 2021	1 ETB = 1.7854 `		261.29 (167.89)	132.70	39.30	-	64.77	(27.18)	-	(27.18)	Nil	100%
9	Arvind Textile Mills Limited, Bangladesh	March 31, 2021	1 TAKA = 0.8635 `	5.17	(5.07)	0.15	0.05	-	-	(0.41)	-	(0.41)	Nil	100%
10	Arvind Niloy Exports Private Limited, Bangladesh	March 31, 2021	1 TAKA = 0.8635 `	1.46	(2.65)	0.22	1.41	-	-	-	-	-	Nil	70%
11	Westech Advance Materials Limited, Canada	March 31, 2021	1 CAN\$ = 58.025 `	31.63	(11.41)	20.27	0.05	-	-	(14.77)	(0.40)	(14.37)	Nil	100%
12	Arvind Sports Fashion Private Limited (Previously Known as Arvind Ruf & Tuf
	Private Limited)	March 31, 2021	INR	0.95	(1.38)	93.33	93.76	-	-	(5.44)	-	(5.44)	Nil	100%
13	Arvind Premium Retail Limited	March 31, 2021	INR	0.02	(15.88)	0.46	16.32	-	-	(2.25)	-	(2.25)	Nil	51%
14	Arvind True Blue Limited	March 31, 2021	INR		81.01 (78.04)	39.61	36.64	-	11.71	(12.40)	-	(12.40)	Nil	87.50%
15	Arvind Smart Textiles Limited	March 31, 2021	INR	1.24	12.22	177.48	164.02	-	91.22	(41.22)	11.23	(52.45)	Nil	100%
16	Arvind Envisol PLC	March 31, 2021	1 ETB = 1.7854 `	1.28	(8.52)	29.39	36.63	-	0.79	(5.53)	-	(5.53)	Nil	100%
17	Brillaries Inc., Canada	March 31, 2021	1 CAN\$ = 58.025 ( 4,962) `\|`	(0.04)	-	0.04	-	-	(0.01)	-	(0.01)	Nil	100%
18	Arya Omnitalk Wireless Solutions Private Limited	March 31, 2021	INR	2.00	66.17	121.18	53.01	-	107.23	10.85	1.61	9.24	Nil	50.06%
19	Arvind Enterprises (FZC), U.A.E	March 31, 2021	1 AED = 19.905 `	0.34	2.01	60.06	57.71	15.34	112.64	0.25	-	0.25	Nil	100%
20	Arvind BKP Berolina Private Limited (Previously known as Arvind Transformational Solutions Private Limited)	March 31, 2021	INR	0.01	(0.01)	0.01	0.01	-	-	-	-	-	Nil	100%
21	Arvind Polser Engineered Composite Panels Private Limited	March 31, 2021	INR	0.48	7.55	24.01	15.98	-	2.27	(3.12)	-	(3.12)	Nil	60%
22	AJ Environmental Solutions Company, Chaina	March 31, 2021	1 CNY = 11.172 `	1.00	(0.23)	0.77	-	-	-	(0.05)	-	(0.05)	Nil	60%

Notes

( A ) Investments Exclude Investments in Subsidiaries and LLPs

( B ) The Following Subsidiaries are yet to commence operation :

[1] Arvind BKP Berolina Private Limited (Previously known as Arvind Transformational Solutions Private Limited)

[2] AJ Environmental Solutions Company, Chaina

( C ) In the above statement following Foreign Subsidiaries not included as they are treated as "Defunct Company".

[1] Arvind Spinning Limited

[2] Arvind Overseas (Mauritius) Limited
[3] Arvind Worldwide (M) Inc. Mauritius

FORM AOC - 1

( Persuant to first proviso to sub - section ( 3 ) of section 129 read with rule 5 of Companies (Accounts) Rules, 2014 )

STATEMENT CONTAINING SAILENT FEATURES OF THE FINANCIAL STATEMENT OF SUBSIDIARIES/JOINT VENTURES

Part "B" : Joint Venture ` in crores

Sr. no.	Particulars	Arya Omnitalk Radio Trunking Services Private Limited	Arvind Norm CBRN Systems Private Limited	Arudrama Developers Private Limited
		(a)	(b)	(c)
1	Latest Audited Balance Sheet Date	31-03-2021	31-03-2021	31-03-2021
2	Shares of Joint Ventures held by company on the year end i ) Number	10,05,000	5,000	50,000
	ii ) Amount of Investment in Joint Ventures	6.01	0.01	2.05
	iii ) Extend of Holding%	49.94%	50.00%	50.00%
3	Description of how there is significant influence	Note A	Note A	Note A
4	Reason why the joint venture is not consolidated	Not Applicable	Not Applicable	Not Applicable
5	Net worth attributable to shareholding as per latest
	Audited Balance sheet	6.50	( 34,547/-) `	2.04
6	Profit / ( Loss ) for the year
	i ) Considered in Consolidation ii ) Not Considered in Consolidation	0.84 -	Loss ( 35,737/-) `<br>- \| Loss ( 6,892/-)<br>` -

Note :

A There is Significant influence due to percentage(%) of Share Capital.

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

Sanjay S Lalbhai Jayesh K Shah R. V.Bhimani

Chairman & Director & Company Managing Director Chief Financial Officer Secretary DIN:00008329 DIN:00008349 Ahmedabad Ahmedabad Ahmedabad

LOCATIONS & SITES FOR THE YEAR 2019-20

Locations & Sites
Lifestyle Fabrics - Denim Arvind Limited Naroda Road Ahmedabad - 380025 Gujarat, India Tel : +91-79-68268000/ 68268164 Fax : +91-79-68268671 E-mail : [email protected]	Lifestyle Fabrics - Voiles Ankur Textiles Outside Raipur Gate Ahmedabad - 380022 Gujarat, India Tel : +91-79-68267200 Fax : +91-79-68267350 E-mail :[email protected]	Lifestyle Fabrics - Shirting, Khakis and Knitwear Arvind Limited PO Khatrej, Taluka Kalol Dist. Gandhinagar - 382721 Gujarat, India Tel : +91-2764-395000 Fax : +91-2764-395040 E-mail : [email protected]
Lifestyle Apparel - Knits Arvind Limited PO Khatrej, Taluka Kalol Dist. Gandhinagar - 382721 Gujarat, India Tel : +91-2764-395410 E-mail : [email protected]	Lifestyle Apparel - Jeans Arvind Limited "#26/2, 27/2, Kenchenahalli, Mysore Road Near Bangalore University Bangalore - 560059" Tel : +91-80-46819000 E-mail : [email protected]	Lifestyle Apparel - Shirts Arvind Limited # 63/9, Dodda Thogur Village Electronic City Hosur Road, Bangalore - 560100 Karnataka, India Tel : +91-80-40715000 E-mail : [email protected]
Arvind Limited Division Arvind Intex Rajpur Road, Gomtipur Ahmedabad - 380021 Gujarat, India Tel : +91-79-68269200 E-mail : [email protected]	Arvind Cotspin D-4, MIDC, Gokul Shirgaon Tal. Karveer, Kolhapur - 416234 Maharashtra, India Tel : +91-0231-2672455/56/57 E-mail : [email protected]
	Subsidiaries & Joint Ventures
Adient Arvind Automotive Fabrics India Private Limited Arvind Ltd. Premises, Santej / Khatraj Industrial Complex PO Khatraj Tal-Kalol, Dist- Gandhinagar - 382721 Gujrat, India Tel : 7011156814 E-mail : [email protected]	Arvind Goodhill Suit Manufacturing Private Limited Plot No. 50 B1 & 50 C1, Survey No. 299 Bommasandra Industrial Area Bangalore - 560099 Tel : 080-49461000 E-mail : [email protected]	Arvind PD Composites Private Limited Village: Moti Bhoyan, Tal-Kalol Dist - Gandhinagar - 382721 Gujrat, India Tel : 02764-675000 E-mail : [email protected]
Arvind OG Nonwovens Private Limited Block No. 315/p, Plot No. 92 Village : Kharanti, P.O. Simej Ta. Dholka, Dist. Ahmedabad - 382265 Gujarat, India Tel : 02714-304400 E-mail : [email protected]	Arvind Smart Textiles Limited Indus Industrial Park Plot No. 1, 2, 3, 4, 11, 12 & 13, SY No. 504 & 506, Opp. Pharma SEZ Sarkhej-Bavla Road, NH-8A Matoda, Sanand Ahmedabad, Gujarat, India • Tel : 8506085002 E-mail : [email protected]	Arvind Smart Textiles Limited Plot No. 253, 255 and 256, Ring Road Near Vinaika Shed, Rampur, Malti Ranchi - 834010 Tel : 9327438718 E-mail : [email protected]
Arvind Envisol Limited Arvind Mill Premises Naroda Road, Ahmedabad - 380025 Tel : 079-68266019/ 6038/ 6039 Fax : 079-68268677 E-mail : [email protected]; [email protected]	Arya Omnitalk Wireless Solutions Private Limited Corporate Office: Unit No. A202, 2nd Floor Summer Court, Magarpatta City, Pune - 411013 Tel : +91-20-67470100 (Board line) Fax : +91-20-67470199 E-mail : [email protected]	Arya Omnitalk Radio Trunking Services Private Limited Corporate Office: Unit No. A202, 2nd Floor Summer Court, Magarpatta City, Pune - 411013 Tel : +91-20-67470100 (Board line) Fax : +91-20-67470199 E-mail : [email protected]
Overseas Offices
Arvind Denim Lab (adlo) 525 7th Ave, Suite 1714, New York, NY - 10018 NY - 10018 Tel : 212-431-4256 E-mail: [email protected] Cell: 732-763-8179	Arvind Textile Mills Limited Plot # 221 Bir Uttam Mir Shawkat Road (Gulshan - Tejgaon Link Road) Tejgaon I/A Dhaka - 1208, Bangladesh	Arvind Lifestyle Apparel Manufacturing PLC Shed No. 5, Bole Lemi Industrial Zone Woreda 11, Bole Sub-city Addis Ababa, Ethiopia

Shareholders will be entitled to an additional

r--------------,

ARVLTD20 L---------------'

The process to avail the discount is as follows.

1. Please visit the website www.nnnow.com
1. Please register yourself and open an account by providing some details such as name. mobile number and email id.
1. Select the products that you want to purchase and add them to your cart.
1. At the check-out page- please enter ARVLTD20 in the space provided for "Apply Coupon Code" and apply.
1. You will receive an additional 20% discount on the cart value.
1. Choose your payment method. place order and complete the tr<msaction.

T&C:

1. The coupon code is valid up Lo 31SLJuly 2022.
2 No minimum purchase required.
1. fhe coupon code is valid against one tmnsaction only.
1. The coupon code rnnnol be rev<il ldated aftP.r Lile exriry d<t tP. has passed.
:>. Any disputes should be referred to the company and the decision of the company shall be final and binding. Disputes. if any. are subjectto Ahmedabad 1unsdict1on.

www.arvind.com

Naroda Road, Ahmedabad - 380 025

AI assistant

Arvind Ltd. — Annual Report 2021

59174_rns_2021-07-23_d607280e-2940-4533-8293-846fc5d7d3d4.pdf

BSE Limited

National Stock Exchange of India Limited

Subject: Submission of Annual Report for the financial year 2020-21.

Yours faithfully, For Arvind Limited

Risk Management Committee

Management Committee

Registered Office

Woven

81 M meters

679 Crores

At Arvind, we have well defined Sustainability approach and strategy, called Fundamentally Right.

Energy

Water

Chemicals

Cotton

People

Education

Rural Transformation

Livelihood Promotion through tribal home stay project

Inner Well Being

Promotion of lndology

Indigo Museum

Notice

ORDINARY BUSINESS

SPECIAL BUSINESS

Notes

17. Instructions for voting through electronic means (e-Voting):

X. Process and manner for Remote e-Voting:

Step 1: Access to NSDL e-Voting system

(A) Login method for e-Voting and joining virtual meeting for Individual shareholders holding securities in demat mode

2020 - 2021

How to Log-in to NSDL e-Voting website?

Step 2: Cast your vote electronically and join General Meeting on NSDL e-Voting system.

How to cast your vote electronically and join General Meeting on NSDL e-Voting system?

General Guidelines for shareholders

Process for those shareholders whose email ids are not registered with the depositories for procuring user id and password and registration of e mail ids for e-voting for the resolutions set out in this notice:

Instructions for members for e-Voting on the day of the AGM:

18. Instructions for Members to attend the AGM through VC/OAVM:

Item No. 3

Statement of Information for the members pursuant to Section II of Part II of Schedule V to the Companies Act:

I. GENERAL INFORMATION:

II. INFORMATION ABOUT THE APPOINTEE:

1. Past remuneration:

III. OTHER INFORMATION:

Item No. 4

Item No. 5 & 6

a) Brief description of the Scheme

b) The total number of options to be granted

c) Identification of classes of employees entitled to participate and be beneficiaries in the Scheme

d) Requirements of vesting and period of vesting

e) Maximum period within which the options shall be vested

f) Exercise price or pricing formula

g) Exercise period and process of exercise

h) Appraisal Process for determining the eligibility of Employees to the Scheme.

i) Maximum number of options to be issued per Employee and in the aggregate

o) Disclosure and accounting policies

p) Method of Valuation

q) Certificate from auditors

r) Other terms

Item No. 7

ANNEXURE TO ITEM NO 2 OF THE NOTICE

Details of Director seeking appointment and reappointment at the forthcoming Annual General Meeting

DIRECTORS' REPORT

1. FINANCIAL RESULTS

2. COMPANY'S PERFORMANCE

3. DIVIDEND

4. TRANSFER TO RESERVES

5. SHARE CAPITAL

6. EMPLOYEE STOCK OPTION SCHEME (ESOS)

7. DISCLOSURE UNDER SECTION 67(3)(C) OF THE COMPANIES ACT, 2013

8. FINANCE

9. FIXED DEPOSITS

10. NON-CONVERTIBLE DEBENTURES

11. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS UNDER SECTION 186

12. CONSOLIDATED FINANCIAL STATEMENTS

13. CORPORATE SOCIAL RESPONSIBILITY INITIATIVES

14. HUMAN RESOURCES

Arvind Ltd. Annual Report 2021