B.8 Provisions, Contingent Liabilities and Contingent Assets

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

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

Contingent liability is disclosed for possible obligations which will be confirmed only by future
events not within the control of the Company or present obligations arising from past events
where it is not probable that an outflow of resources will be required to settle the obligation or
a reliable estimate of the amount of the obligation cannot be made.

Contingent Assets are not recognized since this may result in the recognition of income that
may never be realized.

B.9 Financial instruments

Financial assets and financial liabilities are recognised when the Company becomes a party to
the contractual provisions of the instruments.

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.

Financial assets:

All regular way purchases or sales of financial assets are recognised and derecognised on a
trade date basis. Regular way purchases or sales are purchases or sales of financial assets that
require delivery of assets within the time frame established by regulation or convention in the
marketplace.

Classification of financial assets

The financial assets are initially measured at fair value. Transaction costs that are directly
attributable to the acquisition of financial assets are added to the fair value of the financial
assets on initial recognition.

After initial recognition:

(i) Financial assets (other than investments) are subsequently measured at amortised cost using
the effective interest method.

Effective interest method is a method of calculating the amortised cost of a debt instrument
and of allocating interest income over the relevant period. The effective interest rate is the rate
that exactly discounts estimated future cash receipts (including all fees and points paid or
received that form an integral part of the effective interest rate, transaction costs and other
premiums or discounts) through the expected life of the debt instrument, or, where
appropriate, a shorter period, to the net carrying amount on initial recognition.

Investments in debt instruments that meet the following conditions are subsequently measured
at amortised cost:

• The asset is held within a business model whose objective is to hold assets in order to
collect contractual cash flows; and

• the contractual terms of the instrument give rise on specified dates to cash flows that
are solely payments on principal and interest on the principal amount outstanding.

Income on such debt instruments is recognised in profit or loss and is included in the "Other
Income".

The Company has not designated any debt instruments as fair value through other
comprehensive income.

(ii) Financial assets (i.e. investments in instruments other than equity of subsidiaries) are
subsequently measured at fair value.

Such financial assets are measured at fair value at the end of each reporting period, with any
gains (e.g. any dividend or interest earned on the financial asset) or losses arising on re¬
measurement recognised in profit or loss and included in the "Other Income".

Investments in equity instruments of subsidiaries

The Company measures its investments in equity instruments of subsidiaries at cost in
accordance with Ind AS 27. At transition date, the Company has elected to continue with the
carrying value of such investments measured as per the previous GAAP and use such carrying
value as its deemed cost.

Impairment of financial assets:

A financial asset is regarded as credit impaired when one or more events that may have a
detrimental effect on estimated future cash flows of the asset have occurred. The Company
applies the expected credit loss model for recognising impairment loss on financial assets (i.e.
the shortfall between the contractual cash flows that are due and all the cash flows
(discounted) that the Company expects to receive).

De-recognition of financial assets:

The Company de-recognises a financial asset when the contractual rights to the cash flows from
the asset expire, or when it transfers the financial asset and substantially all the risks and
rewards of ownership of the asset to another party. If the Company neither transfers nor
retains substantially all the risks and rewards of ownership and continues to control the
transferred asset, the Company recognises its retained interest in the asset and an associated
liability for amounts it may have to pay. On de-recognition of a financial asset in its entirety, the
difference between the asset's carrying amount and the sum of the consideration received and
receivable is recognised in the Statement of profit and loss.

Financial liabilities and equity instruments

Equity instruments

Equity instruments issued by the Company are classified as equity in accordance with the
substance and the definitions of an equity instrument. An equity instrument is any contract that
evidences a residual interest in the assets of an entity after deducting all of its liabilities.
Financial liabilities

All financial liabilities are subsequently measured at amortised cost using the effective interest
method. The carrying amounts of financial liabilities that are subsequently measured at
amortised cost are determined based on the effective interest method. Interest expense that is
not capitalised as part of costs of an asset is included in the "Finance Costs".

The effective interest method is a method of calculating the amortised cost of a financial
liability and of allocating interest expense over the relevant period. The effective interest rate is
the rate that exactly discounts estimated future cash payments (including all fees and points
paid or received that form an integral part of the effective interest rate, transaction costs and
other premiums or discounts) through the expected life of the financial liability, or (where
appropriate) a shorter period, to the net carrying amount on initial recognition.

De-recognition of financial liabilities

The Company de-recognises financial liabilities when, and only when, the Company's
obligations are discharged, cancelled or have expired. An exchange between 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.

B. 10 Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss for the year attributable
to equity shareholders by the weighted average number of equity shares outstanding during
the year. For the purpose of calculating diluted earnings per share, the net profit or loss for the
year attributable to equity shareholders and the weighted average number of shares
outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

C. Critical Accounting judgements and key sources of estimation uncertainty

The preparation of financial statements in conformity with Ind AS requires the Company's
Management to make judgments, estimates and assumptions about the carrying amounts of
assets and liabilities recognised in the financial statements that are not readily apparent from
other sources. The judgements, estimates and associated assumptions are based on historical
experience and other factors including estimation of effects of uncertain future events that are
considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates (accounted on a prospective basis) and recognised in the period in which
the estimate is revised if the revision affects only that period, or in the period of the revision
and future periods of the revision affects both current and future periods.

The following are the key estimates that have been made by the Management in the process of
applying the accounting policies:

Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet
cannot be measured based on quoted prices in active markets, their fair value are measured
using valuation techniques. The inputs to these models are taken from observable markets
where possible, but where this is not feasible, a degree of judgement is required in establishing
fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and
volatility. Changes in assumptions relating to these factors could affect the reported fair value
of financial instruments.

Allowance for doubtful trade receivables

Trade receivables do not carry any interest and are stated at their nominal value as reduced by
appropriate allowances for estimated irrecoverable amounts.

Estimated irrecoverable amounts are derived based on a provision matrix which takes into
account various factors such as customer specific risks, geographical region, product type,
currency fluctuation risk, repatriation policy of the country, country specific economic risks,
customer rating, and type of customer, etc.

Individual trade receivables are written off when the management deems them not to be
collectable.

C. Terms/rights attached to equity shares

(A) The company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity shares is
entitled to one vote per share. The company declares and pays dividend in indian rupees. The dividend proposed by the
Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting . During the year
ended March 31, 2025, the amount per share of dividend recognised as distributions to equity share holders was Rs. NIL.

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

Note 3.1 : 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 objectives of the Company's capital
managmement is to ensure that it maintains a strong credit rating and healthy capital ratios in order to support its
business and maximise return to stakeholders through the optimisation of the debt and equity balance.

The Company determines the amount of capital required on the basis of annual planning and budgeting and
corporate plan for working capital, capital outlay and longterm product and strategic involvements. The funding
requirements are met through internal accruals and a combination of both long-term and short-term borrowings.

The Company monitors the capital structure on the basis of total debt (long term and short term) to equity and
maturity profile of the overall debt portfolio of the Company.

Note 3.2 : Financial Risk Management

In course of its business, the Company is exposed to certain financial risks that could have significant influence on
the Company's business and operational/ financial performance. These include market risk (including currency risk,
interest rate risk and price risk), credit risk and liquidity risk

The Board of Directors reviews and approves risk management framework and policies for managing these risks
and monitors suitable mitigating actions taken by the management to minimise potential adverse effects and
achieve greater predictability to earnings. In line with the overall risk management framework and policies, the
management monitors and manages risk exposure through an analysis of degree and magnitude of risks.

(i) Market Risk

Market risk is the risk that changes in market prices, liquidity and other factors that could have an adverse effect
on realizable fair values or future cash flows to the Company. The Company's activities expose it primarily to the
financial risks of changes in foreign currency exchange rates and interest rates as future specific market changes
cannot be normally predicted with reasonable accuracy.

(a) Foreign Currency Risk Management:

The Company undertakes transactions denominated in foreign currencies and thus it is exposed to exchange rate
fluctuations. The Company actively manages its currency rate exposures, arising from transactions entered and
denominated in foreign currencies, and uses derivative instruments such as foreign currency forward contracts to
mitigate the risks from such exposures. The company does not use derivative instruments to hedge risk exposure.

(b) Interest Rate Risk Management:

The Company is exposed to interest rate risk pertaining to funds borrowed at both fixed and floating interest
rates. The Company's risk management activities are subject to management, direction and control under the
framework of risk management policy of interest rate risk. The management ensures risk governance framework
for the company through appropriate policies and procedures and that financial risks are identified, measured and
managed in accordance with the Company's policies and risk objectives

For the company's total borrowings, the analysis is prepared assuming that amount of the liability outstanding at
the end of the reporting period was outstanding for the whole year.

(ii) Credit Risk

Credit risk refers to the risk that a counterparty or customer will default on its obligation resulting in a loss to the
company. Financial instruments that are subject to credit credit risk principally consist of Loans, Trade and Other
Receivables, Cash and Cash Equivalents, Investments and Other Financial Assets.

Credit risk encompasses both, the direct risk of default and the risk of deterioration of creditworthiness as well as
concentration of risk. The Company's exposure and the credit ratings of its counterparties are continuously
monitored and the aggregate value of transactions concluded is spread amongst approved counterparties.

Trade receivables consist of a large number of customers, spread across diverse industries and geographical areas.
The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are
located in several jurisdictions and operate in independent markets. Ongoing credit evaluation is performed on
the financial condition of accounts receivable and, where appropriate. The average credit period are generally in
the range of 14 days to 90 days. Credit limits are established for all customers based on internal rating criteria.

(iii) Liquidity Risk

The Company monitors its risk of shortage of funds through using a liquidity planning process that encompasses an
analysis of projected cash inflow and outflow.

The Company's objective is to maintain a balance between continuity of funding and flexibility largely through cash
flow generation from its operating activities and the use of bank loans. The Company assessed the concentration
of risk with respect to refinancing its debt and concluded it to be low. The Company has access to a sufficient
variety of sources of funding.

Note 3.4 : Related Party Transactions

Related party disclosures, as required by Ind AS 24, " Related Party Disclosures", are given below

(A) Particulars of related parties and nature of relationships

I. Companies/ partnership firms over which Key Management Personnel and their relatives are able to exercise

Gandhinagar Leasing & Finance Limited

II. Key Management Personnel

Chintan Rajyaguru
Khushbu Bharakatya
Alpaben Thummar

(B) Related Party transactions and balances

The details of material transactions and balances with related parties (including those pertaining to discontinued
operations) are given below:

Note 3.7 : Other Notes

1. Events occuring after balance sheet date

As on 31st March, 2025, the company has carried forward outstanding creditors named Cenges Tiles Limited of Rs.
207.28 Lacs from previous year. Against which, the company has received order from NCLT, Ahmedabad Bench in its
favour with no claim as on dated 30th June 2025.

2. Outstanding Balance of unsecured loans, borrowings, trade receivables, trade payables and any other outstanding
balances including all squared up accounts are subject to confirmation and reconciliation.

3. Previous Year Figures have been regrouped, rearranged, recalculated and reclassified whenever required.

5. Additional Regulatory Information

a) The Company does not have any benami property where any proceedings have been initiated on or are pending
against the Company for holding benami property under the Benami Transactions (Prohibitions) Act, 1988 (45 of 1988)
and rules made thereunder.

b) The Company has not been declared wilful defaulter by any bank or financial institution or government or any
government authority.

c) The Company has not entered into any scheme of arrangement which has an accounting impact on current or
previous financial year.

d) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign
entities (Intermediaries) with the understanding that the Intermediary shall:

- directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Company (Ultimate Beneficiary) or

- provide any guarantee, security or the like to or on behalf of the ultimate beneficiary.

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

- directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Funding Party (Ultimate Beneficiaries) or

- provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

f) The Company does not have any transaction which is not recorded in the books of accounts that has been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as,
search or survey or any other relevant provisions of the Income tax Act, 1961.

g) The Company has not traded or invested in crypto currency or virtual currency during the year under review.

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

i) The Company has no transactions with the Companies struck off under section 248 of the Companies Act, 2013 or
section 560 of the Companies Act, 1956.