x) Provisions, Contingent Liabilities and Contingent Assets

A provision is recognised when the Company has a present obligation (legal or constructive)
as a result of past events and it is probable that an outflow of resources embodying economic
benefits will be required to settle the obligation, in respect of which a reliable estimate can be
made of the amount of obligation. Provisions (excluding gratuity and compensated absences)
are determined based on management’s estimate required to settle the obligation at the
Balance Sheet date. In case the time value of money is material, provisions are discounted
using a current pre-tax rate that reflects 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.
These are reviewed at each Balance Sheet date and adjusted to reflect the current
management estimates.

Contingent liabilities are disclosed in respect of possible obligations that arise from past
events, whose existence would be confirmed by the occurrence or non-occurrence of one or
more uncertain future events not wholly within the control of the Company. A contingent liability
also arises, in rare cases, where a liability cannot be recognised because it cannot be
measured reliably.

xi) Cash Flows

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

xi) Leases

The Company evaluates if an arrangement qualifies to be a lease as per the requirements of
Ind AS 116. Identification of a lease requires significant judgement. The Company uses
significant judgement in assessing the lease term (including anticipated renewals) and the
applicable discount rate.

The Company determines the lease term as the non-cancellable period of a lease, together
with both periods covered by an option to extend the lease if the Company is reasonably
certain to exercise that option; and periods covered by an option to terminate the lease if the
Company is reasonably certain not to exercise that option. In assessing whether the Company
is reasonably certain to exercise an option to extend a lease, or not to exercise an option to
terminate a lease, it considers all relevant facts and circumstances that create an economic
incentive for the Company to exercise the option to extend the lease, or not to exercise the
option to terminate the lease. The Company revises the lease term if there is a change in the
non-cancellable period of a lease.

The discount rate is generally based on the incremental borrowing rate specific to the lease
being evaluated or for a portfolio of leases with similar characteristics.

xii) Investments

Investment property is a property held to earn rentals and capital appreciation. Investment
property is measured initially at cost, including transaction costs. Subsequent to initial
recognition, investment property is measured in accordance with Ind AS 16’s requirements for
cost model.

Investment properties are derecognised either when they have been disposed of or when they
are permanently withdrawn from use and no future economic benefit is expected from their
disposal. The difference between the net disposal proceeds and the carrying amount of the
asset is recognised in profit or loss in the period of derecognition.

xiii) Foreign currency transactions

Transactions in foreign currencies are translated into the Company’s functional currency at
the exchange rates at the dates of the transactions.

Monetary assets and liabilities denominated in foreign currencies are translated into the
functional currency at the exchange rate at the reporting date. Non-monetary assets and
liabilities that are measured at fair value in a foreign currency are translated into the functional
currency at the exchange rate when the fair value was determined. Non-monetary items that
are measured based on historical cost in a foreign currency are translated at the exchange
rate at the date of the transaction. Foreign currency differences are generally recognised in
profit or loss.

The gain or loss arising on translation of nonmonetary 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).

xiv) Inventories

Inventories comprising Raw materials, work-in progress, stores and spares, loose tools,
traded goods and finished goods are stated at the lower of cost and net realisable value. Costs
of inventories are determined on a moving average.

Finished goods and work-in-progress include appropriate proportion of manufacturing
overheads at normal capacity and where applicable, duty. Net realisable value represents the
estimated selling price for inventories less all estimated costs of completion and costs
necessary to make the sale.

xv) Employee Benefits

(a) Post-employment benefit plans

Contributions to defined contribution retirement benefit schemes are recognised as expense
when employees have rendered services entitling them to such benefits.

For defined benefit schemes, the cost of providing benefits is determined using the Projected
Unit Credit Method, with actuarial valuations being carried out at each balance sheet date.
Actuarial gains and losses are recognised in full in the statement of profit and loss for the
period in which they occur. Past service cost is recognised immediately to the extent that the
benefits are already vested, or amortised on a straight-line basis over the average period until
the benefits become vested.

The retirement benefit obligation recognised in the balance sheet represents the present value
of the defined benefit obligation as adjusted for unrecognised past service cost, and as
reduced by the fair value of scheme assets. Any asset resulting from this calculation is limited
to the present value of available refunds and reductions in future contributions to the scheme.

b) Other employee benefits

The undiscounted amount of short-term employee benefits expected to be paid in exchange
for the services rendered by employees is recognised during the period when the employee
renders the service. These benefits include compensated absences such as paid annual
leave, overseas social security contributions and performance incentives.

Compensated absences which are not expected to occur within twelve months after the end
of the period in which the employee renders the related services are recognised as an
actuarially determined liability at the present value of the defined benefit obligation at the
balance sheet date.

c) Short term employee benefits

Short-term employee benefits are expensed as the related service is provided. A liability is
recognised for the amount expected to be paid if the Company has a present legal or
constructive obligation to pay this amount as a result of past service provided by the employee
and the obligation can be estimated reliably.

Accumulated compensated absences which are expected to be settled wholly within twelve
months after the end of the period in which the employees render the related service are
treated as short-term benefits. The Company measures the expected cost of such absences
as the additional amount that it expects to pay as a result of the unused entitlement that has
accumulated at the reporting date.

Defined contribution plans

Obligations for contributions to defined contribution plans are expensed as the related service
is provided. The company has following defined contribution plans:

(i) Provident fund

The Company makes specified monthly contributions towards Provident Fund and Employees
State Insurance Corporation (‘ESIC’). The contribution is recognized as an expense in the
Statement of Profit and Loss during the period in which employee renders the related service.

Defined benefit plans

The company’s net obligation in respect of defined benefit plans is calculated separately for
each plan by estimating the amount of future benefit that employees have earned in the current
and prior periods, discounting that amount and deducting the fair value of any plan assets.

The calculation of defined benefit obligations is performed annually by a qualified actuary
using the projected unit credit method. When the calculation results in a potential asset for the
company, the recognised asset is limited to the present value of economic benefits available
in the form of any future refunds from the plan or reductions in future contributions to the plan.
To calculate the present value of economic benefits, consideration is given to any applicable
minimum funding requirements.

Remeasurement of the net defined benefit liability, which comprise actuarial gains and losses,
the return on plan assets (excluding interest) and the effect of the asset ceiling (if any,
excluding interest), are recognised immediately in Other Comprehensive Income. Net interest
expense (income) on the net defined liability (assets) is computed by applying the discount
rate, used to measure the net defined liability (asset), to the net defined liability (asset) at the
start of the financial year after taking into account any changes as a result of contribution and
benefit payments during the year. Net interest expense and other expenses related to defined
benefit plans are recognised in profit or loss.

When the benefits of a plan are changed or when a plan is curtailed, the resulting change in
benefit that relates to past service or the gain or loss on curtailment is recognised immediately
in profit or loss. The company recognises gains and losses on the settlement of a defined
benefit plan when the settlement occurs

The company has following defined benefit plans:

Gratuity

The company provides for its gratuity liability based on actuarial valuation of the gratuity
liability as at the Balance Sheet date, based on Projected Unit Credit Method, carried out by
an independent actuary and contributes to the Gratuity Trust fund formed by the Company.
The contributions made are recognized as plan assets. The defined benefit obligation as
reduced by fair value of plan assets is recognized in the Balance Sheet. Remeasurements are
recognized in the Other Comprehensive Income, net of tax in the year in which they arise.

Other long-term employee benefits

The Company’s net obligation in respect of long-term employee benefits is the amount of
future benefit that employees have earned in return for their service in the current and prior
periods. That benefit is discounted to determine its present value. Re-measurements are
recognised in profit or loss in the period in which they arise.

The company has following long term employment benefit plans:

Leave Encashment

Leave encashment is payable to eligible employees at the time of retirement. The liability for
leave encashment, which is a defined benefit scheme, is provided based on actuarial valuation
as at the Balance Sheet date, based on Projected Unit Credit Method, carried out by an
independent actuary.

Note 32: Property, Plant and Equipment

Property, plant and equipment (including furniture, fixtures, vehicles, etc.) held for use in the
production or supply of goods or services, or for administrative purposes, are stated in the
balance sheet at cost less accumulated depreciation and accumulated impairment losses.
Cost of acquisition is inclusive of freight, duties, taxes and other incidental expenses. When
significant parts of plant and equipment are required to be replaced at intervals, the Company
depreciates them separately based on their specific useful lives. Freehold land is not
depreciated.

Capital work in progress is stated at cost, net of impairment loss, if any. Cost includes items
directly attributable to the construction or acquisition of the item of property, plant and
equipment, and, for qualifying assets, borrowing costs capitalised in accordance with the
Company’s accounting policy. Such properties are classified to the appropriate categories of
property, plant and equipment when completed and ready for intended use. Depreciation of
these assets, on the same basis as-other property assets, commences when the assets are
ready for their intended use.

Depreciation is recognised so as to write off the cost of assets (other than freehold land and
properties under construction) less their residual values over their useful lives, using the
straight-line method. The estimated useful lives, residual values and depreciation method are
reviewed at the end of each reporting period, with the effect of any changes in estimate
accounted for on a prospective basis.

Depreciation is charged on a pro-rata basis at the straight line method over estimated
economic useful lives of its property, plant and equipment generally in accordance with that
provided in the Schedule II to the Act as provided below and except in respect of moulds and
dies which are depreciated over their estimated useful life of 1 to 7 years, wherein, the life of
the said assets has been assessed based on technical advice, taking into account the nature
of the asset, the estimated usage of the asset, the operating conditions of the asset, past
history of replacement, anticipated technological changes, manufacturers warranties and
maintenance support, etc.

An item of property, plant and equipment is derecognised upon disposal or when no future
economic benefits are expected to arise from the continued use of the asset. Any gain or loss
arising on the disposal or retirement of an item of property, plant and equipment is determined
as the difference between the sales proceeds and the carrying amount of the asset and is
recognised in profit or loss. The useful lives for various property, plant and equipment are
given below:

Note 33: Disclosures as required under Section 22 of MSMED Act, 2006

The information regarding Micro Small Enterprises has been determined on the basis of
information available with the Company which is as follows:

Operating segments are reported in a manner consistent with the internal reporting provided
to the Chief Operating Decision Maker (“CODM”) of the Company. The CODM, who is
responsible for allocating resources and assessing performance of the operating segments,
has been identified as the Managing Director of the Company. The Company operates only in
one Business Segment i.e. “Decoration Business”, hence does not have any reportable
Segments as per Ind AS 108 “Operating Segments”.

Note 37 : Financial instruments - Fair values and risk management

The fair value of the financial assets are included at amounts at which the instruments
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 value

a) Fair value of cash and short-term deposits, trade and other short-term receivables, trade
payables, other current liabilities, approximate their carrying amounts largely due to the short¬
term maturities of these instruments

b) Financial instruments with fixed and variable interest rates are evaluated by the Company
based on parameters such as interest rates and individual credit worthiness of the
counterparty. Based on this evaluation, allowances are taken to account for the expected
losses of these receivables.”

A. Accounting classification and fair values

The carrying value and fair value of financial instruments by categories as at 31st March 2025
& 2024 were as follows:

B. Fair Value Hierarchy

The Company uses the following hierarchy for determining and disclosing the fair value of
financial instruments by valuation technique:

Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2: other techniques for which all inputs which have a significant effect on the recorded
fair value are observable, either directly or indirectly.

Level 3: techniques which use inputs that have a significant effect on the recorded fair value
that are not based on observable market data.

Financial Risk Management

Risk management framework

A wide range of risks may affect the Company’s business and operational / financial
performance. The risks that could have significant influence on the Company are market risk,
credit risk and liquidity risk. The Company’s Board of Directors reviews and sets out policies
for managing these risks and monitors suitable actions taken by management to minimise
potential adverse effects of such risks on the company’s operational and financial
performance.

Market risk

Market Risk is the risk that the fair value or future cash flows of a financial instrument will
fluctuate because of changes in market prices. Market risk comprises three types of risk:
currency risk, interest rate risk and other price risk.

Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a
financial instrument fails to meet its contractual obligations, and arises principally from the
Company’s trade and other receivables, cash and cash equivalents and other bank balances.
To manage this, the Company periodically assesses financial reliability of customers, taking
into account the financial condition, current economic trends and analysis of historical bad
debts and ageing of accounts receivable. The maximum exposure to credit risk in case of all
the financial instruments covered below is restricted to their respective carrying amount.

Note 38 : 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 Company
strives to safeguard its ability to continue as a going concern so that they can maximise returns
for the shareholders and benefits for other stake holders. The aim to maintain an optimal
capital structure and minimise cost of capital.

The Company manages its capital structure and makes adjustments in light of changes in
economic conditions and the requirements of the financial covenants. To maintain or adjust
the capital structure, the Company may return capital to shareholders, issue new shares or
adjust the dividend payment to shareholders (if permitted). Consistent with others in the
industry, the Company monitors its capital using the gearing ratio which is total debt divided
by total capital plus total debts.

Note : For the purpose of computing total debt to total equity ratio, total equity includes equity
share capital and other equity and total debt includes long term borrowings, short term
borrowings, long term lease liabilities and short term lease liabilities.

Note 39 : ADDITIONAL REGULATORY INFORMATION REQUIRED BY SCHEDULE III TO
THE COMPANIES ACT, 2013

1. The Company does not have any benami property held in its name. No proceedings have
been initiated on or are pending against the Company for holding benami property under the
Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

2. The Company has complied with the requirement with respect to number of layers as
prescribed under section 2(87) of the Companies Act, 2013 read with the Companies
(Restriction on number of layers) Rules, 2017.

3. Utilisation of borrowed funds and share premium

(i) 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:

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

b. Provide any guarantee, security or the like to or on behalf of the ultimate
beneficiaries.

(ii) 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:

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

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

4. There is no income surrendered or disclosed as income during the year in tax assessments
under the Income Tax Act, 1961 (such as search or survey), that has not been recorded in the
books of account.

5. The Company has not traded or invested in crypto currency or virtual currency during the
year.

6. The Company does not have any charges or satisfaction of charges which is yet to be
registered with Registrar of Companies beyond the statutory period except following charge
created but not satisfied as on date of report:

Previous year’s figures have been regrouped or reclassified, to conform to the current year’s
presentation wherever considered necessary.

For, S K Bhavsar & Co. For & on behalf of the Board of Directors of

Chartered Accountants Shangar Decor Limited

Firm Registration No. 145880W

Shivam Bhavsar Samirbhai Shah Saumil Shah

Proprietor (Managing Director) (Director & CFO)

Membership No. 180566 (DIN: 00787630) (DIN: 01601299)

UDIN: 25180566BM HTTA1052

Shubhangi Chourasia

Company Secretary

Place: Ahmedabad Place: Ahmedabad

Date: May 27, 2025 Date: May 27, 2025