Provisions and Contingencies

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

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 reimbursement will be received and the
amount of the receivable can be measured reliably.

GST input credit

GST input credit is accounted for in the books in the period in which the underlying service received is accounted
and when there is reasonable certainty in availing/ utilising the credits.

Segment Reporting

The Company is mainly engaged in manufacturing and sale of Vinyl Flooring, PVC Sheeting and Artificial leather
clothes. From the Operations of the Company, it is considered as a single business products and accordingly
segment reporting on business segment is not required. The Company has identified its geographical segments
based in the areas in which the customers of the company are located. However, it is not feasible to maintain
the accounts on the basis of geographical segments. Hence, segment reporting on geographical segments is not
prepared.

NOTE 4: RIGHT-OF-USE ASSETS
(Pursuant to Ind AS 116 — Leases)

A. Accounting Policy

The Company, as a lessee, recognises a Right-of-Use (ROU) asset and a corresponding Lease Liability at the commencement date
of every lease arrangement, except for short-term leases and leases of low-value assets.

Right-of-Use Assets are initially measured at cost, comprising the initial amount of the lease liability, any initial direct costs incurred,
and an estimate of costs to restore the underlying asset. ROU assets are subsequently carried at cost less accumulated depreciation
and accumulated impairment losses. Depreciation is charged on a straight-line basis over the shorter of the estimated useful life of
the asset or the lease term.

The Company applies the recognition exemption for short-term leases (lease term of 12 months or less at the commencement date)
and leases of low-value assets. Payments on such leases are recognised as an expense on a straight-line basis over the lease term
and are disclosed under Note 28 — Administrative and Other Expenses as ‘Lease Rent and Maintenance Charges’.

B. Nature of Leasing Arrangements

The Company holds long-term leasehold rights over industrial land at three manufacturing locations allotted by State Government
Industrial Development Corporations. Each arrangement conveys the right to control the use of an identified asset for a period of
time in exchange for consideration and accordingly qualifies as a lease under Ind AS 116. The details are as follows:

D. Key Assumptions and Judgements

(i) Lease term: The Company has determined the non-cancellable lease term for each UPSIDC and SIPCOT allotment as 99 years
from the respective commencement date, having regard to the significant capital investment made, the strategic importance of each
manufacturing location, and the absence of any economic incentive to vacate before expiry.

(ii) Short-term and low-value exemptions: The recognition exemptions under Ind AS 116 are applied to: (a) premises and equipment
taken on lease for periods of 12 months or less; and (b) office equipment of low individual value. Lease payments of Rs. 12.97 Lakhs
(Previous Year: Rs. 9.44 L.akhs) recognised as expense in respect of such arrangements are included in Note 28 — Administrative
and Other Expenses under ‘other expenses’.

E. Additional Disclosures

(i) There are no sale and leaseback transactions entered into during the current year or the previous year.

(ii) There are no variable lease payments that depend on an index or rate and are excluded from the measurement of lease

liabilities.

(iii) There are no lease commitments for leases not yet commenced.

(iv) The Company has not sub-leased any of its Right-of-Use assets.

(v) The total cash outflow in respect of leases during the year comprised lease payments made on long-term UPSIDC and

SIPCOT arrangements and short-term lease rent payments of Rs. 12.97 Lakhs (Previous Year: Rs. 9.44 Lakhs).

Security Premium Reserve

Security Premium Reserve is used to record the premium on issue of shares & utilised in accordance with the provisions of the ActGeneral Reserve
General Reserve represents appropriation of retained earnings and are available for distribution to shareholders.

Retained Earnings

Retained Earnings represents accumulated earnings of the Company & are available for distribution to Shareholders.

Other Reserve FVTOCI
Equity Instruments:

The Company has elected to recognise changes in the fair value of certain investments in equity securities in other comprehensive income. These
changes are accumulated within the FVTOCI reserve within equity
Employee benefits

It represents cummulative component of defined benefit costs recgnised in Profit & Loss under OCI.

The original demand of ? 183 Lakhs was raised by the Office of the Assistant Commissioner CGST, Division-VII, Ghaziabad vide
Order-in-Original No. 14/AC/CGST/Div-VII/GZB/2024-25 dated 30.01.2025. The Company filed an appeal before the Commissioner,
Appellate Authority, CGST (Appeals), Meerut vide Appeal No. 46-CGST/APPL-MRT/GZB/2025-26 dated 25.04.2025. Vide Order-
in-Appeal No. GZB/CGST/000/APPL-MRT/671/2025-26 dated 26.02.2026, the Appellate Authority partially allowed the appeal: (a)
Section 74 (extended period / fraud) invocation was SET ASIDE; (b) classification under HSN 3921 (GST @18%) was UPHELD; (c)
demand restricted to FY 2020-21 to 17.06.2022 with the revised confirmed demand at ? 98.58 Lakhs ( interest u/s 50 and penalty
u/s 73). Demand for FY 2017-18, 2018-19 and 2019-20 was DROPPED as time-barred under Section 73. The Company intends
to file a further appeal before GSTAT As at the date of this report, the appeal period has not expired; The Ministry of Finance has
issued Notification No. S.O. 4220(E) dated 17.09.2025, under section 112(1) of the CGST Act, 2017, provides that for all orders
communicated before 1 April 2026, the deadline to file a GSTAT appeal is 30 June 2026. As per management it is disclosed as a
contingent liability based on the intention to file the appeal before the expiry of the extended limitation period of 30 June 2026. The
Company continues to treat the matter as a contingent liability, based on independent tax advice, and no provision has been made.

Hence, the Company is in the process of filing an appeal with the GST Appellate Tribunal to contest the balance demand order
and seek total relief. At the time of filing the appeal before GSTAT, the Company shall be required to make a further pre-deposit
as prescribed under Section 112(8) of the CGST Act, 2017, in addition to the pre-deposit of ? 18.30 Lakhs already paid at the first
appellate stage under Section 107(6).

38. The disclosure required under Ind AS-19 “Employee Benefit”’ notified in the companies(Accounting Standards) Rules 2015,are
given below:

39: Liquidity Risk:-

The Company objective is to all times maintain optimum level of liquidity to meet its cash and colleteral requirement at all
times.

The Company relies on Borrowing and internal accruals to meet its need for fund.

The current lines of credit are suffcient to meet its short to medium term expansion needs and hence evaluates the
concentration of risk with respect to liquidity as low.

The table provides undiscounted cash flow towards financial liabilities into relevant maturity based on the remaining period
at balance sheet date to contractual maturity date.

44 - During the year the company transferred f 386441/-relating to unpaid dividend for the FY 2017-18 to “Investor’s’

Education Protection Fund”.

46 - There has been a resignation of the statutory auditors during the year due to merger into A D V AND CO LLP with
effect from February 2026.

47 - New Labour Codes — Impact on Employee Benefits

The Government of India, vide notifications published in the Official Gazette dated 21 November 2025, has brought into
effect four Labour Codes — the Code on Wages, 2019; the Industrial Relations Code, 2020; the Code on Social Security,
2020; and the Occupational Safety, Health and Working Conditions Code, 2020 — consolidating 29 existing central labour
laws.

The revised definition of ‘wages’ under the Labour Codes, which requires that basic wages constitute at least 50% of
the total remuneration, has potential implications for the measurement of employee benefit obligations including gratuity,
provident fund, ESIC contributions, and leave encashment. The Company has assessed the impact of the Labour Codes
on its employee benefit obligations, including obtaining an updated actuarial valuation of its gratuity liability as at 31 March
2026 based on the revised wage definition.

Based on this assessment, the Company has determined that the impact of the Labour Codes on its employee benefit
obligations is not material to its financial statements. Accordingly, no separate exceptional item or additional provision has
been recognised in these financial statements on account of the new Labour Codes.Except the inclusion of Fixed Term
Employees for gratuity eligibility amounting Rs 6,26,785 which has already been considered in provision made by the
company.