2.10 Provisions, Contingent Liabilities and
Contingent Assets:

General

A provision is recognized if, as a result of a
past event, the Company has a present legal
or constructive obligation that is reasonably
estimable, and it is probable that an outflow
of economic benefits will be required to settle
the obligation. If the effect of time value of
money is material, Provisions are determined
by discounting the expected future cash flows
at a pre-tax rate that reflects current market
assessments of the time value of money and the
risks specific to the liability.

Warranty provisions

Provisions for warranty-related costs are
recognised when the product is sold to the
customer. Initial recognition is based on historical
experience. The initial estimate of warranty-
related costs is revised annually.

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 recognized 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 recognized 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 neither recognized nor
disclosed except when realisation of income is
virtually certain, related asset is disclosed.

2.11 Revenue Recognition:

Revenue from sale of goods is recognised when
all the control of the goods are transferred to
the customer at an amount that reflects the
consideration to which the Company expects
to be entitled in exchange for those goods
or services. Revenue towards satisfaction of
a performance obligation is measured at the
amount of transaction price (net of variable
consideration) allocated to that performance
obligation. The transaction price of goods sold and
services rendered is net of variable consideration
on account of various discounts, schemes, Goods
and Service Tax (GST) offered by the Company as
part of the contract.

Dividend income on investments is recognised
when the right to receive dividend is established.

Interest income is recognized on a time
proportionate basis taking into account the
amounts invested and the rate of interest. For
all financial instruments measured at amortised
cost, interest income is recorded using the
effective interest rate method to the net carrying
amount of the financial assets."

2.12 Employee Benefits

(a) Short-term employee benefits

All employee benefits payable wholly within
twelve months of rendering the service are
classified as short-term employee benefits
and they are recognized in the period in which
the employee renders the related service.
The Company recognizes the undiscounted
amount of short-term employee benefits
expected to be paid in exchange for services
rendered as a liability (accrued expense) after
deducting any amount already paid.

(b) Post-employment benefit plans

Defined contribution plans

Defined contribution plans are employee
state insurance scheme and Government
administered pension fund scheme for all
applicable employees.

Recognition and measurement of defined
contribution plans:

The Company recognizes contribution
payable to a defined contribution plan as an
expense in the Statement of Profit and Loss
when the employees render services to the
Company during the reporting period. If the
contributions payable for services received
from employees before the reporting date
exceeds the contributions already paid, the
deficit payable is recognized as a liability after
deducting the contribution already paid. If
the contribution already paid exceeds the
contribution due for services received before
the reporting date, the excess is recognized
as an asset to the extent that the prepayment
will lead to, for example, a reduction in future
payments or a cash refund.

Defined benefit plans

Gratuity scheme(unfunded):

Gratuity is a post employment benefit
and is a defined benefit plan. The cost of
providing defined benefits is determined
using the Projected Unit Credit method
with actuarial valuations being carried out
at each reporting date. The defined benefit
obligations recognized in the Balance Sheet
represent the present value of the defined
benefit obligations as reduced by the fair
value of plan assets, if any. Any defined
benefit asset (negative defined benefit
obligations resulting from this calculation) is
recognized representing the present value
of available refunds and reductions in future
contributions to the plan.

Recognition and measurement of defined
benefit plans

All expenses represented by current service
cost, past service cost, if any, and net interest
on the defined benefit liability / (asset) are
recognized in the Statement of Profit and Loss.
Remeasurements of the net defined benefit
liability / (asset) comprising actuarial gains
and losses and the return on the plan assets
(excluding amounts included in net interest
on the net defined benefit liability/asset), are
recognized in Other Comprehensive Income.
Such remeasurements are not reclassified
to the Statement of Profit and Loss in the
subsequent periods.

2.13 Income Taxes:

Tax expense is the aggregate amount included in
the determination of profit or loss for the period
in respect of current tax and deferred tax.

Current tax

Current tax is the amount of income taxes payable
in respect of taxable profit for a period. 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 under the Income
Tax Act, 1961. Current tax is measured using tax
rates that have been enacted or substantively
enacted by the end of reporting period for the
amounts expected to be recovered from or paid
to the taxation authorities.

Current income tax relating to items recognised
outside profit or loss is recognised outside profit
or loss (either in other comprehensive income
or in equity). Current tax items are recognised in
correlation to the underlying transaction either in
OCI or directly in equity. 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.

Deferred tax

Deferred tax is recognized on temporary
differences between the carrying amounts of
assets and liabilities in the financial statements
and the corresponding tax bases used in the
computation of taxable profit under Income tax
Act, 1961.

Deferred tax liabilities are generally recognized
for all taxable temporary differences. However,
in case of temporary differences that arise from
initial recognition of assets or liabilities in a
transaction (other than business combination)
that affect neither the taxable profit nor the
accounting profit, deferred tax liabilities are not
recognized. Also, for temporary differences if any
that may arise from initial recognition of goodwill,
deferred tax liabilities are not recognized.

Deferred tax assets are generally recognized for
all deductible temporary differences to the extent
it is probable that taxable profits will be available
against which those deductible temporary
difference can be utilized. In case of temporary
differences that arise from initial recognition of
assets or liabilities in a transaction (other than
business combination) that affect neither the
taxable profit nor the accounting profit, deferred
tax assets are not recognized. The carrying
amount of deferred tax assets is reviewed at the
end of each reporting period and reduced to the
extent that it is no longer probable that sufficient
taxable profits will be available to allow the
benefits of part or all of such deferred tax assets
to be utilized.

Deferred tax assets and liabilities are measured
at the tax rates that have been enacted or
substantively enacted by the balance sheet date
and are expected to apply to taxable income in
the years in which those temporary differences
are expected to be recovered or settled.

The Company has not recognised a deferred
tax liability for all taxable temporary differences
associated with investments in subsidiaries and
associates, and interests in joint arrangements,
except to the extent that both of the following
conditions are satisfied:

- the parent, investor, joint venture or joint
operator is able to control the timing of the
reversal of the temporary difference; and

- it is probable that the temporary difference
will not reverse in the foreseeable future.

Deferred tax relating to items recognised outside
profit or loss is recognised outside profit or loss
(either in other comprehensive income or in
equity). Deferred tax items are recognised in
correlation to the underlying transaction either in
OCI or directly in equity.

Presentation of current and deferred tax:

Current and deferred tax are recognized as
income or an expense in the Statement of Profit
and Loss, except when they relate to items that are
recognized in Other Comprehensive Income, in
which case, the current and deferred tax income/
expense are recognized in Other Comprehensive
Income. The Company offsets current tax assets
and current tax liabilities, where it has a legally
enforceable right to set off the recognized
amounts and where it intends either to settle on
a net basis, or to realize the asset and settle the
liability simultaneously. In case of deferred tax
assets and deferred tax liabilities, the same are
offset if the Company has a legally enforceable
right to set off corresponding current tax assets
against current tax liabilities and the deferred
tax assets and deferred tax liabilities relate to
income taxes levied by the same tax authority on
the Company.

2.14 Impairment of non-financial assets

At each reporting date, the Company assesses
whether there is any indication that an asset
may be impaired. If such indication exists, or
when annual impairment testing is required,
the recoverable amount of an asset or cash¬
generating unit (CGU) is estimated. Recoverable
amount is the higher of fair value less costs of
disposal and value in use and is determined for
individual assets unless cash inflows are not
largely independent, in which case the CGU
is tested.

An impairment loss is recognised when the
carrying amount of an asset or CGU exceeds its
recoverable amount. Value in use is determined
by discounting estimated future cash flows using
a pre-tax rate reflecting market assessments and
asset-specific risks. Fair value less costs of disposal
is based on observable market transactions or
appropriate valuation techniques, supported by
other available indicators.

For assets other than goodwill, previously
recognised impairment losses are reversed only
if there is a change in the assumptions used to
determine the recoverable amount. Reversal
is limited so that the carrying amount does not
exceed the recoverable amount or the carrying
amount that would have been determined,
net of depreciation, had no impairment loss
been recognised. Reversals are recognised
in profit or loss unless the asset is carried at a
revalued amount.

Goodwill is measured at cost less accumulated
impairment losses and allocated to CGUs
expected to benefit from the business
combination. CGUs with goodwill are tested
for impairment annually, or more frequently if
indicators exist. Any impairment loss is allocated
first to goodwill and then to other assets of the
CGU on a pro-rata basis and is recognised in
profit or loss. Impairment losses for goodwill are
not reversed.

2.15 Earnings Per Share:

Basic earnings per share is calculated by dividing
the net profit or loss for the period attributable to
equity shareholders (after deducting attributable
taxes) by the weighted-average number of
equity shares outstanding during the period.
The weighted-average number of equity shares
outstanding during the period is adjusted for
events including a bonus issue.

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

2.16 Events after reporting date

Where events occurring after the balance
sheet date provide evidence of conditions that
existed at the end of the reporting period, the
impact of such events is adjusted within the
financial statements. Otherwise, events after the
balance sheet date of material size or nature are
only disclosed.

2.17 Business combination

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 noncontrolling interests
in the acquiree. For each business combination,
the company elects whether to measure the
noncontrolling 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.

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 and Loss or
OCI, as appropriate.

Any contingent consideration to be transferred
by the acquirer is recognised at fair value at the
acquisition date.

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."

2.18 Property, plant and equipment

Measurement at recognition

An item of property, plant and equipment
that qualifies as an asset is measured on initial
recognition at cost. Following initial recognition,
items of property, plant and equipment are
carried at its cost less accumulated depreciation
and accumulated impairment losses.

The cost of an item of property, plant and
equipment comprises of its purchase price
including import duties and other non-refundable
purchase taxes or levies, directly attributable cost
of bringing the asset to its working condition
for its intended use and the initial estimate
of decommissioning, restoration and similar
liabilities, if any. Any trade discounts and rebates
are deducted in arriving at the purchase price.
Cost includes cost of replacing a part of a plant
and equipment if the recognition criteria are met.
Items such as spare parts, stand-by equipment

and servicing equipment that meet the definition
of property, plant and equipment are capitalized
at cost and depreciated over their useful life.
Costs in nature of repairs and maintenance are
recognized in the Statement of Profit and Loss as
and when incurred.

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.

Capital work-in-progress and capital
advances:

Cost of assets not ready for intended use, as on
the balance sheet date, is shown as capital work-
in-progress. Advances given towards acquisition
of property, plant and equipment outstanding at
each balance sheet date are disclosed as other
non-financial assets.

The Company has no Intangible assets in the
nature of Goodwill or Misc. Expenditure.

The Company has no jointly owned assets.

Costs of borrowing related to the acquisition or
construction of fixed assets that are attributable
to the qualifying assets are capitalised as part of
the cost of such asset. All other borrowing costs
are recognized as expenses in the periods in
which they are incurred. An item of property, plant
and equipment and any significant part initially
recognised 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 such
asset is derecognised."

Subsequent cost

Subsequent costs are included in the asset's
carrying amount or recognised as a separate
asset, as appropriate, only when it is probable
that the future economic benefits associated
with expenditure will flow to the Company and
the cost of the item can be measured reliably. All
other subsequent cost are charged to Statement
of profit and loss at the time of incurrence.

Depreciation

Depreciation on each part of an item of property,
plant and equipment is provided using the
straight line method based on the useful life of

the asset as prescribed in Schedule II to the Act.
Depreciation is calculated on a pro-rata basis
from the date of installation till date the assets
are sold or disposed. Leasehold improvements
are amortised over the underlying lease term on
a straight line basis. "

Impairment

At each Balance Sheet date, the Company
reviews the carrying amounts of its fixed assets
to determine whether there is any indication that
those assets suffered an impairment loss. If any
such indication exists, the recoverable amount of
the asset is estimated in order to determine the
extent of the impairment loss. The recoverable
amount is the higher of an asset's net selling
price and value in use. In assessing the value in
use, the estimated future cash flows expected
from the continuing use of the asset and from its
ultimate disposal are discounted to their present
values using a pre-determined discount rate
that reflects the current market assessments
of the time value of money and risks specific to
the asset.

De-recognition

The carrying amount of an item of property, plant
and equipment is derecognized on disposal or
when no future economic benefits are expected
from its use or disposal. The gain or loss arising
from the de-recognition of an item of property,
plant and equipment is measured as the
difference between the net disposal proceeds
and the carrying amount of the item and is
recognized in the Statement of Profit and Loss
when the item is derecognized.

Transition to Ind AS

On transition to Ind AS, the company has elected
to continue with the carrying value of all of its
property, plant and equipment recognised and
measured as per the previous GAAP and use
that carrying value as the deemed cost of the
property, plant and equipment

2.19 Lease Accounting

At inception of the contract, the Company
assesses whether a contract is, or contains,
a lease. A contract is, or contains, a lease if the
contract coveys the right to control the use of an
identified asset for a period of time in exchange
for consideration. To assess whether a contract
conveys the right to control the use of an
identified asset, the Company assesses whether:

(i) The contract involves use of an identified
asset, whether specified explicitly
or implicitly;

(ii) The Company has the right to obtain
substantially all of the economic benefits
from use of the asset throughout the period
of use;

(iii) The Company has right to direct the use of
the asset by either having right to operate
the asset or the Company having designed
the asset in a way that predetermines how
and for what purpose it will be used.

Accounting as a lessee

The Company recognises a right-of-use asset and
a lease liability at the lease commencement date.
The right-of-use asset is initially measured at cost,
which comprises the initial amount of the lease
liability adjusted for any lease payments made on
or before the commencement date, plus any initial
direct costs incurred and an estimate of cost to
dismantle and remove the underlying asset or to
restore the underlying asset or the site on which
it is located, less any lease incentive received

The right-of-use asset is subsequently measured
at cost less accumulated depreciation,
accumulated impairment losses, if any and
adjusted for any remeasurement of the lease
liability. The right-of-use asset is depreciated using
straight line method from the commencement
date to the earlier of, the end of the useful life of
the right-of-use asset or the end of lease term.
The estimates of useful lives of right-of-use assets
are determined on the same basis as those of
property, plant and equipment. In addition, the
right-of-use asset is periodically reduced by
impairment losses, if any, and adjusted for certain
remeasurements of lease liability.

The lease liability is initially measured at the
present value of the lease payments, that are not
paid at the commencement date, discounted
using the interest rate implicit in the lease or,
if that rate cannot be readily determined, the
Company's incremental borrowing rate. The lease
liability is subsequently measured at amortised
cost. The lease payments shall include fixed
payments, variable lease payments, residual value
guarantees, exercise price of a purchase option
where the Company is reasonably certain to
exercise that option and payment of penalties for
terminating the lease, if the lease term reflects the
lessee exercising an option to terminate the lease.
The lease liability is subsequently remeasured

by increasing the carrying amount to reflect
interest on lease liability, reducing the carrying
amount to reflect the lease payments made and
remeasuring the carrying amount to reflect any
reassessment or lease modifications or to reflect
revised-in-substance fixed lease payments.

The Company has elected not to recognise right-
of-use asset and lease liabilities for short term
leases that have a lease term of 12 months or
less and leases of low value assets. The Company
recognises the lease payments associated with
these leases as an expense on straight line basis
over the lease term."

2.20 Foreign Currency Translation

Foreign currency transactions are translated
into Indian Rupee (INR) which is the functional
currency (i.e. the currency of the primary
economic environment in which the entity
operates) using the exchange rates at the dates
of the transactions. Foreign exchange gains
and losses resulting from the settlement of
such transactions and from the translation of
monetary assets and liabilities denominated in
foreign currencies at year end exchange rates are
recognised in profit or loss.

Foreign Currency non-monetary items carried
in terms of historical cost are reported using the
exchange rate at the date of the transactions."

2.21 Segment reporting

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 is responsible for
allocating resources and assessing performance
of the operating segments of the Company.

2.22 Recent pronouncement

The Ministry of Corporate Affairs (“MCA”) notifies
new standards or amendments to the existing
standards under Companies (Indian Accounting
Standards) Rules as issued from time to time.

In May 2025, MCA notified amendments to
Ind AS 21 - The Effects of Changes in Foreign
Exchange Rates, applicable w.e.f. April 1, 2025.
The Company has reviewed the amendment
and based on its evaluation has determined
that it does not have any significant impact in its
financial statements."

In August 2025, MCA notified the following
amendments to:

1. I nd AS 1, Presentation of Financial
Statements, applicable w.e.f. April 1, 2025

- The amendment relates to classification
of liabilities as current or non current and
non-current liabilities with covenants. In the
context of classifying a liability as current,
it removes the requirement of existence of
a right to defer settlement for at least 12
months after the reporting date and instead
requires that the said right should exist on
the reporting date and have substance.

The amendment also introduces guidance
on classification of liabilities with covenants.
The Company has no impact of these
amendments in its classification criteria of
current and non-current liabilities."

2. Ind AS 7, Statement of Cash Flows and Ind

AS 107, Financial Instruments: Disclosures,
applicable w.e.f. April 1, 2025 - The

amendment in Ind AS 7 requires to inform
users of financial statements of the existence
of supplier finance arrangements and
explain the nature of the arrangements,
the carrying amount of liabilities and the
range of payment due dates. Ind AS 107
has been amended to add supplier finance
arrangements as a factor that may cause
concentration of liquidity risk. The Company
has reviewed the amendment and based on
its evaluation has determined that it does not
have any significant impact in its financial
statements."

3. Ind AS 12, International Tax Reform - Pillar
Two Model Rules applicable immediately

- The amendments provide a temporary
mandatory relief from deferred tax
accounting for top-up tax and disclose that
they have applied the relief. This relief is
immediate and applies retrospectively. The
Company has reviewed the amendment and
based on its evaluation has determined that
it does not have any significant impact in its
financial statements."

(d) Terms & Rights attached to Equity Shareholders

The Company has issued only one class of equity shares having a par value of C 10 per share. Each equity
shareholder is entitled to one vote per share. 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, in proportion to their shareholding. Any dividend proposed by the Board of Directors
is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of
interim dividend.

(e) As per records of the Company, including its register of shareholders, the above shareholding represents
both legal and beneficial ownership of shares.

(f) The Company has neither bought back any shares nor issued any bonus shares during the current year or
the preceding year.

Note 15.1 - An aggregate of 1,06,02,960 equity shares of C 10 each were issued pursuant to amalgamation
in FY 2024-25, without payment being received in cash during the period of five years immediately preceding
the reporting date. (Further details of the amalgamation are provided in Note 42)

Note 15.2 - The board of directors of Gretex Industries Limited vide its circular resolution dated 29^th May ,2025
have considered and approved the allotment of 6,91,500 equity shares of face value of C 10 each by way of
preferential issue at an issue price of C236 each (including a premium of C 226 each) for cash consideration to
certain identified persons belongings to promoters and non-promoter group of Company.

Additional disclosure pursuant to Schedule III:

(i) The Company does not have any shares reserved for issue under options, contracts or commitments for
the sale of shares or disinvestment as at the reporting date.

(ii) There are no calls unpaid, including by Directors and Officers, as at the reporting date.

(iii) There are no forfeited shares outstanding as at the reporting date.

Description and nature of Other Equity:

(i) Share Application Money Pending Allotment : Share Application Money Pending Allotment represents
amounts received for equity shares that are yet to be allotted as of the reporting date. Once the allotment
process is completed, the balance will be transferred to Equity Share Capital. Until then, this amount is
presented separately under ‘Other Equity' in accordance with the Companies Act, 2013 and the applicable
accounting standards.

(ii) Securities Premium : Securities premium is used to record premium received on issue of shares. The
reserve is utilised in accordance with the provisions of the Companies Act, 2013.

(iii) Retained Earnings : This Reserve represents the cumulative profits of the Company and effects of
remeasurement of defined benefit obligations. This Reserve can be utilized in accordance with the
provisions of the Companies Act, 2013.

(iv) Capital Reserve : The negative capital reserve represents loss on exchange ratio on account of
amalgamation with Apsara Selections Limited and Sankhu Merchandise Private Limited. Such negative
balance is presented separately under other Equity and shall be adjusted in accordance with applicable
standards and provisions of Companies Act,2013.

(v) Other Comprehensive Income : This represents the cumulative gains and losses arising on the
revaluation of financial instruments measured at fair value through other comprehensive income, under
an irrevocable option, net of amounts reclassified to retained earnings when such assets are disposed off,
if any. Remeasurement gains and losses arising from experience adjustments and changes in actuarial
assumptions are recognised directly in other comprehensive income.

(vi) Share warrant : This represent instruments issued by the company entitling the holder to subscribe
equivalent number of shares at a pre-determined price within the specified exercise period in accordance
with terms of issue.

NOTE 16.1- Money received against share warrants

The board of Directors of Gretex Industries Limited vide its circular resolution dated 29^th May, 2025 have
considered and approved allotment of 13,64,410 equity warrants at a price of C236/- per warrant of face value
of C10 per share warrant(including a premium of C226 per share warrant) aggregating upto 3,220 Lakhs with a
right to warrant holders to apply for equivalent number of equity shares of the face value of C10 within a period
of 18 (eighteen) months from the date of allotment of warrants.

An amount equivalent to 25% of warrant issue price received at the time of subscription and allotment of each
warrant and balance 75% shall be payable by warrant holder on the exercise of warrant.

Amount raised during the year 13,64,410 equity warrant at the rate of 25% of warrant price per share i.e. C236
per warrant aggregating to C 805 Lakh and outstanding amount of 75% of warrant price per share i.e. C236 per
warrant aggregating to C2,415 Lakh will be receivable on exercise of warrant by warrant holder i.e. on allotment
of equity shares.

Disclosure under the Micro, Small and Medium Enterprises Act,2006 ("MSMED Act, 2006") is as under:

Note:

Information as required to be furnished as per section 22 of the Micro, Small and Medium Enterprises
Development Act, 2006 (MSMED Act) is given below. This information has been determined to the extent such
parties have been identified on the basis of information available with the Company.

NOTE 35: RELATED PARTY DISCLOSURES

In accordance with the requirements of IND AS 24, on Related Party Disclosures, name of the related party,
related party relationship,transactions and outstanding balances including commitments where control exists
and with whom transactions have taken place during reported periods, are provided below:

(a) Short Term Employee Benefits:

The undiscounted amount of short term employee benefits expected to be paid in exchange for the
services rendered by employees are recognised as an expense during the period when the employees
render the services.

(b) Long Term Employee Benefits :

Compensated absences which are not expected to occur within twelve months after the end of the period
in which the employee renders the related service are recognised as a liability as at the Balance Sheet date
on the basis of actuarial valuation as per Projected Unit Credit Method.

Post-Employment Benefits

(c) Defined Contribution Plans

A defined contribution plan is a post-employment benefit plan under which the Company pays specified
contributions towards Provident Fund, Employee State Insurance and Pension Scheme. The Company's
contribution is recognised as an expense in the Statement of Profit and Loss during the period in which
the employee renders the related service.

(d) Defined Benefit Plans
(i) Gratuity :

The Company offers gratuity plan for its qualified employees which is payable as per the requirements
of Payment of Gratuity Act, 1972. The benefit vests upon completion of five years of continuous
service and once vested it is payable to employees on retirement or on termination of employment. In
case of death while in service, the gratuity is payable irrespective of vesting.

Benefit Risks in Defined Benefit Schemes

1 Risk to the beneficiary

The greatest risk to the beneficiary is that there are insufficient funds available to provide the
promised benefits. This may be due to:

- The insufficient funds set aside, i.e. underfunding

- The insolvency of the Employer

- The holding of investments which are not matched to the liabilities

- Or a combination of these events

2 Parameter risk

Actuarial valuation is done basis some assumptions like salary inflation, discount rate and attrition rate
assumptions. In case the actual experience varies from the assumptions, fund may be insufficient
to pay off the liabilities.

For example: the plan's liability is calculated with salary inflation assumption of 5% per annum.
However, Company's' actual practice is to provide increment of 10% per annum. This will result
into rise in liability and hence, underfunding.

Similarly, reduction in discount rate in subsequent future years can increase the plan's liability.

Further, actual withdrawals may be lower or higher than what was assumed in the
valuation, may also impact the plan's liability.

3 Risk of illiquid Assets

Another risk is that the funds, although sufficient, are not available when they are required
to finance the benefits. This may be due to assets being locked for longer period or in illiquid
assets.

4 Risk of Benefit Change/ Regulatory Risk

There may be a risk that the benefit promised is changed or is changeable within the terms of
the contract. For example, Regulator may increase the benefits payable under defined benefit
plans.

5 Asset liability mismatching risk

ALM risk arises due to a mismatch between assets and liabilities either due to liquidity or
changes in interest rates or due to different duration.

For example: The liability duration is 10 years. While assets are locked in 5-year g-sec securities.
After 5 years, there is huge reinvestment risk to invest maturity proceeds of assets due to
uncertainty about the market prevailing yields at that time.

NOTE 38: FIRST TIME ADOPTION OF IND AS

These financial statements, for the year ended 31^st March 2026, is the first time the Company has prepared in accordance with Ind
AS. For periods up to and including the year ended 31^st March 2025, the Company prepared its financial statements in accordance
with accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies
(Accounts) Rules, 2014 (Indian GAAP).

Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for period ending on 31^st March
2026, together with the comparative period data as at and for the year ended 31^st March 2025, as described in the summary of
material accounting policies. In preparing these financial statements, the Company's opening balance sheet was prepared as at
1^st April 2024, the Company's date of transition to Ind AS. This note explains exemptions availed by the Company in restating its
Indian GAAP financial statements, including the balance sheet as at 1^st April 2024 and the financial statements as at and for the
year ended 31^st March 2025.

"In preparing these Ind AS financial statements, the Company has availed certain exemptions and exceptions in accordance with
Ind AS 101, as explained below. The resulting difference between the carrying values of the assets and liabilities in the financial
statements as at the transition date under Ind AS and Previous GAAP have been recognised directly in equity (retained earnings
or another appropriate category of equity). This note explains the adjustments made by the Company in restating its financial
statements prepared under previous GAAP, including the Balance Sheet as at 1^st April, 2024 and the financial statements as at and
for the year ended 31^st March, 2025.

Exemptions applied
1 Mandatory exemptions

a) Estimates

On assessment of the estimates made under the Previous GAAP financial statements, the Company has concluded that there
is no necessity to revise the estimates under Ind AS, as there is no objective evidence of an error in those estimates. However,
estimates that were required under Ind AS but not required under Previous GAAP are made by the Company for the relevant
reporting dates reflecting conditions existing as at that date.

b) Classification and measurement of financial instruments

The classification of financial assets or financial liability to be measured at amortised cost or fair value through other
comprehensive income or fair value through Profit & Loss is made on the basis of the facts and circumstances that existed on
the date of transition to Ind AS.

c) Deemed cost-Previous GAAP carrying amount

Since there is no change in the functional currency, the company has elected to continue with the carrying value for all of
Property, Plant and Equipment, Intangible Assets & Investment Property, as recognised in its Indian GAAP financial as deemed
cost at the transition date.

The impact of recognising accumulated depreciation up to the date of transition has been adjusted against retained earnings
as at the transition date in accordance with Ind AS 101

d) Business Combination

The company has elected not to apply Ind AS 103 Business Combinations retrospectively to past business combinations that
occurred before the transition date i.e. 1^st April 2024.

(b) Fair value hierarchy

The fair value of financial assets and liabilities are included at the amount at which the instrument could
be exchanged in a current transaction between willing parties, other than in a forced sale or liquidation
sale. Methods and assumptions used to estimate the fair values are consistent in all the years. Fair value
of financial instruments referred to in note (a) above has been classified into three categories depending
on the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices
in active markets for identical assets and liabilities and lowest priority to unobservable entity specific
inputs.

The financial instruments are categorized into three levels based on the inputs used to arrive at fair value
measurements as decided below:

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.

NOTE 40: FINANCIAL RISK MANAGEMENT

Company's business activities are exposed to a variety of financial risks like credit risk, market risks and liquidity
risk. Company's senior management is responsible for establishing and monitoring the risk management
framework within its overall risk management objectives and strategies approved by the Board of Directors.
Such risk management strategies and objectives are established to identify and analyse potential risks faced
by the Company, set and monitor appropriate risk limits and controls, periodically review the changes in market
conditions and assess risk management performance. Any change in Company's risk management objectives
and policies need approval of it's Board of Directors.

(a) 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 receivables from
customers and other receivables. The carrying amounts of financial assets represent the maximum credit
exposure.

i) Trade and other receivables

The Company's credit risk exposure is primarily influenced by customer-specific characteristics and
the default risk associated with the industry and country in which they operate. Credit risk is managed
through credit approvals, defined credit limits, and ongoing monitoring of customer creditworthiness.
The Company recognizes allowances for doubtful debts and impairments, representing estimated
incurred losses on trade receivables, other receivables, and investments.

ii) Cash and Bank balance (including other bank balance)

The Company held cash and cash equivalents and other bank balances with credit worthy banks and
financial institutions. The credit worthiness of such banks and financial institutions is evaluated by
management on an ongoing basis and is considered to be good.

(b) Market risk:

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because
of changes in market prices. Market risk comprises two types of risk: Currency risk and other price risk
such as commodity price risk. Financial instruments affected by market risk include trade payables, trade
receivables and deposits.

i) Price risk

Commodity price risk arises from fluctuations in lead prices. The Company manages this risk within a
defined risk management framework through centralized trading operations and control processes.
In line with its risk management policy, the Company may enter into derivative contracts, including
exchange-traded futures, options, and swaps, to hedge its exposure. However, as at 31^st March 2026,
the Company had no outstanding derivative contracts.

ii) Currency risk

The Company is not exposed to currency risk on account of its operating activities. The functional
currency of the Company is Indian Rupee.

(c) Liquidity risk:

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become
due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient
liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring
unacceptable losses or risk to the Company's reputation.

The following table shows the remaining contractual maturities of financial liabilities at the reporting date.
The amounts reported are on gross and undiscounted basis and includes contractual interest payments.

(d) Capital management

For the purpose of Company's capital management, capital includes issued equity share capital, retained
earnings and short-term borrowings less cash and cash equivalents. The primary objective of capital
management is to maintain an efficient capital structure to reduce the cost of capital, support corporate
expansion strategies and to maximise shareholder's value. Company has fund based credit facilities with
banks from which it borrows during peak seasons to meet its working capital requirements. Further, the
Company borrows funds from its group Companies at market rates, as and when required for managing
its working capital requirements.

NOTE 41(a): AMALGAMATION NOTE

Pursuant to the Composite Scheme of Amalgamation ("the Scheme”) sanctioned by The National Company
Law Tribunal, Kolkata Bench, on 02^nd April, 2024 for the amalgamation of Apsara Selections Limited and Sankhu
Merchandise Private Limited (collectively referred to as the "Transferor Companies”) with Gretex Industries
Limited ("the transferee Company”). The Scheme has been given effect to in the financial statements for the
year ended 31^st March 2025 and 1^st April 2024, using the pooling of interest method prescribed under Ind AS
103 - Business Combinations. Previous period figures, where applicable, have been restated accordingly.

The Board of Directors of the Company at its meeting held on 08^th June, 2020, had considered and approved
the amalgamation of ""Transferor Companies"" into and with the Company by way of separate schemes
of amalgamation.

In accordance with the Scheme and the valuation report by a Registered Valuer, the shareholders of the
Transferor Companies were allotted equity shares of the Company in the following exchange ratios:

Apsara Selections Limited - 13 shares of the Company for every 1 share held.

Sankhu Merchandise Private Limited - 21 shares of the Company for every 1 shares held.

The amalgamation of Apsara Selections Limited and Sankhu Merchandise Private Limited with Gretex
Industries Limited aims to consolidate operations, optimize resources, and achieve economies of scale. It will
strengthen the financial and capital base, enhance retained earnings, improve creditworthiness, and streamline
the corporate structure. The combined entity will also leverage managerial and marketing strengths, facilitate
future expansion and diversification, and promote overall business efficiency and growth.

The consideration for the amalgamation was discharged through the issuance of equity shares. The difference
between the net assets of the Transferor Companies and the equity shares issued, amounting to ^16,265.76,
has been recognized in Other Equity.

NOTE 41(b) : EFFECT OF AMALGAMATION

(i) The Hon'ble National Company Law Tribunal, Kolkata Bench, in the matter of C.P. (CAA) No vide its order/
company petitions no-11/KB/2022 dated 2^nd April 2024 has sanctioned the Scheme of Amalgamation of
Apsara Selections Limited and Sankhu Merchandise Private Limited (Transferor Companies) with Gretex
Industries Limited (Transferee Company) pursuant to Section 233 of the Companies Act, 2013.

(ii) The Transferor Companies and the Transferee Company respectively will comply with all the applicable
provisions of the Companies Act, 2013 for registering the order passed by the Hon'ble National Company
Law Tribunal, Kolkata Bench.

(iii) As per the Scheme of Amalgamation, all the Assets and Liabilities including Other Equity of the erstwhile
Transferor Company will stand transferred and vested with the Company as on and from the Appointed
Date, i.e., 1^st January 2020 as the certified copy of order was received on 22^nd April 2024.

(iv) The company has recorded in its books all the Assets and Liabilities including Other Equity of the erstwhile
Transferor Company as on 1^st January 2020 the Transfer date by booking them on one to one basis.

(v) The Transferee Company is taking appropriate steps for registering in its name all assets that are registered
in the name of erstwhile Transferor Company.

(vi) The accounting for Amalgamation is being done on the basis of business combination of entities under
common control in accordance with Indian Accounting Standard AS-103.

(vii) As per the scheme of Amalgamation, the Authorized Capital of the Transferor Company is transferred to
and amalgamated with the authorized share capital of the Transferee Company.

(viii) Upon the Scheme being sanctioned by the Hon'ble National Company Law Tribunal, Kolkata Bench
and transfer being taken place as stipulated under different clause here in terms of the Scheme, the
transferee company shall without any further application issue and allot to every equity share holders of
the Transferor Companies fully paid up shares of the Transferee Company. Pending issue of such shares
as on 31^st March 2024, the face value of shares to be issued has been accounted under Share Application
Money Pending Allotment.

(ix) While Calculating Earnings per share, we have considered outstanding paid up and issued shares of
Transferee company only.

(x) Pursuant to the Scheme of Amalgamation and the valuation report issued by a Registered Valuer, the
shareholders of the Transferor Companies were allotted equity shares of the Company in the following
exchange ratios: Apsara Selections Limited - 13:1 and Sankhu Merchandise Private Limited - 21:1. Equity
shares aggregating to ^1,06,029.60, having a face value of ^10 each, were issued to the shareholders of
the Transferor Companies. The difference between the share capital issued and the share capital of the
Transferor Companies taken over has been transferred to Capital Reserve amounting to (^99,350.40).

The retained earnings and securities premium of the Transferor Companies amounting to ^16,563.52
and ^66,521.12, respectively, have been recorded in the books of the Company. All assets and liabilities
of the Transferor Companies have been recognised by the Company at their respective book values, in
accordance with Ind As -103.

NOTE 41(c): EVENTS AFTER REPORTING PERIOD

The amalgamation became effective on 2^nd April, 2024. However, the appointed date of the amalgamation
was 1^st January, 2020, pursuant to which the merger has been accounted for in FY 2023-24. As the conditions
relating to the amalgamation existed as at the reporting date, and the event occurred after the reporting
period but before the approval of the financial statements, it qualifies as an adjusting event in accordance with
IND AS 10 - Events after the Reporting Period. Accordingly, the financial statements for the year ended 31^st
March, 2024 have been adjusted to reflect the impact of the amalgamation.

NOTE 42: DISCLOSURE AS PER IND AS 116 LEASES

The Company has taken various assets on lease such as buildings, etc. Generally, leases are renewed only on
mutual consent and at a prevalent market price.

a) Interest expense on lease liabilities amounts to C 8.01 (2024-25: C4.47 ).

b) The expense relating to payments not included in the measurement of lease liability and recognized as
expense in the Statement of Profit and Loss during the year are as follows:

Rent expense of Short-term leases - C15.98 (2024-25: C13.38 )

c) Total cash out flow for leases amounts to C55.41 during the year (2024-25: C33.05).

NOTE 43: SEGMENT REPORTING

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 is considered to be the Board of Directors who
makes strategic decisions and responsible for allocating resources and assessing the financial performance of
the operating segments.

The company's business activity fall within a single segment, which is trading of musical instruments whose
risks and returns are similar to each other. Hence there is no business segments to be reported by the company
in terms of IND AS 108 on Segment Reporting."

NOTE 44: CONTINGENT LIABILITIES AND COMMITMENT

The company does not have any Capital Commitments as on reporting date. The details of contingent liability
is given below :

The company has received notice from Ministry of Textiles Government of India dated 02^nd March, 2026,
where it is requested to refund the entire release subsidy amount of C29.74 Lakhs alongwith interest @10%
p.a. from date of refund . The company vide its letter dated 26^th March 2026 has reiterated initiating recovery
after several years, during which they have operated in bona fide reliance on these funds, is inconsistent with
administrative fairness and requested to withdraw the proposed recovery proceedings. The company is of the
opinion that they will set relief on the same.

NOTE 45:CORPORATE SOCIAL RESPONSIBILITY

During the current & previous year the company was not required to comply with the provision of Section 135
of the Companies Act, 2013 relating to Corporate Social Responsibility.

The balance of C10,000/- represents CSR obligation pertaining to earlier financial year(s) and remains payable
as at March 31, 2026."

NOTE 46:CODE ON SOCIAL SECURITY / LABOUR CODES

Based on the assessment carried out by the management, the Company does not expect any material impact
arising from implementation of the Labour Codes on its financial statements.

NOTE 47: OTHER REGULATORY INFORMATION

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

(ii) The Company does not have any transactions with struck off companies.

(iii) The company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read
with Companies (Restriction on number of Layers) Rules, 2017.

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

(a) directly or indirectly lend to 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.

(v) 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 to 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 to or on behalf of the ultimate beneficiaries.

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

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

(viii) The Company has not been declared as wilful defaulter by any bank or financial institution or other lender.

(ix) The Company has not created any charge during the year.

NOTE 48. The figures for the previous years have been reclassified wherever necessary to make them
comparable with the current year's presentation.