NOTE 2: MATERIAL ACCOUNTING POLICIES

This Note provides a list of the Material Accounting Policies adopted by GB global Limited formerly Known as Mandhana
Industries Limited; in the preparation of the Financial Statements. These policies have been consistently applied to all the
years presented, unless otherwise stated.

A. STATEMENT OF COMPLIANCE

These financial statements are prepared in accordance with Indian Accounting Standard (Ind AS), and the provisions
of the Companies Act ,2013 ('the Act') (to the extent notified). The Ind AS are prescribed under Section 133 of the Act
read with Rule-3 of the Companies (Indian Accounting Standards) Rules, 2015 and relevant amendment rules issued
thereafter.

B. BASIS OF PREPARATION AND PRESENTATION

These financial statements have been prepared and presented under the historical cost convention, on the accrual
basis of accounting except for certain financial assets and financial liabilities that are measured at fair values at the
end of each reporting period, as stated in the accounting policies set out below. The accounting policies have been
applied consistently over all the periods presented in these financial statements except where a newly issued
accounting standard is initially adopted or a revision to an existing accounting standard requires a charge in the
accounting policy in use.

Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date, regardless of whether that price is directly observable or
estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes
into account the characteristics of the asset or liability if market participants would take those characteristics into
account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure
purposes in these financial statements is determined on such a basis, except for share-based payment transactions
that are within the scope of Ind AS 102, leasing transactions that are within the scope of Ind AS 116, and measurements
that have some similarities to fair value but are not fair value, such as net realisable value in Ind AS 2 or value in use
in Ind AS 36.

In addition, for financial reporting purposes, fair value measurements are categorized into Level 1, 2, or 3 based on
the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to
the fair value measurement in its entirety, which are described as follows:

• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can
access at the measurement date;

• Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or
liability, either directly or indirectly; and

• Level 3 inputs are unobservable inputs for the asset

C. FUNCTIONAL AND PRESENTATION CURRENCY

Items included in the financial statements of Company are measured using the currency of the primary economic
environment in which the Company operates ("the functional currency"). Indian rupee is the functional currency of
the Company.

The financial statements are presented in Indian Rupees which is the Company's presentation in Indian Rupees has
been rounded up to the nearest lacs except where otherwise indicated.

D. CURRENT Vs. NON-CURRENT CLASSIFICATION

The Company presents assets and liabilities in the balance sheet based on current/ non-current classification.

An asset is treated as current when it is:

• Expected to be realised or intended to be sold or consumed in normal operating cycle

• Held primarily for the purpose of trading

• Expected to be realised within twelve months after the reporting period, or

• Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve
months after the reporting period.

All other assets are classified as non-current.

A liability is current when:

• It is expected to be settled in normal operating cycle

• It is held primarily for the purpose of trading

• It is due to be settled within twelve months after the reporting period, or

• There is no unconditional right to defer the settlement of the liability for at least twelve months after the
reporting period.

The Company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

The operating cycle is the time between the acquisition of assets for processing and their realization in cash and cash
equivalents. The Company has identified twelve months as its operating cycle.

E. USE OF ESTIMATE AND JUDGEMENTS

The estimates and judgements used in the preparation of the financial statements are continuously evaluated by the
Company and are based on historical experience and various other assumptions and factors (including expectations
of future events) that the Company believes to be reasonable under the existing circumstances. Differences between
actual results and estimates are recognized in the period in which the results are known/materialized.

The said estimates are based on the facts and events, that existed as at the reporting date, or that occurred after that
date but provide additional evidence about conditions existing as at the reporting date.

F. REVENUE RECOGNITION

Effective April 1, 2018, the Company adopted Ind AS 115 'Revenue from Contracts with Customers'. First time
adoption has been conducted retrospectively with cumulative effect of initially applying this standard as on the
transition date. The effect on the transition to Ind AS 115 is insignificant.

Revenue is measured at the fair value of the consideration received or receivable. Amount disclosed as revenue are
net of returns, rebates, goods & services tax and value added taxes.

The Company recognizes revenue when the amount of revenue can be reliably measured, it is probable that future
economic benefits will flow to the entity and specific criteria have been met for each of the Company's activities, as
described below.

The Company bases its estimate of return on historical results, taking into consideration the type of customer, the
type of transaction and the specifics of each arrangement.

• Revenue recognised from major business activities:- Revenue from sale of goods is recognised as and when
the Company satisfies performance obligations by transferring control of the promised goods to its
customers.

• Revenue from a contract to provide services is recognised by reference to the stage of completion of the
contract.

• Export Incentives under various schemes are accounted in the year of export on accrual basis.

• Dividend income from investments is recognised when the shareholder's right to receive payment has
been established (provided that it is probable that the economic benefits will flow to the Company and
the amount of income can be measured reliably).

• Interest income from a financial asset is recognised when it is probable that the economic benefits
will flow to the Company and the amount of income can be measured reliably. Interest income is accrued on
a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is
the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset
to that asset's net carrying amount on initial recognition.

• The Company's policy for recognition of revenue from operating leases is described below in point no. T
"Lease"

• Government grants are not recognised until there is reasonable assurance that the Company will comply with
the conditions attaching to them and that the grants will be received.

G. FOREIGN CURRENCY TRANSACTIONS
Initial Recognition:

On initial recognition, for monetary items transactions in foreign currencies entered into by the Company are
recorded in the functional currency (i.e. Indian Rupees), by applying to the foreign currency amount, the spot
exchange rate between the functional currency and the foreign currency at the date of the transaction. Exchange
differences arising on foreign exchange transactions settled during the year are recognized in the Statement of Profit
and Loss.

For Non-monetary items that are measured in terms of historical cost in a foreign currency are recorded using the
exchange rates at the date of the transaction. In case of an asset, expense or income where a non-monetary advance
is paid/received, the date of transaction is the date on which the advance was initially recognised. If there were
multiple payments or receipts in advance, multiple dates of transactions are determined for each payment or receipt
of advance consideration.

Measurement of foreign currency items at reporting date:

Foreign currency monetary items of the Company are translated at the closing exchange rates. Non-monetary items
that are measured at historical cost in a foreign currency, are translated using the exchange rate at the date of the
transaction. Non-monetary items that are measured at fair value in a foreign currency, are translated using the
exchange rates at the date when the fair value is measured.

The gain or loss arising on translation of non-monetary items measured at fair value is treated in line with the
recognition of the gain or loss on the change in fair value of the item (i.e., translation differences on items whose fair
value gain or loss is recognised in OCI or Statement of Profit and Loss are also recognised in OCI or Statement of Profit
and Loss, respectively).

Income tax expense represents the sum of the tax currently payable and deferred tax.

Current income tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from 'profit before tax' as
reported in the statement of profit and loss because of items of income or expense that are taxable or deductible in
other years and items that are never taxable or deductible. The Company's current tax is calculated using tax rates
that have been enacted or substantively enacted by the end of the reporting period.

Current income tax assets/liabilities for current year is recognized at the amount expected to be paid to and/or
recoverable from the tax authorities.

Deferred tax

Deferred tax is recognised 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. Deferred tax liabilities
are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all
deductible temporary differences to the extent that it is probable that taxable profits will be available against which
those deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if
the temporary difference arises from the initial recognition (other than in a business combination) of assets and
liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

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 all or part of the asset to be
recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the
liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively
enacted by the end of the reporting period.

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the
manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount
of its assets and liabilities.

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form
of adjustment to future income-tax liability, is considered as an asset if there is convincing evidence that the Company
will pay normal income-tax. Accordingly, MAT Credit is recognised as asset in the Balance Sheet when it is probable
that future economic benefit associated with it will flow to the Company.

Current and deferred tax for the year :-

Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in
other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in
other comprehensive income or directly in equity respectively.

The appendix addresses the accounting for income taxes when tax treatments involve uncertainty that affects the
application of Ind AS 12 Income Taxes. It does not apply to taxes or levies outside the scope of Ind AS 12, nor does it
specifically include requirements relating to interest and penalties associated with uncertain tax treatments. The
Appendix specifically addresses the following:

Whether an entity considers uncertain tax treatments separately.

The assumptions an entity makes about the examination of tax treatments by taxation authorities.

How an entity determines taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates.
How an entity considers changes in facts and circumstances.

The Company determines whether to consider each uncertain tax treatment separately or together with one or more
other uncertain tax treatments and uses the approach that better predicts the resolution of the uncertainty. The
Company applies significant judgement in n identifying uncertainties over income tax treatments.