1[CORPORATE INFORMATION

The financial statements comprise financial statements of GUJARAT TOOLROOM LIMITED ("the Company ") (CIN : L45208GJ1983PLC006056) for the year ended March 31, 2025. The Company is a public company domiciled in India and is incorporated under the provisions of the Companies Act applicable in India. Its shares are listed on one recognized stock exchange in India. The registered office of the Company is located at 404 - 4th floor, Samarth Co.Op.H.Soc, Nr. Silicon Tower, Nr. Law Garden, Ellisbridge, Ahmedabad, Gujarat, India, 380006.

The Company is in the business of Trading Construction Material, Rough Diamonds & Gold, Agriculture Products and Other Miscellaneous products like Fabrics and Shares Trading.

The financial statements were authorised for issue in accordance with a resolution of the directors on May 31, 2025

2 | MATERIAL ACCOUNTING POLICIES

a Basis of Preparation

The financial statements have been prepared in accordance with the Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015, as amended, and other relevant provisions of the Companies Act, 2013. The Company follows the accrual method of accounting and historical cost convention, except for certain financial instruments and assets measured at fair value as required by relevant Ind AS.

b Property, Plant and Equipment

Property, Plant and Equipment are stated at cost, less accumulated depreciation / amortisation. Costs include all expenses incurred to bring the asset to its present location and condition.

c Depreciation / amortisation

In respect of Property, Plant and Equipment (other than freehold land and capital work-in-progress) acquired during the year, depreciation/amortisation is charged on a Written Down Value Method.

d Impairment

At each balance sheet date, the management reviews the carrying amounts of its assets included in each cash generating unit to determine whether there is any indication that those assets were impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of impairment. Recoverable amount is the higher of an asset's net selling price and value in use. In assessing value in use, the estimated future cash flows expected from the continuing use of the asset and from its disposal are discounted to their present value using a pre-tax discount rate that reflects the current market assessments of time value of money and the risks specific to the asset. Reversal of impairment loss is recognised as income in the statement of profit and loss.

e Investments

Long-term investments and current maturities of long-term investments are stated at cost, less provision for other than temporary diminution in value. Current investments, except for current maturities of long-term investments, comprising investments in mutual funds, government securities and bonds are stated at the lower of cost and fair value.

f Revenue recognition

Revenue from the sale of goods is recognized when control of the goods is transferred to the customer, which is generally upon delivery in accordance with the terms of sale, and when the Company has no further managerial involvement or effective control over the goods.

Revenue is measured at the transaction price agreed with the customer, which is adjusted for variable consideration such as discounts, rebates, or returns, where applicable. Export sales are recognized on the basis of shipping bills and bill of lading as evidence of transfer of control outside India.

Interest income is recognised on time proportion basis taking into account the amount outstanding and the rate applicable.

g Taxation

Current income tax expense comprises taxes on income from operations in India and in foreign jurisdictions. Income taxpayable in India is determined in accordance with the provisions of the Income Tax Act, 1961. Tax expense relating to foreign operations is determined in accordance with tax laws applicable in countries where such operations are domiciled.

Minimum Alternative Tax (MAT) paid in accordance with the tax laws in India, which gives rise to future economic benefits in the form of adjustment of future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax after the tax holiday period. Accordingly, MAT is recognised as an asset in the balance sheet when the asset can be measured reliably and it is probable that the future economic benefit associated with it will fructify.

Deferred tax expense or benefit is recognised on timing differences being the difference between taxable income and accounting income that originate in one period and is likely to reverse in one or more subsequent periods. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.

Advance taxes and provisions for current income taxes are presented in the balance sheet after off-setting advance tax paid and income tax provision arising in the same tax jurisdiction for relevant tax paying units and where the Company is able to and intends to settle the asset and liability on a net basis.

The Company offsets deferred tax assets and deferred tax liabilities if it has a legally enforceable right and these relate to taxes on income levied by the same governing taxation laws.

h Foreign currency transactions

Foreign currency transactions are recorded at the exchange rates prevailing on the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into Indian Rupees at the exchange rate prevailing at the reporting date. Non-monetary items that are measured at historical cost are translated using the exchange rate at the date of the transaction.

Exchange differences arising on the settlement or translation of monetary items are recognized in the Statement of Profit and Loss in the year in which they arise.

The Company undertakes import and export transactions in foreign currencies. Revenue from exports and expenses on imports are recorded at the rates prevailing on the transaction dates. Any exchange differences arising on realisation or settlement are accounted for as per the provisions of Ind AS 21 - The Effects of Changes in Foreign Exchange Rates.

i Inventories

Raw materials are carried at the lower of cost and net realisable value. Cost is determined on a weighted average basis. Purchased goods-in-transit are carried at cost. Work-in-progress is carried at the lower of cost and net realisable value. Stores and spare parts are carried at lower of cost and net realisable value. Finished goods produced or purchased by the Company are carried at lower of cost and net realisable value. Cost includes direct material and labour cost.

j Provisions, Contingent liabilities and Contingent assets

A provision is recognised when the Company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which reliable estimate can be made. Provisions (excluding retirement benefits and compensated absences) are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent liabilities are not recognised in the financial statements. A contingent asset is neither recognised nor disclosed in the financial statements.

k Cash and cash equivalents

The Company considers all highly liquid financial instruments, which are readily convertible into known amount of cash that are subject to an insignificant risk of change in value and having original maturities of three months or less from the date of purchase, to be cash equivalents.

l Current vs Non-Current Classification

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

1) An asset is classified as current if it is expected to be realised in the Company's normal operating cycle, held for trading, expected to be realised within twelve months, or is cash/cash equivalent.

2) A liability is classified as current if it is expected to be settled in the Company's normal operating cycle, held for trading, due to be settled within twelve months, or for which the Company has no unconditional right to defer settlement beyond twelve months.

3) All other assets and liabilities are classified as non-current.

m Earnings Per Share (EPS)

Basic EPS is calculated by dividing the net profit attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

Diluted EPS adjusts the figures used in the determination of basic EPS to reflect the potential dilution that could occur if convertible instruments were converted into equity shares.

n Employee Benefits

Short-term employee benefits (such as salaries payable within twelve months) are recognised as an expense in the Statement of Profit and Loss as services are rendered.

o Financial Instruments

1. Financial Assets

Financial assets are recognised when the Company becomes a party to the contractual provisions of the instrument.

• Initial recognition is at fair value, plus transaction costs (except for those measured at fair value through profit or loss).

• Subsequent measurement is based on the classification:

1. Measured at amortised cost: Assets held to collect contractual cash flows representing solely payments of principal and interest.

2. Measured at fair value through other comprehensive income (FVOCI): Assets held to collect and sell.

3. Measured at fair value through profit or loss (FVTPL): All other financial assets.

• Derecognition occurs when contractual rights to the cash flows expire or are transferred.

2. Financial Liability

Financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument.

• Initially recognised at fair value net of transaction costs.

• Subsequently measured at amortised cost using the effective interest method, except for financial liabilities at FVTPL.

• Derecognition occurs when obligations are discharged, cancelled, or expired.

p Fair Value Measurement

Fair value of an asset or liability is the price that would be received to sell an asset or paid to transfer a liability in an

• Fair value is determined using valuation techniques that maximise the use of observable inputs and minimise the use of

• The Company categorises fair value measurement into three levels:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access at the measurement date.

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).

Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs).

3 | USE OF ESTIMATES

The preparation of financial statements requires the management of the Company to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to the contingent liabilities as at the date of the financial statements and reported amounts of income and expense during the year. Examples of such estimates include provisions for doubtful receivables, provision for income taxes, the useful lives of depreciable Property, Plant and Equipment and provision for impairment. Future results could differ due to changes in these estimates and the difference between the actual result and the estimates are recognised in the period in which the results are known / materialise.