Q. Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognised only when:

a) the company has a present obligation (legal or constructive) as a result of a past event;

b) it is probable that an outflow of resources embodying economic benefits will be required to settle the
obligation; and

c) a reliable estimate can be made of the amount of the obligation.

Provision is measured using the cash flows estimated to settle the present obligation and when the effect of
time value of money is material, the carrying amount of the provision is the present value of those cash flows.
Reimbursement expected in respect of expenditure required to settle a provision is recognised only when it is
virtually certain that the reimbursement will be received.

Contingent liability is disclosed in case of:

a) a present obligation arising from past events, when it is not probable that an outflow of resources will be
required to settle the obligation; and

b) a present obligation arising from past events, when no reliable estimate is possible.

Contingent assets are disclosed where an inflow of economic benefits is probable.

Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet date.

Department appeals, in respect of cases won by the Company, are also considered as Contingent Liabilities.

R. Cash and Cash Equivalents

Cash and cash equivalents include cash and cheques in hand, bank balances, demand deposits with banks
and other short term highly liquid investments that are readily convertible to know amounts of cash and which
are subject to an insignificant risk of changes in value where original maturity is three months or less.

S. Statement of Cash Flows

Statement of Cash Flows is prepared segregating the cash flows into operating, investing and financing
activities. Cash flow from operating activities is reported using indirect method, adjusting the net profit for the
effects of:

i. changes during the period in inventories and operating receivables and payables transactions of a non¬
cash nature;

ii. non-cash items such as depreciation, provisions, deferred taxes, unrealised foreign currency gains and
losses, andundistributed profits of associates; and

iii. all other items for which the cash effects are investing or financing cash flows.

Cash and cash equivalents (including bank balances) shown in the Statement of Cash Flows exclude items
which are not available for general use as on the date of Balance Sheet.

Notes

Terms /Rights attached to Equity Shares

The Company has only one class of shares referred to as equity shares having a par value Rs. 10/- per share. Each
holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees.
Payment of dividend is also made in foreign currency to shareholders outside India.

As Per the Companies Act 2013, the holders of equiy shares will be entitled to receive remaining assets of the
company, after distirbution of all the preferential amounts in the event of liquidation of the Company. The distribution
will be in proportion to the number of equity shares held by the shareholders.

The Company has bought back 6,34,379 Equity Shares in FY 2013-14, 7,85,294 Equity Shares in FY 2014-15,
14,95,327 Equity Shares in FY 2015-16, 9,98,085 Equity Shares in FY 2017-18 and 8,61,915 Equity Shares in FY
2021-22.

General Reserve : The general reserves are the retained earnings of the company which are kept aside out of
company's profit to meet future (knowm or unknown) obligations. The general reserves is a free reserve which can
be utilized for any purpose after fulfiling certain conditions.

Capital Redemption Reserve : The Capital Redemption Reseve is craeted out of buy back of shares, the
company may issue fully paidup bonus shares to its memebers out of capital redemoption reserve account.
Retained Earnings : The retained earnings are the profit that the company has earned to date, less any dividends
or other distributions made to investors.

Share Warrant : During the financial year 2024-25, the Company issued 11,70,000 share warrants at an issue
price of Rs. 292 per warrant, with an upfront payment of Rs. 73 per warrant (constituting 25% of the issue price).
Each warrant entitles the holder to apply for and be allotted one equity share of Rs. 10 each at a premium of Rs. 282
per share, upon payment of the balance amount of Rs. 219 per warrant.The warrants are exercisable within 9
months from the date of allotment. The amount received against share warrants as of March 31,2025, is Rs. 8.54
Crore, which is presented under ‘Money received against share warrants' within ‘Shareholders' Funds' in the
Balance Sheet.

Fair value of financial assets and liabilities measured at amortized cost is not materially different from the
amortized cost. Further, impact of time value of money is not significant for the financial instruments classified
as current. Accordingly, the fair value has not been disclosed separately.

Types of inputs are as under:

Input Level I (Directly Observable) which includes quoted prices in active markets for identical assets such
as quoted price for an equity security on Security Exchanges.

Input Level II (Indirectly Observable) which includes prices in active markets for similar assets such as
quoted price for similar assets in active markets, valuation multiple derived from prices in observed transactions
involving similar businesses etc.

Input Level III (Unobservable) which includes management's own assumptions for arriving at a fair value
such as projected cash flows used to value a business etc.

B. Measurement of fair values

Valuation techniques and significant unobservable inputs
Transfers between Levels 1 and 2

There have been no transfers between Level 1 and Level 2 during the reporting periods
Level 2 fair values

Movements in the values of unquoted equity instruments for the period ended 31st March 2025 and 31st March

2024 is as belowr

C. Financial Risk Management

The Company's principal financial liabilities comprises of loans & borrowings and trade & other payables. The
main purpose of these financial liabilities is to finance the Company operations and to provide guarantees to
support its operations. The Company's principal financial assets include trade & other receivables, cash &
cash equivalents and investments that are derived directly from its operations.The Company has exposure to
the following risks arising from financial instruments:

i. Credit Risk

ii. Liquidity Risk

iii. Market Risk

(i) Credit Risk

Credit risk is the risk that a customer or counterparty to a financial instrument will fail to perform or fail to
pay amounts due causing financial loss to the company. The potential activities where credit risks may
arise include from cash and cash equivalents, derivative financial instruments and security deposits or
other deposits and principally from credit exposures to customers relating to outstanding receivables.
The maximum credit exposure associated with financial assets is equal to the carrying amount. Details
of the credit risk specific to the company along with relevant mitigation procedures adopted have been
enumerated below:

Trade Receivables

The Company's exposure to credit Risk is the exposure that Company has on account of services
rendered to a contractual counterparty or counterparties, whether with collateral or otherwise for which
the contracted consideration is yet to be received. The Company's customer base are Industrial and
Commercial.

The above receivables which are past due but not impaired are assessed on case-to-case basis. The
instances pertain to third party customers which have a proven creditworthiness record. Management is
of the view that these financial assets are not impaired as there has not been any adverse change in
credit quality and are envisaged as recoverable based on the historical payment behaviour and extensive
analysis of customer credit risk, including underlying customers' credit ratings, if they are available.
Consequently, no additional provision has been created on account of expected credit loss on the
receivables. There are no other classes of financial assets that are past due but not impaired. The
provision for impairment of trade receivables, movement of which has been provided below, is not
significant / material. The concentration of credit risk is limited due to fact that the customer base is large
and unrelated.

Other Financial Assets

Other financial assets comprise of cash and cash equivalents, loans provided to employees and
investments in equity shares of companies other than subsidiaries, associates and joint ventures.

- Cash and cash equivalents and Bank deposits are placed with banks having good reputation and past
track record with adequate credit rating. The Company reviews their credit-worthiness at regular intervals.

- Investments are made in credit worthy companies.

(ii) Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated
with its financial liabilities that are proposed to be settled by delivering cash or other financial asset. The
Company's financial planning has ensured, as far as possible, that there is sufficient liquidity to meet the
liabilities whenever due, under both normal and stressed conditions, without incurring unacceptable
losses or risking damage to the Company's reputation.

Exposure to Liquidity Risk

The following are the remaining contractual maturities of financial liabilities at the reporting date. The
amounts are gross / undiscounted values and include estimated interest payments and exclude the
impact of netting agreements.

Interest Rate Risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value
interest rate risk is the risk of changes in fair values of fixed interest bearing investments because of
fluctuations in the interest rates. Cash flow interest rate risk is the risk that the future cash flows of floating
interest bearing investments will fluctuate because of fluctuations in the interest rates. The Company
does not have any undrawn or outstanding borrowings at fluctuating rate of interest and hence does not
possess any interest rate risk.

D. Capital Management

The Company defines capital as total equity including issued equity capital, share premium and all other equity
reserves attributable to equity holders of the Company (which is the Company's net asset value). The primary
objective of the Company's financial framework is to support the pursuit of value growth for shareholders, while
ensuring a secure financial base.

The Company monitors capital using a ratio of ‘adjusted net debt' to ‘adjusted equity'. For this purpose,
adjusted net debt is defined as total liabilities, comprising interest-bearing loans and borrowings and obligations
under finance leases, less cash and cash equivalents. Adjusted equity comprises all components of equity.

Note 40

Other Statutory Information

The Company does not have anything to report in respect of the following

a) Transactions with the companies struck off as per Companies Act, 2013.

b) In respect to benami property held, company has no such benami property held.

c) Immovable property of which title deeds are not held in the name of the company.

d) Non-compliance with number of layers as prescribed under the Companies Act, 2013, read with Companies
(Restriction on number of Layers) Rules, 2017.

e) Trading or investing in crypto or vertual currency.

f) Transactions not recorded in books that were surrendered or disclosed as income during income-tax
assessment.

g) Charges or satisfaction not registered with ROC beyond statutory period.

h) Giving / receiving of any loan or advance or funds with the understanding that the recipient shall lend, invest,
provide security or guarantee on behalf of the Company / funding party.

i) Wilful Defaulter by any bank or financial institution or other lender.

Note : 42

Corporate Social Responsibility (CSR) Activity

Total Expenditure towards CSR Activity - -

Amount Required to be spent U/s 135 of Companies Act, 2013 - -

Excess (Short) - -

In terms of Amendment to Companies (Corporate Social Responsibility Policy Amendment Rules, 2021 (the CSR
Rules, 2021) effective from 22nd January, 2021, if a company fails to spend the prescribed CSR amount during the
year and such unspent amount pertains to any ongoing project, the company shall transfer the unspent amount to
a special bank account to be opened by the comany in that behalf for that financial year in any scheduled bank to be
called the Unspent Corporate Social Responsibility Account within specified period from the end of the relevant
financial year.

Note : 43

Figures of previous year have been recasted / restated where necessary.

The notes on accounts form integral part of the financial statements 1 to 44

As per our Report of even date attached

For, MAAK & Associates F d T be^f. B d Ý ?V^rectors

Chartered Accountants ^GuJ^{arat A}p°^M° ^Industries Limited

FRN : 135024W ^{Neha Chikani Shah}

^Comp^any ^Secretary Arjun A. Patel Asit A. Patel

M^Art^{RMIK G SHAH Mem}. ^NoA25420 Whole-time Director Managing Director

M^aem^eNo. 133926 Nirav A. Shah ^DIN : ^{09088869 DIN} : ^00093332

Place : Ahmedabad ^{Chief Financial Officer Pl}ace : ^Ahme^da^ba^d

Date : 30.05.2025 ^{Date : 30.05.2025}