Notes to Accounts of Euro Pratik Sales Ltd.

2.14 Provisions, Contingent Liabilities and Contingent Assets

The Company estimates the provisions that have present obligations as a result of past events, and it is probable
that outflow of resources will be required to settle the obligations. These provisions are reviewed at the end of each
reporting period and are adjusted to reflect the current best estimates.

The Company uses significant judgements to assess contingent liabilities. Contingent liabilities are disclosed when
there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence
or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present
obligation that arises from past events where it is either not probable that an outflow of resources will be required to
settle the obligation or a reliable estimate of the amount cannot be made. Contingent assets are neither recognised nor
disclosed in the Standalone Financial Statements.

2.15 Fair Value measurement

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. The fair value measurement is based on the presumption that
the transaction to sell the asset or transfer the liability takes place either:

¦ In the principal market for the asset or liability, or

¦ In the absence of a principal market, in the most advantageous market which can be accessed by the Company for
the asset or liability.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when
pricing the asset or liability, assuming that market participants act in their economic best interest.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data
are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of
unobservable inputs.

AH assets and liabilities for which fair value is measured or disclosed are categorized within the fair value hierarchy,
described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

¦ Level 1 Quoted (unadjusted) market prices in active markets for identical assets or liabilities

¦ Level 2 Valuation techniques for which the lowest level input that is significant to the fair value measurement is
directly or indirectly observable

¦ Level 3 Valuation techniques for which the lowest level input that is significant to the fair value measurement
is unobservable

For assets and liabilities that are recognized on a recurring basis, the Company determines whether transfers have
occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level input that is
significant to the fair value measurement as a whole) at the end of each reporting period.

2.16 Financial Assets

Initial recognition and measurement

All financial assets are recognized initially at fair value plus, in the case of financial assets not recorded at fair value
through profit or loss, transaction costs that are attributable to the acquisition of the financial asset.

Subsequent measurement

Subsequent measurement is determined with reference to the classification of the respective financial assets. Based
on the business model for managing the financial assets and the contractual cash flow characteristics of the financial
asset, the Company classifies financial assets as subsequently measured at amortized cost, fair value through other
comprehensive income or fair value through profit and loss.

Debt instruments at amortized cost

Debt instruments such as trade and other receivables, security deposits and loans given are measured at the amortized
cost if both the following conditions are met:

¦ The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and

¦ Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and
interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortized cost using the effective
interest rate (EIR) method. Amortized cost is calculated by taking into account any discount or premium on acquisition
and fees or costs that are an integral part of the EIR. The EIR amortization is included in finance income in the profit or
loss. The losses arising from impairment are recognized in the profit or loss.

Debt instruments at Fair value through Other Comprehensive Income (FVOCI)

A ''debt instrument'' is classified as at the FVOCI if both of the following criteria are met:

¦ The objective of the business model is achieved both by collecting contractual cash flows and selling the financial
assets, and

¦ The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest (SPPI) on the principal amount outstanding

Debt instruments included within the FVOCI category are measured initially as well as at each reporting date at fair
value. Fair value movements are recognized in the other comprehensive income (OCI).

Debt instruments at Fair value through Profit or Loss (FVTPL)

FVTPL is a residual category for debt instruments excluding investments in subsidiary companies. Any debt instrument,
which does not meet the criteria for categorization as at amortized cost or as FVOCI, is classified as at FVTPL.

After initial measurement, any fair value changes including any interest income, foreign exchange gain and losses,
impairment losses and other net gains and losses are recognized in the Statement of Profit and Loss.

Equity investments

AH equity investments in scope of Ind-AS 109 are measured at fair value. Equity instruments which are held for trading
are classified as at Fair value through Profit and Loss (FVTPL). The company makes such election on an instrument-by¬
instrument basis. The classification is made on initial recognition and is irrevocable.

Equity instruments included within the FVTPL category are measured at fair value with all changes recognized in the
Profit or loss.

De-recognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is
primarily derecognized (i.e. removed from the Company''s Balance Sheet) when

¦ The rights to receive cash flows from the asset have expired, or the Company has transferred its rights to receive
cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay
to a third party under a ''pass-through'' arrangement; and either:

¦ The Company has transferred substantially all the risks and rewards of the asset, or

¦ The Company has neither transferred nor retained substantially all the risks and rewards of the asset but has
transferred control of the asset.

On de-recognition, any gains or losses on all debt instruments (other than debt instruments measured at FVOCI)
and equity instruments (measured at FVTPL) are recognized in the Statement of Profit and Loss. Gains and losses in
respect of debt instruments measured at FVOCI and that are accumulated in OCI are reclassified to profit or loss on de¬
recognition. Gains or losses on equity instruments measured at FVOCI that are recognized and accumulated in OCI are
not reclassified to profit or loss on de-recognition.

2.17 Impairment of financial assets

The Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss on the
following financial assets and credit risk exposure:

a. Financial assets that are debt instruments, and are measured at amortized cost e.g., loans, debt securities, deposits,
trade receivables and bank balance.

b. Financial assets measured at fair value through other comprehensive income.

In case of other assets (listed as a) above), the company determines if there has been a significant increase in credit risk
of the financial asset since initial recognition. If the credit risk of such assets has not increased significantly, an amount
equal to 12-month ECL is measured and recognized as loss allowance. However, if credit risk has increased significantly,
an amount equal to lifetime ECL is measured and recognized as loss allowance.

2.18 Financial Liabilities

Initial recognition and measurement

All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of
directly attributable transaction costs.

The Company''s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts.
Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:

Financial Liabilities at Fair Value through Profit or Loss (FVTPL)

Financial liabilities at fair value through profit or loss include financial liabilities designated upon initial recognition as
at fair value through profit or loss.

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated at the initial
date of recognition, and only if the criteria in Ind-AS 109 are satisfied. For liabilities designated as FVTPL, fair value
gains/ losses attributable to changes in own credit risk is recognized in OCI. These gains/ losses are not subsequently
transferred to profit or loss. However, the company may transfer the cumulative gain or loss within equity. All other
changes in fair value of such liability are recognized in the statement of profit or loss.

Financial Liabilities at amortized cost

Financial liabilities classified and measured at amortized cost such as loans and borrowings are initially recognized at
fair value, net of transaction cost incurred. After initial recognition, financial liabilities are subsequently measured at
amortized cost using the Effective interest rate (EIR) method. Gains and losses are recognized in profit or loss when the
liabilities are derecognized as well as through the EIR amortization process.

Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are
an integral part of the EIR. The EIR amortization is included as finance costs in the statement of profit and loss.

Derecognition

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When
an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms
of an existing liability are substantially modified, such an exchange or modification is treated as the de-recognition
of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is
recognized in the statement of profit or loss.

Offsetting of financial instruments

Financial assets and financial liabilities are offset, and the net amount is reported in the standalone balance sheet if
there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net
basis, to realize the assets and settle the liabilities simultaneously. The legally enforceable right must not be contingent
on future events and must be enforceable in the normal course of business and in the event of default, insolvency or
bankruptcy of the company, or the counterparty.

2.19 Borrowings

Borrowings are initially recognized at fair value, net of transaction costs incurred. Borrowings are subsequently
measured at amortized cost. Any differences between the proceeds (net of transaction costs) and the redemption
amount is recognized in Profit or loss over the period of the borrowing using the effective interest method. Fees paid on
the establishment of loan facilities are recognized as transaction costs of the loan to the extent that it is probable that
some or all of the facilities will be drawn down. In this case, the fee is deferred until the drawdown occurs.

The borrowings are removed from the Balance sheet when the obligation specified in the contract is discharged,
cancelled or expired. The difference between the carrying amount of the financial liability that has been extinguished or
transferred to another party and the consideration paid including any noncash asset transferred or liabilities assumed,
is recognized in profit or loss as other gains/(losses).

Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of
the liability of at least 12 months after the reporting period. Where there is a breach of a material provision of a long¬
term loan arrangement on or before the end of the reporting period with the effect that the liability becomes payable
on demand on the reporting date, the entity does not classify the liability as current, if the lender agreed, after the
reporting period and before the approval of the Standalone Financial Statement for issue, not to demand payment as
a consequence of the breach.

2.20 Borrowing Cost

Borrowing costs directly attributable to the construction or production of a qualifying asset are capitalized during
the period of time that is required for the acquisition, construction or production of an asset that necessarily takes a
substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the asset. All
other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and other
costs (including exchange differences relating to foreign currency borrowings to the extent that they are regarded as an
adjustment to interest costs) that an entity incurs in connection with the borrowing of funds.

2.21 Taxes on Income
Current and Deferred Tax

Current tax is the amount of tax payable determined in accordance with the applicable tax rates and provisions of the
Income Tax Act, 1961 and other applicable tax laws.

Deferred tax is recognized on differences between the carrying amounts of assets and liabilities in the Balance sheet
and the corresponding tax bases used in the computation of taxable profit and are accounted for using the liability
method. Deferred tax liabilities are generally recognized for all taxable temporary differences, and deferred tax assets
are generally recognized for all deductible temporary differences, carry forward tax losses and allowances to the extent
that it is probable that future taxable profits will be available against which those deductible temporary differences,
carry forward tax losses and allowances can be utilized. Deferred tax assets and liabilities are measured at the applicable
tax rates. Deferred tax assets and deferred tax liabilities are off set and presented as net.

Current and deferred taxes relating to items directly recognized in reserves are recognized in reserves and not in the
Statement of Profit and Loss.

2.22 Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post-tax effect of extraordinary
items, if any) by the weighted average number of equity shares outstanding during the year. Diluted earnings per
share is computed by dividing the profit / (loss) after tax (including the post-tax effect of extraordinary items, if any)
as adjusted for dividend, interest and other charges to expense or income (net of any attributable taxes) relating to
the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic
earnings per share and the weighted average number of equity shares which could have been issued on the conversion
of all dilutive potential equity shares.

2.23 Cash and Cash equivalents

For the purpose of presentation in statement of cash flows, cash and cash equivalents includes cash on hand, deposit
held at call with financial institution, other short term, highly liquid investments with original maturities of 3 months or
less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in
value, and bank overdrafts. Bank Overdrafts are shown within borrowings in current liabilities in Balance sheet.

2.24 Cash Flows

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted
for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or
payments. The cash flows from operating, investing and financing activities of the Company are segregated based on
the available information.

2.25 Dividend

Final dividend on shares is recorded as a liability on the date of approval by the shareholders and Interim dividends
are recorded as a liability on the date of declaration by the Company''s Board of Directors.

2.26 Segment Reporting

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.

2.27 Recent Pronouncements:

i) Amendments to Ind AS 21 - Lack of Exchangeability

In May 2025, the Ministry of Corporate Affairs (MCA) notified amendments to Ind AS 21, The Effects of Changes in
Foreign Exchange Rates. The amendments provide guidance on assessing whether a currency is exchangeable into
another currency and on determining the spot exchange rate when exchangeability is lacking. The amendments
also introduce additional disclosure requirements to enable users of financial statements to understand the
impact, or expected impact, of a currency not being exchangeable on an entity''s financial performance, financial
position and cash flows.

The amendments are effective for annual reporting periods beginning on or after April 1, 2025. Comparative
information is not required to be restated upon initial application of these amendments.

The Company has evaluated the impact of the amendments and concluded that they do not have a material
impact on its financial statements.

ii) Amendments to Ind AS 1 - Classification of Liabilities as Current or Non-Current and Non-Current Liabilities
with Covenants

In August 2025, the Ministry of Corporate Affairs (MCA) notified amendments to Ind AS 1, Presentation of Financial
Statements, which clarify the requirements for classifying liabilities as current or non-current. The amendments
clarify that:

¦ An entity''s right to defer settlement of a liability must exist at the end of the reporting period;

¦ Classification of a liability is based on rights that exist at the reporting date and is not affected by management''s
expectations or intentions regarding the exercise of such rights;

¦ Only covenants with which an entity is required to comply on or before the reporting date affect the
classification of a liability; and

¦ The classification of a liability is unaffected by the possibility that the counterparty may choose to settle the
liability through the transfer of the entity''s equity instruments, unless the conversion feature is classified as
an equity instrument.

The amendments also require additional disclosures for non-current liabilities arising from loan arrangements
that are subject to covenants to be complied with after the reporting period but within twelve months from the
reporting date.

Further, where a breach of a material covenant under a long-term borrowing arrangement occurs on or before the
reporting date, resulting in the liability becoming payable on demand, and the lender agrees after the reporting
period but before the approval of the financial statements not to demand repayment for at least twelve months,
such waiver shall be treated as an adjusting event. Accordingly, the liability is not required to be classified
as current.

The amendments are effective for annual reporting periods beginning on or after April 1, 2025, and are to be applied
retrospectively in accordance with Ind AS 8, Accounting Policies, Changes in Accounting Estimates and Errors.

The Company has assessed the impact of these amendments and concluded that they do not have a material
impact on its financial statements.

iii) Amendments to Ind AS 7 and Ind AS 107 - Supplier Finance Arrangements

In August 2025, the Ministry of Corporate Affairs (MCA) notified amendments to Ind AS 7, Statement of Cash Flows,
and Ind AS 107, Financial Instruments: Disclosures, relating to supplier finance arrangements.

The amendments clarify the characteristics of supplier finance arrangements and introduce additional disclosure
requirements to enhance transparency regarding such arrangements. These disclosures are intended to enable
users of financial statements to better understand the effects of supplier finance arrangements on an entity''s
liabilities, cash flows and exposure to liquidity risk.

The amendments require entities to disclose qualitative and quantitative information about supplier finance
arrangements, including the terms and conditions of such arrangements, the carrying amounts of related financial
liabilities, and information about liquidity risk arising from these arrangements.

The amendments are effective for annual reporting periods beginning on or after April 1, 2025.

The Company has evaluated the impact of these amendments and concluded that they do not have a material
impact on its financial statements.

iv) International Tax Reform - Pillar Two Model Rules - Amendments to Ind AS 12

In August 2025, the Ministry of Corporate Affairs (MCA) notified amendments to Ind AS 12, Income Taxes, in response
to the OECD''s Base Erosion and Profit Shifting (BEPS) Pillar Two Model Rules.

The amendments introduce:

¦ A mandatory temporary exception from the recognition and disclosure of deferred tax assets and liabilities
arising from the implementation of the Pillar Two Model Rules in various jurisdictions; and

¦ Additional disclosure requirements to enable users of financial statements to better understand an entity''s
exposure to Pillar Two income taxes arising from the related legislation, particularly before such legislation
becomes effective.

The mandatory temporary exception applies immediately upon issuance of the amendments and entities are
required to disclose their application of this exception. The remaining disclosure requirements are effective for
annual reporting periods beginning on or after April 1, 2025, but are not required for interim reporting periods
ending on or before March 31, 2026.

The Company has assessed the impact of these amendments and concluded that they do not have a material
impact on its financial statements.

The Company has assessed the impact of the amendments and the same are not expected to have a material
impact on the Company.

(i) The Company has not revalued its property, plant and equipment during the year.

(ii) Title deeds of all immovable properties comprising buildings which are freehold are in the name of the Company.

(iii) The Company has assessed recovarable amount of Property, Plant and Equipment by estimating its Value in Use. Based
on aforementioned assessment it has been concluded that the recoverable amount is higher than the respective
carrying amount.

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

(v) For details of assets acquired under Business Combination during FY 2024-25, refer Note 49.

(vi) Refer Note 52 for asset lost by fire.

(i) The Company has not revalued its Intangible Assets during the year.

(ii) The Company has assessed recoverable amount ofIntangibie Assets by estimating its Value in Use. Based on aforementioned
assessment it has been concluded that the recoverable amount is higher than the respective carrying amount.

(iii) The Company does not have any intagibie assests under development.

(iv) For details of assets acquired under Business Combination, refer Note 49 in FY 24-25.

(v) The Company has acquired 51% (fifty One Percent) share in right, title and interest in profits as weii participation in the
Management persuant to share purchase agreement, Control of Uro Veneer World from Retiring Partner of Partnership
firm for a consideration of Rs. 6,630 iakh. The same has been accounted as Participating Rights under Intangible Assets
and is subject to impairment.

6.3 Notes:

(i) Title deeds of all investment properties are held in the name of the Company.

(ii) The Company has assessed recoverable amount of Investment Property by estimating its Value in Use. Based on
aforementioned assessment it has been concluded that the recoverable amount is higher than the respective carrying
amount.

(iii) The company does not have any Benami property, where any proceeding has been initiated or pending against the
company for holding any Benami property

(iv) The fair value of Investment Property as on March 31, 2026 and March 31, 2025 is based on the management estimate.

6. Investment Property (Contd.)

(v) The Company''s investment properties consist of commercial property in India given on [ease for a period of 5 years.

(vi) The Company has not revalued its Investment Properties during the year.

(vii) For details of Investment Property given on Operating Lease refer note 44.8.

(viii) The company has no restrictions on the readability of its investment property.

(ix) The company has no contractual obligations to purchase, construct or develop investment property except for repairs
and maintenance.

(x) The fair value measurement of a[[ of the Investment Property has been categorized as a Level 2 fair value.

8. Non-current Financial Assets - Loans (Contd.)

(ii) The Loans to others is repayable within 48 Months from date of the loan. Interest of 18% per annum is accrued and
received annually.

(iii) The Company has not granted any loans or advances in the nature of loans to promoters, directors and KMPs, either
severally or jointly with any other person.

(iv) Refer Note 40 for Loan given to related parties.

18.2 Terms and Rights Attached to Equity Shares

The Company has only one class of Equity Shares having a par value of Rs. 1 per share. Each holder of Equity share is entitled
to one vote per Equity share. The Company declares and pays dividend in Indian Rupees.

The 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.

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. The distribution will be in proportion to the number of Equity shares
held by the shareholders.

18.3 The Company allotted 69,40,500 equity shares as fully paid up bonus shares by capitalisation of profits transferred from
securities premium account amounting to Rs. 432.14 lakh and Retained Earnings amounting to Rs. 261.91 lakh in the year ended
Macrh 31, 2025, pursuant to the resolution passed at Extra Ordinary General Meeting dated April 2, 2024.

18.4 The Board of Directors of the Company at their meeting held on August 12, 2024 had considered and approved the Stock
Split of every 1 equity share of the Face value of 10/- each into 10 equity shares of the Face value of 1/ - each and the same
has been approved by the shareholders of the Company at the Extra Ordinary General Meeting held on August 22, 2024. Post
record date, equity shares Increased from 89,23,500 shares to 8,92,35,000 shares. Accordingly Number of Equity Shares as on
March 31, 2025 has been restated. The Authorised Share Capital is increased to Rs. Rs.2,000 lakh (20,00,00,000 equity shares
of Rs.1 each) to give the effect to above.

18.5 The Board of Directors at its meeting held on September 28, 2024 allotted 1,29,65,000 shares to the Equity Shareholders
of the Company through Rights Issue at issue price of Re. 1 per share

As per records of the Company, including its register of shareholders/members and other declarations received from
shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.

18.7 For the period of five years immediately preceding the date as at which the Balance Sheet is prepared:

(a) No shares have been allotted as fully paid up pursuant to the contracts without payments being received in cash.

(b) Aggregate number and class of shares allotted as fully paid up by way of bonus shares

The Company allotted 16,40,000 equity shares as fully paid up bonus shares by capitalisation of profits transferred from
securities premium account amounting to Rs. 16.40 lakh in the year ended March 31, 2024, pursuant to the resolution
passed at EGM dated December 8, 2023.

(c) Aggregate number and class of shares bought back

(i) The Company bought back 1,00,000 equity shares for an aggregate amount of Rs.4,000 lakh being 19.61% of the total
paid up equity share capital at 4,000 per equity share. The equity shares bought back were extinguished on March
4, 2023.

(ii) The Company bought back 67,000 equity shares for an aggregate amount of Rs.3,015 lakh being 16.34% of the total
paid up equity share capital at 4,500 per equity share. The equity shares bought back were extinguished on March
14, 2024.

19.1 Nature and Purpose of Reserves

(i) Capital Redemption Reserve :

The Capital Redemption reserve is created upon buy back of shares by the company as per requirement of Section 69 of
the Companies Act, 2013

(ii) Securities Premium:

Securities premium is used to record premium received on issue of shares. This reserve will be utilized in accordance
with the provisions of the Act.

25. Trade Payables (Contd.)

Notes:

(i) Payment towards trade payables is made as per the terms and conditions of the contract / purchase orders and are non
interest bearing. The average credit period on goods purchased or services received ranges between 45 to 60 days.

(ii) The company''s exposure to financial risk and fair value measurement related to financial instruments is disclosed in
Note 41.

(iii) Under the Mirco, Small and Medium Enterprises Development Act, 2006 ("MSMED Act”), certain disclosures are required to
be made relating to MSME. On the basis of the information and records available with the Company''s management, dues
to MSME have been determined to the extent such parties have been identified on the basis of information collected till
the reporting date and has been relied upon by the Statutory Auditors. The Management has not provided for interest
due (if any) to these MSME parties basis, no claim being made for the same and management representation that the
same would be waived. The disclosures as required by Section 22 of the MSMED Act are given below.

40. Related party disclosures (Contd.)

40.3 ALL transactions with related party at undertaken at arm''s Length price.

40.4 Outstanding balances at the year-end are unsecured and interest free except for borrowings and settlement occurs in
cash. There have been no guarantees provided or received for any related party receivables or payables. For the year ended
March 31, 2026, the Company has not recorded any impairment of receivables relating to amounts owed by related parties
(March 31, 2025: Nil). This assessment is undertaken each financial year through examining the financial position of the
related party and the market in which the related party operates.

41. Financial Instruments

(i) Capital Management

For the purpose of the Company''s capitaL management, capitaL incLudes issued equity capitaL, convertibLe preference
shares, share premium and aLL other equity reserves attributabLe to the equity hoLders. The primary objective of the
Company''s capitaL management is to maximize the sharehoLder vaLue and to ensure the Company''s abiLity to continue
as a going concern.

The Company''s capital management is intended to create value for shareholders by facilitating the meeting of long-term
and short-term goals of the Company.

The Company determines the amount of capital required on the basis of annual operating plans and long-term product
and other strategic investment plans. The funding requirements are met through equity and other long-term/short-term
borrowings and internal surplus funds. The Company''s policy is aimed at combination of short-term borrowings and
utilization of internal funds. The Company monitors the capital structure on the basis of total debt to equity ratio. Total
borrowings includes all short-term borrowings as disclosed in notes 20.1 and 20.2 to the financial statements.

(ii) Calculation of Fair Values

The fair values of the financial assets and liabilities are defined as the price that would be received upom sale of an

asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The

following methods and assumptions were used to estimate the fair values of financial instruments:

a) The fair values of investment in quoted investments/units of mutual fund schemes are based on market price/net
asset value as at the reporting date.

b) Cash and cash equivalents, trade receivables, other current financial assets, trade payables, and other financial
liabilities have fair values that approximate to their carrying amounts due to their short-term nature.

c) The amortized cost using effective interest rate (EIR) of non-current financial assets consisting of security and term
deposits are not significantly different from the carrying amount.

d) Financial assets that are neither past due nor impaired include cash and cash equivalents, security deposits, term
deposits, and other financial assets.

(i) The carrying amounts of trade receivables, trade payables, cash and cash equivalents and other bank balances are
considered to be the same as their fair values, due to their short term nature.

(ii) The management believes the carrying amounts of financial assets and financial liabilities measured at amortised
cost approximate their fair values.

Fair value measurements recognized in the balance sheet:

The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at

fair value, companyed into Levels 1 to 3 based on the degree to which the fair value is observable.

- Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical
assets or liabilities.

- Level 2 fair value measurements are those derived from 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 fair value measurements are those derived from valuation techniques that include inputs for the asset or
liability that are not based on observable market data (unobservable inputs).

(iii) Financial risk management objectives:

The Company''s principal financial liabilities comprise of loan from banks and Loans from related parties and trade
payables. The main purpose of these financial liabilities is to raise finance for the company''s operations. The company has
various financial assets such as trade receivables, cash and short term deposits, which arise directly from its operations.

The main risks arising from Company''s financial instruments are foreign currency risk, credit risk, market risk and liquidity
risk. The Board of Directors review and agree policies for managing each of these risks and focus on securing long term
and short term cash flows. The Company does not engage in trading of financial assets for speculative purposes.

(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 trade and other receivables,
Company''s receivables from deposits with landlords and other statutory deposits with regulatory agencies and also
arises from cash held with banks and financial institutions, cash and cash equivalents and other bank balances.
The maximum exposure to credit risk in case of all the financial instruments covered below is restricted to their
respective carrying amount.

The Company limits its exposure to credit risk of cash held with banks by dealing with highly rated banks and
institutions and retaining sufficient balances in bank accounts required to meet a month''s operational costs. The
Management reviews the bank accounts on regular basis and fund drawdowns are planned to ensure that there is
minimal surplus cash in bank accounts. The Company does a proper financial and credibility check on the landlords
before taking any property on lease and hasn''t had a single instance of non-refund of security deposit on vacating
the leased property. The Company also in some cases ensure that the notice period rentals are adjusted against
the security deposits and only differential, if any, is paid out thereby further mitigating the non-realization risk. The
Company does not foresee any credit risks on deposits with regulatory authorities.

Trade and Other receivables

Customer credit is managed by management subject to the Company''s established policies, procedures and control
relating to customer credit risk management. Trade receivables are non-interest bearing and are generally upto
120 days credit term. Credit limits are established for all customers as decided by the management. Outstanding
customer receivables are regularly monitored.

The Company measures the expected credit loss of trade receivables based on historical trend, industry practices
and the business environment in which the entity operates. Loss rates are based on actual credit loss experience
and past trends.

An impairment analysis is performed at each reporting date using a provision matrix to measure expected credit
losses. The provision rates are based on days past due for groupings of various customer segments with similar
loss patterns (i.e., by geographical region, product type, customer type and rating, and coverage by letters of credit
or other forms of credit insurance). The calculation reflects the probability-weighted outcome, the time value of
money and reasonable and supportable information that is available at the reporting date about past events, current
conditions and forecasts of future economic conditions.

The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets.
The Company does not hold collateral as security. The Company evaluates the concentration of risk with respect to
trade receivables and contract assets as low, as its customers are located in several jurisdictions and industries and
operate in largely independent markets.

At March 31, 2026, the Company''s top three customers accounted for Rs. 8,191.59 lakh of the trade receivables carrying
amount (March 31, 2025 : Rs. 1,191.75 lakh.)

Expected credit loss assessment for customers:

Information about the exposure to credit risk and ECLs for trade receivables, refer note 12.1.

Other financial assets

The Company maintains exposure in cash and cash equivalents, term deposits with banks.

The Company held cash and cash equivalents of Rs. 699.71 lakh at March 31, 2026 (Rs. 822.65 lakh at March 31, 2025).
Cash and cash equivalents are held with reputable and credit-worthy banks.

Individual risk limits are set for each counter-party based on financial position, credit rating and past experience.
Credit limits and concentration of exposures are actively monitored by the Management of the Company.

Other than trade and other receivables, the Company has no other financial assets that are past due but not impaired.

(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 foreign currency risk, interest rate risk and other price risk, such
as equity price risk and commodity risk. Financial instruments affected by market risk include borrowings and
financial instruments.

(i) Foreign currency risk

The Company is exposed to currency risk on account of its operating activities. The functional currency of the
Company is Indian Rupee. Company''s exposure is mainly denominated in U.S. dollars (USD). The USD exchange
rate has changed substantially in recent periods and may continue to fluctuate substantially in the future. The
Company has put in place a Financial Risk Management Policy to Identify the most effective and efficient ways of
managing the currency risks. The Company uses EEFC Account to mitigate the risk of changes in foreign currency
exchange rate.

The Company does not use derivative financial instruments for trading or speculative purposes.

The carrying amounts of the Company''s financial assets and financial liabilities denominated in foreign currencies
at the reporting date are as follows:

(ii) Interest rate risk:

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market interest rates. The Company''s does not have any exposure to the risk of changes
in market interest rates as the borrowings of the companies are from related parties and other parties are at
fixed interest rate.

(iii) Other price risk:

The Company invests its surplus funds in various shares, mutual funds (debt fund, equity fund, liquid schemes
and income funds etc.), short term debt funds, government securities and fixed deposits. In order to manage its
price risk arising from investments, the Company diversifies its portfolio in accordance with the limits set by the
risk management policies.

Price sensitivity

The table below details the carrying amount of Investments:

(c) Liquidity risk:

The Company follows a conservative policy of ensuring sufficient liquidity at all times through a strategy of profitable
growth, efficient liquidity at all times through a strategy of profitable growth, efficient working capital management
as well as prudent capital expenditure. The Company has a overdraft facility with banks to support any temporary
funding requirements.

The Company believes that current cash and cash equivalents, tied up borrowing lines and cash flow that is generated
from operations is sufficient to meet requirements. Accordingly, liquidity risk is perceived to be low.

43. Discloures required as per Ind AS 19 Employee Benefits
Defined Contribution Plans

The company makes provident fund Employees State Insurance Scheme and Pension Scheme contributions to defined
contribution retirement benefit plans for eligible employees. Under the schemes, the Group is required to contribute a
specified percentage / fixed amount of the payroll costs to fund the benefits. The contributions as specified under the law
are paid to the provident fund set up by the government authority.”

Defined benefit plans - Gratuity

The company operates unfunded gratuity plan for qualifying employees. Under the plan, the employees are entitled to
retirement benefits depending upon the number of years of service rendered by them subject to minimum specified number
of years of service. The actuarial valuation of plan assets and the present value of defined benefit obligation were carried out
for the years presented by the certified actuarial valuer. The present value of the defined benefit obligation related current
service cost and past service cost were measured using the projected unit credit method.

A) Defined contribution plans

Contribution to Defined Contribution Plan, recognised as an expense and included in "Employee Benefits Expense”- Note
34 in the Statement of profit and loss are as under :

Assumptions

i) The discount rate are based on the benchmark yields available on government Bonds at the valuation date with terms
matching that of the liabilities.

ii) The salary increase rates takes into account inflation, seniority, promotion and other relevant factors.

iii) The present value of the defined benefit obligation were carried out at March 31, 2026, March 31, 2025. The present value
of the defined benefit obligation and the related current service cost and past service cost, were measured using the
Projected Unit Credit Method.

44. Ind AS 116 Leases
(I) As Lessee

The Company has aquired Offices and Godowns under operating lease with tenure ranging from 1 to 5 Years and more
than 5 Years for its operations. The Said agreements are non cancellable agreements.

The Company''s obligations under its leases are secured by the lessor''s title to the leased assets.

The Company also has certain leases of godowns with lease terms of 12 months or less and leases of godowns with low
value. The Company applies the ''short-term lease'' and ''lease of low-value assets'' recognition exemptions for these leases.

44.6 The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are
sufficient to meet the obligations related to lease liabilities as and when they fall due.

44.7 The Company has applied a single discount rate to a portfolio of leases of a similar assets in similar economic
environment with similar end date.

(II) AS a Lessor

44.8 Operating Lease

The Company has entered into operating leases on its office buildings and premises. These leases have terms of 5 years.
The Rental Income received by company during the year ended March 31, 2026 was Rs. 63.50 lakh (March 31, 2025 : Rs.60.50
lakh) and recognised Rs. 64.28 lakh for the year ended March 31, 2026 and Rs. 61.06 lakh for the year ended March 31, 2025
in the statement of Profit and Loss.

Reason for change more than 25%:

The return on investment ratio decreased during the year primarily due to redemption of investments to fund the Company''s

operations and other financial commitments and lower returns earned on investments.

48. Ind AS 10 Events after the reporting period

There are no subsequent events which are in the nature of adjusting/non adjusing events as per Ind AS 10.

49. Business Combination

a Pursuant to a business transfer agreement dated May 28, 2024, the Company had acquired its entire business of Millenium
Decor with effect from July 1, 2024 as a going concern on slump sale basis, barring certain assets & liabilities, for a cash
consideration of Rs. 1,278.56 lakh. The assets and liabilities have been transferred at their fair values as on July 1, 2024.
As a result, the transaction has been accounted in accordance with "Acquisition Method” laid down by Indian Accounting
Standard 103 (Ind AS 103), notified under the Companies'' Act, 2013.

b Pursuant to a business transfer agreement dated May 2, 2024, the Company had acquired its entire business of Euro Pratik
Laminate LLP with effect from July 7, 2024 as a going concern on slump sale basis, barring certain assets & liabilities, for
a cash consideration of Rs. 484.74 lakh. The Company had 76% ownership of Euro Pratik Laminate LLP through common
controlled by shareholders. The assets and liabilities have been transferred at their book values as on July 7, 2024. As
a result, the transaction has been accounted in accordance with "Pooling of Interest Method” laid down by Appendix
C (Business Combinations of Entities under Common Control) of Indian Accounting Standard 103 (Ind AS 103), notified
under the Companies'' Act, 2013.

50. Additional regulatory information as required by Schedule III to the Companies Act, 2013

50.1 The company have not traded or invested in Crypto currency or Virtual Currency during each reporting year.

50.2 Th ere is no Scheme of Arrangements entered by the Company during each reporting year, approved by the Competent
Authority in terms of sections 230 to 237 of the Companies Act, 2013.

50.3 Relationship with Struck off Companies

There are no transactions with the struck off companies.

50.4 Utilisation of Borrowed funds and share premium

a) In the opinion of the management of the Company and to the best of their knowledge and belief, no funds have
been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of
funds) by the Company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries”), with the
understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend
or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate
Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

b) In the opinion of the management of the Company and to the best of their knowledge and belief, no funds have
been received by the Company from any person(s) or entity(ies), including foreign entities ("Funding Parties”), with
the understanding, whether recorded in writing or otherwise, that the Company shall, directly or indirectly, lend or
invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate
Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

50.5 The company has no such transaction which is not recorded in the books of accounts that 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.

50.6 The Company has not been declared wilful defaulter by any bank or financial institution or government or any
government authority.

50.7 The Company does not have any Loans or advances to promoters, directors, KMPs and related parties , either severally
or jointly with any other person, that are repayable on demand or without specifying any terms or period of repayment.

50.8 The Company does not have any charges or satisfaction which is yet to be registered with Registrar of Companies beyond
the statutory period.

50.9 The company doesn''t have any investments through more than two layers of investment companies as per section 2(87)

(d) and section 186 of Companies Act,2013 during the year ended March 31, 2026 and March 31, 2025.

51. Segmental 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 Managing director of the Company acts as the (CODM). The Company operates only in
one business segment i.e. trading in decorative panel products. Hence, the Company does not have any separate reportable
segments as per Ind AS 108 "Operating Segments”.

52. Exceptional Item

On April 26, 2025, one of the company''s godown located at Building No. M, Swagat Complex, Phase-2, Rahanal Village,
Bhiwandi, Maharashtra, having carrying value of inventories of Rs. 3,359.44 lakh and carrying value of PPE of Rs. 10.78 lakh,
was severely damaged by Fire. This event has been intimated to the Insurance Company and the company has filed a claim
for reimbursement with the Insurance Company. The Company has charged to the statement of profit and loss, net loss
on account of fire and reversal of input tax credit under GST on the loss of Inventory amounting to Rs. 788.79 lakh after
considering claim receivable from insurance company and classified as exceptional item.

53. Impact of New Labour Code

The Government of India has consolidated 29 existing labour legislations into a united framework comprising 4 Labour Codes
which were made effective from November 21, 2025. The Company has considered the impact on the basis of best information
and estimate available and accordingly, financial implications of the same has been charged to Statement of Profit & Loss
Account for the year ended March 31, 2026.

54. Offer For Sale

The co