Accounting Policies of Gretex Industries Ltd. Company

Mar 31, 2026

2.01 Inventories:

Inventories are valued at the lower of cost and net
realisable value. Cost is computed on a First In
First Out (FIFO) basis. Cost of finished goods and
work-in-progress include all costs of purchases,
conversion costs and other costs incurred in
bringing the inventories to their present location
and condition. The net realisable value is the
estimated selling price in the ordinary course of

business less the estimated costs of completion
and estimated costs necessary to make the sale.

2.02 Cash and cash equivalents:

For the purpose of presentation in the statement
of cash flow statement, cash and cash equivalents
includes cash and cheques in hand, deposits
held at call with financial institutions, other short¬
term, highly liquid investments with original
maturities of three 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
the balance sheet.

2.03 Borrowing Cost

Borrowing cost includes interest, amortization
of ancillary costs incurred in connection with
the arrangement of borrowings and exchange
differences arising from foreign currency
borrowings to the extent they are regarded as an
adjustment to the interest cost. Borrowing costs,
if any, directly attributable to 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, if any. All other borrowing costs are
expensed in the period in which they occur.

2.04 Loans and Borrowings

After initial recognition, interest-bearing loans
and borrowings are subsequently measured at
amortised cost using the EIR method. Gains and
losses are recognised in profit or loss when the
liabilities are derecognised as well as through
the EIR amortisation process. Amortised 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 amortisation
is included as finance costs in the Standalone
Statement of Profit and Loss.

2.05 Trade and other payables

These amounts represent liabilities for goods and
services provided to the company prior to the end
of financial year which are unpaid. The amounts
are unsecured. Trade and other payables are
presented as current liabilities unless payment
is not due within 12 months after the reporting
period. They are recognised initially at their fair
value and subsequently measured at amortised
cost using the effective interest method.

2.06 Financial Instruments:

A financial instrument is any contract that gives
rise to a financial asset of one entity and a financial
liability or equity instrument of another entity.

Point of recognition

Financial assets and liabilities, with the exception
of loans, debt securities, deposits and borrowings
are initially recognised on the trade date, i.e.,
the date that the Company becomes a party to
the contractual provisions of the instrument.
This includes regular way trades: purchases or
sales of financial assets that require delivery
of assets within the time frame generally
established by regulation or convention in the
market place. Loans are recognised when funds
are transferred to the customers'' account. The
Company recognises debt securities, deposits
and borrowings when funds reach the Company.

Initial recognition

The classification of financial instruments at
initial recognition depends on their contractual
terms and the business model for managing
the instruments, as per the principles of the Ind
AS. Financial instruments are initially measured
at their fair value, except in the case of financial
assets and financial liabilities recorded at FVTPL,
transaction costs are added to, or subtracted
from, this amount. Trade receivables are
measured at the transaction price. When the fair
value of financial instruments at initial recognition
differs from the transaction price, the Company
accounts for as mentioned below:

When the transaction price of the instrument
differs from the fair value at origination and the
fair value is based on a valuation technique using
only inputs observable in market transactions,
the Group recognises the difference between the
transaction price and fair value in net gain on fair
value changes. In those cases where fair value is
based on models for which some of the inputs
are not observable, the difference between the
transaction price and the fair value is deferred
and is only recognised in profit or loss when
the inputs become observable, or when the
instrument is derecognised.

Investment in subsidiaries and associates

The Company has elected to account for
its investments in subsidiaries at cost less
impairment loss (if any).

Subsequent measurement of financial
assets

For subsequent measurement, the Company
classifies a financial asset in accordance with the
below criteria:

i. The Company''s business model for
managing the financial asset; and

ii The contractual cash flow characteristics of
the financial asset.

Based on the above criteria, the Company classifies
its financial assets into the following categories:

(a) Financial assets measured at amortized cost

(b) Financial assets measured at fair value
through other comprehensive income
(FVTOCI)

(c) Financial assets measured at fair value
through profit or loss (FVTPL)

(a) Financial assets measured at amortized
cost:

A Financial asset is measured at the amortized
cost if both the following conditions are met:

(i) The Company''s business model
objective for managing the financial
asset is to hold financial assets in order
to collect contractual cash flows; and

(ii) The contractual terms of the Financial
asset give rise on specified dates to
cash Flows that are solely payments of
principal and interest on the principal
amount outstanding.

This category applies to cash and cash
equivalents, other bank balances, trade
receivables, loans and other financial
assets of the Company. Such financial
assets are subsequently measured
at amortized cost using the effective
interest method. Under the effective
interest method, the future cash
receipts are exactly discounted to
the initial recognition value using the
effective interest rate. The cumulative
amortization using the effective interest
method of the difference between
the initial recognition amount and
the maturity amount is added to the
initial recognition value (net of principal
repayments, if any) of the financial asset
over the relevant period of the financial
asset to arrive at the amortized cost at

each reporting date. The corresponding
effect of the amortization under effective
interest method is recognized as interest
income over the relevant period of the
financial asset. The same is included
under other income in the Statement
of Profit and Loss. The amortized cost of
a financial asset is also adjusted for loss
allowance, if any.

(b) Financial assets measured at
FVTOCI:

A financial asset is measured at FVTOCI if
both of the following conditions are met:

(i) The Company''s business model
objective for managing the financial
asset is achieved both by collecting
contractual cash flows and selling
the financial assets; and

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

This category applies to certain
investments in debt and equity
instruments. Such financial assets
are subsequently measured at fair
value at each reporting date. Fair
value changes are recognized in the
Statement of profit and loss under
''Other Comprehensive Income
(OCI)''. However, the Company
recognizes interest income and
impairment losses and its reversals
in the Statement of Profit and
Loss. On de-recognition of such
financial assets, cumulative gain
or loss previously recognized in
OCI is reclassified from equity to
the Statement of Profit and Loss,
except for instruments which the
Company has irrevocably elected to
be classified as equity through OCI
at initial recognition, when such
instruments meet the definition of
Equity under Ind AS 32 Financial
Instruments: Presentation and

they are not held for trading. The
Company has made such election on
an instrument by instrument basis.

Gains and losses on these equity
instruments are never recycled

to profit or loss. Dividends are
recognised in the statement of
profit or loss as dividend income
when the right of the payment
has been established, except
when the Company benefits from
such proceeds as a recovery of
part of the cost of the instrument,
in which case, such gains are
recorded in OCI. Equity instruments
at FVOCI are not subject to an
impairment assessment.

(c) Financial assets measured at
FVTPL:

A financial asset is measured at
FVTPL unless it is measured at
amortized cost or at FVTOCI as
explained above. This is a residual
category applied to all other
investments of the Company
excluding investments in subsidiary
and associate companies. Such
financial assets are subsequently
measured at fair value at each
reporting date. Fair value changes
are recognized in the Statement of
Profit and Loss.

Financial assets or financial liabilities
held for trading:

The Company classifies financial assets as held for
trading when they have been purchased or issued
primarily for short-term profit making through
trading activities or form part of a portfolio of
financial instruments that are managed together,
for which there is evidence of a recent pattern of
short-term profit taking. Held-for-trading assets
and liabilities are recorded and measured in the
balance sheet at fair value. Changes in fair value
are recognised as net gain on fair value changes
in the Statement of Profit and Loss.

Interest and dividend income or expense is
recorded in net gain on fair value changes
according to the terms of the contract, or when
the right to payment has been established.
Included in this classification are debt securities,
equities, and customer loans that have been
acquired principally for the purpose of selling or
repurchasing in the near term.

Subsequent measurement of financial
liabilities

All financial liabilities of the Company are
subsequently measured at amortized cost using
the effective interest method. Under the effective
interest method, the future cash payments are
discounted exactly to the initial recognition value
using the effective interest rate. The cumulative
amortization using the effective interest method
of the difference between the initial recognition
amount and the maturity amount is added to
the initial recognition value (net of principal
repayments, if any) of the financial liability over
the relevant period of the financial liability to arrive
at the amortized cost at each reporting date.
The corresponding effect of the amortization
under effective interest method is recognized
as interest expense over the relevant period of
the financial liability. The same is included under
finance cost in the Statement of Profit and Loss.

Derecognition
(a) Financial asset:

A financial asset (or, where applicable, a
part of a financial asset or part of a group of
similar financial assets) is derecognized (i.e.
removed from the Company''s balance sheet)
when any of the following occurs:

i. The contractual rights to cash flows
from the financial asset expires;

ii. The Company transfers its contractual
rights to receive cash flows of the
financial asset and has substantially
transferred all the risks and rewards
of ownership of the financial asset. A
regular way purchase or sale of financial
assets has been derecognised, as
applicable, using trade date accounting.

iii. The Company retains the contractual
rights to receive cash flows but assumes
a contractual obligation to pay the cash
flows without material delay to one or
more recipients under a ''pass-through''
arrangement (thereby substantially
transferring all the risks and rewards of
ownership of the financial asset);

iv. The Company neither transfers nor
retains substantially all risk and rewards
of ownership and does not retain control
over the financial asset.

In cases where Company has neither
transferred nor retained substantially
all of the risks and rewards of the
Financial asset, but retains control
of the financial asset, the Company
continues to recognize such financial
asset to the extent of its continuing
involvement in the financial asset. In
that case, the Company also recognizes
an associated liability. The financial
asset and the associated liability are
measured on a basis that reflects the
rights and obligations that the Company
has retained.

On de-recognition of a financial asset,
(except as mentioned in ii above for financial
assets measured at FVTOCI), the difference
between the carrying amount and the
consideration received is recognized in the
Statement of Profit and Loss.

Impairment of financial assets (other than at
fair value)

The Company recognises loss allowances
using the Expected Credit Loss (ECL) model for
the financial assets which are not fair valued
through profit and loss. Loss allowance for
trade receivables with no significant financing
component is measured at an amount equal
to lifetime ECL. For all other financial assets,
expected credit losses are measured at an
amount equal to the 12-month ECL, unless there
has been a significant increase in credit risk from
initial recognition, in which case those financial
assets are measured at lifetime ECL. The changes
(incremental or reversal) in loss allowance
computed using ECL model, are recognised as an
impairment gain or loss in the Statement of profit
and loss.

(b) Financial liabilities

A financial liability is derecognised when the
obligation under the liability is discharged,
cancelled or expires. Where 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 a de-recognition
of the original liability and the recognition of
a new liability. The difference between the
carrying value of the original financial liability
and the consideration paid is recognised in
profit or loss.

Impairment of financial assets:

In accordance with Ind AS 109, the Company
applies expected credit loss (''ECL'') model
for measurement and recognition of
impairment loss for financial assets.

ECL is the weighted-average of difference
between all contractual cash flows that are
due to the Company in accordance with
the contract and all the cash flows that the
Company expects to receive, discounted at
the original effective interest rate, with the
respective risks of default occurring as the
weights. When estimating the cash flows,
the Company is required to consider:

- All contractual terms of the financial
assets (including prepayment and
extension) over the expected life of
the assets.

- Cash flows from the sale of collateral
held or other credit enhancements that
are integral to the contractual terms."

2.07 Trade receivables

In respect of trade receivables, the Company
applies the simplified approach of Ind AS 109,
which requires measurement of loss allowance
at an amount equal to lifetime expected credit
losses. Lifetime expected credit losses are the
expected credit losses that result from all possible
default events over the expected life of a financial
instrument."

2.08 Other financial assets:

In respect of its other financial assets, the
Company assesses if the credit risk on those
financial assets has increased significantly
since initial recognition. If the credit risk has not
increased significantly since initial recognition,
the Company measures the loss allowance at
an amount equal to 12-month expected credit
losses, else at an amount equal to the lifetime
expected credit losses."

When making this assessment, the Company
uses the change in the risk of a default occurring
over the expected life of the financial asset. To
make that assessment, the Company compares
the risk of a default occurring on the financial
asset as at the balance sheet date with the risk
of a default occurring on the financial asset as
at the date of initial recognition and considers
reasonable and supportable information, that
is available without undue cost or effort, that is
indicative of significant increases in credit risk
since initial recognition. The Company assumes
that the credit risk on a financial asset has not
increased significantly since initial recognition
if the financial asset is determined to have low
credit risk at the balance sheet date.

Offsetting of financial instruments:

Financial assets and financial liabilities are offset
and the net amount is reported in the balance
sheet if there is a currently enforceable legal right
to offset the recognised amounts and there is an
intention to settle on a net basis, to realise the
assets and settle the liabilities simultaneously.

2.09 Fair value

The Company measures its financial instruments
at fair value in accordance with the accounting
policies mentioned above. Fair value is the
price that would be received on sell of 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 for the asset or
liability."

All assets and liabilities for which fair value is
measured or disclosed in the financial statements
are categorized within the fair value hierarchy
that categorizes into three levels, described as
follows, the inputs to valuation techniques used
to measure value. The fair value hierarchy gives
the highest priority to quoted prices in active
markets for identical assets or liabilities( Level 1
inputs) and the lowest priority to unobservable
inputs (Level 3 inputs).

- Level 1 (unadjusted) - Those where the inputs
used in the valuation are unadjusted quoted
prices from active markets for identical
assets or liabilities that the Company has
access to at the measurement date. The
Company considers markets as active only
if there are sufficient trading activities with
regards to the volume and liquidity of the
identical assets or liabilities and when there
are binding and exercisable price quotes
available on the balance sheet date.

- Level 2 - Those where the inputs that are
used for valuation and are significant, are
derived from directly or indirectly observable
market data available over the entire
period of the instrument''s life. Such inputs
include quoted prices for similar assets or
liabilities in active markets, quoted prices
for identical instruments in inactive markets
and observable inputs other than quoted
prices such as interest rates and yield curves,
implied volatilities, and credit spreads. In
addition, adjustments may be required
for the condition or location of the asset or
the extent to which it relates to items that
are comparable to the valued instrument.
However, if such adjustments are based on
unobservable inputs which are significant to
the entire measurement, the Company will
classify the instruments as Level 3.

- Level 3 - Those that include one or more
unobservable input that is significant to the
measurement as whole.

For assets and liabilities that are recognized
in the financial statements at fair value on
a recurring basis, the Company determines
whether transfers have occurred between
levels in the hierarchy by re-assessing
categorization at the end of each reporting
period and discloses the same."

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Mar 31, 2025

1 SIGNIFICANT ACCOUNTING POLICIES & NOTES :

A Basis Of Preparation of Financial Statements

The financial statements of the Company have been prepared in accordance with Generally Accepted Accounting
Principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material
respects with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies
(Accounts) Rules, 2014.

The financial statements have been prepared on an accrual basis except as otherwise stated.

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle
and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of products and the
time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the company
ascertains its operating cycle for the purpose of current/non-current classification of assets and liabilities.

B Presentation and disclosure of financial statements

During the year ended 31st March 2015,Schedule III notified under the Companies Act 2013 , has become applicable
to the company, for preparation and presentation of its financial statements. The adoption of revised Schedule III does
not impact recognition and measurement principles followed for preparation of financial statements. However, it has
significant impact on presentation and disclosures made in the financial statements. The company has also reclassified
the previous year figures in accordance with the requirements applicable in the current year.

The schedule III allows line items, sub-line items and sub-totals to be presented as an addition or substitution on the
face of the financial statements when such presentation is relevant to an understanding of the company''s financial
position or performance or to cater to industry/sector-specific disclosure requirements.

C Use of Estimates

The preparation of financial statements in conformity with Generally Accepted Accounting Principles require
management to make estimates and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent liabilities at the date of the financial statements and the results of operations during the
reporting period end. Although these estimates are based upon management''s best knowledge of current events and
actions, actual results could differ from these estimates.

D Miscellaneous Expenditure (To The Extent Not Written off or Adjusted)

The amount of preliminary expenses has been written off over a period of 5 years as per the provision of Sec 35 of
Income Tax Act,1961.

E Property, Plant And Equipments & Intangible Assets
(i) Tangible Assets

Property, Plant and Equipment (PPE), being fixed assets are tangible items held for use or for administrative
purposes and are measured at cost less accumulated depreciation and any accumulated impairment. Cost
comprises of the purchase price including import duties and non-refundable purchase taxes after deducting trade
discounts and rebates and any costs attributable to bringing the asset to the location and condition necessary for
it to be capable of operating in the manner intended by the Management. Financing costs relating to acquisition

of assets which take substantial period of time to get ready for intended use are also included to the extent they
relate to the period up to such assets are ready for their intended use.

Gains or losses arising from derecognition of property, plant & equipment are measured as the difference between
the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit and
loss when the asset is derecognized.

the residual values, useful lives and methods of depreciation of property, plant & equipment are reviewed at each
financial year end and adjusted prospectively, if appropriate.

(ii) Intangible Assets

Intangible Assets are recognised only if it is probable that future economic benefits that are attributable to the
asset will flow to the enterprise and the cost of the asset can be measured reliably.

F Depreciation and Amortisation

Depreciation on Property, Plant and Equipments is provided on the straight-line method over the useful life of assets and
in the manner prescribed under schedule-II of the Companies Act, 2013 estimated by the management. Depreciation for
assets purchased/ sold during a period is proportionately charged.

G Inventories

"Inventories consist of traded goods, primarily musical instruments, and are valued at the lower of cost and net realizable
value, in accordance with Accounting Standard (AS) 2 - Valuation of Inventories.

Cost includes purchase price, duties (excluding recoverable taxes), and direct expenses. Net realizable value is the
estimated selling price in the ordinary course of business, less estimated selling costs.

(Refer Note No. 16 of the Financial Statements for details of inventory disclosed under Current Assets in the Balance
Sheet.)

H Cash and cash Equivalents

Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand and short-term
investments with an original maturity of three months or less.

I Provision For Current and Deferred Tax

Tax expense comprises current and deferred tax. Current income-tax is measured at the amount expected to be paid to
the tax authorities in accordance with the Income-tax Act, 1961 enacted in India and tax laws prevailing in the respective
tax jurisdictions where the company operates. The tax rates and tax laws used to compute the amount are those that
are enacted or substantively enacted, at the reporting date.

Deferred income taxes reflect the impact of timing differences between taxable income and accounting income
originating during the current year and reversal of timing differences for the earlier years. Deferred tax is measured
using the tax rates and the tax laws enacted or substantively enacted at the reporting date.

J Investments

Investments, which are readily realizable and intended to be held for not more than one year from the date on which
such investments are made, are classified as Current Investments. All other investments are classified as Long Term
Investments. On initial recognition, all investments are measured at cost. The cost comprises purchase price and
directly attributable acquisition charges such as brokerage, fees and duties. Both current investments and long term
investments are carried in the financial statements at cost. On disposal of an investment, the difference between its
carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.

K Current Assets, Loans & Advances

In the opinion of the Board and to the best of its knowledge and belief the value on realisation of current assets in
the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet and
repayable on demand.

L Recognition of Income & Expenditure

Income and expenditure is recognized and accounted for on accrual basis. Revenue is recognised to the extent that it
is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue
from sale of goods is recognised on transfer of significant risks and rewards of ownership to the customer and when
no significant uncertainty exists regarding realisation of the consideration. Sales are recorded net of sales returns, GST,
cash and trade discounts.

M Related Party Transactions

As per Accounting Standard 18, notified in the companies Rules 2006, the disclosure of Related Party Transaction is as
per Annexure to Note: 1.K

N Title deeds of immovable property not held in the name of the company:

The Company does not have any Immovable Property.

O Revaluation of Property, Plant and Equipment:

The Company has not revalued any of its Property, Plant and Equipment and intangible assets during the year.

Q Benami Property held:

There is no proceeding have been initiated or pending against the company for holding any benami property under the
Benami Transaction ( prohibition ) Act , 1988 (45 of 1988) and the rules made thereunder.

R Working capital limits from Banks/FIs on the basis of security of current assets

The Company has availed overdraft facility as borrowings from the banks or financial institutions on the basis
of current assets.

S Wilful defaulter

The company is not declared wilful defaulter by any bank or financial Institution or other lender.

T Relationship with struck off Companies

The company has no transaction with companies struck off under section 248 of the companies Act 2013 or section
560 of Companies Act 1956.

U Registration of charge or satisfaction with Registrar of Companies

The company has no charge or satisfaction yet to be registered with Registrar of Companies.

V Compliance with number of layers of companies

The company has Subsidiary and provisions prescribed under clause (87) of section 2 of the Act read with Companies
( Restriction on numbers of Layers ) Rules , 2017 are complied.

W Undisclosed Income

The Company has no such transaction not recorded in the books of account that has been surrendered or disclosed as
income during the year in the tax assessment under the Income Tax Act 1961

X Details of Crypto Currency or Virtual Currency

The company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

Y Provision

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation
as a result of past events and it is probable that there will be an outflow of resources.

Z Earning Per Share

The Company reports Basic and Diluted earnings per equity share in accordance with the Accounting Standard - 20
on Earning Per Share. In determining earning per share, the Company considers the net profit after tax and includes
the post tax effect of any extraordinary/exceptional items. The number of shares used in computing basic earning per
share is the weighted average number of equity shares outstanding during the period. The numbers of shares used in
computing diluted earning per share comprises the weighted average number of equity shares that would have been
issued on the conversion of all potential equity shares. Dilutive potential equity shares have been deemed converted as
of the beginning of the period, unless issued at a later date.

ZZ Employee Benefit Expenses :

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.

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

Defined Benefit Plans : The Company pays gratuity to the employees who have completed five years of service with the
Company at the time of resignation/ superannuation. The gratuity is paid @ 15 days basic salary for every completed
year of service as per the Payment of Gratuity Act, 1972, subject to payment ceiling of Rs.20,00,000/-"

The liability in respect of gratuity and other post-employment benefits is calculated using the Projected Unit Credit
Method and spread over the period during which the benefit is expected to be derived from employees'' services.

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Mar 31, 2024

CORPORATE INFORMATION

GRETEX INDUSTRIES LIMITED (" Company ") is Public Limited Company incorporated under Companies Act,1956 named as Heritage Barter Private Limited and consequently the name of the company was changed from M/s Heritage Barter Private Limited to Gretex Industries Private Limited on 7th February, 2013 and again the company was converted from Pvt Ltd Company to closely held Public Limited Co. on 20th November 2013 from M/s Gretex industries Private Limited to Gretex Industries Limited. The equity shares of the company got listed in SME Platform of NSE Ltd. w.e.f 14th October, 2016,vide CIN : L17296WB2009PLC136911. The Company is currently engaged in the business of Trading of musical instruments

_l SIGNIFICANT ACCOUNTING POLICIES & NOTES :

A Basis Of Preparation of Financial Statements

The financial statements of the Company have been prepared in accordance with Generally Accepted Accounting Principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

The financial statements have been prepared on an accrual basis except as otherwise stated.

All assets and liabilities have been classified as current or non-current as per the Company’s normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of products and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the company ascertains its operating cycle for the purpose of current/non-current classification of assets and liabilities.

B Presentation and disclosure of financial statements

During the year ended 31st March 2015,Schedule III notified under the Companies Act 2013 , has become applicable to the company, for preparation and presentation of its financial statements. The adoption of revised Schedule III does not impact recognition and measurement principles followed for preparation of financial statements. However, it has significant impact on presentation and disclosures made in the financial statements. The company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.

The schedule III allows line items, sub-line items and sub-totals to be presented as an addition or substitution on the face of the financial statements when such presentation is relevant to an understanding of the company''s financial position or performance or to cater to industry/sector-specific disclosure requirements.

C Use of Estimates

The preparation of financial statements in conformity with Generally Accepted Accounting Principles require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period end. Although these estimates are based upon management’s best knowledge of current events and actions, actual results could differ from these estimates.

D Miscellaneous Expenditure (To The Extent Not Written off or Adjusted)

The amount of preliminary expenses has been written off over a period of 5 years as per the provision of Sec 35 of Income Tax Act,1961.

D Property, Plant And Equipments & Intangible Assets

(i) Tangible Assets

Property, Plant and Equipment (PPE), being fixed assets are tangible items held for use or for administrative purposes and are measured at cost less accumulated depreciation and any accumulated impairment. Cost comprises of the purchase price including import duties and non-refundable purchase taxes after deducting trade discounts and rebates and any costs attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by the Management. Financing costs relating to acquisition of assets which take substantial period of time to get ready for intended use are also included to the extent they relate to the period up to such assets are ready for their intended use.

Gains or losses arising from derecognition of property, plant & equipment are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when the asset is derecognized. the residual values, useful lives and methods of depreciation of property, plant & equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

(ii) Intangible Assets

Intangible Assets are recognised only if it is probable that future economic benefits that are attributable to the asset will flow to the enterprise and the cost of the asset can be measured reliably.

E Depreciation and Amortisation

Depreciation on Property, Plant and Equipments is provided on the straight-line method over the useful life of assets and in the manner prescribed under schedule-II of the Companies Act, 2013 estimated by the management. Depreciation for assets purchased/ sold during a period is proportionately charged.

F Cash and cash Equivalents

Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand and short-term investments with an original maturity of three months or less.

G Provision For Current and Deferred Tax

Tax expense comprises current and deferred tax. Current income-tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income-tax Act, 1961 enacted in India and tax laws prevailing in the respective tax jurisdictions where the company operates. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.

Deferred income taxes reflect the impact of timing differences between taxable income and accounting income originating during the current year and reversal of timing differences for the earlier years. Deferred tax is measured using the tax rates and the tax laws enacted or substantively enacted at the reporting date.

H Investments

Investments, which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as Current Investments. All other investments are classified as Long Term Investments. On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties. Both current investments and long term investments are carried in the financial statements at cost. On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.

I Current Assets, Loans & Advances

In the opinion of the Board and to the best of its knowledge and belief the value on realisation of current assets in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet and repayable on demand.

j Recognition of Income & Expenditure

Income and expenditure is recognized and accounted for on accrual basis. Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue from sale of goods is recognised on transfer of significant risks and rewards of ownership to the customer and when no significant uncertainty exists regarding realisation of the consideration. Sales are recorded net of sales returns, GST, cash and trade discounts.

K Related Party Transactions

As per Accounting Standard 18, notified in the companies Rules 2006, the disclosure of Related Party Transaction is as per Annexure to Note: 1.K

^L Title deeds of immovable property not held in the name of the company:

The Company does not have any Immovable Property.

M Revaluation of Property, Plant and Equipment:

The Company has not revalued any of its Property, Plant and Equipment (including right-of-use assets) and intangible assets during the year.

N Loans and Advances in the nature of loan repayable on demand or without specifying the terms or period of repayment:

During the year, the company has granted Loans or Advances in the nature of loans to the related parties (as defined under Companies Act, 2013), the said loans were granted without specifying any period or terms of repayment. The details thereof is

			(Amount in Thousand )
	Type of Borrower	Amount of Loan or advance in the nature	Percentage to the total Loans &
		of loan outstanding	Advances in the nature of loans
	Promotor	-	-
	Director	-	-
	KMP	-	-
	Related Parties	-	-

O Benami Property held:

There is no proceeding have been initiated or pending against the company for holding any benami property under the Benami Transaction ( prohibition ) Act , 1988 (45 of 1988) and the rules made thereunder.

P Working capital limits from Banks/FIs on the basis of security of current assets

The Company has no borrowings from the banks or financial institutions on the basis of current assets.

Q Wilful defaulter

The company is not declared wilful defaulter by any bank or financial Institution or other lender.

R Relationship with struck off Companies

The company has no transaction with companies struck off under section 248 of the companies Act 2013 or section 560 of Companies Act 1956.

S Registration of charge or satisfaction with Registrar of Companies

The company has no charge or satisfaction yet to be registered with Registrar of Companies.

T Compliance with number of layers of companies

The company has no Subsidiary therefore provisions prescribed under clause (87) of section 2 of the Act read with Companies ( Restriction on numbers of Layers ) Rules , 2017 not applicable to us.

^U Undisclosed Income

The Company has no such transaction not recorded in the books of account that has been surrendered or disclosed as income during the year in the tax assessment under the Income Tax Act 1961

^V Details of Crypto Currency or Virtual Currency

The company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

W Provision

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources.

X Ratio The ratios for the years ended 31st March, 2024 and 31st March, 2023 are as follows :
Sr. No.	Particulars	Numerator	Denominator	As at		Variance (in %)
				31-03-2024	31-03-2023
a)	Current Ratio	Current Assets	Current Liabilities	2.50	1.20	107.43
b)	Debt-Equity Ratio	Total Debt	Shareholder’s Equity	0.04	0.95	(95.31)
c)	Debt Service Coverage Ratio	Earnings available for Debt Service	Debt Service	13.00	1.14	1,039.40
d)	Return on Equity Ratio (%)	Net Profits after Taxes	Average Shareholder’s Equity	2.37	0.15	1,450.17
e)	Inventory Turnover Ratio	Cost of Goods Sold	Average Value of Inventory	7.06	10.05	(29.82)
f)	Trade Receivables Turnover Ratio	Net Credit Sales	Average Trade Receivable	12.57	20.41	(38.41)
g)	Trade Payables Turnover Ratio	Net Credit Purchase	Average Trade Payables	39.19	84.08	(53.39)
h)	Net Capital Turnover Ratio	Revenue	Working Capital	3.56	20.16	(82.35)
i)	Net Profit Ratio (%)	Net Profit after Tax	Revenue	0.32	0.03	989.71
D	Return on Capital Employed (%)	Earning before Interest and Taxes	Capital Employed	0.57	0.19	206.17
k)	Return on Investment (%)	Income Generated from Investments	Average Investments	0.42	0.14	209.55

	Ration Variance > 25%	Remarks
a)	Current Ratio	Current Ratio increase by 107.43% in the F.Y 2023-24 as compared to F.Y 2022-23 due to increased in current assets during the F.Y 2023-24
b)	Debt-Equity Ratio	Debt Equity Ratio decrease by 95.31% in the F.Y 2023-24 as compared to F.Y 2022-23 due to decreased in Total Debt during the F.Y 2023-24
c)	Debt Service Coverage	Debt Service Coverage Ratio increase by 1,039.40% in the F.Y 2023-24 as compared to F.Y 2022-23
	Ratio	due to increased in Earnings available for Debt Service during the F.Y 2023-24
d)	Return on Equity Ratio (%)	Return on Equity Ratio increase by 1,450.17% in the F.Y 2023-24 as compared to F.Y 2022-23 due to increased in Net Profit After Tax during the F.Y 2023-24
e)	Inventory Turnover Ratio	Inventory Turnover Ratio decrease by 29.82% in the F.Y 2023-24 as compared to F.Y 2022-23 due to increased in Average Value of Inventory during the F.Y 2023-24
f)	Trade Receivables Turnover	Trade Receivable Ratio decrease by 38.41% in the F.Y 2023-24 as compared to F.Y 2022-23 due to
	Ratio	increased in Average Trade Receivable during the F.Y 2023-24
g)	Trade Payables Turnover	Trade Payable Ratio decrease by 53.39% in the F.Y 2023-24 as compared to F.Y 2022-23 due to
	Ratio	increased in Average Trade Payables during the F.Y 2023-24
h)	Net Capital Turnover Ratio	Net Capital Turnover Ratio decrease by 82.35% in the F.Y 2023-24 as compared to F.Y 2022-23 due to increased in Working Capital during the F.Y 2023-24
i)	Net Profit Ratio (%)	Net Profit Ratio increase by 989.71% in the F.Y 2023-24 as compared to F.Y 2022-23 due to increased in Earning before Interest and Taxes during the F.Y 2023-24
D	Return on Capital	Return on Capital Employed increase by 206.17% in the F.Y 2023-24 as compared to F.Y 2022-23 due
	Employed (%)	to increased in Earning before Interest and Taxes during the F.Y 2023-24
k)	Return on Investment (%)	Return on Investment increase by 209.55% in the F.Y 2023-24 as compared to F.Y 2022-23 due to increased in Income Generated from Investments during the F.Y 2023-24

Y Earning Per Share

The Company reports Basic and Diluted earnings per equity share in accordance with the Accounting Standard - 20 on Earning Per Share. In determining earning per share, the Company considers the net profit after tax and includes the post tax effect of any extraordinary/exceptional items. The number of shares used in computing basic earning per share is the weighted average number of equity shares outstanding during the period. The numbers of shares used in computing diluted earning per share comprises the weighted average number of equity shares that would have been issued on the conversion of all potential equity shares. Dilutive potential equity shares have been deemed converted as of the beginning of the period, unless issued at a later date.

^Z Employee Benefit Expenses :

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.

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

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.

The Expenses recognised during the period towards defined contribution plan -

		(Rs. In Thousand)
		For the year	For the year
	Particulars	ended 31.03.2024	ended 31.03.2023
	Employers Contribution to Employee State Insurance	71.78	45.60
	Employers Contribution to Employee Providend Fund	425.36	216.99

Defined Benefit Plans : The Company pays gratuity to the employees who have completed five years of service with the Company at the time of resignation/ superannuation. The gratuity is paid @15 days basic salary for every completed year of service as per the Payment of Gratuity Act, 1972, subject to payment ceiling of Rs.20,00,000/-

The liability in respect of gratuity and other post-employment benefits is calculated using the Projected Unit Credit Method and spread over the period during which the benefit is expected to be derived from employees’ services

Based on the actuarial valuation obtained in this respect, the following table sets out the details of the employee benefit ''obligation as at balance sheet date:-

AA Provision, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources.

Contingent Liabilities are not recognised but are disclosed in the notes. Contingent Assets are neither recognised nor disclosed in the financial statements.

AB Effect of Amalgamation

1. The Regional Director, Eastern Region (ER) vide its order/company petitions no-11/KB/2022 dated 2nd April 2024 has sanctioned the Scheme of Amalgamation of Apsara Selections Limited and Sankhu Merchandise Private Limited (Transferor Company) with Gretex Industries Limited (Transferee Company) pursuant to Section 233 of the Companies Act, 2013.

2. The Transferor Company and the Transferee Company respectively will comply all the applicable provisions of the Companies Act, 2013 for registering the order passed by the Regional Director (ER).

3. As per the Scheme of Amalgamation, all the Assets and Liabilities including Reserves & Surplus of the erstwhile Transferor Company will stand transferred and vested with the Company as on and from the Appointed Date, i.e., 1st April 2023 as the certified copy of order was received on 22nd April 2024.

4. The company has recorded in its books all the Assets and Liabilities including Reserves & Surplus of the erstwhile Transferor Company as on 1st April 2023 the Transfer Date by booking them on one to one basis.

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

6. The accounting for Amalgamation is being done on the basis of Pooling of Interest Method as per and in the manner provided in Accounting Standard AS-14.

7. 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.

8. Upon the Scheme being sanction by the Regional Director (ER) and transfer being taken place as stipulated under different clause here in terms of the Scheme, the transferred 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 31st March 2024, the face value of shares to be issued has been accounted under Share Capital Suspense Account (Refer Notes 3)

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

AC Dues to Micro & Small Enterprises Under the MSMED Act 2006

There are no dues to Micro, Small and Medium Enterprises (MSMEs) as defined in the Micro, Small, Medium Enterprises Development Act, 2006 within the appointed date during the year and no MSMEs to whom the Company owes dues on account of principal amount together with interest at the balance sheet date and hence no additional disclosures have been made.