Shangar Decor Ltd. ಖಾತೆಯ ಉಪಯುಕ್ತ ಮಾಹಿತಿ

Mar 31, 2025

x) Provisions, Contingent Liabilities and Contingent Assets

A provision is recognised when the Company has a present obligation (legal or constructive)
as a result of past events and it is probable that an outflow of resources embodying economic
benefits will be required to settle the obligation, in respect of which a reliable estimate can be
made of the amount of obligation. Provisions (excluding gratuity and compensated absences)
are determined based on management’s estimate required to settle the obligation at the
Balance Sheet date. In case the time value of money is material, provisions are discounted
using a current pre-tax rate that reflects the risks specific to the liability. When discounting is
used, the increase in the provision due to the passage of time is recognised as a finance cost.
These are reviewed at each Balance Sheet date and adjusted to reflect the current
management estimates.

Contingent liabilities are disclosed in respect of possible obligations that arise from past
events, whose existence would be confirmed by the occurrence or non-occurrence of one or
more uncertain future events not wholly within the control of the Company. A contingent liability
also arises, in rare cases, where a liability cannot be recognised because it cannot be
measured reliably.

xi) Cash Flows

Cash flows are reported using the indirect method, where by net profit before tax is adjusted
for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future
operating cash receipts or payments and item of income or expenses associated with investing
or financing cash flows. The cash flows from operating, investing and financing activities are
segregated.

xi) Leases

The Company evaluates if an arrangement qualifies to be a lease as per the requirements of
Ind AS 116. Identification of a lease requires significant judgement. The Company uses
significant judgement in assessing the lease term (including anticipated renewals) and the
applicable discount rate.

The Company determines the lease term as the non-cancellable period of a lease, together
with both periods covered by an option to extend the lease if the Company is reasonably
certain to exercise that option; and periods covered by an option to terminate the lease if the
Company is reasonably certain not to exercise that option. In assessing whether the Company
is reasonably certain to exercise an option to extend a lease, or not to exercise an option to
terminate a lease, it considers all relevant facts and circumstances that create an economic
incentive for the Company to exercise the option to extend the lease, or not to exercise the
option to terminate the lease. The Company revises the lease term if there is a change in the
non-cancellable period of a lease.

The discount rate is generally based on the incremental borrowing rate specific to the lease
being evaluated or for a portfolio of leases with similar characteristics.

xii) Investments

Investment property is a property held to earn rentals and capital appreciation. Investment
property is measured initially at cost, including transaction costs. Subsequent to initial
recognition, investment property is measured in accordance with Ind AS 16’s requirements for
cost model.

Investment properties are derecognised either when they have been disposed of or when they
are permanently withdrawn from use and no future economic benefit is expected from their
disposal. The difference between the net disposal proceeds and the carrying amount of the
asset is recognised in profit or loss in the period of derecognition.

xiii) Foreign currency transactions

Transactions in foreign currencies are translated into the Company’s functional currency at
the exchange rates at the dates of the transactions.

Monetary assets and liabilities denominated in foreign currencies are translated into the
functional currency at the exchange rate at the reporting date. Non-monetary assets and
liabilities that are measured at fair value in a foreign currency are translated into the functional
currency at the exchange rate when the fair value was determined. Non-monetary items that
are measured based on historical cost in a foreign currency are translated at the exchange
rate at the date of the transaction. Foreign currency differences are generally recognised in
profit or loss.

The gain or loss arising on translation of nonmonetary items measured at fair value is treated
in line with the recognition of the gain or loss on the change in fair value of the item (i.e.,
translation differences on items whose fair value gain or loss is recognised in OCI or profit or
loss are also recognised in OCI or profit or loss, respectively).

xiv) Inventories

Inventories comprising Raw materials, work-in progress, stores and spares, loose tools,
traded goods and finished goods are stated at the lower of cost and net realisable value. Costs
of inventories are determined on a moving average.

Finished goods and work-in-progress include appropriate proportion of manufacturing
overheads at normal capacity and where applicable, duty. Net realisable value represents the
estimated selling price for inventories less all estimated costs of completion and costs
necessary to make the sale.

xv) Employee Benefits

(a) Post-employment benefit plans

Contributions to defined contribution retirement benefit schemes are recognised as expense
when employees have rendered services entitling them to such benefits.

For defined benefit schemes, the cost of providing benefits is determined using the Projected
Unit Credit Method, with actuarial valuations being carried out at each balance sheet date.
Actuarial gains and losses are recognised in full in the statement of profit and loss for the
period in which they occur. Past service cost is recognised immediately to the extent that the
benefits are already vested, or amortised on a straight-line basis over the average period until
the benefits become vested.

The retirement benefit obligation recognised in the balance sheet represents the present value
of the defined benefit obligation as adjusted for unrecognised past service cost, and as
reduced by the fair value of scheme assets. Any asset resulting from this calculation is limited
to the present value of available refunds and reductions in future contributions to the scheme.

b) Other employee benefits

The undiscounted amount of short-term employee benefits expected to be paid in exchange
for the services rendered by employees is recognised during the period when the employee
renders the service. These benefits include compensated absences such as paid annual
leave, overseas social security contributions and performance incentives.

Compensated absences which are not expected to occur within twelve months after the end
of the period in which the employee renders the related services are recognised as an
actuarially determined liability at the present value of the defined benefit obligation at the
balance sheet date.

c) Short term employee benefits

Short-term employee benefits are expensed as the related service is provided. A liability is
recognised for the amount expected to be paid if the Company has a present legal or
constructive obligation to pay this amount as a result of past service provided by the employee
and the obligation can be estimated reliably.

Accumulated compensated absences which are expected to be settled wholly within twelve
months after the end of the period in which the employees render the related service are
treated as short-term benefits. The Company measures the expected cost of such absences
as the additional amount that it expects to pay as a result of the unused entitlement that has
accumulated at the reporting date.

Defined contribution plans

Obligations for contributions to defined contribution plans are expensed as the related service
is provided. The company has following defined contribution plans:

(i) Provident fund

The Company makes specified monthly contributions towards Provident Fund and Employees
State Insurance Corporation (‘ESIC’). The contribution is recognized as an expense in the
Statement of Profit and Loss during the period in which employee renders the related service.

Defined benefit plans

The company’s net obligation in respect of defined benefit plans is calculated separately for
each plan by estimating the amount of future benefit that employees have earned in the current
and prior periods, discounting that amount and deducting the fair value of any plan assets.

The calculation of defined benefit obligations is performed annually by a qualified actuary
using the projected unit credit method. When the calculation results in a potential asset for the
company, the recognised asset is limited to the present value of economic benefits available
in the form of any future refunds from the plan or reductions in future contributions to the plan.
To calculate the present value of economic benefits, consideration is given to any applicable
minimum funding requirements.

Remeasurement of the net defined benefit liability, which comprise actuarial gains and losses,
the return on plan assets (excluding interest) and the effect of the asset ceiling (if any,
excluding interest), are recognised immediately in Other Comprehensive Income. Net interest
expense (income) on the net defined liability (assets) is computed by applying the discount
rate, used to measure the net defined liability (asset), to the net defined liability (asset) at the
start of the financial year after taking into account any changes as a result of contribution and
benefit payments during the year. Net interest expense and other expenses related to defined
benefit plans are recognised in profit or loss.

When the benefits of a plan are changed or when a plan is curtailed, the resulting change in
benefit that relates to past service or the gain or loss on curtailment is recognised immediately
in profit or loss. The company recognises gains and losses on the settlement of a defined
benefit plan when the settlement occurs

The company has following defined benefit plans:

Gratuity

The company provides for its gratuity liability based on actuarial valuation of the gratuity
liability as at the Balance Sheet date, based on Projected Unit Credit Method, carried out by
an independent actuary and contributes to the Gratuity Trust fund formed by the Company.
The contributions made are recognized as plan assets. The defined benefit obligation as
reduced by fair value of plan assets is recognized in the Balance Sheet. Remeasurements are
recognized in the Other Comprehensive Income, net of tax in the year in which they arise.

Other long-term employee benefits

The Company’s net obligation in respect of long-term employee benefits is the amount of
future benefit that employees have earned in return for their service in the current and prior
periods. That benefit is discounted to determine its present value. Re-measurements are
recognised in profit or loss in the period in which they arise.

The company has following long term employment benefit plans:

Leave Encashment

Leave encashment is payable to eligible employees at the time of retirement. The liability for
leave encashment, which is a defined benefit scheme, is provided based on actuarial valuation
as at the Balance Sheet date, based on Projected Unit Credit Method, carried out by an
independent actuary.

Note 32: Property, Plant and Equipment

Property, plant and equipment (including furniture, fixtures, vehicles, etc.) held for use in the
production or supply of goods or services, or for administrative purposes, are stated in the
balance sheet at cost less accumulated depreciation and accumulated impairment losses.
Cost of acquisition is inclusive of freight, duties, taxes and other incidental expenses. When
significant parts of plant and equipment are required to be replaced at intervals, the Company
depreciates them separately based on their specific useful lives. Freehold land is not
depreciated.

Capital work in progress is stated at cost, net of impairment loss, if any. Cost includes items
directly attributable to the construction or acquisition of the item of property, plant and
equipment, and, for qualifying assets, borrowing costs capitalised in accordance with the
Company’s accounting policy. Such properties are classified to the appropriate categories of
property, plant and equipment when completed and ready for intended use. Depreciation of
these assets, on the same basis as-other property assets, commences when the assets are
ready for their intended use.

Depreciation is recognised so as to write off the cost of assets (other than freehold land and
properties under construction) less their residual values over their useful lives, using the
straight-line method. The estimated useful lives, residual values and depreciation method are
reviewed at the end of each reporting period, with the effect of any changes in estimate
accounted for on a prospective basis.

Depreciation is charged on a pro-rata basis at the straight line method over estimated
economic useful lives of its property, plant and equipment generally in accordance with that
provided in the Schedule II to the Act as provided below and except in respect of moulds and
dies which are depreciated over their estimated useful life of 1 to 7 years, wherein, the life of
the said assets has been assessed based on technical advice, taking into account the nature
of the asset, the estimated usage of the asset, the operating conditions of the asset, past
history of replacement, anticipated technological changes, manufacturers warranties and
maintenance support, etc.

An item of property, plant and equipment is derecognised upon disposal or when no future
economic benefits are expected to arise from the continued use of the asset. Any gain or loss
arising on the disposal or retirement of an item of property, plant and equipment is determined
as the difference between the sales proceeds and the carrying amount of the asset and is
recognised in profit or loss. The useful lives for various property, plant and equipment are
given below:

Note 33: Disclosures as required under Section 22 of MSMED Act, 2006

The information regarding Micro Small Enterprises has been determined on the basis of
information available with the Company which is as follows:

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, who is
responsible for allocating resources and assessing performance of the operating segments,
has been identified as the Managing Director of the Company. The Company operates only in
one Business Segment i.e. “Decoration Business”, hence does not have any reportable
Segments as per Ind AS 108 “Operating Segments”.

Note 37 : Financial instruments - Fair values and risk management

The fair value of the financial assets are included at amounts at which the instruments
could be exchanged in a current transaction between willing parties other than in a
forced or liquidation sale.

The following methods and assumptions were used to estimate the fair value

a) Fair value of cash and short-term deposits, trade and other short-term receivables, trade
payables, other current liabilities, approximate their carrying amounts largely due to the short¬
term maturities of these instruments

b) Financial instruments with fixed and variable interest rates are evaluated by the Company
based on parameters such as interest rates and individual credit worthiness of the
counterparty. Based on this evaluation, allowances are taken to account for the expected
losses of these receivables.”

A. Accounting classification and fair values

The carrying value and fair value of financial instruments by categories as at 31st March 2025
& 2024 were as follows:

B. Fair Value Hierarchy

The Company uses the following hierarchy for determining and disclosing the fair value of
financial instruments by valuation technique:

Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2: other techniques for which all inputs which have a significant effect on the recorded
fair value are observable, either directly or indirectly.

Level 3: techniques which use inputs that have a significant effect on the recorded fair value
that are not based on observable market data.

Financial Risk Management

Risk management framework

A wide range of risks may affect the Company’s business and operational / financial
performance. The risks that could have significant influence on the Company are market risk,
credit risk and liquidity risk. The Company’s Board of Directors reviews and sets out policies
for managing these risks and monitors suitable actions taken by management to minimise
potential adverse effects of such risks on the company’s operational and financial
performance.

Market risk

Market Risk is the risk that the fair value or future cash flows of a financial instrument will
fluctuate because of changes in market prices. Market risk comprises three types of risk:
currency risk, interest rate risk and other price risk.

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, cash and cash equivalents and other bank balances.
To manage this, the Company periodically assesses financial reliability of customers, taking
into account the financial condition, current economic trends and analysis of historical bad
debts and ageing of accounts receivable. The maximum exposure to credit risk in case of all
the financial instruments covered below is restricted to their respective carrying amount.

Note 38 : Capital management

For the purpose of the Company’s capital management, capital includes issued equity capital
and all other equity reserves attributable to the equity holders of the Company. The Company
strives to safeguard its ability to continue as a going concern so that they can maximise returns
for the shareholders and benefits for other stake holders. The aim to maintain an optimal
capital structure and minimise cost of capital.

The Company manages its capital structure and makes adjustments in light of changes in
economic conditions and the requirements of the financial covenants. To maintain or adjust
the capital structure, the Company may return capital to shareholders, issue new shares or
adjust the dividend payment to shareholders (if permitted). Consistent with others in the
industry, the Company monitors its capital using the gearing ratio which is total debt divided
by total capital plus total debts.

Note : For the purpose of computing total debt to total equity ratio, total equity includes equity
share capital and other equity and total debt includes long term borrowings, short term
borrowings, long term lease liabilities and short term lease liabilities.

Note 39 : ADDITIONAL REGULATORY INFORMATION REQUIRED BY SCHEDULE III TO
THE COMPANIES ACT, 2013

1. The Company does not have any benami property held in its name. No proceedings have
been initiated on or are pending against the Company for holding benami property under the
Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

2. The Company has complied with the requirement with respect to number of layers as
prescribed under section 2(87) of the Companies Act, 2013 read with the Companies
(Restriction on number of layers) Rules, 2017.

3. Utilisation of borrowed funds and share premium

(i) The Company has not advanced or loaned or invested funds to any other person(s)
or entity(ies), including foreign entities (Intermediaries) with the understanding that the
Intermediary shall:

a. 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

b. Provide any guarantee, security or the like to or on behalf of the ultimate
beneficiaries.

(ii) The Company has not received any fund from any person(s) or entity(ies), including
foreign entities (Funding Party) with the understanding (whether recorded in writing or
otherwise) that the Company shall:

a. 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

b. provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

4. There is no income surrendered or disclosed as income during the year in tax assessments
under the Income Tax Act, 1961 (such as search or survey), that has not been recorded in the
books of account.

5. The Company has not traded or invested in crypto currency or virtual currency during the
year.

6. The Company does not have any charges or satisfaction of charges which is yet to be
registered with Registrar of Companies beyond the statutory period except following charge
created but not satisfied as on date of report:

Previous year’s figures have been regrouped or reclassified, to conform to the current year’s
presentation wherever considered necessary.

For, S K Bhavsar & Co. For & on behalf of the Board of Directors of

Chartered Accountants Shangar Decor Limited

Firm Registration No. 145880W

Shivam Bhavsar Samirbhai Shah Saumil Shah

Proprietor (Managing Director) (Director & CFO)

Membership No. 180566 (DIN: 00787630) (DIN: 01601299)

UDIN: 25180566BM HTTA1052

Shubhangi Chourasia

Company Secretary

Place: Ahmedabad Place: Ahmedabad

Date: May 27, 2025 Date: May 27, 2025

---

Mar 31, 2024

n Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

An onerous contract is a contract under which the unavoidable costs (i.e., the costs that the Company cannot avoid because it has the contract) of meeting the obligations under the contract exceed the economic benefits expected to be received under it. The unavoidable costs under a contract reflect the least net cost of exiting from the contract, which is the lower of the cost of fulfilling it and any compensation or penalties arising from failure to fulfil it. The cost of fulfilling a contract comprises the costs that relate directly to the contract (i.e., both incremental costs and an allocation of costs directly related to contract activities).

o Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and on hand and short-term deposits 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.

p Earnings per share

Basic earnings per share is computed by dividing the profit after tax by the weighted average number of equity shares outstanding during the year.

Diluted earnings per share is computed by dividing the profit after tax as adjusted for dividend, interest and other charges to expense or income 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.

For & on Behalf of For and on behalf of Board of Directors,

S. D. Mehta & Co. Shangar Decor Limited (CIN: L36998GJ1995PLC028139)

Chartered Accountants FRN: 137193W

Shaishav D. Mehta Samir R Shah Saumil S Shah

Partner 32891 Managing Director 00787630 CFO & Executive Director 01601299

UDIN: 24032891BKAFZS6995

Place: Ahmedabad Place: Ahmedabad

Date: 30/05/2024_Date: 30/05/2024

29 Financial Instrument

Financial Risk Management - Objectives and Policies

The key objective of the Company''s financial risk management is to ensure that it maintains a stable capital structure with the focus on total equity to uphold investor, creditor, and customer confidence and to ensure future development of its business. The Company is focused on maintaining a strong equity base to ensure independence, security, as well as financial flexibility for potential future borrowings, if required without impacting the risk profile of the Company.

Company''s principal financial liabilities, comprise Borrowings, trade payables and other payables. The main purpose of these financial liabilities is to finance Company''s operations. Company''s principal financial assets include trade and other receivables and cash & cash equivalents. Company is exposed to interest rate risk, credit risk and liquidity risk.

The Company''s Board oversees the management of these risks. The Company''s Board is supported by senior management team that advises on financial risks and the appropriate financial risk governance framework for the Company. The senior management provides assurance to the Company''s Board that the Company''s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives.

C. Credit Risk

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The Company is exposed to credit risk mainly from its operating activities (primarily trade receivables).

Credit risk on trade receivables is managed by the Company through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. The Company has no concentration of risk as customer base in widely distributed both economically and geographically.

D. Liquidity Risk

Liquidity risk is the risk that the Company may not be able to meet its present and future cash flow obligations without incurring unacceptable losses. Company''s objective is to, at all time maintain optimum levels of liquidity to meet its cash requirements. Company closely monitors its liquidity position and deploys a robust cash management system. It maintains adequate sources of financing including overdraft, debt from banks at optimised cost and cash flow from operations.

E. Capital Management

For the purpose of the Company''s capital management, capital includes issued equity capital and all other equity reserves. The primary objective of the Company''s capital management is to maximise the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. Company monitors capital using a gearing ratio, which is net debts divided by total equity plus net debts. Net debt are non-current and current borrowings as reduced by cash and cash equivalents, other bank balances and current investments. Equity comprises all components including other comprehensive income.

31 Regrouping

The previous year''s figures have been reworked, regrouped, rearranged and reclassified wherever necessary.

For & on Behalf of For and on behalf of Board of Directors,

S. D. Mehta & Co. Shangar Decor Limited (CIN: L36998GJ1995PLC028139)

Chartered Accountants FRN: 137193W

Samir R Shah Saumil S Shah

Shaishav D. Mehta Managing Director 00787630 CFO & Executive Director 01601299

Partner 32891

UDIN: 24032891BKAFZS6995

Place: Ahmedabad Place: Ahmedabad

Date: 30/05/2024 Date: 30/05/2024

---

Mar 31, 2023

(iii) Equity

(a) Share capital and share premium

The authorized share capital of the Company as of March 31, 2023, is Rs. 7,00,00,000/-divided into 1,40,00,000 equity shares of Rs. 5 each and Paid up share capital of the company as of March 31, 2023 is Rs. 6,12,02,000/- divided into 1,22,40,400 equity shares. Par value of the equity shares is recorded as share capital and the amount received in excess of par value is classified as share premium. Every holder of the equity shares, as reflected in the records of the Company as of the date of the shareholder meeting shall have one vote in respect of each share held for all matters submitted to vote in the shareholder meeting.

(b) Retained earnings

Retained earnings comprises of the Company''s undistributed earnings after taxes including earlier years'' carried forward retained earnings.

(iv) Property, plant and equipment

(a) Recognition and measurement

An item of property, plant and equipment is recognised as an asset if it is probable that future economic benefits associated with the item will flow to the Company and its cost can be measured reliably. This recognition principle is applied to costs incurred initially to acquire an item of property, plant and equipment and also to costs incurred subsequently to add to, replace part of, or service it. All other repair and maintenance costs, including regular servicing, are recognised in the statement of profit and loss as incurred. When a replacement occurs, the carrying value of the replaced part is de-recognised. Where an item of property, plant and equipment comprises major components having different useful lives, these components are accounted for as separate items.

Property, plant and equipment is stated at cost or deemed cost applied on transition to Ind AS, less accumulated depreciation and impairment. Cost includes all direct costs and expenditures incurred to bring the asset to its working condition and location for its intended use. Trial run expenses are capitalised. Borrowing costs incurred during the period of construction is capitalised as part of cost of qualifying asset.

The gain or loss arising on disposal of an item of property, plant and equipment is determined as the difference between sale proceeds and carrying value of such item, and is recognised in the statement of profit and loss.

(b) Depreciation

The Company depreciates property, plant and equipment over the estimated useful life on a straight-line basis from the date the assets are available for use. Assets acquired under finance lease and leasehold improvements are amortized over the shorter of estimated useful life of the asset or the related lease term. Term licenses are amortized over their respective contract term. Freehold land is not depreciated. The estimated useful life of

assets are reviewed and where appropriate are adjusted, annually. The estimated useful lives of assets are as follows:

Category	Useful life
Buildings	28 to 40 years
Plant and machinery	5 to 21 years
Computer equipment and software	2 to 7 years
Furniture, fixtures and equipment	3 to 10 years
Vehicles	4 to 5 years

When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment. Subsequent expenditure relating to property, plant and equipment is capitalized only when it is probable that future economic benefits associated with these will flow to the Company and the cost of the item can be measured reliably. The cost of property, plant and equipment not available for use as at each reporting date is disclosed under capital work- inprogress.

(v) Impairment

(A) Financial assets

The Company applies the expected credit loss model for recognizing trade receivables and other financial assets. Expected credit loss is the difference between the contractual cash flows and the cash flows that the entity expects to receive discounted using effective interest rate.

Loss allowances for trade receivables and lease receivables are measured 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 Lifetime expected credit loss is computed based on a provision matrix which takes in to the account historical credit loss experience adjusted for forward looking information.

(B) Property Plant and Equipment

At each balance sheet date, the Company reviews the carrying value of its property, plant and equipment and intangible assets to determine whether there is any indication that the carrying value of those assets may not be recoverable through continuing use. If any such indication exists, the recoverable amount of the asset is reviewed in order to determine the extent of impairment loss, if any. Where the asset does not generate cash flows that are independent from other assets, the Company estimates the recoverable amount of the cash generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. An impairment loss is recognised in the statement of profit and loss as and when the carrying value of an asset exceeds its recoverable amount.

Where an impairment loss subsequently reverses, the carrying value of the asset (or cash generating unit) is increased to the revised estimate of its recoverable amount so that the increased carrying value does not exceed the carrying value that would have

been determined had no impairment loss been recognised for the asset (or cash generating unit) in prior years. A reversal of an impairment loss is recognised in the statement of profit and loss immediately.

(vi) Provisions

Provisions are recognised in the balance sheet when the company has a present obligation (legal or constructive) as a result of a past event, which is expected to result in an outflow of resources embodying economic benefits which can be reliably estimated. Each provision is based on the best estimate of the expenditure required to settle the present obligation at the balance sheet date. Where the time value of money is material, provisions are measured on a discounted basis.

Constructive obligation is an obligation that derives from an entity''s actions where:

(a) by an established pattern of past practice, published policies or a sufficiently specific current statement, the entity has indicated to other parties that it will accept certain responsibilities and;

(b) as a result, the entity has created a valid expectation on the part of those other parties that it will discharge such responsibilities.

(vii) Revenue

The Company derives revenue primarily from activities being mandap keeping, decoration contracts and turnkey projects in decoration segment.

(a) Sales Income

Revenue from products are recognized when the significant risks and rewards of ownership have been transferred to the buyer, continuing managerial involvement usually associated with ownership and effective control have ceased, the amount of revenue can be measured reliably, it is probable that economic benefits associated with the transaction will flow to the Company and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

(b) Interest income

In absence of certainty of cash inflows of such interests, the company has not adopted amortized income model to record such income. The same has been recorded on accrual basis at simple interest rate method.

(c) Others

• Revenues are shown net of Goods and Service Tax and applicable discounts and allowances.

• The company has made investment in certain equity funds which are held for investment for a period longer than 12 months. During the year company has earned dividend income out of such investments and the same has been considered under the head Other Income.

(viii) Income tax

Tax expense for the year comprises of current and deferred tax. The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the statement of profit and loss because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The

Company''s liability for current tax is calculated using tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period.

Current is recognised as an expense or income in the statement of profit and loss, except when they relate to items credited or debited either in other comprehensive income or directly in equity, in which case the tax is also recognised in other comprehensive income or directly in equity.

Income tax expense in the Statement of Profit and Loss is as follows:			(In Lakhs)
	Particulars	For the year ended March
		2023	2022
	Current Tax	7.15	3.18
	Tax of Earlier Years	0.42	-

(ix) Earnings per share

Basic earnings per share is computed by dividing profit or loss for the year attributable to equity holders by the weighted average number of shares outstanding during the year. Partly paid-up shares are included as fully paid equivalents according to the fraction paid-up.

Diluted earnings per share is computed using the weighted average number of shares and dilutive potential shares except where the result would be anti-dilutive.

(x) Inventories

Inventories are stated at the lower of cost and net realisable value. Cost is ascertained on a weighted average basis. Costs comprise direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. Net realisable value is the price at which the inventories can be realised in the normal course of business after allowing for the cost of conversion from their existing state to a finished condition and for the cost of marketing, selling and distribution.

Provisions are made to cover slow-moving and obsolete items based on historical experience of utilisation on a product category basis, which involves individual businesses considering their product lines and market conditions.

3. Notes on Transition to Ind AS

These financial statements are prepared in accordance with Ind AS. For years up to and including the year ended March 31, 2017, the Company prepared its financial statements in accordance with Indian GAAP (i.e. Previous GAAP).

Accordingly, the Company has prepared financial statements which comply with Ind AS for periods ending on March 31, 2023, together with the comparative period data as at and for the year ended March 31, 2022.

The Company has only one class of equity shares having par value of Rs.5/- per share. Each equity shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors, if any, 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, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts, if any, in proportion to their shareholding.