Notes to Accounts of Gratex Industries Ltd.

Mar 31, 2024

2.15 Provisions and contingent liabilities
Provision

Provisions are recognised when the company has a present legal or constructive obligation as a result of a past
event and it is probable that an outflow of resources embodying economic benefits will be required to settle the
obligation and amount of the obligation can be reliably estimated. Provisions are not recognised for future
operating losses.

Provisions are measured at the management''s best estimate of the expenditure required to settle the present
obligation at the Balance sheet date. If the effect of the time value of money is material, provisions are determined
by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the
time value of money and the risks specific to the liability. Where discounting is used, the increase in the provision
due to the passage of time is recognised as an interest expense.

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 or a reliable estimate of the amount cannot
be made.

Contingent Assets

A contingent asset is disclosed, where an inflow of economic benefits is probable.

2.16 Contributed equity

Equity shares are classified as equity. Incremental costs directly attributable to the issue of new shares or
options are shown in equity as a deduction, net of tax, from the proceeds.

2.17 Earnings per share

Basic earnings per share is calculated by dividing the profit or loss attributable to owners of the Company by the
weighted average number of equity shares outstanding during the financial year. The weighted average
number of equity shares outstanding during the period and for all periods presented is adjusted for events, such
as bonus shares, other than the conversion of potential equity shares that have changed the number of equity
shares outstanding, without a corresponding change in resources.

Diluted earnings per share, adjusts the figures used in the determination of basic earnings per share to take into
account the after income tax effect of interest and other financing costs associated with dilutive potential equity
shares, and the weighted average number of additional equity shares that would have been outstanding
assuming the conversion of all dilutive potential equity shares.

2.18 New standards/ amendments to existing standards.

Ind AS 115 Revenue from Contracts with Customers

The Ministry of Corporate Affairs (MCA) has notified the Companies (Indian Accounting Standards) Amendment
Rules, 2018 on March 28, 2018 notifying Ind AS 115 Revenue from Contracts with Customers

These amendments are in accordance with the recent amendments made by International Accounting Standards
Board (IASB).

Ind AS 115 replaces Ind AS 18 which covers contracts for goods and services and Ind AS 11 which covers
construction contracts. The new standard is based on the principle that revenue is recognised when control of
a good or service transfers to a customer - so the notion of control replaces the existing notion of risks and
rewards.

It establishes a five-step model to account for revenue arising from contracts with customer. Under Ind AS 115,
revenue is recognised at an amount that reflects the consideration to which an entity expects to be entitled in
exchange for transferring goods or services to a customer. The Company is in the process of analysing the
impact of the new standard. This standard will come into force from accounting period commencing on or after
April 01,2018.

There are no other standards, changes in standards and interpretations that are not in force up to reporting
period that the Company expects to have a material impact arising from its application in its financial statements.

2.19 Rounding of amounts

All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakhs as per
the requirement of Schedule III, unless otherwise stated.

2(B) Critical estimates and judgements

The preparation of financial statements requires the use of accounting estimates. Management also needs to
exercise judgement in applying the Company''s accounting policies. This note provides an overview of the areas
that involved a higher degree of judgement or complexity, and of items which are more likely to be materially
adjusted due to estimates and assumptions turning out to be different than those originally assessed. The areas
involving critical estimates or judgements are:

a) Estimation of Provisions & Contingent Liabilities

The Company exercises judgement in measuring and recognising provisions and the exposures to
contingent liabilities which is related to pending litigation or other outstanding claims. If a loss arising from
these litigations and/or claims is probable and can be reasonably estimated, the management record the
amount of the estimated loss. If a loss is reasonably possible, but not probable, the management discloses
the nature of the significant contingency and, if quantifiable, the possible loss that could result from the
resolution of the matter. As additional information becomes available, the management reassess any
potential liability related to these litigations and claims and may need to revise the estimates. Such
revisions or ultimate resolution of these matters could materially impact the results of operations, cash
flows or financial statements of the company. (Refer Note-18 )

b) Estimation of current tax expense and deferred tax

The calculation of the Company''s tax charge necessarily involves a degree of estimation and judgement
in respect of certain items whose tax treatment cannot be finally determined until resolution has been
reached with the relevant tax authority or, as appropriate, through a formal legal process. The final
resolution of some of these items may give rise to material adjustment to taxable profits/losses (Refer
note-11, 15).

Recognition of deferred tax assets/ liabilities

The recognition of deferred tax assets/ liabilities is based upon whether it is more likely than not that
sufficient taxable profits will be available in the future against which the reversal of temporary differences
will be offset. To determine the future taxable profits, the management considers the nature of the
deferred tax assets, recent operating results, future market growth, forecasted earnings and future
taxable income in the jurisdictions in which the company operate. (Refer Note 11A).

c) Useful lives of property, plant and equipment

The Company reviews the estimated useful lives of property, plant and equipment at the end of each
reporting period or even earlier in case, circumstances change such that the recorded value of an asset
may not be recoverable. The estimate of useful life requires significant management judgment and
requires assumptions that can include: planned use of equipments, future volume trends, revenue and
expense growth rates and annual operating plans, and in addition, external factors such as changes in
macroeconomic trends which are developed in connection with the Company''s long-term strategic planning.

d) Employee benefit plans

The Company''s obligation on account of gratuity and compensated absences is determined based on
actuarial valuations. An actuarial valuation involves making various assumptions that may differ from
actual developments in the future. These include the determination of the discount rate, future salary
increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature,
these liabilities are highly sensitive to changes in these assumptions. All assumptions are reviewed at
each reporting date.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate,
the management considers the interest rates of government bonds in currencies consistent with the
currencies of the post-employment benefit obligation. (Refer Note 23A)

2(C) Recent Accounting Pronouncements

Ministry of Corporate Affairs (“MCA”) notifies new standard or amendments to the existing standards under
Companies (Indian Accounting Standards). Rules as issued from time to time. On March 23, 2022, MCA amended
the Companies (Indian Accounting Standards) Amendment Rules, 2022, applicable from April 1,2022, as below:

Ind AS 103 - Reference to Conceptual Framework

The amendments specify that to qualify for recognition as part of applying the acquisition method, the identifiable
assets acquired and liabilities assumed must meet the definitions of assets and liabilities in the Conceptual
Framework for Financial Reporting under Indian Accounting Standards (Conceptual Framework) issued by the
Institute of Chartered Accountants of India at the acquisition date. These changes do not significantly change
the requirements of Ind AS 103. The Company does not expect the amendment to have any significant impact in
its financial statements.

Ind AS 16 - Proceeds before intended use

The amendments mainly prohibit an entity from deducting from the cost of property, plant and equipment amounts
received from selling items produced while the company is preparing the asset for its intended use. Instead, an
entity will recognise such sales proceeds and related cost in profit or loss. The Company does not expect the
amendments to have any impact in its recognition of its property, plant and equipment in its financial statements.

Ind AS 37 - Onerous Contracts - Costs of Fulfilling a Contract

The amendments specify that that the ‘cost of fulfilling'' a contract comprises the ‘costs that relate directly to the
contract''. Costs that relate directly to a contract can either be incremental costs of fulfilling that contract
(examples would be direct labour, materials) or an allocation of other costs that relate directly to fulfilling
contracts. The amendment is essentially a clarification and the Company does not expect the amendment to
have any significant impact in its financial statements.

Ind AS 109 - Annual Improvements to Ind AS (2021)

The amendment clarifies which fees an entity includes when it applies the ‘10 percent'' test of Ind AS 109 in
assessing whether to derecognise a financial liability. The Company does not expect the amendment to have
any significant impact in its financial statements.

Ind AS 116 - Annual Improvements to Ind AS (2021)

The amendments remove the illustration of the reimbursement of leasehold improvements by the lessor in order
to resolve any potential confusion regarding the treatment of lease incentives that might arise because of how
lease incentives were described in that illustration. The Company does not expect the amendment to have any
significant impact in its financial statements.

iv) Risk Exposure

The Gratuity scheme is a final salary Defined Benefit Plan that provides for a lump sum payment made on exit either by
way of retirement, death, disability or voluntary withdrawal. The benefits are defined on the basis of final salary and
the period of service and paid as lump sum at exit. The risks commonly affecting the defined benefit plan are expected
to be:

Demographic Risk: This is the risk of variability of results due to unsystematic nature of decrements that include
mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligation is not
straight forward and depends upon the combination of salary increase, discount rate and vesting criteria. It is
important not to overstate withdrawals because in the financial analysis the retirement benefit of a short career
employee typically costs less per year as compared to a long service employee.

Salary Inflation Risk : Higher than expected increases in salary will increase the defined benefit obligation

Interest-Rate Risk: The defined benefit obligation calculated uses a discount rate based on government bonds. If
bond yields fall, the defined benefit obligation will tend to increase.

This section explains the judgements and estimates made in determining the fair values of the financial instruments
that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values
are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in
determining fair value, the Company has classified its financial instruments into the three levels prescribed
under the accounting standard. An explanation of each level is as follows.

Level 1 : Level 1 hierarchy includes financial instruments measured using quoted prices.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using
valuation techniques which maximise the use of observable market data and rely as little as possible on entity-
specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is
included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is
included in level 3.

The carrying amounts of Investments, deposits with banks and interest there on, trade receivables, cash and
cash equivalents, loans to employees, borrowings, trade payables and other current financial liabilities are
considered to be the same as their fair values due to their short-term nature.

The fair values of security deposits and other advances are based on discounted cash flows. They are
classified as level 3 fair values in the fair value hierarchy due to the use of unobservable inputs, including own
credit risk. Fair value of the security deposit and other advances are considered to be the same as their carring
value.

48 FINANCIAL RISK MANAGEMENT

The Company''s activities expose it to a variety of financial risks: credit risk, liquidity risk and market risk. The Company''s
focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its
financial performance. The market risk to the Company is foreign exchange risk and interest rate. The Company''s
exposure to credit risk is influenced mainly by the individual characteristic of each customer and.

48A CREDIT RISK

Credit risk comprises of direct risk of default, the risk of deterioration of creditworthiness as well as concentration
risks. It mainly arises from trade receivables, cash and cash equivalents (excluding cash on hand) and bank deposits.

(i) Credit risk management

a) Trade receivables

The carrying amount of trade receivables represent the maximum credit exposure net of provision for impairment.
The maximum exposure to credit risk was Rs. 73.85 lakhs as of March 31,2024 ( March 31, 2023 : Rs. 89.89
lakhs).

Trade receivables are derived from revenue earned from customers. Credit risk for trade receivable is managed
by the company through credit approvals, establishing credit limits and periodic monitoring of the creditworthiness
of its customers to which the company grants credit terms in the normal course of business. The Company''s
credit period generally ranges from 90-120 days.

The company has very high concentration of credit risk to a single customer which is a related party.. Single
largest customer have the total exposure in receivables Rs. 73.75 lakhs as of March 31,2024 (March 31,2023
: Rs 89.85 Lakhs).

As per simplified approach, the company uses a provision matrix to compute the expected credit loss allowance
for trade receivables. The provision matrix takes into account a continuing credit evaluation of company''s
customers'' financial condition; aging of trade accounts receivable and the company''s historical loss experience.
The company defines default as an event when there is no reasonable expectation of recovery. The company
has not made any provision for loss allowance in any of the years presented.

Trade receivables are written off when there is no reasonable expectation of recovery.

b) Cash & cash equivalent and bank deposits

Credit risk on cash and cash equivalents and bank deposits is generally low as the said deposits have been
made with banks having good reputation, good past track record and high quality credit rating and company also
reviews their credit-worthiness on an on-going basis.

c) Other financial assets

Credit risk on other financial assets is generrally considered to be low

(i) Foreign currency risk

Foreign exchange risk arises on financial instruments being denominated in a currency that is not the functional
currency of the entity and that are monetary in nature. The Company is exposed to foreign exchange risk mainly
arising from Trade Payables denominated in United States Dollar (‘USD'') and European Union Currency (‘EURO'')
and Trade receivables in United States Dollar (‘USD'').

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due.The
Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities
(comprising the undrawn borrowing facilities below), by continuously monitoring forecast and actual cash flows and
matching the maturity profiles of financial assets and liabilities.

The liquidity risk is managed by means of the ultimate parent company''s Liquidity and Financial Indebtedness Management
Policy, which aims to ensure the availability of sufficient net funds to meet the Company''s financial commitments with
minimal additional cost. One of the main liquidity monitoring measurement instruments is the cash flow projection, using
a minimum projection period of 12 months from the benchmark date.

(i) Financing arrangements

The Company has undrawn borrowing facilities of Nil as at 31st March, 2024 (Rs. Nil as at March 31, 2023 )
which is renewable on yearly basis by mutual consent.

(ii) Maturities of financial liabilities

The following table shows the maturity analysis of the companies financial liabilities based on the contractually
agreed undiscounted cash flows as at the Balance Sheet date.

49 CAPITAL MANAGEMENT

The company''s objectives when managing capital are to safeguard the Company''s ability to continue as a going
concern in order to provide returns for shareholders and to maintain an optimal capital structure to reduce the cost of
capital. In order to maintain or adjust the capital structure of the Company, management can make, or may propose to
the stockholders when their approval is required, adjustments to the amount of dividends paid to stockholders, return
capital to stockholders, issue new shares or sell assets to reduce, for example, debt.

52 Other Comprehensive Income

Under Ind AS, all items of income and expense recognised in a period should be included in statement of profit and loss
for the year, unless a standard requires or permits otherwise. Items of income and expense that are not recognised
in statement of profit and loss but are shown in the statement of profit and loss as ‘other comprehensive income''
includes re-measurements of defined benefit plans. The concept of other comprehensive income did not exist under
previous GAAP.

The notes are an integral part of these financial statements.

53 Figures for the corresponding previous year have been regrouped/rearranged/reclassified, wherever necessary.

For Gratex Industries Limited

Sd/- Sd/-

For Jayesh R Shah & Co Baldevkrishan Sharma Karan Sharma

Chartered Accountants Chairman Managing Director

Firm Registration No. : 104182W DIN: 00117161 DIN:00117188

Sd/- Sd/- Sd/-

Jayesh Shah Neha Arora Mona Menon

Proprietor Company Secretary Chief Fianancial Officer

Membership No.: 033864 Membership No.A57981 DIN: 00117025

Place: Mumbai Place: Mumbai

Date: 30.05.2024 Date: 30.05.2024

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Mar 31, 2015

1 Corporate Information

Gratex Industries Limited is a listed public limited Company domiciled in India, incorporated under the Companies Act, 2013. The Company is a trader, reseller and a whole seller of wall papers and related products.

2. SHARE CAPITAL

2.1 Terms / Right attached to Ordinary Equity Shares:

The company has a single class of equity shares having a par value of Rs. 10/- per share. Each holder of equity share is entitled to one vote per share. The company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of shareholders in the ensuing annual general meeting.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive the remaining assets of the company in proportion to the number of equity shares held by each shareholder, after the settlement of all preferential obligations.

3. RELATED PARTY DISCLOSURES

A. Nature of Relationship :

1. Company's under same management, where control exists:

Marshalls Enterprises India Private Limited (MEIPL)

2. (a) Key Management Personnel (KMP)

Mr. Baldevkrishan Sharma

Mr. Karan Sharma

(b) Relatives of KMP and their enterprises, where transactions have taken place

Mrs. Promila Sharma

Note: Related party relationships are as identified by the company and relied upon by the Auditors.

4. DISCLOSURE OF DERIVATIVES

a. No Derivative Instruments were Outstanding at close of the year.

b. Uncovered risks in foreign currency transactions disclosed as at March, 2014:

5. Debtors, creditors and loans and advance are subjects to confirmation, reconciliations and adjustment and are considered payable / realizable, as the case may be.

6. In the opinion of Board of directors of the company, all items of current and noncurrent Assets, current and non current Liabilities and loans and advance continue to have a realizable value of least the amount at which they are stated in the balance sheets.

7. CONTINGENT LIABILITY (not provided for)

In the opinion of the company it does not have any liabilities, which have not been provided for.

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Mar 31, 2014

1. Corporate Information

Gratex Industries Limited is a listed public limited Company domiciled in India, incorporated under the Companies Act, 1956. The Company is a trader, reseller and a wholeseller of wall papers and related products.

2. Terms / Right attached to Ordinary Equity Shares:

The company has a single class of equity shares having a par value of Rs. 10/- per share. Each holder of equity share is entitled to one vote per share. The company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of shareholders in the ensuing annual general meeting. the event of liquidation of the company, the holders of equity shares will be entitled to receive the remaining assets of the company in proportion to the number of equity shares held by each shareholder, after the settlement of all preferential obligations.

3. RELATED PARTY DISCLOSURES

A. Nature of Relationship :

1. Company''s under same management, where control exists:

Marshalls Enterprises India Private Limited (MEIPL)

2. (a) Key Management Personnel (KMP)

Mr. Baldevkrishan Sharma Mr. Karan Sharma

(b) Relatives of KMP and their enterprises, where transactions have taken place Mrs. Promila Sharma

Note: Related party relationships are as identified by the company and relied upon by the Auditors.

4. DISCLOSURE OF DERIVATIVES

a. No Derivative Instruments were Outstanding at close of the year.

b. Uncovered risks in foreign currency transactions disclosed as at March,2013:

5. Debtors, creditors and loans and advance are subjects to confirmation, reconciliations and adjustment and are considered payable / realizable, as the case may be.

6. In the opinion of Board of directors of the company, all items of current and noncurrent Assets, current and non current Liabilities and loans and advance continue to have a realizable value of least the amount at which they are stated in the balance sheets.

7. CONTINGENT LIABILITY (not provided for)

In the opinion of the company does not have any liabilities, which have not been provided for.

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Mar 31, 2013

1. RELATED PARTY DISCLOSURES

A. Nature of Relationship :

1. Company''s under same management, where control exists: Marshalls Enterprises India Private Limited (MEIPL)

2. (a) Key Management Personnel (KMP)

Mr.BaldevkrishanSharma Mr. Karan Sharma (b) Relatives of KMP and their enterprises, where transactions have taken place Mrs. Promila SharmaF

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Mar 31, 2012

1 Corporate Information

Gratex Industries Limited is a listed public limited Company domiciled in India, incorporated under the Companies Act, 1956. The Company is a trader, reseller and a wholeseller of wall papers and related products.

2.1 Terms / Right attached to Ordinary Equity Shares :

The company has a single class of equity shares having a par value of 7 10/- per share. Each holder of equity share is entitled to one vote per share. The company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of shareholders in the ensuing annual general meeting.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive the remaining assets of the company in proportion to the number of equity shares held by each shareholder, after the settlement of all preferential obligations.

3. CONTINGENT LIABILITY (Not Provided for)

In the opinion of the management, the company does not have any liabilities, which have not been provided for.

4. The financial statements for the year ended March 31, 2011 had been prepared as per the then applicable, pre-revised Schedule VI to the Companies Act, 1956. Consequent to the notification of Revised Schedule VI under the Companies Act, 1956, the financial statements for the year ended March 31,2012 are prepared as per Revised Schedule VI. Accordingly, the previous year figures have also been reclassified to conform to this year's classification. The adoption of Revised Schedule VI for previous year figures does not impact recognition and measurement principles followed for preparation of financial statements.

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Mar 31, 2011

1. CONTINGENT LIABILITIES :

The contingent liabilities on gratuity payment is not indicated.

As at 31.03.2011 As at 31.03.2010

Payment to Directors -

Directors Sitting Fees 124,000 101,000

Remuneration 1,088,783 1,135,651

No Provision for taxation has been made in view of carry forward of losses. - -

Auditors Remuneration - 50,000

Expenditure in foreign currency Euro 437,360 Euro 231,394

USD 116,807 USD 47,161

GBP 5,903 GBP 9,675

2. Information for Goods Manufactured during the year :

Since there is not any manufacture activities running, the Question of Goods manufacture

3. Information of Raw Material Consumption :

Since there is not any manufacture activities running, the Question of Raw Material Consumption

4. Information of Opening Stock, Closing Stock and Sale of Goods manufactured :

Since there is not any manufacture activities running, the Question of Opening Stock, Closing Stock and Sale of Goods manufactured does not arise.

5. Breakup of expenditure incurred on employees in respect of remuneration of not less than Rs.6,00,000/- p.a. is Nil

6. Sundry Debtors/Creditors balances are subject to confirmation.

7. The following items are treated on cash basis in the book of accounts of the company.

1) Income Tax

2) Duty draw back/cash incentive/excise duty

3) Sales tax set off

4) Refund of Sales tax

5) Interest on Sticky Loans (Litigation in the High Court)

6) Property Tax

8. Previous year's figures have been regrouped/recasted wherever necessary to confirm this year's classification.

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Mar 31, 2010

1. CONTINGENT LIABILITIES :

The contingent liabilities on gratuity payment is not indicated.

As at 31.03.2010 As at 31.03.2009



Payment to Directors- Directors Sitting Fees 1,01,000 95,000

Remuneration 11,35,651 10,99,475 No Provision for taxation has been made in view of

carry forward of losses. - -

Auditors Remuneration 50,000 40,000

Expenditure in foreign currency Euro 2,31,394 2,40,759

USD 47,161 31,441

GBP 9,675 7,196



2. Information for Goods Manufactured during the year :

Since there is not any manufacture activities running, the Question of Goods manufacture

3. Information of Raw Material Consumption :

Since there is not any manufacture activities running, the Question of Raw Material Consumption

4. Information of Opening Stock, Closing Stock and Sale of Goods manufactured :

Since there is not any manufacture activities running, the Question of Opening Stock, Closing Stock and Sale of Goods manufactured

5. Breakup of expenditure incurred on employees in respect of remuneration of not less than Rs.6,00,000/- p.a. is Nil

6. Sundry Debtors/Creditors balances are subject to confirmation.

7. The following items are treated on cash basis in the book of accounts of the company.

1) Income Tax

2) Duty draw back/cash incentive/excise duty

3) Sales tax set off

4) Refund of Sales tax

5) Interest on Sticky Loans (Litigation in the High Court)

6) Property Tax

8. Previous years figures have been regrouped/recasted wherever necessary to confirm this years classification.