Notes to Accounts of Varun Mercantile Ltd.

Mar 31, 2024

a) Provisions:

Provisions and liabilities are recognised in the period when it becomes probable that there will be a future outflow of funds resulting from
past operations or events and the amount of cash outflow can be reliably estimated. The timing of recognition and quantification of the
liability require the application of judgment to existing facts and circumstances, which can be subject to change. Since the cash outflows can
take place many years in the future, the carrying amounts of provisions and liabilities are reviewed regularly and adjusted to take account of
changing facts and circumstances.

b) Impairment of financial assets:

The impairment provisions for financial assets are based on assumptions about risk of default and expected cash loss rates. The Company
uses judgment in making these assumptions and selecting the inputs to the impairment calculation, based on Company''s past history, existing
market conditions as well as forward looking estimates at the end of each reporting period.

c) Impairment of non-financial assets:

The Company assesses at each reporting date whether there is an indication that as asset may be impaired. If any indication exists, the
company estimates the asset''s recoverable amount. An asset''s recoverable amount is the higher of an asset''s or cash generating Units (CGU''s)
fair value less costs of disposal and its value in use. It is determined for an individual asset, unless the asset does not generate cash inflows
that are largely independent of those from other assets or a group of assets, where the carrying amount of an asset or CGU exceeds its
recoverable amount, the asset is consideredinpaired and is written down to its recoverable amount.

In assessing value in use, the estimated future cash flows are discounted to their present value using pre-tax discount rate that reflects current
market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs of disposal, recent
market transactions are taken into account, if no such transactions can be identified, an appropriate valuation model is used.

d) Recognition of Deferred Tax Assets and Liabilities :

Deferred tax assets and liabilities are recognised for deductible temporary differences and unused tax losses for which there is probability of
utilisation against the future taxable profit. The Company uses judgement to determine the amount of deferred tax that can be recognised,
based utton the likelv timing and the level of future taxable profit and business development.

Recent pronouncements Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies
D (Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31, 2024, MCA has not notified any new standards or
amendments to the existing standards applicable to the Company.

22 Segment Reporting :

The Company''s operating segment are established on the basis of those components of the company that are evaluted regularly by the Executive Committee
(the ''Chief Operating Decision Maker'' as defined in Ind AS 108 - ''Operating Segments'') in deciding how to allocate resources and in assessing performance.
These have been identified taking into account nature of products and services, the differing risks and returns and the internal business reporting system.

Since the Company is holding investments and that other activities are incidential thereto, in the opinion of the management there are no reporatable segment.
Therefore information relating to segment reporting has not been furnished.

23 The Board has not recommended any dividend

24 Financial Instruments
Valuation

All financial instruments are initially recoznised and subsequently re-measured at fair value as described below :

a) The fair value of investment in Subsidiary'' and associates in measured at cost

b) The fair value of investment in quoted Equity Shares, Bonds, Government Securities, Treasury Bills and Mutual Funds is measured at quoted price or
NAV.

c) The fair value of the remaining financial instruments is determined using discounted cash flow analysis.

25 Finaneinl Risk Management Objectives and Policies

The Company''s financial risk management is an integral part of how to plan and execute its business strategies. The Company''s financial risk management
policy is set by the Management Board.

Market Risk

Market Risk is the risk of loss of future earning, fair values or future cash flow that may result from a change in the price of a financial instrument. The value
of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that
affect market risk sensitive instruments Market Risk is attributable to all market risk sensitive financial instruments including investment and deposits ,
foreign currency receivables, payables and loans and borrowings.

The Company manages market risk through its treasury department, which evaluate and exercises independent control over the entire process of market risk
management The treasury department recommends risk management objectives and policies, which are approved by Senior Management and the Audit
Committee The activities of this department include management of cash resources, implementing hedging strategies for foreign currency exposures,
borrowing strategics, and ensuring compliance with market risk limits and policies.

Interest Rate Risk

Interest rate risk is the risk that fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Since entire
borrowings of the company is interest free, the Company is not exposed to significant interest risk as at the respective reporting dates

Foreign Currency Risk

The Company is not exposed to significant foreign currency risk as at the respective reporting dates.

Liquidity Risk

Liquidity Risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable price The Company’s
treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are
overseen by senior management. Management monitors the Company’s net liquidity through rolling forecasts on the basis of expected cash flows.

Credit Risk

Credit risk arises from the possibility that counter party may not be able to settle their obligation as agreed. To manage this, the Company periodically assesses
the financial reliability of customers, taking in to account the financial condition, current economic trends, and analysis of historical bad debts and ageing of
accounts receivable. Individual risk limit are set accordingly.

The company considers the possibility of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing
basis throughout each reporting period. To assess whether there is a significant increase in credit risk the company compares the risk of a default occurring on
the asset as at the reporting date with the risk of default as at the date of initial recognition.

26 Capital Management

The Company manages its capital to ensure that it will continue as going concern while maximising the return to stakeholders. The company manages its
capital structure and adjustment in light of changes in business condition. The overall strategy remains unchanged as compare to last year.

30 The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in
the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961)

31 The Company is not covered under section 135 of the Companies Act with respect to Corporate Social Responsibility (CSR)

32 The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

As per our report of even date For and on behalf of the Board

For N.J. Karin & Associates
Chartered Accountants

(Registration No 106742W) San jay T. More Ambnlnl T. Jain

Director Director

Dipika G Patel

Partner Yogesh S. Kadam Deepnk A. Karkern

Membership No 146359 Company Secretary Chief Financial Officer

Place: Mumbai
Date : 22-05-2024

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Mar 31, 2014

Rights, Preferences and Restrictions attached to Equity Shares.

The Company''s equity shares have a face value of Rs 10 per share. Each equity shareholder is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation, the equity shareholders are eligible to receive the assets of the Company remaining after distribution of all preferential amounts, in Proportion to their shareholding.

None of the Share holder holds more than 5% shares as at 31st March,2014 and at 31st March 2013.

1 Segment Reporting

Since the company is holding Investments and that other activities are incidental thereto, in the opinion of the management there are no separate reportable segment. Accordingly AS-17 notified under the Companies (Accounting Standards) Rules, 2006 in respect of segment reporting is not applicable to the company.

2 There are no transaction during the year with related parties as per Accounting Standard 18 " Related Party Disclosure" as notified under the Companies (accounting Standards) Rule,2006.

3 The directors have waived their right to receive sitting fees and remuneration.

4 In view of pending scrutiny/appeals, the interest on Income Tax Refund has not been recognized as income.

5 The Income Tax assessment of the Company are completed up to Assessment year 201 l-2012.The total demand raised by the income tax department up to the said assessment year is Rs Nil

6 The Previous year figures have been regrouped/reclassified, wherever necessary to conform to the current year presentation

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Mar 31, 2013

1 Segment Reporting

Since the company is holding Investments and that other activities are incidental thereto, in the opinion of the management there are no separate reportable segment. Accordingly AS-17 notified under the Companies (Accounting Standards) Rules, 2006 in respect of segment reporting is not applicable to the company.

2 There are no transaction during the year with related parties as per Accounting Standard 18 " Related Party Disclosure" as notified under the Companies (accounting Standards) Rule,2006.

3 The directors have waived their right to receive sitting fees and remuneration.

4 In view of Pending scrutiny/appeals, the interest on Income Tax Refund has not been recognized as income.

5 The Income Tax assessment of the Company are completed up to Assessment year 2010-2011 .The total demand raised by the income tax department up to the said assessment year is Rs. Nil

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Mar 31, 2012

1.1.1 Rights, Preferences and Restrictions attached to Equity Shares.

The Company's equity shares have a face value of Rs. 10 per share. Each equity shareholder is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation, the equity shareholders are eligible to receive the assets of the Company remaining after distribution of all preferential amounts, in Proportion to their shareholding.

1.1.2 None of the Share holder holds more than 5% shares as at 31st March, 2012 and at 31st March 2011.

1.1.3 The revised schedule VI notified under the Companies Act 1956 has become applicable to the company during the current year. The previous year figures have been reworked, regrouped, rearranged and reclassified, wherever necessary, to conform to revised schedule VI classification and are to be read in relation to the amounts and other disclosures relating to the current year.

1.2 Segment Reporting

Since the company is holding Investments and that other activities are incidental thereto, in the opinion of the management there are no separate reportable segment. Accordingly AS-17 notified under the Companies (Accounting Standards) Rules, 2006 in respect of segment reporting is not applicable to the company.

1.3 There are no transaction during the year with related parties as per Accounting Standard 18 "Related Party Disclosure" as notified under the Companies (Accounting Standards) Rules, 2006.

1.4 The directors have waived their right to receive sitting fees and remuneration.

1.5 In view of Pending scrutiny/appeals, the interest on Income Tax Refund has not been recognized as income.

1.6 The Income Tax assessment of the Company are completed up to Assessment year 2009-2010. The total demand raised by the income tax department up to the said assessment year is Rs. Nil

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Mar 31, 2010

1. Segment Reporting :

Since the company is holding Investments and that other activities are incidental thereto, in the opinion of the management there are no separate reportable segment. Accordingly AS-17 notified under the Companies (Accounting Standards) Rules, 2006 in respect of segment reporting is not applicable to the company.

2. There are no transaction during the year with related parties as per Accounting Standard-18. notified under the Companies (Accounting Standards) Rules,2006.

3. The Income Tax assessment of the Company are completed up to Assessment year 2007-2008.The total demand raised by the income tax department up to the said assessment year is Rs. Nil

4. In view of Pending scrutiny/appeals, the interest on Income Tax Refund has not been recognized as income.

5. The directors have waived their right to receive sitting fees and remuneration.

6. In the opinion of the Board, the Current Assets and Loans and Advances are approximately of the value stated if realized in the ordinary course of business. The provision of all known liabilities is adequate and neither in excess of nor short of amount reasonably necessary.

7. Figures in bracket represent actual amounts.

8. Previous years figures have been reworked, rearranged and reclassified wherever necessary.

9. As no manufacturing activities were carried out during the year ended on 31st March, 2010 information in respect of manufacturing activities required under para 3 and 4 of part II of Schedule VI of the Companies Act, 1956 is not given.