3. PROVISIONS, CONTINGENT LIABILITIES,
CONTINGENT ASSETS AND COMMITMENTS

a) General

Provisions are recognized when the Company has a
present obligation (legal or constructive) as a result of
a past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle
the obligation and a reliable estimate can be made of the
amount of the obligation. If the effect of the time value
of money is material, the amount of a provision shall be
the present value of expense expected to be required to
settle the obligation Provisions are therefore discounted,
when effect is material, The discount rate shall be pre¬
tax rate that reflects current market assessment of time
value of money and risk specific to the liability. Unwinding
of the discount is recognized in the Statement of Profit
and Loss as a finance cost. Provisions are reviewed at
each balance sheet date and are adjusted to reflect the
current best estimate.

b) Contingencies

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. Information on contingent liability is
disclosed in the Notes to the Financial Statements.

A contingent asset is a possible asset that arises from
past events and whose existence will be confirmed
only by the occurrence or non-occurrence of one
or more uncertain future events not wholly within
the control of the entity, Contingent assets are not
recognized, but are disclosed in the notes. However,
when the realization of income is virtually certain, then
the related asset is no longer a contingent asset, but it
is recognized as an asset.

4. SIGNIFICANT MANAGEMENT JUDGEMENT
IN APPLYING ACCOUNTING POLICIES AND
ESTIMATION UNCERTAINTY

The preparation of the Company's financial
statements requires management to make
judgements, estimates and assumptions that affect
the reported amounts of revenues, expenses, assets
and liabilities, and the accompanying disclosures, and

the disclosure of contingent liabilities at the date of
the financial statements. Estimates and assumptions
are continuously evaluated and are based on
management's experience and other factors, including
expectations of future events that are believed to be
reasonable under the circumstances.

Uncertainty about these assumptions and estimates
could result in outcomes that require a material
adjustment to the carrying amount of assets or liabilities
affected in future periods.

In particular, the Company has identified the following
areas where significant judgements, estimates and
assumptions are required. Further information on
each of these areas and how they impact the various
accounting policies are described below and also in the
relevant notes to the financial statements. Changes in
estimates are accounted for prospectively.

a) Judgements

In the process of applying the company's accounting
policies, management has made the following
judgements, which have the most significant effect on
the amounts recognized in the financial statements:

i) Contingencies

Contingent liabilities may arise from the ordinary course
of business in relation to claims against the company,
including legal, contractor, land access and other
claims. By their nature, contingencies will be resolved
only when one or more uncertain future events occur
or fail to occur. The assessment of the existence, and
potential quantum, of contingencies inherently involves
the exercise of significant judgments and the use of
estimates regarding the outcome of future events.

ii) Recognition of Deferred tax Assets

The extent to which deferred tax assets can be
recognized is based on an assessment of the probability
that future taxable income will be available against
which the deductible temporary differences and tax
loss carry-forward can be utilized. In addition, significant
judgement is required in assessing the impact of any
legal or economic limits or uncertainties in various tax
jurisdictions.

b) Estimates and Assumptions

The key assumptions concerning the future and
other key sources of estimation uncertainty at the
reporting date that have a significant risk of causing
a material adjustment to the carrying amounts of
assets and liabilities within the next financial year,
are described below.

The Company based its assumptions and estimates on
parameters available when the financial statements
were prepared. Existing circumstances and assumptions
about future developments, however, may change due
to market change or circumstances arising beyond the
control of the Company. Such changes are reflected in
the assumptions when they occur.

i) Useful lives of tangible/intangible assets

The Company reviews its estimate of the useful lives of
tangible/intangible assets at each reporting date, based
on the expected utility of the assets.

ii) Defined benefit obligation

The cost of the defined benefit plan and other post¬
employment benefits and the present value of such
obligation are determined using 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, mortality rates and future
pension increases. In view of the complexities involved
in the valuation and its long-term nature, a defined

benefit obligation is highly sensitive to changes in these
assumptions. All assumptions are reviewed at each
reporting date.

iii) Inventories

The Company estimates the net realizable values
of inventories, taking into account the most reliable
evidence available at each reporting date.

iv) Fair Value measurement of Financial
Instruments

When the fair values of financial assets and financial
liabilities recorded in the Balance Sheet cannot be
measured based on quoted prices in active markets
shows at cost.

NOTE 33: TRANSITION TO IND AS 116

As a lessee The Company's lease asset classes primarily consist of leases for land. The Company assesses whether
a contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys
the right to control the use of an identified asset for a period of time in exchange for consideration. To assess
whether a contract conveys the right to control the use of an identified asset, the Company assesses whether: (i) the
contract involves the use of an identified asset (ii) the Company has substantially all of the economic benefits from
use of the asset through the period of the lease and (iii) the Company has the right to direct the use of the asset.
At the date of commencement of the lease, the Company recognizes a right-of-use asset (“ROU”) and a corresponding
lease liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less
(short-term leases) and low value leases.

The following is the summary of practical expedients elected on initial application:

- Applied a single discount rate to a portfolio of leases of similar assets in similar economic environment with a
similar end date;

- Applied the exemption not to recognize right-of-use assets and liabilities for leases with less than 12 months of
lease term on the date of initial application;

- Excluded the initial direct costs from the measurement of the right-of-use asset at the date of initial application.

The aggregate depreciation expense on ROU assets is included under depreciation and amortization expense in the
statement of Profit and Loss.

NOTE 34: PAYABLE TO MSME

Based on the details regarding the status of the supplier obtained by the company, their amount payable to the
supplier covered under the Micro, Small and Medium Enterprises Development Act, 2006 (the Act) has been paid
within 45 days. This has been relied upon by the auditor.

NOTE 35: SEGMENT INFORMATION

The Company is engaged in the business of two segments i.e. 1) Manufacturing of Engineered Quartz Stone Slabs
and 2) manufacturing of Natural Stone Granites Slab and Tiles. Information is reported to and evaluated regularly by
the Coperational Decision Maker (CODM) i.e. Managing Director for the purpose of resource allocation and assessing
performance focuses on the business as whole. The CODM reviews the Company's performance focuses on the
analysis of profit before tax at an overall entity level.

NOTE 36: CORPORATE SOCIAL RESPONSIBILITY

The Corporate Social Responsibility (CSR) obligation for the year as computed by the Company and relied upon by
the auditors is ' 5.51 lakh for the period ended March 31, 2025 (for the year ended March 31, 2024: ' 12.61 lakh).

NOTE 37: EMPLOYEE BENEFITS PLAN

a. General description of the employee Benefit Plan

The company has an obligation towards gratuity, unfunded defined benefit retirement plan covering eligible
employees. The plan provides for lump sum payment to vested employees at retirement, death while in employment
or on termination of the employment of an amount equivalent to 15 days/one month salary, as applicable, payable for
each completed year of service or part thereof in excess of six months in terms of Gratuity scheme of the company or
as per payment of Gratuity Act, whichever is higher. Vesting occurs upon completion of five years of service.

b. Plan typically exposes the company to
actuarial risks such as:

investment risks, interest rate risk, longevity risk and
salary risk

Investment Risk

The present value of the defined benefit plan liability
(denominated in Indian Rupee) is calculated using
a discount risk which is determined by reference to
market yields at the end of the reporting period on
government bonds. Currently, for the plan in India, it
has relatively balanced mix of investments in Insurance
related products.

Interest Rate Risk

A decrease in the bond interest rate will increase the
plan liability; however, this will be partially offset by an
increase in the return on the plan's debt.

Longevity Risk

The present value of the defined benefit plan liability
is calculated by reference to the best estimate of the
mortality of plan participants both during and after their
employment. An increase in the life expectancy of the
plan participants will increase the plan's liability.

Salary Risk

The present value of the defined plan liability is
calculated by reference to the future salaries of plan

participants. As such, an increase in the salary of the
plan participants will increase the plan's liability.

No other post-retirement benefits are provided to
the employees.

In respect of the plan in India, the most recent actuarial
valuation of the plan assets and the present value of
the defined benefit obligation were carried out as at
the end of March 31, 2025 by an actuary. The present
value of the defined benefit obligation were carried out
as at March 31, 2025 by an actuary. The present value of
the defined benefit obligation, and the related current
service cost and the past service cost, were measured
using the projected unit credit method.

Details of defined benefit plan -As per Actuarial
valuation are as follows:

Defined Contribution Plans

The Company has a defined contribution plan in respect
of provident fund. Contributions are made to provident
fund in India for employees at the rate of 12% of basic
salary as per regulations. The contributions are made
to registered provident fund administered by the
Government. The obligation of the group is limited to the
amount contributed and it has no further contractual
nor any constructive obligation.

Level 1:

Quoted prices in the active market. This level of hierarchy
includes financial assets that are measured by reference
to quoted prices in the active market. This category
consists of quoted equity shares and debt based open
ended mutual funds.

Level 2:

Valuation techniques with observable inputs. This level
of hierarchy includes items measured using inputs other
than quoted prices included within Level 1 that are
observable for such items, either directly or indirectly.

This level of hierarchy consists of debt based close
ended mutual fund investments and over the counter
(OTC) derivative contracts.

Level 3:

Valuation techniques with unobservable inputs. This level
of hierarchy includes items measured using inputs that
are not based on observable market data (unobservable
inputs). Fair value determined in whole or in part, using a
valuation model based on assumptions that are neither
supported by prices from observable current market
transactions in the same instruments nor based on

available market data. The main item in this category
are unquoted equity instruments.

The fair value of the financial assets are determined at
the amount that would be received to sell an asset in
an orderly transaction between market participants.
The following methods and assumptions were used to
estimate the fair values:

Investments in debt mutual funds:

Fair value is determined by reference to quotes from
the financial institutions, i.e. Net asset value (NAV)
for investments in mutual funds declared by mutual
fund house.

Quoted equity investments:

Fair value is derived from quoted market prices in active
markets.

Unquoted equity investments:

Fair value is derived on the basis of income approach, in
this approach the discounted cash flow method is used
to capture the present value of the expected future
economic benefits to be derived from the ownership of
these investments.

NOTE 42: FINANCIAL RISK MANAGEMENT

The Company's management monitors and manages
the financial risks relating to the operations of the
Company. These risks include market risk (including
currency risk, interest rate risk and other price risk), credit
risk and liquidity risk.

The management reviews cash resources, implements
strategies for foreign currency exposures and ensuring
market risk limit and policies.

(a) Market risk

Market risk is the risk of any loss in future earnings, in
realizable fair values or in future cash flows that may
result from a change in the price of a financial instrument.
The value of a financial instrument may change as result
of changes in interest rates, foreign currency exchange
rates, equity price fluctuations, liquidity and other market
changes. Future specific market movements can not be
normally predicted with reasonable accuracy.

(i) Foreign currency risk

The Company's functional currency in Indian
Rupees (INR). The Company undertakes transactions
denominated in the foreign currencies; consequently,
exposure to exchange rate fluctuations arise. Volatility
in exchange rates affects the Company's revenue from
export markets and the costs of imports, primarily in
relation to raw material. The Company is exposed to
exchange rate risk under its trade and debt portfolio.

Adverse movements in the exchange rate between the
Rupee and any relevant foreign currency result's in the
increase in the Company's overall debt positions in Rupee
terms without the Company having incurred additional
debt and favorable movements in the exchange rates
will conversely result in reduction in the Company's
receivable in foreign currency.

(b) 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 receivables from customers and
loans given. Credit risk arises from cash held with banks
and financial institutions, as well as credit exposure to
clients, including outstanding accounts receivables. The
maximum exposure to credit risk is equal to the carrying
value of the financial assets. The objective of managing
counterparty credit risk is to prevent losses in financial
assets. The Company assesses the credit quality of

the counterparties, taking into account their financial
position, past experience and other factors.

(c) Liquidity Risk

The Company has a liquidity risk management
framework for managing its short term, medium term
and long term sources of funding vis-a-vis short term
and long term utilization requirement. This is monitored
through a rolling forecast showing the expected net
cash flow, likely availability of cash and cash equivalents,
and available undrawn borrowing facilities.

NOTE 43: CAPITAL MANAGEMENT

(a) Risk management

The Company's capital requirement is mainly to fund its capacity expansion, repayment of principal and interest on
its borrowings and strategic acquisitions. The principal source of funding of the Company has been, and is expected
to continue to be, cash generated from its operations supplemented by funding from bank borrowings. The Company
is not subject to any externally imposed capital requirements.

The Company regularly considers other financing and refinancing opportunities to diversify its debt profile, reduce
interest cost and elongate the maturity of its debt portfolio, and closely monitors its judicious allocation amongst
competing capital expansion projects and strategic acquisitions, to capture market opportunities at minimum risk.

The Company monitors its capital using gearing ratio, which is net debt divided to total equity. Net debt includes,
interest bearing loans and borrowings less cash and cash equivalents, Bank balances other than cash and cash
equivalents.

NOTE 44:

The company has used the borrowings from banks and financial institutions for the specific purpose for which it was

taken at the balance sheet date.

NOTE 45: ADDITIONAL REGULATORY INFORMATION

(i) The title in respect of self-constructed buildings and title deeds of all other immovable properties (other than
properties where the company is the lessee and the lease agreements are duly executed in favour of the lessee),
disclosed in the financial statements included under Property, Plant and Equipment are held in the name of the
Company as at the balance sheet date.

(ii) The company has not revalued its Property, Plant and Equipment (including Right-of-Use Assets), and intangible
assets.

(iii) Capital-Work-in Progress (CWIP)

(iv) No proceedings have been initiated during the year or are pending against the Company as at March 31, 2025
for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (as amended in 2016) and
rules made thereunder.

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

(vi) The company has no transactions with companies struck off under section 248 of the Companies Act, 2013 or
section 560 of Companies Act, 1956.

(vii) The company has registered all the charges and satisfaction thereof with the Registrar of Companies within the
statutory Periods.

For Alok Mittal & Associates For and on behalf of the Board

Firm Registration No. 005717N
Chartered Accountants

For Alok Mittal & Associates Sunil Kumar Arora Sahil Arora

Partner Managing Director Whole Time Director

Membership No. 071205 DIN-00150668 DIN-07970622

UDIN: 25071205BMHGJ02651

Ayush Goel C Srinivasan

Place: Hosur, Tamilnadu Company Secretary CFO

Date: 16.05.2025 M. No. A62697