2.16 Provisions, Contingent Liabilities and Contingent Assets

Provision are measured at the Present value of the management's best estimate (these estimated are reviewed
at each reporting date and adjusted to reflect the current best estimate) of the expenditure required to settle
the present obligation at the end of reporting period. Provisions involving substantial degree of estimation in
measurement are recognized when there is a present obligation as a result of past events and it is probable that
there will be an outflow of resources.

Contingent liabilities are disclosed only 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 which
is 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 the obligation or estimate of the amount cannot
be measured reliably.

Contingent Asset

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.
Commitments are future liabilities for contractual expenditure, classified and disclosed as follows:

a. estimated amount of contracts remaining to be executed on capital account and not provided for;

b. uncalled liability on shares and other investments partly paid;

c. funding related commitment to associate and joint venture companies; and

d. other non-cancellable commitments, if any, to the extent they are considered material and relevant in the
opinion of management. Commitments include the amount of purchase orders (net of advances) issued to
parties for completion of assets.

2.17 Revenue Recognition

Revenue from contracts with customers is recognised when control of goods & services is transferred to the
customer at an amount that reflects the consideration to which the company expects to be entitled in exchange
of transferring promised goods or services having regards to terms of the contract and is recognised to the extent
that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured,
regardless of when the payment is being made. Amount of sales are net of goods and service tax, sale returns , trade
allowances and discounts but inclusive of excise duty.

To determine whether to recognize revenue, the company follows a 5-step process:

1. Identifying the contract with a customer

2. Identifying the performance obligations

3. Determining the transaction price

4. Allocating the transaction price to the performance obligations

5. Recognising revenue when/as performance obligation(s) are satisfied.

The company considers the terms of the contract and its customary business practice to determine the transaction
price.

In all cases, the total transaction price is allocated amongst the various performance obligations based on their
relative standalone selling price. The transaction price excludes amounts collected on behalf of third parties. The
consideration promised include fixed amounts, variable amounts, or both.

Revenue is recognised either at a point in time or over time, when (or as) the company satisfies performance
obligations by transferring the promised goods or services to its customers.

For each performance obligation identified the company determines at contract inception whether it satisfies the
performance obligation over time or satisfies the performance obligation at point in time. If any entity does not
satisfy a performance obligation over time, the performance obligation is satisfied at a point in time.

A receivable is recognised where the company's right to consideration is unconditional (i.e. any passage of time is
required before payment if the consideration is due).

When either party to a contract has performed, an entity shall present the contract in the balance sheet as contract
asset or contract liability, depending on the relationship between the entity's performance and the customer's
payment.

While this represents significant new guidance, the implementation of this new guidance had no impact on the
timing or amount of revenue recognised by the company in any year.

Company continues to account for export benefits on accrual basis.

Other income

All other income is recognized on accrual basis when no significant uncertainty exists on their receipt.

Interest income

Interest income from a financial asset is recognized when it is probable that the economic benefits will flow to the
company and the amount of income can be measured reliably. Interest is accrued on time proportion basis, by
reference to the principle outstanding at the effective interest rate.

Dividends Income from dividend on investments is accrued in the year in which it is declared, whereby the company's
right to receive is established.

2.18 Non-current assets held for sale and discontinued operations

Non-current assets (including disposal groups) classified as held for sale are measured at the lower of their carrying
value and fair value less costs to sell.

Assets and disposal groups are classified as held for sale if their carrying value will be recovered through a sale
transaction rather than through continuing use. This condition is only met when the sale is highly probable and the
asset, or disposal group, is available for immediate sale in its present condition and is marketed for sale at a price
that is reasonable in relation to its current fair value. The Company must also be committed to the sale, which should
be expected to qualify for recognition as a completed sale within one year from the date of classification.

Where a disposal group represents a separate major line of business or geographical area of operations, or is part of
a single co-ordinated plan to dispose of a separate major line of business or geographical area of operations, then
it is treated as a discontinued operation. The post-tax profit or loss of the discontinued operation together with the
gain or loss recognised on its disposal are disclosed as a single amount in the statement of profit and loss, with all
prior periods being presented on this basis.

2.19 Foreign Currency Conversions/Transactions

The Company's Standalone Financial Statements are presented in Indian Rupees( in Rs. Lakhs). Foreign Currency
Transactions are recorded at the exchange rates prevailing on the date of the transactions. Gains and losses arising
out of subsequent fluctuations are accounted for on actual payments or realisations as the case may be. Monetary
assets and liabilities denominated in foreign currency as on Balance Sheet date are translated into functional
currency at the exchange rates prevailing on that date and Exchange differences arising out of such conversion are
recognised in the Statement of Profit and Loss.

2.20 Income Taxes

Tax expense for the year comprises of current and deferred tax. The tax currently payable is based on taxable profit
for the year.

a) Current 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.

b) Deferred Tax

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying value of
assets and liabilities in the financial statements and the corresponding tax bases used in the computation
of taxable profit and is accounted for using the balance sheet liability method. Deferred tax liabilities
are generally recognised for all taxable temporary differences. In contrast, deferred tax assets are only
recognised to the extent that it is probable that future taxable profits will be available against which the
temporary differences can be utilised.

The carrying value of deferred tax assets is reviewed at the end of each reporting period and reduced
to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or
part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply
in the period when the liability is settled or the asset is realised based on the tax rates and tax laws that
have been enacted or substantially enacted by the end of the reporting period. The measurement of
deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which
the Company expects, at the end of the reporting period, to recover or settle the carrying value of its assets
and liabilities. Deferred tax assets and liabilities are offset to the extent that they relate to taxes levied by
the same tax authority and there are legally enforceable rights to set off current tax assets and current tax
liabilities within that jurisdiction.

c) Minimum Alternate Tax (MAT)

Minimum alternate tax (MAT) paid in a year is charged to the statement of profit and loss as current tax for
the year. The deferred tax asset is recognised for MAT credit available only to the extent that it is probable
that the company will pay normal income tax during the specified period, i.e., the period for which MAT credit
is allowed to be carried forward.

In the year in which the company recognizes MAT credit as an asset, it is created by way of credit to the
statement of profit and loss and shown as part of deferred tax asset.

The company reviews the “MAT credit entitlement" asset at each reporting date and writes down the asset
to the extent that it is no longer probable that it will pay normal tax during the specified period.

2.21 Employee Benefits

i) Short Term Employee Benefits

Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the
related service is provided.

A liability is recognized for the amount expected to be paid under performance related pay 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.

ii) Post-Employment benefits

Employee benefit that are payable after the completion of employment are Post-Employment Benefit (other
than termination benefit). Company has identified two types of post employment benefits:

a) Defined contribution plans

Defined contribution plans are those plans in which the company pays fixed contribution into
separate entities and will have no legal or constructive obligation to pay further amounts.

Provident Fund and Employee State Insurance are Defined Contribution Plans in which company
pays a fixed contribution and will have no further obligation beyond the monthly contributions and
are recognised as an expenses in Statement of Profit & Loss.

b) Defined benefit plans

A defined benefit plan is a post-employment benefit plan other than a defined contribution plan.

Company pays Gratuity as per provisions of the Gratuity Act, 1972. 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 return for their service in the current and
prior periods; that benefit to employees is discounted to determine its present value.

The calculation is performed annually by a qualified actuary using the projected unit credit method.
The net interest cost is calculated by applying the discount rate to the net balance of the defined
benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense
in the statement of profit and loss. Any actuarial gains or losses pertaining to components of re¬
measurements of net defined benefit liability/(asset) are recognized in OCI in the period in which
they arise.

2.22 Borrowing Cost

Borrowings costs directly attributable to the acquisition, construction or production of qualifying assets, which are
assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the
cost of those assets, until such time as the assets are substantially ready for the intended use or sale.

Investment income earned on temporary investment of specific borrowings pending their expenditure on qualifying
assets is recognised in the statement of profit and loss.

Discounts or premiums and expenses on the issue of debt securities are amortised over the term of the related
securities and included within borrowing costs. Premiums payable on early redemptions of debt securities, in lieu of
future finance costs, are recognised as borrowing costs.

All other borrowing costs are recognised as expenses in the period in which it is incurred.

2.23 Earning Per Share

Basic Earning Per Share is calculated by dividing the net profit or loss for the period attributable to equity
shareholders by weighted average number of equity shares outstanding during the period. The weighted average
number of equity shares is adjusted for bonus shares, bonus element in the right issue to existing shareholders.
For the purpose of calculating diluted earnings per share, net profit after tax during the year and the weighted
average number of shares outstanding during the year are adjusted for the effect of all dilutive potential equity
shares.

2.24 Leases

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 define period of time in exchange
for consideration. To assess whether a contract conveys the right to control the use of an identified assets, the
Company assesses whether: (i) the contact 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.

(a) The Company as a lessee, The Company recognises a right of use asset and a lease liability at the lease
commencement date. The right of use asset is initially measured at cost, which comprises the initial amount
of the lease liability adjusted for any lease payments made at or before the commencement date, plus any
initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to
restore the underlying asset or the site on which it is located, less any lease incentives received.

The right of use asset is subsequently depreciated using the straight-line method from the commencement
date to the earlier of the end of the useful life of the right of use asset or the end of the lease term. The
estimated useful lives of right of use assets are determined on the same basis as those of property and
equipment. In addition, the right of use asset is periodically reduced by impairment losses, if any, and
adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at the
commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily
determined, the Company's incremental borrowing rate. For leases with reasonably similar characteristics,
the Company, on a lease by lease basis, may adopt either the incremental borrowing rate specific to the lease
or the incremental borrowing rate for the portfolio as a whole.

Lease payments included in the measurement of the lease liability comprise the fixed payments, including
in-substance fixed payments and lease payments in an optional renewal period if the Company is reasonably
certain to exercise an extension option;

The lease liability is measured at amortised cost using the effective interest method

The Company has elected not to recognise right of use assets and lease liabilities for short-term leases
that have a lease term of 12 months or less and leases of low-value assets. The Company recognises the
lease payments associated with these leases as an expense on a straight-line basis over the lease term.
The Company applied a single discount rate to a portfolio of leases of similar assets in similar economic
environment with a similar end date.

(b) The company as lessor-

Leases for which the Company is a lessor are classified as finance or operating leases. Whenever the terms of
the lease transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified
as a finance lease. All other leases are classified as operating leases.

Rental income from operating leases is recognised on a straight-line basis over the term of the relevant
lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying
amount of the leased asset and recognised on a straight-line basis over the lease term.

Amounts due from lessees under finance leases are recognised as receivables at the amount of the
Company's net investment in the leases. Finance lease income is allocated to accounting periods so as to
reflect a constant periodic rate of return on the Company's net investment outstanding in respect of the
leases.

Subsequent to initial recognition, the Company regularly reviews the estimated unguaranteed residual value
and applies the impairment requirements of Ind AS 109, recognising an allowance for expected credit losses
on the lease receivables.

Finance lease income is calculated with reference to the gross carrying amount of the lease receivables,
except for credit impaired financial assets for which interest income is calculated with reference to their
amortised cost (i.e. after a deduction of the loss allowance).

When a contract includes both lease and non-lease components, the Company applies Ind AS 115 to allocate
the consideration under the contract to each component.

2.25 Statement of Cash Flows

Statement of cash flows is prepared in accordance with the Indirect method prescribed in Ind AS-7 'Statement of
cash flows.

2.26 Segment reporting

The operating segments are the segments for which separate financial information is available and for which
operating profit/loss amounts are evaluated regularly by the Managing Director and Chief Executive Officer (who is
the Company's chief operating decision maker) in deciding how to allocate resources and in assessing performance.

The accounting policies adopted for segment reporting are in conformity with the accounting policies of the
Company. Segment revenue, segment expenses, segment assets and segment liabilities have been identified
to segments on the basis of their relationship to the operating activities of the segment. Inter segment revenue
is accounted on the basis of transactions which are primarily determined based on market / fair value factors.
revenue, expenses, assets and liabilities which relate to the Company as a whole and are not allocable to segments
on a reasonable basis have been included under 'unallocated revenue / expenses / assets / liabilities'.

2.27 Dividend

Final dividend on shares is recorded as a liability on the date of approval by the shareholders and interim dividends
are recorded as a liability on the date of declaration by the Company's Board of Directors

During the financial year ended March 31, 2026, the Company recognized income of INR 24,15,868 from the disposal of assets
classified as held for sale, reflecting ongoing asset optimization.

?? Note 13.2:

During the year, the Members of the Company, approved the amendment to the Capital Clause of the Memorandum of Association
by way of a Special Resolution resulting in an increase in the Authorised Share Capital from ?700 Lakhs to ?3500 Lakhs; however,
the filing of Form SH-7 with the Registrar of Companies, is currently in process and, consequently, the increased authorised share
capital is yet to be reflected in the MCA records as at the date of approval of these financial statements.

?? Note 23.1:

During the year, the Company entered into certain speculative transactions which were not directly connected with its principal
business activities. The net financial impact of such transactions for the year is ? 2,55,971, which is not material to the financial
statements. The Board has reviewed the matter and has represented that the transactions were isolated in nature and no further
exposure remains outstanding as at the balance sheet date. The Company is in the process of evaluating appropriate corrective
measures, including strengthening of internal controls and, where considered necessary, appropriate corporate approvals.

During the financial year ended March 31, 2026, the Company recognized income of INR 24,15,868 from the disposal of assets
classified as held for sale, reflecting ongoing asset optimization; further, in FY 2024-25, pursuant to the approval of the resolution
plan by the Hon'ble NCLT, Kolkata Bench under the Insolvency and Bankruptcy Code, 2016, the Company successfully progressed
through the CIRP process, and in line with the approved plan, liabilities amounting to INR 2,33,84,275, not admitted under the
resolution framework, were written back and recognized as income, thereby strengthening the financial position, while, as a
prudent measure, non-recoverable balances of INR 35,16,117 were written off and charged to the Statement of Profit and Loss in
the previous year, collectively reflecting a positive transition towards financial restructuring and improved balance sheet strength.

i) "The Hon'ble National Company Law Tribunal NCLT, Kolkata Bench (""NCLT"") admitted the Corporate Insolvency
Resolution Process (CIRP) application filed by a financial creditor of Carnation Industries Limited (the Company) and
appointed an interim resolution professional (""IRP"") in terms of the Insolvency and Bankruptcy Code, 2016 (the Code"")
to manage the affairs of the Company. Pursuant to this, based on the application made by the Committee of Creditors
of the Company (""COC""), the Hon'ble NCLT appointed Anubrata Gangoly (""RP"") as the Resolution Professional for
conducting Corporate Insolvency Resolution Process. Pursuant to COC's approval of resolution plan dated April 13,
2024 as submitted by the Resolution Applicant, Mr. Vikas Garg , RP has filed an application for the approval of the
resolution plan as submitted by SRA before Hon'ble NCLT. The company has recived the order on 5th day of June
2024 from the Honerable NCLT, Kolkata ,Wherein the successful resolution applicant will get the shares in the manner
prescribed in the resolution plan. Accordingly the company has write back all ther liabilities appearing in the books of
accounts which was not admitted and considered by the honorable NCLT while passing order under section-9 of the
Insolvency and Bankrupcy Code 2016.

The entire existing Shares of the Company was cancelled and new shares were issued as per the approved resolution
plan as per the order of the Kolkata Bench of the Hon'able of NCLT . Total Number of existing shares cancelled 3457160
of Rs 10 each. The Company issued fresh shares in place of the existing shares. Total no of fresh share issued by the
Company are 3457160 of Rs. 10 each. Out of the total numbers of fresh shares issued (3457160) 3110864 number of
shares of Rs 10 each were issued to Shri Vikas Garg, and 346296 number of shares of Rs. 10/- each were issued to
existing shareholders on pro rata basis in place of cancelled shares."

ii) Estimated amount of contracts remaining to be executed on Capital Account is NIL (Previous year NIL).

iii) In terms of the Hon'ble National Company Law tribunal NCLT, Kolkata Bench ("NCLT") Dt: 5th June 2024, the financial
creditor i.e., ICICI Bank Limited (the lender) outstanding were settled. Satisfaction of charge at the Ministry of Corporate
Affairs, Registrar of Companies, West Bengal is yet to be complied with.

iv) Contingent liability :

Refer to note 27(i) above, company has come out of Insolvancy process as per the Hon'ble National Company Law
tribunal NCLT, Kolkata Bench ("NCLT") Dt: 5th June 2024. In the management view there are no contingent liabilites as
on the last date of financial year.

v) Gratuity and Other Post-Employment Benefit Plans:

Refer to note 27(i) above, company has come out of Insolvancy process as per the Hon'ble National Company Law
tribunal NCLT, Kolkata Bench ("NCLT") Dt: 5th June 2024. As on the end of the financial year, the employees have not
completed the requisite period to be entitled for Gratuity and Leave encashment accordingly the Provision for Gratuity
and Other Post-Employment Benefit Plans are not made

vi) In the opinion of the board, all Current Assets and Non-Current Assets have a value on realisation in the ordinary
course of business at least equal to the amount at which they are stated in the accounts.

vii) The assets and liabilities which are expected to be realised and payable in the ordinary course of business not later
than 12 months from the reporting date have been classified as current assets and current liabilities in the Balance
Sheet. All other assets and liabilities have been classified as non-current .

viii) Related party disclosures and transactions: for F.Y 2025-26
Details of related Darties

Note:-

a) Other Financial Assets and Liabilities are stated at amortised cost which is approximately equal to their fair value.

b) Derivative are fair valued using Market observable rates and Published price together with forcast cash flow
information where applicable.

c) There have been no transfers between level 1 and Level 2 for the years ended March 31, 2026

xi) Financial risk management objective and policies

The Company's financial liabilities include Loan and borrowing, and Trade & other payables. The main purpose of these
financial liabilities is to finance the Company's operations. The Company's financial assets include investments, trade &
other receivables, deposits and cash & cash equivalents.

The Company's overall risk management programme focuses on the unpredictability of financial markets and seeks
to minimize potential adverse effects on the Company's financial performance. The Company uses derivative financial
instruments to hedge certain risk exposures. The Company does not acquire or issue derivative financial instruments
for trading or speculative purposes.

The Company's activities expose it to Credit Risk, Liquidity Risk, Market Risk, and Equity Price Rise. The Board of
Directors reviews and agrees policies for managing each of these risks, which are summarised below.

Credit Risk- A risk that counterparty may not meet its obligations under a financial instrument or customer contract, leading
to a financial loss is defined as Credit Risk. The Company is exposed to credit risk from its operating and financial activities.
Customer credit risk is managed by the respective marketing department subject to the Company's established policy,
procedures and control relating to customer credit risk management. The Company reviews the creditworthiness of
these customers on an on-going basis. The Company estimates the expected credit loss on the basis of past data,
experience and policy laid down in this respect. The maximum exposure to the credit risk at the reporting date is the
carrying value of the trade receivables disclosed in Note No. 7 as the Company does not hold any collateral as security.
The Company has a practice to provide for doubtful debts as per its approved policy.

Liquidity Risk-A risk that the Company may not be able to settle or meet its obligations at a reasonable price is
defined as liquidity risks. The Company's finance department is responsible for managing 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 position through rolling forecasts on the basis of expected cash
flows.The Company's objective is to maintain a balance between continuity of funding and flexibility through the use of
cash credits, Term loans among others.

Foreign Currency Risk- A risk that the fair value or future value of the cash flows of a forex exposure will fluctuate
because of changes in foreign exchange rates is defined as Foreign Currency Risk. The Company's exposure to the risk
of changes in foreign exchange rates relates primarily to the Company's export and derivatives operating activities.
The Company, as per its risk management policy, uses foreign exchange and other derivative instruments primarily to
hedge foreign exchange exposure. The management monitors the foreign exchange fluctuations on a continuous basis.
Market Risk- A risk that the fair value of future cash flows of a financial instrument may fluctuate because of changes in
market prices is defined as Marketing Risk. Such changes in the value of financial instruments may result from changes
in the foreign currency exchange rates, interest rates, credit, liquidity and other market changes.

xii) Figures for the previous year are re-classified / re-arranged / re-grouped, wherever necessary, to correspond with the
current year classification / disclosure.

xiii) The Company does not posses any immovable property as at the reporting date. The Immovable property held by the
company was disposed of pursuant to a slum sale transaction completed during the financial year.

xiv) The Company does not have any investment property.

xv) The Company has not Revalued any of its Property, Plant and Equipment

xvi) The Company has not granted any Loans or Advances in the nature of loans to Promoters, Directors, KMPs and related

parties.

xvii) No proceeding has been initiated or pending against the company for holding any benami property under the Benami
Transactions (Prohibition) Act,1988 (45 of 1988) and rules made thereunder.

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

xix) The company has no transactions with companies struck off under section 248 of the Companies Act, 2013 or section

560 of Companies Act, 1956.

xx) Company does not have any Holding, Subsidiary or associate .

xxii) (A) The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any

other sources or kind of funds) to any other person(s) or entity(ies) , including foreign entities(jntermediaries).

(B) 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 (i) 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 (ii) provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries,

xxiii) Undisclosed Income - The Company has not surrendered or disclosed any 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).

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

xxv) The Board of Directors has carefully reviewed the financial position of the Company following the successful completion
of the Corporate Insolvency Resolution Process (CIRP). The Company has emerged from the resolution process with
a restructured financial position and a clear path to profitability.Based on the current financial performance, the
successful implementation of the approved resolution plan, and available liquidity, the Board is confident that the
Company will continue as a going concern for the foreseeable future, including the next 12 months and beyond.
The Company has taken all necessary steps to address its previous financial challenges, and there are no material
uncertainties that would cast significant doubt upon its ability to continue operations.The management is committed
to executing the business plan and delivering long-term value to shareholders, employees, and other stakeholders.
The management is scouting for appropriate business opportunity and once it is available the management would
commence the same. The company is expected to start business during the next year. The status of the Company is
going concern.