1.1.K Contingent liabilities

'A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the
occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present
obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the
obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized
because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses its existence
in the financial statements.

1.1.1 Earning Per Share

Basic earnings per share are calculated by dividing the net profit for the period attributable to equity shareholders by the
weighted average number of equity shares outstanding during the period. For the purpose of calculating diluted earnings
per share, the net profit for the period attributable to equity shareholders and the weighted average number of shares
outstanding during the period are adjusted for the effects of all dilutive potential equity shares. In computing dilutive
earnings per share, only potential equity shares that are dilutive and that reduce profit/increase loss per share are included.

1.1. m Cash Flow Statement

'Cash flows are reported using the indirect method, whereby profit/(loss) before extraordinary items and tax is adjusted for
the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The
cash flows from operating, investing and financing activities of the Company are segregated based on the available
information.

1.1. n Financial Instruments

(i) Financial Assets

(ia) Initial recognition and measurement : All financial assets and liabilities are initially recognized at fair value.
Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities, which
are not at fair value through profit or loss, are adjusted to the fair value on initial recognition. Purchase and sale of
financial assets are recognised using trade date accounting

(ib) Subsequent Measurement :

(ib.a) Financial assets carried at amortised cost (AC) : A financial asset is measured at amortised cost if it is held
within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual
terms of the financial asset give rise on specified dates to cash bows that are solely payments of principal and interest on
the principal amount outstanding

(ib.b) Financial assets at fair value through other comprehensive income (FVTOCI) : A financial asset is measured at
FVTOCI if it is held within a business model whose objective is achieved by both collecting contractual cash flows and
selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are
solely payments of principal and interest on the principal amount outstanding.

(ib.c)Financial assets at fair value through profit and loss (FVTPL): A financial asset which is not classified in any of
the above categories are measured at FVTPL.

(ic) Investment In Subsidiaries, Associates And Joint Ventures

The Company Has Accounted For Its Investments In Subsidiaries, Associates And Joint Venture At Cost.

(id) Other Equity Investments

The Company Subsequently Measures All Equity Investments At Fair Value. There Are Two Measurement Categories
Into Which The Company Classifies Its Equity Instruments:

(id.a) Investments In Equity Instruments At FVTPL: Investments In Equity Instruments Are Classified As At Fvtpl,
Unless The Company Irrevocable Elects On Initial Recognition To Present Subsequent Changes In Fair Value In Other
Comprehensive Income For Equity Instruments Which Are Not Held For Trading.

(id.b) Investments In Equity Instruments At FVTOCI: On Initial Recognition, The Company Can Make An
Irrevocable Election (On An Instrument-By-Instrument Basis) To Present The Subsequent Changes In Fair Value In Other
Comprehensive Income. This Election Is Not Permitted If Equity Investment Is Held For Trading. These Elected
Investments Are Initially Measured At Fair Value Plus Transaction Costs. Subsequently, They Are Measured At Fair
Value With Gains And Losses Arising From Changes In Fair Value Recognised In Other Comprehensive Income And
Accumulated In The Reserve For 'Equity Instruments Through Other Comprehensive Income'. The Cumulative Gain Or
Loss Is Not Reclassified To Statement Of Profit And Loss On Disposal Of The Investments.

(ie) Impairment Of Financial Assets

In accordance with IND AS 109, the company uses 'Expected Credit Loss' (ECL) model, for evaluating impairment of
financial assets other than those measured at Fair Value Through Profit and Loss (FVTPL).

Expected credit losses are measured through a loss allowance at an amount equal to:

(ie.a) The 12-months expected credit losses (expected credit losses that result from those default events on the financial
instrument that are possible within 12 months after the reporting date); or

(ie.b) Full lifetime expected credit losses (expected credit losses that result from all possible default events over the life of
the financial instrument)

For trade receivables company applies 'simplified approach' which requires expected lifetime losses to be recognised from
initial recognition of the receivables. the company uses historical default rates to determine impairment loss on the
portfolio of trade receivables. at every reporting date these historical default rates are reviewed and changes in the forward
looking estimates are analysed.

For other assets, the company uses 12 month ECL to provide for impairment loss where there is no significant increase in
credit risk. If there is significant increase in credit risk full lifetime ECL is used.

(if) De-Recognition Of Financial Instruments

The company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or
it transfers the financial asset and the transfer qualifies for de-recognition under IND AS 109. A financial liability (or a
part of a financial liability) is de-recognized from the company's balance sheet when the obligation specified in the
contract is discharged or cancelled or expires.

(ii) Financial Liabilities

(ii.a) Initial Recognition And Measurement

All financial liabilities are recognized at fair value and in case of borrowings, net of directly attributable cost, fee of
recurring nature are directly recognized in the statement of profit and loss as finance cost.

(ii.b) Subsequent Measurement

For trade and other payables maturing within one year from the balance sheet date, the carrying amounts approximate fair
value due to the short maturity of these instruments.

Note :-___

Company's Loan facility declared as non performing long back in 1998. The bank from which company had
taken the loan was gone into liqudation and its banking licensed was cancelled in 2012. The liqudator of
bank has floated the Setttlement scheme of 2013 to offer the OTS facility for all borrowers whose accounts
were become NPA after 1993. As per the Scheme amount payable is Principal Outsatndingon NPA date, plus
interest and cost and charges and adding debits other than accrued interest and Interest from 1.4.10 @6%p.a.
till the date of payment of amount. Accordingly company calulated the amount and paid Rs.624.08 Lakhs.
However liquidator has objected to the amount payable stating that as per scheme for all borrowers appointed
date of NPA is fixed as 31.3.2001 and according to lquidator amount payable comes to Rs.1144.76 Lakhs in
case of company. Company objected to the said amount and filed the petetion in the Court. Court informed
to settle the dispute in the arbitration proceedings. Arbitration award was granted in favor of the company on
3rd September, 2016. Liquidator filed the Commercial Arbitration petition challanging the Arbitration award
in the Bombay High court. on 25th March 2019 order has been passed by the Court setting aside the
Arbitration award. Again company has filed Appeal against the Arbitration petition Order in the Bombay
Highcourt in July 2019. The Bombay highcourt has admitted the appeal on 14th February, 2020. After that
no hearing has happend and matter is subjudice. According to Company and legal adivsor only Rs.155 Lakhs
will be further payable and same is already shown as current financial liability.

__Note 28 : Material Uncertainty related to Going Concern_

The company has incurred losses, leading to the erosion of its net worth. Also allownace for expected credit
loss amounting to Rs.548 Lakhs has been provided for Trade Receivables due to uncertainty regarding their
recoverability and marked down of inventories of non moving traded favrics by 50% of their carrying value
has been done. Despite these financial challenges, the financial statements have been prepared on a going
concern basis as Management is actively working to recover receivables and sustain the business through
strategic measures aimed at improving financial stability and ensuring the company's continued operation. If
measures taken by the management does not materialise as per the exepctation then there exists material
uncertainity about company's ability to continue as going concern

Note 29: Audit Trail - Edit Log

The Company uses Accounting Software (Tally Prime Edit Log) for maintainces of books of accounts which
has a feature of recording audit trail facility and same has operated throughout the year for all the relevant
transactions recorded in the accounting software

The company is also using Turkia software for maintaince of stock records with respect to Manufacturing
activities which does not have feature recording of audit trail_

31 Gravity (India) limited

Summary additional regulatory information required by Schedule III

a) Title Deeds of Immovable Property not held in name of Company

Title Deed of Freehold Property is held in the name of company

b) Disclosure On Revaluation of Assets

The Company has not revalued its property, plant and equipment or intangible assets or both during the current or previous year.

c) Details of benami property held

No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

d) Borrowings against current assets

Presently Company has not borrowed any amount against the Current assets. Previously company had borrowed against the current
assets and loans has turned non performing long back and company has availed the settlement, hence no details with respect to
currents assets are presently required to be furnished

e) Wilful defaulter

The Company have not been declared wilful defaulter by any bank or financial institution or government or any government
authority.

f) Relationship with struck off companies

The Company has no transactions with the companies struck off under Companies Act, 2013 or Companies Act, 1956.

g) Registration of charges or satisfaction with Registrar of Companies

There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond the statutory period.

h) Compliance with number of layers of companies

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

i) Utilisation of borrowed funds and share premium

The Company has not received securities premium through issue of equity and preference shares during the year ended March 31,
2022, and year ended March 31, 2023. There is no understanding with investors, in writing or otherwise, to lend or invest in other
person or entities, directly or indirectly or provide any guarantee, security or the like to or on behalf of the said investors. The
management has absolute discretion on use of such funds. Hence, the additional regulatory disclosure with respect to the utilisation
of borrowed funds and share premium are not included in these financial statements.

j) Compliance with approved scheme of arrangements

The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial
year.

k) Undisclosed income

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income
Tax Act, 1961, that has not been recorded in the books of account.

l) Details of crypto currency or virtual currency

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