Note 19 : Provisions (contd.)

(a) Movement in provision for litigation

Provision for litigation represents pending disputes with central goods and services tax authority and sales tax department. Timing of outflow
will depend upon timing of decision of cases. Although the company is contesting the cases at the relevant forum, the management believes
that the outflow of resources embodying economic benefits is probable and has accordingly, created a provision towards the obligation that
may arise. The details are given below:-

g) Trade Receivables and Contract Balances

For Trade Receivables, refer Note No. 12.

Further, the company has no contracts where the period between the transfer of the promised goods or services to the customer and payment terms
by the customer exceeds one year. In light of above;

- it does not adjust any of the transaction prices for the time value of money, and

- there is no unbilled revenue as at March 31, 2025.

(h) Satisfaction of performance obligations

The company's revenue is derived from the single performance obligation to transfer primarily ceramic and vitrified tiles under arrangements in
which the transfer of control of the products and the fulfillment of the company's performance obligation occur at the same time. Revenue from the
sale of goods is recognised when the company has transferred control of the goods to the buyer and the buyer obtains the benefits from the goods, the
potential cash flows and the amount of revenue (the transaction price) can be measured reliably, and it is probable that the company will collect the
consideration to which it is entitled to in exchange for the goods.

Whether the customer has obtained control over the asset depends on when the goods are made available to the carrier or the buyer takes
possession of the goods, depending on the delivery terms. In case of the company's operations, generally the criteria to recognize revenue has been
met when its products are despatched to its customers or to a carrier who will transport the goods to its customers, this is the point in time when the
company has completed its performance obligations. Revenue is measured at the transaction price of the consideration received or receivable, the
amount the company expects to be entitled to.

Variable considerations associated with such sales

Periodically, the company enters into volume or other rebate programs where once a certain volume or other conditions are met, it refunds the
customer some portion of the amounts previously billed or paid. For such arrangements, the company only recognizes revenue for the amounts it
ultimately expects to realise from the customer. The company estimates the variable consideration for these programs using the most likely amount
method or the expected value method, whichever approach best predicts the amount of the consideration based on the terms of the contract and
available information and updates its estimates at each reporting period.

b) Defined Benefit Plans

In accordance with Ind AS 19 "Employee benefits”, an actuarial valuation on the basis of "Projected Unit Credit Method” was carried out, through
which the company is able to determine the present value of obligations. "Projected Unit Credit Method" recognizes each period of service as giving
rise to additional unit of employees benefit entitlement and measures each unit separately to built up the final obligation. This method is used in
following cases:-
i) Gratuity Scheme

The company has defined benefit gratuity plan which is funded. Gratuity is calculated as 15 days salary for every completed year of service or part
thereof in excess of 6 months and is payable on retirement / termination/ resignation. The benefit vests on completing 5 years of service by the
employee. The company makes provision of such gratuity asset/ Liability in the books of accounts on the basis of acturial valuation as per projected
unit credit method; net with annual contribution made by company to insurer to provide gratuity benefits by taking scheme of insurance.

The maturity analysis of lease liabilities is given in Note 43 in the Liquidity risk' section.

Leases: Cash Flows:

Cash flows from operating activities includes cash flow from short term lease & leases of low value for '44.59 lakh (March 31, 2024: ' 46.02 lakh). Cash
flows from financing activities includes the payment of interest and the principal portion of lease liabilities on net basis for ' 264.28 lakh (March 31, 2024:
' 290.57 lakh)

Leases committed and not yet commenced: There are no leases committed which have not yet commenced as on reporting date.

Company as a Lessor

The company has given its building space, lying under property, plant and equipments, on operating lease through operating lease arrangements. Income
from operating leases is recognised as revenue on a straight-line basis over the lease term.

Lease income of ' 1.16 lakh (March 31, 2024: ' 9.00 lakh) has been recognised and included under other income.

Note 36 : Contingent Liabilities (to the extent not provided for) and Commitments

(I) Commitments

Estimated amount of contracts remaining to be executed on capital account (net of advances) and which have not been provided for in the financial
statements, amounts to ' 21.29 lakh (March 31, 2024: ' 1.57 lakh). The company does not have any other long term commitments or material non
-cancellable Contractual Commitments, which may have a material impact on the standalone financial statements.

(II) Contingent Liabilities

The company has reviewed all its pending claims, litigations and other proceedings and has adequately provided for wherever required. The
company does not expect the outcome of these proceedings to have a material or adverse effect on financial position of the company. In certain cases,
it is difficult for the company to estimate the timings of cash outflows, if any, as it is determinable only on receipt of judgement/decisions pending
with various forums/authorities. The company does not expect any reimbursements in respect of the below contingent liabilities.

The company's objective for managing capital is to ensure:

- ability to continue as a going concern, so that the company can continue to provide returns to shareholders and benefits for other stakeholders, and

- maintain optimal capital structure to reduce the cost of capital.

The company manages its capital structure and makes adjustments to it in the light of changes in economic conditions. In order to maintain or adjust the
capital structure, the company may adjust the amount of dividends paid to shareholders, return capital to shareholders or issue new shares.

The company monitors capital structure using Gearing Ratio, which is calculated as under:

Note 39: Segment Information

According to Ind AS 108, identification of operating segments is based on Chief Operating Decision Maker (CODM) approach for making decisions about
allocating resources to the segment and assessing its performance. In Orient Bell Limited, the decision makers view the operating results internal division
wise (Ceramic, Vitrified Polished). Accordingly, such segments may be presented under Ind AS 108. However, these segments have been aggregated
because the core principles, economic characteristics, nature of products, production process, distribution method, regulatory environment and type of
customers in all the divisions are similar. Hence the disclosure requirement of Ind AS 108 of “Segment Reporting" is not considered applicable. Further the
company sells its products mostly within India with insignificant export income and does not have any operation in economic enviroment with different
risk and returns, hence its considered operating in single geographical segment.

Major Customer: No single customers contributed 10% or more to the company's revenue for both March 31, 2025 and March 31, 2024.

b) The members of the company had approved 'Orient Bell Employees Stock Option Scheme 2018' and 'Orient Bell Employees Stock Option Scheme
2021'. The plan envisaged grant of share options to eligible employees at market price as defined in Securities and Exchange Board of India (Share
Based Employee Benefits) Regulations, 2014.Each Employee Stock Option vested in an Employee under the Schemes entitles the holder thereof to
apply for and be allotted one equity share of the company of ' 10 each upon exercise thereof. The Exercise price is ' 10. The exercise period
commences from the date of vesting in respect of options granted under the Scheme and ends upon the expiry of three years from the date of each
vesting.

c) The maximum number of shares allocated for allotment under 2018 Share Schemes and 2021 Share Schemes are 2,00,000 (two lakh) and 5,00,000
(five lakh) equity shares of ' 10 each resepctively. The schemes are monitored and supervised by the Compensation Committee of the Board of
Directors in compliance with the provisions of Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 and
amendments thereof from time to time.

Note42: Fair Values Disclosure
a) Financial Instruments by category

Set out below, is a comparison by class of the carrying amounts and fair value of the company's financial instruments. Here the disclosure is made for
non-current financial assets and non-current financial liabilities, carrying value of current financial assets and current financial liabilities including
trade receivable, cash and cash equivalent, other bank balances, other financial assets, trade payables, current borrowing, other current financial
liabilities etc. which represent the best estimate of fair value.

The management assessed that fair value of these short term financial assets and liabilities significantly approximate their carrying amount largely
due to short term maturities of these instruments and are measured at amortised cost.

b) Fair value hierarchy

This section explains the judgments 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 standalone 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.

Level 1: Quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2: Valuation techniques for which the lowest level input that has a significant effect on the fair value measurement are observable, either
directly or indirectly.

Level 3: Valuation techniques for which the lowest level input which has a significant effect on the fair value measurement is not based on
observable market data.

c) Discount Rate Used in Determining Fair Value

The interest rate used to discount estimated future cash flows, where applicable, are based on the incremental borrowing rate of borrower which in
case of financial liabilities is average market cost of borrowings of the company and in case of financial asset is the average market rate of similar
credit rated instrument. The company maintains policies and procedures to value financial assets or financial liabilities using the best and most
relevant data available.

The company has an established control framework with respect to the measurement of fair values. The finance and accounts
team that has overall responsibility for overseeing all significant fair value measurements. The team regularly reviews significant unobservable
inputs and valuation adjustments. If third party information, such as broker quotes or pricing services, is used to measure fair values, then the team
assesses the evidence obtained from the third parties to support the conclusion that these valuations meet the requirements of Ind AS, including the
level in the fair value hierarchy in which the valuations should be classified. Significant valuation issues are reported to the company's board of
directors.

The following methods and assumptions were used to estimate the fair values:

a) Fair value for security deposits (other than perpetual security deposits) has been presented based on the discounting factor as at the reporting
date. Fair value for all other non-current assets and liabilities is equivalent to the amortised cost, interest rate on them is equivalent to the
market rate of interest.

b) For other financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

Note 43: Financial Risk Management Objectives and Policies

The company's principal financial liabilities comprise trade and other payables and borrowings. The main purpose of these financial liabilities is to
finance the company's operations and to provide guarantees to support its operations.

The company's principal financial assets includes security deposits, trade receivables, cash and cash equivalents, deposits with bank, interest accrued in
deposits, receivables from related and other parties and interest accrued thereon.

The company is exposed to market risk, credit risk and liquidity risk . The company's senior level oversees the management of these risks.

A. Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market
risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk.
i) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market
interest rates. The company’s exposure to the risk of changes in market interest rates relates primarily to the company's debt obligations
with floating interest rates.

B. Credit Risk

Credit risk is the risk that counterparty will default on its contractual obligations resulting in finance loss to the company. Credit risk arise from Cash
and cash equivalents, deposit with banks, trade receivables and other financial assets measure at amortised cost. The company continuously
monitors defaults of customers and other counterparties and incorporate this information into its credit risk control.

The company also uses expected credit loss model to assess the impairement loss in Trade Receivables and makes an allowance of doubtful trade
receivables using this model.

C. Liquidity Risk

Liquidity risk is the risk that the company may not be able to meet its present and future cash and collateral obligations without incurring
unacceptable losses. The company's objective is to, maintain optimum levels of liquidity to meet its cash and collateral requirements. It maintains
adequate sources of financing including loans from banks at an optimised cost.

No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the company
to or in any other person or entity, including foreign entity (“Intermediaries") with the understanding, whether recorded in writing or otherwise, that the
Intermediary shall lend or invest in party identified by or on behalf of the company (Ultimate Beneficiaries).

The company has not received any fund from any party (Funding Party) with the understanding that the company shall whether, directly or indirectly lend
or invest in other persons or entity identified by or on behalf of the company (“Ultimate Beneficiaries") or provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries.

(a) The company did not have any transactions with companies struck off under Section 248 of the Companies Act, 2013 or section 560 of Companies
Act, 1956 neither in the current financial year nor in the previous financial year.

(b) The company does not have any Benami property, where any proceeding under Prohibition of Benami Property Transactions Act, 1988 and rules
made thereunder has been initiated or pending against the company.

(c) The company has not been declared wilful defaulter by any bank or financial Institution or other lender.

(d) The company has not traded or invested in Crypto currency or Virtual Currency.

(e) The company has no 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).

There are no loans or guarantee or securities which are given to the aforementioned subsidiary & associates.

For & on behalf of Board of Directors of Orient Bell Limited

(Madhur Daga) (Sameer Kamboj)

Managing Director Director

DIN 00062149 DIN 01033071

(Aditya Gupta) (Himanshu Jindal)

Chief Executive Officer Chief Financial Officer

(Yogesh Mendiratta)

Place of Signature: New Delhi Company Secretary

Date: May 22, 2025 ICSI Membership No 13615