3.7 Provision, Contingent Liability and Contingent Assets

Provision is recognised in respect of present obligation requiring settlement by outflow of resources
and of which reliable estimate of the amount of obligation could be made.

Contingent liability is not recognised and is disclosed unless the possibility of outflow of resources
embodying economic benefit is remote. Present obligation arising from past events and the

existence of which is subject to occurrence or non-occurrence of an in certain future event is
disclosed.

3.8 Cash Flow statement

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the
effects of transactions of non-cash nature, any deferrals or accruals of past or future operating cash
receipts or payments and item of income or expenses associated with investing or financing cash
flows. The cash flows are segregated into operating, investing and financing activities.

3.9 Borrowing Cost

Interest and other cost in connection with borrowing of funds to the extent related / attributed to
the acquisition /construction of qualifying fixed assets are capitalized up to the date when such
assets are ready for its intended use. Other borrowing costs are charged to Profit and Loss Account.

3.10 Earnings Per Share

Basic Earnings per share is calculated by dividing the Net profit or loss after tax attributable to equity
shareholders by the weighted average number of equity shares outstanding during the year. Diluted
EPS is determined by adjusting the Profit or loss attributable to equity shareholders and the
weighted average number of equity shares outstanding for the effects of all dilutive potential equity
shares.

3.11 Income Tax

The tax provision is considered as stipulated in IND AS 12 and includes current and deferred tax
liability. The company recognizes the accumulated deferred tax asset based on accumulated time
difference using current tax rate. Both the current tax and deferred tax liability relating to items
recognized outside the profit or loss is recognized either in "Other Comprehensive Income" or
directly in "Equity" as the case may be.

3.12 Segment Reporting

The Company's Operating segment is identified based on nature of activity, risks and returns. The
Company is primarily engaged in Trading of all kinds of tradeable and marketable goods - Operating
Segment.

3.13 Impairment of Non-financial Assets

(i) The carrying values of non-financial assets are reviewed for impairment at each Balance Sheet
date, if there is any indication of impairment based on internal and external factors.

(ii) Non-financial assets are treated as impaired when the carrying amount of such asset exceeds its
recoverable value. After recognition of impairment loss, the depreciation / amortization for the said
assets is provided for remaining useful life based on the revised carrying amount, less its residual
value if any, on straight line basis.

(iii) An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is
identified as impaired.

(iv) An impairment loss is reversed when there is an indication that the impairment loss may no
longer exist or may have decreased.

3.14 Financial Instruments

A financial instrument is a contract that gives rise to a financial asset of one entity and a financial
liability or equity instrument of another entity. Financial assets and financial liabilities are recognized
when the Company becomes a party to the contractual provisions of the relevant instrument and
are initially measured at fair value. Transaction costs that are directly attributable to the acquisition
or issue of financial assets and financial liabilities (other than financial assets and financial liabilities
at fair value through profit or loss) are added to or deducted from the fair value of the financial
assets or financial liabilities at fair value through profit or loss are recognized immediately in profit
or loss.

3.15 Financial Assets

(i) Financial assets comprise of investments in Equity, Trade Receivables, Cash and Cash Equivalents
and Other Financial Assets.

(ii) Depending on the business model (i.e) nature of transactions for managing those financial assets
and its contractual cash flow characteristics, the financial assets are initially measured at fair value
and subsequently measured and classified at:

a) Amortized cost; or

b) Fair value through Other Comprehensive Income (FVTOCI); or

c) Fair value through Profit or Loss (FVTPL)

d) Amortized cost represents carrying amount on initial recognition at fair value plus or minus
transaction cost.

(iii) The Company classifies its financial assets for measurement as below:-

a. Trade receivables, Loan and advances given to employees and related parties, deposits and
other advances recoverable in cash or kind - Amortized Cost

b. Investment in Equity instruments - FVTOCI

(iv) The company derecognises a financial asset when the contractual rights to the cash flows from
the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of
ownership of the asset to another party. On derecognition of a financial asset or part thereof, the
difference between the carrying amount measured at the date of recognition and the consideration
received including any new asset obtained less any new liability assumed shall be recognized in the
statement of profit and Loss.

(v) The company assesses at each balance sheet date whether the financial asset or group of
financial assets is impaired. IND AS 109 requires expected credit losses to be measured through a
loss allowance. The company recognizes lifetime expected losses for trade receivables that do not
constitute a financing transaction. For all other financial assets, expected credit losses are measured
at an amount equal to 12 month expected credit losses or at an amount equal to lifetime expected
losses, if the credit risk on the financial asset has increased significantly since initial recognition.

3.16 Financial Liability

(i) Financial liabilities comprise of Borrowings from Banks, Trade payables, Derivative financial
instruments, financial guarantee obligation and other financial liabilities.

(ii) The Financial Liabilities comprising Borrowings, trade payables, interest accrued, Unclaimed/
Disputed dividends, security deposits and other financial liabilities not for trading are measured at
Amortized Costs

(iii) Financial liabilities are derecognised when and only when it is extinguished (i.e) when the
obligation specified in the contract is discharged or cancelled or expired.

(iv) Upon de-recognition of its financial liabilities or part thereof, the difference between the
carrying amount of a financial liability that has been extinguished or transferred to another party
and the consideration paid including any non-cash assets transferred or liabilities assumed is
recognized in the Statement of Profit and Loss.

3.17 Fair Value Measurement

(i) Fair value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date.

(ii) The fair value of an asset or a liability is measured / disclosed using the assumptions that the
market participants would use when pricing the asset or liability, assuming that the market
participants act in the economic best interest.

(iii) All assets and liabilities for which fair value is measured are disclosed in the financial statements

are categorised within fair value hierarchy based on the lowest level input that is significant to the
fair value measurement as a whole. The fair value hierarchy is described as below:
Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities

Level 2: Valuation techniques for which the lowest level inputs that are significant to the
fair value measurement are directly or indirectly observable.
Level 3: Valuation techniques for which the lowest level inputs that are significant to the
fair value measurement are unobservable.

(iv) For assets and liabilities that are recognised in the Balance sheet on a recurring basis, the

company determines whether transfers have occurred between levels in the hierarchy by

reassessing categorisation at the end of each reporting period (i.e) based on the lowest level input

that is significant to the fair value measurement as a whole.

(v) For the purpose of fair value disclosures, the company has determined the classes of assets and

liabilities based on the nature, characteristics and risks of the assets or

liabilities and the level of the fair value hierarchy as explained above.

(vi) The basis for fair value determination for measurement and / or disclosure purposes is detailed
below:

Investments in Equity The

fair value is determined by reference to their quoted prices at the reporting date. In the absence of
the quoted price, the fair value of the equity is measured using generally accepted valuation
techniques.

Non-derivative financial liabilities

The fair value of non-derivative financial liabilities viz, borrowings are determined for disclosure
purposes calculated based on the present value of future principal and interest cash flows,
discounted at the market rate of interest at the reporting date.

3.18 Significant Estimates and Judgements

The preparation of the 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.
Actual results could vary from these estimates. The estimates and underlying assumptions are
reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in
which the estimate is revised if the revision effects only that period or in the period of the revision or
future periods, if the revision affects both current and future years.Accordingly, the management
has applied the following estimates / assumptions / judgements in preparation and presentation of
financial statements:

(i) Property, Plant and Equipment, Intangible Assets and Investment Properties

The residual values and estimated useful life of PPEs, Intangible Assets and Investment Properties
are assessed by technical team duly reviewed by the management at each reporting date. Wherever
the management believes that the assigned useful life and residual value are appropriate, such
recommendations are accepted and adopted for computation of depreciation/amortisation. Also,
management judgement is exercised for classifying the asset as investment properties or vice versa.

(ii) Current Taxes

Calculations of income taxes for the current period are done based on applicable tax laws and
management's judgement by evaluating positions taken in tax returns and interpretations of
relevant provisions of law.

(iii) Contingent Liabilities

Management judgement is exercised for estimating the possible outflow of resources, if any, in
respect of contingencies / claims / litigations against the Company as it is not possible to predict the
outcome of pending matters with accuracy.

(iv) Impairment of Trade receivables

The impairment for financial assets are done based on assumptions about risk of default and
expected loss rates. The assumptions, selection of inputs for calculation of impairment are based on
management judgement considering the past history, market conditions and forward looking
estimates at the end of each reporting date.

(v) Impairment of Non-financial assets (PPE/Intangible Assets / Investment Properties)

The impairment of non-financial assets is determined based on estimation of recoverable amount of
such assets. The assumptions used in computing the recoverable amount are based on management
judgement considering the timing of future cash flows, discount rates and the risks specific to the
asset.

The Company's Operating segment is identified based on nature of activity, risks and returns. The
Company is primarily engaged in Trading of all kinds of tradeable and marketable goods. Accordingly
there are no separate reportable segments according to Ind AS 108 'Operating Segments' issued.

NOTE 24 - RELATED PARTY DISCLOSURES

a) Directors

Ratanchand Lodha - Non Executive Director

Jayaraman Madhu Suthan - Independent Director (Non-Executive)

Sarthak Sanghvi - Whole Time Director

Bharat Kumar Dughar - Independent Director (Non-Executive)

b) Other Key Managerial Personnel
Shripal Veeramchand Sanghvi - Promoter
Mahipal Sanghvi - Chief Financial Officer
Sarika Sanghvi - Promoter & Relative of Director

1. The company has no immovable properties the title deeds of which are not held in
company's name.

2. The company has not revalued its assets during the current financial year.

3. Wilful Defaulter and end use of funds - The company has not borrowed any funds from
Banks or financial institutions. Therefore this clause does not apply.

4. Registration of charges or satisfaction with registrar of companies - The company has not
registered its charges with Registrar of companies as it has not borrowed funds from any
person on the security of its properties.

5. Compliance with number of layers of companies - The company has no subsidiaries or
associate companies and The Companies (Restriction on number of layers) Rules 2017 is not
applicable.

6. Total Income - The company has no manufacturing units and is in the Retail trade business
operating with the Retail outlets in which it had invested. The company is in the process of
restrucuting its retail trade business.

7. Previous years figures have been regrouped/rearranged wherever necessary.

The accompanying notes are an integral part of the Financial Statements

For and on behalf of the Board As per our Report attached

For Shanti Guru Industries Limited For M/s. Venkat & Rangaa LLP

Chartered Accountants
FRN : 004597S

Jayaraman Madhusuthan Sarthak Sanghvi

Non-Executive Independent Director Whole-Time Director

DIN:09841051 DIN:10277570

T. Zameer
Partner

Mahipal Sanghvi Manish Agarwal Membership No. : 230441

CFO Company Secretary UDIN: 25230441BMIPSN2597

DIN: 07788200

Place: Chennai
Date : 29.05.2025