1. Corporate Information

Decu Mica limited (referred to os 'the company') Is a leading in manufacturing of Decorative Laminated Sheets.

Cut pieces & Industrial Insulators Board & lrang of Roods. The company has Its registered office at 306, 3rd I loor, Iscon Mall, Above Star Bazar, Near Jodhpur Cross Road, Satellite, Ahmedabad-380015.

2. A. MA11HIAL ACCOUNItNG POLICIES INFORMATIONS (i) Basis of preparation and presentation :

These individual financial Statements are prepared in accordance with the Indian Accounting Standards , (Ind A5) under the historical COS! convention on thp senna! Imic. oxrnpt for certain financial inctmment; which arc measured at fair values. 1 he Ind AS is prescribed under Section 133 of the Act re.rd with Rule 3 of Ihr Companies (Indian Accounting Standards) Rules, 2015 and amendments thereto.

Accounting policies have been consistently applied except where o newly Issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use. The Company retains the presentation and classification of items In the financial statements from one period to the next.

fii) Use of Estimates:

The preparation and presentation of financial Statements are in conformity with the Ind As which required management to make estimates and assumptions that affect the reported amounts of assets and liabilities (including contingent liabilities) on the date ot the linancial statements and tire reported amount of revenues and expenses during the reporting ycor.

Estimates and underlying assumptions are reviewed on an ongoing bosis. Revisions to the accounting • estimates are recognised in the period in wli .ch the estimates are revised and In any future periods affected Management believes that the estimates used in the preparation of financial statements are prudent and reasonable. Future results could differ due to these estimates and differences between lire actual results and estimates are recognized in the year in which the results are known / materialized.

Information about assumptions and estimation uncertainties that have a significant risk ol resulting In a material adjustment within the next financial year are included in the following notes:

Note 18 - Current / Deferred tax liabilities

Note 29 • Measurement of delined benefit obligations

Note 09 • Expected credit loss for receivables

(iii) Cniical Accounting Estimates and Judgement used in application of Accounting Policies

a. income taxes

Significant judgements are involved In determining the provision for Income Taxes, including amount expected to be paid / recovered lor uncertain tax positions. (Also refer Note 18 and 33.)

b. Property, Plant and Equipment

Property, plant and equipment represent a significant proportion of the asset base of the Company.

The charge In respect of periodic depreciation is derived after determining an estimate of an asset's expected useful life and the expected residual value at the end of its life. The useful life and residual values of the Company's assets are determined by the Management at the time the asset b acquired orvd reviewed periodically, including at each financia year end The life is basc-d on historical experience with similar assets as well as anticipation of future events, which may Impact their life such as changes in technology. |Rcfcr Note 3)

L( AHMEDABAaY.)

c. Impairment of financial Assets “ "

^{Thc im}P^a,rment provisions for financial assets are based on assumptions about nsk of default and expected loss rates. The Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation based on empirical evidence available without under cost or effort, existing market conditions as well as forward looking estimates at the end of each reporting period. (Refer Note *11).

d. Defined Benefit Plan

the cost ol thc defined benefit plan and other post-employment benefits and the present value of Such obligations is determined using actuarial valuation. An actuarial valuation involves making various assumptions that may differ from actual developments in thc future. These include the determination ol the discount rate, future salary increases, mortality rates and attrition rate. Due to 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 arc reviewed at each reporting date. {Refer Note 29.1).

e. Fair Value Measurement of Financial Instruments

When the fair value ol financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the Discounted Cash Flow (DD | model. The inputs to these models are taken from observable markets, where possible, but where this is not feasible, a degree of judgement is required in establishing lair values. Judgements include consideration of inputs such as liquidity risk, credit risk and volatility. Changes m assumptions about these factors could affect the reported fair values of financial instruments. (Refer Note 41).

I'v) Property, Plant and Equipment & Depreciation:

a) Property Plant and Equipment:

Properly, plant and equipment arc tangible Items that are held for use in the product ton or supply of goods and services, rental to others or for administrative purposes and are expected to be used during more than one period. The cost of nn item of property, plant and equipment is recognised os an asset if and only, ,f it is probable that future economic benefils associated with the item will flow to the Company and thc cost of tire item can be measured reliably Freehold land is carried jt cost less accumulated impairment losses. All other items of property, plant and equipment are staled at cost less accumulated depreciation and accumulated Impairment losses.

Cost of an item of property, plant and equipment comprises:

• Its purchase price, all costs including financial costs till commencement of commercial production are capitalized to tfsc cost of qualifying assets. Tax credit, if any, are accounted for by . reducing the cost of capital goods;

• Any other costs directly attributable to bringing the asset to the location and condition necessary for it lo be capable of operating in the manner intended by management

All other repairs and maintenance are charged _t0 profit or loss during the reporting period in which they are incurred.

b) Capital work in progress:

Capital work in progress is stated at cost and net of accumulated impairment losses, if any. All the direct expenditure related to implementation including incidental expenditure incurred during the period of implementation of a project, till it is commissioned, is accounted as Capita' work in progress (CWIP) and after commissioning the same 15 transferred / allocated to the respective item of property, plant and equipment. Pre-operating costs, being indirect in nature, are expensed to the statement of profit and loss as and when Incurred.

c) Depreciation methods, estimated uselul Ide and residual value:

Depreciation Is provided lor property, plant and equipment so as to expense the COM over their • estimated useful lives based un evaluation. The residual values, uselul lives and methods ol depreciation ol property, plant and equipment are reviewed at each financial year end and adjusted prospectively, II appropriate.

Depreciation on fixed assets has been provided on straight hue method based on the their useful lives which are in line with as Specified under schedule II of the Act. However, land is not depreciated. However, land is not depreciated.

Depreciation Is calculated on pro rata basis with reference to the date of addition/d-sposal. The residual values are not more than 5% of the original cost of asset.

d) Derecognition of Property, Plant and Equipment

The carrying amount of an item of property, plant and equipment is derccogniccd on disposal or when no future economic benefits are expected from its use or disposal. The gain or loss from the derecognition of an item of property, plant and equipment is recognised in profit or loss when the item is dcrccogniced. •

M Impairment of non - financial assets

The Company reviews the carrying amount of its Propeity, Plant and Equipment, including Capital Work In progress Of a "Cash Generating Unit" (CGU) at the end of each reporting period to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists,

•he recoverable amount of the asset is estimated morder to determine the extent of the impairment loss (if any) When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the Cash Generating Unit to which the asset belongs.

Recoverable Amount is determined:

0 In case of individual asset, at higher of the fair value less cost to sell and value in use: and

ii) in case of cash generating unit (a group of assets that generates identified. Independent cash flows), at the higher of the cash generating unit's fair value less cost to sell and the value in use.

If the recoverable amount of an 3sset (or cash generating unit) is estimated to be less than Its carrying amount, the carrying amount of the asset |or cash-generating unit) Is reduced to its recoverable amount. An impairment toss is recognucd immediately in the Statement ot Protit arid loss.

(vi) financial Instruments:

A financial instrument is any contract that gives rise to o financial asset of one entity and a financial liability or equity instrument of another entity. The Company classifies financial instruments issued into financial liability and equity based on the substance of the arrangement and the contractual terms. Significant judgement is required to assess whether a particular asset is a financial instrument or otherwise. An asset that represents a contractual right to receive cash that is Subject to other than only passage of time or cannot be sold Independently of other operating rights have not been presented as financial assets. Such assets are mainly in the nature of security deposits and investments in equity shares for receiving services from third parties including government-controlled organisations.

1. Financial Assets:

i. Initial recognition and measurement:

At initial recognition, the Company measures a financial asset (which are not measured at fair value) through profit or low at its fair value plus or minus transaction costs that are directly attributable to the acquisition or issue of the financial osset. .

financial assets arc classified, at Initial recognition, ns financial assets measured at fan value or as financial assets measured at amortised cost.

ii. Subsequent measurement:

For purposes of subsequent measurement, financial assets are Classified in following categories:

i) Financial assets measured at amortised cost;

ii) Financial assets at fair value through profit or loss (FVFPL) and

iit| I m.incul assets at fair value through other comprehensive income (FVOCI)

l he Company classifies its financial assets in the above mentioned categories based on

a) The Company's business model for managing the financial assets, and

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b) The contractual cash flows characteristics ol the financial asset.

i) Financial assets measured at amortised cost:

A financial asset is measured at amortised cost it both of the following conditions are met: _ - _

a) The financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows and the Contractual terms of the financial assets give rise on specified dates to cash flows that 3re solely payments of principal and interest fSPPI) on the principal amount outstanding.

b) financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method Amortised cost is calculated by taking Into account any discount or premium on acquisition and fees or costs that are an Integral part of the flft. The EIR amortisation is Included in finance income in the profit or loss. I he losses arising from impairment ore recognised in the profil or loss.

ii) Financial assets at fair value through profit or loss (FVTPL):

Financial assets are measured at fair value through profit and loss unless it is measured at amortised cost or at fair value through other comprehensive income on initial recognition. The transaction costs directly attributable to the acquisition of financial assets and liabilities at fair value through profit or loss are immediately recognized in profit or loss.

<ii| financial assets at fair value through other comprehensive income (FVOCIJ:

financial assets are measured at fair value through other comprehensive income if these financial assets are held within a business model whose objective is achieved by collecting both contractual cash flows that gives rise on specified dates to solely payments of principal and interest on the principal amount outstanding and by selling financial assets

The Company may elect to designate a financial asset, which otherwise meets amortised cost or FVOCI criteria, as at FVTPL. However, such election is allowed onfy if doing so reduces or eliminates a measurement or recognition inconsistency (referred to as 'accounting mismatch*!

Trade receivables. Advances, Security Deposits, Non-Current Investments, Cash and Cash Lquivalents etc. are classified for measurement at amortised cost.

iii. Do recognition:

The Company derecognizes a financial asset when 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 in its entirety, the difference between the assets's carrying amount and the sum of the consideration received and receivable is recognized in the Statement of Profit and Loss.

iv. Impairment of financial assets:

At each reporting date the company assesses, whether a financial assets or group ol financial assets is impaired. In accordance of Ind AS 109, the company applies expected credit toss (ECL| riioihd for measurement and recognition of impairment loss. As a practical expedient, the company uses a provision matrix to determine impairment loss on portfolio of US trade receivables. The provision matrix is based on its historically observed default rates over the expected life of trade receivables. ECL impairment loss jllov^nrre (or reversal) recognized

during the period is recognized os an expense / Income respectively in Hie statement of profit ami loss Provision for tCt «$ presented as deduction from carrying amount of trade receivables f or all other financial assets, expected credit losses are measured at an amount equal to 1? month expected credit losses or at an amount equal to lifetime expected losses, if the credit risk on the finanrl.il asset has increased significantly since initial recognition

2. financial liabilities:

I. Initial recognition and measurement:

All liri.inci.il liabilities are recognised initially at fair value and subsequently carried at umuitiscd cost using the effective interest method.

Hie company's financial liabilities include trade and other payables, loans and borrowings Including bank overdrafts.

li. Subsequent measurement:

The measurement of financial liabilities depends on their classification, ,i_S described below:

i) financial liabilities measured at amortised cost.

ii) Financial liabilities at fair value through profit or loss.

I) Financial liabilities measured at amortised cost:

Subsequently, all financial liabilities are measured at amortised cost. Any discount or premium on redemption/ settlement <s recognised in the Statement of Profit and Loss as lin.mce cost over the life of the liability using the effective Interest rnetliod and adjusted lo the liability figure disclosed in the Balance Sheet

ii) Financial assets at fair value through profit or loss (FVTPI}:

financial liabilities at lair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss, financial liabilities are classified as held lor trading if they arc Incurred for the purpose cf repurchasing in the near term. Gains or losses on liabilities held for trading arc recognised in the profit Oi loss.

financial liabilities designated upon initial recognition at fair value through profit or loss are designated as such at the initial dale of recognition, and only if the criteria in Ind AS 1OT are satisfied. For liabilities designated as FVTPI, fair value gains/ losses

attributable to changes in own credit risk are recognized in OCI. These gains/ loss are- not subsequently transferred to P&L However, the company may transfer the cumulative gain or toss within equity. All other changes in fair value of such liability are recognised in the statement of profit and loss.

iii. Derecognition:

Financial liabilities are derecognised when the liability is extinguished, that ts, when the contractual obligation is discharged, cancelled and on expiry. When an existing financial liability is replaced by another from the same fender nn substantially different terms, or the temu of an existing liability are substantially modified, .urh an exchange or modification is treated as tlu: derecognition of the original liability and the recognition of a new liability. The difference in the respective cariying amounts is recognised in the statement of profit and loss.

3. Off-setting of financial instruments: ~ -

Financial assets and financial liabilities are offset and the net amount k reported in the standalone balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an Intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously

(vii) Inventories

Inventories are valued at lower of cost and net realizable value. Cost in respect of raw materials are determined on FIFO basis. Net realizable value «s the estimated selling price In the ordinal course of business less estimated cost necessary to make sale.

Costs in respect of process and finished goods are computed on weighted average basis method. Finished goods and process stock include cost ol conversion and other costs incurred in acquiring the inventory and bringing them to their present location and condition.

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Spares (not meeting the definition of property, plant and equipment) are accounted as inventory anrf expensed to the statement of profit and loss when issued for consumption.

(viii) Borrowing Cost:

interest and oilier costs that the Company Incurs in connection with the borrowing of funds are rdent.hcd as borrowing costs. I he Company capitalises borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset as part of the cost of that asset. Other borrowing costs are recognised as an expense in the period in which it is incurred.

A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use. Fhe Company identifies the borrowings into specific borrowings and general borrowings Specific borrowings are borrowings that are specifically taken for the purpose ol obtaining a qualifying asset. General borrowings include all other borrowings except the amount outstanding as on the balance sheet date of specific borrowings. Horrowing cost incurred actually on specific botrowings are capitalised to the cost of the qual.lying asset. Fur general borrowings, the Company determines the amount of ' borrowing costs eligible for capitalisation by applying a capitalisation rate* to the expenditures on the qualifying asset b,iseri on the weighted average of the

borrowing costs applicable to general borrowings. The capitalisation on burrowing costs commences when the Company incurs expenditure for the asset. Incurs borrowing cost and undertakes activities that are necessary to prepare the asset for its intended use or sale. The capitalisation of borrowing costs is suspended during extended periods in which active development of a qualifying asset is suspended. The capitalisation of borrowing costs ceases when substantially all the activities necessary to prepare the qualifying asset lor its intended use or sale are complete.

fix) Statement of Cash flows;

Cash flows arc reported using the indirect method, whereby prol.t / (loss) before extraordinary items and lax .s adjusted for the effects of transactions of non cash nature and any deferrals or accruob of post o. future cash receipts or payments. Ihe cash flows from operating, mvesting and financing activities of the Company are segregated based on the available information _ _f _

{x| Income Recognition Policy:-

Revenue from Contacts with Customers

Revenue fiom contracts with customers is recognued when control ol the goods or services ore Ir.iinferred lo the customer .it an amount that reflects the consideration to which the company expects to be entitled an exchange for those goods or services.

Ihe revenue towards satisfaction of performance « measured at the amount of transaction price (net of vat .able consideration) allocated to that performance obligations. The transaction puce of goods sold and service rendered is net of variable consideration on account of various discounts offered by the company as part of contract. These variable considerations are estimated based on the expected value of outflow. Revenue (net of variable consideration! is recognised only to the extent that it is highly probable that amount v/ill not bo subject to significant reversal when uncertainly relating to its recognition resolved.

Satc of Product:

Ihc performance obligation in case of sale of product is satisfied at a point in time re. when the material is shipped to the customer or on delivery to the customers as may be specified hi Ihe contract. '

Other Operating Revenue- Export Incentives

Export entitlements are recognized in the Statement of Profit and loss when the right to receive credit as per the terms ol scheme is established in respect of Ihc exports made and where there is no significant uncertainly regarding the ultimate collection of the relevant export proceeds.

Other Income

Other Income is recognized on accrual basis except when realization of such income a uncertain.

(xlj foreign Currency Transactions:

i unction.il currency of the Company is Indian rupee. The financial statements have been presented under Its functional currency Any transacts™ that is denominated In a currency other than the functional currency t$ regarded as foreign currency transaction. All foreign currency transactors are recorded, on initial recognition in the functional currency, by applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the djte of the transaction. In case of consideration received or paid in advance, tin- exchange rate prevailing on the dale of receipt or payment o^{ advance is considered when subsequently the related asset Is given up or received to the extent ol advance consideration.

At the end of the reporting period:

1 foreign currency monetary items are translated using the cxcliange rate for Immediate delivery at the end of the reporting period;

² non-monclary items that are measured in terms of historical cost in a foreign currency nr_C translated using the exchange rate at the date of ’he transaction; and

1. non monetary items that are measured at fair value in a foreign currency are translated using Ihe exchange rates at Ihe date when the fair value was measured. ____

exchange difference prising on the settlement of monetary items or on translating monetary items at rates different from those at which they were transited on initial recognition during the period or in previous financial statements are recognised in profit or loss in the period in which they .arise

|xii) Fmptoyee Benefits:

i. Short term employee benefits:

Short Term benefits arc iccogniscd as an expense at the undlscounted amounts in the Statement of Profit and Loss of the year in which the related service ^ rendered. In case of Leave Encashment, the company does not allow carry forward of unavailed leave and hence unavdiled leaves are encashed In the current year itself.

ii. Post-employment benefits:

Post employment benefits are benefits (oilier than termination benefits and short-term employee benefit!) that .ire payable after the completion of employment. Post-employment benefits are identified under defined contribution plans and defined benefit ptjns.

a) Defined contribution plan

I he employee and Company make monthly fixed Contribution to Government of India Employee's Provident fund equal to a specified percentage of the Cover employee'! Hilary, ’ Provision for the same is made In the year in which service are render by employee.

b) Defined benefit plans:

Host-employment benefits in the form of Gratuity are considered as defined benefit plan and determined on actuarial valuation using the projected unit credit method at the balance sheet date. Actuarial Gains or losses through re measurement of the net obligation of a defined benefit liability or asset is recognised in Other Comprehensive Income. Such re-measurements are not reclassified to Statement of Profit and loss in subsequent periods.

Gratuity is funded through a trust for which a policy with SBI life Insurance company Limited has been taken.

•ii- Other long-term employment benefit*

Employee* Benefits that are neither short-term employee benefit nor post-employment benefit nor termination benefits arc other long term employee benefits. The Company does not allow carry , forward of un-availed leave and hence un-availed leaves are encashed in the current year itself.

(viii) Earning* per Sharp

Basic earnings per share is calculated by dividing the profit or loss for the period attributable to the equity holders of the Company by the weighted average number of ordinary share* outstanding during the year for the purpose of calculating diluted earnings per share, the net profit or loss 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.

(xiv| Proyjaign;, Contingent Liabilities arid Contingent Assets :

Provisions are recognised only when there is a present obligation as a result of past events and when a reliable estimate of the amount ul obligation can be made. Contingent liability is disclosed tor (i) Possible obligation which will be confirmed only by future events not wholly within the control of the Company or (ii) Present obligations arising from past events where it is not probable that an outflow of resources will l"‘ roquiiod «o tnttlo the obligation 01 .. rchoblc estimate of the |h~ Obligation cannot be

made. Contingent assets arc not recognised in the financial staiemedtS^—^i^X

|xv| Taxe* on Income:

a) Current Tax:

Current tax is determined on Income for the year chargeable to tax in accordance on the basis ol the tax laws enacted o» substantively enacted at the end ol the reporting period Current tax Items are ' recognised in correlation to the underlying transaction either in profit or loss or OCl or directly in equity The Company has provided for the tax liability based on the significant judgment that tin-taxation authority will accepl the lax treatment.

b) deferred rax:

Deferred tax is iccogniscd lor all the timing differences and is measured using Hie tax rates and the tax laws enacted or substantively enacted at the reporting date. Deferred tax assets are recognised for all deductible temporary differences, unabsorbed losses and tax credits to the extent that >t Is probable that future taxable profits will be available against which those deductible temporary differences, unnbsorbed losses and tax credits will tx> utilised. Other deferred tax assets are recop.nired if there is reasonable certainty that there will be sufficient future taxable profit available to realise such assets. Deferred Ux relating to Items recognised outside prolil or loss is recognised outside profit or loss (either In other comprehensive income or in equity). Deferred lax items are recognised in correlation to the underlying transaction either In OCl or directly in equity.

|xi/i) £nir Value Measurement

The Company categories assets and liabilities measured at fair value into one of three levels depending on the ability to observe inputs employed in their measurement which are described as follows:

(a) level 1 inputs are quoted prices (unadjusted) in active markets lor identical assets or liabilities.

|b) level 2 Inputs arc inputs that are observable, either directly or indirectly, other than quoted

prices included within level 1 foi the asset or liability.

<0 ^{Levcl 3} '"Pul* aie unobservable inputs for the asset or liability reflecting significant

modifications In observable related market data or Company's assumptions about pricing by market participants.

lor assets and liabilities that arc recognized in the financial statements at fair value on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re assessing categorization at the end of cjcIi reporting period and discloses the same.

(xvil) Segment roportine:

'he Chief Operational Decision Maker (COOM) monitors the operating results of its business Segments separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on profit or loss and is measured consistently with profit or loss in the financial statements. Operaling segments are reported In a manner consistent with the internal reporting to the CODM.

Accordingly, the Board of Directors of the Company is CODM for the purpose of segment reporting Refer note 36 fur segment information presented.

2 B. Standards issued but not vet effective

Hie Ministry of Corporate Affairs lias not notified any amendments under Companies (Indian Accounting Standards) Amendment Mutes. 2022 for 31st March 2024.

With respect to amendments made v*le notification no G.S.R 255(E) dated 31st March 2023 by The Ministry of • Corporate Affairs lor Companies (Indian Accounting Standards) Amendment Rules,2022. There was no material impact on the financial statements of the company during the financial year with respect to the said INI) AS amendment related to hut AS 1 - Presentation of financial Statements, Ind AS 8 - Accounting Policies. Chances In Accounting Estimates and Cnors & Ind A5 12 - Income Itixcs.