11. Accounting for provisions, contingent liabilities and contingent assets

Provisions are recognised in the balance sheet when the Company has a present obligation (legal or
constructive) as a result of a past event, which is expected to result in an outflow of resources
embodying economic benefits which can be reliably estimated. Each provision is based on the best
estimate of the expenditure required to settle the present obligation at the balance sheet date.
Where the time value of money is material, provisions are measured on a discounted basis. The
expense relating to any provision is presented in the statement of profit and loss net of any
reimbursement.

Constructive obligation is an obligation that derives from an entity's actions where:

a. by an established pattern of past practice, published policies or a sufficiently specific current
statement, the entity has indicated to other parties that it will accept certain responsibilities,
and

b. as a result, the entity has created a valid expectation on the part of those other parties that it
will discharge those responsibilities

Contingent liabilities are not recognised in the financial statements. Contingent liabilities are
disclosed 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 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 a reliable estimate of the amount cannot be made.

12. Income tax

Income tax expense comprises both current and deferred tax. Current and deferred taxes are
recognised in the statement of profit and loss, except when they relate to items credited or debited

either in other comprehensive income or directly in equity, in which case the tax is also recognised
in other comprehensive income or directly in equity.

Current income-tax is recognised at the amount expected to be paid to the tax authorities, using the
tax rates and tax laws, enacted or substantially enacted as at the balance sheet date.

Taxable profit differs from net profit as reported in the Standalone 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.

Deferred income tax assets and liabilities are recognised for temporary differences arising between
the tax base of assets and liabilities and their carrying amounts in the financial statements and is
accounted for using the balance sheet liability method.

Deferred income tax assets are recognised to the extent it is probable that taxable profit will be
available against which the deductible temporary differences and the carry forward of unused tax
credits and unused tax losses can be utilised.

The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced
to the extent that it is no longer probable that sufficient taxable profits will be available to allow or
part of the deferred income tax asset to be utilised.

Deferred tax assets and liabilities are measured using tax rates and laws, enacted or substantially
enacted as of the balance sheet date and are expected to apply to taxable income in the years in
which those temporary differences are expected to be recovered or settled. The effect of changes in
tax rates on deferred income tax assets and liabilities is recognised as an income or expense in the
period that includes the enactment or substantive enactment date.

Minimum Alternate Tax (MAT) paid in a previous years standing as the MAT credit on the asset side
has now been written off and charged to the statement of profit and loss as the company has opted
for Section 115BAA under Income Tax Act from Financial Year 2019-20. Accordingly, MAT is de¬
recognised from the Balance Sheet as there will be no future economic benefit associated with it to
the Company.

Deferred tax assets and liabilities are offset to the extent that they relate to taxes levied by the same
tax authority and they are in the same taxable entity, or a Group of taxable entities where the tax
losses of one entity are used to offset the taxable profits of another and there are legally
enforceable rights to set off current tax assets and current tax liabilities within that jurisdiction.

13. Recognition of Dividend and Interest income

Dividend income (including from FVOCI investments) is recognised when the Company's right to
receive the payment is established, it is probable that the economic benefits associated with the
dividend will flow to the entity and the amount of the dividend can be measured reliably. This is
generally when the shareholders or Board of Directors approve the dividend.

Under Ind AS 109 interest income is recorded using the Effective Interest Rate (EIR) method for all
financial instruments measured at amortised cost, debt instrument measured at FVOCI and debt
instruments designated at FVTPL. The EIR is the rate that exactly discounts estimated future cash
receipts through the expected life of the financial instrument or, when appropriate, a shorter period,
to the net carrying amount of the financial asset.

The EIR (and therefore, the amortised cost of the asset) is calculated by taking into account any
discount or premium on acquisition, fees and costs that are an integral part of the EIR.

14. Dividends on ordinary shares

The Company has not declared the dividend during the financial year ended 31^st March 2024.

15. Leases

Ind AS 116 Leases was notified on 30th March, 2019 and it replaces Ind AS 17 Leases, including
appendices thereto. Ind AS 116 is effective for annual periods beginning on or after 1st April, 2019.
Ind AS 116 sets out the principles for the recognition, measurement, presentation and disclosure of
leases and requires lessees to account for all leases under a single on-balance sheet model similar
to the accounting for finance leases under Ind AS 17. The standard includes two recognition
exemptions for lessees - leases of 'low-value' assets (e.g., personal computers) and short-term
leases (i.e., leases with a lease term of 12 months or less). At the commencement date of a lease, a
lessee will recognise a liability to make lease payments (i.e., the lease liability) and an asset
representing the right to use the underlying asset during the lease term (i.e., the right-of-use asset).
Lessees will be required to separately recognise the interest expense on the lease liability and the
depreciation expense on the right-of-use asset. During the previous period, the Company has
discontinued its long term lease agreements and have replaced it with short term lease agreements,
hence the Company reversed all the impacts related to Ind AS 116 already given in early financial
years.

16. Segment reporting

The Company is primarily engaged in the business of investment in Companies As such the
Company's financial statements are largely reflective of the investment business and there is no
separate reportable segment.

Pursuant to Ind AS 108 - Operating Segments, no segment disclosure has been made in these
financial statements, as the Company has only one geographical segment and no other separate
reportable business segment.

17. Onerous contracts

Provisions for onerous contracts are recognised when the expected benefits to be derived by the
Company from a contract are lower than the unavoidable costs of meeting the future obligations
under the contract. The provision is measured at the present value of the lower of the expected cost
of terminating the contract and the expected net cost of continuing with the contract. Before a
provision is established, the Company recognises any impairment loss on the assets associated with
that contract.

18. Earnings per share

Basic earnings per share have been computed by dividing net income attributable to ordinary equity
holders by the weighted average number of shares outstanding during the year. Partly paid-up equity
share is included as fully paid equivalent according to the fraction paid up. Diluted earnings per
share has been computed using the weighted average number of shares and dilutive potential
shares, except where the result would be anti-dilutive.

Statutory Reserve

Statutory Reserve represents the reserve created pursuant to the Reserve Bank of India Act, 1934 (the “RBI Act”) and related regulations applicable to
Securities Premium Reserve

Securities Premium Reserve is used to record the premium on issue of shares. The reserve is utilised in accordance with the provision of the Companies
Other Comprehensive Income :

Other comprehensive income includes effective portion of cash flow hedges. Effective portion of cash flow hedges represents the cumulative effective
portion of gains or losses arising on changes in fair value of hedging instruments entered into for cash flow hedges, which shall be reclassified to the
statement of profit and loss only when the hedged transaction affects the statement of profit and loss, or included as a basis adjustment to the non¬
financial hedged item, consistent with the Company accounting policies

Measurement of fair values

The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into
Level 1 to Level 3, as described below:

The management assessed that fair value of cash and cash equivalents, trade receivables, trade payables, and other financial assets and liabilities approximate their carrying amounts largely due to
Financial assets and liabilities are stated at carrying value which is approximately equal to their fair value.

The fair values of the equity investment which are quoted, are derived from quoted market prices in active markets. The Investments
The fair value of the financial instruments that are not traded in an active market is determined using valuation techniques. The Company
There have been no transfers between Level I and Level II for the years ended March 31, 2019 and March 31, 2018.

Reconciliation of Level III fair value measurement is as below:

Derivative Financial Instruments

The Company has not entered into any derivative financial contracts during the current and previous financial years.

Financial risk management

The Company has exposure to the following risks arising from financial instruments:

Credit Risk:

Credit risk is the risk of financial loss to the company if a counter-party fails to meet its contractual obligations.

Trade receivables

Credit risk with respect to trade receivables is limited, since the trade receivables amount is immaterial.

Cash and cash equivalents

The company holds cash and cash equivalents of Rs.1,82,912 at 31 March 2024 (31 March 2023: Rs. 21,599)

Market risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes in market rates and prices (such as equity price, interest rates etc.) or in the
Interest rate risk:

Interest rate risk arises from effects of fluctuation in prevailing levels of market interest rates on the fair value of Bonds / Debentures.

Exposure to interest rate risk:

Since the Company does not have any financial assets or financial liabilities bearing floating interest rates, any change in interest rates at the reporting date would not have any significant impact on
Currency risk:

Currently company does not have transaction in foreign currencies and hence the company is not exposed to currency risk.

Price risk:

Exposure

Note: 28 Pursuant to the provisions of section 135(5) of the Companies Act, 2013 (the Act), CSR provisions are not applicable to the company. As per the relevant provisions of

the Act read with Rule 2(1) (f) of the Companies (Corporate Social Responsibility Policy) Rules, 2014, the Company is required to spend at least 2% of the average net
profits determined under section 198 of the Companies Act 2013 during the immediately three financial years. The details of provisions and contributions made by
Company is as follows.

Note: 29: Additional Statutory requirements

a. The Company has not carried out any revaluation of Property, Plant and Equipment in any of the period reported in this Financial Statements hence reporting is not applicable.

b. There have been no proceedings initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made

c. The Company has not taken any borrowing from any banks or financial institutions and hence in relation company is not required to file any quarterly returns or statements.

d. The Company does not have any transactions with companies struck off.

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

f. There are no undisclosed Income surrendered or disclosed as income during the period / year in the tax assessments under the Income Tax Act, 1961

g. The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

h. The Company have 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
(a) 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

i. The Company is not declared as willful defaulter by any bank or Financial Institution as on the balance sheet date.

j. During the year, the Company has not traded or invested in Crypto Currency or Virutal Currency

k. The Company is in Process Of appointing a secretary to comply with provisions of section203 of the companies Act, 2013 read with Rule 8A of the companies (Appointment and Remuneration Of
Managerial Personnel) Rules 2014.

As per our attached report of even date For, Adinath Exim Resources Limited

Mahendra N. Shah & Co

Chartered Accountants SD/- SD/-

FRN: 105775W Manoj S Savla Vidhi S Savla

Director Director

DIN: 01529306 DIN: 09107866

SD/- SD/-

Chirag M Shah Bharat J Suthar

Partner Chief Financial Officer

Mem No. - 045706

Place: Ahmedabad Place: Ahmedabad

Date: May 6,2024 Date: May 6,2024