Notes to Accounts of Callista Industries Ltd.

Mar 31, 2025

1. In the opinion of Directors, the Current Assets, Loans & Advances and Investments have a value on realization in the ordinary course of business, which is at least equal to the amount at which they are stated in the Balance Sheet.

2. Contingent Liabilities:

Contingent Liability is not recognised in the financial statement.

3. Balance under the head ''Trade Receivables'', ''Trade Payables'', ''Loan and Advances Receivable and Payable'' are shown as per books of accounts subject to confirmation by concerned parties and adjustment if any, on reconciliation thereof. Confirmation letters have been issued to parties for confirmation of balances with the request to confirm or send / comments by the stipulated date failing which the balances as appearing in the letter would be taken as confirmed. Confirmation letters have been received in very few cases; however no adverse communication has been received from the parties.

The information has been given in respect of such vendors to the extent they could be identified as micro and small enterprises on the basis of information available with the company.

7. Financial instruments and risk management Fair values

1. The carrying amounts of trade payables, other financial liabilities (current), borrowings (current), trade receivables, cash and cash equivalents, other bank balances and loans are considered to be the same as fair value due to their short-term nature.

2. The fair value of financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

Set out below, is a comparison by class of the carrying amounts and fair value of the Company''s financial instruments, other than those with carrying amounts that are reasonable approximation of fair values:

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques, which maximise the use of observable market data and rely as little as possible on entity specific estimates. If significant inputs required to fair value an instruments are observable, the instrument is included in Level 2.

Level 3: If one or more of the significant inputs are not based on observable market data, the instruments is included in level 3

Management uses its best judgement in estimating the fair value of its financial instruments. However, there are inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates presented above are not necessarily indicative of the amounts that the Company could have realized or paid in sale transactions as of respective dates. As such, the fair value of financial instruments subsequent to the reporting dates may be different from the amounts reported at each reporting date. In respect of investments as at the transaction date, the Company has assessed the fair value to be the carrying value of the investments as these companies are in their initial years of operations obtaining necessary regulatory approvals to commence their business.

---

Mar 31, 2024

J. Provisions

Provisions for legal claims and returns are recognised when the company has a present legal
or constructive obligation as a result of past event, it is probable that an outflow of resources
will be required to settle the obligation and the amount can be reliably estimated. Provisions
are not recognised for future operating losses.

Provisions are measured at the present value of management''s best estimate of the
expenditure required to settle the present obligation at the end of the reporting period. The
discount rate used to determine the present value is a pre-tax rate that reflects current
market assessments of the time value of money and the risks specific to the liability. The
increase in the provisions due to the passage of time is recognized as interest expense.

K. Earnings per share

i. Basic earnings per share

Basic earnings per share are calculated by dividing:

• The profit attributable to owners of the company

• By the weighted average number of equity shares outstanding during the financial
year, adjusted for bonus elements in equity shares issued during the year and
excluding treasury shares.

ii. Diluted earnings per share

Diluted earnings per share adjust the figures used in the determination of basic

earnings per share to take into account:

• The after income tax effect of interest and other financing costs associated with
dilutive potential equity shares, and

• The weighted average number of additional equity shares that would have been
outstanding assuming the conversion of all dilutive potential equity shares.

I. NOTES TO ACCOUNTS:

1. In the opinion of Directors, the Current Assets, Loans & Advances and Investments have a
value on realization in the ordinary course of business, which is at least equal to the amount
at which they are stated in the Balance Sheet.

2. Contingent Liabilities:

Contingent Liability is not recognised in the financial statement.

3. Balance under the head ''Trade Receivables'', ''Trade Payables'', ''Loan and Advances Receivable
and Payable'' are shown as per books of accounts subject to confirmation by concerned
parties and adjustment if any, on reconciliation thereof. Confirmation letters have been
issued to parties for confirmation of balances with the request to confirm or send / comments
by the stipulated date failing which the balances as appearing in the letter would be taken as
confirmed. Confirmation letters have been received in very few cases; however no adverse
communication has been received from the parties.

The information has been given in respect of such vendors to the extent they could be
identified as micro and small enterprises on the basis of information available with the
company.

7. Financial instruments and risk management
Fair values

1. The carrying amounts of trade payables, other financial liabilities (current), borrowings
(current), trade receivables, cash and cash equivalents, other bank balances and loans are
considered to be the same as fair value due to their short-term nature.

2. The fair value of financial assets and liabilities is included at the amount at which the
instrument could be exchanged in a current transaction between willing parties, other
than in a forced or liquidation sale.

Set out below, is a comparison by class of the carrying amounts and fair value of the
Company''s financial instruments, other than those with carrying amounts that are
reasonable approximation of fair values:

*Fair value of instruments is classified in various fair value hierarchies based on the following three
levels:

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices.

Level 2: The fair value of financial instruments that are not traded in an active market is determined
using valuation techniques, which maximise the use of observable market data and rely as little as

possible on entity specific estimates. If significant inputs required to fair value an instruments are
observable, the instrument is included in Level 2.

Level 3: If one or more of the significant inputs are not based on observable market data, the
instruments is included in level 3

Management uses its best judgement in estimating the fair value of its financial instruments.
However, there are inherent limitations in any estimation technique. Therefore, for substantially all
financial instruments, the fair value estimates presented above are not necessarily indicative of the
amounts that the Company could have realized or paid in sale transactions as of respective dates. As
such, the fair value of financial instruments subsequent to the reporting dates may be different from
the amounts reported at each reporting date. In respect of investments as at the transaction date,
the Company has assessed the fair value to be the carrying value of the investments as these
companies are in their initial years of operations obtaining necessary regulatory approvals to
commence their business.

For Ramanand & Associates For and on behalf of the board

Chartered Accountants Callista Industries Limited

FRN 117776W

CA Ramanand Gupta

Managing Partner Rashmi Ravi Sharma Binita Devang Shah

M.No. 103975 Managing Director Director

UDIN: 24103975BKAHYX2006

Place: Mumbai

Date: 29^th May 2024

---

Mar 31, 1996

1. Preliminary and share issue expenses are amortised in 10 equal instalments.

2. Balance of Debtors & Creditors, Loans & Advances are subject to confirmation.

3. Previous year figures have been regrouped wherever found necessary.

4. Figures have been rounded off to the nearest rupee.