Accounting Policies of Stallion India Fluorochemicals Ltd. Company

Mar 31, 2025

The Company applies the expected credit loss ("ECL”) model for measurement and recognition of impairment
loss on trade receivables. For this purpose, the Company follows a "simplified approach” for recognition of
impairment loss allowance on the trade receivable balances. As a practical expedient, the Company uses a
provision matrix to determine impairment loss allowance on portfolio of its trade receivables. The provision
matrix is based on its historically observed default rates over the expected life of the trade receivables and is
adjusted for forwardlooking estimates. Further, need for incremental provisions have been evaluated on a case
to case basis considering forward-looking information based on the financial health of a customer if available,
litigations/disputes etc.

Note: 6,341,514 equity shares were issued during the year ended March 31, 2024, consequent of business
combination to and as part of the slum sale business transfer arrangement.

b) Terms/ rights attached to equity shares

The Company has a single class of equity shares. Accordingly all equity shares rank equally with regard
to dividend and share in the Company''s residual assets. The equity shareholders are entitled to receive
dividend as declared from time to time. The voting rights of an equity shareholders on a poll (not on show
of hands) are in proportion to its share of the paid-up equity capital of the Company. Voting rights cannot
be exercised in respect of shares on which any call or other sums presently payable have not been paid.

On winding up of the company, the holders of equity shares will be entitled to receive the residual assets of the
company, remaining after distribution of all preferential amounts in proportion to the number of equity shares
held.

Note : As per records of the Company, including its register of shareholders/ members and other declaration
received from shareholders regarding beneficial interest, the above shareholding represent both legal and
beneficial ownership of shares.

. Equity shares allotted as fully paid-up (during 5 years preceding ending March 31, 2025) pursuant to contracts
e)

without payment being received in cash.

During the year ended March 31, 2024, the Company has acquired Stallion Enterprise, a proprietary concern
owned by Mr. Shazad Rustomji, under slum sale through business transfer agreement dated September 30,
2023. This transaction was approved by the Shareholder of the Company on September 28, 2023 and was
consummated on September 30, 2023 through preferential issue of 6,341,514 equity shares of the Company to
Mr. Shazad Rustomji at a price of INR 51.20 per equity share. Accordingly, the Equity Share capital and Securities
Premium has been credited with INR 664.20 lacs and INR 2,736.50 lacs respectively on the settlement of the
purchase consideration. The effect of the said transaction is reflected in the Statement of Changes in Equity.

b) Nature and purpose of reserves

(i) Securities Premium

Securities premium is used to record premium received on issue of shares. The reserve is utilised in accordance
with the provisions of the Indian Companies Act, 2013 (the "Companies Act”).

(ii) Retained Earnings

Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve,
dividends or other distributions paid to shareholders.

(iii) Other Comprehensive Income

This Reserve represents the cumulative gains (net of losses) arising on the revaluation of items measured
at fair value through Other Comrehensive Income, net of amounts reclassified, If any, to Retained Earnings
when those instruments are disposed off.