అకౌంట్స్ గమనికలుMuzali Arts Ltd.

Mar 31, 2025

21) Commitment and contingencies

There are no contingent liabilities and commitment as on 31st March 2025.

22) Financial Instruments- Fair Values And Risk Management

The significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial assets, financial liabilities and equity instrument are disclossed in note 2.2 to the financial statements.

23) Financial Risk Management

The Company''s principal financial liabilities comprises of borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the company''s operations. The company''s principal financial assets include trade and other receivables, investments and cash and cash equivalents and bank balances other than cash & cash equivalents that are derived directly from its operations.

The Company is exposed primarily to fluctuations in credit, liquidity and market risks, which may adversely impact the fair value of its financial instruments. The Company has a risk management policy which covers risks associated with the financial assets and financial liabilities. Company''s overall risk management focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on t h e financial performance of the company.

Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other risks, such as equity price risk and commodity price risk.

(i) Foreign Currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The company is not involved in foreign exchange transaction. Hence, There is no foreign currency risk involved.

(ii) Interest Rate Risk

Interest Rate risk is the risk that the fair value of future cashflows of a financial instrument will fluctutae because of changes in Market Interest Rates. The company''s exposure to the risk of changes in Market Interest Rates relates primarily to the Company''s short term debt obligations with floating interest rates. The Company manages its interest risk by having a balanced portfolio of fixed and variable rate loans and borrowings.

(iii) Commodity Price Risk

The Company is affected by the price volatility of it''s commodities. The company is engaging in service sector. Hence, no commodity risk exist

(iv) Credit Risk

Credit risk arises from the possibility that counter party may not be able to settle their obligations as agreed. To manage this, the Company periodically assesses the financial reliability of customers, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of accounts receivable. Individual risk limits are set accordingly.

The company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there is a significant increase in credit risk the company compares the risk of a default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition.

Trade receivables:

Trade receivables are non-interest bearing and are generally on credit terms of 7 to 30 days. An impairment analysis is performed at each reporting date on an individual basis for major customers. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The calculation is based on historical data of expected credit loss, actual credit loss and party-wise review of credit risk.

(v) Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable price. The Compan/s corporate treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management. Management monitors the Compan/ s net liquidity position through rolling forecasts on the basis of expected cash flows.

24) Capital Management

For the purposes of the Company''s Capital Management, capital includes issued capital and all other equity reserves.

The primary objective of the Company''s Capital Management is to maximise shareholder value. The company manages its capital structure and makes adjustments in the light of changes in economic environment and the requirements of the financial covenants.

The calculation of capital for the purpose of capital management is as follows:

1) Debt equity ratio - Total debt divided by Total equity

The debt-to-equity (D/E) ratio is calculated by dividing a Company''s total liabilities by its shareholder equity. The ratio is used to evaluate a Company''s financial leverage.

27) Audit trail

The Ministry of Corporate Affairs (MCA) has prescribed a new requirement for companies under the proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules, 2021 requiring companies, which uses accounting software for maintaining its books of account, shall use only such accounting software which has a feature of recording audit trail of each and every transaction, creating an edit log of each change made in the books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled.

The Company has used accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all the relevant transactions recorded in the software. Further, there are no instance of audit trail feature being tampered with.

28) Segment Reporting

The Company is engaged only in the business of producing and reselling of Coil, Transformer Lamination Sheet and related products. As such, there are no separate reportable segments, the disclosure as required as per Indian Accounting Standard on "Operating Segments" (IND AS - 108) is not given.

29) Other Statutory Information

1 No proceedings have been initiated or are pending against the Company for holding any benami property under the Prohibition of Benami Property Transactions Act, 1988 (as amended) and rules made thereunder.

2 The Company do not have any transactions with companies struck off.

The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

3

4 The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

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 directly or indirectly lend or invest in other persons or entities identified in any manner

5 whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding

⁶ (whether recorded in writing or otherwise) that the Company shall

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)

ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

7 The Company have no such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assements under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies

⁸ (Restriction on number of Layers) Rules, 2017.

9 The Company has not been declared a wilful defaulter by any bank or financial institution or other lender (as defined under the Companies Act, 2013) or consortium thereof, in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.

29) Previous year''s figures have been regrouped / rearranged wherever necessary to conform to the current year presentation.

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Mar 31, 2016

NOTE 16. NOTES TO FINANCIAL STATEMENTS

a) None of the Earning/Expenditures is in Foreign Currency.

b) Balance of Debtors, Loans and Advances are subject to confirmation and reconciliation.

c) In the opinion of the Board, the Current Assets, Loans & Advances are approximately of the value stated if realized in the ordinary course of business. The provision for depreciation and all known liabilities are adequate and not in excess of the amounts reasonably necessary.

d) Previous year’s figures have been regrouped, rearranged wherever necessary to make them comparable with those of current year.

e) In the opinion of the management and to the best of their knowledge and belief the value under the head of the current assets and noncurrent assets are approximately of the value stated, if realized in ordinary course of the business, except unless stated otherwise. The provision for all the known liabilities is adequate and not in excess of amount considered reasonably necessary

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Mar 31, 2015

1. Terms/ right attached to Equity Shares

The Company has Only one Class of equity shares having par value of Rs.10 per Shares. Each holder of Equity Shares is Entitled to one vote per share. In the event of liquidation of the company, the holders of equity share will be entitled to receive remaning assets of the Company, after distribution of all preferential amount. The distribution will be in proportion to the number of equity shares held by the shareholders.

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Mar 31, 2014

1. Under the Micro Small and Medium Enterprises Development Act , 2006, certain disclourses are required to be made relating to Micro, Small and Medium Enterprises. The company is in the process of compliant relevant information from its suppliers about their coverage under the Act. Since the reveling information is not presently available, no disclosures have been made in the accounts.

2. Corresponding figures of the previous year have been regrouped or rearranged to make it comparable with this years's figure, wherever necessary.

3. The company is having net deferred tax assets. Deferred tax assets, which have arisen mainly on account of unabsorbed depreciation, have been considered for recognition, as there is virtual certainity that sufficient further taxable income will be available against which such deferred tax assets can be realized. Therefore, net deferred tax asset has been recognized in the accounts of the company.

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Mar 31, 2013

1. Under the Micro Small and Medium Enterprises Development Act ,2006, certain discloures are required to be made relating to Micro, Small and Medium Enterprises. The company is in the process of complying relevant information from its suppliers about their coverage under the Act . Since the relevant information is not presently available, no disclosures have been made in the accounts.

2. Corresponding figures of the previous year have been regrouped or rearranged to make it comparable with this years's figure, wherever necessary.

3. The company is having net deferred tax assets. Deferred tax assets, which have arisen mainly on account of unabsorbed depreciation, have been considered for recognition, as there is virtual certainity that sufficient future taxable income will be available against which such deferred tax assets can be realized. Therefore, net deferred tax asset has been recognized in the accounts of the company.