(k) Provisions

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that
an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the
amount of the obligation. When the Company expects some or all of a provision to be reimbursed the reimbursement is recognized as a
separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the statement of
profit and loss net of any reimbursement.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the
risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance
cost.

(l) Contingent liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non¬
occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognized because
it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases
where there is a liability that cannot be recognized because it cannot be measured reliably. The contingent liability is not recognized in books
of account but its existence is disclosed in financial statements.

(m) Earnings per share

Basic earnings per equity share is computed by dividing the net profit attributable to the equity holders of the Company by the weighted
average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the
period is adjusted for events such as fresh issue, bonus issue that have changed the number of equity shares outstanding, without a
corresponding change in resources.

(n) Cash and cash equivalents

Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand, cheques in hand and short-term
deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value and having original
maturities of three months or less from the date of purchase, to be cash equivalents.

(o) Valuation of Inventories

Raw Material:At cost (on weighted average method)

Finished goods:At cost or net realizable value whichever is lower.

WIP: At cost or net realizable value whichever is lower.

Stores & Spares:At cost.

(p) Operating Lease

Lease where the lessor effectively retains substantially all the risks and benefits of ownership of the leased assets are classified as
operating lease. Operating lease charges are recognized as an expense in the Statement of Profit & Loss on actual basis.

(q) Cash Flow Statement

The Cash Flow Statement is prepared by the indirect method set out in Accounting Standard (AS) 3 on Cash Flow Statements and presents
the cash flows by operating, investing and financial activities of the Company.

Cash and cash equivalents presented in the Cash Flow Statement consists of cash in hand, cheques & drafts in hand and balances in
current account/ flexi deposit.

Retained earnings

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

During the year, the Company has issued and allotted 34,23,600 fully paid up equity shares through the initial public offer at an issue price
of ?100.00 per shares (Including Premium).

Explanation on Adjustment for Previous Year

1. Company has implemented an automated system for preparing and maintaining the fixed assets register in the financial year 2024-25,
and noted that due to the incorrect estimate of life of assets and incorrect calculation, depreciation amounting to Rs. 27.47 Lakhs has been
under charged.

In order to correct the above discrepancy, the Company increased the accumulated depreciation amounting to Rs. 27.47 Lakhs through
reserve and surplus account in the current financial year.

2. Company has incorrectly valued the inventory amounting to Rs. 286.69 Lakhs as on March 31,2024 by considering the cost including
Goods and Services Tax instead of only cost. Also the Semi-finished and finished goods were incorrectly valued at market price instead of
cost or market value, whichever is lower.

The company has corrected this discrepancy in current financial year by adjusting value of change in inventory and reserve and surplus.

32 Other Statutory Information

... The Company has not recorded any transaction with the companies that has been struck off from the registrar of companies
⁽ⁱ⁾ (ROC) during the period.

The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company
^{( )} for holding any Benami property.

(Hi) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial period.

(iv) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities

a) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

b) 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

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

The Company have not any such transaction which is not recorded in the books of accounts that has been surrendered or

(vi) disclosed as income during the period in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or
any other relevant provisions of the Income T ax Act, 1961.

(vii) The Company has implemented an automated system for preparing and maintaining the fixed assets register in the financial
year 2024-25, and noted that due to the incorrect estimate of life of assets and incorrect calculation, depreciation amounting
to Rs. 27.47 Lakhs has been under charged.

In order to correct the above discrepancy, the Company increased the accumulated depreciation amounting to Rs. 27.47
Lakhs through reserve and surplus account (As mentioned in Notes no. 4 to financial statements) in the current financial
year.

(viii) The Company has incorrectly valued the inventory amounting to Rs. 286.68 Lakhs as on March 31,2024 by considering the
cost including Goods and Services Tax instead of only cost. Also the Semi-finished and finished goods were incorrectly
valued at market price instead of cost or market value, whichever is lower.

The company has corrected this discrepancy in current financial year by adjusting value of change in inventory and reserve
and surplus (Refer Notes no. 4 to financial statement)

(vii) The Company have 2 product segment i.e. Metal powder and tungsten heavy alloy, therefore segment reporting is applicable
but except the revenue from operation the company has not maintained the data for the segment reporting, however from
the financial year 2025-26 the company have implemented the system for the maintaining the segment wise data of Profit
and loss, Assets, Liabilities and revenue.

33 Previous Year Comparatives

Previous year figures are re-grouped whereever necessary.

Summary of significant accounting policies 2

The accompanying notes 1 to 33 form an integral part of these financial statements.

As per our report of even date For and on behalf of the Board of Directors of

For CND & Associates Innomet Advanced Materials Limited

Chartered Accountants
(Firm Registration No. 030019N)

Sd/- Sd/- Sd/-

Rohit Dhingra Vinay Choudary Chilakapati Saritha Devi Chilakapati

(Partner) Managing Director Whole-Time Director &

M. No. 519740 DIN: 08444644 Chief Financial Officer

DIN:08432017

Place : Delhi Sd/-

Date: May 29, 2025 Aanchal Sethia

UDIN: 25519740BMIHYJ6428 Company Secretary

M. No. 58422