Note to 5.10: Fixed deposits with banks amounting to Rs. 193 Lakhs (PY ' 188.149 Lakhs) are kept with the bankers as margin monies towards Bank guarantees issued to suppliers, against term loan taken from SIDBI and the said fixed deposits cannot be utilised by the company till completion of the contracts entered with suppliers. Earmarked balances with banks are the amounts pertaining to unpaid dividend and these amounts can be utilised by the company only for paying unpaid dividends.

5.13 (A) Rights, Preferences and restrictions attached to equity shares

Equity shares have a par value of '10 per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts, in proportion of their shareholdings.

Note 5.14 (a) Refer Statement of changes in Equity for Movement in balances of reserves Note 5.14 (b) General Reserve

The General Reserve is created from time to time by appropriating profits from retained earnings. The general reserve is created by transfer from one component of equity to another and accordingly it is not reclassified to the Statement of profit and loss.

Note 5.14 (c) Retained Earnings

Retained earnings generally represents the undistributed profit/ amount of accumulated earnings of the company. Note 5.14 (d) Foreign Currency Translation Reserve relates to exchange differences for investment in Wholly Owned Foreign Subsidiaries as the same are classified as non-integral foreign operations.

Note 5.14 (e) Other Comprehensive Income

Other Comprehensive Income (OCI) represents the balance in equity for items to be accounted under OCI and comprises of: items that will not be reclassified to profit and loss

a. The Company has made an irrevocable election to present the subsequent fair value changes of investments in OCI. This reserve represents the cumulative gains and losses arising on the revaluation of equity instruments measured at fair value including tax effects. The company transfers restated fair value amounts from this reserve to retained earnings when the relevant financial instruments are disposed.

b. The actuarial gains and losses along with tax effects arising on defined benefit obligations have been recognized in OCI. Note 5.14 (f): In respect of the year ended 31^st March, 2026, the Board of Directors has proposed a dividend of '4/- per equity share, subject to approval by the shareholders at the ensuing Annual General Meeting after which dividend would be accounted and paid out of the retained earnings available for distribution in accordance with the provisions of the Act and for the year ended 31^st March, 2025, the Company paid dividend of '3/- per equity share as approved by the Shareholders in its respective Annual General Meeting.

Note 5.15A Security for term loans from PNB:

a) Exclusive charge on inventories, Book debts of the company, both present and future of the Company

b) Exclusive charge on plant and machinery equipment of the company

c) Unconditional and irrevocable corporate guarantee given by M/s Anar Enterprises Private Limited.

Term loan from SIDBI secured by the Solar Plant of 1.1 Megawatt being set-up at Polepalli, Anakapalle District. Repayment terms:

Loans From Punjab National Bank (PNB)

Term loan-I is repayable in 17 equal monthly instalments of '49.78 Lakhs and Term

Loan-II is repayable in 52 equal monthly instalments of '14.94 Lakhs from December, 2023 to July 2027 & '15.93 Lakhs from August, 2027 to March 2028

Term Loan-III is repayable in 72 equal monthly installments of '11.52 crores from January, 2026 to Dec., 2031. Term Loan-IV is repayable in 72 equal monthly installments of '20.22 Crores from July, 2026 to June, 2032. Loan from SIDBI: Loan from SIDBI is repayable in 54 equated monthly installments of '8.95 lakhs commencing from 10^th November 2025.

Note 5.15B Security for Vehicle loans: Loan taken for purchase of vehicles are exclusive charge on the respective vehicles purchased.

Repayment terms: Vehicles loans from ICICI bank are repayable in 40 monthly instalments commencing from April, 2023 with monthly EMIs of '1.64 Lakhs. Vehicle loan from NBFC are repayable in 48 monthly instalments commencing from September, 2023 with monthly EMI of '2.05 Lakhs. Vehicle loan from PNB are repayable in 60 monthly instalments commencing from December, 2025 with monthly EMI of '0.64 Lakhs. Another vehicle loan from PNB are repayable in 84 monthly instalments commencing from March, 2026 with monthly EMI of '2.02 Lakhs.

b) Defined Benefit Plans: General Description of the Post Employment defined Benefit Plans;

i) Gratuity:

The company provides for gratuity to the employees as per Payment of Gratuity Act,1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity is payable on retirement/resignation The gratuity plan is a Unfunded plan and the company provides liability in the books of account based on actuarial valuation performed by an independent actuary at each balance sheet date using projected unit credit method.

ii) Compensated Absence:

The Company has a policy on compensated absences which are both accumulating and non-accumulating in nature. The expected cost of accumulating compensated absences is determined by actuarial valuation performed by an independent actuary at each balance sheet date using projected unit credit method on the additional amount expected to be paid/availed as a result of the unused entitlement that has accumulated at the balance sheet date. Expense on non-accumulating compensated absences is recognized in the period in which the absences occur. Encashment of accumulated earned leave, subject to maximum permissible limits as per the terms of appointment, will be paid to the employee on separation.

Note 5.28 (G) Significant estimates : Sensitivity analysis

The sensitivity analysis is based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (projected unit credit method) has been applied as when calculating the defined benefit obligation recognized within the Balance Sheet.

"On November 21, 2025, the Government of India notified provisions of the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020 and the Occupational Safety, Health and Working Conditions Code, 2020 ('Labor Codes') which consolidate twenty-nine existing labor laws into a unified framework governing employee benefits during employment and post-employment.

“The Labor Codes, amongs to their things introduces changes, including a uniform definition of wages and enhanced benefits relating to leave. The Company has assessed the financial implications of these changes which has resulted in increase in gratuity and leave encashment liabilities by '34.62 lakhs arising out of past service cost in the Statement of Profit and Loss for the year ended March 31, 2026. The Company continues to monitor the developments pertaining to Labor Codes and will evaluate impact if any on the measurement of the employee benefits liability."

Basic earnings per share is computed by dividing the net profit for the period attributable to the equity shareholders 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 and for all periods presented is adjusted for events, such as bonus shares, other than the conversion of potential equity shares that have changed the number of equity shares outstanding, without a corresponding change in resources.

For the purpose of calculating diluted earnings per share, the net profit for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects all dilutive potential equity shares.

Operating segments are identified and reported taking into account the different risk and return, organization structure and internal reporting system. Segmental reporting as per Ind AS-108 as notified by MCA is not applicable, as the Company is engaged in manufacture of a single line of product.

Note 5.36 Impairment of Assets

The company assesses, at each reporting date, whether there is an indication that an asset may have to be impaired. If any indication exists, or when annual impairment testing for an asset is required, the company estimates the asset's recoverable amount. An asset's recoverable amount is the higher of its fair value less costs of disposal and value in use. Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

According to an internal technical assessment carried out by the Company, there is no impairment in the carrying cost of cash generating units of the Company in terms of Indian Accounting Standard 36 'Impairment of Assets'

MCA notified amendments to Ind AS 21 - The Effects of Changes in Foreign Exchange Rates in May 2025,

applicable w.e.f. April 1, 2025.The Company has reviewed the amendment and based on its evaluation has

determined that it does not have any significant impact in itsfinancial statements.

In August 2025, MCA notified the following amendments to:

1. Ind AS 1, Presentation of Financial Statements, applicable w.e.f. April 1, 2025 - The amendments relate to classification of liabilities as current or non-current and non-current liabilities with covenants. The amendments clarify that the right to defer settlement of a liability for at least twelve months after the reporting period must exist at the reporting date and must have substance. The amendments also provide guidance on classification of liabilities subject to covenants required to be complied with after the reporting date. The Company does not expect these amendments to have any material impact on classification of its current and non-current liabilities. Certain consequential amendments relating to covenant breaches and lender waivers are applicable for annual reporting periods beginning on or after April 1, 2026.

2. Ind AS 7, Statement of Cash Flows and Ind AS 107, Financial Instruments: Disclosures, applicable w.e.f. April 1, 2025 - The amendment in Ind AS 7 requires to inform users of financial statements of the existence of supplier finance arrangements and explain the nature of the arrangements, the carrying amount of liabilities and the range of payment due dates. Ind AS 107 has been amended to add supplier finance arrangements as a factor that may cause concentration of liquidity risk. The Company has reviewed the amendment and based on its evaluation has determined that it does not have any significant impact in its financial statements.

3. Ind AS 12, International Tax Reform - Pillar Two Model Rules applicable immediately - The amendments provide a temporary mandatory relief from deferred tax accounting for top-up tax and disclose that they have applied the relief. This relief is immediate and applies retrospectively, it does not have any significant impact in its financial statements.

Note 5.42: Other additional Regulatory information

a) Company has no transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

b) No charges or satisfaction is yet to be registered with Registrar of Companies beyond the statutory period.

c) There is no Scheme of Arrangements that has been approved in terms of sections 230 to 237 of the Companies Act, 2013.

d) The company has not granted any Loans or advances in the nature of loans to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013,) either severally or jointly with any other person that are repayable on demand or without specifying any terms or period of repayment.

e) There are no transactions that are not recorded in the books of account and have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

f) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

Note 5.43:

A) A) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries)

B) The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

Note No. 6.1 Capital Management

A) The primary objective of the company's capital management is to ensure that it maintains a healthy capital ratio in order to support its business and maximize shareholder's value. The company's objective when managing capital is to safeguard their ability to continue as a going concern so that they can continue to provide returns for shareholders and benefits for other stake holders. The company is focused on keeping strong total equity base to ensure independence, security, as well as a high financial flexibility for potential future borrowings, if required without where the risk profile of the company.

The fair values of the financial assets and liabilities are included at the amount that would be received on sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

A) The following methods and assumptions were used to estimate the fair values

The fair value of cash and cash equivalents, trade receivables and payables, financial liabilities and assets approximate their carrying amount largely due to the short-term nature of these instruments. The management considers that the carrying amounts of financial assets and financial liabilities recognized at nominal cost/ amortized cost in the financial statements approximate their fair values. The investments are designated and recognized through Other Comprehensive Income and the fair value is measured at the quoted market value

B) Fair value hierarchy

Level 1: Level 1 hierarchy includes inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date Level 2: Inputs other than quoted prices included within level 1 that are observable either directly or indirectly for the asset or liability.

Level 3: Inputs for the asset or liability which are not based on observable market data (unobservable inputs).

Note No-6.4 Financial risk management framework

A) The Company's Board of Directors has overall responsibility for the establishment and oversight of the Company's risk management framework. The Company's risk management policies are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company's activities. The Board of Directors monitors the compliance with the Company's risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company.

The risk management framework aims at,

i) Improve financial risk awareness and risk transparency

ii) Identify, control and monitor key risks

iii) Identify risk accumulations

iv) Provide management with reliable information on the Company's risk situation

v) Improve financial returns

B) The company's activities expose it to credit risk, liquidity risk and market risk. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk.

This note explains the sources of company's risk from financial instruments and the method adopted to overcome the risk:

a) Credit risk:

i) Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables), from cash and cash equivalents, deposits with banks. The management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis.

ii) Financial assets that are neither past due nor impaired

Cash and cash equivalents, deposits with banks, security deposits, investments in securities & mutual funds are neither past due nor impaired. Cash and cash equivalents, deposits are held with banks which are reputed and credit worthy banking institutions. Hence the expected credit loss is negligible. Investments in investments in securities & mutual funds are actively traded in the stock markets and and there is no collateral held against these because the counterparties are entities with high credit ratings assigned by the various credit rating agencies. Hence the expected credit loss is negligible.

iii) Financial assets that are past due but not impaired

Credit risk arising from trade receivables is managed in accordance with the Company's established policy, procedures and control relating to customer credit risk management. The average credit period on sales of products is less than 30 days. All trade receivables are reviewed and assessed for default on a quarterly basis. For trade receivables, as a practical expedient, the Company computes credit loss allowance based on a provision matrix. The provision matrix is prepared based on historically observed default rates over the expected life of trade receivables and is adjusted for forward-looking estimates. The provision matrix at the end of the reporting period is as follows:

b) Liquidity risk

i) 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 Company's objective is to maintain optimum level of liquidity to meet its cash and collateral requirements at all times. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit line to meet obligations. Due to the dynamic nature of underlying business, company maintains flexibility in funding by maintaining availability under committed credit lines.

i) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure/liability will fluctuate because of changes in foreign exchange rates. Since Company's operations are being carried out in India and since all the material balances are denominated in its functional currency and there are no foreign currency borrowings, liabilities, the Company does not carry any material exposure to currency fluctuation risk. The Company's exposure to foreign currencies is immaterial and hence no sensitivity analysis is presented.

ii) Commercial risk

The commercial risk is the risk due to the change in market prices of raw materials and finished goods and it is measured though sensitivity analysis by taking variance of 5%

d) Market risk-Security investments prices

The price risk arises from the investments held by the company which has been classified in the financial statements as financial assets through other comprehensive income and the same are held for receiving contractual cash flows and for sale. The company has adopted a policy of diversification of portfolio for mitigating the price risk.

ii) Equity Price Sensitivity Analysis:

The sensitivity analysis below has been determined based on the exposure to equity price risks for Investments in equity shares (including investments in equity oriented mutual funds) of companies.

If equity prices had been 5% higher/lower, profit for the year ended 31^st March, 2026 would increase/ decrease by '200.27 Lakhs (for the year ended 31^st March, 2025: increase / decrease by '145.40 Lakhs) as a result of the change in fair value of equity investments which are designated as FVTOCI.