p) Provisions and Contingent Liabilities

Provisions are recognised when the Company has a
present legal or constructive obligation as a result of
past events, 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. Where there
are a number of similar obligations, the likelihood that
an outflow will be required in settlement is determined
by considering the class of obligations as a whole. A
provision is recognised even if the likelihood of an
outflow with respect to any one item included in the
same class of obligations may be small.

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 provision due to the passage of time is recognised
as interest expense.

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 recognised
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 recognised because it cannot
be measured reliably. The Company does not
recognise a contingent liability but discloses its
existence in the Standalone Financial Statements.

q) Employee Benefits

(i) Short-Term Obligations

Liabilities for wages and salaries, including non¬
monetary benefits that are expected to be settled
wholly within twelve months after the end of the
period in which the employees render the related
service are recognised in respect of employees'
services up to the end of the reporting period and
are measured at the amounts expected to be paid
when the liabilities are settled. The liabilities are
presented as current employee benefit obligations
in the Balance Sheet.

(ii) Other Long-Term Employee Benefit Obligations

The liabilities for compensated absences are not
expected to be settled wholly within twelve months
after the end of the period in which the employees
render the related service. These obligations are
therefore measured as the present value of
expected future payments to be made in respect
of services provided by employees up to the end
of the reporting period using the projected unit
credit method less fair value of plan assets as at
Balance Sheet date. The benefits are discounted
using the market yields at the end of the reporting
period that have terms approximating to the terms
of the related obligation. Re-measurements as a
result of experience adjustments and changes in
actuarial assumptions are recognised in profit and

loss.

The obligations are presented as current liabilities
in the Balance Sheet as the entity does not have
an unconditional right to defer settlement for at
least twelve months after the reporting period,
regardless of when the actual settlement is
expected to occur.

(iii) Post-Employment Obligations

The Company operates the following post¬
employment schemes:

(a) Defined benefit plan (Gratuity)

(b) Defined contribution plans (Provident Fund).

(iv) Defined Benefit Plan (Gratuity)

The Company contributes to the Gratuity Fund
managed by the Life Insurance Corporation of India
under its New Company Gratuity Cash
Accumulation Plan.

The liability or asset recognised in the Balance
Sheet in respect of defined benefit gratuity plan is
the present value of the defined benefit obligation
at the end of the reporting period less the fair value
of plan assets. The defined benefit obligation is
calculated annually by actuaries using the
projected unit credit method.

The present value of the defined benefit obligation
is determined by discounting the estimated future
cash outflows by reference to market yields at the
end of the reporting period on government bonds
that have terms approximating to the terms of the
related obligation.

The net interest cost is calculated by applying the
discount rate to the net balance of the defined
benefit obligation and the fair value of plan assets.
This cost is included in employee benefit expense
in the Statement of Profit and Loss.

Re-measurement gains and losses arising from
experience adjustments and changes in actuarial
assumptions are recognised in the period in
which they occur, directly in other comprehensive
income. They are included in retained earnings in
the Statement of Changes in Equity and in the
Balance Sheet.

Changes in the present value of the defined benefit
obligation resulting from plan amendments or
curtailments are recognised immediately in profit
and loss as past service cost.

(v) Defined Contribution Plans

The Company pays provident fund contributions
to publicly administered provident funds as per
local regulations. The Company has no further
payment obligations once the contributions have
been paid. The contributions are accounted for as
defined contribution plans and the contributions
are recognised as employee benefit expense
when they are due. Prepaid contributions are
recognised as an asset to the extent that a cash

refund or a reduction in the future payments is
available.

r) Contributed Equity

Equity shares are classified as equity.

Incremental costs directly attributable to the issue of
new shares or options are shown in equity as a
deduction, net of tax, from the proceeds.

s) Dividends

Provision is made for the amount of any dividend
declared, being appropriately authorised and no longer
at the discretion of the entity, on or before the end of the
reporting period but not distributed at the end of the
reporting period.

t) Earnings Per Share

Basic earnings per share are calculated by dividing
the profit or loss for the year attributable to equity to the
owners of the Company by the weighted average
number of equity shares outstanding during the year.

The Company does not have any dilutive potential
equity shares.

u) Rounding of Amounts

All amounts disclosed in the Standalone Financial
Statements and notes have been rounded off to the
nearest lakhs upto two decimal places as per the
requirement of Schedule III, unless otherwise stated.

v) New and Amended Standards Adopted by the
Company

The Ministry of Corporate Affairs notified new standards
or amendment to existing standards under Companies
(Indian Accounting Standards) Rules as issued from
time to time.

The Company applied following amendments for the
first time during the current year which are effective
from 1 April 2025:

Lack of exchangeability - Amendments to Ind AS 21

MCA via notification dated 7 May 2025, announced
amendments to Ind AS 21, The Effects of Changes in
Foreign Exchange Rates, to specify how an entity
should assess whether a currency is exchangeable
and how it should determine a spot exchange rate
when exchangeability is lacking. The amendments
also require disclosure of information that enables
users of its financial statements to understand how
the currency not being exchangeable into the other
currency affects, or is expected to affect, the entity's
financial performance, financial position and cash
flows.

The amendments do not have a material impact on
the company's standalone financial statements.

Classification of Liabilities as Current or Non-current
and Non-current Liabilities with Covenants -
Amendments to Ind AS 1

MCA via notification dated 13 August 2025 announced
amendments to Ind AS 1, Presentation of Financial
Statements, which elaborate on guidance set out in
Ind AS 1 by:

• clarifying that the right to defer settlement of a
liability for at least 12 months after the reporting
period;

a) must have substance, and b) must exist at the
end of the reporting period;

• stating that management's expectations around
whether the settlement of a liability would be
deferred or not, does not impact the classification
of the liability;

• including requirements for liabilities that can be
settled using an entity's own instruments; and

• stating that at the reporting date, the entity does
not consider covenants that will need to be
complied with in the future when considering the
classification of the debt as current or non-current

In addition, an entity is required to disclose when a
liability arising from a loan agreement is classified as
non-current and the entity's right to defer settlement is
contingent on compliance with future covenants within
twelve months.

The amendments have resulted in additional
disclosures but have not had an impact on the
classification of the company's liabilities as at the
balance sheet date.

Supplier Finance Arrangements - Amendments to
Ind As 7 and Ind AS 107

MCA via notification dated 13 August 2025 announced
amendments to Ind AS 7, Statement of Cash Flows
and Ind AS 107, Financial Instruments: Disclosures
which introduced disclosure requirements with the
objective to enable users of financial statements to
assess how supplier finance arrangements affect an
entity's liabilities, cashflows and exposure to liquidity
risk.

As a result of implementing the amendments, the
company has provided additional disclosures about
its supplier finance arrangement.

International Tax Reform - Pillar Two Model Rules -
Amendments to Ind AS 12

MCA via notification dated 13 August 2025 announced
amendments to Ind AS 12, Income Taxes, which
includes:

• a temporary exception to the recognition and
disclosure of deferred taxes arising from the
implementation of the Pillar Two model rules; and

• additional disclosure requirements targeted at a
reporting entity's exposure to income taxes in
periods in which the Pillar Two Model legislation
is enacted or substantively enacted but not yet in
effect.

The amendments do not have a material impact on
the Company's Standalone Financial Statements.

Note 2:(A) Critical Estimates and Judgements

The preparation of Standalone Financial Statements
requires the use of accounting estimates which, by
definition, will seldom equal the actual results.
Management also needs to exercise judgement in applying

the Company's accounting policies. This note provides an
overview of the areas that involved a higher degree of
judgement or complexity, and of items which are more likely
to be materially adjusted due to estimates and
assumptions turning out to be different than those originally
assessed. Detailed information about each of these
estimates and judgements is included in relevant notes
together with information about the basis of calculation for
each affected line item in the Standalone Financial
Statements.

The areas involving critical estimates are:

• Estimates of defined benefit obligation - Note 23

• Estimate of useful life of property, plant and equipment
- Note 3 (a)

• Impairment assessment of non-financial asset -Note
46

The areas involving criticaljudgement are:

• Impairment of trade receivables -Note 43 (A)

• Measurement of contingent liabilities -Note 36

• Determine the amount of deferred tax- Note 18

Estimation and judgements are continuously evaluated.
They are based on historical experience and other factors
including expectation of future events that may have a
financial impact on the Company and that are believed to
be reasonable under the circumstances.

Note:-2 (B) Amendment to Indian Accounting Standards
(Ind AS) issued but not yet effective

The Ministry of Corporate Affairs ("MCA") notifies new
standard or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as
amended from time to time. During the year ended 31 March
2026, MCA has notified following new standards or
amendments to the existing standards applicable to the
Company:

Classification of Liabilities as Current or Non-current and
Non-current Liabilities with Covenants - Amendments to
Ind AS 1:

Paragraph 74 of Ind AS 1 currently effective for the year
ended 31 March 2026 requires the entity not to classify the
liability as current, if there is a breach of a material covenant
of a long-term loan arrangement on or before the end of the
reporting period with the effect that the liability becomes
payable on demand on the reporting date, however, the
lender agreed, after the reporting period and before the
approval of the financial statements for issue, not to
demand payment as a consequence of the breach.

MCA vide notification dated 13 August 2025, has introduced
amendment under Paragraph 74 of Ind AS 1 which requires
the entity to classify the liability as current under the
aforementioned situation because, at the end of the
reporting period, it does not have the right to defer its
settlement for at least twelve months after that date. Such
amendment has been made effective for annual reporting
periods beginning on or after 01 April 2026 retrospectively
in accordance with Ind AS 8.

This amendment is not expected to have a material impact
on the Company's Standalone Financial Statements.

3(b) Leases

This note provides information for leases where the Company is a lessee. The Company leases various premises,
where the rental contracts are generally short term except in case of lease hold land where it is up to 99 years.

Land lease

Leasehold land represents land taken on lease under long term multi-decade lease term, capitalised at the present
value of the aggregate future minimum lease payments (which include annual lease rentals in addition to the initial
payment made at the inception of the lease). There are no contingent payments.

(i) Amounts recognised in Standalone Balance Sheet

The Balance Sheet shows the following amounts relating to lease.

Note:

(i) The carrying amount of trade receivables approximates their fair value is included in note 42.

(ii) The Company's exposure to credit and currency risks, and impairment allowances related to trade receivables is
disclosed in note 43.

(iii) The Company provide 0-180 days credit period for trade receivables with no significant financing component.

(iv) Includes amounts due, in the ordinary course of business, from Companies in which directors of the Company are
also directors, (refer note 41)

(v) Presumption that there have been significant increases in credit risk since initial recognition when financial assets
are more than 30 days past due, has been rebutted based on the past experience of realisation of the debtors.

(b) Rights, preferences and restrictions attached to shares

Equity shares: The Company has one class of equity shares having a par value of Rs. 5.00 per share. Each shareholder
is eligible for one vote per share held. The dividend proposed by the board of directors is subject to the approval of the
shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the
equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential
amounts, in proportion to their share holding.

Notes:

(i) Liquid investments: Liquid investments represent current quoted and unquoted investments and non-current quoted
investment , being the Company's financial assets and fixed deposits held by the Company.

(ii) The Company has used the borrowings from banks for the specific purpose for which it was taken at the balance
sheet date.

(iii) The Company has sanctioned borrowing limits in relation to which the quarterly returns of current assets filed by the
Company with banks are in agreement with the books of accounts for the respective periods.

(iv) The information about the Company's exposure to interest rate, foreign currency and liquidity risks is included in note
43.

(v) The Company has complied with the debt covenants as per the terms of borrowing facilities throughout the reporting
period and there have been no default in repayment of interest and loans in the current year.

The Company contributes to the compensated absences fund managed by the Life Insurance Corporation of India
under its Group Leave Encashment Scheme. The liability for compensated absences is determined on the basis of
independent actuarial valuation done at year end. plan assets are measured at fair value as at balance sheet date.

(B) Defined contribution plans

The Company has defined contribution plan for its employees' benefits comprising Provident Fund & Employees' State
Insurance Fund. The Company and eligible employees make monthly contribution to the above mentioned funds at a
specified percentage of the covered employees salary. The obligation of the Company is limited to the amount contributed
and it has no further contractual or any constructive obligation. The expense recognised during the year towards
provident fund is Rs. 111.76 lakhs (31 March 2025: Rs. 108.47 lakhs). The expense recognised during the year towards
Employees' State Insurance is Rs. 3.45 lakhs (31 March 2025: Rs.5.36 lakhs).

(C) Post-employment obligations
Defined benefit plans- Gratuity

The Company provides for gratuity for employees in India as per the 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 payable on retirement/
termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied
for the number of years of service. The gratuity plan is a funded plan and the Company makes contributions to fund
managed by the Life Insurance Corporation of India.

(vi) Risk exposure

Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are
detailed below:

Interest rate risk: The plan exposes the Company to the risk of fall in the interest rates. A fall in the interest rates will
result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in the value of
the liability (as shown in financial statements)

Salary escalation risk: The present value of the defined benefit plan is calculated with assumption of salary increase
rate of plan participants in future. Deviation in the rate of increase of salary in future for plan participants from the rate of
increase in salary used to determine the present value of obligation will have a bearing on the plan's liability.

Demographic risk: The Company has used certain mortality and attrition assumption in valuation of the liability. The
Company is exposed to the risk of the actual experience turning out to be worse.

Regulatory risk: Gratuity benefit is paid in accordance with the requirement of the Payment of Gratuity Act, 1972 (as
amended from time to time). There is a risk of change in regulation requiring higher gratuity payouts.

Liquidity risk : This is the risk that the Company is not able to meet the short-term gratuity payouts. This may arise due
to non availability of enough cash / cash equivalent to meet the liabilities or holding of illiquid assets not being sold in
time.

Asset liability mismatching or market risk: The duration of the liability is longer compared to duration of assets,
exposing the Company to market risk for volatilities/ fall in interest rate.

Investment risk : The probability or likelihood of occurrence of losses relative to the expected return on any particular
investment.

(vii) Defined benefit liability

The Company's best estimate of contribution towards post-employment benefit plans for the year ended 31 March 2027
are Rs. 977.04 lakhs (year ended 31 March 2026 are Rs.450.38 lakhs).

The weighted average duration of the defined benefit obligation is 6 years (31 March 2025: 6 years). The expected
maturity analysis of undiscounted gratuity for on-roll employees are as follows:

Note: Against demand as mentioned above, the Company has filed appeals before various tax authorities. Based on
management assessment and upon consideration of advice from the independent legal counsels, the management
believes that the Company has reasonable chances of succeeding before the tax authorities and does not foresee any
material liability. Pending the final decision on this matter, no adjustment has been made in the Standalone Financial
Statements.It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above
pending resolution of the respective proceedings.

Note:

Particulars of investments made as required by clause (4) of Section 186 of the Companies Act, 2013 and as
required by Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)
Regulations, 2015 has been given under the investment schedule. Refer note 4.

Terms and conditions

The transactions with related parties are made in the ordinary business and on terms equivalent to those that
prevail in arm's length transactions. Outstanding balances at the year-end are unsecured and settlement
occurs in cash. This assessment is undertaken each financial year through examining the financial position of
the related party and the market in which the related party operates.

(i) Fair value hierarchy

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity
instruments, traded debentures and mutual funds that have quoted price. The fair value of all equity instruments
(including debentures) which are traded in the stock exchanges is valued using the closing price as at the reporting
period. The mutual funds are valued using the closing NAV.

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 all significant inputs required to fair value an instrument are observable, the instrument is included in
level 2. There are no instruments categorised in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included
in level 3. There are no instruments categorised in level 3.

There are no transfers between levels 1 and 2 during the year.

The Company's policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of
the reporting period.

(ii) Fair value of financial assets and liabilities measured at amortised cost

The carrying amounts of trade receivables, trade payables, cash and cash equivalents, other bank balances, other
financial assets, other financial liabilities, short term borrowings, lease liabilities are considered to be the same as
their fair values, due to their short-term nature.

Majorly the security deposits and fixed deposits are redeemable on demand and bonds are redeemable at par
hence the fair values of security deposits and bank deposits are approximately equivalent to the carrying amount.

The non-current borrowings and lease liabilities are carried at amortised cost. There is no material difference
between carrying amount and fair value of non-current borrowings as at 31 March 2026 and 31 March 2025.

Other note:

The investment in equity shares of subsidiaries are measured at cost. Refer note 4 for further details.

43. Financial risk management

The Company's activities expose it to market risk, liquidity risk and credit risk.

The Company's board of directors has overall responsibility for the establishment and oversight of the Company's
risk management framework.

(A) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails
to meet its contractual obligations, and arises principally from the Company's receivables from customers. The
carrying amounts of financial assets represent the maximum credit risk exposure.

A default on a financial asset is when the counterparty fails to make contractual payments as per agreed terms.
This definition of default is determined by considering the business environment in which entity operates and
other macro-economic factors.

Assets are written off when there is no reasonable expectation of recovery.

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 year. 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. It considers available
reasonable and supportive forwarding-looking information.

Trade and other receivables

Credit risk refers to the risk of default on its obligation by the counter party resulting in financial loss. The
maximum exposure to the credit risk at the reporting date is primarily from trade receivable amounting to
Rs.29,986.12 lakhs, Rs. 24,605.00 lakhs as at 31 March 2026 and 31 March 2025 , respectively. The Company's
exposure to credit risk is influenced mainly by the individual characteristics of each customer. The management
also considers the factors that may influence the credit risk of its customer base, including the default risk of the
industry and country in which customers operate. The Company has a credit risk management policy in place
to limit credit losses due to non-performance of financial counterparties and customers. The Company monitors

its exposure to credit risk on an ongoing basis at various levels. Outstanding customer receivables are regularly
monitored. The Company closely monitors the acceptable financial counterparty credit ratings and credit limits
and revise where required in line with the market circumstances.

Due to the geographical spread and the diversity of the Company's customers, the Company is not subject to
any significant concentration of credit risks at balance sheet date.

On account of adoption of Ind AS 109, the Company uses a simplified approach (lifetime expected credit loss
model) for the purpose of computation of expected credit loss for trade receivables.

The Company calculates expected credit loss on its trade receivables using 'allowance matrix' and also takes
into account 'delay risk' on trade receivables.

Significant estimates: The impairment provisions for financial assets disclosed above are based on
assumptions about risk of default and expected loss rates. The Company uses judgment in making these
assumptions and selecting the inputs to the impairment calculation, based on the Company's past history,
existing market conditions as well as forward looking estimates at the end of each reporting year. For trade
receivables only, the Company applies the simplified approach permitted by Ind AS 109, "Financial Instruments",
which requires expected lifetime losses to be recognised from initial recognition of the receivables.

Management judgment is required for assessing the recoverability of trade receivables and the valuation of the
allowances for impairment of trade receivables. The Company makes impairment allowance for trade receivables
based on an assessment of the recoverability of trade receivables. Allowances are applied to trade receivables
where events or changes in circumstances indicate that the balances may not be collectible. The impairment
allowance is estimated by management based on historical experience and current economic environment,
The Company assesses the expected credit losses by calibrating historical experience with forward-looking
estimates. This may include information regarding the industry in which debtors are operating, historical and
post year-end payment records, as well as creditworthiness of debtors.

Cash & cash equivalents and bank deposits

Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly rated
banks and diversifying bank deposits accounts in different banks across the country.

Other financial assets measured at amortised cost (current & non-current)

Other financial assets measured at amortised cost includes security deposits, investment in subsidiaries and
other investments. Credit risk related to these other financial assets is managed by monitoring the recoverability
of such amounts continuously.

(B) Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the
availability of funding to meet obligations when due. Management monitors rolling forecasts of the Company's
liquidity position and cash and cash equivalents on the basis of expected cash flows.

Maturities of financial liabilities

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts
are gross and undiscounted, and include estimated interest payments and exclude the impact of netting
agreements.

(C) Market risk

(i) Foreign currency risk

The Company operates internationally and is exposed to foreign exchange risk arising from foreign currency
transactions, primarily with respect to the USD, GBP, ZAR and EUR. Foreign exchange risk arises from future
commercial transactions and recognised assets and liabilities denominated in a currency that is not the
Company's functional currency (INR). The Company maintains EEFC bank account for export sales realisation
which is generally used for repayment of import obligations (arising out of purchase of raw materials, services
and capital goods), therefore, the risk is not a material risk to the Company.

(iii) Price risk

The Company's exposure to price risk arises from investments held by the Company and classified in the Balance
Sheet as fair value through Profit and Loss. To manage its price risk arising from investments, the Company diversifies
its portfolio.

Sensitivity

The table below summarises the impact of increases/decreases of the Company's profit for the year and other equity.
The analysis is based on the assumption that the fair value of investments had increased by 5% decreased by 5% with
all other variables held constant.

(iv) Commodity price risk

Commodity price risk arises due to fluctuation in prices of key raw materials. The Company has a risk management
framework aimed at prudently managing the risk arising from the volatility in commodity prices and freight costs. The
Company's commodity risk is managed centrally through well-established control processes. Further, selling price of
finished goods are adjusted due to fluctuation in market prices of key raw materials and the Company expects that the
net impact of such fluctuation would not be material.

44. Events occurring after the reporting year

The Board of Directors of the Company has recommended final dividend of Rs.6.00 (i.e.120%) per Equity Share of
Rs.5.00 each aggregating to Rs.2,607.16 lakhs, which is subject to the approval of shareholders in the ensuing
Annual General Meeting.

45. Capital management

The Company's objectives when managing capital are to:

• safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders
and benefits for other stakeholders, and

• maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt. No changes were
made in the objectives, policies or processes for managing capital during the year ended 31 March 2026 and 31
March 2025.

The Company has complied with the debt covenants as per the terms of borrowing facilities throughout the reporting
year.

46. Impairment of non-financial assets

In accordance with Ind AS 36 "Impairment of Assets", the Company has identified Gwalior plant (the 'Plant') as a
separate cash generating unit (CGU) for the purpose of impairment review. Management periodically performs an
impairment assessment of the CGUs basis internal and external indicators, in order to determine whether the
recoverable value is below the carrying amount as at 31 March 2026.

The Company has considered its property, plant and equipment, inventory, trade receivables and other attributable
assets and liabilities of the Gwalior Plant as a single CGU. As at 31 March 2026, carrying value of CGU is Rs.
10,272.36 lakhs.

The Plant has incurred operating losses during the current and previous years and the economic performance of
the Plant, has been significantly lower than the budgets. Therefore, basis these indicators, the Plant has been
assessed for recoverability as at 31 March 2026 as to whether, the carrying value exceeds the recoverable value of
the Plant. The Company has assessed the recoverability (fair value) of the property, plant & equipment ('PPE')
having carrying values of Rs. 7,049.10 lakhs for CGU as at 31 March 2026 with the help of an external valuation
expert using the reproduction cost method (indexation method) under cost approach for PPE (other than land and
building) and sales comparison method under market approach for land and building as per Ind AS 36. Remaining
carrying values of CGU of Rs. 3,223.26 lakhs, majorly includes Inventory of Rs. 1,391.35 lakhs and GST input of Rs.
953.01 lakhs are recoverable with no impairment risk.

Such valuation method requires management to make significant estimates and assumptions related to selection
of the discount rates, estimated future life and market values of property to be considered for impairment testing as
per Ind AS 36. "

Based on above, recoverable value (fair value less cost of disposal) calculated as at 31 March 2026 is Rs. 10,922.34
lakhs.

Key assumptions used in determining the recoverable value are:

(a) Discount rate

(b) Estimated future life

(c) Market values of property

If we apply sensitivity on discount rate and market values, the recoverable value will still exceed the carrying value of
the CGU. Hence, no impairment required to be recognized.

47. Note on audit trail

The Ministry of Corporate Affairs (MCA) has prescribed a 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 audit trail
(edit log) facility and the same was enabled at the application level. During the year ended 31 March 2026, the
Company has not enabled the feature of recording audit trail (edit log) at the database level for the said accounting
software to log any direct data changes due to high consume storage space on the disk and can impact database
performance significantly.

49 Additional regulatory information required by schedule III of Companies Act, 2013

(i) Details of benami property:

No proceedings have been initiated or are pending against the Company for holding any benami property
under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

(ii) Utilisation of borrowed funds and share premium:

(A) The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or
any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities
(intermediaries) with the understanding (whether recorded in writing or otherwise) that the intermediary
shall:

(a) 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

(b) Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

(B) The Company has not received any funds from any person(s) or entity(ies), including foreign entities
(funding party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) 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

(b) Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

(iii) Compliance with approved scheme(s) of arrangements:

No scheme of arrangement has been approved by the Competent Authority in terms of Sections 230 to 237 of
the Companies Act, 2013, hence, this is not applicable.

(iv) Undisclosed income:

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

(v) Details of crypto currency or virtual currency:

The Company has not traded or invested in crypto currency or virtual currency during the current or previous
year.

(vi) Valuation of property, plant and equipment and intangible assets:

As the Company has chosen cost model for its property, plant and equipment (including right-of-use assets)
and intangible assets, the question of revaluation does not arise.

(vii) Loans or advances to specified persons:

The Company has not granted any loans or advances in the nature of loans to promoters, directors, KMPs or the
related parties (as defined under Companies Act, 2013,) either severally or jointly with any other person.

(viii) Borrowings secured against current assets:

The Company had sanctioned borrowings limits as disclosed in note 16. The quarterly returns/ statements of
current assets filed by the Company with the bank were in agreement with the books of account for the year
ended 31 March 2026.

(ix) Willful defaulter:

The Company has not been declared willful defaulter by any bank or financial institution or government or any
government authority.

(x) Transaction with struck-off Companies:

The Company has not entered into any transaction with the struck off Companies.

(xi) Registration of charges or satisfaction with registrar of Companies:

There are no charges or satisfaction yet to be registered with Registrar of Companies beyond the statutory
period.

(xii) Compliance with number of layers of Companies:

The Company complies with the number of layers prescribed under clause (87) of Section 2 of the Act read with
Companies (Restriction on number of Layers) Rules, 2017.

(xiii) Utilisation of borrowings availed from banks and financial institutions:

The borrowings obtained by the Company have been utilised for the purpose for which the same was obtained.

50. Per transfer pricing legislation under section 92-92F of the Income-Tax Act 1961, the Company is required to use
certain specific methods in computing arm's length price of international transactions with associated enterprises
and maintains adequate documentation in this respect. The legislations require that such information and
documentation to be contemporaneous in nature. The Company has appointed independent consultants for
conducting the Transfer Pricing Study to determine whether the transactions with associated enterprises undertake
during the financial year are on an "arm's length basis". The Company is in the process of conducting a transfer
pricing study for the current financial year and expects such records to be in existence latest by the due date as
required by law. However, in the opinion of the management the update would not have a material impact on these
standalone financial statements. Accordingly, these standalone financial statements do not include any adjustments
for the transfer pricing implications, if any.

51. On 21 November 2025, the Government of lndia notified the Code on Wages, 2019: the Industrial Relations Code,
2020: the Code on Social Security, 2010: and the Occupational Safety, Health and Working Conditions Code, 2020,
thereby consolidating 29 existing labour laws. The Company has assessed the incrernental impact of these
changes and the same has been accounted in these standalone financial statement for the year ended 31 March
2026. The Company will continue to evaluate the impact of future regulatory clarifications and Rules.