v During the financial year 2021-22, the Company completed construction of MRO Centre at a cost of Rs. 2,263.66 lakhs. The MRO Centre has been specifically designed for the requirement of the lessee. The income from the MRO Centre by way of lease charges started with effect from 01.09.2021. The initial lease year as per the agreement is nine and a half years. In the opinion of the management, there is reasonable certainty that the lease will be extended at least for a similar period.

vi The valuation of the investment property was carried out by an independent valuer in March 2026. The market value of the property was assessed using the Depreciated Replacement Cost (DRC) Method.

Cash credit under Multiple Banking Arrangements are from banks secured by first pari passu charge in favour of Kotak Mahindra Bank on entire current assets including stocks lying at the Company's factory at Nalagarh and other stock points, on book debts and on entire fixed assets of the Company.

The Company has not utilised the cash credit facility as on 31 March, 2026 (31 March, 2025 - NIL). The balance appearing in the cash credit accounts represents a positive deposit balance maintained with the banks.

Quarterly returns or statements of current assets filed by the company with banks or financial institutions are in agreement with the books of accounts;

All the charges registered with Registrar of Companies were filed within stipulated time.

(i) Capital reserve

Capital reserve represents the amount on account of forfeiture of equity shares of the Company.

(ii) Securities premium

Securities Premium represents amount received on issue of shares in excess of the par value.

(iii) General reserve

Under the erstwhile Companies Act 1956, general reserve was created through an annual transfer of net income at a specified percentage in accordance with applicable regulations. Consequent to introduction of Companies Act 2013, the requirement to mandatorily transfer a specified percentage of the net profit to general reserve has been withdrawn. Central cash subsidy amounting to Rs. 30 lakh received for the installation of plant at Nalagarh in 2006 is included in general reserve.

However, the amount previously transferred to the general reserve can be utilised only in accordance with the specific requirements of Companies Act, 2013.

(iv) Retained earnings

Retained earnings represent the amount of accumulated earnings of the Company.

(v) Other comprehensive income

It comprises amounts that will not be re-classified to profit & loss and are eligible to be re-classified in retained earning.

(vi) Payment of Dividend

The final dividend on shares is recorded as a liability on the date of approval by the shareholders and interim dividends are recorded as a liability on the date of declaration by the Company's Board of Directors. The Company declares and pays dividends in Indian rupees. Companies are required to pay/distribute dividend after deducting applicable taxes. The remittance of dividends outside India is governed by Indian law on foreign exchange and is also subject to withholding tax at applicable rates.

During the year ended March 31, 2026, on account of the final dividend for financial year 31st March 2025 and interim dividend for financial year 31st March 2026, the Company has incurred a cash outflow of Rs. 632.62 lakhs.

The Board of Directors in their meeting held on May 28, 2026 recommended a final dividend of Rs. 1.50/-per equity share for the financial year ended March 31, 2026. The payment is subject to the approval of shareholders in the AGM of the Company if approved, would result in a cash outflow of Rs.393.75 lakhs.

Segment Information

The Operating Segment has been reported in a manner consistent with the internal reporting provided to the Chief Financial Officer and the Chief Executive Officer who are the Chief Operating Decision Maker (CODM).The Company is engaged in the manufacturing of the Precured Tread Rubber, Bonding Repair and Extrusion Gum and Rubber Cement, which are used for retreading of tyres and providing tyre retreading service. These products do not have any different risks and returns and thus the CODM performs review based on one operating segment.

Income tax expense comprises current tax expense and the net change in the deferred tax asset or liability during the year. Current and deferred taxes are recognised in statement of profit and loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive income or directly in equity, respectively.

The Company has leases for the corporate office, depots and related facilities. With the exception of short term leases and leases of low-value underlying assets, each lease is reflected on the balance sheet as a right-of-use asset and a lease liability.

The right-of-use asset is subsequently measured at cost less any accumulated depreciation, accumulated impairment losses, if any and adjusted for any remeasurement of the lease liability. The right-of-use asset is depreciated using the straight-line method from the commencement date over the shorter of lease term or useful life of right-of-use asset. The estimated useful lives of right-of-use-asset are determined on the same basis as those of property, plant and equipment. Right-of-use asset are tested for impairment whenever there is any indication that their carrying amounts may not be recoverable. Impairment loss, if any, is recognised in the statement of profit and loss.

Pursuant to a mutual agreement with the lessor, the Company modified the terms of a building lease, constituting a lease modification under Ind AS 116. Consequently, the lease liability has been remeasured and reduced by Rs 68.46 lakhs with a corresponding adjustment to the Right-of-Use (ROU) asset, resulting in carrying amounts of Rs 435.25 lakhs and Rs 343.74 lakhs respectively as at 31st March 2026.

d. The rate for discounting of leases is in the range of 8% to 9%.

e. Refer note 41(d) for information about liquidity risk relating to lease liabilities.

f. Significant Judgements in determining the lease term of contracts with renewal and termination options: The Company determines the lease term as the non-cancellable term of the lease, together with any periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease, if it is reasonably certain not to be exercised.

The Company has several lease contracts that include extension and termination options. The Company applies judgement in evaluating whether it is reasonably certain whether or not to exercise the option to renew or terminate the lease. That is, it considers all relevant factors that create an economic incentive for it to exercise either the renewal or termination. After the commencement date, the Company reassesses the lease term if there is a significant event or change in circumstances that is within its control and affects its ability to exercise or not to exercise the option to renew or to terminate.

The Company included the renewal periods as part of the lease term for leases of buildings and other with shorter non-cancellable periods. The Company typically exercises its option to renew for these leases because there will be a significant negative effect on the operations if a replacement asset is not readily available. The renewal periods for leases of buildings and others with longer non-cancellable periods are not included as part of the lease term as these are not reasonably certain to be exercised. Furthermore, the periods covered by termination options are included as part of the lease term only when they are reasonably certain not to be exercised.

As at As at

Particulars 31 March, 2026 31 March, 2025

(Rs. / lakh)_(Rs. / lakh)

During the year the company received a favourable appellate order in respect of penalties amounting to Rs.

25.93 lakhs levied under section 271D and 271E of the Income Tax Act.

(iii) . In respect of the assessment year 2018-19, the Assessing

Officer has disallowed expenditure of Rs.33.28 lakh.The

Company has filed an appeal before CIT (Appeals) against 10 n 10 n

the order of the Assessing Officer and proceedings are in progress. The Company has deposited as sum of Rs 2.75 lakh against the demand which is included under note no. 9.

(iv) . In respect of the assessment year 2021-22, the Assessing

Officer has errored in computation of tax liability as he has

not given the benefit of new regime tax rate which was 4150 41 50

opted by the Company. an appeal before CIT (Appeals) . .

against the order of the Assessing Officer and proceedings are in progress.

(v) . In respect of the assessment year 2022-23, there is a

calculation error in the assessment order received under 4 55

section 143(3). The Company has filed a rectification application under section 154 before the assessing officer.

(vi) . Pending labour cases, being disputed by the Company. 10.81 10.81

(vii) . Input Credit claimed by the Company but not allowed by _2.00 -

the GST department. ^2.00 -

(viii) . Demand raised by the GST Authorities, being disputed

by the Company. The Company has deposited a sum of 152 1 52

Rs.1.52 Lakh against the demand which is included under . .

note no.9.

^{(ix) . Corporate guarantee given to bank against the loan} _2,000.00 2,000.00

sanctioned by the bank to the subsidiary. ^, . ^, .

Total _2,245.59 2,274.07

Note :

The amount assessed as contingent liability does not include interest (except in demand raised by the sales tax authorities) that could be claimed by the counter parties.

Based on expert opinions, the management believes that the Company has a strong chance of success in the above mentioned cases and hence no provision is considered necessary in respect of the disputed amounts detailed above.

40 Employee benefit plans

a. Defined contribution plans

The Company makes contribution to Provident Fund and Employee State Insurance Scheme which are defined contribution plans, for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

All provident fund contributions are charged to the statement of profit and loss.

b. Defined benefit plan Gratuity

The Company has a defined benefit gratuity plan. Employees who have completed five years or more of service are eligible for Gratuity when leaving the Company at 15 days last drawn salary for each completed year of service.

The most recent valuation of the present value of defined benefit obligation was carried as at 31 March, 2026 by an actuary in which the present value of the defined benefit obligation, and the related current service cost and past service cost were measured using the projected unit credit method.

The company has invested fund in LIC of India ("insurer"). The future information of fund investments are not available with the Company.

Significant actuarial assumptions for the determination of the defined obligation are discount rate, expected salary increase and mortality. The sensitivity analysis below have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

A. Capital Management

Capital includes equity attributable to the equity holders of the Company and all other equity reserves. The primary objective of the Company's capital management is to safeguard its ability to continue as going concern and to ensure that it maintains an efficient capital structure and maximize shareholder value. The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. No changes were made in the objectives, policies or processes for managing capital during the year.

In the course of its business, the Company is exposed primarily to fluctuations in Interest rates, security price risk, credit risk and liquidity risk which may adversely impact the fair value of its financial instruments, the operation of the Company did not have an exposure for foreign currency exchange rates as the majority of the operations are in India only. The Company has a risk management policy covering risks associated with the financial assets and liabilities such as interest rate risk, security price risk and credit risk. The risk management policy has been approved by the board of directors. The risk management framework aims to:

• Create a stable business planning environment by reducing the impact of interest rate fluctuations on the Company's business plan. n.

• Achieve greater predictability to earnings by determining the financial value of the expected earnings in advance.

The Company does not use the derivative financial instruments for risk mitigation.

a. Market risk

Market risk is the risk of any loss in future earnings, in realisable fair values or in future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the foreign currency exchange rates, interest rates, liquidity and other market changes. Future specific market movements cannot be normally predicted with reasonable accuracy.

i. Foreign currency exchange rate risk

The Company operates majorly in India but is exposed to foreign exchange risk arising through its sale and purchase of goods and services with overseas suppliers and investment in foreign currency transactions primarily with respect to US Dollar ('USD'). The Company does not use the derivative financial instruments to manage it's risk.

iii. Interest rate risk Financial liabilities

The company is virtually debt free and the exposure to Interest Rate risk from the perspective of financial liabilities is negligible. Further, treasury activities focus on managing investments and debt instruments and are administered under a set of approved policies guided by safety, liquidity and returns.

Financial assets

The Company's investments are primarily in fixed rate interest bearing investments. Hence the Company is not significantly exposed to interest rate risk.

b. Security price risk

The Company is exposed to equity price risks arising from equity investments held by the Company and classified in the balance sheet as fair value through OCI.

i. Equity price sensitivity analysis

The sensitivity analysis below has been determined based on the exposure to equity price risks at the end of the year.

If the equity instruments (equity shares and equity linked mutual fund) prices had been 5% higher / lower. Other comprehensive income for the year ended 31 March, 2026 would increase / decrease by Rs.295.37 Lakh (for the year ended 31 March 2025: increase / decrease by Rs. 236.70 lakh) as a result of the change in fair value of equity investment measured at FVTOCI.

ii. Exposure in mutual funds (Other than equity linked mutual fund)

The Company manages the surplus funds majorly through investments in debt based mutual fund schemes. The price of investment in these mutual fund schemes is reflected though Net Asset Value (NAV) declared by the Asset Management Company on daily basis as reflected by the movement in the NAV of invested schemes. The Company is exposed to price risk on such Investments.

Mutual fund price sensitivity analysis - The sensitivity analysis below have been determined based on Mutual Fund Investment at the end of the year.

If NAV has been 1% higher / lower: Profit for the year ended 31 March 2026 would increase / decrease by Rs. 56.68 lakh (for the year ended 31 March 2025 by Rs. 30.54 Lakh) as a result of the changes in fair value of mutual fund investments.

iii. If the investment in bonds and preference shares prices had been 1% higher / lower:

Profit for the year ended 31 March 2026 would increase / decrease by Rs.23.19 Lakh (for the year ended 31 March 2025: increase / decrease by Rs. 34.23 Lakh) as a result of the change if there is no change in the market risk and other assumptions.

c. Credit risk

Credit risk arises from the possibility that the counter party may not be able to settle it's obligations. To manage trade receivables, the Company periodically assesses the financial reliability of customers, taking into account the financial conditions, economic trends, analysis of historical bad debts and ageing of such receivables.

Financial instruments that are subject to credit risk, principally consist of investments, trade receivables and loans and advances. None of the financial instruments of the Company carry material concentration of credit risks. Financial assets for which loss allowance is measured relates to trade receivables where loss allowance at the year ended March 2026 was estimated at Rs. 11734 lakh (Previous year Rs. 169.64 lakh).

Other than financial assets mentioned above, none of the Company's financial assets are either impaired or past due, and there are no indications that defaults in payment obligations would occur as exposure to Trade Receivable is diversified. There is no single customer whose sales are exceeding 10% of the turnover of the Company.

d. Liquidity risk

Liquidity risk refers to the risk that the Company can not meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per the requirements.

During the year ended, the Company generated sufficient cash flows from operations to meet its financial obligations as and when they fall due.

The amounts disclosed in the table are the contractual undiscounted cash flows. The table below provides details regarding the contractual maturities of significant financial liabilities as at:

Level 1: Quoted prices in the active market. This level of hierarchy includes financial assets that are measured by reference to quoted prices in the active market.

Level 2: Valuation techniques with observable inputs. This level of hierarchy includes items measured using inputs other than quoted prices included within Level 1 that are observable for such items, either directly or indirectly.

Level 3: Valuation techniques with unobservable inputs. This level of hierarchy includes items measured using inputs that are not based on observable market data (unobservable inputs). Fair value determined in whole or in part, using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instruments nor based on available market data.

The fair value of the financial assets are determined at the amount that would be received to sell an asset in an orderly transaction between market participants. The following methods and assumptions were used to estimate the fair values:

a. Investments in mutual funds: Fair value is determined by reference to the quotes of net asset value (NAV) declared by the financial institutions.

b. Quoted equity investments: Fair value is derived from quoted market prices in active markets.

c. Unquoted investments: Fair value is derived on the basis of income approach, in this approach the discounted cash flow method is used to capture the present value of the expected future economic benefits to be derived from the ownership of these investments or from valuation declared by fund house.

Trade receivables, trade payables and other current financial assets and liabilities is considered to be equal to the carrying amounts of these items as generally they are of short term nature. There has been no change in the valuation methodology for Level 3 inputs during the year ended.

Derivative contracts: The Company has not entered into any forward contracts and swaps to manage its exposure as the Company management expects that there are nominal exposure of the Company for foreign exchange and are manageable.

45 GST Input Tax Credit Matter

The Company had availed input tax credit (“ITC") under the CGST Act, 2017 in respect of GST paid on certain plant and machinery/infrastructure, which continues to be carried as recoverable in the books and has not been capitalized as part of property, plant and equipment

The eligibility of such ITC is presently subject matter of litigation/interpretational uncertainty in view of Section 17(5)(d) of the CGST Act and the retrospective amendment proposed through the Finance Bill, 2025.

In earlier years, considering the pending litigation, the matter had been disclosed as contingent tax exposure. Based on legal opinion obtained and management assessment, the Company continues to believe that the aforesaid amount is recoverable

The aggregate amount carried as recoverable as at 31 March 2026 is Rs. 31752 lakh

In the event the matter is ultimately decided against the Company, the amount may require capitalization and consequential depreciation/adjustment in the Statement of Profit and Loss depending upon the remaining useful life of the related assets at that time.

46 Investment in Compulsorily Convertible Cumulative Preference Shares (CCPS) of a foreign company

The fair valuation of the Company's investment in Compulsorily Convertible Cumulative Preference Shares (CCCPS) of a foreign company, having a face value of USD 1.80 million (equivalent to Rs. 12 crore), has been determined at USD 1.40 million (equivalent to Rs. 1,319.50 lakhs) as at 31 March 2026 based on a valuation carried out by an independent registered valuer.

The valuation has been determined using a combination of the Net Asset Value (“NAV") method and Discounted Cash Flow (“DCF") method, having regard to the nature and status of the underlying assets and business operations of the investee company. In the earlier periods, the valuation was primarily based on the DCF method.

The investee company, through its underlying interests, holds oil and gas exploration rights in Nigeria. The valuation is based on various assumptions and estimates including renewal of the relevant lease license beyond its present validity up to June 2029 and extension for another period of 20 years, however, the cashflows have been determined assuming that most of the reserves will be exploited within ten years period ending June, 2038.

The underlying operations had remained substantially suspended in earlier years due to regulatory restrictions relating to gas flaring requirements. During the current year, gas processing infrastructure has substantially been completed and management expects recommencement of production operations subject to operational and regulatory clearances.

Considering the inherent uncertainties associated with oil and gas exploration and production activities relating to expected recommencement of production operations, future crude oil and gas prices, operating and development costs, and the prevailing regulatory and economic environment, the actual outcome may differ from the assumptions considered for the purpose of valuation. The impact due to change in the estimates mentioned above could not be quantified.

47 Other statutory information :

(a) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

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

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

(d) The Company, its associate companies, joint venture companies and joint operations have not advanced or loaned or invested funds to any person(s) or entity(is), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(i) 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

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

(e) The Company,its associate companies, joint venture companies and joint operations have not

received any fund from any person(s) or entity(is), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(i) 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

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

(f) The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

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

(h) The Company has complied with the number of layers for its holding in downstream companies prescribed under clause (87) of section 2 of the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017

(i) There are no transactions with struck-off companies for the year ending March 31, 2026.

48 Disclosure required under Section 186(4) of the Companies Act, 2013

The Company has given loans only to staff members for personal purposes which as on 31 March 2026 amounted to Rs. 20.85 lakh (As on Mar'25 Rs. 28.95 lakh). The investments made by the Company in various entities have been detailed in Notes 7 and 13. The Company has not granted any loans or advances in the nature of loans to promoters, directors, KMP's and the related parties.

50 Previous year figures

Previous year figures have been regrouped/reclassified, wherever necessary to confirm to this year's classification.