n. Provisions

A provision is recognised when an enterprise has a present obligation as a result of past event and it is probable that an outflow
of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. If the effect of time
value of money is material, provisions are discounted using a pre-tax rate that reflects when appropriate, the risks specific to
the liability.

o. Retirement and other employee benefits

(i) Retirement benefit in the form of provident fund is a defined contribution scheme. The Company has no obligation, other
than the contribution payable to the provident fund. The Company recognizes contribution payable to the provident
fund scheme as an expense, when an employee renders the related service. If the contribution payable to the scheme for
service received before the balance sheet date exceeds the contribution already paid, the deficit payable to the scheme
is recognized as a liability after deducting the contribution already paid. If the contribution already paid exceeds the
contribution due for services received before the balance sheet date, then excess is recognized as an asset to the extent that
the pre-payment will lead to, for example, a reduction in future payment or a cash refund.

(ii) Gratuity is a defined benefit plan and provision is being made on the basis of actuarial valuation carried out by an
independent actuary at the year end using projected unit credit method. The company has neither taken any policy, from
Life Insurance Corporation of India nor from any other company for the payment of gratuity.

Remeasurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net
interest on the net defined benefit liability and the return on plan assets (excluding amounts included in net interest on the
net defined benefit liability), are recognised immediately in the balance sheet with a corresponding debit or credit to retained
earnings through OCI in the period in which they occur. Remeasurements are not reclassified to profit or loss in subsequent
periods.

Past service costs are recognised in profit or loss on the earlier of:

? The date of the plan amendment or curtailment, and

? The date that the Group recognises related restructuring costs

Net interest is calculated by applying the discount rate to the net defined benefit liability or asset. The Group recognises the
following changes in the net defined benefit obligation as an expense in the consolidated statement of profit and loss:

? Service costs comprising current service costs, past-service costs, gains and losses on curtailments and non-routine
settlements; and

? Net interest expense or income
Compensated Absences

The Company measures the expected cost of compensated absence as the additional amount that the Company expects to pay
as a result of the unused entitlement that has accumulated at the balance sheet date. The calculation of the Company's obligation
is performed annually by an independent actuary. The Company recognises actuarial gains and losses immediately in the
statement of profit and loss as Employee Benefit Expenses which was earlier included as Other Comprehensive Income/
Expense.

p. Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument
of another entity.

Financial Assets

Initial recognition and measurement

All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at fair value through
profit or loss, transaction costs that are attributable to the acquisition of the financial asset. Purchases or sales of financial assets
that require delivery of assets within a time frame established by regulation or convention in the market place (regular way
trades) are recognised on the trade date, i.e., the date that the Company commits to purchase or sell the asset.

Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in four categories:

? Debt instruments at amortised cost

? Debt instruments at fair value through other comprehensive income (FVTOCI)

? Debt instruments, derivatives and equity instruments at fair value through profit or loss (FVTPL)

? Equity instruments measured at fair value through other comprehensive income (FVTOCI)

Debt instruments at amortised cost

A 'debt instrument' is measured at the amortised cost if both the following conditions are met:

a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and

b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest
(SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate
(EIR) method. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs
that are an integral part of the EIR. The EIR amortisation is included in finance income in the profit or loss. The losses arising
from impairment are recognised in the profit or loss.

Debt instrument at FVTPL

FVTPL is a residual category for debt instruments. Any debt instrument, which does not meet the criteria for categorization as
at amortized cost or as FVTOCI, is classified as at FVTPL.

In addition, the Company may elect to designate a debt instrument, which otherwise meets amortized cost or FVTOCI
criteria, as at FVTPL. However, such election is allowed only if doing so reduces or eliminates a measurement or recognition
inconsistency (referred to as 'accounting mismatch'). The Company has not designated any debt instrument as at FVTPL.

Debt instruments included within the FVTPL category are measured at fair value with all changes recognized in the P&L.

Equity investments

All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments which are held for trading and
contingent consideration recognised by an acquirer in a business combination to which Ind AS103 applies are classified as at
FVTPL. For all other equity instruments, the Company may make an irrevocable election to present in other comprehensive
income subsequent changes in the fair value. The Company makes such election on an instrument-by-instrument basis. The
classification is made on initial recognition and is irrevocable.

If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding
dividends, are recognized in the OCI. There is no recycling of the amounts from OCI to P&L, even on sale of investment.
However, the Company may transfer the cumulative gain or loss within equity.

Equity instruments included within the FVTPL category are measured at fair value with all changes recognized in the P&L.
Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a Company of similar financial assets) is primarily
derecognised (i.e. removed from the Company's balance sheet) when:

? The rights to receive cash flows from the asset have expired, or

? The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the
received cash flows in full without material delay to a third party under a 'pass-through' arrangement; and either (a) the
Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred
nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement,
it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor
retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Company continues
to recognise the transferred asset to the extent of the Company's continuing involvement. In that case, the Company also
recognises an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the
rights and obligations that the Company has retained.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original
carrying amount of the asset and the maximum amount of consideration that the Company could be required to repay.

Impairment of financial assets

In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for measurement and recognition
of impairment loss on the financial assets. The Company follows 'simplified approach' for recognition of impairment loss

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allowance on Trade receivables.

The application of simplified approach does not require the Company to track changes in credit risk. Rather, it recognises
impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.

For recognition of impairment loss on other financial assets and risk exposure, the Company determines that whether there
has been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, 12-month
ECL is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If, in a
subsequent period, credit quality of the instrument improves such that there is no longer a significant increase in credit risk
since initial recognition, then the entity reverts to recognising impairment loss allowance based on 12-month ECL.

Lifetime ECL are the expected credit losses resulting from all possible default events over the expected life of a financial
instrument. The 12-month ECL is a portion of the lifetime ECL which results from default events that are possible within 12
months after the reporting date.

ECL is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all
the cash flows that the entity expects to receive (i.e., all cash shortfalls), discounted at the original EIR. When estimating the
cash flows, an entity is required to consider:

? All contractual terms of the financial instrument (including prepayment, extension, call and similar options) over the
expected life of the financial instrument. However, in rare cases when the expected life of the financial instrument cannot
be estimated reliably, then the entity is required to use the remaining contractual term of the financial instrument

? Cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms

ECL impairment loss allowance (or reversal) recognized during the period is recognized as income/ expense in the statement
of profit and loss (P&L). This amount is reflected under the head 'other expenses' in the P&L.

Financial Liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and
borrowings, trade and other payables.

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly
attributable transaction costs.

The Company's financial liabilities include trade and other payables, loans and borrowings including cash credit and financial
guarantee contracts.

Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities
designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if
they are incurred for the purpose of repurchasing in the near term. This category also includes derivative financial instruments
entered into by the Company that are not designated as hedging instruments in hedge relationships as defined by Ind AS
109. Separated embedded derivatives are also classified as held for trading unless they are designated as effective hedging
instruments.

Gains or losses on liabilities held for trading are recognised in the statement of profit and loss.

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated as such at the initial
date of recognition, and only if the criteria in Ind AS 109 are satisfied. For liabilities designated as FVTPL, fair value gains/
losses attributable to changes in own credit risk are recognized in OCI. These gains/ loss are not subsequently transferred to
P&L. However, the Company may transfer the cumulative gain or loss within equity. All other changes in fair value of such
liability are recognised in the statement of profit or loss. The Company has not designated any financial liability as at fair value
through Statement of profit and loss.

Derecognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an
existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an
existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original
liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement
of profit or loss.

q. Fair Value measurement

The Company measures financial instruments, such as, derivatives at fair value at each balance sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to
sell the asset or transfer the liability takes place either:

? In the principal market for the asset or liability, or

? In the absence of a principal market, in the most advantageous market for the asset or liability
The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the
asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant's ability to generate economic benefits
by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest
and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available
to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the
fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a
whole:

? Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities

? Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is
directly or indirectly observable

? Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is
unobservable

For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines whether
transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is
significant to the fair value measurement as a whole) at the end of each reporting period.

The Company's management determines the policies and procedures for recurring fair value measurement, such as derivative
instruments and unquoted financial assets measured at fair value.

At each reporting date, the management analyses the movements in the values of assets and liabilities which are required to
be remeasured or re-assessed as per the Company's accounting policies. The management also compares the change in the fair
value of each asset and liability with relevant external sources to determine whether the change is reasonable.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the
nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

r. Contingent liability

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be
confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the
Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be
required to settle the obligation or a reliable estimate of the amount cannot be made. Contingent assets are neither recognised
nor disclosed in the financial statements Provisions and contingent liabilities are reviewed at each balance sheet date.

s. Segment Reporting

The Management of the Company takes decision in respect of allocation of resources and assesses the performance basis the
information provided by functional heads and are thus considered to be chief operating decision-maker (CODM).

Based on the Company's business model, manufacturing of specialized cables for railway, defence etc. have been considered
as one segment and the manufacturing and installation of Train Collision avoidance system "KAVACH" for railway have
been considered as other segment. In accordance with Ind AS 108 "Operating Segments", the Company has presented segment
information on the basis of its Ind AS financial statements which forms a part of its financial statement at Note No.39.

t. Cash and Cash Equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and in hand and short-term deposits with an original

maturity of twelve months or less, which are subject to an insignificant risk of changes in value.

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined
above as they are considered an integral part of the Company's cash management.

u. Cash Flow Statement

Cash flows are reported using the indirect method, whereby net profit/ (loss) before tax is adjusted for the effects of transactions
of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments and item of income or expenses
associated with investing or financing cash flows. The cash flows from regular revenue generating (operating activities),
investing and financing activities of the Company are segregated.

v. Earnings per share

Basic earnings per share are calculated by dividing the net profit or loss (after tax) for the year attributable to equity shareholders
by the weighted average number of equity shares outstanding during the year.

Diluted earnings per share when applicable are calculated by dividing the net profit or loss (after tax) for the year attributable
to equity shareholders by the weighted average number of equity shares which would be issued on the conversion of all the
dilutive potential equity shares into equity shares. Dilutive potential equity shares when applicable are deemed converted as
of the beginning of the period, unless they have been issued at a later date.

III Significant accounting judgements, estimates and assumptions:-

The preparation of the Company's financial statements requires management to make judgements, estimates and assumptions
that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the
disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a
material adjustment to the carrying amount of assets or liabilities affected in future periods.

Judgements :-In the process of applying the company's accounting policies, management has made the following judgements,
which have the most significant effect on the amounts recognised in the financial statements

Estimates and assumptions :-The key assumptions concerning the future and other key sources of estimation uncertainty at
the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities
within the next financial year, are described below. The Company based its assumptions and estimates on parameters available
when the financial statements were prepared. Existing circumstances and assumptions about future developments, however,
may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are
reflected in the assumptions when they occur.

Impairment of non-financial assets :-Impairment exists when the carrying value of an asset or cash generating unit exceeds
its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of
disposal calculation is based on available data from binding sales transactions, conducted at arm's length, for similar assets or
observable market prices less incremental costs for disposing of the asset. The value in use calculation is based on a DCF model.
The cash flows are derived from the budget for the next five years and do not include restructuring activities that the Company
is not yet committed to or significant future investments that will enhance the asset's performance of the CGU being tested. The
recoverable amount is sensitive to the discount rate used for the DCF model as well as the expected future cash-inflows and the
growth rate used for extrapolation purposes.

Taxes :-Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the
losses can be utilised. Significant management judgement is required to determine the amount of deferred tax assets that can
be recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.

Defined benefit plans (gratuity):-The cost of the defined benefit gratuity plan and the present value of the gratuity obligation
are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from
actual developments in the future. These include the determination of the discount rate, future salary increases and mortality
rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive
to changes in these assumptions. All assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate, the management
considers the interest rates of government bonds with term that correspond with the expected term of the defined benefit
obligation.

The mortality rate is based on publicly available mortality tables. Those mortality tables tend to change only at interval in
response to demographic changes. Future salary increases and gratuity increases are based on expected future inflation rates
for the respective countries.

Fair value measurement of financial instruments :-When the fair values of financial assets and financial liabilities recorded
in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation
techniques including the DCF model. The inputs to these models are taken from observable markets where possible, but where
this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs
such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value
of financial instruments.

The figures for the corresponding previous period have been regrouped/ reclassified, wherever considered necessary
including requirements of the amended schedule III to the Companies Act, 2013, to make them comparable with current year
classification

5.1 Inventories are valued at cost or net realisable value whichever is lower except for Raw Materials which are carried at
cost where the finished goods in which they will be incorporated are expected to be sold at or above cost.

Raw Materials, Ancillary Raw Materials and Stores & Spares

Cost comprises the cost of purchase including duties and taxes (other than those subsequently recoverable from the taxing
authorities), freight inward and other costs directly attributable to bringing the inventories to their present location and
condition. The cost of Ancillary Raw Materials and Stores & Spares is determined using the First-In First-Out (FIFO)
method.

Work-in-Progress

Cost of Work-in-Progress comprises the cost of raw materials consumed, direct labour and an appropriate allocation of
variable and fixed production overheads incurred in bringing the inventories to their present stage of completion.

Finished Goods

Cost of Finished Goods comprises the cost of raw materials, direct labour and an appropriate allocation of variable and
fixed production overheads incurred in bringing the inventories to their present location and condition. Finished Goods
are valued at the lower of cost and net realisable value.

*The allowance for bad & doubtful debts (for impairment of trade receivable) has been made on the basis of Expected
Credit Loss (ECL) Method based on Ind AS 109. To the extent of ECL provision, the trade receivables have been classified
as doubtful and the remaining have been considered as good.

Receivables from related parties have been excluded from the provision matrix used for external customer receivables.
The management believes that these balances are fully recoverable considering the following factors:

• the counterparties are entities under common control / related parties within the group;

• there is no history of default or credit loss in respect of such balances;

• the related parties have adequate financial strength and liquidity to settle the outstanding dues;

• balances are regularly reviewed and monitored by management; and

• management expects the outstanding amounts to be recovered in full based on past settlement trends and ongoing
business relationships.

• subsequent recoveries after the reporting date further support the recoverability of the outstanding balances.

Accordingly, management has concluded that the credit risk associated with such related party receivables is insignificant
and therefore no material expected credit loss provision is required against these balances as at the reporting date.

Terms / Rights attached to equity shares

a) The Company has a single class of Equity Shares having a par value of INR10 per share (Previous Year INR 10 per
share). Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in
Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the
ensuing Annual General Meeting

b) The Company has not declared any dividend during the period.

c) In the event of liquidation of the company, the holders of equity share will be eligible to receive remaining assets of the
company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity
shares held by the shareholders.

d) The Company has issued Bonus shares to its existing shareholders in the ration of 2:1. during the FY 2024-25

e) The Company has raised share capital of Rs. 2900.00 Millions by issuing 10.00 Millions shares of FV of Rs. 10 each at the
premium of Rs. 280/- per share by way of Initial Public offer during the FY 2024-25

Securities premium

Where a company issues shares at a premium, whether for cash or otherwise, a sum equal to the aggregate amount of
the premium received on those shares is transferred to "Securities Premium Account" and the utilisation thereof is in
accordance with the provisions of Section 52 of the Companies Act, 2013.

Retained Earnings

Retained Earnings (RE) are the accumulated portion of a business's profits that are not distributed as dividends to
shareholders but instead are reserved for reinvestment back into the business. Normally, these funds are used for working
capital and fixed asset purchases (capital expenditures) or allotted for paying off debt obligations.

Share Based Payment

It represents the fair value of services received against employees stock options

During the year, Mr. Suresh Bopparaju an employee covered under the Employee Stock Option Plan ("ESOP") resigned
before completion of the vesting conditions. Accordingly, pursuant to the requirements of IND AS, the Company has
reversed the share-based payment expense previously recognised in respect of the unvested stock options attributable to
such employee.

Consequent to the above, the Company reassessed the ESOP expense recognised in the previous financial year and the
resultant adjustment has been effected through Reserves & Surplus and accordingly the balance appearing under Share
Based Payment Reserve forming part of Other Equity has also been reduced to the extent of such reversal.

Further, the ESOP expense recognised in the current financial year up to Quarter 3 in respect of such unvested options has
been reversed/adjusted through the Statement of Profit and Loss during Quarter 4 of the current financial year.

Other Comprehensive Income

This reserve represent the cumulative gain/losses arising from measurement of the defined benefit obligations relating to
gratuity, as per the requirement of IND AS-19 Employee Benefits

* On 31.03.2026 Mr. Suresh Bopparaju an employee covered under the Company's ESOP scheme resigned prior to vesting
of the stock options. Consequently, the unvested stock options attributable to such employee have been forfeited/reversed
in accordance with the requirements of IND AS 102.

Accordingly, the number of potential equity shares considered for computation of Diluted Earnings Per Share ("DEPS")
for the previous year has been revised/restated to reflect the reduced number of dilutive potential equity shares arising
from ESOPs.

(i) Fair Value Hierarchy

This section explains the judgements and estimates made in determining fair values of the financial instruments that are

(a) recognised and measured at fair value and

(b) measured at amortised cost and for which fair values are disclosed in the financial statements.

To provide an indication about the reliability of the inputs used in determining fair value, the company has classified
financial instruments into three levels prescribed under the accounting standard. An explanation of each level follows
underneath the table.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices.

Level 2: The fair value of financial instruments that are not traded in an active market ( for example traded bonds) 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

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

(iii) Fair value of financial assets and liabilities measured at amortized cost

As of March 31, 2026, March 31, 2025 the fair value of cash and bank balances, trade receivables, other current financial
assets, trade payables and other current financial liabilities approximate their carrying amount largely due to the short
term nature of these instruments.

For other financial assets(i.e. other non current financial assets and other non current financial liabilities) that are
measured at amortised cost, the carrying amounts approximate the fair value.

The Company's risk management policies are established to identify and analyse the risks faced by the Company, to set
appropriate risk limits and controls 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.

This note explains the sources of risk which the entity is exposed to and how the entity manages the risk in the financial
statements.

a) Credit Risk

Credit risk is the risk that a counterparty fails to discharge its obligation to our Group. Our exposure to credit risk is
influenced mainly by cash and cash equivalents and trade receivables. We continuously monitor defaults of customers
and other counterparties and incorporate this information into its credit risk controls. However, majority of our total sales
comprises of sales to Indian Railways or PSUs, details of which are as under:

b) Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes
in market prices. Market risk comprises three type of risks: Currency risk, Interest rate risk and other price risk. Financial
instruments affected by market risk include loans, borrowings, term deposits, and investments.

Foreign Currency Risk

A significant portion of the payments are made by the Company towards consideration for acquiring rights to use
intellectual properties, reference designs and engineering services from abroad for development of its TCAS software and
KAVACH equipments. Also during current financial year the Import of Raw material has also been increased for TCAS
software from ^ 24.09 million in FY 2024-25 to ^ 188.42 Million in FY 2025-26 which shows a significant rise from 21.48% to
55.35% of total imports during the year. Such payments are denominated in foreign currency, mostly the Euro and USD.
Accordingly, we have currency exposures relating to forex payments, other than in Indian Rupees, particularly the Euro
and USD. During the period ended March 2026 and March 2025, our net imports of services amounted to ^ 150.23 and ^
87.94 millions respectively, which constituted 44.13% and 78.43% respectively, of the aggregate of expenditure incurred
on development of intangible assets.

Interest Rate Risk

The Company is exposed to risk due to interest rate fluctuation on long term borrowings. Such borrowings are based
on fixed as well as floating interest rate. Interest rate risk is determined by current market interest rates, projected debt
servicing capability and view on future interest rate. The Company mitigates this risk by regularly assessing the market
scenario.

Commodity Price Risk

We are exposed to risks in respect of price and availability of copper and PVC Compounds used for our manufacturing
operations. The prices of copper are linked to the international prices on the London Metal Exchange (LME) and the price
of PVC Compounds are directly linked the price of crude oil globally. As a result, our procurement cost and costs of goods
sold tend to be impacted by the movements of the LME and of crude oil benchmarks. Since the majority of our business
is with government division or PSU, most of the orders being executed by us contains price variation clause which may
allow us to pass on changes in the cost of our primary raw materials to our customers. However, we may not be able
to do so immediately or fully, and so strong and rapid fluctuations in the prices of these raw materials could affect our
operating results.

c) Liquidity Risk

Liquidity risk is the risk that our Group will encounter difficulty in meeting the obligations associated with its financial
liabilities that are settled by delivering cash. Our approach to managing liquidity is to ensure as far as possible, that it
will have sufficient liquidity to meet its liabilities when they are due. Our management monitors rolling forecasts of our
liquidity position and cash and cash equivalents on the basis of expected cash flows and the due dates for repayment of
term loans. We are confident of managing our financial obligation through available cash and bank balances, short term
borrowings and liquidity management.

The Company's objective with respect to capital management is to ensure continuity of business while at the same
time provide reasonable returns to its various stakeholders. In order to achieve this, requirement of capital is reviewed
periodically with reference to operating and business plans that take into account capital expenditure and strategic
investments. Sourcing of capital is done through judicious combination of equity/internal accruals and borrowings, both
short term and long term. Net debt (total borrowings less investments and cash and cash equivalents) to equity ratio is
used to monitor capital.

Actuarial Assumptions

a) Economic Assumptions

The principal assumptions are the discount rate & salary growth rate. The discount rate is generally based upon
the market yields available on Government bonds at the accounting date relevant to currency of benefit payments
for a term that matches the liabilities. Salary growth rate is company's long term best estimate as to salary increases
& takes account of inflation, seniority, promotion, business plan, HR policy and other relevant factors on long term
basis as provided in relevant accounting standard. These valuation assumptions are as follows & have been received
as input from you.

a) Gratuity

The Company provides gratuity benefits to eligible employees in accordance with the applicable provisions of the
Payment of Gratuity Act, 1972 and other relevant regulations.. In case of death while in service, the gratuity is payable
irrespective of vesting. The amount of gratuity payable on retirement/termination is the employees last drawn basic
salary per month computed proportionately for 15 days salary multiplied by the number of years of service. The gratuity
plan is not a funded plan and the Company makes provision on the basis of acturial valuation and the same is paid by the
company only when it becomes due.

Risk exposure:

Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such company is
exposed to various risks as follow -

b) Compensated Leave Absences

The Company has provided for Acturia! Liability for Earned Leave Liability of the Employees.

Risk exposure:

Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such company is

exposed to various risks as follow -

A) Salary Increases- Actual salary increases will increase the Plan's liability. Increase in salary increase rate assumption
in future valuations will also increase the liability.

B) Investment Risk - If Plan is funded then assets liabilities mismatch & actual investment return on assets lower
than the discount rate assumed at the last valuation date can impact the liability.

C) Discount Rate : Reduction in discount rate in subsequent valuations can increase the plan's liability.

D) Mortality & disability - Actual deaths & disability cases proving lower or higher than assumed in the valuation
can impact the liabilities.

E) Withdrawals - Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal
rates at subsequent valuations can impact Plan's liability.

37 LEASES

Where the Company is lessee

The Company has taken various assets on lease such as, plant & equipment, buildings, office premises, vehicles and
computer equipment. Generally, leases are renewed only on mutual consent and at a prevalent market price and sub-lease
is restricted.

The Company has Adopted Ind AS 116 using the modified retrospective method of adoption. Consequently the company
recorded the lease liability at the present value of the remaining lease payments discounted at the incremental borrowing
rate as on the date of transition and has measured right of use asset at an amount equal to lease liability adjusted for
previously recognised prepaid or accrued lease payments

The Company also applied the available practical expedients wherein it:

a) Used a Single Discount rate to a portfolio of leases with reasonably similar characteristics

b) Relied on its assessment of whether leases ae onerous immediately before the date of initial application

c) Applied the short term lease exemptions to leases with lease term that ends within 12 months of the date of initial
application.

d) Excluded the initial direct cost from the measurement of the right of use asset at the date of initial application.

e) Used hindsight in determining the lease term where the contract contained option to extend or terminate the lease.

42 Additonal Regulatory Information

42.1 Title deeds of immovable properties not held in the name of Company.

Details of all the immovable properties (other than properties where the Company is the leesee of and the lease agreements
are duly executed in favour of the leesee) whose deeds are not held in the name of the Company:"

NIL

42.2 There are no investment in properties

42.3 The Company has not revalued its Property,Plant and Equipment during the year.

42.4 The Company has not revalued its intangible assets during the year.

42.5 The Company had not granted any Loans or advances to promoters, directors, KMPs and the related parties (as defined
underCompanies Act, 2013,) either severally or jointly with any other person

42.6 No procedings have been initiated or pending against Company for holding any Benami Property under Prohibitions of
Benami Transactions Act,1988 (Earliers titled as Benami transactions (Prohibitions) Act,1988

42.7 The quarterly returns/statement of current assets filed by Company with Banks for Borrowings are in agreement with the
books of accounts

42.8 The Company is not declared a wilfull defaulter by any Bank or Financial Institution or any other lender

42.9 The Company has no transaction with Companies which are stuck off under section 248 of the Companies Act,2013 or
under section 530 of Companies Act,1956

42.10 No charges or satisfaction of charges are pending for registration with the Registrar of Companies (ROC)

42.11 With effect from April 01, 2023 the Ministry of Corporate Affairs (MCA) has made it mandatory for every company which
uses accounting software for maintaining its books of accounts to 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 books of accounts along
with the date of such changes were made and ensuring that the audit trail cannot be disabled.

The Company is using Accounting software for maintaining books of accounts for the FY 2025-26 which has a feature
of recording audit trail (edit log) facility and the same has been operated during the year for all relevant transactions
recorded in the software.

42.12 Company had issued 1,00,00,000 equity shares of Rs. 10/- each at premium of Rs. 280 per share total amounting Rs. 2,90,00,00,000/-
have been received in the public issue account(out of which Rs. 272.33 million expended as public issue expenses) from proceeds
of fresh equity shares. The utilisation of the Net proceeds is summarised as below:

Note:1. During quarter ending 31.03.2026, Rs. 8.56 crores are withdrawn as reimbursement of amount from 'Issue Related
Expenses' pursuant to SR dated 13.02.2026.2. The utilisation of Rs. 2.34 crores during quarter ending 31.03.2026, under GCP has been ratified by the Board in
its meeting held on 08.04.2026.

42.13 During the year ended 31 March 2026, the Company incurred a cash loss of Rs. 310.22 Million (Previous year: Rs. NIL).

Based on an assessment of the Company's operational and financial position, management is of the view that the
Company has adequate resources to continue its operations and to realize its assets and discharge its liabilities in the
ordinary course of business. Accordingly, these financial statements have been prepared on a going concern basis.

44 Details of Crypto Currency or Virtual Currency

The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year