26.8 Provision, Contingent Liability and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events
and it is probable that there will be outflow of resources. Provisions are determined by discounting the expected future cash flows at a pre- tax rate
that reflects current market assessment of the time value of money and the risks specific to the liability. Contingent liabilities not provided for, are
disclosed in the accounts by way of Notes.

26.9 Cash Flow statement

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of non-cash nature, any
deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing
cash flows. The cash flows are segregated into operating, investing and financing activities.

26.10 Borrowing Cost

Borrowing costs that are attributable to the acquisition/Construction/Acquisition/Production of qualifying assets (Assets which requires substantial
period of time to get ready for its intended use) are capitalized as part of the cost of that asset. All other borrowing cost is charged to revenue.

26.11 Government Subsidy / Grant

Grants from the government are recognized at their fair value where there is reasonable assurance that the grant will be received and the company
will comply with all attached conditions. All government grants are initially recognized by way of setting up as deferred income. Government grants
relating to income are subsequently recognized in the profit or loss over the period necessary to match them with the cost that they are intended
to compensate. Government grants relating to the purchase of property plant and equipment are subsequently recognized in profit or loss on a
systematic basis over the expected life of the related depreciable asset.

26.12 Foreign Currency Transactions
Initial recognition

Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the
reporting currency and the foreign currency at the date of the transaction.

Conversion

Foreign currency monetary items are reported using the closing rate or at the forward contracted rates. Non-monetary items which are carried in
terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction, and non-monetary
items which are carried at fair value or other similar value denominated in a foreign currency are reported using the exchange rates that existed
when the values were determined.

Exchange differences

Exchange differences arising on the settlement of monetary items or on reporting Company’s monetary items at rates different from those at which
they were initially recorded during the year, or reported in previous financial statements, are recognised as income or as expenses in the year in
which they arise.

26.13 Earnings per Share

Basic Earnings per share is calculated by dividing the Net profit or loss after tax attributable to equity shareholders by the weighted average
number of equity shares outstanding during the year. Diluted EPS is determined by adjusting the Profit or loss attributable to equity shareholders
and the weighted average number of equity shares outstanding for the effects of all dilutive potential equity shares.

26.14 Income Tax

The tax provision is considered as stipulated in IND AS 12 and includes current and deferred tax liability. The company recognizes the
accumulated deferred tax liability based on accumulated time difference using current tax rate. The company as a conservative measure does not
reckon deferred tax asset. Both the current tax and deferred tax liability relating to items recognized outside the profit or loss is recognized either
in “other Comprehensive Income” or directly in “Equity” as the case may be.

The Company elected to exercise the option permitted under Section 115BAA of the Income-tax Act, 1961 as introduced by the
Taxation Laws (Amendment) Act, 2019 Accordingly, the Company has recognised Provision for Income tax for the quarter and year
ended March 31, 2025 and remeasured its deferred tax assets /liabilities on the basis, the rate prescribed in 1he said section.

26.15 Segment Reporting

As the company has only one business segment i.e., manufacture and marketing of welding electrodes and only one geographical segment, the
segment reporting requirement as per IND AS 108 is not applicable to the company.

26.16 Impairment of Non- financial Assets

i) The carrying values of non-financial assets are reviewed for impairment at each Balance Sheet date, if there is any indication of impairment
based on internal and external factors.

ii) Non-financial assets are treated as impaired when the carrying amount of such asset exceeds its recoverable value. After recognition of
impairment loss, the depreciation / amortization for the said assets is provided for remaining useful life based on the revised carrying amount,
less its residual value if any, on straight line basis.

iii) An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired.

iv) An impairment loss is reversed when there is an indication that the impairment loss may no longer exist or may have decreased.

26.17 Financial Instruments

A financial instrument is a contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions of the relevant
instrument and are initially measured at fair value. T ransaction costs that are directly attributable to the acquisition or issue of financial assets and
financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value
of the financial assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss.

26.18 Financial Asset

i) Financial assets comprise of investments in Equity, Trade Receivables, Cash and Cash Equivalents and Other Financial Assets.

ii) Depending on the business model (i.e.) nature of transactions for managing those financial assets and its contractual cash flow characteristics,
the financial assets are initially measured at fair value and subsequently measured and classified at:

a) Amortized cost; or

b) Fair value through Other Comprehensive Income (FVTOCI); or

c) Fair value through Profit or Loss (FVTPL)

d) Amortized cost represents carrying amount on initial recognition at fair value plus or minus transaction cost.

iv) The company derecognizes a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers the
financial asset and substantially all the risks and rewards of ownership of the asset to another party. On De-recognition of a financial asset
or part thereof, the difference between the carrying amount measured at the date of recognition and the consideration received including any
new asset obtained less any new liability assumed shall be recognized in the statement of profit and Loss.

v) The company assesses at each balance sheet date whether the financial asset or group of financial assets is impaired. IND AS 109 requires
expected credit losses to be measured through a loss allowance. The company recognizes lifetime expected losses for trade receivables
that do not constitute a financing transaction. For all other financial assets, expected credit losses are measured at an amount equal to 12
month expected credit losses or at an amount equal to lifetime expected losses, if the credit risk on the financial asset has increased
significantly since initial recognition.

26.19 Financial Liability

i) Financial liabilities comprise of Borrowings from Banks, T rade payables, Derivative financial instruments, financial guarantee obligation and
other financial liabilities.

iii) Financial liabilities are derecognized when and only when it is extinguished (i.e) when the obligation specified in the contract is discharged
or cancelled or expired.

iv) Upon de-recognition of its financial liabilities or part thereof, the difference between the carrying amount of a financial liability that has been
extinguished or transferred to another party and the consideration paid including any non-cash assets transferred or liabilities assumed is
recognized in the Statement of Profit and Loss.

26.20 Fair value measurement

i) 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.

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

iii) All assets and liabilities for which fair value is measured are disclosed in the financial statements are categorized within fair value hierarchy
based on the lowest level input that is significant to the fair value measurement as a whole. The fair value hierarchy is described as below:
Level 1 : Unadjusted quoted prices in active markets for identical assets or liabilities

Level 2 : Valuation techniques for which the lowest level inputs that are significant to the fair value measurement are directly or indirectly

observable.

Level 3 : Valuation techniques for which the lowest level inputs that are significant to the fair value measurement are unobservable.

iv) For assets and liabilities that are recognized in the Balance sheet on a recurring basis, the company determines whether transfers have
occurred between levels in the hierarchy by reassessing categorization at the end of each reporting period (i.e.) based on the lowest level
input that is significant to the fair value measurement as a whole.

v) For the purpose of fair value disclosures, the company has determined the classes of assets and liabilities based on the nature, characteristics
and risks of the assets or liabilities and the level of the fair value hierarchy as explained above.

vi) The basis for fair value determination for measurement and / or disclosure purposes is detailed below :

a. Investments in Equity

The fair value is determined by reference to their quoted prices at the reporting date. In the absence of the quoted price, the fair value of the
equity is measured using generally accepted valuation techniques.

b. Forward exchange contracts

The fair value of forward exchange contracts is based on the quoted price if available; otherwise it is estimated by discounting the difference
between contractual forward price and current forward price for the residual maturity of the contract using government bond rates.

c. Non-derivative financial liabilities

The fair value of non-derivative financial liabilities viz, borrowings are determined for disclosure purposes calculated based on the present
value of future principal and interest cash flows, discounted at the market rate of interest at the reporting date.

26.21 Significant Estimates and Judgments

The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts
of revenues, expenses, assets and liabilities and the accompanying disclosures, and the disclosure of contingent liabilities. Actual results could
vary from these estimates. The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are
recognized in the period in which the estimate is revised if the revision effects only that period or in the period of the revision or future periods, if
the revision affects both current and future years.

Accordingly, the management has applied the following estimates / assumptions / judgments in preparation and presentation of financial statements :

(i) Property, Plant and Equipment, Intangible Assets and Investment Properties

The residual values and estimated useful life of PPEs, Intangible Assets and Investment Properties are assessed by technical team duly reviewed
by the management at each reporting date. Wherever the management believes that the assigned useful life and residual value are appropriate,
such recommendations are accepted and adopted for computation of depreciation/ amortization. Also, management judgment is exercised for
classifying the asset as investment properties or vice versa.

(ii) Current Taxes

Calculations of income taxes for the current period are done based on applicable tax laws and management’s judgments by evaluating positions
taken in tax returns and interpretations of relevant provisions of law.

(iii) Contingent Liabilities

Management judgments is exercised for estimating the possible outflow of resources, if any, in respect of contingencies / claims / litigations
against the Company as it is not possible to predict the outcome of pending matters with accuracy.

(iv) Impairment of Trade receivables

The impairment for financial assets are done based on assumptions about risk of default and expected loss rates. The assumptions, selection of
inputs for calculation of impairment are based on management judgments considering the past history, market conditions and forward-looking
estimates at the end of each reporting date.

(v) Impairment of Non-financial assets (PPE/Intangible Assets / Investment Properties)

The impairment of non-financial assets is determined based on estimation of recoverable amount of such assets. The assumptions used in
computing the recoverable amount are based on management judgments considering the timing of future cash flows, discount rates and the risks
specific to the asset.

(vi) Defined Benefit Plans and Other long term benefits

The cost of the defined benefit plan and other long term benefits, and the present value of such obligation are determined by the independent actuarial
valuer. Management believes that the assumptions used by the actuary in determination of the discount rate, future salary increases, mortality rates
and attrition rate are reasonable. Due to the complexities involved in the valuation and its long term nature, this obligation is highly sensitive to
changes in these assumptions.

(vii) Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities could not be measured based on quoted prices in active markets, management uses
valuation techniques including the Discounted Cash Flow (DCF) model, to determine its fair value. The inputs to these models are taken from

26.7 Under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED) which came into force from October 02, 2006,
certain disclosures are required to be made relating to Micro, Small and Medium enterprises. The Company has not received any
memorandum as required to be filed by the suppliers with the notified authorities under the above said act claiming their status as
micro, small or medium enterprises. Consequently, the amount paid / payable to these parties is considered to be Nil.

26.8 The amount shown as outstanding from Trade receivables includes an amount of Rs.25.77 lakhs which are subject to dispute.
However, the management considers the amount as fully realizable and hence they are considered as good.

26.9 Other Statutory Information (to the extent applicable) - Part : 1

(i) There is no Immovable Property, title deeds of those are not held in the name of the Company.

(ii) The Company has no investment property and accordingly its fair valuation is not required at year end.

(iii) & (iv) No revaluation of Property, Plant & Equipment (Including ROU) & Intangible assets has been carried out during the year.

(v) The Company has not granted any loans or advances in the nature of loans to promoters, directors, KMPs or other related
parties as defined under Companies Act, 2013, either severally or jointly with any other person and no balances towards the
same is outstanding as on the end of the financial year.

vi) Capital work in progress relates to currently ongoing project for building construction and is outstanding for less than a year.
None of the Capital Work in progress are overdue or exceeded its cost compared to its original plan and none of the projects
have been suspended during the year.

(vii) The Company does not have any intangible assets under development.

(viii) The Company neither have any Benami property, nor any proceeding has been initiated or pending against the Company for
holding any Benami property.

(ix) With regard to the borrowings made by the Company from banks on the basis of security of its current assets, the company
regularly submits the prescribed returns or statements of current assets at periodic intervals. The statements and returns are
in agreement with the books of accounts and there are no material discrepancies.

(x) The Company is not declared wilful defaulter by any bank or financial institution or other lender.

(xi) The Company does not have any transactions with companies struck off.

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

(xiii) The Company has not made any investments till 31 -03-2024 in Subsidiaries hence compliance with number of layers prescribed
under clause (87) of Section 2 of the Act read with Companies (restriction on number of layers) Rules, 2017 is not applicable

(xiv) The prescribed financial ratios are furnished in Note 23 above.

(xv) Compliance with approved Scheme(s) of arrangements in terms of Sec 230 - 237 of Companies Act 2013 - Not Applicable

(xvi) (A) The Company has not advanced or loaned or invested funds in any other person(s) or entity(ies), including foreign entities

(Intermediaries) with the understanding that the Intermediary shall:- 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 - provide any
guarantee, security or the like to or on behalf of the ultimate beneficiaries.

(B) The Company has not received any fund 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 : - 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 - provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

Other Statutory Information (to the extent applicable) - Part : 2

(i) The Company does not have any such 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.

(ii) The provisions of section 135 of the Companies Act, 2013, relating obligation to spend on Corporate Social Responsibility is not
applicable to the Company during the financial year.

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

26.10 The figures have been rounded off to the nearest rupee.

26.11 Previous year figures have been reclassified wherever necessary to correspond to the current year classification.

For and behalf of the Board of Directors for and behalf of the Board of Directors

For Poonam Ankit and Associates POONAM JAIN M B. RANJIT KUMAR KOTHARI B POPATLAL KOTHARI

Chartered Accountants Partner [M.No: 228039] Director Managing Director

FRN:017409s DIN : 01560805 DIN: 00594168

Place : Chennai JAGRUTI JAIN P KASHYAP KOTHARI

^Date : ³°^{TH MAY} 2025 Company Secretary Chief Financial Officer

UDIN : 25228039BMINHJ4495