1.11. Provisions, Contingent Liabilities & Contingent Assets and Commitments

i) Provisions are recognised when the Company has a present obligation (legal or constructive) as a
result of a past event, if it is probable that an outflow of resources embodying economic benefits will be
required to settle the obligation and a reliable estimate can be made of the amount of the obligation.
Such provisions are determined based on management estimate of the amount required to settle
the obligation at the Balance Sheet date. When the Company expects some or all of a provision to be
reimbursed, the reimbursement is recognised as a separate asset only when the reimbursement is
certain. The expense relating to a provision is presented in the Statement of Profit and Loss net of any
reimbursement, if any.

ii) The amount recognised as a provision is the best estimate of the consideration required to settle
the present obligation at the balance sheet date, taking into account the risks and uncertainties
surrounding the obligation.

iii) If the effect of the time value of money is material, provisions are discounted using a current pre-tax
rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the
increase in the provision due to the passage of time is recognised as a finance cost.

iv) Contingent liability is a possible obligation arising from past events and whose existence will be
confirmed only by the occurrence or non-occurrence of one or more uncertain future events not
wholly within the control of the entity or a present obligation that arises from past events but is not
recognized because; it is not probable that an outflow of resources embodying economic benefits
will be required to settle the obligation or the amount of the obligation cannot be measured with
sufficient reliability.

v) A contingent asset is a possible asset that arises from past events and whose existence will be
confirmed only by- the occurrence or non-occurrence of one or more uncertain future events not
wholly within the control of the entity. The Company does not recognize the contingent asset in its
standalone financial statements since this may result in the recognition of income that may never be
realised.

vi) If it is virtually certain that an inflow of economic benefits will arise, the asset and related income are
recognised in the period in which the change occurs.

vii) Provisions, contingent liabilities and contingent assets are reviewed at each reporting date.

1.12. Income Taxes

The tax expense for the period comprises current and deferred tax.

Income Tax expense is recognised in Statement of Profit and Loss, except to the extent that it relates to
items recognised in the other comprehensive income or in equity. In which case, the tax is also recognised
in other comprehensive income or equity respectively.

i) Current tax

Current tax is the amount of income taxes payable (recoverable) in respect of taxable profit (tax loss)
for a period.

Current tax assets and liabilities are measured at the amount expected to be recovered from or paid
to the taxation authorities, based on tax rates and laws that are enacted or substantively enacted by
the end of the reporting period.

Current tax assets and tax liabilities are offset where the Company has a legally enforceable right to
set off the recognised amounts and intends either to settle on a net basis, or to realise the asset and
settle the liability simultaneously.

ii) Deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and
liabilities in the financial statements and the corresponding tax bases used in the computation of
taxable profit for financial reporting purposes at the reporting date. Deferred tax liabilities and assets
are measured at the tax rates that are expected to apply in the period, in which, the liability is settled or
the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted
by the end of the reporting period. The carrying amount of deferred tax liabilities and assets are
reviewed at the end of each reporting period.

The Company offsets deferred tax assets and deferred tax liabilities if and only if it has a legally
enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and
deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same
taxable entity which intends either to settle current tax liabilities and assets on a net basis, or to realise
the assets and settle the liabilities simultaneously, in each future period in which significant amounts
of deferred tax liabilities or assets are expected to be settled or recovered.

Deferred tax assets and liabilities are offset if there is a legally enforceable right to set off current tax
assets against current tax liabilities and the deferred tax assets and deferred tax liabilities relate to
income taxes levied by the same taxation authority.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the
extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of
the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting
date and are recognised to the extent that it has become probable that future taxable profits will allow
the deferred tax asset to be recovered.

iii) Uncertain Tax Position

Accruals for uncertain tax positions require management to make judgments of potential exposures.
Accruals for uncertain tax positions are measured using either the most likely amount or the expected
value amount depending on which method the entity expects to better predict the resolution of the

uncertainty. Tax benefits are not recognised unless the management, based upon its interpretation
of applicable laws and regulations and the expectation of how the tax authority will resolve the
matter, concludes that such benefits will be accepted by the authorities. Once considered probable
of not being accepted, management review each material tax benefit and reflects the effect of the
uncertainty in determining the related taxable amounts.

1.13. Foreign Currency Transactions

Transactions and balances

i) Transactions in foreign currencies are initially recorded at the exchange rate prevailing on the date of
transaction.

Monetary assets and liabilities denominated in foreign currencies are translated at the functional
currency closing rates of exchange at the reporting date.

ii) Exchange differences arising on settlement or translation of monetary items are recognised in
Statement of Profit and Loss except to the extent of exchange differences which are regarded as
an adjustment to interest costs on foreign currency borrowings that are directly attributable to the
acquisition or construction of qualifying assets, are capitalised as cost of assets.

iii) Non-monetary items that are measured in terms of historical cost in a foreign currency are recorded
using the exchange rates at the date of the transaction. Non-monetary items measured at fair value
in a foreign currency are translated using the exchange rates at the date when the fair value was
measured. The gain or loss arising on translation of non-monetary items measured at fair value is
treated in line with the recognition of the gain or loss on the change in fair value of the item (i.e.,
translation differences on items whose fair value gain or loss is recognised in Other Comprehensive
Income (OCI) or Statement of Profit and Loss are also recognised in OCI or Statement of Profit and
Loss, respectively).

1.14. Employee Benefit Expense

i) Short-Term Employee Benefits

The undiscounted amount of short-term employee benefits expected to be paid in exchange for the
services rendered by employees are recognised as an expense during the period when the employees
render the services.

A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual
leave and sick/ contingency leave in the year the related service is rendered at the undiscounted
amount of the benefits expected to be paid in exchange for that service.

Accumulated leave, which is expected to be utilised within the next 12 months, is treated as short¬
term employee benefit. The Company measures the expected cost of such absences as the additional
amount that it expects to pay as a result of the unused entitlement that has accumulated at the
reporting date. The Company recognizes expected cost of short-term employee benefit as an expense,
when an employee renders the related service.

The Company treats accumulated leave expected to be carried forward beyond twelve months, as
long-term employee benefit for measurement purposes. Such long-term compensated absences are
provided for based on the actuarial valuation using the projected unit credit method at the reporting
date. Actuarial gains/ losses are immediately taken to the statement of profit and loss and are not
deferred. The obligations are presented as current liabilities in the balance sheet if the entity does not
have an unconditional right to defer the settlement for at least twelve months after the reporting date.

ii) Post-Employment Benefits
Defined Contribution Plans

A defined contribution plan is a post-employment benefit plan under which the Company pays
specified contributions to a separate entity. The Company makes specified monthly contributions
towards Provident Fund. The Company’s contribution is recognised as an expense in the Statement
of Profit and Loss during the period in which the 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.

Defined Benefits Plans

The Company operates a defined benefit gratuity plan, which requires contributions to be made to a
separately administered fund.

The cost of the defined benefit plan and other post-employment benefits and the present value
of such obligations are determined using actuarial valuations being carried out at the end of each
annual reporting period. 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, mortality rates and future pension increases. 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 Company pays gratuity to the employees whoever has completed five years of service with the
Company at the time of resignation/superannuation. The gratuity is paid @15 days salary for every
completed year of service as per the Payment of Gratuity Act, 1972.

The gratuity liability amount is contributed to the approved gratuity fund formed exclusively for
gratuity payment to the employees. The gratuity fund has been approved by the Indian Income Tax
authorities.

The liability in respect of gratuity and other post-employment benefits is calculated using the
Projected Unit Credit Method and spread over the period during which the benefit is expected to be
derived from employees’ services.

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:

Ý The date of the plan amendment or curtailment, and

Ý The date that the Company recognises related restructuring costs.

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

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

Ý Net interest expense or income.

1.15. Revenue from contract with customer

i) Sales of goods

The Company derives revenue primarily from sale of tyre bead wire and other ancillary products.

Revenue from contracts with customers is recognised when control of the goods is transferred to
the customer at an amount that reflects the consideration entitled in exchange for those goods. The
Company is generally the principal in its revenue arrangements as it typically controls the goods
before transferring them to the customer and is exposed to inventory and credit risks. Control is
transferred upon shipment of goods to the customer or when the goods is made available to the
customer, provided transfer of title to the customer occurs and the Company has not retained any
significant risks of ownership or future obligations with respect to the goods shipped. The normal
credit terms range from 0 to 120 days.

Revenue is stated net of goods and service tax and net of returns, chargebacks and rebates. These are
calculated on the basis of the specific terms in the individual contracts.

Revenue is measured at the amount of consideration which the Company expects to be entitled
to in exchange for transferring distinct goods to a customer as specified in the contract, excluding
amounts collected on behalf of third parties (for example taxes and duties collected on behalf of the
government). Consideration is generally due upon satisfaction of performance obligations and a
receivable is recognised when it becomes unconditional.

The Company provides volume rebate to certain customers once the quantity of products purchased
during the period exceeds a threshold specified and also accrues discounts to certain customers
based on customary business practices. Consideration is determined based on its most likely amount.

Revenue from rendering of services is recognised when the performance of agreed contractual task
has been completed.

ii) Interest Income

Interest income from a financial asset is recognised using effective interest method.

Interest income from a financial asset is recognised when it is probable that the economic benefits will
flow to the Company and the amount of income can be measured reliably. Interest income is accrued
on a time basis, by reference to the principal outstanding and at the effective interest rate applicable,
which is the rate that exactly discounts estimated future cash receipts through the expected life of the
financial asset to that asset’s net carrying amount on initial recognition.

iii) Dividends

Dividend income is recognised when the Company’s right to receive the payment has been established,
which is generally when shareholders approve the dividend.

iv) Rental Income

Rental Income is recognised when the Company’s right to receive the payment has been established.

v) Export Incentive

Export incentives receivable are accounted for when the right to receive the credit is established and
there is no significant uncertainty regarding the ultimate collection of export proceeds.

vi) Other Operating Income
vi.a. Insurance Claims

Insurance claims are accounted for based on claims admitted/ expected to be admitted to the
extent that there is no uncertainty in receiving the claims.

vi.b. Sale of Scrap

Revenue from the sale of scrap is recognized at the point of sale when the significant risks and
rewards of ownership have transferred to the buyer. The sale proceeds are recorded under "Other
Operating Income”.

vii) Contract balances
Contract assets

A contract asset is the right to consideration in exchange for goods transferred to the customer. If the
Company performs by transferring goods to a customer before the customer pays consideration or
before payment is due, a contract asset is recognised for the earned consideration that is conditional.

Trade Receivables

A receivable represents the Company’s right to an amount of consideration that is unconditional (i.e.,
only the passage of time is required before payment of the consideration is due). Refer to accounting
policies of financial assets in section (n)(i) Financial instruments - initial recognition and subsequent
measurement.

Contract Liabilities

A contract liability is the obligation to transfer goods or services to a customer for which the Company
has received consideration (or an amount of consideration is due) from the customer. If a customer
pays consideration before the Company transfers goods or services to the customer, a contract liability
is recognised when the payment is made, or the payment is due (whichever is earlier). Contract
liabilities are recognised as revenue when the Company performs under the contract.

Refund liabilities

A refund liability is the obligation to refund some or all of the consideration received (or receivable)
from the customer and is measured at the amount the Company ultimately expects it will have to
return to the customer including volume rebates and discounts. The Company updates its estimates
of refund liabilities at the end of each reporting period.

viii) Costs to fulfil a contract i.e. freight, insurance and other selling expenses are recognised as an expense
in the period in which related revenue is recognised.

1.16. Impairment of non-financial assets

i) The Company assesses at each reporting date as to whether there is any indication that any property,
plant and equipment and intangible assets or group of assets, called Cash Generating Units (CGU)
may be impaired. If any such indication exists the recoverable amount of an asset or CGU is estimated
to determine the extent of impairment, if any. When it is not possible to estimate the recoverable
amount of an individual asset, the Company estimates the recoverable amount of the CGU to which
the asset belongs.

ii) The goodwill on business combinations is tested for impairment annually.

iii) The recoverable amount of an asset or cash generating unit is the greater of its value in use and its
fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to
their present value using a pre-tax discount rate that reflects current market assessments of the time
value of money and the risks specific to the asset or the cash-generating unit for which the estimates
of future cash flows have not been adjusted.

iv) The carrying amounts of the Company’s non-financial assets are reviewed at each reporting date to
determine whether there is any indication of impairment. If any such indication exists, then the asset’s
recoverable amount is estimated in order to determine the extent of the impairment loss, if any.

v) An impairment loss is recognised in the Statement of Profit and Loss to the extent, asset’s carrying
amount exceeds its recoverable amount.

vi) The impairment loss recognised in prior accounting period is assessed at each reporting date for any
indications that the loss has decreased or no longer exists and is reversed if there has been a change
in the estimate of recoverable amount. An impairment loss is reversed only to the extent that the
asset’s carrying amount does not exceed the carrying amount that would have been determined, net
of depreciation or amortisation, if no impairment loss had been recognised.

1.17. Financial Instruments

A contract is recognised as a financial instrument 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 recognised when an entity becomes a party to the contractual

provisions of the instrument.

i) Financial Assets

i.a. Initial recognition and measurement

The classification of financial assets at initial recognition depends on the financial asset’s contractual
cash flow characteristics and the Company’s business model for managing them.

With the exception of trade receivables that do not contain a significant financing component or for
which the Company has applied the practical expedient, the Company initially measures a financial
asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss,
transaction costs.

Trade receivables that do not contain a significant financing component or for which the Company
has applied the practical expedient are measured at the transaction price determined under Ind AS
115. Refer to the accounting policies in section (m) Revenue from contracts with customers.

Financial assets classified and measured at amortised cost are held within a business model with
the objective to hold financial assets in order to collect contractual cash flows while financial assets
classified and measured at fair value through OCI are held within a business model with the objective
of both holding to collect contractual cash flows and selling.

All financial assets and liabilities are initially recognised at fair value. Transaction costs that are directly
attributable to the acquisition or issue of financial assets and financial liabilities, which are not at fair
value through profit or loss, are adjusted to the fair value on initial recognition. Purchase and sale of
financial assets are recognised using trade date accounting.

i.b. Subsequent measurement

For the purpose of subsequent measurement financial assets are classified into three categories:

Ý Financial assets at amortised cost (debt instruments)

Ý Financial assets at fair value through other comprehensive income (FVTOCI)

• with recycling of cumulative gains and losses (debt instruments)

• with no recycling of cumulative gains and losses upon derecognition (equity instruments)

Ý Financial assets at fair value through profit or loss
i.c. Financial assets carried at amortised cost

A financial asset is measured at amortised cost if it is held within a business model whose objective is
to hold the asset in order to collect contractual cash flows and the contractual terms of the financial
asset give rise on specified dates to cash flows that are solely payments of principal and interest 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.

Impairment of investments

The Company reviews it carrying value of investments carried at cost annually, or more frequently
when there is indication for impairment. If the recoverable amount is less than it carrying amount, the
impairment loss is recorded in the Statement of Profit and Loss.

i.d. Financial assets at fair value through other comprehensive income (FVTOCI) and fair value through
profit or loss (FVTPL)

A financial asset not classified as either amortised cost or FVTOCI, is classified as FVTPL.

Financial assets included within the fair value through profit or loss category are measured at fair
value with all the changes in the profit or loss.

Financial assets included within the fair value through other comprehensive income category are
measured at fair value with all the changes in the other comprehensive income.

i.e. Derecognition

A financial asset is primarily derecognised (i.e., removed from the Company’s balance sheet) when:

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

Ý The Company has transferred its rights to receive contractual 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.

On derecognition of a financial asset in its entirety, the difference between the asset’s carrying
amount and the sum of the consideration received and receivable recognised in profit or loss.

i.f. Investment in the nature of equity in subsidiaries

A subsidiary is an entity that is controlled by another entity.

The Company’s investments in its subsidiaries are accounted at cost less impairment.

The Company has elected to measure investment in subsidiary at cost in the separate financial
statements in accordance with the option available in Ind AS 27, ‘Separate Financial Statements’. On
the date of transition, the carrying amount has been considered as deemed cost.

i. g. Impairment of financial assets

In accordance with Ind AS 109, the Company applies ‘Expected Credit Loss’ (ECL) model, for evaluating
impairment of financial assets other than those measured at fair value through profit and loss (FVTPL).

Expected Credit loss 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 Company expects to receive (i.e. all cash
shortfalls). The Company estimates cash flows by considering all contractual terms of the financial
instrument.

ECLs are recognised in two stages. For credit exposures for which there has not been a significant
increase in credit risk since initial recognition, ECLs are provided for credit losses that result from
default events that are possible within the next 12-months (a 12-month ECL). For those credit
exposures for which there has been a significant increase in credit risk since initial recognition, a loss
allowance is required for credit losses expected over the remaining life of the exposure, irrespective of
the timing of the default (a lifetime ECL).

For trade receivables and contract assets, the Company applies a simplified approach in calculating
ECLs. Therefore, the Company does not track changes in credit risk, but instead recognises a loss
allowance based on lifetime ECLs at each reporting date. The Company has established a provision
matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific
to the debtors and the economic environment.

ii. Financial Liabilities
Classification as debt or equity

Debt and equity instruments issued by the Company are classified as either financial liabilities or as
equity in accordance with the substance of the contractual arrangements and the definitions of a
financial liability and an equity instrument.

ii.a. Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity
after deducting all of its liabilities. Equity instruments issued by the Company are recognised at the
proceeds received, net of direct issue costs.

ii.b. Financial liabilities

ii.b.1 Initial recognition and measurement

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

All financial liabilities are initially recognised at fair value and in case of loans, borrowings and payables,
net of directly attributable transaction cost. Fees of recurring nature are directly recognised in the
Statement of Profit and Loss as finance cost.

The Company’s financial liabilities include trade and other payables, loans and borrowings including
bank overdrafts and financial guarantee contracts.

ii.b.2 Subsequent measurement

For purposes of subsequent measurement, financial liabilities are classified as:

Ý Financial liabilities at amortised cost (loans and borrowings)

This is the category most relevant to the Company. After initial recognition, interest-bearing loans
and borrowings are subsequently measured at amortised cost using the EIR method. Gains and
losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR
amortisation process.

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 as finance costs in the
statement of profit and loss.

For trade and other payables maturing within one year from the Balance Sheet date, the carrying
amounts approximate fair value due to the short maturity of these.

ii.b.3Effective interest method

The effective interest method is a method of calculating the amortised cost of a debt instrument and
of allocating interest income over the relevant year. The effective interest rate is the rate that exactly
discounts estimated future cash receipts through the expected life of the debt instrument, or, where
appropriate, a shorter year, to the net carrying amount on initial recognition.

ii.b.4 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 between the carrying amount of the financial liability derecognised and
the consideration paid and payable is recognised in profit or loss.

ii.c. Financial Guarantee Contracts

Financial guarantee contracts are those contracts that require a payment to be made to reimburse
the holder for a loss it incurs because the specified debtor fails to make a payment when due in
accordance with the terms of a debt instrument. Financial guarantee contracts are recognised initially
as a liability at fair value, adjusted for transaction costs that are directly attributable to the issuance of
the guarantee.

Subsequently, the liability is measured at the higher of the amount of loss allowance determined as
per impairment requirements of Ind AS 109 and the amount recognised less, when appropriate, the
cumulative amount of income recognised in accordance with the principles of Ind AS 115.

ii. d. Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the Standalone
balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there
is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.

iii. Derivative financial instruments and Hedge Accounting

The Company uses various derivative financial instruments such as interest rate swaps, currency swaps
and forwards & options to mitigate the risk of changes in interest rates and exchange rates. Such
derivative financial instruments are initially recognised at fair value on the date on which a derivative
contract is entered into and are also subsequently measured at fair value. Derivatives are carried as
financial assets when the fair value is positive and as financial liabilities when the fair value is negative.

Any gains or losses arising from changes in the fair value of derivatives are taken directly to Statement
of Profit and Loss, except for the effective portion of cash flow hedges which is recognised in Other
Comprehensive Income and later to Statement of Profit and Loss when the hedged item affects profit
or loss or treated as basis adjustment if a hedged forecast transaction subsequently results in the
recognition of a non-financial assets or non-financial liability.

iv. Hedges that meet the criteria for hedge accounting are accounted for as follows
iv.a. Cash Flow Hedge

The Company designates derivative contracts or non-derivative financial assets / liabilities as hedging
instruments to mitigate the risk of movement in interest rates and foreign exchange rates for foreign
exchange exposure on highly probable future cash flows attributable to a recognised asset or liability
or forecast cash transactions. When a derivative is designated as a cash flow hedging instrument, the
effective portion of changes in the fair value of the derivative is recognized in the cash flow hedging
reserve being part of other comprehensive income. Any ineffective portion of changes in the fair
value of the derivative is recognised immediately in the Statement of Profit and Loss. If the hedging

relationship no longer meets the criteria for hedge accounting, then hedge accounting is discontinued
prospectively. If the hedging instrument expires or is sold, terminated or exercised, the cumulative
gain or loss on the hedging instrument recognized in cash flow hedging reserve till the period the
hedge was effective remains in cash flow hedging reserve until the underlying transaction occurs.
The cumulative gain or loss previously recognised in the cash flow hedging reserve is transferred to
the Statement of Profit and Loss upon the occurrence of the underlying transaction. If the forecasted
transaction is no longer expected to occur, then the amount accumulated in cash flow hedging
reserve is reclassified in the Statement of Profit and Loss.

iv.b. Fair Value Hedge

The Company designates derivative contracts or non-derivative financial assets / liabilities as hedging
instruments to mitigate the risk of change in fair value of hedged item due to movement in interest
rates and foreign exchange rates.

Changes in the fair value of hedging instruments and hedged items that are designated and qualify
as fair value hedges are recorded in the Statement of Profit and Loss. If the hedging relationship no
longer meets the criteria for hedge accounting, the adjustment to the carrying amount of a hedged
item for which the effective interest method is used is amortised to Statement of Profit and Loss over
the period of maturity.

1.18. Current and Non-current classification

The Company presents assets and liabilities in the Balance Sheet based on current / non-current
classification.

i) An asset is treated as current when it is:

Ý Expected to be realised or intended to be sold or consumed in normal operating cycle;

Ý Held primarily for the purpose of trading;

Ý Expected to be realised within twelve months after the reporting period, or

Ý Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at

least twelve months after the reporting period.

All other assets are classified as non-current.

ii) A liability is current when:

Ý It is expected to be settled in normal operating cycle;

Ý It is held primarily for the purpose of trading;

Ý It is due to be settled within twelve months after the reporting period, or

Ý There is no unconditional right to defer the settlement of the liability for at least twelve months

after the reporting period.

The Company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash
and cash equivalents. The Company has identified twelve months as its operating cycle.

1.19. Earnings Per Share

i) Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to
equity shareholders by weighted average number of equity shares outstanding during the period. The
weighted average number of equity shares outstanding during the period are adjusted for events of
bonus issue; bonus element in a right issue to existing shareholders.

ii) For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable
to equity shareholders and the weighted average number of shares outstanding during the year are
adjusted for the effects of all dilutive potential equity shares.

iii) The number of equity shares and potentially dilutive equity shares are adjusted retrospectively for all
periods presented for any share splits and bonus shares issues including for changes effected prior to
the approval of the financial statements by the Board of Directors.

1.20. Dividend

The Company recognises a liability to pay dividend to equity holders of the Company when the distribution
is authorised, and the distribution is no longer at the discretion of the Company. As per the corporate laws
in India, a distribution is authorised when it is approved by the shareholders. A corresponding amount is
recognised directly in equity.

1.21. Cash and Cash equivalents

i) Cash and Cash equivalents in the balance sheet comprise cash at banks and on hand, short-term,
highly liquid investments with original maturities of three months or less that are readily convertible
to known amounts of cash and which are subject to an insignificant risk of changes in value.

ii) Statement of Cash Flows is prepared in accordance with the Indirect Method prescribed in the Indian
Accounting Standard-7 ‘Statement of Cash Flows’.

1.22. Operating Segments

The operating segments are identified on the basis of business activities whose operating results are
regularly reviewed by the Chief Operating Decision Maker of the Company and for which the discrete
financial information is available. The Company has only one reportable operating segment i.e. "Tyre Bead
Wire”.

The Board of directors of the Company has been identified as the Chief Operating Decision Maker which
reviews and assesses the financial performance and makes the strategic decisions.

1.23. Exceptional items

Exceptional items refer to items of income or expense, including tax items, within the statement of profit
and loss from ordinary activities which are non-recurring and are of such size, nature or incidence that their
separate disclosure is considered necessary to explain the performance of the Company.

1.24. Government Grants

Government grants are recognised where there is reasonable assurance that the grant will be received,
ultimate collection of the grant/subsidy is reasonably certain and all attached conditions will be complied
with. When the grant relates to an expense item, it is recognised as income on a systematic basis over the
periods that the related costs, for which it is intended to compensate, are expensed. When the grant relates
to an asset, it is recognised as reduced depreciation expense in equal amounts over the expected useful
life of the related asset.

When the company receives grants of non-monetary assets, the asset and the grant are recorded at fair
value amounts and released to profit or loss over the expected useful life in a pattern of consumption of the
benefit of the underlying asset i.e. by equal annual instalments.

The government grants in the form of subsidy are presented in the balance sheet by deducting it from the
carrying amount of the eligible assets on a pro rata basis. The grant is recognised in the Statement of Profit
and Loss over the life of a depreciable asset as a reduced depreciation expense.

2) Standards notified but not yet effective

The amendments to the standards that are notified by the Ministry of Corporate Affairs (MCA), but not
yet effective, up to the date of issuance of the Company’s financial statements are disclosed below. The
Company will adopt these amendments to the standards, when they become effective. The Company has
not early adopted any standard, interpretation or amendment that has been issued but is not yet effective.

Amendments to Ind AS 1 - Classification of Liabilities as Current or Non-current and Non-current Liabilities
with Covenants and Ind AS 10 Events after the Reporting Period

Ind AS 10 has been amended to remove the previous treatment under which a lender’s post reporting
date waiver—granted before the financial statements were approved for issue—of a breach of a material
covenant in a long term loan arrangement that occurred on or before the end of the reporting period,
resulting in the liability becoming payable on demand at the reporting date, was regarded as an adjusting
event.

For annual reporting periods beginning on or after 1 April 2026, any breach of a covenant—whether
material or immaterial—occurring on or before the reporting date will, in accordance with Ind AS 1, require
the related liability to be classified as current, unless the lender has granted a waiver of the breach on
or before the reporting date and has agreed not to demand repayment for at least 12 months after the
reporting date as a consequence of the breach. Such a waiver shall be treated as an adjusting event.

The amendments are effective for annual reporting periods beginning on or after 1 April 2026 retrospectively
in accordance with Ind AS 8.

3) Critical Accounting Judgments and key sources of estimation uncertainty

The preparation of the financial statements in conformity with the Ind AS requires management to make
judgments, estimates and assumptions that affect the application of accounting policies and the reported
amounts of assets, liabilities and the accompanying disclosures as at date of the financial statements and
the reported amounts of the revenues and expenses for the years presented. The estimates and associated
assumptions are based on historical experience and other factors that are considered to be relevant.
Actual results may differ from these estimates under different assumptions and conditions. The estimates
and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised if the revision affects only that period or in the
period of the revision and future periods if the revision affects both current and future periods.

i) Key sources of estimation uncertainty

a) Revenue Recognition

The Company’s contracts with customers include promises to transfer goods to the customers.
Judgement is required to determine the transaction price for the contract.

The transaction price could be either a fixed amount of customer consideration or variable
consideration with elements such as schemes, incentives and cash discounts, among others. The
estimated amount of variable consideration is adjusted in the transaction price only to the extent that
it is highly probable that a significant reversal in the amount of cumulative revenue recognised will
not occur and is reassessed at the end of each year.

Estimates of rebates and discounts are sensitive to changes in circumstances and the Company’s past
experience regarding returns and rebate entitlements may not be representative of customers’ actual
returns and rebate entitlements in the future.

b) Depreciation / amortisation and useful lives of property plant and equipment / intangible assets

Property, plant and equipment / intangible assets are depreciated / amortised over their estimated
useful lives, after taking into account estimated residual value. Management reviews the estimated
useful lives and residual values of the assets annually in order to determine the amount of depreciation
/ amortisation to be recorded at each year end.

The useful lives and residual values are based on the Company’s historical experience with similar assets
and take into account anticipated technological changes. The depreciation / amortisation for future periods
is revised if there are significant changes from previous estimates.

c) Recoverability of trade receivable

Judgements are required in assessing the recoverability of overdue trade receivables and determining
whether a provision against those receivables is required. Factors considered include the credit rating
of the counterparty, the amount and timing of anticipated future payments and any possible actions
that can be taken to mitigate the risk of non-payment.

d) Provisions

Provisions and liabilities are recognized in the period when it becomes probable that there will be
a future outflow of funds resulting from past operations or events and the amount of cash outflow
can be reliably estimated. The timing of recognition and quantification of the liability requires the
application of judgment to existing facts and circumstances, which can be subject to change. The
carrying amounts of provisions and liabilities are reviewed regularly and revised to take account of
changing facts and circumstances.

e) Impairment of non-financial assets

The Company assesses the chances of an asset getting impaired on each reporting date. If any
indication exists, the Company estimates the asset’s recoverable amount. An asset’s recoverable
amount is the higher of fair value less costs of disposal of an asset or Cash Generating Unit (CGU) and
its value in use. It is determined for an individual asset, unless the asset does not generate cash inflows
that are largely independent of those from other assets or a group of assets. Where the carrying
amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is
written down to its recoverable amount.

In assessing value in use, the estimated future cash flows are discounted to their present value using
pre-tax discount rate that reflects current market assessments of the time value of money and the
risks specific to the asset. In determining fair value less costs of disposal, recent market transactions
are taken into account, if no such transactions can be identified, an appropriate valuation model is
used.

f) Impairment of financial assets

The impairment provisions for financial assets are based on assumptions about risk of default and
expected cash loss rates. The Company uses judgment in making these assumptions and selecting
the inputs to the impairment calculation, based on Company’s past history, existing market conditions
as well as forward looking estimates at the end of each reporting period.

g) Contingencies

In the normal course of business, contingent liabilities may arise from litigation and other claims
against the Company. Potential liabilities that are possible but not probable of crystalising or are very
difficult to quantify reliably are treated as contingent liabilities. Such liabilities are disclosed in the
notes but are not recognised. The cases which have been determined as remote by the Company are
not disclosed.

Contingent assets are neither recognised nor disclosed in the financial statements unless when an
inflow of economic benefits is probable.

i) Critical accounting judgements

a. Judgements made for Chennai Plant

The company has transferred a class of its assets previously classified under Capital Work in Progress
(CWIP) to Property, Plant, and Equipment (PPE). The determination of which assets are considered
ready for use is made by management and is a critical accounting judgement.

5.1 Property, Plant and Equipment are subject to charge to secure the Company’s borrowings as mentioned
in Note 21.1.

5.2 The amount of borrowing cost capitalised during the year ended March 31, 2026 was INR NIL (for the
year March 31, 2025: INR 1,336 Lakhs {for Green Field Project at Chennai}). The rate used to determine
the amount of borrowing costs eligible for capitalisation is 7.5%, which is the effective interest rate of the
borrowing.

5.3 The amount of expenditures recognised in the carrying amount of Property, Plant and Equipment in the
course of its construction is INR NIL (Previous Year was INR 752 Lakh for Green Field Project at Chennai).

5.4 The amount of contractual commitments for acquisition of Property, Plant and Equipment is INR 4832
Lakh {Including INR 2558 Lakh for Green Field Project at Chennai} (Previous Year INR 5,821 Lakhs
{Including 821 Lakh for Green Field Project at Chennai}).

5.5 The aggregate depreciation has been included under Depreciation and Amortisation Expense in the
Statement of Profit and Loss.(Refer Note 36)

5.6 Freehold land located at Survey no.124/5;126;149/1;150;151/2; Dhannad, Dist:Dhar, Madhya Pradesh,
admeasuring 27,890 Sq. Mtr. (Cost INR 21 Lakh) was revalued to INR 433 Lakhs on the date of transition
i.e. April 01, 2016 and has been considered as the deemed cost in accordance with Para D5 of Ind AS 101-
First-time Adoption.

5.7 On the date of transition to IND AS i.e. on 1^st April 2016, the Company had exercised the option available
in Para D7AA of Ind AS 101- First-time Adoption. Accordingly, the written down value as on April 01, 2016
was considered as the Gross Block, as per the following details:-

5.8 Change in accounting estimates

1 The management performed an operational review of its plant during the financial year 2023-2024,
as a result, the useful life of assets has been considered as higher than the life prescribed by Schedule
II on account of proper use, regular maintenance undertaken by the Company and the condition
of the assets. The effect of this change on actual and expected depreciation expense, is decrease in
depreciation charge in financial year 2023-2024 by INR 61.29 Lakhs.

2 The amount of the effect in future periods is not disclosed because estimating it is impracticable.

6.1 The amount of borrowing cost capitalised during the year ended March 31, 2026 was INR 179 Lakhs
for Wire Rope Project at Pithampur and INR 44 lakhs for Green Field Project at Chennai} (for the year
March 31, 2025: 483 Lakhs{for Green Field Project at Chennai}). The rate used to determine the amount of
borrowing costs eligible for capitalisation is 7.5%, which is the effective interest rate of the borrowing.

6.2 The amount of expenditures recognised in the carrying amount of Property, Plant and Equipment in the
course of its construction is INR 182 Lakhs for Wire Rope Project at Pithampur and INR 252 Lakhs for
Green Field Project at Chennai}(Previous Year was INR 85 Lakh for Green Field Project at Chennai).

7.1 The recoverable amount of Goodwill have been determined based on value in use calculations which uses
cash flow projections covering generally a period of five years which are based on key assumptions such as
margins, expected growth rates based on past experience and Management’s expectations/ extrapolation
of normal increase/ steady terminal growth rate and appropriate discount rates that reflects current market
assessments of time value of money. The management believes that any reasonable possible change in
key assumptions on which recoverable amount is based is not expected to cause the aggregate carrying
amount to exceed the aggregate recoverable amount of the cash generating unit.

7.2 The Company tested the goodwill for impairment as at March 31, 2026 and no impairment has been
identified.

13.1 Inventories are valued at cost or net realisable value whichever is lower. The cost formulas used are
Weighted Average Cost in case of Raw Material (Wire Rods) and First-in First Out (‘FIFO’) in case of Ancillary
Raw Material and Stores & Spares. The cost of inventories comprises all cost of purchase including duties
and taxes (other than those subsequently recoverable from the taxing authorities), conversion cost and
other costs incurred in bringing the inventories to their present location and condition.

13.2Ca rrying amount of inventory hypothecated to secure working capital facilities amounting to INR 6,007
Lakhs (previous year INR 6,978 Lakhs)

13.3The details of charge created on stocks, book debts and other current assets are as per Note 24.1.

13.4Value of inventories above is stated after write down to net realisable value of INR NIL (previous year INR
18 Lakhs). These were recognised as an expense during the year and included in changes in inventories of
finished goods, work-in-progress and stock-in-trade.

14.1The Company has used expected credit loss (ECL) model for assessing the impairment loss. For the purpose,
the Company uses a provision matrix to compute the expected credit loss amount. The provision matrix
takes into account risk factors and historical data of credit losses from various customers.

14.2The expected credit loss allowance has been reassessed based on ageing, historical collection trends and
customer credit evaluation. Consequently, the ECL provision has reduced during the year despite increase
in gross trade receivables.

19.5 Mr. Sunil Chordia and his family along with family trusts and two Companies namely Rajratan Investments
Private Limited (formerly Rajratan Investment Limited) and Rajratan Resources Private Limited hold
65.21% (Previous Year 65.14%) of the paid up share capital and have control over the reporting entity.

19.6Rights, Preference and Restrictions attached to equity shares:

Equity Shares
Voting

The Company has only one class of equity shares having a par value of INR 2/- per share. Each holder of
equity shares is entitled to one vote per share.

Dividends

The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors
is subject to the approval by the shareholders of the company in the ensuing Annual General Meeting. The
distribution will be in proportion to the number of equity shares held by the shareholders.

The Board of Directors have proposed Dividend of INR 2/- per share for the Financial Year 2025-26.
Liquidation

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 shareholding.

Nature and purpose of each reserve
20.1Securities 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
utilization thereof is in accordance with the provisions of Section 52 of the Companies Act, 2013.

20.2General Reserve

The General Reserves have been created out of retained earnings of the Company and are available for any
purpose.

20.3Retained Earnings

The balance in the Retained Earnings represents the accumulated profit after payment of dividend, transfer
to General Reserve and adjustments of actuarial gains/(losses) on Defined Benefit Plans.

20.4 Other Reserves (Revaluation Surplus as on the date of transition to IndAS)

Revaluation Reserve is the amount ascertained due to revaluation of land carried out on the date of transition
to Ind AS and has been recognised as a separate category of the equity and not as part of retained earnings.

21.1 Security:

A) On the Property, Plant and Equipment at Pithampur the following charges have been created:

1 State Bank Of India

1^st Charge on the properties of the Company for its working capital.

2 HDFC Bank Limited

2^nd paripassu charge over entire fixed asset (immovable and movable) and 2^nd paripassu charge over
current asset of the company for term Loan.

1^st charge over fixed asset (movable and immovable) of the Company and 2^nd paripassu charge over
current asset of the company for term loan

2^nd paripassu charge over entire fixed asset (immovable and movable) and 2^nd paripassu charge over
current asset of the company for GECL term Loan.

3 CITI Bank N.A.

2^nd paripassu charge over entire current asset (present & future) of the Company and 1^st paripassu
charge over immovable property and fixed assets of the company for its Term Loan facilities.

4 ICICI Bank Limited

1^st paripassu charge over entire current asset (present & future) of the Company and 2^nd paripassu
charge over immovable property and fixed assets of the company for its working capital facilities.

5 Federal Bank Limited

1^st charge over fixed asset (movable and immovable) of the Company and 2^nd paripassu charge over
current asset of the company for term loan

Details of properties of the Company -

Property (Land and building, or construction there on , present & future)situated at Plot No.200-A,
Industrial Area, Pithampur, Distt.- Dhar (M.P.) admeasuring 15278 Sq. Mtr in the name of Rajratan
Global Wire Ltd.

Property (Land and building, or construction there on , present & future) situated at Plot No.200-B
Industrial Area, Pithampur, Distt.- Dhar (M.P.) admeasuring 18000 Sq. Mtr in the name of Rajratan
Global Wire Ltd.

Property (Land and building, or construction there on , present & future)situated at Plot No.199,
Industrial Area, Sector-A, Pithampur, Distt.- Dhar (M.P.) admeasuring 15700 Sq. Mtr. in the name of
Rajratan Global Wire Ltd.

Property (Land and building, or construction there on, present & future)situated at Survey No. 149/2
Area 0.209 Hectare, Situated at Dhanadkhurd, Distt.- Dhar (M.P.) admeasuring 0.209 Hectare in the
name of Rajratan Global Wire Ltd.

Property (Land and building, or construction there on , present & future)situated at Survey No. 149/3
Area 0.104 Hectare, Situated at Dhanadkhurd, Distt.- Dhar (M.P.) admeasuring 0.104 Hectare in the
name of Rajratan Global Wire Ltd.

Property (Land and building, or construction there on , present & future)situated at Survey No.149/4,
Situated at Dhanadkhurd, Distt.- Dhar (M.P.) admeasuring 0.105 Hectare in the name of Rajratan
Global Wire Ltd.

Property (Land and building, or construction there on , present & future)situated at Survey No.145,
Situated at Dhanadkhurd, Distt.- Dhar (M.P.) admeasuring 0.167 Hectare in the name of Rajratan
Global Wire Ltd.

Property (Land and building, or construction there on , present & future)situated at Survey No.146,
Situated at Dhanadkhurd, Distt.- Dhar (M.P.) admeasuring 0.439 Hectare in the name of Rajratan
Global Wire Ltd.

Property (Land and building, or construction there on , present & future)situated at Survey No. 124/5
(0.490 Hec.), 126 (0.784), 149/1 (1.045), 150 (0.219), 151/2 (0.251), Village Dhannadkhurd Tehsil &
District Dhar, M.P. total admeasuring 2.789 Hec. in the name of Rajratan Global Wire Ltd.

B) On the Property, Plant and Equipment at Chennai following charges have been created:

1 Kotak Mahindra Bank Limited

2^nd paripassu hypothecation charge to be shared with HDFC Bank on all existing and future current
assets of the company at Chennai Unit.

1^st paripassu hypothecation charge to be shared with HDFC Bank on all existing and future Moveable
Fixed Assets of the Company at Chennai Unit.

1^st pari passu Equitable/ Registered mortgage charge with HDFC Bank on immoveable properties
being land and building situated at Plot no. D-1/2, SIPCOT industrial Park, Vallam Vadagal (phase II),
Kanchipuram District, Tamil Nadu belonging to the Company.

2 HDFC Bank Limited

2^nd paripassu hypothecation charge to be shared with Kotak Mahindra Bank Ltd. on all existing and
future current assets of the Company at Chennai Unit.

1^st paripassu hypothecation charge to be shared with Kotak Mahindra Bank Ltd. on all existing and
future Moveable Fixed Assets of the Borrower at Chennai Unit.

1^st charge of HDFC Bank on paripassu basis with Kotak Bank by way of equitable mortgage on industrial
factory land and building proposed to be set up at lease hold Plot No. D-1/2, SIPCOT industrial Park,
Vallam Vadagal (phase II), (underdeveloped) Kanchipuram District, Tamil Nadu

3 ICICI Bank Limited

1^st paripassu charge over entire current asset (present & future) of the Company and 2^nd paripassu
charge over immovable property and fixed assets of the company for its working capital facilities.

Details of properties of the Company at Chennai -

Proposed to be set up at lease hold Plot No. D-1/2, SIPCOT industrial Park, Vallam Vadagal (phase II),
(underdeveloped) Kanchipuram District, Tamil Nadu

24.1 Security:

A) On the Property, Plant & Equipment and Current Assets at Pithampur

1 State Bank of India

1^st Charge on the properties of the Company for its working capital.

2 HDFC Bank Limited

1^st paripassu charge over entire current asset (present & future) of the Company and 2^nd paripassu
charge over fixed assets of the company for its working capital facilities.

3 Citi Bank NA

1^st paripassu charge over entire current asset (present & future) of the Company and 2^nd paripassu
charge over immovable property and fixed assets of the company for its working capital facilities

2^nd paripassu charge over immovable property and fixed assets of the company for its SBLC facilities
on reciprocal basis.

4 ICICI Bank Limited

1^st paripassu charge over entire current asset (present & future) of the Company and 2^nd paripassu
charge over immovable property and fixed assets of the company for its working capital facilities.

5 Federal Bank Limited

1^st charge over fixed asset (movable and immovable) of the Company and 2^nd paripassu charge over
current asset of the company for term loan

Details of properties of the Company at Pithampur

Property (Land and building, or construction there on , present & future)situated at Plot No.200-A,
Industrial Area, Pithampur, Distt.- Dhar (M.P.) admeasuring 15278 Sq. Mtr in the name of Rajratan
Global Wire Ltd.

Property (Land and building, or construction there on , present & future) situated at Plot No.200-B
Industrial Area, Pithampur, Distt.- Dhar (M.P.) admeasuring 18000 Sq. Mtr in the name of Rajratan
Global Wire Ltd.

Property (Land and building, or construction there on , present & future)situated at Plot No.199,
Industrial Area, Sector-A, Pithampur, Distt.- Dhar (M.P.) admeasuring 15700 Sq. Mtr. in the name of
Rajratan Global Wire Ltd.

Property (Land and building, or construction there on, present & future)situated at Survey No. 149/2
Area 0.209 Hectare, Situated at Dhanadkhurd, Distt.- Dhar (M.P.) admeasuring 0.209 Hectare in the
name of Rajratan Global Wire Ltd.

Property (Land and building, or construction there on , present & future)situated at Survey No. 149/3
Area 0.104 Hectare, Situated at Dhanadkhurd, Distt.- Dhar (M.P.) admeasuring 0.104 Hectare in the
name of Rajratan Global Wire Ltd.

Property (Land and building, or construction there on , present & future)situated at Survey No.149/4,
Situated at Dhanadkhurd, Distt.- Dhar (M.P.) admeasuring 0.105 Hectare in the name of Rajratan
Global Wire Ltd.

Property (Land and building, or construction there on , present & future)situated at Survey No.145,
Situated at Dhanadkhurd, Distt.- Dhar (M.P.) admeasuring 0.167 Hectare in the name of Rajratan
Global Wire Ltd.

Property (Land and building, or construction there on , present & future)situated at Survey No.146,
Situated at Dhanadkhurd, Distt.- Dhar (M.P.) admeasuring 0.439 Hectare in the name of Rajratan
Global Wire Ltd.

Property (Land and building, or construction there on , present & future)situated at Survey No. 124/5
(0.490 Hec.), 126 (0.784), 149/1 (1.045), 150 (0.219), 151/2 (0.251), Village Dhannadkhurd Tehsil &
District Dhar, M.P. total admeasuring 2.789 Hec. in the name of Rajratan Global Wire Ltd.

B) On stocks, receivables & Other current assets of Chennai the following charges have been created:

1 Kotak Mahindra Bank Limited

1^st paripassu hypothecation charge to be shared with ICICI Bank Ltd on all existing and future current
assets of the Company at Chennai Unit.

2^nd paripassu hypothecation charge to be shared with HDFC Bank Ltd & ICICI Bank Ltd on all existing
and future Moveable Fixed Assets of the Company at Chennai Unit.

2^nd paripassu Equitable/ Registered mortgage charge with HDFC Bank Ltd & ICICI Bank Ltd on
immoveable properties being land and building situated at Plot no. D-1/2, SIPCOT industrial Park,
Vallam Vadagal (phase II), (underdeveloped) Kanchipuram District, Tamil Nadu belonging to the
Company at Chennai Unit.

ICICI Bank Limited

1^st paripassu hypothecation. on all existing and future current assets of the Company.

Details of properties loacted of the Company at Chennai

Proposed to be set up at lease hold Plot No. D-1/2, SIPCOT industrial Park, Vallam Vadagal (phase II),
(underdeveloped) Kanchipuram District, Tamil Nadu

24.2 Other Loans

Other loans payable on demand and advances received from related parties/Directors are unsecured.

24.3 The quarterly returns / statements filed by the Company with the banks are in agreement with the books
of account except as given in Note 50.2

30.4Contract assets are initially recognised for revenue from sale of goods.

Contract liabilities are on account of the upfront revenue received from customer for which performance
obligation has not yet been completed.

The performance obligation is satisfied when control of the goods or services are transferred to the
customers based on the contractual terms. Payment terms with customers vary depending upon the
contractual terms of each contract.

37.3The company has recognised INR 101 Lakhs (Previous Year INR 4 Lakhs) as rent expenses during the year
which pertains to short term lease which was not recognised as part of assets.

38. Goodwill

The erstwhile Wholly Owned Subsidiary - Cee Cee Engineering Industries Private Limited was merged
vide order dated January 16, 2018 of the Hon'ble National Company Law Tribunal, Ahmedabad Bench
with April 01, 2017 as the Appointed Date. As per the approved scheme all the assets and liabilities of the
Wholly Owned Subsidiary appearing in the Balance Sheet as at March 31, 2017, drawn up as per Indian
Accounting Standards (Ind AS), have been merged with the Holding Company as on April 01, 2017. The
Goodwill on amalgamation is carried in the financial statements and is tested for impairment at each
reporting date. No impairment has been recognised till date.

39. Subsidy

39.1Madhya Pradesh Industrial Development Corporation Limited (MPIDCL), a Government of Madhya Pradesh
Undertaking, has approved a sum of INR 1,974 Lakhs (INR One Thousand Nine Hundred Seventy Four
Lakhs Only) as Investment Promotion Assistance against eligible investment of INR 5,235 Lakhs (INR Five
Thousand Two Hundred Thirty Five Lakhs Only). A sum of INR 318 Lakhs (INR Three Hundred Eighteen

39. Subsidy (Contd.)

Lakhs Only) was further sanctioned on additional investment of INR 1,790 Lakhs (INR One Thousand
Seven Hundred Ninety Lakhs Only) made within one year from the date of start of commercial production.
The total assistance is to be spread over a period of seven years, subject to compliance with the terms and
conditions. The subsidy sanctioned in an accounting year is reduced from the carrying cost of the eligible
assets (Plant & Machinery and Factory Building on pro-rata basis) and such reduced cost of the assets are
depreciated over their useful life.

41. Dividend:

During the year ended March 31, 2026, on account of the final dividend for Financial Year 2024-25, the
Company has incurred a net cash outflow of Rs. 1,015 Lakhs (Previous Year Rs. 1,015 Lakhs).

The Board of Directors have proposed dividend of INR 2/- per equity share subject to approval by the
shareholders in the general meeting. If approved, this will result in payment of dividend of INR 1,015 Lakhs.

42. Related Parties Disclosures

As per Ind AS 24, the disclosures of transactions with the related parties are given below:

42.6Terms and Conditions
Sales:

The sales to related parties are made on terms equivalent to those that prevail in arm’s length transactions and
in the ordinary course of business. Sales transactions are based on prevailing price lists and memorandum
of understanding signed with related parties. For the year ended March 31, 2026, the Company has not
recorded any impairment of receivables relating to amounts owed by related parties.

Purchases:

The purchases from related parties are made on terms equivalent to those that prevail in arm’s length
transactions and in the ordinary course of business. Purchase transactions are made on normal commercial
terms and conditions and market rates.

Guarantees to subsidiaries:

Guarantees provided to the lenders of the subsidiaries/joint venture are for availing term loans and working
capital facilities from the lender banks.

The transactions other than mentioned above are also in the ordinary course of business and at arms’
length basis.

44. Contingent Liabilities And Commitments

44.1Claims against the Company/disputed liabilities not acknowledged as debts

a. Madhya Pradesh Paschim Khestra Vidhyut Vitran Company Limited (MPPKVVCL) during the
financial year 2018-19 raised a supplementary bill on the Company for INR 22,617,697/- for non¬
adjustment of solar units in Time Of Day (TOD) manner. The Company has not accepted the demand
and is contesting the same. The case is sub-judice before Division Bench of MP High Court, Indore.
During 2020-21 a sum of INR 6,596,829/- and during 2019-20 a sum of INR 16,020,868/- was
deposited with MPPKVVCL. Out of the aforesaid total demand raised, the Company has agreements
with the suppliers of the solar power to reimburse INR 19,028,356/-. Accordingly. the sum of INR
19,028,356/- is classified as current asset. The balance amount of INR 3,589,341/- was charged to
Statement of Profit & Loss in the financial year 2020-21. "

Contingent Liabilities

The claims against the Company not acknowledged as debts includes disputed liability in respect of
Income Tax matters amounted to INR 6 Lakhs (Previous Year INR 10 Lakhs). The claims against the
Company majorly represents demand arising on complition of assessment proceedings on account
of disallowances of deductions claimed on CSR contribution u/s 80G and addition of Provision of
doubtful debts twice by CPC.

The disputed tax liability of INR 47 Lakhs (Previous Year INR 47 Lakhs) and INR 8 Lakhs (Previous
Year INR 8 Lakh) under Central Excise and Customs and Service Tax Act, respectively is on account of
availment of Input Tax credit on certain activities not realted to Manufacturing.

The disputed liability of INR NIL (Previous Year INR 2 Lakhs) under the Civil court Dindoshi, Mumbai is
of a civil suit filed on the company due to cancellation of a Transport contract.

45. Capital Management

45.1The Company’s capital management objectives are:

a. Maintain financial strength to attain AAA ratings domestically and investment grade ratings
internationally.

b. Ensure financial flexibility and diversify sources of financing and their maturities to minimize liquidity
risk while meeting investment requirements.

c. Proactively manage group exposure in forex, interest and commodities to mitigate risk to earnings.

d. Leverage optimally in order to maximize shareholder returns while maintaining strength and flexibility
of the Balance Sheet.

This framework is adjusted based on underlying macro-economic factors affecting business
environment, financial market conditions and interest rates environment.

The Company monitors capital on the basis of the carrying amount of debt less cash and cash
equivalents, bank balances (excluding earmarked balances with banks.

Ensure financial flexibility and diversify sources of financing and their maturities to minimize liquidity
risk while meeting investment requirements.

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

(a) recognized and measured at fair value and

(b) measured at amortized 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 its financial instruments into the three levels prescribed under the accounting standard
which are as below:

Level 1: This hierarchy includes financial instruments measured using quoted prices. This includes
listed equity instruments that have quoted price. The fair value of all equity instruments which are
traded in the stock exchanges is valued using the closing price as at the reporting year.

Level 2: The fair value of financial instruments that are not traded in an active market is determined
using valuation techniques which maximize 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.

(ii) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

a) the fair values of the FVTOCI investments are derived from quoted market prices in active
markets.

b) the fair values of the interest-bearing borrowings and loans are determined by using discounted
cash flow method using discount rate that reflects the issuer’s borrowing rate as at the end of the
reporting year. The own nonperformance risk was assessed to be insignificant.

c) the fair value of the remaining financial instruments is determined using discounted cash
flow analysis using rates currently available for debt on similar terms, credit risk and remaining
maturities.

46.2The fair value of Forward Foreign Exchange contracts is determined using forward exchange rates at the
Balance Sheet date.

46.3All foreign currency denominated assets and liabilities are translated using exchange rate at reporting
date.

47. Financial Risk Management:

The Company’s activities expose it to a variety of financial risks, including market risk, credit risk and
liquidity risk.

The Company’s risk management assessment and policies and processes are established to identify and
analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks
and compliance with the same.

Risk assessment and management policies and processes are reviewed regularly to reflect changes in
market conditions and the Company’s activities.

47.1Credit Risk

Credit risk is the risk that a customer or counterparty to a financial instrument fails to meet its contractual
obligations causing financial loss to the company.

Credit risk arises mainly from the outstanding receivables from customers.

Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring
the creditworthiness of counterparty to which the Company grants credit terms in the normal course of
business.

The Company has used expected credit loss (ECL) model for assessing the impairment loss.

For the purpose, the Company uses a provision matrix to compute the expected credit loss amount.

The provision matrix takes into account external and internal risk factors and historical data of credit losses
from various customers.

47.2Liquidity Risk

Liquidity risk arises from the Company’s inability to meet its financial obligation as it becomes due.

The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient
liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring
unacceptable losses or risk to the Company’s reputation.

The amount of guarantees/standby letter of credit given on behalf of subsidiaries included in Note 44
represents the maximum amount the Company could be forced to settle for the full guaranteed amount.
Based on the expectation at the end of the reporting year, the Company considers that it is more likely than
not that such an amount will not be payable under the arrangement.

47.3Market risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse
changes in market rates and prices (such as interest rates and foreign currency exchange rates) or in the
price of market risk-sensitive instruments as a result of such adverse changes in market rates and prices.

Market risk is attributable to all market risk-sensitive financial instruments, all foreign currency receivables
and payables and all short term and long term debt.

The Company is exposed to market risk primarily related to foreign exchange rate risk.

Thus, the Company’s exposure to market risk is a function of investing and borrowing activities and revenue
generating and operating activities in foreign currencies.

47.4Foreign exchange risk:

The Company’s foreign exchange risk arises from its foreign operations, foreign currency revenues and
expenses, (primarily in US Dollars and Euros).

As a result, if the value of the Indian rupee appreciates relative to these foreign currencies, the Company’s
revenues and expenses measured in Indian rupees may decrease or increase and vice-versa.

The exchange rate between the Indian rupee and these foreign currencies have changed substantially in
recent periods and may continue to fluctuate substantially in the future.

Consequently, the Company uses both derivative and non-derivative financial instruments, such as foreign
exchange forward contracts, option contracts, currency swap contracts and foreign currency financial
liabilities, to mitigate the risk of changes in foreign currency exchange rates in respect of its highly probable
forecasted transactions and recognised assets and liabilities.

The exposure to foreign currency for all other currencies are not material.

The net exposures have natural hedges in the form of future foreign currency earnings and earnings
linked to foreign curreny.

b Sensitivity

For the years ended March 31, 2026 and March 31, 2025, every 1% strengthening of the Indian
rupee against foreign currency (US Dollar) for the above mentioned financial assets/liabilities would
decrease the Company’s profit and equity approximately INR 18 Lakhs and decrease the Company’s
profit & equity by approximately INR 8 Lakhs respectively.

For the years ended March 31, 2026 and March 31, 2025, every 1% strengthening of the Indian rupee
against foreign currency (Rubel) for the above mentioned financial assets/liabilities would decrease
the Company’s profit and equity approximately INR 1 Lakhs and decrease the Company’s profit &
equity by approximately INR NIL respectively.

For the years ended March 31, 2026 and March 31, 2025, every 1% strengthening of the Indian rupee
against foreign currency (Euro) for the above mentioned financial assets/liabilities would decrease the
Company’s profit and equity approximately INR NIL and decrease the Company’s profit & equity INR
0.22 Lakh respectively.

A 1% weakening of the Indian rupee and the respective currencies would lead to an equal but opposite
effect.

47.5Interest rate risk

The Company has loan facilities on floating interest rate, which exposes the Company to risk of changes in
interest rates. The Company’s Finance Department monitors the interest rate movement and manages the
interest rate risk by evaluating interest rate swaps etc. based on the market / risk perception.

For the years ended March 31, 2026 and March 31, 2025, every 1% change in interest rate for the above
mentioned financial liabilities would decrease the Company’s profit & equity by approximately INR
2,75,99,907/- and decrease the Company’s profit & equity by approximately INR 1,84,67,387/- respectively.

A 1% increase in interest rate would lead to an equal but opposite effect.

As at March 31, 2026 and March 31, 2025, the Company has loan facilities which are either on fixed
interest rates or are managed by interest rate swaps, hence the Company is not exposed to interest rate
risk.

47.6Commodity rate risk

Exposure to market risk with respect to commodity prices primarily arises from the Company’s purchases
of raw materials.

These are commodity products, whose prices may fluctuate significantly over short periods of time.

The prices of the Company’s raw materials generally fluctuate in line with commodity cycles, although the
prices of raw materials used in the Company’s business are generally more volatile.

Cost of raw materials forms the largest portion of the Company’s cost of revenues.

Commodity price risk exposure is evaluated and managed through operating procedures and sourcing
policies.

The company’s commodity risk is managed through well-established trading operations and control
processes.

In accordance with the risk management policy, the Company carefully caliberates the timing and the
quantity of purchase.

As of March 31, 2026 and March 31, 2025, the Company had not entered into any material derivative
contracts to hedge exposure to fluctuations in commodity prices.

47.8Interest rate benchmark reforms

The Company does not have any financial instruments which are subject to benchmark reforms.

The Company does not have any risk of being exposed to interest rate benchmark reforms.

48. Employee benefits:

48.1Defined contribution plan

Contributions are made to Regional Provident Fund (RPF), Family Pension Fund, Employees State Insurance
Scheme (ESIC) and other Funds which covers all regular employees.

While both the employees and the Company make predetermined contributions to the Provident Fund and
ESIC, contribution to the Family Pension Fund and other Statutory Funds are made only by the Company.

The contributions are normally based on a certain percentage of the employee’s salary.

Amount recognised as expense in respect of these defined contribution plans, aggregate to INR 148 Lakhs
(March 31, 2025 : INR 116 Lakhs).

48.2Employee benefit plans:

Defined benefit plan
Gratuity

In respect of Gratuity, a defined benefit plan, contributions are made to LIC’s Recognised Group Gratuity
Fund Scheme.

It is governed by the Payment of Gratuity Act, 1972.

Under the Gratuity Act, employees are entitled to specific benefit at the time of retirement or termination
of the employment on completion of five years or death while in employment.

The level of benefit provided depends on the member’s length of service and salary at the time of
retirement/termination age.

Provision for gratuity is based on actuarial valuation done by an independent actuary as at the year end.

Each year, the Company reviews the level of funding in gratuity fund and decides its contribution.

The Company aims to keep annual contributions relatively stable at a level such that the fund assets meets
the requirements of gratuity payments in short to medium term.

48. Employee benefits: (Contd.)

Risks

These plans typically expose the Company to actuarial risks such as: investment risk, interest rate risk,
longevity risk and salary risk.

i) Investment risk - The present value of the defined benefit plan liability is calculated using a discount
rate determined by reference to the market yields on government bonds denominated in Indian
Rupees.

If the actual return on plan asset is below this rate, it will create a plan deficit.

ii) Interest rate risk - A decrease in the bond interest rate will increase the plan liability. However, this will
be partially offset by an increase in the return on the plan’s debt investments.

iii) Longevity risk - The present value of the defined benefit plan liability is calculated by reference to the
best estimate of the mortality of plan participants both during and after their employment.

An increase in the life expectancy of the plan participants will increase the plan’s liability.

iv) Salary risk - The present value of the defined benefit plan liability is calculated by reference to the
future salaries of plan participants.

As such, an increase in the salary of the plan participants will increase the plan’s liability.

3. The Company is not declared a wilful defaulter by any Bank or Financial Institution or any other lender.

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

5. No charges of satisfaction are pending for registration with the Registrar of Companies (ROC).

6. The Company has two subsidiaries which are wholly owned subsidiaries. The clause (87) of section 2 of
the Companies Act, 2013 read with the Companies (Restriction on Number of Layers) Rules, 2017 is
complied with.

7. The Company has not granted any loans or advances in the nature of loans to promoters, directors and
KMPs, either severally or jointly with any other person.

8. During the year no Scheme of Arrangement has been formulated by the Company/pending with
competent authority.

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

50. Additional Regulatory Information:- (Contd.)

10. No funds have been received by the Company from any person(s) or entity(ies), including foreign entities
("Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company
shall, whether, 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.

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

12. The Company has been sanctioned Term loans from HDFC Bank Ltd for INR 4000 Lakhs for Capex
during the year on the basis of security of fixed assets and current assets.

13. Title deeds of immovable properties are held in the name of Company.

14. There are no investment in properties

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

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

17. During the year, the Company has not issued any securities.

18. The amount borrowed from Banks and Financial Institution have been used for the specific purpose it
was taken.

51. Operating Segments

In accordance with Ind AS 108 "Operating Segments”, segment information has been given in the
consolidated Ind AS financial statements, and therefore, no separate disclosure on segment information is
given in these financial statements. The Company has identified "Tyre Bead Wire" as the single operating
segment for the continued operations in the standalone and consolidated financial statement as per IndAS
108- Operating Segments.

51.1Customers contributing more than 10.0% of total revenues

Revenues from three customers of bead wire segment amounting to Rs. 38,981 Lakhs (Previous Year Rs.
36,903 Lakhs) exceeding 10% of the total revenue of the Company.

52. Rounding off

The figures appearing in financial statements haves been rounded off to the nearest lakhs, as required by
General Instructions for preparation of Financial Statements in Division II Schedule III to the Companies
Act, 2013.

53. Approval of Financial Statements

The Financial Statements were approved for issue by Board of directors in its meeting held on April 21,
2026.