1.11 Provisions and contingent liabilitiesa) Provisions

Provisions for legal claims, quality claims and
volume discounts are recognised when the
Company has a present legal or constructive
obligation as a result of past events, it is
probable that an outflow of resources will be
required to settle the obligation and the amount
can be reliably estimated. Provisions are not
recognised for future operating losses.
Provisions for restructuring are recognised by
the Company when it has developed a detailed
formal plan for restructuring and has raised a
valid expectation in those affected that the
Company will carry out the restructuring by
starting to implement the plan or announcing its
main features to those affected by it. The
measurement of provision for restructuring
includes only direct expenditures arising from
the restructuring, which are both necessarily
entailed by the restructuring and not associated
with the ongoing activities of the Company.

Where there are a number of similar
obligations, the likelihood that an outflow will
be required in settlement is determined by
considering the class of obligations as a whole. A
provision is recognised even if the likelihood of
an outflow with respect to any one item
included in the same class of obligations may be
small.

Provisions are measured at the nominal or
present value of management's best estimate of
the expenditure required, taking into account
the risks and uncertainties surrounding the
obligation, to settle the present obligation at the
end of the reporting period. The discount rate
used to determine the present value is a pre-tax
rate that reflects current market assessments of
the time value of money and the risks specific to
the liability. The increase in the provision due to
the passage of time is recognised as interest
expense.

b) Contingent liabilities

Contingent liabilities are disclosed when there is
a possible obligation arising from past events
the existence of which will be confirmed only by
the occurrence or non-occurrence of one or
more uncertain future events not wholly within
the control of the Company or a present
obligation that arises from past events where it
is either not probable that an outflow of
resources will be required to settle or a reliable
estimate of the amount cannot be made.

c) Contingent Assets

Contingent Assets are disclosed, where an
inflow of economic benefits is probable. The
Company shall not recognised a contingent
asset unless the recovery is virtually certain.

1.12 Exceptional items

Exceptional items are items of income or expense
recorded in the year in which they have been
determined by management as being material by
their size or incidence in relation to the standalone
financial statements and are presented separately
within the results of the Company. The determination
of which items are disclosed as exceptional items
affect the presentation of profit for the year and
requires a degree of judgment.

Note 1B: Other Accounting Policies

This Note provides a list of the other accounting
policies adopted in the preparation of these
standalone financial statements. These policies have
been consistently applied to all the years presented,
unless otherwise stated.

1.13 Contributed Equity

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

1.14 Dividends

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

1.15 Government grants

Grants from the government are recognised at their
fair value where there is a reasonable assurance that
the grant will be received and the Company will
comply with all attached conditions.

Government grants relating to income are deferred
and recognised in the profit or loss over the period
necessary to match them with the costs that they are
intended to compensate and presented within other
income.

Government grants relating to the purchase of
property, plant and equipment are included in
liabilities as deferred income and are credited to profit
or loss over the periods and in proportions in which
depreciation expense on those assets is recognised.

1.16 Earnings per share
Basic earnings per share

Basic earnings per share is calculated by dividing the
profit attributable to owners of the Company by the
weighted average number of equity shares
outstanding during the financial year, adjusted for
bonus elements in equity shares issued during the
year and excluding treasury shares (Note 42).

Diluted earnings per share

Diluted earnings per share adjusts the figures used in
the determination of basic earnings per share to take
into account the after income tax effect of interest and

other financing costs associated with dilufi've
potenfi'al equity shares, and the weighted average
number of addifional equity shares that would have
been outstanding assuming the conversion of all
dilufi've potenfi'al equity shares.

1.17 Impairment of assets

Assets are tested for impairment whenever events or
changes in circumstances indicate that the carrying
amount may not be recoverable. An impairment loss
is recognised for the amount by which the asset's
carrying amount exceeds its recoverable amount.

The recoverable amount is the higher of an asset's fair
value less costs of disposal and value in use. For the
purposes of assessing impairment, assets are grouped
at the lowest levels for which there are separately
idenfifiable cash inflows which are largely
independent of the cash inflows from other assets or
groups of assets (cash-generafing units). Non¬
financial assets that suffered an impairment are
reviewed for possible reversal of the impairment at
the end of each reporting period.

An impairment loss or a reversal of an impairment loss
is immediately recognised in the standalone
statement of profit and loss.

1.18 Non-current assets held for sale

Non-current assets are classified as held for sale if
their carrying amount will be recovered principally
through a sale transacfion rather than through
confinuing use and a sale is considered highly
probable. They are measured at the lower of their
carrying amount and fair value less costs to sell.

An impairment loss is recognised for any initial or
subsequent write-down of the assets to fair value less
costs to sell. A gain is recognised for any subsequent
increase in fair value less costs to sell, but not in excess
of any cumulafive impairment loss previously
recognised. A gain or loss not previously recognised
by the date of the sale of the non-current assets is
recognised at the date of de-recognition.

Non-current assets are not depreciated or amorfised
while they are classified as held for sale.

Non-current assets classified as held for sale are
presented separately from the other assets in the
balance sheet.

1.19 Financial Instruments

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

Investments and Other Financial Assetsa) Classification

The Company classifies its financial assets in the
following measurement categories:

• Those to be measured subsequently at fair
value (either through other comprehensive
income, or through profit or loss), and

• Those measured at amorfised cost.

The classificafion depends on the enfity's
business model for managing the financial
assets and the contractual terms of the
cash flows.

For assets measured at fair value, gains and
losses will either be recorded in profit or loss or
other comprehensive income.

For investments in debt instruments,
recognifion will depend on the business model
in which the investment is held.

For investments in equity instruments,
recognifion will depend on whether the
Company has made an irrevocable elecfion at
the fime of initial recognition to account for the
equity investment at fair value through other
comprehensive income.

The Company reclassifies debt investments
when and only when its business model for
managing those assets changes.

b) Recognition

Regular way purchases and sales of financial
assets are recognised on trade-date, the date on
which the company commits to purchase or sale
the financial asset.

c) Measurement

At inifial recognifion, the Company measures a
financial asset (excluding trade receivables
which do not contain a significant financing
component) at its fair value plus, in the case of a
financial asset not at fair value through profit or
loss, transacfion costs that are directly
attributable to the acquisition of the financial
asset. Transaction costs of financial assets

carried at fair value through profit or loss are

expensed in profit or loss.

(i) Debt instruments:

Subsequent measurement of debt
instruments depends on the Company's
business model for managing the asset and
the cash flow characteristics of the asset.
There are three measurement categories
into which the Company classifies its debt
instruments:

• Amortised cost:

Assets that are held for collection of
contractual cash flows where those cash
flows represent solely payments of
principal and interest are measured at
amortised cost. Interest income from these
financial assets is included in finance
income using the effective interest rate
method. Any gain or loss arising on
derecognition is recognised directly in
profit or loss and presented in other
gains/(losses). Impairment losses are
presented as separate line item in the
standalone statement of profit and loss.

• Fair value through other comprehensive
income (FVOCI):

Assets that are held for collection of
contractual cash flows and for selling the
financial assets, where the assets' cash
flows represent solely payments of
principal and interest, are measured at fair
value through other comprehensive
income (FVOCI). Movements in the
carrying amount are taken through OCI,
except for the recognition of impairment
gains or losses, interest income and foreign
exchange gains and losses which are
recognised in profit and loss. When the
financial asset is derecognised, the
cumulative gain or loss previously
recognised in OCI is reclassified from
equity to profit or loss and recognised in
other expenses or other incomes, as
applicable. Interest income from these
financial assets is included in other income
using the effective interest rate method.
Foreign Exchange gains and losses are
presented in other gains and losses and
impairment expenses in other expenses.

• Fair value through profit or loss:

Assets that do not meet the criteria for
amortised cost or FVOCI are measured at
fair value through profit or loss. A gain or
loss on a debt investment that is
subsequently measured at fair value
through profit or loss and is not part of a
hedging relationship is recognised in profit
or loss and presented net in the standalone
statement of profit and loss within other
expenses or other incomes, as applicable in
the period in which it arises. Interest
income from these financial assets is
included in other income.

(ii) Equity instruments:

The Company measures all equity investments
at fair value. Where the Company's
management has elected to present fair value
gains and losses on equity investments in other
comprehensive income, there will be no
subsequent reclassification of fair value gains
and losses to profit or loss. Dividends from such
investments are recognised in profit or loss as
other income when the Company's right to
receive payments is established.

Changes in the fair value of financial assets at
fair value through profit or loss are recognised
in the standalone statement of profit and loss.
Impairment losses (and reversal of impairment
losses) on equity investments measured at
FVOCI are not reported separately from other
changes in fair value.

d) Impairment of financial assets

The Company assesses on a forward-looking
basis the expected credit loss associated with its
assets carried at amortised cost and FVOCI debt
instruments. The impairment methodology
applied depends on whether there has been a
significant increase in credit risk. Note 39 details
how the Company determines whether there
has been a significant increase in credit risk.

For trade receivables only, the Company applies
the simplified approach permitted by Ind AS
109 Financial Instruments, which requires
expected lifetime losses to be recognised from
initial recognition of the receivables.

e) Derecognition of financial assets revenue
recognition

A financial asset is derecognised only when

• the Company has transferred the rights to
receive cash flows from the financial asset
or

• it retains the contractual rights to receive
the cash flows of the financial asset, but
assumes a contractual obligation to pay
the cash flows to one or more recipients.

Where the entity has transferred an asset, the
Company evaluates whether it has transferred
substantially all risks and rewards of ownership
of the financial asset. In such cases, the financial
asset is derecognised. Where the entity has not
transferred substantially all risks and rewards of
ownership of the financial asset, the financial
asset is not derecognised.

Where the entity has neither transferred a
financial asset nor retains substantially all risks
and rewards of ownership of the financial asset,
the financial asset is derecognised if the
Company has not retained control of the
financial asset. Where the Company retains
control of the financial asset, the asset is
continued to be recognised to the extent of
continuing involvement in the financial asset.

f) Income recognition(i) Interest income

Interest income from financial assets at
fair value through profit or loss is
disclosed as interest income within other
income. Interest income on financial
assets at amortised cost and financial
assets at FVOCI is calculated using the
effective interest method is recognised in
the standalone statement of profit and
loss as part of other income.

Interest income is calculated by applying
the effective interest rate to the gross
carrying amount of a financial asset
except for financial assets that
subsequently become credit- impaired.
For credit-impaired financial assets the
effective interest rate is applied to the net
carrying amount of the financial asset
(after deduction of the loss allowance).

(ii) Dividends

Dividends are received from financial
assets at fair value through profit or loss
and at FVOCI. Dividends are recognised
as other income in profit or loss when the
right to receive payment is established.
This applies even if they are paid out of
pre-acquisition profits, unless the
dividend clearly represents a recovery of
part of the cost of the investment.

g) Cash and cash equivalents

Cash and cash equivalents includes cash in
hand, deposits held at call with banks, other
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.

Bank overdrafts are shown within borrowings in
current liabilities in the balance sheet.

h) Trade receivable

Trade receivables are consideration due from
customers for goods sold or services performed
in the ordinary course of business. Trade
receivables are recognised/measured initially at
transaction price that is unconditional unless
they contain significant financing components.

Financial liabilitiesa) Measurement:

Financial liabilities are initially recognised
at fair value, reduced by transaction costs
(in case of financial liability not at fair
value through profit or loss), that are
directly attributable to the issue of
financial liability. After initial recognition,
financial liabilities are measured at
amortised cost using effective interest
method. The effective interest rate is the
rate that exactly discounts estimated
future cash outflow (including all fees
paid, transaction cost, and other
premiums or discounts) through the
expected life of the financial liability, or,
where appropriate, a shorter period, to
the net carrying amount on initial
recognition. At the time of initial
recognition, there is no financial liability
irrevocably designated as measured at

fair value through profit or loss. Liabilities
from finance lease agreements are
measured at the lower of fair value of the
leased asset or present value of minimum
lease payments.

b) 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 de¬
recognition of the original liability and the
recognition of a new liability. The
difference in the respective carrying
amounts is recognised in the standalone
statement of profit or loss.

c) Borrowings:

Borrowings are initially recognised at fair
value, net of transaction costs incurred.
Borrowings are subsequently measured
at amortised cost. Any difference
between the proceeds (net of transaction
costs) and the redemption amount is
recognised in profit or loss over the
period of the borrowings using the
effective interest method. Fees paid on
the establishment of loan facilities are
recognised as transaction costs of the
loan to the extent that it is probable that
some or all of the facility will be drawn
down. In this case, the fee is deferred
until the draw down occurs. To the extent
there is no evidence that it is probable
that some or all of the facility will be
drawn down, the fee is capitalised as a
prepayment for liquidity services and
amortised over the period of the facility
to which it relates.

Borrowings are removed from the
balance sheet when the obligation
specified in the contract is discharged,
cancelled or expired. 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 recognised in
standalone Statement of profit and loss.

Where the terms of a financial liability are
renegotiated and the entity issues equity
instruments to a creditor to extinguish all
or part of the liability (debt for equity
swap), a gain or loss is recognised in profit
or loss, which is measured as the
difference between the carrying amount
of the financial liability and the fair value
of the equity instruments issued.

Borrowings are classified as current
liabilities unless the Company has
unconditional right to defer settlement of
the liability for at least 12 months after
the reporting period. Where there is a
breach of a material provision of a long¬
term arrangement on or before the end
of the reporting period with the effect
that the liability becomes payable on
demand on the reporting date, the entity
does not classify the liability as current, if
the lender agreed, after the reporting
period and before the approval of the
standalone financial statements for issue,
not to demand payment as consequence
of the breach.

d) Trade and other payables:

These amounts represent liabilities for
goods and services provided to the
company prior to the end of financial year
which are unpaid. The amounts are
unsecured and are usually paid within 30¬
90 days of recognition. Trade and other
payables are presented as current
liabilities unless payment is not due
within 12 months after the reporting
period. They are recognised initially at
their fair value and subsequently
measured at amortised cost using the
effective interest method.

Acceptances represents amount payable
towards arrangements wherein banks
make direct payments, under letter of
credit issued, to the suppliers' banks for
materials and services purchased. The
banks and -financial institutions are paid
by the Company on the due date of such
acceptances. For the purposes of cash
flow presentation, the economic
substance of these transactions is

determined to be operating in nature,
and accordingly, settlement of such trade
acceptances by the Company is treated as
cash fows from operatng activity.

e) Liabilities under supplier finance
arrangement

Supplier finance arrangements are
characterised by one or more finance
providers offering to pay amounts that
an entity owes its suppliers and the entity
agreeing to pay according to the terms
and conditions of the arrangements at
the same date as, or a date later than,
when suppliers are paid. These
arrangements provide the entity with
extended payment terms, or the entity's
suppliers with early payment terms,
compared to the related invoice payment
due date.

The Company has entered a reverse
factoring arrangement for its trade
payables to micro, small and medium
enterprises (MSME suppliers or
"sellers"). For this purpose, the Company,
as "buyer," has executed an agreement
for supplier financing. The Exchange
operates the platform. It acts as an
intermediary that connects the buyer, the
seller, and participating financiers on a
common platform for the reverse
factoring of invoices.

The financing bank pays MSME on or
before 45 days from the invoice while the
Company, depending on the tenor, pays
the financier after 90-150 days from the
date of the invoice.

f) Offsetting financial instruments

Financial assets and liabilities are offset
and the net amount is reported in the
balance sheet where there is a legally
enforceable right to offset the recognised
amounts and there is an intention to
settle on a net basis or realize the asset
and settle the liability simultaneously.
The legally enforceable right must not be
contingent on future events and must be
enforceable in the normal course of
business and in the event of default,

insolvency or bankruptcy of the Company
or the counterparty.

1.20 Segment Reporting

Operating segments are reported in a manner
consistent with the internal reporting provided to the
chief operating decision maker.

The Managing Director, who has been identified as the
chief operating decision maker, assesses the financial
performance and position of the Company and makes
strategic decisions. Refer Note 47 for the segment
information presented.

1.21 Rounding of amounts

All amounts disclosed in the standalone financial
statements and notes have been rounded off to the
nearest lakhs with two decimal as per the
requirement of Schedule III, unless otherwise stated.

Note 2: Significant accounting assumptions,
estimates and judgements

The preparation of standalone financial statements
requires the use of accounting estimates which, by
definition, will seldom equal the actual results.
Management also needs to exercise assumptions,
estimates and judgements in applying the Company's
accounting policies. This note provides an overview of
the areas that involved a higher degree of judgement
or complexity, and of items which are more likely to be
materially adjusted due to estimates and assumptions
turning out to be different than those originally
assessed. Detailed information about each of these
estimates and judgements is included in relevant
notes together with information about the basis of
calculation for each affected line item in the
standalone financial statements. Accounting
estimates could change from period to period.

a) Estimation of current tax expense and deferred

income tax

The calculation of the Company's tax charge
necessarily involves a degree of estimation and
judgement in respect of certain items whose tax
treatment cannot be finally determined until
resolution has been reached with the relevant
tax authority or, as appropriate, through a
formal legal process. The final resolution of
some of these items may give rise to material
profits/losses and/or cash flows. Significant
judgments are involved in determining the
provision for income taxes, including amount
expected to be paid/recovered for uncertain tax

positions (Refer Note 35).

The recognition of deferred income tax assets
(including MAT Credit)/ liabilities is based upon
management's assessment of future taxable
profits for recoverability of the deferred benefit.
Expected recoverability may result from
sufficient and suitable taxable profits in the
future, planned transactions and planned tax
optimizing measures. To determine the future
taxable profits, reference is made to the latest
available profit forecasts.

b) Estimation of Provisions and Contingent
Liabilities.

The Company exercises judgement in
measuring and recognizing provisions and the
exposures to contingent liabilities which is
related to pending litigation or other
outstanding claims. Judgement is necessary in
assessing the likelihood that a pending claim will
succeed, or a liability will arise, and to quantify
the possible range of the financial settlement.
Because of the inherent uncertainty in this
evaluation process, actual liability may be
different from the originally estimated as
provision (Refer Note 39).

c) Estimated useful life of Property, Plant and
Equipment

Property, Plant and Equipment represent a
significant proportion of the asset base of the
Company. The charge in respect of periodic
depreciation is derived after determining an
estimate of an asset's expected useful life and
the expected residual value at the end of its life.
The useful lives and residual values of
Company's assets are determined by
management at the time the asset is acquired
and reviewed periodically, including at each
financial year end. Internal and external factors
such as changes in the expected level of usage,
technological developments, product life cycle,
relative efficiencies and operating costs may
impact their life and the residual value of these
assets. This reassessment may result in change
in depreciation and amortization expense and
have an impact on profit in future years. For the
relative size of the Company's property, plant
and equipment and intangible assets (Refer
Note 3 and 4).

d) Provision for inventories

The Company writes down inventories to net
realisable value based on an estimate of the
realisability of inventories. Write downs on
inventories are recorded where events or
changes in circumstances indicate that the
carrying balances may not realised. The
identification of write- downs requires the use
of estimates of net selling prices, age and
quality/condition of downgraded
materials/inventories. Where the expectation is
different from the original estimate, such
difference will impact the carrying value of
inventories and write-downs of inventories in
the periods in which such estimate has been
changed.

Write-downs of inventories to net realisable
value amounted to ' 310.40 lakhs (March 31,
2025:

' 496.02 lakhs). These were recognised as an
expense during the year and included in
'changes in the inventories of work-in-progress
and finished goods' in standalone statement of
Profit and Loss.

e) Estimation of Defined Benefit Obligation

The present value of the defined benefit
obligations depends on a number of factors that
are determined on an actuarial basis using a
number of assumptions. Significant judgements
are required when seffing these assumptions
which include estimation of appropriate
discount rate, inflation, salary growth, attrition
rates and mortality rates. Any changes in these
assumptions will impact the carrying amount of
such obligations. All assumptions are reviewed
at each reporting date.

The Company determines the appropriate
discount rate at the end of each year. This is the
interest rate that is used to determine the
present value of estimated future cash outflows
expected to be required to settle the defined
benefit obligations. In determining the
appropriate discount rate, the Company
considers the interest rates of government
bonds of maturity approximating the terms of
the related plan liability. Refer Note 31 for the
details of the assumptions used in estimating
the defined benefit obligation.

f) Estimation of impairment of non-current
assets

Ind AS 36 requires that the Company assesses
whether there is any indication of impairment to
an asset or a cash generating unit and
recoverability of potentially impaired assets.
The indication come from interplay of various
internal and external factors. Based on the
indications/conditions which can be external or
internal, impairment testing requires an
estimate of value in use of the assets. The
company applies the discounted cash flow

method based on the continued use of the
assets in the present condition for calculation of
value in use. In considering the value in use, the
management requires the use of estimates of,
among other uncertain variables, capacity
utilization, sales, cost of materials, operating
margins, rate of growth, currency rate
movements and discount rates of the
underlying business/operations.

Any consequent changes to the cash flows due
to changes in any of the above factors could
impact the carrying value of the assets.

Notes:

(i) Refer to Note 19 for information on property, plant and equipment hypothecated / pledged as security by the Company.

(ii) Contractual obligations : Refer to Note 40 for disclosure of contractual commitments for acquisition of property, plant and
equipment.

(iii) Borrowing cost allocated to fixed assets/ CWIP is Rs.86.37 lakhs (March 31 2025 :3.09 lakhs) refer note 34.

(iv) Capital work-in-progress - Capital work-in-progress mainly comprises of new plant and machinery for spinning and
texturising process, being installed/constructed in india.

Terms/ rights attached to equity shares

The Company has only one class of equity shares having a par value of '10 per share. All issued shares rank pari-passu and have same
voting rights per share. The Company declares and pays dividend in indian rupees.

In the event of liquidation of the Company, the holders of the equity shares will be entitled to receive remaining assets of the
Company, after distribution of preferential amounts. The distribution will be in proportion to the number of equity shares held by the
shareholders.

"Pursuant to approval by the Board of Directors at its meeting held on September 17, 2024 and the approval of the Shareholders at the
Extra Ordinary General Meeting of the Company held on October 16, 2024, and approval of Bombay Stock Exchange (BSE) and
National Stock Exchange (NSE), the Board of Directors of the Company allotted 77,67,827 (Seventy Seven Lakhs Sixty Seven Thousand
Eight Hundred and Twenty Seven Only) Equity Shares to Promoter & Promoter Group and Non-Promoter Category on Preferential
basis fully paid up Equity Shares of the face value of ' 10/- (Rupees Ten only) each for cash at a price of ' 182.50 (Rupees One Hundred
Eighty Two and Fifty Paise only) per equity share including a premium of ' 172.50 (Rupees One Hundred Seventy Two and Fifty Paise
only) per Equity Share. The Company received listing approval from BSE and NSE on December 2, 2024 and December 13, 2024
respectively and trading approval from BSE and NSE on December 20, 2024. The Equity Shares are under lock-in for such period as
specified under Regulation 167 of Chapter V of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.

In accordance with IND AS 32, the costs that are directly attributable to the above transactions, have been adjusted in equity.

Nature and purpose of reserves
Capital reserve

Capital reserve represents capital surplus and is not available for distribution as dividend.

Securities premium reserve

Securities premium is used to record the premium received on issue of shares. The reserve is utilized in accordance with the
provisions of the Companies Act, 2013.

Capital redemption reserve (CRR)

CRR is created on redemption of preference shares in accordance with the provisions of the Act.

Debenture redemption reserve (DRR)

DRR was created on issue of debentures in the earlier years. This has been transferred to General reserve as the debentures have
been redeemed.

General reserve

General reserve represents appropriation of profits by the Company.

Share options outstanding account

The share options outstanding account is used to recognise the grant date fair value of options issued to employees under AYM
Syntex Limited employee stock option plan.

Retained earnings

Retained earnings represent the accumulated undistributed earnings.

Defined Benefit Plan
Contribution to Gratuity

The Company provides for every employee who is entitled to a benefit equivalent to fifteen days salary last drawn for each completed
year of service in line with the Payment of Gratuity Act, 1972. The same is payable at the time of separation from the Company or
retirement, whichever is earlier.

The new Labour Codes introduced by the Government of India, inter alia, require gratuity to be calculated based on wages
constituting at least 50% of total remuneration. This has resulted in an increase in gratuity benefits in respect of services rendered in
prior periods, and accordingly, the Company has recognised past service cost amounting to ' 174.64 lakhs during the year. In
accordance with Ind AS 19, the past service cost has been recognised in the statement of profit and loss in the current year in which
the plan amendment became effective.

The gratuity obligation has been actuarially valued by an independent actuary, considering the revised definition of wages for gratuity
computation.

Risk exposure

These defined benefit plans expose the Company to actuarial risk such as longevity risks, interest rate risks, market (investment) risks.

Fair value hierarchy

The fair values of the financial assets and liabilities are included at the amount 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.

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a)
recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial
statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its
financial instruments into three levels prescribed under the Ind AS. An explanation for each level is given below.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments,
exchange traded funds and mutual funds 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 period. The mutual funds are valued using the closing Net Assets Value
(NAV), NAV represents the price at which, the issuer will issue further units and will redeem such units of mutual funds to and from
the investors.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which
maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required
to fair value an instrument are observable, the instrument is included in level 2. Instruments in the level 2 category for the Company
include foreign exchange forward contracts.

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

The carrying amounts of trade receivables, cash and cash equivalents,Insurance claim receivable, other receivable, current
borrowings, trade payables and other financial liabilities are considered to be approximately same as their value, due to the short -
term maturities of these financial assets/liabilities.

During the periods mentioned above, there have been no transfers amongst the levels of hierarchy.

Valuation techniques used to determine fair value:

Specific valuation techniques used to value financial instruments include:

• the use of quoted market prices or dealer quotes for similar instruments.

• the fair value of foreign exchange forward contracts is determined using forward exchange rates at the balance sheet date.

• the fair value of the remaining financial instruments is determined using discounted cash flow analysis.

NOTE 37 : CAPITAL MANAGEMENT
Risk management

The Company's objectives when managing capital is to safeguard continuity, maintain a strong credit rating and healthy capital ratios
in order to support its business and provide adequate return to shareholders through continuing growth. The Company's overall
strategy remains unchanged from previous year.

The Company determines the amount of capital required on the basis of annual business and long-term operating plans which include
capital and other strategic investments.

The funding requirements are met through a mixture of equity, internal fund generation and other long term borrowings. The
Company's policy is to use short-term and long-term borrowings to meet anticipated funding requirements.

For the purpose of the Company's capital management, equity includes paid up capital, securities premium and other reserves. Net
debt are long term, short term interest bearing debt and lease liabilities as reduced by balances with banks and cash and cash
equivalents. The Company's strategy is to maintain a gearing ratio within 2:1.

Loan covenants

Bank loan agreements contain certain debt covenants relating to limitation on indebtedness, debt-equity ratio, debt service
coverage ratio and fixed assets coverage ratio.

The lower than mandated debt service coverage ratio has no implications on the cash flows as the Company complies with and
satisfies all other conditions in respective agreements with the banks.

NOTE 38 : FINANCIAL RISK MANAGEMENT

The Company's activities are exposed to market risk, liquidity risk and credit risk which may adversely impact the fair value of its
financial instruments. In order to minimise any adverse effects on the financial performance of the Company, derivative financial
instruments, such as foreign exchange forward contracts are entered to hedge certain foreign currency risk exposures. Derivatives are
used exclusively for hedging purpose and not as trading or speculative instruments.

Credit risk is the risk that counterparty will not meet its obligation under a financial instrument or customer contract, leading to a
financial loss. The Company is exposed to credit risk from its operating activities (primarly trade receivables) and from its
financing activities, including deposits with banks, investments in mutual funds, foreign exhange transactions and other
financial instruments. The credit risk encompasses both the direct risk of default and the risk of deterioration of credit
worthiness as well as concentration risks. To manage this, the Company periodically assesses the financial reliability of counter
party, taking into account the financial condition, current economic trends, analysing the risk profile of the counter party and the
analysis of historical bad debts and ageing of accounts receivable etc. Individual risk limits are set accordingly.

The Company determines default by considering the business environment in which the Company operates and other macro¬
economic factors. The Company considers the probability of default upon initial recognition of asset and whether there has
been a significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there is a
significant increase in credit risk the Company compares the risk of a default occurring on the asset as at the reporting date with
the risk of default as at the date of initial recognition. It considers reasonable and supportive forwarding-looking information
such as:

i) Actual or expected significant adverse changes in business;

ii) Actual or expected significant changes in the operating results of the counterparty;

iii) Financial or economic conditions that are expected to cause a significant change to the counterparty's ability to meet its
obligations;

iv) Significant increase in credit risk on other financial instruments of the same counterparty;

v) Significant changes in the value of the collateral supporting the obligation or in the quality of the third-party guarantees.

None of the financial instruments of the Company result in material concentration of credit risk. The carrying value of financial
assets represent the maximum credit risk. Financial assets are written off when there is no reasonable expectation of recovery,
such as a debtor failing to engage in a repayment plan with the Company.

i) Trade receivables

The Company extends credit to customers in normal course of business. The Company considers factors such as credit track
record in the market and past dealings for extension of credit to customers. Credit risk is managed through credit approvals,
establishing credit limits, payment track record, monitoring financial position of the customer and other relevant factors.
Outstanding customer receivables are regularly monitored and reviewed.

The Company evaluates the concentration of risk with respect to trade receivables as limited, as its customers are located in
several jurisdictions and industries and operate in largely independent markets. The exposure to customers is diversified and no
substantial concentration of risk as no single customer contributes more than 10% of revenue and of the outstanding
receivables. Sales made in domestic market predominantly are through agents appointed by the Company, the agents being del
credere agents most of the credit risk emanating thereto is borne by agents and the Company's exposure to risk is limited to sales
made to customers directly. In case of direct sale, the Company has a policy of dealing only with credit worthy counter parties.
The credit risk related to such sales are mitigated by taking advance, security deposit, letter of credit, settng and monitoring
internal limits on exposure to individual customers as and where considered necessary. An impairment analysis which includes
assessment for indicators of impairment is performed at each reporting date on an individual basis for all major customers and
provision for impairment taken. The allowance reduces the net carrying amount.

To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics.The
expected loss rates for trade receivables has been computed based on reasonable approximation of the loss rates and paste
trend of outstanding debtors.

ii) Financial Instruments and Cash Deposits

The Company maintains exposure in Cash and Cash equivalents and term deposits with banks. The same is done after
considering factors such as track record, size of the institution, market reputation and service standards. Generally, the balances
are maintained with the institutions from whom the Company has also availed borrowings. Individual risk limits are set for each
counter party based on financial position, credit rating and past experience. Credit risk and concentration of exposure are
actively monitored by the Company. None of the financial instruments of the Company result in material concentration of credit
risk.

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations, by delivering cash or other
financial assets, on time or at a reasonable price. For the Company, liquidity risk arises from obligations on account of financial
liabilities - borrowings, trade and other payables, derivative instruments and other financial liabilities.

The Company's approach to managing liquidity is to ensure, 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 risking damage to
the Company's reputation. The Company manages liquidity risk by maintaining adequate cash and drawable reserves, by
continuously monitoring forecast and actual cash flows and matching the maturity profiles of the financial assets and
liabilities.The Company regularly monitors liquidity position through rolling forecast based on estimated free cash flow
generated from business. The Company invests its surplus funds in bank fixed deposits and liquid schemes of mutual funds,
which carry no/negligible mark to market risks.

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity or commodity prices will
affect the Company's income/cash flows or the value of its holdings of financial instruments. The objective of market risk
management is to manage and control market risk exposures within acceptable parameters, while optimising the return. The
sensitivity analysis excludes the impact of movements in market variables on the carrying value of postemployment benefit
obligations provisions and on the non-financial assets and liabilities. Financial instruments affected by market risk include
receivables, loans and borrowings, advances, deposits, investments and derivative financial instruments. The sensitivity of the
relevant profit and loss item is the effect of the assumed changes in respective market risks.

The Company's activities expose it to risks on account of changes in foreign currency exchange rates and interest rates. The Company
uses derivative financial instruments such as foreign exchange forward contracts of varying maturity depending upon the underlying
contract as a risk management strategy to manage its exposures to foreign exchange fluctuations and interest rate."

I Foreign currency risk

Currency risk is the risk that the fair value of a financial instrument or future cash flows fluctuate because of changes in market
price of the functional currency. The Company is exposed to foreign exchange risk on their receivables, payables and foreign
currency loans which are mainly held in the United State Dollar ("USD"), the Euro ("EUR"), British Pound ('GBP'), the Australian
Dollar ("AUD"), the Swiss Franc ("CHF") and Japanese Yen ("JPY"). Consequently, the Company is exposed primarily to the risk
that the exchange rate of the Indian Rupees ("^") relative to the USD, the EUR, the CHF, and the CNY may change in a manner
that has a material effect on the reported values of the Company's assets and liabilities that are denominated in these foreign
currencies.

The Company evaluates exchange rate exposure arising from foreign currency transactions and follows established risk
management policy wherein exposure is identified, a benchmark is set and monitored closely for suitable hedges, including
minimising cross currency transactions, using natural hedge and the use of derivatives like foreign exchange forward contracts to
hedge exposure to foreign currency risk.

II Interest rate risk

This refers to risk to the fair value or future cash flows of a financial instrument on account of movement in market interest rates.

For the Company, the interest risk arises mainly from debt obligations, both short term and long term with floating interest rates.
Interest rate risk is measured by using the cash flow sensitivity for changes in variable interest rate.

III Cash flow and fair value interest rate risk

Interest rate risk is measured by using the cash flow sensitivity for changes in variable interest rate. The Company uses a mix of
interest rate sensitive financial instruments to manage the liquidity and fund requirements for its day to day operations like
vendor bill discounting, suppliers' and buyers' credit. The risk is managed by the Company by maintaining an appropriate mix
between fixed and floating rate borrowings. As the Company does not have exposure to any floating interest bearing assets, its
interest income and related cash flows are not affected by changes in the market interest rates.

Notes:

(a) It is not practicable for the Company to estimate the timing of cash outflows, if any, in respect of the above pending resolution of
the respective proceedings.

(b) The Company does not expect any reimbursements in respect of the above contingent liabilities.

Description of contingent liabilities:

Excise, GST, customs and service tax matters

The Company has ongoing disputes with tax authorities mainly relating to availment of input tax credit on certain items and
classfication of finished goods.

Claims against Company not acknowledged as debts

Represent claims disputed by the Company wherein the Company has filed application for dismissal of the matters.

Details of Research and Development expenses incurred during the year, debited to the Statement of Profit and Loss
account are ' 1,085.60 lakhs (March 31, 2025: ' 1,230.13 lakhs), which includes materials cost, power cost and
employee cost.

NOTE 45: OFFSETTING FINANCIAL ASSETS AND FINANCIAL LIABILITIES

There are no financial assets or financial liabilities which are subject to offsettng as at March 31, 2026 and March 31,
2025, since the Company neither has enforceable right or an intent to settle on net basis or to realise the asset and
settle the liability simultaneously. Further, the Company has no enforceable matters nettng arrangements and other
similar arrangements as at March 31, 2026 and March 31, 2025.

As the segment information as per Ind AS 108 - Operating Segments is provided on the basis of consolidated financial
statements, the same is not provided separately in the standalone financial statements.

NOTE 48: EMPLOYEE STOCK OPTION PLAN DISCLOSURE FOR IND AS

The Company has formulated employee share-based payment schemes with objective to attract and retain talent and align the interest of
employees with the Company as well as to incentivize and motivate them to contribute to its growth and profitability. At present below
mentioned share-based payment schemes are in existence.

1) AYM Employee Stock Option Scheme 2021 (AYM ESOP SCHEME 2021) was approved by the shareholders through postal ballot on
March 05, 2021.

Details of these employee share-based schemes are given below:

Persons covered under this scheme include all permanent employees working in India or out of India, whole time and other directors.

The schemes however exclude employee outside india who is an employee of a subsidiary, holding or associate of the Company,promoters
or person belonging to the Promoter group, promoter director, director holding directly or indirectly more than 10% of the outstanding share
of the Company.

Options are granted under the plan for no consideration and carry no dividend or voting rights. When exercisable, each option is convertible
into one equity share. The exercise price of the options shall not be less than face value of equity share and shall not exceed market price of
the equity share of the Company as on the date of grant of Option.

NOTE 50: EVENTS OCCURRING AFTER THE REPORTING DATE

No adjustments on account of events occuring after the reporting date have been identified to the figures reported.

NOTE 51: ADDITIONAL REGULATORY INFORMATION REQUIRED BY SCHEDULE

(i) No proceedings have been initiated on or are pending against the company as at March 31, 2026 for holding benami property under
the Benami Transactions (Prohibitions) Act, 1988 (45 of 1988) and the rules made thereunder.

(ii) The company has borrowings from banks on the basis of security of current assets. The quarterly returns filed by the Company with
banks are in agreement with the books of accounts.

(iii) The company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

(iv) The company has no transactions with the companies struck off under Companies Act, 2013 or Companies Act, 1956.

(v) 1. The company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities
(Intermediaries) with the understanding that the Intermediary shall:

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company
(Ultimate Beneficiaries) or

b. provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

2. 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 group shall:

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding
Party (Ultimate Beneficiaries) or

b. provide any guarantee, security or the like on behalf of the ultimate beneficiaries

(vi) There is no income surrendered or transaction disclosed as income during the current or previous year in the tax assessments under
the Income Tax Act, 1961, that has not been recorded in the books of account.

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

(viii) The borrowings obtained by the company from banks have been applied for the purposes for which such loans were taken.

(ix) The company has complied with number of layers prescribed under the Companies Act, 2013 read with the Companies
(Restriction on number of layers) Rules 2017

(x) The company has not entered into any scheme of arrangement which has an accounting impact on current or previous year
figure

(xi) The company has not traded or invetsed in crypto currency or virtual currency during the current or previous year.