l) Provisions
General

Provisions are recognised when the Company has
a present obligation (legal or constructive) as a
result of a past event, 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.
When the Company expects some or all of a provision
to be reimbursed, the reimbursement is recognised as
a separate asset, but only when the reimbursement is
virtually certain.

The expense relating to a provision is presented in the
statement of profit and loss, net of any reimbursement.
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. The unwinding of discount is recognised in the
statement of profit and loss as a finance cost.
Provisions are reviewed at the end of each reporting
period and adjusted to reflect the current best estimate.
If it is no longer probable that an outflow of resources
would be required to settle the obligation, the provision
is reversed.

m) Financial instruments

A financial instrument is a contract that gives rise to
a financial asset for one entity and a financial liability
or equity instrument for another entity. Financial
assets and financial liabilities are recognised when
the Company becomes a party to the contractual
provisions of the instruments.

(i) Financial assets

Initial recognition and measurement

A financial asset is initially recognised at fair
value. In case of financial assets which are
recognised at fair value through profit and loss, its
transaction cost are recognised in the statement
of profit and loss. In other cases, the transaction
cost are attributed to the acquisition value of the
financial asset.

Subsequent measurement

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

- Financial Asset carried at amortised cost

- Financial Asset at Fair Value Through Other
Comprehensive Income (FVTOCI)

- Financial Asset at Fair Value Through Profit
and Loss (FVTPL)

Financial asset carried at amortised cost

A financial asset is subsequently 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.

Financial asset at Fair Value Through Other
Comprehensive Income (FVTOCI)

A financial asset is subsequently measured at fair
value through other comprehensive income if it is held
within a business model whose objective is achieved
by both collecting contractual cash flows and selling
financial assets 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.

Financial asset at Fair Value Through Profit and Loss
(FVTPL)

A financial asset which is not classified in any of the
above categories are subsequently fair valued through
profit or loss.

De-recognition

A financial asset (or, where applicable, a part of a
financial asset) is primarily derecognised (i.e. removed
from the Company’s Balance Sheet) when:

(i) The contractual rights to receive cash flows from
the asset has expired, or

(ii) The Company has transferred its contractual
rights to receive cash flows from the financial
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.

(ii) Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial
recognition, as financial liabilities at fair value
through profit or loss.

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

costs. The Company’s financial liabilities include
borrowings, trade and other payables, security
deposits received etc.

Subsequent measurement

For purposes of subsequent measurement,
financial liabilities are classified in two categories:

- Financial liabilities at amortised cost

- Financial liabilities at fair value through profit
and loss (FVTPL)

A financial liability is classified as at FVTPL if it is
classified as held for trading, or it is a derivative
or it is designated as such as initial recognition.
Financial liabilities at FVTPL are measured at fair
value and net gains and losses, including any
interest expense, are recognised in the Statement
of Profit and loss. Other financial liabilities are
subsequently measured at amortised cost using
the effective interest method. Interest expense is
recognised in the Statement of Profit and loss.

De-recognition

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
statement of profit and loss.

(iii) Offsetting of financial instruments

Financial assets and financial liabilities are offset
and the net amount is reported in the 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.

(iv) Derivative financial instruments

Till March 31,2019, the Company used derivative
financial instruments, such as forward currency
contracts, to hedge its foreign currency risks.
Such derivative financial instruments were
initially recognised at fair value on the date on
which a derivative contract is entered into and are
subsequently remeasured at fair value. Derivatives
are carried as financial assets when the fair value
is positive and as financial liabilities when the fair

n) Impairment of financial assets

The Company measures the expected credit loss
associated with its assets based on historical trend,
industry practices and the business environment in
which the entity operates or any other appropriate
basis. The impairment methodology applied depends
on whether there has been a significant increases in
credit risk. Expected credit loss is the weighted average
of the difference between all contractual cash flows
that are due to the Company in accordance with the
contracts and all the cash flows that the Company
expects to receive, discounted at original effective
interest rate with the respective risk of defaults
occurring as the weights.

o) Impairment of non-financial assets

The carrying amounts of the Company’s non-financial
assets, other than deferred tax assets, are reviewed at
the end of each reporting period to determine whether
there is any indication of impairment. If any such
indication exists, then the asset’s recoverable amount
is estimated.

The recoverable amount of an asset or cash¬
generating unit ('CGU’) is the greater of its value in use
or 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 CGU. For
the purpose of impairment testing, assets that cannot
be tested individually are grouped together into the
smallest group of assets that generates cash inflows
from continuing use that are largely independent of
the cash inflows of other assets or groups of assets
('CGU’).

An impairment loss is recognised, if the carrying
amount of an asset or its CGU exceeds its estimated
recoverable amount and is recognised in statement of
profit and loss.

Impairment losses recognised in prior periods are
assessed at end of each reporting period for any
indications that the loss has decreased or no longer
exists. An impairment loss is reversed if there has
been a change in the estimates used to determine the
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.

p) Fair value measurement

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

(a) In the principal market for the asset or liability, or

(b) In the absence of a principal market, in the most
advantageous market for the asset or liability.

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

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

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

Level 1 - Quoted (unadjusted) market prices in active
markets for identical assets or liabilities
Level 2 - Valuation techniques for which the

lowest level input that is significant to the fair value
measurement is directly or indirectly observable
Level 3 - Valuation techniques for which the

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

q) Taxes

Current income tax

Current income tax assets and liabilities are measured
at the amount expected to be recovered from or paid
to the taxation authorities. The tax rates and tax laws
used to compute the amount are those that are enacted
or substantively enacted, at the reporting date.

Current income tax relating to items recognised outside
profit or loss is recognised outside profit or loss (either
in other comprehensive income (OCI) or in equity).
Current tax items are recognised in correlation to the
underlying transaction either in OCI or directly in equity.
Management periodically evaluates positions taken
in the tax returns with respect to situations in which
applicable tax regulations are subject to interpretation
and establishes provisions where appropriate.

Current tax assets are offset against current tax
liabilities if, and only if, a legally enforceable right exists
to set off the recognised amounts and there is an
intention either to settle on a net basis, or to realise the
asset and settle the liability simultaneously.

Deferred tax

Deferred tax assets and liabilities are measured at the
tax rates that are expected to apply in the year when
the asset is realised or the liability is settled, based
on tax rates (and tax laws) that have been enacted or
substantively enacted at the reporting date
Deferred tax assets are recognised for all deductible
temporary differences, the carry forward of unused
tax credits and any unused tax losses. Deferred tax
assets are recognised to the extent that it is probable
that taxable profit will be available against which
the deductible temporary differences, and the carry
forward of unused tax credits and unused tax losses
can be utilised.

Deferred tax assets and liabilities are measured at the
tax rates that are expected to apply to the period when
the asset is realised or the liability is settled, based
on tax rates (and tax laws) that have been enacted or
substantively enacted at the balance sheet date. Tax
relating to items recognised directly in equity/other
comprehensive income is recognised in respective
head and not in the statement of profit & loss.

The carrying amount of deferred tax assets is reviewed
at each balance sheet date and is adjusted to the extent
that it is no longer probable that sufficient taxable profit
will be available to allow all or part of the asset to be
recovered.

Deferred tax assets and deferred tax liabilities are offset
if a legally enforceable right exists to set off current tax
assets against current tax liabilities and the deferred
taxes relate to the same taxable entity and the same
taxation authority.

Deferred tax relating to items recognised outside profit
or loss is recognised outside profit or loss (either in
other comprehensive income or in equity).

r) Investment in subsidiaries
Investment in subsidiaries

There is an option to measure investments in subsidiaries
at cost in accordance with Ind AS 27 at either:

(a) Fair value on date of transition; or

(b) Previous GAAP carrying values

The Company had decided to use the previous
GAAP carrying values to value its investments in its
subsidiaries as on the date of transition, April 01,2016.

s) Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise
cash at banks and on hand and short-term deposits
with an original maturity of three months or less, which
are subject to an insignificant risk of changes in value.

For the purpose of the statement of cash flows, cash
and cash equivalents consist of cash balance on hand,
cash balance at banks and short-term deposits, as
defined above, net of outstanding bank overdrafts as
they are considered an integral part of the Company’s
cash management.

t) Statement of Cash flows

The statement of cash flows have been prepared under
indirect method, whereby profit or loss is adjusted for
the effects of transactions of a non-cash nature, any
deferrals or accruals of past or future operating cash
receipts or payments and items of income or expense
associated with investing or financing cash flows.

u) Earnings per share (EPS)

In determining earnings per share, the Company
considers the net profit after tax and includes the post
tax effect of any extraordinary items.

Basic EPS amounts are calculated by dividing the profit
for the year attributable to the shareholders of the
Company by the weighted average number of equity
shares outstanding as at the end of reporting period.
Diluted EPS amounts are calculated by dividing the
profit attributable to the shareholders of the Company
by the weighted average number of equity shares
outstanding during the year plus the weighted average
number of Equity shares that would be issued on
conversion of all the dilutive potential equity shares
into equity shares.

Dilutive potential equity shares are deemed converted
as of the beginning of the period, unless they have been
issued at a later date. A transaction is considered to
be antidilutive if its effect is to increase the amount of

EPS, either by lowering the share count or increase the
earnings.

v) Government grants

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

Government grants relating to the purchase of
property, plant and equipment are included in non¬
current liabilities as deferred income and are credited
to Profit and Loss on a straight - line basis over the
expected lives of related assets and presented within
other income.

w) Contingent liabilities and contingent assets

A contingent liability exists when there is a possible
but not probable obligation, or a present obligation
that may, but probably will not, require an outflow of
resources, or a present obligation whose amount
cannot be estimated reliably. Contingent liabilities
do not warrant provisions, but are disclosed unless
the possibility of outflow of resources is remote.

Contingent assets are neither recognised nor disclosed
in the financial statements. However, contingent assets
are assessed continually and 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.

x) Dividend

The Company recognises a liability to make the payment
of dividend to owners of equity, 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.

y) Exceptional items

When items of income and expense within statement
of profit and loss from ordinary activities are of such
size, nature or incidence that their disclosure is relevant
to explain the performance of the Company for the
period, the nature and amount of such material items
are disclosed separately as exceptional items.

a) Other Receivables considered doubtful of ' 2,639.50 Lakhs (March 31, 2024 ' 2,639.50 Lakhs) includes enhanced
compensation of ' 2,335.15 Lakhs receivable by the Company from National Highways Authority of India pursuant to land
acquisition by the Central Government under National Highways Act, 1956 (Refer note 37). Also, it includes expenditure
recoverable from Jharkhand State Livelihood Promotion Society (Ministry of Rural Development) regarding Project cost
component for skilling candidates in state of Jharkhand of ' 304.35 Lakhs (March 31,2024 : ' 304.35 Lakhs)

b) Other Receivables considered good of ' 391.18 Lakhs (March 31,2024: ' 418.19 Lakhs) includes rent receivable and GST
input credit which is not reflected in GST portal as on balance sheet date.

b) Terms/ rights attached to equity shares:

The Company has only one class of equity shares having a par value of ' 5 per share. Each holder of equity shares is
entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The final dividend(if any)
proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the
Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares
held by the shareholders. During the year, the Company had declared and paid first Interim dividend of ' 5/- per share for
2024-25 and has declared second interim dividend of ' 6.5/- per share for 2024-25.

The Equity shares of the Company has undergone sub-division from the face value of ' 10 per equity share to ' 5 per equity
share i.e. 1 equity share to be split into 2 equity shares. The record date was fixed as January 05, 2024 and thereafter the
sub-division has become effective.

A) Nature of Securities :

i) Term Loan from Kotak Mahindra has been paid in full before March 31, 2025 (March 31, 2024 : secured by Fixed
Deposit of ' 20.00 Lakhs. and personal guarantee of Mr. Pulkit Seth (Promoter Director)

ii) Term Loan Facility from IndusInd Bank is secured by Fixed Deposit of ' 83.00 Lakhs (March 31, 2024: ' 83.00
Lakhs)

iii) Term loans from HDFC Bank are secured by charge over assets financed by term Loan, Immovable Properties of the
Company situated at (i) Plot No. 51, Sector 32, Gurgaon & (ii) Plot no. 446, Udyog Vihar, Phase IV, Gurgaon.

iv) Term loans from Canara Bank are secured by charge over assets financed by term Loan, Land & building, Plant &
Machinery at Survey No. 32/8,31/5A3,31/5B3,31/8CIB,31/8C2,31/13P31/14,31/15 Melavalam Village, Madurantakam
Taluk, Kancheepuram District, TamilNadu. and Personal Guarantee of Dr. Deepak Kumar Seth (Promoter Director) and
Mr. Pulkit Seth (Promoter Director).

v) Emergency credit line guaranteed scheme (ECLGS 2.0) & ECLGS 2.0 (Extension) facilities are secured by second
charge over securities provided for base credit facility, except personal guarantees.

vi) Vehicle Loans are secured by Hypothecation over the Vehicle financed by respective loan.

a) First Pari-Passu Charge by way of hypothecation of the entire current assets both present and future , including
but not limited to stocks of raw materials, semi finished and finished goods, raw material, book debts and stock,
loans and advances etc.

b) First Pari-Passu charge by way of hypothecation over the entire movable fixed assets belonging to the Borrower,
except any assets charged to any banks/financial institutions for securing the terms loans.

ii) Collateral Securities offered includes:

a) First pari passu charge over Immoveable properties of the Company situated at (i) Plot No. 16/17, Udyog Vihar,
Phase VI, Gurgaon, (ii) Plot No. 751, Pace City-II, Sector 37, Gurgaon & (iii)

Survey No. 30(P), 31(P), 32(P) & 262(P), Ward no 02 in Arryapakkam Village, Madurantakam Taluk, Kancheepuram
District, Tamil Nadu.

b) Irrevocable and unconditional personal guarantee of Dr. Deepak Kumar Seth (Promoter Director) and Mr. Pulkit
Seth (Promoter Director).

c) Principal amount of fixed deposits pledged amounting to Nil (March 31,2024 : ' 710.00 Lakhs, Closing Balance
as on March 31,2024'747.43 Lakhs).

iii) Refer Note No. 21 for the terms and conditions, nature of security and maturity profile of the current maturities of
long-term borrowings (forming part of long term borrowings of the Company).

B. Securities for Working Capital Facilities by HDFC Bank (Adhoc Outside Consortium)

a) Exclusive Charge over corporate office (Land and Building) situated in Gurugram, Haryana.

C. For interest rate & liquidity risk related disclosures, (refer note 44).

D. In respect of working capital loans, quarterly returns or statements of current assets filed by the Company with banks are
materially in agreement with the books of account.

E. Summary of reconciliation for the quarterly statements (statement of current assets filed by the Company with the bank)
with the books of accounts is as follows :

b) Defined benefit plans

In accordance with Ind AS 19 "Employee benefits", an actuarial valuation on the basis of "Projected Unit Credit Method"
was carried out, through which the Company is able to determine the present value of obligations. "Projected Unit Credit
Method" recognises each period of service as giving rise to additional unit of employees benefit entitlement and measures
each unit separately to built up the final obligation.

i) Gratuity scheme

The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the Act, employee who has completed
five years of service is entitled to specific benefit. The level of benefits provided depends on the member’s length of
service and salary at retirement age. The gratuity is funded in current year for all the units and maintained by Life
Insurance Corporation of India.

ii) Other long term employee benefits

As per the Company’s policy, eligible leaves can be accumulated by the employees and carried forward to future
periods to either be utilised during the service, or encashed. Encashment can be made during the service, on early
retirement, on withdrawal of scheme, at resignation by employee and upon death of employee. The scale of benefits
is determined based on the seniority and the respective employee’s salary. The Company records an obligation for
such compensated absences in the period in which the employee renders the services that increase this entitlement.
The obligation is measured on the basis of independent actuarial valuation using the projected unit credit method.
Re-measurements, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable)
and the return on plan assets (excluding interest and if applicable), is reflected immediately in Other Comprehensive
Income in the statement of profit and loss in case of Gratuity. All other expenses related to defined benefit plans are
recognised in statement of profit and loss as employee benefit expenses. Re-measurements recognised in Other
Comprehensive Income will not be reclassified to statement of profit and loss hence it is treated as part of retained
earnings in the statement of changes in equity. Gains or losses on the curtailment or settlement of any defined benefit
plan are recognised when the curtailment or settlement occurs. Curtailment gains and losses are accounted for as
past service costs.

c) The following tables summarise the components of net benefit expense recognised in the Statement of profit and loss and
the funded status and amounts recognised in the balance sheet for the defined benefit plan and other long term benefits.
These have been provided on accrual basis, based on year end actuarial valuation.

41. Capital management

The Company’s objectives when managing capital are to:

- safeguard its ability to continue as a going concern, so that it can continue to provide returns for shareholders and benefits
for other stakeholders, and

- maintain an appropriate capital structure of debt and equity.

The Board of Directors have the primary responsibility to maintain a strong capital base and reduce the cost of capital through
prudent management in deployment of funds and sourcing by leveraging opportunities in domestic and international markets
so as to maintain investors, creditors and markets confidence and to sustain future development of the business.

The Company monitors capital, using a medium term view ranging between three to five years, on the basis of a number of
financial ratios generally used by the industry. The Company monitors capital structure using a gearing ratio, which is net
debt divided by total capital plus net debt. Net debt comprises of long term and short term borrowings less cash and cash
equivalents. Equity includes equity share capital and reserves that are managed as capital. The gearing ratio at the end of
reporting periods were as follows:

I Derivative instruments and unhedged foreign currency exposure
I) Hedge Accounting

(i) The Company enters into hedging instruments in accordance with policies as approved by the Board of Directors
with written principles which is consistent with the risk management strategy of the Company. The Company applied
hedge accounting for certain derivative contracts that meets the qualifying criteria of hedging relationship. Hedging
strategies are decided and monitored periodically by Chief Financial Officer and Board of Directors of the Company.
Cash Flow Hedges

Foreign exchange forward contracts are designated as hedging instruments in cash flow hedges of forecasted hedged
items in US dollar. These forecast transactions are highly probable. The foreign exchange forward contract balances
vary with the level of expected foreign currency sales and changes in foreign exchange forward rates.

43. Fair value measurements
I Financial instruments

a) Financial instruments by category

Except Investment in equity instruments (Quoted) and investment in mutual funds which are measured at fair value through
profit or loss, all other financial assets and liabilities viz. trade receivables, security deposits, cash and cash equivalents,
other bank balances, interest receivable, other receivables, trade payables, employee related liabilities and borrowings, are
measured at amortised cost. Derivative financial instruments are measured at fair value through other comprehensive
income.

b) Fair value hierarchy

This section explains the judgments 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 standalone 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.
An explanation of each level follows underneath the table.

d) Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques
as follows.

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e.
as prices) or indirectly (i.e. derived from prices)

Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
There have been no transfers in either direction for the year ended March 31,2025 and March 31,2024.

e) Fair value of financial assets and liabilities measured at amortised cost

The carrying amounts of short-term trade and other receivables, trade payables, cash and cash equivalents
and other bank balances are considered to be the same as their fair values, due to their short-term nature.
For other financial liabilities/ assets that are measured at fair value, the carrying amounts are equal to the fair values.

Discount rate used in determining fair value

The interest rate used to discount estimated future cash flows, where applicable, are based on the incremental borrowing
rate of borrower which in case of financial liabilities is average market cost of borrowings of the Company and in case
of financial asset is the average market rate of similar credit rated instrument. The Company maintains policies and
procedures to value financial assets or financial liabilities using the best and most relevant data available.

I Financial risk management objectives and policies

The Company’s principal financial liabilities comprises of trade and other payables, borrowings, current maturity of borrowings,
interest accrued and capital creditors. The main purpose of these financial liabilities is to finance the Company’s operations and
to provide guarantees to support its operations. The Company’s principal financial assets includes Investment in mutual funds,
loans to related parties, security deposits, trade receivables, cash and cash equivalents, deposits with bank, interest accrued in
deposits, receivables from related and other parties and interest accrued thereon.

The Company has exposure to the following risks arising from financial instruments:

- credit risk,

- liquidity risk and

- market risk.

The Company’s senior level management oversees the management of these risks and is supported by finance department that
advises on the appropriate financial risk governance framework.

Credit risk is the risk that counterparty will default on its contractual obligations resulting in finance loss to the Company.

Credit risk arise from Cash and cash equivalents, deposit with banks, trade receivables and other financial assets measure

at amortised cost. The Company continuously monitors defaults of customers and other counterparties and incorporate

this information into its credit risk control.

(i) Trade Receivables

The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer.
The credit risk is managed by the Company based on credit approvals, establishing credit limits and continuously
monitoring the credit worthiness of the customers, to whom the Company grants credit period in the normal course of
business including taking credit insurance against export receivables. The Company uses expected credit loss model
to assess the impairment loss in trade receivables and makes an allowance of doubtful trade receivables using this
model.

(ii) Other Financial Assets: The Company maintains exposure in cash & cash equivalents, term deposits with banks,
investments, advances and security deposits etc. Credit risk from balances with banks, investment in mutual funds
and loan to related parties is managed by the Company’s treasury department in accordance with the Company’s
policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to
each counterparty. Counterparty credit limits are reviewed by the Company’s Board of Directors on an annual basis,
and may be updated throughout the year subject to approval of the Company’s finance committee. The Company’s
maximum exposure to the credit risk as at March 31,2025 and March 31,2024 is the carrying value of each class of
financial assets.

(iii) Exposure to Risk, in respect of the guarantees given by the Company: The disclosure in respect of credit risk
exposures which are not credit impaired or where there has not been a significant increase in credit risk since initial
recognition are as under:

- Policy of managing risk: To assess whether there is a significant increase in credit risk the Company compares
the risk of default as at the reporting date with the risk of default as at the date of initial recognition. The Company
considers reasonable and supportive forward-looking information such as significant changes in the value of
guarantee or in the quality of exposure or credit enhancements.

B. Liquidity risk

Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations
without incurring unacceptable losses.

The Company’s objective is to, maintain optimum levels of liquidity to meet its cash and collateral requirements. The
Company closely monitors its liquidity position and deploys a robust cash management system. It maintains adequate
sources of financing including loans from banks at an optimised cost.

Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates will affect the
Company’s income. The value of a financial instrument may change as a result of changes in the interest rates, foreign
currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments. The
objective of market risk management is to manage and control market risk exposures withing acceptables parameters,
while optimising the return. The Board of Directors is responsible for setting up the policies and procedures to amange
risks of the Company.

i) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates
primarily to the Company’s long-term debt obligations with floating interest rates. The Company manages its net
exposure to interest rate risk related to borrowings, by balancing a proportion of fixed rate and floating rate borrowing
in its total borrowing portfolio.

Interest Rate Sensitivity: The sensitivity analysis in the following sections relate to the position as at March 31,2025
and March 31, 2024. The following table demonstrates the sensitivity to a reasonably possible change in interest
rates on the portion of borrowings affected. With all other variables held constant, the Company’s profit before tax is
affected through the impact on floating rate borrowings, as follows:

The Company is exposed to foreign currency risk on certain transactions that are denominated in a currency other
than entity’s functional currency, hence exposure to exchange rate fluctuations arises. The risk is that the functional
currency value of cash flows will vary as a result of movements in exchange rates. The following tables demonstrate
the sensitivity (strengthening or weakening of Indian Rupee) to a reasonably possible change in exchange rates, with
all other variables held constant.

45. Segment Information

a) The Company’s operating segments are established on the basis of those components that are evaluated regularly by the
Executive Committee (the 'Chief Operating Decision Maker’ as defined in Ind AS 108 - 'Operating Segments’). In light of
Para 4 of Ind AS 108- Operating Segments, the Company has presented segment information on geographical basis in its
consolidated financial statements.

b) Revenue from major customer: During the year, the Company generates 90% of its external revenues from 8 customers
(March 31,2024: 7 customers).

I Contingent liabilities and commitments

a) Contingent liabilities (To the extent not provided for)

I (i) The Company has reviewed all its pending claims, litigations and other proceedings and has adequately provided for
wherever required. The Company does not expect the outcome of these proceedings to have a material or adverse
effect on financial position of the Company. In certain cases, it is difficult for the Company to estimate the timings
of cash outflows, if any, as it is determinable only on receipt of judgement/decisions pending with various forums/
authorities. The Company does not expect any reimbursements in respect of the below contingent liabilities.

. To Vietnam Technological and Commercial Joint Stock Bank for securing credit facilities to its wholly owned
subsidiary Pearl Global Vietnam Company Limited for USD 75.00 Lakhs equivalent to ' 6,418.50 Lakhs. (March
31,2024 : USD 55.00 Lakhs equivalent to ' 4,585.35 Lakhs)

• To Heng Seng Bank Limited, Hong Kong for securing credit facilities to its wholly owned subsidiary Pearl Global
(HK) Limited, Hong Kong and its step down subsidiary DSSP Global Limited for USD 30.00 Lakhs equivalent to
' 2,567.40 Lakhs. (March 31,2024 :USD 30.00 Lakhs equivalent to ' 2,501.10 Lakhs)

• To Heng Seng Bank Limited, Hong Kong for securing credit facilities to its wholly owned subsidiary Pearl Global
(HK) Limited, Hong Kong and its step down subsidiary DSSP Global Limited for USD 20.00 Lakhs equivalent to
' 1,711.60 Lakhs. (March 31,2024 : USD 20.00 Lakhs equivalent to ' 1,667.40 Lakhs)

Above Corporate Guarantees have been given for business purpose.

d) Terms and conditions of transactions with related parties

All the transaction with the related parties are made on terms equivalent to those that prevail in arm’s length transactions.
Outstanding balances at the year end are unsecured and interest free except the interest bearing loan and settlement
occurs in cash.

e) Personal Guarantee given by Dr. Deepak Kumar Seth (Promoter Director) and Mr. Pulkit Seth (Director) against the
Borrowings (refer note no. 21 & 22).

f) The remuneration of Key managerial Personnel does not include amount in respect of gratuity and leave encashment
payable as the same are not determinable as individual basis for the KMP The liabilities of gratuity and leave encashment
are provided for Company as whole on the basis of acturial valuation.

g) During the year the Company had acquired additional equity interest in substance in Pearl GT HoldCo Limited and
now shareholding comes at 80% (March 31, 2024 - 55%). Further, Pearl GT HoldCo Limited is the Holding Company
of Corporacion de Productos Y Servicios Asociados, Sociedad Anonima (CORPASA) and Shoretex, Sociedad Anonima
(SHORETEX), thereby making both CORPASA and SHORTEX, step down subsidiaries of the Company.

h) During the year the Company had acquired 99.90% equity interest in substance in Pearl Knitting and Dyeing Industries
Limited.

The maturity analysis of lease liabilities is given in Note 44 in the 'Liquidity risk’ section.

Cash flows from operating activities includes cash flow from short term lease & leases of low value. Cash flows from
financing activities includes the payment of interest and the principal portion of lease liabilities.

Leases committed and not yet commenced: There are no leases committed which have not yet commenced as on
reporting date.

Company as a Lessor

The Company is not required to make any adjustments on transition to Ind AS 116 for leases in which it acts as a lessor.
The Company accounted for its leases in accordance with Ind AS 116 from the date of initial application. The Company
does not have any significant impact on account of sub-lease on the application of this standard.

The Company has given its building space, lying under property, plant and equipments, on operating lease through operating
lease arrangements. Income from operating leases is recognised as revenue on a straight-line basis over the lease term.
Lease income of ' 875.09 Lakhs (March 31,2024: ' 728.92 Lakhs) has been recognised and included under Other Income.
(Refer Note No. 29)

The following table sets out a maturity analysis of lease receivable, showing the undiscounted lease payments to be
received after the reporting date.

Notes:

a) Net Profit after taxes Non-cash operating expenses like depreciation and other amortisations Interest other
adjustments like loss on sale of Fixed assets etc. "Net Profit after tax" means reported amount of "Profit / (loss) for the
period" and it does not include items of other comprehensive income.

b) Interest, Lease Payments and Principal Repayments of long term debt

c) Current assets - Current liabilities

d) Tangible Net Worth Total Debt(excluding lease liabilities in debt) Deferred Tax Liability

e) Tangible Net Worth Total Debt(including lease liabilities in debt) Deferred Tax Liability

f) Reasons have been explained for variance in which % change is more than 25% as compared to ratio of previous year.

52. Employee Share Based Payment

A. The Board of Directors had accorded their consent for the implementation of Pearl Global Industries Limited Employee
Stock Option Plan 2022 (the Plan) on June 30, 2022 which was approved by the shareholders of the Company vide Postal
Ballot on August 28, 2022. Pursuant to the terms of the said plan, the Company had granted 14,15,300 options till date to
eligible employees of the Company/ subsidiary company. During the year ended March 31,2025, the Company has granted
1,35,100* (March 31, 2024: 4,54,000*) stock options to the eligible employees of the Company/subsidiary companies.
Each option when exercised would be converted into one fully paid-up equity share of ' 5/- each of the Company. The
options granted under ESOP scheme carry no rights to dividends and no voting rights till the date of exercise. The fair
value of the share options is estimated at the grant date using Black and Scholes Model, taking into account the terms and
conditions upon which the share options were granted.

Further, during the year ended March 31,2025, the Company has accelerated the vesting of 3,200 options based on the
approval of Nomination and Remuneration Committee in accordance with 'the Plan’, due to which an additional amount of
' 0.05 Lakhs has been charged to statement of profit and loss account.

The Company has recognised an expense of 573.99 Lakhs (March 31, 2024: ' 600.38 Lakhs) arising from equity settled
share based payment transactions for employee services received during the year. The carrying amount of Employee stock
options outstanding reserve as at March 31,2025 is 1,303.91 Lakhs (March 31,2024: ' 899.19 Lakhs).

*The movement of options & the fair value assumptions have been restated to give effect of share split of equity shares
of face value of ' 10 each sub-divided into 2 equity shares of face value of ' 5 each held vide shareholder’s approval dated
December 19, 2023 through postal ballot.

I Pursuant to transfer pricing legislations under the Income-tax Act, 1961, the Company is required to use specified
methods for computing arm’s length price in relation to specified international transactions with its associated enterprises.
Further, the Company is required to maintain prescribed information and documents in relation to such transactions. The
appropriate method to be adopted will depend on the nature of transactions/ class of transactions, class of associated
persons, functions performed and other factors, which have been prescribed. The Company is in the process of updating
its transfer pricing documentation for the current financial year. Based on the preliminary assessment, the management
is of the view that the update would not have a material impact on the tax expense recorded in these financial statements.
Accordingly, these financial statements do not include any adjustments for the transfer pricing implications, if any.

54. 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 or entity, including foreign entity ("Intermediaries") with the
understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or
on behalf of the Company (Ultimate Beneficiaries).

The Company has not received any fund from any party (Funding Party) with the understanding that the Company shall
whether, directly or indirectly lend or invest in other persons or entity identified by or on behalf of the Company ("Ultimate
Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

| Disclosure of transactions with struck off companies

The Company did not have any material transactions with companies struck off under Section 248 of the Companies Act,
2013 or section 560 of Companies Act, 1956 during the financial years.

56. A) No transactions to report against the following disclosure requirements as notified by MCA pursuant to amended

Schedule III:

(a) Crypto Currency or Virtual Currency

(b) Benami Property held under Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder

(c) Registration of charges or satisfaction with Registrar of Companies.

(d) Relating to borrowed funds:

i) Wilful defaulter

ii) Utilisation of borrowed funds & share premium

iii) Borrowings obtained on the basis of security of current assets

iv) Discrepancy in utilisation of borrowings

57. Figures have been rounded off to the nearest Lakhs upto two decimal places except otherwise stated.

For & on behalf of Board of Directors of Pearl Global Industries Limited

(Pulkit Seth) (Pallab Banerjee)

Vice-Chairman Managing Director

DIN 00003044 DIN 07193749

(Sanjay Gandhi) (Narendra Somani)

Group CFO Chief Financial Officer

M. No.096380 M. No.092155

(Shilpa Saraf)

Place of Signature: Gurugram Company Secretary

Date: May 20, 2025 M.No. A23564