XVIII. Provisions, contingent assets and contingent liabilities

Provisions are recognised only when there is a present obligation, as a result of past events, it is probable
that an outflow of resources embodying economic benefits will be required to settle the obligation and
when a reliable estimate of the amount of obligation can be made at the reporting date. These estimates are
reviewed at each reporting date and adjusted to reflect the current best estimates.

Provisions are discounted to their present values, where the time value of money is material.

Contingent liability is disclosed for:

• Possible obligations which will be confirmed only by future events not wholly within the control of the
Company; or

• Present obligations arising from past events where it is not probable that an outflow of resources will be
required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.

Contingent assets are not recognised. However, when inflow of economic benefits is probable, related asset
is disclosed.

XIX. Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity
shareholders (after deducting attributable taxes) by the weighted average number of equity shares
outstanding during the period. The weighted average number of equity shares outstanding during the
period is adjusted for events including a bonus issue.

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

Potential ordinary shares shall be treated as dilutive when, and only when, their conversion to ordinary
shares would decrease earnings per share or increase loss per share from continuing operations.

XX. Taxes
Income taxes

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 or 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.

Deferred tax

Deferred tax liabilities are generally recognised in full for all taxable temporary differences. Deferred tax
assets are recognised to the extent that it is probable that the underlying tax loss, unused tax credits
(Minimum alternate tax credit entitlement) or deductible temporary difference will be utilised against future
taxable income. This is assessed based on the Company's forecast of future operating results, adjusted for
significant non-taxable income and expenses and specific limits on the use of any unused tax loss or credit.
Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent
that it has become probable that future taxable profits will allow deferred tax asset to be recovered.

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 items are recognised in correlation to the
underlying transaction either in other comprehensive income or directly in equity. Deferred tax assets are
only recognised to the extent that it is probable that future taxable profits will be available against which the
temporary differences can be utilised.

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

Minimum Alternate Tax ('MAT') credit is recognized as an asset only when and to the extent it is probable
that the Company will pay normal income tax during the specified period. In the year in which MAT credit
becomes eligible to be recognized as an asset, the said asset is created by way of a credit to the Statement of
Profit and Loss and shown as MAT credit entitlement. The Company reviews the same at each balance sheet
date and writes down the carrying amount of MAT credit entitlement to the extent it is not probable that the
Company will pay normal income tax during the specified period.

While determining the tax provisions, the Company assesses whether each uncertain tax position is to be
considered separately or together with one or more uncertain tax positions depending upon the nature and
circumstances of each uncertain tax position.

XXI. 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.

XXII. Dividend payment

A final dividend, including tax thereon, on equity shares is recorded as a liability on the date of approval
by the shareholders. An interim dividend, including tax thereon, is recorded as a liability on the date of
declaration by the Board of directors.

XXIII. Government grants

Income includes export and other recurring and non-recurring incentives from Government (referred as
"incentives'). Government grants are assistance by government in the form of transfers of resources to an

entity in return for past or future compliance with certain conditions relating to the operating activities of
the entity. The Company is entitled to subsidies from government in respect of manufacturing units located
in specified regions.

Government grants are recognised when there is a reasonable assurance that the Company will comply
with the relevant conditions and the grant will be received. These are recognised in the Statement of Profit
and Loss, either on a systematic basis when the Company recognises, as expenses, the related costs that the
grants are intended to compensate or, immediately if the costs have already been incurred.

Government grants related to assets are deferred and amortised over the useful life of the asset. Government
grants related to income are presented as an offset against the related expenditure, and government grants
that are awarded as incentives with no ongoing performance obligations to the Company are recognised as
income in the period in which the grant is received. Government grant in form of subsidy for unit at Chittoor,
Andhra Pradesh is awarded as incentive to the Company, and is recognised as income in the period in which
the grant is accrued and there is no uncertainty of collection.

XXIV. Segment reporting

In accordance with Ind AS 108, the operating segments used to present segment information are identified
on the basis of internal reports used by the Company's management to allocate resources to the segments
and assess their performance. The Board of Directors is collectively the Company's 'Chief Operating Decision
Maker' or 'CODM' within the meaning of Ind AS 108. The indicators used for internal reporting purposes may
evolve in connection with performance assessment measures put in place.

XXV. Supply chain financing arrangement

Includes amount payable to Micro, Small and Medium Enterprise vendors through TReDS portal for the
financing facility availed by the Company. Under these facilities, the third party shall pay the amount on
behalf of the Company and the Company shall pay the third party on the due date along with interest. The
outstanding liability of the Company towards the third party under this facility has been disclosed under
Borrowings.

XXVI. Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset are
capitalised during the period of time that is necessary to complete and prepare the asset for its intended
use. Borrowing costs consist of interest calculated using the effective interest method that an entity incurs
in connection with the borrowing of funds. Borrowing cost also includes exchange differences to the extent
regarded as an adjustment to the borrowing costs.

All other borrowing costs are charged to the Statement of Profit and Loss as incurred.

XXVII. Use of estimates and judgement

The following are the critical judgments and the key estimates concerning the future that management has
made in the process of applying the Company's accounting policies and that may have the most significant
effect on the amounts recognised in the financial Statements or that have a significant risk of causing a
material adjustment to the carrying amounts of assets and liabilities within the next financial year.

a. Useful lives of depreciable/ amortisable assets: Management reviews its estimate of the useful lives
of depreciable/amortisable assets at each reporting date, based on the expected utility of the assets.
Uncertainties in these estimates relate to technical and economic obsolescence that may change the
utility of assets.

b. Evaluation of indicators for impairment of assets: The evaluation of applicability of indicators of
impairment of assets requires assessment of several external and internal factors which could result in
deterioration of recoverable amount of the assets.

c. Allowance for expected credit loss: The allowance for expected credit loss reflects management's
estimate of losses inherent in its credit portfolio. This allowance is based on Company's estimate of
the losses to be incurred, which derives from past experience with similar receivables, current and

historical past due amounts, dealer termination rates, write-offs and collections, the careful monitoring
of portfolio credit quality and current and projected economic and market conditions. Should the
present economic and financial situation persist or even worsen, there could be a further deterioration
in the financial situation of the Company's debtors compared to that already taken into consideration in
calculating the allowances recognised in the financial statements.

d. Allowance for obsolete and slow-moving inventory: The allowance for obsolete and slow-moving
inventory reflects management's estimate of the expected loss in value and has been determined on
the basis of past experience and historical and expected future trends in the used vehicle market. A
worsening of the economic and financial situation could cause a further deterioration in conditions
compared to that taken into consideration in calculating the allowances recognized in the financial
statements.

e. Contingent liabilities: The Company is the subject of legal proceedings and tax issues covering a range
of matters, which are pending in various jurisdictions. Due to the uncertainty inherent in such matters, it
is difficult to predict the final outcome of such matters. The cases and claims against the Company often
raise difficult and complex factual and legal issues, which are subject to many uncertainties, including
but not limited to the facts and circumstances of each particular case and claim, the jurisdiction and
the differences in applicable law. In the normal course of business management consults with legal
counsel and certain other experts on matters related to litigation and taxes. The Company accrues a
liability when it is determined that an adverse outcome is probable, and the amount of the loss can be
reasonably estimated.

f. Provisions: At each balance sheet date basis the management judgment, changes in facts and legal
aspects, the Company assesses the requirement of provisions against the outstanding contingent
liabilities. However, the actual future outcome may be different from this judgement.

g. Leases: Ind AS 116 defines a lease term as the non-cancellable period for which the lessee has the
right to use an underlying asset including optional periods, when an entity is reasonably certain to
exercise an option to extend (or not to terminate) a lease. The Company considers all relevant facts and
circumstances that create an economic incentive for the lessee to exercise the option when determining
the lease term. The option to extend the lease term is included in the lease term, if it is reasonably
certain that the lessee would exercise the option. The Company reassesses the option when significant
events or changes in circumstances occur that are within the control of the lessee.

h. Income Taxes: The Company's tax jurisdiction is India. Significant judgements are involved in estimating
budgeted profits for the purpose of paying advance tax, determining the provision for income taxes,
including amount expected to be paid / recovered for uncertain tax positions (refer note 34). The extent
to which deferred tax assets/minimum alternate tax credit can be recognized is based on management's
assessment of the probability of the future taxable income against which the deferred tax assets/
minimum alternate tax credit can be utilized.

i. Defined benefit obligations (DBO): Management's estimate of the DBO is based on a number of critical
underlying assumptions such as standard rates of inflation, mortality, discount rate and anticipation of
future salary increases. Variation in these assumptions may significantly impact the DBO amount and
the annual defined benefit expenses.

j. Fair value measurements

Management applies valuation techniques to determine fair value of financial instruments (where active
market quotes are not available) and stock option. This involves developing estimates and assumptions
around volatility, dividend yield which may affect the value of equity shares or stock options.

k. Recoverability of advances/ receivables:

At each balance sheet date, based on historical default rates observed over expected life, the
management assesses the expected credit losses on outstanding receivables and advances.

(iii) Above mentioned other current financial assets have been hypothecated as securities with banks, refer note 17
for details.

(iv) Incentive receivable from government includes duty recoverable under Remission of Duties or Taxes on Export
Products ('RODTEP') scheme and Duty Drawback and State Goods and Service Tax ('SGST') scheme specified
under "Industrial Development Policy 2015-2020'; notified by the Andhra Pradesh government. Also, refer note
25 (ii), (iii) and (iv).

(v) Refer note 40 and 41 for disclosure of fair values in respect of financial assets measured at amortised cost and
assessment of expected credit losses.

(vi) Includes indirect-tax credits receivable from statutory authorities.

(i) Above mentioned inventories have been hypothecated as securities with banks, refer note 17 for details.

(ii) The management has conducted physical verification of inventory at reasonable intervals during the year except
for inventory in transit. No material discrepancies have been noted by the management.

(iii) The goods in transit classified under finished goods comprise of finished goods dispatched to customers, for
which revenue has not been recognised as at March 31, 2026, as the criteria for recognition of revenue has not
been met.

*Certain amounts that are required to be disclosed and do not appear due to rounding-off are expressed as "0.00".

(i) Above mentioned trade receivables have been hypothecated as securities with banks, refer note 17 for details

(ii) Refer note 40 for disclosure of fair values in respect of financial assets measured at amortised cost.

(iii) Refer note 41 for details of expected credit loss for trade receivables under simplified approach.

(iv) There are no unbilled receivables, hence the same is not disclosed in the ageing schedule.

(v) There are no debts due by directors or other officers of the Company.

(vi) The Company defines default as an event when the financial asset is past due for more than 180 days.

(b) Terms/ rights attached to equity shares

The Company has only one class of shares referred to as equity shares having a face value of Rs. 2 per share.
Each equity shareholder is entitled to one vote per share held. The Company declares and pays dividends in
Indian Rupees. The final dividend proposed, if any, by the Board of Directors is subject to the approval of the
shareholders in the ensuing Annual General Meeting, except in the case of interim dividend. Interim dividend is
declared post the approval by the Board of Directors.

In the event of liquidation of the Company, the holder of equity shares will be entitled to receive remaining assets
of the Company, after payment of all liabilities. The distribution will be in proportion to the number of equity
shares held by the shareholders.

Description of nature and purpose of each reserve(a) Security premium

The security premium is the amount paid by shareholder over and above the face value of equity share. Security
premium can be utilised as per the provisions of the Companies Act, 2013.

iii Security disclosure for the outstanding current borrowings for current year ended 31 March 2026 are as follows:

1 First pari-passu charge over the entire current assets of the Company including raw material, stock-in-trade,
finished goods including stocks-in-transit and those lying in godowns, ports, etc and book debts (both
present and future).

Security disclosure for the outstanding current borrowings for previous year ended 31 March 2025 are as

follows:

1 First pari-passu charge over the entire current assets of the Company including raw material, stock-in-trade,
finished goods including stocks-in-transit and those lying in godowns, ports, etc and book debts (both
present and future).

2 Second pari-passu charge on the entire fixed assets of the Company both present and future, excluding
vehicles, situated at Plot No. P.A. 011-006, Light Engineering Zone, Mahindra World City - SEZ, Jaipur, assets
of Survey no. 233/15 to 233/30, Tiruthani Road, Ananthapuram-panchayat, Narasingharayani Pettah - Post
Chittoor, Andhra Pradesh, and Khasra No. 209/1/4/1, 209/1/5/1 & 209/1/5/3, situated at Village Jaychand Ka
Bans, Village Panchayat Harsuliya, Tehsil Phagi, Jaipur, Rajasthan.

v Rate of interest for current borrowings

The Company's current borrowings facilities have an effective weighted-average contractual rate calculated
using the interest rates effective for the respective borrowings as at reporting date is 6.66% p.a.(previous year:
7.42% p.a)

vi The quarterly returns/statements, in respect of the working capital limits have been filed by the Company with
the lenders and such returns/statements are in agreement with the books of account of the Company for the
respective periods.

vii Repayment terms: Cash credit facilities and working capital demand loans are repayable on demand with in a
period of less than 12 months. These loans have been used for the specific purpose for which they are taken as
at the year end.

viii Refer note 40 and 41 for disclosure of fair values in respect of financial liabilities measured at amortised cost
and analysis of their maturity profiles.

ix. Reconciliation of liabilities arising from financing activities*

x. Supplier Finance Arrangement

The Company has entered into supplier finance arrangements with certain banks ('finance providers') via Trade
Receivables Discounting System ('TReDS') to facilitate the early payment of dues on its behalf to the Company's
micro, small and medium enterprise vendors ('vendors'). The finance providers shall pay the amounts to the
vendor in respect of invoices owed by the Company and receive settlement from the Company at a later date.

By virtue of commercial agreement with the finance providers, the Company shall get extended credit period of
106-120 days (i.e. beyond the credit period of 0-45 days agreed with such vendors) to settle the payment with the
finance providers for which the finance providers shall charge applicable interest.

As per the terms of the arrangement, the Company gets discharged of its obligations towards the vendor once the
finance providers remit the payment to such vendor. The economic substance of the transaction is determined to
be financing in nature.

Non-cash changes

There were no material non-cash differences that affected the liabilities under the supplier finance arrangements.
Payments made by the finance providers to the vendors are treated as operating cash outflows because they
continue to be part of normal operating cycle and reflect the substance of the payment for purchase of goods
and services and settlement of dues to the finance provider by the Company under this arrangement is treated as
financing cash outflows.

Presentation in the statement of cash flows

The Company has classified the payment made by the finance providers under the aforementioned supplier
finance arrangement as operating cash outflows with corresponding financing cash inflows at the time the finance
providers pays the vendor, as in substance the Company has considered that the finance providers are acting as
payment agent on behalf of the Company. Later, when the Company subsequently pays the outstanding amount
to the finance providers, such cash outflow are presented under cash flows from financing activity.

i. Disclosures on lease pursuant to Ind AS 116 - Leases

The Company has leases for the factory lands, office premises, equipment, etc. Also, the Company has a leasehold
land situated at Plot No. PA-011-006, Mahindra Sez, Village Kalwara, Tehsil Sanganer Distt-Jaipur, which has been
taken on a lease for a period of 92 years in the year 2013.

Each lease generally imposes a restriction that, unless there is a contractual right for the Company to sublet the
asset to another party, the right-of-use asset can only be used by the Company. Leases contain an option to extend
the lease for a further term after mutual consent of both the parties. The Company is prohibited from selling or
pledging the underlying leased assets as security against the Company's other debts and liabilities.

The table below describes the nature of the Company's leasing activities by type of Right-of-use (ROU) asset
recognised on balance sheet:

iii. Lease payments not recognised as a liability

The Company has elected not to recognise a lease liability for short term leases (leases with an expected term
of 12 months or less) or for leases of low value assets. Payments made under such leases are expensed on a
straight-line basis. The Company does not have any liability to make variable lease payments for the right to use
the underlying asset recognised in the Financial Statement. The expense relating to payments not included in the
measurement of the lease liability for short term leases is ' 3.90 crores (previous year: ' 2.29 crores).

iv. Total cash outflow for leases for the year ended March 31, 2026 was '. 4.74 crores (previous year ' 2.95 crores).

(i) As at March 31, 2026, there is no amount due and outstanding to be transferred to the Investor Education and
Protection Fund (IEPF) by the Company. Unclaimed dividend, if any, shall be transferred to the Investor Education
and Protection Fund (IEPF) as and when they become due.

(ii) Refer note 40 and 41 for disclosure of accounting classification of each category of financial instruments and
other disclosures.

(iii) On the basis of confirmation obtained from suppliers who have registered themselves under the Micro, Small and
Medium Enterprise Development Act, 2006 (MSMED Act, 2006) and based on the information available with the
Company, dues disclosed as per the Micro, Small and Medium Enterprise Development Act, 2006 ('MSMED Act,
2006') at the year end are mentioned below. The same has been relied upon by the auditors.

(b) Sales of Rs. 1,385.73 crores (previous year: Rs. 1,304.26 crores), included in total revenue, which arose from sales
of two of the Company's largest customers. No other single customers contributed 10% or more to the Company's
revenue in current year ended March 31,2026 and previous year ended March 31,2025.

(c) Trade receivables and contract balances

The Company present the right to consideration in exchange for sale of promised products/ service as Trade receivable
in the Financials Statements. A receivable is a right to consideration that is unconditional upon passage of time. Trade
receivable are presented net of impairment (if any) in the Balance Sheet. Further, impairment of bad and doubtful
debts has been created based on expected credit loss method as prescribed in Ind AS 109. Refer note 41 for details of
expected credit loss for trade receivables under simplified approach.

(d) Revenue recognised in relation to contract liabilities

Ind AS 115 also requires disclosure of 'revenue recognised in the reporting period that was included in the contract
liability balance at the beginning of the period' and 'revenue recognised in the reporting period from performance
obligations satisfied (or partially satisfied) in previous periods. Same has been disclosed as below:

refund of sales tax/State Goods and services tax paid in cash, etc. Based on such policy, the Company had
recognised the incentive computed based on State Goods and Service Tax ('SGST') paid to Government of Andhra
Pradesh. Further, in terms of the Ind AS 20 - "Accounting for Government Grants and Disclosure of Government
Assistance", eligible incentive as mentioned above is credited to Statement of Profit and Loss and included under
the head "Other operating revenue" on accrual basis amounting to ' Nil (previous year ' 10.49 crores). Further, the
Company was also entitled for capital grant of ' 0.26 crores out of which ' 0.02 crores (previous year: ' 0.01 crores)
has been recognised as amortisation of government grant under the head "Other operating revenue" and balance
amount of ' 0.11 crores (previous year: ' 0.13 crores) has been recognised as deferred government grants under
head "Other liabilities".

(iii) During the current year, an amount of Rs. 18.14 crores (previous year: Rs. 11.26 crores) has been recognised under
the head "Other operating revenue'; which has been credited under electronic credit ledger under Remission of
Duties or Taxes on Export Products ('RODTEP') scheme.

(iv) During the current year, an amount of Rs. 12.77 crores (previous year: Rs. 4.32 crores) has been recognised under
the head "Other operating revenue', which has been credited under Duty Drawback scheme as envisaged under
The Customs Act 1962.

(v) Transaction price for all the contracts entered into by the Company are expected to be recognized upon
satisfaction of performance obligations within the next year.

(i) All the matters above other than guarantee given by the Company are subject to legal proceedings in the ordinary
course of business. The management is confident that its position to be upheld in the appeals pending before
various appellate authorities and no liability could arise on the Company on account of these proceedings.

(ii) During the year ended March 31, 2024, the Company had filed an appeal against the demand order received
from the Office of the Commissioner of Customs (Preventive), Jodhpur amounting to Rs. 70.10 crore (excluding
applicable interest, fine and penalty) for violating the'pre-import conditions'as envisaged in advance authorisation
licence pertaining to the period from October, 2017 to January 2019 vide notification no. 79/2017-Customs
dated 17/10/2017 of The Custom Act, 1962. The management of the Company, based on its overall assessment
and independent legal and tax opinion believe that the Company has a case on merit and question of law and
accordingly, has contested the matter in appellate authorities. Basis above, the management of the Company is of
the view that the order will not have any material impact on its standalone financial statements and in case of any
liability devolves on the Company, the Company will be entitled to take the credit of the tax amount. Considering
all available records, facts and opinion of legal and tax counsel, the Company has not identified any adjustments
in the standalone financial statements.

B Fair values hierarchy

The fair value of financial instruments as referred to in note (A) above has been classified into three categories
depending on the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices
in active markets for identical assets or liabilities (Level 1 measurements) and lowest priority to unobservable
inputs (Level 3 measurements).

The categories used are as follows:

Level 1: Quoted prices for identical instruments in an active market;

Level 2: Directly (i.e. as prices) or indirectly (i.e. derived from prices) observable market inputs, other than Level 1
inputs; and

Level 3: Inputs which are not based on observable market data (unobservable inputs). Fair values are determined
in whole or in part using a net asset value or valuation model based on assumptions that are neither supported
by prices from observable current market transactions in the same instrument nor are they based on available
market data.

The management has opted for designating the derivative assets and derivative liabilities to classify as fair value
through profit or loss as the respective gain/(loss) on the original asset/liability is routed through the statement
of profit and loss, therefore, the management intends to classify these derivate assets and derivative liabilities

Valuation process and technique used to determine fair value

i. The fair value of investments in mutual funds and units of REIT/INVITs (level 1) is based on the current bid price of
respective investment as at the balance sheet date. The mutual funds are valued using the closing NAV based on
the statements received from investee parties.

i. The Company enters into commodity contracts with financial institutions for hedging price risk of lead arising
from its import and export. Fair values of such contracts (level 2) are determined based on observable rates of
the commodity for similar contracts for the remaining maturity on the balance sheet date. The valuation of such
instruments is carried out through the rates (marked to market) confirmed by the respective banks as at the
balance sheet date.

iii. There are no financial instruments measured at fair value through other comprehensive income.

B.2 Fair value of instruments measured at amortised cost

Fair value of instruments measured at amortised cost for which fair value is disclosed is as follows, these fair values
are calculated using Level 3 inputs:

The management assessed that fair values of current financial assets, cash and cash equivalents, other bank balances,
trade receivables, short term borrowings, loans, trade payables, current lease liabilities and other current financial
liabilities approximate their respective carrying amounts largely due to the short-term maturities of these instruments.
The fair value of the financial assets and liabilities is disclosed at the amount at which the instrument could be
exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following
methods and assumptions were used to estimate the fair values:

i. Non-current loans and non-current financial assets are evaluated by the Company based on parameters such as

ii. The fair values of the Company's fixed interest-bearing liabilities, loans and receivables are determined by applying
discounted cash flows ('DCF') method, using discount rate that reflects the issuer's borrowing rate as at the end of
the reporting period. The own non-performance risk as at March 31, 2026 was assessed to be insignificant.

iii. All the other long term borrowing/ short term borrowing facilities availed by the Company are variable rate facilities,
and are subject to changes in underlying interest rate indices. Further, the credit spread on these facilities are subject
to change with changes in Company's creditworthiness. The management believes that the current rate of interest
on these loans are in close approximation from market rates applicable to the Company. Therefore, the management
estimates that the fair value of these borrowings are approximate to their respective carrying values.

Note 41 : FINANCIAL RISK MANAGEMENT
Risk Management

The Company's activities expose it to market risk, liquidity risk and credit risk. The Company's Board of Directors has
overall responsibility for the establishment and oversight of the Company's risk management framework. This note
explains the sources of risk which the entity is exposed to and how the entity manages the risk and the related impact
in the financial statements.

The Company's risk management is carried out by a central treasury department (of the Company) under policies
approved by the board of directors. The board of directors provides written principles for overall risk management, as
well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk and investment of
excess liquidity.

I. Credit risk

Credit risk is the risk that a counterparty fails to discharge its obligation to the Company. The Company's exposure to
credit risk is influenced mainly by loans, cash and cash equivalents, trade receivables, derivative financial instruments
and other financial assets measured at amortised cost. The Company continuously monitors defaults of customers and
other counterparties and incorporates this information into its credit risk controls.

(a) Credit risk management

The Company assesses and manages credit risk based on internal credit rating system. Internal credit rating is
performed for each class of financial instruments with different characteristics. The Company assigns the following
credit ratings to each class of financial assets based on the assumptions, inputs and factors specific to the class of
financial assets.

(i) Low credit risk

(ii) Moderate credit risk

(iii) High credit risk

Based on business environment in which the Company operates, a default on a financial asset is considered when
the counter party fails to make payments within the agreed time period as per contract. Loss rates reflecting defaults
are based on actual credit loss experience and considering differences between current and historical economic
conditions.

Assets are written off when there is no reasonable expectation of recovery, such as a debtor declaring bankruptcy or
a litigation decided against the Company. The Company continues to engage with parties whose balances are written

II. Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in raising funds to meet commitments
associated with financial instruments that are settled by delivering cash or another financial asset. Liquidity risk
may result from an inability to sell a financial asset quickly at close to its fair value.

The Company has an established liquidity risk management framework for managing its short term, medium term
and long term funding and liquidity management requirements. The Company's exposure to liquidity risk arises
primarily from mismatches of the maturities of financial assets and liabilities. The Company manages the liquidity
risk by maintaining adequate funds in cash and cash equivalents. The Company also has adequate credit facilities
agreed with banks to ensure that there is sufficient cash to meet all its normal operating commitments in a timely
and cost-effective manner. Further, the Company has implemented supplier finance arrangements with multiple
banks which has improved the Company's working capital. The Company has no significant concentration on

III. Market risk

(a) Foreign currency risk

The Company is exposed to foreign exchange risk in the normal course of its business. Multiple currency
exposures arise from commercial transactions like sales, purchases, borrowings, recognized financial assets and
liabilities (monetary items). Certain transactions of the Company act as natural hedge as a portion of both assets
and liabilities are denominated in similar foreign currencies. For the remaining exposure to foreign exchange
risk, the Company adapts the policy of selective hedging based on risk perception of management. Foreign
exchange hedging contracts are carried at fair value. The Company's exposure to foreign currency changes for all
other currencies which are not stated below is not material. Foreign currency exposures that are not hedged by
derivative instruments outstanding as on the balance sheet date are as under:

Foreign exchange derivative contracts

The Company uses derivative financial instruments exclusively for hedging financial risks that arise from its commercial
business or financing activities. The Company's Corporate Treasury team manages its foreign currency risk by hedging
transactions that are expected to occur within 12 to 15 months for hedges of forecasted sales, purchases and capital
expenditures. When a derivative is entered into for the purpose of being a hedge, the Company negotiates the terms of
those derivatives to match the terms of the hedged exposure. For hedges of forecast transactions the derivatives cover
the period of exposure from the point the cash flows of the transactions are forecasted up to the point of settlement of
the resulting receivable or payable that is denominated in the foreign currency. All identified exposures are managed
as per the policy duly approved by the Board of Directors.

(c) Price risk
Exposure

The Company exposure to price risk arises from investments held and classified in the balance sheet either as fair
value through other comprehensive income or at fair value through profit or loss. To manage the price risk arising
from investments, the Company diversifies its portfolio of assets. There are investments in mutual funds which are
measured at fair value through profit and loss.

Derivative financial instruments are considered to have low credit risk since the contracts are with reputable financial
institutions.

Trade receivables

Trade receivables are generally unsecured and non-interest bearing. There is no significant concentration of credit
risk. The Company's credit risk management policy in relation to trade receivables involves periodically assessing the
financial reliability of customers, taking into account their financial position, past experience and other factors. The
utilization of credit limit is regularly monitored. The Company's credit risk is mainly confined to the risk of customers
defaulting against credit sales made. Outstanding trade receivables are regularly monitored by credit monitoring
Company. The Company has also taken advances from its customers, which mitigate the credit risk to an extent. In
respect of trade receivables, the Company recognises an impairment for lifetime expected credit losses after evaluating
the individual probabilities of default of its customers which are duly based on the inputs received from the marketing
teams of the Company.

Investment in bonds, mutual funds and units of REIT/INVITs

Investment in bonds, mutual funds and units of REIT/INVITs are consider to have low credit risk since, the Company
deals with high rated, quoted and stable instruments.

Other financial assets measured at amortised cost

Other financial assets measured at amortised cost includes loans to others, loans to employees, security deposits,
and others. Credit risk related to these other financial assets is managed by monitoring the recoverability of such
amounts continuously, while at the same time internal control system are in place ensure the amounts are within
defined limits.

(b) Expected credit losses for financial assets

(i) Financial assets (other than trade receivables)

Company provides for expected credit losses on financial assets other than trade receivables by assessing individual
financial instruments for expectation of any credit losses.

For cash & cash equivalents, other bank balances and derivative financial instruments - Since the Company deals
with only high-rated banks and financial institutions, credit risk in respect of cash and cash equivalents, derivative
financial instruments, other bank balances and bank deposits is evaluated as very low.

For security deposits paid - Credit risk is considered low because the Company is in possession of the underlying
asset.

For other financial assets - Credit risk is evaluated based on Company knowledge of the credit worthiness of those
parties and loss allowance is measured. For such financial assets, the Company policy is to provide for 12 month

(ii) Expected credit loss for trade receivables under simplified approach

The Company measures the loss allowance at an amount equal to lifetime expected credit losses using a simplified
approach. Refer note 12 for ageing of trade receivables.

Note 42 : CAPITAL MANAGEMENT

For the purpose of the Company's capital management, capital includes issued capital and all other equity reserves
attributable to the equity shareholders of the Company. The primary objective of the Company when managing
capital is to safeguard its ability to continue as a going concern and to maintain an optimal capital structure so as to
maximize shareholder value.

As at March 31, 2026, the Company is not subject to any externally imposed capital requirements. In order to maintain
or achieve an optimal capital structure, the Company allocates its capital for distribution as dividend or re-investment
into business based on its long term financial plans. The Company's management reviews the capital structure of the
Company on a periodic basis. As part of review, the management considers the cost of capital and risk associated with
each class of capital. The Company also evaluates its gearing measures like Debt Equity Ratio, Debt Service Coverage
Ratio, Interest Service Coverage Ratio, Debt to EBIDTA Ratio to arrive at an appropriate level of debt and accordingly
evolve its capital structure.

Note 43 : EMPLOYEE BENEFITS PLANS
(i) Defined Contribution Plans

The Company makes contribution towards employees' provident fund and employees' deposit linked insurance
scheme for qualifying employees. Under the schemes, the Company is required to contribute a specified

Earned leaves - Long term leaves includes earned leaves. These have been provided on accrual basis, based on year
end actuarial valuation.

(ii) Defined benefits plans

The employees' gratuity fund scheme managed by a trust namely 'Gravita India Limited Employees Gratuity Trust' is
defined benefit plan. The gratuity plan provides for a lump sum payment to the employees at the time of separation
from the service on completion of vested year of employment i.e. five years. The liability of gratuity plan is determined
based on actuarial valuation as at the end of each financial year using the Projected Unit Credit Method, which
recognises each period of service as giving rise to additional unit of employees benefit entitlement and measures
each unit separately to build up the final obligation.

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

Investment Risk - The probability or likelihood of occurrence of losses relative to the expected return on any particular
investment.

Salary Risk - The present value of defined benefit plan is calculated with the assumption of salary increase rate of plan
participants in future. Deviation in rate of increase in salary in future for plan participants from the rate of increase in
salary used to determine the present value of obligation will have a bearing on the plan's liability.

Interest Risk - The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result in an
increase in the ultimate cost of providing the above benefit and will thus result in an increase in value of the liability.

Longevity Risk - The present value of defined benefit plan liability is calculated by reference to the best estimate of
the mortality of plan participants both during and after employment. An increase in the life expectancy of the plan
participants will increase the plans liability.

(ii) Detail of transaction and balance outstanding with related parties

The transactions with 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 (other than loan and guarantees). The settlement
for these balances occurs through payment. For the year ended March 31, 2026, the Company has not recorded
any impairment of receivables relating to amounts owed by related parties (March 31, 2025: Nil). This assessment is
undertaken each financial year through examining the financial position of the related party and the market in which
the related party operates.

Note 47 : COMPLIANCE WITH FOREIGN EXCHANGE MANAGEMENT ACT, 1999

Trade payables as at March 31, 2026 include amounts aggregating to Rs 115.46 crores (previous year: Rs. 144.81 crores)
respectively, situated outside India. Out of this aforesaid, trade payables amounting to Rs. 6.91 (previous year: Rs.
6.20 crores) crores are pending for more than 180 days. These balances are under settlement with AD Bank under the
regulations of Reserve Bank of India. Based on the information available till date, the management does not expect
any adverse consequences to the Company.

Note 48 : ACQUISITION OF SUBSIDIARY

During the year ended March 31,2026, Gravita India Limited ("the Company") acquired 98.95% equity stake in Rashtriya
Metal Industries Limited ("RMIL") for an aggregate consideration of Rs. 559.08 crore, pursuant to a Share Purchase
Agreement executed on March 12, 2026. RMIL is engaged in the manufacture of copper and copper alloy products,
with an integrated manufacturing facility located at Sarigam, Gujarat. In the standalone financial statements of the
Company, the investment in RMIL has been accounted for at cost in accordance with Ind AS 27 Separate Financial
Statements. The acquisition has resulted in RMIL becoming a subsidiary of the Company with effect from March 12,
2026. The purchase price allocation exercise and related fair value adjustments, including goodwill recognition, have
been considered in the consolidated financial statements of the Company.

Note 49 :

As per transfer pricing legislation under section 92 - 92F of the Income -tax Act, 1961, the Company is required to use
certain specific methods in computing arm's length price of international transactions with associated enterprises
and maintain documentation in this respect. Since law requires existence of such information and documentation to
be contemporaneous in nature, the Company has updated the Transfer Pricing study to ensure that the transactions
with associate enterprises undertaken are at "Arms length basis" Based on the preliminary study and assessment for
the current year, the management is of the view that the same would not have a material impact on these standalone
financial statements.

Note 50 :

Disclosure relating to provisions recorded in these standalone financial statements pursuant to the Ind AS 37 -
Provisions. Contingent Liabilities and Contingent Assets

Note 51 :

Segment information has been provided under the material accounting policies and other explanatory information of
the consolidated financial statement for the year ended March 31, 2026 as per para 4 of Indian Accounting Standard
(Ind AS) 108 "Operating Segments', specified under Section 133 of the Companies Act, 2013.

Note 52

In the opinion of Board of Directors, current assets have a value on realisation in the ordinary course of business at least
equal to the amount at which they are stated in the balance sheet and provisions for all known/ expected liabilities
have been made.

Note 53

During the previous year ended March 31, 2025, the Company did Qualified Institutional Placement (QIP) of 47,70,537
Equity Shares of the face value of Rs. 2 each at a premium of Rs. 2,094.20 per share aggregating to Rs. 1,000.00 crores
for certain purposes as stated in the Placement Document. Issue expenses of Rs. 18.40 crores had been adjusted with
the securities premium account. Out of the above QIP proceeds (net of issue expenses), Rs 981.60 crores have been
fully utilised for the repayment of borrowings, working capital requirement, payment of share issue expenses and
general corporate purpose as on March 31, 2026.

Note 54 : OTHER STATUTORY INFORMATION

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against
the Company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988)
and the rules made thereunder.

(ii) The Company has not been declared wilful defaulter by any bank or financial institutions or other lenders.

(iii) The Company does not have any transactions with companies struck off under section 248 of the Companies Act,
2013 or section 560 of the Companies Act, 1956.

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

(v) The Company has complied with number of layers prescribed under clause (87) of section 2 of the Act read with
Companies (Restriction on number of Layers) Rules, 2017.

(vi) The Company does not have any such transaction which is not recorded in the books of accounts that has been
surrendered or disclosed as income during the current and preceding year in the tax assessments under the
Income-tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income-tax Act, 1961).

(vii) The Company has not traded or invested in crypto currency or virtual currency during the current and the
preceding financial year.

(viii) 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:

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

- provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(ix) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding
Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

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

- provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(x) The Ministry of Corporate Affairs (MCA) has prescribed a requirement for companies under the proviso to Rule
3(1) of the Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules 2021
requiring companies, which uses accounting software for maintaining its books of account, shall use only such
accounting software which has a feature of recording audit trail of each and every transaction, creating an edit log
of each change made in the books of account along with the date when such changes were made and ensuring
that the audit trail cannot be disabled.

The Company, in respect of the financial year commencing on April 1, 2025, has used an accounting software for
maintaining books of accounts. The audit trail (edit log) was enabled and operated throughout the year at application
level for such software. The Company has obtained the 'Independent Service Auditor's Assurance Report on the
Description of Controls, their Design and Operating Effectiveness' (Type 2 report' issued in accordance with ISAE
3000 (Revised), Assurance Engagements Other than Audits or Reviews of Historical Financial Information) for the year
commencing on April 1, 2025. However, the report of the service auditor did not demonstrate whether the audit trail
feature specifically captures the details of what data was changed at the database level.

Further, the Company, has used accounting software for maintenance of employee records which is operated by
a third-party software service provider. The audit trail (edit log) was enabled and operated throughout the year at
application level for such software. The Company has obtained the 'Independent Service Auditor's Assurance Report

on the Description of Controls, their Design and Operating Effectiveness'(Type 2 report'issued in accordance with ISAE
3000 (Revised), Assurance Engagements Other than Audits or Reviews of Historical Financial Information) for the year
commencing on April 1, 2025. However, the report of the service auditor did not demonstrate whether the audit trail
feature specifically captures the details of what data was changed at the database level.

Note 55

The Government of India has consolidated 29 existing labour legislations into a united framework comprising four
Labour Code viz Code on wages 2019, Code on Social Security 2020, Industrial Relation Code 2020, and Occupational
Safety, Health and Working Condition Code 2020 (collectively referred to as the New Labour Codes) These Codes have
been made effective from November 21, 2025. The corresponding supporting rules under these codes are yet to be
notified. The Company accounted for the incremental liability for its employees in the year ending March 31, 2026.
Once the Government notifies the Central and State Rules, the Company will evaluate the impact on the measurement
of employee benefits and provide the appropriate accounting treatment, if any.

Note 56

The figures of previous year have been regrouped/ reclassed to make them comparative with those of current year
wherever considered necessary. The impact of such reclassification/regrouping is not material to the standalone
financial statements.