3.21 Provisions and contingencies

A provision is recognised in the financial statements
where there exists a present obligation as a result
of a past event, the amount of which can be reliably
estimated, and it is probable that an outflow of
resources would be necessitated in order to settle the
obligation. If the effect of the time value of money is
material, provisions are discounted using a current
pre-tax rate that reflects, when appropriate, the risks
specific to the liability. When discounting is used, the
increase in the provision due to the passage of time is
recognised as a finance cost. Provisions are reviewed
at each balance sheet date and adjusted to reflect
the current best estimates. Contingent liabilities
are not recognised but are disclosed in the notes
unless the outflow of resources is considered to be
remote. Contingent assets are neither recognised
nor disclosed in the financial statements.

3.22 Equity, reserves and dividend payments

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

Retained earnings include current and prior period
retained profits. All transactions with owners of the
Company are recorded separately within equity.

Dividend payable to equity shareholders are included
in other current financial liabilities when the dividends
have been approved in a general meeting prior to the
reporting date.

3.23 Earnings per share

Basic earnings or loss per share are calculated
by dividing the net profit or loss for the period
attributable to equity shareholders 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 such as bonus issue, bonus element in a
rights issue, buyback, share split, and reverse share
split (consolidation of shares) that have changed
the number of equity shares outstanding, without a
corresponding change in resources.

For the purpose of calculating diluted earnings or
loss 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.

3.24 Fair value measurement

The Company measures financial instruments such
as investments in mutual funds, investment in
certain equity shares etc. at fair value at each balance
sheet date.

Fair value is the price that would be received to
sell an asset or paid to transfer a liability at the
measurement date.

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 the purpose of fair value disclosures, the
Company has determined classes of assets and
liabilities on the basis of the nature, characteristics
and risks of the asset or liability and the level of the
fair value hierarchy as explained above.

3.25 Financial instruments

I. Financial assets

a. Initial recognition and measurement

All financial assets are recognised initially at
fair value plus, in case of financial assets not
recorded at fair value through profit or loss,
transaction costs that are attributable to the
acquisition of the financial asset, which are not
at fair value through profit and loss, are added to
fair value on initial recognition. Transaction costs
of financial assets carried at fair value through
profit or loss are expensed in statement of profit
and loss. However, trade receivables that do not
contain a significant financing component are
measured at transaction price.

b. Subsequent measurement

(i) Financial assets 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.

(ii) Financial assets 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.

(iii) Financial assets at fair value through profit or
loss (FVTPL)

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

c. Impairment of financial assets

(i) The Company assesses on a forward looking
basis the expected credit losses (ECL) associated
with its assets measured at amortised cost
and assets measured at fair value through
other comprehensive income. The impairment
methodology applied depends on whether there
has been a significant increase in credit risk.
Note 45 details how the Company determines
whether there has been a significant increase in
credit risk.

(ii) Investments in subsidiaries, associates and
joint ventures are carried at cost/deemed cost
applied on transition to Ind AS, less accumulated
impairment losses, if any. Where an indication
of impairment exists, the carrying amount of
investment is assessed and an impairment
provision is recognised, if required immediately
to its recoverable amount, being the higher
of value in use or fair value less costs to sell.
On disposal of such investments, difference
between the net disposal proceeds and carrying
amount is recognised in the statement of profit
and loss.

d. De-recognition of financial assets

A financial asset is derecognised when:

- The Company has transferred the right to
receive cash flows from the financial assets or

- Retains the contractual rights to receive
the cash flows of the financial assets, but
assumes a contractual obligation to pay the
cash flows to one or more recipients.

Where the entity transfers the financial asset, it
evaluates the extent to which it retains the risk
and rewards of the ownership of the financial
assets. If the entity transfers substantially
all the risks and rewards of ownership of the
financial asset, the entity shall derecognise
the financial asset and recognise separately as
assets or liabilities any rights and obligations
created or retained in the transfer. If the entity
retains substantially all the risks and rewards of
ownership of the financial asset, the entity shall
continue to recognise the financial asset.

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

II. Financial liabilities

a. Initial recognition and subsequent
measurement

All financial liabilities are recognized initially
at fair value and in case of borrowings and
payables, net of directly attributable cost.

Financial liabilities are subsequently carried
at amortized cost using the effective interest
method. For trade and other payables maturing
within one year from the balance sheet date,
the carrying amounts approximate fair value
due to the short maturity of these instruments.
Changes in the amortised value of liability are
recorded as finance cost.

III. Fair value of financial instruments

In determining the fair value of its financial
instruments, the Company uses a variety of
methods and assumptions that are based
on market conditions and risks existing at
each reporting date. The methods used to
determine fair value include discounted cash
flow analysis, available quoted market prices. All
methods of assessing fair value result in general
approximation of value, and such value may vary
from actual realization on future date.

IV. 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.

3.26 Derivative financial instruments

The Company enters into a variety of derivative
financial instruments to manage its exposure to
interest rate and foreign exchange rate risks, including
foreign exchange forward contracts, interest rate
swaps and cross currency swaps. Further details
of derivative financial instruments are disclosed in
note 45.

Derivatives are initially recognised at fair value at the
date the derivative contracts are entered into and
are subsequently re-measured to their fair value at
the end of each reporting period. The resulting gain
or loss is recognised in statement of profit and loss
immediately unless the derivative is designated and
effective as a hedging instrument, in which event
the timing of the recognition in the statement of
profit and loss depends on the nature of the hedging
relationship and the nature of the hedged item.

3.27 Segment reporting

Operating segments are reported in a manner
consistent with the internal reporting provided to
the chief operating decision maker. The Company
has mainly two operating/reportable segments:
Packaging Products segment and Investment
Property segment. In identifying these operating
segments, management generally follows the
company's service lines representing its main
products and services. Each of these operating
segments is managed separately as each requires
different technologies, marketing approaches and
other resources.

All inter-segment transfers are carried out at arm's
length prices based on prices charged to unrelated
customers in standalone sales of identical goods
or services.

For management purposes, the Company uses
the same measurement policies as those used in
its financial statements. In addition, unallocated
assets which are not directly attributable to the
business activities of any operating segment are
not allocated to a segment.

3.28 Significant accounting judgements, estimates
and assumptions

The preparation of the Company's financial
statements requires management to make
judgments, estimates and assumptions that affect
the reported amounts of revenues, expenses, assets
and liabilities, and the accompanying disclosures, and
the disclosure of contingent liabilities. Uncertainty
about these assumptions and estimates could result
in outcomes that require a material adjustment to
the carrying amount of assets or liabilities affected in
future periods.

3.29 Non-Current Assets Held for Sale and
Discontinued operations:

Non-current assets or disposal groups comprising
of assets and liabilities are classified as 'held for sale'
when all the following criteria are met:

(i) Decision has been made to sell,

(ii) The assets are available for immediate sale in its
present condition,

(iii) The assets are being actively marketed and

(iv) Sale has been agreed or is expected to be
concluded within 12 months of the balance
sheet date.

Subsequently, such non-current assets and disposal
groups classified as 'held for sale' are measured at
the lower of its carrying value and fair value less costs
to sell.

Non-current assets held for sale are not depreciated
or amortised.

Discontinued operation is a component of the
Company that has been disposed of or classified as
held for sale.

3.30 Estimates and assumptions

The key assumptions concerning the future and other
key sources of estimation uncertainty at the reporting
date, that have a significant risk of causing a material
adjustment to the carrying amounts of assets and
liabilities within the next financial year, are described
below. The Company based its assumptions and
estimates on parameters available when the financial
statements were prepared. Existing circumstances
and assumptions about future developments,
however, may change due to market changes or
circumstances arising that are beyond the control
of the Company. Such changes are reflected in the
assumptions when they occur.

(i) Estimation of defined benefit obligation

The cost of the defined benefit plan and other
post-employment benefits and the present
value of such obligation are determined using
actuarial valuations. An actuarial valuation
involves making various assumptions that may
differ from actual developments in the future.
These include the determination of the discount
rate, future salary increases, mortality rates and
attrition rate. Due to the complexities involved
in the valuation and its long-term nature, a
defined benefit obligation is highly sensitive to
changes in these assumptions. All assumptions
are reviewed at each reporting date.

(ii) Estimation of current tax and deferred tax

Management judgment is required for the
calculation of provision for income - taxes and
deferred tax assets and liabilities. The Company
reviews at each balance sheet date the carrying
amount of deferred tax assets. The factors used
in estimates may differ from actual outcome
which could lead to adjustment to the amounts
reported in the financial statements.

(iii) Useful lives of depreciable assets

Management reviews its estimate of the useful
lives of depreciable assets at each reporting
date, based on the expected utility of the assets.
Uncertainties in these estimates relate to
technological obsolescence that may change the
utility of certain property, plant and equipment.

(iv) Impairment of trade receivables

Trade receivables do not carry any interest and
are stated at their normal value as reduced
by appropriate allowances for estimated
irrecoverable amounts. Individual trade
receivables are written off when management
deems them not to be collectible. Impairment is
recognised based on the expected credit losses,
which are the present value of the cash shortfall
over the expected life of the financial assets.

(v) Fair value measurement

Management uses valuation techniques to
determine the fair value of financial instruments
(where active market quotes are not available) and
non-financial assets. This involves developing
estimates and assumptions consistent with

how market participants would price the
instrument. Management bases its assumptions
on observable data as far as possible but this is
not always available. In that case management
uses the best information available. Estimated
fair values may vary from the actual prices that
would be achieved in an arm's length transaction
at the reporting date (refer note 46).

(vi) Impairment of Goodwill

Goodwill is tested for impairment on an annual
basis and whenever there is an indication that
the recoverable amount of a cash generating
unit is less than its carrying amount based on a
number of factors including operating results,
business plans, future cash flows and economic
conditions. The recoverable amount of cash
generating units is determined based on higher
of value-in-use and fair value less cost to sell.
The goodwill impairment test is performed at
the level of the cash-generating unit or groups
of cash-generating units which are benefitting
from the synergies of the acquisition and which
represents the lowest level at which goodwill is
monitored for internal management purposes.

Market related information and estimates are
used to determine the recoverable amount. Key
assumptions on which management has based
its determination of recoverable amount include
estimated long term growth rates, weighted
average cost of capital and estimated operating
margins. Cash flow projections take into account
past experience and represent management's
best estimate about future developments.

(c) Terms and rights attached to equity shares

The Company has issued only one class of equity shares having par value of H 2 per share. Each holder of equity
share is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The dividend
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 holder of equity shares will be entitled to receive remaining
assets of the Company, after settling of all liabilities. The distribution will be in proportion to the number of equity
shares held by the shareholders.

(e) The Company has not issued any equity shares as bonus or for consideration other than cash during the period of
five years immediately preceding 31 March 2025.

(f) The above figure of subscribed and paid up capital includes application and allotment money received on forfeited
shares amounting to H 0.04 lakh (Previous year H 0.04 lakh).

(g) During the year 2020-21, pursuant to the Buyback Offer dated 21st September 2020, the Company, has bought
back 75,99,014 Equity Shares. As a result, the Paid-up Capital of the Company stands reduced from H 1,445.93
lakh to H 1,293.95 lakh and from Securities Premium Account H 151.98 lakh was transferred to Capital Redemption
Reserve on buyback and cancellation of equity shares. The premium on buy back , buyback expenses and tax on
distributable profit (as per section 115 QA of the income tax act 1961) of H 7,688.00 lakh was utilised from Securities
Premium Account.

Notes:

1. Loans are secured by way of hypothecation of first pari-passu charge on movable fixed assets (both present and
future) pertaining to the glass plants of the Company situated at Sanathnagar and Bhongir in Telangana. Further,
this is secured by first pari-passu charge by way of mortgage of deposit of title deeds of immovable properties
(both present and future) of glass plants of the Company situated at Sanathnagar and Bhongir in Telangana.

» Term Loans aggregating to Nil (previous year H 2,000.97 lakh) has been fully repaid.

» Term Loans aggregating to H6,161.86 lakh (previous year H 10,004.82 lakh) are repayable in 3 half yearly instalments
from June 2025 to June 2026.

» Term Loans aggregating to H 5,300.00 lakh (previous year H 6,800.00 lakh) are repayable in total 12 quarterly
instalments from June 2025 to March 2028.

» Term Loans aggregating to H 14,499.73 lakh (previous year H 15,700.00 lakh) are repayable in total 18 quarterly
instalments from June 2025 to Sept 2029.

» Term Loans aggregating to H 9,250.00 lakh (previous year H 9,812.50 lakh) are repayable in total 20 quarterly
instalments from June 2025 to March 2030.

» Term Loans aggregating to H 9,000.00 lakh (previous year H 9,750.00 lakh) are repayable in total 11 half yearly
instalments from Sept 2025 to Sept 2030.

2. Loan is secured by first pari-passu charge on fixed assets of the Company located at Sitarampur, Isnapur, PO Medak
District, Hyderabad, Telangana.

» Term Loans aggregating to H 4,000.00 lakh (previous year H 5,500.00 lakh) are repayable in total 4 half yearly
instalments from June 2025 to December 2026.

3. Deferred payment liabilities from Telanagan State Government (unsecured) is in respect of value added tax and
central sales tax liabilities pertaining to the years 1999-2000 to 2012-2013 and are repayable by the end of financial
year 31 March 2030.

Deferred payment liabilities aggregating to H 1,790.58 lakh (previous year H 2,023.48 lakh) are repayable in yearly
instalments from June 2025 to March 2030.

Details of security and term of repayment of each type of borrowing:

Secured borrowings

a) Cash credit facilities:

Cash credit facilities from banks is repayable on demand and is secured by hypothecation of all current assets
including stocks and book debts, present and future, and further secured by second pari-passu charge on all the
movable fixed assets (both present and future) of the Company situated at Sanathnagar plant and Bhongir plant.

b) Working capital loan facilities:

Working capital demand loan from banks repayable within 30 days from disbursement and is secured by
hypothecation of all current assets including stocks and book debts including advance to suppliers present and
future, and further secured by second pari-passu charge on all the movable fixed assets excluding vehicles (both
present and future) of the Company situated at Sanathnagar plant and Bhongir plant including speciality division.
The interest rate for the working capital demand loan is 1 Month MCLR.

c) The company has been sanctioned a working capital limit in excess of H 5 crore, in aggregate, at points of time
during the year, from bank on the basis of security of current assets. The Company has filed quarterly returns
or statements with the banks in lieu of the sanctioned working capital facilities, which are in agreement with the
books of account other than those as set out below.

Note 45 - Financial instruments and risk review

Capital management

The Company manages its capital to be able to continue as a going concern while maximising the returns to shareholders
through optimisation of the debt and equity balance. The capital structure consists of debt which includes the borrowings
as disclosed in note 22 and 28 and net cash and cash equivalents as disclosed in note 15 and equity attributable to
equityholders of the Company, comprising issued share capital, reserves and retained earnings as disclosed in the
Statement of changes in equity. For the purpose of calculating gearing ratio, debt is defined as non current and current
borrowings (excluding derivatives). Equity includes all capital and reserves of the Company attributable to equity holders
of the Company. The Company is not subject to externally imposed capital requirements. The Board reviews the capital
structure and cost of capital on an annual basis but has not set specific targets for gearing ratios. The risks associated
with each class of capital are also considered as part of the risk reviews presented to the Audit Committee and the Board
of Directors.

Financial risk management objective

The Company is exposed to various risks in relation to financial instruments. The main types of risks are market risk,
credit risk and liquidity risk. The Company is not engaged in speculative treasury activities but seeks to manage risk and
optimise interest and commodity pricing through proven financial instruments.

The use of any derivative is approved by the management, which provide guidelines on the acceptable levels of interest
rate risk, credit risk, foreign exchange risk and liquidity risk and the range of hedging requirement against these risks.

Credit risk:

Credit risk is the risk that a counter party will not meet its obligations under a financial instrument or customer contract,
leading to financial loss. The Company is exposed to credit risk for receivables, cash and cash equivalents, short term
investments, financial guarantee and derivative financial instruments.

Cash and cash equivalents and short term investments

The Company considers factors such as track record, size of institution, market reputation and service standard to
select the banks with which deposits are maintained. Generally the balances are maintained with the institutions with
which the Company has also availed borrowings. The Company does not maintain significant deposit balances other
than those required for its day to day operations.

Trade receivables

The Company extends credits to customer in normal course of the business. The Company considers the factors such
as credit track record in the market of each customer and past dealings for extension of credit to the customer. The
Company monitors the payment track record of each customer and outstanding customer receivables are regularly
monitored. The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers
are located at several jurisdiction and industries and operate in large independent markets. The Company also takes
advances and security deposits from customers which mitigate the credit risk to an extent.

The average credit period taken on sales of goods is 30 to 90 days. Generally, no interest has been charged on
the receivables. Allowances against doubtful debts are recognised against trade receivables based on estimated
irrecoverable amounts determined by reference to past default experience of the counterparty and an analysis of the
counterparty's current financial position.

Before accepting any new customer, the Company uses an internal credit system to assess the potential customer's
credit quality and defines credit limits by customer. Limits attributed to customers are reviewed periodically. There are
three customers who represent more than 10 per cent of total net revenue from operations during the year.

The Company does not hold any collateral or other credit enhancements over any of its trade receivables nor does it
have a legal right of offset against any amounts owed by the Company to the counterparty.

Expected credit loss:

The Company has used a practical expedient by computing the expected credit loss allowance for trade receivables
based on a provision matrix. The provision matrix takes into account historical credit loss experience and adjusted for
forward-looking information. The expected credit loss allowance is based on the ageing of the days the receivables are
due and the rates as given in the provision matrix. The provision matrix at the end of the reporting period is as follows:

Financial guarantee

The Company has not given any financial guarantee.

Liquidity risk:

Liquidity risk reflects the risk that the Company will have insufficient resources to meet its financial liabilities as they
fall due.

The Company's objective is to maintain optimum levels of liquidity to meet its cash and collateral requirements. The
Company relies on a mix of borrowings, capital infusion and excess operating cash flows to meet its needs for funds.
The current committed lines of credit are sufficient to meet its short to medium term expansion needs. The Company
monitors rolling forecasts of its liquidity requirements to ensure that it has sufficient cash to meet operational needs
while maintaining sufficient headroom on its undrawn committed borrowing facilities so that it does not breach
borrowing limits.

The table below provides undiscounted cash flows towards non-derivative financial liabilities into relevant maturity
based on the remaining period at the balance sheet date to the contractual maturity date and, where applicable, their
effective interest rates.

Market risk

The Company's activities expose it primarily to the financial risks of changes in foreign currency exchange rates and
interest rates. The Company enters into a variety of derivative financial instruments to manage its exposure to foreign
currency risk, including:

Forward foreign exchange contract to hedge the exchange rate risk arising on the export and imports of its products.

Forward foreign exchange derivative contract to hedge the exchange rate risk arising on translation of payment of
foreign currency loan.

Forward foreign exchange interest rate swap contract to hedge the exchange rate risk arising on translation of payment
on interest.

Currency risk

The Company undertakes various transactions denominated in foreign currencies, consequently, exposure to exchange
rate fluctuations arise. Exchange rate exposures are managed within approved policy parameters utilising forward
foreign exchange contracts.

The Company transacts business primarily in Indian Rupee, USD, EUR and GBP. The Company has obtained foreign
currency loans and has foreign currency payables and receivables and is therefore, exposed to foreign exchange risk.
Certain transactions of the Company act as a 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 adopted a policy of
selective hedging based on risk perception of the management. Foreign exchange hedging contracts are carried at
fair value.

The carrying amounts of the Company's foreign currency denominated monetary assets and monetary liabilities at the
end of the reporting period are as follows:

This is mainly attributable to the exposure outstanding on foreign currency receivables and payables in the Company
at the end of each reporting period.

Interest rate risk

The Company's exposure to the risk of changes in market interest rates relates primarily to long term debts. Its objective
in managing its interest rate risk is to ensure that it always maintain sufficient head room to cover interest payment from
anticipated cash flows which is regularly reviewed by the board/nominated committee as well.

The following table demonstrates the sensitivity in the interest rate with all other variables held constant. The impact on
the Company's profit before tax and other comprehensive income due to changes in the interest rates is given below:

Commodity risk

The Company is exposed to the movement in the price of key raw material and other traded goods in the domestic
and international markets. The Company has in place policies to manage exposure to fluctuation the prices of key raw
materials used in operations. The Company enter into contracts for procurement of raw material and traded goods, most
of the transactions are short term fixed price contract and a few transactions are long term fixed price contracts.

Other financial instruments

The carrying amount of the financial assets and liabilities carried at amortised cost is considered a reasonable
approximation of fair value.

Note 47 - Segment reporting

Identification of segment:

The company operating business are organised and managed separately according to the nature of the products and
services provided, with each segment representing a strategic business unit that offers different products and serves
different markets.

The Company has identified business segment as per the applicable Ind AS- the same is as under:

a) Packaging Product Division: consisting of container and speciality glass business, PET bottles business and security
caps and closure business.

b) Investment Property: consisting of land & buildings owned by the Company and given on lease.

c) Other activities.

The activities of the company are primarily limited with in the Indian Territories having no variation in risk and returns.
Consequently, information in respect of geographical segment is not given.

A. Defined contribution plan

The Company operates defined contribution retirement benefit plans for all eligible employees. The assets
of the plans are held separately from those of the Company's in funds under the control of trustees of
Somany Provident Fund Institution (PF Trust). During the previous year, the PF Trust had surrendered the
recognition granted to it. Accordingly, the entire corpus in respect of all the active and inactive employees
had been transferred to the office of Regional Provident Fund Commissioner (RPFC) Kukatpally, Hyderabad.
Where employees leave the plans prior to full vesting of the contributions, the contributions payable by the
Company are reduced by the amount of forfeited contributions.

The Company's contribution to Provident Fund and Superannuation Fund aggregating to H 828.16 lakh (net
of amount capitalised and reimbursement received from government) (previous year H 520.97 lakh) has
been recognised in the Statement of Profit and Loss under the head Employee Benefits Expense.

B. Defined benefit plans
Gratuity

The Company operates a gratuity plan covering qualifying employees. The benefit payable is the greater of the
amount calculated as per the Payment of Gratuity Act, 1972 or the Company Scheme applicable to the employee.
The benefit vests upon completion of five years of continuous service and once vested it is payable to employees
on retirement or on termination of employment. In case of death while in service, the gratuity is payable irrespective
of vesting. The Company makes annual contribution to the group gratuity Scheme administered by the Birla Sun
Life Insurance Company Limited.

Note 50 - Ind AS 116 Leases

The company recorded the lease liability at the present value of the future lease payments discounted at the incremental
borrowing rate and the right of use asset.

Leases for which the Company is a lessor is classified as a finance or operating lease. Whenever the terms of the lease
transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All
other leases are classified as operating leases. For operating leases, rental income is recognized on a straight line basis
over the term of the relevant lease.

The following is the break-up of current and non-current lease liabilities:-

Note 60 - Assets held for sale

The Board of Directors of the Company in their meeting held on 15^th January 2022, had approved for sale/disposal of
one of the Company's faucet manufacturing plant, situated at Plot No. G-470-471, RIICO Industrial Area, Bhiwadi, in the
State of Rajasthan ("Bhiwadi Plant"), which had been shut down since the year 2014 and is presently not operational.
Accordingly, the same has been shown under "Non-current Assets held for sale" in accordance with IND AS 105 - "Non
current assets held for sale and discontinued operations".

Note 61 - Diminution of Investments

The Company acquired 804,000 equity shares of Andhra Pradesh Gas Power Corporation Limited (APGPCL) during the
fiscal years 1999-20 to 2003-04, at a total consideration of H 1,073.63 lakh, representing a 1.1% stake in APGPCL. This
investment entitled the company to purchase generated power at a concessional rate.

However, due to a rise in natural gas prices and the ageing of its plant, APGPCL ceased power generation. The Company
assessed that there is no realizable value of APGPCL's investments as at March 31, 2024.

Based on the assessment, the company had fully provided its investments in APGPCL through Other Comprehensive
Income to comply with Ind AS requirements.

Note 65

During the FY 2022-23, the Company had submitted Resolution Plan (the "Plan") for the acquisition of 100% stake
in Hindusthan National Glass and Industries Limited (the "Corporate Debtor") in the Corporate Insolvency Resolution
Process (the "CIRP") under the Insolvency and Bankruptcy Code 2016. The appointed Resolution Professional under
CIRP had issued a Letter of Intent dated 28^th October 2022 (the "LOI") declaring the Company as a successful resolution
applicant under CIRP with due authorization of the committee of creditors of the Corporate Debtor. The company had
given its acceptance of the LOI and issued underlying performance bank guarantees as per the requirement of the
LOI. Post this, the Hon'ble Competition Commission of India had approved the above said transaction vide its order
dated 15^th March 2023 as published on their website. The closure of the aforesaid transaction was subject to obtaining
necessary approvals from Hon'ble Supreme Court of India, Hon'ble NCLT Kolkata and other customary approvals,
fillings, and processes.

Further, on January 29, 2025 the Hon'ble Supreme Court (three-judges' bench) has pronounced its judgment in a batch
of matters titled "Independent Sugar Corporation Limited v. Girish Sriram Juneja & Anr.", Civil Appeal No.(s) 6071/2023
and connected matters, which inter alia pertained to the proposed acquisition of Hindusthan National Glass and
Industries Limited by the Company under the IBC ("Judgment"). In the aforesaid Judgment, by way of majority opinion,
the Hon'ble Supreme Court has held against the Company's resolution plan to acquire Hindusthan National Glass and
Industries Limited that had earlier been approved by the Committee of Creditors of Hindusthan National Glass and
Industries Limited.

Further, after consultation with legal advisors, the company has filed a review petition before the Hon'ble Supreme
Court on February 11, 2025, against the findings of the Judgment which was under consideration as on 31 March 2025.

Note 66

During the FY 2022-23, the company had decided to exercise the option permitted under section 115BAA of the Income-
tax Act, 1961. Accordingly, the provision for income tax and deferred tax balances had been recorded / re-measured
using the new tax rate, and the resultant impact had been recognized accordingly.

Note 67 - Dividend

The Board of Directors have recommended a dividend of 350% i.e. H 7/- (previous year H 6/-) on equity share of H 2/- each
for the year ended 31^st March 2025 subject to approval of shareholders in the ensuing Annual General Meeting.

Note 68

The Company has incorporated a wholly owned subsidiary under the name of "AGI Retail Private Limited" on 27^th August
2024, The Company has subscribed for 1,00,000 equity shares of H 10 each of AGI Retail Private Limited.

The Board of directors in their meeting held on 29^th July 2024 had approved the incorporation of a wholly owned
subsidiary under the name of "Sun Reach Pack (FZE)" in United Arab Emirates with an authorized share capital of AED
1,50,000 with the objective to promote exports and the same has been incorporated on 28^th October 2024. Capital
infusion and opening of bank accounts is under process as at 31 March 2025.

Note 69

As per the investment promotion policy of the Telangana State Government for mega projects, the Company is eligible
for different subsidies linked to its investments made over the years. Other Income for the year ended 31^st March 2025
includes H 2,103.76 lakh (previous year Nil) subsidy as received by the Company.

Note 70 - Audit Trail

The company has a widely used ERP as its accounting software for maintaining its books of accounts during the
year ended 31 March 2025, which has a feature of recording audit trail (edit logs) facility and same has been operated
throughout the year in the said application except (a) the audit trail has not been enabled at database level, (b) at
application level audit trail is not enabled for relevant financial tables and (c) privileged access to specific users to
make direct changes to audit trail settings. Further, the audit trail, to the extent maintained in the prior year, has been
preserved by the Company as per the statutory requirements for record retention.

Note 71 - Other Disclosures

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

(b) The Company does not have any benami property held in its name. No proceedings have been initiated on or are
pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988
(45 of 1988) and Rules made thereunder

(c) The Company have not traded or invested in crypto currency or virtual currency during the financial year

(d) There are no loans or advances in the nature of loans granted to Promoters, Directors, KMPs and their related
parties (as defined under Companies Act, 2013), either severally or jointly with any other person, that are: (a)
repayable on demand; or (b) without specifying any terms or period of repayment

(e) The Company has complied with the requirements of the number of layers prescribed under clause (87) of section
2 of the Companies Act, 2013 read with Companies (Restriction on number of Layers) Rules, 2017

(f) The Company has not been declared wilful defaulter by any bank or financial institution or other lender or
government or any government authority

(g) Utilisation of borrowed funds and share premium

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

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

(b) Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

(ii) 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:"

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

(b) Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

(h) There is no income surrendered or disclosed as income during the year in tax assessments under the Income Tax
Act, 1961 (such as search or survey), that has not been recorded in the books of account

Note 72

Gain on foreign exchange fluctuation amounting to H 327.57 lakh in previous year has been regrouped under Other
Income from Other Operating Revenue. The same is not having any impact on profit and loss account.

Note 73 - Social security code

The Code on Social Security, 2020 ('Code') relating to employee benefits during employment and post-employment
benefits received Indian Parliament's approval and Presidential assent in September 2020. The Code has been
published in the Gazette of India and subsequently, on November 13, 2020, draft rules were published and stakeholders'
suggestions were invited. However, the date on which the Code will come into effect has not been notified. The
Company will assess the impact of the Code when it comes into effect and will record any related impact in the period
the Code becomes effective.

Note 74 - Previous period figures have been regrouped /re-arranged wherever considered necessary to confirm to
the current year's classification.

As per our report of even date attached For and on behalf of the Board of Directors

For Lodha & CO LLP Rajesh Khosla Sandip Somany

Chartered Accountants Chief Executive Officer Chairman and Managing Director

Firm Registration No: 301051E/E300284 DIN: 00053597

Shyamal Kumar Ompal Om Prakash Pandey

Partner Company Secretary Chief Financial Officer

M. No: 509325 ACS No: A30926

Place: Gurugram Place: Gurugram

Date: 14 May 2025 Date: 14 May 2025