2.15 Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present
obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent

Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor
disclosed in the Financial Statements.

2.16 Financial instruments

Financial Assets

A. Initial recognition and measurement

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

B. Subsequent measurement

a. Financial assets carried at amortised cost (AC)

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

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

A financial asset is measured at FVTOCI 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.

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

A financial asset which is not classified in any of the above categories are measured at FVTPL.

C. Investment in subsidiaries

The Company has accounted for its investments in subsidiaries, associates and joint venture at cost.

D. Other Equity Investments

All other equity investments are measured at fair value, with value changes recognised in Statement of Profit
and Loss, except for those equity investments for which the Company has elected to present the value changes
in ‘Other Comprehensive Income’.

E. Impairment of financial assets

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

Expected credit losses are measured through a loss allowance at an amount equal to:

a. The 12-months expected credit losses (expected credit losses that result from those default events on the
financial instrument that are possible within 12 months after the reporting date); or

b. Full lifetime expected credit losses (expected credit losses that result from all possible default events over
the life of the financial instrument)

For trade receivables Company applies ‘simplified approach’ which requires expected lifetime losses to be
recognised from initial recognition of the receivables. The Company uses historical default rates to determine

impairment loss on the portfolio of trade receivables. At every reporting date these historical default rates are
reviewed and changes in the forward looking estimates are analysed.

For other assets, the Company uses 12 month ECL to provide for impairment loss where there is no significant
increase in credit risk. If there is significant increase in credit risk full lifetime ECL is used.

Financial liabilities

A. Initial recognition and measurement

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

B. Subsequent measurement

Financial liabilities are 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.

2.17 Critical accounting judgments and key sources of estimation uncertainty

The preparation of the Company’s Financial Statements requires management to make judgement, estimates
and assumptions that affect the reported amount of revenue, expenses, assets and liabilities and the
accompanying disclosures. 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.

A. Decommissioning Liabilities

The liability for decommissioning costs are recognized when the Company has obligation to perform site
restoration activity. The recognition and measurement of decommissioning provisions involves the use of
estimates and assumptions. These include; the timing of abandonment of well and related facilities which would
depend upon the ultimate life of the field, expected utilization of assets by other fields, the scope of
abandonment activity and pre-tax rate applied for discounting.

B. Recoverability of trade receivable

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

C. Provisions

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

D. Impairment of non-financial assets

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

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

E. Impairment of financial assets

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

Conversion of Warrants into Equity Shares

During financial year, the Company has converted 25,00,000 share warrant into equity shares of face value Rs.
1/- each to certain parties under preferential allotment as approved by the shareholders in accordance with
Chapter V of the Securities and Exchange Board of India (issue of Capital and Disclosure Requirements)
Regulations, 2018. The Equity Shares were issued @ Rs. 169/- per Equity Share (including a share premium
of Rs. 168/- per share).

b. Terms/rights attached to equity shares

The company has only one class of equity shares having a per value of ? 1 per share (previous year ? 1 per
share). Each Equity shares is entitled to one vote per share. In the event of liquidation of the company, the
holders of equity shares will be receive remaining assets of the company, after distribution of all preferential
amount. The distribution will be in proportion to the number of equity shares held by the shareholders.

Money received agianst Share Warrants represents amounts received towards warrants which entitles the
warrant holders the option to apply for and be allotted equivalent number of equity shares of the face value of
Rs. 1/ each.

During the financial year, the Company has converted 25,00,000 share warrants into equity shares at a price of
Rs. 169 each entitling them for subscription of equivalent number of Equity Shares of Rs. 1/- each (including
premium of Rs. 168/- each Share) under Regulation 28(1) of the SEBI (LODR) Regulations, 2015. The holder
of the share warrants has exercised the option to subscribe to equity shares before the expiry of 18 months from

*Term Loan are secured by way of Mortgage of Solar Plant, Mortgage of Director's Residental flats and
personal gaurantee from managing director and director.

**Vehicle Loans are Secured by hypothecation of vehicles acquired under said loans.

*** Working Capital term loan under ECGLS scheme from Axis Bank and ICICI Bank.

# Working Capital Loan from Axis Bank and ICICI Bank are Secured by hypothecation of present and future
Inventories, Book debts and other current assets of the Company. The Working Capital loans are further
guaranteed by Directors of the Company, including Managing Director of the Company. Working Capital loans
are further secured by first charge on the Fixed Assets of the Company.

Note 31 - Gratuity

The company operates one-defined plans, viz., gratuity Under the gratuity plan, every employee who has completed atleast five years
of service gets a gratuity on departure @ 15 days of salary for each year of service subject to a maximum ofRs 20.00 Lacs.

The Company has charged/reversed the gratuity provision of ? 11.04 Lacs in the profit and loss accounts in the
year ended March 31, 2026 (previous year, ? 19.62 Lacs). The Projected obligation towards the gratuity at the
end of the year ? 75.55 Lacs (previous year ? 75.44 Lacs).

Note 32 - Segment information

i) Primary (Business) Segment

In accordance with the requirements of Accounting Standard 17 “Segment Reporting” issued by the ICAI, the
Company’s business consist of one reportable segment i.e. Seat & Berth, Recorn Densified Thermal Bonded
Blocks, Recorn Wadding, Comperg, Foldable Mattress. Hence no separate disclosures pertaining to attributable
Revenues, Profits, Assets, Liabilities, Capital Employed are given.

ii) Secondary (Geographical) Segment

Secondary segment reporting is performed on the basis of geographical location of the Customers The operation
of the Company comprises domestic sales and export sales. The export sale consideration is not materialized
hence no separate disclosure pertaining to attributable Revenues, Profits, Assets, Liabilities, Capital Employed
are given.

Note 35 - Corporate Social Responsibilty

As per section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend
2% of its average net profit for the immediately preceding three financial years on corporate social resposibility
(CSR) activities. The areas for CSR activities are eradicating poverty , hunger and malnutrition, promoting
healthcare and improvement in education. A CSR committee has been by the company as per the Act. The

Note 36 Financial Derivative instrument

Foreign currency exposures are not hedged by derivative instrument as on the March 31, 2026 is Euro 2362.50 [Previous Year is Nil).
The unhedged exposure are naturally hedged by foreign currency earings and earnings linked to foreign currency.

The management has assessed that the carrying values of the Financial Assets and Liabilities at amortised cost
approximate their fair value largely due to their short-term maturities of these instruments.

Note 37A - Financial Risk Management Objectives And Policies

The Company's principal financial assets include trade & other receivables, and cash & cash equivalents that
derives directly from its operations. The Company's principal financial liabilities comprise trade & other
payables and short term borrowings. The main purpose of majority of these financial liabilities is to manage
working capital of the Company.

The Company is exposed to credit risk, market risk and liquidity risk. The Company's senior management
oversees the management of these risks. The Company's financial risk activities are governed by appropriate
policies and procedures and financial risks are identified, measured and managed in accordance with the
Company's policies and risk objectives. The below note explains the sources of risk which the Company is
exposed to and how the entity manage the risk :

A) Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer
contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities
(primarily trade receivables) and from its investing activities, primarily cash & cash equivalents.

i) Trade Receivables

Customer credit risk is managed in accordance with the Company's established policy, procedures and controls
relating to customer credit risk management. Credit quality of a customer is assessed based on individual credit
limits are defined in accordance with this assessment. Outstanding customer receivables are regularly monitored
through credit lock and release effectively manage the exposure.

An impairment analysis is performed at each reporting date on an individual basis for major customers In
addition,a large number of minor receivables are grouped into homogenous groups and assessed for impairment
collectively. The calculation is based on historical data. The Company does not hold any collateral as security.
The Company evaluates the concentration of risk with respect to trade receivables as low, as most of its external
customers are established players in their industry.

The Company determines the allowance for credit losses based on historical loss experience adjusted to reflect
current and estimated future economic conditions. The Company considered current and anticipated future
economic conditions relating to industries the Company deals with and the countries where it operates. In
calculating expected credit loss, the Company has also considered related credit information for its customer,
that's available in public domain to estimate the probability of default in future.

ii) Cash and Cash Equivalents and Other Financial Assets

Credit risk from balances with banks is managed by the Board of Directors in accordance with the Company's
policy. Investment of surplus funds are made for short-term in deposit with banks. Investments and Bank
deposits are reviewed by the Board of Directors on a quarterly basis. Credit risk arising from short term liquid

fund, cash and cash equivalents and other balances with banks is limited and no collaterals are held against
these because the counterparties are banks.

Other financial assets mainly include security deposits & other receivables. There are no indications that
defaults in payment obligations would occur in respect of these financial assets.

B) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate
because of changes in market prices. Market risk comprises three types of risk: such as commodity risk,
foreign currency risk and equity price risk. Financial instruments affected by market risk include FVTPL
investments, trade payables, trade receivables, borrowings, other receivables etc.

i) Commodity Risk

Commodity risk for the Company is mainly related to availability of raw materials at right price which drives
the prices of Finished Goods. Most of these input materials are procured from approved vendors and subject to
price negotiations. In order to mitigate the risk associated with raw material and components prices, the
Company manages its procurement through productivity improvements, expanding vendor base and constant
pricing negotiation with vendor The Company renegotiates the prices with its customers in case there is more
than normal deviation in the prices of its major raw materials. Additionally, the processes and policies related
to such risks are reviewed and controlled by senior management team.

ii) Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of
changes in foreign exchange rates. The risk of fluctuations in foreign currency exchange rates on its financial
liabilities including trade and other payables etc. Hence, variation in the Foreign exchange rate would have
reasonable impact on the profit or loss / equity of the Company. Net foreign currency exposure also reviewed
by the Board of Directors on a quarterly basis.

Foreign Currency Sensitivity Analysis

The Company is exposed to the currencies USD & EURO on account of outstanding receivables ( ) and
payables (-). The Company's net exposure to foreign currency risk at the end of the reporting period expressed
in respective currencies given below;

Foreign currency exposures are not hedged by derivative instrument as on the March 31, 2026 is Euro 2362.50
[Previous Year is Nil).

iii) Equity Price Risks

Equity price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in equity prices, whether those changes are caused by factors specific to the individual
financial instrument or its issuer, or by factors affecting all similar financial instrument straded in the
market.

The Company only invests in the equity shares of the subsidiary as part of the Company’s overall business
strategy and policy. The Company manages the equity price risk through placing limits on individual and total
equity investment in the subsidiary. The Company’s investment in quoted equity instruments (other than
subsidiaries) is Nil.

C) Liquidity Risk

Liquidity risk is defined as a risk that the Company will not be able to meet its obligations on time or at a
reasonable price. An effective liquidity risk management takes into consideration in maintaining optimum level
of cash and cash equivalents and the availability of funding through an credit facilities at a reasonable cost to
meet the obligation when due. Additionally, the processes and policies related to such risks are reviewed and
controlled by senior management team. Management continuously reviews the actual cash flows and forecasts
the expected cash flows to monitor the liquidity position. All the current financial liabilities of the Company
are due to be paid with in twelve months from the date from the Balance sheet date. All non-current financial
liabilities are due to be paid in more than twelve months from the Balance sheet date. However the interest
component of all the non-current financial liabilities if any will be payable as and when due, which may be
with in twelve months from the date of Balance sheet date.

Note 39 - Other Statutory Information

a. The Company does not have any Benami property, where any proceeding has been initiated or pending
against the Group for holding any Benami property.

b. The Company does not have any transactions with struck off companies.

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

d. 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 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.

e. The Company has not been declared wilful defaulter by any bank orfinancial institution or government or any government authority.

f. The Company has complied with the number of layers prescribed under the Companies Act, 2013.

Note 40 -Sundry Debtors, Sundry Creditors, loans & advances and outstanding balance are
subject to confirmation and reconciliation.

Note 41- Previous Year Figures have been reclassified/recast to conform to this year's
classification.