3.9 Provisions, Contingent Liabilities and Contingent
Assets

(i) Provisions

The Company recognizes a provision when it
has a present legal or constructive obligation
as a result of past events, it is likely that an
outflow of resources will be required to settle
the obligation; and the amount has been

reasonably estimated. Unwinding of the
discount is recognised in the Statement of
Profit and Loss as a finance cost.

(ii) Contingent Liabilities

Contingent liability is a possible obligation
arising from past events and whose existence
will be confirmed only by the occurrence or
non-occurrence of one or more uncertain
future events not wholly within the control of
the company or a present obligation that arises
from past events but is not recognized because
it is not probable that an outflow of resources
embodying economic benefits will be required
to settle the obligation or the amount of the
obligation cannot be measured with sufficient
reliability.

(iii) Contingent Assets

A contingent asset is not recognised unless
it becomes virtually certain that an inflow
of economic benefit will arise. When an
inflow of economic benefits is probable,
contingent assets are disclosed in the financial
statements. Provisions, contingent liabilities
and contingent assets are reviewed at each
balance sheet date.

(iv) Onerous Contracts:

A provision for onerous contracts is measured
at the present value of the lower expected
costs of terminating the contract and the
expected cost of continuing with the contract.
Before a provision is established, the Company
recognizes impairment on the assets with the
contract.

3.10 Taxes:

The tax expenses comprise of current tax and
deferred income tax charge or credit. Tax is
recognised in Statement of Profit and Loss, except
to the extent that it relates to items recognised
in the Other Comprehensive Income or in Equity.
In which case, the tax is also recognised in Other
Comprehensive Income or Equity.

(i) Current Tax:

Tax on income for the current period is
determined on the basis of estimated

taxable income and tax credits computed in
accordance with the provisions of the relevant
tax laws and based on the expected outcome
of assessments/ appeals. The current income
tax charge is calculated on the basis of the tax
laws enacted or substantively enacted at the
end of the reporting period.

Management periodically evaluates positions
taken in the tax returns with respect to
situations in which applicable tax regulations
are subject to interpretation and establishes
provisions, where appropriate.

Current tax assets and current tax liabilities are
offset when there is a legally enforceable right
to set-off the recognised amounts and there is
an intention to settle the asset and the liability
on a net basis.

(ii) Deferred Tax:

Deferred tax is recognised on temporary
differences between the carrying amounts of
assets and liabilities in the company's financial
statements and the corresponding tax bases
used in computation of taxable profit and
quantified using the tax rates and laws enacted
or substantively enacted as on the Balance
Sheet date.

Deferred tax liabilities are recognised for all
taxable temporary differences at the reporting
date between the tax base of assets and
liabilities and their carrying amounts for
financial reporting purposes. Deferred tax
assets are recognised for all taxable temporary
differences to the extent that is probable that
taxable profits will be available against which
those deductible temporary differences can be
utilised.

The carrying amount of deferred tax assets is
reviewed at the end of each reporting period
and reduced to the extent that it is no longer
probable that sufficient taxable profits will be
available to allow all or part of the asset to be
recovered.

Unrecognized deferred tax assets are
reassessed at each reporting and are

recognized to the extent that it has become
probable that future taxable profits will be
available against which the deferred tax assets
to be recovered.

The measurement of deferred tax liabilities
and assets reflects the tax consequences
that would follow from the manner in which
the company expects, at the end of reporting
period, to recover or settle the carrying amount
of its assets and liabilities.

Transaction or event which is recognised
outside profit or loss, either in other
comprehensive income or in equity, is recorded
in other comprehensive income or in equity
along with the tax as applicable.

Deferred tax assets and deferred tax liabilities
are offset when there is a legally enforceable
right to set-off the recognised amounts and
there is an intention to settle the asset and the
liability on a net basis.

3.11 Revenue Recognition:

(i) Revenue from Operations:

Ind AS 115 applies, with limited exceptions,
to all revenue arising from contracts with
its customers. Ind AS 115 establishes a
fivestep model to account for revenue arising
from contracts with customers and requires
that revenue be recognized at an amount
that reflects the consideration to which an
entity expects to be entitled in exchange for
transferring goods or services to a customer.

Ind AS 115 requires entities to exercise
judgment, taking into consideration all of
the relevant facts and circumstances when
applying each step of the model to contracts
with their customers. It also specifies the
accounting for the incremental costs of
obtaining a contract and the costs directly
related to fulfilling a contract.

(ii) Sale of Goods:

The Company recognises revenue from sale
of goods measured upon satisfaction of
performance obligation which is at a point in
time when control of the goods is transferred
to the customer, generally on delivery of the

goods. Depending on the terms of the contract,
which differs from contract to contract, the
goods are sold on a reasonable credit term.
Revenue is measured based on the transaction
price, which is the consideration, adjusted for
volume discounts, rebates, scheme allowances,
price concessions, incentives, and returns,
if any, as specified in the contracts with the
customers. Revenue excludes taxes collected
from customers on behalf of the government.

(iii) Sale of Services:

Revenue from services is recognised when the
performance obligation is met and the right to
receive income is established.

(iv) Interest Income:

For all debt instruments measured either at
amortised cost or at fair value through other
comprehensive income, interest income is
recorded using the effective interest rate
(EIR). EIR is the rate that exactly discounts the
estimated future cash payments or receipts
over the expected life of the financial instrument
or a shorter period, where appropriate, to the
gross carrying amount of the financial asset
or to the amortised cost of a financial liability.
When calculating the effective interest rate, the
Company estimates the expected cash flows
by considering all the contractual terms of the
financial instrument (for example prepayment,
extension and similar options) but does not
consider the expected credit losses. Interest
income is included in other income in the
statement of profit and loss.

(v) Dividend Income:

Dividend income is recognized when the
Company's right to receive the payment
is established, which is generally when
shareholders approve the dividend.

(vi) Export Incentives:

Eligible export incentives are recognised in the
year in which the conditions precedent are met
and there is no significant uncertainty about
the collectability.

(vii) Other Income:

Revenue with respect to Other Operating
Income and Other Income including insurance

and other claims are recognised when a
reasonable certainty as to its realisation exists.

3.12 Leases:

The Company evaluates each contract or
arrangement, whether it qualifies as lease as defined
under Ind AS 116.

(i) As a Lessee:

The Company assesses, whether the contract
is, or contains, a lease, at its inception. A
contract is, or contains, a lease if the contract
conveys the right to -

(a) control the use of an identified asset,

(b) obtain substantially all the economic
benefits from use of the identified asset,
and

(c) direct the use of the identified asset

The Company determines the lease term as
the non-cancellable period of a lease, together
with periods covered by an option to extend
the lease, where the Company is reasonably
certain to exercise that option.

The Company at the commencement of the
lease contract recognizes a Right-of-Use
(RoU) asset at cost and corresponding lease
liability, except for leases with term of less
than twelve months (short term leases) and
low-value assets. For these short term and
low value leases, the Company recognizes the
lease payments as an operating expense on a
straight-line basis over the lease term.

The cost of the right-of-use asset comprises
the amount of the initial measurement of the
lease liability, any lease payments made at or
before the inception date of the lease, plus any
initial direct costs incurred and an estimate of
costs to dismantle and remove the underlying
asset or to restore the underlying asset or
the site on which it is located, less any lease
incentives received.

The Right-of-Use asset is subsequently
depreciated using the straight-line method
from the commencement date to the earlier
of the end of the useful life of the Right-of-
Use asset or the end of the lease term. The

estimated useful lives of Right-of-Use assets
are determined on the same basis as those
of property, plant and equipment. In addition,
the Right-of-Use asset is periodically reduced
by impairment losses, if any, and adjusted for
certain remeasurements of the lease liability.

For lease liabilities at the commencement of
the lease, the Company measures the lease
liability at the present value of the lease
payments that are not paid at that date. The
lease payments are discounted using the
interest rate implicit in the lease, if that rate can
be readily determined, if that rate is not readily
determined, the lease payments are discounted
using the incremental borrowing rate that the
Company would have to pay to borrow funds,
including the consideration of factors such as
the nature of the asset and location, collateral,
market terms and conditions, as applicable
in a similar economic environment. After the
commencement date, the amount of lease
liabilities is increased to reflect the accretion
of interest and reduced for the lease payments
made.

Lease payments included in the measurement
of the lease liability comprises fixed payments,
including amounts expected to be payable
under a residual value guarantee and the
exercise price under a purchase option that
the Company is reasonably certain to exercise,
lease payments in an optional renewal period if
the Company is reasonably certain to exercise
an extension option. The lease liability is
subsequently measured at amortised cost
using the effective interest method.

Each lease rental paid is allocated between the
liability and the interest cost, so as to obtain
a constant periodic rate of interest on the
outstanding liability for each period. Finance
charges are recognised as finance costs in the
statement of profit and loss.

(ii) Short-term leases and leases of low-value
assets

The Company applies the short-term lease
recognition exemption to its short-term leases
(i.e., those leases that have a lease term of
12 months or less from the commencement
date). It also applies the lease of low-value
assets recognition exemption to leases that
are considered of low value (range different
for different class of assets). Lease payments
on short-term leases and leases of low-
value assets are recognised as expense on a
straightline basis over the lease term.

3.13 Borrowing Costs:

Borrowing costs that are directly attributable
to the acquisition or construction of qualifying
assets are capitalised as part of the cost of such
assets. A qualifying asset is one that necessarily
takes substantial period of time to get ready for its
intended use. All other borrowing costs are charged
to the Statement of Profit and Loss for the period
for which they are incurred. Borrowing costs consist
of interest and other costs 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.

I n determining the amount of borrowing costs
eligible for capitalization, any income earned on
the temporary investment of specific borrowings
pending their expenditure on qualifying assets
is deducted from the borrowing costs eligible for
capitalisation.

3.14 Foreign Currency T ransactions:

Foreign currency transactions are recorded on initial
recognition in the functional currency, using the
exchange rate at the date of the transaction. At each
Balance Sheet date, foreign currency monetary items
are reported using the closing rate. Non-monetary
items that are measured in terms of historical cost in
a foreign currency are translated using the exchange
rate as at the date of initial transactions. Exchange
differences that arise on settlement of monetary
items or on reporting of monetary items at each
Balance Sheet date are recognised in profit or loss
in the period in which they arise except for exchange
differences on foreign currency borrowings relating
to assets under construction for future productive
use, which are included in the cost of those assets
when they are regarded as an adjustment to interest
costs on those foreign currency borrowings.

3.15 Earnings Per Share:

Basic earnings per share is calculated by dividing
the net profit or loss for the year attributable to

equity shareholders by the weighted average
number of equity shares outstanding during the
year. The weighted average number of equity shares
outstanding during the period and for all periods
presented is adjusted for events such as bonus
issue; bonus element in a rights issue to existing
shareholders; 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 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.

3.16 Exceptional items:

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

3.17 Financial Instruments:

A financial instrument is any contract that gives
rise to a financial asset of one entity and a financial
liability or equity to another entity. The Company
determines the classification of its financial assets
and liabilities at initial recognition.

(a) Initial Recognition:

Financial assets and/or financial liabilities are
recognised when the Company becomes party
to a contract embodying the related financial
instruments. All financial assets, financial
liabilities and financial guarantee contracts
are initially measured at transaction values
and where such values are different from the
transaction values, at fair values. Transaction
costs that are attributable to the acquisition or
issue of financial assets and financial liabilities
that are not at fair value through profit or loss
are added to or deducted from as the case may
be, from the fair value of on initial recognition.

(b) Classification and Subsequent Measurement
of Financial Assets:

The Company classifies financial assets,
subsequently at amortised cost, Fair Value
through Other Comprehensive Income
("FVTOCI") or Fair Value through Profit or Loss
("FVTPL") on the basis of following:

• The entity's business model for managing
the financial assets and

• The contractual cash flow characteristics
of the financial asset.

(i) Financial Assets measured at Amortised
Cost:

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 represent solely
payments of principal and interest on the
principal amount outstanding.

(ii) Financial Assets measured 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
represents solely payments of principal
and interest on the principal amount
outstanding.

(iii) Financial Assets measured at Fair Value
Through Profit or Loss (FVTPL):

FVTPL is a residual category for financial
assets. Any financial asset, which does
not meet the criteria for categorisation
as at amortised cost or as FVTOCI, is
classified as at FVTPL.

(c) Classification and Subsequent Measurement
of Financial Liabilities:

(i) Financial liabilities measured at Fair Value
Through Profit or Loss (FVTPL):

Financial liabilities are classified as
FVTPL when the financial liability is held
for trading or is a derivative (except for
effective hedge) or are designated upon
initial recognition as FVTPL. Gains or
Losses, including any interest expense on
liabilities held for trading are recognised
in the Statement of Profit and Loss.

(ii) Other Financial liabilities:

Other financial liabilities (including loans
and borrowings, bank overdraft and trade
and other payables) are subsequently
measured at amortised cost using the
effective interest method.

The effective interest rate is the rate that
exactly discounts estimated future cash
payments (including all fees and amounts
paid or received that form an integral part
of the effective interest rate, transaction
costs and other premiums or discounts)
through the expected life of the financial
liability, or (where appropriate) a shorter
period, to the amortised cost on initial
recognition.

Interest expense (based on the effective
interest method), foreign exchange
gains and losses, and any gain or loss
on derecognition is recognised in the
Statement of Profit and Loss.

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.

(d) Debt and Equity Instruments:

Debt and equity instruments issued by the
Company are classified as either financial
liabilities or as equity in accordance with the
substance of the contractual arrangements
and the definitions of a financial liability and
an equity instrument.

An equity instrument is any contract that
evidences a residual interest in the assets of
an entity after deducting all of its liabilities.
Equity instruments issued by a Company are

recognised at the proceeds received, net of
direct issue costs.

(e) Equity Investments

All equity investments in the scope of Ind
AS 109 are measured at fair value. Equity
instruments which are held for trading are
classified as at FVTPL. For all other equity
instruments, the company may make an
irrevocable election to present in other
comprehensive income subsequent changes
in the fair value. The company makes such
election on an instrument-by-instrument basis.
The classification is made on initial recognition
and is irrevocable. If the company decides to
classify an equity instrument as at FVTOCI,
then all fair value changes on the instrument,
excluding dividends, are recognized in the OCI.
There is no recycling of the amounts from OCI
to statement of profit and loss, even on sale
of investment. However, the company may
transfer the cumulative gain or loss within
equity. Equity instruments included within the
FVTPL category are measured at fair value
with all changes recognized in the statement
of profit and loss.

(f) Investments in subsidiaries:

Investments in subsidiaries are carried at cost
less accumulated impairment losses, if any.
Where an indication of impairment exists, the
carrying amount of the investment is assessed
and written down immediately to its recoverable
amount. On disposal of investments in
subsidiaries, the difference between net
disposal proceeds and the carrying amounts
are recognised in the statement of profit
and loss.

(g) De-recognition of Financial Instruments:

The Company derecognises a Financial Asset
when the contractual rights to the cash flows
from the Financial Asset expire or it transfers
the Financial Asset and the transfer qualifies
for de-recognition under Ind AS 109. In cases
where Company has neither transferred nor
retained substantially all of the risks and

rewards of the financial asset, but retains
control of the financial asset, the Company
continues to recognize such financial asset
to the extent of its continuing involvement in
the financial asset. In that case, the Company
also recognizes an associated liability. The
financial asset and the associated liability are
measured on a basis that reflects the rights
and obligations that the Company has retained.

A Financial liability (or a part of a financial
liability) is derecognised from the Company's
Balance Sheet when the obligation specified
in the contract is discharged or cancelled or
expires. When an existing financial liability is
replaced by another from the same lender on
substantially different terms, or the terms of
an existing liability are substantially modified,
such an exchange or modification is treated as
the derecognition of the original liability and
the recognition of a new liability.

The difference between the carrying amount
of the financial liability de-recognised and the
consideration paid and payable is recognised
in the Statement of Profit and Loss.

(h) Impairment of Financial Assets:

The Company assesses at each date of
balance sheet whether a financial asset
or a group of financial assets is impaired.
Ind AS 109 requires expected credit losses
to be measured through a loss allowance.
The Company recognises lifetime expected
losses for all contract assets and / or all trade
receivables that do not constitute a financing
transaction. In determining the allowance
for expected credit losses, 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 is adjusted for
forward looking information. The expected
credit loss allowance is based on the ageing
of the receivables that are due and allowance
rates used in the provision matrix. For all other
financial assets, expected credit losses are

measured at an amount equal to the 12-months
expected credit losses or at an amount equal
to the life time expected credit losses if the
credit risk on the financial asset has increased
significantly since initial recognition.

(i) Offsetting of Financial Instruments:

Financial assets and financial liabilities are
offset and presented on net basis in the balance
sheet when there is a legally enforceable right
to set-off the recognised amounts and it is
intended to either settle them on net basis
or to realise the asset and settle the liability
simultaneously.

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 and available quoted market prices,
where applicable. All methods of assessing fair
value result in general approximation of value,
and such value may never actually be realized.

Financial instruments by category are
separately disclosed indicating carrying value
and fair value of financial assets and liabilities.
For financial assets and liabilities maturing
within one year from the Balance Sheet date
and which are not carried at fair value, the
carrying amounts approximate fair value due
to the short maturity of these instruments.

(j) Cash Flow hedges

The Company defines the risk management
objective and strategy for undertaking the
hedge. The Company also defines the economic
relationship between the hedged item and the
hedging instrument, including whether the
changes in cash flows of the hedged item and
hedging instrument are expected to offset
each other.

The company is exposed to foreign exchange
risk arising from foreign currency transactions,

primarily with respect to USD. Foreign
exchange risk arises from future commercial
transactions and recognised assets and
liabilities denominated in a currency that is not
the company's functional currency (INR).

The risk is measured through a forecast of
highly probable foreign currency cash flows.
The objective of the hedges is to minimise
the volatility of the INR cash flows of highly
probable forecast transactions. The company
risk management policy is to hedge forecasted
foreign currency net sales for the subsequent
12 to 36 months. As per the risk management
policy, appropriate foreign currency hedges are
executed or undertaken to hedge forecasted
net sales.

When a derivative is designated as a cash
flow hedging instrument, the effective portion
of changes in the fair value of the derivative
is recognised in OCI and accumulated in other
equity. If a hedge no longer meets the criteria
for hedge accounting or the hedging instrument
is sold, expires, is terminated or is exercised,
then hedge accounting is discontinued
prospectively. When hedge accounting for cash
flow hedges is discontinued, the amount that
has been accumulated in other equity remains
there until it is reclassified to profit or loss
in the same period or periods as the hedged
expected future cash flows affect profit or
loss. If the hedged future cash flows are no
longer expected to occur, then the amounts
that have been accumulated in other equity are
immediately classified as a statement of profit
and loss.

(k) RESEARCH AND DEVELOPMENT

Research costs are expensed as incurred.
Development expenditures on an individual
project are recognised as an intangible asset
when the Company can demonstrate:

• development costs can be measured
reliably;

^• the product or process is technically and
commercially feasible;

• future economic benefits are probable;
and

• the company intends to, and has sufficient
resources to complete development and
to use or sell the asset.

Following initial recognition of the development
expenditure as an asset, the asset is carried at
cost less any accumulated amortization and

Nature and Purpose of Reserves
Security Premium:

Securities premium is used to record the premium on issue of shares. The reserve can be utilised only for limited purposes
such as issuance of bonus shares in accordance with the provisions of the Companies Act, 2013.

Capital Redemption Reserve :

This reserve comprises of amount on Equity share cancellation on account of Scheme of arrangement on Demerger. This
reserve can be utilised in accordance with the provision of section 69 of the Companies Act, 2013

General Reserve :

Under the erstwhile Companies Act 1956, general reserve was created through an annual transfer of net income at a
specified percentage in accordance with applicable regulations adjusted by utilisation of reserve in accordance with
companies act in earlier years before demerger. The requirement to mandatorily transfer a specified percentage of the net
profit to general reserve before declaration of dividend has been withdrawn. However, the amount previously transferred to
the general reserve can be utilised only in accordance with the specific requirements of Companies Act, 2013.

Retained Earning :

Retained earning are the profits that the Company has earned till date, less any transfers to general reserve, any transfers
from or to other comprehensive income, dividends or other distributions paid to shareholders.

Performance Stock Option Plan :

The share options outstanding account is used to record the fair value of equity-settled, share-based payment transactions
with employees. The amounts recorded in share options outstanding account are transferred to securities premium, upon
exercise of stock options, and transferred to general reserve on account of stock options not exercised by employees.

Equity instruments through Other Comprehensive Income :

Other comprehensive income includes unrealized gains and losses that are not recognized in the income statement,
comprising fair value changes in debt investments classified as fair value through other comprehensive income (FVTOCI),
fair value changes in equity investments designated as FVTOCI, and mark-to-market adjustments on forward contracts
used for hedging purposes. These unrealized gains and losses are accumulated within the other comprehensive income
reserve within equity, and the Company transfers amounts from this reserve to retained earnings for equity investments
when derecognized, and to the statement of profit or loss for debt instruments upon maturity or redemption and for forward
contracts when hedge accounting ceases to apply.

Footnotes:

(a) Disaggregate revenue information

Refer Note 36 for disaggregated revenue information. The management determines that the segment information
reported is sufficient to meet the disclosure objective with respect to disaggregation of revenue under Ind AS 115
"Revenue from contracts with customers".

(b) In case of Domestic Sales, payment terms range from 60 days to 120 days based on geography and customers. In case
of Export Sales these are either against documents at sight, documents against acceptance or letters of credit - 60
days to 120 days. There is no significant financing component in any transaction with the customers.

(c) The Company does not provide performance warranty for products, therefore there is no liability towards performance
warranty.

(d) The Company does not have any remaining performance obligation as contracts entered for sale of goods are for a
shorter duration.

A Post-employment benefits

(i) Provident Fund (defined contribution plan)

The company has certain defined contribution plans. Contributions are made to provident fund for employees at the rate
of 12% of basic salary as per regulations. The contributions are made to registered provident fund administered by the
government. The obligation of the company is limited to the amount contributed and it has no further contractual nor
any constructive obligation. The expense recognized during the period towards defined contribution plan are ' 695.29
lakhs (PY ' 591.46 lakhs).

(ii) Retirement Gratuity (defined benefit plans)

The company provides for gratuity for employees as per the Payment of Gratuity Act, 1972. Employees who are in
continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/
termination is the employees' last drawn basic salary per month computed proportionately for 15 days salary multiplied
by number of years of service. The gratuity plan is a funded plan and the company makes contributions to recognised
funds in India. The company maintains a target level of funding to be maintained over a period of time based on
estimations of expected gratuity payments.

"Defined benefit plans typically expose the Company to actuarial risks such as: Investment Risk, Interest Risk, Longevity
Risk and Salary Risk.

(i) Investment risk:

The present value of the defined benefit plan liability is calculated using a discount rate determined by reference
to government bond yields. If the return on plan asset is below this rate, it will create a plan deficit.

(ii) Interest risk:

A decrease in the bond interest rate will increase the plan liability. However, this will be partially offset by an
increase in the value of plan's debt investments.

(iii) Salary risk:

The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan
participants. As such, an increase in salary of the plan participants will increase the plan's liability.

(iv) Longevity risk:

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

Notes:

(i) The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions
occurring at the end of the reporting period, while holding all other assumptions constant.

(ii) The sensitivity analysis presented above may not be representative of the actual change in the projected benefit
obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the
assumptions may be correlated.

(iii) Furthermore, in presenting the above sensitivity analysis, the present value of the projected benefit obligation has
been calculated using the projected unit credit method at the end of the reporting period, which is the same method
as applied in calculating the projected benefit obligation as recognised in the balance sheet.

(iv) There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

(v) The Company is expected to contribute ' 256.29 lakhs to defined benefit plan obligations funds for the year ended
March 31,2026.

(vi) Expected return on assets is determined by multiplying the opening fair value of the plan assets by the expected rate
of return determined at the start of the annual reporting period, taking account of expected contributions & expected
settlements during the reporting period.

(vii) The Weighted Average Duration of the Plan works out to 9 years.

(viii) Asset Liability matching strategy:

The money contributed by the Company to the Gratuity fund to finance the liabilities of the plan has to be invested.
The trustees of the plan have outsourced the investment management of the fund to an insurance Company. The
insurance Company in turn manages these funds as per the mandate provided to them by the trustees and the asset
allocation which is within the permissible limits prescribed in the insurance regulations.

Due to the restrictions in the type of investments that can be held by the fund, it is not possible to explicitly follow an
asset liability matching strategy. There is no compulsion on the part of the Company to fully prefund the liability of the
Plan.

Fair value hierarchy

Level 1 : Hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments
and mutual funds that have quoted price. The mutual funds are valued using the closing NAV.

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

Level 3 : If one or more of the significant inputs is not based on observable market data, the instrument is included in level
3. This is the case for unlisted equity securities, listed redeemable preference shares for which sufficient observable market
data was not available during the year, etc. included in level 3.

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

40 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company's Board of Directors has overall responsibility for the establishment and oversight of the Company's Risk
Management framework. The Board has established the Risk Management Committee, which is responsible for developing
and monitoring the Company's Risk Management policies. The Committee reports regularly to the Board of Directors on its
activities.

The Company's financial assets comprise mainly of investments, cash and cash equivalents, other balances with banks,
trade receivables and other receivables and financial liabilities comprise mainly of borrowings, trade payables and other
payables

The Company's activities expose it to market risk, liquidity risk and credit risk. The Company's overall risk management
focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial
performance of the Company. The Company uses derivative financial instruments, such as cross currency swaps and
interest rate swaps to hedge foreign currency risk and interest rate risk exposure . Derivatives are used exclusively for
hedging purposes and not as trading or speculative instruments.

A 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 risks: interest rate risk, currency risk and other price
risk. Financial instruments affected by market risk include borrowings, investments, trade payables, trade receivables
and derivative financial instruments.

(i) Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of the financial instruments will fluctuate due
to changes in market interest rates. Company's interest rate risk arises from borrowings.

The following table demonstrates the sensitivity on the Company's profit before tax, to a reasonably possible
change in interest rates of variable rate borrowings on that portion of loans and borrowings affected, with all
other variables held constant:

(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 Company transacts in several currencies and consequently the Company
is exposed to foreign exchange risk through its sales outside India, and purchases from overseas suppliers in
various foreign currencies. The company also has borrowings in foregin currency. The exchange rate between
the Indian rupee and foreign currencies has changed substantially in recent years and may fluctuate substantially
in the future. Consequently, the results of the Company's operations are affected as the rupee appreciates /
depreciates against these currencies. Foreign currency exchange rate exposure is partly balanced by purchase
of raw materials and services in the respective currencies.

(B) 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 for trade
receivables and deposits with banks and other financial assets. The Company ensures that sales of products are made
to customers with appropriate creditworthiness. Outstanding customer receivables are regularly monitored by the
management. An impairment analysis is performed at each reporting date on an individual basis for major customers.
Credit risk on cash and cash equivalents is limited as the Company generally invest in deposits with banks.

Refer footnotes c and d below note no.10 for ageing of trade receivables and movement in credit loss allowance.

(C) Liquidity Risk

Liquidity risk is the risk that the Company may not be able to meet its financial obligations without incurring unacceptable
losses. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available
for use as per requirements. The Company has obtained fund and non-fund based working capital lines from various
banks. Furthermore, the Company has access to undrawn lines of committed borrowing/facilities. The Company
invests its surplus funds in bank fixed deposits and in mutual funds, which carry no or low market risk. The company
consistently generates sufficient cash flows from operations or from cash and cash equivalents to meet its financial
obligations including lease liabilities as and when they fall due.

41 OTHER DISCLOSURES

(a) Details of Benami Property Held

The company does not hold any benami property as defined under the Benami Transactions (Prohibition) Act, 1988
(45 of 1988) and the rules made thereunder. No 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.

(b) Relationship With Struck off Companies

The Company has no transactions/balance with struck off companies under Section 248 of the Companies Act, 2013 or
Section 560 of Companies Act, 1956

(c) Willful Defaulter

The Company has not been declared a willful defaulter by any bank or financial institution or other lender (as defined
under the Companies Act, 2013) or consortium thereof, in accordance with the guidelines on wilful defaulters issued
by the Reserve Bank of India

(d) Registration Of Charges Or Satisfaction With Registrar Of Companies

The company do not have any charges which are yet to be registered with ROC beyond the statutory period except for
working capital ' 75 Cr.

(e) Details Of Crypto Currency Or Virtual Currency

The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year

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

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

(ii) provide any guarantee, security or the like on behalf of the ultimate beneficiaries

(g) 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:

(i) 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

(ii) Provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(h) Undisclosed Income

(i) The Company has not had 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).

(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

(i) Borrowings Obtained on the Basis of Security of Current Assets

For the borrowings secured against current assets, the company has filed Quarterly statements of current assets with
the banks and the same are in agreement with the books of accounts.

(j) Utilisation of Borrowed Funds and Share Premium

As on March 31, 2025 there is no unutilised amounts in respect of any issue of securities and long term borrowings
from banks and financial institutions. The borrowed funds have been utilised for the specific purpose for which the
funds were raised.

(k) Revaluation Of Property, Plant And Equipment And Intangible Assets

The Company has not revalued any of its property, plant and equipment (including Right of Use assets) and intangible
assets during the year.

(l) Compliance With Number of Layers of Companies

The Company is in compliance with the number of layers prescribed under clause (87) of section 2 of the Companies
Act read with the Companies (Restriction on number of Layers) Rules, 2017

(m) The Company uses SAP ECC as its accounting software. SAP ECC ensures an audit trail, providing standard functionality
and logging of all data changes in the system. This functionality and audit trail feature in SAP ECC has been operational
throughout the year for all relevant transactions recorded through the application. The Company uses accounting
documents to record all business transactions - posted documents are stored in SAP ECC for every transaction, and

a financial document once posted cannot be deleted or changed for data points impacting the financials. The SAP ECC
environment is appropriately governed, and only authorized users can make postings while interacting with the system
through the application layer. Normal/regular users are not granted direct database or super user level access that
would allow them to make changes to financial documents directly after they have been posted through the application.
To operate the SAP ECC application and the database, the system necessarily requires a set of super-users to have
database-level access. These super-users are obligated to perform system-related tasks and are not allowed to carry
out any direct changes/edits to financial transactions in the database, which if carried out would be unauthorized. In
the event of an unauthorized change by a super user, these can be detected through an investigative approach and/or
using services provided by SAP as part of their financial data quality check service, which validates the consistency
of financials based on client request. Therefore, while the database does not currently have the concurrent real-time
audit trail feature due to technical constraints, the tracking of changes can be accomplished through a focused inquiry
process.

(n) Events after the reporting period

Events after the reporting period are those events, favourable and unfavourable, that occur between the end of the
reporting period and the date when the financial statements are approved by the Board of Directors in case of a
company, and, by the corresponding approving authority in case of any other entity for issue. Two types of events can
be identified:

(i) those that provide evidence of conditions that existed at the end of the reporting period (adjusting events after
the reporting period); and

(ii) those that are indicative of conditions that arose after the reporting period (non-adjusting events after the reporting
period).

As on 10^th May, 2025 there were no material subsequent events to be recognized or reported that are not already
disclosed.

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

For Gokhale and Sathe

Chartered Accountants
(Firm Regn No.103264W)

Uday Girjapure Hetal Gogri Gala Narendra Salvi

Partner Vice Chairperson & Managing Director Managing Director

M. No. 161776 DIN: 00005499 DIN: 0299202

Place: Mumbai Piyush Lakhani Jeevan Mondkar

Date: 10^th May 2025 Chief Financial Officer Company Secretary

ICSI M.No.: A22565