U. PROVISIONS, CONTINGENT LIABILITIES AND
CONTINGENT ASSETS

Provisions are recognised when the Company has a
present obligation (legal or constructive) as a result of
a past event, it is probable that the company will be
required to settle that obligation and a reliable estimate
can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate
of the consideration required to settle the present
obligation at the reporting date, taking into account the
risks and uncertainties surrounding the obligation. Where
a provision is measured using the cash flows estimated to
settle the present obligation, its carrying amount is the

present value of those cash flows (when the effect of the
time value of money is material).

When some or all of the economic benefits required to
settle a provision are expected to be recovered from a
third party, a receivable is recognised as an asset if it is
virtually certain that reimbursement will be received and
the amount of the receivable can be measured reliably.

Warranties

Provisions of the expected cost of warranty obligations
under local sale of goods legislation are recognised at
the date of sale of the relevant products, at the director's
best estimate of the expenditure required to settle the
Company's obligation.

Onerous Contracts

Present obligations arising under onerous contracts are
recognised and measured as provisions. An onerous
contract is considered to exist where the company has a
contract under which the unavoidable costs of meeting
the obligations under the contract exceed the economic
benefits expected to be received under it. Estimates are
regularly reviewed and adjusted as appropriate for new
circumstances.

Restoration Provisions

Provisions for the costs to restore leased plant assets
to their original condition, as required by the terms
and conditions of the lease, are recognised when the
obligation is incurred, either at the commencement date
or as a consequence of having used the underlying asset
during a particular period of the lease, at the director's is
best estimate of the expenditure that would be required
to restore the assets.

Contingent Liabilities

A contingent liability is disclosed in respect of a possible
obligation that arise from past events whose existence will
be confirmed only on the occurrence or non-occurrence
of one or more uncertain future events not wholly within
the control of the Company or from a present obligation
that arises from past events which are not recognised
because:

i. it is not probable that an outflow of resources
embodying economic benefits will be required to
settle the obligation; or

ii. the amount of the obligation cannot be measured
with sufficient reliability.

Contingent Assets

Contingent assets are not recognised but only disclosed
when an estimate of the financial effect thereof can be
measured. Contingent assets are possible assets that arise
from past events whose existence will be confirmed only
by the occurrence of one or more uncertain future events
not wholly within control of the Company.

V. NON-CURRENT ASSETS HELD FOR SALE:

Non-current assets and disposal group are classified under
'Held for Sale' if their carrying amount is intended to be
recovered principally through sale rather than through
continuing use. The condition for classification of 'Held for
Sale' is met when the non-current assets is available for
immediate sale and the same is highly probable of being
completed within one year from the date of classification
under 'Held for Sale'. Non-current assets held for sale
are measured at the lower of carrying amount and fair
value less cost to sell. Non-current assets those ceases
to be classified under 'Held for Sale' shall be measured
at the lower of carrying amount before the non-current
asset and disposal group was classified under 'Held for
Sale' adjusted for any depreciation / amortization and its
recoverable amount at the date when the disposal group
no longer meets the 'Held for Sale' criteria.

W. EARNINGS PER SHARE

Basic EPS is computed by dividing the net profit
attributable to shareholders by the weighted average
number of equity shares outstanding during the year.

Diluted EPS is computed using the weighted average
number of equity and dilutive equity equivalent shares
outstanding during the year-end, except where the results
would be anti-dilutive.

x. dividend

Final dividend on shares is recorded as a liability on the
date of approval by the shareholders and interim dividends
are recorded as a liability on the date of declaration by the
Company's Board of Directors.

Y. OTHER MATTERS

Ministry of Corporate Affairs ("MCA") notifies new
standards or amendments to the existing standards under

Companies (Indian Accounting Standards) Rules as issued
from time to time. For the year ended March 31, 2026,
MCA has not notified any new standards or amendments
to the existing standards applicable to the Company.

4. Critical accounting judgement and key sources
of estimation uncertainty

In applying the Company's accounting policies, which are
described in note 3, the directors are required to make
judgements (other than those involving estimations)
that have a significant impact on the amounts
recognised and to make estimates and assumptions
about the carrying amounts of assets and liabilities
that are not readily apparent from other sources. The
estimates and associated assumptions are based on
historical experience and after considering the impact
of macroeconomic factors including geo-political factors
that are considered to be relevant. Actual results may
differ from these estimates.

The estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting estimates
are recognised in the period in which the estimate is
revised if the revision effects only that period, or in the
period of the revision and future periods if the revision
affects both current and future periods.

Critical judgements in applying the Company's
accounting policies

The following are the critical judgments, apart from those
involving estimations (which are presented separately
below), that the directors have made in the process of
applying the Company's accounting policies and that have
the most significant effect on the amounts recognised in
financial statements.

i. Business model assessment

Classification and measurement of financial assets
depend on the results of the SPPI (Sole Payment of
Principal and Interest) and the business model test. The
Company determines the business model at a level that
reflects how groups of financial assets are managed
together to achieve a particular business objective. This
assessment includes judgement reflecting all relevant
evidence including how the performance of the asset
is evaluated and their performance measured, the risks
that affect the performance of the assets and how these
are managed and how the managers of the assets are

compensated. The Company monitors financial assets
measured at amortised cost or fair value through other
comprehensive income that are derecognised prior to
their maturity to understand the reason for their disposal
and whether the reasons are consistent with the objective
of the business for which the asset was held. Monitoring is
part of the Company's continuous assessment of whether
the business model for which the remaining financial
assets are held continues to be appropriate and if it is not
appropriate, whether there has been a change in business
model and so a prospective change to the classification of
those assets. No such changes were required during the
periods presented.

ii. Significant increase in credit risk

ECL are measured as an allowance equal to 12-month
ECL for stage 1 assets, or lifetime ECL for stage 2 or stage
3 assets. An asset moves to stage 2 when its credit risk
has increased significantly since initial recognition. Ind
AS 109 does not define what constitutes a significant
increase in credit risk. In assessing whether the credit risk
of an asset has significantly increased, the Company takes
into account qualitative and quantitative reasonable and
supportable forward-looking information.

Key sources of estimation uncertainty:

The key assumptions concerning the future, and other key
sources of estimation uncertainty at the reporting period,
that may have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities
within the next financial year, are discussed below.

i. Taxation Provisions

Significant judgments are involved in determining
the provision for income taxes, including amount
expected to be paid/recovered for uncertain tax
positions. The Company's Current tax provision
relates to management's assessment of the
amount of tax payable on open tax positions
where the liabilities remain to be agreed with
the income tax authorities. Uncertain tax items
for which a provision is taken relates principally
to the interpretation of tax legislation regarding
arrangements entered into by the Company. Due
to the uncertainty associated with such tax items,
there is a possibility that, on conclusion of open
tax matters at a future rate, the final outcome may
differ significantly.

ii. Calculation of Loss Allowance

When measuring ECL the Company uses reasonable
and supportable forward- looking information, which
is based on assumptions for the future movement of
different economic drivers and how these drivers will
affect each other. Expected credit loss model is used
to arrive at the loss allowances. Expected loss rates
are based on average computed default rate based
on historical analysis of trade receivables.

Loss given default is an estimate of the loss arising
on default. It is based on the difference between
the contractual cash flows due and those that the
lender would expect to receive, taking into account
cash flows from collaterals and integral credit
enhancements.

Probability of default constitutes a key input in
measuring ECL. Probability of default is an estimate
of the likelihood of default over a given time horizon,
the calculation of which includes historical data,
assumptions and expectations of future conditions.

iii. Discount rate used to determine the carrying
amount of the Company's defined benefit
obligation

The Company's net obligation in respect of the
gratuity benefit scheme is calculated by estimating
the amount of future benefit that employees have
earned in return for their service in the current and
prior periods; that benefit is discounted to determine
its present value, and the fair value of any plan assets
is deducted. Information about assumptions and
estimation uncertainties in respect of defined benefit
obligation are disclosed in note 30.

The determination of the Company's defined benefit
obligation depends on certain assumptions, which
includes selection of the discount rate. The discount
rate is set by reference to market yields at the end of
the reporting period on market yields by reference
to government bonds. This assumption is considered
to be a key source of estimation uncertainty as
relatively small change in the assumption used may
have a significant effect on the Company's financial
statements within the next year. Further information
on the carrying amount of the company's defined
benefit obligation and the sensitivity of those

amounts to changes in discount rate are provided in
note 30.

iv. Non-current assets held for sale

Assets held for sale are measured at the lower of
carrying amount or fair value less costs to sell. The
determination of fair value less costs to sell includes
use of the Management's estimates and assumptions.
The fair value of the assets held for sale has been
estimated using valuation techniques (including
-market approach) which include unobservable
inputs.

v. Warranty Provision

A provision is estimated for expected warranty
claims in respect of products sold during the year
on the basis of past experience regarding failure
trends of products and costs of rectification or
replacement.

vi. Impairment testing

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.
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
consider past experience and represent management's
best estimate about future developments.

NOTES:

1) The Company's lease assets primarily consist of leases for land and material handling equipments.Finance cost accrued during
the year is included under Finance costs in the Statement of Profit and Loss.

2) The aggregate depreciation expense on ROU assets is included under depreciation and amortization expense in the Statement
of Profit and loss.

3) The total cash outflow for the leases amounted to ' 41.88 Lakhs.

The average credit period on sales of goods is 45 - 60 days. Interest is charged below 30 days @12% and above 30 days
@15% on overdue receivables from dealer, however no interest is charged on outstanding trade receivables (Other than
dealer).

The Company always measures the loss allowance for trade receivables at an amount equal to lifetime expected credit loss.
The expected credit losses on trade receivables are estimated using a provision matrix by reference to past default experience
of the debtor and an analysis of the debtor's current financial position, adjusted for factors that are specific to the debtors,
general economic conditions of the industry in which the debtors operate, and an assessment of both the current as well
as the forecast direction of conditions at the reporting date. Outstanding customer receivables are reviewed periodically.
Provision is made based on expected credit loss method or specific identification method.

The Company writes off a trade receivable when there is information indicating that the debtor is in severe financial difficulty
and there is no realistic prospect of recovery, e.g. when the debtor has been placed under liquidation or has entered into
bankruptcy proceedings, or when the trade receivables are over 180 days past due, whichever occurs earlier. None of the
trade receivables are subject to enforcement activities.

(ii) (a) Rights, preferences and restrictions attached to equity shares

The Company has only one class of equity shares having a par value of ' 5 per share. Each holder of equity shares is entitled to
one vote per share. The Company declares and pays dividends in Indian Rupees. The dividend, if any, proposed by the Board
of Directors is subject to the approval of the shareholders at the ensuing Annual General Meeting.

Note: Pursuant to the acquisition of the Company by Foseco India Limited with effect from 12 November 2025, Foseco India
Limited has become the holding company of Foseco Crucible (India) Limited (FCIL) formerly known as Morganite Crucible
(India) Limited.

Foseco India Limited acquired 99,081 shares through a mandatory public offer, increasing its shareholding to 76.77% of the
total equity share capital.(Refer Note 39).

Except for the change in shareholding and control, there are no changes in the rights, preferences, or restrictions attached to
the equity shares of the Company.

In the event of liquidation of the Company, the holders of equity shares shall be entitled to receive the remaining assets of the
Company, after distribution of all preferential amounts, in proportion to the number of equity shares held by them.

The Company manages its capital to ensure that it is able to continue as a going concern while maximizing returns to
stakeholders through optimization of its equity structure. The Company is not subject to any externally imposed capital
requirements.

Note :

(A) The Company has not issued any bonus shares in 5 years immediately preceding the year ended March 31, 2026.

(B) There were no shares bought back during five years immediately preceding the year ended March 31, 2026.

(C) There are no shares reserved for issue under options.

b) General reserve : The General reserve comprises of transfer of profits from retained earnings for appropriation purposes.
The reserve can be distributed/utilized by the Company in accordance with the Companies Act, 2013.

The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes.
There is no policy of regular transfer. As the general reserve is created by a transfer from one component of equity to
another and is not an item of other comprehensive income, items included in the general reserve will not be reclassified
subsequently to profit or loss.

c) Capital reserve : Capital reserve comprises of receipt of Central Government investment subsidy under '1993 package
scheme of incentives', State government investment subsidy under '1983 package scheme of incentives and capital
reserve arising on amalgamation of Diamond Crucible Company Limited.

d) Capital profit on forfeited shares - The capital profit on forfeited shares comprises of profit on re-issue of forfeited
shares.

e) Statutory Reserve : The statutory reserves comprises of the Investment allowance reserve created under the Income tax
Act, 1961.

The amount that can be distributed as dividend by the company to its equity shareholders is determined based on the separate
financial statements of the company and considering the requirements of the Companies Act, 2013. Thus, the amounts
reported above are not distributable in entirety.

On 14 August 2025 final dividend for FY 2024-25 of ' 19/- per share (total dividend ' 1064 lakhs) was paid to holders of fully
paid equity shares.

In respect of the current year, the directors proposed that a dividend of ' 12.50 per share be paid on equity shares. The equity
dividend is subject to approval by shareholders at the annual general meeting and has not been included as a liability in these
financial statements. The total estimated equity dividend to be paid is ' 700 Lakhs.

1. The Government of India has consolidated 29 existing labour legislations into a unified framework comprising four labour
codes viz the Code on Wages, 2019, the Code on Social Security, 2020, the Industrial Relations Code, 2020, and the
Occupational Safety, Health and Working Conditions Code, 2020 (collectively referred to as the "Codes"). The Codes have
been made effective from 21 November, 2025. The Ministry of Labour & Employment published draft Central Rules and FAQs
to enable assessment of the financial impact due to changes in regulations.

The incremental impact of these changes, assessed by the Company, on the basis of the information available, consistent with
the guidance provided by the Institute of Chartered Accountants of India, is ' 36.89 lakhs for Gratuity and ' 24.47 lakhs for
Leave Encashment has been recognised as exceptional item i n the results of the Company for the quarter and year ended 31
March, 2026 respectively.

Once Central / State Rules are notified by the Government on all aspects of the Codes, the Company will evaluate impact, if
any, on the measurement of employee benefits and would provide appropriate accounting treatment.

2. 'In 2023, the Company commenced a project to develop a product line for a new market and made certain investments as
part of this project. Subsequent to the acquisition of the Company, by Foseco India Limited (FIL) during the year, this project
was suspended. As a result, the project related assets have been assessed for impairment and written down to recoverable
value. Accordingly, an impairment loss of ' 1,806.20 lakhs has been recognized in the statement of profit and loss and
disclosed as an exceptional item, in accordance with the applicable provisions of Ind AS.

Note: the Company does not have outstanding diluted potential Equity shares. Consequently, the basic and diluted earnings
per share of the Company remain the same.

30 Provision for Compensated Absences and Gratuity

The Government of India has announced the implementation of the four Labour Codes - the Code on Wages, 2019,
the Industrial Relations Code, 2020, the Code on Social Security, 2020 and the Occupational Safety, Health and Working
Conditions Code, 2020 with effect from 21^st November, 2025, rationalising 29 existing labour laws.

The Ministry of Labour & Employment published draft Central Rules and FAQs to enable assessment of the financial impact
due to changes in regulations.

The Company has assessed the impact of these changes, the liability as per new labour code is in line with the provision
recognised in books of account as per existing Company policy. The Company continues to monitor the finalization of Central
/ State Rules and clarifications from the Government on other aspects of the Labour Code and will align policies/pay structure.

a. Long term employee benefit obligations
Compensated absences

The leave obligations cover the Company's liability for earned leave which is classified as other long-term benefits.

ii. Gratuity

In accordance with applicable Indian laws, the Company provides for gratuity, a defined benefit retirement plan (Gratuity
Scheme) covering certain categories of employees. The Gratuity Scheme provides a lump sum payment to vested employees,
at retirement or termination of employment, an amount based on the respective employee's last drawn salary and the years
of employment with the Company. The Company provides the gratuity benefit through annual contributions to the fund
managed by the Life Insurance Corporation of India (LIC) through Foseco Crucible (India) Limited Gratuity Fund, under this
plan the settlement obligation remains with the Company. The Company funds the liability based on estimations of expected
gratuity valuation provided by the Actuary.

The above sensitivity analysis is based on a change in an assumption while holding all other assumptions constant. In practice,
this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of
the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit
obligation calculated with the projected unit credit method) has been applied as when calculating the defined benefit liability
recognized in the balance sheet.

VII. Risk Exposure

Through its defined benefit plan, the Company is exposed to a number of risks, the most significant of which are detailed
below:

Asset volatility

The plan liabilities are calculated using a discount rate set with reference to bond yields. If plan assets underperform this yield,
this will create a deficit. All plan assets are maintained in a trust fund managed by a public sector insurer i.e., LIC of India. LIC
has a sovereign guarantee and has been providing consistent and competitive returns over the years. The Company has opted
for a traditional fund wherein all assets are invested primarily in risk averse markets. The Company has no control over the
management of funds but this option provides a high level of safety for the total corpus. A single account is maintained for both
the investment and claim settlement and hence, 100% liquidity is ensured. Also, interest rate and inflation risk are taken care of.

Changes in bond yields

A decrease in bond yields will increase plan liabilities, although this will be partially offset by an increase in yield in the value
of the plans' bond holdings.

Future salary escalation and inflation risk

Since price inflation and salary growth are linked economically, they are combined for disclosure purposes. Rising salaries will
often result in higher future defined benefit payments resulting in higher present value of liabilities. Further, unexpected salary
increases provided at the discretion of the management may lead to uncertainties in estimating this increasing risk.

Asset-Liability mismatch risk

Risk which arises if there is a mismatch in the duration of the assets relative to the liabilities. By matching duration with the
defined benefit liabilities, the Company is successfully able to neutralize valuation swings caused by interest rate movements
as it has adopted asset-liability management approach.

32 Segment Reporting

(a) Description of segments and principal activities

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief operating
decision maker. The Managing Director has been identified as the Chief Operating Decision Maker (CODM).

The Company recognizes its sale of crucibles activity as its only primary business segment since its operations
predominantly consist of manufacture and sale of crucibles to its customers. The 'Chief Operating Decision Maker'
monitors the operating results of the Company's business as single segment. Accordingly in context of Ind AS "Operating
Segments" the principle business of the Company constitute a single reportable segment. Accordingly, income from sale
of crucibles comprises the primary basis of segmental information set out in these financial statements.

b) Geographical segments:

The geographical information analyses the Company's revenues and assets by the Company's country of domicile (i.e.
India) and outside India presenting geographical information, segment revenue has been on the geographic location of
customers and segment assets which have been based on the geographical location of the assets.

c) Information about major customers:

The Company is domiciled in India, however also sells its products outside India. The amount of its revenue from external
customers broken down by the location of the customers is shown in table below :

B. Measurement of fair values

(i) Valuation techniques and significant unobservable inputs.

Level 1: Fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or
liabilities

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

Level 3: Fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that
is not based on observable market data (unobservable inputs).

(ii) Valuation techniques used to determine fair value

Specific valuation techniques used to value the financial instruments include:

- the use of quoted market prices or dealer quotes for similar instruments

- the fair value of the remaining financial instruments is determined using discounted cash flow analysis.

(iii) Valuation processes

The finance team performs the valuation of financial assets and liabilities required for financial reporting purposes.

34 Financial Risk Management
1 Financial risk management

The Company's activities exposes it to market risk, liquidity risk and credit risk. This note explains the sources of risk which the
Company is exposed to and how the Company manages the risk.

(A) Credit risk

The Company is exposed to credit risk from its operating activities (primarily trade receivables) and deposits with banks
and other financial instruments. For banks and other financial institutions, only high rated banks/ financial institutions are
accepted. The balances with banks, loans given to employees, security deposits are subject to low credit risk and the risk
of default is negligible or nil. Hence, no provision has been created for expected credit loss for credit risk arising from these
financial assets. The Company considers the probability of default upon initial recognition of asset and whether there has
been a significant increase in the credit risk on an ongoing basis throughout each reporting period. To assess whether there is
a significant increase in credit risk the company compares the risk of a default occurring on the asset as at the reporting date
with the risk of default as at the date of initial recognition. It considers available reasonable and supportive forward-looking
information, for e.g., external credit rating (to the extent available), actual or expected significant adverse changes in business,
financial or economic conditions that are expected to cause a significant change to borrower's ability to meet its obligations
is credit risk.

I. Cash and bank balance

Credit risk from balances/ fixed deposits banks is managed in accordance with the Company's risk management policy.
Investments of surplus funds are made only with approved counterparties and within limits assigned to each counterparty.
The limits are assigned based on corpus of investable surplus and corpus of the investment avenue. The limits are set to
minimize the concentration of risks and therefore mitigate financial loss through counterparty's potential failure to make
payments. The Company's maximum exposure to credit risk on account of deposits with banks is as mentioned below -

II. Trade receivables

Credit risk arises from the possibility that customer will not be able to settle their obligations as and when agreed. To
manage this, the Company periodically assesses the financial reliability of customers, taking into account the financial
conditions, current economic trends, analysis of historical bad debts, ageing of accounts receivable and forward looking
information. Individual credit limits are set accordingly.

The Company uses the Expected Credit Loss (ECL) model to assess the impairment gain or loss. As per ECL simplified
approach, the Company uses a provision matrix to compute the expected credit loss allowance for trade receivables. The
provision matrix takes into account a continuing credit evaluation of Company's customers' financial condition aging
of trade accounts receivable the value and adequacy of collateral received from the customers in certain circumstances
(if any) the Company's historical loss experience and adjustment based on forward looking information. The Company
defines default as an event when there is no reasonable expectation of recovery.

Loss allowance on account of specific identification

Trade receivables provided for on the specific identification basis as of March 31, 2026 are ' 0.22 lakhs ( March 31, 2025
was ' 5.66 lakhs).

(B) Liquidity risk

Ultimate responsibility for liquidity risk management rests with the board of directors, which has established an appropriate
liquidity risk management framework for management of the company's short, medium and long-term funding and liquidity
management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and
by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and
liabilities.

The Company's principal sources of liquidity are cash and cash equivalents and cash flow that is generated from operations.
The Company has no outstanding bank borrowings. The Company believes that the current working capital is sufficient to
meet its current obligatory requirements. Accordingly, no liquidity risk is perceived.

(C) 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- such as foreign exchange rates, interest rates and equity prices - will affect the Company's income or the
value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk
exposures within acceptable parameters, while optimizing the return. Market risk comprises of:

I. Interest rate risk

II. Foreign currency risk

Financial instruments affected by market risk include other financial assets, trade receivables and trade payables.

I) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market interest rates. Since the Company does not have any financial instrument with variable interest rates, it is not exposed
to interest rate risk.

II) Foreign currency risk

The Company is engaged in international trade and thereby exposed to foreign exchange risk arising from foreign currency
transactions, primarily with respect to the USD, EUR, GBP and JPY. Foreign exchange risk arises from recognised assets and
liabilities denominated in a currency other than company's functional currency (INR). The Company's exposure to foreign
currency arises from short term receivables and payables where fluctuations in the foreign exchange rates are generally not
significant and consequently limiting the Company's exposure.

III) Interest rate risk

The Company's main interest rate risk arises from deposits placed over a period of time on frequent basis thereby exposing
the Company to interest rate risk. The Company's policy is to have fixed interest rate at the time of deal execution.

IV) Price Risk

The Company does not have any financial assets or liabilities carried at fair value that are subject to market price risk. The
Company has investment in equity share of a listed Company (subsidiary company), this investment is carried at cost and does
carry any price risk.

V) Financial assets carried at fair value as at 31 March, 2026 is ' Nil and financial assets carried at amortized cost as at 31
March, 2026 is ' 6,434.73 lakhs. The Company has assessed the counterparty credit risk in connection with Cash and cash
equivalents, bank deposits and earmarked balances with banks amount to ' 3,693.70 lakhs as at 31 March, 2026 where the
Company has assessed the counterparty credit risk.

VI) Trade receivables amounting to ' 2,544.10 lakhs as at 31 March, 2026 is valued at considering provision for allowance under
the expected credit loss method. This assessment is based on the likelihood of the recoveries from the customers in the
present situation. The Company closely monitors its customers who are going through financial stress and assesses actions
such as change in payment terms, recognition of revenue on collection basis etc., depending on severity of each case.

Basis this assessment, the allowance for doubtful trade receivables is considered adequate.

Performance obligations

The Company satisfies its performance obligations pertaining to the sale of crucibles at point in time when the control of goods
is actually transferred to the customers. No significant judgment is involved in evaluating when a customer obtains control
of promised goods. The payment is generally due within 45-60 days. The Company is obliged for refunds due to shortages
during the mode of transportation. There are no other significant obligations attached in the contract with customer.

Transaction price

There is no remaining performance obligation for any contract for which revenue has been recognized till period end. Further,
the Company has not applied the practical expedient as specified in para 121 of Ind AS 115 as the Company do not have
any performance obligation that has an original expected duration of one year or less or any revenue stream in which
consideration from a customer corresponds directly with the value to the customer of the entity's performance completed to
date.

Determining the timing of satisfaction of performance obligations

There are no significant judgements involved in ascertaining the timing of satisfaction of performance obligations, in evaluating
when a customer obtains control of promised goods, transaction price and allocation of it to the performance obligations.

Determining the transaction price and the amounts allocated to performance obligations

The transaction price ascertained for the only performance obligation of the Company (i.e. Sale of goods) is agreed in the
contract with the customer. There is no variable consideration involved in the transaction price except for refund due to
shortages which is adjusted with revenue.

37 Transfer Pricing

The Company has developed a comprehensive system of maintenance of information and documents as required by the
transfer pricing legislation under section 92-92F of the Income Tax Act, 1961. The management is of the opinion that its
international transactions are at arm's length so that the aforesaid legislation will not have any impact on the financial
statements, particularly on the amount of tax expense and that of provision for taxation.

During the earlier years the Company has applied for Advance Pricing Agreement (APA) before the Central Board of Direct Tax
(CBDT) and Government of India for International Inter-company related party transactions with Associated Enterprises (AE).
The Company has entered into in APA agreement with CBDT dated 18 August, 2021 for 5 years ended 31 March, 2021.

The Company has also filed application for renewal of APA agreement for five years (FY 2021-22 to 2025-26) on 26 March
2021 and current tax working for FY 2024-25 is calculated based on the APA agreement signed on 18th August, 2021 for 5
years ended 31 March, 2021.

The Domestic Transfer Pricing Regulations as prescribed under section 92BA of the Income Tax Act, 1961 was introduced from
April 1, 2012. The Company has been consistently transacting with related parties on an Arm's Length basis in accordance
with the Group Transfer Pricing Policy. The Company is of the opinion that there will be no significant changes to Arm's length
price under determination in order to comply with the requirement of section 92BA of Income Tax Act. Hence, there will be
no material impact on the financial statements.

The Company tests goodwill for impairment at least annually, or more frequently if events or changes in circumstances
indicate that it might be impaired. The Company has identified a single cash generating unit ("CGU") based on the business.
The recoverable amount of CGU is determined based on higher of value-in-use and fair value less cost to sell. The recoverable
value was determined by value in use in cases where there is no basis for making a reliable estimate of the price at which
an orderly transaction to sell the asset would take place between market participants at the measurement date under
current market conditions. In determining the value in use, cash flow projections from financial budgets approved by senior
management have been considered.

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 are considered for next 5 years
and consider past experience and represent management's best estimate about future developments. Cash flows
beyond the five-year period are extrapolated using a 2% growth rate. The pre-tax discount rate applied to cash flow
projections for impairment testing during the current year is 12%. An analysis of the sensitivity of the computation of
recoverable amount to a change in key parameters, based on reasonable assumptions, did not identify any probable
scenario in which the recoverable amount of the CGU would decrease below its carrying amount other than the
amount.

39 On August 22, 2025, Morgan Advanced Materials plc, the ultimate holding company of Morganite Crucible (India) Ltd (MCIL),
entered into a Share Purchase Agreement (SPA) with Vesuvius Plc to divest its Molten Metal Systems (MMS) business, which
includes a 75% equity stake in MCIL for aggregate consideration of ' 65,394 lakhs.

The transaction has been executed through a share swap arrangement. As part of this deal, Foseco India Ltd (FIL), a
Vesuvius Group entity, has acquired 75% stake in MCIL from Morganite Crucible Ltd (UK) and Morgan Terrassen B.V.,
and in return, FIL has issued new equity shares to MCIL's promoters under the share swap structure in the agreed
ratio.

FIL received in principle approvals from the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) on 3
November, 2025 and 4 November, 2025, respectively. Subsequently on 12 November, 2025, upon fulfillment of all terms and
conditions stipulated in the Share Purchase Agreement (SPA) dated 22 August, 2025, the Vesuvius Group, through Foseco
India Limited, acquired control over MCIL.

The acquisition triggered a Mandatory Tender Offer (MTO) under Regulations 3(1) and 4 of the SEBI (Substantial Acquisition
of Shares and Takeovers) Regulations. Following the completion of the MTO, FIL holds 76.77% of the issued share capital of
FCIL, meaning that the Company's public shareholding has fallen below the statutory limit of 25%. FIL is in the process of
taking steps to return the public shareholding to 25%.

Following the acquisition Foseco Crucible (India) Limited applied for a change in name with the Ministry of Corporate Affairs
(MCA).

With effect from 9 February, 2026, Morganite Crucible (India) Limited has been renamed as Foseco Crucible (India) Limited,
as evidenced by the Certificate of Incorporation issued pursuant to the change of name.

The same certificate was submitted to the BSE, following which the Company's name has also been updated in the BSE
records.

40 Other Information

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

b) The Company does not have any Benami property, where any proceedings have been initiated or are pending against
the Company for holding any Benami property.

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

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

e) The Company have not advanced or loaned or invested funds (either from borrowed funds or share premium or any
other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the
understanding, whether recorded in writing or otherwise, that the Intermediary shall:

(i) 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

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

f) The Company have 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,

g) No direct database changes in accounting software are allowed and all data changes are governed at application layer
to avoid system performance problems and to follow the principle of data minimization. There are alternate governing
processes in place to mitigate any risk of unauthorized access to database.

h) The Company maintains its books of account in electronic form. For the period from 1 April, 2025 to 22 March, 2026,
daily backups were not maintained on a server physically located in India. With effect from 22 March, 2026, daily
backups are being maintained on a server that is physically located in India.

i) The Company does not have any 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).