XV. Provisions, Contingent Liabilities and Contingent
Assets:

Provisions are recognized when the Company
has a present obligation (legal or constructive)
as a result of a past event, it is probable that
an outflow of resources embodying economic
benefits will be required to settle the obligation
and a reliable estimate can be made of the amount
of the obligation. Provisions are measured at
the best estimate of the expenditure required
to settle the present obligation at the Balance
Sheet date.

Contingent liabilities are disclosed when there is
a possible obligation arising from past events, the
existence of which 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 where it is either
not probable that an outflow of resources will
be required to settle the obligation or a reliable
estimate of the amount cannot be made.

If the effect of the time value of money is material,
provisions are discounted using a current pretax
rate that reflects, when appropriate, the risks
specific to the liability. When discounting is used,
the increase in the provision due to the passage of
time is recognized as finance cost.

Contingent Assets are not recognized but
disclosed in the Financial Statements when
economic inflow is probable.

XVI. Segment Information:

The Managing Director (MD) is designated as
company's Chief Operating Decision Maker
(CODM). The MD reviews the company's internal
financial information for the purpose of evaluating
performance and assigning resources to segments.
The Company has determined the operating
segment based on structure of reports reviewed
by MD. The Company operates in a single primary
business segment, i.e. Synthetic Lattices & Rubber.

XVII. Income taxes:

Income tax expense for the year comprises of
current tax and deferred tax, recognized in
the Statement of Profit and Loss, except to the
extent it is relates to a business combination, or
items recognized directly in equity or in other
Comprehensive Income. Current tax is the
expected tax payable/receivable on the taxable
income/loss for the year using applicable tax rates
at the Balance Sheet date, and any adjustment to
taxes in respect of previous years. Interest income/
expenses and penalties, if any, related to income
tax are included in current tax expense.

Deferred tax is recognized in respect of temporary
differences between the carrying amount of assets
and liabilities for financial reporting purposes
and the corresponding amounts used for taxation
purposes. A deferred tax liability is recognized
based on the expected manner of realization or
settlement of the carrying amount of assets and
liabilities, using tax rates enacted, or substantively
enacted, by the end of the reporting period.

Deferred tax assets are recognized only to the
extent that it is probable that future taxable profits
will be available against which the asset can be
utilized. Deferred tax assets are reviewed at each
reporting date and reduced to the extent that it is
no longer probable that the related tax benefit will
be realized.

Deferred tax assets deriving from carry forward
of unused tax credits (including MAT) and unused
tax losses are recognized to the extent that it is
probable that future taxable profit will be available
in future against which the deductible temporary
differences, unused tax losses and credits can be
utilized. Deferred tax relating to items recognized
in other comprehensive income and directly in

equity is recognized in correlation to the underlying
transaction.

Current tax assets and current tax liabilities are
offset when there is a legally enforceable right
to set off the recognized amounts and there is
an intention to settle the asset and the liability
on a net basis. Deferred tax assets and deferred
tax liabilities are offset when there is a legally
enforceable right to set off current tax assets
against current tax liabilities; and the deferred
tax assets and the deferred tax liabilities relate to
income taxes levied by the same taxation authority.

XVIII. Research and Development:

Expenditure on research and development is
charged to statement of profit and loss in the year
in which it is incurred, with the exception of:

• Expenditure incurred in respect of major new
products where the outcome of these projects
is assessed as being reasonably certain as
regards viability and technical feasibility. Such
expenditure is capitalized and depreciated
over useful life. Capital expenditure in respect
of assets used for conducting research
activities are capitalized under respective
heads of Property Plant and Equipment. These
assets are depreciated over their useful life.

XIX. Earnings per Share:

Basic earnings per share is computed by dividing the
net profit for the period attributable to the equity
shareholders of the Company by the weighted
average number of equity shares outstanding
during the period. The weighted average number
of equity shares outstanding during the period and
for all periods presented is adjusted for events,
such as bonus shares, other than the conversion
of potential equity 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 for the period attributable to equity
shareholders and the weighted average number of
shares outstanding during the period is adjusted
for the effects of all dilutive potential equity shares

1.4 Recent Accounting Pronouncements

In May 2025, MCA notified amendments to Ind AS 21

- The Effects of Changes in Foreign Exchange Rates,

applicable w.e.f. April 1, 2025. The company has
evaluated the requirements of the amendment and
there is no impact on its Financial Statements.

In August 2025, MCA notified the following
amendments to:

i. Ind AS 1, Presentation of Financial Statements,
applicable w.e.f. April 1, 2025 - The amendment
relates to classification of liabilities as current
or non-current and non-current liabilities with
covenants. In the context of classifying a liability as
current, it removes the requirement of existence of
a right to defer settlement for at least 12 months
after the reporting date and instead requires
that the said right should exist on the reporting
date and have substance. The amendment also
introduces guidance on classification of liabilities
with covenants. The Company has no impact of
these amendments in its classification criteria of
current and non-current liabilities.

ii. Ind AS 7, Statement of Cash Flows and Ind AS 107,
Financial Instruments - Disclosures, applicable
w.e.f April 1, 2025 - The amendment in Ind AS 7
requires to inform users of financial statements of
the existence of supplier finance arrangements and
explain the nature of the arrangements, the carrying
amount of liabilities and the range of payment
due dates. Ind AS 107 has been amended to add
supplier finance arrangements as a factor that may
cause concentration of liquidity risk. The company
has evaluated the requirements of the amendment
and there is no impact on its financial statements.

iii. Ind AS 12 - International Tax Reform- Pillar
Two Model Rules applicable immediately- The
amendments provide a temporary exception to
the requirements of recognising and disclosing
information about deferred tax assets and
liabilities related to Pillar Two income taxes and
requires an entity to disclose that it has applied
the temporary exception. The company has
evaluated the requirements of the amendment
and there is no impact on its financial statements.

1.5 Standards issued but not yet effective

MCA notifies new standards or amendments to the
existing standards under companies (Indian Accounting
Standards) Rule, 2015 as issued from time to time.
As on reporting date, the MCA has not notified any
new standards or amendments which has been made
applicable with effect from April 01, 2026, onwards.

Notes:

(i) The Company's Investment properties consist of residential property given on rentals.

(ii) As at 31st March, 2026,the fair value of all properties is Rs 765 Lakhs. These valuations are performed by Chartered Surveyors - AH
Pandit & Associates, an accredited independent government registered valuer.

(iii) The fair value was derived using the market comparable approach based on recent market price without any significant adjustments
beings made to the market observable data in the neighbourhood. Observed by the valuers for similar properties in the locality and
adjusted basis on the valuer's knowledge of the factors specification to the respective properties. Fair valuation is based on market
participant's ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market
participant that would use the asset in its highest and best use. In estimating the fair value of properties, the highest and best use of the
properties is their current use.

Notes:

(i) All investments classified under financial assets are initially measured at fair value.

(ii) The Company, on initial recognition, chooses to measure the same either at FVTOCI or FVTPL, which is done on an instrument-by¬
instrument basis.

(iii) Fair value changes on an equity instrument are recognized as other income in the Statement of Profit and Loss unless the Company has
elected to measure irrevocably such instrument at FVTOCI. Fair value changes excluding dividends, on an equity instrument measured
at FVTOCI are recognized in OCI. Amounts recognized in OCI are not subsequently reclassified to the Statement of Profit and Loss even
on the sale of investment.

(iv) Dividend income on the investments in equity instruments are recognized as 'other income' in the Statement of Profit and Loss.

Nature and purpose of reserves :

(a) Capital Reserve : During amalgamation, the excess of net assets taken, over the cost of consideration paid is treated as
capital reserve.

(b) Capital Redemption Reserve : The Company has recognised Capital Redemption Reserve on buyback of equity shares
from its retained earnings. The amount in Capital Redemption Reserve is equal to nominal amount of the equity
shares bought back.

(c) Securities Premium : The amount received in excess of face value of the equity shares is recognised in Securities Premium.
In case of equity settled based payment transactions,the difference between fair value on grant date and nominal value of
share is accounted as securities premium.

(d) Retained Earning : Retained earnings are the profits that the Company has earned till date,less any transfers to general
reserve , dividends or other distributions paid to shareholders.

(e) Equity instruments through Other Comprehensive Income:Gain / (Loss) on fair valuation of Non Current Investments
classified under Equity instruments through Other Comprehensive Income

TERM LOAN FROM BANK

i. Term Loans from banks is secured by first parri passu charge over Plant and Machinery at plants located in Taloja,
Maharashtra and Valia, Gujarat, Immovable fixed assets (Factory land and Building) on the plant located at Taloja
Maharashtra and second parri passu charge on stock, book debts and current assets of the company.The credit facilities
availed by the Company carry interest rate in the range of 5.70 % p.a. to 7.45% p.a.

ii. Term Loan have been applied for the purpose of capacity expansion of the plant and various other capex plans.

iii. Registration of charges or satisfaction with registrar of companies has been complied within the statutory period.

iv. Term Loan Repayment : Term Loan of Rs. 6,240.55 Lakhs, repayable in quarterly installments upto January 2028.

VEHICLE LOAN FROM BANK :

Vehicle Loan from Banks is secured by first charge over the Vehicle Purchased. It Carries the interest rate of 10.5 % p.a and is
repayable in monthly installments over a period of 5 years upto Mar 2030.

Notes:

i. It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above contingent liabilities pending
resolution of the respective proceedings, as it is determinable only on receipt of judgements/decisions pending with various forums/
authorities.

ii. The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required
and disclosed as contingent liabilities where applicable, in its financial statements. The Company does not expect the outcome of these
proceedings to have a materially adverse effect on its financial results.

iii. Income tax liability of Rs. 931.59 Lakhs is in respect of certain disallowances for several years pertaining to R&D / Section 80IA
Deductions/LTCG on Sales Office/ Depreciation on Rented Flats and some transfer pricing adjustments by Income tax authorities which
are disputed by the Company.

iv. Customs authorities have raised notice dated 22-07-2005 penalty of Rs. 142.09 Lakhs for a dispute regarding high seas sale and which
is disputed by the Company. Hence, disclosed as contingent liability.

v. GST authorities have issued orders raising demand towards excess ITC availed/utilised amounting to Rs. 216.57 Lakhs, including
applicable interest and penalty during FY 2019-20 to FY 2023-24 . Further, Order for FY 2018-19 has been received raising a demand
of Rs. 13.31 Lakhs towards tax, interest and penalty in respect of ITC claimed on construction of Plant & Machinery.

NOTE 45: SEGMENT REPORTING

"Operating segments are reported in a manner consistent with internal reporting provided to the Chief Operating Decision
Maker (CODM) of the Company. The CODM who is responsible for allocating resources and assessing performance of the
operating segments has been identified as the Managing Director of the Company. The CODM examines the company's
performance from a geographical perspective and has identified two of its following business as identifiable segments:

a. India

b. Outside India

NOTE 47: EMPLOYEE BENEFITa) Contribution to Defined Contribution Plan:

i) Employers Contribution to Provident Fund including contribution to Pension Fund amounting to Rs. 287.12 Lakhs
(Previous Year - Rs.273.52 Lakhs) has been included under Contribution to Provident and other Funds.

(Refer Note - 34)

ii) Compensated absences:

The Company provides for encashment of leave with pay subject to certain rules. The employees are entitled to
accumulate leave subject to certain limits, for future encashment. The liability is provided based on the number of
days of unutilized leave at each Balance Sheet date on the basis of an independent actuarial valuation.

iii) Superannuation:

The Company makes contribution to Superannuation Scheme, a defined contribution scheme administered by
Insurance Companies. The Company has no obligation to the scheme beyond its annual contribution.

b) Contribution to Defined Benefit Plans:

i) Gratuity:

The Company provides for gratuity as per the Payment of Gratuity Act, 1972. Employees who are in continuous
service for a period of 5 years are eligible for gratuity. 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 Company accounts for the liability for gratuity benefits payable in future based on an actuarial
valuation.

These plans typically expose the Company to actuarial risks such as, Investment risk, Interest rate risk, longevity
risk, salary escalation rate risk etc.

a) Investment risk:

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

b) Interest rate risk:

A decrease in the bond interest rate will increase the plan liability. However this will be partially offset by an
increase in the return on plans debt investments.

c) 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 during their employment.

An increase in the life expectancy of the plan participants will increase the plan's liability.

d) Salary Escalation Rate risk:

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

The following table sets out the status of the Gratuity Plan as required under IND AS 19.

The principal assumption used for the purposes of the actuarial valuation is as follows:

The plan does not invest directly in any property occupied by the Company or in any financial securities issued by the
Company.

The estimates of future salary increases, considered in actuarial valuations, taking account of inflation, seniority, promotions,
and other relevant factors, such as supply demand in the employment market.

The overall expected rate of return on assets is determined based on market prices prevailing on that date, applicable to the
period over which the obligation is to be settled. There has been significant change in expected rate of return on assets due to
change in market scenario.

NOTE 48: UTILISATION OF BORROWED FUNDS,SHARE PREMIUM OF ANY OTHER SOURCE
OF FUNDS

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

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

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

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

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

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

NOTE 49: FINANCIAL RISK MANAGEMENT

The Company's business activities are exposed to a variety of financial risks i.e. Liquidity risk, Market risks and Credit risk.
The Company's senior management has overall responsibility for establishing and governing the Company's risk management
framework.

The Company has constituted a Risk Management Committee, which is responsible for developing and monitoring the Company's
risk management policies. The Company's risk management policies are established to identify and analyse the risks faced by the

Company, to set and monitor appropriate risk limits and controls, periodically review the changes in market conditions and reflect
the changes in the policy accordingly. The key risks and mitigating actions are also placed before the Board of the Company.

a) Liquidity Risk:

Liquidity risk is the risk that the Company will face difficulty in meeting its obligations associated with its financial
liabilities. 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 limits from its bankers.

The Company regularly monitors the rolling forecasts to ensure it has sufficient cash on an on-going basis to meet its daily
operational needs. Any short-term surplus cash generated, over and above the normal requirement for working capital is
invested in Bank Fixed deposits and Mutual funds, which carry minimal mark to market risks.

b) Market Risks:

Market risk is the risk of changes in market prices, liquidity and other factors that could have an adverse effect on
realizable fair values of financial assets and financial liabilities and future cash flows to the Company. The Company's
activities expose it to risk from movements in foreign currency exchange rates, interest rates, and market prices that
affect its assets, liabilities and future transactions.

I) Foreign currency risk:

i. Potential impact of risk:

The Company undertakes transactions denominated in foreign currency and is thus exposed to foreign currency risk
from transactions and translation.

iii. Sensitivity to risk:

The sensitivity of profit and loss to changes in the exchange rates arises mainly from un hedged foreign currency
denominated financial instruments. The foreign exchange rate sensitivity is calculated for each currency by aggregation
of the net foreign exchange rate exposure of currency and a parallel foreign exchange rates shift in the foreign exchange
rates of each currency by 5% which represents Management's assessment of the reasonably possible change in foreign
exchange rates.

II) Price risk:

i. Potential impact of risk:

The Company is mainly exposed to the price risk due to its investments in equities & mutual funds. The price risk
arises due to uncertainties about the future market value of these investments.

As at March 31, 2026, the investments in equities and mutual funds amount to Rs. 9,490.56 Lakhs (as at March 31,
2025 - Rs 8339.80 Lakhs) which are exposed to price risk.

ii. Management policy:

The Company has laid policies and guidelines which it adheres to in order to minimize price risk arising from Investments
in Equities & Mutual funds.

iii. Sensitivity to risk:

A 10% increase in prices would have led to approximately an additional Rs.949.06 Lakhs gain in the Statement of Other
Comprehensive Income for the year ended March 31, 2026 (for the year ended March 31, 2025 Rs 833.98 Lakhs). A
10% decrease in prices would have led to an equal but opposite effect.

III) Interest rate risk:

i. Potential impact of risk:

Interest rate risk is the risk that the fair values of future cash flows of a financial instrument will fluctuate because of
changes in market interest rates. The Company is exposed to interest rate risk because the Company borrows funds
at both fixed and variable interest rates.

As at March 31, 2026, the Company has variable rate borrowings to the extent of Rs. 13,887.44 Lakhs (As at March
31, 2025, Rs 18,377.73 Lakhs).These are exposed to Interest rate risk.

ii. Management policy:

The risk is managed by maintaining an appropriate mix between fixed and floating rate borrowings. The Company has
laid policies and guidelines which it adheres to in order to minimize the interest rate risk.

iii. Sensitivity to risk:

The sensitivity analysis has been determined based on exposure to interest rates at the end of reporting period. For
floating rate liabilities, the analysis is prepared assuming that the amount of liability as on the end of reporting period
was outstanding for the entire year. A 25 basis point increase or decrease is used when reporting interest rate risk
internally and represents Managements assessment of the reasonable possible change in interest rates.

If Interest rates had been 25 basis point higher, the Company's profit would decrease by approximate Rs.34.71
Lakhs (For the year ended March 31, 2025, profit would decrease by Rs.45.94 Lakhs). A 25 basis point decrease in
Interest rates would have led to an equal but opposite effect.

c) Credit Risk:

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to
the Company. The Company has adopted a policy of dealing with creditworthy counterparties and obtaining sufficient
collateral, wherever appropriate,as a means of mitigating the risk of financial loss from defaults. Trade receivables
consist of a large number of customers, across geographies, hence is not exposed to concentration risk. Ongoing credit
evaluation is performed on the financial condition of its customers.

NOTE 50: FAIR VALUE MEASUREMENT

The Management has assessed that its financial assets and liabilities like cash and cash equivalents, trade receivables, trade
payables, bank overdrafts and other current liabilities approximate their carrying values largely due to the short-term
maturities of these instruments.

(i) Fair Value hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial statements that
are (a) recognized and measured at fair value and (b) measured at amortised cost. To provide an indication about the

Level 1: Level 1 hierarchy included financial instruments measured using quoted prices. This included listed equity
instruments and mutual funds that have quoted price. The fair value of all equity instruments which are traded in the stock
exchanges is valued using the closing price as at the reporting period. 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 are determined using valuation
techniques which maximize the use of observable market data. 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.

NOTE 51: CAPITAL MANAGEMENT AND ACCOUNTING RATIOS

A) CAPITAL MANAGEMENT

The Company manages its capital to ensure that it will be able to continue as going concern while maximizing the
returns to stakeholders through optimisation of debt and equity ratios.

The Company determines the amount of capital required on the basis of annual budgets and three years corporate plan
for working capital, capital outlay and long-term strategies. The funding requirements are met through internal accruals
and a combination of long-term and short-term borrowings.

The Company monitors the capital structure on the basis of total debt to equity and maturity profile of the overall debt
portfolio of the Company.

NOTE 53:

The Company does not have any transactions not recorded in books of accounts that has been surrendered or disclosed as
income during the year and previous year in the tax assessments under the Income Tax Act, 1961.

NOTE 54:

The Company has not traded or invested in any crypto currency or virtual currency during the year and previous year.