p) Provisions, Contingent Liabilities and Contingent Asset
Provisions

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result
of past events and it is probable that there will be an outflow of resources embodying economic benefits in respect of which a
reliable estimate can be made.

Provisions are discounted, if the effect of the time value of money is material, using pre-tax rates that reflects the risks specific to
the liability. When discounting is used, an increase in the provisions due to the passage of time is recognised as finance cost. These
provisions are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates.

Necessary provision for doubtful debts, claims, etc., are made if realisation of money is doubtful in the judgement of the management.
Contingent liability

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence
or non-occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not
recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability
also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably.
Contingent liabilities are disclosed separately.

Show cause notices issued by various Government authorities are considered for evaluation of contingent liabilities only when
converted into demand.

Contingent assets

Where an inflow of economic benefits is probable, the Company discloses a brief description of the nature of the contingent assets
at the end of the reporting period, and, where practicable, an estimate of their financial effect. Contingent assets are disclosed but
not recognised in the financial statements.

q) Cash and cash equivalents

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances with original maturity of
less than 3 months, highly liquid investments that are readily convertible into cash, which are subject to insignificant risk of changes
in value.

r) Cash Flow Statement

Cash flows are presented using indirect method, whereby profit / (loss) before tax is adjusted for the effects of transactions of non¬
cash nature and any deferrals or accruals of past or future cash receipts or payments.

Bank borrowings are generally considered to be financing activities. However, where bank overdrafts which are repayable on
demand form an integral part of an entity’s cash management, bank overdrafts are included as a component of cash and cash
equivalents for the purpose of Cash flow statement.

s) Earnings per share

The basic earnings per share are computed by dividing the net profit for the period attributable to equity shareholders by the
weighted average number of equity shares outstanding during the period.

Diluted EPS is computed by dividing the net profit after tax by the weighted average number of equity shares considered for deriving
basic EPS and also weighted average number of equity shares that could have been issued upon conversion of all dilutive potential
equity shares. Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later
date. Dilutive potential equity shares are determined independently for each period presented. The number of equity shares and
potentially dilutive equity shares are adjusted for bonus shares, as appropriate.

4 RECENT ACCOUNTING PRONOUNCEMENTS

A New Standards/Amendments notified but not yet effective:

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. During the year ended March 31, 2025, MCA has not notified any new
standards or amendments to the existing standards applicable to the Company.

B Changes in material accounting policies
Material accounting policy information

The Company adopted Disclosure of Accounting Policies (Amendments to Ind AS 1) from 1 April 2023. Although the amendments
did not result in any changes in the accounting policies themselves, they impacted the accounting policy information disclosed in the
financial statements.

The amendments require the disclosure of ‘material’ rather than ‘significant’ accounting policies. The amendments also provide guidance
on the application of materiality to disclosure of accounting policies, assisting entities to provide useful, entity-specific accounting policy
information that users need to understand other information in the financial statements.

Recent IND-AS pronouncements:

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 31,2025, MCA has notified Ind AS - 117 Insurance Contracts and amendments to Ind AS 116 - Leases,
relating to sale and leaseback transactions, applicable to the Company w.e.f. April 1,2024.

The Company has reviewed the new pronouncements and based on its evaluation has determined that it does not have any significant
impact in its financial statements.

50 Financial Instruments
Capital management

The Company manages its capital to ensure that entities in the Company will be able to continue as going concern, while maximising
the return to stakeholders through the optimisation of the debt and equity balance. The Company determines the amount of capital
required on the basis of annual operating plans and long-term product and other strategic investment plans. The funding requirements
are met through equity, long-term borrowings and other short-term borrowings.

For the purposes of the Company’s capital management, capital includes issued capital, share premium and all other equity reserves
attributable to the equity holders.

The treasury function provides services to the business, co-ordinates access to domestic and international financial markets, monitors and
manages the financial risks relating to the operations through internal risk reports which analyse exposures by degree and magnitude of risks.
These risks include market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

The Company seeks to minimise the effects of these risks by using natural hedging financial instruments and forward contracts to hedge risk
exposures. The use of financial derivatives is governed by the Company’s policies approved by the board of directors, which provide written
principles on foreign exchange risk, the use of financial derivatives, and the investment of excess liquidity. The Company does not enter into
or trade financial instruments, including derivative financial instruments, for speculative purposes.

Market risk

Market risk is the risk of any loss in future earnings, in realizable fair values or in future cash flows that may result from a change in the price
of a financial instrument. The Company’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates
and interest rates. The Company actively manages its currency and interest rate exposures through its finance division and uses derivative
instruments such as forward contracts and currency swaps, wherever required, to mitigate the risks from such exposures. The use of
derivative instruments is subject to limits and regular monitoring by appropriate levels of management.

Foreign currency risk management

The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise. The
Company actively manages its currency rate exposures through a centralised treasury division and uses natural hedging principles to mitigate
the risks from such exposures. The use of derivative instruments, if any, is subject to limits and regular monitoring by appropriate levels of
management.

Foreign currency sensitivity analysis

Movement in the functional currencies of the various operations of the Company against major foreign currencies may impact the Company’s
revenues from its operations. Any weakening of the functional currency may impact the Company’s cost of imports and cost of borrowings
and consequently may increase the cost of financing the Company’s capital expenditures. The foreign exchange rate sensitivity is calculated
for each currency by aggregation of the net foreign exchange rate exposure of a currency and a simultaneous parallel foreign exchange rates
shift in the foreign exchange rates of each currency by 2%, which represents management’s assessment of the reasonably possible change
in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their
translation at the period end for a 2% change in foreign currency rates.

In management’s opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange risk because the exposure at the end
of the reporting period does not reflect the exposure during the year.

Interest rate risk management

The Company is exposed to interest rate risk because it borrow funds at both fixed and floating interest rates. The risk is managed by the
Company by maintaining an appropriate mix between fixed and floating rate borrowings and by the use of interest rate swap contracts.
Hedging activities are evaluated regularly to align with interest rate views and defined risk appetite, ensuring the most cost-effective hedging
strategies are applied. Further, in appropriate cases, the Company also effects changes in the borrowing arrangements to convert floating

interest rates to fixed interest rates.

Interest rate sensitivity analysis

The sensitivity analyses below have been determined based on the exposure to interest rates for both derivatives and non-derivative
instruments at the end of the reporting period. For floating rate liabilities, the analysis is prepared assuming the amount of the liability
outstanding at the end of the reporting period was outstanding for the whole year, a 25 basis point increase or decrease is used when
reporting interest rate risk internally to key management personnel and represents management's assessment of the reasonably possible
change in interest rates.

The 25 basis point interest rate changes will impact the profitability by INR 3.99 million for the year (Previous INR 3.84 million)

Credit risk management

Credit risk arises when a customer or counterparty does not meet its obligations under a customer contract or financial instrument, leading to
a financial loss. The Company is exposed to credit risk from its operating activities primarily trade receivables and from its financing/ investing
activities, including deposits with banks and foreign exchange transactions. The Company has no significant concentration of credit risk with
any counterparty.

Exposure to credit risk

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure is the total of the carrying
amount of balances with banks, short term deposits with banks, trade receivables, margin money and other financial assets excluding equity
investments.

(a) Trade Receivables

Trade receivables are consisting of a large number of customers. The Company has credit evaluation policy for each customer and,
based on the evaluation, credit limit of each customer is defined. Wherever the Company assesses the credit risk as high, the exposure
is backed by either bank, guarantee/letter of credit or security deposits.

The Company does not have higher concentration of credit risks to a single customer. As per simplified approach, the Company makes
provision of expected credit losses on trade receivables using a provision matrix to mitigate the risk of default in payments and makes
appropriate provision at each reporting date wherever outstanding is for longer period and involves higher risk.

(b) Investments, Derivative Instruments, Cash and Cash Equivalents and Bank deposits

Credit Risk on cash and cash equivalents, deposits with the banks/financial institutions is generally low as the said deposits have been
made with the banks/financial institutions, who have been assigned high credit rating by international and domestic rating agencies.

Credit Risk on Derivative Instruments is generally low as the Company enters into the derivative contracts with the reputed Banks.

There is no major Investments made by the Company and accordingly is not prone to any major investment risk.

Offsetting related disclosures

Offsetting of cash and cash equivalents to borrowings as per the consortium agreement is available only to the bank in the event of a default.
Company does not have the right to offset in case of the counter party's bankruptcy, therefore, these disclosures are not required.

Liquidity risk management

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain
sufficient liquidity and ensure that funds are available for use as per requirements. The Company invests its surplus funds in bank fixed
deposit and mutual funds, which carry minimal mark to market risks. The Company also constantly monitors funding options available in the
debt and capital markets with a view to maintaining financial flexibility.

Liquidity tables

The following tables detail the Company's remaining contractual maturity for its non-derivative financial liabilities with agreed repayment
periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the
Company can be required to pay.

52 Details of Borrowings and Assets pledged as Security: Non-current financial liabilities - Borrowings

Terms and conditions of loans taken from banks and Non-Banking financial institutions

(I) Rupee term loan availed from Axis Bank Ltd: (Total Outstanding: ' 61.83 million)

a) Working Capital Term Loan, I carries interest @ 9.25% pa., The loan is repayable in 31 months. The loan matures in February,
2026. The Rupee term loan is secured by Hypothecation on entire movable fixed assets of the borrower pertaining to the
specific reclaim project (acquired out of EXIM Bank finance and taken over by Axis Bank) on exclusive basis. Further this loan
is secured by way of exclusive charge basis on the Company’s specific immovable properties and Hypothecation of entire
current assets of the borrower, both present and future on first Pari passu basis other working capital lenders

b) Working Capital Term Loan, II carries interest @ 9.25% pa., The loan is repayable in 62 months. The loan matures in October,
2028. The Rupee term loan is secured by Hypothecation on entire movable fixed assets of the borrower pertaining to the
specific reclaim project (acquired out of EXIM Bank finance and taken over by Axis Bank), on exclusive basis. Further this loan
is secured by way of exclusive charge basis on the Company’s specific immovable properties and Hypothecation of entire
current assets of the borrower, both present and future on first Pari passu basis with other working capital lenders

c) Term loan carries interest @ 9.25% pa., The loan is repayable in 23 monthly instalments. The loan matures in July, 2025. The
Rupee term loan is secured by Hypothecation on entire movable fixed assets of the borrower pertaining to the specific reclaim
project (acquired out of EXIM Bank finance and taken over by Axis Bank), on exclusive basis. Further this loan is secured by
way of exclusive charge basis on the Company’s specific immovable properties.

(II) Foreign Currency term loan availed from Axis Bank Ltd: (Total Outstanding: ' 3.57 million)

a) Foreign Currency Term loan carries interest @ 5.18% pa., The loan is repayable on 20 monthly instalments. The loan matures
in April, 2025. This term loan is secured by Hypothecation on entire movable fixed assets of the borrower pertaining to the
specific reclaim project (acquired out of EXIM Bank finance and taken over by Axis Bank), on exclusive basis. Further this loan
is secured by way of exclusive charge basis on the Company’s specific immovable properties.

(III) Rupee term loan availed from HDFC Bank Ltd: (Total Outstanding: ' 48.94 million)

a) Working Capital Term Loan under Guaranteed Emergency Credit Line (GECL) carries interest @ 9.25% pa., The loan is
repayable in 60 months. The loan matures in November, 2026. This loan under GECL is secured by extension of second
ranking charge over existing primary and collateral securities including mortgages created in favor of the bank.

b) Working Capital Term Loan under Guaranteed Emergency Credit Line (GECL) carries interest @ 9.25% pa., The loan
is repayable in 48 months. The loan matures in July, 2028. This loan under GECL is secured by extension of second
ranking charge over existing primary and collateral securities including mortgages created in favor of the bank.

c) Commercial vehicle loan carries interest @ 9.00% pa., The loan is repayable in 60 months. The loan matures in March,
2029. This loan is secured by hypothecation of vehicle.

(IV) Rupee term loan availed from CSB Bank Ltd: (Total Outstanding: ' 300.00 million)

a) Carries interest @ 10.35% pa., The loan is repayable on 60 monthly instalments. The loan matures in March,2028. The
term loan availed is secured by way of exclusive hypothecation charge on fixed assets (both present and future) of the
Company acquired out of bank’s finance for the specific project (reclaim). Further it is also secured by exclusive charge
over specific immovable properties of the Company

(V) Rupee term loan availed from Federal Bank Ltd: (Total Outstanding: ' 286.94 million)

a) Working capital term loan carries interest @ 9.00% pa., The loan is repayable on 48 months instalments. The loan
matures in July, 2028. The loan is secured by exclusive charge on pledge of specific investments (equity shares) of the
Company. Further, it is secured by Pari passu charge on the company’s specific immovable property along with RBL
Bank Ltd. Also, secured by second charge on the primary securities on all movable and immovable assets created out of
the WCTL.

b) Working capital term loans carries interest @ 8.75% pa. The loan is repayable on 31 months instalments. The loan
matures in February, 2027. The loan is secured by exclusive charge on pledge of specific investments (equity shares) of
the Company. Further, it is secured by Pari passu charge on the company’s specific immovable property along with RBL
Bank Ltd. Also, secured by second charge on the primary securities on all movable and immovable assets created out of
the WCTL.

c) Working capital term loans carries interest @ 8.75% pa. The loan is repayable on 16 months instalments. The loan
matures in December, 2025. The loan is secured by exclusive charge on pledge of specific investments (equity shares)
of the Company. Further, it is secured by Pari passu charge on the company’s specific immovable property along with
RBL Bank Ltd. Also, secured by second charge on the primary securities on all movable and immovable assets created
out of the WCTL

d) Working capital term loans carries interest @ 8.75% pa. The loan is repayable on 40 months instalments. The loan
matures in March, 2027. The loan is secured by exclusive charge on pledge of specific investments (equity shares) of
the Company. Further, it is secured by Pari passu charge on the company’s specific immovable property along with RBL
Bank Ltd. Also, secured by second charge on the primary securities on all movable and immovable assets created out of
the WCTL

e) Working capital term loans carries interest @ 8.75% pa. The loan is repayable on 38 months instalments. The loan
matures in May, 2027. The loan is secured by exclusive charge on pledge of specific investments (equity shares) of the
Company. Further, it is secured by Pari passu charge on the company’s specific immovable property along with RBL
Bank Ltd. Also, secured by second charge on the primary securities on all movable and immovable assets created out of
the WCTL

f) Working capital term loans carries interest @ 8.75% pa. The loan is repayable on 21 months instalments. The loan
matures in June, 2026. The loan is secured by exclusive charge on pledge of specific investments (equity shares) of the
Company. Further, it is secured by Pari passu charge on the company’s specific immovable property along with RBL
Bank Ltd. Also, secured by second charge on the primary securities on all movable and immovable assets created out of
the WCTL

g) Working capital term loans carries interest @ 8.75% pa. The loan is repayable on 28 months instalments. The loan
matures in November, 2026. The loan is secured by exclusive charge on pledge of specific investments (equity shares)
of the Company. Further, it is secured by Pari passu charge on the company’s specific immovable property along with
RBL Bank Ltd. Also, secured by second charge on the primary securities on all movable and immovable assets created
out of the WCTL

(VI) Rupee term loan availed from Tata Capital Ltd: (Total Outstanding: ' 139.97 million)

a) Term loan facility under Guaranteed Emergency Credit (GECL) carries interest @ 10.30% pa. The loan is repayable in
60 months. This loan is secured by way of second charge on specific immovable properties of the Company. The loan
originally matures in February, 2026 but foreclosed during April 25.

b) Term loan facility under Guaranteed Emergency Credit (GECL) carries interest @ 10.30% pa. The loan is repayable in
72 months. This loan is secured by way of second charge on specific immovable properties of the Company. The loan
originally matures in February, 2028 but foreclosed during April 25.

c) Term loan carries interest @ 10.30% pa., The loan is repayable on 60 monthly instalments. This loan is secured by way
of exclusive charge by way of equitable mortgage on specific immovable properties of the Company. The loan originally
matures in April, 2027 but foreclosed during May 25.

d) Term loan carries interest @ 10.30% pa., The loan is repayable on 36 monthly instalments. This loan is secured by
extension of mortgage over existing specific immovable properties of the Company. The loan originally matures in June,
2026 but foreclosed during April 25.

e) Term loan carries interest @ 10.30% pa., The loan is repayable on 36 monthly instalments. This loan is secured by
extension of mortgage over existing specific immovable properties of the Company. The loan originally matures in
February, 2027 but foreclosed during April 25.

f) Term loan carries interest @ 10.30% pa., The loan is repayable on 60 monthly instalments. The loan matures in
September, 2029. This loan is secured by extension of mortgage over existing specific immovable properties of the
Company.

Details of Borrowings and Assets pledged as Security: Current liabilities - Financial Liabilities: Borrowings

Terms and conditions of loans taken from banks and Non-Banking financial institutions

(I) HDFC Bank Ltd: (Total Outstanding: ' 344.85 million)

a) Cash Credit loan from HDFC Bank Ltd carries an interest rate @ 8.75 % p.a and is repayable on demand.

b) The packing credit loans from HDFC Bank Ltd are repayable within 180 days from the date of borrowing. The borrowings

carry an interest rate linked to Repo rate/T-bills plus agreed spread after reduction of eligible interest subsidy under
Interest Equalization Scheme of Reserve Bank of India.

c) Demand loan from HDFC Bank Ltd carries an interest rate @ 8.75% p.a. and is repayable on demand.

d) Buyers Credit Foreign Currency loan from HDFC Bank Ltd carries an interest rate linked to TERM SOFR/EURIBOR plus

agreed spread. These loans are repayable within 180 days from the date of borrowing.

e) The above credit facilities are secured by exclusive charge over specific immovable properties of the Company and
also charge by way of hypothecation of all stock in trade and book debts on Pari passu basis with other working capital
lenders. It has also secured by first charge over plant and machinery other than those exclusively charged for other term
loan lenders.

(II) Federal Bank Ltd: (Total Outstanding: ' 98.18 million)

a) Working capital demand loan from Federal Bank Ltd carries an interest rate @ 9.25% p.a. and is repayable on demand
and secured by way of Pari passu charge on the entire current assets of the Company with other working capital lenders.
The loan is secured by exclusive charge on pledge of specific investments (equity shares) of the Company. Further, it is
secured by Pari passu charge on the company’s specific immovable property along with RBL Bank Ltd.

b) The overdraft facility is secured with cash margin placed by way of fixed deposit.

(III) Axis Bank Ltd: (Total Outstanding: ' 96.77 million)

a) The cash credit facility from Axis Bank Ltd carries an interest rate @ 9.25 % p.a. The facility is repayable on demand and

is secured by Hypothecation of entire current assets of the borrower, both present and future on first Pari passu basis
with other working capital lenders. Further it is also secured by exclusive charge over specific immovable properties of
the Company.

(IV) CSB Bank Ltd: (Total Outstanding: ' 46.61 million)

a) The cash credit facility from CSB Bank Ltd carries an interest rate @ 10.05 % p.a. The facility is repayable on demand

and is secured by Pari passu first charge on the entire current assets of the Company, both present and future along with

the other existing lenders under MBA. Further it is also secured by exclusive charge over specific immovable properties
of the Company.

54. Retirement benefit plans
Defined contribution plans

In accordance with Indian law, eligible employees of the Company are entitled to receive benefits in respect of provident fund, a defined
contribution plan, in which both employees and the Company make monthly contributions at a specified percentage of the covered
employees' salary. The contributions, as specified under the law, are made to the Provident Fund.

The total (income) / expense recognised in profit or loss of Rs.5.77 million (for the year ended March 31, 2024: Rs.11.24 million)
represents contribution paid to these plans by the Company at rates specified in the rules of the plan.

Defined benefit plans

(a) Leave obligations

The leave obligations cover the company's liability for earned leave.

(b) Gratuity

Gratuity is payable as per Payment of Gratuity Act, 1972. In terms of the same, gratuity is computed by multiplying last drawn salary
(basic salary including dearness Allowance if any) by completed years of continuous service with part thereof in excess of six months
and again by 15/26. The Act provides for a vesting period of 5 years for withdrawal and retirement and a monetary ceiling on gratuity
payable to an employee on separation, as may be prescribed under the Payment of Gratuity Act, 1972, from time to time. However, in
cases where an enterprise has more favourable terms in this regard the same has been adopted.

56. OTHER STATUTORY INFORMATION

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

2. The Company has not traded or invested in Crypto currency or virtual currency during the financial year

3. The Company has not advanced or loaned or invested funds to any persons or entities, 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 on behalf of the Ultimate Beneficiaries

4. The Company has not received any fund from any persons or entities, 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.

5. 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 or any other relevant
provisions of the Income Tax Act, 1961).

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

7. The Company does 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.

8. The Company has not been declared willful defaulter by any bank or financial institution or government or any government authority.

57. Figures for the previous year have been regrouped/reclassified wherever necessary to conform to current period’s classification.

The accompanying notes form an integral part of the standalone financial statements.

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

Sudarsan Varadaraj Parvathi Srinivasasn SR Venkatachalam ^{For M/s ARUN} & ^CO

Chairman & Managing Director Director Chief Financial Officer ^{Chartered Accountants}

Din_{: 00133533} DIN: 10646746 Firm Registration No.0014464S

Faizur Rehman Allaudeen ^{A ARUN}

^Coimbatore Company Secretary Proprietor

^May 29, ²⁰²⁵ Membership No. A70055 Memberehip No. ²²7831