o. Provisions, contingent liabilities and contingent
assets

A provision is recognised if, as a result of a past event,
the Company has a present legal or constructive
obligation that can be estimated reliably, and it is
probable that an outflow of economic benefits will
be required to settle the obligation. Provisions are
determined by discounting the expected future
obligation at pre-tax rate that reflects current market
assessments of the time value of money risks specific
to liability. They are not discounted where they are
assessed as current in nature. Provisions are not made
for future operating losses.

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 with in 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 or reliable estimate
of the amount cannot be made. Therefore, in order to
determine the amount to be recognised as a liability or
to be disclosed as a contingent liability, in each case, is
inherently subjective, and needs careful evaluation and
judgement to be applied by the management. In case
of provision for litigations, the judgements involved are
with respect to the potential exposure of each litigation
and the likelihood and/or timing of cash outflows from
the Company, and requires interpretation of laws and
past legal rulings.

Contingent assets are not recognised but disclosed in
the financial statements when an inflow of economic
benefits is probable.

p. Deferred tax

Deferred tax is recognised in respect of temporary
differences between the carrying amounts of assets
and liabilities for financial reporting purposes and the
corresponding amounts used for taxation purposes.
Deferred tax is also recognised in respect of carried
forward tax losses and tax credits.

Deferred tax assets are recognised to the extent that it
is probable that future taxable profits will be available
against which they can be used. The existence of unused
tax losses is strong evidence that future taxable profit
may not be available. Therefore, in case of a history of
recent losses, the Company recognises a deferred tax
asset only to the extent that it has sufficient taxable
temporary differences or there is convincing other
evidence that sufficient taxable profit will be available
against which such deferred tax asset can be realised.

The Company's ability to recover the deferred tax
assets is assessed by the management at the close of
each financial year which depends upon the forecasts
of the future results and taxable profits that Company
expects to earn within the period by which such brought
forward losses may be adjusted against the taxable
profits as governed by the Income-tax Act, 1961.
Deferred tax assets - unrecognised or recognised, are
reviewed at each reporting date and are recognised/
reduced to the extent that it is probable/ no longer
probable respectively that the related tax benefit will
be realised.

Deferred tax is measured at the tax rates that are
expected to apply to the period when the asset is
realised or the liability is settled, based on the laws

that have been enacted or substantively enacted by
the reporting date. The measurement of deferred tax
reflects the tax consequences that would follow from
the manner in which the Company expects, at the
reporting date, to recover or settle the carrying amount
of its assets and liabilities.

Deferred tax assets and liabilities are offset if there is a
legally enforceable right to offset deferred tax liabilities
and assets, and they relate to income taxes levied by
the same tax authority on the same taxable entity,
or on different tax entities, but they intend to settle
deferred tax liabilities and assets on a net basis or their
tax assets and liabilities will be realised simultaneously.

q. investment in subsidiaries

The Company has elected to recognize its investments
in subsidiaries at cost in accordance with the
option available in Ind AS 27, 'Separate Financial
Statements', less accumulated impairment loss, if any.
Cost represents amount paid for acquisition of the
said investments.

The Company has elected to continue with the
carrying value for all of its investments in subsidiaries
as recognised in the financial statements. On disposal
of an investment, the difference between the net
disposal proceeds and the carrying amount is charged
or credited to profit or loss. Investment in equity shares
of subsidiaries are carried at cost.

r. Measurement of profit before depreciation
and amortisation expense, finance costs and
foreign exchange fluctuation

The Company have elected to present profit before
depreciation and amortisation expense, finance costs
and foreign exchange fluctuation as a separate line
item on the face of the statement of Profit and Loss.

I n the measurement, the Company includes interest
income but does not include depreciation and
amortization expense, finance costs, foreign exchange
fluctuation, exceptional item and tax expense.

s. Amendment to Accounting Standards (ind AS)
issued but not yet effective

Ministry of Corporate Affairs ("MCA") notifies new
standard or amendments to the existing standards
under Companies (Indian Accounting Standards) Rules
as issued from time to time. During the year ended 31^st
March, 2025 MCA has not notified any new standards
or amendments to the existing standards applicable to
the Company.

Nature of reserves
Capital reserve

Capital reserve comprises of money received against forfeiture of equity shares and preference share warrants. The reserve is not
available for distribution as dividend. The reserve can be utilised in accordance with the specific provisions of Companies Act, 2013.

Securities premium:

Securities premium comprises of the premium on issue of shares. The reserve can be utilised in accordance with the specific provision
of the Companies Act, 2013.

General reserve

General reserve is a free reserve and is utilised from time to time for appropriate purposes.

Retained earnings

Retained earnings refer to the net profit/(loss) retained by the Company for its core business activities.

Other comprehensive income

Other comprehensive income comprise of re-measurement of defined benefit liability.

Indo Rama Synthetics (India) Limited

I v w IC3 to the Standalone financial statements

Summary of material accounting policy information and other explanatory information for the year ended 31 March 2025

(All amounts in H crores, unless stated otherwise)

27. Cost of materials consumed

* Includes other incidental costs
Notes:

1. The costs that are directly attributable to the acquisition or construction of property, plant and equipment has been capitalised during the year,
refer note 46

2. Refer note 44 for related party disclosures.

28. Purchase of stock in trade

Notes:

1. Refer note 44 for related party disclosures.

29. Changes in inventories of finished goods, work-in-progress and stock-in-trade

30. Employee benefits expense

Notes:

1. The costs that are directly attributable to the acquisition or construction of property , plant and equipment, has been capitalised during the year, refer note 46.

2. Refer note 44 for related party disclosures.

Innovating for Customer-Centric Growth

Notes:

1. Bank balances other than cash and cash equivalents exclude earmarked balance and unclaimed dividend.

2. Other current assets includes all other current assets except prepaid expense.

3. Property, plant and equipment excludes assets amounting to H 2.86 crores ( March 31, 2024: H 160.35 crores ) as provided under schedule IV of the
Memorandum of Entry dated December 14 2020 and those provided under schedule III of the Memorandum of Entry dated May 06 2021 executed in favor
of banks by the Company.

4. Other non-current assets includes only capital advances for the purpose of assets under charge.

38. Employee benefits
a) Defined contribution plan

An amount of H 5.74 crores [March 31 2024: H 5.88 crores] for the year has been recognised as an expense in respect of the Company's
contributions towards Provident Fund, an amount of H 0.03 crores [March 31 2024: H 0.09 crores] for the year has been recognised as an
expense in respect of Company's contributions towards Employee State Insurance and an amount of H 0.28 crores [March 31 2024: H 0.33
crores] for the year has been recognised as an expense in respect of the Company's contributions towards National Pension Scheme,
which are deposited with the government authorities and have been included under employee benefit expenses in the Statement of
Profit and Loss.

These assumptions were developed by management with the assistance of independent actuarial appraisers. Discount factors are
determined close to each year end by reference to government bonds of relevant economic markets and that have terms to maturity
approximating to the terms of the related obligation. Other assumptions are based on management's historical experience.

The above defined benefit plan exposes the Company to following risks:

Interest rate risk:

The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields fall, the defined benefit
obligation will tend to increase.

Salary inflation risk:

Expected increases in salary will increase the defined benefit obligation.

Demographic risk:

This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal, disability and
retirement. The effect of these decrements on the defined benefit obligation is not straight forward and depends upon the combination
of salary increase, discount rate and vesting criteria. It is important not to overstate withdrawals because in the financial analysis the
retirement benefit of a short career employee typically costs less per year as compared to a long service employee.

Funding

This is an unfunded benefit plan for qualifying employees.

(vi) Sensitivity analysis for gratuity liability

The below sensitivity analyses are 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 methods (present value of defined benefit obligation calculated with the
projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability
recognised in the balance sheet.

40. Segment information
Basis of segmentation:

The Company's primary business segment is reflected based on principal business activities carried on by the Company. Chairman and
Managing Director has been identified as being the Chief Operating Decision Maker ('CODM') and evaluates the Company's performance
and allocates resources based on analysis of the various performance indicators of the Company as a single unit. As per Indian Accounting
Standard 108, Operating Segments, as notified under the Companies (Indian Accounting Standards) Rules 2015, the Company operates
in one reportable business segment i.e., manufacturing and trading of polyester goods.

Geographical information:

The geographical information analyses the Company's revenue and trade receivables from such revenue in India and other countries.
In presenting the geographical information, segment revenue and receivables has been based on the geographic location of customers.

*Fair value through profit and loss

#Fair value through other comprehensive income

Notes:

1. The amortised cost of all financial assets and liabilities approximate to the fair values on the respective reporting dates.

2. There have been no transfers between Level 1, Level 2 and Level 3 for the years ended March 31 2025 and March 31 2024.

3. Investment in equity shares of subsidiaries, carried at cost have not been disclosed in the statement above.

B. Financial risk management

The Company has exposure to the following risks arising from financial instruments:

• credit risk

• liquidity risk

• market risk

(i) Risk management framework

The Company's board of directors has overall responsibility for the establishment and oversight of the Company's risk management
framework. The board of directors has established the risk management committee, which is responsible for developing and monitoring
the Company's risk management policies. The committee reports regularly to the board of directors on its activities.

The Company's risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk
limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect
changes in market conditions and the Company's activities.

The Company's risk committee oversees how management monitors compliance with the Company's risk management policies and
procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The audit
committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad hoc reviews of risk management
controls and procedures, the results of which are reported to the audit committee.

(ii) Credit risk

The Company assesses and manages credit risk of financial assets based on following categories arrived on the basis of assumptions,
inputs and factors specific to the class of financial assets.

A: Low credit risk on financial reporting date

B: Moderate credit risk

The credit risk for cash and cash equivalents and other bank balances is considered negligible, since the counterparties are reputable
banks with high quality external credit ratings. Loan is given to subsidiaries. Accordingly, credit risk for loan is considered negligible. The
credit risk for claims and receivables is considered negligible, since the counterparties are Government bodies.

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual
obligations and arises principally from the Company's receivables from customers.

The carrying amounts of financial assets represent the maximum credit risk exposure.

Trade receivables

The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management
also considers the factors that may influence the credit risk of its customer base, including the default risk associated with the industry
and country in which customers operate. The Company's significant payment terms range from 30 days to 90 days.

The Company limits its exposure to credit risk from trade receivables by establishing a credit period for all customer categories. In case
of delay beyond credit period, the interest is generally recovered at the rate of 12% to 18%. Most of the Company's customers have
been transacting with the Company from past few years, and most of these customers' balances are not credit-impaired at the reporting
date except in few cases reported. Identifying concentrations of credit risk requires judgement in the light of specific circumstances.
The Company monitors ageing of its trade receivables regularly and based on the same takes corrective action. Trade receivables having
ageing more than 180 days is monitored individually and loss allowance is created based on such assessment.

(iii) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that
are settled by delivering cash or another financial asset. The Company's approach to managing liquidity is to ensure, as far as possible,
that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring
unacceptable losses or risking damage to the Company's reputation. The Company uses activity-based costing to cost its products, which
assists it in monitoring cash flow requirements and optimising its cash return on investments.

The Company has secured bank loans that contains certain loan covenants. A future breach of covenant may require the Company to
repay the loan earlier than indicated in the above table. Covenants are monitored on regular basis by the treasury department and
regularly reported to management to ensure compliance with the agreement. Further, there have been no default in repayment of loan
and borrowing in the current year. During the last year, there has been breach of covenants for two banks. However, the lender has
granted the waiver for covenant breach to the Company before the approval of financial statements for issue. During the current year,
financial covenants are not applicable on the loans undertaken by the Company.

(iv) Market risk

Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and commodity 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 optimising the return.

Commodity price risk

Commodity price risk arises due to fluctuation in prices of crude oil. The Company has a risk management framework aimed at prudently
managing the risk arising from the volatility in commodity prices and freight costs. The Company's commodity risk is managed centrally
through well-established control processes. In accordance with the risk management policy, the Company enters into various transactions
using derivatives to hedge its exposure, as and when required. Further, selling price of finished goods and cost of raw materials fluctuates
due to fluctuation in prices of crude oil and Company expects that the net impact of such fluctation would not be material.

Currency risk

The Company is exposed to currency risk to the extent that there is a mismatch between the currencies in which sales, purchases and
borrowings are denominated. The currencies in which these transactions are primarily denominated are US dollars, Japanese Yen and
Euro. The Company uses forward exchange contracts to hedge its currency risk, most with a maturity of less than one year from the
reporting date, as and when required.

Lease payments not recognised as a liability

The Company has elected not to recognise a lease liability for short-term leases (leases with an expected term of 12 months or less) or
for leases of low value assets. Payments made under such leases are expensed on a straight-line basis. The Company does not have any
liability to make variable lease payments for the right-to-use the underlying asset recognised in the financials.

The expense relating to payments not included in the measurement of the lease liability for short-term leases and leases of low value is
H 12.40 crores (March 31 2024: H 14.71 crores).

At March 31 2025, the Company was committed to short term-leases and leases of low value, and the total commitment as at that date
was H3.19 crores (March 31 2024: H 8.09 crores).

Total cash outflow for short term-leases and leases of low value for the year ended March 31 2025 was H 12.40 crores (March 31 2024:
H 14.71 crores).

Total cash outflow for leases for the year ended March 31 2025 was H 16.76 crores (March 31 2024: H 18.90 crores).

43. Particulars of investments made and loans given as required by clause (4) of Section 186 of the Companies Act, 2013 and as required
by Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 has been given under the
investment schedule. Refer note 6(a) and note 7.

*Includes contribution to provident and other funds H Nil ( March 2024: H 0.14 crores)

**Finance costs is capitalised in accordance with Ind AS 23, Borrowing Costs. Refer note 18(3)(iii) and (iv) for borrowing cost rate used to determine the amount
of finance cost.

# Includes H Nil ( March 2024: H 1.46 crore) allocated towards assets under construction/ capital work-in-progress. Hence, amount carried forward to next financial
year as part of capital-work in progress is H Nil (March 2024: H 6.06 crore)

47. The Company carries an amount of H 258.61 crore as deferred tax assets (net) as at March 31 2025 as detailed in Note 9. The
management of the Company is confident of generating sufficient taxable profits to realise aforesaid deferred tax assets based on future
business projections which is supported by ongoing capacity expansion through Debottlenecking of the existing plants and favourable
industry focussed trade policies of the Government that are expected to enhance the operations and profitability of the Company.

48. The current liabilities of the Company exceed its current assets by H 612.49 Crore as at March 31 2025. However, considering the
future business projections supported by capacity expansion through de-bottlenecking of the existing plants during the previous year,
favourable industry focused trade policies of the government and sufficient existing and expected credit facilities with the Company
from the bankers, the management believes that the Company will be able to realize its assets and will be able to meet its liabilities in
the normal course of business.

49. Per transfer pricing legislation under section 92-92F of the Income-tax Act 1961, the Company is required to use certain
specific methods in computing arm's length price of international transactions with associated enterprises and maintains adequate
documentation in this respect. The legislations require that such information and documentation to be contemporaneous in nature. The
Company has appointed independent consultants for conducting the Transfer Pricing Study to determine whether the transactions with
associated enterprises undertake during the financial year are on an "arm's length basis". The Company is in the process of conducting a
transfer pricing study for the current financial year and expects such records to be in existence latest by the due date as required by law.
However, in the opinion of the management the update would not have a material impact on these financial statements. Accordingly,
these standalone financial statements do not include any adjustments for the transfer pricing implications, if any.

Reasons for variance

1 Increase in net profit in the current year in comparision to previous year resulting in improvement of ratio

2 I ncrease in business activity (increase in sales and corresponding net purchases) in comparision to previous year and reduction in
capital employed has resulted in improvement of ratio

Notes:

(i) Current ratio = Current assets/ current liabilities

(ii) Debt equity ratio = Total debt/ shareholders equity

(iii) Debt service coverage ratio = Earnings available for debt service/ debt service (refer point (A) below)

(iv) Return on equity ratio = Net profits after taxes - preference dividend (if any)/ average shareholder's equity

(v) Inventory turnover ratio = sales (excluding other operating income) /average inventory

(vi) Trade receivables turnover ratio = net credit sales/ avg. accounts receivable

(vii) Trade payables turnover ratio = Net credit purchases (comprise of purchase of raw materials stores & spares packing materials)
/ average trade payables

(viii) Net capital turnover ratio = net sales/ working capital

(ix) Net profit ratio= net profit/ net sales

(x) Return on capital employed (ROCE)= earning before interest and taxes/ capital employed (refer point (B) below)

(xi) 4Return on investment= income received from investments/ average investments. No income has been received on investment in

the year ended March 31 2025 and March 31 2024 hence reported as nil.

Other explanatory points

(A) Earning for debt service = net profit after taxes non-cash operating expenses like depreciation and other amortizations Interest
other adjustments like loss on sale of property, plant & equipment etc.

Debt service = interest & lease payments principal repayments "Net profit after tax" means reported amount of "profit / (loss)
for the period" and it does not include items of other comprehensive income.

(B) Capital employed = tangible net worth total debt deferred tax liability (asset)

51. Other statutory information

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

(b) The Company do not have any transactions with companies struck off.

(c) The Company do not have any charges or satisfaction which is yet to be registered with Registrar of Companies 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 to any other person(s) or entity(ies), including foreign entities
(Intermediaries) with the understanding 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) The Company have not any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed
as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant
provisions of the Income Tax Act, 1961

(h) The Company is not declared wilful defaulter by any bank or financial institution or government or any government authority.

(i) The Company has been sanctioned a working capital limit by banks or financial institutions on the basis of security of current assets.
Pursuant to the terms of the sanction letter(s),the Company is not required to file any quarterly return or statement with such
banks or financial institutions.

52. The Ministry of Corporate Affairs (MCA) has prescribed a new requirement for companies under the proviso to Rule 3(1) of the
Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules 2021 requiring companies, which uses
accounting software for maintaining its books of account, shall use only such accounting software which has a feature of recording audit
trail of each and every transaction, creating an edit log of each change made in the books of account along with the date when such
changes were made and ensuring that the audit trail cannot be disabled.

The Company uses an accounting software for maintaining its books of account which has a feature of recording audit trail (edit log)
facility and the same has operated throughout the year for all relevant transactions recorded in the accounting software. However, the
audit trail feature is not enabled at database level for accounting software to log any direct data changes for users with certain privileged
access rights. Further there is no instance of audit trail feature being tampered with in respect of the accounting software where
such feature is enabled. Additionally, the audit trail has been preserved at the application level by the Company as per the statutory
requirements for record retention.

Presently, the log is enabled at the application level and the privileged access to accounting software database continues to be restricted
to limited set of users who necessarily require this access for maintenance and administration of the database.

This is the summary of material accounting policy information and other explanatory information referred to in our report of even date

For Walker Chandiok & Co LLP For and on behalf of the Board of Directors of

Chartered Accountants Indo Rama Synthetics (India) Limited

Firm's Registration No.: 001076N/N500013

Kartik Gogia Om Prakash Lohia Dhanendra Kumar Vishal Lohia

Partner Chairman and Managing Director Director Executive Director

Membership No.: 512371 DIN: 00206807 DIN: 05019411 DIN: 00206458

Place: Gurugram Place: Gurugram Place: New Delhi Place: Gurugram

Date: May 13 2025 Date: May 13 2025 Date: May 13 2025 Date: May 13 2025

Manish Kumar Rai Umesh Kumar Agrawal

Company Secretary Chief Commercial and Financial Officer

Place: Gurugram Place: Gurugram

Date: May 13 2025 Date: May 13 2025