2.9. Provisions and Contingent Liabilities:

2.9.1. Provisions are recognized when there is 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;

2.9.2. The expenses relating to a provision is presented in the Statement of Profit and Loss net of reimbursements,
if any;

2.9.3. If the effect of the time value of money is material, provisions are discounted using a current pre-tax 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 a finance cost;

2.9.4. Contingent liabilities are possible obligations whose existence will only be confirmed by future events
not wholly within the control of the Company, or present obligations where it is not probable that an
outflow of resources will be required or the amount of the obligation cannot be measured with sufficient
reliability;

2.9.5. Contingent liabilities are not recognized in the financial statements but are disclosed unless the possibility
of an outflow of economic resources is considered remote.

2.10. Revenue Recognition:

2.10.1.Sale of goods:

Revenue is recognised upon transfer of control of promised goods to customers in an amount that reflects
the consideration which the Company expects to receive in exchange for those goods.

Revenue from the sale of goods is recognised at the point in time when control is transferred to the
customer which is usually on dispatch / delivery of goods, based on contracts with the customers. Export
sales are recognized on the issuance of Bill of Lading / Airway bill by the carrier. Revenue from sale of
power from wind operated generators is accounted when the same is transmitted to and confirmed by
the Electricity Board to whom the same is sold.

Revenue is measured based on the transaction price, which is the consideration, adjusted for discounts,
price concessions, incentives, and returns, if any, as specified in the contracts with the customers. Accruals
for discounts/incentives and returns are estimated (using the most likely method) based on accumulated
experience and underlying schemes and agreements with customers. Due to the short nature of credit
period given to customers, there is no financing component in the contract.

Revenue excludes taxes collected from customers on behalf of the government.

Contract Balances:Trade Receivables

A receivable represents the Company's right to an amount of consideration that is unconditional (i.e., only
the passage of time is required before payment of the consideration is due).

Contract liabilities

A contract liability is the obligation to transfer goods to a customer for which the Company has received
consideration (or an amount of consideration is due) from the customer. If a customer pays consideration
before the Company transfers goods or services to the customer, a contract liability is recognised when
the payment is made, or the payment is due (whichever is earlier). Contract liabilities are recognised as
revenue when the Company performs under the contract.

2.10.2. Rendering of Services

Revenue is recognized from rendering of services when the performance obligation is satisfied and the
services are rendered in accordance with the terms of customer contracts. Revenue is measured based
on the transaction price, which is the consideration, as specified in the contract with the customer;

Revenue from services is recognised over time by measuring progress towards satisfaction of performance
obligation for the services rendered;

Revenue excludes taxes collected from customers on behalf of the government.

2.10.3. Export incentives under various schemes notified by the Government have been recognised on the basis
of applicable regulations, and when reasonable assurance to receive such revenue is established;

2.10.4. Interest income is recognized using the effective interest rate (EIR) method;

2.10.5. Dividend income on investments is recognised when the right to receive dividend is established;

2.10.6. Insurance claims are accounted for on the basis of claims admitted / expected to be admitted and to
the extent that the amount recoverable can be measured reliably and it is reasonable to expect ultimate
collection.

2.11. Segment reporting:

The Company identifies operating segments based on the dominant source, nature of risks and returns
and the internal organisation. The operating segments are the segments for which separate financial
information is available and for which operating profit/loss amounts are evaluated regularly by the
Managing Director (who is the Company's chief operating decision maker) in deciding how to allocate
resources and in assessing performance.

The accounting policies adopted for segment reporting are in conformity with the accounting policies of
the Company. Segment revenue, segment expenses, segment assets and segment liabilities have been
identified to segments on the basis of their relationship to the operating activities of the segment. Inter
segment revenue is accounted on the basis of transactions which are primarily determined based on
market / fair value factors. Revenue, expenses, assets and liabilities which relate to the Company are not
allocable to segments on a reasonable basis have been included under 'unallocated revenue / expenses /
assets / liabilities'.

2.12. Employee Benefits:

2.12.1. Short-term employee benefits:

Short-term employee benefits (including leave) are recognized as an expense at an undiscounted amount
in the Statement of Profit and Loss of the year in which the related services are rendered;

2.12.2. Post-employment benefits:

The Company operates the following post - employment schemes:

• Defined contribution plans such as provident fund; and

• Defined benefit plans such as gratuity
Defined Contribution Plans:

Obligations for contributions to defined contribution plans such as provident fund are recognised as
an expense in the Statement of Profit and Loss as the related service is rendered by the employee. The
said benefits are classified as Defined Contribution Schemes as the Company has no further defined
obligations beyond the monthly contributions.

Defined Benefit Plans:

The Company's net obligation in respect of defined benefit plans such as gratuity is calculated by
estimating the amount of future benefit that the employees have earned in the current and prior periods,
discounting that amount and deducting the fair value of any plan assets.

The calculation of defined benefit obligation is performed at each reporting period end by a qualified
actuary using the projected unit credit method. When the calculation results in a potential asset for the
Company, the recognised asset is limited to the present value of the economic benefits available in the
form of any future refunds from the plan or reductions in future contributions to the plan.

The current service cost of the defined benefit plan, recognized in the Statement of Profit and Loss as
part of employee benefit expense, reflects the increase in the defined benefit obligation resulting from
employee service in the current year, benefit changes, curtailments and settlements. Past service costs
are recognized immediately in the Statement of Profit and Loss. The net interest is calculated by applying
the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This
net interest is included in employee benefit expense in the Statement of Profit and Loss.

Re-measurement gains and losses arising from experience adjustments and changes in actuarial
assumptions are recognised in the period in which they occur, directly in other comprehensive income.

2.13. Borrowing costs:

2.13.1. Borrowing costs consist of interest and other costs incurred in connection with the borrowing of funds.
Borrowing costs also include exchange differences to the extent regarded as an adjustment to the
borrowing costs;

2.13.2. Borrowing costs that are attributable to the acquisition or construction of qualifying assets (i.e. an asset
that necessarily takes a substantial period of time to get ready for its intended use) are capitalized as a
part of the cost of such assets. All other borrowing costs are charged to the Statement of Profit and Loss;

2.13.3. Investment Income earned on the temporary investment of funds of specific borrowings pending their
expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.

2.14. Foreign Currency Transactions:2.14.1. Monetary items:

Transactions in foreign currencies are initially recorded at their respective exchange rates at the date the
transaction first qualifies for recognition.

Monetary assets and liabilities denominated in foreign currencies are translated at exchange rates
prevailing on the reporting date.

Exchange differences arising on settlement or translation of monetary items are recognised in Statement
of Profit and Loss either as profit or loss on foreign currency transaction and translation or as borrowing
costs to the extent regarded as an adjustment to borrowing costs.

2.14.2. Non - Monetary items:

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated
using the exchange rates at the dates of the initial transactions.

2.15. Fair Value measurement:

2.15.1. The Company measures certain financial instruments at fair value at each reporting date;

2.15.2. Certain accounting policies and disclosures require the measurement of fair values, for both financial and
non- financial assets and liabilities;

2.15.3. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date in the principal or, in its absence, the
most advantageous market to which the Company has access at that date. The fair value of a liability also
reflects its non-performance risk;

2.15.4. The best estimate of the fair value of a financial instrument on initial recognition is normally the transaction
price - i.e. the fair value of the consideration given or received. If the Company determines that the fair
value on initial recognition differs from the transaction price and the fair value is evidenced neither by a
quoted price in an active market for an identical asset or liability nor based on a valuation technique that
uses only data from observable markets, then the financial instrument is initially measured at fair value,
adjusted to defer the difference between the fair value on initial recognition and the transaction price.
Subsequently that difference is recognised in Statement of Profit and Loss on an appropriate basis over
the life of the instrument but no later than when the valuation is wholly supported by observable market
data or the transaction is closed out;

2.15.5. While measuring the fair value of an asset or liability, the Company uses observable market data as far as
possible. Fair values are categorised into different levels in a fair value hierarchy based on the inputs used
in the valuation technique as follows:

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities

Level 2: inputs other than quoted prices included in Level 1 that are observable for the assets or liability,
either directly (i.e. as prices) or indirectly (i.e. derived from prices)

Level 3: inputs for the assets or liability that are not based on observable market data (unobservable
inputs);

2.15.6. When quoted price in active market for an instrument is available, the Company measures the fair value
of the instrument using that price. A market is regarded as active if transactions for the asset or liability
take place with sufficient frequency and volume to provide pricing information on an ongoing basis;

2.15.7. If there is no quoted price in an active market, then the Company uses valuation techniques that maximise
the use of relevant observable inputs and minimise the use of unobservable inputs. The chosen valuation
technique incorporates all of the factors that market participants would take into account in pricing a
transaction;

2.15.8. The Company regularly reviews significant unobservable inputs and valuation adjustments. If third party
information, such as broker quotes or pricing services, is used to measure fair values, then the Company
assesses the evidence obtained from third parties to support the conclusion that these valuations meet
the requirements of Ind AS, including the level in the fair value hierarchy in which the valuations should
be classified.

2.16. Financial Instruments:

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial
liability or equity instrument of another entity.

2.16.1. Financial Assets:I. Initial recognition and measurement:

The Company recognizes financial assets when it becomes a party to the contractual provisions of
the instrument.

All financial assets and liabilities are recognized at fair value on initial recognition, except for trade
receivables that do not contain a significant financing component that are initially measured at the
transaction price determined under Ind AS 115.

Transaction costs that are directly attributable to the acquisition or issue of financial assets and
financial liabilities, which are not at fair value through profit or loss, are added to the fair value
on initial recognition. Financial assets are classified at the initial recognition as financial assets
measured at fair value or as financial assets measured at amortised cost.

II. Subsequent measurement:

Financial assets are subsequently classified as measured at

a) amortised cost;

b) fair value through profit and loss (FVTPL);

c) fair value through other comprehensive income (FVOCI).

Financial assets are not reclassified subsequent to their recognition, except if and in the period the
Company changes its business model for managing financial assets.

a) Measured at amortised cost:

Financial assets that are held within a business model whose objective is to hold financial
assets in order to collect contractual cash flows that are solely payments of principal and
interest, are subsequently measured at amortised cost using the effective interest rate ('EIR')
method less impairment, if any. The amortisation of EIR and loss arising from impairment, if
any is recognised in the Statement of Profit and Loss.

b) Measured at FVOCI:

Financial assets that are held within a business model whose objective is achieved by
both, selling financial assets and collecting contractual cash flows that are solely payments
of principal and interest, are subsequently measured at FVOCI. Fair value movements are
recognized in the other comprehensive income (OCI). Interest income measured using the EIR
method and impairment losses, if any are recognised in the Statement of Profit and Loss. On
de-recognition, cumulative gain or loss previously recognised in OCI is reclassified from the
equity to 'other income' in the Statement of Profit and Loss.

For equity instruments, the Company may make an irrevocable election (on initial recognition)
to present in other comprehensive income subsequent changes in the fair value. The Company
makes such election on an instrument-by-instrument basis.

If the Company decides to classify an equity instrument as at FVOCI, then all fair value changes
on the instrument, excluding dividends, are recognised in the Other Comprehensive Income
(OCI). There is no recycling of the amounts from OCI to Statement of Profit and loss, even
on sale of investment. However, the Company may transfer the cumulative gain or loss within
equity.

Equity instruments included within the FVTPL category are measured at fair value with all
changes recognised in the Statement of Profit & Loss.

c) Measured at FVTPL:

A financial asset not classified as either amortised cost or FVOCI, is classified as FVTPL. Such
financial assets are measured at fair value with all changes in fair value, including interest
income and dividend income if any, recognised as 'other income' in the Statement of Profit
and Loss.

III. De-recognition:

The Company derecognises a financial asset when the contractual rights to the cash flows from the
financial asset expire, or it transfers the contractual rights to receive the cash flows from the asset
and the transfer qualifies for derecognition under Ind AS 109.

IV. Impairment of Financial assets:

In accordance with Ind AS 109, the Company applies Expected Credit Loss (ECL) model for
measurement and recognition of impairment loss on the financial assets measured at amortised
costs and debt instruments measured at FVOCI.

Loss allowance on receivables from customers are measured following the 'simplified approach' at
an amount equal to lifetime ECL at each reporting date. In respect of other financial assets, the loss
allowance is measured at 12 months ECL only if there is no significant deterioration in the credit risk
since initial recognition of the asset or asset is determined to have a low credit risk at the reporting

2.16.2. Financial Liabilities:I. Initial recognition and measurement:

Financial liabilities are recognised when the Company becomes a party to the contractual provisions
of the instrument.

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings
and payables, net of directly attributable transaction costs. For trade and other payables maturing
within one year from the Balance Sheet date, the carrying amounts approximate fair value due to
the short maturity of these instruments.

II. Subsequent measurement:

Financial liabilities are subsequently measured at amortised cost using the EIR method. Financial
liabilities carried at FVTPL are measured at fair value with all changes in fair value recognised in the
Statement of Profit and Loss.

III. De-recognition:

A financial liability is derecognised when the obligation specified in the contract is discharged,
cancelled or expires.

2.16.3. Financial guarantees:

Financial guarantee contracts issued by the Company are those contracts that require a payment to be
made to reimburse the holder for a loss it incurs because the specified debtor fails to make a payment
when due in accordance with the terms of the debt instrument.

Financial guarantee contracts are recognised initially as a liability at fair value, adjusted for transaction
costs that are directly attributable to the issuance of the guarantee.

Subsequently, the liability is measured at the higher of the amount of loss allowance determined as per
impairment requirements of Ind AS 109 and the fair value initially recognised less cumulative amortisation.

2.16.4. Derivative financial instruments:

The Company uses derivative financial instruments to manage the exposure on account of fluctuation in
interest rate and foreign exchange rates. Such derivative financial instruments are initially recognised at
fair value on the date on which a derivative contract is entered into and are subsequently measured at
fair value with the changes being recognised in the Statement of Profit and Loss. Derivatives are carried
as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.

2.16.5. Embedded derivatives:

If the hybrid contract contains a host that is a financial asset within the scope of Ind AS 109, the classification
requirements contained in Ind AS 109 are applied to the entire hybrid contract.

Derivatives embedded in all other host contracts, including financial liabilities are accounted for as
separate derivatives and recorded at fair value, if their economic characteristics and risks are not closely
related to those of the host contracts and the host contracts are not held for trading or designated at
FVTPL.

These embedded derivatives are measured at fair value with changes in fair value recognised in Statement
of Profit and Loss, unless designated as effective hedging instruments.

Reassessment only occurs if there is a change in the terms of the contract that significantly modifies the
cash flows.

2.16.6.Offsetting of financial instruments:

Financial assets and financial liabilities are offset and the net amount is reported in the Balance Sheet, if
there is a currently enforceable legal right to offset the recognised amounts and there is an intention to
settle on a net basis, or to realise the assets and settle the liabilities simultaneously.

2.16.7. Derivate Financial Instruments and Hedge Accounting

Derivative instruments such as forward currency contracts are used to hedge foreign currency risks, and
are initially recognized at their fair values on the date on which a derivative contract is entered into and

are subsequently re-measured at fair value on each reporting date. A hedge of foreign currency risk of a
firm commitment is accounted for as a fair value hedge. Any gains or losses arising from changes in the
fair value of derivatives are taken directly to Statement of Profit and Loss.

Derivatives are only used for economic hedging purposes and not as speculative investments.

Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when
the fair value is negative.

Derecognition

The Company derecognizes a financial asset when the contractual rights to the cash flows from the
financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition as per
Ind AS 109 . A financial liability (or a part of a financial liability) is derecognized from the company's
balance sheet when the obligation specified in the contract is discharged or cancelled or expires.

2.17. Taxes on Income2.17.1. Current Tax

Income-tax Assets and liabilities are measured at the amount expected to be recovered from or paid
to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are
enacted or substantively enacted, by the end of reporting period.

Current Tax items are recognised in correlation to the underlying transaction either in the Statement of
Profit and Loss, other comprehensive income or directly in equity;

2.17.2. Deferred tax

Deferred tax is provided using the Balance Sheet method on temporary differences between the tax
bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting
date.

Deferred tax liabilities are recognised for all taxable temporary differences. Deferred tax assets are
recognised for all deductible temporary differences, the carry forward of unused tax credits and any
unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit
will be available against which the deductible temporary differences, and the carry forward of unused tax
credits and unused tax losses can be utilised.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent
that it is no longer probable that sufficient taxable profit will be available to allow all or part of the
deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date
and are recognised to the extent that it has become probable that future taxable profits will allow the
deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year
when the asset is realised or the liability is settled, based on tax rates and tax laws that have been enacted
or substantively enacted at the reporting date.

Deferred Tax items are recognised in correlation to the underlying transaction either in the Statement of
Profit and Loss, other comprehensive income or directly in equity.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off
current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity
and the same taxation authority.

2.18. Earnings per share

2.18.1. Basic earnings per share is calculated by dividing the profit or loss for the period attributable to equity
shareholders by the weighted average number of equity shares outstanding during the period;

2.18.2. For the purpose of calculating diluted earnings per share, the profit or loss for the period attributable
to equity shareholders and the weighted average number of shares outstanding during the period are
adjusted for the effect of all dilutive potential equity shares.

2.19. Cash and Cash equivalents:

2.19.1. Cash and cash equivalents in the Balance Sheet include cash at bank, cash, cheque, draft on hand and
demand deposits with an original maturity of less than three months, which are subject to an insignificant
risk of changes in value;

2.19.2. For the purpose of Statement of Cash Flows, Cash and cash equivalents include cash at bank, cash,
cheque and draft on hand net off of outstanding bank overdrafts as they are considered an integral
part of the Company's cash management. The Company considers all highly liquid investments with a
remaining maturity at the date of purchase of three months or less and that are readily convertible to
known amounts of cash to be cash equivalents.

2.20. Cash Flows:

Cash flows are reported using the indirect method, where by net profit before tax is adjusted for the
effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash
receipts or payments and item of income or expenses associated with investing or financing cash flows.
The cash flows from operating, investing and financing activities are segregated.

2.21. Dividend:

Final dividend on shares are 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.

3. Recent Pronouncements:

Ministry of Corporate Affairs (“MCA”) notifies new 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 notified amendments to Ind AS 21 - The Effects of Changes in Foreign Exchange Rates, Ind
AS 1 - Presentation of Financial Statements, Ind AS 7 - Statement of Cash Flows, Ind AS 107 - Financial
Instruments: Disclosures and Ind AS 12, International Tax Reform - Pillar Two Model Rules. The company
has reviewed the new pronouncements and based on its evaluation given necessary impact (including
additional disclosures) as applicable.

Note:

(i) Other loans and advance includes loan amounting to Rs. 219.51 lakhs (as at March 31, 2025: Rs.
219.51 lakhs) given to a subsidiary without specifying any terms or period of repayment (Refer
note 44 and 61)

(ii) No loans are due from directors or other Officers of the Company either severally or jointly with
any other person. Further, no loans are due from firms or private companies respectively in which
any director is a partner, a director or a member.

(iii) The Company has not given any loans or advances in nature of loans to key mangerial persons (KMP),
directors or promoters either severally or jointly with any other person except note (i) above.

(i) No loans are due from directors or other Officers of the Company either severally or jointly with
any other person. Further, no loans are due from firms or private companies respectively in which
any director is a partner, a director or a member.

(ii) The Company has not given any loans or advances in nature of loans to key mangerial persons
(KMP), directors or promoters either severally or jointly with any other person.

(iii) The Company has not given any short term loan to related party.

21.3 Rights, Preferences and restrictions attached to Equity Shares

The company has only one class of equity shares having par value of Rs. 1/- each (PY Rs. 1/- each).
Holder of equity shares is entitled to one vote per share. The company declares and pays dividend in
Indian Rupees. The dividend, if any, proposed by the Board of Directors is subject to the approval of the
shareholders in the ensuing annual general meeting.

In the event of liquidation of the company, the holders of the equity shares will be entitled to receive
remaining assets of the company, after distribution of all preferential amounts. The distribution will be in
proportion to the number of equity shares held by the shareholders.

21.4 During the 5 years immediately preceding the balance sheet date, there were no equity shares allotted as
fully paid up pursuant to contract without payment being received in cash, no bonus shares were issued
and there was no buy-back of equity shares of the Company.

Retained earning represents surplus/accumulated earnings of the company and are available for
distribution to shareholders.

22.6 Dividend

The Company has paid final dividend of Rs. 3 per equity share of face value of Rs. 1 each, aggregating to
Rs. 1079.82 lakhs for FY 2024-25 (previous year Rs. Nil)

Proposed Dividend:

The Board of Directors at its meeting held on 22nd April, 2026 have recommended a payment of final
dividend of Rs. 2/- (Previous year Rs. 3) per equity share of face value of Rs. 1 each for the financial year
ended 31st March, 2026.

The above is subject to approval at the ensuing Annual General Meeting of the Company and hence is
not recognised as a liability.

a) Bank returns/stock statements filed by the Company with its bankers are in materially agreement
with books of accounts except in respect of quarter ended March 31, 2026 where such quarterly
return/statement is yet to be filed.

b) Term of repayment and securities for current borrowings
All the working capital facilities are secured against:

i) First pari passu charge on entire current assets of the Company, excluding those kept, stored,
lying loose at Unit No. 1, both present and future.

ii) Second pari passu charge on the entire movable property, plant and equipment, excluding the
movable property, plant and equipment situated or kept at unit no. 1, of the Company.(save
and except for vehicles)

iii) Second pari passu charge on immovable property, plant and equipment of the Company
situated at silvassa plant unit II bearing survey no. 64/2, 64/3, 64/4, 61/1, 61/2, 63/5, 63/7,
62/5 and all the piece and parcel of Industrial non-agricultural land bearing Survey No. 62/5,
admeasuring 2700 sq.mtrs., situated at village - Amli, Silvassa Union Territory of Dadra &
Nagar Haveli.

iv) Fixed Deposits amounting to Rs.0.50 lakhs (As at March 31, 2025 Rs. 0.50 lakhs) pledged as
margin money deposit for facilities from Banks. (Refer note no. 10 and 17 )

v) Sole charge by way of pledge of mutual funds

(i) There are no amounts due for payment to the Investor Education and Protection Fund Under
Section 125 of Act, as at the year end.

(ii) Amount of Rs. 12.22 lakhs (P.Y. 2024-25: 14.52 lakhs) is transferred to Investor Education and
Protection Fund during the year.

(iii) Others Include Call Put Option Liability of Rs 166.35 Lakhs

2 Disaggregate Revenue

The table below presents disaggregated revenues of the Company from contracts with customers by
geography/ offerings/ contract-type/market . The Company believes that this disaggregation best
depicts how the nature, amount, timing and uncertainty of its revenues and cash flows are affected by
industry, market and other economic factors.

43 Employee benefits

A Defined Contribution plans:

The company contributes to the Government managed provident and pension fund for all qualifying employees.

Contribution to provident fund of Rs. 151.76 lakhs (March 31, 2025: Rs. 140.20 lakhs) is recognised as an
expense and included in “Contribution to provident and other funds” in Statement of Profit and Loss.

B Defined benefit plans:

The Company has defined benefit plan for payment of gratuity to all qualifying employees. It is governed by
the Payment of Gratuity Act, 1972. Under this Act, an employee who has completed five years of service is
entitled to the specified benefits provided which depends on the employee's length of service and salary at
retirement age. The Company's defined benefit plan is funded with Life Insurance Corporation (LIC).

There are no other post retirement benefits provided by the Company.

The present value of the defined benefit obligation, the related current service cost and past service cost,
were measured using the projected unit credit method.

The sensitivity analysis presented above may not be representative of the actual change in the defined
benefit obligation as it is unlikely that the change in assumption would occur in isolation of one another
as some of the assumptions may be correlated. Furthermore, in presenting the above sensitivity analysis,
the present value of the defined benefit obligation has been calculated using the projected unit credit
method at the end of the reporting period, which is the same as that applied in calculating the defined
benefit obligation liability recognised in the balance sheet.

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

Estimates of future salary increases considered in actuarial valuation take account of inflation, seniority,
promotion and other relevant factors such as supply and demand in the employment market.

These plans typically expose the Company to actuarial risks such as interest rate risk and salary risk.

(a) Interest risk: a decrease in the bond interest rate will increase the plan liability.

(b) Salary risk: the present value of the defined benefit plan liability is calculated by reference to the
future salaries of plan participants. As such, a variation in the expected rate of salary increase of the
plan participants will change the plan liability.

C Other short term employee benefits
Short term leave

The expenses towards compensated absences (annual and short term leave) for the year ended March
31, 2026 of Rs. 35.71 lakhs (March 31, 2025: Rs. 37.66 lakhs), which is included in the 'Employee benefits
expense' in the Statement of Profit and Loss.

Notes:

(a) The transactions with related parties are made in the normal course of business and on the terms
equivalent to those that prevails in the arm's length transactions.

(b) Amounts outstanding are unsecured and will be settled in cash or receipts of goods and services.

(c) There have been no guarantees provided or received for any related party receivables or payables.

(d) Impairment provision amounting to Rs Nil (for the year ended 31st March 2025:440 Lakhs) has been
recognised in respect of investment in shares of wholly owned subsidiaries.

(e) The company has made a provision aggregating to Rs. Nil (for the year ended 31st March 2025: 505.60)
against the loan and advances given to the wholly owned subsidiary company..

45 Segment information

As per the requirements of para 4 of Ind AS 108 -Operating Segments, segment information has been
provided under the Notes to Consolidated Financial Statements.

46.1 Contingent liabilities not provided for:

Claims against the company not acknowledged as debt:

(i) Claim against Company not acknowledged as debt, comprises of excise duty & Custom
duty disputed by company relating to issue of applicability of duty and classification of
goods aggregating to Rs.963.16 lakhs (As at March 31, 2025: Rs. 963.16 lakhs).

(ii) The Differential CST liability in respect of Non Collection of C Forms of Rs. 42.12 lakhs (As
at March 31, 2025: Rs. 42.12 lakhs).

(iii) In the Earlier Years, Goods and Service Tax (GST) demand for Rs 643.51 lakhs pertaining
to the GST refund availed on exports on payment of IGST in EOU unit for FY 2018-19 to
2021-22 was raised. The matter is disposed off during the FY 2025-26. The company had
deposited Rs. 117.00 Lakhs (As at March 31, 2025: Rs 117.00 Lakhs) against the demand
under protest and the refund of the said deposit is awaited.

47 Financial instruments

A Capital Management:

The Company manages its capital structure with a view to ensure that it will be able to continue as a
going concern while maximising the return to stakeholders through the optimization of the debt and
equity balance.

The capital structure of the Company consists of net debt (borrowings as detailed in notes 23 & 27) and
total equity of the Company.

The Company's management reviews the capital structure of the Company on an annual basis. As part
of this review, the management considers the cost of capital and the risks associated with each class of
capital.

An impairment analysis is performed at each reporting date on an individual basis for major clients.
In addition, a large number of minor receivables are grouped into homogenous groups and assessed
for impairment collectively. The Company does not hold collateral as security. The Company has
no concentration of credit risk as the customer base is widely distributed both economically and
geographically.

The Company measures the expected credit loss of trade receivables based on historical trend, industry
practices and the business environment in which the entity operates. Loss rates are based on actual credit
loss experience and past trends.

The following table provides information about the exposure to credit risk and Expected Credit Loss
Allowance for trade and other receivables:

The management assessed that cash and bank balances, trade receivables, loans, trade payables,
borrowings (cash credit, foreign currency loans, working capital loans) and other financial assets
and liabilities approximate their carrying amounts largely due to the short-term maturities of these
instruments.

During the reporting period ending March 31, 2026 and March 31, 2025, there was no transfer
between level 1 and level 2 fair value measurement.

Key Inputs for Level 1 and 2 Fair valuation Technique:

1. Mutual Funds: Based on Net Asset Value of the Scheme (Level 2)

2. Derivative (forward) contracts : The fair value is determined using quoted forward exchange
rates at the reporting date. (Level 2)

3. Debentures: Based on comparable instruments (Level 2)

4. Listed Equity Investments (other than Subsidiaries): Quoted Bid Price on Stock Exchange (Level 1)

48 Financial risk management objectives (Ind AS 107)

The Company's Board of Directors has overall responsibility for the establishment and oversight of the
Company's risk management framework.

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. Risk management policies and
systems are reviewed regularly to reflect changes in market conditions and the Company's activities.

The key risks and mitigating actions are also placed before the Audit Committee of the Company.

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

A) Credit risk;

B) Liquidity risk; and

C) Market risk
A Credit risk

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. Credit risk arises primarily form financial assets such as trade
receivables, investments in mutual funds, alternative investment funds, preference shares, debentures,
derivative financial instruments, other balances with banks, loans and other receivables.

Trade and other receivables

Customer credit is managed by each business unit subject to the Company's established policies,
procedures and control relating to customer credit risk management. Trade receivables are non-interest
bearing and are generally on 0 to 180 days credit term. Credit limits are established for all customers
based on internal rating criteria. Outstanding customer receivables are regularly monitored.

Loans

The Company has given interest free unsecured loan to subsidiary, Sarlaflex Inc. The subsidiary has
suspended its manufacturing operations since December, 2017 and has a negative net worth as on
March 31, 2026. Credit risk have been increased significantly for these loans and accordingly necessary
impairment provisions have been made.

Other financial assets

The Company maintains exposure in cash and cash equivalents, term deposits with banks, investments
in Equity Shares, preference shares, Exchangeable Traded Funds, debentures, INVIT, treasury bills,
government securities, mutual funds, alternative investments funds and derivative contracts. The Group
has diversified portfolio of investment with various number of counter-parties which have secure credit
ratings hence the risk is reduced. Individual risk limits are set for each counter-party based on financial
position, credit rating and past experience. Credit limits and concentration of exposures are actively
monitored by the Management of the Group.

B 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.

Liquidity risk is managed by Company through effective fund management. The Company's principal
sources of liquidity are cash and cash equivalents, borrowings and the cash flow that is generated from
operations. The Company believes that current cash and cash equivalents, tied up borrowing lines and
cash flow that is generated from operations is sufficient to meet requirements. Accordingly, liquidity risk
is perceived to be low.

The following are the remaining contractual maturities of financial liabilities at the reporting date. Amounts
disclosed are the contractual un-discounted cash flows.

Sensitivity analysis

The following table details the Company's sensitivity to a 5% increase and decrease in the Rupee against
the relevant foreign currencies. 5% is the sensitivity rate used when reporting foreign currency risk
internally to key management personnel and represents management's assessment of the reasonably
possible change in foreign exchange rates. This is mainly attributable to the net exposure outstanding
on receivables or payables in the Company at the end of the reporting period. The sensitivity analysis
includes only outstanding foreign currency denominated monetary items and adjusts their translation
at the period end for a 5% charge in foreign currency rate. This analysis assumes that all other variables,
in particular interest rates, remain constant and ignores any impact of forecast sales and purchases. In
cases where the related foreign exchange fluctuation is capitalised to fixed assets or recognised directly
in reserves, the impact indicated below may affect the Company's income statement over the remaining
life of the related fixed assets or the remaining tenure of the borrowing respectively.

C Market risk

Market Risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate
risk and price risk.

I Currency Risk

The Company is exposed to currency risk on account of its operating and financing activities. The
functional currency of the Company is Indian Rupee. Company's exposure is mainly denominated in U.S.
dollars (USD). The USD exchange rate has changed substantially in recent periods and may continue to
fluctuate substantially in the future. The Company has put in place a Financial Risk Management Policy
to Identify the most effective and efficient ways of managing the currency risks. The Company uses
derivative instruments (mainly foreign exchange forward contracts) to mitigate the risk of changes in
foreign currency exchange rate.

II 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 prevailing market interest rates. The Company's exposure to the risk due to changes
in interest rates relates primarily to the Company's short-term and long term borrowings with floating
interest rates. The Company constantly monitors the credit markets and revisits its financing strategies to
achieve an optimal maturity profile and financing cost.

The Company has given interest free loan to Subsidiaries for business purpose.

The Company's investments in term deposits (i.e., certificates of deposits) with banks, investments in
preference shares, mutual funds and debentures are at fixed interest rate and therefore do not expose the
Company to significant interest rates risk.

III Price Risk

The Company has deployed its surplus fund into various financial instruments including units of mutual
fund, bond, debentures etc. The Company is exposed to price risk on such investments, which arises on
account of interest rate, liquidity and credit quality of underlying securities.

49 Hedge Accounting

The objective of hedge accounting is to represent, in the Company's financial statements, the effect of
the Company's use of financial instruments to manage exposures arising from particular risks that could
affect profit or loss.

Currency risk-

The Company's risk management policy is to hedge its estimated foreign currency exposure in respect of
highly forecasted sales. The Company uses forward exchange contracts to hedge its currency risk. Such
contracts are generally designated as fair value hedges. Company's policy is to match the critical terms
of the forward exchange contracts with that of the hedged item.

For derivative contracts designated as hedge, the Company documents at inception the economic
relationship between the hedging instrument and the hedged item, the hedge ratio, the risk management
objective for undertaking the hedge and the methods used to assess the hedge effectiveness. The hedging
book consists of transactions to hedge balance sheet assets or liabilities. The tenor of hedging instrument
may be less than or equal to the tenor of underlying hedged asset or liability.

Financial contracts designated as hedges are accounted for in accordance with the requirements of Ind
AS 109 depending upon the type of hedge.

Hedge effectiveness is ascertained at the time of inception of the hedge and periodically thereafter. The
Company assesses hedge effectiveness both on prospective and retrospective basis. The prospective
hedge effectiveness test is a forward looking evaluation of whether or not the changes in the fair value
or cash flows of the hedging position are expected to be highly effective on offsetting the changes in the
fair value or cash flows of the hedged position over the term of the relationship.

On the other hand, the retrospective hedge effectiveness test is a backward-looking evaluation of whether
the changes in the fair value or cash flows of the hedging position have been highly effective in offsetting
changes in the fair value or cash flows of the hedged position since the date of designation of the hedge.
Hedge effectiveness is assessed through the application of critical terms match method/Dollar offset
method. Any ineffectiveness in a hedging relationship is accounted for in the statement of profit and loss

53 Exceptional Item

During FY 2024-25

(a) Impairment loss recognized in statement of Profit and Loss (as an exceptional item ): Rs. 440 lakhs

(b) Recoverable amount: Rs. 2,600.60 lakhs

(c) Value in use: Rs. 5,544 lakhs

(d) Carrying Amount: Rs. 5,984 lakhs

(e) Assumptions used for valuation by an external expert:

• Valuation is carried out under Ind AS 36, Discounted Cash Flow is worked out with a weighted
average Cost of Capital 10%

• The Future projected Cash Flows were taken into consideration for discounting purposes

54 During FY 2025-26

The Company incorporated Sarla Flex Inc., a wholly owned subsidiary (WOS), in 2012 and had subscribed
to 9,89,000 Equity Shares of USD 1 each aggregating to USD 9,89,000 (Equivalent value of investment in
INR 596.50 Lakhs).

During FY 2019-20, 11, 1% Non-Cumulative Redeemable Preference Shares (NCRPS) of USD 1,000,000
each was issued by the WOS against the outstanding loan of USD 11,000,000 due to the financial health
of the said WOS.

The WOS has suspended its manufacturing operations since December 2017 and had a negative net worth
as on 31st March 2025 and 30th September 2025. Due to these circumstances the Company decided to
liquidate its investment in the NCRPS.

Due to negative net worth, the WOS had insufficient assets to cover its liabilities and in the situation of
distress, recovery was limited to residual assets after debt settlement, resulting in a significant haircut.

Owing to the above scenario, the Company intimated to the Reserve Bank of India (RBI) vide its letter
dated 16th February 2026 about its intention to sale the NCRPS at USD 11,000 each to a foreign entity and
also to grant permission to write off the losses resulting out of this sale transaction.

Since the buyer wanted to close the transaction immediately, the Company executed the Share Purchase
Agreement on 6th March 2026 while the RBI approval was still awaited.

This sale transaction resulted into a loss amounting to Rs. 7,713.26 lakhs. The provision for impairment
created in earlier years aggregated to Rs. 2,280.10 lakhs.

Accordingly, after reversing the aforesaid provision, the net impact of Rs. 5,433.16 lakhs is shown as an
Exceptional Item in the statement of Profit and Loss for the year ending 31st March 2026.

The Company has written to its Authorized Dealer (AD Bank) to release the funds received as a result
of the sale transaction, however, as the regulatory approval is still awaited the AD Bank has withheld the
credit of sale proceeds to the Company's account.

The management believes that there is no uncertainty regarding the approvals and the receipt of the
aforesaid consideration and has accordingly taken the impact in the Financial Statements.

55 Other disclosures

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 is not declared as wilful defaulter by any bank or financial Institution or other lender.

3. There is no Scheme of Arrangements approved by the Competent Authority in terms of sections
230 to 237of the Companies Act, 2013.

4. The Company has no 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).

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

6. The Company does not have any charges or satisfaction which is yet to be registered with ROC
beyond the statutory period except few charges, for which the company is in process of satisfying
charge against which payment has been made.

7. 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:

(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.

8. 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:

(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. 9. The
Company has complied with the requirement in respect of number of layers prescribed under
Section 2(87) of the Companies Act, 2013 read with Companies (Restiction on number of
Layers) Rule, 2017.

Note- The Company has initiated legal proceedings against both the above Companies for claiming the
outstanding amount and the same in sub-judiced. The balances whether recoverable will be decided on the
basis of Hon'ble Court's judgement.

58 The Proposed remuneration to Director for FY 2025-26 is in excess of the limits prescribed by section 197
read with Schedule V of the Act. The same is subject to approval of the members in the ensuing annual
general meeting.

59 On November 21, 2025, the Government of India notified 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 - consolidating 29 existing labour laws. The Ministry
of Labour & Employment published draft Rules and FAQs to enable assessment of the financial impact
due to changes in regulations. The Company has assessed the impact of the changes, consistent with the
Labour Codes, draft rules and FAQs.

Considering the regulatory-driven nature of this impact, the Company has presented such incremental
impact of INR 18.37 lakhs in the standalone Statement of profit and loss for the year ended on March 31,
2026. The Company continues to monitor the finalisation of Central / State Rules and clarifications from
the Government on other aspects of the Labour Code and would provide appropriate accounting effect
as appropriate.

60 For the Financial Year 2024-25, the company had paid Rs.359.85 lakhs inclusive of interest and penalty
towards the labilities arising form disallowance of input tax credit pursuant to an audit conducted by GST
authorities from FY 2018-19 to 2022-23.

This amount has been recognized in the statement of Profit and Loss under the head “Other Expenses”
and “Finance Cost”.

61 For the Financial Year 2024-25, the company had made a provision aggregating to Rs. 505.60 lakhs
against the loan and advances given to the wholly owned subsidiary company.

This amount has been recognized in the statement of Profit and Loss under the head “Other Expenses”.

62 Events after the reporting period

No adjusting or significant non - adjusting events have occurred between the reporting date (March 31,
2026) and the report release date (April 22, 2026)