1.14 Provisions and contingencies
Provisions

Provisions are recognised when there is a present obligation or
constructive obligation as a result of a past event and it is probable that
an outflow of resources embodying economic benefits will be required to
settle the obligation and there is a reliable estimate of the amount of the
obligation. Provisions are determined by discounting the expected future
cash flows at a pre tax rate that reflects current market assessment of
the time value of money and the risks specific to the liability.

Contingent liabilities

Contingent liabilities are disclosed when there is a possible obligation
arising from past events, the existence of which will be confirmed only by
the occurrence or non occurrence of one or more uncertain future events
not wholly within the control of the company or a present obligation that
arises from past events where it is either not probable that an outflow of
resources will be required to settle or a reliable estimate of the amount
cannot be made.

1.15 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.
Financial assets and financial liabilities are recognised when the Company
becomes a party to the contractual provisions of the instruments.

Financial assets and financial liabilities are initially measured at fair
value. Transaction costs that are directly attributable to the acquisition
or issue of financial instruments (other than financial assets and
financial liabilities at fair value through profit or loss) are added to
or deducted from the fair value of the financial assets or financial
liabilities, as appropriate, on initial recognition. Transaction costs
directly attributable to the acquisition of financial assets or financial
liabilities at fair value through profit or loss are recognized immediately
in profit or loss. Subsequently, financial instruments are measured
according to the category in which they are classified.

1.16 Financial Assets

1.16.1 Classification of financial assets

Classification of financial assets depends on the nature and purpose of
the financial assets and is determined at the time of initial recognition.

The Company classifies its financial assets in the following measurement

categories:

- those to be measured subsequently at fair value (either through other
comprehensive income, or through profit or loss), and

- those measured at amortised cost
Debt instruments

Subsequent measurement of debt instruments depends on the company’s
business model for managing the asset and the cash flow characteristics
of the asset. There are ‘three measurement categories into which the
company classifies its debt instruments:

Amortised Cost

Assets that are held for collection of contractual cash flows where those
cash flows represent solely payments of principal and interest are
measured at amortised cost. A gain or loss on a debt investment that is
subsequently measured at amortised cost and is not part of a hedging
relationship is recognised in profit or loss when the asset is derecognised
or impaired. Interest income from these financial assets is included in
finance income using the effective interest rate method.

Fair value through other comprehensive income (FVOCI):

Assets that are held for collection of contractual cash flows and for
selling the financial assets, where the assets’ cash flows represent
solely payments of principal and interest, are measured at fair value
through other comprehensive income (FVOCI). Movements in the
carrying amount are taken through OCI, except for the recognition
of impairment gains or losses, interest revenue and foreign exchange
gains and losses which which are recognised in profit and loss.
When the financial asset is derecognised, the cumulative gain or
loss previously recognised in OCI is reclassified from equity to profit
or loss and recognised in other gains/ (losses). Interest income
from these financial assets is included in other income using the
effective interest rate method.

Fair value through profit or loss:

Assets that do not meet the criteria for amortised cost or FVOCI
are measured at fair value through profit or loss. A gain or loss on
a debt investment that is subsequently measured at fair value
through profit or loss and is not part of a hedging relationship is
recognised in profit or loss and presented net in the statement of
profit and loss within other gains/(losses) in the period in which it
arises. Interest income from these financial assets is included in
other income.

Equity instruments

The company subsequently measures all equity investments at fair
value. Where the company’s management has elected to present
fair value gains and losses on equity investments in other
comprehensive income, there is no subsequent reclassification of
fair value gains and losses to profit or loss. Dividends from such
investments are recognised in profit or loss as other income when
the company’s right to receive payments is established.

Changes in the fair value of financial assets at fair value through
profit or loss are recognised in other gain or losses in the statement
of profit and loss. Impairment losses (and reversal of impairment
losses) on equity investments measured at FVOCI are not reported
separately from other changes in fair value.

.17 Trade Receivables

Trade receivables are recognised initially at fair value and
subsequently measured at amortised cost less provision for
impairment.

1.18 Cash and Cash equivalents

In the cash flow statement, cash and cash equivalents includes
cash in hand, cheques and drafts in hand, balances with bank and
deposits held at call with financial institutions, short-term highly
liquid investments with original maturities of three month or less
that are readily convertible to known amounts of cash and which
are subject to an insignificant risk of changes in value. Bank
overdrafts are shown within borrowings in current liabilities in the
balance sheet and forms part of financing activities in the cash flow
statement. Book overdraft are shown within other financial liabilities
in the balance sheet and forms part of operating activities in the
cash flow statement.

1.19 Impairment of Financial assets

The Company assesses impairment based on expected credit losses
(ECL) model to the following:

- Financial assets measured at amortized cost

- Financial assets measured at fair value through other
comprehensive income

Expected credit loss are measured through a loss allowance at an
amount equal to :

- the twelve month expected credit losses (expected credit losses
that result from those default events on the financial instruments
that are possible within twelve months after the reporting date);
or

- full life time expected credit losses (expected credit losses that
result from all possible default events over the life of the
financial instrument).

For trade receivables or any contractual right to receive cash or
another financial asset that result from transactions that are within
the scope of Ind AS 115, the Company always measures the loss
allowance at an amount equal to lifetime expected credit losses.

1.20 Income Recognition
Interest Income

Interest income from debt instruments is recognized using the
effective interest rate method.

1.21 Financial liabilities

All financial liabilities are subsequently measured at amortised cost using
the effective interest rate method or at fair value through profit or loss.

1.21.1 Trade and other payables

Trade and other payables represent liabilities for goods or services
provided to the Company prior to the end of financial year which are
unpaid.

1.21.2 Borrowing

Borrowings are initially recognised at fair value, net of transaction costs
incurred. Borrowings are subsequently measured at amortised cost. Any
difference between the proceeds (net of transaction costs) and the
redemption amount is recognised in profit or loss over the period of the
borrowings using the effective interest rate method.

Borrowings are removed from the balance sheet when the obligation
specified in the contract is discharged, cancelled or expired. The difference
between the carrying amount of a financial liability that has been
extinguished or transferred to another party and the consideration paid,
including any non-cash assets transferred or liabilities assumed, is
recognised in profit or loss.

1.21.3 Foreign exchange gains or losses

For financial liabilities that are denominated in a foreign currency and
are measured at amortised cost at the end of each reporting period, the
foreign exchange gains and losses are determined based on the
amortised cost of the instruments and are recognised in profit or loss.

The fair value of financial liabilities denominated in a foreign currency is
determined in that foreign currency and translated at the exchange rate
at the end of the reporting period. For financial liabilities that are measured
as at fair value through profit or loss, the foreign exchange component
forms part of the fair value gains or losses and is recognised in profit or
loss.

1.22 Segment reporting

Operating segments are reported in a manner consistent with the internal
reporting provided to the chief operating decision maker. Company has
only a single reportable segment.

1.23 Leases

Till March 31, 2019

Leases of property, plant and equipment where the Company, as a lessee
has substantially all the risks and rewards of ownership, are classified as
finance leases. Finance leases are capitalised at the lease’s inception at
the fair value of the leased property or, if lower, the present value of the
minimum lease payments. The corresponding rental obligations, net of
finance charges, are included in borrowings or other financial liabilities
as appropriate. Each lease payment is allocated between the liability
and finance cost. The finance cost is charged to the profit or loss over
the lease period so as to produce a constant periodic rate of interest on
the remaining balance of the liability for each period.

Leases in which a significant portion of the risks and rewards of ownership
are not transferred to the Company as lessee are classified as operating
leases. Payments made under operating leases (net of any incentives
received from the lessor) are charged to profit or loss on a straight-line
basis over the period of the lease unless the payments are structured to
increase in line with expected general inflation to compensate for the
lessor’s expected inflationary cost increases. Contingent rents are payable
as per the agreed terms.

With effective from April 1, 2019

From 1 April 2019, leases are recognised as a right-of-use asset and a
corresponding liability at the date at which the leased asset is available
for use by the Company. Contracts may contain both lease and non¬
lease components. The Company allocates the consideration in the
contract to the lease and non-lease components based on their relative
stand-alone prices. However, for leases of real is a lessee, it has elected
not to separate lease and non-lease components and instead accounts
for these as a single lease component.

Assets and liabilities arising from a lease are initially measured on a
present value basis. Lease liabilities include the net present value of the
following lease payments:

• fixed payments (including in-substance fixed payments), less any lease
incentives receivable,

• variable lease payment that are based on an index or a rate, initially
measured using the index or rate as at the commencement date,

• amounts expected to be payable by the Company under residual value
guarantees,

• the exercise price of a purchase option if the Company is reasonably
certain to exercise that option, and

• payments of penalties for terminating the lease, if the lease term
reflects the Company exercising that option.

Lease payments to be made under reasonably certain extension options
are also included in the measurement of the liability. The lease payments
are discounted using the interest rate implicit in the lease. If that rate
cannot be readily determined, which is generally the case for leases in
the Company, the lessee’s incremental borrowing rate is used, being the
rate that the individual lessee would have to pay to borrow the funds
necessary to obtain an asset of similar value to the right-of-use asset in
a similar economic environment with similar terms, security and
conditions.

To determine the incremental borrowing rate, the Company:

• where possible, uses recent third-party financing received by the
individual lessee as a starting point, adjusted to reflect changes in
financing conditions since third party financing was received

• uses a build-up approach that starts with a risk-free interest rate
adjusted for credit risk for leases held by the Company, which does
not have recent third party financing, and

• makes adjustments specific to the lease, e.g. term, country, currency
and security.

Lease payments are allocated between principal and finance cost. The
finance cost is charged to profit or loss over the lease period so as to
produce a constant periodic rate of interest on the remaining balance of
the liability for each period.

Variable lease payments that depend on sales are recognised in profit or
loss in the period in which the condition.

In addition, the carrying amount of lease liabilities is remeasured if there
is a modification, a change in the lease term, a change in the lease
payments (e.g., changes to future payments resulting from a change in
an index or rate used to determine such lease payments) or a change in
the assessment of an option to purchase the underlying asset. Such
modification is adjusted against the Right-of-use asset.

Right-of-use assets are measured at cost comprising the following:

• the amount of the initial measurement of lease liability,

• any lease payments made at or before the commencement date less
any lease incentives received,

• any initial direct costs, and

• restoration costs.

Right-of-use assets are generally depreciated over the shorter of the
asset’s useful life and the lease term on a straight-line basis. If the
Company is reasonably certain to exercise a purchase option, the right-
of-use asset is depreciated over the underlying asset’s useful life.

Payments associated with short-term leases of equipment and all leases
of low-value assets are recognised on a straight-line basis as an expense
in profit or loss. Short-term leases are leases with a lease term of 12
months or less.

1.24 Bo rrowi n g costs

General and specific borrowing costs that are directly attributable to the
acquisition, construction or production of a qualifying asset are capitalised
during the period of time that is required to complete and prepare the
asset for its intended use or sale. Qualifying assets are assets that
necessarily take a substantial period of time to get ready for their intended
use or sale.

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

Other borrowing costs are expensed in the period in which they are
incurred.

1.25 Government grants

Grants from the government are recognised at their fair value where there
is a reasonable assurance that the grant will be received and the Company
will comply with all attached conditions.

Government grants relating to income are deferred and recognised in
the profit or loss over the period necessary to match them with the costs
that they are intended to compensate and presented within other income.

Government grants relating to the purchase of property, plant and
equipment are included in non-current liabilities as deferred income and
are credited to profit or loss on a straight-line basis over the expected
lives of the related assets and presented within other income.

1.26 Earning Per Share

Basic earnings per share have been computed by dividing the net income
by the weighted average number of shares outstanding during the year.
Diluted earnings per share has been computed using the weighted
average number of shares and diluted potential shares, except where
the result would be anti-dilutive.

1.27 Exceptional Items

Exceptional Items are transactions which due to their size or incidence
are separately disclosed to enable a full understanding of Company’s
financial performance. Items which may be considered exceptional are
diminution in value of investments in equity shares of subsidiaries,
Impairment Loss, etc.

1.28 New standards and amendments

The Company has applied the following standards and amendmens for
the first time for their annual reporting period commencing 1st April 2019:

i) Ind AS 116, Leases

ii) Uncertainty over inceome tax treatments - Appendix C to Ind AS 12,
Income Taxes

iii) Plan amendment, Curtailment and Settlement - Amendments to Ind
AS 19, Employee Benefits

iv) Amendment to Ind AS 12, Income Taxes

v) Amendment to Ind AS 23, Borrowing costs

The company adopted Ind AS 116 Leases standard, the impact of adoption
has been disclosed as part of notes. Other amendments did not have
any significant impact on the financial statements.

Extension and termination options

Extension options has been included in a certain of leases. These are
used to maximise operational flexibility in terms of managing the assets
used in the Company’s operations.

Critical judgements in determining the lease term

In determining the lease term, management considers all facts and
circumstances that create an economic incentive to exercise an extension
option, or not exercise a termination option. Extension options are only
included in the lease term if the lease is reasonably certain to be
extended.

For leases of factory building, the following are normally the most relevant:

• If there are significant penalties to terminate or not extend, the
Company is typically reasonably certain to extend.

• If the leasehold improvements are expected to have a significant
remaining value, the Company is typically reasonably certain to extend.

• Otherwise, the Company considers other factors including historical
lease durations and the costs and business disruption required to
replace the leased asset.

The lease term is reassessed if an option is actually exercised or not
exercised, or the Company becomes obliged to exercise or not exercise.
The assessment of reasonable certainty is only revised if a significant
event or a significant change in circumstances occurs, which affects this
assessment, and that is within the control of the lessee.

The Company has adopted Ind AS 116 ‘Leases’ with the date of initial
application being April 1, 2019. Ind AS 116 replaces Ind AS 17 - Leases.
The Company has applied Ind AS 116 using the modified retrospective
approach with cumulative effect of initial application recognised in retained
earnings at April 1, 2019. The comparative information in the financial
statements would not be restated and would be presented based on the
requirements of the previous standard i.e. Ind AS 17.

In adopting Ind AS 116, the Company has applied the below practical
expedients:

• The company has not reassessed whether a contract is, or contains,
a lease as per the definitions of IndAS 116 at the date of initial
application.

• The company applied a single discount rate to a portfolio of leases
with reasonably similar characteristics.

• The company relied on its assessment of whether leases are onerous
applying Ind AS 37, Provisions, Contingent Liabilities and Contingent
Assets, immediately before the date of initial application as an
alternative to performing an impairment review as per Ind AS 36
Impairment of assets.

• The Company has treated the leases with remaining lease term of
less than 12 months as “short term leases”.

• The Company has excluded the initial direct costs from measurement
of the right-of-use asset at the date of transition.

• The company used hindsight, such as in determining the lease term

if the contract contains options to extend or terminate the lease.

Effective 1st April 2019, the company has adopted Ind AS 116 “Leases”
and applied the Standard to its leases retrospectively and has recognised
the effect of the cumulative adjustment (net of taxes) of Rs.3.25 Crores in
the opening balance of retained earnings, on the date of initial application
(1st April 2019). Accordingly, comparatives for the period prior has not
been restated.

The adoption of the Standard has resulted in recognising “Right-of-use
asset” of Rs. 20.83 crores and a corresponding “Lease liability” of Rs.
20.83 crores as at the date of initial application. The net impact on
retained earnings on 1st April 2019 is Nil.

a Fair Value Hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair
value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, traded bonds and mutual funds that
have quoted price. The fair value of all equity instruments (including bonds) which are traded in the stock exchanges is valued using the closing price as at the
reporting period. The mutual funds are valued using the closing NAV.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the-counter derivatives) is determined using
valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to
fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity
securities, contingent consideration and indemnification asset included in level 3.

There are no transfers between levels 1 and 2 during the year. The company’s policy is to recognise transfers into and transfers out of fair value hierarchy levels as
at the end of the reporting period.

b Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include the use of quoted market prices or dealer quotes for similar instruments The carrying
amounts of trade receivables, trade payables, cash and cash equivalents and other current financial liabilities are considered to be the same as their fair values, due
to their short-term nature.

33 FINANCIAL RISK MANAGEMENT

The company’s activities expose it to market risk, liquidity risk and credit risk.

A. Credit Risk

Company faces credit risk from cash and cash equivalents, deposits with banks and financial institutions and unsecured trade receivables. The company doesn’t
face any credit risk with other financial assets.

Credit Risk Management

Credit risk on deposit is mitigated by the depositing the funds in reputed private sector bank. For trade receivables, the primary source of credit risk is that these
are unsecured.The Company sells the products to customers only when the collection of trade receivables is certain and whether there has been a significant
increase in the credit risk on an on-going basis is monitored throughout each reporting period. As at the balance sheet date, based on the credit assessment the
historical trend of low default is expected to continue. An impairment analysis is performed at each reporting date on an individual basis for major clients. Any
recoverability of receivables is provided for based on the impairment assessment. Historical trends showed as at 31st March 2025 company had no significant
credit risk.

B. Liquidity Risk

Objective of liquidity risk management is to maintain sufficient cash and marketable securities and the availability of funding through an adequate amount of
committed credit facilities to meet obligations when due. Management monitors rolling forecasts of The company’s liquidity position and cash and cash equivalents
on the basis of expected cash flows.

(i) Maturities of Financial Liabilities

The tables below analyse The company’s financial liabilities into relevant maturity groupings based on their contractual maturities for:

a) all non-derivative financial liabilities, and

b) net and gross settled derivative financial instruments for which the contractual maturities are essential for an understanding of the timing of the cash flows. The
amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting
is not significant.

B The Title deeds of the immovable properties (other than properties where the Company is the lessee and the lease agreement with MEPZ - SEZ has expired on
31-12-2022 Approval has been received from The Development Commissioner and Chariperson, MEPZ - SEZ, Chennai - 600045 for renewal of the lease from
01/01/2023 and the lease agreement are executed and registered on 22/06/2023) are held in the name of the Company.

C The Company has not granted Loans or Advances in the nature of loan to any promoters, Directors, KMPs and the related parties (As per Companies Act, 2013),
which are repayable on demand or period of repayments.

D In the opinion of the Management , Current Assets, Loans and Advances have a value of at least equal to the amounts shown in the Balance Sheet, if realized
in the due course of the business. The provision for all liabilities is adequate and not in excess of the amount reasonably necessary.

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

F The Company does not have any transactions with companies struck off.

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

H The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

I The Company has sanctioned facilities from banks on the basis of security of current assets. The periodic returns filed by the Company with such banks are in
agreement with the books of accounts of the Company. The company has followed the instruction from bank and submitted the stock statement in value
to the extent its eligible for Drawing power and however the differential quantities are declared separately under “Stock not Considered for DP” and disclose
entire stocks in quantities in stock statement as per books of accounts.

J The Company has adhered to debt repayment and interest service obligations on time. “wilful defaulter” related disclosures required as per Additional
Regulatory Information of Schedule III (revised) to the Companies Act, is not applicable.

K The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Companies Act, 2013 read with Companies (Restriction
on number of Layers) Rules, 2017.

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

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

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

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

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

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

N The Company does not have 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).

O The Company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses.

50 The figures / percentages / ratios for the previous period have been reclassified / reworked / regrouped wherever necessary including for amendments relating
to Schedule III of the Companies Act, 2013 for better understanding and comparability.

To be read with our report of even date

For and on Behalf of the Board

SRSV & Associates Venkatesh Rajagopal Vidyuth Rajagopal

Chartered Accountants Chairman Managing Director

Registration No : 015041S DIN : 00003625 DIN : 07578471

R. Subburaman S Venkataraghavan

Partner Chief Financial Officer

Membership No : 020562

Chennai,

27^th May 2025