s) Provisions and contingent liabilities

Provisions are recognised when the Company has a present legal or constructive obligation as a result of past
events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be
reliably estimated. These are reviewed at each year end and reflect the best current estimate. Provisions are not
recognised for future operating losses.

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is
determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of
an outflow with respect to any one item included in the same class of obligations may be small.

Provisions are measured at the present value of best estimate of the expenditure required to settle the present
obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax
rate that reflects current market assessments of the time value of money and the risks specific to the liability. The
increase in the provision due to the passage of time is recognised as interest expense.

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

t) Employee benefits
Defined benefit plan

Gratuity

Gratuity liability is a defined benefit obligation and is computed on the basis of an actuarial valuation by an
actuary appointed for the purpose as per projected unit credit method at the end of each financial year. The
liability or asset recognised in the Standalone Balance Sheet in respect of defined benefit gratuity plans is the
present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets.
The liability so provided is paid to a trust administered by the trustees nominated by the Company, which in turn
invests in eligible securities to meet the liability as and when it becomes due for payment in future. Any shortfall
in the value of assets over the defined benefit obligation is recognised as a liability with a corresponding charge
to the Standalone Statement of Profit and Loss.

The present value of the defined benefit obligation is determined by discounting the estimated future cash
outflows with reference to market yields at the end of the reporting period on government bonds that have terms
approximating to the terms of the related obligation.

The net interest cost is calculated by applying the discount rate at the beginning of the period to the net balance of
the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense
in the Standalone Statement of Profit and Loss.

Remeasurement 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. They are included in
retained earnings in the Statement of changes in equity and in the Standalone Balance Sheet.

Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments
are recognised immediately in profit or loss as past service cost.

Defined contribution plan

Contributions to defined contribution schemes such as contribution to provident fund, superannuation fund,
employees' state insurance corporation, national pension scheme and labour welfare fund are charged as an

expense to the Standalone Statement of Profit and Loss based on the amount of contribution required to be made
as and when services are rendered by the employees. The above benefits are classified as defined contribution
schemes as the Company has no further defined obligations beyond the monthly contributions.

Short-term employee benefits

All employee benefits payable within 12 months of service such as salaries, wages, bonus, ex-gratia, medical
benefits, etc, are recognised in the year in which the employees render the related service and are presented as
current employee benefit obligations. Termination benefits are recognised as an expense as and when incurred.

Short-term employee benefits are provided at undiscounted amount during the accounting period based on
service rendered by employees.

Other long-term employee benefits

The liabilities for earned leave is not expected to be settled wholly within 12 months after the end of the period
in which the employees render the related service. They are therefore measured as the present value of expected
future payments to be made in respect of services provided by employees up to the end of the reporting period
using the projected unit credit method. The benefits are discounted using the market yields at the end of the
reporting period that have terms approximating to the terms of the related obligation. Remeasurements as a
result of experience adjustments and changes in actuarial assumptions are recognised in profit or loss.

u) Earnings per share

Earnings per share (EPS) is calculated by dividing the net profit or loss for the period attributable to equity
shareholders by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted EPS, the net profit for the period attributable to equity shareholders and
the weighted average number of equity shares outstanding during the period are adjusted for the effects of all
dilutive potential equity shares.

Critical estimates and judgements

Preparation of the Standalone Financial Statements require use of accounting estimates, judgements and
assumptions, which by definition, will seldom equal the actual results. Appropriate changes in estimates are
made as the Management becomes aware of changes in circumstances surrounding the estimates. Changes in
estimates are reflected in the Standalone Financial Statements in the period in which changes are made and, if
material, their effects are disclosed in the notes to the Standalone Financial Statements. This Note provides an
overview of the areas that involve a higher degree of judgements or complexity and of items that are more likely to
be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed.
Detailed information about each of these estimates and judgements is included in relevant notes together with
information about the basis of calculation for each affected line item in the Standalone Financial Statements.

The areas involving critical estimates or judgements are:

i) Estimation for income tax: Note 1 (d)

ii) Estimation of useful life of property, plant and equipment: Note 1 (f)

iii) Estimation of defined benefit obligations: Note 1 (t)

iv) Impairment: Note 1 (i)

Note 11 Equity share capital (continued)

a) Rights, preferences and restrictions

The Company has one class of shares referred to as equity shares having a par value of ' 10 each.

i) Equity shares

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the
remaining assets of the Company, after distribution of all preferential amounts and preference shares, if any.
The distribution will be in proportion to the number of equity shares held by the shareholders. Each holder
of equity shares is entitled to one vote per share.

ii) Dividend

The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board is subject
to the approval of shareholders in the ensuing Annual General Meeting,

Refer Standalone Statement of changes in equity for detailed movement in other equity balance.

Nature and purpose of reserves

a) Securities premium

Securities premium is used to record the premium on issue of shares. The reserve is utilised in accordance with
the provisions of the Companies Act, 2013.

b) Retained earnings

Retained earnings are the profits that the Company has earned till date, less, any transfers to general reserve,
any transfers from or to other comprehensive income, dividends or other distributions paid to shareholders.

c) Other reserve

As per Modified Sanction Scheme MS-10 and MS-13 approved by the Board of Industrial Finance and
Reconstruction, the Company had issued 0% redeemable and non-convertible preference shares of ' 1,000
lakh to Atul Ltd (holding company) and received interest free secured loan of ' 1,128.89 lakh and interest free
unsecured loan of ' 539.58 lakh from Atul Ltd. These financial liabilities are measured at amortised cost and the
initial fair value difference is recognised as capital contribution from Atul Ltd.

i) Information about individual provisions and critical estimates

a) Compensated absences

The compensated absences cover the liability for earned leave. Out of the total amount disclosed above,
the amount of ' 1.27 lakh (March 31, 2025: ' 0.73 lakh) is presented as current, since the Company does
not have an unconditional right to defer settlement for any of these obligations. However, based on past
experience, the Company does not expect all employees to take the full amount of accrued leave or require
payment within the next 12 months.

The Government of India has consolidated multiple existing labour legislations into a unified framework comprising
four labour codes collectively referred to as the ‘New Labour Codes' on November 21, 2025. Accordingly, the Company
has assessed the impact of these changes and based on certain estimates and actuarial valuation, has made an
incremental provision of ' 8.94 lakh under employee benefit expenses in the Standalone Financial Statements for the
year ended on March 31, 2026, considering information available. The Company continues to monitor the finalisation
of the Central I State rules and clarifications from the Government on the New Labour Codes and will recognise the
impact of change in the estimate in that period, as needed.

Note 28.3 (F) Terms and conditions

1. Sales to and purchases from related parties were made on normal commercial terms and conditions and at
prevailing market prices or where market price is not available, at cost plus margin.

2. Transactions relating to dividends were on the same terms and conditions that applied to other shareholders.

3. All outstanding balances are unsecured and are repayable in cash and cash equivalent.

Note 28.5 Employee benefit obligations
Funded schemes

a) Defined contribution plans
Gratuity

The gratuity fund is maintained with the Life Insurance Corporation of India and Bajaj Allianz Life Insurance under
Group Gratuity scheme. Every employee is entitled to a benefit equivalent to the last drawn salary of 15 days
for each completed year of service as per Payment of Gratuity Act, 1972 till November 20, 2025, and thereafter
the Code on Social Security, 2020. Accordingly, Gratuity is calculated based on wages with applicable cap as
per prevailing Act or the Company scheme, whichever is more beneficial to employees. Gratuity is payable at the
time of separation or retirement from the Company, whichever is earlier.

The benefit vests after five years of continuous service.The defined benefit plan for gratuity of the Company is
administered by separate gratuity funds that are legally separate from the Company. The trustees nominated by
the Company are responsible for the administration of the plan. The funding of these plans are based on gratuity
fund's actuarial measurement framework set out in the funding policies of the plan. Employees do not contribute
to any of these plans.

The above sensitivity analysis 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 method
(present value of the defined benefit obligation calculated with the projected unit credit method at the end of the
reporting period) has been applied while calculating the defined benefit liability recognised in the Standalone
Balance Sheet.

The methods and types of assumptions used in preparing the sensitivity analysis did not change as compared
to the previous year.

Risk exposure

Through its defined contribution plans, the Company is exposed to a number of risks, the most significant of
which are detailed below:

i) Interest rate risk

A fall in the discount rate that is linked to the government securities rate will increase the present value of
the liability requiring higher provision. A fall in the discount rate generally increases the mark to market value
of the assets depending on the duration of asset.

Note 28.5 Employee benefit obligations (continued)

ii) Salary risk

The present value of the defined benefit plan liability is calculated by reference to the future salaries of
members. As such, an increase in the salary of the members more than assumed level will increase the plan
liability.

iii) Investment risk

The present value of the defined benefit plan liability is calculated using a discount rate, which is determined
with reference to market yields at the end of the reporting period on government bonds. If the return on plan
asset is below this rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively balanced
mix of investments in government securities and other debt instruments.

iv) Concentration risk

Plan is having a concentration risk as all the assets are invested with two insurance company and a default
will wipe out all the assets. Although probability of this is very less as insurance companies have to follow
regulatory guidelines.

The Company actively monitors how the duration and the expected yield of the investments are matching
the expected cash outflows arising from the employee benefit obligations. It has not changed the processes
used to manage its risks from previous periods. Investments are well diversified, such that the failure of any
single investment will not have a material impact on the overall level of assets. A large portion of assets
consists of insurance funds; it also invests in corporate bonds and special deposit schemes. The plan asset
mix is in compliance with the requirements of the respective local regulations.

Expected contributions to post-employment benefit plans for the year ending March 31, 2027, are
' 2.89 lakh.

The weighted average duration of the defined benefit obligation is 8 years (2024-25: 10 years). The expected
maturity analysis of gratuity is as follows:

b) Other long-term benefits

Leave encashment is payable to eligible employees who have earned leaves, during the employment and | or on
separation as per the policy of the Company. Valuation in respect of leave encashment has been carried out by
an independent actuary, as at the Standalone Balance Sheet date, based on the following assumptions:

c) Defined contribution plans:Provident fund

State defined contribution plans

Employers' contribution to employees' state insurance
Employers' contribution to employees' pension scheme 1995

The provident fund and the state defined contribution plans are operated by the Regional Provident Fund
Commissioner. Under the scheme, the Company is required to contribute a specified percentage of payroll cost
to the retirement benefit scheme to fund the benefits. These funds are recognised by the income tax authorities.
The contribution of the Company to the provident fund and other contribution plans for all employees is charged
to the Standalone Statement of Profit and Loss.

The Company has recognised the following amounts in the Standalone Statement of Profit and Loss for the year
(refer Note 24):

The carrying amount of financial assets and financial liabilities measured at amortised cost in the financial statements
are a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts
would be significantly different from the values that would eventually be received or settled.

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 Standalone Financial Statements. To provide an indication about the reliability of the inputs
used in determining fair value, the Company has classified its financial instruments into the three levels prescribed
in the Indian Accounting Standard. An explanation of each level follows underneath the table:

There were no transfers between any levels during the year.

Level 1: This hierarchy includes financial instruments measured using quoted prices. The fair value of all equity
instruments that are traded on the stock exchanges is valued using the closing price as at the reporting period.

Level 2: The fair value of financial instruments that are not traded in an active market (for example 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. The mutual fund units are valued using the closing
net assets value. If all significant inputs required to fair value an instrument are observable, the instrument is
included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included
in level 3.

Note 28.6 Fair value measurements (continued)

b) Valuation techniques used to determine fair value

Specific valuation techniques used to value financial instruments include:

i) the use of quoted market prices or dealer quotes for similar instruments

ii) the fair value of the remaining financial instruments is determined using discounted cash flow analysis

c) Valuation processes

The Finance department of the Company includes a team that performs the valuations of financial assets and
liabilities with assistance from independent external experts when required, for financial reporting purposes,
including level 3 fair values.

The carrying amounts of trade receivables, cash and cash equivalents, other receivables, trade payables, employee
benefits payable, payable towards expenses, creditors for capital goods and security deposits are considered to
be the same as their fair values due to the current and short-term nature of such balances.

For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.
Note 28.7 Financial risk management

The business activities of the Company are exposed to a variety of financial risks, namely liquidity risk, market risk
and credit risk. Responsibility for the establishment and oversight of the risk management framework lies with the
Senior Management of the Company. The Company has an internal team who are responsible for developing and
monitoring the risk management policies of the Company. The key risks and mitigating actions are also placed before
the Board of the Company. The 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 activities of the Company.

This note explains the risks which the Company is exposed to and how the Company manages the risks in the
Standalone Financial Statements.

a) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty fails to meet its contractual
obligations. Credit risk arises from cash and cash equivalents, financial assets measured at amortised cost or
fair value through profit and loss and deposits with banks and financial institutions, as well as credit exposures
to trade | non-trade customers including outstanding receivables.

i) Credit risk management

Credit risk is managed through the policy surrounding Credit Risk Management.

ii) Provision for expected credit losses

The Company provides for expected credit loss based on the following:

Trade receivables

Credit risk with respect to trade receivables is limited. As trade receivables consist of few customers, for
which ongoing credit evaluation is performed on the financial condition of the trade receivables. Historical
experience of collecting receivables of the Company is supported by low level of past default and hence the
credit risk is perceived to be low.

Of the trade receivables balance at the end of the year, ' 627.77 lakh (March 31, 2025: ' 260.17 lakh) is
due from related parties. Apart from this, the Company does not have significant credit risk exposure to any
single counterparty or any group of counterparties having similar characteristics. The Company defines
counterparties as having similar characteristics if they are related entities.

b) Liquidity risk

Ultimate responsibility for liquidity risk management rests with the Board of Directors, who has approved
an appropriate liquidity risk management framework for short, medium and long-term funding and liquidity
management requirements of the Company. The Management monitors rolling forecasts of the liquidity position
of the Company and cash and cash equivalents on the basis of expected cash flows and manages liquidity risk
by continuously monitoring forecast and actual cash flows and by matching the maturity profiles of financial
assets and liabilities.

The following table shows the maturity analysis of financial liabilities of the Company based on contractually
agreed undiscounted cash flows including contractual interest payment, as at the Standalone Balance Sheet date:

c) Market risk

i) Cash flow and fair value interest rate risk

Maturity analysis of financial liabilities of the Company is based on contractually agreed undiscounted cash
flows as at the Balance Sheet date:

Borrowings of the Company was from Axis Bank Ltd and was mainly exposed to interest rate risk due to its
variable interest rate borrowings. The interest rate risk arises due to uncertainties about the future market
interest rate of these borrowings.

As an estimation of the approximate impact of the interest rate risk, with respect to financial instruments, the
Company has calculated the impact of a 25 bps change in interest rates. A 25 bps increase in interest rates
would have led to approximately an additional impact of ' Nil lakh (2025-26: ' Nil lakh). A 25 bps decrease
in interest rates would have led to an equal but opposite effect.

ii) Price risk
Exposure

The Company is mainly exposed to the price risk due to its investments in mutual funds. The price risk arises
due to uncertainties about the future market values of these investments. In order to manage its price risk
arising from investments in equity instruments, the Company maintains its portfolio in accordance with the
framework set by the risk management policies.

Note 28.8 Segment information

In accordance with Ind AS 108, ‘Operating Segments', segment information has been given in the Consolidated Financial
Statements of Amal Ltd and therefore, no separate disclosure on segment information is given in the Standalone
Financial Statements.

The primary objective of capital management is to maximise shareholder value, safeguard business continuity and
support the growth of the Company. It determines the capital requirement based on annual operating plans and
long-term and other strategic investment plans. The funding requirements are met through equity and operating
cash flows generated. The Company is not subject to any externally imposed capital requirements (refer Note 28.12
(b) for debt- equity ratio).

Note 28.14 Borrowings

i) Security details:

Working capital loans repayable on demand from banks (March 31, 2026: ' Nil lakh, March 31, 2025: ' Nil lakh)
is secured by hypothecation of tangible current assets, namely, inventories and book debts of the Company as a
whole and also secured by second and subservient charge movable property, plant and equipment of the Company.

ii) The quarterly returns or statements comprising (stock statements, book debt, unpaid creditors statement for
stock and other stipulated financial information) filed by the Company with such banks are in agreement with
the unaudited books of account of the Company of the respective quarters.

iii) The carrying amount of assets hypothecated as security for borrowing limits are:

Note 28.15 Other statutory information (required by schedule III to the Companies Act, 2013)

a) The Company has not entered into any such transaction which is not recorded in the books of accounts that has
been surrendered or disclosed as income during the year in tax assessments under the Income tax Act, 1961.

b) The Company has complied with the number of layers prescribed under Clause (87) of Section 2 of the Act read
with the Companies (Restriction on number of Layers) Rules, 2017.

c) The Company is not declared wilful defaulter by any bank or financial institution or other lender.

d) The Company has not traded or invested in crypto currency or virtual currency during the current year or previous
year.

e) No proceedings have been initiated or are pending against the Company for holding any benami property under
the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made there under.

f) No loans or advances in the nature of loans are granted to promoters, directors, key managerial personnel and
the related parties (as defined under the Companies Act, 2013) either severally or jointly with any other person.

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

Note 28.16 Utilisation of loans, advances and equity investment in entities

The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign

entities (intermediaries) with the understanding that the intermediary shall:

a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf
of the Company (ultimate beneficiaries) or

b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

The Company has not received any funds 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 to or on behalf of the ultimate beneficiaries

Proposed dividend on equity shares is subject to the approval of the shareholders of the Company at the ensuing
Annual General Meeting and not recognised as liability as at the Balance Sheet date.

Note 28.18 Relationship with struck off companies

The Company has no transactions with the companies struck off under Companies Act, 2013 or Companies Act, 1956.
Note 28.19 Offsetting financial assets and liabilities

The Company has not offset any financial asset and financial liability. It offsets a financial asset and a financial liability
when it currently has a legal enforceable right to set-off the recognised amounts and it intends either to settle on a
net basis, or to realise the asset and settle the liability simultaneously.

Note 28.20 Events occurring after Balance Sheet date

The Company evaluated subsequent events upto the date of the standalone financial statements were available for
issuance, and determined that there were no additional material subsequent events requiring disclosure.

Note 28.21 Foreign currency exposure

There was no foreign currency exposure as on March 31, 2026.

Note 28.22 Rounding off

Figure less than ' 500 have been shown as ‘0.00' in the relevant notes in these Standalone Financial Statements.
Note 28.23 Authorisation for issue of the Standalone Financial Statements

The Standalone Financial Statements were authorised for issue by the Board of Directors on April 22, 2026.