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

i) 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 Company, which in turn invests
in eligible securities to meet the liability as and when it become 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 tangible assets: Note 1 (f)

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

iv) Impairment: Note 1 (i)

Note 10 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. 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 dividend proposed by the Board, if any, is subject to the approval of shareholders in the ensuing
Annual General Meeting, except in case of interim dividend.

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 (promoter) 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 significant estimates

a) Compensated absences:

The compensated absences cover the liability for earned leave. Out of the total amount disclosed above,
the amount of ' 0.73 lakh (March 31, 2024: ' 1.29 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.

Note 27.3 Related party disclosures (continued)

Note 27.3 (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 27.4 Current and deferred tax

The major components of income tax expense for the years ended March 31, 2025 and March 31, 2024,
are:

Note 27.5 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 in line with the Payment of Gratuity Act, 1972 or the Company
scheme, whichever is more beneficial. 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 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.

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.

Note 27.5 Employee benefit obligations (continued)

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, 2026, are
' 0.06 lakh.

The weighted average duration of the defined benefit obligation is 10 years (2023-24: 07 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:

Note 27.5 Employee benefit obligations (continued)

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 23):

¹Excludes investments in subsidiary company which are carried at cost and hence are not required to be disclosed as per Ind
AS 107 “Financial Instruments Disclosures".

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.

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.

Note 27.7 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 constituted a Risk Management Committee,
which is 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 account 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, ' 260.17 lakh (March 31, 2024: ' 178.26 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 Group 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 (2023-24: ' 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 27.14 Capital management

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 27.13 (b) for debt- equity ratio).

Note 27.15 Borrowings

i) Security details:

Working capital loans repayable on demand from banks (March 31, 2025: ' Nil lakh, March 31, 2024:
' 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 on immovable and movable
assets of the Company.

ii) Quarterly statement of current assets filed with banks during the year are in agreement with the books of
accounts.

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

Note 27.16 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 financial
year.

e) The Company has not revalued its property, plant and equipment (including Right-of-use assets) or intangible
assets or both during the year.

f) 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.

g) 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.

h) 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.

i) There were no loans, advances and investments made in intermediary company.

Note 27.17 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 group (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

Note 27.18 Relationship with struck off companies

There were no transactions or balances with struck off companies.

Note 27.19 Dividend on equity shares

The Board of Directors of the Company in its meeting held on April 18, 2025 has recommended a final dividend of
10% (' 1.00 per share) for year 2024-25 (year 2023-24 ' Nil) which is subject to the approval of the shareholders
at the ensuing Annual General Meeting.

Note 27.20 Events occuring after Balance Sheet date

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

Note 27.21 Foreign currency exposure

There was no foreign currency exposure as on March 31, 2025.

Note 27.22 Rounding off

Figure less than ' 500 have been shown as ‘0.00' in the relevant notes in these Standalone Financial
Statements.

Note 27.23 Authorisation for issue of the Standalone Financial Statements

The Standalone Financial Statements were authorised for issue by the Board of Directors on April 18, 2025.

In terms of our report attached For and on behalf of the Board of Directors

For Deloitte Haskins & Sells LLP

Chartered Accountants

Sunil Lalbhai

Ketan Vora Yogesh Vyas Chairman

Partner Chief Financial Officer (DIN: 00045590)

Rajeev Kumar

Mumbai Ankit Mankodi Managing Director

April 18, 2025 Company Secretary (DIN: 07731459)