1 Company information

DOMS Industries Limited (formerly known as DOMS Industries
Private Limited) ('DOMS' or 'the Company') has its registered
office at J-19, G.I.D.C, Umbergaon, Gujarat 396171. The
Company was incorporated on October 24, 2006 under
erstwhile Companies Act, 1956. On April 21, 2017, the Company
changed its name from Writefine Products Private Limited to
DOMS Industries Private Limited and thereafter, the name of
the Company was changed to "DOMS Industries Limited” and
a fresh certificate of incorporation consequent upon change of
name was issued by the ROC on August 03, 2023.

The Company is primarily engaged in manufacturing, marketing,
trading and distribution of stationery products. The Company
sells its products in India and in international markets. The
Company has its manufacturing facilities located at Umbergaon,
Gujarat and Bari Brahma, Jammu & Kashmir.

2 Basis of Preparation

i) Compliance with Ind AS

The Standalone Financial Statements of the Company have
been prepared in compliance with Indian Accounting Standards
(hereinafter referred to as the 'Ind AS') notified under Section
133 of the Companies Act, 2013 (the Act), [Companies (Indian
Accounting Standards) Rules, 2015] and other relevant
provisions of the Act.

The Standalone Financial Statements have been prepared on
accrual and going concern basis.

ii) Historical Cost Convention

The Standalone Financial Statements have been prepared
under the historical cost convention except for certain financial
instruments measured at fair value as explained in the
accounting policies. Historical cost is generally based on the
fair value of the consideration given in exchange for goods and
services at the time of their acquisition.

iii) New and amended standards adopted by the Company

The Ministry of Corporate Affairs vide notifications dated May
7, 2025 and August 13, 2025 notified the Companies (Indian
Accounting Standards) Amendment Rules, 2025 and the
Companies (Indian Accounting Standards) Second Amendment
Rules, 2025, effective for annual reporting periods beginning on
or after April 1, 2025:

a) Classification of Liabilities as Current or Non-current
and Non-current Liabilities with Covenants -
Amendments to Ind AS 1

As a result of the adoption of the amendments to Ind
AS 1, the Company changed its accounting policy for the
classification of borrowings:

"Borrowings are classified as current liabilities unless,
at the end of the reporting period, the Company has a

right to defer settlement of the liability for at least 12
months after the reporting period. Covenants that the
Company is required to comply with, on or before the end
of the reporting period, are considered in classifying loan
arrangements with covenants as current or non-current.
Covenants that the Company is required to comply with
after the reporting period do not affect the classification.”

This new policy did not result in a change in the
classification of borrowings. The Company did not make
retrospective adjustments as a result of adopting the
amendments to Ind AS 1.

b) Supplier Finance Arrangements - Amendments to Ind AS
7 and Ind AS 107

c) International Tax Reform - Pillar Two Model Rules -
Amendments to Ind AS 12

The Company is not within the scope of the OECD Pillar
Two Model Rules, as Pillar Two legislation has not yet
been enacted in any of the jurisdictions in which the
Company operates.

d) Lack of Exchangeability - Amendments to Ind AS 21

The amended Ind AS 21 have added requirements to help
entities to determine whether a currency is exchangeable
into another currency, and the spot exchange rate to
use where it is not. These amendments did not have
any material impact on the amounts recognised in prior
periods and are not expected to significantly affect the
current or future periods.

iv) Standards issued but not yet effective

Classification of Liabilities as Current or Non-current and Non¬
current Liabilities with Covenants - Amendments to Ind AS 1

This amendment also includes specific provisions that will take
effect for reporting periods beginning on or after April 1 2026,
as outlined below.

Under the existing Ind AS 1, where there is a breach of a
material provision of a long-term loan arrangement on or
before the end of the reporting period with the effect that the
liability becomes payable on demand on the reporting date,
the entity does not classify the liability as current, if the lender
agreed, after the reporting period and before the approval of
the financial statements for issue, not to demand payment as a
consequence of the breach.

However, the amended requirements stipulate that entities
will no longer be permitted to consider lender waivers that
are granted after the reporting date but before the financial
statements are approved for the purpose of classification of
loans. This amendment is required to be applied retrospectively
in accordance with Ind AS 8.

The Company does not expect this amendment to have an
impact on its operations or financial statements.

v) Current vs non-current classification

All assets and liabilities have been classified as current or non¬
current as per the Company's operating cycle and other criteria
set out in the Schedule Ill (Division II) to the Act. Based on the
nature of products/services and the time between the delivery
of products and their realisation in cash and cash equivalents,
the Company has ascertained its operating cycle as 12 months
for the purpose of current or non-current classification of asset
and liabilities.

Assets:

An asset is classified as current when it satisfies any of the
following criteria:

a) It is expected to be realised in, or is intended for sale or
consumption in, the Company's normal operating cycle;

b) It is held primarily for the purpose of being traded;

c) It is expected to be realised within 12 months after the
reporting date; or

d) It is cash or cash equivalent unless it is restricted from
being exchanged or used to settle a liability for at least 12
months after the reporting date.

Current assets include the current portion of non-current
financial assets. All other assets are classified as non-current.

Liabilities:

A liability is classified as current when it satisfies any of the
following criteria:

a) It is expected to be settled in the Company's normal
operating cycle;

b) It is held primarily for the purpose of being traded;

c) It is due to be settled within 12 months after the
reporting date; or

d) The Company does not have an unconditional right to
defer settlement of the liability for at least 12 months
after the reporting date.

Current liabilities include current portion of non-current
financial liabilities. All other liabilities are classified
as non-current.

Deferred tax assets and liabilities are classified as non-current
assets and liabilities.

Operating cycle:

Operating cycle is the time between the acquisition of assets
for processing and their realisation in cash or cash equivalents.
Based on the nature of the products and the time between

3 Property, Plant and Equipment
Accounting Policy

Freehold land is carried at historical cost. All other property, plant and equipment is recognised at historical cost less accumulated
depreciation and accumulated impairment losses, if any.

Depreciation methods, estimated useful lives and residual value

Depreciation is provided on a pro-rata basis on the straight line method over the following useful lives based
on management's technical evaluation.

4 Right-of-use Assets recognised under Ind AS 116 Leases
Accounting Policy

Company as lessee

The Company has leasing arrangements for land, office premises and factory buildings.

Relevant contracts might 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.

Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not
impose any covenants other than the security interests in the leased assets that are held by the lessor.

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

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

If a readily observable amortising loan rate is available to the individual lessee (through recent financing or market data) which has a similar
payment profile to the lease, then the Company uses that rate as a starting point to determine the incremental borrowing rate.

Critical judgement 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 (or periods after termination options) are only included in the
lease term if the lease is reasonably certain to be extended (or not terminated).

The lease term is reassessed if an option is actually exercised (or not exercised) or the Company becomes obliged to exercise (or not
exercise) it. 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.

Financial Assets

Accounting Policy

Classification of financial assets at amortised cost

The Company classifies its financial assets at amortised cost only if both of the following criteria are met:

- the asset is held within a business model whose objective is to collect the contractual cash flows, and

- the contractual terms give rise to cash flows that are solely payments of principal and interest.

Financial assets classified at amortised cost comprise trade receivables, loans, investments in subsidiaries and associates.

See note 48(d) for other accounting policies relevant to Financial Assets.

6 Non-Current Investments

Investment in Subsidiaries and associate

The Company considers an investee company as a subsidiary company when it controls the investee company. Control is achieved when
the Company is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns
through its power over the investee. Specifically, the Company controls an investee if, and only if, the Company has:

• Power over the investee (i.e., existing rights that give it the current ability to direct the relevant activities of the investee)

• Exposure, or rights, to variable returns from its involvement with the investee

• The ability to use its power over the investee to affect its returns

Investments in subsidiaries and associate are carried at cost less accumulated impairment losses, if any. Where an indication of impairment
exists, the carrying amount of the investment is assessed. Where the carrying amount of an investment is greater than its estimated
recoverable amount, it is written down immediately to its recoverable amount and the difference is recognised in the Standalone Statement
of Profit and Loss. On disposal of investment, the difference between the net disposal proceeds and the carrying amount is charged or
credited to the Standalone Statement of Profit and Loss under 'Other Expenses' or 'Other Income'.

10 Trade Receivables
Accounting Policy

Trade receivables are amounts due from customers for goods sold or services performed in the ordinary course of business and reflect the
Company's unconditional right to consideration.

Trade receivables are recognised initially at the transaction price as they do not contain significant financing components. The Company
holds the trade receivables with the objective of collecting the contractual cash flows and therefore measures them subsequently at
amortised cost using the effective interest method, less loss allowance.

For trade receivables and contract assets, the Company applies the simplified approach for recognition of impairment loss allowance as per
Ind AS 109, which requires expected lifetime losses to be recognised from initial recognition of the receivables.

Terms/Rights attached to Equity Shares

The Company has a single class of equity shares. Accordingly, all equity shares rank equally with regards to dividends and share in the
Company's residual assets. The equity shares are entitled to receive dividend as declared from time to time. Voting rights cannot be
exercised in respect of shares on which any call or other sums presently payable have not been paid. Failure to pay any amount called up
on shares may lead to forfeiture of the shares. On winding up of the Company, the holder of equity shares will be entitled to receive the
residual assets of the Company, remaining after distribution of all preferential amounts in proportion to the number of equity shares held.

d) The Company during the preceding 5 years

i) Has not allotted shares pursuant to contracts without payment received in cash.

ii) Has not issued shares without payment of cash except for issue of Bonus shares, the Board of Directors, at its meeting held on July
03, 2023, approved a bonus issue of one hundred and fifty new equity shares for every one share held on the record date. This was
sanctioned by the shareholders through a special resolution dated July 03, 2023. Subsequently, through a Board resolution dated
July 06, 2023, the Company allotted 55,877,700 equity shares of H 10 each as bonus shares to the existing equity shareholders

of the Company.

Nature ana purpose ot reserve

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.

Employee Stock options: The share-based payments reserve is used to recognise the grant date fair value of options issued to employees
under Employee stock option plan 2023.

Retained Earnings: The amount of undistributed profits that can be distributed by the Company as dividends to its equity shareholders in
accordance with the requirements of the Companies Act, 2013.

18 Non-Current Borrowings (Contd..)
b) The terms of the term loan are as follows:

i) Secured term loan from bank amounting to H 1,000.00 lakhs (March 31, 2025: H 1,000.00 lakhs), outstanding as at March 31, 2026 H
398.40 lakhs (March 31, 2025 : H 603.32 lakhs) is repayable in 60 equated monthly installments starting from January 07, 2023 with
last installment payable on January 07, 2028. The rate of interest is bank reference rate plus spread of 1% to 1.5% p.a. Term Loans are
secured by charge on book debts, stock, plant & machinery and certain identified immovable properties of the Company.

ii) Secured term loan from bank amounting to H 2,500.00 lakhs (March 31, 2025: H 2,500.00 lakhs), outstanding as at March 31, 2026 H
1,918.34 lakhs (March 31, 2025 : 2,329.68 lakhs) is repayable in 84 equated monthly installments starting from March 07, 2023 with
last installment payable on Februay 07, 2030. The rate of interest is bank reference rate plus spread of 1% to 1.5% p.a. Term Loans are
secured by charge on book debts, stock and plant & machinery and certain identified immovable properties of the Company.

22 Trade Payables (Contd..)

Note:

a) There are no disputed trade payables as at March 31, 2026 and March 31, 2025.

b) The Company has not entered into any Supplier Financing Arrangements and therefore additional disclosures under Ind AS 7
Statement of Cash Flows"/ Ind AS 107 "Financial Instruments" are not required to be presented.

Additional disclosure as per Micro, Small and Medium Enterprises Development (MSMED) Act, 2006

Details of dues to Micro, Small and Medium Enterprises Development Act, 2006

27 Revenue from Operations

Accounting Policy

i) Measurement of Revenue

Revenue is measured based on the transaction price, which is the consideration, adjusted for discounts and incentive schemes, if any, as
per contracts with customers. Transaction price is the amount of consideration to which the Company expects to be entitled in exchange for
transferring goods to a customer.

Transaction prices exclude taxes and duties collected on behalf of Government.

ii) Performance Obligations:

Revenue from contracts with customers involving sale of products is recognised at a point in time when control of the product has been
transferred at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or
services, and there are no unfulfilled obligation that could affect the customer's acceptance of the products and the Company retains
neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold. At
contract inception, the Company assesses the goods or services promised in a contract with a customer and identify as a performance
obligation each promise to transfer to the customer.

The point of time of transfer of control to customers depends on the terms of the trade- FOB, CIF or door delivery, ex-works, etc."

A contract liability (unearned revenue) is recognised if a payment is received, or a payment is due (whichever is earlier) from a customer
before the Company transfers the related goods or services and the Company is under an obligation to provide only the goods under the
contract. Contract liabilities are recognised as revenue when the Company performs obligation under the contract (i.e., transfers control of
the related goods to the customer).

iii) Schemes

The Company operates several sales incentive programmes wherein the customers are eligible for several benefits on achievement of
underlying conditions as prescribed in the scheme programme. Revenue from contract with customer is presented deducting cost of
all these schemes.

iv) Financing Components:

The Company does not have any contracts where the period between the transfer of the promised goods to the customer and payment
by the customer exceeds one year. As a consequence, the Company does not adjust any of the transaction prices for a significant financing
component or the time value of money.

v) Export Incentives

Export incentives such as duty drawback, Credit under RODTEP, etc., are recognised as income when the right to receive them is
established, and there is no significant uncertainty regarding their realisation.

vi) Royalties

Royalty income is recognised on an accrual basis in accordance with the substance of the relevant agreement.

vii) Scrap Sales

Revenue from the sale of waste/scrap is recognised when the control is transferred to the buyer, usually on delivery of the waste/ scrap.