(k) Provisions and contingent liabilities
General:

Provisions are recognised when the
Company has a present obligation (legal
or constructive) as a result of a past event,
it is probable that an outflow of resources
embodying economic benefits will be
required to settle the obligation and a
reliable estimate can be made of the amount
of the obligation. The expense relating to a
provision is presented in the statement of
profit and loss, net of any reimbursement.

If the effect of the time value of money is
material, provisions are discounted using
a current pre-tax rate that reflects, when
appropriate, the risks specific to the liability.
When discounting is used, the increase in
the provision due to the passage of time is
recognised as a finance cost.

Warranty provisions

The Company provides warranties for
general repairs of defects that existed at the
time of sale, as required by law. Provisions
related to these assurance-type warranties
are recognised when the product is sold to
the customer. Initial recognition is based on
historical experience. The initial estimate of
warranty-related costs is revised annually.
The timing of outflows will vary as and when
warranty claim will arise being typically up to
one year.

Contingent liabilities

A contingent liability is a possible obligation
that arises from past events whose existence
will be confirmed by the occurrence or
non-occurrence of one or more uncertain
future events beyond the control of the
Company or a present obligation that is not

recognised because it is not probable that
an outflow of resources will be required to
settle the obligation. A contingent liability
also arises in extremely rare cases where
there is a liability that cannot be recognised
because it cannot be measured reliably. The
Company does not recognize a contingent
liability but discloses its existence in the
financial statements.

(l) Retirement and other employee
benefits

Retirement benefit in the form of provident
fund is a defined contribution scheme. The
Company has no obligation, other than
the contribution payable to the provident
fund. The Company recognizes contribution
payable to the provident fund scheme as
an expense, when an employee renders
the related service. If the contribution
payable to the scheme for service received
before the balance sheet date exceeds
the contribution already paid, the deficit
payable to the scheme is recognised as a
liability after deducting the contribution
already paid. If the contribution already paid
exceeds the contribution due for services
received before the balance sheet date,
then excess is recognized as an asset to the
extent that the pre-payment will lead to, for
example, a reduction in future payment or a
cash refund.

The Company operates a defined benefit
gratuity plan, which requires contributions
to be made to a separately administered
fund. The contributions are made to the
Ajax Engineering Private Limited Employees
Gratuity Trust managed by a private sector
insurer viz; Kotak Mahindra Life Insurance Ltd.
The cost of providing benefits under
the defined benefit plan is determined
using the projected unit credit method.
The present value of the defined benefit
obligation is determined by discounting the
estimated future cash outflows by reference
to market yields at the end of the reporting
period on government bonds that have
term approximating the term of the related
obligation. Remeasurements, comprising
of actuarial gains and losses, the effect
of the asset ceiling, excluding amounts
included in net interest on the net defined

benefit liability and the return on plan
assets (excluding amounts included in net
interest on the net defined benefit liability),
are recognised immediately in the balance
sheet with a corresponding debit or credit to
retained earnings through OCI in the period
in which they occur. Remeasurements are
not reclassified to profit or loss in subsequent
periods.

Past service costs are recognised in profit or
loss on the earlier of:

• the date of the plan amendment or
curtailment, and

• the date that the Company recognises
related restructuring costs

Net interest is calculated by applying the
discount rate to the net defined benefit
liability or asset. The Company recognizes
the following changes in the net defined
benefit obligation as an expense in the
statement of profit and loss:

• service costs comprising current service
costs, past-service costs, gains and
losses on curtailments and non-routine
settlements; and

• net interest expense or income
Further, the Company also provides other
retirement benefits to certain eligible
employees for which the costs are provided
based on the actuarial valuation using the
projected unit credit method at the year-
end. Actuarial gain/loss are immediately
taken to the statement of profit and loss and
are not deferred.

Leave encashment/Compensated absences

Accumulated leave, which is expected to
be utilised within the next twelve months,
is treated as short-term employee benefit.
The Company measures the expected cost
of such absences as the additional amount
that it expects to pay as a result of the
unused entitlement that has accumulated
at the reporting date.

The Company treats accumulated leave
expected to be carried forward beyond twelve
months, as long-term employee benefit for
measurement purposes. Such long-term
compensated absences are provided for
based on the actuarial valuation using the

projected unit credit method at the year-
end. Actuarial gain/loss are immediately
taken to the statement of profit and loss and
are not deferred. The Company presents
the entire leave encashment provision as a
current liability in the balance sheet, since
it does not have an unconditional right to
defer its settlement for twelve months after
the reporting date.

(m) 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:

Initial recognition and measurement
All financial assets and liabilities are initially
measured at fair value. Transaction costs that
are directly attributable to the acquisition
or issue of financial assets and financial
liabilities (other than financial assets and
financial liabilities at fair value through profit
or loss) are added to or deducted from the
fair value measured on initial recognition of
financial asset or financial liability.
Subsequent measurement

• Financial assets at amortised cost
Financial assets are subsequently
measured at amortised cost using the
effective interest rate (EIR) method if
these financial assets are held within
a business whose objective is to hold
these assets to collect contractual cash
flows and the contractual terms of the
financial asset give rise on specified
dates to cash flows that are solely
payments of principal and interest on
the principal amount outstanding.
Amortised cost is calculated by taking
into account any discount or premium
on acquisition and fees or costs that
are an integral part of the EIR. The EIR
is included in finance income in the
profit or loss. The losses arising from
impairment are recognized in the profit
or loss including other comprehensive
income. This category generally applies
to trade and other receivables.

• Financial assets at fair value through
other comprehensive income

Financial assets are measured at fair
value through other comprehensive
income if these financial assets are held
within a business whose objective is
achieved by both collecting contractual
cash flows and selling financial assets
and the contractual terms of the
financial asset give rise on specified
dates to cash flows that are solely
payments of principal and interest on
the principal amount outstanding. Fair
value movements are recognised in
Other Comprehensive Income (OCI).

• Financial assets at fair value through
profit or loss

Financial assets are measured at fair
value through profit or loss unless it is
measured at amortised cost or at fair
value through other comprehensive
income on initial recognition. The
transaction costs directly attributable
to the acquisition of financial assets
at fair value through profit or loss are
immediately recognised in statement
of profit and loss.

• Derecognition

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

Interest income

Interest income on bank deposits and
bonds is recognised on a time proportion
basis taking into account the amount
outstanding and the applicable interest
rate.

For all financial instruments measured at
amortised cost, interest income is recorded
using the effective interest rate (EIR). EIR is
the rate that exactly discounts the estimated
future cash payments or receipts over the
expected life of the financial instrument
or a shorter period, where appropriate, to
the net carrying amount of the financial
asset or to the amortised cost of a financial
liability. When calculating EIR, the Company
estimates the expected cash flows by
considering all the contractual terms of the

financial instrument but does not consider
the expected credit losses. Interest income
is included in other income in the statement
of profit and loss.

Financial liabilities:

Initial recognition and measurement
The Company's financial liabilities include
trade and other payables and borrowings.

Financial liabilities are classified, at initial
recognition, as financial liabilities at fair value
through profit or loss, loans and borrowings,
payables as appropriate.

All financial liabilities are recognised initially
at fair value and, in the case of loans and
borrowings and payables, net of directly
attributable transaction costs.

Subsequent measurement

• Financial liabilities at fair value through
profit or loss

Financial liabilities at fair value through
profit or loss include financial liabilities
held for trading and financial liabilities
designated upon initial recognition
as at fair value through profit or loss.
Financial liabilities are classified as held
for trading if they are incurred for the
purpose of repurchasing in the near
term.

• Financial liabilities at amortised cost
(Loans and borrowings)

Financial liabilities are subsequently
measured at Amortised cost using the
effective interest method. Gains and
losses are recognized in profit or loss
when the liabilities are derecognised
as well as through the EIR Amortisation
process. Amortised cost is calculated
by taking into account any discount or
premium on acquisition and fees or costs
that are an integral part of the EIR. The
EIR amortisation is included in finance
cost in the statement of profit and loss.
For trade and other payables maturing
within one year from the balance sheet
date, the carrying amounts approximate
fair value due to the short maturity of
these instruments.

• Derecognition

A financial liability is derecognised
when the obligation under the liability

is discharged or cancelled or expires.
When an existing financial liability is
replaced by another from the same
lender on substantially different terms,
or the terms of an existing liability
are substantially modified, such an
exchange or modification is treated
as the derecognition of the original
liability and the recognition of a new
liability. The difference in the respective
carrying amounts is recognised in the
statement of profit or loss.

Offsetting of financial instruments

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

(n) Cash and cash equivalents

Cash and cash equivalent in the balance
sheet comprise cash in hand, cash at banks
and short-term deposits with an original
maturity of three months or less, that are
readily convertible to a known amount of
cash and subject to an insignificant risk of
changes in value.

For the purpose of the statement of cash
flows, cash and cash equivalents consist of
cash and short-term deposits, as defined
above, net of outstanding cash credits as
they are considered an integral part of the
Company's cash management.

(o) Dividend

The Company recognises a liability to make
cash distributions to equity holders of the
Company when the distribution is authorised
and the distribution is no longer at the
discretion of the Company. A corresponding
amount is recognised directly in equity. Final
dividends on shares are recorded as a liability
on the date of approval by the shareholders
and interim dividends are recorded as a
liability on the date of declaration by the
Company's Board of Directors.

(p) Earnings per share

Basic earnings per share is calculated by
dividing the net profit or loss attributable

to equity holders by the weighted average
number of equity shares outstanding during
the year.

Partly paid equity shares are treated as a
fraction of an equity share to the extent that
they are entitled to participate in dividends
relative to a fully paid equity share during
the reporting year. The weighted average
number of equity shares outstanding during
the year is adjusted for events such as bonus
issue and share split that have changed
the number of equity shares outstanding,
without a corresponding change in
resources.

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

(q) Segment reporting

Operating segments are reported in
a manner consistent with the internal
reporting provided to the Chief Operating
Decision Maker. The Chief Operating
Decision Maker is considered to be the Board
of Directors which makes strategic decisions
and is responsible for allocating resources
and assessing performance of the operating
segments.

(r) Share-based payments

Senior executives and employees of the
Company receive remuneration in the form
of share-based payments, whereby they
render services as consideration for equity
instruments (equity-settled transactions).
The cost of equity-settled transactions is
determined by the fair value at the date
when the grant is made using an appropriate
valuation model.

That cost is recognised, together with a
corresponding increase in share-based
payment (SBP) reserves in equity, over the
period in which the performance and/or
service conditions are fulfilled in employee
benefits expense. The cumulative expense
recognised for equity-settled transactions
at each reporting date until the vesting
date reflects the extent to which the vesting

of the fair value of the award is expensed
immediately through profit or loss.

2.3 Standards notified but not yet effective

The new and amended standards and
interpretations that are issued, but not
yet effective, up to the date of issuance of
the Company's financial statements are
disclosed below. The Company will adopt this
new and amended standard, when it become
effective.

(i) Ind AS 1 - Classification of Liabilities as
Current or Non-current and Non-current
Liabilities with Covenants
The amendment requires that if a covenant
breach is rectified after the reporting date, the
same will be treated as a non-adjusting event
and this amendment will be applicable from
annual reporting periods beginning on or after
the April 01, 2026

The amendments are not expected to have a
material impact on the Company's Financial
Statements.

2.4 New and amended standards

The Company applied for the first-time certain
standards and amendments, which are effective
for annual periods beginning on or after April 01,
2025. The Company has not early adopted any
standard, interpretation or amendment that has
been issued but is not yet effective.

(i) Lack of exchangeability - Amendments to
Ind AS 21

The Ministry of Corporate Affairs notified
amendments to Ind AS 21 The Effects of Changes
in Foreign Exchange Rates to specify how an
entity should assess whether a currency is
exchangeable and how it should determine a
spot exchange rate when exchangeability is
lacking. The amendments also require disclosure
of information that enables users of its financial
statements to understand how the currency
not being exchangeable into the other currency
affects, or is expected to affect, the entity's
financial performance, financial position and
cash flows.

The amendments are effective for annual reporting
periods beginning on or after April 01, 2025.

The application of Ind AS 21 does not have material
impact on the Company's Financial Statements.

(ii) Classification of liabilities as current or non¬
current and non-current liabilities with
Covenants - Amendments to Ind AS 1

The Ministry of Corporate Affairs notified
amendments to paragraphs 69 to 76 of Ind AS 1
Presentation of Financial Statements to specify
the requirements for classifying liabilities as
current or non-current. The amendments clarify:

• What is meant by a right to defer
settlement

• That a right to defer must exist at the end of
the reporting period

• That classification is unaffected by the
likelihood that an entity will exercise its
deferral right

• That only if an embedded derivative in
a convertible liability is itself an equity
instrument would the terms of a liability not
impact its classification

The amendments are effective for annual
reporting periods beginning on or after April 01,
2025.

The application of Ind AS 1 does not have material
impact on the Company's Financial Statements.

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

The Ministry of Corporate Affairs notified
amendments to Ind AS 7 Statement of Cash
Flows and Ind AS 107 Financial Instruments:
Disclosures to clarify the characteristics of
supplier finance arrangements and require
additional disclosure of such arrangements. The
disclosure requirements in the amendments are
intended to assist users of financial statements
in understanding the effects of supplier finance
arrangements on an entity's liabilities, cash flows
and exposure to liquidity risk.

The amendments are effective for annual
reporting periods beginning on or after
April 01, 2025.

The application of Ind AS 7 and 107 does not have
material impact on the Company's Financial
Statements.

(iv) International Tax Reform—Pillar Two Model
Rules - Amendments to Ind AS 12

The Ministry of Corporate Affairs notified
amendments to Ind AS 12 Income Taxes in

response to the OECD's BEPS Pillar Two rules and
include:

• A mandatory temporary exception to the
recognition and disclosure of deferred
taxes arising from the jurisdictional
implementation of the Pillar Two model
rules; and

• Disclosure requirements for affected entities
to help users of the financial statements
better understand an entity's exposure to
Pillar Two income taxes arising from that
legislation, particularly before its effective
date.

The mandatory temporary exception - the
use of which is required to be disclosed -
applies immediately. The remaining disclosure
requirements apply for annual reporting periods
beginning on or after April 01, 2025, but not for
any periods ending on or before March 31, 2026.
The amendments are effective for annual
reporting periods beginning on or after
April 01, 2025.

The application of Ind AS 12 does not have material
impact on the Company's Financial Statements.

3 SIGNIFICANT ACCOUNTING JUDGEMENTS,
ESTIMATES AND ASSUMPTION

The preparation of the Company's financial
statements requires management to make
judgements, estimates and assumptions that
affect the reported amounts of revenues,
expenses, assets and liabilities, and the
accompanying disclosures, and the disclosure
of contingent liabilities. Uncertainty about
these assumptions and estimates could result
in outcomes that require a material adjustment
to the carrying amount of assets or liabilities
affected in future periods.

Other disclosures relating to the Company's
exposure to risks and uncertainties includes:

• Capital management (note 39)

• Financial risk management objectives and
policies (note 38)

• Sensitivity analysis disclosures (notes 34 and 38)

Information about significant areas of estimation
and assumptions/uncertainty and judgements
in applying accounting policies that may have
significant impact are as follows:

(a) Measurement of defined benefit
obligations:

The cost of the defined benefit gratuity
plan and the present value of the gratuity

obligation are determined using actuarial
valuations. An actuarial valuation involves
making various assumptions that may differ
from actual developments in the future.
These include the determination of the
discount rate, future salary increases and
mortality rates. Due to the complexities
involved in the valuation and its long-term
nature, a defined benefit obligation is highly
sensitive to changes in these assumptions.
All assumptions are reviewed at each
reporting date.

The parameter most subject to change is the
discount rate. In determining the appropriate
discount rate, the management considers
the interest rates of government bonds in
currencies consistent with the currencies of
the post- employment benefit obligation.
The mortality rate is based on publicly
available mortality tables. Those mortality
tables tend to change only at interval in
response to demographic changes. Future
salary increases and gratuity increases are
based on expected future inflation rate and
past trends. Further details about gratuity
obligations are given in note 34.

(b) Leases - estimating the incremental
borrowing rate:

The Company cannot readily determine the
interest rate implicit in the lease, therefore, it
uses its incremental borrowing rate (IBR) to
measure lease liabilities. The IBR is the rate
of interest that the Company would have to
pay to borrow over a similar term, and with a
similar security, the funds necessary to obtain
an asset of a similar value to the right-of-use
asset in a similar economic environment.

(c) Leases - assumptions while considering
lease term:

The Company determines the lease term
as the agreed tenure of the lease, together
with any periods covered by an option to
extend the lease if it is reasonably certain
to be exercised, or any periods covered
by an option to terminate the lease, if it is
reasonably certain not to be exercised. After
the commencement date, the Company
reassesses the lease term if there is a
significant event or change in circumstances
that is within its control and affects its ability
to exercise or not to exercise the option to
renew or to terminate (e.g., construction
of significant leasehold improvements or
significant customisation to the leased
asset).

(d) Provision for product warranties:

The product warranty obligations and
estimations thereof are determined using
historical information on the type of
product, nature, frequency and average
cost of warranty claims and the estimates
regarding possible future incidences of
product failures. Changes in estimated
frequency and amount of future warranty
claims, which are inherently uncertain, can
materially affect warranty expense.

(e) Provision for expected credit loss on
trade receivables:

The measurement of expected credit loss
reflects a probability-weighted outcome,
the time value of money and the best
available forward-looking information. The
correlation between historical observed
default rates, forecast economic conditions
and expected credit loss is a significant
estimate. The amount of expected credit
loss is sensitive to changes in circumstances
and forecasted economic conditions. The
Company's historical credit loss experience
and forecast of economic conditions may
not be representative of the actual default in
the future.

(f) Share-based payments:

In accordance with the Ind AS 102 Share
Based Payments, the cost of equity-settled
transactions is measured using the fair value
method. The cumulative expense recognised
for equity-settled transactions at each
reporting date until the vesting date reflects
the extent to which the vesting period has
expired and the Company's best estimate
of the number of equity instruments that
will ultimately vest. The expense or credit
recognised in the Statement of profit and
loss including other comprehensive income/
loss for a year represents the movement
in cumulative expense recognised as at
the beginning and end of that year and is
recognised in employee benefits expense.

(c) Terms, rights, preferences and restrictions attached to equity shares:

The Company has only one class of equity shares having par value of ' 1 per share. Each holder of equity
shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees.
The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the
ensuing Annual General Meeting. In the event of liquidation of the Company, the holders of equity
shares will be entitled to receive remaining assets of the Company, after distribution of all preferential
amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

(e) Aggregate number of equity shares issued as bonus, shares issued for consideration other than
cash and shares bought back during the period of five years immediately preceding the reporting
date:

During the year ended March 31, 2023, the Company had issued bonus shares aggregating to 858,051 in
accordance with Section 63 of the Companies Act, 2013 in the ratio of 3:1 to all equity shareholders with
equity shares of face value of ' 100 each on November 23, 2022.

The Company has not issued shares for consideration other than cash or bought back shares during
the period of five years immediately preceding the reporting date except as disclosed above.

(f) Shares reserved for issue under options

For details of shares reserved for issue under the employee stock option plan (ESOP), refer note 36.

Nature and purpose of reserves

(a) Pertains to capital reserve created on account of business combination during the year ended
March 31, 2019 as per the requirements of Ind AS 103 - Business Combinations.

(b) Under the erstwhile Companies Act, 1956, general reserve was created through an annual transfer of
net income at a specified percentage in accordance with applicable regulations. Such amount can be
utilised in accordance with the specific requirements of Companies Act, 2013.

(c) Retained earnings are the profits/(loss) that the Company has earned/incurred till date, less any transfers
to general reserve, dividends or other distributions paid to shareholders. Retained earnings include re¬
measurement gain/(loss) on defined benefit plans, net of taxes that will not be reclassified to Statement
of Profit and Loss.

(d) The Company recognises changes in the fair value of debt instruments held with business objective
of collect and sell in other comprehensive income. These changes are accumulated within the debt
instruments through other comprehensive income within equity. The Company transfers amounts
from this reserve to the statement of profit and loss when the debt instrument is sold. Any impairment
loss on such instruments is reclassified immediately to the statement of profit and loss.

(e) Employee stock option outstanding reserve is used to record the fair value of equity-settled share
based payment transactions with employees.

(a) The working capital demand loan from SBI with the overall sanctioned facility of loan is ' 49.50 Million
(March 31, 2025: ' 220 Million) (fund based) and ' Nil Million (March 31, 2025: ' 70 Million) (non-fund
based) repayable on demand as on March 31, 2026. The lending rate is based on marginal cost of funds
(MCLR) plus 0.50%. The loan is secured against inventories, trade receivables and other current assets.
Cash collateral in the form of investment in SBI Mutual Fund. As at March 31, 2026, the Company has
unavailed limit of ' 49.50 Million (March 31, 2025: ' 272.52 Million) of undrawn committed borrowing
facilities under this facility.

Secured cash credit from banks contain certain financial covenants relating to adverse deviation in
respect of any two of the following financial parameters (DSCR, Interest coverage ratio, FACR, Debt/

EBIDTA) and attracts penal interest. It also contains non-financial covenants. The Company has satisfied
all the covenants prescribed in the terms of bank loan. The Company has not defaulted on any interest
payable.

(b) (i) The working capital demand loan from ICICI bank with the overall sanctioned facility of ' 50 Million
(March 31, 2025: ' 50 Million) with a tenor of 180 days. The lending rate is based on MCLR plus spread
(MCLR plus 0.55%). The sanctioned facilities are unsecured.

(ii) The working capital demand loan from Kotak Mahindra bank with the overall sanctioned facility
of ' 150 Million (March 31, 2025: ' 150 Million) with a tenor of 90 days (including cash credit of
' 10 Million and Letter of credit, Standby Letter of Credit of ' 30 Million repayable on demand, MTM
limit of ' 40 Million). The lending rate is based on MCLR plus spread. The sanctioned facilities are
unsecured.

(iii) The working capital demand loan from Citi bank with the overall sanctioned facility of ' 100 Million
(March 31, 2025: ' Nil Million) with a tenor of 365 days (including cash credit of ' 100 Million, Letter
of credit, Bills Discounted, Bank Guarantee and Per & Post Shipment Finance). The lending rate is
based on MCLR plus spread. The sanctioned facilities are unsecured.

As at March 31, 2026, the Company had available ' 300 Million (March 31, 2025: ' 200 Million) of
undrawn committed borrowing facilities under these facilities.

Unsecured cash credit from banks carry non-financial covenants. The Company has satisfied all
the covenants prescribed in the terms of bank loan.

(c) The Company has been sanctioned working capital limits in excess of ' 50 Million (March 31, 2025:
' 50 Million) in aggregate from banks during the year on the basis of security of current assets of the
Company. The quarterly statements filed by the Company for the year ended March 31, 2026 are in line
with revised submission made by the Company with such banks.

(a) Provision for warranty claims

The provision for estimated liabilities for product warranties is calculated using historical information
on the nature, frequency and average cost of warranty claims and management estimates regarding
possible future incidence based on corrective actions on product failures.

31 LEASES

The Company has lease contracts for its offices used in its operations. These leases generally have lease
terms between 11 months to 9 years and include extension and termination options at mutual consent. The
Company's obligations under its leases are secured by the lessor's title to the leased assets. Generally, the
Company is restricted from assigning and subleasing the leased assets.

Leasehold land considered in RoU assets have a lease period of 99 years. Considering the entire lease
premium is paid, no lease liability is recognised in the financial statements.

The Company has certain leases of offices with lease term of 12 months or less. The Company applies the
'short-term lease' recognition exemptions for its leases.

Set out below are the carrying amounts of right-of-use assets (RoU) recognised and the movements during
the year:

The key matters include the below-

(i) The custom authorities demanded additional basic custom duty on imported parts due to wrong
classification of certain goods manufactured by the Company amounting to ' 188.17 Million from
FY 2011-12 to FY 2025-26 (' 168.38 Million from FY 2010-11 to FY 2024-25). The Company has filed an
appeal with the authorities for the above matters. Based on the legal opinion obtained, management
is confident that the matter would be in its favour and no material financial implications would arise in
respect of the aforesaid matter.

(ii) Others pertain to disputes that the Company is contesting at various forums for claims made by certain
customers, employees and other authorities.

(iii) The Company had undertaken a bonus issue of its equity shares on March 30, 2009, pursuant to which
equity shares of face value of ' 100 each were allotted to both resident and non-resident shareholders.
This included the allotment of 97,500 equity shares of face value of ' 100 each to Fiori S.p.A. on March 30,
2009. The Company filed Form FC-GPR with the Reserve Bank of India ("RBI”) on September 25, 2024
in respect of the aforesaid allotment. Pursuant to clarifications and additional information sought by
RBI, the Company re-filed Form FC-GPR on November 6, 2024 and further on November 21, 2024. The
said Form FC-GPR was subsequently approved by RBI on November 28, 2024. RBI thereafter advised
the Company to file a compounding application with the Regional Office, Bengaluru, in relation to
the reporting delays and related contraventions under the Foreign Exchange Management Act, 1999
("FEMA”) and the regulations made thereunder. Accordingly, the Company filed a compounding
application on January 23, 2025 and subsequently submitted a revised compounding application on
May 22, 2025 pursuant to additional contraventions identified by RBI.

Subsequently, RBI vide its compounding order dated August 4, 2025 compounded the aforesaid
contraventions relating to delayed reporting of receipt of consideration, delayed filing of Form FC-
GPR and delayed filing of annual return on foreign liabilities and assets ("FLA Returns”), and levied a
compounding amount of ' 0.20 Million, which has been paid by the Company within the prescribed
timeline. Management believes that no further material financial implications would arise in respect of
the aforesaid matter

(iv) The Income Tax authorities have issued a demand notice in respect to FY 2023-24, primarily due to
disallowance of the provision for warranty expenses and difference between income as per Form 26AS
and income offered in ITR. The Company has filed an appeal with the authorities for the above matters.
Based on the legal opinion obtained, management is confident that the matter would be in its favour
and no material financial implications would arise in respect of the aforesaid matter.

34 EMPLOYEE BENEFIT OBLIGATIONS
A Gratuity plan

The Company has a defined benefit gratuity plan (funded) for its employees. The gratuity plan is governed
by the Payment of Gratuity Act, 1972. Under the Payment of Gratuity Act, 1972, employee who has completed
five years of service is entitled to specific benefit. The level of benefits provided depends on the length of
service and salary at retirement age.

The following tables summarize the components of net benefit expense recognised in the Statement of
Profit and Loss and the funded status and amounts recognized in the Balance Sheet:

The Company intends to contribute ' 15.00 Million (March 31, 2025: ' 9.51 Million) towards planned assets
during the next twelve months.

The average duration of the defined benefit plan obligation at the end of the twelve months reporting
period is 6.46 years (March 31, 2025: 7.64 years).

Risk exposure and asset liability matching

Provision of a defined benefit scheme poses certain risks, some of which are detailed hereunder:

1 Liability risks

(a) Asset-Liability Mismatch Risk:

Risk which arises if there is a mismatch in the duration of the assets relative to the liabilities. By
matching duration with the defined benefit liabilities, the Company is successfully able to neutralize
valuation swings caused by interest rate movements. Hence companies are encouraged to adopt
asset-liability management.

(b) Discount Rate Risk:

Variations in the discount rate used to compute the present value of the liabilities may seem small,
but in practise can have a significant impact on the defined benefit liabilities.

(c) Future Salary Escalation and Inflation Risk:

Since price inflation and salary growth are linked economically, they are combined for disclosure
purposes. Rising salaries will often result in higher future defined benefit payments resulting in a
higher present value of liabilities especially unexpected salary increases provided at management's
discretion may lead to uncertainties in estimating this increasing risk.

2 Asset risks

All plan assets are maintained in a trust fund managed by a private sector insurer viz; Kotak Mahindra
Life Insurance Ltd.

The Company has opted for a unit-linked fund which is market linked with options to invest in equity
funds. The Company has the option to structure the portfolio based on its risk appetite providing an

opportunity to earn market linked returns. But there is an investment risk here which is borne by the
company. A single account is maintained for both investment and claim settlement and hence 100%
liquidity is ensured.

Notes:

On November 21, 2025, the Government of India notified the four Labour Codes - the Code on Wages,
2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020, and the Occupational Safety,
Health and Working Conditions Code, 2020 - consolidating 29 existing labour laws, collectively referred
to as the 'New Labour Codes'. The Company has assessed and disclosed the incremental impact of
these changes taking into consideration the expert view and the best information available, which
has resulted in increase in gratuity liability by ' 31.04 Million. Considering the regulatory-driven and
non-recurring nature of this impact, the Company has presented this incremental amount as "Impact
of labour codes” under Exceptional Item in the Statement of Profit and Loss for the year ended March
31, 2026. The Company continues to monitor the finalisation of Central/State Rules and clarifications
from the Government on other aspects of the New Labour Codes and would continue to assess the
accounting implications basis such developments/guidance as may be needed.

B Other retirement benefits

The Company also has a retirement benefit plan (unfunded) for certain eligible employees wherein the
specified eligible employees are paid retirement benefit equivalent to 10-15 days of last drawn salary for
each completed year of service. As at March 31, 2026, the Company has created a provision of ' 7.51 Million
(March 31, 2025: ' 7.44 Million) for the said plan.

C Provident Fund

The Company makes Provident Fund and Employee State Insurance Scheme contributions which are
defined contribution plans, for qualifying employees. Under the Schemes, the Company is required to
contribute a specified percentage of the payroll costs to fund the benefits. During the year ended March 31,
2026, the Company recognised Rs.46.65 million (year ended March 31, 2025'45.94 Million) towards such
contribution in the Statement of profit and loss. The contributions payable to these plans by the Company
are at rates specified in the rules of the schemes.

(f) Other transactions

Refer note 36 in respect of employee stock options.

Refer note 6(b) in respect of expenses recoverable from shareholders

The transactions with related parties are made on terms equivalent to those that prevail in arm's length
transactions in ordinary course of business. Outstanding balances at the year-end are unsecured and
interest free and settlement occurs in cash.

The following table lists the inputs to the models used for the Schemes mentioned above, for the year
ended March 31, 2026 and March 31, 2025:

36 SHARE BASED PAYMENTS
Employee stock option

The shareholders of the Company, at the General Meeting held on September 24, 2024, approved the
Employee Stock Option Plan 2024 ("ESOP 2024” or "the Plan”) through a special resolution. The Plan
comprises two schemes: AJAX Employee Stock Option Scheme 2024 - Scheme I and Scheme II, effective
from December 1, 2024 ("Effective Date”).

The Company has granted stock options to certain employees and key managerial personnel under the
above two schemes which were approved by the Board of Directors. The key terms and conditions are as
follows:

Each option, upon exercise, will entitle the holder to receive one equity share having face value of ' 1/- each,
fully paid up.

Vesting schedule for Scheme I and Scheme II:

Subject to continued employment the options granted under Scheme I shall vest as under:

30% of the options shall vest at the end of the 2^nd anniversary from the grant date.

30% of the options shall vest at the end of the 3^rd anniversary from the grant date.

40% of the options shall vest at the end of the 4^th anniversary from the grant date.

Subject to continued employment the options granted under Scheme II shall vest as under:
For 1,144,068 options, 100% of the options shall vest at the end of the 1^st anniversary from the grant date. For
18,064 options granted shall vest 50% at the end of the 1^st anniversary from the grant date and 50% shall vest
at the end of the 2^nd anniversary from the grant date.

The expense recognised for employee services received based on the above mentioned schemes during
the year ended March 31, 2026 is ' 95.13 Million (March 31, 2025: ' 43.32 Million) and the carrying amount of
liability reflected in Employee stock option outstanding reserve is ' 175.68 Million as at March 31, 2026 (As at
March 31, 2025: ' 80.55 Million).

There were no cancellations or modifications to the awards in the year ended March 31, 2026 and March 31,
2025.

The Company categorises fair value measurements using a fair value hierarchy that is dependent on
the valuation inputs used as follows:

a. Level 1 - Quoted prices (unadjusted) in an active market for identical assets or liabilities that the
Company can assess at the measurement date

b. Level 2 - Inputs other than quoted prices included in Level 1 that are observable for the asset or
liability, either directly or indirectly

c. Level 3 - Unobservable inputs for the assets or liabilities.

The management assessed that cash and cash equivalents, other bank balances, trade receivables,
bank deposits, trade payables, borrowings, lease liabilities (current), other current financial assets and
other current financial liabilities approximate their carrying amounts largely due to the short-term
maturities of these instruments.There have been no transfers between Level 1 and Level 2 during the
year ended March 31, 2026 and March 31, 2025.

The following methods and assumptions were used to estimate the fair values:

The fair values of the Company's investment in mutual funds are based on the market values (Level 1)
prevailing as at the year end date. The fair values represent net asset value as stated by the issuers of
these mutual fund units in the published statements. Net asset values represent the price at which the
issuer will issue further units in the mutual fund and the price at which issuers will redeem such units
from the investors.

The fair values of the Company's investment in bonds and NCDs are based on the quotes provided by
the bank (Level 2) prevailing as at the year end date. The fair values represent net asset value as stated
by the issuers of these bonds and NCDs in the bond market.

38 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company's principal financial liabilities comprise of borrowings, lease liabilities, trade and other payables.
The main purpose of these financial liabilities is to finance the Company's operations. The Company's
principal financial assets include security deposits, bank deposits, trade receivables and cash and cash
equivalents that derive directly from its operations. The Company also holds investments in mutual funds,
bonds and NCDs.

The Company is exposed to credit risk, liquidity risk and market risk. The Company's senior management
oversees the management of these risks. The Board of Directors review and agree policies for managing
each of these risks, which are summarised below. The Company's risk management policies are established
to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to
monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to
reflect changes in market conditions and the Company's activities.

(a) Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or
customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating
activities (primarily trade receivables) and from its financing activities, including deposits with
banks, foreign exchange transactions and other financial instruments. The Company evaluates the
concentration of risk with respect to trade receivables and contract assets as low, as its customers are
located in several jurisdictions.

(i) Trade receivables and contract assets:

The Company's exposure to credit risk is influenced mainly by the individual characteristics of each
customer. However, management also considers the factors that may influence the credit risk of
its customer base, including the default risk associated with the industry and country in which
customers operate.

Customer credit risk is managed by the Company subject to the Company's established policy,
procedures and control relating to customer credit risk management. Outstanding customer
receivables are regularly monitored. To manage this, the Company periodically assesses the
financial reliability of customers, taking into account the financial condition, current economic
trends, and analysis of historical bad debts and ageing of trade receivable. The Company creates
allowance for all trade receivables based on lifetime expected credit loss model (ECL).

The Company considers a financial asset in default when contractual payments are 365 days
past due. However, in certain cases, the Company may also consider a financial asset to be in
default when internal or external information indicates that the Company is unlikely to receive
the outstanding contractual amounts in full before taking into account any credit enhancements
held by the Company. A financial asset is written off when there is no reasonable expectation of
recovering the contractual cash flows.

The maximum exposure to credit risk at the reporting date is the carrying value of each class of
financial assets disclosed in note 37.

(ii) Other financial assets

Other financial assets includes investments, cash and bank balances security deposits and interest
receivable which are placed with a reputable financial institution with high credit ratings and no
history of default.

(b) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations
associated with its financial liabilities that are settled by delivering cash or another financial
asset. The Company's approach to managing liquidity is to ensure, as far as possible, that it will
have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed
conditions, without incurring unacceptable losses or risking damage to the Company's reputation.
The Company assessed the concentration of risk with respect to financial liabilities and concluded it to
be low.

The Company's principal sources of liquidity are cash and cash equivalents, short term investments
and the cash flow that is generated from operations. The Company believes that the cash and cash
equivalents and short term investments are sufficient to meet its current requirements. Accordingly, no
liquidity risk is perceived.

Maturities of financial liabilities

The following are the remaining contractual maturities of financial liabilities at the reporting date. The
amounts are gross and undiscounted contractual cash flow, and include contractual interest payments
and exclude the impact of netting agreements.

(c) Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates
and equity prices, which will affect the Company's income or the value of its holdings of financial
instruments. The objective of market risk management is to manage and control market risk exposures
within acceptable parameters, while optimising the return.

The sensitivity analysis in the following sections relate to the position as at March 31, 2026 and March 31,
2025.

The sensitivity analysis have been prepared on the basis that the amount of net debt and the proportion
of financial instruments in foreign currencies are all constant as at March 31, 2026 and March 31, 2025.
The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective
market risks. This is based on the financial assets and financial liabilities held at March 31, 2026 and
March 31, 2025.

i) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate
because of changes in foreign exchange rates. The Company's exposure to the risk of changes in
foreign exchange rates relates primarily to the Company's operating activities (when revenue or
expense is denominated in a foreign currency).

ii) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will
fluctuate because of changes in market interest rates. The Company’s exposure to the risk of
changes in market interest rates relates primarily to the Company’s short-term debt obligations
with floating interest rates.

Exposure to interest rate risk

The following table demonstrates the sensitivity to a reasonably possible change in interest rates
on that portion of borrowings affected. With all other variables held constant, the Company’s
profit before tax is affected through the impact on floating rate borrowings, as follows:

The assumed movement in basis points for the interest rate sensitivity analysis is based on the
currently observable market environment.

iii) Price risk

The Company invests surplus funds in liquid mutual funds. The Company is exposed to market
price risk arising from uncertainties about future values of the investment. The Company manages
the equity price risk through investing surplus funds in liquid mutual funds on a short term basis.

39 CAPITAL MANAGEMENT

The Company's objective is to maintain a strong capital base to ensure sustained growth in business.
The capital management focusses to maintain an optimal structure that balances grows and maximizes
shareholder value. The Company is predominantly equity financed. Further, the Company has sufficient
cash, cash equivalents and financial assets which are sufficient to meet the debts.

41 OTHER STATUTORY INFORMATION

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending
against the Company for holding any Benami property under the Benami Transactions (Prohibition)
Act, 1988 and rules made there under.

(ii) The Company does not have any transactions with companies struck off.

(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond
the statutory period.

(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the year.

(v) The Company has not advanced or loaned or invested funds to any other person or entity, 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

(vi) 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,

(vii) 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 period 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).

(viii) The Company has not been declared as wilful defaulter by any bank or financial institution or other
lender.

(ix) The Company has complied with the relevant provisions of the Foreign Exchange Management Act,
1999 (42 of 1999) and the Companies Act for the above transactions and the transactions are not violative
of the Prevention of Money-Laundering Act, 2002 (15 of 2003).

(x) The Company does not have any transaction/scheme of arrangements which requires approval from
the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.

42 DAILY BACK-UP:

During the year ended March 31, 2026, the Company has maintained its books of account in electronic
mode and these books of account are accessible in India at all times and the back-up of books of account
has been kept in servers physically located in India on a daily basis except for dealer/customer management
software.

43 MAINTENANCE OF AUDIT TRAIL:

The Company has used three accounting softwares in respect of financial accounting, dealer/customer
management and people management which is operated by third-party software service provider, for
maintaining its books of account which have a feature of recording audit trail (edit log) facility. In respect
of financial accounting software, the feature of audit trail (edit log) facility was enabled and operated
throughout the year for all relevant transactions recorded in the software, except that audit trail feature is
not enabled at database level. In respect of dealer/customer management software, the feature of audit
trail (edit log) facility was not enabled. In respect of people management, the feature of audit trail (edit log)

facility was enabled and operated throughout the year for all relevant transactions recorded in the software.
Further, there are no instance of audit trail feature being tampered with in respect of accounting software
where the audit trail has been enabled.

Additionally, the audit trail of the prior years in respect of accounting softwares have been preserved by the
Company as per the statutory requirements for record retention to the extent it was enabled and recorded
for respective years.

44 During the previous year ended March 31, 2025, the Company has completed its Initial Public Offering (IPO)
of 20,180,446 equity shares with a face value of ' 1 each at an issue price of ' 629 per share (includes employee
reservation portion of 78,947 equity shares with a face value of ' 1 each at an issue price of ' 570), consisting
entirely of offer for sale of 20,180,446 shares. The total proceeds on account of offer for sale is ' 12,688.84
million. The Company's equity shares were listed on the National Stock Exchange of India Limited (NSE) and
BSE Limited (BSE) on February 17, 2025. Also, refer Note 6(b).