2.10 Provisions and Contingent Liabilities

2.10.1 Provisions

A provision is recorded when the Company has
a present 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 a reliable estimate can be made of the
amount of the obligation.

Provisions are reviewed at the end of each
reporting period and adjusted to reflect the
current best estimate. A provision is reversed
when it is no longer probable that an outflow of
resources embodying economic benefits will be
required to settle the obligation.

Provision for warranty claims is recognised
at the time of sale based on the historical
experience. Initial estimate of warranty expense
is reviewed annually.

2.10.2 Contingent Liabilities

Contingent liabilities are disclosed when there
is a possible obligation arising from past events,
the existence of which will be confirmed only by
the occurrence or non-occurrence of one or
more uncertain future events not wholly within
the control of the Company. Show cause notices
are not considered as Contingent Liabilities
unless converted into demand.

2.11 Leases

The Company's leases primarily consist of leases for
certain plant and machinery, Vehicles and warehouse.
The Company, being a lessee, assesses whether a
contract contains a lease, at inception of a contract.
Company recognises Right-of-Use Asset and lease
liability only when the contract conveys the right to
control the use of an identified asset for a period of
time in exchange for consideration.

The right-of-use assets are initially recognised at
cost, which comprises the initial amount of the lease
liability adjusted for any lease payments made at or
prior to the commencement date of the lease plus
any initial direct costs less any lease incentives. They
are subsequently measured at cost less accumulated
depreciation and impairment losses.

Right-of-use assets, for which the entity is reasonably
certain to exercise the right to purchase are
depreciated from the commencement date on a
straight-line basis over the shorter of the lease term
and useful life of the underlying asset.

The lease liability is initially measured at amortised
cost at the present value of the future lease payments.

The lease payments are discounted using the interest
rate implicit in the lease or, if not readily determinable,
using the incremental borrowing rates.

For the short-term and low value leases, the Company
recognises the lease payments as an operating
expense on a straight-line basis over the term of
the lease.

2.12 Cash and Cash Equivalents

Cash and cash equivalents include cash on hand
and other short-term, highly liquid investments with
original maturities of three months or less that are
readily convertible to known amounts of cash and
which are subject to an insignificant risk of changes
in value.

2.13 Financial Assets

2.13.1 Classification

The Company classifies its financial assets in the
following measurement categories:

(i) Those measured subsequently at fair value
through profit or loss (in case of investments
in mutual funds)

(ii) Those measured at amortised cost.

2.13.2 Measurement

Initial Recognition Measurement

Financial assets are recognised when the
Company becomes party to the contract. The
Company measures a financial asset initially
at its fair value, plus in the case of financial
assets not recorded at fair value through profit
or loss (FVTPL), transaction costs that are
attributable to the acquisition of the financial
asset. Trade receivables that do not contain a
significant financing component are measured
at transaction price.

2.13.3 Subsequent Measurement

2.13.3.1 Investments

Investments are subsequently measured at Fair
value through Profit and loss. Income or loss from
these financial assets is included in other income
or other expenses.

2.13.3.2 Other Financial Assets

After Initial Measurement, financial assets are
subsequently measured at amortised cost
using the effective interest rate method (EIR
method). Amortised cost is calculated by taking
into account any discount or premium and fees
or cost that are an integral part of EIR. The EIR
amortisation is included in finance income in
the statement of profit and loss. The losses
arising from impairment are recognised in the
statement of profit and loss.

2.13.4 Impairment of Financial Assets

The Company assesses on a forward looking
basis the expected credit losses associated
with its assets carried at amortised cost. The
impairment methodology applied depends on
whether there has been significant increase in
credit risk. Note 7.2 details how the Company
determines whether there has been a significant
increase in credit risk.

For trade receivables, the Company applies the
simplified approach permitted by Ind AS 109
Financial Instruments, which requires Expected
Credit Losses (ECL) to be recognised from initial
recognition of the receivables.

The application of simplified approach does
not require the Company to track changes in
credit risk. Rather, it recognises impairment
loss allowance based on lifetime ECLs at
each Balance Sheet date, right from its
initial recognition.

2.13.5 Derecognition of Financial Assets

A financial asset (or, where applicable, a part
of a financial asset or part of a group of similar
financial assets) is primarily derecognised (i.e.
removed from the Company's balance sheet)
when the rights to receive cash flows from the
asset have expired.

2.14 Financial Liabilities

2.14.1 Classification

The Company classifies all financial liabilities as
subsequently measured at amortised cost.

2.14.2 Initial recognition and measurement

The Company's financial liabilities include trade
and other payables, loans and borrowings
including bank overdrafts. 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.

2.14.3 Loans and Borrowings

After initial recognition, interest-bearing loans
and borrowings are subsequently measured at
amortised cost using the EIR method. Gains and
losses are recognised in the Statement of Profit
and Loss when the liabilities are derecognised.

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 as finance
costs in the Statement of Profit and Loss. This
category generally applies to interest-bearing
loans and borrowings.

2.14.4 De-recognition

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 and Loss.

2.14.5 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 realise the
assets and settle the liabilities simultaneously.

2.15Derivative Financial Instruments

The Company enters into forward contract to
manage its exposure to foreign currency exchange
risks. These derivative contracts that do not qualify
for hedge accounting under Ind AS 109, are initially
recognised at fair value on the date the contract is
entered into and subsequently measured through at
profit or loss. Gains or loss arising from changes in the
fair value of the derivative contracts are recognised
in statement of profit and loss.

2.16 Dividend to Shareholders

Final dividend proposed and distributed to equity
shareholders is recognised only in the financial year in
which it is approved by the members of the Company
in the Annual General Meeting. Interim dividend is
recognised when approved by the Board of Directors
at the Board Meeting. Dividend distributed is
recognised in the Statement of Changes in Equity.

2.17 Earnings Per Share

Basic earnings per share is calculated by dividing the
net profit or loss for the year attributable to equity
shareholders by the weighted average number of
equity shares outstanding during the year.

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

2.18 Segment Information

The Company has identified "Domestic Appliances"
as a only reportable segment based on the manner
in which operating results are reviewed by the Chief
Operating Decision Maker (CODM).

2.19 Prior Period

Errors of material amount relating to prior period(s)
are disclosed by a note with nature of prior period
errors, amount of correction of each such prior period
presented retrospectively, to the extent practicable
along with change in basic and diluted earnings per
share. However where retrospective restatement
is not practicable for a particular period then the
circumstances that led to the existence of that
condition and the description of how and from where
the error is corrected are disclosed in notes forming
part of Financial statements.

2.20 Cash Flow Statement

Cash flow statement is prepared in accordance with
the indirect method prescribed in Ind AS 7 'Statement
of Cash Flows'.

Cash flows are reported using the indirect method,
whereby profit/(loss) before tax is adjusted for the
effects of transactions of non cash nature and any
deferrals or accruals of past or future cash receipts
or payments. Cash flow for the year is classified as
operating, investing and financing activities.

2.21 Critical Estimates & Judgements

The preparation of financial statements in conformity
with the generally accepted accounting principles
requires management to make certain estimates
and assumptions that affect the reported amount
of assets and liabilities as of the balance sheet date
and reported revenue and expenses for the year and
disclosure of contingent liabilities as of the date of
balance sheet. The estimates and assumptions used
in the accompanying financial statements are based
upon the management's evaluation of the relevant
circumstances as of the date of financial statements.
Actual amounts could differ from these estimates.

2.22 Rounding of Amounts

All amounts disclosed in the financial statements and
notes are presented in INR Lakh and has been rounded
off to two decimals as per the requirements of Division
II of schedule III to the Act, unless otherwise stated.

Nature and purpose of reserves
General Reserve

General reserve was created for declaration of dividends as per statutory requirement.

Security Premium

Security Premium represents premium on preferential shares issued (net of issue expenses).

Capital Reserve

Capital reserve was created on forfeiture of shares as per statutory requirement.

Capital Redemption Reserve

Capital redemption reserve was created on Redemption of Preference Shares as per statutory requirement.

Retained Earnings

Retained earnings are the profits that the Company has earned till date, net-off any transfers to general reserve, dividends
or other distributions paid to shareholders.

Revaluation Surplus

Represents Net gains arising on the revaluation of the Company's properties (other than investment properties). On
disposal of the asset, the balance of the revaluation reserve is transferred to retained earnings.

Note: Above contingent liabilities exclude the demands raised by the Central Excise Department on earlier assessment
aggregating to H1,899.67 lakhs which have been allowed in favour of the Company by the CESTAT. The department has
filed an appeal with the Honourable Supreme Court, which is pending disposal.

Notes:

1. It is not practicable to estimate the timing of cash outflows, if any, in respect of matters pending resolution of the
arbitration/appellate proceedings.

2. The Company has disputed various demands raised by tax authorities in respect of Customs, GST as well as pre-GST
levies such as sales tax and VAT. These cases are pending before appropriate appellate authorities. The management,
based on its evaluation and legal advice, believes that the likelihood of an outflow is not probable at this stage.
Therefore, these liabilities have not been recognised in the books of account and are disclosed as contingent liabilities.

3. Claims against the Company not acknowledged as debts represent various claims made by third parties in respect of
contractual obligations, commercial disputes and other matters. The management, based on legal advice, does not
consider these claims as valid liabilities and has therefore not recognised any provision in the financial statements.

The ultimate outcome of these matters is subject to judicial processes and accordingly these have been disclosed
as contingent liabilities.

The Company does not expect any reimbursements in respect of the above contingent liabilities.

4. As per E-waste (Management) Rules, 2022, as amended, the company has an obligation to complete the Extended
Producer Responsibility (EPR) targets. The Company has fulfilled its obligation for the current financial year at the
rates prevailing/charged in the market by the EPR agencies. Further, Central Pollution Control Board ("the Board")
of India has notified higher floor prices for exchange of EPR certificates, which has been legally challenged before
the Honourable Delhi High Court by several producers in similar businesses. Since the matter is sub judice, the liability
arising from difference between the floor prices notified by the Board and the rates prevailing/charged in the market
is disclosed as a contingent liability

5.2 Capital Commitments

Capital commitments represent the estimated value of contracts entered by the Company for acquisition of property,
plant and equipment and other capital assets, which remain to be executed as at the balance sheet date. These
obligations are contractual in nature and are not recognised as liabilities since the related assets have not yet been
received or the services have not yet been rendered. Accordingly, these are disclosed as commitments and indicate
future cash outflows.

Risk management framework

The Company's Board of Directors has overall responsibility for the establishment and oversight of the Company's risk
management framework. The Company has constituted a Risk Management Committee (RMC) for identification,
evaluation and mitigation of operations, strategic and external risks. RMC has the overall responsibility for monitoring
and recovering the Risk Management Plan and associated practices of the Company.

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. The Company,
through its training and management standards and procedures, aims to maintain a disciplined and constructive control
environment in which all employees understand their roles and obligations.

The RMC oversees how management monitors compliance with the company's risk management policies and procedures
and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The
committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad hoc reviews of
risk management controls and procedures, the results of which are reported to the audit committee.

7.1 Market Risk

Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and equity prices - will
affect the Company's income or the value of its holdings of financial instruments. Market risk is attributable to all market
risk sensitive financial instruments including foreign currency receivables and payables. The Company is exposed to market
risk primarily related to foreign exchange rate risk, interest rate risk and the market value of investments. Thus, Company's
exposure to market risk is a function of investing and revenue generating and operating activities in foreign currency. The
objective of market risk management is to avoid excessive exposure in our foreign currency revenues and costs.

Market risk comprises two types of risks.

7.1.1 Foreign Currency Exchange Rate Risk

The fluctuation in foreign currency exchange rates may have potential impact on the Statement of Profit or Loss, other
comprehensive income and equity.

The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate
risks. Currently the Company follows a policy of hedging 100% of its trade payables. On an overall basis, the Company
has hedged 98.85% of its foreign exchange exposure thus minimising the currency risk.

Expected credit loss assessment

Exposures to customers outstanding at the end of each reporting period are reviewed by the Company to determine
incurred and expected credit losses. Management believes that the unimpaired amounts that are past due are still
collectible in full, based on historical payment behavior and extensive analysis of customer credit risk.

The movement in the allowance for impairment in respect of trade receivables during the year was as follows:

7.4 Other Price Risk

The Company is mainly exposed to the other price risk due to its investment in mutual funds. The price risk arises due to
uncertainties about the future market values of these investments. At 31^st March, 2026, the investment in mutual funds
amounts to H 12,71734 Lakhs (31^st March 2025: H 8,448.08 Lakhs). These are exposed to price risk. The Company has laid
policies and guidelines which it adheres to minimise price risk arising from investments in mutual funds. A 1% increase/
(decrease) in prices would increase the equity and profit or loss by the amounts shown below.

7.3 Liquidity Risk

Liquidity needs of the Company are monitored on the basis of monthly and yearly projections. The company's principal
sources of liquidity are cash and cash equivalents, cash generated from the operations and bank borrowings.

The Company manages the liquidity needs by continuously monitoring cash inflows and by maintaining adequate cash
and cash equivalents. Net cash requirements are compared to available cash in order to determine any shortfalls.

Short term liquidity requirements consist mainly of sundry creditors, expense payable, employee dues and repayment of
loans arising during the normal course of business as of each reporting date. The Company meets its short-term liquidity
requirements primarily through efficient working capital management and by accessing additional and alternative credit
facilities available in the financial market. The Company has acceptances in line with supplier's financing arrangements
which might invoke liquidity risk as a result of liabilities being concentrated with few financial institutions instead of a
diverse group of suppliers. The Company has established an appropriate liquidity risk management framework for the
management of the Company's short, medium and long-term funding and liquidity management requirements.

The Company assesses long-term liquidity requirements on a periodical basis and manages them through internal
accruals and bank borrowings.

Equity share capital and other equity are considered for the purpose of Company's capital management. The Company
manages its capital so as to safeguard its ability to continue as a going concern and to optimize returns to shareholders.
The capital structure of the Company is based on management's judgement of its strategic and day-to-day needs
with a focus on total equity so as to maintain investor, creditors and market confidence. The management and the
Board of Directors monitor the return on capital as well as the level of dividends to shareholders. The Company may take
appropriate steps in order to maintain, or if necessary, adjust, its capital structure.

The Board of Directors seeks to maintain a balance between the higher returns that might be possible with higher levels
of borrowings and the advantages and security afforded by a sound capital position.

The Company monitors capital using a ratio of 'adjusted net debt' to 'total equity'. For this purpose, adjusted net debt is
defined as total liabilities, comprising interest-bearing loans and borrowings, less cash and cash equivalents and other
bank balances. Total equity comprises all components of equity.

12.1 General description of various defined employee’s benefits schemes are as under:

a) Provident Fund:

The Company's Provident Fund (defined contribution fund) is managed by Regional Provident Fund Commissioner.
The Company pays fixed contribution to provident fund at pre-determined rate.

b) Gratuity:

Gratuity is a defined benefit plan, in respect of past services provided by the employees is quantified based on
the actuarial valuation.

The scheme is funded by the Company and the liability is recognised on the basis of contribution payable to the insurer.
Disclosure of information as required under Ind AS-19 have been made in accordance with the actuarial valuation.

The summarised position of various defined benefits recognised in the Statement of Profit and Loss, Other
Comprehensive Income (OCI) and Balance Sheet and other disclosures are as under:

b. The Company has been sanctioned a working capital facility of H4,000 Lakhs, by SBI Bank, valid up to October 23,
2026, H2,000 Lakhs by IDBI valid up to October 13, 2026, and H4,000 Lakhs by ICICI bank valid up to May 26, 2026.
The outstanding balance as on March 31, 2026 - H Nil (Previous Year - H Nil). This facility is secured by way of a
hypothecation of inventories and receivables on pari-passu first charge basis both present & future.

| Labour Code, 2025

During the year, pursuant to the consolidation of 29 labour regulations into 4 New Labour Codes effective November 21,
2025, the company reassessed its employee benefit obligations and recognised an incremental liability of H159.18 Lakhs
under Exceptional items.

22 Recent Ind - AS Pronouncements

Ministry of Corporate Affairs ("MCA”) notifies new standards or amendments to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time to time. For the year ended 31^st March, 2026, MCA has notified
following Amendment to Ind AS, applicable to the Company w.e.f. April 01, 2025

i) Ind AS 21 - The Effects of Changes in Foreign Exchange Rates Lack of Exchangeability

ii) Ind AS 12 - Income Taxes relating to International Tax Reform - Pillar Two Model Rules - Exception to recognition and
disclosure of deferred tax.

iii) Amendments to Ind AS 7 - Cash flow statement and Ind AS 107 - Financial Instrument Disclosures relating to supplier
finance arrangements.

iv) Ind AS 1 - Presentation of Financial Statements Classification of Liabilities as current or non- current and non- current
liabilities with covenants.

The Company has reviewed the new pronouncements and based on its evaluation has determined that it does not
have any significant impact in its financial statements.

23 Additional Disclosures

Additional information and disclosures as required under Schedule III to the act to the extent applicable to the company
has been disclosed.

(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.

(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 Registrar of Companies
beyond the statutory period.

(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the year ended March 31, 2026.

(v) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign
entities (Intermediaries) with the understanding that the Intermediary shall: (a) directly or indirectly lend or invest in
other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries)
or (b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(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 no such transaction which is not recorded in the books of accounts that has been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey
or any other relevant provisions of the Income Tax Act, 1961).

(viii) The Company has not been declared wilful defaulter by any bank or financial institution or government or any
government authority.

(ix) The Company has neither declared nor paid any dividend during the year.

(x) Disclosure on number of layer of companies is not applicable as there are no such transactions.

(xi) There are no scheme of arrangements approved by the Competent authority in terms of Sections 230 to 237 of the
Companies Act, 2013 during the year.

(xii) The title deeds of all of the immovable properties included in Property, Plant and Equipment are held in the name of
the Company.

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

(xiv) There are no outstanding loans or advances in the nature of loans that are granted to Promoters, Directors, KMPs
and the related parties.