1B.4.8 Provisions, Contingent Liabilities and Contingent Assets

(a) Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event and
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. Such provisions are determined based on management's estimate of the
amount required to settle the obligation at the balance sheet date. When the Company expects some or all of a provision to
be reimbursed, the reimbursement is recognised as a standalone asset only when the reimbursement is virtually certain.

(b) 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.

(c) Contingent liabilities are disclosed on the basis of judgment of the management. These are reviewed at each balance sheet
date and are adjusted to reflect the current management's estimate.

(d) Contingent assets are not recognized but are disclosed in the financial statements only when inflow of economic benefits is
probable.

1B.4.9 Income Taxes

(a) Income-Tax expense comprises of current and deferred income tax. Income tax expense is recognised in net profit in the
Statement of Profit and Loss except to the extent that it relates to items recognized directly in equity, in which case it is
recognized in other comprehensive income or Equity.

(b) Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities,
based on tax rates and laws that are enacted or substantively enacted at the Balance sheet date.

(c) Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial
statements and the corresponding tax bases used in the computation of taxable profit.

(d) Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is
settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of
the reporting period. The carrying amount of deferred tax liabilities and assets are reviewed at the end of each reporting
period.

(e) Deferred tax assets are recognised to the extent it is probable that taxable profit will be available against which the deductible
temporary differences, and the carry forward of unused tax losses can be utilised.

1B.4.10 Foreign Currency Transactions and Translations

a) Transactions in foreign currencies are initially recorded at the exchange rate prevailing on the date of transaction. Monetary
assets and liabilities denominated in foreign currencies are translated at the functional currency closing rates of exchange at
the reporting date.

(b) Exchange differences arising on settlement or translation of monetary items are recognised in Statement of Profit and Loss
except to the extent of exchange differences which are regarded as an adjustment to interest costs on foreign currency
borrowings that are directly attributable to the acquisition or construction of qualifying assets which are capitalised as cost
of assets.

(c) Non-monetary items that are measured in terms of historical cost in a foreign currency are recorded using the exchange rates
at the date of the transaction. Non-monetary items measured at fair value in a foreign currency are translated using the
exchange rates at the date when the fair value was measured. The gain or loss arising on translation of non-monetary items
measured at fair value is treated in line with the recognition of the gain or loss on the change in fair value of the item (i.e.,
translation differences on items whose fair value gain or loss is recognised in OCI or Statement of Profit and Loss are also
recognised in OCI or Statement of Profit and Loss, respectively).

1B.4.11 Employee Benefits Expense

(a) Short Term Employee Benefits

The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by
employees are recognised as an expense during the period when the employees render the services.

(b) Post-Employment Benefits - Defined Contribution Plans

A defined contribution plan is a post-employment benefit plan under which the Company pays specified contributions to a
separate entity. The Company makes specified monthly contributions towards Provident Fund and ESIC Fund. The Com¬
pany recognises contribution payable to the provident fund scheme and ESIC 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 recognised as an asset to that extent.

(c) Post-Employment Benefits - Defined Benefits Plans

(i) The cost of the defined benefit plan and other post-employment benefits and the present value of such 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, mortal¬
ity rates and future pension increases. 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.

(ii) The Company pays gratuity to the employees whoever has completed five years of service with the Company at the
time of resignation/superannuation. The gratuity is paid @15 days salary for every completed year of service as per the
provisions of the Payment of Gratuity Act, 1972.

(iii) The gratuity liability amount is contributed to the approved gratuity fund formed exclusively for gratuity payment to
the employees. The gratuity fund has been approved by the governing Income-Tax authorities.

(iv) The liability in respect of gratuity and other post-employment benefits is calculated using the Projected Unit Credit
Method and spread over the period during which the benefit is expected to be derived from employees’ services.

(v) Re-measurements of defined benefit plans in respect of post-employment are charged to the Other Comprehensive
Income.

1B.4.12 Revenue from Operations

(a) Revenue from sale of goods is recognised when the significant risks and rewards of ownership have been transferred to the
buyer, recovery of the consideration is probable, the associated cost can be estimated reliably, there is no continuing
effective control or managerial involvement with the goods, and the amount of revenue can be measured reliably.

(b) Revenue from sale of goods is measured at the fair value of the consideration received or receivable after taking into account
contractually defined terms of payment and excluding trade discounts, volume rebates and taxes or duties collected on
behalf of the Government such as Goods and Services Tax [GST].

(c) The Company does not adjust short-term advances received from the customer for the effects of significant financing
component if it is expected at the contract inception that the promised good or service will be transferred to the customer
within a period of one year.

(d) Revenue from power generating units is recognised on monthly basis when the generated units are transmitted as per the
contractually agreed terms.

1B.4.13 Other Income

(a) Interest Income

For all Debt Instruments measured either at Amortized Cost or at Fair Value through Other Comprehensive Income, 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 gross
carrying amount of the financial asset or to the amortized cost of a financial liability.

(b) Dividend Income

Dividend income is recognised only when the right to receive the same is established, it is probable that the economic
benefits associated with the dividend will flow to the Company, and the amount of dividend can be measured reliably.

1B.4.14 Goods and Services Tax 1GST1

The Goods and Services Tax balances, as appearing in the Balance Sheet of the Company, are subject to the reconciliation at
the time of furnishing the annual GST returns of the company, under the Goods and Services Tax Enactments, for the financial
year 2024-25.

1B.4.15 Financial Instruments

(a) Financial Assets

(i) Initial recognition and measurement

All financial assets and liabilities are initially recognized at fair value. Transaction costs that are
directlyattributable to the acquisition or issue of financial assets and financial liabilities, which are not at fair
value, are adjusted to the fair value, through profit and loss, on initial recognition. Purchase and sale of
financial assets are recognised using trade date accounting.

(ii) Subsequent measurement

Financial assets carried at amortised cost

A financial asset is measured at amortised cost if it is held within a business model whose objective is to hold
the asset in order 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. Financial assets at fair value through other comprehensive income (FVTOCI)

A financial asset is measured at FVTOCI if it is held within a business model 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.

Financial assets at fair value through profit or loss (FVTPL)

A financial asset not classified as either amortised cost or FVTOCI, is classified as FVTPL.

(iii) Reclassification of Financial Assets

Financial assets are reclassified subsequent to their recognition, if the Company changes its business model
for managing those financial assets. Changes in business model are made and applied prospectively from the
reclassification date which is the first day of immediately next reporting period following the changes in
business model in accordance with principles laid down under Ind AS 109 - Financial Instruments.

(iv) Other Equity Investments

All other equity investments are measured at fair value, with value changes recognised in Statement of Profit
and Loss, except for those equity investments for which the Company has elected to present the value
changes in ‘Other Comprehensive Income’. However, dividend on such equity investments are recognised in
Statement of Profit and loss when the company’s right to receive payment is established.

(v) Impairment of financial assets

In accordance with Ind AS 109, the Company uses ‘Expected Credit Loss’ (ECL) model, for evaluating impair
ment of financial assets other than those measured at fair value through profit and loss (FVTPL).

Expected credit losses are measured through a loss allowance at an amount equal to:

• The 12-months expected credit losses (expected credit losses that result from those default events on the financial instrument
that are possible within 12 months after the reporting date); or

• Full lifetime expected credit losses (expected credit losses that result from all possible default events over the life of the
financial instrument)

For trade receivables Company applies ‘simplified approach’ which requires expected lifetime losses to be recognised from
initial recognition of the receivables. The Company uses historical default rates to determine impairment loss on the portfolio
of trade receivables. At every reporting date these historical default rates are reviewed and changes in the forward looking
estimates are analysed.

For other assets, the Company uses 12 month ECL to provide for impairment loss where there is no significant increase in
credit risk. If there is significant increase in credit risk full lifetime ECL is used.

(b) Financial Liabilities

(i) Initial recognition and measurement

All financial liabilities are recognized at fair value and in case of loans, net of directly attributable cost. Fees of recurring
nature are directly recognised in the Statement of Profit and Loss as finance cost.

(ii) Subsequent measurement

Financial liabilities are carried at amortized cost using the effective interest method. 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.

(c) Derivative financial instruments and Hedge Accounting

Derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into
and are also subsequently measured at fair value. Derivatives are carried as financial assets when the fair value is positive
and as financial liabilities when the fair value is negative. Any gains or losses arising from changes in the fair value of
derivatives are taken directly to Statement of Profit and Loss, except for the effective portion of cash flow hedges which is
recognised in Other Comprehensive Income and later to Statement of Profit and Loss when the hedged item affects profit or
loss or treated as basis adjustment if a hedged forecast transaction subsequently results in the recognition of a non-financial
assets or non-financial liability.

Hedges that meet the criteria for hedge accounting are accounted for as follows:

(i) Cash flow hedge

The Company designates derivative contracts or non derivative financial assets / liabilities as hedging instruments to
mitigate the risk of movement in interest rates and foreign exchange rates for foreign exchange exposure on highly
probable future cash flows attributable to a recognised asset or liability or forecast cash transactions. When a derivative
is designated as a cash flow hedging instrument, the effective portion of changes in the fair value of the derivative is
recognized in the cash flow hedging reserve being part of other comprehensive income. Any ineffective portion of
changes in the fair value of the derivative is recognized immediately in the Statement of Profit and Loss. If the hedging
relationship no longer meets the criteria for hedge accounting, then hedge accounting is discontinued prospectively. If
the hedging instrument expires or is sold, terminated or exercised, the cumulative gain or loss on the hedging instrument
recognized in cash flow hedging reserve till the period the hedge was effective remains in cash flow hedging reserve
until the underlying transaction occurs. The cumulative gain or loss previously recognized in the cash flow hedging
reserve is transferred to the Statement of Profit and Loss upon the occurrence of the underlying transaction. If the
forecasted transaction is no longer expected to occur, then the amount accumulated in cash flow hedging reserve is
reclassified in the Statement of Profit and Loss.

(ii) Fair Value Hedge

The Company designates derivative contracts or non derivative financial assets / liabilities as hedging instruments to
mitigate the risk of change in fair value of hedged item due to movement in interest rates, foreign exchange rates and
commodity prices.

Changes in the fair value of hedging instruments and hedged items that are designated and qualify as fair value hedges
are recorded in the Statement of Profit and Loss. If the hedging relationship no longer meets the criteria for hedge
accounting, the adjustment to the carrying amount of a hedged item for which the effective interest method is used is
amortised to Statement of Profit and Loss over the period of maturity.

(d) Derecognition of financial instruments

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. A financial liability (or a part of
a financial liability) is derecognized from the Company's Balance Sheet when the obligation specified in the contract is
discharged or cancelled or expires.

(e) Offsetting

Financial Assets and Financial Liabilities are offset and the net amount is presented in the balance sheet when, and
only when, the Company has a legally enforceable right to set off the amount and it intends, either to settle them on a
net basis or to realise the asset and settle the liability simultaneously.

1B.4.16 Operating Cycle

(a) The Company presents its assets and liabilities in the balance sheet based on current/non-current classification which
is based upon the Company's operating cycle. The Company has identified twelve months as its operating cycle.

(b) An asset is treated as current when it is:

(i) Expected to be realized or intended to be sold or consumed in normal operating cycle;

(ii) Held primarily for the purpose of trading;

(iii) Expected to be realized within twelve months after the reporting period; or

(iv) Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve

months after the reporting period

(c) A liability is treated as current when :

(i) It is expected to be settled in normal operating cycle;

(ii) It is held primarily for the purpose of trading;

(iii) It is due to be settled within twelve months after the reporting period, or

(iv) There is no unconditional right to defer the settlement of the liability for at least twelve months after the

reporting period

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

1B.4.17 Earnings Per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by
weighted average number of equity shares outstanding during the period. The weighted average number of equity shares
outstanding during the period are adjusted for events of shares issued during the year including bonus issue.

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. Dilutive potential equity shares are deemed converted as at the beginning of the period unless issued at a later date.

1B.4.18 Dividend Distribution

Dividends paid (including Income-Tax thereon) are recognised in the period in which the interim dividends are approved by the
Board of Directors, or in respect of the final dividend when approved by the shareholders.

1B.4.19 Statement of Cash Flows

(a) Cash and Cash equivalents

For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, other
short-term and 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.

(b) The Statement of Cash Flows has been prepared under the 'Indirect Method' as set out in Indian Accounting Standard (Ind
AS) 7 on 'Statement of Cash Flows'.

IB. 4.20 Government Grants

The Company recognizes government grants only when there is reasonable assurance that the conditions attached to them
will be complied with, and the grants will be received. Government grants related to assets are presented by deducting the
grant from the carrying amount of the asset. Government grants related to revenue are recognized on a systematic basis in net
profit in the Statement of Profit and Loss over the periods necessary to match them with the related costs which they are
intended to compensate.

NOTE - 1C - CRITICALACCOUNTINGJUDGMENTSAND KEYSOURCES OF ESTIMATION UNCERTAINTY

The preparation of the financial statements in conformity with the Ind AS requires management to make judgments, estimates and
assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities and disclosures as at date
of the financial statements and the reported amounts of the revenues and expenses for the years presented. The estimates and associated
assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these
estimates under different assumptions and conditions. The estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or
in the period of the revision and future periods if the revision affects both current and future periods.

IC. 1 Depreciation / amortisation and useful lives of property plant and equipment / intangible assets

Property, Plant and Equipment / Intangible assets are depreciated / amortised over their estimated useful lives, after taking into
account estimated residual value. Management reviews the estimated useful lives and residual values of the assets annually in
order to determine the amount of depreciation / amortisation to be recorded during any reporting period. The useful lives and
residual values are based on the Company’s historical experience with similar assets and take into account anticipated technologi¬
cal changes. The depreciation / amortisation for future periods is revised if there are significant changes from previous estimates.

1C.2 Recoverability of Trade Receivable

Judgements are required in assessing the recoverability of overdue trade receivables and determining whether a provision against
those receivables is required. Factors considered include the credit rating of the counterparty, the amount and timing of antici¬
pated future payments and any possible actions that can be taken to mitigate the risk of non-payment.

1C.3 Provisions

Provisions and liabilities are recognized in the period when it becomes probable that there will be a future outflow of funds
resulting from past operations or events and the amount of cash outflow can be reliably estimated. The timing of recognition and
quantification of the liability requires the application of judgment to existing facts and circumstances, which can be subject to
change. The carrying amounts of provisions and liabilities are reviewed regularly and revised to take account of changing facts
and circumstances.

1C.4 Impairment of non-financial assets

The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists,
the Company estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or Cash
Generating Units (CGU’s) fair value less costs of disposal and its value in use. It is determined for an individual asset, unless the
asset does not generate cash inflows that are largely independent of those from other assets or a groups of assets. Where the
carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its
recoverable amount.

In assessing value in use, the estimated future cash flows are discounted to their present value using pre-tax discount rate that
reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less
costs of disposal, recent market transactions are taken into account, if no such transactions can be identified, an appropriate
valuation model is used.

IC. 5 Impairment of financial assets

The impairment provisions for financial assets are based on assumptions about risk of default and expected cash loss rates. The
Company uses judgment in making these assumptions and selecting the inputs to the impairment calculation, based on Company’s
past history, existing market conditions as well as forward looking estimates at the end of each reporting period.

NOTE - 1D - New and amended Standards adopted by the Company

During the financial year ended 31st March, 2025, no new accounting standard has been adopted by the Company.

During the financial year ended 31st March, 2020, the Company has applied the following standards and amendments for the first
time for their annual reporting period commencing April 1, 2019:

ID. 1 Appendix C to Ind AS 12 - Uncertainty over income tax treatments

Appendix C to Ind AS 12 clarifies the accounting for uncertainties in income taxes. The interpretation is to be applied to the
determination of taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates, when there is uncertainty
over income tax treatments under Ind AS 12. The adoption of Appendix C to Ind AS 12 did not have any material impact on the
financial statements of the Company.

1D.2 Amendment to Ind AS 12 - Income Taxes

The Ministry of Corporate Affairs issued amendments to Ind AS 12 - Income Taxes. The amendments clarify that an entity shall
recognize the income tax consequences of dividends on financial instruments classified as equity according to where the entity
originally recognized those past transactions or events that generated distributable profits were recognized. The adoption of
amendment to Ind AS 12 did not have any material impact on the financial statements of the Company.

1D.3 Amendment to Ind AS 19 - Plan Amendment, Curtailment or Settlement

The Ministry of Corporate Affairs issued amendments to Ind AS 19, ‘Employee Benefits’, in connection with accounting for plan
amendments, curtailments and settlements requiring an entity to determine the current service costs and the net interest for the
period after the remeasurement using the assumptions used for the remeasurement; and determine the net interest for the
remaining period based on the remeasured net defined benefit liability or asset. The adoption of amendment to Ind AS 19 did not
have any material impact on the financial statements of the Company.

Notes:

(i) TThe company has borrowed Cash Credit Loans from Axis Bank Ltd. and ICICI Bank Ltd. led by Axis Bank Ltd. wherein, Axis Bank
Cash Credit Loan of Rs.703.52 Lakhs [Previous Year Rs. Nil] and ICICI Bank Cash Credit Loan of Rs. 2,002.69 Lakhs [Previous Year
Rs. Nil] are secured by way of First/ Pari Passu Charge (between consortium members) on whole of companies present and future
stocks of raw materials, semi-finished and finished goods, consumables, stores and spares and other movables including book
debts, bills whether documentary or clean, outstanding monies, receivables. The facilities as above are further secured by way of
equitable mortagae of immovable properties of the Company (except Wind Electrical Generator) and Personal Guarantees of Mr.
Praveen Kataria, Mr. Hemant Kataria & Mrs. Asha Devi Kataria.

Notes :

i) Trade payables due to firms or private companies, in which any of the directors of the Company is a partner or a director or a
member, amounts to Rs. 438.49 Lakhs (Previous Year Rs. 194.73 Lakhs) as at 31st March, 2025. Also, trade payables due to
Enterprises over which KMP are able to exercise significant influence amounts to Rs. 0.18 Lakhs (Previous Year Rs. Nil).

NOTE - 22.1 - Information to be disclosed under Micro, Small and Medium Enterprises Development Act, 2006

The informatiThe information as required to be disclosed under Micro, Small and Medium Enterprises Development Act, 2006 has been
determined to the extent such parties have been identified on the basis of information available with the Company. The amount of
princpal and interest outstanding during the year is given below :

Commitments

Capital Contracts remaining to be executed -

Notes:

(i) It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above pending resolution
of the respective proceedings.

(ii) The Company does not expect any reimbursements in respect of the above contingent liabilities

(iii) Future cash outflows in respect of the above matters are determined only on receipt of judgments / decisions pending at various
forums / authorities.

(iv) The Company’s pending litigations comprise of claims against the Company pertaining to proceedings pending with Sales/ VAT
tax and other authorities. The Company has reviewed all its pending litigations and proceedings and has adequately provided
for where provisions are required and disclosed as contingent liabilities where applicable, in its financial statements. The
Company does not expect the outcome of these proceedings to have a materially adverse effect on its financial statements.

NOTE - 37 - DISCLOSURES AS PER IND AS 116 “LEASES”

APPLICATION OF IND AS 116

Ministry of Corporate Affairs (“MCA”) through Companies (Indian Accounting Standards) Amendment Rules, 2019 and Companies
(Indian Accounting Standards) Second Amendment Rules, has notified Ind AS 116 Leases, which replaces the existing lease standard,
Ind AS 17 Leases, and other interpretations. Ind AS 116 sets out the principles for the recognition, measurement, presentation and
disclosure of leases for both lessees and lessors. It introduces a single, on-balance sheet lease accounting model for lessees.

The Company has adopted Ind AS 116, effective annual reporting period beginning 1st April, 2018 (Date of Transition to Ind AS) and
applied the standard to its leases, retrospectively, with the cumulative effect of initially applying the standard, recognised on the date
of initial application (1st April, 2018). Accordingly, the Company has measured its lease liability as at 1st April, 2018 at the present value
of the remaining lease payments, discounted using the interest rate of 6.60% p.a. implicit in the lease at the date of transition to Ind AS.

Notes forming part of financial statements

The Right-of-Use Asset has been recognised at an amount equal to the lease liability. Accordingly, a Right-of-Use asset of Rs. 25.61
Lakhs and a corresponding lease liability of same amount has been recognized in the financial year 2018-19. The cumulative effect on
transition in retained earnings net off taxes is Rs. Nil.

The Company has measured its lease liability at the present value of the remaining lease payments, discounted using the interest rate
of 7.50% p.a. implicit in the lease at the date of transition to Ind AS. Accordingly, a Right-of-Use asset of Rs. 2.74 Lakhs and a
corresponding lease liability of same amount has been recognized in the financial year 2021-22. The cumulative effect on transition in
retained earnings net off taxes is Rs. Nil.

The Company has measured its lease liability at the present value of the remaining lease payments, discounted using the interest rate
of 8.45% p.a. implicit in the lease at the date of transaction. Accordingly, a Right-of-Use asset of Rs. 7.00 Lakhs and a corresponding
lease liability of Rs. 4.09 Lakhs has been recognized in the financial year 2023-24. The cumulative effect on transition in retained
earnings net off taxes is Rs. Nil.

On application of Ind AS 116, the nature of expenses has changed from lease rent in previous periods to depreciation cost for the Right-
of-Use asset, and finance cost for interest accrued on lease liabilities.

Ind AS 116 has resulted in an increase in net cash inflows from operating activities and an increase in cash outflows from financing
activities on account of lease payments.The principal and interest portion of the lease payments have been disclosed under cash flow
from financing activities which for the year ended March 31st, 2025, amount to Rs. 2.46 Lakhs (Previous Year Rs. 2.46 Lakhs).

Notes:

1 The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflations, seniority, promotion
and other relevant factors including supply and demand in the employment market. The above information is certified by the
actuary.

2 The expected contribution for Defined Benefit Plan for the next financial year will be in line with F. Y 2024-25.

3 The company makes provident fund (PF) contributions to defined contribution benefit plans for eligible employees. Under the
scheme the company is required to contribute a specified percentage of the payroll costs to fund the benefits. The contributions
specified under the law are paid to the government authorities (PF commissioner).

4 Amount towards Defined Contribution Plan have been recognized under “Contribution to Provident and Other funds” in Note 30.

5 Defined Benefit Plan:

The Company has defined benefit plans for gratuity to eligible employees, contributions for which are made to Kotak Mahindra
Life Insurance Company Limited, who invests the funds as per IRDA guidelines. The details of these defined benefit plans
recognized in the financial statements are as under:

General Description of the Plan:

The Company operates a defined benefit plan (the Gratuity Plan) covering eligible employees, which provides a lump sum
payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the
respective employees salary and the tenure of employment.

The defined benefit plans typically expose the company to various risk such as :

(a) Investment risk:

The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference
to market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will
create plan deficit.

(b) Interest risk:

A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase in the
plan assets.

(c) Longevity risk:

The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan
participants both during and after their employment. An increase in the life expectancy of the plan participants will increase
the plan’s liability.

(d) Salary risk:

The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As
such, an increase in the salary of the plan participants will increase the plan’s liability.

(d) Interest Rate Risk:

Interest rate risk is the risk that the future cash flow with respect to interest payments on borrowing will fluctuate because of
change in market interest rates. The company’s exposure to the risk of changes in market interest rates relates primarily to the
Company’s long-term debt obligation with floating interest rates.

(e) Interest Rate Sensitivity:

Interest rate risk is measured by using the cash flow sensitivity for changes in variable interest rates. Any movement in the
reference rates could have an impact on the Company’s cash flows as well as costs.

The Company is subject to variable interest rates on some of its interest bearing liabilities. The Company’s interest rate exposure
is mainly related to debt obligations. The Company also uses a mix of interest rate sensitive financial instruments to manage the
liquidity and fund requirements for its day to day operations like short term loans.

As at 31st March, 2025, financial liability of Rs. 2,706.22 Lakhs was subject to variable interest rates. Increase/decrease of 100
basis points in interest rates at the balance sheet date would result in decrease/increase in profit/(loss) before tax of Rs. 0.24 Lakhs
for the year ended 31st March, 2025.

The model assumes that interest rate changes are instantaneous parallel shifts in the yield curve. Although some assets and
liabilities may have similar maturities or periods to re-pricing, these may not react correspondingly to changes in market interest
rates. Also, the interest rates on some types of assets and liabilities may fluctuate with changes in market interest rates, while
interest rates on other types of assets may change with a lag.

The risk estimates provided assume a parallel shift of 100 basis points interest rate across all yield curves. This calculation also
assumes that the change occurs at the balance sheet date and has been calculated based on risk exposures outstanding as at that
date. The period end balances are not necessarily representative of the average debt outstanding during the period.

(Note: The impact is indicated on the profit/(loss) before tax basis).

(f) Commodity Price Risk:

Commodity price risk arises due to fluctuation in prices of raw material. The company has a risk management frame work aimed at
prudently managing the risk arising from the volatility in raw material prices and freight costs. The company’s commodity risk is
managed centrally through well-established trading operations and control processes. In accordance with the risk management
policy, the Company carefully calibrates the timing and the quantity of purchase

(g) Credit Risk:

Credit risk is the risk that a customer or counterparty to a financial instrument fails to perform or pay the amounts due causing
financial loss to the company. Credit risk arises mainly from the outstanding receivables from customers. The company has a
prudent and conservative process for managing its credit risk arising in the course of its business activities. The credit ratings/
market standing of the customers are evaluated on a regular basis.

(h) Liquidity Risk:

Liquidity risk arises from the Company’s inability to meet its cash flow commitments on time. Prudent liquidity risk management
implies maintaining sufficient stock of cash and marketable securities . The Company maintains adequate cash and cash equivalents
along with the need based credit limits to meet the liquidity needs.

(i) Hedge Accounting:

The Company has established risk management policies to hedge the volatility arising from exchange rate fluctuations in respect
of firm commitments and highly probable forecast transactions, through foreign exchange forward and options contracts. The
proportion of forecast transactions that are to be hedged is decided based on the size of the forecast transaction and market
conditions. As the counterparty for such transactions are highly rated banks, the risk of their non-performance is considered to
be insignificant.

The Company uses derivatives to hedge its exposure to changes in movement in foreign currency. Where such derivatives are not
designated under hedge accounting, changes in the fair value of such hedges are recognised in the Statement of Profit and Loss.

The Company may also designate certain hedges, usually for large transactions, as a cash flow hedge under hedge accounting,
with the objective of shielding the exposure from variability in cash flows. The currency, amount and tenure of such hedges are
generally matched to the underlying transaction(s). Changes in the fair value of the effective portion of cash flow hedges are
recognised as cash flow hedging reserve in Other Comprehensive Income. While the probability of such hedges becoming
ineffective is very low, the ineffective portion, if any, is immediately recognised in the Statement of Profit and Loss.

NOTE - 42 - SEGMENT INFORMATION

The Company.s operating segments are established on the basis of those components of the group that are evaluated regularly
by the Executive Committee (the .Chief Operating Decision Maker. as defined in Ind AS 108 - .Operating Segments.), in deciding
how to allocate resources and in assessing performance. These have been identified taking into account nature of products and
services, the differing risks and returns and the internal business reporting systems.

(i) The Company has four principal operating and reporting segments; viz, Wire Division, Plastic, Product Division, Trading
Division and Power Division. The accourting policies adopted for segment reporting are in line with the accournting policy
of the Company with following additional policies for segment reporting.

(a) Revenue and Expenses have been identified to a segment on the basis of relationship to operating activities of the
segment. Revenue and Expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable
basis have been disclosed as ‘Unallocable’.

(b) Segment Assets and Segment Liabilities represent Assets and Liabilities in respective segments. Investments, tax
related assets and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been
disclosed as ‘Unallocable’.

NOTE - 43 - ADDITIONAL REGULATORY INFORMATION

1. During the financial year 2024-25, no proceeding has been initiated or pending against the company for holding any benami
property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

2. The Company has filed quarterly returns or statements with the banks in lieu of sanctioned working capital facilities, which are in
agreement with the books of account other than those as set out below: