(l) Provisions and contingent liabilities

Provisions are recognized when the Company has a present legal or constructive obligation as
a result of a past events, it is probable that an outflow of resources will be required to settle
the obligations, and a reliable estimate of the amount of the obligation can be made.

Provisions are determined based on the best estimate required to settle the obligation at the
Balance Sheet date. Provisions are reviewed at each Balance Sheet date and adjusted to
reflect current best estimates. Provisions are not recognized for future operating losses. 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 interest
expense.

Contingent liabilities are disclosed by way of a note to the financial statements when there is
a possible obligation arising from past events, the existence of which will be confirmed only
by the occurrence or non-occurrence of one or more uncertain future events not wholly
within the control of the Company or a present obligation that arises from past events where
it is either not probable that an outflow of resources will be required to settle or a reliable
estimate of the amount cannot be made.

(m) Employee Benefits

Liabilities for wages and salaries, including non-monetary benefits that are expected to be
settled wholly within 12 months after the end of the period in which the employees render
the related service are recognized in respect of employees' services up to the end of the
reporting period and are measured at the amounts expected to be paid when the liabilities
are settled. The liabilities are presented as current employee benefit obligations in the
balance sheet.

Company has liabilities for earned and sick leaves that are not expected to be settled wholly
within 12 months after the end of the period in which the employees render the related
services. But the Company does not have an unconditional right to defer settlement for any of
these obligations, hence the entire amount of provision is presented as short-term
obligation.

The liabilities for service awards are not expected to be settled wholly within 12 months after
the end of the period in which the employees render the related service. They are therefore
measured as the present value of expected future payments to be made in respect of services
provided by employees up to the end of the reporting period using the projected unit credit
method. The benefits are discounted using the market yields at the end of the reporting
period that have terms approximating to the terms of the related obligation.
Remeasurements as a result of experience adjustments and changes in actuarial
assumptions are recognized in profit or loss.

Other Post-employment obligations

The Company operates the following post-employment schemes:

(a) Defined benefit plan - gratuity and cash rewards at retirement

(b) Defined contribution plans - superannuation fund and provident fund
(a) Defined benefit plans - Gratuity and cash rewards at retirement

The liability or asset recognised in the balance sheet in respect of defined benefit gratuity

plans is the present value of the defined benefit obligafion at the end of the reporfing period
less the fair value of plan assets. The defined benefit obligafion is calculated annually by
actuaries using the projected unit credit method.

The Company provides for gratuity, a defined benefit plan (the "Gratuity Plan") covering
eligible employees in accordance with the Payment of Gratuity Act, 1972. The Gratuity Plan
provides a lump sum payment to vested employees at refirement, death or terminafion of
employment, of an amount based on the respecfive employee's salary and the tenure of
employment. This plan is funded.

The Company also has 'Cash reward at refirement' plan which provides a payment of Rs.
2,500 for each year of service rendered at the fime of normal refirement. This plan is
unfunded.

The liability or asset recognized in the balance sheet in respect of defined benefit plans is the
present value of the defined benefit obligafion at the end of the reporfing period less the fair
value of plan assets (as applicable). The defined benefit obligafion is calculated annually by
actuaries using the projected unit credit method.

The present value of the defined benefit obligafion is determined by discounfing the
esfimated future cash outflows by reference to market yields at the end of the reporfing
period on government bonds that have terms approximating to the terms of the related
obligafion.

The net interest cost is calculated by applying the discount rate to the net balance of the
defined benefit obligafion and the fair value of plan assets. This cost is included in employee
benefit expense in the statement of profit and loss.

Remeasurement gains and losses arising from experience adjustments and changes in
actuarial assumpfions are recognized in the period in which they occur, directly in other
comprehensive income. They are included in retained earnings in the statement of changes in
equity and in the balance sheet.

Changes in the present value of the defined benefit obligafion resulfing from plan
amendments or curtailments are recognized immediately in profit or loss as past service cost.

(b) Defined contribution Plans - Superannuation Fund, Provident Fund and National Pension
Scheme (NPS)

The Company contributes on a defined contribution basis to Employees' Provident Fund,
National Pension Scheme and Superannuation Fund. The contribution towards Provident
Fund is made to regulatory authorities and contribution towards Superannuation Fund and
National Pension Scheme is made to Life Insurance Corporation of India. Such benefits are
classified as defined contribution plans as the Company does not carry any further
obligations, apart from the contributions made on a monthly basis. Contributions are
recognized as employee benefit expense when they are due.

Termination benefits

Termination benefits are payable when employment is terminated by the company before
the normal retirement date, or when an employer accepts voluntary redundancy in exchange

for these benefits. The company recognizes termrnafion benefits in the Statement of Profit
and Loss in the year as an expense as and when incurred.

Other accounting policies:

(a) 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 the Company's
Managing Director. Refer note 36 for segment information presented.

(b) Rental Income

Rental income arising from operating leases on properties is accounted for on a straight-line
basis over the lease terms and is included in other income in the statement of profit and loss.

(c) Interest income

Interest income is accrued on time basis, by reference to the principal outstanding and at the
effective interest rate applicable, which is the rate that exactly discounts estimated future
cash receipts through the expected life of the financial asset to that asset's net carrying
amount on initial recognition.

(d) Sale of Raw materials and scrap (Other operating Revenue)

Revenue from sale of raw material and scrap is recognised at point in time when control is
transferred to the customer - based on delivery terms, payment terms, customer acceptance.

(e) Foreign currency translation

(i) Functional and presentation currency

Items included in the financial statements of the Company are measured using the
currency of the primary economic environment in which the entity operates ('the
functional currency'). The financial statements are presented in Indian rupee (INR),
which is the Company's functional and presentation currency.

(ii) Transactions and balances

Foreign currency transactions are translated into the functional currency using the
exchange rates at the dates of the transactions. Foreign exchange gains and losses
resulting from the settlement of such transactions and from the translation of monetary
assets and liabilities denominated in foreign currencies at year end exchange rates are
recognized in profit or loss.

Non-monetary items that are measured at fair value in a foreign currency are translated
using the exchange rates at the date when the fair value was determined. Translation
differences on assets and liabilities carried at fair value are reported as part of the fair
value gain or loss. For example, translation differences on non-monetary assets and
liabilities such as equity instruments held at fair value through profit or loss are
recognised in profit or loss as part of the fair value gain or loss and translation differences
on non-monetary assets such as equity investments classified as FVOCI are recognised in
other comprehensive income.

Non-monetary items that are measured in terms of historical cost in a foreign currency
are translated using the exchange rates at the dates of the initial transactions.

(f) Other Financial Liabilities

Other Financial liabilities are measured at amortised cost using effective interest rate
method.

(g) Leases

As a Lessee:

Leases are recognised as a Right of use asset and a corresponding liability at the date at which
the leased asset is available for use by the Company. Each lease payment is allocated between
the principal (liability) and finance cost. The finance cost is charged to the Statement of Profit
and Loss over the lease period so as to produce a constant periodic rate of interest on the
remaining balance of the liability for each period.

Assets and liabilities arising from a lease are initially measured on a present value basis. Lease
liabilities include the net present value of the fixed payments (including in-substance fixed
payments), less any lease incentives receivable.

Lease payments to be made under reasonably certain extension options are also included in
the measurement of the liability. The lease payments are discounted using the interest rate
implicit in the lease. If that rate cannot be readily determined, the lessee's incremental
borrowing rate is used, being the rate that the lessee would have to pay to borrow the funds
necessary to obtain an asset of similar value in a similar economic environment with similar
terms and conditions.

Right of use assets are measured at cost comprising the following:

• the amount of the initial measurement of lease liability

• any lease payments made at or before the commencement date less any lease incentives
received

• any initial direct costs, and

• restoration costs.

Right of use asset is depreciated over the shorter of the asset's useful life and the lease term
on a straight-line basis. If the Company is reasonably certain to exercise a purchase option,
the Right of use asset is depreciated over the underlying asset's useful life.

Extension and termination options are included in a number of property and equipment
leases across the company. These terms are used to maximise operational flexibility in terms
of managing contracts. The majority of extension and termination options held are
exercisable only by the company and not by the respective lessor.

Payments associated with short-term leases and leases of low-value assets are recognised on
a straight-line basis as an expense in the Statement of Profit and Loss. Short-term leases are
leases with a lease term of 12 months or less. Low value assets mainly comprise small items of
office equipment.

As a lessor

Lease income from operating leases where the company is a lessor is recognized in income on
a straight-line basis over the lease term unless the receipts are structured to increase in line
with expected general inflation to compensate for the expected inflationary cost increases.
The respective leased assets are included in the balance sheet on their nature.

(h) Impairment of assets

Goodwill is not subject to amortization and is tested annually for impairment, or more
frequently if events or changes in circumstances indicate that they might be impaired.
Property, Plant and Equipment and Intangible assets are tested for impairment whenever
events or changes in circumstances indicate that the carrying amount may not be
recoverable. An impairment loss is recognized for the amount by which the asset's carrying
amounts exceeds its recoverable amount. The recoverable amount is higher of an asset's fair
value less costs of disposal and value in use. For the purpose of assessing impairment, assets
are grouped at the lowest levels for which there are separately identifiable cash inflows which
are largely independent of the cash inflows from other assets or group of assets (cash¬
generating units). Non-financial assets other than goodwill that suffered an impairment are
reviewed for possible reversal of the impairment at the end of each reporting period.

(i) Offseffing financial instruments

Financial assets and liabilities are offset and the net amount is reported in the balance sheet
where there is a legally enforceable right to offset the recognized amounts and there is an
intention to settle on a net basis or realize the asset and settle the liability simultaneously. The
legally enforceable right must not be contingent on future events and must be enforceable in
the normal course of business and in the event of default, insolvency or bankruptcy of the
Company or the counterparty.

(j) Contributed equity

Equity shares are classified as equity. Incremental costs directly attributable to the issue of
new shares are shown in equity as a deduction, net of tax, from the proceeds.

(k) Dividends

Provision is made for the amount of any dividend declared, being appropriately authorized
and no longer at the discretion of the entity, on or before the end of the reporting period but
not distributed at the end of the reporting period. As per the corporate laws in India, a
distribution is authorised when it is approved by the shareholders. A corresponding amount
is recognised directly in equity.

(l) Earnings per share

(i) Basic earnings per share

Basic earnings per share is calculated by dividing the profit attributable to owners of the
Company by the weighted average number of equity shares outstanding during the
financial year.

(ii) Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determinafion of basic
earnings per share to take into account:

• the after income tax effect of interest and other financing costs associated with dilufive
potential equity shares, and

• the weighted average number of addifional equity shares that would have been
outstanding assuming the conversion of all dilufive potenfial equity shares.

(m) Exceptional items:

When the items of income and expense within profit or loss from ordinary activities are of
such size, nature or incidence that their disclosure is relevant to explain the performance of
the Company for the period, the nature and amount of such items are disclosed separately as
exceptional item by the Company.

(n) Rounding off of amounts:

All amounts disclosed in the financial statements and notes have been rounded off to the
nearest lakhs as per the requirement of Schedule III, unless otherwise stated.

2. Critical estimates and judgements

The preparation of financial statements requires the use of accounting estimates which, by
definition, will seldom equal the actual results. Management also needs to exercise judgement in
applying the Company's accounting policies. This note provides an overview of the areas that
involved a higher degree of judgement or complexity, and of items which are more likely to be
materially adjusted due to estimates and assumptions turning out to be different than those
originally assessed.

In the process of applying the Company's accounting policies, management has made the
following critical estimates and judgements, which have the most significant effect on the amounts
recognized in the financial statements:

i. Useful lives of property, plant and equipment and intangible assets

The Company reviews the useful lives of property, plant and equipment and intangible assets
at the end of each reporting period. This reassessment may result in change in depreciation
and amortisation expense in future periods.

ii. Defined benefit obligations

The cost of the defined benefit gratuity plan and the present value of the gratuity obligations
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 which is most subject to change is the discount rate. In
determining the appropriate discount rate for plans operated in India, the management

considers the interest rates of government bonds. The mortality rate is based on Indian
Assured Lives Mortality (IALM) (2006-08) (modified) Ulfimate. 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 rates. For further details about
gratuity obligafions are given in notes 21 and 22.

iii. Expected Credit Loss:

Trade receivables do not carry interest and are stated at their normal value as reduced by
appropriate allowances for esfimated irrecoverable amounts. Individual trade receivables
are written off when management deems them not collectable. Impairment is made on the
expected credit loss model, which is the present value of the cash shortfall over the expected
life of the financial assets. The impairment provisions for financial assets are based on
assumption about the risk of default and expected loss rates. Judgement in making these
assumption and selecfing the inputs to the impairment calculafion are based on past history,
exisfing market condifion as well as forward looking esfimates at the end of each reporfing
period.

iv. Deferred tax assets:

A deferred tax asset is recognised to the extent that it is probable that future taxable profit will
be available against which the deductible temporary differences and tax losses can be
ufilised. Accordingly, the company exercises its judgement to reassess the carrying amount of
deferred tax assets at the end of each reporfing period. Refer note 15 for details of deferred
taxas atyearend.

v. Legal contingencies

The Company has received various orders and notices from tax and regulatory authorities.
The outcome of these matters may have a material effect on financial position and results of
operations of cash flows. Management regularly analyzes current information about these
matters and provides provisions for probable contingent losses including the estimate of legal
expenses to resolve the matters. In making the decisions regarding the need for loss
provisions, management considers the degree of probability of an unfavorable outcome and
the ability to make a sufficiency reliable estimate of the amount of loss. The filing of suit or
formal assertion of a claim against the Company or the disclosure of any such suit or
assertions, does not automatically indicate that a provision of a loss may be appropriate.
Refer note 35 for details of contingent liabilities as at year end.

vi. Segment reporting

Ind-AS 108 Operating Segments requires management to determine the reportable
segments for the purpose of disclosure in financial statements based on the internal
reporting reviewed by Chief Operating Decision Maker (CODM) to assess performance and
allocate resources. The standard also requires management to make judgements with
respect to aggregation of certain operating segments into one or more reportable segment.

The Company has determined that the Chief Operating Decision Maker (CODM) is the
Company's Managing Director, based on its internal reporting structure and functions.
Operating segments used to present segment information are identified based on the

internal reports used and reviewed by the Managing Director to assess performance and
allocate resources. Refer note 36 for further details of the operating segments identified.

vii. Fair value of Investment Properties

The fair value of land and building recognized under investment property is appraised each
year by independent external valuer. The best evidence of fair value are current prices in an
active market for similar investment property. In the absence of such information, the
company determines the amount within a range of reasonable fair value estimates. The
underlying assumptions of these estimates are explained in more detail in note 4.

viii. Recent accounting 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 December 31, 2024, MCA has notified amendments to the leases standard
(IND AS 116) for sale-and-leaseback transactions. The amendments impact how a seller-
lessee accounts for variable lease payments that arise in a sale-and-leaseback transaction, in
situations, where some or all the lease payments are variable lease payments, in particular,
where the variability does not relate to an index or a rate. This amendment does not have any
material impact on the amounts recognized in the prior periods and are not expected to
significantly affect the current or future periods.

(v) Presenting Cashflows

The Company classifies cash outflows to acquire or construct investment property as investing and
rental inflows as operating cashflow.

Estimation of fair value

The Company obtains independent valuation for its investment properties at least annually. The best
evidence of fair value is current prices in an active market for similar properties. Where such
information is not available, the Company considers information from a variety of sources including:

• current prices in an active market for properties of different nature or recent prices of similar
properties in less active markets, adjusted to reflect those differences

• discounted cash flow projections based on reliable estimates of future cash flows

• capitalized income projections based upon a property's estimated net market income, and a
capitalization rate derived from an analysis of market evidence

The fair value of investment properties have been determined by an independent valuer who is a
registered valuer. The fair value is measured using external expert appraisals and by applying input
factors for comparable assets not traded on active markets. All resulting fair value estimates for
investment properties are included in level 2.

A Defined contribution plan

Provident and superannuation fund

The Company has certain defined contribution plans. Contributions are made to provident fund for employees at the
rate of 12% of basic salary as per regulations as well as to superannuation fund. The contributions are made to registered
provident fund administered by the Government and superannuation trust administered through Life Insurance
Corporation of India (LIC). The obligation of the Company is limited to the amount contributed and it has no further
contractual nor any constructive obligation. The expense recognised during the year towards provident fund (defined
contribution plan) is INR 173.90 lakhs (December 31, 2023 - INR 172.98 lakhs) and other defined contribution plan
(superannuation fund and National Pension scheme) is INR 142.91 lakhs (December 31, 2023 - INR 129.70 lakhs).

B Defined benefit plan

I Compensated absences

Company has liabilities for earned and sick leave that are not expected to be settled wholly within 12 months after
the end of the period in which the employees render the related services. These obligations are therefore
measured as the present value of expected future payments to be made in respect of services provided by
employees up to the end of the reporting period using the projected unit credit method. The benefits are
discounted using the appropriate market yields at the end of the reporting period that have terms approximating
to the terms of the related obligation. Remeasurements as a result of experience adjustments and changes in
actuarial assumptions are recognised in profit or loss.

The Company does not have an unconditional right to defer settlement for any of these obligations, hence the
entire amount of provision is presented as current. However, based on past experience, the Company does not
expect all employees to take the full amount of accrued leave or require payment within the next 12 months."
Provision for Compensated absences (Unfunded) is INR 548.66 lakhs (December 31.2023 - INR 463.58 lakhs).

Through its defined benefit plan, the Company is exposed to a number of risks, the most significant of which are detailed
below:

Asset volatility:

The plan liabilifies are calculated using a discount rate set with reference to bond yields; if plan assets underperform this
yield, this will create a deficit. All plan assets are maintained in a trust fund managed by a public sector insurer i.e., LIC of
India. LIC has a sovereign guarantee and has been providing consistent and compefifive returns over the years. The
Company has opted for a tradifional fund wherein all assets are invested primarily in risk averse markets. The Company
has no control over the management of funds but this opfion provides a high level of safety for the total corpus. A single
account is maintained for both the investment and claim settlement and hence, 100% liquidity is ensured. Also, interest
rate and inflafion risks are taken care of.

Changes in bond yields:

A decrease in bond yields will increase plan liabilifies, although this will be parfially offset by an yield increase in the value
of the plans' bond holdings.

Future salary escalation and inflation risk:

Since price inflafion and salary growth are linked economically, they are combined for disclosure purposes. Rising
salaries will often result in higher future defined benefit payments resulfing in higher present value of liabilifies. Further,
unexpected salary increases provided at the discrefion of the management may lead to uncertainfies in esfimafing this
increasing risk.

Asset-Liability mismatch risk:

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

Life expectancy risk:

Increases in life expectancy of employee will result in an increase in the plan liabilifies. This is parficularly significant
where inflafionary increases result in higher sensifivity to changes in life expectancy.

III Cash rewards at retirement

The Company has a defined benefit plan of cash rewards whereby at the time of normal retirement, INR 2,500 is payable
to employees for each year of service rendered. The scheme is unfunded.

Through its defined benefit plan, the Company is exposed to a number of risks, the most significant of which is detailed
below:

Changes in bond yields:

A decrease in bond yields will increase plan liabilifies.

IV Long service awards

Long Service Awards are payable to employees on complefion of specified years of service wherein a cash amount as a
percentage of monthly basic salary is paid at the fime of refirement/resignafion/terminafion (ranging from 75% to 300%
of basic monthly salary basis number of years served). There are no changes in acturial assumpfions used compared to
previous year and are aligned with the other defined benifit plans menfioned above.

The expense recognised during the year towards Long service awards is INR 5.14 lakhs (December 31, 2023 - INR 10.09
lakhs)

The Company's pending litigations comprise of proceedings pending with service tax authorities. The Company has
reviewed all its pending litigations and proceedings and has adequately provided for cases 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 results. In respect of the claims against the
Company not acknowledged as debts as above, the management does not expect these claims to succeed. It is not practical
to indicate the uncertainty which may affect the future outcome and estimate the financial effects of the above liabilities.

The Supreme Court had issued a Judgement in case of "Vivekananda Vidyamandir And Others Vs The Regional Provident
Fund Commissioner (II) West Bengal" and the related circular (Circular No. C-I/1(33)2019/Vivekananda Vidya Mandir/284)
dated March 20, 2019 was issued by the Employees' Provident Fund Organisation in relation to non-exclusion of certain
allowances from the definition of "basic wages" of the relevant employees for the purposes of determining contribution to
provident fund under the Employees' Provident Funds & Miscellaneous Provisions Act, 1952. In the assessment of the
management, the aforesaid matter is not likely to have a significant impact.

The Code on Social Security, 2020 ('Code') relating to employee benefits received Presidential assent in September 2020.
However, the date on which the Code will come into effect has not yet been notified. The Company will assess the impact of
the Code when it comes into effect and will record any related impact in the period the Code becomes effective.

b) Capital commitments

Estimated amount of contracts remaining to be executed on capital account (net of advances) and not provided for is
INR 1306.28 lakhs (December 31, 2023 : INR 956.98 lakhs).

c) Lease commitments

There were no non-cancellable operating leases as on December 31, 2024 and December 31, 2023.

Level 1: The fair value of financial instruments traded in acfive markets (such as publicly traded derivafives and equity
securifies) is based on quoted market prices at the end of the reporfing period. The mutual funds are valued using the
closing NAV. The quoted market price used for financial assets held by the company is the NAV of these mutual funds as at
year end. These instruments are included in level 1.

Level 2: The fair value of financial instruments that are not traded in an acfive market is determined using valuafion
techniques which maximise the use of observable market data and rely as little as possible on enfity-specific esfimates. If
all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs are not based on observable market data, the instrument is included in
level 3.

ii) Valuation technique used to determine fair value

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged
in a current transaction between willing parties, other than in a forced or liquidation sale.

Specific valuation techniques used to value financial instruments include:

The use of quoted market prices for same or similar instruments as on the reporting date.

iii) Valuation process

The Finance department of the Company includes a team that oversees the valuations of financial assets and liabilities
required for financial reporting purposes, including level 3 fair values.

External valuers are involved for valuation of significant assets, such as unquoted financials assets. Involvement of
external valuers is decided by the finance team. Selection criteria includes market knowledge, reputation,
independence and whether professional standards are maintained. The Finance team decides, after discussions with
the Company's external valuers, which valuation techniques and inputs to use for each case.

Changes in level 3 fair values are analysed at the end of each reporting period during the valuation discussion between
the valuation team and external valuer. As part of this discussion the team presents a report that explains the reason for
the fair value movements.

iv) Fair value of financial assets and liabilities measured at amortised cost

The carrying amounts of trade and other receivables, security deposits, fixed deposits with banks, interest accrued on
deposits, cash and cash equivalents, other bank balances, trade payables, security deposits taken, capital creditors,
employee benefits payable, unpaid dividend and other payables are considered to be reasonable approximation of their
fair values.

38 Financial risk management

The Company's activities exposes it to market risk, liquidity risk and credit risk. This note explains the sources of risk
which the entity is exposed to and how the entity manages the risk. The Company's risk management is carried out by
the Company's finance department under policies approved by the Board of Directors. The Finance department
identifies, evaluates and manages financial risk. This note explains the Company's exposure to financial risks and how
these risks could affect the Company's future financial performance.

(A) Credit risk

The Company is exposed to credit risk from its operating activities (primarily trade receivables) and deposits with banks
and other financial instruments. For banks and other financial institutions, only high rated banks/ financial institutions
are accepted. The balances with banks, security deposits are subject to low credit risk and the risk of default is negligible
or nil. Hence, no provision has been created for expected credit loss for credit risk arising from these financial assets. The
Company considers the probability of default upon initial recognition of asset and whether there has been a significant
increase in the credit risk on an ongoing basis throughout each reporting period. To assess whether there is a significant
increase in credit risk the Company compares the risk of a default occurring on the asset as at the reporting date with the
risk of default as at the date of initial recognition. It considers available reasonable and supportive forward-looking
information, for e.g. external credit rating (to the extent available), actual or expected significant adverse changes in
business, financial or economic conditions that are expected to cause a significant change to borrower's ability to meet
its obligations.

Trade receivables

Credit risk arises from the possibility that customer will not be able to settle their obligations as and when agreed. To
manage this, the Company periodically assesses the financial reliability of customers, taking into account the financial
condition, current economic trends, analysis of historical bad debts, ageing of accounts receivable and forward looking
information. Individual credit limits are set accordingly. General payment terms include advances and payments with a
credit period ranging from 30 to 60 days. The Company has a detailed review mechanism of overdue customer
receivables at various levels within the organisation. The company has used a practical expedient by computing the
expected credit loss allowance for trade receivables based on provision matrix. The provision matrix takes into account
historical credit loss experience and adjusted for forward looking information.

(C) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes
in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and price risk. Financial
instruments affected by market risk include loans give, deposits, trade receivables, trade payables, derivative financial
instruments and other financial assest and liabilities.

I) Foreign currency risk

The company is engaged in international trade and thereby exposed to foreign exchange risk arising from foreign
currency transactions, primarily with respect to the USD and EUR. Foreign exchange risk arises from recognised assets
and liabilities denominated in a currency that is not the Company's functional currency (INR). The Company's
exposure to foreign currency arises from short term receivables and payables where fluctuations in the foreign
exchange rates are generally not significant and consequently limiting the Company's exposure.

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. Generally, the Company's exposure to the risk of changes in the market interest rates
primarily relate to the Company's short term debt obligations with the floating interest rates. The Company does not
have any borrowings in the current year as well as previous year.

III) Price risk

The Company's exposure to equity securities price risk arises from investments held by the Company and classified in
the Balance sheet either as fair value through OCI or fair value through profit and loss. The Company invests into
mutual funds which are subject to price risk changes. These investments are generally for short duration and
therefore impact of price changes is generally not significant. Investment in these funds are made as a part of Treasury
management activities.

39 Capital Management

a) Risk management

The Company's objectives when managing capital are to safeguard their ability to continue as a going concern, so that
they can continue to provide returns for shareholders and benefits for other stakeholders, and maintain an optimal
capital structure to reduce the cost of capital. For the purpose of the Company's capital management, capital includes
issued equity capital and all other equity reserves attributable to the equity holders of the Company. The primary
objective of the Company's capital management is to maximise the shareholders value. The Company manages its
capital structure and makes adjustments in the light of changes in the economic conditions and the requirements of
the financial covenants, if any. The total equity as at December 31, 2024 is INR 86,711.94 lakhs (December 31, 2023:
INR 73,199.41 lakhs).

No changes were made in the objectives, policies or processes for managing capital during the years ended December
31, 2024 and December 31, 2023. The Company has no borrowings during the years under consideration and hence
there has been no breach in the financial covenants of any borrowings.

b) Dividends

As a part of Company's capital management policy, dividend distribution is also considered as a key element and
management ensures that dividend distribution is in accordance with defined policy. Below mentioned are the details
of dividend distributed and proposed during the year.

42 a. Data center for the ERP used by the management is hosted in a place outside India. Considering the above

requirement, the Company has developed a mechanism to take daily backup of the books of account in India.

However, for the backup of Audit trail logs, the Company was able to take backup from October 09, 2024 for
database layer and from December 26, 2024 for application layer.

b. The company has used two accounting software systems: SAP as the core accounting software and Microsoft

Excel for certain other information, including payroll.

i. SAP Application Level:

SAP has a feature for recording audit trail logs. However, due to technical complexities, this feature was
not fully operational at the application level for certain tables and documents and certain users with
specific access from January 1, 2024 to September 26, 2024.

Management has taken appropriate steps to comply with the given requirements from September 27,
2024 onwards with respect to this.

ii. SAP Database Level:

On account of technical complexities, for activities related to ""Data Query and Manipulation,"" audit trail
feature was fully enabled from October 8, 2024. Also It should be noted that due to inherent limitations of
SAP, database logs do not capture pre-modified values for any changes performed.

Microsoft Excel:

iii. The Microsoft Excel used by the company does not have an audit trail (edit log) feature.

43 Additional regulatory information required by Schedule III:

(i) Details of benami property held

No proceedings have been initiated on or are pending against the Company for holding any benami property
under the Prohibition of Benami Property Transactions Act, 1988 (as amended in 2016) and Rules made
thereunder."

(ii) Willful defaulter

The Company has not been declared willful defaulter by any bank or financial institution or government or any
government authority.

(iii) Relationship with struck off companies

The Company has no transactions with the companies struck off under Companies Act, 2013 or Companies Act,
1956.

(iv) Compliance with number of layers of companies

The Company doesn't have any investment in associate or joint venture or subsidiary, hence this disclosure is not
applicable.

(v) Compliance with approved scheme(s) of arrangements

The company has not entered into any scheme of arrangement which has an accounting impact on current or
previous financial year.

(vi) Utilisation of borrowed funds and share premium

a. The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any
other sources or kind of funds) to any other person or entity, including foreign entities (Intermediaries) with the
understanding (whether recorded in writing or otherwise) that the Intermediary shall:

i. 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

ii. provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries:

b. The Company has not received any funds from any person or entity, including foreign entities (Funding Party)
with the understanding (whether recorded in writing or otherwise) that the Company shall:

i. 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

ii. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(vii) Undisclosed income

There is no income surrendered or disclosed as income during the current or previous year in the tax
assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

(viii) Details of crypto currency or virtual currency

The Company has not traded or invested in crypto currency or virtual currency during the current or previous
year.

(ix) Valuation of PP&E, intangible asset and investment property

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

(x) There are no charges or satisfaction which are yet to be registered with the Registrar of the Companies beyond
the statutory period.

(xi) Payment to political parties

There were no payments made by the Company to political parties during current or previous year.

(xii) Borrowing secured against current assets

The Company does not have any borrowings from banks or financial institutions or government or government
authorities or any other lender.

(xiii) No loans or advances are given to Key Managerial Persons during the year ended December 31, 2024.

44 Previous year figures

Previous year figures have been reclassified to conform to current year's classification.

For Price Waterhouse Chartered Accountants LLP For and on behalf of the Board of Directors

Firm Registration Number: 012754N/ N500016 of ELANTAS Beck India Limited

Sarah George Anurag Roy Usha Rajeev Sanjay Kulkarni Ashutosh Kulkarni

Partner Managing Director Director Chief Financial Officer Company Secretary

Membership No.: 045255 DIN: 07444595 DIN: 05018645 M. No.: A18549

Place : Mumbai Place : Mumbai Place : Mumbai Place : Mumbai Place : Mumbai

Date : Feb. 18, 2025 Date : Feb. 18, 2025 Date : Feb. 18, 2025 Date : Feb. 18, 2025 Date : Feb. 18, 2025