(a) The Company has used a practical expedient by computing the expected toss allowance for trade receivables based on historical credit toss experience and adjustments for forward looking information. (refer note 2.55)

(b) The above trade receivables has been hypothecated as security for fund based and non fund based credit facility from the banks.

(c) The secured trade receivable including security against Bank Guarantee and Letter of Credit of Rs. 178.48 lakhs (as at March 31, 2025 Rs. 2,258.44 lakhs).

(d) Trade receivables are non-interest bearing and are generally on term of 0 to 90 days.

(e) No trade receivable are due from directors or other officers of the Company either severally or jointly with any other person nor any trade receivable are due firms or private companies in which any directors either a partner, a director or a member.

7. Rights, preferences and restrictions attached to equity shares

The Company has one class of equity shares having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

In respect of the year ended March 31, 2026, the directors propose that a final dividend of Rs. 1.00 per share be paid on fully paid equity shares. This equity dividend is subject to approval by shareholders at the Annual General Meeting and has not been included as liability in these financial statements. The proposed equity dividend is payable to all holders of fully paid equity shares. The total estimated equity dividend to be paid is Rs. 158.56 Lakhs. (refer note 2.49)

Nature and Purpose of Reserves:

Securities Premium

Securities Premium is used to record the premium on issue of shares and is utilised in accordance with the provisions of the Companies Act, 2013.

General Reserve

General Reserve is used to transfer profits from retained earnings for appropriation purposes. The amount is to be utilised in accordance with the provision of the Companies Act, 2013.

Share Based payment reserve

The share-based payment reserve account is used to record the value of equity-settled share-based payment transactions with employees. The amounts recorded in this account are transferred to securities premium upon exercise of stock options by employees.

Retained Earnings

Retained Earnings are the profits of the Company earned till date net of appropriations.

i) Sales Tax matters include disputes pertaining to stock transfers rejected, pending C and F Forms.

ii) Goods & Services Tax matters includes disputes pertaining to GST credit wrongly availed through form GST Tran -I, excess availment of input tax credit due to mismatch in GSTR-3B vis-a-vis GSTR-2A and msimatch in GSTR -3B visa-vis GSTR-9/9C.

iii) Customs, Excise and Service Tax matters includes disputes pertaining to denial of CENVAT credit availed on capital goods and input services.

iv) Income Tax matters includes disputes pertaining to applicability of Section 50C, disallowance under section 69C and disallowance of preoperative expenses, etc.

b. In respect of other matter:

Disputed claims pertain to litigations with respect of Projects of the Company filed by the customers on account of delayed completion of project, poor quality of building design and infrastructure and poor quality of material and various other matters. The Company has gone into appeal in respect of these matters in various forums.

The Company is of the view that it has a good case with likelihood of liability / any loss arising out of these tax and other matters being remote. Accordingly, pending settlement of the disputes, no adjustment has been made in the Financial Statements for the year ended March 31,2026 and March 31,2025 .

B. Commitments:

a) Estimated amount of contracts remaining to be executed on capital account - Rs. 155.45 lakhs (net of advances - Rs. 73.18 lakhs), [as at March 31,2025 - Rs. 591.47 lakhs (net of advances Rs. 375.04 lakhs).

b) The Company has an uncalled liability of Rs. 11,293.03 lakhs (as at March 31,2025- Rs. Nil) on partly paid equity shares of wholly owned subsidiary viz. Everest Buildpro Private Limited

c) The Company has other commitments, for purchases/sales orders which are issued after considering requirements per operating cycle for purchase/sale of goods and services, in normal course of business.

d) The Company did not have any long term commitments/contracts including derivative contracts for which there will be any material foreseeable losses.

2.38EMPLOYEE BENEFITa. Defined contribution plan

i) The Company makes contributions towards provident fund, superannuation fund and other retirement benefit plans for qualifying employees. Under the plans, the Company is required to contribute a specified percentage of payroll cost to the retirement benefit plan to fund the benefits. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.The Company recognised Rs. 27.86 lakhs (as at March 31,2025 Rs. 28.37 lakhs) for superannuation fund and Rs. 597.19 lakhs (as at March 31,2025 Rs. 597.09 lakhs) for providend fund contributions in the Statement of Profit and Loss.

b. Defined benefit plan

I. Gratuity fund

The Company's contribution towards its gratuity liability is a defined benefit retirement plan. The Company makes contributions to the trust from time to time which in turn makes contributions to the Employee's Group Gratuity-cum-Life Assurance scheme of the Life Insurance Corporation of India. The scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to fifteen days salary payable for each completed year of service or part thereof in excess of six months. Vesting occurs upon completion of five years of service.

The following tables set out the funded status of the gratuity plan and amounts recognised in the Company's financial statements as at March 31,2026:

(vi) The major categories of plan assets of the fair value of the total plan assets are as follows:

The planned assets of the Company are managed by the Life Insurance Corporation of India in terms of an insurance policy taken to fund obligations of the Company with respect to its gratuity plan. Information on categories of plan assets as at March 31,2026 and as at March 31,2025 has not been provided by the Life Insurance Corporation of India.

Terms and conditions of transactions with related parties

a. Remuneration Paid/Payable (including commission and sitting fees)

The amounts paid/payable are the amounts recognised as an expense during the financial year related to Key Management Personnel and Directors. The amounts do not include expense, if any, recognised toward postemployment benefits of Key Management Personnel. Such expenses are measured based on an actuarial valuation done for Company. Hence, amounts attributable to KMPs are not separately determinable

b. Sale of Goods:

Sales are made to related parties on the same terms as applicable to third parties in an arm's length transaction and in the ordinary course of business. The Company enters into sales transactions with related parties as per business practice and determines the transaction price considering the amount it expects to be entitled in exchange of transferring promised goods to the customer. The Trade receivable on sale of goods and receivable within credit period of 0 to 90 days.

c. Sale of Property, Plant and Equipment (PPE):

The Company enters into sales transactions with related parties as per business practice and determines the transaction price considering the amount it expects to be entitled in exchange of transferring PPE. The receivable on sale of PPE is not secured and receivable within credit period of 30 days.

d. Other Charges:

The Company receives other charges from a subsidiary Company basis the time and efforts spent by employees of the Company. Receivable balances are unsecured and require settlement in cash.

e. CSR contribution:

CSR contributions are paid to a subsidiary Company which is a section 8 Company. These are paid for CSR activities carried out by this Subsidiary Company basis the CSR obligations of the Company. The amounts contributed are utilised for the defined CSR purposes.

f. ICD given to Subsidiary Companies:

The Company has granted ICD to its subsidiary companies which are repayable as per the terms agreed. These ICD are granted to subsidiary companies at market rate of Interest. There is no impairment accounted in relation to these ICDs granted to Subsidiary Companies.

g. Reimbursement of expenses:

Reimbursement expenses are incurred and recovered/paid without markup basis the actual amount incurred. The reimbursement of expenses is for routine expenses paid on behalf of other related parties.

h. Security/Guarantee provided for Subsidiaries:

The Company has provided Corporate Guarantee against the borrowings of a Subsidiary Company. The Company has charged Guarantee fees basis benefit received by the Subsidiary Company basis Guarantee provided by the Company.

2.40 SEGMENT INFORMATIONa. Business segments:

The Company has determined following reporting segments based on the information reviewed by the Chief Operating Decision Maker (CODM). Building products includes manufacturing and trading of roofing products, boards and panels, other building products and accessories. Steel buildings consist of manufacture and erection of pre-engineered and smart steel buildings and its accessories.

b. Geographical segments:

Since the Company's activities/operations are primarily within the country and as such there is only one geographical segment.

c. Segment accounting policies:

In addition to the significant accounting policies applicable to the business segments as set out in note (a) above, the accounting policies in relation to segment accounting are as under:

i. Segment revenue and expenses:

Segment revenue and expenses include the respective amounts identifiable to each of the segments. Unallocable items in segment results include income from bank deposits and corporate expenses.

ii. Segment assets and liabilities:

Segment assets include all operating assets used by a segment and consist principally of operating cash, trade receivables, inventories and fixed assets, net of allowances and provisions, which are reported as direct offsets in the balance sheet. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities. Segment assets and liabilities do not include fixed deposits, advance income tax, borrowings and deferred income tax etc.

The measurement of each segment's revenues, expenses and assets is consistent with the accounting policies that are used in preparation of the Company's financial statements.

2.42LEASE COMMITMENTS Operating lease as a lessee

The Company has certain teases of premises with tease terms of 12 months or less. The Company applies the short term lease and lease of low value assets recognition exemptions for these leases and has recognised rent of Rs. 231.56 lakhs (as at March 31,2025 Rs. 200.21 lakhs). There are no non-cancellable lease arrangements as at the end of the year.

The Company has lease contracts for rental property and computers used in its operations and administrative work. Leases of rental property and computers have lease terms of 3 to 5 years which is the non-cancellable period. The Company obligations under its leases are secured by the lessor's title to the leased assets (refer note 2.04).

as at March 31,2025 figures are in italics.

The fair value of stock based awards to employees is calculated through the use of option pricing models, requiring subjective assumptions which greatly affect the calculated values. The said fair value of the options have been calculated using Black-Scholes option pricing model, considering the expected term of the options to be 5 years, expected dividend yield on the underlying equity shares and volatility in the share price and a risk free rate of interest. The Company's calculations are based on a single option valuation approach, and forfeitures are recognised as they occur. The expected volatility is based on historical volatility of the share price during the year after eliminating the abnormal price fluctuations.

2.55 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company's principal financial liabilities, other than derivatives comprises short term borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company's operations. The Company's principal financial assets include advances, trade and other receivables, and cash and cash equivalents that derive directly from its operations.

The Company's activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk.

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 risk of: currency risk and interest rate risk.

The Company is exposed to market risk primarily related to foreign exchange rate risk. Thus, the Company's exposure to market risk is a function of revenue generating and operating activities in foreign currencies.

Foreign exchange risk #

The Company regularly evaluates exchange rate exposure arising from the foreign currency transaction.

The Company uses forward contracts and derivative instruments to mitigate foreign exchange related risk exposures. When a forward contract is entered into for the purpose of being a hedge, the Company negotiates the terms of those contracts to match the terms of the hedged exposure. The Company's exposure to unhedged foreign currency risk as at March 31,2026 and March 31,2025 has been disclosed in note 2.37.

For the year ended March 31,2026, every 5 percentage point depreciation/appreciation in the exchange rate between the Indian rupee and U.S. dollar, would have affected the Company's profit before tax by Rs.64.38 Lakhs/ Rs. (64.38 ) Lakhs respectively.

For the year ended March 31,2026, every 5 percentage point depreciation/appreciation in the exchange rate between the Indian rupee and Euro would have affected the Company's profit before tax by Rs.29.33 Lakhs/ Rs. (29.33) Lakhs respectively.

For the year ended March 31,2026, every 5 percentage point depreciation/appreciation in the exchange rate between the Indian rupee and GBP would have affected the Company's profit before tax by Rs. 0.10 Lakhs/ Rs. (0.10) Lakhs respectively.

For the year ended March 31,2025, every 5 percentage point depreciation/appreciation in the exchange rate between the Indian rupee and U.S. dollar, would have affected the Group's profit before tax by Rs. 0.08 Lakhs/ Rs. (0.08) Lakhs respectively.

For the year ended March 31,2025, every 5 percentage point depreciation/appreciation in the exchange rate between the Indian rupee and Euro , would have affected the Group's profit before tax by Rs. 1.23 Lakhs/ Rs. (1.23) Lakhs respectively.

For the year ended March 31,2025, every 5 percentage point depreciation/appreciation in the exchange rate between the Indian rupee and GBP would have affected the Company's profit before tax by Rs. 2.08 Lakhs/ Rs. (2.08) Lakhs respectively.

# The amount for AED is not disclosed as it is immaterial.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company exposure to the risk of changes in market interest rates relates primarily to the Companies short-term debt obligations with floating interest rates. The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings.

Credit risk

Credit risk arises from the possibility that customers may not be able to settle their obligations as agreed. The Company is exposed to credit risk from its operating activities (primarily trade receivables and deposits) and from foreign exchange transactions.

Commodity risk

The Company is exposed to movement in metal commodity price of steel. Our sales contracts are on fixed price basis. Profitability in case of firm price orders is affected by movement in the prices of steel. To minimize the price volatility, company buy steel on spot price basis. For Roofing Business Company has long term contract for its main raw material.

Trade receivables

To manage the credit risk the Company periodically assesses the financial reliability of customers taking into account the financial condition and ageing of accounts receivable (refer note 2.11).

An impairment analysis is performed for all major customers at each reporting date on an individual basis. The calculation is based on historical data. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in note.

a. The Government of India notified the Code on 'Wages, 2019; the Code on Social Security, 2020; the Industrial Relations Code, 2020 and the Occupational Safety, Health and Working Conditions Code, 2020 (collectively, the "Labour Codes") on 21 November 2025. The Ministry of Labour & Employment published draft Central Rules and FAQs to enable assessment of the financial impact due to changes in Labour Codes. The Company has evaluated the impact of increased employee benefit obligations arising from the implementation of the Labour Codes in consultation with external experts. Accordingly, the Company has recognised an additional charge of Rs.1,634.14 lakhs pertaining to gratuity which is included as an exceptional item in the financial statements for year ended 31 March 2026. The Company continues to monitor the finalisation of Central/ State Rules and clarifications from the Government on other aspects of the Labour Codes and would provide appropriate accounting effect as and when such clarifications are issued/ rules are notified

b. During the year, the Company sold the office premises situated in Mumbai resulting in a profit of Rs. 304.58 Lakhs which is disclosed as an exceptional item in the financial statements.

c. During the previous year ended 31 March 2025, the Company sold its property at Noida resulting in a profit of Rs. 383.93 Lakhs and disclosed it as an exceptional item in the financial statements.

d. In the previous year, pursuant to the issuance of an Eligibility Certificate to the Company under the Package Scheme of Incentives, 2013 for its Lakhmapur plant expansion, the Company is entitled to receive GST incentives. Accordingly, the Company has recognized income of Rs. 949.63 lakhs in the year ended 31 March 2025, representing GST incentives receivable of this amount:

(i) Rs.778.92 lakhs pertains to the period from the commencement of production in October 2019 up to 31 March 2024, and has been disclosed as an Exceptional Item; and

(ii) Rs.170.71 lakhs pertains to the financial year 2024-25 and has been included under Revenue from Operations'.

e. During the year ended 31 March 2026, the Management reviewed the recoverable amount of equity investments and Inter Corporate Deposits given to its wholly owned subsidiary, Everest Buildpro Private Limited. This review was based on appropriate valuation methodologies, considering key assumptions such as projected revenue, margins, discount rate and terminal growth rate. Basis this review, the Company has recognised an Impairment loss Rs. 2,870.00 lakhs which is disclosed as an exceptional item in the statement of profit and loss. This loss comprises Rs. 1,500.88 lakhs recognised on the Company's investment in equity shares of the subsidiary and Rs. 1,369.12 lakhs in respect of the Inter Corporate Deposits granted by the Company to the subsidiary. These estimate used are subject to inherent uncertainties and may require revision based on future development.

2.57 The Company has used accounting software SAP for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for aft relevant transactions recorded in the software, except that audit trait feature is not enabled for certain changes made using privileged/ administrative access rights to the SAP application and the underlying database. Further no instance of audit trait feature being tampered with was noted in respect of accounting software where the audit trait has been enabled. Additionally, the audit trait of prior years has been preserved by the Company as per the statutory requirements for record retention to the extent it was enabted and recorded in the respective years.

2.59 OTHER STATUTORY INFORMATION

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

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

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

(iv) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act (Restricted in number of Layers) Rule, 2017

(v) The Company has not advanced or loaned or invested funds to any other person(s) or entity, including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(b) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

(vi) The Company has not received any fund from any person or entity, including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Group 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 does not have any 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) Quarterly returns or statements of current assets filed by the Company with the banks in connection with the working capital limit sanctioned are agreement with the books of accounts.

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

2.60 The Company had executed a term sheet during the year ended March 31, 2026 for sale of certain portion of its land at Podanur. The said asset has been classified in the balance sheet at it's carrying amount as Asset held for Sale. Subsequent to the year end, the Company has completed the execution of the sale deed on April 10, 2026.

2.61 EVENTS OCCURRING AFTER THE REPORTING PERIOD

There were no significant adjusting events after the end of the reporting period which require any adjustment or disclosure in the standalone financial statements