2.16 Provisions and Contingent Liabilities:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present
obligation as a result of past events and it is probable that there will be an outflow of resources.

When the Company expects some or all of a provision to be reimbursed, the same is recognised as a separate asset,
but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the
statement of profit and loss net of any reimbursement. If the effect of the time value of money is material, provisions
are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When
discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

A Contingent Liability is a possible obligation that arises from past events and 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 enterprise or a present obligation that arises from past events that may, but probably will not, require an
outflow of resources.

Both provisions and contingent liabilities are reviewed at each Balance Sheet date and adjusted to reflect the current
best estimates. Contingent Liabilities are not recognized but are disclosed in the notes.

2.17 Government Grants and Subsidy:

Grants and Subsidies from the government are recognized when there is a reasonable assurance that

(i) the Company will comply with the conditions attached to them, and

(ii) the grant / subsidy will be received.

Government grants of the nature of promoters' contribution are credited to capital reserve and treated as a part of the
shareholders' funds.

2.18 Earnings Per Share:

Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders
by the weighted average number of equity shares outstanding during the year. The weighted average number of
equity shares outstanding during the year are adjusted for events including a bonus issue, bonus element in right
issue to existing shareholders, share split, and reverse share split (consolidation of shares).

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 equity shares outstanding during the year are adjusted for the
effects of all dilutive potential equity shares.

2.19 Cash and Cash Equivalent:

Cash and cash equivalent for the purpose of Cash Flow Statement comprise cash at bank and in hand and short term
highly liquid investments which are subject to insignificant risk of changes in value.

2.20 Cash Flow Statement:

The statement of cash flows have been prepared under indirect method, whereby profit or loss is adjusted for
the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts
or payments and items of income or expense associated with investing or financing cash flows. The cash flows
from operating, investing and financing activities of the Company are segregated. The Company considers all
highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant
risk of changes in value to be cash equivalents."

2.21 Commitments:

Commitments are future liabilities for contractual expenditure. The commitments are classified and disclosed
as follows:

(a) The estimated amount of contracts remaining to be executed on capital accounts and not provided for; and

(b) Other non-cancellable commitments, if any, to the extent they are considered material and relevant in the
opinion of the Management.

2.22 Segment Reporting:

(A) Operating Segments:

i) Synthetic Cordage

ii) Fibre and Industrial Products and Projects
Identification of Segments

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating
decision maker.

The Management monitor the operating result of its business units separately for the purpose of making decision
about resource allocation and performance assessment. For management purposes, operating segments have been
identified on the basis of nature of products and other quantitative criteria specified in the Ind AS 108. The company's
financing and Income Taxes are not allocated to operating segments.

The accounting policies adopted for segment reporting are in conformity with the accounting policies adopted for the
company.

Segments Revenue and Results:

Revenue and expenses have been identified to segments on the basis of their relationship to the operating activities of
the segment. Income /Costs which relate to the Company as a whole and are not allocable to segments on a reasonable
basis have been included under Unallocated income / costs. Interest income and expense are not allocated to
respective segments.

Segments Assets and Liabilities:

Segment Assets / Liabilities include all operating assets / liabilities used by the operating segments. Common assets
and liabilities which cannot be allocated to any of the business segment are shown as unallocable assets / liabilities.
Inter Segment Transfer:

Inter segment revenues are recognised at sale price. The same is based on market price and business risks. Profit or
loss on inter Segment transfer are eliminated at the Company level.

(B) Significant Accounting Judgements, Estimates and Assumptions:

The preparation of Financial Statements is in conformity with the recognition and measurement principles of Ind AS
which requires the management to make judgements for estimates and assumptions that affect the amounts of
assets, liabilities and the disclosure of contingent liabilities on the reporting date and the amounts of revenues and
expenses during the reporting period and the disclosure of contingent liabilities. Differences between actual results
and estimates are recognized in the period in which the results are known / materialize.

2.23 Estimates Assumptions and Judgements:

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date,
that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the
next financial year, are described below. The Company based its assumptions and estimates on parameters available
when the financial statements were prepared. Existing circumstances and assumptions about future developments,
however, may change due to market changes or circumstances arising that are beyond the control of the Company.
Such changes are reflected in the assumptions when they occur.

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

a) Estimation of current tax expense and deferred tax:

The calculation of the Company's tax charge necessarily involves a degree of estimation and judgement in respect
of certain items whose tax treatment cannot be finally determined until resolution has been reached with the
relevant tax authority or, as appropriate, through a formal legal process. The final resolution of some of these items
may give rise to material profits/losses and/or cash flows. Significant judgments are involved in determining the
provision for income taxes, including amount expected to be paid/recovered for uncertain tax positions.

b) Recognition of deferred tax assets / liabilities:

The recognition of deferred tax assets/ liabilities is based upon whether it is more likely than not that sufficient
and suitable taxable profits will be available in the future against which the reversal of temporary differences
can be deducted. To determine the future taxable profits, reference is made to the latest available profit
forecasts.

c) Estimation of Provisions & Contingent Liabilities:

The Company exercises judgement in measuring and recognising provisions and the exposures to contingent
liabilities which is related to pending litigation or other outstanding claims. Judgement is necessary in assessing
the likelihood that a pending claim will succeed, or a liability will arise, and to quantify the possible range of the
financial settlement. Because of the inherent uncertainty in this evaluation process, actual liability may be
different from the originally estimated as provision.

d) Estimated useful life of Property, Plant and Equipment:

Property, Plant and Equipment represent a significant proportion of the asset base of the Company. The charge in
respect of periodic depreciation is derived after determining an estimate of an asset's expected useful life, its
expected usage pattern and the expected residual value at the end of its life. The useful lives, usage pattern and
residual values of Company's assets are determined by management at the time the asset is acquired and
reviewed periodically, including at each financial year end. The lives are based on historical experience
with similar assets as well as anticipation of future events, which may impact their life, such as changes in
technology etc.

e) Estimation of Provision for Inventory:

The Company writes down inventories to net realisable value based on an estimate of the realisability of
inventories. Write downs on inventories are recorded where events or changes in circumstances indicate that
the balances may not be realised. The identification of write-downs requires the use of estimates of net selling
prices of the down-graded inventories. Where the expectation is different from the original estimate, such
difference will impact the carrying value of inventories and write-downs of inventories in the periods in which
such estimate has been changed.

f) Estimation of Defined Benefit Obligation:

The present value of the defined benefit obligations depends on a number of factors that are determined on an
actuarial basis using a number of assumptions. The assumptions used in determining the net cost (income) for
post employment plans include the discount rate. Any changes in these assumptions will impact the carrying
amount of such obligations.

g) The Company determines the appropriate discount rate at the end of each year. This is the interest rate that should
be used to determine the present value of estimated future cash outflows expected to be required to settle the
defined benefit obligations. In determining the appropriate discount rate, the Company considers the interest
rates of government bonds of maturity approximating the terms of the related plan liability.

h) Estimated fair value of Financial Instruments:

The fair value of financial instruments that are not traded in an active market is determined using valuation
techniques. The Management uses its judgement to select a variety of methods and make assumptions that are
mainly based on market conditions existing at the end of each reporting period.

(C) Recent accounting pronouncements

2.24 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.MCA has notified following amendment
which is not yet effective for financial year 2025-26:

Amendment to Ind AS 1 'Presentation of Financial Statements'

The amendment is relating to classification of liabilities as current or non-current on account of covenant
compliance as at reporting date. The amendment is effective for annual periods beginning on or after April 01, 2026
and the Company is not expected to have material impact of the amendment.

Nature and purpose of reserve:

Capital Reserve

The Company recognises profit and loss on purchase, sale, issue or cancellation of the Company own equity instruments
to capital reserve.

Capital Redemption Reserve

As per Companies Act, 2013, capital redemption reserve is created when a company purchases its own shares out of
free reserves or securities premium. A sum equal to the nominal value of the shares so purchased is transferred to
capital redemption reserve. The reserve is utilised in accordance with the provisions of section 69 of the Companies
Act, 2013.

Share Premium

Share premium has been created consequent to issue of shares at premium in excess of the face value. These reserves
can be utilised in accordance with Section 52 of the Companies Act, 2013.

General Reserve

General Reserve represents the reserve created by apportionment of profits generated during the year or transfer from
other reserves either voluntarily or pursuant to statutory requirements. The same is a free reserve and available for
distribution.

Retained Earnings

This reserve represents undistributed accumulated earnings of the Company as on the balance sheet date.

Equity instruments through other comprehensive income

The Company has elected to recognise changes in the fair value of certain investments in equity instruments in other
comprehensive income. These changes are accumulated in 'Equity instruments through other comprehensive income'
within equity.

b. Defined Benefit plan - Gratuity

The Company operates a defined benefit plan viz. Gratuity for its employees. Under the gratuity plan, every
employee who has completed at least specified years of service gets a gratuity on departure @ 15 days (minimum)
of the last drawn salary for each completed year of service. Gratuity liabilities are typically exposed to actuarial
risks such as interest rate risk, salary risk, investment risk, asset liability matching risk, mortality risk and
concentration risk.

The scheme is funded with an insurance company in the form of qualifying insurance policy. The fund has formed
a trust and it is governed by the Board of Trustees. The fund is subject to risks such as asset volatility, changes in
bond yields and asset liability mismatch risk. In managing the plan assets, Board of Trustees reviews and
manages these risks associated with the funded plan. Each year, the Board of Trustees reviews the level of funding
in the gratuity plan. Such a review includes asset-liability matching strategy and investment risk management policy
(which includes contributing to plans that invest in risk-averse markets). The Board of Trustees aim to keep annual
contributions relatively stable at a level such that no plan deficit (based on valuation performed) will arise.

The above sensitivity analysis is based on a change in assumption while holding all other assumptions constant.
In practice, this is unlikely to occur and changes in some of the assumptions may be correlated. When calculating
the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present
value of defined benefit obligation calculated with the Projected Unit Credit Method at the end of the reporting
period) has been applied as when calculating the defined benefit liability recognised in the balance sheet.
The method and types of assumptions used in preparing the sensitivity analysis did not change compared to the
previous periods.

35 Operating segment

The Company's operating businesses are organized and managed separately according to the nature of products and
services provided, with each segment representing a strategic business unit that offers different products and serves
different markets. These business segments are:

1. Synthetic Cordage - comprises of Ropes, Twines and nettings made of Twine

2. Fibre and Industrial Products & Projects. - comprises of fibre, Synthetic fabric, Yarn, Woven and Non-woven textiles,
Secugrids, Coated steel gabions, Machinery and project.

Segment Accounting Policies are the same as those used in the preparation of the Financial Statements. The Company
generally accounts for inter-segment sales and transfers at cost plus appropriate margins.

The segment revenues and segment expenses are directly attributable to the segments, except certain expenses which
are not allocated to any segments by using appropriate basis. All other expenses which are not attributable or allocable
to the segments have been disclosed as unallocable expenses.

The segment assets and liabilities are directly attributable to the segments, except certain assets and liabilities which are
allocated to the segments using appropriate basis. All other assets and liabilities are disclosed as unallocable.

1 The current ratio improved mainly due to higher current investments arising from upcoming maturities and
reduction in working capital borrowings due to repayments, resulting in an increase in current assets and decrease
in current liabilities.

2 The improvement in the debt-equity ratio is primarily driven by a reduction in outstanding borrowings as compared
to the previous year. Additionally, the net worth has strengthened due to accumulation of profits, resulting in a more
favorable capital structure.

3 The improvement in the debt service coverage ratio is primarily attributable to lower interest expenses during the
year, following the discontinuation of interest subvention on rupee packing credit. Additionally, overall working
capital borrowings have reduced compared to the previous financial year, leading to lower debt servicing obligations
and an enhanced coverage ratio.

4 The decline in net working capital turnover ratio is primarily due to increase in current assets, driven by higher current
investments from upcoming maturities and increased inventory levels compared to the previous year.

43.1 CSR expenses for the year ended March 31, 2026 includes an amount of ' 371.19 lakhs ( ' 322.97 lakhs for the
year ended 31st March, 2025) earmarked for ongoing projects which has been transferred to Unspent
CSR Account within 30 days from end of financial years, in terms of Section 135(6) of the Companies Act, 2013.

43.2 Nature of CSR activities include promoting education, including special education and employment enhancing
vocation skills, ensuring environmental sustainability, ecological balance, protection of flora and fauna, animal
welfare, rural development and livelihood enhancement projects.

Valuation technique to determine fair value

The following methods and assumptions were used to estimate the fair values of financial instruments

(i) The management assesses that fair value of cash and cash equivalents, trade receivables, trade payables, bank
overdrafts and other current financial assets and liabilities approximate their carrying amounts largely due to
the short-term maturities of these instruments.

(ii) The fair values of the equity investment which are quoted, are derived from quoted market prices in active markets.
The investments measured at fair value and falling under fair value hierarchy Level 3 are valued on the basis of
valuation reports provided by external valuers with the exception of certain investments, where cost has been
considered as an appropriate estimate of fair value because of a wide range of possible fair value measurements
and cost represents the best estimate of fair values within that range. The carrying value of those investments
are individually immaterial.

The fair value of equity shares classified under Level 3 of the fair value hierarchy is determined using a Discounted
Cash Flow (DCF) model. The key unobservable inputs used in the valuation include a perpetual growth rate of 5%
and a weighted average cost of capital (WACC) of 6.9%. The valuation also includes cash and bank balances
measured at their carrying value, which approximates fair value. Given that the value of cash and bank balances is
significant in comparison to the value derived from the business operations, the overall valuation is less sensitive
to changes in the unobservable inputs used in the DCF model.
d. Financial risk management objectives

The Company is exposed to market risk (including currency risk, interest rate risk and other price risk), credit risk
and liquidity risk. The Company's risk management strategies focus on the un-predictability of these elements and
seek to minimise the potential adverse effects on its financial performance. The Company's senior management
which is supported by a Treasury Management Group ('TMG') manages these risks. All hedging activities are
carried out by specialist teams that have the appropriate skills, experience and supervision.

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 prices comprises of risks relating to interest rate risk and other price risks such as equity
price risk and commodity price risk. Financial instruments affected by market risks mainly include borrowings,
deposits and investments.

Foreign currency risk management

Foreign exchange risk arises on future commercial transactions and on all recognised monetary assets and liabilities,
which are denominated in a currency other than the functional currency of the Company. The Company's
management has set policy wherein exposure is identified, benchmark is set and monitored closely, and accordingly
suitable hedges are undertaken. The Company's foreign currency exposure arises mainly from foreign exchange
imports, exports and other income / expenses in foreign currency, primarily with respect to USD.

The following tables demonstrate the sensitivity in foreign currencies to the INR with all other variable held constant,
as at reporting date:

Interest rate risk management

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 Company's investments in debt instruments including debt mutual funds. The Company does not
have any long term borrowing on variable interest rate therefore not exposed to interest rate risk its debt
obligation.

The Company has invested its surplus funds primarily in debt based mutual funds and fixed maturity plans. The value
of investment in these mutual fund schemes is reflected though Net Asset Value (NAV) declared by the Asset
Management Company on daily basis. The Company has not performed a sensitivity analysis on these mutual funds

based on estimated fluctuations in their NAV as in management's opinion, such analysis would not display a correct
picture.

Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract,
leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade
receivables) and from its financing activities, including deposits with banks and other financial instruments.
Trade Receivable - Customer credit risk is managed by SCM team subject to the Company's established policy,
procedures and control relating to customer credit risk management. Outstanding customer receivables are
regularly monitored and followed up.

Financial instruments and cash deposits - Credit risk from balances with banks is managed by the Company's treasury
department in accordance with the Company's policy. Investments of surplus funds are made only with approved
counterparties and within credit limits assigned to each counterparty. The limits are set to minimise the concentration
of risks and therefore mitigate financial loss through counterparty's potential failure to make payments.
Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at
reasonable price. The Company's objective is to at all times maintain optimum levels of liquidity to meet its cash and
liquidity requirements. The Company closely monitors its liquidity position and deploys a robust cash management
system. It maintains adequate source of financing through the use of bank deposits and cash credit facilities. Processes
and policies related to such risks are overseen by senior management. Management monitors the Company's liquidity
position through rolling forecasts on the basis of expected cash flows. The Company assessed the concentration
of risk with respect to its debt and concluded it to below.

Excessive risk concentration

Concentrations arise when a number of counter parties are engaged in similar business activities, or activities in the
same geographical region, or have economic features that would cause their ability to meet contractual obligations to
be similarly affected by changes in economic, political or other conditions. Concentrations indicate the relative
sensitivity of the Company's performance to developments affecting a particular industry. The Company believes
that there is no such excessive risk concentration.

46 Capital Management

The Company's objective when managing capital is to ensure the going concern operation and to maintain an efficient
capital structure to reduce the cost of capital, support the corporate strategy and meet shareholders expectations.
The policy of the Company is to borrow through banks supported by committed borrowing facility to meet anticipated
funding requirements. The capital structure is governed by policies approved by the Board of Directors.

47 Event occuring after balance sheet date

The Board of Directors at its meeting held on May 8, 2026, approved a proposal to buy-back of up to 16,17,500 equity
shares of the Company for an aggregate amount not exceeding ' 11,000.00 lakhs being 9.46% and 9.35% of the
aggregate of the total paid-up equity share capital and free reserves of the Company based on the audited standalone and
consolidated financial statements respectively as at 31st March, 2025 at the price of ' 680 per equity share. The record
date for determining the buyback entitlement was determined to be 20th May, 2026.

Proposed Dividend - The Board of Directors in its meeting dated 20th May, 2026, has recommended a dividend of
' 1.00 /- per share (10%) of face value ' 10/- each for approval by the Members of the Company at ensuing Annual
General Meeting.

48 The Company do not have any Benami property, where any proceeding has been initiated or pending against the
Company for holding any Benami property.

49 The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory
period.

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

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

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

51 The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party)
with the understanding (whether recorded in writing or otherwise) that the Company shall:

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

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

52 Exceptional item

The Government of India has consolidated 29 existing labour legislations into a united framework comprising four
Labour Codes namely The Code on Wages, 2019; The Industrial Relations Code, 2020; The Code on Social Security, 2020;
and The Occupational Safety, Health and Working Conditions Code, 2020; effective from 21st November, 2025. These
Labour Codes, amongst other things, introduced changes including a uniform definition of wages and enhanced benefits
relating to leave which had resulted in increase in gratuity and leave liability by ' 1,390 lakhs. The same has been
presented under 'Exceptional Item' for the year ended 31st March, 2026. The detailed rules, procedures and state
specific implementation mechanisms under these labour codes are yet to be notified.

53 The Company has used the borrowings from banks for the purpose for which it was obtained.

54 The figures of previous year have been regrouped / rearranged, wherever necessary to conform to current year's
presentation.