2.16 Provisions

Provisions are recognized when there is a present
obligation as a result of a past event, it is probable that an
outflow of resources embodying economic benefits will
be required to settle the obligation and there is a reliable
estimate of the amount of the obligation. Provisions are
measured at the best estimate of the expenditure required
to settle the present obligation at the balance sheet date
and are not discounted to its present value, except where
the effect of the time value of money is material.

2.17 Contingent Liabilities

Contingent liabilities are disclosed when there is a possible
obligation arising from past events, the existence of which
will be confirmed only by the 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.

2.18 Offsetting 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 recognised amounts
and there is an intention to settle on a net basis or realise
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 event of default, insolvency or bankruptcy of the
Company or the counterparty.

2.19 Segment reporting

Operating segments are reported in a manner consistent
with the internal reporting provided to the chief operating
decision maker. The Board of Directors of the Company
has been identified as being the chief operating decision
maker. Refer note 37 for segment information presented.

2.20 Leases

As a lessee Leases are recognised as right of use assets
and a correspondence liability at the date at which the
leased asset is available for use by the Company. Contract
may contain both lease and non-lease components. The
Company allocates the consideration in the contract to the
lease and non-lease components based on their relative
standalone prices. Assets and liabilities arising from a
lease are initially measured on a present value basis. Lease
liabilities include the net present value of the following
lease payment: -

a) Fixed payments (including in substance fixed
payments) less any lease incentive receivable.

b) Variable lease payment that are based on an index or a
rate, initially measured using the index or a rate at the
commencement date.

c) Amount expected to be paid by the Company as under
residual value guarantees.

d) Exercise price of a purchase option if the Company is
reasonably certain to exercise that option.

e) Payment of penalties for terminating the lease, if
the lease term reflects the Company exercising that
option. 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, which
is generally the case for leases in the Company, the
lessee's incremental borrowing rate is used, being
the rate that the individual lessee would have to pay
to borrow the funds necessary to obtain an asset
of similar value to the right-of-use asset in a similar
economic environment with similar terms, security and
conditions.

To determine the incremental borrowing rate, the Company:

a) Where possible, use recent third party financing received
by the individual lessee as a starting point, adjusted to
reflect changes in the financing conditions since third
party-financing was received.

b) Use a built up approach that starts with risk free interest
rate adjusted for credit risk of leases held by Gloster
Limited, which does not have recent third party financing.
If a readily observable amortising loan rate is available to
the individual lessee (through recent financing or market
data) which has a similar payment profile to the lease, then
the company uses that rate as a starting point to determine
the incremental borrowing rate. Lease payments are
allocated between principal and finance cost. The finance
cost is charged to 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. Right-of use assets are measured at cost comprising
the following: -

i) the amount of the initial measurement of lease liability

ii) any lease payment made at or before the
commencement date less any lease incentive received

iii) any initial direct cost and

iv) restoration costs.

Right of use assets are generally depreciated over the
shorter of the asset's useful life and the lease term on a
straight line basis. Payment associated with short-term
leases of equipment and all the 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.

2.21 Trade Receivables

Trade receivables are amounts due from customers for
goods sold or services performed in the ordinary course
of business and reflects Company's unconditional right
to consideration (that is, payment is due only on the
passage of time). Trade receivables are recognised initially
at the transaction price as they do not contain Significant
financing components. The Company holds the trade
receivables with the objective of collecting the contractual
cash flows and therefore measures them subsequently at
amortised cost using the effective interest method, less
loss allowance.

2.22 Cash & Cash Equivalent

Cash and cash equivalents in the balance sheet comprise
cash at banks and in hand, cheques in hand and short term
deposits with an original maturity of three months or less,
which are subject to an insignificant risk of change in value.

2.23 Foreign Currency Transaction

(i) Initial Recognition

On initial recognition, all foreign currency transactions are
recorded at exchange rates prevailing on the date of the
transaction.

(ii) Subsequent Recognition

At the reporting date, foreign currency non-monetary
items carried in terms of historical cost are reported using
the exchange rate at the date of transactions.

All monetary assets and liabilities in foreign currency are
restated at the end of accounting period at the closing
exchange rate.

Gains/losses arising out of fluctuations in the exchange
rates are recognised in the Statement of Profit and Loss in
the period in which they arise.

2.24 Earning per share

Basic earnings per share are calculated by dividing the
net profit or loss for the period attributable to equity
shareholders by the weighted average number of equity
shares outstanding during the period. The weighted
average number of equity shares outstanding during
the period and for all periods presented is adjusted for
events, such as bonus shares, other than the conversion
of potential equity shares that have changed the number
of equity shares outstanding, without a corresponding
change in resources.

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

2.25 Dividend to Equity Shareholder

The Company recognises a liability to make cash
distributions to equity holders of the Company when the
distribution is authorised and the distribution is no longer
at the discretion of the Company. 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.

2.26 Government Grants

Government grants are recognized at their fair values
when there is reasonable assurance that the grants will
be received and the Company will comply with all the
attached conditions. When the grant relates to an expense
item, it is recognized as income on a systematic basis over
the periods that the related costs, for which it is intended
to compensate, are expensed. Grants related to purchase
of property, plant and equipment are included in non¬
current liabilities as deferred income and are credited to
statement of profit or loss on a straight line basis over the

expected useful life of the related asset and presented
within other operating revenue or netted off against the
related expenses.

2.27 Rounding of Amounts

All amounts disclosed in the financial statements and
notes have been rounded off to the nearest Lakhs (with
two place of decimal) as per the requirement of schedule
III, unless otherwise stated.

2A 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.

(i) Estimation of defined benefit obligation- Refer note 29
of the financial statements.

(ii) Estimated fair value of unlisted securities -Refer notes 5
(b), 9 (a), and 34 of the financial statements.

(iii) Useful life of Property, Plant and Equipment, Goodwill
and Other Intangible assets - Refer note 2.3 & 2.4 above
and notes 3, 4(c) & 4(d) of the financial statements.

(iv) Net realizable value of inventory.

(v) Recoverable amount of investment in Subsidiaries (for
investment held at cost)

Estimates and judgements are continually evaluated.
They are based on historical experience and other factors,
including expectations of future events that may have a
financial impact on the Company and that are believed to
be reasonable under the circumstances.

(e) Rights, preferences and restrictions attached to equity shares

The Company has only 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 Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors
is subject to the approval of shareholders in the ensuing Annual General Meeting, except in case of interim dividend.
In the event of liquidation of the Company, the holders of equity shares are eligible to receive the remaining assets of the Company
after distribution of all the preferential amounts, in proportion to their shareholding.

(f) Details of bonus shares issued

The Company has issued 16,00,000 number of equity shares allotted as fully paid up by way of bonus shares of ' 10 each on 07 March, 2016.
The Company has issued 54,71,630 number of equity shares allotted as fully paid up by way of bonus shares of ' 10 each on 19 December,
2022.

(g) No ordinary shares have been reserved for issue under options and contracts/commitments for the sale of shares/disinvestment as at the
Balance Sheet date.

(h) No securities convertible into equity/preference shares have been issued by the Company during the year.

(i) No calls are unpaid by any director or officer of the Company during the year.

(i) Securities premium

Securities premium represents premium on issue of shares. The reserve is utilised in accordance with the provisions of the Companies
Act, 2013.

(ii) General reserve

General reserve is created and utilised in compliance with provisions of the Companies Act, 2013.

(iii) Retained earnings

Retained earnings are the profits that the Company has earned till date, less any transfer to general reserve, dividends or other
distributions to shareholders.

(iv) Equity instruments through OCI

Remeasurements of the defined benefit plans comprises actuarial gains and losses and remeasurements of return on plan asset
(excluding interest income) which are recognised in other comprehensive income and then immediately transferred to retained
earnings.

(v) Equity instruments through OCI

The Company has elected to recognise changes in the fair value of all investments in equity securities in other comprehensive income.
These changes are accumulated within the FVOCI equity investments reserve within equity. The Company transfers amounts from this
reserve to retained earnings when the relevant equity securities are derecognised.

Notes:

(a) Secured by first charge on pari passu basis by way of hypothecation of the Company's entire current assets and movables fixed assets.
Secured by extension of first charge on pari passu basis by way of mortgage of the immovable properties of the company, situated at
P.S. Bauria, Dist- Howrah.

(b) Loans from banks comprises of cash credit facilities, working capital demand loans, bill discounting, buyer's credit etc. and unsecured
loans which are payable on demand. The interest rate of such loan ranges from 0.25% to 1.10% spread over MCLR per annum, 1.75%
spread over applicable repo rate and 2.08% spread over 3 months T-Bill.

(c) Loan from Life Insurance Corporation of India (LICI) was secured against keyman insurance policy from LICI with interest rate of 9.09%

p.a.

(d) Loans from banks has been utilized for the purpose for which it was taken.

(e) Unsecured Loan from subsidiaries are repayable on demand with interest rate of 8.05% p.a.

(f) Interest rate on Buyer's Credit ranges from 0.58% to 0.60% spread over 6 Month SOFR.

The Company makes Pension Fund and Superannuation Fund contributions to defined contribution plans for qualifying employees.
Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The
contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

(ii) Defined benefit plan

(a) Gratuity:

The employees' gratuity fund scheme is managed by a Trust and is a defined benefit plan. The funds of the trust are managed by
approved insurance companies. Every employee is entitled to a benefit equivalent to fifteen day's salary last drawn for each completed
year of service in line with Payment of Gratuity Act,1972. The same is payable at the time of separation from the Company or retirement,
whichever is earlier. Gratuity benefit vests after five year of continuous service. The present value of obligation is determined based on
actuarial valuation using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of
employee benefit entitlement and measures each unit separately to build up the final obligation.

The above sensitivity analysis is based on a change in an 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 the defined benefit obligation calculated with the projected unit credit
method at the end of the reporting period) has been applied while calculating the defined benefit liability recognised in the balance sheet.
The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

(B) Other long term employee benefit plan

The Company provides benefits in the nature of compensated absences which can be accumulated. The compensated absences are
other long term employee benefits plan. Accumulated compensated absences which are expected to be availed or encashed within the
12 months from the end of the year are treated as short term employee benefits and the balance expected to be availed or encashed
beyond 12 months from the year end are treated as long term liability. Expenses recognised in the Statement of Profit and loss towards
compensated absences includes re-measurement gains and losses.

The investments in equity instruments are not held for trading. Instead, they are held for medium or long term investment. Upon the
application of Ind AS 109, the Company has chosen to designate these investments in equity instruments at FVOCI as the management
believe that this provides a more meaningful presentation for medium or long-term investments, than reflecting changes in fair value
immediately in profit or loss.

(i) Fair value hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a)
recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial
statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its
financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath
the table.

Level 1 [Quoted prices in an active market]

Level 1 hierarchy includes financial instruments measured using
quoted prices. This includes listed equity instruments and debentures
that have quoted price available. The fair value of all equity instruments
which are traded in the stock exchanges is valued using the closing
price as at the reporting period.

Level 2 [Fair values determined using valuation techniques with
observable inputs]

The fair value of financial instruments that are not traded in an
active market (for example, over-the-counter derivatives), Portfolio
Management Scheme (PMS) and Alternate Investment Fund (AIF), is
determined using valuation techniques which maximise the use of
observable market data and rely as little as possible on entity-specific
estimates. If all significant inputs required to fair value an instrument
are observable, the instrument is included in level 2.

Level 3 [Fair values determined using valuation techniques with
significant unobservable inputs]

If one or more of the significant inputs is not based on observable
market data, the instrument is included in level 3. This is generally the
case for unlisted equity securities and certain Alternative Investment
Funds (Equity & Debt ), wherein undelying investments are mainly real
estate / investment in equity shares of unlisted entities.

There are no transfers between Level 1, Level 2 and Level 3 during the
year.

(ii) Valuation techniques used to determine fair value

Specific valuation techniques used to value financial instruments

include:

• the use of quoted market prices for quoted equity shares and
debentures.

• the fair value of forward foreign exchange contracts is determined
using forward exchange rates at the balance sheet date.

• Investments in PMS and AIF carried at fair value, are generally based on
available NAVs. The fair value ofthe unquoted equity shares is determined
using valuation technique that maximises the use of relevant observable
inputs and minimises the use of unobservable inputs.

• The carrying amounts of trade receivables, loans, cash and
cash equivalents, other bank balances, other financial assets,
security deposits, trade payables and other financial liabilities are
approximate to their fair values.

• Management uses its best judgement in estimating the fair value
of its financial instruments. However, there are inherent limitations
in any estimation technique. Therefore, for substantially all financial
instruments, the fair value estimates presented above are not
necessarily indicative of the amounts that the Company could have
realised or paid in sale transactions as of respective dates. As such,
fair value of financial instruments subsequent to the reporting dates
may be different from the amounts reported at each reporting date.

• For financial assets and liabilities that are measured at fair value, the
carrying amounts are equal to their fair values.

c) Valuation processes

The finance department of the Company includes a team
that performs the valuations of financial assets and liabilities
required for financial reporting purposes, including level 3 fair
values. This team reports directly to the Chief Financial Officer
(CFO). The company also involves external valuation expert,
who presents a report that explains the reasons for the fair
value movements. Discussions of valuation processes and
results are held between the CFO, external valuation expert
and the valuation team at least once every year, in line with the
company's reporting periods.

The main level 3 inputs for unlisted equity securities and
certain Alternative Investment Funds used by the company are
derived and evaluated as follows:

1) Cost or assets approach is used to derive the adjusted Net
Asset Value which involves determining the value per share
based on the respective assets and liabilities.

2) Determination of NAV based on the underlying investments of
Alternative Investment Fund.

iv) Fair value of financial assets and liabilities measured at
amortised cost; the carrying amounts of financial assets and
financial liabilities recognised in the financial statements
approximates their fair values.

v) Derecognition of Investment in equity instrument
designated at FVOCI :

The Company has derecognised the Investment in equity
instrument designated at FVOCI and the gain/(loss) on such
disposal (net of tax) amounting to Rs 200.92 Lakhs ( 31 March
2025 : Rs 1,415.00 Lakhs ) has been transferred to Retained
Earnings.

The company has disposed certain investments designated
as OCI since management does not see any significant
appreciation in investments in medium / long-term.

(A) 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) including
deposits with banks and financial institutions, foreign exchange
transactions and other financial instruments carried at amortised
cost and fair value through Profit & Loss.

i) Trade receivables

Customer credit risk is managed by the Company through
established policy and procedures and control relating to
customer credit risk management. Trade receivables are non¬
interest bearing and are generally carrying 30 to 90 days credit
terms. The Company has a detailed review mechanism of overdue
customer receivables at various levels within organisation to
ensure proper attention and focus for realisation. Trade receivables
are consisting of a large number of customers. Where credit
risk is high, domestic trade receivables are backed by security
deposits. Export receivables are backed by letters of credit.
Financial assets are considered to be of good quality and there is
no significant increase in credit risk.

Provision for expected credit loss

The requirement for impairment is analysed at each reporting date.
For impairment, individual debtors are identified and assessed
specifically. The Company evaluates the concentration of risk with
respect to trade receivables as low, as its customers are located
in several jurisdictions and industries and operate in largely
independent markets. There has been no material default history
in the past and accordingly no provision is considered necessary.
The maximum exposure to the credit risk at the reporting date is
primarily from trade receivables.

ii) Financial instruments and cash deposits

Credit risk from balances with banks and investments is managed
by the Company's finance department in accordance with the
Company's policy. Investments of surplus fund in portfolio

management services, alternative investment funds, direct
equity, debentures and in private companies are made only with
approved counterparties and within credit limits assigned to
each counterparty, if any. Counterparty credit limits are reviewed
by the Company's Board of Directors on an annual basis, and
may be updated throughout the year subject to approval of the
Company's Board of Directors. The limits are set to minimise the
concentration of risks and therefore mitigate financial loss through
counterparty's potential failure to make payments.

Balances with banks and deposits are placed only with highly
rated banks.

The Company's maximum exposure to credit risk for the
components of the balance sheet is the carrying amounts as
disclosed.

(B) Liquidity risk

Liquidity risk is the risk that an entity will encounter difficulty in
meeting obligations associated with financial liabilities that are
settled by delivering cash or another financial asset.

Prudent liquidity risk management implies maintaining sufficient
cash and marketable securities and the availability of funding
through an adequate amount of committed credit facilities
to meet obligations when due. Management monitors rolling
forecasts of the Company's liquidity position (comprising the
undrawn borrowing facilities) and cash and cash equivalents on
the basis of expected cash flows.

(i) Maturities of financial liabilities

The tables below analyse the Company's financial liabilities
into relevant maturity group based on their contractual
maturities.

The amounts disclosed in the table are the contractual
undiscounted cash flows. Balances due within 12 months
equal their carrying balances as the impact of discounting is
not significant.

(C) Market risk

(i) Foreign currency risk

The Company undertakes transactions (e.g. sale of goods and
purchases of raw materials or capital goods) denominated
in foreign currencies and thus is exposed to exchange rate
fluctuations. The Company evaluates its exchange rate
exposure arising from foreign currency transactions and

manages the same based upon approved risk management
policies which inter-alia includes entering into forward foreign
exchange contracts.

Foreign currency risk exposure

The Company's exposure to foreign currency risk at the end of
the reporting period expressed in Rs Lakhs (foreign currency
amount multiplied by closing rate), are as follows:

In addition to above, for ward contracts amounting to USD 66,12,378, EURO 9,40,349, GBP 2,086 and JPY 2,98,70,500 respectively has been
desingnated towards firm commitments outstanding as on 31st March, 2026.

Sensitivity has not been disclosed as all exposures are largely hedged.

(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. The Company's exposure to the risk of changes in market interest rates relates primarily to the Company's debt obligations
with floating interest rates.

The Company's fixed rate borrowings are carried at amortised cost. They are therefore not subject to interest rate risk, since neither the
carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

(iii) Security price risk

The Company's expense to equity securities price risk arises from instruments held by the Company and classified in the Balance Sheet
either as fair value through Other Comprehensive Income (OCI) or at fair value through Profit or Loss (Refer Note 34).

To manage its price risk arising from investments in equity securities the Company diversifies its portfolio.

(a) Interest rate risk exposure on financial liabilities

The exposure of the Company's financial liabilities to interest rate risk is as follows:

Note: 36 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.

The capital structure of the Company is based on management's
judgement of the appropriate balance of key elements in order to
meet its strategic and day-to-day needs. The Company manages
its capital structure and makes adjustments in light of changes
in economic conditions and the requirements of the financial
covenants. The funding requirement is met through a mixture of
equity, long term borrowings and short term borrowings.

Notes:

(a) Pursuant to approval of Board of Directors at its meeting held
on February 07, 2025 for conversion of loans given to Fort
Gloster Industries Limited (FGIL), wholly owned subsidiary,
amounting to Rs. 9,250 Lakhs, FGIL has allotted 9,25,00,000
number of Equity Shares to the Company at a face value of Rs.
10/- each on March 31,2025. [refer note 5 (a)]

(b) Pursuant to approval of Board of Directors at its meeting held
on February 07, 2025 for conversion of loans given to Gloster
Nuvo Limited (GNL), wholly owned subsidiary, amounting to

Rs. 8,880 Lakhs, GNL has allotted 8,88,00,000 number of Equity
Shares to the Company at a face value of Rs. 10/- each on March
31,2025. [refer note 5 (a)]

(c) The security deposit balance represents the amount actually
paid by the Company without impact of fair valuation. (fair
value of security deposit is Rs. 6.00 Lakhs (31 March 2025 - Rs.
5.62 Lakhs).

(d) The Company has entered into a lease arrangement with its
subsidiary Network Industries Limited pertaining to which
finance cost amounting to Rs. 16.93 Lakhs ( 31 March 2025 -

Rs. 16.81 Lakhs) & depreciation amounting to Rs. 9.10 Lakhs
(31 March 2025 - Rs. 9.10 Lakhs) has been recognised in the
statement of profit and Loss. The closing balance of lease
liabilities as on 31 March, 2026 is Rs. 239.51 Lakhs ( 31 March,
2025 - Rs. 240.75 Lakhs) (Non current) and Rs. 17.25 Lakhs (31
March, 2025 - Rs. 14.08 Lakhs) (Current) [refer note 43]

(e) For contribution to Gloster Jute Employees' Gratuity Fund
please refer note no 29 (A) (ii) (a).

(f ) For corporate guarantees given during the year and
outstanding as at 31 March 2026 - refer note 40.

(g) Maximum amount outstanding at any time during the year
are Rs.3,325.00 Lakhs (31 March 2025 - Rs. 9,080.00 Lakhs ) for
Gloster Nuvo Limited and Rs. 8,150.00 Lakhs ( 31 March 2025 -
Rs. 18,950 Lakhs ) for Fort Gloster Industries Limited.

(h) Above loans, given for general business purpose, are repayable
on demand except Rs 1,500 Lakhs given to subsidiary Gloster
Nuvo Limited classified as non-current and interest rate for said
loan ranges from 10% to 11.50%.

Terms and conditions of the transactions
All outstanding balances are unsecured.

Disclosure pursuant to section 186(4) of the Companies Act,
2013, regarding investments/loans made in subsidiaries/group
companies and other investments are mentioned in note 5(b),
note 5(c) and note 9(a). For Guarantee & Loans - refer point (f),
(g) & (h) above.

All transactions are made in ordinary course of business and
are done on arms length basis.

Notes:

(i) The future cash outflow, if any, cannot be ascertained, pending resolution of the proceedings.

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

(iii) Corporate guarantee is given with respect to loan taken by Gloster Nuvo Limited [Loan outstanding 31 March 2026 - Rs. 25,705.76
Lakhs ( 31 March 2025 - Rs. 18,858.98 Lakhs)] and Fort Gloster Industries Limited [Loan outstanding 31 March 2026 - Rs. 38,190.90 Lakhs
( 31 March 2025 - Rs. 22,084.86 Lakhs)].

Note : 43 Lease

(a) The Company as a Lessee

The Company has entered into five lease agreements /

arrangement as below:

(i) Lease agreement for a term of thirty years commencing
from 09 March 2021 for land situated at Bauria, West Bengal
with it's wholly owned subsidiary. The lease payments are on
fixed rental basis along with an incremental clause every 5
years with an option to renew at the end of lease period.

(ii) Lease agreement for a term of five years commencing from
01 April 2023 for Office Building situated at 21 Strand Road,
Kolkata - 700 001 with M/s. Oriental Company Limited.
The lease payments are on fixed rental basis without any
incremental clause with an option to renew at the end of
lease period.

(iii) Lease agreement for a term of thirty years commencing from
01 March 2024 for land measuring about 21,807.388 Sq.mtr
situated at Budge Budge, West Bengal with Syama Prasad
Mookerjee Port. The lease payments are on fixed rental
basis along with an escalation of 5% every year without any
option of renewal.

(iv) Lease agreement for a term of thirty years commencing from
01 April 2024 for land measuring about 6,549.372 Sq.mtr
situated at Budge Budge, West Bengal with Syama Prasad
Mookerjee Port. The lease payments are on fixed rental
basis along with an escalation of 5% every year without any
option of renewal.

(v) Lease arrangement for a term of thirty years commencing
from 01 September 2025, for which formal lease agreement
is yet to be executed, for land measuring about 4,180.53
Sq.mtr situated at Taratala Road, West Bengal with Syama
Prasad Mookerjee Port. The lease payments are on fixed
rental basis along with an escalation of 5% every year
without any option of renewal.

(vi) The weighted average incremental borrowing rates ranges
from 6.50% to 9.00% have been applied to lease liabilities
recognised in the Balance Sheet.

(vii) The Company has certain lease premises with lease term
of 12 months or less. The Company applies short-term
recognition exemption for these leases.

During the year, the Company has capitalised interest expenses on lease liabilities for Rs. 250.23 Lakhs and Depreciation on ROU assets
for Rs. 97.38 Lakhs ( 31 March 2025 - Rs. Nil ).

(f) The Company had a total cash outflow of Rs. 418.25 Lakhs for leases for the year ended 31 March 2026 ( 31 March 2025 - Rs 87 Lakhs )

(g) Extension and Termination Option- Extension and termination options are included in the Company's lease contracts. These are used
to maximise operational flexibility in terms of margin, the asset used in the Company's operations and accordingly extension and
termination options are considered for determining the lease term.

Note: The information has been given in respect of such vendors to the extent they could be identified as "Micro, Small & Medium"
enterprises on the basis of information available with the Company.

Note: 45

On November 21, 2025, the Government of India notified the
four Labour Codes - 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
- consolidating 29 existing labour laws. The Ministry of Labour &
Employment published draft Central Rules and FAQs to enable
assessment of the financial impact due to changes in regulations.
The Company has assessed impact of these changes on the basis
of the best information available, consistent with the guidance
provided by the Institute of Chartered Accountants of India and
noted that there is no material impact of the said codes. However,
the Company continues to monitor the finalisation of Central
/ State Rules and clarifications from the Government on other
aspects of the Labour Code and shall review its estimates and
assumptions on ongoing basis.

Note: 46

The Scheme of amalgamation of Gloster Lifestyle Limited and
Gloster Specialities Limited ('Transferor Companies') both
wholly owned subsidiaries of the Company with Gloster Limited
('Transferee Company') having appointed date as 1st April, 2025,
has been filed with Hon'ble National Company Law Tribunal,
Kolkata Bench ("NCLT") on 14th February, 2026. Pending
approval of the Scheme by the Hon'ble National Company Law
Tribunal, Kolkata, no effect of the Scheme has been given in these
standalone financial statements.

Note: 47

During the year ended March 31,2026, the Company considered
indicators of impairment for one of its subsidiaries, Fort Gloster
Industries Limited. The Company, through an independent
valuation expert, has carried out Value in Use assessment based
on the discounted future cash flow method. The outcome of the
assessment as on March 31, 2026 did not result in recognition of
any impairment.

Note: 49

Additional Regulatory Information required by Schedule III

(i) No proceedings have been initiated on or are pending against
the company for holding benami property under the Prohibition
of Benami Property Transactions Act, 1988 (as amended in 2016)
[formerly the Benami Transactions (Prohibition) Act, 1988 (45 of
1988)] and Rules made there under.

(ii) The Company has been sanctioned working capital limit in
excess of ' 5 crores, in aggregate, from banks on the basis of
security of current assets. The Company has filed quarterly
returns or statements with such banks, which are in agreement
with the unaudited books of accounts. Further, the returns for
the quarter ended March 31,2026 would be appropriately filed
by the company within the extended due date.

(iii) The Company has not been declared wilful defaulter by any
bank or financial institution or government or any government
authority or other lender in accordance with the guidelines on
wilful defaulters issued by the Reserve Bank of India.

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

(v) The Company has complied with the number of layers as
prescribed in section 2(89) of the Companies Act read with
Companies (Restriction on number of layers) Rules, 2017 .

(vi) Refer note 46 for detailed disclosure on scheme of arrangement
which has an accounting impact on current or previous financial
year.

(vii) I. The Company has not advanced or loaned or invested funds

to any other persons or entities, 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.

II. The Company has not received any fund from any persons or
entities, 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
entity 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

(viii) 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.

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

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

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