2.20 Provisions:

Provisions (legal and constructive) are
recognised when the Company has a present
obligation (legal or constructive) as a result of
a past event, it is probable that the Company
will be required to settle the obligation, and a
reliable estimate can be made of the amount of
the obligation.

The amount recognised as a provision is the
best estimate of the consideration required to
settle the present obligation at the end of the
reporting period, taking into account the risks
and uncertainties surrounding the obligation.
When a provision is measured using the cash
flows estimated to settle the present obligation,
its carrying amount is the present value of
those cash flows (when the effect of the time
value of money is material).

When some or all of the economic benefits
required to settle a provision are expected to
be recovered from a third party, a receivable is
recognised as an asset if it is virtually certain
that reimbursement will be received and the
amount of the receivable can be measured
reliably.

Onerous contracts

If the Company has a contract that is onerous,
the present obligation under the contract is
recognised and measured as a provision.
However, before a separate provision for an
onerous contract is established, the Company
recognises any impairment loss that has
occurred on assets dedicated to that contract

An onerous contract is a contract under which
the unavoidable costs (i.e., the costs that the
Company cannot avoid because it has the
contract) of meeting the obligations under the
contract exceed the economic benefits expected
to be received under it. The unavoidable costs
under a contract reflect the least net cost of
exiting from the contract, which is the lower of
the cost of fulfilling it and any compensation
or penalties arising from failure to fulfil it.

2.21 Contingent liabilities

A contingent liability is a possible obligation
that arises from past events whose existence
will be confirmed by the occurrence or non¬
occurrence of one or more uncertain future
events beyond the control of the Company
or a present obligation that is not recognized
because it is not probable that an outflow

of resources will be required to settle the
obligation. A contingent liability also arises in
extremely rare cases where there is a liability
that cannot be recognized because it cannot
be measured reliably. The Company does not
recognize a contingent liability but discloses
its existence in the financial statements.

2.22 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
account 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.

(B) Significant Accounting Judgements, Estimates
and Assumptions:

The preparation of the Company’s financial
statements requires managementto makejudgements,
estimates and assumptions that affect the reported
amounts of revenues, expenses, assets and liabilities,
and the Company disclosures, and the disclosure of
contingent liabilities. Management believes that the
estimates used in the preparation of the financial
statements are prudent and reasonable. Uncertainty
about these assumptions and estimates could result
in outcomes that require a material adjustment to the
carrying amount of assets or liabilities affected in
future periods. Difference between actual results and
estimates are recognised in the periods in which the
results are known / materialised.

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 has 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:

(i) 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.

(ii) Inventories:

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 carrying value 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.

the managment based on the specific facts and
circumstances.

(v) 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.

(vi) Provisions & Contingent Liabilities:

Provisions and liabilities are recognized in the
period when it becomes probable that there
will be a future outflow of funds resulting from
past operations or events that can reasonably
be estimated. The timing of recognition
requires application of judgement to existing
facts and circumstances, which may be subject
to change. The amounts are determined by
discounting the expected future cash flows
at a pre-tax rate that reflects current market
assessments of the time value of money and
the risks specific to the liability.

In the normal course of business, contingent
liabilities may arise from litigation and
other claims against the Company. Potential
liabilities that are possible but not probable of
crystallising or are very difficult to quantify
reliably are treated as contingent liabilities.
Such liabilities are disclosed in the notes but
are not recognized.

(vii) Financial Instruments:

When the fair values of financial assets and
financial liabilities recorded in the balance
sheet cannot be measured based on quoted
prices in active markets, their fair value is
measured using valuation techniques including
the DCF model. The inputs to these models
are taken from observable markets where
possible, but where this is not feasible, a
degree of judgement is required in establishing
fair values. Judgements include considerations
of inputs such as liquidity risk, credit risk and
volatility. Changes in assumptions about these
factors could affect the reported fair value of
financial instruments. See Note 32 (VII) &
(VIII) for further disclosures.

(viii) Allowance for uncollected accounts
receivable and advances

Trade receivables do not carry any interest
and are stated at their normal value as reduced
by appropriate allowances for estimated
irrecoverable amounts. Individual trade
receivables are written off when management
seems them not collectible. Impairment is
made on the expected credit losses, which are
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 risk of default
and expected loss rates. Judgement in making
these assumption and selecting the inputs to
the impairment calculation are based on past
history, existing market condition as well as
forward looking estimates at the end of each
reporting period.

(ix) Impairment reviews

An impairment exists when the carrying value
of an asset or cash generating unit (‘CGU’)
exceeds its recoverable amount. Recoverable
amount is the higher of its fair value less costs
to sell and its value in use. The value in use
calculation is based on a discounted cash
flow model. In calculating the value in use,
certain assumptions are required to be made in
respect of highly uncertain matters, including
management’s expectations of growth in
EBITDA, long term growth rates; and the
selection of discount rates to reflect the risks
involved.

(C) Application of new Revised Ind AS

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.

In August 2025, MCA notified the following

amendments to:

• Ind AS 1, Presentation of Financial Statements
(Classification of Liabilities as Current or
Non-current and Non-current Liabilities
with Covenants) :The amendment relates
to classification of liabilities as current or
non-current and non-current liabilities with
covenants. In the context of classifying a
liability as current, it removes the requirement
of existence of a right to defer settlement for
at least 12 months after the reporting date
and instead requires that the said right should
exist on the reporting date and have substance.
The amendment also introduces guidance on
classification of liabilities with covenants. The
Company has no impact of these amendments
in its classification criteria of current and non¬
current liabilities.

• Ind AS 7, Statement of Cash Flows and Ind
AS 107, Financial Instruments (Supplier
Finance Arrangements) : The amendment in
Ind AS 7 requires to inform users of financial
statements of the existence of supplier
finance arrangements and explain the nature
of the arrangements, the carrying amount
of liabilities and the range of payment due
dates. Ind AS 107 has been amended to add
supplier finance arrangements as a factor that
may cause concentration of liquidity risk. The
Company has reviewed the amendment and
based on its evaluation has determined that
it does not have any significant impact in its
financial statements.

• Ind AS 12 Income Tax (International Tax
Reform Pillar Two Model Rules) : The
amendments provide a temporary mandatory
relief from deferred tax accounting for top-
up tax and disclose that they have applied
the relief. The Company has reviewed the
amendment and based on its evaluation has
determined that it does not have any significant
impact in its financial statements.

• Ind AS 21 The Effects of Changes in Foreign
Exchange Rates (Lack of Exchangeability)
: The amended Ind AS 21 have added
requirements to help entities to determine
whether a currency is exchangeable into
another currency, and the spot exchange rate to
use where it is not. Prior to these amendments,
Ind AS 21 set out the exchange rate to use when
exchangeability is temporarily lacking, but not
what to do when lack of exchangeability is not
temporary.

The Company has reviewed the new
pronouncements and based on its evaluation
it has determined that it does not have any
significant impact on its financial statements.

As at the date of approval of the accounts
by the Board of Directors, there are no
amendments to standards that are applicable
for next period(s).

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 from firms or private companies respectively in which any director is a partner or a director or a member
except as stated above. Trade receivables are non interest bearing. The Company considers the probability of default upon initial
recognition of assets and whether there has been a significant increase in credit risks on an ongoing basis throughout each reporting
period. The average credit period allowed to the customers is in the range of 0 - 90 (P.Y. 0 - 60) days.

Note 12.1:

Short term fixed deposits are varying between three months and twelve months, depending on the immediate cash requirements and
earn interest at the respective short term deposit rate. Interest rate is between 6.45% - 7.30%.

Note 12.2:

For the purposes of the statement of cash flows, cash and cash equivalents include cash on hand and in banks, net of outstanding
bank overdrafts. Cash and cash equivalents at the end of the reporting period as shown in the statement of cash flows can be
reconciled to the related items in the balance sheet as above.

Note 12.3:

The Company has obtained an overdraft facility of Rs. 245.93 Lakhs which will be secured against the bank deposits. The Company
has not utilised the said credit facilities any time during the year and prior year and hence, none of the bank deposits have been lien
marked by any bank (except as stated in Note 12) for the said credit facility.

Rights and Terms attached to Equity Shares :

The Company has issued only one class of shares referred to as Equity Shares having a par value of Rs. 10/-. Each holder of Equity
Shares is entitled to one vote per share. The dividend proposed by the Board is subject to the approval of shareholders except in
case of interim dividend.

In the event of liquidation of the Company, the holders of Equity Shares will be entitled to receive remaining Assets of the Company,
after distribution of all preferential amounts. The distribution will be in proportion to the number of Equity Shares held by the
shareholders.

The Company has not issued any equity shares as bonus or for consideration other than cash and has not bought back any shares
during the period of five years immediately preceding March 31, 2026.

Nature and Purpose of the Reserves :Note 16.1 :

Persuant to the amalgamation in the earlier years, Capital Reserve, Capital Redemption Reserve and Securities premium have been
incorporated in the Company. This reserves will be utilised in accordance with the provisions of the Companies Act, 2013.

Note 16.2 :

General Reserves is created pursuant to the scheme of amalgamation and transfer profits from Retained earnings for appropriation
purpose. This reserve will be utilised in accordance with the provisions of the Companies Act, 2013.

Note 16.3 :

The Company has elected to recognise changes in the fair value of certain investments in equity securities and changes in actuarial
gains and losses on re-measurement of defined benefit plan.

B. Details of the carrying amount of Right to use assets and movement during the year is disclosed under Note 3(B).

C. Maturity analysis of the lease liability are disclosed in Note 32(VI)(C).

D. The effective interest rate for lease liabilities is 7.30 % with maturity between 3 to 5 years.

II. Employee Benefits :

A. Defined Contribution Plans:

The Company offers its employees defined contribution plans in the form of Provident Fund (PF) and Superannuation
with the government and certain state plans such as Employees’ State Insurance (ESI). PF cover substantially all regular
employees and the Superannuation plan covers mainly executive directors. Contributions are made to the Government’s
administered funds. While both the employees and the Company pay predetermined contributions into the Provident Fund
and the ESI Scheme, and contributions into the Superannuation plan is made only by the Company. The contributions are
normally based on a certain proportion of the employee’s salary.

(a) Contributions to Provident Fund for employees at the rate of 12% p.a. of basic salary (as per regulations), are made
to registered Provident Fund administered by the government.

(b) Contributions are made to Superannuation plan at the rate of 15% p.a. of basic salary, up to a maximum limit of Rs.
1 lakh p.a. per employee. The obligation of the Company is limited to the amount contributed and it has no further
contractual or constructive obligation.

(c ) The expenditure recognised during the year

B. Defined Benefit Plan:

In respect of Gratuity, a defined benefit plan, is governed by the Code on Social Security, 2020 (the Act). The gratuity
plan provides for a lump sum payment to vested employees at retirement, death while in employment or on termination
of employment in accordance with the provisions under the Act. Vesting occurs upon completion of contractual period
of continuous years of service as defined in the Act. The level of benefit provided depends on the member’s length of
service and salary at the time of retirement/termination age. Provision for gratuity is based on actuarial valuation done by
an independent actuary as at the year end.

The estimates of rate of escalation in salary considered in actuarial valuation, takes into account inflation, seniority,
promotion and other relevant factors including supply and demand in the employment market. The above information
is extracted from the report obtained from Actuary.

B.6 Risks associated with defined benefit plan:

Gratuity is a defined benefit plan and Company is exposed to the following Risks:

Interest rate risk: A fall in the discount rate which is linked to the G.Sec. Rate will increase the present value of
the liability requiring higher provision.

Salary Risk: : The present value of the defined benefit plan liability is calculated by reference to the future salaries
of members. As such, an increase in the salary of the members more than assumed level will increase the plan's
liability.

Asset Liability Matching (ALM) Risk: The plan faces the ALM risk as to the matching cash flow. Entity has to
manage pay out based on pay as you go basis from own fund.

Mortality Risk: Since the benefits under the plan is not payable for life time and payable till retirement age only,
plan does not have any longevity risk.

The Sensitivity analysis has been determined based on reasonably possible changes of the respective assumptions
occurring at the end of the reporting period, while holding all other assumptions constant.

The sensitivity analysis presented above may not be representative of the actual change in the projected benefit
obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the
assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has
been calculated using the projected unit credit method at the end of the reporting period, which is the same method
as applied in calculating the projected benefit obligation as recognized in the balance sheet.

There was no change in the method and assumptions used in preparing the sensitivity analysis as compared to prior year.

C. Compensated Absences :

The Company’s employees are entitled for compensated absences which are allowed to be accumulated and encashed as
per the Company’s rule. The liability of compensated absences, which is non-funded, has been provided based on report
of independent actuary using “Projected Unit Credit Method”.

The obligation for compensated absences (other than sick leaves) (non-funded) is recognized using the projected unit
credit method and accordingly the long-term paid absence has been valued. The Liability towards leave encashment for
the year ended March 31, 2026 as per actuarial valuation is Rs. 63.19 lakhs (P.Y. Rs. 66.46 lakhs).

The Company has made provision for sick leave based on the expected utilisation of leaves as at the year ended March
31, 2026 of Rs. 6.37 Lakhs (P.Y.Rs. 3.36 Lakhs). The total leave provision as at the year ended March 31, 2026 stands at
Rs. 69.56 lakhs (P.Y. Rs. 69.82 lakhs).

Notes:

a. The above figures are exclusive of GST wherever applicable.

b. The amount outstanding are unsecured and will be settled in cash or receipt of goods or services. No guarantee
have been given. No expense has been recognized in the current period or prior years for bad or doubtful debts in
respect of the amounts owed by related parties.

c. The remuneration of the directors and key management personnel is determined by the remuneration committee
having regard to the performance of individual and market trends.

d. Key Management Personnel (KMP) who are under the employment of the Company are entitled to post employment
benefits and other long term employee benefits recognised as per Ind AS 19 - ‘Employee Benefits’ in the financial
statements. As these employee benefits are provided on the basis of actuarial valuation, for the Company as a
whole, hence the details in respect of long term benefits to KMP and their relatives are not disclosed. Further there
is no Share-based payments to Key Management Personnel of Company.

V. Capital Management

The Company's objective for capital management is to maximise shareholder value, safeguard business continuity and
support growth of the Company. Capital includes, Equity Capital, Securities Premium, and other reserves and surplus,
attributable to the equity shareholders of the Company. The Company determines the capital requirement based on
annual plans and long term and strategic investment and capital expenditure plans. The funding requirements are met
through mix of equity, operating cash flows generated and debt. The operating management, supervised by the Board of
Directors of the Company regularly monitors its key gearing ratio and other financial parameters and takes corrective
actions wherever necessary. The Company is not subject to any externally imposed capital requirements.

VI. Financial Risk Management

Company’s Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk
management framework. Management has identified the following risk.

• Credit Risk

• Market Risk

• Liquidity Risk

• Currency Risk

Company’s Audit Committee oversees how Management monitors compliance with the Company’s risk management
policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by
the Company.

A Credit Risk

Credit risk is the risk of financial loss arising from counter party failure to repay according to the contractual
terms or obligations. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of
creditworthiness as well as concentration of risks. Before accepting any new customer, the Company evaluates the
credit worthiness of the potentional customers based on external inquiries as deemed appropriate. The Company

only deals with parties which has good credit ratings / worthiness based on Company’s internal assessment. Credit
risk is controlled by analysing credit limits and creditworthiness of customers on a continuous basis to whom the
credit has been granted after necessary approvals for credit. The Company has not acquired any credit impaired
asset. There was no modification in any financial assets.

(i) Trade Receivable

Customer credit is managed by each business division subject to the Company’s established policy procedures
and control related to customer credit risk management.

Export customers are mainly against Letter of Credit. Each outstanding customer receivables are regularly
monitored and if outstanding is above due date the further shipments are controlled and can only be released
if there is a proper justification.

Credit risk on trade receivables and contract assets are managed by each business unit subject to the
Company’s established policy, procedures and control relating to customer credit risk management. Credit
quality of a customer is assessed and individual credit limits are defined in accordance with this assessment.
Moreover, given the diverse nature of the Company’s businesses, trade receivables and contract assets are
spread over a number of customers with no significant concentration of credit risk. During the F.Y. 2025¬
26, Company had one customer, (March 31, 2025: Nil) that contributed Rs. 365.78 lakhs (March 31, 2025:
Rs. Nil) and accounted for approximately 25.32% (March 31, 2025 : Nil %) respectively of the total sales
generated during F.Y. 2025-26 & F.Y. 2024-25 respectively.

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 and their credit
worthiness are monitored at periodical intervals. The maximum exposure to credit risk at the reporting date
is the carrying value of each class of financial assets.

(ii) Other Financial Assets

Credit risk from balances with banks is in accordance with the Company policy. Investment of surplus funds
are made only in approved Mutual Funds or bank deposits. The other financial assets are from various forum
of Government authorities and are released by Government authorities on completion of relevant terms and
conditions for the release of outstanding.

B Market Risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes
in market rates and prices (such as interest rates, foreign currency exchange rates and commodity prices) or in the
price of market risk-sensitive instruments as a result of such adverse changes in market rates and prices. Market risk is
attributable to all market risk-sensitive financial instruments, all foreign currency receivables and payables and all short
term and long-term debt. The Company is exposed to market risk, primarily related to foreign exchange rate risk, interest
rate risk and commodity price risk. Thus, the Company’s exposure to market risk is a function of investment activities
and revenue generating and operating activities in foreign currencies.

The Company has designed risk management frame work to control various risks effectively to achieve the business
objectives. This includes identification of risk, its assessment, control and monitoring at timely intervals.

The sensitivity analyses in the following sections relates to the outstanding balance as at March 31, 2026 and March 31,
2025.

The sensitivity analysis have been prepared on the basis that the proportion of financial instruments in foreign currencies
are all constant in place at March 31, 2026. The sensitivity of the relevant profit or loss item is the effect of the assumed
changes in respective market risks. This is based on the financial assets and financial liabilities held at March 31, 2026
and March 31, 2025.

(i) Interest Rate Risk:

The Company’s investments are primarily in fixed rate interest bearing investments. Hence, the Company is not
significantly exposed to interest rate risk.

(ii) Foreign Currency risk:

The Company is also exposed to foreign currency risk on certain transactions that are denominated in a currency
other than the Company’s functional currency; hence exposures to exchange rate fluctuations arise. The risk is that
the functional currency value of cash flows will vary as a result of movements in exchange rates. The Company’s
foreign exchange risk arises from foreign currency revenues and expenses, (primarily in US Dollars and Euros). As
a result, if the value of the Indian rupee appreciates relative to these foreign currencies, the Company’s revenues
and expenses measured in Indian rupees may decrease or increase and vice-versa. The exchange rate between
the Indian rupee and these foreign currencies have changed substantially in recent periods and may continue to
fluctuate substantially in the future.

Foreign Currency Sensitivity

The following tables demonstrate the sensitivity to a reasonably possible change in USD and EUR exchange
rates, with all other variables held constant. The impact on the Company’s profit before tax is due to changes in
the fair value of monetary assets and liabilities. The Company evaluates exchange rate exposure arising from
foreign currency transactions. The Company follows established risk management policies and standard operating
procedures. The Company’s exposure to foreign currency changes for all other currencies is not material.

Exposure to market risk with respect to commodity prices primarily arises from the Company’s purchases and
sales mainly of steel and other engineering related products. These are commodity products, whose prices fluctuate
significantly over short periods of time. The prices of the Company’s raw materials generally fluctuate in line
with commodity cycles, although the prices of raw materials used in the Company’s business are generally more
volatile. Cost of raw materials forms the largest portion of the Company’s cost. Commodity price risk exposure
is evaluated and managed through operating procedures and sourcing policies wherever possible based on market
condition.

Inventory sensitivity analysis (raw materials, work-in-progress and finished goods)

A reasonably possible change of 10 % in prices of inventory at the reporting date would have increased (decreased)
profit or loss by the amounts shown below. This analysis assumes that all other variables remain constant.

The Company is exposed to mutual fund price risks arising from mutual fund investments. Mutual fund investments
are held for strategic rather than trading purposes. The Company does not actively trade these investments.

C Liquidity Risk

(i) Liquidity risk management

Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral
obligations without incurring unacceptable losses. The Company’s objective is to, at all times maintain optimum
levels of liquidity to meet its cash and collateral requirements. The Company closely monitors its liquidity position
and deploys a robust cash management system. It maintains adequate sources of financing including bilateral
loans, debt, and overdraft from banks at an optimised cost. Working capital requirements are adequately addressed
by internally generated funds. Trade receivables are kept within manageable levels. Further, the Company has an
undrawn balance of Rs. 245.93 Lakhs against the overdraft facility sanctioned by the bank.

(ii) Maturities of financial liabilities

The following tables detail the Company's remaining contractual maturity for its non-derivative financial liabilities
with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial
liabilities based on the earliest date on which the Company can be required to pay. The tables include both interest
and principal cash flows. The contractual maturity is based on the earliest date on which the Company may be
required to pay.

VIII. Fair Value Measurement

The significant accounting policies, including the criteria of recognition, the basis of measurement and the basis on
which income and expenses are recognised, in respect of each class of financial asset, financial liability, and equity
instrument are disclosed in note 2.8 of the Ind AS financial statement.

(a) Financial assets and liabilities

The carrying value of financial instruments by categories as at March 31, 2026 are as follows:

Carrying amounts of cash and cash equivalents, trade receivables and trade payable as at March 31, 2026 and
March 31, 2025 approximate the fair value because of their short term nature. Difference between the carrying
amount and fair values of other financial liabilities subsequently measured at amortized cost is not significant in
each of the year’s presented.

The fair value of the financial assets and liabilities are 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. The following
methods and assumptions were used to estimate the fair values:

(i) Receivables are evaluated by the Company based on parameters such as interest rates and individual credit
worthiness of the customer. Based on this evaluation, allowances are taken into account for the expected
credit losses of these receivables.

(ii) The fair value of financial liabilities, security deposit, as well as other financial liabilities is estimated
by discounting future cash flows using rates currently available for debt on similar terms, credit risk and
remaining maturities..

Fair Value Hierarchy

The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are
either observable or unobservable and consist of the following three levels:

Level 1: Inputs are quoted prices (unadjusted) in active markets for identical assets and liabilities.

Level 2: Inputs are other than quoted prices included within level 1 that are observable for the asset or
liability either directly (i.e. prices) or indirectly (i.e. derived from prices).

Level 3: Inputs are based non observable market data. Fair value is determined in whole or in part using a
valuation model based on assumptions that are neither supported by prices from observable current market
transactions in the same instrument nor are they based on available market data.

The following table summarizes financial assets and liabilities measured at fair value on a recurring basis and
financial assets that are not measured on fair value on recurring basis (but fair value disclosures are required).

Figures in bracket denotes previous year.

Note:

The amounts shown above represents the best possible estimates arrived at on the basis of available information.
The uncertainties are dependent on the outcome of the different legal processes. The timing of future cash flows will
be determinable only on receipt of judgments / decisions pending with various forums/authorities. The Company
does not expect any reimbursements against the above.

X In respect of a joint property development transaction of earlier year, which was subject matter of arbitration award, an
appeal is filed before the division bench of Hon’ble Bombay High Court by both the parties against decision of single
bench of Hon’ble Bombay High Court and the same is pending as on date. The Company has already made provision
of Rs.63.98 lakhs in terms of arbitration award in the FY 2016-17 against the claim of Rs.1597.39 lakhs plus interest. In
view of management no further liability is expected.

XI Provisions :

A. Disputed Matters :

Provision for disputed matters in respect of known contractual risks, litigation cases, duties and other levies / claims, the
actual outflow of which will depend on the outcome of the respective proceedings.

The movements in the above account are summarized below:-

XII Interest Subsidy:

(a) Recognition of interest subsidy: Company has been recognising interest subsidy in terms of its eligibility under the
New Textile Policy 2012 as Other Income from May 2014 to September 2019.

(b) Recovery of subsidy from Government: The aggregate subsidy of Rs. 127.73 lakhs recognized by the Company
for the period from October 2016 to September 30, 2019, has remained outstanding as on March 31, 2026. The
technical issues faced on government portal has been resolved and the same are pending for processing by the
Government authorities.

Accordingly, the subsidy of Rs. 127.73 lakhs shown under the head Non-Current Assets - Other Financial Assets, has

been considered as good and recoverable in nature.

XV Discontinued Operations:

A) Textile Division

i) On April 15, 2025, considering the outlook and scenario of the Textile business, the Board of Directors, decided
to close down the Textile Division (“Division”). The Company, subsequently filed an application with Ministry
of Labour, State Government of Maharashtra for closure of the division on April 16, 2025. The Ministry issued
a final closure order u/s 25(O)(2) of the Industrial Disputes Act, 1947 dated June 19, 2025. Accordingly, the
said Division has been considered as discontinued operations in the Financial Statements for the year ended
March 31, 2026 and accordingly necessary disclosure has been made as per the requirement of Ind AS 105.

ii) Pursuant to the aforesaid closure order, the Company retrenched the remaining employees of discontinued
operations and has given them retrenchment compensation of Rs. 158.73 lakhs.

iii) The management has made necessary provision for the expected liability (including workers’ liabilities) of
said division. There are certain pending labour cases pertaining to said division, the outcome of the same is
presently unascertainable. The management is confident that no material liability will arise on this account.

iv) During the financial year ended March 31, 2026, the Company received Supreme Court order reversing
earlier Bombay High Court Order in respect of electricity duty for period April 2001 to April 2005 of the
textile division. Accordingly, the Company has made provision of Rs. 112.39 lakhs, for electricity duty
including interest on an estimated basis, which matter was earlier considered as contingent liability.

v) The loss of discontinued operation is after considering the provision made as covered (ii), (iii) & (iv) same.

vi) Further, the Board of Directors has decided to dispose of the Plant and Machinery and certain portion of land
of the said division and accordingly the said assets have been classified as “Asset Held for Sale”. The Company
has valued such assets at lower of written down value or fair value. As the estimated fair value is higher than the
written down value of those assets, it has been carried at written down value. The Company has not provided
depreciation on such assets from the date the Property, Plant and Equipments were classified as Assets held for
Sale. The remaining land and building of the said division has been continued to be shown as non current asset
under Property Plant and Equipment (PPE), as management has not firmed up any plan for use / disposal.

vii) The Company now has only one segment i.e. Engineering Division and hence there is no segment disclosure
required.

XVI Impact of New Labour Codes

On November 21, 2025, the Government of India notified four Labour Codes ("the Codes"), effective immediately,
replacing the existing 29 labour laws. In view of the introduction of these Codes, Management assessed its impact and
had made a provision of Rs. 5.37 lakhs in the result of year ended March 31, 2026. Additional provision, if any, will be
made in the period in which the liability is ascertained, after considering any clarification on the Codes or Rules.

XVII Additional Regulatory Information

i. Loan and advances to specified persons:

The Company has not granted any loans or advances in the nature of loans to any promoters, directors, KMPs, and
the related parties..

ii. Details of benami property held:

The Company does not have any Benami property, where any proceedings have been initiated on or are pending
against the Company for holding any Benami Property.

iii. Borrowings secured against current assets:

The Company is not required to submit any quarterly returns or statements of current assets. (Refer Note 12.3)

iv. Wilful defaulter:

The Company has not been declared as wilful defaulter by any bank or financial institutions or other lenders.

v. Relationship with struck off companies:

The Company has no transactions with the companies struck off under section 248 of the Companies Act, 2013 or
section 560 of the Companies Act, 1956 during the year ended March 31, 2026 and March 31, 2025.

vi. Registration of charges or satisfaction of charges with the Registrar of Companies (ROC):

The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory period. (Refer Note 12.3).

vii. Compliance with number of layer of companies:

The Company does not have any subsidiaries and hence the disclosure clause is not applicable.

viii. Ratio:

For Ratio as required is given in Annexure A attached to the Financial Statement.

ix. Compliance with approved scheme of arrangements:

The Company has not entered into scheme of arrangements in terms of section 230 to section 237 of the Companies
Act, 2013 which has an accounting impact during the year ended March 31, 2026 and previous year ended March
31, 2025.

x. Utilisation of borrowed funds and share premium:

(A) The Company has not advanced or loaned invested funds (either borrowed funds or share premium or
any other sources or kind of funds) to any other persons or entities, including foreign entities with the
understanding that the Intermediary shall::

(a) Directly or indirectly lend or invest in other persons or entities identified in any manners 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.

(B) The Company has not received any fund from any persons or entities, including foreigh 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.

xi. Utilisation of borrowings availed from banks and financial institutions:

The Company does not have any borrowings hence the disclosure clause is not applicable.

xii. Corporate Social Responsibiliy :

The Company does not meet any of the criteria specified u/s 135 of the Act, hence the provisions are not applicable.

xiii. Undisclosed Income:

There is no income surrendered or disclosed as income during the year ended March 31, 2026 and previous year
ended March 31, 2025 in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the
books of accounts.

ix. Details of crypto currency or virtual currency:

The Company has not traded or invested in crypto currency or virtual currency during the year ended March 31,
2026 and March 31, 2025.

XVIII The Company’s financial statements are authorized for issue in accordance with a resolution of the Board of Directors
on May 12, 2026 in accordance with the provisions of the Companies Act, 2013 and are subject to the approval of the
shareholders at the ensuing Annual General Meeting.

XIX The figures in the financial statements are rounded off to the nearest lakhs and indicated in lakhs of Rupees..

XX Figures for the previous year have been regrouped / reclassified wherever necessary to confirm to current year’s
classification.