* The Company has used a practical expedient by computing the expected credit loss allowance for trade receivables based on a provision matrix. The provision matrix takes into account historical credit loss experience based on : a) Past trend of outstanding receivables over a rolling period of past 24 months and b) actual amount of outstanding receivables as on the reporting date. Trade receivables are generally on credit terms of 0 to 45 days based on the type of customer. The Company's exposure to credit and currency risks and loss allowance related to trade receivables are disclosed in Note 30. There are no unbilled receivables, hence the same is not disclosed in the aging schedule.

No expense was recognised during the current year (31 March 2025: Nil) in respect of bad debt due from related parties.

For terms and conditions of trade receivables owing from related parties, refer Note 32

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

The Company has a single class of equity shares. Accordingly, all equity shares rank equally with regard to dividends and share in the company's residual assets on winding up. The equity shareholders are entitled to receive dividend as declared from time to time, subject to preferential right of preference shareholders to payment of dividend. The voting rights of an equity shareholder on a poll (not on show of hands) are in proportion to his/its share of the paid-up equity share capital of the company. Voting rights cannot be exercised in respect of shares on which any call or other sums presently payable has not been paid. Failure to pay any amount called up on shares may lead to their forfeiture. On winding up of the company, the holders of equity shares will be entitled to receive the residual assets of the company, remaining after distribution of all preferential amounts, in proportion to the number of equity shares held.

(e) Aggregate number of bonus shares issued and shares brought back during the period of five years immidiately preceding the reporting date:

- There are no bonus shares issued during the period of five years immidiately preceeding the reporting date.

- There are no buy back of shares during the period of five years immidiately preceeding the reporting date

- No share have been issued for consideration other than cash during the period of five years immediately proceeding the reporting data..

^B Nature and purpose of reserves

i) General reserve

The general reserve is a free reserve which is used from time to time to transfer profits from / to retained earnings for appropriation purposes. As the general reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the general reserve will not be reclassified subsequently to statement of profit and loss.

ii. Securities premium

Securities premium is used to record the premium received on issue of shares. It is utilized in accordance with the provisions of Companies Act, 2013.

iii. Retained earnings

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

15 Capital management

The Company's policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. It sets the amount of capital required on the basis of annual business and long-term operating plans which include capital and other strategic investments. The funding requirements are met through equity and cash generated through operations. The Company does not have any external borrowings. The Company monitors capital using a ratio of 'adjusted net debt' to 'total equity'. For this purpose, adjusted net debt is defined as total liabilities, comprising provisions, financial liabilities, other current liabilities less cash and cash equivalents. Total equity comprises all components of equity.

All trade payables balance are current. Trade payables are non-interest bearing and are generally on terms of 0 to 30 days based on the type of vendor. The Company's exposure to currency and liquidity risk related to trade payables (financial liabilities) is disclosed in note 30.

*New laptops acquired in exchange for old laptops amounting to INR 9000.00 are recognized at the fair value (market price) of the asset acquired, since the transaction has commerical substance. The same has been considered for the purpose of computing Gain on sale of Asset. Further the carrying amount of asset exchanged has been adjusted in the capital creditors for payment purposes.

*Supreme Court vide their judgement dated February 28, 2019 clarified that Provident fund deduction is to be made on basic salary and on other salary components which are universally made available to all employees. The Company based on legal opinion believes that there are interpretative challenges and significant uncertainities surrounding the determination of liability including the period of assessment, application for present and past employees, Company's liability towards employees' contribution and assessment of interest and penalties. The same shall amount to INR 3,943.67 thousands.

The deferred revenue (contract liabilities) primarily relate to the advance consideration received from customer for goods to be sold in future.

Revenue is measured based on the consideration specified in a contract with a customer. The company recognizes revenue when it transfers control over the good to the customer. Invoice are generated at that point in time. Invoice are usually payable within a range of 0 to 45 days based on type of customer and no discounts were provided.

D. Disaggregation of revenue from contracts with customers

Revenue from contracts with customers are disaggregated into categories that depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. The Company identifies the product lines, amongst others to indicate the factors as mentioned above. In the following table, revenue from contracts with customers is disaggregated by primary geographical market.

(b) Information about major customers

Revenue to the extent of INR 457,219.17 thousands (31 March 2025: INR 421,249.01 thousands) are derived from four major external customers who individually contribute more than 10% of the total segment revenue.

On November 21, 2025, the Government of India notified four Labour codes - the Code on Wages, 2019, the Code on Social Security, 2020, the Industrial Relations Code, 2020 and the Occupational safety, Health and Working Conditions Code, 2020 - consolidating 29 existing labour laws (collectivel referred to as the New Labour Codes). However, the final rules under these codes are yet to be notified.The Ministry of Labour & Employment publised draft Central rules and FAQs to enable assessment of the financial impact due to changes in regulations. The Company has assessed and disclosed for the incremental impact of these changes on the basis of best information available, consistent with the guidance provided by the Institute of Chartered Accountants of India. Considering the materiality and regulatory-driven, non-recurring nature of this impact, the Company has estimated and recognized the additional gratuity and leave liability benefits of INR 2,399.29 thousands for the year ended 31st March 2026, primarily arising due to change in wage definition. The Company continues to monitor the finalisation of Central/ State Rules and clarifications from the Government on other aspects of the Labour Code and would provide appropriate accounting effect on the basis of such developments as needed.

The Company operates the following post-employment defined benefit plans.

The Company has a defined benefit gratuity plan in India ("the plan"), governed by the Payment of Gratuity Act, 1972. The plan entitles an employee, who has rendered at least five years of continuous service, to gratuity at the rate of fifteen days wages for every completed year of service or part thereof in excess of six months, based on the rate of wages last drawn by the employee concerned. These defined benefit plans expose the Company to actuarial risks, such as longevity risk, interest rate risk and market (investment) risk.The defined benefit plan for gratuity is administered and managed by a single gratuity fund (Life Insurance Corporation of India) that is legally separate from the Company.

A. Funding

The Plan is fully funded by the Company with Life Insurance Corporation of India. The funding requirements are based on the gratuity fund's actuarial measurement framework set out in the funding policies of the plan. The funding of the plan is based on a separate actuarial valuation for funding purposes for which the assumptions have been set out in (E). Employees do not contribute to the plan.

The Company expects to pay INR 1,157.74 in contributions to its defined benefit gratuity plans in FY 2026-27.

The Company operates the following plan for leave encashment

The Company has a leave encashment plan in India (the 'Plan'). The Plan provides for the encashment of accumulated unutilised leave balance by eligible employees, subject to the rules of the Plan. These plans expose the Company to actuarial risks, such as longevity risk, interest rate risk and market (investment) risk. The plan for leave encashment is administered and managed by a single leave encashment fund (Life Insurance Corporation of India) that is legally separate from the Company.

A. Funding

The Plan is fully funded by the Company with Life Insurance Corporation of India. The funding requirements are based on the leave encashment fund's actuarial measurement framework set out in the funding policies of the plan. The funding of the plan is based on a separate actuarial valuation for funding purposes for which the assumptions have been set out in (E). Employees do not contribute to the plan.

The Company expects to adjust INR (982.98) during its contributions to its leave encashment plans in FY 2026-27.

B. Reconciliation of the net (asset) / liability

The following table shows a reconciliation from the opening balances to the closing balances for the net (asset) / liability and its components:

B. Measurement of fair values Fair value hierarchy

Level I - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level II - Inputs other than quoted prices included within Level I that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e.derived from prices).

Level III - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

Note: a) In above table, the Company has disclosed the fair value of each class of financial assets and financial liabilities in a way that permits the information to be compared with the carrying amounts. In addition, it has reconciled the assets and liabilities to the different categories of financial instruments as defined in Ind AS 109.

b) The Company has not disclosed fair values of financial instruments such as trade receivables, loans, cash and cash equivalents, Bank balances other than cash and cash equivalents, other financial assets, trade payables and other financial liabilities, since their carrying amounts are reasonable approximates of fair values.

c) The Company groups financial instruments into classes that are appropriate to the nature of the information disclosed and that take into account the characteristics of those financial instruments. Although Ind AS 107 does not define 'classes', as a minimum instruments measured at amortized cost should be distinguished from instruments measured at fair value.

B. Financial risk management

i. Risk management framework

The Company's business activities are exposed to a variety of financial risks, namely credit risk, liquidity risk and market risk. The Company's Board of directors has overall responsibility for the establishment and oversight of the Company's risk management framework. The board of directors has established the risk management committee, which is responsible for developing and monitoring the Company's risk management policies. The committee reports regularly to the board of directors on its activities. The key risks and mitigating action are also placed before the audit committee of the Company.

The Company's risk management policies are established to identify and analyze the risks faced by the Company, to set and monitor appropriate risk limits and controls, periodically review the changes in market conditions, reflect the changes in the policy accordingly, to monitor the risk and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company's activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

The 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. The Company's audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the audit committee.

ii. Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company's receivables from customers and loans. The carrying amounts of financial assets and contract assets represent the maximum credit exposure.

Impairment losses on financial assets and contract assets recognized in statement of profit and loss for the year ended 31 March 2026 is Nil (31 March 2025: Nil)

Trade receivables

The Company has developed guidelines for the management of credit risk from trade receivables. The Company's exposure to this credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry and country in which the customer operates, also has an influence on management credit risk assessment of its customer based. Details of concentration of revenue are included in Note 36(b).

Credit risk is managed through credit approvals, establishing credit limits and monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. The Company establishes an allowance for doubtful debts that represents its estimate of incurred losses in respect of the Company's trade receivables. The Company does not otherwise require collateral in respect of trade receivables, loans and other financial assets. The Company does not have trade receivables, loans and other financial assets for which no loss allowance is recognized because of collateral.

Exposures to customers outstanding at the end of each reporting period are reviewed by the Company to determine incurred and expected credit losses. Historical trends of impairment of trade receivables do not reflect any significant credit losses. Given that the macro economic indicators affecting customers of the Company have not undergone any substantial change, the Company expects the historical trend of nil credit losses to continue. Further, management believes that the unimpaired amounts that are past due by more than 30 days are still collectible in full, based on historical payment behavior and extensive analysis of customer credit risk. As at 31 March 2026, there are no dues collectible which are aged more than 90 days.

Exposures to customers outstanding at the end of each reporting period are reviewed by the Company to determine incurred and expected credit losses.

Cash and bank balances

The Company held cash and cash equivalents and other bank balances of INR 14,165.30 thousands as at 31 March 2026 (31 March 2025: INR 20,764.94 thousands). The cash and cash equivalents and other bank balances are held with the banks. Impairment on cash and cash equivalents and other bank balances has been measured on a 12 month expected loss basis and reflects the short maturities of the exposures. The Company considers that its cash and cash equivalents have low credit risk based on the external credit ratings of the counterparties.

Other financial assets (current and non-current)

Other financial assets comprises fixed deposits with bank and financial institutions, interest accrued on fixed deposits and export incentives receivable. These fixed deposits are held with credit worthy banks and financial institutions. The credit worthiness of such banks and financial institutions is evaluated by the management on an ongoing basis and is considered to be good with low credit risk. Export incentive receivable pertains to duty drawback, RoDTEP (Refund of Duties and Taxes on Exported Products) from Customs authorities and rebate on exports receivable from GST authorities. The Company does not expect any losses from non-performance by these counter parties.

iii. Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company's objective when managing when managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company's reputation. In doing this, management considers both normal and stressed conditions.

Cash flow from operating activities provides the funds to service and finance the financial liabilities on a day-to-day basis.

The Company uses a costing methodology to cost its products and services, which assist in monitoring the cash flow requirements and optimizing its cash return on investments.

The Company aims to maintain the level of its cash and cash equivalents, other bank balances and other financial assets at an amount in excess of expected cash outflows on financial liabilities (other than trade payables) over the next six months. The ratio of investments to outflows was 359.96 as at 31 March 2026 (31 March 2025: 336.12)

The Company regularly monitors the rolling forecasts to ensure that it has sufficient cash on an on-going basis to meet operational needs. Any short term surplus cash generated, over and above the amount required for working capital management and other operational requirements, is retained as cash and cash equivalents (to the extent required) and any excess is invested in interest bearing term deposits with appropriate maturities to optimise the cash returns on investments while ensuring sufficient liquidity to meet its liabilities.

The Company also monitors the level of expected cash inflows on trade receivables together with expected cash outflows on trade payables. As at 31 March 2026, the expected cash inflows from trade receivables are INR 45,269.42 thousands (31 March 2025:INR 48,742.96 thousands) and expected cash outflows from trade payables are INR 19,031.23 thousands (31 March 2025: INR 28,217.06 thousands). This excludes the potential impact of extreme circumstances that cannot reasonably be predicted, such as natural disasters.

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and include contractual interest payments and exclude the impact of netting agreements.

iv. Market risk

Market risk is the risk of loss of future earnings or fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the market prices - (e.g. foreign exchange rates, interest rates, equity prices and other market change)s that affect market risk sensitive instruments and in turn will affect the Company's income or the value of its holdings of financial instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables. The Company is exposed to market risk primarily related to the risk of foreign exchange rate risk (currency risk) over receivables and payables. The Company does not manage market risks by using derivatives.

v. Currency risk

The Company is exposed to transactional foreign currency risk to the extent there is a mismatch between the currencies in which sales, purchases, receivables and payables are denominated and the respective functional currencies of the Company. Foreign currency risk arise in USD and other foreign currency denominated transactions mainly from monetary receivables gives rise to exchange rate fluctuation risk.

Exposure to currency risk

The summary quantitative data (INR against USD) about the Company's exposure to currency risk (based on notional amounts) as reported to the management is as follows.

32 Related parties

Parties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other party in making financial and operating decisions.

A Parent and ultimate controlling party

The parent and ultimate controlling party of the Company as at 31 March 2026 and 31 March 2025 is Panasonic Holdings Corporation, Japan.

33 Dues to micro and small enterprises - As per Micro, Small and Medium Enterprises Development Act, 2006 (‘MSMED’ Act)

The Ministry of Micro, Small and Medium Enterprises has issued an Office Memorandum dated 26 August 2008 which recommends that the Micro and Small Enterprises should mention in their correspondence with its customers the Entrepreneurs Memorandum Number as allocated after filing of the Memorandum. Based on the information available with the Company, there are no overdues outstanding to micro enterprises and small enterprises as defined under the Micro, Small and Medium Enterprises Development Act, 2006. Further, the Company has not received any claim for interest from any supplier under the said Act. Accordingly the details are given below:

This information has been determined to the extent such parties have been identified on the basis of information available with the Company.

Note: Variance in ratios compared to the previous year

a) The Company has not presented ratios relating to debt equity ratio and debt service coverage ratio since the Company has not availed long term debt facilities in the current period and the preceding comparative period.

b) The average inventory has increased primarily due to increase in procurement quantity/price of furnace oil used for production on account of expected Increase in sales in the near future and also on decrease in cosnumption of SKO oil and pyrolysis oil (LDO oil) due to main usage of furnace oil.

35 Other Statutory Information

a) The Company has not revalued its property, plant and equipment (including the right of use assets) and intangible assets.

b) No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

c) The Company does not have any borrowings from banks and financial institutions on the basis of security of current assets. Accordingly, it is not required to file any quarterly returns or statements of current assets with banks and financial institutions.

d) The Company has not been declared as a wilful defaulter by any bank or financial institution or other lenders.

e) Compliance with clause (87) of section 2 of the Companies Act, 2013 read with Companies (Restriction on number of Layers) Rules, 2017 with respect to layer of companies are not applicable to the Company.

f) The Company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

g) The Company do not have any charges or satisfaction which is yet to be registered with Registrar of companies beyond the statutory period.

h) The Company has not entered into any scheme of arrangement as per sections 230 to 237 of the Companies Act, 2013.

i) The Company has not advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

j) The Company has not received, from any person(s) or entity(ies), including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Parties ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

k) The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

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

m) The Company has a process whereby periodically all long term contracts (including derivative contracts) are assessed for material foreseeable losses. At the year end, the Company has reviewed and there are no long term contracts for which there are any material foreseeable losses.

36 Transfer pricing

The Company has international / domestic transactions with related parties. For the year ended 31 March 2025, the Company has obtained an Accountant's report from a Chartered Accountant in respect of transactions with related parties as required by the relevant provisions of the Income tax act, 1961 and the same has been filed with the tax authorities. For the year ended 31 March 2026, the Company confirms that it has maintained documents as prescribed by the Income-tax Act, 1961 to prove that these transactions are at arm's length and the aforesaid legislation will not have any impact on the financial statements, particularly on the amount of tax expense and that of provision for taxation.

37 Segment information

a. Description of operating segments and principal activities

The Company is is engaged in the manufacture of carbon rods / carbon electrodes, which are used as a key component in dry cell batteries., catering to both domestic and export markets, including supplies to Panasonic group companies.

b. Basis of segmenting

An operating segment is a component of the entity that engages in business activities from which it may earn revenues and incur expenses (including revenues and expenses relating to transactions with other components of the same entity) for which discrete financial information is available.

The Company has a single operating segment, namely "carbon rods / carbon electrodes" used in dry cell batteries. The operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The Managing Director (MD) of the Company has been identified as the chief operating decision maker who makes analysis of various performance indicators of the Company, assesses the resources to be allocated at an overall level considering the business / industry it operates in, reviews the financial performance / position of the Company, and makes strategic decisions. The secondary segment for the Company is geographic segments and is based on the location of its customers within India (domestic) and outside India (exports). All operating segments' operating results are reviewed regularly by the Managing Director (MD) and the same has been considered as a single unit. Therefore there is no reportable segment for the Company. Therefore, the disclosures as per Ind AS 108 - 'Operating Segments' is not applicable. The Company is domiciled in India.

b. Geographical information

The geographical information analyses the Company's revenue and non-current assets by the Company's country of incorporation (i.e. India) and other countries. In presenting the geographical information, segment revenue has been based on the geographical location of customers and segment assets which have been based on the geographical location of the assets.

* Non-current assets exclude financial instruments, deferred tax assets and post-employment benefit assets. All property, plant and equipment are located in India.

c. Major customer

Revenue from the top 4 customers of the Company is INR 457,219.17 thousands (31 March 2025: INR 421,249.01 thousands) which are more than ten percent each of the Company's total revenue.

38. Dividend

Dividend paid during the year ended March 31, 2026 represents final dividend of INR 12.00 per equity share for the year ended March 31,2025. Dividends paid during the year ended March 31,2025 include an amount of 12.00 per equity share towards final dividend for the year ended March 31, 2024. Dividends declared by the Company are based on the profit available for distribution. On May 6, 2026, the Board of Directors of the Company have proposed a final dividend of 12.00 per equity share in respect of the year ended March 31,2026 subject to the approval of shareholders at the Annual General Meeting, and if approved, would result in cash outflow of approximately 57,600 thousands.

39. Events after the balance sheet date

The Company has evaluated subsequent events from the balance sheet date through 06 May 2026, the date on which the financial statements were authorised by the Board of Directors of the Company and determined that there are no items to disclose.