p) Provisions, contingent liabilities and

contingent assets

(i) Provisions

A provision is recognized when the Company
has a present obligation (legal or constructive)
as a result of past event, it is probable that an
outflow of resources embodying economic
benefits will be required to settle the obligation
and a reliable estimate can be made of the
amount of the obligation. These estimates are
reviewed at each reporting date and adjusted
to reflect the current best estimates. If the
effect of the time value of money is material,
provisions are discounted using a current pre¬
tax rate that reflects, when appropriate, the
risks specific to the liability. When discounting
is used, the increase in the provision due to the
passage of time is recognized as a finance cost.

(ii) 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
unless the probability of outflow of resources
is remote.

(iii) Contingent assets

A contingent asset is a possible asset that
arises from past events and whose existence
will be confirmed only by- the occurrence
or non-occurrence of one or more uncertain
future events not wholly within the control of
the entity. The Company does not recognize
the contingent asset in its standalone
financial statements since this may result
in the recognition of income that may never
be realised. Where an inflow of economic
benefits is probable, the Company disclose
a brief description of the nature of contingent
assets at the end of the reporting period.
However, when the realisation of income is
virtually certain, then the related asset is not
a contingent asset and the Company recognize
such assets.

Provisions, contingent liabilities and contingent
assets are reviewed at each balance
sheet date.

q) Retirement and other employee benefits
Short-term obligations

Liabilities for wages and salaries, including non¬
monetary benefits that are expected to be settled
wholly within twelve months after the end of the
period in which the employees render the related
service are recognized in respect of employee
service upto the end of the reporting period and
are measured at the amount expected to be paid at
undiscounted value when the liabilities are settled.
The liabilities are presented as current employee
benefit obligations in the balance sheet.

Defined benefit plan - Gratuity

The Employee's Gratuity Fund Scheme, which is
defined benefit plan, maintains its investments
with Life Insurance Corporation of India (LIC).
The liabilities with respect to Gratuity Plan are
determined by actuarial valuation on projected
unit credit method on the balance sheet date,
based upon which the Company contributes to the
Gratuity Scheme. The difference, if any, between
the actuarial valuation of the gratuity of employees
at the year end and the balance of funds is provided
for as assets/ (liability) in the books. Net interest is
calculated by applying the discount rate to the net
defined benefit liability or asset.

The Company recognizes the following changes in
the net defined benefit obligation under employee
benefit expense in standalone statement of profit
and loss:

• Service costs comprising current service
costs, past-service costs, gains and losses on
curtailments and non-routine settlements

• Net interest expense or income

Remeasurements, comprising of actuarial
gains and losses, the effect of the asset ceiling,
excluding amounts included in net interest on
the net defined benefit liability and the return on
plan assets (excluding amounts included in net
interest on the net defined benefit liability), are
recognized immediately in the Balance Sheet with
a corresponding debit or credit to retained earnings
through other comprehensive income in the period
in which they occur. Remeasurements are not
reclassified to profit and loss in subsequent periods.
Defined contribution plans

Defined contribution plans are retirement
benefit plans under which the Company pays
fixed contributions to separate entities (funds)

or financial institutions or state managed benefit
schemes. The Company has no further payment
obligations once the contributions have been paid.
The defined contributions plans are recognised
as employee benefit expense when they are due.
Prepaid contributions are recognised as an asset to
the extent that a cash refund or a reduction in the
future payments is available.

Other employee benefit - Compensated
absence

Liability in respect of compensated absences
becoming due or expected to be availed after the
balance sheet date is estimated on the basis of an
actuarial valuation performed by an independent
actuary using the projected unit credit method.
Actuarial gains and losses arising from past
experience and changes in actuarial assumptions
are charged to standalone statement of profit and
loss in the year in which such gains or losses are
determined. The Company presents the entire
leave balance at the end of reporting period as a
current liability in the balance sheet, since it does
not have a right at end of the reporting period to
defer settlement of the liability for at twelve months
after the reporting period

r) Financial instruments

A financial instrument is any contract that gives
rise to a financial asset of one entity and a financial
liability or equity instrument of another entity.

Financial Assets

Initial recognition and measurement

Financial assets are classified, at initial recognition,
as subsequently measured at amortised cost, fair
value through other comprehensive income (OCI),
and fair value through profit or loss.

The classification of financial assets at initial
recognition depends on the financial asset’s
contractual cash flow characteristics and the
Company’s business model for managing them.
With the exception of trade receivables that do not
contain a significant financing component for which
the Company has applied practical expedient, the
Company initially measures a financial asset at
its fair value plus, in the case of a financial asset
not at fair value through profit or loss, transaction
costs. Trade receivables that do not contain a
significant financing component are measured at
the transaction price determined under Ind AS 115.
Refer to the accounting policies in section "Revenue
from contracts with customers".

For a financial asset to be classified and measured
at amortised cost or fair value through other
comprehensive income, it needs to give rise to

cash flows that are ‘solely payments of principal
and interest (SPPI)’ on the principal amount
outstanding. This assessment is referred to as the
SPPI test and is performed at an instrument level.
Financial assets with cash flows that are not SPPI
are classified and measured at fair value through
profit or loss, irrespective of the business model.

The Company's business model for managing
financial assets refers to how it manages its
financial assets in order to generate cash flows. The
business model determines whether cash flows will
result from collecting contractual cash flows, selling
the financial assets, or both.

Financial assets classified and measured at
amortised cost are held within a business model
with the objective to hold financial assets in order to
collect contractual cash flows while financial assets
classified and measured at fair value through other
comprehensive income are held within a business
model with the objective of both holding to collect
contractual cash flows and selling.

Subsequent measurement

(I) Financial assets carried at amortised cost

A ‘financial asset’ is measured at the amortised
cost if both the following conditions are met:

(i) Business model test: The objective
is to hold the financial asset to collect
the contractual cash flows (rather
than to sell the instrument prior to its
contractual maturity to realize its fair
value changes) and;

(ii) Cash flow characteristics test: The

contractual terms of the financial asset
give rise on specific dates to cash flows
that are solely payments of principal and
interest on principal amount outstanding.

This category is most relevant to the company.
After initial measurement, such financial assets
are subsequently measured at amortized cost
using the effective interest rate (EIR) method.
Amortised cost is calculated by taking into
account any discount or premium on acquisition
and fees or costs that are an integral part of
EIR. EIR is the rate that exactly discounts
the estimated future cash receipts over the
expected life of the financial instrument or a
shorter period, where appropriate, to the gross
carrying amount of the financial asset. When
calculating the effective interest rate, the
Company estimates the expected cash flows
by considering all the contractual terms of the
financial instrument but does not consider the
expected credit losses. The EIR amortization is

included in other income in statement of profit
and loss. The losses arising from impairment
are recognized in the statement of profit and
loss. This category generally applies to trade
and other receivables.

(II) Investments in mutual funds

Investments in mutual funds are measured
at fair value through profit or loss (FVTPL).
Fair value changes on instruments measured
at FVTPL is recognised in statement of profit
and loss.

Income earned on instruments designated
at FVTPL is accrued in other income taking
into account any discount/ premium and
qualifying transaction costs being an integral
part of instrument.

De-recognition of financial assets

A financial asset (where applicable, a part of a
financial asset or part of a Company of similar
financial assets) is primarily derecognised (i.e.
removed from the Company's statement of financial
position) when:

(i) the rights to receive cash flows from the asset
have expired, or

(ii) t he Company has transferred its rights to
receive cash flows from the asset or has
assumed an obligation to pay the received cash
flows in full without material delay to a third
party under a "pass through" arrangement
and either;

• the Company has transferred substantially
all the risks and rewards of the asset, or

• the Company has neither transferred nor
retained substantially all the risks and
rewards of the asset but has transferred
control of the asset.

When the Company has transferred its rights to
receive cash flows from an asset or has entered into
a pass-through arrangement, it evaluates if and to
what extent it has retained the risks and rewards
of ownership. When it has neither transferred nor
retained substantially all of the risks and rewards of
the asset, nor transferred control of the asset, the
Company continues to recognise the transferred
asset to the extent of the Company’s continuing
involvement. In that case, the Company also
recognises an associated liability. The transferred
asset and the associated liability are measured on
a basis that reflects the rights and obligations that
the Company has retained.

Continuing involvement that takes the form of a
guarantee over the transferred asset is measured
at the lower of the original carrying amount of the
asset and the maximum amount of consideration
that the Company could be required to repay.

Impairment of financial assets

In accordance with Ind AS 109 ‘Financial
Instruments’, the Company applies expected credit
loss (ECL) model for measurement and recognition
of impairment loss for financial assets.

ECL is the weighted average of difference between
all contractual cash flows that are due to the
Company in accordance with the contract and all
the cash flows that the Company expects to receive,
discounted at the original effective interest rate,
with the respective risks of default occurring as
the weights. When estimating the cash flows, the
Company is required to consider:

a) All contractual terms of the financial assets
(including prepayment and extension) over
the expected life of the assets.

b) Cash flows from the sale of collateral held or
other credit enhancements that are integral to
the contractual terms.

Trade receivables

I n respect of trade receivables, the Company
applies the simplified approach of Ind AS 109,
which requires measurement of loss allowance
at an amount equal to lifetime expected credit
losses. Lifetime expected credit losses are
the expected credit losses that result from all
possible default events over the expected life of a
financial instrument.

Other financial assets

In respect of its other financial assets, the Company
assesses if the credit risk on those financial assets
has increased significantly since initial recognition.
If the credit risk has not increased significantly
since initial recognition, the Company measures
the loss allowance at an amount equal to 12-month
expected credit losses, else at an amount equal to
the lifetime expected credit losses.

When making this assessment, the Company uses
the change in the risk of a default occurring over
the expected life of the financial asset. To make
that assessment, the Company compares the risk
of a default occurring on the financial asset as at
the balance sheet date with the risk of a default
occurring on the financial asset as at the date of
initial recognition and considers reasonable and
supportable information, that is available without
undue cost or effort, that is indicative of significant

increases in credit risk since initial recognition. The
Company assumes that the credit risk on a financial
asset has not increased significantly since initial
recognition if the financial asset is determined to
have low credit risk at the balance sheet date.

(II) Financial liabilities:

Initial recognition and measurement

Financial liabilities are classified at initial
recognition as financial liabilities at fair
value through profit or loss, borrowings, as
appropriate payables. All financial liabilities
are recognised initially at fair value and, in the
case of borrowings and payables, net of directly
attributable transaction costs. The Company
financial liabilities include borrowings, trade
payables, security deposits, liabilities towards
services and other payables.

Subsequent measurement

Subsequent to initial recognition, the measurement
of financial liabilities depends on their classification,
as described below:

Borrowings

After initial recognition, interest-bearing borrowings
are subsequently measured at amortized cost using
the Effective interest rate method. Gains and losses
are recognized in standalone statement of profit and
loss when the liabilities are derecognised as well
as through the effective interest rate amortization
process. Amortized cost is calculated by taking into
account any discount or premium on acquisition
and fees or costs that are an integral part of the
effective interest rate. The effective interest rate
amortization is included as finance costs in the
standalone statement of profit and loss.

Trade Payables

These amounts represent liabilities for goods and
services provided to the Company prior to the end
of financial year which are unpaid. The amounts
are unsecured and are usually payable basis
varying trade term. Trade and other payables are
presented as current liabilities unless payment
is not due within 12 months after the reporting
period. They are recognized initially at fair value and
subsequently measured at amortized cost using
effective interest rate method.

De-recognition of financial liabilities

A financial liability is derecognised when the
obligation under the liability is discharged or
cancelled or expires. When an existing financial
liability is replaced by another from the same
lender on substantially different terms, or the terms

of an existing liability are substantially modified,
such an exchange or modification is treated as
the derecognition of the original liability and the
recognition of a new liability. The difference in the
respective carrying amounts is recognized in the
standalone statement of profit and loss.

Reclassification of financial assets

The Company determines classification of financial
assets and liabilities on initial recognition. After
initial recognition, no reclassification is made for
financial assets which are equity instruments
and financial liabilities. For financial assets
which are debt instruments, a reclassification
is made only if there is a change in the business
model for managing those assets. Changes to the
business model are expected to be infrequent.
The Company's senior management determines
change in the business model as a result of external
or internal changes which are significant to the
Company's operations. Such changes are evident
to external parties. A change in the business model
occurs when the Company either begins or ceases
to perform an activity that is significant to its
operations. If the Company reclassifies financial
assets, it applies the reclassification prospectively
from the reclassification date which is the first day
of the immediately next reporting period following
the change in business model. The Company does
not restate any previously recognised gains, losses
(including impairment gains or losses) or interest.
Offsetting of financial instruments

Financials assets and financial liabilities are offset
and the net amount is reported in the balance sheet
if there is a currently enforceable legal right to offset
the recognized amounts and there is an intention to
settle on a net basis, to realize the assets and settle
the liabilities simultaneously.

s) Derivative financial instruments

Initial recognition and subsequent
measurement

The Company uses forward currency contracts as
derivative financial instruments to hedge its foreign
currency risks. Derivative financial instruments
are initially recognised at fair value on the date on
which a derivative contract is entered into and are
subsequently re-measured at fair value. Derivatives
are carried as financial assets when the fair value
is positive and as financial liabilities when the fair
value is negative.

The purchase contracts that meet the definition of
a derivative under Ind AS 109 are recognised in the
standalone statement of profit and loss.

Any gains or losses arising from changes in the fair
value of derivatives are taken directly to standalone
statement of profit and loss.

t) Cash and cash equivalents

Cash and cash equivalent in the balance sheet
comprise cash at banks and cash on hand and
short-term deposits with an original maturity of
three months or less, that are readily convertible
to a known amount of cash and subject to an
insignificant risk of changes in value.

For the purpose of the standalone statement of
cash flows, cash and cash equivalents consist of
cash and short-term deposits, as defined above,
net of outstanding bank overdrafts as they are
considered an integral part of the Company’s
cash management.

u) Dividend

The Company recognizes a liability' to make the
payment of dividend to owners of equity, 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.

v) Earnings Per Share

Basic earnings per share are calculated by dividing
the net profit or loss for the year attributable to
equity shareholders by the weighted average
number of equity shares outstanding during the
period. The weighted average number of equity
shares outstanding during the year is adjusted
for events such as bonus issue, bonus element in
a rights issue, share split, and reverse share split
(consolidation of 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 year attributable
to equity shareholders and the weighted average
number of shares outstanding during the year are
adjusted for the effect of all potentially dilutive
equity shares.

w) Investment in subsidiaries

A subsidiary is an entity that is controlled by
another entity.

Impairment of investment

The Company reviews its carrying value of
investments carried at cost annually, or more
frequently when there is indication for impairment.
If the recoverable amount is less than its carrying

amount, the impairment loss is recorded in the
standalone statement of profit and loss.

When an impairment loss subsequently reverses,
the carrying amount of the Investment is increased
to the revised estimate of its recoverable amount,
so that the increased carrying amount does not
exceed the cost of the Investment. A reversal of
an impairment loss is recognised immediately in
standalone statement of profit and loss.

Investments are accounted in accordance with IND
AS 105 when they are classified as held for sale.
On disposal of investment, the difference between
its carrying amount and net disposal proceeds is
charged or credited to the standalone statement of
profit and loss.

x) Cash flow statement

Cash flows are reported using indirect method
whereby a profit before tax is adjusted for the
effects of transaction of non-cash nature and any
deferrals or accruals of past or future cash receipts
or payments. The cash flow from operating,
investing and financing activities of the Company
are segregated.

y) Segment Reporting

Operating segments are reported in a manner
consistent with the internal reporting provided to
the chief operating decision maker as defined under
Ind AS 108. Refer notes to the financial statements
for segment information presented.

z) Significant accounting judgements and
estimates

The preparation of the standalone financial
statements requires the management of
Company to make judgments, estimates and
assumptions that affect the reported amounts of
revenues, expenses, assets and liabilities, and the
accompanying disclosures, and the disclosure of
contingent liabilities.

Significant management judgements

The following are significant management
judgements in applying the accounting policies of
the Company that have the most significant effect
on the standalone financial statements.

(i) Evaluation of indicators for impairment of
assets

The evaluation of applicability of indicators
of impairment of assets requires assessment
of several external and internal factors which
could result in deterioration of recoverable
amount of the assets.

(ii) Impairment of financial assets

The impairment provisions of financial assets
are based on assumptions about risk of default
and expected loss rates. The Company uses
judgment in making these assumptions
and selecting the inputs to the impairment
calculation, based on Company's past
history, existing market conditions as well as
forward looking estimates at the end of each
reporting period.

(iii) Provisions

At each balance sheet date basis the
management judgment, changes in facts
and legal aspects, the Company assesses
the requirement of provisions against the
outstanding contingent liabilities. However,
the actual future outcome may be different
from this judgement.

(iv) Revenue from contracts with customers

The Company has applied judgements that
significantly affect the determination of the
amount and timing of revenue from contracts
with customers.

Significant estimates

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, are described
below. The Company based its assumptions
and estimates on parameters available
when the standalone 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.

(i) Impairment of Property, plant equipment,
Investment properties and CWIP

Impairment exists when the carrying value of
an asset or cash generating unit exceeds its
recoverable amount, which is the higher of its
fair value less costs of disposal and its value
in use. The value in use calculation is based
on a DCF model. The cash flows are derived
from the budgets. The recoverable amount is
sensitive to the discount rate used for the DCF
model as well as the expected future cash-
inflows and the growth rate used.

(ii) Useful lives of depreciable assets

Management reviews its estimate of the useful
lives of depreciable/ amortisable assets at
each reporting date, based on the expected
utility of the assets. Uncertainties in these
estimates relate to technical and economic
obsolescence that may change the utility
of assets.

(iii) Net realizable value of inventory

The determination of net realisable value
of inventory involves estimates based on
prevailing market conditions, current prices,
the estimated future selling price and
selling cost.

(iv) Defined benefit obligation (DBO)

Management’s estimate of the DBO is based
on a number of underlying assumptions
such as standard rates of inflation, mortality,
discount rate and anticipation of future salary
increases. Variation in these assumptions may
significantly impact the DBO amount and the
annual defined benefit expenses.

(v) Fair value measurement disclosures

Management applies valuation techniques
(including but not limited to the use of illiquidity
discount on investments) to determine the fair
value of financial instruments (where active
market quotes are not available). This involves
developing estimates and assumptions
consistent with how market participants would
price the instrument.

aa) Events after the reporting period

If the Company reviews information after the
reporting period, but prior to the date of approved
for issue, about conditions that existed at the end
of the reporting period, it assess whether the
information affects the amounts that it recognises in
its standalone financial statements. The Company
adjust the amounts recognised in its financial
statements to reflect any adjusting events after
the reporting period and update the disclosures
that relate to those conditions in light of the new
information. For non-adjusting events after the
reporting period, the Company does not change the
amounts recognised in its financial statements but
disclose the nature of the non-adjusting event and
an estimate of its financial effect, or a statement
that such an estimate cannot be made, if applicable.

bb) New and amended standards that have
an impact on the Company’s financial
statements, performance and/or disclosures.

These are certain amendments that apply for the
first time for the year ending March 31, 2026, but
do not have a material impact on the financial
statements of the Company. The Company has not
early adopted any standards or amendments that
have been issued but are not yet effective

a) Lack of exchangeability - Amendments to
Ind AS 21

The Ministry of Corporate Affairs (MCA)
notified the Companies (Indian Accounting
Standards) Amendment Rules, 2025, which
amend Ind AS 21, The Effects of Changes in
Foreign Exchange Rates to specify how an
entity should assess whether a currency is
exchangeable and how it should determine
a spot exchange rate when exchangeability
is lacking. The amendments also require
disclosure of information that enables users
of its financial statements to understand how
the currency not being exchangeable into the
other currency affects, or is expected to affect,
the entity’s financial performance, financial
position and cash flows.

The amendments are effective for annual
reporting periods beginning on or after April
01, 2025. When amendments, an entity
cannot restate comparative information.

The amendments do not have a material
impact on the Company’s standalone
financial statements.

b) Amendments to Ind AS 7 and Ind AS 107 -
Supplier Finance Arrangements

In August 2025, the MCA notified amendments
to Ind AS 7 Statement of Cash Flows and Ind
AS 107 Financial Instruments: Disclosures
to clarify the characteristics of supplier
finance arrangements and require additional
disclosure of such arrangements. The
disclosure requirements in the amendments
are intended to assist users of financial
statements in understanding the effects
of supplier finance arrangements on an
entity’s liabilities, cash flows and exposure to
liquidity risk.

The amendments are effective for annual
reporting periods beginning on or after April
01, 2025.

The amendments do not have a material
impact on the Company’s standalone
financial statements.

c) International Tax Reform—Pillar Two
Model Rules - Amendments to Ind AS 12

In August 2025, the MCA notified amendments
to Ind AS 12 Income Taxes in response to the
OECD’s BEPS Pillar Two rules and include:

• A mandatory temporary exception to the
recognition and disclosure of deferred
taxes arising from the jurisdictional
implementation of the Pillar Two model
rules; and

• Disclosure requirements for affected
entities to help users of the financial
statements better understand an entity’s
exposure to Pillar Two income taxes arising
from that legislation, particularly before its
effective date.

The mandatory temporary exception - the
use of which is required to be disclosed -
applies immediately.

The remaining disclosure requirements apply
for annual reporting periods beginning on or
after April 01, 2025.

The amendments do not have a material
impact on the Company’s standalone
financial statements.

d) Amendments to Ind AS 1 - Classification
of Liabilities as Current or Non-current and
Non-current Liabilities with Covenants

In August 2025, the MCA notified amendments
to paragraphs 69 to 76 of Ind AS 1 to
specify the requirements for classifying
liabilities as current or non-current. The
amendments clarify:

• What is meant by a right to defer settlement

• That a right to defer must exist at the end of
the reporting period

• That classification is unaffected by the
likelihood that an entity will exercise its
deferral right

• That only if an embedded derivative in
a convertible liability is itself an equity
instrument would the terms of a liability not
impact its classification.

In addition, a requirement has been introduced
to require disclosure when a liability arising
from a loan agreement is classified as
non- current and the entity’s right to defer
settlement is contingent on compliance with
future covenants within twelve months.

If there is a breach of a material covenant of a
long term loan arrangement on or before the
end of the reporting period, resulting in the
liability becoming payable on demand as at the
reporting date, and the lender agrees—after
the reporting period but before the financial
statements are approved for issue—not to
demand repayment for at least 12 months
as a consequence of the breach, this shall be
treated as an adjusting event. Accordingly, the
entity is not required to classify the liability
as current.

The amendments are effective for annual
reporting periods beginning on or after April
01, 2025 retrospectively in accordance with
Ind AS 8.

The amendments do not have a material
impact on the Company’s standalone
financial statements.

cc) Standards issued but not yet effective

(i) Amendments to Ind AS 1 - Classification
of liabilities as current or non-current and
non-current liabilities with covenants

In accordance with Ind AS 1 currently
applicable, breach of an immaterial covenant

is ignored deciding in current vs non-current
classification of liabilities. Also, in case of
breach of a material covenant of a non-current
loan on or before the reporting date, the entity
can obtain waiver from the lender after the
reporting date and continue to classify the loan
as non-current liability. In accordance with
changes to Ind AS 1 already notified by the
MCA, the above relaxations to classify loan as
non-current liability will not be available from
FY 2026-27 onward and need to be applied
retrospectively. Consequently:

• A breach of either material or immaterial
covenant will trigger current classification
of liability.

• To continue classifying loan as non¬
current liability, entities will need to obtain
waiver from the breach on or before the
reporting date.

The Company is currently assessing the impact
theamendmentswillhaveonitsfinancialstatements

(b) Refer note 21 and 25 for capital work in progress pledged/ hypothecated as security for borrowing taken by the company.

(c) Refer note 41(B) for disclosure of capital commitments for the acquisition of property, plant and equipment.

(d) There is no project whose completion is overdue or has exceeded its cost as compared to its original budgeted cost.

(e) The Company has started capitalisation of new production line and a specific borrowing was availed by the Company for
such purpose. The project is expected to be completed by second half of FY 26-27 of FY 26-27. The amount of borrowing
cost capitalised during the year is f 14.25 lakh (March 31, 2025: f 23.65 lakh). The rate of borrowing used for capitalisation
of borrowing cost is 6.86% - 8.06% (March 31, 2025: 8.00% - 8.30% ).

(a) Investment property represents building located in Noida constructed on leasehold land.

(b) No borrowing cost is capitalised in the current and previous year.

(c) Refer note 21 and 25 for investment property pledged/ hypothecated as security for borrowing taken by the company.

(d) Refer note 41(B) for disclosure of capital commitments for the acquisition of investment property.

(e) The lease deeds of all immovable properties comprising of building constructed on leasehold land is held in the name of
the Company as at March 31, 2026 and March 31, 2025.

(f) The Company has elected to continue with the carrying value of investment property recognised as on April 01, 2016
measured as per the previous GAAP and use that carrying value as its deemed cost as of transition date.

(g) Information regarding income and expenditure of investment properties

(i) The fair value of investment properties has been determined by external independent registered property valuer as defined

under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017 having appropriate recognised professional
qualification and experience in location and category of the property being valued in conjunction with valuer assessment
services undertaken by approved valuer.

The Company obtain independent valuation for its investment property at least annually and the fair value measurement
is categorised as level 3 measurement in the fair value hierarchy. The valuation is arrived using cost approach.

The main inputs used for valuation are nature of structure, life of structure, quality of maintenance, location of structure,
present and future expected use etc.

(a) Refer note 21 and 25 for intangible assets pledged/ hypothecated as security for borrowing taken by the company.

(b) Refer note 41(B) for disclosure of capital commitments for the acquisition of intangible assets.

(c) There are no restrictions over the title of the Company’s intangible assets, nor are any intangible assets pledged as security
for liabilities.

(d) On transition to Ind AS (i.e. April 01, 2016), the Company has elected to continue with the carrying value of all intangible
assets measured as per the previous GAAP and use that carrying value as the deemed cost of intangible assets.

(e) There is no revaluation of intangible assets during the current year and previous year.

(i) f 1.43 lakh (March 31, 2025 : f 1.33 lakh) represents the amount pledged with government authorities.

(ii) During the previous year, the Company has incurred a loss due to a flood at one of its plants consequent to which it
has recorded a loss of f1,021.93 lakh net off recovery from sale of scrap. The Company had received f 950.00 lakh as
interim settlement amount. In the current year, the holding company has received an additional amounting to f 251.07
lakh towards final settlement of the insurance claim. Accordingly, the Company has recognised income of f 178.18 lakh
as miscellaneous income in the statement of profit and loss.

(iii) Security deposits include due from related parties amounting to Nil (March 31, 2025: f 20.25 lakh) [refer to note 47].

(iv) Others include rent receivable from related parties amounting to f 34.77 lakh (March 31, 2025: f 14.74 lakh) [refer to
note 47].

(v) The Company has not given any advances to directors or other officers of the Company or any of them either severally or
jointly with any other persons or advances to firms or private companies respectively in which any director is a partner or
a director or a member.

(vi) For terms and conditions and the balance recoverable from related parties. Refer to Note 47

(vii) Terms/ rights attached to equity shares

The company has only one class of equity share capital having par value of f 10/- per share (March 31, 2025: f 10/-
per share). Each shareholder is entitled to one vote per share held. The company declares and pays dividend in Indian
rupees (f). The dividend proposed by the Board of Directors is subject to the approval of shareholders in ensuing Annual
General Meeting.

In the event of liquidation of the company, the equity shareholders will be entitled to receive remaining assets of the
company after distribution of all preferential amount. The distribution will be in proportion to the number of equity shares
held by the shareholders.

During the last five years, the company has not made any bonus issue or issued any shares for consideration other than
in cash.

(a) Share warrants forfeited account shall be utilized as per provisions of Companies Act, 2013.

(b) Capital redemption reserve has been created upon buy back of shares effected during financial year 2020-21. Subject
to the provisions of Act, it can be utilised to issue fully-paid bonus shares to the members of the Company.

(c) Under the erstwhile Companies Act 1956, general reserve was created through an annual transfer of net income at a
specified percentage in accordance with applicable regulations. The purpose of these transfers was to ensure that if a
dividend distribution in a given year is more than 10% of the paid-up capital of the Company for that year, then the total
dividend distribution is less than the total distributable results for that year. Consequent to introduction of Companies
Act 2013, the requirement to mandatorily transfer a specified percentage of the net profit to general reserve has been
withdrawn. However, the amount previously transferred to the general reserve can be utilised only in accordance with
the specific requirements of Companies Act, 2013.

(d) Retained earnings represents undistributed profit of the company which can be distributed to its equity shareholders in
accordance with requirements of Companies Act, 2013. Retained earnings include re-measurement loss/(gain) on defined
benefit plans, net of taxes that will not be reclassified to statement of profit and loss.

(a) Term loan of non-current f 7,000.00 lakh and current f 2,000.00 lakh (March 31, 2025: non-current f 5,500.00 lakh and
current f 1,000.00 lakh) is secured by way of exclusive charge on all movable fixed assets at bazpur plant both present
and future. The outstanding amount (including current maturities) is repayable in 18 quarterly instalments starting from
June 2026 (March 31, 2025: Repayable in 20 quarterly instalments starting from December 2025).

(b) Term loan of non-current f 2,980.77 lakh and current f 119.23 lakh (March 31, 2025: non current Nil and current Nil)
is secured by way of first pari pasu charge on negative lien on immovable fixed asset of bazpur plant and first pari pasu
charge exclusive on movable fixed asset of the bazpur plant. The outstanding amount (including current maturities) is
repayable in 26 quarterly instalments starting from March 2027 (March 31, 2025: Nil).

(c) The Company's total borrowing from banks carries an interest rate of 6.86% to 8.06% (March 31, 2025: 8.00% to 9.00%)

(d) Borrowings contain certain debt covenants relating to total liabilities to total net worth, current ratio, debt service coverage
ratio. The company has satisfied all debt covenants prescribed as per term of respective term loan agreements.

(e) The Company has not made any default in the repayment of loans to banks including interest thereon.

(i) Working capital demand loan in foreign currency as on March 31, 2026: Nil (March 31, 2025: 2,225.38 lakh) is secured
against entire current assets of the Company both present and future. The tenure of these facility is for a maximum period
of 180 days. Interest rate range from SOFR spread of 50-150 bps (March 31, 2025: SOFR spread of 50-150 bps).

(ii) Working capital demand loan in Indian Rupee of ^ 4,200.00 lakh (March 31, 2025: Rs. Nil) is secured by first pari-passu
charge by way of hypothecation of entire current assets of the company, both present and future. The tenure of the facility
is for a maximum period of 90 days. Interest rate ranges from 6.35% to 6.55% (March 31,2025: Nil)

(iii) Working capital demand loan in Indian Rupee of ^ 7,700.00 lakh (March 31, 2025: ^ 4,100.00 lakh) is unsecured, and
repayable on demand. The tenure of the facility is for a maximum period of 180 days. Interest rate ranges from 6.21% to
7.68% (March 31, 2025: 7.50% to 9.75%).

(iv) Borrowing contain certain debt covenants relating to total liabilities to total net worth, current ratio, debt service coverage
ratio. The company has satisfied all debt covenants prescribed as per term of respective term loan documents.

(v) Refer Note 41 (C) for undrawn committed borrowing facility available for future operating activities and to settle
capital commitments.

(vi) The Company has not made any default in the repayment of loans to banks including interest thereon.

(vii) Quarterly returns on statement of current assets w.r.t. trade receivable, trade payable and inventories filed by the company
with banks are in agreement with the books of accounts.

(ii) The trade payables are unsecured and non interest-bearing and are usually on varying trade term with ranges from 0 to
90 days.

(iii) Trade Payables include due to related parties amounting to f 115.43 lakh (March 31, 2025: f 2.38 lakh) [refer to note 47].

(iv) For terms and conditions with related parties [refer to note 47].

(v) Trade payable includes unbilled dues amounting to f 833.28 lakh (March 31, 2025: f 954.40 lakh) included under "Not
due" category.

(vi) Information as required to be furnished as per section 22 of the Micro, Small and Medium Enterprises Development Act,
2006 (MSMED Act) for the year ended March 31, 2026 is given below. This information has been determined to the extent
such parties have been identified on the basis of information available with the Company.

(a) Trade receivable represents the amount of consideration in exchange for goods or services transferred to the customers
that is unconditional.

(b) The Company has entered into the agreement with customers for sales of goods. Contract liabilities arises in respect of
contracts where the Company has obligation to deliver the goods for which the Company has received consideration in
advance. Contract liabilities are recognised as revenue when the Company performs obligation under the contract (i.e.
transfers control of the related goods to the customer). There is increase in contract liabilities during the year mainly due
to the amount collected in the current year for which performance obligation is yet to be satisfied.

(c) Performance obligations:

Performance obligation in respect of sale of goods is satisfied when control of the goods is transferred to the customer,
generally on delivery of the goods (i.e. Inco terms) and payment is generally due as per the terms of contract with customers.

40 Earnings per share (EPS)

Basic EPS amounts are calculated by dividing the profit for the year attributable to the owners of the Company by the weighted
average number of equity share outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit for the year attributable to the owners of the Company by the weighted
average number of equity share outstanding during the year plus weighted average number of equity shares that would be
issued on conversion of all the dilutive potential equity shares into equity shares. However, there are no dilutive potential
equity shares.

Notes:

(i) f 21.65 (March 31, 2025: f 21.65 lakh) represent demand for AY 2013-14 by the assessing officer. The Company has
contested the demand and has paid a deposit under protect of f 5.50 lakh (March 31, 2025: f 5.50 lakh).

Based on management assessment and discussion with legal consultant the management is confident that the demand
is not sustainable and accordingly no provision is required to be made in this regard.

(ii) There are various disputes pending with GST and sales tax authorities. The Company is contesting the demand raised by
the authorities. Based on management's assessment and grounds of appeal, the management believes that there is strong
likelihood of succeeding before the various authorities. Accordingly, no adjustments have been made in the standalone
financial statements, pending the final resolution of these matters.

(iii) There are few labour law related matters which are pending before various forums. Based on management’s assessment
and legal advice, the Company believes that there is strong likelihood of favourable outcome in these cases. Accordingly,
no provision has been considered necessary in respect of these matters.

(C) Undrawn committed borrowing facility

The company has f 29,600.00 lakh (March 31, 2025: f 17,374.62 lakh) of working capital loan facility and f 32,478.80
lakh (March 31, 2025: f 3,500.00 lakh) of term loan facility remains undrawn.

(D) Refer note 52 for lease commitments.

(E) Letter of credit

The Company has availed letter of credit facilities amounting to f19,513.15 lakh as of the reporting date (March 31, 2025:
Nil).

42 Corporate Social Responsibility

As per provisions of section 135 of the Companies Act, 2013, the Company has to incur at least 2% of average net profits of
the preceding three financial years towards Corporate Social Responsibility ("CSR"). Accordingly, a CSR committee has been
formed for carrying out CSR activities as per the Schedule VII of the Companies Act, 2013. Details are as below:

(i) CSR amount has been incurred for promoting education, art and culture, promoting health care including preventive health
care and other diversified projects as approved in schedule VII of the Companies Act, 2013.

(j) Subsequent to the year end, pursuant to Companies (CSR Policy) amendment rules, the unspent CSR amount f 59.01
lakh (March 31, 2025: f 71.40 lakh) has been deposited in separate bank account.

(k) During the current year, the Company has contributed f 238.00 lakh (March 31, 2025: f 450.00 lakh) to Rekhta Foundation
("the Trust") towards ongoing projects undertaken by the Trust. Out of the current year’s contribution, f 238.00 lakh has
been utilized for the specified project-related activities. As of the reporting date, there is no unspent CSR amount (March
31, 2025: fNil) with the trust.

43 Segment information

As per Ind AS - 108, operating segment have been defined based on review by chief operating decision maker (CODM) to
assess the performance and make decision about allocation of resources to each segment. The Company business activities
falls within single primary business segment viz, manufacturing of "Polymeric films". Accordingly, disclosure under Ind AS 108,
operating segments are not required in these standalone financial statements.

Notes:

(i) Capital expenditure consists of additions of property, plant and equipment, investment property and capital work in
progress net of capitalisation from previous year.

(ii) During the current year, no customer accounted for 10% or more of the Company's total revenue (March 31, 2025: one
customer accounted for 12.13% of the Company's total revenue).

(iii) Non-current operating assets consist of property, plant and equipment, capital work in progress, investment property,
right of use assets, non-current financial assets and other non-current assets.

Notes:

(i) These financial statement are separate financial statements prepared in accordance with Ind AS-27 " Separate Financial
Statements".

(ii) The company has accounted for investment in the above entities at cost less impairment loss, if any.

(iii) The Company holds 51% (March 31, 2025: 51%) shares in the subsidiary company namely "Polyplex (Thailand) Public
Company Limited" out of which 17.19% (March 31, 2025: 17.19%) shareholding is held by the Company directly and
balance 33.81% (March 31, 2025: 33.81%) shares are held by the Company through its subsidiary company namely
"Polyplex (Asia) PTE. Limited".

46 Employee benefit obligations

Disclosures pursuant to Ind AS - 19 "Employee Benefits" (notified under the section 133 of the Companies Act 2013 (the Act)

read with Companies (Indian Accounting Standards) Rule 2015 (as amended from time to time) and other relevant provision

of the Act) are given below :

(A) Defined benefit plan

The Company operates following defined benefit obligations:

(a) Gratuity: The employees' gratuity fund scheme, which is a defined benefit plan, maintains its investments with Life
Insurance Corporation of India (LIC). The Company provides for gratuity for employees in India as per the new labour code
(Code of Social Security, 2020). Employees who are in continuous service for a period of 5 years are eligible for gratuity.
The amount of gratuity payable on retirement/termination is the employees last drawn wages computed proportionately
for 15 days wages multiplied for the number of years of 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 following tables summaries the components of net benefit expense recognised in the statement of profit and loss
and the funded status and amounts recognised in the balance sheet:

(x) The plan assets are maintained with Life Insurance Corporation of India (LIC).

(xi) Discount rate is based on the prevailing market yields of Indian Government securities as at the balance sheet date for
the estimated term of the obligations.

(xii) Enterprise best estimate of contribution during the next year is Nil (March 31, 2025: f 200.00 lakh).

(xiii) The sensitivity analyses above have been determined based on a method that extrapolates the impact on defined benefit
obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period while holding
all other assumptions constraint. In practice it is unlikely to occur and change in some of the assumption 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 as when calculating the defined benefit liability recognised in the balance sheet.

(xiv) The weighted average duration of defined benefit plan obligation at the end of each reporting period is 7.48 years (March
31, 2025: 7.59 years).

(xv) The estimates of rate of escalation in salary considered in actuarial valuation are after taking into account inflation,
seniority, promotion and other relevant factors including supply and demand in the employment market. The above
information is as certified by the Actuary.

(xvi) The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the
prior period.

(xvii) Risks associated with plan provisions

The Company is exposed to number of risks in the defined benefit plans. Most significant risks pertaining to defined benefit
plans and management’s estimation of the impact of these risks are as follows:

Salary growth risk

The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants.
An increase in the salary of the plan participants will increase the plan liability.

Interest rate risk

A decrease in interest rate in future years will increase the plan liability.

Life expectancy risk

The present value of the defined benefit plan liability is calculated by reference to the best estimate of mortality of plan
participants both during and at the end of the employment. An increase in the life expectancy of the plan participants will
increase the plan liability.

Withdrawals risk

Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at subsequent
valuations can impact the plan liability.

(B) Defined contribution plan

Following are the contribution to defined contribution plan, recognised as expense for the year:

(a) The transactions with related parties are made on terms equivalent to those that prevail in arm’s length transactions.
Outstanding balances at the year-end are unsecured and interest free. The settlement for these balances occurs through
payment. The Company has not recorded any impairment of receivables relating to amounts owed by related parties
for the year ended March 31, 2026 (March 31, 2025: Nil). This assessment is undertaken each financial year through
examining the financial position of the related party and the market in which the related party operates.

(b) Terms and conditions related to material transactions are as below:

(i) Revenue from sale / purchase of products and services

Transactions of sales /purchase of products and services with related parties are entered into on the same terms
as applicable to third parties in an arm’s length transaction and in the ordinary course of business. The Company
mutually negotiates and agrees consideration and payment terms with the related parties by benchmarking the same
to transactions with non-related parties, who purchase/sale product and services of the Company in similar terms

(ii) Rental income from investment property

The Company has leased its investment property to a related party in the ordinary course of business and on an
arm’s length basis. The rental and other terms of the arrangement are consistent with prevailing market conditions
for comparable properties. The managment also obtained a benchmarking study during the current year from an
independent valuer and hence ensure that lease rentals are in line with such valuation.

(iii) Purchases of property, plant and equipment

Purchases of property, plant and equipment are made from related parties on the same terms as applicable to third
parties in an arm’s length transaction. The Company mutually negotiates and agrees price and payment terms with
the related parties by benchmarking the similar transaction from non-related parties.

(iv) Outstanding balance from / to related parties

Outstanding balances at the year-end are unsecured and interest free. The settlement for these balances occurs
through payment. The Company has not recorded any impairment of receivables relating to amounts owed by related
parties for the year ended March 31, 2026 (March 31, 2025: Nil). This assessment is undertaken each financial year
through examining the financial position of the related party and the market in which the related party operates.

(a) As at March 31, 2026, the Company has not granted any loans to the promoters, directors, KMPs and the related
parties (as defined under Companies Act, 2013), either severally or jointly with any other person (March 31, 2025:
Nil).

(b) All the liabilities for post retirement benefits being ‘Gratuity and compensated absence’ are provided on actuarial
basis for the Company as a whole, accordingly the amount pertaining to Key management personnel are not
included above.

48 Fair value measurements

Set out below, is a comparison by class of the carrying amounts and fair value of the Company’s financial instruments

apart from investment in subsidiary, which are carried at cost in accordance with Ind AS 27.

Valuation Techniques

The fair value of the financial assets and liabilities is 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 value:

(i) The fair values of the Company’s interest-bearing borrowings are determined by using effective interest rate (EIR) method
using discount rate that reflects the issuer’s borrowing rate as at the end of the reporting period. The own non-performance
risk as at March 31, 2026 was assessed to be insignificant.

(ii) Long-term receivables/payables are evaluated by the Company based on parameters such as interest rates, risk factors,
individual creditworthiness of the counterparty and the risk characteristics of the financed project. Based on this
evaluation, allowances are taken into account for the expected credit losses of these receivables.

(iii) The carrying value of financial assets and financial liabilities measured at amortised cost in financial statement are a
reasonable approximation of their fair value since the Company does not anticipate that the carrying amount would be
significantly different from the values that would be entitled to received or settled.

(iv) The fair values of the investment in mutual fund has been determined based on net assets value (NAV) available in open
market and are level-1 instruments.

(v) The Company has entered into derivative financial instruments with banks comprising of forward exchange contract,
valued at mark to market using valuation techniques which employs the use of market observable inputs. As at year end,
the mark-to-market value of these forward contract is based on confirmation from bank and is net of a credit valuation
adjustment attributable to derivative counterparty default risk. The changes in counterparty credit risk had no material
effect on the financial instruments recognised at fair value.

(vi) Investments in equity shares of subsidiary are measured at cost as per Ind AS 27, "Separate financial statements" and
are not required to be disclosed here.

(vii) Fair value hierarchy

Level 1: The fair value of financial instruments traded in active markets (such as publicly traded derivatives and equity
securities) is based on quoted market prices at the end of the reporting period for identical assets or liabilities. The mutual
funds are valued using the net assets value (NAV) available in open market. The quoted market price used for financial
assets held by the Company is the current bid price. These instruments are included in level 1.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-
the-counter derivatives) 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: If one or more of the significant inputs is not based on observable market data, the instrument is included in level
3. This is the case for unlisted equity securities, contingent consideration and indemnification asset included in level 3.

There are no transfers among levels 1, 2 and 3 during the year.

49 Foreign exchange forward contracts

The Company has entered into foreign exchange forward contracts with the intention of reducing the foreign exchange risk
of foreign currency receivables and payables and are entered into for periods consistent with foreign currency exposure
of the underlying transactions. These contracts are not designated in hedge relationships and are measured at fair value
through profit and loss.

50 Financial risk management objectives and policies

The Company, being a manufacturer of polymeric films, is exposed to various market risks, credit risks and liquidity risks. The
Company’s Risk Management Committee (RMC) and Board of Directors have the overall responsibility for establishing and
overseeing the Company’s risk management framework.

The RMC comprises four directors, including two independent directors. It periodically reviews operational, financial, strategic
risks and their mitigating factors. The Committee has formulated a comprehensive risk management policy that outlines the
framework designed to minimize the impact of uncertainty on the business. The primary objective of this policy is to ensure
sustainable business growth with stability and to promote a proactive approach toward identifying, evaluating, reporting and
resolving risks associated with the Company’s operations. This process provides assurance that the Company’s financial
risk-taking activities are governed by appropriate policies and procedures and that financial risks are identified, measured
and managed in accordance with Company policies and risk objectives. Through regular training, management standards and
procedures, the Company aims to maintain a disciplined and constructive control environment where all employees understand
their roles and obligations related to risk management.

The Risk Management Committee is supported in its oversight role by the chief risk officer and the risk management team. The
RMC undertakes both regular and ad hoc reviews of risk management controls and procedures. The results of these reviews
are reported to the Board of Directors.

Below notes explain the sources of risks in which the Company is exposed to and how it manages the risks.

(a) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes
in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such
as commodity risk. Financial instruments affected by market risk include deposits, investments and foreign currency
receivables, payables and derivative financial instruments. The sensitivity analysis in the following sections relate to the
position as at reporting date. The analysis exclude the impact of movements in market variables on: the carrying values
of gratuity and other post-retirement obligations, provisions and the non-financial assets and liabilities. The sensitivity
of the relevant profit and loss item and equity is the effect of the assumed changes in the respective market risks. This is
based on the financial assets and financial liabilities held as of March 31, 2026 and March 31, 2025.

(i) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes
in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates also relates to
the Company’s operating activities (when revenue or expense is denominated in foreign currency). The Company
manages its foreign currency risk partly by taking forward exchange contract for transactions of sales and purchases
and partly balanced by purchasing of goods/services from the respective countries. The Company evaluates exchange
rate exposure arising from foreign currency transactions and follows established risk management policies.

The Company's exposure to foreign currency risk at the end of the reporting periods are as follows

Foreign currency risk sensitivity

The following tables demonstrate the sensitivity to a reasonably possible change in currency exchange rates, with
all other variables held constant. The impact on the Company profit before tax and equity is due to changes in the
fair value of monetary assets and liabilities as given below:

(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 main interest rate risk arises from long-term borrowings and
working capital. The risk is managed by the Company by maintaining an appropriate mix between fixed and floating
rate borrowings. The Company optimises the interest rate risk by regularly monitory the interest rate in the best
interest of the Company. The Company has following fixed rate and floating interest rate on long term borrowing:

The assumed movement in basis points and interest rate sensitivity is based on currently observable
market environment.

(iii) Commodity price risks

The main raw materials which company procures are PTA, MEG and homopolymer and their prices are to a great
extent linked to the movement of crude prices directly or indirectly and any adverse fluctuation in the raw material
cost can impact the Company’s operating margins depending upon the ability of the Company to pass on the increase
in costs to its customers. As selling prices are regular negotiated / adjustment of sale prices on the basis of changes
in commodity prices. The Company is not significantly impacted by commodity price risk.

(b) Liquidity Risk

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. The Company manages the liquidity risk by maintaining adequate funds in cash and cash
equivalents or adequate sources of financing through the use of short term loans and cash credit facility. Processes
and policies related to such risks are overseen by senior management. Management monitors the Company’s liquidity
position through rolling forecasts on the basis of expected cash flows. The Company assessed the concentration of risk
with respect to its debt and concluded it to be low.

(c) 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 towards the Company. The Company is exposed to credit risk from its operating activities (primarily
trade receivables) and from its financing activities including foreign exchange transaction and other financial instrument.
The maximum amount of the credit exposure is equal to the carrying amounts of these receivables. Management has a
credit policy in place and the exposure to credit risk is monitored on an ongoing basis. The company only deals with parties
which has good credit rating/worthiness given by external rating agencies or based on company's past assessment.

(i) Trade receivables

The Company extends credit to customers in normal course of business. The Company considers factors such as
credit track record in the market and past dealings for extension of credit to customers. The Company has developed
guidelines for the management of credit risk from trade receivables. All customer are subjected to credit assessments
as a precautionary measure, and the adherence of all customers to collection due dates is monitored on an on-going
basis, thereby practically eliminating the risk of default.

For certain customers, the Company has obtained credit guarantee insurance, which covers up to 95% of the credit
risk on outstanding balances, subject to the limits specified in the insurance policy. As a result, the Company’s
exposure to credit risk on these receivables is significantly mitigated. Additionally, the Company's trade receivables
are diversified across a wide base of customers operating in various industries and geographies, thereby eliminating
any significant concentration of credit risk.

The Company’s established policy, procedures and control relating to customer credit risk management. An
impairment analysis is performed at each reporting date on trade receivables by lifetime expected credit loss method
based on provision matrix. The provision rates are based on days past due for grouping at customers with similar
loss patterns. The calculation reflects the probability weightage outcome, the time value of money and reasonable
and supporting information that is available at the reporting date about the past events, current condition and future
forecast. The Company does not hold collateral as security. 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.

(ii) Financial instruments and deposits

Credit risk from balances with banks is managed by the Company’s treasury department in accordance with the
Company’s policy. Investments of surplus funds are made in bank deposits and mutual funds. The limits are set to
minimize the concentration of risks and therefore mitigate financial loss through counterparty’s potential failure to
make payments. The Company’s maximum exposure to credit risk for the components of the balance sheet at March
31, 2026 and March 31, 2025 is the carrying amounts.

The Company has deposited liquid funds at various banking institutions. No impairment loss is considered necessary
in respect of these fixed deposits that are with recognised commercial banks and are not past due over past years.
Trade receivables and other financial assets are written off when there is no reasonable expectation of recovery, such
as debtor failing to engage in the repayment plan with the Company. The Company’s maximum exposure relating to
financial instrument is noted in table below:

51 Capital management

For the purposes of Company's capital management, capital includes issued equity share capital, securities premium and
all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company's capital
management is to ensure that it maintains an efficient capital structure and maximize shareholder value. The Company
manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the
financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders
or issue new shares. The Company monitors capital using net debt to equity. The Company aims to maintain an optimal capital
structure to reduce the cost of capital.

Note:

In order to achieve the overall objective, the Company's capital management, amongst the other things, aim is to ensure that it
meets the financial covenant attached to interest bearing loan and borrowing that define the capital structure requirement. There
have been no breaches in the financial covenant of any interest bearing loan and borrowing in the current and previous year.

No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, 2026
and March 31, 2025.

52 Right of use assets and lease liabilities
(A) Company as a lessee

(i) Right of use assets: The Company’s lease assets primarily comprise leasehold land taken on lease for its corporate
office and plant facilities. These leases have terms ranging from 13 to 90 years. The Company records lease liability at
the present value of remaining lease payments discounted at incremental rate of borrowing and has recognised right of
use assets equal to lease liability adjusted for any prepayments.

In addition, the Company has entered into certain lease agreements with lease terms of 12 months or less. The Company
has elected to apply the short-term lease recognition exemption for these leases and, accordingly, does not recognize
lease liabilities or right-of-use assets for such leases. Lease payments associated with these short-term leases are
recognized as an expense on a straight-line basis over the lease term.

(ix) The Company's total cash outflow for leases during the year is f 180.46 lakh (March 31, 2025: f 165.72 lakh).

(x) The Company does not have any outstanding lease restrictions and commitment towards variable rent as per the contract.
Also, the Company does not have lease term extension options which not reflect in measurement of lease liabilities.

(B) Company as a lessor

(i) The Company has leased out office space. These leases are for a period of one year or less. The total lease rental
recognised during the year is f 377.04 lakh (March 31, 2025: f 314.84 lakh).

(ii) The Company has managed risk associated with the right in leased assets given by incorporating covenants in agreement
like indemnification of occurrence of losses due to action of the lessee.

(iii) Since assets given under the lease agreement to the lessee are short term, accordingly disclosure of maturity profile is
not applicable.

Notes:

(i) Borrowings includes long term borrowings, short term borrowings and lease liabilities

(ii) Earning for Debt Service = Net Profit after taxes Depreciation and amortizations Finance cost Loss/(gain) on sale of
property, plant and equipment Property, plant and equipment written off

(iii) Debt service = Interest and Lease Payments Principal Repayments

(iv) Average shareholder's equity = [(Total opening equity Total closing equity)/ 2]

(v) Average inventory = [(Total opening inventory Total closing inventory)/ 2]

(vi) Average Trade receivable = [(Total opening trade receivables Total closing trade receivables)/ 2]

(vii) Average Trade Payable = [(Total opening trade payable Total closing trade payable)/ 2]

(viii) EBIT = Profit before exceptional item and tax finance cost

(ix) Capital Employed = Tangible net worth Total borrowings - Deferred tax asset

(x) Average investment= [(Opening investments Closing investments)/ 2]

(xi) Income generated from investments = Dividend income from subsidiary net gain on sale of investment measured at
fair value through profit and loss

54 Other statutory information

(i) The company does not have any Benami Property where any proceedings have been initiated or are pending against the
Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules
made thereunder.

(ii) The Company has not been declared wilful defaulter by any bank or financial institution or other lender or government or
any government authority.

(iii) The Company has no balance and transactions with companies struck off under section 248 of Companies Act, 2013 or
section 560 of Companies Act, 1956, except for the following balances with struck-off entities:

(iv) The Company has complied with the number of layers prescribed under section 2(87) of the Companies Act, 2013 read
with the Companies (Restriction on number of layers) Rules, 2017.

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

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

b. provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

The Company has not received any fund from any person or entity, including foreign entities (Funding Party) with the
understanding (whether recorded in writing or otherwise) that the 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

(vi) 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 provision of the Income Tax Act, 1961).

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

(viii) 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.

(x) The borrowings obtained by the Company from banks have been applied for the purposes for which such loans were taken
and the Company has not used funds raised on short term basis for long term purpose.

55 The Company has established a comprehensive system of maintenance of information and documents as required by
the transfer pricing legislation under section 92-92F of the Income Tax Act, 1961. Since the law requires existence of
such information and documentation to be contemporaneous in nature, the Company is in the process of updating the
documentation for the transactions entered into with the associated enterprises during the financial year and expects
such records to be in existence latest by due date as required under the law. The management is of the opinion that its
transactions with the associated enterprises are at arm’s length so that the aforesaid legislation will not have any impact
on the financial statements, particularly on the amount of tax expense and that of provision for income tax.

56 The Company has maintained its books of accounts in accounting software (SAP), which has a feature of recording audit
trail (edit logs) facility which was enabled through out the year for all the relevant transactions recorded in such software.
However, audit logs with respect to privileged/ administrative access rights and also at database level were not enabled
due to various system limitations and performance issues. Consequently, the Company was not able to maintain and
preserve audit trail in compliance with the requirement of proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014.

57 On November 21, 2025, the Government of India notified four new 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. The Ministry of Labour and employment published draft central rules
and FAQs to enable assessment of the financial impact due to changes in regulations. The Company has assessed that
there is no material impact due to changes in these regulations to the standalone financial statement for the year ended
March 31, 2026. The Company continues to monitor the finalisation of Central/State Rules and clarifications from the
Government on other aspects of the labour codes and would provide appropriate accounting effect as and when such
clarifications are notified.

58 During the current year, the company has executed a share purchase agreement (SPA) dated March 25, 2026, for acquisition
of 51% of the equity share capital of TechNova Printrite Products Private Limited ("TechNova Printrite"). Pursuant to SPA,
the Company subscribed to the share capital of TechNova Printrite on April 30, 2026, amounting to ~?6,209.75 lakh, also
subject to closing adjustments. Since, the investment is made subsequent to reporting date, hence there is no impact of
the acquisition on standalone financial statement.

59 The figures for the corresponding previous year have been regrouped/ reclassified, wherever considered necessary, to
make them comparable with current year classification.