(o) Provisions

Provisions are recognized when the Company has a present
obligation (legal or constructive) as a result of a past event,
it is probable that an outflow of resources embodying
economic benefits will be required to settle the obligation
and a reliable estimate can be made of the amount of
the obligation. When the Company expects some or
all of a provision to be reimbursed, the reimbursement
is recognized as a separate asset, but only when the
reimbursement is virtually certain. The expense relating
to a provision is presented in the standalone statement of
profit and loss, net of any reimbursement.

If the effect of the time value of money is material,
provisions are discounted using a current pre-tax rate that
reflects, when appropriate, the risks specific to the liability.
When discounting is used, the increase in the provision
due to the passage of time is recognized as a finance cost.

Provision for warranty is recognized based on the historical
experience and future estimate claims by the management.
The estimate of such warranty related costs is revised
annually.

(p) Retirement and other employee benefits

Retirement benefit in the form of provident fund and
employee state insurance are defined contribution
schemes. The Company has no obligation, other than the
contribution payable to the provident fund and employee
state insurance. The Company recognizes contribution
payable to the provident fund and employee state insurance
scheme as an expense, when an employee renders the
related service. If the contribution payable to the scheme
for service received before the balance sheet date exceeds
the contribution already paid, the deficit payable to the
scheme is recognized as a liability after deducting the
contribution already paid. If the contribution already paid
exceeds the contribution due for services received before
the balance sheet date, then excess is recognized as an
asset to the extent that the pre-payment will lead to a
reduction in future payment or a cash refund.

The Company operates a defined benefit gratuity plan
in India, which requires contributions to be made to a
separately administered fund i.e. Employee’s Company
Gratuity cum Life Assurance Scheme of Life Insurance
Corporation of India. The cost of providing benefits under
the defined benefit plan is determined using the projected
unit credit method. Re-measurements, 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 standalone balance sheet with a corresponding
debit or credit to retained earnings through OCI in the
period in which they occur. Re-measurements are not
reclassified to the standalone statement of profit or loss in
subsequent periods.

Net interest is calculated by applying the discount rate
to the net defined benefit liability or asset. The Company
recognizes changes in the net defined benefit obligation
which includes service costs comprising current service
costs, past-service costs, gains and losses on curtailments
and non-routine settlements; and net interest expense or
income, as an expense in the standalone statement of
profit and loss.

Accumulated leave, which is expected to be utilized within
the next twelve months, is treated as short-term employee
benefit. The Company measures the expected cost of such
absences as the additional amount that it expects to pay as
a result of the unused entitlement that has accumulated at
the reporting date. The Company treats accumulated leave
expected to be carried forward beyond twelve months, as
long-term employee benefit for measurement purposes.
Such long-term compensated absences are provided for
based on the actuarial valuation using the projected unit
credit method at the year-end. The Company presents the
leave as a current liability in the standalone balance sheet,
to the extent it does not have an unconditional right to
defer its settlement for twelve months after the reporting
date. Where the Company has the unconditional legal
and contractual right to defer the settlement for a period
beyond twelve months, the same is presented as non¬
current liability.

(q) Share-based payment (Employee Stock Appreciation
Plan)

Employees (including senior executives) of the Company
receive remuneration in the form of share-based payments,
whereby employees render services as consideration for
equity instruments (equity-settled transactions).

Equity-settled transactions

The cost of equity-settled transactions is determined by the fair
value at the date when the grant is made using an appropriate
valuation model.

That cost is recognized, together with a corresponding increase
in share-based payment (SBP) reserves in equity, over the
period in which the performance and/or service conditions are
fulfilled in employee benefits expense. The cumulative expense
recognized for equity-settled transactions at each reporting
date until the vesting date reflects the extent to which the
vesting period has expired and the Company’s best estimate
of the number of equity instruments that will ultimately vest.
The standalone statement of profit and loss expense or credit
for a period represents the movement in cumulative expense
recognized as at the beginning and end of that period and is
recognized in employee benefits expense.

Service and non-market performance conditions are not
taken into account when determining the grant date fair value
of awards, but the likelihood of the conditions being met
is assessed as part of the Company’s best estimate of the
number of equity instruments that will ultimately vest. Market
performance conditions are reflected within the grant date fair
value. Any other conditions attached to an award, but without
an associated service requirement, are considered to be non¬
vesting conditions. Non-vesting conditions are reflected in
the fair value of an award and lead to an immediate expensing
of an award unless there are also service and/or performance
conditions.

No expense is recognized for awards that do not ultimately vest
because non-market performance and/or service conditions
have not been met. Where awards include a market or non¬
vesting condition, the transactions are treated as vested
irrespective of whether the market or non-vesting condition is
satisfied, provided that all other performance and/or service
conditions are satisfied.

When the terms of an equity-settled award are modified, the
minimum expense recognized is the expense had the terms
had not been modified, if the original terms of the award are
met. An additional expense is recognized for any modification
that increases the total fair value of the share-based payment
transaction, or is otherwise beneficial to the employee as
measured at the date of modification. Where an award is
cancelled by the entity or by the counterparty, any remaining
element of the fair value of the award is expensed immediately
through profit or loss.

The dilutive effect of outstanding options is reflected as
additional share dilution in the computation of diluted earnings
per share.

(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 amortized 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 or for which
the Company has applied the 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 or for which the Company has
applied the practical expedient are measured at the transaction
price determined under Ind AS 115.

In order for a financial asset to be classified and measured
at amortized cost or fair value through OCI, 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.

Subsequent measurement

For purposes of subsequent measurement, financial assets are
classified in below categories:

• Financial assets at amortized cost

• Financial assets at fair value through other comprehensive
income (FVTOCI)

• Financial assets at fair value through profit or loss (FVTPL)

A ‘Financial asset’ is measured at the amortized cost, if both the
following conditions are met:

(i) The asset is held within a business model whose objective
is to hold assets for collecting contractual cash flows; and

(ii) Contractual terms of the asset give rise on specified dates
to cash flows that are solely payments of principal and
interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are
subsequently measured at amortized cost using the effective
interest rate (EIR) method. This category generally applies to
trade and other receivables.

A ‘Financial asset’ is classified as FVTOCI, if both of the following
criteria are met:

(i) The objective of the business model is achieved both by
collecting contractual cash flows and selling the financial
assets; and

(ii) The asset’s contractual cash flows represent SPPI.

Financial assets included within the FVTOCI category are
measured initially as well as at each reporting date at fair value.
Fair value movements are recognized in OCI.

FVTPL is a residual category for financial assets. Any financial
asset, which does not meet the criteria for categorization as at
amortized cost or as FVTOCI, is classified as at FVTPL. Financial
assets included within the FVTPL category are measured at fair
value with all changes recognized in the standalone statement
of profit or loss.

All equity investments in scope of Ind AS 109 are measured
at fair value. Equity instruments included within the FVTPL
category are measured at fair value with all changes recognized
in the standalone statement of profit or loss.

Investment in subsidiary

Investments in subsidiary are carried at cost less provision for
impairment, if any.

De-recognition

A financial asset (or, where applicable, a part of a financial asset
or part of a Company of similar financial assets) is primarily
derecognized (i.e. removed from the balance sheet) when:

• The rights to receive cash flows from the asset have expired;
or

• The 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
(a) the Company has transferred substantially all the risks
and rewards of the asset, or (b) the Company has neither
transferred nor retained substantially all the risks and
rewards of the asset, but has transferred control of the
asset.

The transferred asset and the associated liability are measured
on a basis that reflects the rights and obligations that the
Company has retained.

Impairment of financial assets

In accordance with Ind AS 109, the Company applies expected
credit loss (ECL) model for measurement and recognition of
impairment loss on the financial assets and credit risk exposure.
The Company follows ‘simplified approach’ for recognition of
impairment loss allowance on trade receivables. The application
of simplified approach does not require the Company to track

changes in credit risk. Rather, it recognises impairment loss
allowance based on lifetime ECLs at each reporting date, right
from its initial recognition.

ECL is the 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 (i.e., all
cash shortfalls), discounted at the original Effective interest rate
(‘EIR’). ECL allowance (or reversal) recognized during the period
is considered as income/ expense in the standalone statement
of profit and loss. This amount is reflected under the head ‘other
expenses’ in the standalone statement of profit or loss.

The Company uses a provision matrix based on age to determine
impairment loss allowance on portfolio of its trade receivables

Financial liabilities

Initial recognition and measurement

All financial liabilities are recognized initially at fair value and
in case of borrowings and payables, net of directly attributable
transaction costs. The Company’s financial liabilities include
borrowings, lease liabilities, trade and other payables, and
derivative financial instruments.

Subsequent measurement

The measurement of financial liabilities depends on their
classification. Financial liabilities at fair value through the
standalone statement of profit or loss include financial liabilities
held for trading and financial liabilities designated upon initial
recognition as fair value through profit or loss. Gains or losses
on liabilities held for trading are recognized in the standalone
statement of profit or loss.

Financial liabilities designated upon initial recognition at fair
value through profit or loss are designated as such at the initial
date of recognition, and only if the criteria in Ind AS 109 are
satisfied. For liabilities designated as FVTPL, fair value gains/
losses attributable to changes in own credit risk are recognized
in OCI. These gains/loss are not subsequently transferred
to profit or loss. However, the Company may transfer the
cumulative gain or loss within equity. All other changes in fair
value of such liability are recognized in the standalone statement
of profit or loss.

Loans and borrowings

Borrowings is the category most relevant to the Company. After
initial recognition, interest-bearing borrowings are subsequently
measured at amortized cost using the EIR method. Gains and
losses are recognized in standalone statement of profit or loss
when the liabilities are derecognized as well as through the EIR
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 EIR. The EIR amortization is included as finance costs
in the standalone statement of profit and loss.

Financial guarantee

Financial guarantee issued by the Company that require a
payment to be made to reimburse the holder for a loss it incurs
because the specified debtor fails to make a payment when due
in accordance with the terms of a debt instrument, is recognized
initially as a liability at fair value, adjusted for transaction costs
that are directly attributable to the issuance of the guarantee.
Subsequently, the liability is measured at the higher of the
amount of loss allowance determined as per impairment
requirements of Ind AS 109 and the amount recognized less
cumulative amortization.

De-recognition

A financial liability is derecognized when the obligation under the
liability is discharged or cancelled or expired. 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 de-recognition 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 or loss.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net
amount is reported in the standalone 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
realise the assets and settle the liabilities simultaneously.

(s) Derivative financial instruments and hedge accounting

The Company uses derivative financial instruments, such
as forward currency contracts to hedge its foreign currency
risks. Such derivative financial instruments are initially
recognized 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.

Any derivative that is either not designated as a hedge,
or is so designated but is ineffective as per Ind AS 109, is
categorized as a financial asset or financial liability, at fair
value through statement of profit and loss. The effective
portion of changes in the fair value of the derivative
designated as hedge and is effective as per Ind AS 109, is
recognized in other comprehensive income.

Cash flow hedge

Derivative instruments qualify for hedge accounting when
the instrument is designated as a hedge; the hedged item is

specifically identifiable and exposes the Company to risk; and it
is expected that a change in fair value of the derivative instrument
and an opposite change in the fair value of the hedged item will
have a high degree of correlation.

For derivative instruments where hedge accounting is applied,
the Company records the effective portion of derivative
instruments that are designated as cash flow hedges in
other comprehensive income/(loss) in the statement of
comprehensive income, which is reclassified into statement
of profit and loss in the same period during which the hedged
item affects statement of profit and loss. The remaining gain or
loss on the derivative instrument in excess of the cumulative
change in the present value of future cash flows of the hedged
item, if any (i.e., the ineffective portion) or hedge components
excluded from the assessment of effectiveness, and changes
in fair value of other derivative instruments not designated
as qualifying hedges is recorded as gains/losses, net in the
statement of profit and loss. If the hedging instrument expires
or is sold, terminated or exercised, the cumulative gain or loss
on the hedging instrument recognized in the cash flow hedging
reserve (in other comprehensive income/(loss)) until the period
the hedge was effective remains in the cash flow hedging reserve
until the forecasted transaction occurs.

When it is highly probable that a forecasted transaction will not
occur, the Company discontinues the hedge accounting and
recognizes immediately, in the statement of profit and loss, the
gains and losses attributable to such derivative instrument that
were accumulated in other comprehensive income/(loss).

Changes in fair value of foreign currency derivative instruments
not designated as cash flow hedges are recognized in the
statement of profit and loss and reported within foreign exchange
gains/loss.

(t) Cash and cash equivalents

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

(u) Standalone statement of cash flow

Cash flows are reported using the indirect method,
whereby profit/(loss) for the period is adjusted for the
effects of transactions of a non-cash nature, any deferrals
or accruals of past or future operating cash receipts or
payments and item of income or expenses associated
with investing or financing cash flows. The cash flows
from operating, investing and financing activities of the
Company are segregated.

(v) Cash dividend to equity holders

The Company recognises a liability to make cash
distributions to equity holders 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 recognized
directly in equity.

(w) Contingent liabilities

A contingent liability is a possible obligation 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
Company; or a present obligation that arises from past
events but is not recognized because it is not probable that
an outflow of resources embodying economic benefits will
be required to settle the obligation; or the amount of the
obligation cannot be measured with sufficient reliability.
The Company does not recognize a contingent liability
but discloses its existence in the standalone financial
statements.

(x) Earnings per share

Basic earnings per share is calculated by dividing the
net profit or loss for the period attributable to equity
shareholders by the weighted average number of equity
shares outstanding during the period.

For the purpose of calculating diluted earnings per share,
the net profit or loss for the period attributable to equity
shareholders and the weighted average number of shares
outstanding during the period are adjusted for the effects
of all dilutive potential equity shares. The effects of anti¬
dilutive potential equity shares are not considered in
calculating dilutive earnings per share.

(y) Segment reporting

In accordance with Ind AS 108, Operating segments,
segment information has been provided in the consolidated
financial statements of the Company and therefore no
separate disclosure on segment information is given in
these standalone financial statements.

Changes in accounting policies and disclosures

New and amended standards

Several amendments and interpretations apply for the first time
annual periods beginning on or after April 1, 2025, but do not
have an 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.

3.(i) Property, plant and equipment (cont...)

Notes:

(a) Property, plant and equipment except leasehold land is owned by the Company. The title deeds of the immovable
properties are held in the name of the Company subject to charge created for borrowings as detailed in note no. 18(a).

(b) Buildings include those constructed on leasehold land as follows:

4. Right-of-use assets

The Company has lease contracts for leasehold land, prepaid leasehold land rentals, factory premises and office space.
Leases generally have lease terms between 3 and 99 years.

The Company also has certain leases of warehouse, with lease terms of 12 months or less and leases of office equipment
with low value. The Company applies the ‘short-term lease’ and ‘lease of low-value assets’ recognition exemptions for
these leases. Refer note 18(b) for lease liabilities.

Note:

a) Based on Net worth, future operational plan, projected cash flows and valuation carried out, the Company
had assessed the carrying value of its investment in its wholly owned subsidiaries as at March 31, 2026 and
March 31,2025.

b) Based on the financial statements of the wholly owned subsidiary namely Luxlite Lamp SARL Luxembourg (Luxlite),
and Suprajit USA Inc (consolidated), the subsidiaries have incurred loss in the current year and in the earlier years.
The Company, carried out fair valuation of the as at March 31, 2026 and has considered the carrying value to be
appropriate and accordingly provision for impairment in investment in respect of Luxlite of '792.30 Million (March 31,
2025: '792.30 Million) has been retained.

c) As at March 31, 2025, the Company had an investment of '258.00 million (net of impairment on investment of
'54.00 million). Liquidation of Trifa completed on March 20, 2026 and the Company realised liquidation proceeds of
'312.49 million. Accordingly, previously recognised provision for impairment of '54.00 million has been reversed and
disclosed as exceptional item during the year ended March 31,2026.

d) During the year ended March 31, 2025, the Company entered into the Memorandum of Understanding (MOU) with
the Chuo Spring Company Limited, Japan (Chuo). This collaboration includes a 50:50 joint venture (JV) in India to
design, manufacture, and supply transmission cables, and a Technical Assistance agreement, which grants JV access
to Chuo’s unique Japanese Transmission cable technology. With reference to the said JV, the Company incorporated
Suprajit Chuhatsu Control Systems Private Limited on December 27, 2024. The said subsidiary company will
subsequently be converted into a JV with Chuo and did not have commercial operations during the year.

e) Changes in investments arising from non cash investing activities

g) On December 18, 2024, the Company acquired 48,510 (1.94%) equity share holding in Solarcraft Power India 26
Private Limited (Solarcraft) at a face value of '10 per share. On November 07, 2025, the Company further acquired
392,490 (3.57%) equity share holding at a face value of Rs. 10 per share.

On March 27, 2026, the Company invested in 44,100 0.001% Compulsorily Convertible Debentures (CCDs) issued by
Solarcraft at a face value of '100 per CCD. The CCDs are convertible into Equity Shares in the ratio of 1:10 (a) at the
option of Solarcraft or (b) upon expiry of twenty five years.

The investment is under a power purchase agreement with the investee.

(a) Terms / rights attached to equity shares:

The Company has only one class of equity shares having a par value of '1 per share. Each holder of equity share is entitled
to one vote per share and such amount of dividend per share as declared by the Company. The Company declares and pays
dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in
the ensuing Annual General Meeting.

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

(f) Aggregate number of bonus shares issued, shares issued for consideration other than cash during the period of five
years immediately preceding the reporting date:

The Company has not issued any bonus shares, shares issued for consideration other than cash for the period of five years
immediately preceding the balance sheet date.

Buy back of shares

(g) The Company had bought back 1,500,000 fully paid equity shares of '1 each during the year ended March 31,2022.

(h) On August 14, 2024, the Board of Directors approved a proposal to Buy-back up to 1,500,000 fully paid equity
shares of '1 each (representing 1.08% of paid-up equity share capital of the company at that date) from the shareholders of
the Company on a proportionate basis through tender offer, at a price of '750 per fully paid-up equity share for an aggregate
amount not exceeding '1125.00 Million in accordance with the provisions contained in the Securities and Exchange
Board of India (Buyback of Securities) Regulations, 2018, as amended and the Companies Act, 2013 and rules made
thereunder. The buy-back was completed on September 20, 2024. Capital redemption reserve was created for value of the
shares extinguished ('1.50 Million). The balance cost of buy back of '1123.50 Million over par value of equity shares was off
set from securities premium and corresponding tax towards buy back of equity shares of '261.59 Million was off set from
surplus in the statement of profit and loss.

There have been no other buy back of shares for the period of five years immediately preceding the date at which the Balance

ohpipit iq nmnamH

Nature and purpose of reserves17.1 Capital reserve

The Company recognised capital subsidy received of ^ 4.58 million prior to April 1, 2017 and profit on forfeiture of the
Company’s own equity instruments of ^ 0.55 million to capital reserve.

17.2 Capital redemption reserve

Capital redemption reserve includes ^293.70 Million arising on redemption of Preference shares of erstwhile Phoenix
Lamps Limited and merger of Phoenix Lamps Limited with the Company, the balances have been brought as such to the
Company. Further, the Company recognised capital redemption reserve of ^1.50 Million and ^1.50 Million on buy back of
equity shares during the year ended March 31,2022 and March 31,2025 respectively.

17.3 Securities premium

Securities premium is used to record the premium on issue of shares. The reserve can be utilised in accordance with the
provisions of the Companies Act, 2013.

17.4 General reserve

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. Consequent to introduction of the 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 the Companies Act, 2013.

17.5 Share based payments reserves

Share based payments reserves represents employee share based expense recognised in fair valuation of option expenses
on ESAR.

17.6 Cash Flow hedge reserve

Hedging reserve represents the cumulative effective portion of gains or losses arising on changes in fair value of hedging
instruments entered into for cash flow hedges, which is recognised in OCI and later reclassified to statement of profit and
loss when the hedge item affects profit or loss.

37. Earnings per share (EPS)

Basic earnings per share amounts are calculated by dividing the profit for the year attributable to equity holders of the
Company by the weighted average number of equity shares outstanding during the year. Diluted EPS amounts are calculated
by dividing the profit for the year attributable to equity holders of the Company by the weighted average number of equity
shares outstanding during the year plus the weighted average number of equity shares that would be issued on conversion
of all the dilutive potential equity shares into equity shares.

40. The Company has entered into ‘International transactions’ with ‘Associated Enterprises’ which are subject to Transfer Pricing
regulations in India. The Company is in the process of carrying out transfer pricing study for the year ended March 31,2026
in this regard, to comply with the requirements of the Income Tax Act, 1961. The Management of the Company, is of the
opinion that such transactions with Associated Enterprises are at arm’s length and hence in compliance with the aforesaid
legislation. Consequently, this will not have any impact on the standalone financial statements, particularly on account of tax
expense and that of provision for taxation.

41. Employee benefit plans

Implementation of codes on wages:

On November 21, 2025, the Government of India notified four Labour Codes-Code on Wages, 2019; Industrial
Relations Code, 2020; Code on Social Security, 2020; and Occupational Safety, Health and Working Conditions Code,
2020 - consolidating 29 existing labour laws. The Ministry of Labour & Employment has published draft Central Rules
and FAQs to facilitate assessment of financial impact due to changes in regulations. The Company has assessed and
accounted for the incremental impact of these changes with the best information available. Considering the impact is
non-recurring in nature and is driven by regulatory changes, the incremental impact of '71.11 Million in respect of gratuity
and compensated absences has been disclosed under Exceptional Items in the financial statements 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 Code and would provide appropriate accounting effect as and when such
clarifications are issued / rules are notified.

(a) Defined contribution plans

The Company makes contributions to Provident Fund, Employee State Insurance scheme and National pension
system contributions which are defined contribution plan for qualifying employees. Under the scheme, the Company
is required to contribute a specified percentage of the payroll costs to fund the benefits.

(b) Defined benefit plans
Gratuity

The Company offers gratuity benefits to employees, a defined benefit plan, gratuity plan is governed by the Payment
of Gratuity Act, 1972. Under gratuity plan, every employee who has completed at least five years of service gets a
gratuity on departure at 15 days of last drawn salary for each completed year of service. The scheme is funded with an
insurance company in the form of qualifying insurance policy.

The following tables summarize the components of net benefit expense recognized in the standalone statement
of profit and loss and the funded status and amounts recognized in the standalone Balance Sheet.

(i) The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority,
promotion and other relevant factors, such as supply and demand in the employment market. The overall expected
rate of return on assets is determined based on the market price prevailing on that date, applicable to the period
over which the obligation is to be settled.

(ii) The sensitivity analysis above have been determined based on a method that extrapolates the impact on defined
benefit obligation as a result of reasonable change in key assumptions occurring at the end of the reporting period.

(iii) The weighted average duration of the defined benefit obligation at the end of the reporting period is 10.24 years
(March 31,2025: 11.90 years).

44. Operating lease as lessor

The company has entered into lease agreement with subsidiary for the lease of vacant land. The total rental income for the
year under non-cancellable operating leases amounted to T6.47 Million ( March 31,2025 T 6.16 Million).

The future minimum lease receivable under non-cancellable operating leases are as follows:

45. (iii) Valuation technique used to determine fair value

a) The Company holds derivative financial instruments such as foreign currency forward and options contracts to
mitigate the risk of changes in exchange rates on foreign currency exposures. The counterparty for these contracts
is generally a bank. These derivative financial instruments are valued based on quoted prices for similar assets and
liabilities in active markets or inputs that are directly or indirectly observable in the marketplace. Hence, the valuation is
considered Level 2 by the management.

b) The Company has investment in quoted mutual funds/ bonds. The investments other than investment in subsidiaries
are carried at fair value through profit and loss using quoted prices in active markets and accordingly classified within
Level 1 of the valuation hierarchy.

c) The Company has investment in unquoted equity shares under a power purchase agreement with the investee carried at
fair value through profit and loss through inputs that are not based on observable market data an accordingly considered
Level 3 by the management.

46. Capital management

The primary objective of the Company’s capital management is to ensure that it maintains a strong credit rating and capital
ratios in order to ensure sustained growth in the business and to maximise the shareholders value.

(i) The Company is predominantly equity financed as evident from the capital structure table above. Further the Company
has sufficient cash and cash equivalents, current investments and financial assets which are liquid to meet the debts.

(ii) In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to ensure
that it meets financial covenants attached to the borrowings that define capital structure requirements. The breaches in
meeting the financial covenants would permit the bank to immediately call borrowings. There have been no breaches in
the financial covenants of any borrowings in the current year.

47. Financial risk management
Objective and policies:

The Company’s principal financial liabilities comprise borrowings, lease liabilities and trade and other payables. The main
purpose of these financial liabilities is to finance the Company’s operations. The Company’s principal financial assets include
loans, Investment in mutual funds and bonds, trade and other receivables, and cash and cash equivalents that derive directly
from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees
the management of these risks. It is the Company’s policy that no trading in derivatives for speculative purposes may
be undertaken. The Board of Directors reviews and agrees policies for managing each of these risks, which are
summarised below:

i) 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 equity price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings,
deposits, fair value through profit and loss investments and derivative financial instruments.

i) a) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of the Company’s financial instruments will fluctuate
due to change in the market interest rates. The Company’s exposure to the risk of changes in market interest rate relates
primarily to the Company’s borrowings with floating interest rates.

The following table demonstrates the sensitivity to a reasonably possible change in interest rates, with all other variables
held constant. The impact on entity’s profit before tax due to change in the interest rate/ fair value of financial liabilities
are as disclosed below:

i) b) 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 exchange risk arises from its foreign operations and foreign currency revenues
and expenses . The Company has exposures to United States Dollars (‘USD’), Great Britain Pound (‘GBP’), Euro (‘EUR’)
and other currencies. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the
Company’s operating activities.

The Company uses derivative financial instruments, such as foreign exchange forward contracts, to mitigate the risk of
changes in foreign currency exchange rates in respect of its trade receivables.

Sensitivity analysis

Every 1% appreciation or depreciation of the respective foreign currencies compared to functional currency of the
Company would cause the profit before tax in proportion to revenue to increase or decrease respectively by 0.24% (March
31,2025: 0.24%).

Cashflow Hedge

Effective April 1,2025, the Company has adopted hedge accounting for certain highly probable forecast sales transactions
that are being hedged using forward contracts, in accordance with the Indian Accounting Standards (Ind AS 109). The Company
holds derivative financial instruments - foreign currency forward contracts to mitigate the risk of changes in exchange rates
on foreign currency exposures. The counter party for these transactions are banks. These derivative financial instruments
are valued based on quoted prices for similar assets and liabilities in active markets or inputs that are directly or indirectly
observable in the market place.

i) c) Commodity price risk

The Company is affected by the price volatility of certain commodities. Its operating activities require the ongoing
purchase and manufacture of automotive cables & lamps and therefore require a continuous supply of below said
products. The Company’s Board of Directors has developed and enacted a risk management strategy regarding
commodity price risk and its mitigation.

ii) Credit risk

Credit risk is the risk that a counter party will not meet its obligations under a financial instrument or customer
contract leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade
receivables) and from its financing activities including deposits with banks and financial institutions, investments, loan
to subsidiary, foreign exchange transactions and other financial instruments.

a. Trade receivables

Credit risk is managed by each business unit as per the Company’s established policy, procedures and control
relating to customer credit risk management. Outstanding customer receivables are regularly monitored.
The impairment analysis is performed at each reporting date on an individual basis for major clients. In addition,
a large number of minor receivables are grouped into homogeneous groups and assessed for impairment
collectively. The maximum exposure to credit risk at the reporting date is the carrying value of each class of
financial assets. The Company does not hold collateral as security.

b. Credit risk exposure

The Company’s credit period generally ranges from 0-365 days. The credit risk exposure of the Company is as
below:

The Company evaluates the concentration of risk with respect to trade receivables as low, since majority of its
customers are reputed automobile companies and are spread across multiple geographies.

c. Financial instruments and cash deposits

Credit risk is limited, as the Company generally invests in deposits with banks with high credit ratings assigned by
international and domestic credit rating agencies. Investment primarily includes investment in liquid mutual fund
units and bonds. Counterparty credit limits are reviewed by the Company periodically and the limits are set to
minimise the concentration of risks and therefore mitigate financial loss through counterparty’s potential failure
to make payments.

iii) Liquidity risk

The Company’s principal sources of liquidity are cash and cash equivalents, investment in mutual funds, bonds and the
cash flow that is generated from operations. The Company believes that the cash and cash equivalents is sufficient to
meet its current requirements. Accordingly no liquidity risk is perceived.

48. Employee Stock Appreciation Rights (‘ESAR’) (Equity Settled):

Employee Stock Appreciation Rights Plan - 2017 (the ESAR 2017 Plan): Effective June 26, 2018, the Company instituted the
ESAR 2017 plan. The Board of directors of the Company and shareholders approved the ESAR 2017 plan at its meeting held
on September 13, 2017 and November 11,2017 respectively. The ESAR 2017 Plan provides for the issue of stock appreciation
rights (SARs) to certain employees of the Company and its subsidiaries.

The ESAR 2017 Plan is administered by the Nomination and Remuneration Committee. As per the ESAR 2017 Plan, the stock
appreciation rights are granted at the exercise price of ?1/-. The equity shares covered under these stock appreciation rights
vest over five years from the date of grant. The exercise period is five years from the respective date of vesting.

The stock appreciation rights outstanding on March 31, 2026 has the weighted average remaining contractual life of
3.71 years (March 31,2025 4.60 years).

The weighted average market price of SARs exercised during the year ended March 31, 2026 is ^467.31 (March 31, 2025:
^571.55)

The weighted average fair value of stock appreciation rights granted during the year ended March 31,2026 was ^ Nil (March
31,2025 ^412.15). The Black - Scholes valuation model has been used for computing the weighted fair value considering the
following inputs:

50. Events after the reporting period

Other than as disclosed in the standalone financial statements, there were no events after the balance sheet date which
require disclosure or adjustments to the reported amounts.

51. The Board of Directors of the Company have proposed final dividend of '2.00 per share after the balance sheet date which is
subject to approval by the shareholders at the annual general meeting.

52. Other statutory information

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the
Company for holding any Benami property.

(ii) The Company has transaction with the below mentioned Company struck-off under section 248 of the Companies Act,
2013:

(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory
period,

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

(v) Except as disclosed in note 10 to the standalone financial statements, the Company has not advanced or loaned or
invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding
that the Intermediary shall:

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

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

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

(vii) In respect of maintenance of books of accounts and other books and papers in electronic mode, the Company has
used three accounting software viz. SAP S4 HANA, Oracle (Enterprise resource planning), and Peopleworks (payroll
records) and:

In respect of SAP S4 HANA, audit trail was not enabled at the database level. Further no instance of audit trail feature
being tampered with was noted in respect of accounting software where the audit trail has been enabled. Additionally,
the audit trail in respect of the financial year ended March 31,2025 has not been preserved by the company as per the
statutory requirements for record retention.

In respect of Oracle and People works, audit trail was not enabled at the application and the database level. Accordingly,
management is not in possession of information to determine whether there were any instances of audit trail feature
being tampered with. Additionally, where applicable, the audit trail for the financial year ended March 31, 2025 and
March 31, 2024 in respect of the aforesaid software has not been preserved by the Company as per the statutory
requirements for record retention.

The Company is taking necessary steps to ensure compliance under applicable statute.

(viii) The Company has no 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).

(ix) The Company has not been declared as wilful defaulter by any bank or financial institution.