m. Provisions, contingent liabilities

Provisions represent liabilities for which the amount
or timing is uncertain. Provisions are recognized
when the Company has a present obligation (legal
or constructive), as a result of past events and it is
probable that an outflow of resources, that can be
reliably estimated, will be required to settle such
an obligation.

If the effect of the time value of money is material,
provisions are determined by discounting the
expected future cash flows to net present value using
an appropriate pre-tax discount rate that reflects
current market assessments of the time value of
money and, where appropriate, the risks specific to
the liability. Unwinding of the discount is recognized
in the Statement of Profit and Loss as a finance cost.
Provisions are reviewed at each reporting date and are
adjusted to reflect the current best estimate.

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 recognised
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 recognised because
it cannot be measured reliably. The Company does
not recognize a contingent liability but discloses its
existence in the financial statements.

n. Employee benefit schemes

(i) Short-term employee benefits

Employee benefits payable wholly within twelve
months of receiving employee services are classified as
short-term employee benefits. These benefits include
salaries and wages, performance incentives and
compensated absences which are expected to occur
in next twelve months. The undiscounted amount of
short-term employee benefits to be paid in exchange
for employee services is recognised as an expense as
the related service is rendered by employees.

Compensated absences:

Compensated absences accruing to employees and
which can be carried to future periods but where
there are restrictions on availment or encashment or
where the availment or encashment is not expected to
occur wholly in the next twelve months, the liability on
account of the benefit is determined actuarially using
the projected unit credit method.

(ii) Post-employment benefits
Defined contribution plan

Retirement benefits in form of superannuation is a
defined contribution scheme. The Company has no
obligation, other than the contribution payable to
the superannuation fund. The Company recognizes
contribution payable to the superannuation scheme as
an expenditure, 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 recognised 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 recognised as an asset to the extent that the pre¬
payment will lead to a reduction in future payment or a
cash refund.

Defined benefit plans - Gratuity, Provident fund and
long-term service award

Gratuity

The Company has a defined benefit plan (the "Gratuity
Plan”). The Gratuity Plan provides for a lumpsum
payment to vested employees at retirement, death
while in employment or on termination of employment
of an amount equivalent to 15 to 30 days salary
payable for each completed year of service depending
upon the tenure of service subject to maximum limit
of 20 months' salary. Vesting occurs upon completion
of five continuous years of service. Presently, the
Company's gratuity plan is funded.

The present value of the defined benefit obligation
is determined by discounting the estimated future
cash outflows by reference to market yields at the
end of the reporting period on Government bonds
that have terms approximating to the terms of the
related obligation The net interest cost is calculated
by applying the discount rate to the net balance of the
defined benefit obligation and the fair value of plan
assets, if any. This cost is included in employee benefit
expense in the Statement of Profit and Loss.

The liability or asset recognised in the Balance Sheet
in respect of gratuity plan is the present value of the
defined benefit obligation at the end of the reporting
period less the fair value of plan assets, if any. The
defined benefit obligation is calculated annually by
actuaries using the projected unit credit method and
spread over the period during which the benefit is
expected to be derived from employees' services.

Remeasurements, comprising of actuarial gains and
losses from changes in actuarial assumptions, 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 recognised immediately in the Balance
Sheet with a corresponding debit or credit to retained
earnings through Other Comprehensive Income (OCI)
in the period in which they occur. Remeasurements
are not reclassified to Statement of Profit and Loss
in subsequent periods. Changes in the present value
of the defined benefit obligation resulting from
plan amendments or curtailments are recognised
immediately in the Statement of Profit and Loss as
past service cost.

Net interest is calculated by applying the discount
rate to the net defined benefit liability or asset. The
Company recognises the following changes in the
net defined benefit obligation as an expense in the
Statement of Profit and Loss:

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

• Net interest expense or income
Provident fund

Eligible employees and the Company make monthly
contributions to the provident fund plan equal to a
specified percentage of the covered employee's salary.
The Company contributes a portion to the 'Usha Martin
Employees Provident Fund Trust'. The trust invests in
specific designated instruments as prescribed by the
Government. The remaining portion is contributed
to the Government administered pension fund. The
rate at which the annual interest is payable to the
beneficiaries by the trust is being administered by the
Government. The Company has an obligation to make
good the shortfall, if any, between the return from the
investments of the Trust and the notified interest rate.

Long term service award

Certain employees of the Company rendering greater
than twenty years of service will receive long service
award on all causes of exit as per the Company's
policy. The cost of providing benefits under this plan is

determined by actuarial valuation using the projected
unit credit method by independent qualified actuaries
at the year end.

Share-based payment arrangements

Equity-settled share-based payments to eligible
employees under the Scheme called as "Usha Martin
Employee Stock Options Plan - 2024 ("ESOP Plan”) are
measured at the fair value of the equity instruments
at the grant date. Details regarding the determination
of the fair value of equity-settled share-based
transactions are set out in note 28(b). The fair value
determined at the grant date of the equity-settled
share based payments is expensed on a straight-line
basis over the vesting period, based on the Company's
estimate of equity instruments that will eventually vest,
with a corresponding increase in equity. At the end of
each reporting year, the Company revisits its estimate
of the number of equity instruments expected to vest.
The impact of the revision of the original estimates,
if any, is recognised in Statement of profit and loss
such that the cumulative expense reflects the revised
estimate, with a corresponding adjustment to the
equity-settled employee benefits reserve.

The Company has created an Usha Martin Limited
Employee Welfare Trust ('UMLEWT') for providing
share-based payment to its employees. The Company
uses UMLEWT as a vehicle for distributing shares
to employees under the employee remuneration
schemes. UMLEWT buys shares of the Company from
the secondary market, for giving shares to employees.
Share options exercised during the reporting period
are satisfied with treasury shares. The Company treats
UMLEWT as its extension and shares held by UMLEWT
are treated as treasury shares.

Own equity instruments that are reacquired (treasury
shares) are recognised at cost and deducted from
equity. No gain or loss is recognised in profit or loss
on the purchase, sale, issue or cancellation of the
Company's own equity instruments. Any difference
between the carrying amount and the consideration,
if reissued, is recognised in Equity. Share options
exercised during the reporting period are settled
against pool of treasury shares.

o. Financial instrument

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

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

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:
Revenue from contracts with customers. Revenue
towards satisfaction of a performance obligation is
measured at the amount of transaction price (net of
variable consideration) allocated to that performance
obligation. The transaction price of goods sold and
services rendered is net of variable consideration on
account of various discounts and schemes offered
by the Company as part of the contract. Refer to
the accounting policies in section (d) Revenue from
contracts with customers.

In order for a financial asset to be classified and
measured at amortised 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. 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
OCI are held within a business model with the objective
of both holding to collect contractual cash flows
and selling.

Purchases or sales of financial assets that require
delivery of assets within a timeframe established by
regulation or convention in the market place (regular
way trades) are recognised on the trade date, i.e., the
date that the Company commits to purchase or sell
the asset.

Subsequent measurement

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

(i) Financial assets at amortised cost (debt
instruments)

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

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

b) 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 amortised 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 the
EIR. The EIR amortisation is included in finance
income in the Statement of Profit and Loss. The
losses arising from impairment are recognised in
the Statement of Profit and Loss. This category
generally applies to trade and other receivables.

(ii) Financial assets at fair value through Other
Comprehensive Income (FVOCI) with recycling of
cumulative gains and losses (debt instruments)

A 'financial asset' is classified as at the FVOCI if
both of the following criteria are met:

a) The objective of the business model is
achieved both by collecting contractual cash
flows and selling the financial assets, and

b) The asset's contractual cash flows
represent SPPI.

Debt instruments included within the FVOCI
category are measured initially as well as at each
reporting date at fair value. For debt instruments,
at fair value through OCI, interest income, foreign
exchange revaluation and impairment losses
or reversals are recognised in the Statement
of Profit and Loss and computed in the same
manner as for financial assets measured at
amortised cost. The remaining fair value changes
are recognised in OCI. Upon derecognition, the
cumulative fair value changes recognised in OCI is
reclassified from the equity to profit or loss.

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

A financial asset which is not classified in any of
the above categories are measured at FVTPL.
Financial assets are reclassified subsequent to
their recognition, if the Company changes its
business model for managing those financial
assets. Changes in business model are made and
applied prospectively from the reclassification
date which is the first day of immediately next

reporting period following the changes in
business model in accordance with principles laid
down under Ind AS 109: Financial Instruments.

Financial assets at fair value through profit or
loss are carried in the Balance Sheet at fair value
with net changes in fair value recognised in the
Statement of Profit and Loss.

Dividends on listed equity investments are
recognised in the Statement of Profit and Loss
when the right of payment has been established.

(iv) Financial assets designated at fair value through
OCI with no recycling of cumulative gains and
losses upon derecognition (equity instruments)

Upon initial recognition, the Company can elect
to classify irrevocably its equity investments
as equity instruments designated at fair value
through OCI when they meet the definition of
equity under Ind AS 32: Financial Instruments:
Presentation and are not held for trading. The
classification is determined on an instrument-by¬
instrument basis.

Gains and losses on these financial assets are
never recycled to Statement of Profit and Loss.
Dividends are recognised as other income
in the Statement of Profit and Loss when
the right of payment has been established,
except when the Company benefits from such
proceeds as a recovery of part of the cost of
the financial asset, in which case, such gains are
recorded in OCI. Equity instruments designated
at fair value through OCI are not subject to
impairment assessment.

Derecognition

A financial asset (or, where applicable, a part
of a financial asset or part of a Company of
similar financial assets) is primarily derecognised
when the contractual rights to receive cash
flows from the financial asset have expired or
it transfers the financial asset and the transfer
qualifies for derecognition under Ind AS 109
Financial Instruments.

Impairment of financial assets

The Company recognises an allowance for
expected credit losses (ECLs) for all financial
instruments and receivables not held at fair value
through profit or loss in accordance with Ind AS
109: Financial Instruments. ECLs are based on the
difference between the contractual cash flows
due in accordance with the contract and all the
cash flows that the Company expects to receive,

discounted at an approximation of the original
effective interest rate. The expected cash flows
will include cash flows from the sale of collateral
held or other credit enhancements that are
integral to the contractual terms.

ECLs are recognised in two stages. For credit
exposures for which there has not been a
significant increase in credit risk since initial
recognition, ECLs are provided for credit losses
that result from default events that are possible
within the next 12-months from the reporting
date (a 12-month ECL). For those credit
exposures for which there has been a significant
increase in credit risk since initial recognition,
a loss allowance is required for credit losses
expected over the remaining life of the exposure,
irrespective of the timing of the default (a lifetime
ECL).

For trade receivables and contract assets,
the Company applies a simplified approach in
calculating ECLs. Therefore, the Company does
not track changes in credit risk, but instead
recognises a loss allowance based on lifetime
ECLs at each reporting date. The Company has
established a provision matrix that is based on
its historical credit loss experience, adjusted for
forward-looking factors specific to the debtors
and the economic environment.

For debt instruments at fair value through
OCI, the Company applies the low credit risk
simplification. At every reporting date, the
Company evaluates whether the debt instrument
is considered to have low credit risk using all
reasonable and supportable information that is
available without undue cost or effort. In making
that evaluation, the Company reassesses the
internal credit rating of the debt instrument. In
addition, the Company considers that there has
been a significant increase in credit risk when
contractual payments are more than 30 days
past due.

The Company's debt instruments at fair value
through OCI comprise solely of quoted bonds
that are graded in the top investment category
(very good and good) by the good credit rating
agency and, therefore, are considered to be
low credit risk investments. It is the Company's
policy to measure ECLs on such instruments on a
12-month basis. However, when there has been a
significant increase in credit risk since origination,
the allowance will be based on the lifetime ECL.
The Company uses the ratings from the good
credit rating agency both to determine whether
the debt instrument has significantly increased in
credit risk and to estimate ECLs.

The Company considers a financial asset in default
when contractual payments are 90 days past due.
However, in certain cases, the Company may also
consider a financial asset to be in default when
internal or external information indicates that the
Company is unlikely to receive the outstanding
contractual amounts in full before taking into
account any credit enhancements held by the
Company. A financial asset is written off when
there is no reasonable expectation of recovering
the contractual cash flows.

Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial
recognition, as financial liabilities at fair value
through profit or loss, borrowings (net of directly
attributable cost), payables, or as derivatives
designated as hedging instruments in an effective
hedge, as appropriate. Fees of recurring nature
are directly recognised in the Statement of Profit
and Loss as finance cost.

All financial liabilities are recognised initially at
fair value and, in the case of financial liabilities
at amortised cost, net of directly attributable
transaction costs.

The Company's financial liabilities include trade
and other payables, borrowings including bank
overdrafts, financial guarantee contracts and
derivative financial instruments.

Subsequent measurement

The measurement of financial liabilities depends
on their classification, as described below:

Financial Liabilities at fair value through Profit
and Loss (FVTPL)

Financial liabilities at fair value through profit or
loss include financial liabilities held for trading
and financial liabilities designated upon initial
recognition as at fair value through profit or
loss. Financial liabilities are classified as held for
trading if they are incurred for the purpose of
repurchasing in the near term.

This category also includes derivative financial
instruments entered into by the Company that
are not designated as hedging instruments in
hedge relationships as defined by Ind AS 109:
Financial instruments.

Gains or losses on liabilities held for trading are
recognised in the Statement of Profit and Loss.

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

For trade and other payables maturing within one
year from the balance sheet date, the carrying
amounts approximate fair value due to the short
maturity of these instruments.

Financial liabilities at amortised cost (loans and
borrowings)

After initial recognition, interest-bearing loans
and borrowings are subsequently measured at
amortised cost using the effective interest rate
(EIR) method. Gains and losses are recognised in
Statement of Profit and Loss when the liabilities
are derecognised as well as through the EIR
amortisation process.

Amortised 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 amortisation is included as finance
costs in the Statement of Profit and Loss.

Financial guarantee contracts

Financial guarantee contracts issued by the
Company are those contracts 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. Financial guarantee
contracts are recognised 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: Financial instruments and the amount
recognised less cumulative amortisation.

Derecognition

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
recognised in the Statement of Profit and Loss.

Offsetting of financial instruments

Financial 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 recognised amounts and there is an
intention to settle on a net basis, to realise the
assets and settle the liabilities simultaneously.

p. Derivative financial instruments

Initial recognition and subsequent measurement

The Company uses derivative financial instruments,
such as foreign exchange contracts to hedge its
exposure to movements in foreign exchange rates
relating to the underlying transactions. The Company
does not hold derivative financial instruments for
speculation purposes. Such 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 and
the resulting profit and loss is taken to the Statement
of Profit and Loss. Derivatives are carried as financial
assets when the fair value is positive and as financial
liabilities when the fair value is negative. Any gains
or losses arising from changes in the fair value of
derivatives are taken directly to Statement of Profit
and Loss.

q. Cash and cash equivalents

Cash and cash equivalent in the Balance Sheet
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.

For the purpose of the statement of cash flows, cash
and cash equivalents consist of cash and short-term
deposits, as defined above.

r. Cash dividend distributions 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.

s. Earnings per share

Basic earnings per share is calculated by dividing the
net profit after tax for the year attributable to equity
shareholders by the weighted average number of
equity shares outstanding during the year. For the
purpose of calculating diluted earnings per share, the
net profit after tax for the year attributable to equity
shareholders and the weighted average number of
shares outstanding during the year are adjusted for the
effects of all dilutive potential equity shares.

t. Operating Segment

Based on the Company's internal structure and
information reviewed by the Chief Operating Decision
Maker (CODM) to assess the Company's financial
performance, the Company is engaged solely in the
business of manufacture and sale of Wire and Wire
ropes, steel wires, strands, cords, related accessories,
wire drawing and allied machine, etc. Accordingly, the
Company has a single operating segment, i.e., "Wire &
Wire Ropes”.

u. Use of estimates and critical accounting judgements

The preparation of the financial statements in
conformity with Ind AS requires management to make
judgements, estimates and assumptions that affect
the application of accounting policies and the reported
amounts of assets, liabilities, income, expenses and
disclosures of contingent assets and liabilities at the
date of these financial statements and the reported
amounts of revenues and expenses for the years
presented. Actual results may differ from these
estimates under different assumptions and conditions.

Estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting estimates
are recognised in the period in which the estimate is
revised and future periods affected.

Uncertainty about these assumptions and estimates
could result in outcomes that require a material
adjustment to the carrying amount of assets or
liabilities affected in next financial years (Refer note
29).

v. Climate-related matters

The Company considers climate-related matters
in estimates and assumptions, where appropriate.

This assessment includes a wide range of possible
impacts on the Company due to both physical and
transition risks. Even though the Company believes
its business model and products will still be viable
after the transition to a low-carbon economy,
climate-related matters increase the uncertainty in
estimates and assumptions underpinning several
items in the financial statements. Even though climate
related risks might not currently have a significant
impact on measurement, the Company is closely
monitoring relevant changes and developments, such
as new climate-related legislation. The items and
considerations that are most directly impacted by
climate-related matters are:

- Useful life of property, plant and equipment.

When reviewing the residual values and expected
useful lives of assets, the Company considers
climate-related matters, such as climate-
related legislation and regulations that may
restrict the use of assets or require significant
capital expenditures.

2B. RECENT ACCOUNTING PRONOUNCEMENTS

a) New and amended standards

The Ministry of Corporate Affairs (MCA) has
notified Companies (Indian Accounting Standards)
Amendment Rules, 2024 to amend the following Ind
AS which are effective for annual periods beginning
on or after 1 April 2025. The Company has not early
adopted any standard, interpretation or amendment
that has been issued but is not yet effective.

(i) Amendments to Ind AS 21 - Lack of exchangeability

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 above amendments do not have any impact on the
Company's financial statement.

(ii) 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 above amendments do not have any impact on the
Company's financial statement.

(iii) 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 above amendments do not have any impact on the
Company's financial statement.

(iv) 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 amendments had no impact on the Company's
financial statements as the Company is not in scope of
the Pillar Two model rules.

b) A. Standards notified but not yet effective

The amendments to the standards that are notified
by the Ministry of Corporate Affairs (MCA), but
not yet effective, up to the date of issuance of the
Company's financial statements are disclosed below.
The Company will adopt these amendments to the
standards, when they become effective.

Amendments to Ind AS 1 - Classification of
Liabilities as Current or Non-current and Non¬
current liabilities with Covenants and Ind AS 10
Events after the Reporting Period

Ind AS 10 has been amended to remove the previous
treatment under which a lender's post reporting date
waiver—granted before the financial statements were
approved for issue—of a breach of a material covenant
in a long term loan arrangement that occurred on or
before the end of the reporting period, resulting in the
liability becoming payable on demand at the reporting
date, was regarded as an adjusting event.

For annual reporting periods beginning on or after
1 April 2026, any breach of a covenant—whether
material or immaterial—occurring on or before the
reporting date will, in accordance with Ind AS 1,
require the related liability to be classified as current,
unless the lender has granted a waiver of the breach
on or before the reporting date and has agreed not to
demand repayment for at least 12 months after the
reporting date as a consequence of the breach. Such a
waiver shall be treated as an adjusting event.

The amendments are effective for annual reporting
periods beginning on or after 1 April 2026
retrospectively in accordance with Ind AS 8.

Note: There are no disputed trade receivables which are considered good as at 31^st March, 2026 and 31^st March, 2025.

(i) No trade receivables are due from directors or other officers of the Company either severally or jointly with any other
person. Also no trade or others receivables are due from firms or private companies respectively in which any director is
a partner, a director or a member.

(ii) Trade receivables are generally non-interest bearing and are normally on terms of 30 to 240 days.

(iii) For lien/charge against trade receivables refer note 13(i), note 15(i) and 16(i).

(b) 1,53,65,450 (31^st March, 2025 : 1,78,65,450) equity shares of face value of Re. 1 each are represented by Global
Depository Receipts (GDRs). Each GDR represents five underlying equity shares.

(c) Rights, preference and restrictions attached to equity shares

The Company has only one class of equity shares having par value of Re. 1 per share. Each holder of equity shares is
entitled to one vote per share (except in case of GDRs). The holders of GDRs do not have voting right with respect to
underlying equity shares. Dividend, if proposed, by the Board of Directors is subject to the approval of the shareholders
in the ensuing Annual General Meeting, except in case of interim dividend.

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

Loan covenants

Bank loans contain certain debt covenants relating to net debt to EBITDA, debt service coverage ratio, fixed assets coverage

ratio etc. The Company has complied with all debt covenants stipulated by the terms of bank loan during the year.

EBITDA = Profit before tax Finance cost Depreciation/amortization - Non operating income.

Nature of security

(A) Secured by a first pari-passu charge by hypothecation/mortgage over all the property, plant and equipment (present
and future) of the Company.

(B) Secured by a second charge on entire current assets of the Company (present and future), pari-passu with other
term lenders.

Interest rate and terms of repayment

(a) Rupee term loan from a bank amounting to Rs. 7,119 lakhs outstanding as on March 31, 2025 payable in thirteen

quarterly instalments from 1^st April, 2026 to 1^st April, 2029 has been prepaid during the year ended 31^st March, 2026.
Interest was paid on monthly basis at one-year marginal cost of fund of the bank plus 0.35% p.a.

Nature of security

(A) Secured by a first charge by hypothecation/mortgage over all the property, plant and equipment (present and future)
of the Company.

(B) Secured by a second charge on entire current assets of the Company (present and future), pari-passu with other
term lenders.

(C) Secured by personal guarantee of Managing Director of the Company.

Interest rate and terms of repayment

(a) Rupee term loan from a bank amounting to Rs. 1,654 lakhs which was due to be repaid in three quarterly instalments
from 1^st July, 2025 to 1^st January, 2026 is repaid during the year. Interest was paid on monthly basis at one-year
marginal cost of fund of the bank plus 0.35% p.a.

(b) Rupee term loan from a bank amounting to Rs. 2,772 lakhs which was due to be repaid in three quarterly instalments
from 30^th June, 2025 to 31^st December, 2025 is repaid during the year. Interest was paid on monthly basis at one-year
marginal cost of fund of the bank plus 0.85% p.a.

(c) Rupee term loan from a bank amounting to Rs. 749 lakhs which was due for repayment on 30^th June, 2025 is repaid
during the year. Interest was paid on monthly basis at one-year marginal cost of fund of the bank plus 0.85% p.a.

Year ended 31^st March, 2026

The Company is in compliance with filing of quarterly financial follow up report with State Bank of India and ICIQ Bank

Limited for cash credit facility and working capital loan. The following table provides a reconciliation of statement filed with

the above-mentioned banks and books of accounts:

Trade payables are non interest bearing and normally settled up to 180 days terms.

Acceptances represent arrangements whereby banks make direct payments to suppliers of raw materials. The banks are
subsequently repaid by the Company at a later date providing working capital timing benefits. Where these arrangements
are for raw materials and have a maturity of upto the credit period contracted with the suppliers, the economic substance of
the transaction is considered to be operating in nature and included under "Trade payables”.

Acceptances payable to banks are secured by hypothecation of all current assets of the Company. Further such acceptances
are also secured by charge on certain movable & immovable properties, subject to first charge in favour of financial
institutions and banks created/to be created in respect of any existing/future financial assistance/accommodation which has
been/may be obtained by the Company.

Refer note 33B(b) for explanations on the Company's liquidity risk management processes.

28(b). EMPLOYEE SHARE BASED PAYMENT PLANS

The Board of Directors of the Company had approved a Scheme called as "Usha Martin Employee Stock Options Plan - 2024
(" ESOP Plan") in their meeting held on August 12, 2024. Pursuant to the ESOP Plan, the Company has constituted Usha
Martin Employees Welfare Trust ('Trust') to acquire, hold and allocate/transfer equity shares of the Company to eligible
employees (as defined in the ESOP Plan) from time to time on the terms and conditions specified under the ESOP Plan. The
said trust had purchased, during the financial year 2025-26, Company's equity shares aggregated to 1,51,000 (31^st March,
2025: 1,90,500) equity shares from the secondary open market at an average cost of Rs. 432.12 (31^st March, 2025 :

Rs. 342.23) per share for which the Company had given loan to trust amounting to Rs. 652 lakhs (31^st March, 2025: Rs. 652
lakhs). The financial statements of the Trust have been included in the standalone financial statements of the Company in
accordance with the requirements of Ind AS and cost of such treasury shares has been presented as a deduction in other
equity. Such number of equity shares (which are lying with trust) have been reduced while computing basic and diluted
earnings per share.

29. SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

The preparation of the Ind AS financial statements requires management to make judgements, estimates and assumptions
that affect the reported amounts and the disclosures. The Company based its assumptions and estimates on parameters
available when the financial statements were prepared and these are reviewed at each Balance Sheet date.

Other disclosures relating to the Company's exposure to risks and uncertainties includes:

• Capital management (Refer note 33D)

• Financial risk management objectives and policies (Refer note 33B)

• Sensitivity analysis disclosures (Refer note 31J)

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have
a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial

year, are described below. 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.

Useful economic lives of property, plant and equipment and impairment considerations

Property, plant and equipment are depreciated over their useful economic lives. Management reviews the useful economic
lives at least once a year and any changes could affect the depreciation rates prospectively and hence the carrying values of
assets. The Company also reviews its property, plant and equipment, for possible impairment if there are events or changes
in circumstances that indicate that carrying values of the assets may not be recoverable. In assessing the property, plant
and equipment for impairment, factors leading to significant reduction in profits such as changes in commodity prices, the
Company's business plans and changes in regulatory environment are taken into consideration.

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 fair value less costs of disposal calculation is based on
available data from binding sales transactions, conducted at arm's length, for similar assets or observable market prices
less incremental costs for disposing of the asset. The value in use calculation is based on a DCF model. The carrying value of
the assets of a cash generating unit (CGU) is compared with the recoverable amount of those assets, that is, the higher of
fair value less costs of disposal and value in use. Recoverable value is based on the management estimates of commodity
prices, market demand and supply, economic and regulatory climates, long-term plan, discount rates and other factors. 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 for extrapolation purposes. Any subsequent changes to cash flow due to changes in the above
mentioned factors could impact the carrying value of the assets.

The impairment provisions for financial assets are based on assumptions about risk of default and expected cash loss rates.
The Company uses judgement 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.

Judgements are required in assessing the recoverability of overdue trade receivables and determining whether a provision
against those receivables is required. Factors considered include the credit rating of the counterparty, the amount and timing
of anticipated future payments and any possible actions that can be taken to mitigate the risk of non-payment.

Taxes

Deferred tax assets are recognised for deductible temporary differences and unused tax losses to the extent that it is
probable that taxable profit will be available against which the losses can be utilised. Significant management judgement is
required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of
future taxable profits and business developments together with future tax planning strategies.

Defined benefit plans

The cost and the present value of the defined benefit gratuity plan and long term service award are determined using
actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments
in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the
complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes
in these assumptions. All assumptions are reviewed at each reporting date. The parameter most subject to change is the
discount rate. In determining the appropriate discount rate for plans, the management considers the interest rates of
Government bonds in currencies consistent with the currencies of the post-employment benefit obligation. The mortality
rate is based on publicly available mortality table. Those mortality tables tend to change only at interval in response to
demographic changes. Future salary increases and gratuity increases are based on expected future inflation rates.

Leases - estimating the incremental borrowing rate

The Company cannot readily determine the interest rate implicit in the lease, therefore, it uses its incremental borrowing
rate (IBR) to measure lease liabilities. The IBR is the rate of interest that the Company would have to pay to borrow over a
similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in
a similar economic environment. The Company estimates the IBR using observable inputs (such as market interest rates)
when available.

Provisions and contingencies

The assessments undertaken in recognising provisions and contingencies have been made in accordance with the applicable
Ind AS.

A provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation that can be
estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Where the
effect of time value of money is material, provisions are determined by discounting the expected future cash flows.

The Company has capital commitments in relation to various capital projects which are not recognized on the Balance Sheet.
In the normal course of business, contingent liabilities may arise from litigation and other claims against the Company.
Guarantees are also provided in the normal course of business. There are certain obligations which management has
concluded, based on all available facts and circumstances, are not probable of payment or are very difficult to quantify
reliably, and such obligations are treated as contingent liabilities and disclosed in the notes but are not reflected as liabilities
in the financial statements. Although there can be no assurance regarding the final outcome of the legal proceedings in
which the Company is involved, it is not expected that such contingencies will have a material effect on its financial position
or profitability.

The timing of recognition and quantification of the liability (including litigations) requires the application of judgement to
existing facts and circumstances, which can be subject to change. The carrying amounts of provisions and liabilities are
reviewed regularly and revised to take account of changing facts and circumstances.

Non-current assets held for sale

Assets and liabilities of non-current assets held for sale are measured at the lower of carrying amount and fair value less
cost to sale. The determination of fair value less costs to sale include use of management estimates and assumptions.

The fair value has been estimated using valuation techniques (including income and market approach) which includes
unobservable inputs.

Valuation of inventories

The Company follows suitable provisioning norms for writing down the value of slow-moving, non-moving and surplus
inventory. This involves various judgements and assumptions that may differ from actual developments in the future. Raw
materials used in the production are written down below cost as finished products in which they will be consumed are
expected to be sold below cost. Inventory which is expected to be sold to third party is only considered for provision which
is computed by comparing Net realisable value and cost. Net realisable value represents the estimated selling price for
inventories less all estimated costs of completion and costs necessary to make the sale.

30. COMMITMENTS AND CONTINGENCIES

A Leases

Company as a lessee

(i) The Company as a lessee has entered into various lease contracts, which includes lease of land, office space, employee
residential accommodation, guest house etc. Generally, the Company is restricted from assigning and subleasing the
leased assets. There are lease contracts that include extension and termination options. These options are negotiated
by management to provide flexibility in aligning with the Company's business needs. Management exercises significant
judgement in determining whether these extension and termination options are reasonably certain to be exercised.

The Company has certain leases of office space, employee residential accommodation, guest house etc with lease terms
of 12 months or less. The Company applies the 'short-term lease' and 'lease of low-value assets' recognition exemptions
for these leases.

(iv) Others

a) The Company has provided a Letter of Comfort to a bank that has provided credit facilities to its joint venture,
Pengg Usha Martin Wires Private Limited. Such facilities have been utilised to the extent of Rs. 370 lakhs as at
31^st March, 2026 (31^st March, 2025: Rs. 2,510 lakhs) by the joint venture company. Vide the letter of comfort,
the Company has provided an undertaking not to dispose off its investment in that joint venture company and to
ensure that no losses are suffered by the lender concerned. The Company has assessed that it is only possible, but
not probable, that outflow of economic resources will be required [Refer note 32(iii)].

b) The Company has provided a Letter of Comfort to a bank that has provided credit facilities to its subsidiary, UM
Cables Limited. Such facilities have been utilised to the extent of Rs. 2,684 lakhs as at 31^st March, 2026 (31^st
March, 2025: Rs. 2,185 lakhs) by the subsidiary company. Vide the letter of comfort, the Company has provided an
undertaking not to dispose off its investment in that subsidiary company and to ensure that no losses are suffered
by the lender concerned. The Company has assessed that it is only possible, but not probable, that outflow of
economic resources will be required [Refer note 32(iii)].

c) The Company has provided a Letter of Comfort to a bank that has provided credit facilities to its subsidiary, Usha
Martin Singapore Pte. Limited. Such facilities have been utilised to the extent of Rs. Nil as at 31^st March, 2026 (31^st
March, 2025: Rs. 3,295 lakhs) by the subsidiary company. Vide the letter of comfort, the Company has provided an
undertaking not to dispose off its investment in that subsidiary company and to ensure that no losses are suffered
by the lender concerned. The Company has assessed that it is only possible, but not probable, that outflow of
economic resources will be required [Refer note 32(iii)].

(b) Post employment defined benefit plans

I. Gratuity plan

The Company provides for gratuity, a defined benefit retirement plan ("the gratuity plan”) covering eligible employees of
the Company. The Gratuity plan provides a lumpsum payment to vested employees at retirement, death, incapitatation
or termination of employement, of an amount based on the repective employee's salary and the tenure of employment
with the Company. The Company contributes gratuity liabilities to the insurance company.

II. Long term service award

Employees of the Company rendering greater than twenty years of service will receive long service award on all causes
of exit as per the Company's policy. The cost of providing benefits under this plan is determined by actuarial valuation
using the projected unit credit method by independent qualified actuaries at the year end.

The following tables summarise 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 for the above defined benefit plans:

The sensitivity analysis 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.

The sensitivity analysis are based on a change in a significant assumption, keeping all other assumptions constant. The
sensitivity analysis may not be representative of an actual change in the defined benefit obligation as it is unlikely that
changes in assumptions would occur in isolation from one another.

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

K Risk analysis

Company is exposed to a 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:

(i) Interest risk

A decrease in the interest rate on plan assets will increase the plan liability.

(ii) Longevity risk/Life expectancy

The present value of the defined benefit plan liability is calculated by reference to the best estimate of the 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.

(iii) 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.

(iv) Investment risk

The Gratuity plan is funded with Life Insurance Corporation of India (LIC). The Company does not have any liberty to
manage the fund provided to LIC. The present value of the defined benefit plan liability is calculated using a discount
rate determined by reference to Government of India bonds. If the return on plan asset is below this rate, it will create a
plan deficit.

III Provident Fund

Provident Fund contributions in respect of employees are made to Trusts administered by the Company and such Trusts
invest funds following a pattern of investments prescribed by the Government. Both the employer and the employees
contribute to this Fund and such contributions together with interest accumulated thereon are payable to employees
at the time of their separation from the Company or retirement, whichever is earlier. The benefit vests immediately on
rendering of services by the employee. The interest rate payable to the members of the Trusts is not lower than the rate
of interest declared annually by the Government under the Employees' Provident Funds and Miscellaneous Provisions
Act, 1952 and shortfall, if any, on account of interest is to be made good by the Company. In terms of the guidance on
implementing Indian Accounting Standard 19 on Employee Benefits, a provident fund set up by the Company is treated
as a defined benefit plan in view of the Company's obligation to meet interest shortfall, if any.

The Actuary has carried out actuarial valuation of plan's liabilities and interest rate guarantee obligations as at the
balance sheet date using projected unit credit method and deterministic approach as outlined in the Guidance Note 29
issued by the Institute of Actuaries of India. Based on such valuation, there is no future anticipated shortfall with regard
to interest rate obligation of the Company as at the Balance Sheet date. Further during the period, the Company's
contribution of Rs. 569 lakhs (31^st March, 2025: Rs. 541 lakhs) to the Provident Fund Trust, has been expensed under
"Contribution to provident and other funds”. Disclosures given hereunder are restricted to the information available as
per the Actuary's report.

Terms and conditions of transactions with related parties

The sales to and purchases from related parties are made on terms equivalent to those that prevail in arm's length
transactions with third parties. Outstanding balances at the year-end are unsecured and settlement occurs through
normal banking channels. For the year ended 31^st March, 2026 and 31^st March, 2025, the Company has not recorded
any impairment of receivables relating to amounts owed by related parties. 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.

The Company routinely enters into transactions with these related parties in the ordinary course of business at market
rates and terms.

*Figure is below rounding off norm adopted by the Company.

The Company enters into derivative financial instruments with various counterparties, principally financial institutions with
investment grade credit ratings. Foreign exchange forward contracts are valued using valuation techniques, which employs
the use of market observable inputs. The most frequently applied valuation techniques include forward pricing model,
using present value calculations. The model incorporate various inputs including the credit quality of counterparties, foreign
exchange spot and forward rates, yield curves of the respective currencies, currency basis spreads between the respective
currencies, interest rate curves and forward rate curves of the underlying commodity. As at 31^st March, 2026, the mark-to-
market value of other derivative assets / liabilities positions is net of a credit valuation adjustment attributable to derivative
counterparty default risk.

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 explains the judgements and estimates made in determining the fair values of the financial instruments that
are recognised and measured at fair value through profit and loss. To provide an indication about the reliability of the inputs
used in determining fair value, the Company has classified its financial investments into the three levels prescribed under the
accounting standard.

Notes:

The Company uses the following hierarchy for determining and /or disclosing the fair value of financial instruments by
valuation techniques:

Level 1 hierarchy includes financial instruments measured using quoted prices in active markets for identical assets
or liabilities.

Level 2 hierarchy includes the fair value of financial instruments that are not traded in an active market (for example, over-
the counter derivatives) and the fair value 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.

If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

There are no transfers between levels 1 and 2 during the year. The Company's policy is to recognise transfers into and
transfers out of fair value hierarchy levels as at the end of the reporting period.

33 B FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

Risk management framework

The Company's board of directors has overall responsibility for the establishment and oversight of the Company's risk
management framework. The board of directors has established the Risk Management Committee (RMC) which is
responsible for developing and monitoring the Company's risk management policies.

The Company's risk management policies are established to identify and analyse the risks faced by the Company, to set
appropriate risk limits and control and monitor risks and adherence to limits. Risk management policies and systems are
reviewed regularly to reflect changes in market conditions and the Company's activities.

The Company's activities expose it to market risk, liquidity risk and credit risk which are measured, monitored and managed
to abide by the principles of risk management.

(a) Credit risk

Credit risk refers to the risk of financial loss that may arise from counterparty failure on its contractual obligations
resulting in financial loss to the Company. Credit risk encompasses both the direct risk of default and the risk of
deterioration of creditworthiness as well as concentration risks.

The Company controls its own exposure to credit risk. All external customers undergo a creditworthiness check. The
Company performs an on-going assessment and monitoring of the financial position and the risk of default. Based
on the aforesaid checks, monitoring and historical data, the Company does not perceive any significant credit risk on
trade receivables. Outstanding customer receivables are regularly monitored and any shipments to major customers
are generally covered by letters of credit or other forms of credit insurance obtained from reputable banks and other
financial institutions.

In addition, as part of its cash management and credit risk function, the Company regularly evaluates the
creditworthiness of financial and banking institutions where it deposits cash and performs trade finance operations.
The Company primarily has banking relationships with the public sector, private and large international banks with good
credit rating.

Trade Receivable aggregating Rs. 7,155 lakhs (31^st March, 2025: Rs. 14,940 lakhs) from two customers, each
contributes to more than 10% of outstanding trade receivables as at 31^st March, 2026.

The maximum exposure to the credit risk at the reporting date is the carrying value of all financial assets amounting to
Rs. 80,592 lakhs (31^st March, 2025: Rs. 69,481 lakhs) as disclosed in note 33A(a).

An impairment analysis is performed at each reporting date using a provision matrix to measure expected credit losses.
The provision rates are based on days past due for groupings of various customer segments with similar loss patterns
(i.e., by geographical region, product type, customer type and rating, and coverage by letters of credit or other forms of
credit insurance). The calculation reflects the probability-weighted outcome, the time value of money and reasonable
and supportable information that is available at the reporting date about past events, current conditions and forecasts
of future economic conditions. The Company does not hold collateral as security. The letters of credit and other forms
of credit insurance are considered integral part of trade receivables and considered in the calculation of impairment.
The Company evaluates the concentration of risk with respect to trade receivables and contract assets as low, as its
customers are located in several jurisdictions and industries and operate in largely independent markets. Movement in
the allowance for credit impaired trade receivables is given in Note 9 (i).

The details of year-end trade receivables which were past due but not impaired as at 31^st March, 2026 and 31^st March,
2025 is given in Note 9(i).

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 only with approved counterparties and within credit limits
assigned to each counterparty. Counterparty credit limits are reviewed by the Company's Board of Directors on an
annual basis, and may be updated throughout the year. The limits are set to minimise the concentration of risks and
therefore mitigate financial loss through counterparty's potential failure to make payments.

Concentrations arise when a number of counterparties are engaged in the same geographical region, or have economic
features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic,
political or other conditions. Concentrations indicate the relative sensitivity of the Company's performance to
developments affecting a particular industry.

In order to avoid excessive concentrations of risk, the Company's policies and procedures include specific guidelines
to focus on the maintenance of a diversified portfolio. Identified concentrations of credit risks are controlled and
managed accordingly.

(b) Liquidity risk

Liquidity risk arises from the Company's inability to meet its cash flow commitments on the due date. The Company has
liquidity risk monitoring processes covering short-term, mid-term and long-term funding. The Company's objective is
to maintain a balance between continuity of funding and flexibility through the use of committed credit facilities and
loan funds. Management regularly monitors projected and actual cash flow data, analyses the repayment schedules of
the existing financial assets and liabilities and performs annual detailed budgeting procedures coupled with rolling cash
flow forecasts.

The amount of guarantees given on behalf of subsidiaries included in note 30C(i) represents the maximum amount
the Company could be forced to settle for the full guaranteed amount. Based on the expectation at the end of
the reporting period, the Company considers that it is more likely that such an amount will not be payable under
the arrangement.

(c) 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. The Company is exposed to different types of market risks. The market risk is the possibility that
changes in foreign currency exchange rates, interest rates and commodity prices may affect the value of the Company's
financial assets, liabilities or expected future cash flows. The fair value information presented below is based on the
information available with the management as of the reporting date.

(c.1) Foreign currency exchange 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. Exposures can arise on account of the various assets and liabilities which are denominated in
currencies other than Indian Rupee.

The following analysis is based on the gross exposure as at the reporting date which could affect the statement of profit
and loss. The exposure is mitigated by some of the derivative contracts entered by the Company as disclosed under the
section on "Derivative financial instruments”.

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in market interest rates. The Company's exposure to the risk of changes in market interest rates relates
primarily to the Company's long-term debt obligations with floating interest rates.

Interest rate risk is measured by using the cash flow sensitivity for changes in variable interest rates. Any movement
in the reference rates could have an impact on the Company's cash flows as well as costs. The Company is subject to
variable interest rates on some of its interest bearing liabilities. The Company's interest rate exposure is mainly related
to debt obligations. The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate
loans and borrowings.

The exposure of the Company's financial assets and financial liabilities as at 31^st March, 2026 and 31^st March, 2025 to
interest rate risk is as follows:

The Company's revenue is exposed to the risk of price fluctuations related to the sale of its wire & wire rope products.
Market forces generally determine prices for such products sold by the Company. These prices may be influenced by
factors such as supply and demand, production costs (including the costs of raw material inputs) and global and regional
economic conditions and growth. Adverse changes in any of these factors may reduce the revenue that the Company
earns from the sale of wire & wire rope products. The Company primarily purchases its raw materials in the open market
from third parties. The Company is therefore subject to fluctuations in prices of wire rods, zinc, lead, lubricants, core and
other raw material inputs. The Company purchased substantially all of coal requirements from third parties in the open
market during the year ended 31^st March, 2026 and 31^st March, 2025 respectively.

The Company does not have any commodity forward contract for Commodity hedging.

The following table details the Company's sensitivity to a 5% movement in the input price of wire rod and zinc. The
sensitivity analysis includes only 5% change in commodity prices for quantity sold or consumed during the year, with all
other variables held constant. A positive number below indicates an increase in profit or equity where the commodity
prices decrease by 5%. For a 5% increase in commodity prices, there would be a comparable impact on profit or equity,
and the balances below are negative.

33C. DERIVATIVE FINANCIAL INSTRUMENTS

The Company uses derivative instruments as part of its management of exposure to fluctuations in foreign currency
exchange rates. All derivative activities for risk management purposes are carried out by specialist teams that have the
appropriate skills, experience and supervision. The Company does not acquire or issue derivative financial instruments
for trading or speculative purposes. The Company does not enter into complex derivative transactions to manage the
treasury risks. Treasury derivative transactions are normally in the form of forward contracts and these are subject
to the Company guidelines and policies. The fair values of all derivatives are separately recorded in the balance sheet
within current and non-current assets and liabilities. The use of derivatives can give rise to credit and market risk. The
Company tries to control credit risk as far as possible by only entering into contracts with reputable banks and financial
institutions. The use of derivative instruments is subject to limits, authorities and regular monitoring by appropriate
levels of management. The limits, authorities and monitoring systems are periodically reviewed by management and
the Board. The market risk on derivatives is mitigated by changes in the valuation of the underlying assets, liabilities or
transactions, as derivatives are used only for risk management purposes.

33D. CAPITAL MANAGEMENT

For the purpose of the Company's capital management, capital includes issued equity capital and other equity. The
Company's primary capital management objectives are to ensure its ability to continue as a going concern and to
optimize the cost of capital in order to enhance value to shareholders.

The Company manages its capital structure and makes adjustments to it as and when required. To maintain or adjust
the capital structure, the Company may pay dividend or repay debts, raise new debt or issue new shares. The Company
monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. No major changes were
made in the objectives, policies or processes for managing capital during the year ended 31^st March, 2026 and 31^st
March, 2025 respectively. The Company includes within net debt, interest bearing loans and borrowings, less cash and
cash equivalents as follows:

34(i) The Company was allocated two coal blocks namely, Kathautia Coal Block and Lohari Coal Block in the State of

Jharkhand for captive use. Pursuant to the Hon'ble Supreme Courts' order dated 24th September, 2014 followed by
promulgation of the Coal Mines (Special Provisions) Act, 2015, (CMSP Act), the allocation of all coal blocks since 1993,
including the aforesaid coal blocks allocated to the Company were cancelled with effect from 24th September, 2014 in
case of Lohari Coal Block and 1st April, 2015 in the case of Kathautia Coal Block.

Through the process of public auction as envisaged in the CMSP Act, the aforesaid Coal Blocks had been allocated to
other successful bidders by the Central Government. Pursuant to conclusion of such auction, the Central Government
had also issued vesting orders for Kathautia and Lohari Coal Blocks for transfer and vesting the Company's rights, title
and interest in and over the land and mine infrastructure of the said coal blocks to the respective successful bidders.

As at 31^st March, 2026, the Company was carrying an aggregate amount of Rs. 315 lakhs (net of provision/impairment
charge of Rs. 3,734 lakhs) as property, plant and equipment / advance against land, which consists of assets in the form
of land, movable and immovable properties, advances etc. as follows:

The Company's application before the Hon'ble, Delhi High Court for recovery of Rs. 227 lakhs (31^st March, 2025: Rs. 227
lakhs) which after partial recovery and discounting stands at Rs. 123 lakhs (31^st March, 2025: Rs. 123 lakhs) as at the
year end. Based on its assessment which is supported by a legal opinion obtained, the management is confident of
recovery of the amount. Further, the Company is also engaged in ongoing negotiations with the party to whom the
aforesaid Coal Blocks were subsequently allotted for realization of compensation/investments in the mines.

After taking into consideration the reasons as stated above, management is of the opinion that the realizable value of
aforesaid assets will not be less than their carrying values.

34(ii) Discontinued Operations represents Steel and Bright Bar Business (SBB Business) of the Company which was

transferred to Tata Steel Long Products Limited (TSLPL) [formerly known as Tata Sponge Iron Limited] as a going
concern on slump sale basis during a prior year in accordance with the terms and conditions set out in Business
Transfer Agreement. An amount of Rs. 6,498 lakhs [net of discounting of Rs. 948 lakhs (31st March, 2025: Nil)]
is receivable as at March 31, 2026, pending registration of certain parcels of land in the name of TSLPL for which
perpetual lease and license agreements had been executed by the Company in favour of TSLPL. Further, during
the year, the Company has recognised an expense of Rs. 1,780 lakhs (31st March, 2025: Nil) towards additional
expenditure incurred / to be incurred by the Company in connection with the transfer of aforesaid land parcels.

38. (a) The Directorate of Enforcement ("ED”) had issued an order dated August 9, 2019 under the provisions of Prevention
of Money Laundering Act, 2002 (PMLA) to provisionally attach, for a period of 180 days, certain parcels of land at
Ranchi, State of Jharkhand being used by the Company for its business in connection with export and domestic sale
of iron ore fines in prior years aggregating Rs. 19,037 lakhs allegedly in contravention of terms of the mining lease
granted to the Company for the iron ore mines situated at Ghatkuri, Jharkhand. The Hon'ble High Court of Jharkhand
at Ranchi had, vide order dated February 14, 2012, held that the Company has the right to sell the iron ore including
fines as per the terms of the mining lease which was in place at that point in time. The Company had paid applicable
royalty and had made necessary disclosures in its returns and reports submitted to mining authorities. In response to
the provisional attachment order (PAO), the Company had submitted its reply before the Adjudicating Authority (AA).
Subsequently, AA had issued an order by way of which the provisional attachment was confirmed under Section 8(3)
of PMLA. Thereafter, the Company filed an appeal before the Appellate Tribunal, New Delhi and successfully obtained
a status quo order from the Tribunal on the confirmed attachment order. The Appellate Tribunal, New Delhi vide order
dated November 18, 2025, disposed of the said appeal filed by the Company without causing interference either in the
PAO or the order issued by AA confirming such PAO. Further, the protection provided under the status quo order shall
continue to the extent it relates to the possession of the attached properties.

The ED had also filed a complaint before the District and Sessions Judge Cum Special Judge, Ranchi (Trial Court,
Ranchi), pursuant to which summoning orders dated May 20, 2021 were issued to the Company and one of its
Officers. In response to the said complaint and summons received, the Company had filed a quashing petition
before the Hon'ble Jharkhand High Court and a subsequent Special Leave Petition ('SLP') before the Hon'ble
Supreme Court against the order of the Hon'ble Jharkhand High Court dismissing the Company's quashing petition.
Vide interim order dated December 15, 2021, the Hon'ble Supreme Court had granted protection to the Company
from arrest and stayed the summoning orders issued by the Trial Court, Ranchi. The Hon'ble Supreme Court vide
order dated September 28, 2022 had dismissed the SLP with the directions to the Company to present all its
defences "which are required to be considered and dealt with at the time of trial” before the aforesaid Trial Court,
Ranchi. The matter is listed for hearing on May 13, 2026. Vide order dated November 21, 2024, Trial Court, Ranchi
has taken cognizance of the charge sheet filed by the Central Bureau of Investigation (CBI) for the offence under the
Prevention of Corruption Act, 1988 and the Indian Penal Code, 1860 against the Company, its Managing Director
(MD) and one of the Other Officers, pursuant to which summoning orders dated November 26, 2024 were issued to
the Company, its MD and one of the Other Officers and the matter is scheduled to be heard on May 7, 2026.

The ongoing operations of the Company have not been affected by the aforesaid proceedings. Supported by
a legal opinion obtained, management believes that the Company has a strong case in its favour on merit and
law. Accordingly, no adjustment to these standalone financial statements in this regard have been considered
necessary by the management.

(b) On October 2, 2020, Central Bureau of Investigation (CBI) had filed a First Information Report (FIR) against the

Company, its Managing Director (MD) and certain Other Officers under the Prevention of Corruption Act, 1988 and
the Indian Penal Code, 1860 before the Special Judge, CBI, New Delhi (CBI Court, New Delhi) for allegedly trying to
influence ongoing CBI investigation pertaining to the proceedings mentioned in note 38(a) above. Vide order dated
September 15, 2022, the CBI Court, New Delhi had taken cognizance of the offence based on charge sheet filed by
the CBI against the Company, its MD and certain Other Officers and has directed the CBI to take such steps as may
be necessary to complete the investigation. The Company strongly refutes the aforesaid allegations made by the
CBI. The Company has also received summoning orders issued by the CBI Court, New Delhi, pursuant to complaint
filed by Directorate of Enforcement (ED) under the provisions of PMLA. The matters at CBI Court, New Delhi is
scheduled to be heard on May 04, 2026.

The Company has been providing information sought by the CBI and ED in this regard and intends to continue
cooperating, as required by applicable laws and relevant court orders. The Company and its MD is taking such
legal measures as considered necessary in respect of these ongoing proceedings. Supported by a legal opinion
obtained, management believes that the Company has a strong case in its favour on merit and law in these
matters. Accordingly, no adjustment to these standalone financial statements in this regard have been considered
necessary by the management.

39. On November 21, 2025, the Government of India notified provisions of the Code on Wages, 2019, the Industrial
Relations Code, 2020, the Code on Social Security, 2020 and the Occupational Safety, Health and Working Conditions
Code, 2020 (collectively referred to as the 'New Labour Codes') which consolidate twenty- nine existing labour laws
into a unified framework governing employee benefits during employment and post-employment. The Company

has assessed and disclosed the incremental impact of these changes on the basis of legal opinion obtained and the
best information available, consistent with the guidance provided by the Institute of Chartered Accountants of India.
Considering the impact arising out of an enactment of the new legislation is an event of non-recurring nature, the
Company has presented this incremental impact consisting of gratuity and leave liability of Rs. 1,586 lakhs (31^st March,
2025: Nil) and Rs. 72 lakhs (31^st March, 2025: Nil) respectively, primarily arising due to change in wage definition under
"Exceptional Item” in the Statement of Profit and Loss for the year ended March 31, 2026. The Company continues to
monitor the finalisation of rules by the Central and State Governments and clarifications from the Government on other
aspects of the New Labour Codes and will account for such developments as needed.

40. Based on the Company’s internal structure and information reviewed by the Chief Operating Decision Maker to assesses
the Company's financial performance, the Company is engaged solely in the business of manufacture and sale of wire, wire
ropes and allied products. Accordingly, the Company has only one operating segment, i.e., "Wire & Wire Ropes”.

41. The Company uses an accounting software for maintaining its books of account which has a feature of recording
audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in
the software, except that audit trail feature is not enabled for certain changes which can be made using privileged /
administrative access rights to the application and / or the underlying database. Further no instance of audit trail feature
being tampered with was noted in respect of the accounting software. Additionally, the audit trail of prior years has
been preserved by the Company as per the statutory requirements for record retention to the extent it was enabled
and recorded in the respective years.

43. 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 does not have any transactions with companies struck off.

(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) 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 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,

(vii) The Company does not have any 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).

(viii) The Company has not been declared wilful defaulter by any bank or financial Institution or other lender.

(ix) The Company is not a Core Investment Company as defined in the regulations made by Reserve Bank of India.

The Company has no Core Investment companies as part of the Group.

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

(xi) There are no events or transactions after the reporting period which is required to be disclosed under Ind AS 10.