(t) Provisions and Contingent Liabilities

(i) Provision

A provision is recorded when the Company has a
present legal or constructive obligation as a result of
past events, it is probable that an outflow of resources
will be required to settle the obligation and the amount
can be reasonably estimated.

Provision is made for estimated warranty claims in
respect of products sold which are still under warranty
at the end of the reporting period. These claims are
expected to be settled as and when warranty claims

arise. Management estimates the provision based on
historical warranty claim information and any recent
trends that may suggest future claims could differ from
historical amounts.

(ii) Contingent liability

A disclosure for a contingent liability is made when
there is a possible obligation or a present obligation
that may, but probably will not, require an outflow of
resources or liabilities, which are frivolous claims, but
required disclosure, are disclosed considering the
relevant Accounting Standards.

(u) Incentives

Incentives are considered / recorded as income on the basis
of sanction order received from the Government Authority.

(v) Financial instruments

Equity investments at fair value through other
comprehensive income

These include financial assets that are equity instruments and
are irrevocably designated as such upon initial recognition.
Subsequently, these are measured at fair value and changes
therein are recognised directly in other comprehensive
income, net of applicable income taxes.

Dividends from these equity investments are recognised in
the Statement of Profit and Loss, when the right to receive
payment has been established. When the equity investment
is derecognised, the cumulative gain or loss in equity is
transferred to retained earnings.

(w) Fair value measurement

For the purpose of fair value disclosures, the Company has
determined classes of assets and liabilities based on the
nature, characteristics and risks of the asset or liability and
the level of the fair value hierarchy as;

• Level 1 — Quoted (unadjusted) market prices in active
markets for identical assets or liabilities.

• Level 2 — Valuation techniques for which the

lowest level input that is significant to the fair value
measurement is directly or indirectly observable.

• Level 3 — Valuation techniques for which the

lowest level input that is significant to the fair value
measurement is unobservable.

The Company uses valuation techniques that are appropriate
in the circumstances and for which sufficient data are
available to measure fair value, maximising the use of relevant
observable inputs and minimising the use of unobservable
inputs.

(x) Use of estimates and judgements

The preparation of standalone financial statements in
conformity with the recognition and measurement principles
of Ind AS requires management of the Company to make
estimates and judgements that affect the reported balances
of assets and liabilities, disclosures of contingent liabilities
as at the date of standalone financial statements and the
reported amounts of income and expenses for the periods
presented.

Detailed information about accounting judgements, estimates
and assumption is included in the relevant notes.

(i) Estimation of defined benefit obligation - refer Note 37.

(ii) Estimation of provision for warranty claims - refer Note
18.

(iii) Estimated useful life and residual value of property,
plant and equipments - refer Note 2(i) (i) above.

(iv) Estimated useful life of intangible assets- refer Note 2(i)

(iii) above.

(v) Estimation of provision for Tax expenses - refer Note
2(s) above.

Estimation and underlying assumptions are reviewed on
on-going basis. Revisions to estimates are recognised
prospectively.

(y) Recent accounting pronouncements

The Ministry of Corporate Affairs (“MCA”) notifies new
standards or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as issued
from time to time.

The MCA notified amendments to Ind AS 21 - The Effects of
Changes in Foreign Exchange Rates; Ind AS 7 - Statement of
Cash Flows, Ind AS 107 - Financial Instruments: Disclosures
and Ind AS 12 - International Tax Reform, applicable w.e.f. 1
April 2025. The Company has reviewed these amendments
and based on its evaluation has determined that it does not
have any significant impact in the financial statements.

Leasing arrangements

The Company's investment property consists of industrial property situated at Chakan, Pune and the Commercial property situated at Bandra Kurla
Complex, Kurla West, Mumbai. [Refer Note 35 (a)]

Fair Value

The Company's investment property is at a location where active market is available for similar kind of properties. Hence, fair value is ascertained
on the basis of market rates prevailing for similar properties and Ready Recknor rates for the relevant survey numbers in those location, instead of
valuation by a registered valuer, and consequently classified as a Level-2 valuation.

(b) Terms/rights attached to Equity Shares

The Company has issued equity shares. All equity shares issued rank pari-passu in respect of distribution of dividend, a right to vote in
proportion to holding, and repayment of capital. 1,30,32,914 Equity Shares are quoted equity shares with no restriction on transfer of shares.
27,600 Equity Shares are ‘A' equity shares, which are transferable only to permanent employees of the Company. 1,15,748 Equity Shares
are Second ‘A' equity shares which are transferable to permanent employees, who have put in five years of service with the Company.

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

(d) Shares held by holding/ultimate holding company and/or their subsidiaries/associates

The Company is a subsidiary of Jaya Hind Industries Private Limited, which holds 57.38% (31 March 2025 : 57.38%), 75,59,928 (31 March
2025 : 75,59,928) shares in the Company.

(a) Exceptional income of ' 28,863 lakhs - being Government Incentives, as per the Madhya Pradesh Industrial Investment Promotion
Assistance Scheme, 2010, recognised on the basis of sanction order dated 23 December 2025, for the financial year 2024-25, of which
' 5,000 Lakhs has been received in April, 2026.

(b) Exceptional expenses of ' 7,739 lakhs - The New Labour Codes became effective 21 November 2025, resulting in a past period employee
benefit liability of ' 7,739 lakhs. Considering the materiality and regulatory driven, the non-recurring nature of the impact, the Company has
presented such incremental imact under “Labour Code impact - past period employee benefit liability” in standalone financial statement
of Profit and Loss for the year ended 31 March, 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 on the basis of such
developments in the period in which they are notified.

(c) The Company has initiated arbitration proceedings, against an entity, in relation to an agreement relating to transfer of technology. In the said
arbitration, the Company has claimed various reliefs. The Respondent therein has also claimed various reliefs, by way of a counterclaim.
The Company denies each and every allegation of such entity including but not limited to the counterclaim and the Company shall deal with/
defend the said allegations/counterclaim appropriately.

The Board of Directors is of the opinion that the said allegations/counterclaim of the entity can be successfully resisted by the Company.

This note/disclosure is made as a matter of caution and without prejudice to the rights of the Company or without the Company, in any way
admitting the said allegations/counterclaim or any part thereof. The information, which is usually required to be disclosed, as per Ind AS 37
(Provisions, Contingent Liabilities and Contingent Assets) is not disclosed, as such disclosure may prejudice seriously, the outcome of the
litigation (said arbitration proceedings).

32. DISCLOSURE AS PER THE REQUIREMENT OF SECTION 22 OF THE MICRO, SMALL AND MEDIUM
ENTERPRISE DEVELOPMENT ACT, 2006

On the basis of information received as to the status as Micro, Small and Medium Enterprises, from suppliers of the Company along with a copy
of the Memorandum filed by the said suppliers, as per the provisions of Section 8 of the Micro, Small and Medium Enterprises Development Act,
2006 (the Act), dues to Micro, Small and Medium Enterprises are as under:

The proceedings initiated by one of the suppliers, claiming to be a small scale enterprise, as per the provisions of Section 18 of the Act, culminated
into an award of claim for ' 157 Lakhs with interest. The Company has not accepted the said liability. The Company has a major counter-claim
against the said supplier amounting to about ' 906 Lakhs, which being unearned income, is not accounted. The award is challenged by the
Company, as per the provisions of the Act and proceedings are pending before the Hon'ble District Judge, Pune, and before the Hon'ble High Court
of Judicature at Bombay.

33. FOREIGN EXCHANGE DIFFERENCES

The amount of net exchange differences included in the Profit / Loss for the year on Revenue account is ' 438 Lakhs Credit (31 March 2025 :
' 620 Lakhs Credit) and on Capital account is ' 68 Lakhs Debit (31 March 2025 : ' 2 Lakhs Debit).

34. EXPENDITURE ON RESEARCH AND DEVELOPMENT

The Company's expenditure on its Research and Development activity during the year under report was as follows:

As per the Indian Accounting Standard (Ind AS 38) - Intangible Assets, the Company has recognised Intangible Assets, arising out of in-house
Research and Development activities of the Company, by capitalising the revenue expenditure, amounting to ' 12,788 Lakhs (31 March 2025 :
' 7,758 Lakhs).

As the development activity, of few projects, is continued, these assets are considered as Capital Work-in-progress, and will be amortised over the
period of their life, after the completion of the development phase.

35. LEASESOperating Leases
As a Lessor

(a) Industrial Shed at Chakan

The Company has entered into a Lease Agreement for Industrial shed at Chakan, Pune, for a period of 10 years. The Lease Agreement
provides for a refundable interest free deposit of ' 169 lakhs, clause for escalation of lease rental and a non-terminable lock-in period of 36
months. The Lease income has been recognised in the Statement of Profit and Loss.

(b) Freehold Land

Out of the freehold land at Akurdi, Pune

2700 sq. mtrs. (cost ' 1,374) of land is given on lease to Maharashtra State Electricity Distribution Company Limited for 99 years, w.e.f. 1
August 1989. Lease rentals are recognised in the Statement of Profit and Loss.

19,000 sq. mtrs. (cost ' 9,669) of land is given on lease to Navalmal Firodia Memorial Hospital Trust for 25 years, w.e.f. 12 August 2014.
Lease rentals are recognised in the Statement of Profit and Loss.

Out of the freehold land at Chakan, Pune

600 sq. mtrs. of land including Shed thereon given on lease to Maharashtra State Electricity Distribution Company Limited, Rajgurunagar,
Taluka Khed, District Pune, for 99 years as per lease deed dated 16 March 2020. Lease rentals are recognised in the Statement of Profit and
Loss.

These leased properties are not considered as investment property, considering the substance over form, the purpose and immateriality of
lease rentals, area and cost relative to the total area and cost of the freehold land at the respective places.

As a Lessee
Leasehold land

The Company has entered into Lease Agreements for Industrial Land, at Pithampur in Madhya Pradesh. The Company, being a Lessee, may
surrender the leased area after giving Lessor 3 months notice period in writing. The lease premium is not refundable to Company in case of early
termination of agreement by the Company. The Lessor is also entitled to terminate the Lease Agreement, if the Lessee defaults the terms and
conditions of the Lease Agreement. The lease expense has been recognised in the Statement of Profit and Loss.

39. The Company has acquired the entire equity shares of Veera Tanneries Private Limited (VTPL), a private limited company incorporated under the
Companies Act, 1956, vide a Share Purchase Agreement by and between the Company, VTPL and the shareholders of VTPL on 23 April 2026
for a total consideration of ' 16,196 lakhs (Rupees Sixteen thousand one hundred ninety six lakhs). Pursuant to such acquisition, VTPL has
now become a wholly owned subsidiary of the Company. These events being non-adjusting events, no adjustments were made in the financial
statements for the financial year 2025-26.

40. The Ministry of Environment, Forest and Climate Change has notified the Environment Protection (End-of-Life Vehicles) Rules, 2025 (“ELV Rules”)
effective 01 April, 2025, imposing Extended Producer Responsibility (EPR) on vehicle manufacturers for scrapping old vehicles and such obligations
are to be fulfilled through the purchase of EPR certificates from registered Vehicle Scrapping Facilities via a Centralised Online Portal. As per best
estimates, the Company has recognised a provision of ' 260 lakhs in the financial statements for the year ended 31 March, 2026. However, the
implementation details and operational procedures of the ELV rules including the modalities of the pricing mechanism for the EPR certificates are
yet to be developed.

41. FINANCIAL RISK MANAGEMENT
Financial Risk Management Policy and Objectives

The Company's principal financial liabilities comprise of Borrowings, 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 Trade and Other receivables and Cash and Cash equivalents,
which are derived directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk.

The management of these risks is overseen by the senior management, which is advised by a team of senior officials. The Risk Management team
oversees the policies and systems, on a regular basis to reflect changes in market conditions and Company's activities and reviews the adequacy
of the risk management framework in relation to the risks faced by the Company.

(c) Market Risk : Equity Price Risk

At the reporting date, the exposure to unquoted equity securities at fair value was ' 274 Lakhs.

At the reporting date, the exposure to quoted equity securities at fair value was ' 4,187 Lakhs. A decrease/increase of 15% on the Bank Nifty
market index could have an impact of approximately ' 829 Lakhs on the OCI or equity attributable to the Company. These changes would
not have an effect on profit or loss.

43. CAPITAL MANAGEMENT

The Company's capital includes issued Equity Capital, Share Premium and Free Reserves.

The Company's policy is to meet the financial covenants attached to the interest-bearing borrowings by maintaining a strong capital base. The
Company aims to sustain investor, creditor and market confidence so as to leverage such confidence for future capital/debt requirements.

Management monitors the return on capital earned, the capital/debt requirements for various business plans under consideration and determines
the level of dividends to equity shareholders.

44. TRANSFER TO INVESTOR EDUCATION AND PROTECTION FUND

All amounts which became due, for transfer to the credit of Investor Education and Protection Fund, as of 31 March 2026, have been transferred
to that fund, except a sum of ' 0.60 Lakh (31 March 2025 : ' 0.60 Lakh) being amount of 5 Nos. (31 March 2025 : 5 Nos.) fixed deposits and
interest thereon amounting to ' 0.25 Lakh (31 March 2025 : ' 0.25 Lakh). In view of the directives received from the Government Authorities, these
amounts are not transferred to the Fund, being involved in an investigation.

46. ADDITIONAL REGULATORY INFORMATION:(a) Loans and Advances in the nature of Loan to Related Parties:

The Company has not granted any Loans or Advances in the nature of loans to promoters, directors, KMPs and the related parties (as
defined under Companies Act, 2013), either severally or jointly with any other person as on 31 March 2026.

(b) Relationship with Struck off Companies :

As per our knowledge, the Company do not have any transactions with struck off companies as on 31 March 2026.

(c) Registration of charges or satisfaction with Registrar of Companies:

The Company has no charges or satisfaction yet to be registered with Registrar of Companies beyond the statutory period.

(d) Compliance with number of layers of companies:

The Company complies with the number of layers prescribed under Clause 87 of Section 2 of the Act, read with the Companies (Restriction
on number of layers) Rules, 2017.

(e) Compliance with approved Scheme (s) of Arrangements Accounted as per Scheme & Ind AS

Neither the Company has approached to nor any competent authority has approved any scheme of arrangements so as to account for in the
books of account of the Company, in order to disclose any deviation in that regard.

(f) Loans, Guarantee, Security given by Company to Intermediary and it is giving to others on behalf of Company:

The Company has neither advanced nor loaned or invested funds (either borrowed funds or share premium or any other sources or kind of
funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries).

(g) Crypto Currency or Virtual Currency:

The Company has neither traded nor invested in Crypto currency or Virtual currency during the financial year.

(h) Benami Property:

The Company does not have any Benami property, and hence no proceeding has been initiated or pending against the Company for holding
any Benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

(i) There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax
Act, 1961, that has not been recorded in the books of account.

47. DIVIDEND

The Board of Directors has recommended payment of Dividend of ' 50 per fully paid Equity Shares (31 March 2025: ' 40). This proposed dividend
is subject to the approval of Shareholders in the ensuing Annual General Meeting. This dividend is not recognised in the books of account at the end of
the reporting period.

48. The Company is operating in a Single Segment.

49. Previous year's figures have been re-grouped, re-arranged and re-classified wherever necessary.