(xvi) Provisions and Contingent Liabilities/Assets

Provisions are recognised when the Company has
a present obligation (legal or constructive) as a
result of a past event, it is probable that an outflow
of resources embodying economic benefits will be
required to settle the obligation and a reliable estimate
can be made of the amount of the obligation. When
the Company expects some or all of a provision to be
reimbursed, for example, under an insurance contract,
the reimbursement is recognised as a separate asset,
but only when the reimbursement is virtually certain.
The expense relating to a provision is presented in the
statement of profit and loss net of any reimbursement.
If the effect of the time value of money is material,
provisions are discounted using a current pre-tax rate
that reflects, when appropriate, the risks specific to the

liability. When discounting is used, the increase in the
provision due to the passage of time is recognised as a
finance cost.

Contingent Liabilities

Contingent liabilities are disclosed when there is
a possible obligation arising from past events, the
existence of which will be confirmed only by the
occurrence or non-occurrence of one or more uncertain
future events not wholly within the control of the
Company or a present obligation that arises from past
events where it is either not probable that an outflow
of resources will be required to settle or a reliable
estimate of the amount cannot be made. Contingent
liabilities are not recognised but are disclosed in notes.
Contingent Assets are not recognised in standalone
financial statements but are disclosed, since the
former treatment may result in the recognition of
income that may or may not be realised. However,
when the realisation of income is virtually certain, then
the related asset is not a contingent asset, and its
recognition is appropriate.

(xvii) Cash Flow Statement

The Cash flow statement has been prepared under
the "Indirect Method" as set out in Indian Accounting
Standard-7, "Statement of Cash Flows" whereby profit
for the period is adjusted for the effects of transactions
of a non-cash nature, any deferrals or accruals of past
or future operating cash receipts or payments and item
of income or expenses associated with investing or
financing cash flows. The cash flows from operating,
investing and financing activities of the Company are
segregated.

(xviii) Borrowing Costs

Borrowing costs directly attributable to the acquisition,
construction or production of an asset that necessarily
takes a substantial period of time to get ready for its
intended use or sale are capitalised as part of the cost
of the asset. All other borrowing costs are expensed
in the period in which they occur. Borrowing costs
consist of interest and other costs that an entity incurs
in connection with the borrowing of funds. Borrowing
cost also includes exchange differences to the extent
regarded as an adjustment to the borrowing costs.

(xix) Fair Value Measurements

The Company measures financial instruments, such
as, derivatives at fair value at each balance sheet date.
Fair value is the price that would be received to sell
an asset or paid to transfer a liability in an orderly
transaction between market participants at the

measurement date. The fair value measurement is
based on the presumption that the transaction to sell
the asset or transfer the liability takes place either:

• In the principal market for the asset or liability, or

• I n the absence of a principal market, in the most
advantageous market for the asset or liability.

The principal or the most advantageous market must
be accessible by the Company.

The fair value of an asset or a liability is measured
using the assumptions that market participants would
use when pricing the asset or liability, assuming that
market participants act in their economic best interest.
A fair value measurement of a non-financial asset
takes into account a market participant's ability to
generate economic benefits by using the asset in its
highest and best use or by selling it to another market
participant that would use the asset in its highest and
best use.

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.

All assets and liabilities for which fair value is measured
or disclosed in the standalone financial statements are
categorised within the fair value hierarchy, described
as follows, based on the lowest level input that is
significant to the fair value measurement as a whole:
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.

For assets and liabilities that are recognised in the
standalone financial statements on a recurring
basis, the Company determines whether transfers
have occurred between levels in the hierarchy by re¬
assessing categorisation (based on the lowest level
input that is significant to the fair value measurement
as a whole) at the end of each reporting period.

The Company determines the policies and procedures
for both recurring fair value measurement, such
as derivative instruments and unquoted financial
assets measured at fair value, and for non-recurring
measurement, such as assets held for distribution in
discontinued operations.

External valuers are involved for valuation of significant
assets and liabilities, if any. At each reporting date, the
Company analyses the movements in the values of assets
and liabilities which are required to be remeasured or re¬
assessed as per the Company's accounting policies.

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

(xx) Leases

The Company assesses at contract inception whether
a contract is, or contains, a lease. That is, if the contract
conveys the right to control the use of an identified
asset for a period of time in exchange of consideration
is considered as lease.

Short-term leases and leases of low-value assets

The Company applies the short-term lease recognition
exemption to its short-term leases (i.e., those leases
that have a lease term of 12 months or less from the
commencement date and do not contain a purchase
option). It also applies the lease of low-value assets
recognition exemption to leases that are considered
to be low value. Lease payments on short-term leases
and leases of low-value assets are recognised as
expense on a straight-line basis over the lease term.

As a lessee

The Company applies a single recognition and
measurement approach for all leases, except for
short-term leases and leases of low-value assets. The
Company recognises lease liabilities to make lease
payments and right-of-use assets representing the
right to use the underlying assets.

As a Lessor

Lease income from operating leases where the
Company is a lessor is recognised in income on a
straight-line basis over the lease term unless the
receipts are structured to increase in line with expected
general inflation to compensate the lessor for the
expected inflationary cost increases. The respective
leased assets are included in the balance sheet based
on their respective nature.

(xxi) Share-based payments

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

The cost of equity-settled transactions is determined
by the fair value at the date when the grant is made
using an appropriate valuation model. Further details
are given in Note No. 43

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

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

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

When the terms of an equity-settled award are modified,
the minimum expense recognised is the grant date fair
value of the unmodified award, provided the original
vesting terms of the award are met. An additional
expense, measured as at the date of modification, is
recognised for any modification that increases the total
fair value of the share-based payment transaction, or is
otherwise beneficial to the employee. Where an award
i s cancell ed by the enti ty or by the counterparty, a ny
remaining element of the fair value of the award is
expensed immediately through profit or loss.

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

(xxii) Segment Reporting

As per the compliance of Ind AS 108 operating
segments are identified based on reports reviewed
by CODM (chief operating decision-maker). Operating
segments can either be based on products/services or
on geographical basis. It is reported in a manner which
is consistent with the internal reporting provided to the
judgment of CODM.

2c. Significant accounting judgments, estimates and
assumptions

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

Judgements

In the process of applying the Company's accounting
policies, management has made the following
estimates and assumptions, which have the most
significant effect on the amounts recognised in the
standalone financial statements.

a. Revenue from contracts with customers

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

a) Identifying contracts with customers

The Company enters into Master service
agreement (MSA) with its customers
which define the key terms of the contract
with customers. However, the rates and
quantities to be supplied are separately
agreed through purchase orders. The
Management has exercised judgement to
determine that contract with customers
for the purpose of Ind AS 115 is MSA and
customer purchase orders for purpose of
identification of performance obligations
and other associated terms.

b) Identifying performance obligation

The Company enters into contract with
customers for sale of goods and tooling
income. The Company determined that both
the goods and tooling income are capable
of being distinct. The fact that the Company
regularly sells these goods on a standalone
basis indicates that the customer can benefit

from it on an individual basis. The Company
also determined that the promises to transfer
these goods are distinct within the context
of the contract. These goods are not input
to a combined item in the contract. Hence,
the tooling income and the sale of goods are
separate performance obligations.

c) Determination of timing of satisfaction of
performance obligation

The Company concluded that sale of goods
and tooling income is to be recognised at
a point in time because it does not meet
the criteria for recognising revenue over a
period of time. The Company has applied
judgement in determining the point in time
when the control of the goods and tooling
income are transferred based on the criteria
mentioned in the standard read along with
the contract with customers, applicable laws
and considering the industry practices.

Estimates and assumptions

The key assumptions concerning the future and
other key sources of estimation uncertainty at the
reporting date, which 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. The Company based its assumptions
and estimates on parameters available when the
standalone financial statements were prepared.
Existing circumstances and assumptions about future
developments, however, may change due to market
changes or circumstances arising that are beyond the
control of the Company. Such changes are reflected in
the assumptions when they occur.

a. Useful life of property, plant and equipment and
intangible assets

The Company uses its technical expertise along
with historical and industry trends for determining
the economic useful life of an asset/component
of an asset. The useful lives are reviewed
by management periodically and revised, if
appropriate. In case of a revision, the unamortised
amount is charged over the remaining useful life
of the assets.

b. Taxes

The Company applies significant judgement
in determining income tax provisions due to
uncertainties in the interpretation of complex tax
regulations, changes in tax laws, and the timing
and amount of future taxable income. Provisions

are recognised based on reasonable estimates,
considering past tax audit experience and
differing interpretations between the Company
and tax authorities.

Deferred tax assets, particularly those arising
from carry-forward losses, are recognised based
on the assessment of recoverability. Liabilities
are recorded for anticipated tax audit matters
based on estimates of additional taxes payable.
Any differences between actual outcomes and
earlier estimates are recognised in the period in
which such outcomes are determined, impacting
current and deferred tax balances.

c. Contingencies

The Company estimates the provisions and
liabilities and to the probability of expenses arising
claims from legal disputes/litigations that have
present obligations as a result of past events,
and it is probable that outflow of resources will be
required to settle the obligations. These provisions
are reviewed at the end of each reporting date and
are adjusted to reflect the current best estimates.

d. Defined Benefit Plans

The cost of defined benefit gratuity and other
post-employment benefits is determined using
actuarial valuations, which involve significant
assumptions such as discount rate, future salary
increases, mortality, and attrition. Due to the long¬
term nature and complexity of these obligations,
they are highly sensitive to changes in these
assumptions. All assumptions are reviewed
at each reporting date, and further details are
provided in Note 33.

e. Fair Value Measurement of Financial Instruments

When the fair values of financial assets and
financial liabilities recorded in the Balance Sheet
cannot be measured based on quoted prices in
active markets, their fair value is measured using
valuation techniques, including the discounted
cash flow model, which involve various
judgements and assumptions.

f. Provision for expected credit losses of trade
receivables and contract assets

The Company assesses impairment of trade
receivables and contract assets by creating
provisions based on an ageing analysis.
Receivables are grouped based on days past due,
and provision rates are applied to each ageing
bucket, reflecting historical credit loss experience
and observed default patterns.

These provision rates are reviewed at each
reporting date and adjusted, where necessary, to
reflect current and forward-looking information,
including anticipated economic conditions and
customer-specific factors. The assessment
of expected credit losses involves significant
judgement and is sensitive to changes in
assumptions and estimates.

g. Share-based payments

The share options outstanding account is used
to record the fair value of equity-settled share-
based payment transactions with employees. The
amounts recorded in share options outstanding
account are transferred to securities premium
upon exercise of stock options.

h. Provision for inventories

The Management reviews the inventory age
listing on a periodic basis. This review involves
comparison of the carrying value of the aged
inventory items with the respective net realisable
value. The purpose is to ascertain whether an
allowance is required to be made in the financial
statements for any obsolete slow-moving items
and net realisable value. The Management is
satisfied that adequate allowance for obsolete
and slow moving inventories has been made in
the financial statements.

2d. New and amended standards

The Company applied for the first-time certain
standards and amendments, which are effective for
annual periods beginning on or after 1^st April, 2024.
The Company has not early adopted any standard,
interpretation or amendment that has been issued but
is not yet effective.

a. 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 standalone financial statements
to understand how the currency not being
exchangeable into the other currency affects,
or is expected to affect, the entity's financial
performance, financial position and cash flows.

The amendments are effective for annual
reporting periods beginning on or after 1 ^st April,
2025. When applying the amendments, an entity
cannot restate comparative information.

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

b. Amendments to Ind AS 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 standalone financial statements are
approved for issue—not to demand repayment
for at least 12 months as a consequence of the
breach, this shall be treated as an adjusting event.
Accordingly, the entity is not required to classify
the liability as current.

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

The amendments do not have a material
impact on the Company's standalone financial
statements and have not had an impact on the
classification of Company's liabilities.

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

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

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

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

The mandatory temporary exception - the
use of which is required to be disclosed -
applies immediately. The remaining disclosure
requirements apply for annual reporting periods
beginning on or after 1 ^st April, 2025, but not
for any interim periods ending on or before
31^st March, 2026.

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

d. 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
standalone financial statements in understanding
the effects of supplier finance arrangements on
an entity's liabilities, cash flows and exposure to
liquidity risk.

As a result of implementing the amendments,
the Company has provided additional disclosures
about its supplier finance arrangement. Please
refer to Note 14.

2e. Standards notified but not yet effective

The new and amended 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
standalone 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

In accordance with Ind AS 1 currently applicable,
breach of an immaterial covenant is ignored deciding
in current vs. non-current classification of liabilities.
Also, in case of breach of a material covenant of a non¬
current loan on or before the reporting date, the entity
can obtain waiver from the lender after the reporting
date and continue to classify the loan as non-current
liability.

In accordance with changes to Ind AS 1 already notified
by the MCA, the above relaxations to classify loan as
non-current liability will not be available from 2026¬
27 onward and need to be applied retrospectively.
Consequently:

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

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

The Company is currently assessing the impact the
amendments will have on its standalone financial
statements.

2f. 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 standalone 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 and Impairment of
non-financial assets.

13. OTHER EQUITY (ALSO REFER TO STATEMENT OF CHANGES IN EQUITY)

Nature and purpose of reserves(a) Securities premium

Securities premium represents the excess consideration received by the Company over the face value of the shares
issued to the shareholders. This will be utilised in accordance with the provisions of the Companies Act, 2013.

(b) Retained earnings

Retained earnings are the profit that the Company has earned till date, less any transfers to general reserve, dividends
or other distributions paid to the Shareholders. Retained earning includes re-measurement (loss)/gain on defined
benefit plans, net of taxes that will not be reclassified to Statement of Profit and Loss. Retained earnings is a free
reserve available to the Company and eligible for distribution to shareholders, in case where it is having positive
balance representing net earnings till date.

(c) Share Based Payment Reserve

The share options-based payment reserve is used to recognise the grant date fair value of options issued to employees
under Employee stock option plan. Refer Note no 43.

(d) Cash Flow Hedge Reserve

The Company uses hedging instruments as part of its management of exposure to risks associated with foreign
currency. For hedging foreign currency, the Company uses foreign exchange forward contracts. To the extent these
hedges are effective, the change in fair value of the hedging instrument is recognised in the cash flow hedge reserve.
Amount recognised in the cash flow hedge reserve is reclassified to the statement of profit or loss when the hedged
item affects profit or loss.

e) Distribution made and proposed

a) The final dividend on equity shares of ' 3.00 per share, amounting to ' 2,828.58 Lakhs (31^st March, 2025: ' 4.00
per share, amounting to ' 3,768.20 Lakhs), was approved at the Annual General Meeting held on 29^th July, 2025.
The dividend amount was subsequently transferred to the Dividend Distribution Account on 31^st July, 2025, during
the year ended 31^st March, 2026.

b) The Board of Directors has proposed a dividend on equity shares of ' 4.00 per share, amounting to ' 3,774.02
(31^st March, 2025: ' 3.00 per share, amounting to ' 2,827.27 Lakhs), which is subject to approval of shareholders
at the ensuing Annual General Meeting. In accordance with applicable accounting standards, this proposed
dividend has not been recognised as a liability as at 31^st March, 2026.

The Company has complied with the provisions of Section 123 of the Companies Act, 2013 related to dividend
declared.

e) Aggregate number of equity shares issued as bonus, shares issued for bonus other than cash and shares bought back
during the period of five years immediately preceding the reporting date:¬
- During the year ended 31^st March, 2022, the Company had issued 4,47,49,500 equity shares of ' 2/- each aggregating

to ' 894.99 Lakhs as bonus shares.

f) Aggregate number of equity shares issued under Employee stock option scheme:¬
- During the year ended 31^st March, 2026, the Company has issued 1,08,261 Equity shares of Rs 2/- each at exercise

price of Rs 190/- each aggregating to ' 205.70 Lakhs. For details related to employee stock option, Refer Note 43.

Notes:

1. The Company has been sanctioned working capital limits in excess of ' Five Cr. in aggregate from banks during the
year on the basis of security of current assets of the Company. The quarterly returns/statements filed from time to
time by the Company with such banks are in aggrement with the books of accounts of the Company.

2. During the previous year, the Company established a supplier finance arrangement amounting to ' 9,624.62 Lakhs,
that was offered to one of the Company's supplier. For the supply chain financing agreement entered by the Company,
it provided no security to the finance provider. However, the cost of this arrangement was borne by the Company.
Also, the payment to the vendor were made at a credit period offered by the banks and not on the original terms of the
contract. Accordingly, the same was recognised as borrowings from the Bank as on 31^st March, 2025.

Code on Social Security

On 21^st November, 2025, the Central Government issued four separate notifications in the Official Gazette announcing
implementation of four Labour Codes, viz., 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. These four codes replace and consolidate
29 existing labour laws. Following the implementation of the four labour codes, the Central Government has pre-published
the draft rules on 31^st December, 2025 under the respective Labour Codes. The centre government has notified the rules on
8^th May, 2026. To ensure smooth implementation, the Ministry of Labour and Employment has also issued the Frequently Asked
Questions (FAQs) on the four codes.

The four codes prescribe an inclusive definition of the term 'wages', which among other matters is relevant for determination of
post-employment benefits including gratuity to all employees. In accordance with the definition, certain specified items forming
part of remuneration are not included in the wages and these excluded items cannot exceed 50% of total remuneration. If there
is an excess, then it is presumed that excess amount also forms part of wages. The four codes also introduce changes related
to leave entitlement and encashment for workers. Going forward, workers' leave balance in excess of 30 days will be encashed
at the end of each calendar year and workers will have a right to demand encashment for entire leave.

The Company has assessed the impact of these changes based on the best information available up to the date of authorisation
of the financial statements. The provisions currently in force do not have a material impact on the Company. However,
considering that this is an emerging area and that the Central Government has notified the relevant rules on 8^th May, 2026, while
the corresponding state-level rules are yet to be notified, the Company will continue to monitor further developments and will
account for any impact, as appropriate, based on future regulatory updates.

33. EMPLOYEE BENEFITS OBLIGATION
(I) Defined benefit schemes
(A) Gratuity (Funded)

The Company operates a gratuity plan administered through Life Insurance Corporation of India (LIC) under its Group
Gratuity Scheme. Every employee is entitled to a benefit equivalent to fifteen days' salary last drawn for each completed
year of service in line with the Payment of Gratuity Act, 1972. The same is payable at the time of separation from the
Company or retirement, whichever is earlier. The benefits vest after five years of continuous service. the Company
pays contribution to Life Insurance Corporation of India to fund its plan.

The reconciliation of opening and closing balances of the present value of the defined benefit obligations are as below:

The management assessed that the fair value of current financial assets and liabilities approximate their carrying value
largely due to the short term maturities of these instruments. Further, for non-current financial assets, the management
assessed that the fair value approximate their carrying value largely due to the fact that majority of balance is represented
by fixed deposits with bank.

There have been no transfers between Level 1, Level 2 and Level 3 during the year.

The Following method and assumptions were used to estimate the fair value:

- Investment in mutual funds traded in active markets are determined by reference to quotes from the financial institutions.

- the fair value of forward foreign exchange contracts and principal swap is determined using forward exchange rates
at the balance sheet date.

C Fair Value hierarchy:

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

(i) Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

(ii) Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly (i.e., as prices) or indirectly (i.e., derived from prices).

(iii) Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

37. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company's principal financial liabilities, other than derivatives, comprise borrowings and trade payables. The main
purpose of these financial liabilities is to finance the Company's working capital requirements. The Company has various
financial assets such as trade receivable, short term deposits and cash & cash equivalents, which arise directly from its
operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company's Board of Directors oversees the
management of these risks and also ensures that financial risk activities are governed by appropriate policies and
procedures and that financial risks are identified, measured and managed in accordance with the Company's policies and
risk objectives. The Board of Directors reviews and agrees policies for managing each of theses risks, which are summarised
below:

A. Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes
in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as
equity price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings, debt
and equity investments and derivative financial instruments. The sensitivity analyses in the following sections relate
to the position as at 31^st March, 2026 and 31^st March, 2025.

(i) Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of
changes in foreign exchange rates. The Company's exposure to the risk of changes in foreign exchange rates
relates primarily to the Company's operating activities by way of direct imports/exports. The Company evaluates
the exchange rate exposure arising from foreign currency transactions and follows established risk management
policies.

Foreign currency sensitivity

The following table represents the sensitivity to a reasonably possible change in USD, GBP and EURO exchange
rates, with all other variables held constant. The sensitivity analysis includes only outstanding foreign currency
denominated monetary items as mentioned above and adjusts their translation at the year end for a 5% change
in foreign currency rates. A positive number below indicates an increase in profit or equity and vice-versa.

(ii) Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in market interest rates.

The Company is exposed to interest rate risk on short-term and long-term floating rate instruments. The borrowings
of the Company are principally denominated in Indian Rupees with a mix of fixed and floating rates of interest.
The Company has a policy of selectively using interest rate swaps and other derivative instruments to manage its
exposure to interest rate movements. These exposures are reviewed by appropriate levels of management on a
regular basis. The exposure of company's borrowing to interest rate changes as reported to the management at
the end of reporting year are as follows:

(iii) Commodity price risk

The Company is affected by price volatility of certain commodities. The principal raw materials for the Company
products are alloy and carbon steel in the form of rounds and billets which are purchased by the Company from
the approved list of suppliers. Most of the input materials are procured from domestic vendors which is subject
to price negotiations. Due to significant volatility in prices of steel, the Company has agreed with its customers
for pass through of increase/decrease of prices of steel. There may be a lag effect in case of such pass-through
arrangements.

(iv) Equity price risk

The Company's non-listed equity securities are susceptible to market price risk arising from uncertainties about
future values of the investment securities. The Company's Board of Directors reviews and approves all equity
investment decisions. At the reporting date, the exposure to unlisted equity securities at cost was ' 90.00 Lakhs (As
at 31^st March, 2025: ' 10.00 Lakhs).

B. Credit Risk

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

Trade receivables

Customer credit risk is managed subject to the Company's established policy, procedures and control relating to
customer credit risk management. Credit quality of a customer is assessed and individual credit limits are defined
in accordance with this assessment. Outstanding customer receivables are regularly monitored by Management &
President Sales and corrective actions are taken. 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.

38. CAPITAL RISK MANAGEMENT

For the purpose of the Company's capital management, capital includes issued equity capital, security premium and all
other equity, and reserves attributable to the equity holders. The primary objective of the Company's capital management
is to maximise the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the
requirements of the financial covenants. The Company monitors capital using a gearing ratio, which is net debt divided by
total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings, less cash and cash
equivalents and other bank balances.

In order to achieve this overall objective, the Company's capital management, amongst other things, aims to ensure that it
meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements.
Any breach in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have
been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current year

No 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.

39. RECOGNITION OF GOVERNMENT GRANTS

Under the Invest Punjab Scheme, the Company is eligible for various incentives, including 100% exemption from electricity
duty and Infrastructure Development Fund (IDF), Net SGST incentive (calculated based on GST deposited and applicable
GST rates), 100% exemption/refund of stamp duty and Change of Land Use (CLU) fees, and 50% exemption on property tax.
Government grants are recognised on an accrual basis upon reasonable assurance. The export incentive income has been
recognised based on eligible exports made during the year and has been disclosed under Other Operating Revenue. During
the year, the Holding Company recognised ' 729.53 Lakhs (netted off expenses), ' 1,733.34 Lakhs (SGST/EGS incentives)
and ' 562.85 Lakhs (export incentives under the Duty Drawback Scheme and the Remission of Duties or Taxes on Export of
Products (RoDTEP) Scheme), with corresponding receivables of Rs 19.30 Lakhs, Rs 2,558.71 Lakhs and Rs 105.97 Lakhs
respectively.

40. HEDGING ACTIVITIES AND DERIVATIVESa) Derivatives not designated as hedging instruments:

The Company uses foreign exchange forward contracts to manage its exposure to risks associated with foreign currency.
These derivative contracts are not designated as hedging instrument in cash flow hedge and are entered into for years
consistent with foreign currency exposure of the underlying transactions, generally from one to twelve months.

b) Derivatives designated as hedging instruments:

Foreign exchange forward contracts measured at fair value through OCI are designated as hedging instruments in
cash flow hedges of forecast sales in EURO; and thereafter as a fair value hedge for the resulting receivables. These
forecast transactions are highly probable.

The foreign exchange forward contract balances vary with the level of expected foreign currency sales and changes in
foreign exchange forward rates.

46. The Company has used 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
at the application, except that, audit trail feature is enabled with effect from 11th December, 2025 for certain changes
made using privileged/administrative access rights to the SAP application and the underlying HANA database. Further, no
instance of audit trail feature being tampered with was noted in respect of the accounting software, wherever the audit log
was enabled. Additionally, the audit trail of relevant 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 those respective years.

47. 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 year.

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

(viii) the Company is not declared as wilful defaulter by any bank or financial institution.

48. EVENTS AFTER REPORTING DATE:

There are no events occurred after the reporting year which may impact the financial position as on 31^st March, 2026.