4.14 Provisions

Provisions are recognized when the Company has a present obligation as a result of past events, for which it is probable
that an outflow of resources will be required to settle the obligation and a reliable estimate of the amount can be made.
Provisions required to settle are reviewed regularly and are adjusted where necessary to reflect the current best estimates
of the obligation. Provisions are discounted to their present values, where the time value of money is material.

4.15 Contingent liabilities and contingent assets

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the
occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present
obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the
obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized
because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses its existence
in the financial statements.

Contingent assets are neither recognized nor disclosed. However, when realization of income is virtually certain, related
asset is recognized.

4.16 Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders
(after deducting attributable taxes) by the weighted average number of equity shares outstanding during the period. The
weighted average number of equity shares outstanding during the period is adjusted for events including a bonus issue,
right issue and share split transaction.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity
shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all
dilutive potential equity shares.

4.17 Operating segments

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision
maker. The chief operating decision maker is considered to be the Board of Directors who makes strategic decisions and is
responsible for allocating resources and assessing performance of the operating segments.

The Company's operating businesses are organized and managed separately according to the nature of products, with each
segment representing a strategic business unit that offers different products and serves different markets. The identified
segments are Manufacturing and Sale of Polyester film and Specialty Polymer.

Inter segment transfers

Inter segment transfers of goods, as marketable products produced by separate segments of the Company for captive
consumption, are not accounted for in the books of account of the Company. For the purpose of segment disclosures,
however, inter segment transfers have been taken at cost.

Allocation of common costs

Common allocable costs are allocated to each segment in proportion to the turnover of the segment, except where a more
logical allocation is possible.

Unallocated items

Corporate income and expense are considered as a part of un-allocable income and expense, which are not identifiable to
any business segment.

4.18 Significant management judgement and estimates

The preparation of the Company's financial statements requires management to make judgements, estimates and
assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the related disclosures.

Significant management judgements

Recognition of deferred tax assets - The extent to which deferred tax assets can be recognized is based on an assessment
of the probability of the Company's future taxable income against which the deferred tax assets can be utilized.

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

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

Significant estimates

Government grants - Grants receivables are based on estimates for utilisation of grant as per the regulations as well as
analysing actual outcomes on a regular basis and compliance with stipulated conditions. Changes in estimates or non¬
compliance of stipulated conditions could lead to significant changes in grant income and are accounted prospectively
over the balance life of asset.

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

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

Allowance for expected credit losses - The allowance for doubtful debts reflects management's estimate of losses inherent
in its credit portfolio. This allowance is based on Company's estimate of the losses to be incurred, which derives from
past experience with similar receivables, current and historical past due amounts, write-offs and collections, the careful
monitoring of portfolio credit quality and current and projected economic and market conditions. Should the present
economic and financial situation persist or even worsen, there could be a further deterioration in the financial situation of
the Company's debtors compared to that already taken into consideration in calculating the allowances recognised in the
financial statements.

Allowance for obsolete and slow-moving inventory - The allowance for obsolete and slow-moving inventory reflects
management's estimate of the expected loss in value and has been determined on the basis of past experience and historical
and expected future trends in the market. A worsening of the economic and financial situation could cause a further
deterioration in conditions compared to that taken into consideration in calculating the allowances recognized in the
financial statements.

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

Impairment of non-financial assets- If any indication exists, or when annual impairment testing for an asset is required,
the Company estimates the asset's recoverable amount. An asset's recoverable amount is the higher of an asset's or CGU's
fair value less costs of disposal and its value in use.

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate
that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair
value less costs of disposal, recent market transactions are taken into account. If no such transactions can be identified, an
appropriate valuation model is used. These calculations are corroborated by valuation multiples, quoted share prices for
publicly traded subsidiaries or other available fair value indicators.

4.19 Share based payment

Employees of the Company receive remuneration in the form of share-based payments in consideration of the services
rendered (equity settled transactions).

Under the equity settled share-based payment, the fair value on the grant date of the Options given to employees is
recognised as 'employee benefit expense' with a corresponding increase in equity over the vesting period. The fair value
of the options on the grant date is calculated using an appropriate valuation model.

The total expense is recognised over the vesting period, which is the period over which all of the specified vesting
conditions are to be satisfied. At the end of each period, the entity revises its estimates of the number of options that are
expected to vest based on the non-market vesting and service conditions. It recognises the impact of the revision to original
estimates, if any, in profit or loss, with a corresponding adjustment to equity. An additional expense is recognised for any
modification that increases the total fair value of the shares-based payment transactions, or is otherwise beneficial to the
employee as measured at the date of modification.

The dilutive effect of outstanding options is reflected as additional share dilution in the computation of diluted earnings
per share. When the options are exercised, the Company issues fresh equity shares.

5.1 Recent accounting pronouncements

The Ministry of Corporate Affairs ("MCA") notifies amendments to Indian Accounting Standards ('lnd AS') from time to
time under Section 133 of the Companies Act, 2013, read with the Companies (Indian Accounting Standards) Rules, 2015.

Standards and amendments effective for the year ended 31 March 2026

The following amendments became effective for annual reporting periods beginning on or after 1 April 2025 and have
been applied by the Company where relevant:

Amendments to lnd AS 21 - The Effects of Changes in Foreign Exchange Rates

The amendments prescribe accounting and disclosure requirements in situations where a currency is not exchangeable,
including guidance on estimating the spot exchange rate when exchangeability is lacking and related disclosures.

Amendments to lnd AS 1 - Presentation of Financial Statements

These amendments clarify the principles for classification of liabilities as current or non-current, particularly in relation to
the assessment of the right to defer settlement and the impact of covenants.

Amendments to lnd AS 12 - lncome Taxes

The amendments introduce a temporary exception from the recognition of deferred tax assets and liabilities arising from
the OECD's Pillar Two global minimum tax regime and prescribe additional disclosures relating to exposure to such taxes.

Amendments to lnd AS 7 - Statement of Cash Flows and lnd AS 107 - Financial lnstruments: Disclosures

These amendments introduce enhanced disclosure requirements for supplier finance arrangements.

lnd AS 19 - Employee Benefits and Labour Codes

During the year, the Government of lndia implemented the Code on Wages, 2019; the Code on Social Security, 2020; The
Industrial Relations Code, 2020 and the Occupational Safety, Health and Working Conditions Code, 2020 with effect from
2l November 2025.

The Company has evaluated the impact of the above amendments and concluded that they do not have any material
impact on the Company's financial statements for the year ended 31 March 2026, considering the nature and extent of the
Company's operations.

5.2 Standards issued but not yet effective lnd AS 1 - Presentation of Financial Statements

lf covenant breach occurs on or before the reporting date and the liability becomes payable on demand, it must be classified
as current, even if the lender subsequently agrees not to demand repayment. lt is classilied as current because, at the
reporting date, the entity does not have the right to defer settlement for at least 12 months. However, if the lender has
already provided-by the reporting date-a grace period extending at least 12 months beyond that date, during which the
breach can be rectified and repayment cannot be demanded, the liability is classified as non-current. This amendment is
to be applied retrospectively for annual reporting periods beginning on or after 1 April 2026, in accordance with lnd AS 8,
Accounting Policies, Changes in Accounting Estimates and Errors.

Growth rates:

The growth rates reflect the long-term average growth rates for the product lines and industries of the segments (all publicly available)
Discount rates:

The discount rates reflect appropriate adjustments relating to market risk and specific risk factors of related to the Group.
Basis such assessment done, management believes that the investment given would be recoverable and accordingly no
provision has been recorded in respect of recoverability of investment balance as at year end.

iv) Rights, preferences and restrictions attached to equity share

The Company has only one class of equity share having a par value of ^ 5 per share. Each equity shareholder is
entitled for one vote per share. The Company declares and pays dividend in Indian rupees (^). The final dividend
proposed by the Board of Director is subject to the approval of the shareholder in the ensuing annual general meeting.
In the event of liquidation of the Company, the holder of equity shares will be entitled to receive remaining assets of the
Company, after distribution of all preferential amounts. This distribution will be in proportion to the number of equity
shares held by the shareholder.

i) Nature and purpose of other reserves
Capital reserve

Capital reserve was created under the previous GAAP out of the profit earned from a specific transaction of capital nature.
Capital reserve is not available for the distribution to the shareholders.

Securities premium

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

Capital redemption reserve

The same has been created in accordance with provision of Companies Act, 2013 against redemption of preference shares.

General reserve

The Company is required to create a general reserve out of the profits when the Company declares dividend to shareholders.
Retained earnings

Retained earnings represents surplus in the Statement of Profit and Loss.

Share options outstanding account

The Company has allotted equity shares to certain employees under an employee share purchase scheme. The share
options outstanding account is used to recognise the value of equity settled share based payments provided to such
employees as part of their remuneration. Refer note 42 for further details of the scheme.

Effective portions of cash flow hedge

This comprises the effective portion of the cumulative net change in the fair value of cash flow hedging instruments related
to hedged transactions that have not yet occurred.

Money received against share warrant

Share warrants are issued to promoters and others in terms of the Guidelines for preferential issues viz., SEBI (Issue of
Capital and Disclosure Requirements), Since shares are yet to be allotted against the same, these are not reflected as part of
share capital but as a separate line item - 'Money received against share warrants. (Refer note below for details).

Pursuant to the approval granted by the Board of Directors at its meeting held on 14th September 2024, the Preferential
Issue Committee of the Board, in its meeting held on 16th September 2024, considered and approved the issuance of up to
1,10,75,941 Fully Convertible Warrants having a face value of T 5/- each at an issue price of T 158/- per warrant, aggregating
up to T 1,74,99,98,678/- (Rupees One Hundred Seventy-Four Crores Ninety-Nine Lakhs Ninety-Eight Thousand Six
Hundred Seventy-Eight Only). The issuance was duly approved by the shareholders of the Company through a postal
ballot dated 16th October 2024.

Upon receipt of T43.75 crores, representing 25% of the total consideration towards the subscription of the warrants from
all allottees, the Board of Directors, through a circular resolution dated 13th November 2024, allotted 1,10,75,941 Fully
Convertible Warrants at an issue price of T158/- per warrant. These warrants are convertible, at the option of the warrant
holder(s), in one or more tranches within 18 (Eighteen) months from the date of allotment, into an equivalent number of
fully paid-up equity shares of face value T 5/- each, aggregating a total subscription amount of T 1,74,99,98,678/- for cash
During the year, the Board of Directors, through a circular resolution dated 30 April 2025, approved the allotment of
35,44,302 fully paid-up equity shares of face value INR 5/- each at an issue price of INR 158/- per equity share, pursuant
to the conversion of an equivalent number of fully convertible warrants. Against such conversion, the Company received
consideration aggregating to INR 41,99,99,789.10/-.

I. Term loans

a) Outstanding loan from Tata Capital Limited, a loan with outstanding balance of ? NIL lacs (31 March 2025 : ? 94.69 lacs) was
sanctioned for infusion of funds in Subsidiary Company of borrower (Ester Filmtech Limited). The term loan is secured by
equitable mortgage by way of deposit of title deeds of land and corporate office building constructed thereupon in Gurgaon
and first and exclusive charge over the hypothecation of certain plant and equipments installed at factory premises at
Uttarakhand and further secured by irrevocable guarantee of its holding company and personal guarantee of Mr. Arvind
Singhania. The term loan bearing floating interest at the LTLR minus 9.10% per annum. The loan is repayable in 54 equal
monthly instalments starting from December 2020.

b) From Tata Capital Limited, a loan with outstanding balance of ? 512.40 lacs (31 March 2025 : ? 950.37 lacs) was sanctioned
for infusion of funds in Subsidiary Company of borrower (Ester Filmtech Limited), general corporate and capex. The
term loan bearing floating interest at the LTLR minus 11.25% per annum. The loan is repayable in 60 equal monthly
instalments starting from June 2022. #

c) From Tata Capital Limited, a loan with outstanding balance ? 451.35 lacs (31 March 2025 : ? 593.45 lacs) was sanctioned
for infusion of funds in Subsidiary Company of borrower (Ester Filmtech Limited),general corporate and capex. The term
loan is secured by equitable mortgage by way of deposit of title deeds of land and corporate office building constructed
thereupon in Gurgaon and further secured by irrevocable guarantee of its Holding Company and personal guarantee
of Mr. Arvind Singhania. The term loan bearing floating interest at the LTLR minus 11.25% per annum. The loan is
repayable in 84 equal monthly instalments starting from June 2022.

d) From Tata Capital Limited, a loan with outstanding balance ? 2,056.89 lacs (31 March 2025 : ? 2,304.34 lacs) was sanctioned
for infusion of funds in Subsidiary Company of borrower (Ester Filmtech Limited),general corporate and capex. The term
loan is secured by equitable mortgage by way of deposit of title deeds of land and corporate office building constructed
thereupon in Gurgaon and further secured by irrevocable personal guarantee of Mr. Arvind Singhania. The term loan
bearing floating interest at the LTLR minus 11.80% per annum. The loan is repayable in 84 equal monthly instalments
starting from October 2023.

e) From Tata Capital Limited of ? 1,843.48 lacs (31 March 2025 : ? 1,941.29) has been sanctioned for infusion of funds in
Subsidiary Company of borrower (Ester Filmtech Limited), general corporate and capex. The term loan is secured by
equitable mortgage by way of deposit of title deeds of land and corporate office building constructed thereupon in Gurgaon
and further secured by irrevocable personal guarantee of Mr. Arvind Singhania. The term loan bearing floating interest at
the LTPLR plus 1.70% per annum. The loan is repayable in 84 equal monthly instalments starting from October 2024.

f) From Bajaj Finance Limited of ? 1,197.49 lacs (31 March 2025 : ? 1,794.31 lacs) as loan for general corporate and capex
purpose. The term loan bearing floating interest linked to BFL IRR at the rate of 7.35% per annum. The term loan is
repayable in 20 equal quarterly instalments starting from May 2023 .##

g) From IDFC First Bank Limited of USD 8.919 million equivalent to ? 8329.46 lacs (31 March 2025 : ? 8,408.92 lacs) as
foreign currency term loan to takeover of Term loan from Shinhan Bank & Qatar National Bank amounting to ? 3333.33
lacs & ? 2571.43 lacs respectively and balance loan for reimbursement of capital expenditure. The term loans is secured
by first pari passu charge on fixed assets of the Company (both present and future) including factory land and building
at Pilibhit Road, Sohan Nagar, P.O. Charubeta, Khatima-262308, Distt Udham Singh Nagar, Uttarakhand with other
lenders, except fixed assets that are exclusively charged to Tata Capital Limited and second Pari passu charge on current
assets and further secured by irrevocable personal guarantee of Mr. Arvind Singhania .The term loan is also secured by
first charge on Debt Service Reserve Account (DSRA) to be created to meet debt service requirements of the project for
the ensuring 90 days principal and interest payment. The term loan bearing interest ranging from 9.73% to 9.75% per
annum. The term loan is repayable in 24 quarterly instalments starting September 2024.

h) From Bajaj Finance Limited of ? 599.18 lacs (31 March 2025 : ? 1,146.64 lacs) as loan for general corporate and capex
purpose. The term loan bearing floating interest linked to BFL IRR at the rate of 8.00% per annum. The term loan is
repayable in 60 equal monthly instalments starting from April 2022 .##

i) From Bajaj Finance Limited of ? 3,407.55 lacs (31 March 2025 : ? NIL) as loan for general corporate and capex purpose.
The term loan bearing floating interest linked to BFL IRR at the rate of 8.90% per annum. The term loan is repayable in 42
equal monthly instalments starting from March 2026 .##

# Above term loans are secured by first pari passu charge on fixed assets of the Company (both present and future)
including factory land and building at Pilibhit Road, Sohan Nagar, P.O. Charubeta, Khatima-262308, Distt Udham
Singh Nagar, Uttarakhand with other lenders, except fixed assets that are exclusively charged to Tata Capital Limited
& Vehicles and second Pari passu charge on current assets and further secured by irrevocable guarantee of its Holding
Company and personal guarantee of Mr. Arvind Singhania.

## Above term loans are secured by first pari passu charge on fixed assets of the Company (both present and future)
including factory land and building at Pilibhit Road, Sohan Nagar, P.O. Charubeta, Khatima-262308, Distt Udham
Singh Nagar, Uttarakhand with other lenders, except fixed assets that are exclusively charged to Tata Capital Limited
and & Vehicles and second Pari passu charge on current assets and further secured by irrevocable personal guarantee
of Mr. Arvind Singhania.

Working capital loans, bills discounting, acceptances and buyer's credit for raw materials : These loans are secured by
first charge by way of hypothecation of raw materials, finished goods, semi finished goods, stores and spares, book debts
and other receivables (both present and future) and further secured by irrevocable guarantees of its holding Company
(Wilemina Finance Corporation) and personal guarantee of Mr. Arvind Singhania. Working capital, bill discounting facilities,
acceptances and buyer's credit for raw materials are further secured by way of second charge in respect of immovable
properties and movable fixed assets except fixed assets that are exclusively charged to Tata Capital Limited & Vehicle.
The working capital loans from banks bear floating interest rate at MCLR plus ranging from 0.30% per annum to 2.60% per
annum.

The quarterly returns/statements of current assets filed by the Company with banks or financial institutions in relation to
secured borrowings / sanctioned loans, wherever applicable, are in agreement with the books of accounts

33. Fair value disclosures

(i) Fair value hierarchy

Financial assets measured at fair value in the statement of financial position are grouped into three levels of a fair
value hierarchy. The three levels are defined based on the observability of significant inputs to the measurement, as
follows:

Level 1: quoted prices (unadjusted) in active markets for financial instruments.

Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly or indirectly

Level 3: unobservable inputs for the asset or liability.

(ii) Valuation technique used to determine fair value

A. Specific valuation techniques used to value mutual funds include - the use of net asset value for mutual funds on
the basis of the statement received from investee party.

B. Derivative asset/ liability not designated as hedgesis measured using forward contract exchange rates at the
balance sheet rate as confirmed from banks/ financial institutions.

C. Derivative liabilities designated as hedges are Interest rate swap at the balance sheet rate as confirmed from banks/
financial institutions.

(i) Risk management

The Company's activities expose it to market risk, liquidity risk and credit risk. The Company's Board of Directors has
overall responsibility for the establishment and oversight of the Company's risk management framework. This note
explains the sources of risk which the entity is exposed to and how the entity manages the risk and the related impact
in the Standalone financial statements.

(A) Credit risk

Credit risk is the risk that a counterparty fails to discharge its obligation to the Company. The Company's exposure to
credit risk is influenced mainly by cash and cash equivalents, investments, trade receivables and other financial assets
measured at amortised cost. The Company continuously monitors defaults of customers and other counterparties and
incorporates this information into its credit risk controls. The Company continuously monitors defaults of customers
and other counterparties and incorporates this information into its credit risk controls.

a) Credit risk management
i) Credit risk rating

The Company assesses and manages credit risk of financial assets based on following categories arrived on the basis
of assumptions, inputs and factors specific to the class of financial assets.

A: Low credit risk
B: Moderate credit risk
C: High credit risk

All of the Company's loans at amortised cost are considered to have low credit risk, and the loss allowance, if any, is
limited to 12 months' expected losses. Management considers instruments to be low credit risk when they have a low
risk of default and the borrower has a strong capacity to meet its contractual cash flow obligations in the near term.
The Company's investments in mutual funds, bonds are considered to have a low risk and the loss allowance
recognised is based on the 12 months expected loss. Management considers "low credit risk" for listed bonds and
debentures to be those with high quality external credit ratings (investment grade). 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's maximum exposure to credit risk for the components of the balance sheet at 31 March 2026 and 31
March 2025 is the carrying amounts of financial assets.

Based on business environment in which the Company operates, a default on a financial asset is considered when the
counter party fails to make payments within the agreed time period (including extension). Loss rates reflecting defaults
are based on actual credit loss experience and considering differences between current and historical economic conditions.
Assets are written off when there is no reasonable expectation of recovery, such as a debtor declaring bankruptcy or
a litigation decided against the Company. The Company continues to engage with parties whose balances are written
off and attempts to enforce repayment. Recoveries made are recognised in statement of profit and loss.

(C) Market risk

Market risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market
prices. Market risk comprises two types of risk namely: currency risk and interest rate risk. The objective of market
risk management is to manage and control market risk exposures within acceptable parameters, while optimising the
return.

(i) Interest rate risk

Interest rate risk is the risk that the 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 borrowings with floating interest rates.

Interest rate risk exposure

The Company's variable rate borrowing is subject to interest rate risk. Below is the overall exposure of the borrowing:

The Company is exposed to interest rate risk on account of variable rate borrowings. The company's risk management
policy is to mitigate its interest rate exposure in accordance with the exposure limits advised from time to time.

Hedges of highly probable forecasted transactions

The Company has hedged its floating rate interest payment cash flows. Consequently, interest rate swap has been
designated in cash flow hedge relationship with borrowings. Hedged item and hedging instruments have been
identified in below paragraphs.

Hedge effectiveness is determined at inception of the hedge relationship and at every reporting period end through the
assessment of the hedged items and hedging instrument to determine whether there is still an economic relationship
between the two.

All derivative financial instruments used for hedge accounting are recognised initially at fair value and reported
subsequently at fair value in the standalone balance sheet.

To the extent the hedge is effective, changes in the fair value of derivatives designated as hedging instruments in cash
flow hedges are recognised in other comprehensive income and included within the cash flow hedge reserve in equity.
Any ineffectiveness in the hedge relationship is recognised immediately in profit or loss.

At the time the hedged item affects profit or loss, any gain or loss previously recognised in other comprehensive income
is reclassified from equity to profit or loss and presented as a reclassification adjustment within other comprehensive
income.

The Company determines the existence of an economic relationship between the hedging instrument and hedged item
based on the reference interest rates, tenors, repricing dates and maturities and the notional or par amounts

The Company assesses whether the derivative designated in each hedging relationship is expected to be effective in
offsetting changes in cash flows of the hedged item using the hypothetical derivative method.

In these hedge relationships the main source of ineffectiveness are:

The effect of the counterparty's and the Company's own credit risk on the fair value of the swaps, which is not
reflected in the change in the fair value of the hedged cash flows attributable to the change in interest rates; and
differences in repricing dates between the swaps and the borrowings.

The Company does not frequently reset hedging relationships because both the hedging instrument and the hedged
item frequently change (ie, the entity does not use a dynamic process in which neither the exposure nor the hedging
instruments used to manage that exposure remain the same for a long period). If it did, then it would be exempt from
providing the disclosures required by paragraphs 23A and 23B of Ind AS 107, but would instead provide information
about the ultimate risk management strategy, how it reflects its risk management strategy in its hedge accounting
and designations, and how frequently hedging relationships are discontinued and restarted. If the volume of these
hedges is unrepresentative of normal volumes during the year (ie. the volume at the reporting date does not reflect
the volumes during the year), then the entity would disclose that fact and the reason it believes the volumes are
unrepresentative

(ii) Foreign exchange risk

Foreign exchange risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes
in foreign exchange rates. The Company is exposed to the effects of fluctuation in the prevailing foreign currency
exchange rates on its financial position and cash flows. Exposure arises primarily due to exchange rate fluctuations
between the functional currency and other currencies from the Company's operating, investing and financing activities.
The Investment and Borrowing Committee evaluates foreign exchange rate exposure arising from foreign currency
transactions on periodic basis and follows appropriate risk management policies.

The Company has international transactions and is exposed to foreign exchange risk arising from foreign currency
transactions (imports and exports). Foreign exchange risk arises from recognised assets and liabilities denominated in
a currency that is not the Company's functional currency.

Sensitivity

The following table illustrates the sensitivity of profit in regards to the Company's financial assets and financial
liabilities and the USD/INR exchange rate, EUR/INR exchange rate and GBP/INR exchange rate 'all other things
being equal'. It assumes a /- 5.00% change of the INR/USD exchange rate for the year ended at 31st March, 2026
(2025: 5.00%). A /- 5.00% change is considered for the INR/EUR exchange rate (2025: 5.00%). A /- 5.00 % change is
considered for the INR/GBP exchange rate (2025: 5.00 %).

Derivative contracts

The Company is exposed to exchange rate risk that arises from its foreign exchange revenues and expenses, primarily
in US Dollars, Euros etc. The Company uses foreign currency forward contracts ("derivatives") to mitigate its risk
of changes in foreign currency exchange rates. The counterparty for these contracts is generally a bank or a financial
institution.

The Company is also exposed to interest rate risk as most of the borrowings are carries interest rate linked to SOFR.
The Company has put in place a Board approved policy to manage and hedge risks associated with borrowings which
prescribes the structure and organisation for management of associated risks. The Company's risk management policy
which aims to hedge interest rate arising from its borrowings.

The Company has hedged its floating rate interest payment cash flows. Consequently, interest rate swap has been
designated in cash flow hedge relationship with borrowings. Hedged item and hedging instruments have been
identified in below paragraphs.

Hedges of highly probable forecasted transactions

The Company has hedged its floating rate interest payment cash flows. Consequently, interest rate swap has been
designated in cash flow hedge relationship with borrowings. Hedged item and hedging instruments have been
identified in below paragraphs.

(iii) Price risk

The Company's exposure to price risk arises from investments held and classified as FVTPL. To manage the price risk
arising from investments, the Company diversifies its portfolio of assets.

Sensitivity analysis

Profit or loss and other equity is sensitive to higher/ lower prices of instruments on the Company's profit for the year -

35. Segment reporting

The Company operates in two segments manufacturing and sale of polyester film and speciality polymer. The
Company has chosen business segments considering the dominant source of nature of risks and returns, internal
organisation, management structure and the manner chief operating decision maker (CODM) review the financial
performance of the business for allocating the economic resources. A brief description of the reportable segment is as
follows:

Polyester chips and film: Polyester chips and films that are used in primarily flexible packaging and other industrial
application. Polyester film is known for high tensile strength, chemical and dimensional stability, transparency,
reflective, gas and aroma barrier properties and electrical insulation. PET chips is the main raw material used to
manufacture the film.

Speciality Polymer: Specialty Polymers are Polymers that are high performance material catering to the global needs
of the industries / applications such as carpets, textiles, food and beverages, consumer electronics, industrial etc.
which cannot be met by commodity PET grades.

* It includes the investments in equity shares of subsidiaries and joint venture and mutual funds.

** Other unallocable assets includes common property plant and equiplments, land, cash and cash equivalents etc
*** Other unallocable liabilities includes deferred tax liability, other provisions and trade payables etc.

Information about major customer

During the year ended 31 March 2026 revenue of approximately 12.39 % (31 March 2025: 14.47%) was derived from
a single external customer in the polyester chips and film business and approximately 27.74% in 31 March 2026 (31
March 2025: 22.79%) was derived from a single external customer in the speciality polymer business.

Non-current assets

Non-current assets of the Company (property, plant and equipment, capital work-in-progress, intangible assets) are
held in India.

The Company has identified its operating segments as below:

a) Polyester chips and film

b) Speciality polymers

Following an operational realignment during the year and a revised approach by the Chief Operating Decision Maker
(CODM) for performance evaluation and resource allocation, the recycled Polyester Chips (rPET) business has been
reclassified from the "Speciality Polymers" segment to the "Polyester Chips and Film" segment. In accordance with the
requirements of Ind AS 108 Operating Segments, the segment information for prior periods has been restated to reflect
this change, ensuring consistency and comparability across reporting period.

36. Capital management

The Company's objectives when managing capital are to:

- To ensure Company's ability to continue as a going concern, and

- To provide adequate return to shareholders

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. Breaches in meeting the financial covenants would attract penalty/ financial interest. There have been
few breaches in the financial covenants due to decline in performance of the Company. However, default in financial
covenant doesn't lead to calling of loan by banks.

The Company manages its capital structure and makes adjustments to it in the light of changes in economic conditions
and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company
may adjust the amount of dividends paid to shareholders, return capital to shareholders or issue new shares.
The amounts managed as capital by the Company are summarised as follows:

*Includes dividend amounts transferred to the Unpaid Dividend Account in accordance with applicable statutory
requirements.

The Board of Directors of the Company at its meeting held on 13 May 2026, has recommended final dividend of
^ 0.25 per equity share for the year ended 31 March 2026, subject to the approval of shareholders of the Company
in the forthcoming Annual General Meeting.

37. Related party transactions

In accordance with the requirements of Ind AS 24 the names of the related parties where control exists/ able to exercise
significant influence along with the aggregate transactions and year end balances with them as identified and certified by
the management are given below:

* The amounts indicated as contingent liability or claims against the Company only reflect the basic value.
Interest, penalty if any or legal costs, being indeterminable are not considered.

^A These claims represents various civil cases filed against the Company by various vendors and ex-employees of
the Company.

# In view of the amendment in The Payment of Bonus Act, 1965 notified on 01 January 2016, the Company has
made a provision for incremental bonus for the financial year i.e. for 2015-16. Though the amendment was
effective retrospectively from 01 April 2014, the Company on the legal advice has decided not to consider it on
account of interim order of various Hon'ble High Courts allowing stay on the amendment with retrospective
effect till the time its constitutional validity is established.

$ The Company is contesting the above demands and the management, based on legal advice, believe that its
position will be upheld in the appellate process. Hence, no tax expense has been accrued in the standalone
financial statements for these tax demands.

The Company's leased asset consist of leases for land and building . With the exception of short-term leases and leases
of low-value underlying assets, each lease is reflected on the balance sheet as a right-of-use asset and a lease liability.

Each lease generally imposes a restriction that, unless there is a contractual right for the Company to sublease the asset
to another party, the right-of-use asset can only be used by the Company. Some leases contain an option to extend the
lease for a further term. The Company is prohibited from selling or pledging the underlying leased assets as security.

Right of use asset as at 31 March 2026 amounting to ^ 55.33 lacs (31 March 2025 amounting to ^ 56.09 lacs) are for the
leases of equipments and lease of land.

A Lease payments not recognised as a liability

The Company has elected not to recognise a lease liability for short term leases (leases with an expected term of 12
months or less) or for leases of low value assets. Payments made under such leases are expensed on a straight-line
basis. The Company does not have any liability to make variable lease payments for the right of use the underlying
asset recognised in the standalone financial statement.

The expense relating to payments not included in the measurement of the lease liability for short term leases is ^7.48
lacs (31 March 2025 amounting to ^ 7.84 lacs).

B Total cash outflow for leases for the year ended 31 March 2026 was ^ 0.15 lacs (year ended 31 March 25 was ^ 0.15 lacs).
C Maturity of lease liabilities

The lease liabilities are secured by the related underlying assets. Future minimum lease payments were as follows:

E Expected future cash outflow on account of variable lease payments as at 31 March 2026 is of ^ Nil.

F The total future cash outflows as at 31 March 2026 for leases that had not yet commenced is of ^ Nil.

40. Employee benefits obligations
I Gratuity

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of
continuous service gets a gratuity on departure at fifteen day salary (last drawn salary) for each completed year of
service in terms of the provisions of the Payments of Gratuity Act, 1972. The Company provides for liability in its
books of accounts based on actuarial valuation.

The following table summaries the components of net benefit expense recognised in statement of profit and loss
and the amount recognised in the balance sheet for gratuity benefit:

II Provident fund

Provident fund for certain eligible employees is managed by the Company through trust "Ester Industries Limited
Employee's Provident Trust" in line with the Provident Fund and Miscellaneous Provision Act, 1952. The plan
guarantees interest at the rate as notified by the Provident Fund authority. The contribution by the employer and
employee together with the interest thereon are payable to the employee at the time of separation from the Company
or retirement, whichever is earlier. The benefits vests immediately on rendering of the services by the employee. In
this regard, actuarial valuation as at 31 March 2026 was carried out by actuary to find out value of projected defined
benefit obligation arising due to interest rate guarantee by the Company towards provident fund. For the remaining
employees of the company, contributions towards the Provident Fund are made directly to the Employees' Provident
Fund Organisation (EPFO), in accordance with the applicable statutory provisions.

41 Revenue from Contracts with Customers

Indian Accounting Standard 115 Revenue from Contracts with Customers ("Ind AS 115"), establishes a framework for
determining whether, how much and when revenue is recognised and requires disclosures about the nature, amount,
timing and uncertainty of revenues and cash flows arising from customer contracts. Under Ind AS 115, revenue is
recognised through a 5-step approach:

(i) Identify the contracts with customer;

(ii) Identify separate performance obligations in the contract;

(iii) Determine the transaction price;

(iv) Allocate the transaction price to the performance obligations; and

(v) Recognise revenue when a performance obligation is satisfied.

(a) Disaggregation of revenue

The Company has performed a disaggregated analysis of revenues considering the nature, amount, timing and
uncertainty of revenues. This includes disclosure of revenues by geography and timing of recognition.

^(e) In the normal course of business, the payment terms given to domestic customers ranges from 0 to 60 days and for
export customers, it ranges from 0 to 105 days.

(f) All the contracts are for periods of one year or less or are billed based on time incurred. As per practical expedient
given under Ind AS 115, the transaction price allocated to these unsatisfied contracts is not disclosed.

42 (i). Share based payment

Employee Stock Option Plan (ESOP) 2021

The Nomination and Remuneration Committee of the Company had at its meeting held on 01 April 2021, approved
grant of 2,48,179 (face value of ^ 5/- per share) to the eligible employees of the Company under the of Ester Share
based expenses Plan-2021, at an exercise price of ^ 105 per option (being 10% less that the closing price at NSE on
31 March 2021 i.e. immediately preceding the grant date), each option being convertible in to one Equity Share of
the Company upon vesting subject to the Securities and Exchange Board of India (Share Based Employee Benefits
and Sweat Equity) Regulations, 2021 and the terms and conditions of the Ester Share based expenses Plan-2021.
The terms and conditions of the grant as per the Ester Share based expenses Plan-2021 are as under:

A. Vesting period

Vesting of the options shall take place as per the following schedule:

- 10% of options shall vest at the end of a period of 1 (one) year from date of grant

- 20% of options shall vest at the end of a period of 2 (two) years from date of grant

- 30% of options shall vest at the end of a period of 3 (three) years from date of grant

- 40% of options shall vest at the end of a period of 4 (four) years from date of grant

42 (ii). Employee Stock Option Plan (ESOP) 2024

(A) Grant -1

The Nomination and Remuneration Committee of the Company had at its meeting held on 14 January 2025,
approved grant of 1,43,742 (face value of ^ 5/- per share) to the eligible employees of the Company under the
of "Ester Industries Limited Employees Stock Option Plan 2024 ("ESOP 2024"), at an exercise price of ^ 114 per
option (being 20% less that the closing price at NSE on 13 January 2025 i.e. immediately preceding the grant date),
each option being convertible in to one Equity Share of the Company upon vesting subject to the Securities and
Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 and the terms and
conditions of the "Ester Industries Limited Employees Stock Option Plan 2024 ("ESOP 2024").

The terms and conditions of the grant as per the "Ester Industries Limited Employees Stock Option Plan 2024
("ESOP 2024") are as under:

A. Vesting period

Vesting of the options shall take place on the basis of time based Vesting condition or performance based vesting
condition or a combination of both as per the following schedule:

Time based vesting for 50 % Options:

-12.5 % of the Options will vest on 14th January 2026 i.e. post completion of 1 (One) year from date of Grant

-12.5 % of the Options will vest on 14th January 2027 i.e. post completion of 2 (Two) years from date of Grant
-12.5 % of the Options will vest on 14th January 2028 i.e. post completion of 3 (Three) years from date of Grant

-12.5 % of the Options will vest on 14th January 2029 i.e. post completion of 4 (Four) years from date of Grant
Performance based Vesting for 50 % of Options:

-Up to 12.5 % of the Options will vest on 14th January 2026 i.e. post completion of 1 (One) year from date of Grant
-Up to 12.5 % of the Options will vest on 14th January 2027 i.e. post completion of 2 (Two) years from date of Grant
-Up to 12.5 % of the Options will vest on 14th January 2028 i.e. post completion of 3 (Three) years from date of Grant
-Up to 12.5 % of the Options will vest on 14th January 2029 i.e. post completion of 4 (Four) years from date of Grant

B. Exercise period

Maximum 5 (five) years from the date of respective Vesting for the particular Option.

(B) Grant -2

The Nomination and Remuneration Committee of the Company had at its meeting held on 8 January 2026,
approved grant of 19,188 (face value of ^ 5/- per share) to the eligible employees of the Company under the
of "Ester Industries Limited Employees Stock Option Plan 2024 ("ESOP 2024"), at an exercise price of ^ 79 per
option (being 20% less that the closing price at NSE on 7 January 2026 i.e. immediately preceding the grant date),
each option being convertible in to one Equity Share of the Company upon vesting subject to the Securities and
Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 and the terms and
conditions of the "Ester Industries Limited Employees Stock Option Plan 2024 ("ESOP 2024").

The terms and conditions of the grant as per the "Ester Industries Limited Employees Stock Option Plan 2024
("ESOP 2024") are as under:

A. Vesting period

Vesting of the options shall take place on the basis of time based Vesting condition or performance based vesting
condition or a combination of both as per the following schedule:

Time based vesting for 50 % Options:

-12.5 % of the Options will vest on 08th January 2027 i.e. post completion of 1 (One) year from date of Grant
-12.5 % of the Options will vest on 08th January 2028 i.e. post completion of 2 (Two) years from date of Grant
-12.5 % of the Options will vest on 08th January 2029 i.e. post completion of 3 (Three) years from date of Grant
-12.5 % of the Options will vest on 08th January 2030 i.e. post completion of 4 (Four) years from date of Grant
Performance based Vesting for 50 % of Options:

-Up to 12.5 % of the Options will vest on 08th January 2027 i.e. post completion of 1 (One) year from date of Grant
-Up to 12.5 % of the Options will vest on 08th January 2028 i.e. post completion of 2 (Two) years from date of Gran
-Up to 12.5 % of the Options will vest on 08th January 2029 i.e. post completion of 3 (Three) years from date of Grant
-Up to 12.5 % of the Options will vest on 08th January 2030 i.e. post completion of 4 (Four) years from date of Grant

B. Exercise period

Maximum 5 (five) years from the date of respective Vesting for the particular Option.

¹ Total debt represents short-term and long-term borrowings and total lease liabilities

² Net Profit after taxes Non-cash operating expenses like depreciation and other amortizations Interest on term
loans and lease liabilities other adjustments like loss on sale of fixed assets etc.

³ Interest and lease payments during the year Principal repayments during the year

⁴ Tangible net worth (Total equity - other intangible assets) Total debt Deferred tax liabilities

⁵ Cost of material consumed Consumption of stores and spares Consumption of packing material Power and
fuel (Closing inventories of raw materials and Store and spares - opening inventories of raw materials and Store
and spares).

⁶Gain/ loss on sale and change in fair value of mutual funds and commercial papers are considered for the purpose
of computing return on investment.

⁷Cost of investment does not include bank deposits
Reason where change more than 25%

# Due to lower scheduled repayments during the current year as compared to last financial year.

* Due to decrease in profits during the current year as compared to last financial year
**Due to lower returns from equity-oriented mutual funds compared to the previous year.

45. Audit trail

The Ministry of Corporate Affairs (MCA) has prescribed a requirement for companies under the proviso to Rule 3(1)
of the Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules 2021 requiring
companies, which uses accounting software for maintaining its books of account, shall use only such accounting
software which has a feature of recording audit trail of each and every transaction, creating an edit log of each
change made in the books of account along with the date when such changes were made and ensuring that the audit
trail cannot be disabled.

During the current year, the audit trail (edit logs) feature for any direct changes made at the database level was not
enabled for the accounting software SAP S/4 HANA used for maintenance of books of account. Furthermore, the
audit trail has been preserved by the Company as per the statutory requirements for record retention from the date
the audit trail was enabled for the accounting software

46. Additional regulatory information not disclosed elsewhere in the standalone financials statements.

(a) No proceedings have been initiated on or are pending against the Company for holding benami property under the
Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

(b) The Company does not have any transactions with struck off companies under section 248 of the Companies Act,
2013 or section 560 of the Companies Act, 1956, except for the parties mentioned below

The above information regarding struck off companies has been determined to the extent such parties have been
identified on the basis of information available with the Company.

* These companies are struck off in the current year

# Dividend payment of T60 to Venlon Polyster Film Ltd.

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

(d) The Company has complied with the number of layers of companies prescribed under the Companies Act, 2013.

(e) The Company has not entered into any scheme of arrangement which has an accounting impact on current or
previous financial year.

(f) The Company does not have any charges or satisfaction which is yet to be registered with Registrar of Companies
(ROC) beyond the statutory period.

(g) No funds have been advanced or loaned or invested (either from borrowed funds or securities premium or any
other sources or kind of funds) by the Company to or in any persons or entities, including foreign entities ('the
intermediaries'), with the understanding, whether recorded in writing or otherwise, that the intermediary shall,
whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or
on behalf of the Company ('the Ultimate Beneficiaries') or provide any guarantee, security or the like on behalf the
Ultimate Beneficiaries.

(h) No funds have been received by the Company from any persons or entities, including foreign entities ('the Funding
Parties'), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether
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 provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries.

(i) 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.

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

(k) The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets
or both during the current or previous year.

47 The previous year numbers have been regrouped/ reclassified wherever necessary to conform to current year
presentation.

48 Effective November 21, 2025, the Government of India has consolidated multiple existing labour legislations into a
unified framework comprising four labour Codes collectively referred to as the 'New Labour Codes'. Under Ind AS
19, changes to employee benefit plans arising from legislative amendments constitute a plan amendment, requiring
recognition of past service cost immediately in the statement of profit and loss. The New Labour Codes have resulted
in one time increase in provision for employee benefits. The estimated incremental impact of the same amounting
to T253.53 Lacs on account of gratuity (T192.84 Lacs) and leave encashment (T60.69 Lacs) has been recognised in the
Statements of Profit and Loss for the year ended March 2026. The Company continues to monitor the finalisation
of Central/State Rules and any clarifications from the Government on other aspects of the New Labour Codes and
would provide appropriate accounting effect in the relevant period on the basis of such developments as needed.

49 No subsequent event occurred post balance sheet date which requires adjustment in the standalone financial
statements for the year ended 31 March 2026.