r. Provisions, contingent liabilities and contingent
assets

Provisions are recognized when present
obligations as a result of a past event will
probably lead to an outflow of economic
resources and amounts can be estimated
reliably. Timing or amount of the outflow
may still be uncertain. A present obligation
arises when there is a presence of a legal or
constructive commitment that has resulted
from past events, for example, legal disputes
or onerous contracts. Provisions are not
recognized for future operating losses.

Provisions are measured at the estimated
expenditure required to settle the present
obligation, based on the most reliable evidence
available at the reporting date, including the
risks and uncertainties associated with the
present obligation. Provisions are discounted
to their present values, where the time value of
money is material.

All provisions are reviewed at each
reporting date and adjusted to reflect the
current best estimate.

In those cases where the outflow of economic
resources as a result of present obligations
is considered improbable or remote, no
liability is recognized.

Contingent liability is disclosed for:

• Possible obligations which will be
confirmed only by future events not wholly
within the control of the Company or

• Present obligations arising from past events
where it is not probable that an outflow
of resources will be required to settle the
obligation or a reliable estimate of the
amount of the obligation cannot be made

• Contingent assets are not recognized.
However, when inflow of economic benefits
is probable, related asset is disclosed.

s. Employee benefits

Expenses and liabilities in respect of employee
benefits are provided in accordance with Indian
Accounting standard 19- Employee Benefits.

Defined contribution plans
Provident Fund

The Company makes contribution to statutory
provident fund in accordance with Employees
Provident Fund and Miscellaneous Provisions
Act, 1952. The plan is a defined contribution plan
and contribution paid or payable is recognized
as an expense in the period in which services
are rendered by the employee.

Defined benefit plans (gratuity)

The Company operates one defined benefit
plan for its employees, viz. gratuity. The
cost of providing benefits under this plan is
determined on the basis of actuarial valuation
at each year-end using the projected unit
credit method. Actuarial gain and loss for
the defined benefit plan is recognized in full
in the period in which they occur in other
comprehensive income.

Short-term employee benefits

Expense in respect of other short-term benefits
is recognized on the basis of the amount paid
or payable for the period during which services
are rendered by the employee.

Accumulated leave, which is expected to be
utilized within a period of next 12 months,
is treated as short term employee benefit.
The Company measures the expected cost of
such absences as the additional amount that it
expects to pay as a result of unused entitlement
that has accumulated at the reporting date.

t. Share Based payments

The Company operates equity-settled employee
share-based compensation plans, under which
the Company receives services from employees
as consideration for stock options towards
shares of the Company.

In case of equity-settled awards, the fair
value of stock options (at grant date) is
recognised as an expense in the Statement
of Profit and Loss within employee benefits
as employee share-based payment expenses
over the vesting period, with a corresponding
increase in share-based payment reserve (a
component of equity).

The total amount so expensed is determined by
reference to the grant date fair value of the stock
options granted, which includes the impact
of any market performance conditions and
non-vesting conditions but excludes the impact
of any service and non-market performance
vesting conditions. However, the non-market
performance vesting and service conditions are
considered in the assumption as to the number
of options that are expected to vest.

The expense so determined is recognised over
the requisite vesting period, which is the period
over which all of the specified vesting conditions
are to be satisfied. As at each reporting date, the
Company revises its estimates of the number of
options that are expected to vest, if required.

It recognises the impact of any revision to
original estimates in the period of change.
Accordingly, no expense is recognised for
awards that do not ultimately vest, except for

which vesting is conditional upon a market
performance / non-vesting condition. These are
treated as vested irrespective of whether or not
the market / non-vesting condition is satisfied,
provided that service conditions and all other
non-market performance are satisfied.

Where the terms of an award are modified,
in addition to the expense pertaining to the
original award, an incremental expense is
recognised for any modification that results in
additional fair value, or is otherwise beneficial
to the employee as measured at the date
of modification.

Where an equity-settled award is cancelled
(including due to non-vesting conditions not
being met), it is treated as if it is vested thereon,
and any un-recognised expense for the award
is recognised immediately.

u. 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. 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.

v. Segment reporting

Operating segments are reported in a
manner consistent with the internal reporting
done to the chief operating decision maker.
The Company operates in a single operating
segment and geographical segment.

w. Business Combinations

Business combinations are accounted for
using the acquisition method. The cost of an
acquisition is measured as the aggregate of
the consideration transferred measured at
acquisition date fair value and the amount of
any non-controlling interests in the acquiree.

For each business combination, the Company
elects whether to measure the non-controlling
interests in the acquiree at fair value or at
the proportionate share of the acquiree's
identifiable net assets. Acquisition-related costs
are expensed as incurred. At the acquisition
date, the identifiable assets acquired, and
the liabilities assumed are recognised at their
acquisition date fair values. For this purpose,
the liabilities assumed include contingent
liabilities representing present obligation and
they are measured at their acquisition fair
values irrespective of the fact that outflow
of resources embodying economic benefits
is not probable.

x. Recent pronouncements

During the year ended March 31, 2026,
The Ministry of Corporate Affairs ("MCA")
notified amendments to the following
existing standards:

a. Companies (Indian Accounting Standards)
Amendment Rules, 2025 issued in
May 2025 amended Ind AS 21 The Effect of
changes in Foreign Exchange Rates.

b. Companies (Indian Accounting standards)
Second Amendment Rules, 2025 issued
in August 2025 amended the following
accounting standards with effect
from April 1, 2025:

i. Ind AS 1 Presentation of
Financial statements

ii. Ind AS 7 Statement of Cash
Flows and. Ind As 107 Financial
Instruments Disclosures

iii. Ind AS 12 Income taxes

c. Companies. (Indian Accounting standards)
second Amendment Rules, 2026 issued in
March 2026 further amending Ind AS 12
Income taxes with retrospective effect.

The amendments do not have any significant
impact on the financial statements of the entity.

The entity has not applied the revisions to Ind
AS 1 Presentation of Financial Statements and
Ind AS 10 Events after the Reporting Period
as the date of effective implementation is
not yet notified

2.3 Significant accounting judgments, estimates and
assumptions

When preparing the financial statements
management undertakes a number of judgments,
estimates and assumptions about recognition
and measurement of assets, liabilities,
income and expenses.

The actual results are likely to differ from the
judgments, estimates and assumptions made
by management, and will seldom equal the
estimated results.

Information about significant judgments, estimates
and assumptions that have the most significant
effect on recognition and measurement of assets,
liabilities, income and expenses are discussed below:

Significant judgements:

Evaluation of indicators for impairment of non¬
financial assets

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

Sources of estimation uncertainty:Provisions

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 guarantees.
However, the actual future outcome may be
different from management's estimates.

Fair valuation of financial instruments

Management applies valuation techniques to
determine the fair value of financial instruments
(where active market quotes are not available).
This involves developing estimates and assumptions
consistent with how market participants would price
the instrument.

Recoverability of other financial assets

At each balance sheet date, based on historical
default rates observed over expected life, the
management assesses the expected credit loss on
outstanding other financial assets.

Allowance for doubtful trade receivables

The allowance for doubtful trade receivables
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.

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 used RAC market.
A worsening of the economic and financial situation
could cause a further deterioration in conditions
in the used RAC market compared to that taken
into consideration in calculating the allowances
recognised in the financial statements.

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
utility of certain software, IT equipment and other
plant and equipment.

Defined benefit obligations (DBO)

Management's estimate of the DBO is based on a
number of critical 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.

1 The gross carrying value includes leasehold land aggregating to Rs 11,765.54 lakhs allotted to the Company
for the period ranging from 90 to 99 years which has been recognised as Right of use assets.

2 The gross carrying value includes leasehold land aggregating Rs 679.93 lakhs on which construction of
factory building is yet to commence.

3 The Company has been converted from Private Limited Company to a Public Limited Company on June 28,
2023. The Company is in the process of getting the title deeds endorsed in the name of "Epack Durable
Limited" from "Epack Durable Private Limited" for all the land and properties.

(i) Valuation of land is carried out by market approach using sales comparison method wherein comparable
properties available for sale and/or sold are identified by conducting a market survey.

(ii) Present value of Building is derived from "Depreciated Replacement Cost Method" This method is based
upon the principle that the informed purchaser would pay no more than the cost to produce / replace a
substitute property with the same utility as the subject property. Depreciation amount calculated over
assumed project tenure, based on the age of the subject property, is deducted from the current cost
required to construct a similar building as on date.

Note:

The Company acquired the wholly owned subsidiary, EPACK Components Private Limited on August 01, 2021.
Purchase consideration for acquisition of net assets amounting to ' 3,358.83 lakhs was discharged vide issue
of equity shares worth ' 3,560.44 lakhs leading to a goodwill of ' 201.61 lakhs. This goodwill was impaired by
' 155.99 lakhs during the year ended March 31,2022. This subsidiary was subsequently merged with the company
vide NCLT order dated May 02, 2024.

(i) During the year ended March 31, 2025, the Company made additional investment in Epavo Electricals Private Limited
('Epavo') amounting to Rs. 1,435.20 lakhs by acquiring 1,43,52,000 shares having par value of Rs.10 each by way of rights
issue leading to increase in existing stake from 26% to 50%. Pursuant to Deed of Amendment dated September 30,

2024 to the Joint Venture Agreement dated July 25, 2020 between the Company and its Joint Venture Partner, Epavo has
become the Joint Venture of the Company w.e.f. closure of business hours on September 30, 2024.

The investment is strategic in nature and considering that the joint venture has successfully commenced commercial
production during the previous year and synergies expected from this investment, the Company is confident that the
value of investments is good and recoverable.

(ii) The Company incorporated a wholly owned foreign subsidiary, EPACK Durable Global Sales L.L.C-FZ, on September 26,

2025 in which it has not yet subscribed to the share capital as at March 31,2026.

i) The Company has discounted some of the trade receivables with banks. If the trade receivables are not
paid at maturity, the bank has the right to ask the Company to pay the unsettled balance. As the Company
has not transferred the significant risks and rewards relating to these trade receivables, it continues to
recognise the full carrying amount of the receivables and has recognised the amount received from banks
as Current Borrowings.

At the end of the reporting period, the carrying amount of the trade receivables that have been discounted
but have not been derecognised amounting to Rs 21,975.43 lakhs, (March 31, 2025 Rs. 6,028.01 lakhs) and
the equivalent amount has been shown under current borrowings (refer note 16(ii)).

c) Rights, preferences and restrictions attached to equity shares

The company has only one class of equity shares having a par value of ' 10/- per share. Each shareholder is
entitled for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval
of the shareholders in the ensuing Annual General Meeting except in the case of interim dividend. In the event of
liquidation of the company, the equity shareholders are entitled to receive the remaining assets of the company,
after distribution of all preferential amounts, in proportion of their shareholding.

Nature and purpose of reserves:

(i) Securities premium

Securities premium account has been created consequent to issue of shares. The reserve can be utilised in
accordance with the provisions of the Companies Act, 2013.

(ii) Retained earnings

Retained earnings are created from the profit / loss of the Company, as adjusted for distributions to owners,
transfers to other reserves, etc.

(iii) Employee's stock option outstanding account

The account is used to recognise the grant date value of options issued to employees under Employee Stock
Option Plan and adjusted as and when such options are exercised or otherwise expire.

(iv) Reserve generated from common control amalgamation

This reserve has been generated consequent to merger of wholly owned subsidiary with holding company.

34 Employee benefits

Defined contribution plans

The Company makes contributions, determined as a specified percentage of employee salaries, in respect of
qualifying employees towards Provident Fund, Employee State Insurance Scheme and Labour welfare fund which
are defined contribution plans. The Company has no obligations other than to make the specified contributions.
The contributions are charged to the statement of profit and loss as they accrue. The Company has recognised
following amounts as an expense towards contribution to these schemes:

Defined benefit plans

Gratuity:

The Company provides for gratuity for employees as per the ""The Code on Social Security, 2020"". Employees who
are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on
retirement/termination is the employee's last drawn wages per month computed proportionately for 15 days
multiplied by the number of years of service.

Notes:Income tax matters

a. Intimation u/s 143(1) of the Income tax Act, 1961 has been received with income tax demand amount of
Rs 33.70 lakhs for assessment year 2023-24 on account of lesser credit allowed for TDS against actual TDS
credit claimed as per rule 37BA of Income tax Act, 1961. Out of the above , Rs 13.76 lakhs has been adjusted
against the refund of assessment year 2023-24 and balance Rs 19.94 lakhs have been adjusted by the
department against the refund of assessment year 2024-25.

b. Assessment order has been passed with reduction in income tax refund amount of Rs 34.99 lakhs on account
of certain disallowances for assessment year 2021-22, during assessment u/s 143(3) of the Income tax Act,
1961. Appeal has been filed and pending with CIT (A).

c. Assessment order u/s 143(3) has been passed with income tax Demand of Rs. 2,903.48 lakhs for the
assessment year 2023-24 on account of certain disallowances, imposition of higher tax rate and disallowance
of credits for the Advance tax, TDS and TCS deposited. Company has filed a rectification application under
section 154 along with the application for stay on demand under section 220(6) of Income tax act 1961.
Further, an appeal has been filed and pending with CIT (A). Tax impact on certain disallowances amounting
to Rs 475.50 lakhs has been considered as Contingent Liability.

GST matters

a. GST deposited under protest amount to Rs 52.25 lakhs (for FY 2021-22 Rs 2.69 lakhs, FY 2024-25 Rs 35.71
lakhs, FY 2019-20 RS 13.85 lakhs) in respect to demand raised by respective GST authorities. Appeal has been
filed and pending with respective Appellate authority.

b. Order has been passed for non payment of GST including penalty amounting to Rs. 41.40 lakhs on Corporate
Guarantee provided by EPACK Components Private Limited (now merged with the Company) of Rs.11,500
lakhs to M/s Tata Capital Financial Services Limited for securing loan in favor of the Company without
consideration. The Company is in process of filing an appeal with Appellate authority.

c. On August 29, 2025, officials from the State Tax Department, Uttarakhand, initiated a search operation at the
business premises located at C-5, C-6, and C-7, Selaqui, Dehradun. The Company made a voluntary deposit
of '180 lakh as a precautionary measure. Subsequently, on November 27, 2025, the company received
a notice from the Jurisdictional State Tax Office. A written submission addressing the issues raised in the
notice was filed on February 4, 2026.The company is awaiting the order or the next date of hearing.

Custom matters

a. A Show Cause Notice (SCN) dated March 5, 2025 was issued by the Principal Commissioner of Customs,
Noida, proposing recovery of differential customs duty amounting to Rs. 8,101 lakhs on account of alleged
incorrect availment of preferential duty benefits on imports of copper tubes and pipes by the Company from
Vietnam during the period 2020 to 2023 under the ASEAN-India Free Trade Agreement (AIFTA). The Company
filed a writ petition before the Delhi High Court which was disposed off, vide its order dated April 28, 2026,
upholding the validity of the SCN issued by the Customs Authorities. Subsequent to the year ended March 31,
2026, the Company has filed Special Leave Petition (SLP) before the Supreme Court of India.

38 Capital management

The Company's capital management objectives are

- to ensure the Company's ability to continue as a going concern

- to provide an adequate return to shareholders

The Company monitors capital on the basis of the carrying amount of equity less cash and cash equivalents as
presented on the face of balance sheet.

Management assesses the Company's capital requirements in order to maintain an efficient overall financing
structure while avoiding excessive leverage. This takes into account the subordination levels of the Company's
various classes of debt. The Company manages the 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, issue new shares, or sell assets to reduce debt.

39 Leases

Information for leases where the Company is a lessee

The Company has leases for the factory lands and warehouses and offices. 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. The Company classifies its right-of-use assets in a consistent manner to its property,
plant and equipment.

(i) The maturity analysis of lease liabilities are disclosed in note 40 (C.2 Liquidity risk)

(ii) The Company has several lease contracts that include extension and termination options. These options
are negotiated by management to provide flexibility in managing the leased-asset portfolio and align with
the Company's business needs. Management exercises significant judgement in determining whether these
extension and termination options are reasonably certain to be exercised.

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 of in the
statement of profit and loss. The Company does not have any liability to make variable lease payments for the
right to use the underlying asset recognised in the financials.

The expense relating to payments not included in the measurement of the lease liability for short term leases for
year ended March 31, 2026 is ' 234.75 lakhs (March 31,2025'214.51 lakhs).

Total cash outflow for leases for the year ended March 31, 2026 was ' 2,266.66 lakhs (March 31, 2025
' 2,192.73 lakhs).

B Fair value hierarchy

The fair value of financial instruments as referred to in note (A) above has been classified into three categories
depending on the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices
in active markets for identical assets or liabilities [Level 1 measurements] and lowest priority to unobservable
inputs [Level 3 measurements].

The categories used are as follows:

Level 1: Quoted prices for identical instruments in an active market;

Level 2: Directly (i.e. as prices) or indirectly (i.e. derived from prices) observable market inputs, other than
Level 1 inputs; and

Level 3: Inputs which are not based on observable market data (unobservable inputs). Fair values are
determined in whole or in part using a net asset value or valuation model based on assumptions that are neither
supported by prices from observable current market transactions in the same instrument nor are they based on
available market data.

a. Valuation process and technique used to determine fair value

i) The derivative financial instruments are valued using forward exchange rates as at the balance sheet date.

ii) The fair value of financial liabilities is estimated by discounting future cash flows using current rates
applicable to instruments with similar terms, currency and credit risk.

B.2 Fair value of instruments measured at amortised cost

The management assessed that fair values of other current financial assets, cash and cash equivalents,
other bank balances, trade receivables, investments, short term borrowings, trade payables, lease liabilities
and other current financial liabilities approximate their respective carrying amounts largely due to the
short-term maturities of these instruments. The fair value of the financial assets and liabilities is included at
the amount at which the instrument could be exchanged in a current transaction between willing parties,
other than in a forced or liquidation sale. The following methods and assumptions were used to estimate
the fair values:

(i) Long-term fixed-rate receivables are evaluated by the Company based on parameters such as interest
rates, individual creditworthiness of the customer and other market risk factors.

(ii) The fair values of the Company's fixed interest-bearing receivables and lease liabilities are determined
by applying discounted cash flows ('DCF') method on contractual cash flows, using discount rate that
reflects the issuer's borrowing rate as at the end of the reporting period. The own non-performance risk
as at March 31, 2026 was assessed to be insignificant.

(iii) All the other long term borrowing facilities availed by the Company are variable rate facilities which
are subject to changes in underlying interest rate indices. Further, the credit spread on these facilities
are subject to change with changes in Company's creditworthiness. The management believes that
the current rate of interest on these loans are in close approximation from market rates applicable
to the Company. Therefore, the management estimates that the fair value of these borrowings are
approximate to their respective carrying values.

C Financial Risk Management

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 financial statements.

C.1 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, 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.

a) Credit risk management

The Company assesses and manages credit risk based on internal credit rating system. Internal credit rating
is performed for each class of financial instruments with different characteristics. The Company assigns the
following credit ratings to each class of financial assets based on the assumptions, inputs and factors specific
to the class of financial assets.

(i) Low credit risk

(ii) Moderate credit risk

(iii) High credit risk

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 as per contract. 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.

Cash and cash equivalents and bank deposits

Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly rated
banks and diversifying bank deposits and accounts in different banks across the country.

Trade receivables

Credit risk related to trade receivables are mitigated by taking bank guarantees/letter of credit from
customers where credit risk is high and taking insurance cover for receivables. The Company closely
monitors the credit-worthiness of the trade receivables through internal systems that are configured to
define credit limits of customers, thereby, limiting the credit risk to pre-calculated amounts. The provision
for expected credit losses on trade receivables are based on assumptions about risk of default and expected
loss rates. The Company uses judgement in making these assumptions and selecting the inputs, based on
the Company's past history, existing market conditions, current creditability of the party as well as forward
looking estimates at the end of each reporting period.

The Company provides for expected credit losses on loans and advances by assessing individual financial
instruments for expectation of any credit losses. Since this category includes loans and receivables of varied
natures and purpose, there is no trend that the Company can draw to apply consistently to entire population.
For such financial assets, the Company's policy is to provides for 12 month expected credit losses upon
initial recognition and provide for lifetime expected credit losses upon significant increase in credit risk.
The Company does not have any expected loss based impairment recognised on such assets considering
their low credit risk nature.

The Company measures the loss allowance for trade receivables at an amount equal to lifetime ECL.
The expected credit losses on trade receivables are estimated using a provision matrix by reference to past
default experience of the debtor and adjusted for factors that are specific to the debtors.

Other financial assets measured at amortised cost

Other financial assets measured at amortised cost includes loans and advances to employees, security
deposits and others. Credit risk related to these other financial assets is managed by monitoring the
recoverability of such amounts continuously, while at the same time internal control system are in place
ensure the amounts are within defined limits.

C.2 Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with
its financial liabilities that are settled by delivering cash or another financial asset. The Company's approach
to managing liquidity is to ensure as far as possible, that it will have sufficient liquidity to meet its liabilities
when they are due.

The Company had obtained fund and non fund based facilities from various banks. The Company also
constantly monitors funding positions available in the market with a view to maintain financial flexibility.

The tables below analyse the Company's financial liabilities into relevant maturity groupings based on their
contractual maturities.

The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12
months equal their carrying balances as the impact of discounting is not significant

C.4 Market risk
a) Foreign currency risk

The Company is exposed to foreign exchange risk arising from foreign currency transactions, primarily
with respect to the US Dollar, Chinese Yuan (CNY) and Japanese Yen (Yen). Foreign exchange risk arises
from recognised assets and liabilities denominated in a currency that is not the functional currency of the
Company. Considering the volume of foreign currency transactions, the Company has taken forward contracts
to manage its exposure. The Company does not use forward contracts and swaps for speculative purposes.

ii) Assets

The Company's fixed deposits are carried at amortised cost and are fixed rate deposits. They are
therefore not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount
nor the future cash flows will fluctuate because of a change in market interest rates.

c) Price risk

i) Exposure

The Company does not have exposure to price risk arises from investment as investment is measured
at amortised cost.

41 Revenue from Contracts with Customers
(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.

42 (a) On November 12, 2021, the Company obtained an approval for seeking incentives/ benefits of the 'Production
Linked Incentive (PLI) scheme for White goods (Air Conditioners and LEDs)', notified by the government on
April 16, 2021 read with PLI Scheme guidelines issued there under and as amended from time to time,
hereinafter referred as "PLI scheme". The Company had applied under the PLI scheme for manufacturing of
AC (Components) for which the approval was granted under the normal investment category with certain
conditions related to investments and sales. On February 21, 2024 the Company has received approval for
addition of eligible product under PLI scheme. The Company has included the sales of components other
than AC while calculating incremental sales of the current financial year within the limit as defined in the
guidelines issued by the department and the Company has furnished the self-certified quarterly review
reports (QRRs) required under the PLI scheme.

However, based on the assessment of the eligibility conditions the company has fulfilled the required
investment compliance but there is shortfall in the current year incremental sales, the Company is not
presently eligible for benefits under the PLI Scheme and accordingly the company has not accrued any
amount for the year ended March 31,2026.

The Company has received an amount of Rs 3,750.00 lakhs subsequently in April 2026 which was accrued
during the year ended March 31,2025. During the year ended March 31,2025 the company has received an
amount of Rs 3,000.00 lakhs and 1,500.00 lakhs which was accrued during the year ended March 31,2024
and March 31,2023 respectively.

(b) The Company was sanctioned a customised package under "Rajasthan Investment Promotion Scheme"
(RIPS) 2019 on May 23, 2022, for setting a component manufacturing facility of air conditioners and small
home appliances. During the financial year ended March 31, 2026, the company had applied for transition
from RIPS 2019 to RIPS 2024 .Subsequent to the year end i.e. on May 18, 2026, the Company has obtained
Entitlement certificate for Turnover linked Incentive under thrust sector category for 10 years and Electricity
Duty Exemption for 7 years under RIPS 2024 with an effective date from February 15, 2022. During the
financial year ended March 31, 2026 the company has recognised incentive income amounting to Rs.
2,177.36 lakhs under RIPS 2024. This includes amount of Rs. 495.66 lakhs pertaining to financial year 2025¬
26, and an amount of Rs 1,681.70 lakhs pertaining to earlier years.

43 Share Based Payments
a) Scheme details

The Company has introduced an Employee Stock Option Scheme 2023 ("ESOP SCHEME") to retain, incentivise
and motivate the eligible employees and also enable them to participate in the long term growth and success
of the Company.

The Employee Stock Option Scheme 2023 has been approved by a resolution dated July 29, 2023 at the General
Meeting of the Share-holders of the Company. The maximum number of Employee stock options under ""ESOP
SCHEME"" shall not exceed 15,68,148 employee stock options where one employee stock option would convert
into one equity share of face value of Rs 10 each.

Under the Employee Stock Option Scheme 2023, 9,83,863 options has been granted to the eligible employees of
the company at exercise price Rs 152 per option. Option shall be vest over a period of 4 years from the date of
grant i.e. 25% every year. Exercise period for vested option is 4 years from the date of final vesting of Options.

c) Fair value of option on the grant date

The fair value at grant date is determined using "Black Scholes Pricing Model" which takes into account the
exercise price, term of the option, share price at grant date, expected price volatility based on share prices of
comparable companies and the risk free interest rate.

44 Notes on IPO Proceeds

I During the year ended March 31, 2024, the Company has completed its initial public offer (IPO) of 27,828,351
equity shares of face value of ' 10 each at an issue price of ' 230 per share, comprising fresh issue of 17,391,304
shares and offer for sale of 10,437,047 shares by selling shareholders. Pursuant to the IPO, the equity shares
of the Company were listed on National Stock Exchange of India Limited (NSE) and BSE Limited (BSE) on
January 30, 2024.

II The Company has incurred ' 3,374.08 lakhs (including provision) (excluding taxes) as share issue expenses
and allocated such expenses between the Company ' 2,066.69 lakhs and selling shareholders ' 1,307.39 lakhs.
Such amounts were allocated based on terms agreed between the Company and selling shareholders and in
proportion to the total proceeds of the IPO. Out of Company's share of expenses of ' 2,066.69 lakhs, ' 2,066.20
lakhs has been adjusted to securities premium (refer note 15).

46 Additional Regulatory Information

(i) There are no proceedings initiated or pending
against the Company for holding any benami
property under the Prohibition of Benami
Property Transactions Act, 1988 and rules
made there under.

(ii) The Company has not been declared a wilful
defaulter by any bank or financial institution or
government or any government authority.

(iii) There are no transactions with the companies
struck off under section 248 of the Companies
Act, 2013 or section 560 of Companies Act,
1956 for the year ended March 31, 2026 and
year ended March 31, 2025.

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

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

(vi) No funds have been advanced or loaned
or invested (either from borrowed funds or
share premium or any other sources or kind
of funds) by the Company to or in any other
person(s) or entities, including foreign entities
("Intermediaries"), with the understanding,
whether recorded in writing or otherwise, that
the Intermediary shall, 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
provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries.

(vii) No funds have been received by the Company
from any person(s) or entities, including
foreign entities ("Funding Parties"), with
the understanding, whether recorded in
writing or otherwise, that the Company shall,
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.

(viii) Proper books of account as required by law
have been kept by the Company including the
daily back-up of the books of account and other
books and papers of the Company maintained
in electronic mode are kept in servers physically
located in India.

(ix) The Company is using accounting software
for maintaining its books of account wherein,
audit trail feature (edit log facility) as per the
requirements of proviso to Rule 3(1) of the
Companies (Accounts) Rules, 2014 for the
financial year ended March 31, 2026 and the
same was enabled and operated throughout
the year for all relevant transactions recorded
in the software at the application level.
However, audit trail was not enabled at the
database level to log any direct data changes.
Additionally, the audit trail that was enabled and
operated for the year ended March 31, 2025,
has been preserved by the Company as per the
statutory requirements for record retention.

(x) Money raised by way of term loans were applied
for the purposes for which these were obtained.

(xi) The Company has not surrendered or disclosed
any transactions, previously unrecorded as
income in the books of account, in the tax
assessments under the Income Tax Act, 1961
as income during the year.

(xii) The Company has not traded or invested in
crypto currency or virtual currency during the
year. Further the Company does not have any
advances in the nature of loans during the year.

(xiii) The quarterly returns/ statements of current
assets filed by the Company with banks/
financial institutions are in agreement with the
unaudited books of account.

47 There has been no delay in transferring amounts,
required to be transferred, to the Investor Education
and Protection Fund by the Company.

48 The Company did not have any long-term contracts
including derivative contracts for which there were
any material foreseeable losses as at March 31,
2026.

49 As at March 31, 2026, the carrying amount of trade
receivables includes ' 1,961.00 lakhs relating to one
customer which is overdue. After several follow

ups, the customer has not cleared the outstanding
dues and consequently a legal notice was served by
the Company, in response to which the customer
disputed the outstanding dues. During the year,
the Company filed a criminal complaint against the
customer with the Economic offences wing ("EOW").
Notwithstanding above, considering the terms of
the contract, validity of the sale transactions, long
standing customer relationship and the Company's
right to recover the receivable amount from the
customer, the Company believes that grounds
of dispute by the customer are not tenable and
there is a high probability of recovery of above
outstanding dues. Consequently, no allowance has
been recognised against the said outstanding dues
as at the reporting date.

50 The Company's primary business segment is
reflected based on principal business activities
carried on by the company. "Managing Director
& CEO" of Company has been identified as the
Chief Operating Decision Maker ('CODM') and
evaluates the Company's performance and
allocates resources based on analysis of the various
performance indicators of the Company as a single
unit. Therefore, there are no separate reportable
business segments as per Ind AS 108- Operating
Segments. The Company operates in one reportable
business segment i.e., manufacturing of consumer
durable products and is primarily operating in

India and hence, considered as single geographical
segment. Majority of the revenue is derived from
one geography and one external customer for year
ended March 31, 2026 amounting to Rs 56,605.19
lakhs (year ended March 31,2025 Rs 85,272.91 lakhs
from one geography and one external customer).

51 The Government of India has implemented the
four new labour codes- Codes on Wages 2019,
Industrial Relation Code 2020, Social Security Code
2020 and Occupational, Safety, Health and Working
Conditions Code 2020 effective November 21, 2025.
These codes were notified by Ministry of Labour
and Employment. The Company has assessed the
incremental impact of these changes on the basis of
information available, consistent with the guidance
provided by the Institute of Chartered Accountants
of India. The incremental impact primarily arising
due to change in wage definition has been recorded
under "Employee benefits expense" in the current
period. The Company continues to monitor the
finalisation of Central / State Rules and clarifications
from the Government on other aspects of the
Labour Code.

52 Events Occurring after the reporting period

Approval of financial statements- The financial
statements were authorised for issue by the Board
of Directors on May 20, 2026.