r. Provisions and contingent liabilities
- General Provisions

R provision is recognised when the Company has
a present obligation (legal or constructive) as a
result of past event, it is probable that an outflow
of resources embodying economic benefits will
be required to settle the obligation and a reliable
estimate can be made of the amount of the
obligation. These estimates are reviewed at each
reporting date and adjusted to reflect the current
best estimates. If the effect of the time value
of money is material, provisions are discounted
using a current pre-tax rate that reflects, when
appropriate, the risks specific to the liability.
When discounting is used, the increase in the
provision due to the passage of time is recognised
as a finance cost.

- Warranty Provisions

Provisions for warranty -related costs are
recognised when the product is sold or service
provided. Provision is based on technical
estimates by the management based on past
trends. The estimate of such warranty-related
costs is revised annually

- Contingent liabilities

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

Provisions, contingent liabilities, contingent
assets and commitments are reviewed at each
balance sheet date.

s. Cash and cash equivalents

Cash and cash equivalents comprise cash at bank
and in hand and short-term deposits with an original
maturity of three months or less, which are subject to
an insignificant risk of changes in value.

t. Financial instruments

A financial instrument is any contract that gives rise to
a financial asset of one entity and a financial liability
or equity instrument of another entity.

i. Financial Assets

Initial recognition and measurement

All financial assets are recognised initially at fair value
plus, in the case of financial assets not recorded at fair
value through profit or loss, transaction costs that are
attributable to the acquisition of the financial asset.
Financial assets are classified, at initial recognition
and subsequently measured at amortised cost, fair
value through other comprehensive income (OCI), and
fair value through profit or loss.

The classification of financial assets at initial
recognition depends on the financial asset's contractual
cash flow characteristics and the Company's business

model for managing them. With the exception of trade
receivables that do not contain a significant financing
component or for which the Company has applied the
practical expedient, the Company initially measures
a financial asset at its fair value plus, in the case of
a financial asset not at fair value through profit or
loss, transaction costs. Trade receivables that do not
contain a significant financing component or for which
the Company has applied the practical expedient are
measured at the transaction price determined under
Ind AS 115. Refer to the accounting policies on Revenue
from contracts with customers.

In order for a financial asset to be classified and
measured at amortised cost or fair value through
OCI, it needs to give rise to cash flows that are 'solely
payments of principal and interest (SPPI)' on the
principal amount outstanding. This assessment is
referred to as the SPPI test and is performed at an
instrument level.

The Company's business model for managing financial
assets refers to how it manages its financial assets
in order to generate cash flows. The business model
determines whether cash flows will result from
collecting contractual cash flows, selling the financial
assets, or both.

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

Subsequent measurement

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

- Debt instruments at fair value through profit and
loss (FVTPL)

- Debt instruments at fair value through other
comprehensive income (FVTOCI)

- Debt instruments at amortized cost

- Equity instruments

Where assets are measured at fair value, gains and
losses are either recognised entirely in the statement
of profit and loss (i.e. fair value through profit or loss),
or recognised in other comprehensive income (i.e.
fair value through other comprehensive income). For
investment in debt instruments, this will depend on
the business model in which the investment is held.
For investment in equity instruments, this will depend

on whether the Company has made an irrevocable
election at the time of initial recognition to account
for equity instruments at FVTOCI.

Debt instruments at amortized cost

A Debt instrument is measured at amortized cost if
both the following conditions are met:

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

- Contractual terms of the asset give rise on
specified dates to cash flows that are solely
payments of principal and interest (SPPI) on the
principal amount outstanding.

This category is most relevant to the Company.
After initial measurement, such financial assets are
subsequently measured at amortized cost using the
effective interest rate (EIR) method. Amortised cost
is calculated by taking into account any discount or
premium on acquisition and fees or costs that are
an integral part of EIR. EIR is the rate that exactly
discounts the estimated future cash receipts over the
expected life of the financial instrument or a shorter
period, where appropriate, to the gross carrying
amount of the financial asset. When calculating the
effective interest rate, the Company estimates the
expected cash flows by considering all the contractual
terms of the financial instrument but does not consider
the expected credit losses. The EIR amortization is
included in finance income in profit or loss. The losses
arising from impairment are recognised in the profit
or loss. This category generally applies to trade and
other receivables.

Debt instruments at fair value through OCI

A Debt instrument is measured at fair value through
other comprehensive income if following criteria
are met:

- Business Model Test: The objective of
financial instrument is achieved by both
collecting contractual cash flows and for selling
financial assets.

- Cash flow characteristics test: The contractual
terms of the Debt instrument give rise on
specific dates to cash flows that are solely
payments of principal and interest on principal
amount outstanding.

Debt instrument included within the FVTOCI category
are measured initially as well as at each reporting date
at fair value. Fair value movements are recognised
in the other comprehensive income (OCI), except

for the recognition of interest income, impairment
gains or losses and foreign exchange gains or losses
which are recognised in statement of profit and loss.
On derecognition of asset, cumulative gain or loss
previously recognised in OCI is reclassified from the
equity to statement of profit and loss. Interest earned
whilst holding FVTOCI financial asset is reported as
interest income using the EIR method.

Debt instruments at FVTPL

FVTPL is a residual category for financial instruments.
Any financial instrument, which does not meet the
criteria for amortized cost or FVTOCI, is classified
as at FVTPL. In addition, the Company may elect to
designate a debt instrument, which otherwise meets
amortized cost or FVTOCI criteria, as at FVTPL.
However, such election is allowed only if doing so
reduces or eliminates a measurement or recognition
inconsistency (referred to as 'accounting mismatch').
The Company has not designated any debt instrument
as at FVTPL.

Debt instruments included within the FVTPL category
are measured at fair value with all changes recognised
in the statement of profit and loss.

Investments in mutual funds

Investment in mutual funds are measured at fair value
through profit or loss (FVTPL).

Equity Investment

All equity investments in scope of Ind AS 109 are
measured at fair value. Equity instruments which
are held for trading and contingent consideration
recognised by an acquirer in a business combination
to which Ind AS 103 applies are classified as at FVTPL.
For all other equity instruments, the Company may
make an irrevocable election to present in other
comprehensive income subsequent changes in the
fair value. The Company makes such election on an
instrument-by-instrument basis. The classification is
made on initial recognition and is irrevocable.

If the Company decides to classify an equity
instrument as at FVTOCI, then all fair value changes
on the instrument, excluding dividends, are recognized
in the OCI. There is no recycling of the amounts from
OCI to P&L, even on sale of investment. However, the
Company may transfer the cumulative gain or loss
within equity.

Equity instruments included within the FVTPL category
are measured at fair value with all changes recognized
in the P&L.

Derecognition

A financial asset (or, where applicable, a part of a
financial asset or part of a Company of similar financial
assets) is primarily derecognised (i.e. removed from
the Company's statement of financial position) when:

Ý The rights to receive cash flows from the asset have
expired, or

Ý the Company has transferred its rights to receive
cash flows from the asset or has assumed an
obligation to pay the received cash flows in full
without material delay to a third party under a "pass
through" arrangement and either;

Ý the Company has transferred the rights to receive
cash flows from the financial assets or

Ý the Company has retained the contractual right to
receive the cash flows of the financial asset, but
assumes a contractual obligation to pay the cash
flows to one or more recipients.

Where the Company has transferred an asset, the
Company evaluates whether it has transferred
substantially all the risks and rewards of the
ownership of the financial assets. In such cases, the
financial asset is derecognised. Where the entity has
not transferred substantially all the risks and rewards
of the ownership of the financial assets, the financial
asset is not derecognised.

Where the Company has neither transferred a financial
asset nor retains substantially all risks and rewards of
ownership of the financial asset, the financial asset is
derecognised if the Company has not retained control
of the financial asset. Where the Company retains
control of the financial asset, the asset is continued to
be recognised to the extent of continuing involvement
in the financial asset.

Impairment of financial assets

In accordance with HID AS 109, the Company applies
expected credit losses (ECL) model for measurement
and recognition of impairment loss on the following
financial asset and credit risk exposure:

Ý Financial assets that are debt instruments, and
are measured at amortised cost e.g., loans, debt
securities, deposits, trade receivables and bank
balance,

Ý Financial assets that are debt instruments and are
measured as at FVTOCI;

The Company follows "simplified approach" for
recognition of impairment loss allowance on:

Ý Trade receivables or contract revenue receivables;

Ý Ril lease receivables resulting from the transactions
within the scope of IIID RS 116

Under the simplified approach, the Company does
not track changes in credit risk. Rather, it recognizes
impairment loss allowance based on lifetime ECLs at
each reporting date, right from its initial recognition.
The Company uses a provision matrix to determine
impairment loss allowance on the portfolio of trade
receivables. The provision matrix is based on its
historically observed default rates over the expected
life of trade receivable and is adjusted for forward
looking estimates. Rt every reporting date, the
historical observed default rates are updated and
changes in the forward looking estimates are analysed.

For recognition of impairment loss on other financial
assets and risk exposure, the Company determines
whether there has been a significant increase in the
credit risk since initial recognition. If credit risk has
not increased significantly, 12-month ECL is used to
provide for impairment loss. However, if credit risk
has increased significantly, lifetime ECL is used. If, in
subsequent period, credit quality of the instrument
improves such that there is no longer a significant
increase in credit risk since initial recognition, then
the Company reverts to recognizing impairment loss
allowance based on 12- months ECL.

Lifetime ECL are the expected credit losses resulting
from all possible default events over the expected
life of a financial instrument. The 12-month ECL is a
portion of the lifetime ECL which results from default
events that are possible within 12 months after the
reporting date.

ECL is the difference between all contractual cash
flows that are due to the Company in accordance
with the contract and all the cash flows that the entity
expects to receive (i.e., all cash shortfalls), discounted
at the original EIR. When estimating the cash flows, an
entity is required to consider:

Ý All contractual terms of the financial instrument
(including prepayment, extension, call and
similar options) over the expected life of the
financial instrument.

As a practical expedient, the Company uses a provision
matrix to determine impairment loss allowance on
portfolio of its trade receivables. The provision matrix
is based on its historically observed default rates
over the expected life of the trade receivables and
is adjusted for forward-looking estimates. At every
reporting date, the historical observed default rates
are updated and changes in the forward-looking
estimates are analysed.

ii. Financial liabilities:

Initial recognition and measurement

Financial liabilities are classified at initial recognition,
as financial liabilities at fair value through profit or loss,
loans and borrowings, and payables, net of directly
attributable transaction costs. The Company financial
liabilities include loans and borrowings including bank
overdraft, trade payables, trade deposits, retention
money, and liabilities towards services, sales incentive
and other payables.

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

Trade Payables

These amounts represent liabilities for goods and
services provided to the Company prior to the end
of financial year which are unpaid. Trade and other
payables are presented as current liabilities unless
payment is not due within 12 months after the
reporting period. They are recognised initially at fair
value and subsequently measured at amortized cost
using EIR method.

Financial liabilities at fair value through profit or
loss

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

Gains or losses on liabilities held for trading are
recognised in the statement of profit and loss.

Financial liabilities designated upon initial recognition
at fair value through profit or loss are designated
as such at the initial date of recognition, and
only if the criteria in inD RS 109 are satisfied. For
liabilities designated as FVTPL, fair value gains/
losses attributable to changes in own credit risk
are recognised in OCI. These gains/ losses are not
subsequently transferred to profit and loss. However,
the Company may transfer the cumulative gain or loss
within equity. All other changes in fair value of such
liability are recognised in the statement of profit and
loss. The Company has not designated any financial
liability as at fair value through profit and loss.

Loans and borrowings

Borrowings are initially recognised at fair value,
net of transaction cost incurred. After initial
recognition, interest-bearing loans and borrowings
are subsequently measured at amortized cost using
the EIR method. Gains and losses are recognised in
statement of profit and loss when the liabilities are
derecognised as well as through the EIR amortization
process. Amortized cost is calculated by taking into
account any discount or premium on acquisition and
fees or costs that are an integral part of the EIR. The
EIR amortization is included as finance costs in the
statement of profit and loss.

Derecognition

A financial liability is derecognised when the obligation
under the liability is discharged or cancelled or expires.
When an existing financial liability is replaced by
another from the same lender on substantially
different terms, or the terms of an existing liability
are substantially modified, such an exchange or
modification is treated as the derecognition of the
original liability and the recognition of a new liability.
The difference in the respective carrying amounts is
recognised in the statement of profit and loss.

Embedded derivatives

An embedded derivative is a component of a hybrid
(combined) instrument that also includes a non¬
derivative host contract with the effect that some of
the cash flows of the combined instrument vary in a
way similar to a standalone derivative. An embedded
derivative causes some or all of the cash flows that
otherwise would be required by the contract to
be modified according to a specified interest rate,
financial instrument price, commodity price, foreign
exchange rate, index of prices or rates, credit rating
or credit index, or other variable, provided in the case
of a nonfinancial variable that the variable is not
specific to a party to the contract. Reassessment only
occurs if there is either a change in the terms of the
contract that significantly modifies the cash flows that
would otherwise be required or a reclassification of
a financial asset out of the fair value through profit
or loss.

If the hybrid contract contains a host that is a financial
asset within the scope of Ind AS 109, the Company
does not separate embedded derivatives. Rather, it
applies the classification requirements contained in
Ind AS 109 to the entire hybrid contract. Derivatives
embedded in all other host contracts are accounted
for as separate derivatives and recorded at fair value
if their economic characteristics and risks are not
closely related to those of the host contracts and the
host contracts are not held for trading or designated
at fair value though profit or loss. These embedded
derivatives are measured at fair value with changes
in fair value recognised in profit or loss, unless
designated as effective hedging instruments.

Offsetting of financial instruments:

Financials assets and financial liabilities are offset
and the net amount is reported in the balance sheet
if there is a currently enforceable legal right to offset
the recognised amounts and there is an intention to
settle on a net basis, to realize the assets and settle
the liabilities simultaneously.

Reclassification of financial assets:

The Company determines classification of financial
assets and liabilities on initial recognition. After
initial recognition, no reclassification is made for
financial assets which are equity instruments and
financial liabilities. For financial assets which are debt
instruments, a reclassification is made only if there is
a change in the business model for managing those
assets. Changes to the business model are expected
to be infrequent. The Company's senior management
determines change in the business model as a result
of external or internal changes which are significant to
the Company's operations. Such changes are evident to
external parties. A change in the business model occurs
when the Company either begins or ceases to perform
an activity that is significant to its operations. If the
Company reclassifies financial assets, it applies the
reclassification prospectively from the reclassification
date which is the first day of the immediately next
reporting period following the change in business
model. The Company does not restate any previously
recognised gains, losses (including impairment gains
or losses) or interest.

Derivative financial instruments and hedge
accounting

Initial recognition and subsequent measurement

The Company uses derivative financial instruments,
such as forward currency contracts, to hedge its
foreign currency risks. Such derivative financial
instruments are initially recognised at fair value on
the date on which a derivative contract is entered
into and are subsequently re-measured at fair value.
Derivatives are carried as financial assets when the
fair value is positive and as financial liabilities when
the fair value is negative.

Any gains or losses arising from changes in the fair
value of derivatives are taken directly to profit or loss,
except for the effective portion of cash flow hedges (if
any), which is recognised in OCI and later reclassified
to profit or loss when the hedge item affects profit or
loss or treated as basis adjustment if a hedged forecast
transaction subsequently results in the recognition of
a non-financial asset or non-financial liability.

u. Fair value measurement

The Company measures financial instruments at fair
value at each balance sheet date.

Fair value is the price that would be received to sell
an asset or paid to transfer a liability in an orderly
transaction between market participants at the
measurement date. The fair value measurement is
based on the presumption that the transaction to sell
the asset or transfer the liability takes place either:

Ý In the principal market for asset or liability, or

Ý In the absence of a principal market, in the most
advantageous market for the asset or liability.

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

The fair value of an asset or liability is measured using
the assumptions that market participants would use
when pricing the asset or liability, assuming that
market participants act in their economic best interest.

A fair value measurement of a non- financial asset
takes into account a market participant's ability to
generate economic benefits by using the asset in its
highest and best use or by selling it to another market
participant that would use the asset in its highest and
best use.

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

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

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

Level 2- Valuation techniques for which the lowest
level input that is significant to the fair value
measurement is directly or indirectly observable

Level 3- Valuation techniques for which the lowest
level input that is significant to the fair value
measurement is unobservable

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

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

v. Dividends

The Company recognises a liability to pay dividend to
equity holders of the Company when the distribution
is authorised, and the distribution is no longer at
the discretion of the Company. As per the corporate
laws in India, a distribution is authorised when it
is approved by the shareholders. A corresponding
amount is recognised directly in equity.

w. non-current assets held for sale

The Company classifies non-current assets and
disposal groups as held for sale if their carrying
amounts will be recovered principally through a sale
rather than through continuing use.

Non-current assets and disposal groups classified
as held for sale are measured at the lower of their
carrying amount and fair value less costs to sell. Costs
to sell are the incremental costs directly attributable
to the disposal of an asset (disposal group), excluding
finance costs and income tax expense.

The criteria for held for sale classification is regarded
as met only when the sale is highly probable, and the
asset or disposal group is available for immediate sale
in its present condition. Actions required to complete
the sale/ distribution should indicate that it is unlikely
that significant changes to the sale will be made or that
the decision to sell will be withdrawn. Management
must be committed to the sale and the sale expected
within one year from the date of classification.

For these purposes, sale transactions include
exchanges of non-current assets for other non-current
assets when the exchange has commercial substance.
The criteria for held for sale classification is regarded
met only when the assets or disposal group is available
for immediate sale in its present condition, subject
only to terms that are usual and customary for sales
of such assets (or disposal groups), its sale is highly
probable; and it will genuinely be sold, not abandoned.
The Company treats sale of the asset or disposal group
to be highly probable when:

Ý The appropriate level of management is committed
to a plan to sell the asset (or disposal group),

Ý An active programme to locate a buyer and complete
the plan has been initiated (if applicable),

Ý The asset (or disposal group) is being actively
marketed for sale at a price that is reasonable in
relation to its current fair value,

Ý The sale is expected to qualify for recognition as
a completed sale within one year from the date of
classification, and

Ý Actions required to complete the plan indicate that
it is unlikely that significant changes to the plan will
be made or that the plan will be withdrawn.

Property, plant and equipment and intangible are not
depreciated, or amortised assets once classified as
held for sale. Assets and liabilities classified as held
for sale are presented separately from other items in
the balance sheet.

X. Exceptional Item

The Company recognises exceptional item when items
of income and expenses within Statement of Profit and
Loss from ordinary activities are of such size, nature
or incidence that their disclosure is relevant to explain
the performance of the Company for the period.

2.1 Significant accounting judgements,
estimates and assumptions

The preparation of the financial statements requires
management to make judgements, estimates and
assumptions that affect the reported amounts
of revenues, expenses, assets and liabilities, and
the accompanying disclosures, and the disclosure
of contingent liabilities. Uncertainty about these
assumptions and estimates could result in outcomes
that require a material adjustment to the carrying
amount of assets or liabilities affected in future periods.

Judgements

In the process of applying the Company's accounting
policies, there are no significant judgements
established by the management.

Revenue from contracts with customers

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

Determining method to estimate variable
consideration and assessing the constraint

Certain contracts for the sale of goods include volume
rebates that give rise to variable consideration. In
estimating the variable consideration, the Company
is required to use either the expected value method
or the most likely amount method based on which
method better predicts the amount of consideration
to which it will be entitled.

In estimating the variable consideration for the sale of
goods with volume rebates, the Company determined
that using a combination of the most likely amount
method and expected value method is appropriate.
The selected method that better predicts the amount
of variable consideration was primarily driven by
the number of volume thresholds contained in the
contract. The most likely amount method is used for
those contracts with a single volume threshold, while
the expected value method is used for contracts with
more than one volume threshold.

Before including any amount of variable consideration
in the transaction price, the Company considers
whether the amount of variable consideration is
constrained. The Company determined that the
estimates of variable consideration are not constrained
based on its historical experience, business forecast
and the current economic conditions. In addition,
the uncertainty on the variable consideration will be
resolved within a short time frame.

Estimates and assumptions

The key assumptions concerning the future and other
key sources of estimation uncertainty at the reporting
date, that have a significant risk of causing a material
adjustment to the carrying amounts of assets and
liabilities within the next financial year, are described
below. The Company based its assumptions and
estimates on parameters available when the financial
statements were prepared. Existing circumstances and
assumptions about future developments, however,
may change due to market changes or circumstances
arising that are beyond the control of the Company.

Such changes are reflected in the assumptions when
they occur.

Useful life of property, plant and equipment

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

- Defined benefit plans

The cost of the defined benefit gratuity plan
and other post-employment defined benefits
are determined using actuarial valuations. An
actuarial valuation involves various assumptions
that may differ from actual developments in
the future. These include the determination of
the discount rate, future salary increases and
mortality rates. Due to the complexities involved
in the valuation and its long-term nature, a
defined benefit obligation is highly sensitive to
changes in these assumptions. All assumptions
are reviewed at each reporting date. Further
details about gratuity obligations are given in
Note 31.

- Leases

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.

- Provisions and Contingencies

The assessments undertaken in recognising
provisions and contingencies have been made in
accordance with the applicable Ind AS. A provision
is recognized if, as a result of a past event, the
Company has a present legal or constructive
obligation that can be estimated reliably, and it
is probable that an outflow of economic benefits
will be required to settle the obligation. Where
the effect of time value of money is material,
provisions are determined by discounting the
expected future cash flows. The Company has
significant capital commitments in relation to
various capital projects which are not recognized
on the balance sheet. In the normal course of

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

- Taxes

Uncertainties exist with respect to the
interpretation of complex tax regulations,
changes in tax laws, and the amount and timing
of future taxable income. Given the nature of
business differences arising between the actual
results and the assumptions made, or future
changes to such assumptions, could necessitate
future adjustments to tax income and expense
already recorded. The Company establishes
provisions, based on reasonable estimates. The
amount of such provisions is based on various
factors, such as experience of previous tax audits
and different interpretations of tax regulations
by the taxable entity and the responsible tax
authority. Such differences of interpretation
may arise on a wide variety of issues depending
on the conditions prevailing in the respective
domicile of the companies.

2.2 new and amended standards

The Company applied for the first-time certain
standards and amendments, which are effective for
annual periods beginning on or after 1 April 2025.
The Company has not early adopted any standard,
interpretation or amendment that has been issued but
is not yet effective.

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

The Ministry of Corporate Affairs (MCA) notified
the Companies (Indian Accounting Standards)
Amendment Rules, 2025, which amend Ind AS
21, The Effects of Changes in Foreign Exchange
Rates to specify how an entity should assess
whether a currency is exchangeable and how

it should determine a spot exchange rate when
exchangeability is lacking.

The amendments also require disclosure of
information that enables users of its financial
statements to understand how the currency
not being exchangeable into the other currency
affects, or is expected to affect, the entity's
financial performance, financial position and cash
flows. The amendments are effective for annual
reporting periods beginning on or after 1 April
2025. When applying the amendments, an entity
cannot restate comparative information.

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

(ii) Amendments to Ind AS 1 - Classification of
Liabilities as Current or Non-current and Non¬
current Liabilities with Covenants

In August 2025, the MCA notified amendments
to paragraphs 69 to 76 of Ind AS 1 to specify the
requirements for classifying liabilities as current
or non-current. The amendments clarify:

Ý What is meant by a right to defer settlement.

Ý That a right to defer must exist at the end of
the reporting period

Ý That classification is unaffected by the
likelihood that an entity will exercise its
deferral right

Ý That only if an embedded derivative in
a convertible liability is itself an equity
instrument would the terms of a liability not
impact its classification

In addition, a requirement has been introduced
to require disclosure when a liability arising from
a loan agreement is classified as non-current
and the entity's right to defer settlement is
contingent on compliance with future covenants
within twelve months.

I f there is a breach of a material covenant of a
long term loan arrangement on or before the end
of the reporting period, resulting in the liability
becoming payable on demand as at the reporting
date, and the lender agrees-after the reporting
period but before the financial statements are
approved for issue-not to demand repayment
for at least 12 months as a consequence of the

breach, this shall be treated as an adjusting
event. Accordingly, the entity is not required to
classify the liability as current.

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

The amendments does not have an impact on the
classification of Company's liabilities.

(iii) Amendments to Ind AS 7 and Ind AS 107 -
Supplier Finance Arrangements

In August 2025, the MCA notified amendments
to Ind AS 7 Statement of Cash Flows and Ind
AS 107 Financial Instruments: Disclosures to
clarify the characteristics of supplier finance
arrangements and require additional disclosure
of such arrangements.

The disclosure requirements in the amendments
are intended to assist users of financial statements
in understanding the effects of supplier finance
arrangements on an entity's liabilities, cash flows
and exposure to liquidity risk.

As a result of implementing the amendments,
the Company has provided additional disclosures
about its supplier finance arrangement. Please
refer to Note 17 and Note 14.

(iv) International Tax Reform—Pillar Two Model
Rules - Amendments to Ind AS 12

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

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

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

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

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

2.3 Standards notified but not yet effective

There are no standards that are notified and not yet
effective as on date.

nature and description of reserve

a. Capital Reserve - The Company recognized profit or loss on cancellation of Companies own equity instruments to
capital reserve.

b. General Reserve - General reserves are free reserves of the Company which are kept aside out of Company's profits
to meet the future requirements as and when they arise.

c. Share based payment reserves - The Company has a stock option scheme under which options to subscribe for
the Company's shares have been granted to certain executives and senior employees. The share-based payment
reserve is used to recognise the value of equity-settled share-based payments provided to employees, including key
management personnel, as part of their remuneration. Refer to Note 36 for further details of these plans.

d. Retained Earnings - Retained earnings are the accumulated profits earned by the Company till date, less transfer
to general reserves, dividend and other distributions made to the shareholders.

e. Securities Premium - Securities premium represents premium on issue of shares. It will be utilised in accordance with
the provisions of the Companies Act, 2013.

note:

1. During the year, the Company has availed the facility of Trade Acceptances on Trade Receivable Discounting System
(TReDs) and carries interest @ 6.10 % to 6.25% p.a. (March 31, 2025 carries interest @ 6.54% to 7.50% p.a.) and
outstanding is repayable within a period of 77 days. It represents the acceptances of ' 26.41 crores (March 31, 2025:
' 17.05 crores) for which suppliers have received the payment.

2. Loans and Borrowing has been utilised for the purpose it has been obtained.

3. Company is having sanctioned working capital limits in excess of Rs 5.00 crore in aggregate from banks during
FY 2025-2026 on the basis of security of current assets of the Company and all quarterly statements of current assets
filed by the Company with banks during the year are in agreement with the unaudited books of accounts except for
the following quarter:

a) Trade payables are non-interest bearing and normally settled on 0 to 90 day terms.

b) Trade Payables include due to related parties ' 2.57 crores (March 31, 2025 : ' 3.65 crores) (Refer note 34).

c) Trade payables include acceptances of ' 139.15 crores (March 31, 2025: ' 137.45 Crores) for which suppliers have
received the payment. Acceptances represent arrangements where suppliers of goods and services are initially paid
by the banks, while Company continues to recognize the liability till settlement with the banks, which are normally
effected within a period of 62 days (March 31, 2025 : 78 Days) .

d) Ageing required as per schedule III is provided in note no. 47.

31. Employee benefits

A. Defined Benefit Schemes
Gratuity

The Company has a defined benefit gratuity plan. The gratuity plan is governed by Code on Social Security, 2020.
The scheme is funded with an insurance company in the form of qualifying insurance policy.

Every employee is entitled to a benefit equivalent to fifteen days' salary last drawn for each completed year of service
in line with the Code on Social Security, 2020. The same is payable at the time of separation from the Company or
retirement, whichever is earlier. The benefits vest after five years of continuous service.

The following tables summarises the components of net benefit expense recognized in the Statement of Profit & Loss
and the funded status and amounts recognised in the balance sheet for the plan :

Rbove sensitivity analysis is based on a change in assumption while holding all the other assumptions constant.
In practice, this is unlikely to occur, and change in some of the assumptions may be correlated. When calculating
the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present
value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting
period) has been applied as when calculating the defined benefit liability recognised in balance sheet.

x. Risk exposure

The gratuity scheme is a final salary Defined Benefit Plan that provides for lump sum payment made on exit
either by way of retirement, death, disability or voluntary withdrawal. The benefits are defined on the basis of
final salary and the period of service and paid as lump sum at exit. Valuations are based on certain assumptions,
which are dynamic in nature and vary over time. Rs such company is exposed to various risks as follow :

a) Interest rate risk: The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates
will result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase
in the value of the liability.

b) Salary inflation risk: Higher than expected increases in salary will increase the defined benefit obligation.

c) Investment risk: If Plan is funded then assets liabilities mismatch and actual investment return on assets
lower than the discount rate assumed at the last valuation date can impact the liability.

d) Demographic risk: This is the risk of variability of results due to unsystematic nature of decrements that
include mortality, withdrawal, disability and retirement. The effect of these decrements on the defined
benefit obligation is not straight forward and depends upon the combination of salary increase, discount
rate and vesting criteria .

e) Liquidity risk: This is the risk that the Company is not able to meet the short-term gratuity pay outs. This
may arise due to non availability of enough cash/cash equivalent to meet the liabilities or holding of illiquid
assets not being sold in time.

f) Regulatory risk: Gratuity benefits paid in accordance with the requirements of the Code on Social Security,
2020. (as amended from time to time).There is a risk of change in regulations requiring higher gratuity pay¬
outs.

B. Defined Contribution Plan :

The Company deposits an amount determined at a fixed percentage of basic pay every month to the State administered

Provident Fund, Employee State Insurance (ESI) and Superannuation Fund for the benefit of the employees.

notes

¹The demand raised by the tax authorities is mainly towards disallowance of availment of CEnVRT credit.

²The demands raised by the tax authorities are mainly towards enhancement of turnover due to certain disallowances,
ineligible GST input credits and local sales tax/Goods and service Tax(GST) demands upon completion of assessment and
various other miscellaneous matters raised by the respective state and central authorities.

During the previous year, Company had received demand order/show cause notices of Rs 29.25 Crore with equal amount
of penalty from the Rnti Evasion section of the GST and Central Excise Department from the state of Maharashtra, Madhya
Pradesh and Rndhra Pradesh for the period from July 01, 2017 to July 17, 2022, where department has alleged import/
purchase of goods at higher rate and sale at lower rate of GST on account of wrong HSn (Harmonized system nomenclature)
classification code and other matters.

In addition to these demand orders, the Company has also received demand of Rs 2.87 Crores with equal amount of penalty
from the Assistant Commissioner of Central Tax and Central Excise, Vijayawada, Rndhra Pradesh on similar ground for the
period from Rpril 2018 to July 2022.

The Company has filed writ petitions and appeal against the said orders in state of Maharashtra, Madhya Pradesh and
Rndhra Pradesh respectively.

Based on advice obtained from tax expert, management is confident that it has a strong case on merits and therefore, no
adjustments are required in these financial statements of the Company.

³During the previous year, the Company had received demand order of Rs 2.84 crores from the Office of Joint Commissioner,
West Bengal for the FY 2020-21 on account of wrong/ineligible ITC availed and non reversal of ITC in case of purchase
credit notes. The Company had filed the appeal to Joint Commissioner (Appeal) against the said order, However the appeal
has been partially allowed and demand reduced to Rs 2.79 crores. Company is in process of filing appeal in respect to
remaining demand with GST appellate Tribunal(GSTRT).

Further, Sales Tax and Goods and service Tax(GST) litigations includes Rs 4.84 crores as at March 31, 2026 Pertaining to
other matters.

Based on advice obtained from tax expert, management is confident that it has a strong case on merits and therefore, no
adjustments are required in these financial statements of the Company.

⁴In the year 2017, upon closure of CFL unit at Faridabad, Haryana the Company had transferred 13 employees from
Faridabad to different office locations of Company. The workers, challenged their transfer and termination before Industrial
Tribunal-cum-Labour Court -III, Faridabad (Haryana), which passed an order on Rpril 30, 2024 under section 10(1)(c) of
Industrial Dispute Rct awarding reinstatement and payment of back wages for 13 erstwhile workers who were in litigation
with the Company. Rs per impugned award, total back wages for these 13 persons at the rate of 50% of their last drawn

wages amounts to ' 0.98 crores is to be paid by the Company. The Company had filed writ petition against this order in the
High Court of Punjab and Hon'ble Court reduced the back wages to ' 0.04 crore per workmen and directed reinstatement
of 13 workmen vide order dated July 29,2024.

Company had complied with the said order in previous year and accordingly matter was closed as the Company had
complied with the order of court.

Further, another matter involving claim by workers amounting to Rs 0.11 crores, is pending before Honble High court of
Punjab and Haryana. Based on the legal advice Management believes that the outcome of this proceeding will not have
an adverse impact against the Company.

⁵Entry Tax (Haryana) - Supreme Court of India vide its order dated Nov 11, 2016, upheld the right of State Government to
impose the entry tax, however on the question regarding validity of each State Legislation imposing entry tax, the bench
decided to let the issue be determined by regular High Court benches of the respective states, pending decision of High
Court of Punjab & Haryana, the impact, if any, was not ascertainable.

In FY 2024-25, Haryana government issued Haryana Goods and Services Tax (Removal of Difficulties) Order, 2024 ("ROD")
to complete the pending proceedings under the Haryana Entry Tax and accordingly, post issuance of removal of difficulties
(ROD) order by Haryana government, Excise and Taxation Officer-cum-Rssessing Authority has issued show cause notices
to the Company for RY 2015-16 to 2017-18 amounting to ' 33.75 crores in respects of goods brought into Haryana for
consumption/use/ sale in the said period.

The Company had filed Writ petition before High court of Punjab & Haryana against these show cause notices which is
pending for adjudication. Based on legal advice obtained from tax expert, management is confident that it has a strong
case on merits and therefore, no adjustments are required in these financial statements of the Company.

⁶In the year 2021, Company had received a demand from Haryana State Pollution Control Board (HSPCB) stating that
alleged discharge from its Faridabad factory was in violation of the consent limits/ prescribed standards. The Company
challenged the demand in High Court of Punjab and Haryana. The matter has been disposed off by Hon'ble High court and
directing HSPCB to reconsider the submission of Company under the modified policy of HSPCB. Subsequently, HSPCB has
reduced the demand towards environment compensation as per its modified policy from Rs 0.48 crore to Rs 0.11 Crore.
However, in view of the aforesaid demand raised by HSPCB, prosecution proceedings were initiated by HSPCB before the
Magistrate Court, Faridabad, wherein summons were served on the Company and its directors.

The summons were challenged by the Directors in High Court of Punjab and Haryana and the same has been stayed by the
Hon'ble High court and is currently pending adjudication. The management, including its legal advisors, believes that the
ultimate outcome of these proceedings will not have an adverse impact on the Company's financial position and results
of operation.

⁷The Company has pending export obligation on account of import duty exemption of Rs 0.87 crores (March 31, 2025:Rs
1.18 crores) on capital goods imported under the Export Promotion Capital Goods (EPCG). The Company expects to fulfil
the obligation in due course of time.

No expenses has been accrued in the financial statements for demands/claims raised. Management believes that the
ultimate outcome of this proceeding will not have an adverse impact on the Company's financial position and results
of operation.

B. Other Litigations

1. In respect of Kolkata plant where a portion of land (about 2 bigha) was taken on sub-lease by the Company, lease
agreement between owners of the said land and principal lessee expired in 1975. The owners filed eviction proceedings
against the principal lessee in 1976 and the suit was decided in favour of the owners in March 31, 2007. The Company
appealed against the same and vide interim order in May, 2007, the order of eviction and execution proceedings
pursuant to decree were stayed by Appellate Court, pending outcome of the appeal. However, pursuant to application
by owners, the Court directed the Company to deposit of ' 60,000 per month w.e.f. March 26, 2018 as occupational
charges, which continues to be disclosed as 'deposit' under Note 5 of the financial statements. During the previous

year, Fast-Track Court at Sealdah vide order dated June 15, 2024 has passed an order in which judgement dated March
31, 2007, passed against the Company has been set aside and the appeal filed by the Company against the original
order was allowed on contest.

In light of order received on Jun 15, 2024, Company did not make any occupational charges deposit in the court from
July 2024 month onwards. Also, on September 27, 2024, the Company filed an application in the Court for refund of
occupational charges paid till Jun 30,2024 amounting to ' 0.45 crore and matter is adjourned till June 30, 2025.

During the previous year, Owners have filed appeal before Calcutta High Court against said order which is admitted
and pending for further hearing. Based on legal assessment from expert, management believes that no liability needs
to be accrued for rental expenses or decommissioning liabilities in the financial statements at this stage.

2. The Company has certain litigations under Section 138 of negotiable Instruments Act, 2018 and trade receivables
against these cases has been provided for.

3. During the earlier years, order was passed by Hon'ble High Court of Delhi for alleged design infringement, where in
the Court had issued restraining order on the manufacturing, marketing, and selling of specific model of fans category
by the Company.

Further, during the previous year, another case has been filed against the Company for alleging infringement trademark
before Hon'ble High Court of Delhi which was pending for adjudication.

In respect to above litigations, subsequent to reporting date Company has entered into amicable settlement through
Mediation and matters stand closed. The matters are presently pending for passing of final orders by the Hon'ble High
Court of Delhi in accordance with the mediation settlement. Based on the settlement, there is no material financial
impact on the Company.

4. During, the previous year Company had discontinued operations with 2 customers who are related to each other
(collectively referred to as "Customers") due to commercial considerations, including non-payment of outstanding
balance. In accordance with the terms of the underlying arrangement and considering the non-fulfilment of certain
contractual obligations by the Customers, the Company invoked and realized bank guarantees of Rs 4.81 crores
furnished by them.

Subsequently, during the current year, Customers have filed counter claim of Rs 22.03 crores against the Company,
alleging non fulfilment of commercial arrangements.

The matter is presently under arbitration and is being contested by the Company. Based on the internal assessment
and legal advice, management believes that the claims are not tenable and that the Company has a good merits in
the case. Accordingly, no provision has been recognized in the financial statements in respect of these claims.

5. During the year, the Company has received a notice from one of a competitor regarding use of brand name "Orient"
for wires and cables. The matter is currently pending before the Hon'ble High Court of Delhi and is being pursued
for amicable resolution through the Delhi High Court Mediation and Conciliation Centre. Based on management's
assessment, supported by legal advice, the Company expects resolution without any material impact.

Further, the Company has also received legal notice alleging use of brand name "Orient" for Electrical goods identical
to alleging party. The matter is pending before the Hon'ble High Court of Calcutta.

Based on management's assessment, supported by legal advice, the Company expects resolution without any material
financial impact.

C. Other contingencies

1. The E-Waste (Management) Rules, 2022, notified by the Central Pollution Control Board (CPCB), became applicable
to the Company with effect from April 1, 2023. In compliance with these rules, the Company has obtained Extended
Producer Responsibility (EPR) authorisation from CPCB as a producer for specified product categories listed under
Schedule I of the said Rules. The Company has also engaged authorised third-party waste management agencies
for the collection and disposal of e-waste. In the current year, the Company, has computed its obligation on the past
sales whose product life has expired in the current year amounting to ' 23.25 crores (March 31, 2025: ' 19.70 crores)
which has been recognized in these financial statements. The said obligation is based on the management's best
estimates, and no further liability is anticipated to devolve upon the Company in this regard.

As per the expert opinion obtained, the Company will have an obligation to complete the Extended Producer
Responsibility targets in future years if it continues to remain market participant. Further, CPCB, vide its notification
dated September 9, 2022, has issued guidelines for environmental compensation under these Rules, prescribing a
minimum compensation rate of '22 per kg.

The Company has fulfilled its contractual obligation of E-waste recycling under EPR rules as per contractual rates
agreed with vendor and based on legal opinion, management is of the view that such guidelines do not have any
material impact on the Company and hence no additional provision is required there against.

34. Related party transactions

I. List of Related parties

A) Investing Company

i. Central India Industries Limited

B) Public limited company in which director or manager is a director and holds along with his relatives,
more than two percent of its paid up share capital

i. Orient Paper & Industries Limited

ii. Orient Cement Limited (till April 22, 2025)

C) Members of the Board of Directors/Key management personnel (KMP)

i. Chairman and Non-Executive Director

a) Mr. CK Birla

ii. Key management personnel (KMP)

a) Mr. Ravindra Singh Negi, Managing Director and CEO (w.e.f. May 31, 2024)

b) Mr. Desh Deepak Khetrapal, Vice Chairman and Managing Director (w.e.f. July 15, 2023 and upto May
30, 2024)

c) Mr. Arvind Vats,Chief Financial Officer (w.e.f. January 01, 2025)

d) Mr. Saibal Sengupta,Chief Financial Officer (Upto December 31, 2024)

e) Ms. Diksha Singh,Company Secretary and Compliance officer (w.e.f. April 26, 2025)

f) Ms. Dipti Mishra,Compliance officer (w.e.f. March 07, 2025 upto April 25, 2025)

g) Mr. Hitesh Kumar Jain,Company Secretary and Compliance officer (upto December 20, 2024)

iii. Other Non-Executive Directors

a) Mr. TCA Ranganathan, Independent director

b) Mr. K. Pradeep Chandra, Independent director

c) Ms. Alka Marezban Bharucha, Independent director

d) Mr. Raju Lal, Independent director

35. Segment information

The segment reporting of the Company has been prepared in accordance with Ind RS-108, "Operating Segment" (specified
under the section 133 of the Companies Rct 3013 (the Rct) read with Companies (Indian Accounting Standards) Rule 3015
(as amended from time to time) and other relevant provision of the Rct).

Operating segments are defined as components of an enterprise for which discrete financial information so available
is evaluated regularly by Chief Operating Decision Maker (CODM), in deciding how to allocate resources and assessing
performance. Rccordingly, the Company has identified two reportable business segments based on its product and services
as follows:

i Electrical Consumer Durables - Consists of manufacture / purchase and sale of electric Fans - ceiling, portable and
airflow, along with components and accessories thereof, and Rppliances- coolers, geysers and home appliances etc .

ii Lighting & Switchgear- Consists of manufacture / purchase and sale of Lights & Luminaries- LED, street lights etc.
and Switchgears- switches & MCB etc.

The CODM primarily uses a measure of revenue from operation and profit or loss to assess the performance of the operating
segments on monthly basis.

The Company primarily operates in India and therefore the analysis of geographical segments is demarcated into its Within
India and Outside India Operations.

Unallocated

Revenue, expenses, assets and liabilities have been identified to a segment on the basis of relationship to operating
activities of the segment. Revenue, expenses, assets and liabilities which relate to enterprise as a whole and are not
allocable to a segment on reasonable basis have been disclosed under unallocated.

36. Share based payments

The Company has, vide special resolutions passed by postal ballot, effective from March 13, 2019, introduced and
implemented 'Orient Electric Employee Stock Option Scheme 2019' ("ESOP Scheme"). The terms and broad framework
of the ESOP Scheme has been approved by the Board of Directors of the Company at their meeting held on January
28, 2019. Pursuant to the provisions of Section 62(1)(b) and all other applicable provisions, if any, of the Companies
Rct, 2013 (the "Rct") and the Companies (Share Capital and Debenture) Rules, 2014 read along with the provisions
of the Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021
(SEBI ESOP Regulations), the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)
Regulations, 2015 (the "Listing Regulations"), the nomination and Remuneration Committee ("Remuneration
Committee") of the Board of Directors of the Company is authorised to implement and administer the ESOP Scheme
- 2019. The ESOP Scheme has been formulated in accordance with the SEBI ESOP Regulations.

Under the ESOP Scheme, the eligible employees shall be granted employee Stock Options in the form of Options
("Stock Options") which will be exercisable into equal number of equity shares of Re. 1/- each of the Company.

Details of the ESOP Scheme:

a) Exercise Price: Market Price of equity share as on the previous close rate on the Stock Exchange immediately
preceding the date of the grant.

b) Vesting Period :

(i) Grant 1 to 3: 40% of options shall vest after 3 years from grant date and 60% of options shall vest after 4
years from grant date.

(ii) Grant 4 to 6: 40% of options shall vest after 2 years from grant date and 60% of options shall vest after
3 years from grant date.

(iii) Grant 7 and 8: 33.33 % of options shall vest every year upto 3 years from grant date.

(iv) Grant 9: 40% of options shall after 1 year from grant date and 60% of options shall vest after 2 years from
grant date.

c) Exercise Period: 4 years post vesting.

d) Method of settlement: Equity.

e) Vesting conditions: Employee remaining in the employment of the Company during the vesting period.

In exercise of the powers, Remuneration Committee has, during the year granted a total of 8,57,200 (March 31, 2025:3,00,378)
new Stock Options to eligible employees of the Company as per ESOP Scheme- 2019, while 3,64,507 (March 31, 2025 :
401,129) Stock Options, granted in earlier years have been lapsed on account of separation of employee from the company.

37. Leases
Rs a lessee

The Company has lease contracts for various Properties (e.g. Corporate office, Depots, Plants, Warehouse etc), leased lines,
office equipment's etc used in its operations. Leases of property generally have lease terms between 2 to 10 years. The
Company's obligations under its leases are secured by the lessor's title to the leased assets. Generally, the Company is
restricted from assigning and subleasing the leased assets. There are several lease contracts that include extension and
termination options which are further discussed below.

The Company also has certain leases of property and machinery with lease terms of 12 months or less and leases of
office equipment with low value. The Company applies the 'short-term lease' and 'lease of low-value assets' recognition
exemptions for these leases.

The Company had total cash outflows for leases of ' 43.80 crores in March 31, 2026 ( March 31, 2025: ' 41.76 crores). The
Company also had non-cash additions to right-of-use assets and lease liabilities of ' 27.42 crores as at March 31, 2026
(March 31, 2025: ' 8.64 crores).

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.

The Company is exposed to market risk, credit risk and liquidity risk. The Company has a Risk management policy and
its management is supported by a Risk management committee that advises on risks and the appropriate financial
risk governance framework for the Company. The Risk management committee provides assurance to the Company's
management that the Company's risk activities are governed by appropriate policies and procedures and that financial
risks are identified, measured and managed in accordance with the Company's policies and risk objectives. The Board of
Directors reviews and agrees policies for managing each of these risks, which are summarised below.

Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes
in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk, such as
commodity price risk and equity price risk. Financial instruments affected by market risk include trade payables, trade
receivables, borrowings, etc.

Commodity price risk

The Company is affected by the price volatility of certain commodities. Its operating activities require the ongoing
manufacture of electronic items and therefore require a continuous supply of copper and aluminium being the major input
used in the manufacturing. Due to the significantly increased volatility of the price of the Copper and aluminium, the
Company has entered into various purchase contracts for these material for which there is an active market. The Company
maintain the level of these stocks as per the requirement of businesses and market which are discussed by the management
on regular basis. Company operates in the way that saving/impact due to change in commodity price are pass on to the
customers and therefore impact on profit due to change in price of commodity is unascertainable.

Interest rate risk

The Company's exposure to the risk of changes in market interest rates relates primarily to the Company's debt obligations
with floating interest rates. The Company's borrowings outstanding as at March 31, 2026 and March 31, 2025 comprise of
fixed rate loans and accordingly, are not expose to risk of fluctuation in market interest rate.

Foreign currency risk

The Company's exposure to foreign currency arises where a Company holds monetary assets and liabilities denominated
in a currency different to the functional currency of that entity with Indian rupees (INR) . Set out below is the impact of a
5% change in the INR on profit and equity arising as a result of the revaluation of the Company's foreign currency financial
instruments. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts
their translation at the year end for a 5% change in foreign currency rates. For a 5% strengthing/weakening of the INR
against the relevant currency, there would be a comparable negative/positive impact on the profit or equity, as applicable.

Foreign currency exchange rate exposure is partly balanced by purchasing of goods from the respective countries. The
Company evaluates exchange rate exposure arising from foreign currency transactions and follows appropriate risk
management policies.

Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a Financial instrument or customer contract,
leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables).

Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company's treasury department in
accordance with the Company's policy. Investments of surplus funds are made in the bank deposits and overnight debt
mutual funds. The limits are set to minimize the concentration of risks and therefore mitigate financial loss through counter
party's potential failure to make payments.

The Company's maximum exposure to credit risk for the components of the balance sheet at March 31, 2026 and March 31,
2025 is the carrying amounts . Trade Receivables and other financial assets are written off when there is no reasonable
expectation of recovery, such as debtor failing to engage in the repayment plan with the Company. The Company's
maximum exposure relating to financial assets is noted in liquidity table below.

Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations or at a reasonable price.
The Company's treasury department is responsible for liquidity, funding as well as settlement management. In addition,
processes and policies related to such risks are overseen by senior management. Management monitors the Company's
net liquidity position through rolling forecasts on the basis of expected cash flows.

The Company's objective is to maintain a balance between continuity of funding and flexibility through the use of cash
credits, bank loans among others.

41. Capital management

For the purpose of the Company's capital management, capital includes issued equity capital and all other equity reserves
attributable to the equity holders. The primary objective of the Company's capital management is to maximise the
shareholder value and keep the debt equity ratio within acceptable range.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the
requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend
payment to shareholders, return capital to shareholders and issue new shares.

The management assessed that bank balances, trade receivables, trade payables, short term borrowings and other current
liabilities approximate their 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:

1. The fair values of the interest-bearing borrowings and loans are determined by using DCF method using discount rate
that reflects the Company'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.

2. Long-term receivables/payables are evaluated by the Company based on parameters such as interest rates, risk
factors, individual creditworthiness of the counterparty and the risk characteristics of the financed project. Based on
this evaluation, allowances are taken into account for the expected credit losses of these receivables.

The significant unobservable inputs used in the fair value measurement categorised within Level 3 of the fair value
hierarchy together with a quantitative sensitivity analysis as at March 31, 2026, are as shown below:

Fair value hierarchy

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

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

Level 2: other techniques for which all inputs that have a significant effect on the recorded fair value are observable,
either directly or indirectly.

Level 3: techniques that use inputs that have a significant effect on the recorded fair value that are not based on
observable market data.

48. (a) Pursuant to approval of Board of directors relating to consolidation of manufacturing facilities at noida (U.P), the

Company has recognised loss of ' 1.51 crores in current year arising from write-down of capital assets to their
net Realizable Value (nRV) and disclosed as an exceptional item.

Further, In accordance with Ind FIS 105 "non-Current Assets Held For Sale and Discontinued Operations" the said
capital asset is classified as 'Asset held for sale' as the carrying amounts of such asset amounting to ' 1.38 crores
is to be recovered principally through sales transaction rather than continuing use.

(b) During the current year, pursuant to approval of the Board of Directors, Company has entered into Agreement to
Sale in respect to a dwelling unit at new Delhi having net value of ' 1.42 crores. The execution and registration
of the sale deed is pending and accordingly in accordance with Ind AS 105 "non-Current Assets Held For Sale
and Discontinued Operations" the said capital asset is classified as 'Asset held for sale'.

49. Other Statutory information

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against
the Company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 and rules
made thereunder.

(ii) The Company does not have any transactions with companies struck off under section 248 of Companies Act, 2013.

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

(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

(v) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign
entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(vi) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party)
with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

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

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

50. The Company uses accounting software for maintaining its books of account which has a feature of recording audit
trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software,
except that audit trail feature is not enabled for direct changes to data for users with certain privileged access rights to the
accounting software (SAP S4 Hana application) and the underlying database. Further, certain features of the audit trail to
record direct changes in application was temporarily disabled during the year. However, in the opinion of the management
audit trail has not been tampered during the year and the audit trail has been preserved as per the statutory requirements
for record retention to the extent available.

51. (a) On November 21, 2025, the Government of India notified the four Labour Codes - the Code on Wages, 2019, the

Industrial Relations Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health and
Working Conditions Code, 2020 - consolidating 29 existing labour laws.

Pursuant to the notification issued by the Ministry of Labour and Employment, multiple existing labour legislations
have been consolidated into a unified framework comprising four Labour Codes, collectively referred to as the
'New Labour Codes' which became effective from November 21, 2025. The Company had assessed and disclosed
the incremental impact of these changes consistent with the guidance provided by the Institute of Chartered
Accountants of India. Accordingly, an incremental liability of ' 8.65 crores had been recognised as an "Exceptional
Item" during the year ended March 31, 2026.

The Ministry is in the process of notifying related rules to the New Labour Codes and impact of those will be
evaluated and accounted for in the period in which they are notified.

(b) Pursuant to approval of Board of directors relating to consolidation of manufacturing facilities at Noida (U.P),
the Company has recognised loss of Rs 1.51 crores in current year arising from write-down of capital assets to
their Net Realizable Value (NRV) and disclosed as an exceptional item.

52 . The figures have been rounded off to the nearest crore of rupees upto two decimal places. The figure 0.00 wherever
stated represents value less than ' 50,000/-.