2.17 Provision, Contingent Liabilities and Contingent Assets :

A provision is recognized when the Company has a present obligation as a result ofpast event and it is probable that an outflow of
resources will be required to settle the obligation, in respect of which reliable estimate can be made. 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 costs.
Contingent liabilities and Contingent assets are not recognized in the financial statements."

2.18 Segment Accounting :

Managing Director & CEO of the Company has been identified as the Chief Operating Decision Maker (CODM) as defined
by Ind AS-108, "Operating Segments" He identifies and monitors the operating results of its business segments separately
for purpose of making decision about resource allocation and performance assessment. Segment performance is evaluated
based on profit or loss and is measured consistently with profit or loss in the financial statements. The Operating segments
have been identified on the basis of the nature of products/services. The analysis of geographical segments is based on the
revenue generating locations. The geographical segment information of the company is categorized under domestic sales
and export sales.

A. Segment Reporting policies:

Following Accounting policies have been followed for segment reporting:

i. Segment revenue includes sales and other income directly identifiable with/allocable to the segment including
inter-segment revenue.

ii. Expenses that are directly identifiable with/allocable to segments are considered for determining the Segment
Result. Expenses which relate to the Company as a whole and not allocable to segments are included under "Un¬
allocable Corporate Expenses".

iii. Income which relates to the Company as a whole and not allocable to segments is included in "Un-allocable
Corporate Incomes".

iv. Segment result includes margins on inter-segment transactions, which are reduced in arriving at the profit
before tax of the Company.

v. Segment assets and liabilities include those directly identifiable with the respective segments. Un-allocable
corporate assets and liabilities represent the assets and liabilities that relate to the Company as a whole and not
allocable to any segment.

B. Inter-segment transfer pricing

Segment revenue resulting from transactions with other business segments is accounted on the basis of transfer price
agreed between the segments. Such transfer prices are either determined to yield a desired margin or agreed on a
negotiated basis.

2.19 Assets Held For Sale :

Non-current assets and disposal groups are classified as held for sale if their carrying amount is intended to be recovered
principally through a sale (rather than through continuing use) when the asset (or disposal group) is available for immediate
sale in its present condition subject only to terms that are usual and customary for sale of such asset (or disposal group)
and the sale is highly probable and is expected to qualify for recognition as a completed sale within one year from the date
of classification. Non-current assets and disposal groups classified as held for sale are measured at lower of their carrying
amount and fair value less costs to sell.

2.20 Exceptional Item:

When items of income and expense 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 enterprise for the period, nature and amount of
such material items are disclosed separately as an Exceptional Item.

2.21 Cash and Cash Equivalent

Cash and cash equivalent in the balance sheet comprise cash at banks and on 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. For the purpose of the statement
of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, net of outstanding bank
overdrafts as they are considered an integral part of the Company's cash management.

2.22 Statement of Cash Flows

Statement of Cash Flows is prepared segregating the cash flows into operating, investing and financing activities. Cash flow
from operating activities is reported using indirect method, adjusting the profit before tax excluding exceptional items for the
effects of:

(i) changes during the period in inventories and operating receivables and payables;

(ii) non-cash items such as depreciation, provisions, unrealised foreign currency gains and losses; and

(iii) all other items for which the cash effects are investing or financing cash flows.

Cash and cash equivalents (including bank balances) shown in the Statement of Cash Flows exclude items which are not
available for general use as at the date of Balance Sheet"

2.23 Employee Stock Option (ESOP)

Equity-settled share based payments to employees are measured at the fair value of the equity instruments at the grant date.
The fair value determined at the grant date of the equity-settled share based payments is expensed on a straight-line basis
over the vesting period, based on the Company's estimate of equity instruments that will eventually vest, with a corresponding
increase in equity. At the end of each reporting period, the Company revises its estimate of the number of equity instruments
expected to vest. The impact of the revision of the original estimates, if any, is recognised in Statement of Profit and Loss such that
the cumulative expenses reflects the revised estimate, with a corresponding adjustment to the Share Based Payments Reserve.
The dilutive effect of outstanding options is reflected as additional share dilution in the computation of diluted earnings per
share.

B Other Accounting plocies

2.24 Investment:

Investments, which are readily realizable and intended to be held for not more than one year from the date on which such
investments are made, are classified as current investments. All other investments are classified as long term investments.

On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable
acquisition charges such as brokerage, fees and duties. If an investment is acquired, or partly acquired, by the issue of shares
or other securities, the acquisition cost is the fair value of the securities issued. If an investment is acquired in exchange for
another asset, the acquisition is determined by reference to the fair value of the asset given up or by reference to the fair value
of the investment acquired, whichever is more clearly evident.

Current investments are carried in the financial statements at lower of cost and fair value determined on an individual
investment basis. Long term investments are carried at cost.

However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments.

On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to
the statement of profit and loss.

Investment Property

Investment properties are properties held to earn rentals and/or for capital appreciation (including property under
construction for such purposes). Investment properties are measured initially at cost, including transaction costs. All of the
Company's property interests held under operating leases to earn rentals or for capital appreciation purposes are accounted
for as investment properties. After initial recognition, the company measures investment property at cost.

An investment property is derecognized upon disposal or when the investment property is permanently withdrawn from use
and no future economic benefits are expected from the disposal. Any gain or loss arising on de recognition of the property
(calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in profit or
loss in the period in which the property is derecognized.

Investment properties are depreciated in accordance to the class of asset that it belongs and the life of the asset is as conceived
for the same class of asset at the Company

2.25 Leases :

The determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement at the
inception of the lease. The arrangement is, or contains, a lease if fulfilment of the arrangement is dependent on the use
of a specific asset or assets and the arrangement conveys a right to use the asset or assets, even if that right is not explicitly
specified in an arrangement.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of
ownership to the lessee. All other leases are classified as operating leases.

i) Finance Lease

Where the Company, as a lessor, leases assets under finance lease, such amounts are recognised as receivables at an
amount equal to the net investment in the lease and the finance income is based on constant rate of return on the
outstanding net investment.

Assets taken on finance lease are initially recognised as assets of the Company at their fair value at the inception of
the lease or, if lower, at the present value of the minimum lease payments. Lease payments are apportioned between
finance costs and reduction of outstanding liability. Finance costs are recognised as an expense in the statement of
profit or loss over the period of lease, unless they are directly attributable to qualifying assets, in which case they are
capitalized in accordance with Company's general policy on borrowing costs.

ii) Operating Lease

Lease arrangements under which all risks and rewards of ownership are effectively retained by the lessor are classified
as operating lease. Lease rental under operating lease are recognised in the Statement of Profit and Loss on a straight
line basis over the lease term.

iii) Sale and Lease back transaction

In case of a sale and leaseback transaction resulting in a finance lease, any excess or deficiency of sales proceeds over
the carrying amount is deferred and amortised over the lease term in proportion to the depreciation of the leased asset.

Profit or Loss on Sale and Lease back arrangements resulting in finance leases are recognised, in case the transaction is
established at fair value, else the excess over the fair value is deferred and amortised over the period for which the asset
is expected to be used.

"The management has determined that the investment properties consist of single class of asset based on the nature, characteristics and
risks of the property.

The fair value of the Investment properties is '3,157 Lakhs (Previous Year '3,157 Lakhs). These valuations are based on valuations performed
by D. K. Nagarseth & Associates who is registered under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017. Based on the
valuer's assessment, there was no change in the prevailing market rates for agricultural and non-agricultural land. The valuer also reviewed
recent land transaction records in the respective locations and noted that no significant comparable land transactions had occurred during
the period. Accordingly, the fair value of the investment properties remains unchanged from the previous year.

A road extension and repair project is currently underway on the land belonging to the Company, extending from Dalaj to Walchandnagar
While the Company had issued a No Objection Certificate (NOC) to the local body for repair of the existing road, it has come to the
Company's attention that the scope of the project involves not only repairs but also widening of the road. The road widening activity
extends into a portion of the Company's land.

The Company has initiated legal proceedings and filed a suit before the Court of Sr. Judge Sr. Division, being Suit No. 444/2025 challenging
the unauthorized encroachment and seeking appropriate reliefs.

The Company is contemplating to file a Writ Petition in the Hon'ble Bombay High Court for substantive reliefs to pass a direction to the
government authorities/Collector to follow the due process of law as per the concerned Land Acquisition Act and other applicable statutes
and provide appropriate compensation to WIL

No adjustment has been made in the carrying value of the land , pending the outcome of the legal proceedings.

The Company intends to dispose some of its freehold land and Property in Maharashtra and Karnatka within next 12 months. No impairment
loss was recognised on reclassification of the property as held for sale as the Company expects that the fair value (estimated based on the
recent market prices of similar properties in similar locations) less costs to sell is higher than the carrying amount of ' 2,648 Lakhs.

During the financial years, Flat located at Mumbai has classified as Assets held for sale, with a carrying amount of ' 160 Lakhs. The company
has received advance from customers towards sale of Flat. The asset continues to be measured at the lower of its carrying amount and fair
value less costs to sell, estimated at ' 160 Lakhs as of March, 31,2026.

During the preceding financial years, the company identified a non-current asset for sale based on management's commitment. Despite
extensive efforts, the sale of part of asset held for sale has not concluded within the initial 12-month period due to unforeseen market
conditions.

Land located at Bhigwan was initially classified as held for sale, with a carrying amount of ' 33 Lakhs. As of the reporting date, the initial
12-month period has lapsed. However, the company has received advance from customers towards sale of land. The asset continues to be
measured at the lower of its carrying amount and fair value less costs to sell, estimated at ' 33 Lakhs as of March, 31,2026.

Land and Building located at Dharwad, Karnatka was initially classified as held for sale, with a carrying amount of ' 2455 Lakhs. As of the
reporting date, the initial 12-month period has lapsed. However, the company has received advance from customers towards sale of land
and Building. The asset continues to be measured at the lower of its carrying amount and fair value less costs to sell, estimated at ' 2455
Lakhs as of March, 31,2026.

** Allotment Committee of the Board of Directors of the Company at their meeting held on November 16, 2023, have allotted 2,17,18,023
(Two Crore Seventeen Lakhs Eighteen Thousand and Twenty Three) equity warrants at a price of ' 114/- per warrant aggregating up to
' 2,47,58,54,622/- (Rupees Two Hundred and Forty Seven Crore Fifty Eight Lakhs Fifty Four Thousand Six Hundred and Twenty Two only)
convertible into equal number of equity shares to the allottees. Out of the total warrants allotted, 93,93,862 warrants were converted into
equity shares and allotted on March 19, 2024; 1,20,00,480 warrants were converted into equity shares and allotted on January 01,2025 and
the Balance Oustanding 3,23,681 warrants were converted into equity shares and allotted on May 24, 2025.

Terms/Rights attached to equity shares

The Company has only one class of equity shares having face value of ' 2/- per share. Each holder of equity shares is entitled to one vote
per share. The Company declares and pay dividends in Indian rupees. The dividend if any proposed by the Board of Directors is subject to
the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the holders of the shares will be entitled to receive remaining assets of the Company, after
distribution of all preferential amounts.

The distribution will be in proportion to the number of shares held by the shareholders.

As per the records of the Company, including its register of shareholders/members and other declaration received from shareholders
regarding beneficial interest, the above shareholding represents both legal and beneficial ownership of shares.

As per the records of the Company, no shares has been allotted pursuant to any contract for consideration other than cash or as bonus
shares during the preceding five financial years. There are no buy back of shares during the preceding five financial years.

in the present value of the cash flows (discounted at the original effective interest rate) was less than 10% of the carrying amount of the
original financial liability.

Accordingly, the Company did not derecognise the financial liability in accordance with Ind AS 109, but instead adjusted the carrying
amount of the liability to reflect the modified cash flows and recognized a modification Loss of ' 30.70 Lakhs in the statement of profit and
loss under Finance Cost for the year ended March 31 2025.

The Company has repaid ' 338 Lakhs in Dec 2025 as per the schedule. The liability has been classified as follows:

Non-Current Borrowings: Representing the outstanding NCD amount repayable beyond 12 months from the reporting date.

Current Borrowings (Refer Note 24(b)(i)): Include an instalment of ' 1900 Lakhs pertaining to the modified NCDs, which is scheduled for
repayment within 12 months from the reporting date as narrated in below table.

These Non-Convertible Debentures (NCDs) are secured by:

1) First charge on specified non-factory land and buildings at Walchandnagar, Flats at Mumbai and Land & Building at Dharwad.

2) First charge by way of pledge of shareholdings of promoters/affiliates amounting to 15.63% of paid-up capital of the company.

3) First charge on the designated bank account held with State Bank of India & Escrow account with HDFC Bank.

The Company continues to comply with the terms and conditions of the debenture trust deed, and the revised classification reflects
the updated contractual maturity profile of the instrument.

Due to the effect of effective rate of interest method, loan amount has been reduced by '93 Lakhs

2) **During the previous year, the Company renegotiated the terms of an existing borrowing with Janta Travels Private Limited which
was originally due for repayment on 30 March 2025. As per the revised terms, the loan tenure was extended by three years, with the
new maturity falling on 29 March 2028.

The modification did not result in a substantial change in terms as per Ind AS 109, since the present value of the modified future cash
flows (discounted at the original effective interest rate) differed by less than 10% from the carrying amount of the financial liability
immediately before the modification.

Accordingly, the Company did not derecognise the original financial liability but instead:

1) * The Working Capital Loan facilities under Consortium Banking arrangement of State Bank of India and Bank of India and consortium
lead by State Bank of India mentioned at (i) above pertaining to HED division are secured by mortgage of residential flat in Airoli,
land and building at Walchandnagar, Offices in Pune and by way of charge on all movable plant and machinery, fixtures, implements,
fittings, furniture, current assets (both present & future) including stock-in-trade, raw material, semi-finished and finished products,
stores and spares, book debts, tools and accessories and other movables pertaining to Heavy Engineering Division at Walchandnagar.
The facilities are further secured by a second charge on all assets given to Neo Special Credit Opportunities Fund. The above are at
an interest rate of 12.00% from Bank of India and 11.70 % from State Bank of India.

2) * The facilities mentioned at (i) also includes facility pertaining to Foundry division, Satara availed from State Bank of India and are

secured by hypothecation of all tangible movable properties and assets, including all stocks of Raw Material, Components, Tools,
Stores Materials, Work-in-Progress, Finished Goods and Book Debts and equitable mortgage on fixed assets of Foundry Division at
Satara Road, Maharashtra.

3) ** The Company has availed Letter of Credit facility from Bank of India and State Bank of India for the purpose of procurement of

Raw Material for HED division. It is secured by mortgage of residential flat in Airoli, land and building at Walchandnagar, Offices
in Pune and by way of charge on all movable plant and machinery, fixtures, implements, fittings, furniture, current assets (both
present & future) including stock-in-trade, raw material, semi-finished and finished products, stores and spares, book debts, tools
and accessories and other movables pertaining to Heavy Engineering Division at Walchandnagar. It is further secured by a second
charge on all assets given to Neo Special Credit Opportunities Fund.

4) ** The Company has Letter of Credit facility from State Bank of India for the purpose of procurement of Raw Material for Foundry

division. It is secured by hypothecation of all those tangible movable properties and assets, including all stocks of Raw Material,
Components, Tools, Stores Materials, Work-in-Progress, Finished Goods and Book Debts and equitable mortgage on fixed assets of
Foundry Division at Satara Road, Maharashtra.

5) The Company has been sanctioned working capital limits in excess of ' 5 crore, in aggregate, at points of time during the year, from
banks or financial institutions on the basis of security of current assets. The quarterly statements filed by the Company with such
banks are in agreement with the Books of Account of the Company of the respective quarters and there is no material descripancies
between quarterly returns filed by the Company with such banks and Unaudited Books of Account of the Company.

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. The Ministry of Labour & Employment published draft Central Rules and FAQs to enable assessment of the financial impact
due to changes in regulations. The Company has assessed and disclosed the incremental impact of these changes on the basis of the best
information available, consistent with the guidance provided by the Institute of Chartered Accountants of India. Considering the materiality
and regulatory-driven, non-recurring nature of this impact, the Company has presented such incremental impact as “Statutory impact of
new Labour Codes" under “Exceptional Items" in the statement of profit and loss for the year ended March 31,2026. The incremental impact
consisting of gratuity of ' 115 Lakhs and compensated absences of ' 21 Lakhs primarily arises due to change in wage definition (Please
refer Note 38). The Company continues to monitor the finalisation of Central / State Rules and clarifications from the Government on other
aspects of the Labour Code and would provide appropriate accounting effect on the basis of such developments as needed.

Note 38 : Exceptional Item

1) 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. The Ministry of Labour & Employment published draft Central Rules and FAQs to enable assessment of the
financial impact due to changes in regulations. The Company has assessed and disclosed the incremental impact of these changes
on the basis of the best information available, consistent with the guidance provided by the Institute of Chartered Accountants of
India. Considering the materiality and regulatory-driven, non-recurring nature of this impact, the Company has presented such
incremental impact as “Statutory impact of new Labour Codes" under “Exceptional Items" in the statement of profit and loss for the
year ended March 31,2026. The incremental impact consisting of gratuity of ' 115 Lakhs and compensated absences of ' 21 Lakhs
primarily arises due to change in wage definition. The Company continues to monitor the finalisation of Central / State Rules and
clarifications from the Government on other aspects of the Labour Code and would provide appropriate accounting effect on the
basis of such developments as needed.

2) During the previous year, the Company had approved a proposed investment of up to ' 1,600 Lakhs in Aicitta Intelligent Technology
Private Limited (“Aicitta") and had initiated legal proceedings before the Hon'ble High Court in relation to the proposed investment
The Company has entered into an amicable settlement with Aicitta Intelligent Technology Private Limited (“Aicitta") in relation to
the petition filed before the Hon'ble High Court. Consequently, an amount of ' 100 Lakh receivable from Aicitta, ' 68 Lakh (net of
related expenses incurred), has been recognised as an exceptional item.

39. Wherever there is '0' in any note, It denotes amount less than ' 1,00,000

41. Details of impact of Ind AS 115

The Company has adopted Ind AS 115 w.e.f April 1,2018. As per the terms of contract with certain customers, the company has
not complied with the delivery terms and have recognised revenue on despatches after the contractual delivery period. Based on
the terms of the contract ' NIL (Previous Year ' 169.69 Lakhs) have been recognised as a contract liability and revenue have been
recognised by reducing an equivalent amount as the same is a variable component.

42. Details of the investment property and its fair value

The fair value of the Company's investment properties as at March 31, 2026 have been arrived '3,157 Lakhs (Previous year '3,157
Lakhs) based on the valuation carried out by a registered valuer as define under rule 2 of Companies (Registered Valuers and
Valuation) Rules, 2017.

The fair value was derived using :

• market comparable approach based on recent market prices without any significant adjustments being made to the market
observable data.

• capitalization of net income method, where the market rentals of all lettable units of the properties are assessed by reference to
the rentals achieved in the lettable units as well as other lettings of similar properties in the neighbourhood. The capitalisation
rate adopted is made by reference to the yield rates observed by the valuers for similar properties in the locality and adjusted
based on the valuers' knowledge of the factors specific to the respective properties.

43. 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 maximize the shareholders'
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. Breaches in meeting the financial
covenants would entail the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants
of any interest-bearing loans and borrowing in the current period. To maintain or adjust the capital structure, the company may
adjust the dividend payment to shareholders, return capital to shareholders and issue new shares.

44. Financial Instruments and Risk Review

Financial Risk Management Framework

Walchandnagar Industries Limited is exposed primarily to fluctuations in foreign currency exchange rates, credit, Interest Risk,
liquidity Risk, which may adversely impact the fair value of its financial instruments. The Company assesses the unpredictability of
the financial environment and seeks to mitigate potential adverse effects on the financial performance of the Company.

Credit Risk

Credit risk is the risk of financial loss arising from counterparty failure to repay or service debt according to the
contractual terms or obligations. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of
creditworthiness as well as concentration of risks. Credit risk is controlled by analysing credit limits and creditworthiness
of customers on a continuous basis to whom the credit has been granted after obtaining necessary approvals for credit.
Financial instruments that are subject to concentrations of credit risk principally consist of trade receivables, unbilled revenue,
investments, derivative financial instruments, cash and cash equivalents, bank deposits and other financial assets. None of the
financial instruments of the Company result in material concentration of credit risk."

Exposure to credit risk

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk was
' 27,777 Lakhs (March 31,2025'26,884 Lakhs) being the total of the carrying amount of balances with banks, bank deposits, trade
receivables, unbilled revenue and other financial assets.

In addition, the Company is exposed to credit risk in relation to financial guarantees given to banks provided by the Company. The
Company's maximum exposure in this respect is the maximum amount the Company would have to pay if the guarantee is called
on.

Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market
prices. Such changes in the values of financial instruments may result from changes in the foreign currency exchange rates, interest
rates, credit, liquidity and other market changes. The Company's exposure to market risk is primarily on account of foreign currency
exchange rate risk.

a) Foreign Currency exchange rate risk

The fluctuation in foreign currency exchange rates may have potential impact on the statement of profit or loss and other
comprehensive income and equity, where any transaction references more than one currency or where assets / liabilities
are denominated in a currency other than the functional currency of the respective entities. Considering the countries
and economic environment in which the Company operates, its operations are subject to risks arising from fluctuations in
exchange rates in those countries. The risks primarily relate to fluctuations in US Dollar, ZAR, EUR against the respective
functional currencies of Walchandnagar Industries Limited.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments
and mutual funds that have quoted price. The fair value of all equity instruments (including bonds) which are traded in the
stock exchange is valued using the closing price as at the reporting period.

Level 2: Fair value of financial instruments that are not traded in an active market (for example, traded bonds, over the
counter derivatives) but is determined using valuation techniques which maximize the use of observable market data and
rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument as observable,
the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable data, the instrument is included in level 3. This is
the case for unlisted equity securities, contingent consideration and indemnification assets.

52. Disclosure pursuant to Ind AS 19 -Employee Benefits

(i) Defined Contribution Plan

The Company makes contributions to Provident Fund and Superannuation Fund which are defined contribution plans for
qualifying employees. Under these Schemes, the Company contributes a specified percentage of the payroll costs to the
respective funds.

The Company recognized expense in the Statement of Profit and Loss amounting to:

• ' 348 Lakhs (March 31,2025: ' 385 Lakhs ) for Provident Fund contributions,

The contributions to these plans are made at specified percentage/applicable amounts.

Contributions to defined contribution plans for key management personnel have been disclosed as per Note 50

(ii) Defined Benefit Plan

The defined benefit plan comprises of gratuity. The gratuity plan is funded. Changes in the present value of Defined Benefit
Obligation (DBO) are representing reconciliation of opening and closing balances thereof and fair value of Trust Fund
Receivable recognized in the Balance Sheet is as under:

54. Contingent Liabilities and Commitments

(a) Claims against the company not acknowledged as debt

(i) Demand of Non Agricultural (NA) Tax of ' 74.76 Lakhs is raised by Tahsildar, Indapur (Previous year ' 74.76 Lakhs) out of
which ' 20 Lakhs is paid under protest by the company. No provision has been made in the accounts as the company
has not accepted the liability and the matter is sub-judice.

(ii) Demand on account of fixation of Annual Rateable Value of Property at Pune, amounting to ' 99.02 Lakhs & interest/
penalty, if any, (for the period April 1,2008 to March 31,2012) was raised by the local authorities (Previous year ' 99.02
Lakhs). No provision has been made in the books of accounts. The Company has not accepted the liability and the same
is sub-judice. The matter is pending in Mumbai High Court for adjudication.

(iii) The Sales Tax Authority, Maharashtra has raised demand of ' 367.14 Lakhs ( Previous Year ' 367.14 Lakhs) for 2013-2014
under Central Sales Tax Act,1956. The Company has disputed the demand and filed an appeal before The Sales Tax
Appellate Tribunal, Pune. Company has so far paid ' 204.78 Lakhs under protests (included under the head loans and
advances).

(iv) The Customs Authorities, Chennai have raised demand of ' 64.50 Lakhs (Previous Year ' 64.50 Lakhs) . Company has
disputed the demand and has filed an appeal before Madras High Court. On the basis of legal opinion the Company
does not expect any liability. Company has already paid ' 53.75 Lakhs under protests.

(v) The Commissioner Central GST, Pune II Commissionerate has issued Order for Service Tax Demand U/s 73(1) & 73(2)
along with Penalty U/s 78(1) of the Finance Act, 1994 for ' 667.33 Lakhs ( Previous Year ' 667.33 Lakhs) and ' 667.33
Lakhs ( Previous Year Rs 667.33 Lakhs)respectively for the Period March 2013 to December 2015. The Company has
disputed the demand and has filed an appeal before The CESTAT Appellate Tribunal, Mumbai. Company has paid
' 50.05 Lakhs under protests (included under the head loans and advances).

(vi) The Commercial Tax Officer, Hyderabad has raised the demand by disallowing the ' 313.66 Lakhs (Previous Year
' 313.66 Lakhs) refund paid to the Company in 2011 wrongly. Company disputed the order and filed writ petition in
High Court seeking justice in the matter. High Court heard the petition and granted stay till the proceeding concluded.

(vii) Company has received a demand of ' 50.68 Lakhs (Previous Year ' 50.68 Lakhs)from Employee's Provident Fund office
The company has contested the demand raised, and filed a writ petition with Mumbai High Court. No provision is being
made against the same based on the legal advice.

(Viii) Company has received a Tax demand for the F.Y. 2018-19 of ' 68.99 Lakhs (Previous Year ' 68.99 Lakhs) from Tamil Nadu
Commercial Tax Department on 01 March 2024. The Company has disputed the demand and has filed an appeal before
The Appelate Authority Chennai within 90 days from the date of order with pre-deposit 10% of tax demand. Appeal
admitted by Appeal Authority vide APL-02 ARN NO. AD3305240297254 DT. 24/03/2025

(ix) Company has received a Tax demand for the F.Y. 2019-20 of ' 36.70 Lakhs (Previous Year ' 36.70 Lakhs) from Tamil Nadu
Commercial Tax Department on 01 March 2024. The Company has disputed the demand and has filed an appeal before
The Appelate Authority Chennai within 90 days from the date of order with pre-deposit 10% of tax demand. Appeal
admitted by Appeal Authority vide APL-02 ARN NO.AD330524033020W DT. 25/03/2025

(x) Company has received a Tax demand for the F.Y. 2020-21 of ' 2.57 Lakhs (Previous Year ' 2.57 Lakhs) from Tamil Nadu
Commercial Tax Department on 01 March 2024. The Company has disputed the demand and has filed an appeal before
The Appelate Authority Chennai within 90 days from the date of order with pre-deposit 10% of tax demand. Appeal
admitted by Appeal Authority vide PL-02 ARN NO. ZD330425029135Q Dt. 03/04/2025

(xi) Company has received a Tax demand for the F.Y. 2019-20 of ' 6.96 Lakhs (Previous Year ' 6.96 Lakhs) from Tamil Nadu
Commercial Tax Department received on 29 August 2024. The Company has disputed the demand and has filed an
appeal before The Appelate Authority Chennai within 90 days from the date of order with pre-deposit 10% of tax
demand. Appeal admitted by Appeal Authority Vide APL-02 ARN NO.AD331124017051Y DT. 25/03/2025

(xii) Certain cases filed against the company by the Ex-employees of Heavy Engineering Division and Foundry Division for
compensation are pending before the labour courts - Amounts unascertained.

55. Proposed Investment in Aicitta Intelligent Technology Private Limited and Legal Proceedings :

During the month of March 2025, the Board of Directors of the Company approved an investment of up to ' 1600 Lakhs in Aicitta
Intelligent Technology Private Limited ("Aicitta") by way of subscription to a combination of equity shares and compulsorily
convertible preference shares, which would result in the Company acquiring approximately 60.3% ownership on a fully diluted
basis.

Subsequently, in May 2025, the Company filed a petition before the Hon'ble High Court seeking interim relief and protection
measures in relation to the proposed investment, including to preserve and secure its rights under the aforementioned agreements.
The matter is presently under judicial consideration.

As of the balance sheet date, the proposed investment has not been consummated and, accordingly, has not been recognised in the
financial statements. The outcome of the legal proceedings will determine the future course of the investment.

Current Status: The matter has been amicably settled. AICITTA has agreed to pay WIL a sum of ' 100 Lakhs in 5 instalments of ' 20
Lakhs each starting from April 2026 to Aug 2026.

This disclosure has been made in accordance with the requirements of Ind AS 10 - Events after the Reporting Period and Ind AS
112 - Disclosure of Interests in Other Entities, considering the significance and potential impact on the Company's future financial
position. (Refer Note Number-38)

58. Suspension and Lockout at Foundry Division:

The operations at the Company's Foundry Division were suspended with effect from March 20, 2025, due to violent collective acts by
the workmen. The suspension was subsequently withdrawn and the Company declared a lockout effective April 12, 2025, thereby
continuing the halt in operations. The matter has been settled amicably with employees and the operation has been resumed on
17th Nov 2025. The plant is now put to operation in normal course.

59. 'Trade Receivables', 'Trade Payables' 'Loan and Advances Receivable and Payable

Balance under the head 'Trade Receivables', 'Trade Payables', 'Loan and Advances Receivable and Payable' are shown as per books of
accounts subject to confirmation by concerned parties and adjustment if any, on reconciliation thereof.

60. Other Statutory Information

1. 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 Benami Transactions (Prohibition) Act, 1988 (45 of 1988).

2. The Company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or
section 560 of Companies Act, 1956.

3. The Company does not have any charges or satisfaction yet to be registered with ROC beyond the statutory period.

4. The Company do not have any transactions with Crypto Currency or Virtual Currency where the Company has traded or
invested in Crypto Currency or Virtual Currency during the year.

5. The Company has not advanced or loaned or invested funds to any other persons or entities, 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.

6. The Company has not received any fund from any persons or entities, 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.

7. The Company does not have any 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.

8. Corporate social responsibility - As per Section 135 of the Companies Act, 2013, the company does not meeting the
applicability threshold, hence no need to spend on corporate social responsibility (CSR) activities as per the Provision of the
Act.

9. During the year, in accordance with the provisions of Section 186, the Company has neither granted any loans nor made any
investments, nor provided any guarantees or securities to any parties.

10. The company is not declared wilful defaulter by a bank or financial institution or other lender.

61. Audit Trail

In accordance with Rule 3(1) of the Companies (Accounts) Rules, 2014, as amended and made effective from April 1, 2023, the
Company hereby confirms that:

a) The accounting software used for maintaining books of account has the functionality to record an audit trail (edit log) for each
and every transaction recorded in the system.

b) The audit trail feature was enabled and remained operational throughout the financial year.

c) The audit trail feature has not been tampered with and has been preserved in accordance with applicable statutory provisions.

d) The Company has ensured appropriate internal controls to monitor and retain the audit trail as part of the financial records.
The above measures are consistent with the principles of faithful representation and reliability under the Indian Accounting
Standards (Ind AS), supporting transparency and integrity in financial reporting."

62. Previous year's figures have been regrouped/ reclassified / rearranged wherever necessary, to conform to current year's presentation.