2.19. Provisions, contingent liabilities, contingent assets

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

A disclosure for a contingent liability is made when there is a possible obligation or a
present obligation that may, but probably will not require an outflow of resources. When
there is a possible obligation or a present obligation in respect of which likelihood of
outflow of resources is remote, no provision or disclosure is made.

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

A contingent asset is not recognised but disclosed in the standalone Ind AS Financial
Statement where on inflow of economic benefits is possible.

Our capital commitments were comprised primarily of commitment given/ purchase orders
issued for purchase of property, plant and equipment (net of advance given and material
already supplied).

2.20. Earnings per share

Basic earnings per share is computed using the net profit for the year attributable to the
shareholders’ and weighted average number of shares outstanding during the year. The
weighted average numbers of shares also include fixed number of equity shares that are
issuable on conversion of compulsorily convertible preference shares, debentures or any
other instrument, from the date consideration is receivable (generally the date of their
issue) of such instruments.

Diluted earnings per share is computed using the net profit for the year attributable to the
shareholder’ and weighted average number of equity and potential equity shares
outstanding during the year including share options, convertible preference shares and
debentures, except where the result would be anti-dilutive. Potential equity shares that are
converted during the year are included in the calculation of diluted earnings per share, from
the beginning of the year or date of issuance of such potential equity shares, to the date of
conversion.

2.21. Segment reporting

Operating segments are reported in a manner consistent with the internal reporting
provided to the chief operating decision-maker. The chief operating decision-maker, who
is responsible for allocating resources and assessing performance of the operating
segments, has been identified as the Board of Directors that makes strategic decisions.

2.22. 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. Financial assets and financial
liabilities are initially measured at fair value. Transaction costs that are directly attributable
to the acquisition or issue of financial assets and financial liabilities (other than financial
assets and financial liabilities at fair value through profit or loss) are added to or deducted
from the fair value of the financial assets or financial liabilities, as appropriate, on initial
recognition. Transaction costs directly attributable to the acquisition of financial assets or
financial liabilities at fair value through profit or loss are recognized immediately in profit
or loss. Since, trade receivables do not contain significant financing component they are
measured at transaction price.

2.22.1. Financial assets

All regular way purchases or sales of financial assets are recognized and derecognized on
a trade date basis. Regular way purchases or sales are purchases or sales of financial assets
that require delivery of assets within the time frame established by regulation or convention
in the marketplace. All recognized financial assets are subsequently measured in their
entirety at either amortized cost or fair value, depending on the classification of the
financial assets.

Classification of financial assets

Debt instruments that meet the following conditions are subsequently measured at
amortized cost (except for debt instruments that are designated as at fair value through
profit or loss on initial recognition):

• the asset is held within a business model whose objective is to hold assets in order to
collect contractual cash flows; and

• the contractual terms of the instrument give rise on specified dates to cash flows that
are solely payments of principal and interest on the principal amount outstanding.

All other financial assets are subsequently measured at fair value.

Effective interest method

The effective interest method is a method of calculating the amortized cost of a debt
instrument and of allocating interest income over the relevant period. The effective interest
rate is the rate that exactly discounts estimated future cash receipts (including all fees and
points paid or received that form an integral part of the effective interest rate, transaction
costs and other premiums or discounts) through the expected life of the debt instrument,
or, where appropriate, a shorter period, to the gross carrying amount on initial recognition.

Income is recognized on an effective interest basis for debt instruments other than those
financial assets classified as at FVTPL. Interest income is recognized in profit or loss and
is included in the “Other income” line item.

Investments in equity instruments at FVTOCI

On initial recognition, the Company can make an irrevocable election (on an instrument-
by-instrument basis) to present the subsequent changes in fair value in other
comprehensive income pertaining to investments in equity instruments. This election is
not permitted if the equity investment is held for trading. These elected investments are
initially measured at fair value plus transaction costs. Subsequently, they are measured at
fair value with gains and losses arising from changes in fair value recognized in other
comprehensive income and accumulated in the ‘Reserve for equity instruments through
other comprehensive income’. The cumulative gain or loss is not reclassified to profit or
loss on disposal of the investments.

A financial asset is held for trading if:

• It has been acquired principally for the purpose of selling it in the near term; or

• On initial recognition it is part of a portfolio of identified financial instruments that the
Company manages together and has a recent actual pattern of short-term profit-taking;
or

• It is a derivative that is not designated and effective as a hedging instrument or a
financial guarantee. Dividends on these investments in equity instruments are
recognized in profit or loss when the Company’s right to receive the dividends is
established, it is probable that the economic benefits associated with the dividend will
flow to the entity, the dividend does not represent a recovery of part of cost of the

investment and the amount of dividend can be measured reliably. Dividends
recognized in profit or loss are included in the ‘Other income’ line item.

Financial assets at fair value through profit or loss (FVTPL)

Investments in equity instruments are classified as at FVTPL, unless the Company
irrevocably elects on initial recognition to present subsequent changes in fair value in other
comprehensive income for investments in equity instruments which are not held for
trading.

Financial assets at FVTPL are measured at fair value at the end of each reporting period,
with any gains or losses arising on re-measurement recognized in profit or loss. The net
gain or loss recognized in profit or loss incorporates any dividend or interest earned on the
financial asset and is included in the ‘Other income’ line item. Dividend on financial assets
at FVTPL is recognized when the Company’s right to receive the dividends is established,
it is probable that the economic benefits associated with the dividend will flow to the entity,
the dividend does not represent a recovery of part of cost of the investment and the amount
of dividend can be measured reliably.

Impairment of financial assets

The Company recognizes loss allowances using the expected credit loss (ECL) model
based on ‘simplified approach’ for the financial assets which are not fair valued through
profit or loss. Loss allowance for trade receivables with no significant financing
component is measured at an amount equal to lifetime ECL. For all other financial assets,
expected credit losses are measured at an amount equal to the twelve-month ECL, unless
there has been a significant increase in credit risk from initial recognition in which case
those are measured at lifetime ECL. The amount of expected credit losses (or reversal) that
is required to adjust the loss allowance at the reporting date to the amount that is required
to be recognized is recognized as an impairment gain or loss in statement of profit and loss.

For Trade Receivables, the Company uses the simplified approach permitted by Ind AS
109 Financial Instruments which requires expected life time losses to be recognized from
initial recognition of receivables.

De-recognition of financial asset

The Company de-recognizes a financial asset when the contractual rights to the cash flows
from the asset expire, or when it transfers the financial asset and substantially all the risks
and rewards of ownership of the asset to another party. If the Company neither transfers
nor retains substantially all the risks and rewards of ownership and continues to control the
transferred asset, the Company recognizes its retained interest in the asset and an
associated liability for amounts it may have to pay. If the Company retains substantially
all the risks and rewards of ownership of a transferred financial asset, the Company

continues to recognize the financial asset and also recognizes a collateralized borrowing
for the proceeds received.

On de-recognition of a financial asset in its entirety, the difference between the asset’s
carrying amount and the sum of the consideration received and receivable and the
cumulative gain or loss that had been recognized in other comprehensive income and
accumulated in equity is recognized in profit or loss if such gain or loss would have
otherwise been recognized in profit or loss on disposal of that financial asset.

On de-recognition of a financial asset other than in its entirety (e.g., when the Company
retains an option to repurchase part of a transferred asset), the Company allocates the
previous carrying amount of the financial asset between the part it continues to recognize
under continuing involvement, and the part it no longer recognizes on the basis of the
relative fair values of those parts on the date of the transfer. The difference between the
carrying amount allocated to the part that is no longer recognized and the sum of the
consideration received for the part no longer recognized and any cumulative gain or loss
allocated to it that had been recognized in other comprehensive income is recognized in
profit or loss if such gain or loss would have otherwise been recognized in profit or loss
on disposal of that financial asset. A cumulative gain or loss that had been recognized in
other comprehensive income is allocated between the part that continues to be recognized
and the part that is no longer recognized on the basis of the relative fair values of those
parts.

2.22.2. Financial liability and equity instrument
Classification as debt or equity

Debt and equity instruments issued by the Company are classified as either financial
liabilities or as equity in accordance with the substance of the contractual arrangements
and the definitions of a financial liability and an equity instrument.

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an
entity after deducting all of its liabilities. Equity instruments issued by the Company are
recognized at the proceeds received, net of direct issue costs. Repurchase of the Company’s
own equity instruments is recognized and deducted directly in equity. No gain or loss is
recognized in profit or loss on the purchase, sale, issue or cancellation of the Company’s
own equity instruments.

Financial liabilities

All financial liabilities are subsequently measured at amortized cost using the effective
interest method or at FVTPL.

However, financial liabilities that arise when a transfer of a financial asset does not qualify
for de-recognition or when the continuing involvement approach applies, financial
guarantee contracts issued by the Company, and commitments issued by the Company to
provide a loan at below-market interest rate are measured in accordance with the specific
accounting policies set out below.

Financial liabilities at FVTPL

Financial liabilities are classified as at FVTPL when the financial liability is either
contingent consideration recognized by the Company as an acquirer in a business
combination to which Ind AS 103 applies or is held for trading or it is designated as at
FVTPL.

A financial liability is classified as held for trading if:

• it has been incurred principally for the purpose of repurchasing it in the near term;
or

• on initial recognition it is part of a portfolio of identified financial instruments that
the Company manages together and has a recent actual pattern of short-term profit¬
taking; or

• it is a derivative that is not designated and effective as a hedging instrument.

A financial liability other than a financial liability held for trading or contingent
consideration recognized by the Company as an acquirer in a business combination to
which Ind AS 103 applies, may be designated as at FVTPL upon initial recognition if:

• such designation eliminates or significantly reduces a measurement or recognition
inconsistency that would otherwise arise;

• the financial liability forms part of a group of financial assets or financial liabilities
or both, which is managed and its performance is evaluated on a fair value basis,
in accordance with the Company’s documented risk management or investment
strategy, and information about the grouping is provided internally on that basis;
or

• it forms part of a contract containing one or more embedded derivatives, and Ind
AS 109 permits the entire combined contract to be designated as at FVTPL in
accordance with Ind AS 109.

Financial liabilities at FVTPL are stated at fair value, with any gains or losses arising on
re-measurement recognized in profit or loss. The net gain or loss recognized in profit or
loss incorporates any interest paid on the financial liability and is included in the ‘Other
income’ line item.

However, for non-held-for-trading financial liabilities that are designated as at FVTPL, the
amount of change in the fair value of the financial liability that is attributable to changes
in the credit risk of that liability is recognized in other comprehensive income, unless the
recognition of the effects of changes in the liability’s credit risk in other comprehensive
income would create or enlarge an accounting mismatch in profit or loss, in which case
these effects of changes in credit risk are recognized in profit or loss. The remaining
amount of change in the fair value of liability is always recognized in profit or loss.
Changes in fair value attributable to a financial liability’s credit risk that are recognized in
other comprehensive income are reflected immediately in retained earnings and are not
subsequently reclassified to profit or loss.

Gains or losses on financial guarantee contracts and loan commitments issued by the
Company that are designated by the Company as at fair value through profit or loss are
recognized in profit or loss.

Financial liabilities subsequently measured at amortized cost

Financial liabilities that are not held-for-trading and are not designated as at FVTPL are
measured at amortized cost at the end of subsequent accounting periods. The carrying
amounts of financial liabilities that are subsequently measured at amortized cost are
determined based on the effective interest method. Interest expense that is not capitalized
as part of costs of an asset is included in the ‘Finance costs’ line item. The effective interest
method is a method of calculating the amortized cost of a financial liability and of
allocating interest expense over the relevant period. The effective interest rate is the rate
that exactly discounts estimated future cash payments (including all fees and points paid
or received that form an integral part of the effective interest rate, transaction costs and
other premiums or discounts) through the expected life of the financial liability or (where
appropriate) a shorter period, to the gross carrying amount on initial recognition.

Financial guarantee contracts

A financial guarantee contract is a contract that requires the issuer to make specified
payments to reimburse the holder for a loss it incurs because a specified debtor fails to
make payments when due in accordance with the terms of a debt instrument.

Financial guarantee contracts issued by the Company are initially measured at their fair
values and, if not designated as at FVTPL, are subsequently measured at the higher of:

• the amount of loss allowance determined in accordance with impairment
requirements of Ind AS 109; and

• the amount initially recognized less, when appropriate, the cumulative amount of
income recognized in accordance with the principles of Ind AS 18.

Compound financial instruments

The liability component of a compound financial instrument is recognized initially at fair
value of a similar liability that does not have an equity component. The equity component
is recognized initially as the difference between the fair value of the compound financial
instrument as a whole and the fair value of the liability component. Any directly
attributable transaction costs are allocated to the liability and the equity components, if
material, in proportion to their initial carrying amounts.

Subsequent to the initial recognition, the liability component of a compound financial
instrument is measured at amortized cost using the effective interest rate method. The
equity component of a compound financial instrument is not re-measured subsequent to
initial recognition except on conversion or expiry.

Offsetting of financial instruments

Financial 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 recognized amounts
and there is an intention to settle on a net basis, to realize the assets and settle the liabilities
simultaneously.

Reclassification

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
management determines change in the business model as a result of external or internal
changes which are significant to the Company’s operations. 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 recognized gains, losses (including impairment gains or losses) or interest.

De-recognition of financial liabilities

The Company de-recognizes financial liabilities when, and only when, the Company’s
obligations are discharged, cancelled or have expired. An exchange between with a lender
of debt instruments with substantially different terms is accounted for as an extinguishment
of the original financial liability and the recognition of a new financial liability. Similarly,
a substantial modification of the terms of an existing financial liability (whether or not
attributable to the financial difficulty of the debtor) is accounted for as an extinguishment
of the original financial liability and the recognition of a new financial liability. The
difference between the carrying amount of the financial liability de-recognized and the
consideration paid and payable is recognized in profit or loss.

2.23 Dividend Payable

The final dividend on shares is recorded as a liability on the date of approval by the
shareholders and interim dividends are recorded as a liability on the date of declaration by
the Company’s Board of Directors

3. Recent Accounting Pronouncements

Ministry of Corporate Affairs (‘MCA’) notifies new standards or amendments to the
existing standards under the Companies (Indian Accounting Standards) Rules, 2015 as
amendeds from time to time. For the year ended March 31, 2026, MCA notified the
amendments to Ind AS 1, Presentation of Financial Statements, which are not yet effective.
The amendment relates to classification of liabilities as current or non-current and non¬
current liabilities with covenants. The Company has no impact of these amendment in its
classification criteria of current and non-current liabilities.

18.1 Terms/ Rights attached to Equity Shares :

The Company has only one class of equity shares having a face value ofRs.5/- per share*. They entitle the holder to participate in the dividends, and to share in the proceeds of
the winding up the Company in proportion to the number of and amounts paid on the shares held. Each holder of equity shares is entitled to one vote per share. The Company
declares and pays dividend in Indian rupees

18.5 Changes in Equity Share Capital

The Company had increased the authorised share capital from existing 35,000,000 equity shares of Rs.10 each to 104,000,000 equity shares of Rs.5 each,
which was approved by the Board of Directors in their meeting held on February 05, 2025 and shareholders in their Extraordinary General meeting held on
February 06, 2025, respectively.

Pursuant to a resolution passed in extraordinary general meeting of the Company dated February 06, 2025, shareholders had approved the split of each equity
share having face value of Rs. 10 each into equity shares of face value of Rs. 5 each.("the split").

On February 06, 2025, the Board of Directors of the Company had approved fully paid bonus shares in the ratio of 111 equity shares for every 1 existing equity
share and the same had been duly approved by the shareholders of the Company.

19.1 Nature and Purpose of Reserves
Securities Premium Reserve

(a) Securities premium is used to record the premium received on issue of shares. The reserve is utilised in accordance with the provisions of the Companies Act,
2013.

Capital Redemption Reserve

_(b) Capital redemption reserve created in relation to buyback of shares as required under the provisions of the Companies Act, 2013 the same is utilised in
accordance with the provisions of the said Act.

Retained Earnings

(c) Retained earnings represent the accumulated earnings net of losses if any made by the Company over the years as reduced by dividends or other distributions
paid to the shareholders and includes other comprehensive income

General Reserve

(d) General reserves represents portion of Company's earnings that is set aside for future use and have been utilised for bonus issue and other purposes in
accordance with the provisions of the Companies Act, 2013.

Other Comprehensive Income - Re-measurement of Defined benefit plan

^(e) Other Comprehensive Income represents remeasurement of net defined benefit liability / asset, net of taxes.

(b) Nature of Security:

Term loans from Bank stated against Sr No. 1 to 4 above.

Secured by first pari passu charge on the entire movable and immovable properties, including plant and machinery of the Company, both present and
future. Additionally the loans are guaranteed by the Directors of the Company.

Term loans from Bank stated against Sr No.5 and 6 above

Secured by exclusive charge on Vehicles. Additionally the loans are guaranteed by the Directors of the Company.

(c) The Company has complied with all the terms and conditions of the borrowing arrangements during the year. There were no defaults in repayment of principal or
interest, nor were there any breaches of loan covenants as at or during the year ended March 31, 2026.

42 Disclosure Relating to Employee Benefits

(i) Labour Law

The Code on Social Security, 2020 has been notified and made effective from November 21, 2025, thereby replacing the erstwhile Payment of Gratuity Act,
1972. The Code on Social Security, 2020 has updated the definition of the gratuity salary to “Wages” as defined in the Code on Wages, 2019. The Company has
assessed the impact of the Code and has recognise the past service cost for Rs. 1.50 in Employee Benefit expense for the year ended March 31, 2026.

(ii) Defined contribution plan

The Company has certain defined contribution plans. The obligation of the Company is limited to the amount contributed and it has no further contractual
obligation. Following is the details regarding Company's contributions made during the year:

(iii) Defined benefit plans

(a) Defined Benefit Obligations - Gratuity (Funded)

i. The Company has a defined benefit gratuity plan in India (funded). The Company’s defined benefit gratuity plan is a final salary plan for Indian employees,
which requires contributions to be made to a separately administered fund. The gratuity plan provides a lump sum payment to vested employees at retirement,
death, incapacitation or termination of employment, of an amount equivalent to 15 days' salary for each completed year of service. Vesting occurs upon
completion of five continuous years of service as governed by the Code on Social Security, 2020. The Present value of the defined benefit obligations and related
current service cost were measured using the Projected Unit Credit Method, with actuarial valuation being carried out at each Balance Sheet date. The scheme is
funded with an insurance company in the form of qualifying insurance policy. The Company expects to pay Rs. 2 in contributions to defined benefit plan in FY
2026-27.

ii. The following tables summarize the components of net benefit expense recognized in the statement of profit and loss and the funded status and amounts
recognized in the balance sheet for the respective plan.

Risks Associated with Plan Provisions

Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such Company is exposed to various risks as follows:

Notes:-

Cost of Material Consumed = Cost of raw materials and components consumed Increase/(decrease) in inventories of finished goods and Work in progress
EBITDA = Profit before exceptional items Taxes Finance costs Depreciation and amortization expense- other income
EBIT = Profit before exceptional items Taxes Finance costs - other income
PBIT = Profit before exceptional items Taxes Finance costs

Adjusted expenses = Purchases Other expenses Manufacturing expenses adjusted for CSR expenses and other non cash expenses
Debt ^: Debt = Dross Debt (Noncurrent borrow mgs Current borro w ings Curreut maturities of londterm debt)

Capital Employed = Total equity Non-Current liabilities
Explanations:

A. Current Ratio: Growth in bank balances, accounts receivable, and inventories

B. Debt Equity Ratio: Due to Repayment of Borrowings and Increase in Shareholders wealth

C. Debt Service Coverage Ratio: Improved due to growth in EBITDA, driven by increased sales and improved operating profitability compared to the previous
financial year

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

47 Segment Information:

(a) Operating Segments

The Company's Managing Director has been identified as the Chief Operating Decision Maker ('CODM'), since Managing Director is responsible for all major
decision w.r.t. the preparation and execution of business plan, preparation of budget and other key decisions. Managing director/CODM reviews the operating
results at the Company level to make decisions about the Group's performance. Accordingly, management has identified the business as single operating segment
i.e. Hydraulic fittings for auto and industrial sector. Accordingly, there is only one Reportable Segment for the company which is “Hydraulic fittings for auto and
industrial sector”, hence no specific disclosures have been made.

(i) Methods and assumptions used to estimate the fair values

The fair values of the financial assets and liabilities are 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:

(a) The carrying amounts of receivables and payables which are short term in nature such as trade receivables, loans given to related parties and others, other current financial assets, other bank
balances, trade payables,borrowings,other current financial liabilities.

(b) For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.The fair values for long term security deposits and other non-current financial
assets are calculated based on discounted cash flow method. They are classified as level 3 fair values in the fair value hierarchy due to the use of unobservable inputs.

(c) The fair values for non current borrowings is based on discounted cash flow technique using a current borrowing rate. They are classified as level 3 fair values in the fair value hierarchy due to use of
unobservable inputs.

(d) For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

49 Financial Risk Management

The Company’s Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk management framework. The board of directors is responsible for developing
and monitoring the Company’s risk management policies. The Company’s risk management policies are established to identify and analyse the risk faced by the Company, to set appropriate risk
limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s activities.
The Company’s Board of Directors oversees how management monitors compliance with the Company’s risk management policies and procedures, and reviews the adequacy of the risk management
framework in relation to the risks faced by the Company. The Board of Directors is assisted in its oversight role by internal audit team. Internal audit team undertakes both regular and ad hoc reviews
of risk management controls and procedures, the results of which are reported to the Board of Directors.

The Company has exposure to the following risks arising from financial instruments:

• Credit risk;

• Liquidity risk;

• Market risk

• Interest rate risk

(a) Credit Risk :

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

Trade receivable and Loans and Advances

Customer credit risk is managed by each business unit subject to the Company's established policy, procedures and control relating to customer credit risk management. To manage trade receivable,
the Company periodically assesses the financial reliability of customers, taking into account the financial conditions, economic trends, analysis of historical bad debts and aging of such receivables.

The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in Note 48(a). The Company does not hold collateral as security. The
Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and industries and operate in largely independent markets.

The Company uses a provision matrix whereby trade receivables are considered doubtful based on past trends where such receivables are outstanding for more than a year. The allowance for lifetime
expected credit loss on customer balances for period and year ended Jun 30, 2025, March 31, 2025 is as follows..

(b) Liquidity Risk :

Liquidity risk is the risk that the company will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. The
Company's liquidity risk management policies include sufficient liquidity to meet its liabilities when they are due, by maintaining adequate sources of financing from banks at an optimised cost
whenever considered appropriate. In addition, processes and policies related to such risks are overseen by senior management. The Company’s senior management monitors the Company’s net
liquidity position through rolling forecasts on the basis of expected cash flows. The Company also monitors the level of expected cash inflows on trade receivables together with expected cash
outflows on trade payables.

Financing arrangements

The Company has sufficient sanctioned line of credit from its bankers / financiers (including overdraft facility) commensurate to its business requirements.The Company reviews its line of credit
available with bankers and lenders from time to time to ensure that at all point of time there is sufficient availability of line of credit. The Company pays special attention to the net operating working
capital invested in the business. In this regard, as in previous years, considerable work has been performed to control and reduce collection periods for trade and other receivables, as well as to
optimise accounts payable with the support of banking arrangements to mobilise funds

(c) 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. The Company is exposed in the ordinary course of business
to risks related to Interest rate, foreign currency exchange rate and prices

(i) Interest Rate Risk

The Company's main interest rate risk arises from long-term borrowings with variable rates, which expose the Company cash flow interest rate risk.

Foreign Currency Sensitivity Analysis:

The following details demonstrates that the Company's sensitivity to a 1% increase and decrease in the INR against the relevant foreign currencies. The sensitivity analysis includes only outstanding
foreign currency denominated monetary items as tabulated above and adjusts their translation at the year end for a 1% change in foreign currency rates. A positive number below indicates an
increase in profit or equity and vice-versa.

(iii) Commodity Price Risk

The Company’s activities are exposed to steel price risks and therefore its overall risk management program focuses on the volatile nature of the steel and cement market, thus seeking to minimize
potential adverse effects on the Company’s financial performance on account of such volatility. The risk management committee regularly reviews and monitors riskmanagement principles, policies,
and risk management activities.

(iv) Equity Price risk

The Company is mainly exposed to the price risk due to its investment in shares and mutual funds. The price risk arises due to uncertainties about the future market values of these
investments.These are exposed to price risk. The Company's exposure to equity shares and mutual fund price risk arises from movement of price of related shares and mutual fund units measured at
fair value through profit and loss.

Price risk sensitivity analysis:

0.10% increase or decrease in prices will have the following impact on profit/ (loss) before tax and on other components of equity

50 Capital Management
Risk Management

The Company manages its capital to ensure that it will be able to continue as a going concern so, that they can continue to provide returns for shareholders and benefits for other stakeholders and
maintain an optimal capital structure to reduce cost of capital. The Company manages its capital structure and make adjustments to, in light of changes in economic conditions, and the risk
characteristics of underlying assets. In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to ensure that it meets financial covenants attached to
the borrowings that define the capital structure requirements.

Consistent with others in the industry, the Company monitors capital on the basis of the gearing ratio. The ratio is calculated as net debt divided by equity. Net debt is calculated as total borrowing
(including current and non-current terms loans as shown in the balance sheet).

The Company monitors capital using 'Total Debt' to 'Equity'. The Company's Total Debt to Equity are as follows:

51 Additional Regulatory Information pursuant to Division II Schedule III to the Companies Act, 2013 are furnished to the extent applicable to the Company.

(1) 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 Funding Party (Ultimate Beneficiaries) or

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

(2) The Company has no 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).

(3) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property

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

(5) The Company has not traded or invested in Crypto currency or Virtual Currency during the current or previous year

(6) The Company does not have outstanding term derivative contracts as at the end of respective years.

(7) The company have not received funds (which are material either individually or in the aggregate )from any person or entity including foreign entities ( Funding parties), with the understanding
,whether recorded or 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.

(8) There are no amounts which are required to be transferred to the Investor Education and Protection Fund by the Company.

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

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

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

(12) The Company does not have any transactions with struck off companies.

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

(14) The Company has borrowings from banks and financial institutions on the basis of security of current assets. The quarterly returns or statements of current assets filed by the Company with
banks and financial institutions are in agreement with the books of accounts.

53 The Company uses an accounting software for maintaining its books of accounts 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 accounting software. The audit trail operated throughout the year for all transactions recorded at application level and such audit trail feature has not been
tampered with. The audit trail feature is not enabled for direct changes at database level. Further the audit trail feature, where enabled, has been preserved by the Company as per the statutory
requirements of record retention.

54 'Ministry of Corporate Affairs (‘MCA’) notifies new standards or amendments to the existing standards under the Companies (Indian Accounting Standards) Rules, 2015 as amended from time to
time. For the year ended March 31, 2026, the MCA has notified IND AS 1 Presentation of Financial statements relating to classification of liabilities as current or non-current and non-current
liabilities with covenants which are applicable, w.e.f. April 2026.The amendments relates to classification of liabilities as Current or Non-Current and Non-Current Liability with covenants. The
Company does not expect any material impact from the adoption of these amendments on the classification of its current and non-current liabilities