(b) Rights, preferences and restrictions attached to equity shares

The Company has a single class of equity shares. Accordingly, all equity shares rank equally with regard to dividends and share in the company's residual assets on winding up. The equity shareholders are entitled to receive dividend as declared from time to time, subject to preferential right of preference shareholders to payment of dividend. The voting rights of an equity shareholder on a poll (not on show of hands) are in proportion to his/its share of the paid-up equity share capital of the company. Voting rights cannot be exercised in respect of shares on which any call or other sums presently payable has not been paid. Failure to pay any amount called up on shares may lead to their forfeiture. On winding up of the company, the holders of equity shares will be entitled to receive the residual assets of the company, remaining after distribution of all preferential amounts, in proportion to the number of equity shares held.

Nature and purpose of reserves General reserve

The general reserve is a free reserve which is used from time to time to transfer profits from / to retained earnings for appropriation purposes. As the general reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the general reserve will not be reclassified subsequently to statement of profit and loss.

Securities premium

Securities premium is used to record the premium received on issue of shares. It is utilised in accordance with the provisions of Companies Act, 2013.

Retained earnings

Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, capital redemption reserve, dividends or other distributions paid to shareholders.

15 Capital management

The Company's policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. It sets the amount of capital required on the basis of annual business and long-term operating plans which include capital and other strategic investments. The funding requirements are met through equity and cash generated through operations. The Company does not have any external borrowings. The Company monitors capital using a ratio of 'adjusted net debt' to 'total equity'. For this purpose, adjusted net debt is defined as total liabilities, comprising provisions, financial liabilities, other current liabilities less cash and cash equivalents. Total equity comprises all components of equity.

The amount of INR 3.22 recognized in contract liability at the beginning of the period has been recognized as revenue for the year ended 31 March 2025.

The contract liabilities primarily relate to the advance consideration received from customer.

Revenue is measured based on the consideration specified in a contract with a customer. The company recognizes revenue when it transfers control over the good to the customer. Invoice are generated at that point in time. Invoice are usually payable within 45 days and no discount are provided.

29 Assets and liabilities relating to employee benefits

See accounting policy in Note 3.7 A. Defined contribution plan

The Company makes Provident Fund and National Pension Scheme contributions, which is a defined contribution plan, for qualifying employees. Additionally, the Company also provides, for covered employees, health insurance through the Employee State Insurance scheme. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The contributions payable to these plans by the Company are at rates specified in the rules of the Schemes.

The Company has a defined benefit gratuity plan in India ("the plan"), governed by the Payment of Gratuity Act, 1972. The plan entitles an employee, who has rendered at least five years of continuous service, to gratuity at the rate of fifteen days wages for every completed year of service or part thereof in excess of six months, based on the rate of wages last drawn by the employee concerned. The defined benefit plan for gratuity is administered by a single gratuity fund (Life Insurance Corporation of India) that is legally separate from the Company.

A. Funding

The Plan is fully funded by the Company with Life Insurance Corporation of India. The funding requirements are based on the gratuity fund's actuarial measurement framework set out in the funding policies of the plan. The funding of the plan is based on a separate actuarial valuation for funding purposes for which the assumptions have been set out in (E). Employees do not contribute to the plan.

The Company expects to pay INR 2,267.01 in contributions to its defined benefit plans in FY 2025-26.

B. Measurement of fair values Fair value hierarchy

Level I - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level II - Inputs other than quoted prices included within Level I that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e.derived from prices).

Level III - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

Note: a) In above table, the Company has disclosed the fair value of each class of financial assets and financial liabilities in a way that permits the information to be compared with the carrying amounts. In addition, it has reconciled the assets and liabilities to the different categories of financial instruments as defined in Ind AS 109.

b) The Company has not disclosed fair values of financial instruments such as trade receivables, loans, cash and cash equivalents, Bank balances other than cash and cash equivalents, other financial assets, trade payables and other financial liabilities, since their carrying amounts are reasonable approximates of fair values.

c) The Company groups financial instruments into classes that are appropriate to the nature of the information disclosed and that take into account the characteristics of those financial instruments. Although Ind AS 107 does not define 'classes', as a minimum instruments measured at amortized cost should be distinguished from instruments measured at fair value.

B. Financial risk management

i. Risk management framework

The Company's business activities are exposed to a variety of financial risks, namely credit risk, liquidity risk and market risk. 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 has established the risk management committee, which is responsible for developing and monitoring the Company's risk management policies. The committee reports regularly to the board of directors on its activities.

The Company's risk management policies are established to identify and analyze the risks 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, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

The Company's audit committee 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 Company's audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the audit committee.

ii. Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company's receivables from customers and loans. The carrying amounts of financial assets and contract assets represent the maximum credit exposure.

Impairment losses on financial assets and contract assets recognized in statement of profit and loss for the year ended 31 March 2025 is Nil (31 March 2024: Nil)

Trade receivables

The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base, including the default risk associated with the industry and country in which customer operate. Details of concentration of revenue are included in Note 36(b).

Credit risk is managed through credit approvals, establishing credit limits and monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. The Company establishes an allowance for doubtful debts that represents its estimate of incurred losses in respect of the Company's trade receivables. The Company does not otherwise require collateral in respect of trade receivables, loans and other financial assets. The Company does not have trade receivables, loans and other financial assets for which no loss allowance is recognized because of collateral.

Exposures to customers outstanding at the end of each reporting period are reviewed by the Company to determine incurred and expected credit losses. Historical trends of impairment of trade receivables do not reflect any significant credit losses. Given that the macro economic indicators affecting customers of the Company have not undergone any substantial change, the Company expects the historical trend of nil credit losses to continue. Further, management believes that the unimpaired amounts that are past due by more than 30 days are still collectible in full, based on historical payment behavior and extensive analysis of customer credit risk. As at 31 March 2025, there are no dues collectible which are aged more than 90 days. Revenue from the top 4 customers of the Company during the year ended 31 March 2025 amounted to INR 421,249 (31 March 2024 - INR 338,916) which is 67% of the Company's total revenue from sale of products.

Cash and bank balances

The Company held cash and cash equivalents and other bank balances of INR 20,764.94 thousands as at 31 March 2025 (31 March 2024: INR 9,232.94 thousands). The cash and cash equivalents and other bank balances are held with the banks. Impairment on cash and cash equivalents and other bank balances has been measured on a 12 month expected loss basis and reflects the short maturities of the exposures. The Company considers that its cash and cash equivalents have low credit risk based on the external credit ratings of the counterparties.

Other financial assets (current and non-current)

Other financial assets comprises fixed deposits, interest accrued on fixed deposits and export incentives receivable. These fixed deposits are held with credit worthy banks and financial institutions. The credit worthiness of such banks and financial institutions is evaluated by the management on an ongoing basis and is considered to be good with low credit risk. Export incentive receivable pertains to duty drawback and rebate income receivable from Customs authorities. The Company does not expect any losses from non-performance by these counter parties.

iii. Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company's objective when managing when managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company's reputation.

The Company uses a costing methodology to cost its products and services, which assist in monitoring the cash flow requirements and optimizing its cash return on investments.

The Company aims to maintain the level of its cash and cash equivalents, other bank balances and other financial assets at an amount in excess of expected cash outflows on financial liabilities (other than trade payables) over the next six months. The ratio of investments to outflows was 336.12 as at 31 March 2025 (31 March 2024: 267.98)

The Company also monitors the level of expected cash inflows on trade receivables together with expected cash outflows on trade payables. As at 31 March 2025, the expected cash inflows from trade receivables are INR 48,751.28 thousands (31 March 2024:INR 37,511.68 thousands) and expected cash outflows from trade payables are INR 29,172.34 thousands (31 March 2024: INR 28,884.23 thousands). This excludes the potential impact of extreme circumstances that cannot reasonably be predicted, such as natural disasters.

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and include contractual interest payments and exclude the impact of netting agreements.

iv. Market risk

Market risk is the risk that changes in market prices - e.g. foreign exchange rates, interest rates and equity prices - will affect the Company's income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables. The Company is exposed to market risk primarily related to the risk of foreign exchange receivables.

The Company does not manage market risks by using derivatives.

Currency risk

The Company is exposed to transactional foreign currency risk to the extent there is a mismatch between the currencies in which sales, purchases, receivables and payables are denominated and the respective functional currencies of the Company. Foreign currency risk arise in USD and other foreign currency denominated transactions mainly from monetary receivables gives rise to exchange rate fluctuation risk.

Sensitivity analysis

A reasonably possible strengthening (weakening) of the INR against USD as at 31 March 2025 would have affected the measurement of financial instruments denominated in a foreign currency and affected equity and profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases.

Supreme Court vide their judgement dated February 28, 2019 clarified that Provident fund deduction is to be made on basic salary and on other salary components which are universally made available to all employees. The Company based on legal opinion believes that there are interpretative challenges and significant uncertainities surrounding the determination of liability including the period of assessment, application for present and past employees, Company's liability towards employees' contribution and assessment of interest and penalties. The amount of obligation, therefore, cannot be measured with sufficient reliability for past periods, and hence, disclosed as contingent liability.

33 Dues to micro and small enterprises - As per Micro, Small and Medium Enterprises Development Act, 2006 (‘MSMED’ Act)

The Ministry of Micro, Small and Medium Enterprises has issued an Office Memorandum dated 26 August 2008 which recommends that the Micro and Small Enterprises should mention in their correspondence with its customers the Entrepreneurs Memorandum Number as allocated after filing of the Memorandum. Based on the information available with the Company, there are no overdues outstanding to micro enterprises and small enterprises as defined under the Micro, Small and Medium Enterprises Development Act, 2006. Further, the Company has not received any claim for interest from any supplier under the said Act. Accordingly the details are given below:

35 Other Statutory Information

a) The Company has not revalued its property, plant and equipment (including the right of use assets) and intangible assets.

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

c) The Company does not have any borrowings from banks and financial institutions on the basis of security of

current assets. Accordingly, it is not required to file any quarterly returns or statements of current assets with banks and financial institutions.

d) The Company has not been declared as a wilful defaulter by any bank or financial institution or other lenders.

e) Compliance with clause (87) of section 2 of the Companies Act, 2013 read with Companies (Restriction on number of Layers) Rules, 2017 with respect to layer of companies are not applicable to the Company.

f) 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.

g) The Company do not have any charges or satisfaction which is yet to be registered with Registrar of companies beyond the statutory period.

h) The Company has not entered into any scheme of arrangement as per sections 230 to 237 of the Companies Act, 2013.

i) The Company has not advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

j) The Company has not received, from any person(s) or entity(ies), including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Parties ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

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

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

m) The Company has a process whereby periodically all long term contracts (including derivative contracts) are assessed for material foreseeable losses. At the year end, the Company has reviewed and there are no long term contracts for which there are any material foreseeable losses.

36 Transfer pricing

The Company has international / domestic transactions with related parties. For the year ended 31 March 2024, the Company has obtained an Accountant's report from a Chartered Accountant in respect of transactions with related parties as required by the relevant provisions of the Income tax act, 1961 and the same has been filed with the tax authorities. For the year ended 31 March 2025, the Company confirms that it has maintained documents as prescribed by the Income-tax Act, 1961 to prove that these transactions are at arm's length and

the aforesaid legislation will not have any impact on the financial statements, particularly on the amount of tax expense and that of provision for taxation.

37 Segment information

a. Basis of segmenting

An operating segment is a component of the entity that engages in business activities from which it may earn revenues and incur expenses (including revenues and expenses relating to transactions with other components of the same entity) for which discrete financial information is available. All operating segments' operating results are reviewed regularly by the Managing Director (MD) to make decisions about resources to be allocated to the segments and assess their performance.

The Company has a single operating segment, namely, carbon rods and services. The operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The Managing Director (MD) of the Company has been identified as the chief operating decision maker who assesses the financial performance and position of the Company, and makes strategic decisions.

b. Geographical information

The geographical information analyses the Company's revenue and non-current assets by the Company's country of incorporation (i.e. India) and other countries. In presenting the geographical information, segment revenue has been based on the geographical location of customers and segment assets which have been based on the geographical location of the assets.

* Non-current assets exclude financial instruments, deferred tax assets and post-employment benefit assets. All property, plant and equipment are located in India.

c. Major customer

Revenue from the top 4 customers of the Company is INR 421,249 (31 March 2024 - INR 338,916) which are more than ten percent each of the Company's total revenue..

38. The Indian Parliament has approved the Code on Social Security, 2020 ('Code') which would impact the contributions made by the Company towards Provident Fund, Gratuity and Leave encashment. The Ministry of Labour and Employment has released the draft rules for the Code on 13 November 2020, and has invited suggestions from stakeholders which are under active consideration by the Ministry. The Company will assess the impact once the subject rules are notified and will give appropriate impact in the financial statements in the period in which the Code becomes effective and the related rules to determine the financial impact are published.

39. Events after the balance sheet date

The Company has evaluated subsequent events from the balance sheet date through 14 May 2025, the date on which the financial statements were authorised by the Board of Directors of the Company and determined that there are no items to disclose.