1.9 Provisions and contingent liabilities:

The Company recognizes a provision when there is a present obligation as a result of a past event
that probably requires an outflow of resources and a reliable estimate can be made of the amount of
the obligation. 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. Where there is
a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no
provision or disclosure is made.

Provisions for onerous contracts, i.e. contracts where the expected unavoidable costs of meeting the
obligations under the contract exceed the economic benefits expected to be received under it, are
recognized when it is probable that an outflow of resources embodying economic benefits will be
required to settle a present obligation as a result of an obligating event, based on a reliable estimate of
such obligation.

1.10 Taxes:

Tax expense comprises current and deferred tax. Current income tax is measured at the amount expected
to be paid to the tax authorities in accordance with the Income-Tax Act, 1961 enacted in India. The tax
rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the
reporting date.

Current income tax

Current income tax assets and liabilities are measured at the amount expected to be recovered from
or paid to the taxation authorities. Current income tax relating to items recognized directly in equity
is recognised in equity and not in the statement of profit and loss. Management periodically evaluates
positions taken in the tax returns with respect to situations in which applicable tax regulations are
subject to interpretation and establishes provisions where appropriate.

Minimum alternate tax

During the current year ended March 31, 2026, the company has made the tax provisions based on new
tax regime.

Deferred tax

Deferred tax is provided using the balance sheet approach on temporary differences at the reporting date
between the tax bases of assets and liabilities and their carrying amounts for financial reporting purpose
at reporting date. Deferred income tax assets and liabilities are measured using tax rates and tax laws
that have been enacted or substantively enacted by the balance sheet date and are expected to apply to
taxable income in the years in which those temporary differences are expected to be recovered or settled.
The effect of changes in tax rates on deferred income tax assets and liabilities is recognized as income
or expense in the period that includes the enactment or the substantive enactment date. A deferred
income tax asset is recognized to the extent that it is probable that future taxable profit will be available
against which the deductible temporary differences and tax losses can be utilized. The carrying amount
of deferred tax assets are reviewed at each reporting date and reduced to the extent that it is no longer
probable that sufficient taxable profit will be available to allow all or part of the deferred tax assets to

be utilised. Unrecognised deferred tax assets are reassessed at each reporting date and are recognised
to the extent that it has become probable that future taxable profits will allow deferred tax assets to
be recovered. The Company offsets current tax assets and current tax liabilities, where it has a legally
enforceable right to set off the recognized amounts and where it intends either to settle on a net basis, or
to realize the asset and settle the liability simultaneously

1.11 Earnings Per Share:

The basic earnings per share are computed by dividing the net profit or loss attributable to equity
shareholders for the year by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable
to equity shareholders and the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares

1.12 Employee benefits:

Expenses and liabilities in respect of employee benefits are recorded in accordance with Indian
Accounting Standard (Ind AS)-19 - ‘Employee Benefits’

I. Short Term employee benefits:

Short-term employee benefits in respect of salaries and wages, including non-monetary benefits are
recognised as an expense at the undiscounted amount in the statement of profit and loss for the year in
which the related service is rendered.

II. Retirement benefits:

Retirement benefits comprise of Defined contribution plans (Provident fund, ESI, and Superannuation)
and Defined benefit plan (Gratuity) which are recognized as follows:

A. Defined contribution plan

Retirement benefits in the form of provident fund, pension fund, superannuation fund and ESI are a
defined contribution scheme and the contributions are charged to the statement of profit and loss of the
year when the contributions to the respective funds are due. There are no other obligations other than
the contribution payable to the provident fund/trust.

B. Defined benefit plan

Retirement benefits in the form of gratuity and leave encashment are defined benefit plans. Gratuity is
provided for on the basis of an actuarial valuation on projected unit credit method made at the end of
each financial year. The Company’s liabilities on account of gratuity and earned leaves on retirement
of employees are determined at the end of each financial year on the basis of actuarial valuation
certificates obtained from registered actuary in accordance with the measurement procedure as per
Indian Accounting Standard 19 (Ind AS 19) ‘Employee Benefits’. Gratuity liability is funded on year-
to-year basis by contribution to respective fund. The costs of providing benefits under these plans are
also determined on the basis of actuarial valuation at each year end. Actuarial gains and losses for
defined benefit plans are recognized through OCI in the period in which they occur. Re-measurements
are not reclassified to profit or loss in subsequent periods. Accumulated leave, which is expected to be
utilized within the next 12 months, is treated as short-term employee benefit. The Company measures
the expected cost of such absenteeism as the additional amount that it expects to pay as a result of the
unused entitlement that has accumulated at the reporting date. The Company treats accumulated leave
expected to be carried forward beyond twelve months, as long-term employee benefit for measurement
purposes. Such long term compensated absences are provided for based on actuarial valuation. The
actuarial valuation is done as per projected unit credit method at the year-end.

1.13 Research & Development:

Research & Development expenditure of revenue nature is charged to Statement of Profit & Loss, while
Capital Expenditure is added to the cost of fixed assets in the year in which they are incurred.

1.14 Impairment:

Non-financial assets

Property, plant and equipment, intangible assets and assets classified as investment property with finite
life are evaluated for recoverability whenever there is any indication that their carrying amounts may
not be recoverable. If any such indication exists, the recoverable amount (i.e. higher of the fair value
less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does
not generate cash flows that are largely independent of those from other assets. In such cases, the
recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs.

If the recoverable amount of an asset or CGU is estimated to be less than its carrying amount, the
carrying amount of the asset (or CGU) is reduced to its recoverable amount. An impairment loss is
recognized in the statement of profit or loss.

An impairment loss is reversed in the statement of profit and loss if there has been a change in the
estimates used to determine the recoverable amount. The carrying amount of the asset is increased to its
revised recoverable amount, provided that this amount does not exceed the carrying amount that would
have been determined (net of any accumulated amortization or depreciation) had no impairment loss
been recognized for the asset in prior years.

Impairment losses on continuing operations, including impairment on inventories are recognized in the
statement of profit and loss, except for properties previously revalued with the revaluation taken to other
comprehensive income. For such properties, the impairment is recognized in OCI up to the amount of
any previous revaluation surplus.

Financial assets

The Company applies ‘simplified approach’ measurement and recognition of impairment loss on the
following financial assets and credit risk exposure:

• Financial assets that are debt instrument and are measured at amortized cost e.g. loans, debt
securities, deposits, and bank balance.

• Trade receivables

The application of simplified approach does not require the Company to track changes in credit risk.
Rather, it recognizes impairment loss allowance based on lifetime expected credit loss at each reporting
date, right from its initial recognition.

1.15 FINANCIAL ASSETS

All regular way purchases or sales of financial assets are recognised and derecognised 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 recognised
financial assets are subsequently measured in their entirety at either amortised cost or fair value,
depending on the classification of the financial assets.

Classification of financial asset

Financial assets that meet the following conditions are subsequently measured at amortised cost less
impairment loss (except for investments that are designated as at fair value through profit or loss (FVTPL) 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

• he 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.

Financial assets that meet the following conditions are subsequently measured at fair value through
other comprehensive income (FVTOCI) (except for investments 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 achieved both by collecting
contractual cash flows and selling financial assets; 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.

Financial Liabilities and Equity Instruments
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 recognised at the proceeds
received, net of direct issue costs.

Financial liabilities

All financial liabilities are subsequently measured at amortised 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
derecognition or when the continuing involvement approach applies, financial guarantee contracts issued by
the Company 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 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 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. Financial liabilities at FVTPL are stated at fair value, with any gains or losses
arising on remeasurement recognised in profit or loss.

Derecognition of financial liabilities

The Company derecognises financial liabilities when, and only when, the Company’s obligations are discharged,
cancelled or they expire. The difference between the carrying amount of the financial liability derecognised and
the consideration paid and payable is recognised in profit or loss.

1.16 LEASES

The Company evaluates if an arrangement qualifies to be a lease as per the requirements of Ind AS 116.

Identification of a lease requires significant judgement. The Company uses judgement in assessing whether a
contract (or part of contract) includes a lease, the lease team (including anticipated renewals), the applicable
discount rate, variable lease payments whether are in-substance fixed.

The judgement involves assessment of whether the asset included in the contract is a fully or partly identified
asset based on the facts and circumstances, whether the contract include a lease and non-lease component and if
so, separation thereof for the purpose of recognition and measurement, determination of lease term basis, inter
alia the non-cancellable period of lease and whether the lessee intends to opt for continuing with the use of the
asset upon the expiry thereof, and whether the lease payments are fixed are variable or a combination of both.

The Company, as a lessee, recognises a right-of-use asset and a lease liability for its leasing arrangements, if
the contract conveys the right to control the use of an identified asset.

The contract conveys the right to control the use of an identified asset, if it involves the use of an identified
asset and the Company has substantially all of the economic benefits from use of the asset and has right to
direct the use of the identified asset. The cost of the right-of-use asset shall comprise of the amount of the
initial measurement of the lease liability adjusted for any lease payments made at or before the commencement
date plus any initial direct costs incurred. The right-of-use assets is subsequently measured at cost less any
accumulated depreciation, accumulated impairment losses, if any and adjusted for any remeasurement of the
lease liability. The right-of-use assets is depreciated using the straight-line method from the commencement
date over the shorter of lease term or useful life of right-of-use asset.

The Company measures the lease liability at the present value of the lease payments that are not paid at the
commencement date of the lease. The lease payments are discounted using the interest rate implicit in the
lease, if that rate can be readily determined. If that rate cannot be readily determined, the Company uses
incremental borrowing rate. For short-term and low value leases, the Company recognises the lease payments
as an operating expense on a straight-line basis over the lease term.

The Company, as a lessor, classifies a lease either as an operating lease or a finance lease. Leases are classified
as finance lease 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) Plant and Equipment includes Electrical Installations, Office equipment and Data Processing Equip¬
ments

(ii) Capital Work in Progress for the current year includes Rs.Nil (Previous Year - Rs. Nil) towards the
capitalisation of borrowing cost

(iii) Refer Note 2 of Note 14 (Non-Current Borrowings) stating the details of assets pledged as security.

(iv) The title deeds of all immovable properties disclosed under Property, Plant and Equipment are held in
the name of the Company.

(v) Management has assessed the carrying amount of property, plant and equipment for indicators of im¬
pairment and concluded that no impairment exists as at the reporting date.

a. The Company has irrevocably designated this investment at fair value through other comprehensive
income as it is held for strategic purposes and not for trading. The investment represents membership in an
industry association and is not intended to generate investment returns. Based on management’s assessment,
cost approximates fair value as at the reporting date, and accordingly no independent valuation has been
obtained.

b. The Company has made a capital contribution to S V Solar to enable procurement of power under the captive
consumption model. The contribution does not entitle the Company to participate in profits and has not been
made with the objective of earning investment returns.

c. Refer Note 2.33 for the Company’s fair value measurement policy and fair value hierarchy.

Note 2.6.1 The cost of inventories recognised as an expense during the year was Rs.Nil/- (Previous year:
Rs.Nil/-)

Note 2.6.2 No inventories were written down to net realisable value during the year (Previous Year: Nil).

Note 2.6.3 Inventories as at 31 March 2026 (31 March 2025) are expected to be recovered within twelve
months.

Note 2.6.4 The mode of valuation of inventories has been stated in Note 1.6

Note 2.6.5 Current assets, including inventories, are hypothecated as security against working capital
facilities.

Note 2.7.1 Current assets, including inventories, are hypothecated as security against working capital facilities.
Note 2.7.2 The average credit period on sales of goods is 30 days. No interest is charged on trade receivables.

1. The Company has only one class of shares referred to as equity shares having a par value of Rs.10 each.
Each holder of equity share is entitled to one vote per share.

2. In the event of repayment of Capital of the Company, the distribution will be in the proportion to the
number of equity shares held by the shareholders.

3. Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the
reporting period:

2.12. (ii)

(a) Working capital facilities from The Karnataka Bank Limited are secured by pari passu first charge on the
current assets consisting of stock of raw materials, finished goods, work-in-process, debtors and personal guar¬
antees of directors Sri. G. S. Sridhar and Sri. G.V. Gopinath.

(b) Additional working capital (Term Loan) facilities from The Karnataka Bank Limited sanctioned in the
month of Jan 2022 under GECL Scheme, repayable over a period of 36 months secured by second charge on
the current assets consisting of stock of raw materials, finished goods, work-in-process, debtors and personal
guarantees of directors Sri. G. S Sridhar and Sri G.V. Gopinath. The guarantee is also covered by NCGTC.

Note 2.15.1 Dues to Micro & Small Enterprises

With the promulgation of the Micro, Small and Medium Enterprises Development Act, 2006, the Company
is required to identify Micro, Small and Medium Suppliers and pay them interest on overdue beyond the
specified period irrespective of the terms with the suppliers. The Company has circulated letter to all suppliers
seeking their status. Response from few suppliers has been received and is still awaited from other suppliers.
In view of this, the liability of interest calculated and the required disclosures made, in the below table, to the
extent of information available with the Company.

3. With respect to the Balances of Debtors & Creditors and advances/deposits received from the customers
as per books of account, confirmations of balances are awaited and adjustments if any will be made in
the books on receipt of confirmations and reconciliation.

4. 4.The Company has recorded a Net loss of Rs.8.73 lakhs achieving a turnover of Rs.3020.12 lakhs for
the year ended 31st March 2026 as against Net Profit of 11.58 lakhs achieving a turnover of Rs.2,921.72
lakhs in the previous year ended 31st March 2025. The Company has Retained earnings of Rs.83.85
lakhs at the end of FY 2025-26 as against Rs. 90.39 lakhs at the end of FY 2024-25.

With the improvement in the performance at the latter part of the year, increase in receipt of big orders,
the capability in productivity, the continuous working capital support by the bankers and the promoters,
the Management is confident of generating profits in years to come and meet its financial obligation
as they arise consequently resulting in wiping off the erosion of Net worth soon. The Company is
continuously increasing its clientele and anticipates higher rates of growth which will augur well for
better prospects. Based on the above improving factors, the accompanying Financial Statements have
been prepared on a going concern basis.

5. DUES TO MICRO, SMALL AND MEDIUM ENTERPRISES:

The management is regularly in the process of identifying enterprises which have provided goods and
services to the company which qualify under the definition of micro, small and medium enterprises,
as defined in Micro, Small and Medium Enterprises Act 2001. Accordingly, based on information
available, the amount payable to such enterprises as on 31st March 2026 is Nil. However, there are no
over dues with regards to payments to MSMEs.

6. 6.The computation of profit under section 198 of the Companies Act, 2013 is not considered necessary
as the managerial remuneration that is paid is minimum remuneration based on the effective capital of
the Company as prescribed under Schedule V of the said Act.

8. During the financial year, there are no default in repayment of Loans and Interest in case of Term Loans,
Lease obligations, Demand loans, Public Deposits, and other loans (including loans and advances from
related party)

9. SEGMENTAL REPORTING:

The Company currently engages in manufacturing of PP bags and the same constitutes a single
reportable business segment as per Ind AS 108 and one geographical segment in India. In line with
Indian Accounting Standard 108, as the relevant information is available from the balance sheet and the
statement of profit and loss itself, and therefore keeping in view of the objective of segment reporting,
the Company has not disclosed segment information.

10. INCOME TAXES:

This note provides an analysis of the company’s income tax expense, show amounts that are
recognised directly in equity and how the tax expense is

12. CONTINGENT LIABILITIES:

There are no contingent Liabilities during the year.

13. Secured Loans availed from The Karnataka Bank Limited are secured by a first charge on specific assets
acquired out of the loan and personal guarantees of Sri. G. S. Sridhar and Sri. G.V. Gopinath.

14. (a) Working capital facilities from The Karnataka Bank Limited are secured by a first charge on the cur-

rent assets consisting of stock of raw materials, finished goods, work-in-progress, debtors and personal
guarantees of Sri. G. S. Sridhar and Sri. G.V. Gopinath.

(b) Additional Term loan facilities from The Karnataka Bank Limited sanctioned in the month of Jan 2022
under Overdraft facility, secured by Hypothecation of stocks and book debts and personal guarantees of
directors, Sri. G. S Sridhar and Sri. G.V. Gopinath. The facility obtained under this Scheme shall rank
second charge with the existing facilities availed from the Karnataka Bank.

18. FINANCIAL INSTRUMENTS:

A. Capital risk management

The capital structure of the company consists of debt, cash and cash equivalents and equity attributable to
equity shareholders of the company, which comprises issued share capital and accumulated reserves disclosed
in the Statement of Changes in Equity.

The company’s capital management objective is to achieve an optimal weighted average cost of capital while
continuing to safeguard the company’s ability to meet its liquidity requirements (including its commitments in
respect of capital expenditure) and repay loans as they fall due.

B. Financial Risk Management

a) Market Risk

The company’s activities expose it primarily to the financial risk of changes in interest rates. There have
been no changes to the company’s exposure to market risk or the manner in which it manages and mea¬
sures the risk in the recent past.

i) Currency risk

The company’s exposure arises mainly on import (of raw material and capital items). Management uses certain
derivative instruments to manage its exposure to the foreign currency risk. Foreign currency transactions are
managed within approved policy parameters.

ii) Interest rate risk

The company is exposed to interest rate risk as the company borrows funds at both fixed and floating interest
rates. The risk is managed by the company by maintaining an appropriate mix between fixed and floating rate
borrowings.

b) Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial
loss to the Company. The Company has adopted a policy of only dealing with creditworthy counterparties
and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from
defaults. The Company manages credit risk by undertaking credit evaluations of customers, monitoring ageing
of receivables, and periodically reviewing expected credit losses based on historical default experience and
forward-looking information.

c) Liquidity Risk

The company manages liquidity risk by maintaining adequate reserves and banking facilities, by continuously
monitoring forecast and actual cash flows and by matching the maturity profiles of financial assets and liabil¬
ities for the company. The company has established an appropriate liquidity risk management framework for
it’s short term, medium term and long term funding requirements.

ii. Fair value of financial assets / liabilities (other than investment in subsidiaries) that are not mea¬
sured at fair value

The management considers that the carrying amount of financial assets and financial liabilities rec¬
ognised at amortised cost in the balance sheet approximates their fair value.

Level 1 - Quoted price in an active market.

Level 2 - Discounted cash flow. Future cash flows are estimated based on forward exchange rates and
contract rates, discounted at a rate that reflects the credit risk of various counterparties.

Level 3 - Strategic equity investments. No significant unobservable inputs changed during the year.

19. CAPACITY AND PRODUCTION DURING THE YEAR 2025-26:
a. Product: Polymer Product:

Licensed Capacity: Not applicable
Installed Capacity: 3800 tons.

Production: 2381.72 tons

20. ADDITIONAL REGULATORY INFORMATION:

(i) The title deeds of all the immovable properties (other than properties where the Company is the lessee,
and the lease agreements are duly executed in favour of the lessee) are held in the name of the Compa¬
ny.

(ii) The Company has not revalued its Property, Plant and Equipment (including Right of use assets) or
intangible assets during the year.

(iii) No proceedings have been initiated during the year or are pending against the Company as of March
31, 2026, for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (as
amended in 2016) and rules made thereunder.

(iv) Quarterly statements of current assets filed with banks and financial institutions for fund borrowed from
those banks and financial institutions based on security of current assets are in agreement with the books
of account.

(v) The Company does not have any transactions and / or balance outstanding with companies struck off
under section 248 of the Companies Act, 2013.

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

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

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

(ix) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), includ¬
ing 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
111

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

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

(xi) 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 In¬
come Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act,
1961

(xii) The company does not have any investments through more than two layers of investment companies as
per section 2(87) (cd) and section 186 of Companies Act, 2013.

(xiii) The company does not have any investments through more than two layers of investment companies as
per section 2(87) (cd) and section 186 of Companies Act, 2013.

(xiv) During the financial year, there are no default in repayment of Loans and Interest in case of Term Loans,
Lease obligations, Demand loans, Public Deposits and other loans (including loans and advances from
related party).

22. Previous year figures have been regrouped and reclassified wherever considered necessary to conform
to this year’s classifications.

23. Approval of Financial Statements

The financial statements were approved for issue by the board of directors on May 15, 2026
Signatories to Notes 1 to 23