2.15 Provisions :

Provisions are recognized when the Company has a present obligation (legal or constructive) as a
result of a past event, it is probable that the Company will be required to settle the obligation, and
a reliable estimate can be made of the amount of the obligation.

The amount recognized as a provision is the best estimate of the consideration required to settle the
present obligation at the end of the reporting period, taking into account the risks and uncertainties
surrounding the obligation.

When some or all of the economic benefits required to settle a provision are expected to be recovered
from a third party, a receivable is recognized as an asset if it is virtually certain that reimbursement
will be received and the amount of the receivable can be measured reliably.

2.16 Income Taxes :

Income tax expenses comprise current tax and deferred tax charge or credit.

Current Tax is measured on the basis of estimated taxable income for the current accounting period
in accordance with the applicable tax rates and the provisions of the Income-tax, 1961 and other
applicable tax laws.

Deferred tax is provided, on all temporary differences at the reporting date between the tax bases
of assets and liabilities and their carrying amounts for financial reporting purposes. Deferred tax
assets and liabilities are measured at tax rates that are expected to be applied to the temporary
differences when they reverse, based on the laws that have been enacted or substantively enacted at
the reporting date. Tax relating to items recognized directly in equity or OCI is recognized in equity or
OCI and not in the statement of Profit and Loss. MAT Credits are in the form of unused tax credits that
are carried forward by the Company for a specified period of time, hence it is grouped with deferred
Tax asset.

Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current
tax liabilities and assets, and they relate to income taxes levied by the same tax authority, but they
intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will
be realized simultaneously.

A deferred tax asset is recognized to the extent that it is probable that future taxable profits will be
available against which the temporary difference can be utilized. Deferred tax assets are reviewed at
each reporting date and are reduced to the extent that it is no longer probable.

2.17 Earnings Per Share :

The basic Earnings Per Share (“EPS”) is computed by dividing the net profit / (loss) after tax for
the year attributable to the Equity shareholders, by the weighted average number of equity shares
outstanding during the year.

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

2.18 Critical Accounting Judgements and Key Sources of Estimation Unertainty :

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

2.18.1 Critical judgments in applying accounting policies

In the process of applying the Company’s accounting policies, management has made the following
judgments, which have the most significant effect on the amounts recognized in the financial
statements.

2.18.2 Key assumptions

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

2.18.3 Useful Lives of Property, Plant and Equipment

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

2.18.4 Fair value measurement of financial instruments

Fair value of financial assets and liabilities is normally determined by references to the transaction
price. If the fair value is not reliably determinable, the company determines the fair value using
valuation techniques that are appropriate in the circumtances and for which sufficient data are
available, maximising the use of relevant observable inputs and minimising the use of unobservable
inputs.

2.18.5 Defined benefit plans

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

13.4 Buy Back of Equity Shares:

During the financial year ended 31st March, 2022, the Company had bought back 5,37,685 fully paid-
up equity shares of face value of ' 10 each, constituting up to 6.60% of the issued, subscribed and
paid-up Equity Share Capital of the Company as on March 31, 2021. The Buy Back was undertaken on
a proportionate basis, from the fully paid-up Equity Shareholder(s) / beneficial owner(s) of the Equity
Shares of the Company, by way of a Tender Offer for cash at a price of ' 125/- (Rupees One Hundred
Twenty Five only) per Equity Share for an aggregate amount up to ' 672.11/- excluding transaction
cost(s) and in accordance with the provisions of Companies Act, 2013 and SEBI (Buy-Back of Securities)
Regulations, 2018. The Buy Back offer opened on October 5, 2021 and closed on October 27, 2021. The Buy
Back size was about 9.67% of the aggregate paid-up equity capital and free reserves of the Company as
per the standalone financial statements of the Company for the financial year ended March 31, 2021. The
shares accepted under the Buy Back were extinguished in compliance with the provisions of Regulation
11 of SEBI (Buy-back of Securities) Regulations, 2018 and total issued capital was thus, then reduced
to 91,63,603 equity shares of ' 10/- and the premium on buy-back of ' 618.34/- was adjusted against
Securities Premium Account.

Employee Benefits

The Company has a defined benefit plan Every employee who has completed five year or more of service
gets a gratuity on departure at 15 days salary ( last drawn salary) for each completed year of service. The
scheme is funded with an insurance company in the form of a qualifying insurance policy. The Company
has a defined unfunded obligation for leave encashment. Generally the leave encashment is paid to
employees as and when claimed.

27.1 On November 21, 2025, the Government of India notified provisions of the Code on Wages, 2019, the
Industrial Relations Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health
and Working Conditions Code, 2020 (Labour Codes), which consolidate twenty-nine existing labour laws
into a unified framework governing employee benefits during employment and post-employment.

The Labour Codes, amongst other things, introduce changes including a uniform definition of wages
and enhanced benefits relating to leave. The Company has assessed the financial implications of these
changes, which has resulted in an increase in gratuity & leave liability arising out of past service cost by
' 12.01 lakhs.

The Company continues to monitor developments pertaining to the Labour Codes and will evaluate the
impact, if any, on the measurement of liabilities pertaining to employee benefits.

39 DERIVATIVE INSTRUMENTS

The Company enters into forward contracts to offset foreign currency risks arising from the amounts
denominated in currencies other than the Indian Rupee. The counter party in such forward contracts is a
bank. These contracts are entered to hedge the foreign currency risks on the firm commitments.

Details of forward contracts outstanding as at the year end is as under.

41 RISK MANAGEMENT

41.1 Financial Risk Managements

In the course of its business, the Company is exposed to a number of financial risks: Liquidity Risk, Credit
Risk, Market Risk. This note present the Company’s objective, policies and processes for managing its
financial risk and capital.

41.2 Liquidity Risk

Liquidity Risk refers to risk that the Company may encounter difficulties in meeting its obligations
associated with financial liabilities that are settled in cash or other financial assets. The Company
regularly monitors rolling forcast to ensure that sufficient liquidity is maintained on and ongoing basis
to meet operational needs. The Company manages the liquidity risk by planning the investments in a
manner such that the desired quantam of funds could be made available to meet any of the business
requirments within a resonable period of time. In addition the Company also maintains flexibility in
arranging the funds by mantaining commited credit lines with various banks to meet the obligations.

41.3 Credit Risk

Credit Risk refers to risk of financial loss to the Company if a customer or counter- party fails to meet
its contractual obligations. The Company has following categories of financial assets that are subject to
credit risk evaluation;

41.3.1 Trade Receivables

Credit risk arising from trade receivable is managed in accordance with the Company’s established
policies with regard to credit limits, control and approval procedures..

The Following table gives details in respect of percentage of revenues generated from top five customers.

41.3.2 Other financial assets

Other financial assets include employee loans, security deposits etc. Based on historical experience and
credit profiles of counterparties, the Company does not expect any significant risk of default.

The Company’s maximum exposure to credit risk for each of the above categories of fiancial assets in
their carrying values at the reporting dates.

41.4 Market Risk
41.4.1 Interest Rate Risk

Interest rate risk refers to risk that the fair value of future cash flows of a financial instrument may
fluctuate because of changes in market interest rates. Also, there are no significant borrowings as at the
balance sheet date.

41.4.2 Price Risk

Price Risk refers to risk that the fair value of a financial instrument may fluctuate because of the change
in the market price. The Company is exposed to the price risk mainly from investment in mutual funds
and investment in equity instruments.

41.4.3 Foreign Currency Risk

Foreign currency risk refers to risk that the fair value of future cash flows of an exposure may fluctuate
due to change in the foreign exchange rates. The Company is exposed to foreign currency risk arising
out of transactions in foreign currency. Foreign exchange risk are managed in accordance with the
Company’s established policy for foreign exchange management. The Company enters in to forward
contracts as per the hedging policy to hedge against its foreign currency exposures. The impact of
strengthening / weakening of foreign currencies on the outstanding exposures remaining unhedged at
the year-end is not significant.

42 PAYMENT OF DIVIDEND

42.1 Dividend paid during the year

Dividends paid during the year ended March 31, 2026 include an amount of ' 1.50 per equity share
towards final dividend for the year ended March 31, 2025. Dividends paid during the year ended March
31, 2025 include an amount of ' 1.80 per equity share towards final dividend for the year ended March
31, 2024.

42.2 Dividend

Dividends declared by the Company are based on the profit available for distribution. The Board of
Directors have proposed a final dividend of ' 1.50 (Previous year ' 1.50) per equity share amounting to
' 137.45 Lakhs for the year 2025-26 ( Previous year ' 137.45 Lakhs ) after the balance sheet date,
subject to the approval of shareholders at the ensuing Annual General Meeting of the Company and
therefore, the proposed final dividend has not been recognised as the liability as at the balance sheet
date in line with Ind-AS 10 on ‘Events after the reporting period’.

(b) Fair Value Hierarchy

The fair value hierarchy is based on inputs to valution techniqes that are used to measure fair value that
are either observable or unobservable and consist of the following three levels :

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

Level 2 - Inputs are other than quoted prices included within level 1 that are observable for the asset or
liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices)

Level 3 - Inputs are not based on observable market data (unobservable inputs). Fair value are determined
in whole or in part using a valuation model based on assumption that are neither supported by prices from
observable current market transaction in the same instrument nor are they based on available market
data.

45 CAPITAL COMMITMENT

The estimated amount of contracts remaining to be executed on capital account not provided for as on the
date of the Balance Sheet is ' NIL (P.Y. ' NIL).

46 DETAILS OF BENAMI PROPERTY HELD

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

47 BORROWINGS FROM BANKS FOR CREDIT FACILITY

There is no material or significant deviation in the quarterly returns or statements of current assets filed
by the Company with the banks or financial institutions vis-a-vis the books of accounts for the year. The
deviations, if any, have been intimated by the Company to the banks or financial institutions, wherever
necessary.

48 WILFUL DEFAULTER

The Company is not declared wilful defaulter by any bank or financial institution or other lender during the
year.

49 RELATIONSHIP WITH STRUCK OFF COMPANIES

The Company has not entered into any transactions with the companies struck off under Section 248 of the
Companies Act, 2013 or Section 560 of Companies Act, 1956 during the year.

50 REGISTRATION OF CHARGES OR SATISFACTION WITH REGISTRAR OF COMPANIES (ROC)

During the year, there are no instances of any charges or satisfaction which are pending for registration with
ROC beyond the statutory period.

51 COMPLIANCE WITH NUMBER OF LAYERS OF COMPANIES

The Company is in compliance with the number of layers prescribed under clause (87) of Section 2 of the
Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017.

52 COMPLIANCE WITH APPROVED SCHEME(S) OF ARRANGEMENTS

There is no Scheme of Arrangement approved by the Competent Authority in terms of Sections 230 to 237 of
the Companies Act, 2013 during the year and hence, no disclosures are required to be made by the Company
in the books of account of the Company during the year.

53 UTILISATION OF BORROWED FUNDS AND SHARE PREMIUM RULE 11(E)

No funds (which are material either individually or in the aggregate) have been advanced or loaned or
invested (either from borrowed funds or share premium or any other sources or kind of funds) by the
Company to or in any other person or entity, including foreign entity (“Intermediaries”).

No funds (which are material either individually or in the aggregate) have been received by the Company
from any person or entity, including foreign entity (“Funding Parties”).

54 The Company does not have any transactions not recorded in books of accounts that has been surrendered
or disclosed as income during the year and previous year in the tax assessments under the Income Tax Act,
1961.

55 The Company has not traded or invested in any crypto currency or virtual currency during the year and
previous year.

56 There has been no fraud by the Company or on the Company during the year and previous year.

57 ROUNDING OF AMOUNTS

All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakhs as
per the requirement of Schedule III, unless otherwise stated.

58 Previous year’s figures have been regrouped / reclassified / restated, wherever necessary to correspond with
the current year’s classification / disclosure.