2.8 Provisions and contingent liabilities
Provisions

A provision is recognized when the Company has a present obligation (legal or constructive) as a result of past event, it is
probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation. These estimates are reviewed at each reporting date and adjusted to
reflect the current best estimates.

If the effect of time value of money is material, provisions are discounted using a current pre - tax rate that reflects, when
appropriate, the risks specific to the liability. When discounting is use, the increase in the provision due to the passage of time is
recognised as a finance cost.

Contingent liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence
or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not
recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability
also arises in extremely rare cases, where there is a liability that cannot be recognized because it cannot be measured reliably.
the Company does not recognize a contingent liability but discloses its existence in the standalone financial statements unless
the probability of outflow of resources is remote.

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

2.9 Taxes

Income tax expenses comprise current tax expenses and the net change in the deferred tax asset or liabilities during the year.

Direct Tax

(a) Current tax

i) Current income tax, assets and liabilities are measured at the amount expected to be recovered from or paid to
the taxation authorities in accordance with the Income Tax Act, 1961. The tax rates and tax laws used to compute
the amount are those that are enacted or substantively enacted, at the reporting date in India as per Income
Computation and Disclosure Standards (ICDS) where the Company operates and generates taxable income.

ii) Current income tax relating to item recognized outside the statement of profit and loss is recognized outside
profit or loss (either in other comprehensive income or equity).Current tax items are recognized in correlation to
the underlying transactions either in statement of profit and loss or directly in equity. 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.

(b) Deferred tax

Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and
liabilities and their carrying amounts for financial reporting purposes at the reporting date.

Deferred tax assets and liabilities are recognized for all deductible temporary differences, the carry forward of unused
tax credits and any unused tax losses. Deferred tax assets are recognized to the extent that it is probable that taxable
profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits
and unused tax losses can be utilized, except:

(a) When the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an
asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither
the accounting profit nor taxable profit or loss.

(b) In respect of deductible temporary differences associated with investments in subsidiaries, deferred tax assets are
recognised only to the extent that it is probable that the temporary differences will reverse in the foreseeable future
and taxable profit will be available against which the temporary differences can be utilised.

The carrying amount of deferred tax assets is 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 asset to be utilized.
Unrecognized deferred tax assets are re-assessed at each reporting date and are recognized to the extent that it has
become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is
realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at
the reporting date.

Deferred tax relating to items recognized outside the statement of profit and loss is recognized outside the statement
of profit and loss (either in other comprehensive income or in equity). Deferred tax items are recognized in correlation
to the underlying transaction either in OCI or direct in equity.

Deferred Tax includes Minimum Alternate Tax (MAT) recognizes MAT credit available as an asset only to the extent that
there is convincing evidence that the Company will pay normal income tax during the specified period, i.e. the period
for which MAT credit is allowed to be carried forward. The Company reviews the "MAT credit entitlement" asset at each
reporting date and writes down the asset to the extent the Company does not have convincing evidence that it will pay
normal tax during the specified period.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax
assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation
authority.

2.10 Revenue from contracts with customers

The company derives its revenue from sale of manufactured goods i.e. crumb rubber, crumb rubber modifier (crm), crumb
rubber modified bitumen (crmb), polymer modified bitumen (pmb), bitumen emulsion, reclaimed rubber/ ultrafine crumb
rubber compound, cut wire shots etc. primarily manufactured from waste tyres/end of life tyres (elt) and traded goods. the
products are primarily used for making/ repair of road, tyres and auto part industry. The company disaggregates the revenue
based on nature of products.

The Company assesses its revenue arrangements against specific criteria in order to determine if it is acting as principal or
agent, the Company has concluded that it is acting as a principal in all of its revenue arrangements, since it is the primary
obligor in all the revenue arrangements as it has pricing latitude and is also exposed to inventory and credit risks. The specific
recognition criteria described below must also be met before revenue is recognised.

(a) Sale of goods

Revenue from sale of goods is recognised when control of the products being sold is transferred to our customer
and when there are no longer any unfulfilled obligations. The Performance Obligations in our contracts are
fulfilled at the time of dispatch, delivery or upon formal customer acceptance depending on customer terms.
Revenue is measured on the basis of contracted price, after deduction of any trade discounts, volume rebates and any taxes
or duties collected on behalf of the Government such as goods and services tax, etc. Accumulated experience is used to
estimate the provision for such discounts and rebates. Revenue is only recognised to the extent that it is highly probable
a significant reversal will not occur.

(b) Rendering of services

Revenue from service related activities is recognised as and when services are rendered and on the basis of contractual
terms with the parties.

(c) Rental income

Rental income arising from operating leases on investment properties is accounted for on a straight- line basis over the
lease terms and is included in other income in the statement of profit or loss due to its non-operating nature.

(d) Interest income

For all debt instruments measured either at amortised cost or at fair value through other comprehensive income, interest
income is recorded using the effective interest rate (EIR). EIR is the rate that exactly discounts the estimated future cash
payments or receipts over the expected life of the financial instrument or a shorter period, where appropriate, to the gross
carrying amount of the financial asset or to the amortised cost of a financial liability. When calculating the effective interest
rate, the Company estimates the expected cash flows by considering all the contractual terms of the financial instrument
(for example, prepayment, extension, call and similar options) but does not consider the expected credit losses. Interest
income is included in other income in the statement of profit and loss.

(e) Dividend from investment in shares

Dividend Income is recognized when the right to receive the payment is established which is generally when shareholders
approve the dividend.

(f) Claims

Claims are recognised when there exists reasonable certainty with regard to the amounts to be realised and the ultimate
collection thereof.

g) Sale of Extended Producer Responsibility (EPR) Credits

EPR Credits are recognised when there is reasonable certainty that the Company will comply with conditions stipulated as
per Regulatory requirements and amount will be received. The revenue related to EPR Credits are shown under the head
revenue from operations.

2.11 Retirement and other employee benefits

Short-term employee benefits and defined contribution plans

All employee benefits payable/ available within twelve months of rendering the services are classified as short-term employee
benefits. Benefits such as salaries, wages and bonus etc. are recognised in the Statement of Profit and Loss in the period in
which the employee renders the related services.

Provident fund

Retirement benefit in the form of provident fund is a defined contribution scheme. The Company has no obligation, other than
the contribution payable to the provident fund. The Company recognizes contribution payable to the provident fund scheme as
an expense, when an employee renders the related services. If the contribution payable to scheme for service received before
the balance sheet date exceeds the contribution already paid, the deficit payable to the scheme is recognized as a liability after
deducting the contribution already paid. If the contribution already paid exceeds the contribution due for services received
before the balance sheet date, then excesses recognized as an asset to the extent that the prepayment will lead to , for example,
a reduction in future payment or a cash refund.

Gratuity (unfunded)

Gratuity is a defined benefit scheme. The cost of providing benefits under the defined benefit plan is determined using the
projected unit credit method.

The Company recognises termination benefit as a liability and an expense when the Company has present obligation as a result
of past events, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation
and a reliable estimate can be made of the amount of the obligation. If the termination benefits fall due more than 12 months
after the balance sheet date, they are measured at present value of future cash flows using the discount rate determined by
reference to market yields at the balance sheet date on governments bonds.

Re-measurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net
interest on the net defined benefit liability and the return on the planned assets (excluding amounts included in net interest
on the net defined benefit liability), are recognised immediately in the balance sheet with a corresponding debit or credit to
retained earnings through OCI in the period in which they occur. Re-measurements are not reclassified to profit or loss in
subsequent periods.

Past service costs are recognised in profit or loss on the earlier of :

(a) The date of the plan amendment or curtailment, and

(b) The date that the Company recognises related restructuring cost

Net interest is calculated by applying the discount rate to the net defined benefit liability or asset.

The Company recognises the following changes in the net defined benefit obligation as an expense in the Statement of Profit and
Loss:

(a) Service costs comprising current service costs, past service costs, gains and losses on curtailments and

(b) Net interest expenses or income
Compensated absences

Accumulated leave, which is expected to be utilised within next 12 months, is treated as short term employee benefit. The
Company measures the expected cost of such absences 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 12 months, as long-term employee benefit for
measurement purposes. Such long-term compensated absences are provided for based on the actuarial valuation using the
projected unit credit method at the period end. Re-measurement, comprising of actuarial gains and losses, are immediately
taken to the Statement of Profit and Loss and are not deferred. The Company presents the leave as a current liability in the
balance sheet to the extent it does not have an unconditional right to defer its settlement for 12 months after the reporting date.
Where Company has the unconditional legal and contractual right to defer the settlement for a period beyond 12 months, the
same is presented as non-current liability.

2.12 Borrowing costs

Borrowing cost includes interest and other costs incurred in connection with the borrowing of funds and charged to statement
of profit and loss on the basis of EIR method. Borrowing cost also includes exchange differences to the extent regarded as an
adjustment to the borrowing cost.

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a
substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the respective asset. All
other borrowing costs are recognised as expense in the period in which they occur.

2.13 Government grants

Government Grants are recognized at their fair value when there is reasonable assurance that the grant will be received and all
the attached conditions will be complied with.

When the grant relates to an expense item, it is recognized as income on a systematic basis over the periods that the related
costs, for which it is intended to compensate, are expensed. When the grant relates to an asset, it is recognized as income in
equal amounts over the expected useful life of the related asset.

When the Company receives grants of non-monetary assets, the asset and grant are recorded at fair value amounts and released
to profit or loss over the expected useful life in a pattern of consumption of the benefit of the underlying asset.

2.14 Earnings per share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by
the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares
outstanding during the period is adjusted for events such as bonus issue, bonus element in a rights issue, share split, and reverse
share split (consolidation of shares) that have changed the number of equity shares outstanding, without a corresponding
change in resources.

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

2.15 Impairment of non- financial assets

The Company assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any indication
exists, or when annual impairment testing for an asset is required, the Company estimates the asset's recoverable amount. An
asset's recoverable amount is the higher of an asset’s or Cash-Generating Unit's (CGU) fair value less costs of disposal and its
value in use. Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that
are largely independent of those from other assets or Company's of assets. Where the carrying amount of an asset or CGU
exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate
that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value
less costs of disposal, recent market transactions are taken into account, if available. If no such transactions can be identified,
an appropriate valuation model is used. These calculations are corroborated by valuation multiples , quoted share prices for
publicly traded companies or other available fair value indicators.

Impairment losses including impairment on inventories, are recognized in the statement of profit and loss. After impairment,
depreciation is provided on the revised carrying amount of the asset over its remaining useful life.

Non-financial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at
the end of each reporting period.

An assessment is made at each reporting date to determine whether there is an indication that previously recognised
impairment losses no longer exist or have decreased. If such indication exists, the Company estimates the asset's or CGU's
recoverable amount. A previously recognised impairment loss is reversed only if there has been a change in the assumptions
used to determine the asset's recoverable amount since the last impairment loss was recognised. The reversal is limited so
that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have
been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years. Such reversal is
recognised in the statement of profit and loss.

2.16 Segment accounting:

Based on "Management Approach" as defined in Ind AS 108- Operating Segments, the executive Management Committee
evaluates the Company's performance and allocates the resources based on an analysis of various performance indicators by
business segments.

The Company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting
the standalone financial statements of the Company as a whole.

2.17 Foreign currencies

The Company's standalone financial statements are presented in Indian Rupee (INR) and Rounded off nearest to lakhs. Which is
also the Company's functional and presentation currency. Items included in the standalone financial statements are measured
using the currency of the primary economic environment in which the entity operates ( 'the functional currency').

Foreign currency transactions are recorded on initial on initial recognition in the functional currency, using the exchange rate
prevailing at the date of transaction.

Measurement of foreign currency items at the balance sheet date

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates
at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using
the exchange rates at the date when the fair value is determined. The gain or loss arising on translation of non- monetary items
measured at fair value is treated in line with the recognition of the gain or loss on the change in fair value of the item (i.e.,
translation differences on items whose fair value gain or loss is recognized in OCI or profit or loss are also recognized in OCI or
profit or loss, respectively).

Exchange differences

Exchange differences arising on settlement or translation of monetary items are recognized as income or expense in the
statement of profit and loss in the period in which they arise.

Bank guarantee and letter of credit

Bank guarantee and letter of credits are recognised at the point of negotiation with Banks and converted at the rates prevailing
on the date of Negotiation. However, outstanding at the period end are recognised at the rate prevailing as on that date and total
sum is considered as contingent liability.

2.18 Dividend distributions

The Company recognizes a liability to make payment of dividend to owners of equity when the distribution is authorized and is
no longer at the discretion of the Company and is declared by the shareholders . A corresponding amount is recognized directly
in equity.

2.19 Fair value measurement

The Company measures financial instruments at fair value at each balance sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to
sell the asset or transfer the liability takes place either:

(i) In the principal market for asset or liability, or

(ii) In the absence of a principal market, in the most advantageous market for the asset or liability.

The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or liability is measured using the assumptions that market participants would use when pricing
the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non- financial asset takes into account a market participant's ability to generate economic
benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset
in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are
available to measure fair value, maximising the use of relevant observable inputs and minimizing the use of unobservable
inputs.

All assets and liabilities for which fair value is measured or disclosed in the standalone financial statements are categorized
within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value
measurement as a whole:

Level 1 - Quoted(unadjusted) market prices in active markets for identical assets or liabilities

Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly
or indirectly observable

Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is
unobservable

For assets and liabilities that are recognized in the standalone financial statements on a recurring basis, the Company
determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization ( based on the
lowest level input that is significant to fair value measurement as a whole ) at the end of each reporting period.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the
nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

2.20 Leases

The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right
to control the use of an identified asset for a period of time in exchange for consideration.

The Company as a lessee

The Company applies a single recognition and measurement approach for all leases, except for short-term leases and leases
of low-value assets. The Company recognises lease liabilities to make lease payments and right-of-use assets representing the
right to use the underlying assets.

(a) Right-of-use assets

The Company recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is
available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and
adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities
recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease
incentives received. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the
estimated useful lives of the building (i.e. 30 and 60 years)

If ownership of the leased asset transfers to the Company at the end of the lease term or the cost reflects the exercise of
a purchase option, depreciation is calculated using the estimated useful life of the asset. The right-of-use assets are also
subject to impairment. Refer to the accounting policies in section 'Impairment of non-financial assets'.

(b) Lease liabilities

At the commencement date of the lease, the Company recognises lease liabilities measured at the present value of lease

payments to be made over the lease term. The lease payments include fixed payments (including in substance fixed
payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts
expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase
option reasonably certain to be exercised by the Company and payments of penalties for terminating the lease, if the lease
term reflects the Company exercising the option to terminate. Variable lease payments that do not depend on an index or
a rate are recognised as expenses (unless they are incurred to produce inventories) in the period in which the event or
condition that triggers the payment occurs.

In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the lease
commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement
date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments
made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease
term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index or rate used to
determine such lease payments) or a change in the assessment of an option to purchase the underlying asset.

(c ) Short-term leases and leases of low-value assets

The Company applies the short-term lease recognition exemption to its short-term leases (i.e., those leases that have a
lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the
lease of low-value assets recognition exemption to leases that are considered to be low value. Lease payments on short¬
term leases and leases of low-value assets are recognised as expense on a straight-line basis over the lease term.

The Company as a lessor

Leases for which the Company is a lessor is classified as finance or operating lease. Leases in which the Company does not
transfer substantially all the risks and rewards incidental to ownership of an asset are classified as operating leases. Rental
income arising is accounted for on a straight-line basis over the lease terms. Initial direct costs incurred in negotiating
and arranging an operating lease are added to the carrying amount of the leased asset and recognised over the lease
term on the same basis as rental income. Contingent rents are recognised as revenue in the period in which they are
earned.

2.21 Significant accounting judgements, estimates and assumptions

The preparation of the Company's standalone 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 the asset or liability affected in future periods.

Judgments

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 standalone financial statements.

(a) Operating lease commitments — Company as lessee

The Company has taken various commercial properties on leases. The Company has determined, based on an evaluation
of the terms and conditions of the arrangements, such as the lease term not constituting a substantial portion of the
economic life of the commercial property, and that it does not retain all the significant risks and rewards of ownership of
these properties and accounts for the contracts as operating leases.

(b) Assessment of lease contracts

Significant judgment is required to apply lease accounting rules under Appendix C to IND AS 116 : determining whether an
Arrangement contains a Lease. In assessing the applicability to arrangements entered into by the Company, management
has exercised judgment to evaluate the right to use the underlying assets, substance of the transaction including
legally enforced arrangements and other significant terms and conditions of the arrangement to conclude whether the
arrangements meet the criteria under Appendix C to IND AS 116.

Estimates and 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 amounts of assets and liabilities within the next financial year,
are described below. The Company based its assumptions and estimates on parameters available when the standalone financial
statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to
market changes or circumstances arising beyond the control of the Company. Such changes are reflected in the assumptions
when they occur.

a) Revenue from contracts with customers

The Company applied the following judgements that significantly affect the determination of the amount and timing of
revenue from contracts with customers:

Determining method to estimate variable consideration and assessing the constraint

In estimating the variable consideration, the Company is required to use either the expected value method or the most
likely amount method based on which method better predicts the amount of consideration to which it will be entitled.
The Company determined that the expected value method is the appropriate method to use in estimating the variable
consideration for revenue from operation, given the large number of customer contracts that have similar characteristics.
Before including any amount of variable consideration in the transaction price, the Company considers whether the
amount of variable consideration is constrained. The Company determined that the estimates of variable consideration
are not constrained based on its historical experience, business forecast and the current economic conditions. In addition,
the uncertainty on the variable consideration will be resolved within a short time frame.

(b) Taxes

Uncertainties exist with respect to the interpretation of complex tax regulations, changes in tax laws, and the amount and
timing of future taxable income. Given the wide range of business relationships and the long-term nature and complexity
of existing contractual agreements, differences arising between the actual results and the assumptions made, or future
changes to such assumptions, could necessitate future adjustments to tax income and expense already recorded. The
Company establishes provisions, based on reasonable estimates. The amount of such provisions is based on various
factors, such as experience of previous tax audits and differing interpretations of tax regulations by the taxable entity and
the responsible tax authority. Such differences of interpretation may arise on a wide variety of issues depending on the
conditions prevailing in the respective domicile of the companies.

Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be available
against which the losses can be utilised. Significant management judgement is required to determine the amount of
deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits together
with future tax planning strategies.

(c) Defined benefit plans

The cost of defined benefit plans (i.e. Gratuity benefit) and the present value of the gratuity obligation are determined
using actuarial valuations. An actuarial valuation involves making various assumptions which 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 the 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.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate for the plans
operated in India, management considers the interest rates of long term government bonds with extrapolated maturity
corresponding to the expected duration of the defined benefit obligation.

The mortality rate is based on publicly available mortality tables for the specific countries. Those morality tables tend to
change only at interval in response to demographic changes. Future salary increases and pension increases are based on
expected future inflation rates for the respective countries.

Further details about the assumptions used, including a sensitivity analysis, are given in note no. 33(6).

(d) Fair value measurement of financial instrument

When the fair value of financial assets and financial liabilities recorded in the balance sheet cannot be measured based
on quoted prices in active markets, their fair value is measured using valuation techniques including the Discounted Cash
Flow (DCF) model. The inputs to these models are taken from observable markets where possible, but where this is not
feasible, a degree of judgment is required in establishing fair values. Judgments include considerations of inputs such as
liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of
financial instruments. See note no. 33(18) for further disclosures.

(e) Impairment of financial assets

The impairment provisions of financial assets are based on assumptions about risk of default and expected loss rates.
the Company uses judgment in making these assumptions and selecting the inputs to the impairment calculation, based
on Company's past history ,existing market conditions as well as forward looking estimates at the end of each reporting
period.

(f) Impairment of non-financial assets

The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication
exists, or when annual impairment testing for an asset is required, the Company estimates the asset’s recoverable amount.
An assets recoverable amount is the higher of an asset's CGU'S fair value less cost of disposal and its value in use. It is
determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those
from other assets or Company's of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount,
the asset is considered impaired and is written down to its recoverable amount.

In assessing value in use , the estimated future cash flows are discounted to their present value using a pre-tax discount
rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining
fair value less costs of disposal, recent market transactions are taken into account. If no such transactions can be identified,
an appropriate valuation model is used. These calculations are corroborated by valuation multiples, or other fair value
indicators.

(g) Impairment of Goodwill

Determining whether goodwill is impaired requires an estimation of value in use of the cash generating units to which
goodwill has been allocated. The value in use calculation requires the direction to estimate the future cash flows expected
to arise from the cash-generating unit and a substable discount rate in order to calculate present value. Where the actual
future cash flows are less than expected, a material impairment loss may arise.

(h) Expected Credit Loss

The Company has used a practical expedient by computing the expected credit loss allowances for trade receivables based
on a provision matrix takes it accounts historical credit loss experience and adjusted for forward looking information. The
expected credit loss allowance is based on the ageing of the day of the receivables are due and the rates are given in the
provision matrix.

(i) Share-based payments

Estimating fair value for share-based payment transactions requires determination of the most appropriate valuation
model, which is dependent on the terms and conditions of the grant. This estimation requires determination of the most
appropriate inputs to the valuation model including the expected life of the share option, volatility and dividend yield and
making assumptions about them. The Black Scholes valuation model has been used by the Management for share based
payment transactions.

2.22 Share-based payments

Employees of the Company and its subsidiaries also receive remuneration in the form of stock options (ESOP) and stock
appreciation rights (SAR) as share based payment transactions under the Company's Employee Stock Option Plan and Employee
Stock Benefit Scheme. Both of these are equity settled sharebased payment transactions.

The cost of equity settled transactions is determined based on the fair value at the date when the grant is made using an
ppropriate valuation model.

That cost is recognised, together with a corresponding increase in share-based payment reserves (SBP) in equity, over the
period in which the performance and/ or service conditions are fulfilled in employee benefits expense. The cumulative expense
recognised for equity settled transaction at each reporting date until the vesting date reflects the extent to which the vesting
period has expired and the Company’s best estimate of the number of equity instruments that will ultimately vest. The statement
of profit and loss expense or credit for a period represents the movement in cumulative expense recognised as at the beginning
and end of that period and is recognised in employee benefits expense.

Service and non-market performance conditions are not taken into account when determining the grant date fair value of
awards, but the likelihood of the conditions being met is assessed as part of the Company's best estimate of the number of
equity instruments that will ultimately vest. Market performance conditions are reflected within the grant date fair value.
Any other conditions attached to an award, but without an associated service requirement, are considered to be non-vesting
conditions. Non-vesting conditions are reflected in the fair value of an award and lead to an immediate expensing of an award
unless there are also service and/or performance conditions.

No expense is recognised for awards that do not ultimately vest because non-market performance and/or service conditions
have not been met. Where awards include a market or non-vesting condition, the transactions are treated as vested irrespective
of whether the market or non-vesting condition is satisfied, provided that all other performance and/or service conditions are
satisfied.

When the terms of an equity-settled award are modified, the minimum expense recognised is the expense had the terms not
been modified, if the original terms of the award are met. An additional expense is recognised for any modification that increases
the total fair value of the sharebased payment transaction, or is otherwise beneficial to the employee as measured at the date of
modification. Where an award is cancelled by the entity or by the counterparty, any remaining element of the fair value of the
award is expensed immediately through profit or loss.

The dilutive effect of outstanding options is reflected as additional share dilution in the computation of diluted earnings per
share.

2.23 Recent accounting pronouncements and changes in accounting standards

Recently issued accounting pronouncements As on March 31, 2025, there are no new standards or amendments to the existing
standards applicable to the Company which has been notified by Ministry of Corporate Affairs.

(f) Nature and purpose of reserves
Securities premium

The amount received in excess of face value of the equity shares is recognised in securities premium. In case of equity
settled share based payment transactions, the difference between fair value on grant date and nominal value of share
is accounted as securities premium reserve. The reserve can be utilised only for limited purposes such as issuance of
bonus shares in accordance with the provisions of the Companies Act, 2013.

General reserve

The general reserve is used from time to time to transfer profits from 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 general reserve will not be reclassified subsequently to profit and loss.

Retained earnings

Retained earnings are profit the Company has earned till date less transfer to general reserve, dividend or other
distribution or transaction with shareholders.

Equity instruments through other comprehensive income

The said portion of equity represents excess/(deficit) of investment valued at fair value through other comprehensive
income in accordance with Ind AS 109 "Financial Instruments" as specified under section 133 of the Act, read with
Rule as amended and the Companies (Indian Accounting Standards) Rules, 2015.

Share based payment reserve

The employee share based payment reserve is used to recognise the compensation related to share based awards
issued to employees under Company's share based payment scheme.

Notes:

A) Guaranteed Emergency Credit Line- GECL-2.0 - Canara Bank

(a) Working capital term loan from Canara Bank under GECL 2.0 scheme and is taken for a sum of Rs. 630 lakh
at an interest rate of 9.25% p.a , to build up current aseets and to meet operational liabilities, make statutory
payments and meet liquidity mismatch arising out of COVID 19 outbreak in the business.

(b) (i) Primary security

The assets created out of the facility so extended i.e. pari-passu 1st charge on the entire current
assets of the Company.

(ii) Collateral securities

The additional WCTL sanctioned under GECL 2.0 scheme shall rank second charge with the existing
credit facilities with charge on the assets financed under the scheme to be created on or before June
30, 2021or date of NPA, whichever is earlier.

(iii) Terms of repayment are as under:-

The balance outstanding as on March 31, 2025 Rs. 170.56 lakh is payable in 13 monthly instalments of
Rs. 13.12 lakh (plus interest) each, last installment falling due on April 08, 2026.

(c) There are no defaults of repayments of principal and interest during the year.

B) GECL-2.0 (Extension)- Canara Bank

(a) Working capital term loan (WCTL) from Canara Bank under GECL 2.0 (extension) scheme is taken for a sum
of Rs. 315 lakh at an interest rate of 9.25% p.a. , to build up current assets and to meet operational liabilities.

(b) The said loan is secured by way of the assets created out of the credit facility so extended. The additional
WCTL facility granted under GECL 1.0 (extension)/GECL 2.0(Extension)/GECL 3.0 (Extension) shall rank
second charge with the existing credit facilities.

(c) Terms of repayment are as under:-

The balance outstanding as on March 31,2025 Rs. 209.92 Lakhs is payable in 32 monthly instalments of Rs.
6.56 lakh plus interest and last installment falling due on 12.11.2027.

(d) There are no defaults of repayments of principal and interest during the year.

C) Term loan from State Bank of India:

I The Company has been sanctioned a term loan from State Bank of India for a sum of Rs. 2545 lakh at an
interest rate of 9.65% p.a. for the purpose of establishement of Varle Plant. The said loan is secured by way
of hypothecation of plant and machinery purchased out of the bank's finance and Exclusive charge by way of
equitable mortgage over factory land & building bearing Survey no. 7 & 71/2 , Varle , Wada , Palgarh.

II Collateral securities

Equitable mortgage over residential building bearing Survey Number : kh no. 448,449,450 & 451, situated
at farm house with commercial conversion built on khasra no. 448, 449, 450 & 451 Chin Min Farm ,Village
Satbari, Chattarpur, Mehrauli New Delhi 110074 measuring total area 13569.23 Sq mtrs in the name of Chin
Min Developers Private Limited.

III Term loan outstanding balance of Rs. 2345 lakhs is to be paid in 57 monthly installments, 2 monthly Installment
having principal amount Rs.20 lakhs plus interest,54 monthly installment having principal amount of Rs. 42
lakhs plus interest & last 57th installment having principal amount of Rs. 37 lakhs plus interest and last
installment falling due on December 20 ,2029.

IV There are no defaults of repayments of principal and interest during the year.

V Personal Guarantee of Mr. Bhupinder Kumar Sekhri & Mr. Gaurav Sekhri (directors of the Company)

D) Term loan from State Bank of India:

I The Company has been sanctioned a term loan from State Bank of India for a sum of Rs. 2250 lakh at an interest
rate of 9.65% p.a. for the purpose of taking over of earlier term loan taken from India Bulls Commercial Credit
Limited (IBCCL). The said loan is secured by way of hypothecation of plant and machinery purchased out of
the bank's finance.

II Collateral securities

Equitable mortgage over residential building bearing survey number: kh no. 448,449,450 & 451, Situated
at farm house with commercial conversion built on khasra no. 448, 449, 450 & 451 Chin Min Farm ,Village
Satbari, Chattarpur, Mehrauli New Delhi 110074 measuring total area 13569.23 Sq mtrs in the name of Chin
Min Developers Private Limited

III Terms of repayment are as under:-

Term loan outstanding balance of Rs. 1450 lakhs is to be paid in 72 installments, in which 71 monthly
installment having principal amount of Rs. 20 lakhs plus interest and last 72nd installment having principal
amount of Rs. 30 lakhs plus interest and last installment falling due on March 25, 2031.

IV There are no defaults of repayments of principal and interest during the year.

V Personal Guarantee of Mr. Bhupinder Kumar Sekhri & Mr. Gaurav Sekhri (directors of the Company)

E) Term loan from State Bank of India:

I The Company has been sanctioned a term loan from State Bank of India for a sum of Rs. 2734 lakh at an
interest rate of 9.65% p.a. for the purpose of establishment of Varle Plant. The said loan is secured by way of
hypothecation of plant and machinery purchased out of the bank's finance and Exclusive charge by way of
equitable mortgage over factory land & building bearing Survey no. 7 & 71/2 , Varle , Wada , Palgarh.

II Collateral securities

Equitable mortgage over residential building bearing Survey Number : kh no. 448,449,450 & 451, Situated
at farm house with commercial conversion built on khasra no. 448, 449, 450 & 451 Chin Min Farm ,Village
Satbari, Chattarpur, Mehrauli, New Delhi - 110074, measuring total area 13569.23 sq. mtrs in the name of
Chin Min Developers Private Limited

III Term loan outstanding balance of Rs. 2542.66 lakhs and Rs.211.03 drawn subsequent to the balance sheet
date is to be paid in 96 monthly installments, after 12 Month moratorium .

IV There are no defaults of repayments of principal and interest during the year.

V Personal Guarantee of Mr. Bhupinder Kumar Sekhri & Mr. Gaurav Sekhri (directors of the company)

F) Others

i) Vehicles and equipment loans are secured against the respective assets and interest is in the range of 7.90%
p.a to 9.55% p.a.

ii) The loans are repayable in range of 23-84 monthly installments and last installment falling due on May 31,
2031.

(iv) The Company is under obligation to export goods within the period of 1.5 years from the date of issue of Advance licenses
issued in terms of Chapter 4 of the Foreign Trade Policy 2015-20. As on date of balance sheet, the Company is under
obligation to export goods worth Rs. 1434.90 lakhs (Crumb Rubber 3457 MT , Reclaim Rubber 2752 MT.) {March 31,2024
Rs. 1390.62 Lakh (1125 MT Crumb Rubber and 3752 MT Reclaimed Rubber)} within the stipulated time as specified in the
respective licenses. Till the year end Company has fulfilled export obligation of Rs.745.54 Lakhs ( Crumb Rubber Powder
203 MT & Reclaim Rubber 1301 MT) { March 31, 2024 Rs.940.25 Lakhs (NIL Crumb Rubber and 2259 MT Reclaimed
Rubber)}.

*It is not possible to predict the outcome of the pending litigations with accuracy, the Company believes, based on legal opinions
received, that it has meritorious defenses to the claims. The management believes the pending actions will not require outflow of
resources and will not have a material adverse effect upon the results of the operations, cash flows or financial condition of the
Company.

33 In the opinion of the Board, current assets have a value on realization in the ordinary course of business at least equal to
the amount at which they are stated.

34 a) The Company had invested a sum of Rs. 643.36 lakhs in BGK Infratech Private Limited ("BGK") (termed as Investee

Company), as per IND AS 109"Financial Instruments" as specified under section 133 of the Act, is to be valued at fair
value through other comprehensive income (FVTOCI). Management has got the same revalued from the Independent
Valuer and fair value as at March 31, 2025 Rs. is Rs. 2560.00 lakhs.

b) The Company received a letter of offer dated April 01, 2025 from BGK for buyback of upto 1,45,000 fully paid-up equity
shares having the face value of Rs. 10/- each ("Equity Share"), at a price of Rs. 400 per Equity Share. The Board of
Directors of Company in its meeting held on April 19, 2025, approved and offered upto 1,45,000 fully paid-up equity
shares held by the Company, for buyback by BGK, subject to compliance of applicable laws in accordance with the letter
of offer.(Refer note - 7.1(a))

35 a) The Company has signed a Joint Venture Agreement ("Shareholders Agreement") dated August 30, 2024 with

Lionshare Holdings (Pty) Ltd ("JV Partner") and Mbodla Investments (Pty) Ltd ("JVC"), Johannesburg, South Africa,
for the purpose of Setting up of plant for recycling of waste tyres / end of life tyres (ELT) and manufacturing and
export of crumb rubber and other allied products, in which the Company will be holding 49%. At the time of entering
Shareholder agreement, paid capital of the JVC is 100 ordinary shares of Rand 1 each and held 100% by the JV
Partner. Subsequent to the JV Agreement, the Company has completed the acquisition of 49% stake in aforesaid JV
and made remittance on February 28, 2025 for Rs. 116.73 Lakhs for 24,50,490 ordinary shares @ Rand 1 each.

b) The Company has invested a sum of Rs. 11.01 lakh in Keerthi International Agro Private Limited towards 11,000
equity shares of Rs.100/- each holding 29% stake in the investee Company. The Company by itself or through
its Directors does not exercise any significant influence or the controls of decision of the investing "Ind AS 28 -
Investments in Associates". Therefore the said investee Company has not been treated as Associates in term of "Ind
AS 28 - Investment in Associate and Joint Venture" in Consolidated Financial Statements (specified under section 133
of Companies Act 2013) read with relevant rules as amended.

c) The Company had invested into 1,24,000 equity shares of Rs.10/- each fully paid up in Puja Infratech Private Limited.
The said Company was converted into Limited Liability Partnership (LLP) under the name of Puja Infratech LLP
having LLP Identification No.: AAL-2641 vide Certificate of Registration on Conversion dated 29th November 2017
issued by Ministry of Corporate Affairs ("MCA"). The share of the Company as a designated partner in the total capital
of the LLP is 12.41% which amounts to a capital contribution of Rs.12.40 lakhs.The Company had invested a sum of
Rs. 37.29 lakhs.

The Company had as per IND AS 109"Financial Instruments" as specified under section 133 of the Act, is to be
valued at fair value through other comprehensive income (FVTOCI). Management has got the same revalued from
the Independent Valuer and fair value as at March 31, 2025 is consistent with that of the previous year March 31,
2024 is Rs. 183.25 lakhs.

d) The Company had set up a plant at Panipat, Haryana on land measuring 34 kanals, 8 marlas. The land was notified as
a part of Industrial area by Haryana State Industrial and Infrastructural Development Corporation Limited (HSIIDC)
in the year 2006-07. In terms of applicable Government laws, the Company filed an objection with the authority and
land measuring 20 kanals and 12 marlas was released by HSIIDC which continues to be in possession of the Company
till date and plant is operating continuously. However, HSIIDC has erroneously served a demand of Rs.373.27 lakhs
for allotment of above land. Special leave partition (SLP) filed by the Comapny before Hon'ble Supreme Court is
not accepted. The Company has filed a representation dated 15.05.2025 to the Principal Secretary , Department of
Industries, Government of Haryana Chandigarh for release of land from acquisition proceeding as Company 's plant
is existing their since year 2001-02 which is much before the Notification dated 16.06.2006 under Land Acquisition
Act. [refer note 3.1 (iv)]

e) The Company had paid under protest, countervailing duty (CVD) of Rs. 356.42 Lakhs (March 31,2024 Rs.356.42 lakh)
on import of old used tyres scrap used for manufacturing of crumb rubber and other products. The Company had
filed a Writ Petition with the Hon'ble High Court of Delhi which was been decided in favor of the Company vide order
of the Hon’ble High Court dated 03.05.2017. Subsequent to the order of the Hon'ble High Court the Company has
availed input tax credit of the CVD amount. The department has filed Special Leave Petition before Hon' ble Supreme
Court of India challenging the order of Hon' ble High Court. Hon’ ble Supreme Court vide order dt. 23.07.2018 has
directed fresh adjudication by Hon' ble High Court of Delhi .The Company has filed early hearing application with
Hon' ble High Court of Delhi and the matter is pending. No provision for the same has been made since the Company
expects no liability on this account.

36 Lease

i) The Company has elected not to apply the requirements of Ind AS 116 on short-term leases (i.e., leases with a lease
term of 12 months or less) in accordance with the recognition exemption provided under the standard. Accordingly,
lease payments associated with these leases are recognized as an expense on a straight-line basis over the lease term.

The total amount recognized in the statement of profit and loss for the year ended March 31, 2025, in respect of
short-term leases amounts to Rs. 100.45 lakhs.(March 31,2024 : Rs. 119.57 lakhs)

ii) The following is the carrying value of lease liability and movement thereof during the year ended March 31, 2025:

j) The average duration of the defined benefit plan obligation at the end of the reporting period is 9 years.(Previous
Year-8 years)

k) The estimates of rate of escalation in salary considered in actuarial valuation are after taking into account inflation,
seniority, promotion and other relevant factors including supply and demand in the employment market. The above
information is as certified by the Actuary.

l) Discount rate is based on the prevailing market yields of Indian Government securities as at the balance sheet date
for the estimated term of the obligations.

m) The sensitivity analysis above have been determined based on a method that extrapolates the impact on defined
benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period.

³⁸ During the year, the Company has capitalized the following expenses of revenue nature to the property ,plant and equipment,
being pre-operative expenses related to projects which has been shown as addittion of expenses under capital work in
progress. Consequently, expenses disclosed under the respective note no.3.2 (a) are net of amounts capitalized by the
Company.

Notes :

i) Debt service = Interest & lease payments principal repayments of long term borrowings

ii) Capital Employed = Tangible Net Worth Total Borrowings Deferred Tax Liability

iii) Tangible Net Worth is Computed as Total Assets - Total Liabilities .

*Borrowings does not includes Lease liabilities

40 The Company has borrowings from banks on the basis of current assets. The Company has complied with the requirement
of filing of quarterly returns/statements of security of current assets with the banks or financial institutions, as applicable,
and these returns were in agreement with the books of accounts .

41 Segment Reporting

Segment information is presented in respect of the Company's key operating segments. The operating segments are based
on the Company’s management and internal reporting structure.

Operating Segments

The Company's Managing Director and CFO has been identified as the Chief Operating Decision Maker ('CODM'), since
Managing Director and CFO are responsible for all major decision w.r.t. the preparation and execution of business plan,
preparation of budget and other key decisions.

Managing director reviews the operating results at the Company level to make decisions about the Company’s performance.
Accordingly, Management has identified the business as single operating segment i.e. "Crumb Rubber, Crumb Rubber
Modifier, Modified Bitumen & Bitumen Emulsion and Allied Products". Accordingly, there is only one Reportable Segment
for the Company i.e. "Crumb Rubber, Crumb Rubber Modifier, Modified Bitumen & Bitumen Emulsion and Allied Products",
hence no specific disclosures have been made.

^a) (i) The transactions with related parties are made on terms equivalent to those that prevail in arm's length

transactions. Outstanding balances at the year-end are unsecured and interest free (other than borrowings
taken by the Company) and settlement occurs in cash.

(ii) For the year ended March 31, 2025, the Company has not recorded any impairment of receivables relating to
amounts owed by related parties. This assessment is undertaken each financial year by examining the financial
position of the related party and the market in which the related party operates.

b) The Company has given a corporate guarantee of Rs. NIL (March 31,2024: Rs.6065 lakh) on behalf of Tinna Trade
Limited ("Subsidiary Company" up to 31.03.2016).

c) All the liabilities for post retirement benefits being 'Gratuity' and 'Leave Encashment are provided on an actuarial
basis for the Company as a whole, the amount pertaining to Key management personnel are not included above.

d) As per the section 149(6) of the Companies Act, 2013, Independent Directors are not considered as "Key Managerial
Personnel", however to comply with the disclosure requirements of Ind AS-24 on "Related party transactions" they
have been disclosed as "Key Managerial personnel".

43 Corporate Social Responsibility

As per Section 135 of the Companies Act, 2013, Company, meeting the applicability threshold, needs to spend at least
2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR)
activities. A CSR committee has been formed by the Company as per the Act. The funds were primarily allocated to a
corpus and utilized through the year on these activities which are specified in ScheduleVII of the Companies Act, 2013:

44 The Company had entered into an agreement on 25.02.2010 with Riveria Builder Private Limited and Viki Housing
Development Private Limited for sale of 89,993 equity shares of Rs.100/- each of Gautam Overseas Limited for Rs.90 lakhs.
The Company has received the sales consideration of Rs.90 lakhs in the F.Y 2009-10 which has been duly accounted for.
The Company Law Board has vide order dated 28.06.2010 restrained the Company from transferring of said shares, which
has been upheld by the Hon’ble High Court of Delhi. The Company had filed a Special Leave Petition (SLP) before the
Hon’ble Supreme Court of India, which was decided vide order dated 27.09.2024 & now the shares have been transfered.

45 The Company had purchased land at Delhi in 2013-14 . In the Master Plan for Delhi - 2007 the said land is notified
as Public- Semi Public Utility Corridor. The Company has filed petition with the Hon’ble High Court of Delhi to seek
the benefit of Section 24(2) of the Right to Fair compensation and Transparency in Land Acquisition, Rehabilitation and
Resettlement Act, 2013 and to declare acquisition proceedings initiated as lapsed. The Hon’ble High Court of Delhi in
Judgment dated 25 & 26 May 2015 and 9 February 2016 declared that acquisition process initiated deemed to have been
lapsed. The Hon’ble Supreme Court of India pursuant to Appeal filed by Delhi Development Authority and Land & Building
Authority of NCT of Delhi has also upheld that acquisition proceeding initiated deemed to have been lapsed vide their
orders dated 31.08.2016 and 04.05.2017. In 2019, the Government has declared the area as Urban, however the final
notice for the mutation is pending from their side, hence the Registration process is pending. The process of mutation
of land, the land use conversion from agricultural to other use is yet to be done in accordance with the applicable Laws.
The Company will get the land registered with appropriate authority,mutation and change of land use etc. upon issue of
requisite Notification by the Government.

46 Fair value measurements

Set out below, is a comparison by class of the carrying amounts and fair value of the Company's financial instruments,
other than those with carrying amounts that are reasonable approximations of fair values:

The fair value of the financial assets and liabilities is 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:

1) The fair value of unquoted instruments, loans from banks and other financial liabilities, as well as other non-current
financial liabilities is estimated by discounting future cash flows using rates currently available for debt on similar terms,
credit risk and remaining maturities. In addition to being sensitive to a reasonably possible change in the forecast cash
flows or the discount rate, the fair value of the equity instruments is also sensitive to a reasonably possible change in
the growth rates. The valuation requires management to use unobservable inputs in the model, of which the significant
unobservable inputs are disclosed in the tables below. Management regularly assesses a range of reasonably possible
alternatives for those significant unobservable inputs and determines their impact on the total fair value.

2) The fair values of the Company's interest-bearing borrowings and loans are determined by using Discounted cash flow
method using discount rate that reflects the issuer’s borrowing rate as at the end of the reporting period. The own non¬
performance risk as at 31 March 2025 was assessed to be insignificant.

3) Long-term receivables/ payables are evaluated by the Company based on parameters such as interest rates, risk factors,
individual creditworthiness of the counterparty and the risk characteristics of the financed project. Based on this
evaluation, allowances are taken into account for the expected credit losses of these receivables.

4) The significant unobservable inputs used in the fair value measurement categorized within Level 1 and Level 3 of the fair
value hierarchy together with a quantitative sensitivity analysis as at end of each year, are as shown below:

Fair value hierarchy

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by
valuation technique:

Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities

Level 2: other techniques for which all inputs that have a significant effect on the recorded fair value are observable,
either directly or indirectly

Level 3: techniques that use inputs that have a significant effect on the recorded fair value that are not based on
observable market data

The management assessed that cash and cash equivalents, trade receivables, trade payables, bank overdrafts and other
current liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

47 Financial risk management objectives and policies

The Company's principal financial liabilities, other than derivatives, comprise loans and borrowings, trade and other
payables. The main purpose of these financial liabilities is to finance the Company’s operations. The Company's principal
financial assets include loans, trade and other receivables, and cash and cash equivalents that are derived directly from
its operations.

The Company's financial risk management is an integral part of how to plan and execute its business strategies. The
Company is exposed to market risk, credit risk and liquidity risk.

The Company's senior management oversees the management of these risks. The senior professionals working to
manage the financial risks and the appropriate financial risk governance framework for the Company are accountable to
the Board of Directors and Audit Committee. This process provides assurance to Company's senior management that
the Company's financial risk-taking activities are governed by appropriate policies and procedures and that financial
risk are identified, measured and managed in accordance with Company policies and Company risk objective.

The Board of Directors reviews and agrees policies for managing each of these risks which are summarized as below:
(a) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of
changes in market prices. Market prices comprises three types of risk: currency rate risk, interest rate risk and
other price risks, such as equity price risk and commodity price risk. Financial instruments affected by market
risks include loans and borrowings, deposits, investments, and foreign currency receivables and payables. The
sensitivity analysis in the following sections relate to the position as at March 31, 2025. The analysis exclude the
impact of movements in market variables on: the carrying values of gratuity and other post-retirement obligations;
provisions; and the non-financial assets and liabilities. The sensitivity of the relevant Profit and Loss item is the
effect of the assumed changes in the respective market risks. This is based on the financial assets and financial
liabilities held as of March 31, 2025.

(i) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will
fluctuate because of changes in foreign exchange rates. The Company's exposure to the risk of changes in
foreign exchange rates relates primarily to the Company's operating activities (when revenue or expense
is denominated in foreign currency). Foreign currency exchange rate exposure is partly balanced by
purchasing of goods from the respective countries. The Company evaluates exchange rate exposure arising
from foreign currency transactions and follows established risk management policies.

Foreign currency risk sensitivity

The following tables demonstrate the sensitivity to a reasonably possible change in USD, AED & Euro
exchange rates, with all other variables held constant. The impact on the Company profit before tax is due
to changes in the fair value of monetary assets and liabilities. Foreign currency exposures recognized by the
Company that have not been hedged by a derivative instrument or otherwise are as under:

(ii) Commodity Price Risk

The Company is exposed to the risk of price fluctuation of raw material as well as finished goods.
The Company manages its commodity price risk by maintaining adequate inventory of raw
materials and finished goods considering future price movement. To counter raw material risk,
the Company works with various suppliers working in domestic and international market with
the objective to moderate raw material cost, enhance application flexibility and increased product
functionality and also invests in product development and innovation. To counter finished goods
risk, the Company deals with wide range of vendors and manages these risks through inventory
management and proactive vendor development practices. The Company also passes on the
Commodity price hike in case of several customers. When Company have fixed price contracts,
fixed price contracts are entered into after due consideration of the Commodity price volatility
during the delivery / contract period.

(b) Credit Risk

Credit Risk is the risk that the counter party will not meet its obligation 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,
foreign exchange transactions and other financial instruments.

(i) Trade Receivables

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. Credit quality of a
customer is assessed based on an extensive credit rating scorecard and individual credit limits
are defined in accordance with this assessment. Outstanding customer receivables are regularly

monitored. There are no customer whose contributing more than 10% of total trade receivables.
An impairment analysis is performed at each reporting date on trade receivables by lifetime

expected credit loss method based on provision matrix. The maximum exposure to credit risk at
the reporting date is the carrying value of each class of financial assets. 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.

(ii) Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company’s
treasury in accordance with the Company's policy. Investments of surplus funds are made in bank
deposits and other risk free securities. The limits are set to minimize the concentration of risks
and therefore mitigate financial loss through counterparty’s potential failure to make payments.

(c) Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on
time or at reasonable price. The Company's objective is to at all times maintain optimum levels of liquidity
to meet its cash and liquidity requirements. The Company closely monitors its liquidity position and deploys
a robust cash management system. It maintains adequate source of financing through the use of short term
bank deposits and cash credit facility. Processes and policies related to such risks are overseen by senior
management. Management monitors the Company’s liquidity position through rolling forecasts on the basis of
expected cash flows. The Company assessed the concentration of risk with respect to its debt and concluded
it to below:

For the purposes of Company's capital management, Capital includes equity attributable to the equity holders of the
Company and all other equity reserves. The primary objective of the Company’s capital management is to ensure that
it maintains an efficient capital structure and maximize shareholder value. The Company manages its capital structure
and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants.
To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders or issue
new shares. The Company is not subject to any externally imposed capital requirements. No changes were made in the
objectives, policies or processes for managing capital during the year ended March 31, 2024 and March 31, 2025.

The capital structure of the Company is based on the management's judgement of its strategic and day-to-day needs with
a focus on total equity so as to maintain investors, creditors and market confidence. The calculation of the capital for the
purpose of capital management is as below:

53 During the previous year, the Company has incorporated Tinna Rubber Arabia Ltd. in Saudi Arabia a wholly owned
subsidiary company with Authorised Capital of Saudi Rials 68,00,000 (Rs. 1500 Lakhs) (divided into 1000 equity shares
of Rial 6800 each) with the objective to carry on business of processing shredding and recycling of waste tyre.

54 Share based payment expenses

a) Description of share based payment arrangements

The Company has the following share based payment arrangement for employees:

The Company has implemented Employee Stock Option Plan 2023 ("ESOP 2023") as approved by the shareholder on
August 24, 2023. The scheme entitles employees of the Company to purchase shares in the Company at the stipulated
exercise price, subject to compliance with vesting conditions. The vesting conditions are mix of service and performance
based conditions.

56 In the earlier year, the Company had incorporated Tinna Rubber B.V. Netherland a wholly owned subsidiary company
with an Authorised Capital of Euro 10,000 (divided into 1000 equity shares of Euro 10 each) with the objective to carry
on business of waste recycling, end of life tyre recycling and trading of waste material/scrap. The Company is in the
process of winding up.

57 The Company has done the assessment of the recoverability of the preference share and based on the assessment, the
Company is not expected to recover the amount from the Indo Enterprises Private Limited. Accordingly the amount of
Rs. 120 lakhs has been written off during the year and has been shown under exceptional items in the statement of profit
and loss. (refer note - 7.1(b))

58 During the year ended March 31, 2025, the Company has availed the following borrowings from Kotak Mahindra Bank
for financing construction equipment. No charge has been created on any of the Company's assets in respect of these
Loans:

These borrowings were utilized for acquiring specific equipment for operational purposes. However, no charge has been
registered with the Registrar of Companies in respect of the above loans.

59 Additional regulatory information required by Schedule III of Companies Act, 2013

(i) Details of Benami Properties: 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 the
rules made thereunder.

(ii) Utilization of borrowed funds and share premium:

(I) The Company has not advanced or loaned or invested funds to any person(s) or entity(ies), including foreign
entities (intermediaries) with the understanding that the shall:

(a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or
on behalf of the Company (Ultimate Beneficiaries) or;

(b) Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

(II) 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 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 to or on behalf of the ultimate beneficiaries.

(iii) Investment made by the Company during the year is complied with the requirements of section 186 of
Companies Act 2013.

(iv) Undisclosed Income: There is no income undisclosed or surrendered as income during the current or previous
year in the tax assessments under the Income Tax Act,1961, that has not recorded in the books of accounts.

(v) Crypto Currency or Virtual Currency: The Company has not traded or invested in crypto currency or virtual
currency during the current or previous year.

(vi) Valuations of PPE, Intangible assets :The Company has not revalued its property, plant and equipment or
intangible assets or both during the current or previous year.

(vii) The Company has not granted any loans or advances in the nature of loans repayable on demand.

(viii) Based on our examination, which included test checks, the Company has used an accounting software for
maintaining its books of account for the financial year ended March 31, 2025 which has a feature of recording
audit trail (edit log) facility and the same has been operating for all relevant transactions recorded in the software
throughout the year except that no audit trail enabled at the data base level. Further, during the course of our audit
we did not come across any instance ofthe audit trail feature being tampered with except at data base level for such
accounting software to log any direct data changes which is maintained by a third party software service provider.
Further, the audit trail has been preserved by the Company as per the statutory requirements for record
retention.

60 Subsequent Events after the reporting period

The Company has evaluated all the subsequent events through May 23,2025 which is the date on which these standalone
financial statements were approved for issue, and no events have occurred from the balance sheet date through that
date except for matters that have already been considered in the standalone financial statements.

The accompanying notes are an integral part of these standalone financial statements.

As per our report of even date attached

For S S Kothari Mehta & Co. LLP For and on behalf of the Board of Directors

Chartered Accountants Tinna Rubber And Infrastructure Limited

Firm Registration No.: 000756N/N500441

Sunil Wahal Bhupinder Kumar Sekhri Subodh Kumar Sharma

Partner Managing Director Director

M. No.: 087294 DIN: 00087088 DIN: 08947098

Sanjay Rawat Ravindra Chhabra

Place: New Delhi Company Secretary Chief Financial Officer

Date: May 23, 2025 M. No.: A-23729 FCA:089206