(xx) Provisions, Contingent Liabilities and Contingent Assets
Provisions

Provisions are recognised when, based on Company’s 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 recognised 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 a provision is measured using the cash flows
estimated to settle the present obligation, its carrying amount is the present value of those cash
flows (when the effect of the time value of money is material).

Contingent Liabilities and Assets

Contingent liabilities are disclosed in the Standalone Financial Statements by way of notes to
accounts, unless possibility of an outflow of resources embodying economic benefit is remote.

Contingent assets are disclosed in the Standalone Financial Statements by way of notes to
accounts when an inflow of economic benefits is probable.

(xxi) Events after reporting date

Where events occurring after the Balance Sheet date provide evidence of conditions that existed
at the end of the reporting period, the impact of such events is adjusted within the Consolidated
Financial Statements. Otherwise, events after the Balance Sheet date of material size or nature
are only disclosed.

3. Critical Accounting Judgments, Estimates, Assumptions and Key Sources of Estimation
Uncertainty

The preparation of the Company’s Standalone Financial Statements requires management to make
judgements, estimates and assumptions that affect the reported amounts of revenues, expenses,
assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities at
the date of the Standalone Financial Statements. Estimates and assumptions are continuously
evaluated and are based on management’s experience and other factors, including expectations of
future events that are believed to be reasonable under the circumstances. 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.

Key estimates, assumptions and judgements

In particular, the Company has identified the following areas where significant judgements, estimates
and assumptions are required. Further information on each of these areas and how they impact the
various accounting policies are described below and also in the relevant notes to the Standalone
Financial Statements. Changes in estimates are accounted for prospectively.

(i) Income taxes

Significant judgements are involved in determining the provision for income taxes, including
amount expected to be paid/recovered for uncertain tax positions as also to determine the amount
of deferred tax that can be recognised, based upon the likely timing and the level of future taxable
profits.

(ii) Useful lives of Property, Plant and Equipment/Intangible Assets

Property, Plant and Equipment/ Intangible Assets are depreciated/amortised over their estimated
useful lives, after taking into account estimated residual value. The useful lives and residual
values are based on the Company’s historical experience with similar assets and taking into
account anticipated technological changes or commercial obsolescence. Management reviews
the estimated useful lives and residual values of the assets annually in order to determine the
amount of depreciation/amortisation to be recorded during any reporting period. The depreciation/
amortisaion for future periods is revised, if there are significant changes from previous estimates

and accordingly, the unamortised/depreciable amount is charged over the remaining useful life of
the assets.

(iii) Contingent Liabilities

In the normal course of business, Contingent Liabilities may arise from litigation and other claims
against the Company. Potential liabilities that are possible but not probable of crystallising or are
very difficult to quantify reliably are treated as contingent liabilities. Such liabilities are disclosed in
the Notes but are not recognised. Potential liabilities that are remote are neither recognised nor
disclosed as contingent liability. The management decides whether the matters need to be classified
as ‘remote’, ‘possible’ or ‘probable’ based on expert advice, past judgements, experiences etc.

(iv) Evaluation of Indicators for Impairment of Property, Plant and Equipment

The evaluation of applicability of indicators of impairment of assets requires assessment of external
factors (significant decline in asset’s value, economic or legal environment, market interest rates
etc.) and internal factors (obsolescence or physical damage of an asset, poor economic
performance of the idle assets etc.) which could result in significant change in recoverable amount
of the Property, Plant and Equipment and such assessment is based on estimates, future plans as
envisaged by Company.

(v) Actuarial Valuation:

The determination of Company’s liability towards defined benefit obligation to employees is
made through independent actuarial valuation including determination of amounts to be recognised
in the income statement and in other comprehensive income. Such valuation depends upon
assumptions determined after taking into account inflation, seniority, promotion and other relevant
factors such as supply and demand factors in the employment market.

(vi) Allowance for impairment of trade receivables

The expected credit loss is mainly based on the ageing of the receivable balances and historical
experience. The receivables are assessed on an individual basis assessed for impairment
collectively, depending on their significance. Moreover, trade receivables are written off on a
case-to-case basis if deemed not to be collectable on the assessment of the underlying facts and
circumstances.

(vii) Provisions

Provisions and liabilities are recognised in the period when it becomes probable that there will be
a future outflow of funds resulting from past operations or events and the amount of cash outflow
can be reliably estimated. The timing of recognition and quantification of the liability requires the
application of judgement to existing facts and circumstances, which can be subject to change.
The carrying amounts of provisions and liabilities are reviewed regularly and revised to take
account of changing facts and circumstances.

(viii) Revenue Recognition:

The Company’s contracts with customers include promises to transfer products to the customers.
The Company assesses the products promised in a contract and identifies distinct performance
obligations, if any, in the contract. Identification of distinct performance obligation involves
judgement to determine the deliverables and the ability of the customer to benefit independently
from such deliverables. Judgement is also required to determine the transaction price for the
contract. The Company exercises judgement in determining whether the performance obligation
is satisfied at a point in time or over time. The Company considers indicators such as to who
controls the asset as it is being created or existence of enforceable right to payment for performance
to date and alternate use of such product, transfer of significant risks and rewards to the customer,
acceptance of delivery by the customer, etc. The judgment is also exercised in determining the
variable consideration, if any, involved in transaction price and also in estimating the impact of
customer’s right to return the goods, based on prior experience. The company has exercised
judgments and concluded that it has only one performance obligation from each of its of its
contract with customers and it is being satisfied at a point in time.

Right, Preferences and restrictions attached to Shares

(i) The Company has only one class of shares i.e. Equity Shares having par value of ' 10 each. Each
holder of Equity Shares is entitled to one vote per share.

(ii) In the event of liquidation of the Company, the holders of equity shares will be entitled to receive
any of the remaining assets of the Company, after distribution of all preferential amounts. The
distribution will be in proportion to the number of equity shares held by the shareholders.

(iii) The Board of Directors of the holding company in their meeting held on 29th May, 2025 have
recommended a final dividend of ' 1.00 per Equity Share (previous year ' 2.50 per equity share)
to be approved by the shareholders in the ensuing general meeting.On approval, this will result in
an outflow of ' 97.84 Lakhs (Previous year ' 244.60 Lakhs).

Description of the nature and purpose of Other Equity

General Reserve : The General Reserve comprises of transfer of profits from retained earnings for
appropriation purposes. The reserve can be distributed/utilised by the Company in accordance with
the provisions of Companies Act, 2013.

Retained Earnings: Retained Earnings are the profits that the Company has earned till date and is net
of amount transferred to other reserves such as general reserves etc.& amount distributed as dividends
and related dividend distribution taxes.

Security Premium: The amount received in excess of face value of the equity shares is recognised in
Securities Premium Reserve. Security premium includes 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.

Share Warrants:On 1st August, 2024, members in Annual general meeting has approved issue of
9,16,390 (Nine Lakh Sixteen Thousand Three Hundred Ninety only) warrants, each convertible into, or
exchangeable for, one fully paid-up equity share of the Company of face value of ' 10/- each (“Warrants”)
at a price of ' 552 each including premium of ' 542 each, being not less than the price determined in
accordance with Chapter V of SEBI ICDR Regulations,2018, to the Promoter/Promoter Group of the
company and certain identified non-promoter persons/entities. The Company has received upfront
payment of 25% of the total consideration on 9,06,390 warrants as per the terms.

Reserve for equity instruments through Other Comprehensive Income : This represents cumulative
gains / (losses) arising on the measurement of equity instruments at Fair Value through Other
Comprehensive Income.

Equity Stock Option Reserve: Equity stock option reserve is used to recognise the fair value of equity
settled share based payment transactions.

21. Trade Payables

Micro, Small and Medium enterprises have been identified by the Company on the basis of the
information available. The relevant disclosures are given below :

Payment made to suppliers beyond the due date during the year was ' Nil (P.Y.? Nil). No interest
during the year has been paid to Micro and Small Enterprises as there were no delayed payments.
Further, interest accrued and remaining unpaid at the year end is ' Nil (P.Y.? Nil).

1. The revenue from contracts with customers for the year includes variable consideration (volume
& Rate discounts) of ' 92.58 lakhs (P.Y. ' 139.51 lakhs), which has been deducted from the
transaction price. The company uses expected value method in measuring the variable
consideration. There were no constraints in estimating variable consideration.

2. The Company has applied practical expedient referred to in paragraph 121 of Ind AS 115 and
accordingly, has not disclosed information related to remaining performance obligations. No
consideration from contracts with customers is excluded from the remaining performance
obligations.

3. The movement in Company’s receivables, contract assets and contract liabilities are as under:

38. Leases

The Company has taken certain warehouses,residential houses and vehicles on rent for its business
operations under leave and license agreements and rent agreements respectively. These are generally
not non-cancellable agreements and they are for the periods not exceeding 12 months under the said
agreements. The said agreements are renewable by mutual consent on mutually agreeable terms.

B. Defined Benefit Plans

The Company operates a defined benefit gratuity plan covering qualifying employees. Under this
plan, eligible employees are entitled to a post-retirement benefit calculated at 15 days’ salary for
each completed year of service, up to the retirement age of 58 years, subject to a maximum
payment ceiling of ' 20 lakhs. The benefit vests upon completion of five years of continuous
service, in accordance with the provisions of the Payment of Gratuity Act, 1972. Once vested, the
gratuity becomes payable upon retirement or termination of employment. The Company makes
annual contributions to a group gratuity scheme administered by the Life Insurance Corporation
of India (LIC) through its Gratuity Trust Fund. The liability towards the gratuity plan is determined
based on actuarial valuations carried out at the end of each reporting period using the projected
unit credit method, as prescribed under Ind AS 19 - Employee Benefits.

Gratuity is defined benefit plan and Company is exposed to following Risks:

Interest Risk :

A fall in the discount rate which is linked to the Government Securities Rate will increase the
present value of the liability requiring higher provision. A fall in the discount rate generally increases
the mark to market value of the assets depending on the duration of asset.

Salary Risk :

The present value of the defined benefit plan liability is calculated by reference to the future
salaries of members. As such, an increase in the salary of the members more than assumed level
will increase the plan’s liability.

Investment Risk :

The present value of the defined benefit plan liability is calculated using a discount rate which is
determined by reference to market yields at the end of the reporting period on government bonds.
If the return on plan asset is below this rate, it will create a plan deficit. Currently, for the plan in
India, it has a relatively balanced mix of investments in government securities, and other debt
instruments.

Mortality Risk :

Since the benefits under the plan is not payable for the life time and payable till retirement age
only, plan does not have any longevity risk.

Valuations in respect of above have been carried out by independent actuary, as at the balance
sheet date, based on the following assumptions:

Notes on Sensitivity Analysis

i. Sensitivity analysis for each significant actuarial assumptions of the Company which are
discount rate and salary assumptions as of the end of the reporting period, showing how the
defined benefit obligation would have been affected by changes is presented in the table
above.

ii. In presenting the above sensitivity analysis, the present value of the projected benefit
obligation has been calculated using the projected unit credit method at the end of the
reporting period, which is the same method as applied in calculating the projected benefit
obligation as recognised in the balance sheet.

iii. There is no change in the method from the previous period and the points /percentage by
which the assumptions are stressed are same to those in the previous year.

C. Compensated absences (Unfunded)

The obligations under the compensated absences plan have been determined by Independent
Actuary using Projected Unit Credit (PUC) method. Compensated absences is payable to all
eligible employees on separation from the Company due to death, retirement, superannuation or
resignation. At the rate of daily salary, as per current accumulation of leave days.

42. Disclosures on financial instruments

This section gives an overview of the significance of financial instruments for the Company and provides
additional information on balance sheet items that contain financial instruments.

The details of material accounting policies, including the criteria for recognition, the basis of
measurement and the basis on which income and expenses are recognised, in respect of each class
of financial asset, financial liability and equity instrument are disclosed in note 2 to the financial
statements.

(A) Financial assets and liabilities:

The following table presents the carrying amounts and fair value of each category of financial
assets and liabilities as at 31st March, 2025 and 31st March, 2024

(B) Capital Management

The company’s objective when managing capital is to:

- Safeguard its ability to continue as a going concern so that the Company is able to provide
maximum return to stakeholders and benefits for other stakeholders.

- Maintain an optimal capital structure to reduce the cost of capital.

The Company’s Board of Directors reviews the capital structure on a regular basis. As part of this
review, the Board considers the cost of capital, risk associated with each class of capital
requirements and maintenance of adequate liquidity.

(C) Fair Value Measurement:

This note provides information about how the Company determines fair values of various financial
assets.

Fair value of the Company’s financial assets / financial liabilities that are measured at fair
value on a recurring basis

Some of the Company’s financial assets are measured at fair value at the end of each reporting
period. The following table gives information about how the fair values of these financial assets
are determined.

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 - Inputs 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 for the assets or liabilities that are not based on observable market data
(unobservable inputs).

(b) Fair value of financial assets and financial liabilities that are not measured at fair value
(but fair value disclosures are required)

The carrying amounts of Financial Assets and Financial Liabilities recognised at amortized
cost to their fair values.

There has been no transfers between level 1, level 2 and level 3 for the years ended 31st
March, 2025.

(D) Financial risk management:

The Company’s financial risk management is an integral part of how to plan and execute its
business strategies. The risk management policy is approved by the Company’s Board. The
Company’s principal financial liabilities comprise of borrowings (if any), trade and other payables.
The main purpose of these financial liabilities is to finance the Company’s operations and to
provide guarantees to support its operations in selective instances. The Company’s principal
financial assets include trade and other receivables, and cash and cash equivalents that derive
directly from its operations and investments. The company is exposed to market risk, credit risk,
liquidity risk etc. The objectives of the Company’s financing policy are to secure solvency, limit
financial risks and optimise the cost of capital. The Company’s capital structure is managed using
equity and debt ratios as part of the Company’s financial planning.

1. Market risk:

Market risk is the risk that changes in market prices- such as foreign exchange rates, interest
rates and equity prices- will affect the Company’s income or the value of its holdings of
financial instrument. The objective of market risk management is to manage and control
market risk exposures within acceptable parameters while optimising the return. The major
components of market risk are foreign currency risk, interest rate risk and price risk.

(I) Foreign Currency Risk:

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will
fluctuate because of changes in foreign exchange rates. The Company undertakes
transactions denominated in foreign currencies; consequently, exposures to exchange rate
fluctuations arise.

Foreign currency exposure as at 31st March are hedged as per the policy of the company

(II) Interest rate risk:

The Company invests the surplus fund generated from operations in bank deposits . Bank
deposits are made for a period of up to 12 months and carry interest rate of 5%-7.25% as per
prevailing market interest rate. Considering these bank deposits are short term in nature,
there is no significant interest rate risk.

(IN) Price risk:

The Company’s equity securities price risk arises from investments held and classified in the
balance sheet at fair value through OCI. The Company’s equity investments in Securities are
publicly traded.

Price sensitivity analysis:

The sensitivity of profit or loss in respect of investments in equity shares at the end of the reporting
period for /-5% change in price and net asset value is presented below:

Other comprehensive income for the year ended 31st March, 2025 would increase / decrease by
' 74.78 Lakhs (P.Y. ' 72.16 Lakhs) as a result of 5% changes in fair value of equity investments
measured at FVTOCI.

2. Credit risk:

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting
in financial loss to the Company. The Company has adopted a policy of only dealing with
creditworthy counterparties as a means of mitigating the risk of financial loss from defaults. The
Company’s exposure and wherever appropriate, the credit ratings of its counterparties are
continuously monitored and spread amongst various counterparties. Credit exposure is controlled
by counterparty limits that are reviewed and approved by the management of the Company.
Financial instruments that are subject to concentrations of credit risk, principally consist of balance
with banks, investments in equity instruments and trade receivables.

None of the financial instruments of the Company result in material concentrations of credit risks,
which may result into financial loss for the company.

3. Liquidity risk:

The Company manages liquidity risk by maintaining sufficient cash and cash equivalents and
availability of funding through an adequate amount of committed credit facilities to meet the obligations
when due. Management monitors rolling forecasts of liquidity position and cash and cash equivalents
on the basis of expected cash flows. In addition, liquidity management also involves projecting cash
flows considering level of liquid assets necessary to meet obligations by matching the maturity
profiles of financial assets & liabilities and monitoring balance sheet liquidity ratios.

The information included in the tables have been drawn up based on the undiscounted cash
flows of financial liabilities based on the earliest date on which the Company may be required to
pay. The tables include both interest and principal cash flows. The contractual maturity is based
on the earliest date on which the Company may be required to pay.