36 Contingent Liabilities and Contingent Assets (Contd..)

In respect of the items above, future cash outflows in respect of contingent liabilities are determinable only on receipt of judgements/
decisions pending at various forums/authority. The Company doesn''t expect the outcome of matters stated above to have a material
adverse effect on the Company''s financial conditions, result of operations or cash flows.

Contingent Assets

The Company is having certain claims, realisation of which is dependent on outcome of legal process being pursued. The management
believe that probable outcome in all such claims are uncertain. Hence, the disclosure of such claims is not required in the Standalone
Financial Statement.

37 Commitments

Capital expenditure contracted as at the end of the reporting period but not recognised as liabilities is as follows:

39 Employee Benefits :

a) Defined contribution plans:

The Company makes contributions, determined as a specified percentage of employee salaries, in respect of qualifying employees towards
Provident Fund, Labour Welfare Fund and Employees'' State Insurance, which are defined contribution plans. The contributions are made
to registered provident fund and employees'' state insurance fund administered by the Government. The Company has no obligations other
than to make the specified contributions.

The contributions are charged to Standalone Statement of Profit and Loss as they accrue. The expense recognised during the year towards
defined contribution plans are as follows:

The amount recognised as an expense towards contribution to Provident Fund, Labour Welfare Fund and Employees'' State Insurance for
the year ended March 31, 2026 aggregated to H 2,381.33 lakhs (March 31, 2025: H 2,072.53 lakhs).

b) Defined benefit plans:

Gratuity

The Company provides for gratuity for every permanent employee who is entitled to a benefit equivalent to fifteen days wages (as defined
in the Labour Codes) based on the rate of wages last drawn by such employee for each completed year of service or part thereof in
excess of six months in line with the Code on Social Security, 2020, notified with effect from November 21, 2025. Gratuity is payable to
the employee on the termination of employment (due to superannuation, retirement or resignation, death or disablement) after having
rendered continuous service for such number of years as prescribed in the Code on Social Security, 2020.

39 Employee Benefits (Contd..)

In accordance with Ind AS 19 and the FAQs issued by ICAI, the changes to gratuity benefit resulting from the Labour Codes are treated as
past service costs and accordingly, the increase in the Company''s obligation due to application of the Labour Codes has been recognised in
the Statement of Profit and Loss.

The Company recognises all actuarial gains and losses arising from defined benefit plans immediately in the Standalone Statement of Profit
and Loss except remeasurement of Defined Benefit Obligations which is recognised in Other Comprehensive Income.

39 Employee Benefits (Contd..)

d) On November 21, 2025, the Government of India notified the four consolidated Labour Codes, replacing several existing labour laws. Based
on the Rules and the guidance currently available, the Company has evaluated the impact of the revised definition of wages on its employee
benefit obligations in accordance with Ind AS 19.

Following this assessment and the related actuarial valuation, the incremental impact arising from the implementation of the Labour Codes
is not material to its financial performance. This impact has been recognised under Employee Benefits Expense in the current year.

The Company will continue to monitor the finalisation of the relevant State Rules and will recognise additional impact, if any, in the period
in which such Rules or related clarifications are notified.

40 Share-Based Payments
Employee Stock Option Plan

The establishment of the DOMS Industries Limited Employee Stock Option Plan 2023 (ESOP 2023) was approved by shareholders at the
Annual General Meeting. The ESOP 2023 is designed to reward employees for association, dedication and contribution to the goals of
the Company. Under the plan, participants are granted options which vest upon completion of five years of service from the grant date.
Participation in the plan is at the board''s discretion and no individual has a contractual right to participate in the plan or to receive any
guaranteed benefits.

Options granted carry no dividend or voting rights and vest after a period of five years from the grant date and can be exercised within 6
months from the date of vesting. These options do not carry dividend or voting rights. Upon exercise, each option converts into one equity
share. The exercise price under ESOP 2023 is set at H 250 per share under ESOP 2023.

Notes

i) For all financial instruments referred above that have been measured at amortised cost, their carrying values are reasonable
approximations of their fair values.

ii) The carrying amounts of the borrowings that are not measured at fair value are reasonable approximation of fair value, as they are
floating rate instruments that are re-priced to market interest rates on or near the end of the reporting period.

b) Measurement of fair values

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the counter
derivatives) is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on
entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case
for unlisted equity securities included in level 3.

There were no changes made during the year to valuation methods or the processes to determine classification of level.

c) Financial risk management

The Company has a well-defined risk management framework. The Board of Directors of the Company has adopted a Risk Management
Policy. The Company has exposure to the following risks arising from financial instruments:

i) Credit risk

Credit risk is the risk that a customer or counterparty to a financial instrument will fail to perform or fail to pay amounts due causing
financial loss to the company. The potential activities where credit risks may arise include from cash and cash equivalents, security
deposits or other deposits and principally from credit exposures to customers relating to outstanding receivables. The maximum
credit exposure associated with financial assets is equal to the carrying amount.

Trade and other receivables

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer and the geography
in which it operates. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the
creditworthiness of customers to which the Company grants credit terms in the normal course of business.

The Company has a policy under which each new customer is analysed individually for creditworthiness before offering credit period
and delivery terms and conditions.

The ageing analysis of trade receivables is disclosed in Note 10.

Exposures to customers outstanding at the end of each reporting period are reviewed by the management to determine incurred
and expected credit losses. The calculation reflects the probability-weighted outcome, the time value of money and reasonable
and supportable information that is available at the reporting date about past events, current conditions and forecasts of future
economic conditions.

The management assesses and manages credit risk based on the Company''s credit policy. The management assesses on a forward
looking basis the expected credit losses associated with its assets carried at amortised cost. For trade receivables, the Company
applies the simplified approach permitted by Ind AS 109 Financial Instruments, which requires expected lifetime losses to be
recognised from initial recognition of the receivables. When determining whether the credit risk of a financial asset has increased
significantly since initial recognition and when estimating expected credit losses, the Company considers reasonable and supportable
information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and
analysis, based on the Company''s historical experience and informed credit assessment and including forward looking information.

Other financial assets

Other financial assets includes loan to employees and related party, security deposits, investments, cash and cash equivalents, other
bank balance, etc.

• Cash and cash equivalents and Bank deposits are placed with banks having good reputation and past track record with adequate
credit rating.

• Company has given security deposits to lessors for lease arrangements.

• The Company does not have exposure to any credit risk for such deposits.

• The Company''s investments are considered to have low credit risk. The investments are monitored for impairment annually.

• The Company considers the probability of default upon initial recognition of loan and whether there has been a significant
increase in credit risk on an ongoing basis throughout each reporting period. Company reviews actual or expected significant
adverse changes in business, financial or economic conditions that are expected to cause a significant change to the borrower''s
ability to meet its obligations.

ii) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities
that are proposed to be settled by delivering cash or other financial asset. The Company''s financial planning has ensured, as far as
possible, that there is sufficient liquidity to meet the liabilities whenever due, under both normal and stressed conditions, without
incurring unacceptable losses or risking damage to the Company''s reputation. The Company has practiced financial diligence and
syndicated adequate liquidity in all business scenarios.

iii) Market risk - Currency 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 instruments.

The Company''s operations result in it being exposed to foreign currency risk on account of trade receivables and trade payables. The
foreign currency risk may affect the Company''s income and expenses, or its financial position and cash flows. The objective of the
Company''s management of foreign currency risk is to maintain this risk within acceptable parameters, while optimising returns. The
Company''s exposure to, and management of these risks is explained below:

Market risk - Interest rate risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of
changes in fair values of fixed interest bearing investments because of fluctuations in the interest rates. Cash flow interest rate
risk is the risk that the future cash flows of floating interest bearing investments will fluctuate because of fluctuations in the
interest rates.

Sensitivity analysis

Profit or loss is sensitive to higher/lower interest expense from borrowings as a result of change in interest rates. Since no interest
rate exposure is perceived on fixed rate loans, the same have been excluded from the sensitivity analysis. A reasonably possible
change of 50 basis points in interest rates at the reporting date would have increased /(decreased) Equity and Profit or Loss by the
amount shown below:

Capital Management

The Company defines capital as total equity including issued equity capital, share premium and all other equity reserves attributable
to equity holders of the Company (which is the Company''s net asset value). The primary objective of the Company''s financial
framework is to support the pursuit of value growth for shareholders, while ensuring a secure financial base.

The Company monitors capital using a ratio of ''adjusted net debt'' to ''adjusted equity''. For this purpose, adjusted net debt is defined
as total interest-bearing loans and borrowings less cash and bank balances. Total equity comprises all components of equity.

Terms and conditions of transactions with related parties

a) The transactions with related parties are made on terms equivalent to those that prevail in arm''s length transactions. These
transactions are approved by the audit committee.

b) Outstanding balances at the year-end are unsecured and interest free except for loan from Directors. The Company has not
recorded any impairment of receivables relating to amounts owed by related parties during the year ended March 31, 2026 and
March 31, 2025.

c) The transactions with related parties have prior approval of the Audit Committee and Shareholders, where applicable, in
accordance with the applicable regulations/Act.

Reasons for Variance (only for change in the ratio by more than 25% as compared to the previous year)

Debt-Equity Ratio & Debt Service Coverage Ratio: The variation is primarily due to increase in profits and repayment of borrowings
during the year.

Net Capital Turnover Ratio: The variation is primarily due to increase in revenues and more efficient utilization of working capital
by the Company.

45 Other Regulatory Information required by Schedule III

i) Details of Benami Property held

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

ii) Borrowing secured against current assets

The Company has borrowings from banks on the basis of security of current assets. The quarterly returns or statements of current assets
filed by the Company with banks are in agreement with the books of accounts during the current or previous year.

iii) Wilful Defaulter

The Company has not been declared wilful defaulter by any bank or financial institution or other lender during the current or previous year.

iv) Relationship with struck off companies

The Company has reviewed transactions to identify if there are any transactions with struck off companies. To the extent information is
available on struck off companies, there are no transactions with struck off companies during the current or previous year.

v) Compliance with number of layers of companies

The Company has complied with the number of layers prescribed under the Companies Act, 2013, read with the Companies (Restriction on
number of layers) Rules, 2017 during the current or previous year.

vi) Compliance with approved scheme(s) of arrangements

The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

45 Other Regulatory Information required by Schedule III (Contd..)

vii) Utilisation of borrowed funds and share premium

During the current and previous year, the Company has not advanced or loaned or invested funds to any other person(s) or entity(ies),
including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

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

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

During the current and previous year, 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 on behalf of the ultimate beneficiaries

viii) Undisclosed Income

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax
Act, 1961, that has not been recorded in the books of account.

ix) Details of crypto currency or virtual currency

The Company has not traded or invested in Crypto Currency or Virtual Currency during the current or previous year.

x) Valuation of Property, Plant & Equipment, right-of-use assets, intangible asset and investment property

The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the
current or previous year.

xi) Audit Trail in Accounting Software

The Company has used accounting software for maintaining its books of account which has a feature of recording audit trail (edit log)
facility and that has operated throughout the year for all relevant transactions recorded in the software, except that the audit trail is
not maintained in case of modification by certain users with specific access and for direct database changes. The Company is evaluating
necessary actions to address the requirement.

46 During the year ended March 31, 2024, the Company had completed its Initial Public Offer ("IPO") of 15,196,510 equity shares of face value
of H 10/- each comprising of (i) fresh issue of 4,367,088 equity shares at an issue price of H 790 per equity share; (ii) fresh issue of 69,930
equity shares at an issue price of H 715 per equity share for employee quota; (iii) an offer for sale of 10,759,492 equity shares at an issue
price of H 790 per equity share. The equity shares of the Company were listed on BSE Limited ("BSE") and National Stock Exchange of India
Limited ("NSE") on December 20, 2023.

47 Regrouping/reclassification

Figures of previous years are regrouped/reclassified wherever necessary to conform to the current year''s classification.

48 Summary of Other Accounting Policies

This note provides a list of other accounting policies adopted in the preparation of these Standalone Financial Statements to the extent they
have not already been disclosed in the other notes above. These policies have been consistently applied to all the years presented, unless
otherwise stated.

a) Property, plant and equipment

The Company''s accounting policy for land is explained in Note 3. Historical cost includes expenditure that is directly attributable to the
acquisition of the items.

Subsequent costs are included in the asset''s carrying amount or recognised as a separate asset, as appropriate, only when it is probable
that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The
carrying amount of any component accounted for as a separate asset is derecognised when replaced. All other repairs and maintenance are
charged to Standalone Statement of Profit and Loss during the reporting period in which they are incurred.

An asset''s carrying amount is written down immediately to its recoverable amount if the asset''s carrying amount is greater than its
estimated recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in Standalone Statement of
Profit and Loss within other income/other expense, as appropriate.

For entity specific details about property, plant and equipment Refer Note 3.

On transition to Ind AS, the Company has elected to continue with the carrying value of all of its property, plant and equipment measured
as per the previous GAAP and use that carrying value as the deemed cost of the property, plant and equipment.

Capital work in progress and Capital advances

Assets under construction includes the cost of property, plant and equipment that are not ready to use at the balance sheet date. Advances
paid to acquire property, plant and equipment before the balance sheet date are disclosed under other non-current assets. Assets under
construction are not depreciated as these assets are not yet available for use.

b) Leases

The Company assesses whether a contract is or contains a lease, at inception of the contract. The Company recognises a right-of-use asset
and a corresponding lease liability with respect to all lease arrangements in which it is the lessee, except for short-term leases (defined as
leases with a lease term of 12 months or less) and leases of low value assets. For these leases, the Company recognises the lease payments
as an operating expense in the Standalone Statement of Profit and Loss.

Rental contracts may have extension/termination option. These options are used to maximize operational flexibility in terms of managing
the assets used in the Company''s operations. Extension and termination options are included in the lease term, only if the Company has the
right to exercise these options and reasonably certain to exercise the right.

Right-of-use assets are measured at cost comprising the following:

• the amount of the initial measurement of lease liability

• any lease payments made at or before the commencement date less any lease incentives received

• any initial direct costs

• restoration costs.

Right-of-use assets are depreciated over the shorter period of lease term and useful life of the underlying asset. If a lease transfers
ownership of the underlying asset or the cost of the right-of-use asset reflects that the Company expects to exercise a purchase option, the
related right-of-use asset is depreciated on a straight-line basis over shorter of the lease term and the useful life of the underlying asset. The
depreciation starts at the commencement date of the lease.

Lease liabilities

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted
by using the rate implicit in the lease. If this rate cannot be readily determined, the Company uses its incremental borrowing rate.

The lease liability is presented as a separate line in the Standalone Financial Statement. The lease liability is subsequently measured by
increasing the carrying amount to reflect interest on the lease liability (using the effective interest method) and by reducing the carrying
amount to reflect the lease payments made.

Lease payments included in the measurement of the lease liability comprise:

• Fixed lease payments (including in-substance fixed payments), less any lease incentives receivable;

• The amount expected to be payable by the lessee under residual value guarantees;

• The exercise price of purchase options, if the lessee is reasonably certain to exercise the options; and

• Payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to terminate the lease.

• The lease term has changed or there is a significant event or change in circumstances resulting in a change in the assessment of
exercise of a purchase option, in which case the lease liability is remeasured by discounting the revised lease payments using a
revised discount rate.

• The lease payments change due to changes in an index or rate or a change in expected payment under a guaranteed residual value, in
which cases the lease liability is remeasured by discounting the revised lease payments using an unchanged discount rate (unless the
lease payments change is due to a change in a floating interest rate, in which case a revised discount rate is used).

• A lease contract is modified and the lease modification is not accounted for as a separate lease, in which case the lease liability is
remeasured based on the lease term of the modified lease by discounting the revised lease payments using a revised discount rate
at the effective date of the modification. The effective date of the modification is the date when both the parties agree to the lease
modification and is accounted for in that point in time. The right-of-use assets comprise the initial measurement of the corresponding
lease liability, lease payments made at or before the commencement day any initial direct costs, less any lease incentives received.
They are subsequently measured at cost less accumulated depreciation and impairment losses.

c) Intangible assets and amortisation

Development costs that are directly attributable to the design and testing of identifiable and unique software products controlled by the
Company are recognised as intangible assets where the following criteria are met:

• it is technically feasible to complete the software so that it will be available for use

• management intends to complete the software and use or sell it

• there is an ability to use or sell the software

• it can be demonstrated how the software will generate probable future economic benefits

• adequate technical, financial and other resources to complete the development and to use or sell the software are available, and

• the expenditure attributable to the software during its development can be reliably measured.

On transition to Ind AS, the Company has elected to continue with the carrying value of all of its intangible assets measured as per the
previous GAAP and use that carrying value as the deemed cost of the intangible assets.

d) Financial assets

i) Recognition and derecognition

Regular way purchases and sales of financial assets are recognised on trade-date, being the date on which the Company commits to
purchase or sell the financial asset. Financial assets are derecognised when the rights to receive cash flows from the financial assets
have expired or have been transferred and the Company has transferred substantially all the risks and rewards of ownership.

ii) Measurement

At initial recognition, the Company measures a financial asset (excluding trade receivables which do not contain a significant financing
component) at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are
directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or
loss are expensed in Standalone Statement of Profit and Loss.

iii) Impairment of Financial Assets

The Company assesses on a forward-looking basis the expected credit losses associated with its assets carried at amortised cost. The
impairment methodology applied depends on whether there has been a significant increase in credit risk. Note 42 details how the
Company determines whether there has been a significant increase in credit risk.

iv) Offsetting of financial instruments

Financial assets and liabilities are offset and the net amount is reported in the Standalone Balance Sheet where the Company
currently has a legally enforceable right to offset the recognised amounts, and there is an intention to settle on a net basis or realise
the asset and settle the liability simultaneously.

e) Inventories

Raw materials and packing materials, work in progress, traded and finished goods are stated at the lower of cost and net realisable value.
Cost of raw materials, packing materials and stock-in-trade comprises cost of purchases. Cost of work-in-progress and finished goods
comprises direct materials, direct labour, and an appropriate proportion of variable and fixed overhead expenditure, the later being
allocated on the basis of normal operating capacity. Cost of inventories also include all other costs incurred in bringing the inventories to
their present location and condition.

Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the
estimated costs necessary to make the sale. Raw materials and other supplies held for use in the production of finished products are not
written down below cost except in cases where material prices have declined and it is estimated that the cost of the finished products will
exceed their net realisable value. The comparison of cost and net realisable value is made on an item-by-item basis.

f) Cash and cash equivalents

Cash and cash equivalents includes cash on hand, balances in current accounts, deposits held at call with Banks/financial institutions, other
short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash
and which are subject to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown within borrowings in
current liabilities in the Standalone Balance Sheet.

g) Bank Balances other than cash and cash equivalents as above

Other bank balances comprise term deposits with banks, which have original maturities of more than three months. Such assets are
recognised and measured at amortised cost (including directly attributable transaction cost) using the effective interest method, less
impairment losses, if any.

h) Equity

Equity shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a
deduction, net of tax, from the proceeds.

i) Borrowings

Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised
cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in Standalone Statement of
Profit and Loss over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities are
recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case,
the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be
drawn down, the fee is capitalised as a prepayment for liquidity services and amortised over the period of the facility to which it relates.

Borrowings are derecognised from the Standalone Balance Sheet when the obligation specified in the contract is extinguished, cancelled
or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party
and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in Standalone Statement of Profit

and Loss as other income/(expense).consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in
Standalone Statement of Profit and Loss as other income/(expense).

Borrowings are classified as current liabilities unless, at the end of the reporting period, the Company has an unconditional right to defer
settlement of the liability for at least 12 months after the reporting period. Where there is a breach of a material provision of a long¬
term loan arrangement on or before the end of the reporting period with the effect that the liability becomes payable on demand on the
reporting date, the entity does not classify the liability as current, if the lender agreed, after the reporting period and before the approval of
the Standalone Financial Statements for issue, not to demand payment as a consequence of the breach.

j) Employee benefits

i) Short-term obligations

Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months after
the end of the period in which the employees render the related service are recognised in respect of employees'' services up to the
end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are
presented as current employee benefit obligations in the Standalone Balance Sheet.

ii) Other long-term obligations

The Company also has liabilities for compensated absences that are not expected to be settled wholly within 12 months after the end
of the period in which the employees render the related service. These obligations are therefore measured as the present value of
expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the
projected unit credit method. The benefits are discounted using the appropriate market yields at the end of the reporting period that
have terms approximating to the terms of the related obligation. Remeasurements as a result of experience adjustments and changes
in actuarial assumptions are recognised in Standalone Statement of Profit and Loss.

The obligations are presented as current liabilities in the Standalone Balance Sheet if the entity does not have an unconditional right,
at the end of the reporting period, to defer settlement for at least twelve months after the reporting period, regardless of when the
actual settlement is expected to occur.

iii) Post-employment obligations

The Company has the following post-employment schemes:

• defined benefit plans such as gratuity

• defined contribution plans.

The liability or asset recognised in the Standalone Balance Sheet in respect of defined benefit pension and gratuity plans is the
present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit
obligation is calculated annually by actuaries using the projected unit credit method.

The present value of the defined benefit obligation denominated in INR is determined by discounting the estimated future cash
outflows by reference to market yields at the end of the reporting period on government securities that have terms approximating to
the terms of the related obligation.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value
of plan assets. This cost is included in employee benefit expense in the Standalone Statement of Profit and Loss.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the
period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of
changes in equity and in the Standalone Balance Sheet.

Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised
immediately in Standalone Statement of Profit and Loss as past service cost.

iv) Defined contribution plans

The Company contributes towards various employee related funds as per local regulations. The Company has no further payment
obligations once the contributions have been paid. The contributions are accounted for as defined contribution plans and the

contributions are recognised as employee benefit expense when they are due. Prepaid contributions are recognised as an asset to the
extent that a cash refund or a reduction in the future payments is available.

k) Trade and Other Payables

These amounts represent liabilities for goods and services provided to the Company prior to the end of the financial year which are unpaid.
Trade and other payables are presented as current liabilities unless payment is not due within 12 months after the reporting period. They
are recognised initially at their fair value and subsequently measured at amortised cost using the effective interest method.

l) Dividend

Provision is made for the amount of any dividend declared, being appropriately authorised on or before the end of the reporting period, but
not distributed at the end of the reporting period. As per Corporate laws in India, a distribution in the nature of final dividend is authorised
when it is approved by the shareholders. A corresponding amount is recognised directly in equity.

m) Provisions, Contingent Assets, and Contingent Liabilities

Provisions

Provisions for legal claims are recognised when the Company has a present legal or constructive obligation as a result of past events, it is
probable that an outflow of resources will be required to settle the obligation, and the amount can be reliably estimated. Provisions are not
recognised for future operating losses.

Provisions are measured at the present value of management''s best estimate of the expenditure required to settle the present obligation
at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that reflects current market
assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is
recognised as interest expense.

Contingent liabilities

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only
by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the company or a present
obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable
estimate of the amount cannot be made.

Contingent Assets

Contingent assets are not recognised in the financial assets. However, the same is considered when the realisation is certain and it is no
longer considered contingent. The asset is recognised in the period in which the change from contingent asset to asset occurs.

n) Income Tax

The income tax expense or credit for the period is the tax payable on the current period''s taxable income based on the applicable income
tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to
unused tax losses.

Deferred tax assets and liabilities are offset where there is a legally enforceable right to offset current tax assets and liabilities and where
the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally
enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Current and deferred tax is recognised in Standalone Statement of Profit and Loss, except to the extent that it relates to items recognised
in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in
equity, respectively.

o) Share-based Payments

Employee options

The fair value of options granted under the DOMS Industries Limited Employee Stock Option Plan 2023 is recognised as an employee
benefits expense with a corresponding increase in equity. The total amount to be expensed is determined by reference to the fair value of
the options granted:

(i) including any market performance conditions (for example, the entity''s share price)

(ii) excluding the impact of any service and non-market performance vesting conditions (for example, profitability, sales growth targets
and remaining an employee of the entity over a specified time period)

(iii) including the impact of any non-vesting conditions (for example, the requirement for employees to save or hold shares for a specific
period of time).

The total expense is recognised over the vesting period, which is the period over which all of the specified vesting conditions are to be
satisfied. At the end of each period, the entity revises its estimates of the number of options that are expected to vest based on the non¬
market vesting and service conditions. The entity recognises the impact of the revision to original estimates, if any, in Standalone Statement
of Profit and Loss, with a corresponding adjustment to equity.

Where shares are forfeited due to a failure by the employee to satisfy the service conditions, any expenses previously recognised in relation
to such shares are reversed effective from the date of the forfeiture.

p) Borrowing cost

General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are
capitalised during the period of time that is required to complete and prepare the asset for its intended use or sale. Qualifying assets are
assets that necessarily take a substantial period of time to get ready for their intended use or sale.

Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted
from the borrowing costs eligible for capitalisation.

Other borrowing costs are expensed in the period in which they are incurred.

q) Earnings per Share

i) Basic earnings per share

Basic earnings per share is calculated by dividing:

• the profit attributable to equity shareholders of the Company,

• by the weighted average number of equity shares outstanding during the financial year.

ii) Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account:

• the after income tax effect of interest and other financing costs associated with dilutive potential equity shares

• the weighted average number of additional equity shares that would have been outstanding assuming the conversion of all
dilutive potential equity shares.

r) Impairment of Assets

Intangible assets that have an indefinite useful life are not subject to amortisation and are tested annually (or more frequently) for
impairment, if events or changes in circumstances indicate that they might be impaired.

Other assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount might not
be recoverable.

An impairment loss is recognised for the amount by which the asset''s carrying amount exceeds its recoverable amount. The recoverable
amount is the higher of an asset''s fair value less costs of disposal and value in use. For the purposes of assessing impairment, assets are
grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from
other assets or group of assets (cash-generating units).

s) Foreign Currency Translation

Foreign currency monetary assets and liabilities denominated in foreign currency are translated at the exchange rates prevailing on the
reporting 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.

Exchange differences arising on settlement or translation of monetary items are recognised as income or expense in the Standalone
Statement of Profit & Loss.

t) Rounding of amounts

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

m) Provisions, Contingent Assets, and Contingent Liabilities

Provisions

Provisions for legal claims are recognised when the Company has a present legal or constructive obligation as a result of past events, it is
probable that an outflow of resources will be required to settle the obligation, and the amount can be reliably estimated. Provisions are not
recognised for future operating losses.

Provisions are measured at the present value of management''s best estimate of the expenditure required to settle the present obligation at the
end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the
time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense.

Contingent liabilities

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only
by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the company or a present
obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable
estimate of the amount cannot be made.

Contingent Assets

Contingent assets are not recognised in the financial assets. However, the same is considered when the realisation is certain and it is no
longer considered contingent. The asset is recognised in the period in which the change from contingent asset to asset occurs.

48 Summary of Other Accounting Policies (Contd..)

n) Income Tax

The income tax expense or credit for the period is the tax payable on the current period''s taxable income based on the applicable income tax rate
for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.

Deferred tax assets and liabilities are offset where there is a legally enforceable right to offset current tax assets and liabilities and where
the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally
enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Current and deferred tax is recognised in Standalone Statement of Profit and Loss, except to the extent that it relates to items recognised in other
comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity.

o) Share-based Payments

Employee options

The fair value of options granted under the DOMS Industries Limited Employee Stock Option Plan 2023 is recognised as an employee benefits expense
with a corresponding increase in equity. The total amount to be expensed is determined by reference to the fair value of the options granted:

(i) including any market performance conditions (for example, the entity''s share price)

(ii) excluding the impact of any service and non-market performance vesting conditions (for example, profitability, sales growth targets
and remaining an employee of the entity over a specified time period)

(iii) including the impact of any non-vesting conditions (for example, the requirement for employees to save or hold shares for a specific
period of time).

The total expense is recognised over the vesting period, which is the period over which all of the specified vesting conditions are to be
satisfied. At the end of each period, the entity revises its estimates of the number of options that are expected to vest based on the non¬
market vesting and service conditions. The entity recognises the impact of the revision to original estimates, if any, in Standalone Statement
of Profit and Loss, with a corresponding adjustment to equity.

Where shares are forfeited due to a failure by the employee to satisfy the service conditions, any expenses previously recognised in relation
to such shares are reversed effective from the date of the forfeiture.

p) Borrowing cost

General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are
capitalised during the period of time that is required to complete and prepare the asset for its intended use or sale. Qualifying assets are
assets that necessarily take a substantial period of time to get ready for their intended use or sale.

Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted
from the borrowing costs eligible for capitalisation.

Other borrowing costs are expensed in the period in which they are incurred.

q) Earnings per Share

i) Basic earnings per share

Basic earnings per share is calculated by dividing:

• the profit attributable to equity shareholders of the Company,

• by the weighted average number of equity shares outstanding during the financial year.

ii) Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account:

• the after income tax effect of interest and other financing costs associated with dilutive potential equity shares

• the weighted average number of additional equity shares that would have been outstanding assuming the conversion of all
dilutive potential equity shares.

r) impairment of Assets

Intangible assets that have an indefinite useful life are not subject to amortisation and are tested annually (or more frequently) for
impairment, if events or changes in circumstances indicate that they might be impaired.

Other assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount might not
be recoverable.

An impairment loss is recognised for the amount by which the asset''s carrying amount exceeds its recoverable amount. The recoverable
amount is the higher of an asset''s fair value less costs of disposal and value in use. For the purposes of assessing impairment, assets are
grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from
other assets or group of assets (cash-generating units).

s) Dividend

Provision is made for the amount of any dividend declared, being appropriately authorised on or before the end of the reporting period, but
not distributed at the end of the reporting period. As per Corporate laws in India, a distribution in the nature of final dividend is authorised
when it is approved by the shareholders. A corresponding amount is recognised directly in equity.

t) Foreign Currency Translation

Foreign currency monetary assets and liabilities denominated in foreign currency are translated at the exchange rates prevailing on the
reporting 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.

Exchange differences arising on settlement or translation of monetary items are recognised as income or expense in the Standalone
Statement of Profit & Loss.

u) Rounding of amounts

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

As per our report of even date attached

For Price Waterhouse Chartered Accountants LLP For and on behalf of the Board of Directors of

Firm Registration Number: 012754N/N500016 DOMS Industries Limited (formerly known as DOMS Industries Private Limited)

CIN: L36991GJ2006PLC049275

Arunkumar Ramdas Santosh Raveshia Sanjay Rajani

Partner Managing Director Whole-time Director

Membership Number: 112433 DIN: 00147624 DIN: 03329095

Place: Umbergaon, India Place: Umbergaon, India Place: Umbergaon, India

Date: May 19, 2025 Date: May 19, 2025 Date: May 19, 2025

Rahul Shah Mitesh Padia

Chief Financial Officer Company Secretary

Membership Number: A58693

Place: Umbergaon, India Place: Umbergaon, India

Date: May 19, 2025 Date: May 19, 2025

(o) Provisions, contingent liabilities and contingent assets

Provisions: Provisions are recognised when there is a present obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the amount of the obligation. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the balance sheet date and are not discounted to its present value, unless the time value of money is material.

Contingent liabilities: Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.

Contingent Assets: Contingent assets are not recognised in the financial assets. However, the same is considered when the realisation is certain and it is no longer considered contingent. The asset is recognised in the period in which the change from contingent asset to asset occurs.

(p) Functional and presentation currency

Items included in the financial statements of the Company are presented in INR which is our Company''s functional currency.

All amounts have been rounded-off to the nearest lakhs and decimals thereof, unless otherwise mentioned.

(q) Income tax

Income tax expense comprises current and deferred tax. It is recognised in profit or loss except to the extent that it relates to a business combination, or items recognised directly in equity or in Other comprehensive income.

The Company has determined that interest and penalties related to income taxes, including uncertain tax treatments, do not meet the definition of income taxes, and therefore accounted for them under Ind AS 37 Provisions, Contingent Liabilities and Contingent Assets.

i. Current tax

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to the tax payable or receivable in respect of previous years. It is measured using tax rates enacted or substantially enacted as at the reporting date.

Current tax assets and liabilities are offset only if:

a) there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority; and

b) there is intention either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

The amount of current tax payable or receivable is the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to income taxes, if any.

ii. Deferred tax

Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is also recognised in respect of carried forward tax losses and tax credits. Deferred income tax is also not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting profit nor taxable profit (tax loss).

The existence of unused tax losses is strong evidence that future taxable profit may not be available. Therefore in case of history of recent losses, the Company recognises a deferred tax asset only to the extent that it has sufficient taxable temporary difference or there is convincing other evidence that sufficient taxable profits will be available against which such deferred tax asset can be realised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised. Unrecognised deferred tax assets are reassessed at each reporting date and recognised to the extent that it has become probable that future taxable profits will be available against which they can be used.

Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted or substantively enacted at the reporting date and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.

Deferred tax assets and liabilities are offset only if the entity has a legal enforceable right to set off current tax assets / liabilities and they relate to income taxes levied by the same taxation authority on the same taxable entity.

(r) Earnings per share (EPS)

Basic earnings per share (EPS) is computed by dividing the profit after tax or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Diluted earnings per share is computed by dividing the profit after tax as adjusted for dividend, interest and other charges to expense or income (net of any attributable taxes) relating to dilutive potential equity shares, by the weighted average number of equity shares considered for deriving the basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all the dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their conversion to equity would decrease the net profit per share from continuing ordinary operations.

(s) Export incentives

Export benefits available under prevalent schemes are accrued in the year in which the goods are exported and there is no uncertainty in receiving the same.

(t) Segment Reporting

Operating segment are reported in a mmaner consistent with the internal reporting provided to the Chief operating decision maker ( CODM).

Identification of segments : In accordance with Ind As 108

"operating segment", the operating segment used to present segment information reviewed by CODM to allocate resources to the segments and assess their performance. An operating segment is a component of the Company that engages in the bussiness activities from which it earns revenues and incurs expenses, including revenues and expenses that relate to transactions with any of the Company''s other components.

(u) Dividend

The Company recognises a liability for any dividend declared but not distributed at the end of the reporting period, when the distribution is authorised and the distribution is no longer at the discretion of the Company on or before the end of the reporting period. As per Corporate laws in India, a distribution in the nature of final dividend is authorized when it is approved by the shareholders. A corresponding amount is recognized directly in equity.

(v) Standards issued but not yet effective

Ministry of Corporate Affairs ("MCA”) notifies new standard or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as amended from time to time. There are no such recently issued standards or amendments to the existing standards for which the impact on the Standalone financial statements is required to be disclosed.

(w) Events after reporting date

Where events occur 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 with the financial statements. Otherwise, events after the balance sheet date of material size or nature are only disclosed.

2(ii) Key Judgments, estimates and assumptions

The preparation of the Company''s financial statements require management to make judgments, estimates and assumptions that affect the reported amounts of revenue, expenses, assets, liabilities, and the accompanying disclosures along with contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require material adjustments to the carrying amount of assets or liabilities affected in future periods. The Company continually evaluates these estimates and assumptions based on the most recently available information. The Management believes that the estimates used in preparation of the Financial Statements are prudent and reasonable.

Judgement

Information about critical judgements in applying accounting policies, as well as estimates and assumptions that have the most significant risk of causing a material adjustment to the carrying amounts of assets and liabilities are included in the following notes:

• Useful lives of property, plant and equipment (including right of use assets) and intangible assets ( Note 3, 4 & 5)

• Definition of lease, lease term and discount rate for the calculation of lease liability (Note 37)

Assumptions and estimation uncertainities

Information about critical judgements in applying accounting policies, as well as estimates and assumptions that have the most significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are included in the following notes:-

• Identifying performance obligations under contracts with customer (Note 45)

• Timing of revenue recognition under contracts with customers (Note 45)

• Measurement of Defined Benefit Obligations (Note 41)

• Recognition and measurement of provisions and contingencies, key assumptions about the likelihood and magnitude of an outflow of resources (Note 38(b))

• Provision for Expected credit losses (Note 11)

• Recognition of deferred tax assets (Note 36)

The terms of the vehicle loans are as follows:

(i) The rate of interest of various vehicle loan ranges from 8.30% to 10.50%. The vehicle loan is repayable in equated monthly installments.

(ii) The loans are secured by hypothecation of underlying vehicles.

Note 18(b)

The terms of the term loan are as follows:

(i) Secured term loan from bank amounting to H 1,000.00 lakhs, outstanding as at March 31, 2024 H 783.88 lakhs (March 31, 2023 :

H 958.38 lakhs) is repayable in 60 equated monthly installments starting from January 07, 2023 with last installment payable on December 07, 2027. The rate of interest is bank reference rate plus spread of 1% to 1.5% p.a.. The Company has mortgaged identified immovable properties against the term loan (refer note 3(ii)).

(ii) Secured term loan from bank amounting to H 626.40 lakhs, outstanding as at March 31, 2024 H 550.54 lakhs (March 31, 2023 : H 620.79 lakhs) is repayable in 84 equated monthly installments starting from March 07, 2023 with last installment payable on February 07, 2030. The rate of interest is bank reference rate plus spread of 1% to 1.5% p.a.. The Company has mortgaged identified immovable properties against the term loan (refer note 3(ii)).

Note 18(c)

Unsecured loan from related parties carries interest rate in the range of 9.0% p.a. The tenor of the loan is 3 years from the

date of drawdown.

The terms of the cash credit facility are as follows:

The rate of interest is is bank reference rate plus spread of 1.4% to 1.6% p.a.

Cash credit facility from HDFC Bank is primarily secured by hypothecation by way of first and exclusive charge on all present and future stocks and book debts. Cash credit facility from BNP Paribas is secured by standby letter of credit. Quarterly statements of stock and book debts are filed with the HDFC bank which are in agreement with the books of accounts.

Note 20(b)

The terms of the buyer credit facility (sub limit of Cash Credit limit) are as follows:

The rate of interest is LIBOR/SOFR plus spread of 1.5 to 3.0% p.a..

The other terms of the facilities are same as mentioned in Note 20(a).

Note 20(c)

Cash credit facility from Axis Bank is unsecured. The rate of interest is 3 months MCLR plus spread of 0.20% to 0.45% p.a..

Note 20(d)

Unsecured loan from related parties carries interest rate in the range of 9.0% p.a. The loan is repayable on demand.

Utilization of borrowings from banks and financial institutions

Borrowings from banks and financial institutions have been utilized for the specific purpose for which it were taken.

Wilful Defaulter

The Company has not been declared as wilful defaulter by any bank or financial institution or any other lender.

39 Events Occurring after the Reporting Period

Pursuant to approval of Board of Directors received on March 20, 2024 and the subsequent Share Subscription Agreement and Shareholders Agreement entered between the parties on March 28, 2024, the Company paid share application money amounting to H 51.00 lakhs to acquire 51% stake in SKIDO Industries Private Limited (''SKIDO'') by subscribing to 5,10,000 (Five lakhs and ten thousand) Equity Shares of H 10/- each. The shares of SKIDO were allotted to the Company on April 01, 2024 effective which SKIDO became subsidiary of the Company from that date.

40 Earning per share (EPS)

EPS is calculated by dividing the Profit / (loss) for the year attributable to equity holders by the weighted average number of equity shares outstanding during the period.

Diluted EPS are calculated by dividing the Profit / (loss) for the year attributable to equity holders by the weighted average number of equity shares outstanding during the period plus the weighted average number of equity shares that would be issued on conversion of all the dilutive potential equity shares into equity shares.

Ind AS 33 ''Earnings per share'', requires an adjustment in the calculation of basic and diluted earnings per share for all the periods presented if the number of equity or potential equity shares outstanding change as a result of issue of bonus shares. The weighted average numbers

41 Employee Benefits :

a) Defined contribution plans:

The Company makes contributions, determined as a specified percentage of employee salaries, in respect of qualifying employees towards Provident Fund, Labour Welfare Fund and Employees'' State Insurance, which are defined contribution plans. The Company has no obligations other than to make the specified contributions. The contributions are charged to statement of profit or loss as they accrue. The amount recognised as an expense towards contribution to Provident Fund, Labour Welfare Fund and Employees'' State Insurance for the year ended March 31, 2024 aggregated to H 1,736.06 lakhs (March 31, 2023: H 973.71 lakhs).

b) Defined benefit plans:

The Company''s gratuity benefit scheme is a defined benefit plan (unfunded). The Company''s net obligation in respect of a defined benefit plan is calculated by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value. Any unrecognised past service costs and the fair value of any plan assets are deducted. The calculation of the Company''s obligation is performed bi-annually by a qualified actuary using the projected unit credit method.

The Company recognises all actuarial gains and losses arising from defined benefit plans immediately in the standalone statement of profit and loss except remeasurement of Defined Benefit Obligations which is recognised in Other Comprehensive Income. All expenses related to defined benefit plans are recognised in employee benefits expense in the Statement of profit and loss. When the benefits of plan are improved, the portion of the increased benefit related to past service by employees is recognised in the standalone statement of profit and loss. The Company recognises gains and losses on the curtailment or settlement of a defined benefit plan when the curtailment or settlement occurs. In arriving at the valuation for gratuity following assumptions were used:

h) Code on Social Security, 2020:

The date of implementation of the Code on Social Security, 2020 (''the Code'') relating to employee benefits is yet to be notified by the Government and when implemented will impact the contributions by the Company towards benefits such as Provident Fund, Gratuity etc. The Company will assess the impact of the Code and give effect in the financial results when the Code and Rules thereunder are notified.

42 Operating Segment

a) The Company has determined its business segment as "Stationery Products". Since the Company''s business is from single business reporting segment i.e. sale of stationery products, there are no other primary reportable segments. Thus, the segment revenue, segment results, total carrying amount of segment assets, total carrying amount of segment liabilities, total cost incurred to acquire segment assets, total amount of charge for depreciation during the year is as reflected in the standalone financial statement.

b) Geographical Segment

The secondary segment of the Company is based on revenue generated from the geographical locations, these being within India (domestic) and outside India (exports).

Notes

i) The Company has not disclosed the fair value of financial assets such as Investments, trade receivables, trade payables, short term loans, deposits etc. because their carrying amounts are a reasonable approximation of fair value.

ii) The carrying amounts of the borrowings that are not measured at fair value are reasonable approximation of fair value, as they are floating rate instruments that are re-priced to market interest rates on or near the end of the reporting period.

b) Measurement of fair values

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

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes mutual funds that have quoted price. The mutual funds are valued using the closing NAV.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the counter derivatives) is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

43 Financial instruments - Fair values and risk management (Contd.)

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities included in level 3.

There were no changes made during the year to valuation menthods or the processes to determine classification of level.

c) Financial risk management

The Company has a well-defined risk management framework. The Board of Directors of the Company has adopted a Risk Management Policy. The Company has exposure to the following risks arising from financial instruments:

• Credit risk ;

• Liquidity risk ; and

• Market risk

i) Credit risk

Credit risk is the risk that a customer or counterparty to a financial instrument will fail to perform or fail to pay amounts due causing financial loss to the company. The potential activities where credit risks may arise include from cash and cash equivalents, security deposits or other deposits and principally from credit exposures to customers relating to outstanding receivables. The maximum credit exposure associated with financial assets is equal to the carrying amount.

Trade and other receivables

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer and the geography in which it operates. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business.

The Company has a policy under which each new customer is analysed individually for creditworthiness before offering credit period and delivery terms and conditions.

The ageing analysis of trade receivables is disclosed in Note 11.

Exposures to customers outstanding at the end of each reporting period are reviewed by the management to determine incurred and expected credit losses. The calculation reflects the probability-weighted outcome, the time value of money and reasonable and supportable information that is available at the reporting date about past events, current conditions and forecasts of future economic conditions.

The management assesses and manages credit risk based on the Company''s credit policy. The management assesses on a forward looking basis the expected credit losses associated with its assets carried at amortised cost. For trade receivables, the Company applies the simplified approach permitted by Ind AS 109 Financial Instruments, which requires expected lifetime losses to be recognised from initial recognition of the receivables. When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating expected credit losses, the Company considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the Company''s historical experience and informed credit assessment and including forward looking information.

The Company''s trade receivables are geographically dispersed. The Management does not believe there are any particular customers or group of customers that would subject the Company to any significant credit risks in the collection of accounts receivable.

Other financial assets

Other financial assets includes loan to employees, security deposits, investments, cash and cash equivalents, other bank balance, advances to employees etc.

• Cash and cash equivalents and Bank deposits are placed with banks having good reputation and past track record with adequate credit rating.

• Company has given security deposits to lessor for lease . the Company does not have exposure to any credit risk.

ii) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are proposed to be settled by delivering cash or other financial asset. The Company''s financial planning has ensured, as far as possible, that there is sufficient liquidity to meet the liabilities whenever due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation. The Company has practiced financial diligence and syndicated adequate liquidity in all business scenarios.

(iii) Market risk - Currency 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 instruments.

The Company''s operations result in it being exposed to foreign currency risk on account of trade receivables, trade payables and borrowings. The foreign currency risk may affect the Company''s income and expenses, or its financial position and cash flows.

The objective of the Company''s management of foreign currency risk is to maintain this risk within acceptable parameters, while optimising returns. The Company''s exposure to, and management of these risks is explained below:

Capital Management

The Company defines capital as total equity including issued equity capital, share premium and all other equity reserves attributable to equity holders of the Company (which is the Company''s net asset value). The primary objective of the Company''s financial framework is to support the pursuit of value growth for shareholders, while ensuring a secure financial base.

The Company monitors capital using a ratio of ''adjusted net debt'' to ''adjusted equity''. For this purpose, adjusted net debt is defined as total interest-bearing loans and borrowings less cash and bank balances. Total equity comprises all components of equity.

45 Ind AS 115 - Revenue from Contracts with Customers

i) The Company is in the business of manufacturing, trading and selling of stationery. All sales are made at a point in time and revenue

recognised upon satisfaction of the performance obligations which is typically upon dispatch/delivery depending on the contractual terms with the customers. Accruals for discounts/incentives are estimated (using the most likely method) based on accumulated experience and underlying schemes and agreements with customers. The Company has a credit evaluation policy based on which the credit limits for the trade receivables are established and the Company does not give significant credit period resulting in no significant financing component.

46 Corporate Social Responsibility

As per Section 135 of the Companies Act 2013, the Company has formed a Corporate Social Responsibility (CSR) Committee. The CSR Committee approved CSR Policy where certain focus areas out of list of activities covered in Schedule VII of the Companies Act 2013, have been identified to incur CSR expenditure.

i) Gross amount required to be spent by the Company during the year H 72.52 lakhs (March 31, 2023: H 21.04 lakhs). During the current year, the company has spent H 74.00 lakhs (March 31, 2023: H 31.00 lakhs) for purpose other than construction/acquition of asset. Out of the excess amount spent, the company has carried forward H 1.48 lakhs (March 31, 2023: H 9.95 lakhs ) to next year to offset against the mandatory spend in the next year.

48 Transaction with Struck off Companies

The Company has reviewed transactions to identify if there are any transactions with struck off companies. To the extent information is available on struck off companies, there are no transactions with struck off companies.

49 Disclosure of Intermediaries

The Company has not advanced or loaned or invested funds- either borrowed funds or share premium or any other sources or kind of funds to any other person or entity, including foreign entities (Intermediaries) with an understanding that the Intermediary shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company or provide any guarantee, security or the like to or on behalf of the Company.

The Company has not received any fund from any person or entity, including foreign entities (Funding Party) with the understanding that the Company shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

50 Other statutory information

i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

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

iii) The Company has not traded or invested in Crypto Currency or Virtual Currency during the period.

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

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

51 During the year ended March 31, 2024, the Company has completed its Initial Public Offer ("IPO") of 1,51,96,510 equity shares of face value of H 10/- each comprising of (i) fresh issue of 43,67,088 equity shares at an issue price of H 790 per equity share; (ii) fresh issue of 69,930 equity shares at an issue price of H 715 per equity share for employee quota; (iii) an offer for sale of 1,07,59,492 equity shares at an issue price of H 790 per equity share. The equity shares of the Company were listed on BSE Limited ("BSE") and National Stock Exchange of India Limited ("NSE") on December 20, 2023.

Out of the Net proceeds which were unutilised as at March 31, 2024, H 24,400.00 lakhs are temporarily invested in Fixed Deposits, H 903.70 lakhs is held in the Company''s Monitoring Account, while the balance amount is held in the public offer account towards the Company''s share of expenses related to Issue.

52 Dividends declared are based on the profit available for distribution. On May 24, 2024, the Board of Directors have recommended a

dividend of H 2.50 per equity share in respect of the year ended March 31, 2024, subject to the approval of shareholders at the ensuing Annual General Meeting. If approved, the dividend would result in a cash outflow of H 1,517.18 lakhs.

As per our report of even date attached

For B S R & Co. LLP For and on behalf of the Board of Directors of

Chartered Accountants DOMS Industries Limited (formerly known as DOMS Industries Private Limited)

Firm Registration No. 101248W/W-100022 CIN: L36991GJ2006PLC049275

Tarun Kinger Santosh Raveshia Sanjay Rajani

Partner Managing Director Whole-time Director

Membership No: 105003 DIN: 00147624 DIN: 03329095

Place: Umbergaon, India Place: Umbergaon, India Place: Umbergaon, India

Date: May 24, 2024 Date: May 24, 2024 Date: May 24, 2024

Rahul Shah Mitesh Padia

Chief Financial Officer Company Secretary

Membership No: A58693

Place: Umbergaon, India Place: Umbergaon, India

Date: May 24, 2024 Date: May 24, 2024