Karamtara Engineering Ltd. ಖಾತೆಯ ಉಪಯುಕ್ತ ಮಾಹಿತಿ

P Provisions and Contingent Liabilities and Contingent Assets

Provisions are recognized when the Company has a legal and constructive obligation as a result of a past event, for which it is probable that cash outflow
will be required and a reliable estimate can be made of the amount of the obligation.

Contingent liabilities are disclosed when the Company has a possible or present obligation where it is not probable that an outflow of resources will be
required to settle it. Contingent assets are disclosed only when an inflow of economic benefit is probable.

Q Impairment Loss

The Company assesses at each Balance Sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Company
estimates the recoverable amount of the asset. The recoverable amount is the greater of the net selling price and value in use. In assessing value in use, the
estimated future cash flows are discounted to their present value based on an appropriate discount factor. If such recoverable amount of the asset or the
recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its
recoverable amount. The reduction is treated as an impairment loss and is recognized in the Statement of Profit and Loss. If at the Balance Sheet date, there
is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the
recoverable amount subject to a maximum of depreciable historical cost.

R Foreign Currency

a) Foreign Currency Transactions:- Transactions in foreign currencies are translated into the respective functional currencies of the Company at the
exchange rates on the date of transactions or an average rate, if the average rate approximates the actual rate at the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rate on the reporting date.
Ncn-monetary assets and liabilities that are measured at fair value in foreign currency are translated into the functional currency at the exchange rate when
the fair value was determined. Non-monetary assets and liabilities that are measured based on historical cost in a foreign currency are translated at the
exchange rate on the date of the transaction. Exchange differences are recognised in profit & loss, except exchange differences arising from the translation
of the following items which are recognised in OCI:

Equity investments at fair value through OCI (FVOCI)

A financial liability / assets designated as a hedge of the net investment in a foreign operation to the extent that a hedge is effective; and
Qualifying cash flow hedges to the extent that hedges are effective

b) Foreign Operations:- The assets and liabilities of foreign operations (subsidiaries, associates, joint arrangements, branches) including goodwill and fair
value adjustments arising on acquisition, are translated into INR, the functional currency of the Company, at the exchange rates on reporting date. The
income and expenses of foreign operations are translated into INR at the exchange rates on the dates of transactions or an average rate if the average rate
approximates the actual rate on the date of transaction.

When a foreign operation is disposed of in its entirety or partially such that control, significant influence or joint control is lost, the cumulative amount of
exchange differences related to that foreign operation recognised in OCI is reclassified to profit or loss as part of the gain or loss on disposal.

S Financial Instruments

Financial assets and financial liabilities are recognized when the company becomes a party to the contractual provisions of the instruments. Financial assets
and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and
financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the
financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or
financial liabilities at fair value through profit or loss ("FVTPL") are recognized immediately in the statement of profit and loss.

i) Financial Assets - amortised cost

Financial assets that meet the following conditions are measured at amortized cost (except for financial assets that are designated as at fair value through
profit or loss on initial recognition):

a) the asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows;

b) the contractual terms of the instrument give rise on specified dates to cash flows that are solely payments of principal and interest on the principal
amount outstanding.

ii) Financial Assets - FVTOCI

Financial assets that meet the following conditions are measured at Fair Value Through Other Comprehensive Income (FVOCI):

a) the asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows and selling financial assets;

b) the contractual terms of the instrument give rise on specified dates to cash flows that are solely payments of principal and interest on the principal
amount outstanding.

iii) Financial Assets - FVTPL

Financial Assets that do not meet the amortized cost or FVOCI criteria are measured at FVTPL. In addition, financial assets that meet the amortized cost or
FVOCI criteria but are designated as at FVTPL are measured at FVTPL.

iv) Impairment of Financial Assets

In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss on the following
financial assets and credit risk exposure:

a) Financial assets that are debt instruments, and are measured at amortised cost

b) Lease receivables under Ind AS 116

c) Trade receivables or any contractual right to receive cash or another financial asset that result from transactions that arc within the scope of Ind AS US

d) Loan commitments which are not measured as at FVTPL

e) Financial guarantee contracts which are not measured as at FVTPL

ECL is the difference between all contractual cash flows that are due to the entity in accordance with the contract and all the cash flows that the entity
expects to receive (i.e., all cash shortfalls), discounted at the original EIR.

v) Financial Liabilities

All financial liabilities are initially recognised at fair value, which is normally the transaction price plus, for those financial liabilities not carried at fair value
through profit & loss, directly attributable transaction costs.

All financial liabilities are subsequently measured at amortized cost using the effective interest method or at FVTPL except for a) financial liabilities that arise
when a transfer of a financial asset does not qualify for derecognition or when the continuing involvement approach applies or b) financial guarantee
contracts issued by the Company and c) commitments issued by the Company to provide a loan at below-market interest rate are measured in accordance
with the specific accounting policies set out below.

Financial liabilities that are not held-for-trading and are not designated as at FVTPL are measured at amortized cost at the end of subsequent accounting
periods. The carrying amounts of financial liabilities that are subsequently measured at amortized cost are determined based on the effective interest
method. Interest expense that is not capitalized as part of costs of an asset is included in the ''Finance costs'' line item.

vi) Forward Exchange Contracts

Forward contract is respect of assets and liabilities are measured at the fair value at the end of each reporting period and net impact thereof is recognised
and disclosed in the financial statements. The forward exchange contracts are marked to market and gain/loss on such contracts are recognised in the
Statement of Profit and Loss at the end of each reporting period, in respect of the actual export.

Note: 4.2

i. Pursuant to the approval of the Board of Directors dated August 03, 2024, Karamtara Renewables Saudi Ltd., a wholly-owned subsidiary, was incorporated under the jurisdiction of the
Kingdom of Saudi Arabia. The incorporation aligns with the Company''s strategic objective of expanding its presence in the renewable energy sector in the Middle East region.

ii. Pursuant to the approval of the Board of Directors dated December 28, 2024, Karamtara Green energy Ltd.fKGEl’}, a wholly-owned subsidiary, was incorporated on May IS, 202S , under the
jurisdiction of the India. The incorporation aligns with the Company''s strategic objective of expanding its presence in the renewable energy sector

iii. Pursuant to the approval of the Board of Directors dated August 03, 2024, the Company has invested in Clean Max Ame Private Limited. The incorporation aligns with the Company''s objective
for its all round growth and development in clean and green energy for long term consumption of renewable power from a Renewable Captive Generating Piant.

iv. Pursuant to the approval of the Board of Directors dated June 19, 2025, Manwant Manbir Singh Foundation.(HMS Foundation''}, a wholly-owned subsidiary, was incorporated on March 28,
2026 under the jurisdiction of the India to carry out Corporate Social Responsibility (CSR) activities. Equity shares subscribed but not have been remitted by the company and accordingly shown
as other financial liabilities as on March 31,2026.

A. Nature and purpose of reserves

(i) Securities Premium Reserve - Securities Premium Reserve is used to record premium on issuance of shares. The reserve is utilised in accordance with provisions of the Companies Act, 2013.

(ii) General Reserve - General reserve is created from time to time by way of transfer profits from retained earnings for appropriation purposes. General reserve is created by a transfer from one
component of equity to another 3nd is not an item of other comprehensive income.

(iii) Retained Carnings - Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to shareholders.

(iv) Other Comprehensive Income • Represents the effects of remeasurement of defined benefit obligations on account of actuarial gains & losses as well as gains and losses arising on the
revaluation of equity investments measured at fair value through other comprehensive income on cumulative basis.

B. Dividend

(i) Interim dividend of Rs. 1,106.50 lakhs paid on September 25,2024 for financial year 2024-25, which was approved by Board in meeting held on September 4, 2024

(ii) Interim dividend of Rs. 1,229.44 lakhs paid on April 08, 2024 for financial year 2023-24, which was approved by Board in meeting held on March 27,2024

Note >

(a) Fund Based limits (to the extent of Rs.35,033.99 lakhs as on 31st March 2026 and Rs. 27,365.14 Lakhs as on 31st March 2025) and Letter of Credit Suppliers - Acceptances (to the extent
of Rs. 60,261.59 lakhs as on 31st March 2026 anc Rs. 52,664.95 Lakhs as on 31st March 2025) are secured by first pari passu charge on current assets of the company except specific
assets sanctioned by specific lenders and second paripassu charge on movable Fixed Assets of the company except project specific assets sanctioned by specific lenders and second
paripassu charge on immovable assets located at (i) Plot no. B 8/2, MIDC, Tarapur, Dist Palghar -401506, (ii) Plot no. A-12, MIDC Jarapur ,Dist. Palghar- 401506, (iii) Plot no. B-9/1/1,
MIDC Jarapur ,Dist. Palghar 401506, (iv) Survey No. 54, Hissa No. 1A, Survey No. 55, Hissa No. 1 & Survey No. 58, Hissa No. 1, Survey No. 53, Survey No. 54, Hissa No. IB, Survey No. 55,
Hissa No. 2. Survey No. 56, Survey No. 57, Hissa No. 5 at Village Saravali, Taluka and Dist. Palghar, (v) Plot no. S-38/1, MIDC Jarapur .Dist. Palghar- 401506, (vi) Plot no. E-134, MIDC
Jarapur ,Dist. Palghar- 401506, (vii) Plot No. B-212, Butibori Five Star Industrial Area, MIDC, Near Indorama Gate No, 6, Umari, Tal- & sub District Hingna, Nagpur, (viii) Office at 117,
Morya estate, Oshiwara Link Road, Andheri(W), Mumbai - 53 (ix) Flat no.4,5,6,7,8 & 14, Sai Dham Complex, Boisar, Dist Palghar (x) and first parpassu charge on the immovabe asset at
Survey No.37/6/2, at Village Saravali, Taluka and District Palghar.

(b) Fund Based limits (to the extent of Rs.35,033.99 iakhs as on 31st March 2026 and Rs. 28,670.63 Lakhs as on 31st March 2025) and Letter of Credit Suppliers - Acceptances (to the extent
of Rs.66,498.37 lakhs as on 31st March 2025 and Rs. 55,876.33 Lakhs as on 31st March 2025) are secured by personal guarantee of two of the Directors of the Company.

In respect of working capital loans, quarterly returns or statements of current assets filed by the Company with banks are in agreement with the books of account

(c) Loan of Rs. Nil on 31st March 2026 and Rs 1,307.53 lakhs on 31st March 2025 is secured by personal guarantee by two Promoter Director(s) of the Company.

39 Segment Reporting:

The Company operates primarily in a single business segment: manufacturing solar structures for renewable energy projects and transmission towers for power
evacuation. Management regularly evaluates the overall business for resource allocation and performance, focusing on the Company as a whole. Performance is
reviewed at the entity level based on profit before tax. Consequently, no separate reportable segments are defined under Ind AS 108, “Segment Reporting."
Relevant segment information is provided in the consolidated financial statements (CFS), which the Company also prepares.

40 Employee Benefits:

The Company had a defined benefit gratuity plan. Gratuity is payable to all eligible employees of the Company on death, resignation / retirement after five
completed year of continuous service or permanent disablement. This gratuity plan is un-funded. The Company had ascertained the gratuity liability based on
actuarial valuation.

44 The Company has determined that carrying cost of assets is not less than recoverable amount and hence there is no impairment loss as per the Ind AS 3G on
Impairment of Assets issued by the ICAI.

45 (i). Bank charges and commission is after netting-off income from LC charges Rs.508.72 Lakhs reimbursed by clients for the period ended 31st March 2026 (31st
March 2025 : Rs 251.88 Lakhs).

(ii). Bank Guarantee Commission is amortized over the tenure of the respective Bank Guarantee issued.

Other Statutory Information/confirmatlon

49 As per section 248 of the Companies Act, 2013, there are no balances outstanding with struck off companies.

50 During the period, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the
Company to or in any other persons or entities, including foreign entities ("Intermediaries") with the understanding, whether recorded in writing or otherwise, that
the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has also not received any fund from
any parties (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or
on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

51 Ihe Company have 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.

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

53 The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

54 The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of
Layers) Rules. 2017.

55 The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period except for 3 cases wherein liability has
already been discharged and company is taking necessary action for filing satisfaction of charge.

56 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.

57 The borrowings obtained by the Company from banks and financial institutions have been applied for the purposes for which such loans were taken.

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

ii. Title deeds of all the immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the
lessee) are held in the name of the Company.

59 The Government of India, vide notification dated November 21, 2025, has notified the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social
Security, 2020, and the Occupational Safety, Health and Working Conditions Code, 2020 (collectively referred to as the "New Labour Codes"), which consolidate and
replace twenty-nine existing central labour laws into an unified framework governing employee benefits during employment and post-employment. The New
Labour codes, amongst other things introduced changes, including a uniform definition of wages for statutory purposes.

Further, on December 31, 2025,the Ministry of Labour & Employement, issued draft Central Rules and FAQs to facilitate assessment of the financial impact arising
from the New Labour Codes. In accordance with the requirements of Ind AS 19 - Employee Benefits, changes to employee benefit plans arising from legislative
amendments constitute a plan amendment, requiring immediate recognition of the resultant impact as past service cost in the period in which the amendment is
notified.

The management has assessed and disclosed the additional impact of the New Labour Codes on the company''s employee benefit obligations, based on the
information available as at the reporting date, in a manner consistent with the guidance issued by the Institute of Chartered Accountants of India (ICAI).
Accordingly, the Group has recognised an estimated additional cost of Rs.198.18 Lakhs which has been included under ''Employee Benefit Expenses'' in the financial
statement for the year ended March 31,2026.

The Group will continue to monitor further developments including the finalization of the central and state rules under the New Labour Codes, which are yet to be
notified and shall evaluate and give effect to any consequential accounting adjustments, if any arising therefrom in future periods, as and when required.

Note 60

Capital Management

Equity share capital and other equity are considered for the purpose of Company''s capital management. The Company manages its capital so as
to safeguard its ability to continue as a going concern and to optimise returns to shareholders. The capital structure of the Company is based on
management s judgement of its strategic and day-to-day needs with a focus on total equity so as to maintain investor, creditors and market
confidence.

Note 61

Financial Instruments
(i) Valuation

All financial instruments are initially recognized and subsequently re-measured at fair value as described below:

The fair value of financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction
between the willing parties, other than in a forced or liquidation sale.

The fair value of investment in quoted Equity Shares, Bonds, Government Securities, Treasury Bills and Mutual Funds is measured at quoted
price or NAV.

The fair value of the remaining financial instruments is determined using discounted cash flow analysis.

The financial instruments are categorized into two levels based on the inputs used to arrive at fair value measurements as described below:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities; and

Level 2: Inputs other than the quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

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

The carrying values of the financial instruments by categories were as follows:

(ii) Financial risk management

The Company''s business activities expose it to a variety of financial risks, namely market risks, credit risk and liquidity risk.

The Company''s primary focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its
financial performance.

The Company''s financial liabilities comprise of borrowings, trade payable and other liabilities to manage its operation and the financial assets
include trade receivables, deposits, cash and bank balances, other receivables etc. arising from its operation.

A. Market risk is the risk that the fair vaiue or future cash flows of a financial instrument will fluctuate because of changes in market prices.
Market prices comprise three types of risk: Foreign currency rate risk, interest rate risk and other price risks, such as equity price risk and
commodity risk.

b. 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, in cases where the borrowings are measured at fair
value through profit or loss. 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.

Exposure to Interest Rate Risk

Interest rate risk of the Company arises from borrowings. The Company endeavour to adopt a policy of ensuring that maximum of its interest
rate risk exposure is at fixed rate. The Company''s interest-bearing financial instruments are reported as below:

Credit risk

Credit risk arises from the possibility that the counterparty will default on its contractual obligations
Trade receivables

Our historical experience of collecting receivables is that credit risk is low. Hence, trade receivables are considered to be a single class of
financial assets. Credit risk has always been managed by each business segment through credit approvals, establishing credit limits and
continuously monitoring the credit worthiness of customers to which the Company grants credit terms in the normal course of business.

Other financial assets

Credit risk on cash and cash equivalents is limited as the Company generally invests in deposits with banks and financial institutions with high
credit ratings assigned by international and/or domestic credit rating agencies. Investments primarily include investment in liquid mutual fund
units, quoted bonds issued by Government and Quasi Government organizations and certificates of deposit which are funds deposited at a bank
for a specified time period.

Liquidity risk

liquidity risk refers to risk of financial distress or extra ordinary high financing cost arising due to shortage of liquid funds in a situation where
business conditions unexpectedly deteriorate and require financing. The Company''s objective is to maintain at all times optimum levels of
liquidity to meet its cash and collateral requirements. Processes and policies related to such risk are overseen by senior management and
management monitors the Company''s net liquidity position through rolling forecast on the basis of expected cash flows.

Significant accounting judgements, estimates and assumptions

The preparation of the Company''s financial statements requires management to make judgements, estimates and assumptions as described
below that affect the reported amounts and the accompanying disclosures. 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.

a. Assumption

The cost of the defined benefit plans and the present value of the defined benefit obligations are determined using actuarial valuations. An
actuarial valuation involves making various assumptions that may differ from actual developments in the future. For further details refer to note
40.

b. Estimates

The estimates used by the company to present the amount in accordance with Ind AS reflect conditions as at the transition date and as of
March 31, 2017.

Note 63

Reconciliation of income tax expense

Significant management judgement considered in determining provision for income tax, deferred income tax assets and liabilities and
recoverability of deferred income tax assets. The recoverability of deferred income tax assets is based on estimates of taxable income for the
period over which deferred income tax assets will be recovered.

respectively. The effective tax rate for the period ended March 31, 2026 has been higher primarily as a result of the facts mentioned above.

The ultimate parent entity of the Group is incorporated in India and the Group comprises domestic and overseas subsidiaries. Based on
evaluation carried out by the company, the company does not fall within the scope of OECD Pillar Two / Global Minimum Tax, as the group''s
consolidated revenue does not exceed EUR 750 million in at least two of the four preceding fiscal years and India has not enacted any operative
Domestic Minimum Top-up Tax / Qualified Domestic Minimum Top-up Tax, Income Inclusion Rule or Undertaxed Profits Rule as on reporting
date.

65. The Company has entered into supplier finance arrangements with financial institutions and other, which include trade payable financing facilities
and letter of credit facilities. These arrangements provide extended repayment terms to the Company and, in certain cases, allow suppliers to receive
early payment from the financiers.

A. Trade Payable Financing Facility: The Company has obtained a foreign non-banking finance company’s unsecured trade payable financing
arrangement. The annual interest rate for this facility is SOFR t 2.65%. The repayment term for each disbursement is 120- days.

B. Letter of Credit Facilities: The Company has availed letter of credit facilities from multiple banks. These facilities offer interest rates between 4.00% to
7.50%. These acceptances under letter of credit facilities have repayment terms ranging from 0 days to 180 days.

* Out of total above, Amount already paid by finance provider to vendors amounts to Rs. 8,910.00 Lakhs.

During the year. Supplier financial liabilities were impacted by foreign exchange movements amount to Rs 573.50 Lakhs

66. The disclosures under Schedule III of the Act, and applicable Indian Accounting Standards have been given to the extent applicable to the Company.
67 Previous year’s figures have been regrouped / reclassified / restated wherever necessary to conform to current year presentation.