Seshaasai Technologies Ltd. ಖಾತೆಯ ಉಪಯುಕ್ತ ಮಾಹಿತಿ

1.9 Provisions, contingent liabilities and
contingent assets

Provisions

Provisions are recognised when the Company has
a present obligation (legal or constructive) 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 a reliable
estimate can be made of the amount of the
obligation. The expense relating to a provision is
presented in the statement of profit and loss.

Contingent liabilities

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

Contingent Assets

Contingent Assets are disclosed, where an
inflow of economic benefits is probable.

Commitments

Commitments represent contractual
obligations entered into by the Company
that are not recognized as liabilities as at the
reporting date in accordance with applicable
Indian Accounting Standards. Capital
commitments are disclosed in respect of
contracts remaining to be executed on capital
account, net of advances paid.

Bank guarantees and other financial
guarantees issued by the Company in the
ordinary course of business are disclosed as
commitments to the extent they do not meet
the recognition criteria for financial liabilities.

Dividends recommended by the Board of
Directors after the reporting date are not
recognized as a liability at the reporting date
and are recognized as a liability only upon
approval by the shareholders.

1.10 Cash and Cash Equivalents

Cash and cash equivalents comprise cash in
hand and at bank (in current accounts) and
term deposits maturing within 3 months from
the date of deposit. Term deposits maturing
beyond 3 months, earmarked balances with
banks and deposits held as margin money
or security against Bank guarantees, LC,
borrowings etc. have not been considered as
Cash and Cash Equivalents.

1.11 Statement of Cash Flows

Cash flows are reported using the indirect
method, whereby net profit before tax is
adjusted for the effects of transactions of a non¬
cash nature, any deferrals or accruals of past
or future operating cash receipts or payments
and item of income or expenses associated
with investing or financing cash flows. The cash
flows from operating, investing and financing
activities of the Company are segregated.

1.12 Revenue Recognition
Revenue from Operations

The Company derives revenues primarily
from Sale of Products and services including
manufacturing and trading.

Revenue is measured based on the consideration
that is specified in a contract with a customer or
is expected to be received in exchange for the
products or services and excludes amounts
collected on behalf of third parties. Revenue is
recognized upon transfer of control of promised
products or services to customers. To recognize
revenues, the Company applies the following
five step approach:

(1) Identify the contract with a customer,

(2) Identify the performance obligations
in the contract,

(3) Determine the transaction price,

(4) Allocate the transaction price to
the performance obligations in
the contract, and

(5) Recognize revenues when a performance
obligation is satisfied.

The revenue is recognised when (or as) the
performance obligation is satisfied, which
typically occurs when (or as) control over the
products or services is transferred to a customer.

Contract modifications are accounted for when
additions, deletions or changes are approved
either to the contract scope or contract price.
The accounting for modifications of contracts
involves assessing whether the products/
services added to an existing contract are
distinct and whether the pricing is at the
standalone selling price. Products/Services
added that are not distinct are accounted for on
a cumulative catch-up basis, while those that
are distinct are accounted for prospectively,
either as a separate contract, if the additional
products/services are priced at the standalone
selling price, or as a termination of the existing
contract and creation of a new contract if not
priced at the standalone selling price.

Revenue is recognized upon transfer of control
of promised products or services to customers
in an amount that reflects the consideration
the Company expect to receive in exchange
for those products or services. Revenue is
disclosed net of Goods and Service Tax in the
statement of profit and loss.

The Company accounts for rebates/discounts
to customers as a reduction of revenue based
on the underlying performance obligation that
corresponds to the progress by the customer
towards earning the rebate/discount. The
company accounts for the liability based on its
estimates of future timely receipts of the billed
and unbilled revenue. If it is probable that the
criteria for rebate/discount will not be met, or
if the amount thereof cannot be estimated
reliably, then rebate/discount in not recognised
until the payment is probable and amount
can be estimated reliably. Such rebates/
discounts are accounted as the reduction
from the revenue.

Interest Income

Interest Income from a financial asset is
recognized using the effective interest method.
Interest on refund of Income Tax is accounted
in the year of receipt.

Other Income

Lease income is recognised in the manner
mentioned in sub note1.4 above.

Difference in Exchange rates recognised as
income, in the manner mentioned in sub
note 1.13 below.

Bad debts recovered considered as income, in
the year, the same is being recovered.

Claims received is accounted in the
year of receipt.

Dividend Income is recognized when the
Company''s right to receive the payment has
been established.

Government grants and subsidies are
accounted when there is reasonable
assurance that the Company will comply
with the conditions attached to them and it is
reasonably certain that the ultimate collection
will be made. Capital grants relating to specific
fixed assets are reduced from the gross value
of the respective fixed assets. Revenue grants
are recognized in the Statement of Profit and
Loss. 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.

1.13 Foreign Exchange Transactions

Transactions in foreign currencies are
translated into the functional currency of the
Company at exchange rates at the date of
transactions or an average rate if the average
rate approximates the actual rate at the date
of transaction.

Monetary assets and liabilities denominated
in foreign currencies are translated into the
functional currency at the exchange rate at
the reporting date. Foreign Exchange gains
and losses resulting from the settlement of
such transactions and from the translation of
monetary-assets and liabilities denominated in
foreign currency at year / period end exchange
rate are generally recognised in profit or loss.

Non-monetary assets and liabilities that are
measured at fair value in a 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 foreign currency are translated at
the exchange rate at the date of transaction.
Exchange differences are recognised in the
profit or loss, except exchange differences
arising from the translation of qualifying
cash flow hedges to the extent hedges are
effective which are recognised in Other
Comprehensive Income (OCI)

1.14 Borrowing Cost

Borrowing costs are interest and other costs
(including exchange differences relating to
foreign currency borrowings to the extent that
they are regarded as an adjustment to interest
costs) incurred in connection with the borrowing
of funds. Borrowing costs directly attributable
to acquisition or construction of an asset which
necessarily take a substantial period of time to
get ready for their intended use are capitalised
as part of the cost of that asset. Other borrowing
costs are recognised as an expense in the
period in which they are incurred.

(i) Commencement of capitalization

Capitalisation of borrowing cost as part
of the cost of a qualifying asset shall
begin on the commencement date. The
commencement date for capitalisation is
the date when the entity first meets all of
the following conditions:

a. it incurs expenditures for the asset;

b. it incurs borrowing costs; and

c. it undertakes activities that are
necessary to prepare the asset for its
intended use or sale.

(ii) Cessation of capitalisation

Cessation of capitalisation shall happen
when substantially all the activities
necessary to prepare the qualifying asset
for its intended use or sale are complete.

Other borrowing costs are recognised
as an expense in the period in which
they are incurred.

1.15 Share Capital and Share Premium, Dividend
Distribution to Equity Shareholders:

Ordinary shares are classified as equity,
incremental costs directly attributable to the
issue of new shares are shown in equity as a
deduction net of tax from the proceeds. Par
value of the equity share is recorded as share
capital and the amount received in excess of
the par value is classified as share premium.

Incremental costs that are directly attributable
to the issue of equity instruments which are
incurred in connection with Company''s Initial
Public Offering (IPO), and which would have
been avoided if the equity instruments had not
been issued, are recognized as a deduction
from share premium.

The Company recognizes a liability to make
cash distributions to equity holders when the
distribution is authorized and the distribution
is no longer at the discretion of the Company.
A distribution is authorized when it is approved
by the shareholders. A corresponding amount
is recognized directly in other equity along with
any tax thereon.

1.16 Earnings per share

Basic earnings per equity share is calculated by
dividing the net profit or loss after tax (before
considering other comprehensive income) for

the year attributable to equity shareholders of
the Company by the weighted average number
of equity shares outstanding during the year.

Diluted earnings per equity share, if any, is
computed by dividing the net profit or loss for
the year as adjusted for dividend, interest and
other charges to expense or income relating
to the dilutive potential equity shares, by the
weighted average number of equity shares
and dilutive potential equity share outstanding
during the period except when the results would
be anti-dilutive.

1.17 Regrouping of Previous Year''s figures

The Company has adopted the policy of
regrouping certain figures for the purpose of
better presentation and/or to comply with the
amended Indian Accounting Standards and
Schedule III, if any, for the current, comparative
period and opening balance sheet.

1.18 Standards issued but not yet effective

Ministry of Corporate Affairs ("MCA") notifies
new standards or amendments to the
existing standards under Companies (Indian
Accounting Standards) Rules as issued from
time to time. For the year ended March 31,
2026, MCA has not notified any new standards
or amendments to the existing standards
applicable to the Company.

RECLASSIFY THE EXISTING SHARE CAPITAL OF THE COMPANY

Pursuant to the approval of shareholders by an ordinary resolution passed at the Extraordinary General Meeting held
on 22/10/2024, and subsequent filing of Form SH 7 with the Registrar of Companies on 18/11/2024, the company has
reclassified from the existing H1,50,50,00,000 (Rupees One Hundred Fifty Crores Fifty Lakhs only) divided into 1,48,05,000
(One Crore Forty Eighty Lakhs and Five Thousand only) equity shares of H 100 (Rupees One Hundred Only) each and
2,45,000 (Two Lakh Forty Five Thousand) preference shares of H 100 (Rupees One Hundred Only) each to H 1,50,50,00,000
(Rupees One Hundred Fifty Crores Fifty Lakhs only) divided into 1,50,50,000 (One Crore Fifty Lakhs and Fifty Thousand
only) equity shares of H 100 (Rupees One Hundred Only) each under Sections 13, 61, and 64 of the Companies Act, 2013.

SUB-DIVISION OF EQUITY SHARES

The shareholders in their Extraordinary General Meeting held on 22/10/2024, approved the subdivision of each
authorised and issued equity shares of face value of Rs.100 into 10 (ten) equity shares of face value of H 10 each.

INCREASE IN AUTHORISED SHARE CAPITAL

The authorized share capital of the company increased from the existing H 1,50,50,00,000 (Rupees One Hundred Fifty
Crores Fifty Lakhs only) divided into 15,05,00,000 (Fifteen Crores Five Lakhs only) equity shares of H 10 (Rupees ten only)
each to H 1,62,50,00,000 (Rupees One Hundred Sixty Two Crore Fifty Lakhs only) divided into 16,25,00,000 (Sixteen Crore
Twenty Five Lakhs only) equity shares of H 10 (Rupees Ten only) each through an ordinary resolution passed by the
shareholders of the company in Extra Ordinary General Meeting of Company held on 22/10/2024.

Note No 16.2: Terms/rights attached to equity shares

(a) The company has only one class of equity shares having a par value of H 10 per share. Each holder of equity shares
is entitled to one vote per share.

(b) The holder of the equity share is entitiled to dividend right and voting right in the same proportion as the capital
paid up on such equity share bears to the total paid up equity share capital of the company. The Dividend proposed
by the Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting.

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

Note No. 16.5: For the impact on account of subsequent changes in equity share capital on earnings per share
refer note no. 36

Note No 16.6: Disclosure of Split of Shares

The shareholders in their Extraordinary General Meeting held on 22/10/2024, approved the subdivision of each
authorised and issued equity shares of face value of Rs.100 into 10 (ten) equity shares of face value of H 10 each.

Note No 16.7: Issue of fresh equity shares

During the year, the Company has completed its initial public offer (IPO) of 19,226,541 equity shares of face value of
H 10 each at an issue price of H 423 per share (including share premium of H 413 per share), comprising fresh issue of
11,352,526 equity shares aggregating to H 4,800.03 million (including an employee discount of H 40 per share) and offer
for sale of 7,874,015 equity shares by selling shareholders aggregating to H 3,330.71 million, totalling to H 8,130.74 million.
Pursuant to the IPO, the equity shares of the Company were listed on BSE Limited (BSE) and National Stock Exchange of
India Limited (NSE) on September 30, 2025.

The company had also raised from Pre-IPO placement an amount aggregating to H 1,199.97 million and issued 28,36,800
equity shares of face value of H 10 each at an issue price of H 423 per share (including share premium of H 413 per share),
fully comprising fresh issue of 28,36,800 equity shares.

Note:18.1

All the Term loans are secured against:

Primary Security:

First pari pass Charge on the entire movable and immovable fixed assets of the company including equitable/
Registered mortgage of land building both present and future along with all the term lenders.

Details of immovable properties in the form of land and building are mentioned below:

a) Land and building at Plot no C-342, C-396, C-397, C-398, C-399, C-402, C-452, C-400 and C-470 Trans Thane
Creek (TTC) Industrial Area, Turbhe, Navi Mumbai 400705.

b) Land and building at Plot no 381, Sector 57 Phase IV, Industrial Estate HSIIDC Kundli, District Haryana- 131 028.

c) At Plot bearing H No 7- 601/1/1/1, Plot No 135 & 136, Survey No 244 & 316, Block No 7 Subhash Nagar, Jeedimetla
Village, Quthbullapur Mandal Ranga Reddy District, Hyderabad - 500055, Telangana.

d) Industrial Plot at Nagpur - MIDC Plot no B-126/B-126A, Village Umri Butibori MIDC Industrial Area, Butibori, Tah.
Hingna, District Nagpur.

e) Property situated at Gala no FF-7, First Floor, Peenya lndustrial Estate, First Stage, 6^th Cross Road, Next to Shamrao
Vitthal bank, Off Tumkur Road, Yeshwanthpura, Hobli, Taluka Bangalore North, Karnataka - 560 058

f) Property situated at Plot No. 477-D Karnataka Industrial Area, Peenya 4^th Phase Industrial Area, Near Greenchef
Home Appliances Company and Shivapura Lake Yeshwanthpura Hobil Taluka Bangalore North District
Bangalore-560258

g) Plot no 483 HSIIDC sector-53, Phose-lll. EPIP lndustrial Estate, Kundli, Sonipat Tehail & Distt, Sonipat, Haryana
(add in FY 23-24)

h) Plot No 14/4 and 14/3 near Kalenahalli Government School Junction, Main Road, Village Road, Village Kalenahalli,
Urdigere Hobli, Taluka Tumkar, District Tumkuru, Karnataka - 572140 (add in FY 23-24)

Guarantee: Secured by unconditional and irrevocable personal guarantee of Mr. Pragnyat Lalwani and
Mr. Gautam Jain.

Note 18.4 - Additional disclosures:

1. The Company has borrowings from banks or financial institutions on the basis of security of current assets and
the statements of current assets filed by the Company with banks or financial institutions are in agreement with
the books of accounts.

2. The Company has utilised the borrowings for the purpose for which it was taken.

3. Charges or satisfaction of charges are registered with ROC within the statutory period, there are no charges or
satisfaction yet to be registered with ROC beyond the statutory period as at 31 March 2026

4. The Company has not been declared wilful defaulter by any bank or financial institution or Government or any
Government authority.

Note 19.1: Disclosure on Retirement Benefits as required in Indian Accounting Standard (Ind AS) 19 on "Employee
Benefits" are given below:

A. Defined Contribution Plan

The Company defined contribution plans are provident fund, employee state insurance and employees'' pension
scheme (under the provisions of the employees'' provident funds and miscellaneous provisions Act, 1952) since the
Company has no further obligation beyond making the contributions. The Company''s contribution to Provident &
Other Funds is H 17.15 million for the year ended March 31 2026 (for the year ended March 31, 2025: H 14.32 million,)
has been recognised in the Statement of Profit and Loss under the head employee benefits expense.

B. Defined Benefit Plan

(i) Gratuity

The Company''s defined benefit plans include gratuity benefit to its employees, which is funded through the
Life Insurance Corporation of India. The employees of the Company are also entitled to leave encashment
and compensated absences as per the Company''s policy.

40 Segment Reporting

Operating segments are reported in a manner consistent with internal reporting provided to the Chief Operating
Decision Maker (CODM) of the Company. The chief operating decision-maker, who is responsible for allocating
resources and assessing performance of the operating segments, has been identified as the Board of Directors that
makes strategic decisions.

Segment Reporting Disclosure

The Company is primarily engaged in the business of Security and Variable Data printing, which in the terms of Ind AS
108 on ''Operating Segments'', constitutes a single reporting business segment.

There are no material individual markets outside India and hence the same is not disclosed for geographical segments
for the segment revenues or results or assets.

For the year ended 31 March 2026, revenue from operations of 2 customer of the Company represented approximately
28% of the Company revenue from operations.

For the year ended 31 March 2025, revenue from operations of 2 customer of the Company represented approximately
29% of the Company revenue from operations.

The following table gives details in respect of contract revenues generated from the top customer and top 5 & 10
customers for the year ended:

Note:

1. 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 the obligation or a reliable estimate
of the amount cannot be made.

2. It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above
pending resolution of the respective proceedings as it is determinable only on receipt of judgements/
decisions pending with various forums/authorities.

3. The Company does not expect any reimbursements in respect of the above contingent liabilities.

4. The Company pending litigations comprise of proceedings pending with various direct tax, indirect tax and
other authorities. The Company has reviewed all its pending litigations and proceedings and has adequately
provided for where provisions are required or disclosed as contingent liabilities where applicable, in its
financial statements. The Company does not expect the outcome of these proceedings to have a materially
adverse effect on its financial statements.

5. **In F.Y 2025-26 this disputed liability as shown in Income Tax Portal is Rs. 107.77 Million (A.Y. 2010-11 is Rs.
0.37 Million, A.Y. 2016-17 is H 0.51 Million, A.Y. 2018-19 is H 0.02 Million. A.Y. 2022-23 is H 0.02 Million, A.Y. 2024-25 is
H 60.62 Million and A.Y. 2025-26 is H 46.22 Million). The said liability is mainly of TDS credit mismatches and
other numerical errors. The Company has filed rectification letters against the demand and is confident
of resolving the same, And disputed liability on Income tax portal for Seshaasai E Forms Private Limited
is H 3.51 million

d) Reason for Shortfall

The Companty has paid the shortfall amount of H 0.32 Millions on July 02, 2025.

During the year, company did not incurred any expenditure on account of corporate social responsibility with
related parties.

43 Financial instruments

Note No.43.1 Capital management

The Company manages its capital to ensure that it will be able to continue as going concern while maximising the
return to stakeholders through the optimisation of the debt and equity balance.

The capital structure of the company consists of total equity (Refer note no.16) and net debt (Refer note no.18 and 21).

The Company''s management reviews the capital structure on a regular basis. As part of this review, the management
considers the cost of capital, risks associated with each class of capital.

Note No.43.3 Fair value measurements

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

Fair value measurements are categorised into Level 1, 2, or 3 based on the degree to which the inputs to the fair value
measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which
are described as follows:

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can
access at the measurement date;

Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability,
either directly or indirectly; and

Level 3 inputs are unobservable inputs for the asset or liability.

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

The Company is of the belief that the carrying amounts of financial assets and financial liabilities measured at
amortised cost in the financial statement are a reasonable approximation of their fair values.

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

The Company has exposure to the following risks arising from financial instruments:

• Credit risk ;

• Liquidity risk ; and

• Market risk

i. Risk management framework

The Company''s activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk.
The Company''s primary risk management focus is to minimize potential adverse effects of market risk on its
financial performance. The Company''s risk management assessment and policies and processes are established
to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor
such risks and compliance with the same. Risk assessment and management policies and processes are
reviewed regularly to reflect changes in market conditions and the Company''s activities. The Board of Directors is
responsible for overseeing the Company''s risk assessment and management policies and processes.

ii. Credit risk management

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial
instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables
from customers. The Company is exposed to credit risk from its operating activities (primarily trade
receivables) and from its financing activities, including deposits with bank and other financial instruments.
The Company considers the probability of default upon initial recognition of asset and whether there has been a
significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there
is a significant increase in credit risk the Company compares the risk of a default occurring on the asset as at the
reporting date with the risk of default as at the date of initial recognition."

(a) Trade and other receivables

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each
customer. The demographics of the customer, including the default risk of the industry and country in which
the customer operates, also has an influence on credit risk assessment. 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 establishes an
allowance for doubtful debts and impairment that represents its estimate of incurred losses in respect of
trade and other receivables.

(b) Expected credit loss assessment for customers as at March 31, 2026 and March 31, 2025

Exposures to customers outstanding at the end of each reporting period are reviewed by the Company
to determine incurred and expected credit losses. Historical trends of impairment of trade receivables do
not reflect any significant credit losses. Further, management believes that the unimpaired amounts that
are past due by more than 30 days are still collectible in full, based on historical payment behaviour and
extensive analysis of customer credit risk.

(c) Cash and cash equivalents

The Company held cash and cash equivalents with credit worthy banks and financial institutions as on 31
March 2026 H 1,858.06 million (31 March 2025 H 968.21 million)

Other than trade and other receivables, the Company has no other financial assets that are past due.

(d) Loan

The Loan Consists of Loan to employees & Related Party. The company does not expect any non payment as
said loan are given to confirmed employees only of the organisation

Note No.43.5 Liquidity risk management

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The
Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet
its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risk to the
Company''s reputation.

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

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes
in market rates and prices (such as interest rates, foreign currency exchange rates) or in the price of market risk-
sensitive instruments as a result of such adverse changes in market rates and prices. Market risk is attributable to all
market risk-sensitive financial instruments, all foreign currency receivables and payables and all short term and long¬
term debt. The Company is exposed to market risk primarily related to foreign exchange rate risk, interest rate risk and
other price risk such as commodity risk.

(i) Currency risk

The fluctuation in foreign currency exchange rates may have potential impact on the profit and loss account and
equity, where any transaction references more than one currency or where assets / liabilities are denominated in
a currency other than the functional currency of the entity.

Considering the countries and economic environment in which the Company operates, its operations are subject
to risks arising from fluctuations in exchange rates in those countries. The risks primarily relate to fluctuations in
US Dollar (USD) and Euro (EUR), against the functional currencies of the Company.

(iii) Sensitivity analysis

A 10% strengthening / weakening of the respective foreign currencies with respect to functional currency of
Company would result in increase or decrease in profit or loss and equity as shown in table below. This analysis
assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast
sales and purchases. The following analysis has been worked out based on the exposures as of the date of
statements of financial position.

Note No.43.7 Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in market interest rates. The Company''s exposure to market risk for changes in interest rates relates to
variable rate borrowings from banks and related party.

46 CODE OF SOCIAL SECURITY

On November 21, 2025, the Government of India notified the four Labour Codes - 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 - consolidating 29 existing labour laws, collectively referred to as the ''New Labour Codes''. The impact of
these changes, assessed by the Company, on the basis of the information available read with the FAQs released by
Ministry of Labour & Employment , consistent with the guidance provided by the Institute of Chartered Accountants
of India, is not material and has been recognised in the standalone financial statements of the Company for the year
ended March 31, 2026. The Company continues to monitor developments on the rules to be notified by regulatory
authorities, including clarifications/ additional guidance from authorities and will continue to assess the accounting
implications basis such developments/ guidance.

47 Standalone Financial statements were approved by the board of directors in their meeting
held on 18-05-202648 Investor Education and Protection Fund

There were no amounts which were required to be transferred to the Investor Education and Protection Fund
by the Company.

49 Reclassification and regrouping

Appropriate re-groupings have been made in the standalone financial statement wherever required, by reclassification
of the corresponding items of income, expenses, assets, liabilities and cash flows, in order to bring them in line with
the accounting policies and classification as per the Standalone financial statement of the Company for the period
ended 31 March 2026 prepared in accordance with amended Schedule III of Companies Act, 2013, requirements of Ind
AS 1 and other applicable Ind AS principles.

50 The Company completed its Initial Public Offering (''IPO'') of 1,92,26,541 equity shares of face value of INR 10 each
at an issue price of INR 423 per equity share (including a share premium of INR 413 per equity share) comprising of
fresh issue of 1,13,52,526 equity shares aggregating to Rs.4,800.03 million (including an employee discount of H 40 per
share) and an offer for sale of 7874015 equity shares by selling shareholders aggregating to H 3,330.71 million, totalling
to Rs.8,130.74 million. Pursuant to the IPO, the equity shares of the Holding Company were listed on BSE Limited (BSE)
and National Stock Exchange of India Limited (NSE) on September 30, 2025.

The Company had also raised from Pre-IPO placement an amount aggregating to H 1,199.97 millions and issued
28,36,800 equity shares of face value of Rs.10 each at an issue price of H 423 per share (including share premium of
Rs.413 per share), fully comprising fresh issue of 28,36,800 equity shares.

The Company''s share of total offer expenses are estimated to be H 350.62 million (inclusive of GST). The utilisation of
the IPO proceeds in relation to fresh issue is summarised below:

51 The Company has been sanctioned working capital limits in excess of H 5 crore during the year from banks or
financial institutions on the basis of security of Stock and Trade receivables (Net off Trade Payable). For the said facility,
the Company has submitted Stock and Trade Receivble (net off Trade Payable) statement to the Bank on a monthly
basis. However, minor, immaterial discrepancies were noted due to mismatches between early bank submission
dates and subsequent processing of quarter-end accrual entries, provisions, and minor valuation differences in the
financial books.

52 Maintenance of Audit Trail (Edit Log) and Backup of Audit Trail (Edit Log)

a The Company maintains its books of account in electronic form using Tally Prime software, which has a feature of
recording audit trail (edit log). The audit trail feature has operated throughout the year for all relevant transactions
recorded in the software. During the year, no instance of tampering with the audit trail was observed, and the audit
trail has been preserved in accordance with the applicable statutory requirements for record retention. The Fixed
Assets Register relating to Property, Plant and Equipment (including Intangible Assets), payroll processing records
and inventory register are presently maintained in Microsoft Excel for operational convenience. The Company has
proactively initiated the implementation of appropriate software equipped with an audit trail (edit log) feature
for maintaining these records, with a view to further strengthening its systems and internal controls. Pending
completion and full deployment of the upgraded system, the aforesaid records continue to be maintained in
Microsoft Excel to ensure operational continuity. The audit trail (edit log) functionality will be available for these
records upon implementation and deployment of the upgraded system.

b The Company also maintains adequate backup of its books of account and other relevant records maintained in
electronic form, in compliance with Rule 3 of the Companies (Accounts) Rules, 2014. Such backups are taken on a
regular basis and are stored securely to ensure data integrity, availability, and restoration capability in the event
of system failure or data loss.

53 Balance confirmations

Confirmation letters have been sent in respect of sundry debtors / loans and advances / sundry creditors of which
certain confirmations have been received which are accordingly accounted and reconciled. The remaining balances
have been shown as per books of accounts and are subject to reconciliation adjustments, if any. In the opinion of the
Management, the realizable value of the current assets, loans and advances in the ordinary course of business will not
be less than the value at which they are stated in the balance sheet.

54 OTHER STATUTORY REQUIREMENT

The Company does not have any Benami property held in its name. No proceeding have been initiated or pending
against the Company for holding any Benami property under the benami transactions ( prohibition ) act ,1988 ( 45 of
1988 ) and rules made thereunder.

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

The Company does not have any transaction with Struck off companies

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

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 directly or indirectly lend or invest in other
persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or
Provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

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 Intermediary 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 on behalf of the Ultimate Beneficiaries:

The Company has not had 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.

The Title deeds for all the immovable property (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.(except as disclosed
in note no.2A (1)

The Company has not been declared as Wilful Defaulter by any Bank or Financial Institution or other Lender.

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

The Company has not revalued its Property, Plant and Equipment (including Right-of-use assets ) or intangible assets
or both during the year or in previous year.

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

Footnote:

(i) Current Assets = Total Current Assets ( Inventories Trade receivables Cash and cash equivalents Bank
balances other than (ii) above Loans Other Financial assets Other current assets )

(ii) Current Liabilities = Total Current Liabilities ( Borrowings Trade payables Lease Liabilities Others Financial
liabilities Provisions Current tax liabilities (Net) Other current liabilities)

(iii) Total Borrowings = Current Borrowings Non-Current Borrowings

(iv) Shareholder Equity = Total Equity ( Equity Share Capital Other Equity )

(v) Earning Available for debt service = Finance Cost Depreciation and amortization Profit/(Loss) for the year
(Excluding other comprehensive income) Provision for Doubtfull Debts Expected Credit Loss-Tax Expenses-
Interest on MSME

(vi) Finance Costs = Total of Finance cost - Interest on MSME

(vii) Net Profit after Tax = Profit/(Loss) for the year (Excluding other Comprehensive Income)

(viii) Capital employed = Total Equity Borrowings (Excluding Working Capital Loan) Lease Liabilities Deferred Tax
Liabilities (net)

1.9 Provisions, contingent liabilities and contingent assets
Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) 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 a reliable estimate can be made of the amount of the

obligation. The expense relating to a provision is presented in the statement of profit and loss.
Contingent liabilities

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

Contingent Assets

Contingent Assets are disclosed, where an inflow of economic benefits is probable.

1.10 Cash and Cash Equivalents

Cash and cash equivalents comprise cash in hand and at bank (in current accounts) and term
deposits maturing within 3 months from the date of deposit. Term deposits maturing beyond 3
months, earmarked balances with banks and deposits held as margin money or security against
Bank guarantees, LC, borrowings etc. have not been considered as Cash and Cash Equivalents.

1.11 Statement of Cash Flows

Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the
effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating
cash receipts or payments and item of income or expenses associated with investing or financing
cash flows. The cash flows from operating, investing and financing activities of the Company are
segregated.

1.12 Revenue Recognition
Revenue from Operations

The Company derives revenues primarily from Sale of Products and services including manufacturing
and trading.

Revenue is measured based on the consideration that is specified in a contract with a customer
or is expected to be received in exchange for the products or services and excludes amounts
collected on behalf of third parties. Revenue is recognized upon transfer of control of promised
products or services to customers. To recognize revenues, the Company applies the following five
step approach:

(1) Identify the contract with a customer,

(2) Identify the performance obligations in the contract,

(3) Determine the transaction price,

(4) Allocate the transaction price to the performance obligations in the contract, and

(5) Recognize revenues when a performance obligation is satisfied.

The revenue is recognised when (or as) the performance obligation is satisfied, which typically
occurs when (or as) control over the products or services is transferred to a customer.

Contract modifications are accounted for when additions, deletions or changes are approved either
to the contract scope or contract price. The accounting for modifications of contracts involves

assessing whether the products/services added to an existing contract are distinct and whether
the pricing is at the standalone selling price. Products/Services added that are not distinct are
accounted for on a cumulative catch-up basis, while those that are distinct are accounted for
prospectively, either as a separate contract, if the additional products/services are priced at the
standalone selling price, or as a termination of the existing contract and creation of a new contract
if not priced at the standalone selling price.

Revenue is recognized upon transfer of control of promised products or services to customers
in an amount that reflects the consideration the Company expect to receive in exchange for those
products or services. Revenue is disclosed net of Goods and Service Tax in the statement of profit
and loss.

The Company accounts for rebates/discounts to customers as a reduction of revenue based on
the underlying performance obligation that corresponds to the progress by the customer towards
earning the rebate/discount. The company accounts for the liability based on its estimates of future
timely receipts of the billed and unbilled revenue. If it is probable that the criteria for rebate/discount
will not be met , or if the amount thereof cannot be estimated reliably , then rebate/discount in not
recognised until the payment is probable and amount can be estimated reliably. Such rebates/
discounts are accounted as the reduction from the revenue.

Interest Income

Interest Income from a financial asset is recognized using the effective interest method. Interest on
refund of Income Tax is accounted in the year of receipt.

Other Income

Lease income is recognised in the manner mentioned in sub note1.4 above.

Difference in Exchange rates recognised as income, in the manner mentioned in sub note 1.13 below.
Bad debts recovered considered as income, in the year, the same is being recovered. Claims received
is accounted in the year of receipt.

Dividend Income is recognized when the Company''s right to receive the payment has been established.
Government grants and subsidies are accounted when there is reasonable assurance that the
Company will comply with the conditions attached to them and it is reasonably certain that the ultimate
collection will be made. Capital grants relating to specific fixed assets are reduced from the gross value
of the respective fixed assets. Revenue grants are recognised in the Statement of Profit and Loss. 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.

1.13 Foreign Exchange Transactions

Transactions in foreign currencies are translated into the functional currency of the Group at
exchange rates at the date of transactions or an average rate if the average rate approximates the
actual rate at the date of transaction.

Monetary assets and liabilities denominated in foreign currencies are translated into the
functional currency at the exchange rate at the reporting date. Foreign Exchange gains and losses
resulting from the settlement of such transactions and from the translation of monetary-assets
and liabilities denominated in foreign currency at year / period end exchange rate are generally
recognised in profit or loss.

Non-monetary assets and liabilities that are measured at fair value in a 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 foreign currency
are translated at the exchange rate at the date of transaction. Exchange differences are recognised
in the profit or loss, except exchange differences arising from the translation of qualifying cash flow
hedges to the extent hedges are effective which are recognised in Other Comprehensive Income
(OCI)

1.14 Borrowing Cost

Borrowing costs are interest and other costs (including exchange differences relating to foreign
currency borrowings to the extent that they are regarded as an adjustment to interest costs) incurred
in connection with the borrowing of funds. Borrowing costs directly attributable to acquisition or
construction of an asset which necessarily take a substantial period of time to get ready for their
intended use are capitalised as part of the cost of that asset. Other borrowing costs are recognised
as an expense in the period in which they are incurred.

(i) Commencement of capitalization

Capitalisation of borrowing cost as part of the cost of a qualifying asset shall begin on the
commencement date. The commencement date for capitalisation is the date when the entity
first meets all of the following conditions:

a. it incurs expenditures for the asset;

b. it incurs borrowing costs; and

c. it undertakes activities that are necessary to prepare the asset for its intended use or sale.

(ii) Cessation of capitalisation

Cessation of capitalisation shall happen when substantially all the activities necessary to
prepare the qualifying asset for its intended use or sale are complete.

Other borrowing costs are recognised as an expense in the period in which they are incurred.

1.15 Share Capital and Share Premium, Dividend Distribution to Equity Shareholders:

Ordinary shares are classified as equity, incremental costs directly attributable to the issue of new
shares are shown in equity as a deduction net of tax from the proceeds. Par value of the equity
share is recorded as share capital and the amount received in excess of the par value is classified
as share premium.

The Company recognizes a liability to make cash distributions to equity holders when the
distribution is authorized and the distribution is no longer at the discretion of the Company. A
distribution is authorized when it is approved by the shareholders. A corresponding amount is
recognized directly in other equity along with any tax thereon.

1.16 Earnings per share

Basic earnings per equity share is calculated by dividing the net profit or loss after tax (before
considering other comprehensive income) for the year attributable to equity shareholders of the
Company by the weighted average number of equity shares outstanding during the year.

Diluted earnings per equity share, if any, is computed by dividing the net profit or loss for the year
as adjusted for dividend, interest and other charges to expense or income relating to the dilutive
potential equity shares, by the weighted average number of equity shares and dilutive potential
equity share outstanding during the period except when the results would be anti-dilutive.

1.17 Regrouping of Previous Year''s figures

The Company has adopted the policy of regrouping certain figures for the purpose of better
presentation and/or to comply with the amended Indian Accounting Standards and Schedule III, if
any, both for the current and comparative period.

1.18 Standards issued but not yet effective

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards
under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year
ended March 31, 2024, MCA has not notified any new standards or amendments to the existing
standards applicable to the Company.