2.13 Provisions, contingent liabilities and contingent assets
Provisions

A provision is recognised in the Statement of profit and loss if, as a result of a past event, the Company has a present legal or
constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to
settle the obligation. If the effect of the time value of money is material, provisions are determined by discounting the expected
future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to
the liability. Where discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

Warranty Provision

As per the contractual terms with customers, the Company provides warranty to the customers for 18 months from date of sale or
12 months from date of installation which ever is earlier. The provision is carried at 0.25% of Turnover for such returns/rejections
on the basis of historical warranty trends in similar industry.

Contingent liabilities and contingent assets

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably
will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the
likelihood of outflow of resources is remote, no provision or disclosure is made.

Contingent assets are not recognised in the financial statements. However, contingent assets are assessed continually and if it
is reasonably certain that an inflow of economic benefits will arise, the asset and related income are recognised in the period in
which the change occurs.

Onerous contracts

A provision for onerous contracts is recognised in the Statement of profit and loss when the expected benefits to be derived by
the Company from a contract are lower than the unavoidable cost of meeting its obligations under the contract. The provision
is measured at the present value of the lower of the expected cost of terminating the contract and the expected net cost of
continuing with the contract. Before a provision is established, the Company recognises any impairment loss on the assets
associated with that contract.

Reimbursement rights

Expected reimbursements for expenditures required to settle a provision are recognised in the statement of profit and loss only
when receipt of such reimbursements is virtually certain. Such reimbursements are recognised as a separate asset in the balance
sheet, with a corresponding credit to the specific expense for which the provision has been made.

2.14 Revenue from contracts with customers

Revenue from contracts with customers is recognised when control of the goods is transferred to the customer at an amount that
reflects the consideration to which the Company expects to be entitled in exchange for those goods.

Revenue is recognised to the extent that it is probable that economic benefits will flow to the company and the revenue can be
reliably measured regardless of when the payment is being made.

Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms
of payment and excluding taxes or duties collected on behalf of the government. The Company has concluded that it is the
principal in its revenue arrangements.

Goods and Service Tax (GST) is not received by the Company on its own account and is tax collected on behalf of the government.
Accordingly, it is excluded from revenue.

Sale of products

Revenue from sale of product is recognised at the point in time when control of the asset is transferred to the customer, generally
on delivery of the product.(unless the terms of the contract are otherwise)

Generally, control is transferred upon shipment of goods to the customer or when the goods are made available to the customer,
provided transfer of title to the customer occurs and the Company has not retained any significant risks of ownership or future
obligations with respect to the goods shipped.

Revenue is measured based on transaction price, which is the fair value of the consideration received or receivable, stated net of
discounts, returns and value added tax. Transaction price is recognised based on the price specified in the contract, net of the
estimated sales incentives / discounts. In determining the transaction price for the sale of goods, the Company considers the effects
of variable consideration, the existence of significant financing components, and consideration payable to the customer (if any).

Sale of services

Service income is recognised, on an accrual basis, at agreed rate in accordance with the terms of the agreement.

Contract balances
Contract assets

A contract asset is the right to consideration in exchange for goods or services transferred to the customer. If the Company
performs by transferring goods or services to a customer before the customer pays consideration or before payment is due, a
contract asset is recognised for the earned consideration that is conditional.

Trade receivables

A trade receivable represents the Company''s right to an amount of consideration that is unconditional (i.e., only the passage of
time is required before payment of the consideration is due).

Contract liabilities

A contract liability is the obligation to transfer goods or services to a customer for which the company has received consideration
(or an amount of consideration is due) from the customer. If a customer pays consideration before the company transfers goods or
services to the customer, a contract liability is recognised when the payment is made or the payment is due (whichever is earlier).
Contract liabilities are recognised as revenue when the Company performs under the contract.

2.15 Interest Income

Interest Income mainly comprises of interest on margin money deposit with banks relating to bank guarantee and Deposits.
Interest income should be recorded using the effective interest rate (EIR). However, the amount of margin money deposits relating
to bank guarantee are purely current in nature, hence effective interest rate has not been applied. Interest is recognised using the
time-proportion method, based on rates implicit in the transactions.

2.16 Borrowing Costs

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial
period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset. All other borrowing costs are
expensed in the period in which they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection
with the borrowing of funds. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the
borrowing costs.

2.17 Tax Expenses

Tax expense consists of current and deferred tax.

Current income tax

Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation
authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted,
at the reporting date. Current income tax relating to items recognised outside the statement of profit and loss is recognised
outside the statement of profit and loss (either in OCI or in equity in correlation to the underlying transaction). Management
periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject
to interpretation and establishes provisions, where appropriate.

Deferred tax

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

Deferred tax liabilities and assets are recognised for all taxable temporary differences and deductible temporary differences.

Deferred tax assets are recognised for all deductible temporary differences to the extent that it is probable that taxable profit will
be available against which the deductible temporary differences, and the carry forward of unused tax credits can be utilised.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer
probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised.

Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become
probable that future taxable profits will allow the deferred tax asset to be recovered.

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

Deferred tax relating to items recognised outside the Statement of profit and loss is recognised outside the statement of profit
and loss (either in OCI or in equity in correlation to the underlying transaction).

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

Goods and Service Tax (GST) paid on acquisition of assets or on incurring expenses

When the tax incurred on purchase of assets or services is not recoverable from the taxation authority, the tax paid is recognised
as part of the cost of acquisition of the asset or as part of the expense item, as applicable. Otherwise, expenses and assets are
recognised net of the amount of taxes paid. The net amount of tax recoverable from, or payable to, the taxation authority is
included as part of receivables or payables in the balance sheet.

2.18 Leases

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

The Company as a lessee

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

Right-of-use assets

The Company recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is
available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and
adjusted for any remeasurement of lease liabilities.

The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments
made at or before the commencement date less any lease incentives received.

Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of
the assets. If ownership of the leased asset transfers to the Company at the end of the lease term or the cost reflects the exercise
of a purchase option, depreciation is calculated using the estimated useful life of the asset.

The right-of-use assets are also subject to impairment. Refer to the accounting policies in section of Impairment of non¬
financial assets.

Lease liabilities

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

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

Short-term leases and leases of low-value assets

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

2.19 Earnings Per Share

Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders (after deducting
preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the year.

The weighted average number of equity shares outstanding during the year is adjusted for events such as bonus issue, bonus
element in a rights issue, share split, and reverse share split (consolidation of shares) that have changed the number of equity
shares outstanding, without a corresponding change in resources.

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

2.20 Government grants

Government grants are recognised where there is reasonable assurance that the grant will be received and all attached conditions
will be complied with. When the grant relates to an expense item, it is recognised as income on a systematic basis over the
periods that the related costs, for which it is intended to compensate, are expensed. When the grant relates to an asset, it is
recognised as income in equal amounts over the expected useful life of the related asset.

2.21 Segment reporting

An operating segment is a component of the Company that engages in business activities from which it may earn revenues
and incur expenses (including revenues and expenses relating to transactions with other components of the Company), whose
operating results are regularly reviewed by the Company''s chief operating decision maker (CODM) to make decisions about
resources to be allocated to the segment and assess its performance, and for which discrete financial information is available.
Operating segments of the Company are reported in a manner consistent with the internal reporting provided to the CODM.

2.22 Significant accounting judgements, estimates, and assumption

The preparation of the financial statements in conformity with Ind AS requires management to make judgments, estimates
and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and
expenses. These estimates and associated assumptions are based on historical experiences and various other factors that are
believed to be reasonable under the circumstances. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the
period in which the estimates are revised and in any future periods affected. In particular, the areas involving critical estimates
or Judgment are:

Determining the lease term of contracts with renewal and termination options

The Company determines the lease term as the non-cancellable term of the lease, together with any periods covered by an option
to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease, if it is
reasonably certain not to be exercised. The Company has several lease contracts that include extension and termination options.
The Company applies judgement in evaluating whether it is reasonably certain to exercise the option to renew or terminate the
lease. That is, it considers all relevant factors that create an economic incentive for it to exercise either the renewal or termination.
After the commencement date, the Company reassesses the lease term if there is a significant event or change in circumstances
that is within its control and affects its ability to exercise or not to exercise the option to renew or to terminate. Furthermore,
the periods covered by termination options are included as part of the lease term only when they are reasonably certain not
to be exercised.

Property, plant and equipment

The depreciation of property, plant and equipment is derived on determining an estimate of an asset''s expected useful life and
the expected residual value at the end of its life. The useful lives and residual values of Company''s assets are determined by

management at the time of acquisition of asset and is reviewed periodically, including at each financial year end. The lives are
based on historical experience with similar assets as well as anticipation of future events, which may impact their life.

Impairment of financial and non-financial assets

Significant management judgement is required to determine the amounts of impairment loss on the financial and non financial
assets. The calculations of impairment loss are sensitive to underlying assumptions.

Tax provisions and contingencies

Significant management judgement is required to determine the amounts of tax provisions and contingencies. Significant
management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely
timing and the level of future taxable profits together with future tax planning strategies.

Defined benefit plans

The cost of the defined benefit plan and the present value of the obligation are determined using actuarial valuation. An actuarial
valuation involves various assumptions that may differ from actual developments in the future. These include the determination of
the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term
nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each
reporting date.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans operated in
India, the management considers the interest rates of government bonds where remaining maturity of such bond correspond to
expected term of defined benefit obligation.

The mortality rate is based on publicly available mortality tables. Those mortality tables tend to change only at interval in
response to demographic changes. Future salary increases and gratuity increases are based on expected future inflation rates.

Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on
quoted prices in active markets, their fair value is measured using internal valuation techniques. The inputs to these models are
taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing
fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions
about these factors could affect the reported fair value of financial instruments.

2.23 New Accounting pronouncements

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.

In May 2025, MCA notified amendments to Ind AS 21 - The Effects of Changes in Foreign Exchange Rates, applicable w.e.f. April
1, 2025. The Company has reviewed the amendment and based on its evaluation has determined that it does not have any
significant impact in its financial statements.

1. Amendment to Ind AS 1 - Classification of liabilities as current or non-current and non-current liabilities with covenants:

The amendment specifies the requirements for classifying liabilities as current or non-current in the balance sheet, and
clarifies the following:

a) An entity''s right to defer settlement of a liability for at least twelve months after the reporting period must have
substance and must exist at the end of the reporting period. The classification of a liability as current or non-current
is unaffected by the likelihood that the entity will exercise its right to defer settlement.

b) If an entity''s right to defer settlement of a liability is subject to covenants, such covenants affect whether that right
exists at the end of the reporting period only if the entity is required to comply with the covenant on or before the end
of the reporting period.

c) In case of a liability that can be settled, at the option of the counterparty, by the transfer of the entity''s own equity
instruments, such settlement terms do not affect the classification of the liability as current or non-current only if the
option is classified as an equity instrument.

These amendments have no effect on the measurement of any items in the financial statements of the Company. The
Company did not make retrospective adjustments as a result of adopting the amendments to Ind AS 1.

2. Amendment to Ind AS 7 and Ind AS 107 - Supplier Finance Arrangement:

Disclosures'' clarify the characteristics of supplier finance arrangements and require additional disclosures for such
arrangements. The disclosure requirements in the amendments are intended to assist users of financial statements in
understanding the effects of the Company is not within the scope of the OECD Pillar Two Model Rules, as Pillar Two
legislation has not yet been enacted in any of the jurisdiction in which the Company operates. Supplier finance arrangements
on an entity''s liabilities, cash flows and exposure to liquidity risk.

The Company does not have any supplier finance arrangements during the reporting period.

3. Amendment to Ind AS 12 - Pillar-Two Tax Reforms

The Company is not within the scope of the OECD Pillar Two Model Rules, as Pillar Two legislation has not yet been enacted
in the jurisdiction in which the Company operates.

4. Amendment to Ind AS 21-Lack of exchangeability

The amendments introduces requirement to assess when a currency is exchangeable into another currency and when it is not.
The amendment requires an entity to estimate the spot exchange rate when it concludes that a currency is not exchangeable
into another currency. These amendments had no effect on the financial statements of the Company.

The below amendments are notified but not yet effective amendment to Ind AS 1 ‘Presentation of Financial Statements''-
Classification of Liabilities as current or non-current and non-current liabilities with covenants:

The amendment includes specific provisions that will take effect for reporting periods beginning on or after 1 April 2026,
retrospectively, as outlined below:

a) Breach of material covenant for long-term loan arrangement on or before end of reporting period with effect that
liability becomes payable on demand as on reporting date, then it shall be classified as current liability, if lender agreed
after reporting period and before approval of financial statements to not demand payment as a consequence of breach.

b) Classify as non-current liability, if lender agreed by end of reporting period to provide grace period ending at least
12 months after reporting period within which entity can rectify the breach provided lender does not demand
immediate repayment.

c) Disclose information about the timing of settlement to understand the impact of the liability on the financial statements.
The Company does not expect this amendment to have an impact on its operations or financial statements.

Note: 3A(i) Contractual obligations

Refer to note 41 for details on contractual commitments for acquiring property, plant and equipment.

Note: 3A(ii) Property, plant and equipment pledged as security

Refer to note 13 A & 13 B for details on property, plant and equipment pledged as security.

Note:

i. There are no projects as Capital Work in Progress as at March 31, 2026 and March 31, 2025 whose completion is overdue of cost
which has exceeds in comparison to its original plan.

ii. The Capital Work in Progress includes expenditure incurred on the construction/ develepment of the manufacturing facility for
which the requisite approval has been approved from TGIIC. The manufacturing facility is currently under construction and in
progressing as per the approved plan. Accordingly, the related costs incurred upto the reporting date have been classified under
Capital work in progress pending completion and capitalisation.

Notes:

(i) . Acquisition of Standard C2C Engineering Private Limited (Formerly known as C2C Engineering Private Limited):

During the year, the Company completed the acquisition of Standard C2C Engineering Private Limited, India, on November
19, 2025, by purchasing 51% of its equity shareholding for a consideration of H 1,224.00 lakhs, thereby resulting in becoming
a subsidiary of the Company. Further, under the terms of the agreement dated November 19, 2025, the Company is obligated
to undertake a mandatory buyout of the remaining 49% equity shareholding at a minimum price of H 1,176.00 lakhs upon the
completion of six years from the date of execution of the agreement.(PV of consideration payable showing in financial statements
H764.60 Lakhs.)

The Company has made an additional investment of H 408.00 lakhs on January 21, 2026. Following this investment, the Company
continues to hold the same percentage of control, as the minority shareholder has also invested their proportionate share
corresponding to their existing ownership.

(ii) . Acquisition of business from Scigenics India Private Limited:

During the year, on September 16, 2025, the Company also acquired 51% equity shares in Standard Scigenics Private Limited,
India for a consideration of H 0.51 lakhs, thereby becoming a subsidiary of the Company. On October 31, 2025, Standard Scigenics
Private Limited, through a Business Transfer Agreement, purchased business pertaining to Manufacturing of Engineering Products
from Scigenics India Private Limited for a consideration of H 900.00 lakhs.

(iii) . During the year ended March 31, 2025, the Company has converted debenture application money into 0.01% Optionally Convertible

Debentures of S2 Engineering Industry Private Limited and invested in 0.01% Optionally Convertible Debentures of CPK Engineers
Equipment Private Limited with face value of H 1,00,000 each aggregating to H 1,100.00 Lakhs and H 1,300.00 Lakhs respectively. As
a part of IND AS 109 (Financial Instruments) adjustment, the same has been subject to fair valuation, resulting in an adjustment
of H 597.94 Lakhs and H 696.59 Lakhs respectively and the same are treated as investment in subsidiary.

(iv) . During the year ended March 31, 2024, the Company has invested in 0.01% Optionally Convertible Debentures of S2 Engineering

Industry Private Limited and Standard Flora Private Limited with face value of H 1,00,000 each aggregating to H 4,098.00 Lakhs
and H2,700.00 Lakhs respectively. As a part of IND AS 109 adjustment, the same has been subject to fair valuation, resulting in an
adjustment of H 2,227.59 Lakhs and H1,467.67 Lakhs respectively and the same are treated as investment in subsidiary.

(v) . During the year ended March 31, 2022, the Company had invested in 0.01% Redeemable Non- Convertible Preference Shares of S2

Engineering Industry Private Limited with face value of H 10 each aggregating to H 1,390.00 Lakhs. As a part of IND AS transition,
the same has been subject to fair valuation, resulting in an adjustment of H 977.97 Lakhs and treated as investment in subsidiary.

(vi) . During the year ended March 31, 2026, the Company had invested in 0.01% Optionally Convertible Debentures of Standatd

Scigenics Private Limited with face value of H 1,00,000 each aggregating to H 1,108.00 Lakhs. As a part of IND AS transition, the
same has been subject to fair valuation, resulting in an adjustment of H 577.73 Lakhs and treated as investment in subsidiary.

(vii) . The Company has provided guarantee with respect to the cash credits availed by S2 Engineering Industry Private Limited,

Standard C2C Engineering Private Limited, Standard Scigenics Private Limited and CPK Engineers Equipment Private Limited.
The financial guarantee contract is initially recognised at fair value. The fair value of the guarantee is the present value of the
difference between the net contractual cash flows required under the loan, and the net contractual cash flows that would have
been required without the guarantee.

During the year ended March 31, 2026, the Company has advanced a net loan amounting to H 571.95 lakhs to its sudsidiary company.
The loan carries an interest rate of 8.5% per annum, with a tenure of five years, unless otherwise mutually agreed. The total outstanding
loan balance as at March 31, 2026 amounts to H 7,886.24 lakhs.

During the year ended March 31, 2025, the Company has converted debenture application money into 0.01% Optionally Convertible
Debentures of S2 Engineering Industry Private Limited and invested in 0.01% Optionally Convertible Debentures of CPK Engineers
Equipment Private Limited with face value of H 1,00,000 each aggregating to H 1,100.00 Lakhs and H 1,300.00 Lakhs respectively. As a
part of IND AS 109 adjustment, the same has been subject to fair valuation, resulting in an adjustment of H 584.23 Lakhs (March 31,
2025:539.84 Lakhs) and H 689.76 Lakhs (March 31, 2025: H638.83 Lakhs) (including interest) respectively and the same are treated as
loan to subsidiary.

During the year ended March 31, 2024, the Company has invested in 0.01% Optionally Convertible Debentures of S2 Engineering
Industries Private Limited and Standard Flora Private Limited with face value of H 1,00,000 each aggregating to H 4,098.00 Lakhs
and H2,700.00 Lakhs respectively. As a part of IND AS 109 adjustment, the same has been subject to fair valuation, resulting in an
adjustment of H2,825.82 Lakhs (March 31, 2025: H 2,072.90 Lakhs) and H1,508.33 Lakhs (March 31, 2025: H1,394.59 Lakhs) (including
interest) respectively and the same are treated as loan to subsidiary.

During the year ended March 31, 2026, the Company has invested in 0.01% Optionally Convertible Debentures of Standard Scigenics
Private Limited with face value of H 1,00,000 each aggregating to H 1,108 Lakhs respectively. As a part of IND AS 109 adjustment, the
same has been subject to fair valuation, resulting in an adjustment of H542.46 Lakhs (including interest) respectively and the same are
treated as loan to subsidiary.

At the end of the financial year there is an outstanding loan amount of H 207.42 Lakhs receivable from Standard Flora Private Limited
which is repayable on demand, which carries an interest rate of 9.00%

1) The Company has issued 9 fully paid up bonus shares of H 10/- each for every 1 existing shares (Total shares issued
16,34,71,068) out of its free reserves pursuant to the board meeting held on June 03, 2024.

2) The Company has offered and issued 28,57,142 fully paid up equity shares of face value H 10/- each at a premium of
H 130/- per share aggregating to H 4,000.00 Lakhs through private placement cum preferential basis to Amansa Investments
Limited, Mauritius,Pursunat to the Board of Directors meeting held on December 16, 2024.

3) The Company has completed an Initial Public offer (""IPO"") of 2,92,89,367 Equity Shares at the face value of H10/- each at
an issue price of H140/- per Equity share, comprising offer for sale of 1,42,89,367 shares by selling shareholders and a fresh
issue of 1,50,00,000 shares aggregating H 41,005.11 lakhs. The Equity Shares of the Company were listed on Bombay Stock
Exchange Limited (""BSE"") and National Stock Exchange of India Limited (""NSE"") on January 13, 2025.

i) (a) Indian Rupee term loans amounting to H 25.11 Lakhs carrying interest rate of 8.10% per annum and repayable on a monthly

basis till November 2028.

(b) Indian Rupee term loans amounting to H 3.45 Lakhs at March 31, 2025 carrying interest rate ranging from 7.25% per annum
to 9.50% per annum repayable on a monthly basis till March 2026.

ii) All the facilities from banks (Term loans and Cash credit) are secured by exclusive charge on all the unencumbered Property, plant
and equipment and current assets (Inventories and Trade receivables) of the Company.

iii) All the loans are secured by Paripassu charge on Plot no 43 to 48,50 to 54,Tech park, IDA Nacharam, Telangana, registered in the
name of S2 Engineering Services.

iv) All the loans been guaranteed by the corporate guarantee of S2 Engineering Services and the personal guarantee of the following
directors unconditionally and irrevocably:

- Kandula Krishna Veni, Kudaravalli Punna Rao, Kandula Nageshwara Rao, Katragadda Venkata Shiva Prasad, Katragadda
Venkata Mohana Rao and Kandula Rama Krishna

Based on the information available with the Company, there are no outstanding dues and payments made to any supplier of goods
and services beyond the specified period under Micro, Small and Medium Enterprises Development Act, 2006 [MSMED Act]. There is no
interest payable or paid to any suppliers under the said Act for the year ended March 31, 2026.

Disclosure under the Micro, Small and Medium Enterprises Development Act, 2006

The Company has certain dues to suppliers registered under Micro, Small and Medium Enterprises Development Act, 2006 (‘MSMED
Act''). The disclosures pursuant to the said MSMED Act are as follows:

Segment information

The Managing Director of the Company has been designated as the Chief Operating Decision Maker (CODM). In the opinion of the
CODM, the Company has only one operating segment i.e., is engaged in manufacturing and selling of glass lined reactors, receivers
and storage tanks and Company is specialized in providing the turnkey solutions for the pharmaceutical Industry sector. Hence, the
same becomes the reportable segment for the Company. Accordingly, disclosure of segment information as prescribed in the Indian
Accounting Standard 108 "Operating segments” is not applicable.

Note: 32
Employee benefits
Defined Contribution Plan:

Contributions were made to provident fund and employee state insurance in India for the employees of the Company as per the
regulations. These contributions are made to registered funds administered by the Government of India. The obligation of the Company
is limited to the amount contributed and it has no further contractual nor any other constructive obligation.

Defined Benefit Plan:

In accordance with applicable laws, the Company has a defined benefit plan which provides for gratuity payments (the "Gratuity Plan”)
and covers certain categories of employees in India. The Gratuity Plan provides a lump sum gratuity payment to eligible employees at
retirement or termination of their employment. The amount of the payment is based on the respective employee''s last drawn salary
and the years of employment with the Company. Liabilities in respect of the Gratuity Plan are determined by an actuarial valuation
and plan is funded.

Compensated Absences

The Company provides for accumulation of compensated absences by certain categories of its employees. These employees can carry
forward a portion of the unutilized compensated absences and utilize them in future periods or receive cash in lieu thereof as per the
Company''s policy. The Company records a liability for compensated absences in the period in which the employee renders the services
that increases this entitlement. The total liability recorded by the Company towards this obligation was H37.39 Lakhs as at March 31,
2026 (H31.44 Lakhs as at March 31, 2025).

Financial instruments and fair value

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

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

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

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

There has been no transfer between levels during the year. The fair values of derivatives are based on derived mark-to-market values.
The management has assessed that the carrying values of financial assets and financial liabilities for which fair values are disclosed,
reasonably approximate their fair values because these instruments have short-term maturities.

Borrowings include Indian currency wherein interest rates are linked to benchmark rates (Marginal Cost of Lending Rates/Prime Lending
Rates) of respective lenders. These benchmark rates are determined based on cost of funds of the lenders, as well as, market rates. The
benchmark rates are periodically revised by the lenders to reflect prevalent market conditions. Accordingly, effective cost of debt for
borrowings at any point of time is in line with the prevalent market rates. Due to these reasons, management is of the opinion that they
can achieve refinancing, if required, at similar cost of debt, as current effective interest rates. Hence, the discounting rate for calculating
the fair value of Borrowings has been taken in line with the current cost of debt.

Note 36

Financial risk management objectives and policies

The Company''s principal financial liabilities comprise borrowings, trade and other payables. The main purpose of these financial
liabilities is to finance the Company''s operations. The Company''s principal financial assets include investments, trade and other
receivables, cash and cash equivalents, bank balances, security deposits and derivatives that are out of regular business operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company''s senior management oversees the management of
these risks. The Company''s risk management is carried out by a treasury department under policies approved by the Board of Directors.
The Board of Directors provides written principles for overall risk management, as well as policies covering specific areas, such as
foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and
investment of excess liquidity.

(a) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument that will fluctuate because of changes in
market prices. Market risk comprises three types of risk i.e. interest rate risk, currency risk and other price risk, such as commodity
risk. Financial instruments affected by market risk include borrowings, derivatives financial instruments and trade payables.

i. Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of the Company''s financial instruments will fluctuate
because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rate relates
primarily to the Company''s borrowings with floating interest rates. The following table demonstrates the sensitivity to a

ii. Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in
foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the
Company''s foreign currency borrowings and trade payables. The summary of derivative instruments and unhedged foreign
currency exposure is as below:

Note: 36 (Contd..)

(b) Credit risk

Credit risk is the risk of loss that may arise on outstanding financial instruments if a counterparty default on its obligations. The
Company''s exposure to credit risk arises majorly from trade and other receivables. Other financial assets like security deposits and
bank deposits are mostly with government authorities and scheduled banks and hence, the Company does not expect any credit
risk with respect to these financial assets.

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.

Investments

The Company limits its exposure to credit risk by generally investing in liquid securities and only with counterparties that have a
good credit rating. The Company does not expect any losses from non-performance by these counter-parties, and does not have
any significant concentration of exposures to specific industry sectors or specific country risks.

Details of financial assets - not due, past due and impaired

None of the Company''s cash equivalents, including term deposits with banks, were past due or impaired as of March 31, 2025.
The Company''s credit period for trade and other receivables payable by its customers generally ranges from 30-90 days.

(c) Liquidity risk

The Company''s objective is to maintain optimum levels of liquidity to meet its cash and collateral requirements at all times. The Company
relies on a mix of borrowings and excess operating cash flows to meet its needs for funds. The current committed lines of credit are sufficient
to meet its short to medium/long term expansion needs. The Company monitors rolling forecasts of its liquidity requirements to ensure it
has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all
times so that the Company does not breach borrowing limits or covenants (where applicable) on any of its borrowing facilities.

Explanations for Change in ratio by 25% or more in absolute terms

Current ratio - the change is attributable to decrease in liquid working capital due to increase in trade payables and advances
from customers.

Debt Service Coverage ratio - the change is due to increase in profit and decrease in credit facilities outstanding as at balance sheet date.

Net Capital Turnover Ratio - the change is due to increase in revenue and decrease in the net working capital due to increase in trade
payables and advances from customers.

Return on Investment - Decrease in ROI is primarily due to reduced profitability relative to the level of investments made during the period.

Other statutory information

(i) The Company has been allotted land by TGIIC for setting up manufacturing facility. The agreement is entered into with the
authority and possession obtained. Pursuant to the terms and conditions the registration of the land in the name of the Company
would be made once the facility commences commercial operations. Also refer foot note to the Note 3A.

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

(iii) The Company does not have any transactions with companies struck off under the Act.

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

(v) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

(vi) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

(vii) Loans or Advances in the nature of loans are granted to promoters, directors, KMPs and the related parties (as defined under Act),
either severally or jointly with any other person, that are:

(viii) Utilisation of Borrowed funds and share premium:

i) 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 Company (Ultimate Beneficiaries) or

(b) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries."

ii) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the
understanding (whether recorded in writing or otherwise) that the Group 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."

(ix) The Company does not have any 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).

(x) The Company has not revalued its Property Plant and Equipment and Intangible assets during the year.

(xi) Quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in agreement with
the books of accounts.

(xii) 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.

(xiii) The Company has not entered into any scheme of arrangement under the Act.

(xiv) The Company is not a Core Investment Company (CIC) as defined in the regulations made by the Reserve Bank of India and the
Group does not have any CICs, which are part of the Group.

Note: 40

Capital Management

For the purpose of the Company''s capital management, capital includes issued equity capital, convertible preference shares, securities
premium and all other equity reserves attributable to the equity holders of the parent. The primary objective of the Company''s capital
management is to maximise the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements
of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders,
return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided
by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings, less cash and cash
equivalents, excluding discontinued operations

(b) Contingent liabilities

The Company creates a provision when there is present obligation as a result of a past event that probably requires an outflow
of resources, and a reliable estimate can be made of the amount of 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.

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that probably will not
require an outflow of resources or where a reliable estimate of the obligation cannot be made.

Contingent assets are neither recorded nor disclosed in the financial statements.

During the financial year 2019-20 (Assessment Year 2020-21), the Company has been subject to reassessment proceedings
initiated by the Income Tax Department under Sections 147 read with 144B of the Income-tax Act, 1961, based on information
received from a search and seizure operation conducted on certain entities belonging to the Hetero Group.

Based on legal advice and internal assessment, the management believes that the Company has a strong case on merits and
that the addition made by the AO is not sustainable in law. Accordingly, the Company intends to contest the matter before the
appropriate appellate authorities.

Pending final resolution of the matter, the Company has disclosed the above as a contingent liability, and no provision has been
made in the financial statements, as the likelihood of outflow of economic resources is not considered probable at this stage.

Note: 42

Leases:

The Company has lease contracts for buildings. The leases generally have lease terms between 3 to 5 years. The Company''s obligations
under its leases are secured by the lessor''s title to the leased assets. Generally, the Company is restricted from assigning and sub¬
leasing the leased assets. There lease contracts that include extension and termination options, which are further discussed below.

The Company also has certain leases with lease terms of 12 months or less and leases with low value. The Company applies the ‘short¬
term lease'' and ‘lease of low-value assets'' recognition exemptions for these leases.

Refer Note 3C for details of carrying amounts of right-of-use assets recognised and the movements during the year. Set out below are
the carrying amounts of lease liabilities (included under interest-bearing borrowings) and the movements during the year:

The Company had total cash outflows for leases of H 300.52 Lakhs (Previous year: H 277.83 Lakhs).

The Company has several lease contracts that include extension and termination options. These options are negotiated by management
to provide flexibility in managing the leased-asset portfolio and align with the Company''s business needs. Management exercises
significant judgement in determining whether these extension and termination options are reasonably certain to be exercised. The
effective interest rate for lease liabilities is 8.47%, with maturity between 2028-29.

Note: 43

The Company had received H 23,224.50 Lakhs in the escrow account (net off estimated offer expenses H 1,775.50 Lakhs) from the
proceeds of fresh issue of equity shares through Initial Public Offer which includes pre- IPO Proceeds of H 3,882.00 Lakhs net off offer
expenses of H118.00 Lakhs. Further, the fund raised from Offer for Sale was remitted to the selling shareholders (net of estimated offer
expenses borne/to be borne by selling shareholders). During the year, the Company has reversed, it''s estimated IPO expenses to the
extent of H 121.69 Lakhs (net of Goods and Service Tax) and amount has been received from monitoring account. Such amount has
been accounted under

The Government of India has consolidated 29 existing labour legislations into a unified framework comprising four labour codes viz
the Code on Wages, 2019, the Code on Social Security, 2020, the Industrial Relations Code, 2020, and the Occupational Safety, Health
and Working Conditions Code, 2020 (collectively referred to as the "Codes”).The Codes have been made effective from November 21,
2025. The Ministry of Labour & Employment published draft Central Rules and FAQs to enable assessment of the financial impact due
to changes in regulations.

The incremental impact of these changes, assessed by the Company, on the basis of the information available, consistent with the
guidance provided by the Institute of Chartered Accountants of India, is not material and has been recognised in the standalone
financial results of the Company for the quarter and year ended March 31, 2026. Upon notification of the related Rules to the New
Labour Codes by the Government and any further clarification from the Government on other aspects of the New Labour Codes, the
Company will evaluate and account for additional impact if any, in subsequent periods.

Note: 45

The Company has received in-principle approval on February 03, 2026 from NSE Limited and BSE Limited for listing up to a
maximum of 18,16,345 equity shares of H10/- each of Standard Engineering Technology Limited to be allotted under Employee Stock
Option Scheme 2024.

Note: 46

Previous year figures have been regrouped/re-classified wherever necessary, to conform to current year''s classification.

2.13 Provisions, contingent liabilities and contingent assets

Provisions

A provision is recognised in the Statement of profit and loss if, as a result of a past event, the Company has a present
legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits
will be required to settle the obligation. If the effect of the time value of money is material, provisions are determined
by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time
value of money and the risks specific to the liability. Where discounting is used, the increase in the provision due to the
passage of time is recognised as a finance cost.

Contingent liabilities and contingent assets

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but
probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect
of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

Contingent assets are not recognised in the financial statements. However, contingent assets are assessed continually
and if it is reasonably certain that an inflow of economic benefits will arise, the asset and related income are recognised
in the period in which the change occurs.

Onerous contracts

A provision for onerous contracts is recognised in the Statement of profit and loss when the expected benefits to be
derived by the Company from a contract are lower than the unavoidable cost of meeting its obligations under the
contract. The provision is measured at the present value of the lower of the expected cost of terminating the contract
and the expected net cost of continuing with the contract. Before a provision is established, the Company recognises any
impairment loss on the assets associated with that contract.

Reimbursement rights

Expected reimbursements for expenditures required to settle a provision are recognised in the statement of profit and
loss only when receipt of such reimbursements is virtually certain. Such reimbursements are recognised as a separate
asset in the balance sheet, with a corresponding credit to the specific expense for which the provision has been made.

2.14 Revenue from contracts with customers

Revenue from contracts with customers is recognised when control of the goods is transferred to the customer at an
amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods.

Revenue is recognised to the extent that it is probable that economic benefits will flow to the company and the revenue
can be reliably measured regardless of when the payment is being made.

Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually
defined terms of payment and excluding taxes or duties collected on behalf of the government. The Company has
concluded that it is the principal in its revenue arrangements.

Goods and Service Tax (GST) is not received by the Company on its own account and is tax collected on behalf of the
government. Accordingly, it is excluded from revenue.

Sale of products

Revenue from sale of product is recognised at the point in time when control of the asset is transferred to the customer,
generally on delivery of the product.(unless the terms of the contract are otherwise)

Generally, control is transferred upon shipment of goods to the customer or when the goods are made available to the
customer, provided transfer of title to the customer occurs and the Company has not retained any significant risks of
ownership or future obligations with respect to the goods shipped.

Revenue is measured based on transaction price, which is the fair value of the consideration received or receivable,
stated net of discounts, returns and value added tax. Transaction price is recognised based on the price specified in the
contract, net of the estimated sales incentives / discounts. In determining the transaction price for the sale of goods,
the Company considers the effects of variable consideration, the existence of significant financing components, and
consideration payable to the customer (if any).

Sale of services

Service income is recognised, on an accrual basis, at agreed rate in accordance with the terms of the agreement.

Contract balances

Contract assets

A contract asset is the right to consideration in exchange for goods or services transferred to the customer. If the
Company performs by transferring goods or services to a customer before the customer pays consideration or before
payment is due, a contract asset is recognised for the earned consideration that is conditional.

Trade receivables

A trade receivable represents the Company’s right to an amount of consideration that is unconditional (i.e., only the
passage of time is required before payment of the consideration is due).

Contract liabilities

A contract liability is the obligation to transfer goods or services to a customer for which the company has received
consideration (or an amount of consideration is due) from the customer. If a customer pays consideration before the
company transfers goods or services to the customer, a contract liability is recognised when the payment is made or the
payment is due (whichever is earlier). Contract liabilities are recognised as revenue when the Company performs under
the contract.

2.15 Interest Income

Interest Income mainly comprises of interest on margin money deposit with banks relating to bank guarantee and
Deposits. Interest income should be recorded using the effective interest rate (EIR). However, the amount of margin
money deposits relating to bank guarantee are purely current in nature, hence effective interest rate has not been
applied. Interest is recognised using the time-proportion method, based on rates implicit in the transactions.

2.16 Borrowing Costs

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a
substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset. All
other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and other costs
that an entity incurs in connection with the borrowing of funds. Borrowing cost also includes exchange differences to the
extent regarded as an adjustment to the borrowing costs.

2.17 Tax Expenses

Tax expense consists of current and deferred tax.

Current income tax

Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the
taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively
enacted, at the reporting date. Current income tax relating to items recognised outside the statement of profit and
loss is recognised outside the statement of profit and loss (either in OCI or in equity in correlation to the underlying
transaction). Management periodically evaluates positions taken in the tax returns with respect to situations in which
applicable tax regulations are subject to interpretation and establishes provisions, where appropriate.

Deferred tax

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

Deferred tax liabilities and assets are recognised for all taxable temporary differences and deductible temporary differences.

Deferred tax assets are recognised for all deductible temporary differences to the extent that it is probable that taxable
profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits
can be utilised.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no
longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised.

Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has
become probable that future taxable profits will allow the deferred tax asset to be recovered.

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

Deferred tax relating to items recognised outside the Statement of profit and loss is recognised outside the statement of
profit and loss (either in OCI or in equity in correlation to the underlying transaction).

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

Goods and Service Tax (GST) paid on acquisition of assets or on incurring expenses

When the tax incurred on purchase of assets or services is not recoverable from the taxation authority, the tax paid
is recognised as part of the cost of acquisition of the asset or as part of the expense item, as applicable. Otherwise,
expenses and assets are recognised net of the amount of taxes paid. The net amount of tax recoverable from, or payable
to, the taxation authority is included as part of receivables or payables in the balance sheet.

2.18 Leases

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

The Company as a lessee

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

Right-of-use assets

The Company recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset
is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment
losses, and adjusted for any remeasurement of lease liabilities.

The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease
payments made at or before the commencement date less any lease incentives received.

Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful
lives of the assets. If ownership of the leased asset transfers to the Company at the end of the lease term or the cost
reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset.

The right-of-use assets are also subject to impairment. Refer to the accounting policies in section of Impairment of non¬
financial assets.

Lease liabilities

At the commencement date of the lease, the Company recognises lease liabilities measured at the present value of
lease payments to be made over the lease term. The lease payments include fixed payments (including in-substance
fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and
amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of
a purchase option reasonably certain to be exercised by the Company and payments of penalties for terminating the
lease, if the lease term reflects the variable lease payments that do not depend on an index or a rate are recognised as

expenses (unless they are incurred to produce inventories) in the period in which the event or condition that triggers the
payment occurs.

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

Short-term leases and leases of low-value assets

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

2.19 Earnings Per Share

Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders
(after deducting preference dividends and attributable taxes) by the weighted average number of equity shares
outstanding during the year.

The weighted average number of equity shares outstanding during the year is adjusted for events such as bonus issue,
bonus element in a rights issue, share split, and reverse share split (consolidation of shares) that have changed the
number of equity shares outstanding, without a corresponding change in resources.

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

2.20 Government grants

Government grants are recognised where there is reasonable assurance that the grant will be received and all attached
conditions will be complied with. When the grant relates to an expense item, it is recognised as income on a systematic
basis over the periods that the related costs, for which it is intended to compensate, are expensed. When the grant
relates to an asset, it is recognised as income in equal amounts over the expected useful life of the related asset.

2.21 Segment reporting

An operating segment is a component of the Company that engages in business activities from which it may earn
revenues and incur expenses (including revenues and expenses relating to transactions with other components of the
Company), whose operating results are regularly reviewed by the Company’s chief operating decision maker (CODM)
to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete
financial information is available. Operating segments of the Company are reported in a manner consistent with the
internal reporting provided to the CODM.

2.22 Significant accounting Judgements, estimates, and assumption

The preparation of the financial statements in conformity with Ind AS requires management to make judgments,
estimates and assumptions that affect the application of accounting policies and the reported amounts of assets,
liabilities, income and expenses. These estimates and associated assumptions are based on historical experiences
and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from
these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimates are revised and in any future periods affected. In particular, the areas
involving critical estimates or Judgment are:

Determining the lease term of contracts with renewal and termination options

The Company determines the lease term as the non-cancellable term of the lease, together with any periods covered by
an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate
the lease, if it is reasonably certain not to be exercised. The Company has several lease contracts that include extension
and termination options. The Company applies judgement in evaluating whether it is reasonably certain to exercise the
option to renew or terminate the lease. That is, it considers all relevant factors that create an economic incentive for it
to exercise either the renewal or termination. After the commencement date, the Company reassesses the lease term if
there is a significant event or change in circumstances that is within its control and affects its ability to exercise or not
to exercise the option to renew or to terminate. Furthermore, the periods covered by termination options are included as
part of the lease term only when they are reasonably certain not to be exercised.

Property, plant and equipment

The depreciation of property, plant and equipment is derived on determining an estimate of an asset’s expected useful
life and the expected residual value at the end of its life. The useful lives and residual values of Company’s assets are
determined by management at the time of acquisition of asset and is reviewed periodically, including at each financial
year end. The lives are based on historical experience with similar assets as well as anticipation of future events, which
may impact their life.

Impairment of financial and non-financial assets

Significant management judgement is required to determine the amounts of impairment loss on the financial and non
financial assets. The calculations of impairment loss are sensitive to underlying assumptions.

Tax provisions and contingencies

Significant management judgement is required to determine the amounts of tax provisions and contingencies. Significant
management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon
the likely timing and the level of future taxable profits together with future tax planning strategies.

Defined benefit plans

The cost of the defined benefit plan and the present value of the obligation are determined using actuarial valuation. An
actuarial valuation involves various assumptions that may differ from actual developments in the future. These include
the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in
the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions.
All assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans
operated in India, the management considers the interest rates of government bonds where remaining maturity of such
bond correspond to expected term of defined benefit obligation.

The mortality rate is based on publicly available mortality tables. Those mortality tables tend to change only at interval
in response to demographic changes. Future salary increases and gratuity increases are based on expected future
inflation rates.

Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured
based on quoted prices in active markets, their fair value is measured using internal valuation techniques. The inputs to
these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement
is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and
volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.

2.23 New Accounting pronouncements

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, 2025, MCA has not
notified any new standards or amendments to the existing standards applicable to the Company.

During the year ended March 31, 2025, the Company has converted debenture application money into 0.01% Optionally
Convertible Debentures of S2 Engineering Industry Private Limited and invested in 0.01% Optionally Convertible Debentures of
CPK Engineers Equipment Private Limited with face value of H1,00,000 each aggregating to H1,100.00 Lakhs and H1,300.00 Lakhs
respectively. As a part of IND AS 109 (Financial Instruments) adjustment, the same has been subject to fair valuation, resulting
in an adjustment of H597.94 Lakhs and H696.59 Lakhs respectively and the same are treated as investment in subsidiary.

During the year ended March 31, 2024, the Company has invested in 0.01% Optionally Convertible Debentures of S2 Engineering
Industry Private Limited and Standard Flora Private Limited with face value of H1,00,000 each aggregating to H4,098.00 Lakhs
and H2,700.00 Lakhs respectively. As a part of IND AS 109 adjustment, the same has been subject to fair valuation, resulting
in an adjustment of H2,227.59 Lakhs and H1,467.67 Lakhs respectively and the same are treated as investment in subsidiary.

During the year ended March 31, 2022, the Company had invested in 0.01% Redeemable Non- Convertible Preference Shares
of S2 Engineering Industry Private Limited with face value of H10 each aggregating to H1,390.00 Lakhs. As a part of IND AS
transition, the same has been subject to fair valuation, resulting in an adjustment of H977.97 Lakhs and treated as investment
in subsidiary.

The Company has provided guarantee with respect to the cash credits availed by S2 Engineering Industry Private Limited and
CPK Engineers Equipment Private Limited. The financial guarantee contract is initially recognised at fair value. The fair value
of the guarantee is the present value of the difference between the net contractual cash flows required under the loan, and the
net contractual cash flows that would have been required without the guarantee.

i) Indian Rupee term loans amounting to H3.45 Lakhs(March 31, 2024: H204.39 Lakhs) carrying interest rate ranging from
7.25% per annum to 9.50% per annum repayable on a monthly basis till March 2026.

ii) All the facilities from banks ( Term loans and Cash credit ) are secured by exclusive charge on all the unencumbered
Property, plant and equipment and current assets (Inventories and Trade receivables) of the Company.

iii) Further, all the loans are secured by Paripassu charge on Plot no 43 to 48,50 to 54,Tech park, IDA Nacharam, Telangana,
registered in the name of S2 Engineering Services.

iv) Further, all the loans has been guaranteed by the corporate guarantee of S2 Engineering Services and the personal
guarantee of the following directors unconditionally and irrevocably :

- Kandula Krishna Veni , Kudaravalli Punna Rao, Kandula Nageshwara Rao, Katragadda Venkata Shiva Prasad,
Katragadda Venkata Mohan Rao and Kandula Rama Krishna

Note: 34

Segment information

The Managing Director of the Company has been designated as the Chief Operating Decision Maker (CODM). In the opinion of
the CODM, the Company has only one operating segment i.e., is engaged in manufacturing and selling of glass lined reactors,
receivers and storage tanks and Company is specialized in providing the turnkey solutions for the pharmaceutical Industry
sector. Hence, the same becomes the reportable segment for the Company. Accordingly, disclosure of segment information as
prescribed in the Indian Accounting Standard 108 “Operating segments” is not applicable.

Note: 35

Employee benefits

Defined Contribution Plan:

Contributions were made to provident fund and employee state insurance in India for the employees of the Company as per
the regulations. These contributions are made to registered funds administered by the Government of India. The obligation
of the Company is limited to the amount contributed and it has no further contractual nor any other constructive obligation.

Note: 35 (Contd.)

Compensated Absences

The Company provides for accumulation of compensated absences by certain categories of its employees. These employees
can carry forward a portion of the unutilized compensated absences and utilize them in future periods or receive cash in
lieu thereof as per the Company’s policy. The Company records a liability for compensated absences in the period in which
the employee renders the services that increases this entitlement. The total liability recorded by the Company towards this
obligation was H31.44 Lakhs as at March 31, 2025 (H23.55 Lakhs as at March 31, 2024).

Note: 39

Financial risk management objectives and policies

The Company’s principal financial liabilities comprise borrowings, trade and other payables. The main purpose of these
financial liabilities is to finance the Company’s operations. The Company’s principal financial assets include investments,
trade and other receivables, cash and cash equivalents, bank balances, security deposits and derivatives that are out of
regular business operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees the
management of these risks. The Company’s risk management is carried out by a treasury department under policies approved
by the Board of Directors. The Board of Directors provides written principles for overall risk management, as well as policies
covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and
non-derivative financial instruments, and investment of excess liquidity.

(a) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument that will fluctuate because of
changes in market prices. Market risk comprises three types of risk i.e. interest rate risk, currency risk and other price
risk, such as commodity risk. Financial instruments affected by market risk include borrowings, derivatives financial
instruments and trade payables.

i. Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of the Company’s financial instruments will fluctuate
because of changes in market interest rates. The Company’s exposure to the risk of changes in market interest
rate relates primarily to the Company’s borrowings with floating interest rates. The following table demonstrates
the sensitivity to a reasonably possible change in interest rates on borrowings affected. With all other variables
held constant, the Company’s Interest Expense is affected through the impact on floating rate borrowings, without
considering impact of derivatives not designated as hedges, as follows:

(b) Credit risk

Credit risk is the risk of loss that may arise on outstanding financial instruments if a counterparty default on its obligations.
The Company’s exposure to credit risk arises majorly from trade and other receivables. Other financial assets like security
deposits and bank deposits are mostly with government authorities and scheduled banks and hence, the Company does
not expect any credit risk with respect to these financial assets.

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.

Investments

The Company limits its exposure to credit risk by generally investing in liquid securities and only with counterparties that
have a good credit rating. The Company does not expect any losses from non-performance by these counter-parties, and
does not have any significant concentration of exposures to specific industry sectors or specific country risks.

Details of financial assets - not due, past due and impaired

None of the Company’s cash equivalents, including term deposits with banks, were past due or impaired as of March
31, 2025. The Company’s credit period for trade and other receivables payable by its customers generally ranges from
30-90 days.

(c) Liquidity risk

The Company’s objective is to maintain optimum levels of liquidity to meet its cash and collateral requirements at all
times. The Company relies on a mix of borrowings and excess operating cash flows to meet its needs for funds. The current
committed lines of credit are sufficient to meet its short to medium/long term expansion needs. The Company monitors
rolling forecasts of its liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining
sufficient headroom on its undrawn committed borrowing facilities at all times so that the Company does not breach
borrowing limits or covenants (where applicable) on any of its borrowing facilities.

Note: 42

Other statutory information

(i) The Company has been allotted land by TSIIC for setting up manufacturing facility. The agreement is entered into with
the authority and possession obtained. Pursuant to the terms and conditions the registration of the land in the name of
the Company would be made once the facility commences commercial operations. Also refer foot note to the Note 3A.

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

(iii) The Company does not have any transactions with companies struck off under the Act.

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

(v) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

(viii) Utilisation of Borrowed funds and share premium:

i) 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 Company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

ii) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party)
with the understanding (whether recorded in writing or otherwise) that the Group 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.

(ix) The Company does not have any 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).

(x) The Company has not revalued its Property Plant and Equipment and Intangible assets during the year.

(xi) Quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in agreement
with the books of accounts.

(xii) 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.

(xiii) The Company has not entered into any scheme of arrangement under the Act.

(xiv) The Company is not a Core Investment Company (CIC) as defined in the regulations made by the Reserve Bank of India
and the Group does not have any CICs, which are part of the Group.

(xv) The Company uses an accounting software, Tally, for maintaining its books of account during the year ended March 31,
2025, which has a feature of recording audit trail (edit log) facility, and the same has been enabled and operated through
out the year for all the relevant transactions recorded in the accounting software.

Note: 43

Capital Management

For the purpose of the Company’s capital management, capital includes issued equity capital, convertible preference shares,
securities premium and all other equity reserves attributable to the equity holders of the parent. The primary objective of the
Company’s capital management is to maximise the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the
requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend
payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing
ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans
and borrowings, less cash and cash equivalents, excluding discontinued operations

Note: 45
Leases:

The Company has lease contracts for buildings. The leases generally have lease terms between 3 to 5 years. The Company’s
obligations under its leases are secured by the lessor’s title to the leased assets. Generally, the Company is restricted from
assigning and sub-leasing the leased assets. There lease contracts that include extension and termination options, which are
further discussed below.

The Company also has certain leases with lease terms of 12 months or less and leases with low value. The Company applies
the ‘short-term lease’ and ‘lease of low-value assets’ recognition exemptions for these leases.

Note: 47

Previous year figures have been regrouped/re-classified wherever necessary, to conform to current year’s classification.

As per our report of even date For and on behalf of the Board of Directors of

For M S K A & Associates Standard Glass Lining Technology Limited

Chartered Accountants CIN: L29220TG2012PLC082904

Firm Registration Number: 105047W

Mukesh Kumar Pugalia Kandula Nageswara Rao Katragadda Venkata Mohana Rao

Partner Managing Director Director

Membership Number: 221387 DIN: 00762497 DIN: 08362181

Place: Hyderabad P. Anjaneyulu K. Hima Priya

Date: May 23, 2025 Chief Financial Officer Company Secretary

M.No.: A62384