8. Provisions and contingent liabilities

The Company creates a provision when there is present obligation as a result of a past event and
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. 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. When the likelihood of outflow of resources is
remote, no provision or disclosure is made.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax
rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the
increase in the provision due to the passage of time is recognised as a finance cost.

9. Dividends on equity shares

The Company recognises a liability to make cash distributions to equity holders of the Company when
the distribution is authorised and the distribution is no longer at the discretion of the Company.

2D Recent 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
31 March 2026, MCA has notified following amendments to the existing standards applicable to
the Company.

In May 2025, MCA notified amendments to:

A. Ind AS 21 - The Effects of Changes in Foreign Exchange Rates, w.e.f. 1 April 2025

The amendment specifies how an entity should determine the exchange rate when foreign currency
cannot be obtained within a reasonable time and prescribes related disclosures. The Company
has assessed the impact of this amendment and concluded that it has no material impact on the
financial statements.

In August 2025, MCA notified amendments to:

B. Ind AS 1 - Presentation of Financial Statements, applicable w.e.f. 1 April 2025

The amendment relates to classification of liabilities as current or non-current and non-current
liabilities with covenants. In the context of classifying a liability as current, it removes the requirement
of existence of a right to defer settlement for at least 12 months after the reporting date and instead
requires that the said right should exist on the reporting date and have substance. The amendment
also introduces guidance on classification of liabilities with covenants. The Company has no impact of
these amendments in its classification criteria of current and non-current liabilities.

C. Ind AS 7 - Statement of Cash Flows, applicable w.e.f. 1 April 2025

The amendment in Ind AS 7 requires to inform users of financial statements of the existence of
supplier finance arrangements and explain the nature of the arrangements, the carrying amount of
liabilities and the range of payment due dates. The Company has reviewed the amendment and based
on its evaluation has determined that it does not have any impact in its financial statements.

D. Ind AS 107 - Financial Instruments: Disclosures, applicable w.e.f. 1 April 2025

Ind AS 107 has been amended to add supplier finance arrangements as a factor that may cause
concentration of liquidity risk. The Company has reviewed the amendment and based on its evaluation
has determined that it does not have any impact in its financial statements.

E. Ind AS 12 - Income taxes, applicable w.e.f. 1 April 2025

International Tax Reform - Pillar Two Model Rules applicable immediately - The amendments provide a
temporary mandatory relief from deferred tax accounting for top-up tax and disclose that they have
applied the relief. This relief is immediate and applies retrospectively. The Company has reviewed
the amendment and based on its evaluation has determined that it does not have any impact in its
financial statements.

b Terms/rights attached to equity shares

The Company has only one class of equity shares having a par value of C 10 per share. Each holder of
equity shares is entitled to one vote per share. The interim dividend declared by the Board of Directors and
the dividend proposed by the Board of Directors and approved by the shareholders in the annual general
meeting is paid in Indian rupees. 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.

Nature and purpose of reserve

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

Retained earnings: Retained earnings represents the surplus in profit and loss account that the Company
has earned till date, less any transfers to general reserve, special reserve, dividends or other distributions
paid to shareholders, reclassification of gain/(loss) on sale of FVTOCI equity instruments and balance of
remeasurement of net defined benefit plans. Retained earnings is a free reserve.

Equity instruments through other comprehensive income: The Company has elected to recognise
changes in the fair value of certain investment in equity securities in other comprehensive income.

These changes are accumulated in FVTOCI reserve within equity. The Company transfers amounts from this
reserve to retained earnings when relevant equity securities are derecognised.

In the previous financial year:

a The Company announced Voluntary Separation Schemes (VSS) for its workmen and staff on 2 May 2024.
In response, 65 employees opted for the same. The Company incurred a total expenditure of C 1,408 lakh
on the said schemes. In compliance with the provisions of the Ind AS 19 'Employees Benefits' the entire
amount of C 1,408 lakh was charged to the Statement of Profit and Loss.

b The Company transferred the leasehold rights of the land and building thereon at its Satara factory. Total
consideration was C 5,450 lakh and net of transaction costs, the Company realised profit of C 4,711 lakh.

c The Company also transferred plant and machinery for consideration of C 1,842 lakh and other assets
of C 43 lakh at its Satara factory. The Company realised profit of C 1,057 lakh.

Since all these items were non recurring and significant, they were shown as exceptional items.

28 Employee benefits

Liability for employee benefits has been determined by an actuary, appointed for the purpose, in conformity
with the principles set out in the Ind AS 19, the details of which are as hereunder.

Funded schemes
Gratuity

The Company provides for gratuity payments to employees. The gratuity benefit payable to the employees
of the Company is in line with provisions of 'The Code on Social Security, 2020' and the Company's gratuity
scheme, whichever is higher. The gratuity plan is a funded plan and the Company makes contributions to
approved gratuity fund.

These sensitivities have been calculated to show the movement in defined benefit obligation in isolation
and assuming there are no other changes in market conditions at the accounting date. There have
been no changes from the previous periods in the methods and assumptions used in preparing the
sensitivity analyses.

Funding arrangement and policy

The money contributed by the Company to the fund to finance the liabilities of the plan has to be invested.

The trustees of the plan have outsourced the investment management of the fund to insurance
companies. The insurance companies in turn manage these funds as per the mandate provided to
them by the trustees and the asset allocation which is within the permissible limits prescribed in the
insurance regulations.

There is no compulsion on the part of the Company to fully pre fund the liability of the Plan. The Company's
philosophy is to fund the benefits based on its own liquidity and tax position as well as level of under
funding of the plan.

The expected contribution payable to the fund under the plan next year is C 2 lakh

ii) Fair value hierarchy

This section explains the judgments and estimates made in determining the fair values of the financial
instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and
for which fair values are disclosed in the financial statements. To provide an indication about the reliability
of the inputs used in determining fair value, the Company has classified its financial instruments into the
three levels prescribed under the accounting standard. An explanation of each level follows underneath
the table.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices in active markets.
Quotes would include rates/values/valuation references published periodically by BSE, NSE etc. basis
which trades take place in a linked or unlinked active market. This includes traded bonds and mutual funds,
as the case may be, that have quoted price/rate/value.

Level 2: The fair value of financial instruments that are not traded in an active market are determined
using valuation techniques which maximise the use of observable market data (either directly as prices
or indirectly derived from prices) and rely as little as possible on entity-specific estimates. If all significant
inputs required to fair value an instrument are observable, the instrument is included in level 2.

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

Valuation techniques used to determine fair value

Valuation techniques used to determine fair value include

• Liquid mutual funds and certain bonds and debentures at NAV's/rates declared and/or quoted

• For other bonds and debentures values with references to prevailing yields to maturity matching
tenures, quoted on sites of credible organisation such as ICRA (Invetment information and credit rating
agency)

• Commercial papers and certificate of deposits, being short term maturity papers, amortised cost is
assumed to be the fair value

32 Financial risk management

The Company operates, at present, only in India. Whilst risk is inherent in the Company's activities, it is managed
through a risk management framework, including ongoing identification, measurement and monitoring subject
to risk limits and other controls. The Company's activities expose it to credit risk, liquidity risk and market risk.

This note explains the sources of risk which the Company is exposed to and how the entity manages the risk.

The Board of Directors provide guiding principles for overall risk management, as well as policies covering
specific areas, such as, credit risk, liquidity risk, and investment of available funds. The Company's risk
management is carried out by its Risk Management Committee as per such policies approved by the Board
of Directors. Accordingly, Company's Risk Management Committee identifies, evaluates and manages
financial risks.

A. Credit risk

Credit risk refers to the risk that a counterparty may default on its contractual obligations leading to a
financial loss to the Company. Credit risk primarily arises from cash equivalents, financial assets measured
at amortised cost, financial assets measured at FVTPL and trade receivables

Credit risk management

In regard to Trade receivables, which are typically unsecured, credit risk is managed through credit
approvals, establishing credit limit and continuously monitoring the credit worthiness of customers to
whom credit is extended (substantially through debt securities) in the normal course of business.

With regards to financial assets represented substantially by investments, the Company has an Investment
Policy which allows the Company to invest only with counterparties having a credit rating equal to or
above AA and P1 . The Company reviews the creditworthiness of these counterparties on an on-going
basis. Counter party exposure limits maybe updated as and when required, subject to approval of Board
of Directors.

B. Liquidity risk

The Company's principal sources of liquidity are 'cash and cash equivalents, investments in money market
instruments' and cash flows that are generated from operations. The Company believes that its working
capital is sufficient to meet the financial liabilities within maturity period.

C. Other risk (Market risk)

The Company has deployed its surplus funds in debt and money market instruments (including through
funds). The Company is exposed to price risk on such investments; which arises on account of movement
in interest rates, liquidity and credit quality of underlying securities.

As an unregistered CIC, the Company must invest at least 90% of its net assets in Group companies,of
which at least 60% must be through equity instruments. The Company invests in certificate of deposits
and liquid mutual funds to ensure adequate liquidity is available. Temporary market volatility, if any is not
considered to have material impact on the carrying value of these instruments. Nevertheless, the Company
has invested its surplus funds primarily in debt instruments of its group companies with CRISIL AAA and
STABLE A1 rating and thus the Company does not have significant risk exposure.

33 Capital management
a) Risk Management

The Company is cash surplus and has no capital other than Equity. The Company is not exposed to any
regulatory imposed capital requirements.

The cash surpluses are currently invested in income generating debt instruments (including through
mutual funds) and money market instruments depending on economic conditions in line with the
guidelines set out by the Management. Safety of capital is of prime importance to ensure availability of
capital for operations. Investment objective is to provide safety and adequate return on the surplus funds.

The Company does not have any borrowings and does not borrow funds unless circumstances require.

35 Analytical ratios

The Company is termed as an Unregistered Core Investment Company (CIC) as per Reserve Bank of India Core
Investment Companies (CIC) Directions, 2025 dated 28 November 2025 and is not exposed to any regulatory
imposed capital requirements. Thus, the following analytical ratios are not applicable to the Company:

1. Capital to risk-weighted assets ratio (CRAR)

2. Tier I CRAR

3. Tier II CRAR

4. Liquidity Coverage Ratio

36 Other notes

a. The Company has performed an assessment to identify transactions with struck off companies as at
31 March 2026 and no such company was identified.

b. No funds (which are material either individually or in the aggregate) have been advanced or loaned or
invested (either from borrowed funds or share premium or any other sources or kind of funds) by the
Company to or in any other person(s) or entity(ies), including foreign entities ('Intermediaries'), 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 Company ('Ultimate Beneficiaries') or provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries.

c. No funds (which are material either individually or in the aggregate) have been received by the
Company from any person(s) or entity(ies), including foreign entities ('Funding Parties'), with the
understanding, whether recorded in writing or otherwise, that the Company shall, directly or indirectly,
lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
Funding Party ('Ultimate Beneficiaries') or provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries.

d. The Company has not traded or invested in crypto currency or virtual currency during the financial year.

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

f On the basis of information requested from vendors with regards to their registration (filing of

Memorandum) under 'The Micro,Small and Medium Enterprises Development Act, 2006 (27 of 2006)' and
in view of the terms of payaments not exceeding 45 days, which has been promptly paid, no liability exists
as at 31 March 2026 and 31 March 2025 and hence no disclosures have been made in this regard.

37 Miscellaneous

Previous year figures have been regrouped wherever necessary.

Amounts less than C 50,000 have been shown at actual against respective line items statutorily required to

be disclosed.