l. Provisions

Provisions are recognised when the Company has
a present obligation (legal or constructive) as a
result of a past event, it is probable that an outflow
of resources embodying economic benefits will
be required to settle the obligation and a reliable
estimate can be made of the amount of the
obligation. The expense relating to a provision is
presented in the statement of profit and loss net of
any reimbursement.

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.

m. Retirement and other employee benefits

Retirement benefit in the form of provident fund is
a defined contribution scheme. The Company has
no obligation, other than the contribution payable
to the provident fund. The Company recognizes
contribution payable to the provident fund scheme
as an expense, when an employee renders the
related service.

The Company operates a defined benefit gratuity
plan in India, which requires contributions to be
made to a separately administered fund. The cost of
providing benefits under the defined benefit plan is
determined using the projected unit credit method.

Remeasurements, comprising of actuarial
gains and losses, the effect of the asset ceiling,
excluding amounts included in net interest on
the net defined benefit liability and the return on
plan assets (excluding amounts included in net
interest on the net defined benefit liability), are
recognised immediately in the balance sheet with
a corresponding debit or credit to retained earnings
through OCI in the period in which they occur.
Remeasurements are not reclassified to profit or
loss in subsequent periods.

n. Financial instruments

A financial instrument is any contract that gives
rise to a financial asset of one entity and a financial
liability or equity instrument of another entity.

Financial assets

Initial recognition and measurement

Financial assets are classified, at initial recognition,
as subsequently measured at amortised cost, fair
value through other comprehensive income (OCI),
and fair value through profit or loss.

Purchases or sales of financial assets that require
delivery of assets within a time frame established
by regulation or convention in the market place

(regular way trades) are recognised on the trade
date, i.e., the date that the Company commits to
purchase or sell the asset.

Subsequent measurement

For purposes of subsequent measurement, financial
assets are classified in four categories:

(i) Financial assets at amortised cost

(ii) Financial assets at fair value through other
comprehensive income (FVTOCI)

(iii) Financial assets at fair value through profit or
loss (FVTPL)

Financial assets are not reclassified subsequent to
their recognition, except if and in the period the
Company changes its business model for managing
financial assets.”

Financial assets at amortised cost

A ‘financial asset'' is measured at the amortised cost
if both the following conditions are met:

(i) The asset is held within a business model
whose objective is to hold assets for collecting
contractual cash flows, and

(ii) Contractual terms of the asset give rise on
specified dates to cash flows that are solely
payments of principal and interest (SPPI) on
the principal amount outstanding.

This category is the most relevant to the Company.
After initial measurement, such financial assets are
subsequently measured at amortised cost using the
effective interest rate (EIR) method. Amortised cost
is calculated by taking into account any discount or
premium on acquisition and fees or costs that are
an integral part of the EIR. The EIR amortisation is
included in finance income in the profit or loss. The
losses arising from impairment are recognised in
the profit or loss. The Company''s financial assets at
amortised cost includes trade receivables and other
receivables.

Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss
are carried in the balance sheet at fair value with net
changes in fair value recognised in the statement of
profit and loss.

This category includes derivative instruments and
listed equity investments which the Company had
not irrevocably elected to classify at fair value
through OCI. Dividends on listed equity investments
are recognised in the statement of profit and loss
when the right of payment has been established.

Derecognition

A financial asset (or, where applicable, a part of a
financial asset or part of a group of similar financial
assets) is primarily derecognised when:

(i) The rights to receive cash flows from the asset
have expired, or

(ii) The Company has transferred its rights to
receive cash flows from the asset or has
assumed an obligation to pay the received
cash flows in full without material delay
to a third party under a ‘pass-through''
arrangement; and either (a) the Company
has transferred substantially all the risks and
rewards of the asset, or (b) the Company has
neither transferred nor retained substantially
all the risks and rewards of the asset, but has
transferred control of the asset.

When the Company has transferred its rights to
receive cash flows from an asset or has entered into
a pass-through arrangement, it evaluates if and to
what extent it has retained the risks and rewards
of ownership. When it has neither transferred nor
retained substantially all of the risks and rewards of
the asset, nor transferred control of the asset, the
Company continues to recognise the transferred
asset to the extent of the Company''s continuing
involvement. In that case, the Company also
recognises an associated liability. The transferred
asset and the associated liability are measured on a
basis that reflects the rights and obligations that the
Company has retained.

Continuing involvement that takes the form of a
guarantee over the transferred asset is measured
at the lower of the original carrying amount of the
asset and the maximum amount of consideration
that the Company could be required to repay.

Impairment of financial assets

In accordance with Ind-AS 109, the Company
applies expected credit loss (“ECL”) model for
measurement and recognition of impairment loss.
The Company follows ‘simplified approach'' for
recognition of impairment loss allowance on trade
receivables.

The application of simplified approach does not
require the Company to track changes in credit risk.
Rather, it recognizes impairment loss allowance
based on lifetime ECLs at each reporting date, right
from its initial recognition.

For recognition of impairment loss on other financial
assets and risk exposure, the Company determines
that whether there has been a significant increase
in the credit risk since initial recognition. If credit
risk has not increased significantly, 12-month ECL
is used to provide for impairment loss. However, if
credit risk has increased significantly, lifetime ECL
is used. If, in a subsequent period, credit quality
of the instrument improves such that there is no
longer a significant increase in credit risk since
initial recognition, then the Company reverts to
recognizing impairment loss allowance based on
12-month ECL.

Lifetime ECL are the expected credit losses resulting
from all possible default events over the expected
life of a financial instrument. The 12-month ECL
is a portion of the lifetime ECL which results from

default events on a financial instrument that are
possible within 12 months after the reporting date.

As a practical expedient, the Company uses a
provision matrix to determine impairment loss
allowance on portfolio of its trade receivables. The
provision matrix is based on its historically observed
default rates over the expected life of the trade
receivables and is adjusted for forward-looking
estimates. At every reporting date, the historical
observed default rates are updated and changes in
the forward-looking estimates are analysed.

ECL impairment loss allowance (or reversal)
recognized during the period is recognized as
income/ expense in the Statement of profit and
loss. This amount is reflected in a separate line in
the Statement of profit and loss as an impairment
gain or loss.

Financial assets measured as at amortized cost and
contractual revenue receivables. ECL is presented
as an allowance, i.e., as an integral part of the
measurement of those assets in the balance sheet.
The allowance reduces the net carrying amount.

Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial
recognition, as financial liabilities at fair value
through profit or loss, loans and borrowings,
payables, or as derivatives designated as hedging
instruments in an effective hedge, as appropriate.

All financial liabilities are recognised initially at fair
value and, in the case of loans and borrowings and
payables, net of directly attributable transaction
costs.

The Company''s financial liabilities include trade
and other payables, loans and borrowings including
bank overdrafts.

Subsequent measurement

For purposes of subsequent measurement, financial
liabilities are classified in two categories:

(i) Financial liabilities at fair value through profit
or loss

(ii) Financial liabilities at amortised cost

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or
loss include financial liabilities held for trading
and financial liabilities designated upon initial
recognition as at fair value through profit or loss.

Financial liabilities are classified as held for trading if
they are incurred for the purpose of repurchasing in
the near term. This category also includes derivative
financial instruments entered into by the Company
that are not designated as hedging instruments
in hedge relationships as defined by Ind AS 109.
Separated embedded derivatives are also classified
as held for trading unless they are designated as
effective hedging instruments.

Gains or losses on liabilities held for trading are
recognised in the profit or loss.

Financial liabilities at amortised cost

This is the category most relevant to the Company.
After initial recognition, interest-bearing loans
and borrowings are subsequently measured at
amortised cost using the EIR method. Gains and
losses are recognised in profit or loss when the
liabilities are derecognised as well as through the
EIR amortisation process.

Amortised cost is calculated by taking into account
any discount or premium on acquisition and fees or
costs that are an integral part of the EIR. The EIR
amortisation is included as finance costs in the
statement of profit and loss.

This category generally applies to borrowings.

Derecognition

A financial liability is derecognised when the
obligation under the liability is discharged or
cancelled or expires. When an existing financial
liability is replaced by another from the same lender
on substantially different terms, or the terms of
an existing liability are substantially modified,
such an exchange or modification is treated as
the derecognition of the original liability and the
recognition of a new liability. The difference in the
respective carrying amounts is recognised in the
statement of profit and loss.

Offsetting of financial instruments

Financial assets and financial liabilities are offset,
and the net amount is reported in the balance sheet
if there is a currently enforceable legal right to offset
the recognised amounts and there is an intention to
settle on a net basis, to realise the assets and settle
the liabilities simultaneously.

o. Cash and cash equivalents

Cash and cash equivalent in the balance sheet
comprise cash at banks and on hand and short-term
deposits with an original maturity of three months
or less, that are readily convertible to a known
amount of cash and subject to an insignificant risk
of changes in value.

For the purpose of the statement of cash flows,
cash and cash equivalents consist of cash and short¬
term deposits, as defined above, net of outstanding
bank overdrafts as they are considered an integral
part of the Company''s cash management.

p. Segment Reporting

Operating segments are reported in a manner
consistent with the internal reporting provided
to the chief operating decision maker. The Chief
Operational Decision Maker monitors the operating
results of its business Segments separately for
the purpose of making decisions about resource
allocation and performance assessment. Segment
performance is evaluated based on profit and loss

and is measured consistently with profit or loss in
the financial statements.

The Board of Directors of the Company have been
identified as the chief operating decision maker of
the Company.

q. Contingent liability

A disclosure for a contingent liability is made where
there is a possible obligation that arises from past
events and the existence of which will be confirmed
only by the occurrence or non-occurrence of one
or more uncertain future events not wholly within
the control of the Company or a present obligation
that arises from the past events where it is either
not probable that an outflow of resources will
be required to settle the obligation or a reliable
estimate of the amount cannot be made

r. Earnings per share

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

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

2.2 Material accounting policy information

Significant accounting judgements, estimates and
assumptions

The preparation of the Company''s financial statements
requires management to make judgements, estimates
and assumptions that affect the reported amounts
of revenues, expenses, assets and liabilities, and
the accompanying disclosures, and the disclosure
of contingent liabilities. Uncertainty about these
assumptions and estimates could result in outcomes that
require a material adjustment to the carrying amount of
assets or liabilities affected in future periods

Other disclosures relating to the Company''s exposure to
risks and uncertainties includes:

• Capital management

• Financial risk management objectives and policies

• Sensitivity analyses disclosures
Judgements

In the process of applying the Company''s accounting
policies, management has made the following
judgements, which have the most significant effect on
the amounts recognised in the financial statements:

Determining the lease term of contracts with renewal
and termination options - Company as lessee

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 whether or not 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.

Estimates and assumptions

The key assumptions concerning the future and other
key sources of estimation uncertainty at the reporting
date, that have a significant risk of causing a material
adjustment to the carrying amounts of assets and
liabilities within the next financial year, are described
below. The Company based its assumptions and estimates
on parameters available when the financial statements
were prepared. Existing circumstances and assumptions
about future developments, however, may change due to
market changes or circumstances arising that are beyond
the control of the Company. Such changes are reflected
in the assumptions when they occur.

Impairment of non-financial assets

Impairment exists when the carrying value of an asset
or cash generating unit exceeds its recoverable amount,
which is the higher of its fair value less costs of disposal
and its value in use. The fair value less costs of disposal
calculation is based on available data from binding sales
transactions, conducted at arm''s length, for similar
assets or observable market prices less incremental costs
for disposing of the asset. The value in use calculation
is based on a DCF model. The cash flows are derived
from the budget for the next five years and do not
include restructuring activities that the Company is
not yet committed to or significant future investments
that will enhance the asset''s performance of the CGU
being tested. The recoverable amount is sensitive to
the discount rate used for the DCF model as well as the
expected future cash-inflows and the growth rate used
for extrapolation purposes. These estimates are most
relevant to goodwill recognised by the Company. The key
assumptions used to determine the recoverable amount
for the different CGUs, including a sensitivity analysis.

Provision for expected credit losses of trade receivables
and contract assets

The Company uses a provision matrix to calculate ECLs
for trade receivables and contract assets. The provision
rates are based on days past due for groupings of various
customer segments that have similar loss patterns

The provision matrix is initially based on the Company''s
historical observed default rates. The Company will

calibrate the matrix to adjust the historical credit loss
experience with forward-looking information. At every
reporting date, the historical observed default rates are
updated and changes in the forward-looking estimates
are analysed.

The assessment of the correlation between historical
observed default rates, forecast economic conditions
and ECLs is a significant estimate. The amount of ECLs
is sensitive to changes in circumstances and of forecast
economic conditions. The Company''s historical credit
loss experience and forecast of economic conditions may
also not be representative of customer''s actual default in
the future.

Defined benefit plans (gratuity benefits)

The cost of the defined benefit gratuity plan and other
post-employment benefits and the present value of
the gratuity obligation are determined using actuarial
valuations. An actuarial valuation involves making 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.

Fair value measurement of financial instruments

When the fair value of financial assets and liabilities
recorded in the balance sheet cannot be measured
based on quoted prices in active markets, their fair
value is measured using valuation techniques including
the discounted cash flow (DCF) model. The inputs
to these models are taken from observable markets
if available, otherwise, 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 the financial
instrument.

Leases - Estimating the incremental borrowing rate

The Company cannot readily determine the interest rate
implicit in the lease, therefore, it uses its incremental
borrowing rate (IBR) to measure lease liabilities. The
IBR is the rate of interest that the Company would
have to pay to borrow over a similar term, and with a
similar security, the funds necessary to obtain an asset
of a similar value to the right-of-use asset in a similar
economic environment. The IBR therefore reflects
what the Company ‘would have to pay'', which requires
estimation when no observable rates are available or
when they need to be adjusted to reflect the terms and
conditions of the lease. The Company estimates the IBR
using observable inputs (such as market interest rates).

Notes

1. Trade receivables are non-interest bearing and have credit period upto 30 days

2. For terms and conditions with related parties, refer note 30.

3. For explanation on company''s credit risk management process, refer note 32.

4. There are no unbilled trade receivables, hence the same are not disclosed in the ageing schedule.

5. Trade receivables does not includes any receivables from directors and officers of the Company other than disclosed
in note 30.

6. For trade receivables, the Company applies a simplified approach in calculating Expected credit loss (ECL). Therefore,
the Company does not track changes in credit risk, but instead recognizes a loss allowance based on provision matrix
considering the ageing of trade receivable, historical credit loss experience adjusted for forward-looking factors specific to
the trade receivable and the economic environment.

7. Trade receivables have been pledged as security against borrowings from bank and financial institutions. (Refer Note 14A)

(b) Terms/ rights attached to equity shares

The Company has one class of equity shares having a par value of Rs. 10 each per share. Each shareholder is eligible for one
vote per share held. Each shareholder is entitled for dividend declared/ proposed if any, by the Board of Directors which
is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend
which is paid as and when declared by the Board of Directors. In the event of liquidation, the equity shareholders are
eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their
shareholding.

Nature and purpose of reserves

1. Retained Earnings

Retained earnings are the profits that the Company has earned till date.

2. Securities Premium

Securities premium is used to record the premium on issue of shares. This can be utilized only for limited purposes such as
issuance of bonus shares in accordance with provisions of Companies Act, 2013.

Primary Security: Secured by way of hypthecation of the company''s entire stock of raw materials, WIP, Semi finished and finished
goods, Consumable stores spares including book debts, Bills whether documentary or clean, outstanding monies, Receivables
both present and future, any other current asset and personal guarantee of all the directors of the Company.

Collateral Security:

1) Bearing Survey No. 67/1A and 67/1B, Situated At Mouza-Khutala,T.S.NO.7 Chandrapur-Ghughus State Highway road
Tehsil & Dist : Chandrapur.

2) Residential Property situated at i.e. All that piece & parcel of the diverted vacant land, bearing Survey Number: 79/2,
Plot Nos. 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 18, 20, 34, 35,36 situated at Muza- Kosara, New Chandrapur Township
Chandrapur 442406 Total area admeasuring: 7385.73 Sqm., Chandrapur.

3) Residential Property situated at all the piece and parcel of free hold Plot No. B 32, area 334.448 sq.mt alongwith construction
thereon admeas 232.25 sq mtrs. as per sanctioned building plan, corresponding municipal corporation house /malmatta
no. 911 (old Malmatta no.13 ) out of survey no. 124, ward no. 3A t.s .11 situated at Mouza-De-wai Govindpur Rayytwari,
Shastrinagar, chandrapur

4) Industrial Property situated at with piece and parcel of land & building Plot No B-38, admeasuring about 6050.00 Sq. Mtrs
in Industrial area MISC within the village limit of Chinchala Tah & Dist Chandrapur.

5) All the piece and parcel of free hold plot no .44 b, admeasuring about 334.45 sq. Mtrs plot area, out of sr. No. 124,ward no.
3a t.s.no. 11, at mouza-dewai govindpur rayt. Tah & dist. Chandrapur maharashtra - 442401

6) ERAI Honda Showroom- Ground floor, First floor and Second floor at Survey no. 59/B/1, ta sa no,.11 Chandrapur- Nagpur
Highway, at Mouza Wadgaon, Tah and Dist Chandrapur 442402.

7) Property No 402 & 403, on 2nd Floor, "Kukreja Infinity" on Land bearing plot no 2 Kh no. 178/1, corporation house no 7,
city survey no 1704. Commercial road civil line, Mouza -Sitabuldi. Dist Nagpur.

8) Commercial block 805 A and 805 B on 8th floor, central plaza, sarat bose road, Kolkatta-700020.

9) Flat No. 1005, 10th Floor ,A Wing ,Hubtown Sunstone , Road no.8, Kala Nagar, Bandra East , Mumbai-400051

10) Block No.1101, on 11th floor, "Naniks Ashtavinayak Park Avenue", Plot no. 2/1 & 11/2 , NMC house no. 294 &295C, ward
no.60 Mouza -wadkapad circle no.24, bearing city survey no. 454, sheet no. 14 tah & dis-Nagpur-440001.

11) Plot No 29 B, Mouza Dewai Govindpur Rayatwari, T.S. No 11, Survey No 124, Malmata No. 2317, admeasuring 334 Sq
mtr, Situated at Shastri Nagar Ward, Chandrapur, Within the limits of Chandrapur Municipal Corporation, Tahsil and Dist
Chandrapur.

12) Residential property i.e. All that piece & parcel of the Plot No.A-5, area 603.865 sq.mtr, property bearing Survey Number:
124, situated at Mouza- Dewai Govindpur Rayyatwari, T.S No,11, Tahsil & Dist- Chandrapur, Chandrapur.

13) Bunglow no. B 43, SR No. 124. Plot No. 43, Near Radha Krishna Temple. Mul Road, Shastri Nagar. Chandrapur. Maharashtra

- 442401.

14) Survey no 69/1 and 69/2 amalgamated now (comprising both orignal survey numbers 69/2 and 69/3) of land (NA land) parcel
measuring Area 69/2 (69/3 amalgamated into 69/2) - 10,650 sq. mt. Area - 69/1 - 3,014.30 sq. mt situated at Chandrapur

- Nagpur Highway. Property belonging to Sutlej Strategies LLP through its Designated Partner Shri Avi Mahendrapalsingh
Saluja & Shri Rahul Roshanlal Chadda.

Term loan from Banks and Financial Institutions: Tenure (23 to 86 Months)

Security and Guarantee

1) Secured against Fixed Deposit Receipt

2) Residential Property bearing Survey No.: 149/1A, T.S. no.7, Plot No.1, Situated at Mouza Kosara Tah & Dist Chandrapur.

3) Land bearing City Survey no. 79, out of khasra no. 109/15, 109/16, 109/17, 109/18, 109/19, sheet no.26/18, admeasuring
about 285.19 sq. mtr, house no. 340, Mouza, Lendra, Tahsil and district Nagpur.

4) ERAI Honda Showroom- Third floor at Survey no. 59/B/1, Chandrapur- Nagpur Highway, at Mouza Wadgaon, Chandrapur.

5) First & Exclusive charge over equipment/assets for which loan has been granted

6) Personal guarantee of all the directors of company

Notes :-

1) The loan facilities are subject to certain financial and non-financial covenants. The Company has complied with the
covenants as per the terms of the loan agreement/ sanction letter.

2) The Company has not used borrowings taken from banks and financial institution for the purpose other than for which it
was taken.

Note : During the year, the Government of India has introduced the Code on Social Security, 2020 ("the Code"), which consolidates
and subsumes various existing labour and social security legislations, including the Payment of Gratuity Act, 1972. The Code,
upon notification and enforcement of the relevant provisions, inter alia, revises the ceiling limit applicable to gratuity payable to
employees upon retirement or cessation of service.

Note : Consequent to the aforesaid legislative development, the Company has re-assessed its obligation towards post-retirement
benefits and has recognised an incremental liability with respect to the provision for gratuity as at March 31, 2026. The said
increase in provision has been determined based on a revised actuarial valuation carried out as at the Balance Sheet date in
accordance with Ind AS 19 - Employee Benefits, and the resultant impact has been duly recognised in the Statement of Profit
and Loss / Other Comprehensive Income, as applicable. The Company continues to monitor the finalisation of Central/State
Rules and further Government clarifications and will account for any additional impact as required.

*Pursuant to the introduction of Section 115BAA of the Income-tax Act, 1961 ("New Tax Regime"), the Company has an option
to pay corporate income tax at a lower rate of 22% plus applicable surcharge and cess as against the currently applicable rate
of 25% plus surcharge and cess. Under the New Tax Regime, provisions of Section 115 JB-Minimum Alternate Tax (MAT) are no
longer applicable. Accordingly the Company has elected to opt for New Tax Regime.

Deferred tax

The Company has accrued significant amounts of deferred tax. The majority of the deferred tax liability represents accelerated
tax relief for the depreciation of property, plant and equipment. Significant components of deferred tax (assets) and liabilities
recognised in the balance sheet are as follows :

Note 29: Employee Benefit Obligations
Post-employment obligations
Gratuity

(a) Regular Employees

The Company operates a defined benefit plan viz. namely gratuity for its employees. Under the gratuity plan, every employee
who has completed at least 5 years of service gets a gratuity on departure @ 15 days (minimum) of the last drawn salary for each
year of service.

The following tables summarized the components of net benefit expense recognized in the statement of profit and loss, other
comprehensive income, and the funded status and amount recognized in the balance sheet.

The amounts recognized in the balance sheet and the movements in the net defined benefit obligation over the year are as
follows:

Notes :

1. Liabilities are very sensitive to discount rate, salary inflation and withdrawal rate.

2. Liabilities are very less sensitive due to change in mortality assumptions. Hence, sensitivities due to change in mortality are
ignored.

Note 29: Employee Benefit Obligations
Post-employment obligations
Gratuity

(b) Contractual Employees

In accordance with Indian law, the Company operate a scheme of gratuity which is a defined benefit plan. The gratuity plan
provides for a lump sum payment to vested employees at retirement, death while in employment or on termination of employment
in accordance with the provisions under the Code on Social Security, 2020 or as per the Company Scheme, as applicable. Vesting
occurs upon completion of contractual year of continuous years of service as defined in the Code on Social Security, 2020.

The following tables summarized the components of net benefit expense recognized in the statement of profit and loss, other
comprehensive income, and the funded status and amount recognized in the balance sheet.

The amounts recognized in the balance sheet and the movements in the net defined benefit obligation over the year are as
follows:

1) Related parties are identified by the management in accordance with Ind-AS 24 and the same has been relied upon by the
auditor.

2) Terms and conditions of transactions with related parties-

a. All related party transactions entered during the year were in ordinary course of the business and are on arm''s length
basis.

b. The Company has not recorded any impairment of receivables relating to amounts owed by related parties. This
assessment is undertaken each financial year through examining the financial position of the related party and the
market in which the related party operates.

3) As the liabilities for defined benefit plans are provided on actuarial basis for the Company as a whole, the amounts pertaining
to Key Management Personnel are not included.

4) The Promoters of the Company, Mr Mohit Satishkumar Chadda, Mr. Manish Krishanlal Chadda, Mr. Rahul Roshanlal Chadda,
Mrs. Priya Anuj Chadda and Mr. Anuj Krishanlal Chadda, have provided personal guarantees and some of their property as
security with respect to borrowings availed by the Company from various lenders.

5) Caliber Infraproject LLP, Chadda Trading Co., KSR Engineering & Fabrication, along with Mrs. Kirti Chadda, Mrs. Shivani
Chadda, and Mrs. Neelam Chadda, have provided their properties as security to various lenders against fund-based and
non-fund-based credit facilities availed by the company.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a

current transaction between willing parties, other than in a forced or liquidation sale.

The Company has established the following fair value hierarchy that categorises the values into 3 levels. The inputs to valuation

techniques used to measure fair value of financial instruments are:

Level 1- This hierarchy uses quoted (unadjusted) prices in active markets for identical assets or liabilities

Level 2- The fair value of financial instruments that are not traded in an active market is determined using valuation techniques

which maximize the use of observable market data and rely as little as possible on Company specific estimates.

Level 3- If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3.

The following methods and assumptions were used to estimate the fair values:

1. The Company has not disclosed the fair values of financial instruments such as cash and cash equivalents, other bank
balances, trade receivables, loans, other financial assets, trade payables, other financial liabilities and borrowings because
their carrying amounts are a reasonable approximation of fair value. Further, for financial assets, the Company has taken
into consideration the allowances for expected credit losses and adjusted the carrying values where applicable.

2. For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

3. Investments traded in active markets are determined by reference to quoted prices in an active market in case of listed
securities

The Company''s financial assets includes investments, loans given, trade receivables, cash and cash equivalents, other bank
balances and other financial assets that comes directly from its operations and financial liabilities comprises of borrowings,
trade and other payables. It has an integrated financial risk management system which proactively identifies monitors and takes
precautionary and mitigation measures in respect of the various risks.

The Company is exposed to market risk, credit risk and liquidity risk. The Company''s senior management oversees the management
of these risks, which evaluates and exercises independent control over the entire process of financial risks.

Market Risk

Market Risk is the risk that the future cash flows of a financial instrument will fluctuate due to changes in market prices. The
most common types of market risks include interest rate risk, foreign currency risk. Market risk is attributable to all market risk
sensitive financial instruments including investments and deposits, foreign currency receivables and loans and borrowings.

The finance department undertakes management of cash resources, borrowing mechanism and ensuring compliance with market
risk limits.

Interest Rate Risk

Interest rate risk is the risk that the future cash flows or the fair value of a financial instrument will fluctuate because of changes in
market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s
long-term debt obligations.

The Company''s investments in Bank deposits are with fixed rate of interest with fixed maturity and hence not significantly
exposed to Interest rate sensitivity.

Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading
to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its
financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial
instruments. The Company periodically assesses financial reliability of customers and other counter parties, taking into account
the financial condition, current economic trends, and analysis of historical bad debts and ageing of financial assets.

Financial assets are written off when there is no reasonable expectation of recovery, such as a debtor failing to engage in a
repayment plan with the Company. Where loans or receivables have been written off, the Company continues to engage in
enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognised as income in
the statement of profit and loss.

Cash and cash equivalents:

Balances with banks are subject to low credit risks due to good credit ratings assigned to the banks.

Trade and other receivables:

The Company measures the expected credit loss of trade receivables and loans from individual customers based on historical
trend, industry practices and the business environment in which the entity operates. Loss rates are based on actual credit loss
experience and past trends.

Liquidity risk

Liquidity risk is the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable price. The
Company''s finance department is responsible for liquidity, funding as well as settlement management and then processes related
to such risks are overseen by senior management through rolling forecasts on the basis of expected cash flows.

Note 33: Capital Management

For the purpose of Companies capital management, capital includes issued share capital, share premium and all other equity
reserves. The primary objective of capital management is to maximise 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.

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 and bank balances.

The Board of Directors of the Company have been identified as the Chief Operating Decision Maker (CODM) as defined by
Ind AS 108. The CODM evaluates the Company''s performance and allocates the resources and does not review any discrete
information to evaluate performance of any individual product or geography.

The Company is primarily engaged in operations in India and does not have any revenue from external customers outside India.
Also the Company does not have any assets located outside India.

Rationale for Classification as Exceptional Item

The amount of ^568.42 lakhs has been classified as an Exceptional Item in the Statement of Profit and Loss on the following

grounds:

(a) Legislative change - non-recurring and one-time in nature: The charge arises directly from the amendment to the Payment
of Gratuity Act, 1972 extending coverage to contractual / fixed-term employees. Prior to this amendment, no gratuity
obligation existed for this category of employees. The recognition of the present value of the entire obligation accumulated
since the employment of these workers represents a one-time charge. In subsequent years, only the incremental service
cost and interest cost will be recognised as part of normal employee benefit expense.

(b) Magnitude and significance: The amount is material (^568.42 lakhs) and its inclusion in normal employee benefit expense
would distort the comparability of results for FY 2025-26 against prior periods and against peer entities.

(c) Consistent with Ind AS 1 para 97: The nature and amount are disclosed separately to enable users to assess the financial
performance of the entity.

Note 40: Other Statutory Disclosures

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

(ii) The Company have not traded or invested in Crypto currency or Virtual Currency during reporting year.

(iii) 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).

(iv) The Company have 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.

(v) The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with
the understanding (whether recorded in writing or otherwise) that the Company shall:

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

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

(vi) The Company does not have any borrowings from banks and financial institutions that are used for any other purpose other
than the specific purpose for which it was taken at the reporting balance sheet date.

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

(viii) The Company is not declared as a wilful defaulter by any bank or financial institution or other lender during the reporting
year.

(ix) Section 8 of the Companies Act, 2013 companies are required to disclose grants or donations received during the year.
Since, the Company is not covered under Section 8 of the Companies Act, 2013, the said disclosure is not applicable.

(x) There are no scheme of arrangements which have been approved by the Competent Authority in terms of sections 230 to
237 of the Companies Act, 2013 during the reporting year.

(xi) During the reporting year, Company has granted loans or advances in the nature of loans to its wholly owned subsidiary,
which are interest free and repayable on demand.

(xii) The Company has not identified any transactions or balances in any reporting year with companies whose name is struck
off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

(xiii) The following loans have not yet been marked as satisfied in the records of the Registrar of Companies, despite repayment
or closure of the respective borrowings as on March 31, 2026:

(ix) The Company has used an accounting software for maintaining its books of accounts which has a feature of recording audit
trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software.

Additionally, the audit trail of prior year(s) has been preserved by the company as per the Statutory requirements for record
retention.

Note 41: Events After Reporting year

Subsequent to the reporting date, Caliber Mining And Logistics Limited has made an investment in Vadakhol Asoli Mining Private
Limited on April 25, 2026, wherein the Company holds 40% of the share capital of the said entity.

As the incorporation and investment formalities were completed after the Balance Sheet date, the said transaction has been
considered as a non-adjusting event in accordance with the requirements of Ind AS 10 - Events after the Reporting Period.
Accordingly, no adjustment has been made in the financial statements for the year ended March 31, 2026, in respect of the
above transaction.

Note 42: Previous year''s figures have been recomputed/ reclassified wherever necessary to correspond with the current year''s
classification/disclosure.

Note 43: All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakhs as per the
requirements of Schedule III, unless otherwise stated.