Notes to Accounts of CSM Technologies Ltd.

2.12 Provisions, Contingent Liabilities & Contingent Assets

Provisions are recognized when the Company has a present obligation (legal or
constructive) as a result of a past event, and it is probable that an outflow of economic
benefits will be required to settle the obligation and a reliable estimate of the amount
of the obligation can be made. Where the time value of money is material, provisions
are stated at the present value of the expenditure expected to settle the obligation. All
provisions are reviewed at each reporting date and adjusted to reflect the current best
estimate.

Where it is not probable that an outflow of economic benefits will be required, or the
amount cannot be estimated reliably, the obligation is disclosed as a contingent liability,
unless the probability of outflow of economic benefits is remote. Possible obligations,

whose existence will only be confirmed by the occurrence or non-occurrence of one or
more future uncertain events not wholly within the control of the Company, are also
disclosed as contingent liabilities unless the probability of outflow of economic benefits is
remote. Contingent Assets are not recognized in the financial statements. However, when
the realization of income is virtually certain, then the related asset is not a contingent
asset and its recognition is appropriate.

2.13 Earnings per Share

In determining the Earnings per share, the Company considers profit attributable to the
owners of the Company. The number of shares used in computing basic earnings per
share is the weighted average number of shares outstanding during the period. The
number of shares used in computing diluted earnings per share comprises the weighted
average shares considered for deriving basic earnings per share and also the weighted
average number of equity shares that could have been issued on the conversion of all
dilutive potential equity shares. Dilutive potential equity shares are deemed converted as
of the beginning of the year unless issued at later date.

2.14 Borrowing Costs

Borrowing costs are expensed as and when the liability to pay arises. However, where
the borrowing cost is directly attributable to any acquisition, construction or production
of qualifying assets which takes substantial period of time to get ready for intended use,
such attrubutable borrowing cost till the time the asset is ready for its intended use, is
capitalized as part of the cost of such asset. Borrowing costs consist of interest and other
costs that an entity incurs in connection with the borrowing of funds.

2.15 Impairment

Periodically during the year but definitely at the end of each Financial year, the Company
assesses whether there is any indication that an asset (tangible or intangible) needs to
be impaired. If such indication exists, the entity estimates the recoverable amount of
the asset. An asset is impaired when its carrying value exceeds its recoverable amount.
Where an indication of impairment exists, the asset''s recoverable amount is estimated.

An asset''s recoverable amount is, higher of the asset''s or cash-generating unit''s value
in use and its fair value less costs of disposal; and is determined for an individual asset,
unless the asset does not generate cash inflows that are largely independent of those
from other assets or group of assets, in which case the recoverable amount is determined
for the cash-generating unit to which the asset belongs.

2.16 Share issue expenses

The company adopts Ind AS 32 for accounting of share issue expenses. Expenses
associated with an equity transaction is accounted for as a deduction from equity, net of
any related income tax benefit.

An expenses is treated as expense associated with an equity transaction if expenses is
directly attributable to the equity transaction that otherwise would have been avoided.

The costs of an equity transaction that is abandoned are recognised as an expense
immediately upon its abandonment.

2.17 Segment Reporting

Operating segment is a component of Company that engages in a business activities
from which it may earn revenue and incur expenses, including revenues and expenses
that relate to transaction with any other component of Company, and for which
discrete financial information is available. All operating segment results are reviewed
by management to make decision about resources to be allocated to the segment and
assess their performance.

The accounting policies adopted for segment are in conformity with the accounting policy
adopted by the Company. Further, Inter segment revenue has been recognized based on
transaction price agreed between two segments which is primarily market based.

Revenue and expenses have been identified to the segment on the basis of their
relationship to the operating activities of the segment. Revenue and expenses which
relate to the Company as a whole and are not allocable to segment on a reasonable
basis, have been included under "un-allocated corporate expenses net of un-allocated
income".

2.18 Prepaid Expenses

Expenditure of 3 25,000/- or less, in each case, incurred in advance of the subsequent
year(s) are charged off as expenses of the current year.

Bank guarantee charges are recognized and amortized over the validity period of the
respective bank guarantees.

During FY 2025-26, The Board was informed that Bank Guarantee ("BG") charges have
historically been recognized as an expense in full in the year of incurrence. BG charges
aggregated to 31.22 crore, which is significantly higher as compared to previous financial
years, and a substantial portion of such charges relates to Bank Guarantees whose
validity extends beyond the current financial year.

Management reviewed the accounting treatment and noted that an amount of
approximately 386.19 lakhs pertains to future accounting periods based on the remaining
validity period of the respective Bank Guarantees. In line with the Matching Concept,
Accrual Basis of Accounting and applicable Indian Accounting Standards (Ind AS),
management proposed that BG charges be recognized and amortized over the validity
period of the respective Bank Guarantees instead of being fully charged to the Statement
of Profit and Loss in the year of incurrence.

The Board further noted that the impact of the revised accounting treatment on earlier
financial years was evaluated by the management and it was observed that the amount
relating to future accounting periods in such earlier years was not material in relation to
the turnover and overall financial statements of the Company. Accordingly, considering
the materiality principles under applicable Indian Accounting Standards (Ind AS), the

Board noted that restatement/reclassification of prior period financial statements is
not considered necessary and the revised accounting treatment shall be implemented
prospectively from FY 2025-26.

The revised treatment would result in a more appropriate matching of costs with the
periods benefiting from such Bank Guarantees, improve the presentation of financial
performance, ensure consistency in accounting treatment and provide a more reliable
presentation of the financial performance of the Company.

2.19 Prior Period / Extraordinary Adjustments

Expenditure / Receipts relating to the particular year, coming to notice after closure
of the Accounts i.e. after the cut off date, are booked under the relevant head of
expenditure / receipt of the next year, if the amount involved is not more than the
materiality decided by management. In case the amount is more than the materiality as
per management, the provisions contained in Ind AS 8 are applied for determination of
its accountal under natural head of account of Current year / Prior period / Extraordinary
Expenditure / Income.

’Intangible assets under development comprises of cost related to internally developed
(partially) softwares to be used as product(s). The amount of 1 1025.01 Lakh (31st March
2025: 1 NIL) includes cost of manpower engaged for the development, hardware and
license cost used for such development. The following are the partially developed software
the cost of which is disclosed as intangible assets under development.

♦ CSM AI Foundry: an integrated artificial-intelligence and machine-learning
development framework

♦ Plantric: an AI-enabled project planning, monitoring and smart-delivery platform

♦ LCNC Framework: a low-code/no-code rapid application-development platform

♦ cSigner: a digital-signing and signature-verification platform

♦ Aadhaar Secure Vault: a secure Aadhaar data-management, tokenisation and
compliance platform

♦ Tendrils ERP: an integrated enterprise-resource-planning platform covering human
resources, payroll, finance, projects, procurement and other operational functions.

Note 18 : Non-Current Assets held for Sale

Assets are classified as "held for sale" if their carrying amount is to be recovered primarily
through sale rather than through continuing use, if the assets are available for immediate
sale in their present condition and if the sale is highly probable. Immediately before classi¬
fication as "held for sale", the assets are measured in accordance with the company''s ac¬
counting policies. Once classified as "held for sale", the assets are measured at the lower of
their carrying amount and fair value less costs to sell. Any write-downs on initial classifica¬
tion or subsequent remeasurement are recognised in the statement of profit and loss.

On 3rd December, 2013, the company had purchased a flat which was considered as an
investment property. Thereafter, the company wanted to sell this property. On 3rd August
2022, the company entered into an agreement for sale of this property.

Accordingly, the investment property has been classified as "Held for sale" as per Ind AS-105
and measured at lower of carrying amount or fair value less cost to sell. The details of asset
is stated below.

A) Terms / Rights attached to Equity Shares:

Each holder of equity shares is entitled to one vote per share. In the event of liquidation of
the company, the holders of equity shares will be entitled to receive remaining assets of
the Company in proportion to the number of equity shares held by the shareholders, after
distribution of all preferential amounts.

The final dividend on Equity shares is recorded as a liability on the date of approval by the
shareholders and interim dividends are recorded as a liability on the date of declaration
by the Company''s Board of Directors. The company declares and pays dividends after
deducting applicable taxes.

20.1 The final dividend on shares is recorded as a liability on the date of approval by the
shareholders and interim dividends are recorded as a liability on the date of declaration by
the Company''s Board of Directors. Company distributes dividend after deducting applicable
withholding income tax.

20.2 The amount of per-share dividend paid as a distribution to equity shareholders, in
accordance with the Companies Act, 2013, for the following year is as follows:

During the year ended 31st March, 2026, on account of the final dividend for 2024-25 and
interim dividend for 2025-26, the Company has incurred a net cash outflow of 1 270.92
lakh.

The Board of Directors at it meetingon 20th July, 2026, recommended a final dividend
of 1 0.50 per equity share for the financial year ended 31st March, 2026. This payment
is subject to the approval of shareholders in the Annual General Meeting (AGM) of the
company, and if approved, would result in a net cash outflow of approximately 1 258.02
lakh during the financial year 2026-27 and the same will be accounted accordingly.

During the year ended 31st March, 2025, on account of the final dividend for 2023-24 and
interim dividend for 2024-25, the Company has incurred a net cash outflow of 1 182.63
lakh.

Nature and Purpose of Reserves

Retained Earnings: Retained earnings are the profit/ (loss) that the Company has earned/
incurred till date and includes re-measurement loss/ (gain) on defined benefit plans (net of
taxes) that will not be reclassified to Statement of Profit and Loss.

Securities Premium: The amount received in excess of the par value of equity shares has
been classified as securities premium.

*RBI has facilated a regulated digital platform name Trade Receivables Discounting
System (TReDS) that enables MSMEs to convert their trade receivable to cash. CSM
has registered in the TReDS platform as a corporate buyer. The unsecured loan availed
through the TReDS platform consists of loans availed on various dates. The outstanding
balance on reporting date pertains to Punjab National Bank and Bank of Baroda. The
interest on this loan is paid upfront while availing the loan. The principal amount is
repayable at the end of the loan tenure which varies upto 7 months.

As per the bank loan sanction letter for availing Term loan & Working Capital Loans (Sl. 1
to 3) of Punjab National Bank, the interest rates mentioned above are subject to change
in RLLR, change in Bank/RBI guidelines and change in risk profile of the company. The
details of security offered to bank for availaing the loans are given below:

1. PRIMARY SECURITY

(i) For Working Capital:

Hypothecation of receivables /book debts and exclusive charge in all other current assets
both present and future.

(ii) For BG Limit:

General Indemnity & Charge on current assets of the company.

(iii) For Term Loan:

a. Exclusive charge on fixed assets of the company (Present & Future).

b. Equitable mortgage of leasehold IDCO Plot no. E/56, Revenue Plot no. 1(p),
Revenue Khata no. 612, Mouza-Chandrasekharpur, Bhubaneswar.

c. Equitable mortgage of leasehold IDCO Plot no. E/42/H & E/42/I (Vacant Land),
Revenue Plot no. 1(p), Revenue Khata no. 612, Mouza-Chandrasekharpur,
Bhubaneswar.

d. Equitable mortgage of leasehold IDCO Plot no. E/42/J, Revenue Plot no. 1(p),
Khata no. 612, Mouza-Chandrasekharpur, Bhubaneswar.

2. COLLATERAL SECURITY:

Equitable mortgage/ exclusive charge over below mentioned properties.

Hypothecation/mortage of all Block Assets/ Immovable Properties in the name of the
company including the following:

Extension of equitable mortgage of IP (Land & building) of plot no.N3/312, IRC
Village, Jaydev Vihar, Bhubaneswar. Owner of the property is Priyadarshi Pany,
Managing Director.

Extension of equitable mortgage of IP (Land & building) of plot no.62, Sub¬
plot no.57, Khata no. 141, Mouza- Trahi Achyuta Nagar, Thana- Balipatana,
No.4/100, Tahasil- Bhubaneswar, No.391(KA), Dist.- Khordha. Owner of the
property is Priyadarshi Pany, Managing Director.

Fixed deposits comprise 740.79 lakh (present value 743.56 lakh) with Punjab
National Bank and 7120.00 lakh (present value 7120.94 lakh) with ICICI Bank.

3. PERSONAL GUARANTEE:

Personal Guarantee of Shri Priyadarshi Pany, Managing Director and Smt. Sushama Pany,
erstwhile Director.

B. Disaggregation of Revenue :

The Company is primarily engaged in the business of a wide range of Information Technol¬
ogy services relating to software development, software licensing & designing with a
minimal up-gradation which looks into the business need, end-to-end business solu¬
tions, Creation of web enabled applications, web portals, corporate-wide process
integration, business critical application, data warehousing, system integration, turn¬
key projects, e-Governance, community development, system integration technology and
process solutions. The company, therefore, has segments only with regard to geographical
location.

C. Contract Balances

The following table provides information about
receivables from contract with customers:

NOTE 39: EARNINGS PER SHARE (EPS)

Basic EPS amounts are calculated by dividing the profit for the period attributable to ordi¬
nary equity shares by the weighted average number of ordinary shares outstanding during
the year.

Diluted EPS is calculated by dividing the profit attributable to ordinary equity shares by the
weighted average number of ordinary shares outstanding during the year plus the weighted
average number of ordinary shares that would be issued on conversion of all the dilutive
potential ordinary shares into ordinary shares.

#On 9th June, 2025, the Company acquired 90% equity shares in Kwantify Solutions Private
Limited from Shri Priyadarshi Pany. Pursuant to this acquisition, Kwantify Solutions Private
Limited has become a subsidiary of CSM Technologies Limited with effect from the said date.
The Company acquired 1,07,434 fully paid-up equity shares of 310 each at a fair value of 3168
per share.

The purchase consideration was discharged as follows:

Cash consideration of 330,69,360; and

Issue of 34,200 equity shares of 310 each of the Company, at a fair value of 3438 per share,
representing 0.53% of the post-issue equity share capital of CSM Technologies Limited.

NOTE 41: EMPLOYEE BENEFITS

41.1 Defined contribution plans

The Company makes contributions towards provident fund to a defined contribution benefit
plan for qualifying employees. Under the plan, the Company is required to contribute a
specified percentage of basic salary expenses to the benefit plan to fund the benefits.

41.2 Defined benefit plan: Gratuity

The Company makes provision for gratuity as per the Payment of Gratuity Act, 1972. The
amount of gratuity payable on retirement, separation, etc. is based on the respectvie
employee''s last drawn salary and tenure of employment with the company. Gratuity
liability is being contributed to the CSM Technologies Employees Gratuity Trust ("the Trust").
Trustees adminster contributions made to the trust and contribtuitions are invested in a
scheme with the Life Insurance Corporation of India. At the end of every year, the company
carries out acturial valuation of plan assets and the present value of the defined benefit
obligation by an independent Actuary. The present value of the defined benefit obligations
and the related current service cost and past service cost, is measured using the Projected
Unit Credit Method.

Valuations are based on certain assumptions, which are dynamic in nature and vary over
time. As such company is exposed to various risks as follows -

Salary Increases - Actual salary increases will increase the Plan''s liability. Increase in the
rate of salary increase assumption in future valuations will also increase the liability.

Investment Risk - If Plan is funded then assets liabilities mismatch & actual investment
return on assets lower than the discount rate assumed at the last valuation date can impact
the liability.

Discount Rate - Reduction in discount rate in subsequent valuations can increase the plan''s
liability.

Mortality & disability - Actual deaths & disability cases proving lower or higher than
assumed in the valuation can impact the liabilities.

41.3 Defined benefit plan: Leave Encashment

The Company provides for leave encashment benefits in accordance with its leave policy.
Employees are entitled to accumulate and encash unutilized leave balances subject to the
terms and conditions prescribed by the Company. The liability towards leave encashment
is determined on the basis of actuarial valuation carried out at the end of each reporting
period by an independent actuary. The present value of the defined benefit obligation
in respect of accumulated leave is measured using the Projected Unit Credit Method,
considering assumptions relating to salary escalation, employee attrition, mortality and
discount rates. The actuarial gains and losses arising from remeasurements are recognized
in accordance with the applicable Ind AS. The liability recognized in the financial statements
represents the present value of the obligation as at the reporting date.

Valuations are based on certain assumptions, which are dynamic in nature and vary over
time. As such company is exposed to various risks as follows -

Salary Increases - Actual salary increases will increase the Plan''s liability. Increase in the
rate of salary increase assumption in future valuations will also increase the liability.

Investment Risk - If Plan is funded then assets liabilities mismatch & actual investment
return on assets lower than the discount rate assumed at the last valuation date can impact
the liability.

Discount Rate - Reduction in discount rate in subsequent valuations can increase the plan''s
liability.

Mortality & disability - Actual deaths & disability cases proving lower or higher than
assumed in the valuation can impact the liabilities.

NOTE 42 : INFORMATION ON LEASE TRANSACTIONS
PURSUANT TO IND AS 116 - LEASES

Company as a Lessee

The Company''s leases primarily consists of leases for land and office space. Generally, the
contracts are made for fixed periods and does not have a purchase option at the end of the
lease term.

(i) Amounts Recognised in the Balance Sheet

The balance sheet shows the following amounts relating to the leases:

(iv) Short Term Lease

The Company also has certain short term leases terms of 12 months or less. The Company
applies the ''short-term lease'' recognition exemptions for these leases. Expense relating to
short-term leases are disclosed under the head "Rent" in other expenses (Refer Note 36).

(v) Extension and Termination Option

Extension and termination options are included in some of the leases executed by the com¬
pany. These are used to maximise operational flexibility in terms of managing the assets
used in company''s operations. Generally, these options are exercisable mutually by both the
lessor and the lessee.

(vi) There are no restrictions imposed by the lease agreements and there are no sub leases.
There are no contingent rents. The operating lease agreements are renewable on a periodic
basis. Some of these lease agreements have price escalation clause.

(vii) Incremental borrowing rate of 8.66% p.a has been applied for measuring the lease lia¬
bility at the date of initial application.

A. Capital Management

For the purpose of the Company''s capital management, capital includes issued equity capital,
share premium and all other equity reserves attributable to the equity holders of the company.

The primary objective of the Company''s capital management is to maximize 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 on capital to shareholders or issue new shares.

The Company includes within net debt, interest bearing loans and borrowings less cash and
cash equivalents.

The Company monitors capital using a gearing ratio, which is total net debt divided by total
net capital. The gearing ratio is given below:

B. Fair Value Measurement

The Company uses the following hierarchy for determining and/or disclosing the fair value of
financial instruments by valuation techniques:

Level 1: This level includes financial assets that are measured by reference to quoted prices
(unadjusted) in active markets for identical assets or liabilities.

Level 2: This level includes financial assets and liabilities, measured using inputs other than
quoted prices included within Level 1 that are observable for the asset or liability, either
directly (i.e., as prices) or indirectly (i.e., derived from prices).

Level 3: This level includes financial assets and liabilities measured using inputs that are not
based on observable market data (unobservable inputs). Fair values are determined in whole
or in part, using a valuation model based on assumptions that are neither supported by prices
from observable current market transactions in the same instrument nor are they based on
available market data.

The fair value of the financial assets are determined at the amount that would be received to
sell an asset in an orderly transaction between market participants.

There has been no change in the valuation methodology for level 3 inputs during the period.
The Company has not classified any material financial instruments under Level 3 of the fair
value hierarchy. There was no transfers between Level 1 and Level 2 during the year.

NOTE 45 : FINANCIAL RISK MANAGEMENT

The Company''s principal financial liabilities comprise of 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 security deposits, bank
deposits, trade receivables and cash and cash equivalents that derive directly from its
operations. The Company also holds investments in mutual funds.

The Company is exposed to Market risk, Credit risk and Liquidity risk. The Company''s senior
management oversees the management of these risks. The Board of Directors review and
suggest methods for managing each of these risks, which are summarised below. These
directions are established to identify and analyse the risks faced by the Company, to set
appropriate risk limits and controls and to monitor risks and adherence to limits. Such
directions are reviewed regularly to reflect changes in market conditions and the Company''s
activities.

i) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will
fluctuate because of changes in the market prices. The Company is exposed in the ordinary
course of its business to risks related to changes in foreign currency exchange rates and
interest rates.

a) Price Risk

i) Exposure

The Company''s exposure to equity securities prices risk arises from investments held by
the company and classified in the balance sheet at as fair value through OCI & fair value
through Statement of Profit & Loss.

To manage its price risk arising from investments in securities, the company diversifies its
portfolio and diversification is done in limit set by company.

ii) Sensitivity analysis

The table below summarizes the impact of increase/ decrease in the price of instruments
on Profit or loss and Other comprehensive income. The analysis is based on the assumption
that the price of instruments had increased by 5% and decreased by 5% with all others
variable held constant.

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 operating
activities (when revenue or expense is denominated in a foreign currency).

Interest rate risk refers to the risk that the fair value or future cash flows of a financial
instrument will fluctuate because of changes in market interest rates. The Company is
exposed to interest rate risk primarily on account of its borrowings and certain financial
assets that carry variable interest rates.

The Company manages its exposure to interest rate risk by maintaining an appropriate mix
between fixed and floating rate borrowings. The objective of interest rate risk management
is to minimize the impact of fluctuations in market interest rates on the Company''s finance
costs and cash flows.

A change in market interest rates would affect the Company''s finance cost and profit before
tax. Management performs periodic sensitivity analysis to assess the impact of reasonably
possible changes in interest rates on the Company''s financial performance.

The Company believes that its current interest rate risk management practices are adequate
to mitigate the potential adverse impact of interest rate fluctuations on its financial position
and results of operations.

ii) Credit Risk

Credit risk arises when a customer or counterparty does 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 / investing activities, including deposits with banks, mutual fund investments and
foreign exchange transactions. The Company has no significant concentration of credit risk
with any counterparty.

The Company uses a provision matrix to measure the ECLs of trade receivables. 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. Based on evaluation carried out and to the best estimate of management,
historical loss sufficiently covers expected loss as well as future contingencies and adjustment
for forward looking factors are not considered significant, hence no adjustment for forward
looking factors is carried.

Trade receivables: The company''s exposure to credit risk is influenced mainly by the respective
characteristics of each customer. However, management also considers the factors that may
influence the credit risk of its customer base, including the default risk of the industry.

The company establishes an allowance for impairment that represents its expected credit
losses in respect of trade and other receivables. The management uses a simplified
approach for the purpose of computation of expected credit loss for trade receivables.

The company''s receivables can be classified into two categories, one is from the non
Government customers and second is from the Government and quasi Government
customers . As far as receivables from the Government and quasi Government are
concerned, credit risk is Nil.

Collective Provisions: ECL is computed based on the trade receivable as at reporting year
minus specific provision by applying the bucket wise lifetime loss rate (Probability of Defaults)
determined for each reporting year.

iii) Liquidity Risk

Liquidity risk is the risk that the company will encounter difficulty in meeting the obligations
associated with its financial liabilities that are settled by delivering cash or other financial
asset. The company''s approach to managing liquidity is to ensure, as far as possible, that it
will have sufficient liquidity to meet its liabilities when they are fallen due, under both nor¬
mal and stressed conditions, without incurring unacceptable losses or risking damage to the
company''s reputation.

Liquidity risk management implies maintaining sufficient cash and cash equivalents or other
financial assets which can be converted into cash and cash equivalent within a reasonable
period of time.

Management monitors rolling forecasts of the company''s liquidity position on the basis of
expected future cash flows. This is generally carried out in accordance with practice and
limits set by the company. These limits vary by location to take into account requirement,
future cash flow and the liquidity in which the company operates. In addition, the compa¬
ny''s liquidity management strategy involves projecting cash flows and considering the level
of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against
internal and external regulatory requirements and exploring debt financing plans.

The company operates in the software development and implementation services. The
operating segments are based on the products and services offered, as well as geographic
location. Therefore, there are only geographic segments.

In preparing the financial statements as per Ind AS, the management has identified
reportable segments in accordance with Ind AS 108 based on internal reporting reviewed
by the chief operating decision maker. The group''s chief operating decision maker is the
Managing Director. The segment results have been derived by applying reasonable allocation
methods to income and expenses based on available records. These estimates and
assumptions are management''s best assessments, and have been consistently applied.

Notes:

a) Total debt includes both non-current borrowings and current borrowings

b) Earnings Available for debt service = Net profit before taxes Non-cash operating
expenses like depreciation and amortizations Interest Other adjustments like loss on
sale of Property, Plant and Equipment, etc.

c) Debt service = Interest & lease payments Principal payments

d) Capital Employed = Tangible net worth Total debt Deferred Tax Liability

e) Working Capital = Total current assets - Total current liabilities

1. Initial Public Offering (IPO)

Subsequent to the financial year end, the Company successfully completed its Initial
Public Offering (IPO) comprising a fresh issue of 1,29,01,000 equity shares of face value
of 310 each at an issue price of 3113 per equity share, aggregating to 314,578.13 lakhs.

a) The equity shares of the Company were subsequently listed on the National Stock
Exchange of India Limited (NSE) and BSE Limited (BSE) on July 02, 2026.

b) Pursuant to the IPO, the Company received gross proceeds of 314,578.13 lakh.
Transaction costs directly attributable to the issue of new equity shares, excluding
GST to the extent eligible for input tax credit, shall be adjusted against the
Securities Premium Account, net of any related income-tax benefit recognised

in accordance with applicable accounting standards and tax laws. Ineligible or
non-recoverable GST shall form part of the relevant share-issue expenses. Other
IPO-related expenses shall be recognised in the Statement of Profit and Loss, as
applicable.

Since the IPO was completed subsequent to the reporting date, the above transaction has
no impact on the financial position, results of operations, or cash flows of the Company
for the year ended March 31, 2026. Accordingly, the event has been disclosed as a non¬
adjusting event in accordance with Ind AS 10 - Events after the Reporting Period.

2. Proposed Dividend

The Board of Directors, at its meeting held on 20th July, 2026, recommended a final
dividend of 30.50 per equity share for the financial year ended 31st March, 2026. This
is subject to the approval of shareholders at the Annual General Meeting (AGM) of the
Company, and if approved, would result in a cash outflow of approximately 3258.02 lakh
during the financial year 2026-27, which will be accounted for accordingly in that year.

NOTE 50 : OTHER REGULATORY INFORMATION

i. All charges and satisfactions have been duly registered with the Registrar of
Companies, Cuttack within the prescribed statutory period, except for few
instances where the charge creation/ satisfaction was delayed between 3 to
75 days. Such delays were mainly on account of delayed receipt of NOC from
concerned bank.

ii. "The Company has neither given advance nor given loan or invested funds (either
borrowed funds or share premium or any other sources or kind of funds) to any
other person(s) or entity(ies), including foreign entities (Intermediaries) with the
understanding (whether recorded in writing or otherwise) 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."

iii. "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 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."

iv. The Company has no such transaction which is not recorded in the books of
accounts that has been surrendered or disclosed as income during the period 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.

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

vi. The Company has not entered into any transaction during the period with
companies struck off under section 248 of the Companies Act, 2013 or section
560 of Companies Act, 1956.

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

viii. The Company has not been declared as wilful defaulter by any bank or financial
institution (as defined under the Companies Act, 2013) or any other lender or
consortium thereof, in accordance with the guidelines on wilful defaulters issued
by the Reserve Bank of India.

ix. As per Rule 3(1) of Companies (Accounts) Rules, 2014 (as amended), the Company
has used accounting software for maintaining its books of account which, along
with change log management, has a feature of recording audit trail (edit log)
facility in terms of laid down requirements, and the same has operated throughout
the period for all relevant transactions recorded in the accounting software.

NOTE 51 :

The Company has recognised gratuity and leave-encashment obligations for FY 2025-26
based on an actuarial valuation. On November 21, 2025, the Government of India notified
the four labour codes—the Code on Wages, 2019; the Industrial Relations Code, 2020;
the Code on Social Security, 2020; and the Occupational Safety, Health and Working
Conditions Code, 2020—consolidating 29 existing labour laws.

Although the Company operationally implemented the revised payroll and compensation
structure with effect from April 1, 2026, management considered the potential impact
of the revised definition of "wages" under the new labour codes while determining
the gratuity and leave-encashment obligations as at March 31, 2026. Considering the
material and continuing nature of these obligations, management adopted a prudent
approach and recognised the estimated impact based on the actuarial valuation, the draft
rules, relevant FAQs and legal opinions obtained.

Consequently, an incremental employee-benefit obligation of 3273.24 lakh, comprising
3237.38 lakh towards gratuity and 335.86 lakh towards leave encashment relating to past
services, has been recognised in the Statement of Profit and Loss and presented as an
exceptional item due to its material and non-recurring transitional nature.

The revised payroll and compensation structure has been implemented prospectively
from April 1, 2026. The Company continues to monitor the finalisation of the Central and
State Rules and further clarifications issued by the Government and will recognise any
consequential change in estimates in the period in which such developments occur.

NOTE 52 :

Previous years figures have been regrouped/reclassified, where necessary, to conform to
current year''s classification.