(k) Provisions and Contingencies
Provisions

A provision is recognised when the Company has a present obligation (legal or constructive) as a result of
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 amount recognised as
provision is determined based on best estimate of the amount required to settle the obligation at the balance
sheet date. These estimates are reviewed at each reporting date and adjusted to reflect the current best
estimates.

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.

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

Contingent Liabilities & Contingent Assets

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

Contingent assets are not recognized in the financial statements. If the inflow of economic benefits is probable,
then it is disclosed in the financial statements.

Provisions, contingent liabilities, contingent assets and commitments are reviewed at each balance sheet
date.

(l) Employee Benefits(i) Short-term obligations

Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled
wholly within 12 months after the end of the period in which the employees render the related service
are recognised in respect of employees' services up to the end of the reporting period and are measured
at the amounts expected to be paid when the liabilities are settled.

(ii) Other long-term employee benefit obligations

The liabilities for compensated absences that are not expected to be settled wholly within 12 months
are measured as the present value of expected future payments to be made in respect of services
provided by employees up to the end of the reporting period using the projected unit credit method.
Remeasurements as a result of experience adjustments and changes in actuarial assumptions are
recognised in the Statement of Profit and Loss.

The obligations are presented as current liabilities in the balance sheet if the entity does not have
any unconditional right to defer settlement for at least 12 months after the end of the reporting period,
regardless of when the actual settlement is expected to occur.

(iii) Post-employment obligations

The Company operates the following post-employment schemes:

(a) defined benefit plans such as gratuity and

(b) defined contribution plans such as superannuation scheme, provident fund.

Gratuity Obligations

The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plans is the
present value of the defined benefit obligation at the end of the reporting period less the fair value of
plan assets. The defined benefit obligation is calculated annually by actuaries using the projected unit
credit method.

The present value of the defined benefit obligation is determined by discounting the estimated future
cash outflows by reference to market yields at the end of the reporting period on government bonds
that have terms approximating to the terms of the related obligation.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit
obligation and the fair value of plan assets. This cost is included in employee benefit expense in the
Statement of Profit and Loss.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial
assumptions are recognised in the period in which they occur, directly in other comprehensive income.

Defined Contribution plans

Defined Contribution Plans such as superannuation scheme, provident fund are charged to the
statement of profit and loss as an expense, when an employee renders the related services. If the
contribution payable to scheme for service received before the balance sheet date exceeds the
contribution already paid, the deficit payable to the scheme is recognised as liability after deducting
the contribution already paid. If the contribution already paid exceeds the contribution due for services
received before the balance sheet date, then excess is recognised as an asset.

(m) 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 decision about the resources allocation and performance

assessment. Segment performance is evaluated based on the profit or loss and is measured consistently
with profit or loss in the financial statements. The operating segments have been identified on the basis of the
nature of products/ services.

(n) Cash and Cash Equivalents

For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on
hand, demand deposits with banks, other short-term highly liquid investments with original maturities of three
months or less that are readily convertible to known amounts of cash and which are subject to an insignificant
risk of changes in value.

(o) Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax
is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future
cash receipts or payments. The cash flows from operating, investing and financing activities of the Company
are segregated based on the available information.

(p) Earnings Per Share

Basic earnings per share

Basic earnings per share are calculated by dividing:

• the profit attributable to owners of the Company.

• by the weighted average number of equity shares outstanding during the financial year.

Diluted earnings per share

Diluted earnings per share adjust the figures used in the determination of basic earnings per share to take
into account:

• the after income tax effect of interest and other financing costs associated with dilutive potential equity
shares, and

• the weighted average number of additional equity shares that would have been outstanding assuming
the conversion of all dilutive potential equity shares.

(q) Non-current assets held for sale

The Company classifies non-current assets as held for sale if their carrying amounts will be recovered
principally through a sale rather than through continuing use. Such non-current assets classified as held for
sale are measured at the lower of their carrying amount and fair value less costs to sell. Any expected loss is
recognised immediately in the Statement of Profit and Loss.

The criteria for “held for sale” classification is regarded as met only when the sale is highly probable i.e.
an active program to locate a buyer to complete the plan has been initiated and the asset is available for
immediate sale in its present condition and the assets must have actively marketed for sale at a price that
is reasonable in relation to its current fair value. Actions required to complete the sale should indicate that
it is unlikely that significant changes to that plan to sale these assets will be made. Management must be
committed to the sale, which should be expected to qualify for recognition as a completed sale within one
year from the date of classification.

Property, plant and equipment and intangible assets once classified as held for sale are not depreciated or
amortised. Assets and liabilities classified as held for sale are presented separately as current items in the
balance sheet.

(r) Dividend distribution to equity shareholders

Dividend distributed to Equity shareholders is recognised as distribution to owners of capital in the Statement
of Changes in Equity, in the period in which it is paid.

Final dividend on shares are 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.

(s) Foreign currencies

The financial statements are presented in Indian Rupee (Rs.), which is Company's functional and presentation
currency.

Transactions in foreign currencies are recognised at the prevailing exchange rates on the transaction dates.
Realised gains and losses on settlement of foreign currency transactions are recognised in the statement of
profit and loss.

Monetary foreign currency assets and liabilities at the year-end are translated at the year-end exchange rates
and the resultant exchange differences are recognised in the statement of profit and loss.

(t) Revenue Recognition

The Company mainly deals in manufacture of special alloy steel/ stainless steel, billets, bars, rods, wire
rods, EOT cranes, material handling equipment, other industrial machinery, rendering of comprehensive
engineering services and construction engineering services.

Revenue is recognized on satisfaction of performance obligation upon transfer of control of promised goods
or services to customers in an amount that reflects the consideration which Company expects to receive in
exchange for those products or services.

Revenue is measured based on the transaction price, which is the consideration, adjusted for volume
discounts, rebates, scheme allowances, price concessions, incentives, and returns, if any, as specified in the
contracts with the customers. Revenue excludes taxes collected from customers on behalf of the government.

Revenue from sale of products and services is recognised at a time when the performance obligation is
satisfied except Revenue from Engineering Contracts wherein revenue is recognized over the time from the
financial year in which the agreement to sell (containing salient terms of agreement to sell) is executed. The
period over which revenue is recognised is based on entity's right to payment for performance completed.

In determining whether Company has right to payment, the Company shall consider whether it would have
an enforceable right to demand or retain payment for performance completed to date if the contract were to
be terminated before completion for reasons other than Company's failure to perform as per the terms of the
contract.

The revenue recognition of Engineering Contracts under progress requires forecasts to be made of total
budgeted costs with the outcomes of underlying contracts, which further require assessments and judgements
to be made on changes in scope of work and other payments to the extent they are probable and they
are capable of being reliably measured. However, where the total project cost is estimated to exceed total
revenues from the project, the loss is recognized immediately in the statement of profit and loss.

Revenue from Engineering Contracts where the performance obligations are satisfied over time and
where there is no uncertainty as to measurement or collectability of consideration, is recognized as per the
percentage of completion method. When there is uncertainty as to measurement or ultimate collectability,
revenue recognition is postponed until such uncertainty is resolved. Revenues in excess of invoicing are
classified as contract assets (which is referred to as unbilled revenue) while invoicing in excess of revenues
are classified as contract liabilities (which is referred to as unearned revenues). The billing schedules agreed
with customers include periodic performance based payments and / or milestone based progress payments.
Invoices are payable within contractually agreed credit period.

Engineering Contracts are subject to modification to account for changes in contract specification and
requirements. The Company reviews modification to contract in conjunction with the original contract, basis
which the transaction price could be allocated to a new performance obligation or transaction price of an
existing obligation could undergo a change. In the event, transaction price is revised for existing obligation, a
cumulative adjustment is accounted for.

The Company satisfies a performance obligation and recognises revenue over time, if one of the following
criteria is met:

1. The customer simultaneously receives and consumes the benefits provided by the Company's
performance as the Company performs; or

2. The Company's performance creates or enhances an asset that the customer controls as the asset is
created or enhanced; or

3. The Company's performance does not create an asset with an alternative use to the Company and
Company has an enforceable right to payment for performance completed to date.

In case of performance obligations, where any of the above conditions is not met, revenue is recognised at the point
in time at which the performance obligation is satisfied.

Export incentives:

Export Incentives under various schemes are accounted in the year of export.

Interest Income:

Interest income accrues on a time proportion basis, by reference to the principal outstanding and the effective
interest rate applicable.

Dividend Income:

Dividend income from investments is recognised when the shareholder's right to receive the payment has
been established.

(u) Exceptional Items:

Exceptional items are disclosed separately in the financial statements where it is necessary to do so to
provide further understanding of the financial performance of the Company. These are material items of
income or expense that have to be shown separately due to the significance of their nature or amount.

(v) Events after the reporting period:

Adjusting events are events that provide further evidence of conditions that existed at the end of the reporting
period. The financial statements are adjusted for such events before authorisation for issue.

Non-adjusting events are events that are indicative of conditions that arose after the end of the reporting
period. Non-adjusting events after the reporting date are not accounted but disclosed.

(w) Business combination:

Business combinations involving entities or businesses under common control are accounted for using the
pooling of interest method. Under pooling of interest method, the assets and liabilities of the combining entities
or businesses are reflected at their carrying amounts after making adjustments necessary to harmonise the
accounting policies. The financial information in the financial statements in respect of prior periods is restated
as if the business combination had occurred from the beginning of the preceding period in the financial
statements, irrespective of the actual date of the combination. The identity of the reserves is preserved in
the same form in which they appeared in the financial statements of the transferor and the difference, if any,
between the amount recorded as share capital issued plus any additional consideration in the form of cash
or other assets and the amount of share capital of the transferor is transferred to capital reserve.

(x) Significant accounting estimates, judgements and assumptions:

The preparation of the Company's financial statements in conformity with Ind AS 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. The estimates and associated assumptions

are based on historical experience and various other factors that are believed to be reasonable under
the circumstances existing when the financial statements were prepared. The estimates and underlying
assumptions are reviewed on an ongoing basis. Revision to accounting estimates is recognised in the year
in which the estimates are revised and in any future year affected.

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

i. Useful lives of property, plant and equipment:

Determination of the estimated useful life of tangible assets and the assessment as to which components
of the cost may be capitalised. Useful life of tangible assets is based on the life specified in Schedule II
of the Act and also as per management estimate for certain category of assets. Assumption also needs
to be made, when Company assesses, whether an asset may be capitalised and which components of
the cost of the assets may be capitalised.

ii. Use of significant judgements in revenue recognition:

• The Company's contracts with customers could include promises to transfer multiple products
and services to a customer. The Company assesses the products / services promised in a
contract and identifies distinct performance obligations in the contract. Identification of distinct
performance obligation involves judgement to determine the deliverables and the ability of the
customer to benefit independently from such deliverables.

• The Company exercises judgement in determining whether the performance obligation is satisfied
at a point in time or over a period of time. The Company considers indicators such as how
customer consumes benefits as services are rendered or who controls the asset as it is being
created or existence of enforceable right to payment for performance to date and alternate use
of such product or service, transfer of significant risks and rewards to the customer, acceptance
of delivery by the customer, etc.

• Judgement is also required to determine the transaction price for the contract. The transaction price
could be either a fixed amount of customer consideration or variable consideration with elements
such as volume discounts, service level credits, performance bonuses, price concessions and
incentives. The transaction price is also adjusted for the effects of the time value of money if the
contract includes a significant financing component. Any consideration payable to the customer
is adjusted to the transaction price, unless it is a payment for a distinct product or service from
the customer.

• Revenue from Engineering Contracts is recognised using percentage-of-completion method.
The Company uses judgement to estimate the future cost-to-completion of the contracts which is
used to determine the degree of completion of the performance obligation.

iii. Fair value measurement of financial instruments:

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

iv. Defined benefit plan:

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.

v. Allowances for uncollected accounts receivables:

Trade receivables are stated at their normal value as reduced by appropriate allowances for estimated
irrecoverable amounts. Individual trade receivables are written off when management deems them
not collectable. Impairment is made on the expected credit loss model, which are the present value of
the cash shortfall over the expected life of the financial assets. The impairment provisions for financial
assets are based on assumption about the risk of default and expected loss rates. Judgement in
making these assumptions and selecting the inputs to the impairment calculation are based on past
history, existing market condition as well as forward looking estimates at the end of each reporting
period.

vi. Allowance for inventories:

Management reviews the inventory age listing on a periodic basis. This review involves comparison of
the carrying value of the aged inventory items with the respective net realizable value. The purpose is
to ascertain whether an allowance is required to be made in the financial statements for any obsolete
and slow-moving items. Management satisfies itself that adequate allowance for obsolete and slow-
moving inventories has been made in the financial statements.

vii. Impairment of non-financial assets:

The Company assesses at each reporting date whether there is an indication that an asset may be
impaired. If any indication exists, the Company estimates the asset's recoverable amount. An asset's
recoverable amount is the higher of an asset's or Cash Generating Units (CGU's) fair value less costs
of disposal and its value in use. It is determined for an individual asset, unless the asset does not
generate cash inflows that are largely independent of those from other assets or a group of assets.
Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered
impaired and is written down to its recoverable amount.

In assessing value in use, the estimated future cash flows are discounted to their present value using
pre-tax discount rate that reflects current market assessments of the time value of money and the risks
specific to the asset. In determining fair value less costs of disposal, recent market transactions are
taken into account, if no such transactions can be identified, an appropriate valuation model is used.

viii. Contingencies:

Management judgement is required for estimating the possible outflow of resources, if any, in respect of
contingencies/ claim/ litigation against Company as it is not possible to predict the outcome of pending
matters with accuracy.

ix. Leases:

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 (e.g.,
construction of significant leasehold improvements or significant customisation to the leased asset).

x. Provision for income tax and deferred tax assets:

The Company's tax jurisdiction is India. Significant judgements are involved in estimating budgeted
profits for the purpose of paying advance tax, determining the provision for income taxes, including
amount expected to be paid/recovered for uncertain tax positions. A deferred tax asset is recognised
to the extent that it is probable that future taxable profit will be available against which the deductible
temporary differences and tax losses can be utilised. Deferred tax assets are recognised for unused

tax losses to the extent that it is probable that taxable profit will be available against which the losses
can be utilised. Significant management judgement is required to determine the amount of deferred
tax assets that can be recognised, based upon the likely timing and the level of future taxable profits
together with future tax planning strategies. Accordingly, the Company exercises its judgement to
reassess the carrying amount of deferred tax assets at the end of each reporting period.

(xi) 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. In May 2025, MCA notified
amendments to Ind AS 21 - The Effects of Changes in Foreign Exchange Rates, applicable w.e.f. April 1,
2025. The Company has reviewed the amendment and based on its evaluation has determined that it has
no impact in its financial statements. In August 2025, MCA notified the following amendments to: 1. Ind AS 1,
Presentation of Financial Statements, applicable w.e.f April 1,2025 - 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.

Ind AS 7, Statement of Cash Flows and Ind AS 107, Financial Instruments - Disclosures, applicable w.e.f April
1,2025 - 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. 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 has no impact in its financial statements.

Ind AS 12, 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. The Company has reviewed the amendment and based on its evaluation has determined
that it has no impact on its financial statements.

Standards issued but not vet effective

Treatment to Lendor Waiver - Amendments to Ind AS 1 — This amendment also includes specific provisions
that will take effect for reporting periods beginning on or after 1 April 2026, retrospectively. These provisions
relate to the treatment of lender waivers granted after the reporting date but before the financial statements
are approved for issue. Under the amended requirements, such waivers will no longer be permitted to be
considered for the purpose of classification of loans. The Company does not expect this amendment to have
an impact on its financial statements.

OTHER NOTES:

(i) Property, plant and equipment are free from any encumbrances.

(ii) Refer Note No. 38(b) for disclosure of contractual commitments for the acquisition of property, plant and
equipment.

(iii) Gross Block of Buildings as at March 31,2026 includes value of offices, residential flats and garages in co¬
operative societies/proposed co-operative societies/association of apartment owners aggregating Rs. 2.50
crore at cost (March 31,2025 - Rs. 2.50 crore) [including cost of shares in co-operative societies Rs.500 /-
(March 31,2025- Rs.500/-)].

(iv) Property Plant & Equipment include borrowing costs of Rs. 1.97 crore capitalised during the year (March 31,
2025 Rs. 2.33 crore), rate of capitalisation 7.96% (Previous Year 8.53%).

(v) Capital work in progress comprises of Property, Plant & Equipment under construction and pre-operative
expenses & interest pending allocation.

(vi) The Company has not revalued any of its property, plant and equipment including right of use assets or
intangible assets.

(vii) The Company does not hold any Benami Property and does not have any proceedings initiated or pending
for holding benami property under the Prohibition of Benami Property Transactions Act, 1988 and the rules
made thereunder.

(viii) All immovable properties are held in the name of the Company.

Short Term Loans and Advances, Trade Receivables, non-current investments etc.

(b) For details of loans and advances given to related parties, please refer Note No. 40.

(c) There are no loans or advances in the nature of loans granted to Promoters, Directors, KMP's and their related
parties (as defined under Companies Act,2013) either severally or jointly with any other person, that are:

(i) repayable on demand ; or

(ii) without specifying any terms or period of repayment.

(d) 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:

(i) 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

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

(e) 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:

(i) 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

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

(b) Terms / rights attached to equity shares:

The Company has only one class of equity share having a par value of Rs. 10/- per share. Each holder of
equity share is entitled to one vote per share. The Company declares and pays dividend in Indian rupees in
accordance with its dividend distribution policy.

The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing
Annual General Meeting, except in case of interim dividend. The Board of Directors in its meeting held on
May 14, 2026 recommended a dividend on equity shares at Rs.3 per share (including Re 1 per share as
special dividend) for financial year 2025-26.

During the year ended 31 March 2026, the amount of dividend per share recognized as distribution to equity
shareholders was Rs. 2.00 per share as recommended by the Board of Directors in its meeting held on May
16, 2025 and approved by the Shareholders at its meeting held on August 08, 2025.

The Dividend paid for the previous year and proposed for the current year is in compliance with Section 123
of the Act.

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.

(c) The Company does not have any holding company.

(d) Details of shareholders holding more than 5% shares in the Company

After the demise of Shri Madhur Bajaj on April 11,2025:

*Shareholding of Trust transferred to Nimisha Jaipura Trust and Neelima Bajaj Swamy Trust A/c.

**20462 shares held by Shri Madhur Bajaj transferred to Ms. Kumud Bajaj.

#238711 shares held by Madhur Bajaj (A/c. Nimisha Bajaj Family Trust) transferred to Kumud Bajaj (A/c.
Nimisha Bajaj Family Trust)

(g) There are no shares reserved for issue under options and contracts / commitments for sale of shares/
disinvestment.

(h) There are no unpaid calls from any Director and officer.

(i) As per records of the Company, including its register of shareholders / members and other declarations
received from shareholders regarding beneficial interest, the above shareholding represents both legal and
beneficial ownerships of shares.

(j) There are no bonus share issued nor any share bought back during the period of five years immediately
preceding the reporting date During the previous year Shares were alloted for consideration other than cash
under the scheme of Amalgamation.

1. Capital Reserve

Capital Reserve is created by the Company on Account of Slump-sale during FY2025-26 , Refer Note No. 50.
During the previous year 2024-25, Capital Reserve was created on Account of Scheme of Arrangement with
Mukand Sumi Metal Processing Limited.

2. Capital Redemption Reserve

Capital Redemption Reserve is created by the Company for redemption of preference share from its profits.

3. Securities Premium

Securities premium is received from the shareholders of the Company on issue of shares. The reserve is
utilised as per the provisions of the Companies Act, 2013.

4. General Reserves

General Reserves is created out of net profits of the Company by way of appropriation of profits.

5. Retained Earnings

Retained Earnings are the balance (debit /credit) in the statement of profit and loss.

b Shareholding of the Promoters in 8% CRPS is as shown above

As per records of the Company, including its register of shareholders / members and other declarations
received from shareholders regarding beneficial interest, the above shareholding represents both legal and
beneficial ownerships of shares.

(II) The Board of Directors in its meeting held on May 14, 2026 recommended a dividend at 8% on CRPS for
financial year 2025-26. Since aforesaid CRPS has been classified as financial liability, the amount of dividend
has been shown as finance cost.

During the year ended 31 March 2026, the amount of CRPS dividend recognized as distribution to CRPS
holders was at 8% as recommended by the Board of Directors in its meeting held on May 16, 2025 and
approved by the shareholders at its meeting held on August 08, 2025.

(III) For details of loans received from related parties, refer Note No. 40.

(IV) The Company has not defaulted in the payment of interest and installments of the loans as at 31st March
2026.

(V) During the year, Company has not created/ modified any charge with the Registrar of Companies.

(37) CAPITAL MANAGEMENT

The primary objective of the Company's capital management is to ensure that it maintains an efficient capital
structure and maximize shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic
conditions, annual operating plans,long term and other strategic investment plans. In order to maintain or
adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders or issue
new shares. No changes were made in the objectives, policies or processes for managing capital during the
year ended March 31,2026 and March 31,2025.

The Company monitors capital using a ratio of ‘adjusted net debt' to ‘equity'. For this purpose, adjusted
net debt is defined as total liabilities, comprising interest-bearing loans and borrowings less cash and cash
equivalents and Current Investments. Equity comprises all components of equity including share premium
and all other equity reserves attributable to the equity share holders.

(vi) A claim towards difference in price of calibrated iron ore for the period 1st April, 2006 to 28th
February, 2007 amounting to Rs.33.07 crore has been raised by a supplier in March 2007. The
Company has been legally advised that the supplier cannot seek this price revision under a
concluded agreement and hence no provision is made in the Accounts for the same. The issue
along with method of review and re-fixing of price of calibrated iron ore effective on 1st of April each
year in terms of agreement is referred to an arbitral tribunal whose award was pronounced on 28th
February 2014. In terms of the said award, the supplier is directed to re-compute amount payable
by the Company. The supplier has revised the claim amount in December 2020 to Rs. 19.71 crore.
Moreover, the said supplier has also increased the price of calibrated iron ore w.e.f. 1st April,
2007 and thereafter w.e.f. 1st April, every year. This issue too was settled by the aforesaid arbitral
tribunal. However, pending such determination of final price, the supplier has raised invoices at
an ad-hoc interim mutually agreed price on the marketing contractor who in turn, has billed the
Company at the same price and the liability, has been fully accounted for. An appeal preferred for
challenging the said arbitration award was rejected by the City Civil Court in January 2019. The
marketing contractor has gone in appeal against the decision of the City Civil Court before the High
Court of Karnataka. The appeal is pending for disposal.

(d) The Company had, during the Financial Year 1998-99, entered into a strategic alliance with Kalyani
Steels Limited to set-up a steel plant to be operated by a company - Hospet Steels Limited.

Expenses and liabilities arising out of this alliance to Hospet Steels Limited are shared on the basis
stipulated in the relevant Agreements, and its accounting in the books of the Company is carried out,
accordingly.

Wherever, due to the terms of the alliance, estimations are required to be made in respect of expenses,
liabilities, production, etc., the same have been relied upon by the auditors, being technical matters.

40 Related Party Disclosures(a) Relationship :

(i) Subsidiaries:

Mukand Sumi Metal Processing Limited (MSMPL), Mukand Heavy Engineering Limited (MHEL)

(ii) Associate:

Bombay Forgings Limited (BFL)

(iii) Joint Venture :

Hospet Steels Limited (HSL)

(iv) Key Management Personnel:

Niraj Bajaj, Prakash Vasantlal Mehta (till 08th August, 2024) , Sankaran Radhakrishnan , Bharti
Ram Gandhi (till 10th February, 2025), Amit Yadav (till 9th November, 2024) , Arvind M Kulkarni,
Nirav Bajaj, Prem Kumar Chandrani (wef 10th September, 2024), Tasneem Mehta (wef 10th
February, 2025) & Other KMPs, Relatives of a Director/ Other KMPs.

(v) Other related parties where significant influence exists or where the related party has
significant influence on the Company :

Kalyani Mukand Ltd., Jamnalal Sons Pvt. Ltd., Baroda Industries Pvt. Ltd.,

Sidya Investment Ltd, Bachhraj & Company Pvt. Ltd, Bachhraj Factories Pvt. Ltd, Mukand Sumi
Special Steel Ltd,

Bajaj Sevashram Pvt. Ltd, Kamalnayan Investment & Trading Pvt Ltd ,Rahul Securities Pvt. Ltd,
Niraj Holding Pvt. Ltd

Madhur Securities Pvt. Ltd, Shekhar Holding Pvt. Ltd, Bajaj General Insurance Co Ltd., Bajaj
Finserv Asset Management Ltd.,

Hind Musafir Agency Ltd, Bajaj Finserv Ltd., Hindustan Housing Co. Ltd, Other Promoter group
(Refer note 17).

(vi) The Company holds more than 20% in T P Samaksh Limited . However, the Company does
not exercise significant influence or control on decisions of the investees. Hence, it is not being
construed as associate company. This investment is included in “Note 4A: Investments” under
Non-current Investment.

(42) In accordance with Indian Accounting Standard - 108 “Segment Reporting”, segment information has been
given in the consolidated financial statements of the Company, and therefore, no separate disclosure on
segment information is given in these financial statements.

(43) EMPLOYEE BENEFITS
Defined contribution plans

The Company contributes on a defined contribution basis to employees' provident fund and superannuation
fund. Contributions are made to provident fund in India for employees at the rate of 12% of basic salary as
per regulations. The contributions are made to registered provident fund (an exempted Trust). The obligation
of the Company is limited to the amount contributed and it has no further contractual nor any constructive
obligation.

Defined benefit plans
Compensated Leave

The leave obligations cover the Company's liability for earned leave and sick leave. The compensated
absences charged in the Statement of Profit and Loss for the year ended March 31,2026 based on actuarial
valuation is Rs.0.10 Crore (previous year Rs. 0.05 crore).

Gratuity

The Company provides for gratuity for employees as per Company's Scheme/s. Employees who are
in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on
retirement/termination is based on the employees last drawn basic salary, special allowance and dearness
allowance per month and as per the Schemes applicable to those employees from time to time. The gratuity
plan is a funded plan. The scheme is funded with Life Insurance Corporation in the form of a qualifying
insurance policy.

The actuarial valuation of the defined benefit obligation(DBO) was carried out at the balance sheet date. The
present value of the defined benefit obligations and the related current service cost and past service cost
were measured using the Projected Unit Credit Method.

Based on the actuarial valuation obtained in this respect, the following table sets out the details of the
employee benefit obligation as at balance sheet date:

2 Sensitivity analysis method

Sensitivity analysis is performed by varying a single parameter while keeping all the other parameters
unchanged. Sensitivity analysis fails to focus on the interrelationship between underlying parameters.
Hence, the results may vary if two or more variables are changed simultaneously. The method used does
not indicate anything about the likelihood of change in any parameter and the extent of the change if any.

Notes:

a) The rate used to discount post employment benefit obligations is determined by reference to market
yields at the end of the reporting period on government bonds.

b) The estimates of future salary increases considered in the actuarial valuation take account of inflation,
seniority, promotion and other relevant factors, such as supply and demand in the employment market.

c) The gratuity fund is managed by Life Insurance Corporation of India and details of fund invested by
insurer are not available with Company.

d) The Company expects to make a contribution of Rs. 6.00 Crore to the defined benefit plans (gratuity -
funded) during the next financial year.

e) The average duration of the defined benefit plan obligation at the end of the reporting period is 6 years.
Risk exposure

Valuations are performed on certain basic set of pre-determined assumptions and other regulatory
frame work which may vary over time. Thus, the Company is exposed to various risks in providing the
above gratuity benefit which are as follows:

Interest Rate risk: The plan exposes the Company to the risk of fall in interest rates. A fall in interest
rates will result in an increase in the ultimate cost of providing the above benefit and will thus result in
an increase in the value of the liability (as shown in financial statements).

Liquidity Risk: This is the risk that the Company is not able to meet the short-term gratuity payouts.
This may arise due to non-availability of enough cash / cash equivalent to meet the liabilities or holding
of illiquid assets not being sold in time.

Salary Escalation Risk: The present value of the defined benefit plan is calculated with the assumption
of salary increase rate of plan participants in future. Deviation in the rate of increase of salary in future
for plan participants from the rate of increase in salary used to determine the present value of obligation
will have a bearing on the plan's liability

Demographic Risk: The Company has used certain mortality and attrition assumptions in valuation of
the liability. The Company is exposed to the risk of actual experience turning out to be worse compared
to the assumptions.

Regulatory Risk: Gratuity benefit is paid in accordance with the requirements of the Payment of
Gratuity Act,1972 (as amended from time to time) and Company's Schemes for different category of
employees. There is a risk of change in regulations requiring higher gratuity payouts.

Asset Liability Mismatching or Market Risk: The duration of the liability is longer compared to
duration of assets, exposing the Company to the market risk for volatilities/fall in interest rate.

Investment Risk: The probability or likelihood of occurrence of losses relative to the expected return
on any particular investment.

B. Measurement of fair value

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

a) The carrying amounts of trade receivables, trade payables, deposits, other receivables, cash and
cash equivalent including other current bank balances and other liabilities including deposits,
creditors for capital expenditure, etc. are considered to be the same as their fair values, due to
current and short term nature of such balances.

b) Financial instruments with fixed and variable interest rates are evaluated by the Company based
on parameters such as interest rates and individual credit worthiness of the counterparty. Based
on this evaluation, allowances if required, are taken to account for expected losses of these
receivables.

c) The fair value of the Equity Investments which are quoted, are derived from quoted market prices
in active market.

d) The fair values of investments in mutual fund units is based on the net asset value (‘NAV') as
stated by the issuers of these mutual fund units in the published statements as at Balance Sheet
date. NAV represents the price at which the issuer will issue further units of mutual fund and the
price at which issuers will redeem such units from the investors.

C. Fair Value Hierarchy

The fair value of financial instruments as referred to above have been classified into three categories
depending on the inputs used in the valuation technique. The hierarchy gives the highest priority to
quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and lowest
priority to unobservable inputs (Level 3 measurements).

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes
listed equity instruments and mutual funds that have quoted price. The fair value of all equity instruments
which are traded in the stock exchanges is valued using the closing price as at the reporting period.
Level 2: The fair value of financial instruments that are not traded in an active market is determined
using valuation techniques which maximise the use of observable market data 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 included in level 3.

(47) FINANCIAL RISK MANAGEMENT

The process of identification and evaluation of various risks inherent in the business environment and the
operations of the Company and initiation of appropriate measures for prevention and/or mitigation of the
same are dealt with by the concerned operational heads under the overall supervision of the Managing
Director of the Company. The Audit Committee periodically reviews the adequacy and efficacy of the overall
risk management system. The Company's financial risk management is an integral part of how to plan
and execute its business strategies. The Company has in place adequate Internal Financial Controls with
reference to financial statements and such internal financial controls are operating effectively. The Company
has adopted policies and procedures for ensuring the orderly and efficient conduct of its business, including
adherence to the Company's policies, the safeguarding of its assets, prevention and detection of frauds
and errors, accuracy and completeness of accounting records and timely preparation of reliable financial
statements.

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

• Credit risk

• Liquidity risk

• Market risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial
instrument fails to meet its contractual obligations and arises principally from the Company's trade
and other receivables. The carrying amounts of financial assets represent the maximum credit risk
exposure.

i Trade and Other receivables

The Company is recording the allowance for expected credit losses for all financial assets not held at
FVTPL,togetherwithloancommitmentsandfinancialguaranteecontracts,(inthissectionallreferred
to as ‘financial instruments'). Equity instruments are not subject to impairment under IND AS 109.
The ECL allowance is based on:

a) 12 months' expected credit loss (12mECL) where there is no significant increase in credit
risk since origination and;

b) on the credit losses expected to arise over the life of the asset (the lifetime expected credit
loss or LTECL).

The 12mECL is the portion of LTECL that represents the ECL that results from default
events on a financial instrument that are possible within the 12 months after the reporting
date.Both LTECL and 12mECL are calculated on individual and collective basis, depending
on the nature of the underlying financial assets. The Company has established a policy
to perform an assessment, at the end of each reporting period, of whether a financial
instrument's credit risk has increased significantly since initial recognition.

Based on the above process, the Company groups its Financial assets into Stage 1, Stage
2, Stage 3, as described below:

Stage 1 : When financial assets are first recognised, the Company recognises an allowance
based on 12mECL. Stage 1 loans also include facilities where the credit risk has improved
and the loan has been reclassified from Stage 2 or Stage 3.

Stage 2: When a financial assets has shown a significant increase in credit risk since
origination, the company records an allowance for the LTECL. Stage 2 financial assets,
where the credit risk has improved and the loan has been reclassified from Stage 3.
Stage 3: Loans considered credit-impaired. The Company records an allowance for the
LTECL.

iii Cash and bank balances

The Company held cash and cash equivalent and other bank balance of Rs. 19.50 crores at
March 31,2026 (March 31,2025: Rs 25.60 crores). The same are held with banks having good
credit rating.

B 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 another 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 due, under both normal and stressed conditions, without incurring unacceptable losses or risking
damage to the Company's reputation.

Management monitors rolling forecasts of the Company's liquidity position and cash and cash equivalents on
the basis of expected cash flows.

Maturities of financial liabilities

A The following are the remaining contractual maturities of financial liabilities at the reporting date. The
amounts are gross and undiscounted.

Market risk is the risk that changes in market prices, such as interest rates (interest rate risk), will affect
the company's income. The objective of market risk management is to manage and control market risk
exposures within acceptable parameters, while optimising the return.

D Interest rate risk

Interest rate risk is the risk that the fair value or future cashflows 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 obligation at floating interest rates.
The company's fixed rate borrowings are carried at amortised cost. They are therefore not subject to
interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows
will fluctuate because of a change in market interest rates.

a Interest rate risk exposure

The exposure of the Company's borrowing to interest rate changes at the end of the reporting period
are as follows:

E Foreign Exchange Risk:

Foreign exchange risk arises on future commercial transcations and on all recognised monetary assets
and liabilities, which are denominated in a currency other than the functional currency of the Company.
The Company's management has set a policy wherein exposure is identified, a benchmark is set
and monitored closely and accordingly suitable hedges are taken. The Company's foreign currency
exposure arises mainly from foreign exchange imports and exports primarily with respect to USD and
EURO. Additionally, there are transaction which are entered into in other currencies are not significant
in relation to total volume of the foreign currency exposures.

Note :

(a) The leverage ratios have marginally improved due to increase in profitability and debt at the same level
of the previous year.

(b) The Working Capital ratios have increased primarily due to increase in working capital during the year .

(c) The profitability ratios have improved primarily due to increase in Other Income.

(d) DSCR was improved primarily due to increase in Other Income .

(e) Return on Investment has increased primarily due to increase in fair value of Investment in Industrial
Machinery Division.

(f) The figures considered for computing ratios are after giving effect of Slump Sale Transaction and are
for Continuing Operations only. (Refer note no 50).

49 I Disclosure of transaction with struck off companies

The following table depicts details outstanding in respect of transaction undertaken with the company
struck off under section 248 of the Companies Act, 2013, holding equity shares in the company :-

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

III The Company have no such transaction which is not recorded in the books of accounts that has been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act,
1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

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

V The Government of India has implemented four new labour codes (“Codes”) including the code on
Wages, 2019, w.e.f. 21st November 2025. The Company has given effect of Gratuity and Leave
Encashment considering uniform definition of “wages” as per the Code on Wages in standalone
financial results for the year ended 31st March 2026. The Government of India has notified the related
rules under the New Labour Codes on 8th May, 2026. The Company is in the process of evaluating
impact of these Rules and pending State Rules and other aspects of Labour Code, would provide
appropriate accounting effects on the basis of such developments as and when needed.

VI Disclosure with respect to monthly / quarterly statement of Current assets filed with bank.

The Company has not availed any secured loans facilities from bank, hence the company is not required
to file monthly/quarterly returns or statements with the banks.

VII In view of the aggregate losses as calculated in accordance Sec 135 and 198 of the companies
Act,2013 during last 3 years immediately preceding financial years,the company is not required to incur
any expenditure in pursuance of the CSR policy for the FY 2025-26. (Previous year : NIL).

50 Discontinued Operations

The Board of Directors of the Company in its meeting held on May 16, 2025 approved sale and transfer
of part of Industrial Machinery Division namely designing, manufacturing, Erection and Commissioning of
EOT Cranes, other material handling and process plant equipment activities of the Company (“Business”)
on a going concern basis by way of slump sale to Mukand Heavy Engineering Limited (“MHEL”), a wholly
owned subsidiary of the Company, through execution of Business Transfer Agreement (“BTA”). The BTA was
executed on October 18, 2025. The slump sale has been completed on March 31,2026, after the closing
hours against the receipt of purchase consideration of Rs. 45.78 crore discharged in the form of 26,347 equity
shares fully paid up, issued and allotted by MHEL. The difference, being the surplus of value of purchase
consideration received over net assets (i.e., the value of assets over the value of the liabilities) transferred to
MHEL pursuant to the slump sale, has been credited to Capital Reserve.