(D) Terms/Rights attached to equity shares

The Company has only one class of equity shares having a face value of H 2 /- each. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the Company the equity shareholders 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.

(E) The Company has not issued any share as fully paid up without payment being received in cash or as bonus shares nor any share has been bought back by the Company since its incorporation.

(F) The shareholders of the Company approved split of one fully paid up equity share of the Company having face value of H 10 each into 5 fully paid up equity shares having a face value of H 2 each and same has been given effect to on 15 May 2023 (record date).

Nature and purpose of other reserves

(i) Securities Premium Reserve

Securities Premium Reserve is used to record the premium on issue of shares. The reserve is utilised in accordance with the provision of the Act.

(ii) General Reserve

General reserve is used for strengthening the financial position and meeting future contingencies and losses.

(i) Term loans from banks include

- Loan taken from HDFC Bank Limited for boards & panel project at Udumalpet, Tamilnadu State and an additional production line of cement roofing sheets at Raebareli, Uttar Pradesh State. The loan sanctioned and drawn is H 7,500.00 lakhs during the year 2022-23 and is repayable in 24 quarterly installments at the rate of H 312.50 lakhs each quarter from the financial year 2022-23 to 2028-29 (i.e., from December’ 2022 to September’ 2028).The current rate of interest is 8.35% p.a(2024-8.78%p.a) (linked to treasury bill rate). This loan is secured by first mortgage and charge in favour of the Bank on all the Company’s fixed assets both present and future and second charge on the current assets of the Company on pari passu basis with other lenders. The amount outstanding as at balance sheet date is H 4,375.00 lakhs (2024- H5,625.00 lakhs) repayable in 14 quarterly installments (out of which H 1,250.00 lakhs (2024- H1,250.00 lakhs) are included in Borrowings (current)).

- Loan taken from ICICI Bank Limited for boards & panel project at Udumalpet, Tamilnadu State and an additional production line of cement roofing sheets at Raebareli, Uttar Pradesh State. The loan sanctioned is H 7,500.00 lakhs during the year 2022-23 at the current rate of interest of 8.52% p.a(2024-8.92%p.a) (linked to treasury bill rate). Out of which

(a) H 5,000.00 lakhs is drawn in September 2022, which is repayable in 22 quarterly installments at the rate of H 22727 lakhs each quarter from financial year 2022-23 to 2027-28 (i.e., from December’ 2022 to March’ 2028).

(b) H 2,500.00 lakhs is drawn in January 2023 which is repayable in 21 quarterly installments at the rate of H 119.05 lakhs from the financial year 2022-23 to 2027-28 (i.e., from March’ 2023 to March’ 2028).

This loan is secured by first mortgage and charge in favour of the Bank on all the Company’s fixed assets both present and future and second charge on the current assets of the Company on pari passu basis with other lenders. The amount outstanding as at balance sheet date is H 4,155.84 lakhs (2024- H5,541.13 lakhs) repayable in 12 quarterly installments (out of which H 1,385.28 lakhs (2024- H1,385.28 lakhs)are included in Borrowings (current)).

- Loan taken from IDBI Bank Limited for boards project at Midnapur, West Bengal State. The loan sanctioned and drawn is H 9,000.00 lakhs during the year 2023-24 and is repayable in 20 quarterly installments at the rate of H 450.00 lakhs each quarter from the financial year 2024-25 to 2029-30 (i.e., from July 2024 to June 2029).The current rate of interest is 9.05% p.a. This loan is secured by first mortgage and charge in favour of the Bank on all the Company’s fixed assets both present and future and second charge on the current assets of the Company on pari passu basis with other lenders. The amount outstanding as at balance sheet date is H 7,199.95 lakhs repayable in 16 quarterly installments (out of which H 1,800.00 lakhs are included in Borrowings (current)).

(ii) Loans from others include interest free loans of H 6,570.36 lakhs availed ( H 809.99 lakhs in 2014-15, H 814.44 lakhs in 2016-17, H 973.03 lakhs in 2017-18, H 2,125.12 lakhs in 2019-20, H731.61 lakhs in 2022-23 , H81.29 lakhs in 2023-24 and H1034.88 lakhs in 202425 ) from The Pradeshiya Industrial & Investment Corporation of U.P Ltd (PIC UP) for the cement asbestos unit at Raebareli, U.P which is sanctioned under the Industrial Investment Promotion Scheme, 2003. The loan is secured by first charge on all assets of the Company both present and future, by way of first pari-passu charge with all the secured lenders of the Company and personal guarantee of Mrs. G Saroja Vivekanand, Managing director of the Company. The loans are repayable (each installment drawn) after 10 years from the date of disbursement. During the year the Company has repaid the loan of H809.90 lakhs. As per Ind AS requirements, these loans have been recognised at fair value and the difference between fair value and transaction value is recognised as Deferred Revenue Grant.

(iii) Public deposits represent deposits accepted from public carrying interest varying from 9.5% to 11.5% p.a. The maturity of these deposits fall on different dates depending on the date of each deposit. There are no deposits matured and remaining unpaid as on the balance sheet date.

(iv) There are no borrowings from banks and financial institutions not used for specific purpose for which it was taken as at balance sheet date.

21.1 Working capital loans from banks are loans from State Bank of India. The loans are repayable on demand which are secured on pari-passu basis by hypothecation of the Company’s entire current assets including raw materials, work-in-progress, stores & spares, finished goods and book debts, present and future, and second charge by way of hypothecation on all fixed assets present and future. Working capital demand loan carries interest rate of 7.50% to 770% p.a (2024- 7.50% to 7.70%p.a) and cash credit carries interest of 9.40% p.a(2024-8.70%p.a).

21.2 Short term loans include

- Loan from HDFC amounting to H 5,976.88 lakhs (2024- H4,925.61 lakhs) at an interest rate of 7.52% to 8.00% p.a (2024-7.60% to 8.00%p.a).

- Loan from ICICI amounting to H 3,000.00 lakhs (2024- H4,000.00 lakhs) at an interest rate of 8.00% to 8.65% p.a(2024-770% to 8.70%p.a).

- Standby letter of credit availed from various banks at an rate of interest ranging from 6.00% to 6.50% p.a(2024-6.00% to 6.50%p.a). The balance outstanding as at year end comprise of credit availed from :

(a) HDFC amounting to H 2,558.03 lakhs (2024- H1,043.32 lakhs)

(b) ICICI amounting to H Nil lakhs (2024- H68750 lakhs)

(c) SBI amounting to H 1,818.36 lakhs (2024- H1,731.02 lakhs)

(ii) Defined contribution plans

The Company has defined contribution plans namely provident fund, super annuation fund and employee state insurance corporation (ESI). Contributions are made to provident fund at the rate of 12% of basic salary as per regulations. The contributions

are made to registered provident fund administered by the Government. The Company has created an approved superannuation fund and accounts for the contribution made to LIC of India against an insurance policy taken with them. Contributions are made to state insurance scheme for employees at the rate of 3.25%. The contributions are made to employee state Insurance corporation (ESI), a corporation administered by the government. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation. The expense recognised during the year towards defined contributions plans is as follows:

(iii) Post- employment obligations Gratuity

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. 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 the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service. The gratuity plan is a funded plan and the Company makes contributions to LIC of India. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises each period of service giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

The above sensitivity analysis is based on a change in each assumption while holding all other assumptions constant. In practice, this is unlikely to occur and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions, the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

v) Risk exposure

Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are detailed below: Interest rate risk:

The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields fall, the defined benefit obligation will tend to increase.

Salary inflation risk:

Higher than expected increases in salary will increase the defined benefit obligation.

Demographic risk:

This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligation is not straight forward and depends upon the combination of salary increase, discount rate and vesting criteria. It is important not to overstate withdrawals because in the financial analysis the retirement benefit of a short career employee typically costs less per year as compared to a long service employee.

35. Fair Value Measurement Fair values

1. The carrying amounts of trade payables, other financial liabilities(current), other financial assets(current), borrowings (current), trade receivables, cash and cash equivalents, other bank balances and loans are considered to be the same as fair value due to their short term nature.

2. Borrowings(non-current) consists of loans from banks and government authorities, other financial liabilities(non-current) consists of interest accrued but not due on deposits and other financial assets(non-current) include employee advances where the fair value is considered based on the discounted cash flow.

The fair value of financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

*Fair value of instruments is classified in various fair value hierarchies based on the following three levels:

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices.

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 significant inputs required to fair value an instruments are observable, the instrument is included in Level 2.

Level 3: If one or more of the significant inputs are not based on observable market data, the instruments is included in level 3.

Management uses its best judgement in estimating the fair value of its financial instruments. However, there are inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates presented above are not necessarily indicative of the amounts that the Company could have realized or paid in sale transactions as of respective dates. As such, the fair value of financial instruments subsequent to the reporting dates may be different from the amounts reported at each reporting date.

36. Financial risk management

The Company is exposed to market risk (fluctuation in foreign currency exchange rates, price and interest rate), liquidity risk and credit risk. The Company assesses the unpredictability of the financial environment and seeks to mitigate potential adverse effects on the financial performance of the Company

(A) Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises of currency risk, interest rate risk and price risk. Financial instruments affected by market risk include loans and borrowings, trade receivables and trade payables involving foreign currency exposure. The sensitivity analysis in the following sections relate to the position as at 31 March 2025 and 31 March 2024.

The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at 31 March 2025 and 31 March 2024.

(i) Foreign currency exchange rate risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company's exposure to the risk of changes in foreign exchange rates relates primarily to the trade/ other payables, trade/other receivables The risks primarily relate to fluctuations in US Dollar and Euro against the functional currencies of the Company. The Company's exposure to foreign currency changes for all other currencies is not material. The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks.

The following tables demonstrate the sensitivity to a reasonably possible change in US dollars and Euros exchange rate, with all other variables held constant. The impact on the Company’s profit before tax is due to changes in the fair value of monetary assets and liabilities.

The movement in the pre-tax effect is a result of a change in the fair value of monetary assets and liabilities denominated in US dollars and Euros, which is different from the functional currency of the entity

(iii) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of change in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s debt obligations with floating interest rates. As the Company has certain debt obligations with floating interest rates, exposure to the risk of changes in market interest rates are dependent of changes in market interest rates. Management monitors the movement in interest rate and, wherever possible, reacts to material movements in such rates by restructuring its financing arrangement.

As the Company has no significant floating interest bearing assets, the income and operating cash flows are substantially independent of changes in market interest rates.

(B) Credit Risk

Credit risk is the risk arising from credit exposure to customers, cash and cash equivalents held with banks and current and noncurrent held-to maturity financial assets.

With respect to credit exposure from customers, the Company has a procedure in place aiming to minimise collection losses. Credit Control team assesses the credit quality of the customers, their financial position, past experience in payments and other relevant factors. Cash and other collaterals are obtained from customers when considered necessary under the circumstances.

The carrying amount of trade receivables, loans, advances, deposits, cash and bank balances, bank deposits and interest receivable on deposits represents Company’s maximum exposure to the credit risk. No other financial asset carry a significant exposure with respect to the credit risk. Bank deposits and cash balances are placed with reputable banks and deposits are with reputable government, public bodies and others.

The credit quality of financial assets is satisfactory, taking into account the allowance for credit losses.

The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base, including default risk associate with the industry and country in which customers operate. Credit quality of a customer is assessed based on an extensive credit rating scorecard and individual credit limits are defined in accordance with this assessment.

An impairment analysis is performed at each reporting date on an individual basis for major receivables. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets. The Company also holds deposits as security from certain customers to mitigate credit risk.

i. Credit risk on cash and cash equivalents, deposits with banks and other bank balances is limited as the Company generally invest in deposits with banks with high credit ratings assigned by external agencies.

ii. The Company follows “simplified approach” for recognition of impairment of loss allowance on trade receivable.

(iii) Significant estimates and judgements Impairment of financial assets:

The impairment provisions for financial assets disclosed above are based on assumptions about risk of default and expected loss rates. The Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on the Company’s past history existing market conditions as well as forward looking estimates at the end of each reporting period.

(C) Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding to meet obligations when due and to close out market positions. Company’s treasury maintains flexibility in funding by maintaining availability under deposits in banks.

37. Capital management

A. Capital management and Gearing Ratio

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. The primary objective of the Company’s capital management is to maximise the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. The Company monitors capital using a gearing ratio, which is debt divided by total capital. The Company includes within debt, interest bearing loans and borrowings.

38. Segment information

The Company’s Managing Director and Joint Managing Director examines the Company’s performance from a product perspective and has identified two reportable segments namely Building products and Synthetic Yarn.

Segment revenue and expenses:

The Company has an established basis of allocating Joint/Corporate expenses to the segments, which is reasonable, and followed consistently. All other segment revenue and expenses are attributable to the segments. Certain Expenses/Income are not specifically allocable to specific segments and accordingly these expenses are disclosed as unallocated expenses or income and adjusted only against the total income of the Company Segment result includes the respective other income.

Segment assets and liabilities:

Segment assets include all operating assets used by a segment and consist principally of operating cash, debtors, inventories and fixed assets, net of allowances and provisions that are reported as direct offsets in the balance sheet. While most assets can be directly attributed to individual segments, the carrying amount of certain assets used jointly by two or more segments is allocated to the segments on a reasonable basis. In such cases, the entire revenue and expenses of these assets including depreciation are also allocated to the same segments. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities. Assets which are not allocable to the segments have been disclosed as 'unallocated assets’. Liabilities which are not allocable to the segments have been disclosed as 'unallocated liabilities’. Segment assets and liabilities do not include deferred income taxes.

The Company has created a provision with respect to contingencies for which loss is probable or estimatable (Refer Note 25). While the ultimate resolution of and liability and cost relatable to these matters cannot be determined with certainty the management does not believe any of these pending actions, individually or in the aggregate, will materially impact operations or materially affect financial condition or liquidity.

46. Title deeds of immovable properties

The title deeds of all the immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in the favour of the lessee), as disclosed in note 4.1, 4.2 & 4.3 to the standalone financial statements, are held in the name of the Company.

47. Valuation of Property Plant & Equipment, intangible asset

The Company has not revalued its property, plant and equipment including Right -of -Use Asset or intangible assets or both during the current or previous year.

49. Details of benami property held

No proceedings have been initiated on or are pending against the Company for holding benami property under the Prohibition of Benami Property Transactions Act, 1988 (as amended in 2016) (formerly the Benami Transactions (Prohibition) Act, 1988 (45 of 1988)) and rules made thereunder.

50. Borrowing secured against current assets

The Company has borrowings from banks on the basis of security of current assets. The quarterly returns or statements of current assets filed by the Company with banks are in agreement with the books of accounts.

51. Wilful defaulter

The Company has not been declared wilful defaulter by any bank or financial institution or other lender.

52. Relationship with struck off companies

The Company has no transactions with the companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of the Companies Act, 1956.

53. Registration of charges or satisfaction with Registrar of Companies (ROC)

There are no charges or satisfaction yet to be registered with Registrar of Companies (ROC) beyond the statutory period.

54. Compliance with number of layers of companies

The Company has complied with the number of layers prescribed under the Section 2(87) of the Companies Act, 2013 read with Companies (Restriction on number of layers) Rules, 2017.

55. Compliance with approved scheme(s) of arrangements

The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

56. Utilisation of borrowed funds and share premium

No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entity including foreign entities (“Intermediaries”) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

57. Undisclosed income

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded previously in the books of account.

58. Details of crypto currency or virtual currency

The Company has not traded or invested in crypto currency or virtual currency during the current or previous year

59. Utilisation of borrowings availed from banks and financial institutions

The borrowings obtained by the Company from banks and financial institutions have been applied for the purposes for which such loans were taken.