2.15 Provisions, contingent liabilities and contingent assets

Provisions are recognised when the Company has a present
obligation (legal or constructive) as a result of a past event, it
is probable that an outflow of resources embodying economic
benefits will be required to settle the obligation, and a reliable
estimate can be made of the amount of the obligation. The
expense relating to any provision is presented in the statement
of profit and loss net of any reimbursement. If the effect of the
time value of money is material, provisions are determined by
discounting the expected future cash flows at a pre-tax rate that
reflects current market assessments of the time value of money
and, where appropriate, the risks specific to the liability. Where
discounting is used, the increase in the provision due to the
passage of time is recognised as other finance expense.

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 measures reliably.
The Company does not recognise a contingent liability but
discloses its existence in the standalone financial statements.

A contingent asset is not recognised unless it becomes virtually
certain that an inflow of economic benefits will arise. When an
inflow of economic benefits is probable, contingent assets are
disclosed in the standalone financial statements.

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

2.17 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. The liabilities are presented
as current employee benefit obligations in the balance
sheet.

(ii) Other long-term employee benefit obligations

The liabilities for earned leave are not expected to be
settled wholly within 12 months after the end of the period
in which the employees render the related service. They
are therefore 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. The benefits are
discounted using the appropriate market yields at the end
of the reporting period that have terms approximating to
the terms of the related obligation. Remeasurements as a
result of experience adjustments and changes in actuarial
assumptions are recognised in profit or loss.

The obligations are presented as current liabilities in the
balance sheet if the entity does not have an unconditional
right to defer settlement for at least twelve months after
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 (b)
Defined contribution plans such as provident fund
(c ) State plans

(d) Voluntary retirement scheme

(a) Defined benefit plans - Gratuity obligations

The liability or assets recognised in the balance sheet
in respect of defined benefit gratuity plans is the
present value of the defined benefit obligations 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
denominated in INR 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 benefits which
are denominated in currency other than INR, the cash
flows are discounted using market yields determined
by reference to high-quality corporate bonds that are
denominated in the currency in which the benefits
will be paid, and 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 change in actuarial
assumptions are recognised in the period in which
they occur, directly in other comprehensive income.
They are included in retained earnings in the
statement of changes in equity and in the balance
sheet.

Changes in the present value of the defined benefit
obligation resulting from plan amendments or
curtailments are recognised immediately in profit or
loss as past service cost.

(b) Defined contribution plans

The Company pays provident fund contributions
to publicly administered funds as per applicable
regulations. The Company has no further payment
obligations once the contributions have been paid.
The contributions are accounted for as defined
contribution plans and the contributions are
recognised as employee benefit expense when they
are due.

(c) State plans

Employer's contribution to Employees' State
Insurance is charged to statement of profit and loss.

(d) Voluntary retirement scheme

Compensation payable under the voluntary
retirement scheme is being charged to the Statement
of Profit and Loss in the year of settlement.

2.18 Dividends

Provision is made for the amount of any dividend declared,
being appropriately authorised and no longer at the discretion
of the entity, on or before the end of the reporting period but
not distributed at the end of the reporting period. Dividend
is recognised as a liability in the period in which the interim
dividends are approved by the Board of Directors, or in respect
of the final dividend when approved by shareholders.

2.19 Research and development expenditure

Revenue expenditure pertaining to research is charged to the
statement of profit and loss. Product development costs are

charged to the statement of profit and loss unless a product's
technological and commercial feasibility has been established,
in which case such expenditure is capitalised.

2.20 Earnings per share

Basic earnings per share are calculated by dividing the net profit
or loss for the period attributable to equity shareholders by the
weighted average number of equity shares outstanding during
the year.

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

2.21 Investment property

Property that is held for long-term rental yields or for capital
appreciation or both, and that is not used in the production
of goods and services or for the administrative purposes, is
classified as Investment property and is measured initially at cost,
including transaction costs. Subsequent to initial recognition,
investment properties are stated at cost less accumulated
depreciation and accumulated impairment loss, if any.

2.22 Government grants

Government grants relating to income are deferred and
recognised in the profit or loss over the period necessary to
match them with the costs that they are intended to compensate
and presented within other income.

Government grants relating to the purchase of property, plant
and equipment are included in non-current liabilities as deferred
income and are credited to profit or loss on a straight-line basis
over the expected lives of the related assets and presented
within other income.

Export entitlements from government authorities are
recognised in the statement of profit and loss as a reduction
from "Cost of materials consumed" when the right to receive
credit as per the terms of the scheme is established in respect of
the exports made by the group, and where there is no significant
uncertainty regarding the ultimate realisation of the entitlement

2.23 Rounding of amounts

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

2.24 Recent accounting pronouncements

Ministry of Corporate Affairs ("MCA") notifies new standards
or amendments to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time to
time. For the year ended March 31, 2025, MCA has notified Ind
AS - 117 Insurance Contracts and amendments to Ind AS 116
- Leases, relating to sale and leaseback transactions, applicable
to the Company w.e.f. April 1,2024. The Company has reviewed
the new pronouncements and based on its evaluation has
determined that it does not have any significant impact in its
financial statement.

The above sensitivity analysis is based on a change in an 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.

Defined benefit liability and employer contributions

The company has purchased insurance policy to provide for payment of gratuity to the employees. Every year, the insurance
company carries out a funding valuation based on the latest employee data provided by the company. Any deficit in the assets
arising as a result of such valuation is funded by the company. The company considers that the contribution rate set at the last
valuation date is sufficient to eliminate the deficit over the agreed period and that regular contributions, which are based on
service costs, will not increase significantly.

32 Financial instruments and risk management - Financial risk management

The Company's activities are exposed to Credit risk, Market risk and Liquidity risk. The Company emphasises on risk management and has
an enterprise wide approach to risk management. The Company's risk management and control procedures involve prioritization and
continuing assessment of these risks and devises appropriate controls, evaluating and reviewing the control mechanism.

(A) Credit risk

Credit risk is the risk of financial loss to the Company if a customer to a financial instrument fails to meet its contractual obligations.
The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities,
including deposits with banks. Credit risk of the Company is managed at the company level.

The credit risk related to trade receivables is influenced mainly by the individual characteristics of each customer. The Company
follows a 'simplified approach' (i.e. based on Life time expected credit losses based on provision matrix) for recognition of impairment
loss allowance on Trade receivables. For the purpose of measuring ECL allowance for trade receivables, the company estimates
irrecoverable amounts based on the ageing of the receivable balances and historical experience. Further, a large number of minor
receivables are grouped into homogeneous groups and assessed for impairment collectively and for major receivable assessed for
impairment individually. Individual trade receivables are written off when management deems them not to be collectible.

(B) Market risk

Market risk is the risk that the future value of a financial instrument will fluctuate due to movements in the market factors. The most
common types of market risks are interest rate risk and foreign currency risk.

• Interest rate risk

Interest rate risk is the risk that the future cash flows or the fair value of a financial instrument will fluctuate because of changes
in market interest rates. The interest rate risk is towards short term borrowings and term deposits with banks. The Company
manages its market interest rates by fixed rate interest, rate that is linked to marginal cost of lending rate, etc. Hence, the
Company is not significantly exposed to interest rate risks.

• Foreign currency 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 is not significantly exposed to this risk because of natural hedging in the form of imports
and exports being at similar levels.

Foreign currency risk - Sensitivity

The analysis is based on the assumption that the foreign currency increases / (decreases) by 2.5% with all other variables held
constant. The Company manages its market interest rates by fixed rate interest, rate that is linked to marginal cost of lending rate,
etc. Hence, the Company is not significantly exposed to interest rate risks.

44

(i) 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(s) or entity(ies), 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(s) (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.

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

45 Events occurring after the reporting period
(i) Proposed dividend

The dividend proposed and recommended by the Board of Directors for the approval of members at the ensuing annual general
meeting :

* TDS will be deducted at the time of payment of dividend as per the applicable provisions of the Income Tax Act, 1961.

(ii) Fire Accident

On April 29, 2025 , a Major Fire Accident occurred at propellant mixing building of Company's factory situated at Katepally Village,
Motakondur Mandal, Yadadri-Bhongir District, Telangana. causing significant damage to property, plant and equipment located at
incedent which have been appropriately insured and management has initiated insurance claims. Company also received a closure
order of the above plant from the Telangana pollution control board to stop industrial activities, Management taking all necessary
recourse with the department to get back their consent to start the operations. The extent of the financial impact is currently under
assessment. Preliminary estimates suggest its impact on respective plant's operations and delivery schedules, however, it is not
expected to affect the Company's ability to continue as a going concern.

The incident occurred after the end of the reporting period and therefore does not reflect conditions that existed at the reporting
date of March 31,2025 .As this event did not exist at the reporting date and does not provide evidence of conditions that existed at
that time, no adjustments have been made to the financial statements. This event is disclosed as a non-adjusting subsequent event
in accordance with Ind AS 10 - Events after the Reporting Period .

46 Previous year figures have been regrouped /reclassified to conform to current year classification.

As per our report of even date For and on behalf of the Board

For MAJETI & CO.

Chartered Accountants B.M. Vijay Kumar Dr. A.N.Gupta

Firm's registration number: 015975S Chief Financial Officer Chairman

DIN: 00053985

Kiran Kumar Majeti K. Jhansi Laxmi T.V. Chowdary

Partner Company Secretary Managing Director

Membership number: 220354 DIN: 00054220

Place: Secunderabad
Date: May 22, 2025