XVII. Provisions and Contingent Liabilities

A provision is recognized when the Company has a present obligation as a result of past event; it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a reliable estimate can be made of the amount of obligation. Provisions are
not discounted to its present value and are determined based on best estimate required to settle the obligation at the reporting date.
These are reviewed at each reporting date and adjusted to reflect the current best estimates

Where the Company expects some or all of a provision to be reimbursed, for example under an insurance contract, the reimbursement is
recognized as a separate asset but only when the reimbursement is virtually certain. The expense relating to any provision is presented
in the statement of profit and loss net of any reimbursement.

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 recognized
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 recognized because it cannot be measured reliably. The Company does not
recognize a contingent liability but discloses its existence in the financial statements.

XVIII. Corporate Social Responsibility

The Company''s CSR expenditure is recognized in the Statement of Profit and Loss in the year in which it is incurred. Any unspent amount

required to be spent under Section 135 of the Companies Act, 2013, is recognized as a statutory liability/provision and transferred to
the specified funds or separate bank accounts within the timelines prescribed by law. Surplus arising out of CSR activities, if any, is not
recognized as business profit and is redirected back into CSR initiatives.

XIX. Foreign Currency Transactions

Transactions in foreign currency are recorded at the exchange rate prevailing on the date of transaction. Net exchange gain or loss
resulting in respect of foreign exchange transactions settled during the year is recognized in the statement of profit and loss.

Foreign currency denominated monetary items at year end are translated at exchange rates as on the reporting date and the resulting
net gain or loss is recognized in the statement of profit and loss. Non-monetary items, which are measured in terms of historical cost
denominated in a foreign currency, are reported using the exchange rate at the date of the transaction.

XX. Events occurring after the Balance Sheet date

Events occurring after the balance sheet date are those significant events, both favourable and unfavourable, that occur between the
balance sheet and the date on which the Standalone financial statements are approved by the Board of Directors. Adjustments to assets
and liabilities are required for events occurring after the balance sheet date that provide additional information materially affecting the
determination of the amounts relating to conditions existing at the balance sheet date. To that extent Assets and Liabilities are adjusted
for events occurring after the balance sheet date which indicates that the fundamental accounting assumption of going concern is not
appropriate.

i. Term Loan from HDFC Bank Limited of '' 76.95 lakhs (P.Y. ''149.82 lakhs) is secured by way of Hypothecation of all existing and future current assets as
well as moveable fixed assets of the company and further secured by way of personal gurantee of Directors. The said loan is repayable in 61 equal monthly
instalments starting from March, 2022.

ii. Term Loan from HDFC Bank Limited of '' 90.26 lakhs (P.Y. ''133.79 lakhs) is secured by way of Hypothecation of all existing and future current assets as
well as moveable fixed assets of the company and further secured by way of personal gurantee of Directors. The said loan is repayable in 60 equal monthly
instalments starting from February, 2023.

iii. Term Loan from HDFC Bank Limited of '' 27.91 lakhs (P.Y.''40.55 lakhs) is secured by way of Hypothecation of all existing and future current assets as well
as moveable fixed assets of the company and further secured by way of personal gurantee of Directors. The said loan is repayable in 62 equal monthly
instalments starting from February, 2023.

iv. Term Loan from HDFC Bank Limited of '' 102.26 lakhs (P.Y. ''120.35 lakhs) is secured by way of Hypothecation of all existing and future current assets as
well as moveable fixed assets of the company and further secured by way of personal gurantee of Directors. The said loan is repayable in 83 equal monthly
instalments starting from October, 2023.

v. Term Loan from HDFC Bank Limited of '' 1299.70 lakhs (P.Y. ''321.45 lakhs) is secured by way of Hypothecation of all existing and future current assets as
well as moveable fixed assets of the company and further secured by way of personal gurantee of Directors. The said loan is repayable in 72 equal monthly
instalments starting from January, 2025.

vi. Vehicle loan from HDFC Bank amounting to '' 13.39 lakhs (P.Y.''34.70 lakhs) are secured by way of hypothecation of respective motor vehicles purchased.
The said loans are repayable in 24 equal monthly instalments starting from November, 2024.

vii. Vehicle loan from HDFC Bank amounting to '' 6.68 lakhs (P.Y. Nill) are secured by way of hypothecation of respective motor vehicles purchased. The said
loans are repayable in 24 equal monthly instalments starting from January, 2026.

viii. Vehicle loan from HDFC Bank amounting to '' 22.46 lakhs (P.Y. Nill) are secured by way of hypothecation of respective motor vehicles purchased. The said
loans are repayable in 24 equal monthly instalments starting from January, 2026.

ix. Unsecured Loan from Directors Current year : Nill (P.Y. 204.20) are repaid during the year.

x. Rate of Interest on the above loans ranges from 8.50% to 10.00% p.a.

Note:

The Company has given Bank Guarantees for Rs. 141.34/- Lakhs for Due Performance of Contracts to Various Public Sector Companies/
Corporations/ Department of Defense for the above value. The Company has given Bank Guarantees for Rs. 11.00/- Lakhs for its probable
obligation under the Export. Obligations against the benefits availed under EPCG Scheme.

*Note 1: Net Proceeds originally allocated at Rs. 5233.66 Lacs after deduction of Share Issue Expenses of Rs. 759.74 Lacs from Gross IPO
Proceeds of Rs. 5993.40 Lacs as per the original allocation stated in RHP Document.

Note 2: During the half year ended 31.03.2025, the Net Proceeds were revised from ?5,233.66 lakh to ?5,232.14 lakh due to an increase
of ?1.52 lakh in share issue expenses as compared to the originally planned amount. The said increase was adjusted against the allocation
for General Corporate Purposes (GCP), thereby revising the GCP allocation from ?394.93 lakh to ?393.41 lakh for that period. No further
modification has occurred during the half year ended 31.03.2026.

Note 3: Certain components of the expansion project are currently under legal formalities, approvals, and permissions, as required under
Explosive Rules, 2008. The Company will deploy the funds for these components as and when the required clearances are received. In the
interim, the Company has temporarily parked ?2000 Lakhs in fixed deposit receipts (FDRs). These funds will be utilized in accordance with
the planned object of the issue.

36. Insurance Claim Receivables

Vehicle repair expenses for the year are net of an insurance claim recovery amounting to Rs. 9.22 Lakhs. The claim was registered, approved, and fully settled by
the insurance company subsequent to the balance sheet date but before the approval of financial statements, and has been treated as an adjusting event under
AS 4.

37. Investment in Associate

Pursuant to a Share Swap Agreement (SSA) dated 25.11.2025 entered in to by the company, the company has issued 22,30,641 numbers of Equity shares of
face value Rs.10/- with share premium of Rs. 226/- per share on a preferential basis as consideration other than cash for acquisition of 3,47,480 Shares, being
34.84% stake in Asawara Earthtech Limited (AEL).

Consequent to the acquisition of the 34.84% equity stake, AEL has become an Associate Company.

38. Acquisition of Remaining Shares of Subsidiary

During the year under audit the company has acquired balance 49% stake of a subsidiary company namely Asawara Industries Limited (ASIL) at Rs. 67,57,100.
After this acquisition, AIL has become Wholly Owned Subsidiary.

39. Revised Labour Code

On November 21, 2025, the Government of India notified the four Labour Codes - the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on
Social Security, 2020, and the Occupational Safety, Health and Working Conditions Code, 2020 (collectively "new Labour Codes”) -consolidating 29 existing
labour laws. The Ministry of Labour & Employment published draft Central Rules and FAQs to enable assessment of the financial impact due to changes in regu¬
lations. The company/group has assessed and disclosed the incremental impact of these changes on the basis of best information available and consistent with
the guidance provided by the Institute of Chartered Accountants of India.

40. Audit Trail

As per the requirements of Rule 3(1) of the companies (Accounts) Rules 2014, the company uses an accounting software for maintaining its books of accounts
which has a feature of recording the audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the ac¬
counting software. Further, no instance of audit trail feature being tampered with was noted in respect of the accounting software. Additionally, the audit trail has
been preserved by the company as per the statutory requirements for record retention.

42.Other Statutory Notes

(A) Pursuant to the Taxation Laws (Amendment) Act, 2019, with effect from 01-April 19 domestic companies have the option to pay corporate income tax at a
rate of 22 plus applicable surcharge and cess (New Tax Rate) subject to certain conditions. The Company had adopted new scheme.

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

(C) The Company did not have any transactions with Companies struck off.

(D) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

(E) The Company has not traded or invested in Crypto currency or Virtual Currency during the respective financial years/period.

(F) The Company has 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

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

i) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Finding Party (Ultimate
Beneficiaries) or

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

(H) The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during
the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

(I) The Company has not been declared wilful defaulter by any bank or financial Institution or other lender.

(J) The Company does not have any Scheme of Arrangements which have been approved by the Competent Authority in terms of sections 230 to 237 of the
Act.

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

Except wherever stated, accounting policies are consistent with the generally accounting principles and have been
consistently applied.

The company has following contingent liabilities during the year under review-

13. Provisions, Contingent Liabilities and Contingent Assets: - (AS-29)

Provisions are recognized only when there is a present obligation as a result of past events and when a reliable
estimate of the amount of the obligation can be made.

Contingent Liabilities is disclosed in Notes to the account for: -

(i) Possible obligations which will be confirmed only by future events not wholly within the control of the
company or

(ii) Present Obligations arising from past events where it is not probable that an outflow of resources will be
required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.

Contingent assets are not recognized in the financial statement since this may result in the recognition of the
income that may never be realized.

General:

The Company has given Bank Guarantees for C 17156.840/- for Due Performance of Contracts to Various Public
Sector Companies/Corporations/Department of Defense for the above value.

The Company has given Bank Guarantees for C 1100.000/- for its probable obligation under the Export Obligations
against the benefits availed under EPCG Scheme.

14. Earning Per Share

Basic earnings per share are calculated by dividing the net profit for the year attributable to equity shareholders by
the weighted average number of equity shares outstanding during the period. Earnings considered in ascertaining
the company''s earning per share is the net profit for the period after deducting preference dividends and any
attributable tax thereto for the period. The weighted average number of equity shares other than the conversion of
potential equity shares that they have changed the number of equity shares outstanding, without a corresponding
change in resources.

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 is adjusted for the effects
of all dilutive potential equity shares.

15. Cash Flow Statement

Cash flow are reported using the indirect method, whereby net profit before tax is adjusted for the effects of
transaction of a non cash nature, any deferrals or accruals of past or future operating cash receipts or payments
and item of income or expenses associated with investing or financing cash flows. The cash flows from operating,
investing and financing activities of the company are segregated.

B Notes on Financial Statements

1. The SSI (MSME) status of the creditors is taken as per documents provided by the Comp hence reporting in the
financial statements are made on such the basis.

2. Salaries includes directors'' remuneration on account of salary C 4650.000 (Previous C4400.000)

3. Trade receivables, Trade payables, Loans & Advances and Unsecured Loans have been ta at their book value
subject to confirmation and reconciliation.

4. Payments to Auditors:

(I) Pursuant to the Taxation Laws (Amendment) Act, 2019, with effect from 01-April 19 domestic companies have
the option to pay corporate income tax at a rate of 22 plus applicable surcharge and cess (New Tax Rate) subject
to certain conditions. The Company had adopted new scheme.

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

(iii) The Company did not have any transactions with Companies struck off.

(iv) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory period.

(v) The Company has not traded or invested in Crypto currency or Virtual Currency during the respective financial
years/period.

(vi) The Company has not advanced or loaned or invested funds to any other person(s) or entity (ies), including
foreign entities (Intermediaries) with the understanding that the Intermediary shall:

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

(b) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

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

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

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

(viii) The Company does not have any transaction which is not recorded in the books of accounts that has been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961
(such as, search or survey or any other elevant provisions of the Income Tax Act, 1961).

(ix) The Company has not been declared wilful defaulter by any bank or financial Institution or other lender.

(x) The Company does not have any Scheme of Arrangements which have been approved by the Competent
Authority in terms of sections 230 to 237 of the Act.

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

(xii) Disclosure as required under section 186(4) of Companies Act 2013