అకౌంట్స్ గమనికలుDCM Shriram International Ltd.

Mar 31, 2026

d) Terms, rights, preferences and restrictions attached to equity shares

The Company has one class of equity shares having a par value of Rs. 2 per share. Each shareholder is eligible for one vote per share held. 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 equity shares held by the shareholders.

The Company declares and pays dividends in Indian Rupees. The dividend, if proposed by the Board of Directors, is subject to the approval of the shareholders in the Annual General Meeting, except in case of interim dividend.

The Board of Directors have recommended a final dividend of Rs.0.40 per share on equity shares of Rs.2 each for the year ended 31 March 2026, subject to approval of shareholders at the ensuing annual general meeting and the same has not been included as a liability in these financial statements. The total expected amount of cash outflow is Rs. 348 lakhs.

A. SECURED

I. Terms of repayment-from banks*

a) Rs. 975.00 lakhs carrying interest linked to RBI Repo Rate and spread thereon (2.35% p.a.), repayable in 12 quarterly Instalments, (March 31, 2025 Rs. 1197.05 lakhs carrying interest linked to RBI Repo Rate and spread thereon (2.35% p.a.), repayable in 16 quarterly Instalments) is secured by exclusive first charge of the residential property in Vasant Vihar, New Delhi.

b) Rs. 302.62 lakhs carrying interest linked to RBI Repo Rate and spread thereon (2.35% p.a.), repayable in 10 quarterly Instalments, (March 31, 2025 Rs. Nil) is secured by exclusive first charge of the commercial property in Okhla, New Delhi.

c) Rs. 212.92 lakhs carrying interest linked to RBI Repo Rate and spread thereon (2.55% p.a.), repayable in 16 quarterly Instalments, (March 31, 2025 Rs. Nil) is secured by first pari-passu charge on all the immovable and movable properties of the Company excluding assets on exclusive charges

d) Rs. 29.81 lakhs carrying interest rate of 8.50% p.a. repayable in 21 monthly instalments, (March 31, 2025 Rs. 45.03 lakhs, is secured by hypothecation of specific asset (vehicle) carrying interest of 8.50%, repayable in 33 monthly instalments.)

e) Rs. Nil (March 31,2025: Rs. 199.21 Lakhs carrying interest linked to lender''s 1-year MCLR and spread thereon (2.38% p.a.), has been repaid in full, is secured by first pari-passu charge on all the immovable and movable properties of the Company excluding assets on exclusive charges)

*Amount represents current and non-current portion of the borrowings gross of unamortised transaction cost of Rs. 4.24 lakhs (March 31, 2025 Rs. 0.63 lakhs and excludes interest accrued of Rs. Nil (March 31,2025 Rs. Nil)

II. From banks - loans repayable on demand - secured by first pari-passu charge against the company''s current and non-current assets both present and future. Some of these are further secured by way of second pari-passu charge on the company''s property, plant and equipment. These carry interest rates ranging from 6.80% to 9.40% p.a. (March 31, 2025: 3.40% to 9.50% p.a.). Also refer note 40.

B. The quarterly returns/statements filed by the Company with the banks are in agreement with the books of account of the Company.

C. Pursuant to the Scheme of Demerger of the Rayon businesses of DCM Shriram Industries Limited with the Company, as sanctioned by the Hon''ble National Company Law Tribunal on November 21, 2025, all loans, borrowings, and bank facilities relating to the demerged businesses have, with effect from April 1, 2023 (the appointed date under the Scheme), vested in and been assumed by the Company.The Company is in the process of completing the requisite novation of the relevant loan agreements and security documents and effecting the corresponding change of name therein. Pending completion of the necessary filings and statutory formalities, the related charges continue to remain registered with the Registrar of Companies.

Note 2

During the previous year ended 31 March 2025, the provisions of Section 135 of the Companies Act, 2013, relating to Corporate Social Responsibility (CSR), are not applicable to the Company, as the Company does not meet the criteria specified in the section and the related rules.

Note 3

Further, as disclosed in Note 43, pursuant to the Scheme of Demerger of the Rayons Business of DCM Shriram Industries Limited into the Company, approved by NCLT on November, 21 2025 with an appointed date of April, 1 2023, the share of expenses incurred by the Rayons Business during the period when it formed part of DCM Shriram Industries Limited has been transferred to the Company and have been included above for the financial year 2024-25.

30. Contingent liabilities and commitments (to the extent not provided for)
A. Contingent liabilities*
Particulars	As at	As at
March 31, 2026		March 31, 2025
	Rs. lakhs	Rs. lakhs
Excise and Goods and Service tax matters (note a)	59.12	71.32
Claims against the Company not acknowledged as debts (excluding claims by employees, where amounts are not ascertainable) (note b)	384.15	384.15
Total	443.27	455.47

Notes

a) The Company has reviewed all its pending litigations primarily related to excess availment of input tax credit and wrong availment of MODVAT credit and has adequately provided for where provisions are required and disclosed as contingent liabilities where applicable, in its Standalone financial statements. The Company does not expect the outcome of these proceedings to have a materially adverse effect on its financial position.

b) Pending resolution of the respective proceedings, it is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above as it is determinable only on receipt of judgements/ decisions pending with various forums/authorities.

* Matters are subject to legal proceedings in the ordinary course of business. The legal proceedings, when ultimately concluded, are not likely to, in the opinion of the management, have a material effect on the results of the operations or financial position of the Company.

B. Commitments

a. Capital commitments: Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) amount aggregating to Rs. 1448.33 lakhs (March 31, 2025: Rs. 91.58 lakhs) relating to Property, plant and equipment.

b. Other commitments: The Company has other commitments, for purchase / sales orders which are issued after considering requirements per operating cycle for purchase / sale of goods and services, employee benefits including union agreement in the normal course of business. The Company does not have any long term commitments / contracts, including derivative contracts, with any material foreseeable losses.

32. Employee benefits

A. Defined contribution plans

Rs. 461.03 lakhs (March 31, 2025: Rs. 235.23 lakhs) for provident fund contributions and Rs. 53.19 lakhs (March 31, 2025: Rs. 75.47 lakhs) for superannuation and national pension scheme fund contributions have been charged to the Statement of Profit and Loss. The contributions towards these schemes are at the rates specified in the rules of the schemes.

B. Defined benefit plans

a) Liabilities for gratuity, privilege leaves and medical leaves are determined on actuarial basis. Gratuity

liability is provided to the extent not covered by the funds available in the gratuity fund.

Gratuity:

Gratuity scheme provides for a lump sum payment to vested employees at retirement, death, while in employment, or on termination of employment. Vesting occurs upon completion of five years of service, except death while in employment.

The weighted average duration of the defined benefit obligations as on March 31, 2026 is 14.02 years (March 31, 2025: 14.65 years)

Expected contributions to post-employment benefit plans for the financial year 2026-27 are Rs. 152.83 lakhs (2025-26: Rs. 109.51 lakhs).

The cost of the defined benefit plans and other long term benefits are determined using actuarial valuations. Actuarial valuations involve making various assumptions that may differ from actual developments in the future. These includes the determination of the discount rate, future salary increases and mortality rate. Due to the complexities involved, the valuation is highly sensitive to the changes in assumptions. All assumptions are reviewed at each reporting date. The present value of the defined benefit obligation and the related current service cost and planned service cost were measured using the projected unit cost method.

Pursuant to the Scheme, the Company continued to regularly contribute to income tax approved irrevocable trust fund to finance the liabilities of the gratuity plan. The fund''s investments are managed by certain insurance companies as per the mandate provided to them by the trustees and the asset allocation is within the permissible limits prescribed in the insurance regulations.

The sensitivity analysis above have been determined based on reasonably possible changes of the respective assumptions occurring at the end of reporting period, while holding all other assumptions constant. Sensitivities due to mortality and withdrawals are insignificant, hence not considered in sensitivity analysis disclosed.

C. Compensated absences:

The obligation of compensated absence in respect of the employees of the Company as at March 31, 2026 works out to Rs. 604.03 lakhs (March 31, 2025: Rs. 610.71 lakhs)

D. Risk exposure

These defined benefit plans typically expose the Company to actuarial risks as under:

a) Investment Risk

The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds.

b) Interest rate risk

A decrease in bond interest rate will increase the plan liability. However, this shall be partially off-set by increase in return as per debt investments.

c) Longevity risk

The present value of the defined plan liability is calculated by reference to the best estimate of the mortality of plan participants. An increase in the life expectancy will increase the plan''s liability.

d) Salary risk

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

E. On November 21, 2025 the Government of India notified four labour codes i.e. 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 ("New Labour Code”) consolidating 29 existing labour laws. The Ministry of Labour & Employment published draft Central Rules and FAQs to enable assessment of financial impact due to these changes in regulations. Based on information available and guidance provided by the Institute of Chartered Accountants of India, the Company has assessed impact of these changes and accordingly recorded past service cost of Rs. 29.09 lakhs. The company continues to monitor the developing regulatory scenario, including finalisation of Central / State Rules and clarifications from the Government on other aspects of labour codes. The accounting effect of such developments, if any, would be appropriately considered.

1 Transactions with the related parties are made on normal commercial terms and conditions and at market rates, to be settled in cash.

2. As per the approved Scheme of Arrangement, the Company has merged the operations of the Rayons undertaking (demerged unit) with effect from the appointed date. Accordingly, inter

se transactions between the Company and the Demerged Company in relation to the Rayons undertaking including transfer of goods, assets, employees, and funds, as well as reimbursement of expenses, transfer of income and expenses for the relevant period have been included, considering their relationship with the Company.

Further, pursuant to the approval of the Scheme, dividends declared by the Demerged Company and attributable to the Rayons undertaking, now merged with the Company for the respective period, have also been included above, as transactions with the Demerged Company are considered related party disclosures.

A sum aggregating to Rs. 41.09 lakhs is receivable as at March 31, 2026 (March 31, 2025: Rs. 459.16 lakhs payable) to DCM Shriram Industries Limited.

34. Financial instruments - Fair values and risk management

a. Financial instruments - by category and fair values hierarchy

Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

The following table shows the carrying amounts and fair value of financial assets and financial liabilities, including their levels in the fair value hierarchy.

# The Company''s borrowings have been contracted at both floating and fixed rates of interests. The borrowings at floating rates reset at short intervals. Accordingly, the carrying values of such borrowings (including interest accrued but not due) approximate fair values. The fair values of long-term borrowings with fixed rates of interest is estimated by discounting future cash flows using current rates (applicable to instruments with similar terms, currency, credit risk and remaining maturities to discount the future payout).

* The carrying amounts of trade receivables, trade payables, lease liabilities, cash and cash equivalents, investments, bank balances other than cash and cash equivalents, and other financial assets and liabilities, approximate the fair values, due to their short-term nature. The other non-current financial assets represents security deposits given to various parties, loans and advances to employees and officers and bank deposits (due for maturity after twelve months from the reporting date), lease liabilities and other non-current financial liabilities, the carrying values of which approximate the fair values as on the reporting date.

There have been no transfers between Level 1, Level 2 and Level 3 for the years ended March 31, 2026 and March 31, 2025.

Valuation

Following financial instruments are remeasured at fair value as under :

(a) The Company enters into derivative financial instruments such as foreign exchange forward contracts being valued using valuation techniques, which employs the use of market observable inputs. The Company uses mark to market valuation provided by bank for valuation of these derivative contracts. There is no material derivative financial instruments as at the balance sheet date.

(b) The fair values of investments determined based on the recoverable value as per agreement with the investee. The Company consider this as a strategic investment and consider the said classification as appropriate.

The fair value of unquoted equity investments classified as Level 3 is determined using a discounted cash flow model. The valuation incorporates significant unobservable inputs, including management''s estimates of future cash flows, operating margins, terminal growth rates and discount rates, due to the absence of observable market data. Sensitivity analysis has been prepared on the basis that other variables remain constant; however, changes in one assumption may be accompanied by changes in another. The difference between fair value of Investment and Cost of Investment is immaterial.

Credit risk is the risk that a customer or counterparty to a financial instrument will fail to perform or pay amounts due, causing financial loss to the Company. It arises from cash and cash equivalents, financial instruments and principally from credit exposure to customers relating to receivables. The Company continuously reviews the credit to be given and the recoverability of amounts due. Majority of the trade receivables are from parties with whom the Company has long standing satisfactory dealings.

* The Company believes that the unimpaired amounts are collectible in full, based on historical payment behaviour.

# The Company continuously reviews the credit to be given and the recoverability of amounts due. Majority of the trade receivables, both domestic and overseas, are from parties with whom the Company has long standing satisfactory dealings. The Company also makes provision for lifetime expected credit loss, based on its previous experience of provisions/write offs in previous years.

There is no allowance for impairment in respect of trade receivables.

Note

Cash and cash equivalents

Credit risk on cash and cash equivalents is limited as the Company generally transacts with the banks with high credit ratings assigned by domestic and international credit rating agencies.

(ii) 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 fall due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.

The Company believes that its liquidity position, including total cash and cash equivalent and bank balances other than cash and cash equivalent of Rs. 3618.15 lakhs as at March 31, 2026 (March 31, 2025 Rs. 3,590.65 lakhs), anticipated future considering internally generated funds from operations fully available and revolving undrawn credit facility will enable it to meet its future known obligations in the ordinary course of business. However, if liquidity needs were to arise, the Company believes it has access to financing arrangements, which should enable it to meet its ongoing capital, operating, and other liquidity requirements. The Company will continue to consider various borrowing or leasing options to maximize liquidity and supplement cash requirements, as necessary.

The Company''s liquidity management process as monitored by management, includes the following:

- Day to day funding, managed by monitoring future cash flows to ensure that requirements can be met.

- Maintaining rolling forecasts of the Company''s liquidity position on the basis of expected cash flows.

- Maintaining diversified credit lines.

Market risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risks: currency risk and interest rate risk. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return. The Board of Directors is responsible for setting up of policies and procedures to manage market risks of the Company.

Currency risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company is exposed to the effects of fluctuation in the prevailing foreign currency exchange rates on its financial position and cash flows. Exposure arises primarily due to exchange rate fluctuations between the functional currency and other currencies, from the Company''s operating, investing and financing activities.

Sensitivity analysis

A reasonably possible strengthening / weakening of the Indian Rupee against below currencies at March 31, 2026 (previous year ended as on March 31, 2025) would have affected the measurement of financial instruments denominated in functional currency and affected equity and profit or loss by the amounts shown below. This analysis is performed on foreign currency denominated monetary financial

assets and financial liabilities outstanding as at the year end. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases. (Rs. Lakhs)

USD: United States Dollar, EUR: Euro, AUD: Australian Dollar, GBP: Great British Pound Foreign exchange derivative contracts

The Company enters into foreign currency forward contracts to manage its exposure to foreign exchange risk arising from recognised monetary items and forecast transactions. These derivative instruments are intended to economically hedge foreign currency risk; however, they are not designated in a hedging relationship for hedge accounting purposes. Derivative financial instruments are initially recognised at fair value on the date on which the forward contract is entered into and are subsequently remeasured at fair value at the end of each reporting period. The fair value of forward contracts is determined using observable forward exchange rates prevailing at the reporting date. As hedge accounting is not applied, changes in the fair value of these forward contracts, including mark-to-market gains or losses, are recognised immediately in the Standalone statement of profit and loss.

Interest rate risk

Interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in interest rates. The Company''s main interest rate risk arises from long-term borrowings with variable rates, which expose the Company to cash flow interest rate risk.

35. Capital management

For the purposes of the Company''s capital management, capital includes issued equity share capital, securities premium and all other equity reserves attributable to the equity holders of the Company. The primary objective of the management of the Company''s capital structure is to maintain an efficient mix of debt and equity in order to achieve a low cost of capital. This also considers the desirable financial flexibility to pursue business opportunities and adequate access to liquidity to mitigate the effect of unforeseen events on cash flows.

The Company manages its capital structure and makes adjustments to it in light of changes in the economic/ business conditions and requirements.

36. Research expenses amounting to Rs. 236.56 lakhs (March 31, 2025: Rs. 405.32 lakhs) have been charged to the respective revenue accounts. Capital expenditure relating to development amounting to Rs. 206.65 lakhs (March 31, 2025: Rs. 56.81 lakhs) has been included in property, plant and equipment.

^A Vested in the DCM Shriram Industries Limited pursuant to a Scheme of Arrangement of erstwhile DCM Limited in 1991 (Undisputed)

* As per the Scheme, all immovable property (including but not limited to land, buildings, and any other rights, titles, interests, rights of way, and easements in relation thereto) shall vest in the Company or be deemed to have been so, automatically without any further act or deed, with effect from the Appointed Date. Accordingly, all the immovable properties of the Demerged Company, forming part of the Demerged Undertaking, have vested in the Company with effect from April 01, 2023. The Company shall also file the necessary applications for updation of its name with the concerned authorities in due course.

@ During the current year, the sales volume declined due to lower demand and the geopolitical situation in the Middle East, resulting in reduced profitability and consequently impacting the Company''s net profit and related financial ratios.

42. In accordance with Ind AS 108 ''Segment Reporting'' as specified in section 133 of the Companies Act, 2013 , the Company has identified a single reportable business segment viz. ''Industrial fibres and related products''. The segment have been identified and reported taking into account the differing risks and returns, and the current internal financial reporting systems. For the segment, the Chief Operating Decision Maker (CODM) reviews internal management reports on at least a quarterly basis. The CODM monitors the operating results for the purpose of making decisions about resource allocation and performance measurement (Refer Note 3A(q)).

a) The Hon''ble National Company Law Tribunal, New Delhi bench, vide Order dated November 21, 2025, approved the Composite Scheme of Arrangement between DCM Shriram Industries Limited (DCMSR) and DCM Shriram Fine Chemicals Limited and DCM Shriram International Limited (wholly owned subsidiaries of DCM Shriram Industries Limited) and Lily Commercial Private Limited, for amalgamation of Lily Commercial Private Limited with DCM Shriram Industries Limited, and subsequent demerger of Chemical and Rayon businesses of DCM Shriram Industries Limited into DCM Shriram Fine Chemicals Limited and DCM Shriram International Limited, respectively, with effect from the appointed date of April 01, 2023 (''the Scheme''). The Scheme after approval from BSE and NSE, was filed with the Hon''ble NCLT, New Delhi as required under Section 230-232 of the Companies Act, 2013. The Hon''ble NCLT after due process and hearings has approved the Scheme by Order dated November 21, 2025. Subsequently, certified copies of the Order and the Scheme were received on December 05, 2025. As required under the Companies Act, 2013, certified copies were filed by the companies with the Registrar of Companies between 5th December to 17th December, 2025. Accordingly, the Scheme is deemed to have come into effect from December 17,, 2025 in terms of Clause 7.1(v) of the Scheme. The Scheme is applicable from the Appointed Date i.e. April 01, 2023. Accordingly, due effect of the Scheme has been incorporated from the Appointed Date. From the Appointed Date, the Business of Rayon Undertaking (along with all assets and liabilities thereof) were transferred to the Company on a going concern basis.

The transaction has been accounted for using the common control method under Ind AS 103 - Business Combinations, with all identified assets and liabilities recorded at their carrying values. Accordingly, the business combination has been reflected in the books of account from the beginning of financial year 2023-24, i.e., April 01, 2023 (Appointed date).

The Company has given effect to the scheme in accordance with the accounting treatment specified in the scheme as per applicable accounting standards (IndAS) as under:

1. All the assets, liabilities and reserves pertaining to the Rayon Undertaking, appearing in the books of the DCMSR, shall stand transferred to, and the same shall be recorded by, DCM Shriram International Limited at their respective carrying amount and in the same form and manner as appearing in the books of accounts of the DCMSR.

2. Issued 8,69,92,185 Equity Shares of face and paid up value of Rs. 2 each to the shareholders of DCMSR.

3. Difference between the consideration paid by way of issue of equity shares at face value and assets and liabilities including reserves transferred from DCMSR and cancellation of investment done by DCMSR in the Resultant Company is recorded as capital reserve.

The previous year figures of Balance Sheet, Statement of Profit and Loss (including Other Comprehensive Income), Statement of changes in equity and Statement of Cash Flows have been restated as if the amalgamation has taken place from the first day of the earliest period presented as required under Appendix C of Ind AS 103.

The Company has estimated and recognised stamp duty expense of Rs. 2083.00 lakhs for transfer of land at Kota, pursuant to the Scheme. The entire amount has been accounted for as an exceptional item.

44. Additional regulatory information:

i) The Company does not have any benami property, and no proceeding has been initiated against the Company for holding any benami property.

ii) The Company does not have any transactions with struck off companies.

iii) Pursuant to the Scheme of Demerger of the Rayon Business of DCM Shriram Industries Limited into the Company, approved by the National Company Law Tribunal ("NCLT") on November 21, 2025, all loan and bank facilities relating to the demerged business have vested in and been assumed by the Company with effect from April 01, 2023. The Company is in the process of completing the necessary novation and updation of its name in the relevant loan and security documents. Pending completion of the required filings, the related charges continue to stand registered with the Registrar of Companies in the name of DCM Shriram Industries Limited.

iv) The Company has not traded or invested in crypto currency or any virtual currency during the financial year.

v) 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."

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

a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the funding party (ultimate beneficiaries) or

b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

vii) 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).

viii) The Company has not been declared as a wilful defaulter by any banks or any other financial institution at any time during the financial year or after the end of the reporting period but before the date when the financial statements are approved by the Board of Directors.

ix) The Company is not a Core Investment Company (CIC) as defined in the regulations made by the Reserve Bank of India and the Group (as per the provisions of the Core Investment Companies (Reserve Bank) Directions, 2016) does not have any CIC.

x) The Company has complied with the number of layers prescribed under clause (87) of Section 2 of the Act.