అకౌంట్స్ గమనికలుHD Fire Protect Ltd.

1.10 Provisions, Contingent Liabilities and Contingent Assets:

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past
event and it is probable that an outflow of resources, that can be reliably estimated, will be required to settle such
an obligation.

If the effect of the time value of money is material, provisions are determined by discounting the expected future
cash flows to net present value using an appropriate pre-tax discount rate that reflects current market assessments
of the time value of money and, where appropriate, the risks specific to the liability. Unwinding of the discount is
recognized in the Statement of Profit and Loss as a finance cost.

Provisions are reviewed at each reporting date and are adjusted to reflect the current best estimate.

A present obligation that arises from past events where it is either not probable that an outflow of resources will be
required to settle or a reliable estimate of the amount cannot be made, is disclosed as a contingent liability.
Contingent liabilities are also disclosed when there is a possible obligation arising from past events, the existence of
which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not
wholly within the control of the Company.

Claims against the Company where the possibility of any outflow of resources in settlement is remote, are not
disclosed as contingent liabilities.

A contingent asset is disclosed, where an inflow of economic benefits is probable. Contingent assets are not
recognized in financial statements since this may result in the recognition of income that may never be realised.
However, when the realisation of income is virtually certain, then the related asset is not a contingent asset and is
recognized.

1.11 Revenue Recognition:

ajRevenue from contracts from customers

• Revenue is recognized on the basis of approved contracts regarding the transfer of goods or services to a
customer for an amount that reflects the consideration to which the entity expects to be entitled in exchange for
those goods or services.

• Revenue towards satisfaction of a performance obligation is measured at the amount of transaction price (net of
variable consideration) allocated to that performance obligation. The transaction price of goods sold and services
rendered is net of variable consideration and outgoing taxes on sale. Any amounts receivable from the customer
are recognised as revenue after the control over the goods sold are transferred to the customer which is generally
on dispatch/delivery of goods.

• Variable consideration - This includes incentives, volume rebates, discounts etc. It is estimated at contract
inception considering the terms of various schemes with customers and constrained until it is highly probable that a
significant revenue reversal in the amount of cumulative revenue recognised will not occur when the
associated uncertainty with the variable consideration is subsequently resolved. It is reassessed at end of each
reporting period.

• Significant financing component - Generally, the Company receives shortterm advances from its customers. Using
the practical expedient in Ind AS 115, the Company does not adjust the promised amount of consideration for the
effects of a significant financing component if it expects, at contract inception, that the period between the transfer
of the promised good or service to the customer and when the customer pays for that good or service will be one
year or less.

bjlnterest income is recognized on time proportion basis taking into account the amount outstanding and rate
applicable.

c) Dividend income on investment is accounted for in the period/year in which the right to receive the same is
established.

d) Service income is recognized upon rendering of services. Service income is recorded net of GST.

e)Revenue from Sale of Power from Solar Power System is accounted when the same is transmitted to and
confirmed by Electric Board to whom it is sold.

fJExport incentives principally comprises of Duty Drawback, merchandise exports from India scheme (MEIS) and
RODTEP based on guidelines formulated for the respective scheme by the government authorities. These incentives
are recognized as income on accrual basis in Statement of Profit and Loss only to the extent that
realisation/utilisation is certain.

1.12 Leases

The Company assesses whether a contract contains a lease, at inception of a contract. A contract is, or contains, a
lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for
consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company
assesses whether: (i) the contract involves the use of an identified asset (ii) the Company has substantially all of the
economic benefits from use of the asset through the period of the lease and (iii) the Company has the right to direct
the use of the asset (ROU).

Certain lease arrangements include the options to extend or terminate the lease before the end of the lease term.
ROU assets and lease liabilities includes these options when it is reasonably certain that they will be exercised.

The right-of-use assets are initially recognized at cost, which comprises the initial amount of the lease liability
adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct
costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and
impairment losses.

Right-of-use assets are depreciated on a straight-line basis over the lease term. Right of use assets are evaluated for
recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be
recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less
cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash
flows that are largely independent of those from other assets.

The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease
payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the
incremental borrowing rates in the country of domicile of these leases. Lease liabilities are remeasured with a
corresponding adjustment to the related right of use asset if the Company changes its assessment if whether it will
exercise an extension or a termination option.

1.13 Derivative Financial Instruments and Hedge Accounting:

The Company enters into forward contracts to hedge the foreign currency risk of firm commitments and highly
probable forecast transactions. Derivatives are initially recognized at fair value at the date the derivative contracts
are entered into and are subsequently remeasured to their fair value at the end of each reporting period.

Hedge Accounting:

The Company designates certain hedging instruments in respect of foreign currency risk as cash flow hedges. At the
inception of the hedge relationship, the Company documents the relationship between the hedging instrument and
the hedged item, along with its risk management objectives and its strategy for undertaking various hedge
transactions. Furthermore, at the inception of the hedge and on an ongoing basis, the Company documents whether
the hedging instrument is highly effective in offsetting changes in fair values or cash flows of the hedged item
attributable to the hedged risk.

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The effective portion of changes in the fair value of the designated portion of derivatives that qualify as cash flow
hedges is recognized in other comprehensive income and accumulated under the heading of cash flow hedging
reserve. The gain or loss relating to the ineffective portion is recognized immediately in the statement of profit and
loss.

Amounts previously recognized in other comprehensive income and accumulated in equity relating to (effective
portion as described above) are reclassified to the Statement of Profit and Loss in the periods when the hedged item
affects profit or loss. However, when the hedged forecast transaction results in the recognition of a nonfinancial
asset or a non-financial liability, such gains and losses are transferred from equity and included in the initial
measurement of the cost of the non-financial asset or non-financial liability

Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, or exercised, or when
it no longer qualifies for hedge accounting. Any gain or loss recognized in other comprehensive income and
accumulated in equity at that time remains in equity and is recognized when the forecast transaction is ultimately
recognized in the statement of profit and loss. When a forecast transaction is no longer expected to occur, the gain
or loss accumulated in equity is recognized immediately in the statement of profit and loss.

1.14 Employees'' Benefits:

a) Short term employee benefits

All employee benefits falling due wholly within twelve months of rendering the service are classified as short term
employee benefits and they are recognized as an expense at the undiscounted amount in the Statement of Profit
and Loss in the period in which the employee renders the related service.

b) Other Long term benefits:

Long-term compensated absences are provided for on the basis of an actuarial valuation at the end of each financial
year. Actuarial gains/losses, if any, are recognised immediately in the Statement of Profit and Loss.

c) Post-employment benefits

i) Defined contribution plan

The defined contribution plan is post-employment benefit plan under which the Company contributes fixed
contribution to a government administered fund and will have no obligation to pay further contribution. The
Company''s defined contribution plan comprises of Provident Fund, Employee State Insurance Scheme and Labour
Welfare Fund. The Company''s contribution to defined contribution plans are recognized in the Statement of Profit
and Loss in the period in which employee renders the related service.

ii) Defined benefit plan

The Company s obligation towards gratuity liability is funded to an approved gratuity fund, which fully covers the
said liability under Cash Accumulation Policy of Life Insurance Corporation of India (LIC). The present value of the
defined benefit obligations is determined based on actuarial valuation using the projected unit credit method. The
rate used to discount defined benefit obligation is determined by reference to market yields at the Balance Sheet
date on Indian Government Bonds for the estimated term of obligations. The net interest cost is calculated by
applying the discount rate to the net balance of the defined benefit obligation and fair value of plan assets. Re¬
measurement gains or losses arising from experience adjustments changes in actuarial assumptions is reflected
immediately in the Balance Sheet with a charge or credit recognized in Other Comprehensive Income (OCI) in the
period in which they occur. Re-measurement recognized in OCI is reflected immediately in retained earnings and will
not be reclassified to Statement of Profit and Loss in the subsequent period.

1.15 Income Taxes:

a)Tax expenses comprise of current tax, deferred tax charge or credit and adjustments of taxes for earlier years. In
respect of amounts adjusted against securities premium or retained earnings or other reserves, the corresponding
tax effect is also adjusted against the securities premium or retained earnings or other reserves, as the case may be,
as per the announcement of Institute of Chartered Accountant of India.

bjCurrent Tax is measured on the basis of estimated taxable income for the current accounting period in with the
applicable tax rates and the provisions of the Income-tax Act, 1961 and other applicable tax laws.

cjDeferred tax is provided, on all temporary differences at the reporting date between the tax bases of assets and
liabilities and their carrying amounts for financial reporting purposes. Deferred tax assets and liabilities are
measured at the tax rates that are expected to be applied to the temporary differences when they reverse, based on
the laws that have been enacted or substantively enacted at the reporting date.

Tax relating to items recognized directly in equity or OCI is recognized in equity or OCI and not in the Statement of
Profit and Loss. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax
liabilities and assets and they relate to income taxes levied by the same tax authority, but they intend to settle
current tax liabilities and assets on a net basis or their tax assets and liabilities will be realized simultaneously.

A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available
against which the temporary difference can be utilised. Deferred tax assets are reviewed at each reporting date and
are reduced to the extent that it is no longer probable.

1.16 Earnings per Share:

Basic earnings per share (EPS) are calculated by dividing the net profit or loss (after tax) for the year attributable to
equity shareholders by the weighted average number of equity shares outstanding during the year. The weighted
average number of equity shares outstanding during the period is adjusted for events of bonus issue and share split
if any.

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

1.17 Foreign Currency Transactions:

aJTransactions denominated in foreign currencies are recorded at the exchange rates prevailing on the date of the
transaction.

b) As at balance sheet date, foreign currency monetary items are translated at closing exchange rate. Foreign
currency non-monetary items carried at fair value are translated at the rates prevailing at the date when the fair
value was determined. Foreign currency non-monetary items measured in terms of historical cost are translated
using the exchange rate as at the date of initial transactions.

c) Exchange difference arising on settlement or translation of foreign currency monetary items are recognized as
income or expense in the year in which they arise.

1.18 Financial Instruments:

a. Initial recognition

The Company recognizes financial assets and financial liabilities when it becomes a party to the contractual
provisions of the instrument. All financial assets and liabilities are recognized at fair value on initial recognition,
except for trade receivables which are initially measured at transaction price. Transaction costs that are directly
attributable to the acquisition or issue of financial assets and financial liabilities that are not at fair value through
profit or loss are added to the fair value on initial recognition.

b. Subsequent measurement

(i) Financial assets carried at amortised cost

A financial asset is subsequently measured at amortised cost if it is held within a business model whose objective is
to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise
on specified dates to cash flows that are solely payments of principal and interest on the principal amount
outstanding.

(ii) Financial assets at fair value through other comprehensive income

A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a
business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and
the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding. The Company has made an irrevocable election for its
investments which are classified as equity instruments & trust funds to present the subsequent changes in fair value
in other comprehensive income based on not held for trading.

(iii) Financial assets at fair value through profit or loss

A financial asset which is not classified in any of the above categories are subsequently fair valued through profit or
loss.

(iv) Financial liabilities

Financial liabilities are subsequently carried at amortised cost using the effective interest rate method. For trade and
other payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value
due to the short maturity of these instruments.

c. De-recognition of financial instruments

The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset
expire or it transfers the financial asset and the transfer qualifies for de-recognition under Ind AS 109. A financial
liability (or a part of a financial liability) is derecognised from the Company''s balance sheet when the obligation
specified in the contract is discharged or cancelled or expires.

d. Fair value of financial instruments

In determining the fair value of its financial instruments, the Company uses a variety of methods and assumptions
that are based on market conditions and risks existing at each reporting date. The methods used to determine fair
value include available quoted market prices and discounted cash flow analysis. All methods of assessing fair value
result in general approximation of value and such value may never actually be realised.

1.19 Cash Flow Statement and Cash and Cash Equivalents:

Cash and cash equivalents include cash in hand, bank balances, deposits with banks and all short term highly liquid
investments (with zero exit load at the time of investment) that are readily convertible into known amounts of cash
and are subject to an insignificant risk of changes in value. Cash flows are reported using the indirect method, where
by net profit before tax is adjusted for the effects of transactions 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 are segregated.

1.20 Dividend distribution:

Final equity dividends on shares are recorded as a liability on the date of approval by the shareholders and interim
equity dividends are recorded as a liability on the date of declaration by the Company''s Board of Directors.

1.21 Segment Reporting:

Operating segments have been identified taking into account the nature of the products / services, geographical
locations, nature of risks and returns, internal organization structure and internal financial reporting system. The
Company prepares its segment information in conformity with the accounting policies adopted for preparing and
presenting the financial statements of the Company as a whole. These operating results are regularly reviewed by
the company''s Board of Directors. .........

1.22 Critical accounting judgements and key sources of estimation uncertainty:

The preparation of the Company''s financial statements 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.

Critical judgements and estimates in applying accounting policies:

1) Property, Plant and Equipment:

Property, Plant and Equipment represent a significant proportion of the asset base of the Company. The charge in
respect of periodic depreciation is derived after determining an estimate of an asset''s expected useful life. The
useful lives of the Company''s assets are determined by the management at the time the asset is acquired and
reviewed periodically, including at each financial year end. The lives are based on historical experience with similar
assets as well as anticipation of future events, which may impact their life, such as changes in technical or
commercial obsolescence arising from changes or improvements in production or from a change in market demand
of the product or service output of the asset.

2) Estimation of Defined benefit obligation:

The costs of providing post-employment benefits are charged to the Statement of Profit and Loss in accordance
with Ind AS 19 ''Employee benefits'' over the period during which benefit is derived from the employees'' services.
The costs are assessed on the basis of assumptions selected by the management. These assumptions include salary
escalation rate, discount rates, expected rate of return on assets and mortality rates. The same is disclosed in Note
34.

3) Fair value measurement of Financial Instruments (Refer Note 42):

The management assessed that cash and bank balances, trade receivables, trade payables and other financial assets
and liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

The fair values of the financial assets and liabilities are 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.

The Company has established the following fair value hierarchy that categorises the values into 3 levels. The inputs
to valuation techniques used to measure fair value of financial instruments are:

•Level 1: This hierarchy uses quoted (unadjusted) prices in active markets for identical assets or liabilities. The fair
value of all equity investments, bonds. NCD, mutual funds which are traded in the stock exchanges is valued using
the closing price or NAV or dealer quotations as at the reporting date.

•Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation
techniques which maximize the use of observable market data and rely as little as possible on company 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.

d) Right, Preference and restriction attached to shares:

The Company has only one class of equity shares of Rs. 5/- per share. Each holder of Equity share is entitled to one vote per Equity
Share. The Dividend proposed by the Board of Directors is subject to the approval of Shareholders in the ensuring Annual General
Meeting. In the event of liquidation, the equity shareholders are eligible to receive the remaining asset of the Company, after
distribution of all preferential amount. The distribution will be in proportion to the number of equity share held by shareholders.

e) Details of final dividend declared/paid:

Dividend paid during the year ended March 31, 2026 include an amount of Rs. 6 per equity Share towards equity dividend for the year ended
March 31, 2025 and an amount of Rs. 2 per equity shares towards interim dividend for the year ended March 31, 2026.

Dividend paid during the year ended March 31, 2025 include an amount of Rs. 20 per equity Share towards equity dividend for the year ended
March 31, 2024 and an amount of Rs. 685 per equity shares towards interim dividends for the year ended March 31, 2025.

The Board of Directors has recommended a special dividend of Rs. 3/- per equity share for the financial year ended March 31, 2026. The
recommendation is subject to the approval of shareholders at the annual general meeting and if approved would result in a cash out flow of
approximately Rs. 5,256.90 Lakhs in FV 2026-27.

f) Equity shares movement during five years preceding March 31, 2026:

• Equity shares extinguished on buy back

The Company bought back 19,500 equity shares for an aggregate amount of Rs. 2340 lakhs being 6.84% of the total paid up equity share capital at
Rs. 12,000 per equity share. The equity shares bought back were extinguished on February 16, 2024.

The Company bought back 23,400 equity shares for an aggregate amount of Rs. 5967 lakhs being 19.76% of the total paid up equity share capital at
Rs. 25,500 per equity share. The equity shares bought back were extinguished on November 15, 2022.

The Company bought back 6,600 equity shares for an aggregate amount of Rs. 1359.60 lakhs being 5.28% of the total paid up equity share capital
at Rs. 20,600 per equity share. The equity shares bought back were extinguished on July 28, 2021.

• Equity shares issued on account of Bonus

In FY 2023-24,1,90,000 equity shares of Rs. 100 each were issued as Bonus shares in the ratio of 2:1.

In FY 2024-25, 5,31,000 equity shares of Rs. 100 each were issued as Bonus shares in the ratio of 2:1 on July 15, 2024, sub-division of equity shares
from Rs. 100 to Rs. 5 and 15,93,00,000 equity shares of Rs. 5 each were issued as Bonus shares in the ratio of 10:1 on March 28, 2025.

Capital Reserve

Capital reserve represents grant of capital nature which mainly includes subsidy received from Government.

Retained Earnings

This reserve represents undistributed accumulated earnings of the Company as on the balance sheet date.

General Reserve

Under the erstwhile Companies Act, 1956, general reserve was created through an annual transfer of net income at a specified percentage in
accordance with applicable regulations. The purpose of these transfers was to ensure that if a dividend distribution in a given year is more than
10% of the paid-up capital of the Company for that year, then the total dividend distribution is less than the total distributable results for that
year. Consequent to introduction of the Companies Act 2013, the requirement to mandatorily transfer a specified percentage of the net profit to
general reserve has been withdrawn. However, the amount transferred to the general reserve can be utilised only in accordance with the specific
requirements of the Companies Act, 2013.

Capital Redemption Reserve:

As per Companies Act, 2013, capital redemption reserve is created when company purchases its own shares out of free reserves or securities
premium. A sum equal to the nominal value of the shares so purchased is transferred to capital redemption reserve. The reserve is utilized in
accordance with the provisions of section 69 of the Companies Act, 2013.

Other Comprehensive Income

Other comprehensive income consists of remeasurement gains/ losses on defined benefit plans, gain /(loss) of equity instruments carried through
FVTOCI and cash flow hedge reserves.

30. Financial risk management objectives and policies:

The Company''s principal financial liabilities, other than derivatives, comprise trade and other payables. The main
purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets
include trade and other receivables, investments and cash & cash equivalents that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company''s senior management oversees the
management of these risks. It is the Company''s policy that no trading in derivatives for speculative purposes may be
undertaken. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised
below.

a) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes
in market prices. Market risk comprises two types of risk: (i) interest rate risk and (ii) foreign currency risk. Market risk is
attributable to all market risk sensitive financial instruments including investments and deposits, foreign currency
receivables, payables and borrowings. The sensitivity analyses in the following sections relate to the position as at
March 31, 2026 and March 31, 2025.

The analyses exclude the impact of movements in market variables on: the carrying values of gratuity and other post¬
retirement obligations; provisions.

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 March 31, 2026 and March 31, 2025.

(i) 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
changes in market interest rates. The Company does not any borrowings. Hence interest rates risk is not applicable.

(ii) 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 transacts business in local currency and in foreign currency, primarily in USD.
The Company''s unhedged net receivables in foreign currency as at March 31, 2026 is Rs. 3,088.55 Lakhs (P.Y.24-25
Rs.l,453.59 Lakhs).

b) Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract,
leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade
receivables).

The Company considers the probability of default upon initial recognition of asset and whether there has been a
significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there is a
significant increase in credit risk the Company compares the risk of default occurring on asset as at the reporting date
with the risk of default as at the date of initial recognition.

Financial assets are written off when there are no reasonable expectations of recovery, such as a debtor failing to
engage in a repayment plan with the Company.

Balances with Banks is subject to low credit risk due to good credit rating assigned to these banks. As per simplified
approach, the company makes provision of expected credit losses on trade receivables using a provision matrix to
mitigate the risk of default payments and makes appropriate provision at each reporting date whenever outstanding is
for longer period and involves higher risk. As per the company''s policy, trade receivables are classified into different
ageing buckets based on the period of overdue, ranging from 6 months to more than 3 years. In accordance with the
provisioning norms, receivables that are overdue for more than one year are considered impaired and a provision for
impairment loss is recognized accordingly.

c) Liquidity risk

The Company''s principal source of liquidity are cash and cash equivalents and the cash flow that is generated from
operations. The Company believes that the working capital is sufficient to meet its current requirements.

As on March 31, 2026, the Company had working capital of Rs. 18,655.64 Lakhs (P.Y.24-25 Rs. 15,541.72 Lakhs) including
cash and bank balances of Rs. 1,944.39 Lakhs (P.Y.24-25 Rs. 2,354.94 Lakhs)

34. Employee Benefits (Ind AS 19):

a) Disclosure in respect of gratuity liability

The gratuity payable to employees is based on the employee''s service and last drawn at the time of leaving the services
of the Company and is in accordance with the rules of the Company for payment of gratuity

Inherent Risk

The plan is defined in nature which is sponsored by the Company and hence it underwrites all the risks pertaining to
the plan. In particular, this exposes the Company to actuarial risk such as adverse salary growth, change in demographic
experience, inadequate return on underlying plan assets. This may result in an increase in cost of providing these
benefits to the employees in future. Since the benefits are lump sum in nature, the plan is not subject to any longevity
risk.

Maturity profile

The ''sensitivity analyses above have been determined based on reasonably possible changes of the respective
assumptions occurring at the end of the reporting period and may not be representative of the actual change. It is
based on a change in the key assumption while holding all other assumptions constant. When calculating the sensitivity
to the assumption, the method (Projected Unit Credit Method) used to calculate the liability recognized in the balance
sheet has been applied. The methods and types of assumptions used in preparing the sensitivity analysis did not change
compared with the previous period.

100% of the plan assets held by gratuity trust comprises of employees group gratuity scheme with Life Insurance
Corporation of India. The estimates of future salary increase, considered in actuarial valuation, take account of
inflation, seniority, promotion and other relevant factors such as supply and demand factors in the employment
market. The expected rate of return on plan assets comprising of Insurance Policy with LIC of India is based on the
historical results of returns given by LIC of India.

Asset Liability matching strategy

The money contributed by the Company to the Gratuity fund to finance the liabilities of the plan has to be invested.
The trustees of the plan have outsourced the investment management of the fund to Insurance Company. The
Insurance Company in turn manages these funds as per the mandate provided to them by the trustees and the asset
allocation which is within the permissible limits prescribed in the insurance regulations. Due to the restrictions in the
type of investments that can be held by the fund, it is not possible to explicitly follow an asset liability matching
strategy.

There is no compulsion on the part of the Company to fully prefund the liability of the Plan. The Company''s philosophy
is to fund these benefits based on its own liquidity and the level of underfunding of the plan.

The Company''s expected contribution during next year is Rs. 55.26 Lakh (March 31,2025 Rs. 45.35 Lakh).

b) Disclosure in respect of leave entitlement liability:

The obligation for leave liability is recognized in the same manner as gratuity, amounting to charge of Rs. 45.43 Lakhs in
Profit and Loss Account {Previous Year Rs.22.41 Lakhs).

c) New 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 - 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 regulations. The Company has
assessed and disclosed the incremental impact of these changes on the basis of the best information available,
consistent with the guidance provided by the Institute of Chartered Accountants of India. Incremental impact on
gratuity and leave liability amounting to Rs. 143.73 lakhs and Rs. 18.94 lakhs respectively have been provided in the
financial statement due to change in wage definition. The Company continues to monitor the finalisation of Central /
State Rules and clarifications from the Government on other aspects of the Labour Code and would provide
appropriate accounting effect on the basis of such developments as needed.

Note:

i) Above transactions exclude reimbursement of expenses.

ii) ln case of KMP under the Companies Act, 2013, remuneration excludes gratuity provision as it is determined on
actuarial basis for the Company as a whole.

iii) The Company has incurred costs and expenses relating to the proposed Initial Public Offer (IPO) amounting to Rs.
684.37 Lakhs up to March 31, 2026 on behalf of Promoter Selling Shareholders, Harish Narshi Dharamshi and Kusum
Harish Dharamshi. As per the terms of the offer Agreement dated September 24, 2025, each Promoter Selling
Shareholder shall reimburse the company for such IPO-related expenses on pro-rata basis, in proportion to their shares
expected to be offered to the public.

* includes managerial remuneration of Rs. 500 Lakhs to whole time directors subject to approval of members in annual
general meeting

# subject to approval of members in annual general meeting
Terms and Conditions of transactions with Related Parties:

The transactions with the related parties are made in the normal course of business and on the terms equivalent to
those that prevails in arm''s length transactions. Outstanding balances at the year-end are unsecured.

For the year ended March 31, 2026, the Company has not recorded any impairment of receivables relating to amounts
owned by related parties. This assessment is undertaken each financial year through examining the financial position of
the related party and the market in which the related parties operates.

36. Leases - Ind AS 116
a. As Lessee:

The Company has entered into lease arrangements for office premises that are renewable on a periodic basis with
approval of both lessor and lessee.

The Company in the capacity of lessee has classified each of its leases as either short term leases (having a lease term of
12 months or lower) or as a low value asset and has recognised the lease payments as an expense on either a straight¬
line basis over the lease term or another systematic basis. The related cash flows are classified as Operating activities in
the Statement of Cash Flows

b. As Lessor:

The Company had given a certain part of its property on operating lease. These lease arrangements were for a period of
3 years and cancellable solely at discretion of the either of the party. Rental income from leasing of property of Rs.1.69
Lakhs (P.Y.24-25 Rs. 8.75 Lakhs) is recognized in the Statement of Profit and Loss. The initial direct cost (if any) is
charged off to expenses in the year in which it is incurred.

37. Segment Reporting
BUSINESS SEGMENT:

In the opinion of the management, there is only one segment i.e. Manufacturing and Trading of Fire Fighting
Equipment.

GEOGRAPHICAL SEGMENT:

The Company sells its products to various customers within the country and also exports to other countries.
Considering the size and proportion of exports to local sales, the Company considers sales made within the country and
export as different geographical segment.

44. Capital Management:

The Company s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence
and to sustain future development of the business. Management monitors the return on the capital as well as the level
of dividends to ordinary shareholders. As on date the company has no borrowings.

45. Relation with Strike off Companies:

There is no transaction with struck off Companies during F.Y.2024-25 & F.Y. 2025-26.

46. Investments

As at the year end, the Company held investments in Shares/Mutual Funds/NCD/Bonds/AIF of Rs. 7,887.57 Lakhs
(P.Y.24-25 Rs. 12,737.39 Lakhs). The Company does not expect any impairment or outflow from non-performance by
these counter-parties.

The Company has used accounting software for maintaining its books of account which has a feature of recording audit
trail (edit log) facility, and the same has operated throughout the year for all relevant transactions recorded in the
software.

In the absence of reporting on compliance with audit trail requirements in the respective independent auditor''s reports
of service organisations, the Company is unable to confirm whether the audit trail feature of the said accounting
software was enabled and operated throughout the year at the database level to log any direct data changes for all
relevant transactions recorded in the accounting software, or whether there were any instances of the audit trail
feature being tampered with at the database level.

Further, where the audit trail (edit log) facility was enabled and operated throughout the year, the Company did not
come across any instance of the audit trail feature being tampered with. The audit trail has been preserved by the
Company as per the statutory requirements for record retention, except for non-availability of audit trail at the
database level as mentioned above.

48. ADDITIONAL REGULATORY INFORMATION REQUIRED BY SCHEDULE III TO THE COMPANIES ACT 2013

i. The Company does not have any benami property held in its name. No proceedings have been initiated on or are
pending against the Company for holding benami property Benami Transaction (Prohibition) Act, 1988 (45 of 1988) and
rules made thereunder.

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

iii.Utilisation of Borrowed funds and Share premium:

(a) During the year, the Company has not advanced or loaned or invested funds (either borrowed funds or share
premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities
(Intermediaries) with the understanding (whether recorded in writing or otherwise) 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.

(b) During the year, 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
Funding Party (Ultimate Beneficiaries); or (ii) provide any guarantee, security or the like to or on behalf of the Ultimate
Beneficiaries.

iv. The provision relating to compliance with number of layers of companies prescribed under clause (87) of section 2
of the Companies Act is not applicable to the company.

v. AII title deeds of the immovable property are held in the name of the Company.

vi. The company has not granted any loans or advances to Directors & Key Managerial persons.

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

viii. The Company has not been declared as wilful defaulter by any bank or Financial Institution^ defined under the
Companies Act, 2013) or consortium thereof, in accordance with guidance on wilful defaulters issued by Reserve Bank
of India.

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

x. 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 in the books of account.

1. Shareholder Equity: Equity Share capital Other Equity

2. Cost of Goods Sold: Opening Stock Purchases Direct Expenses - Closing Stock

3. Working Capital: Current Assets - Current Liabilities

4. Capital Employed: Net Worth Total Debt Deferred Tax Liability

5.Investment: Investment includes equity shares, trust funds, NCD''s, AIF, bonds, mutual funds and fixed deposits.

50. Additional information as required by para 5 of General Instructions for preparation of Statement of Profit and Loss (other than
already disclosed above) are either Nil or Not Applicable.

51. Previous year figures are regrouped or rearranged wherever considered necessary to make them comparable.