అకౌంట్స్ గమనికలుShankara Buildpro Ltd.

Mar 31, 2026

2.2.10 Provisions, contingent liabilities and
contingent assets

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

The amount recognized as a provision is the best
estimate of the consideration required to settle the
present obligation at the balance sheet date, taking
into account the risks and uncertainties surrounding
the obligation. When a provision is measured using
the cash flows estimated to settle the present
obligation, its carrying amount is the present value
of those cash flows (when the effect of the time
value of money is material).

When some or all of the economic benefits required
to settle a provision are expected to be recovered

from a third party, a receivable is recognized as an
asset if it is virtually certain that reimbursement will
be received and the amount of the receivable can be
measured reliably.

Contingent Liabilities and Contingent Assets are not
recognized but are disclosed in the notes.

2.2.11 Earnings per share

Basic earnings per share is computed by dividing the
profit after tax / (loss) 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 year is adjusted for events
including bonus issue, bonus element in a rights
issue to existing shareholders, share split and
reverse share split (consolidation of shares). Diluted
earnings per share is computed by dividing the
profit / (loss) after tax attributable to equity
shareholders as adjusted for dividend, interest and
other charges to expense or income (net of any
attributable taxes) relating to the dilutive potential
equity shares, by the weighted average number of
equity shares considered for deriving basic earnings
per share and the weighted average number of
equity shares which could have been issued on the
conversion of all dilutive potential equity shares.

2.2.12 Borrowing costs

Borrowing costs directly attributable to the acquisition,
construction or production of a qualifying asset are
capitalized during the period of time that is
necessary to complete and prepare the asset for its
intended use or sale. Other borrowing costs are
expensed in the period in which they are incurred
under finance costs. Borrowing cost also includes
exchange differences to the extent regarded as an
adjustment to interest costs.

2.2.13 Financial instruments

A financial instrument is any contract that gives rise
to a financial asset of one entity and a financial
liability or equity instrument of another entity.

Financial assets and financial liabilities are initially
measured at fair value or transaction value
wherever appropriate. Transaction costs that are
directly attributable to the acquisition or issue of
financial assets and financial liabilities (other than
financial assets and financial liabilities at fair value

through Statement of Profit and Loss (''FVTPL'') are
added to or deducted from the fair value of the
financial assets or financial liabilities, as
appropriate, on initial recognition.

Transaction costs directly attributable to the
acquisition of financial assets or financial liabilities
at fair value through profit and loss are recognized
immediately in Statement of Profit and Loss.

Trade receivables are recognized when they are
originated.

Trade payables are in respect of the amount due on
account of goods purchased or services availed in
the normal course of business. They are recognized
at the transaction price i.e., the amount payable for
the goods or services, if the transaction does not
contain a significant financing component.

A) Financial Assets

(i) Recognition and initial measurement

All financial assets are recognized initially at fair
value. Transaction costs that are directly
attributable to the acquisition of financial assets
(other than financial assets at fair value through
Statement of Profit or Loss (‘FVTPL'') are added to the
fair value of the financial assets, on initial
recognition. Transaction costs directly attributable
to the acquisition of financial assets at FVTPL are
recognized immediately in Statement of Profit and
Loss.

(ii) Subsequent measurement

For the purposes of subsequent measurement,
financial assets are classified in four categories:

- Debt instruments at amortized cost

- Debt instruments at east through other
comprehensive income (FVTOCI);

- Debt instruments and equity instruments at fair
value through profit or loss (FVTPL);

- Equity instruments measured at fair value through
other comprehensive income (FVTOCI).

Debt instruments at amortized cost

A ‘debt instrument'' is measured at the amortized
cost if both the following conditions are met:

- The asset is held within a business model whose
objective is to hold assets for collecting 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 (SPPI) on the
principal amount outstanding.

After initial measurement, such financial assets are
subsequently measured at amortized cost using the
effective interest rate (EIR) method.

Amortized cost is calculated by taking into account
any discount or premium on acquisition and fees or
costs that are an integral part of the EIR. The EIR
amortization is included under the head finance
income in the profit or loss. The losses arising from
impairment are recognized in the profit or loss. This
category generally applies to trade and other
receivables.

Debt instrument at FVTOCI

A ‘debt instrument'' is classified as FVTOCI if both of
the following criteria are met:

- The objective of the business model is achieved
both by collecting contractual cash flows and selling
the financial assets, and

- The asset''s contractual cash flows represent SPPI.

Debt instruments included within the FVTOCI
category are measured initially as well as at each
reporting date at fair value. Fair value movements
are recognized in the other comprehensive income
(OCI).

Debt instrument at FVTPL

FVTPL is a residual category for debt instruments.
Any debt instrument, which does not meet the
criteria for categorization as amortized cost or as
FVTOCI, is classified as FVTPL. Debt instruments
included within the FVTPL category are measured at
fair value with all changes recognized in the
statement of profit and loss.

In addition, the company may elect to designate a debt
instrument, which otherwise meets amortized cost or
FVTOCI criteria, as FVTPL. However, such election is
chosen only if doing so reduces or eliminates a
measurement or recognition inconsistency (referred
to as ‘accounting mismatch'').

(iii) De-recognition of financial assets

A financial asset is de-recognized only when;

a. The entity has transferred the rights to receive
cash flows from the financial asset or
b. The entity retains the contractual rights to
receive the cash flows of the financial asset, but
expects a contractual obligation to pay the cash
flows to one or more recipients.

Where entity has transferred an asset, the entity
examines and assesses whether it has transferred
substantially all risks and rewards of ownership of
financial asset. In such cases, financial asset is
de-recognized. Where entity has not transferred
substantially all risks and rewards of ownership of
financial asset, such financial asset is not de-recognized.

Where the entity has neither transferred a financial
asset nor retains substantially all risks and rewards
of ownership of the financial asset, the financial
asset is de-recognized, if the entity has not retained
control of the financial asset. Where the entity
retains control of the financial asset is continued to
be recognized to the extent of continuing involvement
in the financial asset.

(iv) Investment in subsidiaries

The company''s investment in equity instruments of
subsidiaries is accounted for at cost as per Ind AS 27,
including adjustment for fair value of obligations, if
any, in relation to such subsidiaries.

Impairment of investments in subsidiaries

Determining whether the investments in
subsidiaries are impaired, requires an estimate in
the value in use of investments. In considering the
value in use, the Board has anticipated the future
commodity prices, capacity utilization of plants,
operating margins, discount rates and other factors
of the underlying businesses / operations of the
investee companies.

Any subsequent changes to the cash flows due to
changes in the above-mentioned factors could impact
the carrying value of investments, necessitating the
recognition of a provision for diminution in value.

B) Financial liabilities and equity instruments

(i) Initial recognition and measurement

All financial liabilities are recognized initially at fair
value giving effect to transaction cost (if any) that is
attributable to the acquisition of the financial
liabilities which is also adjusted.

(ii) Subsequent measurement

The measurement of financial liabilities depends
on their classification, as described below:

Loans and borrowings

After initial recognition, interest-bearing loans and
borrowings are subsequently measured at
amortized cost using the Effective Interest Rate
(EIR) method. Gains and losses are recognized in
profit or loss when the liabilities are
de-recognized through the EIR amortization
process. Amortized cost is calculated by taking into
account any discount or premium on acquisition
and fees or costs that are an integral part of the
EIR. The EIR amortization is included under finance
costs in the statement of profit and loss.

Trade and other payables

These amounts represent liabilities for goods or
services provided to the company which are
unpaid at the end of the reporting period. Trade
and other payables are presented as current
liabilities when the payment is due within a period
of 12 months from the end of the reporting period.

For all trade and other payables classified as
current, the carrying amounts approximate fair
value due to the short maturity of these
instruments. Other payables falling due after 12
months from the end of the reporting period are
presented as non-current liabilities and are
measured at amortized cost unless designated at
fair value through profit and loss at the inception.

The company enters into deferred payment
arrangements (acceptances) whereby lenders such
as banks and other financial institutions make
payments to supplier''s banks for purchase of raw
materials. The banks and financial institutions are
subsequently repaid by the company at a later
date. These are normally settled up to 90 days.
These arrangements for raw materials are
recognized as Acceptances i.e. trade payables and
are included in total outstanding dues of creditors
other than micro enterprises and small
enterprises.

Other financial liabilities at fair value through
profit or loss

Financial liabilities at fair value through profit or
loss include financial liabilities held for trading
and financial liabilities designated upon initial

recognition as at fair value through statement of
profit or loss. Gains or losses on liabilities held for
trading or designated as at FVTPL are recognized in
the profit or loss.

(iii) Derecognition of financial liabilities

A financial liability is de-recognized when the
obligation under the liability is discharged or
cancelled or expires. When an existing financial
liability is replaced by another from the same
lender on substantially different terms, or the
terms of an existing liability are substantially
modified, such an exchange or modification is
treated as the de-recognition of the original
liability and the recognition of a new liability. The
difference in the respective carrying amounts is
recognized in the statement of profit or loss.

C) Offsetting

Financial assets and financial liabilities are offset,
and the net amount is reported in the balance
sheet if there is a currently enforceable legal right
to offset the recognized amounts and there is an
intention to settle on a net basis, to realise the
assets and settle the liabilities simultaneously.

D) Impairment of Financial assets

The Company assesses on a forward looking basis
the expected credit losses associated with its
assets carried at amortised cost. The impairment
methodology applied depends on whether there
has been significant increase in credit risk. Note
46(C)(2) details how the Company determines
whether there has been a significant increase in
credit risk.

For trade receivables, the Company applies the
simplified approach permitted by Ind AS 109
Financial Instruments, which requires Expected
Credit Losses (ECL) to be recognised from initial
recognition of the receivables.

The application of simplified approach does not
require the Company to track changes in credit
risk. Rather, it recognises impairment loss
allowance based on lifetime ECLs at each Balance
Sheet date, right from its initial recognition.

E) Fair value measurement

The Board measures financial instruments at fair
value at each balance sheet date. Fair value is the
price that would be received to sell an asset or
paid to transfer a liability in an orderly transaction

between market participants at the measurement
date. The fair value measurement is based on the
presumption that the transaction to sell the asset
or transfer the liability takes place either:

- In the principal market for the asset or liability, or

- In the absence of a principal market, in the most
advantageous market for the asset or liability
which are accessible to the company.

The fair value of an asset or a liability is measured
using the assumptions that market participants
would use when pricing the asset or liability,
assuming that market participants act in their best
economic interest.

A fair value measurement of a non-financial asset
takes into account a market participant''s ability to
generate economic benefits by using the asset in
its highest and best use or by selling it to another
market participant that would use the asset in its
highest and best use.

Valuation techniques that are appropriate in the
circumstances are used and for which sufficient
data are available to measure fair value,
maximizing the use of relevant observable inputs
and minimizing the use of unobservable inputs. All
assets and liabilities for which fair value is
measured or disclosed in the financial statements
are categorized within the fair value hierarchy,
described as follows, based on the lowest level
input that is significant to the fair value
measurement as a whole:

- Level 1: Quoted (unadjusted) market prices in
active markets for identical assets or liabilities;

- Level 2: Valuation techniques for which the lowest
level input that is significant to the fair value
measurement is directly or indirectly observable,
or

- Level 3: Valuation techniques for which the lowest
level input that is significant to the fair value
measurement is unobservable.

For assets and liabilities that are recognized in the
financial statements on a recurring basis, the
company determines whether transfers have
occurred between levels in the hierarchy by
re-assessing categorisation (based on the lowest
level Input that is significant to the fair value
measurement as a whole) at the end of each
reporting period.

F) Derivative financial instruments

Derivative financial instruments are accounted for
at FVTPL except for derivatives designated as
hedging instruments in cash flow hedge
relationships, which require a specific accounting
treatment. To qualify for hedge accounting, the
hedging relationship must meet several strict
conditions with respect to documentation,
probability of occurrence of the hedged
transaction and hedge effectiveness.

These arrangements have been entered into to
mitigate currency exchange risk arising on account
of repayment of foreign currency term loan and
interest thereon. For the reporting period under
audit, the company has not designated any
forward currency contracts as hedging
instruments.

2.2.14 Cash and cash equivalents and cash flow
statement

Cash comprises cash on hand and demand
deposits with banks. Cash equivalents are
short-term balances (with maturity of three
months or less from the date of acquisition), highly
liquid investments that are readily convertible into
known amounts of cash and which are subject to
insignificant risk of changes in value.

Cash flows are reported using the Indirect method,
whereby profit/ (loss) before extraordinary items
and tax is appropriately classified for the effects of
transactions of non-cash nature and any deferrals
or accruals of past or future cash receipts or
payments. In cash flow statement, cash and cash
equivalents include cash in hand, balances with
banks in current accounts and other short-term
highly liquid investments with original maturities
of three months or less.

2.215 Dividend on ordinary shares

The entity recognizes a liability to make cash or
non-cash distributions to equity holders of the
company when the distribution is authorized, and
the distribution is no longer at the discretion of
the company. The amount so authorised is
recognized directly in equity.

Final dividend proposed and distributed to equity
shareholders is recognized only in the financial
year in which it is approved by the members of the
Company in the Annual General Meeting. Interim
dividends are recognized when approved by the

Board of Directors at the Board Meeting. Dividend
distributed is recognized in the Statement of
Changes in Equity.

2.2.16 Segment reporting

1. The company is primarily engaged in the
business of Trading and retailing of home
improvement and building products which is a
single business segment.

2. The operation of the company are fully within
India and hence, there are no reportable
geographical segments.

3. The chief operating decision maker reviews the
entity as a single reportable segment as
mentioned above.

2.2.17 Key sources of estimation uncertainty and
critical accounting judgements

In the course of applying the policies outlined in
all notes under section 2 above, the company is
required to make judgements, estimates and
assumptions about the carrying amount of assets
and liabilities that are not readily apparent from
other sources. The estimates and associated
assumptions are based on historical experience
and other factors that are considered to be
relevant. Actual results may differ from these
estimates.

The estimates and underlying assumptions are
reviewed on an ongoing basis. Revisions to
accounting estimates are recognized in the period
in which the estimate is revised if the revision
affects only that period, or in the period of the
revision and future period, if the revision affects
current and future period.

A) Useful lives of Property, Plant and Equipment

The Board reviews the useful lives of Property,
Plant and Equipment once a year. Such lives are
dependent upon an assessment of both the
technical lives of the assets and also their likely
economic lives based on various internal and
external factors including relative efficiency and
operating costs. Accordingly depreciable lives are
reviewed annually using the best information
available to the Management.

B) Provisions and liabilities

Provisions and liabilities are recognized in the
period when it becomes probable that there will
be a future outflow of funds resulting from past

operations or events that can reasonably be
estimated. The timing of recognition requires
application of judgement to existing facts and
circumstances which may be subject to change.
The amounts are determined by discounting the
expected future cash flows at a pre-tax rate that
reflects current market assessments of the time
value of money and the risks specific to the
liability.

C) Contingencies

In the normal course of business, contingent
liabilities may arise from litigation and other
claims against the company. Potential liabilities
that are possible but not probable of crystalizing
or are very difficult to quantify reliably are treated
as contingent liabilities. Such liabilities are
disclosed in the notes but are not recognized.

3 Recent Pronouncements

Ministry of Corporate Affairs (“MCA”) notifies new
standards or amendments to the existing
standards under Companies (Indian Accounting
Standards) Rules as issued from time to time.

In May 2025, MCA notified amendments to Ind AS 21
- The Effects of Changes in Foreign Exchange Rates,
applicable w.e.f. April 1, 2025. The Company has
reviewed the amendment and based on its
evaluation has determined that it does not have
any significant impact in its financial statements.

In August 2025, MCA notified the following
amendments to:

1. Ind AS 1 - Presentation of Financial Statements,
applicable w.e.f. April 1, 2025 - The amendment
relates to classification of liabilities as current or
noncurrent and non-current liabilities with
covenants. In the context of classifying a liability
as current, it removes the requirement of
existence of a right to defer settlement for at
least 12 months after the reporting date and
instead requires that the said right should exist
on the reporting date and have substance. The
amendment also introduces guidance on
classification of liabilities with covenants. The
Company has no impact of these amendments
in its classification criteria of current and
non-current liabilities.

2. Ind AS 7 - Statement of Cash Flows and Ind AS
107 - Financial Instruments: Disclosures,
applicable w.e.f. April 1, 2025 - The amendment
in Ind AS 7 requires to inform users of financial
statements of the existence of supplier finance
arrangements and explain the nature of the
arrangements, the carrying amount of
liabilities and the range of payment due dates.
Ind AS 107 has been amended to add supplier
finance arrangements as a factor that may
cause concentration of liquidity risk. The
Company has no impact of these amendments
in its financial statements.

3. Ind AS 12 - International Tax Reform - Pillar Two
Model Rules applicable immediately - The
amendments provide a temporary mandatory
relief from deferred tax accounting for top-up
tax and disclose that they have applied the
relief. The Company has no impact of these
amendments in its financial statements.

Note:

a) The assets relating to the trading business of Shankara Building Products Limited stand transferred to
the company with effect from 01st April, 2024 pursuant to Scheme of Arrangement. Accordingly, said
assets were recorded at the values as certified by the auditors of the Demerged Undertaking as per the
Special Purpose Financial Statements for the year 1st April 2024 to 31st March 2025.

Note: Purple Splash Materials Private Limited ("Subsidiary company") was incorporated on 20th April 2025.
The Company has subscribed to 51% viz., 5,100 equity shares of T 10 each aggregating to T 51,000 (0.0051
Crores). The Company has made the payment to the Subsidiary on 15th September 2025 and accordingly
the shares were allotted to the Company.

i) Increase in authorised share capital: The shareholders of the Company in the Extraordinary General
Meeting (EGM) held on 16th July 2025, have approved by passing a special resolution for increase in the
authorised share capital to 3,00,00,000. equity shares of face value of INR 10/- (Rupees Ten) each,
amounting to T 30,00,00,000.

ii) Pursuant to the Scheme of Arrangement, the Company in its board meeting held on 26th September,
2025 has approved the allotment of 2,42,49,326 (Two crores forty two lakhs forty nine thousand three
hundred and twenty six) Equity Shares of T 10 each, aggregating to T 24.25 Crores, to the Equity
Shareholders of the demerged company, whose name where recorded in the Register of Members of the
demerged company as on the record date i.e., 24th September, 2025.

iii) Pursuant to the scheme, 10,000 equity shares of T10 each aggregating to T 0.01 Crores, subscribed by
the Holding Company viz., Shankara Building Products Limited ("Demerged Company" / " Holding
Company") stand cancelled on 26th September 2025 and accordingly Shankara Building Products Limited
(Demerged company) stand ceased to be the Holding company.

b) Rights, preferences and restrictions

(i) Rights, preferences and restrictions attached to shares and terms of conversion of other securities
into equity.

The company has one class of equity shares having par value of T10 each. Each share holder is eligible
for one vote per share held and carry a right to dividend. In the event of liquidation, the equity share
holders are eligible to receive the remaining assets of the company after distribution of all preferential
amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

(ii) There are no restrictions attached to equity shares.

e) From the Date of Incorporation (13-10-2023) till 31-03-2026:

i) The Company has allotted 2,42,49,326 equity shares of T10 each as fully paid-up without payment
being received in cash. Refer note 18 (ii))

ii) The Company has not allotted any equity shares by way of bonus issue.

iii) The Company has not bought back any equity shares.

iv) There are no shares reserved for issue under Options and Contracts / Commitments for the sale of
shares/ Dis-investment.

v) The Board of directors have recommended payment of final dividend T5/- (Rupees Five only) per
equity share of the face value of T10 each for the financial year ended 31-03-2026.

Capital Reserve

Reserve is created on demerger as per the Scheme of Arrangement
Retained earnings

Surplus in Statement of Profit and Loss is part of retained earnings. This is available for distribution to
shareholders as dividend and capitalisation.

23. INCOME TAXES

Indian companies are subject to Indian income tax on a standalone basis. Each entity is assessed to
tax on taxable profits determined for each fiscal year beginning on April 1 and ending on March 31.

Incomes are assessed based on book profits prepared under generally accepted accounting principles
in India adjusted in accordance with the provisions of the Income tax Act, 1961. Such adjustments
generally relate to depreciation of fixed assets, disallowances of certain provisions and accruals, the
set-off of tax losses and depreciation carried forward and retirement benefit costs.

The Company has opted to exercise the option permitted under section 115BAA of the Income-tax Act,
1961. Accordingly, the Company has made a provision for Income tax and re-measured its deferred tax
at the rate prescribed by the section.Income tax is charged at 22% plus surcharge of 10% plus health
and education cess of 4%.

Terms and Security:

1) Working capital loans are repayable on demand
and carries interest @ 7.9% to 12.95% p.a. and
secured by:

a) First charge on the existing and future current
assets belonging to the company.

b) Guarantee by the Managing Director.

2) Other Loans- Purchase bills discounting and
financing of T0.44 crores (PY T8.52 crores) is
guaranteed by the Managing director.

Other disclosures (for both current and
non-current borrowings)

(i) Quarterly returns or statements of current
assets filed by the company with banks are in
agreement with the books of accounts.

(ii) The company has adhered to the debt
repayment and interest service obligations on time.

The company has not been declared as wilful
defaulter by any bank or financial institution.

(iii) All applicable cases where registration of
charges or satisfaction is required to be filed with
Registrar of Companies have been filed. No
registration or satisfaction is pending as at the
31.03.2026

(iv) Pursuant to the Scheme of Arrangement, with
respect to the borrowings transferred to the
Resulting Company''s books, the Company is taking
necessary steps to change the name in the
respective records viz., Banks, Registrar of
Companies etc.,

(v) Term loans were applied for the purposes for
which they were obtained. Further short term loans
availed have not been utilised for long term
purposes.

The company does not have any potential equity shares. Accordingly, basic and diluted earnings per
share would remain the same.

* For the period 31st March 2025, the WANES includes equity shares which will be issued to the erstwhile
shareholders of the demerged undertaking as on the reporting date (Refer Note 18 (ii)) pursuant to
Scheme of Arrangement and excludes 10,000 shares which is currently held by the Demerged company.

40. Operating lease
As lessee:

Various Buildings have been taken on lease term
between 11 and 144 months for office premises,
storage space and retail shop, which are renewa¬
ble on a periodic basis by mutual consent of both
parties.

Ind AS 116 requires lessees to determine the lease
term as the non-cancellable period of a lease
adjusted with any option to extend or terminate
the lease, if the use of such option is reasonably
certain. The reporting entity makes an assessment
on the expected lease term on a lease-by-lease
basis and thereby assesses whether it is reasona¬
bly certain that any options to extend or terminate
the contract will be exercised.

For the short-term and low value leases, the
reporting entity recognizes the lease payments as
an operating expense on a straight-line basis over
the term of the lease.

As regards the premises owned by the
demerged undertaking and used by the Company
for its trading business, pursuant to the decision
of the Board of Directors of both the Companies,
no rental expense has been accounted for the
period from 1st April 2024 till the effective date. In
the opinion of the management, as the amount
due to / due from the demerged undertaking as at
the effective date shall stand cancelled and will
not be accounted for in the books of the Company,
there will not be any impact in the reserves as at
the reporting date.

41. Segment Reporting

(i) The company is primarily engaged in the
business of Trading and retailing of home
improvement and building products which is a
single business segment.

(ii) The operation of the company are fully within
India and hence, there are no reportable
geographical segments.

(iii) The chief operating decision maker review the
entity as a single reportable segment as
mentioned above.

42. Additional Information

Disclosure required under Section 22 of Micro,
Small and Medium Enterprises Development
(''MSMED'') Act, 2006

b)Defined benefit plan

(i) Gratuity

The Company has funded the gratuity liability
ascertained on actuarial basis, wherein every
employee who has completed five years or more
of service is entitled to gratuity on retirement or
resignation or death calculated at 15 days salary
for each completed year of service, subject to a
maximum of T 20 lacs per employee. The vesting
period for Gratuity as payable under The Payment
of Gratuity Act,1972 is 5 years.

The plans in India typically expose the Company to
actuarial risks such as: investment risk, interest
rate risk, longevity risk and salary risk.

Investment risk: The present value of the defined
benefit plan liability is calculated using a discount
rate determined by reference to government bond
yields; if the return on plan asset is below this rate,
it will create a plan deficit.

Interest risk: A decrease in the bond interest rate
will increase the plan liability; however, this will be
partially offset by an increase in the return on the
plan''s debt investments.

Longevity risk: The present value of the defined
benefit plan liability is calculated by reference to
the best estimate of the mortality of plan
participants both during and after their
employment. An increase in the life expectancy of
the plan participants will increase the plan''s
liability.

Salary risk: The present value of the defined
benefit plan liability is calculated by reference to
the future salaries of plan participants. As such, an
increase in the salary of the plan participants will
increase the plan''s liability.

There are no other post-retirement benefits
provided to employees.

The most recent actuarial valuation of the plan
assets and the present value of the defined
benefit obligation were carried out at 31-03-2026.
The present value of the defined benefit
obligation, and the related current service cost
and past service cost, were measured using the
projected unit credit method.

The Company expects to contribute T3.25 crores to
its gratuity plan for the next year.

In assessing the Company''s post retirement
liabilities, the Company monitors mortality
assumptions and uses up-to date mortality tables,
the base being the Indian assured lives mortality
(2012-14) ultimate.

Expected return on plan assets is based on
expectation of the average long term rate of return
expected on investments of the fund during the
estimated term of the obligations after
considering several applicable factors such as the
composition of plan assets, investment strategy,
market scenario, etc.

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 in the
employment market.

The discount rate is based on the prevailing
market yields of Government of India securities as
at the balance sheet date for the estimated term
of the obligations.

Sensitivity Analysis:

Significant actuarial assumptions for the
determination of the defined benefit obligation
are discount rate, expected salary increase and
mortality. The sensitivity analysis below have been
determined based on reasonably possible
changes of the respective assumptions occurring
at the end of the reporting period, while holding
all other assumptions constant.

The sensitivity analysis presented above may not
be representative of the actual change in the
defined benefit obligation as it is unlikely that the
change in assumptions would occur in isolation of
one another as some of the assumptions may be
correlated.

plan members is 5.5 years (PY 6 years) as at the
valuation date which represents the weighted
average of the expected remaining lifetime of all
plan participants.

The expected maturity analysis of the benefit
payments of gratuity is as follows:

The Company had deployed its investment assets
in an insurance plan which is invested in market
linked bonds. The investment returns of the
market-linked plan are sensitive to the changes in
interest rates as compared with the investment
returns from the smooth return investment plan.
The liabilities'' duration is not matched with the
assets'' duration.

The liabilities of the fund are funded by assets.
The company aims to maintain a close to
full-funding position at each Balance Sheet date.
Future expected contributions are disclosed
based on this principle.

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

46. Financial Instruments

A.Capital Management

(l)Capital risk management

The Company''s capital requirements are mainly to
fund its expansion, working capital and strategic
acquisitions. The principal source of funding of the
Company has been, and is expected to continue to
be, cash generated from its operations
supplemented by borrowings from bank and funds
from capital markets. The Company is not subject
to any externally imposed capital requirements.

The Company regularly considers other financing
and refinancing opportunities to diversify its debt
profile, reduce finance cost and closely monitors
its judicious allocation amongst competing
expansion projects and strategic acquisitions, to
capture market opportunities at minimum risk.

The Company monitors its capital using gearing
ratio, which is net debt divided to total equity. Net
debt includes, interest bearing loans and
borrowings less cash and cash equivalents.

i) Equity includes all capital and reserves of the Company that are managed as capital.

ii) Debt is defined as long and short term borrowings (excluding financial guarantee contracts), as
described in Note 20 and 24

The Company has an Audit & Risk Management
Committee established by its Board of Directors
for overseeing the Risk Management Framework
and developing and monitoring the Company''s
risk management policies. The risk management
policies are established to ensure timely
identification and evaluation of risks, setting
acceptable risk thresholds, identifying and
mapping controls against these risks, monitor the
risks and their limits, improve risk awareness and
transparency. Risk management policies and
systems are reviewed regularly to reflect changes
in the market conditions and the Company''s
activities to provide reliable information to the
Management and the Board to evaluate the
adequacy of the risk management framework in

The risk management policies aims to mitigate the
following risks arising from the financial
instruments:

- Market risk

- Credit risk; and

- Liquidity risk

(1) 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 the market prices. The
Company is exposed in the ordinary course of its
business to risks related to changes in commodity
prices and interest rates.

(i) Currency Risk

Sensitivity

Currency risks related to the amounts of foreign
currency loans are fully hedged using derivatives
that mature on the same dates as the loans are
due for repayment.

(ii) Commodity price risk:

The Company''s revenue is exposed to the market
risk of price fluctuations related to the sale of its
steel and other building products. Market forces
generally determine prices for the steel products
sold by the Company. These prices may be
influenced by factors such as supply and demand,
production costs (including the costs of raw
material inputs) and global and regional economic
conditions and growth. Adverse changes in any of
these factors may reduce the revenue that the
Company earns from the sale of its steel products.

The Company purchases the steel and other
building products in the open market from third
parties as well as from subsidiaries at prevailing
market price. The Company is therefore subject to
fluctuations in the prices of steel coil, steel
pipes,sanitary wares etc.

The Company aims to sell the products at
prevailing market prices. Similarly the Company
procures the products based on prevailing market
rates as the selling prices of steel products and
the prices of inputs move in the same direction.

Inventory Sensitivity Analysis (Stock in trade)

A reasonably possible changes of 1% in prices of
inventory at the reporting date, would have
increased (decreased) equity and profit or loss by
the amounts shown below. The analysis assumes
that all other variables remain constant.

(iii) Interest rate risk

Interest rate risk is the risk that the fair value or
future cash flows of a financial instrument will
fluctuate because of changes in market interest
rates. The Company is exposed to interest rate risk
since funds are borrowed at both fixed and

floating interest rates. Interest rate risk is
measured by using the cash flow sensitivity for
changes in variable interest rate. The borrowings
of the Company are principally denominated in
rupees. The risk is managed by the Company by
maintaining an appropriate mix between fixed and
floating rate borrowings.

(2) Credit risk management:

Credit risk refers to the risk that a counterparty will
default on its contractual obligations resulting in
financial loss to the Company. Credit risk
encompasses of both, the direct risk of default and
the risk of deterioration of credit worthiness as well
as concentration risks.

Company''s credit risk arises principally from the
trade receivables, advances and financial
guarantees furnished to the lenders of the
subsidiaries.

(i) Trade receivables:

Customer credit risk is managed centrally by the
company and subject to established policy,

procedures and control relating to customer credit
risk management. Credit quality of a customer is
assessed based on financial position, past
performance, business/ economic conditions,
market reputation, expected business etc. Based on
that credit limit & credit terms are decided.
Outstanding customer receivables are regularly
monitored

Trade receivables consist of a large number of
customers spread across diverse industries and
geographical areas with no significant
concentration of credit risk. The outstanding trade
receivables are regularly monitored and
appropriate action is taken for collection of overdue
receivables.

Liquidity risk refers to the risk of financial distress
or extraordinary high financing costs arising due
to shortage of liquid funds in a situation where
business conditions unexpectedly deteriorate and
requiring financing. The Company requires funds
both for short term operational needs as well as
for strategic acquisitions. The Company generates

sufficient cash flow for operations, which together
with the available cash and cash equivalents and
borrowings provide liquidity. The Company
manages liquidity risk by maintaining adequate
reserves, banking facilities and reserve borrowing
facilities, by continuously monitoring forecast and
actual cash flows, and by matching the maturity
profiles of financial assets and liabilities.

The following tables detail the Company''s
remaining contractual maturity for its
non-derivative financial liabilities with agreed
repayment periods and its non-derivative
financial assets. The tables have been drawn up
based on the undiscounted cash flows of financial
liabilities based on the earliest date on which the
Company can be required to pay. The tables

include both interest and principal cash flows.

With respect to floating rate, the undiscounted
amount is derived from interest rate curves at the
end of the reporting period. The contractual
maturity is based on the earliest date on which the
Company may be required to pay.

47. Corporate social responsibility

Requirements of Section 135 of the Companies Act,
2013 are applicable to the Company for the year
ended March 31, 2026 and not applicable for the
year ended March 31, 2025.

a) Gross amount required to be spent by Company
during the year - f 1.01 Crores (Previous year: f. Nil)

b) Amount spent during the year:

Amount paid is included under Other expenses
(refer note no 37)

(c) Nature of CSR Activities- Healthcare
infrastructure, education, environment
sustainability, rehabilitating abandoned women
and children.

Note: Balance unspend amount of f0.77 crores will
be transferred to specified fund within the due
date. i.e, September 30, 2026.

48. Code of Social Security, 2020

Pursuant to the notification issued by the Ministry
of Labour and Employment, twenty-nine existing

labour regulations have been consolidated into a
unified framework comprising four Labour Codes,
collectively referred to as the ''New Labour Codes''
which became effective from 21st November 2025.
The Company has reassessed its employee benefit
obligations in accordance with the New Labour
Codes and accordingly, an incremental liability of
f2.61 crores has been recognized as an Exceptional
Item during the year ended 31st March 2026. As the
rules for the New Labour Codes are yet to be
notified, the impact of those will be evaluated and
accounted for in the period in which they are
notified.

50. No proceedings have been initiated or
pending against the Company for holding Benami
property under the Benami Transactions
(Prohibition) Act, 1988 (45 of 1988) and the Rules
made there under

51. 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 what¬
soever 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 beneficiary

52. 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 what¬
soever by or on behalf of the Funding Party
(Ultimate Beneficiaries) or

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

53. The Company has not operated in any crypto
currency or Virtual Currency transactions

54. The Company has no transactions with the
struck off companies under section 248 of
Companies Act, 2013.

55. During the year the Company has not
discLosed or surrendered, any income other than
the income recognised in the books of accounts in
the tax assessments under Income Tax Act, 1961.

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

of the Companies Act, 2013 read with Companies
(Restriction on number of Layers) Rules, 2017.

57. The scheme of arrangement amongst the
Company (“SBL” or “Resulting Company”),
Shankara Building Products Limited (“SBPL” or
“Demerged Company” or “erstwhiLe hoLding
company”) and their respective sharehoLders and
creditors, was approved by the Board of Directors
of the Company and SBPL on 18th December 2023,
providing for the demerger of the “Trading
Business” of the Demerged Company to the
Company in compliance with Sections 230 to 232
and other applicable provisions of the Companies
Act, 2013 (the "Scheme").

The Company has received the order from Hon''ble
National Company Law Tribunal, Bengaluru Bench
(‘NCLT'') dated 21st August 2025 wherein the NCLT
has approved the Scheme. The scheme has
become effective on 9th September 2025 upon
filing of the certified copies of the NCLT Order,
sanctioning the scheme, with the respective
jurisdictional Registrar of Companies.

The demerged company has given effect to the
scheme by transferring specific income, expenses,
assets, liabilities and reserves relating to trading
business as prescribed in the scheme, comprised
in the demerged Company and vested in the
resulting Company, at the respective carrying
values as appearing in the books of the demerged
company with effect from 1st April 2024, being the
appointed date.

58. Events occurring after the Balance
Sheet date

The Board has recommended a final dividend of
^/-(Rupees five only) per equity share (face value
of f 10/- each) for the financial year ended
31-03-2026 aggregating to f12.12 crores subject to
the approval of shareholders in the ensuing
Annual General Meeting.

59. The previous year figures have been regrouped / rearranged wherever necessary to conform to the
current year presentation.