EPack Prefab Technologies Ltd. இன் கணக்கு குறிப்புகள்

1.14Provisions, contingent liabilities and
contingent assets:

Provisions are recognised when the Company has a
present obligation (legal or constructive) as a result of a
past event, it is probable that an outflow of resources
embodying economic benefits will be required to
settle the obligation and a reliable estimate can be
made of the amount of the obligation. If the effect of
the time value of money is material, provisions are
discounted using a current pre-tax rate that reflects,
when appropriate, the risks specific to the liability.
When discounting is used, the increase in the provision
due to the passage of time is recognised as a finance
cost.

A contingent liability is-

( a ) a possible obligation that arises from past events and
whose existence will be confirmed only by the
occurrence or non-occurrence of one or more
uncertain future events not wholly within the control of
the entity or

( b ) a present obligation that arises from past events but is
not recognised because:

(i) it is not probable that an outflow of resources
embodying economic benefits will be required to
settle the obligation or

(ii) the amount of the obligation cannot be measured with
sufficient reliability.

Disclosure of contingent liability is made 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 or a present obligation that arises
from past events where it is either not probable that an
outflow of resources embodying economic benefits
will be required to settle or a reliable estimate of
amount cannot be made.

A contingent asset is a possible asset that arises from
the past events and whose existence will be confirmed
only by the occurrence or non- occurrence of one or
more of uncertain future events not wholly within the
control of the entity. Contingent assets are disclosed in
the Ind AS Financial Statements by way of notes to
accounts when an inflow of economic benefits is
probable.

1.15 Revenue recognition (Revenue from Contracts
with Customers):

The Company derives revenue primarily from sale of
manufactured products being “EPS (Expanded
Polystyrene) Packaging and Pre-engineered and
Prefabricated Building Solutions”. Revenue from
contracts with customers is recognised when the
control of the goods or services are transferred to the
customer at an amount that reflects the consideration
to which the Company expects to be entitled in
exchange for those goods or services.

( a ) Sale of goods and services:

Revenue from sale of goods (including cartage) /
services are recognised at the point of time when
control of the promised goods/services are transferred
to the customer, generally on dispatch/delivery of the
goods/services except in case of export sales, which are
recognised on the basis of bill of lading on satisfaction
of performance obligation and transfer of control.

Sale of goods/services are recognised net of sales
returns and trade discounts. Sales excludes amounts of
indirect taxes on sales.

Sale of Pre-engineered and Prefabricated
Building Contracts:

In respect of Pre-engineered and Prefabricated
Building Contracts, revenue is recognised over a period
of time using the input method (equivalent to
percentage-of-completion method) of accounting
with contract costs incurred determining the degree of
completion of the performance obligation.

Revenue is measured based on the transaction price,
which is the consideration, adjusted for volume
discounts, price concessions and incentives, if any, as
specified in the contract with the customer. Revenue
also excludes taxes collected from customers on behalf
of the government.

Contracts are combined when the Company believes
the underlying goods and services are a single
performance obligation, single commercial objectives
or the consideration in one contract depends on
another. Otherwise, contracts are separated.

With respect to contracts where revenue is recognised
over time, the Company measures the value of services
for which control is transferred to the customer over
time based on certification of work completed.

When it is probable that total contract costs will exceed
total contract revenue, the expected loss is recognised
as an expense in the Statement of Profit and Loss in the
period in which such probability occurs. Due to the
uncertainties attached, the revenue on account of
extra claims are accounted for at the time of
acceptance / settlement by the customers.

Liquidated Damages represents the expected claim
which the Company may need to pay for non¬
fulfilment of certain commitments as per terms of
respective sales contracts. These are determined on
case to case basis considering the dynamics of each
contracts and factors relevant to that sale.

Installation Services:

The Company provides installation services that are
bundled together with the sale of products to a
customer. Contracts for bundled sale of products and
installation services are considered as one
performance obligations because company believes
underlying goods and services are a single
performance obligations single commercial objectives
or the consideration in one contract depends on
another. Hence the installation services has been
considered as a part of Sale of Pre-engineered building
contracts.

Sale of Building Materials:

Revenue from sale of Building Materials are
recognised at a point in time when control of the asset
is transferred to the customers generally on delivery of
goods/materials. The payment terms depend upon
each contract entered into with the customer.

Variable Consideration:

If the consideration in a contract includes a variable
amount, the Company estimate the amount of
consideration to which it will be entitled in exchange
for transferring the goods to the customers. The
variable consideration is estimated at the contract
inception 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.

Significant Financing Component:

The company applies the practical expedient for short
term advances received from customers. That is, the
promised amount of consideration is not adjusted for
the effects of a significant financing component if the
year between the transfer of the promised goods or
service and the payment is one year or less.

(b) Contract Balances:

(i) Contract Assets:

Revenue earned but not billed to customers against
erection and sale of goods and services is reflected as
Contract Assets because the receipt of consideration is
conditional on Company''s performance under the
contract (i.e. transfer control of related goods or
services to the Customers). On completion of
installation and acceptance by the customer, the
amount recognised as contract asset is reclassified to
Trade Receivables.

Contract Assets are subject to impairment assessment
(refer material accounting policies related to
impairment of financial assets).

(ii) Contract Liabilities:

A contract liability is recognised if a payment is received
or payment is due (whichever is earlier) from a contract
before the company transfers the related goods or
services. Contract liabilities are recognised as revenue
when the Company performs under the contract (i.e.
transfers control of the related goods or services to the
customers).

© Dividend and interest income:

Dividend income from investments is recognised
when the Company''s right to receive the payment has
been established, which is generally when
shareholders approve the dividend.

Interest income from a financial asset is recognised
when it is probable that the economic benefits will flow
to the Company and the amount of income can be
measured reliably. Interest income is accrued on time
basis, by reference to the principal outstanding and at
the effective interest rate applicable.

For all debt instruments measured either at amortised
cost or at fair value through other comprehensive
income (FVTOCI), interest income is recorded using the
effective interest rate (EIR), which is the rate that
exactly discounts the estimated future cash payments
or receipts over the expected life of the financial
instrument or a shorter period, where appropriate, to
the gross carrying amount of the financial asset or to
the amortised cost of a financial liability. Interest
income is included in other income in the statement of
profit and loss.

(d) Rental income:

Rental income from investment property is recognised in the statement of profit and loss over the term of the lease.

(e) Insurance claims:

Claims raeceivable on account of insurance are accounted for to the extent no significant uncertainty exists for the
measurement and realisation of the amount.

Insurance claims, other than claim filed against fire accident, have been booked on receipt basis.

(f) Miscellaneous income:

All other income is recognized on an accrual basis, when there is no uncertainty in its ultimate realization/collection.

1.16 Government grants, subsidies and export incentives:

Government grants are recognised where there is reasonable assurance that the grant will be received and all
attached conditions will be complied with.

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

Government grants/subsidies relating to the purchase of property, plant and equipment are deducted from the
Carrying amount of the Assets. The Grant is recognised in the Statement of Profit and Loss over the useful life of the
depreciable assets.

1.17 Inventories:

Inventories have been valued on the following basis:

Further imported goods received and laying at port as at balance sheet date and the same is received in
factory during the subsequent month has been included in Inventories as goods in transit as at balance
sheet date.

The comparison of cost and net realisable value is made on an item-by item basis. Net realisable value is
the estimated selling price in the ordinary course of business less estimated cost of completion and
estimated costs necessary to make the sale.

Short-Term Employee Benefits

All employee benefits payable wholly within twelve
months of rendering the service are classified as short¬
term employee benefits and they are recognised in the
period in which the employee renders the related
services. The undiscounted amount of short-term
employee benefits expected to be paid in exchange for
the services rendered by employees are recognised as
an expense during the period when the employees
render the services.

Post-Employment Benefits

Defined contribution plans:

The Company''s contribution paid/payable during the
period to Provident fund, Superannuation Fund and
Pension Scheme and other welfare funds are
considered as defined contribution plans.

Recognition and measurements of defined
contribution plan:

The contribution paid/payable under those plans are
recognised as an expense, in the statement of
profit and loss during the period in which the
employee renders the services.

If the contribution payable to the scheme for service
received before the balance sheet date exceeds the
contribution already paid, the deficit payable to the
scheme is recognised as a liability. If the contribution
already paid exceeds the contribution due for services
received before the balance sheet date, then excess is
recognised as an asset to the extent that the pre¬
payment will lead to a reduction in future payment or a
cash refund.

Defined benefit plans:

The Company pays gratuity to the employees who
have completed five years of service with the Company
at the time of resignation superannuation. The gratuity
is paid @15 days'' basic salary for every completed year
of service as per the Payment of Gratuity Act, 1972.

Recognition and measurements of defined
benefit plan:

The liability in respect of gratuity and other post¬
employment benefits is calculated using the projected
unit credit method and spread over the period during
which the benefit is expected to be derived from
employees'' services.

Actuarial gains and losses are recognised immediately
in other comprehensive income.

The tax expenses for the period comprises of current
tax and deferred income tax. Tax is recognised in
statement of profit and loss, except to the extent that it
relates to items recognised in other comprehensive
income, in which case, the tax is also recognised in
other comprehensive income.

(a) Current tax:

Current tax is the amount of income taxes payable in
respect of taxable profit for a period. Taxable profit
differs from ''profit before tax'' as reported in the
statement of profit and loss because of items of income
or expense that are taxable or deductible in other years
and items that are never taxable or deductible under
the Indian Income Tax Act, 1961.

Current tax is measured using tax rates that have been
enacted by the end of reporting period for the amounts
expected to be recovered from or paid to the taxation
authorities.

Current tax assets and liabilities are measured at the
amount expected to be recovered from or paid to the
income tax authorities, based on tax rates and laws that
are enacted at the balance sheet date.

(b) Deferred tax:

Deferred tax is recognised on temporary differences
between the carrying amounts of assets and liabilities
in the Ind AS Financial Statements and the
corresponding tax bases used in the computation of
taxable profit.

Deferred tax assets are recognised to the extent it is
probable that taxable profit will be available against
which the deductible temporary differences, and the
carry forward of unused tax losses can be utilised.
Deferred tax liabilities and assets are measured at the
tax rates that are expected to apply in the period in
which the liability is settled or the asset realised, based
on tax rates (and tax laws) that have been enacted or
substantively enacted by the end of the reporting
period. The carrying amount of deferred tax liabilities
and assets are reviewed at the end of each reporting
period and reduced to the extent that it is no longer
probable that sufficient taxable profits will be available
to allow the benefits of part or all of such deferred tax
assets to be utilised.

(c) Minimum alternate tax (MAT):

Minimum Alternate Tax (MAT) credit is recognised if
there is convincing evidence that the Company will pay
normal tax after the tax holiday period and the
resultant asset can be measured reliably. The excess tax
paid under MAT provisions, being over and above
regular tax liability, can be carried forward for a period
of the years from the year of recognition and is available
for set off against future tax liabilities computed under
regular tax provisions, to the extent MAT liability.

(d) Presentation of current and deferred tax:

Current and deferred tax are recognised as income or
an expense in the statement of profit and loss, except
when they relate to items that are recognised in other
comprehensive income, in which case, the current and
deferred tax income/expense are recognised in other
comprehensive income.

The Company offsets current tax assets and current tax
liabilities, where it has a legally enforceable right to set
off the recognised amounts and where it intends either
to settle on a net basis, or to realize the asset and settle
the liability simultaneously. In case of deferred tax
assets and deferred tax liabilities, the same are offset if
the Company has a legally enforceable right to set off
corresponding current tax assets against current tax
liabilities and the deferred tax assets and deferred tax
liabilities relate to income taxes levied by the same tax
authority on the Company.

1.20Borrowing costs:

Borrowing costs includes interest & exchange
differences arising from foreign currency borrowings
to the extent they are regarded as an adjustment to the
interest cost.

Borrowing costs directly attributable to the acquisition,
construction or production of an asset which
necessarily take a substantial period of time to get
ready for their intended use or sale are capitalized as
part of the cost of that asset. All other borrowing costs
are recognised as an expensed in the period in which
they occur.

1.21 Earnings per share:

Basic earnings per share is computed by dividing the
profit or loss attributable to equity shareholders of the
Company by the weighted average number of equity
shares outstanding during the period.

Diluted earnings per share is computed by dividing the
profit after tax by the weighted average number of
equity shares considered for deriving the basic
earnings per share and the weighted average number
of equity shares that could have been issued upon
conversion of all dilutive potential equity shares.

1.22Segment Reporting (Operating Segment):

An operating segment is a component of the Company
that engages in business activities from which it may
earn revenues and incur expenses, whose operating
results are regularly reviewed by the Chief Operating
Decision Maker (“CODM”) to make decisions for which
discrete financial information is available.

The Company identifies operating segments based
on the dominant source, nature of risks and return
and the internal organisation and management
structure and for which discrete financial information
is available. The CODM monitors the operating results
of the segments for the purpose of making decisions
about resource allocation and performance
assessment.

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.

The operating segment has been identified and
reported taking into account its internal financial
reporting, performance evaluation and
organizational structure of its operations. Operating
segment is reported in the manner evaluated by
board, considered as chief operating decision maker
under Ind AS 108 “Operating Segments”..

The Company has two segment of activity, namely
“Manufacturing of EPS (Expanded Polystyrene)
Packaging and Pre-engineered and Prefabricated
Building Solutions”, in accordance with the definition
of “Segment” covered under Indian Accounting
Standards (Ind AS) 108 on operating segments.

1.23 Cash flow statement:

Cash flows are reported using the indirect method,
whereby profit/(loss) before extraordinary items and
tax is adjusted for the effects of transactions of non¬
cash nature and any deferrals or accruals of past or
future cash receipts or payments. The cash flows from
operating, investing and financing activities of the
Company are segregated based on the available
information.

1.24 Events occurred after the balance sheet date:

Where events occurring after the balance sheet date
provide evidence of conditions that existed at the end
of the reporting period, the impact of such events is
adjusted within the Ind AS Financial Statements.
Otherwise, events after the balance sheet date of
material size or nature are only disclosed.

1.25 Recent Indian Accounting Standards (Ind AS)

There are no new or amended standards issued but
not effective as at the end of reporting period which
may have a significant impact on the financials
statements of the Company.

(I)Authorised Share Capital:

(a) Pursuant to the resolution passed by the Epack Prefab Technologies Limited at the Annual General Meeting of the
Company held on September 30, 2024, the Authorised Share Capital of the Company has been increased from Rupees
400.00 Lacs consisting of 40,00,000 Equity Shares of Rs. 10 each to Rs. 2400.00 Lacs consisting of Equity Share Capital of
Rs. 2200.00 Lacs divided into 2,20,00,000 Equity Shares of Rs. 10/- each and Preference Share Capital of Rs. 200.00 Lacs
divided into 20,00,000 ,0.0001% Compulsorily convertible Preference Shares of Rs. 10/- each

(b) Pursuant to the resolution passed by the Company in the Annual General Meeting held on September 30, 2024, the
Authorised Share Capital of the Company was altered / changed by sub-division / splitting of 2,20,00,000 Equity Shares
having face value of Rs. 10 each to 11,00,00,000 Equity Shares of Rs. 2 each and 20,00,000 0.0001% Compulsorily
convertible Preference Shares having face value of Rs. 10 each to 1,00,00,000 0.0001% Compulsorily convertible
Preference Shares of Rs. 2 each.

(ii) Split of Face Value of Shares:

(a) Pursuant to the resolution passed by the Company in the Annual General Meeting held on September 30, 2024, the face
value of the equity shares was split from Rs. 10 per equity share to Rs. 2 per Equity Share.

(b) Accordingly, the issued, subscribed, and paid-up equity share capital of the Company, being 38,75,400 Equity Shares of
Rs. 10 each was split into 1,93,77,000 Equity Shares of Rs. 2 each.

(iii) Issue of Bonus Shares:

(a) Pursuant to the resolution passed by the Board of the Company i.e. Epack Prefab Technologies Limited in the Meeting
held on September 30, 2024, issuance of 3 bonus shares of face value Rs. 2/- each for every 1 existing fully paid-up equity
share of face value Rs. 2/- was approved.

(b) Resolution for allotment of these shares was approved by the board of directors on September 30, 2024 and 5,81,31,000
bonus shares having face value of Rs. 2/- were issued resulting to 7,75,08,000 total number of equity shares of the
Company having face value Rs. 2/- each. The Company has issued bonus shares in accordance with Section 63 of the
Companies Act, 2013.

(c) The impact of issuance of bonus shares has been accordingly considered for the Computation of Earnings Per Share as
per the requirement of Ind AS 33 - Earning Per Share.

(iv) Issue of employees stock options (ESOP)

(a) Pursuant to resolution passed by the Nomination and Remuneration committee held on March 31, 2026, issuance of
1,63,294 equity shares of ^2/- each to eligible employees was approved

(b) During the year, the Company allotted 163,294 equity shares of ^2 each pursuant to exercise of Employee Stock Options
against receipt of ^244 lakhs from employees. The allotment & its requisite return was filed with the Registrar of
Companies effective from 31 March 2026 .The in-principle approval of the Stock Exchange, other corporate actions in
respect of the aforesaid allotment was received and made subsequent to 31 March 2026. Pending completion of such
requisite regulatory formalities, the amount received as above has been disclosed under Other Equity as Share
Application Money Pending Allotment along with Share Based Payment Reserve as per Ind As 102 totaling to Rs 292.36
lakhs

(B) Defined Benefit Plans

For defined benefits in the form of Gratuity the cost of providing benefits is determined using the Projected Unit Credit Method, with
actuarial valuations being carried out at each balance sheet date. Acturial Gains and Losses are recognized in the Statement of Profit and
Loss in the period which they occur.

The retirement benefit obligation recognized in the Balance Sheet represents the present value of the defined benefit obligation as
adjusted for unrecognized past service cost, as reduced by the fair value of scheme assets. Any asset resulting from this calculation is
limited to past service cost, plus the present value of available refunds and reductions in future contributions to the schemes.

Aforesaid post-employment benefit plans typically expose the Company to risks such as: actuarial
risk, investment risk, liquidity risk, market risk and legislative risk.

(I) Acturial Risk

It is the risk that benefits will cost more than expected. This can arise due to one of the following reasons:

Adverse Salary Growth Experience
Variability in mortality rates
Variability in withdrawal rates

(ii) Investment Risk

For funded plans that rely on insurers for managing the assets the value of assets certified by the insurer may not be the fair
value of instruments backing the liability. In such cases, the present value of the assets is independent of the future discount
rate. This can result in wide fluctuations in the net liability or the funded status if there are significant changes in the discount
rate during the inter-valuation period.

(iii) Liquidity Risk

Employees with high salaries and long durations or those higher in hierarchy, accumulate significant level of benefits. If some of
such employees resign/retire from the company there can be strain on the cashflows.

(iv) Market Risk

Market risk is a collective term for risks that are related to the changes and fluctuations of the financial markets.One actuarial
assumption that has a material effect is the discount rate.

(v) Legislative Risk

Legislative risk is the risk of increase in the plan liabilities or reduction in the plan assets due to change in the
legislation/regulation. The government may amend the Payment of Gratuity Act or Shop and Establishment Act thus requiring
the companies to pay higher benefits to the employees.

There are no changes in the benefit scheme since the last valuation. There are no special events such as benefit improvements
or curtailments or settlements during the inter-valuation period.

The following tables summarise the components of defined benefit expense recognised in the Statement of Profit and
Loss/OCI and the funded status and amounts recognised in the Balance Sheet for the respective plans:

44. Segment Reporting

A) Description of Segment and Principal Activities

An operating segment is a component of the Company that engages in business activities from which it may earn
revenues and incur expenses, whose operating results are regularly reviewed by the Chief Operating Decision Maker
("CODM") to make decisions for which discrete financial information is available. The Company identifies operating
segments based on the dominant source, nature of risks and return and the internal organisation and management
structure and for which discrete financial information is available. The CODM monitors the operating results of the
segments for the purpose of making decisions about resource allocation and performance assessment. The
Companyprepares its segment information in conformity with the accounting policies adopted for preparing and
presenting the financial statements of the Company as a whole.

The Executive Directors, Chief Executive Officer and Chief Financial Officer, Chief Operating officer are the Chief
Operating Decision Maker (CODM) and monitors the operating results of its business units separately for the purpose of
making decisions about resource allocation and performance assessment.

The operating segment has been identified and reported taking into account its internal financial reporting,
performance evaluation and organizational structure of its operations. Operating segment is reported in the manner
evaluated by board, considered as chief operating decision maker under Ind AS 108 "Operating Segments". The Company
has two key business segment of activity, namely "EPS (Expanded Polystyrene) Packaging" and "Pre-engineered and
Prefabricated Building Solutions", in accordance with the definition of "Segment" covered under Indian Accounting
Standards (Ind AS) 108 on operating segments.

1) EPS (Expanded Polystyrene) Packaging:

The Company is recognized as one of the largest manufacturer of EPS (Expanded Polystyrene) Packaging in India.
Its products serve a wide range of industries, including consumer electronics, appliances, and cold storage. The
EPS products are manufactured with a high degree of precision, ensuring quality and compliance with industry
standards.

2) Pre-engineered and Prefabricated Building Solutions:

The Company has grown into a significant player in the pre-engineered and prefabricated buildings (PEB)
segment, providing solutions for industrial, commercial, and residential sectors. The Company also specializes in
Prefabricated and pre-engineered building solutions, offering everything from light-gauge steel framing (LGSF)
to fully fabricated steel structures. Its solutions cater to industrial, commercial, and institutional projects, ensuring
High durability, cost efficiency, and reduced construction time.

The Company has assessed that trade receivables, cash and cash equivalents, bank balances other than cash and cash
equivalents, loans and advances other assets, borrowings, trade payables and other liabilities approximate their carrying
amounts largely due to the short-term maturities of these instruments The fair value of the financial assets and liabilities is
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.

B. Measurement of fair values

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the
principal (or most advantageous) market at the measurement date under current market conditions (i.e., an exit price),
regardless of whether that price is directly observable or estimated using a valuation technique.

Financial Assets and Financial Liabilities measured at fair value in the Balance sheet are grouped into three levels of a fair
value heirarchy. The three levels are defined based on the observability of significant inputs to the measurement, as
follows:

Level 1: Quoted prices in active markets for identical assets and liabilities.

Level 2: Inputs other than quoted prices included within 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 assets or liabilities that are not based on observable market data (unobservable inputs).

Financial Instruments measured at amortised cost:

The carrying amount of financial assets and liabilities measured at amortised cost in the financial statements are a
resonable approximation of their fair values since the Company does not anticipate that the carrying amounts will be
significantly different from the values that would eventually be received or settled.

NOTE 46 - FINANCIAL INSTRUMENTS - FAIR VALUES AND RISK MANAGEMENT

The Company''s principal financial liabilities comprises of trade and other payables. The Company''s financial assets
include trade and other receivables, and cash & cash equivalents that it derives 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. The Company''s senior management is supported by the Board of Directors that advises on
financial risks and the appropriate financial risk governance framework for the Company. This provides assurance to the
Company''s senior management that the Company''s financial risk activities are governed by appropriate policies and
procedure and that financial risks are identified, measured and managed in accordance with the Company''s policies and
risk objectives. The Board of Directors reviews and agrees policies for managing each risk, which are summarised as
below:

(a) Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet
its contractual obligations.

The carrying amounts of financial assets represent the maximum credit risk exposure. Credit risk assessment on various
components is described below:

I. Trade and other receivables

The exposure to credit risk on accounts receivables and amounts due from related parties is monitored on an ongoing
basis by the management and these are considered recoverable by the company''s management. Trade receivables were
outstanding from few customers and hence the Company has concentration of accounts receivables and consequent
risk to that extent.

The Company measures the expected credit loss of trade receivables based on historical trend, industry practices and the
business environment in which the Company operates. Loss rates are based on actual credit loss experience and past
trends.

In view of the management based on the company''s past history as well as forward looking estimates at the end of each
reporting period, receivables are good and fully recoverable.

The following year/period end trade receivables, though overdue, are expected to be realised in the normal course of
business and hence, are not considered impaired as at 31st March 2026 and 31st March 2025.

ii. Cash and Cash Equivalents, Bank Deposits and Investments

The Company maintains its cash and cash equivalents, bank deposits and investment with reputed banks, financial
institutions and corporates. The credit risk on these instruments is limited because the counterparties are banks and
high credit rated financial institutions and corporates assigned by credit rating agencies.

iii. Other Financial Assets

This consists of Security Deposits, Interest Accrued on Term Deposits given to lessors, Banks respectively. These carries
limited credit risk based on the financial position of parties and Company''s historical experience of dealing with these
parties.

(b) 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 of interest rate risk, currency risk and other price risk, such as equity price risk
and commodity risk. Financial instruments affected by market risk include loans and borrowings and deposits.

I. Interest Rate Risk

Interest rate 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 exposure of the Company''s fixed rate borrowings are not subject to interest rate
risk as defined in Ind AS 107 since neither the carrying amount nor the future cash flows will fluctuate because of a
change in market interest rates.

ii. Price Risk

Price risk is the risk that the value of the financial instrument will fluctuate as a result of changes in market prices and
related market variables for investments in debt oriented mutual funds and other financial instruments caused by factors
specific to an individual investments, its issuer and market. The Company''s exposure to price risk arises from diversified
investments in equity shares, G Sec Bonds, Mutual Funds and other equity instruments and classified in the balance sheet
at fair value.

iii. Commodity Risk

The Company is exposed to commodity price risk arising primarily from fluctuations in steel and other key raw material
prices used in the execution of its projects. As a significant portion of the Company''s contracts are entered into on a fixed-
price basis, increases in raw material prices may adversely impact project margins and profitability. The Company
monitors commodity price movements on an ongoing basis and seeks to manage the risk through procurement
planning, inventory management, strategic sourcing arrangements and periodic review of project pricing assumptions.

iv. Foreign Currency Risk

The Company has limited exposure to foreign currency risk arising primarily from import of capital equipment and related
advances/payables denominated in foreign currencies. Since the Company''s operations and revenue are substantially
denominated in Indian Rupees, management does not consider foreign currency risk to be significant. The Company
monitors foreign exchange movements and manages exposures through appropriate procurement and payment
planning.

(c) Liquidity Risk

Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities that are
settled by delivering cash or other financial assets. The Company follows a Conservative policy of ensuring sufficient
liquidity at all times through a strategy of profitable growth, efficient working capital management as well as prudent
capital expenditure. The Company has a cash credit facility with banks to support any temporary funding requirements.

The Company has established an appropriate liquidity risk management framework for the management of the
Company''s short-term, medium-term, and long-term funding and liquidity management requirements. The Company
manages liquidity risk by maintaining adequate reserves and by continuously monitoring cash flows, and by matching the
maturity profiles of financial assets and liabilities.

Maturities of Financial Liabilities

The tables below analyse the Company''s Undiscounted Financial Liabilities into relevant maturity groupings based on
their contractual maturities.

For the purpose of Company''s capital management, Capital includes equity attributable to the equity holders of the

Company and all other equity reserves. The primary objective of the Company''s capital management is to safeguard its
ability to continue as going concern and to ensure that it maintains an efficient capital structure and maximize

shareholder value. The Company determines the capital management requirement based on annual operating plans and
long term and other strategic investment plans. The Company monitors capital on the basis of the carrying amount of
equity less cash and cash equivalents as presented in the balance sheet. The funding requirements are predominately
met through equity, debt and revenue generated from operations.

The Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions
and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may
adjust the amount of dividend paid to shareholders, return capital to shareholders, issue new shares or sell non-core
assets to reduce the debt.

NOTE 48 - SUPPLIER FINANCE ARRANGEMENTS

The Company has entered into supplier finance arrangements through the M1xchange platform with participating
financial institutions to pay its MSME Dues. Under these arrangements, participating financial institutions settle
approved supplier invoices and the Company settles the financed amount on agreed due dates. These arrangements
generally provide payment terms of up to 120 days. The liabilities under these arrangements are presented within Trade
Payables other than micro enterprises and small enterprises.

Reasons for change in ratio more than 25%

Debt Equity Ratio

Primarily on account of reduction in debt and increase in share capital and other equity from IPO Funds.

Debt Service Coverage Ratio

Primarily on account of reduction in principal repayments made of debt as one of the Objects of IPO.

Net Capital Turnover Ratio

Primarily due to increase in Fixed Deposits.

Return on Equity ratio

Mainly on Account of Increase in Share Capital and Security Premium Reserves from IPO Funds.

NOTE 50- Significant accounting judgements, estimates and assumptions
Judgements

In the process of applying the Company''s accounting policies, management has made the following judgements, which
have the most significant effect on the amounts recognised in the standalone financial statements:

Determining the lease term of contracts with renewal and termination options - Company as lessee

The Company determines the lease term as the non-cancellable term of the lease and where the Company has sole rights
to terminate within the original lease term after expiry of lock in period., together with any periods covered by an option to
extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease, if it is
reasonably certain not to be exercised. Where the Lessor has also right to terminate the lease after lock in period, Lease
term is considered till lock in period. The Company has several lease contracts that include extension and termination
options. The Company applies judgement in evaluating whether it is reasonably certain whether or not to exercise the
option to renew or terminate the lease. That is, it considers all relevant factors that create an economic incentive for it to
exercise either the renewal or termination.

Revenue from contracts with customers

The Company applied the following judgements that significantly affect the determination of the amount and timing of
revenue from contracts with customers:

Estimation of Total Contract Revenue and Total Contract Cost

The Company recognises revenue from contracts with customers over time using the input method in accordance with
Ind AS 115, based on the proportion of contract costs incurred to date relative to the estimated total contract costs. The
determination of contract revenue and stage of completion involves significant management judgement and estimates,
including assessment of total expected project costs, variations and change orders, contractual claims, liquidated
damages, incentives, and other project-specific factors.

The estimation of total contract costs and revenues is reviewed periodically based on the progress of individual projects.
Changes in estimates arising from revisions to project scope, execution schedules, productivity levels, material costs,
subcontracting costs and other project-related factors are recognised prospectively in the financial statements. Actual
project outcomes may differ from the estimates made by management and such differences could impact the timing and
amount of revenue and profit recognised over the contract period.

Judgement is also applied to determine the transaction price of the contract. The transaction price shall include a fixed
amount of customer consideration and components of variable consideration (if any) which constitutes amounts payable
to customer, discounts and return from customers. The estimated amount of variable consideration is adjusted in the
transaction price only to the extent that it is highly probable that a significant reversal in the amount of cumulative
revenue recognised will not occur and is reassessed at the end of each reporting period.

Estimates and assumptions

Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based
on quoted prices in active markets, their fair value is measured using valuation techniques including the DCF model. The
inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of
judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit
risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.

Leases - Estimating the incremental borrowing rate

The Company cannot readily determine the interest rate implicit in the lease; therefore, it uses its incremental borrowing
rate (IBR) to measure lease liabilities. The IBR is the rate of interest that the Company would have to pay to borrow over a
similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the net investment in a
similar economic environment. The Company estimates the IBR using observable inputs (such as market interest rates)
when available.

Useful lives of Property, Plant & Equipment and Intangible Assets

The Company depreciates property, plant and equipment using Straight Line Value Method (SLM). The charge in respect
of periodic depreciation is derived based on an estimate of an asset''s expected useful life and the expected residual value
at the end of its life. 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 technology. The estimated useful life is reviewed at least annually.
Intangible assets are amortized over their respective individual estimated useful lives using the SLM method, from the
date they are available for use.

Impairment of Financial Assets

The impairment provisions for trade receivables is based on assumptions about risk of default and expected loss rates. The
Company uses judgements in making certain assumptions and selecting inputs to determine impairment of these trade
receivables, based on reasonable and supportable information including historic loss rates, present developments such as
liquidity issues and information about future economic conditions, to ensure foreseeable changes in the customer-
specific or macroeconomic environment are considered.

Employee Benefits - Defined benefit obligations

The cost of the defined benefit plans are based on actuarial valuation using the projected unit credit method. An actuarial
valuation involves making various assumptions that may differ from actual developments in the future. These include the
determination of the discount rate, future salary increases, attrition and mortality rates. Due to the complexities involved
in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions.
All assumptions are reviewed at each reporting date.

NOTE 52 Other Statutory Information:

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

(ii) The title deeds of all the immovable properties except certain properties mentioned in Note 2A & B are held in the name
of Company.

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

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

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

(vi) The Company has not advanced or loaned or invested funds to any 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 person 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 on behalf of the Ultimate Beneficiaries.

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

(a) Directly or indirectly lend or invest in other person 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 on behalf of the Ultimate Beneficiaries.

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

(ix) None of the Company entities have been declared wilful defaulter by any bank or financial institution or
government or any government authority.

(x) The Company has complied with the number of layers prescribed under Section 2(87) of the Companies Act, 2013
read with Companies (Restrictions on Number of Layers) Rules, 2017.

NOTE 53 Audit Trail:

The Company has been maintaining its books of accounts in the ERP Software which has feature of recording audit trail
(edit log) facility of each and every transaction, creating an edit log of each change made in books of account along with
the date when such changes were made and ensuring that the audit trail cannot be disabled, throughout the year as
required by proviso to sub rule (1) of rule 3 of The Companies (Accounts) Rules, 2014 known as the Companies (Accounts)
Amendment Rules, 2021. Further, no instance of audit trail feature being tampered with was noted in respect of the ERP
Software.

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 Company has assessed the impact of the Labour Codes based on
the provisions notified, draft rules, FAQs and available interpretations and has appropriately considered the impact,
wherever applicable, in the financial statements. Based on the assessment carried out, the Company does not expect any
material impact on its financial statements arising from the implementation of the Labour Codes. The Company
continues to monitor further regulatory developments and clarifications in this regard.

NOTE 55 EMPLOYEE STOCK OPTION SCHEME

The Company had formulated an employee stock option scheme namely the EPACK Prefab Employee Stock Option
Scheme 2024 pursuant to resolutions passed by the Board on December 18, 2024 and the Shareholders on December 18,
2024, with a maximum options pool of 16,91,464 options. The said options shall be vest in the four year period with a
maximum of 25% in each year from the grant date. As of March 31st 2026, 1,63,294 options are exercised by employees
pending allotment, same options are included in considering outstanding no. of equity shares while calculating Basic and
Diluted EPS.

NOTE 56 INITIAL PUBLIC OFFER (IPO)

During the Year Ended FY 2026, the company has completed its initial public offer ("IPO") of 2,47,05,882 equity Share of
face value of Rs 2 each at an issue price of 204 per share comprising fresh issue of 1,47,05,882 equity shares aggregating to
59.52% of Rs 30,000 lakhs and offer for sale of1,00,00,000 equity shares by selling aggregating to 40.48% of Rs 20,400 lakhs,
resulting in equity shares of the company being listed on NSE and BSE on October 1st, 2025. Accordingly, the paid up share
capital of the company increased from INR 1,550 lakhs to INR 2,009 lakhs, consisting of 10,04,51,997 equity shares of face
value of INR 2 per share.

Total IPO expenses of Company''s Portion incurred in relation to the IPO are approximately to Rs 1,601 lakhs, (excl. GST). As of
March 31st 2026, out of the Total IPO Proceeds received by the company, it has repaid term loans to the tune of INR 7,000
lakhs as one of the object of the IPO, Company has also Started Commercial Production of Mambatu Expansion Plant as
one of the IPO Object of Capital expenditure on 29th April 2026 and expecting to start the Ghiloth Plant (Rajasthan) during
FY 27. Company has temporarily parked unutilised IPO Money in Fixed Deposit with scheduled commercial Banks.

Company has Obtained Audit Committee & Board Approval for Utilisation of General Corporate Purpose Money of IPO
towards Working capital, Direct/Indirect Taxes Payment, General Expenses & IPO expenses over & above estimation.
Accordingly Co. has Utilised 111 Lakhs towards IPO expenses over & above estimation

NOTE 57 Events Occurring after the reporting period:

(i) There are no events that occurred after the Balance Sheet date that require adjustment or disclosure
in the Ind AS Financial Statements.

NOTE 58 The previous year''s figures have been regrouped/reclassified wherever considered necessary to make
them comparable with those of current period''s classification.