p Provisions, Contingent liabilities and Contingent
assets

Provisions are recognized when the Company
has a present legal or constructive obligation
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. Contingent liabilities are
disclosed unless the possibility of an outflow of
resources embodying economic benefits is remote.
Contingent assets are disclosed when an inflow of
economic benefits is probable; however, they are
not recognized in the financial statements until the
realization of income is virtually certain.

(ii) Rights, preferences and restrictions attached to shares

Equity Shares: The Company has one class of equity shares. Each shareholder is eligible for one vote per share
held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the
ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity
shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential
amounts, in proportion to their shareholding.

Foot Notes for Long term Borrowings

1. Term loan is secured by way of equitable mortgage of specified industrial cum commercial properties and
residential property (details as per Schedule of Collateral to the sanction letter), and Personal Guarantee of
all Directors, Promoters and Guarantors.

2. Term facility to be availed within 1 year from the date of sanction (06-Sep-2025); non-availment within this
period attracts additional fees of 0.50% and revised rate of interest.

3. Prepayment/foreclosure of the term loan attracts charges of up to 4% of the loan principal outstanding
(concession available for MSE borrowers as per BCSBI guidelines).

4. Rs.300.00 lacs WC Term Loan is only facility with tenor > 12 months and is accordingly classified as long-term
borrowing; current maturities of this term loan falling due within 12 months from the balance sheet date
should additionally be disclosed/regrouped under ''Current maturities of long-term debt as per Schedule
III.

Basis of Valuation of Investment

During the year the Company acquired 100% of the equity share capital of Sunlite Aluminium Private Limited
(""SAPL""), which became a wholly owned subsidiary of the Company with effect from 6th February 2026. The
total purchase consideration of ?5,000.00 lakhs was discharged as to ?650.00 lakhs in cash and as to ?4,350
lakhs by the allotment of 21,01,448 equity shares of ?10 each at a price of ?207.00 per share (including securities
premium of ?197.00 per share) on a preferential basis pursuant to the special resolution passed by the members
at the Extra-Ordinary General Meeting held on 06th December, 2025 and Section 62(1)(c) of the Companies Act,
2013. The price of the equity shares issued and the value of the consideration received were determined on the
basis of the valuation report dated 20th November, 2025 issued by Mohit Jayeshbhai Solanki, Registered Valuer
(IBBI Registration No. IBBI/RV/06/2022/14822 ).

37 Security of Current Assets Against Borrowings

1. The Charge of loan amounting to Rs 3,24,00,000 is created on 24th January, 2023 and the same has been
registered by the company on the said date. The charge has been modified on 22nd November, 2023.

2. The Charge of loan amounting to Rs 53,38,00,000 is created on 24th January, 2023 and the same has been
registered by the company on the said date. The charge has been modified on 16th September, 2025.

Reason for variance:-

(a) Debt-Equity Ratio decreased as equity rose significantly from higher security premium and retained earnings,
outweighing the increase in borrowings.

(b) Debt Service Coverage Ratio increased due to a significant rise in EBITDA, resulting in higher earnings available
for debt servicing. The increase in debt obligations was comparatively lower, leading to improved debt servicing
capacity.

(c) Trade receivables turnover ratio has increased due to higher sales as compare to previous year.

(d) Trade Payables Turnover Ratio has decreased because Credit purchases and average trade payables both
increased, but average trade payables increased at a higher rate than purchases, resulting in a lower turnover
ratio.

(e) Net profit ratio increased as company is able to effectively control its costs and there is increase in earnings due

to increase in revenue.

(f) Return on Investment has decreased compared to the previous year. During the previous year, the Company had
temporarily earn higher interest income. Since the ROI calculation considers the closing investment balance,
such temporary deployment of funds was not reflected in the investment base, leading to a comparatively higher
ROI in the previous year. As no similar interest income was earned during the current year, the ROI has decreased
significantly which is in-line with FDR rate.

Nature of CSR activities

Promoting health care, including preventive health care and medical assistance.

40 Provisions, Contingent liabilities and Contingent assets

Contingent Liabilities as defined in Accounting Standard (AS) - 29 "Provisions, Contingent Liabilities dealt with as
a contingent liability. Provisions involving substantial degree of estimation in measurement are recognized when
there is a present obligation as a result of past events and it is probable that there will be an outflow of resources.
Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized
nor disclosed in the financial statements and Contingent Assets" are disclosed by way of notes to the accounts.

42. Segment Reporting (AS 17)

The Company''s primary business activity falls within a single business segment, namely

""Manufacturing and trading in non-ferrous metal related products"". Furthermore,

the Company operates primarily within a single geographical segment (India).
Accordingly, there are no separate reportable segments under Accounting Standard (AS) 17 ""Segment
Reporting"", and the segment revenue, segment results, and segment assets/liabilities are reflective of the
financial statements as a whole."

43. Preferential Allotment

A. Cash Preferential Allotment

During the financial year ended March 31, 2026, the Company raised ?1,706.51 Lakhs through a preferential
allotment of 8,24,400 equity shares at a price of ?207 per share (Face Value: ?10 per share), pursuant to the
applicable provisions of the Companies Act, 2013 and SEBI (Issue of Capital and Disclosure Requirements)
Regulations, 2018.

Contingent liabilities of the company as on March 31, 2026 are as follows:

The GST department has issued various Show Cause Notices (SCN) from FY 2017-18 to FY 2022-23. The total
outstanding demand is ?1843.22 Lacs as on balance sheet date. Based on the decisions of the Appellate authorities
and the interpretations of other relevant provisions of the GST Act the Company has been legally advised that the
demand raised is likely to be either deleted or substantially reduced and accordingly no provision is considered
necessary. The company has filed appeal against those notices and no order has been passed by appropriate
authorities against those appeals.

The Income-tax authorities (''the Department'') had conducted search activity during the month of February 2025
at the premises of the Company and at the residences of the management and certain employees of the Company.
The Company had extended full cooperation to the Income-tax officials during the search and provided the required
details, clarifications and documents. As at the date of signing of these financial statements, the Company has not
received any order, notice or other written communication from the Department in relation to the outcome of the
search. Accordingly, the consequential impact, if any, on the financial statements cannot presently be ascertained.
The Management, after considering all available records and facts known to it, is of the view that there is no
material adverse impact on the financial position of the Company and no material adjustments are required to
these financial statements for the year ended 31 March 2026 in this regard."

41. Proposed Dividend

The Board of Directors at its meeting held on 27 April 2026 recommended a final dividend of ?1 per equity share
(10%) for the financial year ended 31 March 2026, subject to approval of the shareholders at the ensuing Annual
General Meeting.

The Company confirms that the entire proceeds have been fully utilised in accordance with the objects stated in
the Offer Document. There has been no deviation or variation in the utilisation of proceeds as compared to the
objects disclosed therein.

B. Non-Cash Preferential Allotment — Share Swap for Acquisition

In addition to the cash preferential allotment mentioned above, the Company has issued 21,01,448 equity
shares of ?10 each at a price of ?207 per share as consideration other than cash, towards the acquisition of the
remaining 87% stake in Sunlite Aluminium Private Limited.

The aggregate value of shares issued under this non-cash swap arrangement amounts to ?4,350 Lakhs (21,01,448
shares x ?207 per share).

This non-cash share swap, together with the cash consideration of ?650 Lakhs paid from the preferential
allotment proceeds, constitutes the total purchase consideration for the acquisition of Sunlite Aluminium Private
Limited, structured as a combination of cash and share swap arrangement.

44 Other Statutory Disclosures as per the Companies Act, 2013

- The title deeds of all immovable properties disclosed in the financial statements are held in the name of the
Company.

- The Company has not been declared a wilful defaulter by any bank, financial institution or other lender.

- Capital Work In Progress (CWIP) is Nil as at the reporting date; accordingly, the CWIP ageing disclosure is
not applicable.

- The Company has no transactions with companies struck off under Section 248 of the Companies Act, 2013

- The Company has not carried out any revaluation of Property, Plant and Equipment in any of the period

reported in this Financial Statements hence reporting is not applicable.

- The company does not hold any benami property as defined under the Benami Transactions (Prohibition)
Act, 1988 (45 of 1988) and the rules made thereunder. No proceeding has been initiated or pending against
the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of
1988) and the rules made thereunder.

- Company has borrowings taken from banks and financial institutions, monthly returns or statements of
current assets filed by the Company with banks or financial institutions are in agreement with the books of
accounts except reported in CARO report and summary of reconciliations are provided, wherever required.

- There are no charges or satisfaction of charges pending registration with the Registrar of Companies beyond
the statutory period.

- The company has lien on Fixed Deposits against Bank Guarantee issued, appropriate charge has been
created with Registrar of Companies.

- The Company does not have any such 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).

- The Company has not granted any loans or advances in the nature of loans to promoters, directors, KMPs or
related parties which are repayable on demand or without specifying any terms or period of repayment.

- The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including

foreign entities (Intermediaries) with the understanding that the Intermediary shall:

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

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

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

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

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

- During FY 2025-26, the company has raised amounts from issue of securities by way of prefrential allotment.
Also during FY 2024-25, the company has raised amounts from issue of securities by way of Initial Public
Offering.

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

- During the year, the Company acquired Sunlite Aluminium Private Limited as its wholly owned subsidiary. As
at 31 March 2026, the Company has one subsidiary, which does not have any step-down subsidiary of its own.
In terms of the Explanation to Rule 2(1) of the Companies (Restriction on Number of Layers) Rules, 2017, a layer
consisting of a wholly owned subsidiary is excluded while computing the number of layers under clause (87) of
Section 2 of the Companies Act, 2013. Accordingly, the Company is in compliance with the provisions relating to
restriction on the number of layers of subsidiaries.

45 Other Disclosures

During the year, Sunlite Recycling Industries Limited acquired 100% of the equity shares of the Sunlite Aluminium
Private Limited. Consequently, with effect from 06th February 2026, Sunlite Aluminium Private Limited became
a wholly-owned subsidiary of Sunlite Recycling Industries Limited.

The aforesaid change in ownership has resulted in a change in the Company''s holding structure. The transaction
does not have any impact on the recognition and measurement of assets, liabilities, income, and expenses in
these standalone financial statements for the year ended 31st March 2026.

The Statement containing the salient features of the financial statements of the subsidiary in Form AOC-1, as
prescribed under Section 129(3) of the Companies Act, 2013 read with Rule 5 of the Companies (Accounts) Rules,
2014, is annexed to and forms an integral part of these financial statements.

46 Subsequent Events

All the events occurring after the Balance Sheet date up to the date of the approval of the financial statement
of the Company by the board of directors on April 27, 2026 have been considered, disclosed and adjusted,
wherever applicable, as per the requirement of Accounting Standards.

47 Regrouping

The previous year''s figures have been reworked, regrouped, and reclassified wherever necessary. Amounts and
other disclosures including ratio for the preceding year are included as an integral part of the current annual
financial statements and are to be read in relation to the amounts and other disclosures relating to the current
financial year.

m Provisions, Contingent liabilities and Contingent
assets

Provision Involving Substantial Degree of estimation
in measurement are recognised when there is
a present obligation as a result of past events
and it is probable that there will be an outflow of
resources.

See accompanying notes to the financial statements

As per our report of even date

^{For Gopal Shah} & ^Co For and on behalf of the Board of Directors of

^{Chartered Accountants} Sunlite Recycling Industries Ltd

FRN. 103301W

CA Gopal Shah, Partner Priyanka Muraka Nitinkumar Heda Prahladrai Heda

Membership No. 036807 Company Secretary Managing Director Chairman, WTD

UDIN: 25036807BMOISJ5105 M. No. A75466 DIN:- 0383855 DIN:-09696242

Place: Ahmedabad Manishkumar Heda Place: Nadiad

Date: May 21, 2025 Chief Financial Officer Date: May 21, 2025

The Ministry of Micro, Small and Medium Enterprises has issued an office memorandum dated 26 August 2008
which recommends that the Micro and Small Enterprises should mention in their correspondence with its
customers the Entrepreneurs Memorandum Number as allocated after filing of the Memorandum in accordance
with the ''Micro, Small and Medium Enterprises Development Act, 2006 (''the Act''). Accordingly the disclosure
in respect of the amounts payable to such enterprises as at 31 March 2025 has been made in the financial
statements based on information received and available with the Company. Further in view of the Management,
the impact of interest, if any, that may be payable in accordance with the provisions of the Act is not expected to
be material. The Company has not received any claim for interest from any supplier as at the balance sheet date.

Reason for variance:-

1 (a) There is change in Current Ratio as inventories

has increased drastically as compared to previous
year. Further current liabilities has decreased due to

3 (c)Debt Service Coverage Ratio has increased
because management has repaid major loans
through proceeds of IPO. Further company has
shown good growth in the earnings as compared
to previous year . This has lead to increase in debt
service coverage ratio during the year as compared
to previous year.

4 (d) Return on Equity has reduced because the
company has issued shares through IPO which
resulted in the increase in share capital of the
company.

5 (e) Inventory turnover ratio has increased as the
total revenue of the company is increased.

6 (f) Trade receivables turnover ratio is decreased
as the total amount due from debtors has been
increased as compared to last year.

7 (g) Trade payable turnover ratio has increased due
to increase in Purchase as compare to previous
year.

8 (h) Net capital turnover ratio decreased due to
increase in net working capital of the company as
compared to previous year as there is increase in
debtors and inventories.

9 (i) Net profit ratio increased as company is able to
effectively control its costs and there is increase in
earnings.

10 (j) Return on capital employed increased due
to increase in earnings and decrease in capital
employed due to repayment of debt of the
company.

11 (k) Return on investment has increased since
there were higher investments during the year
as compared to previous year. Apart from that
company has made a Fixed Deposits from the funds
raised through IPO upto the date of utilisation of
those funds. This has lead to higher interest income
in current year.

36 Provisions, Contingent liabilities and Contingent
assets

Contingent Liabilities as defined in Accounting
Standard (AS) - 29 "Provisions, Contingent Liabilities
dealt with as a contingent liability. Provisions
involving substantial degree of estimation in
measurement are recognized when there is a
present obligation as a result of past events and it is
probable that there will be an outflow of resources.
Contingent liabilities are not recognized but are
disclosed in the notes. Contingent assets are neither
recognized nor disclosed in the financial statements
and Contingent Assets" are disclosed by way of
notes to the accounts.

Contingent liabilities of the company as on
March 31, 2025 are as follows:

The GST department has issued various Show
Cause Notices (SCN) from FY 2017-18 to FY 2022¬
23. The total outstanding demand is ?4695.85
Lacs as on balance sheet date. Based on the
decisions of the Appellate authorities and the
interpretations of other relevant provisions of the
GST Act the Company has been legally advised that
the demand raised is likely to be either deleted or
substantially reduced and accordingly no provision
is considered necessary. The company has filed
appeal against those notices and no order has been
passed by appropriate authorities against those
appeals.

37 Other Statutory Disclosures as per the Companies
Act, 2013

- The Company has not carried out any revaluation

of Property, Plant and Equipment in any of the
period reported in this Financial Statements hence
reporting is not applicable.

- The company does not hold any benami property

as defined under the Benami Transactions
(Prohibition) Act, 1988 (45 of 1988) and the rules
made thereunder. No proceeding has been initiated
or pending against the company for holding any
benami property under the Benami Transactions
(Prohibition) Act, 1988 (45 of 1988) and the rules
made thereunder.

- Company has borrowings taken from banks and
financial institutions, monthly returns or statements
of current assets filed by the Company with banks
or financial institutions are in agreement with the
books of accounts except reported in CARO report
and summary of reconciliations are provided,
wherever required.

- The company has lien on Fixed Deposits against
Bank Guarantee issued, appropriate charge has
been created with Registrar of Companies.

- The Company does not have any such 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).

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

(a) directly or indirectly lend or invest in other persons
or entities identified in any manner whatsoever by or

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

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

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

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

- During FY 2024-25, the company has not raised
amounts from issue of securities by way of rights
allotment However during FY 2023-24, the company
has raised amounts from issue of securities by way
of rights allotment.

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

- The Company is in compliance with the number

of layers prescribed under clause (87) of section
2 of the Companies Act read with the Companies
(Restriction on number of Layers) Rules, 2017.

38 Other Disclosures

The Income-Tax authorities (''the department'')
had conducted search activity during the month
of February 2025 at the premises of company and
residences of the management and few employees
of the Company. The Company extended full
cooperation to the Income-tax officials during the
search and provided required details, clarifications,
and documents. As on the date of issuance of these
standalone financial statements, the Company has
not received any written communication from the
department regarding the outcome of the search,
therefore, the consequent impact on the standalone
financial statements, if any, is not ascertainable. The
Management, after considering all available records
and facts known to it, is of the view that there is no
material adverse impact on the financial position
of the Company and no material adjustments are
required to these standalone financial statements
for the half-year and year ended 31 March 2025 in
this regard.

As per our report of even date

^{For Gopa}l ^Shah & ^Co For and on behalf of the Board of Directors of

^{Chartered Accountants} Sunlite Recycling Industries Ltd

FRN. 103301W

CA Gopal Shah, Partner Priyanka Muraka Nitinkumar Heda Prahladrai Heda

Membership No. 036807 Company Secretary Managing Director Chairman, WTD

UDIN: 25036807BMOISJ5105 M. No. A75466 DIN:- 0383855 DIN:-09696242

Place: Ahmedabad Manishkumar Heda Place: Nadiad

Date: May 21, 2025 Chief Financial Officer Date: May 21, 2025