Jindal Supreme India Ltd Management Discussions

Our fiscal year ends on March 31 of each year, and references to a particular fiscal period are to the 12 months ended March 31 of that year. All references to a year are to that Fiscal Year, unless otherwise noted.

Some of the information contained in this section, including information with respect to our strategies, contain forward-looking statements that involve risks and uncertainties. You should read the section titled "Forward Looking Statements" beginning on page 22 for a discussion of the risks and uncertainties related to those statements and also the section titled "Risk Factors" and "Our Business" beginning on pages 34 and 162, respectively, for a discussion of certain factors that may affect our business, results of operations and financial condition. The actual results of the Company may differ materially from those expressed in or implied by these forward-looking statements.

Unless otherwise stated, references to "the Company", "our Company", "we", "us", and "our" are to Jindal Supreme (India) Limited.

Our company is engaged in the manufacturing and supply of a different range of steel pipes, tubes and catering to the requirements of multiple infrastructure and industrial applications. Our product portfolio includes Mild Steel (MS) black pipes, tubes, galvanized pipes, metal beam crash barriers, and galvanized iron (GI) tubular poles. These products are manufactured in various dimensions, with range covering sizes from 0.5 inch to 10 inch, thus meeting a wide range of customer needs. Each of our products is manufactured as per the Indian Standards, ensuring consistent quality, durability, and compliance with both domestic and international benchmarks. Our products find application in various

industry segments like, Water Supply and Plumbing, Infrastructure & Construction, Road & Highways, Bridges, Oil & Gas, Chemicals, Agriculture, rural electrification and others.

Our Company was established by Late Madan Lal Jindal, the grandfather of Abhishek Jindal, and commenced the operations in 1974. Late Madan Lal Jindal played a pivotal role in the growth and overall performance of our Company over the years. He was succeeded by his son, Sh. Janak Raj Jindal, who further strengthened the Companys operations and continued the legacy of business. He was succeeded by his son and our promoter Abhishek Jindal who has been associated with our Company since 2007 having over 18 years of experience in the MS Black and Galvanized Pipes/Tubes manufacturing industry and has played a key role in developing our product portfolio and diversification.

In Fiscal 2025, we commenced the manufacturing of metal beam crash barriers with W-beam and Thrie-beam crash barriers, which are primarily utilized for road safety and highway infrastructure projects. Following this, in Fiscal 2026, we further diversified into the production of GI tubular poles, which are commonly used for street lighting, electrification projects, and other public utility infrastructure. Over the years, we have expanded our product offerings to tap into emerging opportunities in infrastructure development projects.

• EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) is calculated as sum of Profit Before Tax, Finance Cost & Depreciation and Amortization excluding Other Income
• EBIT (Earnings Before Interest & Tax) is calculated as EBITDA less Depreciation
• EBT (Earning Before Tax) is calculated as EBIT less Finance Cost, add other income
• PAT (Profit After Tax) is calculated as EBT less Tax
• EBITDA Margin is calculated as EBITDA divided by Revenue from operation
• EBIT Margin is calculated as EBIT divided by Total Income
• EBT Margin is calculated as EBT divided by Total Income
• PAT Margin is calculated as PAT divided by Total Income
• EPS is calculated as PAT divided by weighted number of outstanding equity shares
• Debt / Equity is calculated as total debt divided by net worth
• RoE (Return on Equity) is calculated as PAT divided by Net worth
• RoCE (Return on Capital Employed) is calculated as EBIT divided by Capital Employed

The financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 as amended, Companies Accounting Standard (Amendment Rules 2016), read with section 133 of the Companies Act, 2013. Companys standalone financial statements are presented in Indian Rupees (? ) which is also its functional currency, and all values are rounded to the nearest lakhs (? 00,000) except when otherwise indicated.

The Companys functional and presentation currency is Indian Rupees (INR). Unless otherwise stated, figures are rounded to the nearest lakh with two decimals in line with Schedule III to the Companies Act, 2013.

The financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules 2015 read with Section 133 of Companies Act, 2013 as amended from time to time. The financial statements have been prepared on an accrual basis and under the historical cost convention, except for the certain financial instruments which are measured at fair value, presentation and classification follow Schedule III (Division II). 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 regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability the Company takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/ or disclosure purposes in these financial statements is determined on such basis except for measurements that have some similarities to fair value but are not fair value such as net realizable value in Ind AS 2.

• Significant Accounting Judgments Estimates and Assumptions:

The preparation of the Companys financial statements in conformity with Ind AS requires the management to make judgments estimates and assumptions that affect the reported amounts of revenues expenses assets and liabilities and the accompanying disclosures and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods. The management believes that the estimates used in preparation of financial statements are prudent and reasonable. Estimates and underlying assumptions are reviewed at each reporting date. Revisions to accounting estimates are recognized in the period in which the estimate is revised, and future period is affected.

• (A) Current/ Non-Current Classification:

The Company presents assets and liabilities in the balance sheet based on current/ non-current classification. An asset is treated as current when it is:

• Expected to be realized or intended to be sold or consumed in normal operating cycle.
• Held primarily for the purpose of trading.
• Expected to be realized within twelve months after the reporting period or
• There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period The Company classifies all other liabilities as non-current.

• Property, Plant, and Equipment

Freehold land is measured at cost and not depreciated. All other items of property plant and equipment are stated at cost less accumulated depreciation and impairment loss if any. Cost includes cost of acquisition installation or construction other direct expenses incurred to bring the assets to its working condition and finance costs incurred up to the date the asset is ready for its intended use and excludes GST eligible for credit / setoff.

Such cost includes the cost of replacing part of the plant and equipment costs of dismantling and removing the item and restoring the site on which it is located and borrowing costs for long-term construction projects if the recognition criteria are met. When significant parts of plant and equipment are required to be replaced at intervals the same were depreciated separately based on their specific useful lives.

All other repair and maintenance costs are recognized in the statement of profit or loss as incurred.

The Company records a provision for dismantling cost towards Plant and Machinery wherever applicable. Dismantling costs are provided at the present value of future expenditure using the current pre-tax rate expected to be incurred to fulfil dismantling obligation and are recognized as part of the cost of the underlined asset. Any change in the present value of expenditure other than unwinding of discount on the provision is reflected as adjustment to the provision and the corresponding asset. The change in the provision due to the unwinding of discount is recognized in the statement of profit and loss.

Capital work-in-progress in respect of assets which are not ready for their intended use are carried at cost comprising of direct costs related incidental expenses and attributable interest. Depreciation is not recorded on capital work-in-progress until construction and installation is complete and the asset is ready for its intended use. The company does not have any Capital work-in-progress as on the reporting date.

Advances paid towards the acquisition of fixed assets outstanding (if any) at each balance sheet date are disclosed as "Capital Advances" under other non-current assets.

Property plant and equipment are eliminated from financial statements either on disposal or when retired from active use. Losses arising in the case of the retirement of property plant and equipment and gains or losses arising from disposal of property plant and equipment are recognized in the statement of profit and loss in the year of occurrence.

Depreciable amount for assets is the cost of an asset or other amount substituted for cost less its estimated residual value. Property Plant and Equipment is provided on straight-line method over the useful life of the assets as specified in Schedule II to the Companies Act 2013. Any Capital Expenditure costing ? 5000 or less are treated as a Revenue Expenditure and recognized in the statement of profit and loss in the year in which it is incurred.

• Intangible Assets

Intangible assets are recognized when it is probable that the future economic benefits that are attributable to the assets will flow to the Company and the cost of the assets can be measured reliably.

Intangible assets are stated at cost or acquisition less accumulated amortization and impairment loss if any.

Intangible assets including software is amortized over their estimated useful life on straight line basis from the date they are available for intended use subject to impairment test.

The estimated useful life and the amortization period of the intangible assets are reviewed at the end of each financial year, and the amortization period is revised to reflect the changed pattern if any.

Development expenditures on an individual product/ project are recognized as an intangible asset when the Company can demonstrate the technical feasibility of completing the intangible asset so that the asset will be available for use or sale its intention to complete and use or sell the asset its ability to use or sell the asset how the asset will generate future economic benefits the availability of resources to complete the asset and the availability to measure reliably the expenditure during development.

The company does not have any intangible assets as on the reporting date.

Subsequent costs incurred for replacement of a major component of an asset are included in the assets carrying cost or recognized as a separate asset as appropriate. The carrying values of the replaced components are recognized to statement of Profit and Loss when replaced.

De-recognition: An item of property plant and equipment and any significant part initially recognized is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the income statement when the asset is derecognized.

Gains or losses arising from de-recognition of an intangible assets are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when the asset is derecognized.

• Investment Property

Properties that are held for long-term rental yields and/ or for capital appreciation are classified as investment properties. Investment properties are stated at cost of acquisition or construction less accumulated depreciation and impairment if any. Depreciation is recognized using the straight-line method so as to amortize the cost of investment properties over their useful lives as specified in Schedule II of the Companies Act 2013. Transfers to or from investment properties are made at the carrying amount when and only when there is a change in use. An item of investment property is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of asset. Any gain or loss arising on the disposal or retirement of an item of investment property is determined as the difference between the sales proceeds and the carrying amount of the property and is recognized in the Statement of Profit and Loss. The company does not have any investment property as on the reporting date.

• Impairment of Non-Financial Assets

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

Assessment for impairment is done at each Balance Sheet date as to whether there is any indication that an asset (tangible and intangible) may be impaired. For the purpose of assessing impairment, the smallest identifiable group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows from other assets or groups of assets is considered as a cash generating unit. If any such indication exists an estimate of the recoverable amount of the individual asset/cash generating unit is made.

An impairment loss is reversed in the statement of profit and loss if there has been a change in the estimates used to determine the recoverable amount. The carrying amount of the asset is increased to its revised recoverable amount provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortization or depreciation) had no impairment loss been recognized for the asset in prior years.

• Revenue Recognition

Revenue is recognized in accordance with Ind AS 115 by identifying the contract, performance obligations, transaction price (including variable consideration subject to the constraint), and allocation to performance obligations, and recognizing revenue when (or as) control transfers.

The control is transferred upon shipment of goods to the customer or when the goods is made available to the customer provided transfer of title to the customer occurs and the Company has not retained any significant risks of ownership or future obligations with respect to the goods shipped.

Revenue from rendering of services is recognized over the time by measuring the progress towards complete satisfaction of performance obligations at the reporting period. While in case of Job work services, the same is recognized after the completion of service.

Revenue towards satisfaction of a performance obligation is measured at the amount of transaction price (net of variable consideration) allocated to that performance obligation. The transaction price of goods sold, and services rendered is net of variable consideration on account of various discounts offered by the company as part of the contract. Variable considerations are determined based on the most likely amount. Consideration is due upon satisfaction of performance obligations, and a receivable is recognized when it becomes unconditional.

Payment terms agreed with a customer are as per business practice and there is no financing component involved in the transaction price.

Interest income: Interest Income from financial asset is recognized when it is probable that the economic benefits flow to the Company and the amount of income can be measured reliably. Interest income is accrued on a time basis by reference to the principal outstanding and at the effective interest applicable which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the assets net carrying amount on initial recognition.

Other Income: Revenue in respect of other income is recognized when a reasonable certainty as to its realization exists.

• Investments:

Investments are classified into current and non-current investments. Investments that are readily realizable and intended to be held for not more than a year from the date of acquisition are classified as current investments. All other investments are classified as non-current investments. However, that part of long-term investments which are expected to be realized within twelve months from Balance Sheet date is also presented under "Current Investment" under "Current portion of long-term investments" in consonance with the current/ noncurrent classification of Schedule III of the Act.

• Inventories:

Inventories include raw material, work in progress, finished goods, scrap and stores, spares and consumables. Raw Materials are valued at cost on FIFO basis. Semi-finished are valued at estimated cost basis. Finished goods are valued at Cost or Net Realizable Value whichever is less. Stores and Consumables are valued at Cost.

The cost of inventories is computed to include all cost of purchases cost of conversion standard overheads and other related cost incurred in bringing the inventories to their present condition.

Net realizable value is the estimated selling price in the ordinary course of business less the estimated cost of completion and the estimated costs necessary to make the sale.

• Cash and Cash Equivalents:

Cash and cash equivalents comprise cash on hand, balances with banks, and short-term deposits with original maturities of three months or less that are readily convertible to known amounts of cash and subject to insignificant risk of changes in value. Bank deposits with original maturities of more than three months are presented as other bank balances.

• Employee Benefits

Short Term Employee Benefits: All employee benefits payable wholly within twelve months after the end of the annual reporting period in which the employees render the related services, are classified as short term employee benefits. Benefits such as salaries, wages, short-term compensated absences, performance incentives etc., and the expected cost of bonus, ex-gratia are recognized during the period in which the employee renders

related service. Short term employee benefits are recognized on an undiscounted basis whereas long term employee benefits are recognized on a discounted basis.

• Defined Contribution Plan: Payments to defined contribution retirement benefit plans are recognized as an expense when employees have rendered the service entitling them to the contributions. Contribution as per Employees Provident Funds and Miscellaneous Provisions Act 1952 towards Provident Fund and Family Pension Fund are provided for and payments in respect thereof are made to the relevant authorities on actual basis.

• Defined Benefit Plan: The cost of providing benefits under the defined benefit plan is determined using the projected unit credit method with the actuarial valuations being carried out at the end of each annual reporting period.

Gratuity: In accordance with applicable Indian Laws the Company provides gratuity a defined benefit retirement plan (the Gratuity Plan) covering eligible employees. The gratuity plan provides a lump sum payment to vested employees at retirement or termination of employment an amount based on the respective employees last drawn salary and the years of employment with the Company. Liability with regard to Gratuity Plan is accrued based on actuarial valuation at the Balance Sheet date.

Past service costs are recognized in profit or loss on the earlier of:

• The date of the plan amendment or curtailment and
• The date that the Company recognizes related restructuring costs.
• Net interest is calculated by applying the discount rate to the net defined benefit liability or asset. The Company recognizes the following changes in the net defined benefit obligation as an expense in the statement of profit and loss:
• Service costs comprising current service costs past service costs gains and losses on curtailments and non- routine Settlements; and Net interest expense or income.

Termination Benefits: In case of employees early retirement/ termination/ resignation/ withdrawal, the normal retirement benefit will be paid based on the service up to the date of exit.

• Borrowings Cost

Borrowing costs which are directly attributable to the acquisition/construction or production of a qualifying asset which are the assets that necessarily takes substantial period of time to get ready for intended use or sale till the time such assets are ready for intended use are capitalized as part of the costs of such assets. Other Borrowing costs are recognized as expenses in the year in which they are incurred. Borrowing cost includes interest amortization of ancillary costs incurred in connection with the arrangement of borrowings and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost if any.

• Earnings Per Share

The basic earnings per share (‘EPS) is computed by dividing the net profit after tax for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes) by weighted average number of equities shares outstanding during the year. For the purpose of calculating diluted earnings per share the net profit after tax for the period attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares. The dilutive potential equity shares are deemed to be converted as of the beginning of the year unless they have been issued at a later date. Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing ordinary operations. Potential dilutive equity shares are deemed to be converted as at the beginning of the period unless they have been issued at a later date. The dilutive potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value (i.e. average market value of the outstanding shares). Dilutive potential equity shares are determined independently for each period

presented. The number of equity shares and potentially dilutive equity shares are adjusted for share splits / reverse share splits and bonus shares as appropriate.

• Segment Reporting

Segments are identified in line with Indian Accounting Standards (Ind AS) 108 "Operating Segments", taking into consideration the internal organization and management structure. Operating Segments are components of the Group whose operating results are regularly reviewed by the Chief Operating Decision Maker (CODM) to make decisions about resources to be allocated to the segment and assesses its performance and for which discreet information is available. The company has identified its Managing Director as the Chief Operating Decision Maker (CODM).

The Company has considered only one business segment as the primary segments for disclosure i.e., Manufacturing and Selling of Steel Tubes. Segment information can be viewed in Note No. 25.4.

• Provisions and Contingencies:

The Company creates a provision when there exists a present obligation as a result of a past event that probably requires an outflow of resources, and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may but probably will not require an outflow of resources. When there is a possible obligation or a present obligation in respect of which likelihood of outflow of resources is remote no provision or disclosure is made. The expenses relating to a provision is presented in the Statement of Profit & Loss net of any reimbursement.

• Taxation

Current Income Tax: Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted at the reporting date in the countries where the Company operates and generates taxable income.

Deferred Tax: Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date. Deferred tax liabilities are recognized for all taxable temporary differences, except:

• When the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss,
• In respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are reassessed at each reporting date and are recognized to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered. Deferred tax relating to items recognized outside profit or loss is recognized outside profit or loss (either in other comprehensive income or in equity). Deferred tax items are recognized in correlation to the underlying transaction either in OCI or directly in equity. Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

• Financial Instruments:

Initial Recognition and Measurement: All financial assets are initially recognized at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets, which are not at Fair Value Through Profit or Loss, are adjusted to the fair value on initial recognition. Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the marketplace (regular way trades) are recognized on the trade date i.e. the date that the Company commits to purchase or sell the asset.

However, Trade Receivables that do not contain significant financing components are measured at transaction price.

• For purposes of subsequent measurement financial assets are classified in four categories:
• Debt instruments at amortized cost
• Debt instruments at fair value through other comprehensive income (FVTOCI)
• Debt instruments derivatives and equity instruments at fair value through profit or loss (FVTPL)
• Equity instruments measured at fair value through other comprehensive income (FVTOCI)

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
• Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments which are held for trading and contingent consideration recognized by an acquirer in a business combination to which Ind AS 103 applies are classified as at FVTPL. For all other equity instruments the Company may make an irrevocable election to present in other comprehensive income subsequent changes in the fair value. The Company makes such election on an instrument by- instrument basis. The classification is made on initial recognition and is irrevocable.

If the Company decides to classify an equity instrument as at FVTOCI then all fair value changes on the instrument excluding dividends are recognized in the OCI. There is no recycling of the amounts from OCI to P&L even on sale of investment. However, the Company may transfer the cumulative gain or loss within equity.

A financial liability is derecognized 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 derecognition 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.

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 regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability the Company takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and / or disclosure purposes in these financial statements is determined on such basis except for measurements that have some similarities to fair value but are not fair value such as net realizable value in Ind AS 2.

Level I: The fair value of financial instruments quoted in active markets is based on their quoted closing price at the balance sheet date.

Level II: The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques using observable market data. Such valuation techniques include discounted cash flows, standard valuation models based on market parameters for interest rates, yield curves or foreign exchange rates, dealer quotes for similar instruments and use of comparable arms length transactions.

Level III: The fair value of financial instruments that are measured on the basis of entity specific valuations using inputs that are not based on observable market data (unobservable inputs).

• Foreign Exchange Transactions

Foreign currency transactions during the year are recorded at the rate of exchange prevailing at the date of transaction. Monetary asset and liabilities related to foreign currency transactions remaining unsettled are translated at the year-end rate. All exchange differences are dealt with in the Statement of Profit and Loss for the year.

• Leases

The Company as a Lessee: As per Ind AS-116 the Company has recognised lease liabilities and corresponding equivalent right-of-use assets. The Companys lease asset primarily consists of leases for Land, Buildings, Plant & Machinery and Vehicles. The Company assesses whether a contract contains a lease at inception of a contract. A contract is or contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

To assess whether a contract conveys the right to control the use of an identified asset the Company assesses whether

• The contract involves the use of an identified asset.
• The Company has substantially all the economic benefits from use of the asset through the period of the lease and
• The Company has the right to direct the use of the asset

At the date of commencement of the lease the Company recognises a Right-of-Use (ROU) asset and a corresponding lease liability for all lease arrangements in which it is a lessee except for leases with a term of 12 months or less (short-term leases) and low value leases.

For these short-term and low-value leases the Company recognises the lease payments as an operating expense. Certain lease arrangements include the options to extend or terminate the lease before the end of the lease term. ROU assets and lease liabilities includes these options when it is reasonably certain that they will be exercised. The lease liability is initially measured at amortised cost at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or if not readily determinable using the

incremental borrowing rates in the country of domicile of these leases. ROU assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful life of the underlying asset. ROU assets are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases the recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs. Lease liability and ROU assets have been separately presented in the Balance Sheet and lease payments have been classified as financing cash flows.

• Exceptional Items

Exceptional items are disclosed separately in the financial statements where it is necessary to do so to provide further understanding of the financial performance of the Company. These are material items of income or expense that have to be shown separately due to their nature or incidence.

• Other Notes

In the opinion of the Board, the current assets, loans and advances have a value on realization in the ordinary course of business at least equal to the amounts at which they are stated in the Balance Sheet and that the provision for known liability is adequate and not in excess of amount reasonably necessary.

Our total revenue consists of (i) Revenue from Sale of Products and (ii) Other Income, which are set forth given in the below table. Our total revenue for the three months three months period ended June 2025, fiscal 2025, fiscal 2024 and fiscal 2023 amounted to ? 17,148.37 lakhs, ? 60,474.07 lakhs, ? 65,087.68 lakhs and ? 50,657.43 lakhs respectively.

Revenue from Operations comprises of (i) Income from Sale of Products and (ii) Other Operating Income, which are set forth given in the below table. Company has generated revenue from operations amounting to ? 17,136.81 lakhs,

? 58,639.93 lakhs, ? 64,543.98 lakhs and ? 50,612 lakhs for the three months period ended June 2025, fiscal 2025, fiscal 2024 and fiscal 2023 respectively.

Income from Sale of Products: Company has reported Income from Sale of Products for the three months period ended June 2025, fiscal 2025, fiscal 2024 and fiscal 2023, amounting to ? 15,662.32 lakhs, ? 54,345.03 lakhs,

? 60,548.11 lakhs and ? 47,263.91 lakhs respectively. Income from Sale of Products comprises of revenue from sale of black pipes, sale of galvanised pipes, sale of GI Pole and Sale of Metal beam crash barriers.

Income from Sale of Products contributed 91.40%, 92.68%, 93.81% and 93.38% of the revenue from operations for the three months period ended June 2025, fiscal 2025, fiscal 2024 and fiscal 2023 respectively.

Other Operating Income: For the three months period ended June 2025, fiscal 2025, fiscal 2024 and fiscal 2023, our other operating income was amounted to ? 1,474.49 lakhs, ? 4,294.89 lakhs, ? 3,995.87 lakhs and ? 3,348.09 lakhs respectively. Other Operating Income contributed 8.60%, 7.32%, 6.19% and 6.62% of the revenue from operations for the three months period ended June 2025, fiscal 2025, fiscal 2024 and fiscal 2023 respectively.

• Other Income

For the three months period ended June 2025, fiscal 2025, fiscal 2024 and fiscal 2023, our other income was amounted to ? 11.56 lakhs, ? 1,834.15 lakhs, ? 543.71 lakhs and ? 45.43 lakhs respectively. Other income contributed to 0.07%, 3.03%, 0.84% and 0.09% of the total revenue for the three months period ended June 2025, fiscal 2025, fiscal 2024 and fiscal 2023 respectively.

• Expenditure

Our expenditure comprises of (i) Cost of Materials Consumed, (ii) Changes in Inventories of Finished Goods, (iii) Employee Benefits Expense, (iv) Finance Cost, (v) Depreciation and Amortization Expense, and (vi) Other Expenses. Our total expenditure for the three months period ended June 2025, fiscal 2025, fiscal 2024 and fiscal 2023 was reported at ? 16,327.98 lakhs, ? 57,234.95 lakhs, ? 63,580.22 lakhs and ? 50,426.00 lakhs respectively. Total expenses contributed 95.22%, 94.64%, 97.68% and 99.54% of the total revenue for the three months period ended June 2025, fiscal 2025, fiscal 2024 and fiscal 2023 respectively.