l. Provisions and contingent liabilities
Provisions

General

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. When the Company
expects some or all of a provision to
be reimbursed, for example, under an
insurance contract, the reimbursement
is recognised as a separate asset,
but only when the reimbursement is
virtually certain. The expense relating
to a provision is presented in the
statement of profit and loss net of
any reimbursement.

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.

Contingent liabilities

Contingent liabilities exist 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
will be required or the amount cannot
be reliably estimated. The Company
does not recognize a contingent
liability but discloses its existence and
other required disclosures in notes to
the standalone financial statements,
unless the possibility of any outflow in
settlement is remote.

m. Retirement and other employee
benefits

Retirement benefit in the form of
provident fund is a defined contribution
scheme. The Company has no
obligation, other than the contribution
payable to the provident fund. The
Company recognizes contribution

payable to the provident fund scheme as
an expense, when an employee renders
the related service. 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
recognized as a liability after deducting
the contribution already paid. If the
contribution already paid exceeds the
contribution due for services received
before the balance sheet date, then
excess is recognized as an asset to the
extent that the pre-payment will lead
to, for example, a reduction in future
payment or a cash refund.

The Company operates a defined
benefit gratuity plan in India, which
requires contributions to be made to a
separately administered fund.

The cost of providing benefits under
the defined benefit plan is determined
using the projected unit credit method.

Re-measurements, comprising of
actuarial gains and losses, the effect
of the asset ceiling, excluding amounts
included in net interest on the net
defined benefit liability and the return
on plan assets (excluding amounts
included in net interest on the net
defined benefit liability), are recognised
immediately in the standalone balance
sheet with a corresponding debit or
credit to retained earnings through OCI
in the period in which they occur.

Re-measurements are not reclassified
to statement of profit or loss in
subsequent periods.

Net interest is calculated by applying
the discount rate to the net defined
benefit liability or asset. The Company
recognises the following changes in
the net defined benefit obligation as an
expense in the standalone statement of
profit and loss:

- Service costs comprising
current service costs, past-

service costs; and

- Net interest expense or income

Long term and short term employee
benefits:

Accumulated leave, which is expected
to be utilized within the next 12 months,
is treated as short-term employee
benefit. The Company measures the
expected cost of such absences as the
additional amount that it expects to pay
as a result of the unused entitlement that
has accumulated at the reporting date.
The Company recognizes expected
cost of short-term employee benefit as
an expense, when an employee renders
the related service.

The Company treats accumulated leave
expected to be carried forward beyond
twelve months, as long-term employee
benefit for measurement purposes.
Such long-term compensated absences
are provided for based on the actuarial
valuation using the projected unit credit
method at the reporting date. Actuarial
gains/losses are immediately taken to
the statement of profit and loss and
are not deferred. The obligations are
presented as current liabilities in the
standalone balance sheet if the entity
does not have an unconditional right to
defer the settlement for at least twelve
months after the reporting date.

n. Financial instruments

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

(a) Financial assets

Initial recognition and measurement

Financial assets are classified, at
initial recognition, as subsequently
measured at amortised cost,
fair value through other
comprehensive income (OCI), and
fair value through profit or loss.

The classification of financial
assets at initial recognition
depends on the financial
asset's contractual cash flow

characteristics and the Company's
business model for managing
them. With the exception of trade
receivables that do not contain a
significant financing component,
the Company initially measures a
financial asset at its fair value plus,
in the case of a financial asset
not at fair value through profit
or loss, transaction costs. Trade
receivables that do not contain a
significant financing component
are measured at the transaction
price determined under Ind
AS 115. Refer to the accounting
policies in section (d) Revenue
from contracts with customers.

In order for a financial asset
to be classified and measured
at amortised cost or fair value
through OCI, it needs to give
rise to cash flows that are 'solely
payments of principal and interest
(SPPI)' on the principal amount
outstanding. This assessment is
referred to as the SPPI test and is
performed at an instrument level.
Financial assets with cash flows
that are not SPPI are classified and
measured at fair value through
profit or loss, irrespective of the
business model.

The Company's business model
for managing financial assets
refers to how it manages its
financial assets in order to
generate cash flows. The business
model determines whether cash
flows will result from collecting
contractual cash flows, selling the
financial assets, or both. Financial
assets classified and measured at
amortised cost are held within a
business model with the objective
to hold financial assets in order
to collect contractual cash flows
while financial assets classified
and measured at fair value through
OCI are held within a business
model with the objective of both
holding to collect contractual
cash flows and selling.

Subsequent measurement

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

- Financial assets at fair value
through profit or loss

- Financial assets at amortised
cost (debt instruments)

- Financial assets at fair

value through other

comprehensive income
(FVTOCI) with recycling of
cumulative gains and losses
(debt instruments)

- Financial assets designated

at fair value through

OCI with no recycling
of cumulative gains and
losses upon derecognition
(equity instruments)

- Financial assets at fair value
through profit or loss

Financial asset at amortised cost
(debt instruments)

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

a) The asset is held within
a business model whose
objective is to hold assets
for collecting contractual
cash flows, and

b) 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.

This category is the most
relevant to the Company.
After initial measurement, such
financial assets are subsequently
measured at amortised cost
using the effective interest rate
(EIR) method and are subject to

impairment as per the accounting
policy applicable to 'Impairment
of financial assets'. Amortised
cost is calculated by taking into
account any discount or premium
on acquisition and fees or costs
that are an integral part of the EIR.
The EIR amortisation is included
in other income in the statement
of profit or loss. The losses arising
from impairment are recognised
in the statement of profit or loss.
The Company's financial assets
at amortized costs include trade
receivables, loans to subsidiaries
and interest thereon, security
deposits and other receivables
grouped under other current
financial assets.

Financial asset at Fair Value
through OCI (FVTOCI) (debt
instruments)

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

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

b) The asset's contractual cash
flows represent SPPI.

Debt instruments included
within the FVTOCI category are
measured initially as well as at each
reporting date at fair value. Fair
value movements are recognized
in other comprehensive income
(OCI). However, the Company
recognizes interest income,
impairment losses & reversals
and foreign exchange gain or
loss in the statement of profit
and loss. On derecognition of the
asset, the cumulative fair value
changes previously recognised in
OCI is reclassified from equity to
statement of profit and loss.

the risks and rewards of the
asset, but has transferred
control of the asset.

When the Company has
transferred its rights to receive
cash flows from an asset or has
entered into a pass-through
arrangement, it evaluates if and
to what extent it has retained the
risks and rewards of ownership.
When it has neither transferred
nor retained substantially all of
the risks and rewards of the asset,
nor transferred control of the
asset, the Company continues to
recognise the transferred asset
to the extent of the Company's
continuing involvement. In
that case, the Company also
recognises an associated liability.
The transferred asset and the
associated liability are measured
on a basis that reflects the
rights and obligations that the
Company has retained.

Continuing involvement that takes
the form of a guarantee over the
transferred asset is measured at
the lower of the original carrying
amount of the asset and the
maximum amount of consideration
that the Company could be
required to repay.

Impairment of financial assets

In accordance with Ind AS 109, the
Company applies expected credit
loss (ECL) model for measurement
and recognition of impairment
loss on the following financial
assets and credit risk exposure:

a. Financial assets that are
debt instruments, and are
measured at amortised
cost e.g., loans, debt
securities, deposits,

b. Financial assets that are
equity instruments and not
debt which company has
measured as at FVTOCI

c. Trade receivables or any
contractual right to receive
cash or another financial asset
that result from transactions
that are within the scope
of Ind AS 115 (referred to as
'Trade receivables')

The Company follows 'simplified
approach' for recognition of
impairment loss allowance on:

- Trade receivables or contract
revenue receivables; and

- Loans and other

financial assets

The application of simplified
approach does not require the
company to track changes in
credit risk. Rather, it recognises
impairment loss allowance based
on lifetime Expected Credit Loss
(ECL) at each reporting date, right
from its initial recognition.

ECL impairment loss allowance (or
reversal) recognized during the
period is recognized as expense
(or income) in the statement of
profit and loss. This amount is
reflected under the head 'other
expenses' in the statement of
profit and loss. The standalone
balance sheet presentation for
various financial instruments is
described below:

- Financial assets measured
as at amortised cost
and contractual revenue
receivables: ECL is presented
as an allowance, i.e., as
an integral part of the
measurement of those assets
in the standalone balance
sheet. The allowance
reduces the net carrying
amount. Until the asset
meets write-off criteria, the
Company does not reduce
impairment allowance from
the gross carrying amount.

- Loan commitments

and financial guarantee
contracts: ECL is presented
as a provision in the
standalone balance sheet,
i.e. as a liability.

For assessing increase in credit
risk and impairment loss, the
Company combines financial
instruments on the basis of shared
credit risk characteristics with
the objective of facilitating an
analysis that is designed to enable
significant increases in credit risk
to be identified on a timely basis.

(b) Financial liabilities

Initial recognition, measurement
and presentation

Financial liabilities are classified,
at initial recognition, as financial
liabilities at fair value through
profit or loss, loans a nd
borrowings, payables, or as
derivatives designated as hedging
instruments in an effective hedge,
as appropriate.

All financial liabilities are
recognised initially at fair value
and, in the case of loans and
borrowings and payables,
net of directly attributable
transaction costs.

The Company's financial liabilities
include trade and other payables,
loans and borrowings including
bank overd rafts, derivative financial
instruments, lease liabilities and
other financial liabilities.

Subsequent measurement

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

Financial liabilities at fair value
through profit or loss

Financial liabilities at fair value
through profit or loss include
financial liabilities held for trading
and financial liabilities designated
upon initial recognition as at
fair value through profit or loss.
Financial liabilities are classified as
held for trading if they are incurred
for the purpose of repurchasing
in the near term. This category
also includes derivative financial
instruments entered into by the
Company that are not designated
as hedging instruments in
hedge relationships as defined
by Ind AS 109.

Gains or losses on liabilities held
for trading are recognised in the
statement of profit or loss

Financial liabilities are designated
upon initial recognition at fair value
through profit or loss only if the
criteria in Ind AS 109 are satisfied.
For liabilities designated as FVTPL,
fair value gains/ losses attributable
to changes in own credit risk are
recognized in OCI. These gains
/ losses are not subsequently
transferred to statement of profit
and loss. However, the Company
may transfer the cumulative gain
or loss within equity. All other
changes in fair value of such
liability are recognised in the
statement of profit or loss. The
Company has not designated any
financial liability as at fair value
through profit and loss.

Financial Liability at amortized
costs (Loans and borrowings)

This is the category most relevant
to the Company. After initial
recognition, interest-bearing loans
and borrowings are subsequently
measured at amortised cost using
the EIR method. Gains and losses
are recognised in statement of
profit or loss when the liabilities are
derecognised as well as through
the EIR amortisation process.

Amortised cost is calculated by
taking into account any discount
or premium on acquisition and fees
or costs that are an integral part
of the EIR. The EIR amortisation is
included as finance costs in the
statement of profit and loss.

This category generally applies
to borrowings. For more
information refer note 18.

Supplier finance arrangements

The Company has established
supplier finance arrangements.
The Company evaluates whether
financial liabilities covered such
arrangements continue to be
classified within trade payables,
or they need to be classified as
a borrowing or as part of other
financial liabilities / as a separate
line item on the face of the balance
sheet. Such evaluation requires
exercise of judgment basis
specific terms of the arrangement.

The Company classifies financial
liabilities covered under supplier
finance arrangement within
trade payables in the balance
sheet only if (i) the obligation
represents a liability to pay
for goods and services, (ii) is
invoiced and formally agreed
with the supplier, (iii) is part of
the working capital used in its
normal operating cycle, (iv) the
Company is not legally released
from its original obligation to the
supplier, and has not assumed a
new obligation toward the bank
or another party, and (v) there is
no substantial modification to the
terms of the liability.

If one or more of the above
criteria are not met, the Company
derecognises its original
liability toward the supplier and
recognise a new liability toward
the bank which is classified as
bank borrowing or other financial
liability, depending on factors
such as whether the Company (i)
has obligation toward bank, (ii) is
getting extended credit period
such that obligation is no longer

part of its working capital cycle,
(iii) is paying interest directly
or indirectly, (iv) has provided
guarantee or security, and/ or
(v) is recognized as borrower in
the bank books.

Cash flows related to liabilities
arising from supplier finance
arrangements that continue to
be classified in trade payables in
the standalone balance sheet are
included in operating activities in
the standalone statement of cash
flows, when the Company finally
settles the liability.

In cases, where the Company
has derecognised its original
liability toward the supplier and
recognise a new liability toward
the bank, the Company has
assessed that the bank is acting
as its agent in making payment to
the supplier. The payment made
by the Company to the bank
toward interest, if any, as well
as on settlement is presented as
financing cash outflow.

De-recognition

A financial liability is derecognised
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 recognised in
the statement of profit or loss.

(c) Offsetting of financial
instruments

Financial assets and financial
liabilities are offset and the
net amount is reported in the
standalone balance sheet if there

is a currently enforceable legal
right to offset the recognised
amounts and there is an intention
to settle on a net basis, to realise
the assets and settle the liabilities
simultaneously.

o. Cash and cash equivalents

Cash and cash equivalent in the
standalone balance sheet comprise
cash at banks and on hand and short¬
term deposits with an original maturity
of three months or less, that are readily
convertible to a known amount of cash
and subject to an insignificant risk of
changes in value.

p. Earnings per share

Basic earnings per share is calculated
by dividing the net profit or loss
attributable to equity holder of the
company (after deducting preference
dividends and attributable taxes)
by the weighted average number of
equity shares outstanding during the
period. The weighted average number
of equity shares outstanding during the
period is adjusted for events such as
bonus issue, bonus element in a rights
issue, share split, and reverse share
split (consolidation of shares) that have
changed the number of equity shares
outstanding, without a corresponding
change in resources.

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

q. Derivative financial instruments and
hedge accounting

The Company uses derivative financial
instruments, such as foreign currency
forward contracts, to hedge its foreign
currency risks. Such derivative financial
instruments are initially recognised
at fair value on the date on which a
derivative contract is entered into

and are subsequently re-measured at
fair value. Derivatives are carried as
financial assets when the fair value is
positive and as financial liabilities when
the fair value is negative.

Any gains or losses arising from changes
in the fair value of derivatives are taken
directly to profit or loss, except for the
effective portion of cash flow hedges,
which is recognised in OCI and later
reclassified to profit or loss when the
hedge item affects profit or loss.

For the purpose of hedge accounting,
hedges are classified as cash flow
hedges (hedging the exposure
to variability in cash flows that is
attributable to foreign currency
risk associated with External
Commercial Borrowings).

At the inception of a hedge
relationship, the Company formally
designates and documents the hedge
relationship to which it wishes to
apply hedge accounting and the risk
management objective and strategy
for undertaking the hedge.

The documentation includes
identification of the hedging
instrument, the hedged item, the
nature of the risk being hedged, and
how the Company will assess whether
the hedging relationship meets the
hedge effectiveness requirements
(including the analysis of sources
of hedge ineffectiveness and how
the hedge ratio is determined). A
hedging relationship qualifies for
hedge accounting if it meets all of the
following effectiveness requirements:

- There is 'an economic relationship'
between the hedged item and the
hedging instrument.

- The effect of credit risk does
not 'dominate the value
changes' that result from that
economic relationship.

- The hedge ratio of the hedging
relationship is the same as that

resulting from the quantity of the
hedged item that the Company
actually hedges and the quantity
of the hedging instrument that the
Company actually uses to hedge
that quantity of hedged item.

Hedges that meet the criteria for
hedge accounting are accounted for,
as described below:

The effective portion of the gain or
loss on the hedging instrument is
recognised in OCI in the Effective
portion of cash flow hedges, while
any ineffective portion is recognised
immediately in the statement of profit
and loss. The Effective portion of cash
flow hedges is adjusted to the lower
of the cumulative gain or loss on the
hedging instrument and the cumulative
change in fair value of the hedged item.

The Company uses foreign currency
forward contracts as hedges of its
exposure to foreign currency risk in
respect of principal portion of the
External Commercial Borrowings.

The Company designates only the
spot element of a forward contract
as a hedging instrument. The forward
element is recognised in OCI. The
amount accumulated in OCI is
reclassified to statement of profit or
loss as reclassification adjustment in
the same period or periods during
which the hedged cash flows affect
profit or loss.

If cash flow hedge accounting is
discontinued, the amount that has
been accumulated in OCI must remain
in accumulated OCI if the hedged
future cash flows are still expected to
occur. Otherwise, the amount will be
immediately reclassified to statement
of profit or loss as a reclassification
adjustment. After discontinuation, once
the hedged cash flow occurs, any
amount remaining in accumulated OCI
must be accounted for depending on
the nature of the underlying transaction
as described above.

r. Events after the reporting period

If the Company receives information
after the reporting period, but prior
to the date of approval for issue of
financial statements, about conditions
that existed at the end of the reporting
period, it will assess whether the
information affects the amounts that it
recognises in its standalone financial
statements. The Company will adjust the
amounts recognised in its standalone
financial statements to reflect any
adjusting events after the reporting
period and update the disclosures that
relate to those conditions in light of
the new information. For non-adjusting
events after the reporting period, the
Company will not change the amounts
recognised in its standalone financial
statements but will disclose the
nature of the non-adjusting event and
an estimate of its financial effect, or a
statement that such an estimate cannot
be made, if applicable.

2.2 Significant accounting judgments
estimates and assumptions

The preparation of the Company's standalone
financial statements requires management to
make judgements, estimates and assumptions
that affect the reported amounts of revenues,
expenses, assets and liabilities, and the
accompanying disclosures, and the disclosure
of contingent liabilities. Uncertainty about
these assumptions and estimates could result in
outcomes that require a material adjustment to
the carrying amount of assets or liabilities affected
in future periods.

Estimates and assumptions

The key assumptions concerning the future and
other key sources of estimation uncertainty at
the reporting date, that have a significant risk
of causing a material adjustment to the carrying
amounts of assets and liabilities within the
next financial year, are described below. The
Company based its assumptions and estimates
on parameters available when the standalone
financial statements were prepared. Existing
circumstances and assumptions about future
developments, however, may change due to
market changes or circumstances arising that are

beyond the control of the Company. Such changes

are reflected in the assumptions when they occur.

1. Taxes

Deferred tax assets are recognised on
unabsorbed depreciation since these losses
do not have any expiry and will offset the
deferred tax liability over the period when
the deferred tax liabilities reverse. Deferred
tax assets are recognized on carry-forward
business losses and disallowances with
finite life for allowance only to the extent
that management projections provide
evidence that these losses/disallowances
could be recovered within the expiry period.
Management assesses the recoverability
of deferred tax assets created on business
losses and finite life disallowances on an
annual basis and significant management
judgement is required to determine the
amount of deferred tax assets that can be
recognised, based upon the likely timing and
the level of future taxable profits that would
be available for set-off against these losses
and disallowances, together with future tax
planning strategies.

Based on the annual assessment performed
by the management considering the
changes in the business scenario for
determining recoverability of deferred
tax assets created, the Company has not
created deferred tax assets on unabsorbed
tax losses carried forward of INR 11,343.05
million (31st March 2025: INR 8,099.47 million)
and on unclaimed Section 94B disallowance
of INR 5,163.59 million (31st March 2025:
3,906.26 million). The Company has a history
of losses and there is lack of reasonable
certainty regarding opportunities available
for utilization of these balances.

2. Valuation of investments

Investments in subsidiaries are carried at
cost in the standalone financial statements.
Where an indication of impairment exists,
the carrying amount of the investment is
assessed and written down immediately
to its recoverable amount. The recoverable
amount is the higher of an asset's fair value
less costs of disposal and value in use. On
disposal of investments in subsidiaries, the
difference between net disposal proceeds
and the carrying amounts are recognized in
the statement of profit and loss.

The recoverable amount calculation is based
on a DCF (Discounted Cash Flow) model or
fair value of underlying assets and liabilities
of the subsidiary (in case of non-operating
subsidiaries). The cash flows are based
on projections approved by the Board of
Directors of the Company and do not include
restructuring activities that the company is
not yet committed to or significant future
investments that will enhance the asset's
performance of the CGU being tested.
The recoverable amount is sensitive to the
discount rate used for the DCF model as well
as the expected future cash-inflows and the
growth rate used for extrapolation purposes.
The key assumptions used to determine
the recoverable amount for the different
investments are disclosed in Note 5.

3. Defined benefit plans (gratuity benefits)

The cost of the defined benefit gratuity plan
is determined using actuarial valuations. 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 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.

The calculation is most sensitive to change
in the discount rate. In determining the
appropriate discount rate for plans operated
in India, the management considers
the interest rates of government bonds
here remaining maturity of such bond
correspond to expected term of defined
benefit obligation.

The mortality rate is based on publicly
available mortality tables. Those mortality
tables tend to change only at interval in
response to demographic changes. Future
salary increases and gratuity increases are
based on expected future inflation rates.

Further details about gratuity obligations are
given in Note 39.

3 New and amended standards.

The following standards and amendments are
effective for annual periods beginning on or after
1st April 2025. The Company has not early adopted
any standard, interpretation or amendment that
has been issued but is not yet effective.

(i) Amendments to Ind AS 21 - Lack of
exchangeability

The Ministry of Corporate Affairs (MCA)
notified the Companies (Indian Accounting
Standards) Amendment Rules, 2025, which
amend Ind AS 21, The Effects of Changes in
Foreign Exchange Rates to specify how an
entity should assess whether a currency is
exchangeable and how it should determine
a spot exchange rate when exchangeability
is lacking. The amendments also require
disclosure of information that enables users
of its financial statements to understand how
the currency not being exchangeable into
the other currency affects, or is expected
to affect, the entity's financial performance,
financial position and cash flows.

The amendments are effective for
annual reporting periods beginning on
or after 1st April 2025. When applying
the amendments, an entity cannot
restate comparative information.

(ii) Amendments to Ind AS 1 - Classification
of Liabilities as Current or Non-current

and Non-current Liabilities with

Covenants.

In August 2025, the MCA notified
amendments to paragraphs 69 to 76 of Ind AS
1 to specify the requirements for classifying
liabilities as current or non-current. The
amendments clarify:

- What is meant by a right to
defer settlement

- That a right to defer must exist at the
end of the reporting period

- That classification is unaffected by the
likelihood that an entity will exercise its
deferral right

- That only if an embedded derivative in
a convertible liability is itself an equity

instrument would the terms of a liability
not impact its classification

In addition, a requirement has been
introduced to require disclosure when a
liability arising from a loan agreement is
classified as non-current and the entity's
right to defer settlement is contingent
on compliance with future covenants
within twelve months.

If there is a breach of a material covenant of a
long-term loan arrangement on or before the
end of the reporting period, resulting in the
liability becoming payable on demand as at
the reporting date, and the lender agrees—
after the reporting period but before the
financial statements are approved for issue—
not to demand repayment for at least 12
months as a consequence of the breach, this
shall not be treated as an adjusting event.
Accordingly, the entity is required to classify
the liability as current.

The amendments are effective for annual
reporting periods beginning on or after 1st
April 2025 retrospectively in accordance
with Ind AS 8.

The amendments do not have a

material impact on the Company's
financial statements.

(iii) Amendments to Ind AS 7 and Ind AS 107 -
Supplier Finance Arrangements

In August 2025, the MCA notified

amendments to Ind AS 7 Statement of Cash
Flows and Ind AS 107 Financial Instruments:
Disclosures to clarify the characteristics of
supplier finance arrangements and require

additional disclosure of such arrangements.
The disclosure requirements in the
amendments are intended to assist users
of financial statements in understanding the
effects of supplier finance arrangements on
an entity's liabilities, cash flows and exposure
to liquidity risk

(iv) International Tax Reform—Pillar Two
Model Rules - Amendments to Ind AS 12

In August 2025, the MCA notified
amendments to Ind AS 12 Income Taxes
in response to the OECD's BEPS Pillar Two
rules and include:

* A mandatory temporary exception
to the recognition and disclosure
of deferred taxes arising from the
jurisdictional implementation of the
Pillar Two model rules; and

* Disclosure requirements for affected
entities to help users of the financial
statements better understand an
entity's exposure to Pillar Two income
taxes arising from that legislation,
particularly before its effective date.

The mandatory temporary exception - the
use of which is required to be disclosed -
applies immediately. The remaining disclosure
requirements apply for annual reporting periods
beginning on or after 1st April 2025, but not
for any interim periods ending on or before
31st March 2026.

The Company has reviewed the new
pronouncements and based on its evaluation
has determined that these amendments do not
have a significant impact on the Company's
Financial Statements.

A. Assets under construction

Capital work in progress comprises expenditure incurred for construction of plant, machinery and equipment
and building including material procured for plant improvements related to environment, health and safety,
for machineries at packing units at multiple plants and other projects.

B. Capitalisation of borrowing cost.

During the current year as well as previous year, the Company has not capitalised any borrowing cost since
the Company has not availed any long term loans for acquisition of property, plant and equipment which
fulfills the condition of Ind AS 23.

C. Revaluation of land, buildings and plant, machinery and equipment

During the year ended 31st March 2022, the Company had appointed a registered independent valuer who
has relevant valuation experience for valuation of property, plant and equipment in India of more than 10 years
and is a registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017,
to determine the fair value of freehold land, building, plant, machinery and equipment and leasehold land
(forming part of right of use assets). As an outcome of this process, during the year ended 31st March 2022,
the Company had recognised decrease in the gross block of freehold land of INR 47.35 million and leasehold
land included under right of use assets of INR 58.71 million and increase in building of INR 2,036.10 million and
plant, machinery and equipment of INR 1,743.72 million on 31st March 2022. The Company had recognised this
increase within the revaluation reserve and statement of other comprehensive income.

The Company determined these fair values after considering physical condition of the asset, technical usability
/ capacity, salvage value, quotes from independent vendors. The fair value of land is determined using market
approach and building, plant, machinery and equipment using Depreciated Replacement Cost (DRC). The
DRC is derived from the Gross Current Reproduction / Replacement Cost (GCRC) which is reduced by
considering depreciation. The fair value measurement was classified under level 3 of the fair value hierarchy.
In the current year, the company has assessed that there is no significant change in the fair value of land,
building, plant, machinery and equipment and leasehold land from existing carrying value of land, building,
plant, machinery and equipment and leasehold land.

D. Impairment assessment of CGU

As per the requirements of Ind AS 36, the Company tests at the end of every reporting period, whether
there is any indication that the property, plant and equipment may be impaired. If any such indication exists,
the Company estimates the recoverable amount of the property, plant and equipment. When the carrying
amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to
its recoverable amount.

During the current year ended 31st March 2026, as an indication exists due to adverse economic conditions,
the Company performed impairment assessment with respect to Integrated milling division (CGU). The
recoverable amount was determined using value in use approach based on cashflow projections which
are discounted to their present value using a pre-tax discount rate of 11.42%. Based on the outcome of
this assessment, management has recognized an impairment loss amounting to INR 2,947.85 million for the
integrated milling division. As the Company follows the revaluation model for property, plant and equipment
and has an existing revaluation surplus relating to this division, the impairment loss has been accounted for as
a revaluation decrease in the Other Comprehensive Income (OCI) for the year ended 31st March 2026.

Note 5(a): Investment in subsidiaries are carried at cost in financial statements. Wherever indicators o
impairment exists, the carrying amount of the investment is assessed and written down to its recoverable amount
The recoverable amount is the higher of an asset's fair value less costs of disposal and value in use. The recoverabh
amount calculation is based on a DCF (Discounted Cash Flow) model. Value in use is calculated using cash flov
projections covering a five-year forecast considering growth rate of 3% - 4%, applying a discount rate of 11.34% Ý
13.92% to the cash flow projections.

During current year the Company has recognised an impairment allowance of INR 598.05 million (31st March 2025
INR Nil) which has been netted off against the reversal of impairment allowances of INR 598.05 million on conversioi
of loan into equity instrument.

Note 5(b): Investments at fair value through OCI (fully paid) reflect investment in unquoted equity securities
These equity shares are designated as FVTOCI as they are not held for trading purpose and are not in simila
line of business as the Company. Thus, disclosing their fair value fluctuation in profit or loss will not reflect th<
purpose of holding.

Deferred tax assets are recognised on unused tax losses to the extent that it is probable that taxable profit will be
available against which the losses can be utilised. Significant management judgement is required to determine
the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future
taxable profits.

The Company has unabsorbed depreciation of INR 20,086.91 million (31st March 2025: INR 17,821.18 million) on which
deferred tax asset has been created. The Company has not recognised deferred tax asset on unutilised carried
forward business losses due to uncertainty about the availability of sufficient future taxable income against which
these losses may be offset. Accordingly, no deferred tax asset has been recognised in respect of these losses. The
unabsorbed depreciation can be carried forward for indefinite period, whereas the unabsorbed business losses
and the MAT credit entitlement can be carried forward for 8 years and 15 years respectively.

The Company has not created deferred tax assets on unabsorbed tax losses carried forward of INR 11,343.05
million (31st March 2025: INR 8,099.47 million) and on unclaimed Section 94B disallowance of INR 5,163.59 million
(31st March 2025: INR 3,906.26 million), due to its history of losses and lack of reasonable certainty regarding
opportunities available for utilization of these balances. The unabsorbed losses can be carried forward for 8 years
and will expire between financial year 2026-27 to 2033-34 and unabsorbed Sec 94B disallowance can be utilised
within a period of 8 years and will expire between financial year 2031-32 to 2033-34.

Equity contribution from parent :

During previous years, Company had received waiver in respect of interest accrued on trade payables for
purchase of raw sugar and advances for sale of white sugar received from its fellow subsidiary Wilmar Sugar
Pte. Ltd. The Company accounted for these waivers as equity contribution from the parent and has presented
the same as a separate component of equity under other equity. There is no waiver in the current year as well
as in previous year.

Equity instruments through Other Comprehensive Income :

Changes in equity instrument, represents reserves created in respect of investment in unquoted equity shares
carried at Fair Value Through Other Comprehensive Income.

Revaluation reserve :

Revaluation reserve is credited when property, plant and equipment are revalued at fair value and debited
for assets disposed off during the year, for depreciation charge for the year on revalued assets (net of taxes)
or for impairment losses (if any) recorded, for details of impairment, refer note 3. The reserve is utilised in
accordance with the requirements of Ind AS 16. During the year, the Company recognised amount of INR
2,034.93 million (31st March 2025: INR 15.05 million) (net of deferred tax) as reversal of revaluation reserve on
disposal of assets and impairment. At each reporting date, the difference between depreciation based on
the revalued carrying amount of asset charged to profit and loss and depreciation based on assets' original
cost is reclassified from Revaluation Surplus to retained earnings. During the year, the Company transferred
amount equivalent to depreciation charge of INR 744.23 million (31st March 2025: INR 739.87 million) from
revaluation reserve to retained earnings as per the requirements of Ind AS 16.

Retained earnings :

Retained earnings represents surplus/(deficit) earned from the operations of the Company.

Cost of cash flow hedges :

The Company designates the forward element of foreign currency forward contracts as cost of hedging and
accumulates this cost in the statement of other comprehensive income over the term of the contract. Such
amount is amortised to the statement of profit and loss on a systematic basis over the term of the contract.

Effective portion of cash flow hedges :

The Company uses hedging instruments as part of its management of foreign currency risk associated to
external commercial borrowings. For hedging foreign currency risk, the Company uses foreign currency
forward contracts. To the extent these hedges are effective, the change in fair value of the hedging instrument
is recognised in the effective portion of cash flow hedges. Amounts recognised in the effective portion of cash
flow hedges is reclassified to the statement of profit and loss when the hedged item affects profit or loss.

Note A: Repayment schedule of external commercial borrowings, term loans and non-convertible
debentures is as follows:

a) During the previous year, the company refinanced its External Commercial Borrowing (ECB) with MUFG Bank.
The funds were utilized to repay the existing ECB previously obtained from its holding company, Wilmar
Sugar and Energy Pte. Ltd. The refinanced ECB with MUFG has bullet repayment due at the end of 72 months
from the date of withdrawal, i.e., repayable on 7th August 2030.

c) Term loans availed from First Abu Dhabi Bank, having maturity date of 12th May 2026, are repayable in 20
structured quarterly instalments commencing from 12th August 2021.

d) Term loans availed from DBS, having maturity date of 4th May 2027, are repayable in 16 structured quarterly
instalments commencing from 4th August 2023.

e) Term loans availed from Standard Chartered Bank, having maturity date of 6th June 2026, are repayable in 16
structured quarterly instalments commencing from 7th September 2022.

f) The company has issued 9.45% non-convertible debentures (NCD) amounting to INR 2,850 million to DBS
Bank Ltd. The NCDs are repayable on maturity, i.e., after 60 months from the date of disbursement. The
maturity date is 4th January 2029.

Note B: Nature of Security/guarantees
Secured Non-convertible debentures

Exclusive charge by way of mortgage/ hypothecation on all the immoveable / moveable assets at
Haldia & Panchaganga.

Note C: Corporate guarantee

Corporate Guarantee (CG) of Wilmar International Ltd. has been issued in respect of an ECB loan extended by
MUFG Bank, term loans extended by First Abu Dhabi Bank, Standard Chartered Bank, and DBS Bank India Ltd., and
working capital loans (refer note 22) extended by Bank of America, outstanding as at 31st March 2026, amounting
to INR 3,930 million. Further, the non convertible debentures issued to financial institution and banks are secured
by Corporate Guarantee given by Wilmar International Limited. The total corporate guarantees outstanding as at
31st March 2026 aggregate to INR 46,006.63 million (31st March 2025: INR 51,247.03 million).

Note D: The Company has not been declared wilful defaulter by any bank or financial institution or government or
any government authority.

Note E: The Company has been sanctioned working capital limits in excess of INR 50 million in aggregate
from banks or financial institutions during the year on the basis of security of current assets.

The quarterly return or statement of current assets filed by the Company with bank or financial institution, for
working capital limit in excess of INR 50 million, are in agreement with books of accounts.

Covenants :

During the year ended 31st March 2026 and 31st March 2025, the Company has complied with the financial covenant
of Security Cover ratio of 1.25 times, applicable to non-convertible debentures issued to financial institutions. For
all the other borrowings availed by the Company, no financial covenants were applicable on these borrowings.
The affirmative, informative and negative covenants prescribed in the borrowings documents executed by the
Company for all borrowings availed from banks and financial institutions were complied with by the Company
during the year ended 31st March 2026 and 31st March 2025.

As at the end of the reporting period, the aggregate amount of transaction price allocated to the remaining
performance obligations under contracts with customers is INR 1,109.42 million. This amount primarily pertains
to advances received against export sales. The performance obligations corresponding to these advances are
expected to be satisfied, and the related revenue recognized, within a period of one year from the reporting date.
Accordingly, the Company expects to recognize the entire amount as revenue during the next financial year. The
Company does not disclose the transaction price allocated to remaining performance obligations that have an
original expected duration of one year or less, as permitted under paragraph 121(a) of Ind AS 115.

Note 36: CSR Expenditure

The requirement of CSR spending for the financial years 2025-26 and 2024-25 was not applicable to the Company
as per Section 135(5) of the Act as Company has an average net loss for the three immediately preceding
financial years.

Note 37: Earnings Per Share [EPS]

Basic EPS amounts are calculated by dividing the profit/(loss) for the year attributable to equity holders by the
weighted average number of equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit/(loss) attributable to equity holders of the Company by
the weighted average number of equity shares outstanding during the year plus the weighted average number
of equity shares that would be issued on conversion of all the dilutive potential equity shares into equity shares.

i. Dispute pertaining to funds used for purchase of land by erstwhile subsidiary of the Company (subsidiary
was merged with the Company in previous year) being considered as undisclosed income and added as
income in tax computation. The Company has filed an appeal before CIT appeal.

ii. Disputes pertaining to denial of cenvat credit on sugar cess, denial of cenvat credit on certain items
used for fabrication of plant/machinery, or for laying of plant/machinery foundation or making of capital
goods, demand under Rule 6(3) of the CENVAT Credit Rules, cenvat credit disallowed due to invoices
being in the name of the head office and credit availed at plants and other matters.

iii. Disputes related to disallowance of input tax credit due to mismatch in forms/details filed and retention/
reduction of input tax credit by assuming dealers holding license to generate, distribute or transmit
electricity and other matters.

iv. Disputes related to reversal of common credit as per rule 42 of CGST Rules, 2017, mismatch of ITC
due to various reasons, demand to levy tax on supply of ENA for liquor manufacturing and GST on
supply of steam.

Litigations pertaining to short sanction of GST refund claim have not been considered as contingent
liability, since the Company would get the credit in electronic ledger for the amount of refund that is
rejected and thus, there would be no loss of asset for the Company on the outcome of this litigation, i.e,
the Company would either get the refund or the Company would retain the credit in the electronic ledger.

v. Disputes related to non-payment of Special Additional Duty (SAD) at the time of import of goods (which
was subsequently paid by the Company along with interest) and duty levied on the imported goods on
the context of wrong classification / availing incorrect exemption.

vi Litigations related to erstwhile Brazilian subsidiaries pertains to labour litigations of erstwhile Brazilian
subsidiaries in which the Company has been made a party to these litigations, on account of economic
group concept considered by the Lower Court in Brazil. The Company has paid deposits of INR 165.84
million as at 31st March 2026 (31st March 2025: INR 165.84 million) for contesting these judgements
in Higher Court in Brazil which has been clubbed under "Amount paid under protests to government
authorities" and this balance has been fully impaired in the books of accounts as at 31st March 2026.

vii. Other matters mainly consist of litigations related to claims filed against customers / vendors for recovery
of trade receivable / advance balances and other legal suits.

Management has assessed above matters as only possible but not probable. The Company does not
expect any outflow of economic resources in respect of the above.

Note 39: Defined Benefit plans

The Company has a defined benefit gratuity plan. The company's defined benefit gratuity plan is a final salary plan
for employees, which requires contributions to be made to a separately administered fund.

The gratuity plan is governed by code on social security 2020. Employee who has completed five years of service
is entitled to specific benefit. The level of benefits provided depends on the member's length of service and salary
at retirement age. The gratuity fund is managed by the Life Insurance Corporation of India (LIC). The company's
obligation in respect of gratuity plan is provided based on the actuarial valuation. The company recognises
actuarial gains and losses immediately in other comprehensive income net of taxes.

Salary increases and gratuity increases are based on expected future inflation rates.

Risk to the plan

Following risks are associated with the plan:

A. Actuarial 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: Salary hikes that are higher than the assumed salary escalation will result
into an increase in obligation at a rate that is higher than expected.

Variability in mortality rates: If actual mortality rates are higher than assumed mortality rate assumption than
the Gratuity Benefits will be paid earlier than expected. Since there is no condition of vesting on the death
benefit, the acceleration of cash flow will lead to an actuarial loss or gain depending on the relative values of
the assumed salary growth and discount rate.

Variability in withdrawal rates: If actual withdrawal rates are higher than assumed withdrawal rate assumption
than the Gratuity Benefits will be paid earlier than expected. The impact of this will depend on whether the
benefits are vested as at the resignation date.

B. 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.

C. 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 cash flows.

D. 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. The discount rate reflects the time
value of money. An increase in discount rate leads to decrease in Defined Benefit Obligation of the plan
benefits & vice versa. This assumption depends on the yields on the corporate/government bonds and hence
the valuation of liability is exposed to fluctuations in the yields as at the valuation date.

E. 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 code on social security 2020 thus requiring
the companies to pay higher benefits to the employees. This will directly affect the present value of the
Defined Benefit Obligation and the same will have to be recognized immediately in the year when any such
amendment is effective.

Actuarial Assumptions

Key actuarial assumptions are given below:

Discount Rate:

The rate used to discount other long term employee benefit obligation (both funded and unfunded) is
determined by reference to market yield at the balance sheet date on high quality government bonds.

Salary Growth Rate:

This is Management's estimate of the increases in the salaries of the employees over the long term. Estimated
future salary increases should take account of inflation, seniority, promotion and other relevant factors such as
supply and demand in the employment market.

Rate of Return on Plan Assets:

This assumption is required only in case of funded plans. Interest income on plan assets is calculated using
the rate used to discount the defined benefit obligation.

Mortality:

This assumption is based on the standard published mortality table without any adjustment.

Letter of comfort

Ultimate holding company Wilmar International Limited has provided a letter of comfort to MUFG Bank for working
capital, SCB Bank for buyer's credit facilities and DBS Bank for the short term forward lines made available by the
bank to the Company. For further details refer note 22.

Corporate guarantees

a. The Company has obtained corporate guarantees from Wilmar International Limited INR 46,006.63 million
(31st March 2025: INR 51,247.03 million) towards term loans, external commercial borrowings and working
capital limits extended by banks/debentures issued to financial institutions.

b. The Company has also provided guarantees on behalf of subsidiaries amounting to INR 450 million (31st
March 2025: INR 450 million) for loan availed by the subsidiary from bank and bank guarantees issued by the
subsidiary. Details of which are as follows:

# Impairment allowance of INR Nil (31st March 2025: INR 117.66 million) has been recognised during the year related
to loan receivable from related party and same is disclosed under "Impairment of financial and non-financial
assets" in note 35.

Impairment of amounts owed by related parties

As at 31st March 2026, the company has accumulated impairment of INR 12,049.04 million (31st March 2025: INR
12,647.09 million) against total gross amount owed by related parties of INR 13,740.49 million (31st March 2025: INR
15,434.87 million).

This assessment is undertaken each financial year through examining the financial position of the related party and
the market in which the related party operates.

Since investments in related parties are already disclosed in Note 5 of the financial statements, they are not
separately disclosed under this note.

F) Terms and conditions of transactions with related parties

1 Sales to related parties and concerned balances

Domestic sales are made to related parties on the same terms as applicable to third parties in an arm's
length transaction and in the ordinary course of business. The Company has same policy for deciding the
sales price for related parties & non-related parties. Sales are made on the basis of 15 days credit period.
Credit is extended to the specific trade parties only.

Export sales are made to related parties on the same terms as applicable to third parties in an arm's
length transaction and in the ordinary course of business. The sales prices negotiated with related and
non-related parties is based on white sugar prices prevailing in international markets (i.e., Intercontinental
Exchange [ICE]) and premium/discount on sales is mutually agreed between the parties based on
existing market conditions, terms of delivery and other factors. Payments are made in 100% cash against
submission of documents to the customer.

Trade receivables outstanding balances are unsecured, interest free and require settlement in cash. No
guarantee or other security has been received against these receivables. The amounts are recoverable
within 15 to 30 days from the reporting date (31st March 2025: 15 to 30 days from the reporting date). For
the year ended 31st March 2026, the Company has recorded impairment on trade receivables due from
related parties of INR Nil (31st March 2025: INR Nil).

2 Purchases of goods and services

Purchase of raw sugar: The Company purchases raw sugar from a related party at prices mutually
agreed upon. The base prices are linked to international raw sugar price prevailing on ICE along with
premium prevailing as per market circumstances and globally prevailing freight charges. This benchmark
reflects the cost-of-delivery (FOB) for shipments loaded onto vessels at the country of origin. To arrive
at the final contract price, adjustments are made to the ICE price to account for the sugar's polarization
level, applicable physical quality premiums, and pertinent futures-market spreads. These purchases
include a payment term of 120 to 180 days and interest is payable from the date as mutually agreed
between the parties in the contract but not earlier than date of bill of lading. The interest is charged at
6 months SOFR plus 2.5% per annum from the date of bill of lading to the date of repayment when funds
are received by the seller. The above trade balances are unsecured and company pays interest for the
credit period utilized by the company.

Technical services: The Service fee is charged in reference to nature of work performed, which is
mutually negotiated and agreed between transacting parties. Such procurement normally includes
payment terms requiring the Company to make payment within 30 to 45 days. The outstanding balances
are unsecured, interest free and require settlement in cash.

Sugar Software Licence & IT support services: The price is based on the International Price List agreed
by transacting parties for the number of users and the expenses are allocated on the basis of number of
user ID's utilized by the Company during the year. Such procurement normally includes payment terms
requiring the company to make payment within 30 to 45 days. The outstanding balances are unsecured,
interest free and require settlement in cash.

Purchase of Capital Goods & Capital Services: The Company purchases Capital goods & related capital
services from related party. The prices are based on the lowest price in quotations received from third
parties and related parties. Such procurement normally includes payments terms of 30 to 45 days and
retention of certain balances till the completion of project or a further period as per the agreement. The
outstanding balances are unsecured, interest free and require settlement in cash.

3 Services rendered to related parties/Rental income/Other Income

The Company has entered into a contract with related parties to provide project engineering consultancy
and advisory services, along with any other required services. The Company engages in these service
transactions with related parties at cost plus a markup. This markup is determined based on existing
mark-ups noted in market for such services of a similar nature, level or quality. Such procurement normally
includes payment terms requiring the Company to make payment within 30 to 45 days. The outstanding
balances are unsecured, interest free and require settlement in cash.

The Company has entered into contract with related party for leasing of space on rental basis on the
same terms as applicable to third parties in an arm's length transaction and in the ordinary course of
business. The company mutually negotiates and agrees the price with the related parties in a similar
manner as applicable to non-related parties. Such transactions normally include terms requiring the
company to make payment within 30 to 45 days. The outstanding balances are unsecured, interest free
and require settlement in cash.

Other income also include reimbursement of certain expenses incurred on behalf of related parties
which are recovered on cost basis.

4 Interest income on loans and advances

Interest is charged on the Loans given to related parties for meeting their working capital requirements
which is utilised by the related party for the purpose for which it was obtained. The loans are unsecured
and Interest is charged to related parties considering the average Interest rate on the loans taken by
the Company from third parties along with a mark-up for the loans being unsecured. The interest rate is
validated with market rates and updated on a periodic basis. Interest accrues on day to day balances
and is to be calculated on the basis of a year of 365 days. The interest is payable on an annual basis and
there is no delay noted in payment of interest by the subsidiary companies.

5 Loans & advance given

The loan given to Gokak Sugars Limited (GSL) during the year is unsecured and repayable in 120
months which includes a moratorium period of 12 months. The loan carries interest of 10% p.a which is
reviewed on a periodic basis. The loan was granted to GSL to support its working capital requirements.
As at 31st March 2026, the Company has impairment of INR 153.40 million (31st March 2025: INR 153.40
million) towards principal portion of loan receivable. The Company has recorded an impairment of INR
Nil (31st March 2025: INR 117.67 million) during the current year. The loans have been utilized by the
subsidiary for the purpose it was given.

The loan given to KBK Chem-Engineering Private Limited (KBK) was unsecured and repayable in 120
months which includes a moratorium period of 12 months. The loan carries interest at 10% p.a which was
reviewed on periodic basis and there was no change in the interest rate on loan during the year. As at
31st March 2026, the Company has impairment of INR Nil (31st March 2025: INR 598.05 million) towards
principal portion of loan receivable. The loans have been utilized by the subsidiaries for the purpose
it was given. During the year, there was conversion of outstanding loan given to KBK in to equity by
subscribing to rights issue of 249,122 shares of INR 100 each at a premium of INR 2,202.69 per share.

6 Advance against Purchases

Advance is given to related parties as per the terms of purchase contract. The advance given is adjusted
against the future goods/services purchased from the related party.

7 Interest on ECB Loan and commitment fees

The Company had taken External Commercial Borrowings (ECB) from its holding company in the financial
year 2020-21. The ECB was repayable after 60 months from the last drawdown date. The ECB was
secured by a first pari passu charge on all immovable & movable assets of the company. The holding
company charged interest at the rate of 6 month SOFR rate plus 3% p.a. and this interest was payable
every six months from the date of last drawdown of the ECB and the interest rate was reset every six
months based on 6-month SOFR on the reset date.

8 OTC (commodity derivative) transations

As per the Commodity Risk Management Policy approved by the Board, the Company had purchased
derivative products from Wilmar Sugar Pte. Ltd. based on prevailing market rates to hedge its
commodity price risk.

9 Guarantees given on behalf of related parties

The Company has provided guarantees on behalf of its subsidiary amounting to INR 450 million (31st
March 2025: INR 450 million) for performance bank guarantees issued by the subsidiary and working
capital loan availed by the subsidiary.

10 Guarantees given by related parties

The Company has obtained corporate guarantees from Wilmar International Limited of INR 46,006.63
million (31st March 2025: INR 51,247.03 million) towards term loans, external commercial borrowings and
working capital limits extended by banks/debentures issued to financial institutions.

11 Compensation to KMP of the Group

The amounts disclosed in the table are the amounts recognised as an expense during the financial year
related to Key Managerial Persons. Short term employee benefits include the compensation to the KMP's
alongwith the special allowances if any. Contribution to Provident Funds on behalf of the KMP's are
disclosed separately.

12 Loans & advance taken

The Company has taken Demand loan from KBK Chem-Engineering Private Limited (KBK) in the year
2025-26 to meet the working capital requirements. The loan has been utilized by the Company for the
purpose it was obtained. The loan is unsecured and carried interest rate of 5.60 % which is equal to the
prevailing yield of 52 week Government security closest to the tenor of the loan.

Note 42: Hedging activities and derivatives

During the year ended 31st March 2025, Company had refinanced External Commercial Borrowings from MUFG
bank. In addition to this foreign currency risk, the Company is also exposed to foreign currency risks related to
short term borrowings and trade payables which are related to its on-going business operations. The primary risks
managed using derivative instruments are foreign currency risk.

The risk management strategy and how it is applied to manage risk are explained in note 44.

Derivatives not designated as hedging instruments

The Company uses foreign exchange forward contracts to manage some of its transaction exposures. These foreign
exchange forward contracts are not designated as cash flow hedges and thus, these contracts are accounted as
financials instruments without hedge accounting.

Derivatives designated as hedging instruments
Cash flow hedges
Foreign currency risk:

Foreign exchange forward contracts are designated as hedging instruments in cash flow hedges of outstanding
ECB loan which has been denominated in USD.

There is an economic relationship between the hedged items and the hedging instruments as the terms of the
foreign exchange forward contracts match the terms of the hedged item. The Company has established a hedge
ratio of 1:1 for the hedging relationships as the underlying risk of the foreign exchange are identical to the hedged
risk components. To test the hedge effectiveness, the Company uses the hypothetical derivative method and
compares the changes in the fair value of the hedging instruments against the changes in fair value of the hedged
items attributable to the hedged risks.

Fair value of cash and short-term deposits, trade and other short term receivables, trade payables, other current
liabilities, short term loans from banks and other financial institutions approximate their carrying amounts. The fair
value are classified under Level 3 Fair value hierarchy.

The following methods and assumptions were used to estimate the fair values

Fair value of the unquoted equity shares of National Commodity Derivative Exchange Limited (NCDEX) at FVTOCI
has been estimated on the basis of market multiple method using the price to book value ratio of comparable
quoted investments, adjusted for certain significant unobservable inputs like company specific risk and discount
for lack of marketability.

The fair values of the Company's interest-bearing borrowings and loans are determined by using discounted cash
flow method using discount rate that reflects the issuer's borrowing rate as at the end of the reporting period. The
own non-performance risk as at 31st March 2026 was assessed to be insignificant.

The Company enters into derivative financial instruments with various counterparties, principally financial
institutions. Foreign exchange forward contracts are valued using valuation techniques, which employs the use of
market observable inputs. The most frequently applied valuation techniques include forward pricing, using present
value calculations. The models incorporate various inputs including the credit quality of counterparties and foreign
exchange spot and forward rates. There was no change observed in counterparty credit risk to have any material
effect on the hedge effectiveness assessment for derivatives designated in hedge relationships and other financial
instruments recognised at fair value.

The significant unobservable inputs used in the fair value measurement categorised within Level 3 of the fair
value hierarchy together with a quantitative sensitivity analysis as at 31st March 2026 and 31st March 2025 are
as shown below:

Note 44: Financial risk management objectives and policies

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

The Company is exposed to credit risk, liquidity risk and market risk. The Company's senior management oversees
the management of these risks and the appropriate financial risk governance framework for the Company. The
senior management provides assurance that the Company's financial risk activities are governed by appropriate
policies and procedures and that financial risks are identified, measured and managed in accordance with the
Company's policies and risk objectives. The Board of Directors review and agree for managing each of these risks.

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 three types of risk: interest rate risk, currency risk and other risks,
such as equity price risk and commodity price risk.

Foreign exchange exposure and risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of
changes in foreign exchange rates. The Company's exposure to the risk of changes in foreign exchange rates
relates primarily to the ECB loan of USD 300 million availed from MUFG bank and receivables and payables.

The Company manages its foreign currency risk for principal portion of ECB by hedging for period of 12 months.
When a derivative is entered into for the purpose of being a hedge, the Company negotiates the terms of those
derivatives to match the terms of the hedged exposure. For hedges of forecast transactions, the derivatives cover
the period of exposure from the point the cash flows of the transactions are forecasted up to the point of settlement
of the resulting receivable or payable against operating activities.

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market interest rates. The Company's exposure to the risk of changes in market interest rates relates
primarily to the Company's long-term debt obligations with floating interest rates.

The Company manages its interest risk by having a portfolio of fixed and variable rates of loans and borrowings
depending on market conditions, availability of appropriate fixed interest rates and expected future fluctuations
in interest rates.

Commodity price in sugar industry is impacted by multiple factors such as international sugar price, government
regulations, quantity of sugar production in the relevant period, etc. The Company has mitigated this risk by well
integrated business model by diversifying into co-generation and distillation, thereby utilizing the by-products. The
following table shows effect of changes in various commodity prices on the profit/(loss) and equity of the Company.

Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer
contract, thereby leading to a financial loss. The Company conduct thorough credit assessments before granting
credit terms and limits to customers, who are then monitored closely for adherence. Company's export sales are
executed against advance or receipt against submission of documents. The Company's domestic sugar sales are
primarily made to corporate customers, who are provided credit terms after thorough credit assessments and
thereby, credit default risk is not significant for these customers. Other domestic sugar sales are primarily made on
receipt of advance amount before goods are dispatched. Further, ethanol is sold to public sector undertakings and
power is supplied to corporations run by state government, thereby the credit default risk is significantly mitigated.

Trade receivables

Trade receivables are non-interest bearing and are generally on credit terms of 7 to 60 days.

An impairment analysis is performed at each reporting date on an individual basis for major customers. In addition, a
large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively.
The calculation is based on credit loss expected based on the ageing of receivable balances (which is formulated
based on past history of collections and business conditions combined). The Company evaluates the concentration
of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and industries
and operate in largely independent markets.

The ageing analysis of the receivables (net of expected credit loss) has been considered from the date the
invoice falls due.

Liquidity risk

The Company's objective is to maintain a balance between continuity of funding and flexibility through the
use of bank overdrafts, bank loans, debentures, financial support from parent, etc. The Company assessed the
concentration of risk with respect to refinancing its debt and concluded it to be low. The Company has access to a
sufficient variety of sources of funding and debt maturing within 12 months can be rolled over with existing lenders.

Note 45: Capital management

For the purpose of the Company's capital management, capital includes issued equity capital, securities premium
and all other equity reserves attributable to the equity shareholders of the Company. The primary objective of
Company's management is to maximise shareholder's value.

In order to achieve this overall objective, the Company's capital management, amongst other things, aims to
ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital
structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call
loans and borrowings. There have been no significant breaches in the financial and non financial covenants of any
interest-bearing loans and borrowing in the current period.

During the year, the loans given to subsidiaries were utilized by the subsidiaries for meeting their working
capital requirements.

b) Investments made are disclosed in note 5.

c) Corporate guarantees given by the Company are disclosed in note 38 (b). Corporate guarantee given is
utilized by the subsidiaries for availing working capital facility from bank and for issuance of performance
guarantee for projects undertaken by them.

Note 47: Leases

Company as a lessee

The Company has lease contracts for various land, building and plant. Leases of land have a lease term of 30 years
and 90 years, building generally 3 years and 5 years and plant 17 years and 30 years. The Company's obligations
under its leases are secured by the lessor's title to the leased assets. Generally, the Company is restricted from
assigning and subleasing the leased assets.

The Company also has certain leases of building and leases of office with lease terms of 12 months or less. The
Company applies the 'short-term lease' and 'lease of low-value assets' recognition exemptions for these leases.

Note 49: Other Statutory Information

(i) There are no proceedings initiated or are pending against the Company for holding any benami property
under the prohibition of Benami Property Transaction Act, 1988 and rules made thereunder.

(ii) The Company does not have any transactions with struck off companies as mentioned under Sec 248 of
Companies Act 2013 or Sec 560 of Companies Act 1956.

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

(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

(v) 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.

(vi) 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.

(vii) 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).

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

(ix) There were no Scheme of Arrangements which has been approved by the Competent Authority in terms of
sections 230 to 237 of the Companies Act, 2013, during the year.

Note 50: As per Ind AS 108 'Operating Segments' if a financial statement contains both standalone and consolidated
financial statements, segment information is required to be disclosed only in the consolidated financial statements.
Hence, the same is not given in standalone financial statement.

Note 51: The Company has used three accounting softwares for maintaining its books of account which has a
feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant
transactions recorded in the software, except:

In respect of first software, audit trail feature was not enabled for certain changes made using privileged/
administrative access rights throughout the year.

In respect of first and second software, audit trail feature was not enabled for direct changes to data when using
certain access rights, from 1st April 2025 to 11th December 2025.

In respect of third software which is a SaaS (Software as a Service) Product operated by a third party software
service provider, where certain features of audit trail has not been enabled throughout the year for direct changes
to data when using certain access rights.

Further, there were no instances of audit trail feature being tampered with, in respect of accounting softwares
where the audit trail has been enabled. Additionally, the audit trail of prior years for above referred softwares
has been preserved by the Company as per the statutory requirements for record retention to the extent it was
enabled and recorded in the respective year.

Note 51A: The Board of Directors, at its meeting held on 24th May 2022, approved the Scheme of Amalgamation
of wholly owned subsidiaries namely Monica Trading Private Limited (MTPL), Shree Renuka Agri Ventures Limited
(SRAVL), and Shree Renuka Tunaport Private Limited (SRTPL), with the Company. The Company had received the
approval of Mumbai Bench of NCLT for merger on 23rd July 2023 and the approval of the Bengaluru Bench on
22nd October 2024. The order became effective on 6th December 2024 and accordingly the effect of merger
was given during the previous year ended 31st March 2025. The assets and liabilities taken over in the merger are
detailed as below: