K) Provisions

Provisions are recognized 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 a provision
is expected to be reimbursed, the reimbursement is recognized 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 recognized as finance cost.

L) Contingencies

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by
the occurrence or non-occurrence of one or more uncertain future events beyond the control of the company
or a present obligation that is not recognized because it is not probable that an outflow of resources will be
required to settle the obligation. A contingent liability also arises where a reliable estimate of the amount
of the obligation cannot be made. Contingent assets are not recognized but are disclosed where an inflow
of economic benefits is probable. The estimation of financial effect in respect of contingent liabilities and
contingent assets wherever not practicable, is not disclosed and such fact is accordingly stated.

M) 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

All financial assets are recognized initially at fair value, plus in the case of financial assets not recorded
at fair value through profit or loss (FVTPL), transaction costs that are attributable to the acquisition of
the financial assets. However, trade receivables that do not contain a significant financing component
are measured at transaction price.

Subsequent Measurement

Financial assets presently held by the Company are classified as under:-

• Debt instruments at amortized cost

• Debt instruments, TDRs and derivatives at Fair Value Through Profit or Loss (FVTPL)

• Equity instruments measured at Fair Value Through Other Comprehensive Income (FVTOCI)

i. Debt Instruments at Amortized Cost

A 'debt instrument' is measured at the amortized cost if both of 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.

After initial measurement, such financial assets are subsequently measured at amortized
cost using the effective interest rate (EIR) method. Amortized cost is calculated by taking
into account any discount or premium on acquisition and fees or costs that are an integral
part of the EIR. The EIR amortization is included in finance income in the profit or loss.
The losses arising from impairment are recognized in the statement of profit or loss. This
category generally applies to trade and other receivables.

ii. Debt Instrument at FVTPL

FVTPL is a residual category for debt instruments. Any debt instrument, which does not meet
the criteria for categorization as at amortized cost or as FVTOCI, is classified as at FVTPL.

Debt instruments included within the FVTPL category are measured at fair value with all changes
recognized in the Statement of profit or loss.

iii. Equity Investments

All equity investments in scope of Ind AS 109 - Financial Instruments are measured at fair value.
Equity instruments which are held for trading are classified as at FVTPL. For all other equity
instruments, the Company may decide to classify the same as at FVTOCI. The Company makes
such election on an instrument-by-instrument basis upon on initial recognition and same is
irrevocable.

Upon classification of equity instruments as at FVTOCI, all fair value changes on the instrument,
excluding dividends, are recognized in the OCI. There is no recycling of the amounts from OCI
to Statement of Profit and Loss, even on sale of investments. The Company may transfer the
cumulative gain or loss within equity.

Equity instruments included within the FVTPL category are measured at fair value with all
changes recognized in the statement of profit or loss.

Investments in Joint ventures, subsidiaries and associates are recognized at cost in accordance
with Ind As 27. The carrying amount of such investments is assessed at the end of each financial
year for any indication of impairment. Where any such indication exists, the recoverable amount
of the investment is estimated and impairment loss, if any, is recognised in the statement of
Profit and Loss.

iv. Derivative Financial Instruments

The Company enters into a variety of derivative financial instruments to manage its exposure to
interest and foreign exchange rate risks, like foreign exchange forward contracts, interest rate
swaps and cross currency swaps.

Derivatives are initially recognized at fair value on the date the derivative contracts are entered
into and are subsequently re-measured to their fair value (Mark to Market) at the end of each
reporting period. The resulting gain or loss is recognized in the Statement of profit and loss.
Company does not designate any of its derivative instruments as hedge instruments. Derivatives
are carried as financial assets when fair value is positive and as financial liabilities when the fair
value is negative.

Transaction costs incurred for such derivative instruments are charged off to Statement of
Profit and Loss on initial recognition.

v. Transferable Development Rights (TDRs):

Transferable Development Rights (TDRs) acquired by the Company against surrender/handing
over of land to statutory authorities and intended for sale are recognized as Non-Current
Financial Assets/Investments when there is reasonable certainty of receipt and the fair value
can be reliably measured. Such TDRs are initially recognized at fair value based on observable
market inputs and are classified under the Fair Value Through Profit or Loss (FVTPL) category.
Accordingly, TDRs included within the FVTPL category are subsequently measured at fair value,
with all changes in fair value recognized in the Statement of Profit and Loss.

Derecognition

The Company derecognizes a financial asset only when the contractual rights to the cash flows

from the asset expires or it transfers the financial asset and substantially all the risks and
rewards of ownership 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 recognize the transferred asset to the extent of the Company's continuing involvement. In
that case, the Company also recognizes 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 AS109 - Financial Instruments, the Company applies Expected Credit
Loss (ECL) model for measurement and recognition of impairment loss on the following financial
assets and credit risk exposure:

i. Financial assets that are debt instruments, and are measured at amortised cost e.g., loans,
debt securities, deposits, trade receivables and bank balance

ii. Lease receivables

iii. 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 - Revenue From Contracts
with Customers.

iv. Financial guarantee contracts which are not measured as at FVTPL

Expected credit losses are the weighted average of credit losses with the respective risks of
default occurring as the weights. Credit loss is the difference between all contractual cash
flows that are due to the Company in accordance with the contract and all the cash flows
that the Company expects to receive (i.e. all cash shortfalls) discounted at the original
effective interest rate.

While estimating cash flows, Company considers all contractual terms of financial
instrument over the expected life of the financial instrument including cash flows from the
sale of collateral held that are integral to contractual terms.

In case of Trade receivables, the Company has used a practical expedient as permitted
under Ind AS 109 - Financial Instruments. This expected credit loss allowance is computed
based on a provision matrix which takes in account historical credit loss experience with
adjustments for collaterals available and forward looking information, if required.

ECL allowance is not recognized on Subsidy receivables since they are due from Government
of India and also on other receivables which are largely due from Government agencies, as
the Company does not perceive any risk of default which would be material.

For recognition of impairment loss on other financial assets and risk exposure, the Company
determines that whether there has been a significant increase in the credit risk since initial
recognition. If credit risk has not increased significantly, 12-month ECL is used to provide
for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used.
If, in a subsequent period, credit quality of the instrument improves such that there is no
longer a significant increase in credit risk since initial recognition, then the entity reverts to
recognising impairment loss allowance based on 12-month ECL.

ECL impairment loss allowance (or reversal) recognized during the period is recognized as
income/ expense in the Statement of Profit and Loss (P&L). This amount is reflected under

the head 'other expenses' in the P&L. The Balance Sheet presentation for various financial
instruments is described below:

• Financial assets measured as at amortised cost, trade receivables and lease receivables.

• ECL is presented as an allowance, i.e., as an integral part of the measurement of those
assets in the balance sheet.

• The allowance reduces the net carrying amount, until the asset meets write-off criteria.

• Trade receivables, other receivables, loans and advances are also fully provided for as
doubtful upon review on case to case basis, to the extent of such loss considered as
incurred.

b. Financial Liabilities

Initial Recognition and Measurement

Financial liabilities are classified, at initial recognition as loans and borrowings, payables, derivatives and
financial liabilities at fair value through profit or loss. The Company's financial liability consists of trade
and other payables, loans and borrowings, bank overdrafts, financial guarantee contracts and derivative
financial instruments.

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

Subsequent Measurement

The subsequent measurement of financial liabilities of the Company depending on their classification is
described below:-

i. Loans and Borrowings Including Bank Overdrafts

After initial recognition, interest-bearing loans and borrowings are subsequently measured at
amortized cost using the EIR method. Gains and losses are recognized in profit or loss when the
liabilities are derecognized as well as through the EIR amortization process.

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

This category generally applies to interest-bearing loans and borrowings.

ii. Financial Guarantee Contracts

Financial guarantee contracts issued by the Company are those contracts that require a payment to
be made to reimburse the holder of the guarantee for a loss it incurs because the specified debtor
fails to make a payment when due in accordance with the terms of a debt instrument. Financial
guarantee contracts are recognized initially as a liability at fair value, adjusted for transaction costs
that are directly attributable to the issuance of the guarantee. Subsequently, the liability is measured
at the higher of the amount of loss allowance determined as per impairment requirements of Ind AS
109- Financial Instruments and the amount recognized less cumulative amortization.

Derecognition

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 and loss.

N) Cash and cash equivalents

Cash and cash equivalents comprise of cash at banks and on hand and short-term deposits with a maturity
of three months or less. For the purpose of the cash flow statement, cash and cash equivalents include
cash on hand, in banks, demand deposits with banks and other short term highly liquid investments, net
of outstanding overdrafts that are repayable on demand and are considered part of the Company's cash
management system.

O) Government Grants

Government grants are not recognized until there is reasonable assurance that the Company will comply with
the conditions attaching to them and that the grants will be received.

Government grants are recognized in statement of profit and loss on a systematic basis over the periods in
which the Company recognizes as expenses the related costs for which the grants are intended to compensate
and are presented within other income.

Government grants that are receivable as compensation for expenses or losses already incurred or for the
purpose of giving immediate financial support to the Company with no future related costs are recognized in
profit or loss in the period in which they become receivable.

Government grants relating to purchase of property, plant and equipment are included in other non-current
liabilities and are credited to profit or loss on a straight-line basis over the expected lives of the related assets.

In the event of such property, plant and equipment being disposed off before completion of its estimated
useful life, the outstanding amount of such capital grant is fully credited to profit or loss in the year of its
disposal.

P) Employee Benefits

a. Short Term Employee Benefits:

All employee benefits payable within twelve months of rendering the service are classified as short term
employee benefits and they are recognized in the period in which the employee renders the related
service. The Company recognizes the undiscounted amount of short term employee benefits expected
to be paid in exchange for services rendered as a liability (accrued expense) after deducting any amount
already paid.

b. Retirement Benefit Costs and Termination Benefits and Other Long Term Employee Benefits
Defined Contribution Schemes

Payments to defined contribution retirement benefit plans are recognized as an expense when employees
have rendered service entitling them to the contributions.

Company's defined Contribution made to its Superannuation scheme is charged off to Statement of
Profit and Loss on accrual basis.

Defined Benefit Plans

Provident Fund

Contribution to Provident Fund is accounted for on accrual basis as per actuarial valuation done on
deterministic basis. The Provident Fund contributions are made to a Trust administered by the Company
by both the employer as well as employee. The Trust invests in specific designated instruments as
permitted by Indian Law. The interest rate payable to the members of the Trust is being administered
by the Government. The Company has an obligation to make good the shortfall, if any between the
return from the investments of the Trust and the notified interest rate. Further in the event there is a
deficit, owing to the fair valuation of plan assets being lower than defined benefit obligation at the
Balance Sheet date, Company has to fund the shortfall. Such shortfall including shortfall in the interest
is recognized in the Statement of Profit and Loss.

Gratuity and Post-retirement Medical Benefits

For Defined Benefit plans comprising of gratuity, post-retirement medical benefits the cost of providing
benefits is determined using the Projected Unit Credit Method, with actuarial valuations being carried
out at the end of each annual reporting period. Re-measurements, comprising actuarial gains and losses,
the effect of the changes to the asset ceiling (if applicable) and the return on plan assets (excluding
net interest), is reflected immediately in the balance sheet with a charge or credit recognized in
other comprehensive income in the period in which they occur. Re-measurements recognized in other
comprehensive income is reflected immediately in retained earnings and is not reclassified to profit or
loss. Past service cost is recognized in profit or loss in the period of a plan amendment. Net interest is
calculated by applying the discount rate at the beginning of the period to the net defined benefit liability
or asset. Defined benefit costs are categorized as follows:

• Service cost (including current service cost, past service cost, as well as gains and losses on
curtailments and settlements);

• Net interest expenses or income; and

• Re-measurements

The Company presents the first two components of defined benefit costs in the Statement of profit and
loss in the line item 'Employee Benefits Expense'. Curtailment gains and losses are accounted for as past
service costs.

The retirement benefit obligation recognized in the balance sheet represents the actual deficit or surplus
in the Company's defined benefit plans. Any surplus resulting from this calculation is limited to the
present value of any economic benefits available in the form of refunds from the plans or reductions in
future contributions to the plans.

The cost of the defined benefit gratuity plan and other Post employment medical benefits and the present
value of gratuity obligation are determined using actuarial valuation techniques.

Termination Benefits

A liability for a termination benefit is recognized at the earlier of when the entity can no longer withdraw
the offer of the termination benefit and when the entity recognizes any related restructuring costs.

Other Long term benefits

Liabilities recognized in respect of other long term benefits like leave encashment and long term service
awards are measured at the present value of the estimated future cash outflows to be made by the
Company (based on actuarial valuation) in respect of services provided by employees upto the reporting
date.

IV) Other Significant Accounting Policies:

A) Current versus non-current classification

The Company presents assets and liabilities in the balance sheet based on current/ non-current classification.
An asset 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

• Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least
twelve months after the reporting period.

All other assets are classified as non-current.

The classification of an asset either current or non-current has been made applying the criteria of
realization of such assets within a period of 12 months after the reporting date.

Where assets have been fully provided for as doubtful, the same are classified as non-current.

A liability is current when:

• It is expected to be settled in normal operating cycle,

• It is held primarily for the purpose of trading,

• It is due to be settled 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.

B) Foreign Currencies

The standalone financial statements are presented in Indian Rupees ('), which is also the Company's functional
currency.

a. Transactions and Balances

Foreign Currency transactions are accounted at the rates prevailing on the date of transaction. Year-end
monetary assets and liabilities are translated at the exchange rate prevailing on the date of the Balance
sheet.

Exchange differences arising on settlement or translation of monetary items are recognized in Statement
of Profit and loss for the period in which they arise, except for the following:-

• Exchange differences on Long term foreign currency borrowings relating to assets under construction
for future productive use (i.e. Capital Work in progress), are included in the cost of those assets
when they are regarded as an adjustment on account of interest costs on those foreign currency
borrowings.

• Non-monetary items that are measured in terms of historical cost in foreign currencies are reported
using the exchange rates at the date of the transaction.

C) Interest Income

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

For interest due from customers, vendor's etc. interest income is recognized when no significant uncertainty
as to its realization exists and is accounted on time proportion basis at contracted rates.

D) Dividends

Dividend income is recognized when the Company's right to receive the payment is established.

E) Commission Income

For certain arrangements, Company acts as an agent. The role of the Company either as an agent or a
principal is determined based on evaluation of its role as a primary obligor, has the pricing latitude in the said
arrangements, its exposure to inventory risks and credit risks, on case to case basis. Commission income is
recognized as per the terms of agreement when such amounts become entitled.

F) Others

Insurance and other miscellaneous claims are recognized on receipt/acceptance of claim.

Income from sale of Certified Emissions Reductions (CER's), Voluntary Emissions Reductions (VER's) and

Renewable Energy Certificates (REC's) is recognized on delivery and confirmation of the same by the concerned
authorities.

G) Company as a Lessor

Leases in which the Company does not transfer substantially all the risks and rewards of ownership of an
asset are classified as operating leases. Rental income from operating leases are recognised on straight line
basis as per lease terms over the period of lease. Initial direct costs incurred in negotiating and arranging
an operating lease are added to the carrying amount of the lease asset and recognised over the lease term.
Contingent rents are recognised as revenue in the period in which they are earned.

Leases are classified as finance leases when substantially all of the risks and rewards of ownership transfer
from the Company to the lessee. Amounts due from lessees under finance leases are recorded as receivables
at the Company's net investment in the leases.

Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on
the net investment outstanding in respect of the lease.

H) Non - Current Assets Held for Sale

Non-current assets and disposal groups are classified as held for sale if their carrying amount will be recovered
principally through a sale transaction rather than through continuing use. Non-current assets (and disposal
groups) classified as held for sale are measured at the lower of their carrying amount and fair value less costs
to sell. Also, such assets are classified as held for sale only if the management expects to complete the sale
within one year from the date of classification.

I) Segment Reporting

The Company has recognized the following operating segments, viz Fertilizers, Industrial Chemicals and
Trading, the business activities it is primarily engaged into. The same has been done based on the review of
the operating results, internal reporting, review of performance, decision making relating to future allocation
of resources, policy parameters influencing business etc. carried out by its Chief Operating Decision Maker i.e.
Executive Management Committee/Board of Directors.

J) Prepaid Expenses

Individual expenses up to ' 1,00,000 is not considered in classifying prepaid expenses.

K) Research and Developments expenses

Revenue expenditure on Research activity is recognized separately and charged to Statement of Profit and
Loss. Expenditure on development activities is capitalized when its future economic benefits can reasonably
be regarded as assured.

L) Earnings per Share (EPS)

Basic earnings per share is calculated by dividing net profit or loss after tax for the year attributable to equity
shareholders by the weighted average number of equity shares outstanding during the year.

Upon discontinuation of an operation the basic and diluted amount per share for the discontinued operation
is separately reported, as applicable.

M) Cash Dividend

Final dividends on equity shares are recognized as a liability in the financial statements in the period in which
they are approved by the shareholders. Interim dividends are recognized as a liability in the period in which
they are approved by the Board of Directors. The corresponding amount of dividend is recognized directly in
retained earnings / reserves and surplus.

N) Supplier Finance Arrangements

The Company enters into supplier finance arrangements for transactions routed through Trade Receivables
Discounting System (TReDS) for financing of trade receivables of Micro, Small and Medium Enterprises
(MSMEs). Under these arrangement, suppliers upload invoices on the TReDS platform which, upon acceptance
by the Company, may be discounted by financiers. The Company settles the amount directly with the financier

on the respective due dates. Liabilities arising under such arrangements are recognized and presented as
trade payables, as they are settled within the normal operating cycle of the Company

The Company also enters into Usance Payable at Sight Letters of Credit (UPAS LC) arrangements, whereby
financial institutions settle amounts payable to suppliers on behalf of the Company, and the Company
subsequently repays the financial institution in accordance with the agreed terms. Where the terms of such
arrangements result in a substantial modification of the liability, including significant extension of credit
period or change in substance of the liability, the same is reclassified and presented as borrowings.

V) Exemptions applied

Ind AS101- First Time Adoption of Indian Accounting Standards, allows first-time adopters certain exemptions
from the retrospective application of certain requirements under Ind AS. The Company has applied the following
exemptions.

Company has elected to continue with the carrying value for all of its property, plant and equipment as recognized
in the financial statements as at the date of transition measured as per Indian GAAP and use that as its deemed
cost as at date of transition. The same is applicable even for Investment property, intangible assets and its
investments in Joint venture, associates and subsidiaries.

Company has also reviewed the necessary adjustments required to be done in accordance with paragraph D21 this
standard (i.e. adjustments arising on account of decommissioning or restoration liabilities) and has accordingly
considered the impact of the same wherever applicable.

The Company has designated unquoted equity instruments held at 1 April 2015 as fair value through OCI.

VI) Recent Pronouncements:

The Ministry of Corporate Affairs (MCA) on 13th August 2025 through Companies (Indian Accounting Standards)
Amendment Rules, 2023 has notified the following amendments to IND AS which are applicable for the annual
periods beginning on or after 1st April, 2025.

(i) Ind AS 21 - The Effects of Changes in Foreign Exchange Rate - Provides guidance to specify when a currency
is exchangeable and how to determine the exchange rate when it is not exchangeable and requirement of
additional disclosures for the same.

(ii) Ind AS 1 - Presentation of Financial Statements - specify the requirements for classifying liabilities as current
or non-current and additional disclosure requirements regarding loan agreement.

(iii) Ind AS 7- Statement of Cash Flows and Ind AS 107 Financial Instruments - Clarification on the characteristics
of supplier finance arrangements and disclosure requirements of such arrangements.

(iv) Ind AS 12 - Income Taxes - New paras added for applicability of income tax arising from implementation of
Pillar Two model rules and certain related disclosures.

(v) Certain minor clarificatory amendments have been made to Ind AS 101, IND AS 108, IND AS 109, IND AS 115,
IND AS 10, IND AS 28 and IND AS 32.

The Company has reviewed the new pronouncements and based on its evaluation has determined that it does not
have any material impact on its financial statements.

42.2 Out of the above '36.46 crores, demand of '33.48 crore raised by Municipal Corporation of Greater Mumbai
(BMC) towards additional sewerage charges levied from 05.04.1987 are disputed by the Company in a Writ
Petition filed in Bombay High Court. The Honorable High Court vide its interim Order dated 10-11-92 has granted
stay on recovery of the demand for the period up to the date of the Order and directed the Company to pay
sewerage charges from the date of the order which is being paid by the Company. The matter has been disposed
off by the High Court and the Company approached Supreme Court. Supreme Court has directed the Bombay
High Court to hear the matter and decide on merits based on facts of the case. The Stay granted on the said
matter continues.

As a part of an agreement entered into with BMC for obtaining raw sewerage, the Company has paid an interest
free deposit of '16.00 crore to BMC representing approximately 50% of the disputed demand which would be
adjustable against the disputed demand in case the Court rules in favor of BMC. No provision is considered
necessary for the disputed demand of '33.48 crore as the claim of BMC is not tenable.

42.3 The amount of claims in respect of legal cases filed against the Company for labour matters relating to regular
employees and not acknowledged as debts is not ascertainable and hence no provision is made. However, with
respect to matter relating to payment of overtime wages, a stay order has been obtained by the Company
from High Court, pending disposal with submission of Bank guarantee amounting to '12.00 Crore. Considering
the merits, the company is of the view that there is no provision required and as the amount of claim is not
ascertainable, not included under contingent liability.

42.4 Owing to non-compliance of Corporate Governance requirements as mandated by SEBI, with reference to
composition of Independent Directors in the Board, the Company is in receipt of notice of penalty aggregating
to '1.74 crore (P.Y. '1.30 Crore) for a period December 2021 to December 2025 from the stock exchanges (BSE
& NSE). Since the appointment of Directors is done by Government of India, the Company has approached its
Administrative Ministry for ensuring the compliance.

Further, the Company is in receipt of notice of penalty aggregating to '0.59 crore (P.Y. '0.33 Crore) from the
stock exchanges (BSE & NSE) for a period December 2021 to December 2025 for non-compliance of composition
of the Audit Committee in line with Regulation 18, Nomination and Remuneration Committee in line with
Regulation 19, Stakeholders Relationship Committee in line with Regulation 20, Risk Management Committee in
line with Regulation 21 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The Company has represented to the stock exchanges for waiver of the aforesaid penalty and considering
precedents in similar matters where waiver has been granted by exchanges, the Company is confident of
favorable resolution. Accordingly, it is not included in contingent liability.

44. Wagons leased to Indian Railways "Under Own your Wagons Scheme"

The lease agreement with Railways under the Own Your Wagon Scheme expired in FY 2019-20. Subsequently,
Railways communicated that the wagons covered under the Scheme are to be returned to the investors, and
that no further (tertiary) agreement will be executed for such wagons. Railways has also provided an option to
the investors either to dispose of the wagons independently or through Railways. In cases where the disposal
in undertaken by Railways, the sale proceeds, net of deducting departmental charges @12.5% of the total sale
value as per extant codal provisions, would be remitted to the investors upon completion of disposal. Further,
until completion of the disposal process, Railway shall continue to pay lease charges to the investors.

Pending finalization of the above process, the Company has recognized lease income of ' 0.35 crore during the
year (PY ' 0.35 crore), based on an estimate of minimum lease rentals expected to be realized. Lease rentals
aggregating to approximately ' 3.36 crore relating to the period subsequent to expiry of the agreement remain
outstanding. The Company believes that the same is recoverable considering the ongoing correspondence with
Railways. The Company is regularly following up with Railways and considers the lease income during the year
to be reasonable. The said arrangement continues to be treated as Short-term Operating Lease.

45. Formalities relating to transfer of certain immovable and other properties situated at Trombay Unit, from
Fertilizer Corporation of India Limited to the Company on reorganization of the former in 1978 are not yet
completed. Out of property cards for a total area of 30,42,108 Sq. meters (P.Y. 30,42,108 Sq. meters), property
cards for 3,55,060.22 Sq. meters (P.Y. 3,75,826 Sq. meters) are yet to be transferred in the name of the Company.
The Company is in the process of obtaining transfer of title deeds in its favour.

Out of total area of 50,52,476 Sq. meters' area at Thal Unit, the title deeds relating to area of 32,27,573 Sq.
meters (P.Y. 32,27,573 Sq. meters) area are in the name of the Company. The balance title deeds w.r.t 18,24,903
Sq meter of land are in the process of being transferred in the name of the Company. Freehold land at Thal Unit
includes land at Kihim having carrying cost of '0.02 crore, pending execution of documents and transfer of title
deeds in the name of the Company, due to dispute.

46. In respect of immovable properties other than land i.e. buildings and other structures, situated at its Trombay
and Thal units they are self-constructed properties on the land owned by the Company as evidenced by property
cards/title deeds of land.

The Company asserts that all these properties are its own and has clear title to the same since such properties
are self-constructed on the Company's land, although no separate title documents for self-constructed properties
are readily available. The Company has obtained opinion to that effect from the legal and regulatory experts on
land matters and also has other documentary evidence in that regard.

The Company had come into existence in 1978 as a result of Government of India reorganizing Fertilizer
Corporation of India Ltd. and National Fertilizers Ltd. Consequent to the same, major portion of immovable assets
at its Trombay unit became vested with the Company. In case of Thal unit, such properties on the Company's
land were erected over the years following land acquisition effected around 1978. Thus records pertaining to
self-constructed properties are not readily available since they date back to more than 45 years. The Company

47. Balance of subsidy receivables includes certain amounts receivable from Government recognized on estimated
basis and are subject to confirmation.

48. In FY 2022-23, the Company was in receipt of debit note from Gail India Ltd. towards pooled price differential,
worked out on an annual basis for the year 2021-22. As per the same, the Company is required to contribute
additionally to the pool account. It has been observed that the differential has been arrived at by substituting
EPMC gas meant for Urea Operations with cheaper market price gases specifically contracted by the Company
for non-urea operations.

Similarly, as per Department of Fertilizer's (DoF) directives during the year 2022-23, the Company had sourced
Spot gas for its urea operations in lieu of gas sourced under the EPMC mechanism which also has not been
considered in the pool price and was substituted with cheaper market price gases specifically contracted by the
Company for non-urea operations resulting in additional contribution to the pool account.

The Company is of the view that EPMC gas / Spot gas is specifically meant for urea operations and thus needs
to be subsumed in arriving at the final pool price and the same should be considered in the subsidy of urea, since
the cost of gas is a pass through. The matter has been represented to DoF.

As the non-recognition of such EPMC Gas / Spot gas sourced as per DoF's directives for Urea Operations is not
in accordance with the principles of gas pooling mechanism, the Company has continued to recognize such
differential i.e. (EPMC / Spot gas price - Cheaper market gas price) amounting to ' 80.57 crore cumulatively till
March 2026 from FY 2021-22 to 2023-24 which has been shown as receivable from DoF.

Further, Company has disputed the demand of ' 52.18 crore raised by GAIL towards pool price differential as
against receivable of ' 71.39 crore for FY 22-23 which has been arrived at on account of non-recognition of
EPMC gas/Spot gas in Urea by FICC by substituting EPMC gas/Spot gas with cheaper RLNG gas sourced for non¬
urea operations. The total disputed amount for the year 2022-23 stands at ' 123.57 crore. Based on Company's
representation, DoF/FICC has directed GAIL and stated the said matter is under examination by DoF.

49. The Company is eligible to receive subsidy from Fertilizer Industry Co-Ordination Committee (FICC) / Department
of Fertilizers (DOF) on Urea, Phosphatic and Potassic (P & K) Fertilizers at the rates notified from time to time.

Subsidy is further adjusted for escalations/de-escalations in the cost of inputs and other costs, as estimated by
the management based on the prescribed norms in line with known policy parameters. Accordingly, the subsidy
adjusted on account of this escalations/de-escalations basis for the year amounts to '254.39 crore refundable
to FICC/DOF (PY '247.88 crore refundable).

Upon introduction of Direct Benefit Transfer (DBT) schemes for all Fertilizer Companies, there is shift in procedure
for generation of subsidy claims with respect to Price subsidy & disbursement thereon. As per the same, Company
is entitled for generation of claims/receipt of subsidy on the basis of actual sale by the retailers on weekly basis
through POS machines. Accordingly, as on 31.03.2026, quantity of 8.23 LMT of urea and P&K having subsidy
amounting '1920.25 Crore has been recognized in the current period, as such quantity has been sold to dealers
but the payment of the same will become due under DBT on actual sale by the retailers through POS machines.
(P.Y quantity 5.77 LMT and subsidy '1416.46 crore).

50. Department of Fertilizers (DoF), vide letter No. F.21-01/2023-FM dated 21st September, 2023 issued to Fertilizer
CPSEs and subsequently vide letter No. F.21-01/2023-FM dated 08th February, 2024 issued to the Company, had
directed ensuring availability of Phosphatic and Potassic (P&K) fertilizers during Rabi 2023-24 by undertaking
procurement on priority basis, with the assurance that any price adversity arising on such procurements beyond
the applicable Nutrient Based Subsidy (NBS) rates would be addressed by DoF on a "No Profit No Loss" basis.
Further, DoF vide File No. 21-01/2023-FM-Part (1) dated 29th May, 2024 also allowed consideration of price
adversity beyond applicable NBS rates in respect of unsold inventory and sales pending acknowledgment
in PoS by farmers as on 30th September, 2023. Based on the aforesaid directions/guidelines, the Company
had recognized differential subsidy claims up to 31st March, 2025. Against the above provision, an amount of
' 217.50 crore remains outstanding as on 31st March, 2026 and is pending for settlement/approval by DoF.

Further, additional imports of DAP were also undertaken as per the directives of DOF with assurance vide letter
no.21-01/2023-FM dated 12th June 2024 and letter no.21-2/2022-FM(PT) dated 20th August 2024 that the
relevant issues will be suitably addressed. Subsequently, DoF vide letter no.23011/124/2024-P & K dated 23rd
September 2024 announced an additional one-time package of '3500 PMT on DAP over and above the subsidy
under NBS scheme.

Based on the aforesaid directions/guidelines, the Company had recognized differential subsidy claims up to
31st March, 2025. Against the above provision, an amount of '0.68 crore remains outstanding as on 31st March,
2026 and is pending for settlement/approval by DoF.

Further, the Department of Fertilizers (DoF), vide F.No.23011/5/2025-P&K dated 30th April 2025 for Kharif
2025 and F.No.23011/12/2025-P&K (P) dated 05.01.2026 for Rabi 2025-26, issued operational guidelines for
implementation of various provisions over and above the approved Nutrient Based Subsidy (NBS) rates. Such
additional compensation is applicable in respect of DAP and TSP shipments arriving during the period from
01st April 2025 to 31st March 2026. The additional compensation includes: (i) adjustment for advantage/
disadvantage arising due to upward/downward trends in international market prices, wherein actual import
cost (CFR) and customs duty are allowed, (ii) reimbursement of "Other Cost" @ '3,500 PMT or actual applicable
expenses, whichever is lower, (iii) reimbursement of GST component included in the MRP, and (iv) reasonable
return @ 4% of Net MRP (MRP less GST). Based on the said guidelines, the Company has recognized income of
'928.40 crore on an estimated basis during the current period, out of which claims amounting to '630.46 crore
are outstanding.

51. On 20th and 22nd March, 2019 respectively, both the Gas Turbine Generator (GTG) plants at Thal unit stopped
operating. Upon failure, the matter was taken up with the LSTK contractor who had supplied the turbines, for
repair, as the same were covered under warranties. The matter was referred by the LSTK contractor for repairs
to the Original Equipment Manufacturer (OEM) who had indicated a total estimated expenditure of about 98
million SEK ('74.51 crore excluding taxes and duties).

As the equipment's are covered under warranties, the Company is of the view that no additional costs would
devolve on the Company. Further the Company had initiated arbitration proceedings towards the LSTK contractor
citing loss of profits owing to higher energy costs, higher maintenance costs etc. In response, counterclaims have
been made by the LSTK contractor and the award was received in favour of the Company.

The LSTK contractor challenged the arbitral award before the Hon'ble Bombay High Court. In compliance with
the Court's directions, LSTK contractor deposited an amount of ' 218.46 crore with RCF. As per the terms of the
order, in the event the petition was allowed, RCF was obligated to refund the amount along with interest at 6%
per annum or as directed by the Court.

During the year, the Hon'ble Bombay High Court, vide its order, directed RCF to refund the entire deposited
amount along with interest at 6% per annum and granted the Company four weeks' time to avail appropriate
legal remedy against the said order.

Subsequently, RCF filed a Special Leave Petition (SLP) before the Hon'ble Supreme Court against the aforesaid
order. The Hon'ble Supreme Court disposed of the SLP, directing RCF to make payment within a period of four
weeks to LSTK contractor. Accordingly, RCF refunded the amount of ' 250.08 crore including interest of '. 31.62
crore which is charged to profit and loss as Finance Cost during current period.

Further, RCF has filed an Appeal under Section 37 of the Arbitration and Conciliation Act, 1996, against the order
of the Hon'ble Bombay High Court. The matter has been partly heard and is pending adjudication before the
Hon'ble High Court.

52. Company had surrendered land of 48,849.74 sq. meters to MMRDA for construction of Anik Panjarapole Link
Road in February 2012 towards which it was entitled to receive TDRs to the extent of land surrendered. Out of
which land of 8,265 sq. meters was unencumbered and balance land of 40,584.74 Sq meters was encumbered.
Company was in receipt of TDR of 16,530 sq meters in 2017 from MCGM (2 times the unencumbered land).
Further in accordance with Development Control Regulation of Greater Mumbai, 1991, Company has also
recognized additional TDR credit, being 20% bonus on the unencumbered land surrendered (8265 sq. meters X
20% = 1653 sq meters).

For remaining 40,584.74 sq. meters of encumbered land, the Company has recognized additional TDR credit
receivables of 10,146 sq. meters (40,584.74 sq. meters X 25% = 10,146 sq. meters) in accordance with regulation
34 of Development Control Regulation 1991 of Greater Bombay as recommended by MMRDA.

The Company has received a Letter of Intent (LOI) No. Ch.E/D.P/31828/TDR dated 27th March 2026 from the
Municipal Corporation of Greater Mumbai (MCGM) for grant of Transferable Development Rights (TDR)/Floor
Space Index (FSI) against surrender of land admeasuring 7,435.96 sq. m., comprising land reserved for two
gardens/parks and a community center (7,104 sq. m.) and road setback area (331.96 sq. m.) situated at Village
Maravali, M/E Ward, Mumbai.

In accordance with Regulation 32 of the Development Control and Promotion Regulations (DCPR) 2034,
Company is entitled to receive TDR/FSI equivalent to twice (7435.96 Sq.m X 2 =14871.92 Sq.m) the area of land
surrendered in respect of reserved/designated land and road set back. Accordingly, Company has recognized
TDR aggregating to 14,539.96 sq.m comprising 14,208 sq. m. against reservations/ designations and 331.96 sq.
m. against road setback land. TDR's aggregating to 14,539.96 sq.m are intended for sale in the open market,
while the balance 331.96 sq. m. pertaining to road setback area is proposed to be utilized as FSI for construction
of residential quarters for employees.

NOTE NO. 53| DISCLOSURES RELATING TO IMPAIRMENT OF NON-FINANCIAL ASSETS:

Company has carried out impairment testing of its Cash Generating Units (CGU) which is carried out considering an
estimated useful life of 10 Years for arriving at the value in use. In determining value in use for the CGU, the cash flows
were discounted at a rate of 8.00% PA (PY 8.00% PA) on pre-tax basis.

The status of provision made towards impairment is as under: -

Higher raw material prices coupled with steep fall in realizations warranted in carrying out a review of the recoverable
amount of the said plants and related equipment's resulting in provision towards impairment.

Key assumptions based on which recoverable amount is most sensitive.

The calculation of value in use for the identified CGU is most sensitive to the following assumptions.

1. Selling Prices

The extant selling prices are considered for forecasting cash flow estimates for arriving at the value in use. The
selling prices are assumed to be kept constant in future year projections.

2. Discount Rate

Discount rate is estimated considering the entity's incremental borrowing rate which is arrived at considering
the present debt structure etc.

3. Sales Quantity

The sales projections have been worked out considering the present demand scenario and the operating
capacities of the plants.

4. Raw Material Prices - Considering current prices of raw materials.

The estimates of cash flows are done considering current raw material prices at the reporting date and the same
are assumed to be remain constant in the future year projections as any increase in the same is expected to be
passed on to the market.

54. Inventory includes stores and spares declared as surplus with further classification as disposable surplus. Since
such surplus stores on disposal may not fetch full book value a suitable provision has been made. Consequent
to full provision for impairment made in respect of plants referred in note no. 53, Company has also provided
towards inventory of specific spares relating to the said plants. The value of such inventory and provision
towards the same is as under: -

# The shareholding is subject to change depending on the final value of the assets transferred by The Fertilizer Corporation
of India Limited to Talcher Fertilizers Ltd.

National Company Law Tribunal (NCLT) proceedings were initiated against FACT-RCF Building Products Limited
(FRBL), a joint venture of RCF and FACT, vide order dated January 11, 2024. Pursuant to the Corporate Insolvency
Resolution Process (CIRP) initiated against FRBL under the Insolvency and Bankruptcy Code, 2016, the Hon'ble
NCLT, Kochi Bench, vide order dated September 26, 2025, approved the Resolution Plan.

As per the approved Resolution Plan, the claims submitted by the Company as unsecured financial and operational
creditor amounting to '37.87 crore were not considered for settlement and accordingly stand extinguished.
Further, under the Resolution Plan, the Company was allotted 2,50,000 equity shares of '10 each aggregating
to '25 lakh, resulting in a revised shareholding of 2.5% in the restructured share capital of FRBL.

The Company had already made full provision for its investment of '35.23 crore and advances of '37.87 crore,
aggregating to '73.10 crore, in earlier years. Accordingly, during the year, the Company has written off investment
and advances aggregating to '72.85 crore (net of 2,50,000 equity shares of '10 each aggregating to '25 lakh
received under the approved Resolution Plan) pertaining to FRBL and recognised the aforesaid equity shares in
its books of account as at March 31, 2026. Consequent to the restructuring, the Company holds 2.5% equity in
the revised share capital of FRBL and accordingly, FRBL has ceased to be a related party of the Company.

57.2 Transactions with other entities- where Directors are interested:
a) Name of the entity & transactions

(i) Fertilisers and Chemicals Travancore Limited (FACT) - Owing to Shri S. C. Mudgerikar ,CMD holding
additional charge as Chairman & Managing Director of FACT as per directives of DoF upto 31st
December 2025.

57.4 Transaction with other Government related Entities

In the ordinary course of its business, the Company enters into transactions with other Government controlled
entities. The Company has transactions with other Government-controlled entities, including but not limited to
the following:

• Purchase of Gas, Raw Materials/Finished Goods;

• Purchase of Assets/Spare parts from Original equipment manufacturers (OEMs);

• Sale of Industrial chemicals;

• Rendering and receiving of services;

These transactions are conducted in the ordinary course of business on terms comparable to those with other
entities that are not government controlled entities.

National Company Law Tribunal (NCLT) proceedings were initiated against FACT-RCF Building Products Limited
(FRBL), a joint venture of RCF and FACT, vide order dated January 11, 2024. Pursuant to the Corporate Insolvency
Resolution Process (CIRP) initiated against FRBL under the Insolvency and Bankruptcy Code, 2016, the Hon'ble
NCLT, Kochi Bench, vide order dated September 26, 2025, approved the Resolution Plan.

As per the approved Resolution Plan, the claims submitted by the Company as unsecured financial and operational
creditor amounting to '37.87 crore were not considered for settlement and accordingly stand extinguished.
Further, under the Resolution Plan, the Company was allotted 2,50,000 equity shares of '10 each aggregating
to '25 lakh, resulting in a revised shareholding of 2.5% in the restructured share capital of FRBL.

The Company had already made full provision for its investment of '35.23 crore and advances of '37.87
crore, aggregating to '73.10 crore, in earlier years. Accordingly, during the year, the Company has written off
investment and advances aggregating to '72.85 crore (net of 2,50,000 equity shares of '10 each aggregating to
'25 lakh received under the approved Resolution Plan) pertaining to FRBL and recognized the aforesaid equity
shares in its books of account as at March 31, 2026. Consequent to the restructuring, the Company holds 2.5%
equity in the revised share capital of FRBL. As Promoter Companies have lost the powers to exercise control of
the Joint Venture and accordingly, the financials of FRBL is not consolidated in accordance with Ind AS 110.

B) URVARAK VIDESH LTD:- A joint venture with National Fertilizers Ltd. and KRIBHCO for revival of closed Fertilizer
Units of FCI/HFC group of companies has been formed. Further URVARAK VIDESH LTD. (UVL) has been declared
as Dormant Company on 04.11.2015 by Registrar of Companies, New Delhi.

The required disclosure under Ind AS 19 Employee Benefits is given below.

General Description of Defined Benefit Plan

1) Provident Fund: -

a) The Provident Fund contributions are made to a Trust administered by the Company. The interest rate
payable to the members of the Trust shall not be lower than statutory rate of interest declared by the
Central Government under the Employees Provident Funds and Miscellaneous Provisions Act, 1952.

During the year an amount of '46.37 crore (P.Y. '30.79 crore) has been charged off to statement of profit
and loss towards contribution by the Company.

b) As per Ind AS 19 Employee Benefits, for Defined Benefit plans, the Company is required to ascertain the
present value of the defined benefit obligation and compare with the fair value of the Plan assets to
determine the surplus or deficit, if any, as at Balance Sheet date. Deficit, if any, needs to be accounted in
the books of the Company. For FY 2025-26, PF Trust accounts are yet to be finalized. Based on Management
Certified Accounts , upon review of fair value plan assets as compared to present value of the defined benefit
obligation, the deficit stands to '10.00 crore as at 31.03.2026. Accordingly, the Company had recognized a
liability of '10.00 crore as at 31.03.2026 (P.Y. '4.00 crore reversal of provision).

c) Provision on account of interest shortfall determined through actuarial valuation has been recognized
amounting to '4.40 crore (PY '3.72 Crore) in statement of Profit and Loss and due to Actuarial Gains,
reversal of provision has been recognized amounting to '24.17 crore (PY '3.40 crore) in Other Comprehensive
Income respectively.

2) Gratuity: -

The Company operates gratuity plan wherein every employee is entitled to the benefit equivalent to fifteen days'
salary last drawn for each completed year of service depending upon the date of joining the same is payable on
death, separation from service, or retirement, whichever is earlier. The benefit vests after five years of continuous
service. During the year, the charge/ (Reversal) on account of Gratuity to Statement of Profit and Loss (including
other comprehensive income/expense) is ' (13.78) crore (PY ' 35.09 crore).

3) Leave Encashment: -

The Company has been accounting for provision on account of leave encashment on retirement based on
actuarial valuation carried out as at the Balance Sheet date.

The liability for the leave encashment on retirement as at 31st March 2026 is ' 172.26 crore (P.Y. ' 179.08 crore).

4) Post-Retirement Medical Benefits: -

The Company has been accounting for provision on account of post-retirement medical benefits based on
actuarial valuation carried out as at the Balance Sheet date. Employees of the company upon retirement/
separation under Voluntary Retirement Scheme are entitled to medical benefits as per agreed upon scheme in
force.

The liability for the Post-Retirement Medical Benefits on retirement as at 31st March 2026 is ' 156.89 crore
(P.Y. ' 159.18 crore).

5) Long Term Service Award:

As a part of cordial relation and appreciation of long dedicated service, Company is honoring its employees
with a memento on completion of 25/35 years of service. The liability for the Long Term Service Award as at
31st March 2026 is ' 0.75 crore (P.Y. ' 0.78 crore).

General Description of Defined Contribution Plan

Contributory Superannuation Scheme:

The scheme is a defined contribution scheme. Employees are required to exercise their option to be a part of
the scheme and make a contribution equivalent to the amount contributed by the Company to the fund, upon
becoming the member of the scheme. Under the scheme the employee shall be eligible for pension at the time
of superannuation from the Company which is as per Government of India guidelines. During the year, Company
has recognized an expenditure of ' 13.48 crore (P.Y. ' 14.05 crore) as contribution towards the said scheme.

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

Furthermore, in presenting the above sensitivity analysis the present value of the defined benefit obligation has
been calculated using the projected unit credit method at the end of the reporting period, which is the same as
that applied in calculating the defined benefit obligation liability recognized in the balance sheet.

a) As per the Arbitration award received in its favor for the compensation claimed in respect of surrender of land to
Mumbai Metropolitan Regional Development Authority (MMRDA) on 23rd May, 2018, the Company is eligible for
compensation either in the form of cash / TDRs amounting to ' 75.17 crore along with interest over and above
the entitled compensation as recommended by Arbitration award. Company has filed an execution application,
however MMRDA has obtained stay against the same from Mumbai High Court subject to deposit of 25% of the
disputed amount with the Court. MMRDA has deposited 25% of the disputed amount as directed by the Court
and the Company has withdrawn the same amounting to ' 27.93 crores in F.Y. 2020-21 upon submission of bank
guarantees of equivalent amount in favour of the Court. The matter is yet to be heard.

b) Further, in respect to action initiated towards certain parties for recovery of its dues, the Company has filed
Execution Petitions attaching properties in existence upon receipt of favorable orders from Court amounting to
' 0.63 crore (P.Y. ' 0.63 crore).

c) In accordance with MOU entered with DOF for Import of Urea, the Company is eligible for interest on delayed
settlement of claims from DOF. Accordingly, Company has preferred interest claims amounting to ' 33.16 crore
(P.Y ' 30.16 crore) towards delay in settlement of balance 2% claims, however has not recognized income
towards the same since the same is subject to verification and finalization from DOF.

d) The Company has lodged a subsidy claim amounting to ' 5.10 crore with the Department of Fertilizers (DoF) in
respect of imports of TSP for Rabi 2024-25 towards compensation for variation in CFR prices over and above
the benchmark rates under the Nutrient Based Subsidy (NBS) scheme. The imports were undertaken pursuant
to the directives of DoF for ensuring availability of P&K fertilizers, with an assurance that issues relating to price
adversity would be suitably addressed. However, the benchmark rate for TSP imports have not yet been notified
by the DoF. Accordingly, pending notification of the benchmark rates and final determination of admissibility
of compensation by the DoF, Company has not recognized the aforesaid claim as income in the financial
statements.

e) The Hon'ble Supreme Court, vide its order dated 24 March 2026, has decided the matter in favour of the
Company in respect of the demand towards duty, interest and penalty relating to the purchase of Naphtha
at a concessional rate of excise duty for alleged use for purposes other than those specified in the exemption
notification for the period up to February 2005. Pursuant to the said order, the Company is entitled to refund of
' 11.66 crore.

Accordingly, considering that the recovery of the principal amount has become virtually certain consequent to
the aforesaid judgment, the same has been recognized as an asset and corresponding income in the financial
statements for the current year. However, the interest receivable on such refund is subject to departmental
verification, audit and final quantification. Pending final determination and crystallization of the same, the
interest component has not been recognized in the financial statements.

NOTE NO. 66| EXCEPTIONAL ITEMS:

a) Exceptional items recognized during the year 2025-26 comprise a net fair value gain of ' 41.04 crore arising
on fair valuation of Development Right Certificate receivable from Municipal Corporation of Greater Mumbai
(MCGM) towards surrender/handing over of land affected by two reservations/designations for Garden/Park,
Community Centre and road setback.

The aforesaid gain has been recognized in accordance with the provisions of Ind AS 38 - Intangible Assets and the
Guidance Note on Accounting for Real Estate Transactions issued by the Institute of Chartered Accountants of
India. The tax expense for the year includes the impact of capital gains tax relating to the aforesaid transaction.

NOTE NO. 67| DISCLOSURE RELATING TO CORPORATE SOCIAL RESPONSIBILITY "CSR" ACTIVITIES

Company during the year has incurred an expenditure of ' 12.15 crore (P.Y. ' 16.15 crore) towards the same which is
reported under Note No. 39 "Other Expenses" & Note 39B "Miscellaneous expenses".

• Derivatives not designated as hedging instruments

The Company has foreign currency denominated borrowings in the nature of External Commercial borrowings
(ECBs), Foreign Currency Term Loan (FCTL) for its long term requirements and Buyers Credit, Suppliers credit
for meeting its short term fund requirement. The Company has a hedging policy in place to manage its foreign
currency risk relating to these borrowings. The Company uses various products for hedging like Forex Forward
Contracts, Forward Rate Agreements, Plain Vanilla Options (call option and put option), Seagull options, Interest
Rate Swaps, Currency Swaps including Cross-Currency Swaps etc. The Company undertakes hedging through
these products considering the tenor of the underlying instrument and the same are not designated as cash flow
hedges.

NOTE NO. 7l| FAIR VALUES

The management has assessed that its financial assets and liabilities like cash and cash equivalents, trade receivables,
trade payables, bank overdrafts and other current liabilities approximate their carrying amounts largely due to the
short-term maturities of these instruments.

The following methods and assumptions were used to estimate the fair values for the given below financial assets.

• Unquoted Equity Shares of Indian Potash Limited

The fair values of the unquoted equity shares have been estimated by Income Approach using the Discounted
Cash Flow (DCF) method, whereby projected future cash flows of the investee are discounted to their present
value using appropriate discount rates. The valuation incorporates key assumptions such as revenue growth,
profitability, terminal value, and discounting parameters, based on relevant financial information and industry
outlook. The Company avails the services of registered valuer's for valuation of the same and the fair values so
reported are based on a valuation report received from an investment valuation expert.

• Investment in Mutual Fund

The fair values of investments in mutual fund units is based on the net asset value (NAV) as stated by the issuers
of these mutual fund units in the published statements as at Balance Sheet date. NAV represents the price at

which the issuer will issue further units of mutual fund and the price at which issuers will redeem such units from
the investors.

• Derivatives not designated as hedges

The Company enters into derivative financial instruments with various banks. Interest rate swaps, foreign
exchange forward contracts, derivative instruments are valued using valuation techniques, which employs the
use of market observable inputs (i.e. based on inputs/statement of position received from banks). All derivative
contracts with banks are unsecured.

• Investment Properties

The fair valuation of investment properties has been carried out by an independent registered valuer in
accordance with Ind AS 113, applying recognized valuation approaches, namely the Income Approach, Market
Approach, and Cost Approach, as appropriate. The properties have been suitably classified into plots, leased
commercial spaces, shops, and residential units for the purpose of valuation.

In the case of plots, a combination of the Income Approach (for the subsisting lease period) and the Market
Approach (for reversionary value) has been adopted where leases are at arm's length, using observable market
inputs such as Ready Reckoner rates and comparable market transactions.

For properties leased to government entities, where the lease arrangements are not at arm's length due to
concessional lease terms, the valuation has primarily been determined using the Market Approach to reflect the
underlying fair market value

• Transferable Development Rights:

Valuation of Transferable Development Rights (TDR) carried out by an independent registered valuer in
accordance with Ind AS 113 and internationally accepted valuation standards. For this purpose, the valuer
has obtained and examined relevant information, documents, and explanations made available and has also
relied on publicly available data, including Benchmark rates as per the Maharashtra Ready Reckoner, to arrive
at an appropriate fair value. In addition, due consideration has been given to inputs provided by the Company,
including details of past attempts to sell the subject property and related outcomes. The valuation also factors
in applicable guidelines rates as on the valuation date and prevailing market practice for pricing of TDR.

The methodology adopted includes the use of Maharashtra guideline rates, classification-based pricing of
TDR, analysis of comparable transactions, and application of suitable appropriate discounting techniques to
determine the present value.

The Company's principal financial liabilities, other than derivatives, comprise of loans and borrowings, trade and other
payables, and financial guarantee contracts. The main purpose of these financial liabilities is to finance the Company's
operations and to provide guarantees to support operations of its joint ventures, if any. At present there is no financial
guarantees given by the Company.

The Company's principal financial assets include loans, trade and other receivables, cash and cash equivalents that
derive directly from its operations. The Company also holds FVTOCI investments and enters into derivative transactions.

The Company is exposed to market risk (including interest rate risk and currency risk), credit risk and liquidity risk. The
Company seeks to minimize the effects of these risks by using derivative financial instruments to hedge risk exposures.
The use of financial derivatives is governed by the Company's polices approved by the board of directors, which provide
written principles on foreign exchange risk, interest rate risk, use of financial hedging instruments.

The Company's management oversees these risks with the support of a Risk Management Committee that advises
on financial risks and the appropriate financial risk governance framework for the Company. The Risk Management
Committee provides assurance to the Company's management 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.

All derivative activities for risk management purposes are carried out by designated officers who have the appropriate
skills, experience and supervision. It is the Company's policy that no trading in derivatives for speculative purposes may
be undertaken. These risks are summarized below:

• Interest Rate Risk:

Interest Rate Risk Management:

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

The risk is managed by the Company by maintaining an appropriate mix between fixed and floating rate
borrowings. Hedging activities are evaluated regularly to align interest rate views and defined risk appetite,
ensuring the most cost-effective hedging structures are applied and accordingly the Company enters into
interest rate swaps.

Interest Rate Sensitivity Analysis:

The sensitivity analysis has been determined based on the exposure to interest rate risk on the long term
borrowings outstanding as at the end of the reporting period. For floating rate liabilities, the analysis is prepared
assuming the amount of the liability outstanding at the end of the reporting period was outstanding for the
whole year with a 50 basis point increase or decrease. The detailed sensitivity analysis is given below:

The assumed movement in basis points for the interest rate sensitivity analysis is based on the currently
observable market environment.

• Credit Risk:

Credit Risk Management:

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial
loss to the Company. The Company has adopted a policy of only dealing with creditworthy counterparties
and obtaining sufficient collateral, where appropriate, as a means of mitigation the risk of financial loss from
defaults.

Trade receivables consist of a large number of customers, spread across diverse geographical areas for its
fertilizers segment and across geographical areas and industries in respect of its chemicals segment. Ongoing
credit evaluation is performed on the financial condition of accounts receivable.

The credit risk on liquid funds is limited because the counterparties are primarily Public and private Sector
mutual funds and further the Company invests only in 100% debt oriented schemes of such funds. As regards
derivative financial instruments the same is also limited because the counterparties are banks whose operations
are regulated by the Reserve Bank of India.

• 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
price risk, such as equity price risk and commodity risk. The Company's activities expose it's primarily to the
financial risk of changes in foreign currency risk and interest rates risk.

• Liquidity risk

Liquidity risk management

Liquidity risk management refers to the management of the Company's short-term, medium-term and long-term
funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate
reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash
flows, and by matching the maturity profiles of financial assets and liabilities.

The following table details the Company's remaining contractual maturity for its non-derivative financial liabilities
with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of
financial liabilities based on the earliest date on which the Company can be required to pay. The tables include
both interest and principal cash flows. To the extent that interest flows are floating rate, the undiscounted
amount is derived from interest rate curves at the end of the reporting period.

Foreign Currency Risk:

The Company undertakes transactions denominated in foreign currencies, consequently, exposure to exchange
rate fluctuations arise. The Company has a Board approved Hedging Policy in place entailing parameters for
hedging its foreign currency exposures completely before their maturities. The Company manages its exchange
rate exposures within the approved parameters of the hedging policy through various derivative instruments
such as options, swaps etc.

Foreign Currency Sensitivity Analysis:

The Company is mainly exposed to the currency of USD and EUR. The following table details the Company's
sensitivity to a 5% increase and decrease in the INR as against the USD/EUR. The sensitivity analysis includes
only outstanding foreign currency denominated monetary items i.e. loans in foreign currency and adjusts their
translation at the period end for a 5% change in foreign currency rates. A positive number indicates an increase
in profit or equity where the INR strengthens 5% against USD/EUR. For a 5% weakening of INR as against USD/
EUR, there would be a comparable impact on the profit or equity, and the number would be negative.

For the purpose of the Company's Capital management, capital includes equity capital and all other reserves. The
primary objective of the Company's capital management is to maximize the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and
the requirements of the financial covenants. The Company, for its capex requirement, borrows to the extent of 70%
of the requirement and the remaining 30% shall be sourced from the internal accruals. Further, the Company, being a
Public sector undertaking, is governed by the guidelines of the Department of Investment & Public Asset Management
(DIPAM), which specifies the minimum percentage of dividend that can be declared. Considering the profitability,
CAPEX and ability to service dividend the actual dividend payout is undertaken and exemption is sought, if necessary.
The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt.

Gearing Ratio:

In order to achieve this overall objective, the Company's capital management, amongst other things, aims to ensure
that its 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 or levy of penal interest. Breaches if any, in the financial covenants of any interest-bearing loans and
borrowings are suitably addressed.

During the year, the Company has classified its Urea Stripper, forming part of Plant and Machinery of the Urea
manufacturing unit, as "Asset held for sale" in accordance with the requirements of Ind AS 105- Non-current Assets
Held for Sale and Discontinued Operations. The asset is available for immediate sale in its present condition and the
management is committed to a plan to sell the asset. Further, the sale is considered highly probable and expected to
be completed within a period of twelve months from the date of such classification.

In accordance with requirements of Ind AS 105, the asset has been measured at the lower of it carrying amount and
fair value less costs to sell. As at the reporting date, the carrying amount of the asset is ' 0.87 Crore, whereas its
estimated fair value is ' 0.89 Crore and no impairment loss has been recognized in the financial statements. The fair
value of the asset has been determined based on the estimate of an independent valuer, taking into consideration
prevailing market conditions and comparable market prices for similar assets.

NOTE NO. 77| SUPPLIER FINANCE ARRANGEMENTS (TRADE RECEIVABLES DISCOUNTING SYSTEM -TREDS)

The Company facilitates payments to certain Micro and Small Enterprise (MSE) vendors through the Trade Receivables
Discounting System (TReDS), a platform approved by the Reserve Bank of India, with the objective of enabling timely
realization of dues by such vendors.

Under this arrangement, eligible vendors may, at their discretion, upload invoices accepted by the Company on the
TReDS platform and avail early payment from participating financiers through invoice discounting. Upon confirmation/
acceptance of the invoices by the Company, the respective financier makes payment directly to the vendor and the
Company subsequently settles the invoice amount with the financier on the original due dates in accordance with the
agreed credit terms.

The Company is not a party to the financing arrangement entered into between the vendor and the financier and
does not bear any interest, discounting charges or related financing costs in respect of such transactions. Further, the
arrangement does not result in any extension of original credit period granted by the vendor, nor has the Company
provided any guarantee, collateral or additional credit enhancement in connection with such financing arrangements.

81. Fertilizers are taxed at 5% GST rate as against taxes paid on inputs at equal or higher rate of GST. Further IGST
on imports of P&K fertilizers is on the assessable value of imports, whereas output liability is on Basic Price
(MRP-GST), which is considerably lower as compared to assessable value. Subsidy component of fertilizers is
excluded from the taxable output value, making the absolute output GST payable much lower than the GST paid
on inputs. This has resulted in accumulation of ITC. The Company is pursuing the matter with the Department of
Fertilizers (DOF). The Company expects favourable consideration of the issue relating to accumulation of ITC by
the concerned authorities.

NOTE NO. 82| DETAILS OF BENAMI PROPERTY HELD

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

83. Disclosures relating to borrowings availed against security of current assets

Quarterly returns of current assets filed by the company with banks and financial institutions are in agreement
with books of accounts.

84. The Company has not been declared willful defaulter by any bank or financial institution or any other lender.

85. There are no material transactions with respect to struck off companies as mentioned under section 248 of the
Companies Act, 2013 or section 560 of the Companies Act, 1956.

86. The Company does not have any charges or satisfaction of charges which are yet to be registered with ROC
beyond the statutory period.

87. Provision regarding the number of layers prescribed under Section 2 (87) of the Companies Act 2013 read with
the Companies (Restriction on number of layers) Rules, 2017 is not applicable.

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

89. The Company has not traded or invested in crypto currency or virtual currency during the respective financial
year/period.

90. The Company does not have any scheme of arrangements which have been approved by the Competent
Authority in terms of Section 230 to 237 of the Companies Act, 2013.

91. 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 like to or on behalf of the Ultimate Beneficiaries.

92. 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 the behalf of the Ultimate Beneficiaries.

94. The standalone financial statements were authorized for issue in accordance with a resolution passed by the
Board of Directors on 21st May, 2026.

95. The financial statements as approved by the Board of Directors are subject to audit by Comptroller and Auditor
General of India and final approval by its Shareholders.

96. For the year ended 31st March, 2026, the operations of the Company were marginally impacted due to disruptions
arising from the ongoing West Asia crisis, particularly affecting the availability and supply of natural gas.

However, based on the assessment carried out, the Company does not expect any material adverse impact
on its financial results for the year. The Management has evaluated the prevailing situation and, considering
the mitigating measures undertaken, is of the view that there will be no significant long-term impact on the
continuity of operations of the Company, the carrying value and useful life of its assets, or its overall financial
position.

97. The figures of the previous year have been re-arranged and regrouped wherever necessary and / or practicable
to make them comparable with those of the current year and as per Schedule III amendments as mandated by
Companies Act, 2013.

98. Events occurring after the Balance sheet date

Board of Directors have recommended a final dividend of ' 1.34 per equity share of ' 10/- each (P.Y. ' 1.32
per equity share of ' 10/- each) i.e. 13.40 % on paid up equity share capital of the Company for the financial
year 2025-26 which is subject to approval of Shareholders of the Company. However as per DlPAM Guidelines,
Company is required to pay dividend either at 4% of Net Worth or 30% of Profit after tax, whichever is higher
and thus exemption is being sought by the Company. Since the Company had declared and paid a dividend
lower than the minimum stipulated dividend for FY 2023-24 and FY 2024-25, it has approached DOF/DIPAM for
exemption towards the same which is awaited.