(m) Provisions, Contingent Liabilities and Contingent Assets

A provision is recognised if, as a result of a past event, the
Company has a present legal or constructive obligation
that can be estimated reliably, and it is probable that an
outflow of economic benefits will be required to settle
the obligation. If the effect of the time value of money
is material, provisions are determined by discounting the
expected future cash flows at a pre-tax rate that reflects
current market assessments of the time value of money and
the risks specific to the liability. Where discounting is used,
the increase in the provision due to the passage of time is
recognised as a finance cost.

Contingent Liability is disclosed after careful evaluation
of facts, uncertainties and possibility of reimbursement,
unless the possibility of an outflow of resources embodying
economic benefits is remote. Contingent liabilities are not
recognised but are disclosed in notes.

Contingent assets are not disclosed in the Standalone
Financial Statements unless an inflow of economic
benefits is probable."

provisions for defined benefit plans and the
resulting expense are calculated in accordance
with Ind AS 19 - Employee Benefits by
the Projected Unit Credit Method. The
future benefit obligations are valued by an
independent actuary at the year-end and spread
over the entire employment period on the basis
of specific assumptions regarding beneficiary
structure and the economic environment. This
includes the determination of the discount
rate, salary escalation, mortality rate etc.
which affects the valuation. In determining the
appropriate discount rate at each balance sheet
date, the Management considers the interest
rates which relates to the benchmark rate
available for Government Securities and that
have terms to maturity approximating the terms
of the related defined benefit obligation.

Recognition and measurement of defined
benefit plans:

The cost of providing defined benefits is
determined using the Projected Unit Credit
method with actuarial valuations being
carried out at each reporting date. The defined
benefit obligations recognized in the Balance
Sheet represent the present value of the
defined benefit obligations as reduced by the
fair value of plan assets, if applicable. Any
defined benefit asset (negative defined benefit
obligations resulting from this calculation)
is recognized representing the present value
of available refunds and reductions in future
contributions to the plan.

All expenses represented by current service
cost, past service cost, if any, and net interest
on the defined benefit liability (asset) are
recognized in the Statement of Profit and Loss.
Remeasurements of the net defined benefit
liability (asset) comprising actuarial gains
and losses and the return on the plan assets
(excluding amounts included in net interest
on the net defined benefit liability/asset), are
recognized in Other Comprehensive Income.
Such remeasurements are not reclassified
to the Statement of Profit and Loss in the
subsequent periods.

The Company presents the above liability/
(asset) as current and non-current in the
balance sheet as per actuarial valuation by
the independent actuary; however, the entire
liability towards gratuity is considered as

current as the Company will contribute
this amount to the gratuity fund within the
next twelve months.

Other Long Term Employee Benefits:

Entitlements to annual leave and sick leave are
recognized when they accrue to employees.
Sick leave can only be availed while annual
leave can either be availed or encashed subject
to a restriction on the maximum number
of accumulation of leave. The Company
determines the liability for such accumulated
leaves using the Projected Accrued Benefit
method with actuarial valuations being carried
out at each Balance Sheet date. Expenses
related to other long term employee benefits
are recognized in the Statement of Profit and
loss (including actuarial gain and loss).

(p) Lease accounting

Assets taken on lease:

The Company mainly has lease arrangements for land.

The Company assesses whether a contract is or contains a
lease, at inception of a contract. The assessment involves
the exercise of judgement about whether (i) the contract
involves the use of an identified asset, (ii) the Company
has substantially all of the economic benefits from the use
of the asset through the period of the lease, and (iii) the
Company has the right to direct the use of the asset.

The Company recognises a right-of-use asset (“ROU”) and
a corresponding lease liability at the lease commencement
date. The ROU asset is initially recognised at cost,
which comprises the initial amount of the lease liability
adjusted for any lease payments made at or before the
commencement date, plus any initial direct costs incurred
and an estimate of costs to dismantle and remove the
underlying asset or to restore the underlying asset or
the site on which it is located, less any lease incentives.
They are subsequently measured at cost less accumulated
depreciation and impairment losses.

The ROU asset is depreciated using the straight-line
method from the commencement date to the earlier of, the
end of the useful life of the ROU asset or the end of the
lease term i.e. between 3 to 90 years

If a lease transfers ownership of the underlying asset or the
cost of the ROU asset reflects that the Company expects
to exercise a purchase option, the related ROU asset is
depreciated over the useful life of the underlying asset. The
estimated useful lives of ROU assets are determined on the
same basis as those of property and equipment. In addition,
the right-of-use asset is periodically reduced by impairment
losses, if any, and adjusted for certain re-measurements of
the lease liability.

The lease liability is initially measured at the present value
of the lease payments that are not paid at the commencement
date, discounted using the interest rate implicit in the lease
or, if that rate cannot be readily determined, the Company
uses an incremental borrowing rate specific to the Company,
term and currency of the contract. Generally, the Company
uses its incremental borrowing rate as the discount rate.

Lease payments included in the measurement of the
lease liability include fixed payments, variable lease
payments that depend on an index or a rate known at the
commencement date; and extension option payments
or purchase options payment which the Company is
reasonable certain to exercise.

Variable lease payments that do not depend on an index or
rate are not included in the measurement the lease liability
and the ROU asset. The related payments are recognised
as an expense in the period in which the event or condition
that triggers those payments occurs and are included in the
line “other expenses” in the statement of profit or loss.

After the commencement date, the amount of lease
liabilities is increased to reflect the accretion of interest
and reduced for the lease payments made and remeasured
(with a corresponding adjustment to the related ROU asset)
when there is a change in future lease payments in case
of renegotiation, changes of an index or rate or in case of
reassessment of options.

Short-term leases and leases of low-value assets:

The Company has elected not to recognize ROU assets and
lease liabilities for short term leases as well as low value
assets and recognizes the lease payments associated with
these leases as an expense in the statement of profit and loss.

(q) Impairment of Non-financial Assets

Non-financial assets other than inventories, deferred tax
assets and non-current assets classified as held for sale are
reviewed at each Balance Sheet date to determine whether
there is any indication of impairment. If any indication of
such impairment exists, the recoverable amount of such
assets / cash generating unit is estimated and in case the
carrying amount of these assets exceeds their recoverable
amount, an impairment is recognised.

The recoverable amount is the higher of the fair value less
cost to sell and their value in use. Value in use is arrived at
by discounting the future cash flows to their present value
based on an appropriate discount factor. Assessment is
also done at each Balance Sheet date as to whether there is

indication that an impairment loss recognised for an asset
in prior accounting periods no longer exists or may have
decreased, such reversal of impairment loss is recognised
in the Statement of Profit and Loss."

(r) Borrowing Costs

Borrowing cost includes interest, amortization of ancillary
costs incurred in connection with the arrangement of
borrowings and exchange differences arising from foreign
currency borrowings to the extent they are regarded as an
adjustment to the interest cost.

Borrowing costs, if any, directly attributable to the
acquisition, construction or production of an asset that
necessarily takes a substantial period of time to get
ready for its intended use or sale are capitalized, if any.
All other borrowing costs are expensed in the period in
which they occur.

(s) Government Grants / Subsidies:

No Grants/Subsidies have been received by the company
during the period.

(t) Segment reporting

The Company identifies operating segments based on
the dominant source, nature of risks and returns and the
internal organisation. The operating segments are the
segments for which separate financial information is
available and for which operating profit/loss amounts are
evaluated regularly by the Board of Directors (who are
Company’s chief operating decision makers) in deciding
how to allocate resources and in assessing performance.

(u) Dividends Payable

Final dividend on shares are recorded as a liability on the
date of approval by the shareholders and interim dividends
are recorded as a liability on the date of declaration by the
Company’s Board of Directors.

(v) Earnings Per Share

Basic earnings per share are calculated by dividing
the Profit or Loss for the year attributable to equity
shareholders by the weighted average number of equity
shares outstanding during the period. For the purpose of
calculating diluted earnings per share, the Profit or Loss for
the year attributable to equity shareholders and the weighted
average number of shares outstanding during the period are
adjusted for the effect of all dilutive potential equity shares.
The weighted average number of equity shares outstanding
during the period is adjusted for bonus issue and share split."

(w) Events after reporting date

Where events occurring after the balance sheet date
provide evidence of conditions that existed at the end of

the reporting period, the impact of such events is adjusted
within the standalone financial statements. Otherwise,
events after the balance sheet date of material size or nature
are only disclosed.

(x) Offsetting of financial instruments

Financial assets and financial liabilities are offset and the
net amount is reported in the 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, or
to realise the assets and settle the liabilities simultaneously.

(y) Rounding Of Amounts

All amounts disclosed in the Standalone Financial
Statements and notes have been rounded off to the nearest
Crores, unless otherwise stated.

(z) Recent Accounting Pronouncements

Ministry of Corporate Affairs (“MCA”) notifies new
standards or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as issued
from time to time.

In August2025, MCA notified the following amendments to:
Classification of Liabilities as Current or Non-current and
Non-current Liabilities with Covenants - Amendments
to Ind AS 1- The amendments clarify that lender waivers
obtained after the reporting date cannot be considered
for the purpose of classifying liabilities as current or non
current and require retrospective application in accordance
with Ind AS 8. These amendments are effective for
reporting periods beginning on or after April 01, 2026.
The Company does not expect any material impact on
its financial statements.Ministry of Corporate Affairs
(“MCA”) notifies new standard or amendments to the
existing standards under Companies (Indian Accounting
Standards) Rules as issued from time to time. For the
year ended March 31, 2025, MCA has not notified any
new standards or amendments to the existing standards
applicable to the Company."

(aa) Impact of the initial application of new and amended
Ind AS that are effective in the current year that begins
on or after April 1,2025.

Ministry of Corporate Affairs (“MCA”) notifies
new standards or amendments to the existing
standards under Companies (Indian Accounting
Standards) Rules as issued from time to time.
In May 2025, MCA notified amendments to Ind AS
21 - The Effects of Changes in Foreign Exchange
Rates, applicable w.e.f. April 1, 2025.The Company has
reviewed the amendment and based on its evaluation has
determined that it does not have any significant impact in
its financial statements.

In August 2025, MCAnotified the following amendments to:

1. Ind AS 7, Statement of Cash Flows and Ind AS
107, Financial Instruments: Disclosures, applicable
w.e.f. April 1, 2025 - The amendment in Ind AS 7
requires to inform users of financial statements of
the existence of supplier finance arrangements and
explain the nature of the arrangements, the carrying
amount of liabilities and the range of payment due
dates. Ind AS 107 has been amended to add supplier
finance arrangements as a factor that may cause
concentration of liquidity risk. The Company has
reviewed the amendment and based on its evaluation
has determined that it does not have any significant
impact in its financial statements.

2. Ind AS 12, International Tax Reform - Pillar
Two Model Rules applicable immediately - The
amendments provide a temporary mandatory relief
from deferred tax accounting for top-up tax and
require companies to disclose that they have applied
the relief. This relief is immediate and applies
retrospectively. The amendments also require
companies to provide new disclosures to compensate
for potential loss of information resulting from the
relief. Such disclosures are to be provided for annual
reporting periods beginning on or after April 1, 2025.
The Company has reviewed the amendment and based
on its evaluation has determined that it does not have
any significant impact in its financial statements."

(ab) Going Concern

When preparing financial statements, Management makes
an assessment of the Company's ability to continue as
going concern. Financial Statements is prepared on going
concern basis unless management either intends to liquidate
the Company or to cease trading, or has no realistic
alternative but to do so. When management is aware, in
making its assessment, of material uncertainties related to
events or conditions that may cast significant doubt upon
the Company's ability to continue as going concern, those
uncertainties are disclosed. When the financial statements
is not prepared on a going concern basis, that fact is
disclosed, together with the basis on which the financial
statements is prepared and the reason why the Company is
not regarded as going concern.

(ac) Critical accounting 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:

(a) Income taxes

The Company’s tax jurisdiction is India. Significant
judgements are involved in estimating budgeted
profits for the purpose of paying advance tax,
determining the provision for income taxes,
including amount expected to be paid/recovered for
uncertain tax positions.

(b) Property, plant and equipment

Property, plant and equipment represent a significant
proportion of the asset base of the Company.
The charge in respect of periodic depreciation is
derived after determining an estimate of an asset’s
expected useful life and the expected residual value
at the end of its life. The useful lives and residual
values of Company’s assets are determined by the
management at the time the asset is acquired and
reviewed periodically, including at each financial
year end. The lives are based on historical experience
with similar assets as well as anticipation of future
events, which may impact their life, such as changes
in technical or commercial obsolescence arising from
changes or improvements in production or from a
change in market demand of the product or service
output of the asset.

(c) Defined Benefit Obligation

The costs of providing pensions and other post¬
employment benefits are charged to the Statement
of Profit and Loss in accordance with Ind AS 19
‘Employee benefits’ over the period during which
benefit is derived from the employees’ services. The
costs are assessed on the basis of assumptions selected
by the management. These assumptions include
salary escalation rate, discount rates, expected rate of
return on assets and mortality rates.

(d) Fair value measurement of financial instruments

When the fair values of financials assets and
financial liabilities recorded in the balance sheet
cannot be measured based on quoted prices in active
markets, their fair value is measured using valuation
techniques, including the discounted cash flow model,
which involve various judgements and assumptions.

(e) Right-of-use assets and lease liability

The Company has exercised judgement in
determining the lease term as the noncancellable term
of the lease, together with the impact of options to
extend or terminate the lease if it is reasonably certain
to be exercised. Where the rate implicit in the lease
is not readily available, an incremental borrowing
rate is applied. This incremental borrowing rate
reflects the rate of interest that the lessee would have
to pay to borrow over a similar term, with a similar
security, the funds necessary to obtain an asset of a
similar nature and value to the right-of-use asset in a
similar economic environment. Determination of the
incremental borrowing rate requires estimation.

(f) Provisions and Contingencies:

In the normal course of business, contingent liabilities
arise from litigations and claims. Potential liabilities that
are possible but not probable of crystallising or are very
difficult to quantify reliably are treated as contingent
liabilities. Such contingent liabilities are disclosed in
the notes but are not recognised. Potential liabilities
that are remote are neither recognized nor disclosed as
contingent liability. The management decides whether
the matters needs to be classified as ‘remote,’ ‘possible’
or ‘probable’ based on expert advice, past judgements,
terms of the contract, regulatory provisions etc.

(g) Impairment loss in Investments carried at cost:

The Company conducts impairment reviews of
investments in subsidiaries / associates whenever events
or changes in circumstances indicate that their carrying
amounts may not be recoverable or tests for impairment
annually. Determining whether an asset is impaired
requires an estimation of the recoverable amount, which
requires the Company to estimate the value in use which
base on future cash flows and a suitable discount rate in
order to calculate the present value.

As per the records of the Company, including its registers of Shareholders/Members and other declarations received from shareholders
regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of equity shares.

c) Rights, preferences and restrictions :

The Company has only one class of equity shares having a par value of Re. 1 Per Share (March 31, 2025 - Re. 1 per share). Each holder of
equity share is entitled to one vote per share.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after
distribution of all preferential amounts.

The distribution will be in proportion to the no. of equity shares held by shareholder.

d) The Company did not issue any bonus shares during the five years immediately preceding the balance sheet date.

e) No shares of any class were bought back by the Company during the five years immediately preceding the balance sheet date.

Nature and purpose of reserves

a) Securities premium - Securities premium is used to record the premium on issue of shares. This will be utilised in accordance with the
provisions of the Act.

b) General reserve - : The General reserve is created by way of transfer of profits from retained earnings for appropriation purposes. This
reserve is utilised in accordance with the provisions of the Act.

c) Retained earnings: Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends
or other distributions paid to shareholders.

i) Detail of Securities and Terms of repayment

a) The Company has been sanctioned secured loans from banks, comprising multiple vehicle loans, which are repayable in balance
instalments over a period of 12 to 60 months from the reporting date. The interest rates on these loans range from 7.75% to
10.00% per annum.

b) The Company has also been sanctioned secured vehicle loans from MERCEDES-BENZ FINANCIAL SERVICES INDIA PRIVATE
LIMITED, which are repayable in balance instalments over a period of 60 months from the reporting date. The effective interest rate on
this loan is 6.72% per annum.

c) The vehicle loans are secured by way of hypothecation of the respective vehicles financed.

1) Terms and conditions of borrowings are as follows:

a) The Company has been sanctioned a secured working capital facility of H 35 crores from HDFC Bank Limited, including a non-fund-
based limit of H 10 crores. The facility carries an interest rate of 8.60% per annum (Previous Year: Nil). As at 31 March 2026, the
Company had utilized H 14.84 crores under the said facility (Previous Year: H NIL).

b) The Company has been sanctioned a secured working capital facility of H 50 crores from State Bank of India, including a non-fund-
based limit of H 25 crores. The facility carries an interest rate ranging from 3 Month MCLR and 91 Days T Bill link per annum
(Previous Year: 0.85% above 6 Month MCLR per annum). As at 31 March 2026, the Company had utilized H 21.94 crores under the
said facility (Previous Year: H 14.25 crores).

c) The Company has been sanctioned a secured working capital facility of H 75 crores from Bank of India, including a non-fund-based limit
of H 35 crores. The facility carries an interest rate of MCLR Nil Spread 0.39% per annum (Previous Year: MCLR Nil Spread 0.85%
per annum). As at 31 March 2026, the Company had utilized H 8.00 crores under the said facility (Previous Year: H 15.54 crores).

2) Security and terms of working capital borrowings are as follows:

The working capital facilities availed from the banks are secured by a first pari passu charge by way of hypothecation over the Company's
current assets, including inventories of raw materials, work-in-progress, finished goods, stores and spares, consumables, packing materials,
book debts, and all other present and future movable current assets.

The facilities are further secured by a second pari passu charge over the following assets:

a) Immovable properties situated at Plot Nos. E-17 to E-23, UPSIDC, Deva Road, Lucknow.

b) Plant and machinery located at UPSIDC, Deva Road, Lucknow.

c) Leasehold industrial plots bearing Plot Nos. K-4 and K-5, UPSIDC, Sandila, Uttar Pradesh.

d) Leasehold land and buildings situated at Plot Nos. D-2, D-3, D-4 and K-6 to K-10, UPSIDC, Sandila, Uttar Pradesh.

3) During the year, the Company availed an overdraft facility against the security of fixed deposits. As at 31 March 2026, the outstanding
balance under the said facility amounted to H 23.85 crores (31 March 2025: H 18.66 crores). The facility carries interest at FDR Intt 0.50%
per annum (31 March 2025: FDR Intt 0.50% per annum).

4) The Company has not defaulted in the repayment of principal or interest in respect of its borrowings and has not been declared a wilful
defaulter by any bank, financial institution, or other lender in accordance with the guidelines issued by the Reserve Bank of India.

5) The Company has utilized the working capital facilities solely for the purposes for which they were sanctioned.

6) The Company has borrowings from banks on the basis of security of current assets. The quarterly returns/statements for the first three quarters
filed by the Company with the banks are in agreement with the books of accounts. However, the statement for the fourth quarter ended March
31, 2026 has not been filed with the bank up to the date of approval of these financial statements by the Board of Directors, and hence the
reconciliation for the same is not applicable as of the reporting date.

7) Refer Note 41 for maturity analysis.

The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the obligations
related to lease liabilities as and when they fall due. Rent expense recorded for short-term leases was H 2.31 Crores for the year ended March 31,
2026 (H 1.26 Crores for the year ended March 31, 2025) is included in other expenses. Interest expense on lease liabilities was H 0.31 Crores for
the year ended March 31, 2026 (H 0.31 Crores for the year ended March 31, 2025) is included in finance cost. The Company’s lease asset classes
primarily consist of leases for land. The Company assesses whether a contract contains a lease, at inception of a contract. A contract is, or contains,
a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange of consideration. To assess whether
a contract conveys the right to control the use of an identified asset, the Company assesses whether: (i) the contract involves the use of an identified
asset (ii) the Company has substantially all the economic benefits from the use of the asset through the period of the lease and (iii) the Company
has the right to direct the use of the asset.

At the date of commencement of the lease, the Company recognizes a right-of-use asset (“ROU”) and a corresponding lease liability for all lease
arrangements in which it is a lessee, except for leases with a term of twelve months or less (short-term leases) and low value leases. For these short¬
term and low value leases, the Company recognizes the lease payments as an operating expense in the statement of profit and loss

Certain lease arrangements include the options to extend or terminate the lease before the end of the lease term. ROU assets and lease liabilities
include the options when it is reasonably certain that they will be exercised.

The weighted average incremental borrowing rate applied to lease liabilities as at April 1, 2025 is 8.5% (Previous year: 8.5%)

Total cash out flow for above leases amounts to H 0.89 crores (Previous year:H 2.68 crores).

The remaining term of Leasehold Land /Building ranges from 02 to 87 years as at March 31, 2026 (0 to 88 years as at March 31, 2025).

The lease liability is initially measure at amortized cost at the present value of the future lease payments. The lease payments are discounted using
the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates in the country of domicile of these leases.
Lease liabilities are remeasured with a corresponding adjustment to the related right of use asset if the Company changes its assessment if whether
it will exercise an extension or a termination option.

36 Assets and liabilities relating to Employee Benefits

The plans mentioned in accounting policy in Note 1.3(o), typically expose the Group to actuarial risks such as: investment risk, liquidity risk,
market risk and legislative risk.

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 then the Gratuity Benefits will be
paid earlier than expected. Since there is no condition of vesting on the death benefit, the acceleration of cashflow 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 then 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 cashflows

36 Assets and liabilities relating to Employee Benefits (Contd..)

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 Social Security Code,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.

37 Assets and liabilities relating to Employee Benefits

See accounting policy in Note 1.3(o)

For details about the related employee benefit expenses, refer Note 28

A. Defined Contribution Plan:

The Company’s defined contribution plans are superannuation, employees state insurance scheme and provident fund administered by
Government since the Company has no further obligation beyond making the contributions.

B. Defined Benefit Obligation:

The Company provides for gratuity for employees as per the Payment of Gratuity Act, 1972/ Company policy. Employees who are in
continuous service for a period of 5 years or more are eligible for gratuity.

The amount of gratuity payable on retirement/ termination is the employee’s last drawn salary per month computed proportionately as per the
Payment of Gratuity Act, 1972/ Company policy multiplied for the number of years of service.

The plan asset for the funded gratuity plan is invested in insurer managed fund administered by Life Insurance Corporation of India (‘LIC’),
independently as per the investment pattern stipulated for Pension and Group Schemes fund as per the regulations framed by Insurance and
Regulatory and Development Authority of India i.e., 100% of plan assets are invested in insurer managed fund. Quoted price of the same is
not available in active market.

D. Compensatory absences

The Company permits encashment of compensated absence accumulated by their employees on retirement, separation and during the course
of service. The liability in respect of the Company, for outstanding balance of leave at the balance sheet date is determined and provided on
the basis of actuarial valuation as at the balance sheet date performed by an independent actuary. The Company doesn’t maintain any plan
assets to fund its obligation towards compensated absences.

The liability for Compensated absences (Non - Funded) as at March 31,2026 is H2.68 Crores (Previous year H2.12 crores).

Note:

Although the analysis does not take account of the full distribution of cash flows expected under the plan, it does provide an approximation
of the sensitivity of the assumptions shown.

The estimates of future salary increases considered in actuarial valuation takes into account inflation, seniority, promotion and other relevant
factors as supply and demand in the employment market.

39 Segment Reporting

The Board of Directors has been identified as the Chief Operating Decision Maker (CODM) of the Company. The CODM is responsible
for allocating resources and assessing the performance of the Company’s operating segments. Based on the internal reporting framework
and the manner in which performance is reviewed, the Company has identified ‘Agro Chemicals’ as its sole operating segment.
Accordingly, the segment revenue, interest revenue, interest expense, depreciation and amortisation, segment assets, and segment liabilities are the
same as those presented in the accompanying financial statements.

40 Earnings per share (EPS)

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

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of
Equity shares outstanding during the year.

41 Financial risk management

The Company’s Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk management framework.

The Company is exposed to various financial risks arising from its underlying operations and finance activities. The Company is primarily exposed
to market risk (i.e. interest rate and foreign currency risk) and to credit risk and liquidity risk. The Company’s Corporate Treasury function plays
the role of monitoring financial risk arising from business operations and financing activities.

Financial risk management within the Company is governed by policies and guidelines approved by the senior management and the Board of
Directors. These policies and guidelines cover interest rate risk, foreign currency risk, credit risk and liquidity risk. Company policies and guidelines
also cover areas such as cash management, investment of excess funds and the raising of short and long-term debt. Compliance with the policies
and guidelines is managed by the Corporate Treasury function within the Company. Review of the financial risk is done on a monthly basis by the
Chairman and Managing Director and on a quarterly basis by the Board of Directors. The objective of financial risk management is to contain,
where deemed appropriate, exposures on net basis to the various types of financial risks mentioned above in order to limit any negative impact on
the Company’s results and financial position.

41 Financial risk management (Contd..)

In accordance with its financial risk management policies, the Company manages its market risk exposures by using specific type of financial
instruments duly approved by the Board of Directors as and when deemed appropriate. It is the Company’s policy and practice neither to enter into
derivative transactions for speculative purpose, nor for any purpose unrelated to the underlying business. The Board of Directors / Chairman and
Managing Director reviews and approves policies for managing each of the above risks.

The Company has exposure to the following risks arising from financial instruments:

a. Credit risk;

b. Liquidity risk;

c. Market risk; and

d. Interest rate risk

(A) Credit risk

Credit risk arises from the possibility that the value of receivables or other financial assets of the Company may be impaired because
counterparties cannot meet their payment or other performance obligations.

To manage credit risks from trade receivables other than Related Party, the credit managers from Order to Cash department of the Company
regularly analyse customer’s receivables, overdue and payment behaviours. Some of these receivables are collateralised and the same is
used according to conditions. These could include advance payments, security deposits, post-dated cheques etc. Credit limits for this trade
receivables are evaluated and set in line with Company’s internal guidelines.

There is no significant concentration of default risk.

Credit risks from financial transactions are managed independently by Finance department. For banks and financial institutions, the Company
has policies and operating guidelines in place to ensure that financial instrument transactions are only entered into with high quality banks
and financial institutions. The Company had no other financial instrument that represents a significant concentration of credit risk.

The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit
risk on an ongoing basis through out each reporting period. To assess whether there is a significant increase in credit risk the Company
compares the risk of default occurring on asset as at the reporting date with the risk of default as at the date of initial recognition. It considers
reasonable and supportive forwarding-looking information such as:

i) Actual or expected significant adverse changes in business,

ii) Actual or expected significant changes in the operating results of the counterparty,

iii) Financial or economic conditions that are expected to cause a significant change to the counterparty’s ability to meet its obligations,

iv) Significant changes in the value of the collateral supporting the obligation or in the quality of the third-party guarantees or
credit enhancements.

Financial assets are written off when there is no reasonable expectations of recovery. Where loans or receivables have been written off, the
Company continues engage in enforcement activity to attempt to recover the receivable due.

Where recoveries are made, these are recognized in statement of profit & loss.

Credit risk is managed at Company level.

For other financial assets, the Company assesses and manages credit risk based on internal control and credit management system.

The finance function consists of a separate team who assess and maintain an internal credit management system. Internal credit control and
management is performed on a Company basis for each class of financial instruments with different characteristics.

The Company considers whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period. It
considers available reasonable and supportive forward-looking information.

Macroeconomic information (such as regulatory changes, market interest rate or growth rates) are also considered as part of the internal credit
management system.

A default on a financial asset is when the counterparty fails to make payments as per contract. This definition of default is determined by
considering the business environment in which entity operates and other macro-economic factors.

The Company measures the expected credit loss of trade receivables from individual customers based on historical trend, industry
practices and the business environment in which the entity operates. Loss rates are based on actual credit loss experience and past trends.
Based on the historical data, no additional provision for doubtful debts has been considered necessary in respect of trade receivables which
have become due (more than 90 days), since the management has taken suitable measures to recover the said dues and is hopeful of recovery
in due course of time.

The Company maintains exposure in cash and cash equivalents, deposits with banks, investments, and other financial assets. Individual risk
limits are set for each counter-party based on financial position, credit rating and past experience.

Credit limits and concentration of exposures are actively monitored by the Management of the Company.

The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets.

(B) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are
settled by delivering cash or another financial asset.

The Company’s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when
they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation.

Due to the dynamic nature of underlying businesses, the Company maintains flexibility in funding by maintaining availability under
committed credit lines.

Management monitors the Company’s net liquidity position through rolling forecasts on the basis of expected cash flows. In addition,
the company’s liquidity management policy involves projecting cash flows in major currencies and considering the level of liquid assets
necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt
financing plans.

Maturities of financial liabilities

The tables below analyse the Company’s financial liabilities into relevant maturity groupings based on their contractual maturities for:

All non-derivative financial liabilities, and the amounts disclosed in the table are the contractual undiscounted cash flows. Balances due
within 12 months equal their carrying balances as the impact of discounting is not significant.

(C) Market risk

Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and equity prices - will affect the
Company’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control
market risk exposures within acceptable parameters while optimising the return.

The Company is exposed to market risk primarily related to foreign exchange rate risk (currency risk), interest rate risk and market value of
its investments. Thus, the Company’s exposure to market risk is a function of investing and borrowing activities and revenue generating and
operating activities in foreign currencies.

Foreign Currency Risk

Foreign currency opportunities and risks for the Company result from changes in exchange rates and the related changes in the value of
financial instruments (including receivables and payables) in the functional currency (INR).

The Company is exposed to foreign exchange risk arising from foreign currency transactions primarily with respect to US Dollar(USD).

The USD exchange rate has changed substantially in recent periods and may continue to fluctuate substantially in the future. The Company
has put in place a Financial Risk Management Policy to Identify the most effective and efficient ways of managing the currency risks.

Sensitivity analysis

The following table details the Company’s sensitivity to a 25 basis points increase and decrease in the Rupee against the relevant foreign
currencies is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents
management’s assessment of the reasonably possible change in foreign exchange rates. This is mainly attributable to the net exposure
outstanding on receivables or payables in the Company at the end of the reporting period. The sensitivity analysis includes only outstanding
foreign currency denominated monetary items and adjusts their translation at the period end for a 0.25% change in foreign currency rate.
This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and
purchases. In cases where the related foreign exchange fluctuation is capitalised to fixed assets or recognised directly in reserves, the impact
indicated below may affect the Company's income statement over the remaining life of the related fixed assets or the remaining tenure of the
borrowing respectively.

(D) Cash flow and fair value 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
rates. The Company’s exposure to the risk of changes in market rates relates primarily to the Company’s long-term debt obligations with
floating interest rates.

The Company’s approach to managing interest rate risk is to have a judicious mix of borrowed funds with fixed and floating interest
rate obligation. Moreover, the short-term borrowings of the Company do not have a significant fair value or cash flow interest rate risk
due to their short tenure.

The Company is also exposed to interest rate risk on its financial assets that includes fixed deposits, since the same are generally for
short duration, the Company believes it has manageable risk and achieving satisfactory returns. The Company also has long - term fixed
interest bearing assets. However the Company has in place an effective system to manage risk and maximise return.

Interest rate sensitivity

A reasonably possible change of 25 basis points in interest rates at the reporting date would have increased (decreased) profit or loss
by the amounts shown below. This analysis assumes that all other variables remain constant. In cases where the related interest rate
risk is capitalised to fixed assets, the impact indicated below may affect the Company's income statement over the remaining life of the
related fixed assets.

41 Financial risk management (Contd..)

Equity Price Risk

The Company’s exposure to price risk arises from investment in mutual funds and classified in the balance sheet as fair value through
profit and loss. Mutual fund investments are susceptible to market price risk, mainly arising from changes in the interest rates or market
yields which may impact the return and value of such investments. However, due to very short tenor of the underlying portfolio in the
liquid schemes, these do not pose any significant price risk.

42 Capital management

The Company's objectives when managing capital are to:

1. safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other
stakeholders, and

2. Maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Company may adjust
the amount of dividends paid to shareholders, return capital to shareholders, issue new shares, reduce debt or sell assets.

44 Financial instruments

The details of material accounting policies, including criteria for recognition, the basis of measurement and the basis on which income and
expenditure are recognised, in respect of each class of financial asset, financial liability and equity instrument are disclosed below and in Note 1.

A. Calculation of fair values

The fair values of the financial assets and liabilities are defined as the price that would be received to sell an asset or paid to transfer a liability

in an orderly transaction between market participants at the measurement date. The following methods and assumptions were used to estimate

the fair values of financial instruments:

i The fair value of the long-term borrowings carrying floating-rate of interest is not impacted due to interest rate changes and will not be
significantly different from their carrying amounts as there is no significant change in the under-lying credit risk of the Company (since
the date of inception of the loans).

ii Cash and cash equivalents, trade receivables, investments in term deposits, other financial assets, trade payables, and other financial
liabilities have fair values that approximate to their carrying amounts due to their short-term nature.

Financial Assets and Liabilities

The accounting classification of each category of financial instruments, and their carrying amounts are set out as below:

c. Fair value hierarchy

The Company uses the following hierarchy for determining and/or disclosing the fair value offinancial instruments by valuation techniques:
The categories used are as follows:

• Level 1: It includes financial instruments measured using quoted prices and the mutual funds are measured using the closing Net
Asset Value (NAV).

• Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques
which maximise the use of observable market data and rely as little as possible on entity specific estimates. If all significant inputs
required to fair value an instrument are observable, the instrument is included in level 2.

• Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs).

The below table summarises the categories of financial assets and liabilities as at March 31, 2026 and March 31, 2025 measured
at fair value:

46 (a) The Income Tax Department (“the Department”) conducted proceedings under Section 132 of the Income-tax Act, 1961 (“the search”)

on the Company in December 2024 and no assets of the Company were seized pursuant to the said search.

(b) During the previous quarter, the Company has received a notice dated 04 September 2025 from the Income Tax Department under
Section 158BC of the Income-tax Act, 1961, requiring it to prepare a true and correct return of undisclosed income for the block period
01 April 2018 to 10 February 2025 in the prescribed form and manner as per Rule 12AE of the Income-tax Rules, 1962. The Company
filed the income tax return for the said block period on 03 November 2025, assessing and depositing tax of H0.18 crores The assessment
proceedings in this regard are pending before the Department.

Further, during the previous quarter, the Company has received notice under section 142(1) of the Income-tax Act, 1961, seeking certain
details / documents / information, which have since been duly submitted to the Department.

Pending finalisation of the assessment proceedings, the impact of these matters on the financial results and the adjustments, if any, required
to the financial information presented in the Statement are presently not ascertainable. Based on the facts currently available, legal advice
obtained, and after considering all available records, the management believes that the Company has complied with applicable laws and
regulations and accordingly, the outcome of the assessment proceedings is not expected to have any material impact on the Company’s
financial position.

47 On 21 November 2025, the Government of India notified the four Labour Codes - the Code on Wages, 2019, the Industrial Relations Code,
2020, the Code on Social Security, 2020 and the Occupational Safety, Health and Working Conditions Code, 2020 - consolidating 29 existing
Labour laws. The Ministry of Labour & Employment has also published draft Central Rules and FAQs in this regard.

The Company has assessed and accounted for the incremental impact of these changes based on the currently ascertainable position (pending
issuance of state-wise rules and other clarifications), consistent with the guidance issued by the Institute of Chartered Accountants of India.

The incremental impact resulting from these changes amounts to H 0.60 crores (Gratuity: H 0.39 crores and Leave Encashment: H 0.21 crores). The
Company continues to monitor the finalisation of Central/State Rules and clarifications from the Government on other aspects of the Labour Codes
and shall recognise appropriate accounting impact for any further impact, as and when required.

48 (A) Details of Benami Property held: There are no proceedings which have been initiated or pending against the Company for holding any

benami property under the Benami Transactions (Prohibition) Act, 1988, as amended, and rules made thereunder.

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

(C) Details of Crypto Currency or Virtual Currency: The Company has not traded or invested in Crypto currency or Virtual Currency during
the financial year.

(D) Undisclosed Income: The Company does not have any transactions 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). Also, there are nil previously unrecorded income and related assets.

(E) Relationship with Struck off Companies: During the year, the Company does not have any transactions with the companies struck off
under Section 248 of Companies Act, 2013 or Section 560 of the Companies Act, 1956.

48 (Contd..)

(F) The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind
of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in
writing or otherwise) that the Intermediary shall:

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

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

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

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

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

(H) The Company has not been declared as wilful defaulter by any bank or financial institution or any other lender.

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

49 The figures for the previous periods have been regrouped/reclassified, wherever considered necessary, to conform to the current period
classification.