(o) Provisions and contingent liabilities

Provisions are recognized when the Company has a present, legal or constructive obligation as a result of
a past event and it is probable that an outflow of resources will be required to settle the obligation and a
reliable estimate of the amount of the obligation can be made. Provisions are determined based on the best
estimate required to settle the obligation at the Balance Sheet date. Provisions are reviewed at each Balance
Sheet date and adjusted to reflect current best estimates.

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 in extremely rare cases where there is a
liability that cannot be recognized because it cannot be measured reliably. The Company does not recognize
a contingent liability but discloses its existence in the financial statements. A disclosure for a contingent
liability is made where there is a possible obligation arising out of past events, the existence of which will
be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly
within the control of the Company or a present obligation arising out of a past event where it is either not
probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot
be made.

(p) Paid up equity

Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction,
net of tax, from the proceeds.

(q) Cash Flow Statement

Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects
of transactions of a non cash nature and deferral or accruals of past or future cash receipts or payments.
The cash flows from regular operating, investing and financing activities of the Company are segregated.

(r) Dividend liability

The Company recognizes a liability to make cash or non-cash distributions to equity holders of the Company
when distribution is authorized and the distribution is no longer at the discretion of the Company. As per the
corporate laws in India, a distribution is authorized when it is approved by the shareholders. A corresponding
amount is recognized directly in equity.

(s) Earnings per share

(i) Basic Earnings per Share

Basic earnings per share is calculated by dividing the net profit for the period attributable to equity
shareholders by the weighted average number of equity shares outstanding during the financial year.
Earnings considered in ascertaining the company's earnings per share is the net profit for the period after
deducting any attributable tax thereto for the period. The weighted average number of equity shares
outstanding during the period and for all periods presented is adjusted for events, such as bonus shares,
other than the conversion of potential equity shares that have changed the number of equity shares
outstanding, without a corresponding change in resources.

(ii) Diluted Earnings per Share

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

1A. Significant Accounting Policies

(a) Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating
decision maker. The chief operating decision maker, who is responsible for allocating resources and assessing
performance of the operating segments, has been identified as the Board of Directors that makes strategic
decisions for the company.

Refer Note 34 for segment information presented.

(b) Foreign currency transaction
Functional and presentation currency

Items included in the standalone financial statements of the company are measured using the currency of the
primary economic environment in which the entity operates ('the functional currency'). The standalone financial
statements are presented in Indian rupee (INR), which is the Company's functional and presentation currency.

Initial Recognition

Foreign currency transactions are recorded in Indian currency, by applying the exchange rate between the Indian
currency and the foreign currency at the date of transaction.

Conversion

Monetary items, designated in foreign currencies are revalued at the rate prevailing on the date of Balance Sheet.
Exchange Differences

Exchange differences arising on the settlement and conversion of foreign currency transactions are recognized
as income or as expenses in the year in which they arise, except in cases where they relate to the acquisition of
qualifying assets, in which cases they were adjusted in the cost of the corresponding asset.

(c) Leases

The determination of whether a contract is (or contains) a lease is based on the substance of the contract at the
inception of the lease. The contract is or contains, a lease if the contract conveys the right to control the use of
an identified asset for a period of time in exchange for consideration.

Company as a Lessee

At the commencement date, a lessee shall recognize a right-of-use asset and a lease liability. A lessee shall measure
the lease liability at the present value of the lease payments that are not paid at that date. The lease payments
shall be discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that rate
cannot be readily determined, the lessee shall use the lessee's incremental borrowing rate.

The Company uses the practical expedient to apply the requirements of Ind AS 116 to a portfolio of leases with
similar characteristics if the effects on the financial statements of applying to the portfolio does not differ materially
from applying the requirement to the individual leases within that portfolio.

However, when the lessee and the lessor each have the right to terminate the lease without permission from
the other party with no more than an insignificant penalty the Company considers that lease to be no longer
enforceable. Also according to Ind AS 116, for leases with a lease term of 12 months or less (short-term leases)
and for leases for which the underlying asset is of low value, the lessee is not required to recognize right-of-use
asset and a lease liability. The Company applies both recognition exemptions.

Right-of-use asset

Right-of-use assets, which are included under property, plant and equipment, are measured at cost less any
accumulated depreciation and if necessary, any accumulated impairment. The cost of a right-of-use asset
comprises the present value of the outstanding lease payments plus any lease payments made at or before the
commencement date less any lease incentives received, any initial direct costs and an estimate of costs to be
incurred in dismantling or removing the underlying asset. In this context, the Company also applies the practical
expedient that the payments for non-lease components are generally recognized as lease payments.

If the lease transfers ownership of the underlying asset to the lessee at the end of the lease term or if the cost of
the right-of-use asset reflects that the lessee will exercise a purchase option, the right-of-use asset is depreciated
to the end of the useful life of the underlying asset. Otherwise, the right-of-use asset is depreciated to the end
of the lease term.

Lease liability

Lease liabilities, which are assigned to financing liabilities, are measured initially at the present value of the lease
payments. Subsequent measurement of a lease liability includes the increase of the carrying amount to reflect
interest on the lease liability and reducing the carrying amount to reflect the lease payments made.

Lease modification

For a lease modification that is not accounted for as a standalone lease, the company accounts for the
re-measurement of the lease liability by making a corresponding adjustment to the right-of-use asset.

Company as Lessor

A lessor shall classify each of its leases as either an operating lease or a finance lease. A lease is classified as a
finance lease if it transfers substantially all the risks and rewards incidental to ownership of an underlying asset.
A lease is classified as an operating lease if it does not transfer substantially all the risks and rewards incidental
to ownership of an underlying asset.

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 to reflect a constant periodic rate of return on
the net investment outstanding in respect of the lease.

Where the Company is a lessor under an operating lease, the asset is capitalized within property, plant and
equipment and depreciated over its useful economic life. However, if there is no reasonable certainty that the
company will obtain possession of the asset upon end of the lease term, the asset is depreciated over the shorter
of the estimated useful life of the asset and the lease term.

Rental income from operating lease is recognized on a straight-line basis over the term of the relevant lease unless
the payments to the lessor are structured to increase in line with expected general inflation to compensate for the
lessor's expected inflationary cost increases or another systematic basis is available. Initial direct costs incurred in

negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognized
over the lease term on the same basis as rental income. Contingent rents are recognized as revenue in the period
in which they are earned.

Effective April 1, 2019, the company adopted Ind AS 116 "Leases" for the first time, using the modified retrospective
transition method, applied to lease contracts that are ongoing as at April 1, 2019.

(d) Employee Benefits

(i) Short-term Employee Benefits

The distinction between short term and long term employee benefits is based on expected timing of settlement
rather than the employee's entitlement benefits. All employee benefits payable within twelve months of rendering
the service are classified as short term benefits. Such benefits include salaries, wages, bonus, short term
compensated absences, awards, ex-gratia, performance pay etc. and are recognized in the period in which the
employee renders the related service.

(ii) Long term Employment Benefits

The employee's long term compensated absences are Company's other long term benefit plans. The present value
of the obligation is determined based on the actuarial valuation using the Projected Unit Credit Method as at the
date of Balance sheet. In case of funded plans, the fair value of plan asset is reduced from the gross obligation,
to recognize the obligation on a net basis.

In regard to other long term employment benefits, the Company recognizes the net total of service costs, net
interest on the net defined benefit liability (asset) and re-measurements of the net defined benefit liability (asset)
in the statement of profit and loss.

Provident Fund

The Company operates single plan for its employees to provide employee benefits in the nature of provident fund.

The Company pays provident fund contributions to publicly administered provident funds as per regulations.
The Company has no further payment obligations once the contributions have been paid. The contributions are
accounted for as defined contribution plans and the contributions are recognized as employee benefit expense
when they are due.

Eligible employees receive benefits from a provident fund, which is a defined benefit plan. Both the employee
and the Company make monthly contributions to the provident fund plan equal to a specified percentage of the
covered employee's salary.

(iii) Termination Benefits

Termination benefits are payable when employment is terminated by the Company before the normal retirement
date or when an employee accepts voluntary redundancy in exchange for these benefits. The Company recognizes
termination benefits at the earlier of the following dates : (a) when the Company can no longer withdraw the
offer of those benefits; and (b) when the entity recognizes costs for a restructuring that is within the scope of
Ind AS 37 and involves the payment of terminations benefits. In the case of an offer made to encourage voluntary
redundancy, the termination benefits are measured based on the number of employees expected to accept the offer.
Benefits falling due more than 12 months after the end of the reporting period are discounted to present value.

(e) Rounding of amounts

All amounts disclosed in these standalone financial statements and notes have been rounded off to the nearest
Million as per the requirement of Schedule III, unless otherwise stated.

2. Material accounting judgements, estimates and assumptions

The preparation of the Company's standalone financial statements requires management to make judgments,
estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the
accompanying disclosures and the disclosure of contingent liabilities. This note provides an overview of the areas
that involve a higher degree of judgments or complexities and of items which are more likely to be materially adjusted
due to estimates and assumptions turning out to be different than those originally assessed. Detailed information
about each of these judgments, estimates and assumptions is mentioned below.

Judgments, estimates and assumptions are continually evaluated. They are based on historical experience and
other factors, including expectations of future events that may have a financial impact on the company and that
are believed to be reasonable under the circumstances.

Estimates and assumptions

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

1. Defined benefit plans

The cost of the defined benefit plan and other post-employment benefits and the present value of such
obligation are determined using actuarial valuations. An actuarial valuation involves making various
assumptions that may differ from actual developments in the future. These include the determination of the
discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation
and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions.
All assumptions are reviewed at each reporting date. The parameter most subject to change is the discount
rate. In determining the appropriate discount rate for plans operated in India, the management considers
the interest rates of government bonds in currencies consistent with the currencies of the post-employment
benefit obligation. The mortality rate is based on Indian Assured Lives Mortality (2012-14) Ultimate. Those
mortality tables tend to change only at interval in response to demographic changes. Future salary increases
and benefit increases are based on expected future inflation rates. Further details about employee benefit
obligations are given in Note 27.

2. Fair value measurement of unquoted financial instruments

When the fair values of financial 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 DCF model. The inputs to these models are taken from observable markets where possible, but
where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include
considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these
factors could affect the reported fair value of financial instruments. See Note 29 for further disclosures.

Refer notes on Investments below :

9.400.000 - 8% Non-Cumulative Redeemable Preference Shares of ' 10/- each fully paid up of Baramati Speciality
Steels Limited are redeemable at the end of 20 years from the date of allotment, i.e. on March 28, 2033, with
an option to the said Company to redeem the said shares in one or more tranches at any time on or after
September 28, 2013.

5.100.000 - 8% Non-Cumulative Redeemable Preference Shares of ' 10/- each fully paid up of Baramati Speciality
Steels Limited are redeemable at the end of 20 years from the date of allotment, i.e. on September 28, 2033,
with an option to the said Company to redeem the said shares in one or more tranches at any time on or after
March 28, 2014.

13.000. 000 - 8% Non-Cumulative Redeemable Preference Shares of ' 10/- each fully paid up of Baramati Speciality
Steels Limited are redeemable at par on the expiry of 20 years from the date of allotment, i.e. on March 23, 2036,
with a call / put option respectively to the said Company as well as the holders of 8% Non-Cumulative Redeemable
Preference Shares, after 6 months from the date of allotment, i.e. after September 23, 2016, by giving one month's
notice to the other party.

20.000. 000 - 8% Non-Cumulative Redeemable Preference Shares of ' 10/- each fully paid up of Baramati Speciality
Steels Limited are redeemable at par on the expiry of 20 years from the date of allotment, i.e. on March 23, 2037,
with a call / put option respectively to the said Company as well as the holders of 8% Non-Cumulative Redeemable
Preference Shares, after 6 months from the date of allotment, i.e. after September 23, 2017, by giving one month's
notice to the other party.

13,984,973 - 7% Cumulative, Optionally Convertible, Non-participating Preference Shares of ' 10/- each, fully paid
up of Kalyani Technoforge Limited allotted on September 6, 2018, carry an option to convert the entire amount
in Equity Shares of Kalyani Technoforge Limited, at the option to be exercised by Kalyani Technoforge Limited.
The Preference Shares which are not converted, are redeemable at the end of 7 years from the date of allotment,
however Kalyani Technoforge Limited can redeem the same after completion of 5 years.

13.200.000 - 7% Cumulative, Optionally Convertible, Non-participating Preference Shares of ' 10/- each, fully paid
up of Kalyani Technoforge Limited allotted on September 27, 2019, carry an option to convert the entire amount
in Equity Shares of Kalyani Technoforge Limited, at the option to be exercised by Kalyani Technoforge Limited.
The Preference Shares which are not converted, are redeemable at the end of 7 years from the date of allotment,
however Kalyani Technoforge Limited can redeem the same after completion of 5 years.

ii) Statutory Reserve Fund

As per Section 45-IC(1) of The Reserve Bank of India Act, 1934, every non-banking financial company shall
create a reserve fund and transfer therein a sum not less than twenty percent of its net profit every year as
disclosed in the profit and loss account and before any dividend is declared.

iii) FVTOCI Equity Investment Reserve

The Company has elected to recognize changes in the fair value of investment in equity shares in other
comprehensive income. These changes are accumulated within the FVTOCI investment reserve within equity.
The Company will transfer amounts from the said reserve to retained earnings when the relevant equity shares
are de-recognized.

iv) Capital Redemption Reserve

Capital redemption reserve has been created on redemption of preference shares out of profits in accordance
with the Companies Act, 2013 (erstwhile the Companies Act, 1956).

B Provident Fund

Defined contribution : The Company also has certain defined contribution plans. Contributions are made
to provident fund in India for worker at the 12% of basic and dearness allowance as per regulations. The
contributions are made to registered provident fund administered by the government. The obligation of the
Company is limited to the amount contributed and it has no further contractual nor any constructive obligation.
The expense recognized during the period towards defined contribution plan is ' 0.037 Million (March 31, 2024
: ' 0.041 Million).

I Risk Exposure

Provision of a defined benefit scheme poses certain risks, some of which are detailed hereunder, as companies
take on certain long term obligations to make future benefit payments.

1) Liability Risks

a. Asset-Liability Mismatch Risk

Risks which arises if there is a mismatch in the duration of the assets relative to the liabilities. By matching
duration with the defined benefit liabilities, the company is successfully able to neutralize valuation
swings caused by interest rate movements. Hence companies are encouraged to adopt asset-liability
management.

b. Discount Rate Risk

Variations in the discount rate used to compute the present value of the liabilities may seem small, but in
practice can have a significant impact on the defined benefit liabilities.

c. Future Salary Escalation and Inflation Risk

Since price inflation and salary growth are linked economically, they are combined for disclosure purposes.
Rising salaries will often result in higher future defined benefit payments resulting in a higher present
value of liabilities especially unexpected salary increases provided at managements discretion may lead
to uncertainties in estimating the increasing risk.

2) Unfunded Plan Risk

This represents unmanaged risk and a growing liability. There is an inherent risk here that the company may
default on paying the benefits in adverse circumstances. Funding the plan removes volatility in company's
financial and also benefit risk through return on the funds made available for the plan.

ii) Valuation process

The finance department of the Company includes a team that performs the valuations of assets and liabilities
required for financial reporting purposes. This team appoints external valuation experts whenever the need
arises for Level 3 fair valuation. This team reports directly to the Chief Financial Officer (CFO). Discussions of
valuation processes and results are held between the CFO and the valuation team at least once every year, in
line with the Company's annual reporting period.

iii) Fair value of financial assets and liabilities measured at amortized cost

The carrying amounts of such financial assets and liabilities are a reasonable approximation of their fair
values.

iv) Fair value measurements using significant unobservable inputs (Level 3)

The following table presents the changes in Level 3 items :

Presented below is a description of the risks (market risk and liquidity risk) together with a sensitivity analysis,
performed annually, of each of these risks based on selected changes in market rates and prices. These analyzes
reflect management's view of changes which are reasonably possible to occur over a one-year period.

I Market Risk

A) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because
of changes in foreign exchange rates. The Company does not have foreign currency transactions and
thereby is not exposed to foreign exchange risk arising from foreign currency transactions.

II Liquidity Risk

Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding through an
adequate amount of committed credit facilities to meet obligations when due and to close out market positions.
Due to the dynamic nature of the underlying businesses, Company treasury maintains flexibility in funding by
maintaining availability under committed credit lines. Management monitors rolling forecasts of the Company's
liquidity position and cash and cash equivalents on the basis of expected cash flows. In addition, the Company's
liquidity management policy involves projecting cash flows and considering the level of liquid assets necessary
to meet these debt financing plans.

i) Maturities of financial liabilities

The tables below analyze the Company's financial liabilities into relevant maturity groupings based on their
contractual maturities :

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating
Decision Maker. The Board of Directors has been identified as the Chief Operating Decision Maker.

The Company is in the business of making investments in group companies, focusing on earning income through
dividends, interest and gains on investment held, which is a single segment in accordance with I nd AS 108 - "Operating
segment" notified pursuant to Companies (Indian Accounting Standards) Rules, 2015 as amended.

All assets are in India.

NOTE 35:

As per the information available with the company, no transactions have been entered with any company struck off
under Section 248 of the Companies Act, 2013 or Section 560 of Companies Act, 1956 during the year.

The Company does not have any benami property held in its name. No proceedings have been initiated on or are
pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988
(45 of 1988) and Rules made thereunder.

The Company has complied with the requirement with respect to number of layers as prescribed under
Section 2(87) of the Companies Act, 2013 read with the Companies (Restriction on number of layers) Rules, 2017.
There is no income surrendered or disclosed as income during the year in tax assessments under the Income Tax
Act, 1961 (such as search or survey), that has not been recorded in the books of account.

Section 2(6) of the Companies Act, 2013 defines Associate Company in relation to another company as a company
in which that other company has a significant influence, but which is not a subsidiary company of the company
having such influence and includes a joint venture company. As per explanation to Section 2(6), significant influence
means control of at least twenty percent of paid-up equity share capital and convertible preference share capital or
of business decisions under an agreement.

The Company holds investments in below mentioned entities which by share ownership are deemed to be Associate
Companies :

However, the Company does not exercise significant influence in any of the above entities, as demonstrated below :

i) The Company does not have any representation on the Board of Directors or corresponding governing body of
the investee.

ii) The Company does not participate in policy making process.

iii) The Company does not have any material transaction with the investee.

iv) The Company does not interchange any managerial personnel.

v) The Company does not provide any essential technical information to the investee.

Accordingly, the above entities have not been considered to be Associate Companies.

NOTE 37

Previous year figures have been regrouped / reclassified wherever necessary to conform with current year's
classification / disclosure.

As per our attached Report of even date

For P G Bhagwat LLP On behalf of the Board of Directors

Chartered Accountants

Firm Registration No.101118W/W100682

Purva Kulkarni Nihal Gupta Shekhar Bhivpathaki Amit B. Kalyani S.G. Joglekar

Partner Company Secretary Chief Executive Officer Chairman Director

Membership No.138855 Membership No.A72038 & Chief Financial Officer DIN : 00089430 DIN : 00073826

Place : Pune Place : Pune

Date : May 27, 2025 Date : May 27, 2025