Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a
past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the
obligation and a reliable estimate can be made of the amount of the obligation. When the Company expects some
or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is recognised
as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is
presented in the statement of profit and loss net of any reimbursement.

(xiii) Non-Current Asset held for sale

The Company classifies non-current assets and disposal groups as held for sale/ distribution to owners if their
carrying amounts will be recovered principally through a sale/ distribution rather than through continuing use.
Actions required to complete the sale/ distribution should indicate that it is unlikely that significant changes to
the sale/ distribution will be made or that the decision to sell/ distribute will be withdrawn. Management must be
committed to the sale/ distribution expected within one year from the date of classification.

For these purposes, sale transactions include exchanges of non-current assets for other non-current assets
when the exchange has commercial substance. The criteria for held for sale/ distribution classification is regarded
met only when the assets or disposal group is available for immediate sale/ distribution in its present condition,
subject only to terms that are usual and customary for sales/ distribution of such assets (or disposal groups),
its sale/ distribution is highly probable; and it will genuinely be sold, not abandoned. The Company treats sale/
distribution of the asset or disposal group to be highly probable when:

- The appropriate level of management is committed to a plan to sell the asset (or disposal group),

- An active programme to locate a buyer and complete the plan has been initiated (if applicable),

- The asset (or disposal group) is being actively marketed for sale at a price that is reasonable in relation to
its current fair value,

- The sale is expected to qualify for recognition as a completed sale within one year from the date of
classification, and

- Actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be
made or that the plan will be withdrawn.

Non-current assets held for sale/for distribution to owners and disposal groups are measured at the lower of their
carrying amount and the fair value less costs to sell/distribute. Assets and liabilities classified as held for sale/
distribution are presented separately in the balance sheet.

Property, plant and equipment and intangible assets once classified as held for sale/ distribution to owners are
not depreciated or amortised.

(xiv) Borrowing Costs

Borrowing costs 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 are capitalized as part of the cost of the
respective asset. All other borrowing costs are expensed in the period they occur.

Borrowing costs include interest and amortization of ancillary cost incurred in connection with the arrangement
of borrowing.

(xv) Contingent assets and liabilities

A contingent liability is a present obligation that arises from past events but is not recognized because

- it is not probable that an outflow of resources embodying economic benefits will be required to settle the
obligation, or

- the amount of the obligation cannot be measured with sufficient reliability.

The Company does not recognize a contingent liability but discloses its existence and other required disclosures
in notes to the financial statements, unless the possibility of any outflow in settlement is remote.

A contingent asset is a possible asset that arises from past events the existence of which will be confirmed only
by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the
enterprise.

(xvi) Earnings per share

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

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

(xvii) Employee benefits

The Company's employee benefits mainly include wages, salaries, bonuses, contribution to plans, defined benefit
plans, compensated absences and share-based payments. The employee benefits are recognised in the year in
which the associated services are rendered by the Company employees.

(a) Defined contribution plans

The Company's contribution to provident fund, pension scheme, employee state insurance corporation, etc.
are considered as defined contribution plans and are recognised in profit or loss as and when the services
are rendered by employees. The Company has no further obligations under these plans beyond its periodic
contributions.

(b) Defined benefit plans

For defined benefit plans in the form of gratuity fund, the cost of providing benefits is determined using
the Projected Unit Credit method, with actuarial valuations being carried out at each balance sheet date.
The said plan requires a lump-sum payment to eligible employees (meeting the required vesting service
condition) at retirement or termination of employment, based on a pre-defined formula.

The obligation towards the said benefits is recognised in the balance sheet, at the present value of the
defined benefit obligations less the fair value of plan assets (being the funded portion). The present value
of the said obligation is determined by discounting the estimated future cash outflows, using interest rates
of government bonds.

The interest income / (expense) are calculated by applying the above mentioned discount rate to the plan
assets and defined benefit obligations liability. The net interest income / (expense) on the net defined benefit
liability is recognised in the statement of profit and loss. However, the related re-measurements of the net
defined benefit liability are recognised directly in the other comprehensive income in the period in which
they arise. The said re-measurements comprise of actuarial gains and losses (arising from experience
adjustments and changes in actuarial assumptions), the return on plan assets (excluding interest). Re¬
measurements are not re-classified to the statement of profit and loss in any of the subsequent periods.

(c) Compensated Absences Benefits

The employees of the Company are entitled to compensated absences. Compensated absences benefit
comprises of encashment and availment of leave balances that were earned by the employees over the
period of past employment. The Company provides for the liability towards the said benefit on the basis
of actuarial valuation carried out annually as at the reporting date, using the projected-unit-credit method.
The related re-measurements are recognised in the statement of profit and loss in the period in which they
arise.

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

The Company treats accumulated leave expected to be carried forward beyond twelve months as long
term employee benefit for measurement purpose. Such long term compensated absences are provided for
based on actuarial valuation using the projected unit credit method at the year end. The Company presents
the leave as a current liability in the balance sheet; to the extent it does not have an unconditional right to
defer its settlement for 12 months after the reporting date. Where Company has the unconditional legal
and contractual right to defer the settlement for a period beyond 12 months, the same is presented as non¬
current liability.

(xviii) Research and Development

Revenue Expenditure on research and development is expensed out under respective heads of account in the
year in which it is incurred.

Development expenditure is recognised as an asset at cost less any accumulated amortisation and accumulated
impairment losses. Amortisation of the asset begins when development is complete and asset is available for
use. It is amortised over the period of expected future benefits.

(xix) Segment Reporting

The Company identifies primary segments based on the dominant source, nature of risks and returns and the
internal organisation and management structure. 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 chief
operating decision maker in deciding how to allocate resources and in assessing performance.

The Company's operating segments are established on the basis of those components of the Company that
are evaluated regularly by the Board of Directors (‘the Chief Operating Decision Maker' as defined in Ind AS
108 - Operating Segments). These have been identified taking into account nature of products and services, the
differing risks and returns and the internal business reporting systems. The analysis of geographical segments is
based on the locations of customers.

(xx) 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

The Company recognizes financial assets and financial liabilities when it becomes a party to the contractual
provisions of the instrument. All the financial assets and liabilities are recognized at fair value on initial
recognition, except for trade receivables which are initially measured at transaction price. Transaction costs
that are directly attributable to the acquisition or issue of financial assets and financial liabilities, which
are not at fair value through profit or loss, are added to the fair value on initial recognition. Regular way
purchase and sale of financial assets are accounted for at trade date.

Subsequent measurement

Non-derivative financial instruments

i) Financial assets carried at amortized cost

A financial asset is subsequently measured at amortized cost if it is held within a business model
whose objective is to hold the asset in order to collect contractual cash flows and the contractual
terms of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal outstanding.

ii) Financial assets at fair value through profit or loss

A financial asset which is not classified in any of the above categories are subsequently fair value
through profit or loss.

Investment in Subsidiaries and Associates

Investment in Subsidiaries and Associates is carried at deemed cost in the separate financial
statements.

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial
assets) is primarily derecognised when:

- The rights to receive cash flows from the asset have expired, or

- The Company has transferred its rights to receive cash flows from the asset or has assumed
an obligation to pay the received cash flows in full without material delay to a third party under
a ‘pass-through' arrangement; and either (a) the Company has transferred substantially all
the risks and rewards of the asset, or (b) the Company has neither transferred nor retained
substantially all the risks and rewards of the asset, but has transferred control of the asset.

(b) Financial liabilities

Financial liabilities are subsequently carried at amortized cost using the effective interest method, except
for contingent consideration recognized in a business combination which is subsequently measured at fair
value through profit or loss. For trade and other payables maturing within one year from the balance sheet
date, the carrying amounts approximate the fair value due to the short maturity of these instruments.

i) Financial guarantee contracts

Financial guarantee contracts issued by the Company are those contracts that require a payment
to be made to reimburse the holder 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 recognised 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 and the
amount recognised less cumulative amortization.

ii) Borrowings

On initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised
cost using the EIR method. Gains and losses are recognised in profit or loss when the liabilities are
derecognised as well as through the EIR amortisation process.

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

(c) Derecognition of financial instruments

The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial
asset expire or it transfers the financial asset and the transfer qualifies for derecognition under Ind AS 109.
A financial liability (or a part of the financial liability) is derecognized when the obligation specified in the
contract is discharged or cancelled or expired.

(d) Fair value of financial instrument

In determining the fair value of its financial instruments, the Company uses a variety of methods and
assumptions that are based on market conditions and risks existing at each reporting date. The methods
used to determine fair value include discounted cash flow analysis, available quoted market prices and
dealer quotes. All methods of assessing fair value result in general approximation of value, and such value
may never actually be realized.

For all other financial instruments the carrying amounts approximate fair value due to the short maturity of
those instruments.

(e) Impairment of financial assets

The Company recognizes loss allowances using the expected credit loss (ECL) model for the financial
assets which are not fair valued through profit or loss. Loss allowance for trade receivables with no
significant financing component is measured at an amount equal to lifetime ECL. The amount of expected
credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to the amount
that is required to be recognized as an impairment gain or loss in statement of profit or loss.

(f) Reclassification

The Company determines classification of financial assets and liabilities on initial recognition. After initial
recognition, no reclassification is made for financial assets which are equity instruments and financial
liabilities. For financial assets which are debt instruments, a reclassification is made only if there is a
change in the business model for managing those assets. Changes to the business model are expected to
be infrequent. The Company's senior management determines change in the business model as a result of
external or internal changes which are significant to the Company's operations. Such changes are evident
to external parties. A change in the business model occurs when the Company either begins or ceases to
perform an activity that is significant to its operations. If the Company reclassifies financial assets, it applies
the reclassification prospectively from the reclassification date which is the first day of the immediately next
reporting period following the change in business model. The Company does not restate any previously
recognised gains, losses (including impairment gains or losses) or interest.

(g) Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the standalone balance
sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention
to settle on a net basis, to realise the assets and settle the liabilities simultaneously.

(xxi) Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits
and liquid fund investments with an original maturity of three months or less, which are subject to an insignificant
risk of changes in value.

(xxii) Dividend

The Company recognises a liability to make distributions to equity holders of the Company when the distribution
is authorised and the distribution is no longer at the discretion of the Company. As per the corporate laws in
India, a distribution is authorised when it is approved by the shareholders. A corresponding amount is recognised
directly in equity.

(xxiii) Business Combinations

Business combinations are accounted for using the acquisition method as prescribed under Ind AS 103 -
Business Combinations. The cost of a business combination is measured as the aggregate of the consideration
transferred, measured at acquisition-date fair values, and the amount of any non-controlling interest in the
acquiree. The Company measures non-controlling interest either at fair value or at the proportionate share of the
acquiree's identifiable net assets on a transaction-by-transaction basis.

The identifiable assets acquired, and liabilities assumed in a business combination are recognized at their
acquisition-date fair values. Any goodwill arising from the business combination is initially measured as the
excess of the aggregate of the consideration transferred, amount of non-controlling interest, and the fair
value of any previously held equity interest in the acquiree over the net identifiable assets acquired. If the
aggregate consideration is lower than the fair value of net assets acquired, the difference is recognized in Other
Comprehensive Income and accumulated in Capital Reserve, subject to reassessment.

Acquisition-related costs are expensed in the period in which the costs are incurred and the services are received.

Business combinations involving entities or businesses under common control are accounted for using the
pooling of interests method, whereby the assets and liabilities of the combining entities are reflected at their
carrying amounts, and no goodwill is recognized. The difference, if any, between the consideration paid and the
net assets acquired is recorded in capital reserve.

(xxiv) Events after the reporting period

If the Company receives information after the reporting period, but prior to the date of approved for issue, about
conditions that existed at the end of the reporting period, it will assess whether the information affects the
amounts that it recognises in its separate financial statements. The Company will adjust the amounts recognised

in its financial statements to reflect any adjusting events after the reporting period and update the disclosures that
relate to those conditions in light of the new information. For non-adjusting events after the reporting period, the
Company will not change the amounts recognised in its separate financial statements but will disclose the nature
of the non-adjusting event and an estimate of its financial effect, or a statement that such an estimate cannot be
made, if applicable.

(xxv) Reciprocal tariff

The management considering the relevant events after the reporting date has evaluated the likely impact of
prevailing uncertainty relating to imposition or enhancement of reciprocal tariffs and believes that there are no
material impact on the financial statement of the Company for the year ended March 31, 2026, however, the
management will continue to monitor the situation from the perspective of potential impact of the operations of
the Company.

2.3 Significant accounting judgements, estimates and assumptions

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

(a) Contingencies

Contingent liabilities may arise from the ordinary course of business in relation to claims against the Company,
including legal, contractor, land access and other claims. By their nature, contingencies will be resolved only
when one or more uncertain future events occur or fail to occur. The assessment of the existence, and potential
quantum, of contingencies inherently involves the exercise of significant judgments and the use of estimates
regarding the outcome of future events.

(b) Impairment of non-financial assets

Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount,
which is the higher of its fair value less costs to sell and its value in use. In determining fair value less costs
of disposal, recent market transactions are taken into account. If no such transactions can be identified, an
appropriate valuation method is used. The value in use calculation is based on a DCF model. The cash flows are
derived from the budget for the next five years and do not include restructuring activities that the Company is not
yet committed to or significant future investments that will enhance the asset's performance of the CGU being
tested. The recoverable amount is sensitive to the discount rate used for the DCF model as well as the expected
future cash-inflows and the growth rate used for extrapolation purposes. These estimates are most relevant to
goodwill and other intangibles with indefinite useful lives recognised by the Company.

(c) Taxes

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

(d) Defined benefit plans (gratuity benefits)

The cost of the defined benefit gratuity plan and other post-employment medical benefits and the present value
of the gratuity 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.

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

Further details about gratuity obligations are given in note 37.

(e) Fair value measurement of 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.

(f) Useful life of Property, plant and equipment

The management estimates the useful life and residual value of property, plant and equipment based on technical
evaluation. These assumptions are reviewed at each reporting date.

There are no restrictions over the title of the Company's intangible assets, nor are any intangible assets pledged as security
for liabilities.

*During the previous year, the Company had acquired brand ‘MAWANA', which includes all associated trademarks, related
marks, and copyrights for a total consideration of Rs. 5.75 crore. The acquisition was made from a related party, based
on an independent fair valuation carried out by a qualified external valuer. The acquisition had been completed and the
‘Assignment Deed' had been signed on December 31,2024. The Company had paid stamp duty of Rs. 0.23 crore on the
above said transaction.

The acquired brand is expected to contribute significantly to the Company's operations, given its strong market recognition
and association with quality in the relevant product segments. The management has evaluated the economic benefits and
strategic relevance of the brand and has assessed that it has an indefinite useful life, owing to the following factors:

- The brand is well-established and continues to enjoy a strong market presence.

- There is no foreseeable limit to the period over which the brand is expected to generate net cash inflows.

- The Company had the intention and ability to continue using the brand indefinitely.

In accordance with Ind AS 38 - Intangible Assets, the brand has not been amortized. Instead it is tested for impairment
annually. The asset will continue to be reviewed regularly to confirm that the assessment of an indefinite useful life remains
appropriate.

Impairment testing for intangible assets with indefinite useful lives has been carried out considering their recoverable
amounts which, inter-alia, includes estimation of their value-in-use based on management projections.

Based on the above assessment, no impairment has been recognised during the year. Further, the Company has also
performed sensitivity analysis around the base assumptions considered at the time of acquisition and has concluded that
there are no reasonably possible changes to key assumptions that would cause the carrying amount of the aforesaid assets
to exceed their recoverable values.

5. Right-of-use assets

The Company has lease contracts for registered office and corporate office used in its operations. Generally, the Company
is restricted from assigning and subleasing the leased assets. The Company also has certain leases of assets with lease
terms of 12 months or less. The Company applies the short-term leases recognition exemptions for these leases other than
leases from related parties.

b) Terms, rights and restrictions attached to equity shares:

The Company has only one class of equity shares having a par value of Rs. 10 per share. Each share holder of
equity shares is entitled to one vote per share. Each holder of equity shares have a right to receive per share dividend
declared by the Company. In event of liquidation of the Company, holder of equity shares will be entitled to receive
remaining assets of the Company, after distribution of all preferential amount. The distribution will be in proportion to
the number of equity shares held by the shareholders.

c) Detail of interim dividend and final dividend

During the current year, the shareholders at the Annual General Meeting held on June 28, 2025 approved a final
dividend of 10% on equity shares (Rs.1.00 per equity share of Rs.10 each) aggregating to Rs. 3.91 crore for the
financial year ended March 31, 2025, which was deposited with a scheduled bank within the prescribed time. The
Company had also paid an interim dividend of 30% on equity shares (Rs. 3.00 per equity share of Rs. 10 each)
aggregating to Rs. 11.72 crore during the financial year ended March 31,2025.

¹On October 11,2024, the Company completed the sale of its entire shareholding in its wholly owned subsidiary, Siel
Infrastructure and Estate Developers Private Limited (“Siel IED”). Consequently, the Company initiated the process for
reclassification of 1,192 equity shares held by Siel IED from the Promoter Group to Public Shareholding, in accordance
with Regulation 31A of the SEBI (LODR) Regulations, 2015. The matter was also examined by SEBI under Regulation
31, and the Company had duly provided necessary clarifications. Subsequently, the Company received approval from
SEBI for the said reclassification on December 08, 2025.

Nature and Purpose of reserve

a. Securities premium reserve

Securities premium reserve is used to record the premium on issue of shares. The reserve can be utilised only for
limited purposes such as issuance of bonus shares in accordance with the provisions of the Companies Act, 2013.

b. Capital redemption reserve

Capital redemption reserve (CRR) is used to record the amount equal to the nominal value of equity shares buy back
or redemption of preference shares. As per provisions of the Companies Act, 2013, CRR can be utilised only for paying
up unissued shares of the Company to be issued to members of the Company as fully paid bonus shares.

c. Capital reserve

Capital reserve includes :

a. Rs. 99.15 crore representing the extinguishment of the debts of erstwhile Mawana Sugars Limited (MSL), which
got discharged pursuant to the surplus arising on sale of shares of Shivajimarg Properties Limited and,

b. Rs. 3.87 crore representing the extinguishment of preference share capital.

d. 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.

e. Storage fund for molasses account

As per Rule 3(1) of UP Sheera Niyantran Niyamawali, 1974, Molasses Storage Fund is created from the sale price of
molasses and shall be utilized for the purpose of construction, erection and repair & maintenance of adequate storage
facility of Molasses. Also it may be spent on abatement measures for control of pollution and or any other bonafide
development activities which the Controller of molasses considers necessary.

f. Other comprehensive income

Other comprehensive income/(loss) (OCI) represents the balance with respect to re-measurement gains/(losses)
resulting from experience adjustments and changes in actuarial assumptions. These gains/(losses) are recognised
directly in OCI during the period in which they occur.

33 Leases

(a) Lease — as lessee

The Company has lease contracts for registered office and corporate office used in its operations. Generally, the
Company is restricted from assigning and subleasing the leased assets. The Company also has certain leases of
assets with lease terms of 12 months or less. The Company applies the short-term leases recognition exemptions for
these leases, other than lease from related parties.

For maturity analysis of lease liability, refer note 41 Financial risk management framework and policies under maturities
of financial liabilities.

The Company had total cash outflows for leases of Rs. 1.70 crore (March 31,2025 : Rs 1.80 crore). There are no future
cash outflows relating to leases that have not yet commenced.

Payments associated with short-term leases other than leases from related parties are recognised on a straight-line
basis as an expense in statement of profit and loss. Short-term leases are leases with a lease term of 12 months or
less.

(b) Lease — as lessor

The Company has given certain portion of its factory premises under operating leases. The gross carrying amount,
accumulated depreciation and depreciation recognised in the statement of profit and loss in respect of such portion
of the leased premises are not separately identifiable. There is no impairment loss in respect of such premises. No
contingent rent has been recognised in the statement of profit and loss. Lease income is recognised in the statement
of profit and loss under “Other income” (refer note 24).

(iii) The Company has provided bank guarantee amounting to Rs. 0.28 crores to Tecumseh Products India Limited
(TPIL), to whom it had sold the compressor business in an earlier year, in respect of ongoing sales tax litigation
of Rs. 0.16 crore and pending civil case for Rs. 0.12 crore pertaining to the said business.

(iv) During an earlier year, the Company had given a counter indemnity/guarantee in favor of existing directors of
Transiel India Limited (“the Subsidiary”) to protect their interest against any loss/ future liabilities that may arise
after the name of the said subsidiary that has been struck off under the Easy Exit Scheme, 2011.

(v) There are numerous interpretative issues relating to the Supreme Court (SC) judgement on PF, dated February
28, 2019. The Company will make necessary provision on receiving further clarity on the subject.

(vi) During the earlier year, Income Tax department had passed an assessment order for the assessment year 2017¬
18 under Section 143(3) of the Income Tax Act, 1961, wherein the assessing officer had disallowed / added back
certain items resulting into adjustment of brought forward losses/unabsorbed depreciation by Rs. 336.40 crore
under normal provisions of the Income Tax Act. Under Section 115JB (MAT), the assessing officer raised demand
of Rs. 13.90 crore (including interest of Rs. 4.53 crore) and further interest demand on the above demand of Rs.
5.57 crore has been raised. Against the total tax demand of Rs. 19.47 Crore, the Company is carrying provision
of Rs. 14.67 crore (March 31,2025 Rs. 14.67 crore) ((including interest of Rs. 5.45 crore (March 31,2025 Rs.
5.45 crore)).

However, based on legal opinions taken by the Company, additions/demands are not sustainable under the
provisions of the Income Tax Act. An appeal had been filed by the Company in the earlier year against the above
said order with CIT(Appeal) which is under hearing and an application under Section 154 of the Income Tax Act
for the rectification of the said additions/demands has also been filed in an earlier year with the Assessing Officer.
The Company has already deposited (including adjustment of income tax refund of the subsequent years) a sum
of Rs 11.63 crore (March 31,2025 : Rs. 9.26 crore) under protest against the above demand amount.

(vii) During the earlier year, Income Tax department had passed an assessment order for the assessment year 2018¬
19 under Section 143(3) of the Income Tax Act, 1961, wherein the assessing officer had disallowed / added back
certain items resulting into adjustment of brought forward losses/unabsorbed depreciation by Rs. 20.30 crore
under normal provisions of the Income Tax Act. An appeal had been filed by the Company in the earlier year
against the above said order with CIT(Appeal) which is under hearing.

(viii) Other income tax demands for the assessment year 2021-22 amounting to Rs. 0.06 crore (March 31,2025 Rs.
0.06 crore).

(ix) During the current year, the Company received a demand of Rs. 9.50 crores for the period from August
2018 to June 2024 from the Office of Assistant Excise Commissioner, Meerut for deposit of Export Pass
Fees levied on Denatured Spirit under Rule 10 (“Rule”) of the U.P Excise, Import, Export, Transport
and Possession of De-natured Spirit Rules, 1989 read with notification dated March 31, 2004 pursuant
to the decision of Hon'ble Supreme Court dated October 23, 2024 in another matter on the same subject.
The UP Sugar Manufacturers' Association (UPSMA) obtained legal opinions from two legal experts who opined
that the State Government cannot demand any duty for the past period unless fresh legislation is enacted in
accordance with the judgment of the Supreme Court. Based on the legal advice, UPSMA filed a writ petition
challenging the orders for recovery and deposit of import/export pass fees for the transport of denatured
rectified spirit/specially denatured spirit. Similar legal opinion has also been obtained by the Company.
The Hon'ble Court of Allahabad vide an interim order dated July 30, 2025 has allowed the movement of the
trucks containing industrial alcohol subject to proper records and furnishing of indemnity bond with the Excise
Officer of the District. The said arrangement is subject to further orders/final result in the abovesaid writ petition.
Based upon management evaluation and independent legal opinions obtained, the Company believes that no
provision is required in the standalone financial statement in this regard.

b) Defined Benefits Plans

Gratuity (Funded) - In accordance with Ind AS 19, actuarial valuation was done and details of the same are given below:

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

c) Risk exposure
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
cash flow will lead to an actuarial loss or gain depending on the relative values of the assumed salary growth and discount
rate.

Variability in withdrawal rates: If actual withdrawal rates are higher than assumed withdrawal rate assumption, 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.

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.

Liquidity Risk

Employees with high salaries and long durations or those higher in hierarchy, accumulate significant level of benefits. If some
of such employees resign/retire from the company, there can be strain on the cash flows.

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.

Legislative Risk

Legislative risk is the risk of increase in the plan liabilities or reduction in the plan assets due to change in the legislation/
regulation. The government may amend the Code of Social Security, 2020 thus requiring the companies to pay higher
benefits to the employees. This will directly affect the present value of the Defined Benefit Obligation and the same will have
to be recognized immediately in the year when any such amendment is effective.

The sensitivity analysis above has been determined based on the method that extrapolates the impact on defined benefit
obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period.

39 Segment Information

A. Operating Segment

As per Ind AS 108 identification of segment is based on the manner in which the entity's Chief Operating Decision
Makers' (CODM) reviews the business components regularly to make decisions about allocating resources to segment
and in assessing its performance.

The Operating segments of the Company are identified as Sugar, Power and Distillery as the Chief Operating Decision
Maker reviews business performance of the Company on the basis of these segments.

B. Geographical Segment

The Company mainly caters to the domestic market. However, exports/deemed exports of sugar, if any, have been
presented under the geographical segment.

C. Segment accounting policies:

In addition to the material accounting policies applicable to the business segments as set out in note 2 above, the
accounting policies in relation to segment accounting are as under:

i) Segment revenue and expenses:

Segment revenue and expenses are directly attributable to the segments.

ii) Segment assets and liabilities:

Segment assets include all operating assets used by a segment and consist principally of operating cash, debtors,
inventories and property, plant and equipments, net of allowances and provisions which are reported as direct
offsets in the balance sheet. Segment liabilities include all operating liabilities and consist principally of creditors
and accrued liabilities. While most of the assets/ liabilities can be directly attributed to individual segment, the
carrying amount of certain assets/ liabilities pertaining to two or more segments are allocated to the segments
on a reasonable basis.

iii) Inter segment revenues:

Inter segment revenues between operating segments are accounted for at market price. These transactions are
eliminated in consolidation.

The management assessed that cash and cash equivalents, other bank balances, investments, fixed deposits, trade
receivables, trade payables and other current financial liabilities approximate their carrying amounts largely due to the short¬
term maturities of these instruments.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in
a current transaction between willing parties, other than in a forced or liquidation sale.

40 B. Fair Value Hierarchy

All financial instruments for which fair value is recognised or disclosed are categorised within the fair value hierarchy,
described as follows, based on the lowest level input that is insignificant to the fair value measurements as a whole.

Level 1 : Quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2 : Valuation techniques for which the lowest level inputs that has a significant effect on the fair value measurement are
observable, either directly or indirectly.

Level 3 : Valuation techniques for which the lowest level input which has a significant effect on fair value measurement is not
based on observable market data.

The following table provides the fair value measurement hierarchy of the Company's assets and liabilities.

The Company's principal financial liabilities comprise of borrowings, trade payables, other payables, security deposits
received, capital creditors and employee related payables. The main purpose of these financial liabilities is to finance the
Company's operations and to provide guarantees to support its operations. The Company's principal financial assets include
trade and other receivables, and cash and cash equivalent that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company's senior management oversees the
management of these risks. The Company's senior management is responsible to ensure that Company's financial risk
activities which are governed by appropriate policies and procedures and that financial risks are identified, measured and
managed in accordance with the Company's policies and risk objectives. The Board of Directors reviews and agrees policies
for managing each of these risks, which are summarised below.

Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of change in
market price. Market risk comprise of interest rate risk, currency risk and other price risk, such as equity price risk and
commodity risk.

Interest rate risk

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. However, as the Company does not have any outstanding floating rate interest bearing long term and
short term debts at the balance sheet date. Therefore, a change in interest rates on the reporting date would neither affect
profit or loss nor affect equity.

Fair value sensitivity analysis for fixed rate instruments

The Company does not have any fixed rate financial assets and liabilities at fair value through profit and loss. Therefore, a
change in interest rates at the reporting date would neither affect profit or loss not affect equity.

Foreign currency risk

The Company is exposed to foreign exchange risk arising from foreign currency transactions primarily with respect to USD.
Foreign exchange risk arises from future commercial transactions and recognised asset and liabilities denominated in a
currency that is not the Company's functional currency. The Company imports certain materials which exposes it to foreign
currency risk. The Company also exports finished goods which exposes it to foreign currency risk (if any).

Commodity price risk

Sugar industry being cyclical in nature, realisations get adversely affected during downturn. Higher cane price or higher
production than the demand ultimately affect profitability. The Company has mitigated this risk to some extent by well
integrated business model by diversifying into co-generation and distillation, thereby utilizing the by-products. The Company
focuses on being amongst the lowest cost producers in these businesses.

Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading
to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables, security
deposits and others) and from its financing activities, including deposits with banks. Management has a credit policy in place
and the exposure to credit risk is monitored on an ongoing basis. Credit evaluations are performed on all customers requiring
credit over a certain amount.

(i) Trade receivables

Customer credit risk is managed as per the Company's established policy, procedures and control relating to customer
credit risk management. Credit quality of a customer is assessed based on an extensive credit rating scorecard and
individual credit limits are defined in accordance with this assessment. Outstanding customer receivables are regularly
monitored.

An impairment analysis is performed at each reporting date on an individual basis for major customer. The calculation
is based on exchange losses historical data. The maximum exposure to credit risk at the reporting date is the carrying
value of each class of financial assets disclosed below. The Company does not hold collateral as security except for
security deposits from customers. The Company evaluates the concentration of risk with respect to trade receivables
as low on the basis of past default rates of its customers.

Based on the historical data, loss on collection of receivable is not material hence no additional provision considered.

(ii) Financial instruments and cash deposits

Credit risk from balances with banks is managed by the Company's treasury department in accordance with the
Company's policy. Investments of surplus funds are made only with approved counterparties and within credit limits
assigned to each counterparty. Counterparty credit limits are reviewed by the Company's Board of Directors on an
annual basis, and may be updated throughout the year subject to approval of the Company's finance committee.
The limits are set to minimize the concentration of risks and therefore mitigate financial loss through counterparty's
potential failure to make payments.

Liquidity risk

The Company manages its liquidity for working capital requirement to ensure smooth operation of the business.

The Company also ensures the long term funds requirement like capex or otherwise are met through adequate availability
of long term capital (debt/equity).

For the purpose of the Company's capital management, capital includes issued equity capital, share premium and all
other equity reserves attributable to the equity holders of the Company. The primary objective of the Company's capital
management is to maximise 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. To maintain or adjust the capital structure, the Company may adjust the dividend
payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing
ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans
and borrowings less cash and cash equivalents.

In order to achieve this overall objective, the Company's capital management, amongst other things, aims to ensure that it
meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements.
Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings.

No changes were made in the objectives, policies or processes for managing capital during the year ended March 31,2026
and March 31,2025.

43 Pursuant to judgment dated May 10, 1996 passed by the Hon'ble Supreme Court of India in a public interest litigation, the
Company had surrendered 46.58 acres of land to the Delhi Development Authority (‘DDA') for development of green belt and
open spaces as directed by the Court.

DDA leased out some portion of the surrendered land Delhi Metro Rail Corporation (‘DMRC') for a commercial consideration.
The Company challenged the leasing of surrendered land to DMRC before the Hon'ble Supreme Court. Hon'ble Supreme
Court vide its Order dated March 25, 2010 directed that DDA, cannot use the surrendered land for any purpose other than
the specified use and further directed that any consideration received for a commercial use of the surrendered land would
entitle the Company to get fifty percent (50%) of such consideration.

In terms of the above directions of the Hon'ble Supreme Court, the Company had received in earlier years a sum of Rs. 15.92
crore. Since there was delay in making payments, the Company has demanded interest on delayed payments by filing suit
in Delhi High Court which is pending.

44 The Company had executed a Business Transfer Agreement on November 18, 2016 with Indian Potash Limited (IPL) and
sold off its Agreed Assets and Liabilities excluding contingent liabilities of Titawi Sugar Complex (unit) as a going concern
on an ‘AS IS WHERE IS WHAT IS' basis by way of a slump sale. The sale was governed by a Business Transfer Agreement
(BTA) which stipulated completion of certain activities within a certain time frame.

A sum of Rs. 2.10 crore (March 31,2025 Rs. 2.10 crore) is recoverable from IPL, out of which Rs. 2.00 crore (March 31,2025
Rs 2.00 crore) pertains to pending transfer of certain portion of freehold land in the name of IPL and balance of Rs. 0.10
crore (March 31,2025 Rs. 0.10 crore) pertains to other matters. The management expects the same to be recovered in full
post completion of the specified conditions.

47 Pursuant to a favorable order received from Hon'ble High Court of Delhi against an ex-vendor in 2015 and its execution
petition filed in 2021, the Company had received an Arbitration Award of Rs. 2.20 crore during the previous year and included
the same under ‘Other Income'.

48 In view of Hon'ble Allahabad High Court order dated December 21,2017 for stay on the retrospective operation of orders
of UP State Government on reduction in rate of society commission pertaining to earlier years, the Company had provided
differential amount of Rs. 28.55 crore in the books of accounts during earlier years. UP Sugar Mill Association had approached
Hon'ble Supreme Court of India for stay of operation of the said High court order during an earlier year. The matter is pending
before Hon'ble Supreme Court.

49 The Government of India has consolidated 29 existing labour legislations into a unified framework comprising four Labour
Codes, namely the Code on Wages, 2019; the Code on Social Security, 2020; the Industrial Relations Code, 2020; and the
Occupational Safety, Health and Working Conditions Code, 2020 (collectively referred to as the “Codes”). The Codes were
made effective from November 21,2025.

During the year, the Company has assessed the impact of Codes considering restructured compensation of its employees
applicable with effect from April 1,2026 which is consistent with the Labour Codes, rules/draft rules, FAQs & legal opinion
and accordingly, accounted for an impact of Rs. 5.32 crore in the standalone financial statements. Considering materiality
and non-recurring nature of this impact, these have been disclosed as Exceptional items. The Company will continue to
monitor the impact of the rules notified by the Central / State Governments after March 31,2026 and consider the appropriate
accounting effect in the relevant periods, as needed.

50 Recovery Certificates (RC) were issued in the past by the Cane Commissioner for payment of Cane Dues, Society
Commission, interest on delayed cane payments etc. for previous crushing seasons together with collection charges as per
Rules.

The Company had paid all the cane dues to the farmers and challenged the levy of ‘collection charges' before the Hon'ble
High Court of Allahabad by filing writ petitions for some of the years. Hon'ble High Court of Allahabad allowed the writ petitions
for these years and quashed the demand of collection charges by the State Government. In view of the management, the

legal position settled by High Court in this matter has attained finality and the State Government has not challenged it before
any superior court.

However, the demand for collection charges for the years 2012-13 to 2015-16 amounting to Rs. 141.33 crore (Previous
year Rs. 141.33 crore) are still pending. These demands are also liable to be quashed on the same ground as in the earlier
years and Company has initiated necessary process in this regard with the relevant authorities and thus, potential liability is
considered to be remote.

State Government's waiver of interest on delayed cane payments by sugar mills has been involved in legal proceedings
before Hon'ble High Court of Allahabad for sugar season 2012-13 to 2014-15 and a formal demand for payment of any
interest for the said sugar seasons aforementioned, has not been raised. However, as good corporate governance and as
an abundant caution, the Company has disclosed a contingent liability in respect of interest on delayed cane payment of Rs.
479.86 crores upto March 31,2026 (March 31,2025 : Rs. 479.86 crores) under Note 34 (b)(ii), (including an amount of Rs.
144.80 crores (March 31,2025 : Rs. 144.80 crores) based on demand notice from Cane Commissioner of UP for the sugar
season 2012-13 to 2014-15)).

Consequent upon the directions of the Hon'ble High Court to the Cane Commissioner to decide afresh the matter on the
delayed cane payments, Company and the sugar industry has represented to the Cane Commissioner for waiver, which is
yet to be decided by Cane Commissioner. The Company is hopeful to get the waiver from State Government. Based on the
legal review of the facts of this case, possibility of any further liability (including interest thereon) crystalizing is remote and
hence, no provision is considered necessary.

51 As at March 31,2024, the Company held 67,59,801 (33.74%) equity shares in Mawana Foods Private Limited (‘MFPL) and
was an associate company. During the previous year, the Company had purchased balance 1,32,77,049 (66.26%) fully paid-
up equity shares of Rs. 10/- each held by Usha International Limited (UIL) in Mawana Foods Private Limited (MFPL) for a
total consideration of Rs. 2.42 crore. The Share Purchase and the business acquisition had been completed and accordingly,
MFPL had become a wholly owned subsidiary of Mawana Sugars Limited w.e.f. December 31,2024.

Till the year ended March 31,2024, the Company recorded an impairment allowance of Rs. 12.17 crores. Further, based on
the share acquisition price, the Company recognized an additional impairment allowance to the extent of excess carrying
value over its value in use by Rs 1.60 crore in the financial statements and disclosed the same as exceptional item during
the previous year.

52 During the previous year, a committee of independent directors in their meeting dated July 13, 2024 and thereafter on August
31,2024 resolved to sell the equity and preference shares of its subsidiary companies namely SIEL Industrial Estate Limited
(‘Siel IE') and SIEL Infrastructure and Estate Developers Private Limited (‘Siel IED'), along with all their respective assets
and liabilities, on “AS IS WHERE IS” basis.

In relation to the above, the Company had entered into Memorandum of Understanding (MOU) on September 07, 2024 with
M/s Singla Builders and Promoters Limited (‘SBP') for sale of Equity and Preference Shares along with all their respective
assets and liabilities, on “AS IS WHERE IS” for a total consideration of Rs 117.00 crore, including repayment of loans
aggregating to Rs. 9.50 crore given by the Company to Siel IE. The Share Purchase Agreement was signed on October 11,
2024 and consideration was received by the Company during the previous year. The Company derecognised its investments
in the said subsidiaries and recorded a net gain of Rs. 22.99 crore which was disclosed as an exceptional item during the
previous year.

Further, during the tax financial year ended March 31,2013, the Company had sold equity shares of Siel-IE to Siel-IED for
a consideration of Rs. 135.02 crore resulting in profit of Rs. 121.54 crore, However, this profit was not recorded during the
same year in view statutory auditors' qualification. Based on opinions from tax experts and legal precedents, Company has
considered the cost of acquisition of shares of Siel IED at Rs. 135.02 crore for the purpose of determination of tax liability
relating to the above transaction and is determined at Rs. 7.17 crore.

53 The Company sells sugar as per Sugar Sales Mechanism issued by Ministry of Consumer Affairs, Food and Public Distribution
under which monthly sales quota is allocated to sugar mills in the country. As on March 31,2026, the Company is carrying
inventory of sugar of Rs. 695.12 crore (comprising finished goods Rs. 682.75 crore and work in progress Rs. 12.37 crore)
(March 31,2025 Rs. 719.50 crore (comprising finished goods Rs. 705.58 crore and work in progress Rs. 13.92 crore)) with
valuation at lower of cost and net realizable value.

Future net realizable value shall be dependent upon the factors on minimum support price, monthly sale quota and
sugar production in the Country. The Company expects to realise the value at least to the extent stated in the financial
statements.

55 Other Statutory Information

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against
the Company for holding any Benami property under the Benami Transaction (Prohibition) Act, 1988 & rules made
thereunder.

(ii) The Company does not have any transaction with struck off companies under Section 248 of the Companies Act,
2013.

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

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

(v) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign
entities (Intermediaries) with the understanding that the Intermediary shall:

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

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

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

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

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

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

(viii) The Company has not been declared a wilful defaulter by any bank or financial institution or other lender (as defined
under the Companies Act, 2013) or consortium thereof, in accordance with the guidelines on wilful defaulters issued
by the Reserve Bank of India.

56 Based on a legal assessment, the Company has determined that the Company is not required to spend any amount during
the current year pursuant to its Corporate Social Responsibility Policy as required by the Section 135(5) of the Companies
Act, 2013 since it does not have net profits during the last three preceding years owing brought forward excess of expenditure
over income as referred to in Explanation (l) to Section 198 of the Companies Act, 2013.

57 The Company has been sanctioned working capital limits in excess of Rs. five crores in aggregate from a bank during the
year on the basis of security of current assets of the Company. The Company has filed the quarterly returns/statements with
such bank during the year which are in agreement with the books of accounts of the Company.

58 During the current year, pursuant to the approval received from the Board of the Directors of the Company dated August
02, 2025, two land parcels and building thereon having carrying amount of Rs. 6.42 crore have been reclassified as “assets
held for sale,” in accordance with applicable accounting standard i.e. Ind AS 105 “Non-current Assets Held for Sale and
Discontinued Operations”, at the lower of their carrying amount and fair value less costs to sell.

59 The Board of Directors of the Company, at its meeting held on August 02, 2025, approved a Scheme of Arrangement under
Sections 230 and 232 of the Companies Act, 2013, for amalgamation of Mawana Foods Private Limited with the Company.

Pursuant thereto, the Company filed the requisite applications with the Hon'ble National Company Law Tribunal (“NCLT”),
New Delhi Bench. The Hon'ble NCLT, New Delhi Bench, vide its order dated December 18, 2025, approved the First Motion
Application and directed convening of meetings of equity shareholders and unsecured creditors, which have since been duly
completed. The Company has filed the Second Motion Application with the Hon'ble NCLT, and the same is pending for final
approval.

The Scheme shall become effective upon receipt of final sanction from the Hon'ble NCLT and upon filing of the certified true
copy of the NCLT Order with the Registrar of Companies, National Capital Territory of Delhi and Haryana, in accordance with
the provisions of Section 232(5) of the Companies Act, 2013. The standalone financial statements for the year ended March
31,2026 have been prepared without giving effect to the proposed merger, pending completion of the aforesaid approvals
and other compliances.

60 Pursuant to the notification of the Captive and Renewable Energy (CRE) Regulation, 2024 issued by the Uttar Pradesh
Electricity Regulatory Commission (UPERC) on October 17, 2025, a new tariff structure has been implemented with
retrospective effect from April 01,2024. Accordingly, the Company has during the current financial year recognized differential
revenue for the period from April 01,2024 to September 30, 2025 amounting to Rs. 5.05 crore and has included the same
under “Power” segment revenue.

61 The Company has used SAP S/4 Hana accounting software for maintaining its books of accounts which has a feature of
recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded
in the software, except that audit trail feature is not enabled for certain changes that can be made using certain privileged/
administrative access rights. Further, no instance of audit trail feature being tampered with was noted in respect of accounting
software where the audit trail has been enabled. Additionally, the audit trail of prior year has been preserved by the Company
as per the statutory requirements for record retention to the extent it was enabled and recorded in the prior year.