q. Provisions, contingent liabilities and
contingent assets

Provisions are recognized when the Company has a
present (legal or constructive) obligation as a result of
past events, for which it is probable that an outflow of
resources will be required to settle the obligation and a
reliable estimate of the amount can be made. Provisions
required to settle are reviewed regularly and are adjusted
where necessary to reflect the current best estimates of

the obligation. Provisions are discounted to their present
values, where the time value of money is material.

Contingent liability is disclosed unless the likelihood of
an outflow of resources is remote and there is a possible
obligation or a present obligation that may, but probably
will not, require an outflow of resources.

Contingent assets are disclosed only when inflow of
economic benefits therefrom is probable and recognized
only when realization of income is virtually certain.

r. Borrowing costs

Borrowing cost includes interest and other costs
incurred in connection with the borrowing of funds and
charged to statement of profit and loss on the basis of
EIR method.

Borrowing costs directly attributable to the acquisition,
construction or production of a qualifying asset are
capitalised during the period of time that is necessary
to complete and prepare the asset for its intended use
or sale. All other borrowing costs are expensed in the
period in which they are incurred and reported in finance
costs (refer note 29).

s. Other income

Interest income is recognised using the EIR method. The
effective interest rate is the rate that exactly discounts
estimated future cash receipts through the expected
life of the financial asset to the gross carrying amount
of a financial asset. When calculating the effective
interest rate, the Company estimates the expected cash
flows by considering all the contractual terms of the
financial instrument but does not consider the expected
credit losses.

t. Government grants

Government grants are recognised at fair value where
there is reasonable assurance that the grant will be
received and all attached conditions will be complied
with. When the grant relates to an expense item, it is
recognised as income on a systematic basis over the
periods that the related costs, for which it is intended to
compensate, are expensed.

Government grants related to assets, including non¬
monetary grants recorded at fair value, are treated as
deferred income and are recognized and credited in the
Statement of Profit and Loss on a systematic and rational
basis over the estimated useful life of the related asset.

u. Foreign currency

Functional and presentation currency

The financial statements have been prepared and
presented in Indian Rupees (^), which is the Company’s
functional and presentation currency.

Transactions and balances

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

Foreign currency monetary items outstanding at the
balance sheet date are converted to functional currency
using the closing rate. Non-monetary items denominated
in a foreign currency which are carried at historical cost
are reported using the exchange rate at the date of
the transaction.

Exchange differences arising on monetary items on
settlement, or restatement as at reporting date, at rates
different from those at which they were initially recorded,
are recognized in the statement of profit and loss in the
period/year in which they arise.

v. Cash and cash equivalents

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

w. Segment reporting

Operating segments are reported in a manner
consistent with the internal reporting provided to
the Chief Operating Decision Maker (‘CODM’). The
Managing Directors and Chief Financial Officer of the
Company has been identified as CODMs and they are
responsible for allocating the resources, assess the
financial performance and position of the Company and
makes strategic decisions. Refer note 39 for segment
information presented.

x. Earnings per share

Basic earnings per share is calculated by dividing the
net profit or loss for the period attributable to equity
shareholders (after deducting attributable taxes) by the
weighted average number of equity shares outstanding
during the period. The weighted average number of
equity shares outstanding during the period is adjusted
for events including a bonus issue or share split.

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 are adjusted for the
effects of all dilutive potential equity shares.

y. Dividend distributions

The Company recognizes a liability to make the payment
of dividend to owners of equity, 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 authorized when it is approved by
the shareholders. A corresponding amount is recognised
directly in ‘Other equity’.

z. Investment in subsidiary

The investment in subsidiary is carried at cost as per
Ind AS 27. The Company regardless of the nature of its
involvement with an entity (the investee), determines
whether it is a parent by assessing whether it controls
the investee. The Company controls an investee when
it is exposed, or has rights, to variable returns from its
involvement with the investee and has the ability to affect
those returns through its power over the investee. Thus,
the Company controls an investee if and only if it has all
the following:

• power over the investee;

• exposure, or rights, to variable returns from its
involvement with the investee and;

• the ability to use its power over the investee to affect
the amount of the returns.

aa. Investment in joint venture

A joint venture a type of joint arrangement whereby
the parties that have joint control of the arrangement
have rights to the net assets of the joint venture. Joint
control is a contractually agreed sharing of control of an
arrangement, which exists only when decision about
the relevant activities require the unanimous consent of
the parties sharing control. The carrying amount of the
investment in joint venture is stated at cost.

bb. Events after the reporting period

I f 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 standalone financial
statements. The Company will adjust the amounts
recognised in its standalone financial statements to
reflect any adjusting events after the reporting period and
update the disclosures that relate to those conditions in

light of the new information. For non-adjusting events
after the reporting period, the Company will not change
the amounts recognised in its standalone financial
statements, but will disclose the nature of the non¬
adjusting event and an estimate of its financial effect,
or a statement that such an estimate cannot be made,
if applicable.

cc. Application of new standards and
amendments

The Company applied for the first-time certain standards
and amendments, which are effective for annual periods
beginning on or after April 1, 2025.

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

The Ministry of Corporate Affairs (‘MCA’) notified the
Companies (Indian Accounting Standards) Amendment
Rules, 2025, which amend Ind AS 21, The Effects of
Changes in Foreign Exchange Rates to specify how an
entity should assess whether a currency is exchangeable
and how it should determine a spot exchange rate
when exchangeability is lacking. The amendments also
require disclosure of information that enables users of its
financial statements to understand how the currency not
being exchangeable into the other currency affects, or
is expected to affect, the entity’s financial performance,
financial position and cash flows. The amendments are
effective for annual reporting periods beginning on or
after April 1, 2025. When applying the amendments, an
entity cannot restate comparative information.

The amendments do not have a material impact on the
Company’s financial statements.

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

MCA via notification dated August 13, 2025 announced
amendments to Ind AS 1, Presentation of Financial
Statements, which elaborate on guidance set out in Ind
AS 1 by:

• clarifying that the right to defer settlement of a liability
for at least 12 months after the reporting period;

a) must have substance, and b) must exist at the
end of the reporting period;

• stating that management’s expectations around
whether the settlement of a liability would be
deferred or not, does not impact the classification
of the liability;

• including requirements for liabilities that can be
settled using an entity’s own instruments; and

• stating that at the reporting date, the entity does not
consider covenants that will need to be complied
with in the future when considering the classification
of the debt as current or non-current.

I n addition, an entity is required to disclose when a
liability arising from a loan agreement is classified as
non-current and the entity’s right to defer settlement is
contingent on compliance with future covenants within
twelve months.

The amendments do not have any impact on the
classification of the Company’s liabilities as at the
balance sheet date.

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

I n August 2025, the MCA notified amendments to
Ind AS 7 Statement of Cash Flows and Ind AS 107
Financial Instruments:

Disclosures to clarify the characteristics of supplier
finance arrangements and require additional disclosure
of such arrangements.

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

As a result of implementing the amendments, the
Company has provided additional disclosures about
its supplier finance arrangement. Refer to Note 21 and
Note 40.

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

MCA via notification dated August 13, 2025 announced
amendments to Ind AS 12, Income Taxes, which includes:

• a temporary exception to the recognition and
disclosure of deferred taxes arising from the
implementation of the Pillar Two model rules; and

• additional disclosure requirements targeted at
a reporting entity’s exposure to income taxes in
periods in which the Pillar Two Model legislation
is enacted or substantively enacted but not yet
in effect.

The amendments had no impact on the Company’s
standalone financial statements as the Company is not in
scope of the Pillar Two model rules.

dd. New standards and amendments to existing
standards which are issued but are not yet
effective and have not been early adopted by
the Company

Classification of Liabilities as Current or Non-current and
Non-current Liabilities with Covenants - Amendments to
Ind AS 1

Paragraph 74 of Ind AS 1 currently effective for the year
ended March 31, 2026 requires the entity not to classify
the liability as current, if there is a breach of a material
covenant of a long-term loan arrangement on or before
the end of the reporting period with the effect that the
liability becomes payable on demand on the reporting
date, however, the lender agreed, after the reporting
period and before the approval of the standalone
financial statements for issue, not to demand payment as
a consequence of the breach.

MCA vide notification dated August 13, 2025, has
introducedamendmentunderParagraph74 ofIndAS1 which
requires the entity to classify the liability as current under the
aforementionedsituationbecause,attheendofthereporting
period, it does not have the right to defer its settlement for
at least twelve months after that date. Such amendment has
been made effective for annual reporting periods beginning
onorafterApril1,2026retrospectivelyinaccordancewithInd
AS 8.

This amendment is not expected to have a material impact
on the Company’s standalone financial statements.

iii) The Company proposes to setup a manufacturing plant and has been allotted leasehold land of T 419.00 lakh [refer
note 4(a)] and has incurred T 204.18 lakh towards pre-operative expenses. The project is temporarily suspended as
at reporting date. As per the allotment letter, the Company had to commence civil construction within six months
of possession date i.e. June 2022 and start commercial production within two years (moratorium period) from
possession date. However, due to delays in obtaining clearances from authorities, the construction work could not
commence resulting in delay in the project. The Company, in earlier year, further received approval for extension of
the start of commercial production by one year.

The Company in current year and subsequent to the year end, has further filed application with relevant authorities for
extension of the moratorium period with the revised plant configuration. The said application is pending for approval
with relevant authorities.

1 Government grants receivables comprise of interest subvention @ 50% of rate of interest charged by lenders (subject
to maximum of 6%) for loans availed from banks availed under Scheme for extending financial assistance to project
proponents for enhancement of ethanol distillation capacity (‘the Scheme') vide notification dated January 14, 2021.
Interest subvention amounting to T 202.74 lakh (March 31, 2025: T 418.11 lakh) has been reduced from finance cost of
respective term loans (refer note 29).

2 Refer note 40 for disclosure of fair value in respect of financial assets measured at cost and disclosures for financial
risk management.

3 The carrying amounts of other financial assets are considered a reasonable approximation of fair value largely due to
the short-term nature.

1 During the year, the Company initiated a Qualified Institutional Placement (‘QIP’) in accordance with the provisions of
Section 62 of the Companies Act, 2013 read with applicable SEBI regulations. As at year end, the QIP process had
not been completed and is in process. The Company has incurred certain expenses in connection with the proposed
QIP, including fees paid to merchant bankers, legal advisors, and other intermediaries. Since the equity issuance was
not completed at year end, the related costs amounting to T 306.91 lakh (including T 90.00 lakh towards payment to
statutory auditors of the Company) has been carried forward as ‘Deferred share issue expenses’.

2 Refer note 48 for the details of figures regrouped/re-classified during the current year.

ii) There are no debts due by directors or other officers of the Company or any of them either severally or jointly with any
other person or debts due by firms or private companies respectively in which any director is a partner or a director or
a member.

iii) The carrying amounts of trade receivables are considered a reasonable approximation of fair value largely due to the
short-term nature.

iv) Refer note 40 for disclosure of fair value in respect of financial assets measured at cost and disclosures for financial
risk management.

v) Refer note 40 (b) for disclosure of expected credit loss with respect to trade receivables

vi) The concentration of credit risk is very limited due to the fact that the majority of receivable are Government customers
and remaining receivables which are non-government customer is huge and widely dispersed.

vii) The credit period given to customers ranges from 0 to 90 days.

viii) As at March 31, 2026, trade receivables include receivables of T 27.42 lakh (March 31, 2025: Nil) which are subject
to a factoring arrangement by the Company where it has retained significant risks and rewards of receivables. Under
this arrangement, the Company has assigned trade receivables to the Bank in exchange for cash proceeds. The
Company therefore continues to recognise the transferred assets in their entirety in its standalone balance sheet.
Consequently the proceeds received from transfer are recorded as ‘Factored receivables' and classified under
short-term borrowings. The Company considers that the receivables continues to be held as part of ‘held to collect
business model' and hence continues measuring them at amortised cost.

ix) Refer note 8 for details of unbilled revenue.

Notes:

i) There are no repatriation restrictions with regard to cash and cash equivalents as at the end of current and previous
reporting date.

ii) Refer note 40 for disclosure of fair value in respect of financial assets measured at cost and disclosures for financial
risk management.

iii) Refer note 48 for the details of figures regrouped/re-classified during the current year.

(a) During the current year, the Company entered into a new term loan facility with ICICI Bank Limited, carrying an
interest rate of 8.45% and repayable over 96 instalments, the proceeds of which have been utilised for repayment
of the existing term loans in accordance with the terms of sanction.

(b) For part financing of capital expenditure towards setting up a new distillery at West Bengal for enhancement of
ethanol distillation capacity or to set up distillers for producing first generation ethanol from feed stocks such as
cereals, sugarcane, sugar beet etc. The loan had a moratarium of 1 year and repayment started from July 2022
onwards and is repayable in 48 equal instalments.

(c) For part financing of capital expenditure towards setting up a new distillery at Jharkhand and is also approved
under NABARD’s Interest Subvention Scheme for extending financial assistance to project and reimbursement
of cost of enhancement of ethanol distillation capacity or to set up distillers for producing first generation
ethanol from feed stocks such as cereals, sugarcane, sugar beet etc. The loan had a moratarium of 1 year and
repayment started from March 2023 onwards and is repayable in 48 equal instalments.

(d) For part financing of the capital expenditure towards setting up the grains/molasses/cane juice based Ethanol
distillery at Lakhimpur Kheri, Uttar Pradesh and towards the reimbursement of the capital expenditure incurred
by the Company in relation to the Project, not more than 12 months prior to April 19, 2023. The loan had a
moratarium of 1 year and is repayable in 48 equal instalments.

(e) For part financing of the capital expenditure towards setting up the ENA distillation plant of 60 KLPD located
to be established at Lakhimpur Kheri, Uttar Pradesh, towards the reimbursement of the capital expenditure
incurred by the Company in relation to the Project, not more than 12 months prior to May 20, 2024 and any
transaction related expenditure incurred in relation to the facility. The loan had a moratarium of 1 year and is
repayable in 48 equal instalments.

(f) The loan was obtained for capital expenditure. The said loan is a general purpose corporate loan and may be
used for both capital expenditure as well as day to day operations requirement. The loan is a general shad a
moratarium of 6 months and repayment started from September, 2025 onwards and is repayable in 60 equal
monthly instalments.

The above mentioned secured rupee term loans are secured by:

- First pari passu charge by equitable mortgage charge over industrial freehold lands, leasehold lands and factory
building at Behror, Samalkha, West Bengal, Jharkhand, Bihar and Uttar Pradesh.

- First pari passu charge on all movable property, plant and equipment and capital work-in-progress, both
present and future including plant and machinery at Behror, Samalkha, West Bengal, Jharkhand, Bihar and
Uttar Pradesh.

- Second pari passu charge on all current assets of the Company, both present and future.

4 I nterest rate on cash credit facilities ranges from 7.45% - 9.90% p.a (March 31, 2025: 8.15% - 9.25% p.a) and are
secured by:

- First pari passu charge by way of hypothecation of entire current assets but not limited to book debts
and inventories;

- Second pari passu charge on all movable property, plant and equipment and capital work-in-progress, both
present and future including plant and machinery at Behror, Samalkha, West Bengal, Jharkhand, Bihar and
Uttar Pradesh.

- Second pari passu charge by equitable mortgage charge over industrial freehold lands, leasehold lands and
factory building at Behror, Samalkha, West Bengal, Jharkhand, Bihar and Uttar Pradesh.”

5 Factored receivables represents factoring arrangements entered by the Company with recourse for its trade
receivable with Axis Bank which is secured by first charge on trade receivables of the Company. The Company
does not derecognise the receivables from its books since, it does not transfer substantially all the risks and rewards
of ownership of the financial asset (i.e. receivables) and a corresponding liability towards the bank is recognised in
respect of aforementioned amounts so realised by the Company from the banks but yet to be collected by the bank
from the Company’s customers. The carrying amount is a reasonable approximation of fair value of the loan.

6 The Company do not have any charges or satisfaction which is yet to be registered with Registrar of Companies
(ROC) beyond the statutory period.

7 The terms of the sanctioned borrowings require the Company to comply with certain financial covenants, including
total debt to adjusted tangible net worth, total debt to EBITDA, and debt service coverage ratio. The Company was in
compliance with these covenants as at the reporting date.

8 Refer note 48 for the details of figures regrouped/re-classified during the current year.

1 The Company enters into supplier finance arrangements with various finance providers to facilitate the payment of
dues on its behalf to the Company ’s vendors who may elect to factor their invoice through such finance providers.
Under this arrangement, the finance providers settles the invoices owed by the Company to participating vendors,
and the Company repays the finance providers at a later date. The arrangement was initiated by the Company with the
objective of supporting its working capital management. Pursuant to this arrangement, the Company is able to avail
an extended credit over the normal contractual period agreed with the vendors, however, the overall period is still part
of the working capital cycle. Also, as per the other terms of arrangement the Company is not required to pledge any
collateral or has provided any guarantee to secure the transaction nor it has used any credit limit of the Company and
therefore, the economic substance of the transaction is determined to be in nature of operating activity. Accordingly,
the arrangement is considered as Acceptances and the amounts which vendors have received as payment from the
finance providers are presented separately from trade payables on the face of Standalone Balance Sheet.

2 Weighted average interest rate on Acceptance ranges from 6.25% - 7.50% per annum (March 31, 2025: 7.24% -
8.50% per annum).

3 The tenure of these acceptances ranges from 84 days to 180 days (March 31, 2025: 25 days to 180 days) from the
date of draw down.

1 This does not include any fund lying due to be transferred to the Investor Education and Protection Fund.

2 Payable for purchases of property, plant and equipment consists of T 178.39 lakh (March 31, 2025: T 167.33 lakh)
payable towards micro enterprises and small enterprises.

3 Refer note 40 for disclosure of fair values in respect of financial liabilities measured at amortised cost and analysis of
their maturity profiles.

4 Refer note 37 for disclosure of amounts due to related party.

5 The carrying amounts of other financial liabilities are considered a reasonable approximation of fair value largely due
to the short-term nature.

Further, T 27.64 lakh and T 11.12 lakh pertains to financial year 1995-96 and financial year 1996-97 respectively wherein excise department
provided a ratio of use of old and new glass bottles and provided with a penalty for excess of use of old bottles. The case is pending sine
die.

8 The Company received a tax demand of T 68.60 lakh from the Office of Commissioner of Central Tax (CE and GST) on March 31,2021.

An appeal was filed with the Commissioner (Appeals), Panchkula, on February 9, 2023, remanded the case for re-determination of tax
liability. However, the adjudicating authority's revised order on August 31,2023 and maintained the original demand. A further appeal led
to a reduction of the demand to T 12.59 lakh by the Commissioner (Appeals) on December 27, 2023. Basis legal opinion obtained, the
management is confident that ultimately no liability will devolve on the Company and accordingly no provision for any liability has been
made in the standalone financial statements.

9 Consumer claims/suits filed against the Company not acknowledged as debts of T 324.68 lakh (March 31, 2025: T 324.68 lakh) in respect
of sales made by the Company on behalf of brand franchisees. The Company has disclaimed the liability and defending the action. The
Company has been advised by its legal counsel that its position is likely to be upheld in the litigation process and accordingly no provision
for any liability has been made in the standalone financial statements.

Notes:

1 During the year ended March 31, 2023, the Income Tax Department had carried out search and seizure operation at the various premises
of the Company from January 30, 2023 to February 3, 2023 under section 132 of the Income-tax Act, 1961 (‘IT Act'). The Company had
received assessment orders (‘Orders') for the last 10 assessment years (AY 2014-15 to AY 2023-24) in April 2024 which disallowed certain
expenses. The Company has no tax demand for the assessment years 2014-15 to 2020-21 and for the remaining 3 assessment years, the
amount of aggregate tax demand is T 4,093.82 lakh and the Company has paid T 3,043.76 lakh under protest.

The Company evaluated the demand orders after considering all available records and facts known to it, the Company filed an appeal
before Hon'ble Commissioner of Income Tax (Appeals) during the year ended March 31, 2025 against the aforesaid demand orders for all
the assessment years covered by the Orders.

While the uncertainty exists regarding the outcomes of the aforesaid assessment proceedings, the management of the Company has
obtained views from an external legal counsel in relation to its tax position on the aforesaid matters and also conducted an independent
review of documents and information available with it, which supports management contentions. Based on above, the Company believes
that it can succeed in the appeals filed against the aforesaid demand orders and ultimately no liability will devolve on the Company.
Accordingly no provision for any liability has been made in the standalone financial statements.

2 The Company has ongoing proceedings under Income-tax Act, 1961 in respect of income-tax liability arising on account of unexplained
cash deposited during demonetization period under Section 115BBE of Income-tax Act, 1961. The Company has filed an appeal in the
aforesaid matter before Commissioner of Income-tax (Appeals). Basis legal opinion obtained, the management is confident that ultimately
no liability will devolve on the Company and accordingly no provision for any liability has been made in the standalone financial statements.

3 The Company has received a penalty order of T 83.96 lakh for assessment year 2012-13 in relation to disallowance of certain expenses.
The Company believes that the penalty demand is not sustainable, since the aforesaid disallowance was deleted by the Hon'ble Income
Tax Appellate Tribunal. Accordingly, the Company has filed an appeal against the said order before the Commissioner of Income-tax
(Appeals). Based on the merits of the case, the management believes that no material liability is likely to arise in this matter.

4 On June 26, 2020, Directorate General of Goods and Services Tax Intelligence (‘DGGI') carried out search and seizure proceedings at
various premises of the Company. Pursuant to this and during the investigation proceedings, the Company deposited T 3,445.71 lakh
comprising of tax demand of T 2,741.04 lakh, T 450.61 lakh towards interest and T 254.06 lakh towards penalty under protest towards tax
demand which may arise on account of issue regarding classification of one of the item sold by the Company (Animal Feed Supplement).
Subsequently, The Ministry of Finance, Department of Revenue vide its Circular No. 163/19/2021-GST dated October 6, 2021 provided
clarification on the classification of the said item and the Company has started collecting and depositing GST under protest on the said
item from its customers w.e.f October 11,2021. The Company has filed writ petitions on the above classification matter and seeking refund
of the amount deposited and challenging the constitutional validity of imposing GST on the said item before Hon'ble High Court of Delhi.

Proceedings in respect of above matters are in progress before Hon'ble High Court of Delhi and on the basis of legal opinion obtained, the
management is confident that ultimately no liability will devolve on the Company and it will be able to get the refund of GST amount from
the GST Department and accordingly no provision for any liability has been made in the standalone financial statements.

5 During the current year, the proceedings relating to levy of penalty for non-generation of E-way Bill on sale of ENA, as referred to in the
previous year, have been settled. Pursuant to the settlement, an amount of T6.24 lakh has been adjusted against deposit already made
under protest. Accordingly, no further liability subsists in respect of this matter as at March 31, 2026.

6 The Company has ongoing proceedings under Haryana Value Added Tax Act, 2003 in respect of tax liability arising on account of issue
regarding classification of one of the item sold by the Company for the year 2010-11 to 2016-17 in Samalkha involving amount of T 758.44
lakh and for the year 2010-11 to 2012-13 in Hisar involving amount of T 325.57 lakh. The Company has filed appeals against the demand
orders received in respect of these proceedings, which are pending for disposal at various judicial forums. The Company has already filed
an appeal before appropriate authority dated November 14, 2019.

7 Out of T 180.81 lakh above, T 142.05 lakh pertains to financial year 2004-05 to 2009-10 in which Company filed a writ against the
demand raised by the Rajasthan Excise Department under Section 22 and Section 12 of the Rajasthan Excise Act, 1950 and Rules, 1956
of transport permit fee under Section 69 of the Rules for transportation / captive consumption of goods (Rectified Spirits used in the
manufacture of liquor) within the factory premises. These matters are still pending for next hearing.

35 Employee benefit obligations

a) Gratuity -defined benefit plan

I n accordance with the Payment of Gratuity Act, 1972, the Company provides for gratuity, as defined benefit plan. The
gratuity plan provides for a lump sum payment to vested employees at retirement, death while-in-employment or on
termination of employment of an amount equivalent to 15 days salary payable for each completed year of service or part
thereof in excess of 6 months on completion of vested year of employment i.e. five years. The liability of gratuity plan is
provided based on actuarial valuation as at the end of each financial year.

A. Policy for recognizing actuarial gains and losses:

Actuarial gains and losses of defined benefit plan arising from experience adjustments and effects of changes in actuarial
assumptions are immediately recognized in other comprehensive income. The defined benefit plan typically exposes the
Company to actuarial risks such as interest rate risk, longevity risk and salary increase risk.

Interest rate risk

A fall in the discount rate which is linked to the Government security rate will increase the present value of the liability
requiring higher provision.

Longevity risk

Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any
longevity risk.

Salary escalation risk

The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such,
an increase in the salary of the members more than assumed level will increase the plan's liability.

The present value of the defined benefit obligation calculated with the same method (project unit credit) as the defined
benefit obligation recognised in the standalone balance sheet. The sensitivity analyses are based on a change in one
assumption while not changing all other assumptions. This analysis may not be representative of the actual change in the
defined benefit obligation as it is unlikely that the change in any of the assumptions would occur in isolation of one another
as some of the assumptions are correlated. There was no change in the methods and assumptions used in preparing the
sensitivity analysis from prior years.

b) Defined contribution plans

The Company makes monthly contributions aggregating to T 314.39 lakh (March 31, 2025: T 286.94 lakh) at prescribed
rates towards Employee Provident Fund/ Employee Pension Scheme, a fund administered and managed by the
Government of India during the year in the standalone statement of profit and loss.

c) Compensated absences

A. The Company’s employees are entitled for compensated absences, which are allowed to be accumulated and encashed
as per the Company’s rule. The liability of compensated absences, which is non-funded, has been provided based on the
report of independent actuary using “Projected Unit Credit Method”. Accordingly, the Company has made provision for
compensated absences for the year of T 386.23 lakh and accumulated liability is T 358.98 lakh as of March 31, 2026.

39 Segmental reporting

A Segmental information

The operating segment is the level at which discrete financial information is available. Business segments are
identified considering:

the nature of products and services
the differing risks and returns

the internal organisation and management structure, and
the internal financial reporting systems.

In view of the above, the management of the Company has identified following operating segments as below:

i) Manufacturing - Comprises of production of bioethanol, other industrial spirits and by-products etc.

ii) Consumer - Comprise of diverse portfolio of branded alcoholic beverages, including Prestige and Value Spirits,
catering to both premium and mass-market consumer.

B Segment revenue and results

Revenue and expenses directly attributable to segments are reported under each reportable segment. Income and
expenses which are not attributable or allocable to segments are disclosed separately. Pricing between operating
segments are on an arm’s length basis in a manner similar to transactions with third parties.

C Segment assets and liabilities:

Segment assets include Property, plant and equipment, Inventories, Trade receivables and Other current assets to the
extent specifically identifiable to each segment. Other assets and liabilities used in the Company’s business are not
identified to any of the reportable segments, as these are used interchangeably between segments. The management
believes that it is currently not practicable to provide segment disclosures relating to these total assets and liabilities as
allocation of such asset and liabilities would not result in any meaningful segregation. There are no non-current assets
located outside India.

Other notes:

There has been no transfer between Level 1, Level 2 and Level 3 for the year ended March 31, 2026 and March 31,
2025 respectively.

b. Financial risk management

Risk management objectives and policies

The Company’s financial assets majorly comprise of investments, trade receivables,financial assets, and cash and
cash equivalents. The Company’s financial liabilities majorly comprises of borrowings, acceptances, lease liabilities,
trade payables and other financial liabilities.

The Company is primarily exposed to market risk, credit risk and liquidity risk arising out of operations and the use
of financial instruments. The Company’s financial assets and liabilities by category are summarised in Note 7 and 8,
Note 12 to 15, Note 4, Note 18 and Note 22 to 24 .

The Company does not engage in the trading of financial assets for speculative purposes nor does it write options.
The most significant financial risks to which the Company is exposed are described below:

Market risk analysis

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

• Credit risk;

• Liquidity risk;

• Market risk

- Interest rate risk

- Foreign currency risk

The Company’s risk management policies are established to identify and analyse the risks faced by the Company to
set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies are
reviewed regularly to reflect changes in the market conditions and the business activities. The Board of Directors
oversees how management monitors compliance risk management policies and procedures and reviews the
adequacy of the risk management framework in relation to the risk faced by the business.

The Board of Directors has overall responsibility for the establishment and oversight of the risk management
framework. The Board of Directors has established a risk management policy to identify and analyze the risks, to
set appropriate risk limits and controls, and to monitor risk and adherence to limits. Risk management systems are
reviewed periodically to reflect changes in market conditions and the business activities.

Expected credit loss with respect to trade receivables

The Company applies the Ind AS 109 simplified model of recognising lifetime expected credit losses for all trade
receivables as these items do not have a significant financing component.In measuring the expected credit losses,
the trade receivables have been assessed on a collective basis as they possess shared credit risk characteristics.
They have been grouped based on the days past due and also according to the geographical location of customers:

The expected loss rates are based on the historical payment profile for sales as well as the corresponding
historical credit losses during that period. The historical rates are adjusted to reflect current and forwarding looking
macroeconomic factors affecting the customer’s ability to settle the amount outstanding. However, given the short
period exposed to credit risk, the impact of these macroeconomic factors has not been considered significant within
each annual reporting period:

On the above basis the expected credit loss for trade receivables as at March 31, 2026 and March 31, 2025 was
determined as follows:

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to
meet its contractual obligations.

The credit risk in respect of cash balances held with banks and deposits with banks are managed via diversification of
bank deposits, and are only with major reputable banks.

The Company continuously monitors the credit quality of customers. The Company’s policy is to deal only with credit
worthy counterparties. The credit terms range between 0 and 90 days. The credit terms for customers as negotiated
with customers are subject to an internal approval process . The ongoing credit risk is managed through regular
review of ageing analysis, together with credit limits per customer.

The Company has determined that climate-related risks have no significant impact on credit risk exposure and credit
risk management practices because (a) of the short-term nature of credit exposure and (b) given the absence of
recent major climate-related events in the main areas where debtors operate.

Trade receivables consist of a large number of customers in various industries and geographical areas. The Company
does not hold any security on any trade receivables balance at each annual reporting date. In addition, the Company
does not hold any collateral relating to other financial assets at each annual reporting date.

Financial assets are written off (i.e., derecognised) when there is no reasonable expectation of recovery. On failure
to make payments and failure to engage with the Company on alternative payment arrangement amongst other is
considered indicators of no reasonable expectation of recovery.

b. Foreign currency risk exposure

Currency risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes
in foreign exchange rates. Most of the Company’s transactions are carried out in T. Exposures to currency
exchange rates arise from the Company’s overseas operations, which are primarily denominated in US dollars
(‘USD’) . The Company is exposed to the effects of fluctuation in the prevailing foreign currency exchange rates
on its financial position and cash flows. Exposure arises primarily due to exchange rate fluctuations between the
functional currency and other currencies.”

Exposure to foreign currency risk

Foreign currency denominated financial liabilities which expose the Company to currency risk are disclosed
below. The amounts shown are those reported to key management translated into T at the closing rate:

(iii) Market risk

Market risk is the risk that changes in market prices - e.g. interest rate risk and foreign currency risk - will affect the
Company’s income or the value of its holdings of financial instruments. Market risk is attributable to all market risk
sensitive financial instruments including cash and cash equivalents, foreign currency payables. The Company is
exposed to market risk primarily related to foreign currency risk . Thus, the Company’s exposure to market risk is a
function of investing activities and revenue generating and operating activities in foreign currencies.

a. Exposure to interest rate risk

The exposure of the Company’s borrowing to interest rate changes as reported to the management at the end of
the reporting year are as follows:

Sensitivity analysis

The following table details the Company’s sensitivity to a 5% increase in the T against the relevant foreign
currencies. 5% is the rate used in order to determine the sensitivity analysis considering the past trends and
expectation of the management for changes in the foreign currency exchange rate. The sensitivity analysis
includes the outstanding foreign currency denominated monetary items and adjusts their translation at the
period end for a 5% change in foreign currency rates. A positive number below indicates an increase in profit or
equity where the T increases 5% against the relevant currency.

41 Capital management

The Company manages its capital so as to safeguard its ability to continue as a going concern and to optimise returns to
its shareholders. The capital structure is based on management’s judgement of its strategic and day-to-day needs with a
focus on total equity so as to maintain stakeholders’ confidence. The Company monitors capital using a ratio of ‘Net Debt’
to ‘Total Equity’. For this purpose, Net Debt is defined as total borrowings less cash and cash equivalents and other bank
balances. Total equity comprises of equity share capital and other equity. The Company is not subject to any externally
imposed capital requirements. During the year, no significant changes were made in the objectives, policies or processes
relating to the management of the Company’s capital structure.

43 Provisions for litigations

Provisions for litigations has been accrued against customer contracts on account of:

a) non-supply of rectified spirits amounting to T 66.14 lakh (March 31, 2025: T 66.14 lakh);

b) price charged over and above the approved excise price amounting to T 283.00 lakh (March 31, 2025: T 283.00 lakh).
The movement in the provision has been given below:

44 On November 21, 2025, the Government of India notified the four Labour Codes - the Code on Wages, 2019, the Industrial
Relations Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health and Working Conditions
Code, 2020 - consolidating 29 existing labour laws. The Ministry of Labour & Employment published draft Central Rules
and FAQs to enable assessment of the financial impact due to changes in regulations. The Company has assessed the
incremental impact of these changes on the basis of the best information available, consistent with the guidance provided
by the Institute of Chartered Accountants of India in its standalone statement of profit and loss for the year ended March 31,
2026. The Company continues to monitor the finalisation of Central / State Rules and clarifications from the Government
on other aspects of the Labour Code and would provide appropriate accounting effect on the basis of such developments
as needed.

46 Additional regulatory information required by Schedule III to the Companies Act, 2013

i) 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.

ii) The Company has not traded or invested in Crypto currency or virtual currency during the year.

iii) 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.

iv) The Company has not advanced or loaned or invested funds to any other persons or entities, 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.

v) The Company has not received any fund from any persons or entities, 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 to or on behalf of the Ultimate Beneficiaries.

vi) The Company has not been declared wilful defaulter during any of the reporting periods.

vii) Basis the management's assessment, it has been concluded that the Company has made no transactions with
struck-off companies under Section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956.
Further, there are no outstanding balances at balance sheet date with struck-off companies.

Notes:

(a) Other receivables have been reclassified to ‘Other non-current assets’ as disclosed under Note 10.

(b) Bank deposits held as margin money with original maturity exceeding three months but less than twelve months
have been reclassified to ‘Bank balances other than cash and cash equivalents’ as disclosed under Note 14.

(c) Debit balances pertaining to bank accounts with cash credit and overdraft facilities earlier netted off from
borrowings have been reclassified to ‘Cash and Cash Equivalents’, as disclosed under Note 13.

(d) Cash flow from financing activity increased by T 1,330.43 lakh due to reclassification as pointed in (c) above.