(n) Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a
past event and it is probable that an outflow of resources, that can be reliably estimated, will be required to settle
such an obligation.

A present obligation that arises from past events where it is either not probable that an outflow of resources will
be required to settle or a reliable estimate of the amount cannot be made, is disclosed as a contingent liability.
Contingent liabilities are also disclosed when there is a possible obligation arising 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 Company.

Claims against the Company where the possibility of any outflow of resources in settlement is remote, are not
disclosed as contingent liabilities.

Contingent assets are not recognised in financial statements since this may result in the recognition of income
that may never be realised. However, when the realisation of income is virtually certain, then the related asset is
not a contingent asset and is recognised.

(o) Borrowing Costs:

Borrowing costs are interest and other costs that the Company incurs in connection with the borrowing of funds
and is measured with reference to the effective interest rate (EIR) applicable to the respective borrowing.

Borrowing costs that are attributable to the acquisition, construction or production of a qualifying asset are
capitalised as part of cost of such asset till such time as the asset is ready for its intended use or sale. A qualifying
asset is an asset that necessarily requires a substantial period of time to get ready for its intended use or sale. All
other borrowing costs are recognised as an expense in the period in which they are incurred.

(p) Segment Reporting - Identification of Segments

An operating segment is a component of the Company that engages in business activities from which it may
earn revenues and incur expenses, whose operating results are regularly reviewed by the company's chief
operating decision maker to make decisions for which discrete financial information is available. Based on the
management approach as defined in Ind AS 108, the chief operating decision maker evaluates the Company's
performance and allocates resources based on an analysis of various performance indicators by business
segments and geographic segments.

(q) Earnings per share
Basic earnings per share

Basic earnings per share is calculated by dividing:

- the profit attributable to owners of the company

- by the weighted average number of equity shares outstanding during the financial year, (adjusted for bonus
elements in equity shares issued during the year)

Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take
into account:

- the after income tax effect of interest and other financing costs associated with dilutive potential equity

- by the weighted average number of equity shares outstanding during the financial year, (adjusted for bonus
elements in equity shares issued during the year)

(r) Cash and cash equivalents

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

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term
deposits, as defined above.

(s) Current/non current classification

The Company presents assets and liabilities in the balance sheet based on current/ non-current classification. An
asset is treated as current when it is:

- Expected to be realised or intended to be sold or consumed in normal operating cycle

- Held primarily for the purpose of trading

- Expected to be realised within twelve months after the reporting period, or

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

All other assets are classified as non-current.

A liability is current when:

- It is expected to be settled in normal operating cycle

- It is held primarily for the purpose of trading

- It is due to be settled within twelve months after the reporting period, or

- There is no unconditional right to defer the settlement of the liability for at least twelve months after the
reporting period

The company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and
cash equivalents. The company has identified twelve months as its operating cycle.

(t) Rounding of amounts

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

3 Significant accounting judgments, estimates and assumptions

The preparation of these financial statements in conformity with the recognition and measurement principles of Ind
AS requires the management of the Company to make estimates and assumptions that affect the reported balances
of assets and liabilities, disclosures relating to contingent liabilities as at the date of the financial statements and the
reported amounts of income and expense for the periods presented.

Critical Estimates and Judgments

(i) Fair value measurement of Financial Instruments

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

(ii) Estimation of net realizable value for inventories

Inventory is stated at the lower of cost and net realizable value (NRV).

NRV for completed inventory is assessed by reference to market conditions and prices existing at the reporting
date and is determined by the Company, based on comparable transactions identified.

(iii) Recoverability of trade receivables

In case of trade receivables, the Company follows the simplified approach permitted by Ind AS 109 - Financial
Instruments for recognition of impairment loss allowance. The application of simplified approach does not
require the Company to track changes in credit risk. The Company calculates the expected credit losses
on trade receivables using a provision matrix on the basis of its historical credit loss experience except for
power receivables.

(iv) Useful lives of property, plant and equipment/intangible assets

The Company reviews the useful life of property, plant and equipment/intangible assets at the end of each
reporting period. This reassessment may result in change in depreciation expense in future periods.

(v) Valuation of deferred tax assets

The Company reviews the carrying amount of deferred tax assets at the end of each reporting period. The policy
for the same has been explained under Note above.

(vi) Defined benefit plans

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.

4 Recent accounting developments and pronouncements :

(i) Ind AS 117 Insurance Contracts

The Ministry of corporate Affairs (MCA) notified the Ind AS 117, Insurance Contracts, vide notification dated 12
August 2024, under the Companies (Indian Accounting Standards) Amendment Rules, 2024, which is effective from
annuaL reporting periods beginning on or after 1 ApriL 2024.

Ind AS 117 Insurance Contracts is a comprehensive new accounting standard for insurance contracts covering
recognition and measurement, presentation and disclosure. Ind AS 117 replaces Ind AS 104 Insurance Contracts.
Ind AS 117 appLies to aLL types of insurance contracts, regardLess of the type of entities that issue them as weLL as to
certain guarantees and financiaL instruments with discretionary participation features; a few scope exceptions wiLL
apply. Ind AS 117 is based on a general model, supplemented by:

Ý A specific adaptation for contracts with direct participation features (the variable fee approach)

Ý A simplified approach (the premium allocation approach) mainly for short-duration contracts

The application of Ind AS 117 had no impact on the Company's standalone financial statements as the Company
has not entered any contracts in the nature of insurance contracts covered under Ind AS 117. "

(ii) Amendment to Ind AS 116 Leases - Lease Liability in a Sale and Leaseback

The MCA notified the Companies (Indian Accounting Standards) Second Amendment Rules, 2024, which amend Ind
AS 116, Leases, with respect to Lease Liability in a Sale and Leaseback.

The amendment specifies the requirements that a seller-lessee uses in measuring the lease liability arising in a sale
and leaseback transaction, to ensure the seller-lessee does not recognise any amount of the gain or loss that relates
to the right of use it retains.

The amendment is effective for annual reporting periods beginning on or after 1 April 2024 and must be applied
retrospectively to sale and leaseback transactions entered into after the date of initial application of Ind AS 116.

The amendment does not have a material impact on the Company's financial statements.

Standards notified but not yet effective

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as issued from time to time. During the year ended March 31, 2025,
MCA has not notified any new standards or amendments to the existing standards applicable to the company.

15. BORROWINGS (contd.)

B. Nature of Securities:

Loan under Sr 1: First Pari Passu Charge on Property, Plant & Equipment of Sameerwadi, Karnataka. Second paripassu on
Current asset of Sugar divn, Sameerwadi, Karnataka.

Loan under Sr 2: First Pari Passu Charge on Property, Plant & Equipment of Sameerwadi, Karnataka. Second paripassu on
Current asset of Distillery divn, Sameerwadi, Karnataka

Loan under Sr 3 & Sr 11: First Pari Passu Charge on Property, Plant & Equipment of Sameerwadi, Karnataka and Second
Pari Passu charge on Current Asset of Sugar Division at Sameerwadi,Karnataka.

Loan under Sr 4: First Pari Passu Charge on Property-Land& Building only at Sakarwadi, Maharashtra and First exclusive
charge on asset of research center at Mahape,Maharashtra. First charge on Power receivables at Sameerwadi, Karnataka

Loan under Sr 5: Exclusive charge on boiler P&M assets, and First paripassu charge on Land and bldg at Sakarwadi unit.

Loan under Sr 6: Second subservient Pari Passu Charge on Property, Plant & Equipment of Sameerwadi, Karnataka and
Second subservient Pari Passu charge on Current Asset of Sugar Division at Sameerwadi, Karnataka.

Loan under Sr 7: First Pari Passu Charge on Property, Plant & Equipment of Sameerwadi, Karnataka. Second paripassu on
Current asset of Sugar and Distillery divn, Sameerwadi, Karnataka

Loan under Sr 8: Second subservient Pari Passu Charge on Property-Land& Building only at Sakarwadi & Boiler equipment
at Sakarwadi, Maharashtra and Second subservient charge on asset of research center at Mahape, Maharashtra. Second
subservient charge on current assets of Sakarwadi, Maharashtra and on Power receivables, Sameerwadi

Loan under Sr 9: Second subservient Pari Passu Charge on Property, Plant & Equipment of Sameerwadi, Karnataka and
Second subservient Pari Passu charge on Current Assets of Sameerwadi unit, Karnataka.

Loan under Sr 10: Second subservient Pari Passu Charge on Property, Plant & Equipment of Sameerwadi, Karnataka and
Second subservient pari passu charge on Current assets of Sameerwadi unit, Karnataka

Loan under Sr 12: First Pari Passu Charge on Property, Plant & Equipment of Sameerwadi, Karnataka and Second Pari
Passu charge on Current Asset of Sugar& Dist Division at Sameerwadi,Karnataka.

Loan under Sr 13: First Pari Passu Charge on Property-Land& Building at Sakarwadi, Maharashtra

Loan under Sr 14: First Pari Passu Charge on Property, Plant & Equipment of Sameerwadi, Karnataka, Exclusive charge on
Plant & Equipment at Sakarwadi funded by bank and Second Pari Passu charge on Current Asset of Sugar& Dist Division
at Sameerwadi,Karnataka.

15. BORROWINGS (contd.)

D. Nature of Security:

* Secured by First Pari Passu charge over current assets of the respective division/unit, both present and future and second
Pari Passu charge on Plant & Equipment of respective division; and Second charge on one Asset of Somaiya Properties
and Investments Pvt Ltd. (SPIPL) (Formerly known as The Godavari Sugar Mills Pvt Ltd ) as a Corporate Guranatee of SPIPL.

Interest for above Cash credit Rupee loans varies from 9.00% to 11.50% (Previous Year 9.50% to 11.25 %)

Interest for above Public deposit varies from 9% to 10% (Previous Year 8.50 % to 9.50% )

E. Movement of Borrowings

This section sets out an analysis of net debt and the movements in net debt for each of the year specified :

(i) Leave Encashment

The leave obligations cover the company's liability for sick and earned leave.

The amount of the provision of INR 292.74 Lakhs for the year ended March 31, 2025 (March 31, 2024: INR 401.85
Lakhs) is presented as current, since the company does not have an unconditional right to defer settlement for any
of these obligations.

(ii) Post Employement obligations

a) Defined benefit plans - Gratuity

The company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees
who are in continuous service for a period of five years are eligible for gratuity. The amount of gratuity payable
on retirement/ termination is the employees last drawn basic salary per month computed proportionately for 15
days salary multiplied by number of years of service.

The gratuity plan is a funded plan and the company makes contributions to recognised funds in India. The
company does not fully fund the liability and maintains a target level of funding to be maintained over a period
of time based on estimations of expected gratuity payments.

I. Council of Scientific & Industrial Research (CSIR)

The Company had taken financial assistance from the Council of Scientific & Industrial Research (CSIR) of INR
485 Lakhs to develop technology for manufacture of Polymer grade Lactic Acid. Before start of the project,
assurance was given about the successful bench scale development and scalability of the process/technology
by CSIR.

The project was not successful, and National Chemical Laboratory (NCL) / CSIR could not demonstrate the
technology to make polymer grade Lactic Acid and the same was accepted by NCL and also a third party
engineering firm appointed by CSIR.

CSIR had demanded the financial assistance back for INR 485 Lakhs principal alongwith Interest INR 544 Lakhs
till March 2014 vide letter dated 11 Aug 2014 . CSIR had filed an Application for appointing Arbitrator before the
Delhi High Court for initiating Arbitration process and the Company's response was that the same is time barred
however the court had passed the judgement appointing Arbitrators . Thereafter the company had filed Special
Leave Petition (SLP) in the Supreme Court. Supreme Court admitting SLP stayed Order of the Delhi High Court
on condition of deposit of INR 100 Lakhs and the company have deposited INR 100 Lakhs during the Financial
year 2019-2020. On 26^th November 2021 Special Leave Petition was dismissed and by subsequent Order dated
17^th December 2021 Company may apply to Arbitrator for refund of deposit. Till then it will be invested in Fixed
Deposit of nationalised banksThe interest amount from March 2014 to March 2025 is not ascertainable due to
unavailability of information.

The company had received communication from CSIR, inviting comments for referring to the Arbritration. The
Company had replied that it will prefer to have the arbitration by a sole arbitrator to be appointed mutually or by
the Delhi International Arbitration Centre. The Company is now, waiting for further communication from CSIR
regarding the proposed arbitrator for its consent.

II National Green Tribunal (NGT)

The Company was directed by Hon'ble NGT to complete bioremediation of affected land and water before
31.12.2019.

The Company filed an application for the extension of time.

The NGT by its Order dated 27.09.2021 had granted extension till 31.12.2023 for completing bioremediation
and further directed CPCB to impose conditions for bioremediation within one month from the date of the
order. Thereupon, CPCB vide its letter dated 15.11.2021 had imposed the certain conditions along with INR 50
Lakhs Bank Guarantee, which the company had complied with. Now, the granted period has expired and the
Company is waiting for the authorities to conduct the survey of the work done and issue it's report for further
course of action.

Besides the Bank guarantee mentioned the company had also made a deposit of INR 5 Lakhs with CPCB and
INR 50 Lakhs with Tahsildar on instruction of NGT on 11.06.2015. Out of this deposit the Tahsildar had incurred
expenses of INR 17 Lakhs during the year 2017-2018 for montoring of project.

On 15^th April 2024, the NGT constituted a committee with a member from MPCB, CPCB and MoEF, and CC to
investigate the allegations of pollution caused by the Company in the application made by Praasad Haribhau
Jadhav & Others in the application filed in December 2022. The committee submitted a report to the NGT dated
26^th August 2024 with it's findings, against which the Company has submitted it's reply dated 16^th November
2024. The NGT has listed the matter for final hearing on 20^th June 2025. As the matter is still under deliberation,
thus, any monetary implication of the same can not be quantified.

III. Sale of Extra Neutral Alcohol (ENA) to Bottling Plant

During F.Y 21-22 the company received notice dated 14^th March 2022 from the office of "Asst Commissioner of
Central Tax ( GST) BIJAPUR", towards GST not paid for ENA supply for the period 07/2007 to 03/2021 and ""Show
Cause"" notice from ""Joint Commissioner of Central Tax & CX., Belagavi"",dated 4^th March 2022 towards GST not
paid for ENA supply for the period 07/2007 to 03/2021. The Company had submitted it's responses dated 20^th
March 2022 and 13^th July 2023 against both notices and was awaiting for further communication from offices.

During the FY 2022-2023 the company had received show cause notice from the office "Commissioner of
Central Tax & CX., Belagavi"", with a demand towards GST of INR 4684 Lakhs for ENA supply for the period July
2017 to March 2021. Against the show cause notice the Company submitted it's response on 26^th March 2023
and was awaiting further communication from the department.

The Company has sold ENA to various customers of IFL (Potable industry) without GST through Karnataka
State Beverages Corporation Ltd (KSBCL) since implementation of GST. The Customers have interpreted that
GST is not applicable to IFL (potable industry) and customers have volunteered and have given undertaking for
reimbursement of any dues that maybe be levied by Government on account of GST if applied on account on
sale of ENA.

Further Government of Karnataka clarified on 19/07/2017 that canalisation of ENA to bottling units for
manufacture of liquor would be outside the purview of the GST.

The matter was referred to GST Council by Indian Sugar Mills Association in July 2017 and thereafter same was
followed up by reminders from time to time, however, in view of difference of opinion, GST Council has referred
the matter to Advocate General of India for his opinion.

On 7^th October 2023, the GST Council recommended that ENA used for manufacture of alcoholic liquor
for human consumption be kept outside applicability of GST and the CBIC vide it's notification no. 17/2024
dated 27^th September 2024, notified 1^st November 2024 as the effective date for exclusion of ENA supplied for
manufacturing alcoholic products (portable industry) from GST. Now, the Company is waiting for clarity from
the Government of Karnataka for the VAT applicable on the sales made of ENA in the aforementioned periods."

However, the Company received an order dated 27^th December 2024 from the office of Additional Commissioner
Central Tax & CX, Belgavi wherein the officer has confirmed the demand of INR 4685 Lakhs and levied an
equivalent penalty of INR 4685 Lakhs as per the GST provisions. The order also has reference to interest being
applicable as per GST provisions, but the same has not been quantified in the order. The Company has filed a
Writ Petition against this order in the Karnataka Highcourt on 10^th March 2025 and vide it's hearing dated 20^th

March 2025 ordered the GST department to not take any action on the Company till the next hearing. No
Hearing has taken place after 20^th March 2025.

IV. Electricity Duty on captive consumption

On 13 April 2015, by notification, the Government of Maharashtra had increased the electricity duty levied on
Captive Power consumed from 30 paise to 120 paise per unit which was challenged by Captive Power Producers
Association before the Bombay High Court. The Bombay High Court vide its Order dated 5.7.2016 restrained the
Govt. from taking any coercive action for recovery against the Petitioner or charging further interest until further
order. Company has made provision of INR 459 Lakhs over the years on account of incremental duty of 90 paise
which is unpaid. Interest on this unpaid amount is not ascertainable.

The Government of Karnataka, had increased the electricity duty levied on Captive consumption to @ 20 paise
on the power generated and on auxiliary consumption to @5 paise with effect from 31.05.2016. Company has
made provision of INR 458 Lakhs over the years on account of incremental duty which is unpaid. Interest on this
unpaid amount is not ascertainable

V. Cross Subsidy Surcharges to HESCOM

For captive use of power, there was a demand notice dated 18^th March 2017 from Assistant Executive Engineer
[Electrical] Hubli Electric supply company (HESCOM) Subdivision Mahalingapur, for INR 590.95 Lakhs towards
Cross Subsidy Surcharges for Imported power from IEX (Indian Energy Exchange) for the period of 2013-2016.

On December 3, 2021, Karnataka Electricity Regulatory Commission (KERC) through common Order announced
that cross subsidy charges are payable as per HT2A tariff, whereby the demand of the company INR 590.95
Lakhs will reduce.

The Company filed a writ petition on February 28, 2022 in the Dharwad High Court; to issue an appropriate writ
order or direction declaring that HESCOM is not authorised to collect cross subsidy surcharge as the HESCOM
does not have license to charge the same under the Electricity Act 2003 or any of the order or regulation passed.

The court had granted interim relief in favour of the Company on dated 2^nd March 2022 . However, impugned
Electricity (amendment) rules 2023 granted the license to HESCOM and render the said writ petition infructuous

The Company has challenged the Electricity Amendment Rules 2023 in the high court of Karnataka vide writ
petition filed on 24.01.2024. The hearing held on 11.03.2024 was adjourned due to a change in the bench next
date of hearing yet to be pronounced.

VI. Custom Duty for import of Denatured Ethyl Alcohol

The company had received a show cause cum demand notice dated 24^th June 2021 for payment of 480 Lakhs
towards differential custom duty on import (Difference between 5% and 2.5%) of Denatured ethyl alcohol.

In July 2017, GST was introduced with a concessional of 2.5% duty. Accordingly, the company had been paying
2.5% duty instead of 5 %.

In February 2021 budget it is declared that alcohol to be imported @ 5% from date of budget with no clarification
for the period GST i.e July 2017 till 2020 for concessional rate of duty. Company had started paying 5% duty
from Feb 2021.

The Customs had challenged that 2.5% duty was applicable for excisable goods and the applicable duty is 5 %.
Hence the differential of 2.5% is applicable for the period July 2017 to February 2021.

Industry had already appealed to the Central Board of Indirect Taxes and Customs (CBIC), Ministry of Finance,
Department of Revenue in November 2020. CBIC had forwarded this matter to Jt Secretary TRU (Tariff Unit). The
Company had received a letter dated 21^st December 2021 from The Office of the Deputy/Assistant Commissioner
of Customs Nashik demanding Bond,as security for 100 % of the Dispute amount ( INR 480 Lacs) and 10% of
the dispute amount as Bank Guarantee for taking up the proceeding further. Accordingly, the company had
submitted the Bond for 100 % for Dispute amount and Bank Guarantee of INR48.00 Lacs.

34. COMMITMENTS AND CONTINGENCIES (contd.)

Dy. Commissioner of Customs, Nashik conducted a personal hearing 27.01.2022 and vide Order No 04/DC/
Customs-Adj/2021-22 dated 28.02.2022 confirmed the demand of INR 480 Lakhs.

The Company filed an appeal before the Commissioner of Customs (Appeal), Nagpur against demand of
INR 480 Lakhs on 22.04.2022 and paid INR 48 Lakhs as amount under dispute as required at the time of filing the
Appeal and submitted the bond for 100% disputed amount.

Commissioner of Customs (Appeal) conducted a personal hearing on 14.03.2023 and vide his order dated
03.05.2023 rejected the appeal.

Aggrieved by Commissioner's order the Company had filed Appeal before CESTAT on 01.08.2023 and is awaiting
further communication."

VII. Income Tax Order for Assessment Year 2021-22

During the financial year 2022-2023 Income Tax scrutiny assessment for assessment year 2021-22 was
completed wherein unusually exorbitant addition of INR 13,218.80 Lakhs was made to the income reported by
the company in it's income tax return and a demand Order of INR 5,730.20 Lakhs including interest was raised
on the Company.

The addition had been made on the technical grounds that the company's sugar recovery is less than 10%,
whereas actual gross recovery of the company was higher and has ignored additional Ethanol produced from
sugar diverted towards Clear Juice, Syrup and B-Heavy Molasses.

Furthermore, the assessing officer did not consider the tax credit available to the company and set-off of the
depreciation losses carried forward from previous year. On rectification by Assistant Commissioner of Income
Tax, the demand reduced to INR 2,754 Lakhs and got a stay on the demand.

The company had filed an Appeal before the Commissioner of Income Tax on 24.01.2023 against the
Assessment Order.

The hearing through video conferencing was held on 21/02/2024 before CIT(A). Thereafter additional submission
were called for which have been made and now Order is awaited."

VIII. Income Tax Order for Assessment Year 2023-24

During the financial year 2024-2025, Income Tax scrutiny assessment for assessment year 2023-24 was
completed wherein an unusually exorbitant addition of INR 10,115.70 Lakhs was made to the income reported
by the company in its income tax return and a demand Order of INR 4,615.68 Lakhs including interest was raised
on the Company.

The addition that has been made for expenses and fixed deposit receipts during the financial year . The assessing
officer had not considered the submission and information provided by the Company during the assessment.
Furthermore, the assessing officer did not consider set-off of the depreciation losses carried forward from previous
years. Company has filed the rectification application to the Jurisdictional Assessing Officer of Income Tax.

The company had filed an Appeal before the Commissioner of Income Tax on 16.04.2025 against the
Assessment Order.

IX. ESCOMS Demand under section 11 of Electricity Act 2003,-

During the F.Y 2023-24, the State Government of Karnataka due to shortage of power generation invoked provisions
of section 11 of The Electricity Act 2003 vide an Order dated 16^th October 2023, whereby the Company was
instructed to supply the electricity units generated by the Cogen unit to State Electricity Distribution Companies
only at a provisional tariff rate of INR 4.86/- per unit which was latter on application of the ESCOMs finalised as
INR 4.75/- per unit by Karnataka Electricity Regulatory Commission (KERC) vide it's order 26^th November 2024.
The KERC directed the Company to repay the excess amount @ INR 0.11/- per unit charged and recovered from
the ESCOMs against the supply of units during F.Y 2023-24 within two months from the order. And also, ordered
that till the amount is not settled interest shall be applicable @ 12% p.a..

34. COMMITMENTS AND CONTINGENCIES (contd.)

Aggrieved by the KERC order, the Company has filed a Writ Petition with Highcourt of Karnataka which vide it's
order dated 12^th February 2025 issued stay on the recovery of amounts based on the order of KERC. The matter
was listed for further hearing on 21^st February 2025. Hon High Court advised respondent to file the objection
and further hearing is pending .

The amount repayable would be INR 84.32 Lakhs on account of Rate differential and Interest amount INR 3.47
Lakhs as on 31^st March 2025.

(vii) Terms and conditions of transactions with related parties

The sales to and purchases from related parties are made on terms equivalent to those that prevail in arm's length
transactions. Outstanding balances at the year end are unsecured and interest free and settlement occurs in cash.
For the year ended March 31, 2025, the Company has not recorded any impairment of receivables relating to
amount owed by related parties (March 31, 2024: NIL). This assessment is undertaken each financial year through
examining the financial position of the related party and market in which the related party operates.

36. SEGMENT REPORTING

A. For management purposes, the Company is organized into following four business units based on
the risks and rates of returns of the products offered by these unit as per Ind AS 108 on 'Operating
Segment' :

Sugar

Cogeneration (Green Power)

Bio based Chemicals
Distillery

No operating segments have been agrregated to form the above reportable operating segment

The Managing Director (MD) monitors the operating results of its business units separately for the purpose of making
decisions about resource allocation and performance assessment. Segment performance is evaluated based on profit
or loss and is measured consistently with profit or loss in the standalone financial statements. Also, the Company's
financing (including finance costs and finance income) and income taxes are managed on a Group basis and are not
allocated to operating segments.

The management assessed that the fair value of cash and cash equivalent, trade receivables, security deposits, trade
payables, and other current financial assets and liabilities approximate their carrying amounts largely due to the short
term maturities of these instruments.

The fair values for loans and non current security deposits were calculated based on cash flows discounted using
a current lending rate. They are classified as level 3 fair values in the Fair value hierarchy due to the inclusion of
unobservable inputs including counterparty credit risk.

The fair values of non current borrowings are based on discounted cash flows using a current borrowing rate. They
are classified as level 3 fair values in the fair value hierarchy due to the use of unobservable inputs, including own
credit risk.

37. FAIR VALUE MEASUREMENTS (contd.)
ii. Fair Value Hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments
that are recognised and measured at fair value. To provide an indication about the reliability of the inputs used in
determing fair value, the company has classified its financial instruments into three levels prescribed under the
accounting standard. An explanation of each level follows underneath the table:

iii Fair value measurement

Level 1 - Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity
instruments, traded bonds and mutual funds that have quoted price. The fair value of all equity instruments which
are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual funds are
valued using the closing NAV.

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

Level 3 - If one or more of the significant inputs are not based on observable market data, the instrument is included
in level 3. This is the case for unquoted equity shares.

There have been no transfers among Level 1, Level 2 and Level 3 during the period

iv. Valuation technique used to determine fair value

Specific Valuation techniques used to value financial instruments include:

- the use of quoted market prices or dealer quotes for similar instruments

- the fair value of forward foreign exchange contracts is determined using forward exchange rates at the balance
sheet date

- the fair value of the remaining financial instruments is determined using discounted cash flow analysis

The fair value of unquoted equity instruments is not significantly different from their carrying value and hence the
management has considered their carrying amount as fair value.

The company's activity expose it to market risk, liquidity risk and credit risk. In order to minimise any adverse effects
on the financial performance of the company, derivative financial instruments, such as foreign exchange forward
contracts, foreign currency option contracts are entered to hedge certain foreign currency risk exposures. Derivatives
are used exclusively for hedging purposes and not as trading or speculative instruments. This note explains the sources
of risk which the entity is exposed to and how the entity manages the risk and the impact of hedge accounting in the
financial statements.

(A) Credit risk

Credit risk is the risk that the counterparty will not meet its obligations leading to a financial loss. Credit risk arises
from cash and cash equivalents, financial assets carried at amortised cost and deposits with banks and financial
institutions, as well as credit exposures to customers including outstanding receivables.

i. Credit risk management

To manage the credit risk, Company periodically assesses the financial reliability of customers; taking into
account factors such as credit track record in the market and past dealings with the company for extension
of credit to Customer. Company monitors the payment track record of the customers, restrict credit limited
in SAP, credit rating etc. Concentrations of credit risk are limited as a result of the company's large and diverse
customer base. Company has also taken advances and security deposits from its customers / agents, which
mitigate the credit risk to an extent. Generally, term deposits are maintained with banks with which company
has also availed borrowings.

ii. Provision for expected credit losses - Trade Receivables

The company follows 'simplified approach' for recognition of loss allowance on Trade receivables.

As a practical expedient, the Company uses a provision matrix to determine impairment loss allowance on
portfolio of its trade receivables. The provision matrix is based on its historically observed default rates over the
expected life of the trade receivables and is adjusted for forward-looking estimates.

(B) Liquidity risk

Liquidity risk is the risk that a company may encounter difficulties in meeting its obligations associated with financial
liabilities that are settled by delivering cash or other financial assets. The table below provides undiscounted cash
flows towards financial liabilities into relevant maturity based on the remaining period at the balance sheet to the
contractual maturity date.

(C) 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 prices. Market risk comprises three types of risk: foreign currency risk, interest rate risk and other price risk
such as commodity price risk.

(i) Foreign currency risk

Foreign currency risk arises commercial transactions that recognised assets and liabilities denominated in a
currency that is not Company's functional currency (INR). The Company has natural hedge of exports against
import and any excess in import if any, is cover by forward contract.

(ii) Interest rate risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk
is the risk of changes in fair values of fixed interest bearing investments. Cash flow interest rate risk is the risk
that the future cash flows of floating interest bearing investments will fluctuate because of fluctuations in the
interest rates.

The company's main interest rate risk arises from long-term borrowings with variable rates, which expose the
company to cash flow interest rate risk.

During year ended March 31, 2025 and year ended March 31, 2024, the company's borrowings at variable rate
were denominated in INR."

The company's fixed rate borrowings are carried at amortised cost. They are therefore not subject to interest rate
risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because
of a change in market

Cash flow sensitivity analysis for variable-rate instruments

A reasonably possible change of 100 basis points in interest rates at the reporting date would have increased/
decreased profit or loss by amounts shown below. This analyses assumes that all other variables, in particular,
foreign currency exchange rates, remain constant. This calculation also assumes that the change occurs at the
balance sheet date and has been calculated based on risk exposures outstanding as at that date. The year end
balances are not necessarily representative of the average debt outstanding during the year.

40. DISCLOSURE ON BANK/FINANCIAL INSTITUTION COMPLIANCES

Summary of reconciliation of monthly statements of current assets filed by the Company with Banks are as below
No variance in statement submitted to banks and books of accounts

The quarterly statement for the quarter ended on 31^st March 2025 for Sakarwadi and Sameerwadi units have not been
submitted yet.

41. CAPITAL MANAGEMENT

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 parent. 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 debt, interest bearing
loans and borrowings, trade and other payables, less cash and cash equivalents and other bank balances.

43 .Cenvat credit Tuljabhavani SSK Ltd, Naldurg.

The company had taken the distillery of Tuljabhavani SSSK Ltd at Naldug, Maharashtra on a lease basis for three years upto
June-2009. On the expiry of the lease, the company stopped production and surrendered the Central Excise registration
certificate for the same. The company had carried forward and applied on March 28, 2012 for a transfer of CENVAT credit
of INR 117.50 Lakhs lying in balance as on April 30, 2009 from the register of Tuljabhavani SSSK Ltd. to the register of
Sakarwadi unit of the company.A show cause notice (SCN) was issued to reject the request for a grant of permission to
transfer credit lying as an unutilized balance in the CENVAT account.

The Assistant Commissioner of Central Excise & Customs, Nanded and rejected the company's submission and confirmed
the said SCN.

Thereafter, The Commissioner of Central Excise and Service Tax, Aurangabad and Hon'ble Customs Excise Service Tax
Appellate Tribunal (CESTAT), West Regional Branch, Mumbai have rejected company submissions and appeals.

The company has filed an appeal before Hon'ble Bombay High Court, Aurangabad Bench on 18.04.2023 and are awaiting
the hearing date for the matter.

44. E2E MATERIALS

The Company had made an investment of INR 134.65 Lakhs in a United States of America based company named as
e2e Materials, INC. during the period April 2010 to July 2014. However, E2E Materials, INC. was dissolved on March 20,
2018 by the order of competent authority of United States of America. The Company had made a provision against the
investment amount during period March 2015 to March 2016, as there was no expected returns or recovery against the
investment made. The Company has submitted an application to UBI for reporting of disinvestment in E2E Materials,
INC. due to dissolution on May 16, 2023 and awaiting response or confirmation from Union Bank of India along with
applicable fees or demand under the LSF scheme of RBI.

46.OTHER STATUTORY INFORMATION

(i) . The Company do not have any Benami property, where any proceeding has been initiated or pending against the

Company for holding any Benami property.

(ii) . The Company have not traded or invested in Crypto currency or Virtual Currency during reporting periods.

(iii) . The Company have 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"

(iv) The Company have 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"

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

(vi) The Company does not have any borrowings from banks and financial institutions that are used for any other
purpose other than the specific purpose for which it was taken at the reporting balance sheet date.

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

(viii) The Company is not declared as a wilful defaulter by any bank or financial institution or other lender during the any
reporting period.

(ix) The Company shall disclose as to whether the fair value of investment property (as measured for disclosure purposes
in the financial statements) is based on the valuation by a registered valuer as defined under rule 2 of Companies
(Registered Valuers and Valuation) Rules, 2017. Since, the Company does not have any investment property during
any reporting period, the said disclosure is not applicable.

(x) Section 8 of the Companies Act, 2013 companies are required to disclose grants or donations received during
the year. Since, the Company is not covered under Section 8 of the Companies Act, 2013, the said disclosure is
not applicable.

(xi) There are no scheme of arrangements which have been approved by the Competent Authority in terms of sections
230 to 237 of the Companies Act, 2013 during the reporting periods.

(xii) During the reporting periods, the Company does not have any loans or advances in the nature of loans either
repayable on demand or without specifying any terms or period of repayment granted to promoters, directors, KMPs
and related parties as per the definition of Companies Act, 2013.

(xiii) The Company has not identified any transactions or balances in any reporting periods with companies whose name
is struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

47. EVENTS AFTER REPORTING PERIOD

The management has evaluated the likely impact of prevailing uncertainties relating to imposition or enhancement of
reciprocal tariffs and believes that there are no material impacts on the financial statements of the Company for the
year ended March 31, 2025. However, the management will continue to monitor the situation from the perspective of
potential impact on the operations of the Company.

48. Project Dhruva - A Project for Transformation:

The Company has engaged consultants for the transformation of operations for the manufacturing units at Sakarwadi
and, Sameerwadi and at Mumbai HO. The transformation project includes areas of Operations, Finances, Procurement,
Marketing and Logistics. The process of optimization is ongoing and the company is monitoring the progress of project.

Against the billing done and amount paid to the consultant upto March 31, 2025, the company has expensed off
complete amount of billing done on account of the savings estimated on transformation in the area of procurement .
For the balance amount, the company has on the concept of prudence expensed off 25% of the amount billed during
the year and treated the remaining amount as advance paid.

This accounting treatment shall continue till Project Dhruv is completed in all respects and once all the reports are
submitted and the success of all the initiatives undertaken by the consultant is established, then the decision of final
accounting treatment to be given regarding payments made to the consultant will be decided upon by the Company
and the board.

49. Initial Public Offer (IPO)

During the year ended March 31, 2025, the company has completed its intial public offer ("IPO") of 1,57,59,937 equity
shares of face value of INR 10/- each at an issue price of INR 352/per share (including a share premium of INR 342/per
share). The issue comprised of a fresh issue of 92,32,954 equity shares aggregating to INR 325,00.00 Lakhs and offer
for sale of 65,26,983 equity shares by selling shareholders aggregating to INR 22,974.98 Lakhs totalling to INR 55,474.98
Crores Pursuant to the IPO, the equity shares of the company were listed on BSE Limited and National Stock Exchange
of India Limited (NSE) on October 30, 2024

49. Initial Public Offer (IPO) (contd.)

The total offer related expenses incurred upto 31^st March 25 were INR 1,784.98 Lakhs (Including taxes)The aforesaid
offer related expenses in relation to the fresh issue have been adjusted against securities premium as per Section 52 of
the Companies Act, 2013

50 . Previous year figures have been regrouped/ rearranged, wherever considered necessary to conform to current
period classification

Material Accounting Policies and Notes on Accounts form an integral part of the Standalone financial statements. 1 to 50

As per our report of even date For and on behalf of the Board of Directors

attached

For VERMA MEHTA & ASSOCIATES Samir Shantilal Somaiya Sangeeta Arunkumar Srivastava

Chartered Accountants Chairman and Managing Executive Director

Director

Firm Registration Number : (DIN : 00295458) (DIN : 00480462)

112118W

Sandeep Ramesh Verma Swarna Gunware Manoj Jain Naresh Sitaram Khetan

Partner Jt. Company Secretary Company Secretary & Chief Financial Officer

Compliance Officer

Membership No. 045711 (Membership No:32787) (Membership No :7998) (Membership No :

F037264)

Place : Mumbai Place : Mumbai

Date : 24^th May 2025 Date : 24^th May 2025