(r) Provisions, Contingent Assets and Contingent Liabilities

Provisions are recognised when the Company has a present legal or constructive obligation as a result of past events, it is
probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. These
are reviewed at each year end and reflect the best current estimate. Provisions are not recognised for future operating losses.
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by
considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any
one item included in the same class of obligations may be small. Provisions are measured at the present value of best estimate
of the Management of the expenditure required to settle the present obligation at the end of the reporting period. The discount
rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money
and the risks specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense.

Contingent liabilities are 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 or a present obligation that arises from past events where it is either not probable that an outflow of resources will be
required to settle the obligation or a reliable estimate of the amount cannot be made.

Contingent assets are not recognised but disclosed in the standalone financial statements when an inflow of economic benefits
is probable.

(s) Research and Development Expenditure

Research and Development expenditure is charged to revenue under the natural heads of account in the year in which it is
incurred. Research and Development expenditure on property, plant and equipment is treated in the same way as expenditure
on other property, plant and equipment.

(t) Earnings Per Share

Basic Earnings per share (EPS) is calculated by dividing the net profit or loss for the period attributable to Equity Shareholders by
the weighted average number of Equity shares outstanding during the period. Diluted Earnings per Equity Share are computed
by dividing net income by the weighted average number of Equity Shares adjusted for the effects of all dilutive potential Equity
Shares. Earnings considered in ascertaining the EPS is the net profit for the period after attributable tax thereto for the period.

(u) Segment Reporting - Basis of Information

In accordance with Ind AS 108 -Operating Segments, the Company has disclosed the segment information at consolidated level
and accordingly no separate disclosure on segment information is given at standalone financial results level.

2. On January 08, 2026, the Company acquired 5.95% equity stake in FPEL Mercury Private Limited (7,21,059 equity shares of 7 10/- each)
for a consideration of 7 3.27 Crores.

3. On May 06, 2025, the Company acquired 26.18% stake in Greenwin Energy Two LLP (2,25,000 equity shares of 7 10/- each) for a
consideration of 7 0.23 Crores.

4. On May 27, 2025, the Company acquired 2.18% equity stake in Amplus Kaveri Solar Private Limited (18,50,000 equity shares of 7 10/-
each) for a consideration of 7 1.85 Crores.

5. During the current year, the company has further subscribed to 1,20,50,000 “9% Non- Cumulative Optionally Convertible Redeemable
Preference Shares” of 7 100 each amounting to 7 120.50 Crores of Deepak Chem Tech Limited (Wholly Owned Subsidiary of the
Company).

6.

(b) Shares: Terms/Rights

(i) The Company has Authorised capital of Equity and Preference shares.

(ii) Each holder of the Equity Share is entitled to one vote per Share. The Company declares and pays dividend in Indian Rupees.
The dividend proposed by the Board of Directors is subject to approval of the shareholders at the ensuing Annual General
Meeting.

(iii) In the event of liquidation of the Company, the holders of Equity Shares shall be entitled to receive remaining assets of the
Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of Equity Shares
held by the Shareholders. No preferential amounts exist as on the Balance Sheet date.

(i) Working Capital borrowings from banks represent Cash Credit and Working Capital Demand Loan with rate of interest as MCLR of
respective banks plus spread ranging from 0% to 1.25% p.a. These borrowings are repayable on demand.

(ii) Working Capital borrowings are secured by way of first Hypothecation charge over Company's Raw Materials, Semi-Finished & Finished
Goods, Consumable Stores & Spares and Book Debts (present & future) and second charge on all Property, Plant and Equipment by
way of hypothecation and mortgage. The assets stated herein are disclosed under note 2, 9 and 11.

(iv) Entities over which key managerial personnel or their relatives are able to exercise control or significant Influence

Check Point Credits & Capital Private Limited * Deepak Cybit Private Limited * Deepak Fertilizers and Petrochemicals Corporation
Limited * Deepak Gulf LLC, Sultanate of Oman * Deepak Foundation * Deepak International Limited * Deepak Medical Foundation
* Deepak Research and Development Foundation * Deepak Novochem Technologies Limited * Forex Leafin Private Limited * Hardik
Leafin Private Limited * Mahadhan Agritech Limited * Performance Chemiserve Limited * Pranawa Leafin Private Limited * Skyrose
Finvest Private Limited * Stepup Credits & Capital Private Limited * Stiffen Credits and Capital Private Limited * Stigma Credits &
Capital Private Limited * Storewell Credits and Capital Private Limited * Sundown Finvest Private Limited * Hyspec Chemicals
Private Limited

Risk exposure

The Company is exposed to a number of risks, the most significant of which are detailed below:

Interest rate risk: A fall in the discount rate which is linked to the Government Securities Rate will increase the present value of the liability
requiring higher provision. A fall in the discount rate generally increases the mark to market value of the assets depending on the duration
of asset.

Salary 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.

Investment Risk: The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference
to market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will create a plan
deficit. Currently, for the plan in India, it has a relatively balanced mix of investments in government securities, and other debt instruments.”

Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in lines of Rule 101 of
Income Tax Rules, 1962, this generally reduces ALM risk.

39. CAPITAL MANAGEMENT

The key objective of the Company's capital management is to ensure that it maintains a stable capital structure with the focus on total
equity to uphold investor, creditor, and customer confidence and to ensure future development of its business.

The Company focused on keeping strong total equity base to ensure independence, security, as well as a high financial flexibility for
potential future borrowings, if required without impacting the risk profile of the Company.

For the purpose of Capital Management, the Company considers the following components of its Balance Sheet to manage capital.

40.2. Fair Value Hierarchy

The table below analyses financial instruments carried at fair value, by valuation method. The different levels have been defined as follows:
Level 1 - Quoted prices in active markets for identical assets or liabilities.

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices)
or indirectly (i.e. derived from prices).

Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

Comparative Market Multiples method has been used for estimating the fair value of Investments which is based on historical annual
accounts/annual reports and information collected from public domain. Where information pertaining to future expected performance
of investee companies including projections about their profitability, balance sheet status and cash flow expectations are available,
Discounted Cash Flow method has been used.

40.3.Financial Risk Management objectives

The Company has adequate internal processes to assess, monitor and manage financial risks. These risks include market risk (including
currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

The Company seeks to minimise the effects of these risks by using financial instruments such as foreign currency forward contracts
and option contracts to hedge risk exposures and appropriate risk management policies as detailed below. The use of these financial
instruments is governed by the Company's policies, which outlines principles on foreign exchange risk, interest rate risk, credit risk and
deployment of surplus funds.

40.4.2.Interest Rate Risk Management

The Company draws working capital demand loans, avails cash credit, etc. for meeting its funding requirements. Interest rates on these
borrowings are exposed to change in respective benchmark rates. The Company manages the interest rate risk by maintaining appropriate
mix/portfolio of the borrowings.

40.5. Credit Risk Management

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. The
Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including
deposits with banks and financial institutions, foreign exchange transactions and other financial instruments.

Customer credit risk is managed by each business unit subject to the Company's established policy, procedures and control relating to the
customer credit risk management. The Company uses financial information and past experience to evaluate credit quality of majority of its
customers and individual credit limits are defined in accordance with this assessment through third party experts. Outstanding receivables
and the credit worthiness of its counterparties are periodically monitored and taken upon case to case basis.

The credit risk on cash and bank balances, derivative financial instruments is limited because the counterparties are banks with high credit
ratings assigned by international credit rating agencies.

47. The Company has been sanctioned working capital from banks on the basis of security of current assets. Quarterly Statements of
Inventory and Book Debts submitted with the Banks in this regard, are reconciling with the books of Accounts of respective period.

48. CORPORATE SOCIAL RESPONSIBILITY

During FY 2025-26, the Company has spent ? 9.64 Crores on Corporate Social Responsibility activities, against the requirement of ? 8.68
Crores, being 2% of average of the net profits for the preceding three years.

The Company has been continuing to undertake projects for overall development and welfare of the society. Through the group's charitable
trust “Deepak Foundation”, the Company has upgraded its Corporate Social Responsibility ('CSR') activities to cover a larger section of the
society encompassing social interventions in various developmental domains.

49. The Government of India has consolidated multiple existing labour legislations into a unified framework comprising four Labour
Codes collectively referred to as the 'New Labour Codes' on November 21, 2025. Accordingly, the Company has assessed the impact
of these changes and, based on certain estimates and an actuarial valuation, the Company has made a provision of ^10.51 Crores as
an “Exceptional item” in the financial results for the year ended March 31, 2026.

50. OTHER STATUTORY INFORMATION

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

(ii) The Company does not have any transactions with struck off companies.

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

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

(v) 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

(vi) 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,

(vii) 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)

51. Events occurring after the balance sheet date: The Board of Directors have recommended, subject to the approval of shareholders,
dividend of 7 7.5/- (Rupees Seven and Fifty Paise only) per equity share of face value of 7 2/- (Rupees Two only) each for the year ended
March 31, 2026 on 13,63,93,041 equity shares amounting to 7 102.29 Crores.