p) 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,
it is probable that the Company will be required to settle the
obligation, and a reliable estimate can be made of the amount
of the obligation.

The amount recognised as a provision is the best estimate of
the consideration required to settle the present obligation
at the end of the reporting period, taking into account the
risks and uncertainties surrounding the obligations. When a
provision is measured using the cash flow estimated to settle
the present obligation, its carrying amount is the present
obligations of those cash flows (when the effect of the time
value of money is material).

When some or all of the economic benefits required to settle
a provision are expected to be recovered from a third party,
a receivable is recognised as an asset if it is virtually certain
that reimbursement will be received and the amount of the
receivable can be measured reliably.

Contingent liability

Contingent liability is a possible obligation arising from past
events and whose existence will be confirmed only by the
occurrence or non-occurrence of one or more uncertain
future events not wholly within the control of the entity or
a present obligation that arises from past events but is not
recognized because it is not probable that an outflow of
resources embodying economic benefits will be required to
settle the obligation or the amount of the obligation cannot
be measured with sufficient reliability.

The Company does not recognize a contingent liability but
discloses its existence in the financial statements.

Contingent Asset

Contingent asset is not recognized in the 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 recognized.

Provisions, contingent liabilities and contingent assets are
reviewed at each Balance Sheet date.

q) Investments in subsidiaries and joint
venture

Investments in subsidiaries and joint venture are carried
at cost less accumulated impairment losses, if any. Where
an indication of impairment exists, the carrying amount of
the investment is assessed and written down immediately
to its recoverable amount. On disposal of investments in
subsidiaries and joint venture, the difference between net
disposal proceeds and the carrying amounts are recognised
in the Statement of Profit and Loss.

r) Financial Instruments

Financial assets and financial liabilities are recognised when
a Company becomes a party to the contractual provisions of
the instruments. Financial assets and financial liabilities are
initially measured at fair value except trade receivables which
is measured at transaction price. Transaction costs that are
directly attributable to the acquisition or issue of financial
assets and financial liabilities (other than financial assets
and financial liabilities at fair value through profit or loss)
are added to or deducted from the fair value measured on
initial recognition of financial assets or financial liabilities, as
appropriate, on initial recognition. Transaction costs directly
attributable to the acquisition of financial assets or financial
liabilities at fair value through profit or loss are recognised
immediately in the statement of profit and loss.

Financial assets at amortised cost

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

Financial assets at fair value through profit or
loss (FVTPL)

Financial assets are measured at fair value through profit
and loss unless it is measured at amortised cost or at fair
value through other comprehensive income on initial
recognition. The transaction costs directly attributable

to the acquisition of financial assets and liabilities at fair
value through profit or loss are immediately recognised in
statement of profit and loss.

Financial assets designated at fair value
through OCI (equity instruments)

Upon initial recognition, the Company can elect to classify
irrevocably its equity investments as equity instruments
designated at fair value through OCI when they meet the
definition of equity under Ind AS 32 Financial Instruments:
Presentation and are not held for trading. The classification
is determined on an instrument-by-instrument basis.
Equity instruments which are held for trading and
contingent consideration recognised by an acquirer in
a business combination to which Ind AS103 applies are
classified as at FVTPL.

Gains and losses on these financial assets are never recycled
to profit or loss. Equity instruments designated at fair value
through OCI are not subject to impairment assessment.

Financial liabilities

Financial liabilities are subsequently measured at amortised
cost using the effective interest method.

The Company has established supplier finance arrangements
in the nature of Operational Buyer's credit. The Company
evaluates whether financial liabilities covered such
arrangements continue to be classified within trade payables,
or they need to be classified as a borrowing or as part of other
financial liabilities/as a separate line item on the face of the
balance sheet. Such evaluation requires exercise of judgment
basis specific terms of the arrangement.

The Company classifies financial liabilities covered under
supplier finance arrangement within trade payables in the
balance sheet only if (i) the obligation represents a liability to
pay for goods and services, (ii) is part of the working capital
used in its normal operating cycle (iii) The payable has been
invoiced and continues to reflect the substance of a trade
payable. If one or more of the above criteria are not met,
the Company derecognises its original liability toward the
supplier and recognise a new liability toward the bank which is
classified as "Borrowings”.

Cash flows related to liabilities arising from supplier finance
arrangements that classified in trade payables and borrowings
in the balance sheet are included in operating activities and
financing activities in the statement of cash flows respectively,
when the Company finally settles the liability. The payment
made by the Company to the bank toward interest, if any, is
presented as financing cash outflow.

Equity instruments

An equity instrument is a contract that evidences residual
interest in the assets of the Company after deducting all of its
liabilities. Equity instruments recognised by the Company are
measured at the proceeds received net off direct issue cost.

Offsetting of financial instruments

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

Derecognition of Financial Assets and Liabilities

The Company derecognises a financial asset when the
contractual rights to the cash flows from the financial asset
expire, or when the Company transfers the contractual
rights to receive the cash flows of the financial asset in
which substantially all the risks and rewards of ownership of
the financial asset are transferred, or in which the Company
neither transfers nor retains substantially all the risks and
rewards of ownership of the financial asset and does not
retain control of the financial asset.

The Company derecognises a financial liability (or a part
of financial liability) when the contractual obligation is
discharged, cancelled or expired. The difference between
the carrying amount of the financial liability derecognised
and the consideration paid is recognised in the Statement of
Profit and Loss.

s) Derivative financial instruments

The Company enters into a variety of derivative financial
instruments to manage its exposure to interest rate and
foreign exchange rate risks, including foreign exchange
forward contracts/options and interest rate swaps.

The use of foreign currency forward contracts/options is
governed by the Company's policies approved by the Board
of Directors, which provide written principles on the use of
such financial derivatives consistent with the Company's risk
management strategy. The counter party to the Company's
foreign currency forward contracts is generally a bank. The
Company does not use derivative financial instruments for
speculative purposes.

Derivatives are initially recognised at fair value at the date the
derivative contracts are entered into and are subsequently
remeasured to their fair value at the end of each reporting
period. The resulting gain or loss is recognised in the
statement of profit and loss immediately.

Profit or loss arising on cancellation or renewal of a forward
exchange contract is recognised as income or as expense in
the period in which such cancellation or renewal occurs.

t) Impairment

Financial assets (other than at fair value)

The Company assesses at each Balance sheet whether a
financial asset or a group of financial assets is impaired. Ind AS
109 requires expected credit losses to be measured through
a loss allowance. The Company recognizes lifetime expected
losses for all contract assets and/or all trade receivables
that do not constitute a financing transaction. For all other

financial assets, expected credit losses are measured at an
amount equal to the 12 month expected credit losses or at
an amount equal to the lifetime expected credit losses if the
credit risk on the financial asset has increased significantly
since initial recognition.

Non-financial assets

Property, plant and Equipment and intangible
assets

At the end of each reporting period, the Company reviews
the carrying amounts of its property, plant and equipment
and intangible assets to determine whether there is any
indication that those assets have suffered an impairment
loss. If any such indication exists, the recoverable amount of
the asset is estimated in order to determine the extent of the
impairment loss (if any). When it is not possible to estimate
the recoverable amount of an individual asset, the Company
estimates the recoverable amount of the cash generating
unit to which the asset belongs. When a reasonable and
consistent basis of allocation can be identified, corporate
assets are also allocated to individual cash generating units,
or otherwise they are allocated to the smallest group of
cash generating unit for which a reasonable and consistent
allocation basis can be identified.

Recoverable amount is the higher of fair value less costs
of disposal and value in use. In assessing value in use, the
estimated future cash flows are discounted to their present
value using a pre-tax discount rate that reflects current
market assessments of the time value of money and the risks
specific to the asset for which the estimates of future cash
flows have not been adjusted.

If the recoverable amount of an asset (or cash generating unit)
is estimated to be less than its carrying amount, the carrying
amount of the asset (or cash generating unit) is reduced to
its recoverable amount. An impairment loss is recognised
immediately in the statement profit and loss.

When an impairment loss subsequently reverses, the carrying
amount of the asset (or a cash generating unit) is increased
to the revised estimate of its recoverable amount, but so that
the increased carrying amount does not exceed the carrying
amount that would have been determined had no impairment
loss been recognised for the asset (or cash generating unit)
in prior years. A reversal of an impairment loss is recognised
immediately in the statement of profit and loss.

u) Business combinations

The Company determines that it has acquired a business
when the acquired set of activities and assets include an
input and a substantive process that together significantly
contribute to the ability to create outputs. The acquired
process is considered substantive if it is critical to the ability
to continue producing outputs, and the inputs acquired
include an organised workforce with the necessary skills,
knowledge, or experience to perform that process or it
significantly contributes to the ability to continue producing
outputs. Business combinations are accounted for using the
acquisition method. The cost of an acquisition is measured
as the aggregate of the consideration transferred measured
at acquisition date fair value and the amount of any non¬

controlling interests in the acquiree. For each business
combination, the Company elects whether to measure the
non-controlling interests in the acquiree at fair value or at the
proportionate share of the acquiree's identifiable net assets.
Acquisition-related costs are expensed in the periods in
which the costs are incurred and the services are received,
with the exception of the costs of issuing equity securities
that are recognised in accordance with Ind AS 32 and
Ind AS 109.

At the acquisition date, the identifiable assets acquired and
the liabilities assumed are recognised at their acquisition date
fair values. For this purpose, the liabilities assumed include
contingent liabilities representing present obligation and
they are measured at their acquisition fair values irrespective
of the fact that outflow of resources embodying economic
benefits is not probable. However, the following assets and
liabilities acquired in a business combination are measured at
the basis indicated below:

• Deferred tax assets or liabilities, and the liabilities or
assets related to employee benefit arrangements are
recognised and measured in accordance with Ind
AS 12 Income Tax and Ind AS 19 Employee Benefits
respectively.

• Potential tax effects of temporary differences and carry
forwards of an acquiree that exist at the acquisition date
or arise as a result of the acquisition are accounted in
accordance with Ind AS 12.

Goodwill is initially measured at cost, being the excess of the
aggregate of the consideration transferred and the amount
recognised for non-controlling interests, and any previous
interest held, over the net identifiable assets acquired and
liabilities assumed.

After initial recognition, goodwill is measured at cost less
any accumulated impairment losses. For the purpose
of impairment testing, goodwill acquired in a business
combination is, from the acquisition date, allocated to each
of the Company's cash-generating units that are expected to
benefit from the combination, irrespective of whether other
assets or liabilities of the acquiree are assigned to those units.

A cash generating unit to which goodwill has been allocated
is tested for impairment annually, or more frequently when
there is an indication that the unit may be impaired. If the
recoverable amount of the cash generating unit is less than
its carrying amount, the impairment loss is allocated first to
reduce the carrying amount of any goodwill allocated to the
unit and then to the other assets of the unit pro rata based on
the carrying amount of each asset in the unit. Any impairment
loss for goodwill is recognised in profit or loss. An impairment
loss recognised for goodwill is not reversed in subsequent
periods unless (a) the impairment loss was caused by a
specific external event of an exceptional nature that is not
expected to recur; and (b) subsequent external events have
occurred that reverse the effect of that event.

If the initial accounting for a business combination is
incomplete by the end of the reporting period in which
the combination occurs, the Company reports provisional
amounts for the items for which the accounting is incomplete.

Those provisional amounts are adjusted through goodwill
during the measurement period, or additional assets or
liabilities are recognised, to reflect new information obtained
about facts and circumstances that existed at the acquisition
date that, if known, would have affected the amounts
recognized at that date. These adjustments are called as
measurement period adjustments. The measurement period
does not exceed one year from the acquisition date.

Common control business combination

A business combination involving entities or businesses
under common control is a business combination in which
all of the combining entities or businesses are ultimately
controlled by the same party or parties both before and after
the business combination and the control is not transitory
and are accounted for using the pooling of interests method
as follows:

• The assets and liabilities of the combining entities are
reflected at their carrying amounts included in the
Company's consolidated financial statements.

• No adjustments are made to reflect fair values, or
recognise any new assets and liabilities. Adjustments are
only made to harmonise accounting policies.

• The financial information in the financial statements in
respect of prior periods is restated as if the business
combination had occurred from the beginning of
the preceding period in the financial statements,
irrespective of the actual date of the combination.
However, where the business combination had
occurred after that date, the prior period information is
restated only from that date.

• The identity of the reserves are preserved and the
reserves of the transferor become reserves of the
transferee.

• The difference, if any, between the amounts recorded as
share capital issued plus any additional consideration in
the form of cash or other assets and the amount of share
capital of the transferor is transferred to capital reserve.

v) Current versus non-current classification

The Company segregates assets and liabilities into current
and non-current categories for presentation in the balance
sheet after considering its normal operating cycle and
other criteria set out in Ind AS 1, "Presentation of Financial
Statements”. For this purpose, current assets and liabilities
include the current portion of non-current assets and
liabilities respectively. Deferred tax assets and liabilities are
always classified as non-current.

The operating cycle is the time between the acquisition of
assets for processing and their realization in cash and cash
equivalents. The Company has identified period up to twelve
months as its operating cycle.

w) Dividend

The Company recognises a liability to pay dividend to
owners when the distribution is authorised, and the
distribution is no longer at the discretion of the Company.
A corresponding amount is recognised directly in equity. As
per the corporate laws in India, a distribution is authorised
when it is approved by the shareholders of the Company
in case of final dividend and by board of directors of the
Company in case of interim dividend.

x) Critical accounting judgements and key
sources of estimation uncertainty

The preparation of the financial statements in conformity
with the Ind AS requires management to make judgements,
estimates and assumptions that affect the application of
accounting policies and the reported amounts of assets,
liabilities and disclosures as at date of the financial statements
and the reported amounts of the revenues and expenses
for the years presented. The estimates and associated
assumptions are based on historical experience and other
factors that are considered to be relevant. Actual results
may differ from these estimates under different assumptions
and conditions. The estimates and underlying assumptions
are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimate
is revised if the revision affects only that period, or in the
period of the revision and future periods if the revision affects
both current and future periods.

Key sources of estimation uncertainty

The following are the key assumptions concerning the future,
and other key sources of estimation uncertainty at the end of
the reporting period that may have a significant risk of causing
as material adjustment to the carrying amounts of assets and
liabilities within next financial year.

i. Useful lives of property, plant and equipment
and intangible assets

As described in Note 2 (g) and (h), the Company reviews the
estimated useful lives and residual values, if any, of property,
plant and equipment and intangible assets at the end of each
reporting period. The lives are based on historical experience
with similar type assets as well as anticipation of technical
or commercial obsolescence arising from a upgraded
technological improvement. During the current financial year,
the management determined that there were no changes to
the useful lives and residual values of the property plant and
equipment and intangible assets.

ii. Provisions and Contingent Liabilities

Provisions and Contingent Liabilities are reviewed at each
Balance Sheet date and adjusted to reflect the current
best estimates.

iii. Impairment of Investment in Subsidiaries
and Joint Venture

The investment in subsidiaries and joint venture are tested
for impairment in accordance with provisions applicable
to impairment of non-financial assets. The determination
of recoverable amounts of the Company's investments in
subsidiaries and involves significant judgements. Market
related information and estimates are used to determine
the recoverable amount. Key assumptions on which
management has based its determination of recoverable
amount includes weighted average cost of capital and
estimated operating margins.

iv. Impairment of goodwill

The Company tests whether goodwill has suffered any
impairment on an annual basis. For the current and
previous financial year, the recoverable amount of the cash
generating units (CGUs) was determined based on value-
in-use calculations which require the use of assumptions.
The calculations use cash flow projections based on
financial budgets approved by management covering a
five-year period. Cash flows beyond the five-year period are
extrapolated using the estimated growth rates.

Goodwill of ? 1,844 million (Previous year: 1,844 million) and
? 192 million (Previous year: 192 million) have been allocated
for impairment testing purpose to the Cash Generating Unit
(CGU) viz., Adhesives and Plumbing respectively.

The recoverable amount of all cash generating units (CGUs)
has been determined based on value in use calculations.
These calculations use cash flow projections based on
financial budgets approved by management. Recoverable
amounts for these CGUs has been determined based on
value in use for which cash flow forecasts of the related CGU
and pre tax discount rate ranges from 7%-14% has been
applied. The values assigned to the assumption reflect past
experience and are consistent with the management's plans
for focusing operations in these markets. The management
believes that the planned market share growth is reasonably
achievable.

An analysis of the sensitivity of the computation to a
change in key parameters (operating margin, discount
rate and growth rate), based on a reasonable assumption,
did not identify any probable scenario in which the
recoverable amount of the CGU would decrease below its
carrying amount.

v. Defined benefit obligation

The cost of the defined benefit gratuity plan 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.

vi. Discount, Incentives & Rebates

Revenue is measured net of variable consideration such as
discounts, incentives, rebates etc. given to the customers on
the Company's sales. These discounts, incentives, rebates etc.
are given on monthly, quarterly and annual basis based on
target achievement by the customers and specific discounts
on agreed terms. Estimation is involved during the financial
year until the end of reporting year. At reporting year end
date, since the targets are already achieved, no significant
element of estimation are present and for specific discounts,
no material change is expected based on the past experience.

vii. Impairment of financial assets (other than
at fair value)

Measurement of impairment of financial assets require
use of estimates, which have been explained in the note on
financial assets, financial liabilities and equity instruments,
under impairment of financial assets (other than at fair value)
(Refer note t).

viii. Leases

a. Company uses significant judgement in the applicable
discount rate. The discount rate is generally based on
the incremental borrowing rate specific to the lease
being evaluated or for a portfolio of leases with similar
characteristics.

b. In determining the lease term, the Company has
assessed that its termination rights as a lessee,
exercisable after the non-cancellable period, are not
substantive due to the potential costs and commercial
disadvantages associated with early termination.
Accordingly, the termination right is considered to
be substantive for the lessor, and the Company has
deemed to have an unconditional obligation for the
entire lease term on prudence basis. This lease term
has been used in the measurement of lease liabilities.

y) New and amended standards

The Company applied for the first-time certain standards
and amendments, which are effective for annual periods
beginning on or after 1 April 2025. The Company has not early
adopted any standard, interpretation or amendment that has
been issued but is not yet effective.

1. 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 1 April 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.

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

In August 2025, the MCA notified amendments to
paragraphs 69 to 76 of Ind AS 1 to specify the requirements
for classifying liabilities as current or non-current. The
amendments clarify:

• What is meant by a right to defer settlement.

• That a right to defer must exist at the end of the reporting
period.

• That classification is unaffected by the likelihood that an
entity will exercise its deferral right.

• That only if an embedded derivative in a convertible
liability is itself an equity instrument would the terms of a
liability not impact its classification.

In addition, a requirement has been introduced to require
disclosure 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 are effective for annual reporting periods
beginning on or after 1 April 2025 retrospectively in
accordance with Ind AS 8.

The amendments have not had an impact on the classification
of Company's liabilities.

3. Amendments to Ind AS 7 and Ind AS
107-Supplier Finance Arrangements

In 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. Please refer to Note 19.

4. International Tax Reform—Pillar Two Model
Rules - Amendments to Ind AS 12

In August 2025, the MCA notified amendments to Ind AS
12 Income Taxes in response to the OECD's BEPS Pillar Two
rules and include:

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

• Disclosure requirements for affected entities to help
users of the financial statements better understand an
entity's exposure to Pillar Two income taxes arising from
that legislation, particularly before its effective date.

The mandatory temporary exception - the use of which is
required to be disclosed - applies immediately. The remaining
disclosure requirements apply for annual reporting periods
beginning on or after 1 April 2025, but not for any interim
periods ending on or before 31 March 2026.

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

z) Standards notified but not yet effective

The new and amended standards that are notified by the
Ministry of Corporate Affairs (MCA), but not yet effective, up
to the date of issuance of the Company's financial statements
are disclosed below. The Company will adopt these new and
amended standards, when they become effective.

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

In accordance with Ind AS 1 currently applicable, breach of
an immaterial covenant is ignored deciding in current vs.
non-current classification of liabilities. Also, in case of breach
of a material covenant of a non-current loan on or before the
reporting date, the entity can obtain waiver from the lender
after the reporting date and continue to classify the loan as
non-current liability.

In accordance with changes to Ind AS 1 already notified
by the MCA, the above relaxations to classify loan as non¬
current liability will not be available from FY 2026-27 onward
and need to be applied retrospectively. Consequently:

A breach of either material or immaterial covenant will trigger
current classification of liability.

To continue classifying loan as non-current liability, entities
will need to obtain waiver from the breach on or before the
reporting date.

The Company is currently assessing the impact the
amendments will have on its standalone financial statements.

f) Stock options granted under the Employee Stock Options scheme:

1. Details of the Employee stock option plan of the company:

Astral Limited (the Company) formulated Employees Stock Option Scheme viz. Astral Employee Stock Option Scheme 2015
("the Scheme”) for the benefit of employees of the Company. Shareholders of the Company approved the Scheme by passing
special resolution through postal ballot dated October 21, 2015 and was further amended vide shareholders resolution passed
in the Annual General Meeting held on August 21, 2020. Under the said Scheme, Nomination and Remuneration Committee is
empowered to grant stock options to eligible employees of the Company, up to 243,923 (Post bonus) Minimum vesting period
of stock option is one year and exercise period of stock option is one year from the date of vesting.

The Committee granted 16,282 stock options on November 14, 2015, 21,600 stock options on March 30, 2017, 22,400
stock options on November 13, 2017, 7,450 stock options on June 29, 2019, 9,310 stock options on October 24, 2019, 9,310
stock options on August 4, 2020, 12,413 stock options on July 1, 2021, 11,997 stock options on October 8, 2022 and 15,436
stock options on October 18, 2023 totalling 126,198 stock options till date, 5,040 stock options lapsed or are forfeited will be
available for future grant to the eligible Employee and 10,746 stock options are issued as bonus shares due to impact of bonus
on outstanding option series as on the bonus record date. Each stock option is exercisable into one equity share of face value
of ? 1/- each.

a. In August 2025 and November 2025, the dividend of ? 2.25 per share (total dividend ? 604 Million) and ? 1.5 per share
(total dividend ? 403 Million) respectively, was paid to holders of fully paid equity shares.

b. In August 2024 and November 2024, the dividend of ? 2.25 per share (total dividend ? 604 Million) and ? 1.5 per share
(total dividend ? 403 Million) respectively, was paid to holders of fully paid equity shares.

c. Nature and Purpose of reserve
Capital reserve

The company has created capital reserve out of capital subsidies received from state Governments of ? 4 million, further
Capital Reserve of ? 91 million created on amalgamation of erstwhile subsidiaries, Resinova Chemie Limited and Astral
Biochem Private Limited, with the Company. It is not available for distribution of dividend to shareholders.

Securities premium

The amount received in excess of face value of the equity shares is recognised in Securities Premium. This reserve
is available for utilization in accordance with the provisions of the Companies Act, 2013. In case of equity-settled
share based payment transactions, the difference between fair value on grant date and nominal value of share is
accounted as securities premium.

General reserve

General reserve is created from time to time by way of transfer of profits from retained earnings for appropriation
purposes. General reserve is created by a transfer from one component of equity to another and is not an item of other
comprehensive income. It can be used for distribution to equity shareholders only in compliance with the Companies Act,
2013, as amended.

Revaluation Reserve

The company has created revaluation reserve out of revaluation of land carried out during the year 2004-05.

Stock Options Outstanding Account

Stock Option Outstanding Account is used to recognise grand date fair value options vested to employees under various
equity settled schemes. The fair value of the equity-settled share based payment transactions with employees is recognised
in Statement of Profit and Loss with corresponding credit to Stock Options Outstanding Account.

Retained earnings

Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or
other distributions paid to shareholders. It can be used for distribution to equity shareholders only in compliance with the
Companies Act, 2013, as amended.

a Refer Note 38 for information about liquidity risk.

b Quarterly returns or statements of current assets filed by the Company with banks are in agreement with the books of
accounts.

c Term Loan of IndusInd Bank Limited of ? 295 Million (as at March 31, 2025: ? 297 Million) repayable in annual installments
till December 2029. Rate of Interest for Term Loan ranges from 7.5% to 8.5% p.a..

d Buyers Credit: Rate of interest for Buyer's Credit ranges from 2.4% to 5.0% p.a.

1. ICICI Bank Limited Buyers Credit of ?NIL (as at March 31, 2025: ? 323 Millions).

2. HSBC Bank Limited Buyers Credit of ?NIL (as at March 31, 2025: ? 57 Million).

3. Yes Bank Limited Buyers Credit of ? NIL (as at March 31, 2025: ? 68 Million).

4. Kotak Mahindra Bank Limited Buyers Credit of ? 327 Million (as at March 31, 2025: ? 39 Million) repayable by
November 2027.

e Working capital facilities of the company from certain banks are secured by way of first Pari-Passu charge on the current
assets.

a. Refer Note 38 for information about credit risk, market risk and liquidity risk of Trade payables.

b. Trade payables are non-interest bearing and are generally settled within 120 days. Trade payables that are part of the
Company's supplier finance arrangement, namely Operational Buyer's Credit, are settled within 180 days from the
date of drawdown.

The carrying amount of trade payables included in the supplier finance arrangement (disclosed as Operational Buyer's
Credit) has been fully settled, and the respective vendors under this arrangement have received payment in full.

34. EMPLOYEE BENEFITS:
Post-employment Benefit

Defined Contribution Plan:

Amount towards Defined Contribution Plan have been
recognized under "Contribution to Provident and Other
Funds” in Note 27 ? 106 Million (Previous Year: ? 101 Million).

Defined Benefit Plan:

The Company has defined benefit plans for gratuity to
eligible employees, contributions for which are made to
insurance service providers who invests the funds as per
IRDA guidelines. The details of these defined benefit plans
recognised in the financial statements are as under:

General Description of the Plan:

The Company operates a defined benefit plan (the
Gratuity Plan) covering eligible employees, which provides
a lump sum payment to vested employees at retirement,
death, incapacitation or termination of employment, of an
amount based on the respective employees salary and the
tenure of employment.

The defined benefit plans typically expose
to the Company to various risk such as:

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.

Mortality 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.

Concentration Risk:

Plan is having a concentration risk as all the assets are invested
with the insurance company and a default will wipe out all the
assets. Although probability of this is very low as insurance
companies have to follow stringent regulatory guidelines
which mitigate risk.

38. FINANCIAL INSTRUMENTS
1. Capital management

The Company manages its capital to ensure that the Company will be able to continue as going concern while maximising the
return to stakeholders through optimisation of debt and equity balance.

The capital structure of the Company consists of net debt (borrowings and lease liabilities as detailed in Note 15 and 39 off set
by cash and bank balances) and total equity (excluding revaluation reserve) of the Company.

The risk management committee of the Company reviews the risk capital structure of the company. As part of this review the
company considers the cost of capital and the risk associated with each category of funding.

Objectives, policies or processes for managing capital are reviewed regularly to reflect changes in market conditions and the
Company's activities during the years ended March 31, 2026 and March 31, 2025.

3. Financial risk management objectives

The Company's financial liabilities comprise mainly of borrowings, trade payables and other financial liabilities. The Company's
financial assets comprise mainly of investments, cash and cash equivalents, other balances with banks, loans, trade receivables
and other financial assets.

The Company's business activities are exposed to a variety of financial risks, namely market risk, credit risk and liquidity risk.

The Company's senior management has the overall responsibility for establishing and governing the Company's risk
management framework who are responsible for developing and monitoring the Company's risk management policies. The
Company's risk management policies are established to identify and analyse the risks faced by the Company, to set and monitor
appropriate risk limits and controls, periodically review the changes in market conditions and reflect the changes in the policy
accordingly. The key risks and mitigating actions are also placed before the Audit Committee of the Company. Internal audit
undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to
the audit committee.

A. Management of Market Risk

The Company's size and operations result in it being exposed to the following market risks that arise from its use of financial
instruments:

- currency risk

- interest rate risk

- commodity risk

i. Currency risk

The Company's activities expose it primarily to the financial risk of changes in foreign currency exchange rates. The Company
enters into a variety of derivative financial instruments to manage its exposure to foreign currency risk.

The carrying amounts of the Company's foreign currency dominated monetary assets and monetary liabilities at the end of the
reporting period are as follows:

Foreign currency sensitivity analysis:

The Company is mainly exposed to the currency: USD, EUR, GBP, CHF and AED.

The following table details, Company's sensitivity to a 5% increase and decrease in the rupee against the relevant foreign
currencies. 5% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and
represents management's assessment of the reasonably possible change in foreign exchange rates. This is mainly attributable
to the exposure outstanding not hedged on receivables and payables in the Company at the end of the reporting period. The
sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the
period end for a 5% change in foreign currency rate. A positive number below indicates an increase in the profit and equity where
the rupee strengthens 5% against the relevant currency. For a 5% weakening of the rupee against the relevant currency, there
would be a comparable impact on the profit and equity, and the balances below would be negative.

The Company, in accordance with its risk management policies and procedures, enters into foreign currency forward contracts
to manage its exposure in foreign exchange rate variations. The counter party is generally a bank. These contracts are for a period
between one day and three years. The above sensitivity does not include the impact of foreign currency forward contracts and
option contracts which largely mitigate the risk.

ii. Interest rate risk

Interest rate risk is the risk that the future cash flow with respect to interest payments on borrowing will fluctuate because of
change in market interest rates. The Company's exposure to the risk of changes in market interest rates relates primarily to the
Company's long-term debt obligation with floating interest rates. In order to optimize the Company's position with regards
to interest income and interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate
interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio.

Interest rate sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and
borrowings affected. With all other variables held constant, the Company's profit before tax and pre-tax equity is affected
through the impact on floating rate borrowings, as follows:

/3- m Minmm

39. LEASE:Company as a lessee

The Company's lease asset classes primarily consist of leases for Property, Plant and Equipment.

The Company has lease contracts for land and buildings used in its operations. The Company's obligations under its leases are
secured by the lessor's title to the leased assets. Generally, the Company is restricted from assigning and subleasing the leased
assets.

The Company also has certain leases of buildings with lease terms of 12 months or less. The Company applies the 'short-term
lease' recognition exemptions for these leases.

⁽³⁾ Cost of goods sold = Cost of materials consumed Purchase of Traded goods Changes in inventories

⁽⁴⁾ Working capital = Current assets - Current liabilities

⁽⁵⁾ Capital Employed = Tangible Net Worth Total Debt Deferred Tax Liability
Notes:

a. The decrease in ratio is on account of decrease in long-term borrowings as well as increase in Share Holders' Equity during
the year.

b. The major reason for decrease in debt-service coverage ratio is the increase of finance cost due to increased foreign
exchange fluctuation losses during the year.

41. SEGMENT REPORTING:

The company has presented segment information in the Consolidated Financial Statement which is presented in the same
financial report. Accordingly, in terms of paragraph 4 of Ind AS 108 - Operating Segments, no disclosure related to segments are
presented in this standalone financial statement.

42. INFORMATION RELATING TO JOINT VENTURE:

The Company has 50% ownership interest in joint venture Astral Pipes Limited, incorporated in Kenya. Its proportionate share in
the assets, liabilities, income and expenses etc. in the said joint venture is given below:

(Ultimate Beneficiaries). Further, No funds have been received by the Company from any parties (Funding Parties) with the
understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on
behalf of the Company or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

46. EVENTS AFTER THE REPORTING PERIOD

The Board of Directors, in its meeting held on May 18, 2026, has proposed a final dividend of ? 2.50 per equity share for the
financial year ended March 31, 2026. The proposal is subject to the approval of shareholders at the Annual General Meeting and
if approved would result in a cash outflow of approximately ? 672 Million.