Terms and rights attached to shares

The Company has one class of equity shares having a par value of ? 10 per share each. All shareholders for fully paid up equity shares are entitled to one vote per share and for partly paid up shares the voting rights considered are in proportion to the actual amount paid on those shares. The Company declares and pays dividend in Indian rupees. The dividend proposed by the board of directors is subject to the approval of the shareholders in ensuing Annual General Meeting except in the case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in the proportion to their shareholdings.

Nature and purpose of other reserves

(i) Securities premium

Securities premium is used to record premium received on issue of shares. The reserve is utilised in accordance with the provisions of the Indian Companies Act, 2013 (the "Companies Act").

(ii) Capital reserve

(a) Certain grants of capital nature had been credited to Capital Reserve.

(b) The Company has recognised profit on account of amalgamation in capital reserve.

(iii) Capital redemption reserve

Capital redemption reserve was created on account of reinstatement of certain investments and spares at cost.

(iv) General reserve

Under the erstwhile Companies Act 1956, a general reserve was created through an annual transfer of net profit at a specified percentage in accordance with applicable regulations. Consequent to the introduction of the Companies Act, the requirement to mandatory transfer a specified percentage of net profit to general reserve has been withdrawn. During the FY 24-25, pursuant to a Scheme of Arrangement, the accumulated balance in the General Reserve has been appropriately utilized in accordance with the provisions of the scheme.

(v) Revaluation reserve

Revaluation reserve was created on account of revaluation of fixed assets carried out under previous GAAP.

(vi) Fair value through other comprehensive income (FVOCI)- equity instruments.

The cumulative gains and losses arising on fair value changes of equity investments measured at fair value through other comprehensive income are recognised in FVOCI - equity instruments reserve. The balance of the reserve represents such changes recognised net of amounts reclassified to retained earnings on disposal of such investments.

(vii) Other reserves

Others primarily include:

(a) Amounts appropriated out of profit or loss for doubtful debts and contingencies.

(b) Share buyback reserve has been created as per the Companies Act, 1956.

(c) Reserve which has arisen on forfeiture of shares.

(viii) Fair valuation of Non-Convertible Cumulative Redeemable Preference Shares

Deemed equity on fair value of Non-Convertible Cumulative Redeemable Preference Shares. During the previous year, pursuant to the Scheme of Arrangement, these instruments have been transferred to the Resulting Company. Consequently, the carrying amount of these instruments has been transferred to Retained Earnings.

(i) Compensated absences

Compensated absences cover the Company's liability for sick and earned leave.

(ii) Defined benefit plan

a) Gratuity

The Company operates a gratuity plan through the "KICM Gratuity Fund". Every employee is entitled to a benefit equivalent to fifteen days salary last drawn for each completed year of service in line with the Payment of Gratuity Act, 1972. The same is payable at the time of separation from the Company or retirement, whichever is earlier. The benefits vest after five years of continuous service.

b) Provident fund

Provident fund for certain eligible employees is managed by the Company through the "Birla Industries Provident Fund", in line with the Provident Fund and Miscellaneous Provisions Act, 1952. The plan guarantees interest at the rate notified by the Provident Fund Authorities. The contribution by the employer and employee together with the interest accumulated thereon are payable to employees at the time of their separation from the Company or retirement, whichever is earlier. The benefits vest immediately on rendering of the services by the employee. The Company has an obligation to fund any shortfall on the yield of the trust's investments over the administered interest rates on an annual basis. These administered rates are determined annually predominantly considering the social rather than economic factors and in most cases the actual return earned by the Company has been higher in the past years. The actuary has provided a valuation for provident fund liabilities on the basis of guidance issued by Actuarial Society of India and based on the below provided assumptions there is no shortfall as at 31 March 2026 and 31 March 2025 respectively.

The Company also pays provident fund contributions to publically administered local fund as per the local regulations. The Company has no further payment obligations once the contributions have been paid. The contributions are accounted for as defined contribution plans and the contributions are recognised as employee benefit expense when they are due.

The above sensitivity analysis is based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

(vii) The major categories of plans assets

In the absence of detailed information regarding plan assets which is funded with Insurance Companies, the composition of each major category of plan assets, the percentage or amount for each category to the fair value of plan assets has not been disclosed.

(viii) Risk exposure

Through its defined benefit plans the Company is exposed to a number of risks, the most significant of which are detailed below:

Investment risk:

The defined benefit plans are funded with insurance companies of India. The Company does not have any liberty to manage the funds provided to insurance companies.

The present value of the defined benefit plan liability is calculated using a discount rate determined by reference to the Government of India bonds. If the return on plan asset is below this rate, it will create a plan deficit.

Interest risk:

A decrease in the interest rate on plan assets will increase the plan liability.

Life expectancy:

The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and at the end of the employment. An increase in the life expectancy of the plan participants will increase the plan liability.

Salary growth risk

The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. An increase in the salary of the plan participants will increase the plan liability.

(ix) Defined benefit liability and employer contributions

The weighted average duration of the defined benefit obligation is 4 years (31 March 2025 - 7 years).

(a) Management identified indicators of impairment and expected credit loss in respect of its investments and loans in Cygnet Industries Limited ('CIL'), primarily due to recurring losses in recent years and negative net worth of the subsidiary. Accordingly, the Company, with the assistance of an independent external valuer, performed an impairment and expected credit loss assessment of its investments and loans in the Subsidiary in accordance with Ind AS 36, Impairment of Assets and Ind AS 109 - Financial Instruments.

Consequently, it has recognised an provision for impairment of ? 15,619.32 lakhs (? 10,100.00 lakhs towards impairment loss of subsidiary investment, ? 5,519.32 lakhs towards loan from subsidiary) (31 March 2025 : ? 19,000.00 lakhs) which has been presented as an exceptional item in the Standalone statement of profit and loss.

The recoverable amount of the investment and loan in the Subsidiary was determined by carrying out a valuation of underlying net assets of the subsidiary with the assistance of an independent external valuation expert using 'Depreciated Replacement Cost' ('DRC') method for valuation of Plant and Machinery and the Prevailing Market Rate / Price Trend approach for valuation of Land and Buildings. Such valuation exercise required the management to make significant estimates and judgments, particularly in determining remaining useful life, replacement cost and prevailing market rates estimation, etc.

(b) The expected realization value of the company's factory land comprised in its Kesoram Spun Pipes and Foundries ("KSPF") unit is estimated to be lower than its carrying value. The provision of ? 4172.11 lakhs on such re-measurement has been recognised and presented as an exceptional item in the Standalone statement of profit and loss for the year ended March 31, 2026.

(c) On loans given to subsidiary, the Board had approved the waiver of accumulated interest of ? 4424.06 lakhs pertaining to previous years, which was recognised and presented as an exceptional item in the Standalone statement of profit and loss for the year ended March 31, 2026.

(i) In the opinion of the management, no provision is considered necessary for the disputes mentioned above on the ground that there are fair chances of successful outcome of appeals.

(ii) It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect to the above pending resolution of the respective proceedings.

(iii) The amounts disclosed above represent the best possible estimates arrived at on the basis of available information and do not include any penalty payable.

128 l Annual Report & Accounts 2025-26

31. Capital Management Risk management

The capital structure of the Company consists of cash and cash equivalents and equity attributable to equity shareholders of the Company which comprises issued share capital (including premium) and accumulated reserves disclosed in the Statement of Changes in Equity.

The Company's capital management objective is to achieve an optimal weighted average cost of capital while continuing to safeguard the Company's ability to meet its liquidity requirements.

A. Fair value hierarchy

The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into Level 1 to Level 3, as described below:

Quoted prices in an active market (Level 1): This level of hierarchy includes financial assets that are measured by reference to quoted prices (unadjusted) in active markets for identical assets or liabilities. This category consists of investment in quoted mutual funds.

Valuation techniques with observable inputs (Level 2): This level of hierarchy includes financial assets and liabilities, measured using 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).

Valuation techniques with significant unobservable inputs (Level 3): This level of hierarchy includes financial assets and liabilities measured using inputs that are not based on observable market data (unobservable inputs). Fair values are determined in whole or in part, using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data. This level of hierarchy includes Company's investment in equity shares which are unquoted or for which quoted prices are not available at the reporting dates.

B. Valuation technique used to determine fair value

(a) The Company does not have any exposure in derivatives.

(b) Investments carried at fair value are generally based on market price quotations. However in cases where quoted prices are not available the management has involved valuation experts to determine the fair value of the investments. Different valuation techniques have been used by the valuers for different investments. These investments in equity instruments are not held for trading. Instead, they are held for long term strategic purpose. The Company has chosen to designate this investments in equity instruments at FVOCI since, it provides a more meaningful presentation. Cost of certain investments in equity instruments have been considered as an appropriate estimate of fair value because of a wide range of possible fair value measurements and cost represents the best estimate of fair value within that range.

(c) The carrying amounts of remaining financial assets and liabilities are considered to be the same as their fair values.

(d) Management uses its best judgement in estimating the fair value of its financial instruments. However, there are inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates presented above are not necessarily indicative of the amounts that the Company could have realised or paid in sale transactions as of respective dates. As such, fair value of financial instruments subsequent to the reporting dates may be different from the amounts reported at each reporting date.

(e) Market values in cases of some quoted and unquoted investments are not available, hence the fair value has been considered as market values in such cases.

In the course of its business, the Company is exposed primarily to fluctuations in equity prices, liquidity and credit risk, which may adversely impact the fair value of its financial instruments. The Company has a risk management policy which not only covers the foreign exchange risks but also other risks associated with the financial assets and liabilities such as interest rate risks and credit risks. The risk management policy is approved by the Board of Directors. The risk management framework aims to:

(i) create a stable business planning environment by reducing the impact of currency and interest rate fluctuations on the Company's business plan.

(ii) achieve greater predictability to earnings by determining the financial value of the expected earnings in advance.

Other receivables as stated above are due from the parties under normal course of the business and as such the Company believes exposure to credit risk to be minimal.

(ii) Liquidity risk

Liquidity risk refers to that risk where the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements.

Post Demerger of Cement Undertaking, the Company's liquidity position has improved with reduced financial obligations. The company maintains sufficient liquidity through fixed deposits and mutual fund investments.

(a) Maturities of financial liabilities

The tables below analyse the Company's financial liabilities into relevant maturity groupings based on their contractual maturities:

(iii) Market risk

(a) Foreign currency risk

The Company has not entered into any foreign currency borrowing, trade payables, or related transaction and, accordingly, has no exposure to foreign exchanged risk arising from exchange rate fluctuation.

(b) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. As on 31st March 2026, The Company does not have any borrowing, and hence is not exposed to significant interest rate risk.

(iv) Price risk (a) Exposure

The Company's exposure to equity securities price risk arises from investments held by the Company and classified in the balance sheet at fair value through OCI and Profit & Loss account. To manage its price risk arising from investments in equity securities, the Company diversifies its portfolio. In general, these investments are not held for trading purposes.

33. Segment reporting

Pursuant to scheme of arrangement, the Company demerged its cement business during the previous year. Accordingly, the Company has no separate reportable segments (business and/ or geographical) in accordance with the requirements of Ind AS 108, Operating Segments, and therefore no segment disclosures have been provided in these standalone financial statements.

34. The Ministry of Corporate Affairs (MCA) has prescribed a new requirement for companies under the proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules 2021 requiring companies, which uses accounting software for maintaining its books of account, shall use only such accounting software which has a feature of recording audit trail of each and every transaction, creating an edit log of each change made in the books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled.

The Company has used an accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has been operated throughout the year for all relevant transactions recorded in the software. Further, the Company ensured that the audit trail feature has not been tampered with, where such feature is enabled. Furthermore, the audit trail has been preserved by the Company as per the statutory requirements for record retention, where such feature is enabled.

35 (a) Pursuant to the Scheme of Arrangement approved by the Board of Directors on November 30, 2023, and sanctioned by the Hon'ble National Company Law Tribunal, Kolkata Bench and Mumbai Bench on November 14, 2024 and November 26, 2024 respectively, the Cement Business of the Company was demerged and transferred to UltraTech Cement Limited with effect from the Appointed Date of April 1, 2024; the Scheme became effective on March 1, 2025 upon fulfilment of all conditions precedent. In accordance with Clause 10.1 of the Scheme, the Company has transferred the assets and liabilities of the Demerged Undertaking at their book values as of the date immediately preceding the Effective Date and derecognized the same from its books; the fair value of such assets and liabilities has been debited to general reserve/retained earnings, representing a distribution of non-current assets to shareholders, and the difference between the book value and fair value has been recognized in the Statement of Profit and Loss.

38. Going Concern

The Company has incurred losses during the current year amounting to Rs 20,686.58 Lakhs.During the current year, certain members of Promoter / Promoter Group of the Company have entered into a Share Purchase Agreement dated December 04, 2025 ("SPA") with Frontier Warehousing Limited ("Acquirer") to sell 13,29,69,279 equity shares representing 42.80% of the share capital, having face value of ¹ 10 each, in terms of Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 and subsequent amendments thereto ("SEBI (SAST) Regulations, 2011"). The Acquirer has complied with the Open Offer as per regulatory requirements and is in the process of completing the SPA. In addition to the continuing support by Promoter / Promoter group, the Acquirer has also expressed its commitment to the Company by way of letter of support issued to the Company to provide financial assistance to cover all liabilities falling due in foreseeable future. Accordingly, these financial statements have been prepared on the basis that the Company will continue as a going concern.

39. a) The Government of India has consolidated existing labour legislations into four comprehensive labour codes

effective November 21, 2025. These codes include Code on wages 2019, Code on Social Security 2020, Industrial Relation Code 2020, and Occupational Safety, Health and Working Condition Code 2020 (collectively referred to as the New Labour Codes). The Company has evaluated the incremental impact of these changes in accordance with the guidance issued by the Institute of Chartered Accountants of India and has recognized the additional gratuity and leave liability basis the actuarial valuation. Further, the Company continues to monitor the finalisation of State Rules and clarifications issued by the respective State Governments on other aspects of the New Labour Codes and will give appropriate accounting effect to such developments as and when required.

b) The Company's financial statements are presented in lakhs instead of crores, to align with Schedule Ill to the Companies Act, 2013 (Ind AS compliant) and the ICAI Guidance Note on Division Il - Ind AS Schedule IIl. This modification impacts presentation only and does not alter the underlying financial amounts.

40. Other statutory information

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

(ii) The Company does not have any charge or satisfaction of charge except the following, which is yet to be satisfied with ROC beyond the statutory period:

(iii) The Company has not traded or invested in crypto-currency or virtual currency during the financial year.

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

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

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

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

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

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

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

(vii) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

(viii) 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.

(ix) The Company has no transactions with any struck off companies during the current financial year.

(x) Figures for the previous year have been regrouped/reclassified wherever necessary to confirm to current period's classification.