The Board of Directors of the Company, at its meeting held on September 22, 2025, had approved the draft Composite Scheme of Amalgamation and Arrangement amongst Refex Green Mobility Limited ("Transferor Company” or "RGML”), Refex Industries Limited ("Transferee Company” or "Demerged Company” or "RIL”) and Refex Mobility Limited ("Resulting Company” or "RML”) and their respective shareholders and creditors, under Sections 230 to 232 and other applicable provisions of the Companies Act, 2013 read with the rules framed thereunder ("Scheme”), subject to receipt of requisite regulatory approvals, as may be applicable.

The Company has received Observation Letters containing ‘No Adverse Observations' from BSE Limited and National Stock Exchange of India Limited on March 16, 2026, in relation to the aforesaid Scheme. Further, the Company has filed the application/petition in connection with the Scheme before the Hon'ble NCLT, Chennai bench on March 26, 2026.Accordingly, the Company has disclosed the investment and loans and advances given to subsidiary in Asset held for sale.

During the financial year ended March 31, 2026, the Authorized Share Capital of the Company has been increased from Rs. 4,000 Lakhs divided into 17,50,00,000 (Seventeen Crore Fifty Lakh Only) equity shares of ^2/- each and 5,00,000 (Five Lakh) cumulative redeemable preference shares of TI00 each to Rs. 10,000 Lakhs divided into 47,50,00,000 (Forty-Seven Crore and Fifty Lakh) equity shares of ^2/- each and 5,00,000 (Five Lakh) cumulative redeemable preference shares of TI00 each.

During the year, pursuant to the conversion of warrants, the Board of Directors, through a circular resolution dated October 3, 2025, approved the allotment of 75,75,000 equity shares of ^2/- each to Refex Holding Private Limited, Promoter of the Company. In addition, the Company allotted an aggregate of 4,42,118 equity shares of ^2/- each pursuant to the exercise of vested stock options under the Refex Employee Stock Option Scheme, 2021 ("ESOP 2021”). Accordingly, 98,334 equity shares were allotted on June 5, 2025, 2,73,925 equity shares were allotted on November 20, 2025, and 69,859 equity shares were allotted on February 27, 2026, as approved by the Nomination and Remuneration Committee.

Consequent to the aforesaid allotments, the paid-up equity share capital of the Company increased by ^1,60,34,236 during the year, from ^25,83,64,546 comprising 12,91,82,273 equity shares as at April 1, 2025 to ^27,43,98,782 comprising 13,71,99,391 equity shares as at March 31, 2026.

Terms/rights attached to equity shares:

The Company has only one class of equity shares having a par value of face value of Rs. 2/- per share. The holders of the equity shares are entitled to receive dividends as declared from time to time, and are entitled to voting rights proportionate to their share holding at the meetings of shareholders

i. As on 31.3.2026 the company have term loan from Canara bank ltd for Rs.3,281.27 Lakhs. This loan is secured by Commercial property, Movable fixed assets and current assets of the company and personal guarantee by Mr. Anil Jain (Managing director) of the company.

ii. The company has a working capital demand loan from HDFC Bank Ltd, ICICI Ltd, Yes Bank Ltd, Jio credit ltd for Rs. 11,820 Lakhs. This is secured by hypothecation of present and future stock of raw materials, work-inprogress, finished goods, book debts and materials in transit.

iii. The company also has Cash credit facility from HDFC Bank, Yes Bank ltd, Canara Bank ltd, ICICI Bank ltd, Union Bank of India (UBI) repayable on demand. This is secured by exclusive charge on current assets, movable and immovable fixed asset of the company and immovable fixed asset of Refex Holding Pvt Ltd (Holding company). Also secured by personal guarantee of Mr. Anil Jain (Managing director of the company) and corporate guarantee given by Refex Holding Pvt Ltd (Holding company).

The company has incurred Rs. 95.30 lakhs during the year as CSR activities towards providing financial assistance for children education, conservation of natural resources and ensuring environmental sustainability.

As on 1.4.2025 an amount of Rs.521.19 Lakhs has been excessively contributed by the company for CSR purpose.

During the year FY 2025-26 Rs. 95.30 Lakhs has been contributed by the company for CSR purpose. Out of the opening and current year contribution Rs.335 Lakhs has been moved to CSR expenses and the remaining Rs. 281.48 Lakhs is shown in other current assets which the company intends to carry forward for subsequent financial year.

Additional information pursuant to Schedule III of the Companies Act, 2013

Note 34 - Report on other legal and regulatory requirements and commitments

Litigations involving our company

Our Company is involved in certain legal proceedings, which are pending at varying levels of adjudication at different forums. The outstanding matters set out below include details of criminal proceedings, tax proceedings, statutory and regulatory actions, and other material pending litigation involving our Company.

We cannot assure you that these legal proceedings will be decided in favour of our Company, or that no further liability will arise out of these proceedings. Further, such legal proceedings could divert management time and attention and consume financial resources. Any adverse outcome in any of these proceedings may adversely affect our profitability and reputation and may have an adverse effect on our results of operations and financial condition.

1. Against our company

Pending matters, which, if they result in an adverse outcome, would not materially and

adversely affect the operations or the financial position of our Company:

1. Savita Banjare has filed a Motor Accident Claim (MACT 1368 of 2024) against Refex Industries Limited and Oriental Insurance before the District and Sessions Judge, Bilaspur for a claim amount of Rs. 63,80,000/-. Certified copies of the pleadings have been filed. The matter is currently posted for filing of the written statement by the Insurance Company.

2. Samunda Bai has filed a Motor Accident Claim (MACT 1369 of 2024) against Refex Industries Limited and Oriental Insurance before the District and Sessions Judge, Bilaspur for a claim amount of Rs. 62,82,000/-. Certified copies of the pleadings have been filed. The matter is currently posted for filing of the written statement by the Insurance Company.

3. Saroj Bai Ravi Kumar has filed a Motor Accident Claim (MACT 916 of 2024) against Oriental Insurance (Driver) and Refex Industries Limited before the District and Sessions Judge, Bilaspur for a claim amount of Rs. 23,80,000/-. Certified copies of the pleadings have been filed. The matter is currently posted for the Respondent's evidence.

2. Filed by our company

1. Refex Refrigerants Limited has filed the case against United India Insurance (seeking demand for Rs. 4,84,93,052.00 as a claim under insurance for the blast in the ISO tanker at RIL factory premises. The initial claim was rejected by the Insurance Company. Hence, the Commercial Suit bearing OSA(CAD)/28/2022 & A/4326/2018. The matter is pending before the Commercial Division, Madras High Court and was last heard on 28.04.2026 for final arguments and has been further adjourned.

2. Refex Industries Limited has filed a case against RM Enterprises (STC/PC/0003658/2022) before the Fast Track Court, Saidapet, Chennai under Section 138 r/w 142 of the Negotiable Instruments Act. The cylinders have not been released by RM Enterprises. While the principal amount has been paid, the interest amount is yet to be paid. A non-bailable warrant is pending service as ordered by the Court.

3. Refex Industries Limited has filed a suit (COS/469/2025) against VR Enterprises before the Principal Judge, Principal Commercial Court, Chennai for recovery of amounts towards invoices raised on the Respondent for a sum of Rs. 33,41,751/-. The Respondent has filed a Vakalath through Adv. M. Ganesh. The next date of hearing is 03.06.2026

4. Refex Industries Limited has filed a suit (COS/605/2025) against Shekhar Refrigeration before the Principal Judge, Principal Commercial Court, Chennai for recovery of amounts towards invoices raised on the Respondent for a sum of Rs. 29,45,233/-. The private notice sent to the defendant's second address has been returned. Steps are being taken for paper publication. The matter is called on 08.06.2026

5. Refex Industries Limited has filed a suit (COS/592/2025) against Refrigeration Spare Centre before the Principal Judge, Principal Commercial Court, Chennai for recovery of amounts towards invoices raised on the Respondent for a sum of Rs. 4,11,635/-. The matter is currently posted for ex-parte evidence

6. Refex Industries Limited has filed a suit (COS/606/2025) against Sikelan Chemicals before the Principal Judge, Principal Commercial Court, Chennai for recovery of amounts towards invoices raised on the Respondent for a sum of Rs. 5,12,549/-. The private notice sent to the defendant's second address has been returned. Steps are being taken for paper publication.

7. Refex Industries Limited has filed a suit (COS/607/2025) against Atmos Industries before the Principal Judge, Principal Commercial Court, Chennai for recovery of amounts towards invoices raised on the Respondent for a sum of Rs. 36,95,272/-. The original paper publication was filed, however the defendant's cause title in the paper publication did not tally with the defendant's cause title in the suit. Accordingly, a fresh paper publication has been directed.

8. Refex Industries Limited has filed a complaint (STC/PC/6035/2025) against Atmos Industries before the Fast Track Court, Saidapet, Chennai under Section 138 r/w 142 of the Negotiable Instruments Act for a claim amount of Rs. 8,89,598/-. The cylinders have not been released by Atmos Industries and the outstanding dues are yet to be paid.

9. Refex Industries Limited has filed a complaint (STC/PC/6034/2025) against New Refair Techno before the Fast Track Court, Saidapet, Chennai under Section 138 r/w 142 of the Negotiable Instruments Act for a claim amount of Rs. 14,25,000/-. Certain copper tubes have not been released by New Refair Techno and the outstanding dues are yet to be paid. The complainant was absent on the last date; a petition was filed and CMP No./26 was allowed.

10. Refex Industries Limited has filed a complaint against Varalakshmi Traders before the Fast Track Court, Saidapet, Chennai under Section 138 r/w 142 of the Negotiable Instruments Act for a claim amount of Rs. 98,486/-. Cans are to be returned and outstanding dues are to be paid. The case number is yet to be assigned and the matter is yet to be listed.

11. Refex Industries Limited has filed a complaint against Bharat Refrigeration Works before the Fast Track Court, Saidapet, Chennai under Section 138 r/w 142 of the Negotiable Instruments Act for a claim amount of Rs. 5,14,678/-. Cans are to be returned and outstanding dues are to be paid. The case number is yet to be assigned and the matter is yet to be listed.

12. Refex Industries Limited has filed an appeal (C/40486/2021) against the Commissioner of Customs (II), Chennai before CESTAT, Chennai. Two containers with Bill of Entries 4926248 and 4925897 are held in the CFS and are to be re-exported, with the containers incurring significant demurrage charges. It is submitted that the order of the High Court passed in W.P. 20939 of 2017 is yet to be complied with.

13. Refex Industries Limited has filed an appeal (IA (IBC)/1263/2025) before the NCLT against the rejection of its claim arising from the liquidation of Landmark Housing Projects Chennai Private Limited, filed against the Liquidator Ebenezer Inbaraj. The last date of hearing is 01.04.2026 and the matter has been reserved for orders.

Litigation involving issues of moral turpitude or criminal liability, which are currently pending or

have arisen in the preceding last ten years:

None.

Litigation involving material violations of statutory regulations which are currently pending or

have arisen in the preceding last ten years:

1. Company has filed an appeal before the Hon'ble Commissioner of Income Tax Appeals at Chennai (the "appellate authority”) as aggrieved by an order of Assessing officer, Chennai under Section 143(3) r.w.s 147 of Income Tax Act 1961 which was passed against our Company. This matter relates to issue of Long-Term capital gains on sale of land and excess depreciation claimed during the Financial Year 2013-14 which is having the tax demand to the tune of Rs.821.13 Lakhs for the assessment year 2014-15 which was raised by an assessing officer by way of issue of an assessment order dated March 31, 2022 under Section 143(3) r.w.s 147 of Income Tax Act, 1961. Further, the company has filed an application for rectification and by processing the rectification application, the demand is reduced to Rs. 751.16 Lakhs. However, the matter is pending before CIT(A) for disposal.

2. Company has filed an appeal before the Hon'ble Commissioner of Income Tax (Appeals) at Chennai (the "appellate authority”) as aggrieved by an order of Assessing officer, Chennai under Section 143(3) of Income Tax Act 1961 which was passed against our Company. This matter pertains to the disallowances of purchases and cash credits during the Financial Year 2019-20 which resulted in a tax demand amounting to Rs. 4,086.66 lakhs for the assessment year 2020-21 which was raised by an assessing officer by way of issue of an assessment order dated September 30, 2022 under Section 143(3) of Income Tax Act, 1961. However, the matter is pending before CIT(A) for disposal.

3. Company has filed an appeal before the Hon'ble Commissioner of Income Tax Appeals at Chennai (the "appellate authority”) as aggrieved by an order of Assessing officer, Chennai under Section 143(3) of Income Tax Act 1961 which was passed against our Company. This matter pertains to the disallowances of purchases and cash credits during the Financial Year 2020-21 and disallowance u/s 14A which resulted in a tax demand amounting to Rs. 1,154.35 Lakhs for the assessment year 2021-22 which was raised by an assessing officer by way of issue of an assessment order dated December 31, 2022 under Section 143(3) of Income Tax Act, 1961. Further, the company has filed an application for rectification and by processing the rectification application, the demand is reduced to Rs. 1136.78 lakhs. However, the matter is pending before CIT(A) for disposal.

4. Company has filed a Writ petition to quash assessment order passed by the Deputy Commissioner of Income Tax on 31.05.2023 against the company for the assessment year 2016-17 and raised a demand of Rs. 3567.21 Lakhs. The department has been completed without adhering to the provisions of section 144A of the Income Tax Act. Therefore, considering the merits, the Hon'ble Madras High court has granted an interim stay on the demand. However, Company has received a favourable order by quashing the assessment order on 28-04-2026, therefore demand has been nullified as on date.

5. Company has filed to file an appeal before the Hon'ble Commissioner of Income Tax Appeals at Chennai (the "appellate authority”) as aggrieved by an order of Assessing officer, Chennai under Section 147 of Income Tax Act 1961 which was passed against our Company. This matter pertains to the disallowances of purchases and cash credits during the Financial Year 2018-19 which resulted in a tax demand amounting to 4,731.69 Lakhs for the assessment year 2019-20 which was raised by an assessing officer by way of issue of an assessment order dated March 31, 2024 under Section 147 of Income Tax Act, 1961. Further, the company has filed an application for rectification and by processing the rectification application, the demand is reduced to Rs. 4628.17 lakhs. However, the matter is pending before CIT(A) for disposal.

6. The Deputy Commissioner of Income Tax has passed the assessment order for the AY 2018-19 on 23.03.2026 and raised a demand of Rs. 72.31 Lakhs. Against which, company has filed a Writ petition to quash assessment order on the ground that the department has been completed the assessment without adhering to the provisions of section 153C of the Income Tax Act. The case is yet to be posted for hearing.

7. The Company will be filing an appeal before the Goods and Services Tax Appellate Tribunal (GSTAT), being aggrieved by an order passed by the Commissioner of Central Tax (Appeals), Chennai, under Section 74 of the CGST Act against the Company on 15 May 2025. The matter relates to the availment of input tax credit for the period July 2017 to March 2019 from the suppliers whose GSTIN's were inactive. The demand order comprises tax of Rs.356.46 lakhs and a penalty of Rs.356.46 lakhs. The appeal will be filed in due course.

8. Company has filed a writ petition to quash the assessment order passed by an order of before State tax officer(C-829), Nodal-04, Mumbai under Section 73 of The CGST Act which was passed against our Company on 29th April 2024. The matter relates to availment of input tax credit for the period July 2018 to March 2019 from the suppliers whose GSTIN's were inactive. The demand order comprises Tax of Rs.144.33 Lakhs Interest Rs. 179.47 Lakhs and Penalty of Rs.33.65 Lakhs. The Hon'ble Bombay High Court has granted an interim stay on the demand

9. Company has filed an appeal before The Hon'ble commissioner of GST (Appeals) (the ""Appellate Authority"") at Jaipur, as aggrieved by an order of Deputy Commissioner of Commercial Taxes, Circle-B, Rajasthan under Section 74 of The CGST Act which was passed against our Company on 24th December 2024. The matter relates to the availment of input tax credit for the period July 2017 to March 2018 from the suppliers whose GSTIN's were inactive. The demand order comprises Tax of Rs.164.28 Lakhs, Interest of Rs.197.15 lakhs and Penalty of Rs.164.28 Lakhs. Personal Hearing was attended on September 04th, 2025 and the matter is pending for disposal

10. Company has filed an appeal before The Hon'ble commissioner of GST (Appeals) (the ""Appellate Authority"") at Jaipur as aggrieved by an order of Deputy Commissioner of Commercial Taxes, Circle-B, Rajasthan under Section 74 of The CGST Act which was passed against our Company on 27th December 2024. The matter relates to the availment of input tax credit for the period April 2018 to March 2019 from the suppliers whose GSTIN's were inactive. The demand order comprises Tax of Rs.6.88 Lakhs, Interest of 7.01 lakhs and Penalty of Rs.6.88 Lakhs. Personal Hearing was attended on September 04th, 2025 and the matter is pending for disposal

11. Company has filed an appeal before the before The Hon'ble commissioner of GST (Appeals) (the "Appellate Authority") at Jaipur as aggrieved by an order of Deputy Commissioner of Commercial Taxes, Circle-B, Rajasthan under Section 74 of The CGST Act which was passed against our Company on 27th December 2024. The matter relates to the availment of input tax credit for the period April 2019 to March 2020 from the suppliers whose GSTIN's were inactive. The demand order comprises of Tax of Rs.32.58 Lakhs, Interest-27.37 Lakhs and Penalty -Rs.32.58 Lakhs. Personal Hearing was attended on September 04th, 2025 and the matter is pending for disposal

12. Company has filed an appeal before The Hon'ble commissioner of GST (Appeals) (the "Appellate Authority") at Jaipur as aggrieved by an order of Deputy Commissioner of Commercial Taxes, Circle-B, Rajasthan under Section 74 of The CGST Act which was passed against our Company on 27th December 2024. The matter relates to the availment of input tax credit for the period April 2020 to March 2021 from the suppliers whose GSTIN's were inactive. The demand order comprises Tax of Rs.147.34 Lakhs, Interest of Rs.97.24 Lakhs and Penalty of Rs.147.34 Lakhs. Personal Hearing was attended on September 04th, 2025 and the matter is pending for disposal

13. Company has filed an appeal before The Hon'ble commissioner of GST (Appeals) (the "Appellate Authority") at Jaipur as aggrieved by an order of Deputy Commissioner of Commercial Taxes, Circle-B, Rajasthan under Section 74 of The CGST Act which was passed against our Company on 27th December 2024. The matter relates to the availment of input tax credit for the period April 2021 to March 2022 from the suppliers whose GSTIN's were inactive. The demand order comprises Tax of Rs.2.97 Lakhs, Interest of Rs.1.71 Lakhs and Penalty of Rs.2.96 Lakhs. Personal Hearing was attended on September 04th, 2025 and the matter is pending for disposal

14. Company has filed an appeal before The Hon'ble commissioner of GST (Appeals) (the "Appellate Authority") at Bhopal, as aggrieved by an order of Additional Commissioner, CGST and Central Excise, Bhopal under Section 74 of The CGST Act which was passed against our Company on 27th March 2025. The matter relates to availment of input tax credit for the period April 2018 to September 2020 from the suppliers whose GSTIN's were inactive. The demand order comprises Tax of Rs.1465.96 Lakhs, Penalty-Rs.1465.96 Lakhs. However, the matter is pending before Commissioner of Central Tax at Bhopal and is expected to come up for hearing in due course

15. Company has filed an appeal before The Hon'ble commissioner of GST (Appeals) (the "Appellate Authority") at Visakhapatnam, as aggrieved by an order of Assistant Commissioner, Visakhapatnam central GST division, Visakhapatnam under Section 74 of The CGST Act which was passed against our Company on 28th March 2025. The matter relates to availment of input tax credit for the period October 2018 to March 2019 from the suppliers whose GSTIN's were inactive. The demand order comprises penalty of Rs. 71.16 lakhs. However, the matter is pending before Commissioner of Central Tax at visakhapatnam and is expected to come up for hearing in due course

16. Company has filed an appeal before the Hon'ble commissioner of GST (Appeals) (the "Appellate Authority") at Jodhpur, being aggrieved by an order of Deputy Commissioner, Jodhpur State Tax, Jodhpur under Section 74(9) of The CGST Act which was passed against our Company on 18th Dec 2025. The matter relates to availment of input tax credit for the period April 2018 to March 2019 from the suppliers whose GSTIN's were inactive. The demand order comprises Tax of Rs.16.88 Lakhs, Interest of Rs.20.55 Lakhs and Penalty of Rs.16.88 Lakhs. However, the matter is pending before Commissioner of Central Tax at Jodhpur and is expected to come up for hearing in due course

17. Company has filed an appeal before The Hon'ble commissioner of GST (Appeals) (the "Appellate Authority") at Raipur, as aggrieved by an order of Assistant Commissioner, Raipur Central GST & central Excise, Raipur under Section 73 of The CGST Act which was passed against our Company on 11th Dec 2025. The matter relates to alleged short payment of liability on account of inward supplies liable to reverse Charge for the period April 2021 to Mar 2022 basis GSTR-2A auto-population. The demand order comprises Tax of Rs. 31.90 Lakhs, penalty Rs.3.39 lakhs. However, the matter is pending before Commissioner of Central Tax at Raipur and is expected to come up for hearing in due course

18. Company has filed an appeal before The Hon'ble commissioner of GST (Appeals) (the "Appellate Authority") at Raipur, being aggrieved by an order of Assistant Commissioner, Raipur CGST & central Excise, Raipur under Section 74 of The CGST Act which was passed against our Company on 11th Nov 2025. The matter relates to availment of input tax credit for the period April 2018 to Mar 2019 from the suppliers whose GSTIN's were inactive. The demand order comprises tax of Rs.503.45 Lakhs and penalty of Rs.503.45 Lakhs. However, the matter is pending before Commissioner of Central Tax at Raipur and is expected to come up for hearing in due course

19. Company has filed an appeal before the Hon'ble commissioner of GST (Appeals) (the "Appellate Authority") at Mysore, being aggrieved by an order of Joint Commissioner of Central Tax, Bengaluru West GST Commissionerate, Bengaluru under Section 74 of The CGST Act which was passed against our Company on 18th July 2025. The matter relates to availment of input tax credit for the period April 2019 to Mar 2020 from the suppliers whose GSTIN's were inactive. The demand order comprises tax of Rs.446.39 Lakhs and penalty of Rs.446.39 Lakhs. However, the matter is pending before Commissioner of Central Tax at Mysore and is expected to come up for hearing in due course

b) Fair Value Hierarchy

• Level 1 - Quoted prices (unadjusted) 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).

c) Valuation Technique used to determine Fair Value:

Specific valuation techniques used to value financial instrument -:

The non-current investment as on 31.3.2025, classified as Fair value through Profit & loss account for Rs. 3074.47 Lakhs is investment in Alternative Investment Fund, with a portfolio of different investments and the Fair Value analysis incorporates assessment of each investment made by the Fund as of the valuation date. Based on the valuation summary prepared by registered valuer the company values the investment as on the date of financial statement. This investment is sold during the year FY 2025-26, hence carrying amount as on 31.3.2026 is Nil.

The Company's activities expose to limited financial risks: market risk, credit risk and liquidity risk. The Company's primary focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance.

Market Risk

Market risk is the risk of loss of future earnings or fair values or future cash flows that may result from a change in the price of a financial instrument.

The company is exposed to market risk primarily related to foreign exchange rate risk (currency risk), Interest rate risk and the market value of its investments.

Credit Risk

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. It principally arises from the Company's Trade Receivables, Retention Receivables, Advances and deposit(s) made.

Trade Receivables

The company has outstanding trade receivables amounting to Rs. 73,730 Lakhs as at March 31,2026 and Rs. 67,363 Lakhs as at March 31, 2025. Trade receivables are typically unsecured and are derived from revenue earned from customers. Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer. The company is not exposed to concentration of credit risk to any one single customer. Default on account of Trade Receivables happens when the counterparty fails to make contractual payment when they fall due.

Expected Credit Loss (ECL) on Trade Receivables:

The Company applies the simplified approach prescribed under Ind AS 109 for recognition of Expected Credit Loss (""ECL"") on trade receivables and contract assets.

The Company assesses impairment of trade receivables at each reporting date based on management's estimate of the recoverability of the outstanding balances. The ECL allowance is determined on a case-to-case basis after considering all relevant facts and circumstances available as at the reporting date.

While evaluating the recoverability of receivables, management considers factors including, but not limited to:

• Ageing of receivables and historical payment trends;

• Creditworthiness and financial position of the customer;

• Past collection experience with the customer;

• Existence of disputes, claims, litigations or contractual issues;

• Subsequent receipts after the reporting date;

• Industry and economic conditions impacting the customer;

• Availability of collateral, security deposits, bank guarantees or other credit enhancements; and Any other information indicating a significant increase in credit risk or impairment.

Receivables assessed as fully recoverable are not provided for. Specific provisions are created against receivables where, based on management's assessment, there exists an expectation of credit loss. The amount of provision represents management's best estimate of the expected shortfall in contractual cash flows considering all reasonable and supportable information available at the reporting date.

The Company reviews the adequacy of the impairment allowance at each reporting date and adjusts the provision based on changes in facts, circumstances and expectations of recovery. Actual credit losses may differ from these estimates.

Receivables considered irrecoverable are written off upon completion of the Company's internal recovery assessment and approval process.

Liquidity Risk

Our liquidity needs are monitored based on the monthly and yearly projections. The company's principal sources of liquidity are cash and cash equivalents, cash generated from operations, Term loan from Banks, and Contribution in the form of share capital.

We manage our liquidity needs by continuously monitoring cash inflows and by maintaining adequate cash and cash equivalents. Net cash requirements are compared to available cash in order to determine any shortfalls.

Short term liquidity requirements consist mainly of sundry creditors, expense payable, employee dues, repayment of loans and retention & deposits arising during the normal course of business as of each reporting date. We maintain a sufficient balance in cash and cash equivalents to meet our short-term liquidity requirements.

We assess long term liquidity requirements on a periodical basis and manage them through internal accruals. Our non-current liabilities include Unsecured Loans from Promoters, Term Loans from Banks, Retentions & deposits.

The table below provides details regarding the contractual maturities of non-derivative financial liabilities. The table have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the company can be required to pay.

Foreign currency exchange rate risk

The fluctuation in foreign currency exchange rates does not have material impact on the statement of profit or loss and other comprehensive income and equity, where any transaction references more than one currency or where assets / liabilities are denominated in a currency other than the functional currency of the respective entities. The company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks and the impact of which is found to be immaterial.

The change in the fair value of a hedging instrument is recognised in the statement of profit or loss as other expense. The change in the fair value of the hedged item attributable to the risk hedged is recorded as part of the carrying value of the hedged item and is also recognised in the statement of profit or loss as other expense.

For fair value hedges relating to items carried at amortised cost, any adjustment to carrying value is amortised through profit or loss over the remaining term of the hedge using the EIR method. The EIR amortisation may begin as soon as an adjustment exists and no later than when the hedged item ceases to be adjusted for changes in its fair value attributable to the risk being hedged.

If the hedged item is derecognised, the unamortised fair value is recognised immediately in profit or loss.

When an unrecognised firm commitment is designated as a hedged item, the subsequent cumulative change in the fair value of the firm commitment attributable to the hedged risk is recognised as an asset or liability with a corresponding gain or loss recognised in profit or loss.

The Company's objectives when managing capital are to safeguard the Company's ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure.

In order to maintain or adjust the capital structure, the Company may adjust the number of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets or by adequate funding by the shareholders to absorb the losses of the Company.

The Company's capital comprises equity share capital, retained earnings and other equity attributable to equity holders. The primary objective of Company's capital management is to maximize shareholders value. The Company manages its capital and makes adjustment to it considering the changes in economic and market conditions. The total share capital as on March 31, 2026 is Rs. 27,43,98,782 (Previous Year: Rs. 25,83,64,546)

Note - 37 Disclosure in respect of Indian Accounting Standard (Ind AS)-19 “Employee Benefits"

1) General description of various defined employee's benefits schemes is as under:

a) Provident Fund:

The company's Provident Fund is managed by Regional Provident Fund Commissioner. The company pays fixed contribution to provident fund at pre-determined rate.

b) Gratuity:

Gratuity is a defined benefit plan, provided in respect of past services based on the actuarial valuation carried out by actuary and corresponding contribution to the fund is expensed in the year of such contribution.

The scheme is funded by the company and the liability is recognized on the basis of contribution payable to the insurer, i.e., the Life Insurance Corporation of India, however, the disclosure of information as required under Ind AS-19 have been made in accordance with the actuarial valuation.

Note 44 - Discontinuing operations:

Power trading segment has not been a significant profit driver for Refex, with low volumes, lower margins, high compliance costs, and limited strategic fit with our core logistics and energy infrastructure strengths. Hence the Board on its meeting held on August 12, 2025, has approved the discontinuation of Power-T rading business, subject to all statutory and Regulatory approvals. This process includes Surrendering the trading license, settling all statutory obligations, and transparently communicating the rationale for exiting to key stakeholders. As a result, the activity qualifies as a discontinued operation under Ind AS 105. Accordingly, the Company has disclosed the profit from discontinuing operations separately from the profit from continuing operations in the Statement of Profit and Loss.

Further, The Board of Directors approved the discontinuation of the Refrigerant Gases business segment at its meeting held on January 21, 2026. The segment accounted for approximately 2.50% of the Company’s total revenue and was impacted by operational and financial challenges due to heightened competition and pricing pressures. The discontinuation is intended to enable better allocation of management focus and capital towards the Company’s core, higher-growth businesses, thereby improving capital efficiency and long-term value creation. As a result, the activity qualifies as a discontinued operation under Ind AS 105. Accordingly, the Company has disclosed the profit from discontinuing operations separately from the profit from continuing operations in the Statement of Profit and Loss.

Note 45 - Additional regulatory information required by Schedule III

i) Details of Benami Property held

During the year no proceedings have been initiated on or are pending against the company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

ii) Borrowing secured against current assets

The company has borrowings from banks and financial institutions on the basis of security of current assets. The quarterly returns or statements of current assets filed by the group with banks and financial institutions are in agreement with the books of accounts.

iii) Willful defaulter

The company have not been declared wilful defaulter by any bank or financial institution or government or any government authority.

iv) Relationship with struck off companies

None

v) Compliance with number of layers of companies

The company has complied with the number of layers prescribed under the Companies Act, 2013.

vi) Compliance with approved scheme(s) of arrangements

The company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

vii) Utilisation of borrowed funds and share premium

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 group (Ultimate Beneficiaries) or

b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries 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 group 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

viii) Undisclosed Income

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

ix) Details of crypto currency or virtual currency

The company has not traded or invested in crypto currency or virtual currency during the current or previous year.

x) Valuation of PP&E, intangible asset and investment property

The company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous year.

Note 46 - The Company has accounting software for maintaining its books of account for the financial year ended March 31,2026, which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software. The audit trail has been preserved by the Company as per the statutory requirements for record retention.

Note 47 - The figures for the corresponding previous year have been regrouped / reclassified / restated wherever necessary, to make them comparable.

Note 48 - Approval of Financial Statements

The financial statements were approved for issue by the Board of Directors on 26-5-2026