Note 1: In the event of a disposal arising at any time in the future, the Company has received an undertaking (which would be operative as per the provisions of law prevailing at that point of time) from a promoter director confirming his willingness to compensate the Company for shortfall, if any, in the carrying value as compared with its recoverable value. Such undertaking would enable the Company to safeguard the carrying value of these assets from impairment, if any, in the future.

Note 2: Terms of 0% Compulsorily Convertible Debentures (CCD):

(a) The CCD shall be unsecured

(b) The CCD shall have tenure of not exceeding 10 years

(c) Each CCD shall be convertible into such number of fully paid up equity shares of ' 10 each solely at the option of the Board of Directors of ABD Dwellings Private Limited and Madanlal Estates Private Limited. The holders of CCD shall not have any right to opt for conversion at any time during the period of maturity.

(d) The CCD do not themselves give to the holder thereof any rights of shareholders of the Company

(e) The new equity shares issued on conversion of CCD shall be in dematerialised or physical form and subject to the Memorandum and Articles of Association of the Company and shall rank pari-pasu in all respects with the existing issued and subscribed equity shares of the Company including rights towards dividend.

Note 3A: Loan give to subsidiary is accounted at fair value and the difference between the fair value and transaction price is recognised as deemed investment as per Ind AS 109. Such investments will be derecognised on disposal of control in the subsidiary

Note 3B: Represents the increase in investment value on account of stock options of the Company granted to employees of the subsidiary company. The cost has been debited to Investment in Subsidiary in accordance with IND AS 102, Share-based Payment.

Note 4: The Board of Directors in its meeting held on 29 October 2024 has approved the acquisition of Minakshi Agro Industries Limited Liability Partnership (“MAILLP”), Maharashtra for an aggregate consideration of ' 7,200.00 lakhs. Subsequently, by virtue of the “Deed of Retirement Cum Admission of Limited Liability Partnership” dated 10 December 2024, the Company has completed the acquisition of controlling stake in MAILLP. Further, the Board of Directors in the said meeting dated has approved additional capital infusion for the purpose of expansion in said LLP.

Note 5: On 28 February 2025, the Company entered into a definitive Share Subscription Agreement (“SSA”) and subscribed to two lakhs equity shares, constituting an 80% stake in ABD Maestro Private Limited. Following this SSA, ABD Maestro Private Limited became a subsidiary of the Company. As per the SSA, the Company committed to invest a total Subscription amount of ' 7,000.00 lakhs in one or more tranches, either by itself or through its nominees. Pursuant to SSA, Company has signed the Trademark License Agreement with ABD Maestro Private Limited, where Company has licensed to use the trademarks of certain premium brands, along with all their variants to the ABD Maestro Private Limited which will be effective post the receipt of all statutory approvals.

Note 6: The Board of Directors, at its meeting held on 10 June 2025, approved and completed the acquisition of 100% of the paid-up share capital of UTO Asia Pte. Ltd., a company incorporated under the laws of Singapore (“UTO Asia”), pursuant to the execution of binding transaction documents, including the Share Purchase Agreement. The transaction was concluded for an aggregate consideration of EUR 1,225,000 (Euros one million two hundred and twenty-five thousand only) excluding stamp duty and applicable levies.

Note 7: The Management Committee of the Board of Directors of the Company at its Meeting held on 02 March 2026, has approved to enter into Shareholders’ Agreement and Share Purchase Agreement with the existing Shareholders of Kion Blenders Industries Private Limited (“KION’), to acquire upto 50% of paid-up Share Capital of KION from its existing Shareholder at an investment of ' 0.50 lakhs. Further, in terms of Shareholders’ Agreement, the transaction was concluded, and KION has become a Subsidiary of the Company w.e.f. 02 March 2026.

Note 8: The Board of Directors of the Holding Company in its meeting held on 4 November 2025 has considered and approved a Scheme of Amalgamation (the “Scheme”) of Deccan Star Distilleries India Private Limited (the “Transferor Company 1” or “DDPL”) and Sarthak Blenders & Bottlers Private Limited (the “Transferor Company 2” or “SBBPL”) with Allied Blenders and Distillers Limited (the “Transferee Company” or “ABDL”)

pursuant to Section 230 to 232 and other applicable provisions of the Act. The said scheme is subject to regulatory and other approvals.

#Amount less than ' 500

(d) Rights, preferences and restrictions attached to each class of shares:

The Company has only one class of equity shares having a par value of ' 2 per share. Each holder of equity shares is entitled to one vote per share. The dividend proposed, if any, by the Board of directors is subject to the approval of the shareholders at the ensuing Annual General Meeting, except in the case of interim dividend.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of fully paid-up equity shares held by the shareholders.

(e) The Company has not issued any equity shares as fully paid-up for consideration other than cash during the period of five years immediately preceding the reporting date 31 March 2026

(f) For number of stock options against which equity shares to be issued by the Company upon vesting and exercise of those stock options and rights by the employees under Employee Stock Option Plan. (Refer note 47)

(g) During the year ended 31 March 2019, equity shares of face value ' 10 each were sub divided into 5 shares of ' 2 each.

(h) There are no bonus shares issued, or shares bought back during the period of five years immediately preceding the reporting date i.e. 31 March 2026.

Material accounting policy information and other explanatory information to the standalone financial statements

for the year ended 31 March 2026 (' in lakhs, except for share data and, if otherwise stated)

Nature and purpose of reserves

(i) Capital reserve

Capital reserve represents capital surplus. The reserve is not for any specific purpose but the utilisation will be in accordance with provisions of Companies Act, 2013.

(ii) Securities premium

Securities premium represents the premium received on the issue of shares. The reserve is to be utilised in accordance with the provisions of Companies Act, 2013.

(iii) General reserve

General reserve is created by way of transfer of profits from retained earnings for appropriation purpose. This reserve is a distributable reserve.

(iv) Capital redemption reserve

The reserve is created by way of transfer of profits from general reserve on account of redemption of non-cumulative convertible preference shares. This reserve will be utilised as per the provision of Companies Act, 2013.

(v) Share options outstanding account

This represents fair value of the stock options granted to eligible employees of the Company. The reserve will be utilised on exercise of the options.

(vi) Surplus in the statement of profit and loss

Surplus in the statement of profit and loss pertain to the accumulated earnings made by the Company over the years.

Nature of securities and terms of repayment

a) The vehicle loans from banks and others are secured against specific vehicles. The loans are repayable in monthly instalments ranging 31 March 2026: ' 2.37 lakhs to ' 8.33 lakhs (31 March 2025: ' 2.37 lakhs to ' 8.33 lakhs ).The rate of interest on these loans 31 March 2026 : 8.80% p.a.(31 March 2025 : 8.80% p.a).

(A) Supplier financing arrangement

Some of our suppliers elect to discount certain receivables from the Company with financial institutions. In some instances, the Company provides suppliers and/or banks with visibility of invoices approved for payment, which helps them receive cash from the bank before the invoice due date, if they choose to do so. Payment dates and terms for the Company do not vary based on whether the supplier chooses to factor their receivable. If a receivable is purchased by a third-party bank, that third-party bank does not benefit from additional security when compared to the security originally enjoyed by the supplier. The Company evaluates these arrangements to assess if the payable holds the characteristics of a trade payable or should be classified as a financial liability.

43. Fair value measurements

Fair value intsruments by category and heirarchy

The fair values of financial assets and liabilities are included at the amount at which the instrument could be exchanged in

a current transaction between willing parties, other than in a forced or liquidation sale.

The following methods and assumptions were used to estimate the fair values:

1. Fair value of cash and term deposits, trade and other short term receivables, trade payables, other current liabilities, short term loans from banks and other financial institutions approximate their carrying amounts largely due to short term maturities of these instruments. The fair value of lease liability is not required to be disclosed.

2. Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual credit worthines of the counter party. Based on this evaluation, allowances are taken to acount for expected losses of these receivables. Accordingly, fair value of such instruments is not materially different from their carrying amounts.

The fair values for loans and security deposits were calculated based on cash flows discounted using a curent lending rate.

They are classified as level 3 fair values in fair value heirarchy due to the inclusion of unobservable inputs including counter

party credit risk.

The fair values of non-current borrowings are based on discounted cashflows using a current borrowing rate. They are

classified as level 3 fair values in the fair value heirarchy due to the use of unobsevable inputs, including own credit risk.

For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to fair value.

The carrying amounts of trade receivables, cash and cash equivalents, bank balances other than cash and cash equivalents, loans, other current financial assets, current borrowings, trade payables and other current financial liabilities are considered to be approximately equal to the fair value.

44. Financial risk management

The Company is exposed primarily to fluctuations in foreign exchange, interest rate, credit quality and liquidity management which may adversely impact the fair value of its financial assets and liabilities. The Company has a risk management policy which covers the risk associated with its financial assets and liabilities. The risk management policy is approved by the Board of Directors. The focus is to assess the unpredictability of the financial environment and to mitigate potential adverse effect on the financial performance of the Company.

The Company’s principal financial liabilities comprises of borrowings, lease liabilities, trade payables and other financial liabilities. The Company’s principal financial assets include loans, trade receivables, cash and bank balances , other bank balances and other financial assets that derive directly from its operations.

A. Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, financial assets. Management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. Credit evaluations are performed on all customers requiring credit over a certain amount.

a: Trade receivables (net of loss allowance)

Trade receivables are unsecured and are derived from revenue earned from two main classes of trade receivables i.e. receivables from sales to government corporations and receivables from sales to private parties. A substantial portion of the Company’s trade receivables are from government corporation customers having strong credit worthiness. Further, Company’s historical experience of collecting receivables is that credit risk is low. Hence trade receivables are considered to be a single class of financial assets.Further, the Company has taken insurance against some of receivables from sales to private parties. The Company measured the expected credit loss of trade receivables from individual customers based on historical trends, industry practices and the business environment in which the entity operates. Loss rates are based on actual loss experiences and past trends.

b: Other financial assets

Cash balances are maintained with banks having high credit rating. Loans given to related parties and employees are fully recoverable and loans given to others are fully provided. Majority of other security deposits are placed majorly with government agencies. The credit loss recognised is for a specific scenario and is not expected in the future. The Company presumes increase in credit risk when financial assets are past due more than 30 days.

B. Liquidity risk

Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations without incurring unacceptable losses. The Company’s objective is to maintain optimum levels of liquidity and to ensure that funds are available for use as per requirement.

The liquidity risk principally arises from obligations on account of financial liabilities viz. borrowings, lease liabilities, trade payables and other financial liabilities.

The finance department of the Company is responsible for liquidity and funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management. Management monitors the Company’s net liquidity position through trade receivables or through short term borrowings on need basis.

(i) Financing arrangements :

The Company has access to the following undrawn borrowing facilities at the end of reporting period:

(ii) Maturities of financial liabilities :

The table below summarises the maturity profile of the Company’s financial liabilities based on contractual undiscounted payments at each reporting date. Amounts disclosed under note 23 are carrying values based on amortised cost:

C. Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: Foreign currency risk, interest rate risk and price risk. The Company’s exposure to market risk is primarily on account of foreign currency exchange rate risk and interest rate risk.

(i) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The risk primarily relates to fluctuations in receivables, trade payables, borrowings and other payables denominated in USD, GBP, SGD, EURO and AED against the functional currency INR of the Company.

The Company evaluates exchange rate exposure arising from foreign currency transactions and the Company follows established risk management policies, including the use of derivatives like foreign exchange forward contracts to hedge exposure to foreign currency risk.

(ii) Cash flow and fair value interest rate risk

This refers to risk to company’s cash flow and profits on account of movement in market interest rates. The company’s interest rate risk is mainly due to the borrowings acquired at floating interest rate.

45. Capital management

The Company’s objectives when managing capital are to -

• safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

• maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders.

The Company monitors its capital by using gearing ratio, which is net debt divided by total equity. Net debt includes non-current borrowings (including current maturities) and short term borrowings net of cash and cash equivalents and equity comprises of equity share capital and other equity.

Equity (or equity like) investments by the Company and equity (or equity like) infusion into the Company are not considered for disclosure under balances as these are not considered “outstanding” exposures. Refer note 8A and 21 for the same.

Reference is also invited to footnote 1 below Note 8A for the undertaking received from the promoter chairman confirming willingness to compensate the Company for impairment / shortfall in recoverable value, if any, as detailed in the said note.

Reference is also invited to footnote 5 below note 8A for commitment for further capital infusion in ABD Maestro Private Limited.

The transactions with related parties are made on terms equivalent to those that prevail in arm’s length transactions. Outstanding balances at the year-end are unsecured and interest free. The settlement for these balances occurs through payment. There have been no guarantees provided or received for any related party receivables or payables. For the year ended 31 March 2026, the Company has recorded impairment of receivables/advances relating to amounts owed by related parties of ' Nil (March 31, 2025: 46.04 lakhs). This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

Reference is made to Note 63 regarding the undertaking obtained from the Promoter Chairman in the previous year. Subsequent to the year end, on 14 May 2026, the Board has unanimously approved the waiver of the assurance/commitments provided by the Promoter Chairman in respect of any potential financial impact on the Company arising from the tax liability payable to the Income Tax Department.

Reference is also invited to Note 64 for ‘Share issue expenses’ which have been recovered from the selling shareholders during the year post the completion of IPO, in proportion to their respective shares offered for sale as a part of the IPO.

Reference is also invited to Note 47(e) for provision of post employment medical benefits determined by actuarial valuation to extend the facility of payment for medical insurance premium at actuals in respect of the Non- Executive Chairman and certain specified family members.

(b) Defined benefit plan

Defined benefit obligations - Gratuity (unfunded)

Characteristics of defined benefit plan (Paragraph 139 (a) of Indian Accounting Standard (Ind AS) 19)

The gratuity plan is governed by the Payment of Gratuity Act, 1972 under which an employee who has completed five years of service is entitled to specific benefits. The level of benefits provided depends on the member’s length of service and salary at retirement age. The entity has a defined benefit gratuity plan in India (unfunded). The entity’s defined benefit gratuity plan is a final salary plan for employees. Gratuity is paid from entity as and when it becomes due and is paid as per entity scheme for Gratuity.

*On 21 November 2025, the Government of India has notified four New Labour Codes - the Code on Wages, 2019; Industrial Relations Code, 2020; the Code on Social Security, 2020; and the Occupational Safety, Health and Working Conditions Code, 2020. The Company has assessed impact of these changes, based on best available information, on past service cost relating to gratuity and leave encashment, arising primarily from the revision in the definition of Wages.

Accordingly, Company has obtained the actuary valuation as at 31 March 2026, and have recognised net expense of ' 284.75 lakhs in the standalone financial results as an exceptional item during the year ended 31 March 2026.

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated. There is no change in the method of valuation from the prior period. Sensitivity due to mortality and withdrawals are not material and hence impact of change not calculated.

Risks associated with defined benefit plan

Valuations of defined benefit plan are performed on certain basic set of pre-determined assumptions and other regulatory framework which may vary over time. Thus, the Company is exposed to various risks in providing the above benefit plans which are as follows:

i. Interest Rate risk: The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in the value of the liability (i.e. value of defined benefit obligation)

ii. Salary Escalation Risk: The present value of the defined benefit plan is calculated with the assumption of salary increase rate of plan participants in future. Deviation in the rate of increase of salary in future for plan participants from the rate of increase in salary used to determine the present value of obligation will have a bearing on the plan’s liability.

iii. 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. Mortality rate during employment is calculated considering Indian Assured Lives Mortality 2012-14 (Urban) (Previous year : Indian Assured Lives Mortality 2012-14 (Urban)).

(c) Compensated absences

The leave obligations cover the Company’s liability for sick and privilege leaves. The leave obligation is presented as current, since the Company does not have an unconditional right to defer settlement for any of these obligations. However, based on past experience, the Company does not expect all employees to take the full amount of accrued leave or require payment within the next 12 months.

(f) Employee Stock Option Plan

The Nomination and Remuneration Committee (NRC) of the Board of Directors of the Company, at its Meeting held on 23 January 2026, has granted 3,200,000 Stock Options (including 675,000 options to employees of subsidiary) under the ABD Employee Stock Option Scheme to the eligible Employees with vesting period over 4 years from the date of the grant. The employees have the options to exercise their right within a period of 4 years from the date of vesting. The compensation cost of stock options granted to employees is accounted by the Company using the fair value method. Options granted under the scheme comprise both performance-based and time-based vesting conditions. Performance-based options vest subject to the achievement of specified performance conditions as determined by the NRC, while time-based options vest upon completion of the requisite service (vesting period) in accordance with the terms of the scheme. The fair value of the options and inputs used in the measurement of the grant date fair values of the equity-settled share based payments are as follow:-

In respect of Options granted under the Employee Stock Options Plan, in accordance with the guidelines issued by SEBI, the accounting value of the options is accounted as deferred employee compensation, which is amortized on a straight line basis over the period between the date of grant of options and eligible dates for conversion into equity shares.

The measure of volatility used is the annualized standard deviation of the continuously compounded rates of return of stock over the expected lives of different vests, prior to grant date. Volatility has been calculated based on the daily closing market price of the Company’s stock on NSE over these years.

a. Contingent liability relating to determination of provident fund liability, based on 28 February 2019 Supreme Court judgement, is not determinable at present, due to uncertainty on the period of impact of the judgement in absence of further clarification relating to applicability. The Company will continue to assess any further developments in this matter for their implications on the Company financial statements, if any, which, based on the number of employees, is not expected to be significant.

b. The Company has received a claim on 11 December 2023, amounting to ' 4,210.66 lakhs from one of its institutional customer Canteen Stores Department (CSD), which pertains to a historically settled issue regarding differential trade terms for sales made during the period from 1 March 2012 to 31 October 2017, which was disclosed in the annual financial statements for the financial years ended 31 March 2020, 31 March 2021 and 31 March 2022. The Company vide its letter dated 13 June 2024 to the customer has rejected the claim and invoked arbitration disputing the arbitrary claim of the customer. Management assessment supported by external legal opinion is that the Company has a good case on merits and the probability of the claim fructifying into a liability is remote. Accordingly, the management has determined that the receivable from the customer, amounting to ' 3,398.72 lakhs (net of adjustments) as on 31 March 2026, is good and recoverable. The Company has filed a petition on 08 November 2024 under Section 11 of Arbitration and Conciliation Act, 1996 before the Honible Bombay High Court seeking appointment of Sole Arbitrator and the matter is sub judice. Subsequently, the Sole Arbitrator has been appointed and the Statement of Claims has been filed before the Arbitrator on 12th March 2026. The next date of proceeding in the Arbitration matter is scheduled on 12th June 2026.

49. Revenue from contracts with customers

The Company determines revenue recognition through the following steps:

1. Identification of the contract, or contracts, with a customer.

2. Identification of the performance obligations in the contract.

3. Determination of the transaction price.

4. Allocation of the transaction price to the performance obligations in the contract.

5. Recognition of revenue when, or as, a performance obligation is satisfied.

I n all cases, the total transaction price for a contract is allocated amongst the various performance obligations based on their relative standalone selling prices. The transaction price for a contract excludes any amounts collected on behalf of third parties.

At contract inception, the Company assesses the goods and services promised in the contracts with customers and identifies a performance obligation for each promise to transfer to the customer a good or service (or bundle of goods or services) that is distinct. To identify the performance obligations, the Company considers all of the goods and services promised in the contract regardless of whether they are explicitly stated or are implied by customary business practices.

The majority of customer contracts that the Company enters into consist of a single performance obligation for the delivery of Indian made foreign liquor. The Company recognizes revenue from product sales when control of the product transfers, generally upon shipment or delivery to the customer, i.e., at a point in time. The Company records product sales net of estimated incentives/discounts, returns, and other related charges. These are generally accounted for as variable consideration estimated in the same period the related sales occur. The methodology and assumptions used to estimate rebates and returns are monitored and adjusted regularly in the light of contractual and legal obligations, historical trends, past experience and projected market conditions. The payment terms are generally less than a year. The Company does not have any remaining performance obligation as contracts entered for sale of goods are for a shorter duration.

51. Segment reporting

(a) Business segment

The Company is engaged in the business of manufacture, purchase and sale of alcoholic beverages. Operating segment are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (CODM). The CODM regularly monitors and reviews the operating result of the whole Company as one segment of “Alcoholic beverages/liquids”. Thus, as defined in Ind AS 108 “Operating Segments”, the Company’s entire business falls under this one operational segment. The Company has not presented any other significant information to the CODM.

(b) Entity wide disclosures

Revenue of ' 123,094.96 lakhs and ' 105,638.51 lakhs is derived from the two external customer A and customer B respectively (previous year ' 136,417.40 lakhs and ' 86,549.84 lakhs is derived from the two external customer A and customer B respectively) that individually accounted for more than 10% of the total revenue.

52. CSR Expenditure during the year:

As per the Section 135 of the Companies Act, 2013 every year the Company is required to spend at least 2% of its average net profit made during the immediately 3 preceding financial years on the Corporate Social Responsibility (CSR) activities. Following is the information regarding projects undertaken and expenses incurred on CSR activities.

As per the provisions of Section 135 of the Companies Act 2013, any unspent amount towards Corporate Social Responsibility (CSR) should be transferred to a Special account in relation to the ongoing projects within 30 days from the expiry of the financial year and the same has been duely transferred to the Special account within 30 days from the year end i.e. on 30 April 2025.

53. The Government of Bihar by its notification dated 5 April 2016 imposed a ban on trade and consumption of Indian Made Foreign Liquor and Foreign Liquor in the state of Bihar. The Company had received a letter dated 16 August 2017 from the Government of Bihar, stating that it is not liable to refund the aforesaid statutory duties under the Bihar Prohibition and Excise Act, 2016.

On 17 October 2017, the Company filed a writ petition before the Hon’ble High Court of Patna seeking refund of the aforesaid statutory duties (including statutory duties paid by the Company’s tie-up manufacturers) i.e. VAT, excise duty, license fee, bottling fee etc., paid to the Government of Bihar of ' 3,124 lakhs in respect of billed stocks destroyed/ returned by Bihar State Beverages Corporation Limited (“BSBCL”). Out of the above VAT and Excise department has processed ' 1,062 lakhs till 31 March 2019.

During the year ended 31 March 2022, the Company has received ' 239.26 lakhs out of the recoverable balance of ' 2,334.56 lakhs as on 31 March 2021.

The Balance recoverable of ' 2,095.30 lakhs as at 31 March 2026 is considered good and receivable based on the favourable Order issued by the Hon’ble High Court of Patna dated 18 May 2017 and dated 30 April 2019. The same is disclosed under Note 10 “Due from tie-up units”.

The Hon’ble High Court of Patna has passed the order dated 24 November 2023 in favour of the Company for refund of Excise Duty Refund. The impugned order passed by the Excise Commissioner, Bihar and the Assistant Commissioner, Excise, Patna has been set aside. However, Excise Department has filed an appeal before the Hon’ble Supreme Court against the order passed by the Hon’ble High Court of Patna and stay of the judgment of the High Court has been granted by the Hon’ble Supreme Court on 08 July 2024 and the matter in The Supreme Court is not yet listed and hence status quo.

Consequent to the above claim by the Company, BSBCL has raised a demand for demurrage charges of ' 1,111.00 lakhs on account of IMFL being kept in its godown for the period 2016-17 & 2017-18. In the demurrage charge matter, the writ petition was filed by the Company and the impugned demands have been set aside. The matter has been remanded to the MD, BSBCL to furnish detailed claim to the petitioners, whereupon the Company was required to submit the detailed response. The matter would be finally adjudicated by the MD, BSBCL within 6 months. Despite a detailed reply from the Company, the BSBCL rejected the show case reply filled by the Company and held them liable for the charges. Company challenged this order, and the Patna High Court has stayed the impugned order passed by BSBCL.

54. Leases

Company as lessee

The Company’s leased assets primarily consist of leases for land, building and machinery. Leases of land, building and machinery generally have lease term between 10 years to 95 years, 2 to 5 years and 2 to 10 years respectively. The leases includes non-cancellable periods and renewable option at the discretion of lessee which has been taken into consideration for determination of lease term.

62. ABD Foundation was incorporated on 4 September 2020 as a Section 8 private company limited by guarantee. The Company was subscriber to the memorandum of association of ABD Foundation which was wholly guaranteed by the Company. ABD Foundation was formed to carry out CSR activities on behalf of the Company such as eradicate hunger, poverty and malnutrition, promoting preventive health care and sanitation and making available safe drinking water, promoting education, including special education and employment enhancing vocational skills, etc. As per Ind AS 110, ABD Foundation is controlled by the Company and hence the activities/ transactions of ABD Foundation has been considered/ included in the Standalone Financial Statements of the Company. During the year, the Company has given amount of ' 0.1 Lakhs (31 March 2025 ' Nil) and total outstanding as at the balance sheet date is ' 0.62 lakhs (31 March 2025'0.52 lakhs)

63. The Income Tax Department conducted a search operation under Section 132 of the Income-tax Act, 1961 between 11 December 2023 and 17 December 2023 at certain premises of the Company, its promoters, officials, and group entities. Pursuant to this, assessment orders were issued for Assessment Years 2014-15 to 2024-25, raising an aggregate demand of ' 35,231 lakhs and interest of ' 24,914 lakhs. The Company has filed appeals against these orders. By letter dated 29 April 2025, the Department granted a stay on 90% of the demand, subject to payment of the balance in ten instalments. Subsequently, through an order under Section 250 of the Income-tax Act, 1961 dated 30 January 2026, the demand and related interest were revised to ' 2,607.53 lakhs and ' 1,937.71 lakhs, respectively. Substantial relief was granted to the Company in respect of quantum additions, based on preponderance of probabilities. The Department has dropped all penalty proceedings under Section 271(1)(c) of the Income-tax Act, 1961 as per the order giving effect dated 23 April 2026. The balance amount of refund (including interest as on the date of refund) has been subsequently received by the Company, except for ' 114.90 lakhs which remains outstanding as of the date of signing the financial statements. While the Management believes that there are reasonable grounds to succeed in legal proceedings and is currently evaluating further legal remedies including consideration of costs involved for prolonged litigations, however, given that the time limit to file appeal against the aforesaid order has lapsed, the Company has recognised a tax expense (including the interest) for earlier years of ' 4,545.24 lakhs in its financial results for the quarter and year ended 31 March 2026. Further, the Board, has waived the obligation of the Promoter Chairman under his undertaking dated 28 March 2025. In that undertaking, the Promoter Chairman had assured that any ultimate financial impact on the Company arising from the aforesaid tax liability would be personally funded by him through permissible instruments, thereby ensuring no potential impact on the Company’s financials. This waiver was unanimously approved at the Board meeting held on 14 May 2026.

64. (a) The Company had completed its Initial Public Offer (IPO) of 53,390,079 equity shares of face value of ' 2 each at an

issue price of ' 281 per share comprising fresh issue of 35,596,486 equity shares and offer for sale of 17,793,593 equity shares by selling shareholders, resulting in equity shares of the Company being listed on the National Stock Exchange of India Limited (NSE) and BSE Limited (BSE) on 02 July 2024. The Equity shares were allotted to eligible shareholders vide board resolution dated 28 June 2024. The disclosures relating to ‘equity share capital’ and the ‘earnings per equity share’ have been accordingly updated based on the aforesaid date of allotment. The said IPO funds have been utilised fully in March 2025.

(b) IPO expenses incurred by the Company in connection with public offer of equity shares. In accordance with the Act and also as per the offer agreement entered between the Company and the selling shareholders, the selling shareholders shall reimburse the share issue expenses in proportion to the respective shares offered for sale. During the previous year, the Company had completed its Initial Public Offer (‘IPO’) and equity shares have been listed on National stock exchange and BSE Limited, therefore the Company’s share of expenses have been adjusted against securities premium under Section 52 of the Act and share issue expenses in proportion to the shares offered for sale through IPO have been recovered from the selling shareholder.”

65. The Ministry of Corporate Affairs (MCA) has prescribed a 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 enabled throughout the year at the application level. The software is operated by a third-party software service provider and in the absence of any information on the existence of audit trail feature in the Independent Service Auditor’s Assurance Report on the Description of the Service Organization’s System and the Suitability of the Design and Operating Effectiveness of Controls’ (‘Type 2 report’ issued in accordance with ISAE 3402, Assurance Reports on Controls at a Service Organization), we are unable to assess whether the audit trail feature was enabled and operated throughout the year at the database level to log any direct data changes, used for maintenance of all accounting records by the Company. Further audit logs at the database level have not been retained as per statutory requirements for record retention. Based on management’s assessment, this does not pose any impact, as controls at the application layer are operating effectively

66. The figures for the previous year have been regrouped/reclassified wherever necessary to make them comparable. The impact of such reclassification/ regrouping is not material to the standalone financial statements.

67. Other Statutory Information

a The title deeds of all the immovable properties held by the Company (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) are held in the name of the Company.

b The Company has not revalued its Property, Plant and Equipment or intangible assets during the year.

c The Company do not have any Benami property, where any proceeding has been initiated or pending against the

Company for holding any Benami property.

d The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period

e The Company have not traded or invested in Crypto currency or Virtual currency during the financial year.

f The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign

entities (Intermediaries) with the understanding that the Intermediary shall:

(i) 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

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

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

(i) 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

(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

h The Company have not 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).

i The Company has complied with the provision related to number of layers as prescribed under section 2(87) of the Companies Act read with Companies (Restriction on number of Layers) Rules, 2017.

j The Company is not a declared willful defaulter by any bank or financial institution or other lender.

68. The Company evaluated all events or transactions that occurred after 31 March 2026 up through 14 May 2026, the date the standalone financial statements were approved for issue by the Board of Directors. Based on this evaluation, the Company is not aware of any events or transactions that would require recognition or disclosure in the standalone financial statements.

The accompanying notes form an integral part of the standalone financial statements

This is a material accounting policy and other explanatory information referred to in our report of even date.