3.10 Provisions, Contingent Liabilities, Contingent
assets and Commitments:

Provisions are recognised when the Company has a
present obligation (legal or constructive) as a result of
a past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle
the obligation and a reliable estimate can be made of
the amount of the obligation. If the effect of the time
value of money is material, provisions are discounted
using equivalent period government securities interest
rate. Unwinding of the discount is recognised in

the statement of profit and Loss as a finance cost.
Provisions are reviewed at each balance sheet date
and are adjusted to reflect the current best estimate.

Contingent liabilities are disclosed when there
is a possible obligation arising from past events,
the existence of which will be confirmed only by
the occurrence or non-occurrence of one or more
uncertain future events not wholly within the control
of the Company or a present obligation that arises
from past events where it is either not probable that
an outflow of resources will be required to settle or
a reliable estimate of the amount cannot be made.
Information on contingent liability is disclosed in the
Notes to the financial statements. Contingent assets
are not recognised. However, when the realisation of
income is virtually certain, then the related asset is no
longer a contingent asset, but it is recognised as an
asset.

3.11 Revenue recognition and other income:Sale of goods and Services:

The Company derives revenues primarily from sale of
products comprising Consumer ware Products (CP).

Revenue from contracts with customers is recognised
when control of the goods or services are transferred
to the customer at an amount that reflects the
consideration entitled in exchange for those goods
or services. Generally, control is transferred upon
shipment of goods to the customer or when the goods
is made available to the customer, provided transfer
of title to the customer occurs and the Company has
not retained any significant risks of ownership or future
obligations with respect to the goods shipped.

Revenue from rendering of services is recognised over
the time by measuring the progress towards complete
satisfaction of performance obligations at the reporting
period.

Revenue is measured at the amount of consideration
which the Company expects to be entitled to in
exchange for transferring distinct goods or services
to a customer as specified in the contract, excluding
amounts collected on behalf of third parties (for
example taxes and duties collected on behalf of the
government). Consideration is generally due upon

satisfaction of performance obligations and a receivable
is recognized when it becomes unconditional.

The Company does not have any contracts where the
period between the transfer of the promised goods or
services to the customer and payment by the customer
exceeds one year. As a consequence, it does not
adjust any of the transaction prices for the time value
of money.

Revenue is measured based on the transaction
price, which is the consideration, adjusted for volume
discounts, scheme discount and price concessions ,
if any, as specified in the contract with the customer.
Revenue also excludes taxes collected from
customers.

Incentives on exports related to operations are
recognised in the statement of profit and loss after due
consideration of certainty of utilization/receipt of such
incentives.

Contract balances:Trade receivables:

A receivable represents the Company's right to an
amount of consideration that is unconditional.

Contract liabilities:

A contract liability is the obligation to transfer goods
or services to a customer for which the Company has
received consideration (or an amount of consideration
is due) from the customer. If a customer pays
consideration before the Company transfers goods
or services to the customer, a contract liability is
recognised when the payment is made. Contract
liabilities are recognised as revenue when the
Company performs under the contract.

Interest Income:

Interest income from a financial asset is recognised
when it is probable that the economic benefits will flow
to the Company and the amount of income can be
measured reliably. Interest income is accrued on a time
basis, by reference to the principal outstanding and at
the effective interest rate applicable, which is the rate
that exactly discounts estimated future cash receipts
through the expected life of the financial asset to that
asset's net carrying amount on initial recognition.

Dividend Income:

Dividend Income is recognised when the right to
receive the payment is established.

Rental income:

Rental income arising from operating leases is
accounted for on a straight-line basis over the lease
terms and is included as other income in the statement
of profit or loss.

3.12 Foreign Currency:

Transactions in foreign currencies are recorded at the
exchange rate prevailing on the date of transaction.
Monetary assets and liabilities denominated in foreign
currencies are translated at the functional currency
closing rates of exchange at the reporting date.

Exchange differences arising on settlement or
translation of monetary items are recognised in
statement of profit and loss.

In case of an asset, expense or income where a
non-monetary advance is paid/received, the date
of transaction is the date on which the advance was
initially recognized. If there were multiple payments or
receipts in advance, multiple dates of transactions are
determined for each payment or receipt of advance
consideration.

3.13 Employee Benefits:

Short term employee benefits are recognized as an
expense in the statement of profit and loss of the year
in which the related services are rendered.

Leave encashment is accounted as Short-term
employee benefits and is determined based on
projected unit credit method, on the basis of actuarial
valuations carried out by third party actuaries at each
Balance Sheet date.

Contribution to Provident Fund, a defined contribution
plan, is made in accordance with the statute, and
is recognised as an expense in the year in which
employees have rendered services.

Contribution to Superannuation fund, a defined
contribution plan, is made in accordance with the
Company's policy, and is recognised as an expense in
the year in which employees have rendered services.

The cost of providing gratuity, a defined benefit plans,
is determined using the Projected Unit Credit Method,
on the basis of actuarial valuations carried out by third
party actuaries at each Balance Sheet date. Actuarial
gains and losses arising from experience adjustments
and changes in actuarial assumptions are charged or
credited to other comprehensive income in the period
in which they arise. Other costs are accounted in
statement of profit and loss.

Remeasurements of defined benefit plan in respect
of post employment and other long term benefits
are charged to the other comprehensive income
in the year in which they occur. Remeasurements
are not reclassified to statement of profit and loss in
subsequent periods.

3.14 Share-based payments:

The cost of equity-settled transactions with employees
is measured at fair value at the date at which they
are granted. The fair value of share awards are
determined with the assistance of an external valuer
and the fair value at the grant date is expensed on a
proportionate basis over the vesting period based on
the Company's estimate of shares that will eventually
vest. The estimate of the number of stock options likely
to vest is reviewed at each balance sheet date up to
the vesting date at which point the estimate is adjusted
to reflect the current expectations.

3.15 Taxes on Income:

Income tax expense represents the sum of current tax
(including income tax for earlier years) and deferred
tax. Tax is recognised in the statement of profit and
loss, except to the extent that it relates to items
recognised directly in equity or other comprehensive
income, in such cases the tax is also recognised
directly in equity or in other comprehensive income.
Any subsequent change in direct tax on items initially
recognised in equity or other comprehensive income
is also recognised in equity or other comprehensive
income.

Current tax provision is computed for Income calculated
after considering allowances and exemptions under
the provisions of the applicable Income Tax Laws.

Current tax assets and current tax liabilities are off set,
and presented as net.

Deferred tax is recognised on differences between
the carrying amounts of assets and liabilities in the
Balance sheet and the corresponding tax bases
used in the computation of taxable income. Deferred
tax liabilities are generally recognised for all taxable
temporary differences, and deferred tax assets are
generally recognised for all deductible temporary
differences, carry forward tax losses, unutilised tax
credits and allowances to the extent that it is probable
that future taxable profits will be available against which
those deductible temporary differences, carry forward
tax losses, unutilised tax credits and allowances can
be utilised. Deferred tax liabilities and assets are
measured at the tax rates that are expected to apply
in the period in which the liability is settled or the asset
realised, based on tax rates that have been enacted
or substantively enacted by the end of the reporting
period. The carrying amount of Deferred tax liabilities
and assets are reviewed at the end of each reporting
period.

3.16 Borrowing Costs:

Borrowing costs specifically relating to the acquisition
or construction of qualifying assets that necessarily
takes a substantial period of time to get ready for
its intended use are capitalized (net of income on
temporarily deployment of funds) as part of the cost
of such assets. Borrowing costs consist of interest and
other costs that the Company incurs in connection with
the borrowing of funds. For general borrowing used
for the purpose of obtaining a qualifying asset, the
amount of borrowing costs eligible for capitalization
is determined by applying a capitalization rate to
the expenditures on that asset. The capitalization
rate is the weighted average of the borrowing costs
applicable to the borrowings of the Company that are
outstanding during the period, other than borrowings
made specifically for the purpose of obtaining a
qualifying asset. The amount of borrowing costs
capitalized during a period does not exceed the
amount of borrowing cost incurred during that period.
All other borrowing costs are expensed in the period in
which they occur.

3.17 Current and non-current classification:

The Company presents assets and liabilities in
statement of financial position based on current/non-
current classification.

The Company has presented non-current assets and
current assets before equity, non-current liabilities
and current liabilities in accordance with Schedule III,
Division II of Companies Act, 2013 notified by MCA.

An asset is classified as current when it is:

a) Expected to be realised or intended to be sold or
consumed in normal operating cycle,

b) Held primarily for the purpose of trading,

c) Expected to be realised within twelve months
after the reporting period, or

d) Cash or cash equivalent unless restricted from
being exchanged or used to settle a liability for at
least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is classified as current when it is:

a) Expected to be settled in normal operating cycle,

b) Held primarily for the purpose of trading,

c) Due to be settled within twelve months after the
reporting period, or

d) There is no unconditional right to defer the
settlement of the liability for at least twelve
months after the reporting period.

All other liabilities are classified as non-current.

The operating cycle is the time between the acquisition
of assets for processing and their realisation in cash
or cash equivalents. Deferred tax assets / liabilities
are classified as non-current assets / liabilities. The
Company has identified twelve months as its normal
operating cycle.

3.18 Fair value measurement:

The Company measures financial instruments at fair
value at each balance sheet date.

Fair value is the price that would be received to sell
an asset or paid to transfer a liability in an orderly
transaction between market participants at the

measurement date. The fair value measurement is
based on the presumption that the transaction to sell
the asset or transfer the liability takes place either:

a) In the principal market for the asset or liability, or

b) In the absence of a principal market, in the most
advantageous market for the asset or liability

A fair value measurement of a non-financial asset
takes into account a market participant's ability to
generate economic benefits by using the asset in its
highest and best use or by selling it to another market
participant that would use the asset in its highest and
best use.

The Company uses valuation techniques that are
appropriate in the circumstances and for which
sufficient data are available to measure fair value,
maximising the use of relevant observable inputs and
minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured
or disclosed in the financial statements are categorised
within the fair value hierarchy.

3.19 Off-setting financial Instrument:

Financial assets and liabilities are offset and the net
amount is reported in the balance sheet where there
is a legally enforceable rights to offset the recognised
amounts and there is an intention to settle on a net
basis or realise the asset and settle the liability
simultaneously. The legally enforceable rights must
not be contingent on future events and must be
enforceable in the normal course of business and in
the event of default, insolvency or bankruptcy of the
respective Company or counterparty.

3.20 Recent pronouncements

Ministry of Corporate Affairs (“MCA”) notifies new
standards or amendments to the existing standards
under Companies (Indian Accounting Standards)
Rules as issued from time to time. The Company has
reviewed these amendments and determined that
there is no material impact on the financial statements.

Ind AS 1, Presentation of Financial Statements

The amendment refines the criteria for classifying
liabilities as current or non-current. It clarifies that
a right to defer settlement of a liability for at least

12 months after the reporting period must exist at the
end of the reporting period and have substance. The
amendment also introduces explicit guidance on how
compliance with covenants affects the classification of
liabilities.

The amendments are effective for annual reporting
periods beginning on or after April 01, 2025.

Ind AS 7, Statement of Cash Flows and Ind AS 107,
Financial Instruments

The amendment to Ind AS 7 requires entities to disclose
qualitative and quantitative information regarding the
characteristics, carrying amounts, and payment term
ranges of supplier finance arrangements. Concurrently,
Ind AS 107 has been amended to incorporate supplier
finance arrangements as a key factor when evaluating
and disclosing liquidity risk concentrations.

The amendments are effective for annual reporting
periods beginning on or after April 01, 2025.

Ind AS 21, The Effects of Changes in Foreign
Exchange Rates

The MCA notified amendments to Ind AS 21 to specify
how an entity should assess whether a currency is
exchangeable and how it should determine a spot
exchange rate when exchangeability is lacking. The
amendments require disclosures that enable users
of financial statements to understand how a lack of
currency exchangeability affects, or is expected to
affect, the entity's financial performance, financial
position, and cash flows.

The amendments are effective for annual reporting
periods beginning on or after April 01, 2025.

NOTE 4 SIGNIFICANT ACCOUNTING JUDGEMENTS,
ESTIMATES AND ASSUMPTIONS

The preparation of Financial Statements requires
management to make judgements, estimates and
assumptions that affect the reported amounts of
revenues, expenses, assets, liabilities, the accompanying
disclosures and the disclosure of contingent liabilities.
Uncertainty about these assumptions and estimates could
result in outcomes that require a material adjustment
to the carrying amount of assets or liabilities affected
in future periods. The key assumptions concerning the

future and other key sources of estimation uncertainty at
the reporting date, that have a significant risk of causing
a material adjustment to the carrying amounts of assets
and liabilities within the next financial year, are described
below. The Company used its assumptions and estimates
on parameters available when the financial statements
were prepared. However, existing circumstances and
assumptions about future developments may change
due to market changes or circumstances arising that are
beyond the control of the Company. Such changes are
reflected in the assumptions when they occur.

4.1 Property, Plant and Equipment, Investment
Properties and Other Intangible Assets:

Management reviews the estimated useful lives and
residual values of the assets annually in order to
determine the amount of depreciation to be recorded
during any reporting period. The useful lives and
residual values as per schedule II of the Companies
Act, 2013 or are based on the Company's historical
experience with similar assets and taking into account
anticipated technological changes, whichever is more
appropriate.

4.2 Income Tax:

Company reviews at each balance sheet date the
carrying amount of deferred tax assets. The factors
used in estimates may differ from actual outcome
which could lead to an adjustment to the amounts
reported in the financial statements.

4.3 Contingencies:

Management has estimated the possible outflow of
resources at the end of each annual reporting financial
year, if any, in respect of contingencies/claim/litigations
against the Company as it is not possible to predict the
outcome of pending matters with accuracy.

4.4 Impairment of financial assets:

The impairment provisions for financial assets are
based on assumptions about risk of default and
expected cash loss. The Company uses judgement in
making these assumptions and selecting the inputs to
the impairment calculation, based on Company's past
history, existing market conditions as well as forward
looking estimates at the end of each reporting period.

4.5 Impairment of non-financial assets:

The Company assesses at each reporting date whether
there is an indication that an asset may be impaired.
If any indication exists, or when annual impairment
testing for an asset is required, the Company estimates
the asset's recoverable amount. An asset's recoverable
amount is the higher of an asset's or Cash Generating
Units (CGU) fair value less costs of disposal and its
value in use. It is determined for an individual asset,
unless the asset does not generate cash inflows that
are largely independent to those from other assets or
Companys of assets. Where the carrying amount of
an asset or CGU exceeds its recoverable amount, the
asset is considered impaired and is written down to its
recoverable amount.

In assessing value in use, the estimated future cash
flows are discounted to their present value using
a pre-tax discount rate that reflects current market
assessments of the time value of money and the risks
specific to the asset. In determining fair value less
cost of disposal, recent market transactions are taken
into account. If no such transactions can be identified,
an appropriate valuation model is used. These
calculations are corroborated by valuation multiples or
other available fair value indicators.

4.6 Defined benefits plans:

The Cost of the defined benefit plan and other post¬
employment benefits and the present value of such
obligation are determined using actuarial valuations.
An actuarial valuation involves making various
assumptions that may differ from actual developments
in the future. These include the determination of the
discount rate, future salary increases, mortality rates
and attrition rate. Due to the complexities involved
in the valuation and its long-term nature, a defined
benefit obligation is highly sensitive to changes in
these assumptions. All assumptions are reviewed at
each reporting date.

4.7 Revenue Recognition:

The Company's contracts with customers could include
promises to transfer multiple products and services
to a customer. The Company assesses the products
/ services promised in a contract and identify distinct

performance obligations in the contract. Identification
of distinct performance obligation involves judgement
to determine the deliverables and the ability of
the customer to benefit independently from such
deliverables.

Judgement is also required to determine the transaction
price for the contract. The transaction price could be
either a fixed amount of customer consideration or
variable consideration with elements such as volume
discounts, price concessions and incentives. Any
consideration payable to the customer is adjusted
to the transaction price, unless it is a payment for a
distinct product or service from the customer. The
estimated amount of variable consideration is adjusted
in the transaction price only to the extent that it is highly
probable that a significant reversal in the amount of
cumulative revenue recognised will not occur and
is reassessed at the end of each reporting period.
The Company allocates the elements of variable
considerations to all the performance obligations
of the contract unless there is observable evidence
that they pertain to one or more distinct performance
obligations.

4.8 Provisions:

Provisions and liabilities are recognized in the period
when it becomes probable that there will be a future
outflow of funds resulting from past operations or
events and the amount of cash outflow can be reliably
estimated. The timing of recognition and quantification
of the liability require the application of judgement
to existing facts and circumstances, which can be
subject to change. Since the cash outflows can take
place many years in the future, the carrying amounts
of provisions and liabilities are reviewed regularly
and adjusted to take account of changing facts and
circumstances.

4.9 Fair value measurement of financial instruments:

When the fair value of financial assets and financial
liabilities recorded in the balance sheet cannot
be measured based on quoted prices in active
markets, their fair value is measured using valuation
techniques including the Discounted Cash Flow
(DCF) model. The inputs to these models are taken
from observable markets where possible, but where

this is not feasible, a degree of judgement is required
in establishing fair values. Judgements include
considerations of inputs such as liquidity risk, credit
risk and volatility. Changes in assumptions about
these factors could affect the reported fair value of
financial instruments.

4.10 Classification of Leases:

The Company evaluates if an arrangement qualifies
to be a lease as per the requirements of Ind AS 116.
Identification of a lease requires significant judgement.
The Company uses significant judgement in assessing
the lease term (including anticipated renewals) and the
applicable discount rate. The Company determines the
lease term as the non-cancellable period of a lease,
together with both periods covered by an options

to extend the lease if the Company is reasonably
certain to exercise that options; and periods covered
by an option to terminate the lease if the Company
is reasonably certain not to exercise that options. In
assessing whether the Company is reasonably certain
to exercise an option to extend a lease, or not to
exercise an option to terminate a lease, it considers
all relevant facts and circumstances that create an
economic incentive for the Company to exercise the
option to extend the lease, or not to exercise the option
to terminate the lease. The Company revises the lease
term if there is a change in the non-cancellable period
of a lease. The discount rate is generally based on
the incremental borrowing rate specific to the lease
being evaluated or for a portfolio of leases with similar
characteristics.

6.3 The fair values of the properties are ' 695.48 lakhs (Previous Year ' 680.15 lakhs). These valuations are based on
valuations performed by an accredited independent valuer , who is a specialist in valuing these types of properties. The
fair value of the assets is determined using Comparison Method under the Market Approach. The fair value measurement
is categorised in Level 3 fair value hierarchy. For the purpose of the valuation under comparison method, a comparison
is made with similar properties that have recently been sold in the market.

6.4 The fair values of the properties as at March 31, 2026 are performed by an accredited independent registered valuer
as defined under rule 2 of the Companies (Registered Valuers and Valuation) Rules, 2017 who is a specialist in valuing
these types of properties.

6.5 There are no restrictions on the realisability of investment properties of the Company and also there is no contractual
obligations to purchase, construct or develop investment properties or for repairs, maintenance and enhancements.

20.2 During the year, pursuant to exercise of the options under “Borosil Limited Special Purpose Employee Stock Option
Plan 2020” and 'Borosil Limited - Employee Stock Option Scheme 2020', the Company has made allotment of 59,139
Equity Shares (Previous Year 2,23,914 Equity Shares) of the face value of ' 1/- each, which has resulted into increase
of paid up Equity Share Capital by ' 0.59 lakhs (Previous Year ' 2.24 lakhs) and Securities Premium by ' 147.87 lakhs
(Previous Year '507.62 lakhs).

20.3 During the previous year, the Company made Qualified Institutional Placement (QIP), whereby 47,16,981 Equity Shares
of the face value of ' 1/- each were allotted to the Qualified Institutional Buyers at a premium of ' 317.00 per share
aggregating to ' 15,000.00 lakhs for repayment/ prepayment of long-term project loans, working capital loans and
general corporate purposes. The above proceeds have been fully utilized for the above purpose.

The expenses incurred by the Company aggregating to ' 198.14 lakhs (including ' 5.00 lakhs paid to Auditor) (net of tax)
in connection with QIP have been adjusted towards Securities premium.

20.4 Terms/Rights attached to Equity Shares :

The Company has only one class of shares referred to as equity shares having a par value of ' 1/- per share. Holders
of equity shares are entitled to one vote per share. The dividend proposed by the Board of Directors, if any, is subject
to the approval of the shareholders in the annual general meeting, except in case of interim dividend. In the event of
liquidation of the Company, the holders of equity shares will be entitled to receive the remaining assets of the Company,
after distribution of all preferential amounts. The distribution will be in the same proportion as the capital paid-up on the
equity shares held by them bears to the total paid-up equity share capital of the Company.

21.1 Nature and Purpose of Reserve1. Capital Reserve:

Capital reserve was created by way of subsidy received from State Industries Promotion Corporation of Tamilnadu.
The reserve will be utilised in accordance with the provisions of the Companies Act, 2013.

2. Capital Reserve On Scheme of Amalgamation:

Capital Reserve is created on account of Scheme of Amalgamation. The reserve will be utilised in accordance with
the provisions of the Companies Act, 2013.

3. General Reserve:

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

4. Share Based Payment Reserve:

Share based payment reserve is created against 'Borosil Limited - Special Purpose Employee Stock Option Plan
2020' (“ESOP 2020”) and against 'Borosil Limited - Employee Stock Option Scheme 2020' (“NEW ESOS 2020”)
and will be utilised against exercise of the option on issuance of the equity shares of the Company.

5. Securities Premium:

Securities premium is created when shares issued at premium. The reserve will be utilised in accordance with the
provisions of the Companies Act, 2013.

6. Retained Earnings:

Retained earnings represents the accumulated profits / (losses) made by the Company over the years.

7. Other Comprehensive Income (OCI):

Other Comprehensive Income (OCI) includes remeasurements of defined benefit plans.

22.1 Term Loans (including current maturities of long term borrowings shown under current financial liabilities -

Borrowings) (Refer Note 24)

i) Term loan from a bank of ' 2,573.20 lakhs (Previous year ' 3,859.80 lakhs) carries interest at 7.20% p.a. (linked
to Repo rate) and is primarily secured by way of exclusive hypothecation charge on movable fixed assets (Plant &
Machinery) at Jaipur. The said borrowings shall be repaid in 8 equal quarterly instalments of ' 321.65 lakhs.

ii) Term loan from a bank of ' 1,769.79 lakhs (Previous year ' 2,091.57 lakhs) carries interest at 6.52% p.a. (linked to
3M T-bill) and is primarily secured by way of exclusive charge on movable fixed assets financed by the bank. The
said borrowings shall be repaid in 22 equal quarterly instalments of ' 80.44 lakhs.

iii) Term loan from a bank of ' 4,703.00 lakhs (Previous year ' Nil) carries interest at 7.50% p.a. (linked to Repo
rate) and is primarily secured by way of exclusive charge on movable fixed assets financed by the bank. The said
borrowings shall be repaid in 28 equal quarterly instalments of ' 167.96 lakhs.

35.2 Notes related to Corporate Social Responsibility expenditure (CSR):

(a) CSR amount required to be spent as per Section 135 of the Companies Act, 2013 read with Schedule VII thereof by the
Company during the year is ' 179.56 lakhs (Previous Year ' 192.39 lakhs).

(b) Expenditure related to Corporate Social Responsibility is ' 188.59 lakhs (Previous year ' 193.70 lakhs) and ' Nil
(Previous year ' Nil) remained unspent.

Details of expenditure towards CSR given below:-

* During the previous year, The Company has set-off ' 11.00 lakhs (excess spent of FY 2021-22) and carry forward
excess CSR spent of ' 1.31 lakhs and further decided to carry forward excess CSR spent of ' 9.03 lakhs during FY
2025-26 to offset in any of three immediately succeeding financial years and has recognised the same as an asset in
the balance sheet.

NOTE 36: EXCEPTIONAL ITEMS

Effective from November 21, 2025, the Government of India has consolidated 29 existing labour legislations into a united
framework comprising four Labour Codes. On the basis of best available information, the Company has assessed the one
time incremental impact of ' 404.82 lakhs. The Company continues to monitor the finalisation of Central / State Government
Rules and clarifications in relation to newly introduced Labour Code and would provide appropriate accounting effect on the
basis of new developments, if required.

The contribution to provident fund and pension scheme is made to Employees' Provident Fund managed by
Provident Fund Commissioner. Employees' Superannuation Fund is managed by Life Insurance Corporation of
India. The contribution towards ESIC made to Employees' State Insurance Corporation. The contribution towards
LWF is made to Maharashtra Labour welfare Fund and Gujarat Labour welfare Fund. The obligation of the Company
is limited to the amount contributed and it has no further contractual nor any constructive obligation.

(b) Defined Benefit Plan:

The Gratuity benefits of the Company is funded.

The employees' Gratuity Fund is managed by the Life Insurance Corporation of India and Aditya Birla Sun Life
Insurance Company Ltd. The present value of obligation is determined based on actuarial valuation using the
Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee
benefit entitlement and measures each unit separately to build up the final obligation.

39.3 Risk exposuresA. Actuarial Risk:

It is the risk that benefits will cost more than expected. This can arise due to one of the following reasons:
Adverse Salary Growth Experience: Salary hikes that are higher than the assumed salary escalation will result
into an increase in obligation at a rate that is higher than expected.

Variability in mortality rates: If actual mortality rates are higher than assumed mortality rate then the Gratuity
benefits will be paid earlier than expected. Since there is no condition of vesting on the death benefit, the acceleration
of cash flow will lead to an actuarial loss or gain depending on the relative values of the assumed salary growth and
discount rate.

Variability in withdrawal rates: If actual withdrawal rates are higher than assumed withdrawal rate then the
Gratuity benefits will be paid earlier than expected. The impact of this will depend on whether the benefits are
vested as at the resignation date.

B. Investment Risk:

For funded plans that rely on insurers for managing the assets, the value of assets certified by the insurer may not
be the fair value of instruments backing the liability. In such cases, the present value of the assets is independent
of the future discount rate. This can result in wide fluctuations in the net liability or the funded status if there are
significant changes in the discount rate during the inter-valuation period.

C. Liquidity Risk:

Employees with high salaries and long durations or those higher in hierarchy accumulate significant level of benefits.
If some of such employees resign/retire from the Company there can be strain on the cash flows.

D. Market Risk:

Market risk is a collective term for risks that are related to the changes and fluctuations of the financial markets.
One actuarial assumption that has a material effect is the discount rate. The discount rate reflects the time value
of money. An increase in discount rate leads to decrease in Defined Benefit Obligation of the plan benefits & vice
versa. This assumption depends on the yields on the corporate/government bonds and hence the valuation of
liability is exposed to fluctuations in the yields as at the valuation date.

E. Legislative Risk:

Legislative risk is the risk of increase in the plan liabilities or reduction in the plan assets due to change in the
legislation/regulation. The government may amend the Payment of Gratuity Act thus requiring the companies to pay
higher benefits to the employees. This will directly affect the present value of the Defined Benefit Obligation and the
same will have to be recognized immediately in the year when any such amendment is effective.

39.4 Details of Asset-Liability Matching Strategy

Gratuity benefits liabilities of the Company are Funded. There are no minimum funding requirements for a Gratuity
benefits plan in India and there is no compulsion on the part of the Company to fully or partially pre-fund the liabilities
under the Plan. The trustees of the plan have outsourced the investment management of the fund to insurance companies
which are regulated by IRDA. Due to the restrictions in the type of investments that can be held by the fund, it may not
be possible to explicitly follow an asset-liability matching strategy to manage risk actively in a conventional fund.

39.5 The expected payments towards contributions to the defined benefit plan within one year is ' 265.78 lakhs (Previous
year ' 170.34 lakhs).

39.7 The average duration of the defined benefit plan obligation at the end of the reporting period is 11.94 years (Previous
Year 12.16 years).

NOTE 40: SHARE BASED PAYMENTSEmployee Stock Option Schemes of Borosil Limited (BL)

The Company offers equity based award plan to its employees through the Company's stock option plan.

40.1 ‘Borosil Limited - Special Purpose Employee Stock Option Plan 2020' (“ESOP 2020”)

Pursuant to the Composite Scheme of Amalgamation and Arrangement (“the Composite Scheme”) approved by
the Hon'ble National Company Law Tribunal, Mumbai Bench (“NCLT”) on January 15, 2020, Employees of Borosil
Renewables Limited(Company under common control) who were granted options under “Borosil Employee Stock Option
Scheme 2017” (“ESOS 2017”), were issued equal number of options in the Company, irrespective of whether these
options were vested or not under ESOS 2017.

Accordingly, with a view to restore the value of the employee stock options (“Options”) pre and post demerger by
providing fair adjustment in respect of Options granted under ESOS 2017, the Company had adopted and implemented
a new Employee Stock Option Plan namely 'Borosil Limited - Special Purpose Employee Stock Option Plan 2020'
(“ESOP 2020”).

The fair value of options has been determined at the date of grant of the options. This fair value, adjusted by the
Company's estimate of the number of options that will eventually vest, is expensed over the vesting period.

The fair values were calculated using the Black-Scholes Model for tenure based awards. The inputs to the model include
the share price at the date of grant, exercise price, expected life, expected volatility, expected dividends and the risk free
rate of interest. Expected volatility has been calculated using historical return on share price. All options are assumed to
be exercised within six months from the date of respective vesting.

40.2 Borosil Limited Employee Stock Option Scheme 2020 (“NEW ESOS 2020”)

In order to provide equity settled incentive to specific employees of the Company and its Subsidiaries, the Company
has introduced NEW ESOS 2020. The NEW ESOS 2020 includes tenure-based stock options. The specific employees
to whom these Options are granted and their eligibility criteria are determined by the Nomination and Remuneration
Committee.

During the previous year 7,99,500 Options were granted to the eligible employees at an exercise price of '430 per
options. Exercise period is 5 years from the date of vesting of the respective options.

44.2 Fair Valuation techniques used to determine fair value

The Company maintains procedures to value financial assets or financial liabilities using the best and most relevant data

available. The fair values of the financial assets and liabilities are included at the amount that would be received to sell

an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

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

i) Fair value of trade receivable, cash and cash equivalents, other bank balances, trade payables, loans, current
borrowings, deposits and other financial assets and liabilities are approximate at their carrying amounts largely due
to the short-term maturities of these instruments.

ii) The fair values of non-current loans, fixed deposits, security deposits, Non-current Lease Liabilities and Non¬
current Borrowings are approximate at their carrying amount due to interest bearing features of these instruments.

iii) The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data
are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of
unobservable inputs.

iv) Fair values of quoted financial instruments are derived from quoted market prices in active markets.

v) The fair value for level 3 instruments is valued using inputs based on information about market participants
assumptions and other data that are available.

vi) The fair value of the remaining financial instruments is determined using discounted cash flow analysis and/or
direct sales comparison approach.

vii) Equity Investments in subsidiaries are stated at cost.

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by

valuation techniques:

i) Level 1 Quoted prices / published NAV (unadjusted) in active markets for identical assets or liabilities. It includes
fair value of financial instruments traded in active markets and are based on quoted market prices at the balance
sheet date and financial instruments like mutual funds for which net assets value (NAV) is published by mutual fund
operators at the balance sheet date.

ii) Level 2 :- Inputs, other than quoted prices included within level 1, that are observable for the asset or liability, either
directly (that is, as prices) or indirectly (that is, derived from prices). It includes fair value of the financial instruments
that are not traded in an active market (for example, over-the-counter derivatives) is determined by using valuation
techniques. These valuation techniques maximise the use of observable market data where it is available and rely
as little as possible on the Company specific estimates. If all significant inputs required to fair value an instrument
are observable then instrument is included in level 2.

iii) Level 3 :- Inputs for the asset or liability that are not based on observable market data (that is, unobservable
inputs). If one or more of the significant inputs is not based on observable market data, the instrument is included
in level 3.

The Company is exposed to market risk, credit risk and liquidity risk. Risk management is carried out by the Company under
policies approved by the board of directors. This Risk management plan defines how risks associated with the Company will
be identified, analysed, and managed. It outlines how risk management activities will be performed, recorded, and monitored
by the Company. The basic objective of risk management plan is to implement an integrated risk management approach
to ensure all significant areas of risks are identified, understood and effectively managed, to promote a shared vision of
risk management and encourage discussion on risks at all levels of the organization to provide a clear understanding of
risk/benefit trade-offs, to deploy appropriate risk management methodologies and tools for use in identifying, assessing,
managing and reporting on risks, and to determine the appropriate balance between cost and control of risk and deploy
appropriate resources to manage/optimize key risks. Activities are developed to provide feedback to management and other
interested parties (e.g. Audit committee, Board etc.). The results of these activities ensure that risk management plan is
effective in the long term.

45.1 Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market prices. Market prices comprise of three types of risk: foreign currency rate risk, interest rate risk and other price
risks, such as equity price risk and commodity risk.

The sensitivity analysis is given relate to the position as at March 31, 2026 and March 31, 2025.

The sensitivity analysis excludes the impact of movements in market variables on the carrying value of post¬
employment benefit obligations, provisions and on the non-financial assets and liabilities. The sensitivity of the relevant
statement of profit and loss item is the effect of the assumed changes in the respective market risks. The Company's
activities expose it to a variety of financial risks, including the effects of changes in foreign currency exchange rates
and interest rates. This is based on the financial assets and financial liabilities held as at March 31, 2026 and as at
March 31, 2025.

(a) Foreign exchange risk and sensitivity

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in foreign exchange rates. The Company's exposure to the risk of changes in foreign exchange
rates relates primarily to the Company's operating activities. The Company transacts business primarily in USD,
EURO and RMB. The Company has foreign currency trade and other payables, trade receivables and other current
financial assets and liabilities and is therefore, exposed to foreign exchange risk. The Company regularly reviews
and evaluates exchange rate exposure arising from foreign currency transactions.

The following table demonstrates the sensitivity in the USD, EURO and RMB to the Indian Rupee with all other
variables held constant. The impact on the Company's profit before tax due to changes in the fair values of monetary
assets and liabilities is given below:

Credit risk is the risk that a counter party 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, including deposits with banks and other financial instruments.

The Company considers the probability of default upon initial recognition of asset and also considers whether there has
been a significant increase in credit risk on an ongoing basis through each reporting period. To assess whether there
is a significant increase in credit risk, the Company compares the risk of default occurring on asset as at the reporting
date with the risk of default as at the date of initial recognition. It considers reasonable and supportive forwarding-looking
information such as:

i) Actual or expected significant adverse changes in business,

ii) Actual or expected significant changes in the operating results of the counterparty,

iii) Financial or economic conditions that are expected to cause a significant change to the counterparty's ability to
meet its obligations,

iv) Significant increase in credit risk on other financial instruments of the same counterparty,

v) Significant changes in the value of the collateral supporting the obligation or in the quality of the third-party
guarantees or credit enhancements.

Financial assets are written off when there is no reasonable expectation of recovery, such as a debtor failing to engage
in a repayment plan with the Company. Where loans or receivables have been written off, the Company continues
to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are
recognized as income in the statement of profit and loss. The Company measures the expected credit loss of trade
receivables based on historical trend, industry practices and the business environment in which the entity operates.
Loss rates are based on actual credit loss experience and past trends. Based on the historical data, loss on collection of
receivable is not material hence no additional provision considered.

a) Trade Receivables:

The Company extends credit to customers in normal course of business. The Company considers factors
such as credit track record in the market and past dealings with the Company for extension of credit to customers.
The Company monitors the payment track record of the customers. Outstanding customer receivables are
regularly monitored. The Company evaluates the concentration of risk with respect to trade receivables as low,
as its customers are located in several jurisdictions and industries are operate in largely independent markets.
The Company has also taken security deposits in certain cases from its customers, which mitigate the credit
risk to some extent. Further, the Company has policy of provision for doubtful debts. Revenue of ' Nil
(Previous year ' Nil) from a customer represents more than 10% of the Company revenue for the year ended
March 31, 2026. The Company does not expect any material risk on account of non-performance by Company's
counterparties.

The Company has used practical expedient by computing the expected credit loss allowance for trade receivables
based on provision matrix. The provision matrix taken into account historical credit loss experience and adjusted
for forward looking information. The expected credit loss allowance is based on ageing of the days the receivables
are due.

b) Financial instruments and cash deposits:

The Company considers factors such as track record, size of the institution, market reputation and service standards
to select the banks with which balances are maintained. Credit risk from balances with banks is managed by
the Company's finance department. Investment of surplus funds are also managed by finance department. The
Company does not maintain significant cash in hand. Excess balance of cash other than those required for its day
to day operations is deposited into the bank.

For other financial instruments, the finance department assesses and manage credit risk based on internal
assessment. Internal assessment is performed for each class of financial instrument with different characteristics.

45.3 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, at all times, maintain optimum levels of liquidity to
meet its cash and collateral requirements. The Company relies operating cash flows, short term borrowings in the form
of working capital loan to meet its needs for funds. Company does not breach any covenants (where applicable) on any
of its borrowing facilities. The Company has access to a sufficient variety of sources of funding as per requirement. The
Company has also the sanctioned limit from the banks.

The table below provides undiscounted cash flows towards financial liabilities into relevant maturity based on the
remaining period at the balance sheet to the contractual maturity date.

45.4 Competition and price risk

The Company faces competition from local and foreign competitors. Nevertheless, it believes that it has competitive
advantage in terms of high quality products and by continuously upgrading its expertise and range of products to meet
the needs of its customers.

NOTE 46: CAPITAL MANAGEMENT

For the purpose of Company's capital management, capital includes issued capital, other equity and debts. The primary
objective of the Company's capital management is to maximise shareholders value. The Company manages its capital
structure and makes adjustments in the light of changes in economic environment and the requirements of the financial
covenants.

The Company monitors capital using gearing ratio, which is net debt divided by total capital (equity plus net debt). Net debt
are non-current and current debts as reduced by cash and cash equivalents and current investments. Equity comprises all
components including other comprehensive income.

The quarterly statements including revision thereon of Inventories and trade receivables filed by the Company with banks/
financial institutions are in agreement with the books of accounts.

NOTE 51: OTHER STATUTORY INFORMATIONS

i) There is no balance outstanding on account of any transaction with companies struck off under section 248 of the
Companies Act, 2013 or section 560 of Companies Act, 1956.

ii) The Company does not have more than two layers of subsidiary as prescribed under Section 2 (87) of the Companies
Act, 2013 read with Companies (Restriction on number of layers) Rules, 2017.

iii) The Company has not advanced or loaned or invested fund to any other persons or entities including foreign entities
(intermediary) with the understanding (whether recorded in writing or otherwise) that 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 beneficiary) or

b) provided any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

iv) The Company has not received any fund from any person or entities 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.

v) 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.

vi) The Company has not been declared as wilful defaulter by any bank or financial institution or other lender.

vii) There are no charges or satisfaction thereof which are yet to be registered with ROC beyond the statutory period.

NOTE 52: The Management and authorities have the power to amend the Financial Statements in accordance with section
130 and 131 of the Companies Act, 2013.

NOTE 53: Previous Year figures have been regrouped and rearranged wherever necessary to make them comparable.