2.20 Provisions, contingent liabilities and contingent assets

Provisions are recognized only when there is a present obligation as a result of past events and when a reasonable estimate of
the amount of obligation can be made. The amount recognized as a provision is the best estimate of the consideration required
to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding
the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying
amount is the present value of those cash flows (when the effect of the time value of money is material).

Contingent liabilities are disclosed for (i) possible obligation which will be confirmed only by future events not wholly within
the control of the Company or (ii) present obligations arising from past events where it is not probable that an outflow of
resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.
Contingent assets are neither recognized nor disclosed in the financial statements.

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

2.21 Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument
of another entity.

2.22 Financial assets

2.22.1 Initial recognition and measurement

Financial assets are classified, at initial recognition, as subsequently measured at amortised cost, fair value through other
comprehensive income (OCI), and fair value through profit or loss.

The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow characteristics
and the Company’s business model for managing them. With the exception of trade receivables that do not contain a significant
financing component or for which the Company has applied the practical expedient, the Company initially measures a financial
asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs. Trade
receivables that do not contain a significant financing component or for which the Company has applied the practical expedient
are measured at the transaction price determined under Ind AS 115. Refer note 2.4.

In order for a financial asset to be classified and measured at amortised cost or fair value through OCI, it needs to give rise to
cash flows that are ‘solely payments of principal and interest (SPPI)’ on the principal amount outstanding. This assessment

is referred to as the SPPI test and is performed at an instrument Level. Financial assets with cash flows that are not SPPI are
classified and measured at fair value through profit or Loss, irrespective of the business model.

The Company’s business model for managing financial assets refers to how it manages its financial assets in order to generate
cash flows. The business model determines whether cash flows will result from collecting contractual cash flows, selling the
financial assets, or both. Financial assets classified and measured at amortised cost are held within a business model with the
objective to hold financial assets in order to collect contractual cash flows while financial assets classified and measured at fair
value through OCI are held within a business model with the objective of both holding to collect contractual cash flows and
selling.

Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention
in the marketplace (regular way trades) are recognised on the trade date, i.e., the date that the Company commits to purchase
or sell the asset.

2.22.2 Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in four categories:

• Financial assets at amortised cost (debt instruments)

• Financial assets at fair value through other comprehensive income (FVTOCI) with recycling of cumulative gains and losses
(debt instruments)

• Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon derecognition
(equity instruments)

• Financial assets at fair value through profit or loss
Financial assets at amortised cost (debt instruments)

A ‘financial asset’ is measured at the amortised cost if both the following conditions are met:

• The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and

• Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest
(SPPI) on the principal amount outstanding.

This category is the most relevant to the Company. After initial measurement, such financial assets are subsequently measured
at amortised cost using the effective interest rate (EIR) method and are subject to impairment as per the accounting policy
applicable to ‘Impairment of financial assets. Amortised cost is calculated by taking into account any discount or premium on
acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included in other income in the profit or
loss. The losses arising from impairment are recognised in the profit or loss.

Financial assets at fair value through OCI (FVTOCI) (debt instruments)

A ‘financial asset’ is classified as at the FVTOCI if both of the following criteria are met:

• The objective of the business model is achieved both by collecting contractual cash flows and selling the financial assets,
and

• The asset’s contractual cash flows represent SPPI.

Debt instruments included within the FVTOCI category are measured initially as well as at each reporting date at fair value. For
debt instruments, at fair value through OCI, interest income, foreign exchange revaluation and impairment losses or reversals
are recognised in the profit or loss and computed in the same manner as for financial assets measured at amortised cost. The
remaining fair value changes are recognised in OCI. Upon derecognition, the cumulative fair value changes recognised in OCI is
reclassified from the equity to profit or loss.

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

Upon initial recognition, the Company can elect to classify irrevocably its equity investments as equity instruments designated
at fair value through OCI when they meet the definition of equity under Ind AS 32 Financial Instruments: Presentation and are
not held for trading. The classification is determined on an instrument-by-instrument basis. Equity instruments which are held
for trading and contingent consideration recognised by an acquirer in a business combination to which Ind AS 103 applies are
classified as at FVTPL.

Gains and losses on these financial assets are never recycled to profit or loss. However, on derecognition, the Company may
transfer the cumulative gain or loss within equity. Dividends are recognised as other income in the statement of profit and loss
when the right of payment has been established, except when the Company benefits from such proceeds as a recovery of part
of the cost of the financial asset, in which case, such gains are recorded in OCI. Equity instruments designated at fair value
through OCI are not subject to impairment assessment.

Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss are carried in the balance sheet at fair value with net changes in fair value
recognised under other income in the statement of profit and loss.

Dividends on listed equity investments are recognised in the statement of profit and loss when the right of payment has been
established.

2.22.3 Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily
derecognised (i.e. removed from the Company’s balance sheet) when:

• The rights to receive cash flows from the asset have expired, or

• The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the
received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either (a) the
Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred
nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset

When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement,
it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor
retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Company continues
to recognise the transferred asset to the extent of the Company’s continuing involvement. In that case, the Company also
recognises an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the
rights and obligations that the Company has retained.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original
carrying amount of the asset and the maximum amount of consideration that the Company could be required to repay.

2.22.4 Impairment of financial assets

The Company recognises an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value through
profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all
the cash flows that the Company expects to receive, discounted at an approximation of the original effective interest rate. The
expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to
the contractual terms.

ECLs are recognised in two stages. For credit exposures for which there has not been a significant increase in credit risk
since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next
12-months (a 12-month ECL). For those credit exposures for which there has been a significant increase in credit risk since
initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of
the timing of the default (a lifetime ECL).

For trade receivables, the Company applies a simplified approach in calculating ECLs. Therefore, the Company does not track
changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date. The Company has
established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific
to the trade receivables and the economic environment.

For debt instruments at fair value through OCI, the Company applies the low credit risk simplification. At every reporting date,
the Company evaluates whether the debt instrument is considered to have low credit risk using all reasonable and supportable
information that is available without undue cost or effort. In making that evaluation, the Company reassesses the internal credit
rating of the debt instrument.

2.23 Financial liabilities

2.23.1 Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and
borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly
attributable transaction costs.

2.23.2 Subsequent measurement

For purposes of subsequent measurement, financial liabilities are classified in two categories:

• Financial liabilities at fair value through profit or loss

• Financial liabilities at amortised cost (loans and borrowings)

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities
designated upon initial recognition as at fair value through profit or loss.

Financial Liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term.
This category also includes derivative financial instruments entered into by the Company that are not designated as hedging
instruments in hedge relationships as defined by Ind AS 109.

Gains or losses on liabilities held for trading are recognised in the profit or loss.

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated as such at the initial
date of recognition, and only if the criteria in Ind AS 109 are satisfied. For liabilities designated as FVTPL, fair value gains/
losses attributable to changes in own credit risk are recognized in OCI. These gains/ losses are not subsequently transferred
to P&L. However, the Company may transfer the cumulative gain or Loss within equity. ALL other changes in fair value of such
liability are recognised in the statement of profit and loss. The Company has not designated any financial liability as at fair value
through profit or loss.

Financial liabilities at amortised cost (Loans and borrowings)

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR
method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR
amortisation process.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral
part of the EIR. The EIR amortisation is included as finance costs in the statement of profit and loss.

2.23.3 Supplier Finance Arrangements

The Company has established supplier finance arrangements and evaluates the classification of such arrangements basis
specific terms of the arrangement.

The Company classifies financial liabilities covered under supplier finance arrangement within trade payables in the balance
sheet only if (i) the obligation represents a liability to pay for goods and services, (ii) is invoiced and formally agreed with the
supplier, (iii) is part of the working capital used in its normal operating cycle, (iv) the company is not legally released from its
original obligation to the supplier, and has not assumed a new obligation toward the bank, and another party (v) there is no
substantial modification to the terms of the liability.

If one or more of the above criteria are not met, the Company derecognises its original liability toward the supplier and recognise
a new liability toward the bank which is classified as acceptances. Interest borne by the Company on such arrangements is
accounted as finance cost. Cash flows related to liabilities arising from supplier finance arrangements are included in operating
activities in the standalone statement of cash flows, when the Company finally settles the liability, reflecting the substance of
the payment.

2.23.4 Financial guarantee contracts

Financial guarantee contracts issued by the Company are those contracts that require a payment to be made to reimburse the
holder for a loss it incurs because the specified debtor fails to make a payment when due in accordance with the terms of a debt
instrument. Financial guarantee contracts are recognised initially as a liability at fair value, adjusted for transaction costs that
are directly attributable to the issuance of the guarantee. Subsequently, the liability is measured at the higher of the amount of
loss allowance determined as per impairment requirements of Ind AS 109 and the amount recognised less, when appropriate,
the cumulative amount of income recognised in accordance with the principles of Ind AS 115.

2.23.5 Derecognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an
existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an
existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original
liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement
of profit and loss.

2.24 Offsetting of financial instruments

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

2.25 Derivative financial instruments and hedge accounting

2.25.1 Initial recognition and subsequent measurement

The Company uses derivative financial instruments, such as forward currency contracts, to hedge its foreign currency risks.
Such derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered
into and are subsequently re-measured at fair value. Derivatives are carried as financial assets when the fair value is positive
and as financial liabilities when the fair value is negative.

The purchase contracts that meet the definition of a derivative under Ind AS 109 are recognised in the statement of profit and
loss.

Any gains or losses arising from changes in the fair value of derivatives are taken directly to profit or loss, except for the
effective portion of cash flow hedges, which is recognised in OCI and later reclassified to profit or loss when the hedge item
affects profit or loss or treated as basis adjustment if a hedged forecast transaction subsequently results in the recognition of a
non-financial asset or non-financial liability.

For the purpose of hedge accounting, hedges are classified as:

• Fair value hedges when hedging the exposure to changes in the fair value of a recognised asset or liability or an
unrecognised firm commitment.

• Cash flow hedges when hedging the exposure to variability in cash flows that is either attributable to a particular risk
associated with a recognised asset or liability or a highly probable forecast transaction or the foreign currency risk in an
unrecognised firm commitment.

At the inception of a hedge relationship, the Company formally designates and documents the hedge relationship to which the
Company wishes to apply hedge accounting and the risk management objective and strategy for undertaking the hedge.

The documentation includes identification of the hedging instrument, the hedged item, the nature of the risk being hedged, and
how the Company will assess whether the hedging relationship meets the hedge effectiveness requirements (including the
analysis of sources of hedge ineffectiveness and how the hedge ratio is determined). A hedging relationship qualifies for hedge
accounting if it meets all of the following effectiveness requirements:

• There is ‘an economic relationship’ between the hedged item and the hedging instrument.

• The effect of credit risk does not ‘dominate the value changes’ that result from that economic relationship.

• The hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged item that the
Company actually hedges and the quantity of the hedging instrument that the Company actually uses to hedge that
quantity of hedged item.

Hedges that meet the strict criteria for hedge accounting are accounted for, as described below:

Cash flow hedges

The effective portion of the gain or loss on the hedging instrument is recognised in OCI in the Effective portion of cash flow
hedges, while any ineffective portion is recognised immediately in the statement of profit and loss. The Effective portion of cash
flow hedges is adjusted to the lower of the cumulative gain or loss on the hedging instrument and the cumulative change in fair
value of the hedged item.

The Company uses forward currency contracts as hedges of its exposure to foreign currency risk in forecast transactions and
firm commitments, as well as forward commodity contracts for its exposure to volatility in the commodity prices. The ineffective
portion relating to foreign currency contracts is recognised in finance costs and the ineffective portion relating to commodity
contracts is recognised in other income or expenses.

The Company designates only the spot element of a forward contract as a hedging instrument. The forward element is
recognised in OCI.

The amounts accumulated in OCI are accounted for, depending on the nature of the underlying hedged transaction. If the hedged
transaction subsequently results in the recognition of a non-financial item, the amount accumulated in equity is removed from
the separate component of equity and included in the initial cost or other carrying amount of the hedged asset or liability. This
is not a reclassification adjustment and will not be recognised in OCI. This also applies where the hedged forecast transaction of
a non-financial asset or non-financial liability subsequently becomes a firm commitment for which fair value hedge accounting
is applied.

For any other cash flow hedges, the amount accumulated in OCI is reclassified to profit or loss as reclassification adjustment in
the same period or periods during which the hedged cash flows affect profit or loss.

If cash flow hedge accounting is discontinued, the amount that has been accumulated in OCI must remain in accumulated OCI
if the hedged future cash flows are still expected to occur. Otherwise, the amount will be immediately reclassified to profit
or loss as a reclassification adjustment. After discontinuation, once the hedged cash flow occurs, any amount remaining in
accumulated OCI must be accounted for depending on the nature of the underlying transaction as described above.

2.26 Dividend

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

2.27 Treasury Shares

The Company has created an ESOP Trust (ET) for providing share-based payment to its employees. The Company uses ET as
a vehicle for distributing shares to employees under the employee remuneration schemes. The ET buys shares of the Company
from the market, for giving shares to employees. The Company treats ET as its extension and shares held by ET are treated as
treasury shares.

Own equity instruments that are reacquired (treasury shares) are recognised at cost and deducted from other equity. No gain
or Loss is recognised in profit or Loss on the purchase, sale, issue or cancellation of the Company’s own equity instruments. Any
difference between the carrying amount and the consideration, if reissued, is recognised in retained earnings. Treasury shares
are allotted towards exercise of Share options during the reporting period.

2.28 Critical accounting judgements and key sources of estimation uncertainty

In the application of the Company’s accounting policies the directors of the Company are required to make judgements, estimates
and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The
estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant.
Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised
in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future
periods if the revision affects both current and future periods.

2.28.1 Key sources of estimation uncertainty

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

2.29 New and amended standards

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

(i) Amendments to Ind AS 1 - Classification of Liabilities as Current or Non-current and Non-current Liabilities with
Covenants

In August 2025, the MCA notified amendments to paragraphs 69 to 76 of Ind AS 1 to specify the requirements for
classifying liabilities as current or non-current. The amendments are effective for annual reporting periods beginning
on or after 1 April 2025 retrospectively in accordance with Ind AS 8. The amendments have not resulted in additional
disclosures and have not had an impact on the classification of Company’s liabilities.

(ii) Amendments to Ind AS 7 and Ind AS 107 - Supplier Finance Arrangements

In August 2025, the MCA notified amendments to Ind AS 7 Statement of Cash Flows and Ind AS 107 Financial Instruments:
Disclosures to clarify the characteristics of supplier finance arrangements and require additional disclosure of such
arrangements. The disclosure requirements in the amendments are intended to assist users of financial statements in
understanding the effects of supplier finance arrangements on an entity’s liabilities, cash flows and exposure to liquidity
risk.

As a result of implementing the amendments, the Company has provided additional disclosures about its supplier finance
arrangements. Please refer note 2.23.3 and note 23A to the standalone financial statements.

(iii) There are certain other amendments to Ind AS 12 Income Taxes and Ind AS 21 The Effects of Changes in Foreign Exchange
Rates, which did not have any impact on the Company.

2.30 Standards notified but not yet effective

There are no standards that are notified and not yet effective as on the date.

3. Property, plant and equipment and capital work-in-progress

Notes:

1. Refer Note 18.1 for details of assets pledged.

2. Interest capitalised during the year ^ 3,046 Lakhs (2025: ^ 512 Lakhs). The rate used to determine the borrowing cost eligible for
capitalisation during the year is 4.34% p.a (2025: 5.23% p.a) which is the effective interest rate of general borrowings.

3. The Company had carried out various merger/amalgamations, etc across various years. Pursuant to these actions, Company holds
certain immovable properties wherein the title of the property has been conveyed/transferred to the Company pursuant to such scheme
of amalgamation/arrangement and these are considered as valid title to the immovable property and no further actions such as name
change/additional registrations are necessary.

4. Details of immovable properties whose title deeds are not held in the name of the company:

Notes:

1. During the year ended 31 March 2025, Rama Phosphates Limited has split its shares in the ratio of 1:1. Consequently the number of
shares held by the Company increased to 27,438 shares.

2. During the year ended 31 March 2023, Andhra Pradesh Gas Power Corporation Limited (APGPCL) has closed its plant and laid off
employees, pursuant to cancellation of allocation of natural gas. The Company had accordingly fair valued its investment in APGPCL at
Nil.

3. The ordinary shares of Tunisian Indian Fertilisers S.A., Tunisia (TIFERT) held by the Company have been pledged to secure the obligations
of TIFERT to their lenders, except 8,04,848 shares.

4. Represents loan amounting ^1,609 Lakhs (2025: ^1,609 Lakhs) to TIFERT which was compulsorily convertible to equity shares. Based
on the terms of conversion, the said loan was due for conversion in June 2023 (originally extended by 2 years from June 2020). The
Company is in discussion with TIFERT to further extend this time period for conversion. During the year ended 31 March 2026 and 31
March 2025, the fair value of this loan has been considered as Nil.

5. Pursuant to the Share Purchase Agreement (‘SPA’) dated 25 September 2025, the Company through its Wholly Owned Subsidiary
(WOS), Coromandel Chemicals Limited (CCL), had acquired additional 8.82% equity stake in addition to its existing stake of 45% in its
associate Baobab Mining and Chemicals Corporation, S.A. (BMCC). Upon satisfactory completion of the substantive conditions that give
control over BMCC, BMCC ceased to be an associate and was classified as a step-down subsidiary of the Company with effect from 27
March 2025. As on March 31, 2026, pursuant to exercise of call option under the SPA and additional stake acquired in the current year,
CCL holds 71.51% stake in BMCC.

6. Pursuant to the restated Joint Venture Agreement, Yanmar Coromandel Agrisolutions Private Limited (YCAS), a joint venture (JV) had
allotted additional equity shares to Yanmar Asia (Singapore) Corporation Pte Ltd (Yanmar Singapore) on preferential basis, resulting in
a reduction of the Company’s stake from 40% to 10.60%. Accordingly, YCAS ceased to be a JV w.e.f 27 September 2024.

7. (i) On 12 March 2025, the Company entered into a share purchase agreement with the promoters and select public shareholders

of NACL Industries Limited (“NACL”) to acquire controlling stake in NACL, as a result of which on 8 August 2025, the Company
acquired 10,69,07,146 shares. Upon execution of Share Purchase Agreements, the Company also triggered a mandatory open
offer to acquire 26% of the public shareholding of NACL in terms of the SEBI (Substantial Acquisition of Shares and Takeovers)
Regulations, 2011, as amended from time to time. Pursuant to the open offer, the Company has acquired 5,435 equity shares of
NACL at the offer price of Rs. 76.70/- per equity share from the public shareholders of NACL. Consequently, as on 13 September
2025, the Company’s aggregate shareholding in NACL stood at 10,69,12,581 equity shares representing 53.08% of the voting
share capital.

(ii) On 31 December 2025, the Company was allotted 1,88,24,301 fully paid up Equity Shares of face value of Rs. 1/- each of NACL
for cash at an issue price of Rs. 76.70/- per Equity Share including subscription to Rights entitlement and additional shares applied.
Consequent to the said allotment, the shareholding of the Company in NACL increased from 10,69,12,581 fully paid-up Equity Shares
of face value of Rs. 1/- each to 12,57,36,882 fully-paid up Equity Shares of Rs. 1/- each. Further, the percentage of shareholding of
the Company in NACL increased to 53.73% post rights issue (53.69% as at 31 March 2026). NACL Industries Limited has utlised the
proceeds of rights issue for repayment of its debt of ^ 10,400 lakhs , ^ 8,300 lakhs towards repayment of debt of a subsidiary (NACL
Spec chem Limited) and balance towards general corporate purposes and issue expenses, of which ^ 3,080 lakhs is unutilised as at
31 March 2026.

8. For the year ended 31 March 2026, the Company has recognised an estimated provision towards impairment of investment relating to
Company’s Drones subsidiary business. This is primarily on account of delay in execution of certain orders.

9. The Company holds 100% of the quotas and is the only partner in the Limited Liability Partnership.

*includes 5,19,800 treasury shares (2025: 2,96,300). Refer Note 33.2.

16.3 Rights, preferences and restriction relating to equity share capital:

The Company has one class of equity shares having a face value of ^1 each . Each shareholder is eligible for one vote per share held. The
dividend proposed by the Board of Directors is subject to the approval of the Shareholders in the ensuing Annual General Meeting, except
in the case of interim dividend, which is declared and approved by the Board of Directors.

16.4 As at 31 March 2026, E.I.D.-Parry (India) Limited (Parent Company) held 16,39,55,580 (2025: 16,54,55,580) equity shares of ^1 each
fully paid-up representing 55.58% (2025: 56.16%) of the paid up capital. There are no other shareholders holding more than 5% of the
issued capital.

16.5 Share options granted under the Company's employee share option plan

As at 31 March 2026, balance number of shares reserved for issue under the ‘ESOP 2016’ scheme is Nil (2025: Nil) equity shares of
^1 each and under the ‘ESOP 2023’ scheme is 53,58,900 (2025: 53,58,900) equity shares of ^1 each. Share options granted under the
Company’s employee share option plan carry no rights to dividends and no voting rights. Further details of the employee share option plan
are provided in note 33.

16.6 There are no bonus shares issued and no shares were issued for consideration other than cash except for the shares allotted pursuant
to the exercise of stock options during the period of five years immediately preceding the reporting date.

Foreign currency forward contracts designated as hedging instruments in cash flow hedges of forecast sales in USD are measured at fair
value through OCI. While the Company enters into other foreign exchange forward contracts to reduce the foreign exchange risk, these other
contracts are not designated in hedge relationships and are measured at FVTPL.

The terms of the hedging instruments match the terms of the forecast transactions. As a result, no hedge ineffectiveness arise requiring
recognition through profit or loss.

Refer Note 14 and 19 for impact of hedging instruments on the balance sheet.
e. Foreign currency sensitivity analysis

The Company is mainly exposed to fluctuations in US Dollar. The following table details the Company’s sensitivity to a ^1 increase and
decrease against the US Dollar. ^1 is the sensitivity used when reporting foreign currency risk internally to key management personnel and
represents management’s assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes only net
outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a ^1 change in foreign currency
rates. A positive number below indicates an increase in profit or equity where the Rupee strengthens by ^1 against the US Dollar. For a ^1
weakening against the US Dollar, there would be a comparable impact on the profit or equity.

32.4.2 Interest rate risk management

The Company draws working capital demand loans, avails cash credit, foreign currency borrowings including buyers credit, Packing Credit
etc. for meeting its funding requirements.

Interest rates on these borrowings are exposed to change in respective benchmark rates. The Company manages the interest rate risk by
maintaining appropriate mix/portfolio of the borrowings.

Interest rate sensitivity analysis

The sensitivity analysis below has been determined for borrowings assuming the amount of borrowings outstanding at the end of the
reporting period was outstanding for the whole year. A 10 basis points increase or decrease in case of foreign currency borrowings and
50 basis points increase or decrease in case of rupee borrowings is used when reporting interest rate risk internally to key management
personnel and represents management’s assessment of the reasonably possible change in interest rates.

If interest rate had been 10 basis points higher/ lower in case of foreign currency borrowings and 50 basis points higher/ lower in case of
rupee borrowings and all other variables were held constant, the Company’s profit for the year ended 31 March 2026 would decrease/
increase by ^102 lakhs (31 March 2025: ^* lakhs).

* Less than ^1 lakh

32.4.3 Other price risks

The Company is exposed to equity price risks arising from equity investments. Certain of the Company’s equity investments are held for
strategic rather than trading purposes. The Company also holds certain other equity investments for trading purposes.

a. Equity price sensitivity analysis

The sensitivity analysis below have been determined based on the exposure to equity price risks at the end of the reporting period.

If equity prices had been 5% higher/lower other comprehensive income/equity for the year ended 31 March 2026 would increase/decrease by
Rs. 341 Lakhs (31 March 2025: ^442 Lakhs ) as a result of the changes in fair value of equity investments measured at FVTOCI. The impact
of change in equity price on profit or loss is not significant.

b. Commodity price risks

The Company’s operating activities require the ongoing purchase of rock phosphates, phosphoric acid, sulphur and muriate of potash. AH
being international commodities are subject to price fluctuations on account of the change in the demand supply pattern and exchange rate
fluctuations. The Company is generally not affected by the price volatility of the raw materials as government on a time to time basis, revises
the subsidy rates payable to the fertilizer industry based on the market trend. The Company has considered uncertainties relating to the
commodity prices in preparation of these financial statements.

32.5 Credit risk management

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. The
Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits
with banks and financial institutions, foreign exchange transactions and other financial instruments.

Customer credit risk is managed by each business unit subject to the Company’s established policy, procedures and control relating to the
customer credit risk management. The Company uses financial information and past experience to evaluate credit quality of majority of its
customers and individual credit limits are defined in accordance with this assessment. Outstanding receivables and the credit worthiness of
its counterparties are periodically monitored and taken up on case to case basis. The Company evaluates the concentration of risk with respect
to trade receivables as low (except Government subsidies which is entirely receivable from Government of India), as its customers are located
in several jurisdictions representing large number of minor receivables operating in independent markets.

The credit risk on cash and bank balances, derivative financial instruments is limited because the counterparties are banks with high credit
ratings assigned by international credit rating agencies.

For details of financial guarantee, refer note 32.7.

32.6 Liquidity risk management

The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously
monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities. Note 32.8 sets out details
of additional undrawn facilities that the Company has at its disposal to reduce liquidity risk.

The gratuity plan is governed by the Payment of Gratuity Act, 1972. Employee who has completed five years of service is entitled to specific
benefit depending on the employee’s length of service and salary at retirement or relieving age. The fund has the form of trust and it is
governed by the Board of Trustees which consists of employer and employee representatives. The Board of Trustees is responsible for the
administration of plan assets.

The Board of Trustees reviews the level of funding and asset-liability matching strategy in the gratuity plan to keep the scheme adequately
funded for settlement of obligations under the plan.

Category of plan assets: Gratuity for employees is covered under a scheme of Life Insurance Corporation of India (LIC) and ICICI Prudential
Life Insurance Company Limited (ICICI) which is basically a year-on-year cash accumulation plan. As part of the scheme the interest rate is
declared on yearly basis and is guaranteed for a period of one year. The insurance company, as part of the policy rules, makes payment of all
gratuity settlements during the year subject to sufficiency of funds under the policy.

ii) Contributions to PF Trust:

Provident Fund Trust is exempted under Section 17 of The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. Conditions
for the grant of exemption stipulate that the employer shall make good the deficiency, if any, in the interest rate declared by the Trust over
the statutory limit.

The Company has obtained the actuarial valuation of interest rate obligation in respect of provident fund and having regards to the assets of
the Fund and the return on the investments, the Company did not recognize any deficiency based on the actuary report obtained.

(C) Transactions with key management personnel

a) Dividends paid to key management personnel during the year ended 31 March 2026: ^92 Lakhs (2025: ^54 Lakhs).

b) Compensation of key management personnel of the Company:

The remuneration of directors and key executives is determined by the remuneration committee having regard to the performance of
individuals and market trends.

44. On 21 November 2025, the Central Government issued four separate notifications in the Official Gazette announcing implementation
of four Labour Codes, viz ., the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020 and the
Occupational Safety, Health and Working Conditions Code, 2020. These four codes replace and consolidate 29 existing Labour Laws.
Following the implementation of the four labour codes, the Central Government has pre-published the draft rules on 31 December
2025 under the respective Labour Codes, for public comment and the final rules are expected to be notified in due course. To ensure
smooth implementation, the Ministry of Labour and Employment has also issued the Frequently Asked Questions (FAQs) on the four
codes.

The four codes prescribe an inclusive definition of the term ‘wages’, which among other matters is relevant for determination of post¬
employment benefits including gratuity to all employees. In accordance with the definition, certain specified items forming part of
remuneration are not included in the wages and these excluded items cannot exceed 50% of total remuneration. If there is an excess,
then it is presumed that excess amount also forms part of wages. The four codes also introduce changes related to leave entitlement
and encashment for workers. Going forward, workers’ leave balance in excess of 30 days will be encashed at the end of each calendar
year and workers will have a right to demand encashment for entire leave.

The Company has assessed the impact of these changes on the basis of legal view obtained by the management and the best information
available till authorisation of the financial statements for issue. The Company has presented increase in obligation as an expense under
the head “Employee Benefit Expense” in the standalone statement of profit and loss for the year ended 31 March 2026. Considering
that it is emerging topic and the finalisation of Central/ State Rules is still pending, the Company will continue monitoring changes and
provide appropriate accounting effect as required based on future developments.

45. Other statutory information

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

(ii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

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

(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

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

(vi) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Companies Act, 2013, read with
the Companies (Restriction on number of Layers) Rules, 2017.

(vii) The Company has not entered into any Scheme of Arrangement approved by the competent authority under Sections 230 to 237 of the
Companies Act, 2013 during the year. Accordingly, no adjustments have been made in the books of account in this regard.

(viii) The Company has the following Core Investment Companies in the group:

1. Cholamandalam Financial Holdings Limited

2. Ambadi Investments Limited.

b) The Company has not received any fund from any persons or entities, including foreign entities (Funding Party) with the understanding
(whether recorded in writing or otherwise) that the Company shall, 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 provide any guarantee, security or
the like on behalf of the Ultimate Beneficiaries.

47. Events after the reporting date

There have been no material subsequent events after the reporting period that require adjustment or disclosure in these standalone financial
statements.