1.14 Provisions

Provisions are recognized when the Company has
a present obligation (legal or constructive) because
of a past event, it is probable that the Company will
be required to settle the obligation, and a reliable
estimate can be made of the amount of the obligation.
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,
considering 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).

When some or all of the economic benefits required
to settle a provision are expected to be recovered
from a third party, a receivable is recognized as an
asset if it is virtually certain that reimbursement will
be received,and the amount of the receivable can be
measured reliably

1.15 Financial instruments

Financial assets and financial liabilities are recognized
when a company entity becomes a party to the
contractual provisions of the instruments.

Financial assets and financial liabilities are initially
measured at fair value. Transaction costs that
are directly attributable to the acquisition or issue
of financial assets and financial liabilities (other
than financial assets and financial liabilities at
fair value through profit or loss) are added to or
deducted from the fair value of the financial assets
or financial liabilities, as appropriate, on initial
recognition. Transaction costs directly attributable to
the acquisition of financial assets or financial liabilities
at fair value through profit or loss are recognized
immediately in profit or loss. J

1.16 Financial assets

All regular way purchases or sales of financial assets
are recognized and derecognized on a trade date
basis. Regular way purchases or sales are purchases
or sales of financial assets that require delivery of
assets within the time frame established by regulation
or convention in the marketplace.

All recognized financial assets are subsequently
measured in their entirety at either amortized cost
or fair value, depending on the classification of the
financial assets.

a. Classification of financial assets

Debt instruments that meet the following conditions
are subsequently measured at amortized cost (except
for debt instruments that are designated as at fair
value through profit or loss on initial recognition).
The debt instruments carried at amortized cost
include Deposits, Debtors, Loans and advances
recoverable in cash.

The asset is held within a business model whose
objective is to hold assets to collect contractual cash
flows; andthe contractual terms of the instrument give
rise on specified dates to cash flows that are solely
payments of principal and interest on the principal
amount outstanding.All other financial assets are
subsequently measured at fair value.

b. Effective interest method

The effective interest method is a method of
calculating the amortized cost of a debt instrument
and of allocating interest expenses over the relevant
period. The effective interest rate is the rate that
exactly discounts estimated future cash receipts
(including all fees and points paid or received that
form an integral part of the effective interest rate,
transaction costs and other premiums or discounts)
through the expected life of the debt instrument,
or, where appropriate, a shorter period, to the net
carrying amount on initial recognition.

Expense isrecognized on an effective interest basis
for debt instruments other than those financial
liabilities classified as at FVTPL. Interest expense
is recognized in profit or loss and is included in the
Finance cost line item.

c. Investments in equity instruments at FVTPL
(Fair Value Through Profit and Loss account)

The Company has elected to carry investment in
equity instruments as Fair value through Profit and
Loss account. On initial recognition, the Company can
make an irrevocable election (on an instrument-by¬
instrument basis) to present the subsequent changes
, in fair value in profit and loss account pertaining to

investments in equity instruments. This election is
permitted if the equity investment is held for trading.
These elected investments are initially measured at
fair value plus transaction costs. Subsequently, they
are measured at fair value with gains and losses
arising from changes in fair value recognized in the
Profit and Loss account.

The Company has certain strategic equity
investments,and some are heldfor trading.
The Company has chosen the FVTPL irrevocable
option for these investments (see note 5). Fair value
is determined in the manner described in note 37.3.

d. Financial assets at fair value through profit
or loss (FVTPL)

Financial assets at FVTPL are measured at fair value
at the end of each reporting period, with any gains
or losses arising on re-measurement recognized in
profit or loss. The net gain or loss recognized in profit
or loss incorporates any dividend or interest earned
on the financial asset and is included in the 'Other
income' line item.

e. Impairment of financial assets

The Company applies the expected credit loss model
for recognizing impairment loss on financial assets
measured at amortized cost, lease receivables,
trade receivables, and other contractual rights to
receive cash or other financial assets, and financial
guarantees not designated as at FVTPL.

Expected credit losses are the weighted average
of credit losses with the respective risks of default
occurring as the weights. Credit loss is the difference
between all contractual cash flows that are due to the
Company in accordance with the contract and all the
cash flows that the Company expects to receive (i.e.,
all cash shortfalls), discounted at the original effective
interest rate (or credit-adjusted effective interest rate
for purchased or originated credit-impaired financial
assets). The Company estimates cash flows by
considering all contractual terms of the financial
instrument through the expected life of that financial
instrument.

For trade receivables or any contractual right
to receive cash or another financial asset that
resultsfrom transactions that are within the scope
of Ind AS 11 and Ind AS 18, the Company always
measures the loss allowance at an amount equal to
lifetime expected credit losses.

The company assesses the impairment of trade
receivables on case-to-case basis and creates
allowance for expected credit loss accordingly.

. f. De-recognition of financial assets

The Company de-recognizes a financial asset
when the contractual rights to the cash flow from
the asset expire, or when it transfers the financial
asset and substantially all the risks and rewards
of ownership of the asset to another party. If the
Company neither transfers nor retains substantially
all the risks and rewards of ownership and continues
to control the transferred assets, the Company
recognizes its retained interest in the asset and an
associated liability for amounts it may have to pay. If
the Company retains substantially all the risks and
rewards of ownership of a transferred financial asset,
the Company continues to recognize the financial
asset andrecognizes a collateralized borrowing for
the proceeds received.

On de-recognition of a financial asset in its entirety,
the difference between the asset's carrying amount
and the sum of the consideration received and
receivable and the cumulative gain or loss that had
been recognized in other comprehensive income
and accumulated in equity is recognized in profit or
loss if such gain or loss would have otherwise been
recognized in profit or loss on disposal of that financial
asset.

g. Modification of financial assets

When the contractual cash flows of a financial asset
is modified without requiring derecognition then
the gross carrying amount of the financial assets is
recalculated based on the modified cash flows and
a gain or loss is recognized in the statement of profit
and loss for the difference between the amortized
cost before modification and the recalculated gross
carrying amount.

1.17 Financial liabilities

All financial liabilities are subsequently measured at
amortized cost using the effective interest method or
at FVTPL.

However, financial liabilities that arise when a transfer
of a financial asset does not qualify for de-recognition
or when the continuing involvement approach applies,
financial guarantee contracts issued by the Company,
and commitments issued by the Company to provide
a loan at below-market interest rate are measured in
accordance with the specific accounting policies set
out below.

a. Financial liabilities at FVTPL

Financial liabilities at FVTPL include derivative
liabilities. Non-derivative financial liabilities are
classified as at FVTPL when the financial liability
i is either contingent consideration recognized by

theCompany as an acquirer in a business combination
to which Ind AS 103 applies or is held for trading or it is
designated as at FVTPL. There are no non-derivative
financial liabilities carried at FVTPL.

Financial liabilities at FVTPL are stated at fair value,
with any gains or losses arising on re-measurement
recognized in profit or loss. Fair value is determined
in the manner described in note 37.3.

b. Financial liabilities subsequently measured
at amortized cost

Financial liabilities that are not held-for-trading and
are not designated as at FVTPL are measured at
amortized cost at the end of subsequent accounting
periods. The carrying amounts of financial liabilities
that are subsequently measured at amortized cost are
determined based on the effective interest method.
Interest expense that is not capitalized as part of costs
of an asset is included in the 'Finance Cost line item.

c. De-recognition of financial liabilities

The Company de-recognizes financial liabilities
when, and only when, the Company's obligations
are discharged, cancelled, or have expired.
An exchange between with a lender of debt
instruments with substantially different terms is
accounted for as an extinguishment of the original
financial liability and the recognition of a new
financial liability. Similarly, a substantial modification
of the terms of an existing financial liability (whether
or not attributable to the financial difficulty of the
debtor) is accounted for as an extinguishment of the
original financial liability and the recognition of a new
financial liability. The difference between the carrying
amount of the financial liability derecognized and
the consideration paid and payable is recognized in
profit or loss.

1.18 Cash flow statement

Cash flows are reported using the indirect method,
whereby profit / (loss) before tax is adjusted for the
effects of transactions of non-cash nature and any
deferrals or accruals of past or future cash receipts
or payments. The cash flows from operating,
investing, and financing activities of the Company
are segregated based on the available information.

1.19 Key sources of estimation uncertainty and
judgement made:

The estimates and underlying assumptions are
reviewed on an ongoing basis. Revisions to
accounting estimates are recognized 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.

Key assumption 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
is as given below.

a. Fair value measurement and valuation
processes

Some of the Company's assets and liabilities
are measured at fair value for financial reporting
purposes. In estimating the fair value of an asset or a
liability, the Company uses market-observable data to
the extent it is available. Where Level 1 inputs are not
available, the Company engages third party qualified
valuers to perform the valuation. The management
works closely with the qualified external valuers to
establish the appropriate valuation techniques and
inputs to the model. Information about the valuation
techniques and inputs used in determining the fair
value of various assets and liabilities are disclosed
in note 37.3.

b. Useful lives of Property, Plant and Equipment

The useful life of property, plant, equipment, and
other intangible assets are reviewed at each reporting
date. Any re-adjustment would result in revised
depreciation for the future periods.

c. Provisions and contingent liabilities

The Company estimates provisions that have present
obligations because of past events, and it is probable
that an outflow of resources will be required to settle
the obligations. These provisions are reviewed at
the end of each reporting period and are adjusted to
reflect the current best estimates.

d. Provision for Income tax and Deferred tax
The Income tax expenses for the year estimated using
assumptions and judgements, certain allowances and
provisions, any change in actual income tax expenses
is recognized in the year it arises. Deferred tax assets
are recognized to the extent of future taxable profit
expected by the management.

e. Provision for defined benefit obligations to
employees

The Company's provisions for defined benefit
obligations are on the basis of actuarial valuation
report which uses various inputs and assumptions
to estimate the obligations. (Refer note 34).

f. Significant judgements made in the preparation
of financials

(a) Outcome of the litigations involving the
company:

The impact of litigations involving the Company
has been presented based on the best judgement
of the Company on the outcome of these litigations
wherever the management expects the outcome

to be unfavorable, the expected outflow is
estimated and provided in the books based on the
provisioning policy.

1.20 Operating Cycle

Based on the nature of products / activities of the
Company and the normal time between acquisition
of assets and their realization in cash or cash
equivalents, the Company has determined its
operating cycle as 12 months for the purpose of
classification of its assets and liabilities as current
and non-current.

1.21 Impairment of assets

On each reporting date, the Company reviews the
carrying amounts of assets to evaluate whether if
assets have suffered an impairment loss. If any such
indication exists, the recoverable amount of the asset
is estimated in order to determine the extent of the
impairment loss (if any). When it is not possible to
estimate the recoverable amount of an individual
asset, the company estimates the recoverable
amount of the cash-generating unit as relevant.
Intangible assets with indefinite useful lives, goodwill
and intangible assets not yet available for use
are tested for impairment at least annually, and
whenever there is an indication that the asset may
be impaired. If the recoverable amount of an asset
(or cash-generating unit) is estimated to be less than
its carrying amount, the carrying amount of the asset
(or cash-generating unit) is reduced accordingly.

An impairment loss is recognised immediately in
statement of profit and loss if identified.

1.22 Cash and Cash equivalents

TheCompany considers all highly liquid investments,
which are readily convertible into known amounts
of cash that are subject to an insignificant risk of
change in value to be cash equivalents. Cash and
cash equivalents consist of balances with banks
which are unrestricted for withdrawal and usage.

1.23 Recent accounting 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. For the year
ended March 31, 2025, MCA has notified Ind AS
117 Insurance contracts and amendments to Ind
AS 116-Leases, relating to sale and leaseback
transactions, applicable w.e.f. April 1, 2024. The
Company has evaluated the new pronouncements
and has concluded that it does not have any impact
in its financial statements.

1.24 Rounding off amounts

All amounts disclosed in the financial statements and
notes have been rounded off to the nearest lakhs as
per the requirement of Schedule III, unless otherwise
stated.

Note 33

SEGMENT INFORMATION

Operating results are regularly reviewed by the entity's chief operating decision maker(CODM) to make decisions
about resources to be allocated to the segment and assess its performance and for which discrete financial information
is available for the following segments which are tabulated below. No operating segments have been aggregated in
arriving at the reportable segments of the Company. Specifically the Company's reportable segments under Ind AS 108
are as follows.

Revenue and expenses directly attributable to segments are reported under each reportable segment. Other expenses
and income which are not attributable or allocable to segments have been disclosed as net un-allocable expenses /
income.

Assets and liabilities that are directly attributable or allocable to segments are disclosed under each reportable
segment. All other assets and liabilities are disclosed as un-allocable. Property, plant and equipment that are used
interchangeable amont segments are not allocated to reportable segments.

Operating segments represent products also and therefore, separate disclosure of revenue from major products are not
made.

Inter segment transfer pricing:

Inter segment prices are normally negotiated amongst the segments with reference to cost, market prices and business
risks, within an overall objective of optimising the resources for the enterprise.

Note 34

A. Defined contribution plans

The Company makes Provident Fund, Superannuation Fund which are defined contribution plans, for qualifying
employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs
to fund the benefits. The Company recognised ' 170.28 Lakhs (PY ' 178.18 Lakhs) for provident fund contribution
and for superannuation fund contribution of ' 13.13 Lakhs (PY ' 13.13 Lakhs) in the statement of Profit or loss.
The contribution payable to these plans by the Company are at rates specified in the rules of the schemes.

B. Defined benefit plans (Gratuity)

In respect of Gratuity plan, the most recent actuarial valuation of the plan assets and the present value of the
defined benefit obligation were carried out as March 31, 2025 by fellow of the Institute of Actuaries of India. The
present value of the defined benefit obligation, and the related current service cost and past service cost, were
measured using the projected unit cost method. The following table sets forth the status of the Gratuity Plan of
the Company and the amount recognized in the Balance Sheet and Statment of Profit and Loss. The Comapny
provided the gratuity benefit through annual contributions to a fund managed by the ICICI Prudential Life Insurance
Company Limited.

The Company is exposed to various risks in providing the above gratuity benefit which are as follows:

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

Investment risk : The probability or likelihood of occurance of losses relative to the expected return on any
particular investment which in inherent.

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

Demographic risk : The Company has used certain mortality and attrition assumptions in valuation of the liability.
The Company is exposed to the risk of actual experience turning out to be worse compared to the assumption.

Gratuity

Liability to existing employees of the Company in respect of gratuity is covered insurance policy administered by the
Trust.

The actuarially valued liabilities under the Projected Unit Credit Method for the employees of the participating
enterprise of the trust are calculated enterprise wise. The investments available with the underwriter are adjusted in
proportion to the liability and the shortfall is provided for in the books of the participating enterprise. Consequently,
the actuarial loss / gain if any relating to the other participating enterprise is also borne by every other participating
enterprise.

The following table sets forth the status of the Gratuity plan of the Company and the amounts recognized in the
Balance sheet and the Statement of Profit and loss.

Note 36

36.1 Capital Management

The Company's capital management is intended to maximise the return to shareholders for meeting the long and short
term objectives of the Company through the leveraging of the debt and equity balance.

The Company determines the amount of capital required on the basis of annual and long-term operating plans and
strategic investment plans. The funding requirements are met through long and short term borrowings. The Company
monitors the capital structure on the basis of debt to equity ratio and the maturity of the overall debt of the Company.

37.1 Credit Risk Management

Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in financial loss to the
Company. The Company is exposed to credit risk from its operating activities (predominantly 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 counter parties are periodically monitored and
taken up on case to case basis. There is no material expected credit loss based on the past experience. However,
the Company assesses the impairment of trade receivables on case to case basis and has accordingly created loss
allowance. Company is collecting advance from its customer in sugar and distillery business effectively mitigating credit
risk to a negligible level. Further in respect of advances/loans given to registered farmers, Company holds a lien on cane
dues payable to them or to their guarantors.

The credit risk on cash and bank balances is limited because the counter parties are banks with high credit ratings
assigned by accredited rating agencies.

37.2 Liquidity Risk Management

The Company manages liquity 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.

Notes :

1. The Level 1 financial instruments are measured using quotes in active market and NAV declared by the Fund.

2. Fair value of financial assets and financial liabilities that are not measured at fair value (but fair value disclosures are
required)

3. In case of Invesments in debt instruments carried at amortized cost trade receivables, cash and cash equivalents,
trade payables, short term borrowings and other financial assets and liabilities it is assessed that the fair values
approximate their carrying amounts largely due to the short-term maturities of these instruments.

Note 40

The Company has filed the monthly statement of current assets with the Bank and same are in agreement with the
books of accounts except to the extent of disputed trade payables that have been excluded in the monthly statements
submitted to the bank for DP purposes.

Note 43

APPROVAL OF FINANCIAL STATEMENTS

The financial statements were approved by the Board of Directors on May 29, 2025.

Note 44

Previous years' figures have been regrouped / reclassified wherever necessary to correspond with the current year's
classification / disclosures.

In terms of our report attached For and on behalf of the Board of Directors of

For P. Chandrasekar LLP Kothari Sugars and Chemicals Limited

Chartered Accountants CIN : L15421TN1960PLC004310

FRN : 000580S/S200066

Nina B Kothari S. Sundarraman

S. Raghavendhar

Chairperson Director

Partner

¹ DIN:00020119 DIN: 01032768

Membership No.244016

Place : Chennai R. Prakash R. Krishnan

Date : May 29, 2025 Company Secretary Chief Financial Officer