(xiv) Provisions and contingent liability

The Company recognizes a provision when a
present obligation (legal or constructive) as a
result of past event exists and it is probable that
an outflow of resources embodying economic
benefits will be required to settle such
obligation and the amount of such obligation
can be reliably estimated. These estimates are
reviewed at each reporting date and adjusted
to reflect the current best estimates.

A disclosure of contingent liability is made
when there is a possible obligation or a
present obligation that may, but probably will
not require an outflow of resources economic
benefits or the amount of such obligation
cannot be reliably measured. When there is
a possible obligation or a present obligation
in respect of which likelihood of outflow of
resources embodying economic benefits is
remote, no provision or disclosure is made.

(xv) Cash and cash equivalents

Cash and cash equivalents for the purpose of
the balance sheet comprise cash at banks and
on hand, short-term deposits with an original
maturity of three months or less that are
readily convertible to a known amount of cash
and subject to an insignificant risk of changes
in value.

Cash and cash equivalent for the purpose of
standalone statement of cash flows comprise
cash at banks and on hand, short term deposits
with an original maturity of three months or
less and highly liquid investments that are
readily convertible to a known amount of cash
and subject to an insignificant risk of changes
in value.

(xvi) Segment reporting

According to Ind AS 108, identification of
operating segments is based on the approach
of Chief Operating Decision Maker (‘CODM’)
for making decisions about allocating
resources to the segment and assessing
its performance.

Identification of segments:

An operating segment is a component of the
Company that engages in business activities
from which it earns revenues and incurs
expenses, including revenues and expenses
that relate to transactions with any of the
Company’s other components.

Results of the operating segments are
reviewed regularly by the management team
(Chairman and Managing Director, Joint
Managing Directors and Chief Financial
Officer) which have been identified as CODM
to make decisions about resources to be
allocated to the segment and assess its
performance and for which discrete financial
information is available.

Allocation of common costs:

Common allocable costs are allocated to each
segment according to the relative contribution
of each segment to the total common costs.

Unallocable items:

Expenses which relate to the Company as
a whole and are not allocable to segments
on a reasonable basis, have been included
under ‘Other unallocated expenditures’.
Assets and liabilities, which relate to the
Company as a whole and are not allocable
to segments on reasonable basis, are shown
as ‘Unallocated assets’ and ‘Unallocated
liabilities’ respectively.

(xvii) Earnings per share

Basic earnings per share is calculated by
dividing the net profit for the year attributable
to equity shareholders by the weighted
average number of equity shares outstanding
during the year.

Diluted earnings per share is computed using
the weighted average number of equity and
dilutive equity equivalent shares outstanding
during the year end, except where the results
would be anti-dilutive.

(xviii) Dividend to shareholders

The Company recognises a liability to
pay dividend to equity holders when the
distribution is approved by the shareholders,
and the distribution is no longer at the
discretion of the Company. In the period in
which the dividends are approved by the
equity shareholders in the general meeting, a
corresponding amount is recognised directly
in equity.

(xix) Critical judgements and estimates

The preparation of the standalone financial
statements requires management to make
judgements, estimates and assumptions that

affect the reported amounts of revenues,
expenses, assets and liabilities, and 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. Estimates and judgments
are continually evaluated and are based
on historical experience and other factors,
including expectations of future events
that are believed to be reasonable under
the circumstances. 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 period, if the revision
affects current and future period. Detailed
information about each of these estimates
and judgements is included in relevant notes
together with information about the basis of
calculation for each affected line item in the
financial statements is summarized below.

Defined benefit obligations

The cost of the defined benefit gratuity plan
is determined using actuarial valuations.
The actuarial valuation involves making
assumptions about discount rates, future
salary increases and mortality rates. Due to the
long-term nature of this plan, such estimates
are subject to significant uncertainty.

Useful life of property, plant and equipment

The charge in respect of periodic depreciation
is derived after determining an estimate of an
asset’s expected useful life and the expected
residual value. Increasing an asset’s expected
life or its residual value would result in a reduced
depreciation charge in the statement of profit
and loss. The useful lives of the Company’s
assets are determined by management at the
time the asset is acquired and reviewed at
least annually for appropriateness. The lives
are based on historical experience with similar
assets as well as anticipation of future events,
which may impact their life, such as changes
in technology.

Classification of legal matters

The litigations and claims to which the
Company is exposed to are assessed by
management with assistance of the legal
department and in certain cases with the
support of external specialized lawyers.
Determination of the outcome of these
matters into "Probable, Possible and Remote”
require judgement and estimation on case-to-
case basis.

Fair value measurements

When the fair values of financial assets and
financial liabilities recorded in the standalone
balance sheet cannot be measured based
on quoted prices in active markets, their fair
value is measured using valuation techniques.
The inputs to these models are taken
from observable markets where possible,
but where this is not feasible, a degree of
judgment 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.

Inventories

Management estimates the net realisable
values of finished goods, taking into account
the most reliable evidence available at each
reporting date. The future realisation of these
inventories may be affected by future market-
driven changes that may reduce future
selling prices.

Discounts / rebate to customers

The Company provides discount and rebates
on sales to certain customers. Revenue from
these sales is recognised based on the price
charged to the customer, net of the estimated
pricing allowances, discounts, rebates, and
other incentives. In certain cases, the amount of
these discount and rebates are not determined
until claims with appropriate evidence is
presented by the customer to the Company,
which may be some time after the date of
sale. Accordingly, the Company estimates
the amount of such incentives basis the terms
of contract, incentive schemes, historical
experience adjusted with the forward looking
and the business forecast. Such estimates are
subject to the estimation uncertainty.

(xx) Recent accounting pronouncements

The Company applied for the first-time
certain standards and amendments, which are
effective for annual periods beginning on or
after 1 April 2025.

(i) Amendments to Ind AS 21 - Lack of
exchangeability

MCA via notification dated May 7, 2025,
announced amendments to Ind AS 21, The
effects of Changes in Foreign Exchange
Rates, 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 also require
disclosure of information to enables users
of its financial statements to understand
how the currency not being exchangeable

into the other currency affects, or is
expected to affect, the entity’s financial
performance, financial position and
cash flows.

The amendments do not have a material
impact on the Company’s standalone
financial statements.

(ii) Amendments to Ind AS 1 - Classification
of liabilities as current or non-current
liabilities with covenants

MCA via notification dated
13 August 2025 announced amendments
to Ind AS 1, Presentation of Financial
Statements, which elaborate on guidance
set out in Ind AS 1 by:

Ý Clarifying that the right to defer
settlement of a liability for at least 12
months after the reporting period;

- Must have substance; and

- Must exist at the end of the reporting
period;

Ý Stating that management’s
expectations around whether the
settlement of a liability would be
deferred or not, does not impact the
classification of the liability;

Ý Including requirements of liabilities
that can be settled using an entity’s
own instruments; and

Ý Stating that at the reporting date, the
entity does not consider covenants
that will need to be complied with
in the future when considering the
classification of the debt as current
and non-current.

In addition an entity is required to disclose
when a liability arising from a loan
agreement is classified as non-current
and the entity’s right to defer settlement
is contingent on compliance with future
covenants within twelve months.

The amendments do not have a material
impact on the Company’s standalone
financial statements.

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

MCA via notification dated 13 August 2025
announced amendments to Ind AS 7, Statement
of Cash Flows and Ind AS 107, Financial
Instrument: Disclosures and which introduced
disclosure requirements with the objective to
enable users of financial statements to assess
how supplier finance arrangements affects an
entity’s liabilities, cashflows and exposure to
liquidity risk.

The amendments do not have a material
impact on the Company’s standalone
financial statements.

(iv) Amendments to Ind AS 12 - International
tax reform - pillar two model rules

MCA via notification dated 13 August

2025 announced amendments to Ind AS
12, Income Taxes, which includes:

Ý a temporary exception to the
recognition and disclosure of deferred
taxes arising from the implementation
of the Pillar Two model rules; and

Ý additional disclosure requirements
targeted at a reporting entity’s
exposure to income taxes in periods in
which the Pillar Two Model legislation
is enacted or substantively enacted
but not yet in effect.

The amendments do not have a material
impact on the Company’s standalone
financial statements.

(xxi) Standards notified but not yet effective

During the year ended 31 March 2026,
MCA has notified following new standards
or amendments to the existing standards
applicable to the Company:

(i) Amendments to Ind AS 1 - Classification
of liabilities as current or non-current
liabilities with covenants

Paragraph 74 of Ind AS 1 currently
effective for the year ended 31 March

2026 requires the entity not to classify
the liability as current, if there is a breach
of a material covenant of a long-term loan
arrangement on or before the end of the
reporting period with the effect that the
liability becomes payable on demand on
the reporting date, however, the lender
agreed, after the reporting period and
before the approval of the financial
statements for issue, not to demand
payment as a consequence of the breach.

MCA vide notification dated 13 August
2025, has introduced amendment under
paragraph 74 of Ind AS 1 which required
the entity to classify the liability under the
aforementioned situation because, at the
end of the reporting period, it does not
have the right to defer its settlement for at
least twelve months after that date. Such
amendment has been made effective for
annual reporting period beginning on
or after 1 April 2026 retrospectively in
accordance with Ind AS 8.

The amendment is not expected to have
a material impact on the Company’s
standalone financial statements.

Notes:

A Contractual obligations

Refer note 47B for disclosure of contractual commitments for the acquisition of property, plant and equipment.

B Property, plant and equipment pledged as security

Refer note 23C for information on property, plant and equipment pledged as security by the Company.

C Capital work-in-progress mainly comprise of plant and machinery and buildings which are under installation/
construction at the premises of the Company.

D The Company has adopted cost model for its property, plant and equipment. Therefore, no revaluation has
been made of the property, plant and equipment.

Notes:

1 On 26 June 1993, K B Overseas had entered into an agreement with Khushi Ram Bihari Lal Limited wherein K B
Overseas had transferred its entire business including all properties and assets to Khushi Ram Bihari Lal Limited.
Further pursuant to declaratory civil suit no. 962/1998 titled Khushi Ram Bihari Lal Limited vs. Bhagirath Lal
and Others decreed on 24 March 1999, the assets of K B Overseas inter-alia including these land parcels were
taken over by Khushi Ram Bihari Lal Limited and later the name of Khushi Ram Bihari Lal Limited was changed
to KRBL Limited on 1 February 2000. These properties were mutated in the name of Company and the name of
KRBL Limited has also been entered in land revenue records as bhumidhar. Thus, Company is the owner of said
land parcels.

2 The Company has physical possession of these land parcels vide Memorandum of Understandings entered into
by the Company with each of the above mentioned directors and their relatives. Further, the Company had also
executed and registered the General Power of Attorney, will and other necessary documents with the above
mentioned directors and their relative, in favour of the Company.

b) Terms/ rights attached to equity shares

The Company has only one class of equity shares having a face value of I 1 per share. Each holder of equity
shares is entitled to have one vote per share.

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

e) Aggregate number of shares bought back during the period of five years immediately preceding the
reporting date

During the financial year 2023-24, the Board of Directors of the Company at its meeting held on 10 August
2023 approved the buy-back of fully paid-up equity shares of face value of I 1/- each from its shareholders
and promoter group through tender offer for an aggregate amount not exceeding I 32,500 lacs. The Company
completed the buyback of 6,500,000 equity shares being 2.76% of the total paid up equity share capital at an
offer price of I 500. The equity shares bought back were extinguished on 20 September 2023. The buy-back
tax and other related expenses of buy-back were adjusted against the ‘Other Equity’ as per applicable sections
of the Act.

(ii) General reserve

The Company has transferred a portion of the net profit of the Company to general reserve from time
to time and it is not the item of other comprehensive income. Also the Company has earlier forfeited the
partly paid equity shares with the requisite approvals. The amount originally received against forfeited
shares is also included in the general reserve. The amount is to be utilised in accordance with the provision
of the Act.

A Details of hypothecation

The Company executed deed of hypothecation in favour of SBICAP Trustee Company Limited (acting as
Security Trustee) and created mortgage on its movable and immovable properties located at various locations
vide memorandum of entries against the sanctioned limit of I 155,500 lacs (31 March 2025: I 221,900 lacs) in
the form of loan and other facilities sanctioned by banks under consortium.

The Company has obtained working capital facilities from consortium banks which carries interest at 91 days
Treasury Bills rate / MCLR along with spread {total interest rate 6.75% p.a (31 March 2025: 7.17% p.a to 7.30 %
p.a)} and these facilities are secured by:

Ý First pari-passu charge on the entire current assets both present and future with working capital
consortium lenders.

Ý First pari-passu hypothecation charge on all rights, title, interest and benefit in all and singular, the
Company’s movable assets including but not limited to movable plant and machinery, furniture and fixtures,
and tangible and intangible assets, including, but not limited to tangible assets, both present and future.

Ý First pari-passu charge on the entire immovable fixed assets of the Company, both present and future
(except immovable fixed assets of the Company situated at Maharashtra, Madhya Pradesh and Gujarat).

Ý Company has undertaken not to sell, transfer, assign, dispose of, mortgage, charge, pledge or create any
lien or in any way encumber any of its immovable properties situated at Maharashtra, Madhya Pradesh
and Gujarat.

Further, the above current borrowings are secured vide the personal guarantees of Mr Anil Kumar Mittal, Mr
Arun Kumar Gupta, Mr Anoop Kumar Gupta and Mr. Ashish Mittal (the liability of Mr. Ashish Mittal shall be
limited only to the extent of the immovable properties mortgaged by him in favour of the security trustee for
the benefit of working capital lenders).

D The Company has filed the quarterly statements of current assets with the consortium lenders in accordance
with the terms of the sanction letters which are in agreement with the books of accounts.

E The Company has utilised the short-term working capital loan obtained from the consortium lenders for its
intended purpose only during the current year.

F There is no default as on the balance sheet date in repayment of borrowings and interest there on, and no
covenants has been breached during the year.

G The Company has not been declared wilful defaulter by any bank or financial institution or other lender or
government or any government authority.

B Defined benefit plans
Gratuity

The gratuity plan provides for a lump sum payment to the employees at the time of separation from the service
on completion of vested year of employment i.e. five years. The liability of gratuity plan is provided based on
actuarial valuation as at the end of each financial year based on which the Company contributes the ascertained
liability to Kotak Mahindra Life Insurance Company Limited with whom the plan assets are maintained.

Policy for recognizing actuarial gains and losses

Actuarial gains and losses of defend benefit plan arising from experience adjustments and effects of changes
in actuarial assumptions are immediately recognized in other comprehensive income. Risks associated with
the plan provisions are actuarial risks. These risk are investment risk, interest rate risk, mortality risk, salary
increase risk and concentration risk.

Interest rate risk

A fall in the discount rate which is linked to the Government security rate will increase the present value of the
liability requiring higher provision. A fall in the discount rate generally increases the mark to market value of
the assets depending on the duration of asset.

Investment risk

The present value of the defined benefit plan liability is calculated using a discount rate which is determined by
reference to market yields at the end of the reporting period on government bonds. If the return on plan asset
is below this rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively balanced mix of
investments in government securities, and other debt instruments.

Mortality risk

Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not
have any longevity risk.

Salary increase risk

The present value of the defined benefit plan liability is calculated by reference to the future salaries of members.
As such, an increase in the salary of the members more than assumed level will increase the plan’s liability.

Concentration risk

Plan is having a concentration risk as all the assets are invested with the insurance company and a default will
wipe out all the assets. Although probability of this is very low as insurance companies have to follow stringent
regulatory guidelines which mitigate risk.

The present value of the defined benefit obligation calculated with the same method (project unit credit) as the
defined benefit obligation recognised in the standalone balance sheet. The sensitivity analyses are based on a
change in one assumption while not changing all other assumptions. This analysis may not be representative
of the actual change in the defined benefit obligation as it is unlikely that the change in any of the assumptions
would occur in isolation of one another as some of the assumptions are correlated. There was no change in the
methods and assumptions used in preparing the sensitivity analysis from prior years.

k. On 21 November 2025, the Government of India notified the four new Labour Codes (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) consolidating 29 existing labour laws. The Company has done
an assessment and considered an impact of the changes and accordingly accounted an additional expense of
I 947 lacs towards gratuity obligation. The Company continues to monitor the finalisation of Central / State
Rules and clarifications from the Government on other aspects of the Labour Codes and rationalise the impact
on the standalone financial statements as and when such clarifications are issued/ rules are notified.

41 Corporate social responsibility (‘CSR’)

In accordance with the provisions of section 135 of the Companies Act, 2013, the Company shall ensure spend
of at least two percent of its average net profits made during the three immediately preceding financial years
in pursuance of its CSR policy. Basis the recommendation of CSR committee, the Board of Directors of the
Company had approved various ‘Ongoing’ and ‘Other than Ongoing projects’ for carrying out CSR activities
as per the Schedule VII of the Companies Act, 2013. Details of the same as follows:

44 Financial instruments

The Company’s risk management activities are subject to the management direction and control under
the framework of Risk Management Policy as approved by the Board of Directors of the Company. The
management ensures appropriate risk governance framework for the Company through appropriate policies
and procedures and that risks are identified, measured and managed in accordance with the Company’s
policies and risk objectives.

The Company is primarily exposed to risks resulting from fluctuation in credit risk , liquidity risk and market risk
as explained below:

A Disclosure in respect of financial risk management
1 Credit risk

Credit risk refers to the risk that a counterparty or customer will default on its contractual obligations
resulting in a financial loss to the Company. Financial instruments that are subject to credit risk principally
consists of investments, loans, trade receivables, cash and cash equivalents, bank balances other than
cash and cash equivalents and other financial assets.

Credit risk management:

Credit risk encompasses both, the direct risk of default and the risk of deterioration of creditworthiness
as well as concentration of risks. Credit risk is controlled by analysing credit limits and creditworthiness of
counter parties on continuous basis with appropriate approval mechanism for sanction of credit limits.

Credit risk from balances with banks, financial institutions and investments is managed by the Company’s
treasury team in accordance with the Company’s risk management policy. Cash and cash equivalents and
deposits are placed with banks having good reputation, good past track record and high quality credit rating.
Concentration of credit risk with respect to trade receivables are limited, due to the
Company’s customer base being large and diverse. Credit risk is managed through credit
approvals, establishing credit limits and continuously monitoring the creditworthiness of
customers to which the Company grants credit terms in the normal course of business.
The Company’s energy segment debtors are DISCOMs and have interest clause on delayed payments and
hence, they are secured from credit losses in the future. As per past experience, there has been no credit
loss for receivables from State Electricity Boards on account of customer’s inability to pay as the revenue
is power purchase agreement driven. Thus, the Company’s historical experience of collecting receivables,
supported by the level of default indicate a low credit risk and so trade receivables are considered to be a
single class of financial assets. The management has performed credit risk assessment on individual basis
for trade receivables. The Company has rebutted the presumption of credit risk of financial instruments
on initial recognition which are due for more than 30 days.

On the basis of the above assessment, the Company identified and written off an amount of I 15 lacs
(31 March 2025: I 3,996 lacs) of trade receivable balances. Refer note 36 for further details.

Other financial assets

Further, credit risk in respect of other financial assets, mainly comprise of security deposits, unbilled
revenue, subsidies receivable and other receivables etc. which are managed by the Company, by way of
assessing financial condition and current economic trends. The Company considers the probability of
default associated with the other financial asset is very low at the respective year end and thus would not
require any provision.”

2 Liquidity risk

Liquidity risk refers to the that the Company will encounter difficulty in meeting the obligations associated
with its financial liabilities. The Company’s objective is to provide financial resources to meet its obligations
when they are due in a timely, cost effective and reliable manner and to manage its capital structure.
The Company regularly monitors the rolling forecasts to ensure it has sufficient cash on an on-going
basis to meet operational needs. Any short term surplus cash generated, over and above the amount
required for working capital management and other operational requirements, is retained as cash and
cash equivalents (to the extent required) and any excess is invested in interest bearing term deposits,
liquid mutual fund investments and other short-term investments with appropriate maturities to optimise
the cash returns on investments while ensuring sufficient liquidity to meet its liabilities.

3 Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument may fluctuate because
of changes in market prices. The value of a financial instrument may change as a result of changes in
the interest rates, foreign currency exchange rates, equity price fluctuations, liquidity and other market
changes. Future specific market movements cannot be normally predicted with reasonable accuracy.
Market risk comprises of:

Ý Interest rate risk;

Ý Equity Price risk;

Ý Foreign currency exchange rate risk.

(i) Interest risk

Interest rate risk is the risk that the changes in market interest rates will lead to changes in fair value of
financial instruments or changes in interest income, expense and cash flows of the Company. The risks
arising from interest rate movements arise from short-term borrowings with variable interest rates. As at
year end, the Company has following financial liabilities which are subject to variable interest rates.

Sensitivity is calculated based on the assumption that amount outstanding as at reporting dates
(after considering repayments on actual basis).

(ii) Price risk

Equity/investment risk

Equity/investment risk is the risk that the fair value of a financial instrument will fluctuate due to changes
in market traded price. Equity / investment risk arises from financial assets such as investments which
are recognised at FVTPL. As at 31 March 2026, the carrying value of such investments is I 41,428 lacs
(31 March 2025- I 11,947 lacs). The details of such investments are given in Note 12.

I n case of fluctuation in market value of investments and all other variables were held constant, the
Company’s profit before tax and other equity would increase or decrease as follows:

(iii) Foreign currency risk

Foreign currency exchange rate risk is the risk that the fair value or future cash flows of an exposure will
fluctuate because of changes in foreign exchange rates. The Company’s exposure to the risk of changes
in foreign exchange rates relates primarily to the Company’s operating activities(export sales and trade
receivables). The Company is exposed to foreign exchange risk arising from foreign currency transactions,
primarily with respect to the USD, AED, AUD and EUR. The Company manages its foreign currency risk
by hedging transactions that are expected to realise in future and enters into various foreign exchange
hedging contracts such as forwards, options etc. to mitigate the risk arising out of foreign exchange rate
movement on foreign currency export receivables. As at reporting date, the Company has outstanding
forward contracts and options of USD 42.20 Mio, AUD 2.61 Mio & EUR 4.00 Mio (31 March 2025:
USD 47.75 Mio).

Disclosure on Financials instruments designated as hedging instrument in cashflow hedge

The Company has designated forward and options contracts as hedging instruments to hedge
foreign currency exchange risk arising on forecasted sales. Pursuant to this, the effective portion
of change in value of the hedging instruments has been recognised in ‘Cash flow hedge reserve’
in other comprehensive income. Such amount is reclassified to standalone statement of profit and
loss as and when the forecast transaction occurs or the hedges are no longer effective. Foreign
currency exchange risk arises from future commercial transactions and recognised assets and
liabilities denominated in a currency that is not the Company’s functional currency (I). The objective
of the hedges is to minimise the volatility of the I cash flows of highly probable forecast transactions.
The Company’s policy is to hedge all material foreign exchange risk associated with highly probable
forecast sales transactions denominated in foreign currencies. The Company’s policy is to hedge the risk
of changes in foreign currency. The Company designate both change in spot and forward element of
forward contracts to hedge exposure in foreign currency risk on highly probable forecast sales.

a) The management assessed fair values trade receivables, cash and cash equivalents, bank balances other
than cash and cash equivalents, loans, other financial assets, borrowings, lease liabilities, trade payables
and other financial liabilities approximate their respective carrying amounts largely due to the short-term
maturities of these instruments. Further, these instruments are valued at level 3 and their fair value are
considered to be same as their carrying value, as there is an immaterial change in the lending rate.

b) Investment in equity instrument in the subsidiary has been accounting at cost in accordance with Ind AS
27. Therefore, the same are not in the scope of Ind AS 109 and not disclosed here.

2 Fair value hierarchy

This section explains the judgements and estimates made in determining the fair value of financial instruments
that are (a) recognised and measured at fair value (b) measured at amortised cost and for which fair values
are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in
determining fair value, the Company has classified its financial instruments into the three level prescribed
under the accounting standard.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices, for example listed
equity instruments, traded bonds, commercial papers and mutual funds with quoted prices.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using
valuation techniques that maximise the use of observable market data and rely as little as possible on entity
specific estimates. If all significant inputs required to fair value an instrument are observable the instrument is
included in Level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is
included in Level 3. There are no transfers among levels 1, 2 and 3 during the year. The Company’s policy is to
recognise transfers into and transfers out of fair value hierarchy levels as at the end of the reporting period.

3 Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include the use of discount cash flows for
estimating fair value of loans to employees, security deposits and borrowings.

The fair value for loans and security deposits were calculated based on cash flow discounted using a current
lending rate. They are classified as Level 3 fair value in the fair value hierarchy due to the inclusion of
unobservable inputs, including own credit risk. The fair value of loans to employees and security deposits
approximates the carrying amount.

The fair value for borrowings was calculated based on cash flow discounted using a current borrowing rate.
They are classified as Level 3 fair value in the fair value hierarchy due to the inclusion of unobservable inputs,
including own credit risk. The fair value of borrowings approximates the carrying amount.

The fair valuation of investments in quoted equity shares is based on the current bid price of respective
investments as at the balance sheet date.

45 Segmental reporting
A Operating segments

Agri - Comprises of agricultural commodities such as rice, furfural, seed, bran, bran oil, etc.

Energy - Comprises of power generation from wind turbine, husk based power plant and solar power plant.

B Identification of segments

The chief operational decision maker monitors the operating results of its Business segment separately for the
purpose of making decision about resource allocation and performance assessment. Segment performance is
evaluated based on profit or loss and is measured consistently with profit or loss in the financial statements.
Operating segment have been identified on the basis of nature of products and other quantitative criteria
specified in the Ind AS 108.

C Segment revenue and results

The expenses and income which are not directly attributable to any business segment are shown as unallocable
expenditure .

D Segment assets and liabilities:

Assets used by the operating segments mainly comprise of property, plant and equipment, trade receivables,
cash and cash equivalents and inventories. Segment liabilities include trade payables and other liabilities.
Common assets and liabilities which cannot be allocated to any of the segments are shown as a part of
unallocable assets/liabilities.

1 Amounts are below rounding off thresholds adopted by the Company.

2 Provisions for contribution to gratuity and compensated absences are determined by the actuary on a overall basis at the end
of each year and, accordingly, have not been considered in the above information. The amount is only disclosed at the time of
payment.

3 All related party transactions are at arms length price and in the ordinary course of business.Outstanding balances at the year-
end are unsecured and interest free and settlement occurs in cash.

4 Refer note 3(I) for transactions related to property, plant and equipment with KMPs and their relatives.

5 The current borrowings of the Company are secured by the personal guarantee given by Mr. Anil Kumar Mittal, Mr. Anoop Kumar
Gupta and Mr. Arun Kumar Gupta and Mr. Ashish Mittal (relative of key managerial personnel) to the extent of the immovable
properties as specified in consortium agreement. Refer note 23A.

6 Reimbursement of expenses made to KMPs and their relatives are not disclosed as the same being of immaterial value.

7 The revenue from sales of goods to Khushi Ram Behari Lal disclosed at gross value. A discount of 154 lacs (31 March 2025: J 76
lacs) has also been provided related to sales of such goods.

8 Employee related payables, in addition to above, other benefits, perquisites, allowances, amenities and facilities are provided
according to permitted limits as approved by Board and shareholders respectively from time to time as per policy of the
Company.

9 Short term employee benefit paid to KMPs & relative of KMPs does not include perquisites paid to them.

1 Indirect taxes mainly comprise of matter relating to VAT, sales tax, customs duty, Goods and Services Tax pending at various
levels.

2 A portion of land parcel and building thereupon, situated at Dhuri, Punjab was attached by the Directorate of Enforcement (‘ED’)
to the extent of value of J 1,532 lacs in connection with an investigation which is currently pending before the Special Judge,
PMLA Court The Appellate Tribunal, PMLA (Government of India), New Delhi, followed by a confirming order of the Hon'ble High
Court of Delhi, restored the physical possession of the land parceis in favour of the Company for specified purposes against a
deposit of J 1,113 lacs, without prejudice to the rights and contentions of the parties to be decided in the appeal, On 4 March 2025,
the Hon'ble High Court of Delhi, directed the Tribunal to reconsider Company's plea and decide whether the said amount should
be refunded or not.

On 19 March 2025, the Appellate Tribunal directed the ED to refund J 1,113 lacs to the Company within eight weeks from the date
of receipt of the order. Accordingly, the Company had sought refund of the deposit of J 1,113 lacs lying with the ED. Pursuant to
directions of the Hon'ble Delhi High Court. the Appellate Tribunal considered and decided upon the refund of the said deposit.
The refund, in accordance with the order dated 19 March 2025, was received on 6 March 2026. However, the aforesaid attachment
shall continue until final adjudication by the Appellate Tribunal under the PMLA. The next hearing before the Appellate Tribunal
(PMLA) is scheduled for 8 July 2026

On 20 September 2025, the ED filed an application for seeking separation of trial which was allowed by the Hon'ble High Court
of Delhi and passed an order for separation of trial. The inspection of documents were completed on 7 February 2026 pertaining
to this matter and the arguments have been fixed for 6 June 2026 before the Ld. Additional Session Judge, PMLA Court.

The management based upon the legal assessments, is confident that it has a favourable case and the said attachment shall be
vacated and no adjustment is required in the standalone financial statements.

3 Directorate of Enforcement (‘ED’) registered an Enforcement Case Information Report (ECIR) in 2014 and subsequently filed a
criminal complaint in the year 2021 alleging commission of an offence under Section 3 of the PMLA, 2002 against the Company,
KRBL DMCC (a subsidiary of Company) and one of the Joint Managing Director (JMD) of the Company for certain transactions
assumed to be undertaken in the prior years. As per criminal complaint filed by the ED, it is alleged that M/s Rawasi Al Khaleej
General Trading LLC (‘RAKGT’) had received proceeds of crime of USD 24.62 million in AgustaWestland case during the period
2008-2010 which in turn had been transferred to the Company through KRBL DMCC. Based on the affidavit filed by Balsharaf
Group (one of the Customer of the Company) in the Hon'ble High Court of Delhi, the amount of USD 24.62 million had been
received by RAKGT in the account of Balsharaf Group. However, ED had attached 14,333,221 shares of Balsharaf Group held in
KRBL Limited.

The Company had appointed an independent professional firm (‘IP’) to review the aforesaid allegations and to assess
the impact, if any, on the financial statements of the Company in earlier years. Post review of the allegations, the IP had
issued a report to the Board of Directors which was discussed and approved in their previously held meeting, wherein the
Board of Directors had responded to the observations contained therein and basis that no further action was proposed.
The said case is pending before the Special Court and is listed on the given dates in its regular course. The proceedings are at the
initial stage of service of summons on the remaining unserved accused. While the outcome of any judicial proceeding is inherently
uncertain and incapable of precise prediction, the management considering the present facts, opinion from independent legal
counsel and other available information has not identified any adjustment or additional disclosure is required in the standalone
financial statements.

4 Other matter comprise of civil cases under CPC 1908, Trade Mark Act 1999, Consumer Protection Act 1986 and other disputes
with customers etc, pending at various levels.

*Based on the legal opinion, the Company is of the firm belief that the above demands are not tenable and highly unlikely to
be retained by higher authorities and is accordingly not carrying any provision in its books in respect of such demands. The
amounts disclosed are based on the orders/notices received from the authorities.

49 Disclosures pursuant to Regulation 34(3) of Securities and Exchange Board of India
(Listing Obligations And Disclosure Requirements) Regulations, 2015 and Section 186 of the
Companies Act, 2013

The Company has not provided any loans, security and corporate guarantees covered under section 186 of
the Companies Act, 2013 during the current financial year and accordingly, the disclosure requirements to the
extent does not apply to the Company. Refer note 7 for details of investment in subsidiaries and note 12 for
details of other investments.

50 Additional regulatory information required by Schedule III to the Companies Act, 2013

i. The Company has complied with the requirement with respect to number of layers as prescribed under
section 2(87) of the Companies Act, 2013 read with the Companies (Restriction on number of layers)
Rules, 2017.

ii. The Company does not have any charges or satisfaction of charges which is yet to be registered with
Registrar of Companies beyond the statutory period.

iii. The Company has not traded or invested in Crypto currency or virtual currency during the year.

iv. There is no income surrendered or disclosed as income during the year in tax assessments under the
Income-tax Act, 1961 (such as search or survey), that has not been recorded in the books of account.

v. The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including
foreign entities (‘Intermediaries’) with the understanding that the Intermediary shall:

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever
by or on behalf of the company (‘Ultimate Beneficiaries’) or

b. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

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

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 to or on behalf of the Ultimate Beneficiaries.

vii. Basis the management’s assessment, it has been concluded that the Company has made no transactions
with struck-off companies under Section 248 of the Companies Act, 2013 or section 560 of the Companies
Act, 1956. Further, there are no outstanding balances at balance sheet date with struck-off companies.

52 The Ministry of Corporate Affairs (MCA) has prescribed a requirement for companies under the proviso to Rule
3(1) of the Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules, 2021
requiring companies, which uses accounting software for maintaining its books of account, shall use only such
accounting software which has a feature of recording audit trail of each and every transaction, creating an
edit log of each change made in the books of account along with the date when such changes were made and
ensuring that the audit trail cannot be disabled.

Management has implemented logs at the application level to record audit trail (edit logs) of transactions
in accounting software and is operating effectively as at 31 March 2026. However, the audit trail (edit logs)
has not been implemented at the database level (database Oracle). Furthermore, other than consequential
impact of the exception given above, the audit trail has been preserved by the Company as per the statutory
requirements for record retention.

53 Transfer pricing

As per the international transfer pricing norms introduced in India with effect from 1 April 2001, the Company is
required to use certain specified methods in computing arm’s length price of international transactions between
the associated enterprises and maintain prescribed information and documents relating to such transactions.
The appropriate method to be adopted will depend on the nature of transactions/ class of transactions, class
of associated persons, functions performed and other factors, which have been prescribed. The Company is
in the process of conducting a transfer pricing study for the current financial year. However, in the opinion
of the management the same would not have a material impact on these standalone financial statements.
Accordingly, these standalone financial statements do not include any adjustments for the transfer pricing
implications, if any.

54 No subsequent event occurred post balance sheet date which requires adjustment in the standalone financial
statements for the year ended 31 March 2026.