(i) The Company has lease contracts for leasehold land, plant and equipment and also non factory building. Leasehold land is perpetual in nature except for few parcels of land which are depreciated over the lease tenure.

Lease of plant and equipment have lease terms of 9 to 10 years and may be extended for such duration and on such terms as the parties may mutually agreed.

Non factory building have lease term of 3 years and may be extended for such duration and on such terms as the parties may mutually agree.

Extension and termination options are included in leases contracts of the Company. These are used to maximise operational flexibility in terms of managing the assets used in the Company’s operations. The extension and termination options held are exercisable by both the Company and lessor.

(ii) Leasehold land includes depreciation Rs. 137.78 lacs (31^st March 2025: Rs. 137.78 lacs) on assets at Brajrajnagar unit, where manufacturing operations were not carried on during the year.

(II) The Company as a lessor Operating lease

The Company has leased out certain buildings on operating leases. The lease term is for 1-3 years and thereafter renewable. There is escalation clause in the lease agreements. The rent is not based on any contingencies.

There are no restrictions imposed by lease arrangements. The leases are cancellable. The Company has classified these leases as operating leases, because they do not transfer substantially all of the risks and rewards incidental to the ownership of the assets. Note No. 4 sets out information about the operating leases of investment property.

(b) Terms/ rights attached to equity shares

The Company has only one class of equity shares having a par value of Re. 1 per share. Accordingly, all equity shares rank equally with regard to dividends and shares in the Company’s residual assets on winding up. Each holder of equity shares is entitled to 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.

(a) Term loan of Rs. 2,250.00 lacs (31^st March 2025: Rs. 3,750.00 lacs) from a bank is secured by way of first pari-passu charge on entire fixed assets of Company at Amlai & Brajrajnagar and carries interest @ 7.80 % p.a. (31^st March 2025: @ 9.05%)and is repayable in 20 equal quarterly instalments starting from 31^st December 2022 up to 14^th September 2027.

(b) Term loan of Rs. Nil lacs (31^st March 2025: Rs. 1,750.00 lacs) from a bank is secured by way of first pari-passu charge on all movable and immovable fixed assets (including land and building) of the Company (present and future) located at Amlai, Madhya Pradesh and Brajrajnagar, Odisha and carries interest @ 8.91% p.a. (31^st March 2025: @ 8.91% ) and is repayable in 20 equal quarterly instalments starting from 26^th February 2022 up to 26^th November 2026. The same has been repaid in full during the year.

(c) Term loan of Rs. 3,750.00 lacs (31^st March 2025: Rs. 5,250.00 lacs) from a bank is secured by way of first pari-passu charge over the immovable fixed assets and movable fixed assets of the Company situated at Amlai, Madhya Pradesh (manufacturing unit) and at Brajrajnagar, Odisha and carries interest @ 8.80% p.a. (31^st March 2025: @ 9.40% ) and is repayable in 20 equal quarterly instalments starting from 19^th October 2023 up to 19^th July 2028.

(d) Term loan of Rs. 8,835.00 lacs (31^st March 2025: Rs. 4,000.00 lacs) from a bank is secured by way of first pari-passu charge over the immovable fixed assets and movable fixed assets of the Company situated at Amlai, Madhya Pradesh (manufacturing unit) and at Brajrajnagar, Odisha and carries interest @ 8.35% p.a. (31^st March 2025: @ 9.10%) and is repayable in 12 structured quarterly instalments starting from 31^th December 2025 to 30^th September 2028.

(e) Term loan of Rs. 6,305.80 lacs (31^st March 2025: Rs. 4,598.20 lacs) from a bank is secured by way of first pari-passu charge over the immovable fixed assets and movable fixed assets of the Company situated at Amlai, Madhya Pradesh (manufacturing unit) and at Brajrajnagar, Odisha and carries interest @ 7.40 % p.a. (31^st March 2025: @ 8.65% ) and is repayable in 20 equal quarterly instalments starting from 31^st March 2026 to 30^th September 2030.

(f) Cash credit / working capital demand loans Rs. 7,618.18 lacs (31^st March 2025: Rs. 9,975.82 lacs) from banks includes security against hypothecation of inventories, book debts and other current assets of the Company and second charge on fixed assets of the Company and are repayable on demand / at the end of the term of WCDL. The above loans carry interest @ 7.25 % p.a. to 10.80 % p.a. (31^st March 2025: 7.75% p.a. to 10.60% p.a. ).

(g) Short term loan of Rs. Nil lacs (31^st March 2025: Rs. 3,000.00 lacs) from a bank is unsecured carries interest @ 8.97 % to 9.09 % p.a. (31^st March 2025: 8.97% to 9.09%) repayable on 7^th May 2025 Rs. 2,000.00 lacs and on 28^th June 2025 Rs. 1,000.00 lacs.

(h) Short term loan of Rs. Nil lacs (31^st March 2025: Rs. 7,500.00 lacs) from a bank is unsecured carries interest @ 9% p.a. (31^st March 2025: 9%) and to be repaid in equal monthly instalment from the end of 9^th month to 12 month from the date of first disbursement starting from 29^th May 2025 to 27^th March 2026.

(i) Refer Note No. 40 for information about liquidity risk and market risk on borrowings.

The Company participates in a supplier finance arrangement under which its suppliers may elect to receive early payment of their invoices from a bank. Carrying amounts of financial liabilities subject to supplier finance arrangement presented with trade payables aggregates to Rs. 2,210.47 lacs. Out of which, financial liabilities for which suppliers have already received the payment from finance providers aggregates to Rs. 1,882.51 lacs. The Company includes the amounts subject to the arrangement within trade payables because the nature and function of these payables remain the same as those of other trade payables i.e., payments for the purchase of goods and services and they continue to be part of the normal operating cycle of the Company.

The Company had exercised the option permitted under Section 115BAA of the Income Tax Act, 1961 as introduced by the Taxation Laws (Amendment) Ordinance, 2019 during the year ended 31^st March, 2026. Accordingly, the Company had recognized current tax expense and remeasured its Deferred Tax Liabilities (net) basis the rate prescribed in the said section. Consequently, "Tax expenses” for the year ended 31^st March, 2026 includes a credit of Rs. 4,848.71 lacs and "Other Comprehensive Income” includes a charge of Rs. 525.91 lacs.

The applicable Indian statutory income tax rate for the year ended 31^st March 2026 was 25.168% and for the year ended 31^st March 2025 was 34.944%.

The fair value of unquoted equity securities designated as fair value through other comprehensive income is determined using Level 3 inputs like earnings, earning multiples etc. Significant unobservable inputs comprise long term growth rates, market conditions of the specific industry etc. However, the changes in the fair values due to changes in unobservable inputs will not be material to the financial statements.

Note 39: Capital management

The Company’s objectives when managing capital are to safeguard its ability to continue as a going concern, so that it can continue to provide returns for shareholders and benefits for other stakeholders and maintain an optimal capital structure to reduce the cost of capital, while protecting and strengthening the balance sheet through the appropriate balance of debt and equity funding.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return of capital to shareholders, issue new shares or sell assets to reduce debt.

The Company’s policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investors, creditors and market confidence and to sustain future development and growth of its business. The Company will take appropriate steps in order to maintain, or if necessary adjust, its capital structure. The Company is not subject to any externally imposed capital requirements. Management monitors the return on capital, as well as the level of dividends to ordinary shareholders.

Note 40: Financial risk management

The Company’s activities expose it to credit risk, liquidity risk and market risk (i.e. foreign currency risk, interest rate risk and price risk).

Risk management framework

The Company’s Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk management framework. The Board of Directors has established the Risk Management Committee, which is responsible for developing and monitoring the Company’s risk management policies. The Committee reports regularly to the board of directors on its activities. The Board of Directors also review these risks and related risk management policy.

The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

The Audit Committee oversees how management monitors compliance with the Company’s risk management policies and procedures and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The Audit Committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the audit committee.

This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the impact of it in the financial statements.

(A) Credit risk

The Company takes on exposure to credit risk, which is the risk that counterparty will default on its contractual obligations resulting in financial loss to the Company. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in Note No. 38. The Company is exposed to credit risk from its operating activities (primarily trade receivables).

(i) Trade and other receivables

Customer credit risk is managed by the Company through established policy and procedures and control relating to customer credit risk management. Trade receivables are non-interest bearing and are generally carrying up to 10 days credit terms. The Company has a detailed review mechanism of overdue customer receivables at various levels within organisation to ensure proper attention and focus for realisation. Trade receivables are consisting of a large number of customers. Where credit risk is high, domestic trade receivables are backed by security deposits. Export receivables are backed by letters of credit.

For Company’s exposure to credit risk for trade receivables refer Note No. 11.

(ii) Other financial assets and deposits

Credit risk from balances with banks, deposits, loan to employees, other financial assets etc. is managed by the Company’s finance department. Investments of surplus funds are made only with approved counterparties in accordance with the Company’s policy. None of the Company’s cash equivalents with banks, deposits, investments and other receivables were past due or impaired as at 31^st March 2026 and 31^st March 2025 (except as mentioned below).

The Company’s historical experience of collecting receivables and the level of default indicate that credit risk is low and generally uniform across markets. All overdue customer balances are evaluated taking into account the age of the dues, specific credit circumstances, the track record of the counterparty etc. The Company uses judgement in making these assumptions based on the Company’s past history, existing market condition as well as forward looking estimates at the end of each reporting period. The impairment provision as disclosed above are based on assumptions about risk of default and expected loss rates. Loss allowances and impairment is recognised, where considered appropriate by responsible management. Expected credit loss measured on loan to employees and other financial assets is not significant.

(B) Liquidity risk

Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach in managing liquidity is to ensure that it will have sufficient funds to meet its liabilities when due without incurring unacceptable losses. In doing this, management considers both normal and stressed conditions.

Management monitors rolling forecasts of the Company’s liquidity position and cash and cash equivalents on the basis of expected cash flows. This is generally performed in accordance with practice and limits set by the Company.

Maturities of financial liabilities

The tables below analyse the Company’s financial liabilities into relevant maturity groupings based on their contractual maturities.

(C) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest risk and other price risk, such as commodity price risk and securities price risk. Financial instruments affected by market risk include borrowings, investments, trade payables, trade receivables, etc.

(i) Foreign currency risk

The Company deals with foreign trade payables, trade receivables etc. and is therefore exposed to foreign exchange risk associated with exchange rate movement.

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s operating activities. Such foreign currency exposures are not hedged by the

(ii) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s debt obligations with floating interest rates.

The Company’s main interest rate risk arises from borrowings with variable rates, which expose the Company to cash flow interest rate risk. During 31^st March 2026 and 31^st March 2025, the Company’s borrowings at variable rate were mainly denominated in Rupees.

The Company’s fixed rate borrowings and deposits with banks are carried at amortised cost. They are therefore not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

(iii) Securities price risk

Securities price risk is the risk that the fair value of a financial instrument will fluctuate due to changes in market prices. The Company’s exposure to securities price risk arises from investments in equity instruments held by the Company and classified in the balance sheet at fair value through other comprehensive income. To manage its price risk arising from investments in equity securities, the Company does regular monitoring of security prices.

(iv) Commodities price risk

The Company has in place policies to manage the Company’s exposure to fluctuation in the prices of the key materials and commodities used in the operations. Nevertheless, it believes that it has competitive advantage in terms of quality products and by continually upgrading its expertise and range of products to meet the needs of its customers. Commodities price risk exposure is evaluated and managed through operating procedures and sourcing policies. The management does not consider the Company’s exposure to commodities price risk significant as on 31^st March 2026.

B. Measurement of fair values

This section explains the judgements and estimates made in determining the fair values of the biological assets other than bearer plants that are recognised and measured at fair value in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its biological assets other than bearer plants into level 2 and level 3 in the fair value hierarchy, since no significant adjustments need to be made to the prices obtained from the local markets.

Note 45: Employee benefits

(i) Compensated absences

The Company provides for accumulation of leave by certain categories of its employees. These employees can carry forward a portion of the unutilised leave balances and utilise it in future periods or receive cash in lieu thereof as per the Company’s policy. The Company records a provision for leave obligations in the period in which the employees render the services that increases this entitlement.

The total provision recorded by the Company towards this obligation was Rs. 831.90 lacs (31^st March 2025: Rs. 588.10 lacs). The amount of the provision is presented as current, since the Company does not have an unconditional right to defer settlement for any of these obligations.

(ii) Post-employment defined benefit plan Gratuity

The Company provides for gratuity, a defined benefit retirement plan covering eligible employees. Every employee is entitled to a benefit equivalent to fifteen days salary last drawn for each completed year of service on terms not less favourable than the provisions of the Payment of Gratuity Act, 1972. The same is payable at the time of separation from the Company or retirement, whichever is earlier. The benefits vest after five years of continuous service. The gratuity plan is administered and managed by the Trustees who are responsible for the overall governance of the plan and to act in accordance with the provisions of the trust deeds and rules in the best interests of the plan participants.

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions, the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit obligation recognised in the Balance Sheet. Also, there is no significant impact of withdrawal rates and hence not considered for sensitivity.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

(g) The major categories of plan assets

The defined benefit plans are funded with insurance companies of India.

(h) Defined benefit liability and employer contributions

Expected contributions to post-employment benefit plans in the next twelve months are Rs 200.00 lacs (31^st March 2025 - Rs. 200.00 lacs).

(i) Risk exposure

Through its defined benefit plans the Company is exposed to a number of risks, the most significant of which are detailed below:

Investment risk:

The defined benefit plans are funded with insurance companies of India. The Company does not have any liberty to manage the funds provided to insurance companies. The present value of the defined benefit plan liability is calculated using a discount rate determined by reference to the Government of India bonds. If the return on plan asset is below this rate, it will create a plan deficit.

Discount rate risk:

The Company is exposed to the risk of fall in discount rate. A fall in discount rate will eventually increase the ultimate cost of providing the above benefit thereby increasing the value of the liability.

Demographic risk:

In the valuation of the liability, certain demographic (mortality and attrition rates) assumptions are made. The Company is exposed to this risk to the extent of actual experience eventually being worse compared to the assumptions thereby causing an increase in the benefit cost.

Salary growth risk

The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. An increase in the salary of the plan participants will increase the plan liability.

(iv) Provident fund

(a) Provident fund for certain eligible employees is managed by the Company through the “Birla Industries Provident Fund”, in line with the Provident Fund and Miscellaneous Provisions Act, 1952. The plan guarantees interest at the rate notified by the Provident Fund Authorities. The contribution by the employer and employee together with the interest accumulated thereon are payable to employees at the time of their separation from the Company or retirement, whichever is earlier. The benefits vest immediately on rendering of the services by the employee.

The Company has an obligation to fund any shortfall on the yield of the trust’s investments over the administered interest rates on an annual basis. Actual return earned by the Company has been higher in the past years. The actuary has provided a valuation for provident fund liabilities on the basis of guidance issued by Actuarial Society of India and there is no shortfall as at year-end. Return on plan asset and discount rate, as considered by the actuary, were 8.25 % (31^st March 2025: 8.15%) and 6.50 % (31^st March 2025: 6.60%) respectively.

(v) Superannuation fund

The Company operates a superannuation fund scheme with Life Insurance Corporation of India (LIC) for eligible employees for some of its employees towards which the Company contributes up to a maximum of 15% of the employees’ basic salary, which is charged to the Statement of Profit and Loss.

The Company contributed Rs. 7.14 lacs and Rs. 9.51 lacs during the year ended 31^st March 2026 and 31^st March 2025 respectively towards above defined contribution plan of the Company.

(*) Based on discussions with the solicitors / favourable decisions in similar cases/legal opinions taken by the Company, the Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed as contingent liabilities where applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a materially adverse effect on its financial statements. The company does not expect the impact, if any, to be material.

b) Outstanding claims from employees not acknowledged as debts, including Bonus . , ,

Amount unascertainable

claims under adjudication and wages for suspension period at Brajrajnagar Unit.

c) In October 1963, the paper division of the Company had applied to the Public Work Department (Irrigation) of the Madhya Pradesh State Government for drawing water without any charge from Sone River up to 1165 Million Cubic Feet (MCF) with the provision for increase up to 2500 MCF on full development of paper mill, the permission for which was granted by the State Government. In August 2000, the Madhya Pradesh State Government issued a notification and decided to levy charges on water consumption from river resources for industrial purposes with retrospective effect from June, 1998, the constitutional validity of which was challenged by the Company by way of a writ petition in the High Court of Madhya Pradesh. During the pendency of the said writ petition, the Water Resource Department (WRD) of the State Government started raising the bill for consumption of water on the basis of assumption of total quantum of water allowed to be drawn by the Company at 2500 MCF whereas, as per the Company, the quantum of water allowed to be drawn was 1165 MCF and the Company had never drawn the water even up to the initial quantity of 1165 MCF since it had not attained full development of the paper mill. One of the major reasons for not being able to achieve full development was frequent and perennial shortage of water. Based on an interim order passed by the Madhya Pradesh High Court in the aforesaid writ petition, the Company started paying water charges based on actual consumption of water (less than 1165 MCF), while the WRD of the State Government continued to raise bills on the

basis of assumed consumption of 2500 MCF plus interest and penalty thereon. In January 2009, the High Court of Madhya Pradesh upheld the constitutional validity of August 2000 notification. After the aforesaid judgement, the Company paid Rs. 908.47 lacs being the difference amount between the assumed quantity of 1165 MCF and the actual consumption, while the WRD of the State Government continued to raise the bills on the basis of assumed quantity of water consumption of 2500 MCF till April 2009, when the Company entered into a new agreement with the WRD of the State Government for water consumption of only 440 MCF effective from May 2009. The total balance demand for the aforesaid period amounts to Rs. 2,91,255.28 lacs (31^st March 2025: Rs. 2,42,772.67 lacs) [including interest and penalty of Rs. 2,89,841.73 lacs (31^st March 2025: Rs. 2,41,359.12 lacs)] as at 31^st March 2026, for which no provision has been made in the books. The WRD of the State Government issued a notice for recovery of aforesaid demand in February 2015, against which the Company filed a writ petition in the Madhya Pradesh High Court and obtained an interim stay on the recovery. Also, Madhya Pradesh High Court has set aside demand for penal interest in a similar case for another Company.

On 11 July 2020, the WRD has given a letter asking for consent on their offer of one-time settlement at Rs. 7,915 lacs and withdrawal of Writ petition from the High Court for which the Company has not given any consent. The Company has been legally advised that it has a fit case for quashing the present demand.

d) (i) The Company’s Paper plant and Caustic Soda plant at Amlai were having individual factory license till 2011. The Company had applied for common factory license for both the plants enabling to supply Power to Caustic Soda plant from Paper plant. Simultaneously, it had filed a petition with Madhya Pradesh Electricity Regulatory Commission (MPERC) for direction on the action if common factory license was granted. On 11^th May, 2012 the MPERC has directed Company to keep any one connection and surrender the other one. Accordingly, the Company had surrendered its Paper plant connection keeping the Caustic Soda plant connection. However, the Madhya Pradesh Poorv Khestra Vidyut Vitran Company Limited (MPPKVVCL) has interpreted the order otherwise and had considered the connection which was retained by Company as unauthorized one. They had issued final order dated 16^th June 2012 under Section 126 (3) of Electricity Act 2003 levying Rs. 1,287 lacs as electricity charges from 17^th April 2012 (Date of issuance of Common Factory license) applying penal rate. The Company had filed an application with MPERC for clarification on direction dated 11^th May 2012. The MPERC vide its order dated 4^th August 2012 held that it has given option to the Company to keep any one of the two connection surrendering the second one. They had written in their Order that the order of the MPERC dated 11^th May 2012 has been completely mis construed by the MPPKVVCL and by a convoluted logic raised claim of unauthorized use of electricity. They had directed respondent to regularize the connection per Company’s application and submit compliance within a month. The MPPKVVCL has signed a supplementary HT agreement dated 9^th November 2012 effective from 17^th April 2012 regularizing the connections as per direction of the Commission. However, the Company has filed an appeal with Appellate Authority District Shahdol for quashing the order dated 16^th June 2012 of MPPKVVCL citing (i) Clarification order of MPERC dated 4^th August 2012 and (ii) subsequently regularization of connection by MPPKVVCL by signing supplementary HT Agreement.

(ii) Similarly, on 21^st December 2011, a vigilance team of MPPKVVCL visited its Paper plant at Amlai for inspection of the usages of Power supplied by them. During their visit, they had observed that Company was erecting a captive Power plant and operating from time to time water pumps for drawing water from river Sone for its factory use. They had considered these uses as unauthorized load of 850 KvA from Power supplied by MPPKVVCL and issued a final order dated 21^st August 2012 assessing a demand of Rs. 155 lacs. The Company had filed an appeal against this order with the Appellate Authority District Shahdol for quashing the order citing that (i) it is used for production of Paper for which connection was granted, (ii) that the power used for the alleged activity is from its own power generating plant.

However, the Appellate authority has decided both the cases against the Company vide its orders dated 29^th November 2019 and the Company has received demand letter No. AA/SS/06/HT/1368 dated ‘9^th December 2019 demanding Rs. 2,172 lacs against order in case No. 02/12-13 and Rs. 235 lacs against order in case No. 03/12-13 for unauthorized use of power making total demand of Rs. 2,407 lacs.

The Company has filed an appeal in MP High Court against both the orders vide WP No. 28342/2019 and WP No. 28354/2019 and requested for relief against the demand. The Hon’ble MP High Court vide its order dated 21^st January 2020 had passed an interim order in favour of the Company thereby restraining the respondents from taking any further coercive action against the Company. Matters are still at the stage of completion of pleadings

because the respondents have not yet submitted any replies or affidavits in the case. Further, the Company has been legally advised by its lawyer that these cases are fit cases for quashing the present demand, therefore, has not provided any liability in its books of accounts.

e) The Company has received orders for resumption of certain leasehold land by the State Government. The same was challenged by the Company via a Writ Petition made in the High Court of Orissa, Cuttack for which it has received stay order against the State Government. Based on legal advice, the Company does not expect the outcome of these proceedings to have a material effect on its financial statements.

f) In respect of above contingent liabilities, it is not practicable for the Company to estimate the timings of cash outflows, if any, pending resolution of the respective proceedings. The Company does not expect any reimbursements in respect of above.

Expense arising from share based payment transactions

Total expenses / (reversal of expenses) arising from share-based payment transactions recognised in Statement of Profit and Loss as part of employee benefit expenses is Rs. 15.72 lacs. (31^st March 2025: Rs.(-) 5.68 lacs) Refer Note No. 32.

Note 53:

No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the funding party ("Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

Note 54:

On 21^st November, 2025, the Government of India notified the four 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 Ministry of Labour & Employment published draft Central Rules and FAQs to enable assessment of the financial impact due to changes in regulations. The Company has assessed and disclosed the incremental impact of these changes aggregating to Rs. 376.74 lacs under "Employee benefits expenses” in the Statement of Profit and Loss for the year ended 31^st March, 2026. The Company continues to monitor further developments, including the finalisation of Central/State Rules and clarifications from the Government on other aspects of the Labour Code and would provide appropriate accounting effect on the basis of such developments as necessary.