viii) Provisions and Contingent Liabilities

A provision is recognized if, as a result of a past event, the
Company has a present legal or constructive obligation
that can be estimated reliably, and it is probable that an
outflow of economic benefits will be required to settle the
obligation. Provisions are determined by discounting the
expected future cash flows at a pre-tax rate that reflects
current market assumptions of the time value of money
and the risks specific to the liability. The unwinding of
discount is recognized as finance cost.

The amount recognized as a provision is the best estimate
of the consideration required to settle the present
obligation at reporting date, taking into account the risks
and uncertainties surrounding the obligation.

When some or all of the economic benefits required to
settle a provision are expected to be recovered from a
third party, the 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.

Contingent liabilities are possible obligations that arise
from past events and whose existence will only be
confirmed by the occurrence or non-occurrence of one
or more future events not wholly within the control of
the Company. Where it is not probable that an outflow
of economic benefits will be required, or the amount
cannot be estimated reliably, the obligation is disclosed
as a contingent liability, unless the probability of outflow
of economic benefits is remote.

ix) Leases

As a lessee

The Company's leases primarily consist of leases of
office premises, warehouses and guest houses. The
Company assesses whether a contract contains a lease,
at inception of a contract. A contract is, or contains, a
lease if the contract conveys the right to control the use
of an identified asset for a period of time in exchange
for consideration.

At the date of commencement of the lease, the Company
recognizes a ROU assets and a corresponding lease liability
for all lease arrangements in which it is a lessee, except for
leases with a term of twelve months or less (short-term
leases) and low value leases. For these short-term and /
or low value leases, the Company recognises the lease
payments as an operating expense on a straight-line basis

over the term of the lease. Certain lease arrangements
includes the options to extend or terminate the lease
before the end of the lease term. ROU assets and lease
liabilities includes these options when it is reasonably
certain that they will be exercised.

The ROU assets are initially recognized at cost, which
comprises the initial amount of the lease liability
adjusted for any lease payments made at or prior to the
commencement date of the lease plus any initial direct
costs less any lease incentives. They are subsequently
measured at cost less accumulated depreciation and
impairment losses. Currently, ROU assets are being
amortised over a period of 3-5 years based on lease term
being lower of lease term and estimated useful life of
underlying assets.

Lease liability and ROU asset have been separately
presented in the Balance Sheet and lease payments have
been classified as financing activities in statement of
cash flows.

As a lessor

Lease income from operating leases where the Company
is a lessor is recognised in income on a straight-line basis
over the lease term unless the receipts are structured
to increase in line with expected general inflation to
compensate for the expected inflationary cost increases.

x) Borrowings

Borrowings are initially recognised at fair value (net of
transaction costs incurred). Any difference between the
proceeds (net of transaction costs) and the redemption
amount is recognized in Statement of profit and loss over
the period of the borrowings using the effective interest
rate method. Subsequently all borrowings are measured
at amortised cost using the effective interest rate method.

Borrowings are derecognized from the balance sheet
when the obligation specified in the contract is discharged,
cancelled or expired. The difference between the carrying
amount of a financial liability that has been extinguished
or transferred to another party and the consideration
paid, including any non-cash assets transferred or
liabilities assumed, is recognised in statement of profit
and loss. The gain / loss is recognised in other equity in
case of transaction with shareholders

Borrowing costs

General and specific borrowing costs directly attributable
to the acquisition, construction or production of qualifying
assets, which are assets that necessarily take a substantial
period of time to get ready for their intended use, are
added to the cost of those assets, until such time the
assets are substantially ready for their intended use. All
other borrowing costs are recognised as an expense in
statement of Profit and Loss in the period in which they
are incurred.

xi) Revenue Recognition

Revenue comprises revenue from contracts with customers
for sale of goods. Revenue from sale of goods is inclusive
of excise duties and is net of returns, trade allowances,
rebates, value added taxes, Goods and Services Tax (GST)
and such amounts collected on behalf of third parties.

Revenue is recognized on satisfaction of performance
obligation upon transfer of control of promised products
or services to customers, at an amount that reflects the
consideration expected to be received by the Company
in exchange for those products or services, as below:

a) Revenue from sale of products:

Revenue is recognised at transaction price on
transfer of control, being on dispatch of goods or
upon delivery to customer, in accordance with the
terms of sale.

b) Income from Royalty and Contract
manufacturing

I ncome from royalties and contract manufacturing
are recognised on an accrual basis in accordance
with the substance of relevant agreement.

c) Revenue from manufacture and sale of
products from tie-up manufacturing
arrangements:

The Company has entered into arrangements with
Tie-up Manufacturing Units (TMUs), wherein TMUs
manufacture and sell beverage alcohol on behalf
of the Company. Under such arrangements, the
Company has exposure to significant risks and
rewards associated with the sale of products
i.e. it has the primary responsibility for providing
goods to the customer, has pricing latitude and
is also exposed to inventory and credit risks.
Accordingly, the transactions of the TMUs under
such arrangements have been recorded as gross

revenue, excise duty and expenses as if they were
transactions of the Company, The Company also
presents inventory under such arrangements as its
own inventory, The net receivables from / payable
to TMUs are recognised under other financial assets
/ other financial liabilities respectively,

d) Interest

I nterest income is recognized using the effective
interest rate method, The effective interest rate
is the rate that discounts estimated future cash
receipts through the expected life of the financial
asset to the gross carrying amount of the financial
asset, Interest income is included under the head
"Other income" in the statement of profit and loss,

e) Dividend

Dividend income is recognized when the Company's
right to receive the payment is established, which
is generally when the shareholders approve
the dividend,

xii) Government grants

Government grants are recognised where there is
reasonable assurance that the grant will be received and
all attached conditions will be complied with, When the
grant relates to revenue, it is recognised in the statement
of profit and loss on a systematic basis over the periods
to which they relate, When the grant relates to an asset,
it is treated as deferred income and recognised in the
statement of profit and loss on a systematic basis over
the useful life of the asset,

xiii) Income tax

Income tax expense comprises current tax expenses and
net change in the deferred tax assets or liabilities during
the period, Current and deferred taxes are recognised
in the Statement of profit and loss, except when they
relate to item that are recognised in other comprehensive
income or directly in equity, in which case, the current and
deferred tax are also recognised in other comprehensive
income or directly in equity respectively,

a) Current tax

Current tax comprises the expected tax payable or
receivable on the taxable income or loss for the year
and any adjustment to the tax payable or receivable
in respect of previous years, The amount of current
tax reflects the best estimate of the tax amount

expected to be paid or received after considering
the uncertainty, if any related to income taxes, It is
measured using tax rates (and tax laws) enacted or
substantively enacted by the reporting date,

Current tax assets and current tax liabilities are
offset only if there is a legally enforceable right to
set off the recognised amounts, and it is intended
to realise the asset and settle the liability on a net
basis or simultaneously,

b) Deferred tax

Deferred tax is recognised in respect of temporary
differences between the carrying amounts of assets
and liabilities for financial reporting purposes and the
corresponding amounts used for taxation purposes,
Deferred tax is also recognised in respect of carried
forward tax losses and tax credits, Deferred tax
assets are recognised to the extent that it is probable
that future taxable profits will be available against
which they can be used,

Deferred tax assets are recognised to the extent
that it is probable that future taxable profits will be
available against which they can be used,

Deferred tax assets recognised or unrecognised are
reviewed at each reporting date and are recognised
/ reduced to the extent that it is probable / no longer
probable respectively that the related tax benefit will
be realised,

Deferred tax is measured at the tax rates that are
expected to apply to the period when the asset is
realised or the liability is settled, based on the laws
that have been enacted or substantively enacted by
the reporting date,

The measurement of deferred tax reflects the tax
consequences that would follow from the manner in
which the Company expects, at the reporting date,
to recover or settle the carrying amount of its assets
and liabilities,

The Company offsets the current tax assets and
liabilities (on a year on year basis) and deferred
tax assets and liabilities, where it has a legally
enforceable right and where it intends to settle such
assets and liabilities on a net basis,

xiv) Earnings per share

The Company presents basic and diluted earnings
per share (EPS) data for its ordinary shares, Basic EPS
is calculated by dividing the profit or loss after tax
attributable to ordinary shareholders of the Company
by the weighted average number of ordinary shares
outstanding during the period, Diluted EPS is determined
by adjusting the profit or loss after tax attributable to
ordinary shareholders and the weighted average number
of ordinary shares outstanding after adjusting for the
effects of all potential dilutive ordinary shares,

xv) Statement of Cash flow

Cash flows are reported using the indirect method,
whereby profit / (loss) for the period is adjusted for the
effects of transactions of a non-cash nature, any deferrals
or accruals of past or future operating cash receipts or
payments and item of income or expenses associated
with investing or financing cash flows, The cash flows
from operating, investing and financing activities of the
Company are segregated, Cash and cash equivalents are
cash, balances with bank and short-term (three months or
less from the date of placement), highly liquid investments
that are readily convertible into cash and which are
subject to an insignificant risk of changes in value,

Amendment to Ind AS 7

Effective April 1, 2017, the Company adopted the
amendment to Ind AS 7, which require the entities
to provide disclosures that enable users of financial
statements to evaluate changes in liabilities arising from
financing activities, including both changes arising from
cash flows and non-cash changes, suggesting inclusion
of a reconciliation between the opening and closing
balances in the Balance Sheet for liabilities arising from
financing activities, to meet the disclosure requirement,
The adoption of amendment did not have any material
impact on the financial statements,

xvi) Share based payments

The cost of equity-settled transactions is determined by
the fair value at the date when the grant is made using
an appropriate valuation model, That cost is recognised,
together with a corresponding increase in share-based
payment (SBP) reserves in equity, over the period in
which the performance and /or service conditions are
fulfilled in employee benefits expense, The dilutive effect
of outstanding options is reflected as additional share
dilution in the computation of diluted earnings per share,

xvii) Financial instruments

a) Recognition and initial measurement

The Company initially recognises financial assets
and financial liabilities when it becomes a party to
the contractual provisions of the instrument, All
financial assets and liabilities are measured at fair
value on initial recognition, Transaction costs that
are directly attributable to the acquisition or issue
of financial assets and financial liabilities that are
not at fair value through profit or loss are added
to the fair value on initial recognition, Regular way
purchase and sale of financial assets are accounted
for at trade date,

b) Classification and subsequent measurement
Financial assets

Financial assets carried at amortised cost

A financial asset is subsequently measured at
amortised cost if it is held within a business model
whose objective is to hold the asset in order to collect
contractual cash flows and the contractual terms of
the financial asset give rise on specified dates to
cash flows that are solely payments of principal and
interest on the principal amount outstanding,

Financial assets at fair value through other
comprehensive income

A financial asset is subsequently measured at fair
value through other comprehensive income if it is
held within a business model whose objective is
achieved by both collecting contractual cash flows
and selling financial assets and the contractual terms
of the financial asset give rise on specified dates to
cash flows that are solely payments of principal and
interest on the principal amount outstanding,

Movements in the carrying amount are taken through
OCI, except for the recognition of impairment gains
or losses, interest revenue and foreign exchange
gains and losses which are recognised in the
Statement of Profit and Loss,

Financial assets at fair value through profit
or loss

A financial asset which is not classified in any of
the above categories are subsequently fair valued
through profit or loss,

Investment in subsidiary and associate
companies

The Company has elected to recognize its
investments in subsidiary and associate companies
at cost in accordance with the option available in Ind
AS 27, 'Separate Financial Statements'. The details
of such investments are given in Note 3. Where
an indication of impairment exists, the carrying
amount of the investment is assessed and written
down immediately to its recoverable amount. The
recoverable amount is the higher of an asset's fair
value less costs of disposal and value in use. On
disposal of investments in subsidiary and associates
the difference between net disposal proceeds
and the carrying amounts are recognised in the
Statement of profit and loss.

Financial liabilities

Financial liabilities are subsequently carried at
amortised cost using the effective interest method.
For trade and other payables maturing within one
year from the balance sheet date, the carrying
amounts approximate fair value due to the short
maturity of these instruments.

In case, the fair value of a financial asset or financial
liability, at initial recognition, differs from the
transaction price, the difference between the fair
value at initial recognition and the transaction price -

(i) is recognised as a gain or loss if that fair value
is evidenced by a quoted price in an active
market for an identical asset or liability (i.e. a
Level 1 input) or based on a valuation.

(ii) is deferred and is recognised as a gain or loss only
to the extent that it arises from a change in a
factor (including time) that market participants
would take into account when pricing the
asset or liability. The unamortised portion of
the deferred fair value gain / loss difference
as on reporting date, is disclosed under other
current / non-current assets / liabilities as the
case may be.

c) Derecognition
Financial assets

The Company derecognises a financial asset when
the contractual rights to the cash flows from the
financial asset expire, or it transfers the right to
receive the contractual cash flows in a transaction

in which substantially all of the risks and rewards
of ownership of the financial assets are transferred
or in which the Company neither transfers nor
retains substantially all of the risks and rewards
of ownership and does not retain control of the
financial asset.

I f the Company enters into transactions whereby it
transfers assets recognised on its balance sheet but
retains either all or substantially all of the risks and
rewards of the transferred assets, the transferred
assets are not derecognised.

If the Company neither transfers nor retains
substantially all the risks and rewards of ownership
and continues to control the transferred asset,
the Company recognizes its retained interest in
the assets 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 recognise the financial asset and
also recognises a collateralised borrowing for the
proceeds received.

Financial liabilities

The Company derecognises a financial liability
when its contractual obligations are discharged or
cancelled or expired.

The Company also derecognises a financial liability
when its terms are modified and the cash flows
under the modified terms are substantially different.
In this case, a new financial liability based on the
modified terms is recognised at fair value. The
difference between the carrying amount of the
financial liability extinguished and a new financial
liability with modified terms is recognised in the
statement of profit and loss.

d) Impairment of Financial Assets

The Company assesses impairment based on
expected credit losses (ECL) model at an amount
equal to:-

• 12 months expected credit losses, or

• Lifetime expected credit losses

depending upon whether there has been a
significant increase in credit risk since initial
recognition. However, for trade receivables, the
company does not track the changes in credit risk.

Rather, it recognizes impairment loss allowance
based on lifetime ECLs at each reporting date, right
from its initial recognition.

e) Offsetting

Financial assets and financial liabilities are offset
and the net amount presented in the balance sheet
when, and only when, the Company currently has a
legally enforceable right to set off the amounts and it
intends either to settle them on a net basis or realise
the asset and settle the liability simultaneously.

xviii) Exceptional items

When an item of income or expense within Statement of
profit and loss from ordinary activity is of such size, nature
or incidence that its disclosure is relevant to explain more
meaningfully the performance of the Company for the
period, the nature and amount of such items is disclosed
as exceptional items.

xix) Recent amendments to Indian Accounting
Standards:

The Ministry of Corporate Affairs vide notification dated
7 May 2025 and 13 August 2025 notified the Companies
(Indian Accounting Standards) Amendment Rules, 2025
and Companies (Indian Accounting Standards) Second
Amendment Rules, 2025, respectively, which amended
certain accounting standards (see below), and are
effective for annual reporting periods beginning on or
after 1 April 2025:

(a) Ind AS 1 - Presentation of Financial
Statements

Clarifications on classification of liabilities as current
or non-current, including the impact of loan
covenants and rights to defer settlement. Based
on the company's assessment, the company has
no impact of these amendments in its classification
criteria of current and non-current liabilities.

(b) Supplier Finance Arrangements

The amendment in Ind AS 7 requires to inform users
of financial statements of the existence of supplier
finance arrangements and explain the nature of the
arrangements, the carrying amount of liabilities and

the range of payment due dates. Ind AS 107 has
been amended to add supplier finance arrangements
as a factor that may cause concentration of liquidity
risk. The Company has reviewed the amendment
and based on its evaluation has determined that it
does not have any impact in its financial statements.

(c) International Tax Reform - Pillar Two Model
Rules - Amendments to Ind AS 12

The Ministry of Corporate Affairs (MCA) has
notified amendments to Ind AS 12, Income Taxes,
to incorporate the OECD Pillar Two Model Rules.
These amendments introduce specific disclosure
requirements for entities that may be subject to
Pillar Two income tax. Pillar Two legislation has
not yet been enacted in India, where the company
is headquartered. Accordingly, no adjustments
have been made to these financial statements in
respect of Pillar Two income taxes. The Company
will continue to monitor developments in India and
other jurisdictions in which it operates, and will
evaluate the impact of such legislation as and when
it becomes applicable.

(d) Lack of Exchangeability -

Amendments to Ind AS 21 The amended Ind AS
21 have added requirements to help entities to
determine whether a currency is exchangeable into
another currency, and the spot exchange rate to use
where it is not. These amendments did not have any
material impact on the amounts recognised in prior
periods and are not expected to significantly affect
the current or future periods.

xx) New and amended standards not yet effective

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. During the year ended March
31, 2026, MCA has not notified any other new standards
or amendments to the existing standards applicable to
the company.

7.1 Amounts recognised in the Statement of Profit and Loss:

a) Provision for non-moving and obsolete inventories for the year amounting to ' 185.64 lacs (P.Y ' 201.61 lacs) has been
recognised as an expense during the year and is included in Other Expenses in the Statement of Profit and Loss.

b) The Company has written off the non-moving and obsolete inventories during the year amounted to ' Nil ( P.Y. ' 158.46

lacs). Conseguent to the earlier years provision for non-moving obsolete inventories provided in the financial statements,
the net impact of the aforesaid write offs on the financial statements for FY 2025-26 is Nil ( P.Y. Nil)

c) I nventory of Raw Material includes goods in transit of Concentrated Alcoholic Beverages ( CAB) of ' 4,354.72 lacs

( P.Y. NIL).

Footnotes:

a} The amount received in excess of face value of the equity shares is recognised in Securities Premium. in case of equity-settled share based
payment transactions, the difference between fair value on grant date and nominal value of share is accounted as securities premium. it is
utilised in accordance with the provisions of section 52 of the Companies Act,2013.

b) The general reserve represents amounts appropriated out of retained earnings based on the provisions of the Act prior to its amendment.

c) The fair value of the equity-settled share based payment transactions with employees is recognised in Statement of Profit and Loss with
corresponding credit to Employee Stock Grants Outstanding Account.

The expenses in respect of the Company's ESOP scheme will be charged against the Reserve for employee compensation expense as per
Scheme.

d) Money received against Share Warrants represents amount equivalent to 25% of the Warrant issue Price paid at the time of subscription of
each Warrant.

e) Retained earnings are the profits that Company has earned till date less transfers to general reserve dividends or other distributions paid to
shareholders. Retained earnings includes re-measurement loss / (gain) on defined benefit plans (net of taxes) that will not be reclassified to
the Statement of Profit and Loss. Retained earnings is a free reserve available to the Company.

f) This reserve represents the cumulative gains and losses arising on the revaluation of equity instruments measured at fair value through other
comprehensive income, net of amounts reclassified to retained earnings when those assets have been disposed off.

Borrowing Note

FY 2025-26

Term Loan from Banks and Financial Institutions

The Company has availed Term Loans aggregating to ' 2,10,000 lacs from Banks and Financial institutions for the acquisition

of the imperial Blue Business Division.

a) The Term Loans are secured by a first pari passu charge over all the Company's tangible and intangible assets and
current assets, both present and future.

b) The Term Loans are repayable over a period of six years of which the first two years have a principal moratorium
followed by sixteen structured quarterly instalments

c) Post-moratorium, the term loans have a balloon repayment structure, with 65% of the principal repayment to be made
in the sixth year.

d) interest is payable on a monthly basis from the date of disbursement. The effective interest rate on the term loans is
10% to 11% per annum

Cash Credit (including Working Capital Demand Loan)

a) During the financial year 2025-26, the Company availed Cash Credit (Working Capital) facilities aggregating to ' 44,500
lacs from banks and financial institutions.

b) The facilities carry interest at a floating rate, linked to the applicable lending rate of the respective lenders, in accordance
with the terms of the respective sanction letters.

c) The cash credit (including Working Capital Demand Loan) loans are secured against first pari passu charge on all current
assets both present and future of the Company.

d) Quarterly statements filed by the Company with the banks and financial institutions were in agreement with the books
of accounts.

FY 2024-25

Term Loan

During 2024-2025, the outstanding term loan of ' 6,642 lacs as on March 31, 2024 was repaid in full and the security

provided for the loan stands withdrawn.

Cash Credit (including Working Capital Demand Loan)

During 2024-2025, working capital limits with ICICI Bank Limited were sanctioned for ' 10,000 lacs. As at March 31, 2025

there is no amount outstanding against these facilities.

24 Financial Instruments - Accounting classification and fair value measurements

a) The fair value of the assets and liabilities are included at the amount at which the instrument could be exchanged in a
current transaction between willing parties, other than in forced or liquidation sale.

b) The following methods and assumptions were used to estimate the fair value:

1) Fair value of cash and short-term deposits, trade and other short term receivables, trade payables, other current
liabilities, short term loans from banks and other financial instruments approximate their carrying amounts largely due
to the short term maturities of these instruments.

2) Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such
as interest rate and individual credit worthiness of the counter party. Based on this evaluation, allowances are taken
to account for the expected losses of these receivables.

c) The company uses the following hierarchy for determining and disclosing the fair value of financial Instruments by
valuation technigues;

Level 1: Quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2: Valuation technigues for which all inputs which have a significant effect on the recorded fair value are observable,
either directly or indirectly."

Level 3: Valuation technigues which use inputs that have a significant effect on the recorded fair value that are not based
on observable market data.

The following table shows the carrying amounts and fair values of financial assets and financials liabilities, including their
levels in the fair value hierarchy ;

25 Financial risk management
Objectives and policies
Risk management framework

The Company's management has overall responsibility for the establishment and oversight of the Company's risk
management framework.

The Company conducts yearly risk assessment activities 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 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 Company has a system in place to ensure risk identification and ongoing periodic risk assessment is carried out. The
Board of directors periodically monitors the risk assessment.

The Company has exposure to the following risks arising from financial instruments :

- Credit risk

- Liquidity risk

- Market risk

- Interest risk

a) Credit risk

Credit risk is the risk that counterparty will not meet its obligation under a financial instrument or customer contract, leading
to a financial loss. The Company is exposed to credit risk from its operating activities and from its financing activities,
including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments. The
company generally doesn't have collateral.

The carrying amounts of financial assets represent the maximum credit risk exposure. The maximum exposure to credit risk
at the reporting date is as follows :-

An impairment analysis is performed for all major customers at each reporting date on an individual basis. In addition,
a large number of minor receivables are grouped into homogenous group and assessed for impairment collectively. The
calculation is based on historical data. The maximum exposure to credit risk at the reporting date is the carrying value of
each class of financial assets. The company evaluates the concentration of risk with respect to trade receivables as low, as
its customers are located in several jurisdictions and operate in largely independent markets.

Bank balances and deposits with banks

Credit risk from balances with banks is managed by the company's finance department as per Company's policy. Investment
of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty.
Counterparty credit limits are reviewed by the Company's Board of Directors on an annual basis, and may be updated
throughout the year subject to approval of the Company's Board of directors. The limits are set to minimise the concentration
of risks and therefore mitigate financial loss through counterparty's potential failure to make payments.

b) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial
liabilities that are settled by delivering cash or another financial asset. The Company's approach to managing liquidity is to
ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal
and stressed conditions, without incurring unacceptable losses or risking damage to the Company's reputation.

Exposure to liquidity risk

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross
and undiscounted, and include estimated interest payments and exclude the impact of netting agreements.

Trade receivables

Customer credit risk is managed as per Company's established policy, procedures and control relating to customer credit
risk management. Credit risk has always been managed by the Company 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.

c) Market risk

Market risk is the risk of loss of future earnings, fair value or future cash flows arising out of change in the price of a financial
instrument. These include change as a result of changes in the interest rates, foreign currency exchange rates, equity prices
and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive
financial instruments including investments and deposits, foreign currency receivables, payables and loans and borrowing.

The company manages market risk through a risk management committee engaged in, inter alia, evaluation and identification
of risk factors with the object of governing / mitigation them accordingly to company's objectives and declared policies in
specific context of impact thereof on various segments of financial instruments.

Currency risk

The Company is exposed to currency risk to the extent that there is mismatch between the currencies in which sales,
purchase are denominated and the respective functional currencies of Company. The Company has export sales primarily
denominated in US dollars.

d) Interest 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 entity's exposure to the risk of changes in market interest rates relates primarily to the Company's
long-term debt obligations with floating interest rates.

28 Capital Management

For the purpose of the Company's capital management, capital includes issued capital and all other equity reserves
attributable to the equity shareholders of the Company. The primary objective of the Company when managing capital
is to safeguard its ability to continue as a going concern and to maintain an optimal capital structure so as to maximize
shareholder value.

Consequent to such capital structure, there are no externally imposed capital requirements. In order to maintain or achieve
an optimal capital structure, the Company allocates its capital for distribution as dividend or re-investment into business
based on its long term financial plans.

b) Lease rentals of ' 110.37 lacs (P.Y. ' 45.83 lacs ) in respect of short term lease have been recognised in the statement of
profit and loss as rent expense.

c) The Company has taken bottling units under short term cancellable operating lease at various locations and during the
financial year ' 103.76 lacs (P.Y. ' 139.14 lacs ) paid towards lease rentals has been charged to Statement of Profit and Loss
under Contract manufacturing cost.

32 Employee Stock Option Scheme

a) The Company has implemented;

(i) Tilaknagar Employee Stock Option Scheme, 2008

(ii) Tilaknagar Employee Stock Option Scheme, 2010

(iii) Tilaknagar Employee Stock Option Scheme, 2012

(iv) Tilaknagar Stock Appreciation Rights Scheme 2024 ("SAR Scheme")

(v) Tilaknagar Employee Stock Option Scheme, 2025

in accordance with the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 ("SBEB & SE Regulations")
and the Special Resolutions passed by the members on August 27, 2007, August 24, 2009, September 20, 2010, May 24,
2012, August 27, 2024 and February 09, 2026 respectively.

33 Segment Reporting:

The Company is predominantly engaged in the business of manufacture and sale of Indian Made Foreign Liquor and its
related products which constitute a single business segment. This is the only activity performed and is thus also the main
source of risks and returns. Accordingly there is no other separate segment as per Indian Accounting Standard 108 dealing
with "Operating Segment". The geographical segmentation is insignificant as the export turnover is less than 10% of the
total turnover and also company's Non Current assets (other than Financial Instrument, deferred tax, post employment
benefits and rights arising under insurance contracts) are located in India.

Revenue of I 3,73,276 lacs is derived from the three external customers ( P.Y.I 2,56,757 lacs ) that individually contributed
more than 10% of the total revenue.

**Key Managerial Personnel who are under the employment of the Company are entitled to post employment benefits and other long term
employee benefits recognised as per Ind AS 19 - 'Employee Benefits' in the financial statements. As these employee benefits are lump sum
amounts provided on the basis of actuarial valuation, the same is not included above.

c) In addition to the above remuneration, the Board of Directors have approved payment of Commission to Non-Executive
(including Independent) Directors of the Company of an aggregate amount not exceeding Rs. 50,00,000 for the
financial year 2025-26 and Commission to Executive Directors of the Company including Executive Directors who are
part of Promoter and Promoter Group of an aggregate amount not exceeding Rs 5,00,00,000, subject to the approval
of the Members at the ensuing Annual General Meeting.

35 I n accordance with proviso to Section 129(3) read with Rule 5 of the Companies (Accounts) Rules, 2014, a statement
containing salient features of the financial statements of the Company's subsidiaries in Form AOC-1 is attached to the
financial statements of the Company.

41 The Company has entered into arrangements with Tie-up Manufacturing Units (TMUs) and its wholly owned Subsidiaries
(referred as Subsidiaries), wherein TMUs and Subsidiaries manufacture and sell beverage alcohol on behalf of the Company.
Under such arrangements, the Company has exposure to significant risks and rewards associated with the sale of products
i.e. it has the primary responsibility for providing goods to the customer, has pricing latitude and is also exposed to inventory
and credit risks. Accordingly, the transactions of the TMUs and Subsidiaries under such arrangements have been recorded as
gross revenue, excise duty and expenses as if they were transactions of the Company. The Company also presents inventory
under such arrangements as its own inventory. The net receivables from / payable to TMUs and Subsidiaries are recognised
under other financial assets / other financial liabilities respectively.

42 The Company expects to restart the grain distillery plant post incurring of relevant capital expenditure. In view of this, the
management believes that there is no impairment in value of its ENA Plant and hence the recoverable amount of the ENA
Plant is not reguired to be estimated.

43 a) Anupama Wine Distributors has filed a suit before the City Civil Court, Bangalore claiming approximately I 731.10

lacs towards refund of security deposit and other dues. The Hon'ble Court vide its Order dated December 22, 2007
dismissed their application for attachment of property for recovery of the above dues. The Company has filed a counter
claim for the sum of approximately I 1,193.00 lacs against Anupama Wine Distributors and the matter is pending before
City Civil Court, Bangalore. Arguments were over by April 2026 and the matter was reserved for orders.

b) A body corporate had filed a suit in the Bombay High Court in 2009 disputing ownership of one of the Company's
brands, against which the Company filed a counterclaim. By order dated December 22, 2011, the Court ruled in favor
of the Company, permitting unrestricted nationwide use of the brand. An appeal against this order was dismissed by
the Division Bench on July 16, 2025, thereby affirming the Company's rights. Separately, a Single Bench order dated
February 7, 2025 had permitted the body corporate's assignee to use the brand name in West Bengal; however, this
order was stayed and subseguently set aside by the Division Bench on July 16, 2025, pursuant to the Company's
appeal, and the assignee undertook not to act upon it. The body corporate challenged the Division Bench decision
before the Supreme Court, which on September 16, 2025 upheld the July 16, 2025 order and disposed of the Special
Leave Petitions, resulting in the body corporate and its assignee being restrained from using the brand name until
final adjudication of the suit and the cancellation of permission granted to the assignee of the Body Corporate in West
Bengal. The matter is presently pending before the Bombay High Court, where the Assignee of the Body Corporate
has filed their evidence and the Company has filed an interim application to file additional written statement, this
interim application of the Company is allowed and the matter is adjourned to 15^th June, 2026, the body corporate
has informed the Court that they will be filing their evidence before the scheduled date. Meanwhile, the Company
continues uninterrupted and exclusive use and sale of goods under the brand.

46 Note on Acquisition of Imperial Blue Business

On 23 July 2025, the Company entered into a Business Transfer Agreement ("BTA") with Pernod Ricard India Private Limited
("PRIPL") to acguire the Imperial Blue business division ("IB Business") through a slump sale on a going concern basis.
The transaction received approval from the Competition Commission of India on 7 October 2025 and was completed on
1 December 2025, which has been considered as the acguisition date for accounting purposes under Indian Accounting
Standard (Ind AS) 103 - Business Combinations.

The acguisition is in line with the Company's long-term strategy of strengthening its presence in the Indian Made Foreign
Liguor (IMFL) segment by expanding its whisky portfolio, enhancing its brand portfolio, increasing its geographic footprint
and creating long-term value through operational and commercial synergies.

Pursuant to the acguisition, the Company acguired the Imperial Blue brand together with allied trademarks including Imperial
Black and Imperial Red, associated intellectual property rights and the related business undertaking. In connection with the
acguisition, the Company also entered into (i) a Trademark Licence Agreement for use of the "Seagram's" trademark during
the transition period, (ii) a long-term Concentrated Alcoholic Beverage ("CAB") Supply Agreement, and (iii) a Transitional
Services and Manufacturing Agreement ("TSMA") with PRIPL to facilitate an orderly transition of the acguired business.

The total consideration transferred for the acguisition amounted to C 3,63,333.06 lacs, comprising an upfront cash
consideration of C 3,44,234.13 lacs and deferred consideration having a fair value of C 19,098.93 lacs (discounted using a
pre-tax cost of debt of 10.5% over a period of four years). The contractual deferred consideration payable after four years
amounts to EUR 28 million (approximately C 28,990 lacs).

48 The Revenue from Operations includes ' 6,692.44 lacs for the year ended March 31, 2026 ( P.Y. ' 2,901.09 Lacs ) received as
partial Subsidy from Government of Maharashtra under Package Scheme of Incentives, 2007, relating to past investments.

49 During the financial year 2025-2026, the Company made an additional follow-on investment of 4,008 Equity Shares and
11,752 Compulsory Convertible Preference Shares in Spaceman Spirits Lab Private Limited ("SSL"), makers of premium
Indian craft gin Samsara and craft rum Sitara, aggregating to Rs 1,066.29 lacs. Post completion of the aforementioned
investments, the Company's shareholding in SSL stands increased to 21.36% on a fully diluted basis. Accordingly, SSL
became an associate Company.

50 During the financial year 2025-2026, the Company issued Equity Shares of face value Rs 10/- each and Convertible Warrants
of face value Rs 10/- each to the persons belonging to the promoters and non-promoters category on a preferential basis
as per the following table :-

The identifiable intangible assets primarily comprise the Imperial Blue trademarks and associated intellectual property, the
favourable CAB supply arrangement and the contractual right to use the "Seagram's" trademark. These assets have been
recognised separately from goodwill as they satisfy the recognition criteria under Ind AS 103.

The goodwill of C 9,496.55 lacs represents the value of expected future economic benefits arising from anticipated growth
opportunities, enhancement of the Company's premium and prestige whisky portfolio, distribution network synergies,
operational efficiencies, assembled workforce and other benefits that do not qualify for separate recognition as identifiable
intangible assets.

The deferred consideration has been recognised at its acquisition-date fair value in accordance with Ind AS 103.

Acquisition-related costs, being non-recurring in nature and directly attributable to the acquisition, amounting to C 22,006.72
lacs for the year ended 31 March 2026 have been recognised as Exceptional Items in the Statement of Profit and Loss in
accordance with Ind AS 103.

47 The Income Tax Department conducted a search operation under section 132 of the Income Tax Act,1961 on 2^nd February'24
at the premises of the Company and key persons. The Deputy Commissioner of Income tax (DCIT) has reassessed the
income pursuant to the search and has passed the assessment orders from AY 2016-17 to AY 2024-25. Certain additions /
disallowances were made to the returned income of the company against which the company had filed an appeal before
the Commissioner of Income-tax (Appeals) - CIT(A). Subsequently, an order under section 250 of the Act was passed by
the Hon'ble CIT (A) wherein a partial relief amounting to C 16,869.11 lacs was granted. Based on the Company's risk-
assessment process and applicable laws, there is no material impact on the financial position, operation, or other activities
of the Company. The company will be filing further appeals before the Tribunal against the above CIT(A) orders and expects
a favourable outcome.

Accordingly, as on March 31, 2026, 70,70,000 convertible warrants issued to Promoters are pending conversion to equity
shares. An amount of Rs 6,751.85 lacs for the said warrants is lying under money received against share warrants in Other
Equity and Rs 20,255.55 lacs is outstanding as on March 31, 2026.

51 The Board of Directors of the Company "Transferee Company" at their Board Meeting held on May 29, 2026, approved the
Composite Scheme of Amalgamation under Sections 230 to 232 and other applicable provisions of the Companies Act, 2013
read with relevant rules and regulations. The Scheme, inter alia, provides for amalgamation of two wholly-owned subsidiaries
of the Company, viz. (i) Punjabexpo Breweries Private Limited; (ii) Vahni Distilleries Private Limited; collectively referred to as
the "Transferor Companies" and individually referred to as the "Transferor Company" with and into the transferee company.
The appointed date for the Scheme is proposed to be 1 April 2026 or such other date as may be approved by the Hon'ble
National Company Law Tribunal(s) for the purposes of the Scheme. The Scheme shall be subject to necessary approvals
by the Shareholders, Creditors, Jurisdictional Bench of National Company Law Tribunal ("NCLT") and other statutory and
regulatory authorities, as may be required."

52 a) The Board of Directors recommended payment of Dividend of C 1 per equity share of C 10/- each for the financial year

ended March 31, 2026 subject to the approval of the Members at the ensuing Annual General Meeting.

b) During the financial year 2025-26 the Company has paid dividend of ' 1,938.14 lacs ( ' 1/- per share) against the
dividend declared for the financial year 2024-25.

55 Other Statutory Information

There are either no transactions to report against the following disclosure reguirements as notified by MCA pursuant to
amended Schedule III or the same are not applicable to the Company

a) Undisclosed Income

b) Details of Crypto Currency or Virtual Currency

c) Details of Benami Property held

d) Wilful Defaulter

e) Relationship with Struck off Companies

f) Registration of charges or satisfaction with Registrar of Companies

g) Compliance with number of layers of companies

h) Compliance with approved Scheme(s) of Arrangements

i) Utilisation of Borrowed funds and share premium

56 The Company has used accounting software for maintaining its books of account which has a feature of recording audit
trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software.
With respect to changes made by certain privileged access rights to the SAP application and / or the underlying database
audit trail feature is not enabled. The Company does have a privileged access monitoring tool that monitors these access
rights and the Company is in the process of further strengthening this feature with adeguate logs to be maintained. Further
no instance of audit trail feature being tampered with was noted in respect of the software. Additionally, the audit trail of
previous year has been preserved by the Company as per the statutory reguirements for record retention to the extent it
was enabled and recorded in the previous year.

57 Figures of previous year have been regrouped, reclassified and recast, wherever considered necessary.