2.13 Provisions, contingent liabilities and contingent assets.

Provisions involving substantial degree of estimation in measurement are recognized when there is a present
obligation as a result of past events and it is probable that there will be an outflow of resources.

If the effect of the time value of money is material, provisions are determined by discounting the expected future
cash flows at current pre-tax rate that reflects current market assessments of the time value of money and the
risks specific to the liability when discounting is used, the increase in the passage of time is recognized as finance
costs.

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by
the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company
or a present obligation that is not recognized because it is not probable that an out flow of recourses will be
required to settle the obligation. A contingent liability also arises in extremely rare cases where there is liability
that can't be recognized because it can't be measured reliably.

A contingent liability is not recognized in the financial statements, but discloses its existence in the Financial
Statement.

When the realization of income is virtually certain, then the related asset is no longer a contingent asset, and is
recognized as an asset.

Provisions, contingent liabilities and contingent assets are reviewed at each balance sheet date.

2.14 Dividend payable

Final dividend on shares is recorded as a liability on the date of approval by the shareholders and interim dividend
are recorded as a liability on the date of declaration by the Company's Board of Directors. A corresponding
amount is recognized directly in equity.

2.15 Foreign currency transactions

Transactions in foreign currency are recorded at the exchange rate prevailing on the date of transaction. Monetary
items denominated in foreign currencies at the year ended translated at the year ended rates which is likely to
be realized from, or required to disburse at the balance sheet date. Exchange differences arising on settlement
of monetary items at rates different from those at which they were initially recorded / reported in Standalone
Financial Statements are recognized as income or expense in the year in which they arise.

Non-monetary items which are carried at historical cost denominated in a foreign currency are translated using
the exchange rate at the date of the initial transaction.

2.16 Employee benefits

a) Short -term employee benefits are recognized as an expense at the undiscounted amount in the Statement
Profit & Loss Account of the period in which the related service is rendered.

b) Long -term employee benefits are recognized as an expense in the Statement Profit & Loss Account for the
year in which the employee has rendered services.

Defined Benefit Plans

The Company's liabilities on account of gratuity and earned leaves on retirement of employees are determined
at the end of each financial year on the basis of actuarial valuation certificates obtained from registered
actuary in accordance with the measurement procedure as per Indian Accounting Standard (INDAS)-19-
'Employee Benefits'.

i. Compensated absences

Accumulated leave, which is expected to be utilized within next 12 months, is treated as short term
employee benefit and this is shown under current provisions in the Balance Sheet. The Company treats
accumulated leave expected to be carried forward beyond twelve months, as long-term employee benefits
and shown under long term provisions in the Balance sheet.

ii. Gratuity

The Company provides for retirement benefits in the form of gratuity. The Company's liability towards
this benefit is determined on the basis of actuarial valuation using projected unit credit method at the
date of Balance sheet. Actuarial gain and Losses in respect of such benefits are recognized in Other
Comprehensive Income.

2.17 Financial instruments

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

A. Financial Assets

a. Initial recognition

The Company classifies financial instruments, or their component parts, on initial recognition as
a financial asset, a financial liability or an equity instrument in accordance with the substance of the
contractual arrangement. Financial instruments are recognized when the Company becomes a party to
the contractual provisions of the instrument. Financial instruments are recognized initially at fair value
plus transactions costs that are directly attributable to the acquisition or issue of the financial instrument,
except for financial assets at fair value through statement of profit and loss, which are initially measured
at fair value, excluding transaction costs (which is recognized in statement of profit and loss).

b. Subsequent measurement

i) Financial assets carried at amortized cost (AC)

A financial asset is subsequently measured at amortized 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.

ii) Financial assets at fair value through other comprehensive income (FVTOCI)

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.

iii) Financial assets at fair value through statement of profit and loss (FVTPL)

Equity instruments

All equity investments in scope of Ind AS 109 are measured at fair value either as at FVTOCI or
FVTPL. The Company makes such election on instrument-by-instrument basis. For equity instruments
measured as at FVTOCI, all fair value changes on the instrument, excluding dividends, are recognized
in the OCI. Equity instruments included within the FVTPL category are measured at fair value with all
changes recognized in the Statement of Profit & Loss account.

c. De-recognition

A Financial Assets (or where applicable, part of financial assets) is primarily derecognized when:

1. The contractual right to receive cash flows from the assets have expired or

2. The Company has transferred its right to receive cash flow from the financial assets and subsequently
all the risks and rewards of ownership of the assets to third party.

d. Reclassification of financial assets

Company determines the classification of financial assets and liabilities on initial recognition. After initial
recognition, no reclassification is made for financial assets which are equity instruments and financial
liabilities.

e. Impairment of financial assets

The Company recognized loss allowance using the expected credit loss (ECL) model for the financial
assets which are not fair valued through Statement of Profit and loss. Loss allowance for trade receivable
with no significant financing component is measured at an amount equal to life time ECL
For all other financial assets, expected credit loss are measured at an amount equal to the twelve-month
ECL, unless there has been a significant increase in credit risk from initial recognition in which case those
are measured at lifetime ECL.

B. Financial liabilities

a. Initial recognition and measurement

All financial liabilities are recognized initially at fair value and in case of loans and borrowings and payables,
net of directly attributable cost. The Company's financial liabilities include trade and other payable, loans and
borrowing including bank over drafts, financial guarantee contracts and derivative financial instruments. Fees
of recurring nature are directly recognized in statement of profit and loss as finance cost.

b. Subsequent measurement:

Financial liabilities are subsequently carried at amortized 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.

i) Loans and borrowings

After initial recognition, interest bearing loans and borrowings are subsequently measured at
amortized cost using the effective interest rate (EIR) method. Gains and losses are recognized in
statement of profit and loss when liabilities are de-recognized. Amortized cost is calculated by taking
into account any discount or premium on acquisition and fees or costs that are an integral part of the
EIR. The EIR amortization is included as finance cost in the statement of profit and loss.

ii) Compound financial instruments

At the issue date the fair value of the liability component of a compound instrument is estimated
using the market interest rate for a similar non-convertible instrument. This amount is recorded as a
liability at amortized cost using the effective interest method until extinguished upon conversion or
at the instrument's redemption date. The equity component is determined as the difference of the
amount of the liability component from the fair value of the instrument. This is recognized in equity,
net of income tax effects, and is not subsequently re-measured.

c. De-recognition of financial instruments

A financial liability is derecognized where the obligation under the liability is discharged or cancelled or
expires where an existing financial liability is replaced by another from the same tender on substantially
different terms, or the terms of an existing liability are substantially modified, such an exchange or
modification is treated as the de-recognition of the original liability and the recognition of new liability.
The difference in the respective carrying amounts is recognized in the statement of Profit and Loss.

d. Offsetting of financial instruments

Financial assets and financial liabilities including derivative instruments are offset and the net amount
is reported in the Balance sheet, if there is a currently enforceable legal right to offset the recognized
amounts and there is an intention to settle on a net basis or to realize the assets and settle the liabilities
simultaneously.

e. Fair value measurement

Fair value is a market-based measurement, not an entity-specific measurement. Under Ind AS, fair valuation
of financial instruments is guided by Ind AS 113 "Fair Value Measurement" (Ind AS - 113).

For some assets and liabilities, observable market transactions or market information might be available.
For other assets and liabilities, observable market transactions and market information might not be
available. However, the objective of a fair value measurement in both cases is the same to estimate the
price at which an orderly transaction to sell the asset or to transfer the liability would take place between
market participants at the measurement date under current market conditions (i.e. an exit price at the
measurement date from the perspective of a market participant that holds the asset or owes the liability).

Three widely used valuation techniques specified in the said Ind AS are the market approach, the cost
approach and the income approach which have been dealt with separately in the said Ind AS.

Each of the valuation techniques stated as above proceeds on different fundamental assumptions, which
have greater or lesser relevance, and at times there is no relevance of a particular methodology to a given
situation. Thus, the methods to be adopted for a particular purpose must be judiciously chosen. The
application of any particular method of valuation depends on the Company being evaluated, the nature
of industry in which it operates, the Company's intrinsic strengths and the purpose for which the valuation
is made.

In determining the fair value of financial instruments, the Company uses a variety of methods and
assumptions that are based on market conditions and risks existing at each balance sheet date.

The Company uses the following hierarchy for determining and disclosing the fair value of financial
instruments by valuation technique:

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

Level 2 : Inputs other than quoted prices included within Level 1 that are observable for the asset or
liability, either directly or indirectly.

Level 3 : Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs)

f) Share capital

An equity instrument is a contract that evidences residual interest in the assets of the Company after
deducting all of its liabilities. Incremental costs directly attributable to the issuance of new equity shares
are recognized as a deduction from equity, net of any tax effects.

2.18 Impairment Non-financial assets

The carrying amount of any property, plant and equipment and intangible assets with finite lives are reviewed at
each balance sheet date, if there is any indication of impairment based on internal /external factor. An asset is
impaired when the carrying amount of the asset exceeds the recoverable amount. Recoverable amount is higher
of an asset's or cash generating unit's net selling price and its value in use. Recoverable amount is determined for
an individual asset, unless the asset does not generate cash inflows that are largely independent of those from
other assets or group of assets.

An impairment loss is charged to the Statement of Profit and loss in the year in which an asset is identified as
impaired. An impairment loss recognized in prior accounting periods is reversed if there has been change in the
estimate of the recoverable amount. At each balance sheet date, the Company assesses whether there is any
indication that any property, plant and equipment and intangible assets with finite lives may be impaired. If any
such impairment exists, the recoverable amount of an asset is estimated to determine the extent of impairment.
If at the balance sheet date there is an indication that a previously assessed impairment loss no longer exists, the
recoverable amount is reassessed and the impairment loss previously recognized is reversed such that the asset
is recognized at its recoverable amount but not exceeding written down value which would have been reported
if the impairment loss had not been recognized.

2.19 Taxes

Income tax expense comprises current tax and deferred tax and is recognized in the Statement of Profit and Loss
except to the extent it relates to items directly recognized in Equity or in Other Comprehensive Income (OCI).
Current tax

Provision for current tax is made with reference to taxable income computed for the accounting period for
which the Standalone Financial Statements are prepared by applying the tax rates and laws that are enacted or
substantively enacted at the balance sheet date. The tax is recognized in statement of profit and loss, except to
the extent that it related to items recognized in the OCI or in other equity. In this case, the tax is also recognized
in other comprehensive income and other equity.

The Company offsets current tax assets and current tax liabilities, where it has a legally enforceable right to set
off the recognized amounts and where it intends either to settle on a net basis or to realize the assets and settle
the liabilities simultaneously.

Deferred tax

Deferred tax is recognized using the balance sheet approach. Deferred tax assets and liabilities are recognized
for deductible and taxable temporary differences arising between the tax base of assets and liabilities and their
carrying amount in financial statements, except when the deferred tax arises from the initial recognition of
goodwill or an asset or liability in a transaction that is not a business combination and affects neither accounting
nor taxable profits or loss at the time of the transaction.

Deferred tax assets are recognized for deductible temporary differences, the carry forward of and any unused
tax losses to the extent that it is probable that taxable profit will be available against which the deductible
temporary differences, and the carry forward of unused tax losses can be utilized.

The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent
that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax
assets to be recovered.

Unrecognized deferred tax assets are re-assessed at each balance sheet date and are recognized to the extent
that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when
the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or
substantively enacted at the balance sheet date.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off deferred
tax assets against deferred tax liabilities and the deferred taxes relate to the same taxable entity and the same
taxation authority.

2.20 Earnings per Share

The Company presents basic and diluted earnings per share ("EPS") data for its equity shares. Basic EPS is
calculated by dividing the profit/loss before other comprehensive income/loss for the year attributable to equity
shareholders of the Company by the weighted average number of equity shares outstanding during the period.
Diluted EPS is determined by adjusting the profit/loss before other comprehensive income/loss for the year
attributable to equity shareholders and the weighted average number of equity shares outstanding for the
effects of all dilutive potential equity shares.

2.21 Non-current assets (or disposal groups) held for sale and discontinued operations

a) Non-current assets (or disposal groups) are classified as held for sale if their carrying amount would be
recovered principally through a sale/distribution rather than through continuing use and a sale/distribution is
considered highly probable.

Actions required to complete the sale/distribution should indicate that it is unlikely that significant changes to
the sale/ distribution would be made or that the decision to sell/distribute would be withdrawn. Management
must be committed to sale/distribution expected within one year from the date of classification.

b) Immediately before the initial classification of the assets (and disposal groups) as held for sale, the carrying
amount of the assets (or all the assets and liabilities in the disposal groups) are measured in accordance with
their applicable accounting policy.

Non-current assets (or disposal groups) held for sale/for distribution to owners are subsequently measured
at the lower of their carrying amount and fair value less costs to sell, except for assets such as deferred tax
assets, assets arising from employee benefits and financial assets which are specifically exempt from this
requirement.

c) Non-current assets including those that are part of a disposal group (PPE and Intangible assets) once classified
as held for sale/ distribution to owners are neither depreciated nor amortized. Interest and other expenses
attributable to the liabilities of a disposal group classified as held for sale continue to be recognized.

d) Non-current assets (including assets of a disposal group) classified as held for sale are presented separately
from the other assets in the Balance sheet. The liabilities of a disposal group classified as held for sale/
distribution are presented separately from other liabilities in the Balance sheet.

e) A disposal group qualifies as discontinued operation, if it is a component of equity that has either being
disposed of or is classified as Held for sale, and that represents a separate major line of business or

geographical area of operations, or is part of a single co-ordinate plan to dispose of a separate major line of
business or geographical area of operations or is a subsidiary exclusively with a view to resale.

Discontinued operations are excluded from the results of continuing operations and are presented separately
as a single amount as profit or loss after tax from discontinued operations in the Statement of Profit and Loss
and comparative information is restated accordingly.

f) All notes to the Standalone Financial Statements mainly include amounts for continuing operations, unless stated
otherwise.

2.22 Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision-maker. Revenue and expenses are identified to segments on the basis of their relationship
to the operating activities of the segment. Inter segment revenue are accounted for based on the cost price.
Revenue, expenses, assets and liabilities which are not allocable to segments on a reasonable basis, are
included under "Unallocated revenue/ expenses/ assets/ liabilities". The chief operating decision-maker, who is
responsible for allocating resources and assessing performance of the operating segments, has been identified
as the Managing Director who makes strategic decisions.

The accounting policies adopted for segment reporting are in line with the accounting policies adopted for
preparing and presenting the Standalone Financial Statements of the Company as a whole.

2.23 Cash and cash equivalents

Cash and cash equivalents in the Balance sheet comprise cash on hand, cheques on hand, balance with banks on
current accounts and debit balance of cash credit account if any and short term, highly liquid investments with
an original maturity of three months or less and which carry insignificant risk of changes in value.

For the purpose of the Cash Flow Statement, Cash and cash equivalents consist of Cash and cash equivalents, as
defined above and net of outstanding book overdrafts as they are considered an integral part of the Company's
cash management.

2.24 Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit/loss before tax 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 flows. The cash flows from operating,
investing and financing activities of the Company are segregated.

Note No. : 2A Key accounting judgment, estimates and assumptions

The preparation of the Standalone Financial Statements requires the use of accounting estimates, which, by
definition would seldom equal the actual results. Management also needs to exercise judgment and make
certain assumptions in applying the Company accounting policies and preparation of Standalone Financial
Statements

The use of such estimates, judgments and assumptions affects the reported amounts of revenue, expenses, assets
and liabilities including 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 the future periods.

Estimates and judgments are continually evaluated. They are based on historical experience and other factors
including expectations of future events that may have a financial impact on the Company and that are believed
to be reasonable under the circumstances.

Estimates and assumptions

The Company has based its assumptions and estimates on parameters available when the financial statement
was prepared. Existing circumstances and assumptions about future developments, however, may change due
to market changes or circumstances arising that are beyond the control of the Company. Such changes are
reflected in the assumptions when they occur.

The key assumptions concerning the future and other key sources of estimation uncertainty at the balance sheet
date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities
within the next financial year are described below.

i) Depreciation and useful lives of property, plant and equipment: Property, plant and equipment are
depreciated over the estimated useful lives of the assets, after taking into account their estimated residual

value. Management reviews the estimated useful lives and residual values of the assets annually in order
to determine the amount of depreciation to be recorded during any reporting period. The useful lives and
residual values are based on the Company's historical experience with similar assets and take into account
anticipated technological changes. The depreciation for future periods is adjusted if there are significant
changes from previous estimates.

ii) Income Tax: Management judgment is required for calculation of income tax and deferred tax assets and
liabilities. Deferred tax assets are recognized for unused losses (carry forward of prior years' losses) to the
extent that it is probable that taxable profit would be available against which the losses could be utilized.
The Company reviews at each balance sheet date the carrying amount of deferred tax. The factor used in
estimate may differ from actual outcome which may lead to significant adjustment in the amounts in financial
statement.

iii) Recoverability of trade receivable: Judgments are required in assessing the recoverability of overdue trade
receivables and determining whether a provision against those receivables is required. Factors considered
include the credit rating of the counterparty, the amount and timing of anticipated future payments and any
possible actions that can be taken to mitigate the risk of non-payment.

iv) Provisions for contingencies: Provisions are recognized in the period when it becomes probable that there
will be a future outflow of funds resulting from past operations or events and the amount of cash outflow can
be reliably estimated. The timing of recognition and quantification of the liability require the application of
judgment to existing facts and circumstances, which can be subject to change. Since the cash outflows can
take place many years in the future, the carrying amounts of provisions and liabilities are reviewed regularly
and adjusted to take account of changing facts and circumstances.

v) Impairment of non-financial assets: The Company assesses at each reporting date whether there is an
indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an
asset is required, the Company estimates the asset's recoverable amount. An asset's recoverable amount is
the higher of an asset's or CGU's fair value less costs of disposal and its value in use. It is determined for an
individual asset, unless the asset does not generate cash inflows that are largely independent of those from
other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its recoverable
amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value
in use, the estimated future cash flows are discounted to their present value using pretax discount rate
that reflects current market assessments of the time value of money and the risks specific to the asset. In
determining fair value less costs of disposal, recent market transaction are taken into account, if no such
transactions can be identified, an appropriate valuation model is used.

vi) Estimation of Defined benefit obligations: The Company's obligation on account of gratuity and
compensated absences is determined based on actuarial valuation.

An actuarial valuation involves making various assumptions that may differ from actual developments in the
future. These include the determination of the discount rate, future salary increases and mortality rates. Due
to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly
sensitive to changes in these assumptions. All assumptions are reviewed at each financial year end.

vii) Impairment of financial assets: The impairment provisions for financial assets are based on assumptions
about risk of default and expected cash loss rates. The Company uses judgment in making these assumptions
and selecting the inputs to the impairment calculation, based on Company's past history, existing market
conditions as well as forward looking estimates at the end of each reporting period.

viii) Fair value measurement of financial instruments: When the fair value of the financial assets and liabilities
recorded in the balance sheet cannot be measured based on the quoted market price in activate markets, their
fair value is measured using valuation technique. The input to these models are taken from the observable
market where possible, but if this is not feasible, a review of judgment is required in establishing fair values.
Changes in assumption relating to this assumption could affect the fair value of financial instrument.

ix) Material uncertainty about going concern: In preparing financial statements, management has made
an assessment of Company's ability to continue as a going concern. Standalone Financial Statements
are prepared on a going concern basis. The Management is aware, in making its assessment, of material
uncertainties related to events or conditions that may cast significant doubt upon the Company's ability to
continue as a going concern.

Recent pronouncements

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as issued from time to time.

In May 2025, MCA notified amendments to Ind AS 21 - The Effects of Changes in Foreign Exchange Rates,
applicable w.e.f. April 1,2025. The Ministry of Corporate Affairs (MCA) notified the Companies (Indian Accounting
Standards) Amendment Rules, 2025, which amend 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 that
enables users of its Standalone 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 Company has reviewed the amendment and based on its evaluation has determined that it does not have
any impact in its financial statements.

In August 2025, MCA notified the following amendments to:

1. Ind AS 1, Presentation of Financial Statements, applicable w.e.f. April 1, 2025 -

The amendment relates to classification of liabilities as current or non-current and non-current liabilities with
covenants. In the context of classifying a liability as current, it removes the requirement of existence of a
right to defer settlement for at least 12 months after the reporting date and instead requires that the said
right should exist on the reporting date and have substance. The amendment also introduces guidance on
classification of liabilities with covenants.

A requirement has been introduced to require disclosure 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.

If there is a breach of a material covenant of a long term loan arrangement on or before the end of the
reporting period, resulting in the liability becoming payable on demand as at the reporting date, and the
lender agrees—after the reporting period but before the Standalone Financial Statements are approved
for issue—not to demand repayment for at least 1 2 months as a consequence of the breach, this shall be
treated as an adjusting event. Accordingly, the entity is not required to classify the liability as current. The
amendments are effective for annual reporting periods beginning on or after 1 April 2025 retrospectively in
accordance with Ind AS 8.

The Company has no impact of these amendments in its classification criteria of current and non-current
liabilities.

2. Ind AS 7, Statement of Cash Flows and Ind AS 107, Financial Instruments: Disclosures, applicable w.e.f.
April 1, 2025 -

The amendment in Ind AS 7 requires to inform users of Standalone 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. Since the company does not have any supplier
finance arrangement the same is not applicable to the company.

I) Terms & Conditions of Secured Loans

1. Punjab National Bank
Term Loan

a) Secured by way of first pari-passu charge of mortgage of factory land and building of the company at Libberheri,
Barkatpur, Khaikheri and Shermau.

b) Secured by way of first pari passu charge of Hypothecation of other fixed assets (inclusive of all movables, plant
and machinery) both present and future of the borrower (excluding specific charge) shared with other term
Lender/soft loan lenders on pari- passu basis.

c) Third Charge on current assets of the company (except stock pledged) both present and future.

Cash Credit Limit

a) Secured by way of pledge of stocks of sugar at Libberheri, Shermau, Barkatpur and Khaikheri units of the
company.

b) Sub limit of ' 50 crores is secured by first pari passu charge by way of Hypothecation on stock of Molasses
present and future at all units of the company i.e. Libberheri, Shermau, Barkatpur and Khaikheri.

c) By way of third pari passu charge on immovable assets of the Company (Secured / to be secured).

Non-Fund Based

Secured by way of by first pari passu charges by hypothecation of stocks of raw materials, sugar, molasses,
other stores and spares and book debts/receivables and other current assets of the Company both present
and future and third pari passu charge on movable and immovable assets of the Company.

All the above facilities are secured by way of Corporate guarantee of Uttam Adlakha & Sons Holdings Private
Limited.

2. State Bank of India

Working Capital Demand Loan/RDL

Secured by way of exclusive Charge of pledge of stocks kept under commodity backed by warehouse receipt
finance scheme of SBI.

Cash Credit Limit

Pari-passu charge by way of Hypothecation of entire current assets of the Borrower.

All the above facilities are secured by way of Corporate guarantee of Uttam Adlakha & Sons Holdings Private Limited.

3. Cash Credit Limit from Yes Bank Limited

a) First Pari Passu charge by way of Hypothecation on Current Assets (excluding inventory exclusively pledged/
charged to the other lenders), both present and future.

b) Third Pari Passu charge created/to be created by way of Hypothecation on Movable Fixed Assets and by way
of Equitable mortgage on Immovable Fixed Assets of the company for both present and future.

4. Cash Credit Limit from ICICI Bank Limited

a) First Pari Passu charge by way of hypothecation on Current Assets (excluding inventory exclusively pledged/
charged to the other lenders), both present and future.

b) Third Pari Passu charge created/to be created by way of Hypothecation on Movable Fixed Assets and by way
of Equitable mortgage on Immovable Fixed Assets of the company for both present and future.

5. Cash Credit Limit from HDFC Bank Limited

a) First Pari Passu charge on entire Current Assets of the company (excluding inventory exclusively pledged/
charged to the other lenders), both present and future.

b) Third Pari Passu charge created/to be created by way of Hypothecation on Movable Fixed Assets and by way
of Equitable mortgage on Immovable Fixed Assets of the company for both present and future.

6. Axis Bank Limited

Commodity/Warehouse linked Working Capital Facility

Commodity/Warehouse linked Working Capital facility is secured by Pledge of Warehouse Receipts and Storage
Receipts.

Cash Credit Limit

a) First Pari Passu charge by way of Hypothecation on Current Assets (excluding inventory exclusively pledged/
charged to the other lenders).

b) Third Pari Passu charge created/to be created by way of Hypothecation on Movable Fixed Assets and by way
of Equitable mortgage on Immovable Fixed Assets of the company for both present and future.

7. Indusind Bank Limited

Secured by way of exclusive charge of pledge of stocks as per the warehouse receipt.

8. Zila Sahkari Bank Limited Ghaziabad
Term Loan

a) Secured by way of exclusive first charge on fixed assets of the company financed by the Bank.

b) Secured by way of first charge on all other fixed assets situated at Barkatpur Unit of the company on pari-passu
basis and also guaranteed by Managing Director of the company.

Cash Credit Facility
For Khaikheri Unit

a) Secured by way of pledge of sugar stocks of Khaikheri Unit of the company.

b) Secured by way of residual charge on immovable and movable assets of the Khaikheri unit of the company.
For Shermau Unit

a) Secured by way of pledge of sugar stocks of Shermau Unit of the company.

b) Secured by way of residual charge on immovable and movable assets of the Shermau unit of the company.

9. Cash Credit facility from District Co-operative Bank Ltd. Muzzafarnagar (Fully repaid during the year)

These loans were Secured by way of pledge of sugar stocks and by way of residual charge on immovable and
movable assets of Khaikheri Unit of the company.

10. Cash Credit facility from Uttarakhand State Co-Operative Bank Limited (Fully repaid during the year)

a) These loans were Secured by way of pledge of sugar stocks and by way of residual charge on immovable and
movable assets of Libberheri Unit of the company.

b) Cash Credit (Hypothecation) facility was secured by way of Hypothecation of Molasses stock of Libberheri unit
and residual charge on immovable and movable assets of the Libberheri unit of the Company.

11. Terms & Conditions of Unsecured Loan from Uttarakhand State Government

Financial Assistance from Uttarakhand State Government amounting to '656.68 lakhs and interest accrued &
due thereon of ' 503.63 lakhs was repayable in three years in quarterly installments w.e.f. January 2008 however
the same continues to be unpaid. An application for waiver off such loan is pending with the Government of
Uttarakhand.

12. Vehicle loans

Vehicle loans from Banks are secured by way of hypothecation of vehicle financed by them.

13. Terms & Conditions of Unsecured Loans

Unsecured Loans from Related parties is repayable on demand. Simple interest @10% will be accrued annually on
31⁵¹ March every year which is payable at the time of repayment of loan.

b. All the Current assets, loans and advances, in the opinion of the Board, have a value on realization which in the
ordinary course of business shall at least be equal to the amount at which it is stated in the balance sheet.

c. The Company has made an investment of the requisite amount for setting up new projects in the State of Uttar
Pradesh in accordance with the UP Sugar Industry Promotion Policy, 2004 and has accordingly filed application
for eligibility under the above policy. However, the State Government has later on terminated the Policy with
effect from June 4, 2007. The Company had filed writ petition before Hon'ble Allahabad high court (Lucknow
Bench) for enforcement of the scheme and settlement of incentive claims.

The writ petitions were allowed vide common Judgment dated 12.02.2019 of Hon'ble Allahabad High court
(Lucknow Bench) that the petitioners are entitled for consideration of all the benefits in the form of exemptions/
remission/ reimbursements as per the Sugar Industry Promotion Policy - 2004 and various notifications issued
thereunder from time to time for the entire period of the validity of the Policy. As per Hon'ble court, Since the
matter has become quite old it will be appropriate that the cases may be examined and benefits may be given
within a maximum period of two months from the date of order.

The State Government has challenged the order of the Hon'ble Allahabad High court (Lucknow Bench) in
Supreme Court where their petition has been admitted, and now the matter is pending with Supreme Court.
However, The Company have submitted the claim on 4^th September 2020 with Cane Commissioner of Uttar
Pradesh (Appropriate Authority) for an amount of '3847 lakhs as Capital Subsidy and for remission / exemption /
reimbursement of taxes, duties and other charges aggregating of '5489 lakhs. The claim will be accounted for
as and when it will be approved by the appropriate authority.

d. Investment Promotion and Facilitation Agency of Government of Uttar Pradesh (INVEST U.P.) had issued letter
of comfort on 12.01.2020 for grant facilities / relief under Industrial Investment and Employment Promotion
policy-2017 (IIEPP-2017) and in accordance to which Company has accounted for and submitted claim of
'108.75 lakhs on 19.02.2021 with PICUP which includes interest subsidy of '92.69 lakhs and '16.06 lakhs for
GST/VAT refund. The matter is under process with INVEST U.P. for final disposal.

e. The Company has expanded capacity from 1 50 KLPD to 250 KLPD at plant situated at Village Barakatpur. Letter
of comfort has been issued on 29.10.2024 under Industrial Investment and Employment Promotion policy-2022
(IIEPP-2022). Application of claim for capital subsidy of ' 500 lakhs filed on 18.02.2025, amount will be received
in 10 years in equal instalments.

Since the release of subsidy is dependent on the budget allocation of State Government it is recognized in
the books of accounts in the year of receipt. During the year Company has received a sum of '56.83 lakhs out
of such subsidy as first installment which being the capital subsidy has been reduced from cost of the plant &
machinery (refer note no.3 A)

f. The Company vide letter no. 1 (4) /2025-SP dated 14.11.2025 received from, Government of India Ministry of
Consumer affairs, Food & Public Distribution, Department of Food & Public Distribution is eligible for sugar
export quota for 20406 MT. Out of above during the year has been swapped 1 5508 MT with domestic quota for
'103.77 lakhs and 564 MT has been sold for '253.42 lakhs included in Revenue from Operations Note no. 25.
Government of India Ministry of Consumer affairs, Food & Public Distribution, Department of Food & Public
Distribution issued notification no. 16/ 2026-27 dated 13th May 2026 for export of sugar prohibited with
immediate effect till September 30, 2026. However, Company have further exported of sugar 273 MT during
the F.Y. 2026-27.

g. In pursuance to the Share Subscription Cum Transfer Agreement (SSTA) entered on 27.02.2024 with Uttamenergy
Limited (UEL) and Uttam Distilleries Ltd. (UDL company had completed both tranches of invesment i.e. first
tranche by way of subscription of 29080000 equity shares of UDL for '.2908 Lakhs and second tranche by way
of transfer of 16199100 equity shares of UDL from UEL '.2562.70 lakhs aggregating the total investment in
45279100 Equity shares of UDL (Subsidiary company) amounting to ' 5470.70 lakhs. (refer note no.4).

Further during the year company has also invested a sum of '1550.00 lakhs in 8% Non-cumulative redeemable
preference shares of UDL. Out of this '1550.00 lakhs, '600.00 lakhs for working capital and '950.00 lakhs as
promoter's contribution for expansion of the capacity. (refer note no.4)

h. On November 21,2025, the Government of India notified provisions 'Labour Codes' which consolidate twenty-
nine existing labour laws into a unified framework governing employee benefits during employment and post¬
employment. The Company had assessed the financial implications of these changes which had resulted in
increase in gratuity liability arising out of past service cost by '134.65 Lakhs. Considering the impact arising
out of an enactment of the new legislation is an event of non-recurring nature, the company has presented this
incremental amount as "Impact of Labour Codes" under "Exceptional Item" in the Statement of Profit and Loss
for the year ended March 31, 2026.

i. Regulatory fee @ '20 per quintal of molasses sales / inter-unit transfers imposed by the State Government of
Uttar Pradesh w.e.f. 24^th December, 2021 has been accounted for under protest as the company has challenged
the same and the matter is pending with Hon'ble Allahabad High Court.

j. The Uttar Pradesh Electricity Regulatory Commission (Captive and Renewal Energy Plants) Regulations, 2024
vide notification dated October 17, 2025 has revised power tariff with retrospective effect from April 1, 2024
for a period of five years. Accordingly, differential revenue due to revision of tariff has been accounted for in the
above financial statements and consequently, revenue from operations for the year ended March 31, 2026 has
increased by ' 739.79 lakhs (comprising '670.86 lakhs for the financial year 2024-25 and '68.93 lakhs pertaining
to the current financial year). Refer note no. 25.

k. a. The Board of Directors has proposed a dividend on 6.50% Redeemable Preference shares and on 10%

Redeemable Preference shares and '2.50/- per equity share of '10/- each, for the year ended 31^st March, 2026,
which are subject to approval of Shareholders at the ensuing Annual General Meeting of the Company.
b. During the year the Board of Directors has distributed a dividend for the year ended 31.03.2025 on 6.50%
Redeemable Preference shares and on 10% Redeemable Preference shares aggregating of '90.13 Lakhs
(Previous year '108.27 lakhs) and '2.50/- (Previous year '2.50/-) per equity share of ' 10/- each of '953.45 lakhs
(Previous Year '953.45 Lakhs), after approval of Shareholders at the Annual General Meeting of the Company.
Total cash outflow is '1029.08 lakhs (Previous Year ' 1059.62 Lakhs). Unpaid dividend as on date of Balance
Sheet is '26.62 lakhs (Previous year '12.12 lakhs). (Refer Note No. 10 & 17).

m. In terms of Ind AS 36 on impairment of assets, there was no impairment indicators exist as of reporting date as
per the internal management estimates done and hence no impairment charge is recognized during the year
under review.

n. Segment Information:

The Managing director has been identified as the Company's Chief Operating Decision -Maker (CODM) as
defined by IND AS- 108 Operating Segments. The Chief Operational Decision Maker monitors the operating
results of its business Segments separately for the purpose of making decisions 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.

Inter-segment revenues are eliminated upon consolidation and reflected in the Inter segment head. Finance
income and costs, and fair value gains and losses on financial assets are not allocated to individual segments as
the underlying instruments are managed at corporate level.

Current taxes, deferred taxes and certain financial assets and liabilities are not allocated to those segments as
they are also managed at corporate level.

Transactions between segments are primarily transferred at estimated market prices. Common costs are appor¬
tioned on a reasonable basis.

Geographical Location:- The geographical segments have been considered for disclosure as the secondary
segment, under which the domestic segment includes sales to customers located in India and overseas segment
includes sales to customer located outside India and through merchant exporters.

o. The details of performance obligation in terms of Ind AS 115 - Revenue from contracts with customers are
as follows:

Sugar:- The Sugar segment of the Company principally generates revenue from manufacturing and sale of sugar
and its by-products and power. Domestic sales of sugar is made on ex-factory/delivery basis in terms agreed to
wholesaler /institutional buyers/merchant exporters within the country. Domestic sugar sales are majorly done
on advance payment terms. Export sales of sugar to merchant exporters are done on ex-factory /delivered basis
in terms of the agreement and revenue is recognized when the goods have been shipped to / delivered to the
buyers' specific location. The sale price and payment terms is fixed as per contracted terms.

Power is supplied to distribution companies from the Company's facilities in accordance with the sale price,
payment terms and other conditions as per the Power Purchase Agreements ("PPA").

Bagasse are sold generally on advance payment terms on ex-factory basis as per the terms of the agreement
and revenue is recognized when the goods have been shipped to / delivered to the buyer.

The distillery segment of the Company principally generates revenue from sale of industrial alcohol which mainly
constitutes ethanol sold under contracts with Public and Private Oil Marketing Companies and other products
to institutional buyers.

For sale of Ethanol, sale price is pre-determined based on Expression of Interest /Tender floated from Oil
Marketing Companies. The prices are on delivered cost basis at Oil Marketing Companies locations inclusive of
all duties/levies/taxes/charges etc. Payment terms is within 21 days after delivery of material and submission of
original invoices.

Rectified Spirit, Extra Neutral Alcohol (ENA), etc. are sold on bulk basis to institutional buyers on ex-factory basis
as per agreed terms. Revenue is recognized when goods have been shipped to the buyers' specific location
as per agreed terms. The payment terms are fixed as per Company's policy which are generally on advance
payment basis.

The Company has made provision for gratuity and leave encashment in the nature of defined benefit obligation
on the basis of actuarial valuation as per Ind AS 19. Since the liability has not been funded through a trust or
insurer, there are no plan assets.

Defined benefits obligations:

Gratuity

The gratuity plan is governed by the payment of Gratuity Act 1972, under the said Act an employee who has
completed five years of service is entitled to specific benefit. The gratuity plan provides a lump sum payment
to employees at retirement, death, incapacitation or termination of employment. The level of benefits provided
depends on the member's length of service and salary at retirement age. Liability for gratuity is determined on
actuarial basis using projected unit credit method.

Leave Encashment

The employees of the Company are entitled to compensated absences that are both accumulating and non¬
accumulating in nature. The expected cost of accumulating compensated absences is determined by actuarial valuation
using the projected unit credit method for the unused entitlement accumulated at the balance sheet date.

A. 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 price. Market risk comprises three types of risk interest rate risk, currency risk and other
risks, such as regulatory risk and commodity price risk.

i) 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 borrowing obligations with floating interest rates.

w. The Company has given security deposit of ' 3.75 lakhs (P.Y. ' 3.75 lakhs) to Managing Director towards lease
of office premises as appearing in note no.4- Security deposits (current).

Note No. 35 : Financial Risk Framework

The Company's financial liabilities comprise borrowings, capital creditors and trade and other payables. The
main purpose of these financial liabilities is to finance the Company's operations. The Company's financial assets
include Loans, trade and other receivables, cash and cash equivalents.

The Company is exposed to market risk, credit risk and liquidity risk.

The Company's senior management overseas the management of these risks. The Company's senior management
provides assurance that the company's financial risks activities are governed by appropriate policies and risk
objectives. The Board of Directors reviews and agrees policies for managing each of these risks, which are
summarized below:

ii) Foreign currency risk

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 Direct exports made by the company which are made during the
year however same is very negligible as compare to total turnover.

Sensitivity

1% increase or decrease in foreign exchange rates will have no material impact on profit.

iii) Other risk

a) Regulatory risk

Sugar industry is regulated both by central government as well as by the state government, Central and
state governments policies and factors such as State Advised Price (SAP) and fair and Remunerative
Price (FRP) of sugar cane affects the sugar industry and the company's operations and profitability.
Distillery business is also dependent on the Government policy as the price of ethanol decided by the
Government. Similarly sugar prices are also effected by the Government Policies like restriction on
sale, import of sugar by way of allocation of monthly Quota, export of sugar and import duty / export
duty determination of sugar and MSP of sugar.

The regulatory risks listed above are Government policy driven and are beyond the control of the
company and can't be alleviated unless the industry is decontrolled. Various representation through
the body of industry like ISMA, UPSMA and UPDA submitted to Government to come out solutions
regarding above risks.

Power business is also dependent on the regulations prescribed by Central/State regulatory
commissions. They fix power purchase rates and other guide lines for supply based on cost of bagasse
and other inputs.

b) Commodity price risk

Sugar Prices in domestic and international markets depends primarily on the supply and demand
situation. Fluctuation in demand and supply arise on account of the change in the availability and
price of sugar variation in the production capacity of the competitor's availability of substitutes for
the sugar products and international demand and supply position. The company has mitigated this

risk by adding more value added products by diversifying into co- generation and distillation, thereby
utilizing the by- products. Similarly, in sugar product also the company's products are diversifying in
specialty sugar segments like brown sugar, sachet, pharma sugar, icing sugar, liquid sugar etc.

B. Credit Risk

Credit risk is the risk that counter party will default on its obligations under a Contractual arrangement
leading to a financial loss. The company's sugar sales are mostly on advance payment basis. Power and
ethanol are sold to state government companies and petroleum companies; thereby the credit default risk is
significantly mitigated. Company has also taken advances and security deposits from its customers / agents,
which mitigate the credit risk to an extent Financial assets are written off when there is no reasonable
expectation of recovery, however, the company continues to attempt to recover the receivables. Where
recoveries are made, these are recognized in the statement of profit and loss.

Balances with Banks - Other Financial Assets

Credit risk from balances with banks is managed in accordance with Company's policy. Company considers
factors such as track record, size of the institution, market reputation and service standards to select the banks
with which term deposits are maintained. Generally, term deposits are maintained with banks with which
Company has also availed borrowings.

The Company's maximum exposure to credit risk for the components of the balance sheet as at 31⁵¹ March, 2026
and 31^st March, 2025 is the carrying amounts as stated under Note No. 10.

C. Liquidity risk

i. Liquidity Risk Management

Liquidity risk is the risk that a company may encounter difficulties in meeting its obligations associated
with financial liabilities that are settled by delivering cash or other financial assets. The Company's
objective is to maintain optimum levels of liquidity to meet its cash and its collateral requirements. The
company's Management is responsible for liquidity funding as well as settlement. Management monitors
the company's net liquidity position through rolling forecast on the basis of expected cash flows.

ii. Maturities of financial liabilities

The table below provides undiscounted cash flows towards financial liabilities into relevant maturity based
on the remaining period at the balance sheet to the contractual maturity date.

Note No. 36 : Capital Management
a) Risk Management

For the purpose of the Company's capital management, capital includes issued equity capital, securities premium
and all other equity reserves attributable to the equity shareholder of the Company. The Primary objective of
capital management is to maximize shareholder value and also to maintain an optimum capital structure and to
safeguard its ability to continue at a going concern.

The Company's Capital management objectives are to maintain equity including all reserve to protect economic
viability and to finance any growth opportunities that may be available in future so as to maximize shareholder
value.

b) Loan Covenants:

In order to achieve this overall objective, the Company's capital management, amongst other things, aims to
ensure that it meets financial covenants attached to the interest bearing loans and borrowing that define capital
structure requirements. The company has compiled with these covenants and there have been no breaches in
the financial covenants of any interest - bearing loans and borrowings.

No changes were made in the objectives, policies or processes for managing capital during the year ended 31st
March 2026 and 31^st March, 2025.

Note No. 37: Other disclosures

a. The Company has utilized the borrowings from banks for the specific purpose for which they were taken from banks.

b. The Company has during the year sanctioned working capital limits in excess of ' 5 crore, in aggregate, from
banks on the basis of pledge of sugar stocks, the quarterly returns or statement filed by the company they are
in agreement to books of account except value of inventory of pledged sugar provided to bank which is valued
in accordance with terms and condition of sanction letter at average Net realizable value whereas in the books
of account same has been in considered at lower of Cost or Net realizable value in accordance with the Indian
Accounting Standard

e. The company does not have any transactions or balances with the companies struck off under section 248 of the
Companies Act, 2013 or section 560 of Companies Act, 1956 during the year and previous year.

f. During the year, there are no instances of any registration, modification or satisfaction of charges which are
pending for registration with Registrar of Companies beyond the statutory period.

g. The Company is in compliance with the relevant provisions of the Companies Act,2013 with respect to the
number of layers prescribed under clause (87) of section 2 of the Companies Act, 2013 read with the Companies
(Restriction on number of layers) Rules, 2017.

h. The Company has not traded or invested in any crypto currency or virtual currency during the year and previous
year.

i. The Company have 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:¬
- 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

- Provide any guarantees, security or the like on behalf of the ultimate beneficiaries.

j. The Company have not received any fund from any other person(s) or entity (ies), including foreign entities
(funding party) with the understanding (whether recorded in writing or otherwise) that the group shall: -

- directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the funding party (ultimate beneficiaries) or

- Provide any guarantees, security or the like on behalf of the ultimate beneficiaries.

k. The Company does not have any transaction not recorded on books of accounts that has been surrendered or
disclosed as income during the year and previous year in the tax assessments under the income Tax Act,1961.

l. Key Financial Ratios is as under:-

Note:- Fair Value hierarchy

The fair value of the financial assets and financial liabilities are included at the amount at which the instrument could
not be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

Fair value of cash and cash equivalents, bank balances other than cash and cash equivalents, trade and other
receivables, loans and other current financial assets, short term borrowings from banks and financial institutions, trade
and other payables and other current financial liabilities approximate their carrying amounts due to the short term
maturities of these instruments.

Note No. 39 :

The previous year figures have been reworked, regrouped, rearranged and reclassified wherever necessary. The
figures are rounded off to nearest rupee in lakhs up to two decimals.