Note:

1. The future cash flows for the aforesaid contingent liabilities are determinable on receipt of judgements pending at various forums/authorities which in the opinion of the Company is not tenable and there is no possibility of any future cash outflow in case of above.

2. The Company has received an order dated 25^th March 2025, from the Deputy Commissioner of Income Tax under Section 153C read with Section 144 of the Income Tax Act, 1961, raising a demand of ' 1,553.23 lakh for FY 2017-18 (AY 2018-19) based on a substantive addition of ' 858.00 lakh, and a demand of ' 1,370.37 lakh for FY 2018-19 (AY 2019-20) based on a protective addition of ' 887.50 lakh, both under Section 69A read with Section 115BBE. The Company has challenged the proceedings before the Hon'ble Madhya Pradesh High Court, which has directed the authorities not to implement the AY 2018-19 order without the Court's permission, while the matter for AY 2019-20 remains pending. As per the principles of Ind AS 37, the substantive addition involves a possible but not probable outflow of resources and is therefore disclosed as a contingent liability. The protective addition does not result in any enforceable demand unless the substantive addition fails, and no present obligation exists against the Company; hence, it is not considered a contingent liability.

3. The office of the Director General (DG) of the Competition Commission of India (CCI) conducted a search on 27^th October 2021 at the Company's registered office to examine the process of supply and sale of the Company's Indian Made Indian Liquor ("IMIL”) products. On receipt of order from the CCI based on the investigation report of the DG alleging cartelisation in the supply of IMIL products, the company had earlier challenged the jurisdiction of the CCI on the aforesaid order before the Hon'ble Delhi High Court and based on the direction of the court, took the matter subsequently with CCI. During the earlier year, the company received an order dated 20^th March 2024 in which CCI has referred back the investigation report to DG for further investigation. The CCI has also instructed the DG to facilitate the Company with a copy of the statement recorded and crossexamine the persons who had alleged the cartelisation as mentioned in the investigation report. Thereafter, the company has filed a writ before the Hon'ble Madhya Pradesh High Court on the grounds of CCI's jurisdiction and challenging the incidental action in the matter. The matter is seized with the Hon'ble High Court, and the court has directed CCI not to take any coercive action until the matter is pending before the Hon'ble High Court. Since the company has not received a penalty order specifying the amount of penalty, the amount can not be ascertained. Further, based on the risk assessment process, the company is confident in the merits of its case.

Note 45: Segment reporting

(a) Segment Information:

For management purposes, the Company is organised into business units based on its products and services and has two reportable segments, as follows:

- The Potable Alcohols segment is involved in the production and sale of Indian Made Foreign Liquor (IMFL), Indian Made Indian Liquor (IMIL), and Extra Neutral Alcohol (ENA). Further, this segment also provides manufacturing services related to these products. This segment caters to various consumer preferences and ensuring a comprehensive presence in the alcoholic beverage market.

- The Ethanol segment is involved in the production and distribution of grain-based ethanol, primarily supplying it to Oil Marketing Companies in India for blending with petrol.

No operating segments have been aggregated to form the above reportable operating segments.

The Executive Management Committee is the Chief Operating Decision Maker (CODM) and monitors the operating results of its business units 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. Also, the Company's financing (including finance costs and finance income) and income taxes are managed on a Company basis and are not allocated to operating segments.

Adjustments and eliminations

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 on a company basis.

Current taxes, deferred taxes and certain financial assets and liabilities are not allocated to those segments as they are also managed on a company basis.

Capital expenditure consists of additions of property, plant and equipment, Capital Work-In-Progress, intangible assets and Right of Use Assets.

The fair value measurement hierarchy of all financial assets and liabilities is provided in Note 47.

The management assessed that fair value of investment, trade receivables, other current financial assets, current loans, cash and bank balances, trade payables, current borrowings and other current financial liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values:

1. Security deposits, loans and other financial assets are evaluated by the Company based on parameters such as interest rates, individual credit worthiness of the counterparties and expected duration of realisability as at the balance sheet date.

2. The fair value of long-term bank borrowings is estimated by discounting future cash flows using rates currently available for debt on similar terms, credit risk and remaining maturities. Management regularly assesses a range of 'possible alternatives for those significant unobservable inputs and determines their impact on the total fair value.

Level 3: The fair value of financial instruments that are measured on the basis of entity specific valuations using inputs that are not based on observable market data (unobservable inputs).

There are no transfers between different fair value hierarchy levels in 31^st March 2026 and 31^st March 2025.

Fair value measurements

The following table shows the valuation technique used in measuring level 3 values for financial instruments

The fair value of investment in Mount Everest Breweries Limited ('MEBL') has been considered based on the valuation report by the registered valuer considering the projections provided by the management of the MEBL.

Note 48: Financial risk management objectives and policies

The Company's principal financial liabilities comprise borrowings, lease liabilities, trade, and other payables. The main purpose of these financial liabilities is to finance the Company's operations. The Company's principal financial assets include investment, loans, cash and cash equivalents, trade receivables, and other receivables derived directly from its operations.

The Company is exposed to market risks, credit risks and liquidity risks. The Company's senior management oversees the management of these risks. The Company's senior management provides assurance that the Company's financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company's policies and risk objectives. The Board of Directors review and agree policies for managing each of these risks.

Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risks namely interest rate risk, currency risk and price risk, such as equity price risk. The Company is not significantly exposed to currency risk and price risk whereas the exposure to interest risk is given below.

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 borrowings.

Interest rate sensitivity

The sensitivity analysis below have been determined based on exposure to interest rates for term loans that have floating rate at the end of the reporting period and the stipulated change taking place at the beginning of the financial year and held constant throughout the reporting period.

a. Trade receivables

Customer credit is managed by the Company's through established policies and procedures related to customer credit risk management. Each outstanding customer receivables are regularly monitored and if outstanding is above due date, the further shipments are controlled and can only be released if there is a proper justification.

The Company uses a provision matrix to determine impairment loss allowance on portfolio of its trade receivables. The provision matrix is based on its historically observed default rates over the expected life of the trade receivables and is adjusted for forward-looking estimates. At every reporting date, the historical observed default rates are updated and changes in the forward-looking estimates are analysed. Based on the industry practices and the business environment in which the Company operate, management considers the trade receivables are in default (credit impaired) if the payments are more than 365 days past due.

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 and are monitored at periodical intervals. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets.

Liquidity Risk

(i) Liquidity risk management

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 principal sources of liquidity are investment, cash and bank balances, fixed deposits, and the cash flow generated from operations. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities. The Company believes that the working capital is sufficient to meet its current requirements. Accordingly, liquidity risk is considered as low. The Company closely monitors its liquidity position and maintains adequate funding sources.

Note 50: Capital management

The Company's objective in managing its capital is to ensure continuity of business while at the same time providing reasonable returns to its various stakeholders but keeping associated costs under control. In order to achieve this, the requirement of capital is reviewed periodically with reference to operating and business plans that take into account capital expenditure and strategic investments. Sourcing of capital is done through a judicious combination of equity/ internal accruals and borrowings, both short-term and long-term. Net debt (total borrowings less cash and cash equivalents, Bank Balance and Investment through FVTPL) to equity ratio is used to monitor capital.

Note 52: Government Grant

1. The Government of India vide its notification No. - F. No.1(10)/2018-SP-I dated 22-Apr-2022, notified the modified scheme for extending financial assistance to the project proponents to set up distilleries for producing 1^st Generation (1G) ethanol from feedstock such as cereals (rice, wheat, barley, corn and sorghum), sugarcane, sugar beet etc. Under the said scheme, the Government of India has approved the interest subvention @6% per annum or 50% of the rate of interest charged by the bank, whichever is lower. The company is eligible for the above grant on its term loan of ' 8,000.00 lakhs sourced by the company from HDFC Bank Limited for the new ethanol plant.

Pursuant to the requirements of Ind AS 20 - "Accounting for Government Grants and Disclosure of Government Assistance” and Ind AS 109 - "Financial Instruments”, ' Nil (31^st March 2025 : ' Nil lakhs) has been credited to the property plant and equipment related to ethanol plant (Refer Note 5), ' 130.30 lakhs (31^st March 2025 : ' 231.31 lakhs) has been adjusted with interest cost (Refer Note 35). Further out of the total grant accounted, ' 415.17 lakhs (31^st March 2025: ' 459.87 lakhs) is pending to be received from the government (Refer Note 18).

2. The Government of Madhya Pradesh, vide Notification No. 16-36/2021/A-11 dated 17^th September 2022, notified a scheme for special financial assistance for ethanol and bio-fuel production from all food grains (excluding sugarcane/molasses and Mahua), under the National Policy on Biofuels, 2018, as approved by the National Biofuel Coordination Committee.

Under the said scheme, the State Government shall provide production-linked fiscal assistance of ' 1.50 per litre of ethanol supplied to OMCs, subject to a maximum cap of 100% of the eligible investment in plant and machinery. The benefit is available for a period of seven years from the date of commencement of commercial production.

The Company has submitted the necessary applications and is in compliance with the eligibility conditions prescribed under the scheme. Accordingly, the Company expects to receive the incentive against its total eligible investment of ' 17,882.23 lakhs in plant and machinery of the ethanol manufacturing facility. The incentive is being accounted for in accordance with the applicable provisions of Ind AS 20 - Accounting for Government Grants and Disclosure of Government Assistance and Ind AS 109 - Financial Instruments.

During the year, ' 396.08 lakhs (31^st March 2025: ' 606.92 Lakhs) has been accounted as income (Refer Note 30). Further out of the total grant accounted during the year, ' 1002.99 lakhs (31^st March 2025: ' 606.92 Lakhs) is pending to be received from the government (Refer Note 18).

Note 53: Other disclosures

The Company has used accounting software and payroll software to maintain its books of account which includes a feature for recording an audit trail (edit log) facility and has operated throughout the year for all relevant transactions. The audit trail functionality at the application server level was active during the year for both the softwares. The audit trail at the database level for direct data access in the accounting software was enabled during the financial year from 1^st July 2025 and maintained subsequently. Further, there are no instances of the audit trail feature being tampered with. Additionally, the audit logs have been preserved in accordance with statutory record retention requirements, wherever the same was enabled.

Note 54: Other Statutory Information

(i) The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

(ii) The Company have not traded or invested in Crypto currency or Virtual Currency during the current financial year and previous financial year

(iii) 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:

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

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

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

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

(v) The Company do not have any such transactions which has not been recorded in the books of accounts but has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961

(vi) The company has not been declared as wilful defaulter by any bank of financial institution or other lender

(ix) The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

(x) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Companies Act, 2013 read with Companies (Restriction on number of Layers) Rules, 2017.

Note 55: Approval of Standalone Financial Statement

The Board of Directors have approved the standalone financial statements for the year ended 31^st March 2026 and authorised them for issue on 18^th May 2026 and these will be placed for the approval of shareholders at the ensuing annual general meeting.