4.12. Provisions, Contingent Liabilities and Contingent Assets

A provision is recognised when the Company has a present obligation as a result of past events and it is probable that an
outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions
(excluding retirement benefits) are not discounted to their present value and are determined based on the best estimate
required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted
to reflect the current best estimates.

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 outflow of resources will be required to settle the
obligation. A contingent liability is not recognized but its existence is disclosed in the financial statements. Contingent
assets are not recognised and disclosed only when an inflow of economic benefits is probable in the financial statements.

4.13. Taxation

Tax expense comprise of current and deferred tax. Current income tax comprises taxes on income from operations in
India and in foreign jurisdictions. Income tax payable in India is determined in accordance with the provisions of the
Income Tax Act, 1961.

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial
statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally
recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible
temporary differences to the extent that it is probable that taxable profits will be available against which those deductible
temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary
difference arises from the initial recognition (other than in a business combination) of assets and liabilities in a transaction
that affects neither the taxable profit nor the accounting profit. The carrying amount of deferred tax assets is reviewed at
the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will
be available to allow all or part of the asset to be recovered. Deferred tax assets and liabilities are measured using the
tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.

Current and deferred tax are recognised in Statement of Profit and Loss, except when they relate to items 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.

Advance taxes and provisions for current income taxes are presented in the balance sheet after offsetting advance taxes
paid and income tax provisions arising in the same tax jurisdiction and the Company intends to settle the asset and liability
on a net basis. The Company offsets deferred tax assets and deferred tax liabilities if it has a legally enforceable right and
these relate to taxes on income levied by the same governing taxation laws.

4.14. Borrowing Costs:

Borrowings are recognized initially at fair value net of transaction costs incurred. Borrowings are subsequently stated at
amortized cost any difference between proceeds (net of transaction costs) and the redemption value is recognized in
the statement of profit and loss over the period of the borrowings using the effective interest method.

Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the
liability for at least 12 months after the balance sheet date.

Borrowing costs are recognised as an expense in the period in which they are incurred except the borrowing cost
attributable to the acquisition / construction of a qualifying asset which are capitalised as part of the cost of such asset,
up to the date, the asset are ready for their intended use.

4.15. Segment Reporting:

The Company identifies segments as operating segments whose operating results are regularly reviewed by the Chief
Operating Decision Maker [CODM] to make decisions about resources to be allocated to the segment and assess its
performance and for which discrete financial information is available. The CODM is responsible for allocating resources
and assessing performance of the operating segments of the Company. The accounting policies adopted for segment
reporting are in line with the accounting policies of the company.

4.16. Earnings Per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders
(after deducting attributable taxes, if any) by the weighted average number of equity shares outstanding during the
period. Partly paid equity shares are treated as fraction of an equity share to the extent that they are entitled to participate
in dividends relative to a fully paid equity share during the reporting period. The weighted average number of equity
shares outstanding during the period is adjusted for events such as bonus issue, bonus element in right issue, share split
and reverse share split (consolidation of shares) that have changed the number of equity shares outstanding, without a
corresponding change in resources.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity
shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of
all dilutive potential equity shares.

4.17. Events after reporting date

Adjusting events (that provides evidence of condition that existed at the balance sheet date) occurring after the balance
sheet date are recognized in the standalone financial statements. Material non adjusting events (that are inductive of
conditions that arose subsequent to the balance sheet date) occurring after the balance sheet date are disclosed in the
Board's Report.

4.18. Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit / (loss) before tax is adjusted for the effects of
transactions of noncash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows
from operating, investing and financing activities of the Company are segregated based on the available information.

4.19. Current versus Non-Current Classification

The Company presents assets and liabilities in the balance sheet based on current/non-current classification. An asset is
treated as current when it is:

(a) expected to be realised in, or is intended to be sold or consumed in Company's normal operating cycle;

(b) held primarily for the purpose of being traded;

(c) expected to be realised within 12 months after the reporting date; or

(d) cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least 12 months after
the reporting date.

All other assets are classified as non-current.

A Liability is current when:

(a) it is expected to be settled in Company's normal operating cycle;

(b) it is held primarily for the purpose of being traded;

(c) it is due to be settled within 12 months after the reporting date; or

(d) The Company does not have an unconditional right to defer settlement of the liability for at least 12 months after the
reporting date.

All other liabilities are classified as non-current.

4.20. Operating Cycle:

All assets and liabilities have been classified as current or non-current as per the company's normal operating cycle and
other criteria set out in Schedule III to the Companies Act, 2013. Based on the nature of product and the time between
acquisition of assets for processing and their realization in cash and cash equivalents, the company has ascertained its
operating cycle as 12 months for the purpose of current/non-current classification of assets and liabilities.

4.21. Goods and Service Tax:

Goods and service tax is accounted for in the books of accounts in accordance with the provisions of the goods and
service tax law for the time being in force, and the liability or the credits are accordingly disclosed in the financial
information.

4.22. General:

Any other accounting policy not specifically referred to are in consistent with the generally accepted accounting
principles.

4.23. Recent Accounting Pronouncement

The Ministry of Corporate Affairs (MCA), as part of India's continued convergence with IFRS, has initiated the process for
introduction of Ind AS 118 - Presentation and Disclosure in Financial Statements, which is converged with IFRS 18 issued by
the IASB in April 2024. Ind AS 118 is intended to replace Ind AS 1 (Presentation of Financial Statements) and focuses on
improving how entities present and communicate financial performance, particularly in the Statement of Profit and Loss.
This standard is proposed to be applicable for annual reporting periods beginning on or after April 01,2027, subject to final
notification by the MCA through amendment to the Companies (Indian Accounting Standards) Rules.

(i) During the year ended March 31, 2026, the Company has made investments in Parth Renewable Energy LLP & Asia Bio

Fule LLP, holding a 55% share in each LLP.

(ii) During the year ended March 31,2024, the Company and its nominees have subscribed:

(a) 1,00,000 equity shares in Kotyark Bio Specialities Limited (KBSL) for an aggregate consideration of ? 10.00 Lacs. The
equity shares held by Parent Company represents 81.63% legal and beneficial ownership of the total paid up share
capital of KBSL.

(b) 1,00,000 equity shares in Semani Industries Limited (SIL) for an aggregate consideration of ?10.00 Lacs. The equity
shares held by Parent Company represents 100% legal and beneficial ownership of the total subscribed share capital
of SIL.

16.4 Aggregate number of Shares allotted as fully paid up by way of bonus shares during the period of 5 years immediately
preceding year:

During the year ended on 31st March, 2022, the Company has allotted 40,44,600 bonus shares of ? 10 each fully paid-
up. Consequently, the Company has capitalised a sum of ? 404.46 lakhs from "Retained earnings" and "Securities
Premium" pursuant to the approval of the shareholders through circular resolution dated July 24, 2021.

16.5 Aggregate number of Shares allotted as fully paid up pursuant to scheme of amalgamation without payment being
received in cash during the period of 5 years immediately preceding year:

During the year ended on 31st March, 2023, the Company has allotted 9,09,216 equity shares of ? 10 each fully paid-up
(Refer note 53).

16.6 The Board of Directors at its meeting held on April 27, 2026, has proposed a final dividend of ? 5.00 per equity share i.e.,
50% on face value of ? 10.00 per equity share for the Financial Year 2025-26. This payment is subject to approval by
shareholders in the ensuing Annual General Meeting of the Company.

16.7 'The Board of Directors of the Company had recommended a final dividend of ? 1.00 per equity share (i.e., 10% on the
face value of ? 10 per equity share) for the financial year 2024-25, subject to the approval of the shareholders at the
ensuing Annual General Meeting. The shareholders of the Company at the Annual General Meeting held on September
29, 2025 approved a final dividend of ? 1.00 per equity share (i.e., 10% on the face value of ? 10 each) for the financial
year 2024-25. Pursuant to a request from the promoter group, the promoters holding 69,65,022 equity shares have
voluntarily relinquished their right to receive the dividend, amounting to ? 69.65 lakhs in accordance with the provisions
of the Companies Act, 2013 and the Articles of Association of the Company. Accordingly, the Company has paid final
dividend for the year 2024-25 to the shareholders (other than promoter group who have waived) holding 33,14,094
equity shares aggregating to ? 33.14 lakhs."

16.8 The Board of Directors of the Company, at its meeting held on October 29, 2024, has declared and paid an interim
dividend of ? 7.50 per equity share i.e. 75% on face value of ? 10.00 per equity share.

(i) The term loan is secured by hypothecation of entire Movable and Immovable Machineries, Equipment, Electrical Installations, Furniture
& Fixtures, Office Equipment and other Movable Fixed Assets of Company.

(ii) The Tanker Loans are secured against by hypothecation of Tankers purchased out of Bank loan and the same is also Secured by Personal
Guarantee of Director of Company i.e. Mr. Gaurang Shah.

(iii) The Tanker Loans are secured against hypothecation of tankers purchased out of Bank Loan.

(iv) The Vehicle Loans are Secured by hypothecation of vehicle. The said loan was availed by Yamuna Bio Energy Private Limited (YBPL)
(Since amalgamated with the company w.e.f. 1st April, 2022). The loan was availed in the name of Mr. Brij Shah, relative of Directors of
the company. The said loan is still continuing in the aforesaid names.

(v) The Loan from Hinduja Leyland Finance Limited is in the nature of "Loan against Property (LAP)", which is secured against security of
immovable properties situated at Flat No. A/403, C/103, C/104, C/203, C/204 and C/304, Shilpi Dreams, Bharuch owned by erstwhile YBPL.

(vi) The Term Loan under BGCEL facility is secured by hypothecation of machinery, equipment and other movable fixed assets of the firm
situated at Survey No 69, Padgol, Petlad, Dist. Anand. The said loan was availed by Yamuna Bio Energy Private Limited (YBPL) (Since
amalgamated with the company w.e.f. 1 st April, 2022). The said loan is still continuing in the name of YBPL.

(vii) The unsecured loans from directors are non-interest bearing and not repayable within twelve months from the end of financial year. The
unsecured loan from the subsidiary i.e., Kotyark Bio Specialities Limited, carries an interest @ 7 % p.a and is repayable on demand.

18.2 The Company has used the borrowings from banks and financial institutions for the specific purpose for which it was
taken at the balance sheet date.

18.3 There were no charges or satisfaction to be registered with ROC Ahmedabad beyond statutory period except:

18.4 The Company is not declared as wilful defaulter by any bank or financial Institution or other lender.

18.5 The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign
entities (Intermediaries) with the understanding that the Intermediary shall (i) 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 (ii) provide any
guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

18.6 "The Company has not received any fund from any person or entity, including Foreign entities (Funding Party), with the
understanding that the Company shall

(i) directly or indirectly lend or invest in other person or entities (Ultimate Beneficiary) by or on behalf of Funding Party or

(ii) provides any guarantee or security on behalf of the Ultimate Beneficiary."

18.7 Current Notes:

(i) Cash Credit Facility availed from Bank of Baroda is repayable on demand and is secured by way of hypothecation of
stocks book debts upto 90 days.

(ii) Bill discounting Facilities is secured against letter of bills purchase undertaking (LDOC - 30), letter of pledge of govt. securities
(LDOC - 11) and demand/usance documentary bills having tenure no exceeding -45 days, accompanied by all dispatch
documents evidencing genuine sale of good via. invoice, bill of exchange, transport operator/railway receipt or accepted
delivery challans/ e-bills.

The Company has prepared the opening balance sheet as per Ind AS as of April 1,2024 (the transition date) by recognising all assets
and liabilities whose recognition is required by Ind AS, not recognising items of assets or liabilities which are not permitted by Ind AS, by
reclassifying items from previous GAAP to Ind AS as required under Ind AS and applying Ind AS in measurement of recognised assets
and liabilities. However, this principle is subject to the certain exception and certain optional exemptions availed by the Company as
detailed below.

Estimates

The entity’s estimates in accordance with Ind ASs at the date of transition to Ind AS shall be consistent with estimates made for the
same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is
objective evidence that those estimates were in error.

Upon an assessment of the estimates made under previous GAAP, the Company has concluded that there was no necessity to revise
such estimates under Ind AS, except where estimates were required by Ind AS and not required by previous GAAP.

Classification and measurement of financial asset

The Company has assessed classification and measurement of financial assets on the basis of facts and circumstances that exist at
the date of transition to Ind AS.

Deemed cost for property, plant and equipment and intangible assets

The Company has elected to continue with the carrying value of all of its Property, Plant and Equipment and Intangible assets

B. All the assets of the Company and total Capital expenditure incurred during the year to acquire property, plant and equipment and
intangi ble assets in geographical segment is disclosed in Note 5 are located within India except mentioned above.

Information about major customers

There are three (Previous Year - three) customers to the company which accounts for more than 10% of aggregate sales. Net sales
made to this customer amounts to ? 22,135.95 lakhs (P.Y 22,404.94 Lakhs).

42. Disclosures pursuant to employee benefits

C. Defined Contribution Plan

Amount of ? 34.40 Lakhs (March 31, 2024: ? 30.33 lakhs) is recognised as expenses and included in Note No. 31 "Employee
benefits expense"

Note: Fair value of financial assets and liabilities measured at amortized cost is not materially different from the amortized cost. Further,
impact of time value of money is not significant for the financial instruments classified as current. Accordingly, the fair value has not
been disclosed separately.

Types of inputs for determining fair value are as under:

Level 1: It includes Investment in equity shares that has a quoted price and which are actively traded on the stock exchanges. It is been
valued using the closing price as at the reporting period on the stock exchanges. It also include mutual funds that are redeemable at
any time and report a daily net asset value (NAV) and for which sufficient subscriptions and redemptions occur at NAV.

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

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

B. Measurement of fair values

i) Valuation techniques and significant unobservable inputs

There are no items in level 2 and level 3 fair values.

ii) Transfers between Levels 1 and 2

There have been no transfers between Level 1 and Level 2 during the reporting periods

The Company’s financial liabilities comprise mainly of borrowings, trade and other payables. The Company’s financial assets comprise
mainly of investments, cash and cash equivalents, other balances with banks, trade receivables and other receivables. The Company
is exposed to Market risk, Credit risk and Liquidity risk. The Company's Board of Directors has overall responsibility to review the risk
management plan and ensure its effectiveness.

(i) Credit risk

Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a
financial loss. The Company is exposed to credit risk primarily trade receivables and other financial assets including deposits with banks.
The maximum credit exposure associated with financial assets is equal to the carrying amount. Details of the credit risk specific to the
company along with the relevant mitigation procedures adopted have been enumerated below:

Trade and other receivables

The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management
also considers the factors that may influence the credit risk of its customer base. Majority of the customers have been associated with
the company for a considerable period of time. Company has established a credit policy under which each new customer is analyzed
individually for creditworthiness before the Company’s standard payment and delivery terms and conditions are offered.

An impairment analysis is performed at each reporting date based on the facts and circumstances existing on that date to identify
expected losses on account of time value of money and credit risk.

Other financial assets

Other financial assets include loans to employees, security deposits, cash and cash equivalents, other bank balance, Investments, etc.
which are not exposed to any credit risk.

• Cash and cash equivalents and Bank deposits are placed with banks having good reputation and past track record with adequate
credit rating.

• Investments are made in Group companies, does not have exposure to any credit risk. Investments made in banks are credit worthy
entities, accordingly does not exposure to any credit risk.

(ii) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in raising funds to meet commitments associated with financial
instruments that are settled by delivering cash or another financial asset. Liquidity risk may result from an inability to sell a financial asset
quickly at close to its fair value. The Company's objective is to, at all times maintain optimum levels of liquidity to meet its cash and
collateral requirements. The Company closely monitors its liquidity position and deploys a robust cash management system.

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.

(iii) 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: currency risk, interest rate risk and other price risk. Financial instruments affected by market
risk includes borrowings, trade payables, trade receivables and loans. There are no investments in equity instruments other than
investment in subsidiaries and hence company is not exposed to any price risk. Further, all operations of the comapony are in India and
hence comapny is not exposed to any currency risk.

(iv) Interest rate risk

Interest rate risk is the risk that the future cash flow with respect to interest payments on borrowing will fluctuate because of change in
market interest rates. Interest rate affects short term borrowings therefore the company's exposure to the risk of changes in market
interest rates is tabulated as under:

45. Capital Management

For the purpose of the Company’s capital management, capital includes paid-up equity capital and all other equity reserves attributable
to the equity holders of the Company. The primary objective of the Company’s capital management is to ensure that it maintains a strong
capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. Management
monitors the return on capital, as well as level of dividends to equity shareholders.

The Company manages its capital structure and makes adjustments to it in the light of changes in economic conditions and the requirements
of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return
capital to shareholders or issue new shares. The Company monitors capital using Debt-Equity ratio, which is net debt divided by total equity.
Debt is defined as liabilities comprising interest-bearing loans and borrowings, lease liabilities less cash and bank balances. Adjusted equity
comprises all components of equity.

Other Statutory Information

46. The Company has not granted any Loans or Advances in the nature of loans to Promoters, Directors, KMP's and related parties which
are repayable on demand or given without specifying terms or period of repayment.

47. The Company does not hold any Benami Property under the Benami T ransactions (Prohibition) Act, 1988.

48. The Company has not entered into any transactions with companies struck off under section 248 of the Companies Act, 2013 or section
560 of Companies Act, 1956.

49. The Company has not made any Investment in violation to the provisions related to 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, 201 7.

50. The Company has not traded or invested in Crypto Currency or Virtual Currency.

51. The Company has no such transactions that are not recorded in the books of accounts that has been surrendered or disclosed as
income during the year in the tax assessments under the Income Tax Act, 1961.

52. (a) The Company has manufacturing facilities located at Padgol (Gujarat) and Swaroopganj (Rajasthan). The Company’s registration
with the Bio-Fuel Authority, Government of Rajasthan, was valid up to July 31,2022. The Company applied for renewal on July 06, 2022.
As the renewal was delayed, the Company filed a writ petition before the Hon’ble Rajasthan High Court. The Hon’ble Court directed
the Company to remove certain deficiencies and file a fresh application within one week, and further directed the authorities to take
a decision within three weeks. The Company complied with these directions and submitted all required documents within the stipulated
time. Despite such compliance, the renewal was not granted, and the matter remained pending. Consequently, the Company filed
another writ petition before the Hon’ble Rajasthan High Court.

(b) During the pendency of this petition, on July 02, 2025, a team of officials, including a Hon’ble Minister, inspected the Swaroopganj
unit, seized four storage tanks containing raw material (Veg Ester) aggregating to 6,84,000 Litre, and initiated criminal proceedings
against one of the Directors of the Company. The Company approached the Hon’ble Rajasthan High Court, which, vide order dated
August 26, 2025, permitted continuation of operations for fulfillment of supply commitments to Oil Marketing Companies (OMCs). The
director of the company also filed Writ petition to quash the criminal proceeding and the Hon. Rajasthan High Court vide order dated
August 06, 2025 stayed the criminal proceeding. Thus Company continues to operate its Swaroopganj unit and supply to OMCs in
compliance with applicable laws.

(c) The value of the seized raw material continues to be reflected as inventory in the accompanying financial results, as the
management is confident of its release and subsequent utilization in the normal course of production. The management confirms that
there has been no loss of production or disruption in supplies and remains confident of a favourable outcome in the matter.

53. The Board of Directors at its meeting held on August 10, 2022, approved a Scheme of Amalgamation ("Scheme") for amalgamation of
Yamuna Bio Energy Private Limited ("YBPL" ) with Kotyark Industries Limited ( "KIL / Company" ), and their respective shareholders and
creditors, under Section 230 to 232 of the Companies Act, 2013 and other applicable laws including the rules and regulations. The
Scheme was approved by shareholders at the National Company Law Tribunal ( NCLT ) convened meeting of shareholders of the
Company held on June 09, 2023. The NCLT, in accordance with Sections 230 to 232 of the Companies Act, 2013 and rules thereunder,
vide its order Dated December 12, 2023 Sanctioned the Scheme. Upon receipt of all requisite approvals, the Company has filed form
INC 28 Registrar of Companies on December 26, 2023 and accordingly the scheme became effective on December 26, 2023. As per
Scheme, the appointed date for amalgamation is April 1, 2022.

The amalgamation has been accounted under the ‘pooling of interest’ method as prescribed in AS-14“Accounting for amalgamation"
(“AS-14”). Outstanding balances between YBPL and KIL were Eliminated as on April 01,2022. All the assets and liabilities of YBPL have
been recognised by the Company at their carrying amounts as on that date except for adjustments to bring about uniformity of
accounting policies as required under AS-14. The share capital of ? 90.92 Lakhs issued by the Company as consideration pursuant to
the Scheme, has been adjusted against the corresponding Share Capital of YBPL of ? 649.44 lakhs and the difference has been adjusted
to Retained Earnings. Consequently, the Company has recognized a credit balance of ? 558.52 Lakhs in the Retained Earnings as a
result of all these adjustments.

Consequent upon amalgamation become effective, the authorised share capital of the YBPL shall be added to that of KIL. In terms of
Scheme the Company has issued and allotted 9,09,216 equity shares to the shareholders of YBPL as on February 23, 2024, being the
record date fixed by the board of directors as per the scheme, in accordance with the share exchange ratio i.e. 14 equity shares of
face value of ? 10/- each of the KIL for every 100 equity shares of face value of ? 10/- each of YBPL.

54. The Company has used accounting software for maintaining its books of accounts for the year ended on March 31,2026 which has a
feature of recording audit trail [edit log] facility and the same has been operational throughout the year for all relevant transactions
recorded in the software. Audit trail has been preserved by the company as per statutory requirements for record retention.

55. In the opinion of the Board, assets such as loans and advances, trade receivables and other current and non-current assets do not
have a value on realisation in the ordinary course of business lesser than the amount at which they are stated.

56. No transactions recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax
assessments under the Income Tax Act, 1961.

Previous year's figures have been regrouped and rearranged where necessary to conform to the current year's classification.