24. Provisions

Accounting Policy

(a) Employee benefits - refer note 30

(b) Other Provisions

The amount recognised as a provision is the best estimate of the consideration required to settle the
present obligation at the balance sheet date, taking into account the risks and uncertainties surrounding the
obligation. The amount recognised as a provision is the best estimate of the consideration required to settle
the present obligation at the balance sheet date, taking into account the risks and uncertainties surrounding
the obligation. Where a provision is measured using the estimated cash flows to settle the present obligation,
its carrying amount is the present value of those cash flows. The discount rate used is a pre-tax rate that
reflects current market assessments of the time value of money in that jurisdiction and the risks specific
to the liability.

The amortisation or “unwinding” of the discount applied in establishing the provision is charged to the income
statement in each accounting period. The amortisation of the discount is shown within finance costs in the
Statement of profit or loss.

24. Provisions (Contd.)

The Company has clasified the various benefits provided to employees as under:

A. Defined contribution plan

The Company makes contributions, determined as a specified percentage of employee salaries, in
respect of qualifying employees towards Provident and Pension Fund and Employee State Insurance
('ESI') which are defined contribution plans. The Company has no obligations other than to make the
specified contributions. The contributions are recognised in the Standalone Statement of Profit and Loss
as they accrue.

The expense for defined contribution plans amounts to J 405.59 Lakhs (31 March 2024: H 371.60 Lakhs). Out
of these, J 394.83 Lakhs (31 March 2024: H358.06 Lakhs) pertains to provident fund plan and J 10.76 Lakhs
(31 March 2024: H 13.54 Lakhs) pertains to ESI.

B. Defined benefits - Gratuity

The Company's gratuity benefit scheme for its employees in India is a defined benefit plan (funded).

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972.
Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount
of gratuity payable on retirement/ termination is the employees last drawn basic salary per month
computed proportionately for 15 days salary multiplied for the number of years of service. The gratuity
plan is a funded plan and the Company makes contributions to recognised funds in India.

Inherent risk

The plan is defined benefit in nature which is sponsored by the Company and hence it underwrites all
the risk pertaining to the plan. In particular, this exposes the Company, to actuarial risk such as adverse
salary growth, change in demographic experience, inadequate return on underlying plan assets. This
may result in an increase in cost of providing these benefits to employees in future. Since the benefits
are lump sum in nature, the plan is not subject to longevity risk. These defined benefit plans expose the
Company to actuarial risks, such as interest rate risk, salary inflation risk, demographic risk and market
(investment) risk.

The following tables analyse present value of defined benefit obligations, expense recognised in
Standalone Statement of Profit and Loss, actuarial assumptions and other information.

The above sensitivity analysis have been determined based on reasonable possible changes of the
respective assumptions occurring at the end of the year and may not be representative of the
actual change. It is based on a change in the key assumption while holding all other assumptions
constant. When calculating the sensitivity to the assumption, the same method is used to calculate
the liability recognised in the Standalone Balance Sheet. The methods and types of assumptions
used in preparing the sensitivity analysis did not change compared to the previous year.

(vii) Actuarial assumptions

With the objective of presenting the plan assets and plan obligations of the defined benefits plans at
their fair value on the Standalone Balance Sheet, assumptions under Ind AS 19 are set by reference
to market conditions at the valuation date.

26. Revenue from operations

Accounting Policy

The Company's revenue primarily from sale of Carbon materials and chemicals, and power (generation and
distribution). Revenue excludes any taxes and duties collected on behalf of the Government.

Revenue from sale of products is recognised at the point in time when control of the goods is transferred to the
customer, generally on delivery of the products.

At contract inception, the Company assess the goods promised in a contract with a customer and identifies as
a performance obligation of each promise to transfer to the customer. Revenue from contracts with customers
is recognized when control of goods is transferred to customers and the Company retains neither continuing
managerial involvement to the degree usually associated with ownership nor effective control over the goods sold.
Revenue from the sale of goods is measured at the fair value of the consideration received or receivables, net of
returns and allowances and trade discounts.

30. Employee benefits expense

Accounting Policy

Retirement benefit costs and termination benefits

A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into
a separate entity and will have no legal or constructive obligation to pay further amounts. Payments to defined
contribution retirement benefit plans are recognised as an expense when employees have rendered service
entitling them to the contributions.

For defined benefit retirement plans, the cost of providing benefits is determined using the projected unit credit
method, with actuarial valuations being carried out at the end of each annual reporting period. The present value
of the defined benefit obligation is determined by discounting the estimated future cash outflows using market
yields of government bonds having terms approximating to the terms of related obligation. The gratuity fund is
being managed by Life Insurance Corporation of India.

Remeasurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable)
and the return on plan assets (excluding interest), is reflected in the balance sheet with a charge or credit
recognised in other comprehensive income in the period in which they occur. Remeasurement recognised in other
comprehensive income is reflected immediately in retained earnings and will not be reclassified to the statement
of profit and loss. Past service cost is recognised in the statement of profit and loss in the period of a plan
amendment. Net interest is calculated by applying the discount rate at the beginning of the period to the net
defined benefit liability or asset.

The retirement benefit obligation recognised in the balance sheet represents the actual deficit or surplus in the
Company's defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any
economic benefits available in the form of refunds from the plans or reductions in future contributions to the plans.

The Company has a policy on compensated absences which are both accumulating and non-accumulating
in nature. The expected cost of accumulating compensated absences is determined by actuarial valuation
performed by an independent actuary at each Balance Sheet date using projected unit credit method on the
additional amount expected to be paid / availed as a result of the unused entitlement that has accumulated
at the Balance Sheet date. Actuarial gains and losses arising from experience adjustments and changes in

30. Employee benefits expense (Contd.)

actuarial assumptions are charged or credited to the statement of profit and loss in the period in which they
arise. Expense on non-accumulating compensated absences is recognized in the period in which they arise.
Compensated absences which are not expected to occur within twelve months after the end of the period in which
the employee renders the related service are recognised based on actuarial valuation at the present value of the
obligation as on the reporting date.

31. Finance costs

Accounting Policy

Borrowing costs are interest and other costs (including exchange differences relating to foreign currency
borrowings to the extent that they are regarded as an adjustment to interest costs) incurred in connection with
the borrowing of funds. Borrowing costs directly attributable to acquisition or construction of an asset which
necessarily take a substantial period of time to get ready for their intended use are capitalised as part of the
cost of that asset. Other borrowing costs are recognised as an expense in the period in which they are incurred.
Where there is an unrealised exchange loss which is treated as an adjustment to interest and subsequently there
is a realised or unrealised gain in respect of the settlement or translation of the same borrowing, the gain to the
extent of the loss previously recognised as an adjustment is recognised as an adjustment to interest.

33. Income tax

Accounting Policy

Income tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. The current income tax charge is calculated on
the basis of the tax laws enacted or substantively enacted at the balance sheet date. Taxable profit differs from
'profit before tax' as reported in the statement of profit and loss because of items of income or expense that are
taxable or deductible in other years and items that are never taxable or deductible. Management periodically
evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to
interpretation. It establishes provisions, where appropriate, on the basis of amounts expected to be paid to the tax
authorities using a weighted average probability.

Deferred tax

Deferred tax liabilities are recognised for all taxable temporary differences. Deferred tax assets are 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 assets and liabilities are not
recognised if the temporary difference arises from initial recognition (other than in a business combination)
of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.
Deferred tax on the deductible temporary difference and taxable temporary differences in respect of carrying value
of right of use assets and lease liability and their respective tax bases are recognised separately. The measurement
of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which
the Company expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.

The 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 profits will be available to allow all or part of the asset to be recovered.

33. Income tax (Contd.)

Minimum Alternative Tax (MAT) is recognized as an asset only when and to the extent there is convincing evidence
that the Company will pay normal income tax during the specified period. MAT Credits are in the form of unused
tax credits that are carried forward by the Company for a specified period of time, hence it is grouped with
Deferred Tax Asset.

Current and deferred tax for the period

Current and deferred tax are recognised in the 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.

B. The Company has established a comprehensive system of maintenance of information and documents as
required by the transfer pricing regulations under Sections 92-92F of the Income-tax Act, 1961. Since the law
requires existence of such information and documentation to be contemporaneous in nature, the Company
continuously updates its documents for the international transactions entered into with the associated
enterprises during the financial year. The management is of the opinion that its international transactions
are at arm's length so that the aforesaid legislation will not have any impact on the Standalone financial
statements, particularly on the amount of tax expense for the year and that of provision for taxation.

a) Deferred tax assets is not recognised on certain items [such as investment impairment, loss allowances
on advances and capital loss] due to lack of reasonable certainty.

b) MAT credit entitlement is the amount which is available for set off in subsequent years against income
tax liabilities as per the provisions of the Income-tax Act, 1961.

c) Section 115 BAA of the Income-tax Act, 1961, introduced by the Taxation Laws (Amendment) Act, 2019
gives a one-time irreversible option for payment of income-tax at reduced rate with effect from financial
year commencing 1 April 2019 subject to certain conditions. The Company had assessed the impact of
the above amendment and decided to continue with the existing tax structure till the current financial
year 2024-25 to utilise the accumulated Minimum Alternative Tax ('MAT') and to migrate to new tax
regime from next financial year 2025-26. Accordingly the Company has re-assessed the deferred tax
assets / liability that is expected to reverse on exercising the option on the future date as per Ind AS 12
'Income Taxes' and thus reversal of net deferred tax liability of J 301.10 Lakhs (31 March 2024: H 1,025.00
Lakhs) has been recognised during the financial year. The unutlised balance of MAT of J 356.67 Lakhs
has been charged to deferred tax expense in the standalone statement of profit and loss for the year
ended 31 March 2025.

34. Earnings per equity share (EPS)

Accounting Policy

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

35. Contingent liability and commitments

(to the extent not provided for)

Accounting Policy

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of
which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not
wholly within the control of the Company or a present obligation that arises from past events where it is either not
probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount
cannot be made. Contingent assets are neither recognised nor disclosed in the standalone financial statements.

35. Contingent liability and commitments (Contd.)

Note:

(i) Cash outflows for the above are determinable only on receipt of final judgments pending at various
forums/ authorities. The Company has reviewed all its pending litigations and proceedings and has
adequately provided for where provisions are required and disclosed as contingent liabilities where
applicable, in its Standalone financial statements. The Company does not expect the outcome of these
proceedings to have a materially adverse effect on its financial position.

(ii) Others represents dispute with a lessor in respect of arrear dues. The Company based on independent
legal opinion, does not foresee any significant financial liability on this account.

(c) Leases (ind AS 116)

Accounting Policy

The Company assesses whether a contract is or contains a lease, at inception of the contract. The Company
recognises a right-of-use asset and a corresponding lease liability with respect to all lease arrangements in
which it is the lessee, except for short-term leases (defined as leases with a lease term of 12 months or less)
and leases of low value assets. For these leases, the Company recognises the lease payments as an operating
expense on a straight-line basis over the lease term, unless another systematic basis is more representative of
the time pattern in which economic benefits from the leased assets are consumed. Contingent and variable
rentals are recognized as expense in the periods in which they are incurred.

The lease payments that are not paid at the commencement date are discounted using the interest rate
implicit in the lease. If that rate cannot be readily determined, which is generally the case for leases in the
Company, the lessee's incremental borrowing rate is used, being the rate that the individual lessee would have
to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar
economic environment with similar terms, security and conditions.

To determine the incremental borrowing rate, the company uses a build-up approach that starts with a risk¬
free interest rate adjusted for credit risk and makes adjustments specific to the lease, e.g. term, security etc.

38. Share based payments

A. Description of share-based payment arrangement

Himadri Employees Stock Option Plan 2016 (equity-settled)

The Company at its 28^th Annual General Meeting held on 24 September 2016, has approved “Himadri
Employees Stock Option Plan 2016” (ESOP 2016 or Plan) for granting 40,00,000 Employees Stock Options
to certain "eligible employees". The Plan is administered by the Nomination and Remuneration Committee
of the Board (“the Committee”) in compliance with the provisions of SEBI (Share Based Employee Benefits
and Sweat Equity) Regulations, 2021 and other applicable provisions of the Companies Act. 2013 for the time
being in force. The option granted to certain eligible employees including certain key management personnel
on vesting condition of time basis, Company performance and individual performance as specified in the
grant letter issued to each employee.

Expected volatility has been based on an evaluation of the historical volatility of the Company's share price,
particularly over the historical period commensurate with the expected term. The expected term of the
instruments has been based on historical experience and general option holder behaviour.

Expected life of the options has been calculated on the assumption that options would exercise within one
year from the date of vesting.

The fair value of option on the date of grant have been done by an independent valuer appointed by the
management using the Black Scholes Merton Model.

* Expected volatility on the Company's stock price on National Stock Exchange of India Ltd based on the data commensurate with
the expected life of the options up to the date of grant.

** Expected dividend on underlying shares is taken as 10% on market price as on the date of grant.

39. Related party disclosure (Contd.)

E. Terms and conditions of transactions with related parties

All related party transactions entered during the year were in ordinary course of business and are on arm's
length basis. Outstanding balances at the year-end is unsecured and settlement occurs in cash.

40. Financial Instrument

Accounting Policy

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date, regardless of whether that price is directly observable or
estimated using another valuation technique.

The Company has an established control framework with respect to the measurement of fair values. In estimating
the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability
if market participants would take those characteristics into account when pricing the asset or liability at the
measurement date. The management has overall responsibility for overseeing all significant fair value measurements
and it regularly reviews significant unobservable inputs and valuation adjustments. If third party information,
such as broker quotes or pricing services, is used to measure fair values, then the valuation team assesses the
evidence obtained from the third parties to support the conclusion that these valuations meet the requirements
of Ind AS, including the level in the fair value hierarchy in which the valuations should be classified. Fair value for
measurement and/or disclosure purposes in the financial statement is determined on such a basis, except for
share-based payment transactions, leasing transactions and measurements that have some similarities to fair value
but are not fair value, such as net realisable value in Inventories or value in use in Impairment of Assets.

The estimated fair value of the Company's financial instruments is based on market prices and valuation techniques.
Valuations are made with the objective to include relevant factors that market participants would consider in setting
a price, and to apply accepted economic and financial methodologies for the pricing of financial instruments.
References for less active markets are carefully reviewed to establish relevant and comparable data.

B. Fair value hierarchy

The Company has established the following fair value hierarchy that categories the value into 3 levels. The
inputs to valuation techniques used to measure fair value of financial instruments are:

Level 1: The hierarchy uses quoted (adjusted) prices in active markets for identical assets or liabilities. The
fair value of all bonds which are traded in the stock exchanges is valued using the closing price or dealer
quotations as at the reporting date.

Level 2: The fair value of financial instruments that are not traded in an active market (for example traded
bonds, over the counter derivatives) is determined using valuation techniques which maximise the use of
observable market data and rely as little as possible on company specific estimates. Unquoted mutual fund
units are valued using the closing net asset value. 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.

The following methods and assumptions were used to estimate the fair values:

(a) The fair value of the quoted investments are based on market price at the respective reporting date.

(b) The fair value of the unquoted investments included in level 2 has been determined using valuation
techniques with market observable inputs. The model incorporate various inputs including prevailing
market value of investments in listed company.

(c) The fair value of the quoted /unquoted investments included in level 3 are based on the cost approach to
arrive at their fair value. The cost of unquoted investments approximate the fair value because there is a
range of possible fair value measurements and the cost represents estimate of fair value within that range.

(d) The fair value of forward foreign exchange contracts is calculated as the present value determined using
forward exchange rates and interest rate curve of the respective currencies.

(e) The fair value of currency swap is calculated as the present value determined using forward exchange
rates, currency basis spreads between the respective currencies and interest rate curves.

40. Financial Instrument (Contd.)

(f) The fair value of the remaining financial instruments is determined using discounted cash flow analysis.
The discount rate used is based on the Company's estimates.

(g) The fair value of the commodity hedge is determined using the commodity rates existing as at the end
of the reporting period.

The significant observable inputs used in the fair value measurement of the fair value hierarchy of level 3
inputs like discounted cash flows, market multiple method, option pricing model etc.

There were no transfer of financial assets or liabilities measured at fair value between level 1 and level 2, or
transfer into or out of level 3 during the year ended 31 March 2025 and 31 March 2024.

Calculation of fair values

The fair values of the financial assets and liabilities are defined as the price that would be received on sale of an

asset or paid to transfer a liability in an orderly transaction between market participants at the measurement

date. Methods and assumptions used to estimate the fair values are consistent with those used for the year

ended 31 March 2024.

Financial assets and liabilities measured at fair value as at Standalone Balance Sheet date

1. The fair values of investments in mutual fund units is based on the net asset value ('NAV') as stated by the
issuers of these mutual fund units in the published statements as at Balance Sheet date. NAV represents
the price at which the issuer will issue further units of mutual fund and the price at which issuers will
redeem such units from the investors.

2. The fair values of the derivative financial instruments has been determined using valuation techniques
with market observable inputs. The models incorporate various inputs including the credit quality of
counter-parties and foreign exchange forward rates.

Other financial assets and liabilities

- Cash and Cash equivalents, trade receivables, investments in term deposits, other financial assets (except
derivative financial instruments), trade payables, and other financial liabilities (except derivative financial
instruments) have fair values that approximate to their carrying amounts due to their short-term nature.

- Loans have fair values that approximate to their carrying amounts as it is based on the net present value
of the anticipated future cash flows using rates currently available for debt on similar terms, credit risk
and remaining maturities.

40. Financial Instrument (Contd.)

Significant unobservable inputs used in level 3 fair values

Certain investments are valued using level 3 techniques. A change in one or more of the inputs to reasonably
possible alternative assumptions would not change the value significantly.

41. Financial risk management

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

(i) Credit risk

(ii) Liquidity risk

(iii) Market risk

Risk management framework

The Company's principal financial liabilities, other than derivatives, comprises of borrowings, trade and other
payables. The main purpose of these financial liabilities is to finance the Company operations. The Company's
principal financial assets, other than derivatives include trade and other receivables, investments and cash and
cash equivalents that derive directly from its operations.

The Company's activities expose it to a variety of financial risks, including market risk, credit risk and liquidity
risk. The Company's primary risk management focus is to minimise potential adverse effects of market risk on its
financial performance. The Company uses derivative financial instruments to mitigate foreign exchange related
risk exposures. The Company's exposure to credit risk is influenced mainly by the individual characteristic of
each customer and the concentration of risk from the top few customers. The Company's risk management
assessment and policies and processes are established to identify and analyse the risks faced by the Company, to
set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment
and management policies and processes are reviewed regularly to reflect changes in market conditions and the
Company's activities.

This note presents information about the Company's exposure to each of the above risks, the Company's objectives,
policies and processes for measuring and managing risk, and the Company's management of capital. The key risks
and mitigating actions are also placed before the audit committee of the Company.

41. Financial risk management (Contd.)

(i) Credit risk

Credit risk is the risk of financial loss of the Company if a customer or counterparty to a financial instrument
fails to meet its contractual obligations, and arises principally from the Company's receivables from customers
and loans. Credit arises when a customer or counterparty does not meet its obligations under a financial
instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its
operating activities (primarily trade receivables) and from its financing/investing activities, including deposits
with bank, investments in debt securities and foreign exchange transactions. The carrying amount of financial
assets represent the maximum credit risk exposure.

Trade receivable

The Company has established a credit policy under which each new customer is analysed individually for
creditworthiness before the Company's standard payment and delivery terms and conditions are offered.
All trade receivables are reviewed and assessed for default on a quarterly basis. Our historical experience of
collecting receivables indicate a low credit risk.

Exposure to credit risks

The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer.
However the Company also considers the factors that may influence the credit risk of its customer base,
including the default risk associated with the industry and country in which customer operates. The Company
limits its exposure to credit risk from trade receivables by establishing a maximum payment period of three
months for customers.

Trade receivables are primarily unsecured and are derived from revenue earned from customers. Credit
risk is managed through credit approvals, establishing credit limits and by continuously monitoring the
creditworthiness of customers to which the Company grants credit terms in the normal course of business. As
per simplified approach, the Company makes provision of expected credit losses on trade receivables using a
provision matrix to mitigate the risk of default payments and makes appropriate provisions at each reporting
date whenever is for longer period and involves higher risk. The Company uses expected credit loss model to
assess the impairment loss or gain. The Company uses a provision matrix to compute the credit loss allowance
for trade receivables.

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time
or at reasonable price. Prudent liquidity risk management implies maintaining sufficient cash and marketable
securities and the availability of funding through an adequate amount of credit facilities to meet obligations
when due. The Company's finance team is responsible for liquidity, finding as well as settlement management.
In addition, processes and policies related to such risks are overseen by senior management. Management
monitors the Company's liquidity position through rolling forecasts on the basis of expected cash flows.

The Company's approach to managing liquidity is to ensure, as far as possible, that it will have sufficient
liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring
unacceptable losses or risking damage to the Company's reputation.

Market risk is the risk of loss of future earnings, fair value or future cash flows that may result from a change in
the price of a financial instrument. The value of a financial instrument may change as a result of changes in the
interest rates, foreign currency exchange rates, commodity prices, equity prices and other market changes
that effect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial
instruments including investments and deposits, foreign currency receivables, payables and borrowings.

All such transactions are carried out within the guidelines set by the management. Generally, the Company
seeks to apply hedge accounting to manage volatility in other comprehensive income.

(a) Currency risk

Foreign currency risk is the risk impact related to fair value or future cash flows of an exposure in foreign
currency, which fluctuate due to changes in foreign exchange rates. The Company's exposure to the risk
of changes in foreign exchange rates relates primarily to the foreign currency borrowings, import of raw
materials and spare parts, capital expenditure, exports of finished goods. The currency in which these
transactions are primarily denominated is USD. The Company manages currency exposures within prescribed
limits, through use of forward exchange contracts and cross currency swap. Foreign exchange transactions
are covered with strict limits placed on the amount of uncovered exposure, if any, at any point of time.

The Company evaluates exchange rate exposure arising from foreign currency transactions. The Company
follows established risk management policies and standard operating procedures. It uses derivative
instruments like foreign currency swaps and forwards to hedge exposure to foreign currency risk. When
a derivative is entered into for the purpose of being a hedge, the Company negotiates the terms of those
derivatives to match the terms of the hedged exposure.

41. Financial risk management (Contd.)

(b) 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 related primarily to the Company's current borrowings with floating interest rates. For all
non-current borrowings with floating rates, the risk of variation in the interest rates in mitigated through
interest rate swaps. The Company constantly monitors the credit markets and rebalances its financing
strategies to achieve an optimal maturity profile and financing cost.

Interest rate sensitivity has been calculated assuming the borrowings outstanding at the reporting date
have been outstanding for the entire reporting period and all other variables, in particulars foreign
currency exchange rates, remain constant. Further, the calculation for the unhedged floating rate
borrowing have been done on the notional value of the foreign currency.

(c) Equity price risks

The Company's quoted and unquoted equity instruments are susceptible to market price risk arising
from uncertainties about future values of the investment securities. The reports on the equity portfolio
are submitted to the Company's senior management on a regular basis. The senior management reviews
and approves all equity investment decisions.

Sensitivity analysis

Investment in equity instruments made by the Company are listed on the BSE Ltd (BSE), National
Stock Exchange of India Ltd (NSE) and Calcutta Stock Exchange (CSE) in India. There is no significant
investment outstanding as at 31 March 2025. Hence, sensitivity analysis is not given.

42. Capital management

The Company's policy is to maintain a strong capital base so as to maintain investor, creditor and market
confidence and to sustain future development of the business. The management monitors the return on capital,
as well as the level of dividends to equity shareholders. The Company's objective when managing capital are to:

(a) maximise shareholders value and provide benefits to other stakeholders and (b) maintain an optimal capital
structure to reduce the cost of capital. The Company may take appropriate steps in order to maintain or adjust its
capital structure.

42. Capital management (Contd.)

For the purpose of the Company's capital management

(a) Borrowings include as non-current borrowings, current borrowings and current maturities of non-current
borrowings as described in note 19

(b) Equity includes issued, subscribed and fully paid-up equity share capital and other equity attributable to the
equity holders of the Company as described in note 17 and 18.

(c) Cash and bank balances include cash and cash equivalents, mutual funds and Bank balances other than cash
and cash equivalents (refer note 9 and 10)

43. Segment information

The Company has presented segment information in the Consolidated financial statements which are presented

in the same annual report. Accordingly, in terms of paragraph 4 of Ind AS 108 'Operating segment', no disclosures

related to segments are presented in these Standalone financial statements.

(ii) Details of benami property held

No proceedings have been initiated on or are pending against the Company for holding benami property
under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

(iii) Borrowing secured against current assets

The Company has taken working capital borrowings from banks and financial institutions on the basis of
security of current assets. The quarterly statement filed to the banks and financial institutions are in agreement
with the books of accounts.

(iv) Willful defaulter

The Company has not been declared willful defaulter by any bank or financial institution or government or any
government authority.

(vi) Compliance with number of layers of companies

The Company has complied with the number of layers prescribed under the Companies Act, 2013.

(vii) Compliance with approved scheme(s) of arrangements

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

(viii) Utilisation of borrowed funds and share premium

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

(ix) Undisclosed income

The Company do not have any such transactions which 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 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

(x) Details of crypto currency or virtual currency

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

(xi) Valuation of PP&E, intangible asset and investment property

The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible
assets or both during the current or previous year.

(xii) Registration of charges or satisfaction with Registrar of Companies

There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond
the statutory period.

(xiii) Utilisation of borrowings availed from banks and financial institutions

The borrowings obtained by the Company from banks and financial institutions have been applied for the
purposes for which such loans were taken.

44. Other Additional Regulatory Information (Contd.)

(xiv) The Company has used accounting software for maintaining its books of account which has a feature
of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant
transactions recorded in the software. Further, there are no instance of audit trail feature being tampered and
the audit trail has been preserved by the company as per the statutory requirements for record retention.

45. The management has evaluated all activities of the Company till 21 April 2025 and concluded that there were no
additional subsequeent events required to be reflected in the Group's financial statements except the following
Companies which become subsidiary Companies:
** The Company holds 49% of paid-up equity share capital of Himadri Birla Tyre Manufacturer Private Limited ("HBTMPL”) w.e.f. 01 April
2025. However, based on contractual rights (including potential voting right combined with 49% voting right), the Company has the power
to make decisions concerning relevant activities and thus has control over HBTMPL as per IND AS 110: "Consolidated Financial Statements.

As per our report of even date attached

For Singhi & Co. For and on behalf of the Board of Directors of

Chartered Accountants Himadri Speciality Chemical Ltd

Firm's Registration Number: 302049E CIN: L27106WB1987PLC042756

Sd/- Sd/- Sd/-

Navindra Kumar Surana Anurag Choudhary Shyam Sundar Choudhary

Partner Chairman cum Managing Director & Executive Director

Membership No. 053816 Chief Executive Officer DIN: 00173732

DIN: 00173934

Sd/- Sd/-

Kamlesh Kumar Agarwal Monika Saraswat

Chief Financial Officer Company Secretary &

Compliance Officer

Place: Kolkata Place: Kolkata

Date: 21 April 2025 Date: 21 April 2025