l) Provisions

General

Provisions are recognised when the Company has a
present obligation (legal or constructive) as a result of
a past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle
the obligation and a reliable estimate can be made of
the amount of the obligation. The expense relating to
a provision is presented in the statement of profit and
loss net of any reimbursement.

If the effect of the time value of money is material,
provisions are discounted using a current pre-tax rate
that reflects, when appropriate, the risks specific to the
liability. When discounting is used, the increase in the
provision due to the passage of time is recognised as
a finance cost.

Provision for mines restoration

The Company has recognized a provision for mines
restoration based on its best estimates. In determining
the fair value of the provision, assumptions and
estimates are made in relation to the expected
future inflation rates, discount rate, expected cost of
restoration of mines, expected balance of reserves
available in mines and the expected life of mines.

Decommissioning liability

The present value of the expected cost for the
decommissioning of an asset after its use and leasehold
improvements on termination of lease is included
in the cost of the respective asset if the recognition
criteria for a provision are met. The Company records
a provision for decommissioning costs of its plant for

manufacturing of Soda Ash and leasehold improvements
at the leasehold land. Decommissioning costs are
provided at the present value of expected costs to
settle the obligation using estimated cash flows and are
recognised as part of the cost of the particular asset.
The cash flows are discounted at a current pre-tax rate
that reflects the risks specific to the decommissioning
liability. The unwinding of the discount is expensed as
incurred and recognised in the statement of profit and
loss as a finance cost. The estimated future costs of
decommissioning are reviewed annually and adjusted
as appropriate. Changes in the estimated future costs
or in the discount rate applied are added to or deducted
from the cost of the asset.

The impact of climate-related matters on remediation
of environmental damage is considered with
determining the decommissioning liability on the
manufacturing facility.

Onerous Contracts

If the Company has a contract that is onerous, the
present obligation under the contract is recognised
and measured as a provision. However, before
a separate provision for an onerous contract is
established, the Company recognises any impairment
loss that has occurred on assets dedicated to that
contract. An onerous contract is a contract under
which the unavoidable costs (i.e., the costs that the
Company cannot avoid because it has the contract)
of meeting the obligations under the contract exceed
the economic benefits expected to be received under
it. The unavoidable costs under a contract reflect the
least net cost of exiting from the contract, which is the
lower of the cost of fulfilling it and any compensation
or penalties arising from failure to fulfil it. The cost
of fulfilling a contract comprises the costs that
relate directly to the contract (i.e., both incremental
costs and an allocation of costs directly related to
contract activities).

m) Gratuity and other post-employment benefits

Retirement benefit in the form of pension fund under
provident fund and superannuation fund is a defined
contribution scheme. The Company has no obligation,
other than the contribution payable to the pension
fund under provident fund and superannuation fund.
The Company recognizes contribution payable to the
pension fund under provident fund and superannuation
fund scheme as an expense, when an employee

renders the related service. If the contribution payable
to the scheme for service received before the balance
sheet date exceeds the contribution already paid, the
deficit payable to the scheme is recognized as a liability
after deducting the contribution already paid. If the
contribution already paid exceeds the contribution due
for services received before the balance sheet date,
then excess is recognized as an asset to the extent that
the pre-payment will lead to, for example, a reduction
in future payment or a cash refund.

The Company operates a provident fund scheme
through a trust administered by the Company. The
contributions towards the provident fund are made to
the trust set up for this purpose.

In respect of this scheme, the Company has an obligation
to ensure a minimum rate of return as prescribed under
the Employees’ Provident Fund Scheme. Accordingly,
the Company’s obligation in respect of the provident
fund trust is treated as a defined benefit plan.

The liability in respect of the defined benefit plan is
determined based on actuarial valuation carried out
at the reporting date using the projected unit credit
method. The Company recognizes the net defined
benefit obligation as the difference between the
present value of defined benefit obligation and the fair
value of plan assets.

Re-measurements comprising actuarial gains and losses
and return on plan assets (excluding interest income)
are recognized in Other Comprehensive Income and
are not reclassified to the Statement of Profit and Loss
in subsequent periods.

The Company’s contributions to the provident fund
trust are recognized as plan assets and reduce the net
defined benefit liability.

The Company also operates a defined benefit gratuity
plan, which requires contributions to be made to a
separately administered fund. The cost of providing
benefits under the defined benefit plan is determined
using the projected unit credit method.

Remeasurements, comprising of actuarial gains
and losses, the effect of the asset ceiling, excluding
amounts included in net interest on the net defined
benefit liability and the return on plan assets (excluding
amounts included in net interest on the net defined
benefit liability), are recognised immediately in the

balance sheet with a corresponding debit or credit to
retained earnings through OCI in the period in which
they occur. Remeasurements are not reclassified to
profit or loss in subsequent periods.

Past service costs are recognised in profit or loss on
the earlier of:

• The date of the plan amendment or
curtailment, and

• The date that the Company recognises related
restructuring costs

Net interest is calculated by applying the discount
rate to the net defined benefit liability or asset. The
Company recognises the following changes in the
net defined benefit obligation as an expense in the
statement of profit and loss:

• Service costs comprising current service
costs, past-service costs, gains and losses on
curtailments and non-routine settlements; and

• Net interest expense or income
Short-term employee benefits

The undiscounted amount of short-term employee
benefits expected to be paid in exchange for the
services rendered by employees are recognized on an
undiscounted accrual basis during the year when the
employees render the services. These benefits include
performance incentive and compensated absences
which are expected to occur within twelve months
after the end of the period in which the employee
renders the related services.

Long-term employee benefits

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
recognized as a liability at the present value of the
defined benefit obligation as at the Balance Sheet date.
The cost of providing benefits is determined using the
projected unit credit method, with actuarial valuations
being carried out at each Balance Sheet date. Actuarial
gains and losses are recognized in the Statement of Profit
and Loss in the period in which they occur. The Company
presents the entire leave liability as current liability,
since it does not have an unconditional right to defer its
settlement for 12 months after the reporting period.

n) Share-based payments

Employees (including senior executives) of the
Company receive remuneration in the form of share-
based payments, whereby employees render services
as consideration for equity instruments (equity-
settled transactions).

Equity-settled transactions

The cost of equity-settled transactions is determined
by the fair value at the date when the grant is made
using an appropriate valuation model.

That cost is recognised, together with a corresponding
increase in share-based payment (SBP) reserves in
equity, over the year in which the performance and/
or service conditions are fulfilled in employee benefits
expense. The cumulative expense recognised for
equity-settled transactions at each reporting date
until the vesting date reflects the extent to which
the vesting year has expired and the Company’s best
estimate of the number of equity instruments that will
ultimately vest. The expense or credit in the statement
of profit and loss for a year represents the movement
in cumulative expense recognised as at the beginning
and end of that year and is recognised in employee
benefits expense.

Service and non-market performance conditions are
not taken into account when determining the grant date
fair value of awards, but the likelihood of the conditions
being met is assessed as part of the Company’s best
estimate of the number of equity instruments that
will ultimately vest. Market performance conditions
are reflected within the grant date fair value. Any
other conditions attached to an award, but without
an associated service requirement, are considered to
be non-vesting conditions. Non-vesting conditions are
reflected in the fair value of an award and lead to an
immediate expensing of an award unless there are also
service and/or performance conditions.

No expense is recognised for awards that do not
ultimately vest because non-market performance
and/or service conditions have not been met. Where
awards include a market or non-vesting condition,
the transactions are treated as vested irrespective
of whether the market or non-vesting condition is
satisfied, provided that all other performance and/or
service conditions are satisfied.

When the terms of an equity-settled award are
modified, the minimum expense recognised is the
grant date fair value of the unmodified award,
provided the original vesting terms of the award are
met. An additional expense, measured as at the date
of modification, is recognised for any modification
that increases the total fair value of the share-based
payment transaction, or is otherwise beneficial to the
employee. Where an award is cancelled by the entity or
by the counterparty, any remaining element of the fair
value of the award is expensed immediately through
profit or loss.

The dilutive effect of outstanding options is reflected
as additional share dilution in the computation of
diluted earnings per share.

o) Financial instruments

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

Financial assets

Initial recognition and measurement

All financial assets are recognised initially at fair value
plus, in the case of financial assets not recorded at fair
value through profit or loss, transaction costs that are
attributable to the acquisition of the financial asset.
Purchases or sales of financial assets that require
delivery of assets within a time frame established by
regulation or convention in the market place (regular
day trades) are recognised on the trade date, i.e.,
the date that the Company commits to purchase or
sell the asset.

Subsequent measurement

For purposes of subsequent measurement, financial
assets are classified in three categories:

• Financial assets at amortised cost
(debt instruments)

• Financial assets designated at fair value through
OCI with no recycling of cumulative gains and
losses upon derecognition (equity instruments)

• Financial assets at fair value through profit or loss

Financial assets at amortised cost (debt instruments)

A ’financial asset’ is measured at the amortised cost if
both the following conditions are met:

(a) The asset is held within a business model
whose objective is to hold assets for collecting
contractual cash flows, and

(b) Contractual terms of the asset give rise on
specified dates to cash flows that are solely
payments of principal and interest (SPPI) on the
principal amount outstanding.

This category is the most relevant to the Company.
After initial measurement, such financial assets are
subsequently measured at amortised cost using the
effective interest rate (EIR) method. Amortised 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 amortisation is included
in finance income in the profit or loss. The losses
arising from impairment are recognised in the profit or
loss. The Company financial assets at amortised cost
includes trade receivables and loans included under
other financial assets.

Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss
are carried in the balance sheet at fair value with net
changes in fair value recognised in the statement of
profit and loss.

This category includes derivative instruments and
mutual/liquid funds investments which the Company
had not irrevocably elected to classify at fair value
through OCI. Dividends on listed equity investments
are recognised in the statement of profit and loss when
the right of payment has been established.

Financial assets designated at fair value through FVTPL
/FVTOCI (equity instruments)

Upon initial recognition, the Company can elect to
classify irrevocably its equity investments as equity
instruments designated at fair value through OCI when
they meet the definition of equity under Ind AS 32
Financial Instruments: Presentation and are not held
for trading. The classification is determined on an
instrument-by-instrument basis. Equity instruments
which are held for trading and contingent consideration
recognised by an acquirer in a business combination to
which Ind AS103 applies are classified as at FVTPL.

and the maximum amount of consideration that the
Company could be required to repay.

Impairment of financial assets

The Company recognises an allowance for expected
credit losses (ECLs) for all debt instruments not held
at fair value through profit or loss. ECLs are based on
the difference between the contractual cash flows due
in accordance with the contract and all the cash flows
that the Company expects to receive, discounted at an
approximation of the original effective interest rate.
The expected cash flows will include cash flows from
the sale of collateral held or other credit enhancements
that are integral to the contractual terms.

ECLs are recognised in two stages. For credit exposures
for which there has not been a significant increase in
credit risk since initial recognition, ECLs are provided
for credit losses that result from default events that are
possible within the next 12-months (a 12-month ECL).
For those credit exposures for which there has been a
significant increase in credit risk since initial recognition,
a loss allowance is required for credit losses expected
over the remaining life of the exposure, irrespective of
the timing of the default (a lifetime ECL).

For trade receivables, the Company applies a simplified
approach in calculating ECLs. Therefore, the Company
does not track changes in credit risk, but instead
recognises a loss allowance based on lifetime ECLs at
each reporting date. The Company has established a
provision matrix that is based on its historical credit
loss experience, adjusted for forward-looking factors
specific to the debtors and the economic environment.

Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition,
as financial liabilities at fair value through profit or
loss, loans and borrowings, payables, or as derivatives
designated as hedging instruments in an effective
hedge, as appropriate.

All financial liabilities are recognised initially at fair
value and in the case of loans and borrowings and
payables, net of directly attributable transaction costs.

The Company's financial liabilities include trade and
other payables, loans and borrowings and derivative
financial instruments.

Subsequent measurement

For purposes of subsequent measurement, financial
liabilities are classified in two categories:

• Financial liabilities at fair value through profit orloss

• Financial liabilities at amortised cost (loans
and borrowings)

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss
include financial liabilities held for trading and financial
liabilities designated upon initial recognition as at fair
value through profit or loss. Financial liabilities are
classified as held for trading if they are incurred for
the purpose of repurchasing in the near term. This
category also includes derivative financial instruments
entered into by the Company that are not designated
as hedging instruments in hedge relationships as
defined by Ind-AS 109.

Gains or losses on liabilities held for trading are
recognised in the profit or loss.

Financial liabilities designated upon initial recognition
at fair value through profit or loss are designated at
the initial date of recognition, and only if the criteria
in Ind-AS 109 are satisfied. For liabilities designated as
FVTPL, fair value gains/ losses attributable to changes
in own credit risk are recognized in OCI. These gains/
losses are not subsequently transferred to Statement
of Profit and Loss. However, the Company may transfer
the cumulative gain or loss within equity. All other
changes in fair value of such liability are recognised in
the statement of profit or loss. The Company has not
designated any financial liability as at fair value through
profit and loss.

Financial liabilities at amortised cost (Loans and
Borrowings)

This is the category most relevant to the Company.
After initial recognition, interest-bearing loans
and borrowings are subsequently measured at
amortised cost using the EIR method. Gains and
losses are recognised in profit or loss when the
liabilities are derecognised as well as through the EIR
amortisation process.

Amortised 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 amortisation is included as finance costs in the
statement of profit and loss.

This category generally applies to borrowings. For
more information refer Note 16.

Derecognition

A financial liability is derecognised when the obligation
under the liability is discharged or cancelled or
expires. When an existing financial liability is replaced
by another from the same lender on substantially
different terms, or the terms of an existing liability
are substantially modified, such an exchange or
modification is treated as the derecognition of the
original liability and the recognition of a new liability.
The difference in the respective carrying amounts is
recognised in the statement of profit or loss.

Reclassification of financial assets

The Company determines classification and
measurement 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. For financial
assets which are debt instruments, a reclassification is
made only if there is a change in the business model for
managing those assets. Changes to the business model
are expected to be infrequent. The Company's senior
management determines change in the business model
as a result of external or internal changes which are
significant to the Company's operations. Such changes
are evident to external parties. A change in the business
model occurs when the Company either begins or
ceases to perform an activity that is significant to
its operations. If the Company reclassifies financial
assets, it applies the reclassification prospectively from
the reclassification date which is the first day of the
immediately next reporting year following the change
in business model. The Company does not restate
any previously recognised gains, losses (including
impairment gains or losses) or interest. The following
table shows various reclassification and how they are
accounted for as per below:

i) Amortised cost to FVTPL - Fair value is measured
at reclassification date. Difference between
previous amortized cost and fair value is
recognised in Statement of Profit and Loss.

ii) FVTPL to Amortised Cost - Fair value at

reclassification date becomes its new gross
carrying amount. EIR is calculated based on the
new gross carrying amount.

iii) Amortised cost to FVTOCI - Fair value is

measured at reclassification date. Difference
between previous amortised cost and fair value
is recognised in OCI. No change in EIR due to
reclassification.

iv) FVTOCI to Amortised cost - Fair value at

reclassification date becomes its new amortised

cost carrying amount. However, cumulative
gain or loss in OCI is adjusted against fair value.
Consequently, the asset is measured as if it had
always been measured at amortised cost.

v) FVTPL to FVTOCI - Fair value at reclassification
date becomes its new carrying amount. No other
adjustment is required.

vi) FVTOCI to FVTPL - Assets continue to be
measured at fair value. Cumulative gain or loss
previously recognized in OCI is reclassified
to Statement of Profit and Loss at the
reclassification date.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and
the net amount is reported in the balance sheet if
there is a currently enforceable legal right to offset
the recognised amounts and there is an intention to
settle on a net basis, to realise the assets and settle the
liabilities simultaneously.

p) Derivative financial instruments

Initial recognition and subsequent measurement

The Company uses derivative financial instruments,
such as forward currency contracts, to hedge its
foreign currency risks. Such derivative financial
instruments are initially recognised at fair value on
the date on which a derivative contract is entered
into and are subsequently re-measured at fair value.
Derivatives are carried as financial assets when the fair
value is positive and as financial liabilities when the fair
value is negative.

Any gains or losses arising from changes in the fair
value of derivatives are taken directly to profit or loss.

q) Cash and cash equivalents

Cash and cash equivalents in the balance sheet
comprise cash at banks and on hand and short-term
deposits with an original maturity of three months or
less, that are readily convertible to a known amount of
cash and subject to an insignificant risk of changes in
value. Bank balances other than the balance included
in cash and cash equivalents represents balance
on account of unpaid dividend and margin money
deposit with banks.

r) Dividend

The Company recognises a liability to pay dividend
to equity holders when the distribution is authorised
and the distribution is no longer at the discretion of
the Company. As per the corporate laws in India, a
distribution is authorised when it is approved by the
shareholders. A corresponding amount is recognised
directly in equity.

s) Foreign currencies

The Company's financial statements are presented in
INR, which is also the Company's functional currency.

Transactions and balances

Transactions in foreign currencies are initially recorded
in the functional currency, using the spot exchange
rates at the date of the transaction first qualifies
for recognition. Monetary assets and liabilities
denominated in foreign currencies are translated at
the functional currency spot rates of exchange at
the reporting date. Exchange differences that arise
on settlement of monetary items are recognised in
Statement of Profit and Loss. Non-monetary items that
are measured in terms of historical cost in a foreign
currency are translated using the exchange rates at
the dates of the initial transactions. Non-monetary
items measured at fair value in a foreign currency are
translated using the exchange rates at the date when
the fair value is determined. The gain or loss arising
on translation of nonmonetary items measured at fair
value is treated in line with the recognition of the gain
or loss on the change in fair value of the item (i.e.,
translation differences on items whose fair value gain
or loss is recognised in OCI or profit or loss are also
recognised in OCI or profit or loss, respectively).

t) Investment in subsidiary

Investment in subsidiary was carried at cost in the
separate financial statements. Investment carried at
cost is tested for impairment as per IND AS 36.

u) Contingent Liabilities

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 recognized
because it is not probable that an outflow of resources
will be required to settle the obligation. A contingent
liability also arises in extremely rare cases where
there is a liability that cannot be recognized because
cannot be measured reliably. Therefore the Company
does not recognize a contingent liability but discloses
its existence in the financial statements. Contingent
assets are only disclosed when it is probable that the
economic benefits will flow to the entity.

v) Earnings per share

Basic earnings per share is calculated by dividing the
net profit or loss attributable to equity holders 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 for the year attributable to equity
shareholders of the Company and the weighted average
number of shares outstanding during the year are
adjusted for the effects of all dilutive potential equity
shares. Treasury shares are reduced while computing
basic and diluted earnings per share.

w) Treasury shares

The Company has created a GHCL Employees Stock
Option Trust for providing share-based payment to its
employees. The Company uses GHCL Employees Stock
Option Trust as a vehicle for distributing shares to
employees under the employee remuneration schemes.
The GHCL Employees Stock Option Trust buys shares
of the Company from the market, for giving shares
to employees. The Company treats GHCL Employees
Stock Option Trust as its extension and shares held by
GHCL Employees Stock Option Trust are treated as
treasury shares.

Own equity instruments that are reacquired (treasury
shares) are recognised at cost and deducted from
equity. No gain or loss is recognised in profit or loss
on the purchase, sale, issue or cancellation of the
Company’s own equity instruments. Any difference
between the carrying amount and the consideration,
if reissued, is recognised in Securities premium. Share
options exercised during the reporting period are
satisfied with treasury shares.

New and amended standards

The Company applied for the first-time certain
standards and amendments, which are effective for
annual periods beginning on or after 1 April 2025.
The Company has not early adopted any standard,
interpretation or amendment that has been issued but
is not yet effective.

(i) Amendments to Ind AS 21 - Lack of

exchangeability

Specified 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 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.

(ii) Amendments to Ind AS 1 - Classification of
Liabilities as Current or Non-current and Non¬
current Liabilities with Covenants

The amendments clarify:

• What is meant by a right to defer settlement

• That a right to defer must exist at the end of
the reporting period

• That classification is unaffected by the
likelihood that an entity will exercise
its deferral right

• That only if an embedded derivative in
a convertible liability is itself an equity
instrument would the terms of a liability not
impact its classification

In addition, 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 financial
statements are approved for issue—not to
demand repayment for at least 12 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.

(iii) Amendments to Ind AS 7 and Ind AS 107 -
Supplier Finance Arrangements

Disclosures to clarify the characteristics of
supplier finance arrangements and require
additional disclosure of such arrangements. The
disclosure requirements in the amendments are
intended to assist users of financial statements
in understanding the effects of supplier finance
arrangements on an entity’s liabilities, cash flows
and exposure to liquidity risk.

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

The abovesaid amendments had no impact on the
Company’s financial statements as the Company.

Standards notified but not yet effective

The new and amended standards that are
notified by the Ministry of Corporate Affairs
(MCA), but not yet effective, up to the date of
issuance of the Company’s financial statements

are disclosed below. The Company will adopt
these amendments to the standards, when they
become effective.

Amendments to Ind AS 1 - Classification of
Liabilities as Current or Non-current and Non¬
current Liabilities with Covenants

In accordance with Ind AS 1 currently applicable,
breach of an immaterial covenant is ignored
deciding in current vs. non-current classification
of liabilities. Also, in case of breach of a material
covenant of a non-current loan on or before the
reporting date, the entity can obtain waiver from
the lender after the reporting date and continue
to classify the loan as non-current liability.

In accordance with changes to Ind AS 1 already
notified by the MCA, the above relaxations to
classify loan as non-current liability will not be
available from FY 2026-27 onward and need to
be applied retrospectively. Consequently:

• A breach of either material or

immaterial covenant will trigger current
classification of liability.

• To continue classifying loan as non¬
current liability, entities will need to obtain
waiver from the breach on or before the
reporting date.

The Company has assessed that amendments will
not have any impact on its financial statements.

15 Other equity

15I The Board of Directors at their meeting held on November 01, 2025, approved buyback of fully paid-up equity shares of face value of
H 10 each for a total amount not exceeding H 300.00 crores. The buyback offer approved by Board of Directors comprised a purchase
of 41,37,931 equity shares which is approximately 4.31% of the total paid-up equity shares capital of the Company as at September
30, 2025 at a price of H 725/- per equity share. The buyback is made from all eligible equity shareholders (excluding Promoter and
Promoters Group) of the Company as on the record date i.e. November 14, 2025 on a proportionate basis through the “Tender offer"
route." The Company concluded the buyback procedures on December 02, 2025 and 41,37,931 equity shares were bought back and
extinguished. The Company funded the buyback form its free reserve including securities premium as explained in Section 68 of the
Companies Act, 2013. In accordance with Section 69 of the Companies Act, 2013 , the Company has created a Capital Redemption
Reserve equal to the nominal value of shares bought back as an appropriation from the general reserve.

The buyback resulted in a cash outflow of H 302.23 crores (including transaction cost of H 2.23 crore, net of its income tax) which has
been accounted under following heads:

16 Borrowings

16.1 Term loans from Banks / institutions have been secured against: -

a) Loan aggregating to H 61.68 crores (March 31, 2025: H 96.86 crores) is secured by way of first pari passu charge on movable
assets of Soda Ash Division situated at village Sutrapada, Veraval, Gujarat both present and future. The outstanding loan
as at March 31, 2026 H 61.68 crores availed from Export-Import Bank of India (Exim Bank) and is repayable 9 equal
quarterly instalments of H 6.86 crores each. The loan presently carries an interest rate of 8.10% per annum.

b) Out of all the aforesaid secured loan of H 61.68 crores (March 31, 2025: H 96.86 crores), an amount of H 27.48 crores
(March 31, 2025: H 35.33 crores) is due for payment in next 12 months and accordingly reported under Note 16(B) under
the head “Short term borrowings" as “current maturities of Long Term Borrowings".

16.2 Short term borrowings:

(a) The Company has a total sanctioned working capital limit of H 450 crores (March 31, 2025: H 450 crores) which is
undrawn. Such facility is secured by way of hypothecation on inventory and trade receivables.

(b) Credit facilities in foreign currency : The Company has not availed any short term foreign currency facility during the
current financial year.

(c) Quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in
agreement with the books of accounts.

(d) The Company has satisfied all the loan covenants.

31 Significant accounting judgements, estimates and assumptions

The preparation of Company's standalone financial statements requires management to make judgments, estimates and assumptions that
affect the reported amounts of assets, liabilities, income and expenses and the accompanying disclosures and disclosure of contingent
liabilities. Uncertainty about the assumptions and estimates could result in outcomes that require a material adjustment to the carrying
value of assets or liabilities affected in future years.

Other disclosures relating to the Company’s exposure to risks and uncertainties includes:

• Financial risk management objectives and policies in Note 40

• Sensitivity analyses disclosures in Note 32 and Note 40

• Capital Management Note 41

(i) Judgements

In the process of applying the accounting policies, management has made the following judgements, which have significant effect
on the amounts recognised in the Standalone's financial statements:

Revenue from contracts with customers

The Company applied the following judgements that significantly affect the determination of the amount and timing of revenue
from contracts with customers:

Revenues from customer contracts are considered for recognition and measurement when the contract has been approved, in
writing, by the parties to the contract, the parties to contract are committed to perform the irrespective obligations under the
contract, and the contract is legally enforceable.

Judgement is required to determine the transaction price for the contract and to ascertain the transaction price to each distinct
performance obligation. The transaction price could be either a fixed amount of customer consideration or variable consideration
with elements such as a right of return the goods within a specified year, volume discounts, cash discount and price incentives. Any

31 Significant accounting judgements, estimates and assumptions

consideration payable to the customer is adjusted to the transaction price, unless it is a payment for a distinct product from the
customer. The Company allocates the elements of variable considerations to all the performance obligations of the contract unless
there is observable evidence that they pertain to one or more distinct performance obligations.

Provisions and contingencies

The assessments undertaken in recognising provisions and contingencies have been made in accordance with Ind AS 37, ‘Provisions,
contingent liabilities and contingent assets’. The evaluation of the likelihood of the contingent events has required best judgment by
management regarding the probability of exposure to potential loss.

Assessment of equity instruments

The Company has designated investments in equity instruments as FVTOCI investments since the Company expects to hold these
investment with no intention to sale. The difference between the instrument’s fair value and carrying amount has been recognized
in retained earnings.

(ii) Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting 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. The Company based its assumptions and estimates on parameters available when the financial statements were
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.

(iii) Provision for expected credit losses of trade receivables and contract assets

ECLs are recognised in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial
recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month
ECL). For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance
is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL).

For trade receivables, the Company applies a simplified approach in calculating ECLs. Therefore, the Company does not track
changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date. The Company has
established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to
the debtors and the economic environment.

(iv) Impairment of non-financial assets

Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher
of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation is based on available data
from binding sales transactions, conducted at arm’s length, for similar assets or observable market prices less incremental costs for
disposing of the asset. The value in use calculation is based on a DCF model. The cash flows are derived from the budget for the next
five years and do not include restructuring activities that the Company is not yet committed to or significant future investments
that will enhance the asset’s performance of the CGU being tested. The recoverable amount is sensitive to the discount rate
used for the DCF model as well as the expected future cash-inflows and the growth rate used for extrapolation purposes. These
estimates are most relevant to impairment assessment of Property plant and equipment and intangible assets.

(v) Share-based payments

For the measurement of the fair value of equity-settled transactions with employees at the grant date, the Company uses a Black-
Scholes model for Employee Share Option Plan (ESOP). The assumptions and models used for estimating fair value for share-based
payment transactions are disclosed in Note 33.

31 Significant accounting judgements, estimates and assumptions

(vi) Useful lives and residual values of Property, plant and equipment

The estimated useful lives of property, plant and equipment are based on a number of factors including the effects of obsolescence,
demand, competition, internal assessment of user experience and other economic factors (such as the stability of the industry, and
known technological advances) and the level of maintenance expenditure required to obtain the expected future cash flows from the
asset. The Company reviews the useful life and residual values of Property, plant and equipment at the end of each reporting date.

(vii) Post-retirement benefit plans

Employee benefit obligations (gratuity and provident fund obligation) are determined using actuarial valuations. 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 reporting date.
The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans operated in India, the
management considers the interest rates of government bonds where remaining maturity of such bond correspond to expected term of
defined benefit obligation.

The mortality rate is based on publicly available mortality tables. Those mortality tables tend to change only at interval in response
to demographic changes. Future salary increases and gratuity increases are based on expected future inflation rates. Further details
about gratuity obligations are given in Note 32.

(viii) Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the Balance sheet cannot be measured based on quoted
prices in active markets, their fair value is measured using valuation techniques including the DCF model. The inputs to these models
are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing
fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions
about these factors could affect the reported fair value of financial instruments. Refer Note 39A for further disclosures.

32 Defined benefit and contribution plan
Defined contribution plan

The Company makes contributions towards superannuation fund which is a defined contribution retirement plan for qualifying employees.
Under the plan, the Company is required to contribute a specified percentage of payroll cost to the retirement benefit plan to fund the
benefits. Contribution paid for superannuation fund are recognised as expense for the year :

32 Defined benefit and contribution plan
Defined benefit plan

A) Gratuity (funded)

The employees’ gratuity fund scheme managed by a Trust is a defined benefit plan. The present value of the obligation is determined
based on actuarial valuation using the Projected Unit Credit Method, which recognises each year of service as giving rise to
additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

Employees who are in continuous service for a year of 5 years are eligible for gratuity. The amount of gratuity payable to an
employee upon leaving the Company is computed proportionately for 15/26 days of wages (as per Labour Codes) multiplied for the
number of years of service. The gratuity plan is a funded plan and the Company makes contributions to Gratuity Trust registered
under Income Tax Act, 1961.

The most recent actuarial valuation of plan assets and the present value of the defined benefit obligation for gratuity were carried
out as at March 31, 2026. The present value of the defined benefit obligations and the related current service cost and past service
cost, were measured using the Projected Unit Credit Method.

The plan assets are managed by the Gratuity Trust formed by the Company. The management of 100% of the funds is entrusted
according to norms of Gratuity Trust, whose pattern of investment is available with the Company.

32 Defined benefit and contribution plan

B) Provident Fund (funded)

The Company contributes provident fund liability to GHCL Officers Provident Fund Trust. As per the applicable accounting
standards, provident funds set up by the employers, which require interest shortfall to be met by the employer, needs to be
treated as defined benefit plan. The actuarial valuation of Provident Fund was carried out in accordance with the guidance note
issued by Actuarial Society of India for measurement of provident fund liabilities and a provision has been recognised in respect of
future anticipated shortfall with regard to interest rate obligation as at the balance sheet date. The following tables summarize the
components of net employee benefit expenses recognised in the statement of profit and loss and the funded status and amounts
recognised in the balance sheet for the above mentioned plan:

33 Share based compensation payments

In accordance with the Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 and the Guidance
Note on accounting for 'Employees share-based payments, the Scheme detailed below is managed and administered, compensation
benefits in respect of the scheme is assessed and accounted by the Company. To have an understanding of the Scheme, relevant
disclosures are given below:

a) The Shareholders at their Annual General Meeting held on July 23, 2015, approved a maximum limit of 50,00,000 number of
stock options under the Employee Stock Option Scheme "GHCL ESOS 2015". The following details show the actual status of
ESOS granted during the financial year ended on March 31, 2026 :

During the current year, 3,17,300 equity shares of H 10 each have been issued and allotted and 9,000 stock options have
lapsed under the GHCL Employees Stock Option Scheme - 2015 ("ESOS"). The ESOP provision to the extent of H 0.18 crores
has been written back on account of the above options lapsed.

‘As per Appendix C to Ind AS 12, the Company considered whether it has any uncertain tax positions. The Company’s tax filings includes
deduction related to 80IA, deduction allowances on subsidiary losses, 14A disallowances, transfer pricing matters, disallowance u/s 56(2)
(x) and others. The taxation authorities may challenge those tax treatments. The Company determined, based on its tax compliance and
transfer pricing study, that it is probable that its tax treatments will be accepted by the taxation authorities.

The aforesaid Appendix did not have an impact on standalone financial statements of the Company.

** represents disputed matters on account of (a) denial of CENVAT credits (b) differential customs duties on account of classifications under different chapters of CETA
and (c) other indirect tax matters.

*** Claims under this heading relate to legal cases pending in different courts under the jurisdiction of Gujarat High Court and the courts subordinate to it. The
matters are relating to (a) certain claims relating to contractor’s workmen, whose services were terminated by the concerned contractor and the matter is between the
contractor and their workmen and GHCL is made a party to the dispute only, (b) water charges in dispute with a DAM (c) certain civil disputes.

On the basis of current status of individual case for respective years and as per legal advice obtained by the Company, wherever
applicable, the Company is confident of winning the above cases and is of the view that no provision is required in respect of above cases.

36 Related Party Transactions

a) The following table provides the list of related parties and total amount of transactions that have been entered into with related
parties for the relevant financial years.

A) Wholly Owned Subsidiaries

Dan River Properties LLC (Dissolved w.e.f February 18, 2026)

Rosebys Interiors India Limited (RIIL), an Indian Subsidiary, has been under liquidation since July 15, 2014

B) Key Managerial Personnel

Mr. R. S. Jalan, Managing Director

Mr. Raman Chopra, CFO & Executive Director - Finance

Mr. Neelabh Dalmia - Executive Director- Growth & Diversified Projects

Mr. Bhuwneshwar Mishra, Vice President - Sustainability & Company Secretary

C) Non-whole-time directors

Mr. Anurag Dalmia - Non-Executive Chairman (Promoter)

Mrs. Vijay laxmi Joshi - Non-Executive Independent Director
Dr. Manoj Vaish - Independent Director
Mr. Arun Kumar Jain - Independent Director
Justice (Retd.) Ravindra Singh - Independent Director

36 Related Party Transactions

The sales/purchase to or from related parties are made on terms equivalent to those that prevail in arm’s length transactions and
are in normal course of business. Outstanding balances at the year-end are unsecured and interest free and settlement occurs
in cash. There have been no guarantees provided or received for any related party receivables or payables. For the year ended
March 31, 2026, the Company has not recorded any impairment of receivables relating to amounts owed by related parties. This
assessment is undertaken each financial year through examining the financial position of the related party and the market in which
the related party operates. Related Party Transactions are generally on terms of 15 to 30 days.

37 Segment information

The Company's operations pertain to one segment i.e. Inorganic Chemicals and the Chief Operating Decision Maker (CODM) reviews the
operations of the Company as a whole, hence there is no reportable segments as per Ind AS 108 “Operating Segments”. The management
considers that the various goods provided by the Company constitutes single business segment, since the risk and rewards from these
products are not different from one another. However the Company has disclosed the following geographical information as follows:

Notes:

(i) The revenue information above is based on the locations of the customers.

(ii) Non-current assets for this purpose consist of Property, plant and equipment and Capital work in progress.

(iii) There are no customers having revenue exceeding 10% of total revenue of the Company

38 Hedging activities and derivatives

The Company is exposed to certain risks relating to its ongoing business operations. The primary risks managed using derivative
instruments are foreign currency risk.

The Company’s risk management strategy and how it is applied to manage risk are explained in Note 40.

Derivatives not designated as hedging instruments

The Company uses foreign exchange forward contracts to manage some of its transaction exposures. The foreign exchange forward
contracts are not designated as cash flow hedges and are entered into for a period consistent with foreign currency exposure of the

40 Financial risk management objectives and policies

The Company's principal financial liabilities, other than derivatives, comprise loans and borrowings, lease liabilities trade and other
payables. The main purpose of these financial liabilities is to finance the Company’s operations and to provide guarantees to support its
operations. The Company’s principal financial assets include loans, trade and other receivables, and cash and cash equivalents that derive
directly from its operations. The Company also holds FVTOCI & FVTPL investments and enters into derivative transactions.

The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees the management
of these risks. The Company’s senior management is supported by a Banking and Operations committee that advises on financial risks
and the appropriate financial risk governance framework for the Company. The financial Banking and Operations committee committee
provides assurance to the Company’s senior management 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. All derivative activities for risk management purposes are carried out by expert team that have the appropriate skills,
experience and supervision. It is the Company’s policy, that no trading in derivatives for speculative purposes may be undertaken. The
Banking and Operations committee reviews and agrees policies for managing each of these risks, which are summarised below.

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 risk: interest rate risk, currency risk and other price risk, such as equity price risk. Financial instruments
affected by market risk include equity and mutual fund investments, loans and borrowings, deposits and derivative financial instruments.

The sensitivity analyses in the following sections relate to the position as at March 31, 2026 and March 31, 2025. The sensitivity analysis
have been prepared on the basis that the amount of net debt, the ratio of fixed to floating interest rates of the debt are all constant.

40 Financial risk management objectives and policies

a) 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
long-term debt obligations with floating interest rates.

In order to optimize the Company’s position with regards to interest income and interest expenses and to manage the interest rate
risk, treasury performs a comprehensive corporate interest rate management by balancing the proportion of fixed rate and floating
rate financial instruments in its total portfolio.

The Company is not exposed the significant interest rate as at a respective reporting date.

Interest rate sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and
borrowings. With all other variables held constant, the Company’s profit before tax is effected through the impact on floating rate
borrowings, as follows:

The assumed movement in basis points for the interest rate sensitivity analysis is based on the currently observable market
environment, showing a significantly higher volatility than in prior year.

b) 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 its operating activities.
The Company manages its foreign currency risk by hedging transactions that are expected to occur within a maximum 12 month for
hedges of forecasted sales and purchases in foreign currency. The hedging is done through foreign currency forward contracts.

c) Equity price risk

The Company's investments in listed equity securities and mutual funds are susceptible to market price risk arising from uncertainties
about future values of the investment securities. The Company manages the equity price risk through diversification and by placing
limits on individual and total equity instruments. Reports on the equity portfolio are submitted to the Company’s senior management
on a regular basis. The Company’s Banking and Operations committee reviews and approves all equity investment decisions.

At the reporting date, the exposure to listed equity securities at fair value was H 13.43 crores as on March 31, 2026 (H 16.85 crores
as on March 31, 2025). A decrease of 10% on the NSE/BSE market index could have an impact of approximately H 1.34 crores on
the OCI or equity attributable to the Company. An increase of 10% in the value of the listed securities would also impact OCI and
equity. These changes would not have an effect on profit or loss.

Further, at reporting date, the Company has exposure to investments in mutual funds of H 1028.14 crores (H 634.18 crores as on
March 31, 2025). A decrease of 10% in the NAV of mutual funds could have an impact of approximately H 102.81 crores on the
statement of profit and loss.

d) Commodity risk

The Company is impacted by the price volatility of coal and other raw materials. Its operating activities require continuous
manufacture of Soda Ash, and therefore require a regular supply of coal and other raw materials. Due to the significant volatility of
the price of coal in international market, the Company has entered into purchase contract for coal with its designated vendor(s). The
price in the purchase contract is linked to the certain indexes. The Company’s commercial department has developed and enacted
a risk management strategy regarding commodity price risk and its mitigation.

e) Credit risk

Credit risk is the risk that 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 from its operating activities (primarily trade receivables) and from its financing
activities, including deposits with Banks and financial institutions, foreign exchange transactions and other financial instruments.

Trade receivables

Customer credit risk is managed by business unit subject to the Company’s established policy, procedures and control relating
to customer credit risk management. Credit quality of a customer is assessed based on customer profiling, credit worthiness and
market intelligence. Outstanding customer receivables are regularly monitored and any shipments to major customers are generally
covered by letters of credit or other forms of credit insurance.

An impairment analysis is performed at each reporting date on an individual basis for major customers. In addition, a large number
of minor receivables are categorized and assessed for impairment collectively. The calculation is based on exchange losses historical
data. The Company does not hold collateral as security except for Letter of Credits for export customers. The Company evaluates
the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and industries
and operate in largely independent markets.

40 Financial risk management objectives and policies

Financial instruments and cash deposits

Credit risk from balances with banks is managed by the Company’s treasury department in accordance with the Company’s policy.
Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty.
Counterparty credit limits are reviewed by the Company’s Board of Directors on an annual basis, and may be updated throughout
the year subject to approval of the Banking & Operations Committee. The limits are set to minimise the concentration of risks and
therefore mitigate financial loss through counterparty’s potential failure to make payments.

The Company's maximum exposure to credit risk for the components of the Balance sheet at March 31, 2026 and March 31, 2025
is the carrying amounts. The Company’s maximum exposure relating to financial guarantees and financial derivative instruments is
noted in note on commitments and contingencies and the liquidity table below.

Liquidity risk

Liquidity risk is the risk that the Company will encounter in meeting the obligations associated with its financial liabilities that
are settled by delivering cash or another financial asset. The approach of the Company to manage liquidity is to ensure, as far as
possible, that it should have sufficient liquidity to meet its respective liabilities when they are due, under both normal and stressed
conditions, without incurring unacceptable losses or risk damage to their reputation. The Company also believes a significant
liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the obligations related to lease liabilities
as and when they fall due.

41 Capital 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 holders of the Company. The primary objective of the Company’s capital management is to maximise
the shareholder value.

The Company manages its capital structure and makes adjustments in 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 a gearing ratio, which is net debt divided by total
capital plus net debt. The Company’s policy is to keep the gearing ratio of less than 75%. The Company includes within net debt, interest
bearing loans and borrowings, lease liabilities, trade and other payables, less cash and cash equivalents.

43 Events after the reporting period

In prior years, in accordance with SEBI (ESOS & ESPS) Guidelines 1999, the Employees Stock Option Scheme of the Company was administered
by the registered Trust named GHCL Employees Stock Option Trust (‘ESOS Trust’). SEBI circular dated November 29, 2013 required closure of
all Employee Stock Option Trusts by June 2014 and accordingly, the Company closed its ESOS scheme but retained its ESOS Trust for a limited
purpose of litigation. ESOS Trust owned 20,46,195 equity shares of GHCL Limited out of which 15,79,922 shares were illegally sold by share
broker against which ESOS Trust initiated various litigations which were pending and 4,66,273 shares are currently held by the Trust.

The Company during the tenure of ESOS Trust had written off a total amount of H 53.62 crores out of the total loans provided by the
Company to ESOS Trust in earlier years on account of permanent diminution/loss on sales of equity shares held by the Trust.

Subsequent to the balance sheet date i.e. on April 10, 2026, pursuant to approval of Board of Directors, the ESOS Trust entered into a
settlement deed with broker to settle all open and outstanding matters including litigations. Pursuant to execution of settlement deed
between the ESOS Trust and the broker, and the closure of all litigations, the ESOS Trust is entitled to receive 7,45,966 equity shares
of GHCL Limited and 8,56,466 equity shares of GHCL Textiles Limited. Upon their receipt, ESOS Trust shall dispose off these shares
and proceeds of the same (net of taxes, if any) shall be remitted to the Company. The Company and ESOS Trust shall appropriately
account for the receipt of equity shares and receipt of proceeds from sales of equity shares in accordance with applicable accounting
standards/principles.

45 Additional regulatory information

a The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for
holding any Benami property.

b The Company does not have any transactions with Companies struck off.

c The Company does not have any charges or satisfaction which are yet to be registered with ROC beyond the statutory year.

d The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

e 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

f The Company has 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:

(i) 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

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

g The Company does not have any transaction which are not recorded in the books of accounts that have 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

46 The Government of Gujarat had sanctioned Mining lease rights for Lignite in favour of the Company for a period of 30 years w.e.f.
December 09, 2003. On October 07, 2024, Joint Secretary, Industries and Mines Department, Gandhinagar, issued a corrigendum and
modified the period of mines to Twenty years instead of Thirty years. The Company had filed an application before the Joint Secretary,
Industries and Mines Department, Gandhinagar for an extension of the lease for a further period of 20 years.

During the current year , the State Goverment has approved the renewal of the mining lease for lignite mineral for a period of twenty
years i.e. the said mining lease is now valid up to December 08, 2043.

47 The Supreme Court of India issued a ruling on July 25, 2024, confirming that the State Governments are empowered to levy
taxes on mining activities and affirmed that State Governments have the authority to impose taxes on mineral rights, in addition to the
royalties already paid to the Central Government. Further, vide order dated August 14, 2024, it held that the States could levy/demand
tax on minerals w.e.f. April 01, 2005 and the same can be paid in 12 instalments commencing from April 01, 2026. The Gujarat Mineral
Rights Tax Act, 1985 provides for the levy and collection of tax on mineral rights of holders of mining leases in respect of certain minerals
in the State of Gujarat, however, no demand has been raised on the Company till date. As there are various issues involved and pending
clarity, based upon management evaluation and independent legal opinion, the Company would be able to assess the financial impact, if
any, of the possible obligation only on the occurrence and non-occurrence of uncertain future events, not entirely within the control of
the Company, and the consequent actions of the Union and State Government.

48 The Company has used accounting software (SAP S/4 HANA) 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 except
that audit trail feature was not enabled for direct changes to database using certain access rights till 6th May, 2025. Further, the Company
uses a third party accounting software (Facto HR) for maintaining its payroll related 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.No
instance of audit trail feature being tampered with was noted in respect of accounting softwares where the audit trail has been enabled.
Additionally, the audit trail of prior year(s) has been preserved by the Company as per the statutory requirements for record retention to
the extent it was enabled and recorded in the respective years except that for audit trail at database level for Facto HR is preserved for
last 6 months.

49 The management has evaluated the potential impact of the ongoing geopolitical tensions involving the United States and Iran and
believes that there is no material impact on the financial statements of the Company for the year ended March 31, 2026. The Company
does not have any significant direct exposure to the affected regions. However, the situation remains dynamic, and management will
continue to closely monitor developments for any potential indirect impact on the Company’s operations, supply chain, or overall business
environment.

50 The Government of India has consolidated 29 existing labour legislations into a unified framework comprising four labour codes,
namely the Code on Wages, 2019; the Code on Social Security, 2020 the Industrial Relations Code, 2020 and the Occupational Safety,
Health and Working Conditions Code, 2020 (collectively referred to as the “Codes"). The Codes have been made effective from November
21, 2025. The Ministry of Labour & Employment published draft Central Rules and FAQs to enable assessment of the financial impact
due to changes in regulations. The Company has assessed the impact of the changes, consistent with the Labour Codes, draft rules, FAQs
and estimated and recognized the impact of implementation of the New Labour Codes under Employee benefits expense for the year
ended 31 March 2026, which is not material to the standalone financial statements year ended March 31, 2026. The Company continues
to monitor the finalisation of Central / State Rules and clarifications from the Government on other aspects of the Labour Code and
would provide appropriate accounting effect on the basis of such developments as needed.