Provisions and Contingent Liabilities

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. Provisions are measured
at the best estimate of the expenditure required to
settle the present obligation at the Balance Sheet date.

If the effect of the time value of money is material,
provisions are discounted to reflect their present value
using a current pre-tax rate that reflects the current
market assessments of the time value of money and
the risks specific to the obligation. When discounting is
used, the increase in the provision due to the passage
of time is recognised as a finance cost.

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.

Revenue Recognition

Revenue from sale of goods is recognised when control
over goods is transferred to a customer as per the
terms of the contract.

This is usually evidenced by a transfer of all the
significant risks and rewards of ownership upon
delivery of goods to the customer, which in terms of
timing is not materially different to the date of shipping.
Revenue is measured at the contracted (transaction)
price received or receivable (includes Excise Duties
and National Calamity Contingent Duty which are

payable on manufacture of goods) after deduction
of any trade discount, incentive and other similar
discounts and any taxes or duties collected on behalf
of the Government which are levied on sales such as
Goods and Service tax, etc.

Income from export incentives such as duty drawback
is recognised on accrual basis.

Other Income

Interest income is recognised using the effective
interest rate (EIR) method.

Dividend income on investments is recognised when
the right to receive dividend is established.

Expenditure

Expenses are accounted on accrual basis.

Employee Benefits

All employee benefits such as salaries and
performance incentives, payable wholly within twelve
months of rendering the service are classified as short¬
term employee benefits expense. These are charged
to statement of profit and loss on an undiscounted,
accrual basis during the period of service rendered by
the employees.

Defined Contribution Plans

Contributions to defined contribution schemes such
as employees' state insurance, labour welfare fund,
superannuation scheme, employee pension scheme
etc. are charged as an expense based on the amount
of contribution required to be made as and when
services are rendered by the employees. Provident
fund contribution in respect of certain employees, who
are members of constituted and approved trusts, the
Company recognises contribution payable to such
trusts as an expense including any shortfall in interest
between the amount of interest realised from the
investment and the interest payable to members at the
rate declared by the Government of India. In respect of
other employees, provident funds are deposited with
the government administered fund and charged as an
expense to the Statement of Profit and Loss.

The Company makes contribution to defined
contribution pension plan. The contribution payable is
recognised as an expense, when an employee renders
the related service.

Defined Benefit Plans

The Company also makes contribution to defined
benefit pension and gratuity plan. The cost of
providing benefits under the defined benefit obligation
is calculated by independent actuary using the
projected unit credit method. Service costs and
net interest expense or income is reflected in the
Statement of Profit and Loss. Gain or loss on account of
remeasurements are recognised immediately through
other comprehensive income in the period in which
they occur.

Other Long Term Employee Benefits

The employees of the Company are entitled to
compensated leave for which the Company records
the liability based on actuarial valuation computed
using projected unit credit method. These benefits are
funded.

Termination Benefits

Termination benefits, in the nature of voluntary
retirement benefits or termination benefits arising
from restructuring, are recognised in the Statement of
Profit and Loss. The Company recognises termination
benefits at the earlier of the following dates:

(a) when the Company can no longer withdraw the
offer of those benefits; or

(b) when the Company recognises costs for a
restructuring that is within the scope of Ind AS 37
and involves the payment of termination benefits.

Benefits falling due more than 12 months after the end
of the reporting period are discounted to their present
value.

Share-based Payments

Employees of the Company receive remuneration in
the form of share based payments in consideration for
the services rendered.

For equity-settled share based payment, fair value
of the option / equity instruments at the grant date
is determined by an independent valuer using Black
Scholes Model and this is recognised in the Statement
of Profit and Loss as 'Employee benefit expense' on a
systematic basis over the vesting period of the option,
based on the company's estimate of option/ equity
instruments that will eventually vest with corresponding
increase in Other Equity.

For cash-settled share-based payments, the fair value
of the amount payable to employees is recognised
as employee benefits expense with a corresponding
increase in liabilities, over the vesting period. The
liability is remeasured at each reporting period date
including up to the settlement date, with changes in
fair value recognised in employee benefits expense.

In case of forfeiture/lapse of stock options, which are
not vested, amortised portion is reversed by credit to
employee benefit expense.

Treasury Shares

The Company has created an Employee Benefit
Trust (ebt) for providing share based payment to its
employees. The Company uses EBT as a vehicle for
purchasing shares from the market and distributing
them to employees under the Employee Stock Option
Scheme. The Company treats EBT as its extension and
the shares held by EBT are treated as treasury shares.

Own equity instruments that are re-acquired (treasury
shares) are recognised at cost and deducted
from Other Equity. No gain or loss is recognised in
Statement of Profit and Loss on purchase, sale, issue or
cancellation of the company's own equity instruments.
Any difference between carrying amount and the
consideration, if reissued or sold, is recognised in 'Other
Equity'. Share options exercised during the reporting
period are settled with treasury shares.

Income Taxes

Income tax expense for the year comprises of current
tax and deferred tax. It is recognised in the Statement
of Profit and Loss except to the extent it relates to a
business combination or to an item which is recognised
directly in equity or in other comprehensive income.

Current tax is the expected tax payable/recoverable
on the taxable income/ loss for the year using
applicable tax rates as at the Balance Sheet date, and
any adjustment to taxes in respect of previous years.
Interest income/ expenses and penalties, if any, related
to income tax are included in current tax expense.

Deferred tax is recognised in respect of temporary
differences between the carrying amount of assets
and liabilities for financial reporting purposes and the
corresponding amounts used for taxation purposes.

A deferred tax assets / liability is recognised based on
the expected manner of realisation or settlement of the
carrying amount of assets and liabilities, using tax rates
enacted, or substantively enacted, by the end of the
reporting period. Deferred tax assets are recognised
only to the extent that it is probable that future taxable
profits will be available against which the asset can
be utilised. Deferred tax assets are reviewed at each
reporting date and reduced to the extent that it is no
longer probable the related tax benefit will be realised.

Current tax assets and current tax liabilities are offset
when there is a legally enforceable right to set off the
recognised amounts and there is an intention to settle
the asset and the liability on a net basis. Deferred tax
assets and deferred tax liabilities are offset when there
is a legally enforceable right to set off current tax assets
against current tax liabilities; and the deferred tax
assets and the deferred tax liabilities relate to income
taxes levied by the same taxing authority.

Earnings Per Share

Basic earnings per share is computed by dividing
the net profit for the period attributable to the equity
shareholders of the Company by the weighted
average number of equity shares outstanding
during the period. The weighted average number of
equity shares outstanding during the period and for
all periods presented is adjusted for events, such as
bonus shares, other than the conversion of potential
equity shares that have changed the number of equity
shares outstanding, without a corresponding change
in resources.

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

Dividend Distribution

Dividend paid (including income tax thereon, if any) is
recognised in the period in which the interim dividends
are approved by the Board of Directors and in respect
of final dividend when approved by shareholders.

Leases

Leases which are short term that have a lease term of
12 months and low value leases in which a substantial
portion of the risks and rewards of ownership are
retained by the lessor are classified as operating
leases. Payments and receipts under such leases are
recognised to the Statement of Profit and Loss on a
straight-line basis over the term of the lease unless the
lease payments to the lessor are structured to increase
in line with expected general inflation to compensate
for the lessor's expected inflationary cost increases, in
which case the same are recognised as an expense in
line with the contractual term.

Recent Amendments

Ministry of Corporate Affairs ('MCA') notifies new
standards or amendments to the existing standards
under Companies (Indian Accounting Standards)
Rules as issued from time to time. During the current
year, MCA has notified amendmend to Ind AS-21 The
Effects of Changes in Foreign Exchange Rates, Ind
AS - 1 Presentation of Financial Statements, Ind AS
7 - Statement of Cash Flows, Ind AS 107 - Financial
Instruments: Disclosures and Ind AS -12 Income Taxes,
applicable to the Company w.e.f. April 1, 2025. The
Company has reviewed the new pronouncements and
based on its evaluation has determined that it does not
have any impact in its financial statements.

(i) The Company has ongoing indirect tax and legal matters comprising of numerous cases/ proceedings
under various Central and State Acts pending before various judicial forums.

(ii) The Company has reviewed all its pending litigations and proceedings and believes that it has valid basis
for appeals and intends to defend all such pending disputes vigorously. However, pending disposal of such
disputes, as a matter of prudence, it has adequately recognised a liability in the books wherever required
and is reflected above under 'Statutory Liabilities' - 5 5246.93 Lakhs (2025: 5 5246.93 Lakhs).

(iii) The Government of India reduced the levy of Compensation Cess on cigarettes to 'Nil' w.e.f. 1^st February 2026
and at the same time Excise Duty on the subject product was increased significantly. On the date of such
transition, the Company could be liable to pay input tax credit pertaining to Compensation Cess on such
inventory lying at its warehouses. As a matter of prudence, it has adequately recognised a liability in the
books wherever required and is reflected above under 'Statutory Liabilities' - 5 4905.27 Lakhs (2025: Nil).

(iv) Contingent liabilities where applicable are disclosed under note 25(a) of the financial statements.

25. CONTINGENT LIABILITIES, COMMITMENTS AND GUARANTEES

(a) Contingent Liabilities

(i) Claims against the Company not acknowledged as debts E 983.24 Lakhs (2025 - E 906.60 Lakhs)
These Comprise -

Excise duty, GST, service tax and customs duty matters E 478.99 Lakhs (2025 - E 402.35 Lakhs)

Other matters including employees / ex-employees, etc.E 504.25 Lakhs (2025 - E 504.25 Lakhs)

(ii) In addition to the above, the Company is subject to certain other litigations, in the ordinary course of
business and the industry in which it operates in, which are pending.

(iii) It is not practicable for the Company to estimate the closure of these issues and the consequential
timings of cash outflows and estimate of financial effect, if any, in respect of the above as its determinable
only on occurrence of uncertain future events/ receipt of judgements pending at various forums.

The amounts assessed as contingent liability do not include interest that could be claimed by counter
parties.

(b) Commitments

Estimated amount of contracts remaining to be executed on Capital Account, net of advances (not provided
for) - E 1574.27 Lakhs (2025 - E 1196.99 Lakhs)

(c) Disclosure under section 186(4) of the Companies Act, 2013

Details of Loans, Guarantees or Investments covered under the provisions of Section 186 of the Companies
Act, 2013, as applicable are provided in Notes 3 and 9.

26. FUTURE LEASE OBLIGATIONS

The Company has entered into various short term and low value operating lease agreements and the
amounts paid under such agreements have been charged to the statement of profit and loss as Rent under
Note 23. All these agreements are cancellable in nature.

27. SEGMENT REPORTING

The Chief Operating Decision-Maker (CODM) has been identified as Management Committee which
evaluates the Company's performance and allocates resources at an overall level considering the
business and industry it operates in. Accordingly, the Company's business activity primarily falls within a
single operating segment viz. Tobacco and related products. Therefore, the disclosures as per Ind AS 108 -
Operating Segments' is not applicable.

No customer individually accounted for more than 10% of the revenues.

Note: Liability for Gratuity, Leave encashment and Group Health Premiums are provided either on acturial
valuation basis by an independent valuer or separately for the Company as a whole. Accordingly, amounts
pertaining to key managerial personnel are not included above.

Terms and Conditions of transactions with related parties

All Related Party Transactions entered during the year were in the ordinary course of the business and at arm's
length basis.

Remuneration to directors and key managerial personnel is determined by the Nomination and Remuneration
Committee of the Board having regard to individual performance and market trends.

29. FINANCIAL INSTRUMENTS AND RELATED DISCLOSURES
A CAPITAL MANAGEMENT

The Company's financial strategy aims to provide adequate capital to its business for growth on a
going concern basis thereby creating sustainable stakeholder value. The Company funds its operations
mainly through internal accruals.

B CATEGORIES OF FINANCIAL INSTRUMENTS - FAIR VALUE MEASUREMENT AND FAIR VALUE
HIERARCHY

The fair value of the financial assets and liabilities is defined as 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. Methods and assumptions used to estimate the fair value are consistent with those
used for the earlier period.

Financial assets and liabilities are measured at fair value as at Balance Sheet date as under:

i) The fair value of investment in government securities and quoted investment in equity shares are
based on the current bid price of respective investments as at the Balance Sheet date.

ii) The fair value 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 their published statements as at Balance Sheet date.
NAV represents the price at which the issuer will issue further units of mutual fund as well as the
price at which issuers will redeem such units for the investors.

iii) The fair values of the derivative financial instruments has been determined using valuation
techniques with market observable inputs such as foreign exchange spot rates and forward rates
as at end of reporting period, interest yield curves, volatility, etc., as applicable.

iv) Cash and cash equivalents (except for investments in units of mutual fund), other bank balances,
trade receivables, trade payables and other current financial assets and liabilities (except derivative
financial instruments), have fair value that approximates to their carrying amount due to their short¬
term nature.

Fair value of the financial instruments have been classified into various fair value hierarchies respective
three levels as under:

Level 1 - Quoted prices for identical assets or liabilities in an active market.

Level 2 - Directly or indirectly observable market inputs, other than Level 1 inputs; and

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

If one or more of the significant inputs is not based on observable market data, the fair value is
determined using generally accepted pricing model based on a discounted cash flow analysis, with
the most significant input being the discount rate that reflects the credit risk of the counterparty.

The following table shows the carrying amount and fair value of financial assets and liabilities, including
their levels in the fair value hierarchy:

C. FINANCIAL RISK MANAGEMENT OBJECTIVES

The Company's risk management framework anchored in its policies and procedures and internal
financial controls aim to ensure that the Company's business activities that are exposed to a variety
of financial risks namely liquidity risk, market risks, credit risk and foreign currency risk are identified at
an early stage and managed within acceptable and approved risk parameters in a disciplined and
consistent manner and in compliance with applicable regulations.

Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become
due. Cash flow from operating activities provides the funds to service the financial liabilities on a day-to¬
day basis. The Company's approach in managing liquidity is to ensure that it will have sufficient funds
to meet its liabilities when due without incurring any unacceptable losses. In doing this, Management
considers both normal and stressed conditions. The Company maintained a cautious liquidity strategy,
with a positive cash balance throughout the year ended 31^st March 2026 and 31^st March 2025.

On the reporting date, the Company's Current assets (excluding Asset held for sale) aggregate to
E 137500.91 Lakhs (2025 - E 93944.26 Lakhs) including Current investments, Cash and cash equivalents
and Other bank balances of E 59317.3 Lakhs (2025 - E 34999.19 Lakhs) against an aggregate Non-Current
liabilities of E 2519.12 Lakhs (2025 - E 2344.59 Lakhs) and Current liabilities of E 54496.91 Lakhs (2025 -
E 46986.27 Lakhs) and also there are no difference in value as per contracts and its carrying value
as at the Balance Sheet date and are due within a year. Further, the Company's total equity stood at
E 144567.21 Lakhs (2025 - E 132268.94 Lakhs). Accordingly, liquidity risk or the risk that the Company may
not be able to settle its dues as they become due does not exist. This excludes the potential impact of
extreme circumstances that cannot be reasonably predicted, such as natural disasters.

Market Risk

The Company does not trade in equity instruments; it continues to hold certain investments in equity
for long term value accretion which are measured at fair value through Other Comprehensive Income.
The value of investment in such equity instruments as at 31^st March 2026 is E 13.94 Lakhs (2025 - E 384.57
Lakhs).

The Company's investments are predominantly held in fixed deposits and debt schemes of mutual
funds. The decision making is centralised and administered under a set of approved policies and
procedures guided by the principles of safety, liquidity and returns. This ensures that investments are
only made within acceptable risk parameters after due evaluation.

Fixed deposits are held with highly rated banks and companies and have a short to medium tenure
and accordingly, are not subject to interest rate volatility. Investment in debt schemes of mutual funds
are susceptible to market price risk that arise mainly from change in interest rate from time to time
which may impact the return and value of such investments. However, given the relatively short tenure
of the underlying portfolio of such mutual fund schemes in which the Company has invested, such
price risk is not significant. Investment in Government Securities are primarily fixed rate interest bearing
investments. Hence, the Company is not significantly exposed to interest rate risk.

As the Company is debt-free and its liabilities do not carry interest, the exposure to interest rate risk from
the perspective of Financial Liabilities is negligible.

Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counter-party fails to meet its
contractual obligations. The Company's customer base is large and diverse and credit is extended
in business interest in accordance with well laid out guidelines issued centrally. Exceptions, if any, are
approved by appropriate authority after due consideration of the customers credentials and financial
capacity, trade practices and prevailing business and economic conditions. Our historic experience of
collecting receivables is high and accordingly, the credit risk is low. Hence, all trade receivables together
are considered to be a single class of financial assets.

The value of Trade Receivables as at 31^st March 2026 is E 4701.86 Lakhs (2025 - E 6406.06 Lakhs).

Further, the Company maintains exposure in cash and cash equivalents, term deposits with banks,
government securities, debt schemes of mutual funds and derivative instruments with financial
institution. The Company has set counter-parties limits based on multiple factors including credentials,
financial capacity, credit rating, etc.

The Company's credit period generally ranges from 0-180 days.

The Company's maximum exposure to credit risk as at 31^st March 2026 and 31^st March 2025 is the carrying
value of each class of financial assets.

Foreign Currency Risk

The Company undertakes transactions denominated in foreign currency (mainly US Dollar, Euro and
Pound Sterling) which are subject to the risk of exchange rate fluctuations. Financial assets and liabilities
denominated in foreign currency, arising out of such transactions, are also subject to reinstatement
risk.

The Company has an established risk management policy to hedge the volatility arising from exchange
rate fluctuation in respect of firm commitments and highly probable forecast transactions, through
foreign exchange forward contracts. The proportion of forecast transactions that are to be hedged is
decided based on the size of the forecasted transaction and market conditions. As the counterparty
for such transactions are Scheduled banks, the risk of their non-performance is considered to be
insignificant.

The use of these foreign exchange forward contracts are intended to reduce the risk or cost to the
Company and are not intended for trading or speculation purpose.

The information on such Derivative Instruments is as follows:

Forward exchange contracts designated under Hedge Accounting that were outstanding on respective
reporting dates:

Hedges of foreign currency risk and derivative financial instrument

Foreign exchange forward contracts that are designated as cash flow hedges and qualify for hedge
accounting are fair valued at each reporting date and the resultant gain or loss is recognised in "Other
Equity" under Other Comprehensive Income: Cash Flow Hedge to the extent considered highly effective
and are reclassified into the Statement of Profit and Loss upon occurrence of the hedged transactions.
Gain or loss on derivative instruments that are either not designated as cash flow hedges or designated
as cash flow hedges to the extent considered ineffective are recognised in the Statement of Profit and
Loss.

The movement in the cash flow hedging reserve in respect of designated cash flow hedges is
summarised below:

(ii) Satisfaction of Charges

The Company has no outstanding borrowing amount since year 2005 and accordingly appropriate
form for satisfaction of charges was filed on time before Registrar of Companies, Hyderabad and
the Company has been continuously pursuing with the authorities to reflect the same on their
website.

30. EMPLOYEE BENEFIT PLANS

Employee Retirement Benefit Plans of the Company include Provident fund, Retirement Allowances, Gratuity,
Pension and Leave Encashment. These plans expose the Company to a number of actuarial risks such
as investment risk, interest rate risk, longevity risk and inflation risk. The Company has developed policy
guidelines within the applicable statutory framework, for allocation of assets to different classes with the
objective of maintaining the right balance between risks and long-term returns. Further, investments are well
diversified, such that the failure of any single investment would not have a material impact on the overall
level of assets.

Description of Plans
(i) Provident Fund :

Eligible employees of the Company receive benefits under the Provident Fund which are defined
contribution / benefit plans wherein both the Company and the employees make monthly contributions
equal to a specified percentage of the covered employees' salary. These contributions are made to
the Funds administered and managed by the Govt. of India / Company's own Trust. The Company's
own trust plan envisages guarantee of interest at the rate notified by the Provident Fund authority. The
Company's contributions along with interest shortfall, if any, are charged to the statement of profit and
loss in the year they are incurred. Expenditure for the year amounted to E 332.29 Lakhs (2025 - E 358.26
Lakhs).

Foreign Currency Sensitivity

A 1% strengthening of the INR against key currencies to which the company is exposed (net of hedges)
would have led to the profit before tax for the year ended 31^st March 2026 to be lower by E 29.61 Lakhs
(2025 - E 55.26 Lakhs) and total equity (pre-tax) as at 31^st March 2026 would change by E 29.61 Lakhs
(2025 - E 55.26 Lakhs).

A 1% weakening of the INR against these currencies would have led to an equal but opposite effect.
General Risk Assessment

(i) The Company, to the extent possible, has considered the risks that may result from the uncertainties
and its impact on the carrying amounts of trade receivables, investments, financial instruments
and effectiveness of its hedges. Based on the Company's analysis of the current indicators of the
future economic condition on its business and the estimates used in its financial statements, the
Company does not foresee any material impact in the recoverability of the carrying value of the
assets. The risk assessment is a continuous process and the Company will continue to monitor the
impact of the changes in future economic conditions on its business.

(ii) Retirement Allowance

The Company has an unfunded defined benefit retirement allowance scheme for its employees in
the workmen category. Liability with regard to such scheme is determined on actuarial valuation
performed by an independent actuary at each balance sheet date using projected unit credit method
and charged to the statement of profit and loss in the period determined - E 379.97 Lakhs; (2025-E 361.22
Lakhs). Consequently, Liability recognised in the Balance sheet as at 31^st March 2026 E 2691.79 Lakhs;
(2025-E 2514.43 Lakhs) including E 203.03 Lakhs (2025 - E 203.03 Lakhs) payable within 12 months shown
under 'Accrued Payroll'.

(iii) Gratuity

In accordance with 'the Code on Social Security, 2020' of India, the Company provides for gratuity, a
defined retirement benefit plan ( the 'Gratuity Plan') covering eligible employees. Liabilities with regard
to such Gratuity Plan are determined on actuarial valuation performed by an independent actuary at
each balance sheet date using projected unit credit method and are charged to the statement of profit
and loss in the period determined. The Gratuity Plan is a funded Plan administered by Company's own
Trust which has subscribed to " Group Gratuity Scheme" of Life Insurance Corporation of India.

(iv) Pension Fund

The Company has a defined contribution pension scheme to provide pension to the eligible employees.
The Company makes monthly contributions equal to a specified percentage of the covered employees'
salary to a notified pension scheme under National Pension Scheme of the Government of India. The
Company's contributions are charged to the statement of profit and loss in the period they are incurred
- E 89.34 Lakhs ( 2025 - E 101.82 Lakhs).

In addition to the above, the Company has a funded defined benefit pension scheme for its employees
in the workmen category. Liability with regard to such defined benefit plan are determined on actuarial
valuation performed by an independent actuary at each balance sheet date using projected unit
credit method and are charged to the statement of profit and loss in the period determined. This plan
is administered by the Company's own Trust which has subscribed to "Group Pension Scheme" of Life
Insurance Corporation of India.

(v) Leave Encashment

The Company has a leave encashment scheme whereunder, leaves are both accumulating and non¬
accumulating in nature. The expected cost of accumulating leaves expected to be paid/availed as a
result of the unused entitlement that has accumulated as at the balance sheet date is determined on
actuarial valuation performed by an independent actuary at each balance sheet date using projected
unit credit method and are charged to the statement of profit and loss in the period determined . The
Scheme is fully funded by way of subscription to the "Leave Encashment' of Life Insurance Corporation
of India. Compensation, if any, for non-accumulating leaves is charged to the statement of profit and
loss in the period in which the absences occurs.

G Investment details of the Plan assets

I n the absence of detailed information regarding plan assets which are funded with Life Insurance
Corporation of India, the composition of each major category of plan assets, the percentage or amount of
each category to the fair value of plan assets is not disclosed.

H Basis used to determine the Expected Rate of Return on Plan Assets

The expected rate of return on plan assets is based on the current portfolio of assets, investment strategy
and market scenario. In order to protect the capital and optimize returns within acceptable risk parameters,
the plan assets are well diversified.

I Sensitivity Analysis

The Sensitivity Analysis below has been determined based on reasonably possible change of the respective
assumptions occurring at the end of the reporting period, while holding all other assumptions constant.
These sensitivities show the hypothetical impact of a change in each of the listed assumptions in isolation.
While each of these sensitivities holds all other assumptions constant, in practice such assumptions rarely
change in isolation and the asset value changes may offset the impact to some extent. For presenting the
sensitivities, the present value of the Defined Benefit Obligation has been calculated using the projected
unit credit method at the end of the reporting period, which is the same as that applied in calculating the
Defined Benefit Obligation presented above. There was no change in the methods and assumptions used
in the preparation of the Sensitivity Analysis from previous year.

LabourCodes

The Government of India has consolidated existing labour legislations into four comprehensive labour
codes effective 21^st November 2025. These codes include Code on wages 2019, Code on Social Security
2020, Industrial Relation Code 2020, and Occupational Safety, Health and Working Condition Code 2020
(collectively referred to as the New Labour Codes). However, the final rules under these codes are yet to be
notified. Pending notification, the Company has evaluated the incremental impact of these changes in
accordance with the guidance issued by the Institute of Chartered Accountants of India and has estimated
and recognised the additional gratuity and leave liability of ^ 601 Lakhs basis the actuarial valuation.
The Company continues to monitor the finalisation of Central / State Rules and clarifications from the
Government on other aspects of the Labour Codes and would provide appropriate accounting effect on
the basis of such developments as needed.

For the year ended 31^st March 2026, the Company has accounted expense of 5 1.73 Lakhs (2025-5 27.71
Lakhs) as employee benefit expenses (see note 22) on the aforesaid employee stock option plan. The
balance in share based payment reserve account is 5 174.08 Lakhs as of 31^st March 2026 (2025 - 5 172.35
Lakhs).

(b) Information in respect of Options granted under the Company's Employee Phantom Stock Option
Scheme ('Plan')

The Phantom stock option plan creates an opportunity to link the employee reward to Company's share
price performance. Under this plan, the Company grants phantom stock option to select employees.
Cash pay-out equivalent to the appreciation in the value of shares will be made when exercised after
vesting period.

The fair value of the Phantom Option scheme was determined using the Black-Scholes model based
on the following inputs:

33. EXCEPTIONAL ITEMS

During the previous year ended 31^st March 2025, exceptional item comprise an amount E 10048.81 Lakhs (net
of tax E 8688.29 Lakhs) on account of net gain realised on sale of one of its immovable property being land
along with structures situated at Hyderabad, Telangana.