p) Provisions and contingencies

A provision is recognised when the Company has a present
obligation (legal or constructive) as a result of a past event,
and 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.

When the Company expects some or all of a provision to be
reimbursed, the reimbursement is recognised as a separate
asset, but only when the reimbursement is virtually certain.
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 in the
Statement of Profit and Loss.

A contingent liability is a possible obligation that arises
from past events whose existence will be confirmed by the
occurrence or non-occurrence of one or more uncertain
future events beyond the control of the Company or a present
obligation that is not recognized because it is not probable
that an outflow of resources will be required to settle the
obligation. A contingent liability also arises where there
is a liability that cannot be recognized because it cannot
be measured reliably. The Company does not recognize

a contingent liability but discloses its existence in the
financial statements.

Contingent assets are not recognised in financial statements,
unless they are virtually certain. However, contingent assets
are disclosed where inflow of economic benefits are probable.

Provisions, contingent liabilities and contingent assets are
reviewed at each balance sheet date.

q) Fair value measurement

Fair value is the price that would be received to sell an
asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. The
fair value measurement is based on the presumption that
the transaction to sell the asset or transfer the liability takes
place either:

• In the principal market for the asset or liability, or

• In the absence of a principal market, in the most
advantageous market for the asset or liability

The Company uses valuation techniques that are appropriate
in the circumstances and for which sufficient data are
available to measure fair value, maximizing the use of
relevant observable inputs and minimizing the use of
unobservable inputs.

• Level 1 — Quoted (unadjusted) market prices in active
markets for identical assets or liabilities

• Level 2 — Valuation techniques for which the lowest level
input that is significant to the fair value measurement is
directly or indirectly observable

• Level 3 — Valuation techniques for which the lowest level
input that is significant to the fair value measurement
is unobservable

For assets and liabilities that are recognised in the financial
statements on a recurring basis, the Company determines
whether transfers have occurred between levels in the
hierarchy by re-assessing categorisation (based on the lowest
level input that is significant to the fair value measurement as
a whole) at the end of each reporting period.

For the purpose of fair value disclosures, the Company has
determined classes of assets and liabilities based on the
nature, characteristics and risks of the asset or liability and
the level of the fair value hierarchy.

r) 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.

• initial recognition and measurement

Financial instruments are initially recognised when the
entity becomes party to the contract.

Financial instruments are measured initially at fair
value adjusted for transaction costs that are directly
attributable to the origination of the financial instrument
where financial instruments not classified at fair value
through profit or loss. Transaction costs of financial
instruments which are classified as fair value through
profit or loss are expensed in the Statement of Profit
and Loss.

• Subsequent measurement of financial
assets

For the purposes of subsequent measurement, the
financial assets are classified in the following categories
based on the Company’s business model for managing
the financial assets and the contractual terms of
cash flows:

• those to be measured subsequently at fair value;
either through OCI or through profit or loss

• those measured at amortised cost

For assets measured at fair value, changes in fair value
will either be recorded in the Statement of Profit and
Loss or OCI. For investments in debt instruments, this
will depend on the business model in which investment
is held. For investments in equity instruments, this
will depend on whether the Company has made an
irrevocable election at the time of initial recognition to
account for equity investment at fair value through OCI.

The Company reclassifies debt investments when
and only when its business model for managing those
assets changes.

Debt instruments at amortised cost

A ‘debt instrument’ is measured at the amortised cost if
both the following conditions are satisfied:

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

• The 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.

A gain or loss on a debt investment that is subsequently
measured at amortised cost and is not part of hedging
relationship is recognised in the Statement of Profit
and Loss when the asset is derecognised or impaired.
Interest income from these financial assets is included
in finance income using Effective Interest Rate
(EIR) method.

Equity investments

All equity investments in the scope of Ind AS 109
Financial Instruments are measured at fair value.
Equity instruments which are held for trading are
classified as at FVTPL. For all other equity instruments,
the Company may make an irrevocable election to
recognise subsequent changes in the fair value in OCI.
The Company makes such election on an instrument-
by-instrument basis. The classification is made on
initial recognition and is irrevocable.

If the Company decides to classify an equity instrument
as at FVTOCI, then all fair value changes on the
instrument, excluding dividends, are recognized in
OCI. There is no recycling of the amounts from OCI
to the Statement of Profit and Loss, even on sale of
equity instrument.

Equity instruments included within the FVTPL category
are measured at fair value with all changes recognised
in the Statement of Profit and Loss.

• Subsequent measurement of financial
liabilities

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

• those to be measured subsequently at fair value
through profit or loss (FVTPL)

• those measured at amortised cost

Following financial liabilities will be classified
under FVTPL:

• Financial liabilities held for trading

• Derivative financial liabilities

• Liability designated to be measured under FVTPL

All other financial liabilities are classified at
amortised cost.

For financial liabilities measured at fair value, changes
in fair value will recorded in the Statement of Profit and
Loss except for the fair value changes on account of
own credit risk are recognised in Other Comprehensive
Income (OCI).

Interest expense on financial liabilities classified under
amortised cost category are measured using Effective
Interest Rate (EIR) method and are recognised in
Statement of Profit and Loss.

• Derecognition of financial instruments

The Company derecognises a financial asset when the
contractual rights to the cash flows from the financial
asset expire, or it transfers the rights to receive the
contractual cash flows in a transaction in which
substantially all of the risks and rewards of ownership
of the financial asset are transferred or in which the
Company neither transfers nor retain substantially all of
the risks and rewards of ownership and does not retain
control of the financial asset.

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 and Loss.

• impairment of financial assets

The Company applies Expected Credit Loss (ECL) model
for measurement and recognition of impairment loss on
the financial assets mentioned below:

• Financial assets that are debt instrument and are
measured at amortised cost

• Financial assets that are debt instruments and are
measured as at FVOCI

• Trade receivables

The impairment methodology applied depends on
whether there has been a significant increase in credit
risk. Details how the Company determines whether there
has been a significant increase in credit risk is explained
in the respective notes.

For impairment of trade receivables, the Company
chooses to apply practical expedient of providing
expected credit loss based on provision matrix and does
not require the Company to track changes in credit risk.
Percentage of ECL under provision matrix is determined
based on historical data as well as futuristic information.

• Derivative financial instruments

initial measurement and subsequent measurement

The Company uses derivative financial instruments,
such as forward currency contracts to hedge 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 recognised in the Statement of Profit
and Loss.

s) Dividends

The final dividend on shares is recorded as liability on the
date of approval of shareholders, and the interim dividends
are recorded as liability on the date of declaration by the
Company’s Board of Directors.

t) Earnings per share (EPS)

Basic EPS is calculated by dividing the profit for the year
attributable to equity holders of the Company by the weighted
average number of equity shares outstanding during the
financial year, adjusted for bonus elements in equity shares
issued during the year and excluding treasury shares.

Diluted EPS adjust the figures used in the determination of
basic EPS to consider

• The after-income tax effect of interest and other
financing costs associated with dilutive potential equity
shares, and

• The weighted average number of additional equity
shares that would have been outstanding assuming the
conversion of all dilutive potential equity shares.

u) Operating Segment

Operating segments are reported in a manner consistent
with the internal reporting provided to the Chief Operating
Decision-Maker (CODM). The CODM, who is responsible
for allocating resources and assessing performance of the
operating segments, has been identified as the Managing
Director who makes strategic decisions.

identification of Segments

Operating segments are reported in a manner consistent
with the internal reporting provided to the Chief Operating
Decision-Maker (CODM). The CODM, who is responsible
for allocating resources and assessing performance of the
operating segments, has been identified as the Managing
Director who makes strategic decisions.

v) Government Grant

Grants from the government are recognised at their fair
value where there is a reasonable assurance that the grant
will be received and the Company will comply with all
attached conditions.

Government grants relating to income are deferred and
recognised in the Statement of Profit and Loss over the
period necessary to match them with the costs that they are
intended to compensate and presented within other income.

4) SIGNIFICANTACCOUNTING JUDGMENTS,
ESTIMATES AND ASSUMPTIONS

The preparation of the financial statements in conformity
with Ind AS, requires the management to make judgments,
estimates and assumptions that affect the amounts of
revenue, expenses, current assets, non-current assets,
current liabilities, non-current liabilities, disclosure of the
contingent liabilities and notes to accounts at the end
of each reporting period. Actual results may differ from
these estimates.

Judgments

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

Operating segment

Ind AS 108 Operating Segments requires Management
to determine the reportable segments for the purpose of
disclosure in financial statements based on the internal
reporting reviewed by the Managing Director being the Chief
Operating Decision Maker (CODM) to assess performance and
allocate resources. The standard also requires Management
to make judgments with respect to recognition of segments.
Accordingly, the Company recognizes Iron Castings, Tube
and Steel Segment as its three segments.

Contingent liability

The Company has received various orders and notices from
different Government authorities and tax authorities in
respect of direct taxes and indirect taxes. The outcome of
these matters may have a material effect on the financial
position, results of operations or cash flows. Management
regularly analyses current information about these matters
and discloses the information relating to contingent liability.
In making the decision regarding the need for creating loss
provision, management considers the degree of probability
of an unfavorable outcome and the ability to make a
sufficiently reliable estimate of the amount of loss. The
filing of a suit or formal assertion of a claim against the
Company or the disclosure of any such suit or assertions,
does not automatically indicate that a provision of a loss may
be appropriate.

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
estimates and assumptions on parameters available when the
financial statements are prepared. Existing circumstances
and assumptions about future developments, however, may
change due to market conditions or circumstances arising
that are beyond the control of the Company. Such changes
are reflected in the assumptions when they occur.

Defined benefit obligation

The cost of the defined benefit plans and other post¬
employment benefits and the present value of the obligations
are determined using actuarial valuation. 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,
mortality rates and future post-retirement medical benefit
increase. 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, management
considers the interest rates of government bonds in
currencies consistent with the currencies of the post¬
employment benefit obligations and extrapolated as needed
along the yield curve to correspond with the expected term of
the defined benefit obligation.

The mortality rate is based on publicly available mortality
tables. Those mortality tables tend to change only at
intervals in response to demographic changes. Future salary
increases are based on the expected future inflation rates for
the country.

Further details about defined benefit obligations are provided
in the respective note.

Deferred Tax

Deferred tax assets are recognised for all deductible
temporary differences including the carry forward of unused
tax credits and any unused tax losses. Deferred tax assets are
recognised to the extent that it is probable that taxable profit
will be available against which the deductible temporary
differences, and the carry forward of unused tax credits are
unused tax losses can be utilized.

Useful lives of Property, plant and equipment

Useful lives of property, plant and equipment are dependent
upon an assessment of both the technical lives of the
assets and also their likely economic lives based on various
internal and external factors including relative efficiency and
operating costs. The depreciable lives are reviewed annually
using the best information available to the Management.

Estimation and underlying assumptions are reviewed
on ongoing basis. Revisions to estimates are
recognised prospectively.

In the event of Liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the
Company after distribution of preferential amount. The distribution will be in proportion to the number of equity shares held by
the shareholders.

Securities premium

The amount in the Securities premium account represents the additional amount paid by the shareholders for the issued shares in
excess of the face value of those shares.

Share options outstanding account

The company offers ESOP, under which, options to subscribe for the Company’s share have been granted to specified senior management
employees. The Share options outstanding account balance represents fund created as per the companie's ESOP scheme.

Equity instruments through other comprehensive income

This represents the cumulative gains and losses arising on the revaluation of equity instruments measured at fair value through other
comprehensive income, under an irrevocable option, net of amounts reclassified to retained earnings when such assets are disposed off.

Capital reserve arising out of business combination

Capital reserve represents the gains of capital nature which mainly include the excess of value of net assets acquired over consideration
paid by the Company for business combination transactions and the same is not available for distribution as dividends.

Capital reserve arising out of Merger

This represents capital reserve on business combination which arises on transfer of business between entities under common control.

Security for Secured Loans

Working capital facilities with Consortium Banks (fund based and non fund based) aggregating to f840 Crores (previous year f 840 Crores)
are secured by first charge by way of hypothecation on the current assets both present and future, in favour of IDBI Trusteeship Services
Limited, as Security Trustees, for the benefit of consortium banks.

Commercial Papers outstanding as on 31st March 2026

1. On 24^th March 2026 f 100 Crores issued at a discounted rate of 7.65% p.a. payable on 12^th June 2026

2. On 25^th March 2026 f 100 Crores issued at a discounted rate of 7.65% p.a. payable on 23^rd June 2026

3. On 27^th March 2026 f 100 Crores issued at a discounted rate of 7.70% p.a. payable on 25^th June 2026

Commercial Papers outstanding as on 31st March 2025

1. On 30^th Dec 2024 f 125 Crores issued at a discounted rate of 7.72% p.a. paid on 05^th Jun 2025

2. On 13^th Mar 2025 f 100 Crores issued at a discounted rate of 7.68% p.a. paid on 11^th Jun 2025

3. On 21^st Mar 2025 f125 Crores issued at a discounted rate of 7.70% p.a. paid on 19^th Jun 2025

39.1 On November 21, 2025, the Government of India notified the four Labour Codes consolidating 29 existing labour laws. The Company
assessed and disclosed the impact of these changes on the basis of the best information available. Due to changes in the "wage
definition", the impact of T 17.66 crore related to gratuity and compensated absences has been recorded and disclosed under
"Exceptional Items" for the current year. The Company continues to monitor the finalisation of Central Rules, 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.

40 LEASES

The Company have taken various premises and plants and machinery under operating lease. These are generally cancellable and ranges
from 13 months to 10 years and are renewable by mutual consent on mutually agreeable terms. There are no restrictions imposed by these
lease arrangements and there are no sub leases. There are no contingent rents.

41 Earnings per equity share as calculated in accordance with Indian Accounting Standard

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the Company by the weighted average
number of equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the Company by the weighted average number
of equity shares outstanding during the year plus the weighted average number of equity shares that would be issued on exercise of
stock option.

The following reflects the income and share data used in the basic and diluted EPS computations:

i. 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 and
commodity risk. Financial instruments affected by market risk include borrowings, trade and other payables, foreign exchange
forward contracts, security deposit, trade and other receivables, deposits with banks.

The sensitivity analysis in the following sections relate to the position as at reporting dates. The sensitivity of the relevant income
statement item is the effect of the assumed changes in respective market risks. The analyses exclude the impact of movements in
market variables on the carrying values of gratuity and other post retirement obligations and provisions.

The Company's activities expose it to variety of market risks, including effect of changes in foreign currency exchange rate, interest
rate and commodity price.

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. At the reporting date the interest rate profile of the Companie's interest bearing financial instruments
are follows:

b. Foreign currency risk

Foreign currency risk is the risk that fair value or future cash flows of a financial instrument will fluctuate because of changes
in foreign exchange rate. The Company transacts business in its functional currency and in different foreign currencies. The
Companie’s exposure to the risk of changes in foreign exchange rates relates primarily to the Companie’s operating activities,
where revenue or expense is denominated in a foreign currency. The Company manages its foreign currency risk by hedging
foreign currency payables using foreign currency forward contracts. It negotiates the terms of those foreign currency forward
contracts to match the terms of the hedged exposure.

a. Trade receivables

Customer credit risk is managed by the Company’s established policy, procedures and control relating to customer credit risk
management. Credit exposure risk is mainly influenced by class or type of customers, depending upon their characteristics.
Credit risk is managed through credit approval process by establishing credit limits along with continuous monitoring of credit
worthiness of customers to whom credit terms are granted. Outstanding customer receivables are regularly monitored.

An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large number
of minor receivables are combined into homogenous category and assessed for impairment collectively. The calculation is
based on actual incurred historical data as well as futuristic information. The Company uses expected credit loss model to
assess the impairment loss. The Company uses a provision matrix to compute the expected credit loss allowance for trade
receivables. The provision matrix takes into account available external and internal credit risk factors.

c. Commodity price risk

Commodity price risk is a financial risk on the company’s financial performance which is affected by the fluctuating prices on
account of global and regional supply/demand. Fluctuations in the prices of commodities mainly depend on market conditions.
The company is subject to fluctuations in prices for the purchase of metallurgical coke, coking coal and iron ore which are the
major input materials for production of pig iron.

The company has an elaborate control procedure for finalising the prices of commodities through approval process from
designated Company officials. Every month the price trend of the materials, demand and supply position and market
intelligence report are reviewed and strategy is adopted before finalising the next consignment/quantities for subsequent
months. The Commodity Price Risk is managed without any hedging of the commodities.

ii. 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 such as primarily trade receivables and from its
investing activities, including deposits with banks and financial institutions, cash and cash equivalent and other financial instruments.

b. Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Companie’s treasury department in
accordance with the Companie’s policy. Investments of surplus funds are made only with approved counter parties. The
Company monitors rating, credit spreads and financial strength of its counter parties. Based on ongoing assessment the
Company adjust it's exposure to various counter parties.

c. Liquidity risk

Liquidity risk is the risk that the Company may not be able to meet its present and future cash flow and collateral obligations
without incurring unacceptable losses. Companie's objective is to, at all time maintain optimum levels of liquidity to meet its cash
and collateral requirements. The Company closely monitors its liquidity position and deploys a robust cash management system.
It maintains adequate sources of financing including overdraft, debt from domestic and international banks at optimised cost.
The Company has access to banks, capital and money market across debt, equity and hybrids.

44 CAPITAL MANAGEMENT

For the purpose of the Company’s capital management, capital includes issued equity capital and all other equity reserves attributable
to the equity holders of the Company. The primary objective of the Company’s capital management is to ensure that it maintains a strong
credit rating and healthy capital ratios in order to support its business and maximise shareholder value.

The Company manages its capital structure and makes adjustments to it 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.

No changes were made in the objectives, policies or processes for managing capital during the year ended 31^st March 2026 and
31^st March 2025.

Asset liability matching strategy

The Company has purchased insurance policy, which is basically a year-on-year cash accumulation plan in which the interest
rate is declared on yearly basis and is guaranteed for a period of one year. The Insurance company, as a part of policy rules makes
payment of all gratuity payouts during the year as per policy conditions. The policy, thus, mitigates the liquidity risk. However,
being a cash accumulation plan, the duration of assets is shorter compared to the duration of liabilities. Thus, the Company is
exposed to movement in interest rate (in particular, the significant fall in interest rates, which should result in a increase in liability
without corresponding increase in the asset).

47 Stock options schemes - Kirloskar Ferrous Industries Limited

KFIL Employee Stock Option Scheme 2017:

The Company has introduced employee stock option scheme. This employee equity-settled compensation scheme is known as
KFIL Employee Stock Option Scheme 2017 (“KFIL ESOS 2017/Scheme”). The employee stock option scheme is approved and
authorized by the Board of Directors. This scheme is designed to provide incentives to specified senior management employees
who are in the employment of the company and director(s), whether wholetime or otherwise, (other than promoters of the company,
persons belonging to promoters group, independent directors and directors holding directly or indirectly more than 10% of the
outstanding equity shares of the company). The specific employees to whom the options would be granted, and their eligibility
criteria would be determined by the Nomination and Remuneration Committee.

Options granted under KFIL ESOS 2017 would vest after 1 (one) year but not later than 4 (four) years from the date of grant of such
options. Options will be vested equally over four years. Vesting of options would be subject to continued employment with the
Company and thus the options would vest essentially on passage of time. In addition to this, the Nomination and Remuneration
Committee may also specify certain performance criteria subject to satisfaction of which the options would vest. Any option
granted shall be exercisable according to the terms and conditions as determined by the Nomination and Remuneration Committee
and as set forth in the Grant Letter. The exercise period shall be 3 (three) years from the date of vesting of options in case of
employee is in continuation of employment. The vested options can be exercised by the employee at any time within the exercise
period, or such other shorter period as may be prescribed by the Nomination and Remuneration Committee from time to time and
as set out in the Grant Letter. When exercisable, each option is convertible into one equity share. The options not exercised within
the exercise period shall lapse and the employee shall have no right over such lapsed or cancelled options. The shares arising out of
exercise of vested options shall not be subject to any lock-in period from the date of allotment of such shares under KFIL ESOS 2017.

Under the said scheme, Nomination and Remuneration Committee of the board of directors has granted following options to its
eligible employees

II. KFIL Employee Stock Option Scheme 2021:

The Company has introduced employee stock option scheme. This employee equity-settled compensation scheme is known as
KFIL Employee Stock Option Scheme 2021 (“KFIL ESOS 2021/Scheme”). The employee stock option scheme is approved and
authorized by the Board of Directors. This scheme is designed to provide incentives to specified senior management employees
who are in the employment of the company and director(s), whether wholetime or otherwise, (other than promoters of the company,
persons belonging to promoters group, independent directors and directors holding directly or indirectly more than 10% of the
outstanding equity shares of the company). The specific employees to whom the options would be granted, and their eligibility
criteria would be determined by the Nomination and Remuneration Committee.

Options granted under KFIL ESOS 2021 would vest after 1 (one) year but not later than 4 (four) years from the date of grant of such
options. Options will be vested equally over four years. Vesting of options would be subject to continued employment with the
Company and thus the options would vest essentially on passage of time. In addition to this, the Nomination and Remuneration
Committee may also specify certain performance criteria subject to satisfaction of which the options would vest. Any option
granted shall be exercisable according to the terms and conditions as determined by the Nomination and Remuneration Committee
and as set forth in the Grant Letter. The exercise period shall be 3 (three) years from the date of vesting of options in case of
employee is in continuation of employment. The vested options can be exercised by the employee at any time within the exercise
period, or such other shorter period as may be prescribed by the Nomination and Remuneration Committee from time to time and
as set out in the Grant Letter. When exercisable, each option is convertible into one equity share. The options not exercised within
the exercise period shall lapse and the employee shall have no right over such lapsed or cancelled options. The shares arising out of
exercise of vested options shall not be subject to any lock-in period from the date of allotment of such shares under KFIL ESOS 2021.

Under the said scheme, Nomination and Remuneration Committee of the board of directors has granted following options to its
eligible employees.

52 Disclosure pursuant to Ind AS 103 “Business Combinations":

Arrangement and Merger by Absorption of Oliver Engineering Private Limited and Adicca Energy
Solutions Private Limited -

The Board of Directors of the Company, at its meeting held on August 04, 2025, had approved the Scheme of Arrangement
and Merger by Absorption of Oliver Engineering Private Limited (‘OEPL’/‘Transferor Company 1’) and Adicca Energy Solutions
Private Limited (‘AESPL’/Transferor Company 2’) (together, the ‘Transferor Companies’) with the Company and their respective
Shareholders and Creditors (‘Scheme’).

Pursuant to the sanction of the Scheme by the Hon’ble National Company Law Tribunal, Mumbai (“NCLT”) vide order dated June
2, 2026, and filing of the requisite documentation with the Registrar of Companies, Pune, the Transferor Companies have been
absorbed by the Company with effect from the appointed date as per the Scheme, i.e. April 1, 2025.

In terms of the Scheme, all the assets, liabilities, reserves and surplus of the Transferor Companies have been transferred to and
vested in the Company. Accordingly, the financial results for the year ended March 31, 2026, originally approved by the Board of
Directors and filed with the stock exchange on May 7, 2026, have been updated to give effect to the Scheme and also the previous
year's figures have been restated as per Ind AS 103 - Business Combinations.

Further, as per the terms of the Scheme, the unabsorbed depreciation and carried forward losses of the Transferor Companies
stand transferred to and vested in the Company as on the Appointed Date. The management of the Company has evaluated the
tax effect on account of the said unabsorbed depreciation and carried forward losses relating to the Transferor Companies and
recognised an amount of R 141.28 Crores as deferred tax asset as on April 1, 2025, in compliance with Ind AS 12. During the financial
year 2025-26 these carried forward losses & unabsorbed depreciation have been adjusted and utilised for the computation of
income tax in compliance with the provisions of the Income Tax Act, 1961 and consequently R 110.38 crores of current tax expense
has been reversed in the updated financial results.

In accordance with the applicable stamp duty legislation, the Company will apply for adjudication of stamp duty payable on the
NCLT order sanctioning the Scheme. The exact amount of stamp duty is not determinable as on the date of approval of these
financial statements, as it is subject to assessment by the State authorities. Stamp duty liability, if any, will be accounted for in the
period in which the amount is determined by the authority.

Accounting Treatment

This Merger has been accounted in accordance with “Pooling of interest method” as laid down in Appendix C - ‘Business
Combinations of entities under common control’ of Ind AS 103 - 'Business Combinations' notified under Section 133 of the Act read
with the Companies (Indian Accounting Standards) Rules, 2015, as specified in the scheme and Ind AS Transition Facilitation Group
(ITFG) Clarification Bulletin 9 Issue 2, such that:

(a) All assets and liabilities of the Transferor Companies are stated at the carrying values as appearing in the consolidated financial
statements of the Company.

(b) The identity of the reserves has been preserved and are recorded in the same form and at the carrying amount as appearing in
the standalone financial statements of Transferor Companies.

(c) The inter-company balances between transferor companies and the company have been eliminated.

(d) Comparative financial information in the financial statements of the Company has been restated for the accounting impact of
merger, as stated above, as if the merger had occurred from the beginning of the comparative period.

55 Recent accounting pronouncements

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.

In May 2025, MCA notified amendments to Ind AS 21 - The Effects of Changes in Foreign Exchange Rates, applicable w.e.f. April 1, 2025.
The Company has reviewed the amendment and based on its evaluation has determined that it does not have any significant impact in its
financial statements.

In August 2025, MCA notified the following amendments to:

Ind AS 1 - Presentation of Financial Statements

The amendment relates to classification of liabilities as current or non-current and non-current liabilities with covenants. In the context
of classifying a liability as current, it removes the requirement of existence of a right to defer settlement for at least 12 months after
the reporting date and instead requires that the said right should exist on the reporting date and have substance. The amendment also
introduces guidance on classification of liabilities with covenants. The Company has no impact on these amendments in its classification
criteria of current and non-current liabilities.

Ind AS 7 - Statement of Cash Flows and Ind AS 107

Financial Instruments - Disclosures, applicable w.e.f April 1, 2025 - The amendment in Ind AS 7 requires to inform users of financial
statements of the existence of supplier finance arrangements and explain the nature of the arrangements, the carrying amount of liabilities
and the range of payment due dates. Ind AS 107 has been amended to add supplier finance arrangements as a factor that may cause
concentration of liquidity risk. The Company has reviewed the amendment and based on its evaluation has determined that it does not
have any significant impact on its financial statements.

Amendment issued but not effective (effective from April 01, 2026):

The Ministry of Corporate Affairs (MCA) through notification dated August 13, 2025, notified amendment to Ind AS 1, Presentation of
Financial statements. This amendment removes the carve-outs in Ind AS 1 from IAS 1 when there is a breach of a material covenant that
transforms the liability from non-current to current. The Company will evaluate the requirements and apply these amendments from the
effective date. However, presently the Company does not see any material impact on the financial statements.

56 Previous year's figures have been regrouped wherever considered necessary to make them comparable with those of the
current year.