xvi. Provisions, contingent liabilities and contingent
assets

Provisions are recognized when the Company
has a present legal or constructive obligation as a
result of past events, it is probable that an outflow
of resources will be required to settle the obligation
and the amount can be reliably estimated. These
are reviewed at each reporting period and reflect
the best current estimate. Provisions are not
recognized for future operating losses.

Where there are a number of similar obligations,
the likelihood that an outflow will be required
in settlement is determined by considering the
class of obligations as a whole. A provision is
recognized even if the likelihood of an outflow with
respect to any one item included in the same class
of obligations may be small.

The amount recognized as a provision is the best
estimate of the consideration required to settle the
present obligation at the end of the reporting period,
taking into account the risks and uncertainties
surrounding the obligation. When a provision is
measured using the cash flow estimated to settle
the present obligation, its carrying amount is the
present value of those cash flows.

Contingent liabilities are disclosed when there is
a possible obligation arising from past events,
the existence of which will be confirmed only by
the occurrence or non-occurrence of one or more
uncertain future events not wholly within the
control of the Company or a present obligation
that arises from past events where it is either
not probable that an outflow of resources will
be required to settle the obligation or a reliable
estimate of the amount cannot be made.

Contingent assets are not recognized in the
financial statements unless it is virtually certain
that the future event will confirm the asset’s
existence and the asset will be realized.

xvii. Employee benefits

(a) Short-term employee benefits

Liabilities for wages and salaries, including
non-monetary benefits that are expected
to be settled wholly within 12 months after
the end of the period in which the employees
render the related service are recognized in
respect of employees’ services up to the end
of the reporting period and are measured at
the amounts expected to be paid when the
liabilities are settled.

(b) Other Long-term employee benefits

The liabilities for earned leave is not expected
to be settled wholly within 12 months after
the end of the period in which the employees
render the related service. They are therefore
measured as the present value of expected
future payments to be made in respect
of services provided by employees up to
the end of the reporting period using the
projected unit credit method. The benefits
are discounted using the market yields at the
end of the reporting period that have terms
approximating to the terms of the related
obligation. Remeasurements as a result of
experience adjustments and changes in
actuarial assumptions are recognized in the
Statement of Profit and Loss.

The obligations are presented as current
liabilities in the Balance Sheet if the entity
does not have an unconditional right to defer
settlement for at least 12 months after the
reporting period, regardless of when the
actual settlement is expected to occur.

(c) Post-employment obligations

Defined benefit plans

The present value of the defined benefit
obligation is determined by discounting the
estimated future cash outflows by reference
to market yields at the end of the reporting
period on Government bonds that have terms
approximating to the terms of the related
obligation.

The net interest cost is calculated by
applying the discount rate to the net balance
of the defined benefit obligation and the fair
value of plan assets. This cost is included in
employee benefit expense in the Statement
of Profit and Loss.

Remeasurement gains and losses arising
from experience adjustments and changes in
actuarial assumptions are recognized in the
period in which they occur directly in Other
Comprehensive Income. They are included
in retained earnings in the Statement of
Changes in Equity and in the Balance Sheet.

Changes in the present value of the defined
benefit obligation resulting from plan
amendments or curtailments are recognized
immediately in profit or loss as past service
cost.

Defined Contribution plan

The Company has no further payment
obligations once the contributions have
been paid. The contributions are accounted
for as defined contribution plans and the
contributions are recognized as employee
benefit expense when they are due. Prepaid
contributions are recognized as an asset to
the extent that a cash refund or a reduction in
the future payments is available.

(d) Share based payments

The fair value of options granted under
the Employee Option Plan is recognized
as an employee benefits expense with a
corresponding increase in equity. The total
amount to be expensed is determined by
reference to the fair value of the options
granted:

• including any market performance
conditions (e.g., the entity’s share price)

• excluding the impact of any service
and non-market performance vesting
conditions (e.g. profitability, sales

growth targets and remaining an
employee of the entity over a specified
time period), and

• including the impact of any non-vesting
conditions (e.g. the requirement for
employees to save or holdings shares
for a specific period of time).

The total expense is recognized over the
vesting period, which is the period over which
all of the specified vesting conditions are to
be satisfied. At the end of each period, the
entity revises its estimates of the number
of options that are expected to vest based
on the non-market vesting and service
conditions. It recognizes the impact of
the revision to original estimates, if any,
in profit or loss, with a corresponding
adjustment to equity.

Where shares are forfeited due to a failure by
the employee to satisfy the service conditions,
any expenses previously recognized in
relation to such shares are reversed effective
from the date of the forfeiture.

Refer note 2A (xiii) in material accounting
policies above relevant to Employee benefits.

xviii. Cash dividend and non-cash distribution

The Company recognizes a liability to make cash
or non-cash distributions to equity holders of the
Company when the distribution is no longer at
the discretion of the Company. As per the Act, a
distribution is authorized when it is approved by
the shareholders in case of final dividend and by
the Board of Directors in case of interim dividend.
A corresponding amount is recognized directly in
equity.

xix. Earnings per share

(a) Basic earnings per share

Basic earnings per share is calculated by
dividing:

• the profit attributable to owners of the
Company

• by the weighted average number of
ordinary shares outstanding during
the financial year, adjusted for bonus
elements in ordinary shares issued
during the year.

(b) Diluted earnings per share

Diluted earnings per share adjusts the figures
used in the determination of basic earnings
per share to take into account:

• t he after income tax effect of interest
and other financing costs associated
with dilutive potential ordinary shares,
and

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

xx. Cash flow statement

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

xxi. Contributed equity

Equity shares are classified as equity.

Incremental costs directly attributable to the issue
of new shares or options are shown in equity as a
deduction, net of tax, from the proceeds.

xxii. Operating cycle

Based on the nature of products/activities of
the Company and the normal time between
acquisition of assets and their realization in cash
or cash equivalents, the Company has determined
its operating cycle as 12 months for the purpose
of classification of its assets and liabilities as
current and non-current.

xxiii. Exceptional Item

Exceptional item include income or expense that
are considered to be part of ordinary activities,
however, are of such significance and nature
that separate disclosure enables the user of the
financial statements to understand the impact
in a more meaningful manner. Exceptional items
are identified by virtue of either their size or nature
so as to facilitate comparison with prior periods
and to assess underlying trends in the financial
performance of the Company.

xxiv. Rounding of amounts

All amounts disclosed in the financial statements
and notes have been rounded off to the nearest
crores as per the requirement of Schedule III,
unless otherwise stated.

(iii) Leasing arrangements

(a) Operating leases

The Company has given certain investment properties on operating lease. These lease arrangements range for
a period between eleven to sixty months and include both cancellable and non-cancellable leases. Most of the
leases are renewable for further period on mutually agreeable terms. With respect to non-cancellable operating
leases, the future minimum lease receipts as at Balance Sheet date are as under:

Estimation of fair value:

The fair valuation is based on current prices in the active market for similar properties. The main inputs used
are quantum, area, location, demand, rental growth rates, expected vacancy rates, terminal yields and discount
rates. All resulting fair value estimates for investment properties are included in level 3. The Company obtains
independent valuations from registered valuers for its investment properties annually.

(v) The Company is in the process of getting expired lease renewed in respect of the Lower Parel land with gross
and net book value of ' 0.08 Lakhs (March 31,2025: ' 0.08 Lakhs).

*** 13,50,000 (March 31,2025: 13,50,000) equity shares of Ibiza Industries Limited have been pledged for loans / deposit taken by the
Company / other companies. 9,50,000 (March 31,2025: 9,50,000) equity shares not available for physical verification / confirmation
not available; currently under liquidation.

# 2,050 (March 31, 2025: 2,050) nos.- Not available for physical verification.

## Not available for physical verification / confirmation not available; currently under liquidation.

### The Company has investments in equity shares of co-operative banks at face value, required as per the bye-laws of these
institutions in order to take borrowings from such co-operative banks. The investments are non transferable and will be bought
back by the co-operative banks at face value upon the termination of the relationship. These investments are with dividend rights.

(2) Terms and rights attached to equity shares:

The Company has issued only one class of equity shares having a par value of ' 2/- per share (March 31,2025:
' 2/- per share). Every holder of equity shares is entitled to one vote per share held. The Company declares and
pays dividend in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the
shareholders at the Annual General Meeting except for interim dividend.

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 all preferential amounts in proportion to their shareholding.

(5) Aggregate number of shares issued for consideration other than cash:

(i) There have been no shares allotted as fully paid up pursuant to contract without payment being received in
cash or allotted as fully paid up by way of bonus shares or bought back, for the period of five years immediately
preceding the date as at which the Standalone Balance Sheet is prepared.

(ii) Shares reserved for issue under options:

Information relating to Mafatlal Industries Limited Employee share option scheme, including details of options
issued, exercised and lapsed during the financial year and options outstanding at the end of the reporting period,
is set out in Note 38.

“Current loans against properties from a bank aggregating to ' 11.01 (March 31, 2025: ' 15.37) is secured by
pari-passu charge on Land and Building of the Company at Nadiad measuring 3,66,392 sq. mtr (March 31,2025: 3,66,392 sq. mtr)
which is repayable on demand and carry an interest in the range of 9.40% p.a. to 10.00% p.a. (March 31,2025: 10.00% p.a. to 10.25%
p.a).

‘Working Capital loans from banks aggregating to ' NIL (March 31, 2025: ' 6.99) are secured by first pari-passu charge on certain
stocks and book debts, both present and future, of the Company, charge on certain property, pledge of 60,69,584 (March 31,2025:
47,24,454) equity shares of NOCIL Limited held by the Company. The working capital loans were repayable on demand and carry an
interest in the range of 8.55% p.a. to 10.00% p.a. (March 31,2025: 9.65% p.a. to 10.25% p.a).

‘‘‘Working Capital loan from bank aggregating to ' 3.00 (March 31, 2025: ' NIL) is unsecured.

For Liquidity risk information, refer Note 39.

Refer Note 48(b) for net debt reconciliation.

Note:

a. During the year ended March 31,2025, the Company entered into a Memorandum of Understanding (MOU) with
the Workers’ Union at its Nadiad location to reduce its workforce and accordingly recognized expenses towards
compensation payable as full and final settlement to its certain workers who accepted the offer and disclosed
the same as an exceptional item. The aforesaid MOU with the Workers’ Union at Nadiad location is no longer
effective for the remaining workers to opt for the offer.

b. Pursuant to the notification issued by the Ministry of Labour and Employment, multiple existing labour
legislations have been consolidated into a unified framework comprising four Labour Codes, collectively
referred to as the 'New Labour Codes’ which became effective from November 21, 2025. The Company has
reassessed its employee benefit obligations in accordance with the revised definition of wages. Accordingly, an
estimated incremental liability on gratuity provision has been recognized as an "Exceptional Item" during the
year ended March 31,2026. The Company is monitoring updates on the rules and clarifications by State and/or
Central Government authorities in relation to the New Labour Codes and impact of those will be evaluated and
accounted for in the period in which they are notified.

36(c) - The Taxation Laws (Amendment) Ordinance, 2019 ('ordinance') introduced section 115BAA of the Income-tax
Act, 1961 which allowed domestic Companies to opt for an alternative tax regime from financial year 2019-20. As per
the said tax regime, Companies are allowed to pay reduced income tax @ 22% (plus surcharge and cess) subject to
foregoing of certain exemptions / deductions which were allowed earlier. Pursuant to the aforesaid amendment, the
Company, has opted for lower rate of tax with effect from financial year ended March 31,2023.

36(d) - No aggregate amounts of current and deferred tax have arisen in the reporting periods which have been
recognized in Equity and not in Standalone Statement of Profit and Loss or Other Comprehensive Income.

Note 37 - Fair value measurements

(i) Financial Instruments by category and hierarchy

The fair values of the financial assets and liabilities are included at the amount at which the instrument could be
exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

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

- Fair value of cash and bank balances, trade receivables, current loans, trade payables, current borrowings
and other current financial assets and liabilities approximate their carrying amounts largely due to short
term maturities of these instruments.

- Financial instruments with fixed and variable interest rates are evaluated by the Company based on
parameters such as interest rates and individual credit worthiness of the counterparty. Based on this
evaluation, allowances are taken to account for expected losses of these receivables. Accordingly, fair value
of such instruments is not materially different from their carrying amounts.

- The interest rate on term deposits is at the prevailing market rates. Accordingly, fair value of such instrument
is not materially different from their carrying amounts.

- The interest rate on borrowing is at the prevailing market rates. Accordingly, fair value of such instruments
is not materially different from their carrying amounts.

For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair
values.

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments
by valuation technique:

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices.

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

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is
included in level 3. This is the case for unlisted equity securities, contingent consideration and indemnification
asset included in level 3.

(iii) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

- the use of quoted market prices for quoted shares.

- the fair value of the other unquoted equity investments is mainly pertaining to investments in co-operative
banks which are carried at amortized cost and the carrying amounts are equal to the fair values.

Note 38 - Share Based Payments
(a) Employee option plan

(i) The Mafatlal Employee Stock Option Scheme 2017 ('ESOS 2017') of Mafatlal Industries Limited was
approved by the Board of Directors of the Company at their meeting held on May 05, 2017 and finalized
on August 10, 2017. At the Annual General Meeting held on August 02, 2017, the shareholders approved
the creation of employee stock option pool of 6,95,000 equity shares of face value of ' 10/- each fully
paid up (before giving effect of sub-division) on such terms and such manner as the Board may decide in
accordance with the provisions of applicable law and ESOS 2017.

The Company has implemented ESOS 2017 with a view to attract and retain key talents working with the
Company by way of rewarding their performance and motivate them to contribute to the overall corporate
growth and profitability. The Nomination and Remuneration Committee ('NRC') administers ESOS 2017,
in compliance with the provisions of the Securities and Exchange Board of India (Share Based benefits)
Regulations, 2014 and amendments thereof from time to time.

(ii) During the financial year 2017-18, the NRC in its meeting held on November 10, 2017 has granted 1,38,000
options (before giving effect of sub-division) with a progressive vesting to certain senior management
employees under the ESOS 2017 and the vesting of options will be @15% on 1^st anniversary, 20% on
2^nd anniversary, 30% on 3^rd anniversary and remaining 35% on 4^th anniversary of the grant date. Once vested,
the options remain exercisable for a period of four years.

(iii) During the financial year 2019-20, the NRC in its meeting held on August 01, 2019 has granted 3,18,000
options (before giving effect of sub-division) to certain management cadre employees of the Company
under the ESOS 2017. The options granted vest after completion of one year from the date of grant i.e.
August 01,2020 and the vested options are exercisable for a period of four years after vesting.

(iv) During the financial year 2022-23, the NRC in its meeting held on May 28, 2022 has granted 3,20,000
options (before giving effect of sub-division) to certain management cadre employees of the Company
under the ESOS 2017. The options granted vest after completion of one year from the date of grant i.e. May
28, 2023 and the vested options are exercisable for a period of four years after vesting.

(v) Options are granted under the plan for no consideration and carry no dividend or voting rights until they
are exercised. When exercisable, each option is convertible into one equity share. The exercise price of the
options is fair market price of the share as on date of grant of options.

(vi) The options granted and number of shares mentioned are proportionately increased in accordance
sub-division of equity shares effective from November 25, 2022. Disclosures have been made after giving
effect to the sub-division of equity shares.

(vii) During the financial year 2024-25, the NRC in its meeting held on May 27, 2024 has granted 3,55,000
options (after giving effect of sub-division) to certain management cadre employees of the Company under
the ESOS 2017. The options granted vest after completion of one year from the date of grant i.e. May 27,
2024 and the vested options are exercisable for a period of four years after vesting.

Note: The earlier exercise price of the options granted on November 10, 2017, August 01, 2019 and May 28, 2022
were ' 322.70 per option, ' 78.65 per option and ' 181.00 per option respectively. The exercise price of these options
has been reduced [See Note 38(a)(vi) above].

(c) The weighted average share price at the dates of exercise of the options exercised during the year ended
March 31,2026 was ' 161.33 per share (March 31,2025: ' 131.80 per share).

Note 39 - Financial risk management

The Company’s business activities exposes it to a variety of financial risks, namely liquidity risk, market risk and
credit risk. The Company’s senior management and key management personnel have the ultimate responsibility for
managing these risks. The Company has a mechanism to identify and analyse the risks faced by the Company, to
set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and
systems are reviewed regularly to reflect changes in market conditions and the Company’s activities.

The Company’s senior management and key management personnel are supported by the finance team and
respective business divisions that provides assurance 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. The activities are designed to protect the Company’s financial results
and position from financial risks; and maintain market risks within acceptable parameters, while optimising returns.

(A) Management of liquidity risk

The principal sources of liquidity of the Company are cash and cash equivalents, borrowings and the cash
flow that is generated from operations. The Company believes that current cash and cash equivalents, tied
up borrowing lines and cash flow that is generated from operations is sufficient to meet requirements. The

Company is cognizant of reputational risk that are associated with the liquidity risk and such risk is factored
into the overall business strategy. Due to the dynamic nature of the underlying businesses, finance department
maintains flexibility in funding by having availability under committed credit lines.

Management monitors rolling forecasts of the Company’s liquidity position (comprising the undrawn borrowing
facilities below) and cash and cash equivalents on the basis of expected cash flows.

(B) Management of market risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in
the price of a financial instrument.

The size and operations of the Company result in it being exposed to the price risk, interest rate risk and foreign
exchange risk that arise from its use of financial instruments.

The above risks may affect income and expenses, or the value of the financial instruments of the Company.
The objective of the Management of the Company for market risk is to maintain this risk within acceptable
parameters, while optimising returns. The Company’s exposure to and the management of these risks is
explained below:

i) Price risk

The Company is mainly exposed to the price risk due to its investments in equity instruments. The price risk
arises due to uncertainities about the future market values of these investments.

Equity price risk is related to the change in market reference price of the investments in equity securities. In
general, these securities are not held for trading purposes. These investments are subject to changes in the
market price of securities.

Any new investment or divestment must be approved by the Board of Directors and Chief Financial Officer.

a) Price risk sensitivity analysis

As an estimation of the approximate impact of price risk, with respect to investments in equity instruments,
the Company has calculated the impact as follows:

ii) 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 risk of changes in market interest rate is limited
to borrowings which bear floating interest rate.

The Company’s fixed rate borrowings are carried at amortized cost. They are therefore not subject to interest
rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate
because of a change in market interest rates.

The Company manages interest rate risk by having a balanced portfolio of fixed and variable rate borrowings. As
at March 31,2026, approximately 34.99% of the Company’s borrowings is at variable rate of interest (March 31,
2025: 52.66%).

The exposure of the Company’s borrowing to interest rate changes at the end of the reporting period is as
follows:

b) Interest rate sensitivity

The exposure of the Company’s borrowings to interest rate changes at the end of the reporting period are
included in the table below. As at the end of the reporting period, the Company had the following exposure on
variable rate borrowings outstanding. Sensitivity is calculated based on the assumption that amount outstanding
as at reporting dates were utilized for the whole financial year:

iii) Foreign exchange risk

The Company has international operations and is exposed to foreign exchange risk arising from foreign currency
transactions. Foreign exchange risk arises from future commercial transactions and recognized financial assets
and liabilities denominated in a currency that is not the functional currency (?) of the Company. The risk also
includes highly probable foreign currency cash flows.

The Company is exposed to foreign exchange risk arising from various currency exposures, primarily with
respect to USD.

a) Foreign currency risk exposure

The year-end foreign currency exposures that have not been hedged by a derivative instrument or otherwise are
given below:

b) Foreign currency sensitivity

5% is the sensitivity rate used when reporting foreign currency risk and represents management’s assessment
of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes only outstanding
unhedged foreign currency denominated monetary items and adjusts their translation at the period end for a
5% change in foreign currency rates. The following table demonstrate the sensitivity to a reasonably possible
change in exchange rates, with all other variables held constant. The impact on the Company’s profit before tax,
due to changes in the fair value of monetary assets and liabilities, is as follows:

The Company is exposed to credit risk from its operating activities which primarily includes trade receivables,
security deposits, cash and cash equivalents, deposit with banks and other bank balances. Management has a
credit policy in place and the exposure to credit risk is monitored on an ongoing basis.

Cash and cash equivalents, deposit with banks and other bank balances

Credit risk related to cash and cash equivalent, deposit with banks and other bank balances is managed by
dealing with highly rated banks. Management does not expect any losses from non-performance by these
counterparties and the risk of default is negligible or nil.

Other financial assets

Other financial assets measured at amortized cost includes security deposits and other receivables. Credit risk
related to these assets are managed by monitoring the recoverability of such amounts continuously, while at the
same time the internal control system in place ensures that amounts are within defined limits. The Company
evaluates 12 months expected credit losses for all the financial assets (other than trade receivable) for which
credit risk has not increased. In case credit risk has increased significantly, the Company considers lifetime
expected credit losses for the purpose of provisioning (loss allowance).

Financial assets are written off when there is no reasonable expectations of recovery, such as a debtor failing to
engage in a repayment plan with the Company. Where loans or receivables have been written off, the Company
continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are
made, these are recognized as income in the Standalone Statement of Profit and Loss.

Trade receivables

Concentrations of credit risk with respect to trade receivables are limited, due to the customer base being large,
diverse and across sectors and countries. All trade receivables are reviewed and assessed for default on a
quarterly basis.

The Company considers the probability of default upon initial recognition of asset and whether there has been
a significant increase in credit risk on an ongoing basis through each reporting period. To assess whether there
is a significant increase in credit risk, the Company compares the risk of default occurring on asset as at the
reporting date with the risk of default as at the date of initial recognition. It considers reasonable and supportive
forwarding-looking information.

The Company’s assessment is that credit risk in relation to sales made to government customers or
sub-contractors to government is extremely low as the probability of default is insignificant; therefore the
provision for expected credit losses (ECL) is immaterial in respect of receivables from these customers.

For all non-government customers, the Company has used a practical expedient by computing the expected
credit loss allowance for trade receivables based on a provision matrix by taking into consideration payment
profiles over a period of 36 months before the reporting date and the corresponding historical credit loss
experience within this period. The historical loss rates are adjusted to reflect the current and forward looking
information on macro economic factors affecting the ability of customers to settle receivables. The expected
credit loss is based on aging of days, the receivables due and the expected credit loss rate. Further, the Company
has assessed credit risk on an individual basis in respect of certain customers in case of event driven situation
such as litigations, disputes, change in customer’s credit risk history, specific provision are made after evaluating
the relevant facts and expected recovery.

Note 40 - Capital Management

The Company's objectives when managing capital are to:

- safeguard Company's ability to continue as a going concern in order to provide returns for shareholders and benefits for other
stakeholders; and

- maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return
capital to shareholders, issue new shares or sell assets to reduce debt. For achieving this, the requirement of capital is reviewed
periodically with reference to operating and business plans. Apart from internal accrual, sourcing of capital is done through a
judicious combination of equity and borrowing, both short term and long term. Debt (total borrowings lease liabilities) to equity
ratio is used to monitor capital.

Loan Covenants

Under the terms of borrowing facilities, the Company is required to comply with the following covenants:

(i) Financial covenants:

• Total liabilities to net worth (total equity) below 3,

• Interest service coverage ratio above 2,

• Debt service coverage ratio above 1.25,

• Debt to EBITDA ratio below 2.

(ii) Non financial covenants:

• The Company to take prior written 'No Objection Certificate (NOC)' from the bank for the following:
a) In case of dilution of shareholding in NOCIL Limited below 10%.

As at March 31,2026 and as at March 31,2025, the Company has complied with the applicable covenants on the outstanding
exposure.

(i) Compensated Absences

The employees of the Company are entitled to compensated absences as per the policy of the Company. The
entire amount of the provision of compensated absences is presented as current, since the Company does
not have an unconditional right to defer settlement for the obligation. However, based on past experience, the
Company does not expect all employees to take the full amount of accrued leave or require payment within the
next 12 months. The following amounts reflect leave that is not expected to be taken or paid within the next
12 months.

(ii) Post employment obligations

(a) Defined Contribution Plans:

The Company contributes towards Employees State Insurance Scheme, Family Pension Fund, Superannuation
Fund and Provident Fund for certain employees. The contributions are normally based on a certain proportion of
the employee's salary. During the year, the Company has recognized contribution to these funds aggregating to
' 4.14 (March 31,2025: ' 4.00) (Refer Note 31).

(b) Defined Benefit Plans:Gratuity

The Company provides for gratuity as per the Company's scheme or applicable Act/Rules (last drawn basic
salary per month computed proportionately for 15 days multiplied by number of years of service) whichever is
more beneficial to the employees. As per the Company’s scheme, the amount of gratuity payable on retirement /
termination is payable to the employees based on last drawn basic salary per month computed proportionately
for 30 / 15 / 30 days (for number of years of service tenure of less than 15 years, more than 15 years but less
than 30 years and more than 30 years, respectively). The benefits vest after five years of continuous service. The
Company has established Fund to which the Company makes contribution for the employees. The Company
does not fully fund the liability and maintains a target level of funding to be maintained over a period of time
based on estimations of expected gratuity payments.

The charge on account of provision for gratuity has been included in 'Employee Benefits Expense’ in the
Standalone Statement of Profit and Loss except remeasurements i.e. actuarial gains and losses and the return
on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability which
are recognized in other comprehensive income.

Provident fund

In respect of certain employees, provident fund contributions are made to a separately administered trust. Such
contribution to the provident fund are charged to the Standalone Statement of Profit and Loss. In case of any
liability arising due to shortfall between the return from its investments and the guaranteed specified interest
rate, the same is provided for by the Company. The actuary has provided an actuarial valuation and the interest
shortfall liability, if any, has been provided in the books of accounts after considering the assets available with
the provident fund trust.

(iv) Risk Exposure

Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which
are detailed below:

Demographic Risk: This is the risk of variability of results due to unsystematic nature of decrements that include
mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligation
is not straight forward and depends upon the combination of salary increase, discount rate and vesting criteria.
It is important not to overstate withdrawals because in the financial analysis the retirement benefit of a short
career employee typically costs less per year as compared to a long service employee.

Asset volatility: The plan liabilities are calculated using a discount rate set with reference to bond yields; if plan
assets underperform this yield, this will create a deficit.

Salary Inflation Risk: Higher than expected increases in salary will increase the defined benefit obligation.

Interest-Rate Risk: The defined benefit obligation calculated uses a discount rate based on government bonds.
If bond yields fall, the defined benefit obligation will tend to increase.

(v) Defined Benefit Liability and Employer Contributions

Expected contributions to post-employment benefit plans for the year ending March 31,2027 are ' 3.27
The weighted average duration of the defined benefit obligation is 8 years (March 31,2025: 8 years).

The expected maturity analysis of undiscounted gratuity is as follows:

(a) The Company is a lessee in respect of the land on which Mafatlal Centre and Mafatlal Chambers is erected. In
this regard:

In case of Mafatlal Centre:

A demand for ' NIL (March 31, 2025: ' 26.97) for the period 2008-10 was raised by Brihanmumbai
Mahanagarpalika ('BMC') towards property taxes in respect of the properties owned by various owners for the
respective floors with respect to increase in ratable value of Municipal taxes. The demand had been challenged
by owners of various floors and during the financial year ended March 31, 2024, the concerned adjudicating

authority set aside the aforesaid demand which was challenged and revised the demand to ' 11.20, which was
subsequently paid by the owners of the respective floors. During the year ended March 31,2025, the Company
has received the No Due Certificate with respect to these dues.

In case of Mafatlal Chambers:

A demand for ' NIL (March 31,2025: ' 7.93) for the period 2000-05 has been raised by BMC towards property
taxes in respect of the properties owned by the Company at the relevant time. The said demand has been
disputed by the Company. As per the directions given by the Honourable Bombay High Court, the matter was
heard by BMC in the pervious year and the said demand was struck off in full. During the financial year, the
Company has received the No Due Certificate with respect to these dues.

(b) It is not practicable for the Company to estimate the timing of cash flows, if any, in respect of the above pending
resolution of the respective proceedings. The aforementioned amounts under disputes are as per the demands
from various authorities for the respective periods and has not been adjusted to include further interest and
penalty leviable, if any.

(c) The Company does not expect any reimbursement in respect of the above contingent liabilities.

(d) The Company believes that the ultimate outcome of these proceedings will not have a material adverse effect
on the Company’s financial position and results of operations.

(e) Contingent liability relating to determination of provident fund liability, based on judgement from Hon’ble
Supreme Court, is not determinable at present for the period prior to March, 2019, due to uncertainty of the
impact of the judgement in the absence of further clarification relating to applicability. The Company has paid
Provident Fund to employees as applicable with effect from March 2019. The Company will continue to assess
any further developments in this matter for its implication on the financial statements, if any.

Note 45 - Segment information

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating
Decision Maker ("CODM") of the Company. The CODM consists of Chairman and Managing Director who are
responsible for allocating resources and assessing performance of the operating segments.

The Company has identified and reported the following business segments:

a) Textile and related products

b) Digital infrastructure

c) Consumer durables and others
Segment revenue, expenses and results:

The revenue and expenses which are directly attributable to any business segment are reported under each reportable
segment. The revenue and expenses which are not directly attributable to any business segment are shown as
unallocable expenditure (net of unallocable income, including income from investments and investment properties).

Segment Assets and Liabilities:

Segment assets include all operating assets used by the operating segment and mainly consist of property, plant
and equipment, trade receivables, inventories and other operating assets. Segment liabilities primarily includes trade
payable and other liabilities. Common assets and liabilities which can not be allocated to any of the business segment
are shown as unallocable assets / liabilities.

Note - Information concerning the classification of securities:

Options granted to employees under the Mafatlal Employee Stock Option Scheme 2017 ('ESOS 2017') are considered
to be potential equity shares. They have been included in the determination of diluted earnings per share to the extent
to which they are dilutive. The options have not been included in the determination of basic earnings per share.
Details relating to the options are set out in Note 38.

Note 47 - Government Grants

Export Promotion Capital Goods (EPCG): This scheme allows import of certain capital goods including spares at
concessional duty subject to an export obligation for the duty saved on such capital goods. The duty saved on capital
goods imported under EPCG scheme being Government Grant, is accounted as a Capital Grant as stated in the
accounting policy on Government Grants [Refer note 2(B)(iii)].

Technology Upgradation Fund Scheme (TUFS): The Company is entitled to subsidy, on its investment in the property,
plant and equipment, on fulfilment of the conditions stated in the Scheme.

Note - 49

(a) (i) On September 11,2024 the Board of Directors of the Company approved a strategic investment of ' 0.60 in

Pieflowtech Solutions Private Limited (PSPL), a Subsidiary company representing 60% of the paid-up share
capital of PSPL.

(ii) On July 19, 2025 the Board of Directors of the Company approved a strategic investment of ' 0.51 in
Mafatlal Apparel Exports Private Limited (MAEPL), a Subsidiary company representing 51% of the paid-up
share capital of MAEPL.

(b) The Board of Directors of the Company at its meeting held on November 14, 2022, approved the scheme of
reduction and reorganization of capital ('Scheme') pursuant to the provisions of Section 230 and other applicable
provisions of the Companies Act, 2013 which was also subsequently approved by the shareholders and creditors
of the Company with Appointed Date as mentioned in the Scheme as April 01,2022. The National Company Law

Tribunal, Ahmedabad ('NCLT'), vide its order dated April 29, 2024 (the 'NCLT order’) had approved the Scheme
with the Appointed Date / Effective Date as March 31, 2024, in respect of which the Company had filed an
interlocutory application on May 06, 2024 seeking modification with a plea to reinstate the Appointed date as
April 01,2022, in accordance with the Scheme filed on October 10, 2023. Accordingly, no accounting effect was
given in the financial statements for the financial year ended March 31,2024, which was further supported by a
legal opinion obtained by the Company. The aforesaid interlocutory application was heard by the NCLT on June
13, 2024, where the Company additionally filed further application seeking change in Appointed Date to March
31,2023. The NCLT vide its order dated June 27, 2024, allowed Appointed date as March 31,2023. Accordingly,
the Company has given the accounting effect to the reserves and surplus balances during the financial year
ended March 31,2025. (Refer Note 17)

Note - 50

(i) As legally advised, the Company has not recognized as income recovery of rent and other charges of ' 0.84 upto
March 31,2026 (' 0.84 upto March 31,2025) pending final resolution of legal dispute with certain ex-tenants of
a property in South Mumbai. At present, the legal dispute is pending with the Hon'ble Bombay High Court. A sum
of ' 5.78 and ' 2.84 was (towards interest accrued) withdrawn by the Company in accordance with the Orders
passed by the Hon’ble High Court of Bombay on the Civil Revision Applications filed by the ex-tenants and the
said amount of ' 5.78 and ' 2.84 has been included in other non-current financial liabilities (Refer Note 19).

(ii) In an earlier year, the Company had sold part of its leasehold land at its Mazgaon unit. During prior years, the
Company has surrendered the remaining leasehold land (reserved portion admeasuring about 27,287.82 square
meters) to Municipal Corporation of Greater Mumbai for the purpose of extension of V.J.B. Udyan. The Company
is also required to recommence the spinning activity of 10,000 spindles and the developer is required to construct
and handover the same to the Company in accordance with the development laws, regulations and notification,
this matter is subjudice.

(iii) Pursuant to the demerger of the Real Estate and Investment Business to Sulakshana Securities Limited (SSL)
in 2002, the shareholders of the Company are to be issued one equity share of ' 10/- each (before giving effect
of sub-division), fully paid-up, in SSL for every 500 shares of ' 100/- each, fully paid-up, held in the Company as
consideration for the demerger, aggregating to ' 0.01. As the shareholders of the Company would be entitled to
receive only fractional shares of SSL, the rehabilitation scheme sanctioned by Board for Industrial and Financial
Reconstruction (BIFR) envisages that these shares would be acquired by Navin Fluorine International Limited
(NFIL) and the shareholders of the Company would receive proportionate payment in consideration thereof. The
Company has received the said amount of ' 0.01 from NFIL on behalf of the shareholders, which is pending
disbursement upon completion of formalities.

Note 53 - Additional regulatory information required by Schedule III

(i) Details of benami property held

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

(ii) Wilful defaulter

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

(iii) Relationship with struck off companies

The Company has no transactions with the companies struck off under Companies Act, 2013 or Companies Act,
1956.

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

Refer Note 49(b)

(v) Valuation of Property, plant and equipment, intangible asset and investment property

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

(vi) Utilization of borrowed funds and share premium

The Company has not advanced or loaned or invested funds to any person or entity, including foreign entities
(Intermediaries) with the understanding that the Intermediary shall:

a. 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

b. provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

The Company has not received any fund from any person or entity, including foreign entities (Funding Party) with
the understanding (whether recorded in writing or otherwise) that the Company shall:

a. 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

b. provide any guarantee, security or the like on behalf of the ultimate beneficiaries

(vii) Undisclosed income

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments
under the Income Tax Act, 1961, that has not been recorded in the books of account.

(viii) Details of crypto currency or virtual currency

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

(ix) Utilization of borrowings availed from banks and financial institutions

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

(x) Compliance with number of layers of companies

The Company has complied with the number of layers prescribed under the Companies Act, 2013, read with the
Companies (Restriction on number of layers) Rules, 2017.

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

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

(xii) Borrowing secured against current assets

The Company has borrowings from banks on the basis of security of current assets. The quarterly returns or
statements of current assets filed by the Company with banks and financial institutions are in agreement with
the books of accounts.

Note 54 - Events occurring after reporting period

Refer Note 17(a) for the final dividend recommended by the Board of Directors which is subject to the approval of
shareholders in the ensuing annual general meeting.

Note 55 - The Standalone Financial Statements were authorized for issue by the Board of Directors on May 05, 2026.

The accompanying notes are an integral part of these standalone financial statements.