అకౌంట్స్ గమనికలుTruAlt Bioenergy Ltd.

(m) Provisions and contingent liabilities

(a) Provisions are recognised when there is a present obligation as a result of a past event, and it is probable that
an outflow of resources embodying economic benefits will be required to settle the obligation and there is a reliable

estimate 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 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.

(b) Contingent liabilities exist 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 or the amount cannot be reliably estimated. Contingent liabilities are
appropriately disclosed unless the possibility of an outflow of resources embodying economic benefits is remote.

(c) Contingent asset is not recognised in the standalone financial statements; however, is disclosed where an inflow
of economic benefits is probable.

(d) Provisions, Contingent liabilities, and Contingent assets are reviewed at each balance sheet date.

(n) Employee Benefits
Short-term obligations

Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12
months after the end of the year in which the employees render the related service are recognised in respect of
employees'' services up to the end of the year and are measured at the amounts expected to be paid when the
liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet.

Other long-term employee benefit obligations

Defined contribution plan

Contribution towards Provident Fund and Employees'' State Insurance Scheme is made to the regulatory authorities,
where the Company has no further obligations. Such benefits are classified as Defined Contribution Schemes as
the Company does not carry any further obligations, apart from the contributions made on a monthly basis which
are charged to the Statement of Profit and Loss.

Defined benefit plans

The Company provides for gratuity, a defined benefit unfunded plan (the ''Gratuity Plan"") covering eligible
employees in accordance with the Code on Social Security, 2020. The Gratuity Plan provides for a lump sum
payment to be made to vested employees at the time of retirement, death, incapacitation or termination of
employment, of an amount based on the respective employee''s salary. The Company''s liability is actuarially
determined (using the Projected Unit Credit method) at the end of each period. Remeasurements of the net defined
obligation are recognised directly within equity. The remeasurements include:

(i) Actuarial gains and losses

(ii) Return on plan assets (interest exclusive)

(iii) Any asset ceiling effects (interest exclusive).

Leave encashment

The liabilities for earned leave are not expected to be settled wholly within twelve months after the end of the
reporting 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 as determined by actuarial valuation. The benefits are
discounted using the market yields at the end of the reporting period that have terms approximating the terms of
the related obligation. Remeasurements as a result of experience adjustments and change in actuarial
assumptions are recognised 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
twelve months after the reporting period, regardless of when the actual settlement is expected to occur.

(o) Financial Instrument

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.

(ii) Financial liabilities

Initial recognition and measurement

financial liabilities at fair value through profit or loss and at amortised cost, as appropriate.All financial liabilities are
recognised initially at fair value and, in the case of borrowings and payables, net of directly attributable transaction
costs.

Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial
liabilities designated upon initial recognition as at fair value through profit or loss. Separated embedded derivatives
are also classified as held for trading unless they are designated as effective hedging instruments. Gains or losses
on liabilities held for trading are recognised in the Statement of Profit and Loss.

Amortised cost

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost, using
the Effective Interest Rate (EIR) method. Gains and losses are recognised in the Statement of Profit and Loss when
the liabilities are derecognised as well as through the EIR amortisation process. Amortised cost is calculated by
taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR.
The EIR amortisation is included as finance costs in the Statement of Profit and Loss.

Derecognition

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

(iii) Offsetting financial instruments

Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally
enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realize the
asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events
and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of
the Company or the counterparty.

(p) Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with
an original maturity of three months or less, that are readily convertible to a known amount of cash and subject to
an insignificant risk of changes in value.

(q) Earnings Per Share

Basic EPS is calculated by dividing the profit/loss for the period attributable to equity holders of the Company after
deducting preference dividend by the weighted average number of equity shares outstanding during the year.

Diluted EPS is calculated by adjusting the figures used in the determination of basic EPS to consider:

- The interest 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.

(r) Rounding off amounts

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

3 Significant accounting judgments, estimates and assumptions

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

3.1 Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the year end date, tha1
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 bases its assumptions and estimates on parameters available
when the financial statements are prepared. Existing circumstances and assumptions about future developments,
however, may change due to market changes or circumstances arising that are beyond the control of the Company.
Such changes are reflected in the assumptions when they occur.

(a) Taxes

Deferred tax assets are recognised for all deductible temporary differences and unused tax losses to the extent that
taxable profit would probably be available against which the losses could be utilised. Significant judgement is
required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and
the level of future taxable profits together with future tax planning strategies. The Company reviews the carrying
amount of deferred tax assets and liabilities at each balance sheet date with consequential change being given
effect to in the year of determination.

(b) Defined benefit plans (gratuity benefits)

The cost of the defined benefit plans such as gratuity and leave encashment are determined using actuarial
valuations. An actuarial valuation involves making various assumptions that may differ from actual developments
in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due
to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive
to changes in these assumptions. All assumptions are reviewed at each period end.

The principal assumptions are the discount and salary growth rate. The discount rate is based upon the market
yields available on government bonds at the accounting date with a term that matches that of liabilities. Salary
increase rate takes into account of inflation, seniority, promotion and other relevant factors on a long term basis.
For details refer note 37.

(c) Estimation of Net Realisable value for Inventories

Inventory is stated at the lower of cost and net realizable value (NRV). NRV for completed inventory is assessed by
reference to market conditions and prices existing at the reporting date and is determined by the Company, based
on comparable transactions identified.

(d) Useful life of Property, Plant and Equipment and Intangible Assets

The Company reviews the useful life of property, plant and equipment/intangible assets at the end of each reporting
period. This reassessment may result in change in depreciation expense in future periods.

4 New and Amended Standards

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:

1. Ind AS 1, Presentation of Financial Statements, applicable w.e.f. April 1, 2025 - The amendment relates tc
classification of liabilities as current or noncurrent 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 of these amendments in its classification criteria of current and non-current liabilities.

2. 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 in its financial statements.

A. Terms of repayment

(i) During the financial year 2022-23, the Company has obtained a consortium Term loan 1 Indian Renewable Energy
Development Agency Limited(IREDA) and Union Bank of India (UBI) amounting to ? 88,400.00 lakhs with a distribution ratio
of 70:30. The loan carries an interest rate of 1 year MCLR plus 2.80% p.a. and the disbursed amount of ? 87,306.00 lakhs
was scheduled for repayment in 28 quarterly instalments, with monthly interest payments commenced from 27 March 2023.
As per the loan agreement, the said loan was taken for the purpose of acquisition of 1400 KLPD ethanol distilleries located
at 3 different locations in Karnataka.

(ii) The Company has obtained a consortium Term loan 2 from Indian Renewable Energy Development Agency Limited
(|ReDA) and Union Bank of India (UBI) during the year ended 31 March 2024, amounting to ? 45,000.00 lakhs with a
distribution ratio of 70:30. The loan carries an interest rate of 1 year MCLR plus 2.80% p.a. and the disbursed amount of ?
45,000.00 lakhs is scheduled for repayment in 28 quarterly instalments, with monthly interest payments commenced from
31 July 2023. As per the loan agreement, the said loan was taken for the purpose of expansion of ethanol distilleries by 600
KLPD located at 3 different locations in Karnataka.

(iii) The Company has obtained Term loan 3 from Indian Renewable Energy Development Agency Limited (IREDA) during the
year ended 31 March 2025, amounting to ? 20,766.00 lakhs is scheduled for repayment in 24 quarterly instalments. Initially
the loan carries an interest rate of 11.40% plus 0.50% p.a. till the commissioning of the project and the disbursed amount of
? 15,575.00 lakhs, with monthly interest payments commenced from 31 January 2025. During year ended 31 March 2026,
an additional amounting to ? 4,150.00 lakhs disbursed and total disbursement made till 31st March 2026 of ? 19,725 lakhs.
The applicable rate of interest as at 31 March 2026 is 10.95% p.a. The repayment of principal amount will commence from
31 December 2026. As per the loan agreement, the said loan was taken for the purpose of Grain based expansion of ethanol
distilleries by 1000 KLPD located at 2 different locations in Karnataka.

(iv) As per the Sanction letter of SBI Letter No: SBI/ADV/BGM/2023-24/07 Dated : 06.01.2024, UBI was replaced by State
Bank of India (SBI) for term loan 1 as the party to consortium. The interest rate on loan is modified from interest rate of 1
year MCLR plus 2.80% p.a to 6 Month SBI MCLR plus 1.55%.

(v) On 23 January 2024, the consortium agreement for Term loan 2 sanctioned was modified where the entire term loan is
taken over by IREDA and UBI is no longer a party to the consortium agreement. The interest rate on loan is modified from
interest rate of 1 year MCLR plus 2.80% p.a. to IREDA Grade-4 pertaining to ethanol (with existing sugar plant) which is
presently 11.30% plus 0.5% till commissioning. The repayment of principal amount has commenced from March 31 2025
instead of March 31 2024.However, the current weighted average coming out to be 10.52%.

(vi) The vehicle loan amounting to ? 38.37 Lakhs was sanctioned by HDFC which carries an interest rate of 8.60 % p.a. and
is scheduled for repayment in 60 monthly instalments, with monthly interest payments commencing from 07 September
2024. The Company has used such borrowings for the purposes as stated in the loan agreement.

(vii) The vehicle loan amounting to ? 24.45 Lakhs was sanctioned by Bank of India which carries an interest rate of 8.85%
p.a. and is scheduled for repayment in 36 monthly instalments, with monthly interest payments commencing from March
30, 2024.

(viii) The vehicle loan amounting to ? 32.18 Lakhs was sanctioned by HDFC which carries an interest rate of 8.95 % p.a. and
is scheduled for repayment in 60 monthly instalments, with monthly interest payments commencing from 07 February 2025.
The Company has used such borrowings for the purposes as stated in the loan agreement.

*The difference between carrying value of borrowings and repayment schedule is due to EIR adjustment been made as per
Ind AS 109.

Term loans contain certain debt covenants relating to limitation on indebtedness, fixed asset coverage ratio, and debt
service coverage ratio. The limitation on indebtedness covenant gets suspended if the Company meets certain prescribed
criteria. The debt covenant related to limitation on indebtedness remained suspended as of the date of the authorisation
of the financial statements. The Company has satisfied all other debt covenants prescribed in the terms of loan. The
Company has not defaulted on any loans payable.

A. Disaggregation of revenue from contracts with customers

(i) Revenue is attributable to sale of ethanol, diesel, steam and allied products and it is recognised upon satisfaction
of the performance obligations which is typically upon delivery, majorly for Oil Marketing Companies (OMC) and Ex¬
Works, for companies other than OMCs (i.e., point in time). The Company''s primary customers for ethanol sales are
public sector Oil Marketing Companies (OMC) in India.

As of 31 March 2026, there are no unsatisfied performance obligations or contractual liabilities

(ii) Revenues from customers: 4 Customers (31 March 2025: 4 Customers) represented more than 10% or more of the
Company''s revenues amounting to ? 1,30,921.30 lakhs (31 March 2025: ? 1,60,050.79 lakhs).

* The Government of Karnataka vide its order no.CI 227 SPI 2022(e), Bengaluru dated 11-05-2023, has sanctioned
special incentive to the company for their ethanol production at its plants, considering the project as Super Mega
Enterprise under the new Industrial Policy 2020-25. On the basis of the above order, the Company has submitted the
claim application with the Department of Commerce and Industry for FY 2022-23, FY 2023-24. For FY 2024-25 and FY
2025-26, the Company will submit the claim application within the due date and management believes that there is
reasonable assurance that it will be realised considering approvals received for earlier years. The company has
recognized such amount receivable under the Investment subsidy scheme, being 1.75% of the eligible turnover, as
Performance Linked Incentive (''PLI'') in its books. As the PLI is directly linked to the operating sales, it is disclosed
under the head ''other operating revenue''.

The tax rate used for 31 March 2026 is 25.168 % (31 March 2025: 25.168%).There is no liability for the Current Tax as
the Company has tax losses and MAT provisions are not applicable to the Company as it has opted for section 115BAA.
The calculation of the Company''s total tax charge involves a degree of estimation and judgement in respect of certain
items whose tax treatment cannot be finally determined until resolution has been reached with tax authorities. Whilst
the ultimate liability for such matters may vary from the amounts provided and is dependent upon the outcome of agree¬
ments with the relevant tax authorities, or litigation where appropriate, the Company continues to consider that it has
made appropriate provision for periods which are open and not yet agreed by the tax authorities. Each year manage¬
ment completes a detailed review of uncertain tax positions across the Company and makes provisions based on the
probability of the liability arising.

35 Business combinations
TruAlt Gas Private Limited

During the financial year 2025-26 the Board of Directors of the Company at its meeting held on October 19, 2025 has
approved the purchase of 35,08,807 @ Rs. 24/ equity shares of TruAlt Gas Private Limited. ("TGPL") from its sharehold¬
er. On October 27, 2025, the Company acquired such shares constituting 51% of the paid-up share capital of TGPL,
resulting to gain of control as per Ind AS 103 - Business combinations, thereby making TGPL a subsidiary of the Compa¬
ny. Subsequently infused additional capital of ?20,00,00,000, pursuant to which the Company''s shareholding increased
to 77.84% as at the December 15, 2025. Further, TGPL allotted 80,06,536 equity shares to Nirani Holdings Private Limit¬
ed by way of right issue, bring down the holding of the Company again to 51%, which stands same as on the reporting
date.

36 Earnings per share

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

Diluted earnings per share amounts are calculated by dividing the profit attributable to equity holders (after adjusting for
interest on the compulsorily convertible preference shares) by the weighted average number of equity shares outstand¬
ing during the year plus the weighted average number of equity shares that would be issued on conversion of all the
dilutive potential equity shares into equity shares.

(B) Defined benefit plans
Gratuity Plan

The employees'' Gratuity Fund Scheme, which is a defined benefit plan, is unfunded. Under the gratuity plan, every
employee who has completed at least five years of service gets a gratuity on departure at 15 days of last drawn basic
salary for each completed year of service. The present value of obligation is determined based on actuarial valuation
using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of
employee benefit entitlement and measures each unit separately to build up the final obligation.

Aforesaid post-employment benefit plans typically expose the Company to actuarial risks such as: investment risk,
interest rate risk, longevity risk and salary risk.

Interest Risk

The present value of the defined benefit liability is calculated using a discount rate which is determined by reference to
market yields at the end of the reporting year on Government securities. A decrease in yields will increase the fund liabili¬
ties and vice-versa.

Longevity Risk

The present value of the defined benefit liability is calculated by reference to the best estimate of the mortality of plan
participants both during and after their employment. An increase in the life expectancy of the plan participants will
increase the plan''s liability.

Salary Escalation Risk

The present value of the defined benefit liability is calculated by reference to the future salaries of plan participants.
Deviation in the rate of increase of salary in future for plan participants from rate of increase in salary used to determine
the present value of obligation will have a bearing on the plan''s liability.

Refer Note 54 for details of share pledged by the promoters (Vijaykumar Murugesh Nirani, Sangamesh Rudrappa Nirani,
Vishal Nirani, Kamala Murigeppa Nirani, Draksyani S Nirani and Sushmita Vijay Nirani) as security for borrowings availed
by the Company.

(D) Terms and conditions of transactions with related parties

The transactions with related parties are made on terms equivalent to those that prevail in arm''s length transactions.
Outstanding balances at the end of reporting period are unsecured and interest free and settlement occurs in cash. For
the year ended 31 March 2026, the Company has not recorded any impairment of receivables relating to amounts owed
by related parties. This assessment is undertaken each financial year through examining the financial position of the
related party and the market in which the related party operates.

1. Outstanding balances of related parties at the year end are unsecured and settlement takes place in cash.

2. Remuneration does not include Provision for Leave Encashment and Gratuity as it is provided in the books on the
basis of actuarial valuation for the Company as a whole and hence individual figures cannot be identified. The
amounts are not expected to be material.

3. Transaction entered into with related parties are made on terms equivalent to those that prevail in arm''s length
transactions.

4. There have been no guarantees provided or received for any related party receivables or payables.

5. For the year ended 31 March 2026, the Company has not recorded any impairment of receivables relating to
amounts owed by related parties (31 March 2025: Nil). This assessment is undertaken each financial year through
examining the financial position of the related party and the market in which the related party operates.

6. All above figures are net of taxes wherever applicable.

39 Segment reporting

The Company is primarily engaged in the business of manufacture and sale of biofuels. As such, the Company operates
in a single segment and there are no separate reportable segments. The same is basis confirmation received from the
Chief Operating Decision Maker (CODM).

40 Disclosures of financial instruments

The Company subsequently measured financial assets and liabilities at amortised cost and therefore there are no financial
instruments which are subsequently measured at fair value except investment in mutual funds. The financial liabilities
primarily relates to floating rate borrowings. The management has assessed that fair value of financial assets and
financial liabilities except investment in mutual funds, is not significantly different from its amortised cost.

40.1 Financial assets and liabilities

The following tables presents the carrying value and fair value of each of financial assets and liabilities:

Notes:

1 The fair value of cash and cash equivalents, other bank balances, trade receivables, loans receivable, security deposits
given and other financial assets, borrowings, trade payables, trade credits and other financial assets and liabilities
approximate their carrying amount largely due to the nature of these instruments. The Company''s loans given and
borrowings have been contracted at market rates of interest based on its credit rating. Accordingly, the carrying value of
such loans approximate fair value.

2 Investments in mutual funds is recorded at fair value. The fair values represent the Net Asset Value ("NAV") as stated by
the issuers of these mutual fund units in the published statements. NAVs represent the price at which the issuer will issue
further units in the mutual fund and the price at which the issuer will redeem such units from the investors.

3 The Company has not disclosed fair value of lease liabilities in accordance with Ind AS 107.

4 Investment in equity shares of subsidiaries which are carried at cost, net of impairment and hence are not required to be
disclosed as per Ind AS 107 "Financial Instruments Disclosures". Hence, the same have been excluded from the above
table.

40.2 Fair value measurements

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

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

• Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly
(i.e. as prices) or indirectly (i.e. derived from prices).

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

The following table presents fair value hierarchy of assets and liabilities measured at fair value on a recurring basis:

Notes:

1 There have been no transfers between Level 1 and Level 2 during the year.

2 No financial liabilities subsequently measured at fair value.

41 Financial risk management objectives and policies

The Company is exposed to various financial risks. These risks are categorised into market risk, credit risk and liquidity
risk. The Company''s risk management is coordinated by the Board of Directors and focuses on securing long term and
short term cash flows. The Company does not engage in trading of financial assets for speculative purposes.

(A) 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.

(i) 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 exposure to the risk of changes in market interest rates relates
primarily to the Company''s long-term debt obligations with floating interest rates. The Company manages its interest
rate risk by having a variable rate loans and borrowings.

Interest rate sensitivity

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

(ii) Foreign currency risk

The Company is not exposed to significant foreign currency risk as it does not have any material transactions,
monetary assets, or monetary liabilities denominated in foreign currencies as at 31 March 2026. Accordingly,
management believes that fluctuations in foreign exchange rates do not have a material impact on the Company''s
financial position or performance.

B) Commodity price risk

The Company is exposed to commodity price risk as operates in production and selling of ethanol to customers. The
ethanol prices are announced by the Central Government which are based on Fair and Remunerative Price (FRP) of
sugarcane, cost of production of sugar and realisation of by-products.

(C) Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract,
thereby leading to a financial loss. The Company conduct thorough credit assessments before granting credit terms
and limits to customers, who are then monitored closely for adherence. The Company''s ethanol sales are primarily
made to Public Oil Marketing Companies ("OMCs") thereby the credit default risk is significantly mitigated. Further, the
Company keeps a close watch on the realisation of the outstanding amounts which are collected within 12 months and
has not experienced any significant default.

Financial instruments that are subject to concentrations of credit risk principally consist of trade receivables, loans,
cash and cash equivalents, bank deposits and other financial assets. None of the financial instruments of the Company
result in material concentration of credit risk, except for trade receivables.

Trade receivables including retention money

Customer credit risk is managed by the Company''s established policy, procedures and control relating to customer
credit risk management. Trade receivables are non-interest bearing and are generally on credit terms of 21 to 27 days.
The Company follows ''simplified approach'' for recognition of loss allowance on Trade receivables. An impairment
analysis is performed at each reporting date on an individual basis for major customers. The calculation is based on
historical data of expected credit loss, actual credit loss and party-wise review of credit risk. The Company does not
hold collateral as security. Given that the trade receivables are from public sector OMC companies, no credit risk is
observed and the payments are usually settled within one year and therefore the loss from time value of money is also
not significant. Accordingly, no loss allowance is computed for the year ended 31 March 2026.

The customers retain 3% of the invoice amount which is settled at the end of the season which is typically within a year.
Retention money that is not settled within a year is tested for impairment.

The ageing analysis of trade receivables (net of loss allowance) as of the reporting date is as follows:

44 Details of Benami Property held

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

45 Relationship with Struck off Companies under section 248 of the Companies Act, 2013 or section 560 of
Companies Act, 1956

The Company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013
or section 560 of Companies Act, 1956.

46 Registration of charges or satisfaction with Registrar of Companies

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

47 Utilisation of Borrowed funds and share premium:

(i) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), :

(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.

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

(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.

48 Compliance with approved scheme(s) of arrangements

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

49 Compliance with number of layers of companies

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

50 Crypto Currency

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

51 Wilful Defaulter

The Company is not declared as wilful defaulter by any Bank or Financial Institution or Other lenders.

53 Capital management

The Company''s objective in managing capital is to safeguard its ability to continue as a going concern while providing
adequate returns to shareholders and maintaining an optimal capital structure. The Company seeks to maintain a
prudent balance between debt and equity in order to minimise the cost of capital, preserve financial flexibility, support
growth initiatives and capital expenditure plans, and sustain a strong credit profile. Capital, for the purpose of the
Company''s capital management framework, comprises equity share capital, other equity (including securities premium,
retained earnings and other reserves), and net debt. Net debt represents interest-bearing borrowings net of cash and
cash equivalents.

The Company''s capital structure consists of equity attributable to the equity shareholders and interest-bearing
borrowings, which include both long-term and short-term debt. The Board of Directors periodically reviews the
Company''s capital structure, leverage position, funding requirements and dividend policy in light of business expansion
plans, operating performance, macroeconomic conditions and shareholder expectations. In order to maintain or adjust
the capital structure, the Company may adjust dividend payments, issue new shares, refinance or restructure
borrowings, or undertake other capital management initiatives as considered appropriate. No dividend was declared or
paid during the year ended 31 March 2026 (31 March 2025: Nil).

The Company monitors capital primarily on the basis of the gearing ratio. For this purpose, gearing ratio is defined as
total borrowings divided by total equity. The gearing ratio as at the reporting dates is as follows:

The movement in the gearing ratio during the year reflects changes in borrowings and equity attributable to capital
expenditure, working capital requirements, repayment of loans, accretion to retained earnings from profitability during
the year, and proceeds raised through the Initial Public Offering.

The Company is subject to financial covenants under its borrowing arrangements with banks and financial institutions.
These covenants include, inter alia, maintenance of specified leverage ratios, debt service coverage ratio, interest
coverage ratio and other financial metrics as agreed with lenders. Compliance with these covenants is monitored on a
periodic basis through internal reviews of financial performance and cash flow forecasts. As at 31 March 2026 and 31
March 2025, the Company has complied with all externally imposed capital requirements and financial covenants.
There were no breaches of covenants during the year.

No changes were made in the objectives, policies or processes for managing capital during the year ended 31 March
2026 as compared to year ended 31 March 2025.

54 Assets Pledged as Security

The carrying amounts of assets pledged as security for current and non-current borrowings are:

*as per trie Facility Agreement aatea 21 February 2023, tne company avanea a term loan Tacinty Trom union Bank ot
India and India Renewable Energy Development Agency Limited (collectively referred to as the "Original Lenders"),
against which 1,56,02,293 equity shares were pledged.

Subsequently, pursuant to a new Facility Agreement dated 23 February 2024 entered into with State Bank of India and
India Renewable Energy Development Agency Limited (collectively referred to as the "New Lenders"), the said term loan
facility was taken over by the New Lenders. Upon transition Trom the Original Lenders to the New Lenders, the
1,56,02,293 equity shares previously pledged in favour of the Original Lenders were temporarily released on 14 March
2024. Thereafter, 1,58,80,000 equity shares were pledged in favour of the New Lenders on 24 April 2024.

Pursuant to the Company''s Initial Public Offering (IPO), these pledged shares were released. Subsequently, 2,22,95,674
equity shares were pledged on 06 November 2025, 11 November 2025 and 19 November 2025 representing 26% of the
total promoter shareholding as on the date of pledge.

(a) Sanctioned limit with SBI, IREDA, Yes bank, Kotak Mahindra bank, Canara bank, Federal bank, IOB has been secured
by hypothecation of first charge on stock-in-trade, present and future, consisting of raw materials, goods in process of
manufacturing finished goods, and other merchandise whatsoever being movable properties and all the debts, that is,
all the book debts, outstanding''s, monies receivables, claims, bills, invoice documents, contracts, guarantees, and rights
which are now due and owing or which may at any time hereafter during the continuance of this security becomes due
and owing to the Company. The loan is also supported by first charge by way of an equitable mortgage of industrial land
(by deposit of title deeds) and subservient charge on entire movable fixed assets and current assets (present and
future) of the borrower.

55 Undisclosed income

The Company does not have any undisclosed income which is not recorded in the books of account that has been
surrendered or disclosed as income during the year ended 31 March 2026 and corresponding previous year in the tax
assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income
Tax Act, 1961).

57 Contingent liabilities and contingent assets

The Company does not have any contingent liabilities and contingent assets as at the end of 31 March 2026 (31 March
2025:Nil).

58 The Code on Social Security 2020

On November 21,2025, the Government of India notified the Tour Labour Codes - the Code on Wages, 2019, the Industri¬
al Relations Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health and Working Conditions
Code, 2020 - consolidating 29 existing labour laws.

The Ministry of Labour & Employment published draft Central Rules and FAQs to enable assessment of the financial
impact due to changes in regulations. The Company has reviewed the implications of these new codes and concluded
that the existing compensation structure and benefit practices were already aligned with the requirements of the code
on Social Security 2020 prior to its enforcement. Accordingly, no additional impact arising from implementation of the
code has been determined. The Company continues to monitor the finalisation of Central / State Rules and
clarifications from the Government on other aspects of the Labour Code and would provide appropriate accounting
effect based on such developments as needed.

59 The Company is in the process of carrying out componentisation of certain items of Property, Plant and Equipment
relating to 3 distillery units which were converted from mono feed to dual feed in the month of November 2025, January
2026 and February 2026 respectively for each of the distillery in accordance with the requirements of the Indian
Accounting Standard 16. Considering the size, complexity, and technical nature of the project, the exercise involves
detailed technical evaluation and identification of significant components. The management expects to complete the
componentisation exercise by June 30, 2026.

60 Initial Public Offerings (IPO)

During the year ended 31 March 2026, the Company completed an Initial Public Offering (IPO) of 1,69,20,967 equity
shares having a face value of ?10 per share at an issue price of ?495 per share. The IPO comprised:

1,51,20,967 equity shares with a face value of ?10 each as an issue of fresh equity shares; and 18,00,000 equity shares
as an Offer for Sale (OFS).

The Company''s equity shares were listed on the National Stock Exchange of India Limited (NSE) and BSE Limited (BSE)
on 03 October 2025.

The total proceeds from the fresh issue amounted to ? 75,000 Lakhs. The utilization of the net IPO proceeds is
summarized below: