(xii) Provisions, contingent liabilities and contingent assets

Provisions are recognised when the Company has a present obligation (Legal or constructive) as
a result of a past event, it is probable that an outflow of resources embodying economic benefits
will be required to settle the obligation and a reliable estimate can be made of the amount of the
obligation. 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.

A disclosure for a contingent liability is made when there is a possible obligation or a present
obligation that may, but probably will not, require an outflow of resources. The Company also
discloses present obligations for which a reliable estimate cannot be made. When there is
a possible obligation or a present obligation in respect of which the likelihood of outflow of
resources is remote, no provision or disclosure is made.

(xiii) Employee benefits:

i) Short term employee benefits:

Short term employee benefits are recognised as expenditure at the undiscounted value in
the statement of profit and loss of the year in which the related service is rendered.

ii) Post-employment benefits:

Defined contribution plans: Company's contribution to the superannuation scheme,
provident fund scheme and pension under employees' pension scheme etc. are recognised
during the year in which the related service is rendered. Monthly contributions are made
to a trust administered by the trustees. The interest rate payable by the trust to the
beneficiaries is notified by the Government. The Company has an obligation to make good
the shortfall, if any, between the return on the investments of the trust and the notified
interest rate.

Defined benefit plans - gratuity: Gratuity liability is covered under the gratuity-cum-
insurance policy of Life Insurance Corporation of India (LIC) administered by trust. The
present value of the obligation is determined based on an actuarial valuation, using the
projected unit credit method. Actuarial gains and losses in respect of post-employment
benefits are charged to the Other Comprehensive Income (OCI). The amount funded by the
Company administered by the trust under the aforesaid Policy, is reduced from the gross
obligation under the defined benefit plan, to recognise the obligation on a net basis.

iii) The Company has a policy on compensated absences which are both accumulating and
non-accumulating in nature. The expected cost of accumulating compensated absences is
determined by actuarial valuation performed by an independent actuary at each Balance
Sheet date using projected unit credit method on the additional amount expected to be paid
/ availed as a result of the unused entitlement that has accumulated at the Balance Sheet
date. Expense on non-accumulating compensated absences is recognized in the period in
which the absences occur.

iv) Compensation to employees under Voluntary Retirement Scheme (VRS) is charged to
statement of profit and loss in the year of accrual.

(xiv) Taxation

i) Current tax

Provision for current tax is made with reference to taxable income computed for the
accounting period for which the financial statements are prepared by applying the tax rates
and laws that are enacted or substantively enacted at the Balance sheet date. The tax is
recognised in statement of profit and loss, except to the extent that it related to items
recognised in the other comprehensive income (OCI) or in other equity. In this case, the tax
is also recognised in other comprehensive income and in other equity. Current tax assets
and current tax liabilities are off set only if there is a legally enforceable right to set off the
recognised amounts, and it is intended to realise the asset and settle the liability on a net
basis or simultaneously

ii) Deferred tax is recognised on temporary differences between the carrying amounts of
assets and liabilities in the financial statements and the corresponding tax bases used in
the computation of taxable profit. Deferred tax liabilities and assets are measured at the
tax rates that are expected to apply in the period in which the liability is settled or the asset
realised, based on tax rates (and tax laws) that have been enacted or substantively enacted
by the end of the reporting period. The carrying amount of deferred tax liabilities and
assets are reviewed at the end of each reporting period. Deferred tax asset on unabsorbed
depreciation and carried forward losses is recognised only to the extent of deferred tax
liability.

iii) Minimum Alternate Tax (MAT) paid in a year is charged to the Statement of Profit and Loss
as current tax for the year. The deferred tax asset is recognised for MAT credit available
only to the extent that it is probable that the Company will pay normal income tax and
thereby utilising MAT credit during the specified period, i.e., the period for which MAT credit
is allowed to be carried forward and utilised. In the year in which the Company recognises
MAT credit as an asset, it is created by way of credit to the Statement of Profit and Loss and
shown as part of deferred tax asset. The Company reviews the Deferred tax assets on MAT
credit entitlement at each reporting date and writes down the asset to the extent that it is
no longer probable that it will pay normal tax during the specified period.

(xv) Cash and cash equivalents

Cash and cash equivalents includes cash in hand and deposits with any qualifying financial
institution repayable on demand or maturing within three months from the date of acquisition
and which are subject to an insignificant risk of change in value.

(xvi) Foreign Currencies

i) Foreign currency transactions are recorded at the rates of exchange prevailing on the date
of transaction. Monetary foreign currency assets and liabilities outstanding at the close
of the financial year are revalued at the exchange rates prevailing on the balance sheet
date. Exchange differences arising on account of fluctuation in the rate of exchange is
recognised in the statement of profit and loss.

ii) Non-monetary items that are measured in terms of historical cost in a foreign currency are
translated using the exchange rates at the dates of the initial transactions. Non-monetary
items measured at fair value in a foreign currency are translated using the exchange rates
at the date when the fair value is determined. The gain or loss arising on translation of
non-monetary items measured at fair value is treated in line with the recognition of the
gain or loss on the change in fair value of the item (i.e., translation differences on items
whose fair value gain or loss is recognised in OCI or statement of profit and loss are also
recognised in OCI or statement of profit and loss, respectively).

(xvii) Revenue from contracts with customers

Revenue is recognised when control of the goods is transferred to the customer at an amount
that reflects the consideration to which the Company expects to be entitled in exchange for such
goods or services, in accordance with Ind AS 115 - Revenue from Contracts with Customers.

Revenue primarily comprises sale of sugar, molasses, bagasse, power, ethanol and other by¬
products generated during the manufacturing process.

Revenue is recognised upon satisfaction of performance obligations, which generally occurs
upon dispatch/delivery of goods to customers in accordance with the terms of sale, when
control, significant risks and rewards of ownership and effective control over the goods are
transferred to the customer. Revenue is measured net of returns, trade discounts, rebates,
Goods and Services Tax ("GST") and other similar taxes collected on behalf of the Government.

Where contracts contain a single performance obligation, revenue is recognised at the point
in time when control of goods passes to the customer. In case of sale arrangements involving
multiple performance obligations, the transaction price is allocated to each performance
obligation based on the relative standalone selling prices.

Export incentives, if any, are recognised as revenue when there is reasonable assurance that the
entitlement will be received and the related conditions are complied with.

Sale of power

Revenue from sale of power generated through cogeneration facilities is recognised on supply
of units of electricity to the grid in accordance with the terms of the underlying agreements and
as per applicable tariff regulation.

Interest income

Interest income is recognised using the effective interest rate ("EIR") method on a time
proportion basis.

Other operating income

Income from sale of scrap and miscellaneous operational recoveries is recognised when
the related goods/services are transferred/rendered and there is no significant uncertainty
regarding collection of consideration.

Dividend income

Dividend income is recognised when the right to receive payment is established.

Insurance claims

Insurance claims are accounted for on the basis of claims admitted / expected to be admitted
and to the extent that there is no uncertainty in receiving the claims.

(xviii) Government grants

The Government grants such as capital subsidies under Sugar Promotion Policy, 2004, interest
free or concessional interest rate loans and subsidies related to sugar cane purchased are
recognised where there is reasonable assurance that the grant will be received and all attached
conditions will be complied with.

When the grant relates to an expense item, it is recognised as income on a systematic basis over
the periods that the related costs, for which it is intended to compensate, are expensed.

When the grant relates to an asset, it is recognised as income in equal amounts over the
expected useful life of the related asset.

When the company receives grants of non-monetary assets, the asset and the grant are recorded
at fair value amounts and released to statement of profit and loss over the expected useful life in
a pattern of consumption of the benefit of the underlying asset i.e. by equal annual instalments.
When loans or similar assistance are provided by governments or related institutions, with an
interest rate below the current applicable market rate, the effect of this favourable interest is
regarded as a government grant. The loan or assistance is initially recognised and measured at
fair value and the government grant is measured as the difference between the initial carrying
value of the loan and the proceeds received. The loan is subsequently measured as per the
accounting policy applicable to the financial liabilities.

(xix) Financial Instruments

i) Financial assets
A Initial recognition

The Company classifies financial instruments, or their component parts, on initial
recognition as a financial asset, a financial liability or an equity instrument in accordance
with the substance of the contractual arrangement. Financial instruments are recognised
when the Company becomes a party to the contractual provisions of the instrument.
Financial instruments are recognised initially at fair value plus transactions costs that
are directly attributable to the acquisition or issue of the financial instrument, except
for financial assets at fair value through statement of profit and loss, which are initially
measured at fair value, excluding transaction costs (which is recognised in statement of
profit and loss).

B Subsequent measurement

a) Financial assets carried at amortised cost (AC)

A financial asset is subsequently measured at amortised cost if it is held within a business
model whose objective is to hold the asset in order to collect contractual cash flows and
the contractual terms of the financial asset give rise on specified dates to cash flows that
are solely payments of principal and interest on the principal amount outstanding.

b) Financial assets at fair value through other comprehensive income (FVTOCI)

A financial asset is subsequently measured at fair value through other comprehensive
income if it is held within a business model whose objective is achieved by both collecting
contractual cash flows and selling financial assets and the contractual terms of the financial
asset give rise on specified dates to cash flows that are solely payments of principal and
interest on the principal amount outstanding.

c) Financial assets at fair value through statement of profit and loss (FVTPL)

Equity instruments

All equity investments in scope of Ind-AS 109 are measured at fair value either as at FVTOCI
or FVTPL. The Company makes such election on instrument-by-instrument basis.

For equity instruments measured as at FVTOCI, all fair value changes on the instrument,
excluding dividends, are recognized in the OCI. Equity instruments included within the
FVTPL category are measured at fair value with all changes recognized in the statement of
profit and loss (P&L).

Investment in subsidiaries

Investment in subsidiaries are carried at cost as per Ind AS 27.

Treasury shares

The Company has created a Securities Trust that holds the equity shares of the Company,
which were allotted to the Trust in 2010 pursuant to the Scheme of amalgamation of its
erstwhile subsidiary Bajaj Hindusthan Sugar and Industries Ltd. The Company uses Trust
as a separate vehicle under the said scheme and treats as its extension and shares held
by Trust are treated as treasury shares. The own equity shares that reacquired (treasury
shares) are recognised at cost and deducted from equity. No gain or loss is recognised in
statement of profit and loss on the purchase, sale, issue or cancellation of the Company's
own equity shares. Corresponding amount of security premium is reduced from other
equity.

d) Impairment of financial assets

The Company applies expected credit loss (ECL) model for measurement and recognition
of impairment loss on the following financial assets and credit risk exposure:

1. Financial assets that are debt instruments, and are measured at amortised cost e.g.,
loans, debt securities, deposits, trade receivables and bank balance

2. Financial assets that are debt instruments and are measured as at FVTOCI

3. Lease receivables

4. Trade receivables or any contractual right to receive cash or another financial asset.

5. Loan commitments which are not measured as at FVTPL

6. The Company follows 'simplified approach' for recognition of impairment loss
allowance on trade receivables or contract revenue receivables; and all lease
receivables.

The application of simplified approach does not require the Company to track changes in
credit risk rather; it recognises impairment loss allowance based on 12 months ECLs at
each reporting date, right from its initial recognition.

For recognition of impairment loss on other financial assets and risk exposure, the
Company determines that whether there has been a significant increase in the credit risk
since initial recognition. If credit risk has not increased significantly, 12-month ECL is used
to provide for impairment loss. However, if credit risk has increased significantly, lifetime
ECL is used. If, in a subsequent period, credit quality of the instrument improves such that
there is no longer a significant increase in credit risk since initial recognition, then the
entity reverts to recognising impairment loss allowance based on 12-month ECL.

Lifetime ECL are the expected credit losses resulting from all possible default events
over the expected life of a financial instrument. The 12-month ECL is a portion of the
lifetime ECL which results from default events that are possible within 12 months after the
reporting date.

ii) Financial liabilities

A Initial recognition and measurement:

All financial liabilities are recognized initially at fair value and in case of loans and
borrowings and payables, net of directly attributable cost. Fees of recurring nature are
directly recognised in statement of profit and loss as finance cost.

B Subsequent measurement:

Financial liabilities are subsequently carried at amortized cost using the effective interest
method. For trade and other payables maturing within one year from the balance sheet
date, the carrying amounts approximate fair value due to the short maturity of these
instruments.

a) Loans and borrowings

After initial recognition, interest bearing loans and borrowings are subsequently measured
at amortized cost using the effective interest rate (EIR) method. Gains and losses are
recognized in statement of profit and loss when liabilities are derecognized. Amortized
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 amortization is included as finance
cost in the statement of profit and loss.

b) Compound Financial Instruments

At the issue date the fair value of the liability component of a compound instrument is
estimated using the market interest rate for a similar non-convertible instrument. This
amount is recorded as a liability at amortised cost using the effective interest method
until extinguished upon conversion or at the instrument's redemption date. The equity
component is determined as the difference of the amount of the liability component from
the fair value of the instrument. This is recognised in equity, net of income tax effects, and
is not subsequently re-measured.

iii) De-recognition of financial instruments

The Company derecognizes a financial asset when the contractual rights to the cash flows
from the financial asset expire or it transfers the financial asset and the transfer qualifies
for de-recognition under Ind AS 109. A financial liability (or a part of a financial liability)
is derecognized from the Company's balance sheet when the obligation specified in the
contract is discharged or cancelled or expires.

iv) Offsetting

Financial assets and financial liabilities are offset and the net amount presented in the
balance sheet when and only when, the Company currently has a legally enforceable right
to set off the amounts and it intends either to settle them on a net basis or to realise the
asset and settle the liability simultaneously.

v) Fair value of financial instruments

In determining the fair value of its financial instruments, the Company uses a variety
of methods and assumptions that are based on market conditions and risks existing at
each reporting date. The methods used to determine fair value include discounted cash
flow analysis, EV / EBIDTA method and available quoted market prices. All methods of
assessing fair value result in general approximation of value, and such value may vary from
actual realization on future date.

vi) Derivative financial instruments

Derivative financial instruments are initially recognised at fair value on the date on which
a derivative contract is entered into and are subsequently re-measured at fair value.
Derivatives are carried as financial assets when the fair value is positive and as financial
liabilities when the fair value is negative. Any gains or losses arising from changes in
the fair value of derivatives are taken directly to statement of profit and loss, except for
the effective portion of cash flow hedges which is recognised in Other Comprehensive
Income and later to statement of profit or loss when the hedge item effects profit or loss
or treated as basis adjustment if a hedged forecast transaction subsequently results in the
recognition of a non-financial assets or non-financial liability.

(xx) Non-current assets held for sale/ distribution to owners and discontinued operations:
Non-current assets (or disposal groups) are classified as held for sale if their carrying amount
will be recovered principally through a sale transaction rather than through continuing use and
a sale is considered highly probable. They are measured at the lower of their carrying amount
and fair value less cost to sell, except for assets such as deferred tax assets, assets arising from
employee benefits, financial assets and contractual rights under insurance contracts, which are
specifically exempt from this requirement.

An impairment loss is recognised for any initial or subsequent write-down of the assets (or
disposal group) to fair value less cost to sell. A gain is recognised for any subsequent increases
in fair value less cost to sell of an asset (or disposal group), but not in excess of any cumulative
impairment loss previously recognised. A gain or loss not previously recognised by the date of
the sale of the non-current asset (or disposal group) is recognised at the date of de-recognition.
Non-current assets (including that are part of a disposal group) are not depreciated or
amortised while they are classified as held for sale. Interest and other expenses attributable
to the liabilities of a disposal group classified as held for sale continue to be recognised. Non¬
current assets classified as held for sale are presented separately from the other assets in
the balance sheet. The liabilities of a disposal group classified as held for sale are presented
separately from other liabilities in the balance sheet.

A discontinued operation is a component of the entity that has been disposed of or is classified
as held for sale and that represents a separate major line of business or geographical area
of operations, is part of a single co-ordinated plan to dispose of such a line of business or
area of operations, or is a subsidiary acquired exclusively with a view to resale. The results of
discontinued operations are presented separately in the statement of profit and loss.

(xxi) Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to
the chief operating decision maker. The chief operating decision maker monitors the operating
results of its business Segments separately for the purpose of making decision about the
resources allocation and performance assessment. Segment performance is evaluated based
on the profit or loss and is measured consistently with profit or loss in the standalone financial
statements. The operating segments have been identified on the basis of the nature of products/
services.

3 Use of accounting judgements, estimates and assumptions

In preparing these standalone financial statements, management has made judgments, estimates
and assumptions that affect the application of the Company's accounting policies and the reported
amounts of assets, liabilities, income and expenses, and the accompanying disclosures, and the
disclosure of contingent liabilities. Management believes that the estimates used in the preparation
of the standalone financial statements are prudent and reasonable. Actual results may differ from
these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions
to accounting estimates are recognised prospectively.

The Company uses the following critical accounting judgements, estimates and assumptions in
preparation of its standalone financial statements:
i) Depreciation and useful lives of property plant and equipment

Property, plant and equipment are depreciated over the estimated useful lives of the assets,
after taking into account their estimated residual value. Management reviews the estimated
useful lives and residual values of the assets annually in order to determine the amount of
depreciation to be recorded during any reporting period. The useful lives and residual values
are based on the Company's historical experience with similar assets and take into account
anticipated technological changes. The depreciation for future periods is adjusted if there are
significant changes from previous estimates.

ii) Retirement benefit obligations

The cost of the leave encashment, defined benefit plan and other post-employment benefits
and the present value of such obligation are determined using actuarial valuations. An actuarial
valuation involves making various assumptions that may differ from actual developments in the
future. These include the determination of the discount rate, future salary increases, mortality
rates and attrition rate. 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 periodically reviewed at each reporting date.

iii) Recoverability of trade receivable:

Judgements are required in assessing the recoverability of overdue trade receivables and
determining whether a provision against those receivables is required. Factors considered
include the credit rating of the counterparty, the amount and timing of anticipated future
payments and any possible actions that can be taken to mitigate the risk of non-payment.

iv) Provisions:

Provisions and liabilities are recognized in the period when it becomes probable that there will
be a future outflow of funds resulting from past operations or events and the amount of cash
outflow can be reliably estimated. The timing of recognition and quantification of the liability
require the application of judgement to existing facts and circumstances, which can be subject
to change. Since the cash outflows can take place many years in the future, the carrying amounts
of provisions and liabilities are reviewed regularly and adjusted to take account of changing
facts and circumstances.

v) Impairment of non-financial assets:

The Company assesses at each reporting date whether there is an indication that an asset may
be impaired. If any indication exists, or when annual impairment testing for an asset is required,
the Company estimates the asset's recoverable amount. An asset's recoverable amount is
the higher of an asset's or CGU's fair value less costs of disposal and its value in use. It is
determined for an individual asset, unless the asset does not generate cash inflows that are
largely independent of those from other assets or groups of assets. Where the carrying amount
of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is
written down to its recoverable amount.

In assessing value in use, the estimated future cash flows are discounted to their present value
using pre-tax discount rate that reflects current market assessments of the time value of money
and the risks specific to the asset. In determining fair value less costs of disposal, recent market
transaction are taken into account, if no such transactions can be identified, an appropriate
valuation model is used.

vi) Impairment of financial assets:

The impairment provisions for financial assets are based on assumptions about risk of default
and expected cash loss rates. The Company uses judgement in making these assumptions and
selecting the inputs to the impairment calculation, based on history, existing market conditions
as well as forward looking estimates at the end of each reporting period.

vii) Fair value measurement of financial instruments:

The fair values of financial instruments that are not traded in an active market and cannot be
measured based on quoted prices in active markets are determined using valuation techniques
including the EV/EBITDA method and Discounted Cash Flow (DCF) model. The Company uses its
judgment to select a variety of methods and make assumptions that are mainly based on market
conditions at regular intervals. The inputs to these models are taken from observable markets
where possible, but where this is not feasible, a degree of judgment is required in establishing
fair values. Judgments include considerations of inputs such as liquidity risk, credit risk and
volatility. Changes in assumptions about these factors could affect the reported fair value of
financial instruments.

viii) Deferred tax

Deferred tax assets are recognised for unused tax losses (carry forward of earlier years' losses)
and unused tax credit to the extent that taxable profit would probably be available against which
the losses and tax credit 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.

ix) Classification of 0.01% Compulsorily Convertible Preference Shares ("CCPS”)

The Company has issued 0.01% Compulsorily Convertible Preference Shares ("CCPS”) pursuant
to the approved Resolution Plan entered into with the lenders of the Company. The CCPS
are rupee denominated, cumulative, participating, unlisted, mandatorily and compulsorily
convertible preference shares containing certain features including cumulative coupon/
dividend, conversion into equity shares, put/call option rights and buyback related clauses.

The management has evaluated the classification of the aforesaid instrument in accordance with
the principles prescribed under Indian Accounting Standards Ind AS 32 - Financial Instruments:
Presentation, including paragraphs 15, 16 and 22 thereof, which require classification of a
financial instrument based on the substance of the contractual arrangement and not merely its
legal form.

Based on the overall terms of the approved Resolution Plan and the contractual rights and
obligations attached to the instrument, the management has concluded that the CCPS are, in
substance, equity instruments. While the CCPS contain a cumulative coupon/dividend feature of
0.01% per annum, the management has assessed that the aforesaid dividend feature is merely
incidental to the legal form requirements applicable to preference shares and the financial
impact of such dividend obligation over the tenure of the instrument is negligible and not
material to the standalone financial statements. Accordingly, the Company has not separately
recognised any liability component in respect of the aforesaid dividend feature and the entire
instrument has been classified and presented as Equity in the standalone financial statements.
The management has further evaluated the put/call option and buyback related clauses
attached to the CCPS and noted that such rights are contingent in nature and exercisable
only subject to availability of surplus funds and compliance with applicable provisions of the
Companies Act, 2013. Accordingly, the management has concluded that the aforesaid clauses
do not create any substantive unavoidable contractual obligation requiring separate financial
liability classification under Ind AS 32.

The management has also considered the commercial substance of the conversion feature
attached to the CCPS. The conversion price cap of ' 5.12 per equity share is significantly lower
than the prevailing market price of the Company's equity shares as at the reporting date and
accordingly the conversion feature provides substantial equity participation upside to the holders
of CCPS. In the management's assessment, the put option rights attached to the CCPS are
protective and contingent in nature, whereas the overall commercial substance and economic
intent of the arrangement is aligned towards long-term equity participation through conversion
into equity shares of the Company.

x) Insurance claims

Recognition of insurance claim receivables involves significant judgement regarding admissibility
and expected realisation of claims. The Company assesses the amount recoverable based
on policy terms, surveyor assessments, status of claim discussions with insurers and past
experience of successful settlement of similar claims. Actual settlement may differ from the
amount recognised.

xi) Lease

The Company applies judgement in determining whether an arrangement contains a lease and
in assessing lease classification. Significant assumptions include determination of lease term,
likelihood of exercising renewal/termination options and assessment of transfer of risks and
rewards in lessor arrangements. Based on the nature and tenure of underlying arrangements,
management has concluded that such leases qualify for the practical expedients available
under Ind AS 116 and accordingly lease payments are recognised as an expense over the lease
term.

xii) Material uncertainty about going concern:

In preparing financial statements, management has made an assessment of Company's ability
to continue as a going concern. Standalone financial statements are prepared on a going concern
basis. The Management is aware, in making its assessment, of material uncertainties related to
events or conditions that may cast significant doubt upon the Company's ability to continue as a
going concern. Further details on going concern are disclosed in note no.51.

4 Recent accounting pronouncements

In May 2025, MCA notified amendments to Ind AS 21 - The Effects of Changes in Foreign Exchange
Rates, applicable with effect from April 1, 2025. The Company has evaluated the amendment and
concluded that the same does not have any impact on its standalone financial statements.

In August 2025, MCA notified amendments to Ind AS 7 - Statement of Cash Flows and Ind AS 107
- Financial Instruments: Disclosures, applicable with effect from April 1, 2025. The amendments
require disclosure of supplier finance arrangements, including their nature, carrying amount of
related liabilities and range of payment due dates. Further, Ind AS 107 includes supplier finance
arrangements as a factor that may give rise to concentration of liquidity risk. The Company has
evaluated the amendments and determined that they do not have any material impact on its
standalone financial statements.

MCA also notified amendments to Ind AS 12 - International Tax Reform - Pillar Two Model Rules,
effective immediately. The amendments provide a temporary mandatory exception from accounting
for deferred taxes arising from implementation of the Pillar Two model rules and require specified
related disclosures. The Company does not have any impact of the said amendment on its standalone
financial statements.

Note:

6.1 Refer Note 45 for details of the fair valuation methodology and related disclosures.

6.2 During the year, Lalitpur Power Generation Company Limited ("LPGCL"), a group company, announced
buyback of its equity shares through the Letter of Offer / Tender Offer route at a price of ' 938.75
per share. Pursuant thereto, the Company tendered 67,19,573 equity shares held as investment and
received consideration aggregating to ' 630.80 crores.

Further, during the year, the Company entered into a definitive and irrevocable share purchase
agreement for sale of its investment comprising 275,000 equity shares of LPGCL ("Sale Shares") for
an aggregate consideration of ' 28.11 crore, which has been fully received by the Company. Pursuant
to the terms of the agreement, beneficial ownership together with associated risks and rewards in
respect of the Sale Shares has been transferred to the buyer with effect from the execution date of the
agreement. Accordingly, the Company has recognised the sale/disposal of the aforesaid investment
during the year ended 3l March 2026.

(e) Details of shares allotted without payment being received in cash during five years immediately
preceding the Balance Sheet date are given below:

(i) Pursuant to the obligations on the Promoters of the Company under the Master Restructuring
Agreement executed with the lenders on December 30, 2014, the promoters / promoter group
entity given an unsecured loan of ' 200 crore to the Company during the period from November
13, 2014 to September 24, 2015. As per request of the Promoters, consortium of lenders granted
their approval for the conversion of loan into equity shares of the Company. Pursuant to the
approval of the shareholders of the Company in the extra ordinary general meeting held on July
15, 2021, the board of directors at its meeting held on July 20, 2021, has allotted, 14,38,00,000
equity shares at a price of ' 13.28 per share (including premium of ' 12.28 per share) to
promoters / promoter group entity aggregating to ' 190,96,64,000 on conversion of loan.

(ii) Pursuant to the approved resolution plan and the framework agreement entered into with the
lenders for restructuring of the outstanding Optionally Convertible Debentures (OCDs) and
related financial obligations, including Yield to Maturity (YTM) and Right of Recompense (RoR),
the Company increased its authorised share capital from ' 500 crore comprising 500 crore equity
shares of Re. 1 each, to ' 13,000 crore comprising (i) ' 3,000 crore divided into 3,000 crore equity
shares of Re. 1 each, and (ii) ' 10,000 crore divided into 10,000 crore Compulsorily Convertible
Preference Shares (CCPS) of Re. 1 each, in accordance with the applicable provisions of the
Companies Act, 2013.

During the year ended March 31, 2026, the subscribed and paid-up equity share capital of
the Company increased from ' 127,73,59,942 comprising 127,73,59,942 equity shares of Re.
1 each to ' 237,39,42,476 comprising 237,39,42,476 equity shares of Re. 1 each, pursuant to
the allotment of 109,65,82,534 equity shares of Re. 1 each to the lenders, at a premium of
' 4.12 per share, under the approved restructuring framework. Consequently, the shareholding
of the promoters/promoter group reduced from 24.95% to 13.43%. Further, the Company issued
28,10,88,20,184 Compulsorily Convertible Preference Shares (CCPS) of face value Re. 1 each,
aggregating to ' 2,810.88 crore, to the lenders in accordance with the approved resolution plan.
Refer note 20.2 for detail.

The equity shares and CCPS allotted to the lenders under the approved restructuring framework
on preferential basis shall remain subject to lock-in requirements as prescribed under the
applicable provisions of the SEBI ICDR Regulations.

(g) The rights, preferences and restrictions attached to each class of shares including restrictions on
the distribution of dividends and the repayment of capital

A) Terms/ rights of equity shares:-

The Company has one class of equity shares having par value of Re.1/- per share. All equity
shares are ranking pari passu in all respects including dividend. In the event of liquidation of
the Company, the holders of the equity shares will be entitled to receive the realised value of the
assets of the Company, remaining after payment of all preferential dues. The distribution will be
in proportion to the number of equity shares held by the shareholders.

B) Terms/ rights of preference shares:-

The Company has one class of Compulsorily Convertible Preference Shares ("CCPS") of face
value Re. 1 each issued pursuant to the approved debt restructuring arrangement entered into
with the lenders of the Company. The CCPS are rupee denominated, cumulative, participating,

unlisted, mandatorily and compulsorily convertible preference shares and rank pari passu inter
se, including with respect to payment of dividend.

The CCPS carry a mandatory fixed cumulative coupon/dividend at the rate of 0.01% per annum.
The coupon/dividend is payable annually on the last day of each financial year. The holders
of CCPS are entitled to participate in surplus assets and profits of the Company along with
equity shareholders in accordance with the terms of issue. In the event of liquidation of the
Company, the holders of CCPS shall be entitled to receive, out of the realised assets of the
Company remaining after settlement of all preferential dues, payment in priority to the equity
shareholders and in proportion to the number of CCPS held by them. The holders of CCPS
shall not have any voting rights other than such voting rights as are specifically available to
preference shareholders under the Companies Act, 2013.

The CCPS are compulsorily convertible into equity shares of the Company upon occurrence of
specified conversion events and mandatorily on or before 31 March 2045 in accordance with
the terms of issue. The conversion ratio shall be determined based on the face value of CCPS
divided by the applicable conversion price, subject to a conversion price cap of ' 5.12 per equity
share. Under the terms of issue, the holders of CCPS have been granted a right to require
purchase of the CCPS after 31 March 2035, exercisable subject to availability of surplus / excess
cash flows and compliance with applicable provisions of the Companies Act, 2013 relating to
buyback of securities. The Company also has a discretionary right to purchase the CCPS on
mutually agreed terms and in accordance with applicable law.

(i) The Company held a beneficial interest in BHL Security Trust, which held 3,11,00,000 equity shares
of the Company of face value ' 1 each, allotted pursuant to the amalgamation of its erstwhile
subsidiary, Bajaj Hindusthan Sugar and Industries Limited, in 2010. In accordance with Ind AS 32,
Financial Instruments: Presentation, these shares were treated as treasury shares and presented as
a deduction from equity. The excess of the carrying amount of such shares over their face value had
been adjusted against Securities Premium.

During the year ended March 31, 2026, the aforesaid 3,11,00,000 treasury shares held through BHL
Security Trust, identified as non-core assets under the approved restructuring framework by the
consortium of lenders, were sold through SBICAP Securities Limited, the transaction execution
agent appointed by the lenders. The shares were sold at an average price of ' 21.97 per share,
resulting in total realisation of ' 68.31 crore. Consequent thereto, the face value amounting to ' 3.11

crore has been recognised under Equity Share Capital and the balance amount of ' 64.73 crore, net
of brokerage and related transaction expenses, has been credited to Securities Premium. Amount
receivable from BHL Security Trust of ' 67.84 crore has been shown as other current financial assets.
(refer note 14)

Additionally the Company had formed an ESOP trust under the ESOP scheme. The Company had
given an advance of ' 8.69 crore to the ESOP Trust, which holds 17,80,000 equity shares. Face value of
these shares are treated as treasury shares as per Ind AS 32 - "Financial Instruments - Presentation”
and shown as reduction from equity. Excess of carrying value of these shares over the face value is
reduced from securities premium.

(j) Shares reserved for issue upon conversion of outstanding convertible securities

As at 31 March 2026, the Company has outstanding 32,15,30,423 Optionally Convertible Debentures
("OCDs'') of face value of ' 100 each and 28,10,88,20,184 CCPS of face value of ' 1 each outstanding
issued pursuant to the approved debt restructuring / resolution framework entered into with the
lenders of the Company.

As at 31 March 2026, equity shares aggregating up to 7,66,83,94,342 equity shares are reserved for
issuance upon conversion of the aforesaid outstanding OCDs and CCPS. The actual number of equity
shares to be allotted upon conversion shall be determined in accordance with the applicable terms
of conversion prevailing on the date of actual conversion.

For the purpose of determining the number of equity shares reserved for issue on conversion of
the outstanding OCDs, the Company has considered a conversion price of ' 14.76 per equity share,
being the price for issue of equity shares under the approved restructuring framework in accordance
with the applicable pricing guidelines under the RBI circular dated 8 June 2015 on Strategic Debt
Restructuring Scheme read with Regulation 70(5) of the Securities and Exchange Board of India
(Issue of Capital and Disclosure Requirements) Regulations, 2015.

For the purpose of determining the number of equity shares reserved for issue on conversion of the
outstanding CCPS, the company considered a conversion price of ' 5.12 per equity share, being the
conversion price at which equity shares were issued during the current year pursuant to conversion
of accrued YTM and allotment of CCPS/equity shares to the lenders under the approved Resolution
Plan.

(k) terms of any securities convertible into equity shares issued along with the earliest date of
conversion in descending order starting from the farthest such date

The Company has outstanding 0.01% Compulsorily Convertible Preference Shares ("CCPS”) and
0.20% Optionally Convertible Debentures ("OCDs”) issued pursuant to the approved debt restructuring
/ Resolution Plan entered into with the lenders of the Company. Refer note 18(g) for terms of CCPS
and note 20.2 for terms of OCDs.

The earliest date of conversion for the aforesaid securities is as under:

(i) CCPS - convertible upon expiry of lock-in period of one year from the date of allotment and
mandatorily on or before 31 March 2045

(ii) OCDs - convertible at the option of lenders upon occurrence of events of default

20.2 The Company had issued 34,83,24,626 unlisted, unrated, redeemable optionally convertible
debentures ("OCDs") of ' 100 each, aggregating to ' 3,483.25 crore, on December 18, 2017, to the
lenders under the Scheme for Sustainable Structuring of Stressed Assets (S4A). Under the original
terms, the OCDs were redeemable in 13 equal annual instalments commencing from March 31, 2025,
and carried a structured coupon along with a redemption premium linked to the weighted average
cost to ensure no net present value loss to the lenders.

The Company was unable to service the first instalment of the OCDs and the related coupon
obligations due on March 31, 2025. Accordingly, the Company submitted a resolution plan to the
consortium of lenders under the Reserve Bank of India Prudential Framework for Resolution
of Stressed Assets dated June 7, 2019. Pursuant thereto, the lenders executed an Inter-Creditor
Agreement ("ICA") on April 28, 2025, and the resolution plan was subsequently approved by all the
lenders. The restructuring agreement, namely the Framework Agreement, with the lenders was
executed on March 26, 2026 and, in respect of Bank of India, approval to the Resolution Plan was
accorded vide sanction letter dated March 30, 2026 and the Deed of Accession to the Framework
Agreement was executed on April 1, 2026. Accordingly, upon completion of the stipulated conditions
precedent, the resolution plan became effective from April 1, 2025.

As part of the condition's precedent to the restructuring, promoters/promoter group entities infused
' 1,000 crores into the Company. Of this, ' 630.80 crore was brought in through buyback of 67,19,573
equity shares of Lalitpur Power Generation Company Limited ("LPGCL") held by the Company, and
the balance ' 369.21 crore was infused by LPGCL in the form of an inter coporate deposit, proposed
to be converted into equity or an equity-like instrument, subject to applicable approvals and
compliances. These funds were utilised towards repayment of the first instalment of OCDs, overdue
coupon obligations and part repayment of the Yield to Maturity ("YTM") obligation.

The principal terms of the approved restructuring are set out below:

a. After repayment of the first instalment of ' 267.94 crore, the outstanding OCD liability of
' 3,215.31 crore continues as the same instrument, subject to revised terms and conditions.

b. The coupon rate on the OCDs stands revised to 0.20% per annum from the earlier rate of 2.50%
per annum.

c. No further YTM shall accrue on the outstanding restructured OCDs.

d. The revised repayment schedule provides for repayment of the OCDs in 10 annual instalments
commencing from March 31, 2031, and ending on March 31, 2040, after a moratorium period of
five years.

e. Under the applicable restructuring documents, upon the occurrence of specified events of
default, the lenders have the right to convert the outstanding OCDs, in whole or in part, into
equity shares of the Company.

f. The accrued YTM obligation amounting to ' 3,584.95 crore as of March 31, 2025, has been
recognised as prior period error (refer note 54). Out of the aforesaid amount, ' 645.09 crore,
including related tax deduction at source obligations, was paid during the year and the balance
was settled in the following manner:

i) ' 570.01 crore was converted into equity share capital through issuance of 1,11,33,06,099
equity shares of face value ' 1 each at an issue price of ' 5.12 per share, including securities
premium of ' 4.12 per share. The aforesaid allotment includes 1,67,23,565 equity shares
allotted to Bank of India on April 1, 2026.

ii) The balance YTM liability of ' 2,369.85 crore was settled through issuance of 23,69,85,06,606
compulsorily convertible preference shares ("CCPS") of face value ' 1 each carrying a
coupon dividend of 0.01% per annum. The aforesaid allotment includes 35,59,90,361 CCPS
allotted to Bank of India on April 1, 2026.

g. The accrued Right of Recompense ("RoR") payable to the lenders amounting to ' 485.60 crore
as of March 31, 2025, in accordance with the terms of the Master Restructuring Agreement
executed in December 2014 under the Joint Lenders' Forum restructuring framework, was
settled through conversion into 485,59,80,947 CCPS of face value ' 1 each. The aforesaid
allotment includes 8,96,77,008 CCPS allotted to Bank of India on April 1, 2026. The accrued RoR
has been recognised as a prior period error (refer note 54).

h. In respect of Bank of India (BOI), 1,67,23,565 equity shares aggregating to ' 8.57 crore and
44,56,67,369 CCPS of face value Re. 1 each aggregating to ' 44.57 crore were allotted on April
1, 2026. As the underlying conversion of YTM and RoR under the approved Resolution Plan had
been accepted by BOI prior to March 31, 2026 vide sanction letter dated March 30, 2026, the
aggregate amount of ' 53.14 crore relating to the aforesaid allotment has been disclosed as
Share Application Money Pending Allotment as at March 31, 2026.

i. The approved resolution plan also stipulates, inter alia, the following key covenants and
conditions:

- The Company is required to monetise identified non-core assets aggregating to a
minimum of ' 150 crores within two years from the implementation date of the resolution
plan. The proceeds from such monetisation are to be utilised towards repayment of the
OCDs in inverse order of maturity. In case of any shortfall in the stipulated realisation from
monetisation of non-core assets, the promoters/promoter group entities are required to
infuse the shortfall amount within the prescribed timeline in accordance with the terms of
the approved resolution plan.

- The Company is required to create and maintain a dedicated sinking fund for servicing
coupon and redemption obligations relating to the OCDs. From financial year 2026-27
onwards, the Company is required to deposit amounts equivalent to the coupon obligations
into such sinking fund, which may be invested in Government securities, Treasury Bills and
other statutory liquidity ratio (SLR) securities approved by the lenders.

20.4 Details of securities

The Optionally Convertible Debentures ("OCDs") issued to the banks are secured on a first pari passu
basis by way of mortgage/hypothecation over the entire immovable and movable property, plant and
equipment of the Company, both present and future, and further secured by a first pari passu charge
by way of hypothecation over all current assets of the Company, both present and future.

The aforesaid borrowings are additionally secured by personal guarantee of the Chairman (Promoter),
corporate guarantees provided by promoter group company, Bajaj International Realty Private
Limited, and subsidiary company, Phenil Sugars Limited, pledge of the entire shareholding held
by the promoters in the Company, pledge of 21,82,870 equity shares of Lalitpur Power Generation
Company Limited ("LPGCL') held by the Company and pledge of 3,63,00,011 equity shares of Bajaj
Energy Private Limited held by a promoter group company. Further secured by first pari-passu
charge over the Property, plant and equipment of Phenil Sugars Limited ("PSL"), a subsidiary of the
Company. Additionally, equitable mortgage over the land owned by PSL shall be created in favour
of the lenders / debenture trustee in the event the envisaged monetisation of identified non-core
assets, including sale of land, building and plant & machinery owned by PSL, is not completed within
two years from the implementation date of the approved Resolution Plan.

All the aforesaid charges have been duly created and filed with the Registrar of Companies ("ROC").
There are no charges or satisfactions pending for registration with the ROC beyond the statutory
period.

Bajaj Energy Private Limited, a group company, has provided an irrevocable, unconditional and
continuing corporate guarantee in favour of the Debenture Trustee of an aggregate limit of ' 300
crore and annual limit of ' 150 crore per financial year up to Financial Year 2031-32, towards ensuring
compliance with the financial and capital expenditure covenants stipulated under the framework
agreements.

20.5 Loan from promoters

In accordance with the terms of the debt restructuring approved by the lenders, the Promoters
had infused an amount of ' 200 crore as unsecured loans in lieu of their stipulated contribution. In
accordance with Ind AS 32, this amount has been classified as a compound financial instrument and
bifurcated into ' 64.22 crore as debt and ' 135.78 crore as equity, based on a discounted cash flow
method using a discount rate of 12% per annum over a tenure of 10 years. This loan carries an option
to convert into equity shares or similar instruments of the Company.

Further, under the S4A Scheme, the Promoter Group transferred 11,99,87,344 equity shares to
lenders towards partial settlement of the unsustainable debt. The corresponding consideration of
' 11.99 crore has been recognised as an unsecured loan from the Promoters. In accordance with Ind
AS 32, this has been classified as a compound financial instrument and bifurcated into ' 10.76 crore

as debt and ' 1.24 crore as equity, based on a discounted cash flow method using a discount rate of
12% per annum over a tenure of 20 years.

The unwinding of discount on the aforementioned loans is recognised in the Statement of Profit and
Loss over the respective loan tenures.

During the financial year 2021-22, a portion of the above loan amounting to ' 190.97 crore was
converted into equity shares of the Company upon approval of the lenders. Refer Note 18 (e) for
further details.

During the current financial year, consequent to the restructuring of outstanding OCDs and
considering the binding repayment restrictions under the restructuring arrangement, whereby the
Company is not permitted to repay the promoter loan prior to settlement of the OCD obligations, the
management reassessed the expected repayment tenure of the outstanding promoter loan balance
of ' 9.03 crore. Accordingly, the liability component has been remeasured based on discounted cash
flow method considering an additional tenure of 10 years. Pursuant to such reassessment, the
liability component amounting to ' 2.25 crore has been recognised at present value and the resultant
adjustment of ' 6.79 crore has been adjusted against the equity component of the compound financial
instrument in accordance with Ind AS 32.

23.1 Pursuant to the restructuring arrangement entered into during the year, the Company has received
unsecured inter corporate deposit (ICD) aggregating to ' 369.21 crores from M/s Lalitpur Power
Generation Company Limited (LPGCL), a group entity, in the nature of promoter contribution. This
ICD is non-interest bearing, not repayable in cash and is contractually required to be settled only
through issuance of equity shares or equity like instruments, including CCPS, in accordance with
applicable SEBI regulations and valuation guidelines prevailing at the time of conversion.

Since the conversion price and number of securities to be issued will be determined at the time
of conversion based on applicable regulatory pricing guidelines, the arrangement does not satisfy
the "fixed-for-fixed" criterion prescribed under Ind AS 32 - Financial Instruments: Presentation.
Accordingly, the ICD has not been classified as equity and are presently classified as financial
liabilities measured at amortised cost in accordance with Ind AS 109. Management expects
conversion of the said ICD into equity/equity-like instruments within a short period of time.

This is a defined benefit plan and statutory liability of the Company. The Company has to pay the
Gratuity to the employees as per the provisions of Code on Social Security 2020 irrespective of the
availability of the funds with the Gratuity Fund.

The Gratuity liability is computed on actuarial valuation basis done at year end using the project
unit credit method is provided for in the books of account and is based on a detailed working done
by a certified actuary. Past service cost is recognized immediately to the extent that the benefits are
already vested.

The estimates of rate of escalation in salary considered in actuarial valuation, take into account
inflation, seniority, promotion and other relevant factors including supply and demand in the
employment market. The above information is certified by the actuary.

The Company manages Gratuity obligation through Trust. The Company arranges the fund based on
the actuarial valuation and requirement of the Trust.

The expected contributions for Defined Benefit Plan for the next financial year will be '40.84 crore
(PY '27.30 crore).

The average duration of the defined benefit plan obligation at the end of the period is 3.95 (PY 4.27).
These gratuity plan typically expose the company to actuarial risks such as: investment risk, interest
risk, longevity risk and salary risk.

Investment risk

The present value of the defined benefit plan liability is calculated using a discount rate which is
determined by reference to market yields at the end of the reporting period on government bonds.
For other defined benefit plans, the discount rate is determined with reference to market yield at
the end of reporting period on high quality corporate bonds when there is a deep market for such
bonds; if the return on plan asset is below this rate, it will create a plan deficit.

Interest risk

A decrease in the bond interest rate will increase the plan liability; however, this will be partially
offset by an increase in the return on the plan debt investments.

Longevity risk

The present value of the defined benefit plan 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 risk

The present value of the defined plan liability is calculated by reference to the future salaries of
plan participants. As such, an increase in the salary of the plan participants will increase the plan's
liability.

Provident fund

The Company's contribution are made to a Employee Provident Fund Trust. The interest rate payable
by the trust to the beneficiaries is notified by the Government. The Company has an obligation to
make good the shortfall, if any, between the return on the investments of the trust and the notified
interest rate. The actuary has provided a valuation based on the below provided assumptions and
there is no shortfall as at March 31, 2026.

The Company's activities expose it to credit risk, liquidity risk and market risk. This note explains the
sources of risks which the entity is exposed to and how it mitigates that risk.

A Credit risk

Credit risk arises from the possibility that counter party may not be able to settle their obligations
as agreed. The Company is exposed to credit risk from trade receivables loan given, advances
and deposits with banks. To manage this, the Company periodically assesses the financial
reliability of customers, taking into account loan given factors such as credit track record in the
market and past dealings with the Company for extension of credit to customers. The Company
monitors the payment track record of the customers. Outstanding customer receivables are
regularly monitored. Concentrations of credit risk are limited as a result of the Company's large
and diverse customer base. The Company has also taken advances and security deposits from
its customers / agents, which mitigate the credit risk to an extent. The ageing of trade receivable
is given in note 10.4

Following table summarizes the change in loss allowances measured using life time expected
credit loss model. No significant changes in the estimation techniques or assumption were
made during the period.

The Company considers factors such as track record, size of the institution, market reputation
and service standards to select the comparative banks with which loan/ term deposits are
maintained. Generally, term deposits are maintained with banks with which Company has also
availed borrowings.

B Liquidity risk

Liquidity risk is the risk that a Company may encounter difficulties in meeting its obligations
associated with financial liabilities that are settled by delivering cash or other financial assets.
The Company monitors rolling forecasts of its liquidity requirements to ensure it has sufficient
cash to meet operational needs. The table below provides undiscounted cash flows towards
financial liabilities into relevant maturity based on the remaining period at the balance sheet to
the contractual maturity date.

C Market risk

The Company is exposed to the risk of movements in interest rates, inventory price and foreign
currency exchange rates that affects its assets, liabilities and future transactions.

i) Interest rate risk

The Company's exposure to interest rate risk arises from fluctuations in fair value or future
cash flows of financial instruments due to changes in market interest rates. The Company's
borrowings comprise only Optionally Convertible Debentures (OCDs), carrying a fixed coupon
rate of 0.20% per annum (PY 2.50% p,a, and applicable YTM) and loan from promoters.
Accordingly, the Company is not exposed to material cash flow interest rate risk, as there are no
floating rate borrowings outstanding as at the reporting date.

Consequently, sensitivity to changes in market interest rates on the floating rate portion of
borrowings is not applicable to the Company.

ii) Inventory Price risk

The Company is exposed to the movement in price of principal finished product i.e. sugar &
alcohol. Prices of the sugar cane is fixed by government. Generally, sugar production is carried
out during sugar cane harvesting period from November to April. Sugar is sold throughout the
year which exposes the sugar inventory to the movement in the price. The Company monitors the
sugar prices on daily basis and formulates the sales strategy to achieve maximum realisation.
The sensitivity analysis of the change in sugar price on the inventory as at year end, other factors
remaining constant in given in table below:

Financial instruments measured at fair value can be divided into three levels 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 asset or liability that are not based on observable market data.

Following methods and assumptions are used to estimate the fair values:

a) Fair value of cash and short term deposits, trade and other short term receivables, trade
payables, other current liabilities and short term borrowings carried at amortised cost is not
materially different from it's carrying cost largely due to short term maturities of these financial
assets and liabilities.

b) Financial instruments with fixed and variable interest rate fall within level 2 of the fair value
hierarchy and are evaluated by Company based on parameters such as interest rate, credit
rating or assessed credit worthiness.

c) Non-listed shares and other securities fall within level 2 of the fair value hierarchy. Valuation
is based on the observable market approach EV/EBITDA multiple carried out by independent
registered valuer.

d) Fair value of the borrowing items fall within level 2 of the fair value hierarchy and is calculated
on the basis of discounted future cash flows.

e) Unlisted debt instruments fall within level 3 of the fair value hierarchy. Valuation is based on
discounted cash flow method.

Set out below is a comparison by class of the carrying amounts and fair value of the Company's

financial instruments that are recognised in the financial statements.

46 The Company holds investments aggregating ' 2,579.57 crore (Previous Year: ' 2530.58 crore) in its
subsidiaries, comprising equity investments, inter-corporate loans, and accrued interest thereon
which are identified as non-core assets as per terms of Framework Agreement, and are required to
be recovered. Management is pursuing appropriate measures to facilitate the recovery of the carrying
value of these exposures and remains confident about the realization of the same over a reasonable
period. Further, in line with the principles of prudence and conservatism, the Company has deferred
recognition of interest income amounting to ' 112.43 crore (Previous Year: ' 112.43 crore).

47 The Company has not entered into any transactions with the companies struck off under 248 of
the Companies Act 2013 or under section 560 of the Companies Act 1956, and does not carry any
balance/(s) outstanding to or from any such entity.

48 Information about leases
a Company as lessee

1 The expense relating to payments not included in the measurement of the lease liability is as
follows:

The Company has lease contracts for various items of land, buildings (including godowns),
vehicles and other equipment used it its operations. The Company's obligation under its lease are
secured by lessor's title to the leased assets. The Company also has certain leases of godowns
and vehicles with lease term of twelve months or less and leases of office equipment with low
value. The Company applies the 'short-term lease' and 'lease of low-value assets' recognition
exemptions for these leases. For long term lease arrangements the company comply with the
IND AS 116 and recognise right of use asset (ROU); in the current year and previous year there
is no long term lease.

b Company as lessor

The Company has entered into operating leases for land, aircraft and sub-leases for office
premises. These leases have different terms depending upon the agreements with respective
lessees . All leases include a clause to enable revision of the rental charge on mutual basis on
an annual basis according to prevailing market conditions. Rental income recognised by the
Company during the year is ' 6.25 Crore (previous year ' 6.21 Crore).

49 The Company and its erstwhile subsidiary Bajaj Hindusthan Sugar & Industries Limited (BHSIL,
merged with the Company in 2010) had made requisite minimum capital investment and established
an aggregate of 11 new sugar mills and 4 distillery units and also expanded capacity of sugar mills
during the years 2004 to 2008. All those mills were established & commercial production started
within the time prescribed under the policy i.e. 31st March' 2008.

As per the Sugar Industry Promotion Policy, 2004 (SIPP) announced by the Government of Uttar
Pradesh, the Company was entitled to various benefits in the form of grant of certain exemptions
/ incentives as also reimbursements of certain expenses and capital subsidy, available to the
eligible entrepreneurs based on the requisite investments in setting up new mills and or on capacity
expansion of sugar units in state of U.P. On making the requisite investment within prescribed period
of implementation, the "Eligibility Certificate” has already been issued to the Company and further
procedural instructions have also been issued by the State authorities to file information through
each jurisdictional authority in the respective districts to allow the benefits to the 7 new sugar mills
& 3 distilleries on starting their commercial production.

All the claims have been filed by the company within stipulated time as per the scheme. Till date the
Company has also availed & received partial benefits including reimbursement of capital subsidy
amount. However, due to an abrupt withdrawal / discontinuation of policy in the year 2007, the balance
amount of benefits and the eligibility certificate and procedural instructions to file information in
respect of these 4 new sugar mills and one distillery and further for expansion of one mill of erstwhile
subsidiary BHSIL (subsequently merged with the Company) is held up.

Consequently, the Current Assets include a sum of ' 592.38 Crores towards the aforesaid claims
under 2004 Policy. Since the authorities started denying the benefits so the Company challenged it
in the Hon'ble High Court of Allahabad all such denial orders of the Government based on the abrupt
withdrawal / discontinuing the policy with effect from 04.06.2007. Basically, the withdrawal of the
policy w.e.f. 04.06.2007 was a preponing process of date of completion of projects i.e. 31.03.2008
which otherwise was not relevant in the case of the Company since it has already completed the
installation and started the commercial production within the prescribed date and became eligible to
avail the benefits envisaged.

The Hon'ble High Court upheld the stand of the company and further held that the withdrawal of
Sugar Promotion Policy was arbitrary and without the application of mind. The Government of U.P.
preferred to file an SLP before the Hon'ble Supreme Court against the said orders of the Hon'ble High
Court of Allahabad. The Hon'ble Supreme Court turned down the stand of the Government of U.P. and
declined to interfere in the order of the Hon'ble High Court vide its order dated 07.03.2018. Given the
series of orders, and finally, from the Hon'ble Supreme Court, the Company again approached the
State of U.P. for release of its claims and accordingly re-submitted the required claim papers again.

The Company regularly followed up with the State of U.P. for settlement of its claims, and because of
unreasonable delay in settlement of the Company's claims, the Company filed a contempt petition in
the Hon'ble Supreme Court. During the pendency of the contempt petition, the Principal Secretary of
U.P. (Sugar) declined the claim of the company on unfounded grounds.

In the contempt petition filed by the Company in Hon'ble Supreme Court, the court expressed the view
that the matter involves issues which cannot be determined while exercising contempt jurisdiction.
Hence the petitioner (the Company), may approach the Court having original jurisdiction for the
matter. The company has filed the writ petition in the Hon'ble High Court of Allahabad; presently the
matter sub-judice in the Hon'ble High Court of Allahabad.

In the above writ petition, on an application filed by the State of U.P, the Hon'ble High Court vide an
interim order dated 31.01.2023 has deferred the hearing of the above writ petition on the ground
of pendency of civil appeal filed by State of UP against Mawana Sugar Limited before the Hon'ble
Supreme Court, in which action of withdrawal of SIPP, 2004 is sub-judice.

Aggrieved by the order dated 31.01.2023, the Company has filed a Special Leave Petition before the
Hon'ble Supreme Court, in which the Hon'ble Supreme Court vide an Order dated 23.10.2024 granted
liberty to Company to file Contempt Petition.

Consequently, the Company has filed a Contempt Petition (Civil) against the Cane Commissioner
and the Secretary to the Sugar Industry and Cane Development, U.P, before the Hon'ble Supreme
Court where the matter is sub judice. The management has evaluated the status of the ongoing
proceedings and, based on discussion with its legal counsel, expects to realise the aforesaid claim
tentatively within twelve months from the reporting date. Accordingly, the related amount has been
presented under current assets in the standalone financial statements.

50 The Company is covered under section 135(1) of the Companies Act 2013. However the average net
profits of the Company during the three immediately preceding years is negative, accordingly CSR
spending as mentioned in Section 135(5) is not applicable to the Company for the year 2025-26.

51 The Company reported positive EBITDA for the quarter and year ended March 31, 2026, and had a
positive net worth as at that date. In earlier periods, the Company's operations and liquidity position
were adversely affected by constrained availability of sugarcane and lower sugar recovery, primarily
due to delays in payment of cane dues, which led to a reduction in cane area and, consequently,
adversely impacted operational cash flows.

During the year, the Company undertook various measures to improve its operational and financial
performance. Pursuant to implementation of the approved Resolution Plan (refer note 20.2), the
sustainable debt has been repaid, and the unsustainable debt has been restructured. The restructuring,
inter alia, provides for a moratorium of five years on repayment of OCDs, reduction in the coupon rate
to 0.20% per annum and cessation of further accrual of YTM & RoR. These measures are expected
to reduce finance costs, improve liquidity and support operational improvements, including cane
development, improved sugar recovery and strengthening of overall operating efficiencies.

The lenders have also acknowledged the initiatives undertaken by the Company to improve plant
efficiency, optimise energy usage and strengthen cane development activities. Further, the Company
is pursuing its claim aggregating approximately ' 1,961 crores (including interest up to March 31,
2026) under the Sugar Industry Promotion Policy, 2004, which is presently sub judice. Management
expects a favourable outcome in this matter, which would further strengthen the Company's financial
position and liquidity.

Having regard to the above factors, including implementation of the debt restructuring plan,
improvement in liquidity position, operational improvements and the industry outlook, management
is of the view that the Company will be able to realise its assets and discharge its liabilities in the
normal course of business. Accordingly, these standalone financial statements have been prepared
on a going concern basis.

Note

1 Current ratio: Current ratio improved due to reduction in current liabilities on account of
payment / conversion of YTM and RoR obligations into equity or CCPS.

2 Debt equity ratio: Debt-equity ratio improved as YTM and RoR liabilities were converted into
equity / CCPS.

3 Debt service coverage ratio: Debt coverage ratio decreased due to payment of YTM, Ist
instalment of OCD.

4 Return on equity ratio: Figures are not comparable as YTM and RoR obligations were recognised
as a prior period error in finance cost in FY 2024-25.

5 Trade Receivable Turnover Ratio: The ratio improved in the current year due to improved
realisation from alcohol and sugar customers.

6 Net capital turnover ratio: Figures are not comparable as YTM and RoR obligations were
recognised as a prior period error resulting into increase in current liability of previous year.

7 Net profit ratio: Previous year net profit ratio changed due to restatement of previous year's
finance cost on account of prior period error.

54 Prior Period Error and Retrospective Restatement

During the year ended March 31, 2026, the Company implemented the approved Resolution Plan
pursuant to which Yield to Maturity (YTM) obligations aggregating to ' 3,584.95 crore and Right of
Recompense (RoR) obligations aggregating to ' 485.60 crore arising under earlier restructuring
arrangements were quantified and settled.

Historically, the Company had not recognised YTM obligations in its financial statements and had
disclosed the same as contingent liabilities. Further, under the Master Restructuring Agreement
(MRA) and the restructuring framework implemented under the Joint Lenders' Forum ("JLF")
mechanism, the lenders were entitled to a contractual Right of Recompense in respect of concessions,
reliefs and sacrifices extended to the Company. In earlier years, management had assessed that the
RoR obligation was contingent upon the occurrence of future events, including improvement in the
Company's financial performance and exercise of such rights by the lenders. Accordingly, the RoR
obligation was disclosed as a contingent liability. The amount of potential recompense was capable
of estimation and had been quantified and disclosed in the financial statements of earlier years.

During the course of implementation of the Resolution Plan, management undertook a detailed
reassessment of the underlying contractual arrangements, including the MRA, restructuring
documentation, lender communications and the basis on which the YTM and RoR obligations were
ultimately quantified and settled. Based on such reassessment, management concluded that the
Resolution Plan did not create new YTM or RoR obligations but merely provided the mechanism for
quantification and settlement of obligations arising from earlier restructuring arrangements.

Management further concluded that the underlying YTM and RoR obligations substantially related
to earlier reporting periods and represented obligations arising from the concessions, reliefs
and sacrifices granted by lenders under the restructuring framework. Accordingly, management
determined that the earlier non-recognition of such obligations did not appropriately reflect the
substance of the underlying contractual arrangements and the economic obligations arising
therefrom and therefore constituted a prior period error within the meaning of Ind AS 8 - Accounting
Policies, Changes in Accounting Estimates and Errors.

Management also assessed that recognition of the entire impact in the Statement of Profit and
Loss for the year ended March 31, 2026 would not appropriately reflect the financial performance
of the current year, as the underlying obligations substantially related to earlier reporting periods.
Accordingly, the Company has corrected the aforesaid prior period error by retrospectively restating
the comparative financial information in accordance with Ind AS 8 and the recognition principles
prescribed under Ind AS 37 - Provisions, Contingent Liabilities and Contingent Assets.

Consequently, YTM aggregating to ' 2,885.39 crore and RoR aggregating to ' 429.64 crore relating
to periods up to March 31, 2024 have been adjusted against opening retained earnings as at April 1,
2024. Further, YTM aggregating to ' 699.56 crore and RoR aggregating to ' 55.96 crore pertaining to
the year ended March 31, 2025 have been recognised in the comparative Statement of Profit and Loss
as finance cost, with a corresponding increase in other financial liabilities.

As a result of the aforesaid retrospective restatement, opening retained earnings as at April 1,
2024 stand reduced by ' 3,315.03 crore and finance cost for the year ended March 31, 2025 stands
increased by ' 755.52 crore. Comparative financial information, including earnings per share and
other affected disclosures, has been restated accordingly.

Accordingly, comparative financial information for the year ended March 31, 2025 and opening
balances as at April 1, 2024 have been retrospectively restated. In accordance with Ind AS 1 -
Presentation of Financial Statements, a third Balance Sheet as at April 1, 2024 has been presented.

The above tables present the impact of correction of the prior period error arising from non¬
recognition of YTM and RoR obligations in earlier reporting periods. The corresponding adjustments
have been reflected in the comparative financial information and related disclosures presented in
these standalone financial statements.

55 Additional disclosure requirement as per schedule III:

a) No funds (which are material either individually or in the aggregate) have been advanced or
loaned or invested (either from borrowed funds or share premium or any other sources or kind
of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities
('Intermediaries'), with the understanding, whether recorded in writing or otherwise, that the
Intermediary shall, 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 provide any
guarantee, security or the like on behalf of the Ultimate Beneficiaries.

b) No funds (which are material either individually or in the aggregate) have been received by the
Company from any person(s) or entity(ies), including foreign entities ('Funding Parties'), with
the understanding, whether recorded in writing or otherwise, that the Company shall, 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 provide any guarantee, security or
the like on behalf of the Ultimate Beneficiaries.

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

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

e) 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 (previous year) in the
tax assessments under the Income Tax Act, 1961.

56 Audit Trail

The Company uses SAP accounting software for maintaining books of account, which has a feature
of recording audit trail (edit log) facility and that has been operative throughout the financial year for
the transactions recorded in the software impacting books of accounts at application level. Also the
Company has preserved the audit trail as per the statutory requirement for record retention.

57 Events after the reporting date

Subsequent to the reporting date, the Company allotted 1,67,23,565 equity shares aggregating to '
8.56 crore and 44,56,67,369 Compulsorily Convertible Preference Shares ("CCPS") of face value Re. 1
each aggregating to ' 44.57 crore to Bank of India on April 1,2026 pursuant to the approved Resolution
Plan towards conversion of accumulated Yield to Maturity ("YTM") and Right of Recompense ("RoR")
obligations. The aforesaid amount had been disclosed as Share Application Money Pending Allotment
as at March 31, 2026.

58 The standalone financial statements were approved for issue by the Board of Directors, at its meeting
held on May 29, 2026

59 Previous year figures have been regrouped/ reclassified wherever necessary to correspond with the
current year's classification/ disclosures.