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<xbrli:xbrl xmlns:in-capmkt="https://www.sebi.gov.in/xbrl/2024-02-29/in-capmkt" xmlns:in-capmkt-ent="https://www.sebi.gov.in/xbrl/Announcement_For_Fraud_Or_Default/2024-02-29/in-capmkt/in-capmkt-ent" xmlns:in-capmkt-roles="https://www.sebi.gov.in/xbrl/Announcement_For_Fraud_Or_Default/2024-02-29/in-capmkt-roles" xmlns:xbrldt="http://xbrl.org/2005/xbrldt" xmlns:nonnum="http://www.xbrl.org/dtr/type/non-numeric" xmlns:in-capmkt-type="https://www.sebi.gov.in/xbrl/2024-02-29/in-capmkt-types" xmlns:link="http://www.xbrl.org/2003/linkbase" xmlns:net="http://www.xbrl.org/2009/role/net" xmlns:num="http://www.xbrl.org/dtr/type/numeric" xmlns:xlink="http://www.w3.org/1999/xlink" xmlns:iso4217="http://www.xbrl.org/2003/iso4217" xmlns:negated="http://www.xbrl.org/2009/role/negated" xmlns:xbrldi="http://xbrl.org/2006/xbrldi" xmlns:xbrli="http://www.xbrl.org/2003/instance" xmlns:xl="http://www.xbrl.org/2003/XLink"><link:schemaRef xlink:type="simple" xlink:href="in-capmkt-ent-2024-02-29.xsd"/><xbrli:context id="MainD"><xbrli:entity><xbrli:identifier scheme="https://www.sebi.gov.in/in-capmkt/NSESymbol">SHANTHALA</xbrli:identifier></xbrli:entity><xbrli:period><xbrli:startDate>2026-11-13</xbrli:startDate><xbrli:endDate>2026-11-13</xbrli:endDate></xbrli:period></xbrli:context><xbrli:context id="MainI"><xbrli:entity><xbrli:identifier scheme="https://www.sebi.gov.in/in-capmkt/NSESymbol">SHANTHALA</xbrli:identifier></xbrli:entity><xbrli:period><xbrli:instant>2026-11-13</xbrli:instant></xbrli:period></xbrli:context><in-capmkt:NSESymbol contextRef="MainI">SHANTHALA</in-capmkt:NSESymbol><in-capmkt:NameOfTheCompany contextRef="MainI">Shanthala FMCG Products Limited</in-capmkt:NameOfTheCompany><in-capmkt:WhetherDisclosureFiledForListedCompany contextRef="MainI">true</in-capmkt:WhetherDisclosureFiledForListedCompany><in-capmkt:PlaceOfOccurrenceOfEvent contextRef="MainI">Kodagu</in-capmkt:PlaceOfOccurrenceOfEvent><in-capmkt:TimeOfOccurrenceOfEvent contextRef="MainD">16:05:00</in-capmkt:TimeOfOccurrenceOfEvent><in-capmkt:TypeOfAnnouncement contextRef="MainI">New</in-capmkt:TypeOfAnnouncement><in-capmkt:TypeOfEventOfFraudOrDefaults contextRef="MainI">Initial Disclosure</in-capmkt:TypeOfEventOfFraudOrDefaults><in-capmkt:TypeOfDisclosureInRelationToEventOfFraudOrDefaults contextRef="MainI">Default</in-capmkt:TypeOfDisclosureInRelationToEventOfFraudOrDefaults><in-capmkt:CategoryOfEntityForWhichDisclosureIsFiledForFraudOrDefaults contextRef="MainI">Key managerial Personnel</in-capmkt:CategoryOfEntityForWhichDisclosureIsFiledForFraudOrDefaults><in-capmkt:RemarksForWebsiteDissemination contextRef="MainI">no</in-capmkt:RemarksForWebsiteDissemination><in-capmkt:DateOfReport contextRef="MainI">2026-11-13</in-capmkt:DateOfReport><in-capmkt:NatureOfFraudOrDefaultOrArrest contextRef="MainI">The findings of Forensic Audit Report specifically classified the irregularity as "misappropriation of companys funds</in-capmkt:NatureOfFraudOrDefaultOrArrest><in-capmkt:EstimatedImpactOfFraudOrDefaultOrArrestWasUnearthingOrOccurredOnTheListedEntity contextRef="MainI">Based on the Statutory Auditors report and forensic Investigation customer collections of Rs 794.36 lakh were not deposited into bank accounts, resulting in impairment loss of Rs 760.79 L &amp; loss after tax of Rs. 588.81 for F Y 25-26. Further Rs. 569.19 lakh was transferred to related parties withoutapprovals of which 57.84 Lakh remain outstanding as at March 31, 2026.

Additionally, the Company has withdrawn its distributorship arrangements with major vendors, as previously disclosed to the Stock Exchanges on May 13, 2026 and August 6, 2026.</in-capmkt:EstimatedImpactOfFraudOrDefaultOrArrestWasUnearthingOrOccurredOnTheListedEntity><in-capmkt:DateOfWhenTheFraudOrDefaultOrArrestWasUnearthingOrOccurred contextRef="MainI">2026-10-31</in-capmkt:DateOfWhenTheFraudOrDefaultOrArrestWasUnearthingOrOccurred><in-capmkt:TimeOfWhenTheFraudOrDefaultOrArrestWasUnearthingOrOccurred contextRef="MainD">04:05:00</in-capmkt:TimeOfWhenTheFraudOrDefaultOrArrestWasUnearthingOrOccurred><in-capmkt:NumberOfPersonsInvolvedInFraudOrDefaultOrArrestWasUnearthingOrOccurred contextRef="MainI">1</in-capmkt:NumberOfPersonsInvolvedInFraudOrDefaultOrArrestWasUnearthingOrOccurred><in-capmkt:NameOfPersonsInvolvedInFraudOrDefaultOrArrestWasUnearthingOrOccurred contextRef="MainI">Mr. Yogish Mallya, former Chief Financial Officer (Key Managerial Personnel).</in-capmkt:NameOfPersonsInvolvedInFraudOrDefaultOrArrestWasUnearthingOrOccurred><in-capmkt:EstimatedAmountInvolvedInFraudOrDefaultOrArrestWasUnearthingOrOccurred contextRef="MainI">Customer collecton of rs 794.36 Lakhsduring April 2025 to July 31, 2026 were not deposited in company bank accounts
Rs 569 Lakhs transferred to 2 relatred parties was transferred to 2 related parties during F.Y 25-26 without requisite approval of which 57.84 Lakh remained outstanding as at March 31, 2026</in-capmkt:EstimatedAmountInvolvedInFraudOrDefaultOrArrestWasUnearthingOrOccurred><in-capmkt:NameAndDetailsOfAppropriateAuthoritiesToWhomTheFraudOrDefaultOrArrestHasBeenReported contextRef="MainI">Yes. The Statutory Auditors have noted in their report that the matter falls under Section 143(12) of the Companies Act, 2013, and that Form ADT-4 will be filed with the Central Government</in-capmkt:NameAndDetailsOfAppropriateAuthoritiesToWhomTheFraudOrDefaultOrArrestHasBeenReported><in-capmkt:RemarksForWebsiteDisseminationForFraudOrDefaultOrArrestWasUnearthingOrOccurredRelatingToInitialDisclosure contextRef="MainI">No</in-capmkt:RemarksForWebsiteDisseminationForFraudOrDefaultOrArrestWasUnearthingOrOccurredRelatingToInitialDisclosure></xbrli:xbrl>
