2.8 Provisions, contingent liabilities and contingent assets

(a) A provision is recognised if, as a result of a past event, Company has a present legal or constructive obligation
that can be estimated reliably and it is probable that an outflow of economic benefits will be required to settle
the obligation. Provisions are not recognised for future operating losses.

The amount recognised as a provision is the best estimate of the consideration required to settle the present
obligation as of the balance sheet date, considering the risks and uncertainties surrounding the obligation.

When some or all of the economic benefits required to settle a provision are expected to be recovered from
a third party, the receivable is recognised as an asset. Accordingly, the expense relating to the provision is
presented in the standalone statement of profit and loss, net of any reimbursement.

(b) Contingent Liabilities are disclosed in respect of possible obligations that arise from past events, but their
existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events
not wholly within the control of the Company or where any present obligation cannot be measured in terms
of future outflow of resources or where a reliable estimate of the obligation cannot be made.

(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.

2.9 Dividend payable

The final dividend on equity shares is recorded as a liability on the date of approval by the shareholders. Interim
dividends are recorded as a liability on the date of declaration by the Company's Board of Directors. Accordingly, a
corresponding amount is recognised directly in Equity.

2.10 Foreign currency transactions and translations

Transactions in foreign currencies are initially recorded at the exchange rate prevailing on the date the transaction
first qualifies for recognition.

Monetary assets and liabilities related to foreign currency transactions remaining outstanding on the balance sheet
date are translated at the exchange rate prevailing on the balance sheet date. Any income or expense arising on
foreign exchange difference either on settlement or on translation is recognised in the standalone statement of
profit and loss.

Non-monetary items carried at historical cost denominated in a foreign currency are translated using the exchange
rate at the date of the initial transaction.

Capital commitments denominated in foreign currencies are disclosed at the contracted amount in the foreign
currency and translated into the functional currency using the closing exchange rate as at the balance sheet date.

Such disclosures are made in the notes to the standalone financial statements.

2.11 Employee benefits

(a) Short-term employee benefits

Short-term employee benefits in respect of salaries and wages, including non-monetary benefits, are
recognised as an expense at the undiscounted amount in the standalone statement of profit and Loss in the
year in which the related service is rendered. A liability is recognised for the amount expected to be paid, if the
Company has a present legal or constructive obligation to pay this amount as a result of past service provided
by the employee and the obligation can be estimated reliably.

(b) Defined contribution plans

The Company pays provident and other fund contributions to publicly administered funds as per related
Government regulations.

The Company has no further obligation other than the contributions payable to the respective funds. The
Company recognises contribution payable to such funds as an expense when an employee renders the
related service.

(c) Defined benefit plans

The Company operates a defined benefit gratuity plan and the contribution towards it is made to "The
Balrampur Sugar Company Limited Employees Gratuity Fund" ("the Trust"). Trustees administer contributions
made to the Trust, which are invested through insurance companies.

The liability or asset recognised in the standalone balance sheet in respect of gratuity is the present value
of the defined benefit obligation as at the balance sheet date less the fair value of plan assets. The defined
benefit obligation is determined by external actuaries using the projected unit credit method.

Re-measurement gains and losses arising from experience adjustments and changes in actuarial assumptions
are recognised directly in other comprehensive income in the period they occur and are subsequently
transferred to Retained earnings.

(d) Other long-term employee benefits - compensated absences

The employees of the Company are entitled to compensated absences that are both accumulating and
non-accumulating in nature. The expected cost of accumulating compensated absences is determined by
external actuaries using the projected unit credit method for the unused entitlement accumulated at the
balance sheet date.

Re-measurements resulting from experience adjustments and changes in actuarial assumptions are recognised
in profit or loss in the period they occur. The obligations are presented as current liabilities in the standalone
balance sheet if the Company does not have an unconditional right to defer the settlement for at least twelve
months after the balance sheet date.

(e) Share-based payment arrangements

Equity settled share-based payment arrangements granted to eligible employees under "BCML Employees
Stock Appreciation Rights Plan 2023" ("ESAR 2023"/ "the Plan") are measured at the fair values of the underlying
equity estimated on the grant date and is recognised as an employee benefits expense, in the profit or loss
with a corresponding increase in equity, over the period that the rights are vested to the eligible employees.

The increase in equity recognised in connection with equity settled share-based payment transaction as
aforesaid is presented as a separate component in equity under "Share options outstanding account". The
amount recognised as an expense is adjusted to reflect the actual number of rights being vested over
the period.

Estimates are subsequently revised if there is any indication that the number of rights expected to vest differs
from previous estimates. Any adjustment to cumulative share-based compensation resulting from a revision
is recognised in the period in which they occur.

The amount recognised as an expense is also adjusted to reflect the number of rights for which the related
service and non-market performance conditions are expected to be met, such that the amount ultimately
recognised is based on the number of rights that meet the related service and non-market performance
conditions at the vesting date.

When the terms of an equity-settled rights are modified, the minimum expense recognised by the Company
is the grant date fair value of the unmodified award, provided the vesting conditions (other than a market
condition) specified on grant date of the rights are met. Further, additional expense, if any, is measured and
recognised as at the date of modification, in case such modification increases the total fair value of the share-
based payment plan.

Upon exercise of the rights, the proceeds received are credited to equity share capital and the related balance
standing to the credit of the share options outstanding account are transferred to securities premium.

If the vested rights are forfeited or are otherwise not exercised, the amounts recognised in this respect are not
reversed; however, they are transferred from" Share options outstanding account" to "General reserve".

2.12 Financial instruments

Financial assets and financial liabilities are recognised in the standalone balance sheet when the Company becomes
a party to the contractual provisions of financial instruments. The Company determines the classification of its
financial assets and financial liabilities at initial recognition based on its nature and characteristics.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date.

The Company categorises financial assets and financial liabilities measured at fair value into one of three levels
depending on the ability to observe inputs employed for such measurement:

(i) Level 1: Quoted prices (unadjusted) in active markets for identical financial assets or financial liabilities that

the Company can access at the measurement date.

(ii) Level 2: Inputs other than quoted prices included within level 1 observable for the financial asset or financial

liability, either directly or indirectly.

(iii) Level 3: Unobservable inputs for the financial asset or financial liability.

A. Financial assets

I. Initial recognition and measurement

The financial assets include investments, trade receivables, loans and advances, cash and cash
equivalents, bank balances other than cash and cash equivalents, derivative financial instruments and
other financial assets.

Financial assets (unless it is a trade receivable without a significant financing component) are initially
measured at fair value. Transaction costs directly attributable to the acquisition or issue of financial
assets (other than financial assets at fair value through profit or loss) are added to or are deducted from
the fair value of the financial assets as appropriate on initial recognition. However, trade receivables that
do not contain a significant financing component are measured at transaction price.

II. Subsequent measurement

For the purpose of subsequent measurement, financial assets are classified in the following categories:

(i) at amortised cost,

(ii) at fair value through other comprehensive income (FVTOCI), or

(iii) at fair value through profit or loss (FVTPI)

(a) Financial assets at amortised cost

A "financial asset" is measured at the amortised cost if the following two conditions are met:

(i) The asset is held within a business model whose objective is to hold the asset for collecting
contractual cash flows, and

(ii) Contractual terms of the asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.

Amortised cost is determined using the Effective Interest Rate ("EIR") method. Discount or premium
on acquisition and fees or costs forms an integral part of the EIR.

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

Financial assets are measured at fair value through other comprehensive income if these financial
assets are held both for collection of contractual cash flows and for selling the financial assets and
contractual terms of the financial assets give rise to cash flows representing solely payments of
principal and interest.

(c) Financial assets at fair value through profit or loss (FVTPL)

Financial assets that are not classified in any of the categories above are classified at fair value
through profit or loss.

(d) Equity investments

Equity investments in the scope of Ind AS 109 are measured at fair value except for investment in
associate, which are carried at cost.

The Company may make an irrevocable election to present in other comprehensive income
subsequent changes in the fair value. The Company makes such election on an instrument-by¬
instrument basis. The classification is made on initial recognition and is irrevocable.

If Company decides to classify an equity instrument at fair value through other comprehensive
income (FVTOCI), then all fair value changes on the instrument are recognised in other
comprehensive income. However, dividends on equity instruments on fair value through other
comprehensive income (FVTOCI) is recognised in profit or loss.

In addition, profit or loss arising on sale is also taken to other comprehensive income. The amount
accumulated in this respect is transferred within the Equity on derecognition.

III. De-recognition

The Company derecognises a financial asset only when the contractual rights to the cash flows from
the asset expires or transfers the financial asset and substantially all the risks and rewards of ownership
of the asset.

B. Financial liabilities

I. Initial recognition and measurement

The financial liabilities include trade and other payables, loans and borrowings, including book overdrafts,
derivative financial instruments, etc.

Financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to
the acquisition or issue of financial liabilities (other than financial liabilities at fair value through profit
or loss) are added to or deducted from the fair value of the financial liabilities, as appropriate, on
initial recognition.

II. Subsequent measurement

For subsequent measurement, financial liabilities are classified into two categories:

(i) Financial liabilities at amortised cost, and

(ii) Derivative instruments at fair value through profit or loss (FVTPL).

Financial liabilities at amortised cost

After initial recognition, financial liabilities are subsequently measured at amortised cost using the EIR
method, as applicable. When the financial liabilities are derecognised, gains and losses are recognised
in profit or loss. Discount or premium on acquisition and fees or costs forms an integral part of the EIR.

III. De-recognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled
or expires.

C. Derivative financial instruments

Initial recognition and subsequent measurement

A derivative financial instrument, such as foreign exchange forward contracts, is used to hedge foreign
currency risks. Such derivative financial instruments are initially recognised at fair value on the date 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
profit or loss.

D. Offsetting of financial instruments

Financial assets and financial liabilities, including derivative financial instruments, are offset and the net
amount is reported in the standalone balance sheet if there is currently an enforceable legal right to offset
the recognised amounts and there is an intention to settle on a net basis or to realise the assets and settle the
liabilities simultaneously.

E. Equity share capital

Ordinary shares are classified as Equity.

An equity instrument is a contract that evidences a residual interest in the Company's assets after deducting
all its liabilities.

Incremental costs directly attributable to the issuance of new equity shares and buy-back of equity shares are
shown as a deduction from the Equity net of any tax effects.

2.13 Impairment of Assets

(a) Non-financial assets

An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable
amount. The recoverable amount is the higher of an asset's fair value, less costs of disposal and its value
in use.

To assess impairment, assets are grouped at the lowest levels for which there are separately identifiable cash
flows (cash-generating units).

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to
the asset.

If, at the balance sheet date, there is an indication that a previously assessed impairment loss no longer exists,
the recoverable amount is reassessed and the impairment loss previously recognised is reversed so that the
asset is recognised at its recoverable amount but not exceeding the value which would have been reported
in this respect if the impairment loss had not been recognised.

(b) Financial assets

The Company recognises loss allowances using the Expected Credit Loss ("ECL") model for financial assets
measured at amortised cost.

The Company recognises lifetime expected credit losses for trade receivables. Loss allowance equal to the
lifetime expected credit losses are recognised if the credit risk of the financial asset has significantly increased
since initial recognition.

2.14 Income taxes

Income tax expense comprises current tax and deferred tax. It is recognised in the profit or loss except to the extent
that it relates to items directly recognised in Equity or Other comprehensive income (OCI).

The Company has determined that interest and penalties related to income taxes do not meet the definition
of income taxes and therefore accounted for them under Ind AS 37 Provisions, Contingent Liabilities and
Contingent Assets.

(a) Current tax

Current tax comprises the expected income tax payable or receivable on the taxable profit or loss for the
year, along with any adjustments relating to prior periods. It is determined based on the best estimate of
the amount expected to be paid to, or recovered from, the taxation authorities, using the tax rates and laws
enacted or substantively enacted as at the balance sheet date.

In correlation to the underlying transaction relating to Other comprehensive income and Equity, current tax
items are recognised in Other comprehensive income and Equity, respectively.

Management periodically evaluates positions taken in the tax returns to situations in which applicable tax
regulations are subject to interpretation. Then, full provisions are made where appropriate based on the
amount expected to be paid to the tax authorities.

The Company offsets current tax assets and current tax liabilities, where it has a legally enforceable right to
set off the recognised amounts and where it intends either to settle on a net basis or to realise the assets and
settle the liabilities simultaneously.

(b) Deferred tax

Deferred tax assets and liabilities are recognised in respect of temporary differences between the carrying
amounts of assets and liabilities for financial reporting purposes and the corresponding amounts used for
taxation purposes. Deferred tax is also recognised in respect of carried forward tax losses and tax credits.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when
the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or
substantively enacted as at the balance sheet date.

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

The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent
that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax
asset to be utilised.

Deferred tax items in correlation to the underlying transaction relating to Other comprehensive income and
Equity are recognised in Other comprehensive income and Equity, respectively.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current
tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same
taxation authority.

(c) Minimum Alternate Tax (MAT)

Deferred tax assets include Minimum Alternative Tax (MAT) paid under the tax laws in India, which is likely to
give future economic benefits in the form of availability of set-off against future income tax liability.

Accordingly, MAT is recognised as a deferred tax asset in the standalone balance sheet when the asset can be
measured reliably and it is probable that the future economic benefit associated with the asset will be realised.

2.15 Earnings per Share

(a) Basic earnings per share are computed by dividing the net profit after tax by the weighted average number of
outstanding equity shares.

(b) Diluted earnings per share are computed by dividing the net profit after tax (considered in determination of
basic earnings per share) after considering the effect of interest and other financing costs or income (net of
attributable taxes) associated with dilutive potential equity shares by the weighted average number of equity
shares considered for deriving basic earnings per share adjusted for the weighted average number of equity
shares that could be issued on the conversion of all dilutive potential equity shares.

2.16 Segment reporting

Operating segments are identified and reported considering the different risks and return, organisational structure
and internal reporting systems to the Chief Operating Decision Maker (CODM).

2.17 Cash and cash equivalents

Cash and cash equivalents in the standalone balance sheet comprise cash on hand, cheques on hand, balance
with banks and short-term highly liquid investments with an original maturity of three months or less and carry an
insignificant risk of changes in value.

For reporting Standalone Statement of Cash Flows, cash and cash equivalents consist of cash on hand, cheques
on hand, balance with banks and short term highly liquid investments, as stated above, net of outstanding book
overdrafts, as they are considered an integral part of the Company's cash management.

2.18 Statement of Cash Flows

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of
transactions of a non-cash nature, any deferrals, or accruals of past or future operating cash receipts or payments
and items of income or expenses associated with investing or financing flows. Accordingly, the Company's cash
flows from operating, investing and financing activities are segregated.

2.19 Exceptional items

Exceptional items include income or expenses that are part of ordinary activities. However, they are of such
significance and nature that separate disclosure enables the user of standalone financial statements to understand
the impact more clearly. These items are identified by their size or nature to facilitate comparison with prior periods
and assess underlying trends in the Company's financial performance.

The preparation of the Standalone financial statements in conformity with the measurement principle under Ind
AS requires the management to make estimates, judgements and assumptions. These estimates, judgements and
assumptions affect the application of accounting policies and the reported amounts of revenue, expenses, assets
and liabilities including the accompanying disclosures and the disclosure of contingent assets and liabilities.

The estimates, judgements and associated assumptions are based on historical experience and other factors that
are considered to be relevant. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised and future periods affected.

The application of accounting policies that require critical judgements and accounting estimates involving complex
and subjective judgements and the use of assumptions in these Standalone financial statements have been
disclosed herein below.

(i) Estimated useful life of property, plant and equipment

Property, plant and equipment represent a significant proportion of the asset base of the Company. The
charge in respect of periodic depreciation is derived after determining an estimate of an asset's expected
useful life and the expected residual value at the end of its life. The useful lives and residual value of the
asset are determined by the management when the asset is acquired and reviewed at-least annually during
each financial year-end. The lives are based on technical evaluation, technological obsolesces and historical
experience with similar assets as well as anticipation of future events, which may impact their lives. This re¬
assessment may result in a change in depreciation and amortisation expense in future periods.

(ii) Current taxes and deferred taxes

Significant judgement is required in the determination of the taxability of certain income and deductibility
of certain expenses during the estimation of the provision for income taxes and option to be exercised for
application of reduced rates of taxation on possible cessation of tax deduction and exhaustion of MAT credit
entitlement in future years based on estimates of future taxable profits.

Deferred tax assets are recognised for unused 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.

(iii) Retirement benefit obligations

The Company's retirement benefit obligations, cost of the defined benefit gratuity plan and the present value
of the gratuity 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, inflation, future salary increments 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-least annually during each financial year-end.

(iv) Fair value measurements 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 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.

(v) Provisions, contingent liabilities and contingent assets

The timing of recognition and quantification of the provisions, contingent liabilities and contingent assets
require the application of judgement to existing facts and circumstances which are subject to change on the
actual occurrence or happening. Judgement is required for estimating the possible outflow of resources, if
any, in respect of contingencies/ claims/ litigations against the Company and possible inflow of resources in
respect of the claims made by the Company which has been considered to be contingent in nature. These
are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

(vi) Equity settled share-based payment transactions

The cost of the Company's equity settled share-based payment to its employees are determined based on fair
value of the underlying equity instruments granted and rights expected to be exercised by the employees.