H. Provisions and contingencies

I. Provisions

Mines reclamation

The Company provides for the costs of restoring
a mine where a legal or constructive obligation
exists. The estimated future costs for known
restoration requirements are determined on a
mine-by-mine basis and are calculated based
on the present value of estimated future
cash out flows.

The restoration provision before exploitation of
the raw materials has commenced is included in
Property, Plant and Equipment and depreciated
over the life of the related asset.

The effect of any adjustments to the provision
due to further environmental damage as a result
of exploitation activities is recorded through
the Statement of Profit and Loss over the life
of the related asset, in order to reflect the best
estimate of the expenditure required to settle the
obligation at the end of the reporting period.

Changes in the measurement of a provision that
result from changes in the estimated timing or
amount of cash outflows, or a change in the
discount rate, are added to or deducted from the
cost of the related asset to the extent that they
relate to the asset's installation, construction
or acquisition.

Provisions are discounted to their present value.
The unwinding of the discount is recognised as a
finance cost in the Statement of Profit and Loss.

Other provisions:

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. When the Company expects
some or all of a provision to be reimbursed,
for example, under an insurance contract, the
reimbursement is recognised as a separate asset,
but only when the reimbursement is virtually
certain. The expense relating to a provision is

presented in the statement of profit and loss net
of any reimbursement.

II. Contingent liability

A contingent liability is a possible obligation
that arises from the past events whose
existence will be confirmed by the occurrence or
non-occurrence of one or more uncertain future
events beyond the control of the Company or a
present obligation that arises from past events
and that is not recognised because it is not
probable that an outflow of resources embodying
economic benefits will be required to settle the
obligation. The Company does not recognise a
contingent liability but discloses its existence in
the financial statements.

I. Revenue recognition

Revenue is recognised on the basis of
approved contracts regarding the transfer
of goods or services to a customer for an
amount that reflects the consideration to
which the entity expects to be entitled in
exchange of those goods or services.

I. Sale of goods

Revenue from the sale of the goods is
recognised when delivery has taken
place and control of the goods has
been transferred to the customer
according to the specific delivery
term that have been agreed with the
customer and when there are no longer
any unfulfilled obligations.

Revenue is measured after deduction
of any discounts, price concessions,
volume rebates and any taxes or duties
collected on behalf of the government
such as goods and services tax,
etc. The Company accrues for such
discounts, price concessions and
rebates at inception to determine the
transaction price based on historical
experience and specific contractual
terms with the customer.

The disclosure of significant
accounting judgements, estimates and
assumptions relating to revenue from

contracts with customers are provided
in Note 1.4 (vi).

No element of financing is deemed
present as the sales are made with
credit terms largely ranging between
30 days and 60 days depending on the
specific terms agreed with customers.

II. Rendering of services

Income from services rendered is
recognised at a point in time based
on agreements / arrangements with
the customers when the services
are performed and there are no
unfulfilled obligations.

III. Contract assets, Trade receivables and
Contract liabilities:

Contract asset:

A contract asset is the right to
consideration in exchange for
goods or services transferred to the
customer. If the Company performs
by transferring goods or services to a
customer before the customer pays
consideration or before payment is
due, a contract asset is recognised
for the earned consideration that is
conditional. Contract assets are subject
to impairment assessment.

Trade receivables

A receivable represents the Company's
right to an amount of consideration that
is unconditional i.e., only the passage
of time is required before payment of
consideration is due and the amount is
billable. (Refer note 12).

Contract liabilities

A contract liability is the obligation to
transfer goods or services to a customer
for which the Company has received
consideration from the customer.
Contract liabilities are recognised as
revenue when the Company performs
obligations under the contract.

Rebates to customers
(Refund liabilities)

Rebates to customers is recognised
for the credit under various schemes
including expected future rebates
that are expected to be claimed by
the customers. The Company updates
its estimates of rebates at the end of
each reporting period. The Company
does not have material sales return
and hence, no liabilities are recognised
towards the sales.

IV. Interest income

I nterest income from a financial asset
is recognised when it is probable that
the economic benefits will flow to the
Company and the amount of income can
be measured reliably. Interest income is
accrued on a time basis, by reference
to the principal outstanding and at
the effective interest rate applicable,
which is the rate that exactly discounts
estimated future cash receipts through
the expected life of the financial asset
to that asset's net carrying amount on
initial recognition.

V. Dividends

Dividend income is recognised when
right to receive is established (provided
that it is probable that the economic
benefits will flow to the Company
and the amount of income can be
measured reliably).

J. Retirement and other employee benefits
I. Defined contribution plan

Employee benefits in the form of contribution to
Superannuation Fund, Provident Fund managed
by government authorities, Employees State
Insurance Corporation and Labour Welfare Fund
are considered as defined contribution plans
and the same are charged to the statement of
profit and loss for the year in which the employee
renders the related service.

II. Defined benefit plan

The Company's gratuity fund scheme, additional
gratuity scheme and post-employment benefit
scheme are considered as defined benefit plans.
The Company's liability is determined on the basis
of an actuarial valuation using the projected unit
credit method as at the balance sheet date.

Employee benefit in respect of certain categories
of employees, are provided in the form of
contribution to provident fund managed by a
trust set up by the Company till December 31,

2024, is charged to statement of profit and loss
for the year in which the employee renders the
related service. The Company has an obligation
to make good the shortfall, if any, between the
return from the investment of the trust and
interest rate notified by the Government of
India till December 31, 2024. Such shortfall is
recognised in the statement of profit and loss
based on actuarial valuation. W.e.f. January 01,

2025, such categories of employee benefit has
also been included in employee contribution plan
as stated above.

Past service costs are recognised in the statement
of profit and loss on the earlier of:

a. The date of the plan amendment or
curtailment, and

b. The date that the Company recognises
related restructuring costs

The net interest cost is calculated by applying the
discount rate to the net balance of the defined
benefit obligation and the fair value of plan
assets. The Company recognises the following
changes in the net defined benefit obligation as
an expense in the statement of profit and loss:

a. Service costs comprising current service
costs, past-service costs, gains and
losses on curtailments and non-routine
settlements; and

b. Net interest expense or income

c. Re-measurements, comprising actuarial
gains and losses, the effect of the asset
ceiling (if any), and the return on plan assets

(excluding net interest), are recognised
immediately in the balance sheet with a
corresponding debit or credit to retained
earnings through OCI in the period in which
they occur. Re-measurements are not
reclassified to the statement of profit and
loss in subsequent periods.

III. Short term employee benefits

a. Short term employee benefits that are
expected to be settled wholly within 12
months after the end of the period in
which the employees render the related
service are recognised as an expense at
the undiscounted amount in the statement
of profit and loss of the year in which the
related service is rendered.

b. Accumulated Compensated absences, which
are expected to be settled wholly within 12
months after the end of the period in which
the employees render the related service,
are treated as short term employee benefits.
The Company measures the expected cost
of such absences as the additional amount
that it expects to pay as a result of the
unused entitlement that has accumulated
at the reporting date.

IV. Other long-term employee benefits

Compensated absences are provided for on
the basis of an actuarial valuation, using the
projected unit credit method, as at the date of
the balance sheet. Actuarial gains / losses, if any,
are immediately recognised in the statement of
profit and loss.

Long service awards and accumulated
compensated absences which are not expected
to be settled wholly within 12 months after the
end of the period in which the employees render
the related service are treated as other long term
employee benefits for measurement purposes.

V. Termination benefits

Termination benefits are payable when
employment is terminated by the Company
before the normal retirement date, or when
an employee accepts voluntary redundancy
in exchange for these benefits. The Company

recognises termination benefits at the earlier
of the following:

a. when the Company can no longer withdraw
the offer of those benefits;

b. when the Company recognises costs for
a restructuring that is within the scope
of Ind AS 37 and involves the payment of
termination benefits.

In the case of an offer made to encourage
voluntary redundancy, the termination benefits
are measured based on the number of employees
expected to accept the offer. Benefits falling
due more than 12 months after the end of the
reporting period are discounted to present value.

VI. Presentation and disclosure

For the purpose of presentation of defined
benefit plans, the allocation between the short
term and long-term provisions have been made as
determined by an actuary. Obligations under other
long-term benefits are classified as short-term
provision, if the Company does not have an
unconditional right to defer the settlement
of the obligation beyond 12 months from the
reporting date. The Company presents the entire
compensated absences as short-term provisions
since employee has an unconditional right to
avail the leave at any time during the year.

K. Taxation

Tax expense comprises current income tax
and deferred income tax and includes any
adjustments related to past periods in current
and / or deferred tax adjustments that may
become necessary due to certain developments
or reviews during the relevant period.

I. Current income tax

Current income tax assets and liabilities are
measured at the amount expected to be recovered
from or paid to the taxation authorities. The tax
rates and tax laws used to compute the amount
are those that are enacted or substantively
enacted, at the reporting date in the countries
where the Company operates and generates
taxable income.

Current income tax relating to items recognised
outside the statement of profit and loss is
recognised in correlation to the underlying
transaction either in OCI or directly in equity.
Management periodically evaluates positions
taken in the tax returns with respect to situations
in which applicable tax regulations are subject
to interpretation and recognise expense
where appropriate.

Current tax assets and current tax liabilities are
offset when there is a legally enforceable right
to set off the recognised amounts and there is
an intention to settle the asset and the liability
on a net basis.

II. Deferred tax

Deferred tax is recognized for the future
tax consequences of deductible temporary
differences between the carrying values of assets
and liabilities and their respective tax bases at
the reporting date.

Deferred tax liabilities are recognised for all
taxable temporary differences, except:

Ý When the deferred tax liability arises from
the initial recognition of goodwill or an
asset or liability in a transaction that is not a
business combination and, at the time of the
transaction, affects neither the accounting
profit nor taxable profit or loss and does not
give rise to equal taxable and deductible
temporary differences.

Ý In respect of taxable temporary differences
associated with investments in subsidiaries,
associates and interests in joint ventures,
when the timing of the reversal of the
temporary differences can be controlled and
it is probable that the temporary differences
will not reverse in the foreseeable future.

Deferred tax assets are recognised for all
deductible temporary differences, the carry
forward of unused tax credits and any unused tax
losses. Deferred tax assets are recognised only to
the extent that it is probable that sufficient future
taxable income will be available against which
such deferred tax assets can be realised, except:

Ý When the deferred tax asset relating to
the deductible temporary difference arises

from the initial recognition of an asset
or liability in a transaction that is not a
business combination and, at the time of the
transaction, affects neither the accounting
profit nor taxable profit or loss.

Ý In respect of deductible temporary differences
associated with investments in subsidiaries,
associates and interests in joint ventures,
deferred tax assets are recognised only to the
extent that it is probable that the temporary
differences will reverse in the foreseeable
future and taxable profit will be available
against which the temporary differences
can be utilised.

The carrying amount of deferred tax assets
are reviewed at each balance sheet date.
The Company writes-down the carrying amount
of a deferred tax asset to the extent that it is
no longer probable that sufficient future taxable
income will be available against which deferred
tax asset can be realised. Any such write-down is
reversed to the extent that it becomes reasonably
certain that sufficient future taxable income
will be available.

Deferred tax assets and liabilities are measured
based on 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 at the reporting date.

Deferred tax relating to items recognised
outside the statement of profit and loss is
recognised outside profit or loss (either in
other comprehensive income or in equity).
Deferred tax items are recognised in correlation
to the underlying transaction either in OCI or
directly in equity.

Deferred tax assets and liabilities are offset
when there is a legally enforceable right to
offset current tax assets and liabilities and when
the deferred tax balances relate to the same
taxation authority.

The Company applies significant judgment
in identifying uncertainties over income tax
treatments. Uncertain tax positions are reflected
in the overall measurement of the Company's tax
expense and are based on the most likely amount

or expected value that is to be disallowed by the
taxing authorities whichever better predict the
resolution of uncertainty. Uncertain tax balances
are monitored and updated as and when new
information becomes available, typically upon
examination or action by the taxing authorities
or through statute expiration.

I n the situations where one or more units of
the Company are entitled to a tax holiday under
the tax law, no deferred tax (asset or liability) is
recognised in respect of temporary differences
which reverse during the tax holiday period, to the
extent the concerned unit's gross total income is
subject to the deduction during the tax holiday
period. Deferred tax in respect of temporary
differences which reverse after the tax holiday
period is recognised in the year in which the
temporary differences originate. However, the
Company restricts recognition of deferred tax
assets to the extent it is probable that sufficient
future taxable income will be available against
which such deferred tax assets can be realised.
For recognition of deferred taxes, the temporary
differences which originate first are considered
to reverse first.

L. Leases

The Company assesses whether a contract is
or contains a lease, at inception of a contract.
A contract is, or contains, a lease if the contract
conveys the right to control the use of an
identified asset for a period of time in exchange
for consideration.

i. Company as a lessee:

Right-of-use assets

At the date of commencement of the lease,
the Company recognises a right-of-use asset
and a corresponding lease liability for all lease
arrangements in which it is a lessee, except for
short-term leases and leases of low-value assets.

The right-of-use assets are initially recognised at
cost, which comprises the initial amount of the
lease liability adjusted for any lease payments
made at or prior to the commencement date
of the lease plus any initial direct costs less
any lease incentives. They are subsequently

measured at cost less accumulated depreciation
and accumulated impairment losses, if any.

Right-of-use assets are depreciated from the
commencement date on a straight-line basis over
the shorter of the lease term and useful life of the
underlying asset:

The right of use assets is also subject to
impairment. Right of use assets are evaluated
for recoverability whenever events or changes
in circumstances indicate that their carrying
amounts may not be recoverable.

Lease liabilities

Lease liability is initially measured at the present
value of the future lease payments. The lease
payments are discounted using the interest rate
implicit in the lease or, if not readily determinable,
using the incremental borrowing rates.
The Company uses the incremental borrowing
rate as the discount rate.

Lease payments included in the measurement
of the lease liability include fixed payments,
variable lease payments that depend on an index
or a rate known at the commencement date; and
extension option payments or purchase options
payments which the Company is reasonably
certain to exercise.

Variable lease payments that do not depend
on an index or rate are not included in the
measurement the lease liability and the ROU
asset. The related payments are recognised as
an expense in the period in which the event or
condition that triggers those payments occurs
and are included in the line "Other expenses” in
the Statement of Profit or Loss.

The lease term comprises the non-cancellable
lease term together with the period covered
by extension options, if assessed as reasonably
certain to be exercised, and termination

options, if assessed as reasonably certain not
to be exercised.

The lease liability is subsequently remeasured by
increasing the carrying amount to reflect interest
on the lease liabilities, reducing the carrying
amount to reflect the lease payments made.

ROU asset and l ease liabilities have been
separately presented in the Balance Sheet
and lease payments have been classified as
financing cash flows.

Short-term leases and leases of
low-value assets

The Company applies the short-term lease
recognition exemption to its short-term leases
(i.e., those leases that have a lease term of 12
months or less from the commencement date).
It also applies the low-value asset recognition
exemption on a lease-by-lease basis, if the lease
qualifies as leases of low-value assets. In making
this assessment, the Company also factors
below key aspects:

a) The assessment is conducted on an absolute
basis and is independent of the size, nature,
or circumstances of the lessee.

b) The assessment is based on the value of the
asset when new, regardless of the asset's
age at the time of the lease.

c) The lessee can benefit from the use of
the underlying asset either independently
or in combination with other readily
available resources, and the asset is
not highly dependent on or interrelated
with other assets.

d) I f the asset is subleased or expected to be
subleased, the head lease does not qualify
as a lease of a low-value asset.

Lease payments on short-term leases and leases
of low-value assets are recognised as expense
on a straight-line basis over the lease term.
The related cash flows are classified as Operating
activities in the Statement of Cash Flows.

II. Company as a lessor:

The determination of whether an arrangement is
(or contains) a lease is based on the substance

of the arrangement at the inception of the
lease. The arrangement is, or contains, a lease
if fulfilment of the arrangement is dependent
on the use of a specific asset or assets and the
arrangement conveys a right to use the asset or
assets, even if that right is not explicitly specified
in an arrangement. Leases are classified as
finance leases whenever the terms of the lease
transfer substantially all the risks and rewards
of ownership to the lessee. All other leases are
classified as operating leases. Rental income
from operating leases is generally recognised on
a straight-line basis over the term of the relevant
lease. Where the rentals are structured solely to
increase in line with expected general inflation
to compensate for the Company's expected
inflationary cost increases, such increases are
recognised in the year in which such benefits
accrue. Initial direct costs incurred in negotiating
and arranging an operating lease are added to
the carrying amount of the leased asset and
recognised on a straight-line basis over the lease.

M. Government grants and subsidies including
duty credits/refunds

Government grants are recognised at their fair
value when there is a reasonable assurance
that the grant will be received, and all attached
conditions will be complied with.

Where the grants relate to an item of expense,
they are recognised as income on a systematic
basis in the statement of profit and loss over the
periods necessary to match them with the related
costs, which they are intended to compensate.

Where 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 the statement of profit and loss over the
expected useful life in a pattern of consumption
of the benefit of the underlying asset.

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 financial liabilities.

Government grant receivables are discounted
to their present value. If the effect of the time
value of money is material, Government grant
receivables are discounted using a current pre-tax
rate that reflects current market assessments of
the time value of money and the risks specific to
the asset. When discounting is used, the increase
in the receivable due to the passage of time is
recognised as a component of "Government
grant including duty credits/refunds.

N. Earnings per share

Basic earnings per share are calculated by
dividing the net profit or loss for the period
attributable to equity shareholders by the
weighted average number of equity shares
outstanding during the period.

Diluted earnings per share are computed by
dividing the profit after tax as adjusted for
dividend, interest and other charges to expense
or income (net of any attributable taxes)
relating to the dilutive potential equity shares,
by the weighted average number of equity
shares considered for deriving basic earnings
per share and the weighted average number of
equity shares which could have been issued on
conversion of all dilutive potential equity shares.

O. Foreign currencies translations

The Company's standalone financial statements
are presented in (I), which is also the Company's
functional currency.

Monetary assets and liabilities denominated in
foreign currencies are translated at the functional
currency spot rates of exchange at the reporting
date. Exchange differences on monetary items
are recognised in profit and loss in the period in
which they arise.

Non-monetary items which are carried in terms of
historical cost denominated in a foreign currency

are reported using the exchange rate at the date
of the transaction.

P. Cash and cash equivalents

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

Q. Dividend

The Company recognises a liability to pay
dividend to equity holders of the Company
when the distribution is authorised, and the
distribution is no longer at the discretion of the
Company. As per the corporate laws in India, a
distribution is authorised when it is approved
by the shareholders. A corresponding amount is
recognised directly in equity.

R. Classification of current and non-current
assets and liabilities

The operating cycle is the time between the
acquisition of assets for processing and their
realisation in cash and cash equivalents.
The Company has identified twelve months as
its operating cycle for determining current and
non-current classification of assets and liabilities
in the Balance sheet.

S. Exceptional Items

Exceptional items refer to items of income or
expense, within the statement of profit and loss
from ordinary activities which are non-recurring
and are of such size, nature or incidence that
their separate disclosure is considered necessary
to explain the performance of the Company.

1.4 Use of estimates and judgments

The preparation of the Company's financial statements
requires management to make judgments, estimates
and assumptions that affect the reported amounts
of revenues, expenses, assets and liabilities, and
the accompanying disclosures, and the disclosure
of contingent liabilities. Uncertainty about
these assumptions and estimates could result in

outcomes that require a material adjustment to the
carrying amount of assets or liabilities affected in
future periods.

Estimates and judgments are continually evaluated
and are based on historical experience and other
factors, including expectations of future events that
are believed to be reasonable under the circumstances.

The 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 if the revision affects only that
period, or in the period of the revision and future
period, if the revision affects current and future
period. Revisions in estimates are reflected in the
financial statements in the period in which changes
are made and, if material, their effects are disclosed
in the notes to the financial statements.

The key assumptions concerning the future and other
key sources of estimation uncertainty at the reporting
date, that have a significant risk of causing a material
adjustment to the carrying amounts of assets and
liabilities within the next financial year, are described
below. Existing circumstances and assumptions about
future developments may change due to market
changes or circumstances arising that are beyond the
control of the Company. Such changes are reflected
in the assumptions when they occur.

I. Classification of legal matters and tax
litigations (Refer Note 43)

The litigations and claims to which the Company
is exposed to are assessed by management with
assistance of the legal department and in certain
cases with the support of external specialised
lawyers. Determination of the outcome of
these matters into "Probable, Possible and
Remote” require judgement and estimation on
case to case basis.

II. Defined benefit obligations (Refer Note 40)

The cost of defined benefit gratuity plans, and
post-retirement medical benefit is determined
using actuarial valuations. The actuarial valuation
involves making assumptions about discount
rates, future salary increases, mortality rates and
future pension increases. Due to the long-term
nature of these plans, such estimates are subject
to significant uncertainty.

III. Useful life of property, plant and equipment
(Refer Note 2)

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. Increasing an asset's expected
life or its residual value would result in a reduced
depreciation charge in the statement of profit
and loss. The useful lives of the Company's
assets are determined by management at the
time the asset is acquired and reviewed at least
annually for appropriateness. The lives are based
on historical experience with similar assets as
well as anticipation of future events, which may
impact their life, such as changes in technology.

IV. Impairment of Property, plant and equipment
(Refer Note 2)

Determining whether the property, plant and
equipment are impaired requires an estimate of
the value of use. In considering the value in use,
the management has anticipated the capacity
utilisation of plants, operating margins, mineable
resources and availability of infrastructure
of mines, and other factors of the underlying
businesses / operations. Any subsequent
changes to the cash flows due to changes in
the above-mentioned factors could impact the
carrying value of property, plant and equipment.

V. Incentives under the State Industrial Policy
(Refer Note 8 and 16)

The Company's manufacturing units in various
states are eligible for incentives under the
respective State Industrial Policy. The Company
accrues these incentives as refund claims in
respect of VAT/GST paid, on the basis that
all attaching conditions were fulfilled by the
Company and there is reasonable assurance
that the incentive claims will be disbursed by the
State Governments.

The Company measures expected credit losses
in a way that reflects the time value of money.
Any subsequent changes to the estimated
recovery period could impact the carrying value
of Incentives receivable.

VI. Discounts / rebate to customers (Refer Note

28)

The Company provides discount and rebates
on sales to certain customers. Revenue from
these sales is recognised based on the price
charged to the customer, net of the estimated
pricing allowances, discounts, rebates, and
other incentives. In certain cases, the amount of
these discount and rebates are not determined
until claims with appropriate evidence is
presented by the customer to the Company,
which may be some time after the date of sale.
Accordingly, the Company estimates the amount
of such incentives basis the terms of contract,
incentive schemes, historical experience adjusted
with the forward looking, business forecast and
the current economic conditions. To estimate
the amount of incentives, the Company uses the
most likely method. Such estimates are subject
to the estimation uncertainty.

VII. Physical verification of Inventory (Refer Note
10)

Bulk inventory for the Company primarily
comprises of coal, petcoke and clinker which are
primarily used during the production process at
the manufacturing locations. Determination of
physical quantities of bulk inventories is done
based on volumetric measurements and involves
special considerations with respect to physical
measurement, density calculation, moisture, etc.
which involve estimates / judgments.

VIII. For key estimates and judgements related to
fair values refer note 52(C).

1.5 New and amended standards

The Ministry of Corporate Affairs (MCA) notified the
Ind AS 117, Insurance Contracts, vide notification
dated August 12, 2024, under the Companies (Indian
Accounting Standards) Amendment Rules, 2024,
which is effective from annual reporting periods
beginning on or after 1 April 2024.

(i) Ind AS 117 Insurance Contracts is a comprehensive
new accounting standard for insurance contracts
covering recognition and measurement,
presentation and disclosure. Ind AS 117 replaces
Ind AS 104 Insurance Contracts. Ind AS 117 applies
to all types of insurance contracts, regardless of
the type of entities that issue them as well as
to certain guarantees and financial instruments
with discretionary participation features; a few
scope exceptions will apply. Ind AS 117 is based
on a general model, supplemented by:

Ý A specific adaptation for contracts
with direct participation features (the
variable fee approach)

Ý A simplified approach (the premium allocation
approach) mainly for short-duration contracts

The application of Ind AS 117 does not have
material impact on the Company's separate
financial statements as the Company has not
entered any contracts in the nature of insurance
contracts covered under Ind AS 117.

(ii) Amendments to Ind AS 116 Leases - Lease
Liability in a Sale and Leaseback

The MCA notified the Companies (Indian
Accounting Standards) Second Amendment
Rules, 2024, which amend Ind AS 116, Leases, with
respect to Lease Liability in a Sale and Leaseback.

The amendment specifies the requirements that
a seller-lessee uses in measuring the lease liability
arising in a sale and leaseback transaction, to
ensure the seller-lessee does not recognise any
amount of the gain or loss that relates to the
right of use it retains.

The amendment is effective for annual reporting
periods beginning on or after 1 April 2024 and
must be applied retrospectively to sale and
leaseback transactions entered into after the
date of initial application of Ind AS 116.

The amendments do not have a material impact
on the Company's financial statements.

Note 40: Employee benefits

a) Defined contribution plans - Amount recognised and included in note 34 "contributions to provident and other
funds” of Statement of Profit and Loss ' 14.49 crore till December 31, 2024 (March 31, 2024 - ' 15.25 crore).

b) Defined benefit plans

The Company has defined benefit gratuity plan, additional gratuity plan for certain category of employees and
trust managed provident fund plan. Trust managed provident fund plan was operative till December 31, 2024 and
thereafter the balance was transferred to the account of the Central board of trustees, Employees Provident Fund.
(Refer Provident Fund note below)

The gratuity and provident fund plan (till December 31, 2024) is in the form of a trust and it is governed by the Board
of Trustees appointed by the company. The Board of Trustees is responsible for the administration of the plan assets
including investment of the funds. The trust has developed policy guidelines for the allocation of assets to different
classes with the objective of controlling risk and maintaining the right balance between risk and long-term returns
in order to limit the cost to the Company of the benefits provided. To achieve this, investments are well diversified,
such that the failure of any single investment would not have a material impact on the overall level of assets.

Each year, the Board of Trustees and the Company review the level of funding. Such a review includes the asset-liability
matching strategy and assessment of the investment risk. The Company decides its contribution based on the results
of this annual review.

The plans in India typically expose the Company to actuarial risks such as: investment risk, interest rate risk, longevity
risk and salary risk.

Investment risk - As the plan assets include significant investments in quoted debt and equity instruments, the
Company is exposed to the risk of impacts arising from fluctuation in interest rates and risks associated with equity
market and related impairment.

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's 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 benefit 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.

Gratuity and additional gratuity

i. The Company operates a Gratuity Plan through a trust for all its employees. Employee who has completed
minimum five years of service is entitled to gratuity at 15 days salary for each completed year of service in
accordance with Payment of Gratuity Act, 1972. The scheme is funded with insurance companies in the form
of qualifying insurance policies managed by the trust.

i i. Every eligible employee who has joined the Company before December 01, 2006 and gets separated on

retirement or on medical grounds is entitled to additional gratuity provided he has completed minimum 25
years of service. The scheme is non funded.

Provident Fund

Provident Fund for certain eligible employees is managed by the Company through a trust "The Provident Fund of
ACC Limited", in line with the Provident Fund and Miscellaneous Provisions Act, 1952, During the year the Company
has submitted the application to surrender the provident fund exemption under the Employees' Provident Fund
& Miscellaneous Provisions Act, 1952 on its own volition with effect from January 01, 2025, with the relevant
authorities. The same has been approved by the Employees Provident Fund Organisation on provisional basis vide
its letter dated January 06, 2025 in respect of the Company.

In this regard, the Company has provisionally determined the obligation as at December 31, 2024 amounting to
' 628.97 crore. Accordingly an amount of ' 628.97 crore lying in the different classes of plan assets in the account of
The Provident Fund of ACC Limited has been transferred to the account of the Central board of trustees, Employees
Provident Fund on provisional basis. The Company do not expect any additional liabilities payable to Employees'
Provident Fund Organisation (EPFO).

(i) The sensitivity analysis as at year ended March 31, 2024, presented above may not be representative of
the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would
occur in isolation of one another as some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation
has been calculated using the projected unit credit method at the end of the reporting period, which is
the same as that applied in calculating the defined benefit obligation recognised in the balance sheet.

(ii) The Company had invested provident fund of ' 49 crore through a trust "ACC Limited (Trust)" in perpetual
bonds of IL&FS Financial Services Limited. In view of uncertainties regarding recoverability of this
investment, during the year ended December 31, 2019 the Company had provided ' 49 crore being the
change in re-measurement of the defined benefit plans, in Other Comprehensive Income towards probable
incremental employee benefit liability that may arise on the Company on account of any likely shortfall of
the Trust in meeting its obligations.

Subsequent to the provisional surrender of provident fund exemption, the Company has transferred all the
assets and liabilities except for the above securities which are carried at Nil fair value since earlier years.

a) I n 2012, the Competition Commission of India ('CCI') issued an Order imposing penalty on certain cement
manufacturers, including the Company, concerning alleged contravention of the provisions of the Competition
Act, 2002 and imposed a penalty of I 1,147.59 crore (March 31, 2024 I 1,147.59 crore) on the Company.
On Company's appeal, Competition Appellate Tribunal ('COMPAT') (who initially stayed the penalty), by its final
order dated December 11, 2015, set aside the order of the CCI and remanded the matter back to the CCI for
fresh adjudication and for passing a fresh order.

After hearing the matter, the CCI, by its order dated August 31, 2016, held that the cement companies and the
Cement Manufacturers Association are guilty and in violation of the Section 3(1) read with section 3(3)(a) and
Sec 3 (3)(b) of the Competition Act and imposed a penalty of I 1,147.59 crore (March 31, 2024 - I 1,147.59 crore)
on the Company.

The Company had appealed against the penalty to the COMPAT which granted a stay on November 07, 2016
with a condition to deposit 10% of the penalty amount, in the form of fixed deposit (the said condition has
been complied with) and levy of interest of 12% p.a. in case the appeal is decided against the appellant (the
"Interim order”). Interest amount on penalty as on March 31, 2025 is I 1,125 crore (March 31, 2024 - I 990.22
crore). Meanwhile, pursuant to the notification issued by Central Government on May 26, 2017, any appeal,
application or proceeding before COMPAT is transferred to National Company Law Appellate Tribunal (NCLAT).

NCLAT vide its order dated July 25, 2018, dismissed the Company's appeal and upheld the CCI's order. Against the
above order of NCLAT, the Company appealed before the Hon'ble Supreme Court on September 12, 2018, which
by its order dated October 05, 2018 had admitted the appeal and directed that the interim order passed by the
COMPAT will continue in the meantime. Presently, the matter is pending for hearing with Hon'ble Supreme Court.
Based on the advice of external legal counsel, the Company believes it has a strong case on merits for
successful appeal in this matter. Accordingly, the Company is of the view that no provision is necessary in the
financial statements.

b) In a separate matter, the Director, Supplies and Disposal, Haryana filed information that seven cement companies
including the Company had allegedly engaged in collusive bidding in contravention of the Competition Act,
2002. The CCI by its order dated January 19, 2017, imposed a penalty of I 35.32 crore (March 31, 2024 - I 35.32
crore) on the Company.

The Company has filed an appeal against the order of the CCI before the COMPAT which had stayed the order
of the CCI. The matter is now listed before the NCLAT and is pending for hearing.

Based on the advice of external legal counsel, the Company believes it has a strong case on merits for a
successful appeal in this matter. Accordingly, the Company is of the view that no provision is necessary in the
financial statements.

c) A matter wherein service tax department issued show cause notices for denial of cenvat credit with regard to
service tax paid on outward transportation for sale to customers on Freight On Road (F.O.R.) basis, was classified
as "possible" and accordingly I 81.59 crore was disclosed as contingent liability as on March 31, 2024. In the
current year, the company has received favourable order from CESTAT Delhi for an identical case, basis which the
company has reassessed it's position and determined that it has "remote" exposure with respect to these cases.
Accordingly, pending cases amounting to I 79.58 crore has been classified from contingent liability to remote.

d) The Company has received demand notice from the Government of Tamil Nadu and an order by the Collector,
Coimbatore seeking annual compensation for the period from April 01, 1997 to March 31, 2014 and April 01, 2014
to March 31, 2019, amounting to I 73.46 crore (March 31, 2024 - I 73.46 crore) and I 138.76 crore (March 31,
2024 - I 138.76 crore) respectively for use of the Government land for mining, which the Company occupies on
the basis of the mining leases. The Company has challenged the demands by way of revision under the Mineral
Concession Rules and has filed writ petitions before the Hon'ble High Court of Tamil Nadu at Chennai.

Pending the same the High Court of Tamil Nadu, in the group writ petitions of other cement manufacturers viz
Dalmia Cements, Madras Cements and others, has passed a judgement allowing annual compensation to be
collected by the state. The Company has filed a writ appeal against the judgement.

One of the above petition challenging the demand for the period April 01, 2014 to March 31, 2019, is disposed
of against the Company by the High Court vide order dated December 14, 2021 in line with the above judgment.
The Company has filed a writ appeal before the divisional bench of High Court against this judgement.
The Hon'ble High Court vide its order dated January 08, 2025, inter alia granted a stay against the demands
towards annual compensation for the period from April 01, 1997 to March 31, 2019.

The Company has assessed the matter as "possible”.

e) The Company was entitled to excise duty incentives for the assessment years 2006-07 to 2015-16 for its Gagal
plant located in the state of Himachal Pradesh. ACC has been contending that the said incentives are in the
nature of capital receipts and hence not liable to income tax.

Basis the favourable orders, at the Income Tax Appellate Tribunal (ITAT) level, matters amounting to 1 510.13
crore along with interest payable of I 103.81 crore has been re-assessed as remote, which was disclosed as
contingent liability in March 2024.

f) The Company had availed sales tax incentives in respect of its new 1 MTPA Plant (Gagal II) under the Himachal
Pradesh (HP) State Industrial Policy, 1991. The Company had accrued sales tax incentives aggregating 1 56.30
crore (March 31, 2024 - I 56.30 crore) during financial year 1995-96 to 2001-02. The Sales tax authorities
introduced certain restrictive conditions in 1996 after commissioning of the unit stipulating that incentive is
available only for incremental amount over the base revenue and production of Gagal I prior to the commissioning
of Gagal II. The Company contends that such restrictions are not applicable to the unit as Gagal II is a new unit,
as decided by the Hon'ble Supreme Court while determining the eligibility for transport subsidy vide order dated
August 02, 2010. The Department recovered I 64.45 crore (March 31, 2024 - I 64.45 crore) (tax of I 56.30
crore and interest of I 8.15 crore) which is considered as recoverable in the books.

The HP Hon'ble High Court, had, in September 09, 2013, dismissed the Company's appeal. The Company has
been advised by legal experts that there is no change in the merits of the Company's case. Based on such
advice, the Company filed a Special Leave Petition (SLP) before the Hon'ble Supreme Court on November 13,
2013, which is pending for hearing. The Company has assessed the matter as "possible".

g) A matter wherein GST department issued show cause notices dated January 25, 2018 and February 01, 2018
for denial of unutilized CENVAT Credit of 'Clean Energy Cess' carried forward in the GST as Tran-1 in accordance
with the provisions of Section 140(1) of the CGST Act, 2017. Considering judicial precedents and based on legal
opinion, the Company has assessed the matter as "possible". Accordingly, 162.60 crore (March 31, 2024 162.60
crore) has been disclosed as contingent liability.

h) The Company has received demand notices in October 03, 2024 to deposit a sum of 1 137.65 crore and 1 8.06
crore for allegedly mining of limestone at Madukkarai without Environmental Clearance for the period from
2000-01 to 2019-20 pursuant to the judgment of Supreme Court in Common Cause v Union of India & Ors
in case of other companies. The Company has challenged the demands by way of revision application under
Section 30 of the Mines and Minerals (Development & Regulation) Act, 1957 before the Hon'ble Revisionary
Authority, Ministry of Mines.

The Company contends that the mining operations were carried at Madukkarai on under a valid approvals from
the statutory authorities as per EIA 1994 for the period prior to 2005 and the Company had applied and was
granted Environmental Clearance in 2005. The Company has assessed the matter as "possible".

Note 44: Material demands and disputes considered as remote

Based on case by case assessment, the Group has disclosed certain matters below, where the outflow of resources
embodying economic benefits has been assessed as remote.

a) The Company was eligible for certain incentives in respect of its investment towards modernisation and expansion
of the Chaibasa cement unit under the State Industrial Policy of Jharkhand. Accordingly, the Company has made
claims for refund of VAT paid during 2005 to 2014. However, no disbursals were made (except an amount of 1 7.00
crore representing part of the one time lumpsum capital subsidy claim of 1 15.00 crore) as the authorities have
raised new conditions and restrictions. The Company had filed two writ appeals before the Jharkhand Hon'ble High
Court against these conditions, restrictions and disputes.

Jharkhand Hon'ble High Court, while dealing with appeals by both the Company and the State Government allowed
the Company's appeal while dismissing the Government's, appeal vide order dated February 24, 2015.

The Government of Jharkhand had filed an Special leave petition (SLP) in the Hon'ble Supreme Court which vide
its interim order on August 14, 2015 stayed disbursement of 40% of the amount due. Consequently, as of date, the
Company received 1 64.00 crore (March 31, 2024 - 1 64.00 crore) out of total 1 235.00 crore (March 31, 2024 - 1
235.00 crore) in part disbursement from the Government of Jharkhand. The company has recognised 1 179 crore
with respect to the matter in the books

The Company is of the view and has been advised legally, that the merits are strongly in its favour and it expects
that the SLP will be rejected upholding the order of Jharkhand Hon'ble High Court.

The Company has assessed the matter as "remote".

b) The Company is eligible for incentives for one of its cement plants situated in Maharashtra under a Package scheme
of incentives of the Government of Maharashtra. The scheme inter alia, includes refund of royalty paid by the
Company on extraction or procurement of various raw materials (minerals). The Department of Industries has
disputed the Company's claim for refund of royalty basis interpretation of the sanction letter dated February 06,
2013 issued to the Company. The Company has accrued an amount of 1 133.00 crore (March 31, 2024 - 1 133.00
crore) for such incentive. The Company has filed an appeal before the Hon'ble Bombay High Court challenging the
stand of the Government, which is admitted and pending before the High Court for hearing since December 11, 2014.
The Company has assessed the matter as "remote".

c) The Company had set up a captive power plant ('Wadi TG 2') in the year 1995-96. This plant was sold to Tata Power
Co Ltd, in the year 1998-99 and was subsequently repurchased from it in the year 2004-05. The Company had
purchased another captive power plant ('Wadi TG 3', set up by Tata Power Co Ltd in the year 2002-03) in 2004-05.
Both these power plants were eligible for tax holiday under the provisions of Section 80-IA of the Income-tax Act,
1961. The Income tax department has disputed the Company's claim of deduction under Section 80-IA of the Act,
on the ground that the conditions prescribed under the section are not fulfilled. In case of Wadi TG 2, in respect of
the demand of 1 56.66 crore (net of provision) (March 31, 2024 - 1 56.66 crore), the Company is in appeal before
the Income Tax Appellate Tribunal(ITAT). In case of Wadi TG 3, demand of 1 115.62 crore (March 31, 2024 - 1 115.62
crore) was set aside by the Income Tax Appellate Tribunal(ITAT) and department is in appeal against the said decision
with High Court Bombay. The Company has assessed the matter as "remote".

d) One of the Company's cement manufacturing plants located in Himachal Pradesh was eligible under the State
Industrial Policy for deferral of its sales tax liability based on Himachal Pradesh General sales tax (Deferred payment
of tax) Scheme 2005. The State Excise and Taxation department disputed the eligibility of the Company to such
deferment on the ground that the cement falls in the negative list. The disputed amount of I 82.37 crore is based
on the computation of tax exemption benefit availed by the company (March 31, 2024 - I 82.37 crore). The Ld.
Commissioner vide Notice dated June 02, 2012 alleged that the Deferment Certificates are illegal, improper, legally
unsustainable and prejudicial to the Revenue. The impugned notice proposed to revise the Deferment Certificates.

The Company filed a writ petition before the Hon'ble High Court of Himachal Pradesh on May 05, 2012.

The case has been admitted and the hearing is in process. The Company has assessed the matter as "remote".

e) The Company was contesting the renewal of mining lease in state of Jharkhand for two of its quarries on lease.
There was an unfavourable order by the Hon'ble Supreme Court in case of another Company restricting the "deemed
renewal" provision of captive mining leases. The Company received demand from district mining officer for I 881.00
crore (March 31, 2024 - I 881.00 crore) on October 05, 2015 as penalty for alleged illegal mining activities carried
out by the Company during January 1991 to September 2014.

On January 02, 2015, the Central Government promulgated the Mines and Minerals (Development and Regulation)
Amendment) Ordinance, 2015 [subsequently enacted as Mines and Minerals (Development and Regulation)
(Amendment) Act, 2015 in March 2015] amending mining laws with retrospective effect, and decided that all leases
granted prior to ordinance will deemed to have been automatically renewed until prescribed period therein.

The Company then filed a writ petition with High Court of Jharkhand for directing the State government to renew
both the leases upto March 2030 as per the Ordinance. On October 31, 2015 the High Court passed an interim
order in terms of Section 8A(5) of the Ordinance for quarry II extending the lease upto March 2030 permitting the
Company to commence mining operations after depositing I 48.00 crore subject to the outcome of the petition
filed by the Company.

The Company has assessed the matter as "remote".

f) The Company was contesting the demand before the Revisional Authority, Ministry of Mines raised by the State of
Karnataka towards differential royalty of I 257 crore (March 31, 2024 I 502.71 crore) for the period from 1995-96 to
2022-23 calculated on the basis of a limestone to clinker conversion ration rather than the actual weighment of the
limestone for the limestone mined at Wadi Mine. The Revisional Authority had vide an interim order dated October 29,
2024 directed the State Government to take steps to allow the Company to generate mining permits for the limestone
mined at its Wadi Mine. The Company contends that calculation of royalty on the basis of a fixed notional ratio
adopted by the State Government is arbitrary and without basis instead of the actual weighment of limestone.

The Company has filed a writ petition before the Karnataka High Court in September 10, 2024 seeking enforcement
of the interim order of the Revisionary Authority and execution of supplementary mining lease deed. While the
matter was pending, the State Government has formed a High Level Committee to examine the demands raised
upon the Company. Taking note of this development, the High Court has directed the State Government to allow the
Company to generate mining permits after the Company deposit I 125 crore which shall be subject to adjudication
of the High Level Committee.

The Company has assessed the matter as "remote" as the adoption of a fixed notional ratio for computation of royalty
payable instead of actual weighment is arbitrary and without basis.

g) The Company has received a demand notice from the Collector, Coimbatore in February 2025 seeking annual
compensation for the period from April 01, 2019 to March 31, 2024 amounting to I 91.53 crore for use of the
Government land for mining, which the Company occupies on the basis of the mining leases allotted by Government
of Tamil Nadu. The Company has challenged the demand by way of a writ petition before the High Court of Tamil
Nadu at Chennai on March 03, 2025. The Company contends that the State Government is not entitled to receive

annual compensation under Rule 72 of Mineral Concession Rules and further, no annual compensation could be
levied upon the Company in any case once the mining operations were discontinued.

The Company has assessed the matter as "remote" as compensation under Rule 72 cannot be levied by the State
Government on Govt. lands and particularly, since the mining operations had been discontinued since June 14, 2020.

h) In the year 2010-11 & 2011-12, the Rajasthan unit of the company sent cement as stock transfer to its branches outside
the state and subsequently sold the cement from such branches outside the state to customers. The Rajasthan
State Commercial Tax department has considered such stock transfer as sale and raised sales tax demand of I 76.61
crore (March 31, 2024 - I 76.61 crore). The matter is currently pending with Rajasthan State Tax Tribunal.

Considering judicial precedents and based on legal opinion, the Company has assessed the matter as "remote".

i) The Company has received in the current year, the GST department initiated proceedings under Section 73 of the
CGST/BGST Act, 2017 alleging discrepancies in the financial year 2019-2020 with respect to excess ITC claims and
mismatches in taxable supplies. A Show Cause Notice was issued on May 28, 2024, followed by a final order via
DRC-07 on August 21, 2024. Subsequently, the Company filed a writ petition before the Patna High Court (CWJC
No. 17748 of 2024), which set aside the order citing the absence of a personal hearing and accordingly remanded
the case back to the Assessing Officer who again issued a new order dated March 03, 2025 and revised the demand
to ' 50.16 crore. Considering judicial precedents and based on legal opinion, The Company has assessed the
matter as "remote".

Note 48.

(i) The Company had invested I 38.10 crore (March 31, 2024 - I 38.10 crore) in equity shares of Lucky Minmat Limited
(LML), a wholly owned subsidiary of the Company. In view of no mining activities being carried out in LML, ongoing
litigation on transfer of lease rights and amendments brought in to the Mines and Minerals (Development and
Regulations) Amendment Act, 2021, the Company has reassessed the value of investments and accordingly,
during the year ended December 31, 2021, the Company has recognised an impairment loss of I 38.10 crore in the
value of investment.

(ii) The Company has investment in ACC Mineral Resources Limited (AMRL), a wholly-owned subsidiary of I 106.80
crore (March 31, 2024 - I 106.80 crore). AMRL, through its joint operations had secured development for four coal
blocks allocated to Madhya Pradesh State Mining Corporation Limited. These allocations stand cancelled pursuant
to the judgment of Supreme Court dated August 25, 2014 read with its order dated September 24, 2014.

Subsequent to the aforesaid cancellation, Bicharpur and Marki Barka being two of the four blocks were auctioned
by the Government through Nominated Authority. In this connection, The Hon'ble Delhi High court in its judgment
dated March 09, 2017 has said that "whatever has transpired after March 31, 2014 and goes towards affecting the
quantum of compensation for mine infrastructure, must also be taken into account. Thereafter Ministry of Coal,
Govt. of India issued notification in February 2018 to file fresh claim as per format issued by Nominated Authority.
Accordingly a fresh claim of I 54 crore was filed with Ministry of Coal for reimbursement of expenses incurred up to
the date of vesting order. The decision / valuation of our claim by Ministry of Coal is awaited. Re-auction/allocation
process of other two coal blocks has not yet been carried out by the Ministry of Coal, Government of India.

The Company had assessed the recoverability of amount incurred on development of these coal blocks and
accordingly part of the value of investment of I 42.81 crore was impaired in the earlier years. Based on the further
assessment, above the Company has concluded that no further impairment is necessary as at the reporting date.

Note 49. Arrangements with Associates and Joint Ventures

(i) The Company has arrangements with an associate company, Alcon Cement Company Private Limited, whereby
the Company sells clinker and purchases cement manufactured out of such clinker. While the transactions are
considered as individual sale / purchase transactions for determination of taxable turnover and tax under GST laws.
Considering the accounting treatment prescribed under various accounting guidance, revenue for sale (excluding
GST) of such clinker of I 12.70 crore (March 31, 2024 - I 18.45 crore) has not been recognised as a part of the income
but has been adjusted against cost of purchase of Cement so converted.

(ii) The Company has arrangement with a Joint venture company Aakaash Manufacturing Company Private Limited,
whereby the Company purchases Ready Mix Concrete and sells that to external customers. While the transactions
are considered as individual sale / purchase transactions for determination of taxable turnover and tax under GST
laws, however, based on the terms of the arrangement and considering the accounting treatment prescribed under
various accounting guidance, revenue for sale (excluding GST) of such Ready Mix Concrete to customer of I 106.03
crore (March 31, 2024 - I 112.68 crore) is adjusted against cost of purchase of Ready Mix Concrete and consideration
is recognised on net basis.

During the reporting period ending March 31, 2025 and March 31, 2024, there was no transfer between level 1 and
level 2 fair value measurement.

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

Level 1: Investment in Government securities, which are classified as FVTPL are measured based on market price at
the reporting date

Level 2: Investments in liquid and short-term mutual funds, which are classified as FVTPL are measured using net
asset values as declared by the Mutual fund at the reporting date multiplied by the quantity held. The fair value of
forward foreign exchange contracts is calculated as the present value determined using forward exchange rates at
the reporting date.

Level 3: The fair value of unquoted instruments is estimated by discounting future cash flow or price of
recent transaction.

Fair value of financial assets and financial liabilities that are not measured at fair value (but fair value
disclosures are required)

The management consider the carrying values of Other Cash and cash equivalents, Bank balances other than cash
and cash equivalents, investment in bonds, security deposits, loans and other financial assets, trade receivables,
trade payables, security deposits and retention money and other financial liabilities (except derivative financial
instruments) approximate their carrying amounts largely due to the short-term maturities of these instruments.

Note 53: Financial risk management objectives and policies

Financial risk evaluation and management is an ongoing process within the Company. The Company has a system based
risk management framework to identify, monitor, mitigate and minimize risks arising from financial instruments.

The Company is exposed to market, credit and liquidity risks. The Board of Directors ('Board') oversee the management
of these risks through its Risk Management Committee. The Company's Risk Management policy has been formulated

by the Risk Management Committee and approved by the Board. The Policy articulates on the Company's approach
to address uncertainties in its endeavour to achieve its stated and implicit objectives. It also prescribes the roles and
responsibilities of the Company's management, the structure for managing risks and the framework for risk management.
The framework seeks to identify, assess and mitigate risks in order to minimize potential adverse effects on the Company's
financial performance.

All derivative activities for risk management purposes are carried out by specialist teams that have the appropriate skills,
experience and supervision. It is the Company's policy that no trading in derivatives for speculative purposes shall be
undertaken. The Board of Directors reviews and agrees on policies for managing each of these risks, which are summarised
below. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk.

(i) Credit risk

Credit risk is the risk that the counterparty will not meet its obligations under a financial instrument or customer
contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily
trade receivables) and from its investing activities, including deposits placed with banks and financial institutions
and other financial instruments.

Financial assets other than trade receivables

Credit risk from balances with banks and financial institutions is managed by the Company's treasury department in
accordance with its policy. Surplus funds are parked only within approved investment categories with well defined
limits. Investment category is periodically reviewed by the Company's Board of Directors.

Credit risk arising from short term liquid funds, other balances with banks and other cash equivalents is limited and
no collaterals are held against these because the counterparties are banks and recognised financial institutions
with high credit ratings assigned by the credit rating agencies. None of the financial instruments of the Company
result in material concentration of credit risks.

Other financial assets mainly include incentives receivable from the government, loans and security deposits given.
There are no indications that defaults in payment obligations would occur in respect of these financial assets.

Incentives receivable from the Government

The Company has manufacturing units in various states; mainly those in Maharashtra, Uttar Pradesh and Jharkhand
are eligible for incentives under the respective State Industrial Policy.

The Company has been accruing these incentives as refund claims in respect of VAT / GST paid.

The Company has estimated the expected credit loss based on time period to recover these incentives and carries
a provision of I 204.53 crore as at March 31, 2025 (March 31, 2024 - I 171.42 crore).

The Company is confident about the ultimate realisation of the dues from the State Governments and there is no
risk of default.

Trade receivables

Customer credit risk is managed as per the Company's established policy, procedures and control relating to customer
credit risk management. Credit quality of a customer is assessed based on an extensive credit rating scorecard
and individual credit limits are defined in accordance with this assessment. Outstanding customer receivables are
regularly monitored. The requirement for impairment is analysed at each reporting date on an individual basis for
major customers. The management is also monitoring the receivables levels by having frequent interactions with
responsible persons for highlighting potential instances where receivables might become overdue.

Trade receivables consist of a large number of customers spread across India with no significant concentration of
credit risk. Ongoing credit evaluation is performed on the financial condition of accounts receivable. The Company
has adopted a policy of only dealing in creditworthy counterparties and obtaining collateral i.e. security deposit.
No single customer accounted for 10% or more of the Company's net sales. Therefore, the Company does not expect
any material risk on account of non-performance by any of its counterparties.

For Company's exposure to credit risk by age of the outstanding from various customers refer note - 12.

Expected credit loss assessment

For trade receivables, as a practical expedient, the Company compute credit loss allowance based on a provision
matrix. The provision matrix is prepared based on historically observed default rates over the expected life of trade
receivables and is adjusted for forward-looking estimates. At each reporting date, the historically observed default
rates and changes in the forward-looking estimates are updated. Accordingly, loss allowances on trade receivables
are measured using provision matrix at an amount equal to life time expected losses i.e. expected cash shortfall.

Credit impaired

For expected credit loss as at each reporting date the Company assesses position for the assets for which credit
risk has not significantly increased from initial recognition, assets for which credit risk has increased significantly
but are not credit impaired and for assets for which credit risk has increased significantly and are credit impaired.
The Company assesses detrimental impacts on the estimated future cash flows of the financial asset including
loans, receivables and other assets. Based on the assessment of the observable data relating to significant financial
difficulty and creditworthiness of the counterparties, the management believes that there are no financial assets
which are credit impaired except as disclosed in the notes to the financial statements.

(ii) Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time
or at reasonable price. Prudent liquidity risk management implies maintaining sufficient cash and marketable
securities and the availability of funding through an adequate amount of credit facilities to meet obligations
when due. The Company's treasury team is responsible for liquidity, funding as well as settlement management.
In addition, processes and policies related to such risks are overseen by senior management. Management monitors
the Company's liquidity position through rolling forecasts on the basis of expected cash flows. The Company has
investments in short term liquid funds and marketable government securities which can be redeemed at a very short
notice and hence carry negligible liquidity risk.

Foreign currency risk

Foreign currency risk is the risk of impact related to fair value or future cash flows of an exposure in foreign currency,
which fluctuate due to change in foreign exchange rates. The Company's exposure to the risk of changes in foreign
exchange rates primarily relate to import of raw materials, fuels and capital items. Based on sensitivity analysis, the
Company has well defined forex exposure threshold limit approved by Board of Directors, beyond which all forex
exposure are fully hedged.

Commodity price risk

Commodity price risk for the Company is mainly related to fluctuations in coal and pet coke prices linked to various
external factors, which can affect the production cost of the Company. Since the energy costs is one of the primary
costs drivers, any fluctuation in fuel prices can lead to variability in operating margin. To manage this risk, the
Company take following steps:

1. Optimising the fuel mix, pursue longer term and fixed contracts where considered necessary.

2. Consistent efforts to reduce the cost of power and fuel by using both domestic and international coal and petcoke.

3. Use of alternative Fuel and Raw Materials (AFR) and enhancing the utilisation of renewable power including
its onsite and offsite solar, wind, hydro power and Waste Heat Recovery System (WHRS).

Additionally, processes and policies related to such risks are reviewed and controlled by senior management and
fuel requirements are monitored by the central procurement team.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to
changes in market interest rates. The Company's exposure to the interest rate risk arises primarily from security
deposit from dealers. The Company has not used any interest rate derivatives.

Note 54. Capital management

a) The Company's objectives when managing capital are to maximise shareholders value through an efficient allocation
of capital towards expansion of business, optimisation of working capital requirements, expansion of manufacturing
facilities (including through investments in / acquisition of subsidiaries ) and deployment of balance surplus funds
on the back of an effective portfolio management of funds within a well defined risk management framework.

b) The management of the Company reviews the capital structure of the Company on regular basis to optimise cost of
capital. As part of this review, the Board considers the cost of capital and the risks associated with the movement
in the working capital.

c) For the purposes of the Company's capital management, capital includes issued capital, security premium and all
other equity reserves attributable to the equity holders.

As stated in the below table, the Company is a debt free company with no borrowings. The Company is not subject
to any externally imposed capital requirements.

Proposed dividends on equity shares:

Final dividend proposed for the year ended March 31, 2025 I 7.50 per share ( For the year ended March 31, 2024 I
7.50 per share).

Proposed dividends on equity shares are subject to approval at the annual general meeting and are not recognised
as a liability.

Note 56:

The Competition Commission of India ("CCI”) initiated an investigation against cement companies in India including the
Company regarding alleged anti-competitive behaviour and conducted search and seizure operations in December 2020
against few companies. The Director General (DG) of CCI in January 2021 sought information from the Company and the
information sought was provided. In the previous year, CCI had sent the investigation report of the DG to the Company
and directed the Company to file their suggestions / objections to the report. Company had submitted its responses and
the matter is pending for hearing before CCI. The Company is of the firm view that it has acted and continues to act in
compliance with competition laws. The Company believes that this does not have any impact on the financial statements.

Note 57: Exceptional items represent -

a) During the year ended March 31, 2025, in the matter relating to arbitration claim initiated by certain parties
("Claimants”) on the Company for termination (in the earlier years) of Cement Purchase Agreement ("CPA”) dated
September 12, 2012 read with its Addendum dated October 15, 2012 and Memorandum of Understanding dated
September, 2012, for long term contract for purchase of cement by the Company by setting up two Cement Grinding
Units, the Company and Claimants have amicably and mutually settled all their pending disputes before the Arbitral
Tribunal as per Tribunal order dated February 20, 2025.

Before the Tribunal Order dated February 20, 2025, the Claimants and the Company have entered into
arrangement to settle the subsisting disputes including claims and counter claims between the parties and
Company. The Company has settled the Claimants' claim by paying I 27 crore, towards disputes / claims.
The arbitration amount paid to settle the dispute has been disclosed as an exceptional item in the Standalone
Statement of Profit and Loss for the year.

b) As at year end, the Company has assessed the recoverable amounts of its certain Cement Plants which are non
operational, over their useful lives based on the Cash Generating Units (""CGUs"") identified, as required under Ind AS
36, Impairment of Assets on the basis of their Value in Use by estimating the future cash inflows over the estimated
useful life of such Cement Plants.

Basis such assessment, the management has identified carrying value of property, plant and equipment and right of
use assets (tangible assets) of non-operational clinker manufacturing units at Wadi-1, Bargarh and Chaibasa, being
impaired, based on unviable future business prospects and economic viability due to higher cost of manufacturing,
shortage of raw material etc. The Company has carried out a review of the recoverable amount of the tangible
assets used in clinker manufacturing facility at abovementioned three plants. The recoverable amount from such
tangible assets is assessed to be lower than it's carrying amount and consequently an impairment loss of I 207.28
crore (including impairment loss on right of use assets of I 23.92 crore) has been recognised and disclosed as an
exceptional item in the Standalone Statement of Profit and Loss for the year.

c) The Company had entered into the Memorandum of Understanding ("MoU”) with Camrose Realtors Private Limited,
a related party to sell it's surplus land at Thane on "As is where is basis” (Held For Sale) on April 9, 2024 for a
consideration of 1 385 crore subject to fulfilment of certain condition precedents including regulatory approvals.
During the year ended March 31,2025, the Company has concluded the sale of land by entering into Conveyance deed
dated March 25, 2025, after necessary approvals were received from the various government authorities. The land
has been sold at an agreed consideration of 1 385 crore and sale consideration will be realised within six months
period of Conveyance deed as per the MoU. The resultant net gain on disposal of Property, Plant and Equipment of
I 369.01 crore is disclosed as exceptional item in the Standalone Statement of Profit and Loss for the year.

Note 58:

The code on Social Security, 2020 ('Code') relating to employee benefits during employment and post employment benefits
received Presidential assent in September 2020. The Code has been published in the Gazette of India. Certain sections of
the Code came into effect on May 03, 2023. However, the final rules/interpretation have not yet been issued. The Company
will assess the impact of the Code when the final rules/interpretation comes into effect and will record any related impact.

Note 59: Acquisition of Companies

a) The Company has acquired remaining 55% of the voting share capital of Asian Concretes and Cements Private
Limited ("ACCPL') along with its wholly-owned subsidiary Asian Fine Cements Private Limited ("AFCPL') for a
cash consideration of 1422.63 crore. The Company has obtained control over ACCPL and AFCPL on January 8,
2024 ("acquisition date”) and accordingly the investment in ACCPL was classified as investment in subsidiaries.
Post acquisition date, the Company has received 1 1.56 towards indemnification as per share purchase agreement.

b) During the year ended March 31 2025, the Company's Subsidiary, ACC Mineral Resources Limited ("AMRL”) has
entered and executed a Share Purchase Agreements (SPAs) dated February 22, 2025 with the shareholders' of Akkay
Infra Private Limited; Anantroop Infra Private Limited; Eqacre Realtors Private Limited; Foresite Realtors Private
Limited; Krutant Infra Private Limited; Kshobh Realtors Private Limited; Prajag Infra Private Limited; Satyamedha
Realtors Private Limited; Trigrow Infra Private Limited; Varang Realtors Private Limited; Victorlane Projects Private
Limited; Vihay Realtors Private Limited; Vrushak Realtors Private Limited; Peerlytics Projects Private Limited and
SPA dated March 11, 2025 with the shareholders' of West Peak Realtors Private Limited for acquiring 100% voting
share capital of these fifteen companies for cash a consideration of 1 298.61 crore and AMRL has also provided
funds through inter corporate deposits of 1 380.57 crore to these Companies. All these companies hold certain land
parcels which are proposed to be developed for setting-up manufacturing facilities and certain land parcels have
mining rights which are going to be developed as per the Company's future expansion plans.

AMRL has completed the acquisition of 13 Companies on February 27, 2025, 1 Company on February 28, 2025 and 1
Company on March 13, 2025 respectively. For the purpose of above acquisitions, the Company has invested in 0.01%
Optionally Convertible Debentures (OCDs) of 1 10 each of AMRL amounting to 1 636 crore during the year ended
March 31, 2025.

Note 60:

During the financial year 2022-23, a short seller report ("SSR”) was published in which certain allegations were made
on some of the Adani Group Companies. In this regard, certain writ petitions were filed with the Hon'ble Supreme
Court ("SC”) seeking independent investigation of the allegations in the SSR and the Securities and Exchange Board of
India ("SEBI”) also commenced investigation into the allegations made in the SSR for any violations of applicable SEBI
Regulations. In this regard, during financial year 2023-24, SC appointed expert committee concluded its report finding
no regulatory failure, in respect of applicable laws and regulations and SC by its order dated January 03, 2024, disposed
off all matters of appeal relating to the allegations in the SSR (including other allegations) in various petitions including
those relating to separate independent investigations. The SEBI also concluded its investigations in twenty-two of the
twenty-four matters during the financial year 2023-24, and during the current year, management believes that balance
two investigations have been concluded based on available information.

a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Company (Ultimate Beneficiaries); or

b) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

7 The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered
or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or
survey or any other relevant provisions of the Income Tax Act, 1961.

8 The Company has not been declared a wilful defaulter by any bank or financial institution or other lender (as defined
under the Companies Act, 2013) or consortium thereof, in accordance with the guidelines on wilful defaulters issued
by the Reserve Bank of India.

9 The Company is in compliance with the number of layers prescribed under clause (87) of section 2 of the Companies
Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017 (as amended).

10 The Company has not given any loans or advances in the nature of loans to promoters, directors, KMPs and/ or related
parties (as defined under Companies Act, 2013), either severally or jointly with any other person, that are repayable on
demand, or without specifying any terms or period of repayment.

Note 63: Previous year's figures as disclosed below, have been regrouped and rearranged where necessary to
conform to this year's classification.

The Company has reclassified the cost of royalty on minerals amounting to I 270.33 crore, as Cost of material consumed
from classification under the other expenses. The reclassification of the cost of royalty on minerals has been given effect
from April 01, 2024 and figures for the previous year presented in standalone financial statements have been accordingly
regrouped. This reclassification does not have any impact on Company's financial statements.

Employee payables are reclassified from trade payable to other financial liabilities (current) amounting to I 72.24
crore, for better presentation and does not have any impact to net profits or on financial position presented in the
standalone financial statements. The reclassification of the employee payables has been given effect from year ended
March 2025 and accordingly figures for year ended March 31, 2024 presented in standalone financial statements have
also been regrouped.

Income from Government incentive / grants including tax credits / refunds amounting to I 277.91 crore has been
disclosed separately in these standalone financial statements as "Government Grants including duty credits/refunds”.
The reclassification has been given effect during the year ended March 2025 and accordingly figures for year ended
March 31, 2024 presented in standalone financial statements have also been regrouped. This reclassification does not
have any impact on Company's financial statements.

Note 64: Audit Trail

The Company uses an accounting software for maintaining its books of account which has a feature of recording
audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in
the accounting software except the audit trail feature is enabled, for certain direct changes to SAP application and its
underlying HANA database when using certain privileged / administrative access rights where the process is started
during the year, stabilised and enabled with effect from March 25, 2025. Further, there is no instance of audit trail feature
being tampered with in respect of the accounting software where such feature is enabled.

Additionally, the audit trail of relevant prior years has been preserved for record retention to the extent it was enabled
and recorded in those respective years by the Company as per the statutory requirements for record retention.

Note 65: Figures below the amount of I 50,000 have not been disclosed
Note 66:Events occuring after the Balance Sheet Date

The Company evaluates events and transactions that occur subsequent to the balance sheet date but prior to
approval of the financial statements to determine the necessity for recognition and / or reporting of any of these
events and transactions in the financial statements. As on April 24, 2025, there are no material subsequent events to
be recognized or reported.

As per our report of even date attached For and on behalf of the Board of Directors of ACC Limited,

For S R B C & CO LLP KARAN ADANI VINOD BAHETY

Chartered Accountants Chairman Wholetime Director & Chief Executive Officer

ICAI Firm Registration No. 324982E/E300003 DIN: 03088095 DIN:09192400

per Santosh Agarwal BHAVIK PARIKH RAKESH KUMAR TIWARY

Partner Company Secretary Chief Financial Officer

Membership No. 093669 Membership No. A40719

Ahmedabad Ahmedabad

Date: April 24, 2025 Date: April 24, 2025