3.14 Provisions, Contingent Liabilities and Contingent Assets

3.14.1. Provisions

Provisions are recognized when there is a present obligation (legal
or constructive) as a result of a past event and it is probable that
an outflow of resources embodying economic benefits will be
required to settle the obligation and a reliable estimate can be
made of the amount of the obligation. If the effect of the time value
of money is material, provisions are determined by discounting
the expected future cash flows (representing the best estimate
of the expenditure required to settle the present obligation at the
Balance Sheet date) at a pre-tax rate that reflects current market
assessments of the time value of money and the risks specific
to the liability. The unwinding of the discount is recognized as
finance cost. Provisions are reviewed at each reporting date and
are adjusted to reflect the current best estimate.

• Restoration (including Mine closure), rehabilitation
and decommissioning:

It includes the dismantling and demolition of infrastructure,
the removal of residual materials and the remediation of

disturbed areas for mines. This provision is based on all
regulatory requirements and related estimated cost based
on best available information. Restoration/ Rehabilitation/
Decommissioning costs are provided for in the accounting
period when the obligation arises based on the net present
value of the estimated future costs of restoration to be
incurred and are reviewed at each Balance Sheet date.

• Onerous Contracts:

Present obligations arising under onerous contracts are
recognized and measured as provisions. An onerous
contract is considered to exist when a contract under which
the unavoidable costs of meeting the obligations exceed
the economic benefits expected to be received from it.

3.14.2. Contingent Liabilities

Contingent liability is a possible obligation arising from past
events and the existence of which will be confirmed only by the
occurrence or non-occurrence of one or more uncertain future
events not wholly within the control of the Company or a present
obligation that arises from past events but is not recognized
because it is not possible that an outflow of resources embodying
economic benefit will be required to settle the obligations or
reliable estimate of the amount of the obligations cannot be
made. The Company discloses the existence of contingent
liabilities in Other Notes to financial statements. Claims against
the Company where the possibility of any outflow of resources in
settlement is remote, are not disclosed as contingent liabilities.

3.14.3. Contingent Assets

Contingent assets are not recognized in Financial Statements
since this may result in the recognition of income that may never
be realized. However, when the realisation of income is virtually
certain, then the related asset is not a contingent asset and is
recognized.

3.15 Intangible Assets

3.15.1. Recognition and Measurement

3.15.1.1. Mining Rights and Site Preparation Cost

Mining Rights are initially recognized at cost and
subsequently at cost less accumulated amortization and
accumulated impairment loss, if any.

Acquisition Cost i.e., cost associated with acquisition of
licenses, and rights to explore including related professional
fees, payment towards statutory forestry clearances, as and
when incurred, are treated as addition to the Mining Right.

The stripping cost incurred during the production phase of
a surface mine is recognized as an asset if such cost provides
a benefit in terms of improved access to ore in future periods
and following criteria are met.

• It is probable that the future economic benefits
(improved access to an ore body) associated with the
stripping activity will flow to the entity;

• The entity can identify the componentofan ore body
for which access has been improved; and

• The costs relating to the improved access to that
component can be measured reliably.

The stripping activity asset is subsequently depreciated
on a unit of production basis over the life of the identified
component of the ore body that became more accessible
as a result of the stripping activity and is then stated at
cost less accumulated depreciation and any accumulated
impairment loss, if any. The expenditure which cannot be
specifically identified to have been incurred to access ore
is charged to revenue based on stripping ratio as per the
mining plan.

3.15.1.2. Other Intangible Assets

Software which is not an integral part of related hardware,
is treated as intangible asset and stated at cost on initial
recognition and subsequently measured at cost less
accumulated amortization and accumulated impairment
loss, if any.

Cost comprises the purchase price (net of tax / duty credits
availed wherever applicable) and any directly attributable
cost of bringing the assets to its working condition for its
intended use.

3.15.2. Subsequent Expenditure

Subsequent costs are included in the asset's carrying amount, only
when it is probable that future economic benefits associated with
the cost incurred will flow to the Company and the cost of the
item can be measured reliably. All other expenditure is recognized
in the Statement of Profit and Loss.

3.15.3. Amortization

• Mining Rights including site preparation costs are
amortized on the basis of annual production to the total
estimated mineable reserves. In case the mining rights are
not renewed, the balance related cost will be charged to
revenue in the year of decision of non-renewal.

• Other Intangible assets are amortized over a period of three
years.

• The amortization period and the amortization method are
reviewed at least at the end of each financial year. If the
expected useful life of the assets is significantly different
from previous estimates, the amortization period is changed
accordingly.

3.15.4. Disposal of Assets

An intangible asset is derecognized on disposal, or when no future
economic benefits are expected from its use or disposal. Gains or
losses arising from derecognition of an item of intangible asset are
measured as the difference between the net disposal proceeds
and the carrying amount of such item of intangible asset and are
recognized in the Statement of Profit and Loss when the asset is
derecognized.

3.15.5. Intangible Assets under Development

Intangible Assets under development is stated at cost less
accumulated impairment losses (if any). Cost includes expenses
incurred in connection with development of Intangible Assets in
so far as such expenses relate to the period prior to the getting the
assets ready for use.

3.16 Investment properties

• Investment Property is property (comprising land or
building or both) held to earn rental income or for capital
appreciation or both, but not for sale in ordinary course
of business, use in the production or supply of goods or
services or for administrative purposes.

• Upon initial recognition, an investment property is measured
at cost. Subsequently they are stated in the Balance Sheet
at cost, less accumulated depreciation and accumulated
impairment losses, if any.

• Any gain or loss on disposal of investment property
is determined as the difference between net disposal
proceeds and the carrying amount of the property and is
recognized in the Statement of Profit and Loss.

• The depreciable investment property i.e., buildings, are
depreciated on a straight line method at a rate determined
based on the useful life as provided under Schedule II of the
Act.

• I nvestment properties are derecognized either when they
have been disposed of or no future economic benefit is
expected from their disposal. The net difference between
the net disposal proceeds and the carrying amount of the
asset is recognized in the Statement of Profit and Loss in the
period of derecognition.

• When the use of a property changes from investment
property to owner-occupied (for Company's business
purpose), the property is reclassified as Property, Plant
& Equipment at its carrying amount on the date of
reclassification.

3.17 Biological Assets other than Bearer Plants

Biological Assets other than Bearer Plants are recognized when
the Company controls the asset as a result of past events and it is
probable that future economic benefits associated with the asset
will flow to the entity and the fair value or cost of the asset can be
measured reliably. A Biological Asset other than Bearer Plants is
measured on initial recognition and at the end of each reporting
period at its fair value less cost to sell.

3.18 Non-current assets (or disposal groups) held for sale and
discontinued operations

• Non-current assets (or disposal groups) are classified as held
for sale if their carrying amount will be recovered principally
through a sale transaction rather than through continuing

use and a sale is considered highly probable. They are
measured at the lower of the carrying amount and the fair
value less cost to sell.

• An impairment loss is recognized for any initial or
subsequent write-down of the asset (or disposal group)
to fair value less costs to sell. A gain is recognized for any
subsequent increases in fair value less costs to sell of an
asset (or disposal group), but not in excess of any cumulative
impairment loss previously recognized. A gain or loss not
previously recognized by the date of the sale of the non¬
current asset (or disposal group) is recognized at the date of
de-recognition.

• Non-current assets (including those that are part of a
disposal group) are not depreciated or amortized while they
are classified as held for sale. Non-current assets (or disposal
group) classified as held for sale are presented separately in
the Balance Sheet. Any profit or loss arising from the sale or
remeasurement of discontinued operations is presented as
part of a single line item in Statement of Profit and Loss.

3.19 Operating Segment

The identification of operating segment is consistent with
performance assessment and resource allocation by the Chief
Operating Decision Maker. An operating segment is a component
of the Company that engages in business activities from which
it may earn revenues and incur expenses including revenues
and expenses that relate to transactions with any of the other
components of the Company and for which discrete financial
information is available. Operating segments of the Company
comprises three segments Cement, Jute and Others. All operating
segments' operating results are reviewed regularly by the Chief
Operating Decision Maker to make decisions about resources to
be allocated to the segments and assess their performance.

3.20 Measurement of Fair Values

A number of the Company's accounting policies and disclosures
require the measurement of fair values, for both financial and non¬
financial assets and liabilities.

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 fair value measurement
is based on the presumption that the transaction to sell the asset
or transfer the liability takes place either:

• In the principal market for the asset or liability, or

• In the absence of a principal market, in the most
advantageous market for the asset or liability.

The principal or the most advantageous market must be accessible
by the Company. The fair value of an asset or a liability is measured
using the assumptions that market participants would use when
pricing the asset or liability, assuming that market participants act
in their economic best interest. A fair value measurement of a non¬
financial asset takes into account a market participant's ability to
generate economic benefits by using the asset in its highest and
best use or by selling it to another market participant that would
use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in
the circumstances and for which sufficient data are available to
measure fair value, maximising the use of relevant observable
inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or
disclosed in the financial statements are categorized within the
fair value hierarchy, described as follows, based on the input that
is significant to the fair value measurement as a whole:

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

• Level 2 - Inputs other than quoted prices included within
Level 1, that are observable for the asset or liability, either
directly or indirectly; and

• Level 3 - Inputs which are unobservable inputs for the asset
or liability.

External valuers are involved for valuation of significant assets
and liabilities. Involvement of external valuers is decided by the
management of the Company considering the requirements
of Ind AS and selection criteria include market knowledge,
reputation, independence and whether professional standards
are maintained.

3.21 Earning per shares

Basic Earnings Per Share ("EPS”) is computed by dividing the
net profit / (loss) after tax for the year attributable to the equity
shareholders by the weighted average number of equity shares
outstanding during the year. For the purpose of calculating
diluted earnings per share, net profit / (loss) after tax for the year
attributable to the equity shareholders is divided by the weighted
average number of equity shares which could have been issued
on the conversion of all dilutive potential equity shares.

3.22 Recent Accounting Pronouncements

The Ministry of Corporate Affairs ("MCA”) notifies new standards
or amendments to existing standards under the Companies
(Indian Accounting Standards) Rules from time to time. MCA
has notified amendments to Ind AS 1 - Presentation of Financial
Statements (classification of liabilities as current or non-current,
including liabilities with covenants), Ind AS 12 - Income Taxes
(International Tax Reform - Pillar Two Model Rules), Ind AS 21
- The Effects of Changes in Foreign Exchange Rates (Lack of
Exchangeability), and Ind AS 7 - Statement of Cash Flows and
Ind AS 107 - Financial Instruments: Disclosures (Supplier Finance
Arrangements), effective from 1^st April, 2025. The Company has
reviewed these amendments and based on its evaluation, has
determined that they do not have any impact on the Company's
financial statements. However, pursuant to the adoption of the

amendments to Ind AS 7 and Ind AS 107, the Company has
provided the required disclosures relating to liabilities under
supplier finance arrangements in the notes to the standalone
financial statements.

Standard Issued/ amended but not yet effective

Ministry of Corporate Affairs ("MCA”) has issued Ind AS 118 -
Presentation and Disclosure in Financial Statements, which will
replace Ind AS 1 - Presentation of Financial Statements and is
effective for annual reporting periods beginning on or after 1^st April,
2027. Ind AS 118 introduces revised presentation requirements
in the statement of profit and loss and enhanced disclosure
requirements. The standard is expected to impact presentation
and disclosures but not the recognition and measurement. The
Company is currently evaluating the impact of this standard on
the accompanying financial statements. All other new standards
or amendments that are not yet effective that have been issued
by the MCA are not applicable or material to the Company.

4. SIGNIFICANT JUDGEMENTS AND KEY SOURCES OF
ESTIMATION IN APPLYING ACCOUNTING POLICIES

Information about Significant judgements and Key sources
of estimation made in applying accounting policies that have
the most significant effects on the amounts recognized in the
financial statements is included in the following notes:

• Recognition of Deferred Tax Assets: The extent to
which deferred tax assets can be recognized is based on
an assessment of the probability of the Company's future
taxable income against which the deferred tax assets can
be utilized. In addition, significant judgement is required in
assessing the impact of any legal or economic limits.

• Income Taxes: The Company calculates income tax
expense based on reported income and estimated
exemptions / deduction likely available to the Company.
The Company is continuing with higher income tax rate
option, based on the available outstanding MAT credit
entitlement and different exemptions & deduction enjoyed
by the Company. However, the Company has applied the
lower income tax rates on the deferred tax assets / liabilities
to the extent these are expected to realized or settled in the
future when the Company may be subject to lower tax rate
based on the future financials projections.

• Useful lives of depreciable/ amortisable assets
(tangible and intangible): The Company uses its
technical expertise along with historical and industry trends
for determining the economic life of an asset/component
of an asset. The useful lives are reviewed by management
periodically and revised, if appropriate. In case of a revision,
the unamortized depreciable amount is charged over the
remaining useful life of the assets. In case of certain mining
rights (including freehold mining land) the amortization is
based on the extracted quantity to the total mineral reserve.

• Leases: The Company determines the lease term as the
non-cancellable term of the lease, together with any periods
covered by an option to extend the lease if it is reasonably
certain to be exercized, or any periods covered by an option
to terminate the lease, if it is reasonably certain not to be
exercized. The Company has several lease contracts that
include extension and termination options. The Company
applies judgement in evaluating whether it is reasonably
certain whether or not to exercise the option to renew or
terminate the lease. That is, it considers all relevant factors
that create an economic incentive for it to exercise either the
renewal or termination. After the commencement date, the
Company reassesses the lease term if there is a significant
event or change in circumstances that is within its control
and affects its ability to exercise or not to exercise the option
to renew or to terminate (e.g., construction of significant
leasehold improvements or significant customisation to the
leased asset).

• Defined Benefit Obligation (DBO): Employee benefit
obligations are measured on the basis of actuarial
assumptions which include mortality and withdrawal rates
as well as assumptions concerning future developments
in discount rates, medical cost trends, anticipation of
future salary increases and the inflation rate. The Company
considers that the assumptions used to measure its
obligations are appropriate. However, any changes in these
assumptions may have a material impact on the resulting
calculations.

• Restoration (including Mine closure), rehabilitation
and decommissioning: Estimation of restoration/
rehabilitation/decommissioning costs requires interpretation
of scientific and legal data, in addition to assumptions about
probability of future costs.

• Litigations and Claims: 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. Such accruals are by nature complex and can
take number of years to resolve and can involve estimation
uncertainty. Information about such litigations is provided
in notes to the financial statements.

• Provisions and Contingencies: The assessments
undertaken in recognising provisions and contingencies
have been made in accordance with Indian Accounting
Standards (Ind AS) 37, 'Provisions, Contingent Liabilities
and Contingent Assets'. The evaluation of the likelihood
of the contingent events is applied best judgement by
management regarding the probability of exposure to
potential loss.

• Impairment of Investments: The Company reviews its
carrying value of investments carried at amortized cost
annually, or more frequently when there is indication of
impairment. If recoverable amount is less than its carrying
amount, the impairment loss is accounted for.

• Incentives under the State Industrial Policy (Refer
Note No. 12 of the Financial Statements): 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.

• Allowances for Doubtful Debts: The Company makes
allowances for doubtful debts through appropriate
estimations of irrecoverable amount. The identification of
doubtful debts requires use of judgment and estimates.
Where the expectation is different from the original estimate,
such difference will impact the carrying value of the trade
and other receivables and doubtful debts expenses in the
period in which such estimate has been changed.

• Fair value measurement of financial Instruments:

When the fair values of financial assets and financial
liabilities recorded in the Balance Sheet cannot be measured
based on quoted prices in active markets, their fair value
is measured using valuation techniques including the

Discounted Cash Flow model. The input to these models
are taken from observable markets where possible, but
where this not feasible, a degree of judgement is required in
establishing fair values. Judgements include considerations
of inputs such as liquidity risk, credit risk and volatility.

• Revenue Recognition (Refer Note No. 29 of the
Financial Statements): The Company's contracts with
customers include promises to transfer goods to the
customers. Judgement is required to determine the
transaction price for the contract. The transaction price
could be either a fixed amount of customer consideration
or variable consideration with elements such as discounts,
rebates, etc. The estimated amount of variable consideration
is adjusted in the transaction price only to the extent
that it is highly probable that a significant reversal in the
amount of cumulative revenue recognized will not occur
and is reassessed at the end of each reporting period.
Estimates of discounts and rebates are sensitive to changes
in circumstances and the Company's past experience
regarding returns, discount and rebate entitlements and
may not be representative of customers' actual returns,
discount and rebate entitlements in the future.

• Physical verification of Inventory of Cement Business
(Refer Note No. 14 of the Financial Statements):

Bulk inventory for the Cement Business of the Company
primarily comprises of coal, petcoke, limestone 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.

19.1 Unit Auto Trim Division: Suspension of Operation was declared of the Company's unit Auto Trim Division at Birlapur, West Bengal w.e.f. 18^th
February, 2014. There have been no operations at Chakan Plant, Maharashtra and at Gurgaon Plant, Haryana since August, 2007 and November,
2007 respectively. A resolution was passed by the Board of Directors of the Company on 3^rd May, 2019 for disposal of remaining assets of the Unit
situated at Birlapur (West Bengal), Chakan (Maharashtra) and Gurgaon (Haryana). The Board has also passed resolutions and declared "Closure of
Manufacturing Establishments” for Biralpur Unit and Gurgaon Unit from 30^th July, 2021 and 1^st September, 2022 respectively. Whilst majority of the
plant and machinery have been disposed off in the earlier years, the Company is in the process of disposing off the balance items as well and
expects to complete the process by March, 2027. The assets of the Unit comprising Plant & Machineries are presented within total assets of the
"Other Segment Assets” under Segment Reporting

Non recurring fair value measurements

The fair value of the Plant & Machineries, classified as held for sale, was determined using the sales comparison approach. This is level 2 measurement
as per the fair value hierarchy set out in accounting policies related to fair value measurement. The key inputs under this approach are price of the
similar Plant & Machineries at the same location, condition and age.

20.4 Reconciliation of the number of shares at the beginning and at the end of the year

There has been no change/ movements in number of shares outstanding at the beginning and at the end of the year.

20.5 Terms/ Rights attached to Equity Shares

The Company has only one class of issued shares i.e., Ordinary Shares having par value of ' 10 per share. Each holder of the Ordinary Shares is
entitled to one vote per share and equal right for dividend. The dividend proposed by the Board of Directors is subject to the approval of the
shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the ordinary shareholders
are eligible to receive the remaining assets of the Company after payment of all preferential amounts, in proportion to their shareholding.

20.6 Shareholding Pattern in respect of Holding or Ultimate Holding Company

The Company does not have any Holding Company or Ultimate Holding Company.

21 OTHER EQUITY (REFER STATEMENT OF CHANGE IN EQUITY)

The Description of the nature and purpose of each reserve within equity is as follows:

21.1 Capital Reserve: Capital reserve are mainly the reserve created during business combination for the gain on bargain purchase.

21.2 Debenture Redemption Reserve (DRR): The Company has issued redeemable non-convertible debentures. Accordingly, the Companies (Share
Capital and Debentures) Rules, 2014 (as amended), requires the Company to create DRR out of profits of the Company available for payment of
dividend. DRR is required to be created for an amount which is equal to 25% of the value of debentures issued. However, this requirement is no
more applicable as per the amendment in the Companies (Share capital and Debentures) Rules, 2014. Accordingly, the Company has not made any
new addition in the said reserve and accounted for the reversal of outstanding reserve linked to payment of specific non-convertible debentures.

21.3 General Reserve: General reserve is created out of retained earnings for appropriation purposes.

21.4 Retained Earnings: Retained earnings represents the undistributed profit of the Company.

21.5 Debt Instrument through Other Comprehensive Income: This reserve is created on account of fair valuation of selected debt instruments and
will be transferred to statement of profit and loss on liquidation of respective instruments.

21.6 Effective Portion of Cashflow Hedges: The Company has designated certain hedging instruments as cash flow hedges and any effective
portion of cashflow hedge is maintained in the said reserve. In case the hedging becomes ineffective or instruments settled, the amount will be
transferred to the statement of profit and loss.

21.7 Equity Instrument through Other Comprehensive Income: This reserve is created on account of fair valuation of equity instruments other
than investments in subsidiaries. This will be directly transferred to retained earnings on disposal of respective equity instruments.

21.8 Revaluation Surplus: Revaluation surplus arises on accountoffairvaluation offreehold land.This will be directlytransferredto retained earnings
at the time of sale/disposal/transfer (if any) of the respective portion of freehold land.

39.2 The Government of India, on 20^th September 2019, vide the Taxation Laws (Amendment) Ordinance 2019, inserted a new Section 115BAA in the
Income Tax Act, 1961, which provides an option to a corporate for paying Income Tax at reduced rates as per the provisions/conditions defined in
the said section. The Company is continuing to provide for income tax at old rates, based on the available outstanding MAT credit entitlement and
various exemptions and deductions available to the Company under the Income Tax Act, 1961. As per the assessment made by the management,
the Company will opt for the new tax regime from the next financial year. Accordingly, as on 31^st March, 2026 the Company has re-computed its
deferred tax assets/ liability by using the lower tax rates and reduced the deferred tax liability by ' 30.97 Crores with corresponding credit of ' 26.66
Crores in profit and loss account and ' 4.31 Crores in Other Comprehensive Income. In previous year the Company had applied the lower income
tax rates on the deferred tax assets / liabilities to the extent these are expected to be realized or settled in the future period and accordingly the
Company had reversed deferred tax liability of ' 3.62 Crores. Applicable Indian Statutory Income Tax Rate for both the Fiscal Years 2026 and 2025 is
34.944%.

39.3 During the year, the Company has received demand notices for the earlier years from the Income Tax Department in relation to order of Double
Bench of Hon'ble High Court of Calcutta dated 18^th December, 2023 holding subsidy received as revenue in nature and taxable. Tax expenses
of ' 18.12 Crores has been accounted for on account of above demand (Refer Note No.41.1(a)). In addition to above, pursuant to completion of
earlier years Income tax assessments, the Company has (i) accrued Minimum Alternate Tax Credit Entitlement of ' 26.13 Crores, and (ii) reversed
accumulated provision for tax amounting to ' 0.19 Crore.

39.4 The Finance (No.2) Act, 2024 (FA 2024) increased the effective tax rate with respect to long term capital gain on sale of listed shares from 11.65% to
14.56%. Further, FA 2024 withdrew indexation benefit on long term capital gain on sale of land and reduced the effective tax rate from 23.30% with
indexation to 14.56% (without indexation). On account of these amendments, in previous year, the Company had reversed deferred tax liability of
' 67.93 Crores and credited Other Comprehensive Income.

39.5 There is no income or transaction which has not been disclosed or recorded in the books of accounts which has been surrendered or disclosed as
income in the tax assessment during the year 31^st March, 2026 and 31^st March, 2025.

Note:

(a) For A.Y. 2000-01 to 2006-07, Company had claimed the Sales Tax Subsidy amounting to ' 68.80 Crores as exempted income being capital in nature.
Though the Assessing Officer rejected the claim, the Company had obtained favourable decisions from the CIT(A) and the Income Tax Appellate
Tribunal (ITAT). However, on further appeal by the Income Tax Department before the Hon'ble High Court of Calcutta, the double bench of Hon'ble
High Court of Calcutta vide order dated 18^th December, 2023 held sales tax subsidy to be revenue in nature. Pending receipt of appeal effect of
the Order, the Company had estimated impact of income tax on account of the above matter as ' 24.06 Crores and considered contingent liability
as on 31^st March, 2025. The Company has been legally advised that its claim, the Sales Tax Subsidy is capital in nature and hence the Company
does not foresee any probable outflow in the said matter. Considering the merits of the case, the Company has filed a special leave petition before
the Hon'ble Supreme Court, which was admitted on 8^th April, 2024, which is pending as on reporting date. Further, during the year, Company has

received the demand notices for the same from the Income Tax Departments and as a matter of prudence, tax expenses of ' 18.12 Crores and
interest expenses of ' 2.20 Crores has been accounted in the year ended 31^st March, 2026 on account of the above.

(b) I n earlier year, the Company has received notice from the NTPC Limited (NTPC) for a claim of ' 35.26 crores plus interest on account of levy of
higher price for which the Company is not in agreement, in terms of the agreement with NTPC for lifting of fly ash. The Company has also made
counter-claim of ' 24.38 crores plus interest citing various grounds.

The matter has been referred for Arbitral Award and the proceeding of Arbitration has been finally concluded on 23^rd March, 2025. On 19^th July,
2025 arbitration has been awarded in the favour of the Company with a direction to NTPC to pay ' 18.36 Crores along with interest. The NTPC has
challenged the arbitral award before the Commercial Court. The matter is pending before the Court. Hence, pending final order, the difference of
the claim ' 10.88 Crores (' 35.26 Crores less ' 24.38 Crores) has been considered as contingent liability.

41.2 The Company is subject to electricity tariff notified by the relevant authorities. As there is substantial time lag in notifying such changes, the
difference, if any, is accounted for at the time of notification of changes in tariff.

41.3 I n respect of the matters in Note No. 41.1 to 41.2, future cash outflows are determinable only on receipt of judgements/decisions pending at
various forums/ authorities. Furthermore, there is no possibility of any reimbursements to be made to the Company from any third party.

46 LEASES

46.1 As Lessee

46.1.1 The Company's significant leasing arrangements are in respect of leases for premises (residential, manufacturing facilities, office, stores, godown,
etc.) and plant and machinery. These leasing arrangements which are cancellable ranging between 11 months and 99 years generally, or longer,
and are usually renewable by mutual consent on mutually agreeable terms.

46.1.2 The following is the summary of practical expedients used for lease accounting:

(a) Applied a single discount rate to a portfolio of leases of similar assets in similar economic environment with a similar end date.

(b) Applied the exemption not to recognise right of use assets and liabilities for leases with less than 12 months of lease term and low value of
assets.

(c) Used hindsight in determining the lease term whether the contract contained options to extend or terminate the lease.

46.1.7 During the current year as well as previous year, the Company has not entered into any non-cash investing activities.

46.1.8 The weighted average incremental borrowing rate applied to lease liabilities for leasehold land is 8.00% and for plant and machinery is 7.78%,
7.85% and 11.77%.

46.1.9 The Company does not face a significant liquidity risk with regards to its lease liabilities as the current assets are sufficient to meet the obligations
related to lease liabilities as and when they fall due.

46.2 As Lessor

46.2.1 The Company leased out its investment property on operating lease basis on cancellable basis. Rental income earned and direct operating
expenses incurred on property letting on lease has been disclosed in Note No 6.

c) Demographic risk: This is the risk of variability of results due to unsystematic nature of decrements that includes mortality, withdrawal,
disability and retirement. The effect of these decrements on the defined benefits obligations is not straight forward and depends on the
combination of salary increase, discount rate and vesting criteria. It is important not to overstate withdrawals because in the financial analysis
the retirement benefit of the short career employee typically costs less per year as compared to a long service employee.

48.2 Defined Benefit Plan:

The following are the types of defined benefit plans:

48.2.1 Gratuity Plan

Every employee who has completed five years or more of service is entitled to gratuity on terms not less favourable than the provisions of the
Payment of Gratuity Act, 1972. The present value of defined obligation and related current cost are measured using the Projected Unit Credit
Method with actuarial valuation being carried out at Balance Sheet date. Further Refer Note No. 48.2.18 below.

48.2.2 Pension Plan

Pension is payable to certain categories of employees who are eligible under the Company's Pension Scheme.

48.2.3 Provident Fund

Provident Fund (other than government administered) as per the provisions of the Employees Provident Funds and Miscellaneous Provisions
Act, 1952.

48.2.4 Risk Exposure
Defined Benefit Plans

Defined benefit plans expose the Company to actuarial risks such as Interest Rate Risk, Salary Risk and Demographic Risk.

a) Interest rate risk: The defined benefit obligation calculated uses a discount rate based on government bonds. If the bond yield falls, the
defined benefit obligation will tend to increase.

b) Salary risk: Higher than expected increases in salary will increase the defined benefit obligation.

Although the analysis does not take account of the full distribution of cash flows expected under the plan, it does provide an approximation
of the sensitivity of the assumptions shown.

48.2.18 New Labour Codes

The Ministry of Labour & Employment (MoLE), Government of India has announced the implementation of four Labour Codes viz the Code on
Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020 and the Occupational Safety, Health and working Conditions
Code, 2020 effective 21^st November, 2025. The Company has assessed the impact of the changes and accrued the incremental impact towards
Gratuity and Compensated absences of ' 21.22 Crores and disclosed as an "Exceptional Item” in the Statement of Profit and Loss. The Company
continues to monitor the finalisation of Central/ State Rules and clarifications from the Government on other aspects of the Labour Code and
would provide appropriate accounting effect on the basis of such developments as needed.

48.2.19 Provident Fund

Provident fund for certain eligible employees is managed by the Company through the various Provident Fund Trusts, namely "M P Birla Group
Provident Fund Institution”, "Satna Cement Works Employees' Provident Fund Trust”, ”Birla Cement Works Staff Provident Fund Trust”, "Birla Jute
Mills Workers' Provident Fund Trust”, "Soorah Jute Mills Employees' Provident Fund Trust”, "Durgapur Cement Works Employees' Provident Fund
Trust” and ”Birla Industries Provident Fund”, in line with the Provident Fund and Miscellaneous Provisions Act, 1952. The plan guarantees interest
at the rate notified by the Provident Fund Authorities. The contribution by the employer and employee together with the interest accumulated
thereon are payable to employees at the time of their separation from the Company or retirement, whichever is earlier. The benefits vest
immediately on rendering of the services by the employee.

51.1 The Ministry of Coal had allocated Bikram and Brahampuri Coal Blocks in the state of Madhya Pradesh through E-Auction process vide CMDPA
(Coal Mine Development and Production Agreement) dated 18^th December, 2019 and Vesting Order dated 10^th February, 2020. Further, Ministry of
Coal also allocated Markibarka Coal Block in the State of Madhya Pradesh vide CMDPA (Coal Mine Development and Production Agreement) dated
17^th October, 2022 and Vesting Order dated 17^th January, 2023. Till 31^st March, 2026 and 31^st March, 2025, the Company has spent ' 130.13 Crores
and ' 109.32 Crores respectively and shown under Capital Work-In-Progress.

I n earlier years, the Company has received show cause notice from Ministry of Coal (MoC) against delay in commissioning of Bikram Coal Block.
The Company has duly responded to the show cause notice stating the facts for delay in commissioning i.e. mainly on account of the events not in
control of the Company. During the year, Company has received the Order for Grant of Mining Lease in respect of Bikram Coal Block on 6^th August
2025. The Company is in process to develop the Bikram Coal block for extraction of Coal.

Similarly, the Company has also received show cause notice from MoC against delay in commissioning of Brahampuri Coal Block. The Company
has duly responded to the show cause notice stating that there is drastic reduction in extractable reserves, which were not accepted by the MoC.
Consequent to this, the Company has filed the writ petition before the Hon'ble High Court of Madhya Pradesh and Hon'ble High Court passed an
interim order, directing the MoC to not take coercive steps and to file a reply. Meanwhile, during the ordinary course of review meetings with the
MoC, the Company has submitted bona fide updates and communications for consideration of the issues arising from the reduced extractable
reserves. However, the MoC erroneously and in violation of the subsisting interim order of the Hon'ble High Court construed such bona fide
communication as a "surrender request” and passed termination order dated 18^th December, 2025 by invoking the termination provisions under
the CMDPA, including consequences relating to forfeiture of Performance Bank Guarantee. Aggrieved by the aforesaid action, the Company has
filed an Interlocutory Application in the pending writ petition before the Hon'ble High Court of Madhya Pradesh, challenging the termination order
and the consequential directions issued therein. The Hon'ble Court, vide their order dated 22^nd December, 2025, directed that no action shall be
taken for encashment of the Performance Bank Guarantee, till the next date of hearing, which remain pending.

Further, in earlier years, the Company has also received show cause notices from Ministry of Coal (MoC) for non-submission of mining plan for
Markibarka Coal Block. The Company has duly responded to the show cause notice stating the facts for non-submission of revised mining plan
(mainly on account of discrepancy in the government data with respect to geographical boundaries of the area granted and the area for which
clearances vested in the Company), which were not accepted by the MoC. Consequent to this, the Company has filed writ petitions before the
Hon'ble High Court of Jabalpur, which are pending at reporting date.

I n the considered view of the Management, the Company has strong grounds for favourable verdicts that would lead to extension of original
commissioning dates, cancellation of termination order and acceptance of the mining plan. Hence, no provision for impairment is considered
necessary at this stage.

51.2 During the year, the Company has been declared as 'Preferred Bidder' for grant of mining lease and has been allotted two Limestone Block viz.
'Tadas Limestone Block - II' in the District of Nagaur (Rajasthan) and 'Gourum Khan ki Dhani (South)' in the District of Jaisalmer (Rajasthan). The
Department of Mines and Petroleum of State Government of Rajasthan, has issued Letter of Intent 'LOI' in respect of Tadas Limestone Block - II.
Further, Department of Mines and Petroleum of State Government of Rajasthan vide its Order dated 31^st December, 2025 has rejected the bid
submitted by the Company, in respect of Gourum Khan ki Dhani (South) limestone block, on the ground that the final price submitted by the
Company was found to be comparatively lower than the bids received in auctions of other similar limestone blocks in the region. The Company has
filed writ petition before the Hon'ble High Court of Rajasthan at Jodhpur, challenging the said rejection order, which is pending at reporting date.
Upto 31^st March, 2026, the Company has made payment of ' 6.99 Crores and ' 11.66 Crores in respect of Tadas Limestone Block - II and Gourum
Khan ki Dhani (South), respectively to the State Government and the same has been showing as Capital Advances under the head of 'Other Non¬
Current Assets'.

52.1 As a policy, the Company annually assesses the impairment of property plant and equipment (PPE) and other non-current assets by comparing
the carrying value of PPE and other non-current assets with its fair value. In case the fair value is less than the carrying value an impairment charge
is created. Management has concluded that there is no impairment of PPE and other assets during the current year and in previous year.

52.2 Certain Trade Receivables, Loans & Advances and Trade Payables are subject to confirmation. In the opinion of the management, the value ofTrade
Receivables and Loans & Advances on realisation in the ordinary course of business, will not be less than the value at which these are stated in the
Balance Sheet.

53.1 The business operations in Company's Unit Soorah Jute Mills were not carried out since 29^th March, 2004, as the process of shifting the Unit from
Narkeldanga (Kolkata) to Birlapur (South 24 Parganas) is in abeyance.

53.2 The Company's Unit Birla Vinoleum at Birlapur, is under Suspension of Operation since 18^th February, 2014. Further, the Board had also passed
resolution and declared "Closure of Manufacturing Establishment” from 20^th February, 2025.

53.3 In the mining matter of Company's unit Chanderia, the Hon'ble Supreme Court vide its Order dated 12^th January, 2024 inter alia directed that a radius
of five kilometers from the compound wall of the Fort shall not be subjected to mining by blasting or use of explosives for mining of any minerals.
The manual/mechanical mining operations permitted within a radius of five kilometers are allowed to be continued. The Hon'ble Supreme Court
further directed the Chairman of the Indian Institute of Technology (Indian School of Mines), Dhanbad, Jharkhand [IIT (ISM)-Dhanbad] to constitute
a team of multi-disciplinary experts, within two weeks from the receipt of a copy of the Order to undertake the study of environmental pollution

and impact on all structures in the Chittorgarh Fort from the blasting operations beyond a five kilometer radius. The team of multi-disciplinary
experts completed the study as directed by the Hon'ble Court and submitted its Report to the Hon'ble Supreme Court of India on 29^th September,
2024. The e-copies of the report were supplied to all the parties including State of Rajasthan. A comprehensive synopsis of all the technical reports
prepared by different bodies during the course of hearing has been submitted to the Hon'ble Supreme Court by the Company. On 5^th May, 2026,
Hon'ble Supreme Court has directed the summary and synopsis may be also circulated with the counsel for the opposite parties. The matter is at
final hearing stage.

54 FAIR VALUE MEASUREMENT:

The fair value of the financial assets and liabilities are included at the amount 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.

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

54.1.1 The equity shares, bonds, non-convertible debentures and government securities being listed, the fair value has been taken at the market rates
of the same as on the reporting dates. They are classified as Level 1 fair values in fair value hierarchy. Fair value of mutual funds are based on net
assets value as on the reporting dates and classified as Level 1 fair values in fair value hierarchy. Fair value of investments in unquoted equity
instruments are based on the Net Assets Book Value of the investee companies and same is classified as Level 3 fair values in fair value hierarchy.

54.1.2 The fair values of non-current borrowings are based on the discounted cash flows using a current borrowing rate. Debentures are classified as
Level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including own credit risks, which was assessed as on the
balance sheet date to be insignificant.

54.1.3 The management has assessed that the fair values of cash and cash equivalents, other bank balances, trade receivables, other current financial
assets (except derivative financial instruments), trade payables, short term borrowings and other current financial liabilities (except derivative
financial instruments) approximates their carrying amounts largely due to the short-term maturities of these instruments. The management has
assessed that the fair value of floating rate instruments approximates their carrying value.

54.2 Fair Value Hierarchy

The following are the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognized and
measured at fair value and (b) measured at amortized cost and for which fair value are disclosed in the Standalone Financial Statements. To provide
an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three
levels of fair value measurement as prescribed under the Ind AS 113 "Fair Value Measurement”. An explanation of each level follows underneath the
tables.

55 FINANCIAL RISK MANAGEMENT

The Company has a Risk Management Policy which covers risk associated with the financial assets and liabilities. The Risk Management Policy is
approved by the Board of Directors. The different types of risk impacting the fair value of financial instruments are as below:

55.1 Credit Risk

The credit risk is the risk of financial loss arising from counter party failing to discharge an obligation. The Company is exposed to credit risk from
its operating activities (primarily trade receivables and subsidies/incentive receivables) and from its financing activities, including deposits placed
with banks and financial institutions and other financial instruments.

55.1.1 Trade Receivables

The credit risk is controlled by analysing credit limits and credit worthiness of customers on continuous basis to whom the credit has been
granted, obtaining necessary approvals for credit and taking security deposits from trade channels. Summary of the Company's exposure to
credit risk by age of the outstanding from various customers is as follows:

55.1.2 Subsidies/ incentive receivable

The Company is entitled to receive incentive in the form of Industrial Promotion Assistance (IPA) under the "West Bengal Incentive Scheme, 2000”
(WBIS 2000) in relation to the Cement manufacturing Unit "Durga Hi-Tech Cement” (DHTC) and under "West Bengal State Support for Industries,
Scheme, 2008” (WBSS 2008) for Unit "Durgapur Cement Works” (DCW), both located at Durgapur. The gross outstanding claim balance as on
31^st March, 2026 is ' 138.58 Crores and ' 28.58 Crores respectively.

The Hon'ble Calcutta High Court vide its order dated 22^nd September, 2022 had directed the State Government to pay the amount of IPA of
' 55.66 Crores in respect of DHTC, which was already sanctioned to the Company by "West Bengal Industrial Development Corporation Ltd”
(WBIDC) (for the years 2010-11 to 2012-13) within four weeks from the date of the Order and to dispose of the representation made by the Company
(for balance amount of incentive relating to the years 2013-14 to part of 2015-16) within six weeks from the date of the Order. Hon'ble Division
Bench of Calcutta High Court vide its order dated 9^th April, 2024 dismissed the appeal filed by the State Government against the above order and
reiterated the directions. Special Leave Petition (SLP) filed by the State Government against the order of the Division Bench was also dismissed by
the Hon'ble Supreme Court on 23^rd September, 2024.

In the meanwhile, the West Bengal Legislature enacted the "Revocation of West Bengal Incentive Scheme and Obligations in the Nature of Grant
and Scheme Act, 2025”, (Revocation Act) effective from 2^nd April, 2025 rescinding, revoking and discontinuing the various incentive schemes
sanctioned by the State Government including WBIS 2000 and WBSS 2008, retrospectively.

The Company, on the basis of legal advice, has filed a writ petition before the Hon'ble High Court at Calcutta challenging the legal validity and
retrospective applicability of the Revocation Act. As a matter of abundant caution, based on its assessment of the expected time for recovery of
the incentive, a provision of ' 69.29 Crores (including additional provision of ' 35.68 Crores made in current year and charged as an "Exceptional
Item” in the Statement of Profit and Loss) for DHTC claim and ' 28.58 Crores (including provision of ' 13.36 Crores made in previous year and
charged in the Statement of Profit and Loss) for DCW Claim, on account of time value of money based on the expected credit loss method, is
being carried as on 31^st March, 2026.

55.2 Liquidity Risk

The Company determines its liquidity requirement in the short, medium and long term. This is done by drawings up cash forecast for short term
and long term needs.

The Company manages its liquidity risk in a manner so as to meet its normal financial obligations without any significant delay or stress. Such
risk is managed through ensuring operational cash flow while at the same time maintaining adequate cash and cash equivalents position. The
management has arranged for diversified funding sources and adopted a policy of managing assets with liquidity monitoring future cash flow
and liquidity on a regular basis. Surplus funds not immediately required are invested in certain mutual funds, bonds, NCDs and fixed deposit which
provide flexibility to liquidate. Besides, it generally has certain undrawn credit facilities which can be assessed as and when required; such credit
facilities are reviewed at regular basis.

55.3.3 Interest Rate Risk

The Company is exposed to risk due to interest rate fluctuation on long term borrowings. Such borrowings are based on fixed as well as floating
interest rate. Interest rate risk is determined by current market interest rates, projected debt servicing capability and view on future interest rate.
Such interest rate risk is actively evaluated and is managed through portfolio diversification and exercise of prepayment/refinancing options where
considered necessary.

The Company is also exposed to interest rate risk on surplus funds parked in fixed deposits and investments viz. mutual funds, bonds. To manage
such risks, such investments are done mainly for short durations, in line with the expected business requirements for such funds.

57 GOVERNMENT GRANTS DURING THE YEAR COMPRISING INCENTIVE AND SUBSIDIES INCLUDE:

57.1 Tax Incentive and Electricity Duty Exemption for capital investments under various State Investment Promotion Schemes of ' 11.45 Crores (Previous
Year ' 3.12 Crores).

57.2 Amortization of the deferred revenue of ' 3.21 Crores (Previous Year ' 3.05 Crores) arising due to difference between the fair value & nominal value
of interest free loan granted under State Investment Promotion Scheme.

57.3 Amortization of the deferred revenue of ' 0.10 Crore (Previous Year ' 0.10 Crore) on account of investment in plant & machineries under various
State Investment Promotion Schemes.

57.4 Renewable energy certificates for generation of power from solar power plant under Central Electricity Regulatory Commission (Terms and
Conditions for Recognition and Issuance of Renewable Energy Certificate for Renewable Energy Generation) Regulations, 2010 of ' 0.37 Crore
(Previous Year ' 0.15 Crore).

57.5 The Company has also recognized income from export benefits of ' 2.10 Crores (Previous Year ' 1.44 Crores).

59.2 Compliance with number of layers of companies:

The Company has complied 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.

59.3 Loans or Advances to Promoters, Directors, KMPs and the related parties

The Company has not given any loan or advance in the nature of loan to promoters, directors, KMPs and the related parties (as defined under
the Act), either severally or jointly with any other person during the year ended 31^st March, 2026 and the year ended 31^st March, 2025 except as
disclosed in Note No. 11.

59.4 Utilisation of Borrowed Funds and Share Premium

The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any
other persons or entities including foreign entities (intermediaries) with the understanding that the Intermediaries shall directly or indirectly lend
or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (ultimate beneficiaries) or provided any
guarantee, security or the like or on behalf of the Ultimate Beneficiaries.

The Company has not received any fund from any persons or entities, including foreign entities (funding party) with the understanding that the
Company shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the funding
party (ultimate beneficiaries) or provided any guarantee, security or the like or on behalf of the Ultimate Beneficiaries.

61.5 Terms and Conditions of transactions with Related Parties:

All Related Party Transactions are net off taxes and duties. The sales to and purchases from related party are made in the normal course of business
and on terms equivalent to those that prevail in arm's length transactions. The Loans and Advances given to related parties are on terms equivalent
to those that prevail in arm's length transactions. Outstanding balances at the year end are unsecured and settlement occurs in cash, the Company
has recorded the receivable relating to amount due from related parties net of impairment (if any). This assessment is undertaken at each financial
year through examining the financial position of the related parties and the market in which the related party operates.

62 The Company had investment in AMP Solar Clean Power Private Limited ('AMP') by way of purchase of 2,54,946 fully paid up equity shares having
face value of ' 10 each, amounting of ' 0.25 Crore (7.80% holding in AMP) and in 22,945 compulsorily convertible debentures having face value
of ' 1,000 each, amounting of ' 2.29 Crores under Share Purchase, Subscription and Shareholders Agreement. Further, the Company had entered
into a long-term power purchase agreement ('PPA') with the AMP which is engaged in the business of generating and sale of solar power. The PPA
has a lock-in period of 15 years wherein the Company (alongwith the subsidiary company) is required to purchase the entire contracted power
capacity from the said plant.

The investment in equity shares in AMP together with the Subsidiary Company is 26%. Considering the substance of the transactions, in the
opinion of the management, it was not considered as a related party under Ind AS 24/28. Accordingly, the investment in equity shares and
compulsorily convertible debentures was recognized at amortized cost under "Deposits” at ' 0.43 Crore as per the provision of Ind AS 109 and
the difference between amortized cost and investment value of ' 2.11 Crores was considered for valuation of "Right of Use Assets- Plant and
Machinery”. Taking into consideration the terms and conditions of PPA, it was considered that the arrangement in respect of long term power
purchase agreement satisfies all the conditions of the lease as per IND AS 116. Consequently, Right of Use Assets and Lease Liabilities were
recognized.

63 During the year, the Company has invested in 57,12,121 unquoted equity shares of CGE II Hybrid Energy Private Limited amounting to ' 5.71
Crores, towards compliance with applicable laws related to solar energy. As the Company does not bear any risk or receive any reward from this
investment, the present value of the amount invested for the three-year lock-in period has been calculated and disclosed as security deposit. The
balance is carried as prepaid expenses under Other Assets in the Financial Statements.

64 Previous year figures have been regrouped/ rearranged/ reclassified wherever necessary. Further, there are no material regroupings/ reclassifications
during the year.