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 realised. 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 component of an 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 derecognised 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 recognised
in the Statement of Profit and Loss when the asset
is derecognised.

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.

• Investment 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 categorised 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 Standard Issued/ amended but not yet
effective

Ministry of Corporate Affairs (“MCA”) notifies
new standards or amendments to the existing
standards under Companies (Indian Accounting
Standards) Rules as issued from time to time.
The Ministry of Corporate Affairs vide notification
dated 9^th September, 2024 and 28^th September,
2024 notified the Companies (Indian Accounting
Standards) Second Amendment Rules, 2024 and
Companies (Indian Accounting Standards) Third
Amendment Rules, 2024, respectively, which
amended/ notified certain accounting standards
(see below), and are effective for annual reporting
periods beginning on or after April 01, 2024:

- Insurance contracts - Ind AS 117; and

- Lease Liability in Sale and Leaseback —
Amendments to Ind AS 116

These amendments did not have any material
impact on the amounts recognised in prior periods
and are not expected to significantly affect the
current or future periods.

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 realised 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 unamortised depreciable amount is charged
over the remaining useful life of the assets. In
case of certain mining rights (including freehold
mining land) the amortisation 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 exercised, or any periods covered by an

option to terminate the lease, if it is reasonably
certain not to be exercised. 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.

Notes:

5.1 Gross carrying amount of Freehold Land includes ^ NIL (Previous Year ^ 1.08 Crores) and gross carrying amount
of Building includes ^ 7.13 Crores (Previous Year ^ 7.08 Crores) under Co-ownership basis and also ^ 0.00 Crore
(Previous Year ^ 0.00 Crore) being value of investments in Shares of a Private Limited Company.

5.2 The Company has adopted revaluation model for one class of Property, Plant and Equipment i.e. Freehold
Land and have revalued as on 1^st April, 2017, 1^st April, 2021 and 1^st April, 2023 on the basis of valuation
reports made by independent registered valuer as defined under rule 2 of Companies (Registered Valuers
and Valuation) Rules, 2017. Carrying amount of Freehold Land as on 1^st April, 2024 include revaluation
surplus of ^ 1,054.56 Crores, ^ 153.96 Crores and ^ 9.37 Crores on account of revaluation made on
1^st April, 2017, 1^st April, 2021 and 1^st April, 2023 respectively. In the opinion of the management, as
there is no significant change in the fair value indicators, no fair valuation is done as on 31^st March,2025.
The fair valuation was based on current prices in the active market for similar properties. The main inputs used
were quantum, area, location, demand, restrictive entry to the land. This valuation was based on valuations
performed by accredited independent registered valuer. Fair valuation was based on depreciated open market
price method. The fair value measurement was categorized in level 2/ level 3 fair value hierarchy.

5.3 During the previous year, the Company had transferred certain portion of Freehold land to Building under
Property, Plant and Equipment at cost resulting in reversal of earlier years revaluation gain amounting to ^ 3.33
Crores. These reversals had been recognized and presented under “Other Comprehensive Income”.

5.7 All the title deeds of the immovable property are held in the name of the Company.

5.8 Title deed for freehold land under Property, Plant and Equipment amounting to ^ 44.68 Crores (Previous year
^ 13.06 Crores), although in the name of Company, is in dispute and is pending resolution before the Court of
Civil Judge, Rajgurunagar (Khed) and Additional Division Commissioner, Pune.

5.9 No proceedings have been initiated or are pending against the Company for holding any benami property under
the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

5.10 Right of Use Assets includes:

(a) Leasehold Land” represents land obtained on long term lease from various Government and other authorities.

(b) “ Plant & Machinery” represents:

- Machinery recognized as per long term power purchase agreement in accordance with the principles
of IND AS 116 “Leases” (Refer Note No. 62); and

- Railway Wagons recognized as per long term wagon leasing agreement in accordance with the
principles of IND AS 116 “Leases”.

5.11 Refer Note No. 43 for disclosure of contractual commitments for the acquisition of Property, Plant and Equipment.

5.12 Refer Note No. 44 for information on property, plant and equipment pledged as securities by the Company.

6.1 Fair value of the Company’s Investment Properties as at 31^st March, 2025 and 31^st March, 2024 are ^ 61.26
Crores and ^ 60.40 Crores respectively. The fair value has been arrived on the basis of valuation performed by
independent registered valuers as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules,
2017, who are specialist in valuing these types of Investment Properties, having appropriate qualifications and
recent experience in the valuation of properties in relevant locations.

6.2 The fair valuation is based on current prices in the active market for similar properties and rental income of similar
type of property in the same locality. The main inputs used are quantum, area, location, demand, restrictive
entry to the land and building, age of the building and trend of fair market rent in the locality. This valuation
is based on valuations performed by accredited independent registered valuers. Fair valuation is based on
depreciated open market price method and rental method. The fair value measurement is categorized in level
3 fair value hierarchy.

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 major portion 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, 2026. 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.

20.9 No ordinary shares have been reserved for issue under options and contracts/ commitments for the sale of
shares/ disinvestment as at the Balance Sheet date.

20.10 The Company has neither allotted any equity shares against consideration other than cash nor has issued any
bonus shares nor has bought back any shares during the period of five years preceding the date at which the
Balance Sheet is prepared.

20.11 No securities convertible into Equity/ Preference shares have been issued by the Company during the year.

20.12 No calls are unpaid by any Director or Officer of the Company during the year.

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 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 account of fair valuation of freehold land. This will be
directly transferred to retained earnings at the time of sale/disposal/transfer (if any) of the respective portion
of freehold land.

28.2 The Company participates in various supply chain finance programs under which participating suppliers may
voluntarily elect to sell some or all of their Novelis receivables to third-party financial institutions. Supplier
participation in the programs is solely up to the supplier, and participating suppliers enter their arrangements
directly with the financial institutions. The Company and its suppliers agree on the contractual terms for the
goods and services it procures, including prices, quantities and payment terms, regardless of whether the supplier
elects to participate in these programs. Our suppliers’ voluntary inclusion of invoices in these programs has no
bearing on our payment terms. Further, we have no economic interest in a supplier’s decision to participate in
these programs. The payment terms that we have with our suppliers range up to 180 days and are considered
commercially reasonable. As at 31^st March, 2025 and 31^st March, 2024, confirmed supplier invoices that are
outstanding and subject to the third-party programs included in trade payable are ^ 9.11 Crores and ^ NIL
respectively. We do not believe that future changes in the availability of supply chain financing will have a
significant impact on our liquidity.

38.1 Representing reversal of land tax provision pertaining to earlier years on the basis of exemption notification of
Government of Rajasthan dated 8^th February, 2024 exempting land tax payable on all classes of land.

38.2 Representing incentive income of earlier years sanctioned to the Company under Rajasthan Investment
Promotion Scheme -2010 based on the amendment order received in previous year for extending the validity
of the scheme.

38.3 Representing provision for employee benefits expense made on account of increasing the retirement age of
superannuation from the existing 58 years to 60 years prescribed by the Government of Madhya Pradesh vide
clause 14-A of Annexure appended to Madhya Pradesh Industrial Employment (Standing Orders) Rules, 1963.
The Company has challenged the validity of the above provision and the matter is currently sub judice. However,
as a matter of prudence, provision has been made on this account.

38.4 On account of penalty levied by the Office of the Collector (Mining) Satna, Madhya Pradesh vide order dated
9^th October, 2023 for excess production of limestone from captive mining during the years 2000-01 to 2006¬
07 without obtaining environment clearance, which was not taken due to ambiguity in the provision of EIA
Notification 1994 and was clarified only subsequently by the principles laid down by the Hon’ble Supreme
Court in the judgement of Common Cause vs Union of India dated 2^nd August 2017.

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. However,
the Company has applied the lower income tax rates on the deferred tax assets / liabilities to the extent these
are expected to be realised or settled in the future period when the Company would be subjected to lower
tax rate and accordingly as on 31^st March, 2025 and 31^st March, 2024 the Company has (reversed) / created
deferred tax liability of (-) ^ 3.62 Crores and ^ 6.24 Crores respectively. Applicable Indian Statutory Income Tax
Rate for both the Fiscal Years 2025 and 2024 is 34.944%.

39.3 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, during the year, the Company has reversed deferred tax liability
of ^ 67.93 Crores and credited Other Comprehensive Income.

39.4 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, 2025 and 31^st
March, 2024.

Note:

(a) For A.Y. 2000-01 to 2006-07, Company has 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. The estimated
impact of income tax on account of the above matter is ^ 24.06 Crores. Pending receipt of appeal effect of the Order,
consequential interest is not presently ascertainable. 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. 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. Accordingly, no adjustment is considered necessary at this stage.

(b) The Company has received notice from the 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. We are informed that the Award is not yet received. Hence, pending final award, no provision
has been made for any possible liability. 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 In 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.

42 Dividend

The Board of Directors at its meeting held on 9^th May, 2025 have recommended a payment of final dividend
of ^ 10.00 per equity share of face value of ^ 10 each for the financial year ended 31^st March, 2025. The same
amounts to ^ 77.01 Crores.

The above is subject to approval at the ensuing Annual General Meeting of the Company and hence is not
recognized as a liability.

The above information has been determined to the extent such parties have been identified on the basis of

information available with the Company and the same has been relied upon by the auditor.

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.

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.

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.

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.

The Gratuity Scheme is invested in a Group Gratuity-cum-Life Assurance Cash accumulation policy offered by Life
Insurance Corporation (LIC) of India, Cap Assure Group Gratuity Scheme offered by SBI Life Insurance Co. Limited,
HDFC Life Group variable employee benefit plan offered by HDFC Standard Life Insurance Company Limited,
IndiaFirst New Corporate Benefit plan for gratuity offered by IndiaFirst Life Insurance Company Limited, Bajaj
Allianz Group Employee Care plan offered by Bajaj Allianz Life Insurance Company Limited, ICICI Pru Group Unit
Linked Employee Benefit Plan offered by ICICI Prudential Life Insurance Company Limited and Kotak Secure Return
Employee Benefit Plan offered by Kotak Mahindra Life Insurance Limited. In addition to above, the Company has
also contributed in equity and debt funds through various insurance company such as HDFC life group UL Future
Secure Plan offered by HDFC Standard Life Insurance Company Limited, Group Gratuity ULIP Regular offered
by ICICI Prudential Life Insurance Company Limited, Equity advantage fund offered by IndiaFirst Life Insurance
Company Limited and Kotak Corporate Benefit Plan - Gratuity offered by Kotak Mahindra Life Insurance Limited.
The information on the allocation of the fund into major asset classes and expected return on each major class are
not readily available.

48.2.11 Asset-Liability Matching Strategy

The Company’s investment is in Cash Accumulation Plan/Traditional Plan/ULIP of various Insurance Companies,
the investments are being managed by these Insurance Companies and at the year end interest is being credited
to the fund value. The Company has not changed the process used to manage its risk from previous periods except
the company has made investment of fund in various equity/debt funds through various insurance companies. The
Company’s investments are fully secured and would be sufficient to cover its obligations

Sensitivity due to mortality and withdrawal rate being insignificant, ignored.

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 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.

The Company has an obligation to fund any shortfall on the yield of the trust’s investments over the administered
interest rates on an annual basis. These administered rates are determined annually predominantly considering
the social rather than economic factors and in most cases the actual return earned by the Trust has been higher
in the past years. The actuary has provided a valuation for provident fund liabilities on the basis of guidance issued
by Actuarial Society of India and based on the below provided assumptions there is no shortfall in current year and
previous year.

a Excess amount spent by the Company not showing as prepaid expenses in the accounts.

50 The Board of Directors of the Company at its meeting held on 25^th July, 2013 had approved the Scheme of
Amalgamation to amalgamate Talavadi Cements Limited, a 98.01% subsidiary company, with the Company
with an appointed date of 1^st April, 2013. The Scheme is pending for approval of the National Company Law
Tribunal, Kolkata.

51 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 Markibaraka 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. The Company is in process to develop these
blocks for extraction of Coal. Till 31^st March 2025 and 31^st March 2024, Company has spent ^ 109.32 Crores
and ^ 98.82 Crores respectively and shown under Capital Work-In-Progress.

The Company has received show cause notices from Ministry of Coal (MoC) on different dates against
delay in commissioning of Bikram and Brahampuri Coal Blocks and non-submission of mining plan for
Markibarka Coal Block. The Company has duly responded to these show cause notices stating the facts
for delay in commissioning (mainly on account of the events not in control of the Company and drastic
reduction in extractable reserves, in case of Brahampuri Coal Block) and non-submission of revised mining
plan (mainly on account of discrepancy in the government data with respect to geographical boundaries
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 the writ petitions before the Hon’ble High Court of
Jabalpur, which are pending at reporting date. In the considered view of the Management, the Company
has strong grounds for favourable verdicts that would lead to extension of original commissioning dates
and acceptance of the Markibarka mining plan. Hence, no provision for impairment is considered necessary
at this stage.

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 of Trade 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 and Auto Trim Division at Birlapur, are under Suspension of Operations
since 18^th February, 2014. Further, the Board had also passed resolutions and declared “Closure of
Manufacturing Establishments” for Biralpur Unit and Gurgaon Unit of Auto Trim Division and Birla Vinoleum
from 30^th July, 2021, 1^st September, 2022 and 20^th February, 2025 respectively.

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 Hon’ble Court has directed to
furnish e- copies of the report to the counsels of all the parties, giving opportunity to file their objections/
observations on the findings given in the report. The Hon’ble Supreme Court on 8^th April, 2025, accepted
the request of State Government of Rajasthan to place its stand within three weeks.

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

a) The Company is entitled to receive incentive in the form of Industrial Promotional Assistance (IPA) under the
West Bengal Incentive Scheme, 2000 for a period of 10 years with effect from FY 2005-06 in relation to the
cement manufacturing unit- Durga Hi-Tech Cement (“DHTC”) located at Durgapur. The Company has received

eligibility certificate No. INC-2000/EC-386 (B) dated 30^th August, 2005, from the Government of West Bengal
confirming the eligibility of claim of incentive. The outstanding claim balance as on 31^st March, 2025 is ^
138.58 Crores.

Aggrieved by the indefinite delay by the Government of West Bengal in disbursal of the funds, the Company had
filed a writ petition dated 22^nd September, 2017 before Hon’ble High Court of Calcutta. The Hon’ble High Court
at Calcutta vide its Order dated 22^nd September, 2022 had directed the State Government to pay the amount of
IPA of ^ 55.66 Crores already sanctioned to the Company by West Bengal Industrial Development Corporation
Ltd (WBIDC) within four weeks from the date of the Order and to dispose of the representation made by the
Company within six weeks from the date of the Order. The State Government had filed an appeal against the
above Order before the Division Bench of Hon’ble High Court at Calcutta which was dismissed by the Hon’ble
Court on 9^th April, 2024 and reiterated the directions of the Order of the Hon’ble High Court at Calcutta for the
payment of IPA of ^ 55.66 crores and also directed the department to verify and disburse the balance claim of
the Company as expeditiously as possible but positively within a period of four weeks from the date of the Order.
Pending receipt of the amount within the aforesaid period, the Company has filed a Contempt Petition on 12 ^th
July, 2024 before the Hon’ble High Court at Calcutta. The State Government then filed a Special Leave Petition
(SLP) before the Hon’ble Supreme Court challenging the Order of Hon’ble High Court at Calcutta dated 9^th April,
2024. However, the Hon’ble Supreme Court dismissed the said SLP vide its Order dated 23^rd September, 2024.
Subsequent to the dismissal of the SLP by the Hon’ble Supreme Court, the State Government filed a Review
Petition before the Hon’ble High Court on 12^th November, 2024. Both the Contempt Petition dated 12^th July,
2024 filed by the Company and the Review Petition dated 12^th November, 2024 filed by the State Government
are pending before the Hon’ble High Court.

Based on the Company’s internal assessment and legal advice, the Company is confident about the ultimate
realisation of the dues from the State Government. However, as a matter of abundant caution based on its
assessment of the expected time for recovery of the incentive, a provision of ^ 33.61 Crores on account of time
value of money based on the expected credit loss method has been made in earlier years.

b) The Company is entitled to receive incentive in the form of Industrial Promotional Assistance (IPA) under the West
Bengal State Support for Industries, Scheme, 2008 for a period of 8 years with effect from FY 2012-13 in relation to
the cement manufacturing unit- Durgapur Cement Works (DCW) located at Durgapur. The Company had received
from the Government of West Bengal the eligibility certificate No. DI/2008/151(B) [39/334/Burdwan (Durgapur)/
72(2)/1971]/Pt-II dated 1^st March, 2013, confirming the eligibility of claim for incentive. In accordance with the
eligibility certificate and provisions of the Scheme, the total incentive accrued to the Company under scheme is
^ 28.58 Crores which is still pending for realisation. Based on internal assessment a provision of ^ 28.58 Crores
(^ 13.36 Crores in current year and ^ 15.22 Crores in earlier years) has been made.

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.

* Trade & Security Deposits classified under more than 5 years maturity pertain to “ Dealer Trade Deposit “ which are refundable
only after surrender of dealership and subject to clearance of outstanding dues.

c) The amounts are gross and undiscounted (except for lease liability) and exclude the impact of netting agreements
(if any). The future cash flows on derivative instruments may be different from the amount in the above tables
as exchange rates change. Except for these financial liabilities, it is not expected that cash flows included in
the maturity analysis could occur significantly earlier, or at significantly different amounts. When the amount
payable is not fixed, the amount disclosed has been determined with reference to conditions existing at the
reporting date.

55.3 Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market prices. Market risk comprises four type of risks: Commodity Price Risk, Foreign Currency Risk,
Interest Rate Risk and Other Price Risk.

55.3.1 Commodity Price Risk

The Company primarily imports coal, pet coke, gypsum and raw jute. It is exposed to commodity price risk
arising out of movement in prices of such commodities. Such risks are monitored by tracking of the prices and
are managed by entering into fixed price contracts, where considered necessary.

The Company has Foreign Currency Exchange Risk on imports of input materials, capital equipments and also
borrows funds in foreign currency for its business. The Company evaluates the impact of foreign exchange
rate fluctuations by assessing its exposure to exchange rate risks. Certain transactions of the Company act as a
natural hedge as a portion of both assets and liabilities are denominated in similar foreign currencies. For the
remaining exposure to foreign exchange risk, the Company adopts a policy of selective hedging based on risk
perception of the management using derivative, wherever required, to mitigate or eliminate the risk.

a) Exposure to currency risk

The Company’s exposure to foreign currency risk at the end of the reporting period are as follows:

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.

55.3.4 Other Price Risk

The Company’s exposure to equity securities price risk arises from investments held by the Company and classified
in the balance Sheet either at fair value through other comprehensive income or at fair value through profit and
loss. Having regard to the nature of securities, intrinsic worth, intent and long term nature of securities held by the
Company, fluctuation in their prices are considered acceptable and do not warrant any management.

55.4 Hedge Accounting - Cash Flow Hedges

The objective of cross currency swap and interest rate swaps is to hedge the cash flows of the foreign currency
denominated debt related to variation in foreign currency exchange rates and interest rates. The hedge provides
for exchange of notional amount at agreed exchange rate of principle at each repayment date and conversion
of variable interest rate into fixed interest rate as per notional amount at agreed exchange rate. The Company
is following hedge accounting for cross currency swaps and Interest rate swaps based on qualitative approach.
The Company is having risk management objectives and strategies for undertaking these hedge transactions.
The Company has maintained adequate documents stating the nature of the hedge and hedge effectiveness
test. The Company assesses hedge effectiveness based on following criteria:

i. An economic relationship between the hedged item and the hedging instrument

ii. The effect of credit risk

iii. Assessment of the hedge ratio

The Company designates cross currency swaps and interest rate swaps and some foreign currency forward
contracts to hedge its currency and interest risk and generally applies hedge ratio of 1:1.

All these derivatives have been marked to market to reflect their fair value and the fair value differences
representing the effective portion of such hedge have been taken to equity.

55.4.3 Foreign Currency Forward Contracts and Overnight Index Swaps

The Company enters into forward contracts with intention to reduce the foreign exchange risk of expected
purchases and enters into overnight index swap to manage interest cost on fixed rate borrowings. Certain
foreign currency forward contracts are not designated as cash flow hedges and are entered into for periods
consistent with foreign currency exposure of the underlying transactions, generally within one year. Similarly, the
overnight index swaps are also not designated as cash flow hedges. The fair value of foreign currency forward
contracts and overnight index swaps are as under:

56 Capital Management

The Company’s objective to manage its Capital is to ensure continuity of business while at the same time
provide reasonable returns to its various stakeholders but keep associated costs under control. In order to
achieve this, requirement of Capital is reviewed periodically with reference to operating and business plans
that take into account capital expenditure and strategic Investments. Sourcing of Capital is done through
judicious combination of equity/internal accruals and borrowings, both short term and long term. The Company
monitors Capital using Gearing Ratio which is Net Debt (total borrowings less current investments, cash and
cash equivalents and other bank balances) divided by Total Equity plus Net Debt.

57 Government grants during the year comprising Incentive and Subsidies
include:

57.1 Tax incentive for capital investments under various State Investment Promotion Schemes of ^ 3.12 Crores
(Previous Year ^ 16.51 Crores). Out of this ^ NIL (Previous Year ^ 8.18 Crores) shown as a exceptional item in
Statement of Profit and Loss.

57.2 Amortisation of the deferred revenue of ^ 3.05 Crores (Previous Year ^ 2.52 Crores) arising due to difference
between the fair value & nominal value of interest free loan granted under State Investment Promotion Scheme.

57.3 Amortisation of the deferred revenue of ^ 0.10 Crore (Previous Year ^ 0.16 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 ^ 0.15 Crore (Previous Year ^ 1.22 Crores).

57.5 The Company has also recognised income from export benefits of ^ 1.44 Crores (Previous Year ^ 1.73 Crores).

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.

C) Other Disclosures

The Company’s operations predominantly relate to Cement. Other products are Jute Goods and Steel Castings.
Accordingly, these business segments comprise the primary basis of segmental information set out in the
standalone financial statements.

Inter-segment transfers are based on prevailing market prices except for Iron & Steel Castings which is based
on cost plus profit.

The accounting policies adopted for segment reporting are in line with the accounting policy of the Company.

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 as well as Corporate Guarantee issued 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 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 ^ 1000 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 amortised cost under “Deposits” at ^ 0.43 Crore as per the provision of Ind AS 109 and the
difference between amortised 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 Previous year figures have been regrouped/ rearranged/ reclassified wherever necessary. Further, there are no
material regroupings/ reclassifications during the year.

As per our annexed Report of even date

For V. SANKAR AIYAR & CO. For and on behalf of the Board of Directors

Chartered Accountants

Firm Registration No. 109208W

PUNEET KUMAR KHANDELWAL ADITYA SARAOGI HARSH V. LODHA

Partner Group Chief Financial Officer Chairman

Membership No. 429967 (DIN: 00394094)

MANOJ KUMAR MEHTA SANDIP GHOSE

Company Secretary Managing Director

Kolkata & Legal Head & Chief Executive Officer

Date: 9^th May, 2025 (DIN: 08526143)