R. Provisions, contingent liabilities and
contingent assets
Provisions

Provisions are recognized when the Company has a
present obligation (legal or constructive) as a result
of a past event and it is probable that the outflow
of resources embodying economic benefits will be
required to settled the obligation in respect of which
reliable estimate can be made of the amount of the
obligation. When the Company expects some or all
of a provision to be reimbursed, the expense relating
to provision presented in the statement of profit &
loss is net of any reimbursement.

If the effect of the time value of money is material,
provisions are disclosed using a current pre-tax rate
that reflects, when appropriate, the risk specific to
the liability. When discounting is used, the increase
in the provision due to the passage of time is
recognized as finance cost.

Contingent liability is disclosed in the notes in case
of:

• There is a possible obligation arising from past
events, 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.

• A present obligation arising from past event,
when it is not probable that as outflow

of resources will be required to settle the
obligation

• A present obligation arises from the past event,
when no reliable estimate is possible

• A present obligation arises from the past event,
unless the probability of outflow are remote.

Commitments include the amount of purchase order
(net of advances) issued to parties for completion of
assets.

Provisions, contingent liabilities, contingent assets
and commitments are reviewed at each balance
sheet date.

Onerous Contracts

A provision for onerous contracts is measured at
the present value of the lower expected cost of
terminating the contract and the expected cost
of continuing with the contract. Before a provision
is established, the Company recognizes the
impairment on the assets with the contract.

Contingent assets

Contingent assets are not recognized in the
financial statements.

S. Cash and cash equivalents

Cash and cash equivalents includes cash on hand
and at bank, deposits held at call with banks, other
short-term highly liquid investments with original
maturities of three months or less that are readily
convertible to a known amount of cash and are
subject to an insignificant risk of changes in value.

For the purpose of the Statement of Cash Flows,
cash and cash equivalents consists of cash and short
term deposits, as defined above, net of outstanding
bank overdraft as they being considered as integral
part of the Company's cash management.

T. Impairment

Non-financial assets

Property, plant and equipment, intangible assets and
assets classified as investment property with finite
life are evaluated for recoverability whenever there
is any indication that their carrying amounts may
not be recoverable. If any such indication exists, the
recoverable amount (i.e. higher of the fair value less
cost to sell and the value-in-use) is determined on
an individual asset basis unless the asset does not

generate cash flows that are largely independent
of those from other assets. In such cases, the
recoverable amount is determined for the Cash
Generating Unit (CGU) to which the asset belongs.

If the recoverable amount of an asset or CGU is
estimated to be less than its carrying amount, the
carrying amount of the asset (or CGU) is reduced
to its recoverable amount. An impairment loss is
recognized in the statement of profit or loss.

An impairment loss is reversed in the statement
of profit and loss if there has been a change in
the estimates used to determine the recoverable
amount. The carrying amount of the asset is
increased to its revised recoverable amount,
provided that this amount does not exceed
the carrying amount that would have been
determined (net of any accumulated amortization
or depreciation) had no impairment loss been
recognized for the asset in prior years.

Impairment losses on continuing operations,
including impairment on inventories are recognized
in the statement of profit and loss, except for
properties previously revalued with the revaluation
taken to other comprehensive income. For such
properties, the impairment is recognized in OCI up
to the amount of any previous revaluation surplus.

Financial assets

The Company applies 'simplified approach'
measurement and recognition of impairment loss
on the following financial assets and credit risk
exposure:

• Financial assets that are debt instrument and
are measured at amortized cost e.g. loans, debt
securities, deposits, and bank balance.

• Trade receivables

The application of simplified approach does not
require the Company to track changes in credit risk.
Rather, it recognizes impairment loss allowance
based on lifetime expected credit loss at each
reporting date, right from its initial recognition.

(ix) Significant clients

There is no single customer who has contributed 10% or more to the company's revenue for both the years ended
March 31, 2025 and March 31, 2024.

Notes:-

a) The accounting policies of the reportable segments are the same as the Company's accounting policies
described in note no. 2 & 3.

b) All assets are allocated to reportable segments other than investments, loans, certain financial assets and
current and deferred tax assets. Segment assets include all assets directly attributable to the segments and
portion of the enterprise assets that can be allocated on a reasonable basis to the segments.

c) All liabilities are allocated to reportable segments other than borrowings, certain financial liabilities, current
and deferred tax liabilities. Segment liabilities include all liabilities directly attributable to the segments and
portion of the enterprise liabilities that can be allocated on a reasonable basis to the segments.

37 Employee Benefits - Gratuity & Post employement benefits

37.1 Gratuity

Gratuity is computed as 15 days salary, for every recognized retirement / termination / resignation. The Gratuity
plan for the company is a defined benefit scheme where annual contributions as per actuarial valuation are
charged to the Statement of profit and loss.

For summarizing the components of net benefit expense recognized in the statement of profit and loss and the
funded status and amounts recognized in the balance sheet for the respective plans, the details are as under

42 Financial Risk Management

Financial risk management objectives and policies:

Sugar industry being an industry which is cyclical in nature, the Company's operational activities are exposed to
various financial & operational risks, such as economical & political risk, market risk, credit risk and risk of liquidity.
The Company realizes that risks are inherent and integral aspect of any business. The primary focus is to foresee
the unpredictability of markets and seek to minimize potential adverse effects on its financial performance. The
Company's senior management oversees the management of these risks and devise appropriate risk management
framework for the Company. The senior management provides assurance that the Company's financial risk
activities are governed by appropriate policies and procedures and that financial risks are identified, measured
and managed in accordance with the Company's policies and risk objectives.

A Market Risk:-

The Company operates internationally and is transacted in foreign currencies and consequently the Company
is exposed to foreign exchange risk through its sales in overseas. The Company holds derivative financial
instruments such as foreign exchange forward to mitigate the risk of changes in exchange rates on foreign
currency exposures.

During the year ended March 31, 2025, the Company has designated certain foreign exchange forward contracts
as cash flow hedges to mitigate the risk of foreign exchange exposure on highly probable forecast cash
transactions. The related hedge transactions for balance in other comprehensive income - cash flow hedge as at
March 31, 2025 are expected to occur and reclassified to statement of profit and loss within 1 year.

Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective
effectiveness assessments to ensure that an economic relationship exists between the hedged item and hedging
instrument, including whether the hedging instrument is expected to offset changes in cash flows of hedged
items.

If the hedge ratio for risk management purposes is no longer optimal but the risk management objective remains
unchanged and the hedge continues to qualify for hedge accounting, the hedge relationship will be rebalanced
by adjusting either the volume of the hedging instrument or the volume of the hedged item so that the hedge
ratio aligns with the ratio used for risk management purposes. Any hedge ineffectiveness is calculated and
accounted for in the Statement of Profit or Loss at the time of the hedge relationship rebalancing.

The Company offsets a financial asset and a financial liability when it currently has a legally enforceable right to
set off the recognized amounts and the Company intends either to settle on a net basis, or to realize the asset
and settle the liability simultaneously.

B Credit Risk-

Credit risk arises when a counterparty defaults on its contractual obligations to pay, resulting in financial loss to
the Company. The Company is exposed to credit risks from its operating activities, primarily trade receivables.
Since there is a blend of institutional & non institutional buyers with the Company and also considering the fact
that major sales gets effected after receipt of advance from the customers, the credit risks in respect of trade
receivables is minimized.

E Regulatory risk

Sugar industry is regulated both by Central Government as well as State Government. Central and State
Governments policies and regulations affects the Sugar industry and the Company's operations and profitability.
Distillery business is also dependent on the Government policy.

F Commodity price risk

Sugar industry being cyclical in nature, realizations get adversely affected during downturn. Higher cane price
or higher production than the demand ultimately affect profitability. The Company has mitigated this risk by well
integrated business model by diversifying into co-generation and distillation, thereby utilizing the by-products.

43 Capital Management

For the purpose of capital management, capital includes net debt and total equity of the Company. The primary
objective of the capital management is to maximize shareholder value along with an objective to keep the
leverage in check in view of cyclical capital intensive sugar business of the Company.

One of the major business of the Company is the sugar business, which is a seasonal industry, where the entire
production is made in about five to six months and then sold throughout the year. Thus, it necessitates keeping
high sugar inventory levels requiring high working capital funding. Sugar business being a cyclical business, it is
prudent to avoid high leverage and the resultant high finance cost. It is the endeavor of the Company to prune
down debts to acceptable levels based on its financial position.

The Company may resorts to further issue of capital when the funds are required to make the Company stronger
financially or to invest in projects meeting the ROI expectations of the Company.

The Company monitors capital structure through gearing ratio represented by debt-equity ratio (debt/total
equity). The gearing ratios for the Company as at the end of reporting period were as follows:

In addition to the above gearing ratio, the Company also looks at operating profit to total debt ratio (EBIDTA/
Total Debts) which gives an indication of adequacy of earnings to service the debts. The Company carefully
negotiates the terms and conditions of the loans and ensures adherence to all the financials covenants. With a
view to arrive at the desired capital structure based on the financial condition of the Company, the Company
normally incorporates a clause in loan agreements for prepayment of loans without any premium.

Further, no changes were made in the objectives, policies or process for managing capital during the period.

The Company is not subject to any externally imposed capital requirements.

44.Fair Value Measurement

This section explains the judgements and estimates made in determining the fair values of the financial
instruments that are recognised and measured at fair value. 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
prescribed under the Indian accounting standard.

46. (i) During the year ended March 31, 2025, the Board of Directors of the Company, in its meeting held on May,
14, 2024 approved the scheme of Amalgamation under section 230-232 and other applicable provisions
of the Companies Act, 2013 for amalgamation of Baghauli Sugar and Distillery Limited ("Amalgamating
Company'), a wholly owned subsidiary of the Company, with the Company ("Amalgamated company)
["Scheme"]:

The aforesaid Scheme has been sanctioned by the National Company Law Tribunal, Chennai Bench, vide
order dated April 25, 2025. The certified true copy of the said Order has been filed with the Registrar of
Companies, Ministry of Corporate Affairs, the same has become effective on May 8, 2025. The Appointed
date of the Scheme was April 01, 2024.

The same is considered as "adjusting event" as per ITFG Bulletin 14 Issue 4 issued by ICAI read with Ind AS
-10 'Events after the Reporting Period' and accordingly the financial statements for the year ended March 31,
2025 have been given effect to the above scheme.

(ii) The Amalgamating Company was engaged in the business of manufacturing and selling of Sugar.

(iii) Upon the Scheme becoming effective, the Amalgamating Company, without any act, instrument or deed,
stand dissolved without being wound-up.

(iv) Accounting treatment of the amalgamation

The amalgamation has been accounted in the books of account of the Company under 'the pooling
of interests method' i.e. in accordance with Appendix C of Ind AS 103- Business Combinations and in
accordance with the accounting treatment specified in the Scheme. Accordingly, the accounting treatment
has been given as follows:

- All assets and liabilities of the Amalgamating Company are recognised at carrying values as appearing in
the consolidated financial statements of the Company for the year ended March 31, 2024.

- The Company has recorded, in its financial statements, the Goodwill as appearing in the consolidated
financial statements of the company for the year ended March 31, 2024 to the extent it pertained to the
Amalgamating Company.

- The Company has recognised the reserves of the Amalgamating Company in its financial statements in
the same form and at the same values as they appeared in the consolidated financial statements of the
company for the year ended March 31, 2024.

- The Company's investment in Baghauli Sugar and Distillery Limited comprising 5,00,00,000 shares of Rs. 10
each fully paid up stands cancelled.

- Inter-Company balances between both the companies have been eliminated.

- Comparative figures for the previous year ended March 31, 2024 had been restated for the accounting
impact of the merger, as stated above, as if the merger has occurred from December 22, 2023 i.e. the
date on which common control has been established.

Accordingly, the amalgamation has resulted in transfer of assets and liabilities in accordance with the terms of
the Scheme at the following summarised values:

iv) The Company has not traded or invested in crypto currency or virtual currency during the financial year.

v) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including
foreign entities (Intermediaries) with the understanding that the Intermediary shall:

a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or
on behalf of the Company (ultimate beneficiaries) or

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

vi) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding
Party) with the understanding (whether recorded in writing or otherwise) that the Group shall:

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

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

viii) The Company has not declared willful defaulter by any banks or any other financial institution at any time
during the financial year.

49. Events occurring After the Balance Sheet date

1) The Company recommended a final dividend @ ' 1.50 per equity share (face value of ' 2.00 per equity share), for
financial year 2024-25 subject to approval of shareholders in ensuing annual general meeting.

2) Figures for the financial year 2023-24 & 2024-25 shall be recasted following the approval of scheme of
demerger of Refractory and Govan Travels divisions by Hon'ble National Company Law Tribunal. The effective date
of demerger is proposed to be July 01, 2023.

50. Previous Year Comparatives

Previous year's figures have been regrouped/reclassified, wherever necessary, to make them comparable with the
figures of the current year.

As per our report of even date

For NSBP & Co. For and on behalf of the Board of Directors of

Chartered Accountants Dalmia Bharat Sugar and Industries Limited

Firm's Registration Number : 001075N

Ram Niwas Jalan Rachna Goria Piyush Gupta Pankaj Rastogi Gautam Dalmia

Partner Company Secretary Chief Finance Officer Whole Time Director Managing Director

Membership No.: 082389 Membership No.: FCS6741 PAN: AEOPG5294C DIN: 10452855 DIN: 00009758

UDIN: 25082589BMMJSM2758

Place: New Delhi
Date: May 15, 2025