(x) Provisions and contingent liabilities

a) Provisions

Provisions are recognised when the Company has a
present legal or constructive obligation as a result of past
events, it is probable that an outflow of resources will be
required to settle the obligation and the amount can be
reliably estimated. Provisions are not recognised for future
operating losses.

Provisions are measured at the present value of
management’s best estimate of the expenditure required
to settle the present obligation at the end of the reporting
period. The discount rate used to determine the present
value is a pre-tax rate that reflects current market
assessments of the time value of money and the risks
specific to the liability. The increase in the provision due to
the passage of time is recognised as interest expense.

b) Contingencies

Contingent liabilities are disclosed when 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 or a present
obligation that arises from past events where it is either not
probable that an outflow of resources will be required to

settle or a reliable estimate of the amount cannot be made.
Information on contingent liability is disclosed in the Notes
to the Standalone Financial Statements.

(xi) Borrowings

Borrowings are initially recognised at fair value, net of
transaction costs incurred. Borrowings are subsequently
measured at amortised cost. Any difference between the
proceeds (net of transaction costs) and the redemption amount
is recognised in profit or loss over the period of the borrowings
using the effective interest method.

Borrowings are removed from the balance sheet when the
obligation specified in the contract is discharged, cancelled
or expired. The difference between the carrying amount of a
financial liability that has been extinguished or transferred to
another party and the consideration paid, including any non¬
cash assets transferred or liabilities assumed, is recognised in
the Standalone Statement of Profit and Loss as other gains/
(losses).

Borrowings are classified as current liabilities unless the
Company has an unconditional right to defer settlement of the
liability for at least 12 months after the reporting period.

(xii) Segment reporting

Operating segments are reported in a manner consistent with
the internal reporting provided to the Chief Operating Decision
Maker CCODM').

The Board of Directors, together with Managing Director
has been identified as the Chief Operating Decision Maker
CCODM'). CODM evaluates the performance of the Company
based on the single operative segment for the purpose of
allocation resources and evaluating financial performance.

(xiii) Government grants

Grants from the government are recognised at their fair
value where there is reasonable assurance that the grant
will be received and the Company will comply with required
conditions. Export incentive under Remission of Duties and
Taxes on Export products (RODTEP). Merchandise Exports from
India Scheme (MEIS) and duty drawback are accrued when no
significant uncertainties as to the amount of consideration that
would be derived and as to its ultimate collection exist.

(xiv) Employee benefits

Defined benefit plan - Gratuity

The liability recognised in the balance sheet is the present
value of the defined benefit obligation at the end of the
reporting period less the fair value of plan assets. The defined
benefit obligation is calculated annually by an actuary using
the projected unit credit method.

The present value is determined by discounting the estimated
future cash outflows by reference to market yields at the end
of the reporting period on government bonds that have terms
approximating to the terms of the related obligation.

The net interest cost is calculated by applying the discount rate
to the net balance of the defined benefit obligation and the fair
value of plan assets. This cost is included in employee benefit
expense in the Standalone Statement of Profit and Loss.

Remeasurement gains and losses arising from experience
adjustments and changes in actuarial assumptions are
recognised in the period in which they occur, directly in other
comprehensive income. They are included in retained earnings
in the Standalone Statement of Changes in Equity and in the
Standalone Balance Sheet.

Changes in the present value of the defined benefit obligation
resulting from plan amendments or curtailments are recognised
immediately in profit or loss as past service cost.

Defined contribution plans

The Company's contribution to provident fund, national
pension scheme and employees' state insurance scheme are
considered as defined contribution plans and are charged as
expense in the Standalone Statement of Profit and Loss, based
on the amount of contribution required to be made and when
services are rendered by the employee. The Company does not
have obligation beyond it's contribution.

Other Benefits - Compensated Absences

Accumulated compensated absences, which are expected to
be availed or encashed within 12 months from the end of the
year end are treated as short-term employee benefits. The
obligation towards the same is measured at the expected cost
of accumulating compensated absences as a result of the
unused entitlement as at the year end.

Accumulated compensated absences, which are expected
to be availed or encashed beyond 12 months from the end of
the yea’ are treated as other long-term employee benefits.
The Company's liability is actuarially determined (using the
Projected ‘Jmt Credit method) at the end of each year. Actuarial
losses/ gains are recognised in the Standalone Statement of
Profit and Loss in the year m which they arise. The obligations
are presented as current liabilities in the balance sheet if the
entity does not have an unconditional right to defer settlement
for at least twelve months after the reporting period, regardless
of when the actual settlement is expected to occur.

Short-term employee benefits

The undiscounted amount of short-term employee benefits
expected to be paid in exchange for the services rendered by
employees are recognised during the year when the employees
render the service.

xv) Employee Share-based compensation

RHI Magnesita N.V. (the 'Ultimate Holding Company") has
implemented a share option plan for the members of senior
management of the RHI Magnesita Group.

The fair value of the options granted is recognised as employee
benefits expense with a corresponding increase in reserves.
The total amount to be expensed is determined by reference to
the fair value of the options granted:

a) including any market performance conditions

b) excluding the impact of any service and non-market
performance vesting conditions, and

c) including the impact of any non-vesting conditions

The total expense is recognised over the vesting period, which
is the period over which all of the specified vesting conditions
are to be satisfied.

(xvi) Foreign currency translation

(i) Functional and presentation currency

Items included in the Standalone Financial Statements
are measured using the currency of the primary economic
environment in which the Company operates ('the
functional currency"). The Company's operations are
primarily in India. The Standalone Financial Statements are
presented in Indian Rupee (INR). which is the Company's
functional and presentation currency.

(ii) Transactions and balances

Foreign currency transactions are translated into the
functional currency using the exchange rates at the dates
of the transactions. Foreign exchange gains and losses
resulting from the settlement of such transactions and
from the translation of monetary assets and liabilities
denominated into foreign currencies at year end exchange
rates are recognised in the Standalone Statement of Profit
and Loss.

Foreign exchange differences arising on foreign currency
borrowings are presented in Ihe Standalone Statement
of Profit and Loss within finance costs. All other foreign
exchange gains and losses are presented in the Standalone
Statement of Profit and Loss on a net basis within Other
Income/Expense. as appropriate.

Non-monetary items that are measured at fair value in a
foreign currency are translated using the exchange rates at
the date when the fair value was determined. Translation
differences on assets and liabilities carried at fair value are
reported as part of the fair value gain or loss.

(xvii) Borrowing costs

General and specific borrowing costs that are directly
attributable to the acquisition, construction or production of a
qualifying asset are capitalised during the period of time that
is required to complete and prepare the asset for Its intended
use or sale. Qualifying assets are assets that necessarily take
a substantial period of time to get ready for their intended use
or sale.

Investment income earned on the temporary investment of
specific borrowings pending their expenditure on qualifying
assets is deducted from the borrowing costs eligible for
capitalisation.

Other borrowing costs are expensed in the period in which
they are incurred.

(xviii) Earnings per Share

(i) Basic earnings per share

Basic earnings per share is calculated by dividing:

• the profit attributable to owners of the Company

• by the weighted average number of equity shares
outstanding during the financial year

(ii) Diluted earnings per share

Diluted earnings per share adjusts the figures used in
the determination of basic earnings per share to take into
account:

• the after income tax effect of interest and other financing
costs associated with dilutive potential equity shares,
and

• the weighted average number of additional equity
shares that woutd have been outstanding assuming the
conversion of all dilutive potential equity shares.

(xix) Trade and other payables

These amounts represent liabilities for goods and services
provided to the Company prior to the end of the financial
year which are unpaid. The amounts are unsecured and are
usually paid within 30 days of recognition. Trade and other
payables are presented as current liabilities unless payment
is not due within 12 months after the reporting period. They
are recognised initially at their fair value and subsequently
measured at amortised cost using the effective interest method.

(xx) Trade receivables

Trade receivables are amounts due from customers for goods
sold or services performed in the ordinary course of business
and reflects Company's unconditional right to consideration
(that is. payment is due only on the passage of time). Trade
receivables are recognised initially at the transaction price as
they do not contain significant financing components. The
Company holds the trade receivables with the objective of
collecting the contractual cash Hows and therefore measures
them subsequently at amortised cost using the effective
interest method, less loss allowance.

For trade receivables and contract assets, the Company applies
the simplified approach required by Ind AS 109. which requires
expected lifetime losses to be recognised from the Initial
recognition of receivables.

(xxi) Dividends

Provision is made for the amount of any dividend declared,
being appropriately authorised and no longer at the discretion
of the Company, on or before the end of the reporting period
but not distributed at the end of the reporting period.

(xxii) Business Combinations

The acquisition method of accounting is used to account
for all business combinations, regardless of whether equity
instruments or other assets are acquired. The consideration
transferred for the acquisition of a subsidiary and business
comprises the:

• fair values of the assets transferred

• liabilities incurred to the former owners of the acquired
business

• equity interests issued by the Group

• fair value of any asset or liability resulting from a
contingent consideration arrangement.

Identifiable assets acquired and liabilities and contingent
liabilities assumed in a business combination are. with limited
exceptions, measured initially at their fair values at the
acquisition date.

Acquisition-related costs are expensed as incurred.

The excess of the:

• consideration transferred

• amount of any non-controlling interest in the acquired
entity

• acquisition-date fair value of any previous equity interest
in the acquired entity

over the fair value of the net identifiable assets acquired is
recorded as goodwill. If those amounts are less than the fair
value of the net identifiable assets of the business acquired,
the difference is recognised in other comprehensive income
and accumulated in equity as capital reserve provided there
is clear evidence of the underlying reasons for classifying the
business combination as a bargain purchase. In other cases,
the bargain purchase gain is recognised directly in equity as
capital reserve.

(xxiii) Investments in subsidiaries

Investments in subsidiaries are carried at costless accumulated
Impairment losses, if any. Where an indication of impairment
exists, the carrying amount of investment is assessed and an
impairment provision is recognised, if required immediately
to its recoverable amount. On disposal of such investments,
difference between the net disposal proceeds and carrying
amount is recognised in the Standalone Statement of Profit
and Loss.

(xxiv) Contributed equity

Equity shares are classified as equity.

Incremental costs directly attributable to the issue of new
shares are shown in equity as a deduction, net of tax. from the
proceeds.

Not© 48:

Investment in Subsidiary

On May 08. 2023 and August 11. 2023. the Company had made
further investment in RHIMIRL a wholly owned subsidiary of the
Company, by way of subscription of 16.975.051 and 5.072.464
equity shares of RHIMIRL. respectively, having face value of
? 10 each at a premium of ? 197 each for an amount aggregating to
? 45.638.36 lakhs on right issue basis. The purpose of subscription of
equity shares of RHIMIRL by the Company was for repayment or pre¬
payment in full or in part of certain borrowings availed by RHIMIRL
and investment in RHIMIRL's subsidiary i.e. RHIMSRL

For Price Waterhouse Chartered Accountants LLP For and on behalf of the 3oard of Directors of

Firm Registration Number: 012754N/N500016 RHi Magnesite India Limited

Anuiag Khandelwal Farmed Sagar Azim Syed

Partner Chairman. Managing Director & CEO Whole-time Director and

Membership Number: 078571 (DIN - 06500871) Chief Financial Officer

(DIN -10641934)

Sanjay Kumai
Company Secretary
(ACS-1702D

Place: Gur ugi am Place: Gur ugram

Date: May 28.2025 Date. May 28.2025