H. Provisions and contingencies

I. Provisions

Mines reclamation

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

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

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

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

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

Other provisions:

Provisions are recognised when the Company
has a present obligation (legal or constructive)
as a result of a past event, it is probable that
an outflow of resources embodying economic
benefits will be required to settle the obligation
and a reliable estimate can be made of the
amount of the obligation. When the Company
expects some or all of a provision to be

reimbursed, for example, under an insurance
contract, the reimbursement is recognised as a
separate asset, but only when the reimbursement
is virtually certain. The expense relating to a
provision is presented in the statement of profit
and loss net of any reimbursement.

II. Contingent liability

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

I. Revenue recognition

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

I. Sale of goods

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

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

The disclosure of significant accounting
judgements, estimates and assumptions relating
to revenue from contracts with customers are
provided in Note 3.1 (VI).

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

II. Rendering of services

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

III. Contract assets, Trade receivables and
Contract liabilities:

Contract asset:

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

Trade receivables

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

Contract liabilities

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

Rebates to customers (Refund liabilities)

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

liabilities are recognised towards the sales at
reporting date.

IV. Interest income

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

V. Dividends

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

J. Retirement and other employee benefits

I. Defined contribution plan

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

II. Defined benefit plan

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

Employee benefit in respect of certain categories
of employees, are provided in the form of
contribution to provident fund managed by a
trust set up by the Company till December 31,
2024, is charged to statement of profit and loss
for the year in which the employee renders the

related service. The Company has an obligation
to make good the shortfall, if any, between the
return from the investment of the trust and
interest rate notified by the Government of
India till December 31, 2024. Such shortfall is
recognised in the statement of profit and loss
based on actuarial valuation. W.e.f. January 01,
2025, such categories of employee benefit
has also been included in defined employee
contribution plan as stated above.

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

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

b) The date that the Company recognises
related restructuring costs

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

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

b) Net interest expense or income

c) Re-measurements, comprising actuarial
gains and losses, the effect of the asset
ceiling (if any), and the return on plan assets
(excluding net interest), are recognised
immediately in the balance sheet with a
corresponding debit or credit to retained
earnings through OCI in the period in which
they occur. Re-measurements are not
reclassified to the statement of profit and
loss in subsequent periods.

III. Short-term employee benefits

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

VI. Presentation and disclosure

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

<. Taxation

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

I. Current income tax

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

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

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

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

Deferred tax assets and liabilities are measured
based on the tax rates that are expected to
apply in the year when the asset is realised or
the liability is settled, based on tax rates (and tax
laws) that have been enacted or substantively
enacted at the reporting date.

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

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

The Company applies significant judgment
in identifying uncertainties over income tax
treatments. Uncertain tax positions are reflected
in the overall measurement of the Company's tax
expense and are based on the most likely amount
or expected value that is to be disallowed by the
taxing authorities whichever better predict the
resolution of uncertainty. Uncertain tax balances
are monitored and updated as and when new
information becomes available, typically upon
examination or action by the taxing authorities
or through statute expiration.

I n the situations where one or more units of
the Company are entitled to a tax holiday under
the tax law, no deferred tax (asset or liability) is
recognised in respect of temporary differences
which reverse during the tax holiday period,
to the extent the concerned unit's gross total
income is subject to the deduction during the

tax holiday period. Deferred tax in respect of
temporary differences which reverse after the
tax holiday period is recognised in the year in
which the temporary differences originate.
However, the Company restricts recognition of
deferred tax assets to the extent it is probable
that sufficient future taxable income will be
available against which such deferred tax assets
can be realised. For recognition of deferred
taxes, the temporary differences which originate
first are considered to reverse first.

L. Leases

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

I. Company as a lessee:

Right-of-use assets

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

The right-of-use assets are initially recognised at
cost, which comprises the initial amount of the
lease liability adjusted for any lease payments
made at or prior to the commencement date
of the lease plus any initial direct costs less
any lease incentives. They are subsequently
measured at cost less accumulated depreciation
and accumulated impairment losses, if any.
Right-of-use assets are depreciated from the
commencement date on a straight-line basis
over the shorter of the lease term and useful
life of the underlying asset:

for recoverability whenever events or changes
in circumstances indicate that their carrying
amounts may not be recoverable.

Lease liabilities

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

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

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

The lease term comprises the non-cancellable
lease term together with the period covered
by extension options, if assessed as reasonably
certain to be exercised, and termination options,
if assessed as reasonably certain not to be
exercised. For lease arrangement in respect
of ships, the non-lease components are not
separated from lease components and instead
account for each lease component, and any
associated non-lease component as a single
lease component.

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

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

Short-term leases and leases of low-value
assets

The Company applies the short-term lease
recognition exemption to its short-term leases
(i.e., those leases that have a lease term of 12
months or less from the commencement date).

It also applies the low-value asset recognition
exemption on a lease-by-lease basis, if the lease
qualifies as leases of low-value assets. In making
this assessment, the Company also factors
below key aspects:

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

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

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

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

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

II. Company as a lessor:

The determination of whether an arrangement is
(or contains) a lease is based on the substance
of the arrangement at the inception of the
lease. The arrangement is, or contains, a lease
if fulfilment of the arrangement is dependent
on the use of a specific asset or assets and the
arrangement conveys a right to use the asset
or assets, even if that right is not explicitly
specified in an arrangement. Leases are
classified as finance leases whenever the terms
of the lease transfer substantially all the
risks and rewards of ownership to the lessee.

All other leases are classified as operating
leases. Rental income from operating leases
is generally recognised on a straight-line basis
over the term of the relevant lease. Where the
rentals are structured solely to increase in line
with expected general inflation to compensate
for the Company's expected inflationary cost
increases, such increases are recognised in the
year in which such benefits accrue. Initial direct
costs incurred in negotiating and arranging
an operating lease are added to the carrying
amount of the leased asset and recognised on
a straight-line basis over the lease.

M. Government grants and subsidies including
duty credits/refunds

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

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

Where the grant relates to an asset, it is recognised
as income in equal amounts over the expected useful
life of the related asset.

When the Company receives grants of non-monetary
assets, the asset and the grant are recorded at fair
value amounts and released to the statement of profit
and loss over the expected useful life in a pattern of
consumption of the benefit of the underlying asset.

When loans or similar assistance are provided by
governments or related institutions, with an interest
rate below the current applicable market rate, the
effect of this favourable interest is regarded as a
government grant. The loan or assistance is initially
recognised and measured at fair value and the
government grant is measured as the difference
between the initial carrying value of the loan and
the proceeds received. The loan is subsequently
measured as per the accounting policy applicable to
financial liabilities.

Government grant receivables are discounted to
their present value. If the effect of the time value
of money is material, Government grant receivables

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

N. Earnings per share

Basic earnings per share is calculated by dividing the
net profit or loss attributable to equity holders of
parent company by the weighted average number of
equity shares outstanding during the period.

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

O. Foreign currencies translations

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

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

Non-monetary items which are carried in terms of
historical cost denominated in a foreign currency
are reported using the exchange rate at the date of
the transaction.

P. Cash and cash equivalents

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

Q. Dividend

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

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

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

S. Exceptional Items

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

3.1 Use of estimates and judgements

The preparation of the Company's financial
statements requires management to make
judgements, estimates and assumptions that affect
the reported amounts of revenues, expenses, assets
and liabilities, and the accompanying disclosures,
and the disclosure of contingent liabilities.
Uncertainty about these assumptions and estimates
could result in outcomes that require a material
adjustment to the carrying amount of assets or
liabilities affected in future periods.

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

The estimates and underlying assumptions are
reviewed on an ongoing basis. Revisions to
accounting estimates are recognised in the period
in which the estimate is revised if the revision affects
only that period, or in the period of the revision and
future period, if the revision affects current and
future period. Revisions in estimates are reflected
in the financial statements in the period in which
changes are made and, if material, their effects are
disclosed in the notes to the financial statements.

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

I. Classification of legal matters and tax
litigations (Refer Note 49)

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

II. Defined benefit obligations (Refer Note 51)

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

III. Useful life of property, plant and equipment
(Refer Note 4)

The charge in respect of periodic depreciation
is derived after determining an estimate of an
asset's expected useful life and the expected
residual value. Increasing an asset's expected
life or its residual value would result in a reduced
depreciation charge in the statement of profit
and loss. The useful lives of the Company's
assets are determined by management at the
time the asset is acquired and reviewed at least
annually for appropriateness. The lives are based
on historical experience with similar assets as

well as anticipation of future events, which may
impact their life, such as changes in technology.

IV. Impairment of Property, plant and
equipment (Refer Note 4)

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

V. Incentives under the State Industrial Policy
(Refer Note 12 and 20)

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

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

VI. Discounts / rebate to customers (Refer
Note 37)

The Company provides discount and rebates
on sales to certain customers. Revenue from
these sales is recognised based on the price
charged to the customer, net of the estimated
pricing allowances, discounts, rebates, and
other incentives. In certain cases, the amount of
these discount and rebates are not determined
until claims with appropriate evidence is
presented by the customer to the Company,
which may be some time after the date of
sale. Accordingly, the Company estimates the
amount of such incentives basis the terms
of contract, incentive schemes, historical

experience adjusted with the forward-looking,
business forecast and the current economic
conditions. To estimate the amount of
incentives, the Company uses the most likely
method. Such estimates are subject to the
estimation uncertainty.

VII. Physical verification of Inventory (Refer
Note 14)

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

VIII. For key estimates and judgements related to
fair values Refer Note 55.

3.2 New and Amended Standards:

The Ministry of Corporate Affairs (MCA) notified the
Ind AS 117, Insurance Contracts, vide notification
dated 12 August 2024, under the Companies (Indian
Accounting Standards) Amendment Rules, 2024,

which is effective from annual reporting periods
beginning on or after 1 April 2024.

i. Ind AS 117 Insurance Contracts is a
comprehensive new accounting standard for
insurance contracts covering recognition and
measurement, presentation and disclosure.
Ind AS 117 replaces Ind AS 104 Insurance
Contracts. Ind AS 117 applies to all types of
insurance contracts, regardless of the type of
entities that issue them as well as to certain
guarantees and financial instruments with

discretionary participation features; a few scope
exceptions will apply. Ind AS 117 is based on a
general model, supplemented by:

Ý A specific adaptation for contracts

with direct participation features (the

variable fee approach)

Ý A simplified approach (the premium

allocation approach) mainly for

short-duration contracts

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

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

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

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

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

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

Note:

(i) Accrued for Government incentive / Grants including tax credits / Refunds under various incentive schemes of State
and Central Government.

(ii) The Company is eligible for various incentives from the Government authorities as per the policies / schemes of
respective State / Central Government. Income from such Government incentive / grants including tax credits /
refunds has been disclosed separately in these standalone financial statements as "Government Grants including
duty credits/refunds” which earlier was disclosed / included as other operating revenue. This separate disclosure
has been given effect from the current year ended March 2025, and figures for previous year ended March 2024
have been accordingly regrouped / reclassified.

The Company was eligible for incentive in the form of exemption of Excise duty on captive consumption of clinker for
the period from February 2005 to February 2013 as per notification no. 67/95-CE dated March 16, 1995. The excise
authorities, Shimla had denied the above exemption to the Company and accordingly the Company paid the aforesaid
duty and expensed the duty amount in the respective earlier financial years. During the year ended March 31, 2025,
the Company received an order from the Office of The Assistant Commissioner - Central Goods and Service Tax,
Shimla Division dated November 27, 2024 allowing refund of amount paid against exemption of excise duty on
captive consumption of clinker by the Company pertaining to Darlaghat unit amounting to H189.52 crore. This refund
order is allowed pursuant to the order of the Regional bench of Hon'ble Customs, Excise and Service Tax Appellate
Tribunal, Chandigarh ("CESTAT”) on July 1, 2024 after the Hon'ble Supreme Court vide it's judgement dated March 03,
2016 had allowed the appeal in Company's favour which was subsequently denied by the department on different
grounds. Accordingly, a receivable amount of H189.52 crore is recognised as income during the year ended March 31,
2025 based on the refund order dated November 27, 2024 of The Assistant Commissioner - Central Goods and
Service Tax, Shimla Division, Himachal Pradesh.

(iii) During the year, the Company had accrued government incentive income of ' 138 crore relating to earlier years
in terms of West Bengal State Support Industries Scheme, 2013 ("WBSSIS 2013”) for the Company's Sankrail unit
after the Company assessed that it is reasonably certain to ultimately realise the incentive amount, basis internal
assessment backed up by independent legal opinion and Hon'ble Calcutta High court orders in a similar set of cases.
In a similar incentive claim dispute involving claims of ' 119 crore (involving unilateral change in policy by state
government) in respect of Company's incentive claim for Farakka plant, the Hon'ble Supreme Court in it's judgement
dated September 27, 2024 rejected the special leave petition submitted by West Bengal Industrial Development
Corporation (WBIDC) against the earlier favourable order of Hon'ble Calcutta High Court (directing state government
to honour its commitments as per applicable West Bengal Incentive Scheme, 2000). The Management of Company
expects that its above incentive claims will be fully realised over the period of time.

The Company had appealed against the penalty to the COMPAT which granted a stay on November 21, 2016
with a condition to deposit 10% of the penalty amount, in the form of fixed deposit (the said condition has
been complied with) and also decided to levy interest of 12% p.a. in case the appeal is decided against the
appellant (the "Interim order”). Interest amount on penalty as on March 31, 2025 is H1,140.04 crore (Previous
Year - H1,003.38 crore). Meanwhile, pursuant to the notification issued by Central Government on May 26,
2017, any appeal, application or proceeding before COMPAT is transferred to National Company Law Appellate
Tribunal (NCLAT).

NCLAT vide its order dated July 25, 2018, dismissed the Company's appeal and upheld the CCI's order.Against
the above order of NCLAT, the Company appealed before the Hon'ble Supreme Court on September 12, 2018,
which by its order dated October 05, 2018 had admitted the appeal and directed that the interim order
passed by the COMPAT will continue in the meantime. Presently, the matter is pending for hearing with
Hon'ble Supreme Court.

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

ii) I n a separate matter, the Director, Supplies and Disposal, Haryana filed information that seven cement
companies including the Company had allegedly engaged in collusive bidding in contravention of the
Competition Act, 2002. The CCI by its order dated January 19, 2017, imposed a penalty of H29.84 crore
(Previous year - H29.84 crore) on the Company.

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

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

c) Sales tax incentive relating to:

A matter relating to 75% exemption from Rajasthan Sales tax, granted by Government of Rajasthan in financial
year 2001-02. However, the eligibility of exemption in excess of 25% was contested by the State Government in
a similar matter of another Company.

In the year 2014, pursuant to the unfavourable decision of the Hon'ble Supreme Court in that similar matter, the
sales tax department initiated proceedings for recovery of differential sales tax and interest thereon on the ground
that the Company had given an undertaking to deposit the differential amount of sales tax, in case decision of
the Hon'ble Supreme Court goes against in this matter.

Against the total demand of H239.77 crore (net of provision of H8.20 crore), including interest of H134.45 crore
(March 31, 2024 - H239.77 crore, including interest of H134.45 crore) the Company had deposited H143.52 crore
in financial year 2014-15, including interest of H30.00 crore (March 31, 2024 - H143.52 crore, including interest of
H30.00 crore) towards sales tax under protest and filed a Special Leave Petition in the Hon'ble Supreme Court with
one of the grounds that the tax exemption was availed by virtue of the order passed by the Board for Industrial
& Financial Reconstruction (BIFR) during the relevant period. On Company's petition, the Hon'ble Supreme Court
has granted an interim stay on the balance interest. Based on the advice of external legal counsel, the Company
believes that, it has good grounds for a successful appeal on December 22, 2014. Accordingly, the amount has
been disclosed as contingent liability.

d) Excise, customs and service tax includes

A matter wherein service tax department issued show cause notices for denial of cenvat credit with regard to
service tax paid on outward transportation for sale to customers on Freight On Road (F.O.R.) during January 2005

to June 2017 basis, was classified as 'possible' and accordingly H174.68 crores was disclosed as contingent liability
as on March 31, 2024. In the current year, the Company has received favourable decisions by CESTAT, Delhi and
CESTAT, Ahmedabad in four identical cases of Ambuja Cement Limited basis which the Company has reassessed
it's position and determined that it has "remote" exposure with respect to these cases. Accordingly, pending cases
amounting to H161.85 crore has been classified from contingent liability to remote.

e) Demand for Stamp duty includes:

i) A matter wherein the Collector of Stamps, Delhi vide its order dated August 07, 2014, directed erstwhile Holcim
(India) Private Limited (HIPL) (merged with the Company) to pay stamp duty (including penalty) of H287.88
crore (March 31, 2024 - H287.88 crore) on the merger order passed by Hon'ble High Court of Delhi. HIPL (now
Ambuja Cements Limited) filed writ petition before Hon'ble Delhi High Court for setting aside/ quashing of the
order dated August 07, 2014 and the Hon'ble High Court of Delhi granted an interim stay . The matter was
classified as 'possible' and accordingly disclosed as contingent liability as on March 31, 2024. During the year
ended, March 31, 2025 the Hon'ble Delhi High Court vide its judgement dated November 06, 2024 allowed
the writ petition of Ambuja and set aside the impugned order.

Further, during the year the Collector of Stamps has filed Letter Patent Appeal in Delhi High Court against the
dismissal of writ petition and notice has been issued to Ambuja on April 02, 2025 for hearing on July 17, 2025
with respect to condonation of delay application, interim stay application and appeal filed by the department.

Considering the favourable order from Delhi High court, company has re-assessed it's position and determined
that it has "remote" exposure with respect to the case. Accordingly, the case has been classified from
contingent liability to remote.

ii) The High Court of Gujarat on March 18, 2014 sanctioned the scheme of amalgamation of Holcim India with
Ambuja Cement Limited (ACL) with an appointed date of April 01,2013. ACL paid H10.00 crore as stamp duty
based on the rate applicable on the appointed date. However, the maximum stamp duty was increased to
H25.00 crore in place of H10.00 crore through an amendment dated May 15, 2013. The Collector of Stamp
issued a show cause notice to ACL for not paying the deficit stamp amounting to H15.00 crore within the
stipulated time.

ACL filed a Stamp Reference before the Gujarat High Court and it vide order dated February 10, 2023 ruled
in favour of ACL, stating that the levy of stamp duty should be based on the appointed date and not the date
of the High Court's sanction. The Collector had no authority to impound the instrument or levy a penalty.
Aggrieved by the judgement of the High Court, Chief Controlling Revenue Authority has preferred a SLP on
August 26, 2023 before Hon'ble Supreme Court and the same is pending for adjudication.

f) Income tax

The Company was entitled to excise duty incentives on manufacturing of Cement and Clinker in certain states.
The Company has been contending that the said incentives are in the nature of capital receipts and hence not
liable to income tax. However, the Income tax department had consistently denied the position and considered
these incentives as a taxable receipt. Appeals were filed by the Company against the orders of the Assessing
Officer which were pending before the ITAT. In November 2022, the Company received favourable orders from ITAT.

Basis the favourable orders, at the Income Tax Appellate Tribunal (ITAT) level, excise duty incentive matter
amounting to H215.05 crore along with interest payable of H111.18 crore has been re-assessed as remote, which
were disclosed as contingent liability in March 2024.

g) Provident fund disputes

i) Regional Provident Fund Commissioner(RPFC) initiated enquiry under Section 7A of EPFO Act, 1952 for the
period December 2003 to December 2010. During the enquiry proceedings the enforcement officer (EO)
filed a preliminary report wherein EO recommended to pass an order for deposit of H25.42 crore on account

of PF contribution towards the transport workers engaged in the transportation business of the Company
at the Ropar plant. RPFC held that Company being the principal employer for transporter's engaged as
contract workmen with the Company and directed the EO to conduct further enquiry and submit final report.
Aggrieved by the RPFC's order, ACL filed a Writ Petition on February 10, 2025 before the Punjab and Haryana
High Court for setting aside the said order.

In separate proceedings for the period October 1995 to February 2007, RPFC vide its order dated July 30,
2022 assessed PF contribution of H28.63 crore in respect of Transport Worker at Darlaghat plant payable
by the Company. Appeal have been filed before CGIT Chandigarh and is pending for final adjudication
since May, 2024.

ii) Regional Provident Fund Commissioner passed an order on March 22, 2022 directing the Company to pay
H25.01 crore towards dues with respect to provident fund contributions under the EPF & MP Act. An inspection
report was submitted to RPFC, Jodhpur, requesting an order to raise a demand for non-payment/underpayment
of PF contributions for the mentioned heads, including transport workers at Rabriyawas plant. The main
finding pointed to discrepancies in the statement of accounts maintained by Ambuja cements Ltd and the
corresponding PF contributions for the period from November 2013 to August 2015. The inspectors viewed
transport workers as contract workers. Based on the inspection report, RPFC, Jodhpur initiated proceedings
under Section 7A of Employee's Provident fund Act, 1952 against the Company. The Company has filed a
writ petition challenging the final order before the Rajasthan High Court at Jodhpur. Interim stay vide order
dated April 27, 2022 is there in favour of the Company and the matter is pending for adjudication.

long-term returns in order to limit the cost to the Company of the benefits provided. To achieve this, investments
are well diversified, such that the failure of any single investment would not have a material impact on the overall
level of assets.

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

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

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

ii) Interest risk: A decrease in the bond interest rate will increase the plan liability; however, this will be partially
offset by an increase in the return on the plan's debt investments.

iii) Salary risk: The present value of the defined benefit plan liability is calculated by reference to the future
salaries of plan participants. As such, an increase in the salary of the plan participants will increase the
plan's liability.

iv) Longevity risk: The present value of the defined benefit plan liability is calculated by reference to the best
estimate of the mortality of plan participants both during and after their employment. An increase in the life
expectancy of the plan participants will increase the plan's liability.

c) Summary of the components of net benefit / expense recognised in the Statement of Profit and Loss, the funded
status and amounts recognised in the Balance Sheet for the respective gratuity plans is as under:

Other commitments:

The Company has secured the Fly Ash Utilisation and related compliance contract for a minimum 5 MTPA Fly Ash with
Adani Power Limited (a related party) for a period of 3 years subject to total validity of tender of 10 years.

Note 51 - Employee benefits

a) Defined contribution plans

Amount recognised and included in Note 43 "Contribution to Provident and Other Funds” of the Statement of
Profit and Loss H23.31 crore till December 31, 2024 (March 31, 2024 - H23.76 crore).

b) Defined benefit plans

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

The gratuity and provident fund plan (till December 31, 2024) is in the form of a trust and it is governed by the
Board of Trustees appointed by the Company. The Board of Trustees is responsible for the administration of the
plan assets including investment of the funds. The trust has developed policy guidelines for the allocation of
assets to different classes with the objective of controlling risk and maintaining the right balance between risk and

i) Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate,
expected salary increase and mortality. These sensitivities have been calculated to show the movement
in defined benefit obligation in isolation and assuming there are no changes in market conditions at the
reporting date. There have been no changes from the previous periods in the methods and assumptions used
in preparing the sensitivity analysis.

ii) The discount rate is based on the prevailing market yields of Government of India securities as at the Balance
Sheet date for the estimated term of the obligations.

iii) The estimates of future salary increases considered in actuarial valuation take account of inflation, seniority,
promotion and other relevant factors such as supply and demand in the employment market.

iv) Basis used to determine expected rate of return on assets

The Company has considered the current level of returns on policies declared by Life Insurance Corporation
of India (LIC), to develop the expected long-term return on assets for funded plan of gratuity.

v) In the absence of detailed information regarding plan assets which is funded with Life Insurance Corporation
of India (LIC), the composition of each major category of plan assets the percentage or amount for each
category to the fair value of plan assets has not been accordingly disclosed.

f) Provident Fund managed by a trust set up by the Company

Provident Fund for certain eligible employees is managed by the Company through a trust "Ambuja Cements Staff
Provident Fund Trust", in line with the Provident Fund and Miscellaneous Provisions Act, 1952. During the year
the Company has submitted the application to surrender the provident fund exemption under the Employees'
Provident Fund & Miscellaneous Provisions Act, 1952 on its own volition with effect from January 01, 2025,
with the relevant authorities. The same has been approved by the Employees Provident Fund Organisation on
provisional basis vide its letter dated January 27, 2025.

I n this regard, Company has provisionally determined the obligation as at December 31, 2024 amounting to
H110.78 crore. Accordingly an amount of H110.78 crore lying in the different classes of plan assets in the account
of Ambuja Cement Limited Staff Provident Fund Trust has been transferred to the account of the Central board
of trustees, Employees Provident Fund on provisional basis. The Company do not expect any additional liabilities
payable to Employees' Provident Fund Organisation (EPFO).

Subsequent to such transfer, w.e.f. January 1, 2025 the Company have started contributing its provident
fund obligation of the employer as well as of the employee on a monthly basis to Employees' Provident Fund
Organisation (EPFO).

The contribution by the employer and employee together with the interest accumulated thereon are payable to
employees at the time of separation from the Company or retirement, whichever is earlier. The benefits vests
immediately on rendering of the services by the employee.

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

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

ii) The Company had invested provident fund of H9.05 crore through a trust "Ambuja Cements Staff Provident Fund
Trust" in bonds of IL&FS Financial Services Limited and Diwan Housing Finance Limited. In view of uncertainties
regarding recoverability of this investments, during the year ended December 31,2019 the Company had provided
H9.05 crore being the change in re-measurement of the defined benefit plans, in Other Comprehensive Income
towards probable incremental employee benefit liability that may arise on the Group on account of any likely
shortfall of the Trust in meeting its obligations.

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

Note 56 - Financial risk management objectives and policies

The Company has a system-based approach to risk management, established policies and procedures and internal
financial controls aimed at ensuring early identification, evaluation and management of key financial risks such as
market risk, credit risk and liquidity risk that may arise as a consequence of its business operations as well as its
investing and financing activities. Accordingly, the Company's risk management framework has the objective of
ensuring that such risks are managed within acceptable and approved risk parameters in a disciplined and consistent
manner and in compliance with applicable regulations.

All derivative activities for risk management purposes are carried out by specialist teams that have the appropriate
skills, experience and supervision. It is the Company's policy that no trading in derivatives for speculative purposes
shall be undertaken.

The Company's management is supported by a risk management committee that advises on financial risks and the
appropriate financial risk governance framework for the Company. The risk management committee provides assurance
to the Company's management 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. The Board of Directors reviews policies for managing each of these risks.

A) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of
changes in market prices. Market risk comprises three types of risks a) commodity price risk b) currency risk and
c) interest rate risk. Financial instruments affected by market risk comprise deposits, investments, trade payables.

The Company's investments are predominantly held in fixed deposits and liquid mutual funds. Mark to market
movements in respect of the Company's investments are valued through the Statement of Profit and Loss.
Fixed deposits are held with highly rated banks and are not subject to interest rate volatility.

Assumption made in calculating the sensitivity analysis

The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks.
The analysis excludes the impact of movements in market variables on the carrying values of gratuity and other
post - retirement obligations and provisions.

a) Commodity Price risk

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

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

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

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

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

b) Foreign currency risk

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

The carrying amounts of the Company's foreign currency denominated monetary assets / liabilities at the end of
the reporting periods expressed in ', are as follows:

The Company does not have higher concentration of credit risks since no single customer accounted for 10% or
more of the Company's net sales.

Total trade receivable as on March 31, 2025 is H692.40 crore (March 31, 2024 - H693.26 crore).

Refer Note 16 for ageing of trade receivables.

Financial assets other than trade receivables

The exposure to the Company arising out of this category consists of balances with banks investments in liquid
mutual funds, incentives receivables from government and loans which do not pose any material credit risk.
Such exposure is also controlled, reviewed and approved by the management of the Company on routine basis.
There are no indications that defaults in payment obligations would occur in respect of these financial assets.

Credit risk on cash and cash equivalent. deposits with the banks / financial institutions is generally low as the
said deposits have been made with the banks / financial institutions who have been assigned high credit rating
by international and domestic credit rating agencies.

Investments of surplus funds are made only with approved financial Institutions. Investments primarily include
investment in units of liquid mutual funds and fixed deposits with banks having low credit risk.

Total non-current investments (other than subsidiaries and joint arrangements), Investments in liquid mutual funds
and Investments in Government securities as on March 31, 2025 are H9.65 crore, H1,998.02 crore and H347.63
crore (March 31, 2024 - H9.20 and H855.41 crore).

Incentives receivable from the Government

The Company has manufacturing units in various states; mainly those in Maharashtra, Rajasthan and Kolkata,
are eligible for incentives under the respective State Industrial Policy. The Company has been accruing these
incentives as refund claims in respect of VAT / GST paid.

Credit Impaired

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

Expected credit loss assessment

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

Note:

a) Other financial liabilities includes deposits received from customers amounting to H581.22 crore (March 31,
2024 - H546.52 crore). These deposits do not have a contractual re-payment term but are repayable on demand.
Since, the Company does not have an unconditional right to defer the payment beyond 12 months from reporting
date, these deposits have been classified under current financial liabilities. For including these amounts in the
above mentioned maturity analysis, the Company has assumed that these deposits including interest thereon,
will be repayable at the end of the next reporting period. The actual maturity period for the deposit amount
and the interest thereon can differ based on the date on which these deposits are settled to the customers.

b) Other financial liabilities includes Security deposit from dealers, Payable towards purchase of Property, plant
and equipment and Intangible assets (including hold and retention money), Purchase consideration payable
towards acquisition of subsidiary and others (Refer Note 34)

Note 57 - Segment reporting

The Principal business of the Company is manufacturing and sale of cement (incl. intermediatory products) and
cement related products. As per para 4 of Ind AS 108 "Operating Segments”, if a single financial report contains both
consolidated financial statements and the separate financial statements of the Holding Company, segment information
is required only in consolidated financial statements. Thus, the information related to disclosure of operating segments
required under Ind AS 108 "Operating Segments”, is given by the Company in Consolidated Financial Statements.

3. The Company do not have any charges or satisfaction which is yet to be registered with Registrar of Companies
(ROC) beyond the statutory period.

4. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

5. The Company has not advanced or loaned or invested funds to any other person or entity, 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.

6. The Company has not received any fund from any person or entity, including foreign entities (Funding Party) with
the understanding (whether recorded in writing or otherwise) that the Company 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.

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

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

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

10. The Company has not given any loans or advances in the nature of loans to promoters, directors, KMPs and/ or
related parties (as defined under Companies Act, 2013), either severally or jointly with any other person, that are
repayable on demand, or without specifying any terms or period of repayment other than disclosed in note 54.

Note 60 - Money received against Share Warrants

The Company had allotted 47,74,78,249 convertible warrants to Harmonia Trade and Investment Limited ("Harmonia”)
(a promoter group entity) on October 18, 2022, for an issue price of H418.87 per warrant. Out of total issue price,
H104.72 (25% of the issue price) per warrant was received as the initial subscription amount at the time of allotment
of the warrants. During the year ended March 31, 2024, out of 47,74,78,249 convertible warrants, Harmonia opted to
exercise and convert 21,20,30,758 warrants on March 28, 2024 by paying balance subscription amount of H314.15/-
per warrant (i.e. 75% of the issue price). The Company, on receipt of consideration of H6,660.96 crores (H314.15 per
warrant), made an allotment of 21,20,30,758 equity shares of face value of H2 each, at a premium of H416.87 per share
to Harmonia on March 28, 2024.

During the year ended March 31, 2025, Harmonia opted to exercise and convert balance 26,54,47,491 warrants by
paying balance subscription amount of H314.15 per warrant (i.e. 75% of the issue price) on April 15, 2024 and April 16,
2024. The Company, on receipt of consideration of H8,339.10 crore (H314.15 per warrant), has made allotment of
26,54,47,491 equity shares of face value of H2 each, at a premium of H416.87 per share to Harmonia on April 17, 2024.

Post successful completion of Offer for Sale, the Promoter Shareholding have reduced from 78.52% to 75% of the
Paid-up Equity Share Capital of Sanghi and Sanghi has achieved the MPS requirements, as mandated under Rules
19(2) (b) and 19A of the SCRR, read with Regulation 38 of the SEBI Listing Regulations.

Note 63 - Acquisition of Cement Grinding Unit in Tuticorin:

During the year ended March 31, 2025, the Company has entered into a definitive agreement with My Home Industries
Private Limited ("MHIPL') for acquisition of its 1.5 MTPA Cement Grinding Unit in Tuticorin, Tamil Nadu on slump sale
basis at a total value of H413.75 crore. The acquisition of the above unit is concluded on April 22, 2024.

The Company has concluded final determination of fair values of identified assets and liabilities for the purpose of
Purchase price allocation and based on the final fair valuation report of external independent expert.

Note 62 - Acquisition of Sanghi Industries Limited:

During the previous year ended March 31, 2024, the Company had completed acquisition of 14,08,21,941 equity shares
representing 54.51% of the equity share capital of Sanghi Industries Limited ("Sanghi") for a cash consideration of
H1,716.61 crores (@ H121.90 per share), pursuant to which, the Company has obtained control over Sanghi with effect
from December 7, 2023 ("acquisition date”). As per SEBI Regulations, the Company made open offer to the public
shareholders of Sanghi to acquire up to 6,71,64,760 equity shares, constituting 26% of the voting share capital of
Sanghi at a price of H121.90 per equity share, out of which 2,04,81,161 equity shares were acquired. Total shareholding
of the Company in Sanghi post-acquisition of shares from promoters and public shareholders through open offer
increased to 62.44%.

Post acquisition of shares from open market, the promoter and promoter group shareholding of Sanghi along with
holding of erstwhile promoters reached 80.52% which exceeded the minimum public shareholding norms.

Accordingly, in order to comply with minimum public shareholding norms as per listing regulations, during the year
ended March 31, 2024 the Company sold 51,66,000 equity shares in open market i.e. 2.00% of total paid up equity
share capital of Sanghi in March 2024 and incurred a loss of H15.82 crore.

During the year ended March 31, 2025, the Company and Mr. Ravi Sanghi (erstwhile promoter of Sanghi) further sold
60,92,000 and 30,00,000 equity shares of Sanghi respectively aggregating to 90,92,000 equity shares (representing
3.52% of the Paid-up Equity Share Capital of Sanghi) through offer for sale through stock exchange mechanism to
achieve minimum public shareholding (MPS) requirements.

The Company incurred a further loss of H12.89 crore in the process and such losses are disclosed as exceptional item
for the year ended March 31, 2024 and March 31, 2025 respectively.

Note 64 - Acquisition of Orient Cement Limited:

During the year ended March 31, 2025, the Board of Directors of the Company vide resolution dated October 22, 2024
approved acquisition of 7,76,49,413 equity shares of Orient Cement Limited ("Orient”) representing 37.90% of then
Share Capital from the promoters / promoter group of Orient and acquisition of 1,82,23,750 equity shares of Orient
representing 8.90% of then Share Capital from the certain public shareholders of Orient, for a consideration of H395.40
per share. For this purpose, the Company had executed a Share Purchase Agreement ("SPA”) dated October 22, 2024
with then promoters / promoter group and certain public shareholders of Orient.

Further, the Board of Directors also approved making an open offer for up to 5,34,19,567 equity shares at a price of
H395.40 per equity share to acquire up to 26% of expanded share capital (as defined under the offer documents in
relation to the open offer) of Orient from the public shareholders under the provisions of the Securities and Exchange
Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

The Competition Commission of India ("CCI”) vide its letter dated March 4, 2025 unconditionally approved the
acquisition of equity shareholding of then promoters / promoter group and certain public shareholders of Orient as
well as making an open offer to the public shareholders of Orient.

Subsequent to the year ended March 31, 2025 the Company has taken over operational and financial control over
Orient Cement Limited ("Orient”) with effect from April, 22 2025. and has completed the acquisition of 9,58,73,163

equity shares constituting 46.66% of the existing share capital of Orient on April 22, 2025 for a cash consideration of
H3,790.82 crores. As of now, the Company is awaiting the receipt of final observations from the Securities and Exchange
Board of India ("SEBI") on the draft letter of offer dated November 6, 2024, in relation to the Open Offer ("DLOF").
Upon receipt of the final observations from SEBI on the DLOF, the Company will proceed with the Open Offer process
as per the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The operational and financial
control over Orient was completed with effect from April, 22 2025.

Note 65 - Acquisition of Penna Cement Industries Limited:

During the year, the Company had acquired 13,37,15,000 equity shares of Penna Cement Industries Limited (PCIL)
equivalent to 99.94% stake from its existing promoter group for an agreed consideration of H4,298.94 crore (including
consideration of H700 crore held back which is payable upon completion of certain contractual obligation as per the
terms of Share Purchase Agreement (SPA)), subject to agreed terms in terms of SPA dated July 01, 2024. The Company
has obtained control over PCIL with effect from August 16, 2024 ("acquisition date”) on completion of compliance
and terms of SPA. As per SPA dated July 01, 2024 with the PCIL promoter group, the Company also agreed to acquire
residual 0.06% stake of 85,000 equity shares which is pending to be completed as of reporting date. PCIL has 14
MTPA capacity out of which 10 MTPA in Andhra Pradesh, Telangana & Maharashtra is operational and the remaining
4.0 MTPA in Andhra Pradesh and Rajasthan is under construction / development phase.

Pursuant to SPA, the Company has also invested H3,500 crore and H1,200 crore by subscribing 0.01% Optionally
Convertible Debentures (OCDs) of H10 each of PCIL and Marwar Cement Limited (wholly owned step-down subsidiary
of PCIL) respectively.

Note 66 - Amalgamation of Adani Cementation Limited:

During the year ended March 31, 2025, the Board of Directors of the Company ("Transferee Company" or "Company”)
has, vide its resolution dated June 27, 2024, approved the proposed Scheme of Amalgamation of Adani Cementation
Limited ("Transferor Company") with the Company and their respective shareholders and creditors ("proposed Scheme”)
pursuant to Sections 230 to 232 and other applicable provisions of the Companies Act, 2013 ("Act”).

The proposed Scheme is subject to necessary statutory and regulatory approvals under the applicable laws, including
approval of the Hon'ble National Company Law Tribunal, Ahmedabad Bench ("NCLT”).

As a consideration, Adani Enterprises Limited (the shareholder of Transferor Company) will be allotted 87,00,000
Equity Shares of Transferee Company as per Share Exchange Ratio i.e. 174 Equity Shares having face value of H2/- each
of Transferee Company for every 1 equity share having face value of H10/- each of Transferor Company, as determined
by independent valuer.

The appointed date for the Scheme is April 01, 2024. The Scheme will be effective on receipt of approval of the NCLT.
As on date of adoption of these standalone financial results by the Board, the Company has received observation letter
with "no adverse observation” from Bombay Stock Exchange Limited (BSE) and "no objection” from the National Stock
Exchange of India Limited (NSE) on January 1, 2025. As per the Order of the NCLT dated March 28, 2025, the meeting
of the equity shareholders of the Company is scheduled to be held on Friday, May 2, 2025 at 11:00 am (IST) through
video conference seeking approval on the arrangement embodied in the proposed Scheme.

Note 67 - Amalgamation of Sanghi Industries Limited and Penna Cement Industries Limited:

During the year ended March 31, 2025, the Board of Directors of the Company ("Transferee Company" or "Company”)
has, vide its resolutions dated December 17, 2024, approved -

i. The Scheme of arrangement between the Company's subsidiary Sanghi Industries Limited ("Transferor Company")
("Scheme 1”), the Company and their respective shareholders under Sections 230 to 232 and other applicable
provisions of the Companies Act, 2013 ("Act”) read with the rules framed thereunder w.e.f. appointed date
April 1, 2024.

ii. The Scheme of arrangement between the Company's subsidiary Penna Cement Industries Limited ("Transferor
Company") ("Scheme 2”), the Company and their respective shareholders under Sections 230 to 232 and other
applicable provisions of the Companies Act, 2013 ("Act”) read with the rules framed thereunder w.e.f. appointed date
August 16, 2024.

[Collectively the "Scheme 1” and "Scheme 2” be referred to as "Schemes”].

Upon the Scheme 1 becoming effective, the Transferee Company will issue and allot to the equity shareholders of
the Transferor Company (other than Transferee Company), 12 equity shares of the face value of H2 each fully paid of
Transferee Company, for every 100 equity shares of the face value of H10 each fully paid held by them in Transferor
Company and equity shares held by the Transferee Company shall stand cancelled and extinguished.

Upon the Scheme 2 becoming effective, the Transferee Company will pay, to the equity shareholders of the Transferor
Company (other than Transferee Company), whose names are recorded in the register of members on the Record
Date, cash consideration of H321.50 for every 1 fully paid-up equity share of H10 each held by them in the Transferor
Company and equity shares held by the Transferee Company (either directly or through nominees) at the effective
date shall stand cancelled.

The proposed Schemes are subject to necessary statutory and regulatory approvals under the applicable laws, including
approval of the jurisdictional Hon'ble National Company Law Tribunal, ("NCLT”).

As on date of adoption of these standalone financial results by the Board, the Company has filed proposed Schemes
with Bombay Stock Exchange Limited (BSE) and National Stock Exchange of India Limited (NSE) for obtaining
No-objection certificates ("NOC”). The Securities and Exchange Board of India (SEBI) has received the NOCs for the
scheme from both BSE and NSE and are yet to issue its NOC. As on the date of adoption of these financial results by
the Board, the process is still ongoing.

Note 68

In the financial year 2022-23, a short seller report ("SSR”) was published in which certain allegations were made on some
of the Adani Group Companies. During the previous financial year 2023-24, (a) the Hon'ble Supreme Court ("SC”) by its
order dated 3^rd January, 2024, disposed-off all matters of appeal relating to the allegations in the SSR (including other
allegations) and various petitions including those relating to separate independent investigations, (b) the SEBI concluded
its investigations in twenty-two of the twenty-four matters of investigation. Further, in the current year, the balance two
investigations have been concluded during the current year as per available information with the management. In respect
of these matters, the Company obtained legal opinions and Adani Group undertook independent legal & accounting review
based on which, the management of the Company concluded that there were no material consequences of the allegations
mentioned in the SSR and other allegations on the Company as at year ended March 31, 2024. There are no changes to the
above conclusions as at year ended 31^st March 2025 and accordingly, no adjustments is made in this regard.

Note 69

In November 2024, the Company's management became aware of an indictment filed by United States Department of
Justice (US DOJ) and a civil complaint by Securities and Exchange Commission (US SEC) in the United States District
Court for the Eastern District of New York against a non-executive director of the Company. The director is indicted on
three counts namely (i) alleged securities fraud conspiracy (ii) alleged wire fraud conspiracy and (iii) alleged securities
fraud for making false and misleading statements and as per US SEC civil complaint, director omitting material facts
that rendered certain statements misleading to US investors under Securities Act of 1933 and the Securities Act of
1934. The Company has not been named in these matters.

Having regard to the status of the above-mentioned matters, and the fact that the matters stated above do not pertain
to the Company, there is no impact to these standalone financial statements.

Note 70

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

Note 71 - Code on social Security, 2020

The code on Social Security, 2020 ('Code') relating to employee benefits during employment and post employment
benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India.
Certain sections of the Code came into effect on May 3, 2023. However, the final rules/interpretation have not yet
been issued. The Company will assess the impact of the Code when the final rules/interpretation comes into effect
and will record any related impact.

Note 72 - Financial information in respect of joint operation that is not material

The Company has interest in a joint operation "Wardha Valley Coal Field Private Limited". The Company's interest is
accounted on a line-by-line basis by adding together the book value of like items of assets, liabilities, income, expenses and
cash flow in the Standalone Financial Statements. Summarised financial information of the joint operation is given below:

Note 73

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

The Company has reclassified the cost of royalty on minerals amounting to H308.38 crore as Cost of material consumed
from classification under the other expenses. The reclassification of the cost of royalty on minerals has been given
effect from April 01, 2024. The change in value of captive coal inventories amounting to H23.77 crore have been
reclassified from changes in inventories to power and fuel expenses. The reclassification of the captive coal inventories
have been given effect for the year ended March 31, 2025. On such reclassification, figures for previous year ended
March 31, 2024 presented in standalone financial statements have been accordingly regrouped.

The Employee payables are also reclassified from trade payable to other financial liabilities (current) for better
presentation and such reclassification does not have any impact to net profits or on financial position presented in
the standalone financial statements. The reclassification of the employee payables has been given effect from the year
ended March 31, 2025 and accordingly figures for year ended March 31, 2024 amounting to H82.70 crore presented
in standalone financial statements have also been regrouped to other financial liabilities (current).

The Current and Non-Current Classification of components of Margin Money Bank Deposits have been re-classified
as at year ended March 31, 2025 based on the management assessment that such deposits are generally renewed on
maturity. Such deposits amounting to H864.58 crores as at March 31, 2024 have also been re-classified in the current
year for the purpose comparative disclosure.

Income from Government incentive / grants including tax credits / refunds amounting to H73.80 crore has been
disclosed separately in these standalone financial statements as "Government Grants including duty credits/refunds”.
The reclassification has been given effect during the year ended March 31, 2025 and accordingly figures for year ended
March 31,2024 presented in standalone financial statements have also been regrouped. This reclassification does not
have any impact on Company's financial statements.

Note 74

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

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

Note 75 - Figures below H50,000 have not been disclosed.

Note 76 - Events occuring after the Balance Sheet Date

The Company evaluates events and transactions that occur subsequent to the balance sheet date but prior to approval
of the financial statements to determine the necessity for recognition and / or reporting of any of these events and
transactions in the financial statements. As on April 29, 2025, there are no material subsequent events to be recognised
or reported, except as mentioned in Note 64.

The accompanying notes are an integral part of these standalone financial statements.

As per our report of even date attached

For S R B C & CO LLP For and on behalf of the Board of Directors of

Chartered Accountants Ambuja Cements Limited

ICAI Firm Registration No. 324982E/E300003

per Santosh Agarwal GAUTAM S. ADANI AJAY KAPUR VINOD BAHETY

Partner Chairman Managing Director Wholetime Director &

Membership Number: 093669 DIN: 00006273 DIN : 03096416 Chief Executive Officer

DIN: 09192400

RAKESH KUMAR MANISH MISTRY

TIWARY Company Secretary

Chief Financial Officer Membership No. F8373

Ahmedabad Ahmedabad

April 29, 2025 April 29, 2025