a. Corporate information

Balrampur Chini Mills Limited ("BCML" or "Company") having Corporate Identity Number ("CIN") L15421WB1975PLC030118 is a public limited company incorporated under the provisions of the Companies Act, domiciled in India. The Company's registered office is located at FMC Fortuna, 2^nd Floor, 234 / 3A, A. J. C. Bose Road, Kolkata - 700020, West Bengal, India.

The Company's equity shares are listed on the BSE Ltd. (BSE) and National Stock Exchange of India Ltd. (NSE).

The Company is one of the major integrated sugar manufacturing companies in India. The principal activity of the Company is manufacturing and sale of sugar. Besides this, the business activities of the Company primarily consist of manufacturing and sale of ethanol, ethyl neutral alcohol, agricultural fertilizers and generation and sale of cogenerated power.

The Company is a setting up manufacturing facility for Polylactic Acid (PLA), a bio-based polymer compostable under industrial conditions with expected commissioning of commercial production during the financial year ending 31^st March, 2027. During the current year, the Company has commenced trading of PLA products pending commencement of commercial manufacturing operations to get insights as well as develop the market.

lb. Basis of preparation Statement of compliance

These Standalone financial statements ("Standalone financial statements") have been prepared under Indian Accounting Standards ("Ind AS") prescribed under Section 133 of the Companies Act, 2013 ("the Act") read with the Companies (Indian Accounting Standards) Rules, 2015 (as amended from time to time) and other relevant provisions of the Act (to the extent notified) and presentation requirements of Division II of Schedule III to the Act, as applicable to the Standalone financial statements.

The Standalone financial statements for the year ended 31^st March, 2026 were approved for issue by the Company's Board of Directors on 15^th May, 2026 and are subject to adoption by the shareholders in the ensuing Annual General Meeting.

Ind AS issued and notified till the Standalone financial statements are approved for issue by the Board of Directors have been considered in preparing these Standalone financial statements.

Accounting policies have been consistently applied except where a newly issued Ind AS is initially adopted or a revision to an existing Ind AS requires a change in the accounting policy hitherto in use.

Going concern

The Board of Directors, at the time of approval of the standalone financial statements, has assessed the Company's ability to continue as a going concern and has a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the standalone financial statements have been prepared on a going concern basis.

Basis of measurement

These Standalone financial statements have been prepared under the historical cost convention and on accrual basis, except in respect of certain financial instruments and biological assets which are measured in terms of relevant Ind AS at fair value/ cost/ amortised cost, where applicable, at the end of each balance sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, irrespective of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or liability, the Company considers the characteristics of the asset or liability that market participants would take into account when pricing the asset or liability at the measurement date.

Fair value for measurement and/or disclosure purposes in these standalone financial statements is determined on the above basis, except for:

Ý share-based payment transactions within the scope of Ind AS 102,

Ý leasing transactions within the scope of Ind AS 116, biological assets within the scope of Ind AS 41, and

Ý measurements that have similarities to fair value but are not fair value, such as net realisable value as defined in Ind AS 2 or value in use as defined in Ind AS 36.

Current/ non - current classification

All the assets and liabilities (other than Deferred tax assets/ liabilities) have been classified as current or non-current as per Company's normal operating cycle and other criteria set out in Division II of Schedule III to the Act.

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash or cash equivalents.

The Company has identified its operating cycle as 12 months for current and non-current classification of assets and liabilities.

Deferred tax assets and liabilities are considered non-current.

Functional /presentation currency and rounding off of amounts

The items included in the Standalone financial statements (including notes thereon) are measured using the currency of the primary economic environment in which the Company operates ("the functional currency") and are, therefore, presented in Indian Rupees ("INR" or "Rupees" or "Rs." or " H"). ALL amounts disclosed in the Standalone financial statements, including notes thereon, have been rounded off to the nearest two decimals of Lakhs unless otherwise stated.

1c. Recent pronouncements

(i) New and revised standards adopted by the Company

During the year ended 31^st March 2026, the Ministry of Corporate Affairs (MCA) notified amendments to existing Indian Accounting Standards vide the Companies (Indian Accounting Standards) Amendment Rules, 2025 dated 7^th May, 2025 and the Companies (Indian Accounting Standards) Second Amendment Rules, 2025 dated 13^th August, 2025.

These amendments, to the extent relevant to the Company's operations, were relating to:

Ý Ind AS 21 "The Effects of Changes in Foreign Exchange Rates", introducing guidance for assessing Lack of exchangeabiLity between currencies, estimation of spot exchange rates where a currency is not exchangeabLe and reLated discLosure requirements, together with consequentiaL amendments to Ind AS 101 "First-time Adoption of Indian Accounting Standards";

Ý Ind AS 1 "Presentation of Financial Statements", including amendments relating to classification of LiabiLities as current or non-current and reLated discLosure requirements;

Ý Ind AS 7 "Statement of Cash Flows" and Ind AS 107 "Financial Instruments: Disclosures", introducing discLosure requirements reLating to suppLier finance arrangements;

Ý Consequential and editorial amendments in various standards including Ind AS 10 "Events after the Reporting Period", Ind AS 108 "Operating Segments", Ind AS 109 "Financial Instruments", and Ind AS 115 "Revenue from Contracts with Customers".

Revision in these standards did not have a material impact on the financial position, financial performance, cash flows or earnings per share of the Company for the year.

(ii) Standards issued but not yet effective

The Ministry of Corporate Affairs ("MCA") has notified amendments to Ind AS 1 "Presentation of Financial Statements" relating to classification of liabilities as current or non-current and non-current liabilities with covenants, which are effective for reporting periods beginning on or after 1^st April, 2026.

The amendments clarify that lender waivers obtained after the balance sheet date cannot be considered for classification of liabilities as current or non-current and require retrospective application in accordance with Ind AS 8.

The Company does not expect these amendments to have any material impact on its financial statements.

2. Material accounting policies

2.1 Operating and Other income

(a) Revenue from operations

Revenue from contracts with customers is recognised when the contract meets all of the following criteria in accordance with Ind AS 115 - Revenue from Contracts with Customers:

(i) The parties to the contract have approved the contract (in writing, orally, or in accordance with other customary business practices) and are committed to perform their respective obligations;

(ii) Each party's rights regarding the goods or services to be transferred are identifiable;

(iii) The payment terms for the goods or services to be transferred are identifiable;

(iv) The contract has commercial substance, i.e., the risk, timing or amount of the entity's future cash flows is expected to change as a result of the contract; and

(v) It is probable that the consideration to which the entity will be entitled in exchange for the goods or services will be collected.

Revenue is recognised upon satisfaction of the performance obligation when control over the goods or services is transferred to the customer. Control is considered to be transferred when the goods are delivered, or services are rendered to the customer. Delivery occurs when the goods have been shipped or delivered to a specific location and the customer has either accepted the goods under the contract or the Company has sufficient evidence that all the criteria for acceptance have been satisfied.

Revenue is measured at the amount of transaction price (consideration specified in the contract with the customers) allocated to that performance obligation. The transaction price of goods sold is net of variable consideration on account of discounts offered by the Company and excludes amounts collected on behalf of third parties.

The Company recognises revenue from the following major sources:

Ý Sale of sugar and its by-products, such as bagasse and pressmud;

Ý Sale of ethanol and extra neutral alcohol (ENA), Distiller's Dried Grains with Solubles (DDGS), CO2 and

dry ice;

Ý Sale of agricultural fertilisers;

Ý Sale of co-generated power; and

Ý Trading of Polylactic Acid (PLA) products.

Further details regarding the nature of performance obligations, timing of revenue recognition and significant payment terms are disclosed in Note no. 38(11).

(b) Other operating revenue

Other Operating Revenue primarily comprises income generated in the ordinary course of business from activities other than revenue from contracts with customers. Such revenue is recognised when the associated risks and rewards have been transferred to the counterparty, there is reasonable certainty of ultimate collection, and the amount of income can be measured reliably.

(c) Other income

(i) Interest income

Interest income is recognised, when no significant uncertainty as to measurability or collectability exists, on a time proportion basis taking into account the amount outstanding and the applicable interest rate, using the effective interest rate method (EIR). EIR is the rate that exactly discounts the estimated future cash payments or receipts over the expected life of the financial instrument or a shorter period, where appropriate, to the gross carrying amount of the financial asset. When calculating the EIR, the Company estimates the expected cash flows by considering all the contractual terms of the financial instrument (for example, prepayment, extension, call and similar options) but does not consider the expected credit losses.

Interest income is included in "Other income" in the standalone statement of profit and loss.

(ii) Dividend income

Dividend income is recognised when Company's right to receive the dividend is established, i.e., in the case of interim dividend, on the date of declaration by the Board of Directors; whereas in the case of final dividend, on the date of approval by the shareholders.

(iii) Insurance claims

Insurance claims are accounted for based on claims admitted/ expected to be admitted and to the extent that there is no uncertainty in receiving the claims.

2.2 Property, plant and equipment (“PPE") and Capital work-in-progress (“CWIP")

(a) Recognition and measurement

The cost of an item of property, plant and equipment is recognised as an asset if and only if it is probable that the future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably.

Property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses, if any. Capital work-in-progress are measured at cost less accumulated impairment losses, if any.

For this purpose, cost includes the deemed cost as at the date of transition to Ind AS and, in respect of assets acquired thereafter, the acquisition price including non-recoverable duties and taxes and any directly attributable costs of bringing an asset to the location and condition necessary for it to be capable of operating in the manner intended by management. In addition, borrowing costs incurred on funds used to finance the construction of qualifying assets are capitalised as part of the cost of the asset until such time as the asset is ready for its intended use.

The carrying amount of the replaced part of property, plant and equipment consequent to additions made thereto is derecognised. However, the costs of regular servicing of property, plant and equipment are recognised in the standalone statement of profit and loss as and when incurred.

The present value of the expected cost for the decommissioning of an asset after its use, if any, is included in the cost of the respective asset if the recognition criteria for provisions are met.

When significant parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate components. Otherwise, these are added to and depreciated over the useful life of the main asset.

(b) Transition to Ind AS

The cost of property, plant and equipment as at 1^st April, 2015, being the Company's date of transition to Ind AS, was determined with reference to its carrying value recognised as per the previous GAAP and treated as deemed cost, as at the date of transition to Ind AS.

(c) Subsequent expenditure

Costs incurred subsequent to initial capitalisation are included in the assets' carrying amount only when it is probable that future economic benefits will flow to Company and can be measured reliably.

(d) Property, plant and equipment comprise owned assets as well as right-of-use assets recognised in respect of leasehold land under lease arrangements in accordance with Ind AS 116.

(e) Depreciation methods, estimated useful lives and residual value

Depreciation on items of property, plant and equipment commences when the assets are available for their intended use. It is provided on a straight-line basis to allocate their cost, net of their residual value, over the estimated useful life of the respective asset specified under Schedule II to the Companies Act, 2013, except in respect of items of "Plant and equipment", whose estimated useful lives are determined based on technical assessment and evaluation made by the technical experts to reflect the actual usage of the assets and past history of its replacement, and certain items of "Vehicles", whose estimated useful lives are different from those prescribed under Schedule II to the Companies Act, 2013, based on management's estimate of their expected usage and replacement pattern.

The estimated useful lives considered are as follows:

The management believes that these estimated useful lives represent a realistic and reflect a fair approximation of the period over which the assets are likely to be used.

Each item of property, plant and equipment individually costing H5,000/- or less is depreciated over one year from the date the said asset is available for use.

The residual values of assets (individually costing more than H5,000/-) are not more than 5% of the asset's original cost.

The estimated useful lives, residual values and depreciation method are reviewed at least annually at each financial year-end and adjusted prospectively, wherever appropriate.

(f) Capital work-in-progress and treatment of expenditure during construction period:

Property, plant and equipment that are not ready for intended use on the balance sheet date are disclosed as "Capital work-in-progress". Advances paid towards acquisition/construction of property, plant and equipment outstanding at each balance sheet date are classified and disclosed as Capital advances under "Other noncurrent assets".

Directly attributable expenditures (including finance costs relating to borrowed funds for construction or acquisition of property, plant and equipment) incurred on projects under implementation are treated as preoperative expenses pending allocation to the assets and are shown under "Capital work-in-progress" until the assets are ready for their intended use.

(g) Derecognition

The cost and related accumulated depreciation and accumulated impairment losses, if any, are derecognised from the standalone financial statements upon sale or when no future economic benefits are expected to arise from the use of the asset and the resultant gains or losses are recognised in the standalone statement of profit and loss.

2.3 Intangible assets

(a) Recognition and measurement

Intangible assets are measured at cost, less accumulated amortisation and accumulated impairment losses, if any.

For this purpose, cost includes the deemed cost as at the date of transition to Ind AS, and, in respect of assets acquired thereafter, the acquisition price, license fees, non-refundable taxes, costs of implementation or system integration services, and any directly attributable expenses necessary to bring the asset to the location and condition required for its intended use, wherever applicable.

Where computer software is not an integral part of a related item of computer hardware, the software is recognised as an intangible asset.

(b) Subsequent expenditure

Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. AH other expenditure, is recognised in standalone statement of profit and loss as and when incurred.

(c) Amortisation methods, estimated useful lives and residual value

Computer software is amortised on a straight-line basis over its estimated useful life of five years from the date they are available for use.

The estimated useful lives, residual values and amortisation method are reviewed at least annually at each financial year-end and adjusted prospectively, wherever appropriate.

(d) Derecognition

An intangible asset is derecognised upon disposal or when no future economic benefits are expected from its use. The cost and related accumulated amortisation are eliminated from the standalone financial statements upon sale or retirement of the asset, and the resultant gains or losses are recognised in the standalone statement of profit and loss.

(e) Transition to Ind AS

The cost of intangible assets as at 1^st April 2015, being the Company's date of transition to Ind AS, was determined with reference to its carrying value recognised as per the previous GAAP and treated as deemed cost, as at the date of transition to Ind AS.

2.4 Inventories

(a) Inventories (other than By-products) are valued at lower of cost (after providing for obsolescence, if any) and net realisable value.

Cost comprises the purchase price, cost of conversion and other directly attributable costs incurred in bringing the inventories to their respective present location and condition. Borrowing costs are not included in the value of inventories. The cost of inventories is computed on a weighted average basis.

Net realisable value ("NRV") is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.

(b) By-products, which are saleable, are valued at an estimated net realisable value.

(c) Traded Goods / Stock-in-Trade

Traded goods (stock-in-trade) are valued at the lower of cost and net realisable value.

Cost includes purchase cost and other directly attributable expenses incurred to bring the goods to their present location and condition. Cost is determined on a weighted average basis.

2.5 Government grants

Government grants are recognised when there is reasonable assurance of receipt of the grant and compliance with the conditions attached to the grant as applicable, in accordance with Ind AS 20.

Government grants related to property, plant and equipment, including non-monetary grants, are presented in the standalone balance sheet by deducting the grant from the asset's carrying amount..

Government grants of revenue in nature are recognised on a systematic basis in the standalone statement of profit and Loss over the period necessary to match them with the related costs and are adjusted with the related expenditure. If not related to a specific expenditure, it is considered income and included under "Other operating revenue" or "Other income", as applicable.

The benefit of a government loan at a below-market rate of interest or loan with interest subvention is treated as a government grant. The loan or assistance is initially recognised at fair value in accordance with Ind AS 109. The government grant is measured as the difference between the proceeds received and the fair value of the loan determined using prevailing market interest rates and are recognised on a systematic basis in the standalone statement of profit and loss. The loan is subsequently measured in accordance with the accounting policy applicable to financial liabilities.

2.6 Borrowing costs

Borrowing costs that are directly attributable to the acquisition or construction of a qualifying asset are capitalised as part of the cost of such asset till such time that is required to complete and prepare the asset to get ready for its intended use. A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use. Borrowing costs consist of interest and other costs that the Company incurs in connection with the borrowing of funds.

In respect of borrowings for which the Company has entered into interest rate swap arrangements, net cash settlements arising on such swaps, being in substance an adjustment to the effective interest cost of the underlying borrowing, are recognised as finance cost. Accordingly, such net finance cost, including the impact of interest rate swaps, is considered for capitalisation to the extent it is directly attributable to the qualifying asset.

Fair value changes (including mark-to-market movements) of derivative instruments are recognised in the Statement of Profit and Loss and are not considered as borrowing costs for the purpose of capitalisation.

All other borrowing costs are charged to the standalone statement of profit and Loss in the period in which they are incurred.

2.7 Leases

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.

The Company's lease asset class comprise leases of land. At the inception of a contract, the Company assesses whether the arrangement is, or contains, a lease. A contract is considered to be, or to contain, a lease if it conveys the right to control the use of an identified asset for a period of time in exchange for consideration. In determining the lease term, the Company considers periods covered by extension or termination options where it is reasonably certain that such options will be exercised.

To determine whether a contract conveys the right to control the use of an identified asset, the Company evaluates whether:

(i) the contract involves the use of a specifically identified asset;

(ii) the Company obtains substantially all the economic benefits from the use of the asset during the lease term; and

(iii) the Company has the right to direct the use of the asset throughout the lease term.

At the date of commencement of the lease, the Company recognises a right-of-use asset ("ROU asset") and a corresponding lease liability for all lease arrangements in which it is a lessee, except for short-term leases (leases with a term of twelve months or less) and low-value assets. For such short-term or low-value leases, the lease payments are recognised as an expense on a straight-line basis over the lease term.

The lease liability is initially measured at the present value of future lease payments and is subsequently measured at amortised cost using the effective interest method. Interest on lease liabilities is recognised in finance costs. Lease payments are discounted using the interest rate implicit in the lease, or if that rate cannot be readily determined, the Company's incremental borrowing rate.

Right-of-use assets are initially recognised at cost, comprising the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs incurred and less any lease incentives received. Subsequently right-of-use assets are measured at cost less accumulated depreciation and accumulated impairment losses, if any.

Right-of-use assets relating to leasehold land are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and the useful life of the underlying asset.

Right-of-use assets are presented within Property, Plant and Equipment, and lease liabilities are presented separately under financial liabilities in the Balance Sheet.

2.8 Provisions, contingent liabilities and contingent assets

(a) A provision is recognised when, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are not recognised for future operating losses.

The amount recognised as a provision is the best estimate of the expenditure required to settle the present obligation as at the balance sheet date, taking into account the risks and uncertainties surrounding the obligation.

Where some or all of the expenditure required to settle a provision is expected to be reimbursed by a third party, the reimbursement is recognised as a separate asset only when it is virtually certain that reimbursement will be received. The expense relating to a provision is presented in the Standalone Statement of Profit and Loss net of any reimbursement.

(b) Contingent Liabilities are disclosed in respect of possible obligations that arise from past events, but their existence 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 present obligations arising from past events where it is not probable that an outflow of economic benefits will be required to settle the obligation, or a reliable estimate of the amount of the obligation cannot be made.

(c) Contingent asset is not recognised in the standalone financial statements; however, is disclosed where an inflow of economic benefits is probable.

(d) Provisions, Contingent liabilities and Contingent assets are reviewed at each balance sheet date and adjusted to reflect the current best estimate.

2.9 Dividend

Final dividends on equity shares are recognised as a liability in the period in which they are approved by the shareholders. Interim dividends are recognised as a liability in the period in which they are declared by the Board of Directors.

Accordingly, the corresponding amount of dividend is recognised as a distribution directly in equity.

2.10 Foreign currency transactions and translations

In preparing the standalone financial statements of the Company, transactions in currencies other than the Company's functional currency are recognised on initial recognition at the rates of exchange prevailing on the dates of the transactions.

Monetary assets and liabilities related to foreign currency transactions remaining outstanding on the balance sheet date are translated at the exchange rate prevailing on the balance sheet date. Any income or expense arising on foreign exchange difference either on settlement or on translation is recognised in the standalone statement of profit and loss.

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

Capital commitments denominated in foreign currencies are disclosed at the contracted amount in the foreign currency and translated into the functional currency using the closing exchange rate as at the balance sheet date. Such disclosures are made in the notes to the standalone financial statements.

2.11 Employee benefits

(a) Short-term employee benefits

Short-term employee benefits in respect of salaries and wages, including non-monetary benefits, are recognised as an expense at the undiscounted amount in the standalone statement of profit and Loss in the year in which the related service is rendered. A liability is recognised for the amount expected to be paid, if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

(b) Defined contribution plans

The Company pays provident and other fund contributions to publicly administered funds as per related Government regulations.

The Company has no further obligation other than the contributions payable to the respective funds. The Company recognises contribution payable to such funds as an expense when an employee renders the related service.

(c) Defined benefit plans

The Company operates a defined benefit gratuity plan and the contribution towards it is made to "The Balrampur Sugar Company Limited Employees Gratuity Fund" ("the Trust"). The Trust is administered by trustees and has obtained gratuity policies from insurance companies to fund the gratuity obligations of the Company.

The liability or asset recognised in the standalone balance sheet in respect of gratuity is the present value of the defined benefit obligation as at the balance sheet date less the fair value of plan assets. The defined benefit obligation is determined by external actuaries using the projected unit credit method.

Re-measurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised directly in other comprehensive income in the period they occur and are subsequently transferred to Retained earnings.

(d) Other long-term employee benefits - compensated absences

The employees of the Company are entitled to compensated absences that are both accumulating and non-accumulating in nature. The expected cost of accumulating compensated absences is determined by external actuaries using the projected unit credit method for the unused entitlement accumulated at the balance sheet date.

Re-measurements gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in profit or loss in the period they occur. The obligations are presented as current liabilities in the standalone balance sheet if the Company does not have an unconditional right to defer the settlement for at least twelve months after the balance sheet date.

(e) Share-based payment arrangements

Equity settled share-based payment arrangements granted to eligible employees under the "BCML Employees Stock Appreciation Rights Plan 2023" ("ESAR 2023"/ "Plan") and the "BCML Restricted Stock Unit Scheme 2025" ("RSU 2025" or "Scheme") are measured at the fair value of the equity instruments granted, determined at the grant date. The fair value is recognised as an employee benefits expense, in the profit or loss with a corresponding increase in equity, over the vesting period.

The increase in equity recognised in respect of equity settled share-based payment transaction as aforesaid is presented as a separate component within equity under "Share options outstanding account". The amount recognised as an expense is adjusted to reflect the number of rights/ units expected to be vested over the period. To the extent that services received from employees are directly attributable to the acquisition or construction of a qualifying asset, the corresponding share-based payment cost is capitalised as part of the cost of such asset in accordance with applicable Ind AS.

Estimates are subsequently revised if there is any indication that the number of rights/ units expected to vest differs from previous estimates. Any adjustment to cumulative share-based compensation resulting from a revision is recognised in the period in which they occur.

The amount recognised as an expense is also adjusted to reflect the number of rights/ units for which the related service and non-market performance conditions are expected to be met, such that the amount ultimately recognised is based on the number of rights/units that meet the related service and non-market performance conditions at the vesting date.

When the terms of an equity-settled rights are modified, the minimum expense recognised by the Company is the grant date fair value of the unmodified award, provided the vesting conditions (other than a market condition) specified on grant date of the rights/ units are met. Further, additional expense, if any, is measured and recognised as at the date of modification, in case such modification increases the total fair value of the share-based payment plan.

Upon exercise of the rights/ units, the proceeds received are credited to equity share capital and the related balance standing to the credit of the share options outstanding account are transferred to securities premium.

If vested awards are lapsed or remain unexercised, the amounts previously recognised in the "Share options outstanding account" are not reversed but are transferred to General reserve.

2.12 Financial instruments

Financial assets and financial liabilities are recognised in the standalone balance sheet when the Company becomes a party to the contractual provisions of financial instruments. The Company determines the classification of its financial assets and financial liabilities at initial recognition based on its nature and characteristics.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The Company categorises financial assets and financial liabilities measured at fair value into one of three levels depending on the ability to observe inputs employed for such measurement:

(i) Level 1: Quoted prices (unadjusted) in active markets for identical financial assets or financial liabilities that

the Company can access at the measurement date.

(ii) Level 2: Inputs other than quoted prices included within level 1 observable for the financial asset or

financial liability, either directly or indirectly.

(iii) Level 3: Unobservable inputs for the financial asset or financial liability.

a. Financial assets

i) Initial recognition and measurement

The financial assets include investments, trade receivables, loans and advances, cash and cash equivalents, bank balances other than cash and cash equivalents, derivative financial instruments and other financial assets.

Financial assets (unless it is a trade receivable without a significant financing component) are initially measured at fair value. Transaction costs directly attributable to the acquisition or issue of financial assets (other than financial assets at fair value through profit or loss) are added to or are deducted from the fair value of the financial assets as appropriate on initial recognition. However, trade receivables that do not contain a significant financing component are measured at transaction price.

ii) Subsequent measurement

For the purpose of subsequent measurement, financial assets are classified in the following categories:

(i) at amortised cost,

(ii) at fair value through other comprehensive income (FVTOCI), or

(iii) at fair value through profit or loss (FVTPL).

(a) Financial assets at amortised cost

A 'financial asset' is measured at the amortised cost if the following two conditions are met:

(i) The asset is held within a business model whose objective is to hold the asset for collecting contractual cash flows, and

(ii) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Amortised cost is determined using the Effective Interest Rate ("EIR") method. Discount or premium on acquisition and fees or costs forms an integral part of the EIR.

(b) Financial assets at fair value through other comprehensive income (FVOCI)

Financial assets are measured at fair value through other comprehensive income if these financial assets are held both for collection of contractual cash flows and for selling the financial assets and contractual terms of the financial assets give rise to cash flows representing solely payments of principal and interest.

(c) Financial assets at fair value through profit or loss (FVTPL)

Financial assets that are not classified in any of the categories above are classified at fair value through profit or loss.

(d) Equity investments

Equity investments in the scope of Ind AS 109 are measured at fair value except for investment in associate, which are carried at cost.

The Company makes an irrevocable election to present in other comprehensive income subsequent changes in the fair value. The Company makes such election on an instrument-by-instrument basis. The classification is made on initial recognition and is irrevocable.

If Company decides to classify an equity instrument at fair value through other comprehensive income (FVTOCI), then all fair value changes on the instrument are recognised in other comprehensive income and accumulated in a separate component of equity.

Dividends on investments in equity instruments are recognised in profit or loss in accordance with Ind AS 109 and are included under 'Other income'.

The cumulative gain or loss is not reclassified to profit or loss on disposal of the equity investments, instead, it is transferred within the Equity.

iii) De-recognition

The Company derecognises a financial asset only when the contractual rights to the cash flows from the asset expires or transfers the financial asset and substantially all the risks and rewards of ownership of the asset.

b. Financial liabilities

i) Initial recognition and measurement

The financial liabilities include trade and other payables, loans and borrowings, including book overdrafts, derivative financial instruments, etc.

Financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial liabilities (other than financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial liabilities, as appropriate, on initial recognition.

ii) Subsequent measurement

For subsequent measurement, financial liabilities are classified into two categories:

(i) Financial liabilities at amortised cost, and

(ii) Derivative instruments at fair value through profit or loss (FVTPL).

Financial liabilities at amortised cost

After initial recognition, financial liabilities are subsequently measured at amortised cost using the EIR method, as applicable. When the financial liabilities are derecognised, gains and losses are recognised in profit or loss. Discount or premium on acquisition and fees or costs forms an integral part of the EIR.

iii) De-recognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires.

c. Derivative financial instruments

Initial recognition and subsequent measurement

Derivative financial instruments, including forward currency contracts and interest rate swaps, are used to manage exposures to foreign currency risk and interest rate risk, respectively, in accordance with the Company's risk management policy. Such instruments are not held for speculative purposes.

Derivative financial instruments are initially recognised at fair value on the date on which the derivative contract is entered into and are subsequently re-measured at fair value at each balance sheet date.

Derivatives are recognised as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.

The Company does not apply hedge accounting in respect of its derivative contracts. Accordingly, all fair value changes are recognised in profit or loss.

In respect of interest rate swaps entered into in relation to borrowings, the net cash settlements under such contracts are considered, based on their substance, as an adjustment to the effective interest cost of the underlying borrowing and are recognised as part of finance costs. The capitalisation of such finance costs is governed by the Company's policy on borrowing costs.

d. Offsetting of financial instruments

Financial assets and financial liabilities, including derivative financial instruments, are offset and the net amount is reported in the standalone balance sheet if there is currently an enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis or to realise the assets and settle the liabilities simultaneously.

e. Equity share capital

Ordinary shares are classified as Equity.

An equity instrument is a contract that evidences a residual interest in the Company's assets after deducting all its liabilities.

Incremental costs directly attributable to the issuance of new equity shares and buy-back of equity shares are shown as a deduction from the Equity net of any tax effects.

2.13 Impairment of Assets

(a) Non-financial assets

An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value, less costs of disposal and its value in use.

To assess impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units).

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.

If, at the balance sheet date, there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the impairment loss previously recognised is reversed so that the asset is recognised at its recoverable amount but not exceeding the value which would have been reported in this respect if the impairment loss had not been recognised.

(b) Financial assets

The Company recognises loss allowances using the Expected Credit Loss ("ECL") model for financial assets measured at amortised cost.

2.14 Income taxes

Income tax expense comprises current tax and deferred tax. It is recognised in the profit or loss except to the extent that it relates to items directly recognised in Equity or Other comprehensive income (OCI).

The Company has determined that interest and penalties related to income taxes do not meet the definition of income taxes. Accordingly, such amounts, including those relating to the current year, are recognised as an expense in accordance with Ind AS 37 - Provisions, Contingent Liabilities and Contingent Assets.

(a) Current tax

Current tax comprises the expected income tax payable or receivable on the taxable profit or loss for the year, along with any adjustments relating to prior periods. It is determined based on the best estimate of the amount expected to be paid to, or recovered from, the taxation authorities, using the tax rates and laws enacted or substantively enacted as at the balance sheet date.

In correlation to the underlying transaction relating to Other comprehensive income and Equity, current tax items are recognised in Other comprehensive income and Equity, respectively.

Management periodically evaluates positions taken in the tax returns to situations in which applicable tax regulations are subject to interpretation. Accordingly, based on management estimates, provisions are made where appropriate based on the amount expected to be paid to the tax authorities.

The Company offsets current tax assets and current tax liabilities, where it has a legally enforceable right to set off the recognised amounts and where it intends either to settle on a net basis or to realise the assets and settle the liabilities simultaneously.

(b) Deferred tax

Deferred tax assets and liabilities are recognised in respect of temporary differences between the carrying amounts of assets and liabilities and the corresponding amounts used for taxation purposes. Deferred tax is also recognised in respect of carried forward tax losses and tax credits.

Deferred tax assets and liabilities are measured at 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 as at the balance sheet date.

Deferred tax assets are recognised for deductible temporary differences, the carry forward of unused tax credits (MAT)and any unused tax losses to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, unused tax credits and unused tax losses can be utilised.

The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised.

Deferred tax items in correlation to the underlying transaction relating to Other comprehensive income and Equity are recognised in Other comprehensive income and Equity, respectively.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

(c) Minimum Alternate Tax (MAT)

Deferred tax assets include Minimum Alternative Tax ("MAT") paid under the tax laws in India, which is expected to give rise to future economic benefits in the form of availability of set-off against future income tax liability.

MAT credit is recognised as a deferred tax asset in the standalone balance sheet when it can be measured reliably and it is probable that the future economic benefit associated with the asset will be realised. The carrying amount of MAT credit is reviewed at each balance sheet date and written down to the extent it is no longer probable that sufficient future taxable profits will be available to allow utilisation of such credit.

2.15 Earnings per Share

(a) Basic earnings per share

Basic earnings per share are computed by dividing the net profit after tax attributable to equity shareholders by the weighted average number of outstanding equity shares during the year.

(b) Diluted earnings per share

Diluted earnings per share are computed by dividing the net profit after tax attributable to equity shareholders (as used in determination of basic earnings per share) after adjusting the effect of interest and other financing costs or income (net of attributable taxes) associated with dilutive potential equity shares by the weighted average number of equity shares outstanding during the year considered for deriving basic earnings per share adjusted for the weighted average number of equity shares that could be issued on the conversion of all dilutive potential equity shares.

2.16 Segment reporting

Operating segments are identified and reported based on the manner in which the Company's Chief Operating Decision Maker ("CODM") reviews operating results for the purpose of resource allocation and performance assessment. Segments are identified having regard to the different risks and returns, the organisational structure and the internal reporting systems.

2.17 Cash and cash equivalents

Cash and cash equivalents in the standalone balance sheet comprise cash on hand, cheques on hand, balances with banks and short-term highly liquid investments with an original maturity of three months or less that are readily convertible to known amounts of cash and are subject to insignificant risk of changes in value.

For the purpose of reporting Standalone Statement of Cash Flows, cash and cash equivalents consist of cash on hand, cheques on hand, balance with banks and short term highly liquid investments, as stated above, net of outstanding book overdrafts, as they are considered an integral part of the Company's cash management.

2.18 Statement of Cash Flows

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals, or accruals of past or future operating cash receipts or payments and items of income or expenses associated with investing or financing flows.

Cash flows from operating, investing and financing activities are presented separately in the Standalone Statement of Cash Flows.

2.19 Exceptional items

Exceptional items comprise income or expenses arising from ordinary activities that are of such significance and nature that separate disclosure is considered necessary to explain the performance of the Company.

Such items are identified based on their size, nature or incidence so as to facilitate comparison with prior periods and to enable users of the Standalone Financial Statements to better understand underlying trends in financial performance.

3. Use of critical estimates, judgements and assumptions

The preparation of the Standalone financial statements in conformity with the measurement principle under Ind AS requires the management to make estimates, judgements and assumptions. These estimates, judgements and assumptions affect the application of accounting policies and the reported amounts of revenue, expenses, assets and liabilities including the accompanying disclosures and the disclosure of contingent assets and liabilities.

The estimates, judgements and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

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 and future periods affected.

The application of accounting policies that require critical judgements and accounting estimates involving complex and subjective judgements and the use of assumptions in these Standalone financial statements have been disclosed herein below.

(i) Estimated useful life of property, plant and equipment

Property, plant and equipment represent a significant proportion of the Company's asset base. The depreciation charge for the period is determined after estimating the useful life of each asset and its residual value at the end of its useful life.

The useful lives and residual values of assets are determined by management at the time of acquisition and are reviewed at least annually at each financial year-end.

The estimated useful lives are based on technical evaluation, technological obsolescence, historical experience with similar assets and expectations regarding future events that may impact their useful lives. Any reassessment of useful lives or residual values may result in a change in depreciation expense in future periods.

(ii) Current taxes and deferred taxes

Significant judgement is required in determining the taxability of certain income and the deductibility of certain expenses while estimating the provision for income taxes. Judgement is also required in assessing the option to apply reduced tax rates, including the potential impact of transition to a new tax regime, cessation of tax incentives and the utilisation or expiry of Minimum Alternate Tax (MAT) credit entitlements, based on estimates of future taxable profits.

Deferred tax assets, including MAT credit, are recognised for unused tax losses (including carry forward of losses of earlier years) and unused tax credits to the extent that it is probable that future taxable profits will be available against which such losses and credits can be utilised. In the event of transition to a tax regime where MAT credit is not available for set-off, the recoverability of such credit is reassessed.

Significant judgement is required in determining the amount of deferred tax assets that can be recognised, particularly in respect of MAT credit balances, based on the expected timing and level of future taxable profits, together with future tax planning strategies.

The carrying amount of deferred tax assets and liabilities is reviewed at each balance sheet date and adjusted to reflect current estimates. Deferred tax assets, including MAT credit, are written down to the extent it is no longer probable that sufficient future taxable profits will be available for their utilisation. Any change in the carrying amount is recognised in the statement of profit and loss or in other comprehensive income, as appropriate.

(iii) Retirement benefit obligations

The Company's retirement benefit obligations, including the cost of defined benefit gratuity plan and the present value of the defined benefit gratuity obligation are determined using actuarial valuations carried out by an independent actuary. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These assumptions include, among others, the determination of the discount rate, expected inflation, future salary increments and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. ALL actuarial assumptions are reviewed at-least annually at each financial year-end.

(iv) Fair value measurements of financial instruments

The fair value of financial instruments that are not traded in an active market and cannot be determined using quoted prices is measured using appropriate valuation techniques including the Discounted Cash Flow (DCF) method.

The Company uses judgement in seLecting vaLuation techniques and determining assumptions, which are primariLy based on market conditions existing at the baLance sheet date.

The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair values. Judgments include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair vaLue of financiaL instruments.

(v) Provisions, Contingent liabilities and Contingent assets

The recognition, measurement and disclosure of provisions, contingent liabilities and contingent assets require the application of judgement to existing facts and circumstances, which may change upon the occurrence or non-occurrence of future events.

Judgement is required in estimating the likelihood and magnitude of potential outflows of resources in respect of contingencies, claims and litigations against the Company, as well as potential inflows of resources in respect of cLaims made by the Company that are considered contingent in nature.

These estimates are reviewed at each balance sheet date and adjusted to reflect the current best estimate.

(vi) Equity settled share-based payment transactions

The cost of the Company's equity settled share-based payment to its employees are determined based on fair vaLue of the underLying equity instruments granted on the grant date and the number of awards expected to vest.

Judgement is involved in the assessment of service conditions and non-market performance conditions. Estimates are revised, where necessary, with the effect of such revisions recognised in the statement of profit and Loss in the period of revision.

To the extent that services received from empLoyees are directLy attributabLe to the acquisition or construction of a quaLifying asset, the corresponding share-based payment cost is capitaLised as part of the cost of such asset in accordance with appLicabLe Ind AS.