2.1 Basis of preparation and presentation

The Standalone financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) notified
under the Section 133 of the Companies Act, 2013 (“the Act”), Companies (Indian Accounting Standards) Rules, 2015, along
with the presentation requirements of Division II of Schedule III to the Act (Ind-AS compliant Schedule III), relevant amendment
rules issued thereafter and other relevant provisions of the Act, as applicable.

The Standalone financial statements have been prepared on the historical cost basis except for certain financial instruments
including derivative financial instrument that are measured at fair values at the end of each reporting period, Equity settled
ESOP at grant date fair value, Defined benefit plans, and on accrual basis.

The Company has prepared the Standalone Financial Statements on the basis that it will continue to operate as a going
concern.

2.2 Current and Non-Current

The Company presents assets and liabilities in the balance sheet based on current/non-current classification. An asset is
treated as current when it is:

• expected to be realised or intended to be sold or consumed in normal operating cycle

• held primarily for the purpose of trading

• expected to be realised within twelve months after the reporting period, or

• cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after
the reporting period

All other assets are classified as non-current.

A liability is current when:

• it is expected to be settled in normal operating cycle

• it is held primarily for the purpose of trading

• it is due to be settled within twelve months after the reporting period, or

• there exists no right at the end of the reporting period to defer settlement of the liability for at least twelve months after
the reporting period.

The terms of the liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments
do not affect its classification.

The Company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as 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.

2.3 Fair value measurement

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, regardless of whether that price is directly observable or estimated using another
valuation technique. In estimating the fair value of an asset or a Liability, the Company takes into account the characteristics of
the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at
the measurement date. Fair value for measurement and/or disclosure purposes in these financial statements is determined on
such a basis, except for share-based payment transactions that are within the scope of Ind AS 102, leasing transactions that
are within the scope of Ind AS 116, and measurements that have some similarities to fair value but are not fair value, such as
net realisable value in Ind AS 2 or value in use in Ind AS 36.

In addition, for financial reporting purposes, fair value measurements are categorized into Level 1, 2, or 3 based on the degree to
which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement
in its entirety, which are described as follows:

• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access
at the measurement date;

• Level 2 inputs are inputs other than quoted prices included within Level 1, that are observable for the asset or liability,
either directly or indirectly; and

• Level 3 inputs are unobservable inputs for the asset or liability.

2.4 Revenue recognition

Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer at
an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services.
The Company has generally concluded that it is the principal in its revenue arrangements, because it typically controls the
goods or services before transferring them to the customer. The disclosures of significant accounting judgements, estimates
and assumptions relating to revenue from contracts with customers are provided in para 2.28.1.

a) Sale of goods is recognised net of returns and trade discounts, volume discounts, scheme allowances and price concessions
(as specified in the contracts with customers) when the control over the goods is transferred to the customers. Accruals
for discounts/incentives are estimated using the most likely method based on accumulated experience and underlying
schemes and agreements with customers (refer para 2.28.1). The performance obligation in case of sale of goods is
satisfied at a point in time i.e., when the goods are shipped to the customers or on delivery to the customer, as per
applicable terms.

b) The Company recognizes subsidy income as per Ind AS 20 ‘Accounting for Government Grants and Disclosure of
Government Assistance’ on the basis of the rates notified from time to time by the Government of India in accordance
with the Nutrient Based Subsidy (NBS) policy on the quantity of fertilisers sold by the Company for the period for which
notification has been issued and for the remaining period, based on estimates, when there is a reasonable assurance that
the Company will comply with all necessary conditions attached to Subsidy.

Further, as required by Ind AS 20, the Company matches subsidy income with related costs which the subsidy is intended
to compensate and accordingly, subsidy income is recognized over a period on a systematic basis to match it with the
related costs and on satisfaction of relevant conditions.

c) Income from services rendered is recognised based on the agreements/arrangements with the concerned parties and
when services are rendered by measuring progress towards satisfaction of performance obligation for such services.

d) Export benefits and other excise benefits are accounted for on accrual basis.

e) 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. Trade Receivable represents the
Company’s right to an amount of consideration that is unconditional.

f) A contract liability is recognised if a payment is received or a payment is due (whichever is earlier) from a customer before
the Company transfers the related goods or services. Contract liabilities are recognised as revenue when the Company
performs under the contract (i.e., transfers control of the related goods or services to the customer).

2.5 Other Income

a) Dividend income from investments is recognised in the year in which the right to receive the payment is established.

b) 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.

2.6 Leases

As a Lessee: The Company, at the inception of a contract, assesses whether the contract is a lease or not lease. A contract
is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a time in exchange for a
consideration.

The Company recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is
initially measured at cost, which comprises 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 an estimate of costs to dismantle and remove the
underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line basis over the shorter of the lease term and the
estimated useful life of the assets from the commencement date to the end of the lease term. In addition, the right-of-use asset
is periodically reduced by impairment losses, if any, and adjusted for certain re-measurements of the lease liability.

At the commencement date of the lease, the Company recognises lease liabilities measured at the present value of lease
payments to be made over the lease term. The lease payments include fixed payments (including in substance fixed payments)
less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be
paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably
certain to be exercised by the Company and payments of penalties for terminating the lease, if the lease term reflects the
Company exercising the option to terminate. Variable lease payments that do not depend on an index or a rate are recognised
as expenses (unless they are incurred to produce inventories) in the period in which the event or condition that triggers the
payment occurs.

In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the lease commencement
date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of
lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the
carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease
payments (e.g., changes to future payments resulting from a change in an index or rate used to determine such lease payments)
or a change in the assessment of an option to purchase the underlying asset.

The Company has elected not to recognise right-of-use assets and lease liabilities for short-term leases that have a lease term
of 12 months or less and leases of low-value assets. The Company recognises the lease payments associated with these leases
as an expense over the lease term.

2.7 Functional and presentation currency

Items included in the financial statements of the Company are measured using the currency of the primary economic environment
in which the entity operates (i.e., the “functional currency”). The financial statements are presented in Indian Rupee (^), the
national currency of India, which is the functional currency of the Company and rounded to the nearest Lakhs.

2.8 Foreign currencies

Foreign currency transactions are recorded at exchange rates prevailing on the date of the transaction or at rates that closely
approximate the rate at the date of transactions. The date of transaction for the purpose of determining the exchange rate
on initial recognition of the related asset, expense or income (part of it) is the date on which the entity initially recognises
the non-monetary asset or non-monetary liability arising from payment or receipt of advance consideration. Foreign currency
denominated monetary assets and liabilities are restated into the functional currency using exchange rates prevailing on the
balance sheet date. Gains and losses arising on settlement and restatement of foreign currency denominated monetary assets
and liabilities are recognised in the statement of profit and loss. Non-monetary assets and liabilities that are measured in terms
of historical cost in foreign currencies are not translated.

2.9 Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial
period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset. All other borrowing
costs are expensed in the period in which they occur. Borrowing costs consist of interest and other costs that an entity incurs
in connection with the borrowing of funds. Borrowing cost also includes exchange differences to the extent regarded as an
adjustment to the borrowing costs.

2.10 Employee benefits

2.10.1 Defined contribution plans

Contributions paid/payable to defined contribution plans comprising of Superannuation (under a scheme of Life Insurance
Corporation of India) and Provident Funds for certain employees covered under the respective Schemes are recognised in the
profit or loss each year when employees have rendered service entitling them to the contributions.

2.10.2 Defined benefit plans

The Company’s Gratuity scheme for its employees is a defined benefit retirement plan. Obligation under the gratuity scheme is
covered under a Scheme of Life Insurance Corporation of India (LIC) and ICICI Prudential Life Insurance Company Limited (ICICI)
and contributions in respect of such scheme are recognized in the profit or loss. The liability as at the Balance Sheet date is
provided for using the projected unit credit method, with actuarial valuations being carried out as at the end of the year.

The Company makes contribution to a Provident Fund Trust for certain employees, at a specified percentage of the employees’
salary. The Company has an obligation to make good the shortfall, if any, between the return from the investments of trust and
the notified interest rates. Liability on account of such shortfall, if any, is provided for based on the actuarial valuation carried
out as at the end of the year.

Defined benefit costs are categorized as follows:

• service cost (including current service cost, past service cost, as well as gains and losses on curtailments and settlements);

• net interest expense or income; and

• remeasurement

The Company presents the first two components of defined benefit costs in profit or loss in the line item ‘Employee benefits
expense’. Curtailment gains and losses are accounted for as past service costs. Net interest is calculated by applying the
discount rate at the beginning of the period to the net defined benefit liability or asset.

Remeasurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable) and the
return on plan assets (excluding net interest), is reflected immediately in the balance sheet with a charge or credit recognised
in other comprehensive income in the period in which they occur. Remeasurement recognised in other comprehensive income
is reflected immediately in retained earnings and is not reclassified to profit or loss.

2.10.3 Short-term employee benefits

Short term employee benefits including accumulated compensated absences as at the Balance Sheet date are recognised as
an expense as per Company’s schemes based on expected obligation on an undiscounted basis.

2.10.4 Other long-term employee benefits

Other Long term employee benefit is provided for based on the actuarial valuation carried out as at the end of the year and as
per statutory requirements.

Liabilities recognised in respect of other long-term employee benefits are measured at the present value of the estimated future
cash outflows expected to be made by the Company in respect of services provided by employees up to the reporting date.

2.11 Share-based payment arrangements

Equity-settled share-based payments to employees providing similar services are measured at the fair value of the equity
instruments at the grant date.

The fair value determined at the grant date of the equity-settled share-based payments is expensed on a straight-line basis
over the vesting period, based on the Company’s estimate of equity instruments that will eventually vest, with a corresponding
increase in share-based payments reserve. At the end of each reporting period, the Company revises its estimate of the number
of equity instruments expected to vest. The impact of the revision of the original estimates, if any, is recognised in profit or loss
such that the cumulative expense reflects the revised estimate, with a corresponding adjustment to the share-based payments
reserve.

Service and non-market performance conditions are not taken into account when determining the grant date fair value of
awards, but the likelihood of the conditions being met is assessed as part of the Company’s best estimate of the number of
equity instruments that will ultimately vest. Market performance conditions are reflected within the grant date fair value.
Any other conditions attached to an award, but without an associated service requirement, are considered to be non-vesting
conditions. Non-vesting conditions are reflected in the fair value of an award and lead to an immediate expensing of an award
unless there are also service and/or performance conditions.

2.12 Earnings per share

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

For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders of
the Company and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive
potential equity shares.

2.13 Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

• Current 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.

Current income tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other
comprehensive income or in equity). Current tax items are 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 considers whether it is probable that a taxation
authority will accept an uncertain tax treatment. The Company shall reflect the effect of uncertainty for each uncertain
tax treatment by using either most likely method or expected value method, depending on which method predicts better
resolution of the treatment.

• Deferred tax

Deferred tax is recognised using balance sheet approach on temporary differences between the carrying amounts of
assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable
profit. Deferred tax liabilities are recognised for all taxable temporary differences. Deferred tax assets are recognised for
all deductible temporary differences to the extent that it is probable that taxable profits will be available against which
those deductible temporary differences can be utilized. Such deferred tax assets and liabilities are not recognised if the
temporary difference arises from the initial recognition (other than in a business combination) of assets and liabilities in
a transaction that affects neither the taxable profit nor the accounting profit and does not give rise to equal taxable and
deductible temporary differences

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that
it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has
become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the
liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted
by the end of the reporting period.

The Company offsets deferred tax assets and deferred tax liabilities if and only if it has a legally enforceable right to set
off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income
taxes levied by the same taxation authority on either the same taxable entity which intends either to settle current tax
liabilities and assets on a net basis, or to realise the assets and settle the liabilities simultaneously, in each future period
in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.

2.14 Property, plant and equipment and Capital Work in Progress

Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any.
Cost includes purchase price, attributable expenditure incurred in bringing the asset to its working condition for the intended
use and cost of borrowing till the date asset is ready for its intended use or sale in the case of assets involving material
investment and substantial lead time.

Properties in the course of construction for production, supply or administrative purposes are carried at cost, less any recognized
impairment loss. Depreciation of these assets, on the same basis as other property assets, commences when the assets are
ready for their intended use.

Depreciation is provided on straight-line method as per the useful life prescribed in Schedule II to the 2013 Act except in
respect of following categories of assets in whose case the life of certain assets has been assessed based on technical advice
taking into account the nature of the asset, the estimated usage of the asset, the operating condition of the asset, past history
of replacement, maintenance support etc.

The estimated useful Lives, residual values and depreciation method are reviewed at the end of each reporting period, with
the effect of any changes in estimate accounted for on a prospective basis. Assets individually costing ^ 5,000 and below are
depreciated over a period of one year. Land is not depreciated.

An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are expected to
arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and
equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised
in profit or loss.

On transition to Ind AS, the Company elected to continue with the carrying value of all Property, plant and equipment measured
as per the previous GAAP and use that carrying value as the deemed cost of Property, plant and equipment.

Capital work in progress: Projects under which assets are not ready for their intended use are carried at cost, net of accumulated
impairment loss if any. Cost comprises direct cost and attributable interest. Once it becomes available for use, their cost is re¬
classified to appropriate caption and subjected to depreciation

2.15 Intangible assets and Intangible Assets under Development

Intangible assets acquired separately are measured on initial recognition at cost. Intangible assets are carried at cost, net of
accumulated amortization and accumulated impairment losses, if any. Cost of an intangible asset comprises of purchase price
and attributable expenditure on making the asset ready for its intended use.

Intangible assets are amortized on the straight-line method. Technical know-how is an acquired asset amortized over their
estimated useful lives ranging from 5-10 years and product registration is an internally generated asset amortized over the
period of the registration.

The estimated useful lives, residual values and amortisation method are reviewed at the end of each reporting period, with the
effect of any changes in estimate accounted for on a prospective basis.

An intangible asset is derecognized on disposal, or when no future economic benefits are expected from use or disposal. Gains
or losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and
the carrying amount of the asset, are recognized in profit or loss when the asset is derecognized.

Intangible assets under development is stated at cost, net of accumulated impairment loss, if any.

2.16 Investments in Subsidiaries, Associates and Joint Ventures

A Subsidiary is an entity that is controlled by the Company.

An Associate is an entity over which the Company has significant influence. Significant influence is the power to participate in
the financial and operating policy decisions of the investee but is not control or joint control over those policies.

A Joint Venture is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights to the
net assets of the joint venture. Joint control is the contractually agreed sharing of control of an arrangement, which exists only
when decisions about the relevant activities require unanimous consent of the parties sharing control.

The Company’s investments in its subsidiaries, associates and joint ventures are accounted at cost less impairment.

2.17 Impairment

• Property, Plant and Equipment, Capital Work in Progress, Intangible assets and Intangible Assets under Development

The Company assesses at each reporting date whether there is an indication that an asset/cash generating unit may
be impaired. If any indication exists the Company estimates the recoverable amount of such assets and if the carrying
amount exceeds the recoverable amount, impairment is recognized in profit or loss. The recoverable amount is the higher
of Fair value less costs of disposal and its value in use. In assessing value in use, the estimated future cash flows are
discounted to their present value using an appropriate discount factor. When there is indication that previously recognized
impairment loss no longer exists or may have decreased such reversal of impairment loss is recognized in the profit or
loss.

• Impairment of Investments

The Company reviews its carrying value of investments carried at cost (net of impairment, if any) annually, or more
frequently when there is indication for impairment. If the recoverable amount is less than its carrying amount, the
impairment loss is accounted for in the statement of profit and loss. The recoverable amount is the higher of Fair value
less costs of disposal and its value in use. In assessing value in use, the estimated future cash flows are discounted to
their present value using an appropriate discount factor.

2.18 Inventories

Inventories consist of raw materials, stores and spares, work-in-progress, traded goods & packing materials and finished
goods and are valued at the lower of cost and net realisable value. Net realisable value represents the estimated selling price
(including subsidy income, where applicable) of inventories less all estimated costs of completion and costs necessary to make
the sale.

Costs incurred in bringing each product to its present location and condition are accounted for as follows:

1. Raw material, stores and spares and packing materials: Cost includes cost of purchase and other costs incurred in bringing
the inventories to their present location and condition. Cost is determined on monthly moving weighted average cost.

2. Finished goods and Work-in-process: Cost includes cost of direct materials and labour and a proportion of manufacturing
overheads based on the normal operating capacity but excluding borrowing costs. Cost is determined on monthly moving
weighted average cost of production.

3. Traded Goods: Cost includes cost of purchase and other costs incurred in bringing the inventories to their present location
and condition. Cost is determined on monthly moving weighted average cost.

2.19 Cash and Cash equivalents

Cash comprises cash on hand, in bank and demand deposits with banks and with financial institutions. The Company considers
all highly liquid financial instruments, which are readily convertible into cash and have original maturities of three months or
less from the date of purchase, to be cash equivalents. Such cash equivalents are subject to insignificant risk of changes in
value.