2 Material Accounting Policies:

This note provides a list of the material accounting policies adopted in the preparation of the standalone
financial statements. These policies have been consistently applied to all the years presented, unless
otherwise stated.

i) Statement of Compliance:

The standalone financial statements have been prepared in accordance with the Indian Accounting
Standards (Ind AS) as per the Companies (Indian Accounting Standards) Rules, 2015 as amended
from time to time, notified under section 133 of the Companies Act, 2013, (“Act”) and other relevant
provisions of the Act.

ii) Basis of preparation:

The standalone financial statements have been prepared under the historical cost convention with the
exception of certain assets and liabilities that are required to be carried at fair values as per Ind AS.
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.

iii) Use of estimates and critical accounting judgements:

In preparation of the standalone financial statements, the Company makes judgements, estimates
and assumptions about the carrying values of assets and liabilities that are not readily apparent from
other sources. The estimates and the associated assumptions are based on historical experience and
other factors that are considered to be relevant. Actual results may differ from these estimates. The
estimates and the 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.
Significant judgements and estimates relating to the carrying values of assets and liabilities include
useful lives of property, plant and equipment and intangible assets, impairment of property, plant and
equipment, intangible assets and investments, provision for employee benefits and other provisions,
recoverability of deferred tax assets, commitments and contingencies.

iv) Revenue Recognition:
i) Sale of Products

Revenue is recognised when the performance obligations have been satisfied, which is once
control of the goods is transferred from the Company to the customer.

Cement: Revenue related to the sale of goods is recognised when the product is delivered to the
destination specified by the customer, and the customer has gained control through their ability
to direct the use of and obtain substantially all the benefits from the asset. Revenue is measured
based on consideration specified in the contract with a customer which is measured at the fair
value of the consideration received or receivable, net of returns and allowances, trade discounts
and volume rebates and excludes amounts collected on behalf of third parties.

Power: Revenue from sale of power is recognized net of wheeling and banking charges, line
losses and the selling costs.

ii) Other income

Interest income is recognized on time proportion basis taking into account the amount outstanding
and the rate applicable.

v) Borrowing Costs:

Borrowings costs directly attributable to the acquisition, construction or production of qualifying assets,
which are assets that necessarily take a substantial period of time to get ready for their intended use
or sale, are added to the cost of those assets, until such time as the assets are substantially ready
for the intended use or sale. Investment income earned on the temporary investment of specific
borrowings pending their expenditure on qualifying assets is deducted from the borrowing cost eligible
for capitalization. Other borrowing costs are expensed in the period in which they are incurred.

vi) Employee Benefits:

(i) Short-term obligations

Liabilities for wages and salaries, including non-monetary 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 recognized in respect of employees' services up to the end of the reporting period and
are measured at the amounts expected to be paid when the liabilities are settled. The liabilities
are presented as current employee benefit obligations in the balance sheet.

(ii) Other long-term employee benefit obligations

The liabilities for earned leave is not expected to be settled wholly within 12 months after the end
of the period in which the employees render the related service. They are therefore measured
at the present value of expected future payments to be made in respect of services provided
by employees up to the end of the reporting period using the projected unit credit method. The
benefits are discounted using the market yields at the end of the reporting period that have
terms approximating to the terms of the related obligations. Remeasurements as a result of the
experience adjustments and changes in actuarial assumptions are recognized in profit or loss.
The obligations are presented as current liabilities in the balance sheet if the entity does not have
an unconditional right to defer settlement for at least twelve months after the reporting period,
regardless of when the actual settlement is expected to occur.

(iii) Gratuity obligations

The liabilities or assets recognized in the balance sheet in respect of gratuity plans is the present
value of the defined benefit obligation at the end of the reporting period less the fair value of plan
assets. The defined benefit obligation is calculated annually by actuaries using the projected unit
credit method. The present value of the defined benefit obligation is determined by discounting the
estimated future cash outflows by reference to market yields at the end of the reporting period on
government bonds that have terms approximating to the terms of the related obligation. The net
interest cost is calculated by applying the discount rate to the net balance of the defined benefit
obligation and the fair value of plan assets. This cost is included in employee benefit expense
in the statement of profit and loss. Remeasurement gains and losses arising from experience
adjustments and changes in actuarial assumptions are recognized in the period in which they occur,

directly in other comprehensive income. They are included in retained earnings in the statement
of changes in equity and in the balance sheet. Changes in the present value of the defined benefit
obligation resulting from plan amendments or curtailments are recognized immediately in profit
or loss.

(iv) Defined contribution plans

The Company pays provident fund contributions to publicly administered funds as per local
regulations and super annuation fund to LIC of India. The Company has no further payment
obligations once the contributions have been paid. The contributions are accounted for as defined
contribution plans and the contributions are recognized as employee benefit expense when they
are due.

(v) Bonus plans

The Company recognizes a liability and an expense for bonuses. The Company recognizes
a provision where contractually obliged or where there is a past practice that has created a
constructive obligation.

vii) Income Taxes:

Tax expense for the year comprises current and deferred tax.

Current Tax is the amount of tax payable on the taxable income for the year as determined in accordance
with the applicable tax rates and the provisions of the Income-tax Act, 1961 and other applicable tax
laws that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax is recognised 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 generally recognised for all taxable temporary differences.
Deferred tax assets are generally 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 utilised. Such deferred tax assets and liabilities are not recognised if the temporary differences
arise 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. In addition, deferred tax
liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill.

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

Tax relating to items recognized directly in equity or other comprehensive income is recognised in
equity or other comprehensive income and not in the Statement of Profit and Loss.

Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax
liabilities and assets and they are related to income taxes levied by the same tax authority, but they
intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be
realized simultaneously.

viii) Property, plant and equipment (PPE):

Property, plant and equipment are carried at cost less accumulated depreciation and impairment
losses, if any. The cost of property, plant and equipment comprises of purchase price, applicable duties
and taxes, any directly attributable expenditure on making the asset ready for its intended use, other
incidental expenses and interest on borrowings attributable to acquisition of qualifying fixed assets,
upto the date the asset is ready for its intended use. All other repair and maintenance costs, including
regular servicing, are recognised in the statement of profit and loss as incurred. When a replacement
occurs, the carrying value of the replaced part is de-recognised. Where an item of property, plant and
equipment comprises major components having different useful lives, these components are accounted
for as separate items.

Property, Plant and equipment retired from active use and held for sale are stated at the lower of their
net book value and net realizable value and are disclosed separately.

An item of property, plant and equipment is derecognised 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.

ix) Intangible Assets:

Intangible assets acquired separately are measured on initial recognition cost

x) Depreciation and amortisation expenses:

Depreciation is the systematic allocation of the depreciable amount of PPE over its useful life and is
provided on the straight line method over the useful lives as prescribed in Schedule II to the Act.

The estimated useful lives of Property, Plant and Equipment are as follows:

Intangible assets are amortized on straight line method based on the estimated useful lives.

The amortized period and amortization method are reviewed at each financial year end.

Cost of compensatory land (intangibles)paid/ transferred to Government in lieu of forest land diverted
for mining and free hold land for mining is amortized over the tenure of the mining lease. Cost of ERP
Software is amortized over a period of four years.

xi) Expenditure during construction period:

Expenditure during construction period (including finance cost related to borrowed funds for construction
or acquisition of qualifying PPE) is included under Capital Work-in-Progress and the same is allocated
to the respective PPE on the completion of their construction. Advances given towards acquisition
or construction of PPE outstanding at each reporting date are disclosed as Capital Advances under
“Other non-current Assets”.

xii) Impairment of Assets:

Intangible assets and property, plant and equipment are evaluated for recoverability whenever events
or changes in circumstances indicate that their carrying amounts may not be recoverable. For the
purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell
and the value-in-use) is determined on an individual asset basis unless the asset does not generate
cash flows that are largely independent of those from other assets. In such cases, the recoverable
amount is determined for the Cash Generating Unit (CGU) to which the asset belongs. If such assets
are considered to be impaired, the impairment to be recognized in the statement of profit and loss is
measured by the amount by which the carrying value of the assets exceeds the estimated recoverable
amount of the asset. An impairment loss is reversed in the statement of profit and loss if there has been
a change in the estimates used to determine the recoverable amount. The carrying amount of the asset
is increased to its revised recoverable amount, provided that this amount does not exceed the carrying
amount that would have been determined (net of any accumulated amortization or depreciation) had
no impairment loss been recognized for the asset in prior years.

xiii) Inventories:

Raw Materials, Fuel, Stores & Spares and Packing Materials

These inventories are valued at lower of cost and net realizable value (NRV). However, these items are
considered to be realizable at cost, if the finished products, in which they will be used, are expected
to be sold at or above cost, Cost is determined on weighted Average basis.

Materials in Transit:

Valuation of Inventories of Materials in Transit is done at Cost.

Work-in-Progress (WIP) and Finished Goods

These inventories are valued at lower of cost and NRV. Cost of Finished Goods and WIP includes
cost of raw materials, cost of conversion and other costs incurred in bringing the inventories to their
present location and condition. Cost of inventories is computed on weighted average basis.