A. Property, plant and equipment & capital work-in-progress

• Recognition and measurement

Property, plant and equipment are tangible items that are held for use in the production or supply for goods and services, rental to
others or for administrative purposes and are expected to be used during more than one period.

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

Freehold lands are stated at cost. All other items of property, plant and equipment are stated at cost, net of recoverable taxes less
accumulated depreciation, and impairment loss, if any.

The cost of an asset includes the purchase cost of material, including import duties and non-refundable taxes, and directly attributable
costs of bringing an asset to the location and condition of its intended use and trial run expenditure (Net of amount realised on goods
produced during trial run). For this purpose, cost includes carrying value as Deemed cost on the date of transition. Interest on borrowings
used to finance the construction of qualifying assets are capitalised as part of the cost of the asset until such time that the asset is ready
for its intended use.

Items of spare parts, stand-by equipment and servicing equipment which meet the definition of property, plant and equipment are
capitalized. Other spare parts are carried as inventory and recognized in the statement of profit and loss on consumption. When parts of
an item of PPE have different useful lives, they are accounted for as separate component.

The carrying amount of an item of Property, Plant and Equipment shall be derecognised on disposal or when no future economic
benefits are expected from its use or disposal. When significant parts of Property, Plant and Equipment are required to be replaced
at intervals, the Company derecognizes the carrying amount of replaced parts and recognized the new parts with own associated
useful life and it is depreciated accordingly. Likewise when a major repair is performed, its cost is recognised in carrying amount of the
plant and equipment as a replacement, if recognition criteria are satisfied. All other repair and maintenance costs are recognised in the
Statement of Profit and Loss as 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 a provision are met.

The cost and related accumulated depreciation are eliminated from the financial statement upon sale or retirement of the asset and
resultant gain or losses are recognized in the Statement of Profit and Loss.

Assets identified and technically evaluated as obsolete are retired from active use and held for disposal are stated at the lower of its
carrying amount and fair value less cost to sell.

Capital work-in-progress, representing expenditure incurred in respect of assets under development and not ready for their intended use,
are carried at cost. Cost includes related acquisition expenses, construction cost, related borrowing cost and other direct expenditure,
and trial run expenditure.

• Subsequent Expenditure

Subsequent expenditure is capitalized only if it is probable that the future economic benefits associated with the expenditure will flow
to the Company.

B. Intangible assets

Intangible assets are recognized when it is probable that the future benefits that are attributable to the assets will flow to the Company
and the cost of assets can be measured reliably.

Research costs are expensed as incurred. Development expenditures on an individual project are recognised as an intangible asset when
the company can demonstrate:

a) The technical feasibility of completing the intangible assets so that the asset will be available for use or sale.

b) Its intention to complete and its ability and intention to use or sale the assets.

c) How the asset will generate future economic benefits

d) The availability of resources to complete the asset.

e) The ability to measure reliably the expenditure during development
During the period of development, the asset is tested for impairment annually.

Intangible assets acquired separately including patents and licenses, are measured on initial recognition at cost/deemed cost. Following
initial recognition, intangible assets are carried at cost less accumulated amortization and accumulated impairment losses, if any.
Amortisation of the assets begins when the asset is available for use.

The useful life of intangible assets are assessed as either definite or indefinite. Intangible assets with finite lives are amortized over
the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The
amortization period and the amortization method for an intangible assets with a finite useful life are reviewed at least at the end of each
reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied
in the assets are considered to modify the amortization period or method, as appropriate , and are treated as changes in accounting
estimates.

Intangible assets with indefinite useful lives are not amortized, but are tested for impairment annually, either individually or at cost
generating unit level. The assessment of indefinite life is reviewed annually to determine whether the indefinite life continues to be
supportable. If not, the change in useful life from indefinite to finite is made on prospective basis.

Internally generated intangible assets, excluding capitalized development costs, are not capitalized and expenditure is reflected in the
statement of profit and loss for the year in which the expenditure is incurred.

An intangible asset is derecognized on disposal, or when no future economic benefits are expected from its use. 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 is recognized in profit or loss when the asset is derecognized. Deemed Cost is the carrying amount under the previous GAAP
as at the transition date.

C. Depreciation and amortization

The classification of plant and machinery into continuous and non-continuous process is done as per their use and depreciation thereon
is provided accordingly. Depreciation commences when the assets are available for their intended use. Depreciation is calculated using
the straight-line method to allocate their cost, net of their residual values, over their estimated useful lives as prescribed under Part C of
Schedule II of the Companies Act 2013.

Intangible assets are amortized on a straight-line basis over the estimated useful economic life of the assets. The Company uses a
rebuttable presumption that the useful life of intangible assets is ten years from the date when the assets is available for use.

The estimated useful lives, residual values and depreciation method are reviewed at the end of each financial year and are given effect
to wherever appropriate.

D. Investment Properties

Investment Properties are measured initially at cost including transaction cost. Subsequent to such recognition, investment properties
are stated at cost less accumulated depreciation and accumulated impairment loss, if any. The cost includes cost of replacing parts and
borrowing cost for long term construction projects, if the recognition criteria are met. When significant parts of investment property
are required to be replaced at intervals, the Company depreciates them separately based on their specific useful lives using straight line
method. All other repairs and maintenance costs are recognised in the Statement of Profit & Loss as and when incurred. The investment
properties are derecognized either when they have been disposed off or when they are permanently withdrawn from use and no future
economic benefit is expected. The difference between the net disposal proceeds and the carrying amount of the assets is recognised in
the Statement of Profit and Loss in the period of de-recognition.

The fair value of the investment properties, based on an annual evaluation performed by an accredited external independent valuer, is
disclosed in the notes.

Transfers are made to (or from) investment properties only when there is a change in use. Transfers between investment property,
owner-occupied property and inventories do not change the carrying amount of the property transferred and they do not change the
cost of that property for measurement or disclosure purposes.

E. Foreign currency translations/Conversion

Transactions in foreign currencies are initially recorded at the functional currency spot rate prevailing at the date the transaction first
qualifies for recognition.

Monetary assets and liabilities related to foreign currency transactions outstanding at the balance sheet date are translated at the
functional currency spot rate of exchange prevailing at the balance sheet date. Any income or expense arising on account of foreign
exchange difference either on settlement or on translation is recognized in the Statement of Profit and Loss.

Non-monetary items which are carried at historical cost denominated in a foreign currency are translated using the exchange rate at
the date of the initial transaction. Non-monetary items which are measured at fair value in a foreign currency are translated using the
exchange rates at the date when fair value is determined. The gain or loss arising on translation of non-monetary items measured at fair
value is treated in line with the recognition of the gain or loss on the change in fair value of item.

F. Inventories

Raw material, process chemicals, stores and packing material are measured at weighted average cost.

Work in progress, traded and finished goods (other than by products and scraps) are measured at lower of cost or net realizable value.

By products and scrap are carried at estimated Net Realizable Value. 'B' Heavy molasses, a by product, is measured at derived value based
on yield/recovery of ethanol reckoned with respect to NRV of 'C' Heavy molasses/Ethanol.

Cost of finished goods and work in progress comprises of raw material cost (net of realizable value of By-products), variable and fixed
production overhead, which are allocated to work in progress and finished goods on full absorption cost basis. Cost of inventory also
includes all other cost incurred in bringing the inventories to their respective present location and condition. Borrowing costs are not
included in the value of inventories. Cost of traded goods is measured on FIFO basis and it includes incidental expenses.

The Cost of purchase is net of taxes which are refundable by the Government and is inclusive of incidental expenses.

Net realizable 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.

G. Revenue recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be
reliably measured.

Revenue from Contracts with Customers

Revenue from Contract(s) is recognised by following five steps model from revenue recognition as prescribed in Ind AS 115 which
namely are identifying of the contract(s) with a customer ; identifying the separate performance obligation in the contract ; determining
the transaction price ; allocating the transaction price to the each separate performance obligation and recognising revenue when
(or as) each performance obligation is satisfied. The model specifies that revenue should be recognised when (or as) an entity transfer
control of goods or services to a customer at the amount to which the entity expects to be entitled.

Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration,
the Company expect to receive in exchange for those products or services. Revenue is inclusive of excise duty and excluding estimated
discounts, pricing incentives, rebate and other similar allowances to the customers and exclusive of GST and other taxes and amount
collected on behalf of third party or Government, if any.

Sale of Products

Revenue from sale of products is recognised at the point in time when control of asset is transferred to the customers i.e when the
customers obtain the ability to direct the use of and obtain substantially all of the remaining benefits from the asset, including ability
to prevent other entities from directing the use of, and obtaining the benefits from an asset. The company considers whether there are
other promises in the contract that are separate performance obligation to which a portion of the transaction price needs to be allocated
e.g warranties. In determining the transaction price for the sale of products, the company considers the effect of variable consideration,
the existence of significant financing components, non-cash consideration, and consideration payable to the customers, if any.

Contract Balances
Contract Assets

A contract asset is recognised for the conditional earned consideration, if the company has the right to consideration in exchange of
goods or services transferred to a customer before the customer pays the consideration or before payment is due.

Trade Receivables

A trade receivable is recognised for the company's right to an amount of consideration, in exchange of goods or services transferred to
a customer, that is unconditional i.e. only the passage of time is required before payment of the consideration is due.

Contract Liabilities

A Contract liabilities is recognised for the consideration paid by a customer before the transfer of goods or services to the company. The
contract liabilities are recognised as revenue when the company performs under the contract.

Contract Cost

The incremental costs of obtaining a contract with a customer and the costs incurred to fulfil a contract with a customer, if those cost are
not within the scope of other Ind AS for e.g. Ind AS 2 - Inventories, Ind AS 16- Property Plant & equipment, Ind AS 38- Intangible Assets
etc, are recognised as an asset, if the company expects to recover those costs. The incremental costs of obtaining the contract are those
that the company incurs to obtain a contract with a customer that would not have been incurred if the contract had not been obtained.
The company has elected to apply the optional practical expedient for costs to obtain a contract and to fulfil a contract which allows
the company to immediately expense the costs because the amortization period of the asset that the company otherwise would have
used is one year or less.

Interest Income

Interest income from a financial asset is recognized when it is probable that the economic benefit 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.

Dividend Income

Dividend income is recognized when the Company's right to receive the dividend is established, it is probable that the economic
benefits associated with the dividend will flow to the entity and the amount of the dividend can be measured reliably i.e. in case of
interim dividend, on the date of declaration by the Board of Directors; whereas in case of final dividend, on the date of approval by the
shareholders.

Insurance Claim

Insurance claim are recognised only when the realization of insurance claim is probable, and only to the extent of related loss recognised
in the financial statements. The recovery of loss is generally would be probable, when the claim is not in dispute. Any amount expected
to be recovered is excess of recognised loss, which will result in gain is recognised upon the resolution of contingencies liability to
insurance claim i.e. whether amount of claim is admitted to the payable by the insurance company.

Export Incentives

Export Incentives are accounted for in the year of exports based on eligibility and when there is no significant uncertainty in receiving
the same.

Other incomes

All other incomes are accounted on accrual basis.

H. Expenses

All expenses are accounted for on accrual basis.

I. Borrowing

Long term borrowings are initially recognised at net of material transaction costs incurred and measured at amortised cost. Any
difference between the proceeds (net of transaction costs) and the redemption amount is recognised in the Statement of Profit and
Loss over the period of the borrowings using the effective interest method.

J. Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset are capitalised during the
period that is required to complete and prepare the asset for its intended use or sale. Qualifying assets are assets that necessarily take a
substantial time to get ready for their intended use or sale. Borrowing costs consist of interest and other costs that the Company incurs
in connection with the borrowing of funds. Borrowing costs also include exchange differences to the extent regarded as an adjustment
to the borrowing costs. Other borrowing costs are expensed in the period in which they are incurred.

K. Leases

lnd AS 116 requires lessees to determine the lease term as the non-cancellable period of a lease adjusted with any option to extend or
terminate the lease, if the use of such option is reasonably certain. The Company makes an assessment on the expected lease term on
a lease-by-lease basis and thereby assesses whether it is reasonably certain that any options to extend or terminate the contract will be
exercised. In evaluating the lease term, the Company considers factors such as any significant leasehold improvements undertaken over
the lease term, costs relating to the termination of the lease and the importance of the underlying asset to Company's operations taking
into account the location of the underlying asset and the availability of suitable alternatives. The lease term in future periods is reassessed
to ensure that the lease term reflects the current economic circumstances.

• The Company as a lessee

The Company's lease asset class primarily consist of leases for buildings. The Company assesses whether a contract contains a lease, at
inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a
period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the
company assesses whether:

Ý The contract involves the use of an identified asset.

Ý The Company has substantialized all of the economic benefits from use of the asset through the period of the lease and;

Ý The Company has the right to direct the use of the asset.

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

Certain lease arrangements include the options to extend or terminate the lease before the end of the lease term. ROU assets and lease
liabilities includes these options when it is reasonably certain that they will be exercised.

The right-of-use assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted for any lease
payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are
subsequently measured at cost less accumulated depreciation and impairment losses, if any.

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

Right-of-use assets is 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.

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

country of domicile of these leases. Lease liabilities are re-measured with a corresponding adjustment to the related right- of- use asset
if the Company changes its assessment of whether it will exercise an extension or a termination option.

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

• As a lessor

Leases for which the company is a lessor, is classified as finance lease or operating lease. Whenever the terms of the lease transfer
substantially all the risks and rewards of ownership to the lessee, the contract is classified as finance lease. All other leases are classified as
operating lease. When the Company is an intermediate lessor, it accounts for its interests in the head lease and the sub-lease separately.
The sub-lease is classified as finance lease or operating lease with reference to right-of-use asset arising from the head lease.

For operating leases, rental income is recognized on a straight line basis over the term of such lease.

L. Taxes

Income tax comprises current and deferred tax. It is recognized in profit or loss except to the extent that it relates to a business
combination or to an item recognized directly in equity or in other comprehensive income.

• Current tax

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to the tax
payable or receivable in respect of previous years. The amount of current tax reflects the best estimate of the tax amount expected to be
paid or received after considering the uncertainty, if any, related to income taxes. It is measured using tax rates (and tax laws) enacted or
substantively enacted by the reporting date.

In correlation to the underlying transaction relating to Other comprehensive income and Equity, current tax items are recognized 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. Then, full provisions are made where appropriate based on the amount expected to be paid to the tax authorities.

Current tax assets and current tax liabilities are offset only if there is a legally enforceable right to set off the recognized amounts, and it
is intended to realize the asset and settle the liability on net basis or simultaneously.

• Deferred Tax

Deferred tax is recognised using the balance sheet approach, providing for all the temporary differences between the carrying amounts
of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes, including on the transactions that
give rise to equal and offsetting temporary differences on its initial recognition. Deferred income tax is determined using tax rates (and
laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related
deferred income tax assets is realised or the deferred income tax liability is settled.

Deferred tax is recognised in Statement of profit and loss except to the extent that it relates to items recognized directly in OCI or equity,
in which case it is recognised in OCI or equity.

Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax asset 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
future taxable profits will be available against which the deductible temporary differences, unused tax credits, and unused tax losses can
be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the
related tax benefit will be realised.

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

M. Impairment

• Non Financial assets

Intangible assets that have an indefinite useful life are not subject to amortisation but are tested annually for impairment.

Other 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.

The Carrying amount of assets is reviewed at each balance sheet date, if there is any indication of impairment based on internal/external
factor. An asset is impaired when the carrying amount of the assets exceeds the recoverable amount. Impairment is charged to the profit
and loss account in the year in which an asset is identified as impaired.

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.

• Financial assets

The Company recognizes loss allowances using the Expected Credit Loss ("ECL") model for financial assets measured at amortized cost.
The Company recognizes lifetime expected credit losses for trade receivables. Loss allowance equal to the lifetime expected credit losses
are recognized if the credit risk of the financial asset has significantly increased since initial recognition.

N. Government grants

Government grants are recognised at fair value where there is reasonable assurance that the grant will be received and all attached
conditions will be complied with. Government grants that are receivable as compensation for expenses or losses already incurred or for
the purpose of giving immediate financial support to the company with no future related costs are recognised in statement of profit and
loss in the period in which they become receivable.

Government grants related to assets, including non-monetary grants recorded at fair value, are treated as deferred income and are
recognized and credited in the Statement of Profit and Loss on a systematic and rational basis over the estimated useful life of the related
asset and presented in other income.

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