Material Accounting Policies

l.l| COMPANY INFORMATION

Gujarat Ambuja Exports Limited (Company) is a Public
Limited Company domiciled in India. The Company has
its registered office at "Ambuja Tower", Opp. Sindhu
Bhavan, Sindhu Bhavan Road, Bodakdev, PO Thaltej,
Ahmedabad, Gujarat, 380054. The Company is an Agro
Processing conglomerate with various manufacturing
plants at different locations in States of Gujarat,
Maharashtra, Madhya Pradesh, Uttarakhand, Karnataka
and West Bengal. The Company’s segment profile
includes Solvent Extraction comprising of all types of
Oil Seed Processing, Edible Oil Refining, Spinning, Maize
processing comprising of its Starch and its derivatives,
Wheat Processing / Cattle Feed and Power Generation
through Wind Mills, Bio gas, Thermal Power & Solar Plant
mainly for internal consumption. The Company’s shares
are listed on BSE and NSE.

The Board of directors approved the standalone
financials statements for the year ended 31^st March,
2025 and authorised for issue on 17^th May, 2025.

12 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

(i) Compliance with Ind-AS

The financial statements of the Company
have been prepared in accordance with Indian
Accounting Standards (Ind AS) notified under
the Companies (Indian Accounting Standards)
Rules, 2015 (as amended from time to time)
and presentation requirements of Division II of
Schedule III to the Companies Act, 2013, (Ind
AS compliant Schedule III) , as applicable to the
standalone financial statements of the Company.

The financial statements have been prepared on
a historical cost basis, except for certain financial
instruments which are measured at fair values.

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

(ii) Current versus Non-Current Classification

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 the normal operating cycle;

The said estimates are based on the facts and
events, that existed as at the reporting date, or
that occurred after that date but provide additional
evidence about conditions existing as at the
reporting date.

(iv) In addition the financial statements are prepared
in ' and values are rounded to the nearest Crores
except when otherwise indicated.

1.3 CRITICAL ESTIMATES AND JUDGMENTS

The preparation of financial statements requires the
use of accounting estimates which by definition will
seldom equal the actual results. Management also
need to exercise judgment in applying the Company’s
accounting policies.

This note provides an overview of the areas that
involved a higher degree of judgment or complexity,
and items which are more likely to be materially
adjusted due to estimates and assumptions turning
out to be different than those originally assessed.
Detailed information about each of these estimates
and judgments is included in relevant notes together
with information about the basis of calculation for each
affected line item in the financial statements.

The areas involving critical estimates or judgment are:

Government grant - refer note 1.6

Estimation of current tax expenses - refer note 1.7

Estimation of Defined benefit obligation - refer note 1.15.

1.4 FAIR VALUE MEASUREMENT

The Company measures financial instruments, such
as, derivatives at fair value as per Ind AS 113 at each
balance sheet date. All assets and liabilities for which
fair value is measured or disclosed in the financial
statements are categorised within the fair value
hierarchy, described as follows, based on the lowest
level input that is material to the fair value measurement
as a whole:

• Level 1 - Quoted (unadjusted) market prices in
active markets for identical assets or liabilities

• Level 2 - Valuation techniques for which the
lowest level input that is significant to the fair value
measurement is directly or indirectly observable.

• Level 3 - Valuation techniques for which the
lowest level input that is significant to the fair
value measurement is unobservable

For the purpose of fair value disclosures, the Company
has determined classes of assets and liabilities on the

basis of the nature, characteristics and risks of the
asset or liability and the level of the fair value hierarchy
as explained above.

1.5 REVENUE RECOGNITION

The Company earns revenue primarily from sale of
maize starch and derivatives, raw and refined edible
oil, de-oiled cake and yarn products.The Company has
applied Ind AS 115 which establishes a comprehensive
framework for determining whether, how much and
when revenue is to be recognised.

Revenue towards satisfaction of a performance
obligation is measured at the amount of transaction
price (net of variable consideration) allocated to that
performance obligation.

The transaction price of goods sold is net of variable
consideration on account of various discounts offered
by the Company as the part of contract. Revenue (net
of variable consideration) is recognised only to the
extent that is highly probable that amount will not be
subject to significant reversal when uncertainty relating
to its recognition is resolved.

Revenue is recognised upon transfer of control of
promised products or services to customers in an
amount that reflects the consideration which the
Company expects to receive in exchange for those
products or services.

Goods and Services Tax is not received by the Company
on its own account. Rather, it is tax collected on value
added to the commodity by the seller on behalf of the
government. Accordingly, it is excluded from revenue.

The specific recognition criteria described below must
also be met before revenue is recognised.

Sale of goods

Revenue from the sale of goods is recognised when
control of the goods have passed to the buyer,
usually on delivery of the goods. In determining the
transaction price for the sale of goods, the Company
considers the effects of variable consideration, the
existence of significant financing components, non
cash consideration, and consideration payable to the
customer (if any).

Interest income

Interest income on financial asset is recognised using
the effective interest rate (EIR) method.

Dividends

Dividend income from investment is accounted for

when the right to receive is established, which is
generally when shareholders approve the dividend.

Other Income

Other income is recognised when no significant
uncertainty as to its determination or realisation exists.

Contract Balances:

Trade Receivables:

A receivable represents the Company’s right to an
amount of consideration that is unconditional (i.e.,
only the passage of time is required before payment
of the consideration is due). Refer note 1.16 Financial
instruments - initial recognition and subsequent
measurement.

Contract Liabilities:

A contract liability is the obligation to transfer goods
or services to a customer for which the Company has
received consideration (or an amount of consideration
is due) from the customer. If a customer pays
consideration before the Company transfers goods
or services to the customer, a contract liability is
recognised when the payment is made or the payment
is due (whichever is earlier). Revenue for the same is
recognised when the Company performs under the
contract.

7.6 GOVERNMENT GRANTS

a Government grants are recognised in accordance with
the terms of the respective grant on accrual basis
considering the status of compliance of prescribed
conditions and ascertainment that the grant will be
received.

b Government grants related to revenue are recognised
on a systematic and gross basis in the Statement of
Profit and Loss over the period during which the related
costs intended to be compensated are incurred.

c Government grants related to assets are recognised as
income in equal amounts over the expected useful life
of the related asset.

d When the Company receives grants of non-monetary
assets, the asset and the grant are recorded at fair
value amounts and released to profit or loss over the
expected useful life in a pattern of consumption of
the benefit of the underlying asset i.e. by equal annual
installments.

e Amount received from Government as incentives
(Domestic and Export) is recognised as income
under other operating revenue (Refer note no. 29) and

recognised as receivable under other current assets
(Refer note no. 14).

777 TAXES

Tax expense comprises of current tax and deferred tax.

Current income tax

a Current tax is measured at the amount expected to be
paid on the basis of reliefs and deductions available
in accordance with the provisions of the Income Tax
Act, 1961. The tax rates and tax laws used to compute
the amount are those that are enacted or substantively
enacted, at the reporting date.

b Current tax items are recognised in correlation to the
underlying transaction either in Profit and Loss, Other
Comprehensive Income or directly in equity.

Deferred Tax

a Deferred tax is provided using the balance sheet
approach on temporary differences between the
tax bases of assets and liabilities and their carrying
amounts for financial reporting purposes at the
reporting date.

b Deferred tax liabilities are recognised for all taxable
temporary differences.

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

d The carrying amount of deferred tax assets is reviewed
at each reporting 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. 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.

e 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 at the reporting date.

f Deferred tax items are recognised in correlation to the
underlying transaction either in OCI or directly in equity.

g 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.

7.8 PROPERTY, PLANT AND EQUIPMENT (PPE)

Property, Plant and Equipment (PPE) (including Capital
work in progress) are stated at cost net of accumulated
depreciation and accumulated impairment losses, if
any. The cost comprises the purchase price, borrowing
costs, if capitalisation criteria are met, directly
attributable cost of bringing the asset to its working
condition for the intended use.

Capital Work in progress included in PPE is stated at
cost. Such cost includes the cost of replacing part of the
plant and equipment and borrowing costs for long-term
constructions projects if it is qualifying asset. When
significant parts of plant and equipment are required
to be replaced at intervals, the Company depreciates
them separately based on their specific useful lives.
Costs are recognised in the carrying amount of Plant
and Equipment if recognition criteria are met otherwise
expensed to profit or loss as incurred.

Borrowing cost relating to acquisition/construction of
PPE which take substantial period of time to get ready
for its intended use are also included to the extent they
relate to the period till such assets are ready to be put
to use.

Depreciation is calculated on a straight-line basis over
the estimated useful life of the assets as prescribed
under Part C of Schedule II of the Companies Act, 2013
except for the assets mentioned below for which useful
lives estimated by the management. The identified
component of PPE are depreciated over the useful lives
and the remaining components are depreciated over
the life of the principal assets.

I n respect of Power Plant, Biogas Engines and Solar
Plants, the Company based on technical evaluation,
identified the assets and components and reassessed
the remaining useful lives of PPE and depreciation is
provided accordingly.

The following is the useful life of each category of
assets in respect of Power Plant, Biogas Engines and
solar plant:

Further, the Company evaluated the useful life of certain
components of Plant and Machinery, the impact of
which is not material.

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

Further, the Company evaluated the useful life of certain
components of Plant and Machinery, the impact of
which is not material. Assets costing ' 5,000 or less
are fully depreciated in the year of purchase. Leasehold
land is amortised over the period of lease. Leasehold
improvements are amortised over the period of lease
or estimated useful life, whichever is lower.

An item of property, plant and equipment and any
significant part initially recognised is derecognised
upon disposal or when no future economic benefits
are expected from its use or disposal. Any gain or
loss arising on derecognition of the asset (calculated
as the difference between the net disposal proceeds
and the carrying amount of the asset) is included
in the statement of profit and loss when the asset is
derecognised.

1.9 INTANGIBLE ASSETS

Intangible assets acquired separately are measured
on initial recognition at cost. Following initial
recognition, intangible assets are carried at cost less
any accumulated amortisation and accumulated
impairment losses. Internally generated intangibles,
excluding development costs, are not capitalised and
the related expenditure is reflected in profit and loss in
the period in which the expenditure is incurred.

The useful lives of intangible assets are assessed as
either finite or indefinite.

Intangible assets with finite lives are amortised over
the useful life and assessed for impairment whenever
there is an indication that the intangible asset may be
impaired. The amortisation period and the amortisation
method for an intangible asset 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 asset are considered to modify the
amortisation period or method, as appropriate, and
are treated as changes in accounting estimates. The
amortisation expenses on intangible assets with finite
lives is recognised in the statement of profit and loss
unless such expenditure forms part of carrying value of
another asset.

Gains or losses arising from derecognition of an
intangible asset are measured as the difference between
the net disposal proceeds and the carrying amount of
the asset and are recognised in the statement of Profit
or Loss when the asset is derecognised.

1do| 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.

General borrowing costs are capitalised at the weighted
average of such borrowings outstanding during the
year.

1dl| LEASES

Ind 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.

Company as a lessee:

1. Right-of-use assets

The Company recognises right-of-use assets at
the commencement date of the lease (i.e., the
date the underlying asset is available for use).

Right-of-use assets are measured at cost, less
any accumulated depreciation and impairment
losses, and adjusted for any remeasurement of
lease liabilities. The cost of right-of-use assets
includes the amount of lease liabilities recognised,
initial direct cost incurred and Lease payment
made at or before the commencement date less
any lease incentives received. Right-of-use assets
are depreciated on a straight-line basis over the
the lease term as per lease agreement and the
estimated useful lives of the assets whichever
is lower. If ownership of the right-of-use asset
transfers to the Company at the end of the
lease term or the cost reflects the exercise of a
purchase option, depreciation is calculated using
the estimated useful life of the asset.The right-of-
use assets are also subject to impairment. ( Refer
Note No.2.3)"

2. Lease Liabilities

a. 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.

b. In calculating the present value of lease
payments, the Company uses its incremental
borrowing rate at the lease commencement
date. 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.

3. Short-term leases and leases of low-value assets

The Company applies the short-term lease
recognition exemption to its short-term leases (i.e.,
those leases that have a lease term of 12 months
or less from the commencement date and do not
contain a purchase option). Lease payments on
short-term leases and leases of low-value assets
are recognised as expense on a straight-line basis
over the lease term. ( Refer Note No. 2.3 )

U2| INVENTORIES

Inventories are valued as under:

a RAW MATERIALS, PACKING MATERIALS AND
STORES & SPARES:

Valued at lower of cost or net realisable value and
for this purpose cost is determined on weighted
average basis. Due provision for obsolescence is
made.

b FINISHED GOODS & WORK IN PROGRESS :

At cost or net realisable value, whichever is lower.
Cost is determined on absorption basis. Due
provision for obsolescence is made.

c BY- PRODUCTS :

At net realisable value

d STOCK-IN-TRADE :

Valued at lower of cost or net realisable value and
for this purpose cost is determined on weighted
average basis.

Net realisable value 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.

1.13| IMPAIRMENT OF NON-FINANCIAL ASSETS

I ntangible 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 recognised 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 amortisation or depreciation) had no
impairment loss been recognised for the asset in prior
year.

Impairment is determined for goodwill by assessing the
recoverable amount of each Cash Generating Unit (i.e.
CGU) (or group of CGUs) to which the goodwill relates.
When the recoverable amount of the CGU is less than
its carrying amount, an impairment loss is recognised.
Impairment losses relating to goodwill cannot be
reversed in future periods.

Intangible assets with indefinite useful lives are tested
for impairment annually as at year end at the CGU level,
as appropriate, and when circumstances indicate that
the carrying value may be impaired.