II. Material Accounting Policies

The Company has consistently applied the following
accounting policies to all periods presented in the
financial statements.

1. Basis of preparation

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). These financial
statements are prepared under the historical
cost convention on a going concern basis in
accordance with IND AS.

These are Company's separate
financial statements.

The financial statements were approved for
issue by the Board of Directors of the Company
at their meeting held on 23.05.2026.

2. Basis of measurement

The financial statements have been prepared
on a historical cost basis except the following
assets and liabilities:

• Certain financial assets and liabilities that is
measured at fair value (Refer note 41)

• Defined benefit liability/(assets): fair value
of plan assets less present value of defined
benefit obligation (Refer note 39)

3. Functional and presentation currency

These financial statements are presented
in Indian National Rupee ('INR'), which is the
Company's functional currency. All amounts
have been rounded to the nearest Crores
up to two decimal places, except when
otherwise indicated.

4. Use of judgements and estimates

The preparation of the financial statements
requires management to make judgements,
estimates and assumptions that affect the

reported amounts of assets, liabilities, income,
expenses, and the accompanying disclosures,
and the disclosure of contingent assets and
liabilities. Uncertainty about these assumptions
and estimates could result in outcomes that
require a material adjustment to the carrying
amount of assets or liabilities affected in
future periods.

Estimates and underlying assumptions are
reviewed on an ongoing basis. Revisions to
estimates are recognised prospectively.

A. Judgements

Information about the judgements made in
applying accounting policies that have the
most significant effects on the amounts
recognised in the financial statements have
been given below:

• Provision and contingencies
The assessment undertaken in recognizing
provision and contingencies have been made
in accordance with Ind AS 37, 'Provisions,
contingent liabilities and contingent assets'.
The evaluation of the likelihood of the
contingent events has required best judgement
by management regarding the probability of
exposure to potential loss.

B. Assumptions and estimation
uncertainties

The key assumptions concerning the future and
other key sources of estimation uncertainty
at the reporting date, that have a significant
risk of causing a material adjustment to the
carrying amounts of assets and liabilities
within the next financial year, are described
below, the company based its assumptions and
estimates on parameters available when the
financial statements were prepared. Existing
circumstances and assumptions about future
development, however, may change due to
market change or circumstances arising that
are beyond the control of the company. Such
changes are reflected in the assumptions when
they occurred.

Taxes:

Significant management judgement is required
to determine the amount of deferred tax assets
that can be recognised, based upon the likely
timing and the level of future taxable profits
together with future tax planning strategies.

To determine the future taxable profits,
reference is made to the latest available profit
forecasts. The Company is having MAT credit
that may be used to offset taxable income.

MAT credit entitlement is recognised to the
extent it is probable that taxable profit will be

available against which the MAT credit can be
utilised. Significant management judgement is
required to determine the amount of MAT credit
that can be recognised, based upon the likely
timing and the level of future taxable profits
together with future tax planning strategies.
Further details on taxes are disclosed in
note 20.

Useful lives of property, plant and equipment

The estimated useful lives of property, plant
and equipment are based on a number of
factors including the effects of obsolescence,
demand, competition, internal assessment of
user experience and other economic factors
(such as the stability of the industry, and
known technological advances) and the level of
maintenance expenditure required to obtain the
expected future cash flows from the asset. The
Company reviews the useful life of property,
plant and equipment at the end of each
reporting date.

Post-retirement benefit plans

Employee benefit obligations (gratuity
obligations) are determined using actuarial
valuation. An actuarial valuation involves
making various assumptions that may differ
from actual developments in the future. These
include the determination of the discount
rates, future salary increases and Mortality
rates. Due to the complexities involved in the
valuation and its long term natures, a defined
benefit obligation is highly sensitive to changes
in these assumptions. All assumptions are
reviewed at each reporting date.

Fair value measurement of financial
instruments

The fair value of financial assets and financial
liabilities recorded in the balance sheet in
respect of which quoted prices in active
markets are available and measured using
valuation techniques. The inputs to these
models are taken from observable markets
where possible, but where this is not feasible, a
degree of judgement is required in establishing
fair values. Judgements include considerations
of inputs such as liquidity risk, credit risk and
volatility. Changes in assumptions about these
factors could affect the reported fair value of
financial instruments.

Leases - Estimating the incremental
borrowing rate

The Company cannot readily determine the
interest rate implicit in the lease, therefore, it

uses its incremental borrowing rate (IBR) to
measure lease liabilities. The IBR is the rate
of interest that the Company would have to
pay to borrow over a similar term, and with a
similar security, the funds necessary to obtain
an asset of a similar value to the right-of-use
asset in a similar economic environment. The
IBR therefore reflects what the Company 'would
have to pay', which requires estimation when
no observable rates are available or when
they need to be adjusted to reflect the terms
and conditions of the lease. The Company
estimates the IBR using observable inputs (such
as market interest rates) when available.

Provision for expected credit losses of trade
receivables

The Company makes provision of expected
credit losses on trade receivables using
a provision matrix. The provision matrix is
based on its historical observed default rates,
adjusted for forward looking estimates. At
every reporting date, the historical observed
default rates are updated, and Company makes
appropriate provision wherever outstanding is
for longer period and involves higher risk.

The assessment of the correlation between
historical observed default rates, forecast
economic conditions and ECLs is a significant
estimate. The amount of ECLs is sensitive to
changes in circumstances and of forecast
economic conditions. The company's
historical credit loss experience and forecast
of economic conditions may also not be
representative of customer's actual default in
the future. The information about the ECLs on
the company's trade receivables and contract
assets is disclosed in Note 41 (II) Financial risk
management objective and policies

Provision for mines reclamation

The Company has recognised a provision for
mines reclamation based on its best estimates.
In determining the fair value of the provision,
assumptions and estimates are made in relation
to the expected future inflation rates, discount
rate, expected cost of reclamation of mines,
expected balance of reserves available in mines
and the expected life of mines.

Litigations and contingencies

In the normal course of business, contingent
liabilities may arise from litigation, taxation and
other claims against the Company. A provision
is recognised when the Company has a present
obligation as a result of past events and it is
probable that the Company will be required to

settle that obligation. Where it is management's
assessment that the outcome cannot be
reliably quantified or is uncertain, the claims
are disclosed as contingent liabilities unless
the likelihood of an adverse outcome is remote.
Such liabilities are disclosed in the notes but
are not provided for in the financial statements.
When considering the classification of legal
or tax cases as probable, possible or remote,
there is judgement involved. This pertains
to the application of the legislation, which in
certain cases is based upon management's
interpretation of specific applicable law, and
the likelihood of settlement. Management uses
in-house and external legal professionals to
make informed decision. Although there can
be no assurance regarding the final outcome
of the legal proceedings, the Company does
not expect them to have a materially adverse
impact on the Company's financial position
or profitability.

5. Classification of Assets and Liabilities
as Current and Non-Current

The Company present 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; or

• Held primarily for the purpose of trading; or

• Expected to be realised within twelve months
after the reporting period; or

• Cash and 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 treated as current when:

• It is expected to be settled in normal
operating cycle; or

• It is held primarily for the purpose of
trading; or

• It is due to be settled within twelve months
after the reporting period; or

• There is no unconditional right to defer the
settlement of the liability for at least twelve
months after the reporting period.

All other liabilities are classified 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 the assets for processing and
their realization in cash and cash equivalents.
The Company has identified twelve months as
its operating cycle.

6. Property, plant and equipment (PPE)

Recognition and measurement

Items of property, plant and equipment are
stated at cost less accumulated depreciation
and accumulated impairment loss, if any. The
cost of assets comprises of purchase price
and directly attributable cost of bringing the
assets to working condition for its intended
use including borrowing cost and incidental
expenditure during construction incurred up
to the date when the assets are ready to use.
Capital work in progress includes cost of assets
at sites, construction expenditure and interest
on the funds deployed.

If significant parts of an item of property, plant
and equipment have different useful lives,
then they are accounted for as a separate
item (major components) of property, plant
and equipment.

Items such as spare parts, stand-by equipment
and servicing equipment are recognized as
property, plant and equipment when they
meet the definition of property, plant and
equipment. Otherwise, such items are classified
as inventory.

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.

Capital work in progress is stated at cost, net of
accumulated impairment loss, if any.

Subsequent Measurement:

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

Expenditure during construction period:

Expenditure/Income during construction
period (including financing 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".

Depreciation:

Depreciation on Property, plant and equipment
(PPE) is calculated using the straight-line
method (SLM) to allocate their cost, net of their
residual values, over their estimated useful
lives (determined by the management based
on technical estimates). The assets residual
values and useful lives are reviewed at each
financial year end and adjusted prospectively,
if appropriate.

The Company, based on technical assessment
made by technical expert and management
estimate, depreciates Buildings and certain
items of plant and equipment over estimated
useful lives which are different from the useful
life prescribed in Schedule II to the Companies
Act, 2013.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.

Machinery spares are depreciated on straight
line basis over the remaining useful life of
related plant and equipment or useful life of
spare part, whichever is lower.

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

7. Intangible assets

Intangible Assets are stated at cost less
accumulated amortization and impairment
loss, if any. Intangible assets are amortized on
straight line method basis over the estimated
useful life.

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

Amortisation methods, useful lives and
residual values are reviewed in each financial
year end and changes, if any, are accounted
for prospectively.

An intangible asset is derecognised upon
disposal (i.e., at the date the recipient obtains
control) or when no future economic benefits
are expected from its use or disposal. Any gain
or loss arising upon 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.

8. Financial instruments

A financial instrument is any contract that gives
rise to asset of one entity and a financial liability
or equity instrument of another entity. Financial
instruments also include derivative contracts
such as foreign currency forward contracts,
cross currency interest rate swaps, interest rate
swaps and currency options; and embedded
derivatives in the host contract.

Financial Assets

Initial recognition and measurement

The classification of financial assets at initial
recognition depends on the financial asset's
contractual cash flow characteristics and the
Company's business model for managing them.
Except for trade receivables that do not contain
a significant financing component, all financial
assets are recognised initially at fair value, plus

in the case of financial assets not recorded at
fair value through profit or loss, transaction
costs that are attributable to the acquisition of
the financial asset. Trade receivables that do
not contain a significant financing component
are measured at the transaction price
determined under Ind AS 115.

Purchases or sales of financial assets that
require delivery of assets within a time frame
established by regulation or convention in
the market place (regular way trades) are
recognized on the trade date, i.e., the date
that the company commits to purchase or sell
the asset.

Classifications

The Company classifies its financial assets as
subsequently measured at either amortised
cost or fair value through other comprehensive
income (FVOCI) or fair value through Profit and
Loss Account (FVTPL) on the basis of either
Company's business model for managing
the financial assets or Contractual cash flow
characteristics of the financial assets.

Business model assessment

The company makes an assessment of the
objective of a business model in which an asset
is held at an instrument level because this best
reflects the way the business is managed and
information is provided to management.

Financial asset at amortised cost (debt
instruments):

A financial asset is measured at amortised cost
only if both of the following conditions are met:

• It is held within a business model whose
objective is to hold assets in order to collect
contractual cash flows.

• The contractual terms of the financial asset
represent contractual cash flows that are
solely payments of principal and interest.

After initial measurement, such financial assets
are subsequently measured at amortised
cost using the Effective Interest Rate ('EIR')
method. Amortised cost is calculated by taking
into account any discount or premium on
acquisition and fees or costs that are an integral
part of the EIR. The EIR amortisation is included
as finance income in the profit or loss. The
losses arising from impairment are recognised
in the profit or loss.

Financial asset at fair value through profit
and loss (FVTPL):

Any debt instrument, which does not meet the
criteria for categorization as at amortized cost
or as FVOCI, is classified as at FVTPL.

In addition, the company may elect to classify
a debt instrument, which otherwise meets
amortized cost or FVOCI criteria, as at FVTPL.
However, such election is allowed only if doing
so reduces or eliminates a measurement or
recognition inconsistency (referred to as
'accounting mismatch').

Financial asset included within the FVTPL
category are measured at fair value with all
changes recognized in the profit and loss.

Equity Instruments

All equity instruments in scope of Ind AS 109
are measured at fair value and all changes
in fair value are recorded in FVTPL. On initial
recognition an equity investment that is not
held for trading, the Company may irrevocably
elect to present subsequent changes in fair
value in OCI and fair value changes on the
instrument, excluding dividends, are recognized
in the OCI. There is no recycling of the amounts
from OCI to statement of profit and loss, even
on sale of investment. However, the Company
may transfer the cumulative gain or loss within
equity. This election is made on an investment-
by-investment basis.

Derecognition of financial assets

A financial asset (or, where applicable, a part
of a financial asset or part of a group of similar
financial assets) is primarily derecognised
(i.e. removed from the company's balance
sheet) when:

• The rights to receive cash flows from the
asset have expired, or

• The company has transferred its rights to
receive cash flows from the asset or has
assumed an obligation to pay the received
cash flows in full without material delay

to a third party under a 'pass-through'
arrangement; and either (a) the company has
transferred substantially all the risks and
rewards of the asset, or (b) the company has
neither transferred nor retained substantially
all the risks and rewards of the asset, but has
transferred control of the asset

When the company has transferred its rights to
receive cash flows from an asset or has entered
into a pass-through arrangement, it evaluates
if and to what extent it has retained the risks
and rewards of ownership. When it has neither
transferred nor retained substantially all of the
risks and rewards of the asset, nor transferred
control of the asset, the company continues to
recognize the transferred asset to the extent
of the company's continuing involvement. In
that case, the company also recognizes an
associated liability. The transferred asset and

the associated liability are measured on a basis
that reflects the rights and obligations that the
company has retained.

Continuing involvement that takes the form
of a guarantee over the transferred asset is
measured at the lower of the original carrying
amount of the asset and the maximum amount
of consideration that the company could be
required to repay.

On derecognition of a financial asset, the
difference between the carrying amount of
the asset (or the carrying amount allocated to
the portion of the asset derecognised) and the
sum of (i) the consideration received (including
any new asset obtained less any new liability
assumed) and (ii) any cumulative gain or loss
that had been recognised in OCI is recognised
in profit or loss.

Impairment of financial assets

The Company assesses on a forward-looking
basis the expected credit losses associated
with its assets carried at amortised cost,

FVTPL, trade receivables and other contractual
rights to receive cash or other financial asset.
For recognition of impairment loss on other
financial assets and risk exposure, the
Company determines that whether there has
been a significant increase in the credit risk
since initial recognition. If credit risk has not
increased significantly, 12-month ECL is used to
provide for impairment loss. However, if credit
risk has increased significantly, lifetime ECL is
used. If, in a subsequent period, credit quality
of the instrument improves such that there is
no longer a significant increase in credit risk
since initial recognition, then the entity revert to
recognizing impairment loss allowance based
on 12 month ECL.

Lifetime ECL are the expected credit losses
resulting from all possible default events over
the expected life of a financial instrument. The
12 -month ECL is a portion of the lifetime ECL
which results from default events on a financial
instrument that are possible within 12 months
after the reporting date.

With regard to trade receivable, the Company
applies the simplified approach as permitted
by Ind AS 109, Financial Instruments, which
requires expected lifetime losses to be
recognised from the initial recognition of the
trade receivables.

Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial
recognition, as financial liabilities at fair
value through profit or loss, amortised cost,
as appropriate.

All financial liabilities are recognised initially at
fair value and, in the case of amortised cost, net
of directly attributable transaction costs.

Subsequent measurement

The measurement of financial liabilities
depends on their classification, as
described below:

Financial Liabilities measured at amortised
cost

After initial recognition, interest-bearing loans
and borrowings are subsequently measured at
amortised cost using the EIR method. Gains and
losses are recognised in profit or loss when the
liabilities are derecognised as well as through
the EIR amortisation process.

Amortised cost is calculated by taking into
account any discount or premium on acquisition
and fees or costs that are an integral part of the
EIR. The EIR amortisation is included as finance
costs in the statement of profit and loss.

Financial liabilities at fair value through profit
or loss

Financial liabilities at fair value through profit or
loss include financial liabilities held for trading
and financial liabilities designated upon initial
recognition as at fair value through profit or
loss. Financial liabilities are classified as held
for trading if they are incurred for the purpose
of repurchasing in the near term.

Gains or losses on liabilities held for trading are
recognised in the profit or loss.

Financial liabilities designated upon initial
recognition at fair value through profit or loss
are designated as such at the initial date of
recognition, and only if the criteria in Ind AS
109 are satisfied. For liabilities designated as
FVTPL, fair value gains/ losses attributable to
changes in own credit risk are recognized in
OCI. These gains/ loss are not subsequently
transferred to P&L. However, the Company
may transfer the cumulative gain or loss within
equity. All other changes in fair value of such
liability are recognised in the statement of profit
or loss.

Financial guarantee contracts

Financial guarantee contract issued by the
Company is contracts that require a payment
to be made to reimburse the holder for a loss
it incurs because, the specified debtor fails
to make a payment when due in accordance
with the terms of a debt instrument. Financial
guarantee contracts are recognised initially as
a liability at fair value, adjusted for transaction
costs that are directly attributable to the
issuance of the guarantee. Subsequently,
the liability is measured at the higher of the
amount of loss allowance determined as
per impairment requirements of Ind AS 109,
and the transaction amount recognised less
cumulative amortisation.

Derecognition of financial liabilities

The company derecognises a financial liability
when its contractual obligations are discharged
or cancelled, or expire.

Reclassification of financial assets

The company determines classification
of financial assets and liabilities on initial
recognition. After initial recognition, no
reclassification is made for financial assets
which are equity instruments and financial
liabilities. For financial assets which are debt
instruments, a reclassification is made only
if there is a change in the business model
for managing those assets. Changes to the
business model are expected to be infrequent.
The company's senior management determines
change in the business model as a result
of external or internal changes which are
significant to the company's operations. Such
changes are evident to external parties. A
change in the business model occurs when the
company either begins or ceases to perform an
activity that is significant to its operations. If the
company reclassifies financial assets, it applies
the reclassification prospectively from the
reclassification date which is the first day of the
immediately next reporting period following the
change in business model. The company does
not restate any previously recognized gains,
losses (including impairment gains or losses)
or interest.