1. Material accounting policies

1.1 Statement of compliance

The financial statements have been prepared as a going concern in accordance with Indian Accounting Standards
(Ind AS) notified under the Section 133 of the Companies Act, 2013 ("the Act") read with the Companies (Indian
Accounting Standards) Rules, 2015, as amended and other relevant provisions of the Act.

1.2 Basis of preparation and presentation

The financial statements have been prepared on the historical cost convention on accrual basis except for certain
financial instruments which are measured at fair value at the end of each reporting period, as explained in the
accounting policies mentioned below. Historical cost is generally based on the fair value of the consideration given
in exchange of goods or services.

The principal accounting policies are set out below:

All assets and liabilities have been classified as current or non-current according to the Company's operating cycle
and other criteria set out in the Act. Based on the nature of products and the time between acquisition of assets for
processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as
twelve months for the purpose of current and non-current classification of assets and liabilities.

1.3 Going concern

The Board of Directors have considered the financial position of the Company as at 31st March, 2026 and projected
cash flows and financial performance of the Company for at least twelve months from the date of approval of these
financial statements as well as planned cost and cash improvement actions, and believe that the plan for sustained
profitability remains on course.

1.4 Use of estimates and judgments

The preparation of financial statements in conformity with Ind AS requires management to make judgments,
estimates and assumptions that affect the application of accounting policies and the reported amount of assets,
liabilities, income, expenses and disclosures of contingent assets and liabilities at the date of these financial
statements and the reported amount of revenues and expenses for the years presented. Actual results may differ
from the estimates.

Estimates and underlying assumptions are reviewed at each balance sheet date. Revisions to accounting
estimates are recognized in the period in which the estimates are revised and future periods affected. Appropriate
changes in estimates are made as management becomes aware of changes in circumstances surrounding the
estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made
and, if material, their effects are disclosed in the notes to the financial statement.

1.5 Revenue recognition

The company derives revenue primarily from the sale of Sugar, Alcohol and power.

Revenue from contract with customers is recognized when the Company satisfies performance obligation by
transferring promised goods and services to the customer. Performance obligations are satisfied at the point of time
when the customer obtains controls of the asset.

Revenue is measured based on transaction price, which is the fair value of the consideration received or receivable,
stated net of discounts, returns and Goods and Services Tax. Transaction price is recognized based on the price
specified in the contract, net of the estimated sales incentives/ discounts. Accumulated experience is used to
estimate and provide for the discounts/ right of return, using the expected value method.

Ind AS 115 provides a single model of accounting for revenue arising from contracts with customers based on the
identification and satisfaction of performance obligations.

1.6 Foreign currencies

1.6.1. Functional and presentation currency

Items included in the financial statements are measured using the currency of the primary economic
environment in which the company operates ('the functional currency'). The financial statements are
presented in Indian rupee, which is the company's functional and presentation currency.

1.6.2. Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates at the
dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such
transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at
the year-end exchange rates are generally recognized in profit or loss.

1.7 Employee Benefits

1.7.1. 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.

1.7.2. Other long term employee benefit

The liabilities for earned leave that are not expected to be settled wholly within 12 months after the end of the
period in which the employees render the related service are measured as the present value of the expected
future payments to be made in respect of services provided by employee up to the end of 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 obligation. Measurements as a
result of 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. Accumulated leave, which is expected to be utilized within
the next 12 months, is treated as short-term employee benefit. The Company measures the expected cost of
such absences as the additional amount that it expects to pay as a result of the unused entitlement that has
accumulated at the reporting date.

1.7.3. Post-employment obligation

The Company operates the following post-employment schemes:

a) Defined benefit plans such as gratuity for its eligible employees and

b) Defined contribution plans such as provident fund.

Defined contribution plan:

Retirement benefit in the form of provident fund is a defined contribution scheme. The Company has no
obligation, other than the contribution payable to the provident fund. The Company recognizes contribution
payable to the provident fund scheme and pension scheme as expenditure, when an employee renders the
related service. If the contribution payable to the scheme for service received before the balance sheet date
exceeds the contribution already paid, the deficit payable to the scheme is recognized as a liability after
deducting the contribution already paid. If the contribution already paid exceeds the contribution due for
services received before the balance sheet date, then excess is recognized as an asset to the extent that the
pre-payment will lead to, for example, a reduction in future payment or a cash refund.

Defined benefit plan:

The Company has a gratuity defined benefit plans for its employees. The costs of providing benefits under
these plans are determined on the basis of actuarial valuation at each year-end. Separate actuarial valuation
is carried out for each plan using the projected unit credit method. Re-measurement 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 the balance sheet. The Company has funded this with Life Insurance Corporation of
India ('LIC') and HDFC Standard Life Insurance Company. The contributions made are treated as plan
assets. The defined benefit obligation recognized in the balance sheet represents the present value of the
defined benefit obligation as reduced by the fair value of plan assets.

1.7.4. Bonus plans

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

1.8 Taxation

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

1.8.1 Current tax

The income tax expenses or credit is based on taxable profit for the year. Taxable profit differs from 'profit
before tax' as reported in the statement of profit and loss because of items of income or expense that are
taxable or deductible in other years and items that are never taxable or deductible. The Company's current
tax is calculated using tax rates that have been enacted.

1.8.2 Deferred tax

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

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

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from
the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying
amount of its assets and liabilities.

1.8.3 Current and deferred tax for the year

Current and deferred tax are recognized in profit or loss, except when they relate to items that are recognized
in other comprehensive income or directly in equity, in which case, the income taxes are also recognized in
other comprehensive income or directly in equity respectively.

1.9. Property, plant and equipment

1) Adoption of Revaluation Model:

The management adopted revaluation model for its land, and determined that these constitute separate
class of assets under Ind AS 113, based on the nature, characteristics and risks of the asset.

Fair value of the land is determined by using the market approach. As at the date of revaluation, Value is
restated based on the valuation by a registered valuer as defined under rule 2 of Companies (Registered
Valuers and Valuation) Rules, 2017.

Valuations are performed with sufficient frequency to ensure that the carrying amount of a revalued asset
does not differ materially from its fair value.

A revaluation surplus is recorded in Other Comprehensive Income and credited to the asset revaluation
surplus in equity. However, to the extent that it reverses a revaluation deficit of the same asset previously
recognized in profit or loss, the increase is recognized in profit and loss. A revaluation deficit is recognized in
the statement of profit and loss, except to the extent that it offsets an existing surplus on the same asset
recognized in the asset revaluation reserve.

An annual transfer from the asset revaluation reserve to retained earnings is made for the difference
between depreciation based on the revalued carrying amount of the asset and depreciation based on the
asset's original cost. Additionally, accumulated depreciation as at the revaluation date is eliminated against
the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset.

Upon disposal, any revaluation reserve relating to the particular asset being sold is transferred directly to
retained earnings.

2) Cost Model

Property, plant and equipment, other than land measured through revaluation model, are stated at cost of
acquisition or construction less accumulated depreciation less accumulated impairment, if any.

Such assets are classified to the appropriate categories of property, plant and equipment when completed
and ready for intended use.

Subsequent costs are included in the asset's carrying amount or recognized as a separate asset, as
appropriate, only when 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. The carrying amount of any component
accounted for as a separate asset is derecognized when replaced. The other repairs and maintenance of
revenue nature are charged to profit or loss during the reporting period in which they are incurred.

Depreciation on Property, Plant and Equipment (other than freehold land) has been provided on the straight¬
line method as per the useful life prescribed in the Schedule II to the Companies Act, 2013.

The estimated useful life of the tangible assets are reviewed at the end of the each financial year and the
depreciation period is revised to reflect the changed pattern, if any.

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

1.9.1. Investment Property

Property that is held for long-term rental yields or for capital appreciation or both, and that is not occupied by
the group, is classified as investment property. Investment property is measured initially at its cost, including
related transaction costs and where applicable borrowing costs. Subsequent expenditure is capitalized to
the asset's carrying amount only when it is probable that future economic benefits associated with the
expenditure will flow to the group and the cost of the item can be measured reliably. All other repairs and
maintenance costs are expensed when incurred. When part of an investment property is replaced, the
carrying amount of the replaced part is derecognized.

An investment property is derecognized upon disposal or when the investment property is permanently
withdrawn from use and no future economic benefits are expected from disposal. Any gain or loss on
disposal or retirement of property is determined as the difference between the net disposal proceeds and the
carrying amount of the asset and is recognized in the statement of profit and loss.

Depreciation on investment property has been provided on the straight-line method as per the useful life
prescribed in Schedule II to the Companies Act, 2013.

1.10. Intangible assets

Intangible assets are stated at cost of acquisition or construction less accumulated depreciation less accumulated
impairment, if any.

1.11. Impairment of tangible and intangible assets

At the end of each reporting period, the Company reviews the carrying amounts of its tangible and intangible assets
to determine whether there is any indication that those assets have suffered an impairment loss. If any such
indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the
impairment loss (if any).

Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the
estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current
market assessments of the time value of money and the risks specific to the asset for which the estimates of future
cash flows have not been adjusted.

1.12. Inventories

Inventories are valued at the lower of cost and net realizable value.

The cost of finished goods and work in progress comprises raw materials, direct labor, other direct costs and
appropriate proportion of variable and fixed overhead expenditure. Overhead expenditures are being allocated on
the basis of normal operating capacity. Raw materials are valued at first in first out. Cost of inventories also includes
all other costs incurred in bringing the inventories to their present location and condition. Costs of purchased
inventory are determined after deducting rebates and discounts. Net realizable value is the estimated selling price
in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to
make the sale.

Non-production inventory (other than those supplied along with main plant and machinery, which are capitalized
and depreciated accordingly) are charged to profit or loss on consumption.