1. Corporate Information

Jubilant Agri and Consumer Products Limited (the Company) is a public limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The Company is engaged in the business of manufacturing and sale of agri, industrial polymers and consumer products. The Company caters to both domestic and international market. The registered office of the Company is situated at Bhartiagram, Gajraula District Amroha-244 223.

These financial statements were authorised for issuance by the Board of Directors of the Company in their meeting held on 26 May 2026.

2. Material accounting policies

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

(a) Basis of preparation

(i) Statement of compliance

The financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) as per the Companies (Indian Accounting Standards) Rules, 2015 notified under Section 133 of Companies Act, 2013 ("the Act") and other relevant provisions of the Act. The financial statements of the Company are presented in Indian Rupee and all values are rounded to the nearest million, except per share data and unless stated otherwise.

(ii) Historical cost convention

The financial statements have been prepared on a historical cost convention on accrual basis except for the following material items those have been measured at fair value as required by relevant Ind AS:

- Certain financial assets and liabilities measured at fair value (refer accounting policy regarding financial instruments);

- Defined benefit plans and other long-term employee benefits;

- Share-based payment transactions;

- Investment in equity instruments.

Expenditure incurred on start-up and commissioning of the project and/ or substantial expansion, including the expenditure incurred on trial runs (net of trial run receipts, if any) up to the date of commencement of commercial production are capitalised. Subsequent costs are included in the asset''s carrying amount or recognised as a separate asset, as the 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 derecognised when replaced. All other repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred.

Advances paid towards acquisition of property, plant and equipment outstanding at each Balance Sheet date, are shown under other non-current assets and cost of assets not ready for intended use before the year end, are shown as capital work-in-progress.

(ii) Intangible assets

Intangible assets that are acquired (including implementation of software system) and in process research and development are measured initially at cost.

After initial recognition, an intangible asset is carried at its cost less accumulated amortisation and any accumulated impairment loss. Subsequent expenditure is capitalized only when it increases the future economic benefits from the specific asset to which it related.

Expenditure on intangible assets eligible for capitalisation are carried as Intangible assets under development where such assets are not yet ready for their intended use.

(iii) Depreciation and amortisation methods, estimated useful lives and residual value

Depreciation is provided on straight line basis on the original cost/ acquisition cost of assets or other amounts substituted for cost of fixed assets as per the useful life specified in Part ''C'' of Schedule II of the Act, read with notification dated 29 August, 2014 of the Ministry of Corporate Affairs, except for the following classes of fixed assets which are depreciated based on the internal technical assessment of the management as under:

Depreciation on assets added/ disposed off during the year has been provided on pro-rata basis with reference to the date/month of addition/ disposal.

Leasehold lands, which qualify as finance lease is amortised over the lease period on straight line basis.

Software systems are being amortised over a period of five years or its useful life whichever is shorter.

Depreciation and amortisation methods, useful lives and residual values are reviewed at the end of each reporting period and adjusted, if appropriate.

that are largely independent of the cash inflows of other assets or CGUs.

The recoverable amount of a CGU is the higher of its value in use and its fair value less cost to sell. Value in use is based on the estimated future cash flows, discounted to their present value using a discount rate that reflects current market assessments of the time value of money and the risks specific to the CGU.

An impairment loss is recognised if the carrying amount of an asset or CGU exceeds its estimated recoverable amount. Impairment loss recognised in respect of a CGU is allocated first to reduce the carrying amounts of the other assets of the CGU (or group of CGUs) on a pro rata basis.

An impairment loss in respect of assets for which impairment loss has been recognised in prior periods, the Company reviews at reporting date whether there is any indication that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. Such a reversal is made only to the extent that the asset''s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognised.

(f) Financial instrument

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Financial assets

Initial recognition and measurement

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. 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 recognised on the trade date, i.e. the date the Company commits to purchase or sale the asset. However, trade receivables that do not contain a significant financing component are measured at transaction price.

gain or loss previously recognised in OCI is reclassified to the Statement of Profit and Loss. Interest earned whilst holding FVOCI debt instrument is reported as interest income using the EIR method.

Debt instrument at FVPL

FVPL is a residual category for debt instruments. Any debt instrument, which does not meet the criteria for categorisation as at amortised cost or as FVOCI, is classified as at FVPL.

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

Debt instruments included within the FVPL category are measured at fair value with all changes recognised in the Statement of Profit and Loss.

Equity investments

For the purpose of subsequent measurement, equity instruments are classified in two categories:

- Equity instruments at fair value through profit or loss (FVPL)

- Equity instruments at fair value through other comprehensive income (FVOCI)

All equity investments in scope of Ind AS 109 are measured at fair value. The Company may make an irrevocable election to present in other comprehensive income subsequent changes in the fair value. The Company makes such election on an instrument by instrument basis. The classification is made on initial recognition and is irrevocable.

If the Company decides to classify an equity instrument as at FVOCI then all fair value changes on the instrument as at FVOCI, then all fair value changes on the instrument, excluding dividends, are recognised in the OCI. There is no recycling of the amounts from OCI to the Statement of Profit and Loss, even on sale of investment. However, the Company may transfer the cumulative gain or loss within equity.

Equity instruments included within the FVPL category are measured at fair value with all changes recognised in the Statement of Profit and Loss.

Impairment of Financial assets

The Company recognises loss allowance using the expected credit loss (ECL) model for the financial assets which are not fair valued through profit or loss. Loss allowance for trade receivables with no significant financing component is measured at an amount to lifetime ECL. For all financial assets with contractual cash flows other than trade receivable, ECLs are measured at an amount equal to the 12-month ECL, unless there has been a significant increase in credit risk from initial recognition in which case those are measured at lifetime ECL. The amount of ECLs (or reversal), that is required to adjust the loss allowance at the reporting date to the amount that is required to be recognised as an impairment gain or loss in the Statement of Profit and Loss.

De-recognition

A financial asset (or, where applicable, a part of a financial asset or part of Company 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 do 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, the Company continues to recognise the transferred asset to the extent of the Company''s continuing involvement. In that case, the Company also recognises 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.

Financial liabilities

Financial liabilities are classified as measured at amortised cost or FVPL. A financial liability is classified as at FVPL if it is classified as held-for-trading, or it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVPL are measured at fair value and net gains and losses, including any interest expense, are recognised in Statement of Profit and Loss. Other financial liabilities are subsequently measured at amortised cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognised in Statement of Profit and Loss. Any gain or loss on de-recognition is also recognised in Statement of Profit and Loss.

De-recognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the Statements of Profit and Loss.

Compound financial instruments

The liability component of a compound financial instrument is recognised initially at fair value of a similar liability that does not have an equity component. The equity component is recognised initially as the difference between the fair value of the compound financial instrument as a whole and the fair value of the liability component. Any directly attributable transaction costs are allocated to the liability and the equity components, if material, in proportion to their initial carrying amounts.

Subsequent to the initial recognition, the liability component of a compound financial instrument is measured at amortised cost using the effective interest rate method. The equity component of a compound financial instrument is not re-measured subsequent to initial recognition except on conversion or expiry.

Derivative financial instruments and hedging activities

Derivatives are only used for economic hedging purposes and not as speculative investments. However, where derivatives do not meet the hedge accounting criteria, they are classified as ''held for trading'' for accounting purposes and are accounted for at FVPL. They are presented as current assets or liabilities to the extent they are expected to be settled within 12 months after the end of the reporting period.

Derivatives are initially recognized at fair value on the date a derivative contract is entered into and are subsequently re- measured to their fair value at the end of each reporting period. The accounting for subsequent changes in fair value depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged.

The Company designates their derivatives as hedges of commodity price risk and related foreign exchange risk associated with the cash flows of assets and liabilities and highly probable forecast transactions (cash flow hedges). The Company documents at the inception of the hedging transaction the economic relationship between hedging instruments and hedged items including whether the hedging instrument is expected to offset changes in cash flows of hedged items. The Company documents its risk management objective and strategy for undertaking various hedge transactions at the inception of each hedge relationship. The full fair value of a hedging derivative is classified as a non-current asset or liability when the remaining maturity of the hedged item is more than 12 months; it is classified as a current asset or liability when the remaining maturity of the hedged item is less than 12 months.

Cash flow hedges that qualify for hedge accounting

The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognized in cash flow hedging reserve within equity. The gain or loss relating to the ineffective portion is recognized immediately in profit or loss, within other gains/ (losses).

When forward contracts are used to hedge forecast transactions, the Company designate the full change in fair value of the forward contract as the hedging instrument. The gains and losses relating to the effective portion of the change in fair value of the entire forward contract are recognized in the cash flow hedging reserve within equity.

Amounts accumulated in equity are reclassified to profit or loss in the periods when the hedged item affects profit or loss (for example, when the forecast purchase that is hedged takes place).

When the hedged forecast transaction results in the recognition of a non-financial asset (for example inventory), the amounts accumulated in equity are transferred to profit or loss as follows:

With respect to gain or loss relating to the effective portion of the forward contracts, the deferred hedging gains and losses are included within the initial cost of the asset. The deferred amounts are ultimately recognized in profit or loss as the hedged item affects profit or loss (for example, through cost of sales).

When a hedging instrument expires, or is sold or terminated, or when a hedge no longer meets the criteria for hedge accounting, any cumulative deferred gain or loss and deferred costs of hedging in equity at that time remains in equity until the forecast transaction occurs. When the forecast transaction is no longer expected to occur, the cumulative gain or loss and deferred costs of hedging that were reported in equity are immediately reclassified to profit or loss within other gains/(losses).

If the hedge ratio for risk management purposes is no longer optimal but the risk management objective remains unchanged and the hedge continues to qualify for hedge accounting, the hedge relationship will be rebalanced by adjusting either the volume of the hedging instrument or the volume of the hedged item so that the hedge ratio aligns with the ratio used for risk management purposes. Any hedge ineffectiveness is calculated and accounted for in profit or loss at the time of the hedge relationship rebalancing.

Derivatives that are not designated as hedges

The Company enters certain derivative contracts to hedge risks which are not designated as hedges. Such contracts are accounted for at fair value through profit or loss and are included in statement of profit and loss.

Embedded derivatives

Derivatives embedded in a host contract that is an asset within the scope of Ind AS 109 are not separated. Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are solely payment of principal and interest.

Derivatives embedded in all other host contract are separated only if the economic characteristics and risks of the embedded derivative are not closely related to the economic characteristics

and risks of the host and are measured at fair value through profit or loss. Embedded derivatives closely related to the host contracts are not separated.

Offsetting

Financial assets and financial liabilities are off set and the net amount presented in Balance Sheet when, and only when, the Company currently has a legally enforceable right to set off the amounts and is intends either to settle them on a net basis or to realise the asset and settle the liability simultaneously.

(g) Inventories

Inventories are valued at lower of cost and net realizable value except scrap, which is valued at net estimated realizable value.

Cost includes all direct costs, cost of conversion and appropriate portion of variable and fixed production overheads and such other costs incurred as to bring the inventory to its present location and condition inclusive of any tax wherever applicable.

Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion/ reprocessing and the estimated cost necessary to make the sale.

The net realizable value of work-in-progress is determined with reference to the selling price of related finished products. Raw materials and other supplies held for use in the production of finished goods are not written down below cost except in cases where material prices have declined and it''s estimated that the cost of finished goods will exceed their net realizable value.

(h) Cash and cash equivalents

Cash and cash equivalents comprise cash at banks and on hand and short term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.

(i) Provisions

A provision is recognised if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. If the effect of the time value of money is material, provisions are determined by discounting the future cash flows at a pre-tax rate that effects current market assessments of the time value of money and the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at reporting date, taking into account the risks and uncertainties surrounding the obligation. When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the receivable is recognized as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

(j) Contingent assets, liabilities and commitments

Contingent liabilities are disclosed in respect of possible obligations that may arise from past events but their existence is confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company. Contingent Assets are neither recognized nor disclosed in the financial statements. However, contingent assets are assessed continuously and if it is virtually certain that an inflow of economic benefits will arise, the assets and related income are recognized in the period in which the change occurs.

Commitments are future liabilities for contractual expenditure, classified and disclosed as follows: (i) estimated amount of contracts remaining to be executed on capital account and not provided for;

(ii) uncalled liability on shares and other investments partly paid; (iii) funding related commitment to subsidiary, associate and joint venture companies; and (iv) other non-cancellable commitments, if any, to the extent they are considered material and relevant in the opinion of management. Other commitments related to sales/ procurements made in the normal course of business are not disclosed to avoid excessive details.

(k) Revenue recognition

The company''s revenue is derived from single performance obligation under arrangements in which the transfer of control of product and the fulfilment of company''s performance obligation occur at the same time.

Revenue from sale of products is recognised when the property in the goods or all significant risks and rewards of ownership of the products have been transferred to the buyer, and no significant

uncertainty exists regarding the amount of the consideration that will be derived from the sale of products as well as regarding its collection.

Revenue includes only those sales for which the Company has acted as a principal in the transaction, takes title to the products, and has the risks and rewards of ownership, including the risk of loss for collection, delivery and returns. Any sales for which Company has acted as an agent without assuming the risks and rewards of ownership have been reported on a net basis.

Goods sold on consignment are recorded as inventory until goods are sold by the consignee to the end customer.

Subsidy in respect of fertilizer being disbursed by the Central Government of India is included in turnover and the same is recognized based upon the latest notified rates and only to the extent that the realization is reasonably assured.

Sale of utility is recognized on delivery of the same to the purchaser and when no significant uncertainty exists as to its realization.

Export incentives entitlements are recognized as income when the right to receive credit as per the terms of the scheme is established in respect of exports made, and where no significant uncertainty regarding the ultimate collection of the relevant export proceeds exists.

Revenue towards satisfaction of a performance obligation is measured at the amount of transaction price (net of variable consideration) allocated to that performance obligation. Revenue is recognized to the extent it is probable that the economic benefits will flow to the Company and the revenue and costs, if applicable, can be measured reliably. Taxes (GST) collected on behalf of the government are excluded from Revenue. The transaction price of goods sold and services rendered is net of variable consideration on account returns, discounts, customer claims and rebates, etc.

Other income recognition:

Dividend income is recognized when the right to receive the income is established. Income from interest on deposits, loans and interest bearing securities is recognized on time proportionate basis. Other non- operating revenue is recognised in accordance with terms of underlying asset.

(l) Employee benefits

(i) Short-term employee benefits: All employee benefits falling due within twelve months of the end of the period in which the employees render the related services are classified as short-term employee benefits, which include benefits like salaries, wages, short term compensated absences, performance incentives, etc. And are recognised as expenses in the period in which the employee renders the related service and measured accordingly.

(ii) Post-employment benefits: Post

employment benefit plans are classified into defined benefits plans and defined contribution plans as under:

a) Gratuity

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees. The plan provides for a lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount based on the respective employee''s salary and the tenure of employment. The liability in respect of gratuity is recognized in the books of accounts based on actuarial valuation by an independent actuary. The gratuity liability for certain employees of the one of the units of the Company is funded with Life Insurance Corporation of India.

b) Superannuation

Certain employees of the Company are also participants in the superannuation plan (''the Plan''), a defined contribution plan. Contribution made by the Company to the Plan during the year is charged to Statement of Profit and Loss.

c) Provident Fund

The Company''s contribution to the provident fund is deposited with Regional Provident Fund Commissioner for its employees in India. The Company''s contribution to the provident fund is charged to Statement of Profit and Loss. This is treated as defined contribution plan.

(iii) Other long-term employee benefits: Compensated absences

As per the Company''s policy, eligible leaves can be accumulated by the employees and carried forward to future periods to either be utilised during the service, or encashed. Encashment can be made during service, on early retirement, on withdrawal of scheme, at resignation and upon death of employee. Accumulated compensated absences are treated as other long-term employee benefits. The Company''s liability in respect of other long-term employee benefits is recognized in the books of accounts based on actuarial valuation using projected unit credit method as at Balance Sheet date by and independent actuary. Actuarial losses/gains are recognised in the Statement of Profit and Loss in the year in which they arise.

(iv) Termination benefits:

Termination benefits are recognized as an expense when, as a result of a past event, the Company has a present obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation.

(v) Actuarial valuation:

The liability in respect of all defined benefit plans is accrued in the books of accounts on the basis of actuarial valuation carried out by an independent actuary using the Project Unit Credit Method, which recognizes each year of service as giving rise to additional unit of employees benefit entitlement and measure each unit separately to build up the final obligation. The obligation is measured at the present value of estimated future cash flows. The discount rates used for determining the present value of obligation under defined benefit plans, is based on the market yields on Government securities as at the Balance Sheet date, having maturity periods approximating to the terms of related obligation.

Re-measurement gains and losses in respect of all defined benefit plans arising from experience adjustments and changes in actuarial assumptions are recognised in the

period in which they occur, directly in other comprehensive income. They are included in retained earnings in the Statement of Changes in the Equity and in the Balance Sheet. Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognized immediately in profit or loss as past service cost. Gains or losses on the curtailment or settlement of any defined benefit plan are recognized when the curtailment or settlement occurs. Any differential between the plan assets (for a funded defined benefit plan) and the defined benefit obligation as per actuarial valuation is recognised as a liability if it is a deficit or as an asset if it is a surplus (to the extent of the lower of present value of any economic benefits available in the form of refunds from the plan or reduction in future contribution to the plan).

Past service cost is recognised as an expense in the Statement of Profit and Loss on a straight-line basis over the average period until the benefits become vested. To the extent that the benefits are already vested immediately following the introduction of, or changes to, a defined benefit plan, the past service cost is recognised immediately in the Statement of Profit and Loss. Past service cost may be either positive (where benefits are introduced or improved) or negative (where existing benefits are reduced).

(m) Share based expense

The grant date fair value of options granted (net of estimated forfeiture) to employees of the Company is recognized as an employee expense, with a corresponding increase in equity, over the period that the employees become unconditionally entitled to the options. The expense is recorded for separately each vesting portion of the award as if the award was, in substance, multiple awards. The increase in equity recognized in connection with share based expense transaction is presented as a separate component in equity under "share based expense reserve". The amount recognized as an expense is adjusted to reflect the actual number of stock options that vest. For the option awards, grant date fair value is determined under the optionpricing model (Black-Scholes-Model). Forfeitures

are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures materially differ from those estimates.

(n) Finance costs

Finance costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. Finance cost also includes exchange differences to the extent regarded as an adjustment to the finance costs. Finance costs that are directly attributable to the construction or production or development of a qualifying asset are capitalized as part of the cost of that asset. Qualifying assets are assets that are necessarily take a substantial period of time to get ready for their intended use or sale. All other finance costs are expensed in the period in which they occur.

Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the finance costs eligible for capitalization.

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. Ancillary costs incurred in connection with the arrangement of borrowings are amortised over the period of such borrowings.

(o) Income tax

Income tax expense comprises current and deferred tax. It is recognised in Statement of Profit and Loss except to the extent that it relates to a business combination, or items recognised directly in equity or in OCI.

• 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 payable or receivable is the best estimate of the tax amount expected to be paid or received after considering uncertainty related to income taxes, if any. It is measured using tax rates enacted or substantially enacted at the reporting date in the countries where the Company operates and generates taxable income.

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

• Deferred tax

Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for:

- temporary differences arising on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting not taxable profit or loss at the time of the transaction;

- temporary differences related to freehold land and investment in subsidiaries to the extent that the Company is able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future;

- taxable temporary differences arising on the initial recognition of goodwill.

Deferred tax assets are recognised for unused tax losses, unused tax credits and deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be used. Unrecognised deferred tax assets are reassessed at each reporting date and recognised to the extent that it has become probable that future taxable profits will be available against which they can be used. Deferred tax is measured at the tax rates that are expected to be apply to the period when the asset is realised or the liability is settled, based on the laws that have been enacted or substantively enacted by the reporting date. The measurement of deferred tax reflects the tax consequences that would follow from the manner in which the Company expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.

Deferred tax assets and liabilities are offset only if there is legally enforceable right to set off the recognised amounts, and it is intended to realise the asset and settle the liability on a net basis simultaneously.

Deferred income tax is not provided on the undistributed earnings of the subsidiaries where it is expected that the earnings of the subsidiary will not be distributed in the foreseeable future.

(p) Leases

The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

Company as a lessee

The Company applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. The Company recognizes lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets.

The Company determines the lease term as the non-cancellable term of the lease, together with any periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease, if it is reasonably certain not to be exercised.

Right-of-use assets

The Company recognizes 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 measurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognized, initial direct costs incurred and lease payments 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 lease term.

Lease Liability

At the commencement date of the lease, the Company recognizes lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments less any lease incentives receivable. Variable lease payments that do not depend on an index or a rate are recognized as expenses (unless they are incurred to produce inventories) in the period in which the event or condition that triggers the payment occurs.

In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. 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 or a change in the assessment of an option to purchase the underlying asset.

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). It also applies the lease of low-value assets recognition exemption to leases of office equipment that are considered to be low value. Lease payments on short-term leases and leases of low-value assets are recognized as expense on a straight-line basis over the lease term.

(q) Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The CEO and Whole-time Director of the Company is responsible for allocating resources and assessing performance of the operating segments and accordingly identified as the chief operating decision maker. Revenues, expenses, assets and liabilities, which are common to the enterprise as a whole and are not allocable to segments on a reasonable basis, have been treated as "un-allocable revenue/ expenses/ assets/ liabilities", as the case may be.

(r) Foreign currency translation

(i) Functional and presentation currency

The functional currency of the Company is the Indian rupee. These financial statements are presented in Indian rupee.

(ii) 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 Balance Sheet date exchange rate are generally recognised in Statement of Profit and Loss.

(iii) Foreign operations

The results and financial position of foreign operations (none of which has the currency of a hyperinflationary economy) that have a functional currency different from the presentation currency are translated in to the presentation currency as follows:

o Share capital and opening reserves and surplus are carried at historical cost.

o All assets and liabilities, both monetary and non-monetary, (excluding share capital, opening reserve and surplus) are translated using closing rates at Balance Sheet date.

o Profit and Loss items are translated at the respective year to dates average rates or the exchange rate that approximates the actual exchange rate on the date of specific transaction.

o Contingent liabilities are translated at the closing rates at Balance Sheet date.

o All resulting exchange differences are recognised on Other Comprehensive Income.

When a foreign operation is sold, the associated cumulative exchange differences are classified to profit or loss, as part of the gain or loss on sale.

The items of Cash Flow Statement are translated at the respective average rates or

the exchange rate that approximates the actual exchange rate on date of specific transaction. The impact of changes in exchange rate on cash and cash equivalent held in foreign currency is included in effect of exchange rate changes.

(s) Government grants

Grants from the government are recognised at their fair value where there is a reasonable assurance that the grant will be received and the Company will comply all attached conditions.

Government grants relating to income are deferred and recognised in the Statement of Profit and Loss over the period necessary to match them with the costs that they are intended to compensate and presented within other income.

Government grants relating to the purchase of property, plant and equipment are included in noncurrent liabilities as deferred income and are credited to Statement of Profit and Loss on a straight-line basis over the expected lives of the related assets and presented within other income.

(t) Earnings per share

(i) Basic earnings per share

Basic earnings per share, is calculated by dividing:

o the profit attributable to owners of the Company

o by the weighted average number of equity shares outstanding during the financial year, adjusted for bonus elements in equity shares issued during the year and excluding treasury shares.

(ii) Diluted earnings per share

Diluted earnings per share, adjusts the figures used in the determination of basic earnings per share to take into account:

o The after income tax effect of interest and other financing costs associated with dilutive potential equity shares, and

o The weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive potential equity shares.

(u) Measurement of fair values

A number of the accounting policies and disclosures require measurement of fair values, for both financial and non-financial assets and liabilities.

Fair values are categorised into different level in a fair value hierarchy based on the inputs used in the valuation techniques as follows:

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3: inputs for the asset or liability, those are not based on observable market data (unobservable data).

The Company has an established control framework with respect to the measurement of fair values. This includes a finance team that has overall responsibility for overseeing all significant fair value measurements, including Level 3 fair values.

The finance team regularly reviews significant unobservable inputs and valuation adjustments. If third party information, is used to measure fair values, then the finance team assesses the evidence obtained from the third parties to support the conclusion that these valuations met the requirement of Ind AS, including the level in the fair value hierarchy in which the valuations should be classified.

When measuring the fair values of an asset or a liability, the Company uses observable market data as possible. If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.

The Company recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.

Further information about the assumptions made in measuring fair values used in preparing these financial statements is included in the respective notes.

(v) Critical estimates and judgements

The preparation of Financial Statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future period affected. In particular, information about significant areas of estimation uncertainty and critical judgements in applying accounting policies that have the most significant effect on the amounts recognised in the Financial Statements is included in the following notes.

• Recognition and estimation of tax expense including deferred tax - Note 30.

• Estimated impairment of financial assets and non-financial assets- Note 2(e) and 2(f).

• Assessment of useful life of property, plant and equipment and intangible asset- Note 2(c).

• Estimation of assets and obligations relating to employee benefits- Note 34.

• Valuation of inventories- Note 2(g).

• Recognition of revenue and related accruals-Note 2(k).

• Recognition and measurement of contingency: Key assumption about the likelihood and magnitude of an outflow of resources- Note 41.

• Lease classification- Note 44.

• Fair value measurements- Note 2(u).

(w) Recent accounting pronouncements

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time.

In May 2025, MCA notified amendments to Ind AS 21 - The Effects of Changes in Foreign Exchange Rates, applicable w.e.f. 01 April 2025. The Company has reviewed the amendment and based on its

evaluation has determined that it does not have any significant impact in its financial statements.

In August 2025, MCA notified the following amendments to:

1. Ind AS 1, Presentation of Financial Statements, applicable w.e.f. 01 April 2025 - The amendment relates to classification of liabilities as current or noncurrent and non-current liabilities with covenants. In the context of classifying a liability as current, it removes the requirement of existence of a right to defer settlement for at least 12 months after the reporting date and instead requires that the said right should exist on the reporting date and have substance. The amendment also introduces guidance on classification of liabilities with covenants. The Company has no impact of these amendments in its classification criteria of current and non-current liabilities.

2. Ind AS 7, Statement of Cash Flows and Ind AS 107, Financial Instruments: Disclosures, applicable w.e.f. 01 April 2025 - The amendment in Ind AS 7 requires to inform users of financial statements of the existence of supplier finance arrangements and explain the nature of th

2. Material accounting policies

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

(a) Basis of preparation

(i) Statement of compliance

The financial statements have been prepared
in accordance with Indian Accounting
Standards (Ind AS) as per the Companies
(Indian Accounting Standards) Rules, 2015
notified under Section 133 of Companies Act,
2013 ("the Act") and other relevant provisions
of the Act. The financial statements of the
Company are presented in Indian Rupee and
all values are rounded to the nearest million,
except per share data and unless stated
otherwise.

(ii) Historical cost convention

The financial statements have been prepared
on a historical cost convention on accrual basis
except for the following material items those
have been measured at fair value as required
by relevant Ind AS:

- Certain financial assets and liabilities
measured at fair value (refer accounting
policy regarding financial instruments);

- Defined benefit plans and other long-term
employee benefits;

- Share-based expense transactions;

- Investment in equity instruments.

(b) 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 normal operating cycle;

• It is held primarily for the purpose of trading;

• It is expected to be realised within twelve
months after the reporting period; or

• It is cash or cash equivalent unless restricted
from being exchanged or used to settle a
liability for at least twelve months after the
reporting period.

The Company classifies all other assets as non¬
current.

A liability is current when:

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

• It is held primarily for the purpose of trading;

• 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.

The Company classifies all other liabilities as non¬
current.

Deferred tax assets and liabilities are classified as
non-current assets and liabilities respectively.

The operating cycle is the time between the
acquisition of assets for processing and their
realisation in cash and cash equivalents. The
Company has identified twelve months as its
operating cycle for the purpose of current-non¬
current classification of assets and liabilities.

(c) Property, plant and equipment (PPE) and
intangible assets

(i) Property, plant and equipment

Freehold land is carried at cost. All other items
of property, plant and equipment are stated
at cost, which includes capitalized finance costs,
less accumulated depreciation and any
accumulated impairment loss. Cost includes
expenditure that is directly attributable to the
acquisition of the items. The cost of an item of
a PPE comprises its purchase price including

import duty, and other non-refundable taxes
or levies and any directly attributable cost of
bringing the asset to its working condition of
its intended use. Any trade discounts and
rebates are deducted in arriving at the
purchase price.

Expenditure incurred on start-up and
commissioning of the project and/ or
substantial expansion, including the
expenditure incurred on trial runs (net of trial
run receipts, if any) up to the date of
commencement of commercial production are
capitalised. Subsequent costs are included in
the asset''s carrying amount or recognised as a
separate asset, as the 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 derecognised when replaced. All other
repairs and maintenance are charged to profit
or loss during the reporting period in which
they are incurred.

Advances paid towards acquisition of property,
plant and equipment outstanding at each
Balance Sheet date, are shown under other
non-current assets and cost of assets not ready
for intended use before the year end, are
shown as capital work-in-progress.

(ii) Intangible assets

Intangible assets that are acquired (including
implementation of software system) and in
process research and development are
measured initially at cost.

After initial recognition, an intangible asset is
carried at its cost less accumulated
amortisation and any accumulated impairment
loss. Subsequent expenditure is capitalized
only when it increases the future economic
benefits from the specific asset to which it
related.

Expenditure on intangible assets eligible for
capitalisation are carried as Intangible assets
under development where such assets are not
yet ready for their intended use.

(iii) Depreciation and amortisation methods,
estimated useful lives and residual value

Depreciation is provided on straight line basis
on the original cost/ acquisition cost of assets
or other amounts substituted for cost of fixed
assets as per the useful life specified in Part ''C''
of Schedule II of the Act, read with notification
dated 29 August, 2014 of the Ministry of
Corporate Affairs, except for the following
classes of fixed assets which are depreciated
based on the internal technical assessment of
the management as under:

Depreciation on assets added/ disposed off
during the year has been provided on pro-rata
basis with reference to the date/month of
addition/ disposal.

Leasehold lands, which qualify as finance lease
is amortised over the lease period on straight
line basis.

Software systems are being amortised over a
period of five years or its useful life whichever
is shorter.

Depreciation and amortisation methods, useful
lives and residual values are reviewed at the
end of each reporting period and adjusted, if
appropriate.

(iv) De-recognition

A property, plant and equipment and
intangible assets is derecognised on disposal
or when no future economic benefits are
expected from its use and disposal. Losses
arising from retirement and gains or losses
arising from disposal of a tangible 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 and Loss.

(d) Discontinued operations and non-current assets
held for sale

Discontinued operation is a component of the
Company that has been disposed of or classified
as held for sale and represents a major line of
business.

Non-current assets are classified as held for sale if
it is highly probable that they will be recovered
primarily through sale rather than through
continuing use.

Such assets are generally measured at the lower of
their carrying amount and fair value less cost to
sell. Losses on initial classification as held for sale
and subsequent gains and losses on re¬
measurement are recognised in the Statement of
Profit and Loss.

Once classified as held for sale, property, plant and
equipment and intangible assets are no longer
depreciated or amortised.

(e) Impairment of non-financial assets

Goodwill and intangible assets that have an
indefinite useful life are not subject to amortisation
and are tested annually for impairment or more
frequently if events or changes in circumstances
indicate that they might be impaired. The
Company''s non-financial assets other than
inventories and deferred tax assets are reviewed
at each reporting date to determine whether there
is any indication of impairment. If any such
indication exists then the asset''s recoverable
amount is estimated.

For impairment testing, assets that do not generate
independent cash inflows are grouped together
into cash-generating units (CGUs) represents the
smallest group of assets that generates cash inflows

that are largely independent of the cash inflows of
other assets or CGUs.

The recoverable amount of a CGU is the higher of
its value in use and its fair value less cost to sell.
Value in use is based on the estimated future cash
flows, discounted to their present value using a
discount rate that reflects current market
assessments of the time value of money and the
risks specific to the CGU.

An impairment loss is recognised if the carrying
amount of an asset or CGU exceeds its estimated
recoverable amount. Impairment loss recognised
in respect of a CGU is allocated first to reduce the
carrying amounts of the other assets of the CGU
(or group of CGUs) on a pro rata basis.

An impairment loss in respect of assets for which
impairment loss has been recognised in prior
periods, the Company reviews at reporting date
whether there is any indication that the loss has
decreased or no longer exists. An impairment loss
is reversed if there has been a change in the
estimates used to determine the recoverable
amount. Such a reversal is made only to the extent
that the asset''s carrying amount does not exceed
the carrying amount that would have been
determined, net of depreciation or amortization, if
no impairment loss had been recognised.

(f) Financial instrument

A financial instrument is any contract that gives rise
to a financial asset of one entity and a financial
liability or equity instrument of another entity.

Financial assets

Initial recognition and measurement

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. 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 recognised on the trade date, i.e. the date the
Company commits to purchase or sale the asset.
However, trade receivables that do not contain a
significant financing component are measured at
transaction price.

Subsequent measurement

For purposes of subsequent measurement, financial
assets are classified in four categories:

• Debt instruments at amortised cost

• Debt instruments at fair value through other
comprehensive income (FVOCI)

• Debts instruments, derivatives and equity
instruments at fair value through profit or loss
(FVPL)

• Equity instruments measured at fair value
through other comprehensive income (FVOCI)

Debt instruments at amortised cost

A "debt instrument" is measured at the amortised
cost if both the following conditions are met:

a) The asset is held within a business model
whose objective is to hold assets for collecting
contractual cash flows, and

b) Contractual terms of the asset give rise on
specific dates to cash flows that are solely
payments of principal and interest (SPPI) on
the principal amount outstanding.

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 in to account any discount
or premium on acquisition and fees or costs that
are an integral part of the EIR. The EIR amortisation
is included in other income in the Statement of
Profit and Loss. The losses arising from impairment
are recognised in the Statement of Profit and Loss.
This category generally applies to trade and other
receivables.

Debt instrument at FVOCI

A ''debt instrument'' is classified as at the FVOCI in
both of the following criteria are met:

a) The objective of the business model is achieved
both by collecting contractual cash flows and
selling the financial assets, and

b) The asset''s contractual cash flows represent
SPPI.

Debt instruments included with in the FVOCI
category are measured initially as well as at each
reporting date at fair value. Fair value movements
are recognised in the other comprehensive income
(OCI). On de-recognition of the asset, cumulative

gain or loss previously recognised in OCI is
reclassified to the Statement of Profit and Loss.
Interest earned whilst holding FVOCI debt
instrument is reported as interest income using the
EIR method.

Debt instrument at FVPL

FVPL is a residual category for debt instruments.
Any debt instrument, which does not meet the
criteria for categorisation as at amortised cost or
as FVOCI, is classified as at FVPL.

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

Debt instruments included within the FVPL category
are measured at fair value with all changes
recognised in the Statement of Profit and Loss.

Equity investments

For the purpose of subsequent measurement,
equity instruments are classified in two categories:

- Equity instruments at fair value through profit
or loss (FVPL)

- Equity instruments at fair value through other
comprehensive income (FVOCI)

All equity investments in scope of Ind AS 109 are
measured at fair value. The Company may make
an irrevocable election to present in other
comprehensive income subsequent changes in the
fair value. The Company makes such election on
an instrument by instrument basis. The classification
is made on initial recognition and is irrevocable.

If the Company decides to classify an equity
instrument as at FVOCI then all fair value changes
on the instrument as at FVOCI, then all fair value
changes on the instrument, excluding dividends,
are recognised in the OCI. There is no recycling of
the amounts from OCI to the Statement of Profit
and Loss, even on sale of investment. However, the
Company may transfer the cumulative gain or loss
within equity.

Equity instruments included within the FVPL
category are measured at fair value with all changes
recognised in the Statement of Profit and Loss.

Impairment of Financial assets

The Company recognises loss allowance using the
expected credit loss (ECL) model for the financial
assets which are not fair valued through profit or
loss. Loss allowance for trade receivables with no
significant financing component is measured at an
amount to lifetime ECL. For all financial assets with
contractual cash flows other than trade receivable,
ECLs are measured at an amount equal to the 12-
month ECL, unless there has been a significant
increase in credit risk from initial recognition in
which case those are measured at lifetime ECL. The
amount of ECLs (or reversal), that is required to
adjust the loss allowance at the reporting date to
the amount that is required to be recognised as an
impairment gain or loss in the Statement of Profit
and Loss.

De-recognition

A financial asset (or, where applicable, a part of a
financial asset or part of Company 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
do 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, the Company continues to recognise
the transferred asset to the extent of the Company''s
continuing involvement. In that case, the Company
also recognises 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.

Financial liabilities

Financial liabilities are classified as measured at
amortised cost or FVPL. A financial liability is
classified as at FVPL if it is classified as held-for-
trading, or it is a derivative or it is designated as
such on initial recognition. Financial liabilities at
FVPL are measured at fair value and net gains and
losses, including any interest expense, are
recognised in Statement of Profit and Loss. Other
financial liabilities are subsequently measured at
amortised cost using the effective interest method.
Interest expense and foreign exchange gains and
losses are recognised in Statement of Profit and
Loss. Any gain or loss on de-recognition is also
recognised in Statement of Profit and Loss.

De-recognition

A financial liability is derecognised when the
obligation under the liability is discharged or
cancelled or expires. When an existing financial
liability is replaced by another from the same lender
on substantially different terms, or the terms of an
existing liability are substantially modified, such an
exchange or modification is treated as the de¬
recognition of the original liability and the
recognition of a new liability. The difference in the
respective carrying amounts is recognised in the
Statements of Profit and Loss.

Compound financial instruments

The liability component of a compound financial
instrument is recognised initially at fair value of a
similar liability that does not have an equity
component. The equity component is recognised
initially as the difference between the fair value of
the compound financial instrument as a whole and
the fair value of the liability component. Any directly
attributable transaction costs are allocated to the
liability and the equity components, if material, in
proportion to their initial carrying amounts.

Subsequent to the initial recognition, the liability
component of a compound financial instrument is
measured at amortised cost using the effective
interest rate method. The equity component of a
compound financial instrument is not re-measured
subsequent to initial recognition except on
conversion or expiry.

Derivative financial instruments and hedging
activities

Derivatives are only used for economic hedging
purposes and not as speculative investments.
However, where derivatives do not meet the hedge
accounting criteria, they are classified as ''held for
trading'' for accounting purposes and are accounted
for at FVPL. They are presented as current assets
or liabilities to the extent they are expected to be
settled within 12 months after the end of the
reporting period.

Derivatives are initially recognized at fair value on
the date a derivative contract is entered into and
are subsequently re- measured to their fair value
at the end of each reporting period. The accounting
for subsequent changes in fair value depends on
whether the derivative is designated as a hedging
instrument, and if so, the nature of the item being
hedged.

The Company designates their derivatives as
hedges of commodity price risk and related foreign
exchange risk associated with the cash flows of
assets and liabilities and highly probable forecast
transactions (cash flow hedges). The Company
documents at the inception of the hedging
transaction the economic relationship between
hedging instruments and hedged items including
whether the hedging instrument is expected to
offset changes in cash flows of hedged items. The
Company documents its risk management
objective and strategy for undertaking various
hedge transactions at the inception of each hedge
relationship. The full fair value of a hedging
derivative is classified as a non-current asset or
liability when the remaining maturity of the hedged
item is more than 12 months; it is classified as a
current asset or liability when the remaining
maturity of the hedged item is less than 12 months.

Cash flow hedges that qualify for hedge
accounting

The effective portion of changes in the fair value
of derivatives that are designated and qualify as
cash flow hedges is recognized in cash flow hedging
reserve within equity. The gain or loss relating to
the ineffective portion is recognized immediately
in profit or loss, within other gains/(losses).

When forward contracts are used to hedge forecast
transactions, the Company designate the full

change in fair value of the forward contract as the
hedging instrument. The gains and losses relating
to the effective portion of the change in fair value
of the entire forward contract are recognized in
the cash flow hedging reserve within equity.

Amounts accumulated in equity are reclassified to
profit or loss in the periods when the hedged item
affects profit or loss (for example, when the forecast
purchase that is hedged takes place).

When the hedged forecast transaction results in
the recognition of a non-financial asset (for
example inventory), the amounts accumulated in
equity are transferred to profit or loss as follows:

With respect to gain or loss relating to the effective
portion of the forward contracts, the deferred
hedging gains and losses are included within the
initial cost of the asset. The deferred amounts are
ultimately recognized in profit or loss as the hedged
item affects profit or loss (for example, through cost
of sales).

When a hedging instrument expires, or is sold or
terminated, or when a hedge no longer meets the
criteria for hedge accounting, any cumulative
deferred gain or loss and deferred costs of hedging
in equity at that time remains in equity until the
forecast transaction occurs. When the forecast
transaction is no longer expected to occur, the
cumulative gain or loss and deferred costs of
hedging that were reported in equity are
immediately reclassified to profit or loss within
other gains/(losses).

If the hedge ratio for risk management purposes is
no longer optimal but the risk management
objective remains unchanged and the hedge
continues to qualify for hedge accounting, the
hedge relationship will be rebalanced by adjusting
either the volume of the hedging instrument or the
volume of the hedged item so that the hedge ratio
aligns with the ratio used for risk management
purposes. Any hedge ineffectiveness is calculated
and accounted for in profit or loss at the time of
the hedge relationship rebalancing.

Derivatives that are not designated as hedges

The Company enters certain derivative contracts
to hedge risks which are not designated as hedges.
Such contracts are accounted for at fair value
through profit or loss and are included in statement
of profit and loss.

Embedded derivatives

Derivatives embedded in a host contract that is an
asset within the scope of Ind AS 109 are not
separated. Financial assets with embedded
derivatives are considered in their entirety when
determining whether their cash flows are solely
payment of principal and interest.

Derivatives embedded in all other host contract are
separated only if the economic characteristics and
risks of the embedded derivative are not closely
related to the economic characteristics and risks
of the host and are measured at fair value through
profit or loss. Embedded derivatives closely related
to the host contracts are not separated.

Offsetting

Financial assets and financial liabilities are off set
and the net amount presented in Balance Sheet
when, and only when, the Company currently has
a legally enforceable right to set off the amounts
and is intends either to settle them on a net basis
or to realise the asset and settle the liability
simultaneously.

(g) Inventories

Inventories are valued at lower of cost and net
realizable value except scrap, which is valued at net
estimated realizable value.

Cost includes all direct costs, cost of conversion
and appropriate portion of variable and fixed
production overheads and such other costs
incurred as to bring the inventory to its present
location and condition inclusive of any tax wherever
applicable.

Net realizable value is the estimated selling price
in the ordinary course of business, less the
estimated costs of completion/ reprocessing and
the estimated cost necessary to make the sale.

The net realizable value of work-in-progress is
determined with reference to the selling price of
related finished products. Raw materials and other
supplies held for use in the production of finished
goods are not written down below cost except in
cases where material prices have declined and it''s
estimated that the cost of finished goods will
exceed their net realizable value.

(h) Cash and cash equivalents

Cash and cash equivalents comprise cash at banks
and on hand and short term deposits with an

original maturity of three months or less, which are
subject to an insignificant risk of changes in value.