o. Provisions and Contingencies(i) Provisions

Provisions are recognized when the
Company has a present obligation
(legal or constructive) as a result of
a past event and it is probable that
an outflow of resources embodying
economic benefits will be required
to settle the obligation and a reliable
estimate can be made of the amount
of the obligation.

If the effect of time value of money
is material, provisions are discounted
using equivalent period pre-tax
government securities interest rate.
When discounting is used, the increase
in the provision due to the passage of
time is recognized as a finance cost.
Provisions are reviewed at each balance
sheet date and are adjusted to reflect
the current best estimates.

Mines Reclamation Expenditure

The Company provides for the
expenditure to reclaim the quarries
used for mining, in statement of profit
and loss based on present value of
estimated expenditure required to
be made towards restoration and
rehabilitation at the time of vacation of
mines. Provisions are reviewed at each
balance sheet date and are adjusted to
reflect the current best estimates. The
unwinding of the discount on provision
is shown as a finance cost in statement
of profit and loss.

(ii) Contingencies

Contingent liabilities are disclosed
when there is a possible obligation as
a result of past events, the existence
of which will be confirmed only by
the occurrence or non-occurrence of
one or more uncertain future events
not wholly within the control of the

Company or when there is a present
obligation that arises from past events
where it is either not probable that an
outflow of resources will be required
to settle or a reliable estimate of
amount cannot be made. Contingent
assets are not recognized.

p. Leases

At the commencement of a lease, the
Company recognises a right of use asset
and a lease liability with respect to lease
agreements in which it is the lessee.

The lease liability is measured at the present
value of the lease payments that are not
paid at the commencement date of the
lease. The lease payments are discounted
using the interest rate implicit in the lease,
if that rate can be readily determined
otherwise incremental borrowing rate is
used to discount the lease payments. The
lease liability is subsequently remeasured
by increasing the carrying amount to reflect
interest on the lease liability, less lease
payments made.

The right of use asset is measured at
inception at the amount of the initial
measurement of the lease liability
adjusted for any lease payments made
at or before the commencement date
less any lease incentives received, plus
any initial direct costs incurred. The right
of use assets is subsequently measured
at cost less accumulated depreciation/
amortisation, accumulated impairment
losses, if any. Right of use assets are
depreciated/amortised on straight line
basis over the shorter period of lease term
and useful life of the underlying asset.

For a lease modification that is not
accounted as a separate lease, the
Company re-measure the lease liability by
discounting the revised lease payments
using revised discount rate, with
corresponding adjustment to the ‘right of
use asset’. The Company recognize gain or
loss in the statement of profit and loss for
partial or full termination of lease for lease
modifications that decrease the scope of
the lease.

The right of use assets and lease liability
is presented separately on the face of the
Balance sheet as ‘Right of Use Assets’ and
‘Lease Liabilities’ respectively.

q. Business Combination

The Company applies the acquisition
method in accounting for business
combinations. The consideration
transferred by the Company to obtain
control of a business is calculated as the
sum of the fair values of assets transferred,
liabilities incurred and assumed and the
equity interests issued by the Company
as at the acquisition date i.e. date on
which it obtains control of the acquiree
which includes the fair value of any asset
or liability arising from a contingent
consideration arrangement. Acquisition-
related costs are recognized in the
statement of profit and loss as incurred,
except to the extent related to the issue of
debt or equity securities.

Identifiable assets acquired and liabilities
assumed in a business combination are
measured initially at their fair values on
acquisition date.

Intangible Assets acquired in a business
combination and recognised separately
from Goodwill are initially recognized at
their fair value at the acquisition date
(which is regarded as their cost).

Goodwill is measured as the excess of the
aggregate of the consideration transferred
and the amount recognized for non¬
controlling interests, and any previous
interest held, over the net identifiable assets
acquired and liabilities assumed.

Subsequent to initial recognition, intangible
assets with definite useful life acquired in
a business combination are reported at
cost less accumulated amortisation and
accumulated impairment losses, on the
same basis as intangible assets that are
acquired separately.

Goodwill and Intangible assets with
indefinite useful life, if any, are tested for
impairment at the end of each annual
reporting period.

If the fair value of the net assets acquired
is in excess of the aggregate consideration
transferred, the excess is termed as
gain on bargain purchase. In case of a
bargain purchase, before recognizing
a gain in respect thereof, the Company
determines whether there exists clear
evidence of the underlying reasons for
classifying the business combination
as a bargain purchase thereafter, the
Company reassesses whether it has
correctly identified all the assets acquired
and liabilities assumed and recognizes
any additional assets or liabilities that
are so identified, any gain thereafter is
recognized in Other Comprehensive
Income ("OCI”) and accumulated in equity
as Capital Reserve. If there does not exist
clear evidence of the underlying reasons for
classifying the business combination as a
bargain purchase, the Company recognizes
the gain, after reassessing and reviewing,
directly in equity as Capital Reserve.

Contingent consideration is classified
either as equity or financial liability.
Amount classified as financial liability are
subsequently re-measured to fair value
with changes in fair value recognised in
statement of profit and loss.

r. Investment in Subsidiaries

The Company’s investments in its
subsidiaries are carried at cost less
impairment, if any. On disposal of
investments, the difference between the
net disposal proceeds and the carrying
amount is charged or credited to the
statement of profit and loss.

s. Financial Instruments

Financial assets and financial liabilities are
recognized when the Company becomes
a party to the contractual provisions of the
instruments.

(i) Financial Assets

Initial Recognition and
Measurement

All financial assets are recognized
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 assets.

These include trade receivables, cash
and cash equivalents, other bank
balances, fixed deposits with banks,
investments, loans and other financial
assets.

Classification and Subsequent
Measurement

Financial assets are subsequently
measured at amortised cost or fair
value through other comprehensive
income or fair value through profit or
loss depending on its business model
for managing those financial assets
and the asset’s contractual cash flow
characteristics.

(a) Financial Assets at Amortised
Cost

A financial asset is subsequently
measured at amortised cost if it
is held within a business model
whose objective is to hold the
asset in order to collect contractual
cash flows and the contractual
terms of the financial asset give
rise on specified dates to cash
flows that are solely payments
of principal and interest on the
principal amount outstanding.

(b) Financial Assets at Fair Value
Through Other Comprehensive
Income

A financial asset is subsequently
measured at fair value through
other comprehensive income if
it is held within a business model
whose objective is achieved by
both collecting contractual cash

flows and selling financial assets
and the contractual terms of
the financial asset give rise on
specified dates to cash flows that
are solely payments of principal
and interest on the principal
amount outstanding.

(c) Financial Assets at Fair Value
Through Profit or Loss

A financial asset which is not
classified in any of the above
categories is subsequently
measured at fair value through
profit or loss. Dividend and interest
income on financial assets at
fair value through profit or loss
is recognized as dividend and
interest income respectively and
included in ‘Other Income’.

Derecognition

The Company derecognizes a financial
asset only when the contractual rights
to the cash flows from the asset expi res
or it transfers the financial asset and
substantially all the risks and rewards
of ownership of the asset to another
entity and does not retain control of
the asset.

Impairment of Financial Assets

Financial assets, other than those
at fair value through profit or loss,
are assessed for impairment at the
end of each reporting period. The
Company recognizes a loss allowance
for expected credit losses on financial
asset. In case of trade receivables,
the Company follows the simplified
approach permitted by Ind AS 109 -
Financial Instruments for recognition
of impairment loss allowance. The
application of simplified approach
does not require the Company to track
changes in credit risk. The Company
calculates the expected credit losses
on trade receivables using a provision
matrix on the basis of its historical
credit loss experience.

(ii) Financial Liabilities

Initial Recognition and
Measurement

Financial liabilities are classified, at
initial recognition, as financial liabilities
at fair value through profit or loss,
loans and borrowings or payables or
as derivative designated as hedging
instruments in an effective hedge, as
appropriate.

All financial liabilities are recognized
initially at fair value and, in the case of
loans and borrowings and payables,
net of directly attributable transaction
costs.

The financial liabilities include trade
and other payables, loans and
borrowings including bank overdraft
and derivative financial instruments.

Classification and Subsequent
Measurement

The financial liabilities are classified as
either ‘financial liabilities at fair value
through profit or loss’ or ‘other financial
liabilities’.

(a) Financial Liabilities at Fair Value
Through Profit or Loss

Financial liabilities are classified
at fair value through profit or loss
when the financial liability is held
for trading or are designated upon
initial recognition as fair value
through profit or loss. It includes
derivative financial instruments
entered into by the Company
that are not designated as
hedging instruments in hedge
relationships. All changes in the
fair value of such liability are
recognized in the statement of
profit and loss.

(b) Other Financial Liabilities

Other financial liabilities (including
borrowings and trade and other
payables) are subsequently
measured at amortised cost using
effective interest rate method.

Derecognition

A financial liability is derecognized
when the obligation under the
liability is discharged or cancelled or
expired.

(iii) Derivative Financial Instruments
and Hedge Accounting

The Company uses derivative financial
instruments, such as foreign currency
forward contracts and cross currency &
interest rate swaps to hedge its foreign
currency risks and interest rate risks.
Such derivative financial instruments
are initially recognized at fair value on
the date on which a derivative contract
is entered into and are subsequently
re-measured at fair value. Derivative
is carried as financial assets when the
fair value is positive and as financial
liabilities when the fair value is
negative.

Any gains or losses arising from
changes in the fair value of derivatives
are taken directly to statement of profit
and loss, except for the effective portion
of cash flow hedges which is taken in
the other comprehensive income (net
of tax).

The Company uses cross currency
and interest rate swaps to hedge the
cash flows of the foreign currency
denominated debt related to variation
in foreign currency exchange rates and
interest rates. The Company also enters
into foreign currency forward contracts
to hedge the foreign currency
exchange risk arising from the forecast
purchases. The Company designates
these cross currency and interest rate
swaps and foreign currency forward
contracts in a cash flow hedging
relationship by applying the hedge
accounting principles.

These derivatives are stated at fair
value at each reporting date. Changes
in the fair value of these derivatives
that are designated and effective
as hedges of future cash flows are
recognized in other comprehensive

income (net of tax) and the ineffective
portion is recognized immediately in
statement of profit and loss. Amounts
accumulated in equity are reclassified
to profit or loss when the hedged
transaction affects the profit or loss.
However, when the hedged forecast
transaction results in the recognition of
a non-financial asset or a non-financial
liability, such gains and losses are
transferred from equity and included in
the initial measurement of the cost of
the non-financial asset or non-financial
liability.

Hedge accounting is discontinued
when the hedging instrument expires
or is sold, terminated, or exercised,
or no longer qualifies for hedge
accounting.

(iv) Financial Liabilities and Equity
Instruments

Classification as Debt or Equity

Debt and equity instruments issued
by the Company are classified as
either financial liabilities or as equity
in accordance with the substance of
the contractual arrangements and the
definition of a financial liabilities and
an equity instrument. The Company
does not have any compound financial
instrument.

Equity Instruments

An Equity instrument is any contract
that evidences a residual interest in the
assets of an entity after deducting all of
its liabilities. Equity instruments issued
by the Company are recognized at the
proceeds received. Transaction costs
related to issue of equity instruments is
reduced from equity.

(v) Offsetting of Financial Instruments

Financial assets and financial liabilities
are offset, and the net amount is
presented in the balance sheet if there
is a currently enforceable legal right to

set off the recognised amounts and
there is an intention to settle on a net
basis, or to realise the assets and settle
the liabilities simultaneously.

t. 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 insignificant risk of
changes in value.

For the purpose of the statement of cash
flow, cash and cash equivalents consist
of cash at banks and on hand and short
term deposits, as defined above, net
of outstanding bank overdraft as they
are considered an integral part of the
Company’s cash management.

u. Earnings Per Share

Basic earnings per share are calculated
by dividing the net profit or loss for the
year attributable to equity shareholders by
the weighted average number of equity
shares outstanding during the year.

For the purpose of calculating diluted
earnings per share, the net profit or
loss for the year attributable to equity
shareholders and the weighted average
number of equity shares outstanding
during the year are adjusted for the effects
of all dilutive potential equity shares.

NOTE 5 - SIGNIFICANT ACCOUNTING

JUDGEMENTS, ESTIMATES AND
ASSUMPTIONS

The preparation of the Company’s financial
statements requires management to make
judgements, estimates and assumptions
that affect the reported amounts of revenues,
expenses, assets and liabilities, and the
accompanying disclosures, and the disclosures
of contingent liabilities. Although these
estimates are based upon management’s
best knowledge of current events and actions,
actual results could differ from these estimates.
These estimates are reviewed regularly
and any change in estimates is adjusted
prospectively.

In the process of applying the Company’s
accounting policies, management has made
the following estimates, assumptions and
judgements, which have significant effect
on the amounts recognized in the financial
statements:

a. Deferred Tax Assets

The recognition of deferred tax assets
requires assessment of whether it is
probable that sufficient future taxable profit
will be available against which deferred tax
asset can be utilized. The Company reviews
at each balance sheet date the carrying
amount of deferred tax assets.

b. Property, Plant and Equipment &
Intangible Assets

The determination of depreciation and
amortisation charge depends on the useful
lives for which judgements and estimations
a re req ui red. The resid ua l va l ues, usefu l l ives,
and method of depreciation of property,
plant and equipment and intangible assets
are reviewed at each financial year end and
adjusted prospectively, if appropriate.

c. Allowances for Uncollected Trade
Receivables

Trade receivables do not carry any interest
and are stated at their transaction value
as reduced by appropriate allowances
for estimated irrecoverable amounts.
Individual trade receivables are written off
when management deems them not to be
collectible.

d. Contingencies and Litigations

Management judgement is required
for estimating the possible outflow of
resources, if any, in respect of contingencies/
claims/litigations against the Company as

it is not possible to predict the outcome of
pending matters with accuracy.

e. Mines Reclamation Obligation

The measurement of mines reclamation
obligation requires long term assumptions
regarding the phasing of the restoration
work to be carried out. Discount rates are
determined based on the government
securities of similar tenure.

f. Defined Benefit Plan

The cost of defined benefit plan and
present value of such obligation 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 rate,
future salary increases, mortality rates and
attrition rate. Due to the long- term nature
of the plan, such estimates are subject to
significant uncertainty. All assumptions
are reviewed at each reporting date. Refer
Note 38 (b) for sensitivity analysis.

g. Fair Value Measurement of Financial
Instruments

When the fair values of financial assets
and financial liabilities recorded in the
balance sheet cannot be measured based
on quoted prices in active markets, their
fair value is measured using valuation
techniques including the Discounted Cash
Flow model. 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.

(a) Includes ' 12.69 Crore (for theyear ended 31^st March, 2025: ' 13.06 Crore) for capital expenditure on
research and development.

(b) Depreciation for the year includes ' 11.74 Crore (for the year ended 31^st March, 2025: ' 9.64 Crore) on assets
during construction period.

(c) The Company surrendered land with a carrying value of ' 74.35 Crore to the Railway Authority under the
Gati Shakti Scheme for the construction of a Railway Siding to establish rail connectivity between the
Company’s plant and the nearest railway terminal. The net carrying value of the surrendered land, after
adjusting for compensation received from Railway, is included in Capital Work-in-Progress (CWIP), as the
same forms an integral part of the enabling asset - Railway Siding Connectivity.

(d) The Company transferred certain power transmission assets used for drawing power from State
Discom to the Government Transmission Corporation, in accordance with the terms of the agreement.
Consequently, the carrying value of ' 23.61 Crore relating to these assets has been charged to the
Statement of Profit and Loss under "Other Expenses.

9.3 During the year ended 31^st March, 2026, the Company’s wholly owned subsidiary, Raipur Handling and
Infrastructure Private Limited ("RHIPL”), completed a buyback of its own equity shares in accordance with
the provisions of the Companies Act, 2013 and applicable regulatory requirements. RHIPL bought back
13,99,999 equity shares having a face value of ' 10 each, at a buyback price of ' 450 per share. Since RHIPL is a
wholly owned subsidiary, the buyback does not result in any change in the Company’s ownership interest in
the subsidiary.

9.4 During the year ended 31^st March, 2026, the Company’s wholly owned subsidiary, Shree Cement East Private
Limited ("SCEPL”), completed a buyback of its own equity shares in accordance with the provisions of the
Companies Act, 2013 and applicable regulatory requirements. SCEPL bought back 30,90,00,000 equity
shares having a face value of ' 10 each, at a buyback price of ' 10.50 per share. Since SCEPL is a wholly owned
subsidiary, the buyback does not result in any change in the Company’s ownership interest in the subsidiary.

9.5 During the year ended 31^st March, 2026, the company has subscribed preference share of its Subsidiary
Shree Cement East Private Limited ("SCEPL"). These share are fully paid up as at 31^st March, 2026. SCEPL shall
have the option to redeem these preference share at any time either in full or in part, within a period of 20
years from the date of allotment. The redemption price shall be equal to face value of the preference shares,
together with any dividend accrued but unpaid up to the date of redemption.

9.6 The Company had made investment of ' 0.03 Crore in the equity shares of Shree Cement East Bengal
Foundation (‘SCEBF’), a company licensed under section 8 of the Companies Act, 2013. SCEBF is prohibited
to distribute any dividend/economic benefits to its members, hence the Company is unable to earn any
variable return/economic benefits from the voting rights through its holding in equity shares of SCEBF.
Accordingly, the aforesaid investment value of ' 0.03 Crore was charged off to the statement of profit and
loss during the year ended 31^st March, 2021. During the year ended 31^st March, 2025, SCEBF initiated voluntary
liquidation in terms of provisions of IBC, 2016 and associated regulations. Hon'ble Jaipur Bench of NCLT vide
its order dated 17^th April, 2025 approved dissolution of SCEBF.

16.1 Refer Note 46 for information about credit risk and market risk of trade receivables.

16.2 The credit period on an average ranges from 7 to 45 days.

16.3 No receivable is due from director or other officer of the Company, either severally or jointly with any person.
No receivable is due from firms or private companies respectively in which any director is a partner or a
director or a member except for as disclosed under note 41.

18.1 Includes deposits of ' 50.00 Crore (As at 31^st March, 2025: ' 41.00 Crore) are pledged with banks against
overdraft facilities. (Refer Note 24.2)

18.2 Includes ' 82.68 Crore (As at 31^st March, 2025: ' 78.54 Crore) given as security to Government department and
others.

¹ Out of the 4,88,284 shares held by Mr. Harimohan Bangur, the beneficial Interest on 10,100 shares is held by
the following Trusts/Institution (Belonging to Promoters Group):

- Sunder Devi Bangur Family Benefit Trust (Private Trust): 3000 shares

- Sri Rama Nidhi (Family Deity): 7100 shares.

² Out of the 3,89,750 shares held by Mr. Prashant Bangur, the beneficial Interest on 93,800 shares is held by
the Shree Venktesh Ayurvedic Aushdhalaya, Charitable Institution (Belonging to Promoters Group).

³ Hon'ble NCLT, Kolkata Bench vide its order dated 28^th November, 2024 has approved the Scheme of
Amalgamation of Western India Commercial Company Ltd (classified as promoter Group) with N.B.I.
Industrial Finance Co Ltd. (classified as promoter Group). The said scheme has become effective from
18^th December, 2024. Consequently, the shareholding of Western India Commercial Company Ltd stands
transferred to N.B.I. Industrial Finance Co Ltd.

19.3 The Company has only one class of equity shares having a par value of ' 10 per share. Each holder of equity
share is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the
approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend.

19.4 In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining
assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to
the number of equity shares held by the shareholders.

NOTE 33 - OTHER EXPENSES (Contd.)

33.1 Details of Corporate Social Responsibility ("CSR") Expenses:

(a) The amount required to be spent under Section 135 of the Companies Act, 2013 for the year ended 31^st
March, 2026 is ' 50.40 Crore (after adjusting excess expenses of ' 5.02 Crore of year 2024-25) {for the year
ended 31^st March, 2025: ' 47.89 Crore (after adjusting excess expenses of ' 9.10 Crore of year 2023-24)}.

(b) Corporate Social Responsibility expenses of the Company for year 2025-26 is ' 55.76 crore (for the year
ended 31^st March, 2025 is ' 52.91 crore). There is excess CSR expenses of ' 5.36 crore as on 31^st March, 2026
(' 5.02 crore as on 31^st March, 2025).

(c) CSR Expenses for the year ended 31^st March, 2025 includes ' 14.50 crore deposited to Unspent CSR
Account on account of multi-year ongoing CSR projects. Out of the amount so transferred in Unspent
CSR Account ' 10.15 crore were spent during the year ended 31^st March, 2026. The balance outstanding in
the Unspent CSR Account as at 31^st March, 2026 amounts to ' 4.35 crore (Refer Note 18 and 22.2).

(d) The projects/activities undertaken by the Company in the field of Corporate Social Responsibility fall
within the broad framework of schedule VII to the Companies Act, 2013 which interalia include education,
healthcare, sustainable livelihood, woman empowerment, rural and infrastructure development,
environment protection, support widows/dependents of martyrs of arm forces and promotion of art &
culture, epitomising a holistic approach to inclusive growth.

(e) Refer Note 41 for related party transactions in relation to Corporate Social Responsibility Expenses.

NOTE 34. CONTINGENT LIABILITIES (CLAIMS/DEMANDS NOT ACKNOWLEDGED AS DEBT)

a. Custom duty (including interest) ' 81.30 Crore (As at 31^st March, 2025: ' 78.89 Crore)

b. (i) Competition Commission of India (CCI), vide its order dated 31^st August 2016 imposed a penalty of

' 397.51 Crore on the Company for alleged violation of provisions of the Competition Act, 2002. The
Company has appealed against the said order and Competition Appellate Tribunal (COMPAT), vide its
order dated 7^th November, 2016, granted stay on CCI's order subject to deposition of 10% of penalty
amount and payment of balance amount of penalty with interest @ 12% per annum from the date of
CCI's order if the appeal is ultimately dismissed. The Company has complied with the order and the
matter is now being heard at National Company Law Appellate Tribunal (NCLAT).

(ii) In another matter, CCI vide its order dated 19^th January, 2017 imposed a penalty of ' 18.44 Crore on
the Company in connection with an enquiry in respect of a cement supply tender of Government of
Haryana. On the Company’s appeal against the said order, COMPAT granted stay on the operation of
the said CCI order. The matter is now listed before NCLAT and pending for hearing.

NOTE 34. CONTINGENT LIABILITIES (CLAIMS/DEMANDS NOT ACKNOWLEDGED AS DEBT) (Contd.)

Based on the Company’s own assessment and advice given by its legal counsels, the Company has a strong
case in both the above appeals and thus pending final disposal of the appeals, the matters have been
disclosed as contingent liability.

c. The Divisional Bench of the Hon'ble Rajasthan High Court vide Judgement dated 6^th December, 2016 has
allowed the appeal filed by Commercial Taxes Department/Finance Department of the Govt. of Rajasthan
against earlier favorable order of single member bench of the Hon'ble Rajasthan High Court in the matter
of incentives granted under Rajasthan Investment Promotion Scheme-2003 to the Company for capital
investment made in cement plants in the State of Rajasthan.

Vide the above Judgement of the Hon'ble High Court, the Company's entitlement towards Capital Subsidy
for the entitled period stands revised from "up to 75% of Sales Tax/VAT" to "up to 50% of Sales Tax/VAT". The
Company has filed Special Leave Petition before the Hon’ble Supreme Court against the above judgment
which is admitted for deciding on merits.

The Commercial Taxes Department had issued notices seeking reply for recovering differential subsidy, the
said notices are challenged by the Company before Rajasthan High Court and High Court has stayed further
proceedings by department against us.

Based on the legal opinion, it has a good case before the Hon’ble Supreme Court. Accordingly, no provision
has been made for differential subsidy (i.e. difference of 75% and 50%) amounting to ' 37.84 Crore received
and ' 317.54 Crore not received though accounted for.

NOTE 35. COMMITMENTS

a. Estimated amount of contracts remaining to be executed on capital account (net of advances) ' 491.36
Crore (As at 31^st March, 2025: ' 504.10 Crore).

b. U ncalled liability on partly paid up equity shares of ' 1.14 Crore (As at 31^st March, 2025: ' 29.14 Crore).

NOTE 36. CAPITAL WORK-IN-PROGRESS (CWIP)

a. Capital work in progress includes directly attributable expenses of ' 73.98 Crore (As at 31^st March, 2025:

' 208.61 Crore) which includes depreciation of ' 1.65 Crore (as at 31^st March, 2025: ' 26.85 Crore) on assets
during construction period.

The estimates of future salary increases have been considered in actuarial valuation after taking into
consideration the impact of inflation, seniority, promotion and other relevant factors such as supply and
demand situation in the employment market. Accordingly, planned liabilities are typically exposed to
actuarial risks such as interest rate risk, longevity risk and salary risk.

(i) Interest risk

A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by
an increase in the return on the plan’s debt investments.

(ii) Salary risk

The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan
participants. As such, an increase in the salary of the plan participants will increase the plan’s liability.

(iii) Longevity risk

The present value of the defined benefit plan liability is calculated by reference to the best estimate of
the mortality of plan participants. An increase in the life expectancy of the plan participants will increase
the plan's liability.

The Gratuity Scheme is invested in group gratuity-cum-life assurance cash accumulation policy offered by
Life Insurance Corporation of India. The gratuity plan is not exposed to any significant investment risk in
view of absolute track record, investment as per IRDA guidelines and mechanism is there to monitor the
performance of the fund.

NOTE 44. CAPITAL MANAGEMENT

The primary objective of the Company’s capital management policy is to ensure availability of funds at
competitive cost for its operational and developmental needs and maintain strong credit rating and healthy
capital ratios in order to support its business and maximize shareholder value.

The Company manages its capital structure through a balanced mix of equity and borrowings and makes
adjustments based on changing economic and business conditions. No changes were made in the objectives,
policies or process during the year ended 31^st March, 2026 as compared to previous year. There have been no
breaches of financial covenants of any interest-bearing loans and borrowings for the reported period. The
Company is not subject to any externally imposed capital requirements.

The Company monitors capital structure on the basis of debt to equity ratio. For the purpose of the Company’s
capital management, equity includes paid up equity share capital and other equity, and debt comprises of long
term borrowings and short term borrowings.

Fair Value Techniques:

The fair value of the financial assets and liabilities are included at the amount that would be received to sell an
asset or paid to transfer a liability in an orderly transaction between market participants at the measurement
date. The following methods and assumptions were used to estimate the fair values:

a) Fair value of cash and short term deposits, trade receivables, trade payables, current loans, other current
financial assets, short term borrowings and other current financial liabilities approximate to their carrying
amount largely due to the short term maturities of these instruments.

b) Long term fixed rate and variable rate receivables/borrowings are evaluated by the Company based on
parameters such as interest rate, specific country risk factors, credit risk and other risk characteristics. Fair
value of interest free SGST loan from Government approximates their carrying values. For fixed interest
rate borrowings, fair value is determined by using Discounted Cash Flow (DCF) method using discount rate
that reflects the issuer’s borrowings rate. Risk of non- performance for the Company is considered to be
insignificant in valuation.

c) The fair values of derivatives are estimated by using pricing models, where the inputs to those models are
based on readily observable market parameters basis contractual terms, period to maturity and market
parameters such as interest rates, foreign exchange rates and volatility. These models do not contain

a high level of subjectivity as the valuation techniques used do not require significant judgement and
inputs thereto are readily observable from actively quoted market prices. Management has evaluated the
credit and non-performance risks associated with its derivative counterparties and believe them to be
insignificant and not warranting a credit adjustment.

d) The fair values of mutual funds are at published Net Asset Value (NAV).

Fair Value Hierarchy

Quoted prices/published Net Asset Value (NAV) in an active market (Level 1): This level of hierarchy includes
financial assets that are measured by reference to quoted prices (unadjusted) in active markets for identical
assets or liabilities and financial instruments like mutual funds for which NAV is published by mutual funds. This
category consists mutual fund investments, exchange traded fund and STRIPS issued by the Government of
India.

Valuation techniques with observable inputs (Level 2): This level of hierarchy includes financial assets and
liabilities measured using inputs other than quoted prices included within Level 1 that are observable for the
asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).

Valuation techniques with significant unobservable inputs (Level 3): This level of hierarchy includes financial
assets and liabilities measured using inputs that are not based on observable market data (i.e., unobservable
inputs). Fair values are determined in whole or in part, using a valuation model based on assumptions that are
neither supported by prices from observable current market transactions in the same instrument nor are they
based on available market data.

The following table provides the fair value measurement hierarchy of the Company’s financial asset and financial
liabilities grouped into Level 1 to Level 3 as described below:

NOTE 46. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (Contd.)

The impact on profit before tax is due to change in the fair value of monetary assets and liabilities including non-
designated foreign currency derivatives.

The following tables demonstrate the sensitivity in the USD, EUR and GBP to the Indian Rupee with all other
variable held constant.

NOTE 46. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company’s principal financial liabilities, other than derivative, comprise loans and borrowings and trade
and other payables. The main purpose of these financial liabilities is to manage finances for the Company’s
operations. The Company has loans, trade and other receivables, cash and short-term deposits that arrive
directly from its operations. The Company also holds fair value through profit or loss investments and enters into
derivative transactions. The Company is exposed to market risk, credit risk and liquidity risk.

The Company manages market risk through a treasury department, which evaluates and exercises independent
control over the entire process of market risk management. The treasury department recommends risk
management objectives and policies, which are approved by senior management and the Risk Management
Committee. The activities of this department include management of cash resources, implementing hedging
strategies for foreign currency exposures, borrowing strategies and ensuring compliance with market risk limits
and policies. The Board of Directors reviews and agrees policies for managing each of these risks which are
summarized below:

Market Risk and Sensitivity

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market prices. Market risk comprises of currency rate risk, interest rate risk and commodity price
risk. Financial instruments affected by market risk include loans and borrowings, deposits, investments and
derivative financial instruments. Foreign currency risk is the risk that the fair value or future cash flows of financial
instrument will fluctuate because of changes in foreign exchange rates. Interest rate risk is the risk that the fair
value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. This
is based on the financial assets and liabilities held as at 31^st March, 2026 and 31^st March, 2025.

The sensitivity analysis excludes the impact of movement in market variables on the carrying value of post¬
employment benefit obligations, provisions and on non- financial assets and liabilities. The sensitivity of the
relevant statement of profit and loss item is the effect of the assumed changes in respective market rates. The
Company’s activities expose it to a variety of financial risk including the effect of changes in foreign currency
exchange rates and interest rates. The Company uses derivative financial instruments such as foreign exchange
forward contracts and cross currency and interest rate swaps of varying maturity depending upon the underlying
contract and risk management strategy to manage its exposures to foreign exchange fluctuation and interest
rates.

Interest Rate Risk and Sensitivity

The Company is not exposed to the risk of changes in market interest rates as the Company has not taken any
loans and borrowings with floating interest rates.

Foreign Currency Risk and Sensitivity

The Company has foreign currency payables for supply of fuel, raw material and equipment and is therefore
exposed to foreign currency exchange risk. The Company uses foreign currency forward contracts to eliminate
the currency exposures.

The assumed movement in exchange rate sensitivity analysis is based on the currently observable market
environment.

Commodity Price Risk

Being energy intensive operations, cement plants are predominantly dependent upon coal/petcoke to meet
their fuel requirement. Dependence on conventional one dimensional fuel source can hinder the growth and
create business continuity risk as well. To mitigate this risk the Company take following steps:

(i) Designed plants and processes to enable their operations based on multi-fuels and give flexibility to choose
fuel basis the availability and at competitive cost.

(ii) Enhancing the share of alternative fuels to replace the usage of coal and petcoke.

(iii) Procuring coal from domestic sources (linkage and captive coal block) to reduce dependency on imported
coal.

Credit Risk

Credit risk is the risk that the counter party will not meet its obligation under a financial instrument or customer
contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily
trade receivables) and from its investing activities including deposits with banks, mutual funds and other
financial instruments.

Trade Receivables

The Company extends credit to customers in normal course of business. The Company considers factors such as
credit track record in the market and past dealings for extension of credit to customers. The Company monitors
the payment track record of the customers. Outstanding customer receivables are regularly monitored. The
Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located
in several jurisdiction and industries and operate in largely independent markets. The Company has also taken
advances and security deposits from its customers which mitigate the credit risk to an extent.

Financial Instruments and Cash Deposits

The Company considers factors such as track record, size of the institution, market reputation and service
standards to select the banks with which balances and deposits are maintained. Investments of surplus funds
are made only with approved counterparties. The maximum exposure to credit risk for the components of the
balance sheet is ' 10502.45 Crore as at 31^st March, 2026 and ' 8344.27 Crore as at 31^st March, 2025, which is the
carrying amounts of cash and cash equivalents (excluding cash on hand), other bank balances, investments
(other than investments in subsidiary), trade receivables, loans and other financial assets.

Liquidity Risk

Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral
obligations without incurring unacceptable losses.

The Company monitors its risk to a shortage of funds using a recurring planning tool. This tool considers the
maturity of both its financial investments and financial assets (i.e. trade receivables and other financial assets)
and projected cash flows from operations. The Company’s objective is to maintain a balance between continuity
of funding and flexibility through the use of working capital loans, letter of credit facility, bank loans and credit
purchases.

The table below provides undiscounted cash flows (excluding transaction cost on borrowings) towards non¬
derivative financial liabilities and net-settled derivative financial liabilities into relevant maturity based on the
remaining period at the balance sheet date to the contractual maturity date:

Cash Flow Hedges

The objective of cross currency & interest rate swaps and interest rate swaps is to hedge the cash flows of the
foreign currency denominated debt related to variation in foreign currency exchange rates and interest rates.
The hedge provides for exchange of notional amount at agreed exchange rate of principle at each repayment
date and conversion of variable interest rate into fixed interest rate as per notional amount at agreed exchange
rate. The Company also enters into foreign currency forward contracts to hedge the foreign currency exchange
risk arising from the forecasted purchases. These forward contracts are designated as cash flow hedges. The
Company is following hedge accounting for cross currency & interest rate swaps, interest rate swaps and foreign
currency forward contracts based on qualitative approach.

The Company is having risk management objectives and strategies for undertaking these hedge transactions.
The Company has maintained adequate documents stating the nature of the hedge and hedge effectiveness
test. The Company assesses hedge effectiveness based on following criteria:

i. An economic relationship between the hedged item and the hedging instrument;

ii. The effect of credit risk; and

iii. Assessment of the hedge ratio.

The Company designates foreign currency forward contracts to hedge its currency risk and generally applies
hedge ratio of 1:1.

All these derivatives have been marked to market to reflect their fair value and the fair value differences
representing the effective portion of such hedge have been taken to equity.

NOTE 48. COLLATERALS

Inventories, Trade Receivables, Other Current Assets, some of the fixed deposits, Property, Plant and
Equipment are hypothecated/mortgaged/pledged as collateral/security against the borrowings (Refer Note 21
and 24).

NOTE 54. FINANCIAL RATIOS (Contd.)

54.3. 'Return on Equity Ratio’, ‘Net Profit Ratio’ and ‘Return on Capital Employed’ has increased majorly due to
decrease in depreciation and amortization expenses and increase in revenue from operations in current
financial year as compared to previous financial year.

54.4. ' Inventory Turnover' ratio has increased majorly due to decrease in average inventory and increase in
revenue from operations in current financial year as compared to previous financial year.

NOTE 55.

In pursuance of the Survey conducted u/s 133A of the Income Tax Act, 1961 at the Company's premises in the
month of June’23, the Company had received notice(s) from the Department for reopening assessments of
previous year(s). These notice(s) have been quashed by Hon’ble High Court in Aug’25/Sep’25. Having considered
the facts and legal advice, the Company has not identified need for any adjustments to the current or prior
period financial statements.

NOTE 56.

(a) On 21^st November, 2025, the Government ofIndia notified the four Labour Codes (consolidating 29
existing labour laws, collectively referred to as the "New Labour Codes"). The Company has assessed
and disclosed the incremental impact of these changes, taking into consideration the best information
available along with the FAQs released by the Ministry of Labour & Employment and the Institute of
Chartered Accountants of India. The Company has restructured the compensation of its employees with
effect from 1^st April, 2026 and assessed the impact of the changes consistent with the Labour Codes, draft
rules, and FAQs. Consequently, the Company has recognized ' 55.99 Crore towards additional employee
benefit obligations during the year ended 31^st March, 2026 under "Employee Benefits Expenses". The
Company continues to monitor the finalisation of Central and State Rules and related clarifications, and
will provide appropriate accounting effects as needed based on such developments.

(b) During the year ended 31^st March, 2025, employee cost and other expenses includes ' 23.22 Crore and ' 7.44
Crore on account of voluntary separation scheme of employees and contract workers respectively.

NOTE 57. OTHER REGULATORY DISCLOSURE

(a) The Company do not have any charges or satisfaction which is yet to be registered with Registrar of
Companies (ROC) beyond the statutory period.

(b) The Company does not have any Benami Property. No proceeding is initiated/pending against the
company under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

(c) The Company has not traded or invested in any Crypto currency or Virtual Currency during the current and
prevous financial year.

(d) The Company is in compliance with the number of layers prescribed under clause (87) of section 2 of the
Companies Act read with the Companies (Restriction on number of Layers) Rules, 2017.

(e) The Company has not been declared a wilful defaulter by any bank or financial institution or other lender (as
defined under the Companies Act, 2013) or consortium thereof, in accordance with the guidelines on wilful
defaulters issued by the Reserve Bank of India.

(f) The Company does not have transaction that is not recorded in the books of accounts and that has been
surrendered or disclosed as income during the current and previous financial year in the tax assessments
under the Income Tax Act, 1961 or any other relevant provisions of the Income Tax Act, 1961.

NOTE 57. OTHER REGULATORY DISCLOSURE (Contd.)

(g) (i) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies),

including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever
by or on behalf of the company (Ultimate Beneficiaries) or

b. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(ii) The Company has not received any fund from any person(s) or entity(ies), including foreign entities
(Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company
shall:

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever
by or on behalf of the Funding Party (Ultimate Beneficiaries) or

b. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(h) As on 31^st March, 2026 there is no unutilised amounts in respect of any issue of securities and long term
borrowings, from banks and financial institutions. The borrowed funds have been utilised for the specific
purpose for which the funds were raised.

NOTE 58.

Previous year figures have been regrouped and rearranged wherever necessary. However, such regrouping and
reclassification has no impact on the Equity for the previous financial year.

NOTE 59.

Figures less than ' 50,000 have been shown at actual, wherever statutorily required to be disclosed, as the figures
have been rounded off to the nearest Crore.