(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 payment 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 option¬
pricing 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 non¬
current 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 33.

• 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
40.

• Lease classification- Note 43.

• 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. For the year
ended March 31, 2025, MCA has notified Ind AS -
117 Insurance Contracts and amendments to Ind
AS 116 - Leases, relating to sale and leaseback
transactions, applicable to the Company w.e.f. April
01, 2024. The Company has reviewed the new
pronouncements and based on its evaluation has
determined that it does not have any significant
impact in its standalone financial statements.