Provision for Employee Benefits
Accounting Policy

A provision is recognized when the Company has a present obligation (legal or constructive) as a result of past event, 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 the time value of money is material, provisions are discounted using a current pre-tax
rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the
passage of time is recognised as a finance cost.

Terms and conditions of the above Financial Liabilities:

- Trade and Other Financial Liabilities (other than Security Deposits) are non-interest bearing. For maturity profile of Trade Payables and
Other Financial Liabilities, refer note 39.

Note 15 : Other Current Liabilities
Accounting Policy
Contract Liabilities

A contract liability is the obligation to transfer goods or services to a customer for which the Company has received consideration
(or an amount of consideration is due) from the customer. If a customer pays consideration before the Company transfers goods or
services to the customer, a contract liability is recognised when the payment is made, or the payment is due (whichever is earlier).
Contract Liabilities in respect of advance from customers is disclosed under "other current liabilities". Contract liabilities are recognised
as revenue when the Company performs under the contract.

Note 17 : Revenue from Operations
Accounting Policy
Revenue recognition

Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer at an amount that
reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. The Company has generally
concluded that it is the principal in its revenue arrangements because it typically controls the goods or services before transferring them
to the customer. In determining the transaction price for the sale of goods, the Company considers the effects of variable consideration,
the existence of significant financing components, noncash consideration, and consideration payable to the customer (if any).

Sale of Goods

Revenue, including subsidy, in respect of sale of goods is recognised at a point in time when control of the goods is transferred, i.e. the
goods are delivered to the buyer, the buyer has full discretion over the goods and there is no unfulfilled obligation that could affect the
buyer's acceptance of the goods. Revenue (other than subsidy) from the sales is recognised based on price specified in the contract, net
of estimated volume discount. Amounts disclosed as revenue are net of returns and allowances, trade discounts, rebates and goods &
services tax (GST). The Company collects GST on behalf of the government and therefore, these are not economic benefits flowing to the
Company. Hence, these are excluded from the revenue.

The Company does not expect to has any contracts where the period between the transfer of the promised goods or services to the
customer and payment by the customer exceeds one year. As a consequence, the Company does not adjust any of the transaction prices
for the time value of money.

Subsidy on Urea including freight have been accounted on the basis of notified concession prices as under:

(i) New Pricing Scheme (NPS) - Stage III and Modified NPS III.

(ii) New Urea Policy 2015.

(iii) New Investment Policy 2012 (amended); and

(iv) Uniform Freight Policy.

The concession price and freight are accounted based on notified prices, further adjusted for input price escalation/ de-escalation and
as estimated by the management based on the prescribed norms in line with known policy parameters.

Subsidy on Phosphatic and Potassic (P&K) fertilisers has been accounted for as per the concession rates based on Nutrient Based Policy
and Freight Subsidy has been accounted for in line with the policy, notified by the Government of India.

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

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

(e) The Company had received a demand of Rs. 3.52 Crore plus penalty (Previous Year: Rs. 3.52 Crore) from Sales Tax
Department, Kota in an earlier year towards use of natural gas for ammonia fuel, power and steam generation for the
period April, 1996 to May, 2001. The Company has obtained a stay from Hon'ble High Court of Rajasthan, Jodhpur on
13th July, 2001 for the period from 1996-97 to 1997-98 and on 17th August, 2001 for the period from 1998-99 to 2001-02
- Upto May 2001. However, in the event of the Company have to pay the above, it is reimbursable by Fertiliser Industry
Coordination Committee (FICC) / Government of India under Subsidy Scheme.

Based on favorable decisions in similar cases, legal opinion taken by the Company, discussions with the solicitors, etc.,
the Company believes that there is fair chance of decisions in its favour in respect of all the items listed above and hence
no provision is considered necessary against the same.

In respect of above contingent liabilities, it is not practicable for the Company to estimate the timing of cash outflows, if
any, pending resolution of the respective proceedings.

(ii) Contingent Assets (not recognised for) :

Accounting Policy

A contingent asset is a possible asset that arises from 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.

28. Segment Information
Operating Segment
Accounting Policy

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker.
Chief operating decision maker considers the business activities in terms of nature of products i.e., manufacturing / marketing of
fertilisers & other agri-inputs. The analysis of geographical segments is based on the location of customers.

The Managing Director and Chief Financial Officer of the Company have been identified as the chief operating decision maker
(CODM) as defined by Ind AS 108, 'Operating Segments'. The CODM evaluates the Company's performance and allocates resources
based on an analysis of various performance indicators.

The Company is in the business of manufacturing / marketing of Fertilisers and other Agri-inputs. As defined by Ind AS-108,
'Operating Segments', the Chief Operating Decision Maker (CODM) of the Company had identified and determined the business
into reportable segments namely (a) Own Manufactured Fertilisers, (b) Complex Fertilisers, (c) Crop Protection Chemicals and
Speciality Nutrients.

Accordingly, the segment information is provided under the reportable segments (a) Own manufactured Fertilisers, (b) Complex
Fertilisers, (c) Crop Protection Chemicals and Speciality Nutrients; and (d) Others including upcoming Technical Ammonium Nitrate
Plant . In accordance with Ind AS-108 on Operating Segments, a description of the types of products and services provided by each
reportable segment is as follows:

Own Manufactured Fertilisers segment includes manufacture and marketing of Urea.

Complex Fertilisers segment includes purchase and sale of DAP, MOP and various grade of NPK fertilisers.

Crop Protection Chemicals and Speciality Nutrients segment includes purchase and sale of Crop Protection Chemicals and Speciality
Nutrients

Others segment includes upcoming Technical Ammonium Nitrate Plant and others.

30 Gratuity and Other Employment Benefit Plans:

Accounting Policy

(i) Provident fund of the Company except erstwhile shipping division of the Company is a defined contribution scheme
with effect from September 01, 2021, as the Company had initiated the process of surrender of exemption granted to
CFCL Employees Provident Fund Trust and transferred the accumulated provident fund balance of employees to the fund
administered and managed by the Government of India. Thus, the Company makes monthly contributions at prescribed
rates towards Provident Fund to a Fund administered and managed by the Government of India. The Company has no further
obligations once the contributions have been made.

Further, during the current Financial Year, Provident fund of Erstwhile Shipping Division of the Company has initiated
the process of surrender of exemption granted to India Steamship Staff Provident Fund and transferred the accumulated
provident fund balance of employee to the fund administered and managed by the Government of India. Thus, Erstwhile
Shipping Division of the Company is a defined contribution scheme with effect from October 01, 2024 and the division
makes monthly contributions at prescribed rates towards Fund administered and managed by the Government of India.
The Company's contribution paid / payable during the year to Pension Fund, Provident Fund and Superannuation Fund are
recognised in the Statement of Profit and Loss.

Pension Fund of the Company is a defined contribution scheme. The Company has no further obligation. The Company
recognizes contribution payable to the provident fund scheme as an expenditure when an employee renders the related
service. If the contribution payable to the scheme for service received before the balance sheet date exceeds the contribution
already paid, the deficit payable to the scheme is recognized as a liability.

(ii) Superannuation Fund is a defined contribution scheme. Liability in respect of Superannuation Fund to the concerned
employees of the Company is accounted for as per the Company's Scheme and contributed to concerned insurers every
year. The Company does not have any other obligation, other than the contribution payable to the superannuation fund. The
Company recognizes contribution payable to the superannuation fund scheme as an expenditure when an employee renders
the related service. If the contribution payable to the scheme for service received before the balance sheet date exceeds the
contribution already paid, the deficit payable to the scheme is recognized as a liability.

(iii) Gratuity liability is a defined benefit obligation and is provided for on the basis of an actuarial valuation on projected unit
credit method made at the end of each financial year. Gratuity plan of the Company is funded with insurance companies to
cover the gratuity liability of the employees. The difference between the actuarial valuation of the gratuity of employees at
the year-end and the balance of funds with insurance companies is provided for as liability in the books.

(iv) Retirement benefit in the form of post-retirement medical benefits is a defined benefit obligation of the Company and is
provided for on the basis of actuarial valuation on projected unit credit method made at the end of each financial year.

(v) Accumulated leaves, which are expected to be utilized within the next 12 months, are treated as short-term employee
benefit. The Company measures the expected cost of such absences as the additional amount that it expects to pay as a result
of the unused entitlement that has accumulated at the reporting date. The Company treats accumulated leaves expected

to be carried forward beyond twelve months, as long-term employee benefit for measurement purposes. Such long-term
compensated absences are provided for based on the actuarial valuation using the projected unit credit method at the year-
end. The Company presents the entire leaves as a current liability in the balance sheet since it does not have an unconditional
right to defer its settlement for 12 months after the reporting date.

(vi) Long service awards are other long-term benefits accruing to all eligible employees, as per Company's scheme. The cost of
providing benefit under long service awards scheme is determined on the basis of actuarial valuation using the projected unit
credit method at the reporting date. This is unfunded defined benefit scheme.

(vii) Settlement allowance are other long-term benefits accruing to the eligible employees, as per Company's scheme. The cost of
providing benefit under settlement allowance is determined on the basis of actuarial valuation using the projected unit credit
method at the reporting date. This is unfunded defined benefit scheme.

The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by
reference to market yields at the end of the reporting period on government bonds that have terms approximating to the
terms of the related obligation.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair
value of plan assets. This cost is included in employee benefits expense in the Statement of Profit and Loss.

Re-measurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the
period in which they occur, directly in other comprehensive income and such re-measurement gain / (loss) are not reclassified to
the Statement of Profit and Loss in the subsequent periods. They are included in retained earnings in the Statement of Changes in
Equity.

a) Gratuity

The Company has a defined benefit gratuity plan. Benefit is being paid as under-

A) In case of retirement or death of an employee while in service of the Company, the gratuity will be payable as under:

i) Completed continuous service of 5 years and above upto 20 years - gratuity equivalent to 15 days last drawn salary
for each completed year of service.

ii) Completed continuous service of above 20 years - gratuity equivalent to 15 days last drawn salary for first 20 years
and 20 days last drawn salary for each completed year of service after 20 years.

B) In case of resignation or termination of an employee, where the employee has completed 5 years of continuous service
with the Company, gratuity equivalent to 15 days last drawn salary for each completed year of service shall be payable.
In case of erstwhile Shipping Division, the Company has a defined benefit gratuity plan. Every employee who has
completed five years or more of service gets a gratuity on departure at the rate of 15 days last drawn salary for each
completed year of service.

The Scheme is funded with insurance company in the form of a qualifying insurance policy except in the case of crew
employees of the division. The fund has the form of a trust and it is governed by the Board of Trustees

The Board of Trustees of Gratuity Trust are responsible for the administration of the plan assets and for the
definition of the investment strategy. The Board of Trustees reviews the level of funding and investment
and such a review includes the asset-liability matching strategy and investment risk management policy.
The Board of Trustees decides its contribution based on the results of its review. Generally, they aims to have a portfolio
mix of equity instruments and debt instruments.

b) Post Retirement Medical Benefit Plan

The Company has post retirement medical benefit schemes in the nature of defined benefit plan which is unfunded.

c) Provident Fund

The Company had set up provident fund trusts, which were managed by the Trustees. Provident funds set up by employers,
which requires interest shortfall to be met by the employer, has been treated as defined benefit plan till August 31,2021.
During the earlier year, the Company had initiated the process of surrender of exemption granted to CFCL Employees'
Provident Fund and transferred the accumulated provident fund balance of employees to the Regional Provident Fund
Commissioner ('RPFC'). In view of the above, the Company remits the monthly contribution of Provident Fund to RPFC with
effect from September 01,2021. Therefore, contribution to Provident Fund is treated as Defined Contribution Plan with effect
from September 01,2021 except contribution to Provident Fund of erstwhile shipping division of the Company.

Further, during the current Financial Year, Provident fund of Erstwhile Shipping Division of the Company has initiated
the process of surrender of exemption granted to India Steamship Staff Provident Fund and transferred the accumulated
provident fund balance of employee to the Regional Provident Fund Commissioner ('RPFC'). In view of the above, the Division
remits the monthly contribution of Provident Fund to RPFC with effect from October 01, 2024. Therefore, contribution to
Provident Fund is treated as Defined Contribution Plan with effect from October 01,2024.

The following tables summarise the components of net benefit expense recognised in the Statement of Profit and Loss and the
funded status and amounts recognised in the Balance Sheet for the respective plans:

Sensitivities due to mortality & withdrawals are not material and hence impact of change is not calculated.

Sensitivities as to rate of inflation, rate of increase of pension payment, rate of increase of pensions before retirement & life
expectancy are not applicable being a lump sum benefit on retirement.

The sensitivity analysis above have been determined based on a method that extrapolates the impact on defined benefit
obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period.

The weighted average duration of the defined benefit plan obligation at the end of the reporting period is 14.71 years for
Gratuity Plan and 14.71 years for Post Retirement Medical Benefits Plan (Previous Year : 14.70 years for Gratuity Plan and 14.64
years for Post Retirement Medical Benefits Plan).

31 Subsidies

(a) Nitrogenous Fertilisers are under the Concession Prices for urea under New Urea Policy 2015, New Pricing Scheme - Stage III,
New Investment Policy 2012 (amended), Modified New Pricing Scheme - Stage - III and Uniform Freight Policy, which were
further adjusted for input price escalation / de- escalation, as estimated on the basis of the prescribed norms in line with
known policy parameters.

Contribution from sale of surplus ammonia has been accounted for in accordance with the known policy parameters.
Current year's subsidy income of Urea has been increased by Rs. 2.07 Crore (Previous Year: Rs. 31.00 Crore), pertaining to
earlier years, but determined during the year.

(b) Subsidy on Phosphatic and Potassic (P&K) fertilisers has been accounted for as per the concession rates based on Nutrient
Based Subsidy Policy and Freight subsidy has been accounted for in line with the policy,notified by the Government of India.

32 Leases
Accounting Policy
Company as a lessee:

Leases are recognised as a Right-of-Use asset and a corresponding liability at the date at which the leased asset is available for use
by the Company. Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include
the net present value of the following lease payments:

• Fixed payments (including in-substance fixed payments), less any lease incentives receivable.

• Variable lease payments.

• Amount expected to be payable by the Company under residual value guarantees, if any.

• the exercise price of a purchase option if the Company is reasonably certain to exercise that option, and

• payments of penalties for terminating the lease, if the lease term reflects the Company exercising that option.

Right-of-Use assets are measured at cost comprising the following:

• The amount of initial measurement of lease liability.

• Any lease payment made at or before the commencement date less any lease incentive received.

• Any initial direct cost and restoration cost.

Payments associated with short-term leases of equipment and all leases of low-value assets are recognised on a straight-line basis
as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less. Low-value assets comprise
Information technology / Computer equipment and small items of office furniture.

This note provides information for the leases where the Company is a lessee. The Company leases various offices and lease periods
are generally fixed ranging from eleven months to nine years, but may have extension options.

Amounts recognised in the Standalone Statement of Profit and Loss relating to Leases

The expected volatility was determined based on historical volatility data. For calculating volatility, the Company had considered
the daily volatility of the stock prices of the Company on National Stock Exchange of India Limited over a period prior to the date
of grant, corresponding with the expected life of the options.

In financial year 2010-11, CFCL Employees Welfare Trust ("Trust") was constituted, inter alia, for the purpose of subscribing or
acquiring equity shares of the Company from the Company or Secondary market, to hold the shares and to allocate or transfer
these shares to eligible employees of the Company from time to time on the terms and conditions specified under the Employees
stock option scheme. The Board of Directors at its meeting held on May 08, 2010 had approved grant of financial assistance upto
Rs. 30.00 Crore by the Company to Trust in such manner and on such terms as agreed between the trustee(s) of the Trust and
Managing Director of the Company for the purpose of subscribing or acquiring shares of the Company. In previous financial year
all the outstanding options have been excercised, accordingly Trust is not holding any equity shares of the Company.

36 Income Tax Expense
Accounting Policy

Tax expense or credit comprises of current income tax and deferred tax. Current income-tax expense or credit is measured at the
amount expected to be paid to the taxation authorities in accordance with the Income-tax Act, 1961 enacted in India. The tax
rates and tax laws used to compute the amount of current income tax are those that are enacted or substantively enacted, at the
reporting date. Deferred Income tax is determined using tax rates (and laws) that have been enacted or substantively enacted, at
the reporting date and are expected to apply when the related deferred income tax assets are realised, or the deferred income tax
liabilities are settled.

Current income tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in OCI or in equity).
Current tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity.

Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities and
their carrying amounts for financial reporting purposes at the reporting date.

Deferred tax liabilities are recognised for all taxable temporary differences, except:

- When the deferred tax liability arises from an asset or liability in a transaction that is not a business combination and, at the time
of the transaction, affects neither the accounting profit nor taxable profit or loss; and

- In respect of taxable temporary differences associated with investments in subsidiaries and interest in joint venture, when the
timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not
reverse In the foreseeable future.

Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and any unused
tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the

deductible temporary differences and the carry forward of unused tax credits and unused tax losses can be utilised.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer
probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised
deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future
taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised
or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting
date.

Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in OCI or in equity). Deferred
tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity.

Deferred tax assets and deferred tax liabilities are off-set if a legally enforceable right exists to set-off current tax assets against
current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

Minimum Alternate Tax (MAT) paid in a year is charged to the Statement of Profit and Loss as current tax. The Company recognizes
MAT credit available as an asset only to the extent that there is convincing evidence that the Company will pay normal income tax
during the specified period, i.e., the period for which MAT credit is allowed to be carried forward. In the year in which the Company
recognizes MAT credit as an asset in accordance with the accounting framework and other applicable accounting pronouncements,
the said asset is created by way of credit to the Statement of Profit and Loss and shown as "MAT Credit Entitlement" and grouped
under Deferred Tax. The Company reviews the "MAT Credit Entitlement" asset at each reporting date and writes down the asset to
the extent the Company does not have convincing evidence that it will pay normal tax during the specified period.

The major components of Income Tax Expense are:

Note: During the year ended March 31,2025, the Company utilised the entire balance of Minimum Alternate Tax (MAT) credit available.
Accordingly, the Company has irrevocably opted to adopt the concessional tax regime under Section 115BAA of the Income Tax Act,
1961, introduced by the Taxation Laws (Amendment) Ordinance, 2019. This option shall be effective from the financial year 2025-26.
In view of this development, the Company has re-measured its deferred tax assets and liabilities as at March 31, 2025, using the
applicable tax rate of 25.168% (inclusive of surcharge and cess). As a result, an amount of Rs. 522.12 Crore, previously recognised up
to March 31, 2024, has been adjusted against the respective components of deferred tax assets and liabilities as at March 31, 2025.
The re-measurement has been carried out in accordance with the principles laid down under Ind AS 12 - Income Taxes, and the
impact has been recognised in the Statement of Profit and Loss.

The Company has long term / short term capital losses, to the tune of Rs. 1.28 Crore (Previous Year: Rs. 15.54 Crore) that are available
for offsetting for two to three years against future taxable profits (long term) of the Company. Deferred tax assets have not been
recognised in respect of above losses as at March 31, 2025 as there are no other tax planning opportunities or other evidence of
recoverability in the near future.

Non-Current Tax Assets of Rs. 39.67 Crore (net of provisions Rs. 487.34 Crore) [Previous Year : Rs. 138.64 Crore (net of provisions Rs.
585.67 Crore)]

37 Fair Values

The management assessed that fair value of financial assets and liabilities approximates their carrying amount.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a
current transaction between willing parties, other than in a forced or liquidation sale.

The following methods and assumptions were used to estimate the fair values:

(i) Derivative financial instruments - The fair value of foreign exchange forward contracts is determined using the foreign
exchange spot and forward rates at the balance sheet date. The derivatives are entered into with the banks / counterparties
with investment grade credit ratings.

(ii) Long term Security Deposits / Employee loans - The fair value of security deposits / employee loans approximates the carrying
value and hence, the valuation technique and inputs have not been given.

(iii) Floating Rate Borrowings / Lease Liabilities - The fair values of the Company's interest bearing borrowings are determined by
using discounted cash flow method using discount rate that reflects the issuer's borrowing rate as at the end of the reporting
period. The own non-performance risk as at March 31, 2025 was assessed to be insignificant. There are no floating rate
borrowing as at March 31,2025

(iv) The carrying amount of bank deposits, trade receivables, cash and cash equivalents, investment at amortised cost, other
current financial assets, trade payables, fixed rate borrowings and other current financial liabilities are considered to be the
same as their fair values, due to their short term nature.

(v) The fair value of investments carried at fair value through profit and loss is determined using Income Approach, Market
Approach and Net Assets Value Method. Determining whether the investments in subsidiaries are impaired requires an
estimate of the value in use of investments. In considering the value in use, the management anticipates the future growth
rates, discount rates and other factors of the underlying businesses.

38 Fair Value Measurements
Accounting Policy
Derivative Financial Instruments

Initial Recognition and Subsequent Measurement

Derivatives are initially recognised at fair value on the date of derivative contract and are subsequently re-measured at fair value
at the end of each reporting period. The resulting gains / losses are recognised in the Statement of Profit and Loss immediately
unless the derivative is designated and effective as a hedging instrument, in which event the timing of recognition in profit or
loss / inclusion in the initial cost of non-financial asset depends on the nature of the hedging relationship and the nature of the
hedged item. The Company complies with the principles of hedge accounting where derivative contracts are designated as hedge
instruments. At the inception of the hedge relationship, the Company documents the economic relationship between the hedging
instrument and the hedged item including whether the changes in the cash flows of the hedging instrument are expected to offset
changes in the cash flows of hedged items, along with the risk management objectives and its strategy for undertaking hedge
transaction.

The Company has designated certain derivatives as hedge of foreign exchange risk associated with the cash flows of highly
probable forecast transactions with borrowings.

Financial Instruments

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.

(a) 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. Transaction costs of financial
assets carried at fair value through profit or loss are expensed in profit or loss. 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 that the Company commits to purchase or sell the asset.

Subsequent Measurement
Debt Instruments

Subsequent measurement of debt instruments depends on the Company's business model for managing the asset and the
cash flow characteristics of the asset. For the purposes of subsequent measurement, debt instruments are classified in the
following three categories:

- Debt instruments at amortised cost.

- Debt instruments at fair value through other comprehensive income (FVTOCI); and

- Debt instruments at fair value through profit or loss (FVTPL).

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 specified 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 into account any discount or premium on acquisition and fees or costs
that are an integral part of the EIR. The EIR amortisation is included in finance income in the profit or loss. The losses arising
from impairment are recognised in the profit or loss.

Debt Instruments at FVTOCI

A debt instrument is classified as at the FVTOCI if 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 within the FVTOCI category are measured initially as well as at each reporting date at fair value.
Fair value movements are recognized in the OCI. However, the Company recognizes interest income, impairment losses &
reversals and foreign exchange gain or loss in the Statement of Profit and Loss. On derecognition of the asset, cumulative gain
or loss previously recognised in OCI is reclassified from the equity to the Statement of Profit and Loss. Interest earned while
holding FVTOCI debt instrument is reported as interest income using the EIR method.

Debt Instruments at FVTPL

FVTPL is a residual category for debt instruments. Any debt instrument, which does not meet the criteria for categorisation as
at amortised cost or as FVTOCI, is classified as at FVTPL. In addition, the Company may elect to designate a debt instrument,
which otherwise meets amortized cost or FVTOCI criteria, as at FVTPL. However, such election is allowed only if doing so
reduces or eliminates a measurement or recognition inconsistency (referred to as 'accounting mismatch'). Debt instruments
included within the FVTPL category are measured at fair value with all changes recognized in the Statement of Profit and Loss.
Equity Instruments

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

- Equity instruments measured at fair value through profit or loss (FVTPL); and

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

All equity investments are measured at fair value. The Company may make an irrevocable election to present subsequent
changes in the fair value in OCI. The Company makes such election on an instrument-by-instrument basis. The classification
is made on initial recognition and is irrevocable. Equity instruments included within the FVTPL category are measured at fair
value with all changes recognized in the Statement of Profit and Loss.

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

Investment in Subsidiaries and Joint Venture

Investment in subsidiaries and joint venture is carried at deemed cost in the separate financial statements, except in case of
investment in preference shares (debt instrument) of a subsidiary company which is carried in accordance with Ind AS 109
'Financial Instruments'.

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily
derecognised 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 (i) the
Company has transferred substantially all the risks and rewards of the asset, or (ii) the Company has neither transferred
nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

Impairment of Financial Assets

The Company assesses on a forward-looking basis the expected credit losses associated with its assets carried at amortised
cost and FVTOCI debt instruments. The impairment methodology applied depends on whether there has been a significant
increase in credit risk since initial recognition. Assessment of such credit risk is being made on case-to-case basis based on
available information.

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

The allowance for doubtful debts/ advances or impairment of assets is made on case-to-case basis by considering relevant
available information.

(b) Financial Liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, as loans and
borrowings, as payables, or as derivatives. All financial liabilities are recognised initially at fair value and in the case of loans
and borrowings and payables, net of directly attributable transaction costs. The Company's financial liabilities include trade
and other payables, loans and borrowings including derivative financial instruments.

Subsequent Measurement

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

Financial Liabilities at Fair Value through Profit or Loss

Financial liabilities at fair value through profit or loss (FVTPL) include financial liabilities held for trading and financial liabilities
designated upon initial recognition as at FVTPL. Financial liabilities are classified as held for trading if they are incurred for the
purpose of repurchasing in the near term. This category also includes derivative financial instruments entered by the Company
that are not designated as hedging instruments in hedge relationships as defined by Ind AS 109 'Financial instruments'.
Gains or losses on liabilities held for trading are recognised in the profit or loss.

Loans and Borrowings

Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured
at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption / repayment amount
is recognised in profit or loss over the period of the borrowings using the effective interest method. Fees paid on the
establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all
the facility will be drawn down. In this case, the fee is deferred until the draw down occurs. To the extent there is no evidence
that it is probable that some or all the facility will be drawn down, the fee is capitalised as a prepayment for liquidity services
and amortised over the period of the facility to which it relates.

Derecognition

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 financial liability on substantially different terms, or the terms of an existing
liability are substantially modified, such an exchange or modification is treated as de-recognition of the original liability and
the recognition of a new liability. The difference in the respective carrying amounts is recognised in the Statement of Profit
and Loss.

Offsetting of Financial Instruments

Financial assets and financial liabilities are offset, and the net amount is reported in the balance sheet if there is a currently
enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets
and settle the liabilities simultaneously.

(ii) Fair Value Hierarchy
Accounting Policy

The Company measures financial instruments, such as, derivatives at fair value at each reporting date
Fair value is the price 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 fair value measurement is based on the presumption that the transaction
to sell the asset or transfer the liability takes place either:

- In the principal market for the asset or liability, or

- In the absence of a principal market, in the most advantageous market for the asset or liability
The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the
asset or liability and assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant's ability to generate economic
benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset
in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to
measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair
value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

- Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

- Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly
or indirectly observable.

- Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines whether
transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is
significant to the fair value measurement as a whole) at the end of each reporting period.

The Company's management determines the policies and procedures for both recurring fair value measurement, such as
derivative instruments and unquoted financial assets measured at fair value, and for non-recurring fair value measurement,
such as assets held for disposal in discontinued operations.

External valuers are involved for valuation of significant assets, such as properties and unquoted financial assets, and
significant liabilities, such as contingent consideration, if any.

At each reporting date, the management analyses the movements in the values of assets and liabilities which are required to
be re-measured or re-assessed as per the Company's accounting policies. For this analysis, the management verifies the major
inputs applied in the latest valuation by comparing the information in the valuation computation to contracts and other relevant
documents.

The management, in conjunction with the Company's external valuers and / or with available information, also compares the change
in the fair value of each asset and liability with relevant available external sources to determine whether the change is reasonable.
For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the
nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.