2.15 Provisions and contingent liabilities
Provisions

Provisions are recognised when the Company has a present legal or constructive obligation 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
amount of the obligation can be reliably estimated. Provisions are not recognised for future operating losses.

Provisions (excluding retirement benefits) are measured at the management's best estimate of the expenditure required
to settle the present obligation at the Balance Sheet date. If the effect of the time value of money is material, provisions
are determined by discounting the expected future cash flows at a pre-tax rate that reflects 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 recognised as an interest expense.

Contingent liabilities

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but
probably will not require an outflow of resources embodying economic benefits or the amount of such obligation cannot
be measured reliably. When there is a possible obligation or a present obligation in respect of which likelihood of outflow
of resources embodying economic benefits is remote, no provision or disclosure is made.

Contingent Assets

A contingent asset is disclosed, where an inflow of economic benefits is probable.

2.16 Earnings per share

Basic earnings per share is calculated by dividing the profit or loss attributable to owners of the Company by the
weighted average number of equity shares outstanding during the financial year. The weighted average number of equity
shares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares, other
than the conversion of potential equity shares that have changed the number of equity shares outstanding, without a
corresponding change in resources.

Diluted earnings per share, adjusts the figures used in the determination of basic earnings per share to take into account
the after income tax effect of interest and other financing costs associated with dilutive potential equity shares, and the
weighted average number of additional equity shares that would have been outstanding assuming the conversion of all
dilutive potential equity shares.

2.17 Employee Share based payments

Equity-settled share-based payments to employees are measured at the fair value of the employee stock options at the
grant date.

The fair value determined at the grant date of the equity-settled share-based payments is amortised over the vesting
period, based on the Company's estimate of equity instruments that will eventually vest, with a corresponding increase
in equity.

At the end of each reporting period, the Company revises its estimate of the number of equity instruments expected
to vest. The impact of the revision of the original estimates, if any, is recognised in the Standalone Statement of Profit
and Loss such that the cumulative expense reflects the revised estimate, with a corresponding adjustment to the Share
Option Outstanding.

The Company measures the cost of equity-settled transactions with employees using Black-Scholes model to determine
the fair value of the liability incurred on the grant date. Estimating fair value for share-based payment transactions requires
determination of the most appropriate valuation model, which is dependent on the terms and conditions of the grant.

This estimate also requires determination of the most appropriate inputs to the valuation model including the expected
life of the share option, volatility and dividend yield and making assumptions about them.

The assumptions and models used for estimating fair value for share-based payment transactions are disclosed in Note
46.

2.18 Investment in Subsidiaries :

The Company's investment in its subsidiary is carried at cost net of accumulated impairment loss, if any. On disposal of
the Investment, the difference between the net disposal proceeds and the carrying amount is charged or credited to the
Standalone Statement of Profit and Loss.

2.19 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.

2.20 Rounding of amounts

All amounts disclosed in the standalone financial statements and notes have been rounded off to the nearest lakhs as
per the requirement of Schedule III, unless otherwise stated.

2(B) Critical estimates and judgments

The preparation of the Company's financial statements requires management to make judgments, estimates and assumptions
that affect the application of accounting policies, reported amounts of assets, liabilities, income and expenses, and
accompanying disclosures, and the disclosure of contingent liabilities. The estimates and associated assumptions are based
on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The
estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised
in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future
periods if the revision affects both current and future periods.

(i) Judgments

Information about judgments made in applying accounting policies that have the most significant effects on the amounts
recognised in the financial statements is included in the following notes:

Note 43 : Lease term: whether the Company is reasonably certain to exercise extension options.

(ii) Assumptions and estimation uncertainties

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that
have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next
financial year, are described below:

a) Mines Reclamation Provisions and related asset :

In determining the fair value of the Mines Restoration Obligation, assumptions and estimates are made in relation
to discount rates, the expected cost of mines restoration and the expected timing of those costs (Refer Note 2(A)
2.10 and 19).

b) Provisions & Contingent Liabilities

The Company exercises judgment in measuring and recognising provisions and the exposures to contingent liabilities
which is related to pending litigation or other outstanding claims. If a loss arising from these litigations and/or claims
is probable and can be reasonably estimated, the management records the amount of the estimated loss. If a loss
is reasonably possible, but not probable, the management discloses the nature of the significant contingency and, if
quantifiable, the possible loss that could result from the resolution of the matter. As additional information becomes
available, the management reassesses any potential liability related to these litigations and claims and may need
to revise the estimates. Such revisions or ultimate resolution of these matters could materially impact the results of
operations, cash flows or financial statements of the Company. (Refer Note 25 and 27)

c) Current tax expense and deferred tax

The calculation of the Company's tax charge necessarily involves a degree of estimation and judgement in respect
of certain items whose tax treatment cannot be finally determined until resolution has been reached with the
relevant tax authority or, as appropriate, through a formal legal process. The final resolution of some of these items
may give rise to material adjustment to taxable profits/losses (Refer note 7 and 26).

d) Useful lives of property, plant and equipment and intangibles

The Company reviews the estimated useful lives of property, plant and equipment and intabgibles at the end of each
reporting period or even earlier in case, circumstances change such that the recorded value of an asset may not
be recoverable. The estimate of useful life requires significant management judgment and requires assumptions
that can include: planned use of equipments, future volume trends, revenue and expense growth rates and annual
operating plans, and in addition, external factors such as changes in macroeconomic trends which are considered
in connection with the Company's long-term strategic planning (Refer Note 2(A) 2.09 and 2(A) 2.10).

e) Employee benefit plans

The Company's obligation on account of gratuity and compensated absences is determined based on actuarial
valuations. 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 and mortality rates.
Due to the complexities involved in the valuation and its long-term nature, these liabilities are highly sensitive to
changes in these assumptions. All assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate, the
management considers the interest rates of government bonds in currencies consistent with the currencies of the
post-employment benefit obligation.

The mortality rate is based on publicly available mortality tables. Those mortality tables tend to change only at
interval in response to demographic changes. Future salary increases are based on expected future inflation rates.
Further details about gratuity obligations are given in Note 32A(ii).

b) Rights, preferences and restrictions attached to equity shares

The Company has one class of equity shares having a par value of Rs. 10 per share. Each shareholder is eligible for one
vote per share held. In the event of liquidation the equity shareholders are eligible to receive the remaining assets of the
Company after distribution of all preferential amount, in proportion to their shareholding. The Dividend proposed by the
Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting except in the
case of interim dividend.

c) 2,65,212 equity shares (March 31, 2024 : 2,65,212) are kept in abeyance out of the Rights Issue entitlement pending
settlement of disputes.

d) 3,035 equity shares (March 31,2024 : 3,035) were issued in past but remain unsubscribed.

e) Shares held by holding company

Notes :

1) Capital Reserve : The Company had issued 6% non-cumulative compulsorily convertible preference shares to its then
parent company. Subsequently, the preference shareholders relinquished their right and resultant gain was recorded in
the capital reserve in the year of 2010. It also include subsidies received from State Government in the year 2002-03.

2) Capital Redemption Reserve : This was created on redemption of 14% redeemable cumulative preference shares in year
1996-97.

3) Securities Premium : Securities premium is used to record the excess of the amount received over the face value of the
shares. This can be utilised in accordance with the provision of the Companies Act, 2013.

4) Shares Options Outstanding : The Company has share option schemes under which options to subscribe for the
Company's shares have been granted to specific employees. The share-based payment reserve is used to recognise the
value of equity-settled share-based payments provided to certain class of employee as part of their remuneration. Refer
to Note 46 for further details of these plans.

5) General Reserve : The Company has transferred a portion of the net profit of the Company before declaring dividend to
general reserve. However, mandatory transfer to general reserve is not required under the Companies Act, 2013.

6) Surplus in statement of profit and loss represent surplus/accumulated earnings of the Company and are available for
distribution to shareholders.

a) A sum of ' 767.84 lakhs (March 31,2024 : ' 309.84 lakhs) on account of arrears, rent, service charges, way leave fees of
certain leasehold property, consequent to the Order of the Estate Officer of Mumbai Port Trust (MPT) dated February 28,
2007, has not been provided for as the said property was assigned in an earlier year to M/s Dinbandhu Estate Pvt. Ltd. (the
Assignee). The assignment was subject to the approval of MPT which was to be arranged by the Assignee. The Company
is contesting the said Order before the High Court.

b) In respect of retrospective revision (August 2012 to January 2018) of electricity duty the Company has received a demand
of ' 1,472 lakhs from Paschim Gujarat Vij Company Limited. The Company has filed a writ petition with the High Court.
Management believes that the probability of the above matter converting into a liability for the Company is remote basis
various precedents and applicable laws. As per the direction received from High Court, the Company has deposited ' 500
lakhs as fixed deposit with the High Court in July 2018.which has been disclosed as contingent liability above. Company
has recognised contingent liability of ' 49.65 Lakhs (March 31,2024 : ' 49.65 Lakhs) towards other civil matters.

c) It is not practicable for the Company to estimate the timing of cash outflows, if any, in respect of the above pending
resolution of the respective proceedings. The Company does not expect any reimbursements in respect of the above
contingent liabilities.

d) Competition Commissioner of India has visited the office on 22nd and 23rd of December, 2022 for the purpose of
conducting "Search" to find out certain information concerning the Competition Commission. Since, company have not
indulged in any concerning Competition Commission which is in violation of Competition Law and have not committed any
breach of Competition Laws, management do not apprehend any material impact on the standalone financial statements
of the company.

e) Company had on 06 April 2022 executed the Power Purchase Agreement ("PPA") with CGE Shree Digvijay Cement Green
Energy Private Limited ("CGE"), a Special Purpose Vehicle and part of Continuum Green Energy Ltd. ("Continuum")
for a contracted capacity of 8.10 MW hybrid wind and solar power ("Project") and Share Purchase Share Subscription
Agreement ("SPSA") executed on same date between the Company, CGE and Continuum. As per PPA, the Project was
scheduled to be fully commissioned from the Scheduled Commencement date of 06 January 2023. However, due to delay,
fundamental breaches and negligence on the part of Continuum, Project was partly commissioned on 19 June 2023 and
fully commissioned only on 24 January 2025.

As per PPA, SPV and Continuum were obligated to compensate the Company for delayed commissioning and supply of
electricity as per PPA. In this regard, As on 31 March 2025 the Company has claimed INR 2,116.56 lakhs by issuing debit
notes to CGE in terms of the PPA. The Company had sent legal notice to CGE during the year claiming its dues payable by
CGE under PPA. CGE has in counter wrongly preferred to issue notice to terminate the PPA and initiate Corporate Insolvency
proceedings against the Company before the Hon'ble National Company Law Tribunal, Ahmedabad Bench for withhelding
dues payable for power purchase by the Company. The matter is now listed on 29 April 2025 for preliminary hearing on
maintainability of the present petition. Further due to ongoing dispute for compensation for breach of agreement, the
Company has during the year invoked arbitration as per the PPA. Arbitrators have been appointed by both the parties, and
both the appointed arbitrators are in the process of appointing presiding arbitrator. Once the tribunal is fully constituted,
arbitration proceedings will commence. Considering the existing dispute arbitration proceedings and the facts, it is likely that
the insolvency petition filed by CGE will not be maintainable, subject to the discretion of the Hon'ble Tribunal.

f) The amount assessed as contingent liability do not include interest till the reporting date that could be claimed by counter
parties.

ii) Capital commitments :

Estimated amount of contracts remaining to be executed on capital account (net of advances) and not provided for is
' 3,884.40 lakhs (March 31, 2024: ' 982.11 lakhs).

ii) Defined-benefits plans

The Company provides for gratuity, a defined benefit retirement plan covering eligible employees. The Gratuity Plan provides
lumpsum payments to vested employees at retirement, death, incapacitation or termination of employment, as per the
Company's policy. Vesting occurs on completion of 5 continuous years of service as per Indian law. However, no vesting
condition applies in case of death. The gratuity payable to employees is based on the employee's tenure of service and last
drawn salary at the time of leaving the services of the Company. The gratuity plan is a funded plan and is administrated
through a trust namely Shree Digvijay Cement Co. Ltd. Employee Gratuity Fund.

The estimates of future salary increases, considered in actuarial valuation, takes into account, inflation, seniority,
promotions and other relevant factors, such as demand and supply in the employment market.

Mortality

The mortality rate is based on publicly available mortality tables. Those mortality tables tend to change only at interval
in response to demographic changes. Future salary increases are based on expected future inflation rates.

iii) Risk Exposure

The Gratuity scheme is Defined Benefit Plan that provides for a lumpsum payment made on exit either by way of
retirement, death, disability or voluntary withdrawal. The benefits are defined on the basis of final salary and the period
of service and paid as lump sum at exit. The risks commonly affecting the defined benefit plan are expected to be:

Demographic Risk: This is the risk of variability of results due to unsystematic nature of decrements that include
mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligation is not
straight forward and depends upon the combination of salary increase, discount rate and vesting criteria. It is important
not to overstate withdrawals because in the financial analysis the retirement benefit of a short career employee typically
costs less per year as compared to a long service employee.

Salary Inflation Risk : Higher than expected increases in salary will increase the defined benefit obligation.

Interest-rate risk: The defined benefit obligation calculated uses a discount rate based on government bonds. If bond
yields fall, the defined benefit obligation will tend to increase.

iv) Defined Benefit Liability and Employer Contributions

The Company considers that the contribution rates set at the last valuation date are sufficient to eliminate the deficit
over the agreed period and that regular contributions, which are based on service costs, will not increase significantly.

The weighted average duration of the defined benefit obligation is 3.15 years (March 31,2024 - 3.27 years). The expected
maturity analysis of undiscounted gratuity is as follows:

The estimates of future salary increases, considered in actuarial valuation, takes into account, inflation, seniority,
promotions and other relevant factors, such as demand and supply in the employment market.

Leave Availment Pattern:

Based on the data provided to us on the pattern of availment of leave by employees of the company in the past, it has been
assumed that 1.75% (1.75% in Previous Year) for Previllage Leave & 5.00% (5% in Previous Year) for Sick leave of leave
balance as at the valuation date and each subsequent year following the valuation date is availed by the employee. The
balance leave is assumed to be available for encashment on separation from the company

The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the
company towards Provident Fund and Gratuity. The Ministry of Labour and Employment had released draft rules for the
Code on Social Security, 2020 on November 13, 2020. The Company will assess the impact and its evaluation once the
subject rules are notified. The Company will give appropriate impact in its financial statements in the period in which, the
Code becomes effective and the related rules to determine the financial impact are published.