TruAlt Bioenergy Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

1 Corporate Information

TruAlt Bioenergy Limited (the ""Company"") is a public limited company incorporated and domiciled in India. The
address of its registered office is Survey No. 166, Kulali Cross, Jamkhandi Mudhol Road, Mudhol, Karnataka. The
Company is primarily engaged in the business of producing ethanol and other products derived from distillery
processes. The company is listed in Bombay Stock Exchange and National Stock Exchange on 03 October 2025. The
standalone financial statements were approved by the Board of Directors for issuance on May 22, 2026.

2 Material Accounting Policy Information

Material accounting policies adopted by the Company are as under:

2.1 Basis of Preparation of Financial Statements

(a) Statement of Compliance with Ind AS

These standalone financial statements have been prepared in accordance with Indian Accounting Standards (Ind
AS) notified under Section 133 of the Companies Act, 2013 (the "Act") read with the Companies (Indian Accounting
Standards) Rules, 2015 as amended from time to time.

(b) Basis of Preparation

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

i. Certain financial assets and liabilities are measured at fair value (refer accounting policy on financial
instruments)

ii. Employee defined benefit assets/(obligations)are recognised as the net total of the fair value of plan assets,
plus actuarial losses, less actuarial gains and the present value of the defined benefit obligations.

iii. Accounting for business combination as set out in note 35.

(c) Use of Estimates

In preparation of these standalone financial statements, management has made 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. Revision to accounting estimates are
recognised prospectively. Refer note 3 for details of the key estimates and judgments.

2.2 Summary of Material Accounting Policies

(a) Business Combination and Goodwill

Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as
the aggregate of the consideration transferred measured, at acquisition date fair value and the amount of any
non-controlling interest (NCI) in the acquiree. Acquisition-related costs are expensed as and when they are incurred.
At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognised at their
acquisition date fair values.

If the business combination is achieved in stages, any previously held equity interest is re-measured at its
acquisition date fair value and any resulting gain or loss is recognised in the Statement of Profit and Loss.

Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred and the
amount recognised for non-controlling interests, and any previous interest held, over the net identifiable assets
acquired and liabilities assumed. If the fair value of the net assets acquired is in excess of the aggregate
consideration transferred, the Company re-assesses whether it has correctly identified all of the assets acquired
and all of the liabilities assumed and reviews the procedures used to measure the amounts to be recognised at the
acquisition date. If the reassessment still results in an excess of the fair value of net assets acquired over the
aggregate consideration transferred, then the gain is recognised in other comprehensive income (OCI) and
accumulated in equity as Capital Reserve.

However, if there is no clear evidence of bargain purchase, the entity recognises the gain directly in equity as Capital
Reserve, without routing the same through OCI.

After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of
impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of
the Company''s cash-generating units that are expected to benefit from the combination, irrespective of whether
other assets or liabilities of the acquiree are assigned to those units.

A cash generating unit to which goodwill has been allocated is tested for impairment annually, or more frequently
when there is an indication that the unit may be impaired. If the recoverable amount of the cash generating unit is
less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill
allocated to the unit and then to the other assets of the unit pro rata based on the carrying amount of each asset in
the unit. Any impairment loss for goodwill is recognised in Statement of Profit and Loss. An impairment loss
recognised for goodwill is not reversed in subsequent years.

(b) Current versus Non Current Classification

The Company presents assets and liabilities in the balance sheet based on current/ noncurrent classification. An
asset is treated as current when it is:

i) Expected to be realised or intended to be sold or consumed in the normal operating cycle;

ii) Held primarily for the purpose of trading;

iii) Expected to be realised within twelve months from the reporting period; or

iv) Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least
twelve months after the reporting year.

All Other Assets are classified as non-current.

A liability is treated as current when:

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

- It is held primarily for the purpose of trading;

- It is due to be settled within twelve months from the reporting period; or

- There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting
period. The Company classifies all Other Liabilities as non-current. Deferred tax assets and liabilities are classified
as non-current assets and liabilities.

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and
cash equivalents. The Company has identified twelve months as its operating cycle.

(c) Fair value measurement

The Company measures financial instruments at fair value at each balance sheet 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 accessible to
the Company.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are
available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of
unobservable inputs. The Company''s management determines the policies and procedures for fair value
measurement such as derivative instruments.

"All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized
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; and

¦ Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement
is unobservable.

(d ) 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. Revenue contracts are on a principal to principal basis and the Company is primarily
responsible for fulfilling the identified performance obligation.

Revenue from sale of goods is recognised at the point in time when control of the goods is transferred to the
customer, on delivery of the goods or Ex- Works, basis the terms of the contract. Payment for the sale is made as
per the credit terms in the agreements with the customers. The Company considers whether there are other
promises in the contract that are separate performance obligations to which a portion of the transaction price
needs to be allocated. In determining the transaction price for the sale of goods and services, the Company
considers the effects of variable consideration, the existence of significant financing components, non-cash
consideration, and consideration payable to the customer (if any).

Bill and hold sales are recognised when all the following criteria are met:

¦ the reason for the bill and hold sales is substantive

¦ the product is identified separately as belonging to the customer

¦ the product is currently ready for physical transfer to the customer

¦ the company does not have ability to use the product or to direct it to another customer.

Contract balances - Trade receivables

A receivable represents the Company''s right to an amount of consideration that is unconditional (i.e., only the
passage of time is required before payment of the consideration is due).

(e) Government grant

Government grants are recognised where there is reasonable assurance that the grant will be received and all
attached conditions will be complied with. When the grant relates to an expense item, it is recognised as income on
a systematic basis over the periods that the related costs, for which it is intended to compensate, are expensed.
When the grant relates to an asset, it is recognised as income in equal amounts over the expected useful life of the
related asset.

When the assistance is provided by the government in the form of reimbursement of interest paid on term loans,
the effect of this interest subvention is regarded as government grant. The benefit received is accounted as other
income in the statement of profit and loss.

(f) Taxes

Tax expense for the period, comprising current tax and deferred tax, are included in the determination of the net
profit or loss for the period.

Current income tax

Current tax assets and liabilities are measured at the amount expected to be recovered or paid to the taxation
authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively
enacted, at the year end date. Current tax assets and tax liabilities are offset where the entity has a legally
enforceable right to offset and intends either to settle on a net basis, or to realize the asset and settle the liability
simultaneously.

Current income tax relating to items recognised outside the statement of profit and 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. Management periodically evaluates positions taken in the tax returns with respect to
situations in which applicable tax regulations are subject to interpretation and establishes provisions where
appropriate.

Deferred tax

Deferred income tax is provided in full, using the balance sheet approach, on temporary differences arising between
the tax bases of assets and liabilities and their carrying amounts in financial statements.

Deferred income tax is also not accounted for, if it arises from initial recognition of an asset or liability in a
transaction other than a business combination that at the time of the transaction affects neither accounting profit
nor taxable profit (tax loss). Deferred income tax is determined using tax rates (and laws) that have been enacted
or substantially enacted by the end of the year and are expected to apply when the related deferred income tax
asset is realised or the deferred income tax liability is settled.

Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits
and any unused tax losses only if it is probable that future taxable amounts will be available to utilise those
temporary differences and losses.

Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax
regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts
expected to be paid to the tax authorities.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and
liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax
liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net
basis, or to realise the asset and settle the liability simultaneously.

Current and deferred tax is recognised in Statement of Profit and Loss, except to the extent that it relates to items
recognised in OCI or directly in equity. In this case, the tax is also recognised in OCI or directly in equity,
respectively.

(g) Property, plant and equipment and Capital work-in progress

Property, plant and equipment are stated at historical cost less depreciation and accumulated impairment.
Historical cost includes expenditure that is directly attributable to the acquisition of the items. For this purpose,
cost includes deemed cost on the date of transition and acquisition price, including nonrecoverable duties and
taxes, and any directly attributable costs of bringing an asset to the location and condition of its intended use. In
addition, interest on borrowings used to finance the construction of qualifying assets is capitalized as part of the
asset''s cost until such time that the asset is ready for its intended use.

Subsequent costs are included in the asset''s carrying amount or recognised as a separate asset, as appropriate,
only when it is probable that future economic benefits associated with the item will flow to the Company and the
cost of the item can be measured reliably. All other repairs and maintenance are charged to Statement of Profit and
Loss during the year in which they are incurred.

When parts of an item of property, plant and equipment have different useful lives, they are accounted for as
separate items (major components) of property, plant and equipment.

Advances paid towards the acquisition of property, plant and equipment outstanding at each balance sheet date are
classified as capital advances under Other Non-current Assets and the cost of assets not put to use before such
date are disclosed under ''Capital work-in-progress''.

Depreciation on addition to property plant and equipment is provided on a pro-rata basis from the date of
acquisition. Depreciation on sale/deduction from property plant and equipment is provided up to the date preceding
the date of sale, deduction as the case may be. Gains and losses on disposals are determined by comparing the
sale proceeds with the carrying amount. These are included in the Statement of Profit and Loss under ''Other
Income''.

Depreciation methods, useful lives and residual values are reviewed periodically at each financial year end and are
adjusted prospectively, as appropriate.

(h) Other Intangible Assets

Intangible assets are stated at acquisition cost, net of accumulated amortisation.

Intangible assets acquired in a business combination and recognised separately from goodwill are initially
recognised at their fair value at the acquisition date (which is regarded as their cost). Subsequent to initial
recognition, intangible assets 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.

The Company amortises intangible assets over their estimated useful lives using the straight line method. The
estimated useful lives of intangible assets are as follows:

Intangible assets Years

Customer relationship 10 years

Intangible assets with finite lives are assessed for impairment whenever there is an indication that the intangible
asset may be impaired. The amortisation period and the amortisation method for an intangible asset with a finite
useful life are reviewed at least at each financial year end.

(i) 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 recognises lease liabilities to make lease payments and right-of-use
assets representing the right to use the underlying assets.

i) Right-of-use assets

The Company recognises 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 remeasurement of lease liabilities. The cost of right-of-use assets includes
the amount of lease liabilities recognised, 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 shorter of the lease term and the estimated useful lives of the assets. The right-of-use assets are
also subject to impairment.

ii) Lease liabilities

At the commencement date of the lease, the Company recognises lease liabilities measured at the present value of
lease payments to be made over the lease term. The lease payments include fixed payments (including in
substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index
or a rate, and amounts expected to be paid under residual value guarantees if any. The lease payments also include
the exercise price of a purchase option reasonably certain to be exercised by the Company and payments of
penalties for terminating the lease, if the lease term reflects the Company exercising the option to terminate.
Variable lease payments that do not depend on an index or a rate are recognised 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

(e.g., changes to future payments resulting from a change in an index or rate used to determine such lease
payments) or a change in the assessment of an option to purchase the underlying asset."

iii) Short-term leases and leases of low-value assets

The Company applies the short-term lease recognition exemption to its short-term leases of machinery and
equipment (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 space
that are considered to be low value. Lease payments on short-term leases and leases of low-value assets are
recognised as expense on a straight-line basis over the lease term.

iv) Company as a lessor

Where the Company is the lessor, the treatment of leasing transactions is mainly determined by whether the lease
is considered to be an operating or finance lease. In making this assessment, management looks at the substance
of lease, as well as the legal form, and makes a judgement about whether substantially all of the risks and rewards
of ownership are transferred. Arrangements which do not take legal form of a lease but that nevertheless convey
the right to use an asset are also covered by such assessments. The management''s estimates and assessments
were based in particular on assumptions regarding the development of the economy as a whole and the
development of the basic legal parameters.

(j) Borrowing Costs

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily
takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the
asset. All other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest
and other costs that an entity incurs in connection with the borrowing of funds and also includes exchange
differences to the extent regarded as an adjustment to the borrowing costs.

(k) Inventories

Inventories are valued at the lower of cost and net realisable value.

Costs incurred in bringing each product to its present location and condition are accounted for as follows:

- Raw materials and stores and spare parts: cost includes cost of purchase and other costs incurred in bringing
the inventories to their present location and condition. Cost is determined on a weighted average basis.

- Finished goods and work-in-progress: cost is determined on the weighted average basis and comprises direct
material, cost of conversion and other costs incurred in bringing these inventories to their present location and
condition.

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

(l) Impairment of non-financial assets

The Company assesses at each period end whether there is any objective evidence that a non financial asset or a
group of non financial assets is impaired. If any such indication exists, the Company estimates the asset''s
recoverable amount and the amount of impairment loss.

An impairment loss is calculated as the difference between an asset''s carrying amount and recoverable amount.
Losses are recognised in the Statement of Profit and Loss and are reflected in an allowance account. When the
Company considers that there are no realistic prospects of recovery of the asset, the relevant amounts are written
off. If the amount of impairment loss subsequently decreases and the decrease can be related objectively to an
event occurring after the impairment was recognised, then the previously recognised impairment loss is reversed
through the Statement of Profit and Loss.

The recoverable amount of an asset or cash-generating unit (as defined below) is the greater of its value in use and
its fair value less costs of disposal. In assessing value in use, the estimated future cash flows are discounted to
their present value using a pre-tax discount rate that reflects current market assessments of the time value of
money and the risks specific to the asset. For the purpose of impairment testing, assets are grouped together into
the smallest group of assets that generates cash in flows from continuing use that are largely independent of the
cash inflows of other assets or groups of assets (the "cash-generating unit").