1.4. Significant Accounting Policies:

The principal accounting policies adopted in the preparation of the financial statements
are set out below. The policies have been consistently applied to all years presented,
unless otherwise stated. The presentation of financial statements requires the use of
certain accounting estimates. The areas where significant judgments and estimates
have been made in preparing the financial statements and their effects are disclosed.

A. Property Plants Equipment:

(a) Initial Measurement & Recognition

Property, plant and equipment are carried at cost less accumulated
depreciation and impairment losses, if any. The cost of an item of Property,
plant and equipment comprises its purchase price, including import duties
and other non-refundable taxes or levies and any directly attributable cost of
bringing the assets to its working condition for its intended use with any
trade discounts or rebates being deducted in arriving at purchase price.

Cost of the assets also includes interest on borrowings attributable to
acquisition, if any, of qualifying fixed assets incurred up to the date the asset
is ready for its intended use.

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

Cost of Property, plant and equipment not ready for intended use as on the
balance sheet date, is disclosed as capital work in progress. Advances
given towards acquisition of property, plant and equipment outstanding at
each balance sheet date are disclosed as Capital Advances under Other
non-current Assets.

Any gain or loss on disposal of an item of property plant and equipment is
recognised in statement of profit and loss.

(b) Subsequent expenditure

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 the Statement of Profit and Loss during the period in which
they are incurred.

(c) Depreciation:

Depreciation is provided based on estimated useful life prescribed under
Schedule II to the Companies Act, 2013 on Written Down Value Method.
Depreciation on assets added/disposed off during the year is provided on
pro-rata basis from the date of addition or up to the date of disposal, as
applicable.

The residual values, useful lives and method of depreciation of property,
plant and equipment is reviewed at each financial year end and adjusted
prospectively, if appropriate.

Accordingly, in the current Financial year 2024-25, the carrying value of the
PPE has reached the scrap value as decided by the Management
judgement (i.e.: 5%), no Depreciation is provided for the assets held by the
Company during the entire Financial year.

B. Inventories

Inventories are valued at the lower of cost and net realisable value. Cost is
computed on a weighted average basis. Cost of finished goods and work-in¬
progress include all costs of purchases, conversion costs and other costs incurred
in bringing the inventories to their present location and condition. The net
realisable value is the estimated selling price in the ordinary course of business
less the estimated costs of completion and estimated costs necessary to make
the sale.

C. Cash and Cash Equivalents

Cash and cash equivalents are short-term (three months or less from the date of
acquisition), highly liquid investments that are readily convertible into cash and
which are subject to an insignificant risk of changes in value.

D. Financial Instruments:

(A) Financial Assets

Recognition and measurement

Financial assets are recognised when the Company becomes a party to the
contractual provisions of the instrument. On initial recognition, a financial
asset is recognised at fair value, in case of Financial assets which are
recognised at fair value through profit and loss (FVTPL), its transaction cost
is recognised in the statement of profit and loss. In other cases, the
transaction costs are attributed to the acquisition value of the financial asset.

Financial assets are subsequently classified as measured at

• amortised cost

• Fair value through profit and loss (FVTPL)

• Fair value through other comprehensive income (FVOCI)

(a) Measured at amortised cost: Financial assets that are held within a
business model whose objective is to hold financial assets in order to
collect contractual cash flows that are solely payments of principal
and interest, are subsequently measured at amortised cost using the
effective interest rate ('EIR') method less impairment, if any. The
amortisation of EIR and loss arising from impairment, if any, is
recognised in the Statement of Profit and Loss.

(b) Measured at fair value through other comprehensive income:

Financial assets that are held within a business model whose
objective is achieved by both, selling financial assets and collecting
contractual cash flows that are solely payments of principal and
interest, are subsequently measured at fair value through other
comprehensive income. Fair value movements are recognized in the
other comprehensive income (OCI). Interest income measured using
the EIR method and impairment losses, if any are recognised in the
Statement of Profit and Loss. On de-recognition, cumulative gain or
loss previously recognised in OCI is reclassified from the equity to
'other income' in the Statement of Profit and Loss.

(c) Measured at fair value through profit or loss: A financial asset not
classified as either amortised cost or FVOCI, is classified as FVTPL.
Such financial assets are measured at fair value with all changes in
fair value, including interest income and dividend income if any,
recognised as 'other income' in the Statement of Profit and Loss.

Financial assets are not reclassified subsequent to their recognition,
except if and in the period the Company changes its business model
for managing financial assets.

Trade Receivables and Loans:

Trade receivables and loans are initially recognised at fair value.
Subsequently, these assets are held at amortised cost, using the
effective interest rate (EIR) method net of any expected credit losses.
The EIR is the rate that discounts estimated future cash income
through the expected life of financial instrument.

Equity Instruments:

An equity instrument is any contract that evidences a residual interest
in the assets of an entity after deducting all of its liabilities. Equity
instruments issued by the Company is recognised at the proceeds
received, net of direct issue costs.

All investments in equity instruments classified under financial assets
are subsequently measured at fair value. Equity instruments which
are held for trading are measured at FVTPL. For all other equity
instruments, the Company may, on initial recognition, irrevocably
elect to measure the same either at FVOCI or FVTPL. The Company
makes such election on an instrument-by-instrument basis. Fair value
changes on an equity instrument shall be recognised as 'other income'
in the Statement of Profit and Loss unless the Company has elected to
measure such instrument at FVOCI. Fair value changes excluding
dividends, on an equity instrument measured at FVOCI are
recognised in OCI. Amounts recognised in OCI are not subsequently
reclassified to the Statement of Profit and Loss. Dividend income on
the investments in equity instruments are recognised as 'other
income' in the Statement of Profit and Loss.

De-recognition

The Company derecognises a financial asset when the contractual
rights to the cash flows from the financial asset expire, or it transfers
the contractual rights to receive the cash flows from the asset.

Impairment of Financial Assets

Expected credit losses are recognized for all financial assets
subsequent to initial recognition other than financials assets in FVTPL
category. For financial assets other than trade receivables, as per Ind
AS 109, the Company recognises 12 month expected credit losses for
all originated or acquired financial assets if at the reporting date the
credit risk of the financial asset has not increased significantly since its
initial recognition. The expected credit losses are measured as lifetime
expected credit losses if the credit risk on financial asset increases
significantly since its initial recognition. The Company's trade
receivables do not contain significant financing component and loss
allowance on trade receivables is measured at an amount equal to life
time expected losses i.e. expected cash shortfall. The impairment
losses and reversals are recognised in Statement of Profit and Loss, if
any.

(B) Financial Liabilities:

Initial recognition and measurement

Financial liabilities are recognised when the Company becomes a party to
the contractual provisions of the instrument. Financial liabilities are initially
measured at the amortised cost unless at initial recognition, they are
classified as fair value through profit and loss. In case of trade payables,
they are initially recognised at fair value and subsequently, these liabilities
are held at amortised cost, using the effective interest method.

Subsequent measurement

Financial liabilities are subsequently measured at amortised cost using the
EIR method. Financial liabilities carried at fair value through profit or loss is
measured at fair value with all changes in fair value recognised in the
Statement of Profit and Loss.

De-recognition

A financial liability is derecognised when the obligation specified in the
contract is discharged, cancelled or expires.