2. Material accounting policies:
a. Basis of preparation and presentation
(i) Compliance with Ind AS
These standalone financial statements (hereinafter
referred to as the “financial statements”) comply in
all material aspects with Indian Accounting Standards
("IndAS") notified under Section 133 of the Companies
Act, 2013 (the Act) [Companies (Indian Accounting
Standards) Rules, 2015] (as amended from time to
time), presentation requirements of Division II of
Schedule III to the Act, as applicable to the financial
statements and other relevant provisions of the Act.
These policies have been consistently applied to all
the years presented, unless otherwise stated.
(ii) The historical cost convention
The financial statements have been prepared on
accrual basis under the historical cost convention,
except as disclosed in the accounting policies below.
(iii) Operating cycle
Based on the nature of products / activities of the
Company and the normal time between acquisition of
assets and their realization in cash or cash equivalents,
the Company has determined its operating cycle as 12
months for the purpose of classification of its assets
and liabilities as current and non-current.
(iv) Recent pronouncements
Standards/Specific amendments issued but not yet
effective as at March 31, 2026 -
Ind AS 1, Presentation of Financial Statements - For
accounting periods beginning on or after April 1,
2026, when an entity breaches any covenant of a
long-term loan arrangement on or before the end
of the reporting period with the effect that the
liability becomes payable on demand, it classifies the
liability as current, even if the lender agreed, after
the reporting period and before the approval of the
financial statements for issue, not to demand payment
as a consequence of the breach. An entity classifies
the liability as current because, at the end of the
reporting period, it does not have the right to defer
its settlement for at least 12 months after that date.
However, an entity classifies the liability as non¬
current if the lender agreed by the end of the reporting
period to provide a period of grace ending at least
12 months after the reporting period, within which
the entity can rectify the breach and during which
the lender cannot demand immediate repayment.
This amendment is to be applied retrospectively for
annual reporting periods beginning on or after April
1, 2026, in accordance with Ind AS 8, Accounting
Policies, Changes in accounting estimates and Errors."
(v) Functional and presentation currency
The financial statements of the Company are presented
in Indian Rupees (INR / H), which is the functional
currency of the Company and the presentation
currency for the financial statements. All amounts
disclosed in the financial statements have been
rounded to the two decimal of nearest millions (Mn) as
per the requirement of Schedule III of Companies Act,
2013, unless otherwise stated. Amounts mentioned
as "0.00" in the financial statements denote amounts
rounded off being less than H 0.005 Mn.
(vi) Accounting policy on earnings before finance
costs, depreciation and amortization, share of
net profit/(loss) of associate and joint ventures,
exceptional items and tax
As permitted by the Guidance Note on Division II -
Ind AS Schedule III to the Companies Act 2013, the
Company has elected to present earnings before
finance costs, depreciation and amortization, share
of net profit/(loss) of associate and Joint ventures,
exceptional items and tax as a separate line item
on the face of the Standalone Statement of Profit
and Loss. The Company measures earnings before
finance costs, depreciation and amortization, share
of net profit/(loss) of associate and Joint ventures,
exceptional items and tax on the basis of profit/ (loss)
from its operations. In its measurement, the Company
does not include depreciation and amortization
expense, finance costs, exceptional items gain/ (loss)
and income tax expenses.
>. Operating segment
Operating segment reflect the Company's management
structure and the way the financial information is regularly
reviewed by the Executive Chairman and Chief Executive
Officer (the Company's Chief Operating Decision Maker
(CODM)). The CODM considers the business from both
business and product perspective based on the dominant
source, nature of risks and returns and the internal
organisation and management structure. The Company's
CODM is identified to be the Executive Chairman and Chief
Executive Officer of the Company, who plans the allocation
of resources and assess the performance of the segments.
c. Foreign currency translation
In preparing the financial statements, transactions in
currencies other than the Company's functional currency are
recorded at the rates of exchange prevailing on the date of the
transaction. At the end of each reporting period, monetary
items denominated in foreign currencies are re-translated at
the rates prevailing at the end of the reporting period. Non¬
monetary items carried at fair value that are denominated in
foreign currencies are re-translated at the rates prevailing on
the date when the fair value was determined. Non-monetary
items that are measured in terms of historical cost in a
foreign currency are not translated.
For the purpose of presenting the financial statements,
the assets and liabilities are expressed in using exchange
rates prevailing at the end of the reporting period. Income
and expense items are translated at the average exchange
rates for the period. Exchange differences arising, if any,
are recognised in other comprehensive income and
accumulated in a separate component of equity.
d. Revenue from contracts with customer
The Company earns its revenue from sale of manufactured
goods and rendering of services. The Company has
determined that it is a principal in all its arrangements
with its customers.
The Company recognises revenue when control of goods
has transferred to customers and there are no unfulfilled
obligations that could affect the customer's acceptance
of the products. Control of goods is considered to
be transferred at a point-in-time when goods have
been dispatched or delivered, as per the terms agreed
with the customers.
Revenue from services is recognised in the period in which
services are rendered.
The Company does not have any contracts where the
period between the transfer of goods or services to the
customer and payment by the customer exceeds one year.
Accordingly, the Company does not adjust any of the
transaction prices for time value of money.
Revenue towards satisfaction of a performance obligation
is measured at the amount of transaction price allocated
to that performance obligation. As a practical expedient,
the Company has opted not to disclose the information in
respect of performance obligations that are part of contracts
that has an original expected duration of one year or less.
A contract asset is recognised when the Company gets the
right to consideration in exchange for goods or services that
it has transferred to the customers and the right is conditional
upon acts other than passage of time. When the payment
exceeds the value of goods supplied or services rendered, a
contract liability (advance from customers) is recognised.
e. Recognition of Other income - Interest income and
Dividend income
Interest income from a financial asset is recognised
when it is probable that the economic benefits will
flow to the Company and the amount of income can be
measured reliably.
Interest income from financial assets at amortized cost
is recognized in the statement of profit and loss using
effective interest method.
The 'effective interest rate' is the rate that exactly discounts
estimated future cash payments or receipts through the
expected life of the financial instrument to:
- the gross carrying amount of the financial asset; or
- the amortised cost of the financial liability.
In calculating interest income and expense, the effective
interest rate is applied to the gross carrying amount of
the asset (when the asset is not credit-impaired) or to the
amortised cost of the liability. However, for financial assets
that have become credit-impaired subsequent to initial
recognition, interest income is calculated by applying the
effective interest rate to the amortised cost of the financial
asset. If the asset is no longer credit-impaired, then the
calculation of interest income reverts to the gross basis.
Dividend income is recognised in profit or loss on the
date on which the Company's right to receive payment
is established.
f. Government grants
Government grants are recognised when there is reasonable
assurance that the Company will comply with the relevant
conditions and the grant will be received. Government
grants are recognised in the statement of profit and loss,
either on a systematic basis when the Company recognizes,
as expenses, the related costs that the grants are intended
to compensate or, immediately if the costs have already
been incurred. Government grants related to assets are
deferred and amortised over the useful life of the asset.
g. Income tax
The income tax expense or credit for the year is the tax
payable on the current year's taxable income based on
the applicable income tax rate applicable adjusted by
changes in deferred tax assets and liabilities attributable to
temporary differences and to unused tax losses.
The current income tax charge Is calculated on the basis
of the tax laws enacted or substantively enacted at the
end of the reporting period. Management periodically
evaluates positions taken in tax returns with respect to
situations in which applicable tax regulation is subject to
interpretation and considers whether it is probable that a
taxation authority will accept an uncertain tax treatment.
The Company measures its tax balances either based on
the most likely amount or the expected value, depending
on which method provides a better prediction of the
resolution of the uncertainty.
Deferred income tax is provided on temporary differences
arising between the tax bases of assets and liabilities and
their carrying amounts in the 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 reporting period and are expected to apply
when the related deferred income tax asset is realized or
the deferred income tax liability is settled.
Deferred tax assets are recognised for all deductible
temporary differences and unused tax losses only if it is
probable that future taxable amounts will be available to
utilise those temporary differences and losses. 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.
Deferred tax assets are reviewed at each reporting date.
Current and deferred tax is recognised in profit or loss,
except when they relate to items recognised in other
comprehensive income or directly in equity. In this case,
the tax is also recognised in other comprehensive income
or directly in equity, respectively.
h. Leases
At inception of a contract, the Company assesses whether
a contract is, or contains, a lease. A contract is, or contains,
a lease if the contract conveys the right to control the use
of an identified asset for a period of time in exchange
for consideration.
The Company as a Lessee
Leases are recognised as right of use asset and a
corresponding liability at the date at which the leased
asset is available for use by the Company. Contracts
may contain both lease and non-lease components. The
Company allocates the consideration in the contract to the
lease and non-lease components based on their relative
stand-alone prices.
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 payment that are based on an index or
a rate, initially measured using the index or rate as at
the commencement date
• Amounts expected to be payable by the Company
under residual value guarantees
• The exercise price of a purchase option if the Company
is reasonably certain to exercise that option.
• Payments of penalties for terminating the lease, if the
lease term reflects the company exercising that option.
The lease liability is measured at amortised cost using the
effective interest method. It is remeasured when there is
a change in future lease payments arising from a change
in an index or rate, if there is a change in the Company's
estimate of the amount expected to be payable under a
residual value guarantee, if the Company changes its
assessment of whether it will exercise a purchase, extension
or termination option or if there is a revised in-substance
fixed lease payment. When the lease liability is remeasured
in this way, a corresponding adjustment is made to the
carrying amount of the right-of-use asset, or is recorded
in profit or loss if the carrying amount of the right-of-use
asset has been reduced to zero.
Lease payments to be made under reasonably certain
extensions options are also included in the measurement
of the liability. The lease payments are discounted using
the interest rate implicit in the lease. If the rate cannot be
readily determined, as in the case of lease of buildings, the
Company's incremental borrowing rate is used, being the
rate that the Company would have to pay to borrow the
funds necessary to obtain the asset of similar value to the
right of use as set in a similar economic environment with
similar terms, security and conditions.
Lease payments are allocated between principal and
finance cost. The finance cost is charged to profit or loss
over the lease period so as to produce a constant periodic
rate of interest on the remaining balance of the liability
for each period.
Right of use assets are measured at cost comprising
of the following;
• The amount of the initial measurement of lease liability,
• Any lease payments made on or before the
commencement date less any lease incentives received,
• Any initial direct cost,
• Restoration cost
Right of use assets are generally depreciated over the
shorter of the asset's useful life and the lease term on a
straight-line basis. Where the Company is reasonably
certain to exercise the purchase option, the right of use
asset is depreciated over the underlying asset's useful life.
Payment associated with short-term lease 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.
i. Impairment of assets
At each balance sheet date, the Company reviews the
carrying value of its property, plant and equipment,
intangible assets and right of use assets to determine
whether there is any indication that the carrying value of
those assets may not be recoverable through continuing
use. If any such indication exists, the recoverable amount
of the asset is reviewed in order to determine the extent of
impairment loss, if any. Where the asset does not generate
cash flows that are independent from other assets, the
Company estimates the recoverable amount of the cash
generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs
to sell and value in use. 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 which the estimates of
future cash flows have not been adjusted. An impairment
loss is recognised in the statement of profit and loss
as and when the carrying value of an asset exceeds its
recoverable amount.
Where an impairment loss subsequently reverses, the
carrying value of the asset (or cash generating unit) is
increased to the revised estimate of its recoverable amount,
so that the increased carrying value does not exceed
the carrying value that would have been determined
had no impairment loss been recognised for the asset
(or cash generating unit) in prior years. A reversal of an
impairment loss is recognised in the statement of profit
and loss immediately.
j. Cash and cash equivalents
For the purpose of presentation in the statement of
cashflows, cash and cash equivalents includes cash on hand,
deposits held at call with financial institutions, other short
term, highly liquid investments with original maturities of
three months or less that are readily convertible to known
amounts of cash and which are subject to an insignificant
risk of changes in value, and bank overdrafts.
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