2A Material accounting policies:

2.1 B asis of preparation of Standalone Financial
Statements ("financial statements”):

a) Statement of compliance

T he financial statements of the Company as at
and for the year ended 31 March 2026 have been
prepared in accordance with Indian Accounting
standards ('Ind AS') notified by the Ministry of
Corporate Affairs in consultation with the National
Advisory Committee on Accounting Standards,
under section 133 of the Companies Act, 2013
(‘Act') read with Rule 3 of the Companies (Indian
Accounting Standards) Rules, 2015 (as amended)
and the relevant provisions of the Act. In addition,
the guidance notes/announcements issued by the
Institute of Chartered Accountants of India (ICAI)
are also applied except where compliance with
other statutory promulgations require a different
treatment.

T he financial statements are authorised for issue
by the Board of Directors of the Company at its
meeting held on 28 May 2026.

b) Basis of preparation and presentation

T he preparation of financial statements in
accordance with Ind AS requires the use of certain
critical accounting estimates. It also requires
management to exercise its judgement in the
process of applying the Company's accounting
policies. The areas involving a higher degree
of judgement or complexity, or areas where
assumptions and estimates are significant to the
financial statements are disclosed in Note 2B.
Actual results could differ from those 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.

T he Company presents assets and liabilities in
Balance Sheet based on current/non-current
classification.

An asset is classified as current when it is:

a) E xpected to be realised or intended to be sold
or consumed in normal operating cycle*

b) Held primarily for the purpose of trading,

c) E xpected to be realised within twelve months
after the reporting period, or

d) T ash or cash equivalent unless restricted
from being exchanged or used to settle a
liability for at least twelve months after the
reporting period.

* The operating cycle is the time between the
acquisition of assets for processing and
their realisation in cash or cash equivalents.
The Company's normal operating cycle
is twelve months

All other assets are classified as non-current.

A liability is classified as current when:

a) i t is expected to be settled in normal operating
cycle,

b) T t is held primarily for the purpose of trading,

c) T t is due to be settled within twelve months
after the reporting period

d) t here is no unconditional right to defer the
settlement of the liability for at least twelve
months after the reporting period.

T he Company classifies all other liabilities as non¬
current.

T eferred tax assets and liabilities are classified as
non-current assets and liabilities.

c) Basis of measurement

T hese financial statements are prepared under
historical cost convention except for provision for
defined benefit obligations and certain financial
instruments measured at fair value at the end
of each reporting period as explained in the
accounting policies below.

F air value measurements are categorised as
below based on the degree to which the inputs
to the fair value measurements are observable
and the significance of the inputs to the fair value
measurement in its entirety:

• Level 1 inputs are quoted prices (unadjusted) in
active markets for identical assets or liabilities
that the Company can access at measurement
date;

• Level 2 inputs are inputs, other than quoted
prices included in level 1, that are observable
for the assets or liabilities, either directly or
indirectly; and

• Level 3 inputs are unobservable inputs for the
valuation of assets or liabilities.

A bove levels of fair value hierarchy are applied
consistently and generally, there are no transfers
between the levels of the fair value hierarchy
unless the circumstances change warranting such
transfer.

d) Functional and Presentation Currency

A hese financial statements are presented in
Indian rupees, which is the functional currency
of the Company and the currency of the primary
economic environment in which the Company
operates. The financial statements are prepared
in Indian Rupees in Million, rounded off to the
nearest one decimal except for share data and
per share data, unless otherwise stated.

e) Going Concern

A he directors have, at the time of approving the
standalone financial statements, a reasonable
expectation that the Company has adequate
resources to continue in operational existence for
the foreseeable future. Thus, the Company has
applied the going concern basis of accounting in
preparing the standalone financial statements.

2.2 Property, plant and equipment ("PPE"):

i) Recognition and Measurement

a) A he cost of an item of property, plant and

equipment shall be recognised as an asset if,
and only if 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. Items of PPE are carried
at cost less accumulated depreciation and
impairment losses, if any. The cost of an
item of PPE 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 and
any trade discount and rebates are deducted
in arriving at purchase price. Cost of the
assets also includes interest on borrowings
attributable to acquisition of qualifying fixed
assets up to the date the asset is ready for its
intended use incurred up to that date.

b) I f significant parts of an item of PPE have
different useful lives, then they are accounted
for as separate items (major components) of
PPE.

c) Any gain or loss on disposal of an item of PPE
is recognised in statement of profit and loss.

d) A ost of Items 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 Advance under Other
non current assets.

e) A he cost property, plant and equipment at 01
April 2016, the Company's date of transition
to Ind AS, was determined with reference
to its carrying value recognised as per the
previous GAAP (deemed cost), as at the date
of transition to Ind AS.

f) A PE is derecognised upon disposal or when no
future economic benefits are expected from
its use or disposal. Any gain or loss arising on
derecognition is recognised in the Statement
of Profit and Loss in the same period.

ii) Subsequent expenditure

A ubsequent expenditure relating to PPE is
capitalised only if such expenditure results in
an increase in the future benefits from such
asset beyond its previously assessed standard
of performance and the cost of the item can be
measured reliably.

iii) Depreciation

A epreciation is the systematic allocation of the
depreciable amount of PPE over its useful life and
is provided on a straight-line basis over the useful
lives as prescribed under Schedule II to the Act or
as per technical assessment. The residual values,
useful lives and method of depreciation of PPE is
reviewed at each financial year end and adjusted
prospectively, if appropriate.

associated with the item will flow to the Company
and the cost of the item can be measured reliably.
All other expenditure, including expenditure
on internally generated goodwill and brands,
is recognised in statement of profit and loss as
incurred.

iii) Amortisation

Amortisation is calculated to write off the cost
of intangible assets less their estimated residual
values using the straight-line method over their
estimated useful lives, and is generally recognised
in statement of profit and loss. The amortisation
period and the amortisation method for finite-life
intangible assets is reviewed at each financial year
end and adjusted prospectively, if appropriate.

A he estimated useful lives of intangible assets are
as follows:

The cost of Intangible assets at 01 April 2016,
the Company's date of transition to Ind AS, was
determined with reference to its carrying value
recognised as per the previous GAAP (deemed
cost), as at the date of transition to Ind AS.

ii) Subsequent expenditure

D ubsequent expenditure is capitalised only when
it it is probable that future economic benefits

iv) In-Process Research and Development
assets (“IPR&D”) or Intangible assets under
development

A cquired research and development intangible
assets that are under development are recognised
as In-Process Research and Development assets
(“IPR&D”) or Intangible assets under development.
IPR&D assets are not amortised but evaluated for
potential impairment on an annual basis or when
there are indications that the carrying value may
not be recoverable. Subsequent expenditure on
an In-Process Research or Development project
acquired separately or in a business combination
and recognised as an intangible asset is:

• recognised as an expense when incurred, if it
is research expenditure;

• capitalised if the cost can be reliably measured,
the product or process is technically and
commercially feasible and the Company
has sufficient resources to complete the
development and to use and sell the asset.

2.4 Impairment of assets:

A he Company assesses at each balance sheet date
whether there is any indication that an asset may be
impaired. For the purposes of assessing impairment,
the smallest identifiable group of assets that generates
cash inflows from continuing use that are largely
independent of the cash inflows from other assets or
group of assets, is considered as a cash generating unit.

If any such indication exists, the Company estimates
the recoverable amount of the asset. The recoverable
amount is the higher of an asset's fair value less costs
of disposal 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. If such recoverable amount of the asset or
the recoverable amount of the cash generating unit to
which the asset belongs is less than its carrying amount,
the carrying amount is reduced to its recoverable
amount. The reduction is treated as an impairment loss
and is recognised in the Statement of Profit and Loss.
If at the balance sheet date there is an indication that a
previously assessed impairment loss no longer exists
or may have decreased, the recoverable amount is
reassessed and the asset is reflected at the recoverable
amount. Where an impairment loss subsequently
reverses, the carrying amount of the asset (or cash¬
generating unit) is increased to the revised estimate
of its recoverable amount, but so that the increased
carrying amount does not exceed the carrying amount
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 immediately in profit or loss to the extent
that it eliminates the impairment loss which has been
recognised for the asset in prior years. Any increase
in excess of this amount is treated as a revaluation
increase.

2.5 Leases and Right of use ('ROU'):

The Company as a lessee

T he Company assesses whether a contract contains
a lease, at inception of a contract. 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. To assess whether
a contract conveys the right to control the use of an
identified asset, the Company assesses whether:

(i) the contract involves the use of an identified asset;

(ii) T he Company has substantially all of the economic
benefits from use of the asset through the period
of the lease and

(iii) t he Company has the right to direct the use of the
asset.

Tt the date of commencement of the lease, the
Company recognizes a right-of-use asset (“ROU”) and a

corresponding lease liability for all lease arrangements
in which it is a lessee, except for leases with a term
of twelve months or less (short-term leases) and
low value leases. For these short-term and low value
leases, the Company recognizes the lease payments as
an operating expense on a straight-line basis over the
term of the lease.

T he Company leases warehouse and factory facilities.
Certain lease arrangements include the options to
extend the lease before the end of the lease term, but
the renewal aspect has not been added to the lease
term since the option to renew the lease lies with both
the lessor and the lessee.

T he right-of-use assets are initially recognised at cost,
which comprises the initial amount of the lease liability
adjusted for any lease payments made at or prior to the
commencement date of the lease plus any initial direct
costs less any lease incentives. They are subsequently
measured at cost less accumulated depreciation and
impairment losses.

T ight-of-use assets are depreciated from the
commencement date on a straight-line basis over
the shorter of the lease term and useful life of the
underlying asset. Right of use assets are evaluated
for recoverability whenever events or changes in
circumstances indicate that their carrying amounts
may not be recoverable.

T he lease liability is initially measured at amortised cost
at the present value of the future lease payments. The
lease payments are discounted using discount rates
generally based on the incremental borrowing rate
specific to the lease being evaluated or for a portfolio of
leases with similar characteristics. Carrying amount of
lease liability is increased by interest on lease liability
and reduced by lease payments made. Lease liabilities
are remeasured with a corresponding adjustment to
the related right of use asset if the Company changes
its assessment if whether it will exercise an extension
or a termination option. Lease liability and ROU asset
have been separately presented in the Balance Sheet
and lease payments have been classified as financing
cash flows.

T ease payments associated with following leases are
recognised as expense on straight-line basis:

(i) Low value leases; and

(ii) Leases which are short-term.

2.6 Financial instruments:

Recognition initial measurement

Trade receivables are initially recognised when they
originate. All other financial assets and financial
liabilities are initially recognised when the Company
becomes a party to the contractual provisions of the
instrument.

T financial asset or financial liability is initially
measured at fair value. Transaction costs that are
directly attributable to the acquisition or issue of
financial assets and financial liabilities (other than
financial assets and financial liabilities at fair value
through profit or loss) are added to or deducted from the
fair value of the financial assets or financial liabilities,
as appropriate, on initial recognition. However, trade
receivables that do not contain a significant financing
component are measured at transaction price.

Classification and subsequent measurement
Financial Assets

T n initial recognition, a financial asset is classified as
measured at

• amortised cost or

• FVTPL

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

T financial asset is measured at amortised cost if
it meets both of the following conditions and is not
designated as at FVTPL:

• the asset is held within a business model whose
objective is to hold assets to collect contractual cash
flows; and

• the contractual terms of the financial asset give
rise on specified dates to cash flows that are solely
payments of principal and interest on the principal
amount outstanding.

Financial assets: Business model assessment

T he Company makes an assessment of the objective
of the business model in which a financial asset is held
at a portfolio level because this best reflects the way
the business is managed and information is provided
to management. The information considered includes:

• the stated policies and objectives for the portfolio
and the operation of those policies in practice. These
include whether management's strategy focuses on

earning contractual interest income, maintaining
a particular interest rate profile, matching the
duration of the financial assets to the duration of
any related liabilities or expected cash outflows or
realising cash flows through the sale of the assets;

• how the performance of the portfolio is evaluated
and reported to the Company's management;

• the risks that affect the performance of the business
model (and the financial assets held within that
business model) and how those risks are managed;

• how managers of the business are compensated
-e.g. whether compensation is based on the fair
value of the assets managed or the contractual cash
flows collected; and

• the frequency, volume and timing of sales of financial
assets in prior periods, the reasons for such sales
and expectations about future sales activity.

Transfers of financial assets to third parties in
transactions that do not qualify for derecognition are
not considered sales for this purpose, consistent with
the Company's continuing recognition of the assets.

T inancial assets that are held for trading or are
managed and whose performance is evaluated on a
fair value basis are measured at FVTPL.

T he Company recognises transfers between levels
of the fair value hierarchy at the end of the reporting
period during which the change has occurred.

F inancial assets: Assessment whether contractual
cash flows are solely payments of principal and
interest

T or the purposes of this assessment, 'principal' is
defined as the fair value of the financial asset on initial
recognition. 'Interest' is defined as consideration for the
time value of money and for the credit risk associated
with the principal amount outstanding during a
particular period of time and for other basic lending
risks and costs (e.g. liquidity risk and administrative
costs), as well as a profit margin.

I n assessing whether the contractual cash flows are
solely payments of principal and interest, the Company
considers the contractual terms of the instrument. This
includes assessing whether the financial asset contains
a contractual term that could change the timing or
amount of contractual cash flows that it would not
meet this condition. In making this assessment, the
Company considers:

• contingent events that would change the amount or
timing of cash flows;

• terms that may adjust the contractual coupon rate,
including variable interest rate features;

• prepayment and extension features; and

• terms that limit the Company's claim to cash flows
from specified assets (e.g. non-recourse features).

A prepayment feature is consistent with the solely
payments of principal and interest criterion if the
prepayment amount substantially represents unpaid
amounts of principal and interest on the principal
amount outstanding, which may include reasonable
additional compensation for early termination
of the contract. Additionally, for a financial asset
acquired at a significant discount or premium to its
contractual par amount, a feature that permits or
requires prepayment at an amount that substantially
represents the contractual par amount plus accrued
(but unpaid) contractual interest (which may also
include reasonable additional compensation for early
termination) is treated as consistent with this criterion if
the fair value of the prepayment feature is insignificant
at initial recognition.

F inancial liabilities: Classification, subsequent
measurement and gains and losses

A inancial liabilities are classified as measured at
amortised cost or FVTPL. A financial liability is classified
as at FVTPL if it is classified as held-for-trading, or
it is a derivative or it is designated as such on initial
recognition. Financial liabilities at FVTPL are measured
at fair value and net gains and losses including any
interest expense, are recognised in profit or loss.
Other financial liabilities are subsequently measured
at amortised cost using the effective interest method.
Interest expense and foreign exchange gains and losses
are recognised in profit or loss. Any gains or loss on
derecognition is also recognised in the statement of
profit and loss.

Derecognition
Financial assets

A he Company derecognises a financial asset when the
contractual rights to the cash flows from the financial
asset expire, or it transfers the rights to receive the
contractual cash flows in a transaction in which
substantially all of the risks and rewards of ownership
of the financial asset are transferred or in which the
Company neither transfers not retains substantially
all of the risks and rewards of ownership but does not
retain control of the financial asset.

I f the Company enters into transactions whereby it
transfers assets recognised on its balance sheet, but
retains either all or substantially all of the risks and
rewards of the transferred assets, the transferred
assets are not derecognised. On derecognition of a
financial asset in its entirety, the difference between
the carrying amount at the date of derecognition and
the consideration received is recognised in profit or
loss.

Financial liabilities

A he Company derecognises a financial liability when its
contractual obligations are discharged or cancelled, or
expired.

A he Company also derecognises a financial liability
when its terms are modified and the cash flow under the
modified terms are substantially different. In this case,
a new financial liability based on the modified terms is
recognised at fair value. The difference between the
carrying amount of the financial liability extinguished
and the new financial liability with modified terms is
recognised in the statement of profit and loss.

Offsetting

A inancial assets and financial liabilities are offset and
the net amount presented in the balance sheet when,
and only when, the Company currently has a legally
enforceable right to set off the amounts and it intends
either to settle them on a net basis or to realise the asset
and settle the liability simultaneously.

2.7 Equity instruments

A quity instruments issued by the Company are
classified according to the substance of the contractual
arrangements entered into and the definitions of an
equity instrument. An equity instrument is any contract
that evidences a residual interest in the assets of
the Company after deducting all of its liabilities and
includes no obligation to deliver cash or other financial
assets.

2.8 Inventories:

a) N aw Materials and Packing Materials are valued at
cost, if the finished products in which they will be
incorporated are expected to be sold at or above
cost. If the decline in selling price of finished goods
indicate that the cost of finished goods exceeds net
realisable value, the materials are written down to
net realisable value; cost is calculated on moving
weighted average basis.

b) R inished Goods and Work-in-Progress are valued
at lower of cost (on Moving weighted average basis)
and net realisable value. In respect of finished
goods, cost includes materials, appropriate share
of utilities and other overheads. Trading Goods
are valued at lower of cost (on Moving weighted
average basis) and net realisable value. Cost
of inventories comprises all costs of purchase,
costs of conversion and other costs incurred in
bringing the inventories to their present location
and condition.

c) N et realisable value is the estimated selling
price in the ordinary course of business, less the
estimated costs of completion and the estimated
costs necessary to make the sale on item-by-item
basis.

2.9 Revenue Recognition and measurement:

Revenue from operations

a) Revenue from sale of goods is recognised when
control of the goods is transferred to the customer
at an amount that reflects the consideration
to which the Company expects to be entitled in
exchange for those goods at a point in time. The
Company assesses promises in the contract that
are separate performance obligations to which a
portion of transaction price is allocated.

Revenue towards satisfaction of a performance
obligation is measured at the amount of transaction
price (net of variable consideration) allocated
to that performance obligation. The transaction
price of goods sold and services rendered is net
of variable consideration on account of various
discounts and schemes offered by the Company
as part of the contract. Accumulated experience
is used to estimate the provision for discounts,
probable saleable and non-saleable return of
goods from the customers. Revenue is only
recognised to the extent that it is highly probable
a significant reversal will not occur.

b) R xport benefits available under prevalent schemes
are accrued in the year in which the goods are

exported and no significant uncertainty exist
regarding its ultimate collection.

c) N oyalty revenue is recognised on an accrual
basis in accordance with the substance of the
relevant agreement (provided that it is probable
that economic benefits will flow to the Company
and the amount of revenue can be measured
reliably). Royalty arrangements that are based
on production, sales and other measures are
recognised by reference to the underlying
arrangement.

Other income

a) I nterest income is recognised using the effective
interest rate (EIR) method.

b) N evenue (including in respect of insurance or other
claims, etc.) is recognised when it is reasonable to
expect that the ultimate collection will be made.

c) I ncome from services rendered is recognised
over a period of time based on agreements/
arrangements with the customers as the service is
performed and there are no unfulfilled obligations.

d) N ividend income is accounted in the period in
which the right to receive the same is established.

Refund liabilities:

A refund liability is the obligation to refund part or
all of the consideration received (or receivable) from
the customer. The Company has therefore recognised
refund liabilities in respect of customer's right to return.
The liability is measured at the amount the Company
ultimately expects it will have to return to the customer.
The Company updates its estimate of refund liabilities
(and the corresponding change in the transaction
price) at the end of each reporting period.

A he Company has presented its refund liabilities as
required under Ind AS 115 in the financial statements.

2.10 Foreign currency transactions and
translations

Aransactions in foreign currencies are translated into
the functional currency of the Company by applying the
appropriate fortnightly rate which best approximates
the actual rate of the transaction.

M onetary assets and liabilities denominated in foreign
currencies are translated into the functional currency
at the exchange rate at the reporting date. Non¬
monetary assets and liabilities that are measured at
fair value in a foreign currency are translated into the
functional currency at the exchange rate when the fair
value was determined. Foreign currency differences
are generally recognised in the statement of profit
and loss. Non-monetary assets and liabilities that are
measured based on historical cost in a foreign currency
are translated at the exchange rate at the date of the
transaction.

M inistry of Corporate Affairs (MCA) had notified
amendments to the existing standards Ind AS 21 : The
Effects of Changes in Foreign Exchange rates applicable
to the Company w.e.f. 01 April 2025, to address concerns
about currency exchangeability and provide guidance
on estimating spot exchange rates when a currency is
not exchangeable. The adoption of this amendment did
not have any material impact on the disclosures or on
the amounts reported in these financial statements.

2.11 Employee Benefits:

a) P ost Employment Benefits and Other Long Term

Benefits:

i) Defined Contribution Plan:

M ompany's contribution for the year paid/
payable to defined contribution retirement
benefit schemes are charged to Statement
of Profit and Loss in period in which the
related service is provided by the employee.
The Company's contribution towards
provident fund are considered to be defined
contribution plan which are expensed as
employee benefit expenses in the statement
of profit and loss in the period in which the
related service is provided for which the
Company makes contribution on monthly
basis. The Company's legal or constructive
obligation is limited to the contribution it
makes.

ii) Defined Benefit Plans:

M ompany's liabilities towards defined benefit
plans viz. gratuity expected to occur after
twelve months, are determined annually
by a qualified actuary using the Projected
Unit Credit Method. Actuarial valuations
under the Projected Unit Credit Method are
carried out at the balance sheet date by an
independent actuary. Actuarial gains and
losses are recognised in the Statement of
Other Comprehensive income in the period
of occurrence of such gains and losses for
gratuity. The retirement benefit obligation
recognised in the balance sheet represents
the present value of the defined benefit
obligation as adjusted for unrecognised past
service cost.

iii) P ther long-term employee benefits -
compensated absences:

M ccumulated absences expected to be
carried forward beyond twelve months is
treated as long-term employee benefit for
measurement purposes. The Company's
net obligation in respect of other long¬
term employee benefit of accumulating
compensated absences is the amount
of future benefit that employees have
accumulated at the end of the year. In respect
of compensated absences, actuarial gains/
losses, if any, are recognised immediately
in the Statement of Profit and Loss. That
benefit is discounted to determine its present
value. The obligation is measured annually
by a qualified actuary using the projected
unit credit method. Remeasurements are
recognised in profit or loss in the period in
which they arise.

b) Short term Employee Benefits:

M hort term employee benefits are benefits
payable and recognised in 12 months. Short¬
term employee benefits expected to be paid in
exchange for the services rendered by employees
are recognised undiscounted during the year as
the related service are rendered by the employee.
These benefits include performance incentives.
These are expensed as employee benefit expense
in the statement of profit and loss in the period
in which the related service is provided by the
employees.

2.12 Taxes on Income:

I ncome tax expense represents the sum of the current

tax and deferred tax.

i) Current tax

M urrent tax comprises the expected tax payable
or receivable on the taxable income or loss for
the year and any adjustment to the tax payable
or receivable in respect of previous years. The
amount of current tax reflects the best estimate
of the tax amount expected to be paid or received
after considering the uncertainty, if any, related
to income taxes. It is measured using tax rates and
tax laws enacted or substantively enacted by the
reporting date.

M urrent tax assets and current tax liabilities are
offset only if there is a legally enforceable right to
set off the recognised amounts, and it is intended
to realise the asset and settle the liability on a net
basis or simultaneously.

ii) Deferred tax

D eferred tax is recognised in respect of temporary
differences between the carrying amounts of
assets and liabilities for financial reporting
purposes and the corresponding amounts used for
taxation purposes. Deferred tax is also recognised
in respect of carried forward tax losses and tax
credits. However, deferred tax is not recognised :

• in case of temporary differences that arise from
initial recognition of assets or liabilities in a
transaction (other than business combination)
that affect neither the taxable profit nor the
accounting profit

• in case of temporary differences if any that
may arise from initial recognition of goodwill,
deferred tax liabilities are not recognised

• in case of temporary differences related to
investments in subsidiaries to the extent that
the Company is able to control the timing of
the reversal of the temporary differences and
it is probable that they will not reverse in the
foreseeable future

D eferred tax assets are recognised to the extent
that it is probable that future taxable profits will
be available against which they can be used. The
existence of unused tax losses is strong evidence
that future taxable profit may not be available.
Therefore, in case of a history of recent losses,
the Company recognises a deferred tax asset
only to the extent that it has sufficient taxable
temporary differences or there is convincing
other evidence that sufficient taxable profit will
be available against which such deferred tax asset
can be realised. Deferred tax assets unrecognised
or recognised, are reviewed at each reporting date
and are recognised/ reduced to the extent that it
is probable/ no longer probable respectively that
the related tax benefit will be realised.

D eferred tax is measured at the tax rates that are
expected to apply to the period when the asset is
realized or the liability is settled, based on the laws
that have been enacted or substantively enacted
by the reporting date.

D he measurement of deferred tax reflects the tax
consequences that would follow from the manner
in which the Company expects, at the reporting
date, to recover or settle the carrying amount of
its assets and liabilities.

D eferred tax assets and liabilities are offset if
there is legally enforceable right to offset current

tax liabilities and assets, and they relate to income
taxes levied by the same tax authority on the same
taxable entity, or on different tax entities, but they
intend to settle current tax liabilities and assets on
a net basis or their tax assets and liabilities will be
realized simultaneously.

Dransaction or event which is recognised outside
profit or loss, either in other comprehensive
income or in equity, is recorded along with the tax
as applicable.

M inimum Alternate Tax (MAT) under the provision
of Income Tax Act, 1961 is recognised as current
tax in the Statement of Profit and Loss. The credit
available under the Act in respect of MAT paid is
recognised as an asset only when and to the extent
there is reasonable evidence that the company
will pay normal income tax during the period
for which the MAT credit can be carried forward
for set off against the normal tax liability. MAT
credit recognised as an asset is reviewed at each
balance sheet date and written down to the extent
the aforesaid convincing evidence no longer
exists. Minimum Alternate Tax (MAT) Credit are
in the form of unused tax credits that are carried
forward by the Company for a specified period of
time, hence, it is presented as Deferred Tax Asset.