2. Significant Accounting Policies

This note provides a list of significant accounting
policies adopted in the presentation of these financial
statements. These policies have been consistently
applied to all the years presented, unless otherwise
stated.

2.1 Basis of Preparation

(i) Compliance with Ind AS

The Financial statements (FS) of the company have
been prepared in accordance with Indian Accounting
Standards (Ind AS) notified under Section 133 of the
Companies Act, 2013 (' the Act') [Companies (Indian
Accounting Standards) Rules, 2015, as amended by
notification dated March 31,2016] and other provisions
of the Act.

Effective April 1, 2016, the Company has adopted all
the Ind AS standards and the adoption was carried
out in accordance with Ind AS 101 'First time Adoption
of Indian Accounting Standards, with April 1, 2015 as
the transition date. The transition was carried out from
Indian Accounting Principles generally accepted in
India as prescribed under Section 133 of the Act, read
with Rule 7 of the Companies (Accounts) Rules, 2014
(IGAAP) which was the previous GAAP.

These financial statements are authorized for issue
on 15^th May, 2026 in accordance with a resolution of
the Board of Directors. Board of Directors permits the
revision to the financial statements after obtaining
necessary approvals or at the instance of regulatory
authorities as per provisions of the Companies Act,
2013.

(ii) Historical Cost Convention

The Financial Statements have been prepared on a
historical cost basis, except the following:

• Certain financial assets and liabilities which are
measured at fair value/amortized cost.

• Defined Benefit Plans- plan assets measured at
fair value.

iii) Current v/s Non Current Classification

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

• Expected to be realized or intended to sold or
consumed in normal operating cycle

• Held primarily for the purpose of trading

• Expected to be realized within twelve months
after the reporting period, or

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

All other assets are classified as non-current.

A liability is 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 after
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 its realization in cash and
cash equivalents. The Company has identified twelve
months as its operating cycle.

2.2 Property, Plant & Equipment

Property, plant and equipment are stated at historical
cost less depreciation. Historical cost includes
expenditure that is directly attributable to the
acquisition of the items.

Subsequent costs are included in the asset's carrying
amount or recognized 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 recognized in profit or loss during the reporting
period, in which they are incurred.

Capital work-in-progress includes cost of property,
plant and equipment under installation/under
development as at the balance sheet date.

Depreciation methods, estimated useful lives and
residual value.

Depreciation is provided on a pro-rata basis on the
Straight Line method (SLM) over the estimated useful
lives of assets, based on the rates prescribed under
Schedule II to the Companies Act, 2013, as applicable
on the last date of accounting period. The useful life
of assets has been used as per Schedule - II of the
companies Act 2013.

The property, plant and equipment acquired under
finance leases and other leasehold improvements
are depreciated over the assets' useful life or over the
shorter of the assets' useful life and the lease term if
there is no reasonable certainty that the Company will
obtain ownership at the end of the lease term.

The asset's useful lives and methods of depreciation
are reviewed at the end of each reporting period and
adjusted prospectively, if appropriate..

An asset's carrying amount is written down
immediately to its recoverable amount if the asset's
carrying amount is greater than its estimated
recoverable amount.

Gains and losses on disposals are determined by
comparing net disposal proceeds with carrying
amount of the asset. These are included in profit or loss
within other income.

2.3 Intangible Assets

Intangible assets acquired separately are measured
on initial recognition at historical cost. Intangibles
assets have a finite life and are subsequently carried
at cost less any accumulated amortization.

Intangible assets with finite lives are amortized over
the useful life. The amortization period and the
amortization method for an intangible asset with a
finite useful life are reviewed at least at the end of
each reporting period. Changes in the expected

useful life or the expected pattern of consumption
of future economic benefits embodied in the asset
are considered to modify the amortization period or
method, as appropriate, and are treated as changes
in accounting estimates. The amortization expense on
intangible assets with finite lives is recognized in the
statement of profit and loss unless such expenditure
forms part of carrying value of another asset.

2.4 Revenue Recognition

Revenue is recognized to the extent that it is probable
that the economic benefits will flow to the Company
and the revenue can be reliably measured, regardless
of when the payment is received. The Company has
concluded that it is the principal in all of its revenue
arrangements since it is the primary obligor in all the
revenue arrangements as it has pricing latitude and is
also exposed to inventory and credit risks.

Revenue is measured at the fair value of the
consideration received or receivable, taking into
account contractually defined terms of payment
and excludes taxes/duties collected on behalf of the
government.

(a) Sale of goods

Revenue from the sale of goods is recognized, when
the significant risks and rewards of ownership of the
goods have passed to the buyer, usually on delivery
of the goods. Revenue from the sale of goods is
measured at the fair value of consideration received
or receivable, net of returns and allowances, trade
discounts, volume rebates. Accordingly, revenues
from sale of goods are stated gross of GST, sales tax
and value added tax (VAT) are not received by the
company on its own account but collected on behalf
of the government and accordingly, are excluded
from revenue.

(b) Interest income

Interest income is recognized using the time proportion
basis, based on the underlying interest rates.

(c) Rental Income

Rental income is recognized on a time-apportioned
basis in accordance with the underlying substance of
the relevant contract.

(d) Dividend

Dividend is recognized when the company's right to
receive the payment is established, which is generally
when shareholders approve the dividend.

2.5 Inventories

Inventories are valued at the lower of cost (including
prime cost and other overheads incurred in bringing
the inventories to their present location and condition)
and net realizable value.

The comparison of cost and net realizable value is
made on an item-by-item basis.

Raw materials, goods in transit, packing materials and
stores and spares are valued at cost. The cost includes
purchase price, inward freight and other incidental
expenses net of refundable duties, levies and taxes,
where applicable.

Finished goods and work-in-progress are valued
at lower of cost and net realizable value. Cost is
determined on the basis of actual cost and comprises
material, labour and applicable overhead expenses
including depreciation. The net realizable value of
materials in process is determined with reference to
the selling prices of related finished goods. Stores and
spares are valued at cost.

Traded Goods are valued on actual cost. The cost
includes cost of purchase and other costs incurred in
bringing the inventories to their present location and
condition.

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

2.6 Fair Value Measurement

Accounting policies and disclosures require
measurement of fair value for both financial and non¬
financial assets.

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.

2.7 Borrowing Costs

General and specific borrowing costs that are
directly attributable to the acquisition, construction or
production of a qualifying asset are capitalized during
the period of time that is required to complete and
prepare the asset for its intended use or sale. Qualifying
assets are assets that necessarily take a substantial
period of time to get ready for their intended use or
sale.

Investment income earned on the temporary
investment of specific borrowings pending their
expenditure on qualifying assets is deducted from
the borrowing costs eligible for capitalization. Other
borrowing costs are expensed in the period in which
they are incurred.

2.8 Financial Instruments

A financial instrument is any contract that gives rise to
a financial asset of one entity and a financial liability
or equity instrument of another entity.

Financial Assets

(a) Initial recognition and measurement:

All financial assets are recognized initially at fair value
and, in the case of financial assets not recorded at fair
value through profit or loss, transaction costs that are
attributable to the acquisition of the financial asset.

(b) Subsequent measurement:

For purposes of subsequent measurement financial
assets are classified in two broad categories:

Financial assets at fair value

Financial assets at amortized cost

(c) Classification:

The Company classifies financial assets as subsequently
measured at amortized cost, fair value through other
comprehensive income or fair value through profit or
loss on the basis of its business model for managing
the financial assets and the contractual cash flows
characteristics of the financial asset.

(d) Financial assets measured at fair value through
other comprehensive income (FVTOCI):

Financial assets under this category are measured
initially as well as at each reporting date at fair value.
Fair value movements are recognized in the other
comprehensive income.

(e) Financial assets measured at fair value through
profit or loss (FVTPL):

Financial assets under this category are measured
initially as well as at each reporting date at fair value
with all changes recognized in profit or loss.

Financial Liabilities

(a) Initial recognition and measurement:

All financial liabilities are recognized initially at fair
value and, in the case of loans, borrowings and
payables, net of directly attributable transaction costs.
Financial liabilities include trade and other payables,
loans and borrowings including bank overdrafts and
derivative financial instruments.

(b) Classification & Subsequent measurement:

If a financial instrument that was previously recognized
as a financial asset is measured at fair value through
profit or loss and its fair value decreases below zero, it
is a financial liability measured in accordance with IND
AS. Financial liabilities are classified as held for trading,
if they are incurred for the purpose of repurchasing in
the near term.

(c) Financial liabilities measured at fair value
through profit or loss:

Financial liabilities at fair value through profit or loss
include financial liabilities held for trading. At initial
recognition, such financial liabilities are recognized at
fair value.

Financial liabilities at fair value through profit or loss
are, at each reporting date, measured at fair value
with all the changes recognized in the Statement of
Profit and Loss.

Offsetting financial instruments:

Financial assets and liabilities are offset and the net
amount reported in the balance sheet when there is
a legally enforceable right to offset the recognized
amounts and there is an intention to settle on a
net basis to realize the asset and settle the liability
simultaneously.

Subsequent recoveries of amounts previously written
off are credited to Other Income.

2.9 Leases

As a lessee

The Company's lease asset classes primarily consist
of leases for land. The 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) the Company has
substantially all of the economic benefits from use of
the asset through the period of the lease and (iii) the
Company has the right to direct the use of the asset.

At 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.

Certain lease arrangements includes the options to
extend or terminate the lease before the end of the
lease term. ROU assets and lease liabilities includes
these options when it is reasonably certain that they
will be exercised. The right-of-use assets are initially
recognized 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.

Right-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. For the purpose of
impairment testing, the recoverable amount (i.e. the
higher of the fair value less cost to sell and the value-
in-use) is determined on an individual asset basis
unless the asset does not generate cash flows that are
largely independent of those from other assets.

Lease liability and ROU asset have been separately
presented in the Balance Sheet and lease payments
have been classified as financing cash flows.

As a lessor

Leases for which the Company is a lessor is classified as
a finance or operating lease. Whenever the terms of
the lease transfer substantially all the risks and rewards
of ownership to the lessee, the contract is classified
as a finance lease. All other leases are classified as
operating leases.

When the Company is an intermediate lessor, it
accounts for its interests in the head lease and the
sublease separately. The sublease is classified as a
finance or operating lease by reference to the right-
of-use asset arising from the head lease. For operating
leases, rental income is recognized on a straight line
basis over the term of the relevant lease.

2.10 Employee Benefit

Employee benefits include provident fund, employee
state insurance scheme, gratuity, compensated
absences and performance incentives.

(i) Short-term obligations

Liabilities for wages and salaries, including
nonmonetary benefits that are expected to be settled
wholly within 12 months after the end of the period in
which the employees render the related service are
recognized in respect of employees' services up to
the end of the reporting period and are measured at
the amounts expected to be paid when the liabilities
are settled. The liabilities are presented as current
employee benefit obligations in the Balance Sheet.

The cost of short-term compensated absences is
accounted as under:

(a) in case of accumulated compensated absences,
when employees render the services that
increase their entitlement of future compensated
absences; and

(b) in case of non-accumulating compensated
absences, when the absences occur.

(ii) Other long-term employee benefit obligations

The liabilities for compensated absences are not
expected to be settled wholly within 12 months after
the end of the period in which the employees render
the related service. They are therefore measured
as the present value of expected future payments
to be made in respect of services provided by
employees up to the end of the reporting period using
the projected unit credit method. The benefits are
discounted using the market yields at the end of the
reporting period that have terms approximating to
the terms of the related obligation. Remeasurements
as a result of experience adjustments and changes
in actuarial assumptions are recognized in profit or
loss. The obligations are presented as current liabilities
in the balance sheet if the entity does not have an
unconditional right to defer settlement for at least
twelve months after the reporting period, regardless
of when the actual settlement is expected to occur.

(iii) Post-employment obligations
Defined contribution plans

The Company's contribution to provident fund are
considered as defined contribution plans and are
charged as an expense based on the amount of
contribution required to be made and when services
are rendered by the employees.

Defined benefit plan

For defined benefit plans in the form of gratuity, the
cost of providing benefits is determined using the
Projected Unit Credit method, with actuarial valuations
being carried out at each balance sheet date.
Actuarial gains and losses are recognized in the Other
Comprehensive Income in the period in which they
occur. Past service cost is recognized immediately to
the extent that the benefits are already vested and
otherwise is amortized.

2.H Income Taxes

Tax Expense is the aggregate amount included in the
determination of profit or loss for the period in respect
of current tax and current tax.

Current Income Taxes

Current income tax is measured at the amount
expected to be paid to the tax authorities in
accordance with the Income Tax Act, 1961 and
rules thereunder. Current income tax assets and
liabilities are measured at the amount expected to be
recovered from 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 reporting date. Current income tax relating to
items recognized outside profit or loss is recognized
outside profit or loss (either in OCI or in equity).

Current tax items are recognized 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 tax is provided using the liability method
on temporary differences between the tax bases of
assets and liabilities and their book bases. Deferred tax
liabilities are recognized for all temporary differences,
the carry forward of unused tax credits and any
unused tax losses. Deferred tax assets are recognized
to the extent that it is probable that taxable profit will
be available against which the deductible temporary
differences, and the carry forward of unused tax
credits and unused tax losses can be utilized. Deferred
tax assets and liabilities are measured at the tax rates
that are expected to apply in the year when the
asset is realized or the liability is settled, based on
tax rates (and tax laws) that have been enacted or
substantively enacted at the reporting date.

Deferred tax relating to items recognized outside profit
or loss is recognized outside profit or loss. Deferred tax
items are recognized in correlation to the underlying
transaction either in OCI or directly in equity. The
carrying amount of deferred tax assets is reviewed at
each reporting date and reduced to the extent that
it is no longer probable that sufficient taxable pro fit
will be available to allow all or part of the deferred
tax asset to be utilized. Unrecognized deferred tax
assets are re-assessed at each reporting date and are
recognized to the extent that it has become probable
that future taxable profits will allow the deferred tax
asset to be recovered.

Deferred tax assets and deferred tax liabilities are
offset if a legally enforceable right exists to set off
current tax assets against current tax liabilities and the
deferred taxes relate to the same taxable entity and
the same taxation authority.

Minimum Alternate Tax (""MAT”) credit is recognized
as an asset only when and to the extent there is
convincing evidence that the relevant members
of the Company will pay normal income tax during
the specified period. Such asset is reviewed at each
reporting period end and the adjusted based on
circumstances then prevailing.

2.12 Share Capital and Securities Premium
Reserve

Ordinary shares are classified as equity. Incremental
costs directly attributable to the issue of new shares
are shown in equity as a deduction, net of tax, from
the proceeds.

Par value of the equity share is recorded as share
capital and the amount received in excess of the par
value is classified as securities premium reserve.

2.13 Earnings per Share

As per Ind AS 33, Earning Per Share, Basic earnings per
share are computed by dividing the net profit for the
year attributable to the shareholders' and weighted
average number of shares outstanding during the
year. The weighted average numbers of shares also
includes fixed number of equity shares that are issuable
on conversion of compulsorily convertible preference
shares, debentures or any other instrument, from the
date consideration is receivable (generally the date
of their issue) of such instruments. Diluted earnings
per share is computed using the net profit for the
year attributable to the shareholder' and weighted
average number of equity and potential equity shares
outstanding during the year including share options,
convertible preference shares and debentures,
except where the result would be anti-dilutive.
Potential equity shares that are converted during
the year are included in the calculation of diluted
earnings per share, from the beginning of the year or
date of issuance of such potential equity shares, to
the date of conversion.

2.14 Cash and Cash Equivalents

Cash and cash equivalents in the balance sheet
comprise cash on hand and at bank, deposits held
at call with banks, other short-term highly liquid
investments with original maturities of three months or
less that are readily convertible to a known amount of

cash and are subject to an insignificant risk of changes
in value and are held for the purpose of meeting short¬
term cash commitments.

For the purpose of the statement of cash flows, cash
and cash equivalents consist of cash and short-term
deposits, as defined above, net of outstanding bank
overdrafts as they are considered an integral part of
the Company's cash management.