2.Material accounting policies

These notes provide a list of the material accounting policies adopted in the preparation of these financial statements. These policies
have been consistently applied to all the periods presented, unless otherwise stated.

2.1 Statement of Compliance and Basis of Preparation:

These standalone financial statements of the company have been prepared in accordance with Indian Accounting Standards (Ind AS)
under the historical cost convention on the accrual basis, except for certain financial assets and liabilities measured at fair value (refer
accounting policy regarding 'financial instruments') and the provisions of the Companies Act, 2013 (hereinafter referred to as "Act")
(to the extent notified) and presentation requirements of Division II of Schedule III to the Companies Act, 2013, (Ind-AS compliant
Schedule III), as applicable. The IND-AS are prescribed under Section 133 of the Act read with the Companies (Indian Accounting
Standards) Rules, 2015, as amended from time to time.

The Standalone financial statements are presented in INR (^) (Indian Rupees in Lakhs), which is also Company’s functional currency
and all values are rounded to the nearest lakhs, except when otherwise indicated. The Company has adopted all the Ind AS standards
w.e.f 1 April,2025 and the adoption was carried out in accordance with Ind AS 101, “First-time Adoption of Indian Accounting
Standards. ” with transition date as 1 April, 2024.

The transition was carried out from Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as
amended) read with Section 133 of the Act, which was the previous GAAP.

Reconciliations and the detailed descriptions of the impact arising from the transition to Ind AS have been presented in Note 3, which
also outlines the first-time adoption exemptions availed by the Company and the mandatory exceptions applied in accordance with
Ind AS 101 “First-time Adoption of Indian Accounting Standards. ” The figures for the year ended 31 March 2025 and the opening
balance sheet as at 1 April 2024 have been restated to comply with the requirements of Ind AS.

2.2 Summary of Material Accounting Policies:

(i) Current and Non-Current Classification:

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

a. Expected to be realised or intended to be sold or consumed in normal operating cycle or

b. Held primarily for the purpose of trading or

c. Expected to be realised within twelve months after the reporting period, of

d. 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:

a. It is expected to be settled in normal operating cycle or

b. It is held primarily for the purpose of trading or

c. It is due to be settled within twelve months after the reporting period, o

d. Does not have a right to defer 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 respectively. 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.

(ii) Presentation and disclosure of financial statements:

For the year ended 31 March 2026, the Company has prepared and presented its financial statements in accordance with the
requirements of Schedule III to the Companies Act, 2013. The Statement of Cash Flows has been prepared and presented
in accordance with Ind AS 7 “Statement of Cash Flows. ” The disclosure requirements pertaining to various items in the
Balance Sheet and Statement of Profit and Loss, as prescribed under Schedule III of the Act, have been provided by way of
notes forming part of these standalone financial statements.

The Company has reclassified previous year’s figures wherever necessary to conform to the classification and presentation
adopted in the current year. Accounting policies have been applied consistently except where a newly issued Indian Ac¬
counting Standard has been adopted for the first time or where a revision to an existing Indian Accounting Standard neces¬
sitates a change in the accounting policy previously followed.

(iii) Property, Plant and Equipment

a. Initial Recognition:

Property, plant and equipment (PPE) is recognised when it is probable that future economic benefits will flow into the com¬
pany and the cost can be reliably measured. Property, plant and equipment (PPE) held for use in the production or supply
of goods or services, or for administrative purposes, are stated in the Balance Sheet at cost, less accumulated depreciation
and accumulated impairment losses, if any.

The cost of an item of PPE comprises its purchase price, including import duties and non-refundable purchase taxes, af¬
ter deducting trade discounts and rebates. It also includes any directly attributable costs necessary to bring the asset to its
working condition and location for its intended use, and the present value of estimated costs of dismantling and removing
the asset or restoring the site on which it is located.

b. Subsequent measurement:

When significant parts of an item of PPE are required to be replaced at intervals, the Company recognizes such components
as separate components with distinct useful lives and depreciation methods. The carrying amount of the replaced compo¬
nent is derecognized. Subsequent expenditure is capitalized only when it is probable that future economic benefits associ¬
ated with the item will flow to the Company and the cost can be measured reliably. All other repair and maintenance costs
are recognized in the Statement of Profit and Loss as incurred.

c. Depreciation:

Depreciation on property, plant and equipment commences when the asset is available to use, i.e., when it is in the location
and condition necessary for it to be capable of operating in the manner intended by management. Depreciation is provided
on the cost of assets, net of their residual values, over their estimated useful lives using the straight-line method.

The estimated useful lives, residual values, and depreciation method are reviewed at the end of each reporting period, and
any changes in estimates are accounted for prospectively, in accordance with the requirements of Ind AS 8 “Accounting
Policies, Changes in Accounting Estimates and Errors.” The management considers the estimated useful lives to be realistic
and reflective of the expected pattern of consumption of the future economic benefits embodied in the asset.

d. Derecognition:

An item of Property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to
arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and
equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in
the statement of profit and loss.

(iv) Intangible assets

Intangible assets are recognised when it is probable that the future economic benefits that are attributable to the asset will flow to
the Company and the cost of the asset can be measured reliably. Intangible assets are stated at original cost net of tax/duty credits
availed, if any, less accumulated amortisation and cumulative impairment. All directly attributable costs and other administrative
and other general overhead expenses that are specifically attributable to acquisition of intangible assets are allocated and cap¬
italised as a part of the cost of the intangible assets. Intangible assets not ready for the intended use on the date of the Balance
Sheet are disclosed as “intangible assets under development”. Intangible assets are amortised on straight-line basis over the esti¬
mated useful life. The method of amortisation and useful life are reviewed at the end of each financial year and the effect of any
changes in the estimate being accounted for on a prospective basis. Amortisation on impaired assets is provided by adjusting the
amortisation charge in the remaining periods so as to allocate the asset’s revised carrying amount over its remaining useful life.

(v) Investment property

Properties held to earn rentals and/or capital appreciation are classified as investment property and are measured and report¬
ed at cost, including transaction costs and borrowing cost capitalised for qualifying assets, in accordance with the Company’s
accounting policy. For those under construction are included under Capital work in Progress of Investment Property. Policies
with respect to depreciation, useful life and derecognition are followed on the same basis as stated for Property, Plant and
Equipment vide Note 2(iii)(c) above.

(vi) Capital work in progress

Capital work-in-progress (CWIP) represents tangible development items and other PPE under construction that are not yet ready
for their intended use. This includes ongoing fabrication of prototypes, tooling, test rigs, and special equipment for selffunded
development projects.

(vii) Financial Instruments:

The Company recognises financial assets and financial liabilities when it becomes a party to the contractual provisions of the
instrument. Financial assets and financial liabilities are initially measured at fair value. Trade receivables/payables that do not
contain a significant financing component are initially measured at the transaction price. Transaction costs that are directly attrib¬
utable to the acquisition of financial assets or issue of financial liabilities, other than those classified at fair value through profit or
loss, are added to or deducted from the fair value of the respective financial asset or financial liability, as appropriate, on initial
recognition. Transaction costs directly attributable to the acquisition of financial assets or issue of financial liabilities classified
at fair value through profit or loss are recognised immediately in the Statement of Profit and Loss.

(viii) Financial Assets:

All regular way of purchases or sales of financial assets are recognised and derecognised on a trade date basis. Regular way pur¬
chases or sales of financial assets that require delivery of assets within the time frame established by regulation or convention in
the marketplace. All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value,
depending on the classification of the financial assets

a) Financial Assets at amortised cost:

Financial assets are subsequently measured at amortised cost using the Effective Interest Rate (EIR) method, if these financial
assets are held within a business whose objective is to hold these assets in order to collect contractual cash flows and the contrac¬
tual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal
amount outstanding.

Amortised cost is calculated by considering any discount or premium on acquisition and fees or costs that are an integral part of
the EIR.

The effective interest method is a method of calculating the amortised cost of financial assets and of allocating interest income
over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts (including all
fees and transaction costs and other premiums or discounts) through the expected life of the financial assets, or where appropri¬
ate, a shorter period, to the net carrying amount on initial recognition. Interest is recognised on an effective interest basis for debt
instruments other than those financial assets classified as at Fair Value through Profit and Loss (FVTPL).

b) Financial Assets at fair value through other comprehensive income (FVOCI):

A financial asset is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL

(a) the asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling
financial assets; and

(b) 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.

All financial assets not classified as measured at amortised cost or FVOCI as described above are measured at FVTPL. This
includes all derivative financial assets.

On initial recognition, the Company may irrevocably designate a financial asset that otherwise qualifies to be measured at amor¬
tised cost or at fair value through other comprehensive income (FVOCI) as measured at fair value through profit or loss (FVT¬
PL), if such designation eliminates or significantly reduces an accounting mismatch that would otherwise arise.

Financial assets designated at FVTPL, including derivative financial instruments, are initially measured at fair value and subse¬
quently remeasured at fair value at the end of each reporting period. Any gains or losses arising from changes in fair value are
recognised in the Statement of Profit and Loss in the period in which they arise. The net gain or loss recognised in the Statement
of Profit and Loss also includes any dividend income or interest income earned on such financial assets.

d) Derecognition:

The Company derecognises a financial asset when, and only when, the contractual rights to receive the cash flows from the asset
expire, or when the rights to receive the contractual cash flows are transferred in a transaction in which substantially all the risks
and rewards of ownership of the financial asset are transferred.

If the Company neither transfers nor retains substantially all the risks and rewards of ownership and does not retain control over
the financial asset, it derecognises the asset and recognises separately any rights and obligations created or retained in the trans¬
fer.

On derecognition of a financial asset in its entirety, the difference between the asset’s carrying amount and the sum of (i) the
consideration received or receivable and (ii) any cumulative gain or loss previously recognised in other comprehensive income
and accumulated in equity, is recognised in the Statement of Profit and Loss. Where such gain or loss would otherwise have been
recognised in profit or loss upon disposal of the asset, it is reclassified accordingly on derecognition.

e) Impairment:

The Company assesses at each reporting date whether a financial asset or a group of financial assets is impaired in accordance
with the expected credit loss (ECL) model prescribed under Ind AS 109 “Financial Instruments.” The ECL model requires the
recognition of impairment losses based on expected credit losses, rather than incurred losses.

The Company recognises lifetime expected credit losses for all trade receivables and contract assets that do not contain a signifi¬
cant financing component, applying the simplified approach permitted under Ind AS 109. For all other financial assets, the Com¬
pany measures the loss allowance at an amount equal to the 12-month expected credit losses, unless there has been a significant
increase in credit risk since initial recognition, in which case lifetime expected credit losses are recognised.

At each reporting date, the Company evaluates whether the credit risk on a financial asset has increased significantly since ini¬
tial recognition by considering reasonable and supportable information, including forward-looking macroeconomic factors. The
impairment loss, if any, is recognised in the Statement of Profit and Loss under “Other Expenses.”

(ix) Financial Liabilities and equity instruments:

a) Classification as debt or equity:

Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity in accordance with
the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

b) Equity Instruments:

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

c) Financial Liabilities:

All financial liabilities are measured at amortised cost using the effective interest method or at FVTPL.

Financial liabilities at amortised cost

Financial liabilities that are not held-for-trading and are not designated as at FVTPL are measured at amortised cost at the end of
subsequent accounting periods. The carrying amounts of financial liabilities that are subsequently measured at amortised cost are de¬
termined based on the effective interest method. Interest expense that is not capitalised as part of costs of an asset is included in the
‘Finance costs’ line item in the Statement of Profit and Loss.

The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense
over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the ex¬
pected life of the financial liability, or (where appropriate) a shorter period, to the net carrying amount on initial recognition.

Trade and other payables are recognised initially at fair value and subsequently at amortised cost.

A financial liability may be designated as at FVTPL upon initial recognition if:

i) such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise,

ii) The financial liability whose performance is evaluated on a fair value basis, in accordance with the Company’s documented risk
management

Fair value changes related to such financial liabilities including derivative contracts like forward currency contracts and options
to hedge the Company’s foreign currency risks are recognised in the Statement of Profit and Loss.

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities des¬
ignated upon initial recognition as FVTPL. Financial liabilities are classified as held for trading if these are incurred for the
purpose of repurchasing in the near term. Financial liabilities at FVTPL are stated at fair value, with any gains or losses arising
on remeasurement recognised in the statement of profit and loss.

d) De-recognition:

A financial liability is derecognised when, the obligation specified in the contract is discharged or cancelled or expires. The difference
between the carrying amount of the financial liability derecognised and the consideration paid (including any non-cash assets trans¬
ferred or new liabilities assumed) is recognised in the Statement of Profit and Loss.

When an existing financial liability is replaced by another liability from the same lender on substantially different terms, or when the
terms of an existing liability are substantially modified, such an exchange or modification is accounted for as the derecognition of the
original financial liability and the recognition of a new financial liability. The difference between the carrying amount of the original
liability and the fair value of the new liability is recognised in the Statement of Profit and Loss.

(x) Offsetting

Financial assets and financial liabilities are offset and the net amount presented in the Balance Sheet when, and only when, the Com¬
pany current 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.

(xi) Fair value of financial instruments:

In determining the fair value of its financial instruments, the Company uses a variety of methods and assumptions that are based on
market conditions and risks existing at each reporting date. The methods used to determine fair value include discounted cash flow
analysis, available quoted market prices and dealer quotes. For financial assets and liabilities maturing within one year from the Bal¬
ance Sheet date and which are not carried at fair value, the carrying amounts being approximate fair value due to the short maturity
of these instruments.

(xii) 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.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset
or liability, if market participants act in their economic best interest.

A fair value measurement of a non-financial asset considers a market participant's ability to generate economic benefits by using the
asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to mea¬
sure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value
hierarchy, based on the lowest level input that is significant to the fair value measurement.

For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines whether trans¬
fers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to
the fair value measurement as a whole) at the end of each reporting period.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities based on the nature, character¬
istics and risks of the asset or liability and the level of the fair value hierarchy.

(xiii) Borrowing Costs:

Borrowing costs are interest and other costs incurred in connection with the borrowing of funds. Borrowing costs directly attributable
to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time
to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready
for their intended use or sale. Interest income earned on the temporary investment of specific borrowings pending their expenditure
on qualifying assets is deducted from the borrowing costs eligible for capitalisation. All other borrowing costs are recognised in the
Statement of Profit and Loss in the period in which they are incurred.

(xiv) Inventories:

Inventories are stated at the lower of cost and net realisable value by following weighted average method. Cost of raw materials and
goods comprises cost of purchase and other costs incurred in bringing such inventories to their present location and condition. Cost
of work-in-progress and finished goods includes cost of raw materials, direct labour, applicable production overheads and other costs
incurred in bringing the inventories to their present location and condition.Net realisable value represents the estimated selling price
in the ordinary course of business less the estimated costs of completion and costs necessary to make the sale.

(xv) Revenue recognition:

1. General Principles

The Standalone Financial Statements have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under
the Companies Act, 2013.

2. Revenue from Contracts with Customers (Ind AS 115)

Revenue is recognised in accordance with Ind AS 115, which establishes a comprehensive framework for determining when and
how much revenue to recognise. The Company applies the following five-step approach to revenue recognition:

a) Identify the contract with a customer:

Contracts are evaluated to ensure enforceable rights and obligations exist.

b) Identify performance obligations:

Each contract may contain multiple distinct obligations, such as product delivery, installation, maintenance, or after-sales
service.

c) Determine the transaction price:

The Company estimates the consideration it expects to receive, adjusting for variable elements like discounts, rebates, price
adjustments or performance bonuses, as applicable.

d) Allocate the transaction price:

Where multiple performance obligations are present, the transaction price is allocated based on the relative consolidated
selling prices of each obligation.

e) Recognise revenue when/as performance obligations are satisfied:

Point in time: Revenue for the sale of finished goods, spare parts, and equipment is recognised when control passes to the cus¬
tomer, which is generally upon delivery or acceptance by the customer.

Over time: For services and long-term engineering/manufacturing contracts, revenue is recognised over the duration of the con¬
tract as the performance obligations are satisfied, typically using the percentage of completion method. Progress is measured either
by input methods (costs incurred/total expected costs) or output methods (milestones achieved, units delivered).

The Company satisfies a performance obligation and recognises revenue over time, if one of the following criteria is met:

1) The customer simultaneously receives and consumes the benefits provided by the Company’s performance as the Com¬
pany performs; or

2) The Company’s performance creates or enhances an asset that the customer controls as the asset is created or enhanced;
or

3) The Company’s performance does not create an asset with an alternative use to the Company and the entity has an en¬
forceable right to payment for performance completed to date.

Revenue towards satisfaction of a performance obligations is measured at the amount of transaction price allocated to that perfor¬
mance obligation, taking into account contractually defined terms of payment and excluding taxes and duty.

Revenue from sale of goods

The Company recognises revenue from sale of goods once the customer takes possession of the goods. Revenue represents the
invoice value of goods provided to third parties net of discounts and taxes.

Operation and maintenance income

The Company recognises revenue from Operations and Maintenance services using the time-elapsed measure of progress i.e. input
method on a straight-line basis.

(xvi) Other income

Other income includes interest income, rental income, and other gains not arising from the Company’s core operations. Interest in¬
come is recognized on a time proportion basis, taking into account the amount outstanding and the applicable interest rate.

Rental income is recognized on an accrual basis as per the terms of the lease agreement.

Profit on sale of fixed assets is recognized on disposal of assets, being the difference between the sale consideration and the carrying
amount of the asset.

Dividend income is accounted in the period in which the right to receive the same is established.

(xvii) Contract Balances:

Contract assets

A contract asset is the right to consideration in exchange for goods or services transferred to the customer. If the Company performs
by transferring goods or services to a customer before the customer pays consideration or before payment is due, a contract asset is
recognised for the earned consideration that is conditional.

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 re¬
quired before payment of consideration is due.

Contract liabilities

A contract liability is the obligation to transfer goods or services to a customer for which the Company has received consideration
(or an amount of consideration is due) from the customer. Contract liabilities are recognised as revenue when the Company performs
obligations under the contract.

(xviii) Employee Benefit Plan:

a) Post-employment benefits

i. Defined Benefit Plan:

The Company operates a defined benefit gratuity plan in India, which requires contributions to be made to a separately
administered fund. However, the company has made some contributions during the year. The cost of providing ben¬
efits under the defined benefit plan is based on an independent actuarial valuation carried out using the projected unit
credit method.

Defined benefit costs in the nature of current and past service cost and net interest expense or income are recognised
in the Statement of Profit and Loss in the period in which they occur.

Re-measurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included
in net interest on the net defined benefit liability and the return on plan assets (excluding amounts included in net in¬
terest on the net defined benefit liability), are recognised immediately in the balance sheet with a corresponding debit
or credit to retained earnings through OCI in the period in which they occur. Re-measurements are not reclassified to
profit and loss in subsequent periods. Past service cost is recognised in statement of profit and loss in the period of a
plan amendment.

ii. Defined Contribution Plan:

Retirement benefit in the form of Provident Fund is a defined contribution scheme. The Company has no obligation,
other than the contribution payable to the provident fund. The Company recognizes contribution payable to the prov¬
ident fund scheme as a charge to the Statement of Profit and Loss for the period in which the contributions to the re¬
spective funds accrue.

b) Short term employee benefits:

Employee benefits such as salaries, wages, short term compensated absences, bonus, ex-gratia and performance-linked
rewards falling due wholly within twelve months of rendering the service are classified as short-term employee bene¬
fits and are expensed in the period in which the employee renders the service.

(xix) Taxation

Tax on Income comprises current and deferred tax. Tax on income for the current period is determined on the basis of taxable income
and tax credits computed in accordance with the provisions of the Income Tax Act,1961. Tax on income for the current period is
determined on the basis of taxable income and tax credits computed in accordance with the provisions of the Income Tax Act,1961.

Current Tax:

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the reporting period and any adjust¬
ment 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.

Deferred Tax:

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the Standalone financial
statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are recognised for all
taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that
it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. 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 profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-as¬
sessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the
deferred tax asset to be recovered.

Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the
likely timing and the level of future taxable profits together with future tax planning strategies. Deferred tax liabilities and assets are
measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates
(and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax relating to items is
recognised outside profit or loss (either in other comprehensive income or in equity). Deferred tax items are recognised in correlation
to the underlying transaction either in OCI or directly in equity. 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.

(xx) 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.

The Company as a lessee

The Company recognises a right-of-use asset and a lease liability at the lease commencement date except for leases with a term of
twelve months or less (short-term leases) and low value assets. For these short-term and low value leases, the lease payments asso¬
ciated with these leases are recognised as an expense on a straight-line basis over the lease term. The Company applies the available
practical expedients wherein it:

a. Used a single discount rate to a portfolio of leases with reasonably similar characteristics

b. Relies on its assessment of whether leases are onerous immediately before the date of initial application

c. Applies the short-term leases exemptions to leases with lease term that ends within 12 months at the date of initial application

d. Includes the initial direct costs from the measurement of the right of-use asset at the date of initial application

e. Uses hindsight in determining the lease term where the contract contains options to extend or terminate the lease.

Right of use assets

The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease
payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and
remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the end of the lease
term, unless the lease transfers ownership of the underlying asset to the Company by the end of the lease term or the cost of the right
of-use asset reflects that the Company will exercise a purchase option. In that case the right-of-use asset will be depreciated over the
useful life of the underlying asset. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted
for certain remeasurements of the lease liability.

Lease Liability

The Company recognise the lease liability at the present value of the lease payments discounted at the incremental borrowing rate at
the date of initial application. The lease payments include fixed payments (including in substance fixed payments) less any lease in¬
centives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value
guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Com¬
pany 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 in¬
ventories) in the period in which the event or condition that triggers the payment occurs. For a lease modification that is not a separate
lease, at the effective date of the modification, the lessee accounts for the lease modification by remeasuring the lease liability using
a discount rate determined at that date and the lessee makes a corresponding adjustment to the right-of-use asset. Low-value asset
leases and short-term leases are exempt from recognition of right-of-use assets and lease liabilities and are recognised as an expense
on a straight-line basis over the lease term.

Subsequent measurement of lease liability

The lease liability is remeasured when there is change in future lease payments arising from a change in an index or a rate, or a change
in the estimate of the guaranteed residual value, or a change in the assessment of purchase, extension or termination option. When the
lease liability is measured, the corresponding adjustment is reflected in the right-of-use asset. wwwSubsequently, the lease liability is
measured at amortised cost using the effective interest method.

The Company as a lessor

The determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement at the inception of
the lease. The arrangement is, or contains, a lease if fulfilment of the arrangement is dependent on the use of a specific asset or assets
and the arrangement conveys a right to use the asset or assets, even if that right is not explicitly specified in an arrangement. 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. Amounts due from lessees under finance leases are recorded as receivables classified under Financial Asset at the Company’s
net investment in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return
on the net investment outstanding in respect of the lease. Rental income from operating leases is generally recognised on a straight¬
line basis over the term of the relevant lease. Where the rentals are structured solely to increase in line with expected general inflation
to compensate for the Company’s expected inflationary cost increases, such increases are recognised in the year in which such benefits
accrue. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset
and recognised on a straight-line basis over the lease. 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.

(xxi) Share-based payment arrangements

The Company accounts for employee stock options in accordance with Ind AS 102 - Share-based Payment. The fair value of stock
options granted to employees is determined on the grant date and recognised as employee compensation expense over the vesting
period on a straight-line basis, with a corresponding increase in equity. The expense recognised is based on the Company’s estimate
of the number of options expected to vest. Where options lapse after vesting, the cumulative amount recognised in respect of such
options is transferred within equity. The dilutive effect of outstanding stock options is considered in the computation of diluted
earnings per share.

(xxii) Securities premium

(i) Securities premium includes:

a. The difference between the face value of the equity shares and the consideration received in respect of shares issued.

b. The fair value of the stock options which are treated as expense, if any, in respect of shares allotted pursuant to Stock Op¬
tions Scheme.

(ii) The issue expenses of securities which qualify as equity instruments are written off against securities premium.

(xxiii) Foreign currencies

(i) The functional currency and presentation currency of the Company is Indian Rupee.

(ii) Transactions in currencies other than the Company’s functional currency are recorded on initial recognition using actual
exchange rate or a rate that approximates with it at the transaction date. At each Balance Sheet date, foreign currency monetary
items are reported at the closing spot rate. Non-monetary items that are measured in terms of historical cost in foreign currency
are not translated. Exchange differences that arise on settlement of monetary items or on reporting of monetary items at each
Balance Sheet date at the closing spot rate is recognised in the Statement of Profit and Loss in the period in which they arise
except for:

a. exchange differences on foreign currency borrowings relating to assets under construction for future productive use, are
included in the cost of those assets when such exchange differences are regarded as an adjustment to finance costs on
those foreign currency borrowings; and

b. exchange differences on transactions entered to hedge certain foreign currency risks.

(iii) exchange rate as of the date on which the non-monetary asset or non-monetary liability is recognised on payment or re¬
ceipt of advance consideration is used for initial recognition of related asset, expense or income.

(iv) Financial statements of foreign operations whose functional currency is different than Indian Rupees are translated into
Indian Rupees as follows:

a. assets and liabilities for each Balance Sheet presented are translated at the closing rate at the date of that Balance Sheet;

b. income and expenses for each income statement are translated at average exchange rate for the reporting period; and

c. all resulting exchange differences are recognised in other comprehensive income and accumulated in equity as foreign
currency translation reserve for subsequent reclassification to profit or loss on disposal of such foreign operations.