2 Material accounting policies
2.01 Basis of compliance
The Standalone Financial Statements which comprises the Balance Sheet as at 31st March'2026, Statement of
Profit & Loss, Statement of Cash Flow & Statement of Changes in Equity for the year ending 31st March'2026
and a summary of the Significant Accounting Policies & Other Explanatory Information (together herein after as
'Standalone Financial Statements') , have been prepared in accordance with Indian Accounting Standards notified
under section 133 of the Companies Act'2013 read with rule 3 of the Companies (Indian Accounting Standards)
Rules 2015 as amended from time to time, the provisions of the Companies Act'2013 (the Act) to the extent notified,
guidelines issued by SEBI & other accounting principles generally accepted in India. The standalone Financial
Statements have been approved by the Board of Directors in its meeting held on 5th May'2026.
2.02 Basis of preparation and presentation
The Standalone Financial Statements have been prepared on the historical cost basis, except financial instruments
and defined benefit plans which are measured at fair value at the end of each reporting period. Historical cost is
generally based on the fair value of the consideration given in exchange for goods and services. 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. Presentation requirements of Division II of Schedule III of The Companies
Act,2013 as amended as applicable to Standalone Financial Statements have been followed. The standalone
Financial Statements are presented in Indian Rupees(INR) in Lakhs rounded of to 2 decimal place as permitted by
schedule III to the Companies Act,2013
All assets and liabilities have been classified as current or non-current as per the Company's normal operating cycle
and other criteria set out in the Schedule III to the Act.
2.03 Critical accounting estimates, assumptions and judgements
The preparation of the Standalone Financial Statements requires management to make estimates, assumptions and
judgments that affect the reported balances of assets and liabilities and disclosures as at the date of the Standalone
Financial Statements and the reported amounts of income and expense for the periods presented.
The estimates and associated assumptions are based on historical experience and other factors that are considered
to be relevant. Actual results may differ from these estimates considering different assumptions and conditions.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimates are revised and future periods are affected.
The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying values
of assets and liabilities within the next financial year are discussed below.
(i) Estimation of defined benefit obligation
Employee benefit obligations are determined using actuarial valuations. An actuarial valuation involves
making various assumptions that may differ from actual developments. These include the estimation of
the appropriate discount rate, future salary increases and mortality rates. Due to the complexities involved
in the valuation and its long-term nature, the employee benefit obligation is highly sensitive to changes
in these assumptions. All assumptions are reviewed at each reporting date. Significant assumptions are
required when setting these criteria and a change in these assumptions would have a significant impact on
the amount recorded in the Company's balance sheet and the statement of profit and loss.
(ii) Estimation of current tax and deferred tax
Significant management judgment 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. The amount of total deferred
tax assets could change if management estimates of projected future taxable income or if tax regulations
undergo a change. Current and deferred tax are recognised as an expense or income in the statement of
profit and loss, except when they relate to items credited or debited either in other comprehensive income
or directly in other equity.
(iii) Useful lives of depreciable/amortizable assets
Management reviews the estimated useful lives and residual value of PPE and Intangibles at the end of
each reporting period. Factors such as changes in the expected level of usage, technological developments
and amortization product life-cycle, could significantly impact the economic useful lives and the residual
values of these assets. Consequently the future depreciation and amortization charge could be revised
and may have an impact on the profit of the future years. This such reassessment may result in change in
depreciation and amortisation expense in future periods
- In the process of applying the Company's accounting policies, Management has made the following judgements,
which have the most significant effect on the amounts recognised in the Statements of Profit and Loss
(i) Fair value measurement
Management applies valuation techniques to determine the fair value of financial instruments (where
active market quotes are not available) and non-financial assets. This involves developing estimates and
assumptions consistent with how market participants would price the instrument. Management bases its
assumptions on observable data as far as possible but this is not always available. In that case management
uses the best information available. Estimated fair values may vary from the actual prices that would be
achieved in an arm's length transaction at the reporting date (refer note 49). The change in considerations
of inputs for making assumption about these factors could affect the reported fair value.
(ii) Evaluation of indicators for impairment of assets
The evaluation of applicability of indicators of impairment of assets is based on assessment of several
external and internal factors which could result in deterioration of recoverable amount of the assets.
(iii) Provisions and contingencies
From time to time, the Company is subject to legal proceedings, the ultimate outcome of each being subject
to uncertainties inherent in litigations. A provision for litigation is made when it is considered probable that
a payment will be made and the amount can be reasonably estimated. Significant judgement is required
when evaluating the provision including, the probability of an unfavourable outcome and the ability to
make a reasonable estimate of the amount of potential loss. Provisions for litigations are reviewed at each
accounting period and revisions made for the changes in facts and circumstances. Contingent liabilities
are disclosed in the notes forming part of the Standalone Financial Statements. Contingent assets are not
disclosed in the Standalone Financial Statements unless an inflow of economic benefits is probable.
2.04 Current and 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 satisfy any of the following criteria:
• It is expected to be realized or intended to be sold or consumed in normal operating cycle;
• It is held primarily for the purpose of trading of traded & manufactured goods
• It is expected to be realized within twelve months after the reporting period; or
• It is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least
twelve months after the reporting period.
• Current assets includes current portion of assets.
A liability is classified as current when it satisfy any of the following criteria::
• It is expected to be settled in normal operating cycle;
• It is held primarily for the purpose of trading of traded & manufactured goods
• It is due to be settled within twelve months after the reporting period; or
• There is no unconditional right to defer settlement of the liability for at least twelve months after the
reporting period.
• Current Liabilities includes current portion of liabilities.
Deferred tax assets and liabilities are classified as non-current assets and liabilities.
Operating Cycle:
Based on the nature of activities of the company & normal time between acquisition of assets & their realization
in cash & cash equivalents, the company has determined its operating cycle as 12 months for the purpose of
classification of its assets & liabilities as current & non-current except real estate which may exceed twelve months
and vary on project to project basis depending on the life of the project.
2.05 Property Plant & Equipment
i) Initial recognition and measurement
An item of property, plant and equipment recognized 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 Property, Plant and Equipment are measured at cost less accumulated depreciation/amortization
and accumulated impairment losses. Cost includes expenditure that is directly attributable to bringing the
asset, inclusive of non-refundable taxes & duties, to the location and condition necessary for it to be capable
of operating in the manner intended by management. When parts of an item of property, plant and equipment
have different useful life, they are recognized separately. Items of spare parts, stand-by equipment and
servicing equipment which meet the definition of Property, Plant and Equipment are capitalized. Property,
Plant and Equipment which are not ready for intended use as on the date of Balance Sheet are disclosed as
'Capital Work-In-Progress'.
ii) Subsequent costs
Subsequent expenditure is recognized as an increase in the carrying amount of the asset when it is probable
that future economic benefits deriving from the cost incurred will flow to the enterprise and the cost of the
item can be measured reliably.
The cost of replacing part of an item of property, plant and equipment is recognized in the carrying amount of
the item if it is probable that the future economic benefits embodied within the part will flow to the Company
and its cost can be measured reliably. The carrying amount of the replaced part is derecognized. The costs
of the day-to-day servicing of Property, Plant and Equipment are recognized in profit or loss as incurred.
iii) De-recognition
Property, Plant and Equipment are derecognized when no future economic benefits are expected from
their use or upon their disposal. Gains and losses on disposal of an item of property, plant and equipment
are determined by comparing the proceeds from disposal with the carrying amount of property, plant and
equipment, and are recognized in the statement of profit and loss.
iv) Depreciation
The Company has changed its method of depreciation from the Straight Line Method (SLM) to the Written
Down Value (WDV) method with effect from April 1, 2025, being the beginning of the financial year 2025-26.
Depreciation is recognized in statement of profit or loss on a written down value over the estimated useful
life of each item of Property, Plant and Equipment.
Depreciation on additions to/deductions from property, plant and equipment during the year is charged on
pro-rata basis from/up to the date on which the asset is available for use/disposed.
2.06 Capital work-in-progress
The cost of self-constructed assets includes the cost of materials & direct labour, borrowing costs, any other costs
directly attributable to bring the assets to the location and condition necessary for it to be capable of operating in
the manner intended by management.
2.07 Intangible assets
i) Initial recognition and measurement
An intangible asset is recognized if and only if it is probable that the expected 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 that are acquired by the Company, which have infinite useful lives, are recognized at cost
less accumulated impairment losses, if any. Cost includes any directly attributable incidental expenses
necessary to make the assets ready for its intended use.
(a) Intangible assets acquired separately
Intangible assets with finite useful lives that are acquired separately are carried at cost less
accumulated amortisation and accumulated impairment losses. Amortisation is recognised on
a straight-line basis over their estimated useful lives. The estimated useful life and amortisation
method are reviewed at the end of each reporting period, with the effect of any changes in estimate
being accounted for on a prospective basis.
Intangible assets with indefinite useful lives are carried at cost less accumulated impairment losses.
(b) Intangible assets acquired in a business combination
Intangible assets other than goodwill acquired in a business combination are initially recognised at
their fair value at the acquisition date (which is regarded as their cost).
Subsequent to initial recognition, such intangible assets acquired in a business combination are
reported at cost less accumulated amortisation and accumulated impairment losses, on the same
basis as intangible assets that are acquired separate
ii) Subsequent costs
Subsequent expenditure is recognized as an increase in the carrying amount of the asset when it is probable
that future economic benefits deriving from the cost incurred will flow to the enterprise and the cost of the
item can be measured reliably.
iii) De-recognition
An intangible asset is derecognized when no future economic benefits are expected from their use or upon
their disposal. Gains and losses on disposal of an item of intangible assets are determined by comparing the
proceeds from disposal with the carrying amount of intangible assets and are recognized in the statement
of profit and loss.
(iv) Useful lives of Intangible Assets
Estimated useful lives of the Intangible Assets are as follows:
Type of Asset Useful Life
Non-Compete Fees. 10 years
(v) Amortization
Amortization is made on straight line method over a period of legal right to use
2.08 Impairment of property, plant and equipment, other intangible assets
Assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount
may not be recoverable and impairment loss is recognised for the amount by which the asset's carrying amount
exceeds its recoverable amount. The recoverable amount is higher of an asset's fair value less costs of disposal and
value in use. For the purpose of assessing impairment, assets are grouped at the lowest levels for which there are
separately identifiable cash inflows which are largely independent of the cash inflows from other assets or Company
of assets (cash generating units). If at the balance sheet date, there is an indication that a previously assessed
impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable
amount subject to a maximum of depreciated historical cost and the same is accordingly reversed in the statement
of profit and loss.
2.09 Investment Property
Investment properties are measured at cost less accumulated depreciation and impairment losses, if any. Depreciation
on building is provided over the estimated useful lives as specified in Schedule II to the Companies Act, 2013.
2.10 Inventories
Inventories are valued at the lower of cost or net realisable value. The cost of inventories is based on the first-in¬
first-out formula, and includes expenditure incurred in acquiring the inventories, production or conversion costs
and other costs incurred in bringing them to their present location and condition.
Cost incurred in bringing each product to its present location and conditions are accounted for as follows:
• Raw materials: Purchase cost on first-in-first out basis
• Finished goods and work in progress: Cost of direct materials and labour and a proportion of manufacturing
overheads based on the normal operating capacity, but excluding borrowing costs
• Inventory related to real estate division: Valued at cost or Net Realisable Value whichever is lower
Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of
completion and selling expenses Raw materials, components and other supplies held for use in production of finished
goods are not written down below cost except in cases where material prices have declined and it is estimated that
the cost of the finished products will exceed their net realisable value.
Obsolete, slow moving, defective inventories, shortage/ excess are identified at the time of physical verification of
inventories and wherever necessary provision/ adjustment is made for such inventories.
2.11 Cash and Cash Equivalents
It includes cash on hand, deposits held at call with banks and other short-term deposits which are readily convertible
into known amounts of cash, are subject to an insignificant risk of change in value and have original maturities of
less than three months. These balances with banks are unrestricted for withdrawal and usage.
2.12 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.
i) Financial assets:
Financial assets are recognised when the Company becomes a party to the contractual provisions of the
instrument.
a) Initial recognition and measurement
All financial assets are recognized initially at fair value plus, 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
Financial assets are subsequently classified and measured at:
• Financial assets at amortised cost
• Financial assets at fair value through profit and loss (FVTPL)
• Financial assets at fair value through other comprehensive income (FVTOCI).
c) Equity Instruments:
All investments in equity instruments in subsidiary entity and in associate entity are measured at
cost.
All investments in equity instruments in entities other than subsidiaries and joint ventures are
measured at fair value. Equity instruments if held for trading are classified as at FVTPL. For all other
equity instruments, the Company decides to classify the same either at FVTOCI or FVTPL. The
Company makes such election on an instrument by instrument basis. The classification is made on
initial recognition and is irrevocable.
If the company decides to classify an equity instrument as at FVTOCI, then all fair value changes on
the instruments, excluding dividends, are recognized in the OCI. There is no recycling of the amounts
from OCI to P&L, even on sale of investment as the company transfers cumulative gain or loss within
the equity.
Equity instruments if classified as FVTPL category are measured at fair value with all changes
recognized in the statement of profit and loss.
d) De-recognition
A financial asset (or, where applicable, a part of a financial asset or part of a Company of similar
financial assets) is primarily derecognized (i.e. removed from the Company's balance sheet) when:
• The contractual rights to receive cash flows from the asset have expired, or
• The Company has transferred its contractual rights to receive cash flows from the asset.
e) Impairment of Financial Asset
Expected credit losses are recognized for all financial assets subsequent to initial recognition in
Statement of Profit and loss.
For recognition of impairment loss on financial assets other than Trade receivables, the company
determines whether there has been a significant increase in the credit risk since initial recognition. If
credit risk has not increased significantly, 12-month ECL is used to provide impairment loss. However,
If credit risk is increased significantly, lifetime ECL is used.
f) Income on Financial Asset
- Dividend income from investments is recognised when the shareholder's right to receive payment
has been established.
Interest income is accrued on a time basis, by reference to the principal outstanding and at the
effective interest rate applicable, which is the rate that exactly discounts estimated future cash
receipts through the expected life of the financial asset to that asset's net carrying amount on initial
recognition.
Delayed payment charges are recognised on collection or earlier when there is reasonable certainty
to expect ultimate collection.
If, in a subsequent period, credit quality of the instrument improves to such extent that there is
no longer a significant increase in credit risk since initial recognition, then the entity reverts to
recognising impairment loss allowance based on 12- Month ECL.
For trade receivables Company applies 'simplified approach' which requires expected lifetime losses
to be recognised from initial recognition of the receivables. The Company uses historical default rates
to determine impairment loss on the portfolio of trade receivables. At every reporting date these
historical default rates are reviewed and changes in the forward looking estimates are analysed.
ii) Financial liabilities
a) Initial recognition and measurement
All financial liabilities are recognized at fair value and in case of loans, net of directly attributable
cost. Fees of recurring nature are directly recognised in the Statement of Profit and Loss as finance
cost.
b) Subsequent measurement
Financial liabilities are carried at amortized cost using the effective interest method.
Amortized cost is calculated by taking into account any discount or premium on acquisition
and any material transaction that are any integral part of the EIR. Trade and other payables
maturing within one year from the balance sheet date are carried at transaction value and
the carrying amounts approximate fair value due to the short maturity of these instruments.
Financial liabilities carried at fair value through profit or loss are measured at fair value with all
changes in fair value recognised in the Statement of Profit and Loss.
c) De-recognition
A financial liability is derecognized when the obligation under the liability is discharged or cancelled
or expires. When an existing financial liability is replaced by another from the same lender on
substantially different terms, or the terms of an existing liability are substantially modified, such an
exchange or modification is treated as the de-recognition of the original liability and the recognition
of a new liability. The difference in the respective carrying amounts is recognized in the statement of
profit or loss.
2.13 Offsetting of Financial Instruments
Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a
currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis
or realise the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on
future events and must be enforceable in the normal course of business and in the event of default, insolvency or
bankruptcy of the group or the counterparty.
2.14 Fair value measurement
The Company measures financial instruments, such as, derivatives 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 principal or the most advantageous market must be accessible by the company. 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, assuming that market participants act in their economic best interest. A fair value measurement of a non¬
financial asset takes into account 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 measure fair value, maximizing the use of relevant observable inputs and minimizing
the use of unobservable inputs. All assets and liabilities for which fair value is measured or disclosed in the financial
statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that
is significant to the fair value measurement as a whole:
Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities
Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement
is directly or Indirectly observable
Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement
is unobservable.
For assets and liabilities that are recognized in the financial statements on a recurring basis, the company
determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization (based
on the lowest level input that is signify cant to the fair value measurement as a whole) at the end of each reporting
period. The Company determines the policies and procedures for both recurring fair value measurement, such as
derivative instruments and unquoted financial assets measured at fair value, and for non-recurring measurement,
such as assets held for distribution in discontinued operations.
2.15 Impairment of Financial Assets
All financial assets except for those at FVTPL are subject to review for impairment at least at each reporting date to
identify whether there is any objective evidence that a financial asset or a company of financial assets is impaired.
Different criteria to determine impairment are applied for each category of financial assets.
In accordance with Ind-AS 109, the company applies expected credit loss (ECL) model for measurement and
recognition of impairment loss for financial assets carried at amortised cost.
ECL is the weighted average of difference between all contractual cash flows that are due to the company in
accordance with the contract and all the cash flows that the company expects to receive, discounted at the original
effective interest rate, with the respective risks of default occurring as the weights. When estimating the cash flows,
the company is required to consider -
- All contractual terms of the financial assets (including prepayment and extension) over the expected life of
the assets.
- Cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual
terms.
- To measure the expected credit losses, trade receivables have been grouped based on shared credit risk
characteristics and the days past due. The expected credit loss provision for trade receivables is determined
as follows:
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