2. | MATERIAL ACCOUNTING POLICIES

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

2.1 Basis of preparation and presentation

a) Compliance with Ind AS

The Standalone financial statements of the
Company have been prepared in accordance
with Indian Accounting Standards (Ind
AS) notified under the Companies (Indian
Accounting Standards) Rules, 2015 (as
amended from time to time) notified under
section 133 of the Companies Act, 2013
and presentation requirements of Division
II of Schedule III to the Companies Act,
2013, (Ind AS compliant Schedule III), as
applicable to the Company.

The Standalone financial statements for
the year ended 31st March, 2025 were
approved for issue by the Company's Board
of Directors on 22nd May, 2025.

b) Historical cost conversion

The Standalone financial statements
have been prepared on a historical cost
basis, except for the following assets and
liabilities which have been measured at fair
value or revalued amount:

i) Certain financial assets and liabilities
measured at fair value (refer
accounting policy regarding financial
instruments);

ii) Net defined benefit (asset) / liability
that are measured at fair value of plan
assets less present value of defined
benefit obligations.

iii) Share-based payments

c) Current and non-current classification of
assets and liabilities

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
(Division II) to the Companies Act, 2013.
Based on the nature of products and the
time between the acquisition of assets
for processing and their realisation in
cash and cash equivalents, the Company
has determined its operating cycle as 12
months.

d) New and amendments standards adopted
by the Company

Ministry of Corporate Affairs ("MCA")
notifies new standards or amendments to
the existing standards under Companies
(Indian Accounting Standards) Rules as
issued from time to time. For the year
ended 31st March, 2025, MCA has notified
amendments to the leases standard
(IND AS 116) for sale-and-leaseback
transactions. The amendments impact how
a seller-lessee accounts for variable lease
payments that arise in a sale-and-leaseback
transaction, in situations, where some or
all the lease payments are variable lease
payments, in particular, where the variability
does not relate to an index or a rate.

This amendment does not have any
material impact on the amounts recognised
in the prior periods and are not expected
to significantly affect the current or future
periods.

2.2 Revenue recognition:

Sales are recognised when control of the
products has been transferred to the customer,
being when the products are delivered to the
customer or its authorised representative and
there is no unfulfilled obligation that could affect
the customer's acceptance of the products.
Revenue is measured at the transaction price
of the consideration received or receivable, net
of returns, trade discounts, and volume rebates.
Revenue also excludes taxes collected from
customer.

The sales made by the Company may include
transport arrangements from third parties. In
such cases, revenue for the supply of such third-
party transport arrangements are recorded at
gross or net basis depending on whether the
Company is acting as the principal or as an
agent of the customer. The Company recognises
revenue for the gross amount of consideration
when it is acting as a principal and at net amount
of consideration when it is acting as an agent.

A receivable is recognised when the goods are
delivered as this is the point in time that the
consideration is unconditional because only the
passage of time is required before the payment
is due as per agreed terms and conditions with
the buyers.

2.3 Trade receivables

Trade receivables are amounts due from
customers for goods and services performed in
the ordinary course of business and reflect the
Company's unconditional right to consideration
(that is, payment is due only on the passage of
time.)

Trade receivables are recognised initially at
the transaction price as they do not contain
significant financing components. The Company
holds the trade receivables with the objective
of collecting the contractual cash flows and
therefore measures them subsequently at
amortised cost using the effective interest
method, less loss allowance.

2.4 Inventories

Inventories are valued at cost or net realisable
value whichever is lower after providing for cost
of obsolescence. Cost is determined on a First-
in-first-out formula.

Raw materials are valued at cost of purchase net
of duties (credit availed w.r.t taxes and duties)
and includes all expenses incurred in bringing the
materials to location of use. However, materials
and other items held for use in the production
of inventories are not written down below cost
if the finished products in which they will be
incorporated are expected to be sold at or above
cost.

Work-in-process (WIP) and finished goods
include conversion costs in addition to the landed
cost of raw materials. WIP includes certain
inventories used in the production process which
has life of more than one year. These inventories
are amortised over its useful life and included as
part of cost of production.

Finished goods are valued at lower of cost and
net realisable value. The net realisable value of
the finished goods is determined with reference
to the selling prices of related finished goods.

Cost of finished goods and work-in-progress
comprises cost of raw material and appropriate
fixed production overheads which are allocated
on the basis of normal capacity of production
facilities and variable production overheads on
the basis of actual production of material and
after deduction of the realisable value of the by¬
product.

Components, Stores, and Spares cost includes
cost of purchase and other costs incurred in
bringing the inventories to their present location
and condition.

Net realisable value is the estimated selling
price in the ordinary course of business, less
estimated costs of completion and estimated
costs necessary to make the sale. Obsolete
and slow-moving inventories are identified and
wherever necessary, such inventories are written
off/provided during the year.

2.5 Property, plant and equipment

Freehold land is carried at historical cost. All
other items of property, plant and equipment
are stated at historical cost less depreciation.
Depreciation method and estimated useful lives

Depreciation on tangible assets is provided
on the straight-line method on pro-rata basis,

over the useful lives of assets as prescribed in
Schedule - II of the Companies Act, 2013 which
is as follows:

The residual values of the assets are not more
than 5% of the original cost of the asset.

Depreciation method, useful lives and residual
values are reviewed at each financial year-end
and adjusted if appropriate.

• Recognition and measurement

The cost of an item of property, plant and
equipment shall be recognised as an asset
if, and only if it is probable that future
economic benefits associated with the item
will flow to the Company and the cost of the
item can be measured reliably.

Property, plant and equipments are carried
at cost which includes capitalised borrowing
costs, less accumulated depreciation and
impairment loss, if any. Items of property,
plant and equipment are measured
at cost of acquisition or construction
less accumulated depreciation and / or
accumulated impairment losses, if any.

The cost of an item of property, plant and
equipment comprises its purchase price,
including import duties and other non¬
refundable taxes or levies and any directly
attributable cost of bringing the asset to
its working condition for its intended use
and estimated costs of dismantling and
removing the item and restoring the site
on which it is located. Any trade discounts
and rebates are deducted in arriving at the
purchase price. Borrowing costs directly
attributable to the construction of a
qualifying asset are capitalised as part of
the cost. The cost of a self-constructed item
of property, plant and equipment comprises
the cost of materials and direct labour, any
other costs directly attributable to bringing

the item to working condition for its intended
use, and estimated costs of dismantling
and removing the item and restoring the
site on which it is located. The Company
identifies and determines cost of each
component/ part of the asset separately,
if the component/ part has a cost which is
significant to the total cost of the asset and
has useful life that is materially different
from that of the remaining asset. These
components are depreciated separately
over their useful lives; the remaining
components are depreciated over the life of
the principal asset.

Property, plant and equipment under
construction are disclosed as capital work-
in-progress.

• Subsequent costs

The cost of replacing a part of an item of
property, plant and equipment is recognised
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 derecognised. The costs of the
day-to-day servicing of property, plant and
equipment are recognised in the Statement
of Profit and Loss as incurred.

• Disposal

An item of property, plant and equipment
is derecognised upon disposal or when no
future benefits are expected from its use or
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 recognised net within other income/
expenses in the Statement of Profit and
Loss.

2.6 Other intangible assets:

The useful lives of intangible assets are assessed
based on management estimates.

Intangible assets i.e., computer software is
amortised on a straight-line basis over the period
of expected future benefits commencing from
the date the asset is available for its use.

The management has estimated the useful life
for software & licenses as following,

Amortisation method, useful lives and residual
values are reviewed at the end of each financial
year and adjusted if appropriate.

See note 3.3 below for remaining relevant
accounting policies.

2.7 Employee Share-based Payments

Employees of the Company receive remuneration
in the form of share based payment transactions,
whereby employees render services as
consideration for equity instruments (equity-
settled transactions).

The cost of equity-settled transactions is
determined by the fair value at the date when
the grant is made using an appropriate valuation
model.

That cost is recognised, together with a
corresponding increase in Employee Stock
Option (ESOP) Reserve in equity, over the
period in which the performance and/or service
conditions are fulfilled in employee benefits
expense. The cumulative expense recognised
for equity-settled transactions at each reporting
date until the vesting date reflects the extent
to which the vesting period has expired and
the Company's best estimate of the number of
equity instruments that will ultimately vest. The
expense or credit for a period represents the
movement in cumulative expense recognised
as at the beginning and end of that period and is
recognised in employee benefits expense.

The dilutive effect of outstanding options is
reflected as additional share dilution in the
computation of diluted earnings per share.

Expense relating to options granted to employees
of the subsidiaries under the Company's
Employee Stock Option plan, is charged for their
share of the ESOP cost by equity settlement.

2.8 Financial assets

Initial recognition and measurement

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. All financial assets are recognised initially
at fair value plus except for trade receivables
which are initially measured at transaction price,
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.

Subsequent measurement

For purposes of subsequent measurement,
financial assets are classified in one of the three
categories:

a) At amortised cost

b) At fair value through Other Comprehensive
Income ('FVTOCI')

c) At fair value through profit or loss ('FVTPL)

(a) Financial assets classified as measured at
amortised cost

A financial asset shall be measured at
amortised cost if both of the following
conditions are met:

- the financial asset is held within a
business model whose objective is to
hold financial assets in order to collect
contractual cash flows and

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

After initial measurement, such financial
assets are subsequently measured at
amortised cost using the effective interest
rate ('EIR') method, less impairment charge.
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 EIR amortisation is included in
finance expense/ (income) in the Statement
of Profit and Loss. The losses arising from
impairment are recognised in the Statement
of Profit and Loss. This category generally
applies to trade receivables, security and
other deposits receivable by the Company.

Interest income or expense is recognised
using the effective interest rate method.
The 'effective interest rate' is the rate that

exactly discounts estimated future cash
receipts or payments through the expected
life of the financial instrument to:

- the gross carrying amount of the
financial asset; or

- the amortised cost of the financial
liability.

(b) Financial assets classified as measured at
FVOCI

A financial asset is measured at fair value
through other comprehensive income if
it is held within a business model whose
objective is achieved by both collecting
contractual cash flows and selling financial
assets and the contractual terms of the
financial asset give rise on specified dates
to cash flows that are solely payments
of principal and interest on the principal
amount outstanding. Further, the Company
makes such election on an instrument-
by-instrument basis, for its investments
which are classified as equity instruments,
the subsequent changes in fair value are
recognised in other comprehensive income.
Movements in the carrying amount are taken
through OCI, except for the recognition of
impairment gains or losses and interest
revenue which are recognised in other
comprehensive income. When the financial
asset is derecognised, the cumulative gain
or loss previously recognised in OCI is
reclassified from equity to profit or loss and
recognised in other gains/ (losses). Interest
income from these financial assets is
included in other income using the effective
interest rate method.

(c) Financial assets classified as measured at
FVTPL

Assets that do not meet the criteria for
amortised cost or FVOCI are measured
at fair value through profit or loss. A gain
or loss on a mutual fund investment that
is subsequently measured at fair value
through profit or loss is recognised in profit
or loss and presented net in the Statement
of Profit and Loss within other gains/
(losses) in the period in which it arises.

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

De-recognition of financial asset

The Company derecognises a financial asset
when the contractual rights to the cash flows
from the financial asset expire, or it transfers the
rights to receive the contractual cash flows in a
transaction in which substantially all of the risks
and rewards of ownership of the financial asset
are transferred or in which the Company neither
transfers nor retains substantially all of the risks
and rewards of ownership and does not retain
control of the financial asset.

If the Company enters into transactions whereby
it transfers assets recognised on its Balance
Sheet but retains either all or substantially all of
the risks and rewards of the transferred assets,
the transferred assets are not derecognised.

Impairment of financial assets

The Company applies the expected credit loss
model for recognising impairment loss on
financial assets.

Expected credit loss is the difference between
the contractual cash flows and the cash flows
that the entity expects to receive discounted
using effective interest rate.

Loss allowances for trade receivables are
measured at an amount equal to lifetime
expected credit losses.

Lifetime expected credit losses are the
expected credit losses that result from all
possible default events over the expected life
of a financial instrument. Lifetime expected
credit loss is computed based on a provision
matrix which takes into account historical credit
loss experience adjusted for forward looking
information.

For other financial assets, expected credit loss is
measured at the amount equal to twelve months
expected credit loss unless there has been a
significant increase in credit risk from initial
recognition, in which case, those are measured
at lifetime expected credit loss.

Trade receivables are written off when there is no
reasonable expectation of recovery.

2.9 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,
to realise the assets and settle the liabilities
simultaneously.

2.10 Derivative financial instruments

The Company enters into certain derivative
contracts to hedge risks which are not
designated as hedges. The Company holds
derivative financial instruments to hedge its
foreign currency and interest rate risk exposures.
Embedded derivatives are separated from the
host contract and accounted for separately if the
host contract is not a financial asset and certain
criteria are met.

Derivatives are initially measured at fair value.
Subsequent to initial recognition, derivatives are
measured at fair value, and changes therein are
generally recognised in the Statement of Profit
and Loss.

iaJ other accounting policies

2A.1 Other income
Sale of electricity

Revenue from sale of solar electricity power is
recognised on a point in time basis when solar
electrical power is transmitted to Alternating
Current Distribution Board (ACDB).

Interest income

Interest income on financial assets at amortised
cost is calculated using the effective interest
method is recognised in the statement of profit
and loss as part of other income.

Dividends

Dividends are recognised in the Statement of
Profit and Loss only when the right to receive
payment is established, and it is probable that
the economic benefits associated with the
dividend will flow to the Company and that the
amount of the dividend can be measured reliably.

Export Incentive

Export incentives are accounted for on export of
goods if the entitlements can be estimated with
reasonable accuracy and conditions precedent
to claim is fulfilled.

2A.2 Impairments of non-financial assets:

The Company assesses at each balance sheet
date whether there is any indication that an asset
or cash generating unit (CGU) may be impaired.
If any such indication exists, the Company
estimates the recoverable amount of the asset.
The recoverable amount is the higher of an
asset's or CGU's fair value less costs of disposal
or its value in use. Where the carrying amount of
an asset or CGU exceeds its recoverable amount,
the asset is considered impaired and is written
down to its recoverable amount.

In assessing value in use, the estimated future
cash flows are discounted to their present value
using a pre- tax discount rate that reflects current
market assessments of the time value of money
and the risks specific to the asset. In determining
fair value less costs of disposal, recent market
transactions are considered.

An impairment loss is recognised if the
carrying amount of an asset or CGU exceeds
its recoverable amount. Impairment losses are
recognised in the Statement of Profit and Loss.

If at the balance sheet date there is an indication
that a previously assessed impairment loss no
longer exists, an impairment loss is reversed only
to the extent that the asset's carrying amount
does not exceed the carrying amount that would
have been determined, net of depreciation or
amortisation, if no impairment loss had been
recognised.

For the purpose of assessing the impairment,
assets are grouped at the lowest level for which
there are separately identifiable cashflows which
are largely independent of assets or group of
assets.

2A.3 Other intangible assets

• Recognition and measurement

Intangible assets are recognised when the
asset is identifiable, is within the control of
the Company, it is probable that the future
economic benefits that are attributable to
the asset will flow to the Company and cost
of the asset can be reliably measured.

Intangible assets acquired separately are
measured on initial recognition at cost.
Intangible assets acquired by the Company

that have finite useful lives are measured
at cost less accumulated amortisation
and any accumulated impairment losses.
Intangible assets with indefinite useful
lives are not amortised, but are tested for
impairment annually, either individually or at
the cash-generating unit level.

Expenditure on research activities is
recognised in the Statement of Profit and
Loss as incurred. Development expenditure
is capitalised only if the expenditure can be
measured reliably, the product or process
is technically and commercially feasible,
future economic benefits are probable,
and the Company intends to complete
development and to use or sell the asset.

Intangible assets which comprise of the
development expenditure incurred on
new product and expenditure incurred on
acquisition of user licenses for computer
software are recorded at their acquisition
price.

• Subsequent measurement

Subsequent expenditure is capitalised only
when it increases the future economic
benefits embodied in the specific asset to
which it relates.

Intangible assets are assessed for
impairment whenever there is an indication
that the intangible asset may be impaired.

• Disposal

Gains or losses arising from derecognition
of an intangible asset are measured as
the difference between the net disposal
proceeds and the carrying amount of the
asset and are recognised in the Statement
of Profit and Loss when the asset is
derecognised.

2A.4 Employee benefits:

Short-term employee benefits

The distinction between short term and long¬
term employee benefits is based on expected
timing of settlement rather than the employee's
entitlement benefits. Employee benefits payable
wholly within twelve months of rendering the
service are classified as short-term employee

benefits. Such benefits include salaries, wages,
bonus, short term compensated absences,
awards, ex-gratia, performance pay etc. and are
recognised in the period in which the employee
renders the related service. The undiscounted
amount of short-term employee benefits
expected to be paid in exchange for the services
rendered by employees is recognised during
the year. A liability is recognised for the amount
expected to be paid e.g., under short-term cash
bonus, if the Company has a present legal or
constructive obligation to pay this amount as a
result of past service provided by the employee,
and the amount of obligation can be estimated
reliably.

The liabilities for compensated absence 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 recognised 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.

Defined contribution plans

Contributions to the provident fund and
superannuation schemes which is defined
contribution scheme, are recognised as an
employee benefit expense in the Statement
of Profit and Loss in the period in which the
contribution is due. Contributions are made in
accordance with the rules of the statute and are
recognised as expenses when employees render
service entitling them to the contributions. The
Company has no obligation, other than the
contribution payable to the provident fund.

If the contribution payable to the scheme for
service received before the balance sheet date
exceeds the contribution already paid, the deficit
payable to the scheme is recognised as a liability
after deducting the contribution already paid.
If the contribution already paid exceeds the
contribution due for services received before the
balance sheet date, then excess is recognised
as an asset to the extent that the pre-payment
will lead to, for example, a reduction in future
payment or a cash refund.

Defined benefit plans

The employees' gratuity scheme is a defined
benefit plan which is administered by a trust
formed for this purpose through the group
schemes of Life Insurance Corporation of India
(LIC). The present value of the obligation under
such defined benefit plans is determined based
on actuarial valuation using the projected unit
credit method, which recognises each period
of service as giving rise to additional unit of
employee benefit entitlement and measures each
unit separately to build up the final obligation.

The obligation is measured at the present value
of the estimated future cash flows. The discount
rates used for determining the present value
of the obligation under defined benefit plans,
is based on the market yields on government
securities as at the reporting date, having
maturity periods approximating to the terms of
related obligations.

Remeasurements, 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 interest on the net defined benefit liability),
are recognised immediately in the Balance
Sheet with a corresponding debit or credit to
retained earnings through other comprehensive
income (OCI) in the period in which they occur.
Remeasurements are not reclassified to the
Statement of Profit and Loss in subsequent
periods.

In case of funded plans, the fair value of the
planned assets is reduced from the gross
obligation under the defined benefit plans, to
recognise the obligation on net basis.

When the benefits of the plan are changed or
when a plan is curtailed, the resulting change in
benefits that relates to past service or the gain or
loss on curtailment is recognised immediately in
the Statement of Profit and Loss. Net interest is
calculated by applying the discount rate to the net
defined benefit liability or asset. The Company
recognises gains/ losses on settlement of a
defined plan when the settlement occurs.

2A.5 Income taxes:

Income tax expense comprises current and
deferred tax. It is recognised in the Statement of
Profit and Loss except to the extent that it relates
to a business combination, or items recognised
directly in equity or in other comprehensive
income (OCI).

• Current tax

Current tax comprises the expected tax
payable or receivable on the taxable income
or loss for the year and any adjustment to
the tax payable or receivable in respect
of previous years. The amount of current
tax reflects the best estimate of the tax
amount expected to be paid or received
after considering the uncertainty, if any,
related to income taxes. Current 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 in the country
where the Company operates and generates
taxable income. Current tax assets and
liabilities are offset only if there is a legally
enforceable right to set it off the recognised
amounts and it is intended to realise the
asset and settle the liability on a net basis
or simultaneously.

• Deferred tax

Deferred tax is provided using the balance
sheet method on temporary differences
between the tax base of assets and
liabilities and their carrying amounts for
financial reporting purposes at the reporting
date.

- Temporary differences related
to investments in subsidiaries,
associates, and joint arrangements to

the extent that the Company is able
to control the timing of the reversal
of the temporary differences and it is
probable that they will not reverse in
the foreseeable future.

Deferred tax assets are recognised for
all deductible temporary differences,
the carry forward of unused tax credits
and any unused tax losses. Deferred
tax assets are recognised 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 (including
unabsorbed depreciation) can be
utilised, except:

- When the deferred tax asset relating
to the deductible temporary difference
arises from the initial recognition of an
asset or liability in a transaction that is
not a business combination and, at the
time of the transaction, affects neither
the accounting profit nor taxable profit
or loss.

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-assessed 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.

Deferred tax assets and liabilities are
measured at the tax rates that are expected
to apply in the year when the asset is realised
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 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.

Deferred tax relating to items recognised
outside profit or loss is recognised outside
profit or loss. Deferred tax items are
recognised in correlation to the underlying
transaction either in OCI or directly in equity.

2A.6 Earnings per share (EPS):

Basic EPS is calculated by dividing the profit
for the year attributable to equity holders of the
Company by the weighted average number of
equity shares outstanding during the financial
year, adjusted for bonus elements and stock
split in equity shares issued during the year and
excluding treasury shares. The weighted average
number of equity shares outstanding during the
period and for all periods presented is adjusted
for events, such as bonus shares and stock split,
other than the conversion of potential equity
shares that have changed the number of equity
shares outstanding, without a corresponding
change in resources.

Diluted EPS adjust the figures used in the
determination of basic EPS to consider.

• The after-income tax effect of interest
and other financing costs associated with
dilutive potential equity shares, and

• The weighted average number of additional
equity shares that would have been
outstanding assuming the conversion of all
dilutive potential equity shares.