NOTE - 1B - SIGNIFICANTACCOUNTING POLICIES
1B.1 Basis of Preparation

The Financial Statements have been prepared in accordance with the accounting principles generally accepted in India including
Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Companies Act, 2013 (the "Act") read with rule 3 of the
Companies (Indian Accounting Standards) Rules, 2015 as amended and other relevant provisions of the Act.

Accordingly, the Company has prepared these Financial Statements which comprise the Balance Sheet as at 31 March, 2025, the
Statement of Profit and Loss (including Other Comprehensive Income) for the year ended 31 March 2025, the Statement of
Changes in Equity and the Statement of Cash Flows for the year ended 31 March 2025, and accounting policies and other
explanatory information (together hereinafter referred to as ‘the Financial Statements’).

1B.2 Basis of Measurement

The financial statements have been prepared on a going concern basis using historical cost convention and on accrual method of
accounting, except for the following assets and liabilities which have been measured at fair value:

• Plan assets under defined benefit plans - measured at fair value.

1B.3 Functional and Presentation Currency

These financial statements are presented in Indian Rupees (Rs.), which is the Company's functional currency.

1B.4 Summary of Significant Accounting Policies
1B.4.1 Property. Plant and Equipment (PPE)

(a) Property, Plant and Equipment are stated at cost, net of recoverable taxes, trade discounts and rebates less accumulated
depreciation and impairment losses, if any. Such cost includes purchase price, borrowing cost and any other cost directly
attributable to bringing the assets to its working condition for its intended use, net charges on foreign exchange contracts and
adjustments arising from exchange rate variations attributable to the assets.

(b) Subsequent costs are included in the asset's carrying amount or recognized as a separate asset, as appropriate, only when it
is probable that future economic benefits associated with the item will flow to the entity and the cost can be measured reliably.
In the carrying amount of an item of PPE, the cost of replacing the part of such an item is recognized when that cost is incurred
if the recognition criteria are met. The carrying amount of those parts that are replaced is derecognized in accordance with the
derecognition principles.

(c) Depreciation on Property, Plant and Equipment is provided using written down value method, except on Land (held as
investment property), on which no depreciation is provided. Depreciation provided is based on useful life of the assets as
prescribed in Schedule II to the Companies Act, 2013 . If, significant parts of an item of Property, Plant and Equipment have
different useful lives, then they are accounted and depreciated for as separate items (major components) of Property, Plant
and Equipment.

(d) The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial
year end and adjusted prospectively, if appropriate.

(e) Gains or losses arising from derecognition of a property, plant and equipment are measured as the difference between the net
disposal proceeds and the carrying amount of the asset and are recognized in the Statement of Profit and Loss when the asset
is derecognised.

(f) Spare parts procured along with the Plant & Machinery or subsequently which meet the recognition criteria are capitalized
and added in the carrying amount of such item. The carrying amount of those spare parts that are replaced is derecognized
when no future economic benefits are expected from their use or upon disposal. Other machinery spares are treated as “stores
& spares” forming part of the inventory.

The Company as a lessee

(a) The Company’s lease asset classes primarily consist of leases for land. The Company assesses whether a contract contains
a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an
identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control
the use of an identified asset, the Company assesses whether :

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

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

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

(b) Ind AS 116 requires lessees to determine the lease term as the non-cancellable period of a lease adjusted with any option to
extend or terminate the lease, if the use of such option is reasonably certain. The Company makes an assessment on the
expected lease term on a lease-by-lease basis and thereby assesses whether it is reasonably certain that any options to
extend or terminate the contract will be exercised. In evaluating the lease term, the Company considers factors such as any
significant leasehold improvements undertaken over the lease term, costs relating to the termination of the lease and the
importance of the underlying asset to Company’s operations taking into account the location of the underlying asset and the
availability of suitable alternatives. The lease term in future periods is reassessed to ensure that the lease term reflects the
current economic circumstances. After considering current and future economic conditions, the Company has concluded
that no changes are required to lease period relating to the existing lease contracts.

(c) At the date of commencement of the lease, the Company recognizes a Right-of-Use (ROU) asset and a corresponding lease
liability for all lease arrangements in which it is a lessee, except for leases with a term of 12 months or less (short-term leases)
and low value leases. For these short term and low-value leases, the Company recognizes the lease payments as an operating
expense on a straight-line basis over the term of the lease.

(d) The lease arrangements includes the options to extend or terminate the lease before the end of the lease term. ROU assets and
lease liabilities includes these options when it is reasonably certain that they will be exercised.

(e) The ROU assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted for any lease
payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They
are subsequently measured at cost less accumulated depreciation and impairment losses.

(f) ROU assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful
life of the underlying asset. ROU assets are evaluated for recoverability whenever events or changes in circumstances
indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount
(i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the
asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable
amount is determined for the Cash Generating Unit (CGU) to which the asset belongs.

(g) The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease payments
are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates
in the country of domicile of these leases. Lease liabilities are remeasured with a corresponding adjustment to the related
ROU asset if the Company changes its assessment of whether it will exercise an extension or a termination option.

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

The Company as a lessor

(a) The Company has not entered into any lease contract during the year in the capacity of "Lessor".

1B.4.3 Capital Work-in-Progress

(a) Expenditure incurred on assets under construction (including a project) is carried at cost under 'Capital Work-in-Progress'.
Such costs comprises purchase price of asset including import duties and non-refundable taxes and costs that are directly
attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner
intended by management and after deducting trade discounts and rebates.

(c) Capital Expenditure incurred for creation of facilities, over which the Company does not have control but the creation of which is

essential principally for construction of the project is capitalized and carried under 'Capital Work-in-Progress' and subsequently

allocated on systematic basis over major assets, other than land and infrastructure facilities, on commissioning of projects,

keeping in view the “attributability” and the “Unit of Measure” concepts defined in Ind AS 16- “Property, Plant & Equipment”.

Expenditure of such nature incurred after completion of the project, is charged to Statement of Profit and Loss.

(a) Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a
substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the asset. A qualifying
asset is one that necessarily takes substantial period of time to get ready for its intended use.

(b) All other borrowing costs are charged to the Statement of Profit and Loss for the period for which they are incurred.

1B.4.5 Inventories

(a) Items of inventories are measured at lower of cost and net realisable value after providing for obsolescence, if any. Cost of
inventories comprises of cost of purchase, cost of conversion and other costs including manufacturing overheads net of
recoverable taxes incurred in bringing them to their respective present location and condition.

(b) Cost of stores and spares, packing materials, trading products and other products are determined at Cost on FIFO basis

1B.4.6 Impairment of Non-Financial Assets - Property, Plant and Equipment

(a) The Company assesses at each reporting date as to whether there is any indication that any Property, Plant and Equipment
and Intangible Assets or group of Assets, called Cash Generating Units (CGU) may be impaired. If any such indication exists,
the recoverable amount of an asset or CGU is estimated to determine the extent of impairment, if any. When it is not possible
to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the CGU to
which the asset belongs.

(b) An impairment loss is recognised in the Statement of Profit and Loss to the extent, asset’s carrying amount exceeds its
recoverable amount. The recoverable amount is higher of an asset’s fair value less cost of disposal and value in use. Value in
use is based on the estimated future cash flows, discounted to their present value using pre-tax discount rate that reflects
current market assessments of the time value of money and risk specific to the assets.

(c) The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recover¬
able amount.

1B.4.7 Assets Held For Sale

The assets are classified as held for sale if their carrying amount is intended to be recovered principally through sale rather than

through continuing use. The condition for classification of held for sale is met when the asset is available for immediate sale and

the same is highly probable of being completed within one year from the date of classification under the head 'Assets Held for

Sale'. The Company, is not holding any asset which is to be classified as 'Assets Held For Sale'.