B. Significant Accounting Policies
B.1 Basis of Preparation and Presentation
B.1.1 Statement of Compliance

The financial statements comply in all material aspects with Indian Accounting Standards (Ind
AS) notified under Section 133 of the Companies Act, 2013 read with Rule 3 of the Companies
(Indian Accounting Standards) Rules, 2015 and the Companies (Indian Accounting Standards)
Amendment Rules, 2016. The financial statements up to year ended March 31, 2025 were
prepared in accordance with the accounting standards notified under Companies (Accounting
Standard) Rules, 2006 (as amended) and other relevant provisions of the Act. Previous period
figures in the financial statements have been restated in Ind AS.

B.1.2 Basis of Measurement

The standalone financial statements have been prepared on a historical cost basis, on the
accrual basis of accounting except for certain financial assets and liabilities measured at fair
value at the end of each reporting period, as explained in relevant schedule notes.

B.1.3 Functional and presentation currency

Indian rupee is the functional and presentation currency.

B.1.4 Use of estimates

The preparation of the financial statements in conformity with Ind AS requires management to
make estimates, judgments and assumptions.

These estimates, judgments and assumptions affect the application of accounting policies and
the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities
at the date of the financial statements and reported amounts of revenues and expenses during
the period.

Accounting estimates could change from period to period. Actual results could differ from those
estimates. Appropriate changes in estimates are made as management becomes aware of
changes in circumstances surrounding the estimates. Changes in estimates are reflected in the
financial statements in the period in which changes are made and, if material, their effects are
disclosed in the notes to the financial statements.

Application of accounting policies that require critical accounting estimates involving complex
and subjective judgments and the use of assumptions in these financial statements are:

- Useful lives of Property, plant and equipment

- Valuation of financial instruments

- Provisions and contingencies

- Income tax and deferred tax

- Measurement of defined employee benefit obligations

- Export Incentive

B.2 Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to
the Company and the revenue can be reliably measured. Revenue is measured at the fair value
of the consideration received or receivable.

B.2.1 Sale of Goods

Revenue from sale of goods is recognized when the Company transfers all significant risks and
rewards of ownership to the buyer, while the Company retains neither continuing managerial
involvement nor effective control over the products sold.

Revenue is exclusive of excise duty and is reduced for estimated customer returns,
commissions, rebates and discounts and other similar allowances.

B.2.2 Other Operating Revenue

Other Operating Revenue comprises of income from ancillary activities incidental to the
operations of the company and is recognised when the right to receive the income is
established as per the terms of contracts.

B.2.3 Dividend and Interest income

Dividend income is recognized when the right to receive payment has been established
(provided that it is probable that the economic benefits will flow to the Company and the
revenue can be measured reliably).

Interest income is accrued on a time basis, by reference to the principal outstanding and at the
effective interest rate applicable (provided that it is probable that the economic benefits will
flow to the Company and the revenue can be measured reliably).

B.3 Borrowing costs

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, are added to the cost of those assets, until such time as the assets are
substantially ready for their intended use. All other borrowing costs are recognised in profit or
loss in the period in which they are incurred.

B.4 Income Taxes

Income tax expense represents the sum of the tax currently payable and deferred tax. Current
and deferred tax are recognised in profit or loss, except when they relate to items that are
recognised in other comprehensive income or directly in equity, in which case, the current and
deferred tax are also recognised in other comprehensive income or directly in equity
respectively.

Current tax:

Current tax is determined on taxable profits for the year chargeable to tax in accordance with
the applicable tax rates and the provisions of the Income Tax Act, 1961 including other
applicable tax laws that have been enacted or substantively enacted.

Provisions for current income taxes are presented in the balance sheet after off-setting advance
taxes paid and TDS/TCS receivables.

Minimum Alternate Tax (MAT) credit is recognized as an asset only when and to the extent
there is convincing evidence that the Company will pay normal income tax during the specified
period. In the year in which the MAT credit becomes eligible to be recognized as an asset in
accordance with the recommendations contained in Guidance Note issued by the Institute of
Chartered Accountants of India. MAT Credit Entitlement, is classified as unused tax credits
under deferred tax by way of a credit to the statement of profit and loss.

Deferred tax:

Deferred tax is recognised on temporary differences between the carrying amounts of assets
and liabilities in the financial statements and the corresponding tax bases used in the
computation of taxable profit. Deferred tax liabilities are generally 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. Deferred tax asset is
recognised for the carry forward of unused tax losses and unused tax credits to the extent that
it is probable that future taxable profit will be available against which the unused tax losses and
unused tax credits can be utilised.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and
reduced to the extent that it is no longer probable that sufficient taxable profits will be available
to allow all or part of the asset to be recovered.

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.

The measurement of deferred tax liabilities and assets reflects the tax consequences that would
follow from the manner in which the Company expects, at the end of the reporting period, to
recover or settle the carrying amount of its assets and liabilities.

B.5 Property, Plant and Equipment
Cost:

Property, plant and equipment are stated at cost, net of accumulated depreciation and
accumulated impairment losses, if any.

The cost comprises the purchase price, borrowing cost if capitalization criteria are met and
directly attributable cost of bringing the asset to its working condition for its intended use. Any
trade discounts and rebates are deducted in arriving at the purchase price.

Subsequent expenditures relating to property, plant and equipment is capitalized only when it
is probable that future economic benefits associated with these will flow to the company and
the cost of the item can be measured reliably.

All other expenses on existing fixed assets, including day-to-day repair and maintenance
expenditure and cost of replacing parts, are charged to the statement of profit and loss for the
period during which such expenses are incurred.

Properties in the course of construction for production, supply or administrative purposes are
carried at cost, less any recognised impairment loss. Cost includes professional fees and, for
qualifying assets, borrowing costs capitalised in accordance with the Company's accounting
policy. Such properties are classified to the appropriate categories of property, plant and
equipment when completed and ready for intended use. Depreciation of these assets, on the
same basis as other property assets, commences when the assets are ready for their intended
use.

Depreciation methods, estimated useful lives and residual value

Depreciation on property, plant and equipment is provided using the written down method
based on the useful life of the assets as estimated by the management and is charged to the
Statement of Profit and Loss as per the requirements of Schedule II of the Act. The estimate of
the useful life of the assets has been assessed based on technical advice which considered the
nature of the asset, the usage of the asset, expected physical wear and tear, the operating
conditions of the asset, anticipated technological changes, manufacturers warranties and
maintenance support, etc.

Depreciation on items of property, plant and equipment acquired / disposed off during the year
is provided on pro-rata basis with reference to the date of addition / disposal. Cost of lease-hold
land is amortized equally over the period of lease.

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.

De-recognition:

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 gains or
losses arising from derecognition of fixed assets are measured as the difference between the
net disposal proceeds and the carrying amount of the asset at the time of disposal and are
recognized in the statement of profit and loss.

B.6 Impairment Losses

At the end of each reporting period, the Company determines whether there is any indication
that its assets (property, plant and equipment, intangible assets and investments in equity
instruments in subsidiaries carried at cost) have suffered an impairment loss with reference to
their carrying amounts. If any indication of impairment exists, the recoverable amount (i.e.
higher of the fair value less costs of disposal and value in use) of such assets is estimated and
impairment is recognised, if the carrying amount exceeds the recoverable amount.

When it is not possible to estimate the recoverable amount of an individual asset, the Company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.

When an impairment loss subsequently reverses, the carrying amount of the asset (or cash¬
generating unit) is increased to the revised estimate of its recoverable amount, but so that the
increased carrying amount does not exceed the carrying amount that would have been
determined had no impairment loss been recognised for the asset (or cash-generating unit) in
prior years. A reversal of an impairment loss is recognised immediately in profit or loss.

B.7 Inventories

Inventories are taken as verified, valued and certified by the management. Inventories are
stated at lower of cost and net realisable value.

Cost of inventories is determined as follows:

Shares - At lower of cost or net realizable value