2. Significant Material Accounting Policies

a) Statement of Compliance

The financial statements have been prepared in
accordance with Ind AS notified under Section 133 of
the Companies Act, 2013 read with the Companies
(Indian Accounting Standards) Rules, 2015.

b) Basis of Preparation of Financial Statements

This Financial Statements have been prepared on the
historical cost basis except for certain financial
instruments that are measured at fair values at the end
of each reporting period, as explained in the accounting
policies below. 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, regardless of whether that price is
directly observable or estimated using another
valuation technique. In estimating the fair value of an
asset or liability, the Company takes into account the
characteristics of the asset or liability if market
participants would take those characteristic into
account when pricing the asset or liability at the
measurement date.

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:

1) Level 1 - Quoted (unadjusted) market prices in
active markets for identical assets or liabilities.

2) Level 2 - Valuation techniques for which the lowest
level input that is significant to the fair value
measurement is directly or indirectly observable.

3) Level 3 - Valuation techniques for which the lowest
level input that is significant to the fair value
measurement is unobservable.

c) Rounding of Amounts

All amounts disclosed in the Standalone Financial
Statements and notes have been rounded off to the
nearest lakhs, except where otherwise indicated

d) Recent Accounti ng Prono uncement

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 March
31, 2025, MCA during the year has notified Ind AS - 117
Insurance Contracts and amendments to Ind AS 116 -
Leases, relating to sale and leaseback transactions,
applicable to the Company. The Company has reviewed
the new pronouncements and based on its evaluation

has determined that it does not have any significant
impact in its financial statements.

e) Use of Estimates and Judgements

The presentation of the Financial Statements are in
conformity with the Ind AS which requires the
management to make estimates, judgments and
assumptions that affect the reported amounts of assets
and liabilities, revenues and expenses and disclosure of
contingent liabilities. Such estimates and assumptions
are based on management's evaluation of relevant facts
and circumstances as on the date of Financial
Statements. The actual outcome may differ from these
estimates.

Estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to the accounting
estimates are recognized in the period in which the
estimates are revised and in any future periods
affected.

Key assumptions

1) Evaluation of recoverability of deferred tax
assets

Deferred tax assets are recognised for unused tax
losses to the extent that it is probable that taxable
profit will be available against which the losses can
be utilised. 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
together with future tax planning strategies.

2) Assets and obligations relating to employee
benefits

The cost of the defined benefit plans, compensated
absences and the present value of the defined
benefit obligations are based on actuarial
valuation using the projected unit credit method.
An actuarial valuation involves making various
assumptions that may differ from actual
developments in the future. These interalia include
the determination of the discount rate, future
salary increases and mortality rates. Due to the
complexities involved in the valuation and its long¬
term nature, a defined benefit obligation is highly
sensitive to changes in these assumptions. All
assumptions are reviewed at each reporting date.

3) Useful lives of Property, plant and equipment

The Company reviews the useful life of Property,
Plant and Equipment at the end of each reporting
period. This reassessment may result in change in
depreciation expense in future periods.

4) Impairment of Property, plant and equipment

For Property, plant and equipment and intangibles
an assessment is made at each reporting date to
determine whether there is an indication that the
carrying amount may not be recoverable or
previously recognised impairment losses no

longer exist or have decreased. If such indication
exists, the Company estimates the asset's or Cash
Generating Unit (CGU's) recoverable amount. A
previously recognised impairment loss is reversed
only if there has been a change in the assumptions
used to determine the asset's recoverable amount
since the last impairment loss was recognised.

5) Valuation of inventories

The Company estimates the net realisable value
(NRV) of its inventories by taking into account
estimated selling price, estimated cost of
completion, estimated costs necessary to make the
sale, obsolescence considering the past trend.
Inventories are written down to NRV where such
NRV is lower than their cost.

f) Inventories

Inventories include stock-in-trade and finished goods.
Inventories are stated at lower of cost on weighted
average basis and net realizable value. Stock-in-trade
includes cost of purchase and other costs incurred in
bringing the inventories to their present location and
condition. Finished goods include cost of raw
materials, cost of conversion and other costs incurred
in bringing the inventories to their present location and
condition. Net realizable value represents the
estimated selling price of inventories less all estimated
costs of completion and costs necessary to make the
sale.”

g) Cash and Cash Equivalents

The Company considers all highly liquid financial
instruments, which are readily convertible into known
amounts of cash that are subject to an insignificant risk
of change in value and having original maturities of
three months or less from the date of purchase, to be
cash equivalents.

h) Revenue Recognition

1) Revenue from contracts with customers

The Company derives revenues primarily from sale
of products and services. Revenue from sale of
goods is recognised net of returns and discounts.
Revenue is recognised upon transfer of control of
promised products or services to customers in an
amount that reflects the consideration the
Company expect to receive in exchange for those
products or services.

To recognise revenues, the Company applies the
following five step approach :

i. Identify the contract with customer;

ii. Identify the performance obligations in the
contract;

iii. Determine the transaction price;

iv. Allocate the transaction price to the
performance obligations in the contract; and

v. Recognise revenues when a performance
obligation is satisfied.

Revenue is measured based on the consideration
specified in a contract with a customer and
excludes amounts collected on behalf of third
parties.

The Company presents revenues net of indirect
taxes in its Statement of Profit and Loss.

Performance obligation may be satisfied over time
or at a point in time. Performance obligations
satisfied over time if any one of the following
criteria is met. In such cases, revenue is recognised
over time.

i. The customer simultaneously receives and
consumes the benefits provided by the
Company's performance; or

ii. The Company's performance creates or
enhances an asset that the customer controls
as the asset is created or enhanced; or

iii. The Company's performance does not create
an asset with an alternative use to the
Company and the Company has an
enforceable right to payment for performance
completed to date.

For performance obligations where one of the
above conditions are not met, revenue is
recognised at the point in time at which the
performance obligation is satisfied.

2) Interest Income

Interest income from financial assets is recognised
using the effective interest rate method

i) Property, Plant and Equipment

Property, Plant & Equipment are stated at acquisition
cost (i.e. fair value on the Appointed Date as
determined under the Scheme of Amalgamation) less
accumulated depreciation and net of impairment, if
any. The actual cost capitalised includes freight,
installation cost, duties and taxes and other incidental
expenses related to acquisition.

Properties in the course of construction for production,
supply or administration purposes are carried at cost,
less any recognized impairment loss. All the direct
expenditure related to implementation including
incidental expenditure incurred during the period of
implementation of a project, till it is commissioned, is
accounted as Capital work in Progress (CWIP) and such
properties are classified to the appropriate categories
of property, plant and equipment when completed and
ready for intended use.

Derecognition

All items of Property, Plant and Equipment are
derecognized upon disposal or when no future
economic benefits are expected to arise from the

Useful lives of Intangible Assets
Assets Useful Life

Software 5 years

k) Impairment

Financial Assets (other than at fair value)

The Company assesses at each Balance Sheet whether a
financial asset or a group of financial assets is impaired.
Ind AS 109 requires expected credit losses to be
measured through a loss allowance. The Company
recognizes lifetime expected losses for all trade
receivables that do not constitute a financing
transaction.

Non-Financial Assets

At the end of each reporting period, the Company
reviews the carrying amounts of its tangible and
intangible assets to determine whether there is any
indication that those assets have suffered an
impairment loss. If any such indication exists, the
recoverable amount of the asset is estimated in order to
determine the extent of the impairment loss (if any).
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 a reasonable and
consistent basis of allocation can be identified,
corporate assets are also allocated to individual cash
generating units, or otherwise they are allocated to the
smallest group of cash generating unit for which a
reasonable and consistent allocation basis can be
identified.

Recoverable amount is the higher of fair value less costs
of disposal and value in use. 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 for which the
estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash
generating unit) is estimated to be less than its carrying
amount, the carrying amount of the asset (or cash
generating unit) is reduced to its recoverable amount.
An impairment loss is recognized immediately in profit
and loss.

When an impairment loss subsequently reverses, the
carrying amount of the asset (or a 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
recognized for the asset (or cash generating unit) in
prior years. A reversal of an impairment loss is
recognized immediately in profit or loss.

l) Foreign Currencies

In preparing the Financial Statements of the Company,
the transactions in currencies other than the entity's

functional currency (INR) are recognized at the rates of
exchange prevailing at the dates of the transactions. At
the end of each reporting period, monetary items
denominated in foreign currencies are retranslated at
the rate prevailing at that date.

Exchange differences arising on monetary items are
recognized in profit or loss in the period in which they
arise.

m) Employee Benefits

Employee Benefits include Provident Fund, Employee
State Insurance Scheme, Gratuity Fund and
compensated absences.

1) Short-Term Employee Benefits:

The undiscounted amount of Short-Term
Employee Benefits expected to be paid in exchange
for the services rendered by employees are
recognized during the year when the employees
render the service.

2) Post Employment Obligations

(i) Defined Contribution Plan:

The Company's contribution to Provident
Fund, Superannuation Fund and Employees
State Insurance Scheme are considered as
defined contribution plans and are charged as
an expense based on the amount of
contribution required to be made and when
services are rendered by the employees.

(ii) Defined Benefit Plans:

For Defined Benefit Plans in the form of
Gratuity Fund and compensated absences, the
cost of providing benefits is determined using
the Projected Unit Credit method, with
actuarial valuations being carried out at each
balance sheet date. Remeasurement,
comprising actuarial gains and losses, the
effect of the changes to the return on plan
assets (excluding net interest), is reflected
immediately in the balance sheet with a
charge or credit recognized in other
comprehensive income in the period in which
they occur.

Remeasurement recognized in other
comprehensive income is reflected immediately in
retained earnings and is not reclassified to profit or
loss. Net interest is calculated by applying the
discount rate to the net defined benefit liability or
asset.

The Company recognizes the following changes in
the net defined benefit obligation as an expense in
the statement of profit and loss:

1. Service costs comprising current service
costs, gains and losses on curtailments and
settlements; and

2. Net interest expense or income

The retirement benefit obligation recognized
in the Balance Sheet represents the present
value of the defined benefit obligation as
adjusted for unrecognized past service cost,
as reduced by the fair value of scheme assets.
Any asset resulting from this calculation is
limited to past service cost, plus the present
value of available refunds and reductions in
future contributions to the schemes.

3) Other long-term employee benefit obligations

The liabilities for leave are not expected to be settled wholly
within twelve 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 the Statement of Profit and 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

n) Borrowing Costs

Borrowing Costs directly attributable to the
acquisition, construction or production of qualifying
assets, which are assets that necessarily takes 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.

All other borrowing costs are recognized in profit or
loss in the period in which they are incurred.

o) Earnings Per Share

Basic Earnings Per Share is computed by dividing the
profit/(loss) for the year attributable to equity
shareholders by the weighted average number of
equity shares outstanding during the year. The
Company did not have any potential dilutive securities
in current

p) Taxation

Tax expense represents the sum of the tax currently
payable and deferred tax.

Current Tax

Tax on income for the current period is determined on
the basis on estimated taxable income and tax credits
computed in accordance with the provisions of the
relevant tax laws and based on the expected outcome of

assessments / appeals.

Current income tax relating to items recognised
directly in equity is recognised in equity and not in the
Statement of Profit and Loss.

Management periodically evaluates positions taken in
the tax returns with respect to situations in which
applicable tax regulations are subject to interpretation
and establishes provisions where appropriate.

Deferred Tax

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

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
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
assets to be utilised. Unrecognised deferred tax assets
are reassessed at each reporting date and are
recognised to the extent that it has become probable
that future taxable profits will allow the deferred tax
assets 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 relating to items recognised ouside the
statement of profit and loss is recognised outside the
Statement of Profit and Loss. Deferred tax items are
recognised in correlation to the underlying transaction
either in other comprehensive income or directly in
equity.

The break-up of the major components of the deferred
tax assets and liabilities as at balance sheet date has
been arrived at after setting off deferred tax assets and
liabilities where the Company have a legally
enforceable right to set-off assets against liabilities.