2.4 MATERIAL ACCOUNTING POLICY INFORMATION
The material accounting policy information used in preparation of the financial statements have been discussed in the respective notes. All accounting policies
have been consistently applied to all the period presented in standalone financial statements unless Otherwise stated.
2.5 USE OF ESTIMATES AND JUDGEMENT
The preparation of the financial statements in conformity with Ind AS requires the management to make estimates and assumptions considered in the
reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes
that the estimates used in preparation of the standalone financial statements are prudent and reasonable. Future results could differ due to these estimates
and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise. The Company
uses the following critical accounting judgements, estimates and assumptions in preparation of its standalone financial statements:
a. Employee retirement plans - The Company provides both defined benefit employee retirement plans and defined contribution plans. Measurement of
pension and other superannuation costs and obligations under such plans require numerous assumptions and estimates that can have a significant impact on
the recognized costs and obligations, such as future salary level, discount rate, attrition rate and mortality.Government bond yield is considered as discount
rate. Assumptions for salary increase in the remaining service period for active plan participants are based on expected salary increase. Changes in these
assumptions can influence the net asset or liability for the plan as well as the pension cost. These assumptions have been explained under note no. 26.b.
b. Provision for income tax and deferred tax assets - The Company uses judgements based on the relevant rulings in the areas of allocation of
revenue, costs, allowances, and disallowances which is exercised while determining the provision for income tax. Deferred income tax expense is
calculated based on the differences between the carrying value of assets and liabilities for financial reporting purposes and their respective tax basis
that are considered temporary in nature. Valuation of deferred tax assets is dependent on management's assessment of future recoverability of the
deferred benefit. Expected recoverability may result from expected taxable income in the future, planned transactions or planned tax optimizing
measures. Economic conditions may change and lead to a different conclusion regarding recoverability. Refer note no. 8 & 31.
c. Leases - The Company evaluates if an arrangement qualifies to be a lease as per the requirements of Ind AS 116. Identification of a lease
requires significant judgement. The Company uses significant judgement in assessing the lease term (including anticipated renewals) and
the applicable discount rate. The Company determines the lease term as the non-cancellable period of a lease, together with both periods
covered by an option to extend the lease if the Company is reasonably certain to exercise that option; and periods covered by an option to
terminate the lease if the Company is reasonably certain not to exercise that option. In assessing whether the Company is reasonably certain
to exercise an option to extend a lease, or not to exercise an option to terminate a lease, it considers all relevant facts and circumstances that
create an economic incentive for the Company to exercise the option to extend the lease, or not to exercise the option to terminate the lease.
The Company revises the lease term if there is a change in the non-cancellable period of a lease. The discount rate is generally based on the
incremental borrowing rate specific to the lease being evaluated or for a portfolio of leases with similar characteristics. Refer note no. 17.
d. Useful lives of property, plant and equipment and intangible assets - Management reviews its estimate of the useful lives of depreciable/
amortisable assets at each reporting date, based on the expected utility of the assets. Uncertainties in these estimates relate to technical and
economic obsolescence that may change the utility of IT equipment, software and other plant and equipment. This reassessment may result in change
in depreciation expense in future periods. Refer note no. 3 & 4.
e. Fair Value Measurement - The Company 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 the market participants to price
the instrument. The Company's assumptions are based on observable data as far as possible, otherwise on 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.
f. Contingent assets and liabilities, uncertain assets and liabilities - Liabilities that are uncertain in timing or amount are recognized when a
liability arises from a past event and an outflow of cash or other resources is probable and can be reasonably estimated. Contingent liabilities are
possible obligations where a future event will determine whether the Company will be required to make a payment to settle the liability, or where
the size of the payment cannot be determined reliably. Material contingent liabilities are disclosed unless a future payment is considered remote.
Evaluation of uncertain liabilities and contingent liabilities and assets requires judgement and assumptions regarding the probability of realisation and
the timing and amount, or range of amounts, that may ultimately be incurred. Such estimates may vary from the ultimate outcome as a result of
differing interpretations of laws and facts. Contingent assets are neither recognised nor disclosed in the standalone financial statements. Refer note
32.1
g. Revenue Recognition - Revenue is recognised upon transfer of control of promised products or services to customers in an amount that reflects the
consideration which the Company expects to receive in exchange for those products or services. Revenue is measured based on the transaction price,
which is the consideration, adjusted for volume discounts, price concessions and incentives, if any, as specified in the contract with the customer. The
Company exercises judgment in determining whether the performance obligation is satisfied at a point in time or over a period of time. The Company
considers indicators such as how customer consumes benefits as services are rendered or who controls the asset as it is being created or existence
of enforceable right to payment for performance to date and alternate use of such product or service, transfer of significant risks and rewards to the
customer, acceptance of delivery by the customer, etc. The provision for warranty is computed based on sales volume and historical information about
product failures (and consequential repairs and returns), adjusted for the key developments occurring during the year which may affect the liability.
Refer note no. 23.
2.6 RECENT ACCOUNTING PRONOUNCEMENTS
Ministry of Corporate Affairs ("MCA") notifies new standard or amendments to the existing standards under Companies (Indian Accounting Standards) Rules
as issued from time to time. During the year ended March 31, 2026, a new Standard on Accounting, Ind AS 118 (equivalent to IFRS 18) - Presentation and
Disclosure in Financial Statements has been introduced which will be applicable from April 1, 2027 and will replace Ind AS 1 once notified by the Ministry of
Corporate Affairs (MCA). Ind AS 118 sets out general and specific requirements for the presentation of financial statements and for disclosures in the notes.
Additional clarifications issued in August 2025 relating to liability classification have been considered by the Company. These do not have a material impact
on the standalone financial statements.
3 PROPERTY, PLANT AND EQUIPMENT (INCLUDING RIGHT OF USE ASSETS) AND CAPITAL WORK-IN-PROGRESS
Accounting Policy:-
Property, plant and equipment are carried at cost less subsequent accumulated depreciation and subsequent impairment losses, if any. The cost of property,
plant and equipment comprises its purchase price net of any trade discounts and rebates, any import duties and other taxes (other than those subsequently
recoverable from the tax authorities), any directly attributable expenditure on making the asset ready for its intended use, other incidental expenses and
interest on borrowings attributable to acquisition of qualifying property, plant and equipment up to the date the asset is ready for its intended use.
In case of self-constructed assets, cost includes the costs of all materials used in construction, direct labour, allocation of overheads, directly attributable
borrowing costs.
Capital work-in-progress:
Capital work-in-progress assets in the course of construction for production or/and supply of goods or services or administrative purposes, or for
purposes not yet determined, which are not ready for intended use as on the date of Balance Sheet are disclosed as Capital work-in-progress and
are carried at cost, less any recognised impairment loss, if any
An item of PPE is de-recognised upon disposal or when no future economic benefits are expected to arise from the continued use of the assets. Any gain
or loss arising on the disposal or retirement of an item of PPE, is determined as the difference between the sales proceeds and the carrying amount of the
asset, and is recognised in Statement of Profit and Loss.
Right of Use (ROU) Assets
The ROU assets comprise the initial measurement of the corresponding lease liability, lease payments made at or before the commencement day and any
initial direct costs. They are subsequently measured at cost less accumulated depreciation and impairment losses, if any.
ROU assets are depreciated over the shorter period of the lease term and useful life of the underlying asset. If the company is reasonably certain to exercise
a purchase option, the right-of-use asset is depreciated over the underlying asset's useful life. The depreciation starts at the commencement date of the
lease. The estimated useful life and depreciation method are reviewed at the end of each annual reporting period, with the effect of any changes in estimate
being accounted for on a prospective basis.
3 PROPERTY, PLANT AND EQUIPMENT (INCLUDING RIGHT OF USE ASSETS) AND CAPITAL WORK-IN-PROGRESS (CONTD)
Depreciation
Depreciation on property, plant and equipment has been provided on the straight-line method as per the useful life prescribed in Schedule II to the Companies
Act, 2013 except in respect of the following categories of assets, in whose case the life of the assets has been assessed as under based on technical advice,
taking into account the nature of the asset, the estimated usage of the asset, the operating conditions of the asset, past history of replacement, anticipated
technological changes, manufacturers warranties and maintenance support, etc.:
Factory building - 25 years
Plant and equipment (other than moulds-3 shifts) - 20 years
Plant and equipment (other than moulds-2 shifts) - 26.67 years
Plant and equipment (other than moulds-1 shift) - 40 years
Vehicles - 3 years
Freehold land is not depreciated, except for improvements to the land included therein.
The estimated useful life, depreciation method and residual values are reviewed at the end of each annual reporting period, with the effect of any changes
in estimate being accounted for on a prospective basis. Each component of an item of property, plant and equipment with a cost that is significant in relation
to the cost of that item is depreciated separately if its useful life differs from the others components of the asset.
Impairment
Property, plant and equipment 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. If such assets are considered to be impaired, the impairment to be recognized
in the Statement of Profit and Loss is measured by the amount by which the carrying value of the assets exceeds the estimated recoverable amount of the asset.
An impairment loss is reversed in the Statement of Profit and Loss if there has been a change in the estimates used to determine the recoverable amount. The
carrying amount of the asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have
been determined (net of any accumulated depreciation) had no impairment loss been recognised for the asset in prior years.
(i) The Company has not revalued its property, plant and equipment during the year ended March 31, 2026 and March 31, 2025.
(ii) The Company does not have any immovable property, whose title deeds are not held in the name of the Company during the year ended March
31, 2026 and also as at March 31, 2025.
(iii) Freehold land and buildings with a carrying amount of ' 2,272.84 Lakhs (as at March 31,2025: ' 8,400.37 Lakhs) have been pledged to secure
borrowings of the Company (Refer Note 16 and 20).
(iv) Plant and equipments, furniture and fixtures and office equipments with a carrying amount of ' 2,129.84 Lakhs (as at March 31, 2025:
' 7,664.09 Lakhs) have been pledged to secure borrowings of the Company (Refer Note 16 and 20).
(v) The Company has performed an assessment of its property plant and equipment, Capital work in progress and its Right of Use Assets
for possible triggering events or circumstances for an indication of impairment and has concluded that there were no triggering events or
circumstances that would indicate the property plant and equipment are impaired.
Capital work in progress consist primarily of expenditure towards acquisition of battery manufacturing machineries and civil works.
4 INTANGIBLE ASSETS AND INTANGIBLE ASSETS UNDER DEVELOPMENT
Accounting Policy:-
Intangible assets
Intangible assets are carried at cost less accumulated subsequent amortisation and subsequent impairment losses, if any. The estimated useful life
and amortization method are reviewed at the end of each annual reporting period, with the effect of any changes in estimate being accounted for
on a prospective basis.
Intangible assets under development
Expenditure on research and development eligible for capitalisation are carried as intangible assets under development where such assets are not
yet ready for their intended use.
NOTE (5-7) FINANCIAL ASSETS
Accounting Policy:-
All financial assets are recognised on trade date when the purchase of a financial asset is under a contract whose term requires delivery of the
financial asset within the time frame established by the market concerned. Financial assets are initially measured at fair value, plus transaction
costs, except for those financial assets which are classified at fair value through profit or loss (FVTPL) at inception. All recognised financial assets
are subsequently measured in their entirety at either amortised cost or fair value.
The Company derecognises a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial
asset and substantially all the risks and rewards of ownership of the asset to another entity.
Classification of financial assets
Financial assets are classified as 'equity instrument' if it is a non-derivative and meets the definition of 'equity' for the issuer (under Ind AS 32 Financial
Instruments: Presentation). All other non-derivative financial assets are 'debt instruments
Initial Recognition and Subsequent Recognition
i) Amortised Cost
Financial assets are subsequently measured at amortised cost using the effective interest method, if these financial assets are held within a
business whose objective is to hold these assets in order to collect contractual cash flows and the contractual terms of the financial assets
give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
The Company may irrevocably elect at initial recognition to classify a debt instrument that meets the amortised cost criteria above as at
FVTPL if that designation eliminates or significantly reduces an accounting mismatch had the financial asset been measured at amortised cost.
ii) Fair value through other comprehensive income (FVTOCI)
Financial assets are measured at fair value through other comprehensive income if these financial assets are held within a business whose
objective is achieved by both collecting contractual cash flows on specified dates that are solely payments of principal and interest on the
principal amount outstanding and selling financial assets.
(5-7) FINANCIAL ASSETS (CONTD)
Investments in equity instruments at FVTOCI are subsequently measured at fair value with gains and losses arising from changes in fair value
recognised in other comprehensive income and accumulated in other Equity. Where the asset is disposed of, the cumulative gain or loss
previously accumulated in the other Equity is directly reclassified to retained earnings.
The Company has an irrevocable option to present changes in the fair value of equity investments not held for trading in OCI.
iii) Fair value through profit and loss (FVTPL)
Financial assets are measured at fair value through profit or loss unless they are measured at amortised cost or at fair value through other
comprehensive income on initial recognition. The transaction costs directly attributable to the acquisition of financial assets and liabilities at
fair value through profit or loss are immediately recognised in statement of profit and loss.
Refer Note 32.7 for disclosure related to Fair value measurement of financial instruments.
iv) Investment in Subsidiaries
The Investment in Subsidiaries and Joint Venture are carried in the financial statement at Historical cost except when the Investment, or a
portion thereof, is classified as held for sale, in which case measured at lower of carrying amount and fair value less costs to sell.
v) Impairment of Financial Assets
Loss allowance for expected credit losses is recognised for financial assets measured at amortised cost. For financial assets whose credit risk has
not significantly increased since recognition, loss allowance equal to twelve month's expected credit losses is recognised. Loss allowance equal
to the lifetime expected credit losses is recognised if the credit risk on the financial instrument has significantly increased since initial recognition.
8 INCOME TAXES
Accounting Policy:-
Current Tax
The tax currently payable is based on taxable profit for the year. The current income tax charge is calculated on the basis of the tax laws enacted or
substantively enacted at the balance sheet date.
Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to
interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.
Deferred Tax
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. Such assets and liabilities are not recognised if the temporary difference arises from initial recognition of goodwill or from the initial recognition
(other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.
8 INCOME TAXES (CONTD)
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 reporting date, to recover or settle the carrying amount of its assets and liabilities.
Minimum Alternative Tax (MAT) 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.
Current and deferred tax for the year
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.
10 INVENTORIES
Accounting Policy:-
Inventories of raw materials and stores and spare parts are valued at the lower of weighted average cost and the net realisable value after providing
for obsolescence and other losses, where considered necessary.
Work-in-progress and finished goods are valued at lower of cost and net realisable value where cost is worked out on weighted average basis.
Cost includes all charges in bringing the goods to the present location and condition, including other levies, transit insurance and receiving charges
alongwith appropriate proportion of overheads.
However, materials and other supplies held for use in the production of inventories (finished goods, work-in-progress) are not written down below
the cost if the finished products in which they will be used are expected to sell at or above the cost.
Net realizable value represents the estimated selling price for inventories less estimated costs of completion and costs necessary to make the sale.
11 TRADE RECEIVABLES
Accounting Policy:-
Trade receivables are measured at their transaction price unless it contains a significant financing component in accordance with Ind AS 115. Trade
receivables are held with the objective of collecting the contractual cash flows and therefore are subsequently measured at amortised cost less
loss allowance, if any.
As per the consistent practice followed by the company trade receivables due to be received for more than 120 days is fully provided.
The credit period is upto 90 days. The Company does not have any contracts where the period between the transfer of the promised goods or services
to the customer and payment by the customer exceeds 1 year. As a consequence, the Company does not adjust any of the transaction prices for
the time value of money.
(i) The Company's maximum exposure to credit risk with respect to customers as at March 31, 2026 ' 842.51 Lakhs (as at March 31, 2025:
' 1,138.34 Lakhs), which is the fair value of trade receivables less impairment loss as shown below. There is no concentration of credit risk
with respect to any particular customer.
(ii) Trade receivables amounting to ' 11,731.58 Lakhs (as at March 31,2025: ' 10,225.32 Lakhs) have been pledged to secure borrowings of the
Company (Refer Note 16 & 20).
(iii) No trade or other receivable are due from directors or other officers of the Company either severally or jointly with any other person. Further,
no trade or other receivable are due from firms or private companies respectively in which any director is a partner, or director or member.
13 ASSET CLASSIFIED AS HELD FOR SALE
Accounting Policy:-
Asset held for Sale is classified as such 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. It is measured at the lower of carrying amount and fair value less cost to sell. An Asset held for Sale is
derecognised upon disposal or when the asset is permanently withdrawn from use and no future economic benefits are expected from the disposal.
Any gain or loss arising thereon (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included
in profit or loss in the year in which the property is derecognised.
13 ASSET CLASSIFIED AS HELD FOR SALE (CONTD)
Note 2: On March 24, 2026, the Company entered into a Share Purchase Agreement with Universal Wellbeing Pte. Ltd. (the buyer) for the disposal
of its entire holding of 7.50 lakh equity shares in Preferred Consumer Products Private Limited for a total consideration of ' 750.00 lakhs. As the
sale process was initiated but not finalized by the end of the reporting period, the carrying value of the investment, amounting to ' 750.00 lakhs
being lower of carrying amount and fair value less cost to sell, has been reclassified and disclosed as 'Assets held for sale' as at March 31, 2026, in
accordance with applicable accounting standards.
14 EQUITY SHARE CAPITAL (CONTD)Dividend
i) Shareholders of the company approved final dividend of ' 1.5 per fully paid up equity share of ' 5.00/- each (i.e. 30% of the face value of equity
share) aggregating to ' 1,090.31 Lacs for the financial year ended March 31, 2025, which was paid during the Current Financial Year.
ii) The Board of Directors has recommended a dividend at the rate of ' 2.50/- per fully paid up equity shares of ' 5.00/- each (i.e., 50% of face
value of equity share) aggregating to ' 1,817.18 lakhs for the financial year ended March 31, 2026. The payment of dividend is subject to
approval of the shareholders at the ensuing Annual General Meeting of the company.
FINANCIAL LIABILITIES (NOTE 16-18)
Financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument. Financial liabilities are initially
measured at fair value. Transaction costs that are directly attributable to the acquisition of financial liabilities (other than financial liabilities at fair
value through profit or loss) are deducted from the fair value measured on initial recognition of financial liability. They are measured at amortised
cost using the effective interest method.
The Company derecognises financial liabilities when, and only when, the Company's obligations are discharged, cancelled, or have expired.
Refer Note 32.7 for disclosure related to Fair value measurement of financial instruments.
17 LEASE LIABILITIES
Accounting Policy:-
The Company assesses whether a contract is or contains a lease, at inception of the contract. The Company recognises a right-of-use asset and a
corresponding lease liability with respect to all lease arrangements in which it is the lessee, except for short-term leases (defined as leases with
a lease term of 12 months or less) and leases of low value assets. For these leases, the Company recognises the lease payments as an operating
expense on a straight-line basis over the lease term, unless another systematic basis is more representative of the time pattern in which economic
benefits from the leased assets are consumed. Contingent and variable rentals are recognized as expense in the periods in which they are incurred.
The lease payments that are not paid at the commencement date are discounted using the interest rate implicit in the lease. If that rate cannot be
readily determined, which is generally the case for leases in the Company, the lessee's incremental borrowing rate is used, being the rate that the
individual lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic
environment with similar terms, security and conditions.
To determine the incremental borrowing rate, the Company uses a build-up approach that starts with a risk-free interest rate adjusted for credit risk
and makes adjustments specific to the lease, e.g. term, security etc.
As a practical expedient, Ind AS 116 permits a lessee not to separate non-lease components when bifurcation of the payments is not available
between the two components, and instead account for any lease and associated non-lease components as a single arrangement. The Company has
used this practical expedient.
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