2.1 Basis of Preparation

a) Statement of Compliance:

The Company prepares its Standalone Financial
Statements to comply with the Indian Accounting
Standards ("Ind AS") specified under section 133
of the Companies Act, 2013 read with Companies
(Indian Accounting Standards) Rules, 2015, as
amended from time to time and the presentation and
disclosure requirements of Division II of Schedule III
of Companies Act, 2013 (Ind AS compliant Schedule
III) as amended from time to time. These Standalone
financial statements include Balance Sheet as at
March 31, 2026, the Statement of Profit and Loss
including Other Comprehensive Income, Statement
of Cash flows and Statement of changes in equity
for the year ended March 31, 2026, and a summary
of material accounting policy information and other
explanatory information (together hereinafter referred
to as “Financial Statements”).

b) Basis of Measurement:

The Standalone financial statements for the year
ended March 31, 2026 have been prepared on
accrual basis following historical cost convention,
except for the following assets and liabilities which
have been measured at fair value at the end of each
reporting period in accordance with IND AS.

• certain financial assets and liabilities
(including derivative instruments) that are
measured at fair value;

Accounting policies and methods of computation
followed in the Standalone financial statements
are same as compared with the annual financial
statements for the year ended March 31, 2025.

The Company has prepared the financial statements
on the basis that it will continue to operate as
a going concern.

c) Classification of Current / Non-Current Assets
and Liabilities:

The Company presents assets and liabilities in the
Standalone Balance sheet based on current / non¬
current classification. It has been classified as
current or non-current as per the Company’s normal
operating cycle, as per para 66 and 69 of Ind AS
1 and other criteria as set out in the Division II of
Schedule III to the Companies Act, 2013.

Operating Cycle:

The operating cycle is the time between the acquisition
of assets for processing and their realisation in cash
and cash equivalents. The Company has ascertained
its operating cycle as 12 months for the purpose
of current or non-current classification of assets
and liabilities. Deferred tax assets and liabilities are
classified as non-current assets and liabilities.

d) Functional and presentation currency

The Standalone financial statements are presented in
Indian Rupees (?) which is the functional currency of
the Company. All amounts disclosed in the financial
statements which also include the accompanying
notes have been rounded off to the nearest lakhs
up to two decimal places, as per the requirement
of Schedule III to the Companies Act 2013, unless
otherwise stated. Transactions and balances with
values below the rounding off norm adopted by the
Company have been reflected as “0” in the relevant
notes to these financial statements.

2.2. Use of Estimates, Judgements and Assumptions

In the course of applying the policies outlined in all notes,
the Company is required to make judgements, estimates
and assumptions about the carrying amount of assets,
liabilities, income and expenses that are not readily
apparent from other sources. The estimates and associated
assumptions are based on historical experience and other
factors (including expectations of future events) that are
considered to be relevant. Actual results may differ from
these estimates. Estimates and underlying assumptions
are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised prospectively in the statement
of profit and loss in the year in which the estimates are
revised & in any future periods affected.

The key assumptions concerning the future and other
key sources of estimation uncertainty at the reporting
date, that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities
within the next financial year, are described below. The
Company based its assumptions and estimates on
parameters available when the financial statements were

prepared. Existing circumstances and assumptions about
future developments, however, may change due to market
changes or circumstances arising that are beyond the
control of the Company. Such changes are reflected in
the assumptions when they occur. The Company uses the
following critical accounting estimates in preparation of its
standalone financial statements:

Estimates and assumptions are required in particular for:

• Determination of the estimated useful life of Property
Plant and Equipment and Intangible Assets:

Property, Plant and Equipment / Intangible Assets are
depreciated / amortised over their estimated useful
life, after taking into account estimated residual
value. Management reviews the estimated useful life
and residual values of the assets annually in order to
determine the amount of depreciation / amortisation
to be recorded during any reporting period. The
useful life and residual values are based on the
Company’s historical experience with similar assets
and take into account anticipated technological &
future risks. The depreciation / amortisation for future
periods is revised if there are significant changes
from previous estimates.

• Recoverability of trade receivables

Judgements are required in assessing the
recoverability of overdue trade receivables and
determining whether a provision against those
receivables is required. Factors considered include
the credit rating of the counterparty, the amount
and timing of anticipated future payments and any
possible actions that can be taken to mitigate the risk
of non-payment.

• Provisions

Provisions and liabilities are recognized in the period
when it becomes probable that there will be a future
outflow of funds resulting from past operations
or events and the amount of cash outflow can be
reliably estimated. The timing of recognition and
quantification of the liability (including litigations)
requires the application of judgements to existing
facts and circumstances, which can be subject to
change. The carrying amount of provisions and
liabilities are reviewed regularly and revised to take
account of changing facts and circumstances.

• Recognition and measurement of defined
benefit obligations

The obligation arising from defined benefit plan is
determined on the basis of actuarial assumptions.
Key actuarial assumptions include discount rate,

trends in salary escalation, actuarial rates and life
expectancy. The discount rate is determined by
reference to market yields/rates available at the end
of the reporting period on appliable bonds. The period
to maturity of the underlying bonds correspond
to the probable maturity of the post-employment
benefit obligations.

• Application of Discount rates

Estimates of rates of discounting are done for
measurement of fair values of certain financial assets
and liabilities, which are based on prevalent bank
interest rates and the same are subject to change.

• Impairment of Non-Financial Assets

The Company assesses at each reporting date
whether there is an indication that an asset may
be impaired. If an indication exists, or when the
annual impairment testing of the asset is required,
the Company estimates the asset’s recoverable
amount. An asset’s recoverable amount is the higher
of an asset’s or Cash-generating-unit's (CGU’s) fair
value less costs of disposal and its value in use. It
is determined for an individual asset, unless the
asset does not generate cash inflows that are largely
independent of those from the other assets or group
of assets. When the carrying amount of an asset or
CGU exceeds it recoverable amount, the asset is
considered as impaired and it’s written down to its
recoverable amount.

The Company estimates the value-in-use of the
Cash generating unit (CGU) based on the estimated
future cash flows after considering current economic
conditions and trends, estimated future operating
results and growth rate and anticipated future
economic and regulatory conditions. The estimated
future cash flows are discounted to their present
value using a pre-tax discount rate that reflects the
current market assessments of the time value of
money and the risks specific to the asset/ CGU. In
determining fair value less cost of disposal, recent
market transactions are taken into account, if no
such transactions can be identified, an appropriate
valuation model is used.

• Impairment of Financial Assets

The impairment provisions for financial assets are
based on assumptions about risk of default and
expected cash loss rates. The Company uses
judgements in making these assumptions and
selecting the inputs to the impairment calculation,
based on Company’s past history, existing market

conditions as well as forward looking estimates at the
end of each reporting period.

• Provision for income tax and deferred tax assets

The Company uses estimates and 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. A deferred tax asset is recognised to the
extent that it is probable that future taxable profit will
be available against which the deductible temporary
differences and tax losses can be utilised. 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 judgement 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. Accordingly, the Company
exercises its judgement to reassess the carrying
amount of deferred tax assets at the end of each
reporting period.

2.3. PROPERTY,PLANT AND EQUIPMENT (PPE)

i. Tangible Assets

• Freehold Land

Freehold Land is carried at historical cost.

• Property, Plant and Equipment:

Property, Plant and Equipment are stated at
historical cost, net of recoverable taxes, trade
discount and rebates less accumulated depreciation
and impairment losses, if any. Such cost includes
purchase price, borrowing cost and any 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.

Subsequent costs are included in the asset’s
carrying amount or recognised 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.

ii. Intangible assets

Intangible assets that are acquired are measured
initially at cost net of recoverable taxes, trade discount
& rebate. After initial recognition, an intangible asset
is carried at its cost less accumulated amortisation
and impairment loss if any. Subsequent expenditure
is capitalised only when it increases the future

economic benefits from the specific asset to which it
relates & the cost can be measured reliably.

iii. Capital Work-in-Progress:

Capital Work-in-Progress includes expenditure
during construction period incurred on projects
during the project development stage prior to
its intended use, are treated as pre-operative
expenses pending allocation to the assets. These
expenses are apportioned to the respective fixed
assets on their completion / commencement of
commercial production.

iv. Depreciation/Amortisation:

Depreciation on Property, Plant and Equipment is
provided using straight-line method. Depreciation
is provided based on useful life of the assets as
prescribed in accordance with the Part C of Schedule
II of Companies Act, 2013.

Intangible assets are carried at cost and amortised
on a straight line basis so as to reflect the pattern in
which the asset’s economic benefits are consumed.
Amortisation of intangible assets is calculated
over the managements’ estimated useful life as
mentioned below:

The residual values, useful life and methods of
depreciation of Property, Plant and Equipment are
reviewed at each financial year end and adjusted
prospectively, if appropriate.

Depreciation on addition to assets or on sale/
discardment of assets, is calculated pro rata from
the date of such addition or upto the date of sale/
discardment, as the case may be.

Gains or losses arising from derecognition of
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 assets
is derecognized.

v. Impairment of Non-Financial Assets- Property,
Plant and Equipment and Intangible Assets :

The Company assesses at each reporting date as
to whether there is any indication that any Property,
Plant and Equipment and 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.

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.

The impairment loss recognised in prior accounting
period is reversed if there has been a change in the
estimate of recoverable amount.

2.4. Finance Costs

Finance 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 are capitalised as part of the cost of the
asset. All other finance costs are expensed in the period
in which they occur. Finance costs consist of interest and
other costs that an entity incurs in connection with the
borrowing of funds.

2.5. Foreign Currency Transactions and Translation

Foreign currency transactions are recorded on initial
recognition in the functional currency using the exchange
rate at the date of the transaction.

Monetary assets and liabilities denominated in foreign
currencies are translated into the functional currency at
the exchange rate at the reporting date.

Exchange differences arising on the settlement or
translation of monetary items are recognised in Standalone
Statement of Profit and Loss in the year in which they arise.

2.6. Investments in Subsidiaries

The Company considers an investee company as a
subsidiary company when it controls the investee company.
Control is achieved when the Company is exposed, or has
rights, to variable returns from its involvement with the
investee and has the ability to affect those returns through
its power over the investee. Specifically, the Company
controls an investee if, and only if, the Company has:

• Power over the investee (i.e., existing rights that give
it the current ability to direct the relevant activities
of the investee)

• Exposure, or rights, to variable returns from its
involvement with the investee

• The ability to use its power over the investee to
affect its returns

• Investments in subsidiaries are carried at cost less
accumulated impairment losses, if any. Where an
indication of impairment exists, the carrying amount
of the investment is assessed. Where the carrying
amount of an investment is greater than its estimated
recoverable amount, it is written down immediately
to its recoverable amount and the difference is
recognised in the Statement of Profit and Loss.

2.7. Fair value measurement

The Company measures financial instruments at fair value
at each balance sheet date.

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.
The fair value measurement is based on the presumption
that the transaction to sell the asset or transfer the liability
takes place either:

I. In the principal market for the asset or liability, or

II. In the absence of a principal market, in the most
advantageous market for the asset or liability.

A fair value measurement of a non-financial asset
takes into account a market participant’s ability to
generate economic benefits by using the asset in
its highest and best use or by selling it to another
market participant that would use the asset in its
highest and best use.

The Company uses valuation techniques that are
appropriate in the circumstances and for which
sufficient data are available to measure fair value,
maximizing the use of relevant observable inputs and
minimizing the use of unobservable inputs.

All assets and liabilities for which fair value is
measured or disclosed in the financial statements
are categorized within the fair value hierarchy, to

provide an indication about the reliability of inputs
used in determining fair value, the Company has
classified its financial statements into three levels
prescribed under the Ind AS as follows, based on the
lowest level input that is significant to the fair value
measurement as a whole:

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

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

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

For the purpose of fair value disclosures, the
Company has determined classes of assets and
liabilities on the basis of the nature, characteristics
and risks of the asset or liability and the level of the
fair value hierarchy as explained above.

2.8. Revenue from Operations

The Company derives revenues from sale of manufactured
goods, traded goods and related services.

Revenue from contracts with customers is recognized
on transfer of control of promised goods or services to
a customer at an amount that reflects the consideration
to which the Company is expected to be entitled to in
exchange for those goods or services.

Revenue towards satisfaction of a performance obligation
is measured at the amount of transaction price (net of
variable consideration) allocated to that performance
obligation. The transaction price of goods sold is net of
variable consideration on account of various discounts
and schemes offered by the Company as part of the
contract. This variable consideration is estimated based
on the expected value of outflow. Revenue (net of variable
consideration) is recognized only to the extent that it
is highly probable that the amount will not be subject
to significant reversal when uncertainty relating to its
recognition is resolved.

Sale of Products

Revenue from sale of products is recognized when
the control on the goods have been transferred to the
customer. The performance obligation in case of sale of
product is satisfied at a point in time i.e., when the material
is shipped to the customer or on delivery to the customer,
as may be specified in the contract

Incentives on exports and other Government incentives

Incentives on exports and other Government incentives
related to operations are recognized in the Standalone
Statement of Profit and Loss where there is a reasonable
assurance that the grant will be received and the Company
will comply with all attached conditions.

Contract balances and Trade receivables

A receivable represents the Company’s right to an amount
of consideration that is unconditional.

Contract liabilities

A contract liability is the obligation to transfer goods or
services to a customer for which the Company has received
consideration (or an amount of consideration is due) from
the customer. If a customer pays consideration before the
Company transfers goods or services to the customer, a
contract liability is recognized when the payment is made.
Contract liabilities are recognized as revenue when the
Company performs under the contract.

Other Income

Interest income from a financial asset is recognized when
it is probable that the economic benefits will flow to the
Company and the amount of income 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, which is the rate that exactly
discounts estimated future cash receipts through the
expected life of the financial asset to that asset’s net
carrying amount on initial recognition.

2.9. Tax Expenses

Income tax expense comprises current tax expense and
deferred tax expense & includes any adjustments related
to part periods in current or deferred tax adjustments that
may become necessary due to certain developments
during the relevant period. It is recognised in profit or loss
except to the extent that it relates to items recognised
directly in equity or in other comprehensive income. In
which case, the tax is also recognised directly in equity or
other comprehensive income, respectively.

Current tax

Current tax comprises the expected tax payable or
recoverable on the taxable profit or loss for the year and
any adjustment to the tax payable or recoverable in respect
of previous years. It is measured at the amount expected
to be paid to (recovered from) the taxation authorities
using the applicable tax rates and tax laws.

Current tax assets and liabilities are offset only if,

• the Company has a legally enforceable right to set off
the recognised amounts; and

• intends either to settle on a net basis, or to realize the
asset and settle the liability simultaneously.

Deferred tax

Deferred tax is recognised in respect of temporary
differences between the carrying amount of assets and
liabilities for financial reporting purpose and the amount
considered for tax purpose.

Deferred tax assets are recognised for unused tax losses,
unused tax credits and deductible temporary differences
to the extent that it is probable that future taxable profits
will be available against which they can be utilized.
Deferred tax assets are reviewed at each reporting date
and are reduced to the extent that it is no longer probable
that sufficient taxable profit will be available to allow the
benefit of part or all of that deferred tax asset to be utilized
such reductions are reversed when it becomes probable
that sufficient taxable profit will be available.

Unrecognized deferred tax assets are reassessed at
each reporting date and recognised to the extent that it
has become probable that future taxable profits will be
available against which they can be recovered

Deferred tax is measured at the tax rates that are expected
to be applied to temporary differences when they reverse,
using tax rates enacted or substantively enacted by the
end of the reporting year.

The measurement of deferred tax assets and liabilities
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.

Deferred tax assets and liabilities are offset only if:

• the entity has a legally enforceable right to set off
current tax assets against current tax liabilities; and

• the deferred tax assets and the deferred tax liabilities
relate to income taxes levied by the same taxation
authority on the same taxable entity

2.10. Inventories

Inventories are measured at the lower of cost and net
realizable value after providing for obsolescence and
other losses, where considered necessary on an item-by¬
item basis. 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.

Cost of raw materials is determined on a First In-First Out
(FIFO) basis and includes all applicable costs, including
inward freight, incurred in bringing goods to their present
location and condition.

Cost of work-in-progress and finished goods includes
direct materials as aforesaid, direct labour cost and a
proportion of manufacturing overheads based on total
manufacturing overheads to raw materials consumed.

Cost of stock-in-trade, packing materials and stores and
spares includes cost of purchase and includes all applicable
costs, including inward freight, incurred in bringing the
inventories at their present location and condition. Cost is
determined on a weighted average basis.

Net realizable value represents the estimated selling price
less all estimated costs of completion and estimated costs
to be incurred in marketing, selling and distribution.

2.11. Leases

As a Lessee:

The Company assesses whether a contract is or 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 contact 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.

The Company recognises a right-of-use asset and a
corresponding lease liability with respect to all lease
agreements 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 term of the lease
unless another systematic basis is more representative
of the time pattern in which economic benefits from the
leased asset are consumed

Certain lease arrangements include 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.

The lease liability is initially measured at amortised cost at
the present value of the lease payments that are not paid at

the commencement date, discounted by using the interest
rate implicit in the lease or, if not readily determinable,
using the incremental borrowing rate.

Lease payments included in the measurement of the lease
liability comprise:

I. fixed lease payments (including in-substance fixed
payments), less any lease incentives;

II. variable lease payments that depend on an index or
rate, initially measured using the index or rate at the
commencement date;

III. the amount expected to be payable by the lessee
under residual value guarantees;

IV. the exercise price of purchase options, if the lessee is
reasonably certain to exercise the options; and

V. payments of penalties for terminating the lease, if
the lease term reflects the exercise of an option to
terminate the lease.

The lease liability is presented as a separate line in
the Standalone Balance Sheet. The lease liability is
subsequently measured by increasing the carrying
amount to reflect interest on the lease liability (using the
effective interest method) and by reducing the carrying
amount to reflect the lease payments made. The Company
remeasures the lease liability (and makes a corresponding
adjustment to the related right-of-use asset) whenever:

I. the lease term has changed or there is a change in
the assessment of exercise of a purchase option,
in which case the lease liability is remeasured by
discounting the revised lease payments using a
revised discount rate.

II. the lease payments change due to changes in an
index or rate or a change in expected payment under
a guaranteed residual value, in which cases the lease
liability is remeasured by discounting the revised
lease payments using the initial discount rate (unless
the lease payments change is due to a change
in a floating interest rate, in which case a revised
discount rate is used).

III. a lease contract is modified, and the lease
modification is not accounted for as a separate
lease, in which case the lease liability is remeasured
by discounting the revised lease payments using a
revised discount rate.

The right-of-use assets are presented as a separate
line in the Standalone Balance Sheet. The right-of-use
assets are initially recognised at cost which comprises

of the initial measurement of the corresponding
lease liability, lease payments made at or before
the commencement day and any initial direct costs
less any lease incentives. They are subsequently
measured at cost less accumulated depreciation and
impairment losses. Whenever the Company incurs
an obligation for costs to dismantle and remove a
leased asset, restore the site on which it is located or
restore the underlying asset to the condition required
by the terms and conditions of the lease, a provision
is recognised and measured. The costs are included
in the related right-of-use asset, unless those costs
are incurred to produce inventories.

Right-of-use assets are depreciated using the
straight line method from the commencement date
over the shorter period of lease term or useful life of
the underlying asset. If a lease transfers ownership
of the underlying asset or the cost of the right-of-use
asset reflects that the Company expects to exercise
a purchase option, the related right-of-use asset is
depreciated over the useful life of the underlying
asset. The depreciation starts at the commencement
date of the lease.