Note: 2 Material Accounting Policies

This note provides a list of the Material accounting policies adopted
in the preparation of these standalone financial statements. These
policies have been consistently applied to all the years presented,
unless otherwise stated.

2.1 Basis of Preparation

(i) Compliance with Ind AS

These standalone financial statements have been
prepared to comply in all material aspects with Indian
Accounting Standards (Ind AS) notified under Section 133
of the Companies Act, 2013 (the Act) [Companies (Indian
Accounting Standards) Rules, 2015] read with the National
Company Law Tribunal (NCLT), Kolkata order dated 19th
January 2018 as stated in note 2.4 below and other relevant
provisions of the Act.

(ii) Classification of current and non-current

All assets and liabilities have been classified as current or
non-current as per the Company's normal operating cycle
and other criteria set out in the Ind AS 1 - "Presentation of
Financial Statements" and Schedule Ill to the Companies
Act, 2013. Based on the nature of products and the time
between the acquisition of assets for processing and their
realization in cash and cash equivalents, the Company
has ascertained its operating cycle as 12 months for the
purpose of current/ non current classification of assets and
liabilities.

(iii) Historical cost convention

These financial statements have been prepared in
accordance with the generally accepted accounting
principles in India under the historical cost convention,
except for the following:

- certain financial assets and liabilities (including
derivative instruments) those are measured at fair
value.

- defined benefit plans - plan assets measured at fair
value.

2.2 Use of estimates

The preparation of financial statements in conformity with
the Ind AS specified under Section 133 of the Act, read with
Companies (Indian Accounting Standards) Rules, 2015, as
amended requires the management to make judgments,
estimates and assumptions that affect the reported amounts
of revenues, expenses, assets and liabilities and the disclosure
of contingent liabilities, at the end of the reporting period.
Although these estimates are based on management's best
knowledge of current events and actions, uncertainty about
these assumptions and estimates could result in outcomes
requiring a material adjustment to the carrying amounts of
assets and liabilities in future periods.

2.3 Property, Plant and Equipment and Depreciation

a) Freehold land is carried at historical cost. All other items of
Property, Plant and Equipment are stated at historical cost
less depreciation. Historical cost includes expenditure that
is directly attributable to the acquisition of the items.

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 Company and
the cost of the item can be measured reliably. The carrying
amount of any component accounted for as a separate
asset is derecognized when replaced. All other repairs and
maintenance are charged to Statement of Profit and Loss
during the reporting period in which they are incurred.

c) On transition to Ind AS, the Company has elected to
continue with the carrying value of its Property, Plant and
Equipment measured at the previous GAAP and use that
carrying value as the deemed cost of Property, Plant and
Equipment.

d) Depreciation is provided on straight line method to
allocate the cost of assets, net of their residual values,
over the estimated useful lives of the assets. Pursuant to
Notification of Schedule II of the Companies Act, 2013
becoming effective, the Company has adopted the useful
lives as per the lives specified for the respective Property,
Plant & Equipment in the Schedule II of the Companies Act,
2013. No depreciation is provided on freehold land.

e) Gains and losses on disposal of Property, Plant and
Equipment is recognized in the Statement of Profit and
Loss.

f) An impairment loss is recognized where applicable when
the carrying amount of Property, Plant and Equipment
exceeds its recoverable amount.

2.4 Goodwill, Other Intangible assets and amortization

a) Intangible assets are stated at cost of acquisition including

duties, taxes and expenses incidental to acquisition and
installation, net of accumulated depreciation. Recognition
of costs as an asset is ceased when the asset is complete
and available for its intended use.

b) On transition to Ind AS, the Company has elected to
continue with the carrying value of its intangible assets
measured at the previous GAAP and use that carrying
value as the deemed cost of intangible assets.

c) Intangible assets comprising of Trademark and computer
software are amortized on straight line method over a
period of twenty years and five years respectively.

d) Goodwill acquired on account of amalgamation is being
amortized in the Statement of Profit and Loss in line with
National Company Law Tribunal, Kolkata ("NCLT") order
dated 19 January 2018 on the basis of management's
estimate useful life of 20 years.

e) Gains and Losses on disposal of Intangible assets is
recognized in the Statement of Profit and Loss.

2.5 Impairment of assets

Assessment is done at each balance sheet date as to whether
there is any indication that an asset (Property, Plant and
Equipment and other assets) may be impaired. If any such
indication exists, an estimate of the recoverable amount of
the asset/ cash generating unit is made. Assets whose carrying
value exceeds their recoverable amount are written down to
their recoverable amount. Recoverable amount is higher of an
asset's or cash generating unit's net selling price and its value
in use. Assessment is also done at each balance sheet date
as to whether there is any indication that an impairment loss
recognized for an asset in prior accounting periods may no
longer exist or may have decreased/ increased. An impairment
loss is recognised in the Statement of Profit and Loss as and
when the carrying value of an asset exceeds its recoverable
amount. Where an impairment loss subsequently reverses, the
carrying value of the asset is increased to the revised estimate
of its recoverable amount so that the increased carrying value
does not exceed the carrying value 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 in the Statement of Profit and
Loss immediately.

2.6 Investments in subsidiaries

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
and written down immediately to its recoverable amount.
On disposal of investments in subsidiaries, the difference

between net disposal proceeds and the carrying amounts are
recognised in the Statement of Profit and Loss.

The Company considered potential indicators of impairment
for its investment in subsidiaries. The recoverable value of the
investments is higher of the value in use (VIU) of the underlying
business or fair value less cost to sell. The Company has used
the fair value method for computing the recoverable value.
The outcome of the assessment as on March 31, 2025 did not
results in recognition of any impairment for investment held in
subsidiaries

2.7 Financial assets

The financial assets are classified in the following categories:

a) financial assets measured at amortised cost,

b) financial assets measured at fair value through Profit and
Loss (FVTPL), and

c) financial assets measured at fair value through other
comprehensive income (FVOCI).

The classification of financial assets depends on the Company's
business model for managing financial assets and the contractual
terms of the cash flow. For assets measured at fair value, gains
and losses will either be recorded in profit or loss or other
comprehensive income. For investments in equity instruments
that are not held for trading, this will depend on whether the
Company has made an irrevocable election at the time of initial
recognition to account for the equity investment at FVOCI. The
Company reclassifies debt investments when and only when its
business model for managing those assets changes.

Regular purchases and sales of financial assets are recognised on
trade-date, being the date on which the Company commits to
purchase or sale the financial asset.

At initial recognition, the financial assets (excluding trade
receivables which do not contain a significant financing
component) are measured at its fair value plus transaction costs
that are directly attributable to the acquisition of the financial
asset. Transaction costs of financial assets carried at FVTPL are
expensed in the profit or loss. Financial assets are not reclassified
subsequent to their recognition except if and in the period the
Company changes its business model for arranging financial
assets.

Financial assets measured at amortised cost

Assets that are held for collection of contractual cash
flows where those cash flows represent solely payments of
principal and interest are measured at amortised cost. After
initial measurement, such financial assets are subsequently
measured at amortised cost using the effective interest rate
method. Interest income from these financial assets is included
in Other Income using the effective interest rate method. Any
gain or loss arising on derecognition is recognised directly in

profit or loss and presented in other gains/ (losses). The losses
arising from impairment are recognised in the Statement of
Profit and Loss.

Financial instruments measured at FVTPL

Assets that do not meet the criteria for amortised cost or FVOCI
are measured at fair value through Profit and Loss. Financial
instruments included within FVTPL category are measured
initially as well as at each reporting period at fair value pl us
transaction costs as applicable. Fair value movements are
recorded in Statement of Profit and Loss. Investments in units
of mutual funds, alternate investment funds (AIF) other than
equity (not held for trading) and debentures are accounted for
at fair value and the changes in fair value are recognised in the
Statement of Profit and Loss.

Financial assets at FVOCI

Financial assets are measured at FVOCI if these financial
assets are held within a business model whose objective
is achieved by both collecting contractual cash flows and
selling financial assets and the contractual terms of the
financial asset give rise on specified dates to cash flows that
are solely payments of principal and interest on the principal
amount outstanding. Movements in the carrying amount are
taken through OCI, except for the recognition of impairment
gains or losses, interest income and foreign exchange gains
and losses which are recognised in Profit and Loss. When the
financial asset is derecognised, the cumulative gain or loss
previously recognised in OCI is reclassified from equity to
retained earnings. Interest income from these financial assets
is included in other income using the effective interest rate
method. Foreign exchange gains and losses are presented in
other gains/ (losses) and impairment expenses are presented
as separate line item in Statement of Profit and Loss.

Equity instruments

The Company measures all equity investments at fair value.
The Company's management has elected to present fair value
gains and losses on equity investments in other comprehensive
income, and accordingly there is no subsequent reclassification
of fair value gains and losses to profit or loss on de-recognition.
Dividends from such investments are recognised in profit or
loss as other income when the Company's right to receive
payments is established.

Changes in the fair value of financial assets at fair value through
OCI are recognised in changes in fair value of FVOCI equity
instrument. [Impairment losses (and reversal of impairment
losses) on equity investments measured at FVOCI are not
reported separately from other changes in fair value.]
De-recognition of financial asset

The Company de-recognises a financial asset when the
contractual rights to the cash flows from the financial assets
expire or it transfers the financial assets and such transfer

qualifies for derecognition under Ind AS 109:"Financial
Instruments".

Where the entity has transferred an asset, the Company
evaluates whether it has transferred substantially all risks and
rewards of ownership of the financial asset. In such cases,
the financial asset is derecognised. Where the entity has not
transferred substantially all risks and rewards of ownership of
the financial asset, the financial asset is not derecognised.
Where the entity has neither transferred a financial asset
nor retains substantially all risks and rewards of ownership
of the financial asset, the financial asset is derecognised if
the Company has not retained control of the financial asset.
Where the Company retains control of the financial asset, the
asset is continued to be recognised to the extent of continuing
involvement in the financial asset.

Impairment of financial assets

The Company assesses on a forward looking basis the expected
credit losses associated with its assets carried at amortised cost.
The impairment methodology applied depends on whether
there has been a significant increase in credit risk. Except for
Trade Receivables, where in the simplified approach of lifetime
expected credit losses is recognised from initial recognition
of the receivables as required by Ind AS 109: "Financial
Instruments". Impairment loss allowance recognised /reversed
during the year is charged/written back to Statement of Profit
and Loss.

2.8 Financial Liabilities
Borrowings

Borrowings are initially recognized at fair value, net oftransaction
costs incurred. Borrowings are subsequently measured at
amortised cost. Any difference between the proceeds (net of
transaction costs) and the redemption amount is recognised
in profit or loss over the period of the borrowings using the
effective interest method. Fees paid on the establishment of
loan facilities are recognized as transaction cost of the loan
to the extent that it is probable that some or all of the facility
will be drawn down. In this case, the fee is deferred until the
draw down occurs. To the extent there is no evidence that it
is probable that some or all of the facility will be drawn down,
the fee is capitalised as a prepayment for liquidity services and
amortised over the period of the facility to which it relates.
Borrowings are removed from the balance sheet when the
obligation specified in the contract is discharged, cancelled
or expired. The difference between the carrying amount of a
financial liability that has been extinguished or transferred to
another party and the consideration paid, including any non¬
cash assets transferred or liabilities assumed, is recognised in
profit or loss as other gains/(losses).

Borrowings are classified as current liabilities unless the
Company has an unconditional right to defer settlement of

the liability for at least 12 months after the reporting period.
Where there is a breach of a material provision of a long-term
loan arrangement on or before the end of the reporting period
with the effect that the liability becomes payable on demand
on the reporting date, the entity does not classify the liability
as current, if the lender agreed, after the reporting period and
before the approval of the financial statements for issue, not to
demand payment as a consequence of the breach. A financial
liability (or a part of -financial liability) is de-recognised from
Company's balance sheet when obligation specified in the
contract is discharged or cancelled or expired.

2.9 Inventories

Raw materials, Stores and Spares parts and components are
valued at cost (cost being determined on weighted average
basis) or at net realizable value, whichever is lower. Semi¬
finished goods and work-in-progress are valued at raw
materials cost plus labour and overheads apportioned on an
estimated basis depending upon the stages of completion or
at net realizable value, whichever is lower. Finished goods are
valued at cost or at net realizable value, whichever is lower.
Cost includes all direct cost and applicable manufacturing
and administrative overheads. Net realizable value is the
estimated selling price in the ordinary course of business,
less the estimated cost of completion and the estimated cost
necessary to make the sale.

2.10 Employee Benefit

a) Defined Contribution Plans

Payments to defined contribution plans are charged as an
expense as they fall due. Payments made to state managed
retirement benefit schemes are dealt with as payments
to defined contribution schemes where the Company's
obligations under the schemes are equivalent to those
arising in a defined contribution benefit scheme.

b) Defined Benefit Plans

For defined benefit retirement schemes the cost of
providing benefits is determined using the Projected Unit
Credit Method, with actuarial valuation being carried out at
each balance sheet date. Re-measurement gains and losses
of the net defined benefit liability/ (asset) are recognised
immediately in other comprehensive income. The service
cost and net interest on the net defined benefit liability/
(asset) is treated as a net expense within employment
costs. Past service cost is recognised as an expense when
the plan amendment or curtailment occurs or when any
related restructuring costs or termination benefits are
recognised, whichever is earlier. The retirement benefit
obligation recognised in the balance sheet represents the
present value of the defined-benefit obligation as reduced
by the fair value plan assets.

c) Compensated Absences

Accrued liability in respect of leave encashment benefit
on retirement is accounted for on the basis of actuarial
valuation as at the year end and charged in the Statement

of Profit and Loss every year. Compensated absences
benefits comprising of entitlement to accumulation of Sick
Leave is provided for based on actuarial valuation at the
end of the year. Actuarial gains and losses are recognized
immediately in the Statement of Profit and Loss.
Accumulated Compensated Absences, which are expected
to be availed or encashed or contributed within the 12
months from the end of the year are treated as short term
employee benefits and the balance/ expected to availed or
encashed or contributed beyond 12 months from the year
end are treated as long term liability.

d) Other Short Term Employee Benefits

Short Term Employee Benefits are recognized as an
expense as per the Company's schemes based on expected
obligation on an undiscounted basis.

2.11 Revenue Recognition

Revenue from contracts with customers are recognised
when the control over the goods or services promised in
the contract are transferred to the customer. The amount
of revenue recognised depicts the transfer of promised
goods and services to customers for an amount that reflects
the consideration to which the Company is entitled to in
exchange for the goods and services. Revenue from sale of
products is recognised when the control over such goods
have been transferred, being when the goods are delivered
to the customers. Delivery occurs when the products
have been shipped or delivered to the specific location as
the case may be, risks of loss have been transferred to the
customers, and either the customer has accepted the goods
in accordance with the sales contract or the acceptance
provisions have lapsed or the Company has objective
evidence that all criteria for acceptance have been satisfied.
Revenue from these sales are recognized based on the
price specified in the contract, which is fixed. No element
of Significant financing is deemed present as the sales are
made against the receipt of advance or with an agreed
credit period (in a very few cases) of upto 90 days, which
is consistent with the market practices. A receivable is
recognised when the goods are delivered as this is the point
in time that the consideration is unconditional because only
passage of time is required before payment is done.

2.12 Other Income

Interest income from financial assets at fair value through profit or
loss is disclosed as interest income within other income. Interest
income on financial assets at amortised cost and financial assets
at FVOCI is calculated using the effective interest method and is
recognised in the Statement of Profit and Loss as part of other
income.

Interest income is calculated by applying the effective interest
rate to the gross carrying amount of a financial asset except
for financial assets that subsequently become credit-impaired.
For credit impaired financial assets, the effective interest rate is
applied to the net carrying amount of the financial asset (after
deduction of the loss allowance). Dividends are received from

financial assets at fair value through profit or loss and at FVOCI.
Dividend income is recognised when the right to receive
dividend is established.

Export incentives are accounted as income in the Statement of
Profit and Loss when no Significant uncertainty exists regarding
the collectability.

2.13 Derivative Instruments

The Company uses derivative financial instruments such
as foreign exchange contracts to hedge its exposure to
movements in foreign exchange rates relating to the
underlying transactions. Derivatives are initially recognised
at fair value on the date a derivative contract is entered into
and are subsequently re-measured to their fair value and
resulting gain or loss is recognized in the Statement of Profit
and Loss at the end of each reporting period. Any profit
or loss arising on cancellation of derivative instruments is
recognized as income or expense for the period.

2.14 Taxation

The income tax expense or credit for the period is the tax
payable on the current period's taxable income based on
the applicable income tax rate adjusted by changes in
deferred tax assets and liabilities attributable to temporary
differences.

Current tax is determined as the amount of tax payable in
respect of taxable income for the year based on the basis
of the tax laws enacted or substantively enacted at the
end of the reporting period. Management periodically
evaluates positions taken in tax returns with respect to
situations in which applicable tax regulation is subject to
interpretation and considers whether it is probable that a
taxation authority will accept an uncertain tax treatment.
The Company measures its tax balances either based on the
most likely amount or the expected value, depending on
which method provides a better prediction of the resolution
of the uncertainty. Deferred income tax is provided in full
using the liability method, on temporary differences arising
between the tax bases of assets and liabilities and their
carrying amounts in the financial statements. Deferred
income tax is determined using tax rates (and laws) that have
been enacted or substantially enacted by the end of the
reporting period and are expected to apply when the related
deferred income tax asset is realised or the deferred income
tax liability is settled. Deferred tax assets are recognised for
all deductible temporary differences and unused tax losses
only if it is probable that future taxable amounts will be
available to utilise those temporary differences and losses.
Deferred tax assets and liabilities are offset when there is
a legally enforceable right to offset current tax assets and
liabilities and when the deferred tax balances relate to the
same taxation authority. Current tax assets and tax liabilities
are offset where the entity has a legally enforceable right to
offset and intends either to settle on a net basis, or to realise
the asset and settle the liability simultaneously. Current
and deferred tax is recognised in profit or loss, except
to the extent that it relates to items recognised in other
comprehensive income or directly in equity. In this case, the

tax is also recognised in other comprehensive income or
directly in equity, respectively.

2.15 Borrowing Cost

General and specific borrowing costs that are directly
attributable to the acquisition, construction or production
of a qualifying asset are capitalised during the period of
time that is required to complete and prepare the asset for
its intended use or sale. Qualifying assets are assets that
necessarily take a substantial period of time to get ready
for their intended use or sale. Investment income earned on
the temporary investment of specific borrowings pending
their expenditure on qualifying assets is deducted from the
borrowing costs eligible for capitalisation. Other borrowing
costs are expensed in the period in which they are incurred.