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.

(iv) New and amended standards adopted by the
company

In May 2025, MCA notified amendments to Ind AS
21 - The Effects of Changes in Foreign Exchange Rates
(effective date April 1, 2025). Guidance on assessing
when a currency is exchangeable and determining the
exchange rate when it is not.

In August 2025, MCA notified the following amendments to:

• Ind AS 1: Presentation of Financial Statements (Effective Date:
April 1,2025) - Classification Criteria: Liabilities are classified as
current if the entity lacks a substantive right to defer settlement
for at least 12 months, existing as of the reporting date and
clarifies that only covenants complied with on or before the
reporting date affect current/non-current classification. Basis
Carve-out applies, the liability can be classified as non-current
if waiver is obtained before approval of financial statements

• Ind AS 7 & Ind AS 107: Supplier Finance Arrangements
(Effective Date: April 1,2025)

• Ind AS 7 (Cash Flows): Mandatory disclosure of the existence,
nature, and carrying amounts of supplier finance (reverse
factoring) arrangements, including payment due date ranges.

• Ind AS 107 (Financial Instruments): Adds these arrangements
as a specific factor to consider when evaluating concentration
of liquidity risk.

• Ind AS 12: International Tax Reform - Pillar Two Model Rules
(immediate and retrospective) - Mandatory Relief: Provides
a temporary exception from recognizing and disclosing
information about deferred tax assets and liabilities related
to OECD Pillar Two income taxes (top-up tax). Entities must
explicitly disclose that they have applied this mandatory relief.

The company has reviewed the new pronouncements and based in

its evaluation has determined that it does not have any significant

impact in these financial statements.

v) New and amended standards issued but not
effective

The Companies (Indian Accounting Standards) Second
Amendment Rules, 2025, notified on 13 August 2025,
include amendments that are effective for annual
reporting periods beginning on or after 1 April 2026:

• Ind AS 1 — Presentation of Financial Statements:
Further amendments on classification of liabilities
as current or non-current, including requirements
relating to breaches of loan covenants, grace
periods, and disclosure of related risks (paragraphs
74, 75, 75A and 76).

• Ind AS 10 — Events after the Reporting Period:
Consequential amendments aligning terminology
and treatment with Ind AS 1

• Ind AS 12 — Income Taxes: Certain disclosure
requirements relating to international tax reform
(Pillar Two model rules), including qualitative and
quantitative information on exposure to Pillar Two
income taxes are mandatory for interim reporting's.

• Ind AS 118 - 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. These do not have a material impact on the
financial statements.

The company is in the process of evaluating the
requirements of these amendments and their impact
on the financial statements. The impact, if any, will be
given effect to in the period of initial application.

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. The Company
considers 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. 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.

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 of
transaction 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.