1.00 Summary of Material accounting policy information
This note provides a list of the Material accounting policies information adopted in the presentation of these financial
statements.
1.01 BASIS OF PREPARATION
(i) Compliance with Ind AS
The financial statements comply in all material aspects with Indian Accounting Standards ("Ind AS") notified under
Section 133 of the Companies Act, 2013 ("the Act") and relevant rules issued thereunder. In accordance with proviso to
the Rule 4A of the Companies (Accounts) Rules, 2014, the terms used in these financial statements are in accordance with
the definitions and other requirements specified in the applicable Accounting standards.
(ii) Authorisation of financial Statements
The financial statements were approved for issue by Board Of Directors at their meeting held on May 12, 2026.
(iii) Historical cost convention
The financial statements have been prepared on a historical cost basis, except for the following:
• certain financial assets and liabilities is measured at fair value; and
• defined benefit plans - fair value of plan assets less the present value of the defined benefit obligations.
1.02 FUNCTIONAL AND PRESENTATION CURRENCY
These financial statements are presented in Indian Rupees (INR), which is also the Company's functional currency. All
amounts disclosed in the financial statements and notes have been rounded off to the nearest lakhs, except where otherwise
indicated.
1.03 CURRENT VERSUS NON-CURRENT CLASSIFICATION
All assets and liabilities have been classified as current or non-current as per Company's normal operating cycle. Based on
the nature of operations, the Company has ascertained its operating cycle as twelve months for the purpose of current and
non-current classification of assets and liabilities.
1.04 USE OF JUDGEMENTS, ESTIMATES & ASSUMPTIONS
While preparing standalone financial statements in conformity with Ind AS, the management makes certain estimates and
assumptions that require subjective and complex judgments. These judgments affect the application of accounting policies
and the reported amount of assets, liabilities, income and expenses, disclosure of contingent liabilities at the statement of
financial position date and the reported amount of income and expenses for the reporting period. Financial reporting results
rely on our estimate of the effect of certain matters that are inherently uncertain. Future events rarely develop exactly as
forecasted and the best estimates require adjustments, as actual results may differ from these estimates under different
assumptions or conditions. The management continually evaluates these estimates and assumptions based on the most
recently available information.
Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods
affected. In particular, information about significant areas of estimation uncertainty and critical judgments in applying
accounting policies that have the most significant effect on the amounts recognized in the standalone financial statements
are as below:
Key sources of estimation uncertainty
a) Financial instruments; (Refer note 42)
When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based
on quoted prices in active markets, their fair value is measured using valuation techniques. The inputs for valuation
techniques are taken from observable markets where possible, but where this is not feasible, a degree of judgement
is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and
volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.
b) Useful lives of property, plant and equipment and intangible assets; (Refer note 1.06 & 1.07)
The Company uses its technical expertise along with historical and industry trends for determining the economic life of
an asset/component of an asset. The useful lives are reviewed by management periodically and revised, if appropriate.
In case of a revision, the unamortised depreciable amount is charged over the remaining useful life of an asset.
c) Valuation of inventories; (Refer note 1.10)
The Company estimates the net realisable value (NRV) of its inventories by taking into account estimated selling price,
estimated cost of completion, estimated costs necessary to make the sale, obsolescence considering the past trend.
Inventories are written down to NRV where such NRV is lower than their cost.
d) Assets and obligations relating to employee benefits; (Refer note 39)
The cost of the defined benefit plans, compensated absences and the present value of the defined benefit obligations
are based on actuarial valuation using the projected unit credit method. An actuarial valuation involves making various
assumptions that may differ from actual developments in the future. These interalia include the determination of the
discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its
long term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are
reviewed at each reporting date.
e) Evaluation of recoverability of deferred tax assets; (Refer note 8)
The extent to which deferred tax assets can be recognised is based on the assessment of the probability of the Company's
future taxable income against which the deferred tax assets can be utilised. The Company uses the judgement to
determine the amount of deferred tax that can be recognised based upon the likely timing and the level of future taxable
profits and business developments.
f) Contingencies. (Refer note 38)
Management judgement is required for assessing the possible outcomes of contingencies, claims and litigation against
the Company and estimating the possible outflow of resources, if any, in respect of contingencies, claim, litigations.
1.05 FOREIGN CURRENCY TRANSACTIONS
Transactions and balances
Monetary items
Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the
transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation
of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are generally recognised in
statement of profit and loss.
Non - Monetary items
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange
rates at the dates of the initial transactions.
1.06 PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment is stated at cost, less accumulated depreciation and accumulated impairment losses. The
initial cost of an asset comprises its purchase price, any costs directly attributable to bringing the asset into the location
and condition necessary for it to be capable of operating in the manner intended by management, the initial estimate of
any decommissioning obligation, if any. The purchase price is the aggregate amount paid and the fair value of any other
consideration given to acquire the asset.
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 company and the cost of the item can be
measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced.
All other repairs and maintenance are charged to statement of profit and loss during the reporting period in which they are
incurred.
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected
to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property,
plant and equipment 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.The residual values and useful lives of Property, Plant and Equipment are reviewed
at each financial year end, and changes, if any, are accounted prospectively.
Depreciation on Property, plant and equipment
Depreciation on Property, Plant & Equipment is provided on straight line method except Furniture and Fixtures. In accordance
with requirements prescribed under Schedule II of Companies Act, 2013, the Company has assessed the estimated useful
lives of its Property, Plant & Equipment and has adopted the useful lives and residual value as prescribed in Schedule II.
Furniture and Fixtures are depreciated on written down value basis.
In case of additions/deletions during the year, the depreciation is computed from the month in which such assets are put to
use and upto the previous month of sale or disposal as the case may be. In case of impairment, depreciation is provided on
the revised carrying amount over its remaining useful life.The estimated useful lives, residual values and depreciation method
are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective
basis.
All assets costing up to Rs. 10,000 (in ^ ) are fully depreciated in the year of capitalization.
Derecognition of Property, Plant and Equipment
An item of Property, Plant and Equipment is derecognised upon disposal or when no future economic benefits are expected
to arise from the continued use of the asset. Any gain or loss arising on derecognition of an item of Property, Plant and
Equipment 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.
1.07 INTANGIBLE ASSETS
Recognition and measurement
Intangible assets with finite useful lives that are acquired are recognised only if they are separately identifiable and the
Company expects to receive future economic benefits arising out of them. Such assets are stated at cost less accumulated
amortization and impairment losses. Intangible Assets with indefinite useful lives that are acquired separately are carried at
cost less accumulated amortisation and impairment losses.
Amortisation of Intangible Assets
Intangible assets with finite lives are amortised on straight line basis over their useful economic life and assessed for
impairment whenever there is an indication that the intangible asset may be impaired. The amortisation period and the
amortisation method for an intangible asset with a finite useful life are reviewed at each year end. The amortisation expense
on Intangible assets with finite lives and impairment loss is recognised in the Statement of Profit and Loss.
Derecognition of intangible assets
An intangible asset is derecognised on disposal, or when no future economic benefits are expected from use or disposal.
Gains or losses arising from derecognition of an intangible asset, measured as the difference between the net disposal
proceeds and the carrying amount of the asset, are recognised in statement of profit and loss when the asset is derecognised.
1.08 IMPAIRMENT OF ASSETS (Other than Financial Assets)
Carrying amount of tangible assets and intangible assets are tested for impairment whenever events or changes in
circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount
by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair
value less costs of disposal and value in use.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate
that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair
value less costs of disposal, recent market transactions are taken into account. If no such transactions can be identified, an
appropriate valuation model is used.
For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable
cash inflows which are largely independent of the cash inflows from other assets or Company's assets (cash-generating units).
Non- financial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment
at the end of each reporting period.
1.09 LEASES
As a Lessee
Operating Lease
The Company, as a lessee, recognizes a right-of-use asset and a lease liability for its leasing arrangements, if the contract
conveys the right to control the use of an identified asset. The contract conveys the right to control the use of an identified
asset, if it involves the use of an identified asset and the Company has substantially all of the economic benefits from use of
the asset and has right to direct the use of the identified asset. The cost of the right-of-use asset shall comprise of the amount
of the initial measurement of the lease liability adjusted for any lease payments made at or before the commencement
date plus any initial direct costs incurred. The right-of-use assets is subsequently measured at cost less any accumulated
depreciation, accumulated impairment losses, if any and adjusted for any remeasurement of the lease liability. The right-
of-use assets is depreciated using the straight-line method from the commencement date over the shorter of lease term or
useful life of right-of-use asset. The Company measures the lease liability at the present value of the lease payments that
are not paid at the commencement date of the lease. The lease payments are discounted using the interest rate implicit in
the lease, if that rate can be readily determined. If that rate cannot be readily determined, the Company uses incremental
borrowing rate.
Short-term leases and leases of low-value assets
The Company has elected not to recognise right-of-use assets and lease liabilities for short-term leases that have a lease term
ending within 12 months and the Company recognises the lease payments associated with these leases as an expense on a
straight-line basis over the lease term.
1.10 INVENTORIES
Inventories are valued at the lower of cost (determined on FIFO basis) and the net realizable value after providing for
obsolescence and other losses, where considered necessary. Cost includes all charges in bringing the goods to the point of
sale, including indirect taxes and other levies, transit insurance and receiving charges. Work-in-progress and Finished goods
include appropriate proportion of overheads and, where applicable.
1.11 CASH AND CASH EQUIVALENTS
The Company considers all highly liquid financial instruments, which are readily convertible into known amounts of cash that
are subject to an insignificant risk of change in value and having original maturities of three months or less from the date of
purchase, to be cash equivalents.
1.12 FINANCIAL INSTRUMENTS
Financial assets and financial liabilities are recognised when a Company becomes a party to the contractual provisions of the
instruments.
Initial Recognition and Measurement - Financial Assets and Financial Liabilities
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to
the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair
value through profit or loss and ancillary costs related to borrowings) are added to or deducted from the fair value of the
financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the
acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in the
Statement of Profit and Loss.
Classification and Subsequent Measurement: Financial Assets
The Company classifies financial assets as subsequently measured at amortised cost, fair value through other comprehensive
income ("FVTOCI") or fair value through profit or loss ("FVTPL") on the basis of following:
- the entity's business model for managing the financial assets and
- the contractual cash flow characteristics of the financial asset.
Amortised Cost:
A financial asset is classified and measured at amortised cost if both of the following conditions are met:
- the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual
cash flows 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.
FVTOCI:
A financial asset is classified and measured at FVTOCI if both of the following conditions are met:
- the financial asset is 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 and
interest revenue 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 profit or loss and recognised in other gains/ (losses). Interest
income from these financial assets is included in other income using the effective interest rate method.
FVTPL:
A financial asset is classified and measured at FVTPL unless it is measured at amortised cost or at FVTOCI.
All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value, depending
on the classification of the financial assets.
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.
Expected Credit Losses are measured through a loss allowance at an amount equal to:
- The 12-months expected credit losses (expected credit losses that result from those default events on the financial
instrument that are possible within 12 months after the reporting date);
or
- Full lifetime expected credit losses (expected credit losses that result from all possible default events over the life of the
financial instrument).
For trade receivables only, the Company applies the simplified approach permitted by Ind AS 109 Financial Instruments, which
requires expected lifetime losses to be recognised from initial recognition of the receivables. The Company uses historical
default rates to determine impairment loss on the portfolio of trade receivables. At every reporting date these historical
default rates are reviewed and changes in the forward-looking estimates are analysed. For other assets, the Company uses
12 month ECL to provide for impairment loss where there is no significant increase in credit risk. If there is significant increase
in credit risk full lifetime ECL is used.
Classification and Subsequent measurement: Financial Liabilities
The Company's financial liabilities include trade payables and other financial liabilities.
Financial Liabilities at FVTPL:
Financial liabilities are classified as at FVTPL when the financial liability is held for trading or are designated upon initial
recognition as FVTPL.
Gains or losses on financial liabilities held for trading are recognised in the Statement of Profit and Loss.
Other Financial Liabilities:
Other financial liabilities (including borrowings and trade and other payables) are subsequently measured at amortised cost
using the effective interest method.
The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest
expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments
(including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and
other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to
the net carrying amount on initial recognition.
Derecognition of Financial Assets and Financial Liabilities:
The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire,
or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and
rewards of ownership of the financial asset are transferred. If the Company enters into transactions whereby it transfers
assets recognised on its balance sheet, but retains either all or substantially all of the risks and rewards of the transferred
assets, the transferred assets are not derecognised.
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires.Financial
liability is also derecognised, when its terms are modified and the cash flows of the modified liability substantially different,
in which case a new financial liability based on modified terms is recognised at fair value.
Write-off:
The gross carrying amount of a financial asset is written off when there are no reasonable expectations of recovering a
financial asset in its entirety or a portion thereof. The Company individually makes an assessment with respect to the timing
and amount of write-off based on whether there is a reasonable expectation of recovery. The Company expects no significant
recovery from the amount written off. However, financial assets that are written off could still be subject to enforcement
activities in order to comply with the Company's procedures for recovery of amounts due.
Offsetting Financial Instruments:
Financial assets and liabilities are offset and the net amount is reported in the Balance Sheet where there is a legally
enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset
and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be
enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company or the
counterparty.
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