2. Material Accounting Policies

2.1 Statement of Compliance

The Standalone Financial Statements of the Company have been prepared in compliance with Indian Accounting
Standards [Ind AS] notified under section 133 of the Companies Act, 2013 read with Rule 3 of the Companies [Indian
Accounting Standards] Rules, 2015 as amended and other relevant provisions of the Act and the guidelines issued by
Securities and Exchange Board of India. The Standalone Financial Statements of the Company for the year ended March
31,2025 were approved for issue in accordance with the resolution of the Board of Directors on May 29, 2025. Accounting
policies have been consistently applied except where newly issued accounting standard is initially adopted or a revision
to an existing accounting standard requires a change in accounting policy hitherto in use.

2.2 Basis of Preparation

The Standalone Financial Statements have been prepared on a historical cost basis, except for the following assets and
liabilities which have been measured at fair value:

- certain financial assets and liabilities, including derivative instruments, that are measured at fair value

- assets held for sale, if any

- defined benefit plan

- share-based payments

Further, the guidance notes / announcements issued by the Institute of Chartered Accountants of India [ICAI] are also
considered, wherever applicable, except to the extent where compliance with other statutory promulgations override the
same requiring a different treatment.

2.3 Presentation of Standalone Financial Statements

The Standalone Balance Sheet, the Standalone Statement of Profit and Loss, the Standalone Statement of Changes in
Equity and the Standalone Statement of Cash Flows are prepared and presented in the format prescribed in the Schedule
III to the Companies Act, 2013 ["the Act"]. The disclosure requirements with respect to items in the Standalone Balance
Sheet and Standalone Statement of Profit and Loss, as prescribed in the Schedule III to the Act, are presented by way of
notes forming part of the Standalone Financial Statements along with the other notes required to be disclosed under the
notified Accounting Standards.

2.4 Significant Accounting Judgements, Estimates and Assumptions

The preparation of the Standalone Financial Statements in conformity with Ind AS requires management to make
estimates, judgments and assumptions. These estimates, judgments and assumptions affect the application of
accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent liabilities at the date
of the Standalone Financial Statements and reported amounts of revenues and expenses during the period. Accounting
estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in
estimates are made as management becomes aware of changes in circumstances surrounding the estimates. Changes
in estimates are reflected in the Standalone Financial Statements in the period in which changes are made and, if material,
their effects are disclosed in the notes to the Standalone Financial Statements.

This note provides an overview of the areas that involved a higher degree of judgement or complexity and of items
which are more likely to be materially adjusted due to estimates and assumptions turning out to be different than those
originally assessed. Detailed information about each of these estimates and judgements is included in the relevant note.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised prospectively

The following are the key assumptions concerning the future, and other key sources of estimation uncertainty at the
end of the reporting period that may have a significant risk of causing a material adjustment to the carrying amounts of
assets and liabilities within the next financial year.

a] Useful life of Property, Plant and Equipment

Determination of the estimated useful lives of tangible assets and the assessment as to which components
of the cost may be capitalized. Useful lives of tangible assets are based on the life prescribed in Schedule II of
the Companies Act, 2013. In cases, where the useful lives are different from that prescribed in Schedule II, they
are based on technical advice, taking into account the nature of the asset, the estimated usage of the asset, the
operating conditions of the asset, past history of replacement, anticipated technological changes, manufacturers’
warranties and maintenance support.

b] Recognition and measurement of Defined Benefit Obligations

The Cost of the defined benefit plan and other post-employment benefits and the present value of such obligation
are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may
differ from actual developments in the future. These include the determination of the discount rate, future salary
increases, mortality rates and attrition rate. The discount rate is determined based on the prevailing market yields
of Indian Government Securities as at the balance sheet Date for the estimated term of the obligations. 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.

c] Recognition of Deferred Tax Assets / Liabilities

A deferred tax asset / liability is recognised for all the deductible temporary differences to the extent that it is
probable that taxable profit will be available against which the deductible temporary difference can be utilised.

d] Provisions or Contingent Liabilities

A provision is recognised when the Company has a present obligation [legal or constructive] as a result of past event
and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable
estimate can be made. If the effect of time value of money is material, provisions are discounted using a current
pre-tax rate that reflects, when appropriate, the risk specific to the liability. When discounting is used, the increase in
the provision due to the passage of time is recognised as a finance cost. These are reviewed at each balance sheet
date and adjusted to reflect the current best estimates.

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may,
but probably will not require an outflow of resources. When there is a possible obligation or a present obligation in
respect of which likelihood of outflow of resources is remote, no provision or disclosure is made.

e] Impairment of Financial Assets

When the fair values of financial assets and financial liabilities recorded in the Standalone Balance Sheet cannot
be measured based on quoted prices in active markets, their fair value is measured using valuation techniques
including the DCF model. The inputs to these models are taken from observable markets where possible, but where
this is not feasible, a degree of judgment 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.

f] Right of Use Assets

The Company has entered commercial property leases for its offices. The Company evaluates if an arrangement
qualifies to be a lease as per the requirements of Ind AS 116. Identification of a lease requires significant judgment.
The Company uses significant judgement in assessing the lease term and the applicable discount rate. The Company
has lease contracts which include extension and termination option, and this requires exercise of judgement by the
Company in evaluating whether it is reasonably certain whether to exercise the option to renew or terminate the
lease. The discount rate is generally based on the incremental borrowing rate specific to the lease period.

g] Impairment of investments in Subsidiary and Joint Venture

The Company reviews its carrying value of investments carried at cost [net of impairment, if any] annually, or more
frequently when there is an indication of impairment. Management inter alia considers various inputs such as
macro-economic environment, industry specific matters, financial projections and other relevant information for
purposes of such assessment.

h] Fair valuation of Employee Stock Appreciation Right [ESAR]

The fair valuation of the employee stock grants is based on the Black-Scholes model used for valuation of options.
Key assumptions made with respect to expected volatility includes share price, expected dividends and discount
rate, under this option pricing model.

i] Capitalisation of Borrowing Cost

Substantial period of time for the purpose of qualifying asset as per Ind AS 23- 'Borrowing Cost’, is set by the
Company as 12 months.

j] Impairment of Trade Receivables and other receivables.

The Company recognises loss allowances using the expected credit loss [ECL] model for the financial assets
which are not fair valued through profit or loss. Loss allowance for trade receivables with no significant financing
component is measured at an amount equal to lifetime ECL. For all other financial assets, expected credit losses
are measured at an amount equal to the 12-month ECL, unless there has been a significant increase in credit risk
from initial recognition in which case those are measured at lifetime ECL. The Company determines the allowance
for credit losses based on historical loss experience adjusted to reflect current and estimated future economic
conditions. The amount of ECLs [or reversal] that is required to adjust the loss allowance at the reporting date to
the amount that is required to be recognised is recognised as an impairment gain or loss in Standalone Statement
of Profit and Loss.

2.5 Functional and presentation currency

These Standalone Financial Statements are presented in Indian Rupees [INR], which is also the Company’s functional
currency. All amounts have been rounded-off to the nearest lakhs, unless otherwise indicated.

2.6 Property, Plant and Equipment

Items of property, plant and equipment are measured at cost, which includes capitalised borrowing costs, less
accumulated depreciation and accumulated impairment losses, if any.

Cost of an item of property, plant and equipment comprises its purchase price, including import duties and non-refundable
purchase taxes, after deducting trade discounts and rebates, any directly attributable cost of bringing the item to its
working condition for its intended use and estimated costs of dismantling and removing the item and restoring the site
on which it is located.

Advances paid towards the acquisition of property, plant and equipment outstanding at each Balance Sheet date is
classified as capital advances under other non-current assets and the cost of assets not ready to use before such date
are disclosed under 'Capital work-in-progress’. Subsequent expenditures relating to property, plant and equipment is
capitalized only when it is probable that future economic benefits associated with these will flow to the Company and
the cost of the item can be measured reliably. The cost and related accumulated depreciation are eliminated from the
financial statements upon sale or retirement of the asset.

Income and expenses related to the incidental operations, not necessary to bring the item to the location and condition
necessary for it to be capable of operating in the manner intended by management, are recognised in the Standalone
Statement of Profit and Loss.

If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted and
depreciated for as separate items [major components] of property, plant and equipment.

Any gain or loss on disposal of an item of property, plant and equipment is recognised in the Standalone Statement of
Profit and Loss.

Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the
expenditure will flow to the Company.

Capital work-in-progress includes cost of property, plant and equipment under installation / under development as at the
balance sheet date.

The assets’ residual values, useful lives and method of depreciation are reviewed at each reporting date and are adjusted
prospectively, if appropriate.

2.7 Inventories

Inventories are carried in the Standalone Balance Sheet as follows:

[a] Raw materials, Packing materials, Stock in Trade and Stores & Spares: At lower of cost and net realisable value.

[b] Work-in-progress-: At lower of cost of materials, plus appropriate production overheads and net realisable value.

[c] Finished Goods: At lower of cost of materials, plus appropriate production overheads and net realisable value.

Cost of inventories are determined on FIFO basis.

The cost of inventories has been computed to include all cost of purchases, cost of conversion and other related costs
incurred in bringing the inventories to the present location and condition. Slow and non-moving material, obsolescence,
defective inventories are duly provided for and valued at net realisable value. Net realisable value is the estimated selling
price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the
sale. 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 used are expected to be sold at or above cost. Goods and materials in transit
are valued at actual cost incurred upto the date of balance sheet. Materials and supplies held for use in the production
of inventories are not written down if the finished products in which they will be used are expected to be sold at or above
cost.

2.8 Impairment of non-financial assets

The Company assesses at each balance sheet date whether there is any indication that an asset or cash generating unit
[CGU] may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. The
recoverable amount is the higher of an asset’s or CGU’s net selling price or its value in use. Where the carrying amount of
an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable
amount.

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.

An impairment loss is recognised if the carrying amount of an asset or CGU exceeds its recoverable amount.
Impairment losses are recognised in the Standalone Statement of Profit and Loss.

An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount
that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.

2.9 Financial Instruments

The Company recognizes financial assets and financial liabilities when it becomes a party to the contractual provisions
of the instrument which gives rise to financial asset of one entity and a financial liability or equity instrument of another
entity.

a] Financial Assets

Initial Recognition and Measurement

All financial assets and liabilities are recognised at fair value on initial recognition except for trade receivables which
are initially measured at transaction price. Transaction costs that are directly attributable to the acquisition or issue
of financial assets and financial liabilities, which are not at fair value through profit or loss, are added to the fair value
on initial recognition.

Financial assets are classified, at initial recognition, as financial assets measured at fair value or as financial assets
measured at amortised cost.

Subsequent measurement

For the purpose of subsequent measurement, financial assets are classified in two broad categories:-

i] Financial assets at fair value

ii] Financial assets at amortised cost

Where assets are measured at fair value, gains and losses are either recognised entirely in the Standalone Statement
of Profit and Loss [i.e. fair value through profit or loss] or recognised in other comprehensive income [i.e. fair value
through other comprehensive income].

A financial asset is subsequently measured at amortised cost if it is held within a business model whose objective
is to hold the asset 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.

Equity instruments

The Company subsequently measures all equity investments [except investment in Subsidiary and Joint Venture
at fair value]. Where the Company’s management has elected to present fair value gains and losses on equity
investments in other comprehensive income, there is no subsequent reclassification of fair value gains and losses
to profit or loss following the derecognition of the investment. Dividends from such investments are recognised
in Standalone Statement of Profit and 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 profit or loss are recognised in other
gain/ losses in the Standalone Statement of Profit and Loss. Impairment losses [and reversal of impairment losses]
on equity investments measured at FVOCI are not reported separately from other changes in fair value.

Trade Receivables

Trade receivables are amounts due from customers for goods sold in the ordinary course of business. All financial
assets are recognised initially at fair value, plus in the case of financial assets not recorded at fair value through
profit or loss [FVTPL], transaction costs that are attributable to the acquisition of the financial asset. However, trade
receivables that do not contain a significant financing component are measured at transaction price. The Company
holds the trade receivables with the objective of collecting the contractual cash flows and therefore measures them
subsequently at amortised cost using the effective interest method, less allowance for excepted credit loss.

b] Equity investments in Subsidiary and Joint venture

The Company has accounted for its investment in its Subsidiary and Joint Venture at cost.

Derecognition

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 or in which the Company neither transfers
nor retain substantially all of the risks and rewards of ownership and it does not retain control of the financial asset.

Impairment of financial asset

For impairment of financial assets, Company applies expected credit loss [ECL] model. Following financial assets
and credit risk exposure are covered within the ECL model:

i] Financial assets that are debt instruments, and are measured at amortised cost e.g. loans, debt securities,
deposits, trade receivables and bank balance;

ii] Trade receivables or any contractual right to receive cash or another financial asset that result from
transactions that are within the scope of Ind AS 11 and Ind AS 18.

The Company follows 'simplified approach’ for recognition of impairment loss allowance on trade receivables
including receivables recognised under service concession arrangements.

The application of simplified approach does not require the Company to track changes in credit risk. Rather, it
recognises impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.
For recognition of impairment loss on other financial assets and risk exposure, the Company determines that
whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not
increased significantly, 12-month ECL is used to provide for impairment loss. However, if credit risk has increased
significantly, then the impairment loss is provided based on lifetime ECL. If in a subsequent period, credit quality of
the instrument improves such that there is no longer a significant increase in credit risk since the initial recognition,
then the entity reverts to recognising the impairment loss allowance based on 12 months ECL.

c] Financial liabilities

Initial recognition

The Company initially recognises borrowings, trade payables and related financial liabilities on the date on which
they are originated.

All other financial instruments [including regular-way purchases and sales of financial assets] are recognised on
the trade date, which is the date on which the Company becomes a party to the contractual provisions of the
instrument.

Subsequent measurement

Financial liabilities are subsequently carried at amortized cost using the effective interest method, except for
contingent consideration recognised in a business combination which is subsequently measured at fair value
through profit and loss. For trade and other payables maturing within one year from the balance sheet date, the
carrying amounts approximates fair value due to the near term [less than a year] maturity of these instruments.

Derecognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires.
When an existing financial liability is replaced by another from the same lender on substantially different terms,
or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the
derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying
amounts is recognised in the Standalone Statement of Profit and Loss.

Offsetting of financial instruments

Financial assets and financial liabilities are offset, and the net amount is reported in the Standalone Balance Sheet
if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on
a net basis, to realise the assets and settle the liabilities 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.

2.10 Derivative financial instruments

The Company enters into foreign currency forward contracts that is used to hedge risk of exposure of changes in
the fair value of creditors for capital goods on account of foreign currency rate movement.

These derivative contracts are not designated as hedges and accounted for at fair value through statement of profit
or loss. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the
fair value is negative. Any gains or losses arising from changes in the fair value of derivatives are taken directly to
standalone statement of profit and loss.

2.11 Leases

Company as a Lessee

The determination of whether an arrangement is [or contains] a lease is based on the substance of the arrangement
at the inception of the lease. The arrangement is, or contains, a lease if fulfilment of the arrangement is dependent
on the use of a specific asset or assets and the arrangement conveys a right to use the asset or assets, even if that
right is not explicitly specified in an arrangement.

The Company recognises right-of-use asset and a corresponding lease liability for all lease arrangements in which
the Company is a lessee, except for a short-term lease of 12 months or less and leases of low-value assets. For
short term lease and low-value asset arrangements, the Company recognises the lease payments as an operating
expense on straight-line basis over the lease term.

Certain lease arrangements include the options to extend or terminate the lease before the end of the lease
arrangement. Right-of- use assets and lease liabilities are measured according to such options when it is reasonably
certain that the Company will exercise these options. The right-of-use asset are recognised at the inception of the
lease arrangement at the amount of the initial measurement of lease liability adjusted for any lease payments made
at or before the commencement date of lease arrangement reduced by any lease incentives received, added by
initial direct costs incurred and an estimate of costs to be incurred by the Company in dismantling and removing
the underlying asset or restoring the underlying asset or site on which it is located.

The right-of-use assets are depreciated using the straight-line method from the commencement date over the
shorter of lease term or useful life of right-of- use asset. Estimated useful life of right-of-use assets is determined
based on useful life of property, plant and equipment. Right-of-use assets are tested for impairment whenever
there is an indication that their carrying value may not be recoverable. Impairment loss, if any is recognised in the
Standalone Statement of Profit and Loss.

The lease liability is measured at amortised cost, at the present value of the future lease payments. The lease
payments are discounted using the interest rate implicit in the lease arrangement or, if not readily determinable,
at the incremental borrowing rate in the country of domicile of such leases. Lease liabilities are remeasured with
corresponding adjustments to right-of-use assets to reflect any reassessment or lease modifications.

Company as a Lessor

Leases for which the Company is a lessor is classified as finance or operating lease. If the terms of the lease
arrangement transfers substantially all the risks and rewards of ownership to the lessee, such lease arrangement is

classified as finance lease. All other leases are classified as operating leases.

In case of sub-lease, the Company recognises investment in sub-lease separately in the financial statements. The
sub-lease is classified as a finance or operating lease by reference to the right-of-use asset arising from such lease
arrangement. For operating leases, rental income is recognised on a straight-line basis over the term of the lease
arrangement.