1B. MATERIAL ACCOUNTING POLICIES:

The material accounting policies applied by the Company in the preparation of its standalone financial statements are listed below.
Such accounting policies have been applied consistently to all the periods presented in these standalone financial statements,
unless otherwise indicated.

a. Statement of compliance

The standalone financial statements comply in all material respects with the Indian Accounting Standards (referred to as "Ind
AS") notified under Section 133 of the Companies Act, 2013 ('Act'), read together with the Companies (Indian Accounting
Standards) Rules, 2015 and other relevant provisions of the Act, as amended from time to time.

b. New and amended standards

New standards or amendments adopted by the Company

The Ministry of Corporate Affairs vide notification dated May 7, 2025 and August 13, 2025 notified the Companies (Indian
Accounting Standards) Amendment Rules, 2025 and Companies (Indian Accounting Standards) Second Amendment Rules,
2025, respectively, which amended certain accounting standards (see below), and are effective for annual reporting periods
beginning on or after April 1, 2025:

(i) Classification of Liabilities as Current or Non-current and Non-current Liabilities with Covenants - Amendments to
Ind AS 1

(ii) Supplier Finance Arrangements - Amendments to Ind AS 7 and Ind AS 107

(iii) International Tax Reform - Pillar Two Model Rules - Amendments to Ind AS 12

(iv) Lack of exchangeability - Amendments to Ind AS 21

New standards or amendments not yet adopted by the Company

(i) Classification of Liabilities as Current or Non-current and Non-current Liabilities with Covenants - Amendments to Ind
AS 1 - This amendment also includes specific provisions that will take effect for reporting periods beginning on or after
April 1, 2026

These amendments did not have any material impact on the amounts recognised in prior periods and are not expected to
significantly affect the current or future periods.

c. Basis of preparation

The standalone financial statements are prepared in accordance with the historical cost convention, except for certain assets
and liabilities that are measured at fair values at the end of each reporting period, as explained in the accounting policies.
The standalone financial statements are prepared in Indian rupees and all amounts are rounded off to the nearest crores
unless otherwise stated.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date, regardless of whether that price is directly observable or estimated using
another valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the
characteristics of the asset or liability if market participants would take those characteristics into account when pricing
the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these standalone
financial statements is determined on such a basis, except measurements that have some similarities to fair value but are not
fair value, such as net realisable value in Ind AS 2 - Inventories or value in use in Ind AS 36 - Impairment of Assets.

In addition, for financial reporting purposes, fair value measurements are categorised into Level 1, 2 or 3 based on the
degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value
measurement in its entirety, which are described as follows:

• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can
access at the measurement date;

• Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability,
either directly or indirectly; and

• Level 3 inputs are unobservable inputs for the asset or liability.

The preparation of standalone financial statements in conformity with Ind AS requires management to make
judgements, estimates and assumptions (such estimates and judgements are reviewed every year) that affect the application

of the accounting policies and the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities
at the date of the standalone financial statements, and the reported amounts of revenues and expenses during the year.
Actual results could differ from those estimates. The estimates and underlying assumptions are reviewed on an ongoing
basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects
only that period; they are recognised in the period of the revision and future periods if the revision affects both current and
future periods.

All assets and liabilities have been classified as current or non-current as per Company's normal operating cycle and
other criteria set out in Schedule III to the Companies Act 2013 and Ind AS 1 - Presentation of Financial Statements which is
based on the nature of businesses and the time elapsed between deployment of resources and the realisation in cash and cash
equivalents. The Company has considered an operating cycle of 12 months.

d. Going concern

The directors have, at the time of approving the standalone financial statements, a reasonable expectation that the Company
has adequate resources to continue as a going concern for the foreseeable future. Thus, they continue to adopt the going
concern basis of accounting in preparing the standalone financial statements.

e. Revenue recognition

Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer
at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or
services. The Company has generally concluded that it is the principal in its revenue arrangements, because it typically
controls the goods or services before transferring them to the customer.

Sale of Products

Revenue from sale of goods is recognised at the point in time when control of the products is transferred to the customer,
generally on delivery of the products and there are no unfulfilled obligations. Delivery occurs when the products have
been shipped and delivered to the specific location, as the case may be, the risks of loss has been transferred, and either the
customer has accepted the products in accordance with the sales contract, or the Company has objective evidence that all
criteria for acceptance have been satisfied.

Revenue towards satisfaction of a performance obligation is measured at the amount of transaction price (net of variable
consideration) allocated to that performance obligation. The transaction price of products sold is net of variable consideration
on account of discounts, incentives and schemes offered by the Company. Revenue from these sales is recognised based on
the price specified in the contract, net of the volume and price discounts. Amount of volume discounts payable to customers
in relation to sales made are calculated until the end of the reporting period. No element of financing is deemed present as the
sales are generally made with a credit term of 30-60 days, which is consistent with market practice. A receivable is recognised
when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of
time is required before the payment is due.

The Company does not adjust the transaction prices for any time value of money in case of contracts where the period
between the transfer of the promised goods or services to the customer and payment by the customer does not exceed one
year.

Variable consideration

If the consideration in a contract includes a variable amount, the Company calculates the amount of consideration to which it
will be entitled in exchange for transferring the products to the customer. The variable consideration is calculated at contract
inception and constrained until it is highly probable that a significant revenue reversal in the amount of cumulative revenue
recognised will not occur when the associated uncertainty with the variable consideration is subsequently resolved.

Some contracts for the sale of products provide customers with volume rebates, discounts, incentives, etc. These give rise to
variable consideration.

Sale of Services

The Company provides annual maintenance and extended warranty services that are sold separately. Revenue from services
rendered over a period of time, such as annual maintenance contracts, are recognised on a straight line basis over the period
or as per the terms of relevant contractual agreements / arrangements. The Company recognizes revenue from sales of such
services over time, because the customer simultaneously receives and consumes the benefits provided by the Company over
a period of time.

Interest Income

Interest income is accrued on time basis, by reference to the principal outstanding and at the effective interest rate applicable,
which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that
asset's net carrying amount on initial recognition.

f. Property, plant and equipment

Freehold land is carried at historical cost. All other items of Property, plant and equipment are stated at cost of acquisition

or construction less accumulated depreciation and impairment, if any. Historical cost includes expenditure that is directly
attributable to the acquisition of the items.

Cost is inclusive of inward freight, duties and taxes and incidental expenses related to acquisition. In respect of major projects
involving construction, related pre-operational expenses form part of the value of assets capitalised.

Properties in course of construction for production, supply or administrative purposes, or for purposes not yet determined,
are carried at cost, less any recognised impairment loss. Cost includes professional fees and, for qualifying assets, borrowing
costs capitalised in accordance with Company's policy.

Depreciation on property, plant and equipment has been provided on the straight-line method less residual values as per the
useful life prescribed in Schedule II to the Companies Act, 2013 except in respect of the tools and moulds, in whose case the
life of the assets has been assessed between 3-8 years 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, etc. Depreciation commences when the assets are ready for
their intended use.

Freehold land is not depreciated. 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.

The estimated useful lives of property, plant and equipment of the Company are as follows:

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 the statement of profit and loss.

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 property, plant and equipment not ready to use are
disclosed under 'Capital work-in-progress'.

On transition to Ind AS, the Company had chosen to carry forward previous GAAP carrying amount and accordingly the net
carrying amount on transition date was considered as the deemed cost.

g. Investment property

Investment property are properties held to earn rentals and/or for capital appreciation (including property under construction
for such purposes). Investment properties are measured initially at cost, including transaction costs. Subsequent to initial
recognition, investment properties are measured in accordance with Ind AS 16 - Property, Plant and Equipment requirement
for cost model, other than those that meet the criteria to be classified as held for sale (or are included in a disposal group that
is classified as held for sale) in accordance with Ind AS 105 - Non-current Assets Held for Sale and Discontinued Operations.

An investment property is derecognised upon disposal or when the investment property is permanently withdrawn from use
and no future economic benefits are expected from the disposal. Any gain or loss arising on de-recognition of the property
(calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in statement
of profit and loss in the period in which the property is derecognised.

h. Intangible assets other than goodwill

Intangible assets that the Company acquires separately and from which it expects future economic benefits are capitalised
upon acquisition and measured initially at cost comprising the purchase price (including import duties and non-refundable
taxes) and directly attributable costs to prepare the asset for its intended use.

Internally generated assets arising from development is recognised. All directly attributable expenditure incurred to prepare
the asset for its intended use are recognised as the cost of such assets.

Research expenditure is recognised as an expense when it is incurred. Development costs are capitalised only after, among
other factors, the technical and commercial feasibility of the asset for sale or use has been established. All directly attributable
expenditure incurred to prepare the asset for its intended use are recognised as the cost of such assets.

Internally generated brands, websites and customer lists are not recognised as intangible assets.

The useful life of an intangible asset is considered finite where the rights to such assets are limited to a specified period
of time by contract or law (e.g., non-compete agreement) or the likelihood of technical, technological obsolescence (e.g.,
computer software) or commercial obsolescence.

Intangible assets that have finite lives are amortised over their estimated useful lives by the straight-line method unless it is
practical to reliably determine the pattern of benefits arising from the asset. An intangible asset with an indefinite useful life
is not amortised.The estimated useful lives of intangible assets of the Company are as follows:

Amortisation expenses, impairment losses and reversal of impairment losses are taken to the statement of profit and loss.
Thus, after initial recognition, an intangible asset is carried at its cost less accumulated amortisation and / or impairment
losses.

The useful lives of intangible assets are reviewed annually to determine if a reset of such useful life is required for assets with
finite lives and to confirm that business circumstances continue to support an indefinite useful life assessment for assets so
classified. Based on such review, the useful life may change or the useful life assessment may change from indefinite to finite.
The impact of such changes is accounted for as a change in accounting estimate.

An intangible asset is derecognised on disposal or when no future economic benefits are expected from use or disposal. Gains
or losses from derecognition are measured as the difference between the net disposal proceeds and the carrying amount of
the assets, and are recognised in the statement of profit or loss when the asset is derecognised.

On transition to Ind AS, the Company had chosen to carry forward previous GAAP carrying amount and accordingly the net
carrying amount on transition date was considered as the deemed cost.

i. Impairment of tangible and intangible assets

At the end of each reporting period, the Company reviews the carrying amounts of its tangible and intangible assets to
determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists,
the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). When it is
not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the
cash-generating unit (CGU) to which the asset belongs.

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment at least
annually, and whenever there is an indication that the asset may be impaired.

Recoverable amount is the higher of 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 for which the estimates of future cash flows have not been
adjusted. In assessing the fair value less costs of disposal, recent market transactions are taken into account.

If the recoverable amount of an asset (or CGU) is estimated to be less than it's carrying amount, the carrying amount of the
asset (or CGU) is reduced to its recoverable amount. An impairment loss is recognised immediately in the statement of profit
and loss.

When an impairment loss subsequently reverses, the carrying amount of the asset (or a CGU) is increased to the revised
estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that
would have been determined had no impairment loss been recognised for the asset (or CGU) in prior years. A reversal of an
impairment loss is recognised immediately in the statement of profit and loss.

j. Foreign currency transactions

Items included in the standalone financial statements are measured using the currency of the primary economic environment in
which the entity operates ('the functional currency⁷). The functional and presentation currency of the Company is Indian Rupee.
Foreign currency transactions are translated into the functional currency using the exchange rate prevailing on the date of the
respective transactions. Foreign exchange gains and losses arising on foreign currency transactions settled during the year
are recognised in the statement of profit and loss.

At each reporting date, monetary assets and liabilities that are denominated in foreign currencies are translated at the rates
prevailing at that date.

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. Non-monetary items measured at fair value in a foreign currency are translated
using the exchange rates at the date when the fair value is determined.

Exchange differences arising on settlement or translation of monetary items are recognized as income or expense in the
period in which they arise.

k. Derivatives

The Company uses derivative financial instruments, primarily foreign exchange forward contracts and currency swaps
to manage its exposure to foreign exchange risks and commodity forward contracts to manage the price risk associated
with anticipated purchase transactions or purchased inventory. Derivatives are initially recognised at fair value and are
subsequently re-measured to their fair value at the end of each reporting period. Derivatives are carried as financial assets
when the fair value is positive and as financial liabilities when the fair value is negative. The resulting gains / losses is
recognised in the statement of profit and loss.

l. Investment in subsidiaries and associate

Investments in subsidiaries and associate is carried at cost, less accumulated impairment losses, if any. Where an indication
of impairment exists, the carrying amount of investment is assessed. An impairment provision is recognised for the amount
by which the carrying amount exceeds its recoverable amount. Recoverable amount is the higher of its fair value less costs
of disposal and its value in use. On disposal of such investments, difference between the net disposal proceeds and carrying
amount is recognised in the statement of profit and loss.

m. Inventories

Inventories are valued at the lower of cost and net realisable value after providing cost of obsolescence, if any. Costs
of inventories are determined using weighted average method. However, materials and other items held for use in the
production of inventories are not written down below cost if the finished products in which they will be incorporated are
expected to be sold at or above cost. The comparison of cost and net realizable value is made on an item-by-item basis. Cost
comprises all costs of purchase, duties, taxes (other than those subsequently recoverable from tax authorities) and all other
costs incurred in bringing such inventories to its present location and condition and includes, where applicable, appropriate
overheads based on normal level of activity. Net realisable value represents the estimated selling price for inventories less
all estimated costs of completion and costs necessary to make the sale. Inventory of scrap materials have been valued at net
realizable value.

Cost of finished goods and work-in-progress includes direct labour and an appropriate share of fixed and variable production
overheads. Fixed production overheads are allocated on the basis of normal capacity of production facilities.

Provisions are made to cover slow moving and obsolete items based on historical experience of utilisation on a product
category basis, which involves individual businesses considering their product lines and market conditions. Obsolete,
slow moving and defective inventories are identified from time to time and, where necessary, a provision is made for such
inventories.

n. Employee benefits

(i) Short-term employee benefits:

A liability is recognised for benefits accruing to employees in respect of wages and salaries. Liabilities for short-term
employee benefits that are expected to be settled wholly within 12 months after the end of the period in which the
employees render the related service are recognised in respect of employees' services up to the end of the reporting
period and are measured at the amounts expected to be paid when the liabilities are settled. Liabilities recognised in
respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid
in exchange for the related service.

(ii) Post-employment benefits
Defined Contribution Plans:

Contribution payable for provident fund, pension and superannuation fund, which are defined contribution plans are
recognised as an employee benefits expense in the statement of profit and loss.The Company has no obligation, other
than the contribution payable to the provident fund and superannuation fund. The superannuation liability of the
Company is funded, which is managed by a separate trust set up by the Company.

Defined Benefit Plans:

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees. The
plan provides for a lump sum payment to vested employees at retirement, death while in employment or on termination
of employment of an amount based on the respective employee's salary and the tenure of the employment. The liability
in respect of gratuity is recognised in the books of accounts based on actuarial valuation by an independent actuary at
each balance sheet date using projected unit credit method. The gratuity liability of the Company is funded, which is
managed by separate trust set up the Company.

Re-measurement gains and losses is recognised through other comprehensive income for gratuity and statement of
profit and loss for leave encashment and sick leave in the period in which they occur.

Re-measurement recognised in other comprehensive income is reflected in retained earnings and is not reclassified to
profit and loss. Net interest is calculated by applying the discount rate at the beginning of the period to the net defined
benefit liability or asset. Defined benefit costs are categorised as follows:

• service cost (including current service cost, past service cost, as well as gains and losses on curtailments and
settlements);

• net interest expense or income; and

• re-measurement

The Company presents the first two components of defined benefit costs in the statement of profit and loss in the line
item 'Employee benefits expense'.

The retirement benefit obligation recognised in the balance sheet represents the actual deficit or surplus in the
Company's defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any
economic benefits available in the form of reductions in future contributions to the plans.

(iii) Other long-term employee benefits

The liabilities for earned leave and sick leave are not expected to be settled wholly within 12 months after the end of
the period in which the employees render the related service. They are therefore measured as the present value of
expected future payments to be made in respect of services provided by employees up to the end of the reporting
period using the projected unit credit method. The benefits are discounted using the market yields at the end of the
reporting period that have terms approximating to the terms of the related obligation. Remeasurements as a result of
experience adjustments and changes in actuarial assumptions are recognised in the statement of profit or loss.

The obligations are presented under Provisions (current) in the balance sheet if the entity does not have an unconditional
right to defer settlement for atleast twelve months after the reporting period, regardless of when the actual settlement
is expected to occur.

o. Taxation

Tax expenses comprise current and deferred tax.

Current tax

Current tax is measured at the amount expected to be paid to tax authorities in accordance with the Income Tax Act, 1961.
The Company's current tax is calculated using tax rates and tax laws that have been substantially enacted during the period,
together with any adjustment to tax payable in respect of previous years. Current tax assets and tax liabilities are offset where
the Company has a legally enforceable right to offset and intends either to settle on net basis, or to realise the asset and settle
the liability simultaneously.

Deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the standalone
financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are
generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible
temporary differences to the extent that it is probable that taxable profits will be available against which those deductible
temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference
arises from the initial recognition of assets and liabilities in a transaction that affects neither the taxable profit nor the
accounting profit.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it
is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability
is settled or the asset realised, based on tax rates and tax laws that have been enacted or substantively enacted by the end of
the reporting period.

Deferred tax assets and liabilities are offset when there is legally enforceable right to offset current tax assets and liabilities
and when the deferred tax balances are related to the same taxation authority.

Current and deferred tax are recognised as an expense or income in the statement of profit and loss, except when they
relate to items credited or debited either in other comprehensive income or directly in equity, in which case the tax is also
recognised in other comprehensive income or directly in equity.

p. Government grants

Government grants are recognised when there is reasonable assurance that the grant will be received, and compliance with
the conditions attached therewith have been met. Accordingly, government grants:

a) related to or used for assets are included in the balance sheet as deferred income and recognised as income over the
useful life of the assets.

b) related to incurring specific expenditures are taken to the statement of profit and loss on the same basis and in the same
periods as the expenditures incurred.

c) by way of financial assistance on the basis of certain qualifying criteria are recognised as and when such criteria are met.

q. Warranties

The Company generally provides for warranties for general repair of defects or replacements. Warranty costs are estimated by
the Management on the basis of a technical evaluation and based on specific warranties, claims and claim history. Provision
is made for estimated liability in respect of warranty cost in the year of sale of goods. Warranty provisions are measured at
discounted amounts. The Company discounts its provision for warranty to present value at reporting dates. Consequently,
the unwinding of discount is recognised in the statement of profit and loss.

Provision for warranty is expected to be utilised over a period of one to ten years.