1. Corporate information

Jupiter Wagons Limited (the "Company"), having its
registered office situated at 48, Vandana Vihar, Narmada
Road, Gorakhpur, Jabalpur, Madhya Pradesh, India-
482001 (CIN L28100MP1979PLC049375), incorporated
on 28 September 1979, under the Companies Act, 1956.
The equity shares of the Company are listed on two stock
exchanges in India (Bombay Stock Exchange Limited and
National Stock Exchange of India Limited). The Company
is engaged in the business of manufacturing railway
wagons, wagon components, castings, metal fabrication
comprising load bodies for commercial vehicles, rail
freight wagons and components with manufacturing
facilities at Hooghly (West Bengal), Jabalpur (Madhya
Pradesh), Indore (Madhya Pradesh) and Jamshedpur
(Jharkhand).

2. Basis of preparation and material accounting
policy information

a. Statement of compliance

These standalone financial statements have been prepared
in accordance with the Indian Accounting Standards (Ind
AS) as prescribed under section 133 of the Companies Act,
2013 read with Companies (Indian Accounting Standards)
Rules, 2015 and other relevant provisions of the Act (as
amended from time to time) and the guidelines issued
by Securities and Exchange Board of India, to the extent
applicable.

b. Basis of preparation

The Company's standalone financial statements have been
prepared on an accrual basis and under the historical cost
convention except for the following financial assets and
liabilities:

i) Financial assets and liabilities including derivative
instruments are measured at fair value; and

ii) Defined benefit plans - plan assets measured at fair
value.

The standalone financial statements have been prepared
in accordance with the accounting policies, set out below
and were consistently applied to all periods presented
unless otherwise stated. They have been prepared under
the assumption that the Company operates on a going
concern basis, which assumes the Company will be able
to discharge its liabilities as and when they fall due.

The standalone financial statements of the Company
for the year ended 31 March 2026 were approved and
authorised for issue by the board of directors of the
Company on 30 May 2026.

Current versus non-current classification

The Company presents assets and liabilities in the balance

sheet based on current / non-current classification.

An asset is classified as current when it satisfies any of the
following criteria:

Ý it is expected to be realised in, or is intended for sale
or consumption in, the Company’s normal operating
cycle.

Ý it is held primarily for the purpose of being traded;

Ý it is expected to be realised within 12 months after
the reporting date; or

Ý it is cash or cash equivalent unless it is restricted
from being exchanged or used to settle a liability for
at least 12 months after the reporting date.

All other assets are classified as non-current.

A liability is classified as current when it satisfies any of
the following criteria:

Ý It is expected to be settled in Company's normal
operating cycle;

Ý It is held primarily for the purpose of being trading;

Ý It is due to be settled within 12 months after the
reporting period; or

Ý There is no unconditional right to defer the
settlement of the liability for at least 12 months after
the reporting period.

The terms of the liability that could, at the option of the
counterparty, result in its settlement by the issue of equity
instruments do not affect its classification.

The Company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non¬
current assets and liabilities.

The operating cycle is the time between the acquisition of
assets for processing and their realisation in

cash and cash equivalents. The Company has identified
twelve months as its operating cycle.

:. Functional and presentation currency

The Management has determined the currency of the
primary economic environment in which the Company
operates i.e., functional currency, to be Indian Rupee (INR).
The standalone financial statements are presented in INR
lakhs, which is Company's functional and presentational
currency.

d. Revenue recognition

Revenue arises mainly from the sale of goods. Revenue is
recognised at a point in time, when the Company satisfies
performance obligations by transferring the promised
goods to its customers.

To determine whether to recognise revenue, the Company
follows a 5-step process:

(i) Identifying the contract with a customer

(ii) Identifying the performance obligations

(iii) Determining the transaction price

(iv) Allocating the transaction price to the performance
obligations, and then

(v) Recognising revenue when/as performance
obligation(s) are satisfied.

The Company considers the terms of the contract and its
customary business practices to determine the transaction
price. The performance obligation is satisfied upon delivery
of goods to the customer. The transaction price is the
amount of consideration to which the Company expects to
be entitled in exchange for transferring promised goods to
a customer, excluding amounts collected on behalf of third
parties (for example, indirect taxes). The consideration
promised in a contract with a customer may include fixed
consideration, variable consideration (if reversal is less
likely in future) both. 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
goods sold is net of variable consideration on account of
price changes of raw materials used in final product.

Revenue from sale of services is recognised over the
period of time when the services are rendered to the
customer. Revenue from sale of scrap is recognised at the
point in time when control of the scrap is transferred to
the customer and is measured at the transaction price.

e. Inventories

Inventories are valued at the lower of cost and net
realisable value. However, materials and other items
held for use in production of inventories are not written
down below cost if the finished goods in which they will
be incorporated are expected to be sold at or above cost.
Costs incurred in bringing each product to its present
location and condition are accounted for as follows:

Ý Raw materials: Cost includes cost of purchase and
other costs incurred in bringing the inventories
to their present location and condition. Cost is
determined on weighted average basis.

Ý Finished goods and work-in-progress: Cost includes
cost of direct materials and labour and a proportion
of manufacturing overheads based on the normal
operating capacity. Cost of finished goods is
determined on manufacturing cost basis.

Net realisable value is the estimated selling price in
the ordinary course of business, less estimated costs of
completion and the estimated costs necessary to make the
sale. Due allowance is estimated and made for defective
and obsolete items, wherever necessary.

f. Income taxes

Tax expense recognised in the profit or loss comprises
the sum of deferred tax and current tax not recognised
in Other Comprehensive Income (OCI)/directly in equity.

Current tax is measured at the amount expected to be
paid to the tax authorities in accordance with the Income-
tax Act, 1961. Current tax relating to items recognised
outside statement of profit and loss is recognised outside
statement of profit and loss (i.e. in OCI or any other equity
depending upon the treatment of underlying item).

Current tax assets and current tax liabilities are offset
only if there is a legally enforceable right to set off the
recognised amounts, and it is intended to realize the asset
and settle the liability on a net basis or simultaneously.

Deferred income taxes are calculated using the liability
method on temporary differences arising between the
tax bases of assets and liabilities and their carrying
amounts in the standalone financial statements. Deferred
income tax is measured using tax rates and tax laws that
have been enacted or substantively enacted by the end
of the reporting period and are expected to apply when
the related asset is realised or the liability is settled.
Deferred income tax is not accounted for if it arises from
initial recognition of an asset or liability in a transaction
other than a business combination that at the time of the
transaction affects neither accounting profit nor taxable
profit (tax loss).

Deferred tax liabilities are generally recognised in full
for all taxable temporary differences. Deferred tax assets
are recognised to the extent that it is probable that the
underlying tax loss, unused tax credits or deductible
temporary difference will be utilised against future taxable
income. This is assessed based on the Company's forecast
of future operating results, adjusted for significant non¬
taxable income and expenses and specific limits on the use
of any unused tax loss or credit. Unrecognised deferred
tax assets are re-assessed at each reporting date and are
recognised to the extent that it has become probable that
future taxable profits will allow the deferred tax asset to
be recovered.

Deferred tax assets and liabilities are measured at the tax
rates that are expected to apply in the year when the asset
is realised or the liability is settled, based on tax rates
(and tax laws) that have been enacted or substantively
enacted at the reporting date. Deferred tax relating to
items recognised outside the statement of profit and loss is
recognised outside statement of profit and loss (in OCI or
equity depending upon the treatment of underlying item).

g. Goodwill

Recognition and measurement

Goodwill arising on business combination is carried at
cost. After initial recognition, goodwill is carried at cost
less impairment loss, if any.

Impairment

Goodwill is annually tested for impairment. Impairment
loss, if any, to the extent the carrying amount exceeds the
recoverable amount is charged off to the profit or loss
as it arises and is not reversed. For impairment testing,
goodwill is allocated to Cash Generating Unit (CGU) or
group of CGUs to which it relates, which is not larger
than an operating segment, and is monitored for internal
management purposes,

h. Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise
cash on hand, bank balances and short-term deposits
with original maturities of three months or less that are
readily convertible to known amounts of cash and which
are subject to an insignificant risk of changes in value.

i. Foreign currency transactions and balances

Monetary and non-monetary transactions in foreign
currencies are initially recorded in the functional
currency of the Company at the exchange rates at the dates
of the transactions or at an average rate if the average rate
approximates the actual rate at the date of the transaction.

Monetary foreign currency assets and liabilities remaining
unsettled on reporting date are translated at the rates of
exchange prevailing on reporting date. Gains/ (losses)
arising on account of realisation/ settlement of foreign
exchange transactions and on translation of monetary
foreign currency assets and liabilities are recognised in
profit and loss.

Non-monetary items are measured in terms of historical
cost in a foreign currency are translated using the
exchange rate at the date of the transaction. The Company
uses derivative financial instruments to hedge its risk
associated foreign currency fluctuations. Such derivatives
are stated at fair value. Any gains or losses arising from
changes in fair value are taken directly to profit or loss.

j. Financial instruments

Initial measurement and classification
Financial assets and financial liabilities are recognised
when the Company becomes a party to the contractual
provisions of the financial instrument and are measured
initially at fair value adjusted for transaction costs, except
for those carried at fair value through profit or loss
which are measured initially at fair value. Subsequent
measurement of financial assets and financial liabilities
is described below:

Non-derivative financial assets

Financial assets, other than those designated and effective
as hedging instruments, are classified into one of the
following categories:

Ý amortised cost,

Ý fair value through profit or loss (FVTPL), or

Ý fair value through other comprehensive income
(FVOCI).

The classification is determined by both:

Ý the entity's business model for managing the
financial asset, and

Ý the contractual cash flow characteristics of the
financial asset.

Subsequent measurement

i. Financial assets carried at amortised cost - a

financial asset is measured at the amortised cost, if
both the following conditions are met:

Ý The asset is held within a business model
whose objective is to hold assets for collecting
contractual cash flows, and

Ý Contractual terms of the asset give rise on
specified dates to cash flows that are solely
payments of principal and interest (SPPI) on
the principal amount outstanding.

After initial measurement, such financial assets are
subsequently measured at amortised cost using the
effective interest rate (EIR) method.

Offsetting of financial instruments
Financial assets and financial liabilities are offset and the
net amount is reported in the 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
realize 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.

Impairment of financial assets

In accordance with Ind AS 109, the Company applies
expected credit loss (ECL) model for measurement and
recognition of impairment loss for financial assets.
ECL is the weighted-average of difference between all
contractual cash flows that are due to the Company in
accordance with the contract and all the cash flows that
the Company expects to receive, discounted at the original
effective interest rate, with the respective risks of default
occurring as the weights. When estimating the cash flows,
the Company is required to consider:

Ý All contractual terms ofthe financial assets (including
prepayment and extension) over the expected life of
the assets.

Ý Cash flows from the sale of collateral held or
other credit enhancements that are integral to the
contractual terms.

ii. Investments in equity instruments - The Company
subsequently measures all equity investments (other
than subsidiaries, joint ventures and associates) at
fair value (either through profit or loss or through
other comprehensive income). Dividends from
such investments are recognised in profit or loss as
other income when the Company's right to receive
payments is established.

Trade receivables: Trade receivable is recognised
initially at transaction price, plus 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.

In respect of trade receivables, the Company applies
the simplified approach of Ind AS 109, which requires
measurement of loss allowance at an amount equal
to lifetime expected credit losses. Lifetime expected
credit losses are the expected credit losses that result
from all possible default events over the expected
life of a financial instrument, including the use of
historical trends and macroeconomic information.

Other financial assets: In respect of its other
financial assets, the Company assesses if the
credit risk on those financial assets has increased
significantly since initial recognition. If the credit
risk has not increased significantly since initial
recognition, the Company measures the loss
allowance at an amount equal to 12 month expected

credit losses, else at an amount equal to the lifetime
expected credit losses.

When making this assessment, the Company uses
the change in the risk of a default occurring over
the expected life of the financial asset. To make
that assessment, the Company compares the risk
of a default occurring on the financial asset as at
the balance sheet date with the risk of a default
occurring on the financial asset as at the date of
initial recognition and considers reasonable and
supportable information, that is available without
undue cost or effort, that is indicative of significant
increases in credit risk since initial recognition. The
Company assumes that the credit risk on a financial
asset has not increased significantly since initial
recognition if the financial asset is determined to
have low credit risk at the balance sheet date.

Derecognition of financial assets

A financial asset is primarily derecognised when the
contractual rights to receive cash flows from the asset
have expired or the Company has transferred its rights to
receive cash flows from the asset.

Non-derivative financial liabilities

Subsequent measurement at amortised cost
Subsequent to initial recognition, all non-derivative
financial liabilities are measured at amortised cost using
the effective interest method.

Derecognition of financial liabilities
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 de¬
recognition of the original liability and the recognition of
a new liability. The difference in the respective carrying
amounts is recognised in profit or loss.

Derivative financial instruments

Derivative financial instruments are accounted for at
FVTPL.

k. Fair value measurement of financial instruments

In determining the fair value of its financial instruments,
the Company uses a variety of methods and assumptions
that are based on market conditions and risks existing
at each reporting date. The methods used to determine
fair value include discounted cash flow analysis, available
quoted market prices and dealer quotes. All methods of
assessing fair value result in general approximation of
value, and such value may never actually be realised. For

financial assets and liabilities maturing within one year
from the balance sheet date and which are not carried at
fair value, the carrying amounts approximate fair value
due to the short maturity of these instruments.

The Company has an established control framework
with respect to the measurement of fair values. This
includes the management that has overall responsibility
for overseeing all significant fair value measurements,
including Level 3 fair values, and reports directly to the
board of directors.

The management regularly reviews significant
unobservable inputs and valuation adjustments. If
third party information, such as broker quotes or
pricing services, is used to measure fair values, then
the Management assesses the evidence obtained from
the third parties to support the conclusion that these
valuations meet the requirements of Ind AS, including the
level in the fair value hierarchy in which the valuations
should be classified.

Fair values are categorised into different levels in a fair
value hierarchy based on the inputs used in the valuation
techniques as follows:

Level 1: Quoted prices (unadjusted) in active markets for
identical assets or liabilities.

Level 2: Inputs other than quoted prices included in Level 1
that are observable for the asset or liability, either directly
(i.e. as prices) or indirectly (i.e. derived from prices).

Level 3: Inputs for the asset or liability that are not based
on observable market data (unobservable inputs).

When measuring the fair value of an asset or a liability, the
Company uses observable market data as far as possible.
If the inputs used to measure the fair value of an asset
or a liability fall into different levels of the fair value
hierarchy, then the fair value measurement is categorised
in its entirety in the same level of the fair value hierarchy
as the lowest level input that is significant to the entire
measurement.

For assets and liabilities that are recognised in the
standalone financial statements on a recurring basis,
the Company determines whether transfers have
occurred between levels in the hierarchy by reassessing
categorisation (based on the lowest level input that is
significant to the fair value measurement as a whole) at
the end of each reporting period.

For the purpose of fair value disclosures, the Company has
determined classes of assets and liabilities on the basis of

the nature, characteristics and risks of the asset or liability
and the level of the fair value hierarchy as explained above.

l. Property, plant and equipment/ Intangible asset

Recognition and initial measurement
Property, plant and equipment are stated at their
cost of acquisition less accumulated depreciation less
accumulated impairment, if any. The cost comprises
purchase price, borrowing cost if capitalisation criteria
are met and directly attributable cost of bringing the
asset to its working condition for the intended use. Any
trade discount and rebates are deducted in arriving at
the purchase price. 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 definition of asset is met. All other repair
and maintenance costs are recognised in the statement of
profit or loss as incurred.

In case an item of property, plant and equipment is
acquired on deferred payment basis, interest expenses
included in deferred payment is recognised as interest
expense and not included in cost of asset.

Depreciation methods, estimated useful lives and residual
value/ Impairment

Depreciation is calculated using the straight-line method/
written down value method to allocate their cost, net of
their residual values, over their estimated useful lives;

Ý The depreciation/amortization charged on all
property, plant and equipment/intangible assets
is on the basis of useful life specified in Part "C"
of Schedule II to the Companies Act, 2013 which
represents useful lives of the assets.

Ý On assets sold, discarded, etc., during the year,
depreciation is provided up to the date of sale/
discard.

Ý Depreciation has been calculated on a pro-rata basis
from the date of additions in respect of acquisition/
installation during the year.

Ý Leasehold land is amortised over the primary lease
period or the useful life, whichever is shorter.

Ý Customer relationship recorded on account of
business combination is also amortized over the life
of the asset.

Ý Freehold land is not depreciated.

The Company reviews carrying value of its property,
plant and equipment whenever there is objective evidence
that the assets are impaired. In such situation, assets'
recoverable amount is estimated which is higher of
asset's or cash generating units (CGU) fair value less cost
of disposal and its value in use. In assessing value in use,
the estimated future cash flows are discounted using pre¬
tax discount rate, which reflect the current assessment of
time value of money. In determining fair value less cost
of disposal, recent market realisations are considered or
otherwise in absence of such transactions appropriate
valuations are adopted. the Company reviews the
estimated useful lives of the assets regularly in order to
determine the amount of depreciation / amortization and
amount of impairment expense to be recorded, adequately
during any reporting period. This reassessment may
result in change in estimate impacting the financial result
of the Company.

Depreciation methods, useful lives and residual values are
reviewed at each financial year, and changes, if any, are
accounted for prospectively.

De-recognition

An item of property, plant and equipment and any
significant part initially recognised is de-recognised
upon disposal or when no future economic benefits are
expected from its use or disposal. Any gain or loss arising
on de-recognition of the asset (calculated as the difference
between the net disposal proceeds and the carrying
amount of the asset) is included in the statement of profit
and loss when the asset is de-recognised.

m. Capital work-in progress (CWIP)

Costs of materials consumed, erection charges and other
directly attributable costs incurred in respect of projects
under construction are accumulated and disclosed as
Capital work-in-progress (CWIP) until the assets are ready
for their intended use and are capitalised to the relevant
class of Property, plant and equipment. CWIP comprises

assets that are under construction or development and
are not yet ready for their intended use as at the reporting
date. Such assets are carried at cost, comprising directly
attributable costs and, where applicable, borrowing costs
eligible for capitalisation in accordance with Ind AS 23,
less any impairment losses recognised, if any.

i. Impairment of non-financial assets

The carrying amounts of the Company's non-financial
assets, other than inventories, are reviewed at each
reporting date to determine whether there is any
indication of impairment considering the provisions of Ind
AS 36 'Impairment of Assets'. If any such indication exists,
then the asset's recoverable amount is estimated. The
recoverable amount of an asset or cash-generating unit is
the greater of its value in use and its fair value less costs
to sell. 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 the purpose of impairment testing, assets that
cannot be tested individually are Company together into
the smallest group of assets that generates cash inflows
from continuing use that are largely independent of
the cash inflows of other assets or group of assets (the
"cash-generating unit", or "CGU"). An impairment loss is
recognised if the carrying amount of an asset or its CGU
exceeds its estimated recoverable amount. Impairment
losses are recognised in the statement of profit and loss.
Impairment losses recognised in respect of CGUs are
reduced from the carrying amounts of the assets of the
CGU.

). Right of use assets and lease liabilities

The Company considers whether a contract is, or contains a
lease. A lease is defined as ‘a contract, or part of a contract,
that conveys the right to use an asset (the underlying
asset) for a period of time in exchange for consideration’.

The Company as a lessee

Classification of leases

The Company enters into leasing arrangements for
various assets. The assessment of the lease is based on
several factors, including, but not limited to, transfer of
ownership of leased asset at end of lease term, lessee’s
option to extend/purchase etc.

Recognition and initial measurement
At lease commencement date, the Company recognises a
right-of-use asset and a lease liability on the balance sheet.
The right-of-use asset is measured at cost, which is made
up of the initial measurement of the lease liability, any
initial direct costs incurred by the Company, an estimate
of any costs to dismantle and remove the asset at the end of

the lease (if any), and any lease payments made in advance
of the lease commencement date (net of any incentives
received).

Subsequent measurement

The Company depreciates the right-of-use assets on a
straight-line basis from the lease commencement date
to the earlier of the end of the useful life of the right-of-
use asset or the end of the lease term. The Company also
assesses the right-of-use asset for impairment when such
indicators exist.

At lease commencement date, the Company measures the
lease liability at the present value of the lease payments
unpaid at that date, discounted using the interest rate
implicit in the lease if that rate is readily available or the
Company's incremental borrowing rate. Lease payments
included in the measurement of the lease liability are
made up of fixed payments (including in substance fixed
payments) and variable payments based on an index or
rate. Subsequent to initial measurement, the liability
will be reduced for payments made and increased for
interest. It is re-measured to reflect any reassessment or
modification, or if there are changes in in-substance fixed
payments. When the lease liability is re-measured, the
corresponding adjustment is reflected in the right-of-use
asset.

The Company has elected to account for short-term
leases and leases of low-value assets using the practical
expedients. Instead of recognising a right-of-use asset
and lease liability, the payments in relation to these are
recognised as an expense in statement of profit and loss
on a straight-line basis over the lease term.

p. Borrowing costs

Borrowing costs directly attributable to the acquisitions,
construction or production of a qualifying asset are
capitalised during the period of time that is necessary to
complete and prepare the asset for its intended use or sale.
Other borrowing costs are expensed in the period in which
they are incurred and reported in finance costs.

A qualifying asset is one that necessarily takes
substantial period of time to get ready for its intended
use. Capitalisation of borrowing costs is suspended in the
period during which the active development is delayed due
to, other than temporary, interruption.