b. Significant Accounting Policies

Current and Non - Current classification

All assets and liabilities are classified into current and non-current generally based on the
criteria of realisation/settlement within a twelve month period from the balance sheet date.

An asset is treated as current when it is:

• Expected to be realised or intended to be sold or consumed in normal operating cycle

• Held primarily for the purpose of trading

• Expected to be realised within twelve months after the reporting period, or

• Cash or cash equivalent unless restricted from being exchanged or used to settle a liability
for at least twelve months after the reporting period

All other assets are classified as non-current.

A liability is current when:

• It is expected to be settled in normal operating cycle

• It is held primarily for the purpose of trading

• It is due to be settled within twelve months after the reporting period, or

• There is no unconditional right to defer the settlement of the liability for at least twelve
months after the reporting period

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 a cquisition of assets for processing and their realisati on
in cash and cash equivalents. The Company has identified twelve months as its operating cycle.

c. Use of estimates

The preparation of financial statements requires the management of the Company to make
estimates and assumptions that affect the reported balances of assets and liabilities and
disclosures relating to the contingent liabilities as at the date of the financial statements and
reported amounts of income and expense for the period presented. Future results could
differ due to changes in these estimates and the difference between the actual result and the
estimates are recognised in the period in which the results are known / materialized.

d. Property, Plant and Equipment

Property, Plant and Equipment are stated at cost of acquisition, less accumulated depreciation and
impairment losses, if any. Cost comprises of all expenses including freight, incidental expenses and
other non-refundable taxes or levies related to acquisition and installation incurred to bring the
assets to its present location and condition. Borrowing costs directly attributable to the acquisition
/construction are included in the cost of fixed assets. Adjustments arising from exchange rate
variations attributable to the fixed assets are capitalized. GST Input Claim are deducted from the
cost of respective assets. Any subsidy receivables from government are deducted from cost of
capital asset at the time of capitalization of the asset.

Subsequent expenditures related to an item of tangible asset are added to its book value only if
they increase the future economic benefits from the existing asset beyond its previously assessed
standard of performance.

e. Depreciation / Amortisation

All fixed assets, are depreciated on WDV Method. Depreciation is provided based on useful life of
the assets as prescribed in Schedule II to the Companies Act, 2013. Depreciation on additions to
/ deletions from fixed assets made during the period is provided on pro-rata basis from / up to
the date of such addition / deletion as the case may be.

In respect of an assets for which impairment loss is recognized, depreciation is provided on the
revised carrying amount of the assets over its remaining useful life.

Intangible assets are amortized on WDV basis over their estimated useful lives of 5 years. A
rebuttable presumption that the useful life of an intangible asset will not exceed five years from the
date when the asset is available for use is considered by the management. The amortization period
and the amortization method are reviewed at least each reporting date. If the expected useful life
of the asset is significantly different from previous estimates, the amortisation method is changed
accordingly

f. Leases

Finance lease:

Assets acquired under finance leases are recognized as an asset and a liability at the
commencement of the lease, at the lower of the fair value of the assets and the present value of
minimum lease payments. The finance expense is allocated to each period during the lease term
so as to produce a constant periodic rate of interest on the remaining balance of the liability.

g. Impairment

As at each Balance Sheet date, the carrying amount of assets are assessed for any indication of
impairment, so as to determine the provision for impairment loss, if any, required or the reversal,
if any, required of impairment loss recognized in previous periods

If any such indication exists, the recoverable amount of the asset is estimated in order to determine
the extent of impairment.

Impairment loss is recognized when the carrying amount of an asset exceeds its recoverable
amount.

Reversal of impairment loss is recognised as income in the statement of profit and loss

h. Investments

Long-term investments and current maturities of long-term investments are stated at cost,
less provision for other than temporary diminution in value. Current investments, except for
current maturities of long- term investments, comprising investments in mutual funds,
government securities and bonds are stated at the lower of cost and fair value.

i. Intangible Assets

Intangible assets are stated at original cost net of tax & duty credits availed, if any, less accumulated
amortization and cumulative impairment. Intangible assets are recognized when it is probable that
the future economic benefits that are attributable to the asset will flow to the enterprise and the
cost of the asset can be measured reliably. Intangible assets are amortized over their useful life.

j. Borrowing Costs

Borrowing costs relating to the acquisition / construction of qualifying assets are capitalized when
all substantial activities necessary to prepare the qualifying assets for their intended use are
complete. A qualifying asset is one that necessarily takes a substantial period of time to get ready
for its intended use.

All other costs related to borrowings are recognised as expense in the period in which they are
incurred.

k. Prior Period Expenses and Exceptional Items

All identifiable items of Income and Expenditure pertaining to prior period are accounted as “Prior
Period Items”. “Exceptional items” are accounted depending on the nature of transaction.

l. Extraordinary Items

‘Extraordinary items’ as per AS 5 “Net Profit or Loss for the period, Prior period items and changes
in Accounting Policies” are income or expenses that arise from events or transactions that are
clearly distinct from the ordinary activities of the enterprise and, therefore, are not expected to

recur frequently or regularly. They are disclosed in the Statement of Profit and Loss as a part of
net profit or loss for the period. The nature and the amount of each extraordinary item are
separately disclosed in the Statement of Profit and Loss in a manner that its impact on current
profit or loss can be perceived.”

m. Events Occurring after Balance Sheet dates

No significant events which could affect the financial position as on 31.03.2025 to a material extent
have been reported by the Assessee, after the balance sheet date till the signing of report.

n. Revenue Recognition

Sales revenue is recognized when property in the goods with all significant risk and rewards as well
as the effective control of goods usually associated with ownership are transferred to the buyer.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the
Company and the revenue can be reliably measured.

Revenue is recognized when it is earned and no significant uncertainty exists as to its realization or
collection. Revenue from sale of goods or services are recognized on delivery of the products or
services, when all significant contractual obligations have been satisfied, the property in the goods
is transferred for price, significant risk and rewards of ownership are transferred to the customers
and no effective ownership is retained.

In the financial statement, revenue from operation does not include Indirect taxes like Goods &
Service Tax.

A. Sale of Goods

Sales are recognized, net of returns and trade discounts, on transfer of significant risk and
rewards of ownership to the buyer, which generally coincide with the delivery of goods to the
customers. The Company collects Goods and Service Tax (GST) and / or Tax Collected at
source on behalf of the government and, therefore, these do not form a part of economic
benefits flowing to the Company.

Hence, they are excluded from revenue.

B. Interest

Revenue is recognised on a time proportion basis taking into account the amount outstanding
and the rate applicable.

C. Service Income

Income from service rendered is recognised based on the terms of the agreements as and when
services are rendered and are net of Goods and Service Tax (GST)/ Service tax.

D. Dividend Income

Dividend income from investments, if any, is accounted on the receipt basis.

E. Insurance claims

Insurance claims are accounted for on the basis of claims admitted / expected to be admitted
and to the extent that the amount recoverable can be measured reliably and it is reasonable to
expect ultimate collection.

o. Taxation

Tax expense comprises current and deferred tax. Tax on income for the current period is
determined on the basis of taxable income and tax computed in accordance with the provisions of
the Income tax Act, 1961 and based on expected outcome of assesment/appeals. Current income-
tax is measured at the amount expected to be paid to the tax authorities in accordance with the
Income-tax Act, 1961 enacted in India and tax laws prevailing in the respective tax jurisdictions
where the Company operates. The tax rates and tax laws used to compute the amount are those
that are enacted or substantively enacted, at the reporting date.

Deferred income taxes reflect the impact of timing differences between taxable income and
accounting income originating during the current year and reversal of timing differences for the
earlier years. Deferred tax is measured using the tax rates and the tax laws enacted or substantively
enacted at the reporting date.

Deferred tax liabilities are recognized for all taxable timing differences. Deferred tax assets are
recognized for deductible timing differences only to the extent that there is reasonable certainty
that sufficient future taxable income will be available against which such deferred tax assets can be
realized.

Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set¬
off current tax assets against current tax liabilities and the deferred tax assets and deferred taxes
relate to the same taxable entity and the same taxation authority.

^p . Foreign Currency Transactions

A. Initial Recognition

Foreign currency transactions are recorded in the reporting currency by applying to the foreign
currency amount the prevailing exchange rate between the reporting currency and the foreign
currency, as on the date of the transaction.

B. Conversion

Year-end foreign currency monetary items are reported using the year end exchange rate.

C. Exchange Differences

Exchange differences arising on the settlement or reporting of monetary items, at rates different
from those at which they were initially recorded during the period or reported in previous
financial statements and / or on conversion of monetary items, are recognised as income or
expense in the year in which they arise.

^q . Trade Receivables, Loans and Advances

Trade receivables and Loans and advances are stated after making adequate provisions for doubtful
balances.

r. Inventories

As per AS-2, The inventories are physically verified at regular intervals by the management. Raw
materials and packing materials are valued at the lower of cost and net realizable value.

Finished goods, Stock-in-Trade and Work-in-Progress are valued at lower of cost and net realizable
value. Cost of inventories comprises of cost of purchase, cost of conversion and other costs
including manufacturing overheads net of recoverable taxes.

Consumable stores and spares are valued at the lower of cost and net realizable value, as estimated

Consumable stores and spares are valued at the lower of cost and net realizable value, as estimated
by the management. Obsolete, defective, unserviceable and slow/non-moving stocks are duly
provided for.