2. Material accounting policies and other
explanatory information

(i) General information and statement of
compliance with Ind AS

These standalone financial statements
comply in all material aspects with the Indian
Accounting Standards (hereinafter referred
to as the ‘Ind AS’) as notified by Ministry of
Corporate Affairs (hereinafter referred to as
the ‘MCA’) under Section 133 of the Companies
Act, 2013 (the ‘Act’) read with Companies
(Indian Accounting Standards) Rules,
2015, as amended from time to time, other
relevant provisions of the Act, presentation
requirements of Division II of Schedule III to
the Act, (Ind AS compliant Schedule III), as
applicable to the financial statements and
other recognised accounting practices and
policies, to the extent applicable.

These standalone financial statements for the
year ended 31 March 2026 approved for issue
in accordance with the resolution passed by
the Board of Directors of the Company on 14
May 2026.

These standalone financial statements are
presented in Indian rupees (‘I ’) which is also
the Company’s functional currency and the
currency of the primary economic environment
in which the Company operates. All amounts
have been rounded-off to the nearest lacs as
per the requirements of Part II of Schedule III
of the Act, unless otherwise indicated.

(ii) Basis of preparation

The standalone financial statements have
been prepared on going concern basis and
at historical cost, except for the following
assets and liabilities, as explained in relevant
accounting policies which have been
measured as indicated below:

Ý Certain financial assets and financial
liabilities that are measured at fair value; and

Ý Employees’ defined benefit plan and
compensated absences are measured as
per actuarial valuation.

The accounting policies followed in preparation
of the financial statements are consistent with
those followed in the most recent annual
financial statements of the Company.

(iii) 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/settled within
twelve months after the reporting period, or

Ý It is cash or cash equivalent unless it is
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 classified as current when it
satisfies any of the following criteria:

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

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

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

Ý 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 respectively.

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.

(iv) Property, plant and equipment

Recognition and initial measurement

Property, plant and equipment are stated at
their cost net of accumulated depreciation and
impairment losses, if any. Such cost includes
expenditure that is directly attributable to the
acquisition, installation and construction of
property, plant and equipment. Freehold land
is stated at original cost of acquisition.

Subsequent measurement

Subsequent expenditures are included in the
asset’s carrying amount only when it is probable
that future economic benefits associated with
the item will flow to the Company and the
cost of the item can be measured reliably. All
other repairs and maintenance are generally
charged to the statement of profit and loss
during the reporting period in which they
are incurred.

Property, plant and equipment which are
not ready for intended use as on the date
of balance sheet are disclosed as ‘Capital
work-in-progress’. Capital work in progress is
stated at cost, net of accumulated impairment
loss, if any. Such items are classified to the
appropriate category of property, plant and
equipment when completed and ready for
their intended use. Advances given towards
acquisition / construction of property, plant
and equipment outstanding at each balance
sheet date are disclosed as Capital Advances
under "Other non-current assets”.

Depreciation on property, plant, and
equipment

Depreciation has been provided on straight
line method, in terms of useful life of the
assets, as prescribed under Schedule II of the
Act. Depreciation on additions/disposals is
provided on a pro-rata basis i.e. from the date
on which the asset is capitalized and till the
date it was disposed-off.

The asset’s useful lives and methods of
depreciation are reviewed at the end of each
reporting period and adjusted prospectively,
if appropriate.

De-recognition

Any item of property, plant and equipment
and any significant part initially recognized
is derecognized upon disposal or when no
future economic benefits are expected from
its use or disposal. Any gain or loss arising on
derecognition of an item of property, plant
and equipment is measured as the difference
between the net disposal proceeds and the
carrying amount of the item and is recognized
in the statement of profit and loss when the
item is derecognized.

(v) Investment property
Recognition and initial measurement

Investment property is categorised as a
property that is:

Ý held to earn rentals or for capital
appreciation or both;

Ý not for sale in the ordinary course of
business, or;

Ý not for use in the production or
supply of goods or services or for
administrative purposes.

I nvestment property is measured at its cost,
including related transaction costs less
depreciation and impairment, if any. The cost
comprises of purchase price and directly
attributable cost of bringing the asset to
its working condition for the intended use.
Subsequent expenditure is capitalized to the
asset’s carrying amount only when it is probable
that future economic benefits associated with
the expenditure will flow to the Company and
the cost of the item can be measured reliably.
All other repairs and maintenance costs are
expensed when incurred.

Depreciation on investment property

Investment property is subsequently measured
at cost less accumulated depreciation and
accumulated impairment loss, if any. The
Company depreciates buildings recognized
as investment property on a pro-rata basis
over the estimated useful lives of the assets as
prescribed under Schedule II to the Act.

De-recognition

Investment property is derecognized either
it is disposed off or when its is permanently
withdrawn from use and no future economic
benefits are expected from their disposal. The
difference between the net disposal proceeds
and the carrying amount of the asset is
recognized in the statement of profit and
loss in the period of de-recognition.

(vi) Intangible assets

Recognition and initial measurement

Intangible assets acquired separately are
measured on initial recognition at cost. Cost
comprises the purchase price and any directly
attributable cost of bringing the assets to
its working condition for its intended use
Following initial recognition, intangible
assets are carried at cost less accumulated
amortization and accumulated impairment
loss, if any.

Subsequent measurement (amortization and
useful lives)

The useful lives of intangible assets are
assessed as finite. Intangible assets with finite
lives are amortised over the useful economic
life and assessed for impairment whenever
there is an indication that the intangible asset
may be impaired. The amortisation period and
the amortisation method for an intangible
asset with a finite useful life are reviewed

De-recognition

An intangible asset is derecognized on
disposal or when no future economic benefits
are expected from its use or disposal. Gains
or loss arising from the de recognition of an
intangible asset, if any, is measured as the
difference between the net disposal proceeds
and the carrying amount of the intangible
asset and is recognized in the statement of
profit and loss when the asset is derecognized.

(vii) Inventories

Raw materials, stores and spares and
packing materials

Raw material, stores and spares and packing
materials are valued at lower of cost and
net realizable value. Cost includes purchase
price, other costs incurred in bringing the
inventories to their present location and
condition, and includes non-refundable taxes.
Materials and other items held for use in the
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. Cost is determined on
a moving weighted average basis. Obsolete,
slow moving and defective inventories are
identified at the time of physical verification
and wherever necessary a provision is made.

Finished goods, by products and stock
in trade

Finished goods are valued at lower of cost
and net realisable value. Cost of inventories of
finished goods includes cost of raw materials,
direct labour and an appropriate proportion of
variable and fixed production overheads, the
later being allocated on the basis of normal
operating capacity which are incurred to
bring the inventories to their present location
and condition.

during each reporting period. Changes in the
expected useful life or the expected pattern
of consumption of future economic benefits
embodied in the asset are considered to
modify the amortisation period or method,
as appropriate, and are treated as changes
in accounting estimates. The amortisation
expense on intangible assets with finite lives is
recognised in the statement of profit and loss.

By-products are valued at net realisable value.

Stock in trade are valued at lower of cost
and net realisable value. Cost of stock-in¬
trade includes cost of purchase and other
cost incurred in bringing the inventories
to the present location and condition.
Cost is determined on a moving weighted
average basis.

Net realisable value is the estimated selling
price in the ordinary course of business, less
the estimated costs of completion and the
estimated costs necessary to make the sale.

(viii)Revenue recognition

Revenue is measured based on the
consideration specified in a contract with a
customer and excludes amounts collected on
behalf of third parties, if any. The Company
recognizes revenue when it transfers control
over a product or service to a customer.

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

Ý Identifying the contract with a customer

Ý Identifying the performance obligations

Ý Determining the transaction price

Ý Allocating the transaction price to the
performance obligations

Ý Recognising revenue when/as performance
obligations are satisfied.

Revenue is measured on the basis of
transaction price, which is the consideration,
adjusted for volume discounts, rebates,
schemes allowances, price concessions,
incentives, amounts collected on behalf of
government and returns, if any, as specified
in the contracts with the customers.
Accumulated experience is used to estimate

the provision for such discounts and rebates.
Revenue is only recognised to the extent that
it is highly probable a significant reversal will
not occur.

Satisfaction of performance obligations

The Company’s revenue is derived when the
Company satisfies a performance obligation
upon transfer of control of goods to customers
as per the terms of the underlying contracts.

The Company exercises judgment in
determining whether the performance
obligation is satisfied at a point in time or
over a period of time. The Company considers
indicators such as how customer consumes
benefits or who controls the asset as it is
being created or existence of enforceable
right to payment for performance to date
and alternate use of such goods or service,
transfer of significant risks and rewards to
the customer, acceptance of delivery by the
customer, etc. Invoices are issued as per
the general business terms and are payable
immediately or in accordance with the agreed
credit period.

A receivable is recognised by the Company
when control of the goods is transferred
and the Company’s right to an amount of
consideration under the contract with the
customer is unconditional, as only the passage
of time is required. When either party to a
contract has performed, the Company presents
the contract in the balance sheet as a contract
asset or a contract liability, depending on the
relationship between the entity’s performance
and the customer’s payment.

No element of financing is deemed present
as the sales are made with insignificant credit
terms depending on the specific terms agreed
with customers.

a) Sale of finished goods and stock-in-trade

Revenue is recognised when control of the
products being sold is transferred to the
customer and when there are no longer any
unfulfilled obligations. The performance
obligations in the contracts are fulfilled
at the time of dispatch, delivery or upon
formal customer acceptance depending
on terms with customers. When payments
received from the customers exceed revenue
recognized to date on a particular contract,
any excess (a contract liability) is reported in
the balance sheet under other liabilities.

b) Revenue from sale of electricity

Sale of energy is accounted for on basis of
energy supplied.

c) Interest income

Interest income from a financial asset is
recognised when it is probable that the
economic benefits will flow to the Company
and the amount of income can be measured
reliably. Interest income is accrued on a time
basis, by reference to the principal outstanding
and at the applicable effective interest rate.

d) Dividend income

Dividend income is recognised when right
to receive is established (provided that it is
probable that the economic benefits will flow
to the Company and the amount of income
can be measured reliably).

e) Trade receivables

Trade receivables are initially recognised at
transaction price as they do not contain a
significant financing component. It represents
the Company’s right to an amount of
consideration that is unconditional.

f) RODTEP income

Revenue from export benefits arising from
Remission of duties and taxes on exported
product (‘RODTEP’) scheme are recognised
on export of goods in accordance with their
respective underlying scheme at fair value of
consideration received or receivable where
there is reasonable assurance that the grant
will be received and all attached conditions
will be complied with.

(ix) Employee benefits

Short-term employee benefits

Short-term employee benefits that are
expected to be settled wholly within twelve
months from the end of the year. The
undiscounted amount of short-term employee
benefits to be paid in exchange for employee
services is recognised as an expense as the
related service is rendered by employees.
These benefits include salaries, wages, bonus
and other benefits.

Defined contribution plan

Employee benefits in the form of contribution
to Provident Fund managed by government
authorities is considered as defined
contribution plans and the same are charged
to the statement of profit and loss for the
year in which the employee renders the
related service.

Defined benefit plan

The Company’s gratuity scheme is considered
as defined benefit plan. The present value of the
obligation under such defined benefit plan is
determined based on actuarial valuation using
the Projected Unit Credit (‘PUC’) method,
which recognises each period of service as
giving rise to additional unit of employee
benefit entitlement and measures each unit
separately to build up the final obligation.
The obligation is measured at the present
value of the estimated future cash flows.
The discount rates used for determining the
present value of the obligation under defined
benefit plans, is based on the market yields
on Government securities as at the reporting
date. The net interest cost is calculated by
applying the discount rate to the net balance
of the defined benefit obligation and the
fair value of plan assets. Re-measurements,
comprising actuarial gains and losses, the
effect of the asset ceiling (if any), and the
return on plan assets (excluding net interest),
are recognized immediately in the balance
sheet with a corresponding debit or credit to
retained earnings through OCI in the period
in which they occur. Re-measurements are not
reclassified to the statement of profit and loss
in subsequent periods.

The Company recognises the following
changes in the net defined benefit obligation
as an expense in the statement of profit
and loss:

Ý Service costs comprising current service
costs, past service costs; and

Ý Net interest expense or income.

Past service costs are recognized in the
statement of profit and loss on the earlier of:

Ý The date of the plan amendment or
curtailment, and

Ý The date that the Company recognizes the
related termination benefits.

Other long-term employee benefits

The liabilities for compensated absences are
provided on the basis of actuarial valuation,
using the projected unit credit method, as at
the date of the balance sheet. Actuarial gains
/ losses, if any, are immediately recognised in
the statement of profit and loss. Compensated
absences, which are expected to be settled
wholly within 12 months after the end of the
period in which the employees render the
related service, are treated as short-term
employee benefits. The Company measures
the expected cost of such absences as the
additional amount that it expects to pay as
a result of the unused entitlement that has
accumulated at the reporting date.

Past service costs are recognized in the
statement of profit and loss on the earlier of:

Ý The date of the plan amendment or
curtailment, and

Ý The date that the Company recognizes the
related termination benefits.

(x) Financial instruments

A financial instrument is any contract that
gives rise to a financial asset of one entity
and a financial liability or equity instrument of
another entity.

a) Financial assets

Financial assets are recognized when
the Company becomes a party to the
contractual provisions of the instrument.

Initial recognition and measurement

On initial recognition, a financial asset
is recognized at fair value. In case of
financial assets which are recognised
initially at fair value through profit and
loss (‘FVTPL’) except for trade receivables
without financing components which
are measured at transaction price, its
transaction cost is recognised in the
Statement of Profit and Loss. In other
cases, the transaction cost is attributed
to the acquisition of the financial asset.

Subsequent measurement

For purposes of subsequent measurement
financial assets are classified in
below categories:

Ý Financial assets carried at
amortised cost

Ý Financial assets at fair value through
other comprehensive income
(‘FVTOCI’)

Ý Financial assets at fair value through
profit or loss (‘FVTPL’)

Financial assets carried at amortised cost

A financial asset is subsequently
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 the
asset in order 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.

Financial assets carried at FVTOCI

A financial asset is classified as at FVTOCI
if both the following criteria are met:

Ý The objective of the business model
is achieved both by collecting
contractual cash flows and selling the
financial assets; and

Ý The asset’s contractual cash flows
represent SPPI.

Financial assets carried at FVTPL

FVTPL is a residual category for financial
assets. Any financial assets , which does
not meet the criteria for categorisation as
amortised cost or as FVTOCI, is classified
as FVTPL. Financial assets included
within the FVTPL category are measured
at fair value with all changes recognized
in the statement of profit and loss.

De-recognition

A financial asset (or, where applicable, a
part of a financial asset or part of a group
of similar financial assets) is primarily
derecognised when the rights to receive
cash flows from the asset have expired.

Impairment of financial assets

In accordance with Ind AS 109, the
Company applies expected credit losses
(‘ECL’) model for measurement and
recognition of impairment loss on the
following financial assets and credit
risk exposure:

Ý Trade receivables;

Ý Financial assets measured at amortised
cost (other than trade receivables);

Ý Financial assets measured at fair value
through other comprehensive income
(FVTOCI).

b) Financial liabilities

Financial liabilities are recognised when
the Company becomes a party to the
contractual provisions of the instrument.

Initial recognition and measurement

All financial liabilities are recognised
initially at fair value and, in the case of
payables, net of directly attributable
transaction costs. The Company’s
financial liabilities include trade and other
payables, short term borrowings and
derivative financial instruments.

Classification

Financial liabilities are classified initially
at initial recognition, as financial
liabilities at FVTPL or at amortised cost,
as appropriate.

De-recognition

A financial liability is derecognised
when the obligation under the liability is
discharged or cancelled or expires.

c) 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 realize the assets and settle the
liabilities simultaneously.

d) Fair value measurement

The Company measures financial
instruments at fair value at each balance
sheet date. All assets and liabilities for
which fair value is measured or disclosed
in the standalone financial statements
are categorized within the fair value
hierarchy, described as follows, based on
the lowest level input that is significant to
the fair value measurement as a whole:

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

Ý Level 2: Valuation techniques for which
the lowest level input that is significant
to the fair value measurement is
directly or indirectly observable.

Ý Level 3: Valuation techniques for which
the lowest level input that is significant
to the fair value measurement
is unobservable.

For assets and liabilities that are
recognised in the standalone balance
sheet on a recurring basis, the Company
determines whether transfers have
occurred between levels in the hierarchy
by re-assessing categorization (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.

e) Hedge accounting

Initial recognition and subsequent
measurement

The Company uses derivative financial
instruments, such as forward contracts
to hedge its foreign currency risks.

reclassified to profit or loss within other
gains/(losses).

(xi) Leases

The Company assesses whether a contract is
or contains a lease, at inception of a contract.
A contract is, or contains, a lease if the
contract conveys the right to control the use
of an identified asset for a period of time in
exchange for consideration.

To assess whether a contract conveys the
right to control the use of an identified asset,
the Company assesses whether:

Ý the contract involves the use of an
identified asset;

Ý the Company has substantially all of the
economic benefits from use of the asset
through the period of the lease and;

Ý the Company has the right to direct the use
of the asset.

Company as a lessee
Right-of-use assets

At the date of commencement of the lease,
the Company recognizes a right-of-use asset
and a corresponding lease liability for all lease
arrangements in which it is a lessee, except for
short-term leases and low value leases.

The right-of-use assets are initially recognized
at cost, which comprises the initial amount of the
lease liability adjusted for any lease payments
made at or prior to the commencement date
of the lease. They are subsequently measured
at cost less accumulated depreciation and
impairment losses, if any. Right-of-use assets
are depreciated from the commencement
date on a straight-line basis over the shorter
of the lease term and useful life of the
underlying asset.

Lease liabilities

Lease liability is initially measured at the
present value of the future lease payments.
The lease payments are discounted using
the interest rate implicit in the lease or,
if not readily determinable, using the
incremental borrowing rates. The Company
uses the incremental borrowing rate as the
discount rate.

Lease payments included in the measurement
of the lease liability includes fixed payments,
variable lease payments that depend on an
index or a rate known at the commencement
date; and extension option payments
or purchase options payment which the
Company is reasonably certain to exercise.

Variable lease payments that do not depend
on an index or rate are not included in the
measurement the lease liability and the
right-of-use asset. The related payments are
recognized as an expense in the period in
which the event or condition that triggers
those payments occurs and are included in
the line "other expenses” in the statement of
profit and loss.

The lease term comprises the non-cancellable
lease term together with the period
covered by extension options, if assessed
as reasonably certain to be exercised, and
termination options, if assessed as reasonably
certain not to be exercised. The lease liability
is subsequently remeasured by increasing
the carrying amount to reflect interest on the
lease liabilities, reducing the carrying amount
to reflect the lease payments made.

Right-of-use asset and lease liability have been
separately presented in the balance sheet
and lease payments have been classified as
financing cash flows.

Short-term leases and leases of low-value
assets

The Company applies the short-term lease
recognition exemption to its short-term leases
(i.e., those leases that have a lease term of
12 months or less from the commencement
date). It also applies the lease of low-value
assets recognition exemption to leases that
are considered of low value. Lease payments
on short-term leases and leases of low-
value assets are recognised as expense on a
straight-line basis over the lease term.

Comoanv as a lessor

Leases for which the Company is a lessor is
classified as a finance or operating lease.
Whenever the terms of the lease transfer
substantially all the risks and rewards of
ownership to the lessee, the contract is
classified as a finance lease. All other leases
are classified as operating leases.

(xii) Foreign currency transactions and
translations

The Company’s standalone financial
statements are presented in (I), which is the
Company’s functional currency.

In preparing the financial statements,
transactions in currencies other than the
Company’s functional currency are recorded
at the rates of exchange prevailing on
the date of the transaction. At the end of
each reporting period, monetary items
denominated in foreign currencies are re¬
translated at the rates prevailing at the end

of the reporting period. Non-monetary items
carried at fair value that are denominated in
foreign currencies are re-translated at the
rates prevailing on the date when the fair
value was determined. Non-monetary items
that are measured in terms of historical cost in
a foreign currency are not translated.

Exchange differences arising on the re¬
translation or settlement of monetary items
are included in the statement of profit and
loss for the period.

(xiii) Taxes

Tax expense is the aggregate amount
included in the determination of profit or
loss for the period in respect of current tax
and deferred tax. Current and deferred tax
are recognised as income or an expense in
the statement of profit and loss, except when
they relate to items that are recognised in
Other Comprehensive Income, in which case,
the current and deferred tax credit/charge are
recognised in Other Comprehensive Income.

Current tax

Current tax is the amount of income taxes
payable in respect of taxable profit for a
period and is calculated on the basis of the
tax laws enacted at the balance sheet date.
Taxable profit differs from ‘Profit before tax’
as reported in the statement of profit and loss
because of items of income and expense that
are taxable or deductible in other years and
items that are never taxable or deductible
under Income-tax Act, 1961.

Current tax assets and tax liabilities are offset
where the entity has a legally enforceable
right to offset and intends either to settle on a
net basis, or to realise the asset and settle the
liability simultaneously.

Deferred tax

Deferred tax is recognized on temporary
differences between the carrying amounts of
assets and liabilities in the financial statements
and the corresponding tax bases used in the
computation of taxable profit under Income-
tax Act, 1961.

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 it is probable that taxable profit will
be available against which those deductible
temporary differences can be utilised.

Deferred tax assets and liabilities are measured
at the tax rates that have been enacted or
substantively enacted by the Balance Sheet
date and are expected to apply to taxable

income in the years in which those temporary
differences are expected to be recovered
or settled.

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

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 profit will be
available to allow the benefits of part or all of
such deferred tax assets to be utilised.