1.1 Basis of Preparation of Financial Statements

The financial statements are prepared in accordance with Indian Accounting Standards (Ind AS) notified
under Section 133 of the Companies Act, 2013 ("Act”) read with Rule 3 of the Companies (Indian
Accounting Standards) Rules, 2015 and relevant amendment rules issued thereafter.

The financial statements have been prepared and presented under the historical cost convention, on the
accrual basis of accounting except for certain financial assets and financial liabilities that are measured at
fair values at the end of each reporting period, as stated in the accounting policies set out below. The
accounting policies have been consistently applied except where a newly issued accounting standard is
initially adopted or a revision to an existing accounting standard requires a change in the accounting policy
hitherto in use.

1.2 Current / non-current classification

An asset or liability is classified as current if it satisfies any of the following conditions:

i. the asset/liability is expected to be realized/settled in the Company's normal operating cycle;

ii. the asset is intended for sale or consumption;

iii. the asset/liability is held primarily for the purpose of trading;

iv. the asset/liability is expected to be realized/settled within twelve months after the reporting
period;

v. the asset 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 date;

vi. in the case of a liability, where the Company does not have an unconditional right to defer
settlement of the

liability for at least twelve months after the reporting date.

All other assets and liabilities are classified as non-current.

For the purpose of current/non-current classification of assets and liabilities, the Company has
ascertained its normal operating cycle as twelve months. This is based on the nature of services and the

time between the acquisition of assets or inventories for processing and their realization in cash and cash
equivalents.

1.3 Use of estimates

The preparation of the financial statements in conformity with Ind AS requires management to make
estimates, judgments and assumptions. These estimates, judgments and assumptions affect the
application of accounting policies and the reported amounts of assets and liabilities, the disclosures of
contingent assets and liabilities at the date of the financial statements and reported amounts of revenues
and expenses during the period. Application of accounting policies that require critical accounting
estimates involving complex and subjective judgments and the use of assumptions in the financial
statements have been disclosed in note 1.4. Accounting estimates may change from period to period.
Actual results may differ from those estimates. Appropriate changes in estimates are made as
management becomes aware of changes in circumstances surrounding the estimates. Changes in
estimates are reflected in the financial statements in the period in which changes are made and, if material,
their effects are disclosed in the notes to the financial statements.

1.4 Critical accounting estimates and judgements

The key assumptions concerning the future and other key sources of estimating uncertainty at the
reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of
assets and liabilities within the next financial year, are described below:

a. Property, plant and equipment

Property, plant and equipment represent a significant proportion of the asset base of the Company.
The charge in respect of periodic depreciation is derived after determining an estimate of the asset's
expected useful life and the expected residual value at the end of its life. The useful lives and residual
values of company's assets are determined by management at the time the asset is acquired and
reviewed periodically, including at each financial year end. The lives are based on historical experience
with similar assets as well as anticipation of future events, which may impact their life, such as changes
in technology.

b. Employee Benefits

The present value of the defined benefit obligations depends on a number of factors that are
determined on an actuarial basis using a number of assumptions. Any changes in these assumptions
will impact the carrying amount of obligations.

c. Provision for Bad Debts

Provision for bad debts is based on management's estimate of risks involved in recovery of stagnant
balances which are reviewed periodically. Similarly, write back of customers' dues are based on
management's estimate after review of stagnant balances periodically.

d. Inventory obsolescence

Inventory is valued by the management after making necessary provisions for obsolescence based
on management's estimate after review of slow and non-moving items periodically.

e. Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be
measured based on quoted prices in active markets, their fair value is measured using valuation
techniques which involve various judgements and assumptions. Where, in spite of best efforts, a

reliable basis for fair value cannot be obtained, the carrying amount is substituted as fair value.

f. Taxes

Income tax, GST and other applicable taxes are computed and paid as per the law for the time being in
force. Impact of decisions of Supreme Court and jurisdictional appellate bodies to the extent possible
are considered therein. Advance rulings sought by third parties are by and large not binding on the
company as facts may differ.

1.5 Revenue from Contracts with Customers

Revenue from contracts with customers is recognised on transfer of control of goods or services to a
customer at an amount that reflects the consideration to which the Company is expected to be entitled to
in exchange for those goods or services. 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 and services rendered is net of variable consideration on
account of various discounts and schemes offered by the Company as part of the contract. This variable
consideration is estimated based on the expected value of outflow. Revenue (net of variable consideration,
if any) is recognised only to the extent that it is highly probable that the amount will not be subject to
significant reversal when uncertainty relating to its recognition is resolved.

Sale of products: Revenue from sale of products is recognized when the control on the goods have been
transferred to the customer. The performance obligation in case of sale of product is satisfied at a point in
time i.e., when the material is delivered to the customer.

1.6 Property, plant and equipment

Property, plant and equipment are stated at cost, less accumulated depreciation and impairment, if any.
Costs directly attributable to acquisition are capitalized until the property, plant and equipment are ready
for use, as intended by management. When parts of an item of property, plant and equipment have
different useful lives, they are accounted for as separate items (major components). The cost of
replacement spares/ major inspection relating to property, plant and equipment is capitalized only when it
is probable that future economic benefits associated with these will flow to the company and the cost of
the item can be measured reliably.

Depreciation on Tangible Assets has been provided on written down value method. The useful lives
adopted are as prescribed in Schedule II of the Companies Act, 2013, except for leasehold land which is
amortised over the period of lease. Capital Spares, if any, are depreciated based on useful life of each
replaced part.

Depreciation methods, useful lives and residual values are reviewed periodically, including at each financial
year end.

Advances paid towards the acquisition of property, plant and equipment outstanding at each balance
sheet date is classified as capital advances under other non-current assets and the cost of assets not put
to use before such date are disclosed under 'Capital work-in-progress'. Subsequent expenditures relating
to property, plant and equipment is capitalized only when it is probable that future economic benefits
associated with these will flow to the company and the cost of the item can be measured reliably.

Repairs and maintenance costs are recognized in the Statement of Profit and Loss. The cost and related
accumulated depreciation are eliminated from the financial statements upon sale or retirement of the asset
and the resultant gains or losses are recognised in the Statement of Profit and Loss. Assets to be disposed
off are reported at the lower of the carrying value or the fair value less cost to sell.

The Company has elected to continue with the carrying value of all of its property, plant and equipment and
intangible assets recognised as of April 1, 2016 (transition date) measured as per the previous GAAP and
use that carrying value as its deemed cost as of the transition date.

1.7 Intangible Assets

Intangible assets are stated at cost less accumulated amortization and impairment. Intangible assets are
amortized over their respective individual estimated useful lives on a straight-line basis, from the date that
they are available for use. The estimated useful life of an identifiable intangible asset is based on a number
of factors including the effects of obsolescence, demand, competition, and other economic factors (such
as the stability of the industry, and known technological advances), and the level of maintenance
expenditures required to obtain the expected future cash flows from the asset. Amortization methods and
useful lives are reviewed periodically including at each financial year end.

1.8 Financial instruments

1.8.1 Initial recognition

The Company recognises financial assets and financial liabilities when it becomes a party to the
contractual provisions of the instrument. All financial assets and liabilities are recognized at fair
value on initial recognition, except for trade receivables which are initially measured at transaction
price. Transaction costs that are directly attributable to the acquisition or issue of financial assets
and financial liabilities, that are not at fair value through profit or loss, are added to the fair value on
initial recognition. Regular purchase and sale of financial assets are accounted for at trade date.

1.8.2 Subsequent measurement

a. Non-derivative financial instruments

(i) Financial assets carried at amortised cost

A financial asset is subsequently measured at amortised cost if it is held within a business
model whose objective is to hold the asset in order to collect contractual cash flows and the
contractual terms of the financial asset give rise on specified dates to cash flows that are
solely payments of principal and interest on the principal amount outstanding.

This category applies to cash and bank balances, trade receivables, loans and other financial
assets of the Company. Such financial assets are subsequently measured at amortized cost
using the effective interest method.

Since most of the financial assets are current, the effect of discounting the future cash
receipts to the initial recognition value is not expected to be material and hence not done.

Interest income is earned on financial assets maturing within 12 months and hence interest
income is recognised over the relevant period of the financial asset under other income in the
Statement of Profit and Loss.

(ii) Financial assets at fair value through other comprehensive income

A financial asset is subsequently measured at fair value through other comprehensive
income if it is held within a business model whose objective is achieved by both collecting
contractual cash flows and selling financial assets and the contractual terms of the financial
asset give rise on specified dates to cash flows that are solely payments of principal and
interest on the principal amount outstanding. The Company has made an irrevocable election
for its investments which are classified as equity instruments to present the subsequent
changes in fair value in other comprehensive income based on its business model. Further, in
cases where the Company has made an irrevocable election based on its business model, for
its investments which are classified as equity instruments, the subsequent changes in fair
value are recognized in other comprehensive income.

(iii) Financial assets at fair value through profit or loss

A financial asset which is not classified in any of the above categories are subsequently fair
valued through profit or loss.

(iv) Financial liabilities

Financial liabilities are subsequently carried at amortised cost using the effective interest
method, except for contingent consideration recognized in a business combination which is
subsequently measured at fair value through profit and loss. For trade and other payables
maturing within one year from the Balance Sheet date, the carrying amounts are more or less
equal to the fair value due to the short maturity of these instruments.

b. Derivative financial instruments

The Company holds derivative financial instruments such as foreign exchange forward and
option contracts to mitigate the risk of changes in exchange rates on foreign currency
exposures. The counterparty for these contracts is generally a bank. However, there were no
derivative financial instruments in the years 2023-24 and 2024-25.

(i) Financial assets or financial liabilities, at fair value through profit or loss

This category has derivative financial assets or liabilities which are not designated as hedges.

Although the company believes that these derivatives constitute hedges from an economic
perspective, they may not qualify for hedge accounting under Ind AS 109, Financial
Instruments. Any derivative that is either not designated as hedge, or is so designated but is
ineffective as per Ind AS 109, is categorized as a financial asset or financial liability, at fair
value through profit or loss.

Derivatives not designated as hedges are recognized initially at fair value and attributable
transaction costs are recognized in the Statement of Profit and Loss when incurred.
Subsequent to initial recognition, these derivatives are measured at fair value through profit
or loss and the resulting exchange gains or losses are included in other income. Assets/
liabilities in this category are presented as current assets/ current liabilities if they are either
held for trading or are expected to be realized within 12 months after the balance sheet date.

(ii) Cash flow hedges

The company designates certain foreign exchange forward and options contracts as cash
flow hedges to mitigate the risk of foreign exchange exposure on highly probable forecast
cash transactions.

When a derivative is designated as a cash flow hedging instrument, the effective portion of
changes in the fair value of the derivative is recognized in other comprehensive income and
accumulated in the cash flow hedging reserve. Any ineffective portion of changes in the fair
value of the derivative is recognized immediately in the net profit in the statement of profit
and loss. If the hedging instrument no longer meets the criteria for hedge accounting, then
hedge accounting is discontinued prospectively. If the hedging instrument expires or is sold,
terminated or exercised, the cumulative gain or loss on the hedging instrument recognized in
cash flow hedging reserve till the period the hedge was effective remains in cash flow
hedging reserve until the forecasted transaction occurs.

The cumulative gain or loss previously recognized in the cash flow hedging reserve is
transferred to the Statement of Profit and Loss upon the occurrence of the related
forecasted transaction. If the forecasted transaction is no longer expected to occur, then the
amount accumulated in cash flow hedging reserve is reclassified to the Statement of Profit
and Loss.

c. Share capital - Ordinary Shares

Ordinary shares are classified as equity. Incremental costs directly attributable to the issuance
of new ordinary shares and share options are recognized as a deduction from equity, net of any
tax effects.

1.8.3 Derecognition of financial instruments

The company derecognizes a financial asset when the contractual rights to the cash flows from
the financial asset expire or it transfers the financial asset and the transfer qualifies for
derecognition under Ind AS 109. A financial liability (or a part of a financial liability) is
derecognized from the Company's Balance Sheet when the obligation specified in the contract
is discharged or cancelled or expires.

1.9 Fair value of financial instruments

The Company measures financial instruments at fair value in accordance with the accounting policies
mentioned above. 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. 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 realized.

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 are more or less equal to the fair value due to the short maturity
of these instruments.

1.10 Impairment

a. Financial assets

The Company recognizes loss allowances using the expected credit loss (ECL) model for the financial
assets which are not fair valued through profit or loss. Loss allowance for trade receivables with no
significant financing component is measured at an amount equal to lifetime ECL. For all other financial
assets, expected credit losses are measured at an amount equal to the 12-month ECL, unless there has
been a significant increase in credit risk from initial recognition in which case those are measured at
lifetime ECL. The amount of expected credit losses (or reversal) that is required to adjust the loss
allowance at the reporting date to the amount that is required to be recognised is recognized as an
impairment gain or loss in profit or loss.

b. Non-financial assets

Intangible assets and property, plant and equipment

Intangible assets and property, plant and equipment are evaluated for recoverability whenever events
or changes in circumstances indicate that their carrying amounts may not be recoverable. For the
purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell
and the value-in-use) is determined on an individual asset basis unless the asset does not generate
cash flows that are largely independent of those from other assets. In such cases, the recoverable
amount is determined for the cash generation units to which the asset belongs.

If such assets are considered to be impaired, the impairment to be recognized in the Statement of Profit
and Loss is measured by the amount by which the carrying value of the assets exceeds the estimated
recoverable amount of the asset. An impairment loss is reversed in the statement of profit and loss if
there has been a change in the estimates used to determine the recoverable amount. In such cases, the
carrying amount of the asset is increased to its revised recoverable amount. However, such revised
amount will not be exceeded beyond the carrying amount that would have been determined (net of any
accumulated amortization or depreciation) had no impairment loss been recognized for the asset in
prior years.