2 MATERIAL ACCOUNTING POLICIES

2.1 Basis of Preparation

(i) Statement of compliance

The standalone financial statements have been
prepared in accordance with Indian Accounting
Standards (Ind AS) notified under Section 133 of
the Companies Act, 2013 (the "Act") read with the
Companies (Indian Accounting Standards) Rules,
2015 as amended from time to time.

The accounting policies are applied consistently
to all the periods presented in the financial
statements except where a newly issued
accounting standard is initially adopted or revision
to an existing accounting standard where a change
in accounting policy hitherto in use.

These standalone financial statements of the
Company are presented in Indian Rupees (INR),
which is its functional currency and all values
are rounded to the nearest Million except when
otherwise indicated.

The Financial Statements of the Company were
approved and authorized for issue in accordance
with a resolution passed in Board of Directors
meeting held on May 26, 2025.

(ii) Basis of measurement

These Standalone Financial Statements are
prepared in accordance with Indian accounting
standard (Ind As) under the historical cost
convention on accrual basis, except for the
following:

- certain financial assets and liabilities which
are measured at fair value or amortized cost;

- Net defined benefit(asset)/ liability - Fair
value of plan assets less present value of
defined benefit obligation;

(iii) Current versus non-current classification

All assets and liabilities have been classified as
current or non-current as per the Company's
operating cycle and other criteria set out in the
Schedule III to the Companies Act, 2013. Based
on the nature of products and services and their
realization in cash and cash equivalents, the
Company has ascertained its operating cycle as
12 months for the purpose of current and non¬
current classification of assets and liabilities.

(iv) Going concern

The Company has prepared the standalone
financial statements on the basis that it will
continue to operate as a going concern.

(v) Use of Estimates

The preparation of the Standalone Financial
Information requires management to make
judgments, estimates and assumptions that
affect the application of accounting policies and
the reported amounts of assets, liabilities, income
and expenses. Actual results may differ from
those estimates.

Estimates and underlying assumptions are
reviewed on an ongoing basis. Revisions to
accounting estimates are recognized in the period
in which the estimates are revised and in any
future periods affected.

Critical accounting estimates:

a) Useful lives of property, plant and
equipment

The Company reviews the useful life of
property, plant and equipment at the end of
each reporting period. This reassessment
may result in change in depreciation expense
in future periods.

b) Expected credit losses on trade receivables

The impairment provision of trade
receivables is based on assumptions about
risk of default and expected timing of
collection. The Company uses judgment in
making these assumptions and selecting the
inputs to the impairment calculation, based
on the Company's past history customer's
creditworthiness, existing market conditions
as well as forward looking estimates at the
end of each reporting period.

c) Defined benefit plans and compensated
absences

The cost of the defined benefit plans,
compensated absences and the present value
of the defined benefit obligation are based
on actuarial valuation using the projected
unit credit method. An actuarial valuation
involves making various assumptions that
may differ from actual developments in the
future. These include the determination of
the discount rate, future salary increases
and mortality rates. Due to the complexities
involved in the valuation and its long-term
nature, a defined benefit obligation is highly
sensitive to changes in these assumptions.
All assumptions are reviewed at each
reporting date.

d) Leases

The Company evaluates if an arrangement
qualifies to be a lease as per the requirements
of Ind AS 116.Identification of a lease requires
significant judgment. The Company uses
significant judgement in assessing the lease
term (including anticipated renewals) and
the applicable discount rate.

The Company determines the lease term
as the non-cancellable period of a lease,
together with both periods covered by an
option to extend the lease if the Company is

reasonably certain to exercise that option; and
periods covered by an option to terminate the
lease if the Company is reasonably certain not
to exercise that option. In assessing whether
the Company is reasonably certain to exercise
an option to extend a lease, or not to exercise
an option to terminate a lease, it considers all
relevant facts and circumstances that create
an economic incentive for the Company to
exercise the option to extend the lease, or not
to exercise the option to terminate the lease.
The Company revises the lease term if there
is a change in the non-cancellable period of a
lease.

The discount rate is generally based on the
incremental borrowing rate.

2.2 Fair Value Measurement

The Company measures financial instruments at fair
value at each balance sheet date. 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. The fair
value measurement is based on the presumption that
the transaction to sell the asset or transfer the liability
takes place either:

- In the principal market for the asset or liability, or

- In the absence of a principal market, in the most
advantageous market for the asset or liability
accessible to the Company.

The Company uses valuation techniques that are
appropriate in the circumstances and for which
sufficient data are available to measure fair value,
maximizing the use of relevant observable inputs
and minimizing the use of unobservable inputs. The
Company's management determines the policies and
procedures for fair value measurement.

All assets and liabilities for which fair value is measured
or disclosed in the financial statements are categorized
into different levels within the fair value hierarchy
described as follows, based on the level of inputs used
in the valuation techniques as set out below.

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

- Level 2 —inputs other than quoted prices included
in level one and Valuation techniques for which
the lowest level input that is significant to the
fair value measurement is directly or indirectly
observable.

- Level 3 — Valuation techniques for which the
lowest level input that is significant to the fair
value measurement is based on unobservable
market data.

2.3 Revenue Recognition

Revenues are derived primarily from the sale of dental
products and dental services. Revenue is measured as
the amount of consideration the Company expects to
receive in exchange for transferring goods or providing
services in accordance with Ind AS 115, Revenues from
Contracts with Customers. Revenue is recognized when
performance obligations are satisfied; this occurs with
the transfer of control of products and services to its
customers, which for products generally occurs when
title and risk of loss transfers to the customer, and for
services generally occurs as the customer receives and
consumes the benefit.

Revenue also excludes taxes collected from customers.

For the products pertaining to Dental Laboratory
Offering and Aligners Solution, the Company transfers
control and recognizes revenue when products are
shipped from the Company's manufacturing facility
or warehouse to the customer. For contracts with
customers that contain destination shipping terms,
revenue is not recognized until the goods are delivered
to the agreed upon destination. As such, the Company's
performance obligations related to product sales are
satisfied at a point in time as this is when the customer
obtains the use of and substantially all of the benefit of
the product.

Revenue is measured based on the transaction price,
which is the consideration, adjusted for revenue
reduction due to sales returns. Reversal of revenue
on account of sales returns is considered as variable
consideration. The variable consideration is estimated
at contract inception and constrained until it is highly
probable that a significant revenue reversal in the
amount of cumulative revenue recognized will not
occur when the associated uncertainty with the variable
consideration is subsequently resolved. Estimated
revenue reduction is recognized for expected sales
returns using most likely amount method.

Contract Balances:

Contract Liability:

A contract liability is the obligation to transfer goods
or services to a customer for which the Company has

received consideration (or an amount of consideration
is due) from the customer. If a customer pays
consideration before the Company transfers goods
or services to the customer, a contract liability is
recognized when the payment is made or the payment
is due (whichever is earlier). Contract liabilities are
recognized as revenue when the Company performs
under the contract (i.e., transfers control of the related
goods or services to the customer).

Trade Receivable:

A trade receivable is recognized if an amount of
consideration that is unconditional (i.e., only the
passage of time is required before payment of the
consideration is due).

Other operating income represents income earned
from the activities incidental to the business and is
recognized when the performance obligation is satisfied
and the right to receive the income is established as
per the terms of the contract.

Government grants are accounted when there is
reasonable assurance that the Company will comply
with the conditions attached to them and where there is
a reasonable assurance that the grant will be received.
The Company receives grants related to income and
the same is recognized in the standalone Statement of
Profit and Loss as “other operating income" (Revenue
from operation).

2.4 Inventories

I nventories are valued at the lower of cost and net
realizable value. Cost of inventories comprises all cost
of purchase, cost of conversion and other costs incurred
in bringing the inventories to their present location
and condition. Net realizable 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.

Costs incurred in bringing each product to its present
location and condition are accounted for as follows:

Raw materials:

Cost includes purchase price, (excluding those
subsequently recoverable by the enterprise from the
concerned revenue authorities), freight inwards and
other expenditure incurred in bringing such inventories
to their present location and condition. Cost is
determined on weighted average basis. Raw Materials
are valued at lower of cost and net realizable value
(NRV).

Finished Goods:

Cost includes cost of direct materials and labour and
a proportion of manufacturing overheads based on the
normal operating capacity. The same is valued at lower
of cost and NRV. Cost of Finished goods includes cost
of raw materials, cost of conversion and other costs
incurred in bringing the inventories to their present
location and condition. Cost of inventories is computed
on weighted average basis.

Traded goods:

Cost includes purchase price, (excluding those
subsequently recoverable by the enterprise from the
concerned revenue authorities), freight inwards and
other expenditure incurred in bringing such inventories
to their present location and condition.

Provision for inventory:

Provision of obsolescence on inventories is considered
on the basis of management's estimate based on
demand and market value of the inventories.

2.5 Property, Plant & Equipment

Property, plant and equipment are stated at cost, less
accumulated depreciation and impairment, if any.
Cost includes expenditures directly attributable to the
acquisition of the asset. 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) of property, plant
and equipment. Subsequent expenditure 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.

The carrying amount of any component accounted for
as a separate asset is derecognized when discarded/
scrapped. All other repairs and maintenance costs are
charged to profit and loss in the reporting period in
which they occur.

Any gain or loss on disposal of an item of property
plant and equipment is recognized in profit or loss.

(b) Depreciation:

Depreciation is provided, under the Written down
value (WDV) basis, pro rata to the period of use,

based on useful lives specified in Schedule II to
the Companies Act, 2013.

The estimated useful lives, residual values
and depreciation method are reviewed at the
end of each reporting period, with the effect
of any changes in estimate accounted for on a
prospective basis.

The range of useful lives of the Property, Plant
and Equipment are as follows:

2.6 Intangible assets

I ntangible assets are recognized when it is probable
that the future economic benefits that are attributable
to the asset will flow to the Company and the cost of the
asset can be measured reliably. Intangible assets are
stated at original cost net of tax/duty credits availed,
if any, less accumulated amortization and cumulative
impairment. All directly attributable costs and other
administrative and other general overhead expenses
that are specifically attributable to acquisition of
intangible assets are allocated and capitalized as a part
of the cost of the intangible assets.

2.7 Leases

The Company leases most of its office and warehouse
facilities under operating lease agreements that are
renewable on a periodic basis at the option of the
lessor and the lessee. The lease agreements contain
rent escalation clauses.

The Company assesses whether a contract contains
a lease at the inception of the 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: (i) the
contract involves the use of an identified asset, (ii) the
Company has the right to obtain substantially all of the
economic benefits from the use of the asset through
the period of the lease, and (iii) the Company has the
right to direct the use of the asset.

At the date of commencement of the lease, the
Company recognizes a ROU asset and a corresponding
lease liability for all lease arrangements under which it
is a lessee, except for short-term leases and low value
leases. ROU assets represent the Company's right to
use an underlying asset for the lease term and lease
liabilities represent the Company's obligation to make
lease payments arising from the lease. The Company
has elected not to apply the requirements of Ind AS
116 Leases to short-term leases of all assets that
have a lease term of 12 months or less and leases for
which the underlying asset is of low value. The lease
payments associated with these leases are recognized
as an expense on a straight-line basis over the lease
term.

The lease arrangements include options to extend or
terminate the lease before the end of the lease term.
ROU assets and lease liabilities include these options
when it is reasonably certain that they will be exercised.

The ROU 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 plus any initial
direct costs. They are subsequently measured at cost
less accumulated depreciation and impairment losses.

ROU assets are depreciated from the date of
commencement of the lease on a straight-line basis
over the shorter of the lease term and the useful life of
the underlying asset.

The lease liability is initially measured at amortized
at the present value of the future lease payments.
The Company uses its incremental borrowing rate
(as the interest rate implicit in the lease is not readily
determinable) based on the information available at the
date of commencement of the lease in determining the
present value of lease payments. The lease liability is
subsequently remeasured by increasing the carrying
amount to reflect interest on the lease liability
reducing the carrying amount to reflect the lease

payments made. Lease liabilities are remeasured with
a corresponding adjustment to the related ROU asset if
the Company changes its assessment as to whether it
will exercise an extension or a termination option.

2.8 Investment Properties

Properties held to earn rentals are classified as
investment property and are measured and reported
at cost, including transaction costs, in accordance with
the Company's accounting policy. Policies with respect
to depreciation, useful life and derecognition are on the
same basis as stated in PPE above.

I nvestment properties are measured initially at cost,
including transaction costs. Subsequent to initial
recognition, investment properties are stated at cost
less accumulated depreciation and accumulated
impairment loss, if any.

The Company, based on technical assessment made
by technical expert and management estimate,
depreciates the building over estimated useful lives
(20-40 years) which are different from the useful life
prescribed in Schedule II to the Companies Act, 2013.
The management believes that these estimated useful
lives are realiztic and reflect fair approximation of the
period over which the assets are likely to be used.

Though the Company measures investment properties
using cost based measurement, the fair value of
investment property is disclosed in the notes. Fair
values are determined based on an annual evaluation
performed by an accredited external independent
valuer applying a valuation model recommended by the
International Valuation Standards Committee.

Investment properties are derecognized either

when they have been disposed off or when they are
permanently withdrawn from use and no future
economic benefit is expected from their disposal. The
difference between the net disposal proceeds and the
carrying amount of the asset is recognized in profit
or loss in the period of derecognition. In determining
the amount of consideration from the derecognition
of investment properties the Company considers
the effects of variable consideration, existence
of a significant financing component, non-cash
consideration, and consideration payable to the buyer
(if any).

Rent receivable is recognized on a straight-line basis
over the period of the lease.

2.9 Financial Instruments
(a) Financial Assets

(i) Classification

The Company classifies its financial assets in
the following measurement categories:

- those to be measured subsequently at
fair value through profit and loss, and

- those measured at amortized cost

The classification depends on the entity's
business model for managing the financial
assets and the contractual cash flow
characteristics.

(ii) Initial recognition

All financial assets are recognized initially at
fair value plus, in the case of financial assets
not recorded at fair value through profit or
loss, transaction costs that are attributable
to the acquisition of the financial asset. Trade
receivables are measured at transaction
price.

(iii) Measurement

Subsequent to initial recognition, financial
assets are measured as described below:

Cash and Cash equivalents:

The Company's cash and cash equivalents
consist of cash on hand and in banks and
demand deposits with banks (three months
or less from the date of acquisition). For
the purposes of the cash flow statement,
cash and cash equivalents include cash on
hand, in banks and demand deposits with
banks (three months or less from the date
of acquisition), net of outstanding bank
overdrafts that are repayable on demand
and are considered part of the Company's
cash management system. In the balance
sheet, bank overdrafts are presented under
borrowings within current liabilities.

Financial assets carried at amortized cost:

A financial asset is subsequently measured
at amortized 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.

Financial assets at fair value through other
comprehensive income (FVOCI):

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. 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.

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

A financial asset which does not meet
the amortized cost or FVTOCI criteria is
measured as FVTPL. Financial assets at
FVTPL are measured at fair value at the end
of each reporting period, with any gains or
losses on re-measurement recognized in
statement of profit or loss. The gain or loss
on disposal and interest income earned on
FVTPL is recognized.

(iv) Impairment of Financial Assets

The Company assesses at each date of
balance sheet whether a financial asset or a
Company of financial assets is impaired. Ind
AS 109 requires expected credit losses to be
measured through a loss allowance.

I n determining the allowances for doubtful
trade receivables, the Company has used
a practical expedient by computing the
expected credit loss allowance for trade
receivables based on a provision matrix.
The provision matrix takes into account
historical credit loss experience and is
adjusted for forward looking information.
The expected credit loss allowance is based
on the ageing of the receivables that are due
and rates used in the provision matrix. The

application of simplified approach does not
require the Company to track changes in
credit risk. Rather, it recognizes impairment
loss allowance based on lifetime ECLs at
each reporting date, right from its initial
recognition.

For all other financial assets, expected credit
losses are measured at an amount equal
to the 12-month expected credit losses on
a forward looking basis. However, if the
credit risk on the financial instruments
has increased significantly since the initial
recognition, then the Company measures
lifetime ECL.

The amount of ECL (or reversal) that is
required to adjust the loss allowance at the
reporting date is recognized as an impairment
gain/loss under “ Other Expenses ” in the
Standalone Statement of Profit and Loss.

(v) Derecognition of Financial Assets

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.

- the Company retains contractual rights
to receive the cash flows of the financial
asset but assumes a contractual
obligation to pay the cash flows to one
or more recipients.

When the entity has neither transferred a
financial asset nor retained substantially all
risks and rewards of ownership of the financial
asset, the financial asset is derecognized if
the Company has not retained control of the
financial asset. Where the Company retains
control of the financial asset, the asset
is continued to be recognized to extent of
continuing involvement in the financial asset.

(b) Financial Liabilities:

(i) Initial recognition and measurement

Financial liabilities are classified as financial
liabilities at amortized cost. All financial
liabilities are recognized initially at fair
value, except in the case of borrowings

on termination of employment, of an amount
based on the respective employees' salary
and tenure of employment. Vesting occurs
upon completion of five years of service.
Gratuity liabilities are determined by actuarial
valuation, performed by an independent actuary, at
each reporting date using the projected unit credit
method. The Company recognizes the obligation
of a defined benefit plan in its balance sheet as
a liability in accordance with IAS 19 - “Employee
Benefits." The discount rate is based on the
government securities yield. Re-measurements,
comprising actuarial gains and losses are
recorded in other comprehensive income in the
period in which they arise. Re-measurements
recognized in other comprehensive income is
reflected immediately in retained earnings and
is not reclassified to profit or loss. Past service
cost is recognized in the Statement of Profit
and Loss in the period of plan amendment.
Costs comprising service cost (including current
and past service cost and gains and losses on
curtailments and settlements) and net interest
expense or income is recognized in profit or loss.

2.11 Share Based Payments

Share-based compensation benefits are provided to
the employees via the Share based long term incentive
scheme.

The cost of equity-settled transactions is determined
by the fair value at the date when the grant is made
using an appropriate valuation model. That cost is
recognized, together with a corresponding increase
in share options outstanding account in equity, over
the period in which the performance and/or service
conditions are fulfilled in employee benefits expense.
The cumulative expense recognized for equity-settled
transactions at each reporting date until the vesting
date reflects the extent to which the vesting period
has expired and the Company's best estimate of the
number of equity instruments that will ultimately vest.
The expense or credit in the statement of profit and loss
for a period represents the movement in cumulative
expense recognized as at the beginning and end of that
period and is recognized in employee benefits expense.

The dilutive effect of outstanding options is reflected as
additional share dilution in the computation of diluted
earnings per share.