2. Significant Accounting Policies

2.1. Basis of Preparation of Financial Statements— This note provides a list of the
significant accounting policies adopted in preparing these financial statements. These
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
accounting policy hitherto in use.

2.1.1. Compliance with Ind AS - These standalone financial statements are prepared in
accordance with the provisions of the Companies Act, 2013 (''the Act''), guidelines
issued by the Securities and Exchange Board of India (SEBI) and Indian Accounting
Standard (Ind AS) under the historical cost convention on accrual basis except for
certain financial instruments which are measured at fair values, defined benefit
liability/(asset) which is recognized at the present value of defined benefit
obligation less fair value of plan assets. The Ind AS are prescribed under Section
133 of the Act, read with Rule 3 of the Companies (Indian Accounting Standards)
Rules, 2015 and relevant amendment rules issued thereafter.

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. The material
accounting policy information used in preparation of the audited standalone
interim financial statements have been discussed in the respective notes.

The financial statements are presented in Indian Rupees, and all amounts
disclosed in the financial statements and notes are expressed in thousands,
rounded to the nearest thousand, in accordance with the requirements of Schedule
III of the Companies Act, 2013.

2.1.2. Presentation of financial statements

The financial statements (including balance sheet, statement of profit and loss and
the statement of changes in equity) are prepared and presented in accordance
with the format prescribed in Division II of Schedule III to the Companies Act,
2013, as amended from time to time. The statement of cash flows has been
prepared using the indirect method. The disclosure requirements with respect to
items in the balance sheet and statement of profit and loss, as prescribed in
Schedule III to the Act, are presented by way of notes forming part of the financial
statements along with the other notes required to be disclosed under the notified
Accounting Standards.

2.1.3. Operating cycle for current and non-current classification

The Company identifies assets/liabilities as current if the same are
receivable/payable within twelve months,s else the same are considered as
non-current

2.1.4. Use of Estimates and Judgments

Preparation of financial statements in conformity with Indian Accounting
Standards (Ind AS) requires the management of the Company to make estimates
and assumptions that affect the income and expense reported for the period and
assets, liabilities and disclosures reported as of the date of the financial
statements. Examples of such estimates include useful lives of tangible and
intangible assets, allowance for expected credit loss, future obligations in respect
of retirement benefit plans, considering the extension period for the determination
of lease term, etc. Actual results could vary from these 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 by
giving prospective impact in the standalone financial statements.

2.1.5. Recent accounting pronouncements

Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to
the existing standards under Companies (Indian Accounting Standards) Rules as
issued from time to time. For the year ended March 31, 2025, MCA has notified Ind
AS - 117 Insurance Contracts and amendments to Ind AS 116 - Leases, relating to
sale and leaseback transactions, applicable to the Company w.e.f. April 1, 2024. The
Company has reviewed the new pronouncements and based on its evaluation has
determined that it does not have any significant impact in its financial statement.

2.2. Property, plant and equipment - Property, plant and equipment are stated at historical
cost less depreciation. Historical cost includes expenditure that is directly attributable to
the acquisition of the items. Subsequent costs are included in the asset's carrying amount
or recognized 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 the cost of the
item can be measured reliably. The carrying amount of any component accounted for as a
separate asset is derecognized when replaced. All other repairs and maintenance are
recognized in profit or loss during the reporting period in which they are incurred.
Depreciation is provided pro-rata on the straight line method over the estimated useful
lives of assets, based on internal assessment and independent technical evaluation done
by the Management.

Gains and losses on disposals are determined by comparing net disposal proceeds with
the carrying amount of the asset. These are included in profit or loss within other income.

2.3. Intangible Assets - Intangible assets are stated at cost less accumulated amortization and
impairment, wherever applicable. Intangible assets are amortized over their respective
individual estimated useful lives on a straight-line basis from the date they are available
for use. The estimated useful life of an identifiable 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 flow from the asset.
The research costs are expensed as incurred. The development costs, which can be
capitalized, include the cost of material, direct labour and overhead costs that are directly
attributable to preparing the asset for its intended use. Amortization methods and useful
lives are reviewed periodically including at each financial year's end.

2.4. Impairment of non-financial assets -

Assessment is done at each balance sheet date as to whether there is any indication that
an asset may be impaired. If any such indication exists or when annual impairment testing
for an asset is required, an estimate of the recoverable amount of the
asset/cash-generating unit is made. The recoverable amount is higher of an asset's or
cash-generating unit's fair value less costs of disposal and its value in use. Value in use is
the present value of estimated future cash flows expected to arise from the continuing use
of an asset and from its disposal at the end of its useful life. For the purpose of assessing
impairment, the recoverable amount is determined for an individual asset unless the asset
does not generate cash inflows that are largely independent of those from other assets or
groups of assets. The smallest identifiable group of assets that generates cash inflows from
continuing use that are largely independent of the cash inflows from other assets or
groups of assets is considered as a cash generating unit (CGU). An asset or CGU whose
carrying value exceeds its recoverable amount is considered impaired and is written down
to its recoverable amount. Assessment is also done at each balance sheet for possible
reversal of an impairment loss recognized for an asset in prior accounting periods.

2.5. Foreign currency translations

2.5.1. Functional and presentation currency -Items included in the financial
statements of the Company are measured using the currency of the primary
economic environment in which the Company operates ('the functional currency’)
i.e., Indian Rupee (INR) which is its presentation currency as well.

2.5.2. Initial recognition - On initial recognition, all foreign currency transactions are
recorded by applying to the foreign currency amount the spot exchange rate
between the functional currency and the foreign currency at the date of the
transaction.

2.5.3. Subsequent recognition - As at the reporting date, foreign currency monetary
items are translated using the closing rate and non-monetary items that are
measured in terms of historical cost in a foreign currency are translated using the
exchange rate at the date of the initial transaction. Exchange gains and losses
arising on the settlement of monetary items or on translating monetary items at
rates different from those at which they were translated on initial recognition
during the year or in previous financial statements are recognised in profit or loss
in the year in which they arise.

2.5.4. Translation of foreign operations- The financial statements of foreign
operations are translated using the principles and procedures mentioned above
since these businesses are carried on as if it is an extension of the Company’s
operations.

2.6. Revenue Recognition

2.6.1. Revenue is recognised upon transfer of control of promised services to customers
in an amount that reflects the consideration we expect to receive in exchange for
those services.

2.6.2. Dividend income is recognized as and when the right to receive is established.
Interest on Bank fixed deposits is recognized on an accrual basis on certificates of
interest issued by banks.

2.6.3. Export benefits and other benefits are accounted for on an accrual basis. Export
entitlements are recognized as a reduction from material consumption when the
right to receive credit is established in respect of the exports made and when
there is no significant uncertainty regarding the ultimate collection of the
relevant export proceeds.

2.7. Income tax

2.7.1. The income tax expense or credit for the period is the tax payable on the current
period’s taxable income based on the applicable income tax rate for each
jurisdiction adjusted by changes in deferred tax assets and liabilities attributable
to temporary differences and to unused tax losses.

2.7.2. The current income tax is calculated on the basis of the tax rates and the tax laws
enacted or substantively enacted at the reporting date. Management periodically
evaluates positions taken in tax returns with respect to situations in which
applicable tax regulations are subject to interpretation. It establishes provisions or
makes reversals of provisions made in earlier years, where appropriate, on the
basis of amounts expected to be paid to / received from the tax authorities.

2.7.3. Deferred tax is recognized for all the temporary differences arising between the
tax bases of assets and liabilities and their carrying amounts in the financial
statements, subject to the consideration of prudence in respect of deferred tax
assets. Deferred tax assets are recognized and carried forward only if it is probable
that sufficient future taxable amounts will be available against which such deferred
tax assets can be realised. Deferred tax assets and liabilities are measured using
the 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 deferred
income tax asset is realized, or the deferred income tax liability is settled. The
carrying amount of deferred tax assets are reviewed at each Balance Sheet date
and reduced to the extent that it is no longer probable that sufficient taxable profit
will be available to allow all or part of the deferred tax asset to be utilised.
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.

2.7.4. Deferred tax liabilities are not recognised for temporary differences between the
carrying amount and tax bases of investments in subsidiaries, associates and
interest in joint arrangements where the company is able to control the timing of
the reversal of the temporary differences, and it is probable that the differences
will not reverse in the foreseeable future.

2.7.5. Deferred tax assets are not recognised for temporary differences between the
carrying amount and tax bases of investments in subsidiaries, associates and
interest in joint arrangements where it is not probable that the differences will
reverse in the foreseeable future and taxable profit will not be available against
which the temporary difference can be utilised.

2.7.6. Current and deferred tax is recognised in profit or loss, except to the extent that it
relates to items recognised in other comprehensive income or directly in equity. In
this case, the tax is also recognised in other comprehensive income or directly in
equity, respectively.

2.7.7. Deferred tax assets and liabilities are offset if a legally enforceable right exists to
set off current tax assets and liabilities and the deferred tax balances relate to the
same taxable authority. Current tax assets and liabilities are offset where the entity
has a legally enforceable right to offset and intends either to settle on a net basis or
to realize the asset and settle the liability simultaneously.