Corporate Information

MMP INDUSTRIES LIMITED (“the Company”) (CIN No. L32300MH1973PLC030813) is a Public Limited Company, domiciled and incorporated in India, under the provisions of Companies Act, 1956. The Registered office of the Company is situated at 211, Shri Mohini Complex, 345, Kingsway, KasturchandPark, Nagpur, (M.H.) - 440001. The books of accounts and other relevant records are maintained at B -24, MIDC Area, Hingna Industrial Estate, Hingna Road, Nagpur (M.H.) - 440016. The Company’s shares are listed company on “National Stock Exchange” (NSE).

The Company is primarily engaged in the business of manufacturing, sale, distribution, and trading of Aluminium Powder, Aluminium Pyro and Flake Powder, Aluminium Paste, Aluminium Conductors, and Aluminium Foils. The Company is also engaged in the manufacturing and trading of Manganese Oxide (MnO) and Manganese Dioxide (MnOi) Powder.

The Board of Directors approved the financial statements for the year ended March 31, 2026, and authorized for issue on May 23, 2026.

1. MATERIAL ACCOUNTING POLICIES AND KEY ACCOUNTING ESTIMATES AND JUDGEMENTSMATERIAL ACCOUNTING POLICIES1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

These standalone financial statements are the separate financial statements of the Company (also referred to as “the standalone financial statements”), prepared in accordance with Indian Accounting Standards (“Ind AS”) as notified under section 133 of the Companies Act, 2013 (“the Act”), read with the Companies (Indian Accounting Standards) Rules, 2015 and the Companies (Indian Accounting Standards) Amendment Rules, 2016, as amended from time to time. The preparation and presentation of these standalone financial statements are in accordance with Ind AS and Division - II of Schedule - III to the Companies Act, 2013.

Entity - specific disclosures of material accounting policies, where Indian Accounting Standards permit alternative accounting treatments, are set out hereunder:

The Company’s management and Board of Directors have assessed the materiality of accounting policy information, which involves the exercise of judgment and consideration of both qualitative and quantitative factors. Such assessment takes into account not only the size and nature of items or conditions, but also the characteristics of the related transactions, events, or circumstances that could make the information more likely to influence the decisions of users of the standalone financial statements. An entity’s conclusion that an accounting policy is immaterial does not affect the disclosures requirements set out in the Indian Accounting Standards.

The Company has adopted Ind AS from April 01, 2018. The accounting policies have been consistently applied, except where a newly issued accounting standard has been initially adopted or a revision to an existing accounting standard requires a change in the accounting policies hitherto adopted. These standalone financial statements have been prepared and presented under the historical cost convention on an accrual basis of accounting, except for certain financial assets and financial liabilities that are measured at fair value at the end of each reporting period. Historical cost is generally based on the fair value of the consideration given in exchange for goods and services. 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 standalone statement of cash flows has been prepared using the indirect method, whereby standalone profit or loss is adjusted for the effects of non - cash transactions, deferrals and accruals of past or future operating cash receipts or payments, and items of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing, and financing activities of the Company are separately presented. The Company considers all highly liquid investments that are readily convertible into known amounts of cash and are subject to an insignificant risk of changes in value as cash equivalents.

The Company’s standalone financial statements are prepared and presented in Indian Rupees (?) in lakhs, which is also the functional currency of the Company. All amounts are rounded off to the nearest ? in Lakhs up to two decimal places, unless otherwise stated.

1.2 APPLICATION OF NEW ACCOUNTING PRONOUNCEMENTS

The Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under the Companies (Indian Accounting Standard) Rules, as issued from time to time. In May 2025, MCA notified amendments to Ind AS - 21, “The Effects of Changes in Foreign Exchange Rates”, applicable w.e.f. April 01, 2025. The Company has evaluated the impact of the said amendments and concluded that they do not have any material impact on its standalone financial statements.

1.3 CURRENT AND NON - CURRENT CLASSIFICATION

The Company presents the assets and liabilities in the balance sheet based on current / non - current classification. An asset or liabilities is classified as current when it satisfies any of the following criteria:

i) The assets / liabilities are expected to be realized / settled in the Company’s normal operating cycle.

ii) The assets are intended for sales or consumption.

iii) The assets / liabilities are held primarily for the purpose of trading.

iv) The assets / liabilities are expected to be realized / settled within twelve months after the end of reporting date.

v) The assets are cash or cash equivalents unless they are restricted from being exchanged or used to settle liabilities for at least twelve months after the reporting period.

vi) In the case of liabilities, the Company does not have an unconditional right to defer the settlement of the liabilities for at least twelve months after the reporting date.

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

For the purpose of current and non - current classification of assets and liabilities, the Company has determined its operating cycle as twelve (12) months. This is based on the nature of its operations and the time between the acquisition of assets or inventories for processing and their realization in cash and cash equivalents.

1.4 SUMMARY OF MATERIAL ACCOUNTING POLICIES

a) Property, Plants and Equipment

Measurement at Recognition

An item of property, plants and equipment that qualifies for recognition as an asset is initial measured at cost. Subsequent to initial recognition, such item of property, plants and equipment are carried at cost less accumulated depreciation and accumulated impairment losses, if any. The Company identifies and accounts for each significant component of an item of property, plants and equipment separately, where the cost of such component is significant to the total cost of the assets and its useful life differs materially from that of the remaining components of the assets.

The cost of an item of property, plants and equipment comprises its purchase price, net of discounts, if any, including import duties and other non - refundable purchase taxes or levies, and any directly attributable costs of bringing the asset to its present location and condition necessary for it to be capable of operating in the manner intended by management. It also includes the initial estimate of costs of dismantling, removing, and restoring the site on which the asset is located, if any. Cost further includes the cost of replacing parts of property, plants and equipment, where the recognition criteria are met. Expenditure directly attributable to the construction of new manufacturing facilities is capitalized during the construction period, provided the recognition criteria are satisfied. Similarly, expenditure incurred on plans, designs, and drawings relating to buildings, plants, and machinery is capitalized under the relevant categories of property, plants and equipment. When significant components of property, plants and equipment are required to be replaced at regular intervals, the Company recognizes such components as separate assets with specific useful lives and depreciates them accordingly.

Subsequent costs are included in the carrying amount of the asset or recognized as a separate asset, as appropriate, only when it is probable that the 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 upon its replacement.

All costs, including administrative, financing, and general overhead expenses, that are directly attributable to the construction of a specific project or to the acquisition of property, plants and equipment, or for bringing such assets to their present location and condition necessary for their intended use, are included as part of the cost of construction or the cost of property, plants and equipment, as the case may be, up to the date of commencement of commercial production. Any adjustments arising from exchange rate variations attributable to property, plants and equipment are capitalized as stated above, in accordance with applicable Indian Accounting Standards.

Borrowing costs directly attributable to the acquisition or construction of property, plants and equipment that necessarily take a substantial period of time to get ready for their intended use are capitalized as part of the cost of such assets, to the extent they relate to the period up to the date the assets are ready for their intended use.

Subsequent expenditure related to an item of property, plants and equipment is added to it carrying amount only if it is probable that such expenditure will result in an increase in future economic benefits from the asset beyond its previously assessed standard of performance.

Items such as spare parts, stand-by equipment, and servicing equipment that meet the definition of property, plants and equipment are capitalized at cost and depreciated over their respective useful lives. Expenditure in the nature of repairs and maintenance is recognized in the Standalone Statement of Profit and Loss as and when incurred.

Capital Work-in-Progress and Capital Advances

The cost of property, plants and equipment that are not yet ready for their intended use as at the Standalone Balance Sheet date is disclosed under “Capital Work-in-Progress” (CWIP) and is carried at cost. Expenditure incurred on survey and investigation activities relating to projects is initially recognized as part of CWIP. Such expenditure is capitalized as part of the cost of the relevant asset upon completion of the project. In cases where the project is abandoned, the related expenditure is charged to the Standalone Statement of Profit and Loss in the period in which the decision to abandon the project is made. Advances paid towards the acquisition of property, plants and equipment outstanding as at each Standalone Balance Sheet date are disclosed under “Other Non - Current Assets”.

Depreciation

Depreciation on property, plants and equipment is provided on a pro-rata basis over the useful lives of the assets, using the “Straight Line Method (SLM)”, so as to allocate the depreciable amount of the assets over their estimated useful lives. Depreciation is recognized in the Standalone Statement of Profit and Loss in accordance with the requirements of Schedule - II to the Companies Act, 2013. The estimated useful lives of property, plants and equipment are determined based on technical evaluation and are aligned, where appropriate, with the useful lives prescribed under Schedule - II. Such estimates consider factors including the nature of the asset, its expected usage, physical wear and tear, operating conditions, anticipated technological changes, manufacturer’s warranties, and maintenance support.

Where an item of property, plants and equipment comprises significant components with different useful lives, such components are accounted for separately (major components) and are depreciated over their respective useful lives or the remaining useful life of the principal asset, whichever is lower.

The useful lives of the items of property, plants and equipment as estimated by the Company’s management is mentioned below:

The Company based on technical assessment made by the technical experts and the Company’s management estimate, depreciate certain items of property, plants and equipment over the estimated useful lives which are different from the useful lives as prescribed under Schedule - II of the Companies Act, 2013. The Company’s management believes that the useful lives given above are best to represent the period over which Company’s management expects to use this property, plants and equipment.

Freehold land is not depreciated. Leasehold land and leasehold improvements are amortised over the period of the respective lease.

The useful lives, residual values, and method of depreciation of each item of property, plants and equipment are reviewed at the end of each reporting period. If there is any change in these estimates compared to previous assessments, such changes are accounted for as changes in accounting estimates and are applied prospectively, where appropriate.

An item of property, plants and equipment is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. The gain or loss arising on derecognition is measured as the difference between the net disposal proceeds and the carrying amount of the asset and is recognized in the Standalone Statement of Profit and Loss at the time of derecognition.

b) Intangible Assets

Measurement at Recognition

Intangible assets acquired separately are initially recognised at cost. Intangible assets acquired in a business combination are recognised at their fair value as at the date of acquisition. Internally generated intangible assets, including expenditure on research activities, are not capitalized, and such expenditure is recognized in the Standalone Statement of Profit and Loss in the period in which it is incurred. Subsequent to initial recognition, intangible assets are carried at cost less accumulated amortisation and accumulated impairment losses, if any.

Amortization

Intangible assets with finite useful lives are amortised on a “Straight - Line Basis” over their estimated useful economic lives. The amortisation expense on such intangible assets is recognized in the Standalone Statement of Profit and Loss. The estimated useful lives of such intangible assets are mentioned below:

The amortisation period and the amortisation method for intangible assets with finite useful lives are reviewed at the end of each financial year. If there are any changes in the expected useful life or the pattern of consumption of future economic benefits compared to previous estimates, such changes are treated as changes in accounting estimates and are applied prospectively, where appropriate.

Derecognition

An intangible asset is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. The gain or loss arising on derecognition is measured as the difference between the net disposal proceeds and the carrying amount of the intangible asset and is recognized in the Standalone Statement of Profit and Loss at the time of derecognition.

c) Impairment

The Company assesses at each Standalone Balance Sheet date whether there are any indications that a non -financial asset may be impaired. Intangible assets with indefinite useful lives are not amortized and are tested for impairment annually, or more frequently if events or changes in circumstances indicate that they may be impaired.

Assets that are subject to depreciation or amortization, as well as investments in subsidiaries and associates, are reviewed for impairment whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. Such indicators include, but are not limited to, significant or sustained declines in revenues or earnings and material adverse changes in the economic environment.

Where any such indication exists, the Company estimates the recoverable amount of the asset or its Cash Generating Unit (CGU). If the carrying amount of the asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. The recoverable amount is the higher of its fair value less costs of disposal and its value in use. In determining value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For assets that do not generate independent cash inflows, the recoverable amount is determined at the level of the CGU to which the asset belongs.

After recognition of an impairment loss, depreciation or amortization is provided on the revised carrying amount of the asset over its remaining useful life. Impairment losses recognized in prior periods are reviewed at each reporting date for any indications that the loss has decreased or no longer exists. If such indication exists, the impairment loss is reversed to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined (net of depreciation or amortization) had no impairment loss been recognized in prior periods.

Impairment losses and reversals thereof are recognized in the Standalone Statement of Profit and Loss and are presented within depreciation and amortization expense.

d) Revenue Recognition

Revenue from Contracts with Customers

Revenue from contracts with customers is recognised upon the transfer of control of promised goods or services to the customer, at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. Revenue is measured based on the transaction price, which is allocated to each performance obligation. The transaction price is adjusted for variable consideration, including discounts, rebates, and incentive schemes offered by the Company under the terms of the contract. Such variable consideration is estimated using the expected value method. Revenue (net of variable consideration) is recognised only to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur when the uncertainty associated with the variable consideration is subsequently resolved.

Sale of Products

Revenue from the sale of goods is recognised when control of the goods is transferred to the customer. The performance obligation in such cases is satisfied at a point in time, generally upon dispatch of goods to the customer or upon delivery, as specified in the terms of the contract. Revenue is measured at the transaction price and is presented net of Goods and Services Tax (GST), discounts, rebates, and incentives offered to customers.

Sale of Services

Revenue from the rendering of services is recognized over time, based on the progress towards satisfaction of the performance obligation. The stage of completion is measured in accordance with the terms of the underlying agreements or arrangements with customers, as the services are performed.

Advances received from customers are recognized as contract liabilities under “Other Current Liabilities” and are recognized as revenue upon satisfaction of the related performance obligations.

e) Government Grants and Subsidies Recognition and Measurements

Government grants are recognized when there is reasonable assurance that the Company will comply with the conditions attached to them and that the grants will be received, in accordance with Ind AS 20, “Accounting for Government Grants and Disclosure of Government Assistance”. Government grants are recognized in the Standalone Statement of Profit and Loss on a systematic basis over the periods in which the related costs that the grants are intended to compensate are recognized as expenses. Government grants related to property, plants and equipment are measured at fair value and are recognised as deferred income. Such grants are subsequently recognized in the Standalone Statement of Profit and Loss on a systematic basis over the useful lives of the related assets.

Presentation

Income from such grants and subsidies is presented under “Revenue from Operations”, where it is considered to be in the nature of operating income. Government grants related to property, plants and equipment are measured at fair value and are recognized as deferred income. Such grants are subsequently recognised in the Standalone Statement of Profit and Loss on a systematic basis over the useful lives of the related assets.

f) Inventories

Inventories, including raw materials, work-in-progress, finished goods, packing materials, stores and spares, components, consumables, and trading stock, are valued at the lower of cost and net realizable value. However, 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. The comparison of cost and net realizable value is made on an item-by-item basis.

Cost of inventories is determined using the weighted average method. The cost comprises all costs of purchase, including non-refundable duties and taxes, costs of conversion including an appropriate allocation of fixed and variable production overheads, and other costs incurred in bringing the inventories to their present location and condition. Net realizable value represents the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.

The Company evaluates the condition of inventories at each reporting date and makes provision for slow-moving, obsolete, and non-saleable inventories, based on factors such as shelf life, product discontinuance, and ageing analysis, to reflect the net realisable value of such inventories.

g) Financial Instruments

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

Financial AssetsInitial Recognition and Measurements

The Company recognizes a financial asset in its Standalone Balance Sheet when it becomes a party to the contractual provisions of the instrument. Financial assets are initially recognized at fair value, plus, in the case of financial assets not measured at fair value through profit or loss (FVTPL), transaction costs that are directly attributable to the acquisition of the financial asset. However, trade receivables that do not contain a significant financing component are measured at their transaction price. Where the fair value of a financial asset at initial recognition differs from its transaction price, the difference is recognized as a gain or loss in the Standalone Statement of Profit and Loss, provided that the fair value is evidenced by a quoted price in an active market for an identical asset (Level 1 input) or is based on a valuation technique that uses observable market data (Level 2 inputs).

In cases where the fair value is not determined using Level 1 or Level 2 inputs, the difference between the transaction price and fair value is deferred and recognized as a gain or loss in the Standalone Statement of Profit and Loss only to the extent that it arises from a change in factors that market participants would consider in pricing the financial asset.

Subsequent Measurements

For subsequent measurements, the Company classifies a financial asset in accordance with the below criteria:

i) The Company’s business model for managing the financial assets and

ii) The contractual cash flows characteristics of the financial assets.

Based on the above criteria, the Company classifies, its financial assets into the following categories:

i) Financial assets measured at amortized costs

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

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

Financial Assets measured at Amortized Costs

A financial asset is measured at amortized costs if both of the following conditions are met:

a) The financial asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows; and

b) 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 (SPPI criterion).

This category includes cash and bank balances, trade receivables, loans, and other financial assets of the Company. Such financial assets are subsequently measured at amortised cost using the effective interest method (EIR). Under this method, future cash flows are discounted to their present value at the time of initial recognition using the effective interest rate. The difference between the initial recognition amount and the maturity amount is amortised over the life of the financial asset and is recognised as interest income in the Standalone Statement of Profit and Loss under “Other Income”. The amortised cost of financial assets is adjusted for any loss allowance recognised for expected credit losses, where applicable.

Financial Assets measured at FVTOCI

A financial asset is measured at FVTOCI, if both of the following conditions are met:

a) The financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and

b) 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 (SPPI criterion).

This category primarily applies to certain investments in debt instruments. Such financial assets are subsequently measured at fair value at each reporting date. Changes in fair value are recognized in Standalone Other Comprehensive Income (OCI). However, interest income, impairment losses, and reversals thereof are recognized in the Standalone Statement of Profit and Loss.

Upon derecognition of such debt instruments, the cumulative gain or loss previously recognized in OCI is reclassified from equity to the Standalone Statement of Profit and Loss.

Further, the Company has made an irrevocable election at initial recognition, on an instrument-by-instrument basis, to designate certain equity instruments as measured at FVTOCI. These equity instruments are not held for trading nor represent contingent consideration arising from a business combination. Subsequent changes in the fair value of such equity instruments are recognised in OCI. Dividend income from such equity instruments is recognised in the Standalone Statement of Profit and Loss when the Company’s right to receive payment is established, it is probable that the economic benefits will flow to the Company, and the amount can be measured reliably.

Upon derecognition of such equity instruments, the cumulative gain or loss previously recognised in OCI is not reclassified to the Standalone Statement of Profit and Loss. Instead, it may be transferred within equity to retained earnings.

Financial Assets measured at FVTPL

A financial asset is measured at fair value through profit or loss (FVTPL) unless it is measured at amortised cost or at fair value through other comprehensive income (FVTOCI) as described above. This is a residual category and applies to all other financial assets of the Company, excluding investments in subsidiaries and associates. Such financial assets are subsequently measured at fair value at each reporting date, with all changes in fair value recognised in the Standalone Statement of Profit and Loss.

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognized (i.e., removed from the Company’s Balance Sheet) when any of the following conditions are met:

i) The contractual rights to cash flows from the financial assets expire.

ii) The Company has transferred its contractual rights to receive cash flows from the financial asset and has substantially transferred all the risks and rewards of ownership of the financial asset.

iii) The Company retains the contractual rights to receive cash flows from the financial asset but assumes a contractual obligation to pass on those cash flows, without material delay, to one or more recipients under a “pass-through” arrangement, thereby substantially transferring all the risks and rewards of ownership of the financial asset.

iv) The Company neither transfers nor retains substantially all the risks and rewards of ownership of the financial asset and does not retain control over the financial asset.

In cases where the Company neither transfers nor retains substantially all the risks and rewards of ownership of a financial asset but retains control over the asset, the Company continues to recognize the financial asset to the extent of its continuing involvement. In such cases, the Company also recognizes an associated liability. The financial asset and the associated liability are measured on a basis that reflects the rights and obligations retained by the Company.

On derecognition of financial assets (except for financial assets measured at FVTOCI as described above), the difference between the carrying amount of the asset and the consideration received is recognized in the Standalone Statement of Profit and Loss.

Impairment of Financial Assets

The Company applies expected credit losses (ECL) model for measurements and recognition of loss allowance on the following:

i) Trade receivables

ii) Financial assets measured at amortized costs (other than trade receivables)

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

The Company applies the expected credit loss (ECL) model for recognition and measurement of impairment on financial assets measured at amortised cost and at fair value through other comprehensive income (FVTOCI). In the case of trade receivables, the Company follows the simplified approach, whereby an amount equal to lifetime ECL is recognised as a loss allowance.

For other financial assets, the Company applies the general approach and assesses at each reporting date whether there has been a significant increase in credit risk since initial recognition. If the credit risk has not increased significantly, an amount equal to twelve-month ECL is recognised. If the credit risk has increased significantly, an amount equal to lifetime ECL is recognised. Subsequently, if the credit quality improves such that there is no longer a significant increase in credit risk, the Company reverts to recognising loss allowance based on twelvemonth ECL. ECL represents the difference between the contractual cash flows due to the Company in accordance with the contract and the cash flows that the Company expects to receive, discounted at the original effective interest rate. Lifetime ECL represents expected credit losses resulting from all possible default events over the expected life of the financial asset, whereas twelve-month ECL represents a portion of lifetime ECL attributable to default events possible within twelve months from the reporting date.

ECL is measured in a manner that reflects unbiased and probability-weighted amounts determined using a range of possible outcomes, taking into account the time value of money and all reasonable and supportable information available about past events, current conditions, and forecasts of future economic conditions. As a practical expedient, the Company uses a provision matrix to determine lifetime ECL for its portfolio of trade receivables. The provision matrix is based on historically observed default rates over the expected life of the receivables and is adjusted for forward-looking information. At each reporting date, these historical default rates and forwardlooking estimates are updated.

ECL impairment loss allowance (or reversal thereof) recognised during the reporting period is recognised in the Standalone Statement of Profit and Loss under “Other Expenses”.

Financial LiabilitiesInitial Recognition and Measurements

The Company recognises a financial liability in its Standalone Balance Sheet when it becomes a party to the contractual provisions of the instrument. Financial liabilities are initially recognised at fair value, and, in the case of financial liabilities not measured at fair value through profit or loss (FVTPL), are adjusted for transaction costs that are directly attributable to the issue of the financial liabilities.

Where the fair value of a financial liability at initial recognition differs from its transaction price, the difference is recognised as a gain or loss in the Standalone Statement of Profit and Loss, provided that the fair value is evidenced by a quoted price in an active market for an identical instrument (Level 1 input) or is based on a valuation technique that uses observable market data (Level 2 inputs). In cases where the fair value is not determined using Level 1 or Level 2 inputs, the difference between the transaction price and fair value is deferred and recognised in the Standalone Statement of Profit and Loss only to the extent that it arises from a change in factors that market participants would consider in pricing the financial liability.

Subsequent Measurements

All financial liabilities of the Company are subsequently measured at amortised cost using the effective interest method (EIR).

Under the effective interest method, future cash payments are discounted to their present value at initial recognition using the effective interest rate. The difference between the initial recognition amount and the maturity amount is amortised over the tenure of the financial liability. The amortised cost at each reporting date represents the initial recognition amount adjusted for principal repayments and the cumulative amortisation of such difference.

The corresponding amortisation under the effective interest method is recognised as interest expense over the period of the financial liability and is presented under “Finance Costs” in the Standalone Statement of Profit and Loss.

Derecognition

A financial liability is derecognised when the obligation under the liability is discharged, cancelled, or expires. Where an existing financial liability is replaced by another from the same lender on substantially different terms, or where the terms of an existing liability are substantially modified, such an exchange or modification is accounted

for as a derecognition of the original liability and the recognition of a new financial liability. The difference between the carrying amount of the financial liability derecognised and the consideration paid is recognised in the Standalone Statement of Profit and Loss.

Offsetting of Financial Assets and Financial Liabilities

Financial assets and financial liabilities are offset, and the net amount is presented in the Standalone Balance Sheet when there is a legally enforceable right to set off the recognised amounts and there is an intention either to settle on a net basis or to realise the assets and settle the liabilities simultaneously.

h) Derivative Financial Instruments and Hedge Accounting

The Company enters into derivative financial instruments in the form of forward currency contracts with external counterparties to hedge foreign currency risks arising from foreign currency denominated financial liabilities measured at amortized cost. The Company formally designates and documents the hedge relationship between such forward currency contracts (“Hedging Instruments”) and the recognized financial liabilities (“Hedged Items”) at the inception of the hedge relationship, in accordance with its risk management objectives and hedging strategy.

The designated hedge relationship is accounted for in accordance with the principles of fair value hedge accounting prescribed under Ind AS 109, “Financial Instruments”.

Recognition and Measurement of Fair Value Hedge

Hedging instruments are initially recognized at fair value on the date the derivative contract is entered into and are subsequently remeasured at fair value at each reporting date. Gains or losses arising from changes in the fair value of the hedging instruments are recognized in the Standalone Statement of Profit and Loss. Hedging instruments are presented as financial assets in the Standalone Balance Sheet when their fair value at the reporting date is positive and as financial liabilities when their fair value at the reporting date is negative.

Hedged items, being recognised financial liabilities, are initially recognised at fair value on the date of entering into the contractual obligation and are subsequently measured at amortised cost. The gain or loss attributable to the hedged risk on the hedged items is adjusted to the carrying amount of the hedged items using the effective interest method, with the corresponding impact recognised in the Standalone Statement of Profit and Loss.

Derecognition

On derecognition of the hedged items, any unamortised fair value adjustment relating to the hedging relationship that has been adjusted to the carrying amount of the hedged items is recognised in the Standalone Statement of Profit and Loss.

i) Fair Value

The Company measures financial instruments at fair value in accordance with the accounting policies as stated 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.

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. All assets and liabilities for which fair value is measured or disclosed in the standalone financial statements are categorised within a fair value hierarchy based on the inputs used in the valuation techniques. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1 inputs) and the lowest priority to unobservable inputs (Level 3 inputs). The levels of the hierarchy are described as follows:

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

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the assets or liabilities, either directly or indirectly.

Level 3 - Inputs that are unobservable for the assets or liabilities.

For assets and liabilities recognized at fair value on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by reassessing the categorization at the end of each reporting period and discloses such transfers, if any.

j) Investment in Subsidiary Companies and Associates Companies

The Company has elected to account for its investments in subsidiary companies and associate companies at cost in accordance with the option available under Ind AS 27, “Separate Financial Statements”. Accordingly, investments in subsidiaries and associates are carried at cost less accumulated impairment losses, if any. Cost comprises the consideration paid on initial recognition, including adjustments for embedded derivatives and estimated contingent consideration (earn-out arrangements), where applicable. Contingent consideration is remeasured at fair value at each reporting date, and any changes in its fair value are recognized in the Standalone Statement of Profit and Loss.

Where there is an indication of impairment, the carrying amount of the investment is assessed and written down immediately to its recoverable amount. Upon disposal of investments in subsidiaries and associates, the difference between the net disposal proceeds and the carrying amount of such investments is recognised in the Standalone Statement of Profit and Loss.

k) Investment in Preference Shares

Investments in preference shares of subsidiary companies are accounted for in accordance with Ind AS 27, “Separate Financial Statements”. The Company has elected to carry such investments at cost less accumulated impairment losses, if any. Investments are initially recognized at cost, including directly attributable acquisition costs.

Dividend income on such investments is recognized in the Standalone Statement of Profit and Loss when the Company’s right to receive the dividend is established and it is probable that the economic benefits associated with the transaction will flow to the Company.

The Company assesses, at each reporting date, whether there is any indication of impairment in respect of such investments and recognizes impairment losses, where necessary, in the Standalone Statement of Profit and Loss. Upon disposal or derecognition of such investments, the difference between the carrying amount and the consideration received is recognized in the Standalone Statement of Profit and Loss.

l) Foreign Currency Transactions

a) Initial Recognition

Transactions in foreign currencies are initially recorded in the functional currency (i.e., Indian Rupee ?) at the exchange rates prevailing on the date of the transaction (spot rate). Exchange differences arising on settlement of monetary items during the reporting period are recognized in the Standalone Statement of Profit and Loss. However, exchange differences arising on foreign currency borrowings, to the extent that they are regarded as an adjustment to borrowing costs directly attributable to the acquisition or construction of qualifying assets, are capitalised as part of the cost of such assets in accordance with the Indian Accounting Standards.

b) Measurement of Foreign Currency Items at Reporting Date

Monetary items denominated in foreign currencies are restated at the reporting date using the closing exchange rate as notified by the Reserve Bank of India. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rate prevailing at the date on which the fair value is determined. Exchange differences arising on settlement or translation of monetary items are recognised in the Standalone Statement of Profit and Loss in the period in which they arise.

m) Taxes on Income

Tax expense comprises current tax and deferred tax. It represents the aggregate amount included in the determination of profit or loss for the reporting period. Tax expense is recognised in the Standalone Statement of Profit and Loss, except to the extent that it relates to items recognised in Standalone Other Comprehensive Income (OCI) or directly in equity, in which case the tax is also recognised in OCI or equity, as applicable.

Current tax is the amount of income tax payable in respect of taxable profit for the reporting period. Taxable profit differs from “ProfitBefore Tax” as reported in the Standalone Statement of Profit and Loss due to items of income or expense that are taxable or deductible in other periods and items that are never taxable or deductible under the Income Tax Act, 1961. Current tax assets and liabilities are measured using the tax rates enacted or substantively enacted at the reporting date. Current tax also includes adjustments relating to prior periods.

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the standalone financial statements and their respective tax bases. Deferred tax is measured using the tax rates and tax

laws that have been enacted or substantively enacted as at the reporting date.

Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are recognised for all deductible temporary differences, unused tax losses, and unused tax credits to the extent that it is probable that taxable profits will be available against which such deductible temporary differences and losses can be utilised.

However, deferred tax is not recognised for temporary differences arising from:

The initial recognition of assets or liabilities in a transaction (other than a business combination) that, at the time of the transaction, affects neither accounting profit nor taxable profit and does not give rise to equal taxable and deductible temporary differences; and

The initial recognition of goodwill (in the case of deferred tax liabilities).

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the deferred tax asset to be utilised. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the asset is realised or the liability is settled, based on tax rates and laws that have been enacted or substantively enacted by the Standalone Balance Sheet date.

Uncertain Tax Positions

The Company’s management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulations are subject to interpretation and assesses whether it is probable that a taxation authority will accept the uncertain tax treatment. The Company reflects the effect of uncertainty for each uncertain tax treatment using either the expected value method (i.e., the sum of probability-weighted amounts in a range of possible outcomes) or the most likely amount method (i.e., the single most likely outcome), depending on which method better predicts the resolution of the uncertainty. The Company applies consistent judgments and estimates in determining the effects of uncertain tax positions. Where an uncertain tax treatment affects both current and deferred tax, the Company applies the same approach consistently to both.

Presentation

Current tax and deferred tax are recognised as income or expense in the Standalone Statement of Profit and Loss, except to the extent that they relate to items recognised in Standalone Other Comprehensive Income (OCI), in which case the related tax is also recognised in Standalone OCI. The Company offsets current tax assets and current tax liabilities when it has a legally enforceable right to set off the recognised amounts and intends either to settle on a net basis or to realise the assets and settle the liabilities simultaneously.

Deferred tax assets and deferred tax liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities, and when the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority on the Company.

n) Lease

A lease is classified at the inception date as either a finance lease or an operating lease. A lease that transfers substantially all the risks and rewards incidental to ownership of the underlying asset to the Company is classified as a finance lease. All other leases are classified as operating leases.

The Company as a Lessee

a) Operating Lease: Lease payments under operating leases are recognized as an expense in the Standalone Statement of Profit and Loss on a Straight - Line basis over the lease term, unless another systematic basis is more representative of the time pattern in which the economic benefits from the leased asset are consumed.

b) Finance Lease: Finance leases are recognised at the commencement of the lease at the lower of the fair value of the leased asset and the present value of the minimum lease payments. The corresponding liability to the lessor is recognised in the Standalone Balance Sheet as a finance lease obligation. Lease payments are apportioned between finance costs and the reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability. Finance costs are recognised in the Standalone Statement of Profit and Loss over the lease term unless they are directly attributable to qualifying assets, in which case they are capitalised in accordance with the Company’s borrowing cost policy. Contingent rentals are recognised as an expense in the period in which they are incurred. Assets acquired under finance leases are depreciated over their useful lives. However, where there is no reasonable certainty that the Company will obtain ownership of the asset at the end of the lease term, such assets are depreciated over the shorter of the lease term and their useful lives.

The Company as a Lessor:

Lease income from operating leases is recognized in the Standalone Statement of Profit and Loss on a straightline basis over the lease term, unless the lease payments are structured to increase in line with expected general inflation, in which case such increases are recognised as incurred. The underlying leased assets are presented in the Standalone Balance Sheet in accordance with their nature.

o) Borrowing Costs

Borrowing costs include interest expense, commitment charges on bank borrowings, amortisation of ancillary costs incurred in connection with the arrangement of borrowings, and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to borrowing costs.

Borrowing costs that are directly attributable to the acquisition, construction, or production of a qualifying asset are capitalised as part of the cost of such asset until it is substantially ready for its intended use or sale. Qualifying assets are those assets that necessarily take a substantial period of time to get ready for their intended use or sale.

Where the Company borrows funds specifically for the purpose of obtaining a qualifying asset, the borrowing costs incurred on such borrowings are capitalised. Where the Company uses general borrowings for the purpose of obtaining a qualifying asset, the borrowing costs are capitalised using a capitalisation rate based on the weighted average cost of general borrowings outstanding during the period.

Capitalisation of borrowing costs commences when expenditures for the asset are incurred, borrowing costs are incurred, and activities necessary to prepare the asset for its intended use or sale are in progress. Capitalisation ceases when substantially all the activities necessary to prepare the qualifying asset for its intended use or sale are complete.

Any income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.

All other borrowing costs are recognised as an expense in the Standalone Statement of Profit and Loss in the period in which they are incurred.

p) Employee Benefits

Short - Term Employee Benefits

Employee benefits payable wholly within twelve months of rendering the related service are classified as shortterm employee benefits. Such benefits are recognised in the period in which the employee renders the related service. The Company recognises the undiscounted amount of short-term employee benefits expected to be paid in exchange for services rendered as a liability (accrued expense), after deducting any amounts already paid.

Post - Employment Benefits

a) Defined Contribution Plans

Defined contribution plans include contributions to the Employees’ State Insurance Scheme (ESIC), government-administered provident fund schemes, and the superannuation scheme for eligible employees who meet the prescribed criteria. The Company’s contributions to defined contribution plans are recognised as an expense in the Standalone Statement of Profit and Loss in the period in which the employees render the related services.

i) Recognition and Measurement of Defined Contribution Plans

The Company recognises contributions payable to defined contribution plans as an expense in the Standalone Statement of Profit and Loss in the period in which the employees render the related services. If the contributions payable for services received from employees up to the reporting date exceed the contributions already paid, the shortfall is recognised as a liability after deducting the amounts already paid. Conversely, if the contributions already paid exceed the contributions due for services received up to the reporting date, the excess is recognised as an asset to the extent that it will result in a future reduction in payments or a cash refund.

b) Defined Benefits Plans

i) Gratuity

The Company operates a defined benefit plan for its employees in respect of gratuity. The Company pays gratuity to employees who have completed a minimum of five years of continuous service at the time of retirement, resignation, or superannuation. Gratuity is payable at the rate of 15 days’ salary for each completed year of service.

The liability in respect of gratuity is determined using the “Projected Unit Credit Method” and is spread over the period during which the benefits are expected to be derived from employee service. Remeasurements of the net defined benefit liability, comprising actuarial gains and losses, are recognised in Standalone Other Comprehensive Income (OCI) in the period in which they arise and are not reclassified to the Standalone Statement of Profit and Loss.

ii) Provident Fund Scheme

Provident fund is a defined contribution plan covering certain eligible employees. The Company and eligible employees make monthly contributions to the provident fund maintained with the Regional Provident Fund Commissioners, at a specified percentage of the employees’ basic salary, in accordance with the applicable scheme. The Company’s contributions to the provident fund are recognised as an expense in the Standalone Statement of Profit and Loss in the period in which they become due. The Company has no further obligation beyond its contributions to the fund.

iii) Pension Scheme

The Company operates a defined benefit pension plan for certain specified employees, which is payable upon the employees satisfying prescribed conditions, as approved by the Board of Directors.

iv) Post - Retirement Medical Benefit Plan

The Company operates a defined post-retirement medical benefits plan for certain specified employees, which is payable upon the employees satisfying prescribed conditions.

v) Leave Encashment

Accumulated leave expected to be utilised within the next twelve months is treated as a short-term employee benefit for measurement purposes. The Company measures the expected cost of such absences as the additional amount expected to be paid as a result of unused entitlement that has accumulated at the reporting date. Accumulated leave expected to be carried forward beyond twelve months is treated as a long-term employee benefit. Such long-term compensated absences are measured based on actuarial valuation using the “Projected Unit Credit Method” at the reporting date. Actuarial gains and losses are recognised immediately in the Standalone Statement of Profit and Loss and are not deferred.

Recognition and Measurement of Defined Contribution Plans

The cost of providing defined benefits is determined using the “Projected Unit Credit Method”, with actuarial valuations carried out at each Standalone Balance Sheet date. The defined benefit obligation recognised in the Standalone Balance Sheet represents the present value of the defined benefit obligation as reduced by the fair value of plan assets, if any. Any resulting net defined benefit asset (i.e., negative defined benefit obligation) is recognised to the extent of the present value of available refunds and reductions in future contributions to the plan.

All expenses comprising current service cost, past service cost (if any), and net interest on the defined benefit liability (or asset) are recognised in the Standalone Statement ofProfit and Loss. Remeasurements of the net defined benefit liability (or asset), comprising actuarial gains and losses and the return on plan assets (excluding amounts included in net interest), are recognised in Standalone Other Comprehensive Income (OCI). Such remeasurements are not reclassified to the Standalone Statement of Profit and Loss in subsequent periods.

Past service cost is recognised immediately to the extent that the benefits are already vested; otherwise, it is recognised on a straight-line basis over the average period until the amended benefits become vested. The defined benefit obligation is determined based on actuarial valuation carried out by an independent actuary, and the related liability is presented as current and non-current in the Standalone Balance Sheet accordingly.

q) Earnings per Share

The Company reports Basic and Diluted Earnings per Share (EPS) in accordance with Ind AS 33, “Earnings per Share”. Basic EPS is computed by dividing the standalone net profit or loss attributable to equity shareholders of the Company for the period by the weighted average number of Equity shares outstanding during the period.

Diluted EPS is computed by dividing the standalone net profit or loss attributable to equity shareholders for the period by the weighted average number of Equity shares outstanding during the period, adjusted for the effects of all dilutive potential equity shares, except where the effect is anti-dilutive.

The weighted average number of Equity shares outstanding during the period is adjusted for events such as bonus issues, bonus elements in rights issues, share splits, and reverse share splits (share consolidations) that change the number of Equity shares outstanding without a corresponding change in resources.

r) Provisions and Contingencies

The Company recognises provisions when there is a present obligation (legal or constructive) as a result of a past event, and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

Where the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, where appropriate, the risks specific to the liability. When discounting is applied, the increase in the provision due to the passage of time is recognised as a finance cost.

A contingent liability is disclosed when there is a possible obligation arising from past events, or a present obligation that is not recognised because it is not probable that an outflow of resources will be required or the amount of the obligation cannot be measured reliably. Where the possibility of an outflow of resources embodying economic benefits is remote, neither a provision nor a disclosure is made.

Contingent assets are possible assets arising from past events, whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company. Contingent assets are not recognised in the standalone financial statements until the realisation of income is virtually certain; however, they are disclosed where an inflow of economic benefits is probable.

The amount recognised as a provision represents the best estimate of the expenditure required to settle the present obligation at the reporting date.

s) Exceptional Items

Exceptional items are disclosed separately in the standalone financial statements where it is necessary to provide a better understanding of the Company’s financial performance. These represent material items of income or expense that are presented separately due to their nature or incidence.

Ordinary items of income or expense which, by virtue of their size, nature, or occurrence, require separate disclosure to improve the understanding of the Company’s performance are also presented as exceptional items in the Standalone Statement of Profit and Loss. (Refer “Note No. 37” of the standalone financial statements for further references).

t) Event after Reporting Date

Adjusting events are those events that provide evidence of conditions that existed at the end of the reporting period. The standalone financial statements are adjusted for such events before they are authorised for issue. Nonadjusting events are those that are indicative of conditions that arose after the end of the reporting period. Such events are not recognised in the standalone financial statements; however, they are disclosed if they are material.

All events occurring after the balance sheet date and up to the date of approval of the standalone financial statements by the Board of Directors on May 23, 2026, have been considered, and appropriately disclosed or adjusted, wherever applicable, in accordance with Indian Accounting Standards.

u) Cash Flow Statements

Cash flows statements are reported using the method set out in the Ind AS - 7, “Cash Flow Statements” and is prepared by using indirect method adjusting the standalone net profit / (losses) before tax excluding exceptional items for the effect of:

i) Changes during the period in inventories and other operating receivables and payables;

ii) Non-cash items such as depreciation, provisions, unrealized foreign currency gain / (losses); and

iii) all other items for which the cash effects are investing and financing cash flows.

The cash flows from operating, investing and financing activities of the Company are segregated. The cash and cash equivalents (including balances with banks), shown in the standalone statement of cash flows exclude items, which are not available for general use as at the date of Standalone Balance Sheet.

v) Cash and Cash Equivalents

Cash and cash equivalents include cash-in-hand, cheques-in-hand, balances with banks, and demand deposits with an original maturity of three months or less, as well as other short-term highly liquid investments. Bank overdrafts, which are repayable on demand and form an integral part of the Company’s cash management are included as a component of cash and cash equivalents for the purpose of the Standalone Statement of Cash Flows.

w) Commitments

Commitments are the future liabilities for contractual expenditure, classified and disclosed as follows:

i) estimated amounts of contracts remaining to be executed on capital account and not provided for;

ii) other non-cancellable commitment, if any, to the extent they are considered material and relevant in the opinion of the Company’s management.

Other commitments related to sales / procurements made in the normal course of business are not disclosed to avoid the excessive details.

1.5 RECENT ACCOUNTING PRONOUNCEMENT

The Ministry of Corporate Affairs (MCA) notifies new standards or amendments to existing standards under the Companies (Indian Accounting Standards) Rules from time to time. For the financial year ended March 31, 2026, MCA has notified the following amendments on August 2025;

a) Ind AS - 1 - Presentation of Financial Statements, applicable w.e.f. April 1, 2025

The amendments relate to the classification of liabilities as current or non-current and non-current liabilities with covenants. In the context of classifying a liability as current or non-current, the amendments clarify that the right to defer settlement of the liability for at least twelve months after the reporting date must exist at the reporting date and should have substantive rights. The amendments also introduce additional guidance for the classification of liabilities subject to covenants. The Company has evaluated the impact of these amendments and concluded that they do not have any impact on its classification of current and non-current liabilities.

b) Ind AS - 7 - Statement of Cash Flows and Ind AS - 107 Financial Instruments - Disclosures, applicable w.e.f. April 1, 2025

The amendments to Ind AS 7 require entities to provide disclosures regarding supplier finance arrangements, including the nature of such arrangements, the carrying amount of related liabilities, and the range of payment due dates. Consequential amendments to Ind AS 107 introduce supplier finance arrangements as a factor that may give rise to concentration of liquidity risk. The Company has evaluated the applicability of these amendments and concluded that they do not have any material impact on its standalone financial statements.

c) Ind AS - 12 - International Tax Reform - Pillar Two Model Rules apply immediately

The amendments provide a temporary mandatory relief from accounting for deferred taxes arising from the implementation of the Pillar Two Rules and require entities to disclose the application of such relief. The said relief is applicable immediately and retrospectively. Based on the Company’s evaluation, the application of the Pillar Two Rules does not have any material financial impact on its standalone financial statements.

1.6 KEY ACCOUNTING ESTIMATES AND JUDGEMENTS

The preparation of the Company’s standalone financial statements in conformity with Ind AS 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, including contingent liabilities, as well as the accompanying disclosures. Uncertainty about these assumptions and estimates could result in outcomes that may require a material adjustment to the carrying amounts of assets or liabilities in future periods. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on a periodic basis. Revisions to accounting estimates are recognised in the period in which they are revised and in any future periods affected. The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, which 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) Income Tax: The Company’s tax jurisdiction is India. Significant judgments are involved in estimating budgeted profits for the purpose of payment of advance tax and in determining income tax provisions, including the amounts expected to be paid or recovered in respect of uncertain tax positions (Refer “Note No. 20”).

b) Property, Plants and Equipment: Property, Plants and Equipment represent a significant portion of the Company’s asset base. The charge for depreciation is determined based on an estimate of the asset’s expected useful life and residual value at the end of its useful life. The useful lives and residual values of assets are determined by the Company’s management at the time of acquisition and are reviewed periodically, including at each financial year end. The useful lives are based on those prescribed under Schedule - II to the Companies Act, 2013, or on technical estimates, considering the nature of the assets, expected usage, estimated residual values, and operating conditions. These estimates are based on historical experience with similar assets as well as expectations of future events that may impact useful life, such as technological or commercial obsolescence arising from changes or improvements in production processes or changes in market demand for the products or services generated by the assets.

c) Fair Value measurements of Financial Instruments: When the fair values of financial assets and financial liabilities recognised in the Standalone Balance Sheet cannot be measured based on quoted prices in active markets, they are determined using valuation techniques, including the discounted cash flow model, which involve various judgments and assumptions. Where possible, inputs to these valuation models are derived from observable market data. Where observable inputs are not available, management is required to exercise judgment in determining fair value. Such judgments include considerations of inputs such as liquidity risk, credit risk, and volatility. Changes in assumptions relating to these factors could affect the reported fair values of financial instruments.

d) Provisions and Contingent Liabilities: The Company’s management estimates provisions where there is a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation. Such provisions are reviewed at the end of each reporting period and are adjusted to reflect the current best estimates. The Company applies significant judgement in assessing contingent liabilities. Contingent liabilities are disclosed where there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company, or where there is a present obligation that is not recognised because it is not probable that an outflow of resources will be required or the amount cannot be reliably measured. Contingent assets are neither recognised nor disclosed in the Standalone financial statements.

e) Impairment of Financial and Non - Financial Assets: The impairment provision for financial assets is based on assumptions regarding the risk of default and expected credit loss rates. The Company applies judgment in making these assumptions and in selecting inputs to the impairment calculations, based on its historical experience, prevailing market conditions, and forward-looking estimates at the end of the reporting period. In respect of non-financial assets, the Company estimates the recoverable amount, which is the higher of an asset’s (or cashgenerating unit’s) fair value less costs of disposal and its value-in-use. In assessing value-in-use, estimated future cash flows are discounted using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs of disposal, recent market transactions are considered. Where such transactions cannot be identified, an appropriate valuation model is used.

0 Recognition of Deferred Tax Assets and Liabilities: Deferred tax assets and liabilities are recognised in respect of deductible temporary differences and unused tax losses or unused tax credits to the extent that it is probable that taxable profits will be available against which they can be utilised. The Company applies judgment in determining the amount of deferred tax that can be recognised, based on the expected timing and level of future taxable profits and anticipated business developments.

g) Amortization of Leasehold Land: The Company’s lease assets primarily consist of lease for industrial land. The lease premium is the fair value of land paid by the Company to the respective authorities at the time of acquisition and there is no liability at the end of the lease term. The lease premium paid by the Company has been amortized over the lease period on systematic basis and the same has been classified under Ind AS - 16, “Property, Plants and Equipment” and therefore, the requirements of both the Ind AS - 116 and Ind AS - 17, as to the period over which, and the manner in which, the right of use assets (under Ind AS - 116) or the assets arising from the finance lease (under Ind AS - 17) amortized as similar.

h) Recoverability of Trade Receivables: Judgment and estimates are involved in assessing the recoverability of overdue trade receivables and determining the requirement for provision against such receivables. The assessment requires management to evaluate various factors, including the creditworthiness of customers, historical collection trends, current market conditions, the amount and timing of expected future cash flows, and any actions that may be taken to mitigate the risk of non-payment. Actual results may differ from these estimates, and such differences may impact the amount of provision recognized in future reporting periods.

i) Defined Benefits Obligations: The costs of providing gratuity and other post-employment benefits are charged to the Standalone Statement of Profit and Loss in accordance with Ind AS 19, “Employee Benefits”, over the period during which the benefits are derived from employees’ services. These obligations are determined based on actuarial valuations and are measured using assumptions selected by the Company’s management. The actuarial valuation involves the use of estimates and assumptions that may differ from actual future outcomes. Significant assumptions include salary escalation rates, discount rates, expected return on plan assets and mortality rates. The related disclosures are provided in “Note No. 44 - Employee Benefits”. Due to the complexities involved in the valuation and the long-term nature of these obligations, the defined benefit obligation is highly sensitive to changes in these assumptions. Accordingly, management reviews and updates these assumptions at each standalone balance sheet date based on current market conditions and actuarial advice.