1. Corporate Information
Mysore Petro Chemicals Limited (“the Company”) is a public limited Company incorporated in India on 09th June 1969, having CIN L24221KA1969PLC001799. The registered office is at D/4, Jyothi Complex, 134/1, Infantry Road, Bengaluru - 560 001. It is engaged in the trading of Phthalic Anhydride, Maleic and other chemicals. The company's equity shares are listed on the BSE and the scrip code is 506734.
The Board of Directors approved the standalone financial statements for the year ended 31st March, 2026 on 20th May, 2026.
1A. Basis of Preparation and Presentation of Standalone Financial Statements
a) 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 Companies (Indian Accounting Standards) Rules, 2015, as amended from time to time. Further, these standalone financial statements have been presented as per the requirements of Division II of Schedule III to the Act (Ind AS compliant Schedule III), as amended from time to time.
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.
b) Basis of Measurement
The standalone financial statements have been prepared and presented under the historical cost convention, on the accrual basis of accounting except for certain financial assets and financial liabilities that are measured at fair values at the end of each reporting period, as stated in accounting policies stated below. The accounting policies have been applied consistently over all the periods presented in these standalone financial statements.
c) Use of material accounting estimates, judgments & assumptions and key sources of estimation uncertainty
The preparation of standalone financial statements in conformity with Ind AS requires management to make estimates, judgments and assumptions. These estimates judgments and assumptions affect the application of accounting policies and the reported amounts of assets and liabilities the disclosures of contingent assets and liabilities, at the date of the standalone financial statements and reported amounts of revenues and expenses during the year.
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below.
The Company evaluates its assumptions and estimates on parameters available when the standalone financial statements are prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes in estimates are reflected in the standalone financial statements in the period in which changes are made and if material their effects are disclosed in the notes to the standalone financial statements.
Judgment, estimates and assumptions are required in particular for
i. Fair Value Measurements of Financial Instruments
When the fair values of financial assets and financial liabilities recorded in the standalone balance sheetcannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques, including the discounted cash flow model, which involves various judgments and assumptions. 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. Changes in judgments and assumptions could affect the reported fair value of financial instruments.
ii. Contingencies
Management judgment is required for estimating the possible outflow of resources, if any, in respect of contingencies/claims/litigations against the Company as it is not possible to predict the outcome of pending matters with accuracy.
iii. Tax expenses and related contingencies
The Company's tax jurisdiction is India. Significant judgements are involved in determining the provision for income taxes, including amount expected to be paid/recovered for uncertain tax positions. Further, significant judgement is exercised to ascertain amount of deferred tax asset (DTA) that could be recognized based on the probability that future taxable profits will be available against which DTA can be utilized and amount of temporary difference in which DTA cannot be recognized on want of probable taxable profits.
iv. Recognition and measurement of defined benefit obligations
The cost of the defined benefit plans such as gratuity and leave encashment are determined using actuarial valuations. 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 year's end. The principal assumptions are the discount and salary growth rate. The discount rate is based upon the market yields available on government bonds at the accounting date with a term that matches that of liabilities. The salary increase rate considers inflation, seniority, promotion and other relevant factors on a longterm basis.
d) Measurement of Fair values
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. A fair value measurement assumes 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. The principal market or the most advantageous market must be accessible to the Company.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.
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A fair value measurement of a non-financial asset considers a market participant's ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.
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.
All assets and liabilities for which fair value is measured or disclosed in the standalone financial statements are categorized within the fair value hierarchy based on the lowest level input that is significant to the fair value measurement as a whole. The fair value hierarchy is described as below:
Level 1 - Unadjusted quoted price in active markets for identical assets and liabilities.
Level 2 - 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 unobservable.
For assets and liabilities that are recognized in the standalone financial statements at fair value on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization at the end of each reporting year.
For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy.
e) Functional and presentation of currency
The standalone financial statements are presented in Indian Rupees (INR) which is the functional currency of the Company and all values are rounded to the nearest lakhs, except where otherwise stated.
1B. Material Accounting Policies
i. Classification of Current and Non-Current
All assets and liabilities have been classified as current or non-current as per the Company's normal operating cycle and other criteria set out in Schedule III Division II of the Act. Based on the nature of products/services and the time between the acquisition of assets for processing/rendering of services and their realization in cash and cash equivalents, the Company has ascertained the operating cycle as twelve months for the purpose of current or non-current classification of assets and liabilities other than those relating to long-term contracts.
In the case of long-term contracts, the time between the acquisition of assets for processing and the realization of the entire proceeds under the contracts in cash or cash equivalent exceeds one year. Accordingly, for the classification of assets and liabilities related to such contracts as current, the duration of each contract is considered as its operating cycle.
ii. Property, plant and equipment
a. Property, plant and equipment are stated at cost of acquisition/construction less accumulated depreciation and accumulated impairment losses, if any. The gross carrying amount of all
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property, plant and equipment is measured using the cost model.
b. Cost of an item of property, plant and equipment includes purchase price including non -refundable taxes and duties, borrowing cost directly attributable to the qualifying asset, any costs directly attributable to bringing the asset to the location and condition necessary for its intended use and the present value of the expected cost for the dismantling/decommissioning of the asset.
c. Parts (major components) of an item of property, plant and equipment having different useful lives are accounted as separate items of property, plant and equipment.
d. Subsequent expenditures related to an item of property, plant and equipment are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance.
e. Property, plant and equipment are eliminated from standalone financial statements either on disposal or when retired from active use. Assets held for disposal are stated at net realizable value. Losses arising in the case of retirement of property, plant and equipment and gains or losses arising from the disposal of property, plant and equipment are recognized in the standalone statement of profit and loss in the year of occurrence.
f. Capital work-in-progress comprises of cost incurred on property, plant and equipment under construction / acquisition that are not yet ready for their intended use at the standalone balance sheet date.
g. Borrowing costs attributable to the acquisition of a qualifying asset are capitalized as part of the cost of the asset till the asset is ready for its intended use and borrowing costs are being incurred. A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use.
h. Depreciation
Depreciation on property, plant and equipment (other than freehold land and capital work in progress) is provided on a pro-rata basis on the straight-line method based on the estimated useful life prescribed under Schedule II to the Act.
Depreciation methods, useful lives and residual values are reviewed periodically, including at the end of each financial year and adjusted prospectively.
In case of assets purchased or derecognized during the year, depreciation on such assets is calculated on a pro-rata basis from the date of such addition or as the case may be, up to the date on which such asset has been derecognized.
iii. Assets held for sale/distribution
Non-current assets are held for disposal if available for immediate disposal in their present condition, a
disposal is highly probable and expected to be completed within one year from the date of classification.
Such assets are measured at the lower of carrying value and fair value less the cost of disposal.
iv. Impairment of Non-Financial assets
The Carrying amounts of assets are reviewed at each standalone balance sheet date for any indication
of impairment based on internal/external factors. Non-financial assets are subject to impairment
tests whenever events or changes in circumstances indicate that their carrying amount may not be
recoverable. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the higher of a) fair value of assets less the cost of disposal and b) its value in use. Value in use is the present value of future cash flows expected to derive from an asset. Where it is not possible to estimate the recoverable amount of an individual asset, the impairment test is carried out on the smallest Company of assets to which it belongs for which there are separately identifiable cash flows and its cash-generating units ('CGUs').
Based on the assessment done at each standalone balance sheetdate, recognized impairment loss is further provided or reversed depending on changes in circumstances. After recognition of impairment loss or reversal of impairment loss as applicable, the depreciation charge for the asset is adjusted in future periods to allocate the asset's revised carrying amount, less its residual value (if any), on a systematic basis over its remaining useful life. If the conditions leading to recognition of impairment losses no longer exist or have decreased, impairment losses recognized are reversed to the extent it does not exceed the carrying amount that would have been determined after considering depreciation had no impairment loss been recognized in earlier years.
v. Investment Property
Investment property comprises buildings that are held for long-term rental yields and/or for capital appreciation. Investment properties are initially recognized at cost. Subsequently, investment property is carried at cost less accumulated depreciation and accumulated impairment losses.
Depreciation on the building is provided over its useful life as specified in Schedule II of the Act. The residual values, useful life and depreciation method of investment property is reviewed and adjusted on a prospective basis as appropriate, at each standalone balance sheetdate. The effects of any revision are included in the standalone statement of profit and loss when the changes arise.
Though the Company measures investment property using cost-based measurement, the fair value of investment property is disclosed in the notes. Fair values are determined based on estimates.
Investment properties are derecognized when either they have been disposed of or when the investment property is permanently withdrawn from use and no future economic benefit is expected from its disposal.
The difference between the net disposal proceeds and the carrying amount of the asset is recognized in the standalone statement of profit and loss in the period of de-recognition.
vi. Financial Instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
(a) Financial Assets
I. Initial measurement
All financial assets are recognized initially at fair value plus, in the case of financial assets not recorded at fair value through standalone statement of profit and loss, transaction costs that are attributable to the acquisition of the financial asset. Financial assets are classified, at initial recognition, as subsequently measured at amortized cost, fair value through other comprehensive income (OCI), and fair value through standalone statement of profit and loss.
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The classification of financial assets at initial recognition depends on the financial asset's contractual cash flow characteristics and the Company's business model for managing them. The business model for managing financial assets refers to how it manages its financial assets in order to generate cash flows. The business model determines whether cash flows will result from collecting contractual cash flows, selling financial assets, or both.
II. Subsequent measurement
For purposes of subsequent measurement, financial assets are classified in below categories:
a. Debt instruments at amortized cost
A 'debt instrument' is measured at the amortized cost if both the following
conditions are met:
a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows and
b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
After initial measurement, such financial assets are subsequently measured at amortized cost using the effective interest rate (EIR) method. Amortized cost is calculated by considering any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included in finance income in the standalone statement of profit and loss. The losses arising from impairment if any, are recognized in the standalone statement of profit and loss.
b. Debt instruments at fair value through other comprehensive income (FVTOCI)
A 'debt instrument” is classified as at the FVTOCI if both of the following criteria are
met:
a) The objective of the business model is achieved both by collecting contractual cash flows and selling the financial assets and
b) The asset's contractual cash flows represent solely payments of principal and interest.
Debt instruments included within the FVTOCI category are measured initially as well as at each reporting date at fair value. Fair value movements are recognized in the other comprehensive income (OCI). However, the Company does not have any debt instrument which meet the criteria for measuring the debt instrument at FVTOCI.
c. Debt Instruments at fair value through profit or loss (FVTPL)
Any debt instrument, which does not meet the criteria for categorization as at
amortized cost or as FVTOCI, are classified as at FVTPL.
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In addition, the Company may elect to designate a debt instrument, which otherwise meets amortized cost or FVTOCI criteria, at FVTPL. However, such an election is allowed only if doing so reduces or eliminates a measurement or recognition inconsistency (referred to as an 'Accounting Mismatch'). The Company makes such elections on an instrument-by-instrument basis and routed through standalone statement of profit and loss.
Financial Assets included within the FVTPL category are measured at fair value with all changes recognized in the standalone statement of profit and loss.
d. Investment in Associate and Subsidiary Company
I nvestment in the associate and Subsidiary company is measured at cost less impairment loss, if any. Where an indication of impairment exists, the carrying amount of the investment is assessed and written down to its recoverable amount. On disposal of investments in Subsidiaries and Associates, the difference between net disposal proceeds and the carrying amounts are recognized in the standalone statement of profit and loss.
e. Equity Investment
All equity investments, except investments in an associate, are measured at FVTPL. The Company may make an irrevocable election on initial recognition to present in OCI any subsequent changes in the fair value. The Company makes such election on an instrument-by-instrument basis.
III. Derecognition
A financial asset (or where applicable, a part of a financial asset or part of a Company of similar financial assets) is primarily derecognized (i.e. removed from the Company's standalone financial statements) when:
a) The rights to receive cash flows from the asset have expired or
b) The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a 'pass-through' arrangement and either (a) the Company has transferred substantially all the risks and rewards of the asset or (b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset nor transferred control of the asset, the Company continues to recognize the transferred asset to the extent of the Company's continuing involvement. In that case, the Company also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained.
Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Company could be required to repay.
IV. Impairment of Financial Assets
Expected credit losses are recognized for all financial assets subsequent to initial recognition other than financial assets in the FVTPL category.
For financial assets other than trade receivables, as per Ind AS 109, the Company recognizes 12-month expected credit losses for all originated or acquired financial assets if at the reporting date, the credit risk of the financial asset has not increased significantly since its initial recognition. The expected credit losses are measured as lifetime expected credit losses if the credit risk on a financial asset increases significantly since its initial recognition. The Company's trade receivables do not contain significant financing components and loss allowance on trade receivables is measured at an amount equal to lifetime expected losses i.e. expected cash shortfall.
The impairment losses and reversals are recognized in the standalone statement of profit and loss.
(b) Financial Liabilities
I. Initial recognition and measurement
The Company recognizes a financial liability in its standalone balance sheetwhen it becomes a party to the contractual provisions of the instrument. All financial liabilities are recognized initially at fair value minus, in the case of financial liabilities not recorded at fair value through standalone statement of profit and loss (FVTPL), transaction costs that are attributable to the acquisition of the financial liability.
II. Subsequent measurement
a. Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through standalone statement of profit and loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through standalone statement of profit and loss.
Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. Separated embedded derivatives are also classified as held for trading unless they are designated as effective hedging instruments.
Gains or losses on liabilities held for trading are recognized in the standalone statement of profit and loss.
Financial liabilities designated upon initial recognition at fair value through standalone statement of profit and loss are designated as such at the initial date of recognition, and only if the criteria in Ind AS 109 are satisfied. For liabilities designated as FVTPL, fair value gains/ losses attributable to changes in own credit risk are recognized in OCI. These gains/ losses are not subsequently transferred to standalone statement of profit and loss. However, the Company may transfer the cumulative gain or loss within equity. All other changes in fair value of such liability are recognized in the standalone statement of profit and loss. The Company has not designated any financial liability as at fair value through standalone statement of profit and loss.
b. Financial liabilities at amortized cost
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using the Effective Interest Rate (EIR) method. Gains and losses are recognized in standalone statement of profit and loss when the liabilities are derecognized as well as through the EIR amortization process.
Amortized cost is calculated by considering any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance costs in the standalone statement of profit and loss.
III. Derecognition
A financial liability is derecognized when the obligation under the liability is discharged or canceled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the standalone statement of profit and loss.
(c) Compound Financial Instruments
The liability component of a compound financial instrument is recognized initially at fair value of a similar liability that does not have an equity component. The equity component is recognized initially as the difference between the fair value of the compound financial instrument as a whole and the fair value of the liability component. Any directly attributable transaction costs are allocated to the liability and the equity components, if material, in proportion to their initial carrying amounts.
Subsequent to the initial recognition, the liability component of a compound financial instrument is measured at amortized cost using the effective interest rate method. The equity component of a compound financial instrument is not re-measured subsequent to initial recognition except on conversion or expiry.
(d) Offsetting of Financial Instruments
Financial assets and financial liabilities are offset and the net amount is reported in the standalone balance sheetif there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously.
(e) Re-classification
The Company determines the classification of financial assets and liabilities on initial recognition.
After initial recognition, no re-classification is made for financial assets which are equity instruments and financial liabilities. For financial assets which are debt instruments, a reclassification is made only if there is a change in the business model for managing those
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assets. Changes to the business model are expected to be infrequent. The management determines the change in the business model as a result of external or internal changes which are significant to the Company's operations. A change in the business model occurs when the Company either begins or ceases to perform an activity that is significant to its operations.
If the Company reclassifies financial assets, it applies the reclassification prospectively from the reclassification date which is the first day of the immediately next reporting period following the change in the business model.
The Company does not restate any previously recognized gains, losses (including impairment gains or losses) or interest.
vii. Inventories
Inventories (stock in trade) are valued at a lower of cost and net realizable value. Cost is computed on a weighted average basis. The net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and estimated costs necessary to make the sale.
viii. Income Taxes
Income tax expense for the year comprises of current tax and deferred tax. It is recognized in the standalone statement of profit and loss except to an item which is recognized directly in equity or in other comprehensive income.
(a) Current tax
Current tax is the expected tax payable/receivable on the taxable income/loss for the year using applicable tax rates at the standalone balance sheetdate and any adjustment to taxes in respect of previous years. In respect of amounts adjusted outside standalone statement of profit and loss (i.e. in other comprehensive income or equity), the corresponding tax effect, if any, is also adjusted outside standalone statement of profit and loss.
Provision for current tax is made as per the provisions of Income Tax Act, 1961.
(b) Deferred tax
Deferred tax is recognized using the standalone balance sheetapproach. Deferred tax liabilities are recognized for all taxable temporary differences, and deferred tax assets are recognized for all deductible temporary differences, carry forward tax losses and allowances to the extent that it is probable that future taxable profits will be available against which those deductible temporary differences, carry forward tax losses and allowances can be utilized.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date. Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxation authority.
Deferred tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which such deferred tax assets can be utilized. In situations where the Company has unused tax losses and unused tax credits, deferred tax assets are recognized only if it is probable that they can be utilized against future taxable profits. Deferred tax assets
are reviewed for the appropriateness of their respective carrying amounts at each standalone balance sheetdate.
At each reporting date, the Company re-assesses unrecognized deferred tax assets. It recognizes previously unrecognized deferred tax assets to the extent that it has become probable that future taxable profits allow deferred tax assets to be recovered.
ix. Cash and cash equivalents
Cash and cash equivalents include cash in hand, bank balances and any deposits with original maturities of three months or less (that are readily convertible to known amounts of Cash and cash equivalents and subject to an insignificant risk of changes in value). However, for the purpose of the Standalone Statement of Cash Flows, in addition to the above items, any bank overdrafts/cash credits that are an integral part of the Company's cash management, are also included as a component of Cash and cash equivalents.
x. Provisions, Contingent Liabilities and Contingent Assets
(a) Provisions
A provision is recognized when the Company has a present obligation (legal or constructive) as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. If the effect of time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risk specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost. These are reviewed at each standalone balance sheetdate and adjusted to reflect the current best estimates.
(b) Contingency Liability
A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.
(c) Contingent Assets
The Company does not recognize a contingent asset but discloses its existence in the standalone financial statements if the inflow of economic benefits is probable. However, when the realization of income is virtually certain, then the related asset is no longer a contingent asset, but it is recognized as an asset.
xi. Revenue recognition
The Company recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. A 5-step approach is used to recognize revenue as below:
Step 1: Identify the contract(s) with a customer
Step 2: Identify the performance obligation in the contract
Step 3: Determine the transaction price
, Step 4: Allocate the transaction price to the performance obligations in the contract
Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation.
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and it can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable.
Sale of Goods
Revenue from the sale of goods is recognized when the significant risks and rewards of ownership of the goods have passed to the buyer, which generally coincide with delivery of the goods. Revenue from the sale of goods is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are net of returns and allowances, trade discounts and volume rebates, goods and service tax (GST) and amounts collected on behalf of third parties.
Interest Income
Interest income is recognized on a time-proportion basis considering the amount outstanding and the applicable interest rate. Interest income is included and classified under the head “other income” in the standalone statement of profit and loss.
Dividend Income
Dividend income on investments is recognized when the right to receive dividends is established. Insurance Claims
Insurance claim receivable is accounted for when the amount of the claim is finalized by the insurance company.
xii. Borrowing Costs
Borrowing costs attributable to the acquisition of a qualifying asset are capitalized as part of the cost of the asset till the asset is ready for its intended use and borrowing costs are being incurred. A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use. All other borrowing costs are recognized as an expense in the period in which they are incurred. Borrowing cost includes interest expense incurred in connection with borrowing of funds and exchange difference arising from foreign currency borrowings to the extent they are regarded as an adjustment to the Interest cost.
xiii. Employee Benefit Expenses
i. Short-term employee benefit
All employee benefits falling due wholly within twelve months of rendering the service are classified as short-term employee benefits and they are recognized as an expense at the undiscounted amount in the standalone statement of profit and loss in the period in which the employee renders the related service.
ii. Post-employment benefits
a) Defined Contribution Plan
The defined contribution plan is a post-employment benefit plan under which the Company contributes a fixed contribution to a government-administered fund and will have no obligation to pay further contributions. The Company's contribution to defined
contribution plans is recognized in the standalone statement of profit and loss in the period in which the employee renders the related service.
b) Defined Benefit Plan
The liability recognized in the standalone balance sheetin respect of the defined benefit gratuity plan is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of government bonds and that have terms to maturity approximating to the terms of the related gratuity.
Remeasurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability and the return on plan assets (excluding amounts included in net interest on the net defined benefit liability), are recognized immediately in the standalone balance sheetwith a corresponding debit or credit to retained earnings through OCI in the period in which they occur. Remeasurements are not reclassified to standalone statement of profit and loss in subsequent periods.
Net interest is calculated by applying the discount rate to the net defined benefit liability or asset. The Company recognizes the following changes in the net defined benefit obligation as an expense in the standalone statement of profit and loss:
• Service costs comprising current service costs, past-service costs, gains and losses on curtailments and non-routine settlements; and
• Net interest expense or income
c) Other long-term benefits
The Company has other long-term benefits in the form of leave benefits. The present value of the other long term employee benefits is determined based on actuarial valuation using the projected unit credit method. The rate used to discount defined benefit obligation is determined by reference to market yields at the standalone balance sheetdate on Indian Government Bonds for the estimated term of obligations.
Actuarial gains or losses arising on account of experience adjustment and the effect of changes in actuarial assumptions are recognized immediately in the standalone statement of profit and loss as income or expense.
Gains or losses on the curtailment or settlement of other long-term benefits are recognized when the curtailment or settlement occurs.
xiv. Leases
The Company evaluates each contract or arrangement, and whether it qualifies as a lease as defined under Ind AS 116.
Company as a Lessee
A lease is classified at the inception date as a finance lease or an operating lease.
The Company assesses, whether the contract is, or contains, a lease at the inception of the contract or upon the modification of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
The Company at the commencement of the lease contract recognizes a Right-of-Use (RoU) asset at cost and a corresponding lease liability, except for leases with a term of twelve months or less (shortterm leases) and leases for which the underlying asset is of low value (low-value leases). For these short-term and low-value leases, the Company recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease.
The cost of the right-of-use assets comprises the amount of the initial measurement of the lease liability, adjusted for any lease payments made at or prior to the commencement date of the lease, any initial direct costs incurred by the Company, any lease incentives received and expected costs for obligations to dismantle and remove right-of-use assets when they are no longer used.
Subsequently, the right-of-use assets is measured at cost less any accumulated depreciation and accumulated impairment losses, if any. The right-of-use assets are depreciated on a straight-line basis from the commencement date of the lease over the shorter of end of the lease term or useful life of the right-of-use asset.
Right-of-use assets are assessed for impairment whenever there is an indication that the standalone balance sheetcarrying amount may not be recoverable using cash flow projections for the useful life.
For lease liabilities at the commencement date, the Company measures the lease liability at the present value of the future lease payments as from the commencement date of the lease to the end of the lease term. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, the Company's incremental borrowing rate for the asset subject to the lease in the respective markets.
Subsequently, the Company measures the lease liability by adjusting carrying amount to reflect interest on the lease liability and lease payments made.
The Company re-measures the lease liability (and makes a corresponding adjustment to the related right-of-use asset) whenever there is a change to the lease terms or expected payments under the lease, or a modification that is not accounted for as a separate lease.
The portion of the lease payments attributable to the repayment of lease liabilities is recognized in cash flows used in financing activities. Also, the portion attributable to the payment of interest is included in cash flows from financing activities. Further, Short-term lease payments, payments for leases for which the underlying asset is of low-value and variable lease payments not included in the measurement of the lease liability is also included in cash flows from operating activities.
Company as a Lessor
In arrangements where the Company is the lessor, it determines at lease inception whether the lease is a finance lease or an operating lease. Leases that transfer substantially all of the risk and rewards incidental to ownership of the underlying asset to the counterparty (the lessee) are accounted for as finance leases. Leases that do not transfer substantially all of the risks and rewards of ownership are accounted for as operating leases. Lease payments received under operating leases are recognized as income in the standalone statement of profit and loss on a straight-line basis over the lease term or another systematic basis. The Company applies another systematic basis if that basis is more representative of the pattern in which the benefit from the use of the underlying asset is diminished.
xv. Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker.
xvi. Foreign Currencies
The standalone financial statements are presented in INR, the functional currency of the Company. Items included in the standalone financial statements of the Company are recorded using the currency of the primary economic environment in which the Company operates (the 'functional currency').
Foreign currency transactions are translated into functional currency using exchange rates at the date of the transaction. Foreign exchange gains and losses from settlement of these transactions and from translation of monetary assets and liabilities at the reporting date exchange rates are recognized in the standalone statement of profit and loss.
xvii. Earnings per share CEPS')
Basic earnings per share are calculated by dividing the net profit or loss (after tax) for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. The weighted average number of equity shares outstanding during the period and all periods presented is adjusted for events of bonus issue and share split.
For the purpose of calculating diluted earnings per share, the net profit or loss (after tax) for the year attributable to equity shareholders and the weighted average number of equity shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.
xviii. Cash Flow Statement
Cash Flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.
1C. 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. In May 2025, MCA notified amendments to Ind AS 21 - The Effects of Changes in Foreign Exchange Rates, applicable w.e.f. 01st April, 2025. The Company has reviewed the amendment and based on its evaluation, has determined that it does not have any significant impact on its standalone financial statements. In August 2025, MCA notified the following amendments to:
1. Ind AS 1, Presentation of Financial Statements, applicable w.e.f. 01st April, 2025 - The amendment relates 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, it removes the requirement of the existence of a right to defer settlement for at least 12 months after the reporting date and instead requires that the said right should exist on the reporting date and have substance. The amendment also introduces guidance on the classification of liabilities with covenants. The Company has no impact of these amendments on its classification criteria of current and non-current liabilities.
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2. Ind AS 7, Statement of Cash Flows and Ind AS 107, Financial Instruments: Disclosures, applicable w.e.f. 01st April, 2025 - The amendment in Ind AS 7 requires informing users of standalone financial statements of the existence of supplier finance arrangements and explaining the nature of the arrangements, the carrying amount of liabilities and the range of payment due dates. Ind AS 107 has been amended to add supplier finance arrangements as a factor that may cause concentration of liquidity risk. The Company has reviewed the amendment and, based on its evaluation, has determined that it does not have any significant impact on its standalone financial statements.
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