31. SIGNIFICANT ACCOUNTING POLICIES

31.1 Statement of Compliance

Financial Statements have been prepared In accordance wfth the accounting principles generally accepted In
India Including Indian Accounting Standards (Ind AS) prescribee under the section 133 of the tompanles Act,
2013 read with rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and the Companies
(Accounting Standards) Amendment Rules. 2016. The aforesaid financial statements have been approved by the
Beard of Directors In the meeting held on 29th May 2024, '

31.2 Basis of Preparation of Financial Statements

These tmancial statements have been prepared in accordance with the accounting policies, set cut below end
were consistently applied to ell periods presented unless otherwise stated,

The financial statements havo been prepared on a going concern basis using historical cost convention and or an
accrual method of accounting. *

Company's financial slate merits are presented In Indian Rupees 0* which is also Its functional currency.

31.3 Property, Plant & Equipment

Property, plant and equipment are stated at coat, net of recoverable taxes, trade discount and rebates less
accumulated depreciation and impairment tosses, If any. Such cost includes purchase price, borrowing cost and
any cost directly attributable to bringing the assets to its working condition tor its intended use, net charges on
foreign exchange contracts and adjustments arising from exchange rate variations attributable to the assets.

Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate,
only when N Is probable that future economic benefits associated with the item will flow to the entity end the cost
can be measured reliably.

Expenses incurred negating to project, net of income earned during the project development stage prior to Its
intended use, ere considered as pre - operative expenses and disclosed under Capital Work - in - Progress

Depreciation on properly, plant and equipment is provided using straight line method based on useful life of the
assets as prescribed to Schedule fl to the Companies Act 2013

31.4 Inventory

inventories are stated at the lower of cost and net realizable value except in case of waste and,scrape which are
valued at ret realizable value.

Cost of raw material includes cost of purchase and other costs Incurred In bringing the Inventories to their present
location and condition. Cost of finished goods and work in progress include cost of direct materials and labour and
a proportion of manufacturing overheads based on the normal operating capacity but excluding borrowing costs.

31.5 Revenue Recognition

Revenue is measured at the fair value of the consideration received or receivebfe. The Company recognizes
revenues on saie of products, net of discounts, returns, sales taxes and duties when the products ere delivered to
customer or when delivered to a carrier ter export sale, when significant risks and rewards of ownership pass to
the customer, Sale of products is presented gross of manufacturing taxes Eke excise duty wherever applicable,
Revenue from sale of waste and scrap are included in revenue.

Interest income from a financial asset is recognised when it Is probable that the economic benefits will flow to the
Company and the amount of income can be measured reliably. Interest income is accrued on a time basis, using
effective interest rale.

3l.fl Employee Benefit '

Contributions to Provident Pund. a defined contribution plan are made in accordance with the statute, and are
recognized as an expanse when employees have rendered service entitling them to the contribution.

Company's contribution to state defined contribution plan namely, Employee State Insurance are made in
accordance with the statute, and are recognized as an expenses when emplqyees have rendered services
entitling them to the contribution. ,

31.7 Borrowing Cost

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part
of the cost of such assets. A qualifying asset Is one that necessary takes substantial period of time to get ready
ter its intended use. All other borrowing costs are charged to Profit and Lose account.

31.6 Foreign Currency Transaction

The functional currency of the Company Is determined on the basis of the primary economic environment In which
It operates. The functional currency of the Company is Indian Rupee 0>

The transactions in currencies other than tha entity’s functional currency (foreign currencies) are recognised at the
rates of exchange prevailing at the dates of the transactions, At the end of each reporting period, monetary items
denominated In foreign currencies are retranslated at the rates prevailing at that date. Non-monetery Items carried
at fair value that are denominated Jn foreign currencies are retranslated at the rates prevailing at the date when
the fair value was determined. Non-monetary Items that are measured tn terms of historical ccst tn a foreign
currency ana not retranslated.

Exchange differences on monetary Items are recognised in Statement of Profit and Loss in the period to which
thou arise.

31.9 Financial Instruments

31.9.1 Financial Assets

31.9.1.1 initial recognition and measurement ,

All financial assets are Initially recognized at fair value, Transaction costs that are directly attributable to the
acquisition of financial assets, which are not at fair value are adjusted through profit or loss on Initial recognition.
Purchase and sale of financial assets are recognised using trade dale accounting,

31.9.1.2 Subsequent measurement

31.9.1.2.1 Financial assets carried at amortised cost ,

A financial asset la measured at amortised cost If It Is held within a business model whose objective Is to hold the
asset in drder to collect contractual cash ftows and the contractual terms of the financial asset give rise on
specified dates to cash flows that are solely payments of principal and interest on the principal amount
outstanding.

315.1 -2JI Financial assets at fair value through other comprehensive Income (FVTOCI)

A financial asset is measured at FVTOCI if it is held within a business mode] whose objective Is achieved by both
collecting contractual cash flows and setting financial assets and the contractual terms of the financial asset give
rise on specified dates to cash flows thet are solely payments of principal and Interest on the principal amount
outstanding.

31-9.1.2.111 Financial astots at fair value through profit or loss (FVTPL)

A financial asset which Is not classified in any of the above categories are measured at FVTPL

315.13 Impairment of Financial assets '

The Company assesses on a forward looking basis the expected credit losses associated with its assets carried
at amdrlfeed cost and FV0CI debt instruments. The impairment methodology applied depends on whether there
has been a significant Increase in credit risk.

31-9.2 Financial Liabilities

31.9.2.1 initial recognition and measurement

All financial liabilities, are recognized at fair value and In case of toons, net of directly attributable cost Fees of
recurring nature are directly recognised In the Statement of Profit end Loss as finance cost,

31.9.2.2 Subsequent measurement

Financial liabilities are carried at amortized cost using the effective Interest method. For trade and other payables
maturing wfthln one year from the baiance sheet date, the carrying amounts approximate fair value duo to the
short maturity of these instorments,

31-9.3 Derecognition of Financial Instruments

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

31,10 Taxation

income tax expense represents the sum of the tax currently payable and deferred tax,

31*10,1 Current Tax

Current tax Is the amount of tax payable based on the taxable profit for tha year as determined In accordance with
the provisions of section 115BAA ofthe Income Tax Act, 1961* "

31.10*2 Differed Tax

Deferred tax Is recognised on temporary differences between the carrying amounts of assets end liabilities In the
financial statements and the corresponding tax bases used in the computation of taxable profit

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to tha
extent that it ts no longer probable that 6officiant taxable profits wil bs available to allow all or pert of the asset to
be recovered.

Deferred tax assets and liabilities ere measured at the tax rates that are expected to apply in tha period in which
the liability Is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or
substantively enacted by the end of the reporting period*

Deferred tax assets and deferred tax HatriNlfee are offset If a legally enforceable right exists to sat oft current tax
assets against current tax liabilities end the deferred taxes relate to the same taxable entity and the same taxation
authority*,