2. Significant accounting policies
2.1. Basis of Preparation of Financial Statements
a) Statement of compliance
The financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS)
as per the Companies (Indian Accounting Standards) Rules, 2015 notified under Section 133 of
Companies Act, 2013, (the ‘Act’) and other relevant provisions of the Act.
These financial statements have been prepared for the Company as a going concern on the basis of
relevant Ind AS that are effective at the Company’s annual reporting date, March 31, 2026. These
financial statements were authorised for issuance by the Company’s Board of Directors on12th August
2026.
b) Basis of measurement
The financial statements have been prepared on historical cost convention and on accrual basis, except
for the following items in the balance sheet:
i. Certain financial assets and liabilities measured either at fair value or at amortised cost depending
on the classification.
ii. Defined employee benefit liabilities are recognised at the present value of defined benefit obligation
adjusted for fair value of plan assets.
c) Current and non-current classification
All assets and liabilities have been classified as current or non-current as per the Company’s operating
cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of
services and the time between the rendering of service and their realization in cash and cash equivalents,
the Company has ascertained its operating cycle as twelve months for the purpose of current and non¬
current classification of assets and liabilities.
The company presents assets and liabilities in the balance sheet based on current/ non-current
classification.
An asset is classified as current when it is:
• Expected to be realised or intended to be sold or consumed in normal operating cycle
• Held primarily for the purpose of trading
• Expected to be realised within twelve months after the reporting period, or
For the year ended March 31, 2026
(All amounts are in Rs. Lakhs, except share data and per share data, unless otherwise stated)
• Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at
least twelve months after the reporting period.
A liability is classified as current when:
• It is expected to be settled in normal operating cycle
• It is held primarily for the purpose of trading
• It is due to be settled within twelve months after the reporting period, or
• There is no unconditional right to defer the settlement of the liability for at least twelve months
after the reporting period.
Current assets/liabilities include the current portion of non-current assets/liabilities respectively. All
other assets/liabilities including deferred tax assets and liabilities are classified as non-current.
d) Use of estimates
The preparation of financial statements in conformity with Ind AS requires the management of the
company to make judgments, estimates and assumptions to be made that affect the reported amounts of
assets and liabilities on the date of financial statements, disclosure of contingent liabilities as at the date
of the financial statements, and the reported amounts of income and expenses during the reported period.
Accounting estimates could change from period to period. Actual results could differ from those
estimates. Appropriate changes in estimates are made as management becomes aware of changes in
circumstances surrounding the estimates. Changes in estimates are reflected in the standalone Ind AS
financial statements in the period in which such changes are made and in any future periods affected.
e) Fair value measurement
The Company’s accounting policies and disclosures require the measurement of fair values, for certain
financial and non-financial assets and liabilities based on their classification.
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.
In estimating the fair value of an asset or liability, the company takes into account the characteristics of
the asset or liability if market participants would take those characteristics into account when pricing
the asset or liability at the measurement date.
Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the
valuation techniques as follows:
• Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
• Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or
liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
• Level 3: inputs for the asset or liability that are not based on observable market data (unobservable
inputs).
When measuring the fair value of an asset or a liability, the Company uses observable market data as far
as possible. If the inputs used to measure the fair value of an asset or a liability fall into different levels
of the fair value hierarchy, then the fair value measurement is categorized in its entirety in the same level
of the fair value hierarchy as the lowest level input that is significant to the entire measurement.
For the year ended March 31, 2026
(All amounts are in Rs. Lakhs, except share data and per share data, unless otherwise stated)
The Company recognises transfers between levels of the fair value hierarchy at the end of the reporting
period during which the change has occurred.
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 as explained above.
2.2. Property, plant and equipment
Recognition and measurement
Property, plant and equipment are measured at cost less accumulated depreciation and impairment
losses, if any. Cost comprises of purchase price, freight, non-refundable taxes and duties, specified
foreign exchange gains or losses and any other cost attributable to bring the asset to its working condition
for its intended use.
Any gain or loss on disposal of an item of property, plant and equipment is recognised in statement of
profit and loss.
Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as
appropriate, only when it is probable that future economic benefits associated with the item will flow to
the Company and the cost of the item can be measured reliably. All other repairs and maintenance are
charged to Statement of Profit and Loss during the year in which they are incurred.
Advances paid towards the acquisition of property, plant and equipment outstanding at each balance
sheet date is classified as capital advances and the cost of assets not ready to use before such date are
disclosed under ‘Capital work-in-progress’ and hence not depreciated.
Depreciation method, estimated useful lives and residual values
The classification of Plant and equipment into continuous and non-continuous process is done as per
technical certification and depreciation thereon is provided accordingly.
Depreciation on property, plant and equipment is provided on the Straight-Line Method (SLM) method,
computed on the basis of useful lives as estimated by management which coincides with rates prescribed
in Schedule II to the Companies Act,2013.
The residual values, useful lives and method of depreciation are reviewed at each financial year end and
adjusted prospectively, if appropriate.
Depreciation on additions/(disposals) is provided on a pro-rata basis i.e. from / (up to) the date on which
asset is ready for use / (disposed of).
De-recognition
An item of property, plant and equipment and any significant part initially recognized is derecognized
upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or
loss arising on de-recognition of the asset (calculated as the difference between the net disposal proceeds
and the carrying amount of the asset) is recognised in statement of profit and loss when the asset is
derecognized.
Internally generated
Expenditure on research activities is recognised in statement of profit and loss as incurred.
Development expenditure is capitalised as part of the cost of the resulting intangible asset only if the
expenditure can be measured reliably, the product or process is technically and commercially feasible,
future economic benefits are probable, and the Company intends to and has sufficient resources to
complete development and to use or sell the asset. Otherwise, it is recognised in statement of profit and
loss as incurred. Subsequent to the initial recognition, the asset is measured at cost less accumulated
amortisation and any accumulated impairment losses.
Others
Other intangible assets are initially measured at cost. Subsequently, such intangible assets are measured
at cost less accumulated amortisation and any accumulated impairment losses.
Subsequent expenditure
Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in
the specific asset to which it relates.
Amortisation
Intangible assets with finite lives are amortised over the useful economic life and assessed for
impairment whenever there is an indication that the intangible asset may be impaired. The amortisation
period and the amortisation method for an intangible asset with a finite useful life are reviewed at least
at the end of each reporting period, with the effect of any change in the estimate being accounted for on
a prospective basis. Changes in the expected useful life or the expected pattern of consumption of future
economic benefits embodied in the asset are considered to modify the amortisation period or method, as
appropriate, and are treated as changes in accounting estimates. The amortisation expense on intangible
assets with finite lives is recognised in the statement of profit and loss unless such expenditure forms
part of carrying value of another asset.
2.4. ImpairmentImpairment of financial assets
In accordance with Ind AS 109 ‘Financial Instruments’, the Company applies expected credit loss
(“ECL”) model for measurement and recognition of impairment loss on financial assets measured at
amortised cost.
Loss allowance for trade receivables with no significant financing component is measured at an amount
equal to lifetime expected credit losses. For all other financial assets, ECL are measured at an amount
equal to the 12-month ECL, unless there has been a significant increase in credit risk from initial
recognition in which case those are measured at lifetime ECL.
Loss allowance for financial assets measured at amortised cost are deducted from gross carrying amount
of the assets. The amount of ECL (or reversal) that is required to adjust the loss allowance at the reporting
date is recognised as an impairment gain or loss in the Statement of Profit and Loss.
At each reporting date, the Company assesses whether there is any indication that an asset may be
impaired, based on internal or external factors. If any such indication exists, the Company estimates the
recoverable amount of the asset or cash generating unit. If such recoverable amount of the asset or cash
generating unit is less than it’s carrying amount, the carrying amount is reduced to its recoverable
amount. The reduction is treated as an impairment loss and is recognised in the Statement of Profit and
Loss. If, at the reporting date there is an indication that a previously assessed impairment loss no longer
exists, the recoverable amount is reassessed, and the asset is reflected at the recoverable amount.
Impairment losses previously recognised are accordingly reversed in the Statement of Profit and Loss.
2.5. Inventories
Inventories are measured at the lower of cost and net realisable value. The cost of inventories is based
on the first-in first-out formula, and includes expenditure incurred in acquiring the inventories,
production or conversion costs and other costs incurred in bringing them to their present location and
condition.
Net realisable value is the estimated selling price in the ordinary course of business, less the estimated
costs of completion and selling expenses. The net realisable value of work-in-progress is determined
with reference to the selling prices of related finished products.
2.6. Leases (as a lessee)
The company assesses whether a contract contains a lease, at the inception of contract. A contract is, or
contains, a lease if the contract conveys the right to control the use of an identified asset for a period of
time in exchange for consideration. To assesses whether a contract conveys the right to control use of
an identified asset, the company assesses whether:
• The contract involves use of an identified asset;
• The company has substantially all the economic benefits from the use of the asset through the
period of lease; and
• The company has the right to direct the use of an asset.
At the date of commencement of lease, the company recognises a Right-of-use assets (“ROU”) and a
corresponding liability for all lease arrangements in which it is a lessee, except for leases with the term
of twelve months or less (short term leases) and low value leases. For short term and low value leases,
the company recognises the lease payment as an operating expense on straight line basis over the term
of lease.
The right-of-use assets are initially recognised at cost, which comprises the initial amount of the lease
liability adjusted for any lease payments made at or prior to the commencement date of the lease plus
any initial direct costs less any lease incentives. They are subsequently measured at cost less
accumulated depreciation and impairment losses. Right-of-use assets are depreciated from the
commencement date on a straight-line basis over the lease term and useful life of the underlying asset.
The lease liability is initially measured at amortised cost at the present value of the future lease
payments. The lease liability is initially measured at amortised cost at the present value of the future
lease payments. The lease payments are discounted using the interest rate explicit in the lease or, if not
readily determinable, using the incremental borrowing rates in the country of domicile of these leases.
Lease liabilities are remeasured with a corresponding adjustment to the related right-of- use assets if the
company changes its assessment if whether it will exercise an extension or a termination of option. Lease
2.7. Financial instruments
Recognition and initial measurement
Trade receivables are initially recognised when they are originated. All other financial assets and
financial liabilities are initially recognised when the Company becomes a party to the contractual
provisions of the instrument. A financial asset or financial liability is initially measured at fair value and,
for an item not at fair value through profit and loss (FVTPL), fair value plus transaction costs that are
directly attributable to its acquisition or issue.
Classification and subsequent measurement
Financial assets
On initial recognition, a financial asset is classified as measured at
• amortised cost;
• Fair Value through Other Comprehensive Income (FVOCI) - equity investment; or
• Fair Value through Profit or Loss (FVTPL).
Financial assets are not reclassified subsequent to their initial recognition, except if and in the period the
Company changes its business model for managing financial assets.
A financial asset is measured at amortised cost if it meets both of the following conditions and is not
designated as at FVTPL:
• the asset is held within a business model whose objective is to hold assets to collect contractual
cash flows; and
• the contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.
• A debt investment is measured at FVOCI if it meets both of the following conditions and is not
designated as at FVTPL:
• the asset is held within a business model whose objective is achieved by both collecting contractual
cash flows and selling financial assets; and
• the contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.
On initial recognition of an equity investment that is not held for trading, the Company may irrevocably
elect to present subsequent changes in the investment’s fair value in OCI (designated as FVOCI - equity
investment). This election is made on an investment- by- investment basis.
If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on
the instrument, including foreign exchange gain or loss and excluding dividends, are recognised in the
OCI. There is no recycling of the amounts from OCI to profit or loss, even on sale of investment.
However, the Company may transfer the cumulative gain or loss within equity. Equity instruments
included within the FVTPL category are measured at fair value with all changes recognised in the
standalone statement of profit and loss.
Investments in subsidiaries
Equity investments in subsidiaries are carried at cost less accumulated impairment losses, if any. Where
an indication of impairment exists, the carrying amount of the investment is assessed and written down
immediately to its recoverable amount. On disposal of investments in subsidiaries, the difference
between net disposal proceeds and the carrying amounts are recognised in the Statement of Profit and
Loss.
Financial assets: Subsequent measurement and gains and losses
Financial assets at FVTPL:
These assets are subsequently measured at fair value. Net gains and losses, including any interest or
dividend income, are recognised in statement of profit and loss. However, see Note 28 for derivatives
designated as hedging instruments
Financial assets at amortised cost:
These assets are subsequently measured at amortised cost using the effective interest method. The
amortised cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and
impairment are recognised in statement of profit and loss. Any gain or loss on derecognition is
recognised in statement of profit and loss.
Equity investments at FVOCI:
These assets are subsequently measured at fair value. Dividends are recognised as income in statement
of profit and loss unless the dividend clearly represents a recovery of part of the cost of the investment.
Other net gains and losses are recognised in OCI and are not reclassified to statement of profit and loss.
Financial liabilities: Classification, subsequent measurement and gains and losses
Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is
classified as at FVTPL if it is classified as held- for- trading, or it is a derivative or it is designated as
such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and
losses, including any interest expense, are recognised in statement of profit and loss. Other financial
liabilities are subsequently measured at amortised cost using the effective interest method. Interest
expense and foreign exchange gains and losses are recognised in statement of profit and loss. Any gain
or loss on derecognition is also recognised in statement of profit and loss.
Derecognition
Financial assets
The Company derecognises a financial asset when the contractual rights to the cash flows from the
financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in
which substantially all of the risks and rewards of ownership of the financial asset are transferred or in
which the Company neither transfers nor retains substantially all of the risks and rewards of ownership
and does not retain control of the financial 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 recognise the transferred asset to
the extent of the Company’s continuing involvement. In that case, the Company also recognises 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.
Financial liabilities
The Company derecognises a financial liability when its contractual obligations are discharged or
cancelled or expire. The Company also derecognises a financial liability when its terms are modified
and the cash flows under the modified terms are substantially different. In this case, a new financial
liability based on the modified terms is recognised at fair value. The difference between the carrying
amount of the financial liability extinguished and the new financial liability with modified terms is
recognised in statement of profit and loss.
Offsetting
Financial assets and financial liabilities are offset, and the net amount presented in the balance sheet
when, and only when, the Company currently has a legally enforceable right to set off the amounts and
it intends either to settle them on a net basis or to realise the asset and settle the liability simultaneously.
2.8. Business combination
The Company accounts for its business combinations under acquisition method of accounting, where
applicable. Acquisition related costs are recognised in the statement of profit and loss as incurred. The
acquiree’s identifiable assets, liabilities and contingent liabilities that meet the condition for recognition
are recognised at their fair values at the acquisition date.
Purchase consideration paid in excess of the fair value of net assets acquired is recognised as goodwill.
Where the fair value of identifiable assets and liabilities exceed the cost of acquisition, after reassessing
the fair values of the net assets and contingent liabilities, the excess is recognised as capital reserve.
Transaction costs incurred in connection with a business combination are expensed as incurred.
Business combinations arising from transfers of interests in entities that are under common control are
accounted at historical cost. The difference between any consideration given and the aggregate historical
carrying amounts of assets and liabilities of the acquired entity is recorded in shareholders’ equity.
2.9. Employee benefits
Short-term employee benefits
All employee benefits falling due within twelve months from the end of the period in which the
employees render the related services are classified as short-term employee benefits, which include
benefits like salaries, wages, short term compensated absences, performance incentives, etc. and are
recognised as expenses in the period in which the employee renders the related service and measured
accordingly.
The liability or asset recognized in the Balance Sheet in respect of defined benefit plans 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 actuaries using the projected unit credit method.
The present value of the defined benefit obligation is determined by discounting the estimated future
cash outflows by reference to market yields at the end of the reporting period on government bonds that
have terms approximating to the terms of the related obligation.
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit
obligation and the fair value of plan assets. This cost is included in ‘Employee benefits expense’ in the
Statement of Profit and Loss.
Re measurement gains and losses arising from experience adjustments and changes in actuarial
assumptions are recognized in the period in which they occur, directly in other comprehensive income.
These are included in retained earnings in the Statement of Changes in Equity.
The Company has gratuity as defined benefit plan where the amount that an employee will receive on
retirement is defined by reference to the employee’s length of service and final salary. The liability
recognized in the balance sheet for Defined Benefit Plans as the present value of the Defined Benefit
Obligation (DBO) at the reporting date. Management estimates the DBO annually with the assistance
of independent actuaries. Actuarial gains and losses resulting from re-measurements of the liability are
included in other comprehensive income.
Defined contribution plans
Contributions under defined contribution plans payable in keeping with the related schemes are
recognized as expenses for the period in which the employee has rendered the service.
Other employee benefits
The liabilities for earned leave are settled wholly within the financial year in which the employees render
the related service.
2.10. Revenue Recognition
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the
company and the revenue can be reliably measured, regardless of when the payment is being made.
Revenue is measured at the fair value of the consideration received or receivable, taking into account
contractually defined terms of payment and excluding taxes or duties collected on behalf of the
government.
The specific recognition criteria described below must also be met before revenue is recognized.
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, usually on delivery of the goods. Revenue from the sale of goods is
measured at the fair value of the consideration received or receivable, net of returns and allowances,
trade discounts and volume rebates.
Service income is recognized as per the terms of contracts with the customers when the related services
are performed or the agreed milestones are achieved and revenue excludes GST, wherever applicable.
Interest Income
Interest income is recognised on a time proportion basis taking into account the amount outstanding and
the applicable interest rate. Interest income is included under the head “other income” in the statement
of profit and loss.
2.11. Foreign currency transactions and translation
Foreign currency transactions are translated into the functional currency using the exchange rates at the
dates of the transactions. The foreign exchange gains and losses are presented in the Statement of Profit
and Loss on a net basis within other income/other expenses.
2.12. Borrowing costs
General and specific borrowing costs that are directly attributable to the acquisition, construction or
production of qualifying asset are capitalized during the period that is required to complete and prepare
the asset for its intended use or sale. Qualifying assets are assets that necessarily take a substantial period
to get ready for their intended use or sale.
Other borrowing costs are expensed in the period in which they are incurred.
2.13. Income Taxes
Tax expense recognized in statement of profit or loss comprises the sum of deferred tax and current tax
except the ones recognized in other comprehensive income or directly in equity.
Calculation of current tax is based on tax rates and tax laws that have been enacted for the reporting
period. Current income tax relating to items recognized outside profit or loss is recognized outside profit
or loss (either in other comprehensive income or in equity). Current tax assets and tax liabilities are
offset where the Company has a legally enforceable right to offset and intends either to settle on a net
basis, or to realise the asset and settle the liability simultaneously.
Deferred tax is recognised on temporary differences between the carrying amounts of assets and
liabilities in the standalone financial statements and the corresponding tax bases used in the computation
of taxable profit. Deferred tax is measured at the tax rates that are expected to be applied to the temporary
differences when they reverse, based on the laws that have been enacted or substantively enacted by the
end of the reporting period. Deferred tax liability are generally recognised for all taxable temporary
differences. Deferred tax assets are generally recognised for all deductible temporary differences to the
extent that is probable that taxable profits will be available against which those deductible temporary
differences can be utilised. Deferred tax assets and liabilities are offset if there is a legally enforceable
right to set off corresponding current tax assets against current tax liabilities and the deferred tax assets
and deferred tax liabilities relate to income taxes levied by the same tax authority on the Company.
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 profit will be available to allow all or part of the
deferred tax asset to be utilized. Unrecognized deferred tax assets are re-assessed at each reporting date
and are recognized to the extent that it has become probable that future taxable profits will allow the
deferred tax asset to be recovered.
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