Material Accounting Policies:a) Statement of Compliance:
These financial statements are prepared in accordance with the Indian Accounting Standards (Ind AS) notified under
the Companies (Indian Accounting Standards) Rules, 2015 as amended from time to time, the relevant provisions of the
Companies Act, 2013 (the Act) and guidelines issued by the Securities and Exchange Board of India (SEBI), as applicable.
Accounting policies have been consistently applied except where newly issued accounting standard or revision to existing
accounting standards requires changes in the existing accounting policies.
The financial statements were authorized for issue by the Board of Directors of the Company at their meeting held 27th April
2026.
b) Basis of preparation of Accounts:Basis of Preparation:
The financial statements have been prepared on a historical cost basis, except for the following assets and liabilities:
i. Certain financial assets and liabilities measured at fair value and classified as fair value through other comprehensive
income or fair value through Profit or Loss; and
ii. Employee's Defined Benefit Plan as per Actuarial Valuation.
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 under current market conditions, regardless of whether that price is directly
observable or estimated using another valuation technique. In determining the fair market value of an asset or liability if
market participants would take those characteristics into account when pricing the asset or liability at the measurement data.
Functional and Presentation Currency:
The financial statements are presented in Indian Rupees, which is the functional currency of the Company and the currency
of the primary economic environment in which the Company operates. All amounts have been rounded off to the nearest
Lakh except share data, unless otherwise indicated.
Classification of Assets and Liabilities into Current/Non-Current:
The Company has ascertained its operating cycle as twelve months for the purpose of Current/ Non-Current classification
of its Assets and Liabilities.
For the purpose of Balance Sheet, an asset is classified as current if:
i. It is expected to be realised, or is intended to be sold or consumed, in the normal operating cycle; or
ii. It is held primarily for the purpose of trading; or
iii. It is expected to realise the asset within twelve months after the reporting period; or
iv. The asset is a cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least
twelve months after the reporting period.
All other assets are classified as non-current.
Similarly, a liability is classified as current if:
i. It is expected to be settled in the normal operating cycle; or
ii. It is held primarily for the purpose of trading; or
iii. It is due to be settled within twelve months after the reporting period; or
iv. The Company does not have an unconditional right to defer the settlement of the liability for at least twelve months after the
reporting period. Terms of a liability that could result in its settlement by the issue of equity instruments at the option of the
counterparty does not affect this classification.
All other liabilities are classified as non-current.
c) Property, Plant and Equipment (PPE):
PPE is stated at cost less accumulated depreciation. The initial cost of PPE comprises of its purchase price, including import
duties and non-refundable purchase taxes, and any directly attributable costs of bringing an asset to working condition and
location for its intended use, including relevant borrowing costs and any expected costs of decommissioning,
Subsequent expenditure relating to PPE are capitalized only when it is probable that future economic associated with these
will flow to the Company and cost of the item can be measured reliably. Repairs and maintenance cost are charged to the
Statement of Profit and Loss in the period in which the costs are incurred.
Material items such as spare parts, stand-by equipment and service equipment are classified as PPE when they meet the
definition of PPE as specified in Ind AS 16 - Property, Plant and Equipment.
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 derecognition of the asset
(calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the
income statement when the asset is derecognized.
d) Depreciation:
Depreciation is calculated on cost of items of property, plant and equipment less their estimated residual values over their
estimated useful lives using the straight-line method, and is generally recognized in the Statement of Profit and Loss.
Freehold land is not depreciated.
The estimated useful life of items of property, plant and equipment are as follows: (work under process)
Depreciation on additions (disposals) is provided on a pro-rata basis i.e. from (up to) the date/month on which asset is ready
for use (disposed of).
e) Intangible Assets and Amortization:
Intangible assets with finite useful life that are acquired separately are stated at acquisition cost less accumulated amortization
and impairment losses, if any. The Company determines the useful life as the period over which the future economic benefits
will flow to the Company after taking into account all relevant facts and circumstances.
Amortization is calculated over the cost of the asset, or other amount substituted for cost. Amortization is recognized in
Statement of Profit and Loss on a straight-line basis over the estimated useful life of intangible assets from the date that they
are available for use.
The Company has determined useful life of software as 3 to 10 years.
Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal
proceeds and the net carrying amount of the asset and are recognized in the statement of Profit and Loss when the asset
is derecognized.
Research and development costs
Expenditure pertaining to research is expensed as incurred. Expenditure incurred on development is capitalized if such
expenditure leads to creation of an asset, otherwise such expenditure is charged to the Statement of Profit and Loss.
f) Capital Work in Progress:
Advances paid towards acquisition of PPE outstanding at each Balance Sheet date is classified as capital advances under
other non-current assets and cost of the assets not put to use before such date are disclosed under Capital Work in Progress.
g) Investment property:
Investment property is property held either to earn rental income or for capital appreciation or for both, but not for sale in the
ordinary course of business, use in the production or supply of goods or services or for administrative purposes. Investment
properties are stated at cost less accumulated depreciation and accumulated impairment losses, if any. The cost includes
the cost of replacing parts and borrowing costs for long term construction projects if the recognition criteria are met. When
significant parts of the property are required to be replaced at intervals, the Company depreciates them separately based on
their specific useful lives.
Subsequent expenditure is capitalized to the assets carrying amount only when it is certain that the future economic benefits
associated with the expenditure will flow to the Company and the cost of the item can be measured reliably. All other repairs
and maintenance and other costs are expensed when incurred.
Investment properties are de-recognized either when they have been disposed off or when they are permanently withdrawn
from use and no future economic benefit is expected from their disposal. The difference between the net disposal proceeds
and the carrying amount of the asset is recognized in the statement of profit and loss in the period of derecognition.
h) Reclassification to investment property:
When the use of a property changes from owner-occupies to investment property, the property is reclassified as investment
property at its carrying amount on the date of reclassification.
i) Impairment of Non-Financial Assets:
Assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be
recoverable. An impairment loss is recognized for the amount by which the asset's carrying amount exceeds its recoverable
amount. The recoverable amount is the higher of an asset's fair value less cost of disposal and value in use. For the purposes
of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows
which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units).
j) Inventories:Inventories are valued as follows:
Inventories are valued at Lower of Weighted Average cost or estimated net realizable value & are net of Goods and Service
Tax (GST). Cost includes cost of conversion and other costs incurred in bringing the inventories at their present location and
condition. Cost of conversion for the purpose of valuation of WIP and finished goods includes fixed and variable production
overheads incurred in converting the material into their present condition and location.
Inventory of machinery spares and maintenance materials not being material are expensed in the year of purchase. However,
machinery spares that meets the definition of property, plant and equipment are capitalized in the financial statements.
k) Borrowing Costs:
Borrowing cost includes interest, amortization of ancillary costs incurred in connection with the arrangement of borrowings.
Borrowing costs directly attributable to the acquisition, construction or development of an asset that necessarily takes a
substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective asset.
All other borrowing costs are expensed in the year they occur.
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