B. MATERIAL ACCOUNTING POLICIES
1. Statement of Compliance with Ind AS:
These financial statements have been prepared in accordance with the Indian Accounting Standards (hereinafter referred to as the
'IndAS') as notified bythe Ministry of CorporateAffairs pursuant to Section 133 of the CompaniesAct, 2013 read with Rule 3 of the
Companies (IndianAccounting Standards) Rules, 2015, as amended till date.
The Financial Statements of the Company have been prepared to comply with the Indian Accounting Standards (Ind AS), including
the Rules notified under the relevant provision of the CompaniesAct, 2013.
The financial statements were authorised for issue in accordance with a resolution passed at the meeting of the Board of Directors
held on 23rd May, 2026
2. Basis of Preparation of Financial Statements:
The standalone financial statements have been prepared on the historical cost basis, except for certain financial assets and
financial liabilities that are required to be measured at fair values at the end of each reporting period by Ind AS. The accounting
policies are applied consistently to all the periods presented in the financial statements.
Historical cost is generally based on fair value of the consideration given in exchange for goods and services.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation
technique.
The Financial Statements have been prepared on accrual and going concern basis.
All assets and liabilities have been classified as current or non current as per the Company's normal operating cycle and other
criteria as set out in the Schedule III to the Companies Act, 2013. Based on the nature of the products and the time between
acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating
cycle as 12 months for the purpose of classification of assets and liabilities as current or non-current.
3. Functional and Presentation Currency:
The standalone 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 the figures have been rounded off to the
nearest INR in Lakhs, unless otherwise indicated.
4. UseofEstimates:
The preparation of financial statements in conformity with Ind AS requires the management of the Company to make estimates and
assumptions that affect the reported amounts of income and expenses of the period, the reported balances of assets and liabilities
and the disclosures relating to contingent liabilities as of the date of the financial statements. These estimates are based upon
management's best knowledge of current events and actions. Difference, if any, between the actual results and estimates is
recognised in the period in which the results are known.
5. Property, Plant and Equipment:
(i) Property, Plant and Equipment is stated at acquisition cost, net of accumulated depreciation and accumulated impairment
losses, if any. Subsequent costs are included in the asset's carrying amount or recognised 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 costs are charged to the Statement of Profit and Loss during the period in
which they are incurred.
(ii) The cost of an asset comprises its purchase price or its construction cost (net of applicable tax credits) and any cost directly
attributable to bring the asset into the location and condition necessary for it to be capable of operating in the manner
intended by the Management. It includes professional fees and, for qualifying assets, borrowing costs capitalised in
accordance with the Company's accounting policy.
(iii) Gains or losses arising on retirement or disposal of property, plant and equipment are recognised in the Statement of Profit
and Loss.
(iv) Property, plant and equipment which are not ready for intended use as on date of Balance Sheet are disclosed as 'Capital
Work-in Progress'.
(v) Depreciation is provided on a pro-rata basis on the straight line method based on estimated useful life prescribed under
Schedule II to the CompaniesAct, 2013 :
The management estimates the useful life of certain assets as follows:
Wire Enamelling Machines & Material Handling Equipments 08 years
Other Plant and Machinery 15 years
Building 30 years
Office Equipments 05 years
Computers 03 years
Furniture and Fixtures 05 years
Freehold land is not depreciated.
Assets Costing Rs. 5,000 or less are fully depreciated in the year of purchase.
(vi) Depreciation on additions to assets or on sale of assets as the case may be is calculated pro-rata from the month of such
addition or up to the month of such sale.
(vii) Assets scrapped / discarded from use and held for disposal, if any, are stated at lower of book value or their estimated net
realisable value.
6. IntangibleAssets:
Separately purchased Intangible assets are initially measured at cost. Subsequently, intangible assets are carried at cost less any
accumulated amortisation and accumulated impairment losses, if any. The useful lives of intangible assets are assessed as either
finite or indefinite. Finite-life intangible assets are amortised on a straight-line basis over the period of their estimated useful lives.
The management estimates the useful life as follows :
Technology Transfer Cost: 6 Years
7. ImpairmentofAssets:
An asset is treated as impaired when the carrying cost of assets exceeds its estimated recoverable value. The recoverable amount
is greater of the Fair Value less cost of disposal and Value in use, An impairment loss is charged to the Profit and Loss Account
in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if
there has been a change in the estimate of recoverable amount. Post impairment, depreciation is provided on the revised carrying
value of the impaired assets over its remaining life.
8. Non-CurrentAssets held for Sale:
The Company classifies Non- Current Assets as held for sale if their carrying amounts will be recovered principally through a sale
rather than through continuing use of the assets and the actions required to complete such sale indicate that it is unlikely that
significant changes to the plan to sell will be made or that the decision to sell will be withdrawn. Also, such assets are classified as
held for sale only if the management expects to complete the sale within one year from the date of classification.
Non-current assets or disposal groups classified as held for sale are measured at the lower of carrying amount and fair value less
costs to sell Property, Plant and Equipment and intangible assets are not depreciated or amortised once classified as held for sale.
9. Financial Instruments:
Investments
Investments are accounted for in accordance with Ind AS 109 - Financial Instruments.
Investments in mutual funds and equity instruments are measured at fair value, with value changes recognised in Statement of
Profit and Loss, except for those equity investments for which the Company has elected to present the value changes in ‘Other
Comprehensive Income'.
The Company makes such election on an instrument to instrument basis. Fair Value changes on an equity instrument is
recognised in the statement of profit and loss unless the company has elected to measure such instrument as FVOCI. Amounts
recognised in OCI are not subsequently reclassifies to the Statement of Profit and Loss.
Investments in mutual funds and equity instruments are initially recognised at fair value. Transaction costs attributable to the
acquisition of investments classified as Fair Value Through Profit or Loss (FVTPL) are recognised in the Statement of Profit and
Loss as incurred.
Subsequent to initial recognition, investments in mutual funds and equity instruments are measured at fair value at each reporting
date. Gains and losses arising from changes in fair value, including gains or losses on disposal and unrealised gains or losses on
remeasurement, are recognised in the Statement of Profit and Loss in the period in which they arise.
The fair value of quoted equity investments is determined using quoted market prices at the reporting date. The fair value of mutual
fund investments is determined based on the Net Asset Value (NAV) declared by the respective mutual fund schemes at the
reporting date.
Dividend income from equity investments is recognised in the Statement of Profit and Loss when the Company's right to receive
payment is established.
10. TradeReceivables:
Trade receivables are measured at their transaction price unless it contains a significant financing component or pricing
adjustments embedded in the contract.
On account of adoption of Ind AS 109, the Company uses expected credit loss model to assess the impairment loss or gain. Loss
allowance for expected life time credit loss is recognised on initial recognition through Profit and LossAccount.
11. Cash and cashEquivalents:
Cash and cash equivalents are short-term (three months or less from the date of acquisition) highly liquid investments that are
readily convertible into cash and which are subject to an insignificant risk of changes in value.
12. Inventories:
(i) Inventories are valued on FIFO basis at lower of cost or estimated net realisable value. However, materials and other items
held for use in the production of inventories are not written down below cost if the finished products in which they will be
incorporated are expected to be sold at cost or above cost.
(ii) Cost of Work in progress includes direct materials and labour and a proportion of manufacturing overheads based on normal
operating capacity.
(iii) Cost of finished goods and work in progress include all costs of purchases, conversion costs and other costs incurred in
bringing the inventories to their present location and condition. The net realisable 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.
(iv) Scrap is valued at Net Realisable Value.
13. Financial Liabilities:
Financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument. Financial
liabilities are initially measured at the amortised cost unless at initial recognition, they are classified as fair value through profit and
loss.
Derecognition
Afinancial liability is derecognised when the obligation specified in the contract is discharged, cancelled or expires.
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