1. MATERIAL ACCOUNTING POLICIES

Company has adopted Indian Accounting Standards ("Ind
AS") notified under the Companies (Indian Accounting
Standards) Rules,2015

1.1 Statement of Compliance

The Ind AS Financial Statements were authorised for issue in
accordance with a resolution of the Board of Directors of the
company passed on 30th May 2025.

1.2 Basis of Preparation

The financial statements of the company are consistently
prepared and presented under historical cost convention
on an accrual basis in accordance with Ind AS except for
certain financial assets and liabilities that are measured at
fair values.

The company's functional currency and presentation
currency is Indian Rupees (INR). All amounts disclosed in the
financial statements and notes are in INR except otherwise
indicated.

Classification of Assets and Liabilities into current and
Non- Current

The Company presents its assets and liabilities in the Balance
Sheet based on current/ non-current classification.

As asset is treated as current when it is:

a) expected to be realised or intended to be sold or
consumed in normal operating cycle;

b) held primarily for the purpose of trading;

c) expected to be realised within twelve months after the
reporting period; or

d) cash or cash equivalent unless 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.

A liability is treated as current when :

a) it is expected to be settled in normal operating cycle;

b) it is held primarily for the purpose of trading;

c) it is due to be settled within twelve months after the
reporting period; or

d) there is no unconditional right to defer the settlement
of the liabilty for at least twelve months after the
reporting period

All other liabilities are classified as non-current.

Based on the nature of products and the time between the
acquisition of assets for processing and their realisation in
cash and cash equivalents, the company has ascertained its
operating cycle being a period within twelve months for the
purpose of current and non-current classification of assets
and liabilities.

1.3 Use of judgements, estimates and assumptions

The preparation of the company's financial statements
required management to make judgements, estimates and
assumptions that affect the reported amount of revenues,
expenses, assets and liabilities, and the accompanying
disclosures, and the disclosures of contingent liabilities.
Uncertainity about these assumptions and estimates could
result in outcomes that require a material adjustment in the
future periods in the carrying amount of assets or liabilities
affected.

In the company's accounting policies, management has
made judgements in respect of evaluation of recoverability
of deferred tax assets,which has the most significant effect
on the amounts recognised in the financial statements:

The following are the key assumptions concerning the future,
and other other key sources of estimation uncertainity at
the end of reporting period that may have significant risk
of causing material adjustments to the carrying amounts of
assets and liabilities with in :-

a) Useful life of property, plant and equipment and
intangible assets: The company has estimated useful
life of the Property, Plant and Equipment as specified
in Schedule II to Companies Act 2013. However, the
actual useful life for individual equipments could turn
out to be different, there could be technology changes,
breakdown, unexpected failure leading to impairment
or complete discard. Alternately, the equipment may
continue to provide useful service well beyond the
useful assumed.

b) Fair value measurement of financial instruments: When
the fair values of financial assets and financial liabilities
cannot be measured based on quoted process in active
market, the fair value is measured using valuation
techniques including book value and discounted cash
flow (DCF) model. The inputs to these models are taken
from observable markets where possible, but where
this is not possible, a degree of judgement is required
in establishing fair values.

c) Impairment of financial and non-financial assets:
The impairment provisions for the financial assets
are based on assumptions about risk of default and
expected loss rates. The company uses judgement in
making these assumptions and selecting the input
for the impairment calculations, based on Company's
past history, existing market conditions, technology,
economic developments as well as forward looking
estimates at the end of each reporting period.

d) Taxes: Taxes have been paid / provided, exemptions
availed, allowances considered etc. are based on the
extent laws and the company's interpretation of the
same based on the legal advice received wherever
required. These could differ in the view taken by the
authorities, clarifications issued subsequently by the
government and court, amendments to statues by the
government etc.

e) Defined benefit plans: The cost of defined benefit
plans and other post-employment benefits plans and
the present value of such obligations are determined
using acturial valuations. An acturial valuation involves
making various assumptions that may differ from
actual developments in the future.

f) Provisions: The Company makes provisions for leave
encashment and gratuity, based on report received
from the independent actuary. These valuation reports
use complex valuation models using not only the
inputs provided by the Company but also various
other economic variables. Considerable judgement is
involved in the process.

g) Contingencies: A provision is recognised when an
enterprise has a present obligation 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. Provisions are
measured at the present value of management's best
estimate of the expenditure required to settle the
present obligations at the end of the reporting period.
However, the actual liability could be considerably
different.

1.4 Property, Plant and Equipment

Freehold land is carried at historical cost. All other property,
plant and equipment are stated at cost, net of recoverable
taxes, trade discounts and rebates less accumulated
depreciation and impairment loss, if any. The cost of tangible
assets comprises its purchase price, borrowing cost, any
costs directly attributable to bringing the asset into the
location and condition necessary for it to be capable of
operating in the manner intended by management, initial
estimation of any decommissioning obligations and finance
cost.

When significant parts of the Property, Plant and Equipment
are required to be replaced at intervals, the company
derecognises the replaced part, and recognises the new
part with its own associated useful life and depreciated
accordingly. Likewise, when a major inspection is performed,
its cost is recognised in the carrying amount of the plant
and equipment as a replacement, if the recognition criteria
are satisfied. All other repair and maintenance costs are
recognised in the Statement of Profit and Loss as incurred.

Cost of Software directly identified with hardware is
recognised along with the cost of hardware.

An item of Property, Plant and Equipment and any significant
part initially recognised is derecognised upon disposal or
when no future economic benefits are expected from its
use. Any gain or loss arising on derecognition of the asset is
included in the Statement of Profit and Loss when the asset
is derecognised.

Capital Work-in- progress includes cost of Property, Plant
and Equipment which are not ready for their intended use.

The residual values and useful lives of Property, Plant and
Equipment are reviewed at each financial year end, and
changes, if any, are accounted prospectively.

Depreciation on the Property, Plant and Equipment is
provided over the useful life of assets as specified in
Schedule II to the Companies Act, 2013 using Written Down
Value method which are as under:

Property, Plant and Equipment which are added/ disposed
off during the year, depreciation is provided on pro rata
basis with reference to the month of addition / deletion.

In line with the provisions of Schedule II of the Companies
Act 2013, the Company depreciates significant components
of the main asset (which have different useful lives as
compared to the main asset) based on the individual useful
life of those components. Useful life for such components
has been assessed based on the historical experience and
internal technical inputs.

Improvements to lease hold building is amortized over the
lease period/residual life of lease period.

1.5 Investment Properties

Property that is held for long term rental yield or for capital
appreciation or for both and that is not occupied by the
company is classified as Investment property. Investment
property is measured initially at its cost including related
transaction cost and where applicable borrowing cost.
Subsequent to initial recognition, Investment properties
are stated at cost less accumulated depreciation and
accumulated impairment loss, if any. Subsequent
expenditure is capitalised to assets carrying amount
only when it is probable the future economic benefits
associated with the expenditure will flow to the company
and cost of item can be measured reliably. Though the
company measures Investment Property using cost based
measurement, the fair value of Investment Property is
disclosed by way of note. Fair values are determined based
on annual evaluation performed by external independent
valuer applying valuation report as per Ind AS 113 "Fair Value
Measurement".

Investment properties are derecognised either when they
have been disposed off or when they are permanently
withdrawn from use and no future economic benefit is
expected from the disposal. The difference between net
disposal proceeds and the carrying amount of asset is
recognised in profit or loss in period of derecognition.

Investment properties are depreciated using written down
value method over their estimated useful life. Transfer of
property from investment property to property, plant &

equipment is made when the property is no longer held for
long term rental yield or for capital appreciation or both at
carrying amount of property transferred.

1.6 Intangible Assets

Intangible Assets are recognised only if they are separately
identiiable and the Company expects to receive future
economic benefits arising out of them. Intangible Assets
are stated at cost of acquisition net of recoverable taxes less
accumulated amortisation/ depletion and impairment loss,
if any. The cost comprises purchase price, borrowing costs,
and any cost directly attributable to bringing the asset to its
working condition for the intended use.

Intangible assets with finite lives are amortised on straight
line basis over their useful economic life and assessed
for impairment whenever there is an indication that the
intangible asset may be impaired. The amortised expense
on intangible assets and impairment loss is recognised in
the Statement of Profit and Loss.

Intangible Assets are amortised over a period of 5 Years.

The useful lives of intangible assets are assessed as either
finite or indefinite.

Gains or losses arising from derecognition of an intangible
asset are recognised in the Statement of Profit and Loss
when the asset is derecognised.

Intangible assets with indefinite useful lives, are not
amortised, but are tested for impairment annually. The
assessment of indefinite life is reviewed annually to
determine whether the indefinite life continues to be
supportable. If not, the change in useful life from indefinite
to finite is made on a prospective basis. The impairment loss
on intangible assets with indefinite life is recognised in the
Statement of Profit and Loss.

1.7 Impairment of Non- Financial assets

At each Balance Sheet date, the Company assesses whether
there is an indication that an asset may be impaired and also
whether there is an indication of reversal of impairment loss
recognised in the previous periods. If any indication exists,
or when annual impairment testing for an asset is required,
the Company determines the recoverable amount and
impairment loss is recognised when the carrying amount of
an asset exceeds its recoverable amount.

An asset's recoverable amount is the higher of an asset's or
cash-generating unit's (CGU) fair value less costs of disposal
and its value in use. Recoverable amount is determined for
an individual asset, unless the asset does not generate cash
inlows that are largely independent of those from other
assets or groups of assets.

When the carrying amount of an asset or CGU exceeds its
recoverable amount, the asset is considered impaired and is
written down to its recoverable amount.

In assessing the value in use, the estimated future cash
flows are discounted to their present value using a pre-tax
discount rate that relects current market assessments of the
time value of money and the risks specific to the asset. In
determining fair value less costs of disposal, recent market
transactions are taken into account. If no such transactions
can be identified,an appropriate valuation model is used.

1.8 Non-current Assets Held for Sale

Non-current assets classified as held for sale are measured at
the lower of carrying amount and fair value less costs to sell.

Non-current assets are classified as held for sale if their
carrying amounts will be recovered through a sale
transaction rather than through continuing use. This
condition is regarded as met only when the sale is highly
probable and the asset is available for immediate sale in its
present condition subject only to terms that are usual and
customary for sales of such assets

Property, plant and equipment and intangible assets are not
depreciated or amortized once classified as held for sale.

1.9 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) Classiication:

The Company classifies financial assets as
subsequently measured at amortised cost, fair
value through other comprehensive income, or
fair value through profit and loss on the basis
of its business model for managing the financial
asset and the contractual cash low characteristics
of the financial asset.

(ii) Initial recognition and measurement

All Financial assets are recognised initially at
fair value plus, in the case of financial assets not
recognised at fair value through profit and loss,
transaction costs that are attributable to the
acquisition of the Financial asset.

(iii) Financial assets measured at amortised cost:

Financial assets are subsequently measured
at amortised cost using effective interest rate
method (EIR), if these financial assets are held
within a business whose objective is to hold these
assets in order 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 outstanding. The losses arising from the
impairment are recognised in the Statement of
Profit and Loss.

(iv) Financial assets at fair value through other
comprehensive income

Financial assets are measured at fair value
through other comprehensive income if these
financial assets are held within a business
whose objective is achieved by both collecting
contractual cash lows and selling financial assets
and the contractual terms give rise to cash flows
that are solely payments of principal and interest
on the principal outstanding.

(v) Financial assets measured at fair value
through profit and loss

Financial assets under this category are measured

initially as well as at each reporting date at fair
value. Fair value movements are recognised in
profit and loss.

(vi) Derecognition of financial assets

A financial asset is primarily derecognised when
the rights to receive cash flows from the asset
have expired or the Company has transferred its
rights to receive cash flows from the asset.

(vii) Investment in Subsidiaries

At Transition date, the company has fair valued its
investment in subsidiaries and associate and fair
value so determined is taken as deemed cost and
thereafter the company follows cost model less
impairment loss, if any.

AA. Impairment of Financial Assets

In accordance with Ind-AS 109, the Company applies
Expected Credit Loss (ECL) model for measurement and
recognition of impairment loss.

The Company follows 'simpliied approach' for recognition
of impairment loss allowance on trade receivables. The
application of simplified approach does not require the
Company to track changes in credit risk. Rather, it recognises
impairment loss allowance based on lifetime ECLs at each
reporting date, right from its initial recognition.

AAA. Impairment of Investment in Subsidiaries and associate

The company reviews its carrying value of investment
carried at deemed cost ( net of impairment if any) annually
or more frequently when there is indication for impairment.
If the recoverable amount is less than its carrying amount,
the impairment loss is accounted in statement of profit &
loss A/c.

B. Financial Liabilities

(i) Classiication

The Company classifies all financial liabilities as
subsequently measured at amortised cost, except
for financial liabilities at fair value through profit
and loss. Such liabilities, including derivatives that
are liabilities, shall be subsequently measured at
fair value.

(ii) Initial recognition and measurement

All financial liabilities are recognised initially at
fair value, in the case of loans, borrowings and
payables, net of directly attributable transaction
costs. Financial liabilities include trade and other
payables, loans and borrowings including bank
overdrafts and derivative financial instruments.

(iii) Subsequent measurement

All financial liabilities are re-measured at fair value
through statement of profit and loss include
financial liabilities held for trading and financial
liabilities designated upon initial recognition
as at fair value through 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.

(iv) Loans and borrowings

Interest bearing loans and borrowings are
subsequently measured at amortised cost using
effective interest rate (EIR) method. Gains and
losses are recognised in Statement of Profit and
Loss when the liabilities are derecognised as
well as through EIR amortisation process. The EIR
amortisation is included as finance cost in the
Statement of Profit and Loss.

(v) Derecognition of financial liabilities

A financial liability is derecognised 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
modiied, 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
recognised in the Statement of Profit and Loss.

(vi) Derivative financial instruments

The Company uses derivative financial
instruments such as forward currency contracts
and options to hedge its foreign currency risks.
Such derivative financial instruments are initially
recognized at fair value on the date on which
a derivative contract is entered into and are
subsequently re-measured at fair value. The gain
or loss in the fair values is taken to Statement of
Profit and Loss at the end of every period. Profit
or loss on cancellations / renewals of forward
contracts and options are recognised as income
or expense during the period.

C. Offsetting of financial instruments

Financial assets and financial liabilities are offset and
the net amount is reported in the Balance Sheet if
there is a currently enforceable legal right to offset
the recognised amounts and there is an intention to
settle on a net basis to realise the assets and settle the
liabilities simultaneously.

1.10 Fair value measurement

The Company measures certain financial assets and inancial
liabilities including derivatives and deined benefit plans at
fair value.

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. The
fair value measurement is based on the presumption 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 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 best economic interest.

All assets and liabilities for which fair value is measured
or disclosed in the financial statements are categorised
within the fair value hierarchy, described as follows, based
on the lowest level input that is signiicant to the fair value
measurement as a whole:

Level 1 — Quoted (unadjusted) market prices in active
markets for identical assets or 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 signiicant to the fair value measurement is
unobservable.

For assets and liabilities that are recognised in the inancial
statements on a recurring basis, the Company determines
whether transfers have occurred between levels in the
hierarchy by re-assessing categorisation (based on the lowest
level input that is significant to the fair value measurement
as a whole) at the end of each reporting period.

1.11 Borrowing cost

Borrowing costs directly attributable to the acquisition,
construction or production of an asset are capitalised as
part of the cost of the asset. All other borrowing costs are
expensed in the period in which they occur.

Borrowing costs consist of interest and other costs that an
entity incurs in connection with the borrowing of funds.
Borrowing cost also includes exchange differences to the
extent regarded as an adjustment to the borrowing costs.