A. DISCLOSURE OF MATERIAL ACCOUNTING POLICIES

(a) CORPORATE INFORMATION

The Company is a Public Company domiciled in India and
incorporated under the provisions of the Companies Act,
1956. Its shares are listed on The National Stock Exchange
and The Bombay Stock Exchange. The Company is primarily
engaged in manufacturing and sale of Laminate Sheets,
Medium Density Fibre Board, Pre-laminated Medium Density
Fibre Board and Polyvinyl Chloride Board. The Company
presently has manufacturing facilities at Itla, Mansa and
Dholakuva in (Gujarat), Chikkamagaluru (Karnataka) and
Atchutapuram (Andhra Pradesh).

Recent Accounting Pronouncements

Ministry of Corporate Affairs ("MCA") notifies new standards
or amendments to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time
to time. The Ministry of Corporate Affairs vide notification
dated 9 September 2024 and 28 September 2024 notified
the Companies (Indian Accounting Standards) Second
Amendment Rules, 2024 and Companies (Indian Accounting
Standards) Third Amendment Rules, 2024, respectively,
which amended/notified certain accounting standards
(see below), and are effective for annual reporting periods
beginning on or after 1 April 2024:

• Insurance contracts - Ind AS 117; and

• Lease Liability in Sale and Leaseback - Amendments to
Ind AS 116

These amendments did not have any impact on the amounts
recognised in current or prior period. Further, On May 9,
2025, MCA notifies the amendments to Ind AS 21 - Effects
of Changes in Foreign Exchange Rates. These amendments
aim to provide clearer guidance on assessing currency
exchangeability and estimating exchange rates when
currencies are not readily exchangeable. The amendments
are effective for annual periods beginning on or after
April 1, 2025. The Company is currently assessing the
probable impact of these amendments on its financial
statements.

(b) BASIS OF PREPARATION OF FINANCIAL STATEMENTS :

These Financial Statements have been prepared in
accordance with Indian Accounting Standards (Ind AS) as
prescribed under section 133 of the Companies Act, 2013
("the Act") (to the extent notified) read with Rule 3 of the
Companies (Indian Accounting Standards) Rules, 2015 as
amended and other relevant provisions of the Act.

The Financial Statements have been prepared on the
historical cost convention on accrual basis except for certain
financial instruments that are measured at fair values at the
end of each reporting period, as explained in the accounting
policies below.

Historical cost is generally based on the fair value of the
consideration given in exchange for goods and services.

The operating cycle is the time between the acquisition of
assets for processing and their realisation in cash and cash
equivalents. The Company has identified twelve months
as its operating cycle. Accordingly, 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 Ind
AS 1 - 'Presentation of Financial Statements' and Schedule
III to the Companies Act, 2013.

Accounting policies have been consistently applied
consistently to all the periods presented in the financial
statements.

The financial statements are presented in Indian Rupees (?).
Where changes are made in presentation, the comparative
figures of the previous year are regrouped and re-arranged
accordingly.

(c) USE OF ESTIMATES :

The preparation of financial statements in conformity
with generally accepted accounting principles requires
management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosure
of contingent liabilities at the date of the financial statements
and the results of operations during the reporting year end.
Although these estimates are based upon management's
best knowledge of current events and actions, actual results
could differ from these estimates.

(d) PROPERTY, PLANT AND EQUIPMENT:

i) Property, Plant and Equipment are stated at original
cost (net of tax/duty credit availed) less accumulated
depreciation and impairment losses except freehold
land which is carried at fair value. Cost includes cost
of acquisition, construction and installation, taxes,
duties, freight, other incidental expenses related to
the acquisition, and pre-operative expenses including
attributable borrowing costs incurred during
pre-operational period.

ii) 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. The carrying amount of any component as a
separate asset is derecognized when replaced. All other
repairs and maintenance are charged to statement of
profit and loss during the reporting period in which
they are incurred.

iii) Assets which are not ready for their intended use on
reporting date are carried as capital work-in-progress

at cost, comprising direct cost and related incidental
expenses.

iv) Property, Plant and Equipment including continuous
process plants are depreciated and/or amortised on the
basis of their useful lives as notified in Schedule II to the
Companies Act, 2013. The assets' residual values and
useful lives are reviewed, and adjusted if appropriate,
at the end of each reporting period. Depreciation is
provided on straight line method over its useful life (as
per schedule III of the Companies Act 2013)

v) Depreciation in respect of additions to assets has been
charged on pro rata basis with reference to the period
when the assets are ready for use. The provision for
depreciation for multiple shifts has been made in
respect of eligible assets on the basis of operation of
respective units.

vi) An asset's carrying amount is written down immediately
on discontinuation to its recoverable amount if the
asset's carrying amount is greater than its estimated
recoverable amount. Gains and losses on disposals
are determined by comparing proceeds with carrying
amount. These are included in Profit/ Loss on Sale and
Discard of Fixed Assets. However, the company has not
made any disposal/transfer/sale of fixed assets during
the year.

vii) Useful lives of the Property, Plant and Equipment as
notified in Schedule II to the Companies Act, 2013 are
as follows :

Buildings - 30 to 60 years

Plant and Equipments - 15 to 25 years

Furniture and Fixtures - 10 years

Vehicles - 8 to 10 years

Office Equipments - 5 to 10 years

Others - Computer Hardware 3 to 6 years

viii) At each balance sheet date, the Company reviews the
carrying amount of property, plant and equipment
to determine whether there is any indication of
impairment loss. If any such indication exists, the
recoverable amount of the assets is estimated in
order to determine the extent of impairment loss.
The recoverable amount is higher of the net selling
price and the value in use, determined by discounting
the estimated future cash flows expected from the
continuing use of the asset to their present value.

(e) INTANGIBLE ASSETS:

i) Intangible assets acquired by payment e.g.
Computer Software is disclosed at cost less amortization
on a straight-line basis over its estimated useful life.

ii) Intangible assets are carried at cost, net of accumulated
amortization and impairment loss, if any.

iii) Intangible assets are amortised on straight-line method
as follows :

Computer Software - 5 years

iv) At each balance sheet date, the Company reviews the
carrying amount of intangible assets to determine
whether there is any indication of impairment loss.
If any such indication exists, the recoverable amount
of the assets is estimated in order to determine the
extent of impairment loss. The recoverable amount
is higher of the net selling price and the value in use,
determined by discounting the estimated future cash
flows expected from the continuing use of the asset to
their present value.

(f) REVENUE RECOGNITION:

i) Revenue comprises of all economic benefits that arise
in the ordinary course of activities of the Company
which result in increase in Equity, other than increases
relating to contributions from equity participants.
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. Revenue is
measured at the fair value of the consideration received
or receivable.

ii) Sale of Goods: Revenue is recognised at the point in
time when the performance obligation is satisfied and
control of the goods is transferred to the customer
in accordance with the terms of customer contracts.
Generally, control is transferred upon shipment of
goods to the customer or when the goods is made
available to the customer, provided transfer of title to
the customer occurs and the Company has not retained
any significant risks of ownership or future obligations
with respect to the goods shipped.

Revenue is adjusted for variable consideration such as
discounts, rebates, refunds, credits, price concessions,
incentives, or other similar items in a contract when
they are highly probable to be provided.

In revenue arrangements with multiple performance
obligations, the Company accounts for individual
products and services separately if they are distinct -
i.e. if a product or service is separately identifiable from
other items in the arrangement and if a customer can
benefit from it. The consideration is allocated between
separate products and services in the arrangement
based on their stand-alone selling prices. Revenue from
sale of by products are included in revenue.

A contract liability is the obligation to transfer goods
to the customer for which the Company has received
consideration from the customer. Contract liabilities are
recognised as revenue when the Company performs
under the contract.

iii) Services: Revenue is recognized from rendering of
services when the performance obligation is satisfied
and the services are rendered at point in time or over
the period of time in accordance with the terms of
customer contracts. Revenue is measured based on
the transaction price, which is the consideration,
as specified in the contract with the customer.
Revenue also excludes taxes collected from customers.
A contract liability is the obligation to render services
to the customer for which the Company has received
consideration from the customer. Contract liabilities are
recognised as revenue when the Company performs
under the contract.

iv) Export incentives under various schemes are accounted
in the year of export.

v) Interest: Interest income is accrued on a time basis,
by reference to the principal outstanding and at the
effective interest rate applicable.

(g) EMPLOYEE BENEFITS:

i) Short-term employee benefits are recognized as an
expense at the undiscounted amount in the Statement
of Profit and Loss of the year in which the related
service is rendered.

ii) Post Employment and Retirement benefits in the form of
Gratuity are considered as defined benefit obligations
and are provided for on the basis of third party actuarial
valuation, using the projected unit credit method, as at
the date of the Balance Sheet. Every Employee who has
completed five years or more of service is entitled to
Gratuity on terms not less favorable than the provisions
of The Payment of Gratuity Act, 1972.

iii) 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 reporting period on government bonds that
have terms approximating to the terms of the related
obligation.

iv) Employee benefits in the form of Provident Fund
is considered as defined contribution plan and
the contributions to Employees' Provident Fund
Organization established under The Employees'
Provident Fund and Miscellaneous Provisions Act
1952 is charged to the Statement of Profit and Loss
of the year when the contributions to the respective
funds are due. The Company pays provident fund
contributions to publicly administered provident
funds as per local regulations. The Company has no
further payment obligations once the contributions
have been paid.

(h) VALUATION OF INVENTORIES

i) The cost of inventories have been computed to include
all cost of purchases, cost of conversion and other
related costs incurred in bringing the inventories to
their present location and condition. The costs of Raw
Materials, Stores and spare parts etc., consumed consist
of purchase price including duties and taxes (other
than those subsequently recoverable by the enterprise
from the taxing authorities), freight inwards and other
expenditure directly attributable to the procurement.

ii) Stock of Raw Materials are valued at cost and of those in
transit and at port related to these items are valued at
cost to date. Goods and materials in transit are valued
at actual cost incurred up to the date of balance sheet.
Material and supplies held for use in the production
of inventories are not written down if the finished
products in which they will be used are expected to
be sold at or above cost.

iii) Stock of Stores and spare parts are valued at cost; and
of those in transit and at port related to these items are
valued at cost.

iv) Goods-in-process is valued at lower of cost or net
realisable value.

v) Stock of Finished goods is valued at lower of cost or net
realisable value, and Stock at port is valued at Cost.

vi) Stock-in-trade is valued at lower of cost or net realisable
value.

(i) CASH FLOW STATEMENT:

i) Cash flows are reported using indirect method, where
by profit before tax is adjusted for the effects of
transactions of a non-cash nature and any deferrals or
accruals of past or future cash receipts or payments.
The cash flow from regular revenue generating,
financing and investing activities of the Company is
segregated.

ii) Cash and cash equivalents in the balance sheet
comprise cash at bank, cash/cheques in hand and short
term investments with an original maturity of three
months or less.

(j) FINANCIAL ASSETS:

i) The Company classifies its financial assets as those to
be measured subsequently at fair value (through the
standalone Statement of Profit and loss).

ii) Trade receivables represent receivables for goods sold
by the Company up to the end of the financial year.
The amounts are generally unsecured and are usually
received as per the terms of payment agreed with

the customers. The amounts are presented as current
assets where receivable is due with-in 12 months from
the reporting date.

iii) Trade receivables are impaired using the lifetime
expected credit loss model under simplified approach.
The Company uses a matrix to determine the
impairment loss allowance based on its historically
observed default rates over expected life of trade
receivables and is adjusted for forward looking
estimates. At every reporting date, the impairment loss
allowance is determined and updated and the same is
deducted from Trade Receivables with corresponding
charge/credit to the standalone Statement of Profit
and Loss.

iv) A financial asset is derecognized only when the
Company has transferred the rights to receive cash
flows from the financial asset, or when it has transferred
substantially all the risks and rewards of the asset, or
when it has transferred the control of the asset.

(k) FINANCIAL LIABILITIES:

i) Borrowings are initially recognised and subsequently
measured at amortised cost, net of transaction
costs incurred. The transaction costs is amortised
over the period of borrowings using the effective
interest method in Capital Work in Progress up to
the commencement of related Plant, Property and
Equipment and subsequently under finance costs in
the standalone Statement of profit and loss .

ii) Borrowings are removed from balance sheet when
the obligation specified in the contract is discharged,
cancelled or expired.

iii) Borrowings are classified as current liabilities unless
the company has an unconditional right to defer
settlement of the liability for at least 12 months after
the reporting period.

iv) Trade Payables represent liabilities for goods and
services provided to the Company up to the end of
the financial year. The amounts are unsecured and are
usually paid as per the terms of payment agreed with
the vendors. The amounts are presented as current
liabilities unless payment is not due within 12 months
after the reporting period.

v) 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.

vi) Derivative financial instruments are in the nature of
Forward contracts. Forward contracts are executed

to hedge the foreign exchange rate with respect to
liabilities for goods and services in foreign currencies.

vii) Derivative financial instruments are recognised initially
and subsequently at fair value through mark to market
valuation obtained from Forex Advisors. Gain or loss
arising from the changes in fair value of derivatives is
debited to the foreign exchange fluctuations in the
standalone statement of profit and loss.

(l) FAIR VALUE MEASUREMENT:

i) The Company measures financial instruments such as
derivatives at fair value at each balance sheet date.

ii) The Company also measures Land at fair value at each
balance sheet date.

iii) 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 principal or the
most advantageous market must be accessible by the
Company.

iv) The fair value of an asset or liability is measured using
the assumptions that market participants would use
when pricing the asset or liability, assuming that
market participants act in their economic best interest.

v) A fair value measurement of a non- financial asset takes
into account a market participant's ability to generate
economic benefits by using the asset in its highest and
best use or by selling it to another market participant
that would use the asset in its highest and best use.

vi) The Company uses valuation techniques that are
appropriate in the circumstances and for which
sufficient data are available to measure fair value,
maximizing the use of relevant observable inputs and
minimizing the use of unobservable inputs.

vii) All assets and liabilities for which fair value is measured
or disclosed in the financial statements are categorized
with in the fair value hierarchy. The fair value hierarchy
is based on inputs to valuation techniques that are
used to measure fair value that are either observable
or unobservable and consists of following three levels:

Level 1 - Inputs are quoted prices (unadjusted) in
active markets for identical assets or liabilities.

Level 2 - Inputs are other than quoted prices included
with in level 1 that are observable for the assets or

liabilities either directly (pear prices) or indirectly (i.e.
derived prices).

Level 3 - Inputs are not based on observable market
data (unobservable inputs). Fair values are determined
in whole or in part using a Valuation model based on
assumption that are neither supported by prices from
observable current market transactions in the same
instrument nor are they based on available market
data.

(m) FOREIGN CURRENCY TRANSACTIONS:

i) The Company's financial statements are presented
in Indian Rupees ('INR'), which is also the Company's
functional currency.

ii) Foreign currency transactions are recorded on initial
recognition in the functional currency, using the
exchange rate at the date of the transaction. At each
balance sheet date, foreign currency monetary items
are reported using the closing exchange rate.
Exchange differences that arise on settlement of
monetary items or on reporting at each balance sheet
date of the Company's monetary items at the closing
rate are recognised as income or expenses in the period
in which they arise.

iii) Non-monetary items which are carried at historical cost
denominated in a foreign currency are reported using
the exchange rate at the date of the transaction.

(n) LEASE
Operating Lease
As a lessee

Leases in which a significant portion of the risks and rewards
of ownership are not transferred to the Company, as lessee,
are classified as operating leases. Payments made under
operating leases are charged to the Statement of Profit and
Loss on a straight-line basis over the period of the lease
unless the payments are structured to increase in line with
expected general inflation to compensate for the Company's
expected inflationary cost increases.

The Company evaluates if an arrangement qualifies to be a
lease as per the requirements of Ind AS 116. Identification
of a lease requires significant judgment. The Company
uses significant judgement in assessing the lease term
(including anticipated renewals) and the applicable
discount rate. The Company determines the lease term as
the non-cancellable period of a lease, together with both
periods covered by an option to extend the lease if the
Company is reasonably certain to exercise that option; and
periods covered by an option to terminate the lease if the
Company is reasonably certain not to exercise that option.
In assessing whether the Company is reasonably certain
to exercise an option to extend a lease, or not to exercise

an option to terminate a lease, it considers all relevant
facts and circumstances that create an economic incentive
for the Company to exercise the option to extend the
lease, or not to exercise the option to terminate the lease.
The Company revises the lease term if there is a change in
the non-cancellable period of a lease.

(o) BORROWING COSTS:

i) Borrowing costs are interest and other costs (including
exchange differences relating to foreign currency
borrowings to the extent that they are regarded as an
adjustment to interest costs) incurred in connection
with the borrowing of funds.

ii) General and specific borrowing costs that are directly
attributable to the acquisition or construction of
qualifying assets are capitalised as part of the cost of
such assets during the period of time that is required
to complete and prepare the asset for its intended
use. A qualifying asset is one that takes necessarily
substantial period of time to get ready for its intended
use.

iii) All other borrowing costs are expensed in the period in
which they are incurred.

(p) ACCOUNTING FOR TAXES ON INCOME:

i) Tax expenses comprise of current tax and deferred tax
including applicable surcharge and cess.

ii) Current Income tax is computed using the tax effect
accounting method, where taxes are accrued in the
same period in which the related revenue and expenses
arise. A provision is made for income tax annually, based
on the tax liability computed, after considering tax
allowances and exemptions. Provisions are recorded
when it is estimated that a liability due to disallowances
or other matters is probable.

iii) Deferred tax is provided using the balance sheet
approach on temporary differences at the reporting
date between the tax bases of assets and liabilities
and their carrying amounts for financial reporting
purposes at the reporting date. Deferred tax liabilities
are recognised for all taxable temporary differences.
Deferred tax assets are recognised for all deductible
temporary differences, the carry forward of unused tax
credits and any unused tax losses. Deferred tax assets
are recognised to the extent that it is probable that
taxable profits against which the deductible temporary
differences, and the carry forward unused tax credits
and unused tax losses can be utilised.

iv) 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 assets to be utilised. Unrecognised deferred tax
assets are reassessed at each reporting date and are
recognized to the extent that it becomes probable that
future taxable profits will allow the deferred tax asset
to be recovered. Deferred tax assets and liabilities are
measured at the tax rates that are expected to apply
in the year when the asset is realized or the liability is
settled, based on the tax rates and tax laws that have
been enacted or substantively enacted at the reporting
date.

v) Deferred tax is recognised in the statement of profit
and loss, except to the extent that it relates to items
recognised in other comprehensive income. As such,
deferred tax is also recognised in other comprehensive
income.

vi) Deferred Tax Assets and Deferred Tax Liabilities are
offset, if a legally enforceable right exists to set off
current tax assets against current tax liabilities and the
Deferred Tax Assets and Deferred Tax Liabilities relate
to taxes on income levied by same governing taxation
laws.