2. Material Accounting Policies:

This note provides a list of the material accounting policies adopted in the preparation of these financial
statements. These policies have been consistently applied to all the years presented, unless otherwise
stated.

a) Basis of Preparation of Financial Statements

(i) Compliance with Indian Accounting Standards (IND AS)

These financial statements of the Company have been prepared in accordance with Indian Accounting
Standards (“Ind AS”) notified under Section 133 of the Companies Act, 2013 (the Act) read with Companies
(Indian Accounting Standards) Rules 2015, as amended and other relevant provisions of the Act. The
financial statements comply in all material aspects with Ind AS notified under the Act read with other
relevant provisions of the Act.

The accounting policies are applied consistently to all the periods presented in the financial statements.

(ii) Historical Cost Convention

The financial statements have been prepared on a historical cost basis, except the following:

* Certain financial assets and liabilities that are measured at fair value.

* Defined benefit plans - plan assets measured at fair value.

The fair value measurements are categorized into Level 1,2, or 3 based on the degree to which the inputs to
the fair value measurements are observable and the significance of the inputs to the fair value
measurement in its entirety, as described below:

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

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset/liability,
either directly (i.e. as prices) or indirectly (i.e. derived from prices)

Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable
inputs)

(iii) Current and Non - Current Classification

All assets and liabilities have been classified as current or non current as per the Company's normal
operating cycle and other criteria set out in the Schedule III to the Companies Act 2013.

Deferred Tax assets and liabilities are classified as Non-current assets and liabilities.

The company has identified Twelve months for the classification as current and non current.

(iv) Rounding of amounts

All amounts disclosed in the financial statements and notes have been rounded off to the nearest two
decimal places of lakhs as per the requirement of Schedule III, unless otherwise stated.

Statement of Material Accounting Policies forming part of the Standalone Financial Statements for the
year ended March 31,2025 (Contd...)

b) Foreign Currency Translation

(i) Functional and presentation currency

Items included in the financial statements are measured using the currency of the primary economic
environment in which the entity operates ('the functional currency'). The financial statements are presented
in Indian Rupee (Rs), which is the Company's functional and presentation currency.

(ii) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates at the
dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such
transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at
year end exchange rates are generally recognized in the Statement of Profit and Loss.

c) Revenue Recognition

Revenue from contracts with customers is recognised on transfer of control of promised goods or service to
a customer at an amount that reflects the consideration to which the company is expected to be entitled to in
exchange for those goods or services. The company recognises the revenue at the amount of transaction
price on the satisfaction of performance obligation. Revenue towards satisfaction of a performance
obligation is measured at the amount of transaction price (net of variable consideration) allocated to that
performance obligation. The transaction price of goods sold and services rendered is net of variable
consideration on account of various discounts and schemes offered by the Company as part of the contract.

Revenue is recognised only to the extent that is highly probable that the amount will not be subject to
significant reversal when uncertainty relating to its recognition is resolved.

Sale of products

Timing of recognition - Revenue from sale of products is recognized when the performance obligations are
satisfied and the control of the products is transferred to customers based on the terms of contract.
Revenue is recognised when collectability of the resulting receivable is reasonably assured.

Measurement of revenue -Revenue is measured based on the transaction price, which is the consideration,
net of customer incentives, discounts, variable considerations, payments made to customers as specified
in the terms of contract with customers. A receivable is recognized when the goods are dispatched,
delivered or upon formal customer acceptance depending on terms of contract with the customer.

Rendering of services

Revenue from services is recognized in accordance with the specific terms of contract on performance
when the collectability of the resulting receivable is reasonably assured.

Income from energy generated

Revenue from energy generated through windmills is recognised based on the contractual rates with the
customers and the credit granted by the regulatory authorities to the said customers for units generated.

Other Operating revenues

Other operating revenues comprise of income from ancillary activities incidental to the operations of the
company and is recognised when the right to receive the income is established as per the terms of the
contract.

d) Other Income

Other income comprising of interest income and rental income are accounted on accrual basis.

Dividend income from investments is recognised when the company's right to receive payment has been
established (provided that it is probable that the economic benefits will flow to the company and the amount
of income can be measured reliably).

Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective
interest rate applicable (provided that it is probable that the economic benefits will flow to the Company and
the amount of income can be measured realiably).

e) Government Grants

Grants from the government (including export incentives) are recognised only where there is a reasonable
assurance that the grant will be received and the Company will comply with all attached conditions.

Government grants are recognised in profit and loss account on a systematic basis over the periods in
which they accrue. Income is deferred in case the Income is recognized in future periods.

f) Current Tax

Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the
taxation authorities.

Current tax is the amount of income tax payable in respect of taxable profit for the year. The Company's
current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the
reporting period. The Management periodically evaluates positions taken in the tax returns with respect to
situations in which applicable tax regulations are subject to interpretation and establishes provisions where
appropriate.

Deferred Tax

Deferred tax is provided using the balance sheet method on temporary differences 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 profit will be available against which the deductible temporary temporary differences, and the carry
forward of unused tax credits and unused tax losses can be utilized.

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. Unrecognised deferred tax assets are re-assessed at each reporting date and
recognised to the extent that it has become 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 tax rates and tax laws that have been enacted or
substantively enacted at the reporting date. Deferred tax is recognised in Statement of Profit and Loss,
except to the extent relates to items recognised in Other Comprehensive Income, in which case, it is
recognised in Other Comprehensive Income. 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
taxes relate to the same taxable entity and the same taxation authority.

g) Leases

As a lessee :

The Company recognizes a right-of-use asset (ROU) and a corresponding lease liability for all lease
arrangements in which it is a lessee, except for leases with a term of twelve months or less (short-term
leases)and low value leases. For these short-term and low value leases, the Company recognizes the
lease payments as an operating expense on a straight -line basis over the term of the lease. Certain lease
arrangements includes the options to extend or terminate the lease before the end of the lease term. ROU
Assets and lease liabilities includes these options when it is reasonably certain that they will be exercised.

The right-of-use assets are initially recognized 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-
ofuse assets are depreciated from the commencement date on a straight -line basis over the shorter of the
useful life of the asset or the balance lease term of the underlying asset. Right of use assets are evaluated
for recoverability whenever events or changes in circumstances indicate that their carrying amounts may
not be recoverable.

The lease liability is initially measured at amortized cost at the present value of the future lease payments.
The lease payments are discounted using the interest rate implicit in the lease or, if not readily
determinable, using the incremental borrowing rates in the country of domicile of the leases. Lease
Liabilities are re-measured with a corresponding adjustment to the related right of use asset if the company
changes its assessment if whether it will exercise an extension or a termination option. Lease liability and
ROU asset shall be separately presented in the Balance Sheet and Lease payments shall be classified as
financing cash flows.

As a lessor :

The Company classifies the lease when it does not transfer substantially all the risks and rewards of
ownership of an asset as operating leases. The rental income under operating lease is recognised in the
Statement of Profit and Loss on a straight-line basis over the term of the lease. Initial direct costs incurred in
negotiating and arranging an operating lease are added to the carrying amount of the leased asset and
recognised over the lease term.

h) Property, Plant and Equipment

Property, Plant and Equipment are measured at cost net of tax / duty credit availed less accumulated
depreciation and accumulated impairment losses, if any. Freehold land is not depreciated.

Cost includes related taxes, duties, freight, insurance etc., attributable to acquisition and installation of
assets and borrowing cost incurred up to the date of commencing operations, but excludes duties and taxes
that are recoverable from taxing authorities.

Subsequent cost are included in the asset's carrying amount or recognised as a separate asset, as
appropriate, only when it is probable that future economic benefit 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
accounted for as a separate asset is derecognised when replaced. Cost in the nature of repairs and
maintenance are recognised in the Statement of Profit and Loss during the reporting period in which they
are incurred.

Assets which are not ready for their intended use and other capital work in progress are carried at cost,
comprising direct cost, related incidental expenses and attributable interest. Advances given towards
acquisition of Property, Plant and Equipment outstanding at each balance sheet date are disclosed as
Capital Advances under Other Non-Current Assets.

Transition to Ind AS

On transition to Ind AS, the Company has elected to continue with the carrying value of all its property,
plant and equipment.

Depreciation/Amortisation methods, estimated useful lives and residual value

Depreciation is calculated using the straight-line basis and the rates arrived are based on the useful lives
prescribed in Schedule ll to the Companies Act, 2013, except in respect of the following assets, where
useful life is different than those specified in Schedule II to the Companies Act are used:

Derecognition

An item of Property, plant and equipment is derecognised upon disposal / when no future economic benefits
are expected to arise from the continued use of assets. Gains or losses on disposal are determined by
comparing proceeds with the carrying amount.

i) Intangible assets

i) Recognition

Intangible assets are recognised only when future economic benefits arising out of the assets flow to the
enterprise and are amortised over their useful life.

ii) Amortization methods and periods

The Company amortizes intangible assets on a straight line method over their estimated useful life not
exceeding 5 years. Software is amortised over a period of three years.

j) Impairment of Assets

Property, plant and equipment and intangible assets are tested for impairment annually whenever events or
changes in circumstances indicate that the carrying amount may not be recoverable. An Impairment loss is
recognised 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 costs 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). Non- financial assets other than good that suffered an impairment are
reviewed for possible reversal of the impairment at the end of each reporting period.

k) Biological Assets:

Livestock - Cattles

Livestock are measured at fair value less cost to sell. Costs to sell include the transportation charges for
transporting the cattle to the market but excludes finance costs and income taxes. Changes in fair value of
livestock are recognised in the Statement of Profit and Loss. Costs such as vaccination, fodder and other
expenses are expensed as incurred.

l) Cash Flow Statement & Cash and Cash Equivalents

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of
transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments.
The cash flows from operating, investing and financing activities of the Company are segregated based on
the available information.

For the purpose of presentation in the Cash flow statement, cash and cash equivalents includes cash on
hand, deposits held at call with financial institutions, other short-term highly liquid investments with original
maturities of three months or less that are readily convertible to known amounts of cash and which are
subject to an insignificant risk of changes in value.

m) Trade Receivables

Trade receivables are recognised initially at transaction price.

n) Inventories

Raw materials and stores, work-in-progress, finished goods are stated at the lower of cost and net
realizable value.

Cost of raw materials comprise of cost of purchase.

Cost of work-in-progress and finished goods comprises direct materials, direct labour and an appropriate
proportion of variable and fixed overhead expenditure, the later being allocated on the basis of normal
operating capacity.

Cost of inventories also include all other cost incurred in bringing the inventories to their present location
and condition. Costs are assigned to individual items of inventory on weighted average basis. Costs of
purchased inventory are determined after deducting rebates and discounts.

Net realizable value is the estimated selling price in the ordinary course of business less the estimated
costs of completion and the estimated costs necessary to make the sale.

o) Investment in Associates

The investment in associates are carried in the financial statements at historical cost except when
the investment is classified as held for sale in which case it is accounted in accordance with Ind AS 105 -
"Non - current assets held for sale and discontinued operations".

Investments in associates carried at cost are tested for impairment in accordance with Ind AS 36. Any
impairment loss reduces the carrying value of the investment. The impairment losses so recognised is
limited to the carrying value of the investment.

p) Financial Instruments

A financial instrument is a contract that gives rise to a financial asset of one entity and a financial liability or
equity instrument of another entity. Financial assets and financial liabilities are recognised when the
Company becomes a party to the contractual provisions of the relevant instrument.

Financial Instruments are initially measured at fair value other than trade receivables which is recognized at
transaction value. Transaction costs that are directly attributable to the acquisition or issue of financial
assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit
or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as
appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial
assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss.

Financial Assets
i.) Classification

The company classifies its financial assets in the following measurement categories:

a) those to be measured subsequently at fair value (either through other comprehensive income, or
through profit or loss), and

b) those measured at amortised cost.

The classification depends on the entity's business model for managing the financial assets and the
contractual terms of the cash flows.

For assets measured at fair value, gains and losses will either be recorded in Statement of profit or loss or
other comprehensive income. For investments in debt instruments, this will depend on the business model
in which the investment is held. For investments in equity instruments, this will depend on whether the
Company has made an irrevocable election at the time of initial recognition to account for equity investment
at fair value through other comprehensive income.

The Company reclassifies debt investments only when its business model for managing those assets
changes.

ii) Initial Recognition

All financial assets are recognised initially at fair value, plus in the case of financial assets not at recorded at
fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the
financial assets. However, trade receivables that do not contain a significant financing component are
measured at transaction price.

iii) Subsequent measurement

Subsequent measurement of debt instruments depends on the Company's business model for managing
the assets and the cash flow characteristics of the asset. There are three measurement categories into
which the Company classifies its debt instruments:

Amortised cost :

Assets that are held for collection of contractual cash flows where those cash represents the solely
payments of principal and interest are measured at amortised cost. A gain or loss on a debt investment that
is subsequently measured at amortised cost and is not part of a hedging relationship is recognised in profit
or loss when the asset is derecognized or impaired. Interest income from these financial assets is included
in finance income using the effective interest rate method.

Fair Value through Other Comprehensive Income (FVOCI) :

Assets that are held for collection of contractual cash flows and for selling the financial assets, where the
asset's cash flows represent solely payments of principal and interest, are measured at fair value through
other comprehensive income (FVOCI). Movements in the carrying amount are taken through OCI, except
for the recognition of impairment gains or losses, interestrevenue and foreign exchange gains and losses
which are recognised in profit and loss. When the financial asset is derecognized, the cumulative gain or
loss previously recognised in OCI is reclassified from equity to profit or loss and recognised in other gains /
(losses). Interest income from these financial assets is included in other income using the effective interest
rate method.

Fair Value through Profit or Loss (FVTPL) :

Assets that do not meet the criteria for amortised cost or FVOCI are measured at fair value through profit or
loss. A gain or loss on debt investment that is subsequently measured at fair value through profit or loss is
recognised in profit or loss and presented net in the statement of profit and loss in the period in which it
arises. Interest income from these financial assets is included in other income.

Equity instruments :

The Company subsequently measures all equity investments (other than investment in associates) at fair
value. Dividends from such investment are recognised in profit or loss as other income when the
Company's right to receive payments is established.

Changes in the fair value of financial assets at fair value through profit or loss are recognised in the
other income.

iv) Impairment of Financial Assets

The Company assesses the expected credit losses associated with its assets carried at amortised cost in
accordance with Ind AS 109. The Company recognises impairment losses on its financial assets based on
whether there has been a significant increase in credit risk. The Company applies the simplified approach in
accordance with Ind AS 109 Financial Instruments on trade receivables, where lifetime impairment losses
is recognised at each reporting date, right from initial recognition of the receivables.

The Company recognises impairment loss on other financial assets measured at fair value at amortised
cost, the Company determines if there has been a significant increase in credit risk of the financial asset
since initial recognition. If the credit risk has not increased significantly, an amount equal to 12 month
expected credit losses is measured as loss allowance. However, if credit risk has increased significantly, an
amount equal to lifetime expected credit losses is measured and recognised as loss allowance.

v) Derecognition of Financial Assets

A financial asset is derecognized only when

a) The company has transferred the rights to receive cash flow from the financial asset or

b) The rights to receive the cash flows of the financial assets have expired

q) Derivatives

The Company enters into certain derivative contracts to hedge risks which are not designated as
hedges. Such contracts are accounted at fair value through profit or loss and are included in profit and loss
account.

r) Offsetting financial instruments

Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is
a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis
or realize the asset and settle the liability simultaneously. The legally enforceable right must not be
contingent on future events and must be enforceable in the normal course of business and in the event of
default, insolvency or bankruptcy of the Company or the counter party.

Financial Liabilities

Classification as debt or equity

Debt and equity instruments issued by the Company are classified as either financial liabilities or as
equity in accordance with the substance of the contractual arrangements and the definitions of a financial
liability and an equity instrument.

Initial Recognition and Measurement

All financial liabilities are initially recognised at the value of respective contractual obligations. The
Company's financial liabilities includes loans and borrowings, trade and other payables are recognised
at net of directly attributable transaction costs

Subsequent Measurement

All financial liabilities are subsequently measured at amortised cost using the effective interest rate
mehtod.

Derecognition of Financial Liabilities

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or
expires. When an existing financial liability is replaced by another financial liability from the same lender on
substantially different terms, or the terms of an existing liability are substantially modified, such an
exchange or modification is treated as the de-recognition of the original financial liability and the
recognition of a new financial liability. The difference in the respective carrying amounts is recognised in the
Statement of Profit and Loss.

s) Borrowing costs

General and specific borrowing costs that are directly attributable to the acquisition, construction or
production of a qualifying asset are capitalized during the period of time 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 of time to get ready for their intended use or sale.

Investment income earned on the temporary investment of specific borrowings pending their expenditure
on qualifying assets is deducted from the borrowing cost eligible for capitalization.

Other borrowings costs are expensed in the period in which they are incurred.