2.1. Basis of preparation and presentation:

The standalone financial statements comply with Indian Accounting Standards ('Ind AS') notified under
Section 133 of the Companies Act, 2013 ('Act') read with Companies (Indian Accounting Standards) Rules,
2015, as amended and other relevant provisions of the Act and Rules thereunder.

The standalone financial statements have been prepared under historical cost convention using the accrual
method of accounting basis except for certain assets and liabilities measured at fair value. The accounting
policies are applied consistently to all the periods presented in the standalone financial statements.

All assets and liabilities have been classified as current or non-current as per the Company's normal
operating cycle, para 66 and 69 of Ind AS 1 and other criteria as set out in the Division II of Schedule III to
the Act.

Based on the nature of 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 current or non-current classification of assets and liabilities. Deferred tax assets and
liabilities are classified as non-current assets and liabilities.

The standalone financial statements are presented in Indian Rupee (INR), the functional currency of the
Company.

All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakhs,
unless otherwise stated.

The financial statements of the Company for the year ended 31st March, 2026 were approved for issue in
accordance with a resolution of the Board of Directors in its meeting held on 22nd April, 2026.

2.2. Use of Judgements and Estimates:

The preparation of the standalone financial statements requires management to make judgments,
estimates and assumptions that affect the reported amounts of revenue, expenses, assets, liabilities and
accompanying disclosures.

Uncertainty about these assumptions and estimates could result in outcomes that require material
adjustments to the carrying amount of assets or liabilities in future periods. The Company continually
evaluates these estimates and assumptions based on the most recently available information.

In particular, information about significant areas of estimates and judgements in applying accounting
policies that have most significant effect on amounts recognised in the standalone financial statements
are as below:

• Estimates of useful lives and residual value of property, plant and equipment and intangible assets;

• Measurement of defined benefit obligations;

• Measurement and likelihood of occurrence of provisions and contingencies;

• Measurement of Right of Use assets and Lease liabilities;

• Measurement of recoverable amounts of cash-generating units;

• Valuation of inventories;

• Provision for loss allowances;

• Fair value measurement of financial instruments;

• Recognition of deferred tax assets.

Revisions to accounting estimates are recognised prospectively.

2.3. Property, plant and equipment and Depreciation:

2.3.1. Property, plant and equipment are stated at cost net of accumulated depreciation and accumulated
impairment losses, if any;

2.3.2. The initial cost of an asset comprises its purchase price (including import duties and non-refundable
taxes), 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, the initial estimate of any
decommissioning obligation, if any, and, borrowing cost for qualifying assets (i.e. assets that necessarily
take a substantial period of time to get ready for their intended use);

2.3.3. Directly attributable costs includes cost of testing (net off proceeds from selling any items produced).
Excess of net sale proceeds of items produced over the cost of testing, if any, is deducted directly from
attributable costs of an item of property, plant, and equipment.

2.3.4. Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated
with the expenditure will flow to the Company;

2.3.5. Spare parts which meet the definition of property, plant and equipment are capitalised as property, plant
and equipment in case the unit value of the spare part is above the threshold limit. In other cases, the
spare part is inventorised on procurement and charged to Statement of profit and loss on consumption;

2.3.6. An item of property, plant and equipment and any significant part initially recognised separately as part
of property, plant and equipment is derecognised upon disposal; or when no future economic benefits
are expected from its use or disposal. Any gain or loss arising on de-recognition of the asset is included
in the Statement of Profit and Loss when the asset is derecognised;

2.3.7. The residual values and useful lives of property, plant and equipment are reviewed at each financial year
end and changes, if any, are accounted in the line with revisions to accounting estimates;

2.3.8. Property, plant and equipment which are not ready for intended use as on date of Balance Sheet are
disclosed as “Capital work-in-progress”;

2.3.9. Depreciation is provided on pro-rata basis on the straight-line method (after retaining the estimated
residual value up to 5%) based on estimated useful life prescribed under Schedule II to the Act, except for
assets costing Rs.5,000/- or less are fully depreciated or fully written off in the year of purchase;

2.3.10. Components of the main asset that are significant in value and have different useful lives as compared to
the main asset are depreciated over their estimated useful life. Useful life of such components has been
assessed based on historical experience and internal technical assessment;

2.3.11. Depreciation on spare parts specific to an item of property, plant and equipment is based on life of
the related property, plant and equipment. In other cases, the spare parts are depreciated over their
estimated useful life based on the technical assessment;

2.3.12. The Company had chosen the carrying value of Property, Plant and Equipment existing as per previous
GAAP as on date of transition to Ind AS i.e. 1st April, 2016 as deemed cost.

2.4. Intangible Assets and Amortisation:

2.4.1. Intangible assets are recognised only if it is probable that the future economic benefits that are attributable
to the assets will flow to the enterprise and the cost of the assets can be measured reliably;

2.4.2. Intangible assets are carried at cost net of accumulated amortization and accumulated impairment losses,
if any;

2.4.3. An intangible asset is derecognised on disposal, or when no future economic benefits are expected from
use or disposal. Gains or losses on de-recognition are determined by comparing proceeds with carrying
amount. These are included in profit or loss within other gains/(losses);

2.4.4. The estimated useful life is reviewed at each financial year end and changes, if any, are accounted in the
line with revisions to accounting estimates;

2.4.5. Intangible assets which are not ready for intended use as on date of Balance Sheet are disclosed as
“Intangible assets under development”;

2.4.6. The intangible assets with a finite useful life are amortised using straight line method over their estimated
useful lives. The management's estimates of the useful lives for various class of Intangibles are as given
below:

2.5. Leases:

The Company assesses whether a contract is or contains a lease, at the inception of a contract. A contract
is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period
of time in exchange for consideration.

To assess whether a contract conveys the right to control the use of an identified asset, the Company
assesses whether

a) the contract involves the use of an identified asset;

b) the Company has substantially all of the economic benefits from use of the asset through the period
of the lease and

c) the Company has the right to direct the use of the asset.

2.5.1. As a lessee

The right-of-use asset is a lessee's right to use an asset over the life of a lease. At the date of commencement
of the lease, the Company recognises a right-of-use asset and a corresponding lease liability for all lease
arrangements in which it is a lessee, except for short-term leases and leases of low value assets. For these,
the Company recognises the lease payments as an operating expense.

The right-of-use assets are initially recognised 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, if any. Right-of-use assets are depreciated from the commencement
date on a straight-line basis over the shorter of the lease term and useful life of the underlying asset.

The lease liability is initially measured 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. The lease liability is subsequently remeasured by increasing the carrying
amount to reflect interest on the lease liability and reducing the carrying amount to reflect the lease
payments made.

A lease liability is remeasured upon the occurrence of certain events such as a change in the lease term or
a change in an index or rate used to determine lease payments. The remeasurement normally also adjusts
the leased assets.

2.5.2. As a lessor

A lessor shall classify each of its leases as either an operating lease or a finance lease.

Finance leases

A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental
to ownership of an underlying asset. Company shall recognise assets held under a finance lease in its
balance sheet and present them as a receivable at an amount equal to the net investment in the lease.

Operating leases

A lease is classified as an operating lease if it does not transfer substantially all the risks and rewards
incidental to ownership of an underlying asset. Company shall recognise lease payments from operating
leases as income on straight line basis over the term of relevant lessee.

2.6. Investment in Subsidiaries:

Investments in Subsidiaries are carried at cost less accumulated impairment losses, if any. Where an
indication of impairment exists, the carrying amount of the investment is assessed and written down
immediately to its recoverable amount. On disposal of investments in subsidiaries, the difference between
net disposal proceeds and the carrying amounts are recognised in the standalone statement of profit and
loss.

2.7. Impairment of Non-financial Assets:

2.7.1. Non-financial assets other than inventories, deferred tax assets and non-current assets classified as
held for sale are reviewed at each Balance Sheet date to determine whether there is any indication of
impairment. If any such indication exists or when annual impairment testing for an asset is required, the
Company estimates the asset's recoverable amount. The recoverable amount is the higher of the 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 inflows that are largely
independent of those from other assets or group of assets;

2.7.2. 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.

2.8. Inventories:

2.8.1. Inventories are valued at lower of cost and net realisable value. The cost of raw material is arrived on First-
in-first-out basis;

2.8.2. Cost of raw materials and stores and spares includes cost of purchase and other costs incurred in bringing
the inventories to their present location and condition. The aforesaid items are valued at net realisable
value if the finished products in which they are to be incorporated are expected to be sold at a loss;

2.8.3. 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.