2. | MATERIAL ACCOUNTING POLICIES

2.1 Statement of Compliance

These standalone financial statements (hereinafter
referred to as "financial statements") are prepared in
accordance with the Indian Accounting Standards
("Ind AS") as per the Companies (Indian Accounting
Standards) Rules, 2015, as amended from time to time,
notified under Section 133 of Companies Act, 2013
("the Act"), amendments thereto and other relevant
provisions of the Act.

The standalone financial statements were authorised
for issue in accordance with a resolution passed at the
meeting of the Board of Directors held on 14 May, 2025.

2.2 Basis of preparation and presentation

The standalone financial statements have been
prepared on the historical cost basis, except for the
following assets and liabilities -

(i) Derivative Financial Instruments measured at fair
value.

(ii) Certain financial assets and liabilities measured
at fair value (refer accounting policy regarding
financial instruments).

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 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 economic best interest.
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.
The Company uses valuation techniques that are
appropriate in the circumstances and for which
sufficient data are available to measure fair value,
maximising the use of relevant observable inputs and
minimising the use of unobservable inputs.

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

2.3 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.

2.4 Current and non-current classification

Based on the time involved between the acquisition
of assets for processing and their realisation in cash
and cash equivalents, the Company has identified 12
months as its operating cycle for determining current
and non-current classification of assets and liabilities
in the Balance Sheet.

2.5 Trade Receivable

Trade receivables are amounts due from customers for
goods sold or services performed in the ordinary course
of business and reflect Company's unconditional right to
consideration (that is payment is due only on the passage
of time). Trade receivables are recognised initially at
the transaction price as they do not contain significant
financing components. The Company holds the trade
receivables with the objective to collect the contractual
cash flows and therefore measures them subsequently
at amortised cost using the effective interest method,
less loss allowance. On account of adoption of Ind AS
109, the Company uses expected credit loss model to
assess the impairment loss or gain.

2.6 Foreign currency translation
Transactions and balances

Transactions in foreign currency are recorded applying the
exchange rate at the date of transaction. Monetary assets
and liabilities denominated in foreign currency remaining
unsettled at the end of the year are translated at the
closing rates prevailing on the Balance Sheet date. Non¬
monetary items which are carried in terms of historical
cost denominated in foreign currency are reported using
the exchange rate at the date of transaction. Exchange
differences arising as a result of the above are recognised
as income or expenses in the statement of profit and
loss. Exchange difference arising on the settlement of
monetary items at rates different from those at which
they were initially recorded during the year, or reported in
previous standalone financial statements, are recognised
as income or expenses in the year in which they arise.

2.7 Derivative financial instruments

Initial recognition and subsequent measurement

The Company uses derivative financial instruments,
such as forward currency contracts to hedge its foreign
currency risks. Such derivative financial instruments are
initially recognised at fair value on the date on which a
derivative contract is entered into and are subsequently
re-measured at fair value. Derivatives are carried as
financial assets when the fair value is positive and as
financial liabilities when the fair value is negative. Fair
value changes are recognised in the statement of profit
and loss and are included in Foreign exchange (gain) /
loss.

2.8 Revenue Recognition

Revenue is recognised upon transfer of control of
promised goods to customers in an amount that
reflects the consideration which the Company expects
to receive in exchange for those goods. To recognise
revenues, the Company applies the following five step
approach:

- identify the contract with a customer,

- identify the performance obligations in the
contract,

- determine the transaction price,

- allocate the transaction price to the performance
obligations in the contract, and

- recognise revenues when a performance
obligation is satisfied.

Sale of goods

The Company recognised revenue from sale of goods
measured upon satisfaction of performance obligation
which is at a point in time when control is transferred to
the customer which is usually on shipment / dispatch /
delivery. Depending on the terms of the contract, which
differs from contract to contract, the goods are sold
on a reasonable credit term. As per the terms of the
contract, consideration that is variable, according to Ind
AS 115, is estimated at contract inception and updated
thereafter at each reporting date or until crystallisation
of the amount.

Revenue is measured based on the transaction price,
which is the consideration, adjusted for trade discount,
cash discount, volume discounts, rebates, scheme
allowances, incentives and returns, if any, as specified
in the contracts with the customers. Revenue excludes
taxes collected from customers on behalf of the
government. Accruals for discounts/incentives and
returns are estimated (using the most likely method)
based on accumulated experience with customers. Due
to the short nature of credit period given to customers,
there is no financing component in the contract.

Interest income

Interest income from financial assets is recognised
when it is probable that 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, which is the rate
that exactly discounts estimated future cash receipts
through the expected life of the financial assets to that
asset’s net carrying amount on initial recognition.

Dividends

Dividend income from investments is recognised
when the shareholder’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).

Insurance claims

Insurance claims are accounted for based on claims
admitted and to the extent that there is no uncertainty
in receiving the claims.

Export incentives

An export incentive (i.e. Duty Drawback, Merchandise
Export Incentive Scheme and other schemes as per the

Export Import Policy) is recognised in the statement of
profit and loss when the right to receive credit as per
the terms of the scheme is established in respect of
export made, and there is no uncertainty to its receipt.

2.9 Taxation
Current tax

Current income tax assets and liabilities are measured
at the amount expected to be recovered from or paid
to the taxation authorities in accordance with the
Income-tax Act, 1961. The tax rates and tax laws used
to compute the amount are those that are enacted
or substantively enacted, at the reporting date. The
Company has adopted the new Income-tax Regime
with effect from 01 April, 2022.

Current income tax relating to items recognised
outside profit or loss is recognised outside profit or loss
(either in other comprehensive income or in equity).
Current tax items are recognised in correlation to the
underlying transaction either in OCI or directly in equity.
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 income tax assets and liabilities are recognised
for deductible and taxable temporary differences arising
between the tax base of assets and liabilities and their
carrying amount, except when the deferred income tax
arises from the initial recognition of an asset or liability
in a transaction that is not a business combination and
affects neither accounting nor taxable profit or loss at
the time of the transaction.

Deferred tax is not recognised for- temporary
differences on the initial recognition of assets or
liabilities in a transaction that:

1. Is not a business combination.

2. At the time of the transaction (i) affects neither
accounting nor taxable profit or (loss) and (ii)
does not give rise to equal taxable and deductible
temporary difference.

Deferred tax assets are recognised only to the
extent that it is probable that either future taxable
profits or reversal of deferred tax liabilities will be
available, against which the deductible temporary
differences, and the carry forward of unused tax
credits and unused tax losses can be utilised.

The carrying amount of a deferred tax asset shall
be reviewed at the end of 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 income tax asset
to be utilised.

Deferred tax assets and liabilities are measured
using the tax rates and tax laws that have been
enacted or substantively enacted by the end of the
reporting period and are expected
to apply when the related deferred tax asset is
realised or the deferred tax liability is settled.
Deferred tax assets and liabilities are offset when
there is a legally enforceable right to offset current
tax assets and liabilities and when the deferred tax
balances relate to the same taxation authority.

2.10 Property, Plant and Equipment ("PPE") and
Depreciation

Recognition and measurement

The cost of an item of property, plant and equipment
shall be recognised as an asset if, and only if 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. On adoption of
Ind AS, the Company retained the carrying value for
all of its property, plant and equipment as recognised
in the standalone financial statements as at the date
of transition to Ind ASs, measured as per the previous
GAAP and used that as its deemed cost as permitted
by Ind AS 101 'First-time Adoption of Indian Accounting
Standards’.

PPE are initially recognised at cost. The initial cost
of PPE comprises its purchase price, including non¬
refundable duties and taxes net of any trade discounts
and rebates. The cost of PPE includes taxes, duties,
freight, interest on borrowings (borrowing cost) directly
attributable to acquisition, construction or production
of qualifying assets and other incidental expenses
which are required to bring the asset in the condition
for its intended use. Subsequent to initial recognition,
PPE are stated at cost less accumulated depreciation
and 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. The carrying amount of any component
accounted for as a separate asset is derecognised
when replaced. All other repairs and maintenance are
charged to profit or loss during the reporting period in
which they are incurred.

The residual values, useful life and depreciation method
are reviewed at each financial year-end to ensure that
the amount, method and period of depreciation are

consistent with previous estimates and the expected
pattern of consumption of the future economic benefits
embodied in the items of property, plant and equipment.
An item of property, plant and equipment is derecognised
upon disposal or when no future economic benefits are
expected to arise from the continued use of the asset.
Any gain or loss arising on disposal or retirement of an
item of property, plant and equipment is determined as
the difference between sales proceeds and the carrying
amount of the asset and is recognised in profit or loss.
Fully depreciated assets still in use are retained in the
Standalone financial statements.

Depreciation and amortisation

Depreciation is provided after impairment, if any, using
the straight-line method as per the useful lives of the
assets estimated by the management, or at rates
prescribed under Schedule II of the Companies Act
2013. The Company has used the following estimated
useful life to provide depreciation on its property, plant
and equipment.

An asset’s carrying amount is written down immediately
to its recoverable amount if the asset’s carrying amount
is greater than its estimated recoverable amount.

2.H Intangible assets and amortisation

Intangible assets acquired separately are measured on
initial recognition at cost. Following initial recognition,
intangible assets are carried at cost less accumulated
amortisation and accumulated impairment losses, if
any.

Intangible assets are amortised over the useful
economic life. Amortisation is recognised in the
statement of profit and loss on a straight-line basis
over the estimated useful lives of respective intangible
assets.

An intangible asset is derecognised on disposal, or when
no future economic benefits are expected from use or
disposal. Gains or losses on derecognition are determined
by comparing proceeds with carrying amount. These are
included in the statement of profit and loss within other
expenses.

Subsequent expenditure-

subsequent expenditure is capitalised only when it
increases the future economic benefits embodied in
the specific asset to which it relates, and the cost of the
asset can be measured reliably.

Research and Development costs, Product
Registration and Licences

Research costs are expensed as incurred. Development
expenditures on an individual project are recognised
as an intangible asset when the Company can
demonstrate:

- The technical feasibility of completing the
intangible asset so that the asset will be available
for use or sale

- Its intention to complete and its ability and
intention to use or sell the asset

- It is probable that future economic benefits
will flow to the Company and the Company has
control over the asset

Cost of Product Registration generally comprise of
costs incurred towards creating product dossiers, fees
paid to registration consultants, application fees to the
government authorities, data compensation costs, data
call-in costs and fees for task-force membership.

In situations where consideration for data compensation
is under negotiation and is pending finalisation of
contractual agreements, cost is determined on a best
estimate basis by the management and revised to
actual amounts on conclusion of agreements.
Following initial recognition of the development
expenditure as an asset, the asset is carried at cost
less any accumulated amortisation and accumulated
impairment losses.

Amortisation of the asset begins when development
is complete, and the asset is available for use. It is
amortised over the period of expected future benefit.
Amortisation expense is recognised in the statement of
profit and loss unless such expenditure forms part of
carrying value of another asset.

2.12 Impairment of non-financial assets

The Company assesses, at each reporting date, whether
there is an indication that an asset may be impaired.
If any indication exists, or when annual impairment
testing for an asset is required, the Company estimates
the asset’s 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 inflows 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 value in use, the estimated future cash
flows are discounted to their present value using a
pre-tax discount rate that reflects 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 considered.
If no such transactions can be identified, an appropriate
valuation model is used. These calculations are
corroborated by valuation multiples, quoted share
prices for publicly traded companies or other available
fair value indicators.

The Company bases its impairment calculation on
detailed budgets and forecast calculations, which are
prepared separately for each of the Company’s CGUs
to which the individual assets are allocated. These
budgets and forecast calculations generally cover a
period of five years. For longer periods, a long-term
growth rate is calculated and applied to project future
cash flows after the fifth year. To estimate cash flow
projections beyond periods covered by the most
recent budgets/forecasts, the Company extrapolates
cash flow projections in the budget using a steady or
declining growth rate for subsequent years, unless an
increasing rate can be justified. In any case, this growth
rate does not exceed the long-term average growth
rate for the products, industries, or country or countries
in which the entity operates, or for the market in which
the asset is used.

An assessment is made at each reporting date to
determine whether there is an indication that previously
recognised impairment losses no longer exist or have
decreased. If such indication exists, the Company
estimates the asset’s or CGU’s recoverable amount. A
previously recognised impairment loss is reversed only
if there has been a change in the assumptions used to
determine the asset’s recoverable amount since the
last impairment loss was recognised. The reversal is
limited so that the carrying amount of the asset does
not exceed its recoverable amount, nor exceed the
carrying amount that would have been determined,
net of depreciation, had no impairment loss been
recognised for the asset in prior years. Such reversal is
recognised in the statement of profit and loss.
Intangible assets are tested for impairment annually
as at the balance sheet date at the CGU level, as
appropriate, and when circumstances indicate that the
carrying value may be impaired.

At inception of a contract, the Company assesses
whether a contract is, or contains, a lease. 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.

Company as a lessee:

At commencement or on modification of a contract that
contains a lease component, the Company allocates the
consideration in the contract to each lease component
on the basis of its relative stand-alone prices.

The Company recognises a right-of-use asset and a
lease liability at the lease commencement date. The
right-of-use asset is initially measured at cost, which
comprises the initial amount of the lease liability
adjusted for any lease payments made at or before
the commencement date, plus any initial direct costs
incurred and an estimate of costs to dismantle and
remove the underlying asset or to restore the underlying
asset or the site on which it is located, less any lease
incentives received.

The right-of-use asset is subsequently depreciated
using the straight-line method from the commencement
date to the end of the lease term, unless the lease
transfers ownership of the underlying asset to the
Company by the end of the lease term or the cost of
the right-of-use asset reflects that the Company will
exercise a purchase option. In that case the right-
of-use asset will be depreciated over the useful life
of the underlying asset, which is determined on the
same basis as those of property and equipment. In
addition, the right-of-use asset is periodically reduced
by impairment losses, if any, and adjusted for certain
remeasurements of the lease liability.

The Company presents right-of-use assets that do not
meet the definition of investment property in 'property
and equipment’ and lease liabilities in the statement of
financial position.

The Company has elected not to apply the requirements
of Ind AS 116 Leases to short-term leases of all assets
that have a lease term of 12 months or less and leases
for which the underlying asset is of low value. The lease
payments associated with these leases are recognised
as an expense on a straight-line basis over the lease
term. Such operating lease payments are recognised
as an expense in the Statement of Profit and Loss on a
straight-line basis over the term of the relevant lease.
The Company’s leases mainly comprise office
buildings. The Company leases buildings for office
purpose.

Inventories include raw materials, traded goods and
finished goods. Inventory is valued at lower of cost or
net realisable value. The comparison of cost and net
realisable value is made on an item to item basis.

Cost comprises the purchase price, costs of conversion
and other related costs incurred in bringing the
inventories to their present location and condition.
Cost is determined on a weighted average basis
as per individual location which is done on specific
identification of batches.

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

The Company reviews the condition of its inventories
and makes provision against obsolete and slow-moving
inventory items which are identified as no longer suitable
for sale or use. Obsolete and slow-moving items
are valued at cost or estimated net realisable value,
whichever is lower. Any write-down of inventories is
recognised as an expense during the year.