1 (B) Material Accounting Policies

(a) 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 and relevant amendment rules
thereafter and presentation requirements of Division II
of Schedule III notified under Section 133 of Companies
Act, 2013 ("the Act''), amendments thereto and other
relevant provisions of the Act and guidelines issued by
the Securities and Exchange Board of India ("SEBI"), as
applicable.

The financial statements were authorised for issue by the
Board of Directors of the Company at their meeting held
on April 27, 2026.

(b) Basis of Preparation and Presentation:

Basis of Preparation

The financial statements have been prepared and
presented on the going concern basis and under the
historical cost, 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)

(iii) Assets held for Sale - measured at the lower of
its carrying amount and fair value less costs on
disposal of assets and its value in use.

(iv) Employee's Defined Benefit Plan as per actuarial
valuation.

(v) Assets and liabilities acquired under Business
Combination measured at fair value; and

(vi) Employee share based payments measured 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 under current market conditions,
regardless of whether that price is directly observable
or estimated using another valuation technique. In
determining the fair value of an asset or a liability, the
Company takes into account the characteristics of the
asset or liability if market participants would take those
characteristics into account when pricing the asset or
liability at the measurement date.

The accounting policies have been applied consistently
to all the periods presented in the standalone
financial statements.

Functional and Presentation Currency

(i) The financial statements are presented in Indian
Rupees, which is also the functional currency of
the Company and the currency of the primary
economic environment in which the Company
operates.

(ii) Figures less than ' 50,000 have been shown
at actual, wherever statutorily required to be
disclosed, all other figures have been rounded off in
decimals to the nearest ' in lakhs, unless otherwise
stated.

Classification of Assets and Liabilities into Current/
Non-Current

The Company has ascertained its operating cycle as
twelve months for the purpose of Current / Non-Current
classification of its Assets and Liabilities.

For the purpose of Balance Sheet, an asset is classified
as current if:

(i) It is expected to be realised, or is intended to be
sold or consumed, in the normal operating cycle; or

(ii) It is held primarily for the purpose of trading; or

(iii) It is expected to realise the asset within twelve
months after the reporting period; or

(iv) The asset is a cash or cash equivalent unless it is
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.

Similarly, a liability is classified as current if:

(i) It is expected to be settled in the normal operating
cycle; or

(ii) It is held primarily for the purpose of trading; or

(iii) It is due to be settled within twelve months after
the reporting period; or

(iv) The Company does not have an unconditional right
to defer the settlement of the liability for at least
twelve months after the reporting period. Terms of
a liability that could result in its settlement by the
issue of equity instruments at the option of the
counterparty does not affect this classification.

All other liabilities are classified as non-current.

Deferred tax assets and liabilities are classified as
non-current only.

(c) Property, Plant and Equipment (PPE):

The cost of an item of PPE is recognised as an asset 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.

The initial cost of PPE comprises its purchase price
net of any trade discounts and rebates, including
import duties and non-refundable purchase taxes, and
any directly attributable costs of bringing an asset to
working condition and location for its intended use,
including relevant borrowing costs and any expected
costs of decommissioning.

Subsequent costs incurred are included in the assets'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. All other repairs and maintenance cost are
charged to the Statement of Profit and Loss during the
period in which they were incurred.

If significant parts of an item of PPE have different
useful lives, then they are accounted for as separate
items (major components) of PPE.

Material items such as spare parts, stand-by equipment
and service equipment are classified as PPE when they
meet the definition of PPE as specified in Ind AS 16 -
Property, Plant and Equipment.

An item of Property, Plant and Equipment is
derecognised on disposal or when no future economic
benefits are expected from its use. The gain or loss
arising on derecognition, determined as the difference
between the disposal proceeds and the carrying amount,
is recognised in the Statement of Profit and Loss.

PPE except freehold land are stated at their cost
of acquisition/installation or construction net of
accumulated depreciation, and impairment losses, if any.
Freehold land is stated at cost less impairment losses, if
any.

The Company had opted for deemed cost exemption
under Ind AS 101 on transition of Ind AS.

Expenditure during construction period:

Expenditure/ Income during construction period
(including financing cost related to borrowed funds for
construction or acquisition of qualifying PPE) is included
under Capital Work-in-Progress (CWIP), and the same
is allocated to the respective PPE on the completion of
their construction. Advances given towards acquisition
or construction of PPE outstanding at each reporting
date are disclosed as Capital Advances under "Other
Non-Current Assets".

(d) Depreciation:

Depreciation is the systematic allocation of the
depreciable amount of PPE over its useful life and is
provided on a straight-line basis over the useful lives as

Depreciation on additions is provided on a pro-rata
basis from the month of installation or acquisition and
in case of Projects from the date of commencement of
commercial production. Depreciation on deductions/
disposals is provided on a pro-rata basis up to the month
preceding the month of deduction/disposal.

(e) Intangible Assets and Amortisation:

• Internally generated Intangible Assets:

Expenditure pertaining to research is expensed
out as and when incurred. Expenditure incurred
on development is capitalised as an asset if it is
probable that future economic benefits associated
with the item will flow to the company and cost can
be measured reliably, otherwise such expenditure is
charged to the Statement of Profit and Loss.

Subsequent costs incurred are capitalized, only
when it increase the future economic benefits
associated with the asset and will flow to the
Company whose cost can be measured reliably.

• Intangible Assets acquired separately:

Intangible assets acquired separately are measured
on initial recognition at cost. Cost comprises the
purchase price (net of tax / duty credits availed
wherever applicable) and any directly attributable
cost of bringing the assets to its working condition
for its intended use. Intangible assets with finite
useful lives that are acquired separately are
carried at cost less accumulated amortisation and
accumulated impairment loss, if any. Amortization
amount for intangible asset is the cost less
estimated residual values using straight line method
over their estimated residual useful lives. The
Company determines the amortisation period as
the period over which the future economic benefits
will flow to the Company after taking into account
all relevant facts and circumstances. The estimated
useful life and amortisation method are reviewed
periodically, with the effect of any changes in
estimate being accounted for on a prospective
basis.

• Class of intangible assets and their estimated useful
lives / basis of amortisation are as under:

An intangible asset is derecognised on disposal, or when
no future economic benefits are expected from its use
or disposal. Gains or losses arising from derecognition
of an item of intangible asset are measured as the
difference between the net disposal proceeds and the
carrying amount of such item of intangible asset and are
recognised in the Statement of Profit and Loss when the
asset is derecognised.

(f) Assets (or disposal groups) classified as held for
sale:

The Company classifies assets as held for sale if their
carrying amounts will be recovered primarily through
a sale transaction rather than through continuing use.
This condition is regarded as met only when the asset
is available for immediate sale in its present condition
subject only to terms that are usual and customary
for sales of such asset and its sale is highly probable.
Such assets or group of assets / liabilities are presented
separately in the Balance Sheet, in the line "Assets held
for sale" and "Liabilities held for sale" respectively. Once
classified as held for sale, intangible assets and PPE are
no longer amortised or depreciated.

Such assets or disposal groups held for sale are stated at
the lower of carrying amount and fair value less costs to
sell.

[g) Impairment of Non-Financial Assets:

At the end of each reporting period, the Company
reviews the carrying amounts of non-financial assets
to determine whether there is any indication that
those assets have suffered an impairment loss. If any
such indication exists, the recoverable amount of the
asset is estimated in order to determine the extent of
the impairment loss (if any). When it is not possible to
estimate the recoverable amount of an individual asset,
the Company estimates the recoverable amount of
the cash-generating unit to which the asset belongs.
When a reasonable and consistent basis of allocation
can be identified, corporate assets are also allocated to
individual cash-generating units, or otherwise they are
allocated to the smallest group of cash-generating units
for which a reasonable and consistent allocation basis
can be identified.

Intangible assets with indefinite useful lives and
intangible assets not yet available for use are tested for
impairment at least annually and whenever there is an
indication that the asset may be impaired.

Recoverable amount is the higher of fair value less
costs of disposal and value in use. 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 for which the
estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash¬
generating unit) is estimated to be less than its carrying
amount, the carrying amount of the asset (or cash¬
generating unit) is reduced to its recoverable amount. An
impairment loss is recognised immediately in Statement
of Profit and Loss.

When an impairment loss subsequently reverses, the
carrying amount of the asset (or a cash-generating unit)
is increased to the revised estimate of its recoverable
amount, but so that the increased carrying amount does
not exceed the carrying amount that would have been
determined had no impairment loss been recognised
for the asset (or cash-generating unit) in prior years. A
reversal of an impairment loss is recognised immediately
in the Statement of Profit and Loss.

(h) Inventories:

Inventories are valued as follows:

• Raw materials, fuel, stores & spares and packing
materials:

Valued at lower of cost and net realisable value
(NRV). However, these items are considered to
be realisable at cost, if the finished products, in
which they will be used, are expected to be sold
at or above cost. Cost is determined on weighted
average basis which includes expenditure incurred
for acquiring inventories like purchase price, import
duties, taxes (net of tax credit) and other costs
incurred in bringing the inventories to their present
location and condition.

• Work-in- progress (WIP), finished goods,
stock-in-trade and trial run inventories:

Valued at lower of cost and NRV. Cost of Finished
goods, WIP and trial run inventories includes cost
of raw materials, cost of conversion and other costs
incurred in bringing the inventories to their present
location and condition. Cost of stock-in-trade
includes cost of purchase and other costs incurred
in bringing the inventories to the present location
and condition. Cost of inventories is computed on
weighted average basis.

• Waste / Scrap:

Waste / Scrap inventory is valued at NRV.

Net realisable value for inventories 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.

(i) Employee Share based payments:

Equity- settled share-based payments to employees are
measured at the fair value of the employee stock options
at the grant date using an appropriate valuation model.

The fair value determined at the grant date of the
equity-settled share-based payments is amortised over
the vesting period, based on the Company's estimate
of equity instruments that will eventually vest, with a
corresponding increase in equity.

At the end of each reporting period, the Company
revises its estimate of the number of equity instruments
expected to vest. The impact of the revision of the
original estimates, if any, is recognised in the Statement
of Profit and Loss such that the cumulative expense
reflects the revised estimate, with a corresponding
adjustment to the equity-settled employee benefits
reserve.

For Stock Appreciation Rights ("SARs") which are cash-
settled share-based payments, the fair value of liability
is recognised for the services acquired over the period
that the employees unconditionally become entitled to
the payment. At the end of each reporting period until
the liability is settled, and at the date of settlement, the
liability is re-measured based on the fair value of the
SAR's and any changes in fair value of the liability are
recognised in the Statement of Profit and Loss.

(j) Treasury Shares:

The Company has formed an Employee Welfare Trust
for purchasing the Company's shares to be allotted
to eligible employees under Employee Stock Options
Scheme, 2018. The Company has considered the said
Employee Welfare Trust as its extension and shares held
by the Trust is treated as Treasury Shares. As per Ind AS
32, the consideration paid for treasury shares including
any directly attributable incremental cost is presented
as a deduction from total equity, until they are cancelled,
sold or reissued.

(k) Borrowing Costs:

General and specific borrowing costs that are
attributable to the acquisition, construction or
production of a qualifying asset are capitalised as part of
the cost of such asset till such time the asset is ready for
its intended use and borrowing costs are being incurred.
A qualifying asset is an asset that necessarily takes a
substantial period of time to get ready for its intended
use. All other borrowing costs are recognised as an
expense in the period in which they are incurred.

Borrowing cost includes interest expense, amortization
of discounts, hedge related cost incurred in connection
with foreign currency borrowings, ancillary costs
incurred in connection with borrowing of funds and

exchange difference arising from foreign currency
borrowings to the extent they are regarded as an
adjustment to the Interest cost.

(l) Government Grants:

Government grants are not recognised until there is
reasonable assurance that the Company will comply with
the conditions attached to them and that the grants will
be received.

Government grants related to expenses, are recognised
in the Statement of Profit and Loss on a systematic
basis over the periods in which the Company recognises
the related costs for which the grants are intended to
compensate.

Government grants related to income under State
Investment Promotion Scheme linked with Value Added
Tax (VAT) / Goods & Services Tax (GST) payment, are
recognised in the Statement of Profit and Loss on the
event they become receivable.

Where the grant relates to an asset, it is recognised as
income on a systematic basis over the expected useful
life of the related asset.

The benefit of a government loan at a below-market rate
of interest is treated as a government grant, measured
as the difference between proceeds received and the
fair value of the loan based on prevailing market interest
rates and is being recognised in the Statement of Profit
and Loss.