B) Material Accounting Policies
Statement of Compliance:

The financial statements are prepared under the historical cost convention on accrual basis
of accounting and in accordance with Indian Accounting Standards (Ind AS) notified under
the section 133 of the Companies Act, 2013 (the Act), the Companies (Indian Accounting
Standards) Rules, 2015 and other relevant provisions of the Act.

These financial statement has been approved for issue by the Board of Directors at their
meeting held on May 23, 2025.

Basis of preparation of financial statements:

The financial statements have been prepared on a historical cost basis, except for the following
assets and liabilities which have been measured at fair value:

Ý Certain financial assets and liabilities and contingent consideration that is measured at
fair value;

Ý Defined benefit plans - plan assets measured at fair value

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

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between the market participants at the measurement date.

The statement of financial position (including statement of changes in equity) and the statement
of profit and loss are prepared and presented in the format prescribed in Division II of Schedule
III to the Companies Act, 2013. The cash flow statement has been prepared under indirect
method and presented as per the requirements of Ind AS 7 “Cash Flow Statements”. The
disclosure requirements with respect to items in the balance sheet and statement of profit
and loss, as prescribed in Schedule III to the Act, are presented by way of notes forming part
of accounts along with the other notes required to be disclosed under the notified Accounting
Standards.

Functional and Presentation Currency:

These financial statements are presented in Indian Rupees (INR), which is also the Company’s
functional currency. All amounts have been rounded off to the nearest lakhs unless otherwise
indicated. Per share data are presented in Indian Rupees.

Use of Estimates & Judgements:

The preparation of financial statements in conformity with recognition and measurement
principles of Ind AS requires management to make estimates and assumptions that affect
the reported balances of assets and liabilities and disclosure of contingent liabilities as at the
date of the financial statements and the reported amounts of income and expenses during the
reporting period. Although these estimates are based upon Management’s best knowledge
of current events and actions, actual results could differ from these estimates. Differences
between the actual results and estimates are recognised in the year is which the results are
known/ materialised. Any revision to the estimates is recognized and disclosed prospectively
in the current and future periods.

Estimates & underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimates are revised and future periods
are affected.

Fair Value Measurement:

A number of the Company’s accounting policies and disclosures require measurement of fair
values, for both financial and non-financial assets and liabilities.

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 of
liability takes place either:

Ý In the principal market for the asset or liability or

Ý In the absence of a principal market, in the most advantageous market for assets or
liability

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.

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 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:

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

Ý Level 2 - Valuation techniques for which the lowest level input that is significant to the
fair value measurement is directly or indirectly observable.

Ý Level 3 - Valuation techniques for which the lowest level input that is significant to the
fair value measurement is unobservable.

For assets and liabilities that are recognised in the financial statements on a recurring basis,
the Company determines whether transfers have occurred between levels in hierarchy by re¬
assessing categorisation (based on the lowest level input that is significant to the fair value
measurement as a whole) at the end of each reporting period.

For the purpose of fair value disclosures, the Company has determined classes of assets and
liabilities on the basis of the nature, characteristics and risks of the assets and liability and the
level of the fair value hierarchy as explained above.

This note summarises accounting policy for fair value. Other fair value related disclosures are
given in the relevant notes.

Ý Disclosures for valuation methods, significant estimates and assumptions

Ý Financial Instruments (including those carried at amortised cost)

Revenue recognition:

Ý IND AS 115 Revenue from contracts with customers outlines a single comprehensive
model of accounting for revenue from contracts with customers and supersedes current
revenue recognition guidance found within IND AS.

Ý Revenue from sale of goods is recognised net of rebates and discounts on transfer of
significant risks and rewards of ownership to buyer. Sale of goods is recognised gross of
taxes.

Ý Revenue on service contracts is recognized on the basis of completed service contract
method

Ý Export benefits available are accounted for in the year of export, to the extent the
realisation of the same is not considered uncertain by the Company.

Ý Interest is accounted on time proportion basis except in the case of tax assessment
dues/refund, which are accounted on cash basis.

Ý Dividend income is accounted as and when the right to receive is established.

Leases:

The determination of whether an arrangement is (or contains) a lease is based on the
substance of the arrangement at the inception of the lease. The arrangement is, or contains, a
lease if fulfilment of the arrangement is dependent on the use of a specific asset or assets and
the arrangement conveys a right to use the asset or assets, even if that right is not explicitly
specified in an arrangement.

Leases are classified as finance leases whenever the terms of the lease transfer substantially
all the risks and rewards of ownership to the lessee. All other leases are classified as operating
leases.

Finance leases are capitalised at the commencement of the lease at the inception date fair
value of the leased property or, if lower, at the present value of the minimum lease payments.
Lease payments are apportioned between finance charges and reduction of the lease liability
so as to achieve a constant rate of interest on the remaining balance of the liability. Finance
charges are recognised in finance costs in the statement of profit and loss, unless they are
directly attributable to the qualifying assets, in which case they are capitalised in accordance
with the Company’s policy on the borrowing costs.

Contingent rentals, if any, are recognised as expenses in the periods in which they are incurred.

A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable
certainty that the Company will obtain ownership by the end of the lease term, the asset is
depreciated over the shorter of the estimated useful life of the asset and the lease term.

Operating lease payments are recognised as an expense in the statement of profit and loss on
a straight-line basis over the lease term.

Income Taxes:

(i) Current income tax assets and liabilities are measured at the amount expected to be
recovered from or paid to the taxation authorities. Taxable profit differs from ‘profit
before tax’ as reported in the statement of profit and loss because of items of income or
expense that are taxable or deductible in the other years and the items that are never
taxable or deductible. The Company’s current tax is calculated using tax rates which
have been enacted or substantively enacted by the end of reporting period. Management
periodically evaluates positions taken in tax return with respect to situations in which
applicable tax regulations are subject to interpretation and establishes provisions where
appropriate.

(ii) Deferred tax is recognised on temporary differences between the carrying amount of
assets and liabilities in the financial statements and the corresponding tax base used
in computation of taxable profit. Deferred tax liabilities are generally recognised for all
taxable temporary differences. Deferred tax assets (including unused tax credits and
unused tax losses) are generally recognised for all deductible temporary differences
to the extent that it is probable that taxable profits will be available against which those
deductible temporary differences can be utilised.

The carrying amount of deferred tax asset is reviewed at the end of each reporting period and
reduced to the extent that it is no longer probable that sufficient taxable profits will be available
to allow all or part of asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in
the period in which the liability is settled or the asset is realised based on tax rates (and tax
laws) that have been enacted or substantially enacted by the end of the reporting period.

Deferred tax relating to items recognised outside profit or loss is recognised outside profit
or loss (either in OCI or in equity). Deferred tax items are recognised in correlation to the
underlying transactions either in OCI or directly in equity.

Property, Plant and Equipment:

Recognition and Measurement:

Property, plant & equipment acquired by the Company are reported at acquisition cost, with
deductions for accumulated depreciation and impairment losses, if any. The acquisition cost
includes purchase price (excluding refundable taxes) and expenses, such as delivery and
handling costs, installation, legal and consultancy services, directly attributable to bringing the
asset to the site and in working condition for its intended use.

Subsequent Expenditure

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

Depreciation:

Depreciation is calculated on cost of items of property, plant and equipment less their estimated
residual value over their estimated useful lives using the straight line method and is generally
recognised in the statement of profit and loss.

The Company has charged Depreciation based on the basis of Straight Line Method and
useful life of assets prescribed in Schedule II of the Companies Act, 2013, except for individual
assets costing up to Rupees five thousand are depreciated in full in the period of purchase.

The residual values, useful lives and method of depreciation of PPE is reviewed at each
financial year end and adjusted prospectively, if appropriate. Any gain or loss arising on
disposal or retirement of an item of property, plant and equipment is determined as the
difference between the sale proceeds and the carrying value of the asset and is recognised in
profit and loss account.

Capital work in progress is stated at cost.

Intangible Assets:

Intangible assets acquired separately are measured on initial recognition at cost. The useful
lives of intangible assets are assessed as either finite or indefinite.

Intangible assets with finite lives are amortised over useful economic life and assessed for
impairment whenever there is an indication that the intangible asset may be impaired. The
amortisation period and the amortisation method for an intangible asset with a finite useful life
are reviewed at least at the end of each reporting period.

Intangible assets with indefinite useful lives are not amortised, but are tested for impairment
annually. The assessment of indefinite life is reviewed annually to determine whether the
indefinite life continues to be supportable. If not, the change in useful life from indefinite to
finite is made on a prospective basis.

Employee Benefits:

Provident Fund

Retirement benefit in the form of provident fund is a defined contribution scheme. The Company
has no obligation other than the contribution payable to the provident fund. Contribution as
required by the Statute paid to the Government Provident Fund as also contribution paid to
other recognized Provident Fund Trust is debited to the Statement of Profit and Loss.

Gratuity

Gratuity liability is a defined benefit obligation for employees. The Company’s net obligation in
respect of a defined benefit plan is calculated by estimating the amount of future benefit that
employees have earned in return for their service in the current and prior periods; that benefit
is discounted to determine its present value, and the fair value of any plan assets is deducted.

Actuarial gains and losses are recognised immediately in the Statement of Profit and Loss. Re¬
measurement which comprise of actuarial gain and losses, the return of plan assets (excluding
interest) and the effect of asset ceiling (if any, excluding interest) are recognised in OCI.

Earnings per share:

Basic earnings per share are calculated by dividing the net profit for the year attributable to
equity shareholders by the weighted average number of equity shares outstanding during the
period. Earnings considered in ascertaining the Company’s earnings per share is the net profit
for the period after deducting preference dividends and any attributable tax thereto for the
period. The weighted average number of equity shares outstanding during the period and for
all periods presented is adjusted for events, such as bonus shares, other than the conversion
of potential equity shares that have changed the number of equity shares outstanding, without
a corresponding change in resources.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period
attributable to equity shareholders and the weighted average number of shares outstanding
during the period is adjusted for the effects of all dilutive potential equity shares.