Note 2 Material accounting policy information:

A. Basis of preparation of Financial Statements:

(I) StatementofCompliance

These financial statements of the Company have been prepared in accordance with the Indian Accounting
Standards (hereinafter referred to as the 'Ind AS') as per the Companies (Indian Accounting Standards) Rules,
2015 (as amended) notified under Section 133 of Companies Act, 2013, (the 'Act') and other relevant provisions
oftheActand Rules thereunder.

These financial statements were authorised for issue in accordance with a resolution of the Board of
Directors in it's meeting held on May 09,2026.

The accounting policies are applied consistently to all the periods presented in the financial statements. The
financial statements have been prepared on accrual and historical cost basis with the exception of certain
financial assets and liabilities including derivative instruments which have been measured at fair value.

(ii) Current and non-current Classification

The Company presents assets and liabilities in the balance sheet based on current/ non-current
classification.

An asset is treated as current when it is:

• Expected to be realised or intended to be sold or consumed in normal operating cycle

• Held primarilyforthe purposeoftrading

• Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least
twelve months afterthe reporting period

All other assets are classified as non-current.

A liability is current when:

• It is expected to be settled in normal operating cycle

• It is held primarilyforthe purpose oftrading

• There is no unconditional right to defer the settlement of the liability for at least twelve months after the
reporting period

The Company classifies all other liabilities as non-current.

Deferred taxassets and liabilities are classified as non-current assets and liabilities.

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 identified twelve months as its operating cycle
forthe purpose ofcurrent/ non current classification of assets and liabilities.

(iii) Functional and presentation currency

The financial statements are presented in Indian rupee (INR), which is Company's functional and
presentation currency.

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

(iv) Use of Estimates:

The preparation of financial statement requires management to make critical accounting estimates and
assumptions and exercise judgement, that affect the application of accounting policies and the reported
amounts of assets and liabilities and disclosures of contingent liabilities at the date of these financial
statements and the reported amount of revenue and expenses for the year presented. Actual results may
differ from these estimates. The estimates and underlying assumptions are reviewed on a regular basis.
Revision to accounting estimates are recognised in the financial statements in the period in which the
estimate is revised.

Areas involving critical estimates and judgements are:

1. Estimation of tax expense and liabilities.

2. Impairment/Loss allowances on financial assets such as investments, loans&trade receivables.

3. Estimation of defined benefit obligation.

4. Impairment of non financial asset.

5. Provision forwarranty

(v) Business combination Business combination under common control:

Business combinations involving entities or businesses under common control are accounted for using the
pooling of interest method. Under pooling of interest method, the assets and liabilities of the combining
entities or businesses are reflected at their carrying amounts after making adjustments necessary to
harmonise the accounting policies. The financial information in the financial statements in respect of prior
periods is restated as if the business combination had occurred from the beginning of the preceding period in
the financial statements, irrespective of the actual date of the combination. The identity of the reserves is
preserved in the same form in which they appeared in the financial statements of the transferor and the
difference, if any, between the amount recorded as share capital issued plus any additional consideration in
the form of cash or other assets and the amount of share capital of the transferor is transferred to capital
reserve.

(vi) Non-current assets held for sale and discontinued operations

Non-current assets and disposal groups classified as held for sale are measured at the lower of their carrying
va I ue and fair va I ue less costs to sel I.

Assets and disposal groups are classified as held for sale if their carrying value will be recovered through a sale
transaction rather than through continuing use. This condition is only met when the sale is highly probable
and the asset, or disposal group, is available for immediate sale in its present condition and is marketed for sale
at a price that is reasonable in relation to its current fair value. The Company must also be committed to the
sale, which should be expected to qualify for recognition as a completed sale within one year from the date of
classification.

Where a disposal group represents a separate major line of business or geographical area of operations, or is
part of a single co-ordinated plan to dispose of a separate major line of business or geographical area of
operations, then it is treated as a discontinued operation. The post-tax profit or loss of the discontinued
operation together with the gain or loss recognised on its disposal are disclosed as a single amount in the
statement of profit and loss, with all prior periods being presented on this basis.

B. Property, Plant & Equipments:

(I) Recognition and Measurement

Items of property, plant and equipment are measured at cost of acquisition or construction less accumulated
depreciation and/or accumulated impairment loss, if any.

The cost of an item of property, plant and equipment comprises its purchase price, including import duties
and other non-refundable taxes or levies and any directly attributable cost of bringing the asset to its working
condition for its intended use; any trade discounts and rebates are deducted in arriving at the purchase price.
Borrowing costs directly attributable to the construction of a qualifying asset are capitalised as part of the
cost.Company has valued carrying amount as per I nd AS 16.

Cost of assets not ready for intended use, as on the Balance Sheet date, is shown as capital work in progress.
Advances given towards acquisition offixed assets outstanding at each Balance Sheet date are disclosed as
Other Non-Current Assets.

Carrying value offixed assets is tested for impairment as at the reporting date.

(ii) Subsequent measurement

Subsequent costs are included in assets carrying amount or recognised as a seperate asset 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 seperate asset is
derecognised when replaced. All other repairs and maintenance costs are charged to the Statement of Profit
and Loss as incurred.

(in) Derecognition

An item of property, plant and equipment is derecognised upon disposal or when no future benefits are
expected from its use or disposal. Cains and losses on disposal of an item of property, plant and equipment are
determined by comparing the proceeds from disposal with the carrying amount of property, plant and
equipment, and are recognised in the statement of profit and loss.

(iv) Depreciation methods and estimated useful lives

Depreciation on leasehold land has been provided at equal annual installments so as to write off the cost
thereof completely two years beforethetermination date ofthe lease.

Property, Plant & Equipment are stated at cost less accumulated depreciation thereon. The Company provides
depreciation on pro-rata basis using straight line method from the date on which asset is acquired/ready for
intended use. Depreciation has been provided as per Schedule II of the Companies Act, 2013 considering
useful life ofthe asset. The tangible fixed assets for which useful life is different than the one prescribed in the

The Company measures the lease liability at the present value of the lease payments that are not paid at the
commencement date of the lease. The lease payments are discounted using the interest rate implicit in the
lease, if that rate can be readily determined. If that rate cannot be readily determined, the Company uses
incremental borrowing rate. For short-term and low value leases, the Company recognises the lease payments
as an operating expense on a straight-line basis over the lease term.

E. Cash and Cash Equivalents

Cash and cash equivalent in the balance sheet comprises of cash at bank and on hand and shortterm deposit with
an original maturity of 3 months or less, which are subject to an insignificant risk of changes in value. For the
purpose of presentation in the statement of cash flows, cash and cash equivalents consist of cash and short term
deposits as defined above, net of outstanding bank overdraft as they are considered an integral part of the
company's cash management.

F. Inventories

Raw material, stores, work in progress and finsihed goods are valued at lower of cost or net realisable value. Cost of
raw materials and components is arrived on a moving weighted average basis. Cost ofwork-in-progress (including
made in components) and finished goods comprises the moving weighted average rates of raw materials and
components, direct labour and includes appropriate allocation of works overheads. Cost of inventories also
include all other costs incurred in bringing the inventories to their present location and condition.

Materials in transit are valued at cost to date.

Net realisable 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.

G. Borrowingsand borrowing costs

Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently
measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption
amount is recognised in the statement of profit & loss over the period of borrowings using effective interest
method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the
extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the
drawdown occurs.

Borrowings are removed from balance sheet when obligation specified in the contract is discharged, cancelled or
expired. The difference between the carrying amount of a financial liability that has been extinguished or
transferred to another party and the consideration paid, including any non cash assets transferred or liabilities
assumed, is recognised in the statement of profit and loss.

Borrowings are classified as current Borrowings unless the company has an unconditional right to defer
settlement of the liability for at Ieastl2 monthsafterthe reporting period.

Borrowing costs consist of interest and transactions costs incurred in connection with the borrowing of funds.
Borrowing costs also include exchange differences to the extent regarded as an adjustment to the borrowing
costs.

Borrowing costs that are attributable to the acquisition or construction of qualifying assets (i.e. an asset that
necessarily takes a substantial period of time to get ready for its intended use) are capitalized as a part of the cost of
such assets. All other borrowing costs are charged to the statement of prof it and loss.

Investment income earned on the temaprory investment of funds for specific borrowings pending their
expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.

H. Financial Instruments:

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or
equity instrument of another entity.

(A) Financial Assets

(i) Recognition and initial measurement

Trade receivables are initially recognised when they are originated. All other financial assets are recognised
when the company becomes a party to the contractual provisions of the instrument. All financial assets
other than those measured subsequently at fair value through profit and loss, are recognised initially at fair
value plus transaction costs that are attributable to the acquisition of the financial asset.However, trade
receivables that do not contain a significant financing component are measured at transaction price.

(ii) Classification and subsequent measurement

Subsequent measurement is determined with reference to the classification of the respective financial
assets. Based on the business model for managing the financial assets and the contractual cash flow
characteristics of the financial asset, the company classifies financial assets as subsequently measured at
amortised cost, fair value through profit and loss or fair value through other comprehensive income.

Financial Assets at Amortised Cost

Afinancial asset is measured at amortised cost if it is held within a business model whose objective is to hold
the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise
on specified dates to cash flows that are solely payments of principal and interest on the principal amount
outstanding.

After initial measurement, such financial assets are subsequently measured at amortized cost using the
Effective Interest rate method (EIR). Amortized cost is calculated by taking into account any discount or
premium and fees or cost that are an integral part of the EIR. The EIR amortization is included in finance
income in the statement of profit & loss. The losses arising from impairment are recognized in the statement
of profit and loss.

Financial Assets Measured at Fair Value through Other Comprehensive Income (FVOCI)

The asset is held within a business model whose objective is achieved by both

• Collecting contractual cash flows and selling financial assets and

• contractual terms of the asset give rise on specified dates to cash flows that are SPPI on the principal
amount outstanding

After initial recognition, these assets are subsequently measured at Fair Value. Interest Income under
Effective Interest Rate method, foreign exchange gains and losses and impairment losses are recognized in
the statement of profitand Loss. Other netgainsand lossesare recognized in OCI.

Financial Assets Measured at Fair Value through profitand loss

Financial asset not measured at amortised cost or at fair value through OCI is carried at FVTPL.

Equity Instruments

"All Equity investments within the scope of Ind AS 109 are measured at Fair Value except for equity
investment in subsidiary andjoint venture are recognized at cost as per Ind AS 27. Such equity instruments
which are held for trading are classified as FVTPL. For all other such equity instruments, the company
decides to classify the same either as FVOCI or FVTPL. The company makes such election on an instrument
by instrument basis.The classification is made on initial recognition and is irrevocable.

For Equity instruments classified as FVOCI, all fair value changes in the instrument excluding dividends are
recognized in OCI. Dividends on such equity instruments are recognized in the statement of Profit orloss."
Equity Instruments included within the FVTPL category are measured at Fair Value with all changes
recognised in Statement of Profit and Loss. Dividends on such equity instruments are recognized in the
statement of Profit or loss.

All other equity investmentsarefairvaluedthrough profitand loss.

(iii) De-recognition of Financial Assets:

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is
primarily derecognised when:

• The rights to receive cash flows from the asset have expired, or

• The company has transferred its rights to receive cash flows from the asset or has assumed an obligation to
pay the received cash flows in full without material delay to a third party under a ‘pass-through’
arrangement;and either

(a) the company has transferred substantially all the risks and rewards ofthe asset, or

(b) the company has neither transferred nor retained substantially all the risks and rewards ofthe asset, but has
transferred control ofthe asset.

On de-recognition, any gains or losses on all debt instruments (other than debt instruments measured at FVOCI)
and equity instruments (measured at FVTPL) are recognised in the statement of Profit and Loss. Cains and losses
in respect of debt instrument measured at FVOCI and that are accumulated in OCI are reclassified to Profit and
Loss on de-recognition. Cains or losses on equity instruments measured at FVOCI that are recognised and
accumulated in OCI are not reclassified to Profit or Loss on derecognition.

(B) Financial Liabilities

Financial liabilities and equity instruments issued by the Company are classified according to the substance of the
contractual arrangements entered into and the definitions of afinancial liability and an equity instrument.

(i) Recognition and Initial Measurement

Financial liabilities are initially recognized when the company becomes a party to the contractual provisions
ofthe instrument. Financial Liability is initially measured at fair value plus, for an item not at fair value through
profitand loss, net of transaction costs that are directly attributable to its acquisition or issue.

(ii) Classification and Subsequent Measurement

The measurement of financial liabilities depends on their classification, as described below:

Financial liabilitiesatfairvaluethrough Profit or Loss (FVTPL)

Financial liabilities at FVTPL include financial liabilities held for trading and financial liabilities designated
upon initial recognition as at FVTPL. Financial Liabilities at FVTPL are measured at fair value and changes
therein, including any interest expense, are recognised in Statement of Profitand Loss.

Financial liabilities at amortised cost

After initial recognition, financial liabilities other than those which are classified as FVTPL are subsequently
measured at amortised cost using the EIR method. Amortised cost is calculated by taking into account any
discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation
is included as finance costs in the Statement of Profit and Loss.

(in) De-recognition of Financial Liabilities

Financial liabilities are de-recognised when the obligation specified in the contract is discharged, cancelled
or expired. When an existing financial liability is replaced by another 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 de-recognition of the original liability and recognition of a new liability. The
difference in the respective carrying amounts is recognised in the Statement of Profit and Loss.

(iv) 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 recognised amounts and there is an intention to settle on a net basis or
realise the asset and settle the liabilitysimultaneously.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 counterparty.

. Revenue recognition:

Revenue is recognised upon transfer of control of promised goods or services to customers in an amount that
reflects the consideration which the Company expects to receive in exchange for those goods or services.

Revenue from sale of manufactured goods and traded goods

The Company derives revenues primarily from sale of manufactured goods and traded goods.

Revenue is recognized on satisfaction of performance obligation upon transfer of control of promised products or
services to customers or delivered to a carrier for export sale is measured at the amount of transaction price (net of
variable consideration) alloted to that performance obligation. Transaction price is amount that reflects the
consideration the Company expects to receive in exchange for those products or services. Revenue excludes taxes
collectedfrom customerson behalfofthegovernment.

Amount received as Advance from customers towards sale of goods are classified as Contract Liabilities. The
company’s right to consideration in exchange for goods or services that the company has transferred to the
customer are classified as contract assets.

The Company has adopted Ind AS 115 Revenue from contracts with customers, with effect from April 1,2018. Ind AS
115 establishes principlesfor reporting information aboutthe nature,amount,timing and uncertainty of revenues
and cash flowsarising from the contracts with its customers and replaces Ind AS 18 “Revenue” for entities to whom
Ind AS is applicable.The comparative amounts of revenue and the corresponding contract assets/ liabilities have
not been retrospectively adjusted. The effect on adoption of lnd-ASH5 was insignificant.

Rendering of services

Income from services are recognized as and when the services are rendered.

Export Benefits

The benefit accrued under the Duty Drawback, Merchandise Export Incentive Scheme and other schemes as per
the Import and Export Policy in respect of exports made under the said schemes is included as 'Export Incentives'
underthe head 'Otheroperating revenue'.

Interest Income

Interest income from debt instruments is recognised using the EIR method or proportionate basis.The effective
interest rate is the rate that exactly discounts the estimated future cash receipts over the expected life of the
financial asset to the gross carrying amount of the financial asset. When calculating the effective interest rate, the
company estimates the expected cash flows by considering all the contractual terms of the financial instrument. (
for example prepayment, extension, call and similar options) but does not consider the expected credit losses.
Dividends

Revenue is recognised when the company’s right to receive the payment is established, which is generally when
shareholders approve the dividend.

I. Foreign currency transactions

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 recognized under other operating income or other
expenses in the statement of profit and loss on Net basis. Exchange difference arising on the settlement of

monetary items at rates different from those at which they were initially recorded during theyear, or reported in
previous financial statements, are recognised as income or expenses in theyear in which they arise.

K. Employee Benefits

(i) Short-term obligations

Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly
within 12 months after the end of the period in which the employees render the related service are
recognised in respect of employees’ services up to the end of the reporting period and are measured at the
amounts expected to be paid when the liabilities are settled.

(ii) Other long-term employee benefit obligations

The liabilities for earned leave and sick leave that are not expected to be settled wholly within 12 months are
measured as the present value of expected future payments to be made in respect of services provided by
employees up to the end of the reporting period using the projected unit credit method. The benefits are
discounted using the market yields at the end of the reporting period that have terms approximating to the
terms of the related obligation. Remeasurements as a result of experience adjustments and changes in
actuarial assumptionsare recognised intheStatementof Profitand Loss.

(iii) Post-employment obligations

The Company operates the following post-employment schemes:

(a) defined benefit plans such as gratuity; and

(b) defined contribution plans such as provident fund.

Defined Benefit Plans -Gratuity Obligations

The liability or asset recognised in the balance sheet in respect of defined benefit pension and gratuity plans
is the present value of the defined benefit obligation at the end of the reporting period less the fair value of
plan assets. The defined benefit obligation is calculated annually by actuaries using the projected unit credit
method.

The present value of the defined benefit obligation is determined by discounting the estimated future cash
outflows by reference to market yields at the end of the reporting period on government bonds that have
terms approximating to the terms of the related obligation.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit
obligation and the fair value of plan assets. This cost is included in employee benefit expense in the
Statement of Profitand Loss.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial
assumptionsare recognised in the period in which they occur, directly in other comprehensive income. They
are included in retained earnings in the statement of changes in equity and in the balance sheet.

Defined contribution plan

The Company pays provident fund contributions to publicly administered provident funds as per local
regulations. The Company has no further payment obligations once the contributions have been paid. The
contributions are accounted for as defined contributions are recognised as employee benefit expense when
theyaredue.

L. Segment Reporting policies

For the purposes of presenting segment information, the activities of the company are divided into operating
segments in accordance with Ind AS 108 (Operating Segments). Segments are identified having regard to the
dominant source and nature of risks and returns and internal organisation and management structure. Each
segment represent strategic business unit. Revenues and expenses have been identified to the segments based
on their relationship to the business activity of the segment. Income/ Expenses relating to the enterprise as a
whole and not allocable on a reasonable basis to business segments are reflected as unallocated corporate
income/expenses. Inter-segmenttransfersareat priceswhich aregenerally market led.

M. Impairment

(I) Impairment of financial assets

The Company measures the expected credit loss associated with its assets based on historical observed
default rate, industry practices and the business environment in which the entity operates or any other
appropriate basis. The impairment methodology applied depends on whether there has been a significant
increase in credit risk. At every reporting date, historical observed default rates are updated and changes in
theforward looking estimatesareanalysed.

(ii) Impairmentof non-f inancial assets

The Company’s non-financial assets, other than inventories and deferred tax assets, are reviewed at each
reporting date to determine whether there is any indication of impairment. If any such indication exists, then
the asset’s recoverable amount is estimated. 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 ofan asset’s
fair value less costs of disposal and value in use.

N. Derivative financial instruments

Derivative financial instruments such as forward contracts are re-measured at their fairvalue on reporting date
with changes in fairvalue recognised in the Statement of Profit and Loss in the period when they arise.

O. Income Tax:

The income tax expense or credit for the period is the tax payable on the current year’s taxable income based on
the applicable income tax rate adjusted by changes in deferred tax assets and liabilities attributable to temporary
differences and to unused tax losses.

The current income tax charge is calculated based on the tax laws enacted or substantively enacted at the
reporting date. Current tax comprises of expected tax payable or receivable on taxable income/loss for theyear or
any adjustment or receivable in respect of previous year. Management periodically evaluates positions taken in
tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes
provisions where appropriate based on amounts expected to be paid to the tax authorities.

Deferred income tax is provided in full, using the Balance Sheet method, on temporary differences arising
between the tax bases of assets and liabilities and their carrying amounts in the financial statements. However
deferred tax liabilities are not recognised if they arise from the initial recognition of goodwill. Deferred income tax
is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the
reporting date and are expected to apply to the Company when the related deferred income tax asset is realised or
the deferred income 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. Current tax assets and tax

liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net
basis, or to realise the asset and settle the liability simultaneously.

Current and deferred tax is recognized in Statement of Profit and Loss, except to the extent that it relates to the
items recognized in OCI or directly in equity. In this case, the tax is also recognised in OCI or directly in equity,
respectively.