1.01 Statement of Compliance with Ind AS

These standalone financial statements have been prepared in accordance with the Indian Accounting
Standards (referred to as “Ind AS”) as prescribed under section 133 of the Companies Act, 2013 read with the
Companies (Indian Accounting Standards) Rules as amended from time to time.

1.02 Basis of Preparation and Presentation of Financial Statements

These Financial Statements (''Financial Statements'') of the Company have been prepared in accordance with
the Indian Accounting Standards (hereinafter referred to as the ''Ind AS'') as notified by Ministry of Corporate
Affairs (''MCA'') under Section 133 of the Companies Act, 2013 (''the Act'') read with the Companies (Indian
Accounting Standards) Rules, 2015, as amended and other relevant provisions of the Act. In addition, the
guidance notes/announcements issued by the Institute of Chartered Accountants of India (ICAI) are also
applied except where compliance with other statutory promulgation requires a different treatment.

The Ind AS Financial Statements comprise of the Balance Sheet as at year ended 31st March 2026, the
Statement of profit and loss (including Other Comprehensive Income) for the year ended 31st March 2026,
statement of cash flows for the year ended 31st March 2026 and Statement of changes in equity for the year
ended on that date, and accounting policies and other explanatory information.

The Financial Statements were approved by the Company''s Board of Directors and authorized for issue on
27th May 2026.

As required by Division II issued under Schedule III of the act, the company has presented the assets and
liabilities in the Balance Sheet in the order of liquidity.

1.03 Basis of Measurement

The Financial Statements have been prepared on going concern basis in accordance with accounting principles
generally accepted in India to comply with Indian Accounting Standards (Ind AS) prescribed in Companies Act
2013.

These statements are prepared under historical cost convention on accrual basis and also certain financial
assets and financial liabilities which are measured at fair values at the end of each reporting period as
mentioned below: -

• net defined benefit liability measured at fair value of plan assets less the present value of the defined
benefit obligation (refer note 52).

• Certain financial assets and liabilities

The Company has an established control framework with respect to the measurement of fair values.

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.

In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the
asset or liability if market participants take those characteristics into account when pricing the asset or
liability at the measurement date. Fair value for measurement and/or disclosure purposes in these financial
statements is determined on this basis.

Fair value measurements under Ind AS are categorized as below based on the degree to which the inputs to
the fair value measurements are observable and the significance of the inputs to the fair value measurement
in its entirety:

• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the
Company can access at measurement date.

• Level 2 inputs are inputs, other than quoted prices included in level 1, that are observable for the asset or
liability, either directly or indirectly: and

• Level 3 inputs are unobservable inputs for the valuation of assets/liabilities.

When measuring the fair value of an asset or a liability, the Company uses observable market data as far as
possible. If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair
value hierarchy, then the fair value measurement is categorized in its entirety in the same level of the fair
value hierarchy as the lowest level input that is significant to the entire measurement.

Current/ non-current classification

An asset is treated as current when it is: Expected to be realized or intended to be sold or consumed in normal
operating cycle.

• Held primarily for the purpose of trading.

• Expected to be realized within twelve months after the reporting period, or

• Cash or cash equivalent unless 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.

A liability is current when: It is expected to be settled in normal operating cycle.

• It is held primarily for the purpose of trading.

• It is due to be settled within twelve months after the reporting period, or

• 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 tax assets and liabilities are classified as
non-current assets and liabilities. The operating cycle is the time between the acquisition of assets for
processing and their realisation in cash and cash equivalents. The Company has identified twelve months as
its operating cycle.

Operating cycle

Operating cycle is the time between the acquisition of assets for processing and their realization in cash or
cash equivalents. The Company''s normal operating cycle is twelve months.

Statement of Cash Flows

The statement of cash flows has been prepared under indirect method as explained in Ind AS- 7 Statement of
Cash Flows. Cash flows are reported using the indirect method, whereby profit after tax is adjusted for the
effects of transactions of a non-cash nature, any deferrals, or accruals of past or future operating cash receipts
or payments and item of income or expenses associated with investing or financing cash flows. The cash flows
are segregated into operating, investing, and financing activities.

Functional and Presentation Currency

These financial statements are presented in Indian Rupees (INR), which is also the functional currency of the
Company. All amounts have been rounded to the nearest lacs up to two decimal places, unless otherwise
indicated. Per share data are presented in Indian Rupees to two decimals places.

The functional currency is the currency of the primary economic environment in which the Company operates
and is normally the currency in which the Company primarily generates and expends cash.

1.04 Use of Key Accounting Estimates and Judgements

The preparation of the Financial Statements in conformity with Ind AS requires the Management to make
estimates, judgements and assumptions that affect the application of accounting policies and the reported
amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities.

The principal accounting estimates have been described under the relevant income /expense and/ or assets/
liability item in the Financial Statements. The Management believes that the estimates used in the preparation
of these Financial Statements are prudent and reasonable. Actual results could differ from these estimates.
Continuous evaluation is done on the estimation and judgments based on historical experience and other
factors, including expectations of future events that are believed to be reasonable.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognized in the period in which the estimate is revised if the revision affects only the period
of the revision and future periods if the revision affects both current and future periods. Revisions to
accounting estimates are recognized in the period in which the estimate is revised if the revision affects only
that period, or in the period of the revision and future periods if the revision affects both current and future
periods.

Information about critical judgments in applying accounting policies, as well as estimates and assumptions
that have the most significant effect to the carrying amounts of assets and liabilities within the next financial
year, is as follows:

i) Judgments

• Lease term: whether the Company is reasonably certain to exercise extension options: The
Company has an option to extend the term of lease at the end of lock-in period in most of its
leases. The Company makes a judgement by considering future economic incentives for
exercising the extension option in order to ensure reasonable certainty.

ii) Assumptions and estimation uncertainties

• Note 52: measurement of defined benefit obligations: key actuarial assumptions

• Note19 & 32: recognition and measurement of provisions and contingencies: key
assumptions about the likelihood and magnitude of an outflow of resources.

• Note 2 and 2B: Useful lives of property, plant, and equipment: The lives are based on
historical experience with similar assets as well as anticipation of future events, which may
impact their life, such as changes in technology. The estimated useful life is reviewed at least
annually.

1.05 Recent Accounting Developments

A. Application of newly amended Standards
Amendments to Ind AS 107 - Financial Instruments

Ind AS 7, Statement of Cash Flows and Ind AS 107, Financial Instruments: Disclosures, applicable w.e.f. April
1, 2025 - The amendment in Ind AS 7 requires to inform users of financial statements of the existence of
supplier finance arrangements and explain the nature of the arrangements, the carrying amount of liabilities
and the range of payment due dates. Ind AS 107 has been amended to add supplier finance arrangements as a
factor that may cause concentration of liquidity risk. The Company has reviewed the amendment and based
on its valuation has determined that it does not have any significant impact in its financial statements.
Amendments to Ind AS 1 - Presentation of Financial Statements

Ind AS 1, Presentation of Financial Statements, applicable w.e.f. April 1, 2025 - The amendment relates to
classification of liabilities as current or non-current and non-current liabilities with covenants. In the context
of classifying a liability as current, it removes the requirement of existence of a right to defer settlement for at
least 12 months after the reporting date and instead requires that the said right should exist on the reporting
date and have substance. The amendment also introduces guidance on classification of liabilities with
covenants. The Company has no impact of these amendments in its classification criteria of current and non¬
current liabilities.

Amendment to Ind AS 12- Income Taxes

The Company has applied mandatory exception of recognizing and disclosing information about deferred tax
assets and liabilities related to Pillar Two income taxes as required by Ind AS 12 (as amended).

Amendment to Ind AS 21- The Effects of Changes in Foreign Exchange Rates

In May 2025, MCA notified amendments to Ind AS 21 - The Effects of Changes in Foreign Exchange Rates,

applicable w.e.f. April 1, 2025. The Company has reviewed the amendment and based on its evaluation has

determined that it does not have any significant impact in its financial statements.

B. Standards notified but not yet effective.

There are no amendments issued after the reporting date which are not yet effective up to the reporting date.

The Company has not adopted any amendments that have been notified earlier but are not yet effective.

1.06 Exceptional items

• An item of income or expense which by its size, nature and incidence requires disclosure in order to
improve an understanding of the performance of the Company is treated as an exceptional item and
disclosed as such in the financial statements.

1.07 Property, Plant and Equipment

• The Company has elected to continue with carrying value of all its property, plant, and equipment as
recognized in the Financial Statements as at date of transition to Ind AS and use the same as its deemed
cost as at the date of transition.

Property, plant, and equipment are stated at their cost of acquisition less accumulated depreciation
and impairment (if any). The cost comprises the purchase price, borrowing cost and attributable cost
of bringing the asset to its working condition for its intended use. When significant parts of property,
plant and equipment are required to be replaced at intervals, the Company depreciates them,
separately based on their specific useful lives.

Cost of an item of property, plant and equipment comprises its purchase price, including import duties
and non-refundable purchase taxes, after deducting trade discounts and rebates, any directly
attributable cost of bringing the item to its working condition for its intended use and estimated costs
of dismantling and removing the item and restoring the site on which it is located. The cost of a self-
constructed item of property, plant and equipment comprises the cost of materials and direct labour,
any other costs directly attributable to bringing the item to working condition for its intended use, and
estimated costs of dismantling and removing the item and restoring the site on which it is located. Cost
includes, for qualifying assets, borrowing costs capitalized in accordance with the Company''s
accounting policy. Such properties are classified to the appropriate categories of property, plant, and
equipment when completed and ready for intended use. Depreciation of these assets, on the same basis
as other property assets, commences when the assets are ready for their intended use.

The cost of an item of property, plant and equipment shall be recognized 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.

• The land used for the factory/office building is stated at historical cost less any accumulated impairment
losses.

• Gains or losses arising on retirement or sale/disposal of property, plant and equipment are recognized in
the statement of Profit and Loss.

• The residual values, useful lives, and method of depreciation of property, plant and equipment are
reviewed at each financial year end and adjusted prospectively, if appropriate.

1.08 Depreciation & Amortization and Useful Life

• Depreciation on Property, Plant and Equipment is provided on Written Down Value Method and computed
on the basis of the useful life prescribed in Schedule II to the Companies Act, 2013 (Act) from the date the
asset is ready to put to use. Freehold land is not depreciated.

• The residual value of 5% of Original Cost/Deemed Cost is considered for the purpose of calculating
Depreciation rates. The residual values, useful lives and method of depreciation are reviewed at the end
of each financial year.

• Depreciation is provided on a pro-rata basis in the year in which the assets are put to use.

• The Company has used rates to provide depreciation which coincide with the rates indicated in schedule
II of the Companies Act 2013 on its fixed assets.

• Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted
if appropriate. Based on technical evaluation and consequent advice, the management believes that its
estimates of useful lives given below best represent the period over which management expects to use
these assets.

1.09 Capital Work in Progress and Intangible Assets under Development

• Property, Plant and Equipment which are not ready for intended use as on the date of Balance Sheet are
disclosed as “Capital Work-in-Progress.” These are carried at cost, comprising direct cost, related
incidental expenses and attributable interest.

• Intangible Assets which are not ready for intended use as on the date of Balance Sheet are disclosed as
“Intangible Assets under Development.” These are carried at cost, comprising direct cost, related
incidental expenses and attributable interest.

• Advances paid towards the acquisition of property, plant and equipment and Intangible Assets
outstanding at each balance sheet date are classified as capital advances under other non-current assets.

1.10 Impairment of Non-Financial Assets

At the end of each reporting period, the Company reviews the carrying amounts of its 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). For impairment testing, assets that do not generate independent cash inflows are grouped
together into cash-generating units. Each cash-generating unit represents the smallest group of assets that
generates cash inflows that are largely independent of the cash inflows of other assets or cash-generating
units. 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.

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 (or
cash-generating unit) 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 recognized immediately in profit or 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 recognized for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is
recognized immediately in profit or loss.

1.11 Inventories

Inventories are valued at cost or net realizable value, whichever is lower. The cost in respect of the various
items of inventory is computed as under:

In the case of raw materials which are not ordinarily interchangeable at Standard Cost on Specific
Identification of cost basis, in case of raw materials which are ordinarily interchangeable at FIFO method
of cost i.e., Cost plus direct expenses. The cost includes cost of purchase and other costs incurred in
bringing the inventories to their present location and condition.

In the case of stores and spares at Standard Cost on a weighted average cost basis i.e., Cost plus direct
expenses. The cost includes cost of purchase and other costs incurred in bringing the inventories to their
present location and condition.

In the case of work in progress at raw material cost plus conversion costs depending upon the stage of
completion.

In the case of finished goods at raw material cost plus conversion costs, packing cost, nonrecoverable
indirect taxes (if applicable) and other overheads incurred to bring the goods to their present location and
condition.

In the case of byproducts at estimated realizable value Net realizable value is the estimated selling price
in ordinary course of business, less estimated costs of completion and the estimated costs necessary to
make the sale.

1.12 Assets held for Sale

Non-current assets or disposal groups comprising of assets and liabilities are classified as ''held for sale'' when
all of the following criteria''s are met:

(i) The decision has been made to sell.

(ii) The assets are available for immediate sale in their present condition.

(iii) The assets are being actively marketed and

(iv) Sales have been agreed or are expected to be concluded within 12 months of the Balance Sheet
date.

Subsequently, such non-current assets and disposal groups classified as held for sale are measured at the
lower of it carrying value and fair value less costs of disposal. Non-current assets held for sale are not
depreciated or amortized.

1.13 Investments in Subsidiaries & Joint Ventures

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 recognized in the Statement of Profit and Loss.

1.14 Revenue Recognition

• Revenue is recognized based on the nature of activity when consideration can be reasonably measured
and recovered with reasonable certainty. The Company applies revenue recognition criteria to each of the
nature of revenue transactions as set out below:

a) Revenue from Contracts with Customers

Pursuant to the application of Ind AS 115 - ''Revenue from Contracts with Customers'' issued on
01/04/2018, the Company has applied following accounting policy for revenue recognition:

The Company recognizes revenue from contracts with customers when it satisfies a performance
obligation by transferring promised goods or service to a customer. The revenue is recognized to the
extent of transaction price allocated to the performance obligation satisfied. Performance obligation
is satisfied over time when the transfer of control of goods or service to a customer is done over time
and in other cases, performance obligation is satisfied at a point in time.

For performance obligation to satisfy overtime, the revenue recognition is done by measuring the
progress towards complete satisfaction of performance obligation. The progress is measured in terms
of the actual cost incurred to date, to the total estimated cost attributable to the performance
obligation. Transaction price is the amount of consideration to which the Company expects to be
entitled in exchange for transferring goods or services to a customer excluding amounts collected on
behalf of a third party.

Revenue is measured at the fair value of the consideration received /receivable, taking into account
contractually defined terms of payment, and excluding taxes or duties collected on behalf of the
government and is net of rebates and discounts.

The Company assesses its revenue arrangements against specific criteria to determine if it is acting as
principal or agent. The Company has concluded that it is acting as a principal in all of its revenue
arrangements.

Revenue is recognized in the income statement to the extent that it is probable that the economic
benefits will flow to the Company and the revenue and costs, if applicable, can be measured reliably.
The Company has applied five step model as per Ind AS 115 ''Revenue from contracts with customers''
to recognize revenue in the Financial Statements. The Company satisfies a performance obligation and
recognizes revenue over time, if one of the following criteria is met:

- The customer simultaneously receives and consumes the benefits provided by the Company''s
performance as the Company perform: or

- The Company''s performance creates or enhances an asset that the customer controls as the asset
is created or enhanced: or

- The Company''s performance does not create an asset with an alternative use to the Company, and
the entity has an enforceable right to payments for performance completed to date.

Revenue is recognized either at a point of time or over a period of time based on various conditions
included in the contracts with customers.

b) Sale of Goods

The Company recognizes revenue in relation to sale of products when it satisfies a performance
obligation in accordance with the contract with the customer. This is achieved when control of the
product has been transferred to the customer, which is generally determined when legal title, physical
possession, risk of obsolescence, loss and rewards of ownership pass to the customer and the Company
has the present right to payment, all of which occurs at a point in time upon shipment or delivery of
the product.

The Company considers the terms of the contract in determining the transaction price. The transaction
price is based upon the amount the Company expects to be entitled to in exchange for transferring of
promised goods and services to the customer. Transaction price excludes taxes and duties collected
on behalf of the government. Invoices are issued according to contractual terms and are usually
payable as per the credit period agreed with the customer.

c) Rendering of Services

Revenue from providing services is recognized in the accounting period in which the services are
rendered. Invoices are issued according to contractual terms and are usually payable as per the credit
period agreed with the customer.

d) Other Operating Income

Export benefits under Duty Drawback fits and Remission of Duties and Taxes on Export Products
Scheme (RoDTEP) are accounted for as other operating revenue on accrual basis when export of goods
takes place, where there is a reasonable assurance that the benefit will be received and the Company
will comply with all the attached conditions.

e) Dividend and Interest Income

Dividend income from investments is recognized 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).

Interest in income from a financial asset is recognized when it is probable that the 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 asset to that asset''s net carrying amount on initial recognition.

1.15 Government Grants

• Capital Grants

- In the case of depreciable assets, the cost of the assets is shown at Net value.

- Government grants shall be recognized in Profit or Loss on a systematic basis over the periods of the useful
life of the related asset.

• Revenue Grants

- Government grants are recognized where there is reasonable assurance that the grant will be received,
and all attached conditions will be compiled with. Government grants are recognized in profit or loss on a
systematic basis over the periods in which the entire recognizes as expenses the related costs for which
the grants are intended to compensate.

1.16 Employee Benefits

• Short-term employee benefits

All employee benefits falling due within twelve months of the end of the period in which the employees
render the related services are classified as short-term employee benefits, which include benefits like
salaries, wages, short term compensated absences, performance incentives, etc. and are recognized as
expenses in the period in which the employee renders the related service and measured on an
undiscounted basis. A liability is recognized for the amount expected to be paid e.g., salaries, wages and
bonus, if the Company has a present legal or constructive obligation to pay this amount as a result of past
service provided by the employee, and the amount of obligation can be estimated reliably.

• Post-employment benefits

Post-employment benefit plans are classified into defined benefits plans and defined contribution plans
as under:

Defined contribution plan

A defined contribution plan is a post-employment benefit plan under which an entity pays specified
contributions to a separate entity and will have no legal or constructive obligation to pay further amounts.
The Company''s contribution is recognized as an expense in the Statement of Profit and Loss during the
period in which the employee renders the related service.

Defined benefit plans

A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. Gratuity
is a defined benefit plan. The Company has an obligation towards gratuity, a defined benefit retirement
plan covering eligible employees. The plan provides for a lump sum payment to vested employees at
retirement, death while in employment or on termination of employment of an amount based on the
respective employee''s salary and the tenure of employment. The Company''s net obligation in respect of
gratuity is calculated separately by estimating the amount of future benefit that employees have earned in
the current and prior periods and discounting that amount. The calculation of defined benefit obligation
is performed annually by a qualified actuary using the projected unit credit method.

1.17 Borrowing Cost

• Borrowing costs that are attributable to the acquisition and/or construction of qualifying assets are
capitalized as part of the cost of such assets during the period of time that it is necessary to complete and
prepare the assets for its intended use or sale. A qualifying asset is one that necessarily takes a substantial
period of time to get ready for its intended use. All other borrowing costs are charged to the Statement of
Profit and Loss.

1.18 Earnings per Share

• Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to
equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares
outstanding during the period. The weighted-average number of equity shares outstanding during the
period is adjusted for events including a bonus issue.

• 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 are
adjusted for the effects of all dilutive potential equity shares.

1.19 Accounting for Taxes on Income
Income taxes

The income tax expense comprises of current and deferred income tax. Income tax is recognized in the
statement of profit and loss, except to the extent that it relates to items recognized in the other comprehensive
income or directly in equity, in which case the related income tax is also recognized accordingly. The Company
has determined that interest and penalties related to income taxes, including uncertain tax treatments, do not
meet the definition of income taxes, and therefore accounted for them under Ind AS 37 Provisions, Contingent
Liabilities and Contingent Assets

Current tax

Current income tax for the current and prior periods is measured at the amount expected to be recovered
from or paid to the taxation authorities based on the taxable income for the period. The tax rates and tax laws
used to compute the current tax amounts are those that are enacted or substantively enacted as at the
reporting date and applicable for the period.

While determining the tax provisions, the Company assesses whether each uncertain tax position is to be
considered separately or together with one or more uncertain tax positions depending upon the nature and
circumstances of each uncertain tax position. The Company offsets current tax assets and current tax
liabilities, where it has a legally enforceable right to set off the recognized amounts and where it intends either
to settle on a net basis, or to realise the asset and liability simultaneously.

Deferred tax

Deferred tax assets and liabilities are recognized for the future tax consequences of temporary differences
between the carrying values of assets and liabilities and their respective tax bases.

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 realized, based on tax rates (and tax laws) that have been enacted or
substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and
assets reflects the tax consequence that would follow from the manner in which the Company expects, at the
end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Deferred tax assets are recognized to the extent that it is probable that future taxable income will be available
against which the deductible temporary difference could be utilized. Such deferred tax assets and liabilities
are not recognized if the temporary difference arises from the initial recognition of assets and liabilities in a
transaction that affects neither the taxable profit nor the accounting profit.

Temporary differences in relation to a right-of-use asset and a lease liability for a specific lease are regarded
as a net package (the lease) for the purpose of recognizing deferred tax.

The carrying amount of deferred tax assets 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 the
asset to be recovered. Unrecognized deferred tax assets are reassessed at each reporting and recognized to
the extent that it has become probable that future taxable profits will be available against which they can be
used.

The Company offsets deferred tax assets and deferred tax liabilities if it has a legally enforceable right and
these relate to taxes on income levied by the same governing taxation laws

3 MATERIAL ACCOUNTING POLICIES

3.01 Basis of Preparation

These Financial Statements (''Financial Statements'') of the Company have been prepared in accordance with the
Indian Accounting Standards (hereinafter referred to as the ''Ind AS'') as notified by Ministry of Corporate Affairs
(''MCA'') under Section 133 of the Companies Act, 2013 (''the Act'') read with the Companies (Indian Accounting
Standards) Rules, 2015, as amended and other relevant provisions of the Act. In addition, the guidance
notes/announcements issued by the Institute of Chartered Accountants of India (ICAI) are also applied except
where compliance with other statutory promulgation requires a different treatment.

The Ind AS Financial Statements comprise of the Balance Sheet as at year ended 31st March 2025, the Statement
of profit and loss (including Other Comprehensive Income) for the year ended 31st March 2025, statement of
cash flows for the year ended 31st March 2025 and Statement of changes in equity for the year ended on that
date, and accounting policies and other explanatory information.

The Financial Statements were approved by the Company''s Board of Directors and authorized for issue on 26th
MAY 2025.

As required by Division II issued under Schedule III of the act, the company has presented the assets and liabilities
in the Balance Sheet in the order of liquidity.

3.02 Basis of Measurement

The Financial Statements have been prepared on going concern basis in accordance with accounting principles
generally accepted in India to comply with Indian Accounting Standards (Ind AS) prescribed in Companies Act.

Certain accounting policies and disclosures of the Company require the measurement of fair values, for both
financial and non-financial assets and liabilities. These statements are prepared under historical cost convention
on accrual basis and also certain financial assets and financial liabilities which are measured at fair values at the
end of each reporting period as mentioned in the relevant notes to accounts. The Company has an established
control framework with respect to the measurement of fair values. The valuation team regularly reviews
significant unobservable inputs and valuation adjustments.

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 market participants at the measurement date, regardless of whether that price is directly observable
or estimated using another valuation technique. In estimating 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. Fair value for
measurement and/or disclosure purposes in these financial statements is determined on this basis.

Fair value measurements under Ind AS are categorized as below based on the degree to which the inputs to the
fair value measurements are observable and the significance of the inputs to the fair value measurement in its
entirety:

- Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the
Company can access at measurement date.

- Level 2 inputs are inputs, other than quoted prices included in level 1, that are observable for the asset or
liability, either directly or indirectly: and

- Level 3 inputs are unobservable inputs for the valuation of assets/liabilities.

When measuring the fair value of an asset or a liability, the Company uses observable market data as far as
possible. If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair
value hierarchy, then the fair value measurement is categorized in its entirety in the same level of the fair value
hierarchy as the lowest level input that is significant to the entire measurement.

Further information about the assumptions made in measuring fair values is included in the following notes:
Note - investment property.

Note - share-based payment; and
Note - financial instruments.

The Balance Sheet and Statement of Profit and Loss are prepared and presented in the format prescribed in the
Schedule III to the Companies Act, 2013 ("the Act"). The Statement of cash flows has been prepared and
presented as per the requirements of Ind AS 7 "Statement of Cash flows". The disclosure requirements with
respect to items in the Balance Sheet and Statement of Profit and Loss, as prescribed in the Schedule III to the
Act, are presented by way of notes forming part of the Financial Statements along with the other notes required
to be disclosed under the notified Accounting Standards.

Amounts in the Financial statements are presented in Indian Rupees rounded off in Lacs to two decimal places
as permitted by Schedule III to the Companies Act, 2013 except otherwise stated. Per share data are presented
in Indian Rupees to two decimals places.

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating
cycle. Based on the nature of products and the time between acquisition of assets for processing and their
realization in cash and cash equivalents. The operating Cycle has been taken to be 12 months. Deferred tax
assets and deferred tax liabilities are classified as non-current assets and non-current liabilities, as the case may
be.

3.03 Use of Key Accounting Estimates and Judgements

The preparation of the Financial Statements in conformity with Ind AS requires the Management to make
estimates, judgement and assumptions that affect the application of accounting policies and the reported
amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities. The principal
accounting estimates have been described under the relevant income /expense and / or assets / liability item in
the Financial Statements. The Management believes that the estimates used in the preparation of these
Financial Statements are prudent and reasonable. Actual results could differ from these estimates. Continuous
evaluation is done on the estimation and judgments based on historical experience and other factors, including
expectations of future events that are believed to be reasonable.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates
are recognized in the period in which the estimate is revised if the revision affects only the period of the revision
and future periods if the revision affects both current and future periods. Revisions to accounting estimates are
recognized prospectively.

Information about critical judgments in applying accounting policies, as well as estimates and assumptions that
have the most significant effect to the carrying amounts of assets and liabilities within the next financial year,
are included in the following notes:

- Measurement of defined benefit obligations - Note

- Measurement and likelihood of occurrence of provisions and contingencies - Note

- Recognition of deferred tax assets - Note "

3.04 Recent Accounting Developments

A. Application of newly amended Standards

The Ministry of Corporate Affairs vide notification dated 9 September 2024 and 28 September 2024 notified
the Companies (Indian Accounting Standards) Second Amendment Rules, 2024 and Companies (Indian
Accounting Standards) Third Amendment Rules, 2024, respectively, which amended/ notified certain
accounting standards (see below), and are effective tor annual repoting periods beginning on or after April
01, 2024: Insurance contracts - Ind AS 117; and Lease Liability in Sale and Leaseback -Amendments to Ind AS
116

These amendments did not have any material impact on the amounts recognised in prior periods and are not
expected to significantly affect the current or future periods."

B. Standards notified but not yet effective.

he Ministry of Corporate Affairs (MCA) notified amendments issued the Companies (Indian Accounting
Standards) Amendment Rules, 2025 dated 7 May 2025 which amend following Ind AS as explained below.

(i) Amendment in Ind AS 21 "The Effects of Changes in Foreign Exchange Rates - Lack of Exchangeability The
amendments introduce guidance on assessing whether a currency is exchangeable and on estimating the
spot exchange rate when exchangeability is lacking.

These amendments provide clarity on determining exchange rates in situations where a currency cannot be
freely exchanged, including new disclosure requirements regarding the financial impact, estimation methods,
and associated risks.

The above amendments are effective from annual periods beginning on or after April 1, 2025."

3.05 Property, Plant and Equipment

- The Company has elected to continue with carrying value of all its property, plant, and equipment as recognized
in the Financial Statements as at date of transition to Ind AS and use the same as its deemed cost as at the date
of transition.

- Property, plant, and equipment are stated at their cost of acquisition less accumulated depreciation and
impairment (if any). The cost comprises the purchase price, borrowing cost and attributable cost of bringing the
asset to its working condition for its intended use.

- The land used for the office buildings is stated at cost.

- Gains or losses arising on retirement or disposal of property, plant and equipment are recognized in the
statement of Profit and Loss.

- The residual values, useful lives, and method of depreciation of property, plant and equipment are reviewed
at each financial year end and adjusted prospectively, if appropriate.

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

3.06 Depreciation and Useful Life

- Depreciation on Property, Plant and Equipment is provided on Written Down Value and computed on the basis
of the useful life prescribed in Schedule II to the Companies Act, 2013 (Act) from the date the asset is ready to
put to use.

- Depreciation on office building and investment properties is provided on Written Down value Method and
computed on the basis of the useful life prescribed in Schedule II to the Act from the date the asset is ready to
put to use.

- The residual value of 5% of Original Cost/Deemed Cost is considered for the Purpose of Calculating Depreciation
rates. The residual values, useful lives and method of depreciation are reviewed at the end of each financial
year.

- Depreciation is provided on a pro-rata basis in the year in which the assets are put to use.

- The Company has used rates to provide depreciation which coincide with the rates indicated in schedule II of
the Companies Act 2013 on its fixed assets.

3.07 Capital Work in Progress and Intangible Assets under Development

- Property, Plant and Equipment which are not ready for intended use as on the date of Balance Sheet are
disclosed as "Capital Work-in-Progress."

- Advances paid towards the acquisition of property, plant and equipment outstanding at each balance sheet
date are classified as capital advances under other non-current assets."

3.08 Intangible Assets

~ Intangible assets (Software) are stated at their cost of acquisition less amortization. The cost comprises of
purchase price, borrowing cost, if capitalization criteria are met and directly attributable cost of bringing the
asset to its working condition for the intended use. These are amortized on Straight Line Method (SLM) over the
useful life not exceeding 5 years from the date; the assets are available for use.

3.09 Impairment of Non-Financial Assets

Assessment for impairment is done at each Balance Sheet date as to whether there is any indication that a non¬
financial asset may be impaired. Indefinite life intangibles are subject to a review for impairment annually or
more frequently if events or circumstances indicate that it is necessary. For the purpose of assessing impairment,
the smallest identifiable group of assets that generates cash inflows from continuing use that are largely
independent of the cash inflows from other assets or groups of assets is considered as a cash generating unit.
Goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Company''s
cash-generating units that are expected to benefit from the synergies of the combination, irrespective of
whether other assets or liabilities of the acquiree are assigned to those units.

If any indication of impairment exists, an estimate of the recoverable amount of the individual asset/cash
generating unit is made. Asset/cash generating unit whose carrying value exceeds their recoverable amount are
written down to the recoverable amount by recognizing the impairment loss as an expense in the Statement of
Profit and Loss. The impairment loss is allocated first to reduce the carrying amount of any goodwill (if any)
allocated to the cash generating unit and then to the other assets of the unit, pro rata based on the carrying
amount of each asset in the unit. The recoverable amount is higher of an assets or cash generating unit''s fair
value less costs of disposal and its value in use. Value in use is the present value of estimated future cash flows
expected to arise from the continuing use of an asset or cash generating unit and from its disposal at the end of
its useful life. Assessment is also done at each Balance Sheet date as to whether there is any indication that an
impairment loss recognized for an asset in prior accounting periods may no longer exist or may have decreased,
basis the assessment a reversal of an impairment loss for an asset other than goodwill is recognized in the
Statement of Profit and Loss account."

3.10 Investment Properties

- Investment properties are properties held to earn rentals or for capital appreciation, or both. Investment
properties are measured initially at their cost of acquisition less accumulated depreciation and impairment, if
any. The cost comprises of purchase price, borrowing cost, if capitalization criteria are met and directly
attributable cost of bringing the asset to its working condition for the intended use.

- Subsequent costs are included in the asset''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. All
other repair and maintenance costs are recognized in the Statement of Profit or Loss as incurred.

- An investment property is derecognized on disposal or when the investment property is permanently
withdrawn from use and no future economic benefits are expected from the disposal. Any gain or loss arising
on de-recognition of property is recognized in the statement of Profit and Loss in the same period.

- Investment properties are subsequently measured at cost less accumulated depreciation and accumulated
impairment losses, if any. Depreciation on investment properties is provided on the Written Down Value
method, computed on the basis of useful lives prescribed in Schedule II to the Act: The residual value, useful life
and method of depreciation are reviewed at the end of the financial year.

3.11 Inventories

Inventories are valued at cost or net realizable value, whichever is lower. The cost in respect of the various items
of inventory is computed as under:

- In the case of raw materials which are not ordinarily interchangeable at Standard Cost on Specific Identification
of cost basis, in case of raw materials which are ordinarily interchangeable at FIFO method of cost i.e., Cost plus
direct expenses. The cost includes cost of purchase and other costs incurred in bringing the inventories to their
present location and condition.

- In the case of stores and spares at Standard Cost on a weighted average cost basis i.e., Cost plus direct
expenses. The cost includes cost of purchase and other costs incurred in bringing the inventories to their present
location and condition.

- In the case of work in progress at raw material cost plus conversion costs depending upon the stage of
completion.

- In the case of finished goods at raw material cost plus conversion costs, packing cost, non-recoverable indirect
taxes (if applicable) and other overheads incurred to bring the goods to their present location and condition.

- In the case of by-products at estimated realizable value Net realizable value is the estimated selling price in
ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the
sale."

3.12 Assets Held for Sale

Non-current assets or disposal groups comprising of assets and liabilities are classified as ''held for sale'' when all
of the following criteria''s are met:

(i) decision has been made to sell.

(ii) The assets are available for immediate sale in their present condition.

(iii) the assets are being actively marketed and

(iv) Sales have been agreed or are expected to be concluded within 12 months of the Balance Sheet date.

Subsequently, such non-current assets and disposal groups classified as held for sale are measured at the lower
of it carrying value and fair value less costs of disposal. Non-current assets held for sale are not depreciated or
amortized."

3.13 Investments in Subsidaries & Joint Ventures

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 recognized in the Statement of Profit and Loss.

3.14 Revenue Recognition

Revenue is recognized based on the nature of activity when consideration can be reasonably measured and
recovered with reasonable certainty. The Company applies revenue recognition criteria to each nature of
revenue transaction as set out below:

a) Revenue from Contracts with Customers:

Pursuant to the application of Ind AS 115 - ''Revenue from Contracts with Customers'' effective from 1 April 2018,
the Company has applied following accounting policy for revenue recognition:

Revenue is measured at the fair value of the consideration received /receivable, taking into account
contractually defined terms of payment, and excluding taxes or duties collected on behalf of the government
and is net of rebates and discounts. The Company assesses its revenue arrangements against specific criteria to
determine if it is acting as principal or agent. The Company has concluded that it is acting as a principal in all of
its revenue arrangements.

Revenue is recognized in the income statement to the extent that it is probable that the economic benefits will
flow to the Company and the revenue and costs, if applicable, can be measured reliably.

The Company has applied five step models as per Ind AS 115 ''Revenue from contracts with customers'' to
recognize revenue in the Financial Statements. The Company satisfies a performance obligation and recognizes
revenue over time, if one of the following criteria is met:

- The customer simultaneously receives and consumes the benefits provided by the Company''s performance as
the Company perform: or

- The Company''s performance creates or enhances an asset that the customer controls as the asset is created
or enhanced: or

- The Company''s performance does not create an asset with an alternative use to the Company and the entity
has an enforceable right to payments for performance completed to date.

Revenue is recognized either at a point of time or over a period of time based on various conditions included in
the contracts with customers.

b) Sale of goods:

Revenue from sales of goods is recognized as and when the Company satisfies performance obligations by
transferring control of the promised goods to its customers.

c) Rendering of services

Revenue from a contract to provide services is recognized by reference to the stage of completion of the
contract.

d) Dividend and interest income

- Dividend income from investments is recognized 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).

- Interest income from a financial asset is recognized when it is probable that the 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 asset to that asset''s
net carrying amount on initial recognition.

e) Other Income

Other income is accounted for in accordance with IND AS 115 as and when the right to receive such income
arises and it is probable that the economic benefits will flow to the Company and the amount of income can be
measured reliably."

3.15 Government Grants

Capital Grants

- In the case of depreciable assets, the cost of the assets is shown at gross value and grant / contribution thereon
is treated as Capital Grants.

- Government grants shall be recognized in Profit or Loss on a systematic basis over the periods of the useful life
of the related asset.

Revenue Grants

- Government grants are recognized where there is reasonable assurance that the grant will be received,
and all attached conditions will be compiled with. Government grants are recognized in profit or loss on a
systematic basis over the periods in which the entire recognizes as expenses the related costs for which the
grants are intended to compensate."

3.16 Employee Benefits

- Employee benefits include salaries, wages, provident fund, gratuity, leave encashment towards un-availed
leave, compensated absences. Short-term employee benefits are recognized at their undiscounted amount in
the accounting period in which they are incurred.

- Employees benefit under defined Contribution Plan comprises Employee Provident Fund under the provisions
of Employees'' Provident Fund and Miscellaneous Provisions Act, 1952, for which the Company contributes to
the plan under the provisions of the said Act.

- Gratuity is a post-employment benefit and is in the nature of a defined benefit plan. The liability recognized in
the balance sheet in respect of gratuity is the present value of the defined benefit/obligation at the balance
sheet date, together with adjustments for unrecognized actuarial gains or losses and past service costs. The
defined benefit/obligation is calculated at or near the balance sheet date by an independent actuary using the
projected unit credit method. This is based on standard rates of inflation, salary growth rate and mortality.

Discount factors are determined close to each year-end by reference to market yields on government bonds
that have terms to maturity approximating the terms of the related liability. Service costs on the Company''s
defined benefit plan are included in employee benefits expense. Actuarial gains/losses resulting from re¬
measurements of the liability are included in other comprehensive income.

- Liability in respect of leave encashment i.e., compensated absences becoming due or expected to be availed
within one year from the balance sheet date is recognized on the basis of discounted value of estimated amount
required to be paid or estimated value of benefit expected to be availed by the employees. Liability in respect
of compensated absences becoming due or expected to be availed more than one year after the balance sheet
date is estimated on the basis of an actuarial valuation performed by an independent actuary using the projected
unit credit method. Actuarial gains and losses arising from past experience and changes in actuarial assumptions
are charged to the Statement of Profit and Loss in the year in which such gains or losses are determined.

3.17 Borrowing Cost

Borrowing costs that are attributable to the acquisition and/or construction of qualifying assets are capitalized
as part of the cost of such assets during the period of time that is necessary to complete and prepare the assets
for its intended use or sale. A qualifying asset is one that necessarily takes a substantial period of time to get
ready for its intended use. All other borrowing costs are charged to the Statement of Profit and Loss.

3.18 Earnings Per Share

- Basic earnings per share are calculated by dividing The net profit or loss for The period attributable to equity
shareholders (after deducting attributable taxes) by The weighted-average number of equities shares
outstanding during The period. The weighted-average number of equities shares outstanding during The period
is adjusted for events including A bonus issue.

- 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 are adjusted
for The effects of all dilutive potential equity shares."

3.19 Accounting for Taxes on Income

- Tax expense for the year comprises of current tax, earlier year tax and deferred tax. It is recognized in the
Statement of Profit and Loss except to the extent it relates to an item which is recognized directly in equity or
in other comprehensive income.

- Current tax is the expected tax payable/receivable on the taxable income/ loss for the year using applicable
tax rates at the Balance Sheet date, and any adjustment to taxes in respect of previous years.

- Deferred tax is recognized in respect of temporary differences between the carrying amount of assets and
liabilities for financial reporting purposes and the corresponding amounts used for taxation purposes. Deferred
tax assets are recognized only to the extent that it is probable that future taxable profits will be available against
which the asset can be utilized. Deferred tax assets are reviewed at each reporting date and reduced to the
extent that it is no longer probable that the related tax benefit will be realized.

- Minimum Alternate Tax credit is recognized as deferred tax asset only when and to the extent there is
convincing evidence that the Company will pay normal income tax during the specified period. Such an asset is
reviewed at each Balance Sheet date and the carrying amount of the MAT credit asset is written down to the
extent there is no longer convincing evidence to the effect that the Company will pay normal income tax during
the specified period.

- 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 realized, based on tax rates (and tax laws) that have been enacted or
substantively enacted by the end of the reporting period.

- Transactions or events which are recognized outside profit or loss, either in other comprehensive income or in
equity, are recorded along with the tax as applicable.

- Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the
recognized amounts and there is an intention to settle the asset and the liability on a net basis. Deferred tax
assets and deferred tax liabilities are offset when there is a legally enforceable right to set off current tax assets
against current tax liabilities; and the deferred tax assets and the deferred tax liabilities relate to income taxes
levied by the same taxation authority."

3. SIGNIFICANT ACCOUNTING POLICIES

3.01 Basis of Preparation

"These Financial Statements (''Financial Statements'') of the Company have been prepared in accordance with the Indian Accounting Standards (hereinafter referred to as the ''Ind AS'') as notified by Ministry of Corporate Affairs (''MCA'') under Section 133 of the Companies Act, 2013 (''the Act'') read with the Companies (Indian Accounting Standards) Rules, 2015, as amended and other relevant provisions of the Act. In addition, the guidance notes/announcements issued by the Institute of Chartered Accountants of India (ICAI) are also applied except where compliance with other statutory promulgation requires a different treatment.

The Ind AS Financial Statements comprise of the Balance Sheet as at year ended 31st March 2024, the Statement of profit and loss (including Other Comprehensive Income) for the year ended 31st March 2024, statement of cash flows for the year ended 31st March 2024 and Statement of changes in equity for the year ended on that date, and accounting policies and other explanatory information.

The Financial Statements were approved by the Company''s Board of Directors and authorized for issue on 28th MAY 2024.

As required by Division II issued under Schedule III of the act, the company has presented the assets and liabilities in the Balance Sheet in the order of liquidity."

3.02 Basis of Measurement

"The Financial Statements have been prepared on going concern basis in accordance with accounting principles generally accepted in India to comply with Indian Accounting Standards (Ind AS) prescribed in Companies Act.

Certain accounting policies and disclosures of the Company require the measurement of fair values, for both financial and non-financial assets and liabilities. These statements are prepared under historical cost convention on accrual basis and also certain financial assets and financial liabilities which are measured at fair values at the end of each reporting period as mentioned in the relevant notes to accounts. The Company has an established control framework with respect to the measurement of fair values. The valuation team regularly reviews significant unobservable inputs and valuation adjustments.

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 market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating 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. Fair value for measurement and/or disclosure purposes in these financial statements is determined on this basis.

Fair value measurements under Ind AS are categorized as below based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety:

- Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access at measurement date.

- Level 2 inputs are inputs, other than quoted prices included in level 1, that are observable for the asset or liability, either directly or indirectly: and

- Level 3 inputs are unobservable inputs for the valuation of assets/liabilities.

"When measuring the fair value of an asset or a liability, the Company uses observable market data as far as possible. If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.

Further information about the assumptions made in measuring fair values is included in the following notes:

Note - investment property.

Note - share-based payment; and Note - financial instruments.

The Balance Sheet and Statement of Profit and Loss are prepared and presented in the format prescribed in the Schedule III to the Companies Act, 2013 (“the Act"). The Statement of cash flows has been prepared and presented as per the requirements of Ind AS 7 “Statement of Cash flows". The disclosure requirements with respect to items in the Balance Sheet and Statement of Profit and Loss, as prescribed in the Schedule III to the Act, are presented by way of notes forming part of the Financial Statements along with the other notes required to be disclosed under the notified Accounting Standards.

Amounts in the Financial statements are presented in Indian Rupees rounded off in Lacs to two decimal places as permitted by Schedule III to the Companies Act, 2013 except otherwise stated. Per share data are presented in Indian Rupees to two decimals places.

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle. Based on the nature of products and the time between acquisition of assets for processing and their realization in cash and cash equivalents. The operating Cycle has been taken to be 12 months. Deferred tax assets and deferred tax liabilities are classified as non-current assets and non-current liabilities, as the case may be.

3.03 Use of Key Accounting Estimates and Judgements

The preparation of the Financial Statements in conformity with Ind AS requires the Management to make estimates, judgement and assumptions that affect the application of accounting policies and the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities. The principal accounting estimates have been described under the relevant income /expense and / or assets / liability item in the Financial Statements. The Management believes that the estimates used in the preparation of these Financial Statements are prudent and reasonable. Actual results could differ from these estimates. Continuous evaluation is done on the estimation and judgments based on historical experience and other factors, including expectations of future events that are believed to be reasonable.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only the period of the revision and future periods if the revision affects both current and future periods. Revisions to accounting estimates are recognized prospectively.

"Information about critical judgments in applying accounting policies, as well as estimates and assumptions that have the most significant effect to the carrying amounts of assets and liabilities within the next financial year, are included in the following notes:

- Measurement of defined benefit obligations - Note

- Measurement and likelihood of occurrence of provisions and contingencies - Note

- Recognition of deferred tax assets - Note

- Key assumptions used in discounted cash flow projections - Note

- Measurement of consideration and assets acquired as part of business combination - Note

- Impairment of Intangibles - Note "

3.04 Recent Accounting Developments

A. Application of newly amended Standards

On March 31, 2023, the Ministry of Corporate Affairs (MCA) notified Companies (Indian Accounting Standards) Amendment Rules, 2023 to further amend the Companies (Indian Accounting Standards) Rules, 2015 by making amendments to Ind AS 101 - First-time Adoption of Indian Accounting Standards, Ind AS 102 - Share-based Payment, Ind AS 103 - Business Combinations, Ind AS 107 - Financial Instruments:

Disclosures, Ind AS 109 - Financial Instruments, Ind AS 115 - Revenue from Contracts with Customers, Ind AS 1 - Presentation of Financial Statements, Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors, Ind AS 12 - Income Taxes and Ind AS 34 - Interim Financial Reporting; effective from 1 April 2023. Key amendments are as follows: -

1. Amendments to Ind AS 1 - Presentation of Financial Statements:

A. The amendments aim to help entities provide accounting policy disclosures that are more useful by replacing the requirement for entities to disclose their ''significant'' accounting policies with a requirement to disclose their ''material'' accounting policies and adding guidance on how entities apply the concept of materiality in making decisions about accounting policy disclosures.

B. The amendments have had an impact on the Group''s disclosures of accounting policies, but not on the measurement, recognition, or presentation of any items in the Group''s financial statements.

2. Amendments to Ind AS 12 - Income Taxes:

The amendments narrow the scope of the initial recognition exception under Ind AS 12, so that it no longer applies to transactions that give rise to equal taxable and deductible temporary differences such as leases.

The Group previously recognized for deferred tax on leases on a net basis. As a result of these amendments, the Group has recognized a separate deferred tax asset in relation to its lease liabilities and a deferred tax liability in relation to its right-of-use assets. Since, these balances qualify for offset as per the requirements of paragraph 74 of Ind AS 12, there is no impact in the balance sheet. There was also no impact on the opening retained earnings as at 1 April 2022.

Amendments to Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors: The amendments clarify the distinction between changes in accounting estimates, changes in accounting policies and the correction of errors. It has also been clarified how entities use measurement techniques and inputs to develop accounting estimates. The amendments had no impact on the Group''s consolidated financial statements."

B. Standards notified but not yet effective.

There are no amendments issued after the reporting date which are not yet effective up to the reporting date. The Company has not adopted any amendments that have been notified earlier but are not yet effective."

3.05 Property, Plant and Equipment

- The Company has elected to continue with carrying value of all its property, plant, and equipment as recognized in the Financial Statements as at date of transition to Ind AS and use the same as its deemed cost as at the date of transition.

- Property, plant, and equipment are stated at their cost of acquisition less accumulated depreciation and impairment (if any). The cost comprises the purchase price, borrowing cost and attributable cost of bringing the asset to its working condition for its intended use.

- The land used for the office buildings is stated at cost.

- Gains or losses arising on retirement or disposal of property, plant and equipment are recognized in the statement of Profit and Loss.

- The residual values, useful lives, and method of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

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

3.06 Depreciation and Useful Life

- Depreciation on Property, Plant and Equipment is provided on Written Down Value and computed on the basis of the useful life prescribed in Schedule II to the Companies Act, 2013 (Act) from the date the asset is ready to put to use.

- Depreciation on office building and investment properties is provided on Written Down value Method and computed on the basis of the useful life prescribed in Schedule II to the Act from the date the asset is ready to put to use.

- The residual value of 5% of Original Cost/Deemed Cost is considered for the Purpose of Calculating Depreciation rates. The residual values, useful lives and method of depreciation are reviewed at the end of each financial year.

- Depreciation is provided on a pro-rata basis in the year in which the assets are put to use.

- The Company has used rates to provide depreciation which coincide with the rates indicated in schedule II of the Companies Act 2013 on its fixed assets.

3.07 Capital Work in Progress and Intangible Assets under Development

- Property, Plant and Equipment which are not ready for intended use as on the date of Balance Sheet are disclosed as “Capital Work-in-Progress."

- Advances paid towards the acquisition of property, plant and equipment outstanding at each balance sheet date are classified as capital advances under other non-current assets."

3.08 Intangible Assets

- Intangible assets (Software) are stated at their cost of acquisition less amortization. The cost comprises of purchase price, borrowing cost, if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. These are amortized on Straight Line Method (SLM) over the useful life not exceeding 5 years from the date; the assets are available for use.

a. Impairment of Non-Financial Assets

"Assessment for impairment is done at each Balance Sheet date as to whether there is any indication that a non-financial asset may be impaired. Indefinite life intangibles are subject to a review for impairment annually or more frequently if events or circumstances indicate that it is necessary. For the purpose of assessing impairment, the smallest identifiable group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows from other assets or groups of assets is considered as a cash generating unit. Goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Company''s cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those units.

If any indication of impairment exists, an estimate of the recoverable amount of the individual asset/cash generating unit is made. Asset/cash generating unit whose carrying value exceeds their recoverable amount are written down to the recoverable amount by recognizing the impairment loss as an expense in the Statement of Profit and Loss. The impairment loss is allocated first to reduce the carrying amount of any goodwill (if any) allocated to the cash generating unit and then to the other assets of the unit, pro rata based on the carrying amount of each asset in the unit. The recoverable amount is higher of an assets or cash generating unit''s fair value less costs of disposal and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset or cash generating unit and from its disposal at the end of its useful life. Assessment is also done at each Balance Sheet date as to whether there is any indication that an impairment loss recognized for an asset in prior accounting periods may no longer exist or may have decreased, basis the assessment a reversal of an impairment loss for an asset other than goodwill is recognized in the Statement of Profit and Loss account."

b. Investment Properties

- Investment properties are properties held to earn rentals or for capital appreciation, or both. Investment properties are measured initially at their cost of acquisition less accumulated depreciation and impairment, if any. The cost comprises of purchase price, borrowing cost, if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use.

- Subsequent costs are included in the asset''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. All other repair and maintenance costs are recognized in the Statement of Profit or Loss as incurred.

- An investment property is derecognized on disposal or when the investment property is permanently withdrawn from use and no future economic benefits are expected from the disposal. Any gain or loss arising on de-recognition of property is recognized in the statement of Profit and Loss in the same period.

- Investment properties are subsequently measured at cost less accumulated depreciation and accumulated impairment losses, if any. Depreciation on investment properties is provided on the Written Down Value method, computed on the basis of useful lives prescribed in Schedule II to the Act: The residual value, useful life and method of depreciation are reviewed at the end of the financial year.

3.11 Inventories

Inventories are valued at cost or net realizable value, whichever is lower. The cost in respect of the various items of inventory is computed as under:

- In the case of raw materials which are not ordinarily interchangeable at Standard Cost on Specific Identification of cost basis, in case of raw materials which are ordinarily interchangeable at FIFO method of cost i.e., Cost plus direct expenses. The cost includes cost of purchase and other costs incurred in bringing the inventories to their present location and condition.

- In the case of stores and spares at Standard Cost on a weighted average cost basis i.e., Cost plus direct expenses. The cost includes cost of purchase and other costs incurred in bringing the inventories to their present location and condition.

- In the case of work in progress at raw material cost plus conversion costs depending upon the stage of completion.

- In the case of finished goods at raw material cost plus conversion costs, packing cost, non-recoverable indirect taxes (if applicable) and other overheads incurred to bring the goods to their present location and condition.

- In the case of by-products at estimated realizable value Net realizable value is the estimated selling price in ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.

3.12 Assets Held for Sale

Non-current assets or disposal groups comprising of assets and liabilities are classified as ''held for sale'' when all of the following criteria''s are met:

(i) decision has been made to sell.

(ii) The assets are available for immediate sale in their present condition.

(iii) the assets are being actively marketed and

(iv) Sales have been agreed or are expected to be concluded within 12 months of the Balance Sheet date.

Subsequently, such non-current assets and disposal groups classified as held for sale are measured at the lower of it carrying value and fair value less costs of disposal. Non-current assets held for sale are not depreciated or amortized."

3.13 Investments in Subsidiaries & Joint Ventures

Investments in subsidiaries and joint ventures 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 and joint venture, the difference between net disposal

proceeds and the carrying amounts are recognized in the Statement of Profit and Loss.

3.14 Revenue Recognition

Revenue is recognized based on the nature of activity when consideration can be reasonably measured and recovered with reasonable certainty. The Company applies revenue recognition criteria to each nature of revenue transaction as set out below:

a) Revenue from Contracts with Customers:

Pursuant to the application of Ind AS 115 - ''Revenue from Contracts with Customers'' effective from 1 April 2018, the Company has applied following accounting policy for revenue recognition:

Revenue is measured at the fair value of the consideration received /receivable, taking into account contractually defined terms of payment, and excluding taxes or duties collected on behalf of the government and is net of rebates and discounts. The Company assesses its revenue arrangements against specific criteria to determine if it is acting as principal or agent. The Company has concluded that it is acting as a principal in all of its revenue arrangements.

Revenue is recognized in the income statement to the extent that it is probable that the economic benefits will flow to the Company and the revenue and costs, if applicable, can be measured reliably.

The Company has applied five step models as per Ind AS 115 ''Revenue from contracts with customers'' to recognize revenue in the Financial Statements. The Company satisfies a performance obligation and recognizes revenue over time, if one of the following criteria is met:

- The customer simultaneously receives and consumes the benefits provided by the Company''s performance as the Company perform: or

- The Company''s performance creates or enhances an asset that the customer controls as the asset is created or enhanced: or

- The Company''s performance does not create an asset with an alternative use to the Company and the entity has an enforceable right to payments for performance completed to date.

Revenue is recognized either at a point of time or over a period of time based on various conditions included in the contracts with customers.

b) Sale of goods:

Revenue from sales of goods is recognized as and when the Company satisfies performance obligations by transferring control of the promised goods to its customers.

c) Rendering of services

Revenue from a contract to provide services is recognized by reference to the stage of completion of the contract.

d) Dividend and interest income

- Dividend income from investments is recognized 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).

- Interest income from a financial asset is recognized when it is probable that the 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 asset to that asset''s net carrying amount on initial recognition.

e) Other Income

Other income is accounted for in accordance with IND AS 115 as and when the right to receive such income arises and it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably."

3.15 Government Grants

Capital Grants

- In the case of depreciable assets, the cost of the assets is shown at gross value and grant / contribution thereon is treated as Capital Grants.

- Government grants shall be recognized in Profit or Loss on a systematic basis over the periods of the useful life of the related asset.

Revenue Grants

-Government grants are recognized where there is reasonable assurance that the grant will be received, and all attached conditions will be compiled with. Government grants are recognized in profit or loss on a systematic basis over the periods in which the entire recognizes as expenses the related costs for which the grants are intended to compensate.

3.16 Employee Benefits

- Employee benefits include salaries, wages, provident fund, gratuity, leave encashment towards un-availed leave, compensated absences. Short-term employee benefits are recognized at their undiscounted amount in the accounting period in which they are incurred.

- Employees benefit under defined Contribution Plan comprises Employee Provident Fund under the provisions of Employees'' Provident Fund and Miscellaneous Provisions Act, 1952, for which the Company contributes to the plan under the provisions of the said Act.

- Gratuity is a post-employment benefit and is in the nature of a defined benefit plan. The liability recognized in the balance sheet in respect of gratuity is the present value of the defined benefit/obligation at the balance sheet date, together with adjustments for unrecognized actuarial gains or losses and past service costs. The defined benefit/obligation is calculated at or near the balance sheet date by an independent actuary using the projected unit credit method. This is based on standard rates of inflation, salary growth rate and mortality. Discount factors are determined close to each year-end by reference to market yields on government bonds that have terms to maturity approximating the terms of the related liability. Service costs on the Company''s defined benefit plan are included in employee benefits expense. Actuarial gains/losses resulting from re-measurements of the liability are included in other comprehensive income.

- Liability in respect of leave encashment i.e., compensated absences becoming due or expected to be availed within one year from the balance sheet date is recognized on the basis of discounted value of estimated amount required to be paid or estimated value of benefit expected to be availed by the employees. Liability in respect of compensated absences becoming due or expected to be availed more than one year after the balance sheet date is estimated on the basis of an actuarial valuation performed by an independent actuary using the projected unit credit method. Actuarial gains and losses arising from past experience and changes in actuarial assumptions are charged to the Statement of Profit and Loss in the year in which such gains or losses are determined."

3.17 Borrowing Cost

Borrowing costs that are attributable to the acquisition and/or construction of qualifying assets are capitalized as part of the cost of such assets during the period of time that is necessary to complete and prepare the assets for its intended use or sale. A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use. All other borrowing costs are charged to the Statement of Profit and Loss.

3.18 Earnings Per Share

- Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting attributable taxes) by the weighted-average number of equities shares outstanding during the period. The weighted-average number of equities shares outstanding during the period is adjusted for events including A bonus issue.

- 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 are adjusted for the effects of all dilutive potential equity shares.

3.19 Accounting for Taxes on Income

- Tax expense for the year comprises of current tax, earlier year tax and deferred tax. It is recognized in the Statement of Profit and Loss except to the extent it relates to an item which is recognized directly in equity or in other comprehensive income.

- Current tax is the expected tax payable/receivable on the taxable income/ loss for the year using applicable tax rates at the Balance Sheet date, and any adjustment to taxes in respect of previous years.

- Deferred tax is recognized in respect of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the corresponding amounts used for taxation purposes. Deferred tax assets are recognized only to the extent that it is probable that future taxable profits will be available against which the asset can be utilized. Deferred tax assets are reviewed at each reporting date and reduced to the extent that it is no longer probable that the related tax benefit will be realized.

- Minimum Alternate Tax credit is recognized as deferred tax asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. Such an asset is reviewed at each Balance Sheet date and the carrying amount of the MAT credit asset is written down to the extent there is no longer convincing evidence to the effect that the Company will pay normal income tax during the specified period.

- 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 realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

- Transactions or events which are recognized outside profit or loss, either in other comprehensive income or in equity, are recorded along with the tax as applicable.

- Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the recognized amounts and there is an intention to settle the asset and the liability on a net basis. Deferred tax assets and deferred tax liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities; and the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority."

1 SIGNIFICANT ACCOUNTING POLICIES AND NOTES ON FINANCIAL STATEMENTS

1.01 Corporate Information

A B COTSPIN INDIA LIMITED (“Company”) is a Public Limited Company and was incorporated in 1997 with an objective of carrying on the business of Manufacturing and Trading of Yarns and other allied products. The Registered and Corporate Office of the Company is situated in Bathinda. The Company is a public limited company listed on the SME Exchange of NSE.

1.02 Basis of Preparation and Presentation of Financial Statements

These Standalone Financial Statements (‘Financial Statements’) of the Company have been prepared in accordance with the Indian Accounting Standards (hereinafter referred to as the ‘Ind AS’) as notified by Ministry of Corporate Affairs (‘MCA’) under Section 133 of the Companies Act, 2013 (‘the Act’) read with the Companies (Indian Accounting Standards) Rules, 2015, as amended and other relevant provisions of the Act. In addition, the guidance notes/announcements issued by the Institute of Chartered Accountants of India (ICAI) are also applied except where compliance with other statutory promulgation requires a different treatment.

The Ind AS Financial Statements comprise of the Balance Sheet as at year ended 31^st March 2023, the Statement of profit and loss (including Other Comprehensive Income) for the year ended 31^st March 2023, statement of cash flows for the year ended 31^st March 2023 and Statement of changes in equity for the year ended on that date, and accounting policies and other explanatory information.

The Financial Statements were approved by the Company’s Board of Directors and authorized for issue on 30^th May 2023.

As required by Division II issued under Schedule III of the act, the company has presented the assets and liabilities in the Balance Sheet in the order of liquidity.

1.03 Basis of Measurement

The Financial Statements have been prepared on going concern basis in accordance with accounting principles generally accepted in India to comply with Indian Accounting Standards (Ind AS) prescribed in Companies Act.

These statements are prepared under historical cost convention on accrual basis and also certain financial assets and financial liabilities which are measured at fair values at the end of each reporting period as mentioned in the relevant notes to accounts.

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 market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating 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. Fair value for measurement and/or disclosure purposes in these financial statements is determined on this basis.

Fair value measurements under Ind AS are categorized as below based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety:

• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access at measurement date.

• Level 2 inputs are inputs, other than quoted prices included in level 1, that are observable for the asset or liability, either directly or indirectly: and

• Level 3 inputs are unobservable inputs for the valuation of assets/liabilities.

The Balance Sheet and Statement of Profit and Loss are prepared and presented in the format prescribed in the Schedule III to the Companies Act, 2013 (“the Act”). The Statement of cash flows has been prepared and presented as per the requirements of Ind AS 7 “Statement of Cash flows”. The disclosure requirements with respect to items in the Balance Sheet and Statement of Profit and Loss, as prescribed in the Schedule III to the Act, are presented by way of notes forming part of the Financial Statements along with the other notes required to be disclosed under the notified Accounting Standards.

Amounts in the Financial statements are presented in Indian Rupees rounded off to Lacs in two decimal places as permitted by Schedule III to the Companies Act, 2013 except otherwise stated. Per share data are presented in Indian Rupees to two decimals places.

All assets and liabilities have been classified as current or non-current as per the Company’s normal operating cycle. The Operating Cycle has been taken to be 12 months. Deferred tax assets and deferred tax liabilities are classified as non-current assets and non-current liabilities, as the case may be.

1.04 Use of Estimates

The preparation of the Financial Statements in conformity with Ind AS requires the Management to make estimates, judgement and assumptions that affect the application of accounting policies and the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities. The principal accounting estimates have been described under the relevant income /expense and / or assets / liability item in the Financial Statements. The Management believes that the estimates used in the preparation of these Financial Statements are prudent and reasonable. Actual results could differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only the period of the revision and future periods if the revision affects both current and future periods.

1.05 Recent Accounting Developments

Application of newly amended Standards

The Company has adopted, with effect from 01 April 2022, the following revised standards. Their adoption has not had any significant impact on the amounts reported in the financial statements.

1. Amendments to Ind AS 103, Business Combinations -

(i) making reference to “Conceptual Framework for Financial Reporting under Ind ASs” issued by the ICAI instead of its predecessor “Framework for the Preparation and Presentation of Financial

Statements in accordance with Ind ASs”

(ii) requiring that, for identifying liabilities and contingent liabilities assumed in a business combination, an acquirer applies Ind AS 37 or Appendix C, Levies, of Ind AS 37, &

(iii) specifically clarifying that an acquirer shall not recognize contingent assets acquired in a business combination at the acquisition date.

2. Amendments to Ind AS 109, Financial Instruments w.r.t derecognition of financial liabilities, clarifying that while performing the ’10 percent’ test, in determining the fees paid net of fees received, a borrower includes only fees paid or received between the borrower and the lender, including fees paid or received by either the borrower or lender on the other‘s behalf.

3. Amendments to Ind AS 16, Property, Plant and Equipment clarifying that excess of net sale proceeds of items produced over the cost of testing, if any, shall not be recognized in the profit or loss but deducted from the directly attributable costs considered as part of cost of an item of property, plant, and equipment.

4. Amendments to Ind AS 37, Provisions, Contingent Liabilities and Contingent Assets w.r.t onerous contracts by adding what ‘costs of fulfilling a contract’ comprises.

B. Standards notified but not yet effective.

On March 31, 2023, the Ministry of Corporate Affairs (MCA) notified Companies (Indian Accounting Standards) Amendment Rules, 2023 to further amend the Companies (Indian Accounting Standards) Rules, 2015 by making amendments to Ind AS 101 - First-time Adoption of Indian Accounting Standards, Ind AS 102 - Share-based Payment, Ind AS 103 - Business Combinations, Ind AS 107 - Financial Instruments: Disclosures, Ind AS 109 - Financial Instruments, Ind AS 115 - Revenue from Contracts with Customers, Ind AS 1 - Presentation of Financial Statements, Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors, Ind AS 12 - Income Taxes and Ind AS 34 - Interim Financial Reporting; effective from 1 April 2023. Key amendments are as follows:-

1. Amendments to Ind AS 1 - Presentation of Financial Statements: The amendments replace ‘significant accounting policies’ by ‘material accounting policy information’ in the

notes to the financial statements. Consequently, along with Balance Sheet, PL Statement, SOCIE, Statement of Cash Flows, etc.; companies will now be required to include notes comprising material accounting policy information and other explanatory information, as part of the financial statements. The main objective of this change is to - • identify and disclose all accounting policies that provide material information to primary users of financial statements and • identify immaterial accounting policies and eliminate them from their financial statements. Accounting policy information, together with other information, is material when it can reasonably be expected to influence decisions of primary users of general-purpose financial statements. The Company does not expect this amendment to have a material impact on its financial statements.

2. Amendments to Ind AS 12 - Income Taxes: These amendments clarify that in cases of transactions where equal amounts of assets and liabilities are recognized on initial recognition, the initial recognition exemption does not apply. A company must, therefore, recognize deferred tax assets and deferred tax liability in all such cases. Thus, if a company has not yet recognized deferred tax asset and deferred tax liability on right-of-use assets, lease liabilities, decommissioning or restoration liabilities, or has recognized deferred tax asset or deferred tax liability on net basis, that company shall have to recognize deferred tax assets and deferred tax liabilities on gross basis based on the carrying amounts existing at the beginning of 1 April 2022. The Company is evaluating the impact, if any, on its financial statements.

3. Amendments to Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors: The definition of ‘change in accounting estimate’ has been replaced with the definition of ‘accounting estimates. Prior to this amendment, Ind AS 8 had not defined the term ‘accounting estimates. Under the new definition, accounting estimates are “monetary amounts in financial statements that are subject to measurement uncertainty.” Paragraphs 32 and 32A explicate the development of accounting estimates, along with examples. The amendments will help entities to distinguish between accounting policies and accounting estimates. Entities develop accounting estimates if accounting policies require items in financial statements to be measured in a way that involves measurement uncertainty. The

The company does not expect this amendment to have any significant impact on its financial statements.

4. Amendments to Ind AS 107 - Financial Instruments: Disclosures and Ind AS 34 - Interim Financial Reporting: These amendments are consequent to the amendments in Ind AS 1 related to change from ‘significant accounting policies’ to ‘material accounting policy information’. The Company does not expect this amendment to have any significant impact on its financial statements.

The Company has not early adopted any amendments that have been notified but are not yet effective.

1.06 Property, Plant and Equipment

• The Company has elected to continue with carrying value of all its property, plant, and equipment as recognized in the Financial Statements as at date of transition to Ind AS and use the same as its deemed cost as at the date of transition.

• Property, plant, and equipment are stated at their cost of acquisition less accumulated depreciation and impairment (if any). The cost comprises the purchase price, borrowing cost and attributable cost of bringing the asset to its working condition for its intended use.

• The land used for the office buildings is stated at cost.

• Gains or losses arising on retirement or disposal of property, plant and equipment are recognized in the statement of Profit and Loss.

• The residual values, useful lives, and method of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

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

1.07 Depreciation and Useful Life

• Depreciation on Property, Plant and Equipment is provided on Written Down Value and computed on the basis of the useful life prescribed in Schedule II to the Companies Act, 2013 (Act) from the date the asset is ready to put to use.

• Depreciation on office building and investment properties is provided on Written Down value Method and computed on the basis of the useful life prescribed in Schedule II to the Act from the date the asset is ready to put to use.

• The residual value of 5% of Original Cost is considered for the Purpose of Calculating Depreciation rates. The residual values, useful lives and method of depreciation are reviewed at the end of each financial year.

• Depreciation is provided on pro-rata basis in the year in which the assets are put to use.

• The Company has used rates to provide depreciation which coincide with the rates indicated in schedule II of the Companies Act 2013 on its fixed assets.

1.08 Capital Work in Progress and Intangible Assets under Development

• Property, Plant and Equipment which are not ready for intended use as on the date of Balance Sheet are disclosed as “Capital Work-in-Progress.”

• Advances paid towards the acquisition of property, plant and equipment outstanding at each balance sheet date are classified as capital advances under other non-current assets.

1.09 Intangible Assets

• Intangible assets (Software) are stated at their cost of acquisition less amortization. The cost comprises of purchase price, borrowing cost, if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. These are amortized on Straight Line Method (SLM) over the useful life not exceeding 5 years from the date; the assets are available for use.

1.10 Impairment of Tangible and Intangible Assets

• The carrying amount of assets is reviewed at each balance sheet date and impairment loss is recognized whenever there is any indication of impairment based on internal/ external indicators. An impairment loss is recognized in the Statement of Profit and Loss where the carrying amount of the assets exceeds the recoverable amount of the cash generating units.

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

• An impairment loss is recognized immediately in profit or loss. An impairment loss is reversed if there is change in the recoverable amount and such loss either no longer exists or has decreased.

• A previously recognized 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 recognized. 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 recognized for the asset in prior years. Such reversal is recognized in the statement of profit or loss unless the asset is carried at a revalued amount, in which case, the reversal is treated as a revaluation increase.

1.11 Investment Properties

• Investment properties are properties held to earn rentals or for capital appreciation, or both. Investment properties are measured initially at their cost of acquisition less accumulated depreciation and impairment, if any. The cost comprises of purchase price, borrowing cost, if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use.

• Subsequent costs are included in the asset’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. All other repair and maintenance costs are recognized in Statement of Profit or Loss as incurred.

• An investment property is derecognized on disposal or when the investment property is permanently withdrawn from use and no future economic benefits are expected from the disposal. Any gain or loss arising on de-recognition of property is recognized in the statement of Profit and Loss in the same period.

• Investment properties are subsequently measured at cost less accumulated depreciation and accumulated impairment losses, if any. Depreciation on investment properties is provided on the Written Down Value method, computed on the basis of useful lives prescribed in Schedule II to the Act: The residual value, useful life and method of depreciation are reviewed at the end of the financial year.

1.12 Inventories

• Inventories are valued at cost or net realizable value, whichever is lower. The cost in respect of the various items of inventory is computed as under:

• In case of raw materials at Standard Cost on weighted average cost basis i.e., Cost plus direct expenses. The cost includes cost of purchase and other costs incurred in bringing the inventories to their present location and condition.

• In case of stores and spares at Standard Cost on weighted average cost basis i.e., Cost plus direct expenses. The cost includes cost of purchase and other costs incurred in bringing the inventories to their present location and condition.

• In case of work in progress at raw material cost plus conversion costs depending upon the stage of completion.

• In case of finished goods at raw material cost plus conversion costs, packing cost, non-recoverable indirect taxes (if applicable) and other overheads incurred to bring the goods to their present location and condition.

• In case of by-products at estimated realizable value Net realizable value is the estimated selling price in ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.

1.13 Revenue Recognition

• Revenue is recognized based on nature of activity when consideration can be reasonably measured and recovered with reasonable certainty. The Company applies revenue recognition criteria to each nature of revenue transaction as set out below:

a) Revenue from Contracts with Customers:

Pursuant to the application of Ind AS 115 - ‘Revenue from Contracts with Customers'' effective from 1 April 2018, the Company has applied following accounting policy for revenue recognition:

Revenue is measured at the fair value of the consideration received /receivable, taking into account contractually defined terms of payment, and excluding taxes or duties collected on behalf of the government and is net of rebates and discounts. The Company assesses its revenue arrangements against specific criteria to determine if it is acting as principal or agent. The Company has concluded that it is acting as a principal in all of its revenue arrangements.

Revenue is recognized in the income statement to the extent that it is probable that the economic benefits will flow to the Company and the revenue and costs, if applicable, can be measured reliably.

The Company has applied five step model as per Ind AS 115 Revenue from contracts with customers'' to recognize revenue in the Financial Statements. The Company satisfies a performance obligation and recognizes revenue over time, if one of the following criteria is met:

- The customer simultaneously receives and consumes the benefits provided by the Company’s performance as the Company perform: or

- The Company’s performance creates or enhances an asset that the customer controls as the asset is created or enhanced: or

- The Company’s performance does not create an asset with an alternative use to the Company and the entity has an enforceable right to payments for performance completed to date.

Revenue is recognized either at point of time or over a period of time based on various conditions included in the contracts with customers.

b) Sale of goods:

Revenue from sales of goods is recognized as and when the Company satisfies performance obligations by transferring control of the promised goods to its customers.

c) Rendering of services

Revenue from a contract to provide services is recognized by reference to the stage of completion of the contract.

d) Dividend and interest income

- Dividend income from investments is recognized 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).

- Interest income from a financial asset is recognized when it is probable that the 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 asset to that asset''s net carrying amount on initial recognition.

e) Other Income

Other income is accounted for in accordance with IND AS 115 as and when the right to receive such income arises and it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably.

.14 Government Grants

• Capital Grants

- In case of depreciable assets, the cost of the assets is shown at gross value and grant / contribution thereon is treated as Capital Grants.

- Government grants shall be recognized in Profit or Loss on a systematic basis over the periods of the useful life of the related asset.

• Revenue Grants

- Government grants are recognized where there is reasonable assurance that the grant will be received, and all attached conditions will be compiled with. Government grants are recognized in profit or loss on a systematic basis over the periods in which the entire recognizes as expenses the related costs for which the grants are intended to compensate.

.15 Employee Benefits

• Employee benefits include salaries, wages, provident fund, gratuity. Short-term employee benefits are recognized at their undiscounted amount in the accounting period in which they are incurred.

• Employees benefit under defined Contribution Plan comprises Employee Provident Fund under the provisions of Employees'' Provident Fund and Miscellaneous Provisions Act, 1952, for which the Company contributes to the plan under the provisions of the said Act.

• Gratuity is a post-employment benefit and is in the nature of a defined benefit plan. The liability recognized in the balance sheet in respect of gratuity is the present value of the defined benefit/obligation at the balance sheet date, together with adjustments for unrecognized actuarial gains or losses and past service costs. The defined benefit/obligation is calculated at or near the balance sheet date by an independent actuary using the projected unit credit method. This is based on standard rates of inflation, salary growth rate and mortality. Discount factors are determined close to each year-end by reference to market yields on government bonds that have terms to maturity approximating the terms of the related liability. Service costs on the Company’s defined benefit plan are included in employee benefits expense. Actuarial gains/losses resulting from re-measurements of the liability are included in other comprehensive income.

1.16 Borrowi ng Cost

• Borrowing costs that are attributable to the acquisition and/or construction of qualifying assets are capitalized as part of the cost of such assets during the period of time that is necessary to complete and prepare the assets for its intended use or sale. A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use. All other borrowing costs are charged to Statement of Profit and Loss.

1.17 Earnings Per Share

• Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting attributable taxes) by the weighted-average number of equity shares outstanding during the period. The weighted-average number of equity shares outstanding during the period is adjusted for events including a bonus issue.

• 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 are adjusted for the effects of all dilutive potential equity shares.

1.18 Accounting for Taxes on Income

• Tax expense for the year comprises of current tax, earlier year tax and deferred tax. It is recognized in the Statement of Profit and Loss except to the extent it relates to an item which is recognized directly in equity or in other comprehensive income.

• Current tax is the expected tax payable/receivable on the taxable income/ loss for the year using applicable tax rates at the Balance Sheet date, and any adjustment to taxes in respect of previous years.

• Deferred tax is recognized in respect of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the corresponding amounts used for taxation purposes. Deferred tax assets are recognized only to the extent that it is probable that future taxable profits will be available against which the asset can be utilized. Deferred tax assets are reviewed at each reporting date and reduced to the extent that it is no longer probable that the related tax benefit will be realized.

• Minimum Alternate Tax credit is recognized as deferred tax asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. Such asset is reviewed at each Balance Sheet date and the carrying amount of the MAT credit asset is written down to the extent there is no longer convincing evidence to the effect that the Company will pay normal income tax during the specified period.

• 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 realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

• Transactions or events which are recognized outside profit or loss, either in other comprehensive income or in equity, are recorded along with the tax as applicable.

1.19 Provisions, Contingent Liabilities and Contingent Assets

• Provisions are recognized only when:

- the Company has a present obligation (legal or constructive) as a result of a past event; and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and a reliable estimate can be made of the amount of the obligation.

- Provision is measured using the cash flows estimated to settle the present obligation and when the effect of time value of money is material, the carrying amount of the provision is the present value of those cash flows.

• Contingent liability is disclosed in case of:

- a present obligation arising from past events, when it is not probable that an outflow of resources will be required to settle the obligation; and a present obligation arising from past events, when no reliable estimate is possible.

• Contingent Assets:

- Contingent assets are disclosed where an inflow of economic benefits is probable.

Provisions, contingent liabilities, and contingent assets are reviewed at each Balance Sheet date.

1.20 Operating Lease

Leases in which the lessor does not transfer substantially all the risks and rewards of ownership of an asset to the lessee are classified as operating leases.

• Company as a lessee

Lease rentals are charged to statement of profit and loss on straight-line basis except where scheduled increase in rent compensates the lessor for expected inflationary costs.

• Company as a lessor

Rental income is recognized on straight-line basis over the lease term except where scheduled increase in rent compensates the Company with expected inflationary costs.

1.21 Finance Lease

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.

• Company as a lessee

A lease that transfers substantially all the risks and rewards incidental to ownership of an asset to the Company is classified as a finance lease. Title may or may not eventually be transferred.

Finance leases are capitalized at the commencement of the lease at the inception date of the 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 recognized in finance costs in the statement of profit and loss.

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.

• Company as a lessor

Leases are classified as finance leases when substantially all of the risks and rewards of ownership transfer from the Company to the lessee. Amounts due from lessees under finance leases are recorded as receivables at the Company’s net investment in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the net investment outstanding in respect of the lease.

1.22 Offsetting of Assets and Liabilities

• The financial assets and financial liabilities are offset and presented on net basis in the Balance Sheet when there is a current legally enforceable right to set-off the recognized amounts and it is intended to either settle on net basis or to realize the asset and settle the liability simultaneously.

1.23 Cash and Cash Equivalents

• Cash and cash equivalents comprise of cash in hand, demand deposits and short-term highly liquid investments that are readily convertible into known amount of cash and which are subject to an insignificant risk of changes in value.

1.24 Cash Flow Statement

• Cash flows are reported using the indirect method, whereby profit after tax is adjusted for the effects of transactions of a non-cash nature, any deferrals, or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows are segregated into operating, investing, and financing activities.

1.25 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.

• Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions of the instrument. These statements are prepared under historical cost convention on accrual basis. Historical cost is generally based on the fair value of the consideration given in exchange for goods and services. Transaction costs that are directly attributable to the acquisition or issue of financial instruments (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss. Subsequently, financial instruments are measured according to the category in which they are classified.

1.26 Financial assets

All recognized financial assets are subsequently measured in their entirety at either amortized cost using the effective interest method or fair value, depending on the classification of the financial assets.

Classification of financial assets

Classification of financial assets depends on the nature and purpose of the financial assets and is determined at the time of initial recognition. The Company classifies its financial assets in the following measurement categories:

• Those to be measured subsequently at fair value (either through other comprehensive income, or through profit or loss), and those measured at amortized cost.

• The classification depends on the entity''s business model for managing the financial assets and the contractual terms of the cash flows.

• A financial asset that meets the following two conditions is measured at amortized cost unless the asset is designated at fair value through profit or loss under the fair value option:

- Business model test: the objective of the Company''s business model is to hold the financial asset to collect the contractual cash flows.

- Cash flow characteristic test: the contractual term of the financial asset gives rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

• A financial asset that meets the following two conditions is measured at fair value through other comprehensive income unless the asset is designated at fair value through profit or loss under the fair value option:

- Business model test: the financial asset is held within a business model whose objective is achieved by both collecting cash flows and selling financial assets.

- Cash flow characteristic test: the contractual term of the financial asset gives rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

• All other financial assets are measured at fair value through profit or loss.

1.27 Foreign Currency Transactions

• The 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 Lacs.

• Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of transaction.

• Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency closing rates of exchange at the reporting date. Exchange differences arising on settlement or translation of monetary items are recognized in Statement of Profit and Loss except to the extent of exchange differences which are regarded as an adjustment to interest costs on foreign currency borrowings that are directly attributable to the acquisition or construction of qualifying assets which are capitalized as cost of assets.

1A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND CHANGES

The Financial Statements have been prepared using the significant accounting policies and measurement basis summarized above. These were used throughout all periods presented in the Financial Statements.