Jain Resource Recycling Ltd. कंपली की लेखा नीति

Mar 31, 2025

II SUMMARY OF MATERIAL ACCOUNTING POLICIES

A BASIS OF PREPARATION

Statement of compliance to IndAS:

The Ind AS Standalone Financial Statements of Jain Resource Recycling Limited (formerly known as Jain Resource Recycling Private Limited) as at and for
the year ended March 31, 2025, has been prepared in accordance with the recognition and measurement principles of Indian Accounting Standards (Ind AS)
as prescribed under Section 133 of the Companies Act, 2013, read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, and other
accounting principles generally accepted in India. These financial statements also comply with the presentation requirements of Division II of Schedule III to
the Companies Act, 2013 (Ind AS-compliant Schedule III), as applicable.

The Ind AS Standalone Financial Statements include the Ind AS Standalone Balance Sheet as at March 31, 2025, the Ind AS Standalone Statement of Profit and
Loss (including Other Comprehensive Income/(Loss)), the Ind AS Standalone Statement of Changes in Equity (SOCIE), and the Ind AS Standalone Statement
of Cash Flows for the year ended March 31, 2025, along with a summary of material accounting policies and other explanatory notes.

The Ind AS Financial Statements for the year ended March 31, 2025, has been prepared by the management of the Company by following the mandatory
exceptions and optional exemptions available as per Ind AS 101 for the transition date of 1st April 2023 (as stated above) and after making suitable
adjustments in respect of recognition and measurement principles based on the audited statutory Financial statements as at and for the year ended March 31,
2024, which were prepared in accordance with the Indian GAAP and The transition date to Ind AS is April 01, 2023 These standalone financial statements
were authorised for issue by the Company''s Board of Directors on August 24, 2025.

Business Combinations:

The Company accounts for business combinations using the acquisition method when the acquired set of activities and assets meets the definition of a
business and control is transferred to the Company. In determining whether a particular set of activities and assets constitutes a business, the Company
assesses whether the acquired set includes, at a minimum, an input and a substantive process and whether it has the ability to produce outputs.

The Company has an option to apply a ''concentration test'' that permits a simplified assessment of whether an acquired set of activities and assets is not a
business. The optional concentration test is met if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or
group of similar identifiable assets.

The consideration transferred in a business acquisition is generally measured at fair value as of the acquisition date, along with the identifiable net assets
acquired. Goodwill represents the excess of the purchase consideration transferred over the net identifiable assets, including identifiable intangible assets and
liabilities assumed, at the acquisition date. It is initially recognized at cost and subsequently tested for impairment at least annually or when indicators of
impairment arise. Goodwill is allocated to cash-generating units (CGUs) for impairment testing, and any impairment loss recognized is not reversed in
subsequent periods.

Any gain on a bargain purchase is recognized in other comprehensive income (OCI) and accumulated in equity as a capital reserve if there is clear evidence
of the underlying reasons for classifying the business combination as a bargain purchase. If such clear evidence does not exist, the gain is recognized directly
in equity as a capital reserve.Transaction costs and acquisition-related costs are expensed as incurred, except when they relate to the issuance of debt or
equity securities.

The consideration transferred does not include amounts related to the settlement of pre-existing relationships with the acquiree. Such amounts are generally
recognised in the statement of profit and loss.

Any contingent consideration is measured at fair value at the date of acquisition. If an obligation to pay contingent consideration that meets the definition of
a financial instrument is classified as equity, then it is not remeasured and settlement is accounted for v\hdjijKxq«Uy. Othervvise, other contingent
consideration is remeasured at fair value at each reporting date and subsequent changes in the fair value of the^&i^&CKmJrijvration are recjUjotisd^p the
statement of profit and loss.

If a business combination is achieved in stages, then the previously held equity interest in the acquiree is reifft^nredirt i^fyV]uicrrtl«n-d^-kf/ir value and
resulting gain orloss, if anv, is recognised in profit and loss or OCI, as appropriate \\v>5\ 1 -ST JJ ^ 5 / ^ k

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III. MATERIAL ACCOUNTING POLICY INFORMATION

1 Current versus Non-Current Classification:

All assets and liabilities have been classified as Current and Non-Current based on the Company''s normal operating cycle and the other criteria set out in
Schedule 111 to the Companies Act, 2013.

Assets

An asset is classified as current when it satisfies any of the following criteria:

a. It is expected to be realised in, or is intended for sale or consumption in, The Company''s normal operating cycle;

b. It is held primarily for the purpose of being traded;

c. It is expected to be realised within 12 months after the reporting date; or

d. It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date.

Current assets include the current portion of non-current financial assets. All other assets are classified as non-current.

Liabilities

A liability is classified as current when it satisfies any of the following criteria:

a. It is expected to be settled in the Company''s nonual operating cycle;

b. It is held primarily for the purpose of being traded;

c. It is due to be settled within 12 months after the reporting date; or

d. The Company does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. Terms of liability that
could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

Current liabilities include the current portion of non-current financial liabilities. All other liabilities are classified as non-current.

Operating Cycle:

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash or cash equivalents. The Company has identified
12 months as its operating cycle.

2 Use of Estimates:

The preparation of standalone financial statements in conformity with Indian Accounting Standards (Ind-AS) requires that the management of the Company
make estimates and assumptions that affect the reported amounts of assets and liabilities and tire disclosure of contingent liabilities as at the date of the
financial statements, as well as the results of operations during the reporting period. Although these estimates are based on management''s best knowledge of
current events and actions, actual results could differ from these estimates and are recognized in the period in which the results are known or materialized.

3 Property, Plant and Equipment:

Under the previous GAAP (Indian GAAP), all assets were carried at cost, less accumulated depreciation and accumulated impairment losses, if any. On
transition to Ind-AS, the Company has elected to continue with the carrying value for all of its property and equipment recognized as of April 01, 2021 (date
of transition to Ind-AS) measured as per the previous GAAP and use that carrying value as its deemed cost as at the date of transition.

Property, Plant and Equipment are stated at cost less accumulated depreciation and impairment in value, if any. Cost includes the purchase price (inclusive
of import duties and non-refundable purchase taxes, after deducting trade discounts and rebates), other costs directly attributable to bringing the asset to the
location and condition necessary for it to be capable of operating in the manner intended by management, and an initial e_slimaig_of the costs of dismantling,
removing the item, and restoring the site on which it is located, if any. ^

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If the Company has acquired Property, Plant and Equipment on a deferred term basis and the terms are beyond normal credit terms, the property, plant, and
equipment will be recognized at the cash price equivalent, i.e., the discounted amount.

The cost of assets not ready for use as at the balance sheet date is disclosed under Capital Work-In-Progress.

The cost of replacement spares or major inspections relating to property, plant, and equipment is capitalized only when it is probable that future economic
benefits associated with these will flow to The Company, and the cost of the item can be measured reliably. When parts of an item of property, plant, and
equipment have different useful lives, they are accounted for as separate items (major components) of property, plant, and equipment.

Depreciation

Depreciation on Property, Plant, and Equipment (PPE) is provided on the Written Down Value (VVDV) Method over the useful life of the asset as specified in
Schedule II to the Companies Act, 2013. In determining the depreciable value of the assets, the Company has retained the residual value at 5% of the
capitalized value of the assets. The useful life of the assets is as tabulated below:

5 Leases:

As lessee The Company assesses whether a contract contains a lease at the inception of the contract. A contract is, or contains, a lease if the contract conveys
the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control
the use of an identified asset, the Company evaluates whether: (1) the contract involves the use of an identified asset, (2) the Company has substantially all of
the economic benefits from the use of the asset during the lease term, and (3) The Company has the right to direct the use of the asset.

The Company recognizes a right-of-use asset and a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term
of twelve months or less (short-term leases) and leases for low-value underlying assets. For these short-term leases and leases for low-value underlying
assets, the Company recognizes the lease payments as an operating expense on a straight-line basis over the lease term.

Certain lease arrangements include options to extend or terminate the lease before the lease term ends. Right-of-use assets and lease liabilities include these
options when it is reasonably certain that the option to extend the lease will be exercised or the option to terminate the lease will not be exercised.

The right-of-use assets are initially'' recognized at cost, which includes the initial amount of the lease liability adjusted for any lease payments made at or
before the commencement date of the lease, plus any initial direct costs, less any lease incentives. They are subsequently measured at cost less accumulated
depreciation/amortization and impairment losses. C/^"^

Right-of-use assets are depreciated/amortized from the commencement date to the end of the useful life of the underlying asset if the lease transfers
ownership of the underlying asset by the end of the lease term, or if the cost of right-of-use assets reflects that the purchase option will be exercised.
Otherwise, right-of-use assets are depreciated/amortized from the commencement date on a straight-line basis over the shorter of the lease term and the
useful life of tire underlying asset.

Right-of-use assets are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be
recoverable. For impairment testing purposes, the recoverable amount (i.e., the higher of the fair value less cost to sell and the value-in-use) is determined on
an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable
amount is determined for the Cash Generating Unit (CGU) to which the asset belongs.

The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease payments are discounted using the
interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rate. Lease liabilities are re-measured with a corresponding
adjustment to the related right-of-use asset if The Company changes its assessment of whether it will exercise an extension or termination option.

6 Impairment:

Assessment is done annually as to whether there is any indication that an asset (tangible and intangible) may be impaired. 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. If any such indication exists, an estimate of the recoverable amount of the asset/cash-
generating unit is made. Assets whose carrying value exceeds their recoverable amount are written down to the recoverable amount. Recoverable amount is
the higher of an asset''s or cash-generating unit''s fair value less cost to sell 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 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. In
such cases, impairment losses are reversed to the extent the asset''s carrying amount does not exceed the cariying amount that would have been determined if
no impairment loss had previously been recognized.

7 Borrowing Cost:

Borrowing costs that are directly related to acquiring, constructing, or producing a qualifying asset are capitalized during the time required to complete and
make the asset ready for its intended use. These costs include interest calculated using the effective interest method, incurred by The Company in relation to
borrowed funds. Additionally, borrowing costs encompass exchange differences, but only to the extent that they are considered an adjustment to borrowing
costs.

8 Inventories:

• Inventories include raw material, consumable stores, work-in-progress, finished goods, and stock in trade

• Inventories are valued at cost or net realizable value, whichever is lower. The cost is determined using the First-In-First Out method.

• The cost of finished goods and work-in-progress comprises raw material, direct labour and other direct and attributable costs, other direct costs, and related
production overheads.

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

9 Foreign Currency Transaction:

A. Functional and presentation currency

These standalone financial statements are presented in Indian Rupees (INR), which is also the Company''s functional currency. All amounts have been
rounded to the nearest million, unless otherwise indicated.

B. Transactions and closing balances

(i) Foreign currency transactions are initially recorded in the Company''s functional currency using the spot exchange rate prevailing on the transaction date.

(ii) Monetary assets and liabilities denominated in foreign currencies are retranslated at the spot exchange rate on the reporting date. Any exchange gains or
losses arising from the settlement or retranslation of these monetary items are recognized in the profit and loss statement.

(iii) Non-monetary items carj^cHfr^kstorical cost in a foreign currency are translated based on the exchange rate applicable on the date of the original

transaction. ______

10 Revenue Recognition:

The Company determines the recognition of revenue by applying a structured five-step model, ensuring compliance with applicable accounting standards.

(i) Identify the contract with a customer - The Company assesses whether an agreement exists that creates enforceable rights and obligations.

(ii) Identify the performance obligations - The Company determines the distinct goods or services promised in the contract.

(iii) Determine the transaction price - The Company establishes the amount of consideration it expects to be entitled to in exchange for fulfilling its
performance obligations.

(iv) Allocate the transaction price to performance obligations - The Company distributes the transaction price among the identified performance obligations
based on their standalone selling prices.

(v) Recognize revenue when (or as) performance obligations are satisfied - The Company recognizes revenue when control of the goods or services
transfers to the customer, either at a point in time or over time, as applicable."

Revenue from Sale of Goods. Scrap, and Sendee Income:

Sales, including those from scrap, are recognized when the buyer obtains control of the products as per the contractual terms, with revenue recorded net of
returns and rebates. Control implies the authority to use the goods and derive the majority of their economic benefits. Typically, control is considered
transferred when the goods are either dispatched to the customer or made available for their collection, provided that ownership rights have been passed to
the buyer and The Company no longer retains significant risks or obligations related to the delivered goods.

The Company recognizes revenue from service contracts in its Statement of Profit and Loss once the corresponding performance obligations have been
fulfilled. Revenue is recorded when control over the contracted goods or services is transferred to customers, reflecting the expected consideration in
exchange for those goods or sendees.

In determining the transaction price, The Company evaluates the contract terms and its established business practices. The transaction price represents the
amount the Company anticipates receiving in exchange for delivering goods or services, excluding any amounts collected on behalf of third parties, such as
indirect taxes. Consideration in a contract may be fixed, variable (subject to minimal risk of reversal), or a combination of both. As most sales occur on an
advance payment basis or with short credit terms not exceeding one year, The Company does not account for any financing element in its revenue
recognition. Revenue figures presented exclude applicable goods and services tax.

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The Company allocates the transaction price to each distinct performance obligation in a way that appropriately reflects the expected consideration. Upon
entering into a contract, an assessment is made to determine whether each performance obligation is satisfied over time or at a specific point in time

Advance payments received for performance obligations yet to be fulfilled are recorded as contract liabilities and classified under other liabilities in the
financial statements. Conversely, when the Company completes a performance obligation before receiving payment, a contract asset or receivable is
recognized, depending on whether further performance is required before the payment becomes due.

The Company does not anticipate having contracts where the duration between the transfer of goods or services and the receipt of payment from customers
exceeds one year. Consequently, the transaction price is not adjusted for the time value of money.

Other Income

Interest: Interest income is recognized on effective interest method taking into account the amount outstanding and the rate applicable.

Dividend : Dividend income is recognized when the right to receive dividend is established.

Insurance Claims : Insurance claims are accounted for on the basis of claims lodged with insurance Company and to the extent that there is a reasonable
certainty in realizing the claims.

Export Incentive: Income from export incentives, such as duty drawback and the Remission of Duties and Taxes on Export Products (RoDTEP), is recognized
on an accrual basis when there are no significant uncertainties regarding the amount of consideration to be derived and its ultimate collection.

11 Employee Benefits:

1. Short - Term employee benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee benefits and recognized in the
period in which the employee renders the related service.

2. Defined Contribution Plans

Contribution towards provident fund/Employee State Insurance for employees working with The Company''s operations in India is made to the regulatory
authorities, where The Company has no further obligations. Such benefits are classified as Defined Contribution Schemes as the Company does not carry any
further obligations, apart from the contributions made on a monthly basis.

3. Defined Benefit Plan

The Company provides for gratuity, a defined benefit plan (the "Gratuity Plan") which is unfunded covering eligible employees in accordance with the
Payment of Gratuity Act, 1972. The Gratuity Plan provides a lump sum payment to vested employees at retirement, death, incapacitation, or termination of
employment, of an amount based on the respective employee''s salary and the tenure of employment. The Company''s liability is actuarially determined
(using the Projected Unit Credit method) at the balance sheet date. Actuarial losses/gains are recognized in other comprehensive income in the year in which
they arise. Remeasurement recognized in other comprehensive income is reflected immediately in retained earnings and is not reclassified to profit or loss.

4. Other Long term employee benefits

Accumulated compensated absences, which are expected to he availed or encashed within 12 months from the end of the year, are treated as short-term
employee benefits. The obligation towards the same is measured at the expected cost of accumulating compensated absences, as the additional amount
expected to be paid as a result of the unused entitlement as at the balance sheet date.

Accumulated compensated absences, which are expected to be availed or encashed beyond 12 months from the end of the year, are treated as other long-term
employee benefits. The Company''s liability is actuarially determined (using the Projected Unit Credit method) at the balance sheet date. Actuarial
losses/gains are recognized in the Profit and Loss Statement in the year in which they arise.

12 Taxes on Income:

Tax expense for the period, comprising current tax and deferred tax, is included in the determination of the net profit or loss for the period. Current tax is
measured at the amount expected to be paid to the tax authorities in accordance with the relevant prevailing tax laws. Tax expenses relating to the items in
profit and loss are treated as current tax as part of profit and loss, while those relating to items in other comprehensive income (OCI) are recognized as part of

Deferred lax is recognized for all temporary differences between the carrying amounts of assets and liabilities in the Special Purpose Standalone Financial
Information and their corresponding tax bases used in the computation of taxable profit. Deferred tax assets are recognized and carried forward only to the
extent that it is probable that taxable profit will be available against which those deductible temporary differences can be utilized. Deferred tax assets and
liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date. At each Balance Sheet
date, the Company re-assesses unrecognized deferred tax assets, if any, and recognizes them to the extent that it has become probable that future taxable
profit will allow the deferred tax asset to be recovered.

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 assets
against liabilities representing current tax, and when the deferred tax assets and the deferred tax liabilities relate to taxes on income levied by the same
governing taxation law.

13 Financial instruments:

Financial assets

Initial recognition and measurement

Financial assets are classified, at initial recognition, as subsequently measured at amortised cost, fair value through other comprehensive income (OCI), and
fair value through profit or loss.

The classification of financial assets at initial recognition depends on the financial asset''s contractual cash flow characteristics and the Company''s business
model for managing them. With the exception of trade receivables that do not contain a significant financing component or for which The Company has
applied the practical expedient, the Company initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through
profit or loss, transaction costs.

m oroer tor a financial asset to oe Classified ana measured at amortised cost or rair vatue tnrougn wc.i, it needs to give rise to casn flows tnat are soieiy
payments of principal and interest (SPP1)'' on the principal amount outstanding. This assessment is referred to as the SPPI test and is performed at an
instrument level. Financial assets with cash flows that are not SPPI are classified and measured at fair value through profit or loss, irrespective of the business
mortal

The Company''s business model for managing financial assets refers to how it manages its financial assets in order to generate cash flows. The business model
determines whether cash flows will result from collecting contractual cash flows, selling the financial assets, or both. Financial assets classified and measured
at amortised cost are held within a business model with the objective to hold financial assets in order to collect contractual cash flows while financial assets
classified and measured at fair value through OCI are held within a business model with the objective of both holding to collect contractual cash flows and
selling.

Purchases or sales of financial assets that require deliver)'' of assets within a time frame established by regulation or convention in the marketplace (regular
way trades) are recognised on the trade date, i.e., the date that The Company commits to purchase or sell tire asset.

Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in four categories:

i) Financial assets at amortised cost (debt instruments)

ii) Financial assets at fair value through other comprehensive income (FVTOCI) with recycling of cumulative gains and losses (debt instruments)

iii) Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon derecognition (equity instalments)

iv) Financial assets at fair value through profit or loss

Financial assets at amortised cost (debt instruments)

A ''financial asset'' is measured at the amortised cost if both the following conditions are met:

a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and

b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount
outstanding

This category is the most relevant to the Company. After initial measurement. aticl)|financial assets are subsequentlvjjSo^i^^^pStqortised cost using the
effective interest rate (EIR) method. Amortised cost is calculated by takin^^hilj&hnwT’lmy discount or premium oH^^uJjstTioiTrrtr^fesJior costs that are an
integral part of the FIR. The EIR amortisation is included in finance h^Cnae in the pnSjrur loss. The losses arisi/gdjdm impairme) recognised in the
profit or loss. The Company''s financial assets at amortised cost includXj^fide receivablesjr" ^ I! uj! CHENNAI j _r . 11

Financial assets at fair value through OC1 (FVTOC1) (debt instruments)

A ''financial asset'' is classified as at the FVTOCI if both of the following criteria are met:

a) The objective of the business model is achieved both by collecting contractual cash flows and selling the financial assets, and

b) The asset''s contractual cash Hows represent SPPI.

Debt instruments included within the FVTOCI category are measured initially as well as at each reporting date at fair value. For debt instruments, at fair
value through OCI, interest income, foreign exchange revaluation and impairment losses or reversals are recognised in the profit or loss and computed in the
same manner as for financial assets measured at amortised cost. The remaining fair value changes are recognised in OCI. Upon derecognition, the cumulative
fair value changes recognised in OCI is reclassified from tire equity to profit or loss.

The Company''s debt instruments at fair value through OCI includes investments in quoted debt instruments included under other non-current financial assets.
Financial assets designated at fair value through OCI (equity instruments)

Upon initial recognition, the Company can elect to classify irrevocably its equity investments as equity instruments designated at fair value through OCI
when they meet the definition of equity under Ind AS 32 Financial Instruments: Presentation and are not held for trading. The classification is determined on
an inslrument-by-instrument basis. Equity instruments which are held for trading and contingent consideration recognised by an acquirer in a business
combination to which Ind AS 103 applies are classified as at FVTPL.

Gains and losses on these financial assets are never recycled to profit or loss. Dividends are recognised as other income in the statement of profit and loss
when the right of payment has been established, except when The Company benefits from such proceeds as a recovery of part of the cost of the financial
asset, in which case, such gains are recorded in OCI. Equity instruments designated at fair value through OCI are not subject to impairment assessment

The Company elected to classify irrevocably its non-listed equity investments under this category.

Financial assets at fair value through profit or loss

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 at fair value through profit or loss are carried in the Special Purpose Standalone Balance Sheet at fair value with net changes in fair value
recognised in the restated summary statement of profit and loss.

This category includes derivative instruments and listed equity investments which the Company had not irrevocably elected to classify at fair value through
OCI. Dividends on listed equity investments are recognised in the restated summary statement of profit and loss when the right of payment has been
established.

Compound financial instruments

The liability component of a compound financial instrument is initially recognised at the fair value of a similar liability that does not have an equity
conversion option. The equity component is initially recognised at the difference between the fair value of the compound financial instrument as a whole and
the fair value of the liability component. Any directly attributable transaction costs are allocated to the liability and equity components in proportion to their
initial carrying amounts.

Subsequent to initial recognition, the liability component of a compound financial instrument is measured at amortised cost using the effective interest
method. The equity component of a compound financial instrument is not measured subsequently.

Interest related to the financial liability is recognised in profit or loss (unless it qualifies for inclusion in cost of asset). In case of conversion at maturity, the
financial liability is reclassified to equity and no gain or loss is recognised.

Embedded Derivatives

A derivative embedded in a hybrid contract, with a financial liability or non-financial host, is separated from the host and accounted for as a separate
derivative if: the economic characteristics and risks are not closely related to the host; a separate instrument with the same terms as the embedded derivative
would meet the definition of a derivative; and the hybrid contract is not measured at fair value through profit or loss.

Embedded derivatives are measured at fair value with changes in fair value recognised in profit or loss. Reassessment only occurs if there is either a change
in the terms of the contract that significantly modifies the cash flows that would otherwise be required or a reclassification of a financial asset out of the fair
value through profit or loss category.

Derecognition of Financial Assets

A financial asset (or, where applicable, a part of a financial asset or part of a Group of similar financial assets) is primarily derecognised (i.e. removed from
The Company''s balance sheet) when:

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

ii) The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without
material delay to a third party under a ''pass-through'' arrangement; and either (a) the Company has transferred substantially all the risks and rewards of the
asset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset but has transferred control of the asset.

When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if and to what
extent it has retained the risks and rewards of ownership.

When it has neither transferred nor retained substantially all the risks and rewards of the asset nor transferred control of the asset, the Company continues to
recognise the transferred asset to the extent of The Company''s continuing involvement. In that case, the Company also recognises an associated liability. The
transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset
and the maximum amount of consideration that the Company could be required to repay.

Impairment of Financial Assets

The Company recognises an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value through profit or loss. ECLs are based
on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that The Company expects to receive,
discounted at an approximation of the original effective interest rate. The expected cash flows will include cash flows from the sale of collateral held or other
credit enhancements that are integral to the contractual terms.

ECLs are recognised in two stages:

For credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result
from default events that are possible within the next 12 months (a 12-month ECL).

For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses
expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL).

For trade receivables and other Financial assets, The Company applies a simplified approach in calculating ECLs. Therefore, the Company does not track
changes in credit risk but instead recognises a loss allowance based on lifetime ECLs at each reporting date. The Company has established a provision matrix
that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment.

Financial Liabilities

Initial Recognition and Measurement

Financial liabilities arc classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables, or as
derivatives designated as hedging instruments in an effective hedge, as appropriate.

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.
The Company''s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts, financial guarantee contracts, and
derivative financial instruments.

Subsequent Measurement

For purposes of subsequent measurement, financial liabilities are classified in two categories:

• Financial Liabilities at Fair Value through Profit or Loss

• Financial Liabilities at Amortised Cost (Loans and Borrowings) -^£^''7^7^55.

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Financial Liabilities at Fair Value through Profit or Loss.

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition
as at fair value through profit or loss.

Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. This category also includes
derivative financial instruments entered into by The Company that are not designated as hedging instruments in hedge relationships as defined by Ind AS
109. Separated embedded derivatives are also classified as held for trading unless they are designated as effective hedging instruments.

Gains or losses on liabilities held for trading are recognised in the profit or loss.

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated as such at the initial date of recognition, and only if
the criteria in Ind AS 109 are satisfied. For liabilities designated as FVTPL, fair value gains/ losses attributable to changes in own credit risk are recognized in
OCI. These gains/ losses are not subsequently transferred to P&L. However, the Company may transfer the cumulative gain or loss within equity. All other
changes in fair value of such liability are recognised in the restated summary statement of profit and loss. The Company has not designated any financial
liability as at fair value through profit or loss.

Financial Liabilities at Amortised Cost (Loans and Borrowings)

This is the category most relevant to the Company. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised
cost using the E1R method.

Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the E1R amortisation process.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the E1R. The EIR
amortisation is included as finance costs in the restated summary statement of profit and loss.

This category generally applies to borrowings.

Financial Guarantee Contract

Financial guarantee contracts issued by the Company are those contracts that require a payment to be made to reimburse the holder for a loss it incurs
because the specified debtor fails to make a payment when due in accordance with the terms of a debt instrument.

Financial guarantee contracts are recognised initially as a liability at fair value, adjusted for transaction costs that are directly attributable to the issuance of
the guarantee.

Subsequently, the liability is measured at the higher of the amount of loss allowance determined as per impairment requirements of Ind AS 109 and the
amount recognised less, when appropriate, the cumulative amount of income recognised in accordance with the principles of Ind AS 115.

Derecognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires.

When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are
substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability.

The difference in the respective carrying amounts is recognised in the restated summary statement of profit and loss.

Offsetting of Financial Instruments

Financial assets and financial liabilities are offset and the net amount is reported in the Special Purpose Standalone Balance Sheet if there is a currently
enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities
simultaneously.

Derivative Financial Instruments and Hedge Accounting

Initial Recognition and Subsequent Measurement

in order to hedge its exposure to commodity price risks, The Company enters into futures and option contracts. The Company does not hold derivative
financial instruments for speculative purposes. Such derivative financial instruments are initially recognised at fair value on the date on which a derivative
contract is entered into and are subsequently re-measured at fair value. Derivatives are carried as financial assets when the fair value is positive and as
financial liabilities when the fair value is negative.

Any gains or losses arising from changes in the fair value of derivatives are taken directly to the statement of profit and loss. Hedges that meet the strict
criteria for hedge accounting are accounted for, as described below:

i) Fair Value Hedges

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in the statement of profit and loss immediately,
together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk. When an unrecognised firm commitment is
designated as a hedged item, the subsequent cumulative change in the fair value of the firm commitment attributable to the hedged risk is recognised as an
asset or liability with a corresponding gain or loss recognised in the statement of profit and loss.

Hedge accounting is discontinued when the Company revokes the hedge relationship, the hedging instrument or hedged item expires or is sold, terminated,
or exercised or no longer meets the criteria for hedge accounting.

14 Fair Value:

Fair value represents the price at which an asset could be sold or a liability could be settled in an orderly transaction between market participants as of the
measurement date. The determination of fair value assumes that the transaction occurs either:

In the principal market where the asset or liability is most actively traded, or

If a principal market is unavailable, in the most advantageous market that provides the best possible price for the asset or liability.

The Company must have access to the principal or most advantageous market for fair value measurement.

Fair value is estimated based on the assumptions that market participants would apply when pricing the asset or liability, considering their economic best
interest. For non-financial assets, fair value measurement reflects the asset''s highest and best use, meaning the way it would generate the maximum
economic benefit—either through its use or by selling it to another market participant who would optimize its utility.

The Company applies valuation techniques that are appropriate for the circumstances and supported by sufficient data, prioritizing observable inputs while
minimizing reliance on unobservable inputs.

All assets and liabilities measured or disclosed at fair value in the financial statements are classified into a three-tier hierarchy based on the lowest level of
input significant to the measurement:

Level 1 - Market prices quoted in active markets for identical assets or liabilities, without adjustments.

Level 2 - Valuation models relying on observable market data, either directly or indirectly.

Level 3 - Valuation methods based on unobservable inputs, where market data is not readily available.

For assets and liabilities subject to recurring fair value measurement, The Company assesses any movement between hierarchy levels at each reporting date
based on the lowest level of significant input used in the valuation.

For fair value disclosures, the Company categorizes assets and liabilities based on their nature, characteristics, and associated risks, aligning them with the
fair value hierarchy outlined above.

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15 Government Grants:

Income comprises export incentives and other recurring and non-recurring benefits received from the government, collectively referred to as "incentives."
Government grants represent financial assistance provided by the government in the form of resource transfers to an entity, based on past or future
compliance with specific conditions related to its operating activities. The Company qualifies for government subsidies for manufacturing units situated in
designated regions.

Government grants are recognized when there is reasonable assurance that The Company will meet the specified conditions and receive the grant. These
grants are recorded in the Statement of Profit and Loss either systematically, in line with the recognition of related expenses they are intended to offset, or
immediately if the corresponding costs have already been incurred.

Grants related to assets are deferred and amortized over the asset''s useful life. Grants linked to income are shown as a reduction against the associated
expenditure, while grants provided as incentives without any ongoing performance obligations are recognized as income in the period they are received.