B. Significant Accounting Policies

B.1 Basis of Preparation and Presentation

B.1.1 Statement of Compliance

The financial statements comply in all material aspects with Indian Accounting Standards (Ind AS)
notified under Section 133 of the Companies Act, 2013 read with Rule 3 of the Companies (Indian
Accounting Standards) Rules, 2015 and the Companies (Indian Accounting Standards) Amendment
Rules, 2016. The financial statements up to year ended March 31, 2024 were prepared in accordance
with the accounting standards notified under Companies (Accounting Standard) Rules, 2006 (as
amended) and other relevant provisions of the Act. Previous period figures in the financial statements
have been restated in Ind AS.

B.1.2 Basis of Measurement

The standalone financial statements have been prepared on a historical cost basis, on the accrual
basis of accounting except for certain financial assets and liabilities measured at fair value at the end
of each reporting period, as explained in relevant schedule notes.

B.1.3 Functional and presentation currency

Indian rupee is the functional and presentation currency.

B.1.4 Use of estimates

The preparation of the financial statements in conformity with Ind AS requires management to make
estimates, judgments and assumptions.

These estimates, judgments and assumptions affect the application of accounting policies and the
reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the
date of the financial statements and reported amounts of revenues and expenses during the period.

Accounting estimates could change from period to period. Actual results could differ from those
estimates. Appropriate changes in estimates are made as management becomes aware of changes in
circumstances surrounding the estimates. Changes in estimates are reflected in the financial
statements in the period in which changes are made and, if material, their effects are disclosed in the
notes to the financial statements.

Application of accounting policies that require critical accounting estimates involving complex and
subjective judgments and the use of assumptions in these financial statements are:

- Useful lives of Property, plant and equipment

- Valuation of financial instruments

- Provisions and contingencies

- Income tax and deferred tax

- Measurement of defined employee benefit obligations

- Export Incentive

B.2 Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the
Company and the revenue can be reliably measured. Revenue is measured at the fair value of the
consideration received or receivable.

B.2.1 Sale of Goods

Revenue from sale of goods is recognized when the Company transfers all significant risks and
rewards of ownership to the buyer, while the Company retains neither continuing managerial
involvement nor effective control over the products sold.

B.3 Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying
assets, which are assets that necessarily take a substantial period of time to get ready for their
intended use, are added to the cost of those assets, until such time as the assets are substantially
ready for their intended use. All other borrowing costs are recognised in profit or loss in the period in
which they are incurred.

B.4 Property, Plant and Equipment
Cost:

Property, plant and equipment are stated at cost, net of accumulated depreciation and accumulated
impairment losses, if any.

The cost comprises the purchase price, borrowing cost if capitalization criteria are met and directly
attributable cost of bringing the asset to its working condition for its intended use. Any trade
discounts and rebates are deducted in arriving at the purchase price.

Subsequent expenditures 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.

All other expenses on existing fixed assets, including day-to-day repair and maintenance expenditure
and cost of replacing parts, are charged to the statement of profit and loss for the period during
which such expenses are incurred.

Properties in the course of construction for production, supply or administrative purposes are carried
at cost, less any recognised impairment loss. Cost includes professional fees and, for qualifying
assets, borrowing costs capitalised 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.

Depreciation methods, estimated useful lives and residual value

Depreciation on property, plant and equipment is provided using the written down method based on
the useful life of the assets as estimated by the management and is charged to the Statement of
Profit and Loss as per the requirements of Schedule II of the Act. The estimate of the useful life of
the assets has been assessed based on technical advice which considered the nature of the asset, the
usage of the asset, expected physical wear and tear, the operating conditions of the asset,
anticipated technological changes, manufacturers warranties and maintenance support, etc.

Depreciation on items of property, plant and equipment acquired / disposed off during the year is
provided on pro-rata basis with reference to the date of addition / disposal. Cost of lease-hold land is
amortized equally over the period of lease.

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

De-recognition:

An item of property, plant and equipment is derecognised upon disposal or when no future economic
benefits are expected to arise from the continued use of the asset. Any gains or losses arising from
derecognition of fixed assets are measured as the difference between the net disposal proceeds and
the carrying amount of the asset at the time of disposal and are recognized in the statement of profit
and loss.

B.5 Impairment Losses

At the end of each reporting period, the Company determines whether there is any indication that its
assets (property, plant and equipment, intangible assets and investments in equity instruments in
subsidiaries carried at cost) have suffered an impairment loss with reference to their carrying
amounts. If any indication of impairment exists, the recoverable amount (i.e. higher of the fair value
less costs of disposal and value in use) of such assets is estimated and impairment is recognised, if
the carrying amount exceeds the recoverable amount.

When it is not possible to estimate the recoverable amount of an individual asset, the Company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.

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

B.6 Inventories

Inventories are taken as verified, valued and certified by the management. Inventories are stated at
lower of cost and net realisable value.

Cost of inventories is determined as follows: Shares
- At lower of cost or net realizable value