2. Significant Accounting Policies

I. Basis of Preparation of financial statements

(a) Statement of compliance

These Financial statements are prepared in accordance with Indian Accounting Standards (Ind AS)
notified under Companies (Indian Accounting Standards) Rules, 2015 (as amended from time to time)
notified under Section 133 of the Companies Act, 2013 (‘Act') and other relevant provisions of the Act,
as applicable.

The financial statements are authorized for issue by the Board of Directors of the Company at their
meeting held on May 20, 2025

(b) Functional and presentation currency

These financial statements are presented in Indian Rupees (Rs.), which is also the Company's functional
currency.

(c) Basis of measurement

These financial statements are prepared under the historical cost convention on the accrual basis
except for certain financial assets and liabilities measured at fair value (refer accounting policy regarding
financial instruments).

(d) Use of estimates and judgments

The preparation of the Company's financial statements requires management to make judgments,
estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities,
and the accompanying disclosures, and the disclosure of contingent liabilities. Estimates and underlying
assumptions are reviewed on an ongoing basis. Uncertainty about these assumptions and estimates
could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities
affected in future periods. The application of accounting policies that require critical accounting estimates
involving complex and subjective judgments and the use of assumptions in these financial statements
have been disclosed below. 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. The changes in the 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.

II. Revenue from contract with customer

Revenue is recognised when the Company satisfies a performance obligation by transferring a promised
good or service to the customer, which is when the customer obtains control of the good or service. A
performance obligation may be satisfied at a point in time or over time. The amount of revenue recognised is

the amount allocated to the satisfied performance obligation. Revenue is recognised only when it can be
reliably measured, and it is probable that future economic benefits will flow to the company. Revenue from
operations includes sales of goods, services, scrap, commission, export incentives. Revenue excludes
Goods and Service Tax amount collected on behalf of third parties.

Sale of Goods

Revenue from sale of manufactured and traded goods is recognised when a promise in a customer contract
(performance obligation) has been satisfied by transferring control over the promised goods to the customer.
The control of goods is usually transferred to customer depending upon the incoterms or as agreed with
customer upon shipment, delivery to the customer, in accordance with the delivery and acceptance terms
agreed with the customers. Control over a promised good refers to the ability to direct the use of, and obtain
substantially all of the remaining benefits from, those goods.

Revenue is measured based on transaction price, which is the fair value of the consideration received or
receivable, stated net of rebates, discounts, returns, indirect taxes or any other similar allowances. Transaction
price is recognised based on the price specified in the contract, net of the sales discounts.

Incentives are accounted based on the assessment of whether the beneficiary (of the incentive) is acting as
a principal or an agent. Where the beneficiary is a principal, the incentive is regarded as consideration paid
to the customer and is reduced from revenue. However, where the beneficiary is an agent, the incentive
payment is recognised as an expense as the same is in the nature of commission.

Advance received from customer before transfer of control of goods to the customer is recognised as contract
liability.

III. Property, Plant and Equipment

Property, plant and equipment are stated at acquisition cost, less accumulated depreciation and accumulated
impairment loss, if any. The cost of Property, Plant & Equipment comprises of its purchase price, including
import duties and other non-refundable taxes or levies and any directly attributable cost of bringing the asset
to its working condition for its intended use. Interest and other financial charges on loans borrowed specifically
for acquisition of capital assets are capitalised till the start of commercial production.

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' Assets and the cost of assets not
put to use before such date are disclosed under ‘Capital Work in Progress'

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.

Leasehold land is amortised on a straight-line basis over the unexpired period of their respective lease
ranging from 70-99 years.

IV. Intangible Assets

Intangible Assets acquired separately are measured on initial recognition at cost. Intangible Assets acquired
in a business combination is valued at their fair value at the date of acquisition. Following initial recognition,
intangible assets are carried at cost less accumulated amortization and accumulated impairment losses, if
any.

The useful lives of Intangible Assets are assessed as either finite or indefinite.

Intangible Assets with finite lives are amortized over the useful economic life and assessed for impairment
whenever there is an indication that the intangible asset may be impaired. The amortization period and the
amortization method for an Intangible Asset with a finite useful life are reviewed at the end of each reporting
period. The amortization expense on Intangible Assets with finite lives is recognized in the Statement of
Profit & Loss. The Company amortizes intangible assets over their estimated useful lives using the straight¬
line method.

Intangible Assets with indefinite useful lives are not amortized, but are tested for impairment annually, either
individually or at the cash-generating unit level. The assessment of indefinite life is reviewed annually to
determine whether the indefinite life continues to be supportable. If not, the change in useful life from indefinite
to finite is made on a prospective basis.

Gains or losses arising from derecognition of an intangible asset are measured as the difference between
the net disposal proceeds and the carrying amount of the asset and are recognized in the Statement of Profit
& Loss when the asset is derecognized.

V. Inventories

Inventories are valued at cost or net realisable value whichever is lower except for saleable scraps, whose
cost is not identifiable, which are valued at estimated net realisable value. Closing stock has been valued on
Weighted Average basis. Cost comprises expenditure incurred in the normal course of business in bringing
such inventories to its location and includes, where applicable, appropriate overheads based on normal
level of activity. Net realisable value is the estimated selling price in the ordinary course of business, less
estimated costs of completion and the estimated costs necessary to make the sale.

VI. Financial Instruments

Initial recognition and measurement

The Company recognizes financial assets and financial liabilities when it becomes a party to the contractual
provisions of the instrument. All financial assets and liabilities are recognized at fair value on initial recognition,
except for trade receivables which are initially measured at transaction price. Transaction costs that are
directly attributable to the acquisition or issue of financial assets and financial liabilities, which are not at fair
value through profit or loss, are added to the fair value on initial recognition. Regular way purchase and sale
of financial assets are accounted for at trade date.

Subsequent measurement

i. Non derivative financial instruments

(i) Financial assets carried at amortized cost

A financial asset is subsequently measured at amortized cost if it is held within a business model
whose objective is to hold the asset in order to collect contractual cash flows and the contractual

terms of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.

(ii) Financial assets at fair value through other comprehensive income

A financial asset is subsequently measured at fair value through other comprehensive income if it
is held within a business model whose objective is achieved by both collecting contractual cash
flows and selling financial assets and the contractual terms of the financial asset give rise on
specified dates to cash flows that are solely payments of principal and interest on the principal
amount outstanding. The Company has made an irrevocable election for its investments which are
classified as equity instruments to present the subsequent changes in fair value in other
comprehensive income based on its business model.

(iii) Financial assets at fair value through profit or loss

A financial asset which is not classified in any of the above categories are subsequently fair valued
through profit or loss.

(iv) Financial liabilities

Financial liabilities are subsequently carried at amortized cost using the effective interest method,
except for contingent consideration recognized in a business combination which is subsequently
measured at fair value through profit and loss. For trade and other payables maturing within one
year from the Balance Sheet date, the carrying amounts approximate fair value due to the short
maturity of these instruments.

ii. Derivative financial instruments

The Company holds derivative financial instruments such as foreign exchange forward and option
contracts to mitigate the risk of changes in exchange rates on foreign currency exposures. Such derivative
financial instruments are initially recognized at fair value on the date on which a derivative contract is
entered into and are subsequently re-measured at fair value through profit or loss and the resulting
exchange gains or losses are included in other income.

Derecognition of financial instruments

The company derecognizes a financial asset when the contractual rights to the cash flows from the financial
asset expire or it transfers the financial asset and the transfer qualifies for derecognition under Ind AS 109.
A financial liability (or a part of a financial liability) is derecognized from the Company's Balance Sheet when
the obligation specified in the contract is discharged or cancelled or expires.

VII. Fair value measurement

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 under current market conditions.

The Company categorizes assets and liabilities measured at fair value into one of three levels depending on
the ability to observe inputs employed for such measurement:

a) Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

b) Level 2: inputs other than quoted prices included within level 1 that are observable either directly or
indirectly for the asset or liability.

c) Level 3: inputs for the asset or liability which are not based on observable market data.

VIII. Impairment

Impairment is recognized based on the following principles:

Financial Assets

The Company recognizes loss allowances using the Expected Credit Loss (ECL) model for the financial
assets which are not fair valued through profit or loss. Loss allowance for trade receivables with no significant
financing component is measured at an amount equal to life time ECL. For all other financial assets, expected
credit losses are measured at an amount equal to the 12month ECL, unless there has been a significant
increase in credit risk from initial recognition in which case those are measured at life time ECL. The amount
of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to
the amount that is required to be recognized is recognized as an impairment gain or loss in profit or loss.

Non-Financial Assets

Goodwill and intangible assets that have an indefinite useful life are not subject to amortization and are
tested annually for impairment, or more frequently if events or changes in circumstances indicate that they
might be impaired. Other assets are tested for impairment whenever events or changes in circumstances
indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount
by which the assets carrying amount exceeds its recoverable amount. The recoverable amount is the higher
of an assets fair value less costs of disposal and value in use. For the purpose of assessing impairment,
assets are grouped at the lowest level for which there are separately identifiable cash inflows which are
largely independent of the cash inflows from other assets or groups of assets (cash generating unit) non¬
financial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the
impairment at the end of reporting period.