B Material Accounting Policies

(i) Statement of compliance

The Financial Statements of the Company have been
prepared in accordance with the Indian Accounting
Standards (Ind 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.

(ii) Basis of preparation

(a) The financial statements have been prepared
on accrual basis under the historical cost
convention except for certain financial
instruments which are measured at fair
value at the end of each reporting period,
as explained in the accounting policies
mentioned below.

Historical cost is generally based on the fair
value of the consideration given in exchange
for goods or services.

Fair value is the price that would be received
on selling of 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.

(b) All assets and liabilities have been classified
as current or non-current according to
the Company’s operating cycle and other
criteria set out in the Act. Based on the
nature of products and the time between the
acquisition of assets for processing and their
realisation in cash and cash equivalents, the
Company has ascertained its operating cycle
as twelve months

(iii) Recent accounting pronouncements

Ministry of Corporate Affairs (“MCA”) notifies new
standards or amendments to the existing standards
under Companies (Indian Accounting Standards)
Rules as issued from time to time. There is no such
notification which would have been applicable from
April 01, 2025.

(iv) Property, plant and equipment (PPE)

Property, plant and equipment are stated at cost
of acquisition or construction less accumulated
depreciation and accumulated impairment losses, if
any.

The Company has elected to continue with the
carrying value of all of its Property, plant and
equipment recognised as on April 1, 2016 measured
as per the previous GAAP and use that carrying
value as its deemed cost as on transition date.

Cost of acquisition or construction is inclusive
of freight, duties, relevant taxes (other than those
subsequently recoverable from the tax authorities),
incidental expenses and interest on loans attributable
to the acquisition of qualifying assets up to the date
the asset is ready for its intended use.

Such cost includes the cost of replacing part of
the plant and equipment and borrowing costs for
qualifying assets up to the date the asset is ready for
its intended use.

Subsequent expenditure on property, plant and
equipment after its purchase/completion is
capitalised only if such expenditure results in an
increase in the future economic benefits from such
asset beyond its previously assessed standard of
performance. All other repair and maintenance costs
are recognised in the statement of profit and loss as
incurred.

Assets are classified to the appropriate categories of
property, plant and equipment when completed and
ready for its intended use.

Capital Work in Progress: Project under which
assets are not yet ready for their intended use are
carried at cost comprising direct cost, related
incidental expenses and attributable interest.

Depreciation

Depreciable amount for assets is the cost of an
asset, or other amount substituted for cost, less its
estimated residual value.

Depreciation has been provided on the cost of
assets less their residual values using the straight¬
line method on the basis of estimated useful life
of the assets determined by the Company which
are different from the useful life as prescribed
in Schedule II of the Companies Act, 2013. The
estimated useful life of the assets have been assessed
based on taking into account the nature of the asset,
the estimated usage of the asset, the operating
conditions of the asset, past history of replacement,
anticipated technological changes and maintenance
support, etc. The estimated useful lives as assessed
and considered for depreciation are as under:

Depreciation on additions is provided on a pro¬
rata basis from the date of acquisition/installation.
Depreciation on sale/deduction from fixed assets is
provided for up to the date of sale/adjustment, as the
case may be.

An item of property, plant and equipment or any
significant part initially recognised of such item of
property plant and equipment is derecognised upon
disposal or when no future economic benefits are
expected from its use or disposal. Any gain or loss
arising on derecognition of the asset (calculated as
the difference between the net disposal proceeds
and the carrying amount of the asset) is included in
the statement of profit and loss when the asset is
derecognised.

The estimated useful lives and methods of
depreciation of property, plant and equipment
are reviewed at end of each reporting period and
adjusted prospectively, if appropriate.

(v) Intangible Assets

Intangible assets acquired separately are measured
on initial recognition at cost.

Following initial recognition, intangible assets are
carried at cost less any accumulated amortisation
and accumulated impairment losses, if any.

Intangible assets are amortised over their
respective useful lives on a straight line basis from
the date they are available for use. The estimated
useful life of an identifiable intangible assets is
based on a number of factors including the effects
of obsolescence, demand, competition and other
economic factors (such as the stability of the
industry and known technological advances) and
the level of maintenance expenditures required
to obtain the expected future cash flows from the
asset.

Software and other intangibles is amortised
over 3-7 years, depending on its estimated
useful life, on a straight-line basis.
The Company has elected to continue with the
carrying value of all of its intangibles assets
recognised as on April 1, 2016 measured as per the
previous GAAP and use that carrying value as its
deemed cost as on transition date.

The amortisation period and the amortisation method
for an intangible asset are reviewed at the end of
each reporting period. Changes in the expected
useful life or the expected pattern of consumption
of future economic benefits embodied in the asset
are considered to modify the amortisation period or

method, as appropriate, and are treated as changes
in accounting estimates.

An intangible asset is derecognised on disposal
or when no future economic benefits are expected
from use or disposal. 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 recognised
in the statement of profit and loss when the asset is
derecognised.

(vi) Impairment of tangible and intangible assets

At the end of each reporting period, the Company
reviews the carrying amounts of its tangible and
intangible 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). 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 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 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
recognised immediately in the statement of profit
and 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 recognised for the asset (or
cash-generating unit) in prior years. A reversal of
an impairment loss is recognised immediately in the
statement of profit and loss.

(vii) Borrowing costs

Borrowing costs are recognised in the statement
of profit and loss in the period in which they are
incurred until they meet the criteria of being
capitalized on qualifying assets.

(viii) Leasing
Company as lessee:

The Company’s lease asset classes primarily consist
of leases for land and buildings. The Company
assesses whether a contract contains a lease, at
inception of a 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 assesses whether:
(i) the contract involves the use of an identified
asset (ii) the Company has substantially all of the
economic benefits from use of the asset through the
period of the lease and (iii) the Company has the
right to direct the use of the asset.

At the date of commencement of the lease, the
Company recognizes a right-of-use asset (“ROU”)
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 low value leases. For these short¬
term and low value leases, the Company recognizes
the lease payments as an operating expense on a
straight-line basis over the term of the lease.

Certain lease arrangements includes the options to
extend or terminate the lease before the end of the
lease term. ROU assets and lease liabilities includes
these options when it is reasonably certain that they
will be exercised.

The right-of-use assets are initially recognized at
cost, which comprises the initial amount of the lease

liability adjusted for any lease payments made at or
prior to the commencement date of the lease plus
any initial direct costs less any lease incentives.
They are subsequently measured at cost less
accumulated depreciation and impairment losses.

Right-of-use assets are depreciated from the
commencement date on a straight-line basis over
the shorter of the lease term and useful life of the
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 the purpose of
impairment testing, 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 rates in the country of domicile of
these leases. Lease liabilities are remeasured with
a corresponding adjustment to the related right of
use asset if the Company changes its assessment
if whether it will exercise an extension or a
termination option.

Lease liability and ROU asset have been separately
presented in the Balance Sheet and lease payments
have been classified as financing cash flows.

(ix) Foreign Currencies

a) Functional and presentation currency

Items included in the financial statements
are measured using the currency of the
primary economic environment in which
the entity operates (i.e. ‘the functional
currency’). The financial statements are
presented in Indian Rupee (rounded in Rs.
in lakhs), the national currency of India,
which is the Company’s functional and
presentation currency.

b) Transaction and balances

Transactions in foreign currencies are
recorded on initial recognition at the
exchange rate prevailing on the date of the
transaction. At the end of each reporting
period, monetary items denominated in
foreign currencies are retranslated at the rates
prevailing at that date. Non-monetary items
that are measured in terms of historical cost
in a foreign currency are not retranslated.

Exchange differences on monetary items are
recognised in the statement of profit and loss
in the period in which they arise.

(x) Inventories

Inventories are valued at cost or net realisable
value, whichever is lower. The basis of determining
the cost for various categories of inventory are as
follows:

(a) Raw materials - Cost includes cost of purchase
and other costs incurred in bringing the inventories
to their present location and condition. Cost is
determined on weighted average basis. Raw
materials and other supplies held for use in the
production of finished products are not written
down below cost except in cases where material
prices have declined and it is estimated that the
cost of the finished products will exceed their net
realisable value.

(b) work in process and finished goods- Lower
of cost or net realizable value. Cost for this
purpose includes material, labour and appropriate
allocation of overheads. Cost is determined
on a weighted average basis. Fixed production
overheads are allocated on the basis of normal
capacity of production facilities.

(c) Stock in trade are valued at lower of cost and
net realisable value. Cost includes all expenses
incurred in bringing the goods to there present
location including other levies, transit insurance
and receiving charges.

(d) Goods in transit are valued at cost.

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.