J. Contingent Liabilities and Contingent Assets

A contingent liability is a possible obligation that arises from past events whose existence will be
confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the
control of the company or a present obligation that is not recognized because it is not probable
that an outflow of resources will be required to settle the obligation. A contingent liability also
arises in extremely rare cases where there is a liability that cannot be recognized because it cannot
be measured reliably. The company does not recognize a contingent liability but discloses its
existence in the financial statements.

Contingent assets are only disclosed when it is probable that the economic benefits will flow to the
entity.

K. Investment Property

Properties, including those under construction, held to earn rentals and/or capital appreciation are
classified as investment property and measured and reported at cost, including transaction costs.

Depreciation is recognized using Straight-Line method so as to write off the cost of the investment
property less their residual values over their useful lives specified in Schedule II to the Companies
Act, 2013 or in case of assets where the useful life was determined by technical evaluation, over the
useful life so determined. Depreciation method is reviewed at each financial year end to reflect the
expected pattern of consumption of the future benefits embodied in the investment property. The
estimated useful life and residual values are also reviewed at each financial year end and the effect
of any change in the estimates of useful life/ residual value is accounted on prospective basis.
Freehold land and properties under construction are not depreciated.

An investment property is derecognized upon 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permanently withdrawn from use and no future economic benefits are expected from the disposal.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 derecognizing of property is recognized in the Statement of Profit and
Loss in the same period.

L. Inventories

Inventories which comprise raw material, work in progress, finished goods, traded goods and stores
and spares are valued at the lower of cost and net realizable value. The basis of determining costs
for various categories of inventories is as follows:

i Raw Materials

Raw Material is valued at lower of cost or net realizable value. Cost ascertained on FIFO Basis
includes all the purchase price, duties and taxes which are not recoverable from government
authorities, freight inwards and other expenditure directly attributable to the acquisition.

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

ii Stores & Spares and Consumables

It includes cost of purchase and other costs incurred in bringing the inventories to their
present location and condition.

iii Work-In-Progress

Lower of cost and net realizable value. Cost includes direct materials and labour and a
proportion of manufacturing overheads based on normal operating capacity.

iv Traded Goods

Lower of cost and net realizable value. Cost ascertained on FIFO Basis includes all the
purchase price, duties and taxes which are not recoverable from government authorities,
freight inwards and other costs incurred in bringing to their present location and condition.

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

M. Financial Instruments

i. Initial Recognition

Financial instruments i.e. Financial Assets and Financial Liabilities are recognized when the
Company becomes a party to the contractual provisions of the instruments. Financial
instruments are initially measured at fair value. Transaction costs that are directly
attributable to the acquisition or issue of financial instruments (other than financial
instruments at fair value through profit or loss) are added to or deducted from the fair value
of the financial instruments, as appropriate, on initial recognition. Transaction costs directly
attributable to the acquisition of financial instruments assets or financial liabilities at fair
value through profit or loss are recognized in profit or loss.
ii Financial Assets

Subsequent Measurement

All recognized financial assets are subsequently measured at amortized cost using effective
interest method except for financial assets carried at fair value through Profit and Loss
(FVTPL) or fair value through Other Comprehensive Income (FVTOCI).

1) Equity Investments in Subsidiaries, Associates and Joint Venture

The Company accounts for its investment in subsidiaries, joint ventures and associates
and other equity investments in subsidiary companies at cost in accordance with Ind AS
27 - 'Separate Financial Statements'.

2) Equity Investments (other than investments in subsidiaries, associates and joint
venture)

All equity investments falling within the scope of Ind-AS 109 are mandatorily measured
at Fair Value through Profit and Loss (FVTPL) with all fair value changes recognized in
the Statement of Profit and Loss.

The Company has an irrevocable option of designating certain equity instruments as
FVTOCI. Option of designating instruments as FVTOCI is done on an instrument-by¬
instrument basis. The classification made on initial recognition is irrevocable.

If the Company decides to classify an equity instrument as FVTOCI, then all fair value
changes on the instrument are recognized in the Statement of Other Comprehensive
Income (SOCI). Amounts from SOCI are not subsequently transferred to profit and loss,
even on sale of investment.

3) Investment in Preference Shares

Investment in preference shares are classified as debt instruments and carried at
amortized cost if they are not convertible into equity instruments and are not held to
collect contractual cash flows. Other Investment in preference shares which are
classified as debt instruments are carried at FVTPL.

Investment in convertible preference shares of subsidiary, associate and joint venture
companies are treated as equity instruments and carried at cost. Other Investment in
convertible preference shares which are classified as equity instruments are mandatorily
carried at FVTPL.

4) De-recognition

A financial asset is primarily derecognized when the rights to receive cash flows from
the asset have expired, or 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 with
that-

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.

5) Impairment of Financial Assets

The Company assesses at each date of balance sheet whether a financial asset or a
group of financial assets is impaired. Ind AS 109 requires expected credit losses to be
measured through a loss allowance. The Company recognizes lifetime expected losses
for all trade receivables and/or contract assets that do not constitute a financing
transaction. For all other financial assets, expected credit losses are measured at an
amount equal to the 12 month expected credit losses or at an amount equal to the life
time expected credit losses if the credit risk on the financial asset has increased
significantly since initial recognition.

iii Financial Liabilities

Classification

Financial liabilities and equity instruments issued by the Company are classified according to
the substance of the contractual arrangements entered into and the definitions of a financial
liability and an equity instrument.

Subsequent measurement

The company have all the borrowings at floating interest rate. Being variable interest rate, it is
not possible to estimate future cash flows. Borrowings are recognized initially at an amount
equal to the principal receivable or payable on maturity. So, re-estimating the future cash
flows has no significant impact on the carrying value of Borrowings. Transaction costs are not
material to be included in the EIR calculation. So the carrying value is being considered as
amortized cost for all the borrowings bearing a floating interest rate. For trade and other
payables maturing within one year from the balance sheet date, the carrying are amortized
Cost.

Financial Liabilities recognized at FVTPL, including derivatives, are subsequently measured at
fair value.

1) Compound Financial Instruments

Compound financial instruments issued by the company is an instrument which creates
a financial liability on the issuer and which can be converted into fixed number of
equity shares at the option of the holders.

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

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

2) Financial Guarantee Contracts

Financial guarantee contracts are initially recognized as a liability at fair value. The
liability is subsequently measured at carrying amount less amortization or amount of
loss allowance determined as per impairment requirements of Ind AS 109, whichever is
higher. Amortization is recognized as finance income in the Statement of Profit and
Loss.

3) De-Recognition

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

Offsetting Financial Instruments

Financial assets and liabilities are offset and the net amount is reported in the balance
sheet where there is a legally enforceable right to offset the recognized amounts and
there is an intention to settle on a net basis or realize the asset and settle the liability
simultaneously.

Re-classification of Financial Instruments

The Company determines classification of financial assets and liabilities on initial
recognition. After initial recognition, no re-classification is made for financial assets,
such as equity instruments designated at FVTPL or FVTOCI and financial liabilities or
financial assets which are debt instruments, a reclassification is made only if there is a
change in the business model for managing those assets.

N. Revenue Recognition
i Revenue

Revenue from contracts with customers is recognized when control of the goods is transferred to the
customer at an amount that reflects the consideration to which the Company expects to be entitled in
exchange for those goods or services. The Company has generally concluded that it is the principal in
its revenue arrangements because it typically controls the goods before transferring them to the
customer.

Sale of Goods

Revenue from sale of products is recognized at the point in time when control of the asset is
transferred to the customer.

2) Insurance & Other Claims

Revenue in respect of claims is recognized when no significant uncertainty exists with regard
to the amount to be realized and the ultimate collection thereof.

ii Contract Balances
1. Contract Assets

A contract asset is the right to consideration in exchange for goods or services transferred to
the customer. If the Company performs by transferring goods or services to a customer before
the customer pays consideration or before payment is due, a contract asset is recognized for
the earned consideration that is conditional.

Contract assets represent revenue recognized in excess of amounts billed and include unbilled
receivables. Unbilled receivables, which represent an unconditional right to payment subject
only to the passage of time, are reclassified to accounts receivable when they are billed under
the terms of the contract.

2) Trade Receivables

A receivable represents the Company's right to an amount of consideration that is
unconditional (i.e., only the passage of time is required before payment of the consideration is
due).

3) Contract Liabilities

A contract liability is the obligation to transfer goods or services to a customer for which the
Company has received consideration (or an amount of consideration is due) from the
customer. If a customer pays consideration before the Company transfers goods or services to
the customer, a contract liability is recognized when the payment is made, or the payment is
due (whichever is earlier). Contract liabilities are recognized as revenue when the Company
performs under the contract.

Contract liabilities include unearned revenue which represent amounts billed to clients in
excess of revenue recognized to date and advances received from customers. For contracts
where progress billing exceeds, the aggregate of contract costs incurred to date plus
recognized profits (or minus recognized losses, as the case may be), the surplus is shown as
contract liability and termed as unearned revenue. Amounts received before the related work
is performed are disclosed in the balance sheet as contract liability and termed as advances
received from customers.

Interest income on bank deposits and advances to vendors is recognized on a time proportion
basis taking into account the amount outstanding and the applicable interest rate. Interest
income is included under the head "Other Income" in the statement of profit and loss.

O. Borrowing Costs

Borrowing costs that are directly attributable to the acquisition, construction or production of
a qualifying asset are capitalized during the period of time that is required to complete and
prepare the asset for its intended use or sale. Qualifying assets are assets that necessarily take
a substantial period of time to get ready for their intended use or sale.

i Borrowing Cost under Service Concession Arrangements

Borrowing costs attributable to the construction of qualifying assets under service concession
arrangement classified as intangible asset, are capitalized to the date of its intended use.
Borrowing costs attributable to concession arrangement classified as financial assets are
charged to Statement of Profit and Loss in the period in which such costs are incurred.

ii Other borrowing costs are charged to Statement of Profit and Loss in the period in which
they are incurred.

P. Provisions

Provisions are recognized when the Company has a present legal or constructive obligation as
a result of past events for which it is probable that an outflow of resources will be required to
settle the obligation and the amount can be reliably estimated as at the balance sheet date.
Provisions are measured based on management's estimate required to settle the obligation at
the balance sheet date and are discounted using a rate that reflects the time value of money.
When discounting is used, the increase in the provision due to the passage of time is
recognized as a finance cost.

Other Litigation Claims

Provision for litigation related obligation represents liabilities that are expected to materialize
in respect of matters in appeal.

Onerous Contracts

A provision for onerous contracts is measured at the present value of the lower expected costs
of terminating the contract and the expected cost of continuing with the contract. Before a
provision is established, the Company recognizes impairment on the assets with the contract.

Q. Taxes

Income tax expense for the period is the tax payable on the current period's taxable income
based on the applicable income tax rate and changes in deferred tax assets and liabilities
attributable to temporary differences. The current income tax charge is calculated in
accordance with the provisions of the Income Tax Act 1961.

Deferred income tax is determined using tax rates (and laws) that have been enacted or
substantially enacted at the end of the reporting period and are expected to apply when the
related deferred income tax asset is realized or the deferred income tax liability is settled.

Deferred tax liabilities are recognized for all taxable temporary differences and deferred tax
assets are recognized for all deductible temporary differences and brought forward losses only
if it is probable that future taxable profit will be available to realize the temporary differences.
Current tax assets and tax liabilities are offset where the entity has a legally enforceable right
to offset and intends either to settle on a net basis, or to realize the asset and settle the
liability simultaneously.

Current and deferred tax is recognized in profit or loss, except to the extent that it relates to
items recognized in other comprehensive income or directly in equity. In this case, the tax is
also recognized in other comprehensive income or directly in equity, respectively.

R. Employee Benefits

Short-Term Employee Benefits

-The undiscounted amount of short-term employee benefits expected to be paid in exchange
for the services rendered by employees are recognised as an expense during the period when
the employees render the services.

Post-Employment Benefits Defined Contribution Plans

The company has not got registration under ESI and EPF Act so not paying any contribution
towards provident fund and ESI.

Defined Benefit Plans

No provisions has been made for Gratuity during the year 2023-24.