ಕಂಪನಿಯ ಅಕೌಂಟಿಗ್ ಪಾಲಿಸಿ Amanta Healthcare Ltd.

NOTE 1:- GENERAL INFORMATION

Amanta Healthcare Limited (‘the Company’),

bearing Corporate Identity Number (CIN)
L24139GJ1994PLC023944, is a public limited company
incorporated in India. The Company is a Sterile liquid
pharmaceutical products manufacturing and formulation
development Company having head quarter at

Ahmedabad, Gujarat, India. It has manufacturing facilities
in the state of Gujarat. The Company manufactures Large
Volume Parenterals (LVPs) and Small Volume Parenteral
(SVPs). The technology deployed for manufacturing is Blow
Fill Seal (BFS), Injection Stretch Blow Molding (ISBM)
and conventional three-Piece line. The product group
comprises of Fluid Therapy, Formulations, Diluents,
Ophthalmic, Respule and Irrigation Solutions, etc.
The Company markets its products in India as well as in the
international market.

The Company does not have subsidiaries or joint ventures
or associate companies and does not prepare Consolidated
Financial Statements.

Basis of Preparation

i. Compliance with Ind AS

The financial statements of the Company have been
prepared to comply in all material aspects with the
Indian Accounting Standards (Ind AS) notified under
Section 133 of the Companies Act, 2013 (the Act),
[Companies (Indian Accounting Standards) Rules, 2015]
(as amended) and other relevant provisions of the Act.

Historical cost convention

The financial statements have been prepared on the
historical cost basis, except for the following:

- Investments in mutual fund are measured at
fair value

- plan assets under defined benefit plans are
measured at fair value

Functional and presentation currency and rounding
of amounts

The Company’s financial statements are reported in
Indian Rupees, which is also the Company’s functional
and presentation currency, and all amounts have been
rounded-off to the nearest lakhs.

New and amended standards adopted by the
Company

The Ministry of Corporate Affairs vide notification
dated May 07, 2025, and August 13, 2025, notified
the Companies (Indian Accounting Standards)
Amendment Rules, 2025 and Companies (Indian

Accounting Standards) Second Amendment Rules,
2025, respectively, which amended certain accounting
standards (see below), and are effective for annual
reporting periods beginning on or after April 01, 2025:

(a) Classification of Liabilities as Current or
Non-current and Non-current Liabilities
with Covenants - Amendments to Ind AS 1

As a result of the adoption of the amendments to Ind
AS 1, the Company changed its accounting policy
for the classification of borrowings: Borrowings
are classified as current liabilities unless, at the
end of the reporting period, the Company has a
right to defer settlement of the liability for at least
12 months after the reporting period.

Covenants that the Company is required to comply
with, on or before the end of the reporting period,
are considered in classifying loan arrangements
with covenants as current or non-current.
Covenants that the Company is required to comply
with after the reporting period do not affect the
classification.

This new policy did not result in a change
in the classification of the Company’s
borrowings. The Company did not make
retrospective adjustments as a result of adopting
the amendments to Ind AS 1.

(b) Supplier Finance Arrangements - Amendments
to Ind AS 7 and Ind AS 107

The Company is not having any supplier
finance arrangements.

(c) International Tax Reform - Pillar Two Model
Rules - Amendments to Ind AS 12

The Company is not within the scope of the OECD
Pillar Two Model Rules, as Pillar Two legislation
is not applicable in the jurisdictions in which it
operatestherefore, the Company does not have
any obligation to pay an effective tax rate top-
up under Pillar Two.

(d) Lack of Exchangeability - Amendments to Ind
AS 21

The amended Ind AS 21 have added requirements
to help entities to determine whether a currency is
exchangeable into another currency, and the spot
exchange rate to use where it is not.

These amendments did not have any material
impact on the amounts recognised in prior
periods and are not expected to significantly
affect the current or future periods.

Amendments effective for the annual reporting
periods beginning on or after April 1, 2026:
Classification of Liabilities as Current or Non¬
current and Non-current Liabilities with Covenants
- Amendments to Ind AS 1

This amendment also includes specific provisions that
will take effect for reporting periods beginning on or
after April 01, 2026, as outlined below.

Under the existing Ind AS 1, where there is a breach of
a material provision of a long-term loan arrangement
on or before the end of the reporting period with the
effect that the liability becomes payable on demand
on the reporting date, the entity does not classify
the liability as current, if the lender agreed, after the
reporting period and before the approval of the financial
statements for issue, not to demand payment as a
consequence of the breach. However, the amended
requirements stipulate that entities will no longer be
permitted to consider lender waivers that are granted
after the reporting date but before the standalone
financial statements are approved for the purpose of
classification of loans. This amendment is required to
be applied retrospectively in accordance with Ind AS 8.

The Company does not expect this amendment to have
an impact on its operations or financial statements.

ii. Operating cycle for current and non-current
classification:

All the assets and liabilities are classified as current
if it is expected to realize or settle within 12 months
after the balance sheet date.

iii. The Company discloses Earnings before Interest, Tax,
Depreciation and Amortisation (EBITDA) as a measure
of financial performance as an additional line item on
the face of the Statement of Profit and Loss. EBITDA is
calculated by reducing Cost of materials consumed,
Purchase of stock-in-trade, Changes in inventories of
finished goods, work-in-progress and stock-in-trade,
Employee benefits expense and Other expense,
excluding Depreciation and amortization expenses,
Finance cost and exceptional item from Total
Income for the year.

NOTE 2: CRITICAL ESTIMATES AND JUDGEMENTS

The preparation of financial statements requires the use of
accounting estimates which, by definition, will seldom equal
the actual results. Management also needs to exercise
judgement in applying the Company’s accounting policies.

This note provides an overview of the areas that involved
a higher degree of judgement or complexity, and of items
which are more likely to be materially adjusted due to

estimates and assumptions turning out to be different than
those originally assessed.

Management believes that the estimates used in
preparation of the Financial Statements are prudent and
reasonable. The estimates and the underlying assumptions
are reviewed on an ongoing basis.

The following are the critical estimates and judgements that
have a significant effect on the amounts recognised in the
financial statements.

1) Estimated useful life of property, plant & equipment
and intangible assets :

The charge in respect of periodic depreciation is
derived after determining an estimate of an asset’s
expected useful life and the expected residual value at
the end of its life. The useful lives and residual values
of assets are determined by the management at the
time of acquisition of asset and reviewed periodically,
including at each financial year. The lives are based
on historical experience with similar assets as well
as anticipation of future events, which may impact
their life, such as changes in technology.

2) Leases :

The lease payments are discounted using the Interest
rate implicit in the lease. If that rate cannot be readily
determined, which is generally the case for leases
in the company, the lessee’s incremental borrowing
rate is used, being the rate that the individual lessee
would have to pay to borrow the funds necessary to
obtain an asset of similar value to the right-of-use asset
in a similar economic environment with similar terms,
security and conditions.

In determining the lease term, management considers
all facts and circumstances that create an economic
incentive to exercise an extension option, or not to
exercise a termination option. Extension options
(or periods after termination options) are only
Included in the lease term if the lease is reasonably
certain to be extended (or not terminated). The lease
term is reassessed if an option is actually exercised
(or not exercised) or the Company becomes obliged
to exercise (or not exercise) it. The assessment of
reasonable certainty is only revised if a significant
event or a significant change in circumstances
occurs, which affects this assessment, and that is
within the control of the lessee.

3) Provisions and Contingency:

In the normal course of business, contingent liabilities
may arise from litigation and other claims against the
Company. Potential liabilities that are possible but
not probable of crystallising or are very difficult

1. The above property, plant and equipment have been mortgaged and hypothecated to secure borrowings of the
Company [Refer note 20 and 21].

2. The Company has not revalued its property, plant and equipment.

3. Capital commitment: Refer note 37 (a) for disclosure of contractual commitments for the acquisition of property,
plant and equipment.

4. The Title deeds of all the immovable properties (other than properties where the Company is the lessee and the
lease agreements are duly executed in favour of the lessee) are held in the name of the Company.

3(A)CAPITAL WORK-IN-PROGRESS (CWIP)

Accounting Policy

Capital work-in-progress, representing expenditure incurred in respect of assets under development and not ready for
their intended use, are carried at cost.

Note:

1. There are no inventory written down during any year ended March 31, 2026 and March 31, 2025.

2. Refer note 20 and 21 for charge on current assets including inventories.

includes raw materials in bonded warehouse amounting to '' 91.49 lakhs (March 31, 2025''153.79 Lakhs)

12 TRADE RECEIVABLES

Accounting Policy

Trade receivables are amounts due from customers for goods sold or services performed in the ordinary course of business
and reflect the Companies unconditional right to consideration (that is, payment is due only on the passage of time).

Trade receivables are recognised initially at the transaction price as they do not contain significant financing components.
The Company holds the trade receivables with the objective of collecting the contractual cash flows and therefore
measures them subsequently at amortised cost using the effective interest method, less loss allowance.

1. Cash and cash equivalents are not subject to any restrictions on repatriation.

2. Includes interest accrued.

3. Balances with banks in current accounts include '' 2,786.75 lakhs (March 31, 2026) and Nil (March 31, 2025)
representing unutilised proceeds of the Initial Public Offering, which are required to be utilized for the objects
stated in the prospectus. While the funds are legally available for withdrawal on demand, they are earmarked for
utilization towards capital expenditure.

4. Balances with banks in current accounts amounting to '' 3,500.00 lakhs as at March 31, 2026 (Previous Year
March 31, 2025: Nil). The said amount represents proceeds of a term loan availed during the year for the purpose
of refinancing an existing term loan facility. The amount was temporarily parked in the current account as at the
Balance Sheet date and has been subsequently utilised for the stated purpose of refinancing the existing term loan
subsequent to March 31, 2026.

5. Pertain to IPO proceeds which were unutilised as at March 31, 2026 (March 31, 2025: Nil)

Footnotes:

1. Securities premium :

Securities premium reflects issuance of the shares by the Company at a premium, whether for cash or otherwise
i.e. a sum equal to the aggregate amount of the premium received on shares is transferred to a “securities premium
account” as per the provisions of the Companies Act, 2013. The reserve can be utilised in accordance with the
provisions of the Act.

2. Debenture redemption reserve (DRR):

Pursuant to Companies (Share Capital and Debentures) Amendment Rules, 2019 dated August 16, 2019, the
Company is required to create DRR. During the year ended March 31, 2025, the Company has redeemed the
debenture and accordingly the balance available in DRR has been transfered to retained earnings.

3. General reserve:

General reserve is used from time to time to transfer profits from retained earnings for appropriation purposes.
The general reserve is created by a transfer from one component of equity to another and is not an item of other
comprehensive income.

4. Retained earnings:

The retained earnings reflect the profit after tax of the Company earned till date net of appropriations. The amount
that can be distributed by the Company as dividends to its equity shareholders is determined based on the balance
in this reserve, after considering the requirements of the Companies Act, 2013.

5. Capital redemption reserve:

As per Companies Act, 2013, capital redemption reserve is created for redemption of Non-Convertible Redeemable
Preference Share (RPS) out of free reserves or securities premium. A sum equal to the nominal value of the shares
is transferred to capital redemption reserve. The reserve is utilised in accordance with the provisions of Section 69
of the Companies Act, 2013.

The RPS shall have a preferential right with
respect to the payment of Dividend. In any winding
up or repayment of capital, holders of RPS shall
have a preference on repayment over the equity
shareholders. Any payment made to the RPS
holders by the Company/Guarantor including any
payment of Dividend, Redemption amount or
Purchase Amount, shall be made pro rata across
all RPS holders and no RPS holder shall be given
any preference/ priority over the other.

Considering the terms of instrument the same
has been evaluated as per Ind AS 109-“Financia[
Instruments” as financial liability measured at
fair value as on date of its issue and at amortised
cost subsequently.

3 Secured Term Loans from banks

Proceeds from term loans raised have been
utilized for the purposes for which it was obtained.

(i) Term Loans for vehicles from various

banks aggregating to '' 78.58 lakhs

(March 31, 2025-'' 97.02 Lakhs) are secured
by hypothecation of vehicles. These are
repayable in 35 to 84 monthly installments.
It carries interest rate within range of 9.03%
p.a. to 10.14% p.a.

(ii) Term loan from a bank amounting to '' Nil
lakhs (March 31, 2025-'' 118.71 Lakhs) is
repayable in 48 monthly installments starting
12 months from the date of first disbursal.
It carries interest rate of 1% above MCLR
(Range 6.95% to 9.25%). It is secured by (i)
first charge by way of hypothecation over
raw materials, stock in progress, stock in
transit, finished goods, consumables stores
and spares, entire book debt and other
receivables of the company; and (ii) pari-
passu second charge by way of hypothecation
of entire existing and proposed plant and
machinery of the company, and mortgage of
factory, land & building located at Kheda unit;

(iii) first and exclusive charge by way of lien
over bank deposits of '' 30 lakhs (with SBI) in
the name of the Company.

(iii) Term loan from a bank amounting to ''126.84
lakhs (March 31, 2025-'' 218.32 Lakhs) is
repayable in 48 monthly installments starting
24 months from the date of first disbursal.
It carries interest rate of 1% above MCLR
(Range 6.95% to 9.25%). It is secured by (i)
first charge by way of hypothecation over
raw materials, stock in progress, stock in
transit, finished goods, consumables stores

and spares, entire book debt and other
receivables of the company; and (ii) pari-
passu second charge by way of hypothecation
of entire existing and proposed plant and
machinery of the company, and mortgage of
factory, land & building located at Kheda unit;
(iii) first and exclusive charge by way of lien
over bank deposits of '' 30 lakhs (with SBI) in
the name of the Company.

(iv) Term loan from a bank amounting to
''2,633.65 lakhs (March 31, 2025-'' Nil) is
repayable in 60 monthly installments starting
from the date of first disbursal. It carries
interest rate of 8.00% (5.25% Repo Rate
2.75% Spread) Linked with 3 Months
Repo Rate. It is secured by (i) Fixed
Deposits - 15% FD as Liquid Margin and
(ii) Personal Guarantee by the Guarantors
((Mr. Bhavesh Patel-Chairman and Managing
Director) and Mrs. Manisha Patel wife of
Mr. Bhavesh Patel-Chairman and Managing
Director); (iii) Solar plant.

Debt Covenent: (i) Current Ratio to be maintained
at >=1.33 times (ii) DSCR to be at least 1.25
times (iii) Debt Equity to be <=2 times (iv) NWC to
be at-least 25%.

Unutilised borrowing facilities under this
agreement, amounts to '' 329.22 lakhs as at
March 31, 2026 an Nil as at March 31, 2025.

4 Secured Term Loans from financial institutions

(i) Carrying Value-'' 10,007.87 lakhs as at
March 31, 2026 (March 31, 2025 -
'' 11,505.70 Lakhs)

Term loan from financial institutions
amounting to '' 12,500 lakhs, constituting
(Rupee term loan (RTL) 1 of '' 7,500 lakhs
and RTL 2 of '' 5,000 lakhs) to refinance of
existing borrowings (repayment of Non¬
Convertible Debentures) and has been
utilised for the same purpose.

Interest rate on RTL [email protected]% p.a.,
payable monthly [benchmarked with One
Year MCLR (currently 9.30%) spread of
2.20%]. Interest rate on RTL 2-@FuLLy floating
interest rate of 11.50% p.a. payable monthly
in arrears linked to long term reference rate.

Considering the terms of the above loans,
the borrowings has been identified under Ind
AS 109-“Financia1 Instruments” as financial
liability measured at fair value as on date of
its issue and at amortised cost subsequently

Nature of Security for (i) and (ii)

a. Charge by way of First pari-mortgage
entire fixed assets [movable and
immovable] of the Borrower, present
& future, having minimum FACR/
security cover of 1.25x. Ranking first
pari-passu charge.

b. Charge by way of Second hypothecation
over pari-passu entire current assets
of the Borrower, present and future.
Ranking second pari -passu charge.

c. Pledge of shareholding of the Promoter
(Mr. Bhavesh Patel-Chairman and
Managing Director) (22.87%) in the
Company. Non-disposable undertaking
of balance (68.54%) shareholding of
the Company held by promoter family.
Any increase in shareholding of the
Promoter will result in increase in the
pledge created for the Lenders.

d. Personal Guarantee by the
Guarantors ((Mr. Bhavesh Patel-
Chairman and Managing Director)
and Mrs. Manisha Patel wife of
Mr. Bhavesh Patel-Chairman and
Managing Director).

Debt Covenent- the financial covenants
stipulate that the Debt Service Coverage
Ratio (DSCR) and Fixed Asset Coverage
Ratio (FACR) must each be maintained
at a minimum of 1.25x. The Total Debt
to EBITDA ratio is required to be capped
at a maximum of 3.75x for FY25, and
subsequently reduced to a maximum of
2.75x from FY26 onwards. Similarly, the
Total Debt to Tangible Net Worth (TNW)
ratio should not exceed 3x in FY25
and must tighten to a maximum of 2x
from FY26 onwards. For the purpose
of these covenants, DSCR refers to
the Debt Service Coverage Ratio, and
FACR refers to the Fixed Asset Coverage
Ratio. Total debt includes long-term
borrowings, short-term borrowings,
current maturities of long-term
borrowings, and redeemable preference
shares. EBITDA is defined as EBIT
plus depreciation and amortization,
while TNW comprises paid-up capital
and reserves & surplus, adjusted by

deducting any revaluation reserves,
goodwill, mining rights, trademarks, and
other intangible assets.

(iii) Term loan from financial institutions
amounting to '' 3,500 lakhs were taken during
the year to refinance of existing borrowings.

Carrying Value-'' 3,466.00 lakhs as at
March 31, 2026 (March 31, 2025-Nil)

Interest rate- Floating Rate of Interest
(“ROI”): -9.20% (Bajaj Floating Reference
Rate of 8.45% Spread 0.75%) p.a.

Repayment -Principal-72 equal monthly
installments from first disbursement.
Prepayment option under the agreement is
considered as closely held.

Security-a.first pari pasu charge on all
movable and immovable fixed assets (
including land building, plant and machinery
) of the borrower present and future property
address : block No.873/A, 874, 876, 877P
mouje hariyala, opp amarnath ind and logistic
park, Nr.Tulsi Mahadev Hotel, Ahmedabad
Kheda Highway, Vill: Hariyala-387570
Ta.Kheda, Gujarat-387411. b.second pari
pasu charge over the entire current assets
of the borrower both present and future.
Personal Guarantee by the Guarantors
((Mr. Bhavesh Patel-Chairman and
Managing Director) and Mrs. Manisha Patel
wife of Mr. Bhavesh Patel-Chairman and
Managing Director).

Debt Covenent-

1. Total Debt to EBDITA: <= 4x

2. FACR:>=1.25x

3. DSCR:>=1.25x

4. Total Debt to Networth <= 2.0x

** Total Debt to include all WC and Term
Loans (incl. CPLTD) from all Lenders.
TNW = Net Worth-Revaluation Reserves-
Intangible Assets.

The Company has complied with these debt
covenants throughout the reporting period.
There are no indications that the Company
would have difficulties complying with the
covenants when they will be next tested as at
the year end March 31, 2027.

5 Unsecured Term Loans:

This is repayable in 144 monthly installments. It carries interest rate of EBRR less 0.30%.

The Company and one of the Director of the Company has availed unsecured loan from a bank amounting
to '' 1,875.00 lakhs, out of which '' 1,792.46 lakhs pertain to Company and balance portion pertain to the
Director. Outstanding amount as on March 31, 2026 for the Company portion is '' 1551.34 lakhs (March 31,
2025-'' 1,661.69 lakhs). The director of the Company has provided his personal residential property as
security to obtain the loan for the Company and director himself. The director has accepted his personal
liability towards his share in the loan by entering into a separate arrangement with the Company. The share of
monthly installments including the interest thereon are regularly paid by the director to the Company before
it’s due date and the Company pays the amount on behalf of the director to the bank on due date.

Note

1 It is secured by (i) first charge of hypothecation over raw materials, stock in progress, stock in transit, finished
goods, consumables stores and spares, entire book debt and other receivables of the company; and (ii) second
charge by way of hypothecation of entire existing and proposed plant and machinery of the company, and mortgage
of factory, land & building located at Kheda unit; (iii) first and exclusive charge by way of lien over bank deposits of
'' 30 lakhs (with SBI) in the name of the Company. It carries interest of 8.10% above six month MCLR calculated on
daily products at monthly rests upto September 22, 2022 and interest of 4.75% above six month MCLR calculated
on daily products at monthly rests w.e.f September 23, 2022. The facility is further secured by personal guarantee
of managing director ( Bhaveshbhai Patel ) and one promoter ( Manishaben B Patel ).

2 The deposits has been fully repaid as at March 31, 2026.

Deposits carries interest from 0% p.a, 7% p.a. and 11% p.a., as applicable (March 31, 2025-0% p.a, 7% p.a.
and 11% p.a., as applicable) Deposits are repayable in 6 to 36 months from the date of deposit.

No deposits were received from any director during the year ended March 31, 2026 and March 31, 2025.

3 Unutilised facility related to working capital is '' 841.29 lakhs March 31, 2026 ('' 767.00 lakhs as at March 31,
2025).

28 REVENUE FROM OPERATIONS ACCOUNTING POLICY

Accounting Policy

i) Sale of Products

The Company is engaged in the business of manufacturing & saLe of Pharma Products to the consumers which
mainLy incLudes 1) Large VoLume ParentaL (LVP) [Unit dose container of more than 100 mL] 2) SmaLL VoLume
ParentaLs (SVP) [Unit does container of Less than 100 mL].

SaLes of products are recognised as revenue when controL of the products has transferred, being when product are
deLivered to the customer i.e. satisfaction of the performance obLigation. DeLivery occurs when the products have
been shipped to the specific Location, the risks of obsoLescence and Loss have been transferred to the customer, and

either the customer has accepted the products in accordance with the sales contract, the acceptance provisions
have lapsed, or the Company has objective evidence that aLL criteria for acceptance have been satisfied.

The goods are sold under various schemes having trade discount clause. Revenue from these sales is recognised
based on the price specified in the contract, net of the trade discounts. Accumulated experience is used to estimate
and provide for the discounts, using the expected value method, and revenue is only recognised to the extent that
it is highly probable that a significant reversal will not occur.

A receivable is recognised when the goods are delivered as this is the point in time that the consideration is
unconditional because only the passage of time is required before the payment is due.

ii) Sale of Services

The Company is providing contract manufacturing services under Loan License arrangement. The Company uses its
manufacturing process to produce the end product by using inputs and specifications provided by the customer.
The goods are accepted by the customer after quality checks and the performance obligation is satisfied upon the
delivery of the goods. Sales of service are recognised as revenue when control of the products has transferred,
being when product are delivered to the customer i.e. satisfaction of the performance obligation.

iii) Financing Component

The Company does not have any contracts where the period between the transfer of the promised goods or services
to the customer and payment by the customer exceeds one year. As a consequence, the Company does not adjust
transaction price for the time value of money.

iv) Export incentive relating to incentives received under various export sale schemes, income recognised in the profit
or Loss as and when the export sales made and right to receive the incentive arise.

39 LEASES ACCOUNTING POLICY

Accounting Policy
As a Lessee:

The Company acquires on lease various buildings (offices and warehouses) vehicle and lands. Rental contracts typically
ranges from 2 year to 27 years.

Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease
agreements do not impose any covenants other than the security interests in the leased assets that are held by the
lessor. Leased assets may not be used as security for borrowing purposes.

The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined,
which is generally the case for leases in the company, the lessee’s incremental borrowing rate is used, being the rate

that the individual lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-
of-use asset in a similar economic environment with similar terms, security and conditions.

To determine the incremental borrowing rate, the company uses recent third-party financing received by the individual
lessee as a starting point, adjusted to reflect changes in financing conditions since third party financing was received.

Right-of use assets

Right-of-use assets are generally depreciated over the shorter of the asset’s useful life and the lease term on a
straight-line basis.

Short term lease and lease of low value assets;

Payments associated with short-term leases of equipment and all leases of low-value assets are recognised on a
straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less.
Low-value assets comprises of various warehouses.

See note 49 for the other accounting policies relevant to leases.

This note provides information for leases where the Company is a lessee.

The Company may have extension/termination option as described in (iii) below

(i) Amounts recognised in balance sheet

The balance sheet shows the following amounts relating to leases:

Valuation technique used to determine fair value of financial instruments:

- Measured at FV

The fair value of investment in mutual funds is determined based on unquoted price as at the balance sheet date.

- Measured at amortised cost

The carrying amounts of current financial assets and liabilities are considered to be the same as their fair values due
to short-term nature of such balances. Non-current financial liabilities, representing the borrowings is carried at their
amortised cost using Effective Interest Rate method.

Valuation processes

The finance department of the Company includes a team that performs the valuations of financial assets and
liabilities required for financial reporting purposes, including level 3 fair values. This team reports directly to the Chief
Financial Officer (CFO).

The judgements & estimates made in determining the fair value of the financial instruments-

The fair value of financial instruments as referred to in the note above has been classified into three categories
depending on the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices in
the active market for identical assets or liabilities (level 1 measurements) and lowest priority to unobservable inputs
(level 3 measurements). (a) Only investments in mutual funds are measured at fair value based on unquoted bid price
in active market. These are categorised as Level 1 financial instruments. (b) For all financial instruments referred to
above that have been measured at amortised cost, their carrying values are reasonable approximations of their fair
values. These are classified as level 3 financial instruments. There were no transfers between Level 1, Level 2 and Level
3 during the year.

(d) Financial risk management objectives

The Company’s principal financial liabilities, comprise of borrowings, trade and other payables. The main purpose of
these financial liabilities is to finance the Company’s operations, and projects capital expenditure. The Company’s
principal financial assets include loans, investments, trade receivables and cash and cash equivalents.

The Company’s activities expose it to a variety of financial risks viz credit risk, liquidity risk, Interest rate risk etc.
The Company’s primary focus is to foresee the unpredictability of financial markets and seek to minimize potential
adverse effects on its financial performance. The Company’s senior management oversees the management of these
risks. It advises on financial risks and the appropriate financial risk governance framework for the Company.

Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet
its contractual obligations, and arises principally from the Company’s receivables from customers and from deposits
with banks and other financial instruments. Trade receivables are derived from revenue earned from customers.
Credit risk for trade receivable is managed by the Company through credit approvals, establishing credit limits and
periodic monitoring of the creditworthiness of its customers to which the Company grants credit terms in the normal
course of business. Trade receivables are typically unsecured and are derived from revenue earned from customers
primarily located in India. This is not considered significant component to the overall operations of the Company.

The Company uses the Expected Credit Loss (ECL) model to assess the impairment loss in respect of its financial assets.
As per ECL simplified approach, the Company uses a provision matrix to compute the expected credit loss allowance
for trade receivables. The provision matrix takes into account a continuing credit evaluation of Company’s customers’
financial condition; aging of trade accounts receivable; the value and adequacy of collateral received from the customers
in certain circumstances (if any); the Company’s historical loss experience; and adjustment based on forward looking
information. The Company defines default as an event when there is no reasonable expectation of recovery.

While cash and cash equivalents are also subject to the impairment requirements of Ind AS 109, the Company has not
identified impairment loss in view of banks having high credit rating. In respect of security deposits and other financial
assets, the risk of financial loss on account of credit risk is not expected to be material to the financial statements.
The Company does not have a high concentration of credit risk to a customer or customers forming part of a group
exceeding 10% of company revenue. None of the other financial instruments of the Company result in material
concentration of credit risk. Financial assets are written off when there is no reasonable expectation of recovery, such
as a counter-party failing to engage in a repayment plan with the Company. Where recoveries are made, these are
recognised in profit or loss. Loss allowance as at March 31, 2026 and March 31, 2025 was determined as follows for
trade receivables under the simplified approach:

j) During the year ended March 31, 2026 and March 31,
2025, the Company has not advanced or loaned
or invested funds (either borrowed funds or share
premium or kind of funds) to any other person or
entity, including foreign entities (Intermediaries)
with the understanding (whether recorded in writing
or otherwise) that the Intermediary shall:

a) directly or indirectly lend or invest in other
persons or entities identified in any manner
whatsoever by or on behalf of the Company
(Ultimate Beneficiaries) or

b) provide any guarantee, security or the like to or
on behalf of the ultimate beneficiaries.

During the year ended March 31, 2026 and March 31,
2025, the Company has not received any fund from
any person or entity, including foreign entities (Funding
Party) with the understanding (whether recorded in
writing or otherwise) that the Company shall:

a) directly or indirectly lend or invest in other
persons or entities identified in any manner
whatsoever by or on behalf of the Funding Party
(Ultimate Beneficiaries) or

b) provide any guarantee, security, or the like on
behalf of the ultimate beneficiaries.

k) The Company does not have any investments during
the year ended March 31, 2026 and March 31, 2025.
Accordingly the question of compliance with number
of layers of companies in accordance with clause
87 of Section 2 of the Act read with the Companies
(Restriction on number of Layers) Rules, 2017 during
the year does not arise.

l) The Company has filed quarterly statements with
banks in respect of borrowings from banks on the
security of current assets. The said statements
were in agreement with the unaudited books of
account during the year ended March 31, 2026 and
March 31, 2025.

m) No proceedings have been initiated on or are
pending against the Company for holding benami
property under the Prohibition of Benami Property
Transactions Act, 1988 (as amended in 2016)
(formerly the Benami Transactions (Prohibition) Act,
1988 (45 of 1988)) and Rules made thereunder.

n) The Company is not a Core Investment Company
(CIC) as defined in the regulations made by the
Reserve Bank of India during the current year
and previous year.

o) Audit Trail - The Company has used accounting
software with an audit trail (edit log) facility, which
operated throughout the year for all relevant

transactions. Database-level audit trail functionality
has not been independently verified; management
relies on system controls and assesses the risk
of unauthorized changes as low. No instances of
tampering were observed, and audit trail records
have been preserved as per statutory requirements.

49. SUMMARY OF OTHER ACCOUNTING POLICIES

This note provides a list of other accounting policies
adopted in the preparation of these financial statements
to the extent they have not already been disclosed
in the other notes above. These policies have been
consistently applied to all the years presented, unless
otherwise stated.

a. Rounding of amounts

ALL amounts disclosed in the financial statements
and notes have been rounded off to the nearest
Lakhs as per the requirement of Schedule III, unless
otherwise stated.

b. Property, Plant and Equipment:

Historical cost includes expenditure that is
directLy attributabLe to the acquisition of items.
Subsequent costs are included in the asset’s
carrying amount or recognised as a separate asset,
as appropriate onLy when it is probabLe that future
economic benefits associated with the item wiLL fLow to
the Company and the cost of the item can be measured
reliably. Subsequent cost relating to day-to-day
servicing of the item are not recognised in the carrying
amount of an item of property, plant and equipment;
rather these costs are charged to profit or Loss when
they are incurred.

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 gain or Loss arising on the disposal or retirement of
an item of property, pLant and equipment is determined
as the difference between the saLes proceeds and
the carrying amount of the asset and is recognised in
profit or Loss.

The assets’ residuaL vaLues and usefuL Lives are
reviewed, and adjusted if appropriate, at the end of
each reporting period. Entity-specific detaiLs about the
Company’s poLicy are provided in note 3.

c. Intangible Asset Acquired:

Computer software is carried at cost Less accumuLated
amortization and accumuLated impairment Losses.
Amortization is recognised on a straight Line basis over
its estimated usefuL Life of 3 years. The Estimated usefuL

Life and amortization method are reviewed at the end of
each reporting period and the effect of any changes
in such estimate is accounted for on prospective basis.

An intangibLe asset is derecognised on disposaL, or
when no future economic benefits are expected from
the use or disposaL. Gains or Losses arising from the
derecognition of an intangibLe asset, measured as the
difference between the net disposaL proceeds and the
carrying amount of the asset, are recognised in profit or
Loss when asset is derecognised.

d. Impairment of assets:

Property, pLant and equipment, Right of use assets and
intangibLe assets are reviewed for impairment Losses
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 carrying amount of the assets exceeds its
recoverabLe amount, which is the higher of an asset’s
fair vaLue Less costs of disposaL and vaLue in use.
VaLue in use is the present vaLue of the future cash
fLows expected to be derived from an asset or cash¬
generating unit. An impairment Loss is recognised
immediateLy in profit or Loss.

For the purposes of assessing impairment, assets
are grouped at the Lowest LeveLs 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 units). Non-financiaL
assets, other than goodwiLL, if any, that suffered an
impairment are reviewed for possibLe reversaL of the
impairment at the end of each reporting period.

e. Cash and Cash Equivalent

For the purpose of presentation in the statement of cash
fLows, cash and cash equivaLents incLude cash on hand,
baLances with banks and other short-term highLy Liquid
investments with original maturities of three months or
Less that are readiLy convertibLe to known amounts of
cash and which are subject to an insignificant risk of
changes in vaLue, and bank overdrafts, if any.

f. Inventories

Raw materiaLs and packing materiaL, work in progress,
traded and finished goods are stated at the Lower of
cost and net reaLisabLe vaLue. Cost of raw materiaLs
and packing materiaL comprises cost of purchases.
Cost of work-in-progress and finished goods comprises
direct materiaLs, direct Labour and an appropriate
proportion of variabLe and fixed overhead expenditure,
the Latter being aLLocated on the basis of normaL
operating capacity.

Cost of inventories aLso incLude aLL other costs incurred
in bringing the inventories to their present Location
and condition. Costs of purchased inventory are
determined after deducting rebates and discounts.
Net reaLisabLe 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.

Entity-specific detaiLs about the Company’s poLicy are
provided in note 11.

g. Foreign Currency transactions

The FinanciaL Statement are prepared in India Rupee
(INR) which is functionaL as weLL as presentation
currency of the company.

Foreign currency transactions are transLated into the
functionaL currency using the exchange rates at the dates
of the transactions. Foreign exchange gains and Losses
resuLting from the settLement of such transactions and
from the transLation of monetary assets and LiabiLities
denominated in foreign currencies at year end exchange
rates are recognised in profit or Loss.

Non-monetary items that are measured at fair vaLue in
a foreign currency are transLated using the exchange
rates at the date when the fair vaLue was determined.

h. Government Grant

Grants from the government are recognised at their fair
vaLue where there is a reasonabLe assurance that the
grant wiLL be received, and the Company wiLL compLy
with aLL attached conditions. Note 28 provides further
information. Government grants reLated to assets are
recognised by reducing the carrying amount of the
reLated asset and are recognised in the statement of
profit and Loss over the usefuL Life of the asset through
reduced depreciation expense.

i. Employee Benefit:

(i) Short-term obligations

LiabiLities for wages and saLaries, incLuding non¬
monetary benefits that are expected to be settLed
whoLLy within 12 months after the end of the
period in which the empLoyees render the reLated
service are recognised in respect of empLoyees’
services up to the end of the reporting period and
are measured at the amounts expected to be paid
when the LiabiLities are settLed. The LiabiLities are
presented as current empLoyee benefit obLigations
in the baLance sheet.

(ii) Other long-term employee benefit obligations

LiabiLities for earned Leave that are not expected to
be settLed whoLLy within 12 months after the end

of the period in which the employees render the
related service. These obligations are therefore
measured as the present value of expected future
payments to be made in respect of services provided
by employees up to the end of the reporting
period using the projected unit credit method.
The benefits are discounted using the appropriate
market yields at the end of the reporting period
that have terms approximating to the terms of the
related obligation. Remeasurements as a result of
experience adjustments and changes in actuarial
assumptions are recognised in profit or loss.

The obligations are presented as current liabilities
in the balance sheet if the entity does not have
an unconditional right to defer settlement for at
least twelve months after the reporting period,
regardless of when the actual settlement is
expected to occur.

(iii) Post-employment obligations

The Company operates the following post¬
employment schemes:

(a) defined benefit plans: Gratuity

(b) defined contribution plans: Provident fund,
pension fund, employee state insurance
scheme and labor welfare fund.

Defined Benefit Plans

The liability or asset recognised in the balance
sheet in respect of gratuity plan is the present
value of the defined benefit obligation at the end
of the reporting period less the fair value of plan
assets. The defined benefit obligation is calculated
by an actuary using projected unit credit method.

The present value of the defined benefit obligation
is determined by discounting the estimated future
cash outflows by reference to market yields at the
end of the reporting period on government bonds
that have terms approximately to the terms of the
related obligations.

The net interest cost is calculated by applying the
discount rate to the net balance of the defined
benefit obligation and the fair value of the plan
assets. This cost is included in the employee
benefit expense in the Statement of Profit and Loss.

Remeasurements, comprising actuarial gains and
losses and the effect of the changes to the asset
ceiling (if applicable), is reflected immediately
in the balance sheet with a charge or credit
recognised in other comprehensive income in
the period in which they occur and consequently

recognised in retained earnings and is not
reclassified to profit or loss.

The defined benefit obligation recognised in the
balance sheet represents the actual deficit or
surplus in the Company’s defined benefit plans.
Any surplus resulting from this calculation is
limited to the present value of any economic
benefits available in the form of reductions in
future contributions to the plans.

Defined Contribution Plans

Contributions to retirement benefit plans in the
form of Provident fund, pension fund, employee
state insurance scheme and labor welfare fund
as per regulation are charged as an expense on
an accrual basis when employees have rendered
the service. The Company has no further payment
obligation once the contributions have been paid.

j. Current and Deferred Tax::

The income tax expense or credit for the period is the
tax payable on the current period’s taxable income
based on the applicable income tax rate for each
jurisdiction adjusted by changes in deferred tax assets
and liabilities attributable to temporary differences and
to unused tax losses.

The current income tax charge is calculated on the
basis of the tax laws enacted or substantively enacted
at the end of the reporting period.

Management periodically evaluates positions taken in
tax returns with respect to situations in which applicable
tax regulation is subject to interpretation and considers
whether it is probable that a taxation authority will
accept an uncertain tax treatment. The company
measures its tax balances either based on the most
likely amount or the expected value, depending on
which method provides a better prediction of the
resolution of the uncertainty.

Deferred income tax is provided in full, using the liability
method, on temporary differences arising between the
tax bases of assets and liabilities and their carrying
amounts in the financial statements.

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

Deferred tax assets are recognised for all deductible
temporary differences and unused tax losses only if it is
probable that future taxable amounts will be available
to utilise those temporary differences and losses.

Deferred tax assets and liabilities are offset where there
is a legally enforceable right to offset current tax assets
and liabilities and where the deferred tax balances
relate to the same taxation authority.

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 realise the
asset and settle the liability simultaneously.

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

k. Trade and other payable

These amounts represent liabilities for goods and
services provided to the Company prior to the end of
the financial year which are unpaid. The amounts are
unsecured and are usually paid according to the agreed
credit period. Trade and other payables are presented
as current liabilities unless payment is not due within 12
months after the reporting period. They are recognised
initially at their fair value and subsequently measured
at amortised cost using the effective interest method.

l. Borrowings

Borrowings are initially recognised at fair value, net of
transaction costs incurred. Borrowings are subsequently
measured at amortised cost. Any difference between
the proceeds (net of transaction costs) and the
redemption amount is recognised in profit or loss
over the period of the borrowings using the effective
interest method.

Preference shares, which are mandatorily redeemable
on a specific date, are classified as liabilities.
The dividends on these preference shares are
recognised in profit or loss as finance costs.

Borrowings are removed from the balance sheet when
the obligation specified in the contract is discharged,
cancelled or expired. The difference between the
carrying amount of a financial liability that has been
extinguished or transferred to another party and the
consideration paid, including any non-cash assets
transferred or liabilities assumed, is recognised in
profit or loss as other gains/(losses).

Borrowings are classified as current liabilities unless
the group has an unconditional right to defer settlement
of the liability for at least 12 months after the reporting
period. Where there is a breach of a material provision
of a long- term loan arrangement on or before the end
of the reporting period with the effect that the liability
becomes payable on demand on the reporting date,

the entity does not classify the liability as current, if the
lender agrees, after the reporting period and before
the approval of the financial statements for issue, not
to demand payment as a consequence of the breach.

m. Borrowing costs

General and specific borrowing costs that are
directly attributable to the acquisition, construction
or production of a qualifying asset are capitalised
during the period of time that is required to complete
and prepare the a