ಕಂಪನಿಯ ಅಕೌಂಟಿಗ್ ಪಾಲಿಸಿ Studds Accessories Ltd.

1. Corporate Information

Our Company was incorporated as ''Studds Accessories
Private Limited'' on February 3, 1983, under the Companies
Act 1956, at Haryana, India with a certificate of incorporation
granted by the Registrar of Companies, Delhi and Haryana
at New Delhi ("RoC"). Our Company became a deemed
public limited company in terms of Section 43(A) of the
Companies Act 1956 with effect from March 31, 1990,
and the word ''private'' was deleted from the name of our
Company. Our Company subsequently got converted into
a public limited company pursuant to a special resolution
dated October 22, 1994, passed by the shareholders
of our Company and our name was changed to ''Studds
Accessories Limited''.

We design, manufacture, market and sell two-wheeler,
bicycle helmets and other accessories (such as two¬
wheeler luggage, gloves, helmet locking device, rain suits,
riding jacket and eye wear) under the ''STUDDS'' and ''SMK''
brands. Our products are sold pan-India and in more than
70 countries internationally, with our key export markets
situated across Europe, Asia, United States of America,
Australia, South America and Africa. We also manufacture
helmets for Jay Squared LLC, which are sold under the
"Daytona" brand in the United States, as well as for O''Neal
under their branding, supplying to markets in Europe,
United States of America and Australia.

During the year ended 31 March 2026, the equity shares
of the Company were listed on BSE Limited and National
Stock Exchange of India Limited pursuant to an initial public
offering comprising entirely an offer for sale by existing
shareholders. No funds were raised by the Company by
way of fresh issue of equity shares.

2. Basis for preparation

(a) Statement of Compliance and basis for
preparation

The Standalone Financial Statements comprise the
Standalone Balance Sheet as at 31 March 2026 and 31
March 2025, the Standalone Statement of Profit and Loss
(including Other Comprehensive Income), the Standalone
Statement of Cash Flows, the Standalone Statement of
Changes in Equity for the year ended 31 March 2026 and
31 March 2025, and notes to the standalone financial
statements including material accounting policies
(hereinafter collectively referred to as "Standalone Financial
Statements").

These Standalone Financial Statements have been
prepared as a going concern in accordance with the Indian
Accounting Standards prescribed under Section 133 of
the Companies Act, 2013 read with the Companies (Indian
Accounting Standards) Rules, 2015, as amended ("Ind AS"),
and other accounting principles generally accepted in

India. These Standalone Financial Statements have been
approved by the Board of Directors on 23 May 2026.

The Standalone Financial Statements for the year ended 31
March 2026 include comparative figures for the year ended
31 March 2025 and have been prepared in accordance
with the requirements of the Companies Act, 2013. The
standalone annual financial results for the year ended 31
March 2026 have also been prepared in accordance with
the recognition and measurement principles laid down in
Ind AS and in terms of Regulation 33 of the SEBI (Listing
Obligations and Disclosure Requirements) Regulations,
2015, as amended.

The accounting policies have been consistently applied by
the Company in preparation of the Standalone Financial
Statements and are consistent with those adopted in the
preparation of the standalone financial statements for the
year ended 31 March 2025, except where a newly issued
or amended accounting standard is initially adopted or a
revision to an existing accounting policy is required by law
or by Ind AS.

(b) Functional and presentation currency

These Standalone Financial Statements are presented in
Indian Rupees (INR), which is the company''s functional and
presentation currency. All amounts have been rounded off
to the nearest Million, up to two decimal places, unless
otherwise indicated.

(c) Basis of measurement

These financial statements have been prepared on
the historical cost basis, except for net defined benefit
employee obligations which is measured at the present
value of defined benefit obligation.

(d) Current versus non-current classification

The Company presents assets and liabilities in the
Standalone statement of assets and liabilities based on
current/ non-current classification.

• An asset is treated as current when it is: -

• expected to be realized or intended to be sold or
consumed in the normal operating cycle, or

• held primarily for the purpose of trading, or

• expected to be realized within twelve months after
the reporting period, or

• cash or cash equivalents, unless restricted from
being exchanged or used to settle a liability for at
least twelve months after the reporting period.

• The Company classifies all other Assets as
non-current.

• A liability is treated as current when it is: -

• expected to be settled in the normal operating cycle, or

• held primarily for the purpose of trading, or

• due to be settled within twelve months after the
reporting period, or

• there is no unconditional right to defer the settlement
of the liability for at least twelve months after the
reporting period.

• The Company classifies all other liabilities as
non-current.

• Deferred tax assets and liabilities are classified as
non-current assets and liabilities.

• The operating cycle is the time between the acquisition
of assets for processing and their realization in cash
and cash equivalents. The Company has identified
twelve months as its operating cycle.

(e) Revenue Recognition

Revenue is recognised in accordance with Ind AS 115,
Revenue from Contracts with Customers, when control of
the goods is transferred to the customer and the Company
has satisfied its performance obligations.

Revenue from the sale of goods is recognized when control
of the products being sold is transferred to our customer
and when there are no longer any unfulfilled obligations.
The Performance Obligations in our contracts are fulfilled
at the time of dispatch, delivery or upon formal customer
acceptance depending on customer terms.

Revenue is measured on the basis of contracted price, after
deduction of any trade discounts, volume rebates and any
taxes or duties collected on behalf of the Government such
as goods and services tax, etc. Accumulated experience
is used to estimate the provision for such discounts and
rebates. Revenue is only recognized to the extent that it is
highly probable a material reversal will not occur.

Our customers have the contractual right to return goods
only when authorized by the Company. An estimate is
made of goods that will be returned and a liability is
recognized for this amount using a best estimate based
on accumulated experience.

(i) Contract Balance

The Company recognizes contract liabilities for
consideration received in respect of unsatisfied
performance obligations and reports these amounts
as other liabilities. Advance received from customer
are included in contract liabilities.

(f) Other Income

Interest income is recognized using the effective interest
rate (EIR) method.

Income from services rendered is recognized based on
agreements/arrangements with the customers as the
service is performed and there are no unfulfilled obligations.

(g) Expenditure

Expenses are accounted for on an accrual basis.

(h) Foreign Currency

Foreign currency transactions and balances are accounted
for in accordance with Ind AS 21, The Effects of Changes in
Foreign Exchange Rates.

Items included in the financial statements are measured
using the currency of the primary economic environment
in which the entity operates (''the functional currency'').

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 generally recognized in statement of profit or loss.

Monetary assets and liabilities denominated in foreign
currencies are translated into the functional currency at
the exchange rate at the reporting date. Non-monetary
items which are carried at historical cost denominated
in a foreign currency are reported using the exchange
rate at the date of the transaction. Non-monetary items
measured at fair value in a foreign currency are translated
using the exchange rates at the date when the fair value
is determined. The gain or loss arising on translation of
non-monetary items is recognized in line with the gain or
loss of the item that gave rise to the translation difference
(translation differences on items whose gain or loss
is recognized in Other Comprehensive Income or the
Statement of Profit and Loss are also recognized in Other
Comprehensive Income or the Statement of Profit and Loss
respectively).

(i) Property, Plant and Equipment

Property, plant and equipment are recognised and
measured in accordance with Ind AS 16, Property, Plant
and Equipment.

Property, Plant and Equipment (PPE) are stated at cost
of acquisition or construction, net of accumulated
depreciation and accumulated impairment losses, if any.
The cost of tangible asset includes purchase cost (net of

rebates and discounts) including any import duties and
non-refundable taxes, and any directly attributable costs
on making the asset ready for its intended use.

Subsequent costs are included in the asset''s carrying
amount or recognized 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. The carrying
amount of any component accounted for as a separate
asset is derecognized when replaced. The other repairs
and maintenance of revenue nature are charged to the
Statement of Profit and Loss during the reporting period
in which they have incurred.

Capital work in progress is stated at cost less impairment.
Plant and equipment are stated at cost, net of accumulated
depreciation and accumulated impairment losses, if
any. Such cost includes the cost of replacing part of the
plant and equipment and borrowing costs for long-term
construction projects if the recognition criteria are met.
Freehold land is not depreciated.

When significant parts of plant and equipment are required
to be replaced at intervals, the Company depreciates them
separately based on their specific useful lives. Likewise,
when a major inspection is performed, its cost is recognized
in the carrying amount of the plant and equipment as a
replacement if the recognition criteria are satisfied. All
other repair and maintenance costs are recognized in
profit or loss as incurred.

Depreciation is calculated using the straight-line method
on a pro-rata basis from the date on which each asset
is ready for its intended use to allocate their cost, net of
their residual values, over their estimated useful lives.
Depreciation is provided on estimated useful lives, as
specified in Part "C" of the Schedule II of the Companies
Act, 2013.

An item of property, plant and equipment and any significant
part initially recognized is derecognized 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 income statement when the asset is
derecognized.

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

(j) Intangible Assets

Intangible assets are recognised and measured in
accordance with Ind AS 38, Intangible Assets.

Intangible assets with definite useful life acquired separately
are measured on initial recognition at cost. Following initial
recognition, intangible assets are carried at cost less any
accumulated amortization and accumulated impairment
losses. Internally generated intangibles, excluding
capitalized development costs, are not capitalized and
the related expenditure is reflected in profit or loss in the
period in which the expenditure is incurred.

The Cost of Intangible assets are amortized on a straight¬
line basis over their estimated useful life which is as follows.
Residual Value is considered as Nil in the below cases:

The amortization period and method are reviewed at least
at each financial year end. If the expected useful life of the
asset is significantly different from previous estimates, the
amortization period is changed accordingly.

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 income statement when the
asset is derecognized.

(k) Borrowing Costs

Borrowing costs are accounted for in accordance with Ind
AS 23, Borrowing Costs.

Borrowing cost includes interest expense as per Effective
Interest Rate (EIR).

Borrowing costs directly attributable to the acquisition
or construction of an asset that necessarily takes a
substantial period of time to get ready for its intended
use are capitalized as part of the cost of the asset until
such time that the assets are substantially ready for their
intended use. Where funds are borrowed specifically
to finance a project, the amount capitalized represents
the actual borrowing costs incurred. Where surplus
funds are available out of money borrowed specifically
to finance project, the income generated from such
current investments is deducted from the total capitalized
borrowing cost. Where the funds used to finance a project
form part of general borrowings, the amount capitalized
is calculated using a weighted average of rates applicable
to relevant general borrowings of the Company during the
period/year. Capitalization of borrowing costs is suspended
and charged to profit and loss during the extended periods
when the active development on the qualifying assets is
interrupted.

EIR is the rate that exactly discounts the estimated future
cash payments or receipts over the expected life of the
financial instrument or a shorter period, where appropriate,
to the gross carrying amount of the financial asset or to the
amortized cost of the financial liability. When calculating the
effective interest rate, the Company estimates the expected
cash flows by considering all the contractual terms of the
financial instruments but does not consider the expected
credit losses.

(l) Inventories

Inventories are valued in accordance with Ind AS 2,
Inventories.

Inventories are valued at the lower of cost or net realizable
value, less any provisions for obsolescence. Cost is
determined on the following basis: -

Raw Materials are recorded at cost on a weighted average
cost formula.

Stores & spares are recorded at cost on a weighted average
cost formula.

Finished goods and work-in-process are valued at raw
material cost cost of conversion and attributable
proportion of manufacturing overhead incurred in bringing
inventories to its present location and condition.

Scrap is valued at net realizable value.

Machinery spares (other than those qualified to be
capitalized as PPE and depreciated accordingly) are
charged to profit and loss on consumption.

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.