2.1.13 Provisions, Contingent Liabilities and Contingent Assets

The Company recognizes provisions when a present obligation (legal or constructive) as a
result of a past event exists and it is probable that an outflow of resources embodying economic
benefits will be required to settle such obligation and the amount of such obligation can be
reliably estimated. If the effect of time value of money is material, provisions are discounted
using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability.

When discounting is used, the increase in the provision due to the passage of time is recognized
as a finance cost. A disclosure for a contingent liability is made when there is a possible
obligation or a present obligation that may, but probably will not require an outflow of resources
embodying economic benefits or the amount of such obligation cannot be measured reliably.
When there is a possible obligation or a present obligation in respect of which likelihood of
outflow of resources embodying economic benefits is remote, no provision or disclosure is
made. Contingent assets are not recognised but disclosed where an inflow of economic
benefits is probable.

24.1.14 Intangible Assets

The Company identifies an identifiable non-monetary asset without physical substance as an
intangible asset. The Company recognises an intangible asset if it is probable that expected
future economic benefits attributable to the asset will flow to the entity and the cost of the asset
can be measured reliably. An intangible asset is initially measured at cost unless acquired in a
business combination in which case an intangible asset is measured at its fair value on the date
of acquisition. The Company identifies research phase and development phase of an internally
generated intangible asset. Expenditure incurred on research phase is recognised as an
expense in the profit or loss for the period in which incurred. Expenditure on development phase
are capitalised only when the Company is able to demonstrate the technical feasibility of
completing the intangible asset, the ability to use the intangible asset and the development
expenditure can be measured reliably. The Company subsequently measures all intangible
assets at cost less accumulated amortisation less accumulated impairment. An intangible asset
is amortised on a straight-line basis over its useful life. Amortisation commences when the asset
is in the location and condition necessary for it to be capable of operating in the manner
intended by management. Amortisation ceases at the earlier of the date that the asset is
classified as held for sale (or included in a disposal group that is classified as held for sale) and
the date that the asset is derecognised. The amortisation charge for each period is recognised
in profit or loss unless the charge is a part of the cost of another asset. The amortisation period
and method are reviewed at each financial year end. Any change in the period or method is
accounted for as a change in accounting estimate prospectively. The Company derecognises
an intangible asset on its disposal or when no future economic benefits are expected from its
use or disposal and any gain or loss on derecognition is recognised in profit or loss as gain / loss
on derecognition of asset.

2.1.14.a Transition to Ind AS

On transition to Ind AS, the Company has elected to continue with the carrying value of all of its
property, plant and equipment recognised as at the beginning of 1st April, 2020 (transition date)
measured as per the previous GAAP and use that carrying value as the deemed cost of
property, plant and equipment.

2.1.15 Income Taxes

Income tax expense represents the sum of tax currently payable and deferred tax. Tax is
recognised in profit or loss except to the extent that it relates to items recognised directly in
equity or in other comprehensive income.

2.1.15. a Current Tax

Current Tax includes provision for income tax computed at the tax rate applicable as per Income
Tax Act, 1961. Tax on profit for the period is determined on the basis of estimated taxable
income and tax credits computed in accordance with the provision of the relevant tax laws and
based on expected outcome of assessments / appeals.

2.1.15. b Deferred Tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets
and liabilities in the balance sheet and the corresponding tax bases used in the computation of
taxable profit. Deferred tax liabilities are recognised for all taxable temporary differences.
Deferred tax assets are recognised for all deductible temporary differences, unabsorbed losses
and tax credits to the extent that it is probable that future taxable profits will be available against
which those deductible temporary differences, unabsorbed losses and tax credits will be
utilised. The carrying amount of deferred tax assets is reviewed at the end of financial year and
reduced to the extent that it is no longer probable that sufficient taxable profits will be available
to allow all or part of the asset to be recovered. Deferred tax assets and liabilities are measured
at the tax rates that are expected to apply in the period in which the liability is expected to be
settled or the asset realised, based on tax rates and tax laws that have been substantively
enacted by the balance sheet date. Deferred tax assets and liabilities are offset when there is a
legally enforceable right to set off current tax assets against current tax liabilities and when they
relate to income taxes levied by the same taxation authority and the Company intends to settle
its current tax assets and liabilities on a net basis.

2.1.16 Assets Held for Sale

The Company classifies assets as held for sale if their carrying amounts will be recovered
principally through a sale rather than through continuing use of the assets and actions required
to complete such sale indicate that it is unlikely that significant changes to the plan to sell will be
made or that the decision to sell will be withdrawn. Also, such assets are classified as held for
sale only if the management expects to complete the sale within one year from the date of
classification. Assets classified as held for sale are measured at the lower of their carrying
amount and the fair value less cost to sell. Non- current assets are not depreciated or amortized.

2.1.17 Fair Value Measurement

The Company measures financial instruments at fair value in accordance with the accounting
policies mentioned above. Fair value is the price that would be received to sell an asset or paid
to transfer a liability in an orderly transaction between market participants at the measurement
date. The fair value measurement is based on the presumption that the transaction to sell the
asset or transfer the liability takes place either:

• In the principal market for asset or liability, or

• In the absence of a principal market, in the most advantageous market for asset or liability.

All assets and liabilities for which fair value is measured or disclosed in the financial statements
are categorized within the fair value hierarchy that categorizes into three levels, described as
follows, the inputs to valuation techniques used to measure value. The fair value hierarchy
gives the highest priority to quoted prices in active markets for identical assets or liabilities
(Level 1 inputs) and the lowest priority to unobservable inputs (Level 3 inputs).

Level 1 — quoted market prices in active markets for identical assets or liabilities

Level 2 — inputs other than quoted prices included within Level 1 that are observable for the asset or
liability, either directly or indirectly

Level 3 — inputs that are unobservable for the asset or liability

For assets and liabilities that are recognized in the financial statements at fair value on a recurring basis,
the Company determines whether transfers have occurred between levels in the hierarchy by re¬
assessing categorization at the end of each reporting period and discloses the same.

2.1.19 Dividend

The Company recognises a liability for dividends to equity holders of the Company when the
dividend is approved by the shareholders. A corresponding amount is recognised directly in
equity.

2.1.20 Cash and cash equivalents

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short¬
term balances (with an original maturity of three months or less from the date of acquisition),
which are subject to an insignificant risk of changes in value.

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and
short-term deposits, as defined above, net of outstanding bank overdrafts as they are
considered an integral part of the Company's cash management.

2.1.21 Statement of Cash flows

Cash flows are reported using the indirect method, whereby profit / (loss) before tax is adjusted
for the effects of transactions of non-cash nature and any deferrals or accruals of past or future
cash receipts or payments. The cash flows from operating, investing and financing activities of
the Company are segregated based on the available information.

For M/s. SATHULURI & CO For and On Behalf of Board Of Directors

Chartered Accountants
FRN No.006383S

Sd/- Sd/-

^Sd/- Meena Kerur Srikrishna Naik

^{S S P}ra^kash Director Managing Director

Partners
M. No. 202710

UDIN : 25202710BMKWYR2312

Sd/- Sd/-

Place : Hyderabad Pradeep Kumar M. Priya Mittal

Date : 22-05-2025 Chief Financial Officer Company Secretary